southern rural water2 southern rural water - annual report 2000 - 2001 a highlight of the year was...

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ANNUAL REPORT 2000/1

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Southern Rural Water - Annual Report 2000 - 2001

A commemorative cairn has been constructed at the Maffra office of SRW

to mark the 75th anniversary both of Lake Glenmaggie dam and of

irrigation of the Macalister Irrigation District from the lake. The cairn,

which is seen here together with one of the signs erected throughout the

district to mark the anniversaries, will display one of the two

commemorative plaques unveiled by the Minister.

HIGHLIGHTS OF THE YEARHIGHLIGHTS OF THE YEARHIGHLIGHTS OF THE YEARHIGHLIGHTS OF THE YEARHIGHLIGHTS OF THE YEAR

– Lake Glenmaggie dam 75th Birthday celebrations in May 2001

– Lerderderg weir withstands flash flood in October 2000

– Western storage levels improve during 2000/1,

Western Irrigation business supply secured for 2001/2

– Macalister Irrigation District suffers late season water supply

shortage

– First major valve refurbishment at Glenmaggie completed

successfully in August 2000

– New water quality monitoring station

commissioned in Werribee Irrigation

District

– Cowwarr weir also hit by flash flood in April

2001

– Twelve Streamflow Management Plans in

progress or completed during 2000/1

– Five draft Groundwater Management Plans

completed during the year, five more under

way

MISSIONMISSIONMISSIONMISSIONMISSION

The Mission of SRW is:

To operate, manage and develop our

core businesses of;

– irrigation supply,

– water storage management, and

– licensing of rural water use in

southern Victoria, professionally,

economically and sustainably.

ANNUAL REPORANNUAL REPORANNUAL REPORANNUAL REPORANNUAL REPOR T 2000/1T 2000/1T 2000/1T 2000/1T 2000/1

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VISIONVISIONVISIONVISIONVISION

The Vision of SRW is for our business to be

regarded:-

– By our customers, as a satisfactory and

preferred service provider;

– By Government (our shareholder), as fulfilling

its expectations and adding value to its

priorities; and

– By our peers, other stakeholders and the

community, as a professional, competent,

respected and progressive business.

OUR BUSINESS DRIVERSOUR BUSINESS DRIVERSOUR BUSINESS DRIVERSOUR BUSINESS DRIVERSOUR BUSINESS DRIVERS

To realise our Vision, we must:-

– Improve customer service;

– Charge the lowest viable prices;

– Safeguard our business;

– Build our capability; and

– Pursue our shareholder’s priorities.

VVVVVALUESALUESALUESALUESALUES

Our values are the principles which guide how

we work and operate our business. They

require that we achieve;

– Partnership with our customers, to

empower them to influence our business

direction and assist us in meeting their

needs;

– Transparent and sustainable prices, with

no cross-subsidies between our

businesses;

– Effective measurement and continuous

improvement in performance;

– Open and accountable decision making;

– Ethical and accountable corporate

governance;

– Environmental, social and economic

responsibility;

– Strong partnerships with others

– The recruitment and development of a

professional and motivated workforce;

and

– The best and most appropriate use of the

water we manage.

CONTENTSCONTENTSCONTENTSCONTENTSCONTENTS

Southern Rural Water ................ 2

What We Do

................................. 2

Authority Board

........................... 4

Corporate Governance

Statement

................................. 4

Chairman’s Report ...................... 6

Chief Executive’s Report ............ 8

Operations Report

.................... 10

Overview

................................ 10

Eastern Irrigation

.................. 12

Western Irrigation ................ 14

Licensing

................................ 18

Headworks

............................. 20

Capital Works

........................ 24

Resource Management ....... 26

Customer & Community

Consultation

...................... 28

Statutory Report

........................ 30

Tables .......................................... 32

Financial Report

........................ 35

Compliance Index

..................... 48

1

Minister for Environment and

Conservation, the Hon Sherryl

Garbutt MP, visited Maffra on 7

May 2001 to address the dinner to

celebrate the 75th anniversary of

the construction of Lake

Glenmaggie dam, and to unveil

commemorative plaques to be

displayed at the Maffra office and

at the dam.

88 Johnson Street

PO Box 153 Maffra

Victoria 3860

TTTTTelephone: (03) 5139 3100elephone: (03) 5139 3100elephone: (03) 5139 3100elephone: (03) 5139 3100elephone: (03) 5139 3100

Facsimile: (03) 5139 3150Facsimile: (03) 5139 3150Facsimile: (03) 5139 3150Facsimile: (03) 5139 3150Facsimile: (03) 5139 3150

Email: srw@srwEmail: srw@srwEmail: srw@srwEmail: srw@srwEmail: [email protected]

WWWWWebsite: wwwebsite: wwwebsite: wwwebsite: wwwebsite: www.srw.srw.srw.srw.srw.com.au.com.au.com.au.com.au.com.au

Editor:Editor:Editor:Editor:Editor:

Geoff Barry -

Director Business Services

Design:Design:Design:Design:Design:

DCP Multimedia

Printing:Printing:Printing:Printing:Printing:

DCP Printing

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WHAWHAWHAWHAWHAT WE DOT WE DOT WE DOT WE DOT WE DO

IRRIGAIRRIGAIRRIGAIRRIGAIRRIGATIONTIONTIONTIONTION

We operate the three gravity irrigation districts

in the southern half of Victoria - the Macalister

(near Maffra in Gippsland), and at Bacchus Marsh

and Werribee. Together these deliver an average

of 177,000 ML each year for irrigation and other

purposes.

Our irrigation businesses provide water for

pasture and crop irrigation to almost 1,400

customers, and stock and domestic water to 1,600

properties, with an average annual turnover of

$7.69 million (actual revenue for 2000/1 was $7.60

million).

LICENSINGLICENSINGLICENSINGLICENSINGLICENSING

We manage and control the taking and use of

water for irrigation and other purposes from rivers

and groundwater aquifers in southern Victoria.

We have 4,100 customers licensed to take water

from rivers and streams, and a further 3,000

customers licensed to use groundwater bores.

Average annual turnover for the Licensing

business excluding Government project funding

is $2.44 million (actual revenue in 2000/1 was $2.50

million).

HEADWORKSHEADWORKSHEADWORKSHEADWORKSHEADWORKS

We harvest and store water on behalf of bulk

entitlement holders - our own irrigation

customers, urban water authorities and Latrobe

Valley power generators - from four major

systems and seven large dams at Pykes Creek,

Merrimu, Gisborne, Melton, Blue Rock, Yallourn

and Glenmaggie.

Our Headworks business delivers around 300,000

ML in bulk supplies each year. Average business

turnover net of recoverable works is $4.42 million.

Actual revenue for 2000/1, including recoverable

works of $273,000, was $4.82 million.

2 Southern Rural Water - Annual Report 2000 - 2001

A highlight of the year was the series of conducted bus

tours into the Lerderderg weir on 25 March 2001. Business

Manager Headworks Pat Caruso was one of the tour guides

and is seen addressing a group of visitors at the weir.

SOUTHERNSOUTHERNSOUTHERNSOUTHERNSOUTHERN

RURAL WATERRURAL WATERRURAL WATERRURAL WATERRURAL WATER

( S R W ) i s r e s p o n s i b l e f o r r u r a l( S R W ) i s r e s p o n s i b l e f o r r u r a l

( S R W ) i s r e s p o n s i b l e f o r r u r a l( S R W ) i s r e s p o n s i b l e f o r r u r a l

( S R W ) i s r e s p o n s i b l e f o r r u r a l

w a t e r s u p p l y a n d t h e o p e r a t i o nw a t e r s u p p l y a n d t h e o p e r a t i o n

w a t e r s u p p l y a n d t h e o p e r a t i o nw a t e r s u p p l y a n d t h e o p e r a t i o n

w a t e r s u p p l y a n d t h e o p e r a t i o n

o f p r i n c i p a l r u r a l h e a d w o r k so f p r i n c i p a l r u r a l h e a d w o r k s

o f p r i n c i p a l r u r a l h e a d w o r k so f p r i n c i p a l r u r a l h e a d w o r k s

o f p r i n c i p a l r u r a l h e a d w o r k s

s t o r a g e s y s t e m s , a c r o s s t h es t o r a g e s y s t e m s , a c r o s s t h e

s t o r a g e s y s t e m s , a c r o s s t h es t o r a g e s y s t e m s , a c r o s s t h e

s t o r a g e s y s t e m s , a c r o s s t h e

e n t i r e s o u t h e r n p a r t o f V i c t o r i ae n t i r e s o u t h e r n p a r t o f V i c t o r i a

e n t i r e s o u t h e r n p a r t o f V i c t o r i ae n t i r e s o u t h e r n p a r t o f V i c t o r i a

e n t i r e s o u t h e r n p a r t o f V i c t o r i a

f r o m t h e G r e a t D i v i d e t o t h ef r o m t h e G r e a t D i v i d e t o t h e

f r o m t h e G r e a t D i v i d e t o t h ef r o m t h e G r e a t D i v i d e t o t h e

f r o m t h e G r e a t D i v i d e t o t h e

c o a s t .c o a s t .

c o a s t .c o a s t .

c o a s t .

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O u r c u s t o m e r s a r eO u r c u s t o m e r s a r e

O u r c u s t o m e r s a r e

p r e d o m i n a n t l y t h e f a r m e r s ,p r e d o m i n a n t l y t h e f a r m e r s ,

p r e d o m i n a n t l y t h e f a r m e r s ,p r e d o m i n a n t l y t h e f a r m e r s ,

p r e d o m i n a n t l y t h e f a r m e r s ,

g r a z i e r s a n d g r o w e r s o fg r a z i e r s a n d g r o w e r s o f

g r a z i e r s a n d g r o w e r s o fg r a z i e r s a n d g r o w e r s o f

g r a z i e r s a n d g r o w e r s o f

s o u t h e r n V i c t o r i a , b u t w e a l s os o u t h e r n V i c t o r i a , b u t w e a l s o

s o u t h e r n V i c t o r i a , b u t w e a l s os o u t h e r n V i c t o r i a , b u t w e a l s o

s o u t h e r n V i c t o r i a , b u t w e a l s o

h a r v e s t w a t e r i n b u l k o n b e h a l fh a r v e s t w a t e r i n b u l k o n b e h a l f

h a r v e s t w a t e r i n b u l k o n b e h a l fh a r v e s t w a t e r i n b u l k o n b e h a l f

h a r v e s t w a t e r i n b u l k o n b e h a l f

o f n o n - m e t r o p o l i t a n u r b a no f n o n - m e t r o p o l i t a n u r b a n

o f n o n - m e t r o p o l i t a n u r b a no f n o n - m e t r o p o l i t a n u r b a n

o f n o n - m e t r o p o l i t a n u r b a n

w a t e r a u t h o r i t i e s a n d L a t r o b ew a t e r a u t h o r i t i e s a n d L a t r o b e

w a t e r a u t h o r i t i e s a n d L a t r o b ew a t e r a u t h o r i t i e s a n d L a t r o b e

w a t e r a u t h o r i t i e s a n d L a t r o b e

V a l l e y e l e c t r i c i t y g e n e r a t o r s ,V a l l e y e l e c t r i c i t y g e n e r a t o r s ,

V a l l e y e l e c t r i c i t y g e n e r a t o r s ,V a l l e y e l e c t r i c i t y g e n e r a t o r s ,

V a l l e y e l e c t r i c i t y g e n e r a t o r s ,

w h o h o l d B u l k E n t i t l e m e n t s o rw h o h o l d B u l k E n t i t l e m e n t s o r

w h o h o l d B u l k E n t i t l e m e n t s o rw h o h o l d B u l k E n t i t l e m e n t s o r

w h o h o l d B u l k E n t i t l e m e n t s o r

o t h e r a g r e e m e n t s t o t a k e a n do t h e r a g r e e m e n t s t o t a k e a n d

o t h e r a g r e e m e n t s t o t a k e a n do t h e r a g r e e m e n t s t o t a k e a n d

o t h e r a g r e e m e n t s t o t a k e a n d

u s e w a t e r f r o m o u r s t o r a g e s .u s e w a t e r f r o m o u r s t o r a g e s .

u s e w a t e r f r o m o u r s t o r a g e s .u s e w a t e r f r o m o u r s t o r a g e s .

u s e w a t e r f r o m o u r s t o r a g e s .

W e s e r v i c e a r o u n d 1 0 , 0 0 0W e s e r v i c e a r o u n d 1 0 , 0 0 0

W e s e r v i c e a r o u n d 1 0 , 0 0 0W e s e r v i c e a r o u n d 1 0 , 0 0 0

W e s e r v i c e a r o u n d 1 0 , 0 0 0

c u s t o m e r s a n d i n 2 0 0 0 / 1c u s t o m e r s a n d i n 2 0 0 0 / 1

c u s t o m e r s a n d i n 2 0 0 0 / 1c u s t o m e r s a n d i n 2 0 0 0 / 1

c u s t o m e r s a n d i n 2 0 0 0 / 1

g e n e r a t e d $ 1 6 . 6 m i l l i o n i ng e n e r a t e d $ 1 6 . 6 m i l l i o n i n

g e n e r a t e d $ 1 6 . 6 m i l l i o n i ng e n e r a t e d $ 1 6 . 6 m i l l i o n i n

g e n e r a t e d $ 1 6 . 6 m i l l i o n i n

o p e r a t i n g t u r n o v e r f r o m a l lo p e r a t i n g t u r n o v e r f r o m a l l

o p e r a t i n g t u r n o v e r f r o m a l lo p e r a t i n g t u r n o v e r f r o m a l l

o p e r a t i n g t u r n o v e r f r o m a l l

s o u r c e s . W e e x p e n d a r o u n d $ 3s o u r c e s . W e e x p e n d a r o u n d $ 3

s o u r c e s . W e e x p e n d a r o u n d $ 3s o u r c e s . W e e x p e n d a r o u n d $ 3

s o u r c e s . W e e x p e n d a r o u n d $ 3

m i l l i o n i n c a p i t a l w o r k s e a c hm i l l i o n i n c a p i t a l w o r k s e a c h

m i l l i o n i n c a p i t a l w o r k s e a c hm i l l i o n i n c a p i t a l w o r k s e a c h

m i l l i o n i n c a p i t a l w o r k s e a c h

y e a r .y e a r .

y e a r .y e a r .

y e a r .

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O u r p r i n c i p a l O f f i c e i s i nO u r p r i n c i p a l O f f i c e i s i n

O u r p r i n c i p a l O f f i c e i s i n

M a f f r a , i n c e n t r a l G i p p s l a n d .M a f f r a , i n c e n t r a l G i p p s l a n d .

M a f f r a , i n c e n t r a l G i p p s l a n d .M a f f r a , i n c e n t r a l G i p p s l a n d .

M a f f r a , i n c e n t r a l G i p p s l a n d .

M a f f r a i s t h e h u b o f t h eM a f f r a i s t h e h u b o f t h e

M a f f r a i s t h e h u b o f t h eM a f f r a i s t h e h u b o f t h e

M a f f r a i s t h e h u b o f t h e

M a c a l i s t e r I r r i g a t i o n D i s t r i c t ,M a c a l i s t e r I r r i g a t i o n D i s t r i c t ,

M a c a l i s t e r I r r i g a t i o n D i s t r i c t ,M a c a l i s t e r I r r i g a t i o n D i s t r i c t ,

M a c a l i s t e r I r r i g a t i o n D i s t r i c t ,

w h i c h c o v e r s 5 5 , 0 0 0 h e c t a r e sw h i c h c o v e r s 5 5 , 0 0 0 h e c t a r e s

w h i c h c o v e r s 5 5 , 0 0 0 h e c t a r e sw h i c h c o v e r s 5 5 , 0 0 0 h e c t a r e s

w h i c h c o v e r s 5 5 , 0 0 0 h e c t a r e s

a n d i s o u r l a r g e s t s i n g l ea n d i s o u r l a r g e s t s i n g l e

a n d i s o u r l a r g e s t s i n g l ea n d i s o u r l a r g e s t s i n g l e

a n d i s o u r l a r g e s t s i n g l e

b u s i n e s s u n i t . W e a l s o h a v e ab u s i n e s s u n i t . W e a l s o h a v e a

b u s i n e s s u n i t . W e a l s o h a v e ab u s i n e s s u n i t . W e a l s o h a v e a

b u s i n e s s u n i t . W e a l s o h a v e a

d i s t r i c t o f f i c e a t W e r r i b e e . I nd i s t r i c t o f f i c e a t W e r r i b e e . I n

d i s t r i c t o f f i c e a t W e r r i b e e . I nd i s t r i c t o f f i c e a t W e r r i b e e . I n

d i s t r i c t o f f i c e a t W e r r i b e e . I n

o r d e r t o e n s u r e t h a t p r o m p to r d e r t o e n s u r e t h a t p r o m p t

o r d e r t o e n s u r e t h a t p r o m p to r d e r t o e n s u r e t h a t p r o m p t

o r d e r t o e n s u r e t h a t p r o m p t

a n d e f f i c i e n t s e r v i c e s a r ea n d e f f i c i e n t s e r v i c e s a r e

a n d e f f i c i e n t s e r v i c e s a r ea n d e f f i c i e n t s e r v i c e s a r e

a n d e f f i c i e n t s e r v i c e s a r e

a v a i l a b l e t o a l l o u r c u s t o m e r s ,a v a i l a b l e t o a l l o u r c u s t o m e r s ,

a v a i l a b l e t o a l l o u r c u s t o m e r s ,a v a i l a b l e t o a l l o u r c u s t o m e r s ,

a v a i l a b l e t o a l l o u r c u s t o m e r s ,

h o w e v e r r e m o t e , S R W h a s ah o w e v e r r e m o t e , S R W h a s a

h o w e v e r r e m o t e , S R W h a s ah o w e v e r r e m o t e , S R W h a s a

h o w e v e r r e m o t e , S R W h a s a

n e t w o r k o f f i e l d s t a f f l o c a t e dn e t w o r k o f f i e l d s t a f f l o c a t e d

n e t w o r k o f f i e l d s t a f f l o c a t e dn e t w o r k o f f i e l d s t a f f l o c a t e d

n e t w o r k o f f i e l d s t a f f l o c a t e d

s t r a t e g i c a l l y a c r o s s o u r r e g i o n .s t r a t e g i c a l l y a c r o s s o u r r e g i o n .

s t r a t e g i c a l l y a c r o s s o u r r e g i o n .s t r a t e g i c a l l y a c r o s s o u r r e g i o n .

s t r a t e g i c a l l y a c r o s s o u r r e g i o n .

W e a r e t h e s e c o n d l a r g e s tW e a r e t h e s e c o n d l a r g e s t

W e a r e t h e s e c o n d l a r g e s tW e a r e t h e s e c o n d l a r g e s t

W e a r e t h e s e c o n d l a r g e s t

r u r a l w a t e r a u t h o r i t y i n V i c t o r i ar u r a l w a t e r a u t h o r i t y i n V i c t o r i a

r u r a l w a t e r a u t h o r i t y i n V i c t o r i ar u r a l w a t e r a u t h o r i t y i n V i c t o r i a

r u r a l w a t e r a u t h o r i t y i n V i c t o r i a

a n d o u r s t a f f o f a r o u n d 1 0 0a n d o u r s t a f f o f a r o u n d 1 0 0

a n d o u r s t a f f o f a r o u n d 1 0 0a n d o u r s t a f f o f a r o u n d 1 0 0

a n d o u r s t a f f o f a r o u n d 1 0 0

m a n a g e s t h e S t a t e ’ s l a r g e s tm a n a g e s t h e S t a t e ’ s l a r g e s t

m a n a g e s t h e S t a t e ’ s l a r g e s tm a n a g e s t h e S t a t e ’ s l a r g e s t

m a n a g e s t h e S t a t e ’ s l a r g e s t

g r o u n d w a t e r o p e r a t i o n a n d i t sg r o u n d w a t e r o p e r a t i o n a n d i t s

g r o u n d w a t e r o p e r a t i o n a n d i t sg r o u n d w a t e r o p e r a t i o n a n d i t s

g r o u n d w a t e r o p e r a t i o n a n d i t s

s e c o n d l a r g e s t n o n -s e c o n d l a r g e s t n o n -

s e c o n d l a r g e s t n o n -s e c o n d l a r g e s t n o n -

s e c o n d l a r g e s t n o n -

m e t r o p o l i t a n h e a d w o r k sm e t r o p o l i t a n h e a d w o r k s

m e t r o p o l i t a n h e a d w o r k sm e t r o p o l i t a n h e a d w o r k s

m e t r o p o l i t a n h e a d w o r k s

b u s i n e s s .b u s i n e s s .

b u s i n e s s .b u s i n e s s .

b u s i n e s s .

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S R W c o v e r s t h e s o u t h e r n h a l fS R W c o v e r s t h e s o u t h e r n h a l f

S R W c o v e r s t h e s o u t h e r n h a l fS R W c o v e r s t h e s o u t h e r n h a l f

S R W c o v e r s t h e s o u t h e r n h a l f

o f V i c t o r i a . T h i s m a p o f o u ro f V i c t o r i a . T h i s m a p o f o u r

o f V i c t o r i a . T h i s m a p o f o u ro f V i c t o r i a . T h i s m a p o f o u r

o f V i c t o r i a . T h i s m a p o f o u r

r e g i o n h i g h l i g h t s t h e m a j o rr e g i o n h i g h l i g h t s t h e m a j o r

r e g i o n h i g h l i g h t s t h e m a j o rr e g i o n h i g h l i g h t s t h e m a j o r

r e g i o n h i g h l i g h t s t h e m a j o r

r i v e r s f l o w i n g s o u t h , o u r t h r e er i v e r s f l o w i n g s o u t h , o u r t h r e e

r i v e r s f l o w i n g s o u t h , o u r t h r e er i v e r s f l o w i n g s o u t h , o u r t h r e e

r i v e r s f l o w i n g s o u t h , o u r t h r e e

i r r i g a t i o n d i s t r i c t s a n d o u ri r r i g a t i o n d i s t r i c t s a n d o u r

i r r i g a t i o n d i s t r i c t s a n d o u ri r r i g a t i o n d i s t r i c t s a n d o u r

i r r i g a t i o n d i s t r i c t s a n d o u r

o f f i c e l o c a t i o n s .o f f i c e l o c a t i o n s .

o f f i c e l o c a t i o n s .o f f i c e l o c a t i o n s .

o f f i c e l o c a t i o n s .

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BOARD COMMITTEESBOARD COMMITTEESBOARD COMMITTEESBOARD COMMITTEESBOARD COMMITTEES

The SRW Board has established four Committees

to assist it to conduct its business effectively

and efficiently. The four committees and their

members to 30 June 2001 were:

AUDI T COMMI TTEE:AUDI T COMMI TTEE:AUDI T COMMI TTEE:AUDI T COMMI TTEE:AUDI T COMMI TTEE:

Mr Fost er ( Chai rman) , Mrs Li l ey, Mr Cri ck.

BUSINESS PLANNING COMMITTEE:BUSINESS PLANNING COMMITTEE:BUSINESS PLANNING COMMITTEE:BUSINESS PLANNING COMMITTEE:BUSINESS PLANNING COMMITTEE:

Dr Walsh (Chairman), Mrs McMillan, Mr Tilleard.

REMUNERATION AND CORPORATEREMUNERATION AND CORPORATEREMUNERATION AND CORPORATEREMUNERATION AND CORPORATEREMUNERATION AND CORPORATE

GOVERNANCE POLICY COMMITTEE:GOVERNANCE POLICY COMMITTEE:GOVERNANCE POLICY COMMITTEE:GOVERNANCE POLICY COMMITTEE:GOVERNANCE POLICY COMMITTEE:

Mr Pappin (Chairman), Dr Walsh, Mr Foster.

TECHNICAL COMMITTEE:TECHNICAL COMMITTEE:TECHNICAL COMMITTEE:TECHNICAL COMMITTEE:TECHNICAL COMMITTEE:

Mr Tilleard (Chairman), Mr Koch, Mr Nicol.

CORPORATE GOVERNANCECORPORATE GOVERNANCECORPORATE GOVERNANCECORPORATE GOVERNANCECORPORATE GOVERNANCE

STATEMENTSTATEMENTSTATEMENTSTATEMENTSTATEMENT

The SRW Board has established general princi-

ples under which it and management operate, to

ensure that the Authority fulfils its responsibilities

in the best interest of Government, customers and

the community. These principles are as follows:

ROLE OF THE BOARDROLE OF THE BOARDROLE OF THE BOARDROLE OF THE BOARDROLE OF THE BOARD– To be accountable to the Minister for the

achievement of the results and targets

required by Government

– To ensure that customers and other

stakeholders are adequately consulted by

management

– To plan the future of the Authority

– To set, review and amend policies to direct

the Authority

– To appoint the Chief Executive

– To assess the performance of the Authority

and the Chief Executive

– To avoid unacceptable actions and situations.

MANAGEMENT OF THE AUTHORITYMANAGEMENT OF THE AUTHORITYMANAGEMENT OF THE AUTHORITYMANAGEMENT OF THE AUTHORITYMANAGEMENT OF THE AUTHORITY– The Chief Executive is accountable to the

Board, not the individual members, and is

responsible to the Board for the operation of

the Authority

– The Chief Executive:

– manages the Authority

– is the connection between the Board and

the Authority

– makes recommendations to the Board

concerning the Authority and

– implements the policies of the Board.

– The Board instructs the Chief Executive

through written policies

– The Board monitors and assesses the

performance of the Authority and the Chief

Executive.

The SRW Board pictured prior to its final meeting on 5 June 2001 (L to R).

Standing: Mr Pat Foster, Mr David Koch, Mr John Tilleard, Mr John Nicol and Mr Geoff Crick.

Seated: Mrs Jennifer McMillan, Mr Allan Pappin (Chairman), Dr Greg Walsh (Deputy Chairman) and Mrs

Joan Liley.

AUTHORITY BOARDAUTHORITY BOARDAUTHORITY BOARDAUTHORITY BOARDAUTHORITY BOARD

S R W c o n t i n u e d t o b eS R W c o n t i n u e d t o b e

S R W c o n t i n u e d t o b eS R W c o n t i n u e d t o b e

S R W c o n t i n u e d t o b e

c o n t r o l l e d i n 2 0 0 0 / 1 b y a B o a r dc o n t r o l l e d i n 2 0 0 0 / 1 b y a B o a r d

c o n t r o l l e d i n 2 0 0 0 / 1 b y a B o a r dc o n t r o l l e d i n 2 0 0 0 / 1 b y a B o a r d

c o n t r o l l e d i n 2 0 0 0 / 1 b y a B o a r d

o f n i n e m e m b e r s , a p p o i n t e do f n i n e m e m b e r s , a p p o i n t e d

o f n i n e m e m b e r s , a p p o i n t e do f n i n e m e m b e r s , a p p o i n t e d

o f n i n e m e m b e r s , a p p o i n t e d

u n d e r P a r t 6 o f t h e u n d e r P a r t 6 o f t h e

u n d e r P a r t 6 o f t h e u n d e r P a r t 6 o f t h e

u n d e r P a r t 6 o f t h e Water ActWater ActWater ActWater ActWater Act

19891989198919891989, f o r a t h r e e y e a r t e r m, f o r a t h r e e y e a r t e r m

, f o r a t h r e e y e a r t e r m, f o r a t h r e e y e a r t e r m

, f o r a t h r e e y e a r t e r m

e x p i r i n g o n 3 0 J u n e 2 0 0 1 .e x p i r i n g o n 3 0 J u n e 2 0 0 1 .

e x p i r i n g o n 3 0 J u n e 2 0 0 1 .e x p i r i n g o n 3 0 J u n e 2 0 0 1 .

e x p i r i n g o n 3 0 J u n e 2 0 0 1 .

D u r i n g J u n e 2 0 0 1 t h e M i n i s t e rD u r i n g J u n e 2 0 0 1 t h e M i n i s t e r

D u r i n g J u n e 2 0 0 1 t h e M i n i s t e rD u r i n g J u n e 2 0 0 1 t h e M i n i s t e r

D u r i n g J u n e 2 0 0 1 t h e M i n i s t e r

f o r C o n s e r v a t i o n a n df o r C o n s e r v a t i o n a n d

f o r C o n s e r v a t i o n a n df o r C o n s e r v a t i o n a n d

f o r C o n s e r v a t i o n a n d

E n v i r o n m e n t a n n o u n c e d t h eE n v i r o n m e n t a n n o u n c e d t h e

E n v i r o n m e n t a n n o u n c e d t h eE n v i r o n m e n t a n n o u n c e d t h e

E n v i r o n m e n t a n n o u n c e d t h e

a p p o i n t m e n t o f a n e w B o a r d o fa p p o i n t m e n t o f a n e w B o a r d o f

a p p o i n t m e n t o f a n e w B o a r d o fa p p o i n t m e n t o f a n e w B o a r d o f

a p p o i n t m e n t o f a n e w B o a r d o f

e i g h t m e m b e r s t o t a k e e f f e c te i g h t m e m b e r s t o t a k e e f f e c t

e i g h t m e m b e r s t o t a k e e f f e c te i g h t m e m b e r s t o t a k e e f f e c t

e i g h t m e m b e r s t o t a k e e f f e c t

f r o m 1 J u l y 2 0 0 1 .f r o m 1 J u l y 2 0 0 1 .

f r o m 1 J u l y 2 0 0 1 .f r o m 1 J u l y 2 0 0 1 .

f r o m 1 J u l y 2 0 0 1 .

T h e B o a r d f o r 2 0 0 0 / 1T h e B o a r d f o r 2 0 0 0 / 1

T h e B o a r d f o r 2 0 0 0 / 1T h e B o a r d f o r 2 0 0 0 / 1

T h e B o a r d f o r 2 0 0 0 / 1

c o m p r i s e d t h e f o l l o w i n gc o m p r i s e d t h e f o l l o w i n g

c o m p r i s e d t h e f o l l o w i n gc o m p r i s e d t h e f o l l o w i n g

c o m p r i s e d t h e f o l l o w i n g

m e m b e r s :m e m b e r s :

m e m b e r s :m e m b e r s :

m e m b e r s :

A l l a n P a p p i n C V O A M ,A l l a n P a p p i n C V O A M ,

A l l a n P a p p i n C V O A M ,A l l a n P a p p i n C V O A M ,

A l l a n P a p p i n C V O A M ,

C h a i r m a n , C h a i r m a n ,


C h a i r m a n , i s a f a r m e r f r o m

C a l u l u , n e a r B a i r n s d a l e i n E a s t

G i p p s l a n d .

D r G r e g W a l s h , D e p u t yD r G r e g W a l s h , D e p u t y

D r G r e g W a l s h , D e p u t yD r G r e g W a l s h , D e p u t y

D r G r e g W a l s h , D e p u t y



C h a i r m a n , i s a b u s i n e s s

c o n s u l t a n t a n d c o m p a n y

d i r e c t o r f r o m W a r r n a m b o o l i n

s o u t h w e s t V i c t o r i a .

G e o f f C r i c k , G e o f f C r i c k ,

G e o f f C r i c k , G e o f f C r i c k ,

G e o f f C r i c k , i s a f a r m e r f r o m

B l o w h a r d , n e a r B a l l a r a t i n

c e n t r a l V i c t o r i a a n d a n

e x e c u t i v e m e m b e r o f t h e

V i c t o r i a n F a r m e r s F e d e r a t i o n .

