748 Governance and Administration Committee 6 December 2017 Adopted Report

748 Adopted Report

of the

Governance & Administration Committee Meeting

held

Wednesday 6 December 2017 at

9am

City of Gold Coast Council Chambers 135 Bundall Road Surfers Paradise

748th Council Meeting 8 December 2017 2 Governance & Administration Committee Meeting 6 December 2017 Adopted Report

Index Adopted Report

Governance & Administration Committee Meeting Wednesday, 6 December 2017

Item Direct. File Page Subject

1 OCOO LG115/1328/01/2017(P1) 4 Governance And Administration Committee Action List And Forward Planning Schedule

2 OCEO LG426/639/-(P32) 5 Surfers Paradise Alliance Ltd – Bi-Annual Performance Review

3 OCEO LG426/1100(P8) 75 Broadbeach Alliance Limited – Bi-Annual Performance Review

4 OCOO LG113/580/21(P1) 129 City Operational Plan 2017-18 - Performance Report Quarter One

5 OS HR829/02(P1) 135 Travel And Travel Related Expenses - Councillors And Staff 1 July – 30 September 2017

6 OS PN91449/20/01(P1) 144 Proposed Permanent Relocation Of Electricity Substation, Surfers Paradise

Closed Session

7 OCEO LG449/756/04/03(P1) 157 State Of The Organisation Report (As At 30 June 2017)

8 OS RV36/188/-(P14) 221 2017-18 Quarter One Report Rates And Water Debt Management

9 OS RV36/188/02(P2) 228 Sale Of Land for Overdue Rates

General Business

10 OCEO LG115/-/-(CF) 237 Local Government Act 2009 Compliance Matter

KEY: OCEO - Office of the Chief Executive Officer GCWW - Gold Coast Water & Waste CI - City Infrastructure OCOO - Office of the Chief Operating Officer CS - Community Services OS - Organisational Services EDMP - Economic Development & Major Projects PE - Planning & Environment

748th Council Meeting 8 December 2017 3 Governance & Administration Committee Meeting 6 December 2017 Adopted Report ADOPTED BY COUNCIL 8 DECEMBER 2017 RESOLUTION G17.1208.022 moved Cr Owen-Jones seconded Cr McDonald That the Report of the Governance & Administration Committee Recommendations of Wednesday, 6 December 2017, numbered GA17.1206.001 to GA17.1206.010, be adopted with the exception of Recommendation Numbers GA17.1206.006 and GA17.1206.010 which were specifically resolved.

CARRIED ATTENDANCE Cr W M A Owen-Jones (Chairperson) Cr D I McDonald Cr D Gates Acting Mayor left meeting at 10.11am Cr K L Boulton Cr D M Crichlow OAM left meeting at 10.12am Cr G M Tozer Cr P A Taylor Cr PC Young Visitor Mr A J McCabe Chief Operating Officer Mr G Potter Director Organisational Services Mr L Wallace Manager Executive Services (part) Mr S Bowden Co-ordinator Controlled Entities Community Grants (part) Mr G Schafer Executive Co-ordinator Procurement Operations (part) Mr L Jackson Acting Executive Co-ordinator Revenue Services (part) APOLOGY / LEAVE OF ABSENCE Nil PRESENTATIONS Item 2 Surfers Paradise Alliance Ltd – Bi-Annual Performance Review 9am

Ms Laura Younger (Chairperson) and Mr Mike Winlaw (CEO)

Item 3 Broadbeach Alliance Limited – Bi-Annual Performance Review 9:30am Mr Darryl Kelly (Chairperson) and Ms Jan McCormick (CEO)

748th Council Meeting 8 December 2017 4 Governance & Administration Committee Meeting 6 December 2017 Adopted Report ITEM 1 OFFICE OF THE CHIEF OPERATING OFFICER GOVERNANCE AND ADMINISTRATION COMMITTEE ACTION LIST AND FORWARD PLANNING SCHEDULE LG115/1328/01/2018(P1) Item Action Officer &/or

Branch Action/Previous Resolution

(749) Governance and Administration Committee 26 January 2018

Cyber Security Policy and Standards Office of the Chief Operating Officer

RECOMMENDATION It is recommended that Council resolves as follows: That the list of proposed Agenda Items for the Governance and Administration Committee be noted. Authorised by: Joe McCabe TRACKS REF: # 54648256 Chief Operating Officer COMMITTEE RECOMMENDATION GA17.1206.001 moved Cr Crichlow seconded Cr Taylor That the list of proposed Agenda Items for the Governance and Administration Committee be noted.

CARRIED

748th Council Meeting 8 December 2017 5 Governance & Administration Committee Meeting 6 December 2017 Adopted Report ITEM 2 OFFICE OF THE CHIEF EXECUTIVE OFFICER SURFERS PARADISE ALLIANCE LTD – BI-ANNUAL PERFORMANCE REVIEW LG426/639/-(P32) Refer attachments: Bi-annual Performance Report (Attachment 1) Supplementary Corporate Governance Report (Attachment 2) Annual Financial Report for 2016-17 (Attachment 3) 1 BASIS FOR CONFIDENTIALITY Not applicable 2 EXECUTIVE SUMMARY Not applicable 3 PURPOSE OF REPORT The purpose of this report is to present the Bi-annual Performance Report for Surfers Paradise Alliance Ltd (SPA) for the six month period ended 30 June 2017. 4 PREVIOUS RESOLUTIONS Governance Administration & Finance Committee (minute GA17.0419.003): That Council notes the Surfers Paradise Alliance (SPA) bi-annual performance reports for the half-year ended 31 December 2016. 5 DISCUSSION 5.1 Background The City contracts with Surfers Paradise Alliance Ltd (SPA) to manage the provision of marketing, promotional and security patrol activities in the Surfers Paradise precinct. Council is the sole member of SPA. Consequently, SPA is classified as a “public sector controlled entity” under the Auditor-General Act 2009. The City’s current Service Agreement concludes on 30 June 2019. The Agreement requires SPA to submit performance reports to Council for review on a biannual basis in March and October. SPA’s performance was last reviewed by the Governance & Administration Committee at its meeting on 19 April 2017. 5.2 Review of Performance SPA’s Performance Report submission was received on 9 November (see Attachments 1 & 2). The report comprises three components, these being: • Corporate Governance • Alignment with Destination Tourism Management Plan (DTMP) / KPI’s • Financial Management SPA has also submitted a supplementary Corporate Governance Report (see Attachment 2) which includes the following sections:

• Chairperson’s Report • Executive Report • Strategic KPIs • Organisational Chart • Moving Forward in 2017-18

748th Council Meeting 8 December 2017 6 Governance & Administration Committee Meeting 6 December 2017 Adopted Report ITEM 2 (Continued) SURFERS PARADISE ALLIANCE LTD – BI-ANNUAL PERFORMANCE REVIEW LG426/639/-(P32) Corporate Governance All governance requirements have been recorded in the performance report. It is considered that SPA is satisfactorily meeting its obligations under the service agreement. Board Appointments made by Member’s Representative There have been no resignations or new appointments since the last report to the Committee (19 April 2017). Work Health & Safety A recent interim audit conducted by the regulator identified a range of improvements to the WHS management systems of the four controlled entities to bring them up to the required standard (this essentially being best practice standard for large organisations). Given the criticality of Council retaining its self-insurance licence, Council’s Corporate Safety & Risk Branch is working closely with all four entities to implement the required improvements ahead of the formal external audit in November 2017. Alignment with Destination Tourism Management Plan (DTMP) / KPI’s DTMP Partnership Agreement One of the key elements of the DTMP was to provide for the establishment of a Gold Coast Tourism Partnership Agreement between Gold Coast Tourism, the City and Precinct Entities. The Partnership Agreement, which was recently signed by all parties, provides for: • a long-term commitment to the partnership • delineation of clear roles and responsibilities • shared destination performance outcomes • comprehensive two-way reporting and accountability

City-wide Event Coordination The CEO’s of the three precinct entities (and the Arts Centre) meet with the Executive Officer City Events on a regular basis to collaborate and coordinate with regards to the nature and timing of events held across the city. The last meeting was held on 29 August 2017. The next meeting is scheduled for December 2017. KPI’s SPA’s performance against agreed KPI’s is detailed in Attachment 1. The Coordinator Tourism has reviewed SPA’s performance against the agreed KPI’s and advises as follows:

SPA’s performance against KPI’s for the six month period ending 30 June 2017 is consistent with the objectives of the DTMP and Surfers Paradise Alliance with the organisation meeting all KPI targets. SPA is performing well in regards to major events with a Silver (Surfers Paradise Sand Safari Arts Festival) and Bronze Surfers Paradise LIVE award in the Major Events category of the 2017 Queensland Tourism Awards. Work still needs to occur in relation to the KPI seeking the entities working together to stage a City wide event. The intention of the KPI is to see the entities combine to grow a significant scale event over time that would attract new visitation to the city. Both the Tourism and Events team within Economic Development are working with the entities to provide support and a

748th Council Meeting 8 December 2017 7 Governance & Administration Committee Meeting 6 December 2017 Adopted Report ITEM 2 (Continued) SURFERS PARADISE ALLIANCE LTD – BI-ANNUAL PERFORMANCE REVIEW LG426/639/-(P32)

clear direction in regards to this and as such it is expected further progress will be provided in the next bi-annual report.

Financial Management

SPA’s financial performance is detailed in Attachment 1. The Corporate Financial Accountant has reviewed the information provided by SPA and advises as follows:

No financial issues to note for SPA for year ended 30 June 2017 and the financial management section of the report is consistent with their audited financial statements.

A copy of the Annual Financial Report is attached for noting (see Attachment 3). The Queensland Audit Office has provided an opinion that SPA’s Annual Financial Report gives a true and fair view of the Company’s financial position and performance and complies with the Australian Accounting Standards and Corporations Regulations 2001. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Gold Coast 2020 2.0 Prosperity built on a strong diverse economy What we want to see by 2020 2.5 We are a globally recognised tourism destination - our city attracts visitors from all over the world Key strategy: Implement the Economic Development Strategy to build and create a

sustainable local, national and international tourism market for the city.

Key programs of work: Develop and implement a citywide Destination Management

Plan. Work with Gold Coast Tourism to promote the city as a world-class tourism destination through a range of marketing programs and activities.

Operational Plan There are no specific strategies relating to SPA contained in 2016-17 or 2017-18 Operational Plans. 7 GOLD COAST 2018 COMMONWEALTH GAMES IMPACT Not applicable 8 FUNDING AND RESOURCING REQUIREMENTS Not applicable 9 RISK MANAGEMENT The funding of SPA does not relate directly to any of the Corporate Risks. However it does relate to Directorate Risk No. CO000410 below, which is currently rated as Low 48 under Council’s Risk Management methodology.

748th Council Meeting 8 December 2017 8 Governance & Administration Committee Meeting 6 December 2017 Adopted Report ITEM 2 (Continued) SURFERS PARADISE ALLIANCE LTD – BI-ANNUAL PERFORMANCE REVIEW LG426/639/-(P32)

Adverse impact on Council through inappropriate/illegal actions of any of Council's controlled entities for which the OCEO is responsible (ie, Gold Coast Arts Centre Pty Ltd, Surfers Paradise Alliance Ltd, Broadbeach Alliance Ltd and Connecting Southern Gold Coast Ltd)

The bi-annual performance review process and the appointment of a Councillor to each of the boards are mitigations for this risk. 10 STATUTORY MATTERS Corporations Act 2001

SPA is registered with the Australian Securities & Investments Commission as a company limited by guarantee. Its operations are governed by the Corporations Act 2001.

Auditor-General Act 2009

Under the Auditor-General Act 2009, SPA is classified as a “public sector controlled entity”. Section 5 of the Act states:

5 What is a controlled entity (1) An entity is a controlled entity if it is subject to the control of 1 or more of the following (the controlling entity)—

(a) a department; (b) a local government; (c) a statutory body; (d) a GOC; (e) another entity subject to the control of 1 or more of the entities mentioned in paragraphs (a) to (d).

(2) In this section—control means the capacity of an entity to dominate decision-making, directly or indirectly, in relation to the financial and operating policies of another entity so as to enable the other entity to operate with it in pursuing the objectives of the controlling entity.

With respect to the City’s “control” of SPA, the City:

• is the sole member of the Company and therefore has control over its constitution as well as the appointment of the directors and chairperson

• has control over the Company’s specific role and responsibilities via the service agreement

• provides annual funding in accordance with the service agreement • regularly reviews the Company’s performance against the service agreement including

the strategic direction of the Company. The Act requires that Queensland Audit Office be appointed as the Company’s Auditor. Workers’ Compensation & Rehabilitation Act 2003 SPA is also classified as a “Related Body Corporate” of the City under this Act and the Corporations Act 2001 and, as such, the City must provide workers’ compensation coverage to SPA. As Council self-insures for workers’ compensation, like Council, SPA must maintain a work health and safety management system that is compliant with the National Self-insurer OHS Management System Audit Tool (NAT 3- 2014) – and forms part of the external audit of Council’s WHS Management System by the regulator.

748th Council Meeting 8 December 2017 9 Governance & Administration Committee Meeting 6 December 2017 Adopted Report ITEM 2 (Continued) SURFERS PARADISE ALLIANCE LTD – BI-ANNUAL PERFORMANCE REVIEW LG426/639/-(P32) 11 COUNCIL POLICIES Not applicable

12 DELEGATIONS The Council has delegated authority to the Chief Executive Officer to determine all matters within the responsibility of Council as the sole member of the Company – with the exception of the determination of annual funding and review of the entity’s performance. 13 COORDINATION & CONSULTATION Name and/or Title of the Stakeholder Consulted

Directorate or Organisation

Is the Stakeholder Satisfied With Content of Report and Recommendations

Joanne Cullen, Corporate Finance Accountant

OCOO (Corporate Finance)

Yes

Scott Krueger, Coordinator Tourism

EDMP Yes

14 STAKEHOLDER IMPACTS The SPA Board and Council, being the sole Member of the Company, are the key stakeholders in terms of SPA’s performance in the achievement of the objectives detailed in SPA’s Constitution, the obligations detailed in its service agreement with Council and the agreed KPI’s. The SPA Board is broadly representative of the stakeholders in the Surfers Paradise precinct. SPA works cooperatively and in consultation with Gold Coast Tourism and the other precinct entities in accordance with the new Destination Tourism Management Plan Partnership Agreement. 15 TIMING The next bi-annual performance review is due in March 2018 (for the six month period ending 31 December 2017). 16 CONCLUSION It is considered that SPA is satisfactorily performing its roles and responsibilities under the Service Agreement and meeting the objects for which it was established.

17 RECOMMENDATION It is recommended that Council resolves as follows: That Council notes Surfers Paradise Alliance Ltd’s (SPA) bi-annual performance report for the half-year ended 30 June 2017 and its Annual Financial Report for the year ended 30 June 2017. Author: Authorised by: Stephen Bowden Dale Dickson Coordinator Controlled Entities & Community Grants Chief Executive Officer 23 November 2017 Document # 65651202

748th Council Meeting 8 December 2017 10 Governance & Administration Committee Meeting 6 December 2017 Adopted Report ITEM 2 (Continued) SURFERS PARADISE ALLIANCE LTD – BI-ANNUAL PERFORMANCE REVIEW LG426/639/-(P32) CLOSED SESSION LOCAL GOVERNMENT ACT 2009 AND SUPPORTING REGULATIONS PROCEDURAL MOTION moved Cr Owen-Jones seconded Cr Taylor That Committee move into Closed Session pursuant to section 275 (1) of the Local Government Regulation 2012, for the consideration of the following item for the reason shown:-

Item Subject Reason

2 Surfers Paradise Alliance Ltd – Bi-Annual Performance Review Staffing Matter

CARRIED

PROCEDURAL MOTION moved Cr Tozer seconded Cr McDonald That the Committee move into Open Session.

CARRIED Following resumption into open session, item 2 was moved and carried as shown below. COMMITTEE RECOMMENDATION GA17.1206.002 moved Cr Boulton seconded Cr Taylor That Council notes Surfers Paradise Alliance Ltd’s (SPA) bi-annual performance report for the half-year ended 30 June 2017 and its Annual Financial Report for the year ended 30 June 2017.

CARRIED

SURFERS PARADISE ALLIANCE LIMITED

CONTROLLED ENTITY BI-ANNUAL PERFORMANCE REPORT

FOR THE YEAR ENDED 30 JUNE 2017

CONTENTS

SECTION PAGE

CORPORATE GOVERNANCE 1 2

ACTIVITY SUMMARIES & KPI'S 2 3

FINANCIAL MANAGEMENT 3 4

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748th Council Meeting 8 December 2017 Governance & Administration Committee 6 December 2017 Item 2 Surfers Paradise Alliance Ltd - Biannual Performance Review (Continued)

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Attachment 1

SECTION 1 - CORPORATE GOVERNANCE

1.1 VISION

1.2 MISSION

1.3 MEMBERSHIP OF BOARDName of Director Organisation Date AppointedLaura Younger Australian Timeshare and Holiday Ownership Council 16th December 2008Paul Callander Ardent Leisure Theme Parks & Attractions 13th October 2014Gary Baildon Council of the City of Gold Coast 13th April 2016

Lex BellRetired Solicitor and former Councillor of the Council of the City of Gold Coast 10th August 2016

Leschen Smaller Director - Element Business and Accounting Solutions, CPA 10th August 2012Neeraj Chadha Surfers Paradise Marriott Resort & Spa 13th October 2014Tania Cowey McDonald's Licensee Surfers Paradise and Broadbeach 28th September 2015

1.4 BOARD COMPETENCYNumber of Board meetings held during the reporting period 12The Board has a process in place at meetings to manage conflicts of interest including those relating to Yesthe CEO and/or staffThe Board has a process in place to monitor compliance with the Director Code of Conduct YesThe attendance of directors at Board meetings is monitored and no directors have breached the Yesmeeting attendance requirements of the ConstitutionThe Board last reviewed the CEO's performance on August 2016The Board is due to conduct the next review of the CEO's performance on November 2017The Company has a current strategic plan YesThis plan has been endorsed by Council YesWhere the Company does not have such a plan, the Board is arranging for one to be developed by N/AThe Company has an annual business plan YesIf not, the Board is arranging for such plan to be developed and endorsed by N/AThe Board has established an Audit/Risk Committee YesThis Committee last met on 23-October-2017This Committee is due to next meet on January 2018The Board has ensured that documented internal controls are in place YesThe Board has ensured that a policy manual has been compiled that contains policies relating to riskmanagement, workplace health & safety, people management and procurement (as a minimum) YesThe Board is due to review these policies on January 2018The Board has ensured that a risk register has been compiled (comprising both business and workplacehealth & safety risks) YesThe Board last reviewed this register on 23-October-2017The next review of this register is scheduled for 21-December-2017The Board has ensured an employee performance management system is in place YesThe Board has implemented an appropriate board performance review process YesThe next review is due to take place on 21-December-2017The Board acknowledges that it needs to periodically review the effectiveness of the Company's corporategovernance framework. The next review is due to be conducted on 21-December-2017The Board has provided Council with a copy of any observation or similar reports issued to the Company Yesby the Qld Audit Office (or its nominated contractor) - for onforwarding to Council's Audit Committee for consideration

1.5 STAFF DETAILSNumber of FTE positions employed by the entity as at end of reporting period 14.8Amount of annual budget amount allocated to these positions 1,102,093Percentage of annual budget allocated to these positions 25.08%

Surfers Paradise is the heart of the Gold Coast and an international tourist destination where people come to visit and live, to discover a relaxed urban lifestyle that is fun and entertaining, stylish and cultured, on the shores of a world-famous beach.

BUILDING THE FUTURE TODAY“Surfers Paradise Alliance represents the businesses in Surfers Paradise and aims to increase visitation by marketing and promoting the

precinct in conjunction with Tourism and Events Queensland and Gold Coast Tourism. Surfers Paradise Alliance enhances the experience of the precinct for visitors through events, festivals, markets and street entertainment.”

SPA’s mission is to conduct successful and innovative marketing and promotional activities that:

- Enhance the economic prosperity of Surfers Paradise traders- Shape a positive perception of the precinct- Increase visitation from our core markets- Attract additional revenue for the purpose of re-investment.Surfers Paradise Alliance focuses on events and products that provide a quality and consistency of offering across the calendar year to entice holiday makers, day trippers and residents to return to the precinct to re-energise, reconnect with families and friends and rediscover the excitement of Surfers Paradise.

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Attachment 1

SECTION 2 - ACTIVITY SUMMARIES AND KPI's

2.1 SUMMARY OF KEY PROJECTS & ACTIVITIES UNDERTAKEN DURING REVIEW PERIODPlease see the executive report

2.2 SUMMARY OF KEY PROJECTS & ACTIVITIES PLANNED FOR NEXT REVIEW PERIODPlease see the executive report

2.3 STRATEGIC & OPERATIONAL KPI'sPlease see the executive report

2.4 SPECIFIC ISSUES FOR COUNCIL'S CONSIDERATIONPlease see the executive report

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Attachment 1

SECTION 3 - FINANCIAL MANAGEMENT

3.1 OVERVIEW FOR THE YEAR ENDED JUNE 2017

The Surfers Paradise Alliance fully acquitted funds provided by the City of Gold Coast and self-sourced during the period in the delivery of planned activities:

CoGC FundingSpecial Levy $3,280,988Division 7 Council Funding $51,450

Administration $100,513Events $39,766Marketing $6,557Markets $822,657Sponsorship $273,310

The surplus for the Full Year ending 30 June 2017 amounted to $44,568

All ratios are within acceptable limits reflecting the financial position to be strong and positioned to deliver on plans and strategies into the future.

The cash position remains strong and the cash flow forecasts consistently reflect that the organisation is in a solid cash position and can pay liabilities as and when they fall due.

Note:

The financial management component of this reporting template has been prepared as a guide only, for

the use by Gold Coast City Council's controlled entities in their reporting to Council.

Whilst all financial components of this template should be included as a minimum (ie financial overview,

income statement, balance sheet, cash flow, major variances and ratio analysis), the format and layout

may differ to that suggested, and additional detail may be provided where considered relevant or useful.

The Board is responsible for the preparation and presentation of this financial report and the information

contained therein, including establishing and maintaining internal controls relevant to the preparation and

fair presentation of the financial report to ensure that it is free from material misstatement.

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Attachment 1

3.2 STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED JUNE 2017

Yr 2 Yr 3Actual Budget Actual Budget Actual Budget Actual Budget Actual Budget Var Budget Budget

REVENUE

CoGC FundingSpecial Levy $820,247 $820,247 $820,247 $820,247 $820,247 $820,247 $820,247 $820,247 $3,280,988 $3,280,988 $0 $3,343,327 $3,413,537Division 7 Council Funding $0 $0 $51,450 $0 $0 $0 $0 $51,450 $0 $51,450 $0 $0Grants $14,999 $14,999 $10,000 $0 $17,000 $0 $0 $0 $41,999 $14,999 $27,000 $60,000 $60,000

Administration $10,264 $6,600 $36,935 $6,600 $6,157 $6,600 $5,158 $6,600 $58,514 $26,400 $32,114 $26,400 $26,928Events $24,244 $20,000 $5,500 $5,000 $4,611 $0 $5,411 $0 $39,766 $25,000 $14,766 $52,000 $53,040Marketing $1,500 $2,900 $172 $2,900 $4,591 $2,900 $294 $2,900 $6,557 $11,600 -$5,043 $12,000 $12,240Markets $209,116 $217,836 $184,882 $188,399 $226,383 $211,949 $202,276 $211,949 $822,657 $830,133 -$7,476 $880,431 $898,040Sponsorship $64,810 $35,000 $111,400 $142,500 $78,100 $25,000 $19,000 $27,500 $273,310 $230,000 $43,310 $250,500 $255,510

TOTAL REVENUE $1,145,180 $1,117,582 $1,220,586 $1,165,646 $1,157,089 $1,066,696 $1,052,386 $1,069,196 $4,575,241 $4,419,120 $156,121 $4,624,658 $4,719,294

EXPENSES

Events $600,425 $559,315 $1,090,715 $407,365 $183,834 $840,760 $521,322 $485,420 $2,396,296 $2,292,860 $103,436 $2,558,037 $2,609,198Marketing $118,388 $120,173 $114,414 $128,007 $84,880 $98,297 $53,975 $110,767 $371,657 $457,244 -$85,587 $416,259 $424,584Markets Operations $66,898 $66,344 $60,260 $52,826 $75,967 $65,507 $61,463 $67,207 $264,588 $251,884 $12,704 $218,627 $223,000Sponsorship $7,335 $7,500 $3,985 $7,500 $7,080 $7,500 $8,429 $7,500 $26,829 $30,000 -$3,171 $24,000 $24,480Trader Liaison, Management and Education $12,364 $12,300 $11,206 $9,300 $5,320 $9,300 $7,364 $9,300 $36,254 $40,200 -$3,946 $17,200 $17,544Administration $40,830 $39,897 $49,244 $36,695 $22,619 $37,612 $42,350 $31,802 $155,043 $146,006 $9,037 $158,354 $161,521Salary Costs Event Program $266,639 $270,271 $291,332 $266,591 $322,502 $267,395 $324,002 $297,836 $1,204,475 $1,102,093 $102,382 $1,133,404 $1,156,072Office Rent and Parking paid to CoGC $17,503 $17,797 $18,724 $18,380 $19,597 $18,380 $19,597 $18,380 $75,421 $72,937 $2,484 $73,376 $74,844

TOTAL EXPENSES $1,130,382 $1,093,597 $1,639,880 $926,664 $721,799 $1,344,751 $1,038,502 $1,028,212 $4,530,563 $4,393,224 $137,339 $4,599,257 $4,691,242

NET PROFIT/(LOSS) BEFORE INCOME TAX $14,798 $23,985 -$419,294 $238,982 $435,290 -$278,055 $13,884 $40,984 $44,678 $25,896 $18,782 $25,401 $28,052

INCOME TAX EXPENSES $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0 0

NET PROFIT/(LOSS) AFTER INCOME TAX $14,798 $23,985 -$419,294 $238,982 $435,290 -$278,055 $13,884 $40,984 $44,678 $25,896 $18,782 $25,401 $28,052

* categories of reported revenue and expense items will vary from organisation to organisation depending on nature of activities and amounts involved

CURRENT YEAR (Year 1) FORECAST

YTDQTR 1 QTR2 QTR3 QTR4

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Attachment 1

3.3 STATEMENT OF FINANCIAL POSITION

AS AT JUNE 2017

Current reporting period

Same period last year

YTD YTDJune 2017 June 2016

$ $CURRENT ASSETSCash and cash equivalents $686,134 $456,566Receivables $13,274 $64,008Prepayments $54,285 $42,061

$753,693 $562,635

NON-CURRENT ASSETSProperty, plant and equipment $216,505 $162,614

$216,505 $162,614

TOTAL ASSETS $970,198 $725,249

CURRENT LIABILITIESPayables $350,984 $207,259Unearned revenue $88,052 $45,799Employee benefits $55,843 $50,407

$494,879 $303,465

NON-CURRENT LIABILITIESEmployee benefits $17,637 $8,780

$17,637 $8,780

TOTAL LIABILITIES $512,516 $312,245

NET ASSETS $457,682 $413,004

EQUITYRetained earning - opening $413,004 $407,246Retained earnings - current year $44,678 $5,758TOTAL EQUITY $457,682 $413,004

* categories of reported balance sheet items will vary from organisation to organisation

depending on nature of activities and amounts involved

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Attachment 1

3.4 CASH FLOW STATEMENT AND FORECAST


Year 2 Year 3Actual Budget Actual Budget Actual Budget Actual Budget Actual Budget Var Budget Budget

OPENING CASH $456,565 $456,565 $639,491 $141,534 $1,643,653 $433,084 $538,238 $226,617 $456,565 $456,565 $0 $686,134 $683,155

ADD OPERATING RECEIPTSCorporate Revenue $934,865 $918,771 $1,889,644 $902,272 $17,623 $902,272 $923,707 $902,272 $3,765,839 $3,625,586 $140,253 $3,713,595 $3,791,580Event Revenue $27,136 $16,500 $13,765 $5,500 $3,941 $0 $105,134 $0 $149,976 $22,000 $127,976 $78,933 $80,511Marketing Revenue $1,650 $3,190 $1,427 $3,190 $22,250 $3,190 $4,826 $3,190 $30,153 $12,760 $17,393 $9,671 $9,864Sponsorship $51,700 $38,500 $46,750 $195,250 $163,460 $27,500 $18,310 $19,250 $280,220 $280,500 -$280 $255,200 $260,304Beachfront Markets $230,666 $239,620 $210,907 $207,239 $248,953 $233,144 $231,757 $233,144 $922,284 $913,146 $9,137 $969,172 $988,556

TOTAL RECEIPTS $1,246,018 $1,216,580 $2,162,493 $1,313,451 $456,228 $1,166,105 $1,283,733 $1,157,855 $5,148,472 $4,853,992 $294,481 $5,026,571 $5,130,816

LESS OPERATING PAYMENTSPayments to Staff & superannuation $212,059 $255,530 $251,827 $219,661 $253,716 $257,709 $282,739 $220,949 $1,000,342 $953,850 $46,492 $999,712 $1,019,707ATO (GST, PAYG, FBT) $23,685 $106,156 $88,363 -$38,219 $232,952 -$5,777 -$4,213 -$18,309 $340,787 $43,850 $296,937 $428,420 $436,988Payments to Suppliers $747,880 $1,002,066 $807,285 $785,458 $1,074,975 $1,117,780 $857,311 $607,671 $3,487,450 $3,512,976 -$25,525 $3,589,636 $3,661,428Capital Expenditure $79,468 $167,860 $10,857 $55,000 $0 $2,860 $0 $0 $90,325 $225,720 -$135,396 $11,783 $12,018

TOTAL PAYMENTS $1,063,092 $1,531,612 $1,158,331 $1,021,901 $1,561,643 $1,372,572 $1,135,838 $810,311 $4,918,904 $4,736,396 $182,508 $5,029,550 $5,130,141

CLOSING CASH (must equal cash per balance sheet) $639,491 $141,534 $1,643,653 $433,084 $538,238 $226,617 $686,134 $574,161 $686,134 $574,161 $111,973 $683,155 $683,829

* categories of reported cash flow items will vary from organisation to organisation depending on nature of activities and amounts involved

FORECAST


CURRENT YEAR (Year 1)

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3.5 MAJOR VARIANCES ANALYSIS


CategoryYTD

Actual$

YTD Budget

$

Variance$

Variance% Analysis (provide commentary when variance greater than 10% or $10,000)

REVENUESpecial Levy $3,280,988 $3,280,988 $0 0% N/ADivision 7 Council Funding $51,450 $0 $51,450 Christmas Carols support funding from Division 7.Grants $41,999 $14,999 $27,000 180% TEQ funding received on application.Administration $58,514 $26,400 $32,114 122% GCT and Chamber of Commerce support funding - not budgeted.Events $39,766 $25,000 $14,766 59% Events ticket sale exceeded budget.Marketing $6,557 $11,600 -$5,043 -43% Change in strategy resulted in reduced opportunity for revenue raising.Markets $822,657 $830,133 -$7,476 -1% N/ASponsorship $273,310 $230,000 $43,310 19% Revenue received from sponsors exceeded budget.

