LUNA PARK RESERVE TRUST annual report 2006/07
LUNA PARK RESERVE TRUST annual report 2006/07
LUNA PARK RESERVE TRUST annual report 2006/07
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<strong>LUNA</strong> <strong>PARK</strong> <strong>RESERVE</strong> <strong>TRUST</strong><br />
<strong>annual</strong> <strong>report</strong> <strong>2006</strong>/<strong>07</strong>
Letter to the Minister<br />
the hon. Frank Sartor MP<br />
Minister for Planning<br />
Level 34, governor Macquarie tower<br />
1 Farrer Place<br />
SYDneY nSW 2000<br />
Dear Minister<br />
i have pleasure in submitting Luna Park<br />
reserve trust’s <strong>annual</strong> <strong>report</strong> for the year<br />
ended 30 June 20<strong>07</strong>.<br />
the <strong>report</strong> has been prepared in<br />
accordance with the <strong>annual</strong> <strong>report</strong>s<br />
(Statutory Bodies) act 1984, the Public<br />
Finance audit act 1983 and the<br />
regulations under those acts.<br />
Yours sincerely<br />
Jon Isaacs<br />
chairman<br />
Sydney harbour Foreshore authority<br />
Contents<br />
Letter to the Minister inside front cover<br />
Statement by the chairman and chief executive officer 2<br />
Luna Park reserve trust 3<br />
corporate governance 7<br />
Financial Statements 8<br />
Statement by the Members of the trust 9<br />
independent audit <strong>report</strong> 10<br />
appendix 23<br />
index and contact details inside back cover
Statement by the chairman and chief executive officer<br />
Luna Park reserve trust has a unique charter – to preserve Luna Park as a State<br />
heritage asset funded by the operation of a commercially viable business.<br />
While this business is often challenged by competing local interests, it is the trust’s<br />
responsibility to ensure that the heritage fabric of this Sydney icon is maintained and<br />
that State-wide interests prevail.<br />
to this end, the trust is supported by the government and people of new South Wales<br />
in its quest to ensure that the park’s function as a 1930s amusement ground will be<br />
sustainable into the future.<br />
on behalf of the Luna Park reserve trust, we thank all those who have assisted in this<br />
endeavour, including the staff and Board of Sydney harbour Foreshore authority as well<br />
as Luna Park Sydney Pty Ltd and Metro edgley Pty Ltd.<br />
Jon Isaacs<br />
chairman<br />
Sydney harbour Foreshore authority<br />
Dr Robert Lang<br />
chief executive officer<br />
Sydney harbour Foreshore authority<br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong><br />
2
3<br />
Luna Park Reserve Trust<br />
Luna Park reserve trust was established under the Crown Lands Act 1989 when the<br />
Luna Park Site act commenced in 1990. a seven member trust Board was appointed at<br />
that time to manage the trust’s affairs. the Board continued to have that responsibility<br />
until May 1995 when an administrator was appointed.<br />
in February 2001, amendment no.4 of<br />
State environment Planning Policy no.56<br />
gazetted Luna Park development to be<br />
of State significance, and transferred<br />
development consent responsibility for<br />
Luna Park from north Sydney council<br />
to the nSW Minister for Planning.<br />
Subsequently, the Minister for Land<br />
and Water conservation appointed<br />
Sydney harbour Foreshore authority<br />
as a corporation to manage the affairs<br />
of Luna Park reserve trust.<br />
Sydney harbour Foreshore authority’s<br />
role involves undertaking responsibility<br />
for the care and control and management<br />
of the 3.13 hectares of Milsons Point that<br />
make up the Luna Park reserve. Luna<br />
Park reserve trust implements the Luna<br />
Park Plan of Management and administers<br />
the heritage and infrastructure Fund.<br />
the Minister for Planning is the consent<br />
authority for any development at Luna<br />
Park, which is listed as a Schedule 1<br />
site (State significance) under State<br />
Environmental Planning Policy – Major<br />
Projects 2005.<br />
in September 20<strong>07</strong>, the Minister also<br />
accepted administrative responsibility for<br />
the Luna Park Site Act 1990 and the parts<br />
of the Crown Lands Act 1989 that relate<br />
to the Luna Park reserve. as such he has<br />
Ministerial responsibility for Luna Park<br />
reserve trust, any land dealings at Luna<br />
Park and its general administration.<br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong><br />
Luna Park Sydney Pty Ltd has complete<br />
operational responsibility for the day-today<br />
running of the park.<br />
Heritage and Infrastructure Fund<br />
Luna Park reserve trust administers the<br />
heritage and infrastructure Fund, which<br />
is allocated to conserve and improve the<br />
park’s heritage and infrastructure features.<br />
the fund receives 3 per cent of the gross<br />
rental paid by Luna Park Sydney to Luna<br />
Park reserve trust.<br />
Luna Park Sydney Pty Ltd prepares<br />
<strong>annual</strong> heritage and infrastructure Fund<br />
budgets for approval by Luna Park<br />
reserve trust.<br />
items listed under the heritage and<br />
infrastructure Fund include coney island,<br />
crystal Palace, Luna Park Face and<br />
towers, Wild Mouse, rotor, and the cliff<br />
face, boardwalk, seawall and walkway.<br />
Preserving cliff top fig trees<br />
Sydney harbour Foreshore authority has<br />
established a heritage and conservation<br />
register under the heritage act. the fig<br />
trees on glen Street and Milsons Point<br />
are listed on this register, together with<br />
Luna Park reserve and the cliff face<br />
on olympic Drive.<br />
the nSW government has also taken<br />
action to ensure protection of the cliff<br />
top fig trees through conditions of<br />
development consent.<br />
Noise management<br />
after its re-opening in april 2004, a<br />
number of complaints were made about<br />
noise levels of rides at Luna Park.<br />
Luna Park Sydney subsequently<br />
conducted noise mitigation measures as<br />
part of its acoustic Plan of Management.<br />
these measures resulted in significant<br />
reductions in noise levels on the ranger<br />
ride, as well as on public address systems<br />
on the tango and Spider rides.<br />
Luna Park Sydney continues to comply<br />
with the conditions of development onsent<br />
and commissions an independent <strong>annual</strong><br />
noise audit review, as required by Luna<br />
Park’s acoustic Plan of Management.<br />
the acoustic <strong>report</strong> is submitted each<br />
year to the Department of Planning and<br />
north Sydney council.<br />
in october 2005 the government<br />
introduced the Luna Park Site Amendment<br />
(Noise Control) Act 2005. this legislation<br />
prevents individuals from taking criminal or<br />
civil proceedings or noise abatement action<br />
against Luna Park’s operators as long as<br />
specified maximum permissible noise levels<br />
are not exceeded.