P a t r i c k F o s t e r , P a t r i c k F o s t e r ,

P a t r i c k F o s t e r , P a t r i c k F o s t e r ,

P a t r i c k F o s t e r , i s a p u b l i c

a c c o u n t a n t w i t h p r a c t i c e s i n

W e r r i b e e a n d C o l a c .

D a v i d K o c h , D a v i d K o c h ,

D a v i d K o c h , D a v i d K o c h ,

D a v i d K o c h , i s a f a r m e r f r o m

N a r e e n , n o r t h o f C o l e r a i n e i n

w e s t e r n V i c t o r i a , a n d a B o a r d

m e m b e r o f W e s t e r n D i s t r i c t

H e a l t h S e r v i c e s .

J o a n L i l e y , J o a n L i l e y ,

J o a n L i l e y , J o a n L i l e y ,

J o a n L i l e y , i s b o t h a b e e f /

s h e e p f a r m e r a n d a s e c o n d a r y

e c o n o m i c s t e a c h e r , f r o m

W a l k e r v i l l e , n e a r W i l s o n ’ s

P r o m o n t o r y i n s o u t h G i p p s l a n d .

J e n n i f e r M c M i l l a n , J e n n i f e r M c M i l l a n ,

J e n n i f e r M c M i l l a n , J e n n i f e r M c M i l l a n ,

J e n n i f e r M c M i l l a n , i s a d a i r y

f a r m e r f r o m D e n i s o n i n t h e

M a c a l i s t e r I r r i g a t i o n D i s t r i c t i n

c e n t r a l G i p p s l a n d , a n d w a s t h e

r e c i p i e n t o f t h e y e a r 2 0 0 0 J a c k

G r e e n C h u r c h i l l F e l l o w s h i p .

J o h n N i c o l O A M , J o h n N i c o l O A M ,

J o h n N i c o l O A M , J o h n N i c o l O A M ,

J o h n N i c o l O A M , i s a n

e n g i n e e r i n g c o n s u l t a n t f r o m

W e r r i b e e .

J o h n T i l l e a r d , J o h n T i l l e a r d ,

J o h n T i l l e a r d , J o h n T i l l e a r d ,

J o h n T i l l e a r d , i s a n e n g i n e e r i n g

c o n s u l t a n t f r o m S a l e , i n c e n t r a l

G i p p s l a n d .

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MEMBERSHIP OF THE BOARDMEMBERSHIP OF THE BOARDMEMBERSHIP OF THE BOARDMEMBERSHIP OF THE BOARDMEMBERSHIP OF THE BOARD– Nine (9) non-executive members until 30

June 2001

– From 1 July 2001, seven (7) non-executive

members and the Chief Executive

– All members are appointed for a three year

period

– Members are appointed by the Minister in

accordance with provisions of the Water Act1989

– The Chairman is appointed by the Minister

– The Deputy Chairman is appointed by the

Board

– Board remuneration is set by the Minister.

BOARD COMMITTEESBOARD COMMITTEESBOARD COMMITTEESBOARD COMMITTEESBOARD COMMITTEES– The following Committees assist the Board in

the effective execution of its governance

responsibilities:

– Audit Committee

– Business Planning Committee

– Remuneration and Corporate Governance

Policy Committee

– Technical Committee.

– Committees have formal Terms of Reference,

report to the Board and liaise closely with the

Chief Executive and senior management to

ensure that their activities support and

enhance the governance role of the Board.

STSTSTSTSTAAAAATUS AND INDEPENDENCETUS AND INDEPENDENCETUS AND INDEPENDENCETUS AND INDEPENDENCETUS AND INDEPENDENCE– Members must disclose any conflict of

pecuniary or other interest

– Members are appointed to bring specific

skills and experience to the Board, not to

represent any constituency

– Regular formal and informal

meetings with customer,

community and government

groups and individuals.

ETHICSETHICSETHICSETHICSETHICS– The Board is committed to

compliance with the spirit and the

letter of legislation

– The safety and health of the

Authority staff is a key focus

– All Board and Authority

responsibilities and functions are

undertaken in accordance with

the following governance values:

– the expectations of itsshareholder

– the skills and experience of itsmembers

– the knowledge and expertise of itscustomers

– enhancing customer value

– strategic planning for the future

– Authority rather than individual orfactional priorities

– outward vision rather than internalpreoccupation

– encouragement of diversity inviewpoints

– strategic leadership more thanadministrative detail

– clear distinction of Board andChief Executive roles

– collective rather than individualdecisions

– future rather than past or presentand

– proactivity rather than reactivity.

– Members may access independent

professional advice subject to approval by

the Chairman.

RISK MANAGEMENTRISK MANAGEMENTRISK MANAGEMENTRISK MANAGEMENTRISK MANAGEMENT– Risk Management is recognised as a key

Board responsibility

– Formal risk assessment processes and risk

avoidance and management plans are in

place

– Regular and comprehensive reviews are

undertaken to ensure that the business risks

of the Authority are being properly and

effectively managed

– Contingency and emergency management

plans are in place for significant risks.

DUE DILIGENCEDUE DILIGENCEDUE DILIGENCEDUE DILIGENCEDUE DILIGENCE– Regular management reports to the Board

– Regular formal reviews of performance

undertaken by senior management and

Board sub-committees

– Major reviews, audits and assessments

undertaken as required according to

identified priorities or needs

– Clear review and audit responsibilities

established for Board sub-committees

– Direct sub-committee access to internal and

external audit.

ASSESSMENT AND DEVELOPMENTASSESSMENT AND DEVELOPMENTASSESSMENT AND DEVELOPMENTASSESSMENT AND DEVELOPMENTASSESSMENT AND DEVELOPMENT– A regular, annual, formal program of Board

self assessment

– A planned annual program of formal

education or training in topics identified

during the assessment process

– A planned and ongoing program of visits to

key locations in the Authority’s region

5

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CHAIRMAN’S REPORTCHAIRMAN’S REPORTCHAIRMAN’S REPORTCHAIRMAN’S REPORTCHAIRMAN’S REPORT

I t w i l l n o t b e s u f f i c i e n t f o r u s t oI t w i l l n o t b e s u f f i c i e n t f o r u s t o

I t w i l l n o t b e s u f f i c i e n t f o r u s t oI t w i l l n o t b e s u f f i c i e n t f o r u s t o

I t w i l l n o t b e s u f f i c i e n t f o r u s t o

m e r e l y a c h i e v e a p p r o p r i a t em e r e l y a c h i e v e a p p r o p r i a t e

m e r e l y a c h i e v e a p p r o p r i a t em e r e l y a c h i e v e a p p r o p r i a t e

m e r e l y a c h i e v e a p p r o p r i a t e

f i n a n c i a l o u t c o m e s . W e m u s tf i n a n c i a l o u t c o m e s . W e m u s t

f i n a n c i a l o u t c o m e s . W e m u s tf i n a n c i a l o u t c o m e s . W e m u s t

f i n a n c i a l o u t c o m e s . W e m u s t

d e m o n s t r a t e c l e a r l y t h a t o u rd e m o n s t r a t e c l e a r l y t h a t o u r

d e m o n s t r a t e c l e a r l y t h a t o u rd e m o n s t r a t e c l e a r l y t h a t o u r

d e m o n s t r a t e c l e a r l y t h a t o u r

b u s i n e s s d e c i s i o n s a n db u s i n e s s d e c i s i o n s a n d

b u s i n e s s d e c i s i o n s a n db u s i n e s s d e c i s i o n s a n d

b u s i n e s s d e c i s i o n s a n d

o u t c o m e s a l s o b e n e f i t s o c i e t yo u t c o m e s a l s o b e n e f i t s o c i e t y

o u t c o m e s a l s o b e n e f i t s o c i e t yo u t c o m e s a l s o b e n e f i t s o c i e t y

o u t c o m e s a l s o b e n e f i t s o c i e t y

a n d t h e e n v i r o n m e n t .a n d t h e e n v i r o n m e n t .

a n d t h e e n v i r o n m e n t .a n d t h e e n v i r o n m e n t .

a n d t h e e n v i r o n m e n t .

In my final Report as Chairman of SRW I would

like to focus on three things:

• the uncertainty inherent in our industry;

• the challenges confronting it; and

• the colleagues with whom I have been

privileged to work.

Uncertainty was demonstrated during 2000/1 by

the varied fortunes of our irrigation district

customers. In Bacchus Marsh and Werribee

there were good supplies of water in storage at

the start of the year and customers had no

difficulty accessing required volumes throughout

the year. Moderate weather conditions meant

that sales revenues were down in both districts

as the water was simply not needed.

By contrast the Macalister Irrigation District

effectively ran out of water in April, despite

beginning the irrigation season with ample

volume available. Lake Glenmaggie was full three

months into the season and stayed that way up

until 27 November. Indeed, off-quota water was

available to customers throughout the period from

13 September to 26 November.

From then onwards, however, prolonged dry and

hot weather in combination with heavy usage

drained Glenmaggie at an alarming rate during

December and January. Rain late in January was

only a brief respite before the cycle of high usage

and low or no inflows recommenced in February.

As a consequence SRW was forced to impose

severe restrictions on irrigators during April. An

initial cap at water right plus 50% sales quickly

dropped to water right only. This meant that there

were few opportunities for farmers to trade water

or to make alternative plans to accommodate the

restrictions. Initially some 130 farmers were

subject to withdrawal of supply due to the 150%

restrictions, with the majority of customers being

affected by the eventual 100% cap.

Change and challenge are ever-present realities,

even in an efficient and successful business such

as ours, and SRW, together with our peer RWAs

and our metropolitan colleagues, faces

formidable challenges in 2001/2 and beyond. We

must not only continue to provide the excellent

customer service and maintain the clear

customer focus that we have developed over the

last decade, but must also respond to changing

and emerging Government and community

expectations, particularly in respect of the best

use of the valuable resource we manage, on

behalf of all beneficiaries - including the

environment.

In this context the expectations of triple bottom

line accounting will become more and more

important in measuring our operational success

in coming years. It will not be sufficient for us to

merely achieve appropriate financial outcomes.

We must demonstrate clearly that our business

decisions and outcomes also benefit society and

the environment.

This will be particularly the case in respect of our

Licensing business, as we continue to address

complex problems associated with the

management of Groundwater and Surface Water.

The key to success will lie in our ability to engage

the various groups and individuals on whom these

resources impact - our customers, other

stakeholders, Government and, of course the

wider community.

Allan J Pappin CVO AM, Chairman SRW.

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7

That engagement will be a challenge for our

processes of communication, especially in the

south west of the State, where the majority of our

Licensing customers are located. We must ensure

that we can communicate ideas, plans and

information clearly, widely, understandably and

accurately. Only by doing so will we adequately

engage and involve those affected by

developments in these areas. That engagement

must take place; without it the achievement of

essential and desirable triple bottom line reforms

and outcomes will be impossible.

In relation to the governance and management

of SRW, the term of office of the current SRW

Board expires on 30 June 2001. The Minister for

Environment and Conservation has announced

the membership of the new Board, which will be

substantially changed both in structure and

membership. The Minister has invited me to

remain as Chairman of the new Board until 31

December 2001.

In all, three of the current Board members have

been re-appointed and my congratulations go to

Mrs Jennifer Macmillan and Mr Geoff Crick. To

my retiring colleagues I offer my heartfelt thanks

and appreciation for your efforts on behalf of

SRW, our customers and our communities

throughout your tenure. In particular I would like

to acknowledge Dr Greg Walsh, Mr John Tilleard,

Mr Pat Foster and Mr John Nicol who, as

foundation members of the SRW Board in 1995,

have shared with me the experience - sometimes

frustrating, sometimes exhilarating, but always

rewarding - of building the Authority into the

progressive, respected and professional

organisation it is today.

Mrs Joan Liley and Mr David Koch also retire at

30 June and to them too I offer my thanks for their

enthusiasm, involvement and contribution during

their appointments. It is a daunting task to join a

Board such as this “ mid-stream”. The learning

curve is steep and the challenges are great. Joan

and David have mastered those challenges and

made enduring contributions to the governance

of SRW.

Chief Executive Martin Kent, his management

team and all the staff of SRW have, for yet another

year, worked professionally and productively to

meet the needs of our customers, our shareholder

and our stakeholders. In amongst the challenges

of a rapidly emptying Glenmaggie, the establish-

ment and implementation of Groundwater and

Surface Water Management Plans, flash floods

in both our eastern and western districts and the

usual round of operational surprises, the staff

made time to organise the celebration of the 75th

anniversary of Lake Glenmaggie Dam and to

conduct open days at Glenmaggie and Lerderderg

weir. Additionally, the usual diverse range of

capital works projects was commenced and/or

completed and we continued to lead the State in

the fields of Groundwater and Streamflow

Management planning. The efforts of the staff

deserve our respect and admiration.

Finally, as a farmer utilising both Groundwater and

the Mitchell River to irrigate our property, I expect

to maintain a long, close and fruitful customer

relationship with SRW. As Chairman - of SRW,

Gippsland Rural Water and the Gippsland

Regional Board of Management of the Rural

Water Corporation - I look back with great

satisfaction and pride on the achievements of the

7

last ten years. Those achievements

could not have taken place without the

dedicated support and involvement of

past and current Board members,

management and staff, our customers,

Government and the communities

which we serve.

Thank you all.

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CHIEF EXECUTIVE’SCHIEF EXECUTIVE’SCHIEF EXECUTIVE’SCHIEF EXECUTIVE’SCHIEF EXECUTIVE’S

REPORTREPORTREPORTREPORTREPORT

I a m p l e a s e d t h a t S R W h a sI a m p l e a s e d t h a t S R W h a s

I a m p l e a s e d t h a t S R W h a sI a m p l e a s e d t h a t S R W h a s

I a m p l e a s e d t h a t S R W h a s

a c h i e v e d m u c h , b u t r e c o g n i s ea c h i e v e d m u c h , b u t r e c o g n i s e

a c h i e v e d m u c h , b u t r e c o g n i s ea c h i e v e d m u c h , b u t r e c o g n i s e

a c h i e v e d m u c h , b u t r e c o g n i s e

t h a t t h e r e i s s t i l l m u c h t o d o .t h a t t h e r e i s s t i l l m u c h t o d o .

t h a t t h e r e i s s t i l l m u c h t o d o .t h a t t h e r e i s s t i l l m u c h t o d o .

t h a t t h e r e i s s t i l l m u c h t o d o .

O u r t h r e e - w a y c h a l l e n g e i s t oO u r t h r e e - w a y c h a l l e n g e i s t o

O u r t h r e e - w a y c h a l l e n g e i s t oO u r t h r e e - w a y c h a l l e n g e i s t o

O u r t h r e e - w a y c h a l l e n g e i s t o

m a i n t a i n o u r p a s tm a i n t a i n o u r p a s t

m a i n t a i n o u r p a s tm a i n t a i n o u r p a s t

m a i n t a i n o u r p a s t

a c h i e v e m e n t s , t o b ea c h i e v e m e n t s , t o b e

a c h i e v e m e n t s , t o b ea c h i e v e m e n t s , t o b e

a c h i e v e m e n t s , t o b e

e n v i r o n m e n t a l l y a n d s o c i a l l ye n v i r o n m e n t a l l y a n d s o c i a l l y

e n v i r o n m e n t a l l y a n d s o c i a l l ye n v i r o n m e n t a l l y a n d s o c i a l l y

e n v i r o n m e n t a l l y a n d s o c i a l l y

r e s p o n s i b l e ; a n d t o w o r k i nr e s p o n s i b l e ; a n d t o w o r k i n

r e s p o n s i b l e ; a n d t o w o r k i nr e s p o n s i b l e ; a n d t o w o r k i n

r e s p o n s i b l e ; a n d t o w o r k i n

p a r t n e r s h i p f o r s u s t a i n a b l ep a r t n e r s h i p f o r s u s t a i n a b l e

p a r t n e r s h i p f o r s u s t a i n a b l ep a r t n e r s h i p f o r s u s t a i n a b l e

p a r t n e r s h i p f o r s u s t a i n a b l e

r e s o u r c e m a n a g e m e n t ,r e s o u r c e m a n a g e m e n t ,

r e s o u r c e m a n a g e m e n t ,r e s o u r c e m a n a g e m e n t ,

r e s o u r c e m a n a g e m e n t ,

r e g i o n a l c o m m u n i t i e s a n dr e g i o n a l c o m m u n i t i e s a n d

r e g i o n a l c o m m u n i t i e s a n dr e g i o n a l c o m m u n i t i e s a n d

r e g i o n a l c o m m u n i t i e s a n d

e n v i r o n m e n t s .e n v i r o n m e n t s .

e n v i r o n m e n t s .e n v i r o n m e n t s .

e n v i r o n m e n t s .

As the SRW Board’s second three-year term

comes to a close, and at the end of a decade of

fundamental change in the rural water sector

arising from the publication and adoption of the

McDonald Report, now is a good time to take

stock of our achievements and to give some

thought to the future direction of the Authority and

the rural water sector in Victoria.

At 30 June 2001, SRW stands poised for a post-

McDonald future. We have achieved the key

McDonald goals - a viable, regionally-based

authority; core businesses which are self funded

and financially sustainable; and close

collaboration and consultation with our

customers. Importantly, we have strengthened

our understanding of our four businesses -

Eastern Irrigation, Headworks, Licensing and

Western Irrigation - and of the social,

environmental and economic priorities and

policies of Government.

This will provide a springboard for SRW in the

coming decade, when we foresee the key

challenges revolving around our core resource -

the water that we harvest and supply, or whose

extraction from rivers or bores we license - and

the breadth of benefit it can bring to rural

communities in southern Victoria. The sustainable

management of that water as both a crucial

business input and an environmental and com-

munity resource can be expected to exercise all

agencies with an interest in it.

I believe that this will require SRW to focus in

three areas:

– maintaining its financial viability - either within

the existing financial framework or in accor-

dance with any future expectations which might

succeed this;

– ensuring and demonstrating that it performs

well against Government and community

environmental and social requirements and

measures; and

– collaborating actively and successfully with

regional stakeholders (especially those directly

charged with other pastoral responsibilities

with respect to catchments and water) to

ensure the sustainability of the resource, the

environment it nurtures and the communities

which depend upon it.

More specifically, this will require our involve-

ment in:

– improvement in both our and our customers’

operational efficiency to create improved

environmental outcomes both on- and off-farm;

Dr Martin Kent, Chief Executive.

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– collaboration with other agencies and stake-

holders, to achieve improved environmental

outcomes whilst maintaining and sustaining the

existing economic and social fabric of our region;

– creating beneficial long term environmental

outcomes for all Victorian rivers and

groundwater aquifers through community

driven and supported local management plans;

– further reform of the water trading system to

explicitly address environmental sustainability

whilst facilitating sustainable regional

development;

– improved customer service and risk

management to support best practice irrigation,

maintain prices at viable levels and achieve

desirable environmental outcomes; and

– continuing collaboration with Government and

all stakeholders in rural water, aimed at building,

sustaining and enhancing mutually beneficial

water resource management frameworks and

regimes which deliver balanced and beneficial

outcomes to all users.

SRW is already deeply committed to and involved

in many of these. We are active participants in

remedial and preventative activities such as the

Gippsland Lakes Rescue Package, and nutrient

and salinity management programs. We have key

management responsibilities as storage

operators and resource managers to monitor and

maintain environmental flows in waterways

across region. We are leaders in the development

of Streamflow and Groundwater Management

Plans aimed at securing the long term

sustainability of our rivers and aquifers.

Increasingly, our future challenges will involve

the twin, but complementary, targets of water

efficiency and good environmental management.

This is already the purpose of elements of the

Gippsland Lakes Rescue Package, which aims to

utilise greater on-farm water efficiency to reduce

nutrient run-off from the Macalister Irrigation

District.

Lake Glenmaggie at the end of the 2000/1

irrigation season.

I am pleased that SRW has achieved

much, but recognise that there is still

much to do. Our three-way challenge

is to maintain our past achievements,

to be environmentally and socially

responsible; and to work in

partnership for sustainable resource

management, regional communities

and environments.

The decade post-McDonald has been

an exciting journey. It is clear that the

next decade looks to be equally

challenging, rewarding and exciting.

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OVERVIEWOVERVIEWOVERVIEWOVERVIEWOVERVIEW

The year in our irrigation districts was

characterised by polarised fortunes for

customers. The Western Irrigation business

experienced good rains and gradual improvement

in its water supply and storage situation during

the year, with demand for irrigation water

generally below expectations as a consequence.

The Macalister Irrigation District, however, found

itself desperately short of water late in the

irrigation season, following a very dry summer

and autumn which resulted in the level of Lake

Glenmaggie falling dramatically after Christmas

2000.

These contrasting outcomes resulted in sales

revenue for the Irrigation businesses being down

for the third year running.

All three irrigation districts fell short of long term

average expectations, with total sales down by

$238,000.

Our Headworks business was also impacted for

the second year by low offtakes from Rosslynne

reservoir by Western Water. This caused a drop

in revenue for that storage system of $142,000.

This was offset, however, by a reduction in the

Authority’s dividend payment to Government,

which dropped from $418,000 to $380,000 for

2000/1 only.

Activity in the Licensing business fluctuated both

above and below expectations. Revenues for

Groundwater and Surface Water diversion were

above forecasts by a total of $134,000 and

operating results improved by $42,000. Demand

for Bore Construction Licences, however, was

down on previous years, although this had no

impact on the overall result for the Licensing

business.

The renewals-based operating result for the

Authority (before dividend payments) was a

surplus of $2.854 million for the year, generated

predominantly by Headworks operations and Rate

of Return charges, and by the receipt of

Government funds to support the substantial

metering program being undertaken in support of

the Groundwater and Streamflow Management

Planning activities currently being undertaken by

SRW.

When reviewing the business results quoted in

this Operations Report and if comparing them with

the financial statements appearing later in the

report, it is important to note the effect of

renewals on our accounts.

Pipelining of the Nuntin Channel in the

Macalister Irrigation District will create

significant resource management benefits, in

the form of water use efficiency and water

savings, by eliminating leaks and other in-

system losses from this section of the

infrastructure. The first stage has been

completed during the 2001 winter shutdown

period. Here, lengths of pipe have been joined

and then mounted on trolleys to facilitate

installation.

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SRW uses a 100 year Renewals Annuity

calculation to determine the annual provision

necessary for replacement of its infrastructure

assets (dams, irrigation channels, pipelines etc.).

It uses traditional depreciation calculations only

for its non-infrastructure assets (buildings,

computers, motor vehicles etc.).

All price setting and budgeting is based on the

Renewals Annuity, which has been accepted by

customers and Government as a fair and

equitable mechanism for allocating the cost of our

long lived infrastructure assets in use.

Renewals Annuities, however, are not an

acceptable basis for calculating this cost for

purposes of preparing published financial

accounts.

In our financial statements appearing later in this

Annual Report, therefore, standard depreciation

calculations have been substituted. The table at

the end of this section illustrates the financial

impact of the substitution for 2000/1 and

preceding years.

RECONCILIATION OF RENEWALS AND DEPRECIATION BASED RESULTSRECONCILIATION OF RENEWALS AND DEPRECIATION BASED RESULTSRECONCILIATION OF RENEWALS AND DEPRECIATION BASED RESULTSRECONCILIATION OF RENEWALS AND DEPRECIATION BASED RESULTSRECONCILIATION OF RENEWALS AND DEPRECIATION BASED RESULTS

2000/12000/12000/12000/12000/1 1999/01999/01999/01999/01999/0 1998/91998/91998/91998/91998/9 1997/81997/81997/81997/81997/8 1996/71996/71996/71996/71996/7$’000$’000$’000$’000$’000 $’000$’000$’000$’000$’000 $’000$’000$’000$’000$’000 $’000$’000$’000$’000$’000 $’000$’000$’000$’000$’000

Net Surplus (Deficit) for year

including Depreciation expense 528 (7,667) 615 1,393 2,745

Add back Depreciation Expense 5,283 4,228 4,084 4,007 3,781

5,811 (3,439) 4,699 5,400 6,526

Deduct Renewals Annuity expense 2,957 3,074 2,811 2,870 2,705

Net Surplus (Deficit) for year

including Renewals Annuity expense 2,854 (6,513) 1,888 2,530 3,821

During 2000/1 SRW has also

conducted a major review of its

Renewals Annuity program and, as

a consequence, will be moving to an

annuity period of 40 years for its

irrigation distribution infrastructure

from 2001/2. This has no effect on

the financial results for 2000/1.

SRW was the recipient of a grant from the Office of

Public Employment under the “ Managing Fairly”

category of the OPE Annual Awards program, for our

EEO program “ Building a ‘Fair Go’ Culture at Work”.

Pictured receiving the grant at the Awards

Presentation Conference are (L to R); Commissioner for

Public Employment Mr Peter Salway, SRW EEO team

members Vicki Lanigan, Noula Antonopoulos and Tim

Purton, and SRW Manager Human Resources, Jim

Watt.

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EASTERN IRRIGATIONEASTERN IRRIGATIONEASTERN IRRIGATIONEASTERN IRRIGATIONEASTERN IRRIGATION

MACALISTERMACALISTERMACALISTERMACALISTERMACALISTER

IRRIGATIONIRRIGATIONIRRIGATIONIRRIGATIONIRRIGATION DISTRICTDISTRICTDISTRICTDISTRICTDISTRICT

FINANCIAL PERFORMANCEFINANCIAL PERFORMANCEFINANCIAL PERFORMANCEFINANCIAL PERFORMANCEFINANCIAL PERFORMANCE

In the latter part of the irrigation

season, commencing in early March

2001, it became necessary to place

stringent restrictions on customers to

protect remaining unused water right.

Initially an overall limit of water right

plus 50% was set but, in April, it was

necessary to cut this back further to

water right only. This caused an

inevitable drop in water sales revenue,

although the final impact was less

than expected. Total sales were 34,232

ML, the highest in the last three years,

although still 14.4% down on the long

term average expectation of 40,000

ML.

This shortfall caused a drop in sales

revenue of $178,000. Total revenues of

$5.569 million were within $7,000 of

budget, but were boosted by high

interest earnings and by the receipt of

$100,000 from the State Government to

fund a channel leak sealing project on

the Main Southern concrete flume, as

part of the Gippsland Lakes Rescue

Package funding.

Lower Operations costs during the

year were more than offset by

increases in Maintenance and other

expenditure. A further $50,000 of non-

capital investment activity was also

charged against revenue. As a result,

total expenditure was $511,000 over

budget (including the non-capital

investment and expenditure of the

Lakes Rescue funds) and the final

deficit of $198,000 was $518,000 worse

than projected.

This restriction was imposed on 3 April but, less

than a week later, a further restriction to only

water right was formally announced by the MCCC

Chairman on 9 April, with effect from 11 April, as

Glenmaggie continued to fall alarmingly and with

no prospect of meaningful inflows. On that date

it held only 18,000 ML.

By 17 April the lake had fallen to less than 12,000

ML and was rapidly approaching empty (up to

9,000 ML cannot be released without pumping,

as it is below the level of the offtake pipes). Three

days later, however, rains finally fell, eventually

resulting in a flash flood event at Cowwarr on the

22nd, when flow rates rose from 3,500 ML/day at

8 am to 21,650 ML/day one hour later and peaked

at 11 am at 24,850 ML/day.

All restrictions were lifted on 23 April and the

season closed on 15 May with no further incident

and no demand for post-season supply. By 30

June Glenmaggie had recovered from its

seasonal low of 10,420 ML (on 22 April) to 32,118

ML - still only 16.9% full.

This extraordinary season posed a number of

questions regarding restriction and allocation

policies and practices. These will be addressed

as planning priorities during 2001/2.

DELIVERY PERFORMANCEDELIVERY PERFORMANCEDELIVERY PERFORMANCEDELIVERY PERFORMANCEDELIVERY PERFORMANCE

Total deliveries for the season of 151,539 ML were

marginally down on the previous year, although

sales deliveries - and, as a consequence, sales

revenue - were higher. The principal difference

between the two years resulted from the extent

to which water right remained unused. In 1999/

2000 over 99% was utilised but last year this fell

to just under 95%.

The level of in-system losses against storage

offtakes (23.3% as against only 20.8% the previous

year) has raised significant concerns about the

accuracy of measurement of offtakes at Lake

Glenmaggie, following recent valve replacement

works. There is a concern that actual volumes

released are lower than the measured totals and

this possibility is being examined by technical

experts. It had been expected that in-system

delivery performance should have been at least

maintained in 2000/1, as the district was operated

to achieve maximum efficiency in this respect.

OPERATIONAL PERFORMANCEOPERATIONAL PERFORMANCEOPERATIONAL PERFORMANCEOPERATIONAL PERFORMANCEOPERATIONAL PERFORMANCE

A year of contrasting fortunes began quietly with

very low early season demand (in contrast to the

previous year, when 4,660 ML were delivered prior

to the official commencement of the irrigation

period).

At this stage inflows to Lake Glenmaggie were

excellent and, in mid-September, the Lake was full

and the dam began spilling. As a consequence, and

in accordance with normal practice, off-quota

supply was offered to customers. Off quota water

supply is paid for at the normal rate but is not

deducted from the customer’s water right.

This situation lasted until late November. Only

three days later the onset of dry conditions had

resulted in irrigation demand across the district

reaching full capacity. It remained that way

throughout December and January. Through

December Glenmaggie dropped from full to only

70%. Deliveries for the month totalled 38,620 ML

- 55% higher than the 12 year average for this

month. It was necessary also to begin calling up

supply from our share of the Thomson dam

storage to supplement deliveries.

Heavy rains in the last week of January 2001 gave

some hope that the demand pressures would

ease. By early March, however, the Macalister

Customer Consultative Committee in

collaboration with management determined that

some form of restriction could become necessary.

Letters were sent out to high use customers

during March warning of the possibility that

supply could be limited to water right plus sales

of 50%.

A panoramic view of a typical channel section

and collection of offtake and regulating

structures in the Macalister Irrigation District.

Maffra weir is a vital

regulating structure which

controls the offtake of water

from the lower Macalister

River into the Main Eastern

Channel of the MID.

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DescriptionDescriptionDescriptionDescriptionDescription 2000/12000/12000/12000/12000/1 1999/01999/01999/01999/01999/0 1998/91998/91998/91998/91998/9MLMLMLMLML MLMLMLMLML MLMLMLMLML

Water brought intothe system

..................... 224,308 223,368 232,995

Water rightsand entitlementsdelivered

........................ 117,307 122,489 112,797

Seasonal salesdelivered

........................ 34,232 31,629 32,353

%%%%% %%%%% %%%%%Water delivered tocustomers ...................... 68.6 69.6 65.4

Water lost within thedelivery system ............ 23.3 20.8 25.3

Water passed asoutfalls from system .... 8.1 9.6 9.3

MAINTENANCE PERFORMANCEMAINTENANCE PERFORMANCEMAINTENANCE PERFORMANCEMAINTENANCE PERFORMANCEMAINTENANCE PERFORMANCE

Recurrent maintenance in the MID is now focused

increasingly on proactive rather than reactive

activity, and new initiatives were introduced or

further developed during 2000/1 to ensure that we

are able to maintain this direction.

The A s s e t I n s p e c t i o n P r o g r a m began in winter

2000 and is estimated to take another two years.

It comprises the physical assessment by trained

staff of every asset that forms part of the irrigation

system. Its purpose is to determine the quality and

remaining life of the system infrastructure, to

determine a current condition rating for all

component elements and to identify preventative

maintenance. This work will also enable the

further refinement of future renewals annuity

requirements for the district.

