annual report 2010-11 final executed report 2010-11.pdf · annual report 2010-11 port road, po box...

AAnnnnuuaall RReeppoorrtt

22001100--1111

Port Road, PO Box 113, Hindmarsh SA 5007, Telephone 61 8 8208 2222, Facsimile: 61 8 8208 2233, Internet: www.theAEC.net Email: [email protected]

Contents

CHAIRMAN'S INTRODUCTION .................................................................................... 1 ROLE AND OBJECTIVES .................................................................................................... 3 ORGANISATIONAL CHART ........................................................................................... 6 REVIEW OF OPERATIONS ............................................................................................... 7 Arena Business ............................................................................................................ 7 Food & Beverage ........................................................................................................ 8 Entrepreneurial Events .............................................................................................. 8 Corporate Hospitality ............................................................................................... 8 Administration ............................................................................................................ 8 Building Services ......................................................................................................... 8 The AEC’s Strategic Plans and the Relationship of the Plans to Government Objectives ........................................................................................... 9 HUMAN RESOURCES ....................................................................................................... 10 OTHER MATTERS .............................................................................................................. 18 FREEDOM OF INFORMATION ..................................................................................... 22 FINANCIAL STATEMENTS .............................................................................................. 24

Board Planning Day

7 February 2007

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Chairman's Introduction Fiscal Year 2010-11 has been a highly successful year for the Adelaide Entertainment Centre (AEC), with the AEC achieving:

• Record attendances – more than 415,588 concertgoers • Record number of acts performing at the venue – 73 • Record number of publicly ticketed performances – 105 • Record gross box office takings – in excess of $33M • Record function sales – up 38% on previous record • Record profit from trading activities - $5.4M

The opening of the AEC Facility Enhancement Project, including new Theatre, and the extension of tram services to the AEC in early 2010 afforded the AEC the exciting opportunity to promote highly marketable and accessible world-class facilities over the course of 2010-11. The abovementioned achievements indicate that the improved facilities and services have been wholeheartedly embraced by South Australians, music promoters, artists and other important customers. The high Australian dollar and strength of the Australian economy relative to other global economies resulted in a buoyant international touring market. Importantly, South Australia continues to fight well above its weight in attracting leading international contemporary live acts. The AEC played host to many of the world’s biggest acts over the past year, including: Lenard Cohen, Metallica, Neil Diamond, Rihanna, Katy Perry, Justin Bieber, Kylie, Usher, Michael Buble, Bob Dylan, Chris Brown, Good Charlotte, Miley Cyrus, Billy Connolly, Linkin Park, Guns ‘n Roses, Santana, Keith Urban, Jack Johnson, The Gorillaz, Paramore; among many, many others. Functions continue to be an important component of the AEC business as they assist in underpinning the operating profitability of the Centre. The AEC’s improved facilities and marketing efforts resulted in strong function sales growth in 2010-11. The AEC’s corporate facilities remain at 100% occupancy. The AEC is in the enviable position of having a waiting list for its corporate hospitality offerings, allowing uncommon vacancies to be filled immediately throughout the year. The AEC established a Park & Ride facility in conjunction with the State Government with the extension of tram services to the Centre in March 2010. The Park & Ride facility, the largest of its type in South Australia, continues to offer city commuters the opportunity to park in the Centre’s car park for $2 per day when not in use for events. The initiative has proven to be highly successful with the AEC car park regularly filling to capacity during regular business hours. Whilst the AEC has an important role to play in making Adelaide a more attractive liveable city, it is pleasing that this role continues to be fulfilled without the AEC being reliant on recurrent government funding. Record operating profits in 2010-11 will ensure that the Centre continues not to be a burden on taxpayers from an operating perspective and reinforces that the business is managed in a manner that allows it to maximise returns when the international touring market is buoyant. Chief Executive Anthony Kirchner and his senior management team, made up of Sally Arch, Ross Beale, Mark Braby, Coralie Cheney, Marie Hannaford, Janine Webb (joined February 2011) and Tommy Pavic (departed January 2011), are to be congratulated on their highly proficient management of the AEC. Thank you also to all the Venue and Event staff of the AEC who work so hard to provide outstanding service.

Adelaide Entertainments Corporation

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Minister for Tourism, Hon. John Rau, has provided strong leadership which has been greatly appreciated by the AEC Board and management. The Minister’s proactive interest and support has been invaluable. Thank you also to the Board of the AEC; consisting of Jennie Bell, Alan Herald, Geoffrey Pitt, Bill Spurr, Joanne Staugas and Gay Wallace. Their in-depth knowledge and understanding of the business, as well as hard work and commercial acumen, has proven important to the AEC’s continuing success. On 20 July 2011, the AEC will celebrate its 20 years of bringing the very best in contemporary world-class live entertainment to the people of South Australia. The AEC is well positioned to ensure that it maximises the benefits it provides to the South Australian community for many years to come. Robert Foord Chairman


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Role and Objectives

Mission Statement

The Adelaide Entertainment Centre will provide leading entertainment through professional event and function management, quality venues and customer

service for the social and commercial benefit of the public of South Australia.

In order to meet our mission the Adelaide Entertainment Centre has adopted the following standards and strategies:

• Ethical Standards We will manage the Adelaide Entertainment Centre for the benefit of the people of South

Australia.

• Financial Strategy We will manage the Adelaide Entertainment Centre in a commercially responsible manner.

• Corporate Citizenship Strategy We will take a community leadership role in terms of developing the organisation, our people

and assets in new, interesting and innovative directions for South Australia.

• Staff Strategy We value our staff and will treat them with respect, encourage their development and reward

their contribution.

• Environmental Strategy We wish to 'tread as lightly as possible' on the earth.

Functions of the Corporation The functions of the Corporation include managing and operating the AEC facilities; managing, promoting and sponsoring events at the site or elsewhere; managing and growing AEC businesses and fostering and assisting the development of the site to enhance its commercial potential.

Legislative Authority The Adelaide Entertainments Corporation was established by the Public Corporations (Adelaide Entertainments Corporation) Regulations 1999, pursuant to the Public Corporations Act 1993, on 4 February 1999 to manage the AEC as an agency of the Minister for Tourism. A new Board of Directors for the Centre was formally appointed on 8 February 1999. The current Board consists of seven non-executive directors.


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Corporation’s Relationship to Other Agencies within the Minister’s Area of Responsibility The AEC Board and management, in consultation with the Minister for Tourism, established the following corporate objectives in its Strategic Plan 2010-11/2011-12:

• Provide outstanding product and service to the South Australian community.

• Maintain and improve the AEC facility so that it remains one of the leading arenas in the Australian market.

• Develop and build new revenue streams to enable the AEC to achieve annual operating profits, and bullet-proof the AEC against downturns in international touring.

• Foster and assist development of the AEC site into a vibrant precinct.

Corporate Governance On incorporation, the Adelaide Entertainments Corporation established an Audit Committee of the Board, pursuant to section 18 of the Regulations of Incorporation. This Committee considers:

• all matters that relate to the financial affairs of the Corporation, • the conduct and report of the external audit by the Auditor General, • the conduct and reports of the internal audit programme, • the Corporation’s risk management strategies and exposures as they arise, and • any other matters referred to it by the Board.

The Members of the Audit Committee during 2010-11 were:

• Board member Geoffrey Pitt (Chair), • Board member Alan Herald, • Board member Gay Wallace, • Alternate delegate – Board member Bill Spurr, • and AEC Chief Financial Officers Tommy Pavic (July 2010-January 2011) and Janine Webb

(February 2011-June 2011) were the AEC’s senior management representative on the Committee.


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Services Provided The AEC is unique in South Australia, and is the State’s leading contemporary indoor live entertainment venue. The Centre has two major performance spaces – the Arena (capacity 12,000) and Theatre (2,900). In addition to concerts, spectaculars and sporting events, the AEC hosts trade shows, exhibitions, seminars and banquets, and self-entrepreneurs events when required to ensure the Centre maintains a healthy event calendar. The Food & Beverage operations offer food and beverage for patrons via foyer outlets, as well as sophisticated in-house catering operations for functions, corporate suites, artists and crew. Corporate Hospitality is provided in the form of 32 corporate suites, which are generally leased for 2-5 year terms.

