annualREPORT 2012/13

annualREPORT

2012/13

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Glenthompson

Heywood

Lismore

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Tarrington

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Ewens HillReservoirTank Hill

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32012/13 annual report

To be recognised for excellence in integrated water services.

To provide secure, safe, reliable and innovative integrated water services to communities in south-west Victoria.

Think It!• Becreative&innovative• Embracechange&newideas• Showinitiative• Risetothechallenge

Work It!• Acttodayfortomorrow• Deliver&addvalue• Getonboard&havefun• Listen,learn,share&grow

Own It!• Followthrough• Takeresponsibility• Walkthetalk• Celebrateoursuccesses

• Integrated water management

• Delivercustomervalue

• Maximisebusinessefficiency

• Ensurerobustdecisionmaking

• Maintainfinancialviability

• Groworganisationalcapability

Our vision

Our mission

Our strategic objectives

Our values

COnTEnTSVision, Mission, Strategic Objectives, values 3

Message from Chairman & Managing Director 4

Year in Review 7Wannon Water profile 7Capital expenditure 8Highlights 2012/13 9

Financial Summary 10Financial result 10Revenue & expenses 11Financial performance indicators 12Future challenges 13

Social Report 14Customer value 14Community Service Obligations 14Water consumption 15Growth of services 18Community engagement 18Employment and OH&S data 20

Environmental Report 22Environmental health 22Recycling water 22Biosolids reuse 23Greenhouse gas emissions 23Bulk entitlements 24

Corporate Governance 29Board of Directors 29Board and committee meeting attendance 31Board committees 32Corporate structure 33Legislative compliance 33

Financial Statements 36

Performance Report 71

Appendix 1 – Disclosure Index 77

Glossary of Terms 79

Index 81

©StateofVictoria,WannonWater,2013.

Thispublicationiscopyright.Nopartmaybereproducedbyanyprocessexceptinaccordance

with the provisions of the Copyright Act 1968.

4

ChaiRman and managing diRECTOR’S REPORT

WearepleasedtopresentWannonWater’s2012/13AnnualReport.ThereporthighlightsWannonWater’sachievementsoverthepast12months.

WannonWaterdeliveredastrongfinancialresultwithaprofitbeforetaxof$8.59million.Robustplanning,innovationandafocusonefficiencyareintegraltodeliveringaffordablewaterand sewerage services and supporting liveable and sustainable communities. In the reporting period, business efficiencies were deliveredwhichenabledWannonWatertosetwaterandseweragechargesatonepercentbelowthatauthorisedbytheEssentialServicesCommission.

WannonWatercompleted$24.11millionofcapitalworksinthepastyear,includingsignificantprogressontheconstructionofthePortlandWaterReclamationPlant,ourlargesteverinvestmentinPortland.AninnovativebrinereceivalfacilitywasconstructedinWarrnambool,providingasustainablesolutionfor receiving and treating saline trade wastes to support regional industries and economic growth across our region.

The corporation continued to deliver on environmental initiatives,increasingrecycledwaterusefrom12.5percentto18percent,reducingnon-revenuewaterby10percentandachieving100percentbiosolidsreuse.

WannonWatersubmitteditsWaterPlan2013-18totheEssentialServicesCommissionfollowingtheculminationofacomprehensivecommunityengagementprogramdrivenbyourcommitmenttomaintainingafinanciallyviablebusinessanddelivering value to customers. Through prudent planning we will absorb cost increases and deliver real price reductions for customerswhilecompleting$109millionofnewcapitalworksoverthenextfiveyears.

In2013/14,afurther$25.65millionofcapitalworkswillbeundertaken,includingcompletionofthePortlandWaterReclamationPlant,theDuttonWaysewerageschemeandtheWestPortlandseweragescheme.Wewillalsofocusonfurtherreducing the level of non-revenue water.

Our WorkSafe HomeSafe health and wellbeing program won theInstituteofPublicAdministrationAustralia(Victoria)‘LeadingtheWayinHealth,SafetyandWellbeingAward’.This was a welcome reward for our substantial investment in enhancingthewellbeingofourworkforceinrecentyears.

WannonWater’semergencymanagementresponsewasimplementedwhenafireattheWarrnamboolTelstraexchangecausedathree-weektelecommunicationsoutageacrosssouth-westVictoria,includingourtelemetrysystem.Theresponseofourworkforcetothiscommunicationscrisiswasoutstanding,theircommitmentandinnovationensuringthecontinuityofour business throughout the outage.

Our customers continued to express their satisfaction with WannonWater’sperformance,withthe2013customersatisfactionsurveyshowingwemaintaineda93percentsatisfaction rating.

WeareproudofWannonWater’sachievementsin2012/13and believe the corporation is well placed to meet its future challenges.WithsecuresupplysystemsinplaceandatalentedworkforcecommittedtoourThink It! Work It! Own It! values, wewillcontinueourquestforinnovationandefficiencywhilekeepingpricesaffordableforourcustomers.

In accordance with the Financial Management Act 1994,weattestthatWannonRegionWaterCorporation’sannualreportiscompliantwithallstatutoryreportingrequirements.

John Vogels Grant GreenChairman Managing Director 16 August 2013 16 August 2013


2012/13 aChiEvEmEnTS aT a glanCE

gOvERnanCE aChiEvEmEnTS

ECOnOmiC aChiEvEmEnTS

✔ WaterPlan2013-18submittedtotheEssentialServicesCommission

✔ OH&Ssystemcertificationmaintained

✔ ComprehensivecommunityconsultationprogramundertakenindraftingWaterPlan2013-18

✔ EnvironmentalManagementSystemISOcertificationmaintained

✔ HACCPwaterqualitymanagementsystemcertificationmaintained

✔ Newcorporatestrategicframeworkestablished

✔ Significantreductionsincorporaterisks

✔ KonongwootongReservoirembankmentstrengthened

✔ Riskmanagementframeworkreviewed

✔ Profitbeforetaxof$8.59million

✔ Favourablegearingratioof14.79percent

✔ Self-fundedtheannualcapitalworksprogram

✔ Completed$24.11millionofcapitalworks

✔ Brinereceivalfacilityconstructedtoreceivesalinetradewastes,therebygeneratingnon-regulatedincome

✔ Constructionofnew$13millionPortlandWaterReclamationPlantnearingcompletion

✔ Five-yearcapitalworksplanprojectsdeliveredontimeandwithinbudget

✔ ConstructionofDuttonWayandWestPortlandSewerageSchemesunderway

✔ 57kilometresofsewerpipeinspectedbyCCTVtoproactivelymaintainqualityofseweragesystem

6

EnviROnmEnTal aChiEvEmEnTS✔ RecycledwaterfacilityconstructedatWarrnamboolwaterreclamationplanttouse200megalitresofrecycled waterperyear

✔ Commencedcommercialphaseofaquaculturesewageproject

✔ PartneredwithRMITandtheSmartWaterFundtoconductresearchintobiosolidsmanagement

✔ FundedwaterwayhealthworkstohelptoprotectthreekilometresoftheGellibrandRiverriparianzone

✔ FloraandfaunamanagementplandevelopedforDunkeldWaterReclamationPlant

✔ Energydatabasetosupportenergyefficiencyprojectsfullyoperational

✔ 100percentofbiosolidsbeneficiallyreused

✔ CommencedsupplyingrecycledwatertotheMortlakePowerPlant

✔ Recycledwateruseincreasedfrom12.5percentto18percent

✔ 97housesconnectedtotheinnovativeWarrnamboolRoofWaterHarvestingscheme

✔ Non-revenuewaterreducedby10percent

SOCial aChiEvEmEnTS✔ Highcustomersatisfactionmaintained(93percentforresidentialandbusinesscustomers)

✔ Strongperformanceinmeetingserviceleveltargets

✔ DeliveredaonepercentpricereductiononEssentialServicesCommissionauthorisedpricesin2012/13

✔ Businesscontinuitymaintainedduringtheextendedthree-weektelecommunicationsoutagecausedby fireattheWarrnamboolTelstraexchange

✔ Awardedtwocertificatesofcommendationatthe2013SirRupertHamerAwardsfor excellence in records management

✔ E-billingcampaignlaunched,offeringcustomersemailbillingoption

✔ TwoemployeescompletedtheinauguralNationalOperatorCompetencyFramework

✔ SchoolmuraladdedtoJamesStreetPumpStation,PortFairy

✔ LostTimeInjuriesreducedby33percent

✔ Water It, Grow It, Cook Itkitchengardencompetitionheldforlocalschools

✔ 3,560drinkbottlesdistributedtocommunitygroups&1,417toPrepstudents

✔ Mentoring program commenced for emerging leaders

✔ Employeehealth&wellbeingprogramawardedIPAA(Victoria)Award

✔ SupportedtheFutureLeadersofIndustryprograminPortland

2012/13 aChiEvEmEnTS aT a glanCE


YEaR in REviEW

Manner of establishment and responsible Minister WannonWater(WannonRegionWaterCorporation)isVictoria’ssecondlargestregionalurbanwatercorporationbyserviceareaandisastatutorycorporationconstitutedon 1July2005undertheWater Act1989.

TheresponsibleMinisterfortheperiodfrom1July2012to30June2013wastheHon.PeterWalshMLA,MinisterforWater.

Objectives, functions, powers and dutiesWannonWater’sstatutoryfunctions,powersanddutiesare set out in the Water Act1989.Thesefunctionsincludethecollection,storage,treatmentanddeliveryofwater ;thecollectionandtreatmentofsewageandtradewaste;andwaterrecycling.

Inperformingitsfunctions,exercisingitspowersandcarryingoutitsdutiesWannonWatermustactasefficientlyaspossible,consistent with commercial practice.

WannonWater’sserviceareaextendsover23,500squarekilometresfromtheSouthAustralianborderinthewest,toBalmoralinthenorth,toLismoreintheeastandthelowerGellibrandRivercatchmentonthesouthcoast.

AssetsWannonWaterhas$600millionofassetsincluding:• 2,762kilometresofpipes• 37waterreservoirsandstorages• 31watertreatmentplants• 20waterreclamationplants• 190pumpingstations• 58watertanks.

Water systemsWannonWatersupplieswaterfromadiverserangeofwatersources, including surface water catchments, geothermal and shallow groundwater aquifers.

Ourwatersystemsinclude:• theOtwaysystem,sourcedfromtheGellibrandRiver

catchment(andgroundwater),whichsupplieswatertoWarrnambool,Simpson,Cobden,Camperdown,Glenormiston,Lismore,Derrinallum,Terang,Mortlake,Purnim,AllansfordandKoroit

• theGrampianssystem,sourcedfromstreamsinthesouthernGrampianscatchment,whichsupplieswatertoHamilton,Cavendish,DunkeldandTarrington(thissystemisaugmentedbywaterpipedfromRocklandsReservoirasrequired)

• theBalmoralsystem,sourcedfromRocklandsReservoirinthesouthernGrampians

• theGlenthompsonsystem,sourcedfromalocalcatchment and groundwater

• theDartmoor,Heywood,Peterborough,PortCampbell,PortFairy,PortlandandTimboonsystems,allsourcedfromthedeepDilwynAquifer

• Caramut,Casterton,Coleraine,DarlingtonMacarthur,Merino,PenshurstandSandfordaresuppliedwithwatersourced from shallow aquifers.

CustomersOurcustomerscomprise85percentresidentialcustomers,11percentbusinesscustomersand4percentruralcustomers.

Residential 35,163 5,343 46% 5,007 152

Business 4,642 3,666 32% 3,566 790

Rural 1,745 2,611 22% 2,498 1,496

Total 41,550 11,620 100% 11,071 280

Customer segment

Number of Customers

Total water consumption (megalitres)

Percentage of total consumption

3-year average consumption (megalitres)

Average consumption per customer 2012/13

(kilolitres)

8

Capital expenditureWannonWaterspent$24.11milliononcapitalworkstofurtherimprovethedeliveryofwater,sewerageandtradewaste services and service growth in south-west Victoria.

Thecapitalprojectswhereexpenditurewasgreaterthan$0.25millioninthereportingperiodincluded:

Project

YEaR in REviEW

Portlandwaterreclamationplantupgrade $14.78 $6.88 $1.59

Warrnamboolbrinereceivalfacility $3.70 $2.66 $0.03

WestPortlandseweragescheme $3.41 $2.08 $0.56

Warrnamboolwater&sewerageinfrastructureinWollastonRoad $1.59 $1.32 $0.09

DuttonWayseweragescheme $2.69 $1.15 $1.00

Warrnamboolwaterreclamationplantrecycledwaterinfrastructure $0.98 $0.89 $0.09

SCADAprojectstage3 $4.22 $0.86 $0.04

KonongwootongReservoirembankmentworks $1.37 $0.72 $0.03

PortCampbell-Timboonwatertransfermainreplacement $0.96 $0.71 $0.03

Terangbranchwatermainreplacement $1.09 $0.38 $0.25

WarrnamboolsewermainreplacementsinGilles&TimorStreets $0.34 $0.36 $0.01

Hamilton,sewerpumpstationandrisingmaininPetschelsLane $0.73 $0.25 $0.02

SouthWarrnamboolwatermainextension $0.40 $0.25 $0.02

Total project cost($ million)

2012/13 expenditure($ million)

Future commitments

($ million)


highlighTS 2012/13New brine facility supports regional growth

WannonWaterhasconstructedabrinereceivalfacilitytoprovide a sustainable solution for receiving and treating saline trade wastes to support regional industries and economic growth in south-west Victoria.

Thenew$2.7millionfacilityintheWarrnamboolindustrialestatereceivesbrineandothersaltytradewastestransportedtothesitebysomeoftheregion’slargestindustries,includingdairymanufacturing,theMortlakePowerStationandthemineralsandsprocessingplantatHamilton.

Theprojectprovidesalocalsolutionfordealingwiththebrineproducedasaby-productofoperationsconductedbylarge industries in south-west Victoria.

Oncereceivedatthenewtransferstation,thebrinesafelyenterstheexistingseweragesystemwhereitispipedtotheWarrnamboolwaterreclamationplantfortreatment.

Thisfacilityisdeliveringeconomicbenefitsfortheregionbyproviding significant cost savings for industries compared to the alternative brine disposal options.

Theprojectwasjointlyfundedbya$537,602RegionalInfrastructureDevelopmentFundGrantfromtheStateGovernment,WannonWaterandtheindustrialcustomerswhousethefacility.

ThenewfacilityreflectsWannonWater’scommitmentto delivering innovative solutions to support liveable and sustainable regional communities.

‘Leading the way’ in health and safety

WannonWater’sinnovative WorkSafe HomeSafe program capturedstate-wideattentionthisyearafterwinningtheprestigious‘LeadingtheWayinHealth,SafetyandWellbeingAward’atthe2013InstituteofPublicAdministrationAustralia(Victoria)Awards.

TheawarddemonstratesWannonWater’scommitmenttoworkplacesafetyandthehealthandwellbeingofouremployees,bothatworkandathome.

Inourviewahealthyworkforcecontributestobetterbusiness outcomes and through WorkSafe HomeSafe we strive toembedourapproachtohealthandsafetyasafundamentalpart of our culture.

DevelopedwithinputfromWesternDistrictHealthServices, WorkSafe HomeSafe includes an annual program launch, monthlyhealth-relatedthemes,promotionalactivities,employeehealthchecksandsupportfornationalhealthevents.

Sincetheprogramwaslaunchedin2011WannonWaterhasrecordedmanyhealthandsafetyimprovements,including:• a53percentreductioninthefrequencyofinjuries

requiringtimeoffwork• a one per cent overall reduction in absenteeism• numerousemployeesgivingupsmokingthrougha

WannonWater-sponsoredprogram• strongemployeeparticipationinawarenesssessions,

exerciseactivitiesandhealthchecks,withsevenemployeesreferredtotheirGPforskinspotsofconcern.

Theresponsefromouremployeeshasbeenoverwhelminglypositive. Our challenge now is to build on this success to furtherstrengthenthehealthandwellbeingofallemployeesinto the future.

TheawardalsorecognisedWannonWater’scommitmenttosharing its experiences with other water corporations and industrybodiestohelpthemachievesimilarhealthoutcomes.

Above: A truck delivers brine to the new facility where it enters the sewerage system for treatment.

Above Right: Deputy Chairman Rob Wallis, Chairman John Vogels, Manager People & Culture Simon Fleming and Managing Director Grant Green at the IPAA Awards night.

10

FinanCial SummaRY

WannonWaterachievedanetprofitbeforetaxof$8.59millionforthereportingperiod.Thiswasa$3.7millionimprovementonthepreviousyear.Themajorfactorsthatcontributedtotheresultwere:• an increase in revenue from service and volume charges • thereceiptofgrantsworth$1.7millionforthe

construction of infrastructure assets

• a$2.8millionreductioninoperatingexpenditurepartlyduetoefficiencysavings

• a$2.1millionreductionindepreciationandamortisationexpense.

Corebusinessrevenue 68,532 61,628 52,158 45,539 41,956

CapitalRevenue 921 12,730 802 1,060 729

Governmentcontributions 1,340 621 674 500 625

Otherrevenue 5,887 5,049 4,876 3,674 2,759

Total revenue 76,680 80,028 58,510 50,773 46,069

Operatingexpenditure 37,868 40,687 35,415 32,796 33,104

Depreciation&amortisationexpenditure 23,362 25,445 13,217 11,707 10,698

Financecosts 5,979 5,873 5,854 4,881 3,344

Otherexpenditure 878 3,112 2,602 890 509

Total expenditure 68,087 75,117 57,088 50,274 47,655

Net result before tax 8,593 4,911 1,422 499 (1,586)

Currentassets 21,048 16,249 14,435 13,991 17,836

Non-currentassets 579,303 576,182 560,728 555,174 512,660

Total assets 600,351 592,431 575,163 569,165 530,496

Currentliabilities 21,177 19,053 15,619 18,805 11,823

Non-currentliabilities 115,248 116,073 106,798 102,051 88,545

Total liabilities 136,425 135,126 122,417 120,856 100,368

Netcashflowsfromoperations 27,241 19,446 12,545 13,855 7,333

Paymentsforproperty,plantandequipment (includinginfrastructure) 24,106 30,820 17,070 46,450 30,124

Financial 2012/13 2011/12 2010/11 2009/10 2008/09Result ($’000) ($’000) ($’000) ($’000) ($’000)

Wannon Water maintains financial viability by applying sound business planning, managing financial risks and ensuring sufficient income is generated to meet operating costs and debt commitments.

Strategic objective: maintain financial viability


Our revenueTotalrevenuereducedby$3.35millionin2012/13comparedtothepreviousyear.However,excludingthecontributionofwatersupplyassetsworth$11.9millionrecognisedinthepreviousyear,totalrevenuewouldhaveincreasedby$8.55million.

Overallservicechargesincreasedby$4.2million(13.4percent)in2012/13,whileusagechargesincreasedby$2.5million(9.1percent).Usagechargesincreasedinpartdueto increased water demand, the result of lower than average rainfallintheregionduring2012/13.Grantsreceivedforcapitalworksandotherrevenueincreasedby$0.72millionand$0.84millionrespectively.

Our expensesTotalexpensesdecreasedby$7.03millioncomparedtothepreviousyear.

Thedecreaseislargelyduetoareductioninexpenditureonsuppliesandservicesof$1.92million(9.1percent)anddepreciationandamortisationexpenseof$2.08million(8.2percent).Employeebenefitsexpendituredecreasedby$0.90millionor5percent;however,expenditureinthepreviousyearincludedaprovisionfora$1.46millioncontributiontowardstheLocalAuthoritiesSuperannuationFunddefinedbenefitscheme.Excludingthis,anincreaseof$0.56million(3.1percent)wasincurred.

Our balance sheetProperty,plantandequipmentincreasedinvaluebyanet$4.32million.Thisincludeddepreciationof$23.36million.The$24.11millioninvestedincapitalworkswasfullyfundedbycashflowsfromoperatingactivities.Thisenabledinterest-bearingliabilitiestobereducedby$0.7milliontoabalanceof$88.8millionattheendofthereportingperiod.

Seweragecharges 42%Volumetric water usage charges 31%Fixedwaterservicecharges 14%Other income 8%Giftedassets 2%Governmentgrants 2%Newcustomer/developer 1% contributions

Depreciationandamortisation 35%Suppliesandservices 28%Employeebenefits 25%Borrowingcosts 9%Environmentalcontributionlevy 2%Netlossondisposalofassets 1%

Our revenue

Our expenses

12

Summary of financial performance indicators

FinanCial SummaRY

inTERnal FinanCing RaTiO

2008/09 2010/112009/10 2011/12 2012/13

23.56%

29.83%

73.50%

63.10%

113.47%

Theratiomeasurestheportionofcapitalworkspaidforfromoperatingcashflows.The2012/13resultindicatesthat100percentofcapitalworkspaymentswerefundedbycashreceivedfromoperatingactivities.Ithasimprovedsignificantlyonthepreviousyearduetoalowercashoutlayforcapitalworksandahigheramountofcashreceivedfromoperating activities.

inTEREST COvER - CaSh (times)

2008/09 2010/112009/10 2011/12 2012/13

3.5 4.3 3.5 4.9 6.2

Asinterestcostsremainedsteadyduring2012/13,anincrease in cash from operating activities received is the sole explanationforthe27percentincreaseonthepreviousyear.Theratioshowsthatcashreceivedfromoperatingactivitiesis6.2timesthatofinterestcostspaid.

gEaRing RaTiO (debt to assets)

2008/09 2010/112009/10 2011/12 2012/13

11.27%

13.95%

13.98%

15.10%

14.79%

Interest-bearingliabilitiesreducedby$0.7millionduring2012/13and,coupledwithanincreaseintotalassetsof$8million, the reduction results in a decline in the gearing ratio. Adeclineisafavourableresult,asalowratioprovidesapositiveindicationofWannonWater’slong-termliquidity.

inTEREST COvER - EBiT (times)

2008/09 2010/112009/10 2011/12 2012/13

0.5 1.1 1.3 2 2.7

The20percentimprovementonthepreviousyearissolelydue to the improved profit result in comparison to the previousyear.Thedecreasedlevelofexpenseshasresultedinahigherprofitthatcoversinterestcostsincurredby2.7times.