TOTAL REVENUE $4,575,241 $4,419,120 $156,121 4%EXPENSESEvents $2,396,296 $2,292,860 $103,436 5% Additional expenditure allocated to key events as additional funding achieved.Marketing $371,657 $457,244 -$85,587 -19% Change in strategy resulted in costs saving.Markets Operations $264,588 $251,884 $12,704 5% Additional market security costs as required for risk management.Sponsorship $26,829 $30,000 -$3,171 -11% Efficiencies in costs.Trader Liaison, Management and Education $36,254 $40,200 -$3,946 -10% Efficiencies in costs.Administration $155,043 $146,006 $9,037 6% N/ASalary Costs Event Program $1,204,475 $1,102,093 $102,382 9% Board approved increase in staff establishment due to workload.Office Rent and Parking paid to CoGC $75,421 $72,937 $2,484 3% N/A

TOTAL EXPENSES $4,530,563 $4,393,224 $137,339 3%

NET PROFIT/(LOSS) AFTER INCOME TAX $44,678 $25,896 $18,782 73%


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3.6 RATIO ANALYSIS


Ratio Notes Current reporting date ratio

Comments

Current ratio (current assets/current liabilities)

A measure of short-term liquidity, the current ratio measures an organisation's ability to repay its short-term debt (due in the coming 12 months) by using short-term assets. Ideal current ratio is at least 2:1.

1.52Acceptable level of liquidity to meet liabilities as they become due.

Debt ratio(total liabilities/total assets)

Measures percentage of assets provided by creditors and extent of using gearing. The lower the ratio, the greater the asset protection to creditors.

0.53% Acceptable level of gearing to protect creditors.

Profit margin(operating profit/net sales) Measures net profitability of an organisation 0.98%

Not for profit organisation so not appropriate to have a high profitability ratio.

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City of Gold Coast Governance & Administration C’ttee Corporate Governance Report Surfers Paradise Alliance 1st January 2017 to 30th June 2017

Laura Younger

BA. MBA. GAICD

Board Chair

Mike Winlaw

BBus. MBA

CEO


20 Adopted Report

Attachment 2

Table of Contents 1.0 Chair Executive Summary – November 2017 ............................... 1 2.0 Executive Report ............................................................................ 5 3.0 Strategic KPIs ............................................................................... 11 4.0 Organizational Chart .................................................................... 23 5.0 Moving Forward in FY 2017/18 .................................................. 28

6.0 Attachment 1 - Corporate Governance and Financial Management Report for full year ending 30th June 2017 ........................................... 29


21 Adopted Report

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1.0 Chair - Executive Summary – November 2017 The directions and operations of Surfers Paradise Alliance are clearly aligned to a set of well-defined core objectives and KPIs linked to the Gold Coast Destination Tourism Management Plan and the City of Gold Coast Service Agreement. Following 6 years of ongoing development we are committed to continue with a platform of sustainable and high quality signature events that not only excite and entertain but draw larger audiences’ year on year. We are delivering a balanced events portfolio, aligned to consumer demands and across four pillars of activation being Food, Art, Music and Entertainment thereby ensuring our events calendar defines the Surfers Paradise precinct as the destination of choice for locals, day trippers and overnight holiday makers across our target markets. This calendar of activity supported with vibrant marketing campaigns will continue to entice overnight visitation, day trippers, holiday makers and residents to return to the precinct year on year. We seek to ensure all our events are the destination for an ever growing body of fans. Over the past 12 months we have continued to receive strong trader feedback from all trader segments with the accommodation sector particularly recognizing the momentum being built in growing overnight visitation through SPA Events across the precinct: “The events that you have introduced to the market and the promotion of the area have been tremendous. The results are obvious. Our occupancies are significantly improved in Surfers Paradise and I’m witnessing good trade from day visitors as well.” Bob East CEO Mantra Group. Surfers Paradise Alliance Tier 1 events alone in 2016/17 have delivered (as measured by TEQ preferred consultants IER group) over 68,000 room nights. Surfers Paradise Alliance has, during the reporting period, delivered continuity of leadership and highly positive economic outcomes for precinct traders and businesses leveraging the $3.28million contribution made by Traders and Businesses to the Surfers Paradise special levy to deliver significant gross economic output from Tier 1 events alone. Surfers Paradise Alliance has continued on a journey of best practice Tourism precinct management with the most rigorously transparent picture possible of our results and reporting processes. The Surfers Paradise Alliance foot traffic measurement technology shows that Surfers Paradise precinct is currently averaging over 50,000 unique visitors per day, highlighting the importance of the Surfers Paradise Entertainment Precinct to the vibrant Tourism economy of the Gold Coast.


22 Adopted Report

Attachment 2

Through continuity of strategic direction and capitalizing on a revitalized precinct, Surfers Paradise Alliance has, during the past 6 years, delivered highly positive economic outcomes for precinct traders and businesses. Our goal is to excite our visitors and ensure Surfers Paradise retains its image as the entertainment capital of Queensland and in conjunction with our Traders and Businesses we continue to take major steps forward with Trip Advisor announcing Surfers Paradise Precinct as 2nd Best Beach in Australia in 2017 and Instagram reporting Surfers Paradise as the number one most geotagged location in Queensland and the number two in Australia.

During the reporting period positive public relations and promotion of family friendly activity has further reshaped visitor perception of the precinct as a thriving hub of entertainment, dining and major event activity. Importantly over the past 6 years Surfers Paradise Alliance has been delivering over and above expectations in relation to performance against established Service Agreement KPIs. We view our event calendar as an investment portfolio, the value of which is the sum total of the events within it and the ROI on the investment made to achieve above an industry benchmark of 8 times investment. In 2016/17 Surfers Paradise Alliance Event and Marketing activation has outperformed industry benchmarks and delivered in excess of $43M Gross Value Add and $86M Gross output equivalent to an average of 20 times our investment from these events and campaigns. Importantly we have also ensured that our planning and production of events delivers significant social/cultural value to the residents and visitors to the Gold Coast Local Government area with our Net Promoter scores for our signature events being measured at almost twice the industry average. Marketing Focus The positioning of Surfers Paradise as a fun, family-friendly and safe destination remains a key priority for the Board and staff of Surfers Paradise Alliance. During 2016/17 Surfers Paradise Alliance have capitalized on the marketing potential of a rejuvenated Precinct by partnering with Surfers Paradise Traders to support and promote Surfers Paradise as the entertainment heart of the Gold Coast through innovative campaigns such as the 6th Theme Park, Surfers Paradise Nights and the Chefs of Surfers Paradise. Coupled with an exciting Events calendar conducted by Surfers Paradise Alliance these campaigns have contributed significantly to the upward trend in visitation to the precinct particularly in off peak periods. We thank the Board, Management and Staff of Gold Coast Tourism for their ongoing contribution in delivering such a great result.


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Attachment 2

Beachfront Markets The Beachfront Markets have emerged from a period of instability with renewed support from both traders and stallholders to ensure their success as a significant tourism product and drawcard for over a million people a year.

Research conducted by an external agency provided the Board and management with confidence of the sustained popularity of the Beachfront Markets as the research clearly indicates that Surfers Paradise Beachfront Markets continue to be a strong Surfers Paradise tourism product offering. They have continued to deliver sustained economic benefit to Surfers Paradise Businesses over and above what could be achieved if they did not operate in the Precinct.

The Markets also have strong community and visitor support with 36% of visitors rating their likelihood to recommend to others a 10/10 and over 90% of visitors rating 7/10 or higher.

Moving Forward in 2017/18 As we move forward into 2017/18 we have taken up the challenge set by the City of Gold Coast to extend the depth and breadth of our Cultural Tourism offering and have expanded our Event Product offerings for the 2017/18 financial year with a challenging 305 days of event activation designed to deliver larger than ever audiences into the Gold Coast and particularly the Surfers Paradise Precinct during both peak and off peak periods. We have been very active during the past 12 months in supporting emerging and growing city wide cultural events on the Gold Coast and have secured long term partnerships with the:

• Gold Coast Film Festival and • Gold Coast Music Awards

We will continue to support these events with monetary, in-kind and operational infrastructure to enhance the audience experience and contribute to ensuring their long term viability and sustainability of these key Gold Coast cultural events. We are proud of our record of achievement in delivering additional revenue streams beyond that contributed by Traders through the special area levy delivering $1.298M additional revenue in 2016/17 or 39.5% ABOVE the special levy contribution to the budget. We have set a target for additional revenue for 2017/18 at 38.33% of the special area levy. This target is $947k more than the established City of Gold Coast Service Agreement KPIs. We are committed to working collaboratively with City of Gold Coast in delivering a World Class Tourist destination to play our role in ensuring the long term economic prosperity of the broader Gold Coast economy. Surfers Paradise is at the Heart of it all and the health of the City’s “heart” is vital in ensuring a strong Gold Coast Tourism economy.


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Attachment 2

Research and data collected regarding our performance with respect to Service Agreement KPIs indicate that the event and marketing portfolio continues to deliver strong returns for the traders and businesses of Surfers Paradise. The Board, whom I thank for their time and commitment, wholly endorses the achievements of Surfers Paradise Alliance management and staff, as well as the support of Council officers and Gold Coast Tourism officers whose positive contribution continues to help our organisation to deliver so successfully on its core objectives. Laura Younger Chairperson, Surfers Paradise Alliance


25 Adopted Report

Attachment 2

2.0 Executive Report During the reporting period, the Surfers Paradise Alliance Board and Management performed well against the Core Objectives and KPIs approved by the City of Gold Coast for the 2016/17 financial year. The graph below outlines the overall achievements for FY2015/16 delivering year-on-year increases in event attendance and subsequent economic stimulus, increased revenue streams to support event and marketing activations, with minimal increases in the special levy:

Surfers Paradise Alliance is focused on six core objectives and related KPIs specific to the organisation in supporting the achievement of the above targets being:

1. Enhancing the economic prosperity and sustainability of the Surfers Paradise Precinct, traders and businesses.

Strategic KPIs: 1.1 Deliver a strong events-based marketing strategy which results in an economic value

add to the Precinct equivalent to a minimum of five times the Surfers Paradise Alliance annual gross budget

2010/11Actuals

2011/12Actuals

2012/13Actuals

2013/14Actuals

2014/15Actuals

2015/16Actual

2016/17Actual

2017/18Budget

Total Revenue 3,384,579 3,767,796 4,071,465 4,348,793 4,411,683 4,521,465 4,575,243 4,624,658Special Levy 2,883,216 2,984,129 2,984,129 3,046,796 3,138,200 3,200,964 3,280,988 3,343,327Event Attendance 411,000 931,500 1,333,678 1,382,933 1,595,165 1,700,269 1,728,000 1,856,000

26.26% 36.44%

42.73% 40.58% 41.25% 39.5% 38.33%

3.5% 0% 2.1% 3% 2% 2.5% 1.9%

126.64% 224.5% 236.48%

288.12% 313.69% 320.44% 351.58%

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

Special levy % Increase on prior year

% Increase on attendance over base year of 2010/11

Revenue % over Special Levy

Total Revenue


26 Adopted Report

Attachment 2

2. Shaping a positive public perception of the Precinct Strategic KPIs:

2.1 Visitor survey results indicates a > 90% positive satisfaction rating 2.2 Media reports on the precinct reflect a positive view of the precinct 2.3 Alignment of Surfers Paradise Precinct marketing activities and events and

activations 2.4 Encourage Surfers Paradise Precinct businesses to engage with the Embracing 2018

Quality Service Program

3. Increasing visitation from core markets by expanding tourism product offerings,

events and activations within the Surfers Paradise Precinct. Strategic KPIs:

3.1 Increase the foot traffic flows through the Surfers Paradise Precinct by a minimum of 15% above non-event seasonal averages

3.2 Increase in visitation during off-peak times by 15% as a result of events and activations

3.3 Number of campaigns delivered in conjunction with GCT to promote events and activations through domestic and international networks

3.4 A minimum of 50% of events delivered by Surfers Paradise Alliance are attractive to visitors from outside the city with GCT networks leveraged to market to visitors.

3.5 Deliver a minimum of one whole-of-city event or activation in collaboration with Council’s precinct entities that would be attractive to visitors from outside the city

3.6 Collaborate with Council’s precinct entities to grow existing events and activations limited by precinct boundaries

4. Attracting additional revenue and sponsorship for the purpose of re-investment in

enhancing the Precinct’s visitor experience. Strategic KPIs: 4.1 Generate a cash revenue stream for Surfers Paradise Alliance (via sponsorship and

stakeholder contributions and other revenue sources) to the equivalent of 10% of the special area levy

4.2 Deliver a value in kind revenue stream to events to the equivalent of 2.5% of the special area levy

5. Demonstrating stakeholder and visitor satisfaction of their event experience 5.1 Visitor survey results indicates >90% positive satisfaction rating of businesses,

accommodation providers and event attendees

6. Ensure best practice governance. Strategic KPIs: 6.1 Zero breaches of Surfers Paradise Alliance policy and procedures and an unqualified

annual external audit


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Attachment 2

Surfers Paradise Alliance performance against each of the Core Objectives and Strategic

KPIs for the period 1st July 2015 to 30th June 2016 is detailed below:

1. Core Objective: Enhancing the economic prosperity and sustainability of the Surfers

Paradise Precinct, traders and businesses

Strategic KPIs:

1.1 Deliver a strong events-based marketing strategy which results in an economic value

add to the Precinct equivalent to a minimum of five times the Surfers Paradise

Alliance annual gross budget – Achieved

Supporting Evidence and Data

The following table shows the Tier 1 event attendance and the Gross Economic Output of

these events.


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Attachment 2

Tier 1

Event Performance against Core

Objectives and KPIs

Total Attendance

above seasonal average

2016/17

Days of activation

Economic GVA and (Output)

16/17

Visitor Satisfaction

Levels

16/17

ROI

16/17

1. Beachfront Markets

>504,000 150 $8.8M

($18.5M) 90+% 28

2. Sand Safari

235,000 17 $7.9M

($15.7M) 99.5% 17

3. VIVA SP

80,000 10 $7.8M

($15.3M) 98.6% 24

4. SP LIVE

56,500 4 $4.6M

($9.0M) 99.3% 13

5. NYE

61,000 1 $3.6M

($7.1M) NM 50

6. SeaFire

88,000 1 $2.4M

($4.7M) 92.3% 20

7. Kids Week

60,000 7 $2.3M

($4.6M) 97.3% 22

TOTAL 1,028,500 190 $37.4M

($74.9M) 95+%

19.6

(39.2)


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Attachment 2

The table below for TEQ funded events shows the significant impact of these 3 events alone

on delivering overnight visitation to the Gold Coast.

The 3 TEQ and GCT supported Events have shown good growth as a result of further investment in

the Event experience and the enhanced Marketing to Drive and Interstate

2016

Event Attendance

above seasonal

average

2016

Event Room Nights

Generated for Gold Coast

LGA as measured by IER

Economic Consultants

2017 Viva Surfers Paradise (Commenced 2012)

July Off Peak 85,000 23,700

2017 Sand Safari (Commenced 2012)

February Off Peak 235,000 30,182

2016 Surfers Paradise Live (Commenced 2015)

May Off Peak 56,500 14,210

Total Attendance and Room Nights Generated

for TEQ and GCT supported Events

272,707

Above seasonal

average

68,092

Room nights in

2017 for 3 events

Leveraging Partnerships for Economic Return: Surfers Paradise Alliance has continued to achieve optimum economic benefit from funds expended. The table below shows the results of leveraging and partnering with event partners to both reduce the costs of event activation and to leverage economic return for the Precinct Traders:

The Table following sets out the 2016/17 Event Outcomes and economic value delivered for Tier

2 and Tier 3 Events:


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Attachment 2

TIER 2 and 3

Event Performance against Core

Objectives and KPIs

Total Attendance

above seasonal average

2016/17

Days of activation

Economic Return

GVA

Visitor Satisfaction

Levels

16/17

ROI

16/17

8. ASEC 51,300 4 $1.5M 92.3% 16

9. NetFest 12,000 4 $0.9M NM 90

10. Carols on the Beach

20,000 1 $0.7M NM 4

11. Christmas in SP

25,000 12 $0.7M NM 11

12. NYE Carnival

12,000 6 $0.3M NM 10

13. Magic Millions

8,000 1 $0.3M NM 6

14. Summer of Surf

10,000 3 $0.3M NM 11

15. Infinitus 10,000 3 $0.3M NM 6

16. Bush meets Beach

8,000 4 $0.2M NM 21

17. SIPFest 3,000 2 $0.1M NM 3.3

18. Step Up 3,000 2 $0.1M 94% 2.3

19. GC Food and Wine

1,000 1 <0.1M NM -

20. Oceanway Ride

500 1 <$0.1M NM .6

TOTAL 149,800 44 $5.6M 10.86

TIER 3 21. Mall and

precinct activation

60,000 60 Not assessed NM


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Attachment 2

2. Core Objective: Shaping a positive public perception of the Precinct

Strategic KPIs 2.1 Visitor Survey results indicate a > 90% positive satisfaction rating of businesses

accommodation providers and event attendees – Achieved


Surveys of visitors across all events clearly showed high degrees of satisfaction with events. The

pie charts below shows the overall and individual results of visitor surveys conducted for Tier 1

Events for the period 1st July 2016 to 30th June 2017.

Of 3,000 visitors surveyed across our Tier 1 events 1st July 2016 to 30th June 2017 96% of

respondents said they were very satisfied; only 1% indicated they were somewhat or very

dissatisfied.

Event Satisfaction July 2016 – June 2017


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Attachment 2

Strategic KPIs

2.2 Media reports on the precinct reflect a positive view of the precinct - Achieved

The Surfers Paradise Alliance Media Strategy is targeted towards reimaging the precinct

and media reports on Surfers Paradise continue to reflect a positive view of the precinct.

We continue to focus on positioning Surfers Paradise as a fun, family friendly and safe

entertainment precinct. We continue to open Surfers Paradise stages to the community, including

schools, youth and multicultural groups providing an opportunity for them to showcase their

talents at no cost to the group and subsequently attracting locals into the precinct.

Our Events provided an excellent platform for the promotion of Surfers Paradise to locals,

visitors, national and international audiences.

The table below indicates the reported results of media coverage with respect to Surfers Paradise

Alliance initiatives from 1st July 2016 to 30th June 2017.

MEDIA

KPI 2016/17 Budget/Target

Actual 2016/17

Number of media activities initiated or managed by SPA 57 74

Total publicity value of media coverage $3.8m $5,073,315

Total Number of Gold Coast Media Items mentioning SPA or SPA Activities

660 776

Total number of National media items 33 52

Total number of Regional media items (QLD, NSW, VIC)

165 1,302

Total number of Drive Market event and SPA initiated media items

275 479


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Attachment 2

Strategic KPIs

2.3 Alignment of Surfers Paradise Precinct marketing activities, events and activations –

Achieved via Business Plan and Trader engagement in planning.

2.4 Encourage Surfers Paradise Precinct businesses to engage with the Embracing 2018 Quality Service Program – On track


The graph below clearly shows the support generated by Surfers Paradise Alliance for the Be My Guest Service Awards with a very high percentage of nominations stimulated by active engagement with Surfers Paradise traders

Surfers Paradise Nominations


34 Adopted Report

Attachment 2

3. Core Objective: Increasing visitation from core markets by expanding tourism product

offerings, events and activations within the Surfers Paradise Precinct.

Strategic KPIs

3.1 Through event or promotional activation increase the foot traffic flows across the

precinct by a minimum of 15% above non-event seasonal averages – Achieved

3.2 Increase in visitation during off-peak times by 15% as a result of events and activations - Achieved


Tier 1 Events

2016/2017 Seasonal Average Total Across

Period of Event Difference % above

Viva Surfers Paradise Off Peak

704,229 792,963 88,734 12.6%

Kids Week 313,910 388,192 74,284 23.7%

Christmas and Carols 2016 Peak

961,268 1,065,283 104,015 11%

New Year’s Eve Carnival 2016 Peak

325,000 386,000 61,000 18.8%

Sand Safari 2016 Off Peak 807,620 1,042,626 235,006 29.1%

ASEC 2016 Peak 318,000 369,300 51,300 16.2%

SeaFire 2016 Off Peak 70,323 158,242 87,919 125%

Surfers Paradise LIVE Off Peak 2016

196,151 252,641 56,490 28.8%

Average 3,696,501 4,455,247 640,846 20.6%


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Attachment 2

3.3 Campaigns delivered in conjunction with GCT to promote events and activations

through domestic and international networks – Achieved

GCT have provided monetary and in-kind contribution towards SPA signature events

3.4 A minimum of 50% of events delivered by Surfers Paradise Alliance are attractive to

visitors from outside the city with GCT networks leveraged to market to visitors.

- Achieved

All Surfers Paradise events are showing strong increases in attendance and particularly drive market and overnight visitation as reported above.

3.5 Deliver a minimum of one whole-of-city event or activation in collaboration with Council’s precinct entities that would be attractive to visitors from outside the city - Achieved We have been very active during the past 12 months in supporting emerging and growing city wide cultural events on the Gold Coast and have secured long term partnerships with:

Gold Coast Film Festival Gold Coast Music Awards

We have supported these events with monetary, in-kind and operational infrastructure to enhance the audience experience and thus playing a key role in ensuring their long term viability and sustainability as key Gold Coast cultural festivals. Jointly the entities have agreed to support The Gold Coast Film Festival to provide further support whole of city event activation moving forward from 2018.

3.6 Collaborate with Council’s precinct entities to grow existing events and activations

limited by precinct boundaries – Achieved Regular quarterly meetings are conducted to discuss and plan for cross promotions and ongoing growth

4. Core Objective: Attracting additional revenue and sponsorship for the purpose of re-investment in enhancing the Precinct’s visitor experience.

Strategic KPIs 4.1 Deliver a cash revenue stream to the operations of Surfers Paradise Alliance via

sponsorship and stakeholder contributions and other revenue sources) which is

equivalent to 10% of the Trader levy contribution – Achieved 3 times the

established KPI as per graph below.

4.2 Deliver a value in kind revenue stream to events to the equivalent of 2.5% of the

special area levy – Achieved as per table below Sponsorship/Grants/Commercial Revenue Achieved from 1st July 2016 to 30th June 2017


36 Adopted Report

Attachment 2

ADDITIONAL REVENUE STREAMS

KPI 2016/17 Budget/Target 1st July 2016 to 30 June 2017 Markets Revenue $830,133 $822,657

Cash Sponsorship $ achieved $230,000 $247,500 VIK Sponsorship $ achieved $0 $25,810

Grant and Supplementary Funding Other Grants – TEQ and Div 7 $14,999 $93,449

Other Income – Advertising, Busking, Event Ticketing $63,000 $104,837

% of Trader Levy (Cash) 34.7% 39.5%

5. Core Objective: Demonstrating stakeholder and visitor satisfaction with their event

experience

Strategic KPIs 5.1 Visitor/stakeholder survey results indicate >90% positive satisfaction rating of

businesses, accommodation providers and event attendees – Achieved (See pie chart 2.1 for result verification for visitors)

Trader Engagement – Achieved > 90%

Apart from regular Trader communication forums and updates, the Surfers Paradise

Alliance management group meets regularly with Traders from the five key business

segments in the precinct being:

1. Retailers

2. Accommodation

3. Restaurants and Nightlife

4. Attractions and

5. Corporate and Services (including CoGC and GCT).

During the reporting period Surfers Paradise Alliance continued to host regular

meetings, both formal and informal, to connect with precinct Traders.

Positive results have flowed and we have seen more Traders exploring opportunities to

work collaboratively with Surfers Paradise Alliance to enhance both the reputational

image and the overall prosperity of the precincts economy.


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Attachment 2

The results of the trader satisfaction surveys for major events summarized below

indicate a high degree of satisfaction with SPA Event activations:

TRADER ENGAGEMENT KPI 2016/17 Budget/Target 1st July 2016 to 30 June 2017

Trader Surveys conducted Within 5 days of

completion of all Tier 1 and Tier 2 events

8

Trader Induction Kits Distributed All new traders identified 90

Trader Meetings/Engagement 80 per month 1,326

Trader Forums conducted 2 2

Trader Education Workshops conducted 2 1

92%

8%

Overall Trader Event Satisfaction for 2016-17

Satisfied Dissatisfied


38 Adopted Report

Attachment 2

6. Ensuring best practice governance

Strategic KPI:

6.1 Zero breaches of Surfers Paradise Alliance policy and procedures and an

unqualified annual external audit – Achieved

GOVERNANCE

KPI 2016/17 Budget/Target 1st July 2016 to 30th June 2017

Risk Management Register reviews conducted by the Audit Committee and Board

12 12

Reportable breaches of SPA policies and procedures identified and reported to Board

0 0

Audit Committee Meetings Held 2 3

Board Performance Evaluations completed 11 11

Governance Reports to CoGC - unqualified acceptance

2 2

Board Strategic Planning Session completed 2 1

A current risk register and mitigation strategies are in place and updated annually to reflect existing and emerging risks. The risk register was last reviewed by the Surfers Paradise Alliance Board in October 2017.

To the best of my knowledge all obligations and responsibilities of the Surfers Paradise Alliance Board and Management were adhered to and discharged during the reporting period.


39 Adopted Report

Attachment 2

3.0 Operational KPIs for 2016/17 as reported to the Surfers Paradise Alliance Board at each monthly meeting

3.1 Marketing

MARKETING

KPI 2016/17 Budget/Target 1st July 2016 to 30th June 2017 Marketing Revenue

$11,600 $7,085 Online

Surfersparadise.com - Visits average 35,000 per month | 420,000 per year

782,513

Surfersparadise.com - Unique Visits average 25,000 per month | 300,000 per year

483,854

Surfers Kids Club new subscribers 6,000 Total M’Ship 4,995

Facebook Fans of SP (90,591 Fans)

average 660 new likes per month | 8,000 per annum

9,967

E-Newsletter Distribution 12 per annum 15

3.2 Stakeholder Meetings

STAKEHOLDER AND COMMUNITY ENGAGEMENT MEETINGS KPI 2016/17 Budget/Target 1st July 2016 to 30th June 2017

Chamber of Commerce Network Functions

6 12

GCT and Alliances MOU Review and Planning

4 6

Heart of the City meetings 4 5


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Attachment 2

3.3 Workplace Health and Safety Health and Safety Reporting Scorecard 2016-17

KPI Reporting Frequency

Target /Threshold Actual

Comments

1 Corporate Health and Safety information is communicated to new staff within 2 days of commencement.

Monthly (Jun, Dec)

100% of new staff have completed the corporate WHS induction and questionnaire within 2 days of commencement

100% All new staff from 1st July 2017 have completed WHS induction as part of work induction. All existing staff have received a refresher presentation.

2 Health and Safety Reporting is accurate and communicated to senior management to enable informed decision making each month.

Six Monthly

(Jun, Dec)

100%

(12 per year)

WHS Performance Reports are produced monthly

100% WHS performance report has been completed and presented.

3 Event management plans (including risk assessments) are developed in consultation with key stakeholders where required and are signed and dated by all parties.

Quarterly

(Mar, Jun, Sep, Dec)

100% of event management plans are signed by all parties.

100% All Event Risk management plans have been completed and sign by relevant parties.

4 Workplace Inspections are completed quarterly at the Surfers Paradise Alliance office

Quarterly


100% of inspections are completed each quarter.

100% September 2017 inspection complete.

5 Corrective actions listed in the Corrective Action Register are closed out on time.

Quarterly


80% 80% All items on the corrective action register are complete, with only 20% completed later than the due date.


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EVENTS WORKPLACE HEALTH & SAFETY KPI 2016/17 Budget/Target 1st July 2016 to 30th June 2017

Reportable incidents and accidents occurring 0 1

Documented risk assessments and hazard management completed on events conducted under the auspices of SPA Tier 1 and Tier 2

14 14

Documented risk assessments and hazard management completed on events conducted under the auspices of SPA Tier 2

9 9

Documented risk assessments and hazard management completed on events conducted under the auspices of SPA Tier 3

40+ 10

All incidents and accidents were reported, documented, investigated and corrective actions

taken as required.