The AEC also has a thriving functions business with four dedicated function spaces – Arena, Theatre, Star Room and Revelations Chapel. Other assets under the AEC’s ownership/control include:

• Approximately 850 carparks • Enzo’s Restaurant (Under lease to private operator – formerly Commercial Hotel) • Shops (4) on the corner of Port Road and Mary Street • Heritage listed building on Mary Street, tenanted by the Kumangka Youth Service • The heritage listed Revelations Chapel off Mary Street

In 2006-07, the AEC ‘sold’ long-term leases over two allotments located on the Port Road and Adams Street corner of the AEC Site. New television studios for Channel Seven Adelaide have been constructed on one of these allotments to date. The AEC is an important community facility. Since opening it has staged more than 1,400 performances, attracting more than 6 million concertgoers. It is achieving its vision of making Adelaide a more attractive, livable city.


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Organisational Chart – as at 30 June 2011


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Review of Operations

Venue Services Venue Services is responsible for venue hiring, event management and production, and merchandising. Over 415,000 patrons attended 105 publicly ticketed performances in 2010-11, which consisted of 73 different acts/events. The venue showcased an extremely wide variety of performances:

• CONCERTS featuring artists such as Miley Cyrus, Kylie Minogue, Bliss N Eso, Leonard Cohen, Metallica, Ben Folds, Chicago, George Benson, Jason Derulo, Justin Bieber, Brian Wilson, Andre Rieu, Pendulum, Katy Perry, George Dalaras, Celtic Woman, Chris Brown, Katherine Jenkins, Bob Dylan with BB King, Pat Benetar, Good Charlotte, Keith Urban, Paul Weller, The Script, Smashing Pumpkins, John Butler Trio, Usher, Alred Jones, Santana, Ke$ha, Rihanna, Neil Diamond, Roxy Music, Phoenix, Billy Connolly, Linkin Park, Gorillaz, Guns N’ Roses, Jack Johnson.

• ATTRACTIONS such as Cirque Du Soleil, WWE Smackdown, The Wiggles, Walking with Dinosaurs, Crusty Demons, The Music of Andrew Lloyd Webber, Disney Live! Three Fairy Tales.

• PRIVATE HIRES including 2010 ANZ Championship Netball Grand Final, Holden Netball Test (Aust. V NZ), ASO plays Queen, ASO plays Miles Davis, Flight Centre Travel Expo, Wakakirri, Watchtower Convention, Spring Home Show, School Education Expo.

The record number of acts and performances required an unwavering commitment from AEC Venue and Event staff and they continued to demonstrate extraordinary passion and commitment for their work. The achievements of the AEC over the past year are largely due to the extraordinary deeds and support of its venue hirers, and in particular the AEC acknowledges the significant contribution of the following Australian promoters who were again responsible for the majority of acts coming to South Australia:

• Michael Coppel Presents • Frontier Touring Company • Dainty Consolidated Entertainment • Chugg Entertainment • Andrew McManus Presents

Guest Services Guest Services provides outstanding service and hospitality to guests attending functions and events at the AEC. The major platforms for generating revenue are:

• Function activities • Concession sales during events • Corporate suite food and beverage sales • Backstage artist and crew catering


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Food and Beverage sales contributed 37.7% of total AEC operating revenue in 2010-11. Highlights for the year included:

• Record function sales and profitability • Record concessions revenue and profitability • Record corporate suite catering revenue and profitability

Entrepreneurial Events The AEC established an entrepreneurial events capability in early 2001, in response to the low Australian-dollar which was stopping many international acts from touring Australia. The AEC has chosen not to proactively entrepreneur events over the past year due to strong market conditions but retains this capability in case market conditions deteriorate. The AEC intends to undertake entrepreneurial events on a needs basis only.

Corporate Hospitality The AEC maintained 100% occupancy of both its Corporate Suites and Corporate Club membership throughout 2010-11. The continuous flow of events ensured that the AEC’s corporate clients received exceptional value for money, and the AEC is in the enviable position of having a waiting list for its corporate hospitality offerings which allows uncommon vacancies to be immediately filled in what is a highly competitive market.

Administration/Finance/Risk Management The Administration Division has responsibility for corporate governance and the financial management of the AEC. This includes insurance and legal issues, management of information systems, internal audit responsibilities, business planning and risk management. A key responsibility of the Administration Department is to assist business unit managers to achieve business targets through the provision of accurate and timely information and systems support. The Audit Committee continues to closely scrutinise and review all aspects of corporate governance and financial management throughout 2010-11, and this has seen the AEC further develop robust internal controls across all areas of the business. The Corporation maintains a comprehensive Risk Register, Financial Management Compliance Program, and policy and procedure framework. The Audit Committee also oversees the implementation of the AEC’s extensive internal auditing program.

Building Services

The AEC implemented the following significant building services projects throughout 2010-11:

• Upgrade of all backstage toilet facilities • Upgrade Event Staff amenities and kitchen facilities • Purchase of new Arena/Theatre ‘gang’ seating to improve patron experience and comfort • New Theatre/Arena theatrical curtaining • Upgrading of wireless internet capabilities throughout the venue

The AEC has the following properties which it leases to external tenants – all properties were leased as at 30 June 2011:

• Enzo’s Ristorante – Port Road • Ticketek – Shop 1 Port Road • Susie Wong’s – Shop 2 Port Road


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• Kudos Hair – Shop 3 Port Road • El Choto – Shop 4 Port Road • Kumangka – 6 Mary Street

The AEC’s Strategic Plans and the Relationship of the Plans to Government Objectives The AEC takes great pride in operating in a highly commercial manner to ensure that it is not a burden on South Australian tax payers from an operating perspective. The AEC operates in an industry where the demand for entertainment venues is determined by others, is often unpredictable, has short lead times and is subject to the vagaries of national and international markets. The AEC faces the challenge of optimising the mix of bookings for its entertainment and function businesses so that venue utilisation is maximised and its revenues exceed its base operating costs, which are largely fixed in the short run. A core objective of the AEC Board and management is to achieve a trading surplus, and this was again achieved in 2010-11. The Board and management are committed to growing the business so as to ‘bullet proof’ the Corporation from any future volatility of the touring industry, which is subject to conditions beyond the AEC’s control. Having completed major improvement and refurbishment works in early 2010, the strategic focus of the Board is to maximise the use and financial return from the assets under its management and to establish means by which the AEC can self-fund more substantial ongoing capital refurbishment and repairs/maintenance programs to ensure the AEC remains the best contemporary live entertainment venue within Australia. The AEC has taken a step towards achieving this outcome with a record trading performance in 2010-11. Functions remain an important strategy of the AEC to assist in the underpinning of the operational profitability of the Centre. The Board continues to work with management to implement strategies to develop trading revenues and operating efficiencies so as to ensure that the operational funding of the Centre continues to be derived from its own activities, independent of the State. The AEC will be investigating opportunities to increase car parking on the AEC site to assist the South Australian Government achieve its strategic target to reduce vehicle trips into the city through the expansion of its Park & Ride facility as there appears to be significant additional demand. Furthermore, the AEC believes it is well positioned to support the car parking requirements of major events staged in the city following the completion of the proposed Adelaide Oval and River Bank Precinct redevelopment projects given the AEC’s close proximity to the city and its excellent public transportation linkages.

In the longer term, the AEC intends, in consultation with Government, to utilise the remaining footprint of land to attract further complementary uses and higher returns from commercial development opportunities. The Board and management of the AEC are committed to providing the best possible outcome to the public of South Australia, within prudent financial limits that deliver value for money. The AEC’s Strategic Plan converges with the State Government’s vision for South Australia, particularly for a vibrant community and with key areas related to the Minister for Tourism’s portfolio. The AEC will continue to make a very valuable contribution to the social and economic fabric of South Australia.


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Human Resources

Employee Numbers, Gender and Status By Age, Appointment, Type and Gender - The table below includes permanent employees and those casual employees rostered to work as at the Last Pay Day in June 2011. Figures are therefore not comparable to previous years, due to variability of events held.