Significant changes in financial position during the yearThere were no significant changes in financial position during the2012/13reportingperiod.

Events subsequent to balance dateAtthetimeofprintingthisannualreportWannonWaterwasnotawareofanyeventssubsequenttobalancedatethatwouldsignificantlyimpactitsoperations.

Future challengesWannonWaterplanstoundertake$25.65millionofcapitalworksin2013/14,largelyfundedthroughcashflowsfromoperatingactivities.However,newborrowingswillberequiredtofundtheshortfalland,assuch,WannonWaterwillrefinancematuringborrowingsduring2013/14.

The2013/14financialyearisthefirstyearinthethirdregulatoryperiodandwillseethecompletionofseveralmajorprojects,includingtheWestPortlandandDuttonWaysewerage schemes and the Portland water reclamation plant upgrade.

Attestation on compliance with the Australian/New Zealand Risk Management Standard

I,JohnVogels,certifythattheWannonRegionWaterCorporationhasriskmanagementprocessesinplaceconsistentwiththeAustralian/NewZealandRiskManagementStandardAS/NZSISO31000-2009andaninternalcontrolsystemisinplacethatenablestheexecutivetounderstand,manageandsatisfactorilycontrolriskexposures.

TheAuditandRiskManagementCommitteeverifiesthisassuranceandthattheriskprofileoftheWannonRegionWaterCorporationhasbeencriticallyreviewedwithinthelast12months.

John VogelsChairmanWannon Water16 August 2013

14

SOCial REPORT

Wannon Water strives to deliver long-term value to customers by supplying water-related products and services that reflect customer expectations for quality, reliability and price.

Strategic objective: deliver customer value

Concessioncardrebates 2,641,712 2,581,979 2,345,036 2,258,560 1,906,875

Not-for-profitorganisationrebates 260,501 257,211 246,233 244,139 242,156

Utilityreliefgrantscheme 57,663 52,502 48,618 68,072 22,090

Waterusagelifemachinerebates 298 979 1,396 1,699 993

Hardshipreliefgrantscheme (Sewerageschemeconnections) 0 0 0 0 0

Total 2,960,174 2,892,671 2,641,283 2,572,470 2,172,114

Community Service Obligations 2012/13 2011/12 2010/11 2009/10 2008/09 ($) ($) ($) ($) ($)

Customer valueWannonWaterenhancedcustomervaluein2012/13bysetting water and sewerage prices at one per cent less than the pricesauthorisedbytheEssentialServicesCommissionwhilemaintaining levels of service to customers.

Anewe-billingoptionwasofferedforthosecustomerswhoprefertoreceivetheirWannonWaterbillbyemail.The“e-billing:anytime,anywhere”campaigngeneratedapositiveresponsefromcustomersseekingamoreconvenientmethodofbilldelivery,withasteadyuptakerecordedsincethelaunchof the campaign.

Community Service ObligationsWannonWaterprovidedthefollowingcommunityserviceobligationrebatesandgrantstoeligiblecustomers:

Customers experiencing financial hardshipWannonWaterprovidedtailoredassistancetocustomersinfinancialhardship,including:• encouragingcustomersreceivingCentrelinkpaymentsto

usetheCentrepayfacility• assisting customers to complete government-funded

rebate and grant scheme applications• providing information on how to reduce household water

consumption

• referring customers to a free independent financial counselling service

• waiving interest on overdue charges, providing relief for unexpected high water use, providing bonus credits and waiving long-term debt for customers in genuine financial hardship

• reducing fire service charges for not-for-profit organisations.


Numberofcustomersoninstallment paymentplans 2,561 2,028 1,574 1,608 1,516

Totalvalueofinstallmentpaymentplans($) 1,139,790 659,490 562,801 590,977 418,239

Flexible payment arrangements as at 30 June 2012/13 2011/12 2010/11 2009/10 2008/09

Water consumptionTotalwaterconsumptionincreasedby1.9percentto11,620megalitresin2012/13.

A secure water futureWannonWaterreleaseditsWaterSupplyDemandStrategy2012-2060inMarch2013.Thisstrategyidentifiedthebestmix of measures to maintain a balance between the demand forwaterandavailablewaterresourcesforoururbansupplysystemsnowandintothefuture. Theobjectivesofthisstrategyareto:• assesstheexpectedlong-termdemandforwaterbyboth

currentandfuturecustomersofWannonWater• determine the anticipated available water supplies to meet

this demand• identifyasuiteofwaterdemandreductionandwater

useefficiencyoptionsandassesstheseoptionsacrosseconomic, environmental, and social criteria

• identify,whereneeded,optionsfornewsourcesofwatersupplyandassesstheoptionsacrosseconomic,environmental, and social criteria

• articulate future actions.

Thisstrategysetsatargetofreducingresidentialwateruseperpersonperdayto154litresby2015,a13percentreductioncomparedto177litresperpersonperdayinthe2009/10baseyear.

The2012/13residentialwateruseperpersonperdaywas172litres,upslightlyonthepreviousyearduetowarmanddryweatherconditionsexperiencedacrossWannonWater’sservice area.

Flexibleinstallmentpaymentplanswereofferedtocustomerswhopreferredtopaybyregularinstallments.Thenumberofcustomersoninstallmentplansincreasedby21percentin2012/13.

Highwaterusage allowances 279 108,888 273 138,619 167 82,086 114 73,203Bonuscredit system 1,265 55,930 516 26,202 74 2,560 294 11,245Waiverof long term debt 101 32,263 101 50,708 5 5,025 17 3,974Fireservice not-for-profit hardshiprebate 7 8,537 7 8,537 7 8,537 3 1,560Total 1,652 205,618 897 224,066 253 98,208 428 89,982

Customer assistance

No. customers

2012/13

Total value 2012/13

($)

No. customers

2011/12

Total value 2011/12

($)

No. customers

2010/11

Total value 2010/11

($)

No. customers

2009/10

Total value 2009/10

($)

2009 2013

50

200

litre

s

100

150

2010 20142011

Observed WSDSTarget (13%reductionby2015)

20152012 2016

Residential water use (litres per person per day)

16

Warrnambool roof water harvesting projectThe benefits of integrated water management promoted in the StateGovernment’swaterpolicydocumentLiving Melbourne Living VictoriaareonshowatWannonWater’sinnovativeWarrnamboolRoofWaterHarvestingProject.

In2012/13,7.5megalitresofstormwaterwereharvestedfromtheroofsof97housesalreadyconnectedtotheinnovativeroofwaterharvestingsystem.

Overthenext20yearsthissystemwillprogressivelyexpandasdevelopmentoccursinWarrnambool’smainnortherngrowthcorridor.Theroofsofsome3,000newhomestobeconstructed will form an urban catchment that is expected to contribute471megalitresofwaterperyearintotheBrierlyBasin,whereitwillbetreatedattheWarrnamboolwatertreatmentplantforurbandrinkingwater.

Water consumption by city/town (megalitres)

SOCial REPORT

Allansford 304 53.7 40 43.6 7 15.3 351 112.6 106.4Balmoral 105 15.4 29 7.5 17 12.3 151 35.2 31.1BalmoralPipeline - - - - 2 6.2 2 6.2 3.6Camperdown 1,576 241.7 214 129.2 - - 1,790 370.9 317.0CamperdownRural - - - - 385 531.0 385 531.0 567.5Caramut 54 9.3 14 4.4 7 5.0 75 18.7 14.4CaramutPipeline - - - - 12 4.3 12 4.3 3.0Casterton 817 112.1 150 52.8 23 8.1 990 173.0 165.9Cavendish 67 8.5 23 2.3 4 1.1 94 11.8 10.0CobdenRural - - - - 19 20.0 19 20.0 20.2CobdenUrban 700 110.6 101 317.6 87 94.2 888 522.3 573.7Coleraine 512 60.3 86 21.5 15 7.4 613 89.3 89.1ColerainePipeline - - - - 3 0.4 3 0.4 0.1Darlington 19 2.4 3 0.2 - - 22 2.6 1.8Dartmoor 120 13.8 17 1.3 - - 137 15.1 13.8Dunkeld 302 51.9 52 17.7 28 10.3 382 80.0 60.0Glenthompson 96 8.1 27 1.1 8 1.0 131 10.2 12.1Hamilton 4,676 727.1 641 217.9 49 127.9 5,366 1,073.0 900.8HamiltonPipeline - - - - 41 20.0 41 20.0 17.0Heywood 644 98.8 102 41.5 7 2.6 753 142.9 127.0KonongwootongPipeline - - - - 51 53.7 51 53.7 43.6Koroit 682 100.0 56 88.2 2 1.4 740 189.5 162.8Lismore&Derrinallum 339 45.2 71 16.8 75 60.5 485 122.5 99.2Macarthur 140 16.4 36 3.3 2 1.5 178 21.2 17.4Merino 125 14.9 20 5.2 37 15.9 182 36.0 33.5Mortlake 569 87.9 114 44.1 5 1.8 688 133.8 106.5Noorat&Glenormiston 158 29.6 17 54.7 76 65.2 251 149.5 120.4NorthOtwayPipeline - - 1 9.1 449 1,361.1 450 1,370.3 1,354.2Penshurst 262 44.9 54 16.1 3 0.5 319 61.5 52.5Peterborough 297 20.8 14 11.6 7 8.8 318 41.2 43.4PortCampbell 252 25.8 43 29.9 - - 295 55.8 59.1PortFairy 2,011 271.2 224 345.5 2 0.2 2,237 616.8 590.2Portland 5,038 745.7 691 684.6 6 1.4 5,735 1,431.6 1,450.8Purnim - - - - 89 20.5 89 20.5 13.2Sandford 56 9.0 7 3.3 28 9.6 91 21.9 20.1Simpson 78 12.4 18 62.5 10 16.9 106 91.8 82.8Tarrington 133 23.8 5 2.0 17 5.7 155 31.5 26.7Terang 942 153.0 145 52.3 1 6.7 1,088 212.0 198.4Timboon 410 60.2 77 48.3 104 69.4 591 177.9 165.5TullichPipeline - - - - 7 1.5 7 1.5 1.3Warrnambool 13,679 2,168.3 1,550 1,330.0 30 24.9 15,259 3,523.2 3,377.6WillauraPipeline - - - - 30 16.7 30 16.7 17.5Totals 35,163 5,343 4,642 3,666 1,745 2,611 41,550 11,620 11,071

City/Town

Residential Customers

Non-Residential Customers

Rural Customers

Total Consumption

No. No. No. No.

3-Year Average Annual

Consumption (ML)

Volume (ML)

Volume (ML)

Volume (ML)

Volume (ML)


Non-revenue waterIn2012/13thetotalvolumeofnon-revenuewaterwas1,960.5megalitres.Thiswasareductionof227.1megalitres,downfrom2,187.6megalitresin2011/12.

Corporate water consumption Apartfromoffice-basedwateruse,consumptionatotherWannonWatersitesisdifficulttodetermineandcompare,asconsumptionincludesoperationalusage(attreatmentplants,etc.)aswellasemployeewaterusage.

Major customer water useLargenon-residentialcustomerwateruseisreportedundersection122ZJoftheWater Act 1989.

Customers by volume range

* Storm water is used for flushing toilets and watering gardens at the Gateway Rd office in Warrnambool.

EastDilwyn 274.9 3% 265.9 9% 245.0 -16% 293.1 7% 272.8 0%Grampians 1,284.5 10% 1,163.2 18% 983.0 -10% 1,090.4 -6% 1,161.1 -7%Other 162.0 20% 135.6 26% 107.7 -30% 154.7 -6% 165.3 -5%Otway 7,370.0 0% 7,348.9 9% 6,730.1 -7% 7,220.7 -6% 7,647.4 1%Tullich 322.0 0% 320.7 27% 252.7 -29% 356.8 -8% 388.3 -6%WestDilwyn 2,206.4 2% 2,167.7 4% 2,091.9 -8% 2,286.1 -9% 2,507.2 1%Totals 11,620 2% 11,402 10% 10,410 -9% 11,402 -6% 12,142 -8%

System

2012/13 Volume

(ML)Change

(%)Change

(%)Change

(%)Change

(%)Change

(%)

2011/12 Volume

(ML)

2010/11 Volume

(ML)

2009/10 Volume

(ML)

2008/09 Volume

(ML)

Water consumption by system (megalitres)

25GatewayRd,Warrnambool* 122 3,530.0 435 3.6 123

15TownsendSt,Portland 9 278.4 192 21.3 690

66GraySt,Hamilton 11 614.7 68 6.2 111

Total 142 4,423.1 695 4.9 157

200to300 2 1 2 1 0

300to400 1 1 1 2 3

400to500 1 1 1 1 0

500to750 0 1 1 1 2

750to1,000 1 0 0 0 0

Greaterthan1,000 0 0 0 0 0

Total no. of customers 5 4 5 5 5

Office location

Volume – ML per year

FTE(No.)

No. Customers

2012/13

Office space(m2)

No. Customers

2011/12

Water consumption

(kL)

No. Customers

2010/11

kL/FTE

No. Customers

2009/10

Water consumption

by office space(L/m2)

No. Customers

2008/09

18

SOCial REPORT

WarrnamboolCheese&Butter* Allansford Yes

FonterraMilkAustraliaPtyLtd Warrnambool Yes

AlcoaPortlandAluminumPtyLtd Portland Yes

FonterraAustraliaLimited Cobden Yes

MidfieldMeatInternationalPtyLtd Warrnambool Yes

Name of customer Location of customer Participation in water conservation program

Major customers’ participation in water conservation programsAllmajorcustomersofWannonWaterhavewaterconservationprograms.

Permanent Water Saving Measures and water restrictionsPermanentWaterSavingMeasuresappliedacrossallofWannonWater’sservicearea.Therewasnorequirementforhigherlevelwaterrestrictionsin2012/13.

Growth of water servicesWannonWaterprovideswaterservicestoresidential,commercial,industrialandruralcustomersacross34customerzones.Thetotalgrowthinthenumberofwatercustomerswas0.5percentin2012/13,with196newcustomersconnectedto a reticulated water service during the reporting period.

Growth of sewerage servicesWannonWaterprovidessewerageservicestoresidential,commercialandindustrialcustomersacross16seweragesystems.Thetotalgrowthinthenumberofseweragecustomerswas0.4percentin2012/13,with165newcustomers connected to a reticulated sewerage service in the reporting period.

ConstructionoftheDuttonWayandWestPortlandsewerageschemes progressed during the reporting period and both schemeswillbecommissionedin2013/14.

Engaging with our community WannonWaterrecognisesthatengaging,informing,consultingandcollaboratingwithitscustomersandotherstakeholdersis pivotal to understanding the needs of our customers andenhancingcustomervalue.Acomprehensiveprogramofcommunityconsultation,includingseekingfeedbackondiscussionpapers,customerforumsandcustomersurveys,wasundertakeninthepreparationofWannonWater’sWaterPlan2013-2018submissiontotheEssentialServicesCommission.

Customer Engagement CommitteeWannonWater’sCustomerEngagementCommitteeprovidesaforumforWannonWatertobetterunderstandtheneedsofitscustomersandthewidercommunity.Overthepastyearthecommitteeprovidedavaluablecontributiontothedevelopmentofpricingoptions,e-billing,paymentoptionsandinputtothepreparationoftheWaterPlan2013-2018.

Membersofthecommitteewere:• JohnWilken(Chair)• NathanAnderson• TimClingan• TomDoherty• AlexDupleix• JennieFairman*• GeorginaGubbins(Director)• RozGreenwood• LouHollis• JosephMilani• TomNieuwveld• GeorgeTyers• RussellWorland(Director)*Resigned in May 2013

*Warrnambool Cheese & Butter is supplied with non-drinking water.


Cultural heritageWannonWaterpreparedculturalheritagemanagementplansin accordance with the Aboriginal Heritage Act2006forthefollowingprojects:• DuttonWaySewerageScheme• WollastonRoad,Warrnambool,waterandsewerage

infrastructureproject.

WannonWatersoughtinputfromrelevantgroupsatthestartoftheseprojectstoidentifyculturalheritageneedsandexpectations.Consultantsundertookculturalheritagesurveysto ensure sites of cultural importance were identified and plans put in place to ensure their preservation.

WannonWaterliaisedwithRegisteredAboriginalPartyapplicantsGunditjMirringTraditionalOwnersAboriginalCorporation,KuuyangMaarAboriginalCorporationandEasternMaarAboriginalCorporation.CulturalheritageinductionsforcontractorsandWannonWateremployeeswereundertakenbythesecorporationsfortheDuttonWayandWollastonRoadprojects.

WannonWatercontinueditsconsultationwithGunditjMirringTraditionalOwnersAboriginalCorporationandotherstakeholdersinrelationtothelong-termmasterplanforthefutureofKonongwootongReservoirandrecognitionoftheGunditmarapeople’sassociationwiththesite.

20

At Wannon Water we are committed to growing our organisation’s capability by investing in skills development and the wellbeing of our employees.

Employment data

Employment and conduct principlesWannonWateriscommittedtoapplyingmeritandequityprincipleswhenappointingemployees.Theselectionprocessesensurethatapplicantsareassessedandevaluatedfairlyandequitablyonthebasisofthekeyselectioncriteriaandotheraccountabilities without discrimination.

Workforce statisticsThetotalnumberoffulltimeequivalentemployeesreducedbyfourin2012/13followingminorrestructuresoftheexecutiveteam and corporate communications.

InJune2013WannonWaterlaunchedanEmergingLeadersProgram as part of its commitment to developing a high performanceculture.Thisprogramprovides15futureleaderswith leadership training and participation in a structured mentoring program.

In2012/13WannonWaterprovided13,920totaltraininghours(66hoursperemployee)onemployeelearninganddevelopment.

Strategic objective: grow organisational capability

FemaleEmployees 41 16 0 57 27% 51

MaleEmployees 150 2 3 155 73% 153

Total 191 18 3 212 100% 204

FemaleEmployees 48 14 1 63 29% 58

MaleEmployees 149 3 2 154 71% 150

Total 197 17 3 217 100% 208

Full Time(No.)

Full Time(No.)

Part Time(No.)

Part Time(No.)

Casual(No.)

Casual(No.)

Total(No.)

Total(No.)

Total (percentage)

Total (percentage)

FTE

FTE

Notes: Excludes seven non-executive Board Directors appointed by State Government FTE refers to full time equivalent employees



2013

2012

Executive 5 6

Manager 24 24

Professional 19 21

Technical 31 31

Production&Maintenance 82 82

Administrative 43 44

Total 204 208

Employee Classification2012/13 (FTE)

2011/12 (FTE)


Occupational health & safety (OH&S)

WannonWater’sstrongOH&Sculturereflectsourcommitmenttothehealthandsafetyofallemployeesandcontractorsinvolvedinourbusiness.Inourview,thelinkbetweenpersonalwellbeingandworkinglifeisanintegralpartof this culture, and our internal health and wellbeing program hasbeensuccessfulinstrengtheningthislink.

This proactive initiative promotes diverse health and wellbeing themeseverytwomonths,coincidingwithnationalandworkplaceevents.Eachthemeincludeseducationsessionsandactivitiesavailabletoallemployees.Themesundertakenduringthereportingperiodincluded:• ergonomics&manualhandling• women’shealth• diabetes awareness• summer health• heart disease• exercise&fitness.

Inconjunctionwiththehealthandwellbeingprogram,WannonWatercontinueditsWorkSafe HomeSafe campaign throughout thereportingperiod.ThecampaignpersonalisesOH&Sforemployeesandseeksto:• alignOH&SwithinWannonWatertoakeymessage• beeasilyrecognisableandunderstandable• continuallypromoteWannonWater’ssafeworkmessage• linkworkplacesafetytoemployees’qualityoflife.

WorkSafe HomeSafe has gained momentuminrecentyearsandinFebruary2013theprogramwasawarded the Institute of Public AdministrationAustralia(Victoria)‘LeadingtheWayinHealth,SafetyandWellbeingAward’for

demonstrating leadership and continual improvement in creatingahealthy,safeandinclusiveworkenvironment.Formoreonthisaward,seethefeatureonpage9.

DuringthereportingperiodWannonWater’sOH&Smanagementsystemwasre-certifiedtotheAS/NZS4801standardfollowingauditsbyanexternalaccreditedauditingbody.

Improving the capacity of employees to manage OH&S effectivelyWannonWatercontinuedtoinvestinOH&Strainingin2012/13including:• confinedspaceentry• traintracksafetyawareness• mini excavator• driver education• traffic management• dogman• asbestos removal• chlorine handling• OHStechnicalsupporttrainingformanagers• spotters• OHSrepresentative• bullying&harassment• manual handling• construction induction.

Performance measuresWannonWater’skeyOH&SperformanceindicatorsarealignedwiththestandardssetoutintheworkplaceinjuryanddiseaserecordingstandardAS1885.1—1990.ForthereportingperiodbothLostTimeInjuries(LTIs)andtheLostTimeInjuryFrequencyRate(LTIFR)reducedby33percent.

LostTimeInjuries(Number) 2 3 3 5 6

LostTimeInjuryFrequencyRate (LTIFR-LTIoccurrencesperonemillionhoursworked) 6 9 9 16 20

LosttimeInjurySeverityRate(Days) 16 17 7 48 46

OH&S Indicators 2012/13 2011/12 2010/11 2009/10 2008/09

22

Our objective is to implement integrated water solutions using the range of water resources within our region to supply fit-for-purpose water products now and into the future.

EnviROnmEnTal REPORT

Strategic objective: integrated water management

Duringthereportingperiodfurtheradvancesweremadeintoreducing water losses and protecting our water supplies to supportliveableandsustainablecommunities.WannonWateralsoundertookprogramstoprotectandenhancethehealthofcatchmentwaterwaysandincreasedtheuseofrecycledwater.