3.4 Beachfront Markets Workplace Health and Safety

BEACHFRONT MARKETS WORKPLACE HEALTH & SAFETY KPI 2016/17 Budget/Target 1st July 2016 to 30th June 2017

Reportable incidents and accidents occurring 0 2 Quarterly WH & S third party audits of the Beachfront Markets

4 4

All incidents and accidents were reported, documented, investigated and corrective actions

taken as required. No serious injury was sustained.


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3.5 Operations

OPERATIONS

KPI 2016/17 Budget/Target 1st July 2016 to 30th June 2017 Cleaning Audits Conducted 12 10

The general standard of cleaning is acceptable throughout the precinct with issues of

concern being referred to CoGC officers.

3.6 Human Resources

HUMAN RESOURCES

KPI 2016/17 Budget/Target 1st July 2016 to 30th June 2017 Permanent Staff Hours FTE’s 12.6 13.8 Volunteer Hours N/A 2,408 Staff WH&S incidents/accidents 0 0 Days lost sick leave < 1% FTE days 1.04% Days lost sick leave-FTE Days 30 49


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4.0 Organizational Chart

The approved permanent staff establishment as of the 1 November 2017 is 14.8 FTE’s as per the organizational chart below:


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Report against Planned DTMP Action

1. Stronger Partnerships

DTMP Action Actions Lead Support

1.1 Partnership Agreement

Establish a Gold Coast Tourism Partnership Agreement between GCT, the City

and Precinct Entities and includes:

• a long-term commitment to the partnership

• delineation of clear roles and responsibilities

• shared destination performance outcomes

• comprehensive two-way reporting and accountability

City/GCT

SPA, CSGC,

BA, TEQ,

DTESB, QTIC

SPA has been involved in regular meetings with Council Officers and GCT to review progress against the DTMP and is fulfilling obligations that

are detailed within the plan. The MOU between the entities and GCT has resulted in further recognition of the challenges facing the industry on the

Gold Coast and provided direction and strategy to advance our shared objectives.

4. Quality Service and Innovation Implementation Plan (2015-2016)


4.1 Service Culture Enhance the service culture in the tourism and hospitality industry through the

development and delivery of customer service plan for the Gold Coast as a

legacy outcome of GC2018. (Surfers Paradise Alliance Limited to support

QTIC

City/DTESB

GCT, SPA,

CSGC, BA,


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delivery of plan once developed)

SPA has supported all initiatives and training programs to date with extensive trader communication and promotion of opportunities. The Be My

Guest Program is regularly supported and communicated to traders.

4.7 Night Time Economy (refer to 6.9)

Develop and execute a Night Time Economy Plan addressing safety and security

to sit beside any marketing and place management initiatives. Precinct

managers, police and operators will need to work together to promote positive

community perceptions about the destination. Night Time Economy Plan will

also need to consider outcomes of the Public Domain Improvement Policy

Review (action 6.9)

City

BA, SPA,

CSGC,

Local Area

Committees

SPA has undertaken initiatives in conjunction with Police and Glink to support public education around safety. SPA is represented and is provided

opportunity to input into safety initiatives through the Mayors Safer Suburbs Forum on a quarterly basis.

No action has been taken in conjunction with the City as lead at this stage.

4.8 Place Management Plan

Deliver a dedicated program of place management across key tourism precincts

which include the maintenance of public spaces (parks, gardens, walkways,

toilets), urban renewal, cultural and local activation. Any amendments to be

considered with the outcomes of the Public Domain Improvement Policy

Review (action 6.9)

City

BA, SPA,

CSGC,

Local Area

Committees

SPA contributes to deliver Place Management within the precinct through the Heart of the City Advisory Committee.


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6. Nature and Culture


6.6 Cultural and entertainment

Actively promote and support an increase in cultural and entertainment

activities which can be aligned with key tourism precincts

City

BA/SPA/CSGC

SPA is very supportive and actively engaged with community cultural groups having delivered 111 additional activations with these groups (dance,

music, theatre) during the 2016/76 financial year. These event activations are supported with in-kind operational, infrastructure and financial

support delivering ongoing cultural and entertainment value to the precinct.

6.9 (6.6) Public Domain Improvement Policy

Advocate for the review of the City’s public domain policy in terms of street

entertainment, cultural experiences, outdoor dining and signage through the

Public Domain Improvement Strategy for GC2018 to benefit tourism with

permanent changes.

City / GCT BA/SPA/CS

GC

SPA has contributed to requests for input into various Council initiatives however no consolidated strategy has been forthcoming at this stage.


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7. Events Implementation Plan 2014-2015


7.9 Events Given the wide number of events and limited resources, review the

delineation of roles and responsibilities required to acquire, manage and

deliver events that will drive new visitation to the city. City, GCT,

TEQ

BA, SPA,

CSGC Endorsed Action: Precinct Entities deliver events according to the revised

Service Agreements and KPI’s aligned to the DTMP

SPA event strategy and activations are endorsed by representative trader groups and aligned to the DTMP and Service Agreement KPIs.

The Trader Events committee comprising key business leaders from each of the trader segments represented within the precinct provides a

strong sounding board for both DTMP and SPA strategy and direction. The current committee comprises:

1. Rachel Finlay – Accommodation – Mantra Group

2. Kobi Factor – Accommodation – QT Hotel

2. Tane Thompson – Attractions - Infinity

3. Tania Cowey – Restaurants - McDonalds

4. Simone Jenkins – SPLVA – Elsewhere Bar

5. Arthur DeSnoo – Restaurants and Caterers

6. Juan Uribe – Attractions

7. Lisa Tucker – Attractions - Ripley’s

8. Michelle Thompson Cramp - Retail – Paradise Centre

9. Ben Manns – Commercial – Ticket Mates


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5.0 Moving Forward in FY 2017/18 Surfers Paradise Alliance will continue to innovate and deliver a platform of sustainable

and high-quality signature events that will not only excite and entertain but draw larger

audiences’ year-on-year as our timelines, revenue and quality grows.

Importantly, we continue to ensure that planning and production of events deliver

economic value and social cultural return, contributing to the overall liveability index

within the Gold Coast Local Government Area.

Over the past six years, the Board and Management have worked towards building a

sustainable and robust event calendar that delivers a return on investment across all trader

segments.

We recognise that not all events benefit all trader segments. As an example we know that

activations around children’s activities do not benefit pubs and clubs and as a consequence

have attempted to balance the events portfolio to spread the benefits of event activation as

broadly as possible across trader segment.

To gather more input and create strong trader alignment with our Event strategy the Board

will continue to consult and collaborate with the Surfers Paradise Trader Events Advisory

Committee to ensure alignment across the trader market segments in 2017/18.

As we move forward the Board has directed that the management team take up the

challenge to continue to deliver a strong and sustainable revenue stream over and above the

special levy that allows opportunity for Surfers Paradise Alliance to invest further in

quality and sustainable event activation.

The Surfers Paradise Alliance is committed to delivering a world-class tourism

entertainment precinct renowned for its entertainment offering and a benchmark for

best-practice management and governance.


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6.0 Attachment 1 - Corporate Governance and Financial Management Report for full year ending 30th June 2017

TRACKS-#25580874-v4-CONTROLLED_EN


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748th Council Meeting 8 December 2017 75 Governance & Administration Committee Meeting 6 December 2017 Adopted Report ITEM 3 OFFICE OF THE CHIEF EXECUTIVE OFFICER BROADBEACH ALLIANCE LIMITED – BI-ANNUAL PERFORMANCE REVIEW LG426/1100/-(P8) Refer attachments: Bi-annual Performance Report (Attachment 1) Annual Financial Report (Attachment 2) 1 BASIS FOR CONFIDENTIALITY Not applicable 2 EXECUTIVE SUMMARY Not applicable 3 PURPOSE OF REPORT The purpose of this report is to present the Bi-annual Performance Report for Broadbeach Alliance Limited (BAL) for the six month period ended 30 June 2017. 4 PREVIOUS RESOLUTIONS Governance Administration & Finance Committee 11 May 2017 (minute GA17.0511.003): That Council notes Broadbeach Alliance’s bi-annual performance report for the half-year ended 31 December 2016. 5 DISCUSSION 5.1 Background The City contracts with Broadbeach Alliance Limited (BAL) to manage the provision of marketing, promotional and security patrol activities in the Broadbeach precinct. Council is the sole member of BAL. Consequently, BAL is classified as a “public sector controlled entity” under the Auditor-General Act 2009. The City’s current Service Agreement concludes on 30 June 2019. The Agreement requires BAL to submit performance reports to Council for review on a biannual basis in March and October. BAL’s performance was last reviewed by the Governance Administration & Finance Committee at its meeting on 11 May 2017. 5.2 Review of Performance BAL’s Performance Report submission was received on 25 September (see Attachment 1). The report comprises three components, these being: • Corporate Governance • Alignment with Destination Tourism Management Plan (DTMP) / KPI’s • Financial Management Corporate Governance All governance requirements have been recorded in the performance report. It is considered that BAL is satisfactorily meeting its obligations under the service agreement.

748th Council Meeting 8 December 2017 76 Governance & Administration Committee Meeting 6 December 2017 Adopted Report ITEM 3 (Continued) BROADBEACH ALLIANCE LIMITED – BI-ANNUAL PERFORMANCE REVIEW LG426/1100/-(P8) Board Appointments made by Member’s Representative Following the resignation of Ms Sandra Livingstone of Pacific Fair on 14 June, the Member’s Representative (Council’s CEO) appointed Mr Steven Ihm of Pacific Fair as a replacement director for a period commencing on 4 July and concluding on 30 June 2020. Work Health & Safety A recent interim audit conducted by the regulator identified a range of improvements to the WHS management systems of the four controlled entities to bring them up to the required standard (this essentially being best practice standard for large organisations). Given the criticality of Council retaining its self-insurance licence, Council’s Corporate Safety & Risk Branch is working closely with all four entities to implement the required improvements ahead of the formal external audit in November 2017. Alignment with Destination Tourism Management Plan (DTMP) / KPI’s DTMP Partnership Agreement One of the key elements of the DTMP was to provide for the establishment of a Gold Coast Tourism Partnership Agreement between Gold Coast Tourism, the City and Precinct Entities. The Partnership Agreement, which was recently signed by all parties, provides for: • a long-term commitment to the partnership • delineation of clear roles and responsibilities • shared destination performance outcomes • comprehensive two-way reporting and accountability

City-wide Event Coordination The CEO’s of the three precinct entities (and the Arts Centre) meet with the Executive Officer City Events on a regular basis to collaborate and coordinate with regards to the nature and timing of events held across the city. The last meeting was held on 29 August 2017. The next meeting is scheduled for December 2017. Operational KPI’s BAL’s performance against agreed KPI’s is detailed in Attachment 1. The Coordinator Tourism has reviewed BAL’s performance against the agreed KPI’s and advises as follows:

BAL’s performance against KPI’s for the six month period ending 30 June 2017 is consistent with the objectives of the DTMP and Broadbeach Alliance. A number of KPI’s have been exceeded, in particular, visitor satisfaction, economic value and value in kind revenue. BAL is performing well in regards to major events such as Blues on Broadbeach and the Country Music Festival. The Superhero weekend and Jazz Festival are becoming more successful and have significant opportunity to grow. Work still needs to occur in relation to the KPI seeking the entities working together to stage a City wide event. The intention of the KPI is to see the entities combine to grow a significant scale event over time that would attract new visitation to the city. Both the Tourism and Events team within Economic Development are working with the entities to provide support and a clear direction in regards to this and it is expected further progress will be provided in the next bi-annual report.

748th Council Meeting 8 December 2017 77 Governance & Administration Committee Meeting 6 December 2017 Adopted Report ITEM 3 (Continued) BROADBEACH ALLIANCE LIMITED – BI-ANNUAL PERFORMANCE REVIEW LG426/1100/-(P8) Financial Management BAL’s financial performance is detailed in Attachment 1. The Corporate Financial Accountant has reviewed the information provided by BAL and advised that “there are no major financial issues to note”.

The Audit Committee reviewed BAL’s Annual Financial Report at its meeting on 9 October. A copy of the Annual Financial Report is attached for noting (see Attachment 2). The Queensland Audit Office has provided an opinion that BAL’s Annual Financial Report gives a true and fair view of the Company’s financial position and performance and complies with the Australian Accounting Standards and Corporations Regulations 2001. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Gold Coast 2020 2.0 Prosperity built on a strong diverse economy What we want to see by 2020 2.5 We are a globally recognised tourism destination - our city attracts visitors from all over the world Key strategy: Implement the Economic Development Strategy to build and

create a sustainable local, national and international tourism market for the city.

Key programs of work: Develop and implement a citywide Destination Management

Plan. Work with Gold Coast Tourism to promote the city as a world-class tourism destination through a range of marketing programs and activities.

Operational Plan There are no specific strategies relating to BAL contained in the 2016-17 or 2017-18 Operational Plans. 7 GOLD COAST 2018 COMMONWEALTH GAME IMPACT Not applicable 8 FUNDING AND RESOURCING REQUIREMENTS Not applicable 9 RISK MANAGEMENT The funding of BAL does not relate directly to any of the Corporate Risks. However it does relate to Directorate Risk No. CO000410 below, which is currently rated as Low 48 under Council’s Risk Management methodology.

748th Council Meeting 8 December 2017 78 Governance & Administration Committee Meeting 6 December 2017 Adopted Report ITEM 3 (Continued) BROADBEACH ALLIANCE LIMITED – BI-ANNUAL PERFORMANCE REVIEW LG426/1100/-(P8)

Adverse impact on Council through inappropriate/illegal actions of any of Council's controlled entities for which the OCEO is responsible (ie, Gold Coast Arts Centre Pty Ltd, Surfers Paradise Alliance Ltd, Broadbeach Alliance Ltd and Connecting Southern Gold Coast Ltd)

The bi-annual performance review process and the appointment of a Councillor to each of the boards are mitigations for this risk. 10 STATUTORY MATTERS Corporations Act 2001

BAL is registered with the Australian Securities & Investments Commission as a company limited by guarantee. Its operations are governed by the Corporations Act 2001. Auditor-General Act 2009

Under the Auditor-General Act 2009, BAL is classified as a “public sector controlled entity”. Section 5 of the Act states:

5 What is a controlled entity (1) An entity is a controlled entity if it is subject to the control of 1 or more of the following (the controlling entity)—

(a) a department; (b) a local government; (c) a statutory body; (d) a GOC; (e) another entity subject to the control of 1 or more of the entities mentioned in paragraphs (a) to (d).

(2) In this section—control means the capacity of an entity to dominate decision-making, directly or indirectly, in relation to the financial and operating policies of another entity so as to enable the other entity to operate with it in pursuing the objectives of the controlling entity.

With respect to the City’s “control” of BAL, the City:

• is the sole member of the Company and therefore has control over its constitution as well as the appointment of the directors and chairperson

• has control over the Company’s specific role and responsibilities via the service agreement

• provides annual funding in accordance with the service agreement • regularly reviews the Company’s performance against the service agreement including

the strategic direction of the Company. The Act requires that Queensland Audit Office be appointed as the Company’s Auditor. Compensation & Rehabilitation Act 2003 BAL is also classified as a “Related Body Corporate” of the City under this Act and the Corporations Act 2001 and, as such, the City must provide workers’ compensation coverage to BAL. As Council self-insures for workers compensation, like Council, BAL must maintain a work health and safety management system that is compliant with the National Self-insurer OHS Management System Audit Tool (NAT 3- 2014) – and forms part of the external audit of Council’s OHS Management System by the regulator.

748th Council Meeting 8 December 2017 79 Governance & Administration Committee Meeting 6 December 2017 Adopted Report ITEM 3 (Continued) BROADBEACH ALLIANCE LIMITED – BI-ANNUAL PERFORMANCE REVIEW LG426/1100/-(P8) 11 COUNCIL POLICIES Not applicable 12 DELEGATIONS The Council has delegated authority to the Chief Executive Officer to determine all matters within the responsibility of Council as the sole member of the Company – with the exception of the determination of annual funding and review of the entity’s performance. 13 COORDINATION & CONSULTATION Name and/or Title of the Stakeholder Consulted


Is the Stakeholder Satisfied With Content of Report and Recommendations

Joanne Cullen, Corporate Finance Accountant

OCOO (Corp Finance)

Yes

Scott Krueger, Coordinator Tourism EDMP Yes 14 STAKEHOLDER IMPACTS The BAL Board and Council, being the sole Member of the Company, are the key stakeholders in terms of BAL’s performance in the achievement of the objectives detailed in BAL’s Constitution, the obligations detailed in its service agreement with Council and the agreed KPI’s. The BAL Board is broadly representative of the stakeholders in the Broadbeach precinct. BAL works cooperatively and in in consultation with Gold Coast Tourism and the other precinct entities in accordance with the new Destination Tourism Management Plan Partnership Agreement. 15 TIMING The next bi-annual performance review is due in March 2018 (for the six month period ending 31 December 2017). 16 CONCLUSION It is considered that BAL is satisfactorily performing its roles and responsibilities under the Service Agreement and meeting the objects for which it was established. The Queensland Audit Office has provided an unqualified audit opinion in relation to BAL’s Annual Financial Report.

748th Council Meeting 8 December 2017 80 Governance & Administration Committee Meeting 6 December 2017 Adopted Report ITEM 3 (Continued) BROADBEACH ALLIANCE LIMITED – BI-ANNUAL PERFORMANCE REVIEW LG426/1100/-(P8) 17 RECOMMENDATION It is recommended that Council resolves as follows: That Council notes Broadbeach Alliance’s bi-annual performance report for the half-year ended 30 June 2017 and its Annual Financial Report for the year ended 30 June 2017. Author: Authorised by: Stephen Bowden Dale Dickson Coordinator Controlled Entities & Community Grants Chief Executive Officer 17 November 2017 Document # 64528977 COMMITTEE RECOMMENDATION GA17.1206.003 moved Cr Taylor seconded Cr Boulton That Council notes Broadbeach Alliance’s bi-annual performance report for the half-year ended 30 June 2017 and its Annual Financial Report for the year ended 30 June 2017.

CARRIED

CONTROLLED ENTITY BI-ANNUAL PERFORMANCE REPORT

For the Half Year Ending 30th June 2017 CONTENTS SECTION Corporate Governance 1 Activities and KPI’s 2 Financial Management 3.1 Statement Comp Income 3.2 Statement Financial Position 3.3 Cash Flow 3.4 Variances 3.5 Ratios 3.6

748th Council Meeting 8 December 2017 Governance & Administration Committee 6 December 2017 Item 3 Broadbeach Alliance Ltd - Biannual Performance Review (Continued)

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SECTION 1 – CORPORATE GOVERNANCE

1.1 VISION

Delivering a world class experience in a world class destination. 1.2 MISSION We will deliver to our stakeholders and the industry by promoting and shaping Broadbeach as not just a destination but also an experience - promoting sustainable economic growth throughout the precinct. 1.3 MEMBERSHIP OF BOARD MEMBERSHIP OF BOARD from 1st July 2016 Darryl Kelly Chairman Kelly Developments 1st July 2016 Mark Witheriff Deputy Chair Knight Frank 1st July 2016 Brad Dickfos Audit Chair Dickfos Dunn 1st July 2016 Sandra Livingstone Director AMP – Pacific Fair 1st July 2016 Peter Graham Director Montrose Group 5th Nov 2014 Geoffrey Hogg Director The Star 1st April 2015 Cr Paul Taylor Director Councillor Division 10 13th Aug 2012 1.4 BOARD COMPETENCY

Number of Board meetings held during the reporting period 5

The Board has a process in place at meetings to manage conflicts of interest including those relating to the CEO and/or staff

Yes

The Board has a process in place to monitor compliance with the Director Code of Conduct

Yes

The attendance of directors at Board meetings is monitored and no directors have breached the meeting attendance requirements of the Constitution

Yes

The Board last reviewed the CEO's performance on Sept 2016

The Board is due to conduct the next review of the CEO's performance on Aug 2017

The Company has a current strategic plan Yes

This plan has been endorsed by Council Yes

If not, the Board is arranging for one to be developed by

The Company has an annual business plan Yes

If not, the Board is arranging for such plan to be developed and endorsed by

The Board has established an Audit/Risk Committee Yes

This Committee last met on June 2017

This Committee is due to next meet on Sept 2017

The Board has ensured that documented internal controls are in place Yes

The Board has ensured that a policy manual has been compiled that contains policies relating to risk management, workplace health & safety, people management and procurement (as a minimum)

Yes

The Board is due to review these policies on Mar 2018

The Board has ensured that a risk register has been compiled (comprising both business and workplace health & safety risks)

Yes


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The Board last reviewed this register on May 2017

The next review of this register is scheduled for Nov 2017

The Board has ensured an employee performance management system is in place Yes

The Board has implemented an appropriate board performance review process Yes

The next review is due to take place on Sept 2017

The Board acknowledges that it needs to periodically review the effectiveness of the Company's corporate governance framework. The next review is due to be conducted on

Mar 2018

The Board has provided Council with a copy of any observation or similar reports issued to the Company by the Qld Audit Office (or its nominated contractor) – and forwarding to Council's Audit Committee for consideration

Yes

1.5 STAFF DETAILS Number of FTE positions employed by the entity as at end of reporting period 7

Actual Budget Amount of annual budget amount allocated to these positions 733,413 733,849 Percentage of annual budget allocated to these positions 22.35% 23.55%


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SECTION 2 – ACTIVITY SUMMARIES AND KPI’s

2.1 SUMMARY OF KEY PROJECTS & ACTIVITIES UNDERTAKEN DURING REVIEW PERIOD

During the reporting period, Broadbeach Alliance has delivered two of our three major festivals; the rebranded Gold Coast Superhero Weekend (GCSW) in April and Blues on Broadbeach in May. The Broadbeach Country Music Festival, traditionally held on the third weekend of June, was moved to the last weekend of July to enable the team to give the emerging Country Music Festival the time it deserved to allow it to grow to the impact and size of Blues in a short period of time.

Gold Coast Superhero Weekend – April

The rebranding of this festival from QPOW – Queensland Pop Culture Week to Gold Coast Superhero Weekend was deliberate to enable us to activate within other divisions of the city wishing to host their own unique event in the lead up or during the festival. Also it will enable us sit under the planned Gold Coast Film Collective which will see the GC Film Festival, City Events, Economic Development, Surfers Paradise Alliance and Connecting Southern Gold Coast all come together to develop a whole of city event which will support one of our major industries – the Film Industry.

This year to extend our reach into

our desired demographic we

contracted Cosplay Ambassadors

and Social Media Influencers

‘THOR of OZ’ and ‘Infamous

Harley Quinn.’ Combined they

have in-excess of 300,000

followers. During the Gold Coast

Superhero Weekend they

generated 200,000 specific

impressions from their digital

channels of the event and the

destination. This was a hugely

successful marketing strategy

generating significant exposure

for the Gold Coast, because every

impression mentioned the Gold

Coast.

The event is anchored around the Supanova Comic Con held at the Gold Coast Convention and Exhibition Centre from Thursday to Sunday. Attracting 27,400 devoted Cosplayers from across Australia in 2017, the event was so well attended that accommodation properties reported stronger accommodation bookings for GCSW than Easter the previous weekend as commented on by GCT CEO Martin Winter.

Added to this, the Gold Coast Film Festival hosted several viewings of Superhero movies which we then leveraged off with all weekend activations, for example - Marvel Character Meet and Greets in shopping


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centres, Star Wars Immersive Zone, and of course the ever-popular Superhero Parade attracting a viewing audience in-excess of 7,500.

The crowds for the route of the parade were substantial from all down Queensland Avenue…

along Surf Parade…

and around the corner Victoria Avenue and into Victoria Park.


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Gold Coast Superhero Weekend Accommodation Bookings

Friday 21st Saturday 22nd Sunday 23rd

Bel Air on Broadbeach 92% 89% 63%

Ocean Royale 95% 95% 95%

Boulevard Towers 87% 87% 87%

Island Beach Resort 100% 100% 100%

Tropicana Motel 100% 100% 100%

The Wave 95% 100% 97%

Ultra-Broadbeach 100% 100% 100%

Aruba Beach Resort 100% 100% 100%

Capricornia Apartments 100% 100% 100%

Neptune Resort 100% 100% 100%

Broadbeach Travel Inn Apartments 100% 100% 100%

San Mateo 100% 100% 100%

Jubilee Views 100% 100% 90%

Aruba Sands Resort 95% 95% 80%

Phoenician 100% 100% 70%

Aruba Surf Resort 100% 100% 76%

Meriton Serviced Apartments 89.38% 95.8% 88.4%

Mantra Group 81% 81% 81%

Mantra Sierra Grand 92% 97% 95%

Our primary goal with this weekend is to create an event which is all things superheroes and Popular Culture that is embraced across the Gold Coast which will put it on the Cosplayers radar as the must attend event for the year. Cosplayers are made to feel welcome in our city and completely at ease in their alter ego costume/s which they have had a role in constructing, in most cases with four or more costume changes over the weekend. We want them to feel they can enjoy what the city offers as their alter ego which will enable us to create our very own citywide festival, already a significant tourism product that will grow over time to have the significance of the ‘San Diego Comic Con’, attracting 280,000 over ten days where all major Superhero films/games are launched. This could happen on the Gold Coast.

It is the intention of BAL to significantly invest in this festival in 2018, as demonstrated in 2017 we see it has strong growth potential especially into the interstate and Asian market, as long as we deliver exceptional Pop Culture experiences throughout the precinct and the city.

Working toward meeting a significant KPI – the entities working together to stage a city-wide event.

As mentioned earlier we are collaborating with City Events, Economic Development, GC Film Festival and the other entities to create an event long term which will not only support the Film/Movie industry in our city but also be a strong generator of room nights.

Additionally, as mentioned in the past hosting the Gold Coasts very own Zombie Parade, has been picked up by the NightQuarter at Helensvale in Cr William Owen Jones division. In its first year, it was very successful and they look forward to growing the event in years to come in conjunction with Study Gold Coast.

It should be noted due to our budget for this event, a Tourism Value report has not been undertaken,


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Blues on Broadbeach – Driven by Frizelles - May

Once again Blues on Broadbeach has demonstrated the huge event it is in 2017, nothing tells the story like the two tables below.


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For the first time since 2008, we had a wash out on the Friday of the festival, requiring us to close headline stages including Surf Parade and Griffith Stage (Victoria Park) due to the conditions. Given that, our attendance and resulting numbers have held up well.

How did we get to the attendance numbers?

In the past, we have used the same counting system as used in Surfers Paradise and Southport. We were all having difficulty with the counting methodology with Movvo – in our case no guarantees of accuracy in the lead up to the festivals. We were also advised by council that they were putting in a counting system for the Commonwealth Games which we ultimately will have to use.

As a result, and after extensive investigation with TEQ and Strategic Facts, it was decided we would use the tried and tested Grid Counting Method. Basically, a system whereby the precinct is broken into grids and the grids are counted hourly by Strategic Facts. This, combined with a great deal of other data collected by Strategic Facts, meant they could establish the attendance numbers.

In some sense, we were taking a huge gamble, what if the numbers were greatly reduced? It would mean all our economic impacts and reporting on the festival would have been flawed. However, what in fact it has demonstrated by the numbers having very little variance is how conservative our quoted numbers were in the past and with us reducing the Movvo number by 25% and reporting on those numbers, the grid counting is proving to be an extremely effective tool in establishing festival numbers.

If we look back on our funding history, what is demonstrated quite clearly is when we get significant funding increases the levels of attendance and resulting Economic Impacts increase on average 30%. The 2017 festival outcomes were, similar to 2016, due mainly as a result of the budgets being almost the same. There were no additional funds for added wow factor.


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Our next boost in attendance and economic impact for Blues will come with increased funds allocated to the festival; our next step will be a headliner stage in Kurrawa Park. Work has commenced on sourcing sponsorship for this next phase of our growth.

Striving for transparency

To reiterate, the establishment of all the data in the above charts has been compiled by third parties, Broadbeach Alliance have not been involved, except the collection of postcodes and email addresses during the festival. These are then provided to Strategic Facts who send a Survey Monkey to garner all the information they require to establish the above figures. The process is completely transparent and one which our board, TEQ and council can have complete faith in.

Blues on Broadbeach Growth 2016 - 2017

2017 2016 % Increase/(Decrease)

Attendees 161,804 166,231 (2.6%)

Unique Visitors 56,130 56,869 (1.3%)

Economic Impact $23.8m $23m 3.4%

Investment $1.37m $1.39m (1.4%)

Visitor Nights 135,243 130,424 3.7%

ROI 1637% 1555% 82%

Stakeholders

Every stakeholder who contributes to the cost of staging performers in their venues have seen great returns on their investments. It is fair to say this festival now impacts not only Broadbeach but the coastal strip in general. All these people need somewhere to stay and we can’t fit them all into Broadbeach, of the 135,000 room nights generated during the festival, there were an estimated 32,180 room nights occupied outside Broadbeach along the coastal strip with Surfers Paradise and Southport accommodation properties being the main beneficiaries, i.e. along the tram line.

Risk and Safety

Due to the world we now live in and the sheer size of the festival, a great deal of work was undertaken with QPS and our festival Risk Consultants on terror mittigation, resulting in an additional expenditure of $66,000 in this area alone. Work is underway to consider re programming the festival so we can disappate the crowd more, thus minimising any areas of risk associated with public safety. Having said this, QPS and our Risk Managers were very pleased with the 2017 plans and roll out, with absolutely no issues to report, incredible given the size of the crowd. We sincerely thank councils contribution that was made late last year to support Blues in this area until 2020, without this support it would have been challenging to deliver a safe festival, enjoyed by the tens of thousands, who attended.


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Attachment 1

Surf Parade taken by a drone just before Ian Moss on Sunday

It would be remiss of me not to take this opportunity to mention my incredible team of six full time and two part-time staff who faced some challenges due to the severe weather and large numbers. To deliver what is truly now the jewel in the cities crown from a tourism point of view, with absolutely no issues and or extensive impact to the precinct that was progressively closed-down from Thursday morning and re-opened Monday morning at 4am is remarkable.

