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Sydney Cricket & Sports Ground Trust

2015/16 ANNUAL REPORT1 March 2015 - 29 February 2016 Financial Year

1

CONTENTS2 LETTEROFSUBMISSION

3 MINISTER’SFOREWORD

4 CHAIRMAN’SREPORT

6 VISIONANDGOALS

8 KEYOUTCOMESANDPROGRESS

10 MANAGINGTHEEVENTS

16 MANAGINGTHEASSETS

20 HEALTHANDSAFETY

24 STRATEGYANDPROJECTS

26 COMMERCIAL

28 MEMBERSHIPANDMARKETING

34 MEDIAANDCOMMUNICATIONS

36 CORPORATESERVICES

46 HUMANRESOURCES

50 TRUSTEEANDMANAGEMENTPROFILES

62 TRUSTCHARTERANDCONSTITUTION

64 FINANCIALINDICATORS

66 AUDITEDFINANCIALSTATEMENTS(TRUST)

114 AUDITEDFINANCIALSTATEMENTS(TRUSTSTAFFAGENCY)

138 CONSUMERRESPONSE

Sydney Cricket & Sports Ground Trust

General Enquiries: (02) 9360 6601

Fax: (02) 9360 1319

Email: [email protected]

Trust Office: Administration Office, Level 2, Sheridan Building Moore Park Road, Moore Park NSW 2021

Postal Address: GPO Box 150, Sydney NSW 2001

sydneycricketground.com.au

3Sydney Cricket & Sports Ground Trust Annual Report 20162

MINISTER’S FOREWORDSport binds our nation, it links communities and provides common ground for friends old and new.

For some, sport is a way of life. For most of us it provides a break from the everyday. A chance to cheer your favourite player, their team, your place of birth or our nation.

Nowhere can you see that more clearly and more regularly than at the Sydney Cricket Ground and Allianz Stadium, NSW’s two favourite places to watch sport.

And nowhere could you see that passion, enjoyment and camaraderie more vividly than during the 2015 ICC Cricket World Cup.

The SCG hosted three pool games and a quarter-final and semi-final.

For each, the grandstands and the atmosphere of NSW’s favourite ground took on a completely different feel to what most regular patrons would have experienced.

The Sri Lankans made the Bill O’Reilly Stand their own when they arrived to cheer on their team, and their hero Kumar Sangakkara, against the Australians.

When the West Indies played South Africa, and AB De Villiers scored the most remarkable of One-Day International tons, you could have been mistaken for thinking that you were at Newlands or Sabina Park.

But when India arrived for the knockout semi-final against Australia at the SCG, the atmosphere was the perfect mix of the subcontinent and the great southern land – loud, ceaseless and intense beyond belief.

In front of more than 42,000 fans, Australia won their way through a tournament final they would also claim.

The 2015 ICC Cricket World Cup might have been over but the reporting year was just starting for the Sydney Cricket and Sports Ground Trust.

To follow would come genuine premiership tilts by anchor tenants the Sydney Roosters (NRL), Sydney Swans (AFL) and the NSW Waratahs (Super Rugby).

Sydney FC and the A-League continued their surge into the mainstream of Australian sport, attracting two near sellout crowds for the Sydney Derby against the Wanderers.

Few live events could match Ed Sheeran braving a lightning storm in front of nearly 50,000 fans, before being joined by Sir Elton John for a duet performance of Don’t Go Breaking My Heart.

The Trust’s financial year began with a sold-out international event, so it was fitting that it finished with another one.

The Sydney Sevens attracted more than 73,000 fans over two sold-out days of rugby at Allianz Stadium – an estimated 20,000 of them from overseas in a boon for the tourism industry.

It was a new event for Sydney, the result of a partnership between the Australian Rugby Union, NSW Government and the Trust. It was the perfect illustration of what happens when you firstly put sport where it should be played, but secondly where fans want to watch it.

I congratulate the staff of the Sydney Cricket and Sports Ground Trust on their achievements over the past 12 months and their continuing vision for the future of sport and entertainment in NSW.

THEHONSTUARTAYRESMPMinisterforSport,MinisterforTrade,TourismandEvents

The Hon Stuart Ayres MP


CHAIRMAN’S REPORTIt started with a Cricket World Cup bonanza and ended with a Sydney Sevens spectacular. This has been a massive year for Moore Park, with almost 1.5 million sporting fans attending events at the SCG and Allianz Stadium.

The Sydney Cricket and Sports Ground Trust has delivered on its mandate and again made a modest profit in a challenging climate, while continuing to serve the glory of sport. Our sports partners have excelled on and off the field, drawing strong crowds and performing to their potential across the board.

The NSW Waratahs, off the back of their maiden Super Rugby title, delivered another impressive season for their loyal fans. They played six home games at Allianz Stadium and went down in the semi-final to eventual champions, the Highlanders.

The Sydney Swans farewelled club great Adam Goodes at the season’s end and attracted bumper crowds throughout 2015. Their total attendance across eight games was 258,033 and that number will continue to flourish with the announcement that all home games will be played at the SCG for the next 30 years.

Early in the 2016 season, the Swans made the decision to relocate their three remaining matches from Homebush to the SCG and, while it presented some scheduling challenges, it proved a master stroke with the Swans on track for the highest average crowds on record.

For the third year in a row the Sydney Roosters won the NRL minor premiership, which included a remarkable run of 11 straight wins. Their crowd figures were up when compared to the previous year, with 35,110 fans turning out for the annual Anzac Day Cup at Allianz Stadium.

The St George-Illawarra Dragons and South Sydney Rabbitohs also hosted games at Moore Park. The two sides celebrated the 50-year anniversary of the 1965 grand final in their Heritage Round fixture at the SCG.

In cricket, the West Indies returned to the SCG in their all-whites for the first time since 2001. Unfortunately, rain limited cricket on the first four days before David Warner brought fans to their feet, recording the fastest Test century in the ground’s history with 122 off 103 balls. His ton coming from just 83 deliveries.