Persons 138 FTE’s 57.2 Gender % Persons % FTEs Male 39.1% 48.2% Female 60.9% 51.8%

Number of persons separated from the agency during the 2010-11 financial year

39

Number of persons recruited to the agency during the 2010-11 financial year

172

Number of persons on leave without pay at 30 June 2011

1

Number of Employees by Salary Bracket as at the Last Pay Day in June 2011

NUMBER OF EMPLOYEES BY SALARY BRACKET

Salary Bracket Male Female Total $0 - $50,399 17 33 50 $50,400 - $64,099 28 47 75 $64,100 - $82,009 3 1 4 $82,100 - $103,599 4 2 6 $103,600+ 2 1 3

TOTAL 54 84 138


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Status of Employees in Current Position Casual employees are those employees engaged for less than the normal full time hours per week rostered to work as at the last pay date of the financial year. Figures are therefore not comparable to previous years, due to variability of events held.

STATUS OF EMPLOYEES IN CURRENT POSITION

FTEs Ongoing Short-Term

Contract Long-Term

Contract Casual Total

Female 15.1 0 0 14.6 29.7 Male 13 0 3 11.6 27.6 TOTAL 28.1 0 0 26.2 57.3 Persons

Ongoing Short-Term Contract

Long-Term Contract

Casual Total

Female 16 0 0 68 84 Male 13 0 3 38 54 TOTAL 29 0 3 106 138

Executives

NUMBER OF EXECUTIVES BY STATUS IN CURRENT POSITION, GENDER AND CLASSIFICATION

Classification Ongoing Contract Tenured

Contract Untenured

Total

Male Female Male Female Male Female Male Female Total

Chief Executive Officer

0

0

1

0

0

0

1

0

1

Managers 1 2 1 0 0 0 2 2 4

TOTAL 1 2 2 0 0 0 3 2 5

Leave Management The table below includes permanent (full time and part time) employees only who are entitled to leave as at the last pay date of the financial year and does not include casual employees rostered to work as at the last pay date due to variability of events held and therefore variable staffing requirements.

AVERAGE DAYS LEAVE TAKEN PER FULL TIME EQUIVALENT EMPLOYEE

Leave Type 2010-11 2009-10 2008-09 2007-08 Sick Leave Taken 3.5 3.6 3.4 2.7 Family Carer’s Leave Taken 0.6 0.9 0.2 0.6 Special Leave with Pay 0.0 0.0 0.0 0.0


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Workforce Diversity o Age Profile

The table below includes permanent employees and those casual employees rostered to work as at the last pay date of the financial year. Figures are therefore not comparable to previous years, due to variability of events held.

NUMBER OF EMPLOYEES BY AGE BRACKET BY GENDER

Age Group (years)

Number of Employees (Persons) % of all AEC

employees

Workforce Benchmark*

Male Female Total 15-19 2 5 7 5.1 6.4% 20-24 7 15 22 15.9 10.4% 25-29 10 10 20 14.5 11.0% 30-34 7 10 17 12.3 10.1% 35-39 9 9 18 13.0 10.3% 40-44 7 10 17 12.3 11.0% 45-49 4 10 14 10.1 11.5% 50-54 3 12 15 10.9 11.4% 55-59 4 1 5 3.6 9.4% 60-64 0 2 2 1.4 5.5% 65+ 1 0 1 0.7 3.0%

TOTAL 54 84 138 100.0 100.0 *Source: Australian Bureau of Statistics Australian Demographic Statistics, 6291.0.55.001 Labour Force Status (ST LM8) by sex, age, state, marital status – employed – total from Feb78 Supertable, South Australia at May 2011.

o Indigenous Employees The table below includes permanent (full time and part time) employees as at the last pay date of the financial year and does not include casual employees rostered to work as at the last pay date due to variability of events held and therefore variable staffing requirements.

NUMBER OF ABORIGINAL AND/OR TORRES STRAIT ISLANDER EMPLOYEES

Male Female Total % of Agency

% Target*

Aboriginal/Torres Strait Islander

0 0 0 0 2%

* Target from South Australia’s Strategic Plan

o Cultural & Linguistic Diversity

The AEC does not collect cultural and linguistic information from its staff pool.


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o Disability

NUMBER OF EMPLOYEES WITH ONGOING DISABILITIES REQUIRING WORKPLACE ADAPTATION

Male Female Total % of Agency

TOTAL

0

0

0

0

Voluntary Flexible Working Arrangements – Permanent Staff The AEC recognises the increasing importance of flexible work options and family friendly work practices in maintaining a diverse, adaptive and high performing workforce able to meet current and future needs. Part-time employment, with fixed or flexible time arrangements, assists employees to manage their work and other responsibilities. Flexible working hours within defined parameters not only assist employees in creating a balance and ensuring that staff are not working excessive hours, but also supports the operation of the AEC business where operating times can fall outside of general business hours. By providing a flexible approach to working arrangements staff are better able to integrate their personal lives with their work lives, giving greater incentive and ability to improve the workplace culture, and increase job satisfaction and productivity.

NUMBER OF PERMANENT EMPLOYEES USING VOLUNTARY FLEXIBLE WORKING ARRANGEMENTS BY GENDER

Male Female Total

Purchased Leave 0 0 0 Flexitime 0 0 0 Compressed Weeks 0 0 0 Part-time and Job Share 0 1 1 Working from Home 0 0 0 TOTAL 0 1 1

Performance Development The AEC’s goal in relation to its staff is to have a competent and motivated workforce that contribute to the organisation’s overall goals with a key focus being to develop internal talent and maximise potential. The AEC supports continuous development of staff by encouraging a culture of ongoing feedback, recognising achievement and promoting continuous learning and development. The AEC encourages staff to learn new skills and knowledge that will apply directly to their current role and longer term career objectives. The yearly appraisal process for the permanent team, together with supervisor reports following every event or function for casual event staff, are the key performance management tools used to recognise individuals training and development needs to maximise their potential. This is done by reviewing past performance, recognising the achievements of staff, planning and identifying goals, and equipping individuals to meet the immediate and future challenges of their position.


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Every AEC employee is a unique and valuable part of the AEC team. Management continually strives to create an environment that will enable the AEC to retain the best people in the industry. The AEC’s goal is to provide employees with a satisfying workplace that promotes career planning and development. The AEC encourages career development from within the organisation and advertises most vacancies internally, providing opportunities for staff to progress through the organisation.

Leadership and Management Training Expenditure

Training and Development Total Cost % of Total Salary Expenditure

Total training and development expenditure $ 13,244 0.3%

Total leadership and management development expenditure

$ 0 0%

Structured, off-the-job and staff development training undertaken by both permanent and casual employees throughout the 2010-11 financial year included Senior First Aid, Defibrillation, Fire Warden, Production/AV, Client Relationships, Advanced Diploma of Accounting, Time Management, Budgeting & internal EBMS training.

Equal Employment Opportunity Programs The AEC is committed to the principles of equity and works to ensure that its policies and practices are in line with state and national legislation regarding all areas of equal opportunity. This includes discrimination based on sex, sexual orientation, age, race, ethnic origin or disability. The AEC is proud of its diverse staff mix and to achieve this treats all employees and job applicants on the basis of their individual merit. The policy ensures that the AEC has a workplace in which all employees have equal opportunity to advance and enhance their careers.

Occupational Health, Safety and Injury Management (OHS&IM) o Policies, Programs and Strategies:

• Policies Safety management in the workplace is a matter of critical importance to the AEC. As part of the AEC’s role in achieving a healthy and safe workplace, employees are provided with the opportunity to participate in discussions on matters with the potential to affect theirs or others health and safety. Strategies and policies are implemented in line with OH&S legislation aimed at continually improving the health and safety of the working environment.

• Programs For employees to understand the AEC’s health and safety expectations, they must be adequately trained. This begins with the induction process for all new staff. Ongoing training


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programs covering standards, procedures and safe systems of work ensure a systematic and preventative approach with regard to occupational health, safety and welfare issues. Training activities throughout the year included Senior First Aid, Defibrillation, Manual Handling, Equal Employment, Hold Ups, Food Safety and Emergency Evacuation.