A new Initiative - Blues on Broadbeach and the Memphis Blues Festival collaboration

To continue to drive Blues and to enhance its international brand we are working on a collaboration with the Memphis Blues Festival - USA.

Over the past twelve months we have been in discussions with the Memphis Tourism Authority regarding aligning Blues on Broadbeach with the Memphis Blues Festival. As you may be aware Memphis is the home of Blues. We have now reached the stage of locking down details, such as performances at reciprocal festivals, local activations with food offerings, competition opportunities with mutual travel offerings for attendees and of course significant marketing and promotional opportunities. Gold Coast Tourism has been a party to the initiative and are fully supportive.

Broadbeach Country Music Festival – where the Country meets the Coast

With the Country Music Festival now six weeks after the Blues Festival the team had time to give the festival the attention it deserves. The results from this fast-growing festival will be outlined in our next Governance report to council.


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Attachment 1

Sponsorship confirmed

BAL strives towards growing each of our events and festivals on a year by year basis. Securing corporate sponsorship remains a high priority to achieve this goal. In the last six months we have placed considerable emphasis on securing three to four-year agreements for event stability and longevity. The below table shows our confirmed sponsorship status to 2020, totalling over $1.1m. Further sponsorship is also under negotiation.

Sponsorship for 2016 – 2020

Sponsor Event Timing Status

TEQ Blues 2016-2018 Confirmed

TEQ CMF 2017-2019 Confirmed

City of Gold Coast Blues CMF

2017 - 2020 2017 – 2020

Confirmed Confirmed

Frizelles Blues 2016 - 2018 Confirmed

Griffith University Blues 2016 - 2018 Confirmed

The Star Blues & CMF 2016 - 2018 2018 - 2020

Confirmed – launch Confirmed – Headline Act

Wiltshire Family Law Carols CMF

2015 - 2017 2017 - 2020

Confirmed Proposal submitted

So important is sponsorship to Broadbeach Alliance we have appointed a Partnerships Manager to not only service our sponsors so we ensure we are delivering value for money, and we continue to meet their expectations, she will also be responsible for supersizing those existing sponsors investments as well as generating new sponsors.

The key of our ability to continue to deliver the successful events and festivals is the level of in-kind and unpaid media value we receive. For 2016-2017, the below results are largely just for Blues, and have been audited by the QAO as part of the audit process:

In kind support $749,386

Unpaid media value $4.8m


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2.2 SUMMARY OF KEY PROJECTS & ACTIVITIES PLANNED FOR NEXT REVIEW PERIOD

Broadbeach Country Music Festival

The Broadbeach Country Music Festival has been moved to the 28th – 30th July 2017. As part of this process the board decided to increase the spending for the festival to give it a real boost in our committed objective of having this festival the size of Blues in a few short years. This resulted in us being able to implement several new initiatives which will show a clear demonstration that with additional funds the resulting impact will be significant.

For the first time, we have an international act - AMERICA headlining the festival. We will also be increasing our stages from two to three main stages with the implementation of the Kurrawa Park stage, and supporting venues in hosting stages which will enhance the attendees experience whilst on site resulting in additional room nights being booked before they depart the 2017 festival.

Kurrawa Big Top & stage

We look forward to reporting to you the success of this festival in our next report – the results for the 2017 festival were exceptional.


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Broadbeach Opera in the Park

Due to the Aida Opera on the Beach it was decided not to compete with this major city event and our Opera for this year has been deferred until the October long weekend next year.

Broadbeach Christmas Carols

Marina Prior will once again headline the Carols and will be supported by Martin Crewes, the Boogie Woogies, dancers, choirs, orchestra, Santa and many more. A real family favourite, with children’s activities commencing early afternoon culminating with capacity crowds in Kurrawa for the Carols.


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Other activities being undertaken:

Due to the sheer size and complexity of Blues on Broadbeach and the newly emerging Broadbeach Country Music Festival we find that what in the past has been reasonably quiet time post festivals we are all extremely busy with organising next year’s events.

We understand the responsibility we have not only for Broadbeach but our city to ensure that there is no ‘hangover’ post Commonwealth Games and in Broadbeach we are ensuring we are doing everything we can to deliver a strong array of festivals commencing two weeks post games.

In Summary

Did we meet our KPI’s as a result of the outcomes of our hard work and dedication to Broadbeach and our city – absolutely! Highlighted below are the actual results of meeting our KPI’s.

Recognition must be given to our Chairman Darryl Kelly and the board for their guidance and utter commitment to the team and the outcomes we strive to deliver. And of course, none of this would have been possible without the commitment of council officers to all that we do and the ongoing belief and support of the whole council, a sincere thank you.


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2.3 KEY PERFORMANCE INDICATORS AS OUTLINED IN THE 2016 SERVICE AGREEMENT – and responded to in the QAO Audit Financial Report as at June 2017

1. Deliver a strong events-based marketing strategy which results in an economic value add to the Broadbeach Precinct equivalent to a minimum of five times the BAL annual gross budget.

The events delivered over the 2016/2017 Financial Year are listed below. The Broadbeach Country Music Festival date was shifted from June to July, resulting in no festival for this Financial Year, and will be reported on in 2017/2018.

Economic Impact

Month Event Attendance $ Impact

May-17 Blues on Broadbeach 161,804* $28 million

Apr-17 Superhero Weekend 7,500 $750,000 est.

Dec-16 Broadbeach Carols 4,000 $100,000 est.

Sep-16 Broadbeach Opera 3,000 $180,000 est.

Aug-16 Broadbeach Jazz Festival 10,000 $1.3 million est.

Total 186,304 $30,330,000 est.

*attendance established from qualified and professional external firm

2016/2017 Budget $2,613,956 Result Achieved: $30,330,000 >eleven times budget

2. Visitor survey results indicates >90% positive satisfaction rating

Result: >97% satisfaction achieved

3. Media reports on the precinct reflect a positive view of the precinct

There was significant positive news in both traditional media and online for Broadbeach commenting on Blues on Broadbeach, Broadbeach Country Music Festival, Broadbeach Jazz Weekend, Opera in the Park, Broadbeach Carols and various stories regarding development within the precinct.

4. Alignment of Broadbeach Precinct marketing activities and events and activations

All activation in the precinct aligns with the DTMP and the objectives of Broadbeach Alliance.

5. Encourage Broadbeach Precinct businesses to engage with the Embracing 2018 Quality Service Program

We actively encourage our precinct business to engage with Embracing 2018 quality service,

some 60% of our stakeholders have training procedures in place.

6. Increase the foot traffic flows through the Broadbeach Precinct by a minimum of 15% above non-event seasonal averages

Data not collected during period.

7. Increase in visitation during off-peak times by 15% as a result of events and activations

Blues on Broadbeach experienced an increase of more than 30% over off-peak times. The Jazz

Festival experienced an increase of more than 5%, with trying circumstances given the closure of

Surf Parade for roadworks. Opera experienced an increase of greater than 10%.


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8. Number of campaigns delivered in conjunction with GCT to promote events and activations through domestic and international networks

In conjunction with Gold Coast Tourism, Blues on Broadbeach was part of a major campaign “It’s

Live on the Gold Coast”, reaching New Zealand, New South Wales and Victorian markets.

The Gold Coast Superhero was digitally promoted by Gold Coast Tourism.

9. A minimum of 50% of events delivered by BAL are attractive to visitors from outside the city with GCT networks leveraged to market to visitors

Blues on Broadbeach, the Gold Coast Superhero Weekend and the Broadbeach Jazz Festival are leveraged to visitors from outside the city, while Opera and Christmas are for locals.

10. Deliver a minimum of one whole-of-city event or activation in collaboration with Council's precinct entities that would be attractive to visitors from outside the city

The Gold Coast Superhero Weekend collaborates with the Gold Coast Film Festival to draw

visitors from outside the city.

11. Collaborate with Council's precinct entities to grow existing events and activations limited by precinct boundaries

Quarterly meetings held with Alliances and cross-team support and collaboration throughout

period as well as regular LTO meetings with GCT.

12. Generate a cash revenue stream for BAL (via sponsorship and stakeholder contributions and other revenue sources) to the equivalent of 10% of the special area levy

The table below shows the achievements for sponsorship and stakeholder contributions.

13. Deliver a value in-kind revenue stream to events to the equivalent of 2.5% of the special area levy

The table below shows the achievements for in-kind revenue streams.

14. Visitor survey results indicates >90% positive satisfaction rating of businesses, accommodation providers and event attendees.

Independent surveys taken over the festival periods indicate the below satisfaction rating:

Visitor Satisfaction >97% Stakeholder Satisfaction >97%

15. Zero breaches of BAL policy and procedures and an unqualified annual external audit.

There were zero breaches of BAL policy and procedures during the period and an unqualified

Audit Report for June 2016 financial accounts was issued.

SECTION 3 - FINANCIAL MANAGEMENT

KPI ($) KPI (%) Achievement ($) Achievement (%)

Sponsorship 261,396 10 615,519 236%

In-kind 65,349 2.5 720,658 1046%


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Attachment 1

3.1 OVERVIEW FOR THE HALF YEAR ENDED JUNE 2017 The Board of Broadbeach Alliance Limited has set a strong direction, and maintains a clear oversight and support of the Management and team resulting in outstanding outcomes and an organisation which is sustainable into the future. Broadbeach Alliance remains in a strong financial position both for the 2016/2017 financial year, and headed into the future. On an annual basis, the Board reviews the businesses rigorous internal controls and policies and procedures to ensure continuous improvement. On a monthly basis, the organisations financials are presented to the Audit Committee prior to each Board Meeting. The Audit Committee reviews the monthly financial report, which is prepared by Management, ensuring that the Company is tracking in accordance with the approved budget, meeting its financial and statutory obligations and reporting any changes or amendments from the budget. The report provides the committee a true reflection of the state of the business prior to presenting to the Board. An Audit report is then provided to the Board at every Board meeting, and approved subject to no issues being identified. As Chair of Broadbeach Alliance, I am a member of the Audit Committee. During the review period, the Broadbeach Country Music Festival date was moved from June 2017 to July 2017, resulting in a timing difference in the expenditure of funds from one financial year to the next, and a larger surplus than expected for the 2017 financial year. All other revenue and expenditure was in accordance with budgeted expectations. Broadbeach Alliance continues to manage and operate the business with strong oversight on financials and regular due diligence in meeting key financial and governance objectives.

Darryl Kelly Chair Broadbeach Alliance Limited


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Attachment 1

3.2 STATEMENT OF COMPREHENSIVE INCOME

For the Year Ending 30 June 2017

Yr 2

Actual Budget Actual Budget Actual Budget Actual Budget Actual Budget Var

Budget 2017-

2018

REVENUE By major revenue types or activity* eg:Sale of goods - - - - - - 55,946 50,000 55,946 50,000 5,946 70,000Grants 653,489 653,489 1,306,978 653,489 - 653,489 653,489 653,489 2,613,956 2,613,956 - 2,876,305Sponsorship 114,430 89,999 115,091 115,000 153,000 70,000 181,885 133,000 564,406 407,999 156,407 466,000Interest revenue 3,406 3,155 4,113 5,059 5,288 6,705 5,236 7,203 18,043 22,122 (4,079) 21,511Profit/(loss) on disposal of non current assets - - - - - - (1,382) - (1,382) - (1,382) -Other revenue 1,406 1,375 7,014 12,684 1,473 1,375 1,200 1,375 11,093 16,809 (5,716) 12,000Reimbursements - - 572 - 3,564 - 13,977 5,000 18,112 5,000 13,112 -Good and services received below fair value - - - - - - 720,658 - 720,658 - 720,658 -

TOTAL REVENUE 772,732 748,018 1,433,767 786,232 163,325 731,569 1,631,009 850,067 4,000,833 3,115,886 884,947 3,445,816

EXPENSESBy major expense types or activity* eg:Employee costs 194,144 193,613 181,989 172,729 172,148 175,137 185,133 192,368 733,413 733,847 (434) 911,212Depreciation and amortisation expense - - - - - - 126,120 115,000 126,120 115,000 11,120 50,000Finance & Admin 36,176 37,508 35,382 41,423 29,114 36,561 54,492 49,136 155,164 164,628 (9,464) 164,682Entertainment 102,745 109,050 45,903 39,400 2,757 3,400 453,397 414,230 604,803 566,080 38,723 1,016,610Marketing 75,079 81,285 50,621 46,645 21,760 21,165 368,379 289,165 515,839 438,260 77,579 573,473Operations 111,636 120,375 119,218 116,590 6,056 6,705 428,858 394,705 665,768 638,375 27,393 851,806Good and services received below fair fair - - - - - - 720,658 - 720,658 - 720,658 -

TOTAL EXPENSES 519,781 541,831 433,113 416,787 231,834 242,968 2,337,038 1,454,604 3,521,766 2,656,190 865,576 3,567,783

NET PROFIT/(LOSS) BEFORE INCOME TAX 252,951 206,187 1,000,654 369,445 (68,509) 488,601 (706,029) (604,537) 479,067 459,696 19,371 (121,967)

FRINGE BENEFITS TAX - - - - - - 3,612 2,000 3,612 2,000 1,612 2,000

NET PROFIT/(LOSS) AFTER INCOME TAX 252,951 206,187 1,000,654 369,445 (68,509) 488,601 (709,641) (606,537) 475,454 457,696 17,758 (123,967)


Finance Governance Report

As At 30 June 2017



16


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Attachment 1

3.3 STATEMENT OF FINANCIAL POSITION


Current reporting period Same period last year

YTD YTD

Jun 17 Jun 16

$ $

CURRENT ASSETS

Cash and cash equivalents 481,528 132,944

Receivables 30,748 114,307

Inventories 17,044 10,417

Prepayments 189,570 10,287

Other current assets

718,890 267,955

NON-CURRENT ASSETS

Property, plant and equipment 223,216 263,438

223,216 263,438

TOTAL ASSETS 942,106 531,393

CURRENT LIABILITIES

Payables 14,380 58,593

Employee benefits Prov for A/L LSL 48,265 58,433

Employee benefits Prov for LSL 33,773 -

Superannuation 16,649 16,365

Other current liabilities Tax & PAYG 8,188 11,515

Accrued Liabilities 28,253 42,461

Unearned Revenue 3,600 -

153,108 187,367

NON-CURRENT LIABILITIES

Employee benefits Prov for LSL - 30,482

Loans - -

- 30,482

TOTAL LIABILITIES 153,108 217,849

NET ASSETS 788,998 313,544

EQUITY

Contributed equity 344,327 344,327

Reserves

Retained earning - opening (30,784) (168,044)

Retained earnings - current year 475,455 137,261

TOTAL EQUITY 788,998 313,544

* categories of reported balance sheet items will vary from organisation to organisation

depending on nature of activities and amounts involved


As At 30 June 2017

17


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Attachment 1

3.4 CASH FLOW STATEMENT AND FORECAST


Year 1 Year 2

Actual Budget Actual Budget Actual Budget Actual Budget Actual Budget Var Budget Budget

OPENING CASH 132,944 160,846 474,285 411,785 1,399,073 711,273 1,048,434 1,139,748 132,944 160,846 (27,902) 160,846 481,528

ADD OPERATING RECEIPTS

Sales receipts 131,244 28,874 168,971 65,184 185,475 8,975 225,113 276,774 710,803 379,807 330,996 379,808 550,209

Grants received - GCCC 653,328 653,328 1,306,656 653,328 - 653,328 653,328 653,328 2,613,312 2,613,312 - 2,613,312 2,876,305

Interest received 3,406 3,135 4,373 5,059 5,287 6,705 5,236 7,203 18,302 22,102 (3,800) 22,102 21,511Net Taxes - GST Collected 78,457 68,083 135,063 71,033 18,547 66,083 85,840 93,020 317,907 298,219 19,688 298,219 342,176GST Receivable - ATO 75,419 49,938 - - - 2,844 78,263 49,938 28,325 49,938 17,813

ADD CAPITAL RECEIPTS

Proceeds on disposals

Other capital receipts

TOTAL RECEIPTS 941,854 803,358 1,615,063 794,604 209,309 735,091 972,361 1,030,325 3,738,587 3,363,378 375,209 3,363,379 3,808,014

LESS OPERATING PAYMENTS

Payments for supplies and services 373,775 349,220 388,379 245,058 277,986 68,830 1,183,742 1,557,305 2,223,882 2,220,413 3,469 2,220,413 2,582,785

Payments to employees 191,128 178,882 172,064 181,877 159,417 184,286 185,029 186,401 707,638 731,446 (23,808) 731,446 855,617

Net Taxes - GST Payable 35,610 24,317 95,754 68,181 117,803 53,500 116,146 214,930 365,313 360,929 4,384 360,929 357,769

LESS CAPITAL PAYMENTS

Plant and equipment purchases 34,078 4,742 54,350 93,170 - 93,170 - 78,364

TOTAL PAYMENTS 600,513 552,419 690,275 495,116 559,948 306,616 1,539,267 1,958,636 3,390,003 3,312,787 77,215 3,312,788 3,874,535

CLOSING CASH (must equal cash per

balance sheet) 474,285 411,785 1,399,073 711,273 1,048,434 1,139,748 481,528 211,437 481,528 211,437 270,091 211,437 415,007

* categories of reported cash flow items will vary from organisation to organisation depending on nature of activities and amounts involved


As At 30 June 2017

FORECAST



18


100 Adopted Report

Attachment 1

3.5 MAJOR VARIANCES ANALYSIS

CategoryYTD Actual

$

YTD

Budget

$

Variance

$

Variance

%Analysis (provide commentary when variance greater than 10% or $10,000)

REVENUE

Sale of goods 55,946 50,000 5,946 12% Greater merchandise sales at Blues on Broadbeach than budgeted

Grants 2,613,956 2,613,956 - 0%

Sponsorship 564,406 407,999 156,407 38%

Increase in sponsorship contributions achieved $80k

Increase in stakeholder support revenue $76k

Interest revenue 18,043 22,122 (4,079) -18% Reduction in interest rate and slightly lower bank account balances

Profit/(loss) on disposal of non current assets (1,382) - (1,382) 0%

Other revenue 29,206 21,809 7,397 34% Digital Radios previously managed by BAL now managed by BLVA, therefore revenue not recovered by BAL ($5k)

Good and services received below fair value 720,658 - 720,658 100% Provision of in-kind sponsorships and agreements, offset below

TOTAL REVENUE 4,000,833 3,115,886 884,947 28%

EXPENSES

Employee costs 733,413 733,847 (434) 0%

Depreciation and amortisation expense 126,120 115,000 11,120 10% Unbudgeted capital items purchased (Board Approved) resulted in slightly higher depreciation expense

Finance & Admin 155,164 164,628 (9,464) -6% Timing Difference - some items expenditure delayed to the 2nd half.

Entertainment 604,803 566,080 38,723 7% Additional sponsorship and stakeholder revenue achieved distributed to enhance Blues on Broadbeach festival

Marketing 515,839 438,260 77,579 18% Additional sponsorship and stakeholder revenue achieved distributed to enhance Blues on Broadbeach festival

Operations 665,768 638,375 27,393 4% Additional sponsorship and stakeholder revenue achieved distributed to enhance Blues on Broadbeach festival

Good and services received below fair value 720,658 - 720,658 100% Provision of in-kind sponsorships and agreements, offset above

TOTAL EXPENSES 3,521,766 2,656,190 865,576 33%

Fringe Benefits Tax 3,612 2,000

NET PROFIT/(LOSS) AFTER INCOME TAX 475,455 457,696 19,371 4%



As At 30 June 2017

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101 Adopted Report

Attachment 1

3.6 RATIO ANALYSIS


Ratio Notes Current

reporting

date ratio

Comments

Current ratio

(current assets/current liabilities)

A measure of short-term liquidity, the current ratio

measures an organisation's ability to repay its short-

term debt (due in the coming 12 months) by using

short-term assets. Ideal current ratio is at least 2:1.

4.70

Debt ratio

(total liabilities/total assets)

Measures percentage of assets provided by creditors

and extent of using gearing. The lower the ratio, the

greater the asset protection to creditors.

0.16

Profit margin

(operating profit/net sales)

Measures net profitability of an organisation

0.1197

Under a Not-For-Profit

entity this ratio is not

relevant


As At 30 June 2017

20


102 Adopted Report

Attachment 1

Broad beach Alliance . Limited

BROADBEACH ALLIANCE LIMITED

ABN: 42 129 316 454

ANNUAL REPOR-r


' 1

Page 1 of24


103 Adopted Report

Attachment 2

BROADBEACH ALLIANCE LIMITED ANNUAL FINANCIAL REPORT


Contents

EXECUTIVE SUMMARY .................................................................................................................................... 3

DIRECTORS' REPORT ....................................................................................................................................... 4

AUDITOR'S INDEPENDENCE DECLARATION .................................................................................................... 8

STATEMENT OF COMPREHENSIVE INCOME ................................................................................................... 9

STATEMENT OF FINANCIAL POSITION .......................................................................................................... 10

STATEMENT OF CHANGES IN EQUITY ........................................................................................................... 11

STATEMENT OF CASH FLOWS ....................................................................................................................... 12

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS .............................................................. 13

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ................................................................... 13

2. REVENUE ....................................................................................................................................... 17

3. OTHER EXPENSES .......................................................................................................................... 17

4. CASH AND CASH EQUIVALENTS .................................................................................................... 17

5. TRADE AND OTHER RECEIVABLES ................................................................................................. 17

6. PLANT AND EQUIPMENT .............................................................................................................. 18

7. TRADE AND OTHER PAYABLES ...................................................................................................... 19

8. EMPLOYEE BENEFITS ...................................................................................................................... 19

9. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES .............................................. 19

10. COMMITMENTS ........................................................................................................................... 20

11. CONTINGENT LIABILITIES AND CONTINGENT ASSETS .............................................................. 20

12. CAPITAL MANAGEMENT ........................................................................................................... 20

13. RELATED PARTY DISCLOSURES .................................................................................................. 21

14. MEMBER'S GUARANTEE ........................................................................................................... 22

15. ECONOMIC DEPENDENCY ......................................................................................................... 22

16. EVENTS AFTER THE REPORTING PERIOD .................................................................................. 22

17. COMPANY DETAILS ................................................................................................................... 22

DIRECTORS' DECLARATION ........................................................................................................................... 23

INDEPENDENT AUDITOR'S REPORT ............................. h ............................................................................... 24

Broadbeach Alliance Limited Page2 .of.24


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BROADBEACH ALLIANCE LIMITED EXECUTIVE SUMMARY

On 1st July 2016, Broad beach Alliance welcomed a new Chairman Darryl Kelly, and three new directors, Mark Witheriff, Brad Dickfos and Sandra Livingstone. Added to the three existing directors, Peter Graham, Geoff Hogg and Cr Paul Taylor the business has strong strategic leadership to guide it through the next phase of its growth.

Broadbeach Alliance continues to demonstrate that it injects into the local economy tens of millions of dollars during normally quite tourism periods through staging our Events and Festivals. So successful have our events and festivals been, the economic impact of these activities are now felt across our city and indeed the state.

Our primary festival activity occurred from April- July 2017, and during that time we hosted the rapidly growing Gold Coast Superhero weekend, in conjunction with Supanova and the Gold Coast Film Festival. It is particularly pleasing to note the strong accommodation bookings during the Superhero weekend, in fact, bookings were greater than Easter, the previous weekend. This year's Superhero's Parade saw significant increases in both the parade participants and viewing audience to 7,500.

Our major festival, Blues on Broad beach, saw 161,804 attendees over four days. Room nights jumped from 130,000 to 135,000 resulting in $28 million spend across the city and the total spend across our State of $30.8 million. Interstate and international attendees continue to steadily grow. This growth was attributed to increased sponsorship resulting in significantly enhanced entertainment and marketing programs.

Due to the increase in numbers now attending our Blues festival and the associated work load on the team, with only a three-week gap between Blues and our relatively new Country Music Festival in June, a decision was made by the board to move this festival to the end of July, allowing the team time to deliver both festivals to the standard expected.

As part of moving the Country festival to July, the board and management also undertook an evaluation on our Jazz festival to establish if it was meeting the KPI's of the organisation. As a result of that evaluation it was decided that the festival was not meeting KPI's and we would cease doing the festival and use those funds to support other activations and events within the precinct and in particular the upcoming Commonwealth Games.

The success achieved in the past twelve months in gaining long term sponsorship was significant with committed sponsorship income of $1.8miliion 2017-2020. In kind support of $584,000 was received for 2017 and will vary year on year.

Broadbeach has undergone significant upgrade and renewal in the past twelve months. An investment of $1.2 billion dollars has seen many projects come to completion in this time including Pacific Fair, The Star Integrated Resort- stage one, The Oasis Retail and Dining precinct and the Synergy building. As part of the Commonwealth Games Legacy the Broad beach Bowls Club has been upgraded, as well as a $5 million upgrade of Surf Parade, the Broad beach Mall, new facilities in Kurrawa Park, and all parks and gardens have been refurbished.

The precinct continues to be popular with developers with over $2 billion in development applications with council for approval; this will continue to ensure that Broadbeach remains the strong and vibrant precinct it is today, into the future.

Significant work is being undertaken with various local and state governments on the delivery of Broad beach as not only a live site for the Commonwealth Games, but also hosting three major sporting events, the worlds media and be the transport hub to the sporting venues.

Broad beach Alliance is thankful to our Chairman and the Board who all give their time freely and who have set a new direction and strategy for the business which ensures sustainability into the future, the City of Gold Coast whose officers, the Mayor and Councilors, Gold Coast Tourism and Tourism and Events Queensland have all shown continued support, in all that we do. And of course the small professional team at BAL who are completely dedicated to the stakeholders of Broadbeach ensuring we continue to deliver sustainable events and festivals so they may continue to prosper.

Jan McCormick CEO - Broad beach Alliance

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DIRECTORS' DETAILS

BROADBEACH ALLIANCE LIMITED DIRECTORS' REPORT

Name Role Occupation Appointment Date Resignation Date

Mr. Darryl Kelly Chairperson Director, 1 July 2016 Bruttund Investment Pty Ltd

Mr. Mark Witheriff Deputy Joint Managing Director, 1 July 2016 Chairperson Knight Frank Gold Coast

Mr. Brad Dickfos Audit Director, 1 July 2016 Chairperson Dickfos Dunn

Cr. Paul Taylor Councillor, Division 1 0 13 August 2012 City of Gold Coast

Mr. Peter Graham Chairman 10 November 2014 Guzman Y Gomez Gold Coast

Mr. Geoffrey Hogg Managing Director 13 March 2015 Star Entertainment Group

Ms. Sandra Livingstone Asset General Manager 1 July 2016 14 June 2017 Pacific Fair ShaRping Centre

Mr. Stephen lhm Centre Manager 4 July 2016 Pacific Fair Shopping Centre

DIRECTORS' MEETING ATTENDANCE

During the financial year ended 30' June 2017, 9 meetings of directors were held. Attendance by each director was as follows:

Directors Meetings

No eligible to attend Number attended

Mr. Darryl Kelly

Mr. Mark Witheriff

Mr. Brad Dickfos

Cr. Paul Taylor

Mr. Peter Graham

Mr. Geoffrey Hogg

Ms Sandra Livingstone

9 8 9 8 9

9

9

9

8

9

8

8

8

5

SHORT-TERM AND LONG-TERM OBJECTIVES AND STRATEGIES

The company's short-term objectives are to: • Market the precinct of Broad beach with an events based marketing strategy,

• Increase the business events activity in the precinct by way of supporting our stakeholders and Gold Coast Tourism,

• Achieve operational excellence, regulatory compliance and be respected in the community,

• Ensure a great place to work,

• Achieve great results by delivering strong events for the precinct,

• Deliver strong economic return on investment of all our activities,

• Ensure that Broad beach leverages off the Commonwealth Games to the maximum benefit of our stakeholders, and

• Align with the City of Gold Coast- Destination Tourism Management Plan

The company's long-term objectives are to: • Drive the Future Vision process for Broadbeach post Commonwealth Games to ensure no 'hangover'

effect impacts the precinct

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• Ensure a strong collaborative approach to safety and security of the precinct with BAL, Queensland Police Service (QPS) and the Gold Coast camera network system, and

• Continue to deliver a strong festival strategy which delivers exceptional .return on investment.

To achieve these objectives, the company has adopted the following strategies: • Strong transparent leadership from the Chairman, Board and CEO of Broad beach Alliance. Setting

well defined KPI's in conjunction with City of Gold Coast, with expected outcomes that the team at Broadbeach Alliance can achieve,

• Work with City of Gold Coast, Gold Coast Tourism, Connecting Southern Gold Coast, Surfers Paradise Alliance and Study Gold Coast to deliver the objectives of the Destination Tourism Marketing Plan,

• Attract and retain quality staff who are committed to the entity's objectives. Broad beach Alliance believes that attracting and retaining quality staff will assist with the success of the entity in both the short and long term,

• Partnership with the Broad beach precinct stakeholders, evident by the growth and ongoing support for the precinct events and initiatives. Broad beach Alliance Limited ensures stakeholders understand and are committed to all objectives through quarterly forums,

• Ensure that the visitor to Broad beach has an enhanced experience, be this with festivals and events or just a family visit to the area. Ensure that Broad beach retains a point of difference, and

• Meet consistent standards of best practice Governance and Reporting. Provide clear expectations of professional accountability and responsibilities to all stakeholders.

PRINCIPAL ACTIVITIES

The principal activity of Broad beach Alliance Limited (BAL) during the financial year was to market and promote Broad beach as a destination to deliver sustainable economic growth throughout the precinct for our stakeholders.