The Sydney Sixers had a groundbreaking season thanks to the 111,824 fans who came to all four of their home games at the SCG. Their following was boosted by the introduction of the women’s Sixers team, who added another dimension to the summer of cricket.

In January, the two Sixers sides combined to break a NSW domestic cricket attendance record at the annual Sydney Smash against the Thunder, the second time the record had been broken in 12 months. The BBL is proving to be a great boon to Cricket.

Then there was the excitement of India returning to the SCG. The crowd favourites played out a highly entertaining One-Day International against Australia and reached their total with just two balls to spare.

India were successful again a week later in the T20 International which featured Australia and India’s elite men’s and women’s sides. The double-header turned pink to raise further funds for the McGrath Foundation.

The Sydney Sevens, Allianz Stadium’s newest event, was the perfect way to finish off the summer. More than 73,000 fans attended the two-day festival of rugby as 16 international teams competed for the HSBC Sevens World Series crown.

In a thrilling final, New Zealand trumped Australia after the siren to win the inaugural tournament. It was fantastic to see both the Australian men’s and women’s teams in action and I’m sure they’ll do our nation proud at the Rio Olympics.

Tony Shepherd AO – Chairman

The Sydney Sevens was a fantastic example of just what a new major sporting event can do for our city. Hotels were full, restaurants and pubs did a roaring trade, and an estimated 20,000 rugby fans travelled from interstate and overseas to be part of the experience.

In football, Sydney FC reaffirmed their status as perennial heavyweights of the Hyundai A-League. After a successful season under coach Graham Arnold, they went down to Melbourne Victory 3-0 in the 2014-15 grand final.

Their unswerving support continued this season, and while results didn’t swing in their favour, consecutive crowds of more than 40,000 came to watch one of the best spectacles in Australian sport − the Sydney Derby at Allianz Stadium.

In the opening months of 2015, Allianz Stadium hosted three sold out sporting fixtures – a feat unmatched by any other venue in the state. Moore Park remains the number one place to watch sport in NSW and the unrivalled calendar of events continues to attract new fans and keep the old ones coming back.

During the reporting period we saw more than 47,000 fans watch British superstar Ed Sheeran perform and more than 83,000 supporters attend the NRL finals.

The Trust, with the support of the NSW Government, also completed a detailed design phase for a new world class stadium at Moore Park. Renowned architects Populous were in charge of a $5.8 million blueprint for Moore Park, which included a drop-down activation halo to scale the venue to “club” and “championship” mode − raising the bar for sporting innovation in Australia.

Following the announcement to restructure the biggest investment in NSW sporting infrastructure since the 2000 Sydney Olympic Games, Allianz Stadium will now receive a refurbishment once works are completed at Homebush and Parramatta.

The Trust is committed to providing the best possible facilities for our Members, our partners and the wider sporting public of NSW. World class infrastructure is vital to supporting our content, which has been reaffirmed by a number of long-term hiring arrangements. We will seek feedback from our members as to what our priorities should be.

Off the back of the exclusive 30-year Swans agreement executed in 2015, the Trust secured a 16-year Waratahs agreement, a 10-year Wallabies agreement and a four-year Sydney Sevens agreement at Allianz Stadium.

The future of rugby is at Moore Park, with the Australian Rugby Development Centre to be a new home for the Wallabies, Wallaroos, men’s and women’s Sevens program, junior development squads and Indigenous rugby as well as the University of Technology.

Meanwhile, the SCG is home to all international cricket in NSW and all Sydney Sixers games for the next seven years. The non-stop calendar of events has been enhanced by an improved game day experience for fans. High speed wi-fi, express food and beverage ordering and advancements in IPTV technology provide supporters and our members with a dynamic day of sport.

Our growing membership base, that includes more than 40,000 signed up or on the waiting list, is vital to our existence and we thank them for their ongoing support of the SCG and Allianz Stadium.

Our Trustees and senior management led by Chief Executive Jamie Barkley, have worked tirelessly to ensure Moore Park remains the number one destination for sport in NSW. And while the redevelopment of Allianz Stadium has been put on hold until the next term of government, the Trust remains absolutely committed to improving the precinct − just like we did when the Sydney Football Stadium broke ground in 1988.

That vision includes Stage III and Stage IV of the SCG master plan, which would transform the celebrated venue into one of the best oval grounds the world has ever seen, while continuing to preserve the historic Members and Ladies pavilions.

In June 2015 the SCG collected two prestigious trophies at the Stadium Businesses Awards in Barcelona. The grand old lady won Sports Event of the Year for the 2014 Major League Baseball Opening Series and Project of the Year for the MA Noble, Don Bradman and Dally Messenger stand redevelopment.

It’s been an incredible year for sport in NSW and for the Trust in particular. We watched some of the best athletes of this generation play in two premium venues and farewelled some of the greats of the past.

Arthur Morris springs to mind, and his legacy will be forever remembered on the Arthur Morris Gates at the SCG as we enter a bold new era for sport in NSW.

From the Sydney Sports Ground to the SCG’s Noble Bradman Messenger stands, the Trust will continue to celebrate sport, create history, enhance entertainment and share the experience as we look to build on 160 years of sporting heritage at Moore Park.

TONYSHEPHERDAOChairman


OUR VISION AND GOALS

Who We Are

The Sydney Cricket & Sports Ground Trust is responsible for managing two of Australia’s favourite sports venues – the Sydney Cricket Ground and Allianz Stadium.

Together these grounds form a central sports precinct of international standing that includes a sports museum, fitness centre, club facilities and the headquarters of several major sporting clubs and codes including rugby league, rugby, football, cricket and AFL.

We host nearly 100 events and attract almost two million visitors each year.

VISIONTo celebrate sport, create history, enhance entertainment and share the experience

VALUESPassionWe are passionate about the sports and events we host, and about innovation in all that we do

IntegrityWe operate as an ethical organisation with a clear set of values practised by all employees

HeritageWe honour our past as proud custodians of our history and traditions

RelationshipsWe promote positive relationships built on honesty, consultation and service

GOALSHeritageBeing an effective custodian of the heritage and traditions of our grounds and the sports they support

FacilitiesDeveloping and presenting our venues and facilities to the highest standard of safety and comfort

ServiceEnsuring our Member, partner, staff and customer experience is valued and recognised as best practice

CommercialEnsuring the continued commercial viability of the Trust


KEY OUTCOMES & PROGRESS ACHIEVED The following actions planned in the Trust’s Corporate Plan 2014-18 were achieved during the past year.