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong> 4
New public park for the cliff top<br />
in november <strong>2006</strong>, Luna Park Sydney<br />
agreed to surrender its lease of cliff top<br />
Lot 10 to Luna Park reserve trust. Mrs<br />
Penelope Seidler will construct a public<br />
park on the cliff top dedicated to the<br />
memory of her late husband, architect<br />
harry Seidler.<br />
the Minister for Planning has approved a<br />
new plan of subdivision for the cliff top<br />
and the trust and Luna Park Sydney have<br />
agreed to covenants which ensure the site<br />
will be a public park.<br />
Luna Park Sydney will maintain the park<br />
as well as landscaping and maintaining a<br />
further 1,640 square metres of open<br />
space on the cliff top.<br />
5<br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong><br />
Luna Park Reserve<br />
Luna Park reserve covers 3.13 hectares of crown land at Milsons Point including:<br />
• the boardwalk and foreshore to the west, which provides public access along the<br />
harbour foreshore<br />
• the entertainment precinct between the boardwalk and foreshore and<br />
the base of the cliff where the fun park is located<br />
• the cliff top, which adjoins Glen Street and Northcliff Street to the east,<br />
but is physically and visually isolated from the remainder of the site.<br />
the reserve is vested in the crown by the Luna Park Site Act 1990 and dedicated<br />
under the Crown Lands Act 1989 for the purpose of public recreation, amusement<br />
and entertainment.<br />
the 40-year lease guarantees revenue to the trust from the amusement park<br />
operators. this includes a proportion of gross revenue to be paid into a fund to<br />
ensure the ongoing maintenance of heritage items and infrastructure.<br />
the cliff top sites above Luna Park are leased for 99 years.
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong> 6
7<br />
Corporate Governance<br />
Sydney harbour Foreshore authority,<br />
which manages Luna Park reserve trust,<br />
has corporate status under Section 10 of<br />
the Sydney Harbour Foreshore Authority<br />
Act 1998.<br />
the Foreshore authority’s Board<br />
comprises the authority’s chief executive<br />
officer, the Director-general of the<br />
Department of Planning and a maximum<br />
of five people appointed by the Minister,<br />
one of whom is appointed as the<br />
chairperson.<br />
the Foreshore authority’s Board acts<br />
as the Luna Park reserve trust Board.<br />
Board members at 30 June 20<strong>07</strong> were:<br />
• Jon Isaacs (Chairman)<br />
• Robert Lang (CEO, Sydney Harbour<br />
Foreshore authority)<br />
• Chris Johnson (on behalf of the<br />
Director-general, Department of<br />
Planning)<br />
• Bonnie Boezeman AO<br />
• Michael Collins<br />
• Gabrielle Trainor<br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong><br />
Financial <strong>report</strong>ing and<br />
insurance controls<br />
the Public Finance and Audit Act 1983<br />
requires the establishment of efficient<br />
systems and sound internal controls of<br />
good business practice. this ensures<br />
business objectives are effectively<br />
pursued and reduces the risk of the<br />
objectives not being achieved.<br />
to date, audit and risk issues have<br />
been incorporated within Sydney<br />
harbour Foreshore authority’s audit<br />
and risk agenda.<br />
Board member attendance at Luna Park Reserve Trust meetings in <strong>2006</strong>/<strong>07</strong><br />
Board members Possible Attended<br />
Jon isaacs 7 6<br />
robert Lang 7 7<br />
Bonnie Boezeman 7 6<br />
Michael collins 7 7<br />
chris Johnson 7 6<br />
gabrielle trainor 7 7
Financial Statements<br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong><br />
8
9<br />
Statement by the Manager of the trust<br />
For the year ended 30 June 20<strong>07</strong><br />
Pursuant to Section 41c (1B) of the Public Finance and Audit Act 1983 the trust states that:<br />
1. the accompanying financial statements exhibit a true and fair view of the financial position of the Luna Park reserve trust as at<br />
30 June 20<strong>07</strong> and transactions for the year ended on that date.<br />
2. the statements have been prepared in accordance with the provisions of the Public Finance and Audit Act 1983, the Public Finance<br />
and Audit Regulation 2005 and the treasurer’s Directions.<br />
Further, we are not aware of any circumstances that would render any particulars included in the financial statements to be misleading<br />
or inaccurate.<br />
Jon Isaacs Dr Robert Lang<br />
chairman Director<br />
Sydney harbour Foreshore authority Sydney harbour Foreshore authority<br />
(Manager of the trust) (Manager of the trust)<br />
16 october 20<strong>07</strong><br />
Sydney<br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong>
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong> 10
11<br />
LUna Park reSerVe trUSt<br />
Start oF audited FinanCiaL StateMentS<br />
incoMe StateMent<br />
For the Year enDeD 30 JUne 20<strong>07</strong><br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong><br />
20<strong>07</strong> <strong>2006</strong><br />
Notes $’000 $’000<br />
Revenue from continuing operations 3 1,491 1,141<br />
Expenses<br />
Management fee (67) (64)<br />
auditor’s remuneration–audit of financial <strong>report</strong> (13) (13)<br />
Depreciation 8(b) (579) (449)<br />
heritage costs amortisation 7 (1,188) (650)<br />