• Strategies The AEC is committed to strategies that are directed towards effective management of risks. This ensures resources and effort are directed into the most important areas. OH&S is integrated into general operational management systems with clear responsibilities and accountabilities. The Risk Register is reviewed annually and monitored to ensure that changes within the workplace result in changes to procedures and practices. The Register is a highly professional document which has been produced in accordance with Australian Standards, and is reviewed by the AEC’s Audit Committee on an annual basis. ‘Safety’ is the first agenda item for at all major staff meetings – i.e. weekly senior management meetings, fortnightly staff meetings, consultative committee meetings and supervisors meetings. This helps to reinforce the importance of safety as a fundamental part of the AEC work culture and ensures safety issues are identified, investigated and acted upon.

o Issues Addressed and Controlled A number of issues were addressed and controlled as part of ongoing risk reviews, and these included:

• Reassessment and update of Priority, Consequence and Likelihood Ratings for all AEC risks, including ensuring all necessary actions had been implemented to mitigate identified risks where possible.

• Implementation of the AEC’s rolling Internal Audit Program as overseen by the AEC’s Audit Committee.

• Testing of electrical, rigging and emergency equipment. • Emergency Evacuation Training.

o Corporate OHS&W Committee and OHS&W Representatives The Consultative Committee is a group of both employer and elected employee representatives that provide a forum for participation by employees to review work related matters and in particular developing and implementing measures designed to ensure the health and safety of all AEC staff. The Committee meets regularly and is responsible for making recommendations on policy and for taking action with respect to occupational health and safety matters and promotion of a safe and healthy workplace together with other workplace issues. With the 3 year term expiring of the Committee in 2010-2011, a new Committee was formed by way of ballot of the Casual Staff Pool.


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o Statistical Reporting OHS Notices and Corrective Action

Number of notifiable occurrences pursuant to OHS&W Regulations Division 6.6 Nil Number of notifiable injuries pursuant to OHS&W Regulations Division 6.6 Nil Number of notices served pursuant to OHS&W Act s35, s39 and s40 (default, improvement and prohibition notices

Nil

Agency Gross Workers Compensation Expenditure for 2010-11 Compared with 2009-10

EXPENDITURE 2010-11 ($)

2009-10 ($)

Variation ($) + (-)

% Change + (-)

Income Maintenance 1 843 1 799 44 2.4%

Lump Sum Settlements Redemptions – Sect. 42

0 0 0 -

Lump Sum Settlements Permanent Disability – Sect. 42

0 0 0 -

Medical/Hospital Costs combined

4 487 4 388 99 2.3%

Other 0 0 0 -

Total Claims Expenditure 6 330 6 187 143 2.3%

Meeting Safety Performance Targets

Base: 2009-10

Performance: 12 months to end of June 2011

Final Target

Number or %

Actual Notional Quarterly Target

Variation Number or %

1. Work place Fatalities 0 0 0 0 0

2. New Workplace Injury Claims

2 2 0 (2) 0

3. New Workplace Injury Claims Frequency Rate

12.6% 10.5% 0 (10.5%) 0

4. Lost Time Injury Frequency Rate

6.3% 10.5% 0 (10.5%) 0

5. New Psychological Injury Claims

0 0 0 0 0

6. Rehabilitation and Return to Work:

6a. Early Assessment within 2 Days

100% 100% 100% 0 80% or more

6b. Early Intervention within 5 Days

100% 100% 100% 0 80% or more

6c. RTW within 5 business days 100% 50% 80% (30%) 75% or more

7. Claim Determination:

7a. Claims determined in 10 business days

2 2 100% 0 75% or more

7b. Claims still to be determined after 3 months

0 0 100% 0 3% or less

8. Income Maintenance Payments for Recent Injuries:

2009-10 Injuries (at 24 months development)

0 0 0 0 0

2010-11 Injuries (at 12 months development)

$1 799 $1 843 0 ($1 843) 0


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o Meeting Targets Ongoing strategies, including kitchen safety manual, job safety analysis and risk management, were carried out as an ongoing measure to reduce the number and cost of new claims, and ensure targets are met. Early intervention and reiterating to employees the importance of notifying management of incidents and near misses was a major factor in reducing the number and cost of new claims.

Fraud There were no instances of fraud recorded for the 2010-11 financial year. The AEC financial management is in accordance with applicable Australian Accounting Standards, the Treasurer’s Instructions and Accounting Policy Statements. To minimise the potential for fraud, a risk register, Financial Management Compliance Program, internal audits, and accounting procedures and policies are maintained and reviewed in conjunction with the external auditors and AEC Audit Committee.

Consultants Payments to Consultants 2011 2010

The number of dollar amount of consultancies paid/payable (included in supplies and services expense) that fell within the following bands:

No $’000 No $’000

Below $10 000 6 10 6 11

Between $10 000 and $50 000 1 15 0 0

Above $50 000 0 0 0 0

Total paid/payable to the consultants engaged 7 25 6 11

Consultants engaged in the range of between $10 000 and $50 000 included Aurecon Australia Pty Ltd who provided a property scoping assessment.


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Other Matters

Overseas Travel No AEC staff travelled overseas during the year.

Contractual Arrangements The AEC has no contractual arrangements which exceed $4M and which extend beyond a single year.

Account Payment Performance

Particulars Number of accounts paid

Percentage of accounts paid (by number)

Value in $A of accounts paid

Percentage of accounts paid (by value)

Paid by the due date* 6 295 92.9% 16 310 894 97.1%

Paid within 30 days or less from due date

370 5.5% 327 229 1.9%

Paid more than 30 days from due date

109 1.6% 165 467 1%

* Note: The due date is defined as per section 11.2 of Treasurer’s Instruction 11 Payment of Accounts. Unless

there is a discount or a written agreement between the public authority and the creditor, payment should be within thirty days of the date of the invoice or claim.


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Disability Action Plans The AEC engaged Disabled Consultancy Services Ltd to provide design advice pertaining to the Facility Enhancement Project to ensure compliance for new building works with Australian Standard 1428 and the Federal Disability Discrimination Act 1992. The AEC has accessibility for people with disabilities to both the car park and venue. Information for patrons with disabilities is available on the AEC website, ticketing agencies and AEC reception, and both agency and ticketing staff are briefed on venue issues relating to patrons with disabilities. Services provided to the disabled include:

• Special Needs Ticketing - The AEC has a dedicated Ticketek special needs ticketing line for patrons with special needs on 1300 665 915. This service was established at the AEC’s request so that special needs patrons and companions can receive specialised, personal attention. To assist the hearing impaired, the AEC’s Ticket Office has an audio induction loop that transmits directly to the hearing aid so that the user needs no special equipment or connection.

• Companion Card - The AEC is a voluntary affiliate of the Companion Card program. Companion Card is a card issued to people with a permanent disability who require attendant care support which allows a companion to enter free of charge to participating venues. The Companion Card allows for the holder to pay for one ticket and a second ticket is issued to the companion at no charge. Companion Card bookings are available through Ticketek’s special needs ticketing line on 1300 665 975.

• Transport & Arrival Options - The AEC has high quality accessible entrances from train, tram and bus stops in close proximity to Port Road. The pedestrian-activated wide crossing across Port Road located at the AEC’s front entrance was upgraded as part of the Facility Enhancement Project and Tram Extension Project to provide a convenient, compliant and safe access path across Port Road from the Bowden train station and Port Road tram shelter, bus stops, and taxi ranks.

• Mobility Restricted Car Parking - The AEC has substantial mobility restricted parking around the venue. The AEC provides a service for all events whereby mobility restricted car parks can be pre-booked by calling the AEC Reception during business hours on 8208 2222 (standard car parking fees apply). Those patrons that pre-book are guaranteed a car park.

• Hearing Augmentation - The AEC utilises an FM system, recommended by ‘Deaf Can Do’ (formerly Deaf SA), in the Arena, Theatre and Star Room.

• Sight Impaired - Patrons with sight impairment who do not wish to sit in general seating areas may purchase seats in mobility restricted areas.

• Service Animals - Trained guide, hearing and assistance dogs are welcomed at the AEC. A water bowl is available at the Cloak Room to provide comfort for service animals.

Consultation and/or the handling of complaints is co-ordinated through the Chief Executive's office. Policies and procedures are reviewed annually and any changes/additions advised to the appropriate staff or agencies. The AEC continues to monitor changing requirements of the Disability Discrimination Act and the Equal Opportunity Act.