Heritage GoalBeing an effective custodian of the heritage and traditions of our grounds and the sports they support

STRATEGY

» Be an effective custodian or our heritage and traditions » Implement museum and archive plans » Investigate opportunities for developing

targeted publications for all stakeholders

KEYACHIEVEMENTS

» Developed a Conservation Management Plan » Installed interpretive signage for

external movable heritage items » Recorded five new oral histories

documenting memories of our grounds » Commissioned a new sports sculpture to

recognise football great Johnny Warren » Arthur Morris Gates were officially unveiled

to recognise the cricket legend » Hosted the second Jack Marsh History Lecture, with

author Greg de Moore providing a new perspective on Tom Wills ‒ the architect of Australian rules football

Facilities GoalDeveloping and presenting our venues to the highest standard of safety, comfort and facilities

STRATEGY

» Strategically invest in grounds and facilities through the annual capital works program and the Trust masterplan

» Increase cooperation and collaboration between the Trust, sports partners and key stakeholders

KEYACHIEVEMENTS

» Installed superscreens at Allianz Stadium » Implemented a Turf Management Program » Expanded Connected Stadium Solution,

including IPTV, free wi-fi access and mobile food and beverage ordering to Allianz Stadium

» Finalised plans for Australian Rugby Development Centre and University of Technology facilities onsite

» Reviewed consumer feedback of catering operations and renewed contract

» Implemented new procedures with caterers, tenants, hirers and suppliers to further increase recycling of waste generated on site

Service GoalEnsuring our Member, partner, staff and customer experience is valued and recognised as best practice

STRATEGY

» Strengthen ability to identify, understand and respond to Member, staff, partner and customer needs

» Use traditional, digital and social media channels to communicate with our patrons in a respectful and open manner

» Create fulfilling and memorable experiences for our partners and patrons

KEYACHIEVEMENTS

» Established a Disability Reference Group with external experts to provide guidance on implementing the Trust’s Disability Inclusion Plan

» Incorporated evacuation procedures for people with disabilities into staff training

» Developed a new Trust mobile app with improved access to information regarding events, transport, parking and fan activations

» Reviewed and updated the Trust’s Multicultural Plan » Completed tender and issued updated

contracts for cleaning services

» Hosted numerous community and grassroots sports events at our venues, including Jane McGrath Day, Take Heart Australia Day, the Anzac Day Fun Run, Stadium Stomp, Global Roll, the NSWRL and SCG Country Cup cricket grand finals and the Marathon of Cricket fundraising day for the Primary Club

» Implemented reforms applicable to the Trust under the Government Sector Employment Act

Commercial GoalEnsuring the continued commercial viability of the Trust

STRATEGY

» Increase and diversify the Trust’s revenue base » Negotiate strong long-term hiring deals

with sports partners and tenants » Review, enhance and grow key

supplies and sponsorship deals » Review the optimal membership category mix and

investigate other membership opportunities » Continue to develop and improve record management » Review, enhance and grow the corporate hospitality,

Gold and Platinum membership sales programs

KEYACHIEVEMENTS

» Extended the naming rights sponsorship deal with Allianz Insurance until 2022

» Brought forward (by a year to 2016) our agreement with the Sydney Swans to play all their home games at the SCG for the next 30 years until 2046

» Reached agreement with Cricket Australia to play all international matches in NSW at the SCG (Tests, ODIs and T20s) for the next seven years until 2022-23

» Reached agreement with Cricket NSW to play all Sydney Sixers BBL and selected WBBL and NSW Blues matches at the SCG for the next seven years until 2022-23

» Reached agreement with NSW Waratahs and NSW Rugby Union to play all matches at Allianz Stadium for the next 16 years until 2031

» Renewed the merchandise rights contract for the precinct (Playbill Pty Ltd)

» Secured an agreement with a dedicated commercial sales agency (OAMM)

» Secured an agreement with a dedicated corporate hospitality sales agency (Match Point)

» Improved quality of customer marketing data to increase hospitality sales success rate

» Prepared a five-year asset development plan in line with commercial growth expectations in corporate sales

» Reviewed corporate hospitality products and potential for development to achieve sales growth


AFLSYDNEYSWANS

The Sydney Swans made it to the semi-finals of the 2015 season and attracted strong crowds at the SCG. Adam Goodes retired graciously at the season’s end with 372 games, two premierships, two Brownlow Medals and 464 goals to his name. Their total attendance across eight home games was 258,033 for an average home turnout of 32,254.

MANAGING THE EVENTSA total of 1,451,940 fans came to events at the SCG and Allianz Stadium in the past financial year. See the table at the end of the section for a detailed breakdown of attendances.

Rugby LeagueSYDNEYROOSTERS

The Sydney Roosters recorded 11 straight wins on their way to their third straight minor premiership in 2015. They played nine home games at Allianz Stadium for a total attendance of 175,353, which includes a crowd of 35,110 that attended the annual Anzac Day Cup.

SOUTHSYDNEY

The South Sydney Rabbitohs played one home game at Allianz Stadium in 2015 against the Brisbane Broncos. The eventual grand finalists were too strong, beating South Sydney 47-17 in front of 12,036 fans on a Thursday night.

STGEORGEILLAWARRADRAGONS

The St George Illawarra Dragons played two home games at Moore Park in 2015. The first was a Heritage Round at the SCG against the South Sydney Rabbitohs, which celebrated the 50-year anniversary of the 1965 grand final. They also hosted the Sydney Roosters at Allianz Stadium on a Monday night and across both fixtures, attracted a total attendance of 28,402.

