AUDITOR-GENERAL’S REPORT FINANCIAL AUDITS Volume Nine 2009_part5 potx

Minister for Lands Wentworth Park Sporting Complex Trust This is trial version www.adultpdf.com 39 This is trial version www.adultpdf.com Wentworth Park Sporting Complex Trust AUDIT OPINION The audit of the Trust’s financial report for the year ended 30 June 2009 resulted in an unqualified Independent Auditor’s Report KEY ISSUES Unresolved Loan Repayment – Repeat Issue I have previously recommended that the Trust endeavour to reach agreement with Greyhound Racing NSW regarding the treatment of monies provided in 1985-87 by the former Racecourse Development Fund The Trust records a loan of $6.5 million payable to Greyhound Racing NSW provided in the period 1985-87 by the former Racecourse Development Fund (the construction of the main grandstand At that time, grant status was not attached loan was finally transferred to Greyhound Racing NSW following privatisation winding up of the Fund The money was Fund) to finalise to the loan The of the TAB and The Trust’s Board advised that it does not have the capacity to repay the loan and believes that, in respect of original arrangements, there is no obligation for repayment The Trust and Greyhound Racing NSW continue to discuss the status of the loan and the Trust believes the issue will be finalised in 2009-10 Licence termination In November 2008, after 75 years of racing at Wentworth Park, the NSW National Coursing Association terminated its licence with the Trust and ceased metropolitan racing operations The NSW Greyhound Breeders, Owners and Trainers Association is expected to conduct greyhound racing 104 times per year as sole licensee FINANCIAL INFORMATION Year ended 30 June Revenue Expenses Deficit Net assets (at 30 June) 2009 $’000 2008 $’000 674 2,853 2,179 39,468 468 1,850 1,382 39,863 The increase in expenditure was largely due to a $332,000 decrement on the revaluation of Trust buildings (not including the grandstand), an increase in repairs and maintenance costs of $199,000, and $66,000 in demolition costs incurred to remove an old grandstand This is trial version www.adultpdf.com Auditor-General’s Report to Parliament 2009 Volume Nine 41 Wentworth Park Sporting Complex Trust TRUST ACTIVITIES The Trust is established under the Crown Lands Act 1989 Its main function is the care, control and management of the Reserve (Wentworth Park Sporting Complex) It is under the control of the Minister for Lands The Trust is empowered to grant leases, subject to Ministerial approval, and licences for the use of the Wentworth Park Sporting Complex for prescribed purposes For further information on the Trust refer to www.wentworthparksport.com.au This is trial version www.adultpdf.com 42 _ Auditor-General’s Report to Parliament 2009 Volume Nine Minister for Planning Sydney Olympic Park Authority This is trial version www.adultpdf.com 43 This is trial version www.adultpdf.com Sydney Olympic Park Authority AUDIT OPINION The audits of the Authority and its controlled entities’ financial reports for the year ended 30 June 2009 resulted in unqualified Independent Auditor’s Reports Unless otherwise stated, the following commentary relates to the consolidated entity OTHER INFORMATION We identified opportunities for improvement to accounting and internal control procedures and have reported them to management Master Plan 2030 The Authority has adopted Master Plan 2030 The Master Plan is aimed at providing a comprehensive blueprint for the sustainable development of the Park over the next 21 years The Authority anticipates that construction of new high-grade commercial office space, medium to high density housing, education campus facilities and retail outlets will support an expected daily population of up to 45,000 people by 2030 Major Projects at the Park In the 2009 financial year the Commonwealth Bank of Australia completed the last of three new office buildings The complex provides 61,000 square metres of office space and accommodates 3,500 staff Construction of a $51.0 million sports and specialist hospital is expected to commence in mid 2010 It will cater to an expected 155,000 patient visits per year when opened Other developments planned or underway include:    $320 million residential development $20 million office and retail development $20 million serviced apartment complex This is trial version www.adultpdf.com Auditor-General’s Report to Parliament 2009 Volume Nine 45 Sydney Olympic Park Authority _ FINANCIAL INFORMATION Abridged Consolidated Income Statements Year ended 30 June Consolidated 2009 $’000 Employee related Personnel services Operating expenses Depreciation and amortisation Grants and subsidies Parent 2008 $’000 2009 $’000 2008 $’000 19,824 565 53,014 50,706 800 19,798 1,134 46,230 40,547 3,800 -19,755 52,367 50,706 1,520 -20,212 45,837 40,547 4,760 124,909 111,509 124,348 111,356 