The C r i t i c a l A s s e t s P r o g r a m has been developed

during 2000/1 to begin in 2001/2, and will identify

and correct components of the system which may

be vulnerable to failure and difficult to rectify

quickly. It aims to further reduce the risk of a major

interruption to supply. Major supply channels

located in confined and logistically prohibitive

terrain are the first targets. New or improved

accesses will be created to allow regular

surveillance, remedial works and practical

contingency procedures. An initial annual budget

of $200,000 for the next five years has been

allocated to this initiative.

We have continued to address the ever growing

and difficult problem of E u r o p e a n C a r p E r o s i o n

in our earthen channels. Repairs were made

during the year to sections where damage was

most prolific. The exorbitant cost of such works,

however, has prompted a study into eliminating

further problems by preventing the fishes’ initial

entry into the system. Preventative barriers are

in the planning stages and are expected to be

introduced in the near future.

As part of our E n v i r o n m e n t a l a n d C o m m u n i t y

A w a r e n e s s program the following projects were

undertaken throughout the year, supporting

Landcare Groups, Quality Assurance schemes

and pollution control:

– Developing parts of the Central Gippsland No.

3 Drain reserve for the planting of many

thousands of non-invasive native trees, in

support of the K i l m a n y L a n d c a r e G r o u p and

involving extensive earth moving, fencing and

drainage works.

– Co-operation and support to milk companies

in their quality assurance schemes in relation

to SRW herbicide usage

– Monitoring drainage water to detect

undesirable levels of chemical residues as

part of our aquatic weed control program

– Provision of labour and mechanical plant to

assist T a r g e t 1 0 Pasture Development Group

field studies

– Participation in nutrient reduction and water

reuse programs

– Investigation into submerged

aquatic weed control

alternatives and

– Staff training in the safe storage,

transport and use of

environmentally hazardous

substances.

A v e r y s u c c e s s f u lA v e r y s u c c e s s f u l

A v e r y s u c c e s s f u lA v e r y s u c c e s s f u l

A v e r y s u c c e s s f u l

m a i n t e n a n c e s e a s o n w a sm a i n t e n a n c e s e a s o n w a s

m a i n t e n a n c e s e a s o n w a sm a i n t e n a n c e s e a s o n w a s

m a i n t e n a n c e s e a s o n w a s

p r o l o n g e d f o r s o m e f o u rp r o l o n g e d f o r s o m e f o u r

p r o l o n g e d f o r s o m e f o u rp r o l o n g e d f o r s o m e f o u r

p r o l o n g e d f o r s o m e f o u r

m o n t h s b y e a r l y a n d l a t e r a i n s .m o n t h s b y e a r l y a n d l a t e r a i n s .

m o n t h s b y e a r l y a n d l a t e r a i n s .m o n t h s b y e a r l y a n d l a t e r a i n s .

m o n t h s b y e a r l y a n d l a t e r a i n s .

T h i s e n a b l e d e a r l y c o m p l e t i o nT h i s e n a b l e d e a r l y c o m p l e t i o n

T h i s e n a b l e d e a r l y c o m p l e t i o nT h i s e n a b l e d e a r l y c o m p l e t i o n

T h i s e n a b l e d e a r l y c o m p l e t i o n

o f t h e 2 0 0 0 / 1 p r o g r a m a n do f t h e 2 0 0 0 / 1 p r o g r a m a n d

o f t h e 2 0 0 0 / 1 p r o g r a m a n do f t h e 2 0 0 0 / 1 p r o g r a m a n d

o f t h e 2 0 0 0 / 1 p r o g r a m a n d

e n a b l e d e x t r a w o r k s t o b ee n a b l e d e x t r a w o r k s t o b e

e n a b l e d e x t r a w o r k s t o b ee n a b l e d e x t r a w o r k s t o b e

e n a b l e d e x t r a w o r k s t o b e

b r o u g h t f o r w a r d . S o m e o f t h eb r o u g h t f o r w a r d . S o m e o f t h e

b r o u g h t f o r w a r d . S o m e o f t h eb r o u g h t f o r w a r d . S o m e o f t h e

b r o u g h t f o r w a r d . S o m e o f t h e

m o r e n o t a b l e a c h i e v e m e n t sm o r e n o t a b l e a c h i e v e m e n t s

m o r e n o t a b l e a c h i e v e m e n t sm o r e n o t a b l e a c h i e v e m e n t s

m o r e n o t a b l e a c h i e v e m e n t s

i n c l u d e d :i n c l u d e d :

i n c l u d e d :i n c l u d e d :

i n c l u d e d :

··

··

·

A c o m p r e h e n s i v eA c o m p r e h e n s i v e

A c o m p r e h e n s i v eA c o m p r e h e n s i v e

A c o m p r e h e n s i v e

t e c h n i c a l r e v i e w o f t h et e c h n i c a l r e v i e w o f t h e

t e c h n i c a l r e v i e w o f t h et e c h n i c a l r e v i e w o f t h e

t e c h n i c a l r e v i e w o f t h e

M I D m a i n t e n a n c e r e g i m e .M I D m a i n t e n a n c e r e g i m e .

M I D m a i n t e n a n c e r e g i m e .M I D m a i n t e n a n c e r e g i m e .

M I D m a i n t e n a n c e r e g i m e .

··

··

·

C o m p l e t i o n o f t h e M a i nC o m p l e t i o n o f t h e M a i n

C o m p l e t i o n o f t h e M a i nC o m p l e t i o n o f t h e M a i n

C o m p l e t i o n o f t h e M a i n

S o u t h e r n F l u m e j o i n tS o u t h e r n F l u m e j o i n t

S o u t h e r n F l u m e j o i n tS o u t h e r n F l u m e j o i n t

S o u t h e r n F l u m e j o i n t

r e h a b i l i t a t i o n p r o j e c t .r e h a b i l i t a t i o n p r o j e c t .

r e h a b i l i t a t i o n p r o j e c t .r e h a b i l i t a t i o n p r o j e c t .

r e h a b i l i t a t i o n p r o j e c t .

··

··

·

C o m p l e t i o n o f p h a s e 1 o f aC o m p l e t i o n o f p h a s e 1 o f a

C o m p l e t i o n o f p h a s e 1 o f aC o m p l e t i o n o f p h a s e 1 o f a

C o m p l e t i o n o f p h a s e 1 o f a

r o a d c r o s s i n g s u p g r a d er o a d c r o s s i n g s u p g r a d e

r o a d c r o s s i n g s u p g r a d er o a d c r o s s i n g s u p g r a d e

r o a d c r o s s i n g s u p g r a d e

a n d p r o t e c t i o n p r o g r a m i na n d p r o t e c t i o n p r o g r a m i n

a n d p r o t e c t i o n p r o g r a m i na n d p r o t e c t i o n p r o g r a m i n

a n d p r o t e c t i o n p r o g r a m i n

c o n j u n c t i o n w i t h t h ec o n j u n c t i o n w i t h t h e

c o n j u n c t i o n w i t h t h ec o n j u n c t i o n w i t h t h e

c o n j u n c t i o n w i t h t h e

W e l l i n g t o n S h i r e .W e l l i n g t o n S h i r e .

W e l l i n g t o n S h i r e .W e l l i n g t o n S h i r e .

W e l l i n g t o n S h i r e .

··

··

·

E x t e n s i v e e r o s i o n c o n t r o lE x t e n s i v e e r o s i o n c o n t r o l

E x t e n s i v e e r o s i o n c o n t r o lE x t e n s i v e e r o s i o n c o n t r o l

E x t e n s i v e e r o s i o n c o n t r o l

i n b o t h c h a n n e l s a n di n b o t h c h a n n e l s a n d

i n b o t h c h a n n e l s a n di n b o t h c h a n n e l s a n d

i n b o t h c h a n n e l s a n d

d r a i n s a n dd r a i n s a n d

d r a i n s a n dd r a i n s a n d

d r a i n s a n d

··

··

·

S i g n i f i c a n t p r o g r e s s i n t h eS i g n i f i c a n t p r o g r e s s i n t h e

S i g n i f i c a n t p r o g r e s s i n t h eS i g n i f i c a n t p r o g r e s s i n t h e

S i g n i f i c a n t p r o g r e s s i n t h e

r e g u l a t o r a u t o m a t i o nr e g u l a t o r a u t o m a t i o n

r e g u l a t o r a u t o m a t i o nr e g u l a t o r a u t o m a t i o n

r e g u l a t o r a u t o m a t i o n

p r o g r a m , w i t h n i n e m a j o rp r o g r a m , w i t h n i n e m a j o r

p r o g r a m , w i t h n i n e m a j o rp r o g r a m , w i t h n i n e m a j o r

p r o g r a m , w i t h n i n e m a j o r

s i t e s p r e p a r e d f o rs i t e s p r e p a r e d f o r

s i t e s p r e p a r e d f o rs i t e s p r e p a r e d f o r

s i t e s p r e p a r e d f o r

c o n v e r s i o n a n d e l e v e nc o n v e r s i o n a n d e l e v e n

c o n v e r s i o n a n d e l e v e nc o n v e r s i o n a n d e l e v e n

c o n v e r s i o n a n d e l e v e n

c r i t i c a l l o c a t i o n s f i t t e d w i t hc r i t i c a l l o c a t i o n s f i t t e d w i t h

c r i t i c a l l o c a t i o n s f i t t e d w i t hc r i t i c a l l o c a t i o n s f i t t e d w i t h

c r i t i c a l l o c a t i o n s f i t t e d w i t h

o v e r f l o w e s c a p e s .o v e r f l o w e s c a p e s .

o v e r f l o w e s c a p e s .o v e r f l o w e s c a p e s .

o v e r f l o w e s c a p e s .

MID Operations Supervisor Ken Bates and

Planner David Rodaughan share a lighter

moment amidst the bustle of another

demanding irrigation season.

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14

WESTERN IRRIGATIONWESTERN IRRIGATIONWESTERN IRRIGATIONWESTERN IRRIGATIONWESTERN IRRIGATION

BACCHUS MARSHBACCHUS MARSHBACCHUS MARSHBACCHUS MARSHBACCHUS MARSH

IRRIGATIONIRRIGATIONIRRIGATIONIRRIGATIONIRRIGATION DISTRICTDISTRICTDISTRICTDISTRICTDISTRICT


A 7% revenue shortfall, caused mainly by sales

$57,000 below budget, resulted in the BMID

posting a $50,000 operating shortfall on revenue

turnover of $541,000, against a budgeted

expectation of a $3,000 surplus. Expenditure was

contained within $13,000 of estimates, mainly due

to economies in Operations costs.

Prospects for the future are brighter for the

district however, following the transfer of a key

water entitlement which has been unused for

more than three years to a new owner at the end

of the year. Whilst this will not increase water

right revenue, it raises the possibility of additional

sales.


At the start of the year the storages in the

Werribee system held 33% of capacity. Good

winter and spring rains quickly filled them to 80%

and, by the end of October, both Melton and Pykes

Creek reservoirs were spilling. This allowed an

initial allocation of water right plus 50% sales to

be made to BMID irrigators.

Demand for water through the summer months

was the highest for three years. Heavy rains in

autumn, however, resulted in greatly reduced

demand for the remainder of the season.

The performance target for 95% of customers to

receive water on or before the requested day was

exceeded, with 96.2% of orders actually delivered

on time.

Average delivery volumes increased on previous

years, with 2.3 Ml delivered per order compared

to the long term norm of 1.9 Ml.

The early announcement of a high allocation, and

the low late season demand for water, resulted

in a decrease in water trading during 2000/1. Only

18 temporary transfers were processed within the

BMID totalling 1,049 ML, compared to 58 transfers

in 1999/2000.

DELIVERY PERFORMANCEDELIVERY PERFORMANCEDELIVERY PERFORMANCEDELIVERY PERFORMANCEDELIVERY PERFORMANCE

Total water delivered for 2000/1 was 3,450 Ml, 18%

higher than the previous year’s 2,919 ML, but still

19% down on the 10-year average of 4,260 Ml.

The improvement derived from increases in sales

and deliveries outside the district. Sales of 600

ML were more than double the 1999/2000 total

(although again significantly down on the long

term average of 980 Ml on which budgets and

prices are set). Outside district deliveries of 342

Ml represented a 50% rise on the previous year.

Delivery efficiency within the system improved

markedly in 2000/1 to 77%. This was achieved

through significant reductions in outfall wastage

and improved efficiency within the system.

Although total outfalls for the season were 377

ML, this represents a better than 50%

improvement on two years ago.

D e m a n d f o r w a t e r t h r o u g h t h eD e m a n d f o r w a t e r t h r o u g h t h e

D e m a n d f o r w a t e r t h r o u g h t h eD e m a n d f o r w a t e r t h r o u g h t h e

D e m a n d f o r w a t e r t h r o u g h t h e

s u m m e r m o n t h s w a s t h es u m m e r m o n t h s w a s t h e

s u m m e r m o n t h s w a s t h es u m m e r m o n t h s w a s t h e

s u m m e r m o n t h s w a s t h e

h i g h e s t f o r t h r e e y e a r s . H e a v yh i g h e s t f o r t h r e e y e a r s . H e a v y

h i g h e s t f o r t h r e e y e a r s . H e a v yh i g h e s t f o r t h r e e y e a r s . H e a v y

h i g h e s t f o r t h r e e y e a r s . H e a v y

r a i n s i n a u t u m n , h o w e v e r ,r a i n s i n a u t u m n , h o w e v e r ,

r a i n s i n a u t u m n , h o w e v e r ,r a i n s i n a u t u m n , h o w e v e r ,

r a i n s i n a u t u m n , h o w e v e r ,

r e s u l t e d i n g r e a t l y r e d u c e dr e s u l t e d i n g r e a t l y r e d u c e d

r e s u l t e d i n g r e a t l y r e d u c e dr e s u l t e d i n g r e a t l y r e d u c e d

r e s u l t e d i n g r e a t l y r e d u c e d

d e m a n d f o r t h e r e m a i n d e r o fd e m a n d f o r t h e r e m a i n d e r o f

d e m a n d f o r t h e r e m a i n d e r o fd e m a n d f o r t h e r e m a i n d e r o f

d e m a n d f o r t h e r e m a i n d e r o f

t h e s e a s o n .t h e s e a s o n .

t h e s e a s o n .t h e s e a s o n .

t h e s e a s o n .

Economical and effective spray irrigation of

vegetables in the WID.

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15



..................... 4,481 4,034 3,908


........................ 2,508 2,469 2,384


........................ 600 232 108




SYSTEM MAINTENANCE:SYSTEM MAINTENANCE:SYSTEM MAINTENANCE:SYSTEM MAINTENANCE:SYSTEM MAINTENANCE:

The main areas of works for 2000/1 included;

– flow meter outlet repairs;

– channel patching and sealing;

– structure maintenance; and

– channel desilting.

As in previous years it was necessary to carry

out repair maintenance on valve and flow meter

outlets. A total of 19 meter outlets had repairs

carried out on various components.

Two lengths of butyl rubber liner were installed

on the main channel in sections of badly cracked

and leaking channel. These rubber liners have

been used to great effect over the past three

years to seal leaks. Spot sealing was also

undertaken, with 14 separate leaks repaired.

A range of structural and general maintenance

was carried out through the year, notably to

address hazards identified during the Public

Safety Risk Review program undertaken during

15

Following high rainfall and flood damage in November 2000, urgent repairs were necessary at Werribee weir.

Here replacement rock gabions are being placed on the northern bank of the river immediately below the weir wall.

the year. This entailed repairing holes

in security fencing, repair or addition

of handrails, prevention of

unauthorised access and rectification

of a range of potential hazards to the

public. A key task was the

construction of 1200 metres of

security fencing on the main channel

through the Bacchus Marsh township.

As part of the general works program

the old mild steel off-take door, which

controls supply from Bacchus Marsh

weir into the Main Channel, was

replaced with a more durable and

longer lasting stainless steel door.

The entire 14 kilometre length of the

concrete lined Main Channel was de-

silted during the year by SRW staff.

Contractors with specialist cleaning

equipment were engaged to de-silt 4

culverts and siphons.

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16

WERRIBEE IRRIGATION DISTRICTWERRIBEE IRRIGATION DISTRICTWERRIBEE IRRIGATION DISTRICTWERRIBEE IRRIGATION DISTRICTWERRIBEE IRRIGATION DISTRICT


Low sales were the principal cause of a $42,000

revenue shortfall (2.7% on turnover of $1.535

million) for the year. All direct cost expenditure

categories exceeded budget and, with the

inclusion of $39,000 of non-capital investment

charged against revenue, total expenditure was

$1.571 million, $98,000 over the budget of $1.473

million. These outcomes together created a

$78,000 operating shortfall for the year, exactly

$140,000 worse than projected.

OPERATIONAL PERFORMANCE:OPERATIONAL PERFORMANCE:OPERATIONAL PERFORMANCE:OPERATIONAL PERFORMANCE:OPERATIONAL PERFORMANCE:

Low storage levels (33% full) in the Werribee

system at the start of July resulted in an initial

allocation of 100% of water right within the WID.

Good rainfall throughout the catchment in

October and November saw both Pykes Creek

and Melton reservoirs spill with minor flooding

occurring downstream of Melton Reservoir. This

enabled an increase in the allocation to water

right plus 50%.

Significant rainfall events in March and April saw

the system shut down on each occasion for a

week due to lack of demand. The allocation to

customers was also lifted to water right plus 100%

late in the season.

Despite the eventual abundance of water, early

season conditions posed the prospect of low

seasonal allocations, as was the case in 1999/

2000. This prompted irrigators into the market,

with brisk water trading undertaken early in the

season. As the year progressed and allocations

were raised, trading activity reduced significantly.

By year end 50 temporary transfers had been

processed for a total of 1,535 Ml - 16% of total

water right. This was well short of the 140

applications to transfer 2,310 ML received for the

previous season. There were two permanent

transfers during the season, involving a total

volume of 46 ML.

Over the season 6,920 orders were delivered in

the district, around 200 less than the previous

year. Average irrigation volumes were up slightly,

with 1.5 ML per order delivered compared to the

1999/2000 average of 1.4 ML.

The performance target of 95% for customers to

receive water on or before requested day, was

achieved, with 96.8% of all orders supplied within

the target period.

SYSTEM PERFORMANCE:SYSTEM PERFORMANCE:SYSTEM PERFORMANCE:SYSTEM PERFORMANCE:SYSTEM PERFORMANCE:

A total volume of 10,458 ML was delivered in the

WID during the 2000/1 season, surpassing last

year’s 10,213 Ml, but still well short of budgeted

expectations of 12,471 ML. The total for the year

included 2,013 ML of sales, up 80% on last year

but similarly almost 20% below the 10 year

average of 2,500 ML.

Delivery efficiency within the system was 81% in

2000/1 compared with 79.5 % in 1999/2000. Outfall

losses remained constant, but in-system losses

of 16.9% represented an improvement over the

previous two years.

O v e r t h e s e a s o n 6 , 9 2 0 o r d e r sO v e r t h e s e a s o n 6 , 9 2 0 o r d e r s

O v e r t h e s e a s o n 6 , 9 2 0 o r d e r sO v e r t h e s e a s o n 6 , 9 2 0 o r d e r s

O v e r t h e s e a s o n 6 , 9 2 0 o r d e r s

w e r e d e l i v e r e d i n t h e d i s t r i c t ,w e r e d e l i v e r e d i n t h e d i s t r i c t ,

w e r e d e l i v e r e d i n t h e d i s t r i c t ,w e r e d e l i v e r e d i n t h e d i s t r i c t ,

w e r e d e l i v e r e d i n t h e d i s t r i c t ,

a r o u n d 2 0 0 l e s s t h a n t h ea r o u n d 2 0 0 l e s s t h a n t h e

a r o u n d 2 0 0 l e s s t h a n t h ea r o u n d 2 0 0 l e s s t h a n t h e

a r o u n d 2 0 0 l e s s t h a n t h e

p r e v i o u s y e a r . A v e r a g ep r e v i o u s y e a r . A v e r a g e

p r e v i o u s y e a r . A v e r a g ep r e v i o u s y e a r . A v e r a g e

p r e v i o u s y e a r . A v e r a g e

i r r i g a t i o n v o l u m e s w e r e u pi r r i g a t i o n v o l u m e s w e r e u p

i r r i g a t i o n v o l u m e s w e r e u pi r r i g a t i o n v o l u m e s w e r e u p

i r r i g a t i o n v o l u m e s w e r e u p

s l i g h t l y , w i t h 1 . 5 M L p e r o r d e rs l i g h t l y , w i t h 1 . 5 M L p e r o r d e r

s l i g h t l y , w i t h 1 . 5 M L p e r o r d e rs l i g h t l y , w i t h 1 . 5 M L p e r o r d e r

s l i g h t l y , w i t h 1 . 5 M L p e r o r d e r

d e l i v e r e d c o m p a r e d t o t h ed e l i v e r e d c o m p a r e d t o t h e

d e l i v e r e d c o m p a r e d t o t h ed e l i v e r e d c o m p a r e d t o t h e

d e l i v e r e d c o m p a r e d t o t h e

1 9 9 9 / 2 0 0 0 a v e r a g e o f 1 . 4 M L .1 9 9 9 / 2 0 0 0 a v e r a g e o f 1 . 4 M L .

1 9 9 9 / 2 0 0 0 a v e r a g e o f 1 . 4 M L .1 9 9 9 / 2 0 0 0 a v e r a g e o f 1 . 4 M L .

1 9 9 9 / 2 0 0 0 a v e r a g e o f 1 . 4 M L .

T h e p e r f o r m a n c e t a r g e t o f 9 5 %T h e p e r f o r m a n c e t a r g e t o f 9 5 %

T h e p e r f o r m a n c e t a r g e t o f 9 5 %T h e p e r f o r m a n c e t a r g e t o f 9 5 %

T h e p e r f o r m a n c e t a r g e t o f 9 5 %

f o r c u s t o m e r s t o r e c e i v e w a t e rf o r c u s t o m e r s t o r e c e i v e w a t e r

f o r c u s t o m e r s t o r e c e i v e w a t e rf o r c u s t o m e r s t o r e c e i v e w a t e r

f o r c u s t o m e r s t o r e c e i v e w a t e r

o n o r b e f o r e r e q u e s t e d d a y ,o n o r b e f o r e r e q u e s t e d d a y ,

o n o r b e f o r e r e q u e s t e d d a y ,o n o r b e f o r e r e q u e s t e d d a y ,

o n o r b e f o r e r e q u e s t e d d a y ,

w a s a c h i e v e d , w i t h 9 6 . 8 % o f a l lw a s a c h i e v e d , w i t h 9 6 . 8 % o f a l l

w a s a c h i e v e d , w i t h 9 6 . 8 % o f a l lw a s a c h i e v e d , w i t h 9 6 . 8 % o f a l l

w a s a c h i e v e d , w i t h 9 6 . 8 % o f a l l

o r d e r s s u p p l i e d w i t h i n t h eo r d e r s s u p p l i e d w i t h i n t h e

o r d e r s s u p p l i e d w i t h i n t h eo r d e r s s u p p l i e d w i t h i n t h e

o r d e r s s u p p l i e d w i t h i n t h e

t a r g e t p e r i o d .t a r g e t p e r i o d .

t a r g e t p e r i o d .t a r g e t p e r i o d .

t a r g e t p e r i o d .

Werribee Irrigation District farmer Romano Mason installing

a line of spray irrigation heads into his newly acquired

vegetable property in Werribee South.

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..................... 12,906 12,842 11,330


........................ 8,445 9,094 8,240


........................ 2,013 1,119 768




SYSTEM MAINTENANCE:SYSTEM MAINTENANCE:SYSTEM MAINTENANCE:SYSTEM MAINTENANCE:SYSTEM MAINTENANCE:

A maintenance priority for the year was weed

control on channel and drain reserves. Other key

maintenance activities included extensive

drainage de-silting works, channel patching and

channel de-silting.

District drains were filled to capacity for a number

of days as a result of heavy rains. Additional de-

silting works were undertaken by SRW staff, in

order to maintain flow capacities, along a total of

13 kilometres of drainage channels. Contractors

were engaged to de-silt an additional 400 metres

of larger drains.

Channel patching was undertaken during the

winter irrigation period. A total of 32 separate

leaks were repaired, ranging from small cracks

in concrete channel lining to replacement of

panels and capping of channels where supply

constraints were identified. A trial of a liquid

sealant product sprayed onto the concrete was

encouraging.

Contractors slashed 12.5 kilometres of wild

aniseed which had infested channel and drain

banks, using an excavator with a slashing

attachment to reach difficult access locations.

Herbicide was then applied to control further

regrowth.

General weed control involved spraying 180

kilometres of channel banks and 106 kilometres

of drainage channels with a non-residual

herbicide to control weeds and grasses in and

around system infrastructure.

At the beginning of the year the channel-desilting

program cleaned 50 kilometres of concrete lined

channels over a 5 week period. This represented

all of the open channel distribution system.

Desilting was undertaken using both SRW and

hired small plant. Specialist cleaning contractors

were engaged to de-silt 12 culverts and siphons

throughout the district.

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18

LICENSINGLICENSINGLICENSINGLICENSINGLICENSING

FINANCIAL PERFORMANCEFINANCIAL PERFORMANCEFINANCIAL PERFORMANCEFINANCIAL PERFORMANCEFINANCIAL PERFORMANCEAbove average revenues for both Surface Water

and Groundwater Licensing functions resulted in

a better than budgeted result for the Licensing

business. Bore Construction Licensing activity

was below previous years as demand for stock

and domestic bores fell, especially in the south

west. The fall in revenue from this activity, was

matched by a corresponding drop in expenditure,

so that there was no bottom line impact on results.

Overall the Licensing business earned revenue

of $2.501 million against budget of $2.445 million.

Against this was booked total expenditure of

$2.663 million, resulting in an operating shortfall

of $162,000. This was accounted for entirely by

the Farm Dam Licensing function, for which no

fees are currently set. The core functions of the

business broke exactly even on the year.

OPERATIONAL PERFORMANCE -OPERATIONAL PERFORMANCE -OPERATIONAL PERFORMANCE -OPERATIONAL PERFORMANCE -OPERATIONAL PERFORMANCE -

GROUNDWATERGROUNDWATERGROUNDWATERGROUNDWATERGROUNDWATERAs indicated, a key feature of the year was the

reduction in bore construction activity and

licensing of new bores. In 1999/2000 1,334 Bore

Construction licences were issued, including 870

for stock and domestic bores of which 755 were

located in south west Victoria. This year the total

fell to 976 (down 27%), including only 571 stock

and domestic bores of which 462 were in the

south west, a drop of 39%.

In the south east of the state there was continuing

interest in Groundwater as an alternative water

source, although the establishment of Ground-

water Management Areas (GMAs) and the

imposition of Permissible Annual Volumes (PAVs)

in them has reduced potential access for some

customers where the aquifer concerned has been

defined as fully/overcommitted.

Declining water levels and the impacts of lack of

recharge and higher demand were key concerns

during the year. A roster was implemented in the

Moe GMA in order to overcome the problem.

Metering of bores, in connection with the

development of Groundwater Management Plans,

was completed in the Sale, Denison, Wy Yung,

Lang Lang and Wandin Yallock GMAs and

commenced in Seacombe and Rosedale.

Groundwater sustainability continues to be the

major concern in the south west. Good rains in

November and April assisted farmers to survive

but were insufficient to recharge some aquifers.

Metering of bores was completed in the Condah,

Warrion, Nullawarre and Yangery GMAS and

Groundwater Management Plans have been

completed for Nullawarre and Yangery. The

Groundwater Management Planning process

continues in Warrion, and will be commenced for

Condah and Bungaree in the near future.

Compliance surveys were completed in the

Bungaree, Glenormiston, Colangulac, Heywood,

and Cut Paw Paw GMAs, totalling in excess of

250 licences.

A k e y f e a t u r e o f t h e y e a r w a sA k e y f e a t u r e o f t h e y e a r w a s

A k e y f e a t u r e o f t h e y e a r w a sA k e y f e a t u r e o f t h e y e a r w a s

A k e y f e a t u r e o f t h e y e a r w a s

t h e r e d u c t i o n i n b o r et h e r e d u c t i o n i n b o r e

t h e r e d u c t i o n i n b o r et h e r e d u c t i o n i n b o r e

t h e r e d u c t i o n i n b o r e

c o n s t r u c t i o n a c t i v i t y a n dc o n s t r u c t i o n a c t i v i t y a n d

c o n s t r u c t i o n a c t i v i t y a n dc o n s t r u c t i o n a c t i v i t y a n d

c o n s t r u c t i o n a c t i v i t y a n d

l i c e n s i n g o f n e w b o r e s . I nl i c e n s i n g o f n e w b o r e s . I n

l i c e n s i n g o f n e w b o r e s . I nl i c e n s i n g o f n e w b o r e s . I n

l i c e n s i n g o f n e w b o r e s . I n

1 9 9 9 / 2 0 0 0 1 , 3 3 4 B o r e1 9 9 9 / 2 0 0 0 1 , 3 3 4 B o r e

1 9 9 9 / 2 0 0 0 1 , 3 3 4 B o r e1 9 9 9 / 2 0 0 0 1 , 3 3 4 B o r e

1 9 9 9 / 2 0 0 0 1 , 3 3 4 B o r e

C o n s t r u c t i o n l i c e n c e s w e r eC o n s t r u c t i o n l i c e n c e s w e r e

C o n s t r u c t i o n l i c e n c e s w e r eC o n s t r u c t i o n l i c e n c e s w e r e

C o n s t r u c t i o n l i c e n c e s w e r e

i s s u e d , i n c l u d i n g 8 7 0 f o r s t o c ki s s u e d , i n c l u d i n g 8 7 0 f o r s t o c k

i s s u e d , i n c l u d i n g 8 7 0 f o r s t o c ki s s u e d , i n c l u d i n g 8 7 0 f o r s t o c k

i s s u e d , i n c l u d i n g 8 7 0 f o r s t o c k

a n d d o m e s t i c b o r e s o f w h i c ha n d d o m e s t i c b o r e s o f w h i c h

a n d d o m e s t i c b o r e s o f w h i c ha n d d o m e s t i c b o r e s o f w h i c h

a n d d o m e s t i c b o r e s o f w h i c h

7 5 5 w e r e l o c a t e d i n s o u t h w e s t7 5 5 w e r e l o c a t e d i n s o u t h w e s t

7 5 5 w e r e l o c a t e d i n s o u t h w e s t7 5 5 w e r e l o c a t e d i n s o u t h w e s t

7 5 5 w e r e l o c a t e d i n s o u t h w e s t

V i c t o r i a . T h i s y e a r t h e t o t a l f e l lV i c t o r i a . T h i s y e a r t h e t o t a l f e l l

V i c t o r i a . T h i s y e a r t h e t o t a l f e l lV i c t o r i a . T h i s y e a r t h e t o t a l f e l l

V i c t o r i a . T h i s y e a r t h e t o t a l f e l l

t o 9 7 6 ( d o w n 2 7 % ) , i n c l u d i n gt o 9 7 6 ( d o w n 2 7 % ) , i n c l u d i n g

t o 9 7 6 ( d o w n 2 7 % ) , i n c l u d i n gt o 9 7 6 ( d o w n 2 7 % ) , i n c l u d i n g

t o 9 7 6 ( d o w n 2 7 % ) , i n c l u d i n g

o n l y 5 7 1 s t o c k a n d d o m e s t i co n l y 5 7 1 s t o c k a n d d o m e s t i c

o n l y 5 7 1 s t o c k a n d d o m e s t i co n l y 5 7 1 s t o c k a n d d o m e s t i c

o n l y 5 7 1 s t o c k a n d d o m e s t i c

b o r e s o f w h i c h 4 6 2 w e r e i n t h eb o r e s o f w h i c h 4 6 2 w e r e i n t h e

b o r e s o f w h i c h 4 6 2 w e r e i n t h eb o r e s o f w h i c h 4 6 2 w e r e i n t h e

b o r e s o f w h i c h 4 6 2 w e r e i n t h e

s o u t h w e s t , a d r o p o f 3 9 % .s o u t h w e s t , a d r o p o f 3 9 % .

s o u t h w e s t , a d r o p o f 3 9 % .s o u t h w e s t , a d r o p o f 3 9 % .

s o u t h w e s t , a d r o p o f 3 9 % .