NRL FinalsA total of 83,263 fans attended the three NRL finals matches that were played at Allianz Stadium. The two qualifying finals saw the Sydney Roosters go down to the Melbourne Storm and the Cronulla Sharks defeat the South Sydney Rabbitohs. In the semi-final, the Roosters continued their record streak to beat the Canterbury-Bankstown Bulldogs 38-14 and book a spot in the preliminary final.

Rugby UnionWARATAHS

The Waratahs played six home games at Allianz Stadium which culminated in a semi-final loss to eventual champions, the Highlanders. Their total attendance for the season was 163,164. The Waratahs welcomed Daryl Gibson on board as their new head coach and agreed to play all home games at Moore Park.

ARUAllianz Stadium hosted the Sydney Sevens in February 2016 with 73,313 fans enjoying a two-day festival of rugby. The weekend saw 16 international teams compete for the HSBC Sevens World Series crown, with New Zealand trumping Australia after the siren to win the inaugural tournament. An estimated 20,000 fans also travelled from interstate and overseas to attend the event.


FootballSYDNEYFC

Sydney FC played 13 games during the 2015-16 reporting period and welcomed 218,980 fans through the Allianz Stadium turnstiles. After a successful home and away season, their run ended in a 3-0 defeat to Melbourne Victory in the A-League grand final.

FFA

Allianz Stadium hosted a Westfield FFA Cup semi-final between Sydney FC and Adelaide United in May 2015. The Sky Blues defeated Adelaide United 4-1 in front of 26,783 fans.

CricketCRICKETWORLDCUP

A total of 118,743 fans attended four Cricket World Cup games at the SCG. Australia beat Sri Lanka and England defeated Afghanistan in the lead up games, before South Africa met Sri Lanka in the quarter final. A week later, Australia were victorious over India in a thrilling semi-final in front of 42,330 fans.

NEWYEAR’STEST

A crowd of 32,128 turned out on day one of the New Year’s Test at the SCG, which saw Australia host the West Indies for the first time since 2001. Over 160 millimetres of rain was recorded from when play began until the last ball, but it didn’t stop David Warner from recording the fastest Test century in the ground’s history − reaching three figures off 103 balls. The McGrath Foundation also raised $160,000 with Members and fans donating generously.

SYDNEYSIXERS

The Sydney Sixers recorded a groundbreaking season with 111,824 fans coming to all four of their home games. The introduction of the WBBL Sixers side was also a massive win for fans. The two sides competed in the annual Sydney Smash, which broke a NSW domestic cricket attendance record for the second time in 12 months.

ONE-DAYINTERNATIONAL

A crowd of 33,710 fans watched India defeat Australia in the final One-Day International at the SCG in January. The highly entertaining match saw India reach Australia’s total with two balls to spare.

T20INTERNATIONAL

India completed a clean sweep of Australia in the T20 International series as India chased down 198 to win on the final ball in front of 34,527 fans. Earlier in the day, Ellyse Perry led the Southern Stars to a comprehensive win over India in the SCG’s first international double-header. The event turned pink to raise further funds for the McGrath Foundation after day three of the New Year’s Test was rained out.

SHEFFIELDSHIELD

The SCG scheduled three Sheffield Shield fixtures in the past reporting year. The first match was abandoned due to significant rain and the second match was subsequently relocated. The NSW Blues returned to the SCG in November and beat Queensland by seven wickets in excellent conditions.

ConcertsBritish superstar Ed Sheeran performed at Allianz Stadium in December in front of 47,641 screaming fans. Midway through the show, surprise guest Elton John joined Sheeran on stage for a duet of “Don’t Go Breaking My Heart” amidst lightning and rain that swept Sydney on the night.

Stadium StompStadium Stomp returned to Allianz Stadium and the SCG in July as participants climbed 6,300 stairs. Numbers were up by 63 per cent from 2014, with a total of 1,172 joining the action to raise $67,600 for charity.

OperationsSecurityandprecinctaccess: The safety of workers and patrons is a high priority. Following terrorist attacks in Brussels, Germany and Stade de France in Paris, the Trust has undertaken a review of all security protocols and venue access requirements.

The SCG and Allianz Stadium are regarded as places of mass gathering and potential targets and as such the Trust works closely with our hiring partners and NSW Police to determine appropriate responses to the threats posed at events.

The Trust has aligned its Security Management Plan with the Federal Government’s Protective Security Policy Framework. This project commenced in June 2015 and is due to be completed in October 2016. In addition to the policy, a significant investment has been made in physical security upgrades including:

» Expanding the security team to increase the frequency of security patrols around the precinct

» Upgrades to CCTV monitoring and recording systems

» Installation of additional electronic access control

» Digital venue access consoles for signing in and tracking contractors and visitors

The Trust is also trialling new advanced digital CCTV systems accompanied by object and facial recognition software.

Catering: After a successful review of Delaware North operations, the Trust reappointed its catering partner for another five years in November. They continue to provide quality service and offerings at the SCG and Allianz Stadium.

SCGEvents: SCG Events has become a well recognised event business associated with the Trust. They offer use of stadia facilities for private and corporate functions on non-event days and their financials have continued to grow under the management of Delaware North.

AzureCatering: Azure catering operated through 2015-16 in the fourth year of a five-year contract period to provide catering services to Members and those attending the Stadium Fitness Centre.

RiskManagement: The Trust consults with the Treasury Managed Fund and third party claim representatives Proclaim Management Services and Arthur J Gallagher for insurance claims. Risk management continues to be reviewed with sports partners, onsite tenants and contractors to ensure that workplace health and safety is of a high standard.

Ticketing: Ticketing services for both venues and the Trust’s sporting partners is provided by Ticketek, who continue to provide a strong distribution network and innovative feature.

Merchandising: The merchandise rights holder at the SCG and Allianz Stadium is Playbill Pty Ltd. They operate the Stadium Store and outlets in the grounds and work closely with venue sports partners to maximise sales. The Trust renewed their contract for a further five years.