Professional services (416) (196)<br />
Legal fees (126) (57)<br />
Maintenance (45) (92)<br />
other (8) (42)<br />
Total expenses (2,442) (1,563)<br />
Deficit for the year (951) (422)<br />
The above income statement is to be read in conjunction with the attached notes.
LUna Park reSerVe trUSt<br />
BaLance Sheet<br />
aS at 30 JUne 20<strong>07</strong><br />
20<strong>07</strong> <strong>2006</strong><br />
Notes $’000 $’000<br />
Current assets<br />
cash and cash equivalents 4 547 684<br />
receivables 7 2,860 4,249<br />
Total current assets 3,4<strong>07</strong> 4,933<br />
Non-current assets<br />
Property, plant and equipment 8 26,280 25,360<br />
Total non-current assets 26,280 25,360<br />
Total assets 29,687 30,293<br />
Current liabilities<br />
Payables 9 2,927 4,067<br />
Total current liabilities 2,927 4,067<br />
Total liabilities 2,927 4,067<br />
Net assets 26,760 26,226<br />
Equity<br />
asset revaluation reserve 10 15,906 14,421<br />
accumulated funds 11 10,854 11,805<br />
Total equity 26,760 26,226<br />
The above balance sheet is to be read in conjunction with the attached notes.<br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong><br />
12
13<br />
LUna Park reSerVe trUSt<br />
StateMent oF recogniSeD incoMe anD exPenSe<br />
For the Year enDeD 30 JUne 20<strong>07</strong><br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong><br />
20<strong>07</strong> <strong>2006</strong><br />
Notes $’000 $’000<br />
net increase in property, plant and equipment<br />
asset revaluation reserve 10 1,485 186<br />
Total revenue and expense recognised directly in equity 1,485 186<br />
Deficit for the year (951) (422)<br />
Total revenue and expense recognised for the period 534 (236)<br />
The above statement of recognised income and expense is to be read in conjunction with the attached notes.
LUna Park reSerVe trUSt<br />
caSh FLoW StateMent<br />
For the Year enDeD 30 JUne 20<strong>07</strong><br />
20<strong>07</strong> <strong>2006</strong><br />
Notes $’000 $’000<br />
Cash flows from operating activities<br />
receipts from customers 1,780 1,003<br />
Payments to suppliers<br />
Payments to Luna Park Sydney–heritage<br />
(771) (521)<br />
and infrastructure expenditure claw back (1,188) (650)<br />
interest received 42 42<br />
Net cash used in operating activities 6 (137) (126)<br />
Net increase/(decrease) in cash held (137) (126)<br />
Cash at the start of the financial year 684 810<br />
Cash at the end of the financial year 4 547 684<br />
The above cash flow statement is to be read in conjunction with the attached notes.<br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong><br />
14
15<br />
LUna Park reSerVe trUSt<br />
noteS to the FinanciaL StateMentS<br />
For the Year enDeD 30 JUne 20<strong>07</strong><br />
1. REPORTING ENTITY<br />
Luna Park reserve trust was established on 12 october 1990, under the Luna Park Site Act 1990. the purpose of the trust is to<br />
control the Luna Park site, which has been dedicated to an area of public amusement, recreation and entertainment. the trust is<br />
under control of the Minister for Planning.<br />
on 9 February 2001, the Minister for Land and Water conservation appointed Sydney harbour Foreshore authority (Foreshore<br />
authority) to manage the affairs of Luna Park reserve trust. the Foreshore authority does not have significant control over the<br />
activities of the trust therefore financial performance of the trust is not consolidated into the Foreshore authority’s financial<br />
statements.<br />
2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES<br />
(a) Basis of preparation<br />
the financial <strong>report</strong> is a general-purpose financial <strong>report</strong> and is prepared on an accrual basis in accordance with the australian<br />
accounting Standards which include australian equivalents to international Financial <strong>report</strong>ing Standards (aeiFrS), other<br />
authoritative pronouncements of the australian accounting Standards Board (aaSB), the interpretation, the requirements of the<br />
Public Finance and Audit Act 1983 and Financial <strong>report</strong>ing Directions issued by the treasurer.<br />
Set out below is a summary of the significant accounting policies adopted by the trust.<br />
the financial <strong>report</strong> is presented in australian dollars rounded to the nearest thousand.<br />
(b) Statement of compliance<br />
the financial <strong>report</strong> complies with the australian accounting Standards. a statement of compliance with international Financial<br />
<strong>report</strong>ing Standards (iFrS) cannot be made due to the trust applying the not-for-profit sector requirements contained in aeiFrS.<br />
(c) Significant accounting judgements, estimates and assumptions<br />
(i) Significant accounting judgement<br />
In the application of AASB, management is required to make judgments, estimates and assumptions about carrying values of<br />
assets and liabilities that are not readily apparent from other sources. the estimates and associated assumptions are based<br />
on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of<br />
which form the basis of making the judgments. Actual results may differ from these estimates. Key judgements are disclosed<br />
as part of accounting notes.<br />
(ii) Significant accounting estimates and assumptions<br />
the estimates and underlying assumptions are reviewed on an ongoing basis. revisions to accounting estimates are<br />