High flows in the Thomson River at Cowwarr Weir. This is the

old course of the river which diverges above the weir from

Rainbow Creek, the new course. Management and

maintenance of environmental flows on streams such as this

are ongoing challenges for SRW.

The Minister for Environment and Conservation has now

accepted the recommendations of the Farm Dams Review.

SRW made significant inputs to the Review and will play a

key role in 2001/2 and beyond in the implementation of the

recommendations.

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OPERATIONAL PERFORMANCE -OPERATIONAL PERFORMANCE -OPERATIONAL PERFORMANCE -OPERATIONAL PERFORMANCE -OPERATIONAL PERFORMANCE -

SURFACE WATERSURFACE WATERSURFACE WATERSURFACE WATERSURFACE WATERAcross our region Licensing staff were involved

in compliance and pre-metering surveys

throughout the year.

South east Victoria experienced another very dry

year with below average rainfall. Good rains fell

in Spring, but there was little follow up rain during

the season.

By mid December 2000, irrigation restrictions

were in place on the Albert, Tarra River and

Bruthen Creek systems.

Irrigation demand on the Morwell River was low

this year compared to 1999/2000. Nonetheless

rostering was introduced from mid-January to

mid-March. Middle Creek and Billy’s Creek

stopped flowing between the end of February and

mid-March. Flows in Traralgon Creek were low

from early January.

By March 2001, every river system in South Gipps-

land had been subject to an irrigation ban and it

was not until April that all restrictions were lifted.

Gippsland Water implemented low level

restrictions at Thorpdale through summer, due to

low flows in the Little Narracan Creek. SRW staff

undertook daily surveillance and monitoring of the

stream to ensure that river diverters complied

with licence conditions and to safeguard flows

for urban use.

Upper Latrobe River usage was low and no

rosters were implemented, even though there

were only minimal environmental flows evident

in early March. Water usage on the Latrobe River

decreased by 30% on last year.

Water restrictions were introduced on the

Mitchell River on 22 January, which was two

months earlier than last year. The stream

struggled to cope with irrigation demands and

environmental flows. By 11 March irrigators were

on stage 9 of a 10 stage roster. Fortunately the

area received good rainfall and a drop in demand

enabled the lifting of all restrictions on 22 March.

Most other streams in this area, whilst

experiencing low flows coped well due to a lack

of irrigation. The dramatic price rise of diesel has

also been a factor in the decline in irrigation

activity.

All active irrigators on the Snowy River and its

tributaries were metered in January 2001.

On the Avon River irrigation commenced in late

October. Low rainfalls led to the implementation

of rosters on 17 December. These remained in

place until late April when the area received good

rainfall. Valencia Creek was subject to a total

irrigation ban from 19 December 2000 until April

2001.

There was no requirement for rostering on

streams in the Koo-Wee-Rup area. Releases from

Tarago Reservoir and tributaries resulted in good

flows and irrigation requirements were met.

Throughout south west Victoria, below average

rainfall continued to be of concern all year.

Restrictions were imposed throughout the region

between November and May, with total bans on

some streams between January and May.

However, good rains in April allowed the winterfill

season to commence on time this year.

Flows into the Moorabool River reached critically

low levels by mid December.

Restrictions were imposed at that

time, with irrigation being totally

banned by late December. The river

did not recover sufficiently to allow

the bans to be lifted until May. The

Barwon River was also stressed by

low flows during the year.

The Merri River roster was again

placed on a message bank service,

and the Gellibrand River roster was

added to the service for the first time.

This service has operated very

successfully and will be extended to

other rosters during 2001/2 as

appropriate. Irrigators on the Merri

were subject to restriction between

January and May. Consultation with

the Merri River Customer Consultative

Committee assisted greatly in

managing rosters and restrictions

throughout the year.

The Gellibrand River was placed on

restrictions from February to April.

Improved communication of the roster

by way of the message bank service

and ongoing consultation with the

local Customer group and South West

Water ensured that environmental

flows were maintained throughout the

year.

Continuing dry conditions in the early

part of the season placed the

Maribyrnong and Werribee River

systems under stress. Irrigators on

unregulated sections of the rivers

were subjected to total bans between

January and May. Those on the

regulated sections were initially

offered only 50% of their allocation,

but good rains in March allowed this

to be increased to 100%.

The rivers in the far west were greatly

stressed, with the Glenelg and the

Wannon drying out completely. Total

bans were imposed on all streams

between January and May.

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HEADWORKSHEADWORKSHEADWORKSHEADWORKSHEADWORKS


The principal financial objective of our

Headworks business is to harvest and store water

on behalf of bulk entitlement holders - both

internal and external - on a full cost recovery

basis, in accordance with the Bulk Entitlement

Orders which confer those entitlements. Pending

the finalisation of remaining Orders, interim

arrangements and agreements are in place with

appropriate external customers.

Current Government policy also provides for SRW

to charge a 4% rate of return to non-metropolitan

urban water suppliers on the assets employed to

harvest and store their entitlements.

This activity was budgeted to generate total

revenues for 2000/1 of $4.418 million and an

operating surplus of $1.297 million.

Revenues for the Maribyrnong system were

adversely affected by low demand for water from

Western Water and by reduced recoveries

pending finalisation of Bulk Entitlement Orders.

Conversely, revenues for the Werribee and

Yallourn Storages systems were above budget.

The actual total revenues from all sources of

$4.817 million were thus able to more than

overcome increases in expenditure ($3.334 million

actual against $3.121 million budget. This,

together with a reduction in the dividend payment

to Government, resulted in an actual surplus of

$1.482 million, up $213,000 on the budget forecast.


Lake Glenmaggie filled quickly during the 1999/

2000 winter and spilled from mid October until the

beginning of December. There was a heavy

demand for irrigation water from the beginning

of the season and releases were carefully

monitored in order to optimise the available

resources. The absence of replenishing in-

season rains meant that, by the end of the

irrigation period, Glenmaggie was reduced to

about 9% of capacity.

Following the end of the season the storage

commenced filling slowly and held just over

32,000 ML by 30 June. Given normal patterns of

inflow it is hoped that supply levels should be

restored in good time for the 2001/2 season.

Normal daily operational routines during the year

were supplemented by special works during 2000/

1, preparatory to implementing the rehabilitation

programs for several of the valves which release

water to the Northern and Southern Channels and

the Macalister River.

L a k e G l e n m a g g i e f i l l e d q u i c k l yL a k e G l e n m a g g i e f i l l e d q u i c k l y

L a k e G l e n m a g g i e f i l l e d q u i c k l yL a k e G l e n m a g g i e f i l l e d q u i c k l y

L a k e G l e n m a g g i e f i l l e d q u i c k l y

d u r i n g t h e 1 9 9 9 / 2 0 0 0 w i n t e rd u r i n g t h e 1 9 9 9 / 2 0 0 0 w i n t e r

d u r i n g t h e 1 9 9 9 / 2 0 0 0 w i n t e rd u r i n g t h e 1 9 9 9 / 2 0 0 0 w i n t e r

d u r i n g t h e 1 9 9 9 / 2 0 0 0 w i n t e r

a n d s p i l l e d f r o m m i d O c t o b e ra n d s p i l l e d f r o m m i d O c t o b e r

a n d s p i l l e d f r o m m i d O c t o b e ra n d s p i l l e d f r o m m i d O c t o b e r

a n d s p i l l e d f r o m m i d O c t o b e r

u n t i l t h e b e g i n n i n g o fu n t i l t h e b e g i n n i n g o f

u n t i l t h e b e g i n n i n g o fu n t i l t h e b e g i n n i n g o f

u n t i l t h e b e g i n n i n g o f

D e c e m b e r . T h e r e w a s a h e a v yD e c e m b e r . T h e r e w a s a h e a v y

D e c e m b e r . T h e r e w a s a h e a v yD e c e m b e r . T h e r e w a s a h e a v y

D e c e m b e r . T h e r e w a s a h e a v y

d e m a n d f o r i r r i g a t i o n w a t e rd e m a n d f o r i r r i g a t i o n w a t e r

d e m a n d f o r i r r i g a t i o n w a t e rd e m a n d f o r i r r i g a t i o n w a t e r

d e m a n d f o r i r r i g a t i o n w a t e r

f r o m t h e b e g i n n i n g o f t h ef r o m t h e b e g i n n i n g o f t h e

f r o m t h e b e g i n n i n g o f t h ef r o m t h e b e g i n n i n g o f t h e

f r o m t h e b e g i n n i n g o f t h e

s e a s o n a n d r e l e a s e s w e r es e a s o n a n d r e l e a s e s w e r e

s e a s o n a n d r e l e a s e s w e r es e a s o n a n d r e l e a s e s w e r e

s e a s o n a n d r e l e a s e s w e r e

c a r e f u l l y m o n i t o r e d i n o r d e r t oc a r e f u l l y m o n i t o r e d i n o r d e r t o

c a r e f u l l y m o n i t o r e d i n o r d e r t oc a r e f u l l y m o n i t o r e d i n o r d e r t o

c a r e f u l l y m o n i t o r e d i n o r d e r t o

o p t i m i s e t h e a v a i l a b l eo p t i m i s e t h e a v a i l a b l e

o p t i m i s e t h e a v a i l a b l eo p t i m i s e t h e a v a i l a b l e

o p t i m i s e t h e a v a i l a b l e

r e s o u r c e s . T h e a b s e n c e o fr e s o u r c e s . T h e a b s e n c e o f

r e s o u r c e s . T h e a b s e n c e o fr e s o u r c e s . T h e a b s e n c e o f

r e s o u r c e s . T h e a b s e n c e o f

r e p l e n i s h i n g i n - s e a s o n r a i n sr e p l e n i s h i n g i n - s e a s o n r a i n s

r e p l e n i s h i n g i n - s e a s o n r a i n sr e p l e n i s h i n g i n - s e a s o n r a i n s

r e p l e n i s h i n g i n - s e a s o n r a i n s

m e a n t t h a t , b y t h e e n d o f t h em e a n t t h a t , b y t h e e n d o f t h e

m e a n t t h a t , b y t h e e n d o f t h em e a n t t h a t , b y t h e e n d o f t h e

m e a n t t h a t , b y t h e e n d o f t h e

i r r i g a t i o n p e r i o d , G l e n m a g g i ei r r i g a t i o n p e r i o d , G l e n m a g g i e

i r r i g a t i o n p e r i o d , G l e n m a g g i ei r r i g a t i o n p e r i o d , G l e n m a g g i e

i r r i g a t i o n p e r i o d , G l e n m a g g i e

w a s r e d u c e d t o a b o u t 9 % o fw a s r e d u c e d t o a b o u t 9 % o f

w a s r e d u c e d t o a b o u t 9 % o fw a s r e d u c e d t o a b o u t 9 % o f

w a s r e d u c e d t o a b o u t 9 % o f

c a p a c i t y .c a p a c i t y .

c a p a c i t y .c a p a c i t y .

c a p a c i t y .

An early view of Lake Glenmaggie dam, prior

to the installation of the fourteen radial gates

which increased its capacity to the current

level of 190,000 ML.

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21

The 75th birthday of the Lake Glenmaggie dam and

of water delivery from it to the Macalister

irrigation District was also a major event during

the year. This milestone was highlighted by a very

successful open day that offered an opportunity

for all stakeholders to view and gain an insight

into the operation and functions of such things

as the hydroelectric generators, the floodgates

and various valves. It is hoped that similar events

will be held in the future.

The Yallourn Storages (Lake Narracan dam and

Yallourn weir) underwent exhaustive expert

reviews and feasibility studies during the year,

whilst staff continued to upgrade and improve site

safety and security. These works are preparatory

to major works projects on both structures in the

coming two years. Careful inspections were

carried out on both dams, following several minor

earthquakes, in order to ensure that no structural

damage had occurred and that all equipment and

machinery was unaffected. The telephone service

which is utilised for remote monitoring and

operation of the site, was re-laid underground to

ensure more reliable operations, particularly

during storm events.

Blue Rock Dam continued to supply bulk water

for the Power Industry and downstream irrigators

but this demand was less than that experienced

at other storages. Consequently the storage

emptied only to about 65 % of capacity and began

filling rapidly after the summer demand ended.

Water from Blue Rock Lake augments the

Gippsland Water storages and during the

extended dry period water was pumped from Blue

Rock to the Moondarra storage.

Blue Rock again played host to a large number of

recreational visitors to its extensive park areas.

The Blue Rock Classic (which is an annual team

based sporting event) also attracted many visitors

to the dam.

The year was uneventful at Cowwarr weir until

late April when the failure of an electronic

component resulted in the main gates failing to

open automatically during a local severe

rainstorm and flash flood which saw inflows jump

during a one hour period from a rate of about 2,000

ML/day to in excess of 8,000 ML. This caused the

pool level to increase rapidly and prompt action

was required by staff to restore it to a safe level.

Routine technical surveillance monitoring was

carried out by the SMEC consulting group, which

confirmed that all eastern Headworks storages

were operating and performing within the

industry guidelines and standards.

Likewise the annual Dam safety Management

audit identified only one deficiency, namely that

skilled operational staffing levels were at a

minimum and may not have been adequate to

manage a major emergency. Action has been

implemented to correct this situation, including

employment of an additional staff member.

The Werribee system storages, with the

exception of Melton, began the year relatively

empty, as a result of the continuing low rainfall

patterns of recent years. On 1 July 2000 Merrimu

held only 23% of capacity, Melton 61 % and Pykes

Creek 27%.

Western Headworks staff take a break between

bus tours on the occasion of the Lerderderg weir

Open Day on .

(L to R); Pat Caruso, Gary Madden, Tim Kay, Ray

Dohnt, David Hall and Stephen Peter.

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22

Low to moderate inflows were occurred until mid-

October, when heavy rainfalls throughout the

catchment resulted in very high inflows that saw

Melton and Pykes Creek fill to capacity, and

Merrimu increase significantly to a peak of 74.2%.

The storages finished the year in a much better

state than has been experienced in recent years,

with Merrimu holding 61%, Pykes Creek 78% and

Melton 53% of capacity at 30 June 2001.

In the Maribyrnong system, Rosslynne reservoir

held an all time low of just 7.9% of capacity on 1

July 2000. Here also the October rains provided

considerable relief. The reservoir held 42.6% of

capacity at the end of October, before demand

again exceeded inflows causing the reservoir to

end the year at 32.4% full.

The Lerderderg catchment experienced one of

the highest rainfalls recorded in a twenty four

hour period during the heavy October rains. This

resulted in record stream flows in the Lerderderg

River system. Staff were immediately put on alert

to monitor and carry out routine flood surveillance

of structures throughout this period and ensure

continuity of inflows to the tunnels and Merrimu

Reservoir.

The river recorded a rapid rise in flow rate, from

100 ML/day to 10,000 ML/day in less than four

hours. As a consequence, massive volumes of

debris were washed downstream and suddenly

deposited against the weir gates. Their great

weight resulted in all three radial gates

malfunctioning and the obstruction of the

automatic pool control function that controls the

gate opening. This caused the gates to be over-

topped for a short period, until the initial flow

subsided and manual operation of the gates was

possible. Full functionality of the gates was

returned within three days of the flood event.

Following the event a complete mechanical/

electrical inspection and recommissioning of the

structure and equipment was performed. As a

result of this process, further works will be

conducted throughout this year to ensure the

ongoing integrity of the structure and associated

systems.

In light of the extent of flows, the levels of debris

deposited against the structure and the

subsequent malfunction, a full design review of

the structure will be undertaken to assess the

capability of the structure under severe flood

situations and to consider improvements to the

structure to minimise impacts from flooding.

Later in the year one of the main attractions of

2000/1 on the western storages was a series of

guided tours of the Lerderderg Weir and tunnels

offered to the local community on Sunday 25

March 2001.

The feature of the day was the guided bus tours

into the Lerderderg Diversion Weir site. For safety

reasons general access to the site by the public

is normally restricted. The tours provided the

opportunity for the public to view the Lerderderg

Diversion Weir first hand and to explain to them

the purpose of the weir and the mechanics of

filling Merrimu Reservoir. The day was an

outstanding success, with around 300 people

from local and distant communities attending.

T h e L e r d e r d e r g c a t c h m e n tT h e L e r d e r d e r g c a t c h m e n t

T h e L e r d e r d e r g c a t c h m e n tT h e L e r d e r d e r g c a t c h m e n t

T h e L e r d e r d e r g c a t c h m e n t

e x p e r i e n c e d o n e o f t h e h i g h e s te x p e r i e n c e d o n e o f t h e h i g h e s t

e x p e r i e n c e d o n e o f t h e h i g h e s te x p e r i e n c e d o n e o f t h e h i g h e s t

e x p e r i e n c e d o n e o f t h e h i g h e s t

r a i n f a l l s r e c o r d e d i n a t w e n t yr a i n f a l l s r e c o r d e d i n a t w e n t y

r a i n f a l l s r e c o r d e d i n a t w e n t yr a i n f a l l s r e c o r d e d i n a t w e n t y

r a i n f a l l s r e c o r d e d i n a t w e n t y

f o u r h o u r p e r i o d d u r i n g t h ef o u r h o u r p e r i o d d u r i n g t h e

f o u r h o u r p e r i o d d u r i n g t h ef o u r h o u r p e r i o d d u r i n g t h e

f o u r h o u r p e r i o d d u r i n g t h e

h e a v y O c t o b e r r a i n s . T h i sh e a v y O c t o b e r r a i n s . T h i s

h e a v y O c t o b e r r a i n s . T h i sh e a v y O c t o b e r r a i n s . T h i s

h e a v y O c t o b e r r a i n s . T h i s

r e s u l t e d i n r e c o r d s t r e a mr e s u l t e d i n r e c o r d s t r e a m

r e s u l t e d i n r e c o r d s t r e a mr e s u l t e d i n r e c o r d s t r e a m

r e s u l t e d i n r e c o r d s t r e a m

f l o w s i n t h e L e r d e r d e r g R i v e rf l o w s i n t h e L e r d e r d e r g R i v e r

f l o w s i n t h e L e r d e r d e r g R i v e rf l o w s i n t h e L e r d e r d e r g R i v e r

f l o w s i n t h e L e r d e r d e r g R i v e r

s y s t e m . S t a f f w e r es y s t e m . S t a f f w e r e

s y s t e m . S t a f f w e r es y s t e m . S t a f f w e r e

s y s t e m . S t a f f w e r e

i m m e d i a t e l y p u t o n a l e r t t oi m m e d i a t e l y p u t o n a l e r t t o

i m m e d i a t e l y p u t o n a l e r t t oi m m e d i a t e l y p u t o n a l e r t t o

i m m e d i a t e l y p u t o n a l e r t t o

m o n i t o r a n d c a r r y o u t r o u t i n em o n i t o r a n d c a r r y o u t r o u t i n e

m o n i t o r a n d c a r r y o u t r o u t i n em o n i t o r a n d c a r r y o u t r o u t i n e

m o n i t o r a n d c a r r y o u t r o u t i n e

f l o o d s u r v e i l l a n c e o f s t r u c t u r e sf l o o d s u r v e i l l a n c e o f s t r u c t u r e s

f l o o d s u r v e i l l a n c e o f s t r u c t u r e sf l o o d s u r v e i l l a n c e o f s t r u c t u r e s

f l o o d s u r v e i l l a n c e o f s t r u c t u r e s

t h r o u g h o u t t h i s p e r i o d a n dt h r o u g h o u t t h i s p e r i o d a n d

t h r o u g h o u t t h i s p e r i o d a n dt h r o u g h o u t t h i s p e r i o d a n d

t h r o u g h o u t t h i s p e r i o d a n d

e n s u r e c o n t i n u i t y o f i n f l o w s t oe n s u r e c o n t i n u i t y o f i n f l o w s t o

e n s u r e c o n t i n u i t y o f i n f l o w s t oe n s u r e c o n t i n u i t y o f i n f l o w s t o

e n s u r e c o n t i n u i t y o f i n f l o w s t o

t h e t u n n e l s a n d M e r r i m ut h e t u n n e l s a n d M e r r i m u

t h e t u n n e l s a n d M e r r i m ut h e t u n n e l s a n d M e r r i m u

t h e t u n n e l s a n d M e r r i m u

R e s e r v o i r .R e s e r v o i r .

R e s e r v o i r .R e s e r v o i r .

R e s e r v o i r .

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At Rosslynne, extensive water quality monitoring

was undertaken due to outbreaks of blue green

algae. Western Water also designed and installed

a water aeration system to combat high

manganese levels in stored water.

The serrated tussock eradication program

continued at Melton, using both contractors and

SRW staff. Blue green algae monitoring was also

essential during the summer. All boating control

signage and buoys were upgraded during the year

to comply with Marine Board regulations. Melton

was also the venue for stage 1 of a proposed 3

stage joint program with Greening Australia (Vic),

to replant native vegetation on Authority marginal

lands.

The principal activities at Merrimu were the

serrated tussock program, concentrating on the

northern and eastern areas of the storage within

the Authority’s boundary, and monitoring and

testing for Blue Green Algae.

Not surprisingly, repairs, testing and recommis-

sioning of the structure following the October

flood was the main works activity for 2000/1 at

Lerderderg.

At Pykes Creek both blackberry and serrated

tussock were targeted. Important modifications

were also made to the Upper Werribee diversion

weir structure, to enhance our ability to accu-

rately meet the requirements of the Werribee Bulk

Entitlement whilst maintaining efficiency in the

diversion of flows into Pykes Creek Reservoir. The

Werribee River diversion tunnel downstream

measuring station was also upgraded to ensure

the maintenance of accurate and reliable data.

Pykes Creek also received new boating control

signage.

On the staffing front, an opportunity has been

provided for two traineeships in Water Resource

Management in the Headworks business. An

extensive review was also carried out on the

training needs of the Headworks group and a

comprehensive training program has been

developed to ensure staff are well qualified to

manage our complex and essential structures in

a safe and efficient manner.

SRW staff climb down and prepare to tackle the

huge debris pile which washed up against

Lerderderg weir during the October 2000 flash

flood, jamming the gates and preventing their

operation.

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CAPITAL WORKSCAPITAL WORKSCAPITAL WORKSCAPITAL WORKSCAPITAL WORKS

SRW set a capital works budget for 2000/1 of $2.88

million comprising:

– $970,000 for Headworks projects:

– $310,000 for works at Lake Narracan Dam

and Yallourn Weir, the cost of which is

recovered from the power generating

companies; and

– $1.6 million for works on irrigation

infrastructure including $1 million in the

Macalister Irrigation District.

A major Headworks project for the year was the

completion of the Dam Design Review Program,

which comprised thorough technical assessment

of the design of all SRW dams against current day

standards.

The reviews of the remaining two high hazard

dams at Melton and Merrimu were commenced,

together with a review of Yallourn Weir, which is

our highest risk diversion weir. In addition further

work was commissioned on specific design

aspects of Blue Rock and Glenmaggie dams.

At Lake Narracan dam foundation investigations

were completed and a structural analysis of gates

commenced, as the first step in a major program

of upgrading. The emergency power generator

at the dam, which was 40 years old, was also

replaced.

A major rehabilitation and remedial works

program commenced at Lake Glenmaggie dam.

Work was commenced on the Erosion Control

Program at sites around Sandy point and the

Munjara camp. Bank reshaping and wave

protection measures were completed in these

areas. Further works are programmed for next

year at priority spots around the lake, including

Kelly Cove.

The rehabilitation of the first of the two major

control valves on the southern outlet at Lake

Glenmaggie dam was completed during the 1999/

2000 winter shut down period. The valve was

recommissioned by mid August, and has operated

satisfactorily during the season. The second of

the two valves was removed for rehabilitation in

May 2001 and will also be re-installed and re-

commissioned by early August.

The northern outlet at Glenmaggie consists of

three vertical sleeve valves that date back to the

original construction. These valves showed signs

of deterioration, and were unsuitable for modern

control adaptation. They will be replaced with

modern stainless steel and delivery of the three

new valves took place in April. A contract to

install the valves over two winter periods has

been let and the first should be operational by

the end of July 2001.

T h e r e h a b i l i t a t i o n o f t h e f i r s t o fT h e r e h a b i l i t a t i o n o f t h e f i r s t o f

T h e r e h a b i l i t a t i o n o f t h e f i r s t o fT h e r e h a b i l i t a t i o n o f t h e f i r s t o f

T h e r e h a b i l i t a t i o n o f t h e f i r s t o f

t h e t w o m a j o r c o n t r o l v a l v e st h e t w o m a j o r c o n t r o l v a l v e s

t h e t w o m a j o r c o n t r o l v a l v e st h e t w o m a j o r c o n t r o l v a l v e s

t h e t w o m a j o r c o n t r o l v a l v e s

o n t h e s o u t h e r n o u t l e t a t L a k eo n t h e s o u t h e r n o u t l e t a t L a k e

o n t h e s o u t h e r n o u t l e t a t L a k eo n t h e s o u t h e r n o u t l e t a t L a k e

o n t h e s o u t h e r n o u t l e t a t L a k e

G l e n m a g g i e d a m w a sG l e n m a g g i e d a m w a s

G l e n m a g g i e d a m w a sG l e n m a g g i e d a m w a s

G l e n m a g g i e d a m w a s

c o m p l e t e d d u r i n g t h ec o m p l e t e d d u r i n g t h e

c o m p l e t e d d u r i n g t h ec o m p l e t e d d u r i n g t h e

c o m p l e t e d d u r i n g t h e

1 9 9 9 / 2 0 0 0 w i n t e r s h u t d o w n1 9 9 9 / 2 0 0 0 w i n t e r s h u t d o w n

1 9 9 9 / 2 0 0 0 w i n t e r s h u t d o w n1 9 9 9 / 2 0 0 0 w i n t e r s h u t d o w n

1 9 9 9 / 2 0 0 0 w i n t e r s h u t d o w n

p e r i o d . T h e v a l v e w a sp e r i o d . T h e v a l v e w a s

p e r i o d . T h e v a l v e w a sp e r i o d . T h e v a l v e w a s

p e r i o d . T h e v a l v e w a s

r e c o m m i s s i o n e d b y m i dr e c o m m i s s i o n e d b y m i d

r e c o m m i s s i o n e d b y m i dr e c o m m i s s i o n e d b y m i d

r e c o m m i s s i o n e d b y m i d

A u g u s t , a n d h a s o p e r a t e dA u g u s t , a n d h a s o p e r a t e d

A u g u s t , a n d h a s o p e r a t e dA u g u s t , a n d h a s o p e r a t e d

A u g u s t , a n d h a s o p e r a t e d

s a t i s f a c t o r i l y d u r i n g t h es a t i s f a c t o r i l y d u r i n g t h e

s a t i s f a c t o r i l y d u r i n g t h es a t i s f a c t o r i l y d u r i n g t h e

s a t i s f a c t o r i l y d u r i n g t h e

s e a s o n . T h e s e c o n d o f t h e t w os e a s o n . T h e s e c o n d o f t h e t w o

s e a s o n . T h e s e c o n d o f t h e t w os e a s o n . T h e s e c o n d o f t h e t w o

s e a s o n . T h e s e c o n d o f t h e t w o

v a l v e s w a s r e m o v e d f o rv a l v e s w a s r e m o v e d f o r

v a l v e s w a s r e m o v e d f o rv a l v e s w a s r e m o v e d f o r

v a l v e s w a s r e m o v e d f o r

r e h a b i l i t a t i o n i n M a y 2 0 0 1 a n dr e h a b i l i t a t i o n i n M a y 2 0 0 1 a n d

r e h a b i l i t a t i o n i n M a y 2 0 0 1 a n dr e h a b i l i t a t i o n i n M a y 2 0 0 1 a n d

r e h a b i l i t a t i o n i n M a y 2 0 0 1 a n d

w i l l a l s o b e r e - i n s t a l l e d a n d r e -w i l l a l s o b e r e - i n s t a l l e d a n d r e -

w i l l a l s o b e r e - i n s t a l l e d a n d r e -w i l l a l s o b e r e - i n s t a l l e d a n d r e -

w i l l a l s o b e r e - i n s t a l l e d a n d r e -

c o m m i s s i o n e d b y e a r l y A u g u s t .c o m m i s s i o n e d b y e a r l y A u g u s t .

c o m m i s s i o n e d b y e a r l y A u g u s t .c o m m i s s i o n e d b y e a r l y A u g u s t .

c o m m i s s i o n e d b y e a r l y A u g u s t .

Lerderderg weir.

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Equipment to enable spillway gates to be

operated during a power blackout or electric

motor failure at Cowwarr and Maffra Weirs will

be installed before the onset of Spring rains.

At Lerderderg Weir, the generator which supplies

electricity for the operation of the site is to be

replaced. Following the flash flood in October

2000, the requirements of the replacement were

re-assessed and additional capabilities added.

Installation will be completed by Spring. Other

In the Macalister Irrigation District the main

projects were:

– Tendering the “design and construct”

contract for the replacement of Little Weir,

which is a dam wall which forms part of the

of the Main Northern channel where it

crosses a gully immediately downstream of

Lake Glenmaggie. The replacement works

include constructing a new structure across

the gully, stabilising the tunnels either side of

the dam wall, and site rehabilitation and

revegetation of the area currently inundated.

The project will be the main works

undertaken during the 2002 winter shutdown

period.

– Commencement of Stage 1 of the Nuntin

Pipelining project, which involves the

replacement of old concrete lined channels

with pipe. This first stage involves

construction of approximately half a

kilometre of pipeline.

– Continuation of the footbridge replacement

and upgrade program to provide safe access

for SRW operators

– Continuation of the main channel regulator

upgrade program, replacing drop-bar

regulators with automated doors to improve

operator safety and service

– Commencement of erosion control on

sections of the Main Northern channel

– Investigation of sections of the channel

system that have service delivery problems.

These resulted in works on the Bundalaguah

2/2 and Sale 1/3 channels prior to the start of

the 2001/02 irrigation season

– Repair of joints on the Main Northern siphon

No 2.

In the W estern Irrigation business

(W erribee and Bacchus Marsh

Irrigation Districts) the main projects

undertaken during the year were:

– Commencement of the “design

and construct” contract to

replace Flume 6, which is an

eighty-year old elevated concrete

flume in Bacchus Marsh. The

works will be undertaken during

the winter period, and are

scheduled to avoid disruption to

winter irrigation supply

requirements.

– Continuation of the fencing

program in the urban areas of

Bacchus Marsh

– Securing of funds from the State

“Water for Growth” program to

partly fund a feasibility study for

piping all of the Werribee

Irrigation District

– Undertaking repairs to the

Werribee Diversion weir, damaged

during a flood event in November

2000

– Replacement of three minor

crossings on the channel and

drain systems.

The first refurbished control valve onthe southern outlet of Lake

Glenmaggie dam has been returnedand lowered in place; the crane

dogman has climbed onto the valveand waits for the lifting chains to be

slackened, so that he can releasethem.