During the past year, Broad beach Alliance looked at the pillars of the business and presented the company strategy to the City of Gold Coast (Council) in May 2016. There were no significant changes to the direction of the business, however a decision was made to move the date of the Broad beach Country Music Festival from June to July to allow staff time to debrief, recover and plan after Blues on Broad beach. We have continued as a business to build our festivals and events. A great deal of work continues into sourcing new sponsors and servicing our existing sponsors to ensure a continuation of those agreements.

KEY PERFORMANCE INDICATORS

1. Deliver a strong events-based marketing strategy which results in an economic value add to the Broadbeach Precinct equivalent to a minimum of five times the SAL annual gross budget.

The events delivered over the 2016/2017 Financial Year are listed below. The Broad beach Country Music Festival date was shifted from June to July, resulting in no festival for this Financial Year, and will be reported on in 2017/2018.

Month Event Attendance $Impact

May-17 Blues on Broadbeach 161,804* $28 million

Apr-17 Superhero Weekend 7,500 $750,000 est.

Dec-16 Broadbeach Carols 4,000 $100,000 est. ----

Sep-16 Broad beach Opera 3,000 $180,000 est.

Broadbeach Jazz Festival 10,000 $1.3 million est. ----

Total 186,304 $30,330,000 est.

*attendance established from qualified and professional external firm

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2. Visitor survey results indicates >90% positive satisfaction rating

Result: >97% satisfaction achieved

3. Media reports on the precinct reflect a positive view of the precinct

There was significant positive news in both traditional media and online for Broad beach commenting on Blues on Broadbeach, Broadbeach Country Music Festival, Broadbeach Jazz Weekend, Opera in the Park, Broadbeach Carols and various stories regarding development within the precinct.

4. Alignment of Broadbeach Precinct marketing activities and events and activations

All activation in the precinct aligns with the DTMP and the objectives of Broad beach Alliance.

s. Encourage Broadbeach Precinct businesses to engage with the Embracing 2018 Quality Service Program

We actively encourage our precinct business to engage with Embracing 2018 quality service, some 60% of our stakeholders have training procedures in place.

6. Increase the foot traffic flows through the Broadbeach Precinct by a minimum ·of 15% above non-event seasonal averages

Data not collected during period.

7. Increase in visitation during oH-peak times by 1 S% as a result of events and activations

Blues on Broad beach experienced an increase of more than 30% over off-peak times. The Jazz Festival experienced an increase of more than 5%, with trying circumstances given the closure of Surf Parade for roadworks. Opera experienced an increase of greater than 1 0%.

B. Number of campaigns delivered in conjunction with GCT to promote events and activations through domestic and international networks

In conjunction with Gold Coast Tourism, Blues on Broadbeach was part of a major campaign lilt's Live on the Gold Coast", reaching New Zealand, New South Wales and Victorian markets.

The Gold Coast Superhero was digitally promoted by Gold Coast Tourism.

9. A minimum of SO% of events delivered by BAL are attractive to visitors from outside the city with GCT networks leveraged to market to visitors

Blues on Broad beach, the Gold Coast Superhero Weekend and the Broad beach Jazz Festival are leveraged to visitors from outside the city, while Opera and Christmas are for locals.

10. Deliver a minimum of one whole-of-city event or activation in collaboration with Council's precinct entities that would be attractive to visitors from outside the city

The Gold Coast Superhero Weekend collaborates with the Gold Coast Film Festival to draw visitors from outside the city.

11. Collaborate with Council's precinct entities to grow existing events and activations limited by precinct boundaries

Quarterly meetings held with Alliances and cross-team support and collaboration throughout period as well as regular LTO meetings with GCT.

12. Generate a cash revenue stream for BAL (via sponsorship and stakeholder contributions and other revenue sources) to the equivalent of 10% of the special area levy

The table below shows the achievements for sponsorship and stakeholder contributions.

13. Deliver a value in-kind revenue stream to events to the equivalent of 2.5% of the special area levy

The table below shows the achievements for in-kind revenue streams.

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14. Visitor survey results indicates >90% positive satisfaction rating of businesses, accommodation providers and event attendees.

Independent surveys taken over the festival periods indicate the below satisfaction rating:

Visitor Satisfaction Stakeholder Satisfaction

>97% >97%

15. Zero breaches of BAL policy and procedures and an unqualified annual external audit.

There were zero breaches of BAL policy and procedures during the period and an unqualified Audit Report for June 2016 financial accounts was issued.

MEMBERS' GUARANTEE

The company is limited by guarantee. If the company is wound up, the Constitution states that each member is required to contribute a maximum of ten dollars ($10.00) each towards meeting any o~ligations of the company. As at 30 June 2017 there was 1 member- City of the Gold Coast.

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AUDITOR'S INDEPENDENCE DECLARATION

To the Directors of Broadbeach Alliance Limited

This auditor's independence declaration has been provided pursuant to s.307C of the Corporations Act 2001.

Independence declaration

As lead auditor for the audit of Broadbeach Alliance Limited for the financial year ended 30 June 2017, I declare that, to the best of my knowledge and belief, there have been:

(a) no contraventions c;>f the auditor independence requirements of the Corporations Act 2001 in relation to the audit

(b) no contraventions of any applicable code of professional conduct in relation to the audit.

,0~~ DASTOL F PA (as delega - the Auditor-General)

Queensland Audit Office Brisbane


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BROADBEACH ALLIANCE LIMITED STATEMENT OF COMPREHENSIVE INCOME


INCOME Revenue

EXPENSES Promotions and marketing expenses Events and festivals Administration expenses Other expenses

SURPLUS

TOTAL COMPREHENSIVE INCOME

Notes

2

3

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

Broad beach Alliance Limited

2017 2016 $ $

4,002,215 4,139,453 4,002,215 4,139,453

492,864 535,456 1,272,845 1,538,213

105,528 104,696 1,655,523 1,823,827 3,526,760 4,002,192

475,455 137,261

475,455 137,261

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BROADBEACH ALLIANCE LIMITED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2017

Notes 2017 2016 $ $

CURRENT ASSETS Cash and cash equivalents 4 481,528 132,944 Trade and other receivables 5 30,748 114,307 Inventories 17,044 10,417 Other current assets 189,570 10,287

TOTAL CURRENT ASSETS 718,890 267,955

NON-CURRENT ASSETS Plant and equipment 6 223,216 263,438

TOTAL NON-CURRENT ASSETS 223,216 263,438

TOTAL ASSETS 942,106 531,393

CURRENT LIABILITIES Trade and other payables 7 71,070 128,934 Employee benefits 8 82,038 58,433

TOTAL CURRENT LIABILITIES 153,108 187,368

NON-CURRENT LIABILITIES Employee benefits 8 30,482

TOTAL NON-CURRENT LIABILITIES 30,482

TOTAL LIABILITIES 153,108 217,850

NET ASSETS 788,998 313,543

EQUITY Retained earnings 788,998 313,543

TOTAL EQUITY 788,998 313,543


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Balance as at 1 July 2015

Surplus for the year

Balance as at 30 June 2016

Balance as at 1 July 2016

Surplus for the year

Balance as at 30 June. 2017

BROADBEACH ALLIANCE LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2017


Broadbeach-AIIiance Limited

Retained Earnings

$

176,282

137,261

313,543

313,543

475,455

788,998

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BROADBEACH ALLIANCE LIMITED STATEMENT OF CASH FLOWS


Notes 2017 2016 $ $

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Council of the City of Gold Coast grants 2,613,956 2,587,573 Receipts from contributions, donations and sponsorships 564,406 450,217 Receipts from other revenue 85,152 128,810 Interest received 18,043 22,086 Payments to suppliers and employees (2,845,692) (3, 184, 720)

NET CASH INFLOW FROM OPERATING ACTIVITIES 9 435,865 3,966

CASH FLOWS FROM INVESTING ACTIVITIES Payments for plant and equipment (89,826) (282,750) Proceeds from disposal of plant and equipment 2,545

NET CASH FROM INVESTING ACTIVITIES {87,281} {282,750}

Net increase/(decrease) in cash and cash equivalents 348,584 (278,784)

Cash and cash equivalents at beginning of financial year 132,944 411,728

CASH AND CASH EQUIVALENTS AT END OF FINANCIAL YEAR 4 481,528 132,944


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BROADBEACH ALLIANCE LIMITED NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

YEAR ENDED 30 JUNE 2017

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

{a) Reporting entity

Broadbeach Alliance Limited is a not-for-profit company limited by guarantee, incorporated and domiciled in Australia. The company's ultimate controlling entity is the Council of the City of Gold Coast.

{b) Basis of preparation

These general purpose financial statements are for the period 1 July 2016 to 30 June 2017 and have been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. A statement of compliance with the International Financial Reporting Standards (I FRS) cannot be made due to the company applying notfor-profit specific requirements contained in the Australian Accounting Standards.

Except where otherwise stated, these financial statements have been prepared under the historical cost convention.

The financial statements were authorised for issue by the Board of Directors on the date the Director's Declaration was signed.

{c) Rounding and comparatives

All balances are stated in Australian dollars and rounded to their nearest dollar.

Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period.

{d) Critical accounting estimates and judgements

The preparation of the financial statements requires the determination and use of certain critical accounting estimates, assumptions and management about the carrying amounts of assets and liabilities. Such estimates, judgements and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods as relevant.

Estimates and assumptions that have a potential significant effect are outlined in the following notes: • Valuation of plant and equipment- Note 1 (i) • Depreciation and amortisation- Note 1 (i) • Employee benefits. - Note 1 (k)

{e) Revenue recognition

Revenue is measured at the fair value of consideration received or receivable.

Revenue is recognised when the amount of revenue can be measured reliably, collection is probable, the costs incurred or to be incurred can be measured reliably and when the criteria for each of the company's different activities have been met. Details of the activity specific recognition criteria are described below.

Grants, sponsorships and contributions received are non-reciprocal in nature and revenue is recognised upon receipt.

Interest income is recognised as it accrues.

Revenue from sale of goods or rendering of services is recognised upon delivery of goods or services to customer.

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(f) Cash and cash equivalents

Cash and cash equivalents include cash on hand and deposits held at call with banks that are readily convertible to known amounts of cash.

(g) Trade and other receivables

Trade receivables and other receivables are recognised at the amounts due at the time of sale or service delivery, that is, the agreed purchase price I contract price.

The collectability of receivables is assessed periodically with allowance being made for impairment. Bad debts are written off when identified.

(h) Inventories Inventories comprise items held for sale. Inventories are valued at the lower of cost and net realisable value.

(i) Plant and equipment

Recognition and measurement Plant and equipment are carried at cost less accumulated depreciation and any impairment losses.

Items of plant and equipment are fully capitalised provided their value on acquisition exceeds $300.

All other items of plant and equipment are expensed in the year of acquisition.

Depreciation Plant and equipment are depreciated on a diminishing value basis over their useful lives to the company 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 useful lives for each class of depreciable assets are:

Asset class Plant and equipment Any other asset classes

Rate 3-10 Years 3-20 Years

The residual values and useful lives of plant and equipment assets are reviewed and adjusted if appropriate on an annual basis.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are recognised as income in profit and loss in the period in which they arise.

(j) Trade and other payables

Trade and other payables are recognised upon receipt of the goods or services ordered and are measured at the agreed purchases/contract price net of application discounts. Amounts owing are unsecured and are generally settled on 30-day terms.

(k) Employee benefits

Liabilities are recognised for employee benefits such as annual leave and long service leave in respect of services provided by the employees up to the reporting date. Liabilities for employee benefits are assessed at each reporting date.

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Amounts are expected to be settled within 12 months are calculated on current wage and salary levels and includes related employee on-costs.

Amounts are not expected to be settled are calculated on projected future wage and salary levels and related employee on-costs, and are discounted to present values.

The obligations are presented as current liabilities in the balance sheet if the company does not have an unconditional right to defer settlement for at least 12 months after the reporting period.

Superannuation contributions are made by the company to an employee's superannuation fund and are recorded as expenses when incurred.

{I) Financial instruments

Recognition Financial assets and financial liabilities are recognised in the statement of financial position when the company becomes party to the contractual provisions of the financial instrument.

Classification Financial instruments are classified and measured as follows: (i) Receivables - held at cost less impairment

(ii) Payables - held at cost.

The company does not enter into transactions for speculative purposes.

{m) Leases

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are recognised as expenses on a straight-line basis over the lease term. The company does not have any finance leases.

{n) Income tax

No provision for income tax has been raised as the company is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

{o) Goods and services tax {GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables in the statement of financial position are shown inclusive of GST.

The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the statement of financial position.

Cash flows are presented in the statement of cashflows on a gross basis, except for the GST component of investing activities, which are disclosed as operating cash flows.

{p) New and revised Accounting Standards

The company adopts all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for the current reporting period. The adoption of the new and revised accounting standards has not resulted in any-significant impact on the reported financial position, financial performance or c.ash flows of the company. This year the company has applied AASB 124 Related Party Disclosures for the first time. As a result, the company has disclosed more information about related parties and transactions with those related parties. This information is presented in Note 13.

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Accounting Standard

AASB9 Financial Instruments

AASB15



Australian Accounting Standards and Interpretations that have recently been issued or amended, but are not yet effective and have not been adopted by the company for the year ended 30 June 2017, are outlined below along with an assessment of the impact:

Application Nature of Change Impact Date

1 Jul 2018 AASB 9 replaces AASB 139 Financial The new requirements are unlikely Instruments: Recognition and to result in a significant impact to Measurement. The main change is to the entity. the requirements for the classification, measurement and disclosures associated with financial assets.

1 Jul 2019 AASB 15 replaces AASB 118 The new requirements are unlikely Revenue from Revenue, AASB 11 Construction to result in a significant impact to Contracts with Contracts and some revenue related the entity. Customers interpretations. It contains a

comprehensive and robust framework for the recognition, measurement and disclosure of revenue from contracts with customers.

AASB16 1 Jul2019 AASB 16 replaces AASB 117 Leases BAL has some leases that are not Leases and some lease-related on its balance sheet. These will

interpretations. It requires all leases to need to be included on the balance be accounted for 'on-balance sheet' by sheet when this standard comes lessees, other than short-term and low into effect. A lease liability will value asset leases. It also requires initially be measured at the present new and different disclosures about value of the lease payments to be leases. made over the lease term. A

corresponding right-to-use asset will also be recognised over the lease term. If this requirement had been adopted at 30 June 2017 management estimate that net assets would have decreased by $77,000. This estimation is based on SAL's current obligations

AASB 1058 1 Jul 2019 AASB 1058 replaces AASB 1 004 The new requirements are unlikely Income of Not- Contributions. It establishes revenue to result in a significant impact to for-Profit Entities

recognition principles for not-for-profit the entity. entities where the consideration provided to acquire an asset is significantly less than the fair value of that asset. It will also defer income recognition in some circumstances for not-for-profit entities, particularly where there is a performance obligation or any other liability.

All other Australian Accounting Standards th.at have recently been issued or amended but are not yet effective have had no material impact on the company's accounting policies or on these financial statements. The company does not intend to adopt any of these pronouncements before their effective dates.

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(q) Goods and $ervices received below fair value

Contributions of goods and services are recognised only if the fair value can be measured reliably. Where this is the case, an equal amount is recognised as revenue and expense.

2017 2016 $ $

2. REVENUE

Grants from Council of the City of Gold Coast 2,613,956 2,156,300 Sponsorships 466,253 550,073 Other contributions 116,266 157,748 Contributions to fit out 220,000 Interest received 18,043 22,086 Other revenue 67,039 82,448 Goods and services received below fair value 720,658 950,798

4,002,192 4,139,453

3. OTHER EXPENSES

Employee benefits Wages and salaries 615,181 619,308 Annual leave and long service leave expense 57,094 33,439 Superannuation contributions 61,138 57,449

Depreciation and amortisation 126,120 49,485 Impairment losses on trade receivables 2,055 1,000 Rental expense on operating leases 36,375 62,144 Auditor's remuneration for audit of financial statements 10,500 9,500 Accounting fees 2,383 6,727 Motor vehicle expenses 2,375 Subscriptions 16,650 29,590 Loss on disposal of plant and equipment 1,382 2,523 Goods and services received below fair value 720,658 950,798 Fringe benefits tax expense 3,612 1,864

1,655,523 1,823,827

4. CASH AND CASH EQUIVALENTS

Cash on hand 500 550 Cash at bank 478,723 130,122 Short term deposits 2,305 2,272

481,528 132,944

5. TRADE AND OTHER RECEIVABLES

Trade receivables 6,227 27,481 GST receivables 24,521 86,826

30,748 114,307

Ageing of trade and other receivables is as follows: Not past due 24,521 89,034 Past due 1-30 days 6,227 7,803 Past due 31-60 days 1,980 Past due 61-90 days 3,850 Past due over 90 days 11,640 Total 30,748 114,307

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YEAR ENDED 30 JUNE 2017 2017 2016

$ $ 6. PLANT AND EQUIPMENT

Plant and equipment- at cost 127,785 75,973 Accumulated depreciation {41,587} (32,375}

86,198 43,598

Furniture and fittings - at cost 2,430 6,815 Accumulated depreciation (2,095} (5,532}

335 1,283

Minor Plant and Equipment - at cost 18,126 16,974 Accumulated depreciation (7,512} (5,812}

10,614 111162

Motor vehicles - at cost 24,544 Accumulated depreciation {4, 152}

20,392

Leasehold improvements- at cost 238,937 238,937 Accumulated depreciation (133,260} (31 ,542}

105,677 207,395 223,216 263,438

Movements in carrying amounts

Plant and equipment Carrying amount at the beginning of the year 43,598 30,133 Additions at cost 60,657 30,311 Disposals (2,896) (1,909) Depreciation expense (15,161} (14,937} Carrying amount at the end of the year 86,198 43,598

Furniture and fittings Carrying amount at the beginning of the year 1,283 2,035 Disposals (838) (395) Depreciation expense (110} (357} Carrying amount at the end of the year 335 1,283

Minor Plant and Equipment Carrying amount at the beginning of the year 11,162 527 Additions at cost 4,625 13,502 Disposals (193) (219) Depreciation expense (4,980} (2,648} Carrying amount at the end of the year 10,614 11,162

Motor Vehicles Carrying amount at the beginning of the year Additions at cost 24,544 Depreciation expense (4,152)

Carrying amount at the end of the year 20,392

Leasehold Improvements Carrying amount at the beginning of the year 207,395 Additions at cost 238,937 Depreciation expense {101,718} (31,542} Carrying amount at the end of the year 105,677 207,395

223,216 263,438

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7. TRADE AND OTHER PAY ABLES

Trade payables Accrued exp~nses Unearned revenue PAYG withholding payable Superannuation payable

8. EMPLOYEE BENEFITS

9.

Current Annual leave

Current provisions expected to be settled wholly after more than 12 months

Long service leave

Non-current Long service leave

Total employee benefits- current and non-current

RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES

Surplus after tax

Non-cash items Depreciation and amortisation Loss on disposal of plant and equipment

Change in operating assets and liabilities (lncrease)/decrease in trade receivables (lncrease)/decrease in inventories (lncrease)/decrease in other current assets (lncrease)/decrease in GST receivables Increase/( decrease) in trade and other payables Increase/( decrease) in employee benefits

Net cash flows from operating activities

Broadbeach Alliance Limited

2017 $

14,380 28,253

3,600 8,188

16,649 71,070

48,265 48,265

33,773 33,773

82,038

2017

$ 475,455

126,121 1,382

21,254 (6,627)

(178,884) 58,979

(54,938) {6,877}

{167,093} 435,865

2016 $

58,593 42,461

11,515 16,365

128,934

58,433 58,433

30,482

88,915

2016

$ 137,261

49,485 2,523

(38,327) 4,917 8,547

(180, 123) 19,683

{185,303} 3,966

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10. COMMITMENTS

Operating Lease Commitments

Commitments for minimum lease payments in relation to noncancellable operating leases are payable as follows:

Within one year One to five years

44,849 30,401 75,250

43,876 75,868

119,744

The property lease commitment is a non-cancellable lease contracted for but not capitalised in the financial statement with a five-year term- completion date 30 April 2020. A four percent increase on gross rental will occur in line with the lease anniversary.

The premises lease commitment is a non-cancellable lease contracted for but not capitalised in the financial statements with a three-year term, completion date 30 November 2018. The lease is with the sole member, the Council of the City of Gold Coast. A two point five percent increase on gross rental will occur in line with the lease anniversary.

11. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The company is not aware of any contingent liabilities or contingent assets as at the date of this report.

12. CAPITAL MANAGEMENT

Management controls the capital of the company to ensure that adequate cash flows are generated to fund its programs and that returns from investments are maximised. The Board and management ensure that the overall risk management strategy is in line with this objective.

The company's capital consists of financial liabilities, supported by financial assets.

Management effectively manages the company's capital by assessing the company's financial risk and responding to changes in these risks and in the market.

There have been no changes to the strategy adopted by management to control the capital of the company since the previous year.

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13. RELATED PARTY DISCLOSURES

The company's related parties include its key management personnel and related entities as described below.

Unless otherwise stated, transactions with related parties are on normal commercial terms and conditions no more favourable than those available to other parties.

Ultimate controlling entity

The Council of the City of Gold Coast is the ultimate controlling entity.

Transactions with ultimate controlling entity

The following transactions occurred with the Council of the City of Gold Coast:

Grant revenue Sponsorship revenue Other revenue Rental Expense

Amounts owed by Council of the City of Gold Coast

2017 $

2,613,956 116,704 20,377 36,450

3,752

2016 $

2,156,300 265,409 220,000

12,000

The Council of the City of Gold Coast maintains and manages all insurance policies as required by the entity including Directors and Officers, Public Liability and Workers Compensation.

Key management personnel compensation

Key management personnel are defined as those persons having authority and responsibility for planning, directing and controlling the activities of the company, being members of the Board and the Chief Executive Officer.

Short term employee benefits Post-employment benefits Long term benefits

2017 $

192,169 17,276 3,291

212,736

2016 $

194,168 17,184 2,898

214,250

The directors act in an honorary capacity and receive no compensation for their services.

Directors who hold positions as Councilors of the Council of the City of Gold Coast (the controlling entity) receive no compensation from the company for their services.

Transactions with key management personnel

Details of transactions between the Company and other related parties are disclosed below:

Nature of transaction Nature of Amount of Terms and conditions relationship transactions

Purchase and receiving CEO-Jan 6,000 Transactions are in relation to the of goods and services McCormick provision of goods and services for

events staged by the company Purchase and receiving Directors - Brad 2,260 Transactions are in relation to the of goods and services Dickfos review of end of financial year accounts

and lodgment of Fringe Benefits Tax return

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Other related party transactions

Other related parties include the close family members of KMP and any entities controlled or jointly controlled by KMP of their close family members. Close family members include spouse, child and dependent of a KMP or their spouse.

Details of transactions between the company and other related parties are disclosed below:

Nature of transaction Nature of Amount of Terms and conditions relationship transactions

Purchase and receiving Close family 3,092 Transactions are in relation to the of goods and services member provision of goods and services for

events staged by the company

14. MEMBER'S GUARANTEE

The company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the company is wound up, the constitution states that each member is required to contribute a maximum of $10 each towards meeting any outstanding obligations of the company. At 30 June 2017 the number of members was one, being the Council of the City of Gold Coast.

15. ECONOMIC DEPENDENCY

The continuation of the company is dependent on the ongoing financial commitment from the Council of the City of Gold Coast. For the 2017-18 financial year, Council has approved funding of $2,876,304.

16. EVENTS AFTER THE REPORTING PERIOD

There are no subsequent events that impact on these financial statements.

17. COMPANY DETAILS

The company's registered office and principal place of business is at:

Broadbeach Alliance Limited Ground Floor, Synergy Building 2729 Gold Coast Highway Broad beach QLD 4218



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Attachment 2

In the directors' opinion:

BROADBEACH ALLIANCE LIMITED DIRECTORS' DECLARATION

(a) the financial statements and notes are in accordance with the Corporations Act 2001, including:

(i) complying with Australian Accounting Standards (including Australian Accounting Interpretations) and the Corporations Regulations 2001; and

(ii) giving a true and fair view of the company's financial position as at 30 June 2017 and of its performance for the financial year ended on that date, and

(b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the directors.

On behalf of the Board



125 Adopted Report

Attachment 2

INDEPENDENT AUDITOR'S REPORT

To the Members of Broadbeach Alliance Limited

Report on the audit of the financial report

Opinion

I have audited the accompanying .financial report of Broad beach Alliance Limited.

In my opinion, the financial report:

a) presents fairly the company's financial position as at 30 June 2017, and its financial performance and cash flows for the year then ended

b) complies with the Corporations Act 2001, the Corporations Regulations 2001 and Australian Accounting Standards.

The financial report comprises the statement of financial position as at·Jo June 2017, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes to the financial statements including summaries of significant accounting policies and other explanatory information, and the directors' declaration.

Basis for opinion

I conducted my audit in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial report section of my report.

I am independent of the company in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code and the Auditor-General of Queensland Auditing Standards. I am also independent of the group in accordance with the auditor independence requirements of the Corporatiqns Act 2001, and confirm that the independence declaration req.uired by the Corporations Act 2001, which has been given to the directors of the company, would be in the same terms if given to the directors as at the time of this auditor's report.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Responsibilities of the company for the financial report

The company's directors are responsible for the preparation of the financial report that gives a true and fair view in accordance with the Corporations Act 2001, the Corporations· Regulations 2001 and Australian Accounting Standards, and for such internal control as the company's directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

The company's directors are also responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.


126 Adopted Report

Attachment 2

Other information

Other information comprises the information included in the entity's directors' report and executive summary for the year ended 30 June 2017, but does not include the financial report and my auditor's report thereon.

Those charged with governance are responsible for the other information.

My opinion on the financial report does not cover the other information and accordingly I do not express any form of assurance conclusion thereon.

In connection with my audit of the financial report, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or my knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.

I have nothing to report in this regard.

Auditor's responsibilities for the audit of the financial report

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

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

• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of the company's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the company.

• Conclude on the appropriateness of the company's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. I base my conclusions on the audit evidence obtained up to the date of my auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.


127 Adopted Report

Attachment 2

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

I communicate with the company's directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

,o~ A~~·"" DAStolzFC~ as delegate of the Auditor-General

Queensland Audit Office Brisbane


128 Adopted Report

Attachment 2

748th Council Meeting 8 December 2017 129 Governance & Administration Committee Meeting 6 December 2017 Adopted Report ITEM 4 OFFICE OF THE CHIEF OPERATING OFFICER CITY OPERATIONAL PLAN 2017-18 – PERFORMANCE REPORT QUARTER ONE LG113/580/21(P1) Refer Attachment 1 – City Operational Plan 2017-18 - Performance Dashboard Q1 1 BASIS FOR CONFIDENTIALITY Not Applicable.

2 EXECUTIVE SUMMARY Not applicable.

3 PURPOSE OF REPORT This report provides Council with the quarterly progress report on the implementation of the Corporate and Operational Plans, as a requirement under the Local Government Act 2009 and sections 174 (3) and 174 (5) of the Local Government Regulations 2012. 4 PREVIOUS RESOLUTIONS G17.0619.001 – Adoption of the City Operational Plan 2017-18 G17.0613.013 – Adoption of Gold Coast 2022 (Corporate Plan) 5 DISCUSSION This report provides an assessment of progress against the City Operational Plan 2017-18 - as at 30 September 2017, Quarter 1. The City Operational Plan includes initiatives in progress this year which support the implementation of Gold Coast 2022, key corporate strategies and the Gold Coast 2018 Commonwealth Games. 5.1 MEASURING OUR PROGRESS The City Operational Plan 2017-18 comprises eight external Service Programs, delivering 34 services, and two internal Service Programs comprising 13 services. Progress of key initiatives within each service is reported each quarter and each initiative is assessed and given a status indicator. This report is based on exception reporting where significant deviations from expected progress are reported, focussing on those initiatives that require attention. 5.2 SUMMARY OF PROGRESS As at quarter one, the City Operational Plan consisted of 65 reported initiatives with a total budget of $152.8 million. Key results include:

• 82% (53) of the 65 reported initiatives in the City Operational Plan were ‘on track’ and 3% (two initiatives) were ‘completed’ in this quarter.

• 49% ($75.1m) of the total City Operational Plan budget of $152.8 million had been spent (actuals plus commitments)

• 10% (7) of initiatives were assessed as ‘monitor’. • 3% (2) of initiatives were assessed as ‘action required’ • 2% (1) of initiatives were ‘on hold’. The City Operational Plan Performance Dashboard Quarter 1 (Attachment 1) provides a more detailed view of non-financial and financial performance this quarter.

748th Council Meeting 8 December 2017 130 Governance & Administration Committee Meeting 6 December 2017 Adopted Report ITEM 4 (Continued) CITY OPERATIONAL PLAN 2017-18 - PERFORMANCE REPORT QUARTER ONE LG113/580/21(P1) 5.3 PROPOSED CHANGES TO THE CITY OPERATIONAL PLAN The following changes are proposed to be made to the Operational Plan: a. Gold Coast Waste Management Services Annual Performance Plan 2017-18

It is proposed that the list below replace the published list of five major investment initiatives in the Gold Coast Waste Management Services Annual Performance Plan 2017-18 (section 6, page 7).

Initiative 2017-18 Budget

Promote reuse and recycling thereby reducing waste to landfill, including (but not limited to) green waste and concrete products

$3,139,431

Provision of kerbside clean ups to eligible dwellings within the current waste collection area

$1,066,000

Implementation of key initiatives outlined in the Solid Waste Strategy 2024, including (but not limited to): • Waste and Recycling Centre (WRC) review • Assessment of Organic Waste Program Commercial Food Waste

Service

$1,510,796

Develop a detailed design and construct an engineered landfill liner system at Reedy Creek

$500,000

The current list of initiatives in the Annual Performance Plan replicates the Solid Waste Strategy key initiatives (City Operational Plan section 2.3.2 page 67) in error.