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Energy Efficiency Action Plan Reports

KWH -MJ's- Ltrs Energy Use (GJ) GHG Emissions

Base Year (2000-01)

Electricity 2 128 000 7 660.8 2 523.8

Natural Gas 1 993 889 1 993.9 103.1

LPG 3 302 84.9 5.7

Total: 9 739.6 2 632.6

Previous Year (2009-10)

Electricity 2 593 622 9 337.0 1 765.6

Natural Gas 1 711 310 1 711.3 436.4

LPG 6 893 175.1 44.6

Total: 11 223.4 2 246.7

Year Being Reported (2010-11)

Electricity 3 239 358 11 661.7 2 100.3

Natural Gas 1 958 302 1 958.3 499.4

LPG 7 698 195.5 49.9

Total: 13 815.5 2 649.6

Variations in the international touring market makes annual energy comparisons difficult. Management has taken a number of initiatives to improve the efficiency in power consumption, including the fitting of smart bulbs throughout the Centre and the establishment of an internal awareness program to drive further improvements.

Asbestos Management in Government Buildings There were no incidents of asbestos being found on the AEC Site in 2010-11.

Sustainability Reporting The following table shows the AEC’s water usage and expenditure.

2010-11

2009-10

Kilolitres - Usage

Expense $

Kilolitres - Usage

Expense $

26 Orsmond Tce 459 1 999 513 1 331

70 Port Rd 7 256 180 591 9 568 145 557

Total 7 715 182 590 10 081 146 888

Water consumption comparisons from year to year are difficult due to the significant variations in attendance and events held at the AEC. Throughout 2010-11, the Adelaide Entertainment Centre has heavily promoted the use of tram services as a convenient and environmentally friendly means of getting to and from the AEC for events. The continuation of the AEC Park & Ride facility has also encouraged increased use of public transport.


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The AEC has the following environmentally friendly features:

• Energy use minimisation – Items such as energy efficient lighting, air-conditioning systems incorporating natural ventilation modes and heat recovery, solar hot water and automated controls for lighting and air-conditioning were utilised as energy saving initiatives.

• Water reuse and minimisation – The AEC has a 55,000 litre underground water tank to capture rainwater which is reused to service toilet facilities.

• Waste Management Plan – The AEC has an ongoing waste management plan to minimise environmental impacts through the use of renewable and recyclable resources.

• Recyclable construction materials – are used wherever feasible. Urban Design Charter The Urban Design Charter records the recognition by the SA Government of the benefits of good urban design. It commits all government agencies to achieve good urban design when managing public places or creating the public buildings and infrastructure that contribute to the qualities of our streets, squares, parks and waterfronts. The Charter’s aims, in part, seek to:

• focus on partnership, integration, participation and equity • promote the achievement of quality • promote collaboration and co-operative alliances with local government and the private

sector

• motivate the creation of attitudes, priorities and responses conducive to quality achievements

The AEC is aware that it occupies a large footprint in a gateway site for the City of Charles Sturt and the City of Adelaide. It is also aware of its responsibilities to manage the site in close alignment to the principles of its Charter and to the interest of the greater community. Any development on the AEC Site is undertaken in accordance with Urban Design Charter principles.

Regional Impact Assessment Statements No Regional Impact Assessment Statements have been prepared this year.


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Freedom of Information

FREEDOM OF INFORMATION ACT 1991 INFORMATION STATEMENT

SECTION 9(2)(b) – STRUCTURE AND FUNCTIONS The Adelaide Entertainments Corporation, known as the Adelaide Entertainment Centre (AEC), was established on 4 February 1999 as a subsidiary of the Minister for Tourism under the Public Corporations (Adelaide Entertainments Corporation) Regulations 1999. The functions of the AEC are to:

• manage and operate the AEC site; • manage, promote and sponsor events at the AEC site or elsewhere; • foster and assist the commercial development of the AEC site in order to complement and

enhance the commercial potential of the AEC; and

• carry out any other functions conferred on the subsidiary by the Minister. The AEC is governed by a Board of Directors and operates under a Charter approved pursuant to the provisions of the Public Corporations Act 1993 (Adelaide Entertainments Corporation Regulations 1999). The AEC had zero FOI requests in 2010-11. SECTION 9(2)(b) – SUMMARY FUNCTION The mission of the Adelaide Entertainment Centre is to provide leading entertainment through professional event and function management, quality venues and customer service for social and commercial benefits to the public of South Australia. SECTION 9(2)(c) - PUBLIC PARTICIPATION IN AGENCY POLICY DEVELOPMENT The success of the AEC is dependent on input from the event and functions industry and stakeholders. The AEC welcomes feedback and comments on agency policy development from patrons, government, community organisations and the entertainment industry through market research, forum groups, website feedback forms and informal and formal group consultations. SECTION 9(2)(d) – DOCUMENTS HELD

• AEC Annual Report • AEC Strategic Plan • Policies and Procedures • Other miscellaneous documents • Various AEC promotional brochures


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SECTION 9(2)(e) & (f) – ACCESS TO DOCUMENTS Requests under the FOI Act for access to documents in the possession of the AEC should be accompanied by a $29.50 application fee (to be paid by cheque or money order). Should more than two hours be required to accommodate the FOI request, additional charges may apply, as listed in the South Government’s current Freedom of Information (Fees and Charges) Regulations at the time of the request. Applications should be directed in writing to:

Chief Executive Officer Adelaide Entertainment Centre P.O. Box 113 HINDMARSH SA 5007

Access to documents listed under section 9(2)(d) can be arranged between 9am and 4.30pm, Monday to Friday, at the Adelaide Entertainment Centre premises, Port Road, Hindmarsh, SA 5007, by contacting the Chief Executive Officer, telephone (08) 8208 2222. Copies of the Information Statement and Information Summary are available, free of charge, by contacting the Chief Executive Officer. Other publications are available on request but may incur a fee.

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Financial Statements – Adelaide Entertainments Corporation STATEMENT OF COMPREHENSIVE INCOME

For the year ended 30 June 2011

Note No. 2011 2010

$'000 $'000

Income from Trading Activities

Revenues from fees and charges 6 534 415

Revenues from the provision of services

7 8 804 7 106

Revenues from sales

8 6 708 3 754

Interest revenues

9 860 1 393

Revenues from Government

10 - 50

Net gain from the disposal of assets

11 34 -

Other revenues

12 1 856 1 254

Total income 18 796 13 972

Expenses from Trading Activities

Employee benefits expenses

13 6 741 4 803

Raw materials and consumables used

22 1 959 1 190

Sales and marketing

1 586 1 499

Ticketing

292 560

Supplies and services

16 1 191 805

Depreciation and amortisation expense

17 1 210 708

Payments to Government

10 - 700

Net loss from the disposal of assets

11 - 183

Other expenses

18 402 404

Total expenses

13 381 10 852

Profit from Trading Activities

5 415 3 120

Income from Property Management Activities

Other Revenues 12 465 312

Total income

465 312

Expenses from Property Management Activities

Employee benefits expenses

13 290 328

Supplies and Services

16 1 213 1 154

Depreciation and amortisation expense

17 3 785 2 272

Other expenses 18 158 330

Total expenses

5 446 4 084

Loss from Property Management Activities

(4 981) (3 772)

Net Profit / (Loss)

434 (652)

Other Comprehensive Income

Change in Asset Revaluation Surplus

- 21 741

Total Comprehensive Result

434 21 089

The net profit / (loss) and comprehensive result are attributable to the SA Government as owner.

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


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STATEMENT OF FINANCIAL POSITION

As at 30 June 2011

Note 2011 2010

No. $’000 $’000

Current assets

Cash and cash equivalents

20, 32 14 904 12 218

Receivables

21 1 278 1 801

Inventories

22 232 91

Total current assets

16 414 14 110

Non-current assets

Property, plant and equipment

23 133 259 137 386

Total non-current assets

133 259 137 386

Total assets

149 673 151 496

Current liabilities

Payables

24 1 862 4 451

Short-term employee benefits

25 492 408

Other liabilities 27 952 831

Total current liabilities

3 306 5 690

Non-current liabilities

Payables

24 50 25

Long-term employee benefits

25 314 155

Other liabilities

27 5 360 5 417

Total non-current liabilities

5 724 5 597

Total liabilities

9 030 11 287

Net assets

140 643 140 209

Equity

Contributed capital

28 55 536 55 536

Asset revaluation surplus

28 48 551 48 551

Accumulated surplus

28 36 556 36 122

Total equity

140 643 140 209

The total equity is attributable to the SA Government as owner.