SRW engineers Phil Dijs (centre) and MarcGrunow (right) discuss progress on the first

stage of the Nuntin pipelining program in theMID with contractor Ian Smith.

minor works were undertaken at the site, some

resulting from flood damage.

The principal Irrigation infrastructure projects for

2000/1 comprised works to:

– replace poor-condition infrastructure;

– improve service;

– improve safety; and

– address environmental issues.

25

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RESOURCERESOURCERESOURCERESOURCERESOURCE

MANAGEMENTMANAGEMENTMANAGEMENTMANAGEMENTMANAGEMENT

ENVIRONMENTAL MANAGEMENTENVIRONMENTAL MANAGEMENTENVIRONMENTAL MANAGEMENTENVIRONMENTAL MANAGEMENTENVIRONMENTAL MANAGEMENTSRW is developing an Environmental

Management System that will ensure it is aware

of statutory obligations, and the range of

environmental risks that it potentially faces as a

result of its activities, and identifies measures to

address these. This will include its obligations

under the Victorian Biodiversity Strategy.

SRW is also developing Reservoir Management

Plans for each storage to draw together the

research into impacts of storage releases on the

downstream environment, management of

releases, blue green algae management and the

risks to our storage water quality from upper

catchment in-flows. It has completed a review of

the water quality information collected from our

storages and initiated a risk assessment to

identify where the water quality related hazards

lie from both upper catchment inflows and

releases from our storage to the downstream

environment.

SRW monitors its storages for potentially toxic

blue green algae so that when a bloom occurs it

can respond quickly and accurately by informing

our customers, urban suppliers and environ-

mental agencies of the situation. Last year SRW

commissioned CSIRO to prepare a report of the

risks blue green algae poses in our storages so

that we can better inform our business, other

stakeholders and our customers of the risks.

GIPPSLAND LAKESGIPPSLAND LAKESGIPPSLAND LAKESGIPPSLAND LAKESGIPPSLAND LAKES

RESCUE PACKAGERESCUE PACKAGERESCUE PACKAGERESCUE PACKAGERESCUE PACKAGESRW is supporting the Gippsland Lakes Rescue

Package through a range of initiatives – imple-

mentation of the Thomson Macalister bulk

entitlements, completion of joint sealing on the

MID Main Southern Channel, and our involvement

in the MID Nutrient Reduction Plan.

SRW is responsible, in conjunction with other

stakeholders, for implementing the MID Nutrient

Reduction Plan. The Plan outlines the expected

contributions to and outcomes from initiatives

aimed at reducing the discharge of nutrients from

the MID. Last year SRW supported landholder

extension, water monitoring, nutrient research

and investigation activities, as well as processing

“ whole farm plans” and continuing development

of drain management plans.

Improved drain management is a continuing

priority, since reducing drainage outflows is a

principal means of reducing nutrient export.

SRW’s current Prime Development Zones project

promises further diversion from the drains,

coupled with the development of higher value

irrigated enterprises operating on a sustainable

basis.

In salinity management, SRW implements the

groundwater pumping component of the

Wellington Salinity Plan (18 groundwater pumps

extracting over 4,500 ML of groundwater

annually) on behalf of the Wellington Salinity

Group. Saline groundwater is pumped out of the

shallow aquifers to lower water tables and

therefore decrease soil salinity. The program is

recognised as one of the most effective in the

State.

WATER MONITORINGWATER MONITORINGWATER MONITORINGWATER MONITORINGWATER MONITORINGSRW has a water quality monitoring program

designed to indicate the potential impacts from

water supplies and irrigation district discharges

on the beneficial uses to customers, recreational

users and the environment.

S R W i s r e s p o n s i b l e , i nS R W i s r e s p o n s i b l e , i n

S R W i s r e s p o n s i b l e , i nS R W i s r e s p o n s i b l e , i n

S R W i s r e s p o n s i b l e , i n

c o n j u n c t i o n w i t h o t h e rc o n j u n c t i o n w i t h o t h e r

c o n j u n c t i o n w i t h o t h e rc o n j u n c t i o n w i t h o t h e r

c o n j u n c t i o n w i t h o t h e r

s t a k e h o l d e r s , f o r i m p l e m e n t i n gs t a k e h o l d e r s , f o r i m p l e m e n t i n g

s t a k e h o l d e r s , f o r i m p l e m e n t i n gs t a k e h o l d e r s , f o r i m p l e m e n t i n g

s t a k e h o l d e r s , f o r i m p l e m e n t i n g

t h e M I D N u t r i e n t R e d u c t i o nt h e M I D N u t r i e n t R e d u c t i o n

t h e M I D N u t r i e n t R e d u c t i o nt h e M I D N u t r i e n t R e d u c t i o n

t h e M I D N u t r i e n t R e d u c t i o n

P l a n . T h e P l a n o u t l i n e s t h eP l a n . T h e P l a n o u t l i n e s t h e

P l a n . T h e P l a n o u t l i n e s t h eP l a n . T h e P l a n o u t l i n e s t h e

P l a n . T h e P l a n o u t l i n e s t h e

e x p e c t e d c o n t r i b u t i o n s t o a n de x p e c t e d c o n t r i b u t i o n s t o a n d

e x p e c t e d c o n t r i b u t i o n s t o a n de x p e c t e d c o n t r i b u t i o n s t o a n d

e x p e c t e d c o n t r i b u t i o n s t o a n d

o u t c o m e s f r o m i n i t i a t i v e so u t c o m e s f r o m i n i t i a t i v e s

o u t c o m e s f r o m i n i t i a t i v e so u t c o m e s f r o m i n i t i a t i v e s

o u t c o m e s f r o m i n i t i a t i v e s

a i m e d a t r e d u c i n g t h ea i m e d a t r e d u c i n g t h e

a i m e d a t r e d u c i n g t h ea i m e d a t r e d u c i n g t h e

a i m e d a t r e d u c i n g t h e

d i s c h a r g e o f n u t r i e n t s f r o m t h ed i s c h a r g e o f n u t r i e n t s f r o m t h e

d i s c h a r g e o f n u t r i e n t s f r o m t h ed i s c h a r g e o f n u t r i e n t s f r o m t h e

d i s c h a r g e o f n u t r i e n t s f r o m t h e

M I D . L a s t y e a r S R W s u p p o r t e dM I D . L a s t y e a r S R W s u p p o r t e d

M I D . L a s t y e a r S R W s u p p o r t e dM I D . L a s t y e a r S R W s u p p o r t e d

M I D . L a s t y e a r S R W s u p p o r t e d

l a n d h o l d e r e x t e n s i o n , w a t e rl a n d h o l d e r e x t e n s i o n , w a t e r

l a n d h o l d e r e x t e n s i o n , w a t e rl a n d h o l d e r e x t e n s i o n , w a t e r

l a n d h o l d e r e x t e n s i o n , w a t e r

m o n i t o r i n g , n u t r i e n t r e s e a r c hm o n i t o r i n g , n u t r i e n t r e s e a r c h

m o n i t o r i n g , n u t r i e n t r e s e a r c hm o n i t o r i n g , n u t r i e n t r e s e a r c h

m o n i t o r i n g , n u t r i e n t r e s e a r c h

a n d i n v e s t i g a t i o n a c t i v i t i e s , a sa n d i n v e s t i g a t i o n a c t i v i t i e s , a s

a n d i n v e s t i g a t i o n a c t i v i t i e s , a sa n d i n v e s t i g a t i o n a c t i v i t i e s , a s

a n d i n v e s t i g a t i o n a c t i v i t i e s , a s

w e l l a s p r o c e s s i n g “ w h o l ew e l l a s p r o c e s s i n g “ w h o l e

w e l l a s p r o c e s s i n g “ w h o l ew e l l a s p r o c e s s i n g “ w h o l e

w e l l a s p r o c e s s i n g “ w h o l e

f a r m p l a n s ” a n d c o n t i n u i n gf a r m p l a n s ” a n d c o n t i n u i n g

f a r m p l a n s ” a n d c o n t i n u i n gf a r m p l a n s ” a n d c o n t i n u i n g

f a r m p l a n s ” a n d c o n t i n u i n g

d e v e l o p m e n t o f d r a i nd e v e l o p m e n t o f d r a i n

d e v e l o p m e n t o f d r a i nd e v e l o p m e n t o f d r a i n

d e v e l o p m e n t o f d r a i n

m a n a g e m e n t p l a n s .m a n a g e m e n t p l a n s .

m a n a g e m e n t p l a n s .m a n a g e m e n t p l a n s .

m a n a g e m e n t p l a n s .

Inspecting the new monitoring station

installed during 2000/1 to measure nutrient

loads on one of the major drains in the

Werribee Irrigation District are (L to R); Dean

Jones (DNRE), Brian Seaton (Thiess), Patrick

Ylloh (VGA), Alec Berias (WID CCC), Bill

Barham (Thiess) and Pat Caruso, SRW

Manager Western Irrigation.

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SRW has monitoring on five major storages to

indicate microbiology, nutrients and blue green

algae. SRW also carries out water quality monitor-

ing for nutrients discharging from the drains in

the Macalister Irrigation District, and contributes

to Waterwatch programs to undertake additional

water monitoring and community education

activities. Overall, SRW has 69 flow monitoring

sites on waterways and drains it manages and

contributes to a further 67 sites in the State

network.

RESEARCHRESEARCHRESEARCHRESEARCHRESEARCHSRW commits well over $200,000 to research

annually, with the aim of being informed of issues

that arise from its business and could potentially

impact on the environment. It has established

links and co-operative partnerships with Arthur

Rylah Institute, Macalister Research Farm, CRC

for Catchment Hydrology, CSIRO and RMIT.

WATER EFFICIENCYWATER EFFICIENCYWATER EFFICIENCYWATER EFFICIENCYWATER EFFICIENCYSRW recognises that improved water efficiency

will enable better environmental outcomes whilst

recognising the social and economic needs of

local communities.

In our Irrigation Districts, a priority is to improve

customer understanding of water security, since

a lack of information can retard the take-up of

better irrigation practices. SRW also continues

to encourage all customers to use the oppor-

tunities provided by water trading to improve their

returns from water efficiency improvements.

Cost-effective reduction in water losses from

earthen channels remains a challenge, with

current treatments very expensive. However,

pipelining is cost-effective in some circum-

stances, and further pipelining is proceeding in

the Werribee and Macalister Irrigation Districts.

In 2001/2, a Water for Growth project on the Avon

River will explore opportunities for better water

use - with the water savings being directed into

flow regimes which provide better environmental

outcomes.

WATER RESOURCE MANAGEMENTWATER RESOURCE MANAGEMENTWATER RESOURCE MANAGEMENTWATER RESOURCE MANAGEMENTWATER RESOURCE MANAGEMENTSRW is responsible for managing diversions of

water from streams and aquifers and ensuring

sufficient supply is retained in these resources

to maintain and improve natural aquatic

ecosystems. The objective is to ensure that our

management of water resources is sustainable

and equitable and optimises the usage for

beneficial social, environmental and economic

outcomes.

SRW plays a key role in formulating streamflow

regimes in collaboration with other stakeholders,

through the ongoing development of Streamflow

Management Plans (SFMPs) which include the

establishment of appropriate environmental flows

for all stream conditions. SRW is developing

SFMPs for twelve priority streams in southern

Victoria.

In 2000/1 the Upper Latrobe and Upper Maribyr-

nong Plans were completed, adding to those

previously done for the Merri and Gellibrand

systems. Planning continued on the Avon and

Moorabool rivers. Progress on these was slow,

however, because of dry conditions and due to

strategies being developed to improve river

health without unacceptable impacts on agri-

cultural production. Work on both plans will

continue in 2001/2 and it is expected that planning

will begin in respect of the Barwon and Tarra

systems.

While SFMPs will be put in place to manage major

waterways there are many other streams that

have no plan in place but have significant

environmental and productive value. SRW has

capped any further diversions from summer flows

on all streams.

Our principal management strategies for rivers

in southern Victoria centre on control by formal

rostering and restriction programs which are

introduced progressively in response to changes

in flow conditions. These programs have been

well tested in the last four years and refinements

have been made to a number in order to ensure

equitable and practical supply conditions for

customers. Several of the programs have been

upgraded and some less formal

programs have been reviewed and

formalised in consultation with local

customer groups. In addition, monitor-

ing and alarm systems have been

strengthened to ensure compliance

with agreed environmental flows.

SRW is also working with the Govern-

ment and stakeholder groups to

implement Groundwater Management

Plans (GMPs) to protect and improve

the management of the resource. We

have established ten Groundwater

Supply Protection Areas (GSPAs)

across our region, for which GMPs are

completed, commenced or planned.

SRW has implemented the most

substantial monitoring program for

groundwater resources in the State,

incorporating metering of all licensed

irrigation bores in heavily committed

areas and the installation of two

hundred groundwater monitoring

bores.

GMPs are developed by a Ministerial

appointed committee made up of

representatives from such bodies as

DNRE, the relevant Catchment

Management Authority, the Australian

Drilling Industry Association, local

Shires, SRW and an equal number of

licence holders in the area. Generally

a licence holder has chaired the

committee.

GMPs have been completed for

Nullawarre and Yangery (East and West

of Warrnambool respectively), Wy Yung

near Bairnsdale and Sale and Denison

in central Gippsland. Plans have also

been commenced for Deutgam near

Werribee and Warrion near Colac. In

2001/2 planning will begin

for Condah in

the Hamilton area, Bungaree in the

Ballarat area, Wandin Yallock in the

Dandenongs and Koo-Wee-Rup.

Although this typical blue water meter looks fairly insignificant,

SRW has installed 1,030 such meters on groundwater bores

in GSPAs across our region during the last two years, at a

total cost of around $1.5 million. Metering of bores is a key

element of the Groundwater Management Planning Program

currently being undertaken to safeguard the long term

sustainability of groundwater in our region.

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CUSTOMER ANDCUSTOMER ANDCUSTOMER ANDCUSTOMER ANDCUSTOMER AND

COMMUNITY CONSULTATIONCOMMUNITY CONSULTATIONCOMMUNITY CONSULTATIONCOMMUNITY CONSULTATIONCOMMUNITY CONSULTATION

SRW is founded on a fundamental principle of

maximising customer influence on its operations,

particularly with regard to price and service

levels in their part of the business. This means

ensuring not only that our operations are open

and transparent, but also that we have structures

in place which make both transparency and

genuine customer influence a reality.

In order to give effect to this principle, we have

established a comprehensive process of cus-

tomer consultation. Each of our three irrigation

districts has its own Customer Consultative

Committee (CCC). These committees have been

encouraged by the Authority to develop a very

significant role in business planning and policy

development for each district. They play a key role

in the development of annual Business Plans and

pricing proposals for our Eastern Irrigation and

Western Irrigation businesses.

In the Licensing business SRW currently has

some 33 committees involved in the operation of

local stream or groundwater management areas,

or the preparation of Streamflow and Ground-

water Management Plans. To date their emphasis

has tended to be more local and these commit-

tees have become important vehicles for ensuring

that the management of their local systems has

regard to local views and is accepted by local

water user communities. As a precursor to the

establishment of a Licensing CCC, SRW has

established a high level Licensing Forum, which

has begun to address more strategic issues

relating to Surface water and Groundwater

management. It is expected that this Forum will

be translated into a CCC for the Licensing

Business during 2001/2.

In our Headworks business, whose customers are

predominantly the holders of bulk entitlements to

water harvested in our four major storage systems,

the focus has been on establishing strong bilateral

arrangements between SRW and individual

customers. This entails consideration of wide

ranging issues of significance and urgency, such

as drought planning, infrastructure development

and enhancement, and water quality.

Our various consultative committees involve more

than a hundred of our customers in an ongoing

round of consultation, feedback, advice and

recommendation. In addition, however, SRW also

utilises other processes to ensure that the Board,

management and staff are familiar with customer

and community issues, priorities and opinions.

These range from briefings on current topics to

the policy of regularly and frequently holding up

to half of each year’s formal Board meetings in

various locations across our region.

O u r v a r i o u s c o n s u l t a t i v eO u r v a r i o u s c o n s u l t a t i v e

O u r v a r i o u s c o n s u l t a t i v eO u r v a r i o u s c o n s u l t a t i v e

O u r v a r i o u s c o n s u l t a t i v e

c o m m i t t e e s i n v o l v e m o r e t h a nc o m m i t t e e s i n v o l v e m o r e t h a n

c o m m i t t e e s i n v o l v e m o r e t h a nc o m m i t t e e s i n v o l v e m o r e t h a n

c o m m i t t e e s i n v o l v e m o r e t h a n

a h u n d r e d o f o u r c u s t o m e r s i na h u n d r e d o f o u r c u s t o m e r s i n

a h u n d r e d o f o u r c u s t o m e r s i na h u n d r e d o f o u r c u s t o m e r s i n

a h u n d r e d o f o u r c u s t o m e r s i n

a n o n g o i n g r o u n d o fa n o n g o i n g r o u n d o f

a n o n g o i n g r o u n d o fa n o n g o i n g r o u n d o f

a n o n g o i n g r o u n d o f

c o n s u l t a t i o n , f e e d b a c k , a d v i c ec o n s u l t a t i o n , f e e d b a c k , a d v i c e

c o n s u l t a t i o n , f e e d b a c k , a d v i c ec o n s u l t a t i o n , f e e d b a c k , a d v i c e

c o n s u l t a t i o n , f e e d b a c k , a d v i c e

a n d r e c o m m e n d a t i o n . I na n d r e c o m m e n d a t i o n . I n

a n d r e c o m m e n d a t i o n . I na n d r e c o m m e n d a t i o n . I n

a n d r e c o m m e n d a t i o n . I n

a d d i t i o n , h o w e v e r , S R W a l s oa d d i t i o n , h o w e v e r , S R W a l s o

a d d i t i o n , h o w e v e r , S R W a l s oa d d i t i o n , h o w e v e r , S R W a l s o

a d d i t i o n , h o w e v e r , S R W a l s o

u t i l i s e s o t h e r p r o c e s s e s t ou t i l i s e s o t h e r p r o c e s s e s t o

u t i l i s e s o t h e r p r o c e s s e s t ou t i l i s e s o t h e r p r o c e s s e s t o

u t i l i s e s o t h e r p r o c e s s e s t o

e n s u r e t h a t t h e B o a r d ,e n s u r e t h a t t h e B o a r d ,

e n s u r e t h a t t h e B o a r d ,e n s u r e t h a t t h e B o a r d ,

e n s u r e t h a t t h e B o a r d ,

m a n a g e m e n t a n d s t a f f a r em a n a g e m e n t a n d s t a f f a r e

m a n a g e m e n t a n d s t a f f a r em a n a g e m e n t a n d s t a f f a r e

m a n a g e m e n t a n d s t a f f a r e

f a m i l i a r w i t h c u s t o m e r a n df a m i l i a r w i t h c u s t o m e r a n d

f a m i l i a r w i t h c u s t o m e r a n df a m i l i a r w i t h c u s t o m e r a n d

f a m i l i a r w i t h c u s t o m e r a n d

c o m m u n i t y i s s u e s , p r i o r i t i e sc o m m u n i t y i s s u e s , p r i o r i t i e s

c o m m u n i t y i s s u e s , p r i o r i t i e sc o m m u n i t y i s s u e s , p r i o r i t i e s

c o m m u n i t y i s s u e s , p r i o r i t i e s

a n d o p i n i o n s . T h e s e r a n g ea n d o p i n i o n s . T h e s e r a n g e

a n d o p i n i o n s . T h e s e r a n g ea n d o p i n i o n s . T h e s e r a n g e

a n d o p i n i o n s . T h e s e r a n g e

f r o m b r i e f i n g s o n c u r r e n tf r o m b r i e f i n g s o n c u r r e n t

f r o m b r i e f i n g s o n c u r r e n tf r o m b r i e f i n g s o n c u r r e n t

f r o m b r i e f i n g s o n c u r r e n t

t o p i c s t o t h e p o l i c y o f r e g u l a r l yt o p i c s t o t h e p o l i c y o f r e g u l a r l y

t o p i c s t o t h e p o l i c y o f r e g u l a r l yt o p i c s t o t h e p o l i c y o f r e g u l a r l y

t o p i c s t o t h e p o l i c y o f r e g u l a r l y

a n d f r e q u e n t l y h o l d i n g u p t oa n d f r e q u e n t l y h o l d i n g u p t o

a n d f r e q u e n t l y h o l d i n g u p t oa n d f r e q u e n t l y h o l d i n g u p t o

a n d f r e q u e n t l y h o l d i n g u p t o

h a l f o f e a c h y e a r ’ s f o r m a lh a l f o f e a c h y e a r ’ s f o r m a l

h a l f o f e a c h y e a r ’ s f o r m a lh a l f o f e a c h y e a r ’ s f o r m a l

h a l f o f e a c h y e a r ’ s f o r m a l

B o a r d m e e t i n g s i n v a r i o u sB o a r d m e e t i n g s i n v a r i o u s

B o a r d m e e t i n g s i n v a r i o u sB o a r d m e e t i n g s i n v a r i o u s

B o a r d m e e t i n g s i n v a r i o u s

l o c a t i o n s a c r o s s o u r r e g i o n .l o c a t i o n s a c r o s s o u r r e g i o n .

l o c a t i o n s a c r o s s o u r r e g i o n .l o c a t i o n s a c r o s s o u r r e g i o n .

l o c a t i o n s a c r o s s o u r r e g i o n .

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The Board’s custom on these occasions is to meet

with local customers or other stakeholders over

a meal on the evening prior to the meeting, in

order to informally discuss issues of the day and

to gain a clearer focus and understanding of local

conditions and of community and customer needs

and concerns. It is also the practice of the SRW

Board to follow all its monthly meetings, wherever

held, with tours of local farms, SRW infrastructure

or other relevant venues of interest.

SRW has more than 8,000 customers, the great

majority of whom are holders of groundwater or

surface water take-and-use licences, and who

are scattered widely across southern Victoria.

We also influence the daily lives of all the local

communities in our region. Communication and

real customer influence and participation can be

hard targets to achieve with such a diverse and

dispersed target group. It has been and remains

a priority for SRW, however, to ensure that our

customers and other stakeholders can

communicate their concerns and issues, and that

their opinions and priorities are properly

acknowledged and considered by the Board and

the Authority.

The local community has always taken a close interest in the

Lerderderg River system and its role in the harvesting of water

into Merrimu. The Lerderderg Open Day held in March 2001

gave more than 200 visitors the chance to view and learn about

the system more closely. One of the tour parties is seen here

at the Lerderderg weir.

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CHARTER AND PURPOSECHARTER AND PURPOSECHARTER AND PURPOSECHARTER AND PURPOSECHARTER AND PURPOSEThe Gi ppsl and and Sout her n Rur al Wat er Aut hor i t y, t r adi ng asSout hern Rural Wat er ( SRW) , was est abl i shed by Mi ni st er i al Orderon 1 Jul y 1995.

SRW i s an Aut hor i t y est abl i shed under t he Wat er Act 1989. I t i saccount abl e t o t he Mi ni st er f or Envi ronment and Conservat i on andi t s f ormal f unct i ons and powers are cont ai ned i n Sect i on 7 of t heWat er Act .

The busi ness act i vi t i es of SRW are out l i ned i n det ai l el sewhere i nt hi s Report .

SRW pr i mari l y servi ces t he rural communi t i es of sout hern Vi ct or i ai n a regi on whi ch encompasses t he ent i re St at e sout h of t he GreatDi vi de, wi t h t he except i on of met ropol i t an Mel bourne. Through i t sbul k wat er st orage operat i ons i t i ndi rect l y provi des wat er t o urbanusers i n Cent ral Gi ppsl and and t he dormi t ory communi t i es nort h westof Mel bourne. I t al so harvest s, st ores and del i vers as requi red bul kwat er t o maj or power generat i ng compani es i n t he Lat robe Val l eyand t o t wo pr i vat el y owned hydro-el ect r i c power st at i ons l ocat edon SRW st or ages.

MANAGEMENT AND STRUCTUREMANAGEMENT AND STRUCTUREMANAGEMENT AND STRUCTUREMANAGEMENT AND STRUCTUREMANAGEMENT AND STRUCTURESRW is governed by a Board of nine members appointed by theMinister for a three year term expiring on 30 June 2001.

The Chairman is Mr Allan J Pappin CVO AM and the Deputy Chairmanis Dr Greg Walsh.

The other members are: Mr Geoff Crick, Mr Patrick Foster, Mr DavidKoch, Mrs Joan Liley, Mrs Jennifer McMillan, Mr John Nicol OAM,Mr John Tilleard.

The Chairman of the Audit Committee is Mr Patrick Foster. Themembers of the Audit Committee are Mrs Liley and Mr Crick.

The Chief Executive is Dr Martin Kent.

SRW is organised into four principal operating businesses and aCorporate group. The four businesses are; Eastern Irrigation,Headworks, Licensing and Western Irrigation.

The Director Business Services is Mr Geoff Barry. Mr Graham Hawkeis the Director Technical Services and the Business ManagerLicensing. Mr Pat Caruso is the Business Manager Headworks andBusiness Manager Western Irrigation. Mr Matthew Youell is theBusiness Manager Eastern Irrigation.

The structure of the Authority and the principal functions undertakenby each unit are shown in the Organisational Chart which appearselsewhere in this Report.

FINANCIAL AND OTHER INFORMATIONFINANCIAL AND OTHER INFORMATIONFINANCIAL AND OTHER INFORMATIONFINANCIAL AND OTHER INFORMATIONFINANCIAL AND OTHER INFORMATIONOn 30 June 2001, which was the reference date for collection ofworkforce statistics, SRW employed 103 permanent and 3 temporarystaff. The following chart summarises relevant workforce data for2000/1 with comparative figures for 1999/2000 and 1998/9:

F E MAL EF E MAL EF E MAL EF E MAL EF E MAL E

CAT E GORYCAT E GORYCAT E GORYCAT E GORYCAT E GORY 2000/ 12000/ 12000/ 12000/ 12000/ 1 1999/ 01999/ 01999/ 01999/ 01999/ 0 1998/ 91998/ 91998/ 91998/ 91998/ 9Permanent Full Time 10 9 9Permanent Part Time 2 2 2Temporary Full Time 1 1 1Temporary Part Time - - 1TOTALTOTALTOTALTOTALTOTAL 1313131313 1212121212 1313131313

MALEMALEMALEMALEMALE

CATEGORYCATEGORYCATEGORYCATEGORYCATEGORY 2000/12000/12000/12000/12000/1 1999/01999/01999/01999/01999/0 1998/91998/91998/91998/91998/9Permanent Full Time 89 86 81Permanent Part Time 2 2 2Temporary Full Time 1 2 2Temporary Part Time 1 - 1TOTALTOTALTOTALTOTALTOTAL 9393939393 9090909090 8686868686

TOTALTOTALTOTALTOTALTOTAL

CATEGORYCATEGORYCATEGORYCATEGORYCATEGORY 2000/12000/12000/12000/12000/1 1999/01999/01999/01999/01999/0 1998/91998/91998/91998/91998/9Permanent Full Time 99 95 90Permanent Part Time 4 4 4Temporary Full Time 2 3 3Temporary Part Time 1 - 2TOTALTOTALTOTALTOTALTOTAL 106106106106106 102102102102102 9999999999

All appointments to positions in 2000/1 were undertaken on the basisof merit and equity principles.

Five requests were received in 2000/1 for access to documents underthe provisions of the Freedom of Information Act 1982. Three of theseresulted in release of the requested documents and one in partialrelease (deletion of certain information). Partial release was alsooffered in respect of the fifth application but this was rejected by

the applicant. As a result of subsequent review by VCAT of those decisions, thedecision of partial access was confirmed. An application incomplete at 1 July 2000was determined by VCAT, with partial access being agreed by consent.

Members of the public may access the documents of SRW, subject to the provisionsof the Freedom of Information Act 1982, by applying in writing to the FOI Officer ofthe Authority. Published information is available from the Head Office at 88 JohnsonStreet Maffra, between 8.00 am and 4.45 pm Monday - Friday excepting publicholidays. The FOI Officer is Mr Geoff Barry.

During 2000/1 SRW complied with the building and maintenance provisions of theBuilding Act 1993. Consultants are engaged to manage Certificate of Occupancyconditions for the Maffra head office.

SRW operates on a full cost recovery basis in accordance with National CompetitionPolicy. Prices are set in collaboration and consultation with customers to ensurethat all costs of operation are met, together with a provision for replacement ofassets used in provision of the supply or services provided. SRW is in the processof implementing a Tax Equivalent regime as the next step in Competition Policycompliance.

SRW manages its OHS responsibilities in accordance with the provisions of relevantlegislation, through two regional OHS Committees and a comprehensive network ofworkplace safety representatives. The following statistics summarise OHSperformance during 2000/1.

PARTICULARSPARTICULARSPARTICULARSPARTICULARSPARTICULARS 2000/12000/12000/12000/12000/1 1999/01999/01999/01999/01999/0

NUMBER OF LOST TIME INJURIES

........................... 7 5

TOTAL LOST TIME ( h o u r s )

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

492 772NUMBER OF NO LOST TIME INJURIES( M e d i c a l e x p e n s e s o n l y )

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5 11NUMBER OF INCIDENTS/NEAR MISSES

................. 21 15

Continuous improvement in OHS performance has resulted in SRW achieving a netdecrease in its Workcover premiums for 2001/2.

RELATED PARTY INFORMATIONRELATED PARTY INFORMATIONRELATED PARTY INFORMATIONRELATED PARTY INFORMATIONRELATED PARTY INFORMATIONRelated Party Information appears as note 25 “ Responsible Persons Disclosure” inthe financial statements section of this Report.

DIRECTIONS OF THE MINISTER FORDIRECTIONS OF THE MINISTER FORDIRECTIONS OF THE MINISTER FORDIRECTIONS OF THE MINISTER FORDIRECTIONS OF THE MINISTER FOR

ENVIRONMENT AND CONSERVATIONENVIRONMENT AND CONSERVATIONENVIRONMENT AND CONSERVATIONENVIRONMENT AND CONSERVATIONENVIRONMENT AND CONSERVATIONOn 28 July 2000 the Minister for Environment and Conservation directed that theAuthority transfer and surrender to the Crown all the freehold land purchased forthe proposed Mitchell River dam. The intention of the direction is to enable the landto be incorporated into the Mitchell River National Park.

As at 30 June 2001, the transfer processes were incomplete and so the land remainsas an asset in the books of account of the Authority as at that date.

DIRECTIONS OF THE MINISTER FOR FINANCEDIRECTIONS OF THE MINISTER FOR FINANCEDIRECTIONS OF THE MINISTER FOR FINANCEDIRECTIONS OF THE MINISTER FOR FINANCEDIRECTIONS OF THE MINISTER FOR FINANCEThe information in this section has been provided to comply with those requirementsof Part 9 of the Directions of the Minister for Finance under the Financial Manage-ment Act 1994, which have not been already met elsewhere in this Annual Report.

Additionally, in accordance with section 9.1.3(ii)(I) of the Directions, informationlisted in section 9.1.3(iv) thereof has been prepared and is available to the relevantMinister, Members of Parliament and the public on request.