Sydney Cricket & Sports Ground Trust Annual Report 201614

ATTENDANCE TABLE

Event Attendees

One-DayInternational Australia v India 33,710

T20International Australia v India 34,527

Testmatch Australia v West Indies 62,555

Twenty20 Sydney Sixers 111,824

Domesticcricket Sheffield Shield 2,441

CricketWorldCup Pool games 49,154

Quarter final 27,259

Semi final 42,330

ARU Sydney Sevens 73,313

SuperRugby NSW Waratahs 163,164

A-League Sydney FC 218,980

FFA Cup Semi Final 26,783

NRL Sydney Roosters 175,353

St George Illawarra Dragons 28,402

South Sydney Rabbitohs 12,036

Finals 83,263

Total 299,054

AFL Sydney Swans 258,033

Concerts Ed Sheeran 47,641

StadiumStomp Stair climbing challenge 1,172

SCG&ALLIANZSTADIUMTOTAL 1,451,940

STADIUMFITNESSCENTREVISITS 387,397

SCGTOUREXPERIENCE 10,641

TOTAL 1,849,978

15


MANAGING THE ASSETS

Operations

The Facilities team managed more than 8000 unscheduled maintenance jobs during the reporting period under a budget of $8.2 million. Services included painting, electrical work and mechanical orders to ensure the SCG, Allianz Stadium and surrounding facilities remained in first class condition.

The Trust’s asset management policy continues to enhance response times and has ensured the timely closure of work orders across the site to benefit our sports partners and fans.

Major achievements include the implementation of University of Technology facilities, an upgrade to catering and corporate facilities and the construction of the Arthur Morris Gates.

Capital Works ProgramIn accordance with condition and compliance based auditing, the Trust’s Total Asset Management Plan (TAMP) was incorporated into the annual Capital Works Program to underpin the effective maintenance of precinct assets.

COMPLETEDWORKSINCLUDED:

» Two newly designed interchange benches to AFL design brief

» Integration of University of Technology teaching facilities across the precinct

» Installation of the Arthur Morris Gates off Driver Ave » Resurfacing of Allianz Stadium » Upgrade of retail catering outlets at

SCG and Allianz Stadium » Installation of fire suppression system

into Members food outlet » Upgrade of four corporate suites at Allianz Stadium » Replacement of air conditioner units to

corporate suites at Allianz Stadium » Refurbishment of Trust suite at Allianz Stadium » Upgrade of lighting at Allianz Stadium » An upgrade of furniture and equipment at the

Stadium Fitness Centre and Azure cafe

Playing Field Maintenance SCG

The SCG hosted more than 30 events during the reporting period with the surface catering for international and domestic cricket as well as AFL and NRL fixtures. The condition of the playing surface was of a high standard for the Cricket World Cup and the Sydney Swans season that followed shortly after that.

The 2015/16 summer brought with it some untimely rainfall as the SCG outfield received a month’s rain in a week, leading to the abandonment of a Sheffield Shield match. Wet weather continued in January and grounds staff worked overtime to keep the New Year’s Test in action, despite more than 160 millimetres of rain being recorded across the five days. The field of play remained in first class condition for Sydney Sixers games and the cricket internationals that followed.

ALLIANZSTADIUM

In the last reporting period, Allianz Stadium hosted more than 30 sporting events across football, rugby league and rugby union. The venue also successfully hosted an Ed Sheeran concert in early December and turned the pitch around within a fortnight for a Sydney FC game. After a busy winter period of all three football codes, a total of 10,000 square metres of Grand Prix couch grass was laid in December/January, with a crew of 13 women helping to complete the project while regular staff were busy next door preparing for the New Year’s Test. In February, Allianz Stadium hosted the Sydney Sevens for the first time, an event which saw 16 international teams compete in two days of non-stop rugby.

Environment and Sustainability GREENERANDSMARTER

The Trust’s Strategic Environmental Management and Sustainability Plan has been developed to improve the operations impact on the environment. Goals include:

» To better understand the impact of our operations on the environment

» Implement realistic, achievable targets and objectives aimed at continually improving sustainability performance

» Improve the performance of systems used to monitor the use of energy, water and waste

» Foster engagement between the Trust, it’s stakeholders and environmental protection

» Drive sustainable purchasing practices, waste reduction and recycling strategies

» Invest in renewable energy systems and commit to regular equipment turnover to maintain efficiency ratings and reduce the Trust’s carbon footprint

» Develop a carbon offset program

The Trust in cooperation with its cleaning, catering and waste providers undertook a comprehensive review of waste management across Allianz Stadium and the SCG, focusing on event and non-event periods. The process identified a number of areas to reduce general waste and increase the amount of co-mingled recycling generation.


Continued ImprovementThe Trust continued its LED (light emitting diode) replacement program which aims to eliminate the use of incandescent, halogen and compact fluorescent light bulbs by 2017.

REDUCINGWASTE

The Trust has increased recycling of event-related waste from 55 per cent to nearly 70 per cent, resulting in a recovery of 150,000kg of waste over the past year. This increase is a result of the use of off-site recycling reduction centres and upstream recyclable packaging selection. In addition, a number of measures have been implemented from a resource recovery perspective to completely remove mass from the waste cycle.

19

RESOURCERECOVERY

Resource recovery continues to gain momentum with the installation of several glass crushing units under the SCG Members Pavilion. The units crush glass bottles to fine silicon sand which can be reprocessed to create new glass, used as an additive in fertilisers and as a set agent in concrete. It is estimated that the glass crushers have recycled approximately 8.4 tonnes of glass since their installation in March 2015.

GREENANDCLEAN

Organic waste from kitchen and food stores is broken down by organic waste units and reused in gardens across the precinct. Soil is then used as the growing medium for the SCG’s herb and vegetable garden.

The Trust’s investment into beverage cups made from recycled material has continued during the period with nearly three million used by patrons at events.


HEALTH AND SAFETYIn accordance with the 2014-18 Corporate Plan, the Trust continued its commitment towards the health and safety of its workers, partners and visitors. Following preparations to align the Health and Safety Management system with OSHAS18001:2007, emphasis was placed on training, consultation and fostering health and safety leadership within the organisation. This will be maintained as the Trust looks to align its systems with ISO4500.