Commitments

29

Contingent assets and liabilities

31



26

STATEMENT OF CHANGES IN EQUITY


Note Contributed

Capital

Asset Revaluation

Surplus

Accumulated Surplus

Total

No. $’000 $’000 $’000 $’000

Balance at 30 June 2009 55 536 26 810 36 774 119 120

Net Profit / (Loss) for 2009-10 - - ( 652) (652)

Revaluation of Land & Buildings - 21 741 - 21 741

Total Comprehensive Result for 2009-10 - 21 741 ( 652) 21 089

Balance at 30 June 2010 55 536 48 551 36 122 140 209

Net profit for 2010-11 - - 434 434

Total Comprehensive Result for 2010-11 - - 434 434

Balance at 30 June 2011 28 55 536 48 551 36 556 140 643

All changes in equity are attributable to the SA Government as owner.



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STATEMENT OF CASH FLOWS


Note 2011 2010

No. $’000 $’000

Cash flows from operating activities

Cash inflows

Receipts from the sale of goods and services

20 637 14 321

Interest received

866 1 466

Receipts from SA Government

- 50

GST received from ATO

159 4 374

Cash generated from operations

21 662 20 211

Cash outflows

Employee benefit payments

6 788 5 225

Supplies and services

7 666 10 846

Payments to SA Government

- 700

GST remitted to ATO

1 106 293

Cash used in operations

15 560 17 064

Net cash provided by operating activities 32 6 102 3 147

Cash flows from investing activities

Cash inflows

Proceeds from the sale of property, plant and equipment

56 30

Cash generated from investing activities

56 30

Cash outflows

Purchase of property, plant and equipment

3 472 47 138

Cash used in investing activities

3 472 47 138

Net cash (used in) / provided by investing activities

(3 416) (47 108)

Net (decrease) / increase in cash and cash equivalents

2 686 (43 961)

Cash and cash equivalents at the beginning of the financial year

12 218 56 179

Cash and cash equivalents at the end of the financial year 32 14 904 12 218



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Note 1 Objectives of the Adelaide Entertainments Corporation The Adelaide Entertainments Corporation (the Corporation), trading as the Adelaide Entertainment Centre, was established on 4 February 1999 as a subsidiary of the Minister for Tourism by Regulations under the Public Corporations Act 1993.

The functions of the Corporation are to:

1 manage and operate the Adelaide Entertainment Centre site; 2 manage, promote and sponsor events at the Adelaide Entertainment Centre site or elsewhere;

3 foster and assist the commercial development of the Adelaide Entertainment Centre site in order to complement and enhance the commercial potential of the Adelaide Entertainment Centre; and

4 carry out any other functions conferred on the subsidiary by the Minister.

The Corporation is governed by a Board of Directors and operates under a charter approved pursuant to the provisions of the Public Corporations Act 1993. The Act and the charter require the preparation of general purpose financial statements which reflect the performance and position of the Corporation for each financial year ended 30 June.

Note 2 Summary of significant accounting policies

a) Statement of compliance

The financial statements are general purpose financial statements. The accounts have been prepared in accordance with relevant Australian accounting standards and Treasurer’s instructions and Accounting Policy Statements promulgated under the provision of the Public Finance and Audit Act 1987. Australian accounting standards and interpretations that have recently been issued or amended but are not yet effective have not been adopted by the Corporation for the reporting period ending 30 June 2011. b) Basis of preparation

The preparation of the financial statements require:

the use of certain accounting estimates and requires management to exercise its judgement in the process of applying the Adelaide Entertainments Corporation's accounting policies. The areas involving a higher degree of judgement or where assumptions and estimates are significant to the financial statements are outlined in the applicable notes;

accounting policies are selected and applied in a manner which ensures that the resulting

financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events are reported; and

compliance with Accounting Policy Statements issued pursuant to section 41 of the Public Finance

and Audit Act 1987. In the interest of public accountability and transparency the accounting policy statements require the following note disclosures, that have been included in these financial statements:

a) revenues, expenses, financial assets and liabilities where the counterparty/transaction

is with an entity within the SA Government as at reporting date, classified according to their nature.

b) expenses incurred as a result of engaging consultants (as reported in the Statement

of Comprehensive Income); c) employees whose normal remuneration is equal to or greater than the base

executive remuneration level (within $10 000 bandwidths) and the aggregate of the remuneration paid or payable or otherwise made available, directly or indirectly by the entity to those employees.

d) Board member and remuneration information, where a Board member is entitled to

receive income from membership other than a direct out-of-pocket reimbursement.


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The Adelaide Entertainments Corporation's Statement of Comprehensive Income, Statement of Financial Position and Statement of Changes in Equity have been prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets that were valued in accordance with the valuation policy applicable. The Statement of Cash Flows has been prepared on a cash basis.

The financial statements have been prepared based on a twelve month period and presented in Australian currency. The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2011 and the comparative information presented for the year ended 30 June 2010. c) Reporting Entity

The financial statements cover the Adelaide Entertainments Corporation (the Corporation), trading as the Adelaide Entertainment Centre as an individual reporting entity. Adelaide Entertainments Corporation is a Statutory Authority of the State of South Australia, established pursuant to Public Corporations Act 1993. d) Comparative information

The presentation and classification of items in the financial statements are consistent with prior periods except where a specific accounting policy statement or Australian accounting standard have required a change. Where presentation or classification of items in the financial statements have been amended, comparative amounts have been reclassified unless reclassification is impracticable. The restated comparative amounts do not replace the original financial statements for the preceding period.

e) Rounding

All amounts in the financial statements and accompanying notes have been rounded to the nearest thousand dollars ($’000).

f) Taxation

The Corporation is not subject to income tax.

The Corporation is liable for payroll tax, fringe benefits tax, goods and services tax (GST), emergency services levy, land tax equivalents and local government rate equivalents.

Income, expenses and assets are recognised net of the amount of GST except:

when the GST incurred on a purchase of goods or services is not recoverable from the

Australian Taxation Office, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item applicable; and

receivables and payables, which are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the Australian Taxation Office is included as part of receivables or payables in the Statement of Financial Position. Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the Australian Taxation Office is classified as part of operating cash flows. Unrecognised commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to the Australian Taxation Office. If GST is not payable to, or recoverable from the Australian Taxation Office, the commitments and contingencies are disclosed on a gross basis. g) Events after balance date

Where an event occurs after 30 June but provides information about conditions that existed at 30 June, adjustments are made to amounts recognised in the financial statements.


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Note disclosure is made about events between 30 June and the date the financial statements are authorised for issue where the events relate to a condition which arose after 30 June and which may have a material impact on the results of subsequent years. h) Income and expenses

Income and expenses are recognised to the extent that it is probable that the flow of economic benefits to or from the Corporation will occur and can be reliably measured.

Income and expenses have been classified according to their nature and have not been offset unless required or permitted by a specific accounting standard, or where offsetting reflects the substance of the transaction or other event.

The notes accompanying the financial statements disclose income and expenses where the counterparty/transaction is with an entity within the SA Government as at the reporting date, classified according to their nature.

Income

The following are specific recognition criteria:

Revenues from fees and charges and from the provision of services

Revenues from fees and charges are derived from the provision of goods and services to the public and other SA Government agencies. This revenue is recognised upon delivery of the service to the clients or by reference to the stage of completion.

Revenues from sales

Revenues from sales are recognised when the significant risks and rewards of ownership transfer to the purchaser.

Interest income

Interest revenue includes interest received on bank term deposits, interest from investments, and other interest received. Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.

Revenues from the SA Government

Appropriations for program funding are recognised as revenues when the Corporation obtains control over the funding. Control over appropriations is normally obtained upon receipt.