BULK ENTITLEMENTSBULK ENTITLEMENTSBULK ENTITLEMENTSBULK ENTITLEMENTSBULK ENTITLEMENTSThe following information is provided in accordance with section 16.3 of the BulkThe following information is provided in accordance with section 16.3 of the BulkThe following information is provided in accordance with section 16.3 of the BulkThe following information is provided in accordance with section 16.3 of the BulkThe following information is provided in accordance with section 16.3 of the BulkEntitlement (Latrobe - Southern Rural) Conversion Order 1996.Entitlement (Latrobe - Southern Rural) Conversion Order 1996.Entitlement (Latrobe - Southern Rural) Conversion Order 1996.Entitlement (Latrobe - Southern Rural) Conversion Order 1996.Entitlement (Latrobe - Southern Rural) Conversion Order 1996.

– at 30 June 2001 Blue Rock reservoir contained 154,694 ML of water. This is 74.3% ofthe capacity of the reservoir (208,188 ML)

– at 30 June 2001 the amount of water in the Authority’s share of Blue Rock reservoirwas 4,065 ML or 1.95% of the total capacity.

– the annual amount of water taken by licence holders from the system waterwaywas:

– upstream of Yallourn weir 23 ML;

– downstream of Yallourn weir 4,511 ML.

– the amount of annual losses debited to the Authority’s share of Blue Rock reservoirwas 33 ML.

– the amount of internal spill of water into the Authority’s share of storage in BlueRock was nil.

– there were no periods of rationing for any licence holders during 2000-2001.

– The Authority has provided for passing flow requirements as specified in the BulkEntitlement Order for most of the year, but there were several occasions where therequirement was not maintained.

– there were no temporary or permanent transfers of all or part of the bulkentitlement.

– there was no bulk entitlement or licence in respect of the system waterwaytemporarily or permanently transferred to the Authority.

– there was no amendment to this Bulk Entitlement. Modelling is continuing,however, to confirm natural flow indicators and to review passing flowrequirements, in particular at Sale.

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– there were no amounts supplied to any licence holders other than those specifiedin Schedule 1 of the Order.

– The Authority met the passing flow requirements 98.1% of the time. There hasbeen no other failure of which the Authority is aware to comply with any provisionof the bulk entitlement.

– Difficulties were experienced by the Authority in relation to:

– modified natural flow indicators at designated passing points. Modelling offlows is under review by DNRE.

The following information is published in accordance with section 12.3 of the BulkThe following information is published in accordance with section 12.3 of the BulkThe following information is published in accordance with section 12.3 of the BulkThe following information is published in accordance with section 12.3 of the BulkThe following information is published in accordance with section 12.3 of the BulkEntitlement (Yallourn Energy for Gippsland and Southern Rural Water Authority)Entitlement (Yallourn Energy for Gippsland and Southern Rural Water Authority)Entitlement (Yallourn Energy for Gippsland and Southern Rural Water Authority)Entitlement (Yallourn Energy for Gippsland and Southern Rural Water Authority)Entitlement (Yallourn Energy for Gippsland and Southern Rural Water Authority)

Conversion Order 1996.Conversion Order 1996.Conversion Order 1996.Conversion Order 1996.Conversion Order 1996.

– The annual amount of water designated as taken by the Authority from thewaterway at its pumping station was 16,119 ML.

– In accordance with clause 11.4, the Authority has a network of metering installedwithin its low quality water system that enables it to determine the low qualitywater usage by both the Loy Yang A and Loy Yang B power stations. Theequipment is checked monthly for validity and annually for signal integrity.

– there were no temporary or permanent transfers of all or part of the bulkentitlement.

– there was no bulk entitlement or licence in respect of the system waterwaytemporarily or permanently transferred to the Authority.

– there was no amendment to this bulk entitlement.

– there has been no failure of which the Authority is aware to comply with anyprovision of the bulk entitlement.

– there are no existing or anticipated difficulties experienced by the Authority incomplying with the bulk entitlement.

The following information is provided in accordance with section 20.3 of the BulkThe following information is provided in accordance with section 20.3 of the BulkThe following information is provided in accordance with section 20.3 of the BulkThe following information is provided in accordance with section 20.3 of the BulkThe following information is provided in accordance with section 20.3 of the BulkEntitlement (Thomson/Macalister - Southern Rural Water) Conversion Order 2001.Entitlement (Thomson/Macalister - Southern Rural Water) Conversion Order 2001.Entitlement (Thomson/Macalister - Southern Rural Water) Conversion Order 2001.Entitlement (Thomson/Macalister - Southern Rural Water) Conversion Order 2001.Entitlement (Thomson/Macalister - Southern Rural Water) Conversion Order 2001.

– at 30 June the status of SRW’s entitlement in Thomson Reservoir was;

– Releases made from Thomson Reservoir to supply primary entitlements were8,583 ML.

– The volume of SRW’s share of storage capacity under clause 9 was 8,245 ML.

– The volume of inflows attributed to SRW under clauses 10.1 and 10.2 was 11,976ML.

– the annual amounts of water taken by SRW from the waterway were:

– Main Northern Channel 55,556 ML

– Main Southern Channel 117,310 ML

– Main Eastern Channel 34,397 ML;

– Cowwarr Channel 17,045 ML.

– The volume of water held in Lake Glenmaggie at 30 June 2001 was 32,118 ML.

– The annual amount of water taken by the primary entitlement holders under thisorder was 173,048 ML.

– There were no credits granted under clause 17 of the order.

– There were no temporary or permanent transfers of a bulk entitlement or any otherentitlement to SRW.

– There were no alterations made to Schedules 1 or 2 under sub-clause 8.1 of theorder.

– Permanent transfers of primary entitlements took place as follows:

– MID to MID — 2 transfers totalling 60.0 ML

– River to River — 2 transfers totalling 65.0 ML

– MID to River — 2 transfers totalling 88.0 ML

– Temporary transfers of primary entitlements took place as follows:

– MID to MID — 76 transfers totalling 2,818.8 ML

– River to MID — 2 transfers totalling 120.0 ML

– River to River — 6 transfers totalling 488.6 ML

– MID to River — 6 transfers totalling 498.0 ML

– There were no amendments to this Bulk Entitlement.

– There were no new bulk entitlements granted to SRW with respect to the supply ofprimary entitlements under this order.

– There has been no program approved under sub-clause 18.2 to date.

– There has been no program approved under sub-clause 19.3 to date.

– There has been no other failure of which the Authority is aware to comply with anyprovision of the bulk entitlement other than the maintenance of environmentalflows on the Thomson River. On isolated occasions during the year flows droppedbelow the minimum and remedial action was required.

– Difficulties were experienced by the Authority in relation to environmental flows asindicated above. Remedial action has included improvements to procedures,additional monitoring of the river and modifications to the Thomson river Siphonoutfall to maintain flows at that point.

The following information is published in accordance with section 18.1 of the BulkThe following information is published in accordance with section 18.1 of the BulkThe following information is published in accordance with section 18.1 of the BulkThe following information is published in accordance with section 18.1 of the BulkThe following information is published in accordance with section 18.1 of the BulkEntitlement (Werribee System - Irrigation) Conversion Order 1997.Entitlement (Werribee System - Irrigation) Conversion Order 1997.Entitlement (Werribee System - Irrigation) Conversion Order 1997.Entitlement (Werribee System - Irrigation) Conversion Order 1997.Entitlement (Werribee System - Irrigation) Conversion Order 1997.

– There have been no transfers from Merrimu Reservoir to Melton Reservoir.

– Water taken from:

– Bacchus Marsh Diversion Weir — 4,481 ML

– Werribee Diversion Weir — 12,906 ML

– Maddingley Pumps — 0 ML

– Volume of water taken from the waterway by primary entitlement holders includingoutfalls:

– Bacchus Marsh — 3,849.6 ML

– Werribee — 10,729.8 ML

– River Diverters — 455.8 ML

– Myrniong — 47 ML

– There have been no internal spills.

– As at 30 June 2001 capacity shares were :

– Western Water — 13,808 ML

– SRW — 2,915 ML

– Unallocated — 4,699 ML

– Share of passing flows:

– Western Water — 219 ML

– SRW — 73 ML

– Unallocated — 73 ML

– SRW has not received any credits. For the year 2000/1 a total of 377.7 ML wasreturned to the system waterway via the main channel outfall.

– Seven (7) temporary transfers have taken place as follows:

– 856.6 ML SRW (BMID) to Western Water (Merrimu Reservoir).

– 150.0 ML SRW (WID) to Western Water (Merrimu Reservoir.

– No transfers to SRW have taken place.

– No restrictions were implemented in 2000/1. Initial allocation on 1 July 2000 was100% of water right, from October 120%, from December 150%, from February 2001175% and from April 200% allocation.

– There are no changes to Schedule 1

– There are no changes to schedule 2.

– Permanent Transfers:

– 2 Transfer, 45.7 ML, WID to WID

– 1 Transfer, 86.0 ML, River to River.

– Temporary Transfers:

– 8 Transfers, 116.2 ML, from BMID to BMID.

– 44 Transfers, 1,194.8 ML, from WID to WID.

– 4 Transfers, 76.4 ML, from BMID to WID.

– 5 Transfers, 190.7 ML, from WID to Werribee River.

– 1 Transfer, 13.0 ML, from Werribee River to WID.

– 2 Transfers, 55.0 ML, from Werribee River to Werribee River.

– 1 Transfer, 150 ML, from WID to Merrimu

– 6 Transfers, 856.6 ML, from BMID to Merrimu.

– The annual volume supplied to:

– Bacchus Marsh — 3,471.9 ML

– Werribee — 10,457.7 ML

– There are no amendments to this Bulk Entitlement order.

– There have been no new Bulk Entitlements granted.

– No environmental management programs have been implemented at this stage.SRW has continued with the same metering program as before the BulkEntitlement was signed. Some sites have been upgraded with new equipment.

– SRW has provided as far as possible for passing flow requirements as specified inthe Bulk Entitlement order.

– At present SRW has experienced no significant difficulties to date in complyingwith the Bulk Entitlement.

The following information is published in accordance with section 18.1 of the BulkThe following information is published in accordance with section 18.1 of the BulkThe following information is published in accordance with section 18.1 of the BulkThe following information is published in accordance with section 18.1 of the BulkThe following information is published in accordance with section 18.1 of the BulkEntitlement (Maribyrnong - Southern Rural Water) Conversion Order 1999.Entitlement (Maribyrnong - Southern Rural Water) Conversion Order 1999.Entitlement (Maribyrnong - Southern Rural Water) Conversion Order 1999.Entitlement (Maribyrnong - Southern Rural Water) Conversion Order 1999.Entitlement (Maribyrnong - Southern Rural Water) Conversion Order 1999.

– 222 ML was released to supply licence entitlements.

– SRW’s share of Rosslynne Reservoir at 30 June 2001 was 249 ML.

– Taking into account evaporation and measurement discrepancies SRW hadinflows of 415 ML.

– SRW allowed up to 50% for transfer and operating losses.

– SRW has had 19 ML deducted for passing flow requirements.

– SRW has provided as far as possible for passing flow requirements as detailed inthe Bulk Entitlement order.

– Primary entitlement holders have taken 119.7 ML from the waterway.

– There have been no temporary or permanent transfers from this Bulk Entitlement.

– A total of 270.3 ML was transferred from Western Water’s Macedon system intotheir share of Rosslynne Reservoir.

– There have been no alterations to Schedule 1 or 2 of this Bulk Entitlement.

– There has been 1 Temporary Transfer within the system of 38 Ml.

– There have been no amendments to this Bulk Entitlement.

– There have been no new Bulk Entitlements granted.

– No environmental management programs have been implemented at this stage.SRW has continued with the same metering program as before the BulkEntitlement was signed. Some sites have been upgraded with new equipment.

– To SRW’s knowledge it has not failed to comply with any provisions of the BulkEntitlement.

– SRW has experienced no significant difficulties to date in complying with the BulkEntitlement.

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TABLE 1.1: PERMANENT TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYTABLE 1.1: PERMANENT TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYTABLE 1.1: PERMANENT TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYTABLE 1.1: PERMANENT TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYTABLE 1.1: PERMANENT TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYDURING YEAR ENDED 30 JUNE 2001

TRANSFERS FROM AND TO DISTRICTS/AREAS AND WATERWAYS WITHIN SOUTHERN RURAL WATERTRANSFERS FROM AND TO DISTRICTS/AREAS AND WATERWAYS WITHIN SOUTHERN RURAL WATERTRANSFERS FROM AND TO DISTRICTS/AREAS AND WATERWAYS WITHIN SOUTHERN RURAL WATERTRANSFERS FROM AND TO DISTRICTS/AREAS AND WATERWAYS WITHIN SOUTHERN RURAL WATERTRANSFERS FROM AND TO DISTRICTS/AREAS AND WATERWAYS WITHIN SOUTHERN RURAL WATER

Macalister Werribee Bacchus Marsh Thomson River Maribyrnong Werribee River Other

TO FROM District District District Waterway River Waterway Waterway Waterways

Totals

DISTRICTDISTRICTDISTRICTDISTRICTDISTRICT No. ML No. ML No. ML No. ML No. ML No. ML No. ML No. ML

Macalister

.............................. 2 60.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 1 14.0 3 74.0

Werribee ................................. 0 0.0 2 45.7 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 2 45.7

Bacchus Marsh

..................... 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0

WATERWAYSWATERWAYSWATERWAYSWATERWAYSWATERWAYS

Thomson River ....................... 1 50.0 0 0.0 0 0.0 2 98.0 0 0.0 0 0.0 1 40.0 4 188.0

Macalister River

................... 1 38.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 1 38.0

Maribyrnong River

................ 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0

Werribee River

...................... 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 1 86.0 0 0.0 1 86.0

Other

........................................ 0 0.0 0 0.0 0 0.0 1 5.0 0 0.0 0 0.0 8 245.5 9 250.5

Totals ....................................... 4

148.0 2 45.7 0 0.0 3 103.0 0 0.0 1 86.0 10 299.5 20 682.2

TABLE 2 TEMPORARY TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYTABLE 2 TEMPORARY TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYTABLE 2 TEMPORARY TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYTABLE 2 TEMPORARY TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYTABLE 2 TEMPORARY TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYDURING YEAR ENDED 30 JUNE 2001

SUMMARYSUMMARYSUMMARYSUMMARYSUMMARYTotal transfers from other Total transfers to other Total transfers from Total transfers to Net increase/

districts/areas and districts/areas and districts/areas and districts/areas and decrease for

Internal transfers within waterways within waterways within waterways of other waterways of other district/area

District/area or waterway district/area or waterway Southern Rural Water Southern Rural Water Water Authorities Water Authorities or waterway

DISTRICTSDISTRICTSDISTRICTSDISTRICTSDISTRICTS No. ML No. ML No. ML No. ML No. ML ML

Macalister

....................................... 73 2802.0 6 204.0 6 348.0 0 0.0 0 0.0 -144.0

Werribee .......................................... 31 964.6 11 945.8 4 160.0 0 0.0 0 0.0 785.8

Bacchus Marsh

.............................. 3 75.0 0 0.0 10 932.8 0 0.0 0 0.0 -932.8


Thomson River

................................ 4 581.0 3 261.0 5 119.0 0 0.0 0 0.0 142.0

Maribyrnong River

......................... 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0.0

Werribee River

............................... 1 5.0 4 160.0 1 13.0 0 0.0 0 0.0 147.0

Other

................................................. 15 985.0 8 624.0 6 622.0 0 0.0 0 0.0 2.0

Totals ................................................ 127

5412.6 32 2194.8 32 2194.8 0 0.0 0 0.0 0.0

TABLE 2.1: TEMPORARY TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYTABLE 2.1: TEMPORARY TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYTABLE 2.1: TEMPORARY TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYTABLE 2.1: TEMPORARY TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYTABLE 2.1: TEMPORARY TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYDURING YEAR ENDED 30 JUNE 2001

TRANSFERS FROM AND TO DISTRICTS/AREAS AND WATERWAYS WITHIN SOUTHERN RURAL WATERTRANSFERS FROM AND TO DISTRICTS/AREAS AND WATERWAYS WITHIN SOUTHERN RURAL WATERTRANSFERS FROM AND TO DISTRICTS/AREAS AND WATERWAYS WITHIN SOUTHERN RURAL WATERTRANSFERS FROM AND TO DISTRICTS/AREAS AND WATERWAYS WITHIN SOUTHERN RURAL WATERTRANSFERS FROM AND TO DISTRICTS/AREAS AND WATERWAYS WITHIN SOUTHERN RURAL WATER

Macalister Werribee Bacchus Marsh Thomson River Maribyrnong Werribee River Other

TO FROM District District District Waterway River Waterway Waterway Waterways

Totals

DISTRICTDISTRICTDISTRICTDISTRICTDISTRICT No. ML No. ML No. ML No. ML No. ML No. ML No. ML No. ML

Macalister

.............................. 73 2802.0 0 0.0 0 0.0 4 79.0 0 0.0 0 0.0 2 125.0 79 3006.0

Werribee ................................. 0 0.0 31

964.6 10 932.8 0 0.0 0 0.0 1 13.0 0 0.0 42 1910.4

Bacchus Marsh

..................... 0 0.0 0 0.0 3 75.0 0 0.0 0 0.0 0 0.0 0 0.0 3 75.0


Thomson River ....................... 3 261.0 0 0.0 0 0.0 4 581.0 0 0.0 0 0.0 0 0.0 7 842.0

Maribyrnong River

................ 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0

Werribee River

...................... 0 0.0 4 160.0 0 0.0 0 0.0 0 0.0 1 5.0 0 0.0 5 165.0

Other

........................................ 3 87.0 0 0.0 0 0.0 1 40.0 0 0.0 0 0.0 19 1482.0 23 1609.0

Totals ....................................... 79

3150.0 35 1124.6 13 1007.8 9 700.0 0 0 2 18 21 1607 159 7607.4

TABLE 1: PERMANENT TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYTABLE 1: PERMANENT TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYTABLE 1: PERMANENT TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYTABLE 1: PERMANENT TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYTABLE 1: PERMANENT TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITYDURING YEAR ENDED 30 JUNE 2001

SUMMARYSUMMARYSUMMARYSUMMARYSUMMARYTotal transfers from other Total transfers to other Total transfers from Total transfers to Net increase/

districts/areas and districts/areas and districts/areas and districts/areas and decrease for

Internal transfers within waterways within waterways within waterways of other waterways of other district/area

District/area or waterway district/area or waterway Southern Rural Water Southern Rural Water Water Authorities Water Authorities or waterway

DISTRICTSDISTRICTSDISTRICTSDISTRICTSDISTRICTS No. ML No. ML No. ML No. ML No. ML ML

Macalister

....................................... 2 60.0 1 14.0 2 88.0 0 0.0 0 0.0 -74.0

Werribee .......................................... 2 45.7 0 0.0 0 0.0 0 0.0 0 0.0 0.0

Bacchus Marsh

.............................. 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0.0


Thomson River

................................ 2 98.0 2 90.0 1 5.0 0 0.0 0 0.0 85.0

Macalister River

............................ 0 0.0 1 38.0 1 14.0 0 0.0 0 0.0 24.0

Latrobe River

.................................. 2 51.0 0 0.0 0 0.0 0 0.0 0 0.0 0.0

Maribyrnong River

......................... 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0.0

Werribee River

............................... 1 86.0 0 0.0 0 0.0 0 0.0 0 0.0 0.0

Other

................................................. 6 194.5 1 5.0 1 40.0 0 0.0 0 0.0 -35.0

Totals ................................................ 15

535.2 5 147.0 5 147.0 0 0.0 0 0.0 0.0

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Total

Gross supply

water rights at offtakes Under Users

alloted to (excl. volume water rights/ outside

Total Usage under

District and passed to domestic

Total district from delivered entitlements Total

District/Area or Waterway diversion other & stock Sales of delivered district from and stock Sales irrigation

(District) licences Districts) allowance water in district channels district & domestic usage usage

ML ML ML ML ML ML ML ML ML

Macalister

....................................... 117044.4 224308.0 117307.0 34232.0 151539.0 0.0 151539.0 0.0 0.0 151539.0

Werribee ..........................................

9344.6 14405.9 8445.0 2012.7 10457.7 0.0 10457.7 0.0 0.0 10457.7

Bacchus Marsh

.............................. 3692.4 6667.6 2520.7 608.9 3129.6 342.3 3471.9 0.0 0.0 3471.9

Gippsland Diverters .......

................ 94196.9 0.0 0.0 0.0 0.0 0.0 0.0 29990.9 7413.4 37404.3

Maribyrnong System

..................... 1971.2 1109.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Werribee System

........................... 1598.6 0.0 0.0 0.0 0.0 0.0 0.0 593.3 123.5 716.8

Bunyip/Tarago System

.................. 12549.5 0.0 0.0 0.0 0.0 0.0 0.0 2160.8 399.8 2560.6

Other

................................................. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1297.1 9.0 1306.1

Totals ................................................

240397.6 246490.5 128272.7 36853.6 165126.3 342.3 165468.6 34042.1 7945.7 207456.4

Users in DistrictUsers in DistrictUsers in DistrictUsers in DistrictUsers in District Diversions fromDiversions fromDiversions fromDiversions fromDiversions from

rivers, streams, lakesrivers, streams, lakesrivers, streams, lakesrivers, streams, lakesrivers, streams, lakes

and main channelsand main channelsand main channelsand main channelsand main channels

TABLE 4: PRIVATE DIVERSIONS FROM WATERWAYSTABLE 4: PRIVATE DIVERSIONS FROM WATERWAYSTABLE 4: PRIVATE DIVERSIONS FROM WATERWAYSTABLE 4: PRIVATE DIVERSIONS FROM WATERWAYSTABLE 4: PRIVATE DIVERSIONS FROM WATERWAYSAS AT 30 JUNE 2001

REGULATEDREGULATEDREGULATEDREGULATEDREGULATEDIrrigationIrrigationIrrigationIrrigationIrrigation Stock & DomesticStock & DomesticStock & DomesticStock & DomesticStock & Domestic OtherOtherOtherOtherOther TotalTotalTotalTotalTotal

Authorised Authorised Authorised Authorised Authorised

Drainage Basin Licence Volume Area Licence Volume Licence Volume Volume

No. ML HA No. ML No. ML ML

BUNYIP RIVER

.......................................................................... 85 4677.5 721.1 122 311.8 30 153.4 5142.7

LATROBE RIVER

....................................................................... 89 11121.8 1860.5 17 44.0 8 20046.4 31212.2

LATROBE RIVER TRIBUTARIES

............................................. 0 0.0 0.0 1 4.4 0 0.0 4.4

MARIBYRNONG RIVER

........................................................... 8 222.6 38.7 7 15.4 3 6.6 244.6

MOORABOOL RIVER

................................................................ 66 1337.8 180.2 13 30.4 9 2288.3 3656.5

THOMSON COWWARR CHANNEL

....................................... 3 332.0 87.5 1 66.0 1 2.2 400.2

THOMSON MACALISTER

....................................................... 48 3572.2 624.9 18 42.1 5 3383.8 6998.1

THOMSON RIVER

..................................................................... 133 16594.1 2759.8 20 46.2 11 35.2 16675.5

WERRIBEE RIVER

.................................................................... 36 940.9 308.6 38 109.8 11 119.8 1170.5

Total

............................................................................................ 468 38798.9 6581.3 237 670.0 78 26035.7 65504.65

UNREGULATEDUNREGULATEDUNREGULATEDUNREGULATEDUNREGULATEDIrrigationIrrigationIrrigationIrrigationIrrigation Stock & DomesticStock & DomesticStock & DomesticStock & DomesticStock & Domestic OtherOtherOtherOtherOther TotalTotalTotalTotalTotal

Authorised Authorised Authorised Authorised Authorised

Drainage Basin Licence Volume Area Licence Volume Licence Volume Volume

No. ML HA No. ML No. ML ML

AVON RIVER

.............................................................................. 66 6129.7 1020.1 15 33.0 7 188.4 6351.1

BEMM RIVER

............................................................................ 12 715.0 135.6 5 17.6 5 11.0 743.6

BUNYIP RIVER

.......................................................................... 252 7872.0 810.2 168 441.8 62 240.6 8554.4

BUNYIP RIVER WEIRS

............................................................ 1 6.0 2.0 0 0.0 0 0.0 6.0

GLENELG RIVER

....................................................................... 15 940.2 120.2 28 68.2 8 20.0 1028.4

HOPKINS RIVER

....................................................................... 121 9763.8 1676.1 31 77.5 19 127.8 9969.1

LAKE COLAC

............................................................................. 17 835.3 130.6 3 6.6 4 62.2 904.1

LATROBE RIVER

....................................................................... 20 539.5 46.7 12 30.8 8 100.8 671.1

LATROBE RIVER TRIBUTARIES

............................................. 417 15807.6 3912.7 116 325.8 123 1190.6 17324.0

MARIBYRNONG RIVER

........................................................... 56 1748.6 164.5 56 205.6 15 35.3 1989.5

MITCHELL RIVER

..................................................................... 145 12670.7 2122.0 56 154.0 16 50.6 12875.3

MITCHELL RIVER TRIBUTARIES

........................................... 47 1906.2 322.5 16 37.4 9 78.4 2022.0

MOORABOOL RIVER

................................................................ 59 1572.7 405.3 12 28.6 6 107.6 1708.9

NICHOLSON RIVER

.................................................................. 1 24.0 4.0 7 15.4 1 2.2 41.6

OTWAY SYSTEM

...................................................................... 168 7778.7 1180.1 105 255.2 77 1124.3 9158.2

PORTLAND

................................................................................ 26 1130.9 202.1 17 37.4 8 25.4 1193.7

SNOWY RIVER

.......................................................................... 27 2537.8 447.0 8 17.6 1 4.4 2559.8

SNOWY RIVER TRIBUTARIES

................................................ 16 1211.5 195.5 9 26.4 5 26.4 1264.3

SOUTH GIPPSLAND

................................................................ 219 9892.3 1712.7 263 759.0 263 926.0 11577.3

TAMBO RIVER

........................................................................... 15 702.2 115.3 30 68.2 9 58.6 829.0

TAMBO RIVER LOWER

............................................................ 35 2770.2 451.2 19 60.2 3 8.8 2839.2

TAMBO RIVER TRIBUTARIES

................................................ 19 259.7 74.0 22 70.5 9 25.9 356.1

THOMSON MACALISTER

....................................................... 75 4369.0 731.5 15 37.4 10 67.7 4474.1

THOMSON RIVER

..................................................................... 25 3041.4 409.3 8 17.6 1 4.4 3063.4

WERRIBEE RIVER

.................................................................... 21 657.7 69.7 14 30.8 5 195.4 883.9

WESTERN PORT BAY TRIBUTARIES

.................................... 3 462.7 0.0 0 0.0 1 2.2 464.9

YARRA RIVER

............................................................................ 1 7.4 1.2 1 2.2 0 0.0 9.6

Total

............................................................................................ 1879 95352.7 16462.1 1036 2824.8 675 4684.9 102862.5

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S TABLE 5: GROUNDWTABLE 5: GROUNDWTABLE 5: GROUNDWTABLE 5: GROUNDWTABLE 5: GROUNDWAAAAATER EXTRACTIONS AS ATER EXTRACTIONS AS ATER EXTRACTIONS AS ATER EXTRACTIONS AS ATER EXTRACTIONS AS AT 30 JUNE 2001T 30 JUNE 2001T 30 JUNE 2001T 30 JUNE 2001T 30 JUNE 2001

IrrigationIrrigationIrrigationIrrigationIrrigation OtherOtherOtherOtherOther TTTTTotalotalotalotalotal

Authorised Authorised Authorised Authorised

Groundwater Management Areas Licences Volume Area Licences Volume Volume

BUNGAREE ................................................................................ 84 4719.9 1436.6 6 268.5 4988.4

CONDAH .................................................................................... 31 5931.1 930.0 4 97.4 6028.5

CORINELLA ............................................................................... 2 73.0 13.0 12 395.6 468.6

CUT PAW PAW ......................................................................... 2 169.0 28.0 1 342.0 511.0

DENISON ................................................................................... 67 12757.0 2037.7 58 753.8 13510.8

DEUTGAM ................................................................................. 144 5003.7 1553.2 4 539.5 5543.2

FRANKSTON ............................................................................. 24 891.2 267.9 6 247.1 1138.3

GERANGAMETE ....................................................................... 0 0.0 0.0 1 8000.0 8000.0

GIFFARD 2 .................................................................................. 0 0.0 0.0 1 4.0 4.0

GIFFARD ..................................................................................... 1 1440.0 240.0 0 0.0 1440.0

GIFFARD 1 .................................................................................. 12 4330.4 795.0 2 52.0 4382.4

GLENORMISTON ...................................................................... 11 2292.1 366.4 24 106.3 2398.4

HEYWOOD ................................................................................. 53 5154.2 945.4 35 262.1 5416.3

JAN JUC .................................................................................... 0 0.0 0.0 1 4000.0 4000.0

KOO WEE RUP DALMORE 1 ................................................... 52 995.5 898.3 13 141.6 1137.1

KOO WEE RUP DALMORE 2A ................................................ 38 797.2 380.7 8 47.0 844.2

KOO WEE RUP DALMORE 2B ................................................ 71 3049.9 1844.7 21 124.4 3174.3





LAKE MUNDI ............................................................................ 46 21455.2 4016.6 2 215.0 21670.2

LANCEFIELD .............................................................................. 11 979.2 226.8 1 208.0 1187.2

LANG LANG ............................................................................... 19 1935.6 466.8 55 2116.6 4052.2

LEONGATHA .............................................................................. 12 1020.3 226.3 22 532.7 1553.0

MERRIMU .................................................................................. 9 411.5 134.2 0 0.0 411.5

MOE ............................................................................................ 18 2167.1 372.1 54 401.1 2568.2

MOORABBIN ............................................................................ 26 1863.2 469.3 2 162.5 2025.7

NEPEAN 1 .................................................................................. 5 254.0 54.2 3 17.0 271.0

NEPEAN 2 .................................................................................. 55 4825.7 1225.1 3 22.0 4847.7

NON GMA .................................................................................. 562 40786.2 8848.9 534 10453.0 51239.3

NULLAWARRE .......................................................................... 104 21221.6 3464.9 106 793.5 22015.1

ORBOST ..................................................................................... 2 1200.0 202.0 0 0.0 1200.0

PAARATTE ................................................................................. 0 0.0 0.0 3 1009.0 1009.0

PORTLAND ................................................................................ 3 230.1 64.1 3 1374.0 1604.1

ROSEDALE 1 .............................................................................. 27 9246.5 1600.2 5 189.4 9435.9

ROSEDALE 2 .............................................................................. 17 5932.1 989.5 6 1675.7 7607.8

SALE ........................................................................................... 84 16983.6 4079.5 11 4040.2 21023.8

SEACOMBE ............................................................................... 34 11661.7 2047.6 6 2887.2 14548.9

TARWIN ..................................................................................... 1 2.0 0.3 1 38.0 40.0

WA-DE-LOCK 1 ......................................................................... 57 10368.1 1729.5 54 387.1 10755.2

WA-DE-LOCK 2 ......................................................................... 68 11726.0 2006.5 44 267.2 11993.2

WA-DE-LOCK 3 ......................................................................... 4 779.7 148.3 1 160.0 939.7

WANDIN YALLOCK .................................................................. 158 2607.2 811.7 5 70.2 2677.4

WARRION .................................................................................. 98 13820.6 2315.8 28 347.2 14167.8

WY YUNG 1 ................................................................................ 7 689.0 127.7 0 0.0 689.0

WY YUNG 2 ................................................................................ 48 5331.2 1069.7 0 0.0 5331.2

WY YUNG 3 ................................................................................ 11 893.3 139.4 0 0.0 893.3

YANGERY ................................................................................... 114 11382.9 2364.1 53 3105.0 14487.9

AWAITING GMA ASSESSMENT ........................................... 6 448.2 94.50 5 49268.0 49716.2

Other Areas ............................................................................... 19 3150.8 510.2 21 2026.3 5177.1

Total ............................................................................................ 22902290229022902290 254980.4254980.4254980.4254980.4254980.4 53123.653123.653123.653123.653123.6 12641264126412641264 97498.897498.897498.897498.897498.8 352479.3352479.3352479.3352479.3352479.3

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GIPPSLAND & SOUTHERN RURAL WATER AUTHORITYGIPPSLAND & SOUTHERN RURAL WATER AUTHORITYGIPPSLAND & SOUTHERN RURAL WATER AUTHORITYGIPPSLAND & SOUTHERN RURAL WATER AUTHORITYGIPPSLAND & SOUTHERN RURAL WATER AUTHORITY

STATEMENT OF FINANCIAL PERFORMANCESTATEMENT OF FINANCIAL PERFORMANCESTATEMENT OF FINANCIAL PERFORMANCESTATEMENT OF FINANCIAL PERFORMANCESTATEMENT OF FINANCIAL PERFORMANCE

FOR THE YEAR ENDED 30 JUNE 2001FOR THE YEAR ENDED 30 JUNE 2001FOR THE YEAR ENDED 30 JUNE 2001FOR THE YEAR ENDED 30 JUNE 2001FOR THE YEAR ENDED 30 JUNE 2001NOTESNOTESNOTESNOTESNOTES 2000-20012000-20012000-20012000-20012000-2001 1999-20001999-20001999-20001999-20001999-2000

$’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’s

REVENUEREVENUEREVENUEREVENUEREVENUE

OPERATING REVENUEOPERATING REVENUEOPERATING REVENUEOPERATING REVENUEOPERATING REVENUE

Water Rates & Charges 2 9,724 9,313

Storage Operator Charges 3 3,422 3,463

Government Grants for Services 1.3, 4 2,683 801

Other Revenue 6 207 326

External Services Contracts 109 150

Interest on Overdue Accounts 77 66

NON-OPERATING REVENUENON-OPERATING REVENUENON-OPERATING REVENUENON-OPERATING REVENUENON-OPERATING REVENUE

Interest on Investments 649 576

Government Contribution for Capital Purposes 1.3, 4 ----- 137

Proceeds from Sale of Fixed Assets 5 335 500

Revenues from Ordinary ActivitiesRevenues from Ordinary ActivitiesRevenues from Ordinary ActivitiesRevenues from Ordinary ActivitiesRevenues from Ordinary Activities 17,20617,20617,20617,20617,206 15,33215,33215,33215,33215,332

LESS OPERATING EXPENSESLESS OPERATING EXPENSESLESS OPERATING EXPENSESLESS OPERATING EXPENSESLESS OPERATING EXPENSESOperations 4,750 5,583

Depreciation of Fixed Assets 1.5, 12 5,283 4,228

Administration 3,332 2,815

Maintenance 2,494 1,895

Written Down Value of Disposed Assets 5 819 721

Transfer of Assets 7 ----- 7,339

Expenses from Ordinary ActivitiesExpenses from Ordinary ActivitiesExpenses from Ordinary ActivitiesExpenses from Ordinary ActivitiesExpenses from Ordinary Activities 16,67816,67816,67816,67816,678 22,58122,58122,58122,58122,581

Profit (Loss) Attributable to the AuthorityProfit (Loss) Attributable to the AuthorityProfit (Loss) Attributable to the AuthorityProfit (Loss) Attributable to the AuthorityProfit (Loss) Attributable to the Authority 528528528528528 (7,249)(7,249)(7,249)(7,249)(7,249)

Increase in Asset Revaluation ReserveIncrease in Asset Revaluation ReserveIncrease in Asset Revaluation ReserveIncrease in Asset Revaluation ReserveIncrease in Asset Revaluation Reserve 15(c) 2,7542,7542,7542,7542,754 69,04169,04169,04169,04169,041

Total Changes in Equity Other than those resulting fromTotal Changes in Equity Other than those resulting fromTotal Changes in Equity Other than those resulting fromTotal Changes in Equity Other than those resulting fromTotal Changes in Equity Other than those resulting from

transactions with owners as ownerstransactions with owners as ownerstransactions with owners as ownerstransactions with owners as ownerstransactions with owners as owners 3,2823,2823,2823,2823,282 61,79261,79261,79261,79261,792

The accompanying notes form part of these financial statements.