TOTAL REVENUE Gain/(loss) on sale of non-current assets Other gains 44,762 39,233 45,464 39,644 (129) 21,946 993 19,859 (129) 21,946 993 19,859 NET COST OF SERVICES 58,330 51,424 57,067 50,860 Government contributions 34,914 20,660 34,106 20,070 DEFICIT 23,416 30,764 22,961 30,790 TOTAL EXPENSES The decrease in grants and subsidies expense is due to a one off $3.0 million contribution paid to the Roads and Traffic Authority for intersection upgrade works in the previous year Total revenue increased mainly due to rises in car park receipts, commercial leases and revenue from the Sydney Olympic Park Aquatic and Athletic Centres Other gains primarily represent the emerging value of the right to receive assets over the concession period The increase in government contributions is mainly due to lower asset sales transferred to the Crown Entity, due to the final instalment of $19.0 million being paid on the former Lidcombe Hospital site in the prior year This is trial version www.adultpdf.com 46 _Auditor-General’s Report to Parliament 2009 Volume Nine _ Sydney Olympic Park Authority Abridged Consolidated Balance Sheets At 30 June Consolidated Parent 2009 $’000 2008 $’000 Current assets Non-current assets 52,112 1,768,636 54,008 1,701,713 50,522 1,768,636 51,918 1,701,713 TOTAL ASSETS 1,820,748 1,755,721 1,819,158 1,753,631 Current liabilities Non-current Liabilities 15,621 55,345 15,515 46,353 15,569 55,345 15,419 46,353 TOTAL LIABILITIES 70,966 61,868 70,914 61,772 1,749,782 1,693,853 1,748,244 1,691,859 NET ASSETS 2009 $’000 2008 $’000 The increase in non-current assets is primarily due to the revaluation of infrastructure which increased by $79.3 million Non-current liabilities rose due to the deferral of income received in advance for long term leases of land sites AUTHORITY’S ACTIVITIES The Authority was established in July 2001 by the Sydney Olympic Park Authority Act 2001, as a statutory body It assumed certain assets and rights of the Olympic Coordination Authority, Bicentennial Park Trust and the State Sports Centre Under the Act, the Authority:  promotes, coordinates and manages the orderly and economic development and use of Sydney Olympic Park, including the provision and management of infrastructure  conducts cultural, sporting, educational, commercial, tourist, recreational, entertainment, and transport activities and facilities  protects and enhances the natural and cultural heritage of Sydney Olympic Park, including the Millennium Parklands  provides, operates, and maintains public transport facilities within Sydney Olympic Park  liaises with and maintains arrangements with Olympic organisations, such as the International Olympic Committee and the Australian Olympic Committee Incorporated For further information on the Authority, refer to www.sopa.nsw.gov.au This is trial version www.adultpdf.com Auditor-General’s Report to Parliament 2009 Volume Nine 47 Sydney Olympic Park Authority _ CONTROLLED ENTITIES The following controlled entities have not been reported on separately as they are not considered material by their size or the nature of their operations to the consolidated entity For further financial and other information on these entities we have listed the entities’ websites Entity Name Office of the Sydney Olympic Park Authority Parklands Foundation Limited Sydney Olympic Park Authority Sydney Olympic Park Aquatic and Athletic Centres Division * Website * www.parklandsfoundation.org.au * These entities not have websites On 10 September 2009, the Authority as the sole member of Parklands Foundation Limited resolved to wind up the Foundation Any existing programs will be consolidated into the Authority This is trial version www.adultpdf.com 48 _Auditor-General’s Report to Parliament 2009 Volume Nine Minister for Sport and Recreation Centennial Park and Moore Park Trust Centennial Parklands Foundation *Hunter Region Sporting Venues Authority Sydney Cricket and Sports Ground Trust Wollongong Sportsground Trust Refer to Appendix for: Boxing Authority of New South Wales New South Wales Institute of Sport Parramatta Park Trust State Sports Centre Trust Sydney 2009 World Masters Games Organising Committee * The audit was incomplete at the time of compiling this Volume The comment will be included in a later 2009 Volume This is trial version www.adultpdf.com 49 ... version www.adultpdf.com Auditor-General’s Report to Parliament 2009 Volume Nine 45 Sydney Olympic Park Authority _ FINANCIAL INFORMATION... www.wentworthparksport.com.au This is trial version www.adultpdf.com 42 _ Auditor-General’s Report to Parliament 2009 Volume Nine Minister for Planning Sydney Olympic Park Authority This is trial... Authority AUDIT OPINION The audits of the Authority and its controlled entities’ financial reports for the year ended 30 June 2009 resulted in unqualified Independent Auditor’s Reports Unless otherwise