Focus areas for this period included:

» Review of the Emergency Management Plan and response procedures following terrorist attacks in Paris in November 2015. Of particular importance was the integration of procedures into the NSW Police critical incident response framework

» The Trust facilitated approximately 2,360 hours of health and safety related training over the period, including 873 hours of accredited training. Topics included manual handling, safe working at heights, emergency management and vehicle safety

» Developing stronger consultation and communication channels through the precinct Health and Safety Committee and Emergency Planning Committee in addition to developing platforms to report hazards, incidents and system non-conformances

Our AchievementsThe Trust’s robust health and safety management systems have yielded a reduction in both worker and visitor related injuries and incidents. Leading indicators such as system non-conformance reporting, training and consultation contact times continue to show steady increases. The Trust has perpetuated a proactive safety culture through the ongoing improvement of leading safety and incident reports.

The Trust’s Health and Safety committees, consisting of representatives from eight divisions, major contractors and partners, met 15 times throughout the year to encourage a collaborative approach.

As can be seen in Figure 1. The Trust’s Lost Time Injury Frequency Rate remained at zero for the majority of the reporting period. Only one lost time injury was reported during the year (where an employee was required to take time off as a result of an injury sustained at work).

Total reportable injuries in Figure 2. remained steady when compared to the previous year. This is despite an increase in events and patronage at the SCG and Allianz Stadium as a result of the ICC Cricket World Cup and the Sydney Sevens tournament.

FIGURE1.LOSTTIMEINJURYFREQUENCYRATE(LTIFR)

Jan

2013

Mar

201

3

May

201

3

Jul 2

013

Sep

2013

Nov

201

3

Jan

2014

Mar

201

4

May

201

4

Jul 2

014

Sep

2014

Nov

201

4

Jan

2015

Mar

201

5

May

201

5

Jul 2

015

Sep

2015

Nov

201

5

Jan

2016

– – – – – – – – – – – – – – – – – – –

3

2

1

0


Workplace Injury ManagementEvent related injuries and illnesses experienced a reduction from 259 to 241 (down 7 per cent). As can be seen in Figure 3. mechanism of injury (cause of injury) was consistent with previous years, with 57 per cent of reported injuries and illnesses categorised as pre-existing − meaning the cause of the injury did not come from within the precinct or as a result of work undertaken on the site.

FIGURE2.AGGREGATEOFMEDICALINCIDENTS-COMPARATIVEANALYSISSINCE2010/11SHOWINGOVERALLREDUCTIONINMEDICALINCIDENTS.

KEY

Non Event Event Total

Medical Incidents 2010/11






0 100 200 300 400 500 600

25462

487

68287

355

65259

324

14361

375

80262

331

33241

274

The second most common mechanism of injury was slips and falls (23 per cent) and undertaking hazardous manual tasks (4.5 per cent). Incidents requiring emergency medical attention and hospitalisation were further reduced from last year’s figure of 5 per cent to 4.2 per cent (meaning less than five of 100 injuries/illnesses, reported/treated required an ambulance or the patient to visit a hospital).

FIGURE3.MECHANISMOFINJURYBREAKDOWNFORALLREPORTEDINJURIESWITHINTHEPRECINCT.

53%

11%

21%

4%

5%

6%

Pre-existing

Manual Handling

Exercising in Stadium Fitness Centre

Exposure

Slip/Trip/Fall

Collision

KEY


STRATEGY AND PROJECTSStrategy and Projects is the division of the Trust with the key responsibility for overseeing the precinct master plan and other major projects.

On 4 September 2015 the NSW Premier announced the biggest investment in sport and major event infrastructure since the 2000 Sydney Olympic Games. This included a new rectangular stadium at Moore Park with a capacity of 50,000 to 55,000 seats and allocated $5.8 million of funding for this project in the 2015-16 budget.

World-leading architects Populous were appointed to undertake the detailed concept design phase for the National Football Stadium (NFS).

The proposed development was to create a world-significant sporting campus in Sydney that would provide training and administration facilities for national, state and local codes and clubs, as well as the University of Technology Sydney’s sports education campus.

Surrounded by the Centennial Parklands, the design brief was underpinned by a ‘whole of precinct approach’ and desire to create a stadium and recreational hub within a parkland setting. Plans included the revitalisation of surrounding green space to provide recreational and open parkland for the community to enjoy.

The NFS concept features an innovative dropdown LED halo to scale the venue to “club” and “championship” modes that was to provide fans with an unparalleled spectator experience.

The concept design phase commenced in November 2015 after procurement of the consultant team, comprising of more than 25 companies, with the target date for completion in May 2016.

On 14 April 2016 the NSW Premier announced a change in the priority order of the investment into stadia, noting that the redevelopment of Allianz Stadium would be a refurbishment to be undertaken after the next State Government election in 2019.

At that time the concept design was 90 per cent complete and all project funding had been fully committed. The project was stopped in mid-April, with the compilation of a final design report to be finished in the months that followed.

Following the Premier’s announcement, the Trust is focusing on working closely with neighbouring organisations, residents and its sports partners to ensure better outcomes for the precinct, the parkland and all stakeholders.


COMMERCIALA strong performance in Gold and Platinum membership sales and the successful launch of wi-fi, IPTV advertising and a sponsorship rights program at Allianz Stadium has seen Trust commercial revenue grow by nine per cent to $23,361,656.

Sponsorship, Supply and Advertising RightsThe Trust’s advertising and sponsorship program continues to make a significant contribution. Revenues exceeding $13 million were generated via the sale of sponsorship, advertising, supply and product rights.

Out and About Marketing and Media our commercial rights partner, provide the Trust with an outstanding financial return. The Trust has capitalised on their expertise, commercial insight and their understanding of digital assets available as a result of the investment in wi-fi and IPTV technology at Allianz Stadium and the SCG.

Accordingly, the Trust has enjoyed successful advertising and sponsorship partnerships with News Corp, Tabcorp, Qantas, Ticketek, Sony, IOOF, Telstra and Diners Club as well as our supply and product rights partners, CUB, CCA, Diageo, Jim Beam, Tyrrell’s, Samuel Smith & Sons and Treasury Wine Estates.