Western Region Sustainable Water StrategyTheWesternRegionSustainableWaterStrategy,publishedbytheVictorianGovernmentinNovember2011,addressespressures on water resources, including climate change and landusechange.Itaimstoprovidesecurityforurbanandruralwaterusers,riversandaquifersovera50-yearplanninghorizon.

AkeytaskforWannonWaterarisingfromthisstrategyistoassessoptionstoimprovelowsummerflowsintheGellibrandRiver(Action7.3).WannonWaterisworkingwiththeCorangamiteCatchmentManagementAuthorityonthisproject.Theassessmentisexpectedtobecompletedby2014.

Regional Catchment Management StrategiesTheRegionalCatchmentManagementStrategiesoftheCorangamiteCatchmentManagementAuthorityandtheGlenelgHopkinsCatchmentManagementAuthorityprovidetheprimaryplanningframeworkforland,waterandbiodiversitymanagementacrossWannonWater’sservicearea.ThroughactionplansandregionalpartnershipsWannonWatercontinues to be a significant contributor to regional water managementoutcomes,particularlyintheGellibrandRivercatchment.

WannonWateralsoactivelycontributedtothenewRegionalCatchmentManagementStrategiesbeingdevelopedforourregion.

Victorian Biodiversity StrategyWannonWatercontinuestoworkonprojectsthatsupportimplementationoftheVictorianBiodiversityStrategy.Biodiversityandlandmanagementworkwasundertakenathighprioritysites,includinglandaroundreservoirs,watertreatment plants, water reclamation plants and other sites. Theworkwasdoneinpartnershipwithlocalagenciesandcontractors,includingtheGlenelgHopkinsCatchmentManagementAuthorityandCorangamiteCatchmentManagementAuthority.

Ongoing soil and groundwater monitoring programs are also inplacetoensureapplyingrecycledwatertofarmsisbeingmanagedsustainably.

AprojecttobetterunderstandthefloraandfaunaattheDunkeldWaterReclamationPlant,oneofthemostimportantsitesforbiodiversityunderourmanagement,wascompletedduring the reporting period. The information provides a baseline for future action and confirmed the presence and locationofPlumpSwampWallabyGrass,anationallylistedspecies.

Toincreasetheknowledgeofbiodiversityonoursites,WannonWaterfundedtwoprojectstoassessaquaticfaunaandflora.Theresearchincludessurveysat13sitesacrossourregion,covering water storages, sewage treatment lagoons and winter storages.Resultswillbeavailableinthecomingyearandwillhelp protect and improve the natural values at these sites.

Victorian River Health StrategyWannonWatercompletedthefifthyearofapartnershipwiththeCorangamiteCatchmentManagementAuthoritytoimprovewaterqualityandwaterwayhealthintheGellibrandRiverSpecialWaterSupplyCatchments.FundingbyWannonWaterthisyearhelpedprotectoverthreekilometresoftheGellibrandRiverriparianzoneupstreamoftheSouthOtwaypump station through willow removal, fencing and replanting.

WannonWatercompliedwiththerelevantEnvironmentProtectionAuthoritylicenceconditionsfordischargeofrecycledwatertostreamfromtheSimpsonwaterreclamationplant.

Recycling waterWannonWatercontinuestofocusonshiftingrecycledwaterfromalow-valueproductintoabeneficialresource.Recycledwater is used for agricultural, recreational and industrial purposes,includingasasupplytotherecentlycommissionedMortlakePowerStation.

Duringtheyear,infrastructurewasconstructedtosupplyrecycledwatertothebeltfilterpressesandscreeningplantattheWarrnamboolwaterreclamationplant.Thisnewrecycledwaterinitiativewillreducedrinkingwateruseby200megalitresperyear.

Thetotalvolumeofrecycledwaterreusedincreasedto1,570megalitres(18percent)in2012/13,anincreaseof321


megalitresfromthepreviousyear.Themajorityoftherecycledwater was used for agriculture over the summer irrigation periodandprocesswaterforindustry.

Aquaculture projectWannonWaterfurthereditsinnovativeaquacultureprojectbyestablishingafishhatcheryatWarrnamboolandconvertingobsoleteinfrastructureatHamiltonwaterreclamationplantintoajuvenilefishproductionfacility.Breedinghasbegunandfish produced from these facilities will be used in the sewage treatment process in lagoon-based water reclamation plants toreducetheaccumulationofsludge.TrialsattheHamiltonplant have shown that goldfish thrive on consuming and removing nutrients and sludge from sewage. This initiative has the potential to aid the treatment of sewage, reduce carbon emissions and reduce operating costs.

Biosolids reuseBiosolidsarenutrient-richorganicmaterialprocessedfromtreatedsewagesludge(thesolidcomponentsofsewageremovedduringtreatment).Thesludgeisgeneratedasaby-product of the sewage treatment process.

SludgeproducedatWarrnamboolandPortFairywaterreclamation plants was transported to the biosolids treatment facilityatCamperdownwherethesludgewasdriedandcomposted into biosolids for reuse on farms in the surrounding area.

WannonWater:• reused100percentofavailablebiosolidsbyapplying

3,016drytonnestolandasasoilconditioner,andasconstruction and landscaping material

• continuedresearch,inpartnershipwiththeSmartWaterFund,RMITUniversityandGippslandWater,toprovidedataonthemicrobialsafetyandnutrientstatusofbiosolidsproducedbylagoon-basedsystems.TheresearchaimstoinfluencearevisionoftheVictorianEnvironmentProtectionAuthorityBiosolids Land Application Guidelines for Environmental Management.

Greenhouse gas emissionsWannonWaterproduced30,586tonnesofgreenhousegasemissionsduringthereportingperiod,maintainingour10percentgreenhousereductiontargetcomparedtothe2006/07baseyear.

WannonWaterrecordedreductionsinemissionsfromsewagetreatment and water treatment.

WannonWaterisactivelypursuingenergyefficiencies,investigatingrenewableenergyoptions,andhascommencedamajorbenchmarkingexercisetoassessourpumpingandtreatmentplantefficienciesagainstindustrypeers.

Ournewenergydatabasetoolisnowfullyoperationalandhasenabledgreaterinsightintoenergyuseandenabledefficiencyprojectsacrossthebusiness.

WaterTreatment 13,680 16,984 9,923 12,946 15,247

SewageTreatment 15,371 15,271 17,178 18,053 24,280

Transport 832 829 801 864 849

Other(inc.officeenergyuse) 703 668 676 459 520

Reductions/Offsets 0 0 0 -1,588 -1,844

Total 30,586 33,753 28,578 30,734 39,052

Greenhouse gas emission by activity2012/13

(t CO2-e)2011/12

(t CO2-e)2010/11

(t CO2-e)2009/10

(t CO2-e)2008/09

(t CO2-e)

PERCEnTagE OF BiOSOlidS REuSE

2012/13 2010/112011/12 2009/10 2008/09

100%

100%

100%

100%

100%

SewageTreatment 50%WaterTreatment 45%Transport 3%Other 2%

24


Bulk entitlementAbulkentitlementisalegalrighttowatergrantedbytheMinisterforWaterundertheWater Act1989.

Bulkentitlementsarecommonlyheldbywatercorporationsto:• provideaclearlydefinedpropertyrighttowater• provideflexibilitytomanagewaterwithintheentitlement• provide a basis for sharing limited water resources,

protecting the entitlements of other users and protecting in-stream values

• facilitate water trading between user groups to ensure appropriate redistribution over time to finite water resources

• allow specific entitlements for environmental purposes.

WannonWateroperatesundersevensurfacewaterbulkentitlements, each containing provisions on minimum passing flowsandmaximumdailyextractionsfromwaterways.WannonWaterachieved100percentcompliancewiththeserequirementsin2012/13.

Summary of bulk entitlements 2012/13:

OtwaySystemConversionOrder 12,580 8,556.50 68.0 2,102.0

HamiltonConversionOrder 3,435 1,183.36 34.5 1,690.8

Coleraine,Casterton&SandfordConversionOrder 855 143.98 16.8 623.0

DunkeldConversionOrder 170 8.35 4.9 79.3

GlenthompsonConversionOrder 94 25.12 26.7 68.1

WimmeraandGlenelgRivers-WannonWaterOrder2010 2,120 84.72 4.0 4,117.0

WillauraSystemConversionOrder2012 58 20.07 34.6 N/A

Bulk entitlement

Volume of

entitlement (ML)

Volume extracted in

2012/13 (ML)

Percentage of bulk entitlement

extracted in 2012/13

Water in storage at 30

June 2013(ML)

Bulk Entitlement (Otway System) Conversion Order 1998

12.1(e)-approval,amendmentandimplementationofprogramsandproposalsunder

clauses8,9and11

12.1(f)-volumetaken2012/13

12.1(g)-anytemporaryorpermanenttransferofallorpartofthisbulkentitlement

12.1(h)-anybulkentitlementorlicenceinrespectofthewaterwaytemporarilyor

permanentlytransferredtothecorporationwithrespecttothesystem

12.1(i)-anyamendmenttothisbulkentitlement

12.1(j)-anynewbulkentitlementgrantedtothecorporationwithrespecttothesystem

12.1(k)-anyfailurebythecorporationtocomplywithanyprovisionofthisbulk

entitlement

12.1(l)-anydifficultiesexperiencedoranticipatedbythecorporationincomplyingwith

thisbulkentitlementandanyremedialactiontakenorproposed

Programs and proposals

implemented

8,556.50ML

Nil

Nil

Nil

Nil

Nil

Nil


Bulk Entitlement (Hamilton) Conversion Order 1997

Bulk Entitlement (Dunkeld System) Conversion Order 1997

12.1(d)-approval,amendmentandimplementationofprogramsandproposalsunder

clauses8,9and11

12.1(e)-volumetaken2012/13

12.1(f)-theamountin,creditedtoandtakenfromthedroughtreserve

12.1(g)-anytemporaryorpermanenttransferofallorpartofthisbulkentitlement

12.1(h)-anybulkentitlementorlicenceinrespectofthewaterwaytemporarilyor


12.1(i)-anyamendmenttothisbulkentitlement

12.1(j)-anynewbulkentitlementgrantedtothecorporationwithrespecttothesystem

12.1(k)-anyfailurebythecorporationtocomplywithanyprovisionofthisbulk

entitlement

12.1(l)-anydifficultiesexperiencedoranticipatedbythecorporationincomplyingwith


13.1(b)–waterlevelandstoragevolumeat30June2013

13.1(c)-volumetaken2012/13


clauses10,11and12

13.1(e)-anytemporaryorpermanenttransferofallorpartofthisbulkentitlement

13.1(f)-anybulkentitlementorlicenceinrespectofthewaterwaytemporarilyor


13.1(g)-anyamendmenttothisbulkentitlement

13.1(h)-anynewbulkentitlementgrantedtothecorporationwithrespecttothe

system

13.1(i)-anyfailurebythecorporationtocomplywithanyprovisionofthisbulk

entitlement

13.1(j)-anydifficultiesexperiencedoranticipatedbythecorporationincomplyingwith



implemented

1,183.36ML

520MLindroughtreserve;no

watercreditedtoortaken

Nil

Nil

Nil

Nil

Nil

Nil

216.20mAHD–79.3ML

8.35ML


implemented

Nil

Nil

Nil

Nil

Nil

Nil

26

Bulk Entitlement (Glenthompson) Conversion Order 1997


• GlenthompsonReservoir

• RailwayReservoir



clauses10,11and12






system


entitlement



307.62mAHD–50.6ML

294.30mAHD–17.5ML

25.12ML


implemented

Nil

Nil

Nil

Nil

Nil

Nil

Bulk Entitlement (Coleraine, Casterton and Sandford) Conversion Order 1997




clauses10,11and12






system


entitlement



272.60mAHD–623.0ML

143.98ML


implemented

Nil

Nil

Nil

Nil

Nil

Nil



Bulk Entitlement (Wimmera and Glenelg Rivers – Wannon Water) Order 2010

13.1(b)–volumetakenateachoftheoff-takepointsfor2012/13

13.1(c)–volumeandlocationofanywatertakenunderthisbulkentitlementatany

otherworksofWannonWater

13.1(d)–finalallocationtoWannonWaterfortheyearunderthisOrder

13.1(e)-approval,amendmentandimplementationofthemeteringprogramundersub

clause12.4

13.1(f)-anytemporaryorpermanenttransferofallorpartofthisbulkentitlement

13.1(g)-anybulkentitlement,licenceorwaterrighttemporarilyorpermanently

transferredtoWannonWatersupplysystemsunderthisOrder

13.1(h)-anyamendmenttothisbulkentitlement

13.1(i)-anynewbulkentitlementgrantedtoWannonWaterwithrespecttothe

WannonWatersupplysystemunderthisOrder

13.1(j)-anyfailurebythecorporationtocomplywithanyprovisionofthisbulk

entitlement

13.1(k)-anydifficultiesexperiencedoranticipatedbythecorporationincomplyingwith

thisOrderandanyremedialactiontakenorproposed

27.37MLtoHamiltonPipeline;

57.35MLtoBalmoral

Nil

2,120ML


implemented

Nil

Nil

Minoramendmentgazetted

on28March2013toaccount

fortheCommonwealth

Government’spurchaseof

an environmental water

entitlement

Nil

Nil

Nil

Bulk Entitlement (Willaura System - Wannon Water) Conversion Order 2012

10.1(b)–annualamountofwatertakenunderthisentitlementfor2012/13

10.1(c)–approval,amendmentandimplementationofthemeteringprogramapproved

undersubclause9.4

10.1(d)–anytemporaryorpermanenttransferofallorpartofthisbulkentitlement

10.1(e)-anybulkentitlement,licenceorwaterright,temporarilyorpermanently

transferredtoWannonWaterfortheWillaurasupplysystem

10.1(f)-anyamendmenttothisbulkentitlement

10.1(g)-anynewbulkentitlementgrantedtoWannonWaterwithrespecttothe

WillauraSystem

10.1(h)-anyfailurebyWannonWatertocomplywithanyprovisionofthisOrder

10.1(i)-anyexistingoranticipateddifficultiesexperiencedbyWannonWaterin

complyingwiththisOrderandanyremedialactiontakenorproposedbyWannonWater

20.07ML

Ameteringprogramincluding

Willaurahasbeendrafted.

Nil

Nil

Nil

Nil

Nil

Ameteringprogramhasbeen

drafted incorporating relevant

amendments, and is expected

tobefinalisedinAugust2013

28

WannonWaterislicensedtoextractgroundwaterfrom18localities.In2012/13,4,426megalitresofgroundwaterwereextracted for urban water supplies.

Nogroundwaterlicencesweretradedduringthereportingperiod.WannonWaterholdsnolicencesforManagedAquiferRecharge.

Groundwater licences


Warrnambool(AlbertPark)

Grampians(Bullawin)

Caramut

Carlisle

Casterton

Condah

CurdieVale

Darlington

Dartmoor

Heywood

Koroit

Macarthur

Mocamboro

Mortlake

Penshurst

PortCampbell

PortFairy

Portland

Total

BEE024155(1152971)

BEE026192(911313)

BEE021943(924563)

BEE029488(9016487)

BEE022551(885355)

4001451

904309

BEE021827(1082159)

9016786

900184

BEE029066(899038)

BEE021944(4001451)

BEE026109(903701)

BEE030858(907049)

BEE036146(914444)

BEE026252(904309)

890472

923621

750

1,102.30

50

2,150

1,000

N/A

2,150

10

170

333

524

130

100

295

250

1,009

1,026

6,222

17,271.3

382.9

3.7

32.4

263.3

506.2

0.0

0.0

3.4

25.4

179.1

3.4

37.6

0.0

31.0

99.8

345.4

645.6

1,866.8

4,425.9

Locality Licence No.Licence allocation

(ML)Volume extracted in 2012/13

(ML)


CORPORaTE gOvERnanCEBoard

WannonWater’sBoardcomprisessevenindependentnon-executiveDirectorsandoneexecutiveDirector,whoistheManagingDirector.Thenon-executiveDirectorsareappointedbytheMinisterforWaterinconsultationwiththeTreasurerfortermsuptofouryearsandtheVictorianGovernmentsetstheirremuneration.TheManagingDirectorisappointedbytheBoardinaccordancewiththeWater (Governance) Act2006.

TheBoardareresponsibleforoverallcorporategovernanceofWannonWater,including:• setting strategic direction, values, standards and policies• establishing goals for management and monitoring the

deliveryofstrategiesandtargets• monitoring the identification and management of business

risks• monitoring the performance of the corporation.

TheDirectorsbringtotheBoardanappropriatemixofskillsand experience.

John Vogels - Chairman Appointed1October2011

JohnisChairmanoftheBoard.Hehasalonghistoryofrepresentingsouth-westVictoria,servingasMayorofCorangamiteShirepriortoenteringparliamentasMemberforWarrnamboolin1999.

ForeightyearsJohnrepresentedtheregionintheLegislativeCouncilastheMemberforWesternProvince(2002-2006)andMemberforWesternRegion(2006-2010).ThroughouthisparliamentarycareerJohnheldshadowportfolios,includingLocalGovernmentandVictorianCommunitiesandAgriculture.

RunningadairyfarmatScottsCreek,Johnisaleaderinthelocalcommunity.HeisaformerPresidentandLifeMemberofTimboonandDistrictHealthCareServices.JohnwasalsoPresidentoftheTimboonBranchoftheVictorianFarmersFederationandwasamemberoftheTimboonAPEXclubformorethan20years.

JohnisChairmanoftheExecutiveRemunerationCommitteeandStrategicIssuesCommitteeandisanex-officiomemberoftheAuditandRiskManagementCommitteeandHealthandSafetyCommittee.

Robert Wallis – Deputy Chairman BSc (Hons), MSc, PhD, Dip. Ed Grad. Dip. Ed. Studs, Grad. Cert. Management, FAICD Appointed1October2007

RobwasappointedDeputyChairmanoftheBoardinFebruary2011.Robhasworkedinhighereducationfor38yearsandhasheldpositionsofProVice-Chancellor(RuralandRegional)atDeakinUniversityandProVice-Chancellor(Research)attheUniversityofBallarat.

RobhaspostgraduatequalificationsinScience,Educationand Management and has longstanding research interests invertebrateecology,environmentaleducation,sustainabledevelopmentandcommunityengagementinuniversities.

RobisaDirectorofParksVictoria,haspreviouslyservedasDirectoronotherBoardsandisaFellowoftheAustralianInstituteofCompanyDirectors.

RobisChairmanoftheAuditandRiskManagementCommitteeandisamemberoftheExecutiveRemunerationCommitteeandtheStrategicIssuesCommittee.

Grant Green – Managing Director MBA, Grad. Dip. Man., Dip. BS (Acc.), FCPA, MAICD Appointed1July2007

GrantwastheinauguralChiefExecutiveOfficerofWannonWaterfromSeptember2005untilbeingappointedManagingDirectorinJuly2007.HehasextensiveexperienceintheVictorianwaterindustry,includingundertakingvariousexecutivemanagementrolesatBarwonWaterandMelbourneWater.

Grantisanon-executiveDirectorofthesavewater!®AllianceIncorporatedandHorizon21Incorporated.HeisaFellowoftheInstituteofWaterAdministration,aFellowCertifiedPractisingAccountantandaMemberoftheAustralianInstituteofCompanyDirectors.

GrantisamemberoftheHealthandSafetyCommitteeandtheStrategicIssuesCommittee.

Rodney Coutts BCom, MBA, FCPA, CA, AFAIM, GAICD Appointed1July2010

Rodworkedasacharteredaccountantbeforeembarkingonalongcareerinhighereducation.Hehasundertakenavarietyofacademicandadministrativeroles,includingDeanofBusinessandDeputyDirectorattheformerWarrnamboolInstituteofAdvancedEducation,andDirectorofInternationalProgramsandHeadofCampusatDeakinUniversity.

30

Rod’sacademiccareerhasledhimtobusiness,academicandconsultancyrolesthroughouttheworld,includingCanada,Kenya,MalaysiaandtheFijiIslands.HehastaughtAccountingandAuditingsubjectsatseveraluniversitiesandhasaparticularinterest in fraud detection and deterrence.

RodisamemberoftheAuditandRiskManagementCommittee,theHealthandSafetyCommitteeandtheStrategicIssuesCommittee.

Katharine Fraser B Ec, GAICD Appointed1October2008

KatebringstoWannonWatermorethan20yearsofcommercialexperienceincorporatemarketingandcommunications.Herprofessionalexperienceincludesstrategicmarketingroleswithinthebanking,consumergoodsandhealthinsurance sectors and senior organising committee roles with several high profile international sporting events.

KaterunsaboutiquemarketingconsultancyandiscommerciallyinvolvedinfarmingnearPenshurst.KateisaGraduateoftheAustralianInstituteofCompanyDirectors.

KateisamemberoftheHealthandSafetyCommittee,theExecutiveRemunerationCommitteeandtheStrategicIssuesCommittee.

Georgina Gubbins BN, MAB, GAICD Appointed1October2011

GeorginapractisedasaRegisteredNursepriortoconcentratingonacareerinAgribusiness.

GeorginaholdsaMastersinAgribusinessandhasbeentheManagingDirectorofManerooPartnershipsince1994,aspecialistbeefandlambproducernearHeywood.Georginaemployssustainableandenvironmentalfarmingpracticesandextendstolocalwaterwayprotectionandtheestablishmentofwildlife corridors.

OverthepastdecadeGeorginahasservedonseveralAgriculturalAdvisoryCommitteesandisactivelyinvolvedinanumberofWarrnamboolsportingassociations.

GeorginareceivedanMLAGovernanceScholarshiptocompletetheAustralianInstituteofCompanyDirectorscourse.

GeorginaisamemberoftheHealthandSafetyCommittee,theStrategicIssuesCommitteeandtheCustomerEngagementCommittee.

Russell Worland Dip Public Admin (Local Government), GAICD, CM Appointed1October2011

RusselljoinstheWannonWaterBoardwithalonganddistinguishedcareerinthewaterindustry.

Russellspent19yearsastownclerkofHamiltonCityCouncilandwassecretaryoftheHamiltonWaterBoardfor20years.