These additional four major investment initiatives to also be added to the City Operational Plan 2017-18. b. Gold Coast 2022

It is proposed that eight initiatives, which contribute to Gold Coast 2022 Signature Actions be added to the City Operational Plan 2017-18, as shown below.

Initiative Revised Budget

Undertake a housing needs analysis study to support housing choice in the city

$36,731

Review the future direction and plans for the Spit $124,995

Develop and implement an Into Nature program educate, engage with and encourage the community to access the city's natural assets

$60,470

Develop and implement a cost effective Targeted Statutory Covenants program to proactively protect high value areas of the city's natural asset network

$0

Advocate for a world-class dive attraction and attract new visitors to the city through targeted marketing

$99,568

Develop and implement a Targeted Occupier Strategy to encourage new investment and business into the CBD to increase demand for existing commercial floor space and the development of new high quality commercial buildings

$0

748th Council Meeting 8 December 2017 131 Governance & Administration Committee Meeting 6 December 2017 Adopted Report ITEM 4 (Continued) CITY OPERATIONAL PLAN 2017-18 - PERFORMANCE REPORT QUARTER ONE LG113/580/21(P1) Initiative Revised Budget

Work with Gold Coast Tourism to encourage tourism operators to consider accessibility as part of their everyday business to encourage accessible tourism

$140,589

Plan and investigate Light Rail Stage 3 (Southern extension) $722,464

c. Cultural Precinct Stage 1B of the Cultural Precinct development was included in the Operational Plan as one initiative. This has now been split into two separate initiatives: (i) Art Gallery and supporting infrastructure and (ii) the Green (pedestrian) bridge. It is proposed that these should now be included as separate initiatives in the Operational Plan. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN This report provides an assessment of progress against the City Operational Plan 2017-18, including Corporate Plan signature actions and key corporate strategy initiatives - as at 30 September 2017, Quarter 1. 7 GOLD COAST 2018 COMMONWEALTH GAMES IMPACT The City Operational Plan includes a number of initiatives which contribute to the Gold Coast Commonwealth Games. These are being managed and delivered as part of the Commonwealth Games Program. 8 FUNDING AND RESOURCING REQUIREMENTS This report was developed using existing internal resources only. 9 RISK MANAGEMENT The initiatives included in the City Operational Plan address a range of risks on the Corporate Risk Register. 10 STATUTORY MATTERS This report is presented to Council pursuant to the Local Government Act 2009 and to regulations 174 (3) and 174 (5) of the Local Government Regulations 2012, which state:

“(3) The chief executive officer must present a written assessment of the local government’s progress towards implementing the annual operational plan at meetings of the local government held at regular intervals of not more than 3 months. (5) A local government must discharge its responsibilities in a way that is consistent with its annual operational plan.”

11 COUNCIL POLICIES Not applicable 12 DELEGATIONS Not applicable

748th Council Meeting 8 December 2017 132 Governance & Administration Committee Meeting 6 December 2017 Adopted Report ITEM 4 (Continued) CITY OPERATIONAL PLAN 2017-18 - PERFORMANCE REPORT QUARTER ONE LG113/580/21(P1) 13 COORDINATION & CONSULTATION Each Director has approved individual directorate contributions to the detailed document “Operational Plan Initiatives and Activities Update”, which provided the basis for this quarterly report. 14 STAKEHOLDER IMPACTS Not applicable 15 TIMING This report is provided on a quarterly basis in accordance with regulations 174(3) and 174(5) of the Local Government Regulations 2012. 16 CONCLUSION The City Operational Plan 2017-18 - Performance Report provides an assessment of progress against the City Operational Plan 2017-18. As at quarter one, 82% of initiatives were on track and 49% of the latest revised budget has been spent or committed. This demonstrates good progress on the implementation of this year’s plan to date. 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That Council approves the City Operational Plan 2017-18 Performance Report for

quarter one. 2 That Council approves changes to the Gold Coast Waste Management Services

Annual Performance Plan 2017-18 (identified at section 5.3.a.) 3 That Council approves the addition of initiatives changes to the City Operational Plan

2017-18 (identified at section 5.3. a, b and c.) Author: Authorised by: Sarah Wilton Joe McCabe Manager Corporate Planning and Performance

Chief Operating Officer

14 November 2017 TRACKS REF: 65674884 COMMITTEE RECOMMENDATION GA17.1206.004 moved Cr Crichlow seconded Cr Taylor 1 That Council approves the City Operational Plan 2017-18 Performance Report for

quarter one. 2 That Council approves changes to the Gold Coast Waste Management Services

Annual Performance Plan 2017-18 (identified at section 5.3.a.) 3 That Council approves the addition of initiatives changes to the City Operational

Plan 2017-18 (identified at section 5.3. a, b and c.)

CARRIED


ITEM 4 (Continued) CITY OPERATIONAL PLAN 2017-18 - PERFORMANCE REPORT QUARTER ONE LG113/580/21(P1)

City Operational Plan 2017-18 - Performance Dashboard Attachment 1 – City Operational Plan 2017-18 - Performance Dashboard Q1

Initiative status The following criteria represent the status of initiatives in this dashboard.

Status Indicator criteria

Completed Initiative has been completed

Monitor Progress is not as expected but action is being/has been undertaken and is expected to be back on track prior to the end of the next reporting period

Action required Progress is significantly behind schedule or is rated as ‘monitor’ for three consecutive quarters and decisive action is required to get back on track

On hold Information was expected but is not available at time of publication / data not reported this quarter / initiative is on hold

Cancelled Initiative has been cancelled

On track Initiative is proceeding to plan with no indication of future impediments to progress

Off track Collection of initiatives which include those identified as closely monitor, action required, on hold and cancelled

Note: all percentages in the dashboard report have been rounded.

CITY OPERATIONAL PLAN - PERFORMANCE PROGRESS

Initiative non-financial performance

3% (2) 3%

(2) 10% (7)

2% (1)

82% (53)

Action required

Completed

Monitor

On hold

On track

Initiative financial performance

26% $40.5m 51%

$77.7m

23% $34.6m

Actuals

Unspent

CommitmentsBudget $152.8m

References: #65358350 Q1 2017-18 Operational Plan Performance Workbook #65628521 – City Operational Plan 2017-18 Q1 - Detailed Initiative Report

65 initiatives

OVERVIEW This report provides an update on progress against the City Operational Plan 2017-18 (including Gold Coast 2022 signature actions) as at 30 September, quarter one (financial information as at 11 October 2017).

As at quarter one, the Operational Plan consisted of 65 reported initiatives with a total budget of $152.8 million.

Key results for 2017-18 include:

• 3% (two initiatives) were ‘completed’ in this quarter

• 82% (53) of the 65 reported initiatives in the Operational Plan were ‘on track’

• 49% ($75.1m) of the total Operational Plan budget of $152.8 million had been spent (actuals plus commitments)

• 10% (7) of initiatives were assessed as ‘monitor’.

• 3% (2) of initiatives were assessed as ‘action required’

• 2% (1) of initiatives were ‘on hold’.

Quarter 1 Quarter 4 Quarter 2 Quarter 3


ITEM 4 (Continued) CITY OPERATIONAL PLAN 2017-18 - PERFORMANCE REPORT QUARTER ONE LG113/580/21(P1)

•

Initiative non-financial performance – exceptions

Programs identified for exception reporting: • Conservation and Environment:

o Deliver the Palm Beach Shoreline Project - assessed as monitor

• Economic Development :

o Deliver an integrated visitor servicing plan to improve the overall visitor experience through delivery of the latest digital technology, mobile and pop-up solutions - assessed as monitor

o Provide a media centre for non-accredited media to access information about the Gold Coast, during GC2018 - assessed as monitor

o Redevelop the Surfers Paradise Visitor Information Centre in Cavill Mall - assessed as monitor

o Support the construction of world-class mountain bike trails and facilities - assessed as on hold

• Parks, Recreation and Culture:

o Completion of three playing surfaces and ancillary facilities in Coplicks Sports Park, Tallebudgera – assessed as action required

o Rock stabilisation works at Lions Head Park, Miami to protect against slope instability - assessed as monitor

o Develop a master plan for the Gold Coast Central Park - assessed as monitor

• Water and Sewerage:

o Long Term Recycled Water Release - assessed as monitor

INITIATIVE FINANCIAL PERFORMANCE BY PROGRAM

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

City Transport CommunityHealth & Safety

Conservation &Environment

EconomicDevelopment

InternalServices

OrganisationalCapability

Parks,Recreation &

Culture

WasteManagement

Water &Sewerage

Unspent Commitments Actuals

$46.9m $2.6m $21.7m $14.8m $2.7m $9.8m $24.2m $.8m $29.2m $152.8m

Financial performance – exceptions

As at Quarter 1, the combined spend and commitments was $75.1m (49%) of the total budget, comprising actuals of $40.5m (26%), plus commitments of $34.6m (23%).

Programs identified for exception reporting (% spent including commitments):

• Organisational Capability is only 6.8% spent – the majority of the unspent budget is associated with:

o Replace the Grange Water billing system as part of the Local Government Platform project.

• Community Health and Safety (17.6% spent) - the majority of the unspent budget is associated with two initiatives:

o Deliver disability access and inclusion initiatives including beach access, mobility maps and recharge points.

o Replacement of the drainage system between Dutton Street and Garrick Street, Coolangatta.

• Waste Management (9.5% spent) - the majority of the unspent budget is associated with two initiatives:

o Commercial Food Waste Service 2017-18

o Reedy Creek Landfill Cell 3 Liner

INITIATIVE NON-FINANCIAL PERFORMANCE BY PROGRAM

9% 14% 13% 18% 25%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

City Transport CommunityHealth & Safety

Conservation &Environment

EconomicDevelopment

Internal Services OrganisationalCapability

Parks,Recreation &

Culture

WasteManagement

Water &Sewerage

Off track On track

11 5 7 15 1 2 17 3 4


ITEM 5 ORGANISATIONAL SERVICES TRAVEL AND TRAVEL RELATED EXPENSES – COUNCILLORS AND STAFF 1 JULY – 30 SEPTEMBER 2017 HR829/02(P1) Refer 4 page attachment A Refer 1 page attachment B 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT This report provides a summary of Council funded travel activities for Councillors and staff for the period 1 July to 30 September 2017 and a comparison report summarising travel expenditure for 1 July to 30 September 2016. 4 PREVIOUS RESOLUTIONS Ex Council Minute No GF08.0611.007:

“That a report be brought back to Council on all conferences paid for by Council, attended by staff, contractors or consultants, on a three monthly basis. The report to contain details of the dates, cost, the relevant budget numbers they were charged to, and whether the attendees were speakers at the conference or convention.”

5 DISCUSSION A report of Council funded travel activities for Councillors and staff for the period 1 July to 30 September 2017 is provided as Attachment A. There were 57 travel requests processed within this period. There were three conference speakers (Council employees). The following table shows a comparison with the same period last year.

1 July – 30 Sep 2016 1 July – 30 Sep 2017

No. of Travel Requests

Total Expenditure ($)

No. of Travel Requests

Total Expenditure ($)

Commonwealth Games Related Travel 0 0 5 42,278 Conferences 27 39,299 19 38,610 Business Meetings 8 8,683 23 34,384 Trade Missions 5 32,881 0 0 Study Tour 0 0 5 5,225 Expo / Trade Show 4 14,352 2 2,187 Conference Speakers 5 2,294 3 3,495 Total 49 97,509 57 126,179


ITEM 5 (Continued) TRAVEL AND TRAVEL RELATED EXPENSES – COUNCILLORS AND STAFF 1 JULY – 30 SEPTEMBER 2017 HR829/02(P1) A comparison report by directorate for travel related expenditure for the period 1 July to 30 September 2016 and 1 July to 30 September 2017 is provided as Attachment B. Also provided in Attachment B is a quarterly international travel comparison summary report. This report summarises total international travel related expenditure for the periods 1 July to 30 September 2016 and 1 July to 30 September 2017. The expenditure on travel and related activities for the 2017-18 financial year of $126,179 represents 0.0077% of Council’s initial accrual budget of $1.640 billion for 2017-18. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Not applicable. 7 GOLD COAST 2018 COMMONWEALTH GAMES IMPACT Commonwealth Games related travel is included in this report. 8 FUNDING AND RESOURCING REQUIREMENTS All travel costs are funded from individual directorate budgets. 9 RISK MANAGEMENT Not applicable. 10 STATUTORY MATTERS The Local Government Regulation 2012 requires disclosure of overseas travel in Council’s Annual Report. 11 COUNCIL POLICIES • Corporate Travel and Accommodation Policy – Employees and Contractors. • Expenses Reimbursement and Provision of Facilities for Mayor and Councillors Policy. 12 DELEGATIONS Not applicable. 13 COORDINATION & CONSULTATION Not applicable. 14 STAKEHOLDER IMPACTS Not applicable. 15 TIMING This Report is for the period of 1 July 2017 to 30 September 2017.


ITEM 5 (Continued) TRAVEL AND TRAVEL RELATED EXPENSES – COUNCILLORS AND STAFF 1 JULY – 30 SEPTEMBER 2017 HR829/02(P1) 16 CONCLUSION The attached summary of travel expenditure is submitted for the information of Council. The report lists activities undertaken by Council that require either airfares or accommodation for staff, contractors or Councillors to attend an event. All travel is subject to a formal approval process. Furthermore, there is regular corporate oversight through reports to the CEO and external disclosure via Council’s Annual Report. Overall, Council’s travel costs continue to amount to a very small percentage of Council’s overall annual budget i.e.0.0077%. 17 RECOMMENDATION It is recommended that Council resolves as follows: That the information contained in the report be noted. Author: Authorised by: Mark Farrell Glen Potter Acting Corporate Travel and Administration Officer

Director Organisational Services

06 November 2017

Item: # 65561937 Attachment A: # 65546926 Attachment B: # 65560582 COMMITTEE RECOMMENDATION GA17.1206.005 moved Cr Owen-Jones seconded Cr Gates That the information contained in the report be noted.

CARRIED


ITEM 5 (Continued) TRAVEL AND TRAVEL RELATED EXPENSES – COUNCILLORS AND STAFF 1 JULY – 30 SEPTEMBER 2017 HR829/02(P1)

As at:

From To Position Title Description Provider Venue Reg Fee** Travel Accom Other* Total Gross Cost

26/07/2017 4/08/2017 Chief Executive Officer Queens Baton Relay City of Gold Coast Canada 0 12,262 3,859 1,792 17,913

13/09/2017 14/09/2017 Energy Management Coordinator

Australian Smart Lighting Summit Conference Expotrade Australia Lighting Summit 2017

Melbourne 500 358 348 278 1,485

22/09/2017 24/09/2017 City Architect City of Melbourne Study Tour City of Melbourne Melbourne 0 617 414 197 1,229

500 13,238 4,622 2,267 20,626


6/07/2017 6/07/2017Project Manager - Major Coastal Business Meeting - Water Research Laboratory University of New South Wales Sydney 0 465 0 209 674

12/08/2017 16/08/2017Coordinator Transportation Assets

17th AAPA International Flexible Pavements Conference AAPA Melbourne 2,145 238 705 607 3,696

16/08/2017 17/08/2017 Traffic Infrastructure EngineerAustralian Institute of Traffic Planning and Management National Traffic & Transport Conference

Australian Institute of Traffic Planning and Management Melbourne 1,375 230 353 250 2,207

13/09/2017 14/09/2017 Senior Specialist Engineer Annual Australian Smart Lighting Summit Expotrade Australia Pty Ltd Melbourne 605 242 0 237 1,084

4,125 1,175 1,058 1,303 7,661


13/09/2017 16/09/2017 Librarian - Local Studies Oral History Australia Conference Oral History Australia and Oral History NSW

Sydney 705 210 783 372 2,071

20/09/2017 21/09/2017 Families And Children Officer Community Hubs and Partnerships Research Study Tour

Department of State Development Sydney 0 192 183 296 671

705 402 967 668 2,742

30 October 2017

Booking Comment**

Mayor's Approval

CEO Approval

CEO Approval

Total:

Total:

Booking Comment**

City Infrastructure

Community Services

Quarterly Travel Report Attachment A

1 July - 30 September 2017

CEO Office

Total:

Booking Comment**




22/09/2017 23/09/2017 Councillor Division 12 City of Melbourne Study Tour City of Melbourne Melbourne 0 626 174 135 935

0 626 174 135 935

Booking Comment**

CEO Approval

Total:

Council


17/07/2017 17/07/2017 Operational Training Officer Meeting Technical Advisory Committee Australian Industy Standards

Australian Industry Standards Sydney 0 269 0 83 352

24/07/2017 24/07/2017Executive Coordinator Asset Investment Planning Amos Business Meeting #2 Water Services Association of Australia Sydney 0 307 0 100 407

8/08/2017 9/08/2017Manager Customer Engagement

WSAA Customer Engagement and Network Meeting and WSAA Regulatory Forum Water Services Association of Australia Sydney 0 271 183 201 656

10/08/2017 10/08/2017Executive Coordinator Regulation And Investment WSAA Water Utility Regulators Forum Water Services Association of Australia Sydney 0 344 0 106 450

30/08/2017 2/09/2017 Catchment Liaison Officer Australian Coastal Restoration Symposium James Cook University Townsville 0 308 0 316 624

4/09/2017 5/09/2017 Manager Business Performance

WSAA FS & R Network Meeting Water Services Association of Australia Adelaide 100 280 181 118 680

11/09/2017 12/09/2017 Senior Source Control Officer WSAA Wastewater Source Management Network Conference

Water Services Association of Australia Sydney 400 277 482 229 1,389

13/09/2017 15/09/2017 Manager Service SustainabilityBusiness Meeting - Asset Planning, Resilience and Creation Network Meeting with WSAA Water Services Association of Australia Hobart 350 0 567 273 1,190

18/09/2017 19/09/2017Executive Coordinator Asset Investment Planning WSAA Amos Meeting # 3 Business Meeting Water Services Association of Australia Melbourne 0 242 154 198 594

850 2,298 1,568 1,625 6,341

Conference Speaker

Booking Comment**

Total:

Gold Coast Water & Waste



3/07/2017 4/07/2017 Events Officer Conference - Safety & Security at Public Venues and Events

Marcus Evans Sydney 2,907 258 414 228 3,808

5/07/2017 6/07/2017Coordinator Economic Development (GC2018 Trade And Investment)

Government Engagement for Games Time Business Program and Offshore QBR Missions - Business Meeting

City of Gold Coast Canberra 0 639 558 220 1,417

14/07/2017 14/07/2017Business And Investment Attraction Officer (Industry) Sydney Film Roadshow Event Business Meeting City of Gold Coast Sydney 0 314 0 81 395

18/07/2017 18/07/2017Executive Coordinator - GC2018 City Media Operations

Media Engagements for Promoting Gold Coast Commonwealth Games

City of Gold Coast Sydney 0 345 0 83 428

18/07/2017 18/07/2017 Coordinator Design Services Inception Meeting with ARM City of Gold Coast Melbourne 0 430 0 109 539

18/07/2017 18/07/2017 Coordinator Project Development

Inception Meeting with ARM City of Gold Coast Melbourne 0 430 0 108 537

20/07/2017 29/07/2017Strategic Advisor - Arts & Culture

Provision of high level strategic advice on the GC2018 Commonwealth Games Cultural Legacy Strategy

City of Gold Coast Gold Coast 0 409 1,665 370 2,443

21/07/2017 2/08/2017GC2018 Commonwealth Games Program Manager Queens Baton Relay Mission to Canada City of Gold Coast Canada 0 2,578 4,924 3,276 10,778

21/07/2017 4/08/2017Coordinator Economic Development (GC2018 Trade And Investment)

Queens Baton Relay Mission to Canada AUSTRADE Canada 0 3,498 6,441 2,609 12,548

24/07/2017 26/07/2017 Events Officer Australia Day Conference 2017 National Australia Day Council Adelaide 715 443 274 212 1,64427/07/2017 27/07/2017 Manager Major Projects Business Meetings - Cruise Ship Terminal Project City of Gold Coast Sydney 0 310 0 175 48527/07/2017 27/07/2017 Coordinator Major Projects Business Meetings - Cruise Ship Terminal Project City of Gold Coast Sydney 0 110 0 35 146

9/08/2017 11/08/2017 Senior Arts And Culture Project Officer

Darwin Aboriginal Art Fair Foundations Inaugural Indigenous Curators Program and Symposium

Darwin Aboriginal Art Fair Foundation Darwin 0 1,204 1,981 677 3,863

10/08/2017 11/08/2017 Executive Coordinator - Gc2018 City Media Operations

Media Engagement Meeting Commonwealth Games Unit Melbourne 0 310 153 148 611

15/08/2017 15/08/2017 Manager Major Projects Business Meeting - Cruise Ship Terminal City of Gold Coast Sydney 0 360 0 102 462

15/08/2017 15/08/2017 Coordinator Major Projects Business Meeting - Cruise Ship Terminal City of Gold Coast Sydney 0 360 0 0 360

30/08/2017 30/08/2017 Coordinator Major Projects Business Meeting - Australian Navy Base City of Gold Coast Canberra 0 541 0 0 541



City of Gold Coast Gold Coast 0 382 2,035 285 2,702

6/09/2017 7/09/2017 Team Leader Strategy & Strategic Projects

2017 Transition Communities National Summit Municipal Association of Victoria Melbourne 462 347 307 286 1,403

19/09/2017 20/09/2017Senior Economic Development Officer - Commonwealth Games

World Chambers Congress Trade Show 2018 City of Gold Coast Sydney 870 219 377 326 1,792

21/09/2017 22/09/2017Executive Coordinator - Gc2018 City Media Operations Business Meetings Various Locations - Sydney City of Gold Coast Sydney 0 313 142 268 724



City of Gold Coast Gold Coast 0 350 590 69 1,009

4,954 14,152 19,862 9,666 48,635

Booking Comment**

CEO Approval

CEO Approval

CEO Approval

G17.0613.016

CEO ApprovalCEO Approval

Total:

CEO Approval

CEO Approval

Economic Development & Marjor Projects





26/07/2017 27/07/2017 Manager Corporate Assurance CEB Audit Leadership Council Annual Forum 2017 CEB Global Sydney 0 200 170 262 632

10/08/2017 11/08/2017 Executive Coordinator Directorate Finance

Public Sector Forum 2017 Australian Institute of Company Directors

Canberra 295 326 163 294 1,079

15/08/2017 29/08/2017 City Solicitor City of Gold Coast Insurance Meetings City of Gold Coast London/Guernsey 0 9,080 2,506 1,560 13,146

16/08/2017 23/08/2017 Chief Operating Officer City of Gold Coast Insurance Meetings City of Gold Coast London/Guernsey 0 250 2,536 1,560 4,346

22/08/2017 23/08/2017 Executive Coordinator Legal Procurement Forum Asia Pacific 2017 Conference

Buying Legal Council and Lawcadia Sydney 0 223 394 153 770

6/09/2017 6/09/2017Executive Coordinator Risk, Security & Business Continuity

CEB 2017 Executive Meeting Series CEB Global Melbourne 0 219 154 152 525

295 10,299 5,922 3,981 20,497


17/07/2017 19/07/2017 Chief Procurement OfficerCIPS Australasia Conference and Supply Management Awards CIPS Australasia Melbourne 0 354 285 352 991

19/07/2017 21/07/2017Manager Business Innovation & Technology Services Conference Local Government Managers Australia Local Government Managers Australia Brisbane 0 0 330 98 428

24/07/2017 26/07/2017 Manager Customer Contact 2017 Government Service Design Conference IQPC Sydney 3,189 196 392 308 4,085

25/07/2017 26/07/2017 Strategy Planning & Innovation Coordinator

Australian Government Cloud Summit Akolade Sydney 1,429 309 382 425 2,545

14/08/2017 15/08/2017Manager Business Innovation & Technology Services CEB CIO Leadership Council Conference CEB Global Sydney 0 202 197 171 570

21/08/2017 22/08/2017 Risk and Compliance Analyst Gartner Security & Risk Management 2017 Conference

Gartner Group Sydney 2,778 206 185 264 3,432

7,395 1,267 1,769 1,618 12,050

Office of the Chief Operating Officer

Booking Comment**

CEO Approval

CEO Approval - while on private trip - requested by CEO to attend in his place/Council related expenses

Total:

Booking Comment**

Conference Speaker

Organisational Services

Total:




13/09/2017 16/07/2017 Senior Planner Advisor PIA State Conference : The Spirit of Planning Planning Institute of Australia Bundaberg 995 230 504 150 1,879

13/09/2017 16/09/2017 Senior Planner 2017 PIA State Conference (Qld) Planning Institute of Australia Bundaberg 1,395 438 402 188 2,423

22/09/2017 24/09/2017 Director Planning And Environment

City of Melbourne Study Tour City of Melbourne Melbourne 0 626 414 355 1,395

22/09/2017 23/09/2017 Manager City Planning City of Melbourne Study Tour City of Melbourne Melbourne 0 617 183 195 995

2,390 1,912 1,504 887 6,692

Reg Fee Travel Accom Other Total Gross Cost

Total: $21,215 $45,368 $37,444 $22,151 $126,179

CEO Approval

CEO Approval

Total:

Booking Comment**

Conference Speaker

CEO Approval

Planning and Environment

# This report provides information on attendance at business meetings, conferences, seminars and similar activities.* Other - includes daily allowances, cab charges, car hire and other minor costs.

** Registration - Includes conference registration or other costs required to attend the event.

*** Booking Comments - Where applicable a comment is made to clarify the details of the event attendance.



Attachment B

01 Jul 16 - 30 Sep 16

01 Jul 17 - 30 Sep 17

01 Jul 16 - 30 Sep 16

01 Jul 17 - 30 Sep 17

01 Jul 16 - 30 Sep 16

01 Jul 17 - 30 Sep 17

01 Jul 16 - 30 Sep 16

01 Jul 17 - 30 Sep 17

01 Jul 16 - 30 Sep 16

01 Jul 17 - 30 Sep 17

01 Jul 16 - 30 Sep 16

01 Jul 17 - 30 Sep 17

Community Services 7 2 $6,219 $705 $2,496 $402 $3,146 $967 $1,867 $668 $13,728 $2,742Councillors 6 1 $3,575 $0 $14,069 $626 $3,230 $174 $1,093 $135 $21,967 $935Economic Develop & Major Projects 16 22 $5,080 $4,954 $8,988 $14,152 $11,823 $19,862 $8,818 $9,666 $34,709 $48,635City Infrastructure 6 4 $1,740 $4,125 $0 $1,175 $1,547 $1,058 $1,233 $1,303 $4,520 $7,661Gold Coast Water 5 9 $1,518 $850 $1,463 $2,298 $1,654 $1,568 $1,123 $1,625 $5,757 $6,341Office of the CEO 6 3 $2,694 $500 $3,776 $13,238 $3,711 $4,622 $4,073 $2,267 $14,255 $20,626Organisational Services 2 6 $600 $7,395 $543 $1,267 $607 $1,769 $575 $1,618 $2,325 $12,050Office of the Chief Operating Office 0 6 $0 $295 $0 $10,299 $0 $5,922 $0 $3,981 $0 $20,497Planning and Environment 1 4 $0 $2,390 $0 $1,912 $185 $1,504 $62 $887 $247 $6,692Total 49 57 $21,426 $21,215 $31,336 $45,368 $25,903 $37,445 $18,844 $22,151 $97,509 $126,179

01 Jul 16 - 30 Sep 16

01 Jul 17 - 30 Sep 17

$0 $0$14,649 $0$19,171 $23,327

$0 $0$0 $0

$8,508 $17,913Office of the Chief Operating Officer $0 $17,491

$0 $0$0 $0

$42,328 $58,731

Community ServicesCouncillors

Total

Office of the CEO

Organisational ServicesPlanning and Environment

Gold Coast WaterCity InfrastructureEconomic Development & Major Projects

Total

Other

01 July - 30 September 2016 and 01 July - 30 September 2017Quarterly International Travel Comparison Summary Report

(This summary report provides information on international travel, but excludes events that have been funded externally)

Quarterly Travel Comparison Summary Report01 July - 30 September 2016 and 01 July - 30 September 2017

(This summary report provides information on attendance at business meetings, conferences, seminar and similar activities)

No. of Attendees Registration Travel Accom Total


ITEM 6 ORGANISATIONAL SERVICES PROPOSED PERMANENT RELOCATION OF ELECTRICITY SUBSTATION, SURFERS PARADISE PN91449/20/01(P1) Refer 7 page attachment 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT To advise Council of a request for the permanent relocation of an electricity substation onto Council’s freehold Lot 2 on RP841211, Trickett Street Surfers Paradise, the compensation deemed appropriate in the circumstances and for the revenue duly received to be allocated to the Cultural Precinct Reserve. 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION The City of Gold Coast holds freehold title to Lot 2 on RP841211, ‘Laws and Hamilton’ Park in Trickett Street, Surfers Paradise. Immediately to the north and across Trickett Street lies the ‘Spirit’ development site (Lot 1 on SP211927) which has approvals in place to enable a substantial mixed use development. Attachment 1 shows the location of each parcel of land. As a component of seeing that development occur, an electrical substation has been relocated from the Spirit site into Laws and Hamilton Park on a temporary basis, such that when the development is complete the substation would be, on current approved plans, relocated into a basement area of the Spirit site. In November 2016, consultants for the Spirit site requested consideration for the permanent retention of the electrical substation in Laws and Hamilton Park. The approach was based on a number of considerations: the electrical substation is public infrastructure better suited to location on easily

accessible public land; the substation does not solely serve the Spirit site, but a greater area of Surfers

Paradise; the substation can, if located in easily accessible public land, be more readily

maintained and augmented in the interests of the wider community; Energex was supportive of the proposal, provided the matter came at no cost. While there is no argument with any of the above, it is the case that a continuing existence of an electrical substation in Laws and Hamilton Park would have, at least to some extent, a diminution in the amenity of the parkland area. Additionally, it is also the case that the Spirit development site is enhanced to the extent that costs of relocation of the substation into the Spirit basement are avoided plus the area required for the substation could be put to alternative uses (eg additional car park/s).