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STATEMENT OF FINANCIAL POSITIONSTATEMENT OF FINANCIAL POSITIONSTATEMENT OF FINANCIAL POSITIONSTATEMENT OF FINANCIAL POSITIONSTATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2001AS AT 30 JUNE 2001AS AT 30 JUNE 2001AS AT 30 JUNE 2001AS AT 30 JUNE 2001NOTESNOTESNOTESNOTESNOTES 2000-20012000-20012000-20012000-20012000-2001 1999-20001999-20001999-20001999-20001999-2000

$’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’s

CURRENT ASSETSCURRENT ASSETSCURRENT ASSETSCURRENT ASSETSCURRENT ASSETSCash Assets 1.12, 23 6,811 3,666

Receivables 9 2,659 2,394

Other Financial Assets 1.6, 10 5,000 1,500

Inventories 1.7 144 179

Other 147 63

Total Current AssetsTotal Current AssetsTotal Current AssetsTotal Current AssetsTotal Current Assets 14,76114,76114,76114,76114,761 7,8027,8027,8027,8027,802

NON-CURRENT ASSETSNON-CURRENT ASSETSNON-CURRENT ASSETSNON-CURRENT ASSETSNON-CURRENT ASSETSOther Financial Assets 1.6, 10 1,208 6,208

Property, Plant & Equipment 1.4, 11 425,653 425,328

Total Non-Current AssetsTotal Non-Current AssetsTotal Non-Current AssetsTotal Non-Current AssetsTotal Non-Current Assets 426,861426,861426,861426,861426,861 431,536431,536431,536431,536431,536

Total AssetsTotal AssetsTotal AssetsTotal AssetsTotal Assets 441,622441,622441,622441,622441,622 439,338439,338439,338439,338439,338

CURRENT LIABILITIESCURRENT LIABILITIESCURRENT LIABILITIESCURRENT LIABILITIESCURRENT LIABILITIESPayables 13 1,417 2,044

Advances for capital and other works 118 68

Provision for employee entitlements 14 570 745

Total Current LiabilitiesTotal Current LiabilitiesTotal Current LiabilitiesTotal Current LiabilitiesTotal Current Liabilities 2,1052,1052,1052,1052,105 2,8572,8572,8572,8572,857

NON-CURRENT LIABILITIESNON-CURRENT LIABILITIESNON-CURRENT LIABILITIESNON-CURRENT LIABILITIESNON-CURRENT LIABILITIESProvision for employee entitlements 14 862 727

Total Non-Current LiabilitiesTotal Non-Current LiabilitiesTotal Non-Current LiabilitiesTotal Non-Current LiabilitiesTotal Non-Current Liabilities 862862862862862 727727727727727

Total LiabilitiesTotal LiabilitiesTotal LiabilitiesTotal LiabilitiesTotal Liabilities 2,9672,9672,9672,9672,967 3,5843,5843,5843,5843,584

Net AssetsNet AssetsNet AssetsNet AssetsNet Assets 438,655438,655438,655438,655438,655 435,754435,754435,754435,754435,754

EQUITYEQUITYEQUITYEQUITYEQUITYContributed capital 15(a) 363,157 370,496

Asset revaluation reserve 15(c) 71,795 69,041

Retained profits 15(b) 3,703 (3,783)

Total EquityTotal EquityTotal EquityTotal EquityTotal Equity 438,655438,655438,655438,655438,655 435,754435,754435,754435,754435,754


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STATEMENT OF CASH FLOWSSTATEMENT OF CASH FLOWSSTATEMENT OF CASH FLOWSSTATEMENT OF CASH FLOWSSTATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2001FOR THE YEAR ENDED 30 JUNE 2001FOR THE YEAR ENDED 30 JUNE 2001FOR THE YEAR ENDED 30 JUNE 2001FOR THE YEAR ENDED 30 JUNE 2001NOTESNOTESNOTESNOTESNOTES 2000-20012000-20012000-20012000-20012000-2001 1999-20001999-20001999-20001999-20001999-2000

$’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’s

CASH FLOWS FROM OPERATING ACTIVITIESCASH FLOWS FROM OPERATING ACTIVITIESCASH FLOWS FROM OPERATING ACTIVITIESCASH FLOWS FROM OPERATING ACTIVITIESCASH FLOWS FROM OPERATING ACTIVITIESReceipts from customers 13,623 13,251

Receipts from Government 2,293 938

Payments to suppliers and employees (11,208) (8,773)

Interest and bill discount received 655 576

Net Cash provided by Operating ActivitiesNet Cash provided by Operating ActivitiesNet Cash provided by Operating ActivitiesNet Cash provided by Operating ActivitiesNet Cash provided by Operating Activities 24 5,3635,3635,3635,3635,363 5,9925,9925,9925,9925,992

CASH FLOWS FROM INVESTING ACTIVITIESCASH FLOWS FROM INVESTING ACTIVITIESCASH FLOWS FROM INVESTING ACTIVITIESCASH FLOWS FROM INVESTING ACTIVITIESCASH FLOWS FROM INVESTING ACTIVITIESPayment for property, plant and equipment (3,674) (6,339)

Proceeds from (Payment for) investment - term deposit 1,501 (1,442)

Proceeds from sale of property, plant and equipment 335 500

Net Cash used in Investing ActivitiesNet Cash used in Investing ActivitiesNet Cash used in Investing ActivitiesNet Cash used in Investing ActivitiesNet Cash used in Investing Activities (1,838)(1,838)(1,838)(1,838)(1,838) (7,281)(7,281)(7,281)(7,281)(7,281)

CASH FLOWS FROM FINANCING ACTIVITIESCASH FLOWS FROM FINANCING ACTIVITIESCASH FLOWS FROM FINANCING ACTIVITIESCASH FLOWS FROM FINANCING ACTIVITIESCASH FLOWS FROM FINANCING ACTIVITIESDividend Payment to Government (380) (418)

Net Cash used in Financing ActivitiesNet Cash used in Financing ActivitiesNet Cash used in Financing ActivitiesNet Cash used in Financing ActivitiesNet Cash used in Financing Activities (380)(380)(380)(380)(380) (418)(418)(418)(418)(418)

Net Increase/(Decrease) in Cash HeldNet Increase/(Decrease) in Cash HeldNet Increase/(Decrease) in Cash HeldNet Increase/(Decrease) in Cash HeldNet Increase/(Decrease) in Cash Held 3,1453,1453,1453,1453,145 (1,707)(1,707)(1,707)(1,707)(1,707)

Cash Held at the Beginning of the YearCash Held at the Beginning of the YearCash Held at the Beginning of the YearCash Held at the Beginning of the YearCash Held at the Beginning of the Year 3,6663,6663,6663,6663,666 5,3735,3735,3735,3735,373

Cash Held at the End of the YearCash Held at the End of the YearCash Held at the End of the YearCash Held at the End of the YearCash Held at the End of the Year 23 6,8116,8116,8116,8116,811 3,6663,6663,6663,6663,666


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11111 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIESSTATEMENT OF SIGNIFICANT ACCOUNTING POLICIESSTATEMENT OF SIGNIFICANT ACCOUNTING POLICIESSTATEMENT OF SIGNIFICANT ACCOUNTING POLICIESSTATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

1 . 11 . 11 . 11 . 11 . 1 Est abl i shment of t he Aut hor i t yEst abl i shment of t he Aut hor i t yEst abl i shment of t he Aut hor i t yEst abl i shment of t he Aut hor i t yEst abl i shment of t he Aut hor i t yGippsland and Southern Rural Water Authority (SRW) was established on 1 July 1995, by a Ministerial Order under section 98 of the WaterAct 1989, dated 30 June 1995.

1.21.21.21.21.2 Accounting basisAccounting basisAccounting basisAccounting basisAccounting basisThe Financial Statements are a general purpose financial report that has been prepared in accordance with applicable Accounting Standardsand other mandatory professional reporting requirements (Urgent Issues Group Consensus Views), and provisions of the Financial ManagementAct 1994.

The Financial Statements have been prepared on an accrual basis and in accordance with historical cost convention, except for the valuationof infrastructure assets, which are recorded at current written down replacement value. The accounting policies adopted in preparing theFinancial Statements are consistent with those of the previous year.

1.31.31.31.31.3 Government GrantsGovernment GrantsGovernment GrantsGovernment GrantsGovernment GrantsPrograms such as state water assessment, groundwater investigations, salinity investigations, establishment of groundwater managementareas, and water resource management, are performed under agreements with the Victorian Government. The reimbursement of the cost ofthese services for recurrent purposes is included as “ Government Grants for Services” and for capital purposes as “ Government Contributionfor Capital Purposes” in the Statement of Financial Performance. The cost of the provision of these services is included in the “ OperatingExpenses”.

1.41.41.41.41.4 Property, Plant & EquipmentProperty, Plant & EquipmentProperty, Plant & EquipmentProperty, Plant & EquipmentProperty, Plant & EquipmentFixed assets of the Authority are recorded in the books of account as follows;

(a) Fixed assets, other than infrastructure assets, which were acquired prior to 1 July 1994, are shown at estimated written downhistorical cost; those acquired since 1 July 1994 are shown at cost.

(b) Infrastructure assets acquired prior to 30 June1999 were revalued during 1999/2000 and are shown at estimated current writtendown replacement value. Those acquired after 1 July 1999 are shown at cost.

(c) In the case of assets constructed by the Authority, on-site overheads are included in the cost of the assets.

(d) Individual items of plant costing less than $1000 are expensed in the year of purchase.

(e) As the Authority is a not-for-profit entity, it has not reviewed the carrying amount of its non-current assets in accordance with theprovisions of Australian Accounting Standard AAS10 “ Recoverable Amount of Non-Current Assets”.

(f) In accordance with the Authority’s policy of revaluing assets every five years, a revaluation of infrastructure assets as at 1 July 1999was undertaken during 1999/2000.

Headworks infrastructure assets were revalued by the Snowy Mountains Engineering Corporation (Mr T Reid B Eng (Civil), Dip Civil Eng,FIEA, MAGS and Mr Colin Rudd B Eng(Civil),Grad Cert Water Eng, Grad Dip Mgmt, MIEA).

Irrigation distribution infrastructure assets were revalued by SRW officers (Mr Paul Byrnes B Eng (Ag)(Hons), Grad Cert Water Eng, Grad DipGIS and Remote Sensing and Ms Lucy Hluszko B Eng (Civil & Computing)).

1.51.51.51.51.5 DepreciationDepreciationDepreciationDepreciationDepreciationDepreciation, using the straight line method, is provided on depreciable assets and charged against revenue on the basis of allocating thecost of the assets over their estimated useful life.

Depreciation is provided for six months in the year the asset comes into service and for six months in the final year of useful life. Majorclasses of assets and their values are included in note 11

Depreciation rates depend on life expectancy. In general the rates used are:

Item RateStorages 0-1% } Variable, depending uponChannels 1-2% } the condition basedPipelines 1-2% } remaining useful life of the asset.Buildings 2.5%Plant and equipment 10%Office furniture and equipment 5% to 33.3%Motor Vehicles 12.5%

1.61.61.61.61.6 InvestmentsInvestmentsInvestmentsInvestmentsInvestmentsAuthority funds are invested in accordance with Treasury and Investment powers granted to the Authority under the Borrowing and InvestmentPowers Act 1987. All investments with a maturity date within 12 months of balance date are classified as current assets, unless there existsa probable intention to reinvest the full amount of the investment beyond that period. All other investments are classified as non current.

1.71.71.71.71.7 InventoriesInventoriesInventoriesInventoriesInventoriesInventories consist of materials and supplies for asset construction, system operation and general maintenance and are valued at the lowerof cost or net realisable value.

1.81.81.81.81.8 Employee entitlementsEmployee entitlementsEmployee entitlementsEmployee entitlementsEmployee entitlementsEmployee entitlements consist of provisions for long service leave and annual leave.

Long service leave provision is recognised and is measured as the present value of expected future payments to be made in respect ofservices provided by employees up to reporting date. Consideration is given to expected future wage and salary levels, experience ofemployee departures and periods of service.

Expected future payments are discounted using interest rates on national Government guaranteed securities with terms to maturity thatmatch, as closely as possible, the estimated future cash flows.

The current liability for long service leave represents the estimated amount of leave to be taken in the next twelve months, with the remainderof the provisions being considered as non-current.

A provision for sick leave was not necessary as it is not likely that sick leave in future periods would exceed entitlements expected to accruein those periods.

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1.91.91.91.91.9 InsuranceInsuranceInsuranceInsuranceInsuranceThe Authority is covered by policies obtained through a number of underwriters for both property and legal liabilities. The Authority selfinsures for any amounts below policy deductible limits.

No provision is made for potential claims. They are expensed as they occur. Any unsettled claims have been disclosed as contingent liabilitiesin the notes to the financial statements.

1.101.101.101.101.10 Operating LeasesOperating LeasesOperating LeasesOperating LeasesOperating LeasesWhere the Authority has a lease, but does not assume, substantially, all the risks and benefits associated with the ownership of the asset, thelease payments are expensed in the year they are incurred.

1.111.111.111.111.11 SuperannuationSuperannuationSuperannuationSuperannuationSuperannuationThe Authority contributes in respect of its employees to a number of superannuation schemes administered by the Government SuperannuationOffice, Local Authorities Super Pty Ltd and other authorised Superannuation Funds. The amounts of these contributions are determined byeach scheme’s actuary in accordance with statutory requirements or in accordance with Superannuation Guarantee Legislation.

The Authority’s statutory contributions to these schemes are recorded as a superannuation expense. (Note 20)

1.121.121.121.121.12 Cash at Bank and on HandCash at Bank and on HandCash at Bank and on HandCash at Bank and on HandCash at Bank and on HandCash at bank and on hand includes petty cash on hand and SRW bank account balance at year end.

1.131.131.131.131.13 Bad and Doubtful DebtsBad and Doubtful DebtsBad and Doubtful DebtsBad and Doubtful DebtsBad and Doubtful DebtsA provision is made for any doubtful debts based on a review of all receivables at balance date. Bad debts are written off in the period inwhich they are identified.

1.141.141.141.141.14 RevenueRevenueRevenueRevenueRevenueRevenue is brought into account when services have been provided or when a rate is levied or determined.

Charges for water delivered are either charged progressively during the year or accrued at 30 June based on actual meter readings.

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

The value of goods and services provided free of charge would be recognised as revenue when the Authority gained control of them. Nogoods or services were provided free during 2000-2001.

Government grants for service are recognised as revenue at the earlier of the grant being received or invoiced.

In Accounting for the sale of fixed assets, gross proceeds from the sales of fixed assets are included as non operating revenue and writtendown value of the assets sold is disclosed as an operating expense. Details of the gains and losses on disposal of fixed assets are shown innote 5.

All revenue is stated net of the amount of goods and services tax (GST).

1.151.151.151.151.15 Comparative FiguresComparative FiguresComparative FiguresComparative FiguresComparative FiguresWhere required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for the currentfinancial year.

2000-20012000-20012000-20012000-20012000-2001 1999-20001999-20001999-20001999-20001999-2000

$’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’s

22222 WATER RATES & CHARGESWATER RATES & CHARGESWATER RATES & CHARGESWATER RATES & CHARGESWATER RATES & CHARGESRates & Charges - Irrigation, Diversions & Groundwater ...................................................... 7,624 7,640Sales - Irrigation & Diversions ....................................................................................................

1,618 1,149

Other Charges - Bores, Drilling & Grazing Licences ............................................................... 482 5249,724 9,313

33333 STORAGE OPERATOR CHARGESSTORAGE OPERATOR CHARGESSTORAGE OPERATOR CHARGESSTORAGE OPERATOR CHARGESSTORAGE OPERATOR CHARGESTotal charges ...................................................................................................................................

4,778 4,721

Charges to retail business ............................................................................................................ (1,356) (1,258)Charges to other organisations ................................................................................................... 3,422 3,463

44444 GOVERNMENT GRANTSGOVERNMENT GRANTSGOVERNMENT GRANTSGOVERNMENT GRANTSGOVERNMENT GRANTS

For ServicesFor ServicesFor ServicesFor ServicesFor ServicesState Government - Salinity Projects ........................................................................................ 189 50State Government - People Management ................................................................................. 3 -State Government - Tree Planting ............................................................................................... 3 -State Government - Youth Employment Scheme

...................................................................... 28 -

State Government - Establishment of Groundwater Management Areas ........................... 1,666 748State Government - Water for Growth Initiative ....................................................................... 681 -State Government - Water Savings Plan for Macalister Irrigation District ........................ 100 -State Government - Recreational Water Safety Initiative ...................................................... 13 -State Government - Latrobe REALM Model .............................................................................. - 3

2,683 801

For Capital PurposesFor Capital PurposesFor Capital PurposesFor Capital PurposesFor Capital PurposesState Government - Salinity Projects - Capital ........................................................................ - 137

55555 PROFIT / (LOSS) FROM SALE OF FIXED ASSETSPROFIT / (LOSS) FROM SALE OF FIXED ASSETSPROFIT / (LOSS) FROM SALE OF FIXED ASSETSPROFIT / (LOSS) FROM SALE OF FIXED ASSETSPROFIT / (LOSS) FROM SALE OF FIXED ASSETSProceeds from Sale of Fixed Assets ........................................................................................... 335 500Written Down Value of Disposed Assets ................................................................................... (819) (721)Profit / (Loss) from Sale of Fixed Assets .................................................................................... (484) (221)

66666 OTHER REVENUEOTHER REVENUEOTHER REVENUEOTHER REVENUEOTHER REVENUERoyalties

...............................................................................................................................

............ 108 66Other ................................................................................................................................................. 99 260

207 326

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2000-20012000-20012000-20012000-20012000-2001 1999-20001999-20001999-20001999-20001999-2000

$’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’s

77777 TRANSFER OF ASSETSTRANSFER OF ASSETSTRANSFER OF ASSETSTRANSFER OF ASSETSTRANSFER OF ASSETSTransfer of Assets for the Woady Yaloak Diversion Scheme, transferred to theCorangamite Catchment Management Authority as at 1 July 1999, in accordancewith a Ministerial Order dated 19 August 1999. Operation and maintenance of thescheme is now the statutory responsibility of the Corangamite CMA.Refer to Note 15. . - (7,339)

88888 AUDIT FEESAUDIT FEESAUDIT FEESAUDIT FEESAUDIT FEESFinancial Statements Audit .......................................................................................................... 21 20

21 20

99999 RECEIVABLESRECEIVABLESRECEIVABLESRECEIVABLESRECEIVABLESWater consumers and other external clients. .......................................................................... 2,689 2,42Less Provision for Doubtful Debts (refer note1.13) .................................................................. (30) (30)

2,659 2,394Most debts of the Authority are secured against property. For this reason theAuthority has only a $30,000 provision for doubtful debts for general business debtors.

9.19.19.19.19.1 BAD & DOUBTFUL DEBTSBAD & DOUBTFUL DEBTSBAD & DOUBTFUL DEBTSBAD & DOUBTFUL DEBTSBAD & DOUBTFUL DEBTSBad Debts Expense

........................................................................................................................

- -No amounts have been written off as unrecoverable during the reporting period.

1010101010 OTHER FINANCIAL ASSETSOTHER FINANCIAL ASSETSOTHER FINANCIAL ASSETSOTHER FINANCIAL ASSETSOTHER FINANCIAL ASSETS

CurrentCurrentCurrentCurrentCurrentInterest bearing deposit - current .............................................................................................. 5,000 1,500

5,000 1,500

Non CurrentNon CurrentNon CurrentNon CurrentNon Current*Interest bearing deposit - non-current .................................................................................... 1,208 6,208Total

...............................................................................................................................

.................... 6,208 7,708* This investment has been established to offset a bank guarantee toMelbourne Water Corporation, for water supplied from the Thomson Reservoir.The guarantee is exercisable only if SRW are unable to redeem the water usedfrom future water allocations (refer note 26).

1111111111 PROPERTY, PLANT & EQUIPMENT PROPERTY, PLANT & EQUIPMENT PROPERTY, PLANT & EQUIPMENT PROPERTY, PLANT & EQUIPMENT PROPERTY, PLANT & EQUIPMENT (Refer notes: 1.4, 1.5)

LandLandLandLandLandAt Cost .............................................................................................................................................. 5,466 5,466

Infrastructure AssetsInfrastructure AssetsInfrastructure AssetsInfrastructure AssetsInfrastructure AssetsAt Cost ..............................................................................................................................................

4,473 3,638

At Valuation ** ................................................................................................................................

415,170 412,880

Accumulated Depreciation ........................................................................................................... (4,891) -

414,752 416,518

BuildingsBuildingsBuildingsBuildingsBuildingsAt Cost ..............................................................................................................................................

1,197 1,197

Accumulated Depreciation ........................................................................................................... (192) (161)

1,005 1,036

Furniture, Fittings and Computer EquipmentFurniture, Fittings and Computer EquipmentFurniture, Fittings and Computer EquipmentFurniture, Fittings and Computer EquipmentFurniture, Fittings and Computer EquipmentAt Cost ..............................................................................................................................................

2,193 2,079

Accumulated Depreciation ........................................................................................................... (1,445) (1,281)

748 798

Plant and MachineryPlant and MachineryPlant and MachineryPlant and MachineryPlant and MachineryAt Cost .............................................................................................................................................. 652 609Accumulated Depreciation ........................................................................................................... (351) (323)

301 286

Motor VehiclesMotor VehiclesMotor VehiclesMotor VehiclesMotor VehiclesAt Cost ..............................................................................................................................................

1,508 1,492

Accumulated Depreciation ........................................................................................................... (289) (268)...........................................................................................................................................................

1,219 1,224

Total Property, Plant & EquipmentTotal Property, Plant & EquipmentTotal Property, Plant & EquipmentTotal Property, Plant & EquipmentTotal Property, Plant & Equipment .............................................................................................. 423,491423,491423,491423,491423,491 425,328425,328425,328425,328425,328

Capital WIP

...............................................................................................................................

.......

2,162 -

425,653425,653425,653425,653425,653 425,328425,328425,328425,328425,328A revaluation of infrastructure assets has been undertaken as at 30 June 1999.

** Refer note1.4(f)

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11.111.111.111.111.1 Movements in Fixed AssetsMovements in Fixed AssetsMovements in Fixed AssetsMovements in Fixed AssetsMovements in Fixed AssetsFurniture,Furniture,Furniture,Furniture,Furniture,

Infra-Infra-Infra-Infra-Infra- Fittings &Fittings &Fittings &Fittings &Fittings &structurestructurestructurestructurestructure ComputerComputerComputerComputerComputer Plant &Plant &Plant &Plant &Plant & MotorMotorMotorMotorMotor

LandLandLandLandLand AssetsAssetsAssetsAssetsAssets Equip.Equip.Equip.Equip.Equip. MachineryMachineryMachineryMachineryMachinery VehiclesVehiclesVehiclesVehiclesVehicles BuildingsBuildingsBuildingsBuildingsBuildings TotalTotalTotalTotalTotal

$’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’s

Balance at Beginning

.............................. 5,466 416,518 798 286 1,224 1,036 425,328

Additions .................................................... - 835 114 47 515 - 1,511Disposals

.................................................... - 465 - - 354 - 819

Revaluation Increments .......................... - 2,754

- - - - 2,754

Depreciation Expense ............................. - 4,891 164 31 166 31 5,283Carrying Amountat the end of the Year ............................... 5,466 414,752 748 301 1,219 1,005 423,491

2000-20012000-20012000-20012000-20012000-2001 1999-20001999-20001999-20001999-20001999-2000

$’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’s

1212121212 DEPRECIATIONDEPRECIATIONDEPRECIATIONDEPRECIATIONDEPRECIATIONInfrastructure Assets .....................................................................................................................

4,891 3,663

Buildings .......................................................................................................................................... 31 37Furniture, Fittings and Computer Equipment ............................................................................. 164 304Plant and Machinery

..................................................................................................................... 31 41

Motor Vehicles ................................................................................................................................ 166 183

5,283 4,228

1313131313 PAYABLESPAYABLESPAYABLESPAYABLESPAYABLESTrade Creditors & Accrued Expenses ........................................................................................ 1,277 1,932Payroll Related Accruals .............................................................................................................. 140 112

1,417 2,044

1414141414 PROVISION FOR EMPLOYEE ENTITLEMENTSPROVISION FOR EMPLOYEE ENTITLEMENTSPROVISION FOR EMPLOYEE ENTITLEMENTSPROVISION FOR EMPLOYEE ENTITLEMENTSPROVISION FOR EMPLOYEE ENTITLEMENTSCurrent

........................................................................................................... Long Service Leave 95 294

.................................................................................................................................. Annual Leave 475 451

570 745

Non-current .................................................................................................. Long Service Leave 862 727

Total

...............................................................................................................................

.................... 1,432 1,472

Number of Employees at year end

.............................................................................................. 110 109

1515151515 EQUITYEQUITYEQUITYEQUITYEQUITY

15(a)15(a)15(a)15(a)15(a) Contributed CapitalContributed CapitalContributed CapitalContributed CapitalContributed CapitalBalance 1 July 2000

....................................................................................................................... 370,496 370,496

Transfer to Retained Profits .......................................................................................................... (7,339) -

Balance 30 June 2001 .................................................................................................................... 363,157 370,496

On 1st July 1999 the Woady Yaloak Diversion Scheme was transferred to theCorangamite Catchment Management Authority in accordance with a MinisterialOrder dated 19 August 1999. This transfer was processed through the Statement ofFinancial Performance as Abnormal Expenditure at 30 June 2000.This amount has now been transferred to Retained Profits as at 30 June 2001.

15(b)15(b)15(b)15(b)15(b) Retained ProfitsRetained ProfitsRetained ProfitsRetained ProfitsRetained ProfitsRetained Profits at the beginning of the financial year .......................................................... (3,783) 3,884Net Profit Attributable to the Authority ...................................................................................... 528 (7,249)Dividends Paid to Government .................................................................................................... (380) (418)Transfer from Contributed Capital - see note 15 ....................................................................... 7,339 -

Retained Profits at the end of the financial year ...................................................................... 3,703 (3,783)

15(c)15(c)15(c)15(c)15(c) Asset Revaluation ReserveAsset Revaluation ReserveAsset Revaluation ReserveAsset Revaluation ReserveAsset Revaluation ReserveOpening Balance

............................................................................................................................ 69,041 -

Revaluation increment in infrastructure assets ....................................................................... - 69,041Adjustment to Reserve ** .............................................................................................................

2,754 -

Closing Balance

..............................................................................................................................

71,795 69,041

The asset revaluation reserve records revaluations of non-current assets.** The Authority has made an adjustment of $2,753,683 against the Asset RevaluationReserve. This amount relates to an error in the original asset revaluation exercise,and is included in the value of the Authority’s Infrastructure Assets at Valuation.This entry has been processed in accordance with AAS38, and is one of the fewinstances where Retained Earnings is not directly adjusted.