In1995RussellwasappointedasChiefExecutiveOfficerofSouthWestWater,oneofthethreewaterauthoritiesthatmergedtoformWannonWaterin2005.

AwardedtheCentenaryMedalforhiscontributiontothewaterindustryin2002,RussellisaFellowoftheInstituteofWaterAdministrationandGraduateoftheAustralianInstituteofCompanyDirectors.

RussellhasbeenaDirectorofSouthWestHealthcaresince2009andrunsaconsultancybusinessthatprovidesstrategicplanning services.

RussellisamemberoftheAuditandRiskManagementCommittee,theStrategicIssuesCommitteeandtheCustomerEngagementCommittee.

Frank Zeigler Grad Dip Dis Mgt, MOHS, MAICD, CMSIA Appointed1October2011

FrankjoinstheBoardwithextensivebusinessandcommunityserviceexperience.Aformerpolicemanwithmorethan20years’experience,FrankwentontoserveasMayoroftheGlenelgShireCouncilandaMemberoftheMinisterialCrimePreventionCouncil.

FrankistheownerandChiefExecutiveOfficerofProfessionalDivingServicesandhasextensiveexperienceinOccupationalHealthandSafetyandwaterengineeringsolutions.

Withakeeninterestinmarineecologyandbushlandprotection,Frankvolunteersandleadsseveralcommunity-basedinitiatives.HeisalieutenantofthePortlandFireBrigade,aformerCountryFireAuthorityBoardMemberandaVolunteerFireBrigadeVictoriaBoardMember.HeChairsPortland’sHarbourWalkCommunityGroupandthePortlandEcoTrust.

FrankisChairmanoftheHealthandSafetyCommitteeandisamemberoftheAuditandRiskManagementCommitteeandtheStrategicIssuesCommittee.

CORPORaTE gOvERnanCE


Director attendance at Board and committee meetings

Attended Attended Attended Attended Attended Attended

JohnVogels 11of11 5of5 2of2 3of3 2of2 2of2

RodneyCoutts 11of11 5of5 1of1 3of3 2of2 2of2

KatharineFraser* 5of11 - 1of1 2of3 1of2 0of2

GrantGreen 11of11 - - 3of3 1of2 2of2

GeorginaGubbins 11of11 2of2 - 3of3 2of2 2of2

RobertWallis 10of11 5of5 2of2 2of3 - 2of2

RussellWorland 11of11 5of5 - 3of3 - 2of2

FrankZeigler 10of11 2of3 - 3of3 2of2 2of2

Board

Audit & Risk Management Committee#

Executive Remuneration Committee#

Strategic Issues Committee

Health & Safety Committee#

Water Plan Committee

*Director Fraser was on leave of absence from 1 April 2012 to 31 January 2013.#Committee memberships changed in October 2012.

Board meetings

Boardmeetingsarescheduledmonthly.MinutesofmeetingsrecordBoarddecisionsandsummaryoutcomesarepublishedontheWannonWaterwebsite.

Directorsreceivecustomerandotherstakeholderfeedbackthrougharangeofmechanisms,includingtheCustomerEngagementCommittee,directcustomerandstakeholderengagement,customersurveys,communityconsultationandproject-basedcustomercommittees.

Ethical standards

TheBoardacknowledgestheneedfor,andcontinuedmaintenance of, the highest standards of corporate governance practiceandethicalconductbyDirectors,employeesandcontractors.TheBoardhasacomprehensivegovernanceframeworkthatseekstoensurehighstandardsofethicalbehaviourthroughpoliciessupportedbyspecificawarenessandcomplianceprograms.Thegovernanceframeworkisregularlyreviewed,withthemostrecentreviewoccurringinJune2013.

TheDirectors’CodeofConductissuedbythePublicSectorStandardsCommissionerprovidesguidancetoDirectorsforcompliance with the public sector values and good governance practice.TheBoardreviewedtheInstrumentofDelegationforfinancialandnon-financialdecisionmakingduringthereportingperiod.

Pecuniary and conflict of interest declarations

Directorsandmanagerscompleteddeclarationsofpecuniaryinterestandpotentialconflictsofinterestduringthereportingperiod.

Independent advice

TheBoardensuresthatindependentjudgmentismaintained.DirectorsareentitledtoseekindependentlegaladviceonmattersrelatingtothebusinessofWannonWateratthecorporation’sexpense,subjecttoconsultationwiththeChairman.NoDirectorexercisedthisrightduringthereporting period.

32

Board committees

TheBoardhasfivecommitteestoassisttheBoardincarryingoutitsresponsibilities:• AuditandRiskManagementCommittee• ExecutiveRemunerationCommittee• HealthandSafetyCommittee• StrategicIssuesCommittee• WaterPlanCommittee.

Audit and Risk Management Committee

TheAuditandRiskManagementCommitteeprovidesindependentassuranceandadvicetotheBoardonWannonWater’srisk,controlandcomplianceframeworkanditsexternalaccountabilityresponsibilities.Thecommitteemeetswiththeinternalauditor,RSMBirdCameron,andtheexternalauditor.

Asat30June2013thecommitteecomprisedfournon-executiveindependentDirectors–RobertWallis(Chairman),RodneyCoutts,RussellWorland,FrankZeigler–andanindependentexternalmember,StevenBird.

Executive Remuneration Committee

TheExecutiveRemunerationCommitteeoverseessuccessionplanning and remuneration policies and practices for executive employmentinlinewithGovernmentSectorExecutiveRemunerationPanelguidelines.

Asat30June2013thecommitteecomprisedthreenon-executiveDirectors:JohnVogels(Chairman),KatharineFraserandRobertWallis.

Health and Safety Committee

TheHealthandSafetyCommitteestrategicallyreviewsprocessesforidentifying,assessingandprioritisingpublichealthandoccupationalhealthandsafetyrisksandassociatedriskabatement programs.

Asat30June2013thecommitteecomprisedfournon-executiveDirectors–FrankZeigler(Chairman),RodneyCoutts,KatharineFraser,GeorginaGubbins–andManagingDirectorGrantGreen.

Strategic Issues Committee

TheStrategicIssuesCommitteeprovidesaforumforDirectorstoexploreissuesofstrategicimportancetoWannonWaterindepthandbuildrelationshipswithkeystakeholders.

Asat30June2013thecommitteecomprisedsevennon-executiveDirectors–JohnVogels(Chairman),RodneyCoutts,KatharineFraser,GeorginaGubbins,RobertWallis,RussellWorland,FrankZeigler–andManagingDirectorGrantGreen.

Water Plan Committee

TheWaterPlanCommitteeprovidesguidanceandstrategicdirectionregardingdevelopmentofWaterPlansubmissionstotheEssentialServicesCommission.

Thecommitteecomprisedsevennon-executiveDirectors–KatharineFraser(Chair),JohnVogels,RodneyCoutts,GeorginaGubbins,RobertWallis,RussellWorland,FrankZeigler–andManagingDirectorGrantGreen.

CORPORaTE gOvERnanCE


BOaRd OF diRECTORS

managing diRECTOR grant green

managER CORPORaTE

COmmuniCaTiOnSgarrath darkin

audiT & RiSK managEmEnT

COmmiTTEE

gEnERal managER

aSSETSBrian Jenkins

asset Creationasset Planningasset Systems

gEnERal managER FinanCE

Steven Waterhouse

Corporate ServicesFinance & Regulation

Knowledge & Technology

gEnERal managER

STRaTEgY & innOvaTiOn

ian Bail

Risk management Strategy development Recycled Resources

gEnERal managER

SERviCE dElivERYandrew Jeffers

Retail ServicesSystems OperationsTreatment Services

BRanCh managERPEOPlE & CulTuRE

Colleen Rose

human Resourceshealth & SafetyRemuneration

BOaRd SECRETaRY

Steven Kearns

EXECuTivE REmunERaTiOn

COmmiTTEE

hEalTh & SaFETY

COmmiTTEE

STRaTEgiC iSSuES

COmmiTTEE

ORganiSaTiOnal STRuCTuRE

Legislative compliance

Protected Disclosures Act

The Whistleblowers Protection Act2001(WBAct)wasrepealedand replaced with the Protected Disclosure Act 2012(PDAct)on10February2013.Asthechangeoflegislationoccurredmidwaythroughthe2012/13financialyear,thisdisclosurecomplieswiththerequirementsofthePDActandsection104oftheWBAct,foreachoftherelevanttimeperiods.

Compliance with the Protected Disclosures Act 2012

ThePDActwaspartofapackageofintegrityreformsintroducedbytheVictorianCoalitionGovernment,whichalsoestablishedtheIndependentBroad-BasedAnti-CorruptionCommission(IBAC).

ThePDActenablespeopletomakedisclosuresaboutimproper conduct within the public sector without fear of reprisal.Itaimstoensureopennessandaccountabilitybyencouragingpeopletomakedisclosuresandprotectingthemwhentheydo.

What is a ‘protected disclosure’? Aprotecteddisclosureisacomplaintofcorruptorimproperconductbyapublicofficerorapublicbody.

WannonWaterisa“publicbody”forthepurposesofthePDAct.

What is ‘improper or corrupt conduct’? Improperorcorruptconductinvolvessubstantial:• mismanagementofpublicresources;or• risktopublichealthorsafetyortheenvironment;or• corruption.

WaTER Plan COmmiTTEE

34

The conduct must be criminal in nature or a matter for which an officer could be dismissed.

How do I make a ‘protected disclosure’? YoucanmakeaprotecteddisclosureaboutWannonWateroritsBoardmembers,officersoremployeesbycontactingtheDepartmentofEnvironmentandPrimaryIndustriesorIBACon the contact details provided below.

PleasenotethatWannonWaterisnotabletoreceiveprotected disclosures.

How can I access Wannon Water’s procedures for the protection of persons from detrimental action?

WannonWaterhasestablishedproceduresfortheprotectionofpersonsfromdetrimentalactioninreprisalformakingaprotecteddisclosureaboutWannonWateroritsemployees.YoucanaccessWannonWater’sproceduresonourwebsiteat:www.wannonwater.com.au.

ContactsDepartmentofEnvironmentandPrimaryIndustries JenniferBerensen,SeniorAdvisor,Privacy&Ombudsman DepartmentofEnvironmentandPrimaryIndustries Address: POBox500,EastMelbourneVic3002 Phone: 0396378697 Website: www.depi.vic.gov.au

IndependentBroad-BasedAnti-CorruptionCommissionVic. Address: Level1,NorthTower,459CollinsStreet, MelbourneVictoria3001. Mail: IBAC,GPOBox24234,MelbourneVictoria3000 Website: www.ibac.vic.gov.au Phone: 1300735135 Email: seethewebsiteaboveforthesecureemail disclosure process, which also provides for anonymousdisclosures.

Disclosures under the WhistleblowersProtectionAct2001 (up to 9 February 2013) TherewerenodisclosuresundertheWBAct.

ThearchivedproceduresestablishedundertheWBActareavailable upon request.

Freedom of Information Act

WannonWateriscommittedtoensuringinformationismadeaccessible in accordance with the Freedom of Information Act 1982.

In2012/13,WannonWaterreceivedonerequestforaccessto documents under the Freedom of Information Act1982andgranted access in full.

ApplicationsforaccesstoinformationundertheFreedom of Information Act1982mustbemadeinwriting,addressedto:

Steven Kearns Freedom of Information Manager Wannon Water PO Box 1158 Warrnambool Vic 3280

The application must describe the documents to which access issoughtandincludeanapplicationfeeof$25.70(furtherchargesmayapply).FeesandchargesleviedundertheFreedom of Information Act1982arenotsubjecttoGST.

Information Privacy Act

WannonWatercomplieswithinformationprivacyprinciplesset out in the Information Privacy Act2000.APersonalPrivacyCharterprovidesguidancetoouremployees,contractorsandconsultants to ensure that private information is protected from unauthorised access or disclosure.

Acopyofthischartercanbeviewedonourwebsite.

Other information

ThefollowinginformationisavailableonrequestfromWannonWater,subjecttorelevantlegislation:• astatementthatdeclarationsofpecuniaryinterestshave

beendulycompletedbyallrelevantofficers• detailsofsharesheldbyaseniorofficerasnominee,or

heldbeneficiallyinastatutoryauthorityorsubsidiary• detailsofpublicationsproducedbyWannonWaterabout

itself, and how these can be obtained• details of changes in prices, fees, charges, rates and levies

chargedbyWannonWater• detailsofanymajorexternalreviewscarriedouton

WannonWater• detailsofmajorresearchanddevelopmentactivities

undertakenbyWannonWater• detailsofoverseasvisitsundertaken,includingasummary

oftheobjectivesandoutcomesofeachvisit• detailsofmajorpromotional,publicrelationsand

marketingactivitiesundertakenbyWannonWatertodevelopcommunityawarenessofWannonWateranditsservices

• detailsofassessmentsandmeasuresundertakentoimprovetheoccupationalhealthandsafetyofemployees

• ageneralstatementonindustrialrelationswithinWannonWateranddetailsoftimelostthroughindustrialaccidentsand disputes

ORganiSaTiOnal STRuCTuRE


• alistofmajorcommittees,thepurposesofeachcommittee and the extent to which the purposes have been achieved

• details of all consultancies and contractors, including consultants/contractorsengaged,servicesprovidedandexpenditure committed to for each engagement.

WannonWaterprovidesfreeaccesstoacomprehensiverangeof information on its website, www.wannonwater.com.au.

Building Act

WannonWatercompliedwiththebuildingandmaintenanceprovisions of the Building Act1993.

Victorian Industry Participation Policy

NocontractstowhichtheVictorian Industry Participation Policy Act 2003appliedwerecommencedorcompletedin2012/13.

Other disclosures

Major contracts

Nocontractsgreaterthan$10millionwereenteredinto.

National competition policy

Competitiveneutralityseekstoenablefaircompetitionbetweengovernmentandprivatesectorbusinesses.Anyadvantages or disadvantages that government businesses mayexperience,simplyasaresultofgovernmentownership,shouldbeneutralised.TheNationalCompetitionPolicyaimstoimprovetheperformanceofAustralianbusinessesbyexposingthem,whereapplicable,tothepressureofcompetitivemarkets.

TheNationalCompetitionPolicycontinuestobeimplemented,andtheprincipleofcompetitiveneutralityappliedbyWannonWaterinitsbusinessundertakings.

Consultancy expenditure

Consultants costing less than $10,000

WannonWaterengaged21consultanciesin2012/13wherethetotalfeespayabletotheconsultantswerelessthan$10,000.Totalexpenditureontheseconsultantswas$96,127(excludingGST).

Consultants costing more than $10,000

Sixmajorconsultancieswereengagedin2012/13withatotalvalueof$333,529.

GHDPtyLtd Damsafetymanagement 509 159 350

ThisSideUpPtyLtd Telecommunicationstenderassessment 22 22 Nil

AndrewLong&AssociatesPtyLtd Aboriginalculturalheritageplan 20 20 Nil

MaloneyFieldServicesPtyLtd Professionalservices–pipelineeasements 11 11 Nil

StepTwoDesignsPtyLtd Intranetarchitectureplan 31 31 Nil

Odysseus-imcPtyLtd Assetmanagementplan 91 91 Nil

Consultant Purpose of consultancy

Total Project Fee

(exc. GST)$’000

Expenditure 2012/13

(exc. GST)$’000

Future Expenditure (exc. GST)

$’000

36

FinanCial STaTEmEnTS

COnTEnTS

Comprehensive Operating Statement 37Balance Sheet 38Statement of Changes in Equity 39Cash Flow Statement 40

Notes to the Financial Report 41Note1–Accountingpolicies 41Note2–Financialriskmanagementobjectivesandpolicies 50Note3–Criticalaccountingestimatesandjudgements 52Note4–Revenueandexpensedisclosures 52Note5–Incometax 54Note6–Cashandcashequivalents 55Note7–Receivables 55Note8–Inventories 56Note9–Prepayments 56Note10–Assetsclassifiedasheldforsale 56Note11–Property,plantandequipment 57Note12–Intangibleassets 58Note13–Payables 59Note14–Interestbearingliabilities 59Note15–Employeebenefits 60Note16–Contributedcapital 61Note17–Reserves 61Note18–Accumulatedfunds 61Note19–Financialinstruments 62Note20–Commitments 63Note21–Contingentliabilitiesandcontingentassets 64Note22–Superannuation 64Note23–Responsiblepersonsandexecutiveofficerdisclosures 65Note24–Reconciliationofprofit/(loss)fortheperiodafterrelated incometaxtonetcashflowsfromoperatingactivities 67Note25–ExGratiaPayments 67Note26–RemunerationofAuditors 67Note27–Eventsoccurringafterthebalancesheetdate 67

Accountable officer’s and chief finance andaccounting officer’s declaration 68Auditor-General’s Report 69


COmPREhEnSivE OPERaTing STaTEmEnTFor the year ended 30 June 2013

Notes 2013 2012 $’000 $’000

Revenue 1(b) Servicecharges 4(a) 36,159 31,897Usagecharges 4(a) 30,438 27,889Governmentgrantsandcontributions 4(a) 1,340 621Interest 4(a) 166 178Developerandcustomercontributions 4(a) 921 12,730Assetsreceivedfreeofchargeorfornominalconsideration 4(a) 1,769 1,664Otherincome 4(a) 5,887 5,049 Total Revenue 76,680 80,028 Expenses Employeebenefits 1(c),4(c) (17,025) (17,922)Depreciation 1(c),4(c) (22,453) (24,974)Amortisation 1(c),4(c) (909) (471)Suppliesandservices 4(c) (19,274) (21,196)Borrowingcosts 1(c),4(c) (5,979) (5,873)Netlossondisposalofnonfinancialassets 1(b),4(b) (878) (3,112)Environmentalcontribution 1(c) (1,569) (1,569) Total Expenses (68,087) (75,117) Net result before tax 8,593 4,911 Income tax (expense) / revenue 5(a) (1,972) (1,170) Net result for the period 6,621 3,741 Comprehensive result 6,621 3,741

The above Comprehensive Operating Statement should be read in conjunction with the accompanying notes.

38

BalanCE ShEETAs at 30 June 2013

Notes 2013 2012ASSETS $’000 $’000

Current assets Cashandcashequivalents 1(d),6 3,473 24Receivables 1(d),7 16,221 14,730Inventories 1(d),8 624 606Prepayments 1(d),9 730 626Assetsclassifiedasheldforsale 1(d),10 - 263 Total current assets 21,048 16,249 Non-current assets Receivables 1(d),7 14,881 15,660Property,plantandequipment 1(d),11 557,606 553,287Intangibleassets 1(d),12 6,816 7,235 Total non-current assets 579,303 576,182 TOTAL ASSETS 600,351 592,431 LIABILITIES Current liabilities Payables 1(e),13 6,920 5,393Interestbearingliabilities 1(e),14 11,043 10,700Employeebenefits 1(e),15 3,214 2,960 Total current liabilities 21,177 19,053 Non-current liabilities Payables 1(e),13 - 1,458Interestbearingliabilities 1(e),14 77,727 78,770Employeebenefits 1(e),15 642 769Deferredtaxliabilities 1(h),5(d) 36,879 35,076 Total non-current liabilities 115,248 116,073 TOTAL LIABILITIES 136,425 135,126 NET ASSETS 463,926 457,305 Equity Contributedcapital 1(f),16 441,165 441,165Reserves 17 13,325 11,744Accumulatedfunds 18 9,436 4,396 TOTAL EQUITY 463,926 457,305

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


STaTEmEnT OF ChangES in EquiTYFor the year ended 30 June 2013

Contributed Accumulated Capital Reserves Funds Total Notes $’000 $’000 $’000 $’000 Balance at 1 July 2011 440,347 11,857 542 452,746 Total comprehensive income for the year as reported in the 2012 financial report - - 3,741 3,741 Transfer to accumulated funds on disposal - (113) 113 - Transactions with the State in its capacity as owner: Contributionsbyowners Grant-WarrnamboolRoofWaterHarvestingProject 16 476 - - 476Grant-SmallTownsWaterQualityFund 16 342 - - 342 Balance at 30 June 2012 441,165 11,744 4,396 457,305 Total comprehensive income for the period - - 6,621 6,621 Transfer from accumulated funds on disposal - 1,581 (1,581) - Balance at 30 June 2013 441,165 13,325 9,436 463,926

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

40

CaSh FlOW STaTEmEnTFor the year ended 30 June 2013

Notes 2013 2012 $’000 $’000Cash flows from operating activities Receipts Serviceandusagecharges 65,096 61,084GSTrecovered 4,390 4,781Capitalgrantsreceived 1,340 621Capitalchargesreceived 1,619 1,175 72,445 67,661Payments Paymentstosuppliersandemployees (33,429) (35,900)GSTpaid (4,238) (4,895) Interest and other costs of finance paid (5,968) (5,851)Environmentalcontributions (1,569) (1,569) (45,204) (48,215) Net cash inflow from operating activities 24 27,241 19,446 Cash flows from investing activities Paymentsforinfrastructure,property,plantandequipment (24,106) (30,820)Proceedsfromsaleofinfrastructure,property,plantandequipment 1,014 440 Net cash (outflow) from investing activities (23,092) (30,380) Cash flows from financing activities Proceeds from borrowings 9,811 15,151Repaymentofborrowings (10,511) (6,075)Proceedsfromcontributionsbyowners - 818 Net cash inflow/(outflow) from financing activities (700) 9,894 Net increase/(decrease) in cash and cash equivalents 3,449 (1,040)Cashandcashequivalentsatstartofthefinancialyear 24 1,064 Cash and cash equivalents at the end of the financial year 6(a) 3,473 24 Financingarrangements 14

The above Cash Flow Statement should be read in conjunction with the accompanying notes.


nOTES TO ThE FinanCial REPORT 30 June 2013

note 1. accounting policies (a) Basis of Accounting General ThefinancialreportincludesseparatefinancialstatementsforWannonRegionWaterCorporationasanindividualreportingentity.ThisfinancialreportisageneralpurposefinancialreportthatconsistsofaComprehensiveOperatingStatement,BalanceSheet,StatementofChangesinEquity,CashFlowStatementandnotesaccompanyingthesestatements.ThegeneralpurposefinancialreporthasbeenpreparedinaccordancewithAustralianAccountingStandards(AAS),InterpretationsandotherauthoritativepronouncementsoftheAustralianAccountingStandardsBoard(AASB),andtherequirementsoftheFinancialManagementAct1994andapplicableMinisterialDirections.WannonRegionWaterCorporationisanot-for-profitentityforthepurposeofpreparingthefinancialstatements.