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision<br />
and future periods if the revision affects both current and future periods. Judgments made by management in the application<br />
of AASB that have significant effects on the financial statements and estimates with a significant risk of material adjustments<br />
in the next year are disclosed, where applicable, in the relevant notes to the financial statements.<br />
(d) Financial risk management<br />
the trust uses financial instruments such as cash and nSW treasury corporation hour-glass Facilities.<br />
the Foreshore authority has a policy not to undertake trading in financial instruments.<br />
the trust’s activities expose it to a variety of financial risks: credit risk, liquidity risk and interest rate risk.<br />
(i) credit risk<br />
the trust has no significant concentrations on credit risk. the trust has policies in place to ensure that trades are made to<br />
third parties with an appropriate credit history.<br />
(ii) Liquidity risk<br />
the trust’s liquidity risk management implies maintaining sufficient cash. the trust has no interest bearing liabilities which are<br />
likely to require significant cash flow in the foreseeable future.<br />
(iii) interest rate risk<br />
as the trust has no significant interest bearing assets, the trust’s income and operating cash flows are not materially<br />
exposed to changes in market interest rates.<br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong>
LUna Park reSerVe trUSt<br />
noteS to the FinanciaL StateMentS<br />
For the Year enDeD 30 JUne 20<strong>07</strong><br />
(e) Income Revenue recognition<br />
revenue is recognised when the trust has control of the assets that result from income generating transactions or the right to<br />
receive control, it is probable that the economic benefits will flow to the trust and the amount of revenue can be measured reliably.<br />
(f) Income tax<br />
the trust is exempt from income tax under section 50-25 of the Income Tax Assessment Act 1997.<br />
(g) Acquisition of assets<br />
the cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the trust. cost is the<br />
amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time of its<br />
acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with<br />
the requirements of other australian accounting Standards.<br />
assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value at the date of acquisition.<br />
Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length<br />
transaction.<br />
Where payment for an asset is deferred beyond normal credit terms, its cost is the cash price equivalent, i.e. deferred payment<br />
amount is effectively discounted at an asset-specific rate.<br />
(h) Revaluation of physical non-current assets, property, plant and equipment<br />
Physical non-current assets are valued in accordance with the Valuation of Physical Non-Current Assets at Fair Value Policy and<br />
Guidelines Paper (tPP 05-3). this policy adopts fair value in accordance with aaSB 116 Property, Plant and Equipment.<br />
Property, plant and equipment is measured on an existing use basis, where there are no feasible alternative uses in the existing<br />
natural, legal, financial and socio-political environment. however, in the limited circumstances where there are feasible alternative<br />
uses, assets are valued at their highest and best use.<br />
Fair value of property, plant and equipment is determined based on the best available market evidence, including current market<br />
selling prices for the same or similar assets. Where there is no available market evidence, the asset’s fair value is measured at its<br />
market buying price, the best indicator of which is depreciated replacement cost.<br />
the trust revalues each class of property, plant and equipment at least every five years or with sufficient regularity to ensure that<br />
the carrying amount of each asset in the class does not differ materially from its fair value at <strong>report</strong>ing date. the last revaluation<br />
was completed on 30 June 20<strong>07</strong> and was based on an independent assessment.<br />
aaSB 116.35(b): For other assets, any balances of accumulated depreciation at the revaluation date in respect of those assets are<br />
credited to the asset accounts to which they relate. the net asset accounts are then increased or decreased by the revaluation<br />
increments or decrements.<br />
aaSB 116.aus39.1: revaluation increments are credited directly to the asset revaluation reserve, except that, to the extent that an<br />
increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in the surplus/<br />
deficit, the increment is recognised immediately as revenue in the surplus/deficit.<br />
aaSB 116.aus40.1: revaluation decrements are recognised immediately as expenses in the surplus/deficit, except that, to the<br />
extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly<br />
to the asset revaluation reserve.<br />
aaSB 116.aus40.2: as a not-for-profit entity, revaluation increments and decrements are offset against one another within a class<br />
of non-current assets, but not otherwise.<br />
tPP 05-3, aaSB 116.41: Where an asset that has previously been revalued is disposed of, any balance remaining in the asset<br />
revaluation reserve in respect of that asset is transferred to accumulated funds.<br />