In August of 2015, Allianz Australia committed to a five-year extension as the naming rights partner of Allianz Stadium. This extension will take the partnership through until February 2022 and promises to be a long and successful one for both organisations. We thank them for the faith and belief they have shown in the Trust, our special and unique precinct, and most importantly, in Allianz Stadium.

HospitalityIn October 2015 the Trust appointed Match Point as its exclusive Hospitality Partner, trading as SCG Hospitality, for event based products. Match Point’s agreement will provide the Trust with a comprehensive return, capitalising on their years of expertise and commitment to the delivery of a commercially robust, high quality, event-based hospitality program.

In keeping with our desire to establish long-term partnerships, the Trust is conscious of continuing to offer the market valuable opportunities. With this in mind, we are constantly searching for unique product offerings to satisfy the needs of our valued customers. In 2016, the Trust retained upwards of 90 per cent of our existing long-term hospitality partners. New long-term sales did not quite reach expectations, but with the schedule of events at Allianz Stadium and the SCG continuing to grow, this will improve in the coming years.

Gold and Platinum Membership SalesThe Trust again focused on offering Members opportunities to upgrade their existing membership status, or to introduce friends and colleagues to the benefits of Gold and Platinum membership. Building relationships with strategic commercial partners to provide quality incentives and rewards for new, referring and upgrading Members was critical to the success of these campaigns. This support, plus some excellent work by the entire commercial team saw sales of Platinum and Gold memberships exceed $5.5 million.

Long-Term Hiring AgreementsThe 2015/16 financial year was an excellent period for the Trust as it consolidated substantial event content. Off the back of the exclusive 30 year (2017-2046) Swans agreement executed in 2015, the Trust secured the following long-term hiring agreements:

» 16-year exclusive Waratahs agreement (2016-2031) » 10-year Wallabies agreement extension (2022-2031) » Four-year Sydney Sevens agreement (2016-2019) » Seven-year exclusive international cricket agreement (2015/16-2022/23) » Seven-year exclusive Sydney Sixers agreement (2015/16-2022/23)


MEMBERSHIPThe Membership and Marketing division manages membership services, the Stadium Fitness Centre, the SCG Tour Experience, the SCG Museum and the marketing of Allianz Stadium, the SCG and the Trust.

During the past financial year, the division also assumed responsibility for the Trust’s information and communications technology (ICT) operations. This includes new digital projects related to improving the event day experience for fans and generating content for the IPTV screens at both venues.

Membership ServicesMEMBERSHIPSUPPORT

The division includes a Member and Customer Services team which operate a call and email centre to deal with general enquiries, waitlist applications, sale of day passes, seat reservations and managing reciprocity with interstate and overseas venues.

The team also staffs the Venue Services Office which is the focal point for the tour bookings and fitness centre programs as well as bookings for tennis and squash courts, Crèche and the swim school.

SCGMEMBERSHIPELECTIONANDWAITLIST

In January 2016 the Trust offered SCG membership to 1,098 applicants who joined the waitlist in 2003. The offer was accepted by 312 new Members (163 opting for Double membership, 78 Single and 71 Junior) representing a 28 per cent take up and $335,000 in revenue. At the end of February 2015, there were 20,375 applicants on the SCG waitlist dating back to January 2004.

SUBSCRIPTIONRENEWALSANDMEMBERNUMBERS

Member numbers have remained relatively stable at 18,412 (up by 237 on the previous year). The membership category breakdown is eight per cent Platinum, 34 per cent Gold and 58 per cent SCG, which is consistent with other reporting periods.

The Trust received 43 resignations this year, down slightly compared to previous years (68 resignations in 2014-15 and 80 resignations in 2013-14). Reasons for non-renewal include old age, ill-health, value for money, financial difficulties and travel.

The high retention rate can be attributed to a strong event schedule at both grounds and enhancements to Member facilities and services.

SPECIALARRANGEMENTSFORINTERNATIONALCRICKET

Members were offered a program of special off-field events during the New Year’s Test. These became especially important in 2016 with rain washing out the on-field action for nearly three days of Australia’s draw against the West Indies.

The following activities were planned:

» Members Breakfast, Curator’s Breakfast, Country Member Reception, Jane McGrath High Tea, Stumps Sessions, Kids Cricket Clinics, Basil Sellers Sports Sculptures Tours and the Cricket Book Writers Forum

» The ‘Village Green’ and Sydney Live Plaza with a large screen and additional bar and food facilities were also in operation across all five days

Reserved seating was offered to Members for the first four days of the Test and the one-day and T20 internationals against India in January. The cost was $25 per seat per day (the same price since 2014). Reserved seating is provided free to people who have held membership for 50 years or more. In line with Cricket Australia’s wet-weather policy, all reserved seat revenue for days two, three and four of the Test was refunded.

Marketing and Digital CommunicationsMEMBERCOMMUNICATIONS

The Trust made the following digital advancements to cater for Members. Refer to the Communications report for a full breakdown of Member communications.

» Updated the mobile phone app to accommodate additional features including options for mobile pre-ordering of food and beverages, sports trivia and ‘fan cam’ features

» Placed regular advertising in major state newspapers to keep Members and fans informed ahead of major events

» Conducted regular and targeted email and app campaigns

CONNECTEDSTADIUMSOLUTION

The Connected Stadium Solution (IPTV, wi-fi and mobile app) has engaged new digital marketing channels to keep fans in touch with the action and allow venues to be ‘branded’ in home colours.

It has also facilitated fan promotions and provided information such as statistics and trivia in a visually-creative format to add to the game day experience.


Among the many new uses, our IPTV ties in with other digital platforms to enhance and promote services such as the improved app. This includes mobile food and beverage pre-ordering, a fan cam feature and pre-game ‘digital takeover’ promotions.

All creative content and scheduling for these screens is overseen by the Marketing department in close collaboration with our sports partners. To encourage Members and public spectators to embrace the new digital services, the Trust staffed ‘digital experts’ at events, and provided a digital hub in the Members Reserve.