Whereappropriate,thoseAASparagraphsapplicabletonot-for-profitentitieshavebeenapplied.

Theaccrualbasisofaccountinghasbeenappliedinthepreparationofthesefinancialstatementswherebyassets,liabilities,equity,incomeandexpensesarerecognisedinthereportingperiodtowhichtheyrelate,regardlessofwhencashisreceivedorpaid.

TheannualfinancialstatementswereauthorisedforissuebytheBoardon16August2013.

Theprincipaladdressis: 25GatewayRd WarrnamboolVIC3280

Accounting policies Unlessotherwisestated,allaccountingpoliciesappliedareconsistentwiththoseoftheprioryear.Whereappropriate,comparativefigureshavebeen amended to align with current presentation and disclosure.

Functional and presentation currency ItemsincludedinthisfinancialreportaremeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichWannonRegionWaterCorporationoperates(‘thefunctionalcurrency’).ThefinancialreportispresentedinAustraliandollars,whichisWannonRegionWaterCorporation’sfunctionalandpresentationcurrency.

Classification between current and non-current Inthedeterminationofwhetheranassetorliabilityiscurrentornon-current,considerationisgiventothetimewheneachassetorliabilityisexpectedtoberealisedorpaid.Theassetorliabilityisclassifiedascurrentifitisexpectedtobeturnedoverinthenexttwelvemonths,beingtheCorporation’soperatingcycle.SeeNote1(e)foravariationinrelationtoemployeebenefits.

Rounding Unlessotherwisestated,amountsinthisreporthavebeenroundedtothenearestthousanddollars.Figuresinthefinancialreportmaynotequate due to rounding.

Historical cost convention Thisfinancialreporthasbeenpreparedunderthehistoricalcostconvention,asmodifiedbytherevaluationoffinancialassets,certainclassesofproperty,plantandequipmentandinvestmentproperty.

Accounting estimates ThepreparationofthefinancialreportinconformitywithAASrequirestheuseofcertainaccountingestimatesthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.Italsorequiresmanagementtoexerciseitsjudgementintheprocessofapplyingtheentity’saccountingpolicies.

Accountingestimatesundertakeninthepreparationofthisfinancialreportrelateto:- the estimation of useful lives for infrastructure assets - the impairment of assets -actuarialassumptionsusedtodeterminetheCorporation’ssuperannuationdefinedbenefitliabilityandemployeebenefitprovisions

Theseassumptionsarediscussedinnotes1(c)and1(d)andtherelatedcarryingamountsaredisclosedinnotes4,11,13,15and22.

(b) Revenue Service and usage charges Tariff and service charges are recognised as revenue when levied or determined.

Tradewastechargesarerecognisedasrevenueattheendoftheservicedeliveryperiod.Volumemetersarereadandappropriatechargesleviedaspertradewasteagreements.Themetersarereadonamonthlybasiswithaccountssentonaquarterlybasis.

Waterusagechargesbymeasurearerecognisedasrevenuewhenthewaterisprovided.Meterreadingisundertakenprogressivelyduringtheyear.Anestimation,calculatedbymultiplyingthenumberofdayssincethelastreadingbythecustomer’saverageserviceusage,ismadeattheend of each accounting period in respect of meters which have not been read at balance date.

42

nOTES TO ThE FinanCial STaTEmEnTS 30 June 2013

note 1. accounting policies (continued)

(b) Revenue (continued)Interest Interest income is recognised using the effective interest rate method.

Developer contributions / Fees paid by developers WaterinfrastructureassetsbuiltbydevelopersinnewlandsubdivisionsthatoncompletionareprovidedtotheCorporation,orfeespaidbydeveloperstoconnectnewdevelopmentstotheCorporation’sexistingwatersupplyandseweragesystems,arerecognisedasrevenuewhenthe contributions are received.

Government grants and contributions GovernmentgrantsandcontributionsarerecognisedasoperatingrevenueonreceiptorwhentheentityobtainscontrolofthecontributionandmeetscertainothercriteriaasoutlinedbyAASB1004Contributions,whicheveristhesooner,anddisclosedinthecomprehensiveoperatingstatementasgovernmentgrantsandcontributions.However,grantsandcontributionsreceivedfromtheVictorianStateGovernment,whichwereoriginallyappropriatedbytheParliamentasadditionstonetassetsorwheretheMinisterforFinanceandtheMinisterforWaterhaveindicatedareinthenatureofowners’contributions,areaccountedforasEquity-Contributionsbyowners.

Sale of assets Theprofitorlossonsaleofanassetisdeterminedwhencontrolhaspassedtothebuyer.Inaccountingforthesaleofnon-currentassets,grossproceeds from the sales are deducted from the total cost of assets sold and decommissioned to determine a result which is included in the comprehensive operating statement.

(c) ExpensesEmployee benefits Theseexpensesincludeallcostsrelatedtoemployment(otherthansuperannuationwhichisaccountedforseparately)includingwagesandsalaries,fringebenefitstax,leaveentitlements,redundancypaymentsandWorkCoverpremiums.

Superannuation Theamountrecognisedinthecomprehensiveoperatingstatementistheemployercontributionsformembersofbothdefinedbenefitanddefinedcontributionsuperannuationplansthatarepaidorpayableduringthereportingperiod.

Depreciation and amortisation of non-current assets Allnon-currentphysicalassetsthathavealimitedusefullifearedepreciated.Whereassetshaveseparateidentifiablecomponentsthathavedistinctusefullivesand/orresidualvalues,aseparatedepreciationrateisdeterminedforeachcomponent.

Depreciationiscalculatedusingthestraightlinemethodtoallocatetheircostorrevaluedamounts,netoftheirresidualvalues,overtheirestimatedusefullives,commencingfromthetimetheassetisheldreadyforuse.Theassetsresidualvaluesandusefullivesarereviewed,andadjustedifappropriate,ateachbalancesheetdate.

Intangible assets with finite useful lives are amortised as an expense on a straight line basis commencing from the time the asset is available foruse.Theamortisationperiodsarereviewedandadjustedifappropriateateachbalancesheetdate.AllintangibleassetsareassessedforimpairmentannuallyasoutlinedinNote1(d).

Majordepreciationperiodsusedarelistedbelowandareconsistentwiththeprioryear,unlessotherwisestated.

asset Class Period asset Class PeriodBores 40years Buildings 80yearsElectrical 15-25years Furnitureandfittings 5-20yearsLagoons 80years Manholes 80yearsMechanical 20-25years Meters 15-20yearsPipes 80-100years Plant,equipment&motorvehicles 8-20yearsPumps 15-40years Reservoirs 100yearsServicebasins 100years Tanks 40-80yearsTowers 50-80years

Repairs and maintenance Routinemaintenance,repaircostsandminorrenewalcostsareexpensedasincurred.Wheretherepairrelatestothereplacementofacomponent of an asset and the cost exceeds the capitalisation threshold, the cost is capitalised and depreciated.

Borrowing costs Borrowingcostsarerecognisedasanexpenseintheperiodinwhichtheyareincurred.Borrowingcostsincludeinterestonshort-termandlong-termborrowingsandfinancialaccommodationlevy.



note 1. accounting policies (continued)

(c) Expenses (continued) Environmental contributions TheCorporationhasastatutoryobligationtopayanenvironmentalcontributiontotheDepartmentofEnvironmentandPrimaryIndustries.This contribution is recognised as an expense during the reporting period as incurred.

Theenvironmentalcontributionsaredisclosedseparatelywithinthecomprehensiveoperatingstatement.

(d) AssetsCash and cash equivalents Cashandcashequivalentsincludecashonhand,depositsheldatcallwithfinancialinstitutionsandothershortterminvestmentsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangeinvalues.

Receivables Tradereceivablesarerecognisedinitiallyatamountsdue,lessanallowanceforimpairedreceivables.Tradereceivablesaredueforsettlementnomorethan28daysfromthedateofrecognitionforwaterutilitydebtors,andnomorethan30daysforotherdebtors.

Collectabilityoftradereceivablesisreviewedonanongoingbasis.Debtswhichareknowntobeuncollectablearewrittenoff.AnallowanceforimpairedreceivablesisestablishedwhenthereisobjectiveevidencethattheCorporationwillnotbeabletocollectallamountsdueaccordingto the original terms of receivables. The amounts credited to the allowance are recognised as an expense in the comprehensive operating statement.

Inventories Inventoriescomprisestoresandmaterialsusedfortherepairandmaintenanceofexistingassets.Allinventoriesaremeasuredatthelowerofcostandnetrealisablevalue.Costsareassignedtoinventoryquantitiesonhandatbalancedateonafirstin,firstoutbasis.

Prepayments Prepaymentsrepresentpaymentsinadvanceofreceiptofgoodsorservicesorthatpartofexpendituremadeinoneaccountingperiodcoveringatermextendingbeyondthatperiod.

Property, plant and equipment Recognition and measurement of assets

Property,plantandequipmentrepresentnon-currentphysicalassetscomprisingland,buildings,water,sewerageanddrainageinfrastructure,plant,equipmentandmotorvehiclesusedbytheCorporationinitsoperations.Itemswithanestimatedusefullifeofmorethantwoyearsorareconsideredtobeanattractiveitemarerecognisedasanasset.Allotherassetsacquiredareexpensed.

Assetsacquiredatnocost,orfornominalconsiderationbytheCorporation,arerecognisedattheirfairvalueatthedateofacquisition.

Measurement of non-current physical assets Allnon-currentphysicalassetsarerecognisedinitiallyatcostandsubsequentlyrevaluedatfairvaluelessaccumulateddepreciationandimpairmentinaccordancewiththerequirementsofFinancialReportingDirection(FRD)103DNon-CurrentPhysicalAssets.

RevaluationsareconductedinaccordancewithFRD103D.Scheduledrevaluationisundertakeneveryfiveyearswithanannualassessmentoffairvaluetodetermineifitismateriallydifferenttocarryingvalue.Ifthedifferencetocarryingvalueisgreaterthan10percent,amanagementrevaluationisundertakenwhileamovementgreaterthan40percentwillnormallyinvolveanApprovedValuertoperformdetailedassessmentofthefairvalue.Ifthemovementinfairvaluesincethelastrevaluationislessthanorequalto10percent,thennochangeismadetocarryingamounts.

Plant, equipment and motor vehicles are measured at cost. Managements assessment is that depreciated cost approximates fair value.

Fortheplant,equipmentandvehiclesassetclass,wheretheCorporationisabletodemonstratethatthereisnoevidencethatareliablemarket-basedfairvalue(orotherfairvalueindicators)existfortheseassets,depreciatedreplacementcostisusedtorepresentareasonableapproximation of fair value.

Waterinfrastructureassets,atboththeentityreportinglevelandwholeofgovernmentreportinglevel,aremeasuredatfairvaluelessaccumulateddepreciationandimpairmentinaccordancewithFRD103D.Theseassetscomprisesubstructuresorunderlyingsystemsheldtofacilitateharvesting,storage,treatmentandtransferofwatertomeetcustomerneeds.Theyalsoincludeinfrastructureassetsthatunderliesewageanddrainagesystems.

ThefairvalueassessmentforwaterinfrastructureinthepriorperiodwasundertakenwithinvolvementfromtheValuerGeneralofVictoria(VGV)andundertheinstructionsoftheDepartmentofTreasuryandFinance(DTF).Theassessmentwasperformedonaportfoliobasisforvariouscategoriesofwaterinfrastructures.FurtherdetailsofthevaluationexerciseareprovidedinNote11.

44


(d) Assets (continued) Revaluation of non-current physical assets

Revaluationincrementsarecrediteddirectlytoequityintherevaluationreservesurplus/(deficit),exceptthat,totheextentthatanincrementreversesarevaluationdecrementinrespectofthatclassofassetpreviouslyrecognisedasanexpenseindeterminingnetresult,theincrementisrecognised as revenue in determining the net result.

Revaluationdecrementsarerecognisedimmediatelyasanexpenseinthenetresult,exceptthat,totheextentthatacreditbalanceexistsintherevaluationreserveinrespectofthesameclassofassets,theyaredebitedtotherevaluationreserve.

Revaluationincreasesandrevaluationdecreasesrelatingtoindividualassetswithinaclassofproperty,plantandequipmentareoffsetagainstoneanother within that class but are not offset in respect of assets in different classes.

Impairment of assets

Intangibleassetswithindefiniteusefullivesaretestedannuallyastowhethertheircarryingvalueexceedstheirrecoverableamount.Allotherassetsareassessedannuallyforindicatorsofimpairment,exceptfor : Inventories Deferredtaxassets Financialinstrumentassets;and, Non-currentassetsheldforsale

Ifthereisanindicationofimpairment,theassetsconcernedaretestedastowhethertheircarryingvalueexceedstheirrecoverableamount.Whereanasset’scarryingamountexceedsitsrecoverableamount,thedifferenceiswrittenoffbyachargetothecomprehensiveoperatingstatement except to the extent that the write-down can be debited to an asset revaluation reserve amount applicable to the class of asset.

Therecoverableamountformostassetsismeasuredatthehigherofdepreciatedreplacementcostandfairvaluelesscoststosell.Recoverableamountforassetsheldprimarilytogeneratenetcashinflowsismeasuredatthehigherofthepresentvalueoffuturecashflowsexpectedtobe obtained from the asset and fair value less costs to sell. It is deemed that, in the event of the loss of an asset, the future economic benefits arisingfromtheuseoftheassetwillbereplacedunlessaspecificdecisiontothecontraryhasbeenmade.

Animpairmentlossonarevaluedassetisrecogniseddirectlyagainsttherevaluationreserveinrespectofthesameclassofassettotheextentthat the impairment loss does not exceed the amount of the revaluation reserve for that same class of asset.

Areversalofanimpairmentlossonarevaluedassetiscrediteddirectlytoequityundertheheadingrevaluationreserve.However,totheextentthatanimpairmentlossonthesameclassofassetwaspreviouslyrecognisedintheoperatingstatement,areversalofthatimpairmentloss is also recognised in the comprehensive operating statement.

Assets classified as held for sale

Assetsclassifiedasheldforsalearemeasuredattheloweroftheircarryingamountandfairvaluelesscoststosell,astheircarryingamountwillberecoveredprincipallythroughasaletransactionratherthanthroughcontinuinguse.TheCorporationconsidersthatthesaleishighlyprobable,theassetisavailableforimmediatesaleinitspresentconditionandthesaleisexpectedtobecompletedwithin12monthsfromthedateofclassification.Assetsarenotdepreciatedoramortisedwhiletheyareclassifiedasheldforsale.Assetsclassifiedasheldforsaleareclassified as current assets.



note 1. accounting policies (continued) (d) Assets (continued) Intangibles Intangibleassetsrepresentidentifiablenon-monetaryassetswithoutphysicalsubstance.Intangibleassetsareinitiallyrecognisedatcost.Subsequently,intangibleassetswithfiniteusefullivesarecarriedatcostlessaccumulatedamortisationandaccumulatedimpairmentlosses.CostsincurredsubsequenttoinitialacquisitionarecapitalisedwhenitisexpectedthatadditionalfutureeconomicbenefitswillflowtotheCorporation. AsummaryofthepoliciesappliedtotheCorporation’sintangibleassetsisasfollows: Bulk Water Entitlement Software Costs Usefullives Indefinite Finite Amortisationmethodused Notamortisedorrevalued 4years-Straightline Internallygenerated/Acquired Acquired Acquired Impairmenttest/Recoverableamounttesting Annuallyandwhereanindicator Amortisationmethodreviewedateachfinancialyearend. ofimpairmentexists Reviewedannuallyforindicatorsofimpairment

(e) Liabilites

Payables Payablesconsistpredominantlyoftradeandsundrycreditors.TheseamountsrepresentliabilitiesforgoodsandservicesprovidedtotheCorporationpriortotheendofthefinancialyear,whichareunpaidatfinancialyearend.Theseamountsareunsecuredandareusuallypaidwithin30daysofrecognition.Payablesareinitiallyrecognisedatfairvalue,beingthecostofgoodsandservices,andsubsequentlymeasuredatamortised cost.

Interest bearing liabilities Borrowingsareinitiallyrecognisedatfairvalue,netoftransactioncostsincurred.Borrowingsaresubsequentlymeasuredatamortisedcost.Anydifferencebetweentheinitialamountrecognised(netoftransactioncosts)andtheredemptionamountisrecognisedinthecomprehensiveoperating statement over the period of the borrowings, using the effective interest method. BorrowingsareclassifiedascurrentliabilitesunlesstheCorporationhasanunconditionalrighttodefersettlementoftheliabilityforatleast12months after the balance sheet date.

Employee benefits

Wages and salaries, annual leave and sick leave Liabilitiesforwagesandsalaries,annualleaveandaccumulatingsickleaveexpectedtobesettledwithin12monthsofthereportingdatearerecognisedinemployeebenefitliabilitiesinrespectofemployees’servicesuptothereportingdateandaremeasuredattheamountsexpectedtobepaidwhentheliabilitiesaresettled,attheirnominalvalues.Employeebenefitswhicharenotexpectedtobesettledwithin12monthsaremeasuredatthepresentvalueoftheestimatedfuturecashoutflowstobemadebytheentity,inrespectofservicesrenderedbyemployeesuptothereportingdate.Regardlessoftheexpectedtimingofsettlements,liabilitiesinrespectofemployeebenefitsareclassifiedasacurrentliability,unlessthereisanunconditionalrighttodeferthesettlementoftheliabilityforatleast12monthsafterthereportingdate,inwhichcaseitwouldbeclassifiedasanon-currentliability.

Long service leave (LSL) CurrentLiability-unconditionalLSL(representing7ormoreyearsofcontinuousservice,aspertheWannonWaterEBAAgreement2010)isdisclosedasacurrentliabilityevenwheretheCorporationdoesnotexpecttosettletheliabilitywithin12monthsbecauseitdoesnothavetheunconditionalrighttodeferthesettlementoftheentitlementshouldanemployeetakeleavewithin12months.

ThecomponentsofthiscurrentLSLliabilityaremeasuredat: -Presentvalue-componentthattheCorporationdoesnotexpecttosettlewithin12months -Nominalvalue-componentthattheCorporationexpectstosettlewithin12months

Non-CurrentLiability-conditionalLSL(representinglessthan7yearsofcontinuousservice,aspertheWannonWaterEBAAgreement2010)isdisclosedasanon-currentliability.Thereisanunconditionalrighttodeferthesettlementoftheentitlementuntiltheemployeehascompletedtherequisiteyearsofservice.ConditionalLSLisrequiredtobemeasuredatpresentvalue.

Incalculatingpresentvalue,considerationisgiventoexpectedfuturewageandsalarylevels,experienceofemployeedeparturesandperiodsofservice.Expectedfuturepaymentsarediscountedusingmarketyieldsatthereportingdateonnationalgovernmentbondswithtermstomaturityandcurrencythatmatch,ascloselyaspossible,theestimatedfuturecashoutflows.

46


note 1. accounting policies (continued) (e) Liabilites (continued) Superannuation TheamountchargedtothecomprehensiveoperatingstatementinrespectofsuperannuationrepresentsthecontributionsmadebytheCorporationtothesuperannuationplaninrespecttothecurrentservicesofentitystaff.Superannuationcontributionsaremadetotheplansbased on the relevant rules of each plan.

Employee benefit on-costs Employeebenefiton-costs,includingpayrolltaxandworker’scompensationarerecognisedandincludedinemployeebenefitliabilitiesandcostswhentheemployeebenefitstowhichtheyrelatearerecognisedasliabilities.

(f) Equity Contributed capital Additionstonetassetswhichhavebeendesignatedascontributionsbyownersarerecognisedascontributedcapital.Othertransfersthatareinthenatureofcontributionsordistributionshavealsobeendesignatedascontributionsbyowners.Transfersofnetassetsarisingfromadministrativerestructuringsaretreatedasdistributionstoorcontributionsbyowners.GrantsandcontributionsreceivedfromtheVictorianStateGovernment,whichwereoriginallyappropriatedbytheParliamentasadditionstonetassetsorwheretheMinisterforFinanceandtheMinisterforWaterhaveindicatedareinthenatureofowners’contributions,areaccountedforasEquity–ContributionsbyOwners.

(g) Financial instruments Recognition Financialinstrumentsareinitiallymeasuredatfairvalue,plusinthecaseofafinancialassetorfinancialliabilitynotatfairvaluethroughprofitandloss,transactioncoststhataredirectlyattributabletotheacquisitionortheissueofthefinancialassetorliability.Subsequenttoinitialrecognition,the financial instruments are measured as set out below.

Loans and receivables Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.Theyareincludedincurrentassets,exceptforthosewithmaturitiesgreaterthan12monthsafterthereportingdatewhichareclassifiedasnon-currentassets.Loansandreceivablesareincludedintradeandotherreceivablesandotherreceivablesinthebalancesheet.Loansandreceivablesarerecorded at amortised cost less impairment.

Impairment of financial assets Ateachreportingdate,theCorporationassesseswhetherthereisobjectiveevidencethatafinancialinstrumenthasbeenimpaired.

(h) Taxation TheCorporationissubjecttotheNationalTaxEquivalentRegime(NTER),whichisadministeredbytheAustralianTaxationOffice.

Theincometaxexpenseorrevenuefortheperiodistheexpectedtaxpayableorreceivableonthecurrentperiod’staxableincomebasedonthenationalcorporateincometaxrateof30%,adjustedbychangesindeferredtaxassetsandliabilitiesattributabletotemporarydifferencesbetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsinthefinancialstatements,andtounusedtaxlosses.