Where money has been appropriated in the form of a loan, the Corporation has recorded a loan payable. Where money has been appropriated in the form of an equity contribution, the Treasurer has acquired a financial interest in the net assets of the Corporation and the appropriation is recorded as contributed equity.

Other contributions

All contributions from non-government entities are recognised as income when the Corporation obtains control of the contribution or the right to receive the contribution and the income recognition criteria are met.

Resources received/provided free of charge

Resources received/provided free of charge are recorded as revenue and expenditure in the Statement of Comprehensive Income at their fair value.

Disposal of non-current assets

Income from the disposal of non-current assets is recognised when control of the asset has passed to the buyer and is determined by comparing proceeds with carrying amount. When revalued assets are sold, the revaluation increments are transferred to accumulated surplus.


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Expenses

The following are specific recognition criteria:

Employee benefits

Employee benefits expenses includes all costs related to employment including wages and salaries and leave entitlements. These are recognised when incurred.

Superannuation

The amount charged to the Statement of Comprehensive Income represents the contributions made by the Corporation to the superannuation plan in respect of current services of current Corporation staff. The Corporation is not liable for benefits payable by the schemes to which it contributes.

i) Current and non-current classification

Assets and liabilities are characterised as either current or non-current in nature. The Corporation has a clearly identifiable operating cycle of twelve months. Assets and liabilities that are sold, consumed or realised as part of the normal operating cycle even when they are not expected to be realised within twelve months after the reporting date have been classified as current assets or current liabilities. All other assets and liabilities are classified as non-current.

Where asset and liability line items combine amounts expected to be realised within twelve months and more than twelve months, the Corporation has separately disclosed the amounts expected to be recovered or settled after more than twelve months.

j) Cash and cash equivalents

Cash and cash equivalents in the Statement of Financial Position includes cash at bank and on hand and in other short-term, highly liquid investments with maturities of three months or less that are readily converted to cash and which are subject to insignificant risk of changes in value. Cash and cash equivalents recorded in the Statement of Cash Flows are consistent with the Statement of Financial Position.

Cash is measured at nominal value.

k) Receivables

Receivables include amounts receivable from trade, prepayments and other accruals.

Trade receivables arise in the normal course of selling goods and services to other agencies and to the public. Trade receivables are generally receivable within 30 days after the issue of an invoice or the goods/services have been provided under a contractual arrangement.

Collectability of trade receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written off when identified. An allowance for doubtful debts is raised when there is objective evidence that the Corporation will not be able to collect the debt.

l) Inventories

Inventories include goods and other property held for sale in the ordinary course of business. It excludes depreciating assets.

Inventories are measured at the lower of cost or their net realisable value. Cost is allocated in accordance with the average cost method. Net realisable value is determined using the estimated sales proceeds less costs incurred in marketing, selling and distribution to customers.

The amount of any inventory write-down to net realisable value or inventory losses are recognised as an expense in the period the write-down or loss occurred. Any write-down reversals are recognised as an expense reduction.

Inventories include food and beverage stock held for resale.


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m) Non-current asset acquisition and recognition

Assets are initially recorded at cost or at the value of any liabilities assumed, plus any incidental cost involved with the acquisition. Where assets are acquired at no value, or minimal value, they are recorded at their fair value in the Statement of Financial Position. However, if the assets are acquired at no or nominal value as part of a restructuring of administrative arrangements then the assets are recorded at the value recorded by the transferor prior to transfer.

Where the payment for an asset is deferred, Adelaide Entertainments Corporation measures the obligation at the present value of the future outflow, discounted using the interest rate of a similar length borrowing.

n) Revaluation of non-current assets

All non-current tangible assets are valued at written down current cost (a proxy for fair value); and revaluation of non-current assets or group of assets is only performed when its fair value at the time of acquisition is greater than $1 million and estimated useful life is greater than 3 years.

Every five years the Corporation revalues its land, buildings and building improvements. However, if at any time management considers that the carrying amount of an asset materially differs from its fair value, then the asset will be revalued regardless of when the last valuation took place. Non-current tangible assets that are acquired between revaluations are held at cost until the next valuation, where they are revalued to fair value.

Adelaide Entertainments Corporation has taken the exemption available under Accounting Policy Framework III Asset Accounting Framework paragraph APS 3.8 to take asset revaluation adjustments to the asset revaluation surplus on a class basis rather than an individual asset basis.

Any revaluation increment is credited to the asset revaluation surplus, except to the extent that it reverses a revaluation decrement of the same asset class previously recognised in the Statement of Comprehensive Income, in which case the increase is recognised in the Statement of Comprehensive Income.

Any revaluation decrease is recognised in the Statement of Comprehensive Income, except to the extent that it offsets a previous revaluation increase for the same asset class, in which case the decrease is debited directly to the asset revaluation surplus to the extent of the credit balance existing in asset revaluation surplus for that asset class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amounts of the assets and the net amounts are restated to the revalued amounts of the asset. Previously this was accounted for using the gross method, where the gross carrying amounts of the assets and accumulated depreciation were disclosed.

Upon disposal or derecognition, any revaluation surplus relating to that asset is transferred to Accumulated surplus.

o) Impairment

All non-current assets are tested for indication of impairment at each reporting date. Where there is an indication of impairment, the recoverable amount is estimated. An amount by which the asset’s carrying amount exceeds the recoverable amount is recorded as an impairment loss.

For revalued assets an impairment loss is offset against the asset revaluation surplus.

p) Depreciation and amortisation of non-current assets

All non-current assets, having limited useful lives, are systematically depreciated/amortised over their useful lives in a manner that reflects the consumption of their service potential. Amortisation is used in relation to intangible assets such as software, while depreciation is applied to tangible assets such as property, plant and equipment.

Assets’ residual values, useful lives and depreciation methods are reviewed and adjusted if appropriate, on an annual basis.

Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for prospectively by changing the time period or method, as appropriate, which is a change in accounting estimate.


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Depreciation/amortisation is calculated over the estimated useful life of the following classes of assets as follows:

Class of Asset Depreciation Method

Useful life (Years)

Buildings & Improvements Straight Line & Diminishing Value 5-140

Plant and Equipment Straight Line 2-20

Furniture and Fittings Straight Line 3-20

q) Payables

Payables include creditors, accrued expenses and employment on-costs.

Creditors represent the amounts owing for goods and services received prior to the end of the reporting

period that are unpaid at the end of the reporting period. Creditors include all unpaid invoices received relating to the normal operations of Adelaide Entertainments Corporation. Accrued expenses represent goods and services provided by other parties during the period that are unpaid at the end of the reporting period and where an invoice has not been received. All payables are measured at their nominal amount and are normally settled within 30 days from the date of the invoice or date the invoice is first received. Employment on-costs include superannuation contributions, WorkCover SA levy and payroll tax with respect to outstanding liabilities for salaries and wages, long service leave and annual leave. The Corporation makes contributions to several externally managed superannuation schemes. These contributions are treated as an expense when they occur. There is no liability for payments to beneficiaries as they have been assumed by the respective superannuation schemes. The only liability outstanding at balance date relates to any contributions due but not yet paid. r) Employee benefits

These benefits accrue for employees as a result of services provided up to the reporting date that remain unpaid. Long-term employee benefits are measured at present value and short-term employee benefits are measured at nominal amounts. Wages, salaries, annual leave and time off in lieu Liability for salary and wages, annual leave and time off in lieu are measured as the amount unpaid at the reporting date at remuneration rates current at reporting date. The annual leave liability is expected to be payable within twelve months and is measured at the undiscounted amount expected to be paid. Sick leave No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees is estimated to be less than the annual entitlement of sick leave. Long service leave The liability for long service leave is recognised after an employee has completed 5 years of service in accordance with Accounting Policy Framework IV Financial Asset and Liability Framework. An actuarial assessment of Long Service Leave undertaken by the Department of Treasury and Finance based on a significant sample of employees throughout the South Australian public sector determined that the liability measured using the short hand method was not materially different from the liability measured using the present value of expected future payments. In the 2011 financial year, the LSL benchmark contained in the Accounting Policy Framework IV Financial Asset and Liability Framework reduced to 5 years. The Corporation has adopted 5 years as the benchmark for the measurement of the long service leave liability as of 2006, as it reflects the Corporation’s past experience of employee retention and the taking of leave.