(i) Impairment of property, plant and equipment<br />
as a not-for-profit entity with no cash generating units, the trust is effectively exempted from aaSB 136 Impairment of Assets and<br />
impairment testing. this is because aaSB 136 modifies the recoverable amount test to the higher of fair value less costs to sell and<br />
depreciated replacement cost. this means that, for an asset already measured at fair value, impairment can only arise if selling<br />
costs are material. Selling costs are regarded as immaterial.<br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong><br />
16
17<br />
LUna Park reSerVe trUSt<br />
noteS to the FinanciaL StateMentS<br />
For the Year enDeD 30 JUne 20<strong>07</strong><br />
(j) Depreciation<br />
Depreciation is provided for on a straight-line basis for all depreciable assets so as to write off the depreciable amount of each<br />
asset as it is consumed over its useful life to the trust. estimates of remaining useful lives are made on a regular basis for all<br />
assets, with <strong>annual</strong> reassessments for major items.<br />
Land is not a depreciable asset.<br />
Rate<br />
Buildings 2.7-6%<br />
infrastructure 2.9-5%<br />
(k) Major inspection costs<br />
When each major inspection is performed, the labour cost of performing inspections for faults is recognised in the carrying amount<br />
of an asset as a replacement of a part, if the recognition criteria are satisfied.<br />
(l) Restoration costs<br />
the estimated cost of dismantling and removing an asset and restoring the site is included in the cost of an asset, to the extent it is<br />
recognised as a liability.<br />
(m) Maintenance<br />
Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement of a<br />
part or component of an asset, in which case the costs are capitalised and depreciated.<br />
(n) Receivables<br />
receivables are recognised initially at fair value, usually based on the transaction cost or face value.<br />
Short-term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting is<br />
immaterial.<br />
(o) Personnel services expense<br />
the trust does not employ staff but utilises the personnel services of the Sydney harbour Foreshore authority. the personnel<br />
services expenses are provided and charged by the Foreshore authority according to services performed. the trust has no<br />
employee obligations under this arrangement.<br />
(p) Financial instruments<br />
Financial instruments give rise to positions that are a financial asset of the trust and a financial liability (or equity instrument) of the<br />
other party. For the trust these include cash at bank, receivables and payables.<br />
in accordance with australian accounting Standard aaSB139 Financial Instruments, recognition and measurement disclosure of<br />
the carrying amounts for each of the aaSB139 categories of financial instruments are disclosed in note 14. the specific<br />
accounting policy for each class of financial instrument is stated below.<br />
classes of instruments recorded and their terms and conditions measured in accordance with aaSB139 are as follows:<br />
(i) cash<br />
cash is carried at nominal values reconcilable to monies on hand and independent bank statements.<br />
the trust has investments with the nSW treasury corporation’s hour-glass facilities. the trust’s investment is represented by<br />
a number of units of a management investment pool with each particular pool having different horizons and being comprised<br />
of a mix of asset classes appropriate to that investment horizon. nSW treasury corporation appoints and monitors the<br />
application of appropriate investment guidelines.<br />
this investment is generally able to be redeemed daily by 12 pm. the value of the investment held can increase as well as<br />
decrease depending on market conditions. the value of the above investment represents the trust’s share of the value of the<br />
underlying assets of the facility, and those assets as stated at net value. the weighted average rate of return on these<br />
investments during the year was 6.23% (<strong>2006</strong>: 5.56%).<br />
(ii) receivables<br />
receivables are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent<br />
measurement is at amortised cost using the effective interest method, less an allowance for any impairment of receivables.<br />
Short term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting<br />
is immaterial. An allowance for impairment of receivables is established when there is objective evidence that the entity will not<br />
be able to collect all amounts due. the amount of the allowance is the difference between the asset’s carrying amount and the<br />
present value of estimated future cash flows, discounted at the effective interest rate. Bad debts are written off as incurred.<br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong>
LUna Park reSerVe trUSt<br />
noteS to the FinanciaL StateMentS<br />
For the Year enDeD 30 JUne 20<strong>07</strong><br />
Terms and Conditions – accounts are generally issued on 30-day terms.<br />
(iii) trade and other payables<br />
Payables represent liabilities for goods and services provided to the trust. Payables are recognised initially at fair value,<br />
usually based on the transaction cost or face value. Short-term payables with no stated interest rate are measured at the<br />
original invoice amount where the effect of discounting is immaterial. Payables are recognised for amounts to be paid in the<br />