Deferredtaxassetsandliabilitiesarerecognisedfortemporarydifferencesatthetaxratesexpectedtoapplywhentheassetsarerecoveredorliabilitiesaresettled,basedonthosetaxrateswhichareenactedorsubstantiallyenacted.Therelevanttaxratesareappliedtothecumulativeamountsofdeductibleandtaxabletemporarydifferencestomeasurethedeferredtaxassetorliability.Nodeferredtaxassetorliabilityisrecognisedinrelationtothesetemporarydifferencesiftheyaroseinatransactionthatatthetimeofthetransactiondidnotaffecteitheraccountingortaxableprofitorloss.Deferredtaxassetsarerecognisedfordeductibletemporarydifferencesandunusedtaxlossesonlyifitisprobablethatfuturetaxableamountswillbeavailabletoutilisethosetemporarydifferencesandlosses.

TheCorporation’sdeferredtaxliabilitiesexceedthelevelofdeferredtaxassetsandthereforeanetdeferredtaxliabilityhasbeendisclosedinthe balance sheet.

(i) Commitments Commitmentsforfutureexpenditureincludeoperatingandcapitalcommitmentsarisingfromcontracts.Thesecommitmentsaredisclosedbywayofanote(refertoNote20)attheirnominalvalueandinclusiveofthegoodsandservicestax(GST)payable.

These future expenditures cease to be disclosed as commitments once the related liabilities are recognised in the balance sheet.

(j) Contingent assets and contingent liabilities Contingentassetsandcontingentliabilitiesarenotrecognisedinthebalancesheet,butaredisclosedbywayofanote(refertoNote21)andifquantifiable,aremeasuredatnominalvalue.ContingentassetsandliabilitesarepresentedexclusiveofGSTreceivableorpayablerespectively.



note 1. accounting policies (continued) (k) Dividend policy TheCorporationisrequiredtopayadividendinaccordancewiththedeterminationoftheTreasurerofVictoriaunderthePublicAuthorities(Dividend)Act1983,basedonaprescribedpercentageofthepreviousyears’adjustednetprofit.

AnobligationtopayadividendonlyarisesafterconsultationwiththeportfolioMinisterandtheTreasurer,andaformaldeterminationismadebytheTreasurer.TheCorporation’spreliminaryestimateforthereportingperiodis$Nil.

(l) Goods and services tax Revenues,expensesandassetsarerecognisednetofgoodsandservicestax(GST),exceptwheretheamountofGSTisnotrecoverablefromtheAustralianTaxOffice(ATO).Inthesecircumstances,theGSTisrecognisedaspartofthecostofacquisitionoftheassetoraspartofanitem of expense.

ReceivablesandpayablesarestatedinclusiveofGST.ThenetamountofGSTrecoverablefrom,orpayableto,theATOisincludedasacurrentassetorliabilityintheBalanceSheet.CashflowsarisingfromoperatingactivitiesaredisclosedintheCashFlowStatementonagrossbasis-ieinclusiveofGST.TheGSTcomponentofcashflowsarisingfrominvestingandfinancingactivities,whichisrecoverableorpayabletotheATO,isclassifiedasoperatingcashflows.

(m) New Accounting Standards and Interpretations issued that are not yet effective Certainnewaccountingstandardsandinterpretationshavebeenpublishedthatarenotmandatoryforthe30June2013reportingperiod.Asat30June2013,thefollowingstandardsandinterpretationshadbeenissuedbutwerenotmandatoryforthefinancialyearending30June2013.TheCorporationhasnotanddoesnotintendtoadoptthesestandardsearly.

AASB9FinancialInstruments,AASB2010-7AmendmentstoAustralianAccountingStandardsarisingfromAASB9(December2010)andAASB2012-6AmendmentstoAustralianAccountingStandards-MandatoryEffectiveDateofAASB9andTransitionDisclosures

AASB1053ApplicationofTiersofAustralianAccountingStandard,AASB2010-2AmendmentstoAustralianAccountingStandardsarisingfromReducedDisclosureRequirements,AASB2011-2AmendmentstoAustralianAccountingStandardsarisingfromtheTans-TasmanConvergenceProject-ReducedDisclosureRequirementsandAASB2012-7AmendmentstoAustralianAccountingStandardsarisingfromReducedDisclosureRequirementsandAASB2012-11AmendmentstoAustralianAccountingStandards-ReducedDisclosureRequirementsandOtherAmendments

AASB9FinancialInstrumentsaddressesthe classification, measurement and derecognition of financial assets and financial liabilities. The standard is not applicableuntil1January2015butisavailableforearlyadoption.Thederecognition rules have been transferred fromAASB139FinancialInstruments:RecognitionandMeasurementandhavenotbeenchanged.TheentityhasnotyetdecidedwhentoadoptAASB9. On30June2010theAASBofficiallyintroduced a revised differential reporting frameworkinAustralia.Underthisframework,atwo-tierdifferentialreportingregime applies to all entities that prepare generalpurposefinancialstatements.Tier1aretheAustralianAccountingStandardsascurrentlyappliedandTier2isthereduceddisclosure regime which retains the recognition and measurement requirements ofAustralianAccountingStandardsbutwith reduced disclosure requirements. ThisStandardaddstooramendstheAustralianAccountingStandards–ReducedDisclosureRequirementsforAASB7FinancialInstruments:Disclosures,AASB12DisclosureofInterestsinOtherEntities,AASB101PresentationofFinancialStatementsandAASB127SeparateFinancialStatements.TheStandardmakesvariouseditorialcorrectionstoAustralianAccountingStandards–ReducedDisclosureRequirements(Tier2).ThesecorrectionsensurethattheStandardsreflectdecisionsoftheAASBregardingtheTier2requirements.

1January2013

1July2013

Theentityisyettoassessitsfullimpact.However,initialindicationsarethatitmayaffecttheentity’saccountingforitsavailable-for-salefinancialassets,sinceAASB9onlypermitstherecognitionoffairvaluegains and losses in other comprehensive incomeiftheyrelatetoequityinvestmentsthatarenotheldfortrading.Fairvaluegains and losses on available-for-sale debt investments, for example, will therefore havetoberecogniseddirectlyinprofitorloss. The impact of these standards will depend oninstructionsprovidedbyDTFonitsapplicabilitytotheentity.TheentitywillassessitsimpactonceDTFhasprovidedguidance on this standard.

Standard/ Interpretation SummaryApplicable for annual

reporting periods beginning on or after

Impact on Corporations financial statements

48


note 1. accounting policies (continued) (m) New Accounting Standards and Interpretations issued that are not yet effective (continued)

AASB119EmployeeBenefits,AASB2011-10AmendmentstoAustralianAccountingStandardsarisingfromAASB119andAASB2011-11AmendmentstoAASB119(September2011)arisingfromReducedDisclosureRequirements.

AASB2010-10FurtherAmendmentstoAustralianAccountingStandards–RemovalofFixedDatesforFirst-timeAdopters[AASB2009-11&AASB2010-7]

AASB2011-4AmendmentstoAustralianAccountingStandardstoremoveIndividualKeyManagementPersonnelDisclosureRequirements

AASB13FairValueMeasurement,AASB2011-8AmendmentstoAustralianAccountingStandardsarisingfromAASB13andAASB2012-1AmendmentstoAustralianAccountingStandards-FairValueMeasurement-ReducedDisclosureRequirements.

AASB2013-1AmendmentstoAASB1049-RelocationofBudgetaryReportingRequirements

AASB2012-1AmendmentstoAustralianAccountingStandards–FairValueMeasurement–ReducedDisclosureRequirements[AASB3,AASB7,AASB13,AASB140&AASB141]

These standards require the recognition of all remeasurementsofdefindedbenefitliabilites/assetsimmediatelyinothercomprehensiveincome(removaloftheso-called‘corridor’method)andthecalculationofanetinterestexpenseorincomebyapplyingthediscountratetothenetdefinedbenefitliabilityorasset. AASB1First-timeAdoptionofAustralianAccountingStandardswasamendedinDecember2010byeliminating references to fixed dates for one exemption and one exception dealing with financial assets and liabilities. RemovestheindividualkeymanagementpersonneldisclosurerequirementsfromAASB124RelatedPartyDisclosures,toachieveconsistencywiththeinternational equivalent standard and remove a duplicationoftherequirementswiththeCorporationAct2001.Theamendmentscannotbeadoptedearly. The standard explains how to measure fair value and aims to enhance fair value disclosures.

ThisStandardremovestherequirementsrelatingtothedisclosureofbudgetaryinformationfromAASB1049(withoutsubstantiveamendment).Allbudgetaryreportingrequirementsapplicabletopublic sector entities are now located in a single, topic-based,StandardAASB1055BudgetaryReporting. ThisStandardappliestoannualreportingperiodsbeginningonorafter1July2013.Earlierapplicationis permitted for annual reporting periods beginning onorafter1July2009butbefore1July2013,provided that the following are also adopted for thesameperiod:(a)AASB1053ApplicationofTiersofAustralianAccountingStandards;(b)AASB13FairValueMeasurement;and(c)AASB2011-8AmendmentstoAustralianAccountingStandardsarisingfromAASB13.

1January2013/ 1July2013

1January2013

1July2013

1January2013/ 1July2013

1July2014

1July2013

Theentityisyettoassessitsfullimpact.Theentitywillapplyamendedstandardfrom1July2013.

This amendment will not affect the financialstatementsoftheentity.

This amendment is expected to have a limited impact.

Theentityhasyettodeterminewhich,ifany,ofitscurrentmeasurement techniques will have to change as a result of the new guidance. It is therefore not possibletostatetheimpact,ifany,ofthenewrulesonanyoftheamounts recognised in the financial statements.However,applicationofthe new standard will impact the typeofinformationdisclosedinthenotes to the financial statements. The group will adopt the new standard from its operative date, which means that it will be applied in the annual reportingperiodending30June2014. This amendment is expected to have a limited impact.

TheCorporationwilladoptthenewstandard from its operative date, which means that it will be applied in the annual reporting period ending 30June2014.






note 1. accounting policies (continued) (m) New Accounting Standards and Interpretations issued that are not yet effective (continued)

AASB2012-5AmendmentstoAustralianAccountingStandardarisingfromAnnualImprovements-2009-2011Cycle

AASB1055BudgetaryReporting

These amendments are a consequence of the annual improvements process, which provides a vehicle for makingnon-urgentbutnecessaryamendmentstoStandards. AASB1053ApplicationofTiersofAustralianAccountingStandardsestablishesadifferentialreportingframeworkconsistingoftwotiersofreporting requirements for preparing general purpose financialstatements:(a)Tier1:AustralianAccountingStandards;and(b)Tier2:AustralianAccountingStandards–ReducedDisclosureRequirements.Tier1requirementsincorporateInternationalFinancialReportingStandards(IFRSs),includingInterpretations,issuedbytheInternationalAccountingStandardsBoard(IASB),withtheadditionofparagraphsontheapplicabilityofeachStandardintheAustralianenvironment.Publiclyaccountablefor-profitprivatesectorentitiesarerequiredtoadoptTier1requirements,andthereforearerequiredtocomplywithIFRSs.Furthermore,otherfor-profitprivatesectorentitiescomplyingwithTier1requirementswillsimultaneouslycomplywithIFRSs.SomeotherentitiescomplyingwithTier1requirementswillalsosimultaneouslycomplywithIFRSs.Tier2requirementscomprise the recognition, measurement and presentationrequirementsofTier1butsubstantiallyreduced disclosure requirements in comparison with Tier1.

1January2013

1July2014

This amendment is expected to have a limited impact.

The impact of these standards will dependoninstructionsprovidedbyDTFonitsapplicabilitytotheentity.TheentitywillassessitsimpactonceDTFhasprovidedguidanceonthisstandard.




50


note 2. Financial risk management objectives and policiesTheCorporation’sactivitiesexposeittoavarietyoffinancialrisks:marketrisk,creditriskandliquidityrisk.ThisnotepresentsinformationabouttheCorporation’sexposuretoeachoftheserisks,andtheobjectives,policiesandprocessesformeasuringandmanagingrisk.

TheCorporation’sBoardhastheoverallresponsibilityfortheestablishmentandoversightoftheCorporation’sriskmanagementframework.

TheCorporation’soverallriskmanagementprogramfocusesontheunpredictabilityoffinancialmarketsandseekstominimisepotentialadverseeffectsonthefinancialperformanceoftheCorporation.TheCorporationusesdifferentmethodstomeasuredifferenttypesofrisktowhichitis exposed.

Thesemethodsincludesensitivityanalysisinthecaseofinterestraterisksandageinganalysisforcreditrisk.

RiskmanagementiscarriedoutbytheAuditandRiskManagementCommitteeunderpoliciesapprovedbytheBoard.TheBoardprovideswrittenprinciplesforoverallriskmanagement,aswellaspoliciescoveringspecificareas,suchasforeignexchangerisk,interestraterisk,creditriskandinvestmentofexcessliquidity.

Aneffectiveframeworkisinplacetoadequatelyassess,monitor,manageandreport,thesignificantfinancialriskstowhichtheCorporationisexposed to as a result of, and in the course of its activities and responsibilities.ThemainriskstheCorporationisexposedtothroughitsfinancialinstrumentsareasfollows:

(a) Market risk

MarketriskistheriskthatchangesinmarketpriceswillaffectthefairvalueorfuturecashflowsoftheCorporation’sfinancialinstruments.Marketriskcomprisesofforeignexchangerisk,interestrateriskandotherpricerisk.TheCorporation’sexposuretomarketriskisprimarilythroughinterestraterisk,thereisinsignificantexposuretoforeignexchangeriskandinsignificantexposuretootherpricerisks.

Objectives,policiesandprocessesusedtomanagetheserisksaredisclosedintheparagraphsbelow:

(i) Interest rate risk TheCorporation’sexposuretomarketinterestratesrelatesprimarilytotheCorporation’slongtermborrowings.

TheCorporationminimisesitsexposuretointerestratechangesonitslongtermborrowingsbyholdingfixedratedebt.DebtissourcedfromTreasuryCorporationofVictoriaandismanagedwithinarangeofBoardapprovedlimitswithdebtlevelsandinterestratesbeingmonitoredregularly.InaccordancewithWannonWater’sTreasuryManagementPolicy,floatingdebtislimitedtolessthan20%ofthetotalborrowingportfolio.Thisdebtisrestrictedtoshorttermborrowings,whichlimitstheexposuretointerestrateriskfurther.

TheCorporationhasminimalexposuretointerestrateriskthroughitsholdingofcashassetsandotherfinancialassets.

(ii) Foreign exchange risk TheCorporationhaslimitedexposuretochangesintheforeignexchangerate.Borrowingsarenotconductedinforeigncurrencies.

WannonWatertransactsinforeigncurrenciesonlyinrareinstancesandforsmalldollarvaluetransactions,thereforetheassociatedriskis minimal.

Inmanagingforeigncurrencyrisk,WannonWatergenerallyusesforwardexchangecontractstohedgeitsforeigncurrencyriskinrespectofpurchases.

(iii) Other price risk TheCorporationhasnosignificantexposuretootherpricerisk.

Market risk sensitivity analysis Cash flow sensitivity analysis for variable rate instruments Achangeof1%ininterestratesconstantlyappliedduringthereportingperiodwouldincrease(decrease)equityandprofitbytheamountsshownbelow.Thisanalysisassumesthatallothervariablesremainconstant.Ithastakenintoconsiderationpastperformance,futureexpectations,economicforecastsandmanagement’sknowledgeandexperienceofthefinancialmarkets.TheCorporationbelievesthatamovementof1%ininterestratesisreasonableoverthenext12months.


note 2. Financial risk management objectives and policies (continued)

Market risk sensitivity analysis (continued)

Thefollowingtablesummarisestheimpactofincreases/decreasesoftherelevantinterestratesontheCorporation’spost-taxprofitfortheyearandequity.

(b) Credit risk CreditriskistheriskoffinanciallosstotheCorporationasaresultofacustomerorcounterpartytoafinancialinstrumentfailingtomeetitscontractualobligations.CreditriskarisesprincipallyfromtheCorporation’sreceivablesandfinancialassetsavailableforsale.

TheCorporation’sexposuretocreditriskisinfluencedbytheindividualcharacteristicsofeachcustomer.Thereceivablebalanceconsistsofalargenumberofresidentialandbusinesscustomerswhicharespreadacrossadiverserangeofindustries.Receivablebalancesaremonitoredonanon-goingbasistoensurethatexposuretobaddebtsisnotsignificant.TheCorporationhasinplaceapolicyandprocedureforthecollectionof overdue receivables.

AnanalysisoftheageingoftheCorporation’sreceivablesatreportingdatehasbeenprovidedinNote7.

(c) Liquidity risk LiquidityriskistheriskthattheCorporationwillnotbeabletomeetitsfinancialobligationsastheyfalldue.TheCorporation’spolicyistosettlefinancialobligationswithin30daysandintheeventofdisputemakepaymentswithin30daysfromthedateofresolution.

TheCorporationmanagesliquidityriskbymaintainingadequatereserves,bankingfacilitiesandreserveborrowingfacilitiesbycontinuallymonitoringforecastsandactualcashflowsandmatchingthematurityprofilesoffinancialassetsandfinancialliabilities.

TomanageliquidityriskWannonWaterhasinplaceanabilitytoaccessfundsviaovernightnotificationstoTreasuryCorporationofVictoriainaccordancewiththeTreasurer’sborrowingapprovallimits.UndertheStateofVictoria’scentralisedborrowingarrangement,TreasuryCorporationofVictoriahasassumedresponsibilityforsecuringadequateaccesstoglobalfinancialmarkets.Thus,theliquidityriskfacedbyWannonWateriscommensuratewiththeliquidityriskoftheStateofVictoria,whichisnotconsideredsignificant.

TheCorporation’sfinancialliabilitymaturitieshavebeendisclosedonNote19.

(d) Fair value measurements Thecarryingamountsoftradereceivablesandpayablesareassumedtoapproximatetheirfairvalueduetotheirshort-termnature.ThefairvalueoffinancialliabilitiesfordisclosurepurposesisestimatedbydiscountingthefuturecontractualcashflowsatthecurrentmarketinterestratethatisavailabletotheCorporationforsimilarfinancialinstruments.Thefairvalueofcurrentborrowingsapproximatethecarryingamount,as the impact of discounting is not significant.

ThecarryingamountandaggregatenetfairvaluesoffinancialassetsandfinancialliabilitiesatbalancedatehavebeenprovidedinNote19.

30 June 2013

30 June 2012

Carrying Amount

$’000

Carrying Amount

$’000

INTEREST RATE RISK

INTEREST RATE RISK

Result$’000

Result$’000

-1%

-1%

+1%

+1%

Equity$’000

Equity$’000

Result$’000

Result$’000

Equity$’000

Equity$’000

Financial assets CashandcashequivalentsReceivables

Financial liabilitiesPayables Interest bearing liabilities

Total increase / (decrease)

FinancialassetsCashandcashequivalentsReceivables

FinancialliabilitiesPayables Interest bearing liabilities

Totalincrease/(decrease)

3,471 (6) (6) 6 6 22,062 - - - -

6,876 - - - - 88,770 14 14 (14) (14)

8 8 (8) (8)

22 (4) (4) 4 4 21,329 - - - -

6,815 - - - - 89,470 13 13 (13) (13)

9 9 (9) (9)


52


2013 2012(a) Revenues $’000 $’000 Service charges Water 10,603 9,422Sewer 25,556 22,475 Total service charges 36,159 31,897 Usage charges Water 23,880 21,638 Trade waste 6,558 6,251 Total usage charges 30,438 27,889 Interest Interestonbankdeposits 16 24 Income from investments 32 10 Other 118 144 Total interest 166 178 Developer and customer contributions Feespaidbydevelopersandcustomers 921 12,730 Total developer and customer contributions 921 12,730 Assets received free of charge or for nominal consideration Assetsreceivedfreeofchargefromdevelopers 1,769 1,664 Total assets received free of charge or for nominal consideration 1,769 1,664 Government grants and contributions Governmentcontributions 1,340 621 Total government grants and contributions 1,340 621 Other income Rental 243 325Costrecoveries 2,101 1,157 Information statements 279 287Connectionandinspectionfees 352 467 Miscellaneous 2,912 2,813 Total other revenue 5,887 5,049

note 3. Critical accounting estimates and judgementsEstimatesandjudgementsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotherfactors,includingexpectationsoffutureeventsthatmayhaveafinancialimpactontheentityandthatarebelievedtobereasonableunderthecircumstances.