The unconditional portion of the long service leave provision is classified as current as the Corporation does not have an unconditional right to defer settlement of the liability for at least 12 months after reporting date. The unconditional portion of long service leave relates to an unconditional legal entitlement to payment arising after ten years of service for permanent staff and seven years of service for casual staff.


34

s) Other Liabilities Income received in advance represents amounts invoiced under Corporate Suite Licensing and Advertising Agreements which relate to future periods. The payments received under the agreements are recognised as income over the term of the agreement as the provision of services are supplied.

Unearned lease revenue represents payment received for a section of land leased on a 99 year lease agreement during 2007. The payments received for the lease are being recognised as income over the life of the lease.

t) Administered Items

The Corporation includes a schedule of administered items as a note to the accounts as it is considered that administered transactions and balances are insignificant in relation to the Corporation’s overall financial performance and position, in accordance with Accounting Policy Framework II General Purpose Financial Statements Framework paragraph APS 3.11.2.

The Corporation receives gross box office receipts from its ticketing agency, and holds those receipts in a separate Event Funds bank account. In any instance where a show does not proceed, those monies are returned to the ticketing agency and refunded to patrons. Alternatively, the monies are paid to promoters, the Corporation and other service providers.

u) Leases

The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement. The Corporation has assessed whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset. Adelaide Entertainments Corporation has entered into operating leases.

v) Insurance

Adelaide Entertainments Corporation has arranged, through SA Government Financing Authority, SAICORP Division, to insure all major risk of the Corporation. The excess payable under this arrangement is $5 000 per claim made.

w) Workers Compensation

Contributions are made by the Corporation to the WorkCover Corporation to provide insurance coverage in relation to workers compensation. These contributions are treated as an expense when they occur. There is no liability for payments to claimants as they have been assumed by the WorkCover Corporation.

Note 3 Financial risk management

The Corporation is exposed to a variety of financial risks, market risk (foreign exchange and price), credit risk and liquidity risk.

Risk management is carried out by the corporate services section and risk management policies and practices are in accordance with Australian Risk Management Standards and internal written policies approved by the Board.

The Corporation has non-interest bearing assets (cash on hand and receivables) and liabilities (payables) and interest bearing assets (cash at bank and held to maturity investments).

The Corporation’s exposure to cash flow interest rate risk is minimal.

The Corporation has no exposure to foreign exchange risk in relation to its financial assets or liabilities.

The Corporation has no significant concentration of credit risk. The Corporation has policies and procedures in place to ensure that transactions occur with customers with appropriate credit history.


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Note 4 Changes in accounting policies The Corporation has assessed the impact of new and amended standards and interpretations which are not yet effective and considers there will be no impact on the accounting policies or the financial statements of the Corporation.

In accordance with amendments to APS 4.8 within Accounting Policy Framework II General Purpose Financial Statements Framework, effective 1 July 2010 the Corporation has disclosed all employees whose normal remuneration is equal to or greater than the base executive level remuneration. Previously APS 4.8 within APF II required the Corporation to disclose all employees whose normal remuneration was equal to or greater than $100,000. This change is reflected in Note 13.

Note 5 Activities of the Corporation The principal activity of the Corporation is to manage and operate the Adelaide Entertainment Centre.

Note 6 Revenues from fees and charges

2011 2010

$’000 $’000

Fees and charges received/receivable from entities external to the SA Government

Merchandise Revenues

534 415

Total fees and charges - Non SA Government entities 534 415

Note 7 Revenues from the provision of services

2011 2010

$’000 $’000

Services provided to entities external to the SA Government

Corporate Revenue

2 099 1 887

Equipment Hire

628 251

Recoveries

1 991 1 700

Venue Hire

3 980 3 101

Total revenues from the provision of services - Non SA Government entities 8 698 6 939

Services provided to entities within SA Government

Corporate Revenue 63 65

Equipment Hire 2 4

Recoveries

6 34

Venue Hire 35 64

Total revenues from the provision of services - SA Government entities 106 167

Total revenues from the provision of services 8 804 7 106


36

Note 8 Revenues from sales

2011 2010

$’000 $’000

Sales from entities external to the SA Government

Beverage Sales

2 889 1 462

Food Sales

3 708 2 142

Total revenues from sales - Non SA Government entities 6 597 3 604

Sales from entities within SA Government

Beverage Sales

22 24

Food Sales 89 126

Total revenues from sales - SA Government entities 111 150

Total revenue from sales 6 708 3 754

Note 9 Interest revenues

2011 2010

$’000 $’000

Interest from entities external to the SA Government 106 64

Interest from entities within the SA Government 754 1 329

Total interest revenues 860 1 393

Note 10 Revenues from / Payments to SA Government

2011 2010

Revenues from SA Government

$’000 $’000

Other Contributions - 50

Total Revenues from SA Government - 50

Payments to SA Government

Payments to SA Government - 700

Total Payments to SA Government - 700

During the 2009-10 financial year the AEC refunded $700,000 to the State Government due to project cost

savings relating to the $52 million Facility Enhancement Project. Note 11 Net (loss) / gain from disposal of assets

2011 2010

$’000 $’000

Plant and equipment

Proceeds from disposal

56 30

Less net book value of assets disposed (22) (213)

Net (loss) / gain from disposal of plant and equipment 34 (183)


37

Note 12 Other revenues

2011 2010

Trading Activities $’000 $’000

Other Revenue from entities external to the SA Government

Car Park

249 169

Ticketing Charges

751 680

Other Revenue

856 362

Total Other Revenues from Non-SA Government Entities 1 856 1 211

Other Revenue from entities within SA Government

Other Revenue

- 43

Total Other Revenues - SA Government entities - 43

Total Other Revenue from Trading Activities 1 856 1 254

Property management activities

Property Lease Revenue

185 163

Other Revenue 280 149

Total Other Revenues from Property Management Activities 465 312

Total Other Revenues 2 321 1 566

Note 13 Employee benefits expenses

2011 2010

Trading Activities

$’000 $’000

Salaries and wages

5 032 3 656

Long service leave

219 59

Annual leave

332 239

Employment on-costs - superannuation

495 343

Employment on-costs - other

401 295

Board fees

108 109

Other employee related expenses 154 102

Total employee benefits expenses from Trading Activities 6 741 4 803

Property Management Activities

Salaries and wages

272 314

Long Service Leave

5 4

Annual Leave

10 10

Other employee related expenses

3 -

Total employee benefits expenses from Property Management Activities 290 328

Total employee benefits expenses 7 031 5 131

During the year payments made to entities within SA Government include Employment on-costs of $401 000 ($295 000).


38

Remuneration of Employees 2011 2010

The number of employees whose remuneration received or receivable falls within the following bands:

$127 500 to $130 699*

- 1

$260 700 to $270 699

1 -

$290 700 to $300 699

- 1

Total number of employees 1 2

*This band has been included for the purposes of reporting comparative figures based on the executive base

level remuneration rate for 2009-10.

The table includes all employees who received remuneration equal to or greater than the base executive remuneration level during the year. Remuneration of employees reflects all costs of employment including salaries and wages, payments in lieu of leave, superannuation contributions, fringe benefits tax and any other salary sacrifice benefits. The total remuneration received by these employees for the year was $266 000 ($423 000).

Accounting Policy Change

In accordance with the revised Accounting Policy Framework II General Purpose Financial Statements Framework, the Corporation has changed its accounting policy and now discloses all employees who receive remuneration equal to or greater than the base executive remuneration level rather than all employees who receive remuneration equal to or greater than $100 000. The impact of this change in accounting policy is the number of employees disclosed has reduced by 4 for 2011 and 4 for 2010.

Note 14 Key management personnel

(a) Board members

The following persons held the position of governing board member during the financial year:

R Foord (Chairperson) G Wallace

J Bell

G Pitt

A Herald

J Staugas

W Spurr

(b) Other key management personnel

The following persons also had authority and responsibility for planning, directing and controlling the activities of the Corporation, directly or indirectly during the financial year:

Mr Anthony Kirchner

Chief Executive

Mr Tommy Pavic

Chief Financial Officer (Until 14 January 2011)

Ms Janine Webb

Chief Financi

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