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

39
Minister for Lands




Wentworth Park Sporting Complex Trust



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Auditor-General’s Report to Parliament 2009 Volume Nine __________________________________________ 41
Wentworth Park Sporting Complex Trust


AUDIT OPINION

The audit of the Trust’s financial report for the year ended 30 June 2009 resulted in an unqualified
Independent Auditor’s Report.

KEY ISSUES

Unresolved Loan Repayment – Repeat Issue

I have previously recommended that the Trust endeavour to reach agreement with
Greyhound Racing NSW regarding the treatment of monies provided in 1985-87 by the
former Racecourse Development Fund.


The Trust records a loan of $6.5 million payable to Greyhound Racing NSW. The money was
provided in the period 1985-87 by the former Racecourse Development Fund (the Fund) to finalise
construction of the main grandstand. At that time, grant status was not attached to the loan. The
loan was finally transferred to Greyhound Racing NSW following privatisation of the TAB and
winding up of the Fund.

The Trust’s Board advised that it does not have the capacity to repay the loan and believes that, in
respect of original arrangements, there is no obligation for repayment. The Trust and Greyhound
Racing NSW continue to discuss the status of the loan and the Trust believes the issue will be
finalised in 2009-10.

Licence termination

In November 2008, after 75 years of racing at Wentworth Park, the NSW National Coursing
Association terminated its licence with the Trust and ceased metropolitan racing operations. The
NSW Greyhound Breeders, Owners and Trainers Association is expected to conduct greyhound
racing 104 times per year as sole licensee.

FINANCIAL INFORMATION

Year ended 30 June 2009 2008
$’000 $’000

Revenue 674 468

Expenses 2,853 1,850
Deficit 2,179 1,382
Net assets (at 30 June) 39,468 39,863


The increase in expenditure was largely due to a $332,000 decrement on the revaluation of Trust
buildings (not including the grandstand), an increase in repairs and maintenance costs of $199,000,
and $66,000 in demolition costs incurred to remove an old grandstand.

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Wentworth Park Sporting Complex Trust ____________________________________________________________

42 ___________________________________________ Auditor-General’s Report to Parliament 2009 Volume Nine
TRUST ACTIVITIES

The Trust is established under the Crown Lands Act 1989. Its main function is the care, control and
management of the Reserve (Wentworth Park Sporting Complex). It is under the control of the
Minister for Lands.

The Trust is empowered to grant leases, subject to Ministerial approval, and licences for the use of
the Wentworth Park Sporting Complex for prescribed purposes.

For further information on the Trust refer to www.wentworthparksport.com.au
.
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43

Minister for Planning




Sydney Olympic Park Authority



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Auditor-General’s Report to Parliament 2009 Volume Nine __________________________________________ 45
Sydney Olympic Park Authority


AUDIT OPINION

The audits of the Authority and its controlled entities’ financial reports for the year ended
30 June 2009 resulted in unqualified Independent Auditor’s Reports.

Unless otherwise stated, the following commentary relates to the consolidated entity.


OTHER INFORMATION

We identified opportunities for improvement to accounting and internal control procedures and

have reported them to management.

Master Plan 2030

The Authority has adopted Master Plan 2030. The Master Plan is aimed at providing a
comprehensive blueprint for the sustainable development of the Park over the next 21 years. The
Authority anticipates that construction of new high-grade commercial office space, medium to high
density housing, education campus facilities and retail outlets will support an expected daily
population of up to 45,000 people by 2030.

Major Projects at the Park

In the 2009 financial year the Commonwealth Bank of Australia completed the last of three new
office buildings. The complex provides 61,000 square metres of office space and accommodates
3,500 staff.

Construction of a $51.0 million sports and specialist hospital is expected to commence in mid 2010.
It will cater to an expected 155,000 patient visits per year when opened.