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2000-20012000-20012000-20012000-20012000-2001 1999-20001999-20001999-20001999-20001999-2000

$’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’s

1616161616 CONSULTANTSCONSULTANTSCONSULTANTSCONSULTANTSCONSULTANTSConsultants were engaged by the Authority in 2000-2001 to assist with: OccupationalHealth and Safety, Workcover Management, IT Systems Development andGeneral Public Relations.Consultancies let 2000-2001 ......................................................................................................... 119 156There were no individual consultancies in excess of $100,000.

1717171717 LEASE COMMITMENTSLEASE COMMITMENTSLEASE COMMITMENTSLEASE COMMITMENTSLEASE COMMITMENTSOperating Lease CommitmentsOperating Lease CommitmentsOperating Lease CommitmentsOperating Lease CommitmentsOperating Lease CommitmentsBeing for leases of motor vehicles payable:— not later than 1 year ................................................................................................................. 122 143— later than 1 year but not later than 5 years .......................................................................... 49 33— later than 5 years ...................................................................................................................... - -

171 176The motor vehicle leases are non-cancellable leases with two year term, withrent payable monthly in advance.

1818181818 CAPITAL COMMITMENTSCAPITAL COMMITMENTSCAPITAL COMMITMENTSCAPITAL COMMITMENTSCAPITAL COMMITMENTSCapital expenditure contracts outstanding:— not later than 1 year .................................................................................................................

1,468 517

— later than 1 year but not later than 5 years .......................................................................... - -— later than 5 years ...................................................................................................................... - -This represents commitments outstanding on contracts for Capital Works.All outstanding works will be completed during 2001-2002.There is no actual liability for this amount at 30 June 2001.

1919191919 TRANSACTIONS WITH OTHER VICTORIAN GOVERNMENT CONTROLLED ENTITIESTRANSACTIONS WITH OTHER VICTORIAN GOVERNMENT CONTROLLED ENTITIESTRANSACTIONS WITH OTHER VICTORIAN GOVERNMENT CONTROLLED ENTITIESTRANSACTIONS WITH OTHER VICTORIAN GOVERNMENT CONTROLLED ENTITIESTRANSACTIONS WITH OTHER VICTORIAN GOVERNMENT CONTROLLED ENTITIESDuring the 2000-2001 financial year transactions were undertaken with otherVictorian Governement controlled entites.These transactions are summarised as follows: ...................................................................... 2000-20012000-20012000-20012000-20012000-2001 1999-20001999-20001999-20001999-20001999-2000

$’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’sIntraIntraIntraIntraIntra InterInterInterInterInter IntraIntraIntraIntraIntra InterInterInterInterInter

Assets ............................................................................................................................................... 745 26 738 1Liabilities .......................................................................................................................................... 13 3 149 27Revenues .........................................................................................................................................

5,342 371 3,522 383

Expenses

...............................................................................................................................

........... 186 734 353 750‘Intra’ Transactions are between entities within the Natural Resources and Environment portfolio.‘Inter’ Transactions are with entities outside the portfolio and controlled by the Victorian Government.

2020202020 SUPERANNUATIONSUPERANNUATIONSUPERANNUATIONSUPERANNUATIONSUPERANNUATION 2000-20012000-20012000-20012000-20012000-2001 1999-20001999-20001999-20001999-20001999-2000

$’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’sEmployees of the Authority contribute to a number of superannuation funds. Details are as follows:(a) State Superannuation Fund - New Scheme .............................. Employer Contribution 121 111(Defined Benefit Scheme) .............................................................................. Contribution Rate 9.3% Various 9.3% Various

(b) State Superannuation Fund - Revised Scheme. ........................ Employer Contribution 85 89(Defined Benefit Scheme) .............................................................................. Contribution Rate 14.00% 14.00%

(c) SSF - State Employees Retirement Benefits Fund. ................... Employer Contribution 21 21(Defined Benefit Scheme) .............................................................................. Contribution Rate 12.10% 12.10%The Victorian Government holds the responsibility for any unfunded liability for StateSuperannuation Fund Schemes and is therefore responsible for reporting that liability.

(d) Local Authorities Superannuation Board (LASPLAN) .............. Employer Contribution 210 140(Accumulation Scheme) ................................................................................. Contribution Rate 7.00% 7.00%

(e) Local Authorities Superannuation Board (LASB) ...................... Employer Contribution 41 11(Accumulation Scheme) ................................................................................. Contribution Rate 9.25% 9.25%

(f) Other Superannuation Schemes ................................................... Employer Contribution 206 20(Accumulation Schemes) ............................................................................... Contribution Rate 8.00% 8.00%No loans have been provided to the Authority from any of the above schemes.There are no contributions outstanding as at 30th June 2001.

Unfunded Superannuation LiabilitiesUnfunded Superannuation LiabilitiesUnfunded Superannuation LiabilitiesUnfunded Superannuation LiabilitiesUnfunded Superannuation LiabilitiesUnfunded Liabilities are defined as the difference between the present value of members’ accrued benefits and the net market value of asuperannuation scheme’s assets at the reporting date. The Authority is responsible for any unfunded liabilities arising from 1 July 1992 ondefined benefits superannuation schemes which it sponsors in respect of its employees.

* Local Authorities Superannuation Schemes* Local Authorities Superannuation Schemes* Local Authorities Superannuation Schemes* Local Authorities Superannuation Schemes* Local Authorities Superannuation SchemesAs at 30 June 1999, the Authority had discharged its liability in respect of this scheme and has been informed that, at 30 June 2001, thescheme remains fully funded.

* State Superannuation Fund* State Superannuation Fund* State Superannuation Fund* State Superannuation Fund* State Superannuation FundThe Authority has no unfunded liability in respect of its employees who are members of schemes in this fund. This liability has been assumedby the State Government and is disclosed in its financial statements.

42 Southern Rural Water - Annual Report 2000 - 2001

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2121212121 FINANCIAL INSTRUMENTSFINANCIAL INSTRUMENTSFINANCIAL INSTRUMENTSFINANCIAL INSTRUMENTSFINANCIAL INSTRUMENTS

21(a)21(a)21(a)21(a)21(a) Terms, Conditions and Accounting PolicyTerms, Conditions and Accounting PolicyTerms, Conditions and Accounting PolicyTerms, Conditions and Accounting PolicyTerms, Conditions and Accounting PolicyThe Authority’s accounting policy including the terms and conditions of each class of financial asset, liability and equity instruments, bothrecognised and unrecognised as the balance date, is as follows:

Statement ofStatement ofStatement ofStatement ofStatement ofRecognised FinancialRecognised FinancialRecognised FinancialRecognised FinancialRecognised Financial Financial PositionFinancial PositionFinancial PositionFinancial PositionFinancial PositionInstrumentsInstrumentsInstrumentsInstrumentsInstruments NotesNotesNotesNotesNotes Accounting PoliciesAccounting PoliciesAccounting PoliciesAccounting PoliciesAccounting Policies Terms and ConditionsTerms and ConditionsTerms and ConditionsTerms and ConditionsTerms and Conditions

FINANCIAL ASSETSFINANCIAL ASSETSFINANCIAL ASSETSFINANCIAL ASSETSFINANCIAL ASSETSCash at bank and on handCash at bank and on handCash at bank and on handCash at bank and on handCash at bank and on hand 23 Cash is stated at its nominal amount. The Authority does not have an overdraft

Surplus Authority funds are held in the facility but has access to TCV funds. Thebank account. Bank accounts attracted an average 4.5%

interest rate for the year.

Term DepositsTerm DepositsTerm DepositsTerm DepositsTerm Deposits 10 Term deposit is stated at its nominal The Authority has two term deposits foramount. Interest revenue is recognised $1.207 and $5 million with a fixed interestin the operating statement when it is term for a 15 month maturity, currentearned. interest rate 6.5%.

DebtorsDebtorsDebtorsDebtorsDebtors 9 Debtors are stated at their nominal For rates and charges debtors outstandingamounts due less any provision for as at 30th June 2001, payment is overdue.doubtful debts. A doubtful debts Normal terms are 30 days from date ofprovision is made for any amounts which invoice.are considered unlikely to be collectable.

FINANCIAL LIABILITIESFINANCIAL LIABILITIESFINANCIAL LIABILITIESFINANCIAL LIABILITIESFINANCIAL LIABILITIESCreditors and AccrualsCreditors and AccrualsCreditors and AccrualsCreditors and AccrualsCreditors and Accruals 13 Creditors and accruals are recognised Terms for the payment of creditors are 30

for future amounts to be paid in respect days after the end of the month in whichof goods and services received, the goods and services are received orwhether or not billed to the Authority. services rendered or within 30 days from

the receipt of invoice, whichever is thelater.

21(b)21(b)21(b)21(b)21(b) Interest Rate RiskInterest Rate RiskInterest Rate RiskInterest Rate RiskInterest Rate RiskThe Authority’s exposure to interest rate risk and the effective interest rates of financial assets and liabilities, both recognised and unrecognisedat the balance date, are as follows:

RecognisedRecognisedRecognisedRecognisedRecognised Total CarryingTotal CarryingTotal CarryingTotal CarryingTotal Carrying Weighted AverageWeighted AverageWeighted AverageWeighted AverageWeighted AverageFinancialFinancialFinancialFinancialFinancial FloatingFloatingFloatingFloatingFloating FixedFixedFixedFixedFixed Non-InterestNon-InterestNon-InterestNon-InterestNon-Interest amount as per theamount as per theamount as per theamount as per theamount as per the effectiveeffectiveeffectiveeffectiveeffectiveInstrumentsInstrumentsInstrumentsInstrumentsInstruments Interest RateInterest RateInterest RateInterest RateInterest Rate Interest RateInterest RateInterest RateInterest RateInterest Rate BearingBearingBearingBearingBearing Balance SheetBalance SheetBalance SheetBalance SheetBalance Sheet interest rateinterest rateinterest rateinterest rateinterest rate

2000- 20012000- 20012000- 20012000- 20012000- 2001 1999- 20001999- 20001999- 20001999- 20001999- 2000 2000- 20012000- 20012000- 20012000- 20012000- 2001 1999- 20001999- 20001999- 20001999- 20001999- 2000 2000- 20012000- 20012000- 20012000- 20012000- 2001 1999- 20001999- 20001999- 20001999- 20001999- 2000 2000- 20012000- 20012000- 20012000- 20012000- 2001 1999- 20001999- 20001999- 20001999- 20001999- 2000 2000- 20012000- 20012000- 20012000- 20012000- 2001 1999- 20001999- 20001999- 20001999- 20001999- 2000

$ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s $ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s $ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s $ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s $ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s $ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s $ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s $ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s %%%%% %%%%%

FINANCIAL ASSETSFINANCIAL ASSETSFINANCIAL ASSETSFINANCIAL ASSETSFINANCIAL ASSETSCash

......................................... 6,811 3,666 - - - - 6,811 5,373 5.43% 4.73%

Term Deposit- Investment .. - - 6,208 7,708 - - 6,208 6,266 6.41% 5.50%Debtors

.................................... - - - - 2,659 2,394 2,659 2,328

Total Financial AssetsTotal Financial AssetsTotal Financial AssetsTotal Financial AssetsTotal Financial Assets .......... 6,8116,8116,8116,8116,811 3,6663,6663,6663,6663,666 6,2086,2086,2086,2086,208 7,7087,7087,7087,7087,708 2,6592,6592,6592,6592,659 2,3942,3942,3942,3942,394 15,67815,67815,67815,67815,678 13,96713,96713,96713,96713,967

FINANCIAL LIABILITIESFINANCIAL LIABILITIESFINANCIAL LIABILITIESFINANCIAL LIABILITIESFINANCIAL LIABILITIESCreditors and Accruals ........ - - - - 1,417 2,044 1,417 2,044 - -Advances for Capital & Other Works - - - - 118 68 118 68 - -

Total Financial LiabilitiesTotal Financial LiabilitiesTotal Financial LiabilitiesTotal Financial LiabilitiesTotal Financial Liabilities ..... ----- ----- ----- ----- 1,535 1,535 1,535 1,535 1,535 2,1222,1222,1222,1222,122 1,535 1,535 1,535 1,535 1,535 2,112 2,112 2,112 2,112 2,112

21(c)21(c)21(c)21(c)21(c) Net Fair ValuesNet Fair ValuesNet Fair ValuesNet Fair ValuesNet Fair ValuesThe aggregate net fair values of financial assets and liabilities, both recognised and unrecognised at the balance date, are as follows:

Total Carrying amount perTotal Carrying amount perTotal Carrying amount perTotal Carrying amount perTotal Carrying amount perRecognised Financial InstrumentsRecognised Financial InstrumentsRecognised Financial InstrumentsRecognised Financial InstrumentsRecognised Financial Instruments Statement of Financial PositionStatement of Financial PositionStatement of Financial PositionStatement of Financial PositionStatement of Financial Position Aggregate Fair ValueAggregate Fair ValueAggregate Fair ValueAggregate Fair ValueAggregate Fair Value

2000-20012000-20012000-20012000-20012000-2001 1999-20001999-20001999-20001999-20001999-2000 2000-20012000-20012000-20012000-20012000-2001 1999-20001999-20001999-20001999-20001999-2000

$ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s $ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s $ ‘000’$ ‘000’$ ‘000’$ ‘000’$ ‘000’sssss $ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s$ ‘000’s

FINANCIAL ASSETSFINANCIAL ASSETSFINANCIAL ASSETSFINANCIAL ASSETSFINANCIAL ASSETSCash

................................................................................... 6,811 3,666 6,811 3,666

Term Deposit - Investment ............................................ 6,208 6,266 7,708 6,266Debtors

.............................................................................. 2,659 2,394 2,659 2,394

Total Financial AssetsTotal Financial AssetsTotal Financial AssetsTotal Financial AssetsTotal Financial Assets .................................................... 15,67815,67815,67815,67815,678 12,32612,32612,32612,32612,326 17,17817,17817,17817,17817,178 12,32612,32612,32612,32612,326

FINANCIAL LIABILITIESFINANCIAL LIABILITIESFINANCIAL LIABILITIESFINANCIAL LIABILITIESFINANCIAL LIABILITIESCreditors and Accruals .................................................. 1,417 2,044 1,417 2,044Advances for Capital & Other Works .......................... 118 68 118 68

Total Financial liabilitiesTotal Financial liabilitiesTotal Financial liabilitiesTotal Financial liabilitiesTotal Financial liabilities ................................................ 1,5351,5351,5351,5351,535 2,1122,1122,1122,1122,112 1,5351,5351,5351,5351,535 2,1122,1122,1122,1122,112

Carrying amounts reflect fair value for all recognised financial instruments identified.

21(d)21(d)21(d)21(d)21(d) Credit risk exposureCredit risk exposureCredit risk exposureCredit risk exposureCredit risk exposureThe Authority’s maximum exposure to credit risk at balance date for each class of recognised financial assets is the carrying amount of thoseassets as disclosed in the Statement of Financial Position.

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21(e)21(e)21(e)21(e)21(e) Concentration of credit riskConcentration of credit riskConcentration of credit riskConcentration of credit riskConcentration of credit riskThe Authority’s exposure to credit risk is low, as most of the revenue transactions represent a charge on the property or are under a BulkEntitlements Order. Credit risk is managed in the following ways:

— Payment is 30 days or instalments for some customers.

— Overdue payments are referred to debt collector approximately 6 weeks after becoming over due.

2222222222 RETAIL AND WHOLESALE OPERATIONSRETAIL AND WHOLESALE OPERATIONSRETAIL AND WHOLESALE OPERATIONSRETAIL AND WHOLESALE OPERATIONSRETAIL AND WHOLESALE OPERATIONSWholesale OperationsWholesale OperationsWholesale OperationsWholesale OperationsWholesale Operations Retail OperationsRetail OperationsRetail OperationsRetail OperationsRetail Operations

2000-20012000-20012000-20012000-20012000-2001 1999-20001999-20001999-20001999-20001999-2000 2000-20012000-20012000-20012000-20012000-2001 1999-20001999-20001999-20001999-20001999-2000

$’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’s

Storage Operator Charges .......................................................................... 4,750 4,591 28 130

Retail Usage Charges

................................................................................... - - 9,724 9,313

Other Revenue

............................................................................................... 67 110 4,005 2,446

TOTAL REVENUETOTAL REVENUETOTAL REVENUETOTAL REVENUETOTAL REVENUE ............................................................................................ 4,8174,8174,8174,8174,817 4,7014,7014,7014,7014,701 13,75713,75713,75713,75713,757 11,88911,88911,88911,88911,889

Operating & Maintenance Expenses

........................................................ 1,691 1,773 6,384 6,438

Depreciation

.................................................................................................. 1,649 937 3,635 3,291

Administration, Finance & Other Expenses ............................................. 706 562 2,625 2,241

Internal Storage Operator Costs* .............................................................. - - 1,356 1,258

Other Bulk Supply Charges ......................................................................... - - - -

TOTAL EXPENSESTOTAL EXPENSESTOTAL EXPENSESTOTAL EXPENSESTOTAL EXPENSES ......................................................................................... 4,0464,0464,0464,0464,046 3,2723,2723,2723,2723,272 14,00014,00014,00014,00014,000 13,22813,22813,22813,22813,228

Total Profit/(Loss) for the yearTotal Profit/(Loss) for the yearTotal Profit/(Loss) for the yearTotal Profit/(Loss) for the yearTotal Profit/(Loss) for the year .................................................................... 771771771771771 1,4291,4291,4291,4291,429 (243)(243)(243)(243)(243) (1,339)(1,339)(1,339)(1,339)(1,339)

* Internal Charge eliminated in Operating Statement

Investments .................................................................................................... - - 5,000 7,708

Other Assets

................................................................................................... 7,466 6,003 2,296 299

Fixed Assets

................................................................................................... 289,799 287,940 135,854 137,387

Total AssetsTotal AssetsTotal AssetsTotal AssetsTotal Assets .................................................................................................... 297,265297,265297,265297,265297,265 293,943293,943293,943293,943293,943 143,150143,150143,150143,150143,150 145,394145,394145,394145,394145,394

C a s h F l o w i n f o r m a t i o n ;

Cash Used in Investing Activities .............................................................. (753) (3,637) (1,085) (3,644)

Cash From Finance Activities ..................................................................... (380) (418) - -

Wholesale operations account for the harvesting and storage of water on behalf of external and internal customers who hold bulk water entitlementsin that storage.

The internal Storage Operator Charges are included in the revenue of the Wholesale Business and the expense of the Retail Business above and areeliminated in the Operating Statement. To reconcile this Note to the Authority Operating Statement, subtract $1356 from the Storage Operator Chargesabove of $4750 + $28, which results in the Storage Operator Charges figure of $3422 in the Operating Statement. The corresponding internal expenditureelimination is already shown above.

Transfer pricing to internal customers is based on full cost recovery with zero rate of return.

2323232323 RECONCILIATION OF CASHRECONCILIATION OF CASHRECONCILIATION OF CASHRECONCILIATION OF CASHRECONCILIATION OF CASH 2000-20012000-20012000-20012000-20012000-2001 1999-20001999-20001999-20001999-20001999-2000

$’000’s$’000’s$’000’s$’000’s$’000’s $’000’s$’000’s$’000’s$’000’s$’000’sFor the purposes of the statement of cash flows, cash includes cash on hand and at bank, andinvestments in money market instruments. Cash at the end of the financial year as shown in theStatement of Cash Flows is reconciled to the related item in the Statement of Financial Position as follows:

Cash on hand and at bank

............................................................................................................................ 6,8

11 3,666

2424242424 RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIESRECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIESRECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIESRECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIESRECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES

TO PROFIT FROM ORDINARY ACTIVITIES FOR THE YEARTO PROFIT FROM ORDINARY ACTIVITIES FOR THE YEARTO PROFIT FROM ORDINARY ACTIVITIES FOR THE YEARTO PROFIT FROM ORDINARY ACTIVITIES FOR THE YEARTO PROFIT FROM ORDINARY ACTIVITIES FOR THE YEARProfit / (loss) from Ordinary Activities ........................................................................................................ 528 (7,249)

Depreciation

...............................................................................................................................

....................

5,283 4,228

Increase/(Decrease) in provision for employee entitlement ................................................................. (41) 34

Change in operating assets and liabilities:

Decrease/(Increase) in inventories ............................................................................................ 35 (21)

Decrease / (Increase) in trade receivables .............................................................................. (265) (65)

Decrease / (Increase) in other assets ........................................................................................ (84) (10)

Increase / (Decrease) in advances for capital ......................................................................... 50 8

Increase/(Decrease) in trade creditors ..................................................................................... (627) 1,507

Loss / (Gain) on sale of fixed assets .......................................................................................................... 484 221

Loss on abnormal transfer of Woady Yaloak Scheme

............................................................................ 7,339 -

Net Cash Provided by Operating ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Provided by Operating Activities ............................................................................................... 5,3635,3635,3635,3635,363 5,9925,9925,9925,9925,992

2525252525 RESPONSIBLE PERSONS DISCLOSURERESPONSIBLE PERSONS DISCLOSURERESPONSIBLE PERSONS DISCLOSURERESPONSIBLE PERSONS DISCLOSURERESPONSIBLE PERSONS DISCLOSUREThe names of the Responsible Persons of Gippsland and Southern Rural Water Authority during 2000-2001 are: Minister for Environment and Conservation- Hon. Sherryl Garbutt MP.

Members of Authority Board: Mr A Pappin (Chairman); Dr G Walsh (Deputy Chairman); Mr G Crick; Mr P Foster; Mr D Koch; Mrs J Liley; Mrs JMcMillan; Mr J Nicol; Mr J Tilleard.

The Chief Executive is Dr Martin Kent (Accountable Officer).

Remuneration received, or due and receivable by Responsible Persons from the Authority, amounted to $177,889 (1999-2000 $177,889).

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Number of Responsible Persons from the Authority are shown below in their relevant remuneration bands:

2000-20012000-20012000-20012000-20012000-2001 1999-20001999-20001999-20001999-20001999-2000

$0 - $9,999 ........................................................................................................................................ - -

$10,000-$19,999 ............................................................................................................................... 7 7

$20,000-$29,999 ............................................................................................................................... 1 1

$30,000-$39,999 ............................................................................................................................... 1 1

There were no retirement benefits paid in conjunction with the retirement of Responsible Persons, nor were there any transactions between theAuthority and any Responsible Person other than those which occurred within the normal arms length transaction between the Authority and itscustomers.

The number of Executive Officers whose total remuneration exceeds $100,000 during 2000-2001 are shown below in their relevant income bands:

2000-20012000-20012000-20012000-20012000-2001 1999-20001999-20001999-20001999-20001999-2000

$100,000-$109,999 ........................................................................................................................... - 1$120,000-$129,999 ........................................................................................................................... 1 1

$130,000-$139,999 ........................................................................................................................... 1 -

The total remuneration for the year of the above Executive Officers amounted to $253,622 (1999-2000 $230,000).

2626262626 CONTINGENT LIABILITIESCONTINGENT LIABILITIESCONTINGENT LIABILITIESCONTINGENT LIABILITIESCONTINGENT LIABILITIESThe Authority has a contingent liability for water obtained from Melbourne Water Corporation from the Thomson Reservoir in accordance with anAgreement signed on 6 June 2000.

The Bank Guarantee may be exercised in accordance with clause 13 of the Agreement if SRW is unable to repay water volumes owed by it as detailedin Schedule 1 of the Agreement, which provides for repayment over a nominal five year period.

The total value of the Bank Guarantee is $1,207,500.

SRW has established an interest bearing deposit (see note10) as security against the Bank Guarantee, which remains in place until the above obligationshave been met.

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STATUTORY CERTIFICATE

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AUDITOR GENERALS REPORT

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CO

MP

LIA

NC

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COMPLIANCE INDEXCOMPLIANCE INDEXCOMPLIANCE INDEXCOMPLIANCE INDEXCOMPLIANCE INDEXThe Annual Report of the entity is prepared in accordance with the Financial Management Act 1994 Financial Management Act 1994 Financial Management Act 1994 Financial Management Act 1994 Financial Management Act 1994 and the Directions of the Minister for Finance.This index has been prepared to facilitate identification of compliance with statutory disclosure and other requirements.

CLAUSECLAUSECLAUSECLAUSECLAUSE DISCLOSUREDISCLOSUREDISCLOSUREDISCLOSUREDISCLOSURE PAGEPAGEPAGEPAGEPAGE

REPORT OF OPERATIONSREPORT OF OPERATIONSREPORT OF OPERATIONSREPORT OF OPERATIONSREPORT OF OPERATIONS

Charter & PurposeCharter & PurposeCharter & PurposeCharter & PurposeCharter & Purpose9.1.3 (i) (a) Manner of establishment and Relevant Minister

................................................................................................. 30

9.1.3 (i) (b) Objectives, functions, powers and duties

.............................................................................................................. 2, 30

9.1.3 (i) (c) Services provided and persons or sections of community served

.................................................................. 2, 3, 30

Management & StructureManagement & StructureManagement & StructureManagement & StructureManagement & Structure9.1.3 (i) (d) (i) Names of governing board members, audit committee and chief executive officer

.................................. 30

9.1.3 (i) (d) (ii) Names of senior offic holders and brief description of each office

................................................................ 30

9.1.3 (i) (d) (iii) Chart setting out organisational structure

............................................................................................................. 3

9.1.3 (i) (e) Workforce data and application of merit and equity principles

....................................................................... 30

9.1.3 (i) (f) Application and operation of FOI Act 1982

............................................................................................................. 30

Financial and Other InformationFinancial and Other InformationFinancial and Other InformationFinancial and Other InformationFinancial and Other Information9.1.3 (ii) (a) Summary of financial results with previous four year comparatives

.............................................................. 11

9.1.3 (ii) (b) Summary of significant changes in financial position

........................................................................................ NA

9.1.3 (ii) (c) Operational and budgetary objectives for the year and performance against those objectives

............. 10-29

9.1.3 (ii) (d) Major changes or factors affecting achievement of objectives

...................................................................... 10-29

9.1.3 (ii) (e) Events subsequent to balance date

......................................................................................................................... NA

9.1.3 (ii) (g) Consultancies <$100,000 — Number and total cost of consulting engagements

........................................ 42

9.1.3 (ii) (h) Extent of compliance with Building Act 1993

........................................................................................................ 30

9.1.3 (ii) (i) Statement that information listed in Part 9.1.3 (iv) is available on request

.................................................... 30

9.1.3 (ii) (k) Statement on implentation and compliance with National Competition Policy

............................................ 30

9.8.2 (i) A statement of Occupational health and Safety (OHS) matters

........................................................................ 30

9.8.2 (ii) OHS performance measures

...............................................................................................................................

....... 30

FINANCIAL STATEMENTSFINANCIAL STATEMENTSFINANCIAL STATEMENTSFINANCIAL STATEMENTSFINANCIAL STATEMENTS

PreparationPreparationPreparationPreparationPreparation9.2.2 (ii) (a) Statement of preparation on an accrual basis

..................................................................................................... 38

9.2.2 (ii) (b) Statement of compliance with Australian Accounting Standards and associated pronouncements

.... 38

9.2.2 (ii) (c) Statement of compliance with accounting policies issued by the Minister for Finance

........................... 38

Statement of Financial OperationsStatement of Financial OperationsStatement of Financial OperationsStatement of Financial OperationsStatement of Financial Operations9.2.2 (i) (a) A statement of financial operations for the year

.................................................................................................. 35

9.2.3 (ii) (a) Operating revenue by class

...............................................................................................................................

........

35, 39

9.2.3 (ii) (b) Investment income by class

...............................................................................................................................

....... 359.2.3 (ii) (c) Other material revenue by class including sale of non-goods assets and contributions of assets

........ 35, 39

9.2.3 (ii) (d) Material revenues arising from exchanges of goods or services

................................................................... NA

9.2.3 (ii) (e) Depreciation, amortisation or diminution in value

............................................................................................... 40, 41

9.2.3 (ii) (f) Bad and doubtful debts

...............................................................................................................................

................ 409.2.3 (ii) (g) Financing costs

...............................................................................................................................

.............................. NA9.2.3 (ii) (h) Net increment or decrement on the revaluaiton of each category of assets

............................................... 41

9.2.3 (ii) (i) Auditor-General’s fees

...............................................................................................................................

.................. 40

Statement of Financial PositionStatement of Financial PositionStatement of Financial PositionStatement of Financial PositionStatement of Financial Position9.2.2 (i) (b) A statement of financial position for the year

....................................................................................................... 36

AssetsAssetsAssetsAssetsAssets9.2.3 (iii) (a) (i) Cash at bank or in hand

...............................................................................................................................

...............

36, 44

9.2.3 (iii) (a) Iii) Inventories by class

...............................................................................................................................

......................

36, 38

9.2.3 (iii) (a) (iii) Receivables, including trade debtors, loans and other debtors

....................................................................... 36, 40

9.2.3 (iii) (a) (iv) Other assets, including prepayments

...................................................................................................................... 36

9.2.3 (iii) (a) (v) Investments by class

...............................................................................................................................

....................

36, 40

9.2.3 (iii) (a) (vi) Property, plant and equipment

...............................................................................................................................

... 40, 419.2.3 (iii) (a) (vii) Intangible assets

...............................................................................................................................

........................... NALiabilitiesLiabilitiesLiabilitiesLiabilitiesLiabilities9.2.3 (iii) (b) (iii) Trade and other creditors

...............................................................................................................................

............

36, 41

9.2.3 (iii) (b) (v) Provisions, including employee entitlements

........................................................................................................ 36, 41

EquityEquityEquityEquityEquity9.2.3 (iii) (c) (i) Authorised capital

...............................................................................................................................

......................... NA9.2.3 (iii) (c) (ii) Issued capital

...............................................................................................................................

.................................

36, 41

9.2.3 (iii) (d) Reserves, and transfers to and from reserves (shown separately)

................................................................. 36, 41

Statement of Cash FlowsStatement of Cash FlowsStatement of Cash FlowsStatement of Cash FlowsStatement of Cash Flows9.2.2 (i) (c) A statement of cash flows for the year

................................................................................................................... 37

Notes to the Financial StatementsNotes to the Financial StatementsNotes to the Financial StatementsNotes to the Financial StatementsNotes to the Financial Statements9.2.3 (iv) (b) Contingent liabilities

...............................................................................................................................

..................... 459.2.3 (iv) (c) Commitments for expenditure

...............................................................................................................................

.... 429.2.3 (iv) (d) Government grants received or receivable and source

..................................................................................... 39

9.2.3 (iv) (e) Employee superannuation funds

.............................................................................................................................. 4

29.4.2 Transactions with responsible persons and their related parties

................................................................... 44, 45

9.7.2 Motor vehicle lease commitments

........................................................................................................................... 42

21(e)21(e)21(e)21(e)21(e) Concentration of credit riskConcentration of credit riskConcentration of credit riskConcentration of credit riskConcentration of credit riskThe Authority’s exposure to credit risk is low, as most of the revenue transactions represent a charge on the property or are under a BulkEntitlements Order. Credit risk is managed in the following ways:

— Payment is 30 days or instalments for some customers.

— Overdue payments are referred to debt collector approximately 6 weeks after becoming over due.

Internet Copy

Internet Copy

Southern Rural Water - Annual Report 2000 - 2001

Southern Rural WSouthern Rural WSouthern Rural WSouthern Rural WSouthern Rural Wateraterateraterater

88 Johnson Street

PO Box 153 Maffra

Victoria 3860

TTTTTelephone: (03) 5139 3100elephone: (03) 5139 3100elephone: (03) 5139 3100elephone: (03) 5139 3100elephone: (03) 5139 3100

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southern rural water2 southern rural water - annual report 2000 - 2001 a highlight of the year was...

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