future for goods and services received, whether or not billed to the trust.<br />
Terms and Conditions – trade liabilities are settled within any terms specified. if no terms are specified, payment is made by<br />
the end of the month following the month in which the invoice is received.<br />
(q) New Australian Accounting Standards issues<br />
certain new accounting standards and interpretations have been published that are not mandatory for 30 June 20<strong>07</strong> <strong>report</strong>ing<br />
period. the trust did not early adopt any of these accounting Standards and interpretations that are not yet effective:<br />
• AASB 7 and AASB 2005 Financial Instruments: Disclosures (1 January 20<strong>07</strong>)<br />
• AASB Interpretation 10 Interim Financial Reporting and Impairment (1 november <strong>2006</strong>)<br />
• AASB 101 Presentation of Financial Statements (1 January 20<strong>07</strong>)<br />
• AASB 20<strong>07</strong>-04 Amendments to Australian Accounting Standards arising from ED 151 and other Amendments (1 July 20<strong>07</strong>)<br />
• AASB 8 and AASB 20<strong>07</strong>-3 Operating Segments (1 January 2009)<br />
• AASB 123 Borrowing Costs (1 January 2009)<br />
• AASB 2 Share-Based Payment: AASB 20<strong>07</strong>-1 (February 20<strong>07</strong>) that is applicable to <strong>annual</strong> <strong>report</strong>ing period beginning on or<br />
after 1 March 20<strong>07</strong>. the amendments to aaSB 2 (and interpretation 11) apply to 30 June 2008 and to 31 December 2009<br />
balancing companies<br />
• Interpretation 11 Group and Treasury Share Transactions (1 March 20<strong>07</strong>)<br />
• Interpretation 129 Service Concession Arrangements: Disclosure (1 January 2008).<br />
it is considered that the impact of these new standards and interpretations in future periods will have no material impact on the<br />
financial statements of the trust.<br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong><br />
18
19<br />
LUna Park reSerVe trUSt<br />
noteS to the FinanciaL StateMentS<br />
For the Year enDeD 30 JUne 20<strong>07</strong><br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong><br />
20<strong>07</strong> <strong>2006</strong><br />
$’000 $’000<br />
3. Revenue from continuing operations<br />
Property rental 572 481<br />
heritage and infrastructure revenue 863 618<br />
asset revaluation increment 14 –<br />
interest received 42 42<br />
1,491 1,141<br />
4. Cash and cash equivalent assets<br />
For the purposes of the cash Flow Statement, cash includes cash at bank<br />
and investments in nSW treasury corporation – hour glass facilities<br />
cash at bank 87 252<br />
nSW treasury corporation – hour glass short term cash facility 460 432<br />
5. Restricted assets<br />
the Luna Park heritage infrastructure Fund of $57,261, included in cash,<br />
is restricted in application under the trust. Funds can only be spent on the<br />
maintenance of heritage and infrastructure items as defined in the trust Deed.<br />
547 684<br />
6. Reconciliation of operating surplus/(deficit) for the<br />
year to net cash flows used in operating activities<br />
Deficit for the year<br />
non cash flows in operating deficit<br />
(951) (422)<br />
Depreciation 579 449<br />
Disposal – Plant and equipment – 14<br />
asset revaluation increment<br />
change in operating assets and liabilities<br />
(14) –<br />
(increase)/decrease in receivables 201 (225)<br />
(Decrease)/increase in payables 48 58<br />
net cash flows used in operating activities (137) (126)<br />
7. Receivables<br />
rent receivable – Luna Park Sydney Pty Ltd 110 311<br />
heritage and infrastructure works 2,750 3,938<br />
2,860 4,249<br />
Luna Park Sydney Pty Ltd (formerly known as Metro edgley Pty Ltd) incurred expenditure for the heritage and infrastructure works<br />
during 2003/04. it was part of the refurbishment of Luna Park prior to the opening of the Park and the new lease which<br />
commenced operations in April 2004. The works were certified by the Incoll Group, who was the private certifier for the project.<br />
the total certified amount of $5,738,139 was disclosed to the trust in December 2004.<br />
the lease agreement has a clawback provision to reimburse Luna Park Sydney Pty Ltd (LPS) for the heritage and infrastructure<br />
works. the cost of the works is recognised in the books of the trust as a receivable and a payable. they will be progressively<br />
reduced as the trust makes its approved payments to LPS.<br />
heritage and infrastructure works 3,938 4,588<br />
Less: payments made during the period (1,188) (650)<br />
closing balance 2,750 3,938
LUna Park reSerVe trUSt<br />
noteS to the FinanciaL StateMentS<br />
For the Year enDeD 30 JUne 20<strong>07</strong><br />
8. Property, plant and equipment<br />
(a) Amounts shown in the Balance Sheet are derived as follows:<br />
20<strong>07</strong> <strong>2006</strong><br />
$’000 $’000<br />
Land 10,895 10,350<br />
at fair value 10,895 10,350<br />
Buildings<br />
at gross value 8,215 7,550<br />
accumulated depreciation – –<br />
carrying amount 8,215 7,550<br />
Plant and equipment<br />
at gross value – 26<br />
Disposal – (14)<br />
accumulated depreciation – (12)<br />
carrying amount – –<br />
Infrastructure<br />
at gross value 7,170 7,460<br />
accumulated depreciation – –<br />
carrying amount 7,170 7,460<br />
Total property, plant and equipment 26,280 25,360<br />