ITEM 6 (Continued) PROPOSED PERMANENT RELOCATION OF ELECTRICITY SUBSTATION, SURFERS PARADISE PN91449/20/01(P1) The permanent retention of the electrical substation in Laws and Hamilton Park would require the City to grant an easement in favour of Energex. Such can be entertained under section 236 of the Local Government Regulation where the disposal of an interest in land to a government agency can occur without the need for public tender, subject to Council specifically resolving to do so in the first instance. However, it is not considered appropriate that the grant of such easement be at no cost. To this end, negotiations have occurred with the consultants for the Spirit site whereby both avoided costs of relocation of the substation and amenity impacts on Laws and Hamilton Park have resulted in general agreement that upon payment to the City of $120,000 in compensation plus costs of easement preparation and registration of $5,000, the City would be prepared to grant the required easement to Energex enabling the substation to remain in the park on a permanent basis. Subject to Council’s resolution on the above, the grant of ‘owner’s consent’ will be provided such that a permissible change of conditions application would proceed dealing with the specifics of amended plans for the Spirit site and amended landscaping plans for Laws and Hamilton Park (see Attachment 2 for indicative plans before and after for the substation if it is retained on site). As such, Council’s resolution on this item is primarily sought in terms of the process around the electrical substation remaining in Laws and Hamilton Park, while other aspects in terms of City Plan issues will ultimately return to Council for later ratification. Parks and Recreational Services Branch (P&RS) does not, however, support the retention of the substation in Laws and Hamilton Park. P&RS has the view that the substation was only intended to be temporary in nature and if had known that the substation would be permanent, would not have been supportive as it significantly erodes the amenity and useability of the park. Additionally, public open space is at a premium in Surfers Paradise and a significant deficiency exists: • Current provision lies at 0.9 ha / 1,000 persons; and • South East Queensland benchmarks provide for between 3.5 – 4.0 ha / 1,000

persons. P&RS also outline that population forecasts for 2031 include an additional 16,000+ persons for the Surfers Paradise area, where it is unaffordable for additional land to be acquired. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Supporting the delivery of Gold Coast 2020 A We plan for the future of the city

We make good choices that create a better future for the Gold Coast community. B We manage the city responsibly Our stewardship of the city provides value for money for ratepayers.


ITEM 6 (Continued) PROPOSED PERMANENT RELOCATION OF ELECTRICITY SUBSTATION, SURFERS PARADISE PN91449/20/01(P1) 7 GOLD COAST 2018 COMMONWEALTH GAMES IMPACT Not Applicable. 8 FUNDING AND RESOURCING REQUIREMENTS Subject to Council’s adoption of the resolutions in this report, net proceeds from the grant of the proposed easement are intended for inclusion in the Cultural Precinct Reserve. 9 RISK MANAGEMENT Not Applicable. 10 STATUTORY MATTERS Council’s adoption of the resolutions in this report will reflect compliance with the provisions of section 236 of the Local Government Regulation. 11 COUNCIL POLICIES Not Applicable. 12 DELEGATIONS Not Applicable. 13 COORDINATION & CONSULTATION Name and/or Title of the Stakeholder Consulted


Is the Stakeholder Satisfied With Content of Report and Recommendations (Yes/No) (comment as appropriate)

Cr Baildon Division 7 Councillor No objections received Ron Jacobs, Manager Parks & Recreational Services

Community Services Refer to comments included in the background of this report

14 STAKEHOLDER IMPACTS Not Applicable. 15 TIMING Not Applicable.


ITEM 6 (Continued) PROPOSED PERMANENT RELOCATION OF ELECTRICITY SUBSTATION, SURFERS PARADISE PN91449/20/01(P1) 16 CONCLUSION Consultants for the Spirit development site in Surfers Paradise have requested Council’s consideration for the permanent retention of an electrical substation in Laws and Hamilton Park in Surfers Paradise. In terms of current approvals, the substation is intended for relocation into the basement of the Spirit site as development of that site nears completion. If the electrical substation remains in the park on a permanent basis, the City would be required to grant an easement in favour of Energex. Energex has, however, advised that that the grant of such an easement would need to be at no cost. As noted in the background of this report, permanent retention of the electrical substation in Laws and Hamilton Park does have benefits for the Spirit site. Accordingly, negotiations have occurred such that for an upfront one-off payment of $125,000, the City would, upon Council resolution, grant an easement in favour of Energex for the relocation site. 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 To grant an easement in favour of Energex over the electrical substation site in Laws

and Hamilton Park, Surfers Paradise (Lot 2 on RP841211) consistent with the provisions of section 236 of the Local Government Regulation.

2 That consultants for the Spirit site be advised of recommendation 1, and that the grant of the proposed easement is subject to the payment to the City of the sum of $125,000 (both compensation and easement preparation/registration costs) in the first instance.

3 Subject to recommendations 1 and 2, the net proceeds which flow from the grant of the proposed easement be credited to the Cultural Precinct Reserve.

4 That upon finalisation of recommendation 2, ‘owner’s consent’ issue to the consultants for the Spirit site to enable a permissible change application to be lodged as alluded to in the background to this report.

Author: Authorised by: Brendan Madden Glen Potter Manager Property Services Director Organisational Services 21 November 2017 TRACKS REF: 65757749


ITEM 6 (Continued) PROPOSED PERMANENT RELOCATION OF ELECTRICITY SUBSTATION, SURFERS PARADISE PN91449/20/01(P1) Cr Owen-Jones declared that a real (or perceived) conflict of interest in this matter could exist (as per section 173 of the Local Government Act 2009) due to his involvement with Mark Lacey who contributed $900 to his 2016 re-election campaign, but that he had considered his position and was firmly of the opinion he could participate in debate and vote on this matter in the public interest. Cr Owen-Jones remained in the room

ADOPTED AS PRINTED COUNCIL MEETING 8 DECEMBER 2017 COMMITTEE RECOMMENDATION GA17.1206.006 moved Cr Crichlow seconded Cr Gates 1 That Council grant an easement in favour of Energex over the electrical

substation site in Laws and Hamilton Park, Surfers Paradise (Lot 2 on RP841211) consistent with the provisions of section 236 of the Local Government Regulation.




CARRIED

Cr Owen-Jones voted in the positive

COUNCIL MEETING 8 DECEMBER 2017 RESOLUTION G17.1208.020 moved Cr Tozer seconded Cr McDonald

That Committee Recommendation GA17.1206.006 be adopted as printed which reads as follows:- 1 That Council grant an easement in favour of Energex over the electrical

substation site in Laws and Hamilton Park, Surfers Paradise (Lot 2 on RP841211) consistent with the provisions of section 236 of the Local Government Regulation.




CARRIED


ITEM 6 (Continued) PROPOSED PERMANENT RELOCATION OF ELECTRICITY SUBSTATION, SURFERS PARADISE PN91449/20/01(P1)

Attachment 1



Attachment 2.1



Attachment 2.2



Attachment 2.3



Attachment 2.4



Attachment 2.5



Attachment 2.6


CLOSED SESSION LOCAL GOVERNMENT ACT 2009 AND SUPPORTING REGULATIONS PROCEDURAL MOTION moved Cr Owen-Jones seconded Cr Boulton That the Committee move into Closed Session pursuant to section 275 (1) of the Local Government Regulation 2012, for the consideration of the following items for the reasons shown:-

Item Subject Reason

7 State Of The Organisation Report (As At 30 June 2017) Staffing Matter

8 2017-18 Quarter One Report Rates And Water Debt Management

Prejudicial Matter

9 Sale Of Land Agenda Item November 2017 Prejudicial Matter

10 Local Government Act 2009 Compliance Matter Prejudicial Matter

CARRIED

PROCEDURAL MOTION moved Cr Owen-Jones seconded Cr Tozer That the Committee move into Open Session.

CARRIED Following resumption into open session Items 7 – 10 were moved and carried as shown on the following pages.


ITEM 7 OFFICE OF THE CHIEF EXECUTIVE OFFICER STATE OF THE ORGANISATION REPORT (AS AT 30 JUNE 2017) LG449/756/04/03(P1) Refer Attachment 1 - State of the Organisation Report - 30 June 2017 1 BASIS FOR CONFIDENTIALITY 1.1 It is recommended that this report be considered in Closed Session pursuant to

section 275 (1) of the Local Government Regulation 2012 for the reason that the matter involves industrial matters affecting employees.

1.2 That the report and attachment be deemed non confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171(3) and 200(5) of the Local Government Act 2009.

2 EXECUTIVE SUMMARY Not applicable. 3 PURPOSE OF REPORT The State of the Organisation Report (SOOR) provides Council with a review of performance in specified key areas, including some that extend beyond simply organisational performance (e.g. financial management). This report is presented by the CEO to Council annually as part of a commitment to good management and corporate governance. It is not required as part of any statutory obligation. 4 PREVIOUS RESOLUTIONS Ex minute GA17.0216.007

1 That the report and attachment be deemed non confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171(3) and 200(5) of the Local Government Act 2009.

2 That Council note the State of the Organisation Report as at 30 June 2016. 5 DISCUSSION

The State of the Organisation Report (SOOR) provides a detailed acquittal of important organisational data or results as at 30 June 2017. The following is a summary of key elements:

Customer contact

• Customer contact enquiries increase by 7 % to 4.3 million

• Over 80% of enquiries via online channels with 10% online growth experienced during the year

• All types of enquiries by inline channel reduced, with an overall reduction of 2%

• The total number of calls to Customer Contact reduced by 9%

• City website page views increased by 5 per cent, with page views for Online services increasing by 74%


ITEM 7 (Continued) STATE OF THE ORGANISATION REPORT (AS AT 30 JUNE 2017) LG449/756/04/03(P1)

• Customer satisfaction remained high and continued to demonstrate improvement on the previous year.

Development assessment

• Planning applications increased by 14% and building applications decreased by 2%

• 89% of decisions were made within the Integrated Development Assessment System (IDAS) timeframes

• There was a 5% decrease in MCU/ROL applications assessed via RiskSmart

People management

• As at 30 June 2017, the City had 3398.1 permanent FTE positions, which was a decrease of 58.6 FTE since 30 June 2016

• The average personal leave days per FTE were 12.2, which is slightly higher than the Australian Public Service (2015-16) at 11.5 (City average personal leave per FTE may be inflated as a result of the number of employees on longer term leave. A higher proportion of employees aged over 55 (27.5%) may also be a contributing factor)

• The total liability of accrued leave remained relatively static at $1.265 million

• Overtime expenditure decreased by 2.6 per cent

• The percentage of employees over 55 continues to increase and represented 27.5% of the workforce at 30 June 2017

• Permanent employee turnover rate increased by 2.9 per cent to 9.4 per cent in 2016-17

Work Health and Safety

• 1001 WHS incidents were recorded from 1 July 2016 to 30 June 2017, reflecting a 22.7 per cent increase, of which 9 were notifiable incidents

• Health and Injury Management triaged 1001 incidents. Of these, 52 cases required Health and Injury Management assistance and the development of a Suitable Duties Plan

• The Lost Time Injury Frequency Rate (LTIFR) at 30 June 2017 was 22.8, compared with 24.6 at June 2016

• The number of compensable days lost for 2016-17 reduced by 59.1% (to 2961 days) from the previous year, supported by the Immediate Injury Management program

Entertainment and hospitality

• Expenditure on entertainment and hospitality decreased by 1 per cent ($3993) compared with 2015-16

Corporate Travel

• Expenditure on employee travel decreased by 1.73 per cent



Revenue

• At 30 June 2017, the True Overdue Balance (i.e. the value of unpaid accounts which are past their due date) was $39,017,518 (3.2% of the total recoverable debt), representing a reduction of $1,667,115 compared with 30 June 2016

Enterprise Risk Management

• The number of Corporate Risks has increased by 2 since June 2016, with none identified as extreme

Business Continuity

• The number of Business Continuity Plans has remained stable, at 23 since June 2016

Corporate Reputation

• There were no findings of maladministration by the Queensland Ombudsman for the seventh consecutive year

• Administrative Action Complaints decreased by 11%, with 160 complaints finalised during the year

• 178,954 Penalty Infringement Notices (PIN) were issued, which is consistent with 2015-16. 5.8% (10,387) of PINs issued resulted in a waiver

• 11 new Privacy Complaints were received during the year, and 12 Privacy Complaints were finalised (one being carried over from 2015-16)

• Total press media reports increased by 142 in 2016-17, representing an increase of 8.7%. Favourable press media report ratios increased by 11%

• Since October 2016, ‘Our prosperous city’, in particular building and development topics, featured in the highest volume of press coverage with 215 reports. 122 (57%) of these were favourable

Financial management

• Annual revenue forgone in 2016-17 was $70,267,328 representing a 13.2% increase on 2015-16 figures

Fleet optimisation

• The number of Passenger vehicles has been reduced by 57% (112 vehicles) since 2013-14, supported by the introduction of the GPS system

• Heavy plant utilisation is generally performing well against set targets and industry benchmarks

• Light vehicle utilisation is operating at 99-100%

• Total vehicle, plant and equipment incidents have reduced by 12 per cent compared to 2015-16

• Traffic infringements have reduced by 48% from 2015-16 to 2016-17



6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND OPERATIONAL PLAN

Gold Coast 2020 B – We manage the city responsibly – our stewardship of the city provides value for money for ratepayers.

7 GOLD COAST 2018 COMMONWEALTH GAMES IMPACT Not applicable.

8 FUNDING AND RESOURCING REQUIREMENTS This report has been produced using existing internal resources.

9 RISK MANAGEMENT Not applicable.

10 STATUTORY MATTERS Not applicable.

11 COUNCIL POLICIES Not applicable.

12 DELEGATIONS Not applicable. 13 COORDINATION & CONSULTATION

Name and/or Title of the Stakeholder Consulted



Manager Corporate Assurance Office of the CEO Yes

Executive Coordinator Corporate Communication

Office of the CEO Yes

Manager Corporate Finance Office of the CEO Yes

Acting Manager Corporate Safety and Risk

Office of the CEO Yes

Manager Executive Services Office of the CEO Yes

Chief Procurement Officer Organisational Services Yes

Manager Customer Contact Organisational Services Yes

Manger People and Culture Organisational Services Yes


ITEM 7 (Continued) STATE OF THE ORGANISATION REPORT (AS AT 30 JUNE 2017) LG449/756/04/03(P1) Acting Executive Coordinator Revenue Services

Organisational Services Yes

Acting Manager City Development Planning & Environment Yes

Manager Fleet Organisational Services Yes

14 STAKEHOLDER IMPACTS Internal stakeholders have provided a significant contribution to the development of this report through provision and analysis of data and supporting commentary. 15 TIMING Not applicable. 16 CONCLUSION The State of the Organisation Report for 2016-17 highlights a number of positive results and trends including:

• the continued growth in the use of online services, with over 80% of customer enquiries now on-line

• customer satisfaction demonstrating continuing improvement • continuing reduction of debtor balances • year on year reduction of compensable days lost for 2016-17 by 59.1% (to 2961

days) from the previous year, supported by the Immediate Injury Management program

• reduction of passenger vehicles by 57%, supported by the introduction of the GPS system

• no findings of maladministration by the Queensland Ombudsman for the seventh consecutive year

The report also highlights a number of challenges which are being addressed, including:

• managing the continuing increase in customer enquiries, with over 4.3 million in 2016-17, while at the same time creating channel shift

• managing an ageing workforce, with 27.5% of employees over 55 years of age, compared to the Australian Public Service (2015-16) rate of 17.3%

• reducing the rate and severity of WHS incidents and improving the management and timeliness of return to work for injured workers


ITEM 7 (Continued) STATE OF THE ORGANISATION REPORT (AS AT 30 JUNE 2017) LG449/756/04/03(P1) 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That the report and attachment be deemed non confidential except for those parts

deemed by the Chief Executive Officer to remain confidential in accordance with sections 171(3) and 200(5) of the Local Government Act 2009.

2 That Council note the State of the Organisation Report as at 30 June 2017. Author: Approved by: Luke Wallace Dale Dickson Manager Executive Services Chief Executive Officer 27 November 2017

#63398791 Report # 62637826 Attachment

COMMITTEE RECOMMENDATION GA17.1206.007 moved Cr Tozer seconded Cr Taylor 1 That the report and attachment be deemed non confidential except for those

parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171(3) and 200(5) of the Local Government Act 2009.

2 That Council note the State of the Organisation Report as at 30 June 2017.

CARRIED UNANIMOUSLY

Table of Contents Executive Summary…………………..…………………………………………………………………………….166

1. Customer Contact...................................................................................................................................... 168 1.1 Customer Contact enquiries ........................................................................................................... 168 1.2 All inline channel enquiries ............................................................................................................. 168 1.3 All online channel enquiries ............................................................................................................ 169 1.4 Inline performance .......................................................................................................................... 169 1.5 Customer Satisfaction ..................................................................................................................... 171 1.6 Rating of City website pages .......................................................................................................... 172

2. Development Assessment ........................................................................................................................ 173 2.1 Planning and building applications ................................................................................................. 173 2.2 Building Applications ....................................................................................................................... 174 2.3 Planning assessment timelines ...................................................................................................... 175 2.4 Risk Smart applications .................................................................................................................. 175

3. People Management .................................................................................................................................. 176 3.1 Full time equivalent (FTE) positions ............................................................................................... 176 3.2 Commonwealth Games positions ................................................................................................... 177 3.3 Agency Hire Expense ..................................................................................................................... 178 3.4 Personal leave ................................................................................................................................ 179 3.5 Excess accrued leave ..................................................................................................................... 181 3.6 Overtime ......................................................................................................................................... 183 3.7 Gender and Age profile ................................................................................................................... 184 3.8 Employee turnover .......................................................................................................................... 186

4. Work Health and Safety ............................................................................................................................ 187 4.1 Reported WHS incidents ................................................................................................................ 187 4.2 Lost time ......................................................................................................................................... 189 4.3 High and extreme potential incidents ............................................................................................. 189 4.4 Workers Compensation .................................................................................................................. 190

5. Entertainment and Hospitality .................................................................................................................. 192 5.1 Expenditure by directorate .............................................................................................................. 192

6. Corporate Travel ........................................................................................................................................ 193 6.1 Employees ...................................................................................................................................... 193

7. Revenue ...................................................................................................................................................... 194 7.1 Debtor balances .............................................................................................................................. 194

8. Enterprise Risk Management ................................................................................................................... 197 8.1 Corporate Risk Movements ............................................................................................................ 197 8.2 Corporate Risk controls and mitigations ......................................................................................... 198

9. Business Continuity .................................................................................................................................. 199 9.1 Business continuity plans by directorate ........................................................................................ 199

10. Corporate Reputation ................................................................................................................................ 200 10.1 Queensland Ombudsman Reviews ................................................................................................ 200 10.2 Administrative action complaints .................................................................................................... 200 10.3 Penalty infringement notice reviews ............................................................................................... 201

748th Council Meeting 8 December 2017Governance & Administration Committee 6 December 2017Item 7 (Continued) State of the Organisation Report 2016-17

164Adopted Report

Attachment 1

10.4 Privacy complaints .......................................................................................................................... 202 10.5 Energy and water ombudsman complaints .................................................................................... 202 10.6 Internal audit report ......................................................................................................................... 203 10.7 Media sentiment ............................................................................................................................. 203

11. Financial Management .............................................................................................................................. 206 11.1 Financial ratios ................................................................................................................................ 206 11.2 Annual revenue forgone ................................................................................................................. 208

12. Fleet optimisation ...................................................................................................................................... 210 12.1 Fleet equipment numbers ............................................................................................................... 210 12.2 Heavy plant fleet utilisation ............................................................................................................. 211 12.3 Heavy vehicle fleet utilisation.......................................................................................................... 213 12.4 Externally hired heavy vehicle/plant utilisation ............................................................................... 214 12.5 Light vehicle fleet utilisation and optimisation................................................................................. 215 12.6 Corporate car pool utilisation .......................................................................................................... 216 12.7 Vehicle/plant/equipment incident trend ........................................................................................... 216


165Adopted Report

Attachment 1

Executive Summary About this report

The State of the Organisation Report (SOOR) provides an analysis of organisational performance in key management areas supporting effective corporate governance. Key trends during the 2016-17 year include:

1. Customer contact • Customer contact enquiries increase by 7 % to 4.3 million • Over 80% of enquiries via online channels with 10% online growth experienced during the year • All types of enquiries by inline channel reduced, with an overall reduction of 2% • The total number of calls to Customer Contact reduced by 9% • City website page views increased by 5 per cent, with page views for Online services increasing by 74% • Customer satisfaction remained high and continued to demonstrate improvement on the previous year.

2. Development assessment

• Planning applications increased by 14% and Building applications decreased by 2% • 89% of decisions were made within the Integrated Development Assessment System (IDAS)

timeframes • There was a 5% decrease in MCU/ROL applications assessed via RiskSmart

3. People management

• As at 30 June 2017, the City had 3398.1 permanent FTE positions, which was a decrease of 58.6 FTE since 30 June 2016

• The average personal leave days per FTE were 12.2, which is slightly higher than the Australian Public Service (2015-16) at 11.5 (City average personal leave per FTE may be inflated as a result of the number of employees on longer term leave. A higher proportion of employees aged over 55 (27.5%) may also be a contributing factor).

• The total liability of accrued leave remained relatively static at $1.265 million. • Overtime expenditure decreased by 2.6 per cent. • The percentage of employees over 55 continues to increase and represented 27.5% of the workforce at

30 June 2017 • Permanent employee turnover rate increased by 2.9 per cent to 9.4 per cent in 2016-17

4. Work Health and Safety

• 1001 WHS incidents were recorded from 1 July 2016 to 30 June 2017, reflecting a 22.7 per cent increase, of which 9 were notifiable incidents

• Health and Injury Management triaged 1001 incidents. Of these, 52 cases required health and injury management assistance and the development of a suitable duties plan

• The Lost Time Injury Frequency Rate (LTIFR) at 30 June 2017 was 22.8, compared with 24.6 at June 2016

• The number of compensable days lost for 2016-17 reduced by 59.1% (to 2961 days) from the previous year, supported by the Immediate Injury Management program

5. Entertainment and hospitality • Expenditure on entertainment and hospitality decreased by 1 per cent ($3993) compared with 2015-16.

6. Corporate Travel

• Expenditure on employee travel decreased by 1.73 per cent.

7. Revenue • At 30 June 2017, the True Overdue Balance (i.e. the value of unpaid accounts which are past their due

date) was $39,017,518 (3.2% of the total recoverable debt), representing a reduction of $1,667,115 compared with 30 June 2016

8. Enterprise Risk Management • The number of Corporate Risks has increased by 2 since June 2016, with none identified as extreme.


166Adopted Report

Attachment 1

9. Business Continuity • The number of Business Continuity Plans has remained stable, at 23 since June 2016.

10. Corporate Reputation

• There were no findings of maladministration by the Queensland Ombudsman for the seventh consecutive year

• Administrative Action Complaints decreased by 11%, with 160 complaints finalised during the year • 178,954 Penalty Infringement Notices (PIN) were issued, with 20,288 of those PINs (11.5%) resulting in

a review request. Of the review requests 9,054 resulted in the PIN ultimately being waived meaning that 5.8% of PINs issued were ultimately waived

• 11 Privacy Complaints were received, of which 12 were finalised • Total press media reports increased by 142 in 2016-17, representing an increase of 8.7%. Favourable

press media report ratios increased by 11% • Since October 2016, ‘Our prosperous city’, in particular building and development topics, featured in the

highest volume of press coverage with 215 reports. 122 (57%) of these were favourable.

11. Financial Management • Annual revenue forgone in 2016-17 was $70,267,328 representing a 13.2% increase on 2015-16

figures

12. Fleet Optimisation • The number of Passenger vehicles has been reduced by 57% (112 vehicles) since 2013-14, supported

by the introduction of the GPS system • Heavy plant utilisation is generally performing well against set targets and industry benchmarks • Light vehicle utilisation is operating at 99-100% • Total vehicle, plant and equipment incidents have reduced by 12 per cent since 2015-16 • Traffic infringements have reduced by 48% from 2015-16 to 2016-17.


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3.4 Personal leave


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Table 18: Average personal leave by age group

Average days taken per FTE

Age 2014-15 2015-16 2016-17 % Change

Under 25 7.9 7.4 9.2 24%

25-34 10.3 9.4 8.4 -11%

35-44 11.8 10.6 10.8 2%

45-54 10.7 11.1 12.1 9%

55-64 14.1 15.2 15.7 3%

65+ 26.9 22.3 22.1 -1%

Total 12.1 11.8 12.2 3% Source: chris21

Table 19: Average personal leave days comparison Industry Average days per FTE City of Gold Coast 12.2 Australian Public Service (2015-16) 11.5


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3.6 Overtime

The overtime expenditure includes labour cost payments in respect of general overtime. This data does not include allowances, penalties, higher duties allowance, and casual labour costs.

Table 22: Overtime expenditure by directorate ($)

Directorate 2013-14 $

2014-15 $

2015-16 $

2016-17 $

% Change

City Infrastructure 7,851,099 4,660,934 4,790,726 4,021,490 -16.1%

Community Services 3,253,436 3,031,387 2,891,131 2,323,679 -19.6%

EDMP 28,527 22,186 32,695 30,384 -7.1%

Gold Coast Water and Waste 2,671,678 2,492,267 2,135,022 3,221,190 50.9%

Office of CEO 84,911 88,845 73,841 83,679 13.3%

Organisational Services 687,385 2,476,891 2,548,013 2,490,363 -2.3%

Planning and Environment 88,468 267,462 208,183 175,701 -15.6%

TOTAL $14,665,504 $13,039,972 $12,679,611 12,346,486 -2.6% Source: chris21

Table 23: Overtime expenditure by branch (Total $) – ‘Top 6’

Directorate Branch Name 2015-16 2016-17 % Change

City Infrastructure City Maintenance 2,303,051 2,083,433 -9.5%

City Infrastructure Infrastructure Delivery 2,063,766 1,488,513 -27.9%

Community Services Health, Regulatory and Lifeguard Services 1,243,405 1,423,514 14.5%

Gold Coast Water and Waste Waste Management 1,075,026 914,174 -15.0%

Gold Coast Water and Waste Network Reliability 1,114,385 1,338,519 20.1%

Organisational Services Fleet 1,890,369 1,914,807 1.3% Source: chris21

Overtime expenditure continued to trend downwards with a 2.6 per cent decrease compared to 2015-16.

Gold Coast Water and Waste and Community Services reported the most significant percentage change in overtime expenditure with 50.9% and -19.6% respectively due to the restructure of the Waste Management branch from Community Services to Gold Coast Water and Waste.

City Maintenance, Infrastructure Delivery, Health Regulatory and Lifeguard Services, Waste Management, Network Reliability, and Fleet branches represented 74 per cent of overtime expenditure during 2016-17. These branches are key service providers and are impacted by adverse weather, extended working hours, rosters and unusual events.


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Leverage ratio (Debt Balance – Cash Assets) / Operating Revenue

The Leverage ratio measures Council’s ability to cover debt repayments over the long-term. Council is sitting comfortably above the minimum target indicating debt commitments can be met.

Adjusted operating surplus ratio (Operating Result + Depreciation Expense) / Operating Revenue

This ratio is the same calculation as the Operating Surplus ratio except that depreciation expense has been removed from the operating result to avoid the ratio outcome being clouded by accounting depreciation. Council is sitting comfortably above the minimum target set by QTC. This is an indication that sufficient operating revenue is being raised to meet expenses.

Debt service coverage (Operating Result + Interest Expense + Depreciation) / (Interest Expense + Prior Year Current Debt)

The Debt Service ratio measures Council’s ability to cover debt repayments in the short-term. Council is sitting comfortably above the minimum target indicating debt commitments can be met.

Asset renewal funding ratio NPV of Planned Renewals in 10 Year Forecast / NPV of Required Renewals in AMP

The Asset Renewal Funding ratio is a forward looking ratio comparing forecasted renewal expenditure to the required renewals in the Asset Management Plan. A result of 100% indicates that Council is adequately providing for asset renewals in the long term financial plan.

Asset consumption ratio Written Down Value of Depreciating Assets / Gross Value of Depreciating Assets

This ratio gives an indication of the ‘as new’ value remaining in Council’s infrastructure assets. A result of 69% indicates Council’s assets are still in relatively new condition. This helps to explain why required renewal expenditure in the AMP’s is well below straight line depreciation expense.

.


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Increased concessions in the following areas of foregone revenue occurred this year:

• Donations Water/Sewerage Rates - the expenditure associated with water rate donations to eligible organisations was higher than expected in 2016-17 due to higher water consumption levels. In particular, Metricon Stadium experienced a higher consumption in 2016-17 when compared to the previous year.

• Water and Sewerage Leakage Relief - The number of applications approved in 2016-17 was almost 21%

higher than the number of applications approved during 2015-16.Revenue Services had some unplanned staff vacancies during 2015-16, thus some level of backlog of applications was processed during 2016-17.

• Community Venues - the actual Community Centres forgone revenue significantly increased for 2016-17 due

to a number of contributing factors: growth in actual revenue beyond revenue forecasts; introduction of a new version of the booking system software and reporting functionality and realisation of full financial year impact of the value of free venue use for Queensland Health Immunisation Program delivered at various Community Centres in line with Council decision.