Theentitymakesestimatesandassumptionsconcerningthefuture.Theresultingaccountingestimateswill,bydefinition,seldomequaltherelatedactualresults.Therewerenoestimatesorassumptionsmadethathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyear.

note 4. Revenue and expense disclosures



2013 2012(b) Net gain/(loss) on disposal of non-current assets $’000 $’000 Cost of assets disposed Infrastructure (877) (3,083)Land (394) - Buildings (87) - Office equipment (19) (122) Motor vehicles (515) (347) Total written down value of assets disposed (1,892) (3,552) Proceeds of assets disposed Motor vehicle trade ins 539 438 Other asset sales 475 2 Total proceeds of asset disposed 1,014 440

Net gain/(loss) on disposal of non current assets (878) (3,112) (c) Expenses Employee benefits expense Salariesandwages (14,166) (13,396)Annualleave (1,130) (1,084)Longserviceleave (401) (754)Employersuperannuationcontributions (1,176) (1,100)Definedbenefitsuperannuation (152) (1,588) Total employee benefits expense (17,025) (17,922) Depreciation Landimprovements (13) (14)Buildings (500) (499) Infrastructure (19,548) (22,164) Other equipment (2,392) (2,297) Total depreciation (22,453) (24,974) Amortisation Intangible assets - computer software (909) (471) Total amortisation (909) (471) Supplies and services Chemicals (724) (865)Consultanciesandcontractors (8,278) (9,645)Electricity (2,995) (2,832) Other goods and services (7,277) (7,854) Total supplies and services (19,274) (21,196) Borrowing costs Interest on loans - other institutions (1) (3)Interestonloans-TCV (5,107) (5,065)Financialaccommodationlevy (871) (805) Total borrowing costs (5,979) (5,873)

note 4. Revenue and expense disclosures (continued)

54


2013 2012 $’000 $’000(a) Reconciliation of income tax to prima facie tax payable

Theincometaxexpenseforthefinancialyeardiffersfromtheamountcalculatedonthenetresult.Thedifferencesarereconciledasfollows:Netresultbeforeincometaxexpense 8,593 4,911 Incometaxcalculated@30%(2012:30%) 2,577 1,473 Taxeffectofamountswhicharenotdeductible/(taxable)incalculatingtaxableincome:Balancingdeductionondisposaloffixedassets-tax (610) (307)Non-deductibleexpenses 5 4 Income tax as reported in the comprehensive operating statement 1,972 1,170 (b) Deferred tax assets Thebalancecomprisestemporarydifferencesattributableto:Amountsrecognisedinthecomprehensiveoperatingstatement Prior and current tax losses 40,400 41,466 Provisions and accrued expenditure not deductible 1,707 1,792 42,107 43,258Movement Openingbalance1July 43,258 41,514Annualmovement (1,151) 1,744 Closing balance 30 June 42,107 43,258 (c) Deferred tax liabilities Thebalancecomprisestemporarydifferencesattributableto:Amountsrecognisedinthecomprehensiveoperatingstatement Depreciationandrevaluation (76,274) (75,616) Other (2,712) (2,718) (78,986) (78,334)Movement Openingbalance1July (78,334) (75,419)Annualmovement (652) (2,915) Closing balance 30 June (78,986) (78,334) (d) Net deferred tax liabilities Deferredtaxassets 42,107 43,258Deferredtaxliabilities (78,986) (78,334) Net deferred tax liabilities (36,879) (35,076)

note 5. income tax



2013 2012 $’000 $’000

Cashonhand 2 2Cashatbank 15 22Depositsatcall 3,456 - 3,473 24 (a) Reconciliation to cash as at the end of year Theabovefiguresarereconciledtocashattheendofthefinancialyearasshown inthecashflowstatementasfollows: Balanceasabove 3,473 24

Balances as per cash flow statement 3,473 24 (b) Deposits at call Thedepositisbearingafloatinginterestrateat30June2013of2.70%(2012:n/a) 3,456 -

Current Tariffs and charges 4,143 3,131Accruedtariffsandcharges 9,040 9,061Less:Provisionforimpairedreceivables (55) (62) 13,128 12,130 AmountsowingfromtheVictorianGovernment 177 129Schemes/Receivables 73 53 250 182 Other receivables 2,476 1,898GSTreceivable 367 520 2,843 2,418 Total current receivables 16,221 14,730 Non-current Schemes/Receivables 241 89Other receivables 14,640 15,571 Total non-current receivables 14,881 15,660 Total receivables 31,102 30,390 (a) Provision for impaired receivables Asat30June2013,currentreceivablesoftheCorporationwithanominalvalueof$54,950(2012:$62,401)wereimpaired.Theamountoftheprovisionis$54,950(2012:$62,401).Theindividuallyimpairedreceivablesmainlyrelatetocustomerswhoareinunexpecteddifficulteconomicsituations. It was assessed that a portion of the receivables is expected to be recovered.

Theageingofthesereceivablesisasfollows: 1to3months 5 93to6months 18 19Over6months 32 34

55 62

note 6. Cash and cash equivalents

note 7. Receivables

56


2013 2012 $’000 $’000Movementsintheprovisionforimpairedreceivablesareasfollows: Asat1July 62 55Provisionforimpairmentrecognisedduringtheyear 30 88Receivableswrittenoffduringtheyearasuncollectible (37) (81) 55 62 The creation and release of the provision for impaired receivables has been included as an expense in the comprehensive operating statement. Amountschargedtotheprovisionaccountaregenerallywrittenoffwhenthereisnoexpectationofrecoveringadditionalcash. (b) Past due but not impaired trade receivables Asof30June2013,tradereceivablesof$2,176,935(2012:$1,632,090)werepastduebutnotimpaired.Theserelatetoanumberofindependentcustomersforwhomthereisnorecenthistoryofdefault.Theageinganalysisofthesereceivablesisasfollows: 1to3months 1,068 7173to6months 601 461Over6months 508 454 2,177 1,632 The other amounts within receivables do not contain impaired assets and are not past due. Basedoncredithistory,itisexpectedthattheseamountswillbereceivedwhendue.

Current Storesandconsumables-atcost 624 606 Total inventories 624 606

Current Prepaid expenses 730 626 Total other assets 730 626

Freeholdlandheldforsale - 175Other assets held for sale - 88 Total other assets - 263

note 7. Receivables (continued)

note 8. inventories

note 9. Prepayments

Note 10. Assets classified as held for sale



2013 2012 $’000 $’000(a) Classes of property, plant and equipment Land Freehold-atfairvalue 26,624 26,843Crown-atfairvalue 146 146Landimprovements-atfairvalue 530 530Lessaccumulateddepreciation (35) (22)

27,265 27,497 Buildings Atfairvalue 31,089 30,980Lessaccumulateddepreciation (8,708) (8,208)

22,381 22,772 Water Infrastructure Atcost 18,354 13,521Atfairvalue 553,597 558,628Lessaccumulateddepreciation (284,204) (275,527)

287,747 296,622 Sewer Infrastructure Atcost 19,821 11,112Atfairvalue 345,646 346,557Lessaccumulateddepreciation (184,369) (177,789)

181,098 179,880 Plant & equipment (including motor vehicles) Atcost 18,023 16,377Lessaccumulateddepreciation (8,996) (7,362)

9,027 9,015 Under construction - at cost 30,088 17,501 Total property plant and equipment 557,606 553,287

AnindependentvaluationofWannonWater’sproperty,plantandequipmentwasperformedbyagentsoftheValuer-GeneralVictoriatodeterminethefairvalueofland,buildingsandinfrastructure.ThevaluationsconformtoAustralianValuationStandardsandAustralianAccountingStandards.

Theeffectivedateofthevaluationis30June2011.

BuildingwerevaluedbyEganNationalValuers(Vic).Fairvaluewasdeterminedastheamountforwhichanassetcouldbeexchangedbetweenknowledgablewillingpartiesinanarm’slengthtransaction.Wherethereisnoevidenceoffairvaluebecauseofthespecialisednatureoftheasset,depreciatedreplacementcost(DRC)wasused.DRCisthecurrentreplacementcostofanassetless,whereapplicable,accumulateddepreciationcalculatedonthebasisofsuchcosttoreflectthealreadyconsumedorexpiredfutureeconomicbenefitsoftheasset.Anallowancewasmade,forthecontinueduseasaspecialpurposeassetforthefulfilmentofcommunityserviceobligations.

LandwasvaluedbyEganNationalValuers(Vic).Fairvaluewasdeterminedusingthedepreciatedreplacementcostmethod,withcurrentreplacementcosttakingintoconsiderationthecontinueduseasaspecialpurposeassetforthefulfilmentofcommunityserviceobligations.

BuildingsrelatedtowaterandsewerinfrastructurewerevaluedbyAECOM.Fairvaluewasdeterminedusingthedepreciatedreplacementcostmethod, with current replacement cost determined based on the optimum equivalent.

Infrastructureassetswereindependentlyvaluedat30June2011bytheValuerGeneralofVictoria(usingAECOM).ThevaluationmethodologyusedwasdepreciatedreplacementcostsusingaGreenfieldsapproachforassessingcostsandonlyincludedassetsthatwereconstructedbefore1July2010.

Costmodelswerebuiltbasedonactualconstructioninformationcomplimentedbyavarietyofinformationsourcesincludingcapacity,height,materialtype,lengthanddepththatcouldbeappliedbroadlyacrosstherangeofassetsineachcategory.

note 11. Property, plant and equipment

58


(b) Movements during the reporting period

2012-13 Land Buildings Infrastructure Plant & In the course Total Equipment of construction $’000 $’000 $’000 $’000 $’000 $’000 Opening WDV at 1 July 2012 27,497 22,772 476,502 9,015 17,501 553,287 Additions - 109 9,393 2,904 16,144 28,550 Disposals (219) - (1,033) (533) - (1,785) Transfers between categories - - 3,524 33 (3,557) - Depreciation expense (13) (500) (19,541) (2,392) - (22,446) Closing WDV at 30 June 2013 27,265 22,381 468,845 9,027 30,088 557,606 2011-12 Land Buildings Infrastructure Plant & In the course Total Equipment of construction $’000 $’000 $’000 $’000 $’000 $’000 OpeningWDVat1July2011 27,686 23,116 478,318 9,382 12,073 550,575 Additions - 243 18,697 2,112 11,706 32,758 Disposals - - (3,081) (469) - (3,550) Transfersbetweencategories - - 4,732 287 (6,278) (1,259) Transferredtoassets (175) (88) - - - (263)classified as held for sale Depreciationexpense (14) (499) (22,164) (2,297) - (24,974) ClosingWDVat30June2012 27,497 22,772 476,502 9,015 17,501 553,287

note 11. Property, plant and equipment (continued)

note 12. intangible assets 2013 2012(a) Classes of intangibles $’000 $’000 Computersoftwareatcost 4,674 4,191Less:Accumulatedamortisation (2,608) (1,706)

2,066 2,485 Bulkwaterentitlement 4,750 4,750 Total intangibles 6,816 7,235



(b) Movements during the reporting period 2012-13 Software Bulk Water Total

Entitlement

$’000 $’000 $’000

Opening WDV at 1 July 2012 2,485 4,750 7,235 Additions 490 - 490 Amortisation expense (909) - (909)

Closing WDV at 30 June 2013 2,066 4,750 6,816 2011-12 Software Bulk Water Total

Entitlement

$’000 $’000 $’000

OpeningWDVat1July2011 1,105 4,000 5,105Additions 1,851 750 2,601Amortisationexpense (471) - (471)

ClosingWDVasat30June2012 2,485 4,750 7,235

note 12. intangible assets (continued)

note 13. Payables

note 14. interest bearing liabilities

2013 2012 $’000 $’000Current Trade creditors 4,978 5,129Othercreditors-Superannuationdefinedbenefits 1,458 - Accruedloaninterest 44 36Contractdeposits 253 89Income received in advance 187 139 Total current payables 6,920 5,393 Non-Current Othercreditors-Superannuationdefinedbenefits - 1,458 Total non-current payables - 1,458

Total Payables 6,920 6,851 Sensitivity analysis Forananalysisofthesensitivityofpayablestointerestrateriskrefertonote2.

Current Secured Bankloans 9 12TCVloans 11,034 10,688 Total current interest bearing liabilities 11,043 10,700 Non-current Secured Bankloans - 9TCVloans 77,727 78,761 Total non-current interest bearing liabilities 77,727 78,770 Security over borrowings BorrowingsaresecuredoverthefuturetariffrevenueofWannonRegionWaterCorporation.

60


note 14. interest bearing liabilities (continued)

Note 15. Employee benefits

2013 2012 $’000 $’000Financing arrangements Unrestrictedaccesswasavailableatthereportingdatetothefollowinglinesofcredit: Credit standby arrangements Total facilities Bankoverdraft 250 250 Total facilities 250 250 Unusedatbalancedate Bankoverdraft 250 250 Total unused at balance date 250 250 Thebankoverdraftfacilitymaybedrawnatanytimeandmaybeterminatedbythebankwithoutnotice.Theinterestrateat30June2013was5.37%(2012:6.17%)ontheoverdraftfacility. Risk exposures TheexposureoftheCorporation’sborrowingstointerestratechangesandthecontractualrepricingdatesatthebalancedatesareasfollows: 6monthsorless 5,000 10,1926-12months 5,509 11-5years 40,170 40,793Over5years 38,090 38,484 88,769 89,470 Currentborrowings 11,043 10,700Non-currentborrowings 77,726 78,770

88,769 89,470 Foranalysisofthesensitivityoftheborrowingstointerestrateriskrefertonote2.

Current Annualleave 955 910Longserviceleave-unconditionalshortterm-measuredatnominalvalue 288 202Longserviceleave-unconditionallongterm-measuredatpresentvalue 1,909 1,789Other leave 62 59 Total current 3,214 2,960 Non-current Longserviceleave-conditional 642 769 Total non-current 642 769 Aggregate carrying amount of employee benefits Current 3,214 2,960Non-current 642 769 Total employee benefits 3,856 3,729



Note 15. Employee benefits (continued)

note 16. Contributed capital

note 17. Reserves

note 18. accumulated funds

2013 2012Employee numbers No. No. Employeenumbersatendoffinancialyear 212 217 Asexplainedinnote1(e),someamountsforlongserviceleavearemeasuredattheirpresentvalues. Thefollowingassumptionswereadoptedinmeasuringpresentvalueoflongserviceleaveentitlements: Weightedaverageincreaseinemployeecosts 4.50% 4.31%Weightedaveragediscountrates 3.79% 3.06%Weightedaveragesettlementperiod(yearsfrom30June) 6.20 6.36

2013 2012 $’000 $’000 Openingbalanceat1July 441,165 440,347 CapitaltransactionswiththeStateinitscapacityasownerarisingfrom: Grant-WarrnamboolRoofWaterHarvestingProject - 476Grant-SmallTownsWaterQualityFund - 342 Closingbalanceat30June 441,165 441,165

Assetrevaluationreservesurplus/(deficit) 13,325 11,744 Movements in reserves Infrastructurerevaluationreservesurplus/(deficit) Balance1July 11,744 11,857Transferfrom/(to)accumulatedfundsondisposal 1,581 (113)DisposalofRe-ValuedAssets(netofTaxEffect) Balance30June 13,325 11,744 The asset revaluation reserve is used to record asset revaluation increments anddecrementsinthevalueofnon-currentphysicalassets.

Openingbalanceat1July 4,396 542 Netresultfortheperiod 6,621 3,741Transferfrom/(to)assetrevaluationreserve (1,581) 113 Closingbalanceat30June 9,436 4,396

62


(a) Interest rate risk exposure ThefollowingtablesetsouttheCorporation’sexposuretointerestraterisk,includingthecontractualrepricingdatesandtheeffectiveweightedaverageinterestratebymaturityperiods.

ExposuresarisepredominatelyfromassetsandliabilitiesbearingvariableinterestratesastheCorporationintendstoholdfixedrateassetsandliabilitiestomaturity. Weighted Floating 1 year 1 - 2 2 - 3 3 - 4 4 + Non Total average interest or less years years years years interest effective rate bearing interest rate % $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

2013 Financial assets: -Cash 2.70% 3,471 - - - - - 2 3,473 -Receivables1 7.80% - 6,591 1,003 1,088 1,180 11,446 754 22,062 Total 3,471 6,591 1,003 1,088 1,180 11,446 756 25,535 Financial liabilities: -Payables1 - - - - - - - 6,876 6,876 - Interest bearing liabilities 5.60% - 11,043 10,511 10,486 10,521 46,209 - 88,770 Total - 11,043 10,511 10,486 10,521 46,209 6,876 95,646

2012 Financialassets: -Cash 3.50% 22 - - - - - 2 24-Receivables1 8.66% - 4,608 921 984 1,067 12,484 1,265 21,329 Total 22 4,608 921 984 1,067 12,484 1,267 21,353 Financialliabilities: -Payables1 - - - - - - - 6,815 6,815-Interestbearingliabilities 5.84% 189 10,511 11,042 10,511 10,486 46,730 - 89,469 Total 189 10,511 11,042 10,511 10,486 46,730 6,815 96,284 Note1-Theamountdisclosedinreceivablesandpayablesexcludesstatutoryamounts.

(b) Net fair value of financial assets and liabilities Thecarryingamountsandfairvaluesoffinancialassetsandfinancialliabilitiesatbalancedateare: 2013 2012 Carrying Fair Carrying Fair On balance sheet amount value amount value $’000 $’000 $’000 $’000 Financial assets -Cashandcashequivalents 3,473 3,473 24 24 - Trade and other receivables 22,062 19,649 21,329 18,817 Total 25,535 23,122 21,353 18,841 Financial liabilities -Payables 6,876 6,876 6,815 6,774 - Interest bearing liabilities 88,770 80,480 89,469 81,673 Total 95,646 87,356 96,284 88,447

note 19. Financial instruments



ThefollowingcommitmentsareinclusiveofGSTwhereapplicable. Capital commitments 2013 2012 $’000 $’000 At30June2013,theCorporationhadcapitalcommitmentsfortheacquisitionand/or constructionofplantandequipmentnotrecognisedasliabilitiespayable,tobepaidasfollows: Withinoneyear 6,030 17,400Onetofiveyears - - Total capital commitments 6,030 17,400 Operating commitments At30June2013,theCorporationhadoperatingcommitmentsfortheprovisionofcontractand consultancyservicestomeettheCorporation’soperationsnotrecognisedasliabilitiespayableto bepaidasfollows: Withinoneyear 2,720 2,679Onetofiveyears 795 2,688 Total operating commitments 3,515 5,367 Environmental Contribution commitments At30June2013,theCorporationhadenvironmentalcontributioncommitmentsnotrecognised asliabilitiespayable,tobepaidasfollows: Withinoneyear 2,557 1,569Onetofiveyears 5,114 7,971 Total environmental contribution commitments 7,671 9,540 Total commitments for expenditure 17,216 32,307

note 20. Commitments

64


DuringthefinancialyearWannonWaterreceivedaclaimforadditionalcostsfromacontractorforworksundertakenatthePortlandwaterreclamationplant.TheSuperintendenthasrejectedtheclaim.However,withoutprejudice,WannonWaterhasrecognisedanundisclosedamountinthe2012-13financialyearrelatingtotheclaim.WannonWaterexpectstheclaimtobesettledwithinthenext12months.

note 21. Contingent liabilities and contingent assets

Post-employment benefit WannonWatermakesemployersuperannuationcontributionsinrespectofmostofitsemployeestotheLocalAuthoritiesSuperannuationFund(theFund).ObligationsforcontributionsarerecognisedasanexpenseintheComprehensiveOperatingStatementwhentheyaredue.TheFundhastwocategoriesofmembership,accumulationanddefinedbenefit,eachofwhichisfundeddifferently.

Accumulation TheFund’saccumulationcategory,VisionSuperSaver,receivesbothemployerandemployeecontributionsonaprogressivebasis.Employercontributionsarenormallybasedonafixedpercentageofemployeeearnings(9%requiredunderSuperannuationGuaranteeLegislation).NofurtherliabilityaccruestotheemployerasthesuperannuationbenefitsaccruingtoemployeesarerepresentedbytheirshareofthenetassetsoftheFund.

Effectivefrom1July2013,theSuperannuationGuaranteecontributionratewillincreaseto9.25%,andwillprogressivelyincreaseto12%by2019.

Defined benefit plan TheFund’sDefinedBenefitPlan(thePlan)isamulti-employersponsoredplan.AsthePlan’sassetsandliabilitiesarepooledandarenotallocatedbyemployer,theActuaryisunabletoreliablyallocatebenefitliabilities,assetsandcostsbetweenemployers.Asprovidedunderparagraph32(b)ofAASB119EmployeeBenefits,WannonWaterdoesnotusedefinedbenefitaccountingforthesecontributions..

WannonWatermakesemployercontributionstothedefinedbenefitcategoryoftheFundatratesdeterminedbytheTrusteeontheadviceoftheFund’sActuary.OnthebasisoftheresultsofthemostrecentfullactuarialinvestigationconductedbytheFund’sActuaryasat31December2011,WannonWatermakesthefollowingcontributions: -9.25%ofmembers’salaries(sameaspreviousyear),asdeterminedbytheFund’sTrustee; -thedifferencebetweenresignationandretrenchmentbenefitspaidtoanyretrenchedemployees,pluscontributionstax(sameaspreviousyear) -EmployeesarealsorequiredtomakemembercontributionstotheFund.Assuch,assetsaccumulateintheFundtomeetmemberbenefits,asdefinedintheTrustDeed,astheyaccrue.

TheFundsurplusordeficit(iethedifferencebetweenfundassetsandliabilities)iscalculateddifferentlyforfundingpurposes(iecalculatingrequiredcontributions)andforthecalculationofaccruedbenefitsasrequiredinAAS25toprovidethevaluesneededfortheAASB119disclosureintheCorporation’sfinancialstatements.AAS25requiresthatthepresentvalueofthedefinedbenefitliabilitybecalculatedbasedonbenefitsthathaveaccruedinrespectofmembershipoftheplanuptomeasurementdate,withnoallowanceforfuturebenefitsthatmayaccrue.

FollowinganactuarialreviewoftheFundbytheTrusteeasat31December2011,itwasannouncedinJuly2012thatafundingshortfallof$453millionhasbeendetermined.WannonWaterhasbeennotifiedthatitsshareofthisshortfallrequiresanadditionalcontributionof$1.458million,payable1July2013.ThisadditionalamountwasrecognisedinWannonWater’saccountsasat30June2012.ThisunpaidamountisincludedintheBalanceSheetinOthercreditors-Superannuationdefinedbenefits(seenote13)

note 22. Superannuation



Accounting standard disclosure TheFund’sliabilityforaccruedbenefitswasdeterminedbytheActuaryat31December2011 pursuanttotherequirementsofAustralianAccountingStandardsBoardAAS25asfollows: 31 December 2011 $’000 NetMarketValueofAssets 4,315,324 AccruedBenefits 4,642,133 DifferencebetweenAssetsandAccruedBenefits (326,809) VestedBenefits(MinimumsumwhichmustbepaidtomemberswhentheyleavetheFund) 4,838,503

ThefinancialassumptionsusedtocalculatetheAccruedBenefitsforthedefinedbenefitcategoryoftheFundwere: -NetInvestmentReturn 7.50%p.a. -SalaryInflation 4.25%p.a. -PriceInflation 2.75%p.a.