the land, buildings and infrastructure were valued by rushton Valuers on 30 June 20<strong>07</strong> based on an independent assessment.<br />
as per aaSB 116 Property, Plant and Equipment paragraph aUS 39.1, the net revaluation increment was credited to the asset<br />
revaluation reserve, except for $14,000 credited to profit and loss. this offsets the amount recognised as a decrement (loss on<br />
disposal) in the income statement in 2005/06. in prior years, the painting on the wall (mural) was included in the category of<br />
‘plant and equipment’. in <strong>2006</strong>/<strong>07</strong>, the mural is included in the ‘buildings’ class.<br />
(b) Reconciliations<br />
reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the financial<br />
year are set out below.<br />
Land<br />
carrying amount at 1 July 10,350 9,000<br />
increase in asset revaluation 545 1,350<br />
carrying amount at 30 June 10,895 10,350<br />
Buildings<br />
carrying amount at 1 July 7,550 8,160<br />
Depreciation expense (224) (221)<br />
increase/(decrease) in asset revaluation 889 (389)<br />
carrying amount at 30 June 8,215 7,550<br />
Plant and equipment<br />
carrying amount at 1 July – 14<br />
Disposal – (14)<br />
carrying amount at 30 June – –<br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong><br />
20
21<br />
LUna Park reSerVe trUSt<br />
noteS to the FinanciaL StateMentS<br />
For the Year enDeD 30 JUne 20<strong>07</strong><br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong><br />
20<strong>07</strong> <strong>2006</strong><br />
$’000 $’000<br />
Infrastructure<br />
carrying amount at 1 July 7,460 8,463<br />
Depreciation expense (355) (228)<br />
increase/(decrease) in asset revaluation 65 (775)<br />
carrying amount at 30 June 7,170 7,460<br />
Total property, plant and equipment<br />
carrying amount at 1 July 25,360 25,637<br />
Depreciation expense (579) (449)<br />
Disposal – (14)<br />
increase in asset revaluation 1,499 186<br />
carrying amount at 30 June 26,280 25,360<br />
9. Payables<br />
trade creditors 76 24<br />
Security deposits 7 –<br />
gSt payable 13 9<br />
accrued expenses 81 96<br />
heritage and infrastructure works (refer note 7) 2,750 3,938<br />
2,927 4,067<br />
10. Asset revaluation reserve<br />
Balance at the beginning of financial year 14,421 14,235<br />
increase in asset revaluation reserve 1,485 186<br />
Balance at the end of financial year 15,906 14,421<br />
11. Accumulated funds<br />
Balance at the beginning of financial year 11,805 12,227<br />
Deficit for the year (951) (422)<br />
Balance at the end of financial year 10,854 11,805<br />
12. Capital and lease commitments<br />
the trust did not have any capital or lease commitments at balance date.<br />
13. Contingent assets/liabilities<br />
there are no known contingent assets/liabilities at balance date.
LUna Park reSerVe trUSt<br />
noteS to the FinanciaL StateMentS<br />
For the Year enDeD 30 JUne 20<strong>07</strong><br />
14. Financial instruments<br />
a) Interest rate risk<br />
interest rate risk, is the risk that the value of the financial instrument will fluctuate due to changes in market interest rates.<br />
the trust’s exposure to interest rate risks and the effective interest rates of financial assets and liabilities, both recognised and<br />
unrecognised, at the (consolidated) balance sheet date are as follows:<br />
Fixed interest rate maturing in:<br />
Financial instruments<br />
Floating<br />
interest rate<br />
1 year or less<br />
over<br />
1 to 5 years<br />
More than<br />
5 years<br />
non-interest<br />
bearing<br />
total carrying<br />
amount<br />
as per the<br />
balance sheet<br />
Weighted<br />
average<br />
effective<br />
interest rate<br />
20<strong>07</strong> <strong>2006</strong> 20<strong>07</strong> <strong>2006</strong> 20<strong>07</strong> <strong>2006</strong> 20<strong>07</strong> <strong>2006</strong> 20<strong>07</strong> <strong>2006</strong> 20<strong>07</strong> <strong>2006</strong> 20<strong>07</strong> <strong>2006</strong><br />
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 % %<br />
Financial assets<br />
cash and cash<br />
equivalents<br />
nSW treasury<br />
87 252 - - - - - - - - 87 252 6.05 5.43<br />
corporation – hour glass<br />
short term cash facility<br />
460 432 - - - - - - - - 460 432 6.23 5.56<br />
receivables - - - - - - - - 2,860 4,249 2,860 4,249 - -<br />
Total financial assets<br />
Financial liabilities<br />
547 684 - - - - - - 2,860 4,249 3,4<strong>07</strong> 4,933 - -<br />
Payables - - - - - - - - 2,927 4,067 2,927 4,067 - -<br />
Total financial liabilities - - - - - - - - 2,927 4,067 2,927 4,067 - -<br />
the weighted average interest rate risk is not applicable for non-interest bearing financial instruments.<br />
b) Credit risk<br />
credit risk is the risk of financial loss arising from another party to a contract/or financial position failing to discharge a financial<br />
obligation thereunder. the trust’s maximum exposure to credit risk is represented by the carrying amounts of the financial assets<br />
included in the consolidated Balance Sheet.<br />
20<strong>07</strong> <strong>2006</strong><br />
$’000 $’000<br />
Financial assets<br />
cash and cash equivalents 87 252<br />
nSW treasury corporation – hour glass short term cash facility 460 432<br />
receivables 2,860 4,249<br />
Total financial assets 3,4<strong>07</strong> 4,933<br />
c) Derivative financial instruments<br />