• Infrastructure Charges foregone - Not For Profit organisations - the increase in Infrastructure Charges

foregone (Not for Profit organisations) is the result of an 80% increase in the number of applications that received this consideration.


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Hours hired utilisation

With the exception of graders, heavy plant hours hired utilisation is close to, or exceeding set targets. The organisation’s fleet of graders has been gradually reducing over the past 10 years, reflective of the changing nature of work the City is required to undertake (changing from greenfield to brownfield sites). In response to this reduction in grader utilisation, and cognisant of the number of graders hours hired from external suppliers (as outlined below), one of the City’s existing units is currently being replaced with a smaller ‘carpark’ style grader. This is to meet customer demand for this type of machine and will see grader utilisation restored to set targets once delivered.

Operational utilisation

Heavy plant operational utilisation is close to, or exceeding set targets. Of note is the greater than expected operational utilisation of graders, which appears to conflict with reduced hours hired utilisation. This means that, despite graders not being on hire to the extent anticipated, customers are using them efficiently by maximising the time they are actually in use on various job sites.

It should be noted that landfill compactors are in use at various landfill sites for a full seven days per week, resulting in a percentage of greater than 100% when compared to the standard available hours figure of 2,125 (based on 5 days per week).

Benchmarking

Backhoes – backhoe utilisation is well below the IPWEA benchmark, however is slightly ahead of the external organisation figures. Given backhoes are meeting or exceeding all other utilisation measures, this is considered a fair result. Given the small number of hours backhoes are hired from external suppliers (refer below), this result is not expected to significantly change in future.

Excavators (>24T) – utilisation of large excavators is significantly ahead of both the IPWEA and external organisation benchmarks. Given the large number of hours large excavators are also hired from external suppliers (refer below), this result is expected to continue.

Excavators (<24T) – utilisation of small excavators is well below the IPWEA benchmarks and slightly below the figure from external organisations. While these machines are aligned with all other utilisation targets, and externally hired machines are used extensively (refer below) this is an area of concern and will be subject to review in the next quarter.

Graders – grader utilisation is well below all set benchmarks, which is symptomatic of the low hired utilisation figures for these machines. Action is already underway to address this outcome, with the replacement of a full size grader with a smaller ‘car park’ grader. This will see externally hired grader hours reduce and City owned grader utilisation return to expected levels.

Landfill compactors – utilisation of landfill compactors is well ahead of all set benchmarks, and is not expected to change in future.

Wheel/Track Loaders - utilisation of loaders is significantly ahead of both the IPWEA and external organisation benchmarks. Given the large number of hours loaders are also hired from external suppliers (refer below), this result is expected to continue.

Tractors - utilisation of tractors is well ahead of all set benchmarks, and is not expected to change in future.


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As per the downward trend in vehicle incident numbers, most incident types are reducing. Of note is the significant reduction in reversing related incidents over the period. This has been influenced by the installation (ongoing) of reversing cameras to light vehicles, and more recently heavy vehicles. Conversely, the increase in vehicles hitting objects is of concern, and actions to address this are shortly to be implemented.

Table 76: Vehicle/plant/equipment incidents by directorate and incident/employee ratio, 2016-17

Directorate Number of incidents Number of employees Incidents/employee ratio

City Infrastructure 199 1,103 18.0%

Organisational Services 75 779 9.6%

Community Services 90 1,032 8.7%

OCEO 23 295 7.8%

Gold Coast Water and Waste 44 577 7.6%

Planning and Environment 21 413 5.1%

EDMP 3 131 2.3%

Total 455 4,330 11.9%


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With the exception of Gold Coast Water & Waste, the top three directorates with the highest incident per employee ratio are the directorates with the highest numbers of outdoor staff (field based). Of note is the ratio for the OCEO (also noted in the table below). A suite of actions are shortly to be implemented to address ongoing incidents, in an effort to drive this trend downwards.

Table 77: Vehicle/plant/equipment incidents by directorate and incident/vehicle ratio, 2016-17

Directorate Number of incidents Number of vehicles (1) Incidents/vehicle ratio

OCEO 23 24 95.8%

Planning and Environment 21 34 61.8%

Community Services 90 219 41.1%

City Infrastructure 199 488 40.8%

Organisational Services 75 255 29.4%

EDMP 3 12 25.0%

Gold Coast Water and Waste 44 255 17.3%

Total 455 1,287 40.1%

Notes: (1) Count includes light vehicles, heavy vehicles and heavy plant only

There has been a 48% reduction in traffic infringements issued to staff over the reporting period. Note that this only includes infringements which are issued through camera recorded offences, as roadside issued infringements go directly to the driver. This encouraging trend is expected to continue with a suite of actions shortly to be implemented to proactively manage driver behaviour.


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Fleet Notes:

Fleet utilisation Utilisation is defined as the extent of use of a particular vehicle, item of plant or equipment. It is a key indicator in determining if a fleet asset is needed on a permanent or intermittent basis, and if the asset should be owned by the organisation or hired from external suppliers as required. There are a number of input factors and differing utilisation measures used to manage the City’s Fleet as outlined below: Number of items The number of items in each utilisation sample will not match the number of items currently in the fleet as shown in the table above, if any items in that asset class have been replaced during the reporting period. Asset utilisation calculations look at all items that were owned at any point during the period, whereas fleet numbers are calculated at a single point in time. Average available hours Available hours are calculated based on 8 ½ hours per day, 5 days per week, 50 weeks per year (factoring in public holidays), giving a maximum of 2,125 hours per annum. Available hours can vary if a fleet asset is owned for less than a full year period, thus reducing the average available hours across that asset class. This generally occurs due to scheduled replacement of fleet assets. Hours hired utilisation This is a means of measuring customer demand through comparison of the extent to which fleet assets are hired to internal customers during the period the organisation owns the assets. Average hours available (from above) are compared to the actual number of hours an asset is hired to customers, taken as an average across each asset class. Fleet hire revenue budgets are calculated based on set hours hired utilisation targets, and are listed in the following tables for information. Hours run utilisation (heavy plant and equipment only) This is a means of measuring the extent of use of a particular item of plant or equipment through comparison of the number of hours the plant or equipment was operational (i.e. switched on) during the period the organisation owns the asset. This is the measure most often used for benchmarking plant and equipment utilisation across similar organisations. Available hours (from above) are compared to actual annual hour meter readings, take as an average across each asset class. Kilometres travelled utilisation (heavy/light vehicles only) Similar to hours run utilisation (above), this is a means of measuring the extent of use of a particular vehicle through comparison of the annual kilometres travelled for the period the organisation owns the asset. This is the measure most often use for benchmarking vehicle utilisation across similar organisations. Operational utilisation (heavy plant and equipment only) This is a means of measuring customer effectiveness in using plant and equipment during the period for which they have them on hire. Hours hired utilisation (from above) is compared to actual annual hour meter readings, taken as an average across each asset class. Expected operational utilisation varies between different classes of heavy plant and equipment. This is based on the designed application of the machine. For example, a backhoe may attend a job site for a full day, but only be required to dig a trench at the start of the day and fill it in again at the conclusion of the day. In such circumstance, it is not generally cost effective to remove the machine from the site for the hours it is not in use. Fleet equipment operational expenditure budgets are calculated based (in part) on set operational utilisation targets, and are listed in the following tables for information. Externally hired equipment utilisation The gives an indicator of the degree to which the organisations plant hire demand is met through provision of City owned plant/equipment versus externally owned plant/equipment. It is measured by comparing City owned plant/equipment hours hired to externally owned plant/equipment hours hired by equipment category. This allows identification of any potential cost savings through insourcing/outsourcing of various types of plant/equipment. Benchmarking It is important to note that different classes of vehicles, plant and equipment, by their very nature produce differing levels of utilisation. As a result, the only valid means of measuring an organisations utilisational performance is through comparison to set industry benchmarks or similar external organisations. Benchmarking comparisons used this report been extracted from the Institute of Public Works Engineering Australia (IPWEA) industry benchmarks, Australian Bureau of Statistics (Australian vehicle use survey), and comparative information has been obtained from 22 other local government and utility organisations across Australia.


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For more information P 1300 GOLDCOAST (1300 465 326) W cityofgoldcoast.com.au


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ITEM 8 ORGANISATIONAL SERVICES 2017-18 QUARTER ONE REPORT – RATES AND WATER DEBT MANAGEMENT RV36/188/-(P14) Refer Confidential Attachment 1 1 BASIS FOR CONFIDENTIALITY 1.1 I recommend that this report be considered in Closed Session pursuant to section

275 (1) of the Local Government Regulation 2012 for the reason that the matter involves:

(h) other business for which a public discussion would be likely to prejudice the interests of the local government or someone else, or enable a person to gain a financial advantage.

I recommend that the report/attachment be deemed non-confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.

2 EXECUTIVE SUMMARY Not Applicable.

3 PURPOSE OF REPORT This report provides Council with an update of the arrears position of the rates, water and sundry debtor portfolios as at 30 September 2017. 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION 5.1 Current State Quarter one of the 2017-18 financial year realised the first stage of the implementation of the Local Government Platform (LGP) project. The rate notices for the July – December 2017 period were issued on 7 August with 95% of the City’s rateable properties being included in this issue. Subsequent issues have resulted in 99.9% of the entire portfolio issued a half yearly rate notice.

As with any major information system implementation, there have been some teething issues which are being addressed by the LGP project team while still continuing to implement further modules of the LGP. The allocation of the project resources has been prioritised on ensuring that rating data is maintained in both the Pathway system and the legacy systems to ensure business continuity.

The management of the water and sewerage rates continues from the existing Grange system with data being passed from the Pathway system to this system.

5.1.1 Rate and Water Arrears Table 1 (below) shows the comparison of levies raised for the first quarter of the previous year (2016-17) and the current year. The current financial year reflects a 3.0% increase for total rates levied with water levies increasing by 7.2% resulting in a 4.1% increase in total levies for the financial year to 30 September.


ITEM 8 (Continued) 2017-18 QUARTER ONE REPORT – RATES AND WATER DEBT MANAGEMENT RV36/188/-(P14)

Table 1 Comparison of Levies Raised

as at 30 September Year Rates Water Total

2016-17 $337,276,984 $118,912,386 $456,189,370

2017-18 $347,529,179 $127,483,177 $475,012,356

Council finished this quarter with $79.6M unpaid in relation to rates and water accounts. This data shows an increase of $22.4M in relation to the combined arrears when compared to 2016-17. Table 2 below reflects this data.

Table 2 Comparison of Outstanding Balances

as at 30 September

Year Rates Water Total Balance Outstanding %

2016-17 $39,362,503 $17,863,480 $57,225,983 11.5%

2017-18 $56,988,844 $22,616,731 $79,605,575 15.4% When compared to this time last year, the balance outstanding for water accounts increased from $17.9M to $22.6M while the rate debt increased from $39.4M to $57.0M. Confidential Attachment 1 shows the True Overdue % balances for each month within the 1st quarter since the 2013-14 financial year. The 1st quarter result of 13.6% sees an increase when compared to the same period last year (10.7%). This result, in part, can be attributed to issues encountered as part of the LGP implementation including the delayed issue of the initial water and rate notice for the year. In the 2016-17 year, water notices issued in the 1st week while rate notices issued in the 2nd week of July. In the current year, water notices issued in the 2nd week and rates issued in week 6. A backlog of property sales created as part of the data migration processes and the priority given to ensuring that rating data is maintained in both the Pathway system and the legacy systems has precluded the issue of rate reminder notices. It is not anticipated that rate reminder notices will issue until after the due date of the January to June 2018 rate notices has passed. The Advanced Recoveries Team continued to manage the cases outsourced to the debt recovery specialists. Payment Arrangements were again offered to customers who encountered financial difficulty and were unable remit full payment by the due date. Information relating to the payment arrangements for Rates has been requested and will included in future reports. The graphs below show the number and value of payment arrangements for water debtors for the first quarter of this and last financial year.



5.1.2 Sale of Land Action in accordance with previous Sale of Land resolutions has continued. An auction was held 17 August 2017 with three properties scheduled to be auctioned. Payment of the required amount was received for one of these properties 30 minutes prior to the commencement of the auction resulting in only two properties progressing. Both achieved a sale price greater than the reserve price and were sold under the hammer. 5.1.3 Accounts Receivable - Sundry Debts REDACTED

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

8,000

2016-17 2017-18

Number of Water PAs Created 1st Quarter

$5,250,000

$5,500,000

$5,750,000

$6,000,000

$6,250,000

$6,500,000

$6,750,000

$7,000,000

2016-17 2017-18

Value of Water PAs Created 1st Quarter


ITEM 8 (Continued) 2017-18 QUARTER ONE REPORT – RATES AND WATER DEBT MANAGEMENT RV36/188/-(P14) REDACTED


ITEM 8 (Continued) 2017-18 QUARTER ONE REPORT – RATES AND WATER DEBT MANAGEMENT RV36/188/-(P14) 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Theme Supporting the delivery of the Gold Coast 2020 B We manage the city responsibly Our stewardship of the city provides value for money for ratepayers 7 GOLD COAST 2018 COMMONWEALTH GAMES IMPACT Not applicable

8 FUNDING AND RESOURCING REQUIREMENTS Within existing approved budget. 9 RISK MANAGEMENT Not applicable. 10 STATUTORY MATTERS Local Government Act and Regulation. 11 COUNCIL POLICIES Debt Recovery Policy 12 DELEGATIONS Delegation 2021 states “To write-off or waive non-rate debt where the debt remains unpaid and there is a legitimate basis for deciding the outstanding amount is not legally or practically recoverable including but not limited to circumstances where a debtor is under an administrator, insolvent, bankrupt or deregistered.” This delegation also requires a report to be provided to Council on a quarterly basis. 13 COORDINATION & CONSULTATION Name and/or Title of the Stakeholder Consulted



Hardie Ryan A/Coordinator Receivables Management


Yes

Emily Barker Supervisor Debtor Management


Yes


ITEM 8 (Continued) 2017-18 QUARTER ONE REPORT – RATES AND WATER DEBT MANAGEMENT RV36/188/-(P14) 14 STAKEHOLDER IMPACTS All rate, water and sundry debtors who fail to make arrangements to satisfy their debt with Council will be pursued in a more expeditious manner. It is anticipated that this action will result in reduction of Council’s arrears position. This would be determined by the end of year arrears percentage. 15 TIMING Not applicable 16 CONCLUSION The implementation of the rate modules of LGP has caused disruptions to the rate and water debt recovery processes while the new software is stabilised. Debt recovery action continues in accordance with the adopted policy. The Sale of Land action is expected to continue to realise further reductions in the rate and water debt portfolio. 17 RECOMMENDATION It is recommended that Council resolve as follows: 1 That the report and attachment be deemed non-confidential except for those parts

deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.

2 That Council note that the combined rate and water arrears position as at 30 September 2017.

3 That Council note the position of outstanding Accounts Receivable (Sundry Debtors) debts as at 30 September 2017.

Author Authorised by: Leigh Jackson Glen Potter A/Executive Coordinator Revenue Services Director Organisational Services 27 November 2017 (TRACKS REF: 65794290) COMMITTEE RECOMMENDATION GA17.1206.008 moved Cr McDonald seconded Cr Boulton 1 That the report and attachment be deemed non-confidential except for those parts

deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.

2 That Council note that the combined rate and water arrears position as at 30 September 2017.

3 That Council note the position of outstanding Accounts Receivable (Sundry Debtors) debts as at 30 September 2017.

4 That Council note the replacement Attachment 1 included in the Committee Report.

CARRIED

748th Council Meeting 8 December 2017 Governance & Administration Committee Meeting 6 December 2017 Adopted Report 227


Attachment 1


ITEM 9 ORGANISATIONAL SERVICES SALE OF LAND FOR OVERDUE RATES RV36/188/-(P14) Confidential Attachment One – Potential Properties Sale of Land for Arrears of Rates 1 BASIS FOR CONFIDENTIALITY 1.1 I recommend that this report be considered in Closed Session pursuant to section

275 (1) of the Local Government Regulation 2012 for the reason that the matter involves other business for which a public discussion would be likely to prejudice the interests of the local government or someone else, or enable a person to gain a financial advantage.

1.2 I recommend that the report and attachments be deemed confidential documents and be treated as such in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009 and that the document remain confidential unless Council decides otherwise by resolution.

2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT This report is provided to enable Council to consider resolving to enact the Sale of Land provisions of the Local Government Regulation 2012 (Reg) to recover overdue rates and / or charges (rates). 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION 5.1 Properties recommended for sale of land In accordance with Section 140 of the Reg, if overdue rates have remained unpaid for at least 3 years for residential properties or if rates and charges were levied on vacant land or land used only for commercial purposes and the local government has obtained Judgment for the overdue rates or charges greater than one year, Council can, by resolution, place the subject land to public auction in order to recover the overdue rates. Confidential Attachment One relates to fifty-two (52) properties with a total debt exceeding $838,500 as at 27 November 2017. Table 1 below shows the dissection of the properties utilised as the owner’s principal place of residence (PPR) by division. Of the 52 properties proposed to be resolved, 35 are used as the owner’s principal place of residence owing overdue rates and charges of approximately $560,000.


ITEM 9 (Continued) SALE OF LAND FOR OVERDUE RATES RV36/188/-(P14) Table 1

Penalty interest continues to accrue on all overdue rates (including water) at a rate of 11% per annum compounding daily. As part of advanced recovery action taken to date, all reasonable attempts have been made to ensure that the affected land owners have been contacted and made aware of the overdue rates. These ratepayers have also been provided the opportunity to satisfy the debt (including any associated legal costs, if applicable). Council’s records have been noted reflecting the above and updated accordingly. REDACTED Should Council resolve to sell the affected properties, a Notice of Intention to Sell (NOITS) must be issued to the registered property owners and all interested parties as registered on the title as soon as practical following the resolution. Should Council resolve to enact the Sale of Land provisions of the Reg, it is intended that the NOITS will issue early in the new year.

Division PPR Total $ Number Division PPR Total $ Number

Divn Total $73,866 5 Divn Total $41,605 3 No $27,818 2 No $18,723 1 Yes $46,048 3 Yes $22,882 2 Divn Total $74,743 5 Divn Total $72,359 4 No $28,728 2 Yes $72,359 4 Yes $46,015 3 Divn Total $62,322 3 Divn Total $58,175 3 No $16,485 1 No $34,020 2 Yes $45,837 2 Yes $24,155 1 Divn Total $28,630 2 Divn Total $122,796 7 No $9,865 1 No $52,390 2 Yes $18,765 1 Yes $70,406 5 Divn Total $28,517 2 Divn Total $53,155 4 Yes $28,517 2 Yes $53,155 4 Divn Total $41,915 3 Divn Total $71,092 5 No $20,573 1 No $29,830 2 Yes $21,342 2 Yes $41,262 3 $838,541 52 Divn Total $109,365 6 No $39,993 3 Yes $69,372 3

08

09

10

11

13

14

TOTAL

02

01

07

06

05

04

03

PPR Dissection by Division


ITEM 9 (Continued) SALE OF LAND FOR OVERDUE RATES RV36/188/-(P14) This notice must state Council’s intention to sell the land in no less than 3 months but not exceeding 6 months from the date of effecting service upon the ratepayer. Other interested parties e.g. mortgagees etc, also have the opportunity to remedy the overdue rates in preference to the property proceeding to auction. Once the period specified in the NOITS has expired and, should the overdue rates remain unpaid, an Auction Notice must then issue providing full details of the proposed auction. REDACTED The Reg requires that Council must set a reserve price for the auction that is at least:

(a) the market value of the land (this value must be provided by a valuer who is registered under the Valuers Registration Act 1992 and who is not an employee of Council); or

(b) the higher of the following:

(i) the amount of overdue rates on the land;

(ii) the value of the land (i.e. the site value or unimproved value, whichever is applicable)

In the overwhelming majority of cases, option (b) will be used to set the reserve price. Option (a) will only be used where it is believed the market value of the land is significantly less than either the quantum of the overdue rates or the rateable valuation. Should the situation occur where a bid for the property does not meet the reserve price at auction, the property must be passed in. In accordance with S143(2) of the Reg, Council may choose to enter into negotiations with, but only with, the highest bidder. In the event the highest bidder submits an offer greater than the last bid received, Council may choose to accept the offer and effect the sale [S143 (3)]. Council has previously delegated this power to the Chief Executive Officer. It is important to note that should any property not sell through subsequent negotiations then, under S143 (4) of the Reg, Council is deemed the purchaser of the property at the reserve price with the proceeds to be applied as per S146 of the Regulation. However legal opinion has confirmed that where no bid is received at auction, Council is not bound to buy the land at the reserve price.


ITEM 9 (Continued) SALE OF LAND FOR OVERDUE RATES RV36/188/-(P14) In cases where Council has no desire to acquire the property, it is in Council’s interest to ensure the reserve price is the minimum allowable in order to minimise outlays in circumstances where Council is deemed to be the purchaser of the land. S146 of the Reg (Application of proceeds of sale) prioritises registered non-State encumbrances above only body corporate fees and the former owner. Previous experience shows that mortgagees and other secured creditors often pay the required amount to cease the auction process as their security over the property is extinguished by the sale of land process. To demonstrate that the ratepayers have sufficient time to prevent the auction occurring after the resolution has been made, only two (2) of the 199 properties covered by Council’s last “Sale of Land” resolution were required to be placed to auction. Another 4 properties are still awaiting the expiration of the mandatory timeframes as set by the Reg. By enacting the Sale of Land provisions of the Reg, Council is able to most effectively recover the overdue rates in a finite timeframe. After Council has resolved to sell the land, all associated costs incurred during this process are recovered either:

• when payment is received to end the process, or • when the property is sold and the sale proceeds are applied accordingly.

It is recommended that should Council resolve to sell these lands, that specialists in handling advanced recovery activity who also have conveyancing experience are engaged to progress the action required in accordance with the required legislative provisions. As mentioned above, the costs incurred with this action are fully recoverable. This will allow Council resources to remain focussed on other advanced recovery cases and not pass the financial burden to anyone other than the debtor concerned. Property Services have been engaged to review the properties where the resolution is being sought. Advice will be provided during the process to minimise the likelihood of Council acquiring any property that would not be beneficial to acquire. Furthermore, a review of any irregularities that may exist on the rate or water account has been undertaken i.e. an unusual peak with a high quarterly water reading. These properties have already been removed from the Sale of Land list attached and are under investigation for possible inclusion on future agenda items should the debt remain seriously overdue. It should be noted that there is a minimal risk to Council of having to write-off rates, charges and costs should the purchase price not be sufficient to cover, in priority:

• State encumbrances, • Costs of the sale, • Land tax, • Overdue rates and charges.


ITEM 9 (Continued) SALE OF LAND FOR OVERDUE RATES RV36/188/-(P14) 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Theme Supporting the delivery of the Gold Coast 2020 B We manage the city responsibly Our stewardship of the city provides value for money for ratepayers

7 GOLD COAST 2018 COMMONWEALTH GAMES IMPACT Not applicable

8 FUNDING AND RESOURCING REQUIREMENTS Budget/Funding Considerations Funding has been allocated in this year’s budget for this action. The associated costs are fully recoverable from the land owner concerned. However, there is an identified risk involved with this process in that Council may be deemed to be the purchaser of the land at the reserve price. No budget exists to fund the potential purchase of properties. Another risk is that the proceeds of a sale may not be sufficient to meet higher priority debts, Council’s sale expenses and the outstanding rates and charges. No budget exists to fund the write-off of outstanding rates and charges. Costs for Capital Works and Service Proposals

Not applicable People and Culture 9 RISK MANAGEMENT Property Services and Water Billing officers have provided advice with regard properties that may potentially present a risk of (i) not selling at auction, or (ii) realise a sale price insufficient to discharge all debts required by the Reg to be paid in priority to Council’s rate debt, or (iii) where there is a potential for the account to be impacted by Council’s Water and Sewerage Leakage Relief Policy. REDACTED 10 STATUTORY MATTERS Local Government Act 2009 - Chapter 4 Part 1 Section 95 Rates and Charges Local Government Regulation 2012 - Division 3 Selling or acquiring land for overdue rates or charges. 11 COUNCIL POLICIES Debt Recovery Policy.


ITEM 9 (Continued) SALE OF LAND FOR OVERDUE RATES RV36/188/-(P14) 12 DELEGATIONS Delegation 2085 grants the Chief Executive Officer the authority to act for Council should negotiations be required in the circumstance that any of the subject property fail to meet the reserve price. In this instance, Council may enter into negotiations with the highest bidder only and may accept an offer to secure a sale. Delegation 1725 grants the Chief Executive Officer the authority to sign a "Notice of Intention to Sell", that Council has, by resolution, decided under section 140 of the Local Government Regulation 2012 to sell land for overdue rates or charges. 13 COORDINATION & CONSULTATION Consultation is undertaken with City Property, Water Billing and Corporate Communications at the appropriate times. Right to Information (RTI) and Information Privacy (IP) Legislation 2009 Privacy is to be maintained by retaining personal information as confidential. 14 STAKEHOLDER IMPACTS External / community stakeholder Impacts The owners of the land involved in this action may feel as if they are being adversely

impacted. However, ample opportunity has been provided for the owner to satisfy the overdue rates. Should Council resolve to sell the land, there still remains every opportunity (minimum period of 3 months) for the owner of the land to stop the auction by making payment in full, inclusive of any associated costs.

For absolute clarity, once the resolution to place the property to auction is made no payment arrangements for these accounts will be granted until the overdue debt is liquidated. Other ratepayers of the city can feel assured that that Council is diligently collecting overdue rates.

Internal (Organisational) Stakeholder Impacts Not Applicable 15 TIMING Action should commence as soon as practicable to meet the legislative timeframes. 16 CONCLUSION Taking action in accordance with the Sale of Land provisions of Local Government Regulation is considered the most effective course of action open to Council to recover seriously overdue rates. This course of action is not considered lightly, however, under these circumstances it is believed to be an exercise of good government.


ITEM 9 (Continued) SALE OF LAND FOR OVERDUE RATES RV36/188/-(P14) 17 RECOMMENDATION It is recommended that Council resolve as follows: 1 That the report and attachments be deemed confidential documents and be treated as

such in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009 and that the documents remain confidential unless Council decides otherwise by resolution.

2 That, pursuant to Section 140(2) of the Local Government Regulation 2012, Council resolves to sell the lands described in Confidential Attachment One for overdue rates.

3 That the Chief Executive Officer be delegated the power to set a reserve price for each parcel of land that is in accordance with Section 143(1) of the Local Government Regulation 2012.

4 That the matter be referred to suitably qualified solicitors to action on Council’s behalf.

Author: Authorised by: Leigh Jackson Glen Potter A/Executive Coordinator Revenue Services Director Organisational Services 27 November 2017

ISPOT 65740436 COMMITTEE RECOMMENDATION GA17.1206.009 moved Cr Crichlow seconded Cr Taylor 1 That the report and attachments be deemed confidential documents and be

treated as such in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009 and that the documents remain confidential unless Council decides otherwise by resolution.

2 That, pursuant to Section 140(2) of the Local Government Regulation 2012, Council resolves to sell the lands described in Confidential Attachment One for overdue rates.

3 That the Chief Executive Officer be delegated the power to set a reserve price for each parcel of land that is in accordance with Section 143(1) of the Local Government Regulation 2012.

4 That the matter be referred to suitably qualified solicitors to action on Council’s behalf.

CARRIED

748th Council Meeting 8 December 2017 Governance & Administration Committee Meeting 6 December 2017 Adopted Report Page 235

ITEM 9 (Continued) SALE OF LAND FOR OVERDUE RATES RV36/188/-(P14) Pages 235 and 236 are REDACTED

748th Council Meeting 8 December 2017 Governance & Administration Committee Meeting 6 December 2017 Adopted Report Page 236

ITEM 9 (Continued) SALE OF LAND FOR OVERDUE RATES RV36/188/-(P14)


ITEM 10 GENERAL BUSINESS LOCAL GOVERNMENT ACT 2009 COMPLIANCE MATTER LG115/-/-(CF)

CHANGED COUNCIL MEETING 8 DECEMBER 2017 COMMITTEE RECOMMENDATION GA17.1206.010 moved Cr Tozer seconded Cr McDonald 1 That the Chief Executive Officer of the Council of the City of Gold Coast review

all directives issued in Confidential Attachment A to determine compliance with the Local Government Act 2009, Local Government Regulation 2012 and any other relevant legislation and complete a preliminary assessment in accordance with the complaints provisions of the Local Government Act 2009.

2 That the Chief Executive Officer provide a copy of the preliminary assessment of the complaint to the Director-General, Department of Infrastructure, Local Government and Planning together with a copy of Confidential Attachment A.

3 That Attachment A remains confidential. A division was called. For 3 Cr Tozer, Cr McDonald, Cr Owen-Jones Against 1 Cr Taylor Abstained 1 Cr Boulton Absent 2 Cr Crichlow, Cr Gates

CARRIED

COUNCIL MEETING 8 DECEMBER 2017 RESOLUTION G17.1208.021

That Committee Recommendation GA17.1206.010 be not adopted, but in lieu thereof reads as follows: That Attachment A remains confidential. A division was called. For 13 Cr Tozer, Cr Owen-Jones, Cr Caldwell, Cr Vorster, Cr Crichlow,

Cr Baildon, Cr O’Neill, Cr La Castra, Cr Boulton, Cr Gates, Cr PC Young, Cr Taylor, Cr Tate

Against 1 Cr PJ Young Abstained 1 Cr McDonald Absent 0

CARRIED BY SUPER MAJORITY

There being no further business the meeting closed at 11.31am.


These Pages

Numbered 1 to 315

Constitute The Adopted Report Of The Meeting

Of The Governance & Administration Committee

Held Wednesday 6 December 2017

748 Governance and Administration Committee 6 December 2017 Adopted Report

Documents