Superannuationcontributionsforthereportingperiodareincludedaspartofsalariesandwagesandassociatedcostsin thestatementofcomprehensiveincomeoftheCorporation. WannonWatercontributesinrespectofit’semployee’stothefollowingsuperannuationschemes: EmployerContributionstoSuperannuationFunds: 2013 2012Fund $’000 $’000 StateSuperannuationFund-Definedbenefits 59 57VisionSuper-Definedbenefits 128 135VisionSuper-AccumulationPlan 1,019 909Other 119 125 Total contributions 1,325 1,226Asatthereportingdate,therewerenoloanstoorfromWannonWatertoanyoftheabovefunds.

(a) Responsible persons

Thenamesofpersonswhowereresponsiblepersonsatanytimeduringthefinancialyearwere: TheHon.PeterWalshMLA,MinisterforWater

Board Chairperson MrJohnVogelsDeputyChairperson MrRobWallisDirector MrRodCouttsDirector MsKateFraserDirector MrFrankZeiglerDirector MsGeorginaGubbinsDirector MrRussellWorlandManagingDirector/AccountableOfficer MrGrantGreen

note 22. Superannuation (continued)

Note 23. Responsible persons and executive officer disclosures

66


Remuneration of responsible persons RemunerationpaidtoMinistersisreportedintheAnnualReportoftheDepartmentofPremierandCabinet.OtherrelevantinterestsaredeclaredintheRegisterofMembers’InterestswhicheachmemberoftheParliamentcompletes.

Thenumberofresponsibleperson’swhoseremunerationfromtheCorporationwaswithinthespecifiedbandswereasfollows: Income band 2013 2012 No. No.$0-$9,999 1 3$10,000-$19,999 - 5$20,000-$29,999 5 2$30,000-$39,999 - 1$40,000-$49,999 1 - $300,000-$309,999 - 1$310,000-$319,999 1 -

Total numbers 8 12 2013 2012 $’000 $’000RemunerationreceivedordueandreceivablefromtheCorporationinconnectionwiththemanagementoftheCorporation (includesterminationpaymentsandbonusespaid) 485 487

Note 23. Responsible persons and executive officer disclosures (continued)

Other related party transactions OtherrelatedtransactionsandloansrequiringdisclosureundertheDirectionsoftheMinisterforFinancehavebeenconsideredandthereareno matters to report. (b) Executive Officers’ remuneration Thenumberofexecutiveofficers,otherthantheresponsiblepersons,whosetotalremunerationfallswithinthespecifiedbandsabove$100,000areasfollows: Total Remuneration Base Remuneration

Income band 2013 2012 2013 2012 No. No. No. No. $110,000-$119,999 - 1 - 1$130,000-$139,999 - 1 - 1$140,000-$149,999 1 - 2 - $150,000-$159,999 1 1 1 1$160,000-$169,999 1 1 1 1$180,000-$189,999 - 1 - 1$190,000-$199,999 1 - 1 - $220,000-$229,999 1 - - -

Total numbers 5 5 5 5Total annualised employee equivalent (AEE) 4.41 4.46 4.41 4.46Note : Annualised employee equivalent is based on working 38 ordinary hours per week over the reporting period. 2013 2012 2013 2012 $’000 $’000 $’000 $’000Remunerationreceivedorreceivablebyexecutivesin respectofthemanagementoftheCorporationduring thereportingperiodwas: 883 767 812 767 Totalremunerationincludesannualleaveandlong-serviceleavepaymentsmadeuponcessationofemployment.

Nocontractorswereengagedduringtheperiodasexecutiveofficers.



2013 2012 $’000 $’000Netresultfortheperiodafterincometax 6,621 3,741Add/(less) non-cash flows in net result Depreciationandamortisation 23,362 25,445Netlossondisposalofnon-currentassets 878 3,064Infrastructureassetscontributedatnocost (3,569) (3,524)

Changes in Assets and Liabilities Decrease(increase)inreceivables (712) (13,338)Decrease(increase)ininventories (18) 6Decrease(increase)inprepayments (104) 128Increase(decrease)inpayables (1,147) 2,174Increase(decrease)inemployeebenefits 127 579Increase(decrease)indeferredtaxliabilities 1,803 1,171 Net cash (outflow)/Inflow from operating activities 27,241 19,446

Duringtheyearthefollowingfeeswerepaidorpayableforservicesprovidedbytheauditoroftheparententity,itsrelatedpracticesandnon-relatedauditfirms: (a) Victorian Auditor-General’s Office Auditandreviewoffinancialstatements 52 51 (b) Non-Victorian Auditor-General’s Office audit firms Auditandotherassuranceservices 82 146 Total auditors’ remuneration 134 197

NomattersorcircumstanceshavearisensincetheendofthereportingperiodwhichsignificantlyaffectedormaysignificantlyaffecttheoperationsoftheCorporation,theresultsofthoseoperations,orthestateofaffairsoftheCorporationinfuturefinancialyears.

The authority has made the following ex gratia payments during the period: Exgratiapayments 5 7 Theseex-gratiapaymentsrelatedtosettlementofminorindividualclaims.

Note 24. Reconciliation of profit/(loss) for the period after related income tax to net cash flows from operating activities

note 26. Remuneration of auditors

note 27. Events occurring after the balance sheet date

note 25. Ex gratia Payments

68

Accountable officer’s and chief finance and accounting officer’s declaration

TheattachedfinancialstatementsfortheWannonRegionWaterCorporationhavebeenpreparedinaccordancewithStandingDirection4.2oftheFinancial Management Act 1994,applicableFinancialReportingDirections,AustralianAccountingStandardsincludingInterpretations,andothermandatoryprofessionalreportingrequirements.

Wefurtherstatethat,inouropinion,theinformationsetoutintheComprehensiveOperatingStatement,BalanceSheet,StatementofChangesinEquity,CashFlowStatementandaccompanyingnotes,presentsfairlythefinancialtransactionsduringtheyearended30June2013andfinancialpositionoftheCorporationat30June2013.

Atthetimeofsigning,wearenotawareofanycircumstancewhichwouldrenderanyparticularsincludedinthefinancialstatements to be misleading or inaccurate.

Weauthorisetheattachedfinancialstatementsforissueon16August2013.

JAVogels Chairman WannonRegionWaterCorporation

GVGreen ManagingDirector WannonRegionWaterCorporation

SJWaterhouse ChiefFinance&AccountingOfficer WannonRegionWaterCorporation

DATE:This16thdayofAugust,2013

CERTiFiCaTiOn


audiTOR-gEnERal’S REPORT

70



PERFORmanCE REPORT

Financial Performance indicators

F1 internal Financing Ratio(Netoperatingcashflow–dividends)/capitalexpenditure 1,2 63.10% 113.47% 90.94% 24.77%F2 gearing RatioTotaldebt(includingfinanceleases)/totalassets 15.10% 14.79% 15.84% 6.63%F3 interest Cover (EBiT)Earningsbeforenetinterestandtaxexpense/net interestexpense 3,4 2.0times 2.7times 0.7times 285.71%F4 interest Cover (Cash)Cashflowfromoperationsbeforenetinterest andtaxpayments/netinterestpayments 1,4 4.9times 6.2times 4.9times 26.53%

notes:

1. Theresultisfavourabletotargetandlastyear’sresultlargelyduetoincreasedoperatingcashflows.Highercashreceiptsfromtariffs,chargesandgrants,andlowercashpaymentstosuppliersforgoodsandservicescontributedtothefavourable result.

2. Thecashoutlayforcapitalexpenditureislowerthantargetandlowerthanlastyear.Thishadapositiveimpactontheratio.

3. Theresultissignificantlyhigherthantargetandlastyear’sresultduetoacombinationoflowerexpenditureongoodsandservices and higher revenue from tariffs, charges and grant revenue.

4. Increasedoperatingcashflowscontributedtolowerborrowingstofundcapitalexpenditureduringtheyear.Thisresultedinlowerthantargetinterestexpensepayments,whichfurtherenhancedthefavourableresult.

Performance Indicator Notes 2011/12Result

2012/13Result

2012/13Target

Variance%

72

Service Performance indicators

S1 Water supply interruptions S1.1 Numberofcustomersreceiving5unplanned interruptionsintheyear 0 0 0 0%S2 interruption time indicators S2.1 Averagedurationofunplannedwater 1 89 111 108 -3% supplyinterruptions minutes minutes minutesS3 Restoration of water supply S3.1 Unplannedwatersupplyinterruptions restoredwithin5hours 98% 99% 97% 2%S4 Reliability of sewerage collection services S4.1 Sewagespillsfromreticulationandbranchsewers (priority1and2) 2 67 56 90 38%S5 Containment of sewage spillages S5.1 Sewagespillscontainedwithin5hours 100% 100% 98% 2%S6 Customer complaints indicators S6.1 Waterqualitycomplaintsper1,000customers 3 1.3 0.8 3.0 73%S6.2 Sewerageservicequalityandreliability complaintsper1,000customers 2 0.1 0.1 0.8 88%S6.3 Billingcomplaintsper1,000customers 4 2.8 3.1 3.0 -3%S6.4 Sewageodourcomplaintsper1,000customers 5 0.2 0.2 0.8 75%

notes:

1. Severalcomplexrepairsduringthereportingperiodresultedinlongerunplannedwatersupplyinterruptionsandincreasedtheaveragedurationofunplannedwatersupplyinterruptionscomparedtolastyear.

2. Theresultisbothfavourabletotargetandlastyear’sresultduetoaproactiveprogramofsewerinspectionsbeingimplemented.

3. Theresultisbothfavourabletotargetandlastyear’sresultduetotargetedwaterflushingprogramsandimprovedwatertreatment.

4. Theincreasecomparedtolastyearisattributabletohighercustomerbills,theresultofhigherfeesandchargesandhigherwaterusebycustomers.

5. Theresultisfavourabletotargetduetothemonitoringofventingsystemsandchemicaldosingatsewerpumpstationsto minimise odours.


2012/13Result

2012/13Target

Variance%

PERFORmanCE REPORT


Environmental Performance indicators

E1 Reuse indicators E1.1 Effluentreuse 1 13% 18% 30% -40%E1.2 Biosolidsreuse 100% 100% 100% 0%E2 Sewage treatment standards E2.1 Numberofanalysescomplyingwithlicence agreementsas%ofsamples 2 96% 96% 90% 7%

notes:

1. Theresultisbelowtargetduetothedecisionnottoproceedwithconstructionofinfrastructuretoupgradethequalityoftreatedeffluentavailableforreuseatamajorcoastalwaterreclamationplant.

2. The favourable result compared to target is due to the ongoing effective management of water reclamation plants.


2012/13Result

2012/13Target

Variance%

74

Certification of Performance Report for 2012/13

WecertifythattheaccompanyingPerformanceReportofWannonRegionWaterCorporationinrespectofthe2012/13financialyearispresentedfairlyinaccordancewiththeFinancial Management Act 1994.

ThestatementoutlinestherelevantperformanceindicatorsasdeterminedbytheresponsibleMinister,theactualresultsachievedforthefinancialyearagainstpre-determinedperformancetargetsandtheseindicators,andanexplanationofanysignificantvariance between the actual results and performance targets.

Asatthedateofsigning,wearenotawareofanycircumstanceswhichwouldrenderanyparticularsinthePerformanceReportto be misleading or inaccurate.

JAVogels

Chairman

GVGreen

ManagingDirector

DATE:This16thdayofAugust,2013

CERTiFiCaTiOn



76



aPPEndiXOnE

Disclosure index

The2012/13annualreportofWannonRegionWaterCorporationispreparedinaccordancewithallrelevantVictorianlegislation.Thisindexhasbeenpreparedtofacilitateidentificationofthecorporation’scompliancewithstatutorydisclosurerequirements.

REPORT OF OPERATIONS

Charter and purposeFRD22D MannerofestablishmentandtherelevantMinister 7

FRD22D Objectives,functions,powersandduties 3,7

FRD22D Natureandrangeofservicesprovided 7

Management and structureFRD22D Organisationalstructure 33

Financial and other informationFRD10 Disclosureindex 77

FRD12A Disclosureofmajorcontracts 35

FRD22D Operationalandbudgetaryobjectivesandperformanceagainstobjectives 10,71-73

FRD22D Employmentandconductprinciples 20

FRD22D Occupationalhealthandsafetypolicy 21

FRD22D Summaryofthefinancialresultsfortheyear 10

FRD22D Significantchangesinfinancialpositionduringtheyear 13

FRD22D Majorchangesorfactorsaffectingperformance 10

FRD22D Subsequentevents 13

FRD22D ApplicationandoperationofFreedom of Information Act1982 34

FRD22D Compliancewithbuildingandmaintenanceprovisionsof Building Act 1993 35

FRD22D StatementonNationalCompetitionPolicy 35

FRD22D ApplicationandoperationoftheProtected Disclosures Act2012 33-34

FRD22D Detailsofconsultanciesover$10,000 35

FRD22D Detailsofconsultanciesunder$10,000 35

FRD22D Statementofavailabilityofotherinformation 34-35

FRD25A VictorianIndustryParticipationPolicydisclosures 35

FRD27B Presentationandreportingofperformanceinformation 71-73

FRD29 Workforcedatadisclosures 20

FRD30A Standardrequirementsforthedesignandprintofannualreport 1-84

SD4.5.5 Riskmanagementcomplianceattestation 13

SD4.2(g) Generalinformationrequirements 10-13

SD4.2(j) Sign-offrequirements 4

Ministerial Reporting DirectionsMRD01 Performancereporting 71-76

MRD02 Reportingonwaterconsumptionanddroughtresponse 15-18

MRD03 Environmentalandsocialsustainabilityreporting 15,22-23

MRD04 Disclosureofinformationonbulkentitlements,transfersofwaterentitlements, allocationsandlicences,irrigationwaterusageandlicenceentitlements 24-28

MRD05 Annualreportingofmajornon-residentialwaterusers 17-18

Legislation Requirement Page reference

78

FINANCIAL STATEMENTS

Financial statements required under part 7 of the FMASD4.2(a) Statementofchangesinequity 39

SD4.2(b) Statementcomprehensiveincome 37

SD4.2(b) Balancesheet 38

SD4.2(b) Cashflowstatement 40

Other requirements understanding directions 4.2SD4.2(c) CompliancewithAustralianaccountingstandardsand otherauthoritativepronouncements 41

SD4.2(c) CompliancewithMinisterialDirections 41

SD4.2(d) Roundingofamounts 41

SD4.2(c) Accountableofficer’sdeclaration 68

SD4.2(f) CompliancewithModelFinancialReport 37-67

Other disclosures as required by FRDs in notes to the financial statementsFRD03A Accountingfordividends 47

FRD07A Earlyadoptionofauthoritativeaccountingpronouncements 47-49

FRD11 Disclosureofex-gratiapayments 67

FRD17A Longserviceleavewageinflationanddiscountrates 45

FRD21B Responsiblepersonandexecutiveofficerdisclosures 65-66

FRD102 Inventories 43,56

FRD103D Non-currentphysicalassets 43-45,57

FRD104 Foreigncurrency 41,50

FRD105A Borrowingcosts 45,59-60

FRD106 Impairmentofassets 46

FRD109 Intangibleassets 45,58-59

FRD110 Cashflowstatements 40

FRD112C Definedbenefitsuperannuationobligations 64-65

FRD114A FinancialInstruments–generalGovernmententitiesand publicnon-financialcorporations 46

FRD119 Contributionsbyowners 61

FRD120F Accountingandreportingpronouncementsapplicabletothe 2012/13reportingperiod 41

FRD121 Infrastructureassets 43

LegislationFreedom of Information Act 1982 34

Building Act1983 35

Protected Disclosures Act2012 33-34

Victorian Industry Participation Policy Act2003 35

Legislation Requirement Page reference

aPPEndiX OnE


Aquaculture Thecultureofaquaticorganisms(suchasfish,crustaceanandaquaticplants)under controlled conditions

Biodiversity Thenumberandvarietyoforganismsfoundwithinaspecifiedgeographicregion

Biosolids Organicsolidsderivedfromthetreatmentofsewage,stabilisedtothepointofbeingready foritsintendedsafereuse(e.g.asasoilconditioner)

Bulkentitlement Therightandconditionstowaterheldbywatercorporationsandotherorganisationsas defined in the Water Act1989

Catchment Anareaoflandonwhichwatermaybecaughtandcollectedintoastream,reservoiror aquifer

Effluent Anoutflowstreamfromasewagetreatmentsystem

EnvironmentProtectionAuthority AVictorianGovernmentstatutoryauthoritywhosepurposeistoprotect,careforand improve the environment

EssentialServicesCommission Victoria’sindependenteconomicregulatorofprescribedessentialutilityservicessuppliedby theelectricity,gas,water,ports,grainhandlingandrailfreightindustries

Greenhousegas Anyatmosphericgasesthatcontributetothegreenhouseeffect

Groundwater Waterbeneaththeearth’ssurfaceinanaquiferorwatertable

HACCP HazardAnalysisandCriticalControlPoints–ariskmanagementframeworkusedtoprotect thequalityofwater

Kilolitre(kL) Onethousand(1,000)litres

Majorcustomer Acustomerwhousesgreaterthan40megalitresofwaterperyear

Megalitre(ML) Onemillion(1,000,000)litres

OH&S OccupationalHealthandSafety–theprotectionofthehealth,safetyandwellbeingof employees,contractorsandvisitors

PermanentWaterSavingMeasures Measuresaimedatencouraginghouseholdsnotaffectedbyhigherlevelwaterrestrictionsto encourage ongoing water conservation and best-practice water use

Rawwater Waterharvestedfromthesurfaceorbelowgroundpriortoanytreatmentprocess

Recycledwater Waterproducedfromawaterreclamationplantorindustryprocess,treatedtoastandard appropriate for reuse

Reticulation Anetworkofpipesfordistributingwatertoareasofconsumption,suchasresidentialdistricts and individual households

RoofWaterHarvesting Theprocessofcapturingrainwaterfromroofsinnewresidentialsubdivisionsand transportingittoanexistingrawwaterstoragetobetreatedbeforeenteringthedrinking watersupply

Sewage Anyhumanexcretaordomesticwaterbornewaste,whetheruntreatedorpartiallytreated, but does not include trade waste

Seweragesystem Thenetworkofpipes,sewers,pumpstations,treatmentplantsandreusefacilityordischarge systemusedtoconveyofsewageortradewaste

Stakeholder Anindividualorgroupwithaninterestinanorganisation’soperations,suchasemployees, customers,governmentbodiesorthelocalcommunity

Stormwater Rainfallrun-off

Sustainability Thebalanceofgovernance,economic,environmentalandsocialfactorsinthedeliveryof business operations

glOSSaRYOF TERmS

80

Tradewaste Waterbornewasteotherthansewage(e.g.industrialorcommercialliquidwastes)suitable fordischargeintotheseweragesystem

Unplannedinterruption Anunforeseeninterruptiontoawatersupplysystem

WaterPlan Awatercorporation’sfive-yearorganisationalplansubmittedtotheEssentialServices Commission,outliningproposalstoensurehighqualitywaterandsewerageservicesfor customers, and the balance between the expenditure needed and water, sewerage and trade waste charges

Waterreclamationplant Atreatmentfacilityfortreatingsewageortradewastesuitableforsafereuseordischargeto the environment

Waterrestriction Arestrictiontoregulatetheuseofwaterfromthewatersupplysysteminperiodsofwater shortage

WaterSupplyDemandStrategy A50-yearplantoprovidesustainablewatersuppliesforthecommunityintothefuture (WSDS)

Watertreatmentplant Atreatmentfacilitythatremovesundesirablecharacteristicsfromthewater,makingit“fitfor purpose”(suchassafedrinkingwater)

glOSSaRY OF TERmS


A

Achievementsataglance 5-6

Annualconsumptiontables 16-17

Aquaculture 23

Auditor-General’sReport 69-70,75-76

Availabilityofinformation 34-35

B

Biosolids 23

Boardcomposition,meetings,committees 29-32

BoardDirectors 29-30

Boardattendanceattendance 31

Building Act 35

Bulkentitlements 24-27

C

Capitalworksexpenditure 8

Casestudy–Brinefacility 9

Casestudy–Health&safetyaward 9

Communityengagement 18

Communityserviceobligations 14

Consultancies 35

CorporateGovernance 29-32

Culturalheritage 19

Customerassistance 15

CustomerEngagementCommittee 18

Customernumbers 7

Customersatisfactionsurvey 4,6

D Disclosureindex 77-78

E

Employeerecruitmentandstatistics 20

Employeetraining 20,21

Ethicalstandards 31

ExecutiveTeam 33

F

Financialresultssummary 10

Financialstatements 36-70

Freedomofinformation 34

Futurechallenges 13

G

Glossaryofterms 79-80

Greenhousegasemissions 23

H

Highlights 9

L

Leadershipprogram 20

M

Majorchangesaffectingperformance 10

Majorcustomers 17-18

Map 2

Meritandequity 20

MessagefromChairmanandManagingDirector 4

Mission,values,strategicobjectives 3

N

NationalCompetitionPolicy 35

O

OccupationalHealthandSafety 21

Officewaterconsumption 17

Organisationalstructure 33

P

PerformanceReport 71-76

PermanentWaterSavingMeasures 18

Profile 7

Protecteddisclosures 31-34

R

Recycledwater 22

RegionalCatchmentStrategy 22

Riskmanagementattestation 13

RoofWaterHarvesting 16

S

Sewerageservices 18

Sustainablewateruse 17

V

VictorianBiodiversityStrategy 22

VictorianIndustryParticipationPolicy 35

VictorianRiverHealthStrategy 22

W

Waterconservationanddemandmanagement 15,18

Watersources 7

Y Yearinreview 7-8

indEX

82


84

PO Box 1158Warrnambool Vic 3280Tel 1300 926 666Fax 03 5565 6050Email [email protected]

CuSTOMER SERVICE CENTRES

Hamilton: 66 Gray Street

Portland: 15 Townsend Street

Warrnambool: 25 Gateway Road

www.wannonwater.com.au

annualREPORT 2012/13

Documents