Other developments planned or underway include:

 $320 million residential development
 $20 million office and retail development
 $20 million serviced apartment complex

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Sydney Olympic Park Authority _____________________________________________________________________

46 ___________________________________________ Auditor-General’s Report to Parliament 2009 Volume Nine

FINANCIAL INFORMATION

Abridged Consolidated Income Statements

Year ended 30 June Consolidated Parent
2009 2008 2009 2008
$’000

$’000

$’000

$’000

Employee related 19,824 19,798
Personnel services 565 1,134 19,755 20,212
Operating expenses 53,014 46,230 52,367 45,837
Depreciation and amortisation 50,706 40,547 50,706 40,547
Grants and subsidies 800 3,800 1,520 4,760

TOTAL EXPENSES 124,909 111,509 124,348 111,356

TOTAL REVENUE 44,762 39,233 45,464 39,644
Gain/(loss) on sale of non-current
assets
(129) 993 (129) 993
Other gains 21,946 19,859 21,946 19,859

NET COST OF SERVICES 58,330 51,424 57,067 50,860

Government contributions 34,914 20,660 34,106 20,070

DEFICIT 23,416 30,764 22,961 30,790


The decrease in grants and subsidies expense is due to a one off $3.0 million contribution paid to
the Roads and Traffic Authority for intersection upgrade works in the previous year.

Total revenue increased mainly due to rises in car park receipts, commercial leases and revenue
from the Sydney Olympic Park Aquatic and Athletic Centres.

Other gains primarily represent the emerging value of the right to receive assets over the
concession period.

The increase in government contributions is mainly due to lower asset sales transferred to the
Crown Entity, due to the final instalment of $19.0 million being paid on the former Lidcombe
Hospital site in the prior year.

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_____________________________________________________________________ Sydney Olympic Park Authority

Auditor-General’s Report to Parliament 2009 Volume Nine __________________________________________ 47
Abridged Consolidated Balance Sheets

At 30 June Consolidated Parent
2009 2008 2009 2008
$’000

$’000

$’000 $’000





Current assets 52,112 54,008 50,522 51,918
Non-current assets 1,768,636 1,701,713 1,768,636 1,701,713

TOTAL ASSETS 1,820,748 1,755,721 1,819,158 1,753,631

Current liabilities 15,621 15,515 15,569 15,419
Non-current Liabilities 55,345 46,353 55,345 46,353

TOTAL LIABILITIES 70,966 61,868 70,914 61,772

NET ASSETS 1,749,782 1,693,853 1,748,244 1,691,859


The increase in non-current assets is primarily due to the revaluation of infrastructure which
increased by $79.3 million.

Non-current liabilities rose due to the deferral of income received in advance for long term leases
of land sites.


AUTHORITY’S ACTIVITIES

The Authority was established in July 2001 by the Sydney Olympic Park Authority Act 2001, as a

statutory body. It assumed certain assets and rights of the Olympic Coordination Authority,
Bicentennial Park Trust and the State Sports Centre.

Under the Act, the Authority:

 promotes, coordinates and manages the orderly and economic development and use of
Sydney Olympic Park, including the provision and management of infrastructure
 conducts cultural, sporting, educational, commercial, tourist, recreational, entertainment,
and transport activities and facilities
 protects and enhances the natural and cultural heritage of Sydney Olympic Park, including
the Millennium Parklands
 provides, operates, and maintains public transport facilities within Sydney Olympic Park
 liaises with and maintains arrangements with Olympic organisations, such as the International
Olympic Committee and the Australian Olympic Committee Incorporated.

For further information on the Authority, refer to www.sopa.nsw.gov.au
.

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Sydney Olympic Park Authority _____________________________________________________________________

48 ___________________________________________ Auditor-General’s Report to Parliament 2009 Volume Nine
CONTROLLED ENTITIES

The following controlled entities have not been reported on separately as they are not considered
material by their size or the nature of their operations to the consolidated entity.

For further financial and other information on these entities we have listed the entities’ websites.

Entity Name Website

Office of the Sydney Olympic Park Authority *
Parklands Foundation Limited www.parklandsfoundation.org.au

Sydney Olympic Park Authority Sydney
Olympic Park Aquatic and Athletic
Centres Division
*

* These entities do not have websites.

On 10 September 2009, the Authority as the sole member of Parklands Foundation Limited resolved
to wind up the Foundation. Any existing programs will be consolidated into the Authority.
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49
Minister for Sport and Recreation




Centennial Park and Moore Park Trust

Centennial Parklands Foundation

*Hunter Region Sporting Venues Authority

Sydney Cricket and Sports Ground Trust

Wollongong Sportsground Trust


Refer to Appendix 1 for:

Boxing Authority of New South Wales

New South Wales Institute of Sport

Parramatta Park Trust

State Sports Centre Trust

Sydney 2009 World Masters Games Organising Committee





* The audit was incomplete at the time of compiling this Volume.
The comment will be included in a later 2009 Volume.
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