the trust holds no derivative financial instruments.<br />
15. Events after balance sheet date<br />
on 7 September 20<strong>07</strong>, administration of Luna Park Site Act 1990 and the Crown Lands Act 1989 (so far as it relates to the<br />
Luna Park reserve) was transferred to the Minister for Planning. this transfer is not envisaged to change the <strong>report</strong>ing relationship<br />
between the trust and the Foreshore authority, who will continue to manage affairs of the trust. activities of the trust will be<br />
governed by the crown Lands act and the Foreshore authority will not have any significant control over the trust so as to obtain<br />
benefits from its activities.<br />
end oF audited FinanCiaL StateMentS<br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong><br />
22
23<br />
Appendix<br />
Code of Conduct<br />
Sydney harbour Foreshore authority is<br />
committed to establishing a reputation<br />
for responsibility, integrity and fair dealing,<br />
with staff required to set a good example<br />
and conduct themselves in a way that<br />
demonstrates the highest ethical<br />
standards.<br />
a written code of conduct, updated in<br />
april 20<strong>07</strong>, outlines the standards that are<br />
expected of staff and provides guidelines<br />
on behaviour.<br />
Consultants<br />
there were no direct consultants<br />
appointed specifically to Luna Park<br />
reserve trust during <strong>2006</strong>/<strong>07</strong>.<br />
Disability Action Plan<br />
Metro edgley Pty Ltd, developer of the<br />
park, and Luna Park Sydney Pty Ltd,<br />
operator of the park, are responsible for<br />
disability compliance.<br />
Providing access and facilities for persons<br />
with a disability in accordance with Part<br />
D3 of the Building code of australia is<br />
required for all development consents.<br />
in addition, an access Plan was prepared<br />
for Luna Park by access australia<br />
consultants Pty Ltd in May 2002.<br />
Ethnic Affairs Priorities Statement<br />
Sydney harbour Foreshore authority’s<br />
ethnic affairs Priorities Statement (eaPS)<br />
applies to Luna Park reserve trust.<br />
it encapsulates a desire to implement<br />
government policy to ensure equity in<br />
all forms of employment and access.<br />
a copy of the eaPS can be obtained<br />
from the authority.<br />
Freedom of information<br />
there were no requests made to Sydney<br />
harbour Foreshore authority during the<br />
year for information relating to Luna Park<br />
reserve trust under the Freedom of<br />
Information Act 1989.<br />
Human resources<br />
Luna Park reserve trust has no staff,<br />
with project management undertaken<br />
by Sydney harbour Foreshore authority.<br />
the authority’s <strong>annual</strong> <strong>report</strong> includes<br />
information on staffing arrangements<br />
and compliance.<br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong><br />
Printing costs of <strong>annual</strong> <strong>report</strong><br />
this <strong>annual</strong> <strong>report</strong> was prepared by<br />
Sydney harbour Foreshore authority<br />
for Luna Park reserve trust, at a total<br />
cost of $1174.<br />
the <strong>report</strong> was written and designed<br />
in-house by the authority and is available<br />
at www.shfa.nsw.gov.au.<br />
Privacy management plan<br />
Sydney harbour Foreshore authority has<br />
developed a Privacy Management Plan in<br />
response to the Privacy and Personal<br />
Information Act 1998. the authority applies<br />
this plan where relevant, as appointed<br />
manager of Luna Park reserve trust.<br />
the Privacy and Personal Information<br />
Protection Act 1998 aims to protect<br />
the privacy of individuals from the<br />
inappropriate collection, storage, use<br />
and disclosure of personal information.<br />
the act is based on 12 information<br />
principles that establish standards for<br />
using personal information in an open<br />
and accountable manner. the information<br />
Protection Principles apply to all staff,<br />
consultants and contractors engaged<br />
by the authority. the complete Privacy<br />
Management Plan is available from<br />
the authority.
Index<br />
accounting policies 15<br />
acoustic Plan of Management 3<br />
acts – crown Lands 3<br />
– Luna Park Site 3<br />
<strong>annual</strong> <strong>report</strong> costs 23<br />
audit <strong>report</strong> 10<br />
Balance sheet 12<br />
Board – attendance at meetings 7<br />
– Members 7<br />
– Statement by members 9<br />
cash flow 14<br />
chairman – Statement by 2<br />
chief executive officer – Statement by 2<br />
cliff top park 5<br />
code of conduct 23<br />
consultants 23<br />
contents inside front cover<br />
corporate governance 7<br />
crown Lands act 3<br />
Development consent 3<br />
Disability action Plan 23<br />
ethnic affairs Priorities Statement 23<br />
Fig trees 3<br />
Financial statements 8<br />
Freedom of information 23<br />
heritage and infrastructure Fund 3<br />
human resources 23<br />
income statement 11<br />
Leases 5<br />
Luna Park reserve 5<br />
Luna Park reserve trust 3<br />
Luna Park Site act 1990 3<br />
Luna Park Sydney Pty Ltd 3<br />
Metro edgley 19<br />
Minister – Letter to inside front cover<br />
– responsibilities 3<br />
noise management 3<br />
Printing costs 23<br />
Privacy 23<br />
Seidler, harry 5<br />
LUna Park reSerVe trUSt annUaL rePort <strong>2006</strong>/<strong>07</strong><br />
24