EVENTADVERTISING

The Trust prepared numerous advertisements during the last year in support of its sports partners and in the lead up to major events. The majority of expenditure was provided by News Corp ($450,000) as part of contra arrangements in the partnership agreement. An additional $100,000 of Trust funds was dedicated to these campaigns.

WEBSITE

Marketing oversaw the creation of several promotional web banners throughout the year to ‘brand’ our website for special events such as concerts, cricket, the Sydney Sevens tournament and other matches for our sports partners.

Over the past year, the Trust recorded a decrease in the number of people using the Trust website, but an increase in the average time that users spend on our pages. This change in behaviour may be a result of increased social media and mobile app activities, which provide an alternative channel for information.

CUSTOMERRESEARCH

The Trust has surveyed its Members and the general public at events over the last 10 years to benchmark and monitor change in their perceptions of the game-day experience.

The Membership and Marketing division commissioned specialist sports and entertainment business consultants IER to undertake research that assesses specific locations, facilities, services and products offered during the year, including:

» Accessibility, event day staff, amenities, security and safety, entertainment, merchandise, information, food and beverages

A summary of the latest results, compared to previous years are outlined in the tables below. Generally, they show customer experience scores have gradually improved or been maintained at a high standard.

Membershipscore:

2010 2011 2012 2013 2014 2015

SCG 6.9 6.9 7.2 7.4 7.6 7.8

AllianzStadium 7.0 7.0 7.2 7.5 7.4 7.4

Generalpublicscore:

2010 2011 2012 2013 2014 2015

SCG 7.6 7.2 7.5 8.0 8.0 7.9

AllianzStadium 7.0 7.6 7.2 7.7 7.7 7.7

Stadium Fitness CentreUSAGE

The Stadium Fitness Centre recorded 387,397 visits from Members and guests during the past year, which was up 18 per cent on the previous 12 months.

This is largely attributed to the fitness centre increasing special Member events and programs such as networking meetings with guest speakers, boot camps and other offerings.

Revenue targets that exceeded budget included:

» Group Exercise Program: By adding new classes and altering the timetable every three months based on attendance, overall visits have increased in the past year

» Swim School Program: This generated more than $100,000 in revenue following the appointment of a swim school coordinator to improve customer service, quality measures and consistency

» Personal Training: Our highly valued Personal Training Program and Personal Training Rental System contributed almost $170,000 in revenue

» Tennis Program: This had a successful year with staff introducing new elements and continuing popular activities such as tennis camps, competitions and lessons

MEMBERRESEARCH

The Stadium Fitness Centre commissions annual surveys to collate Member feedback. Nearly 800 Members (out of a possible 6,500) completed the 2015 online survey, undertaken in June by consultants IER. Their report was presented to the Trust in August and made available to Members in September.

The feedback was positive, with satisfaction ratings for equipment and services scoring between 7.5 and 8.5 out of 10. The main gym, pool and Azure cafe were easily the most popular facilities.

Fitness assessments and programs also recorded high scores, with 73 per cent of participants reporting that it delivered the results they were seeking.

The most common complaints were too many people in the gym at peak times and requests for a greater variety or lower volume of background music. Members also expressed a desire to see swim school classes run on Sundays.

In response to this feedback, the Stadium Fitness Centre is looking into possible expansion options to maximise space, has updated its music selection, and has implemented Swim School classes on Sunday mornings.


PERFORMANCEIMPROVEMENTPLAN

During the past year, the Trust has produced a Stadium Fitness Centre Performance Improvement Plan (2016-2018). The document provides management, staff and contractors who work at the fitness centre with a clear view and understanding of the facility’s direction.

Over the next three years, it will be a blueprint for more detailed proposals to:

» Modernise equipment to a premium standard

» Create new Member offerings in line with industry trends

» Upgrade ICT to improve efficiency and engagement

» Introduce development programs to improve the customer experience

Museum, tours and heritage activitiesSCGEXPERIENCE

Museum and tours underwent a rebrand during 2015-16 and adopted a new name − SCG Experience − that positions the two activities under the same title. The rebranding also led to a new logo and updated marketing materials.

TOURS

The Trust offers a behind-the-scenes historical journey through the SCG, Allianz Stadium and SCG Museum. It is suitable for school groups, sporting clubs, tourists and international travel groups, seniors’ outings and local visitors.

During the past year, the tours:

» Attracted 10,641 visitors (up 31 per cent on 2014-15), producing $179,111 in revenue

» Hosted 987 American students and teachers as part of the People to People student ambassador program, generating $25,772 in revenue

» Introduced the Blazing Bats and Balls children’s holiday tour program during January, which hosted 11 tours and generated $4,200 in revenue

» Ran a Clash of the Captains children’s holiday program during school holidays, which received 234 visitors and generated $2,808 in revenue

» Added an Anzac-themed April children’s holiday tour program which received six group bookings, 124 visitors and generated $1,320 in revenue

» Streamlined operations and gained marketing benefits by moving tickets sales online to Eventopia

MUSEUMANDHERITAGE

As custodian of the traditions of our grounds, the Trust continued to research, document, preserve, interpret and communicate our heritage to the public.

The number of Members and guests visiting the museum (independent of tours) was approximately 3,500 (down from 6,500 the previous year). The decrease is attributed to wet weather during the New Year’s Test and One-Day International.

Among its key achievements in the past year, the SCG Museum:

» Ran an exhibition on the life of Victor Trumper which formed part of a weekend-long symposium that coincided with the 100th anniversary of Trumper’s death. A total of 129 visitors attended a lecture series in the SCG Members Pavilion

» Hosted the second Jack March History Lecture, which saw Greg de Moore provide a new perspective on the dramatic life of Tom Wills ‒ Australia’s first great cricketer and the architect of Australian rules football

» Engaged marketing experts Enrich Consultants to develop a marketing plan for the SCG Experience

» Commissioned a historian to produce five oral history interviews per year for the museum’s ongoing collection

» Created an SCG timeline, as well as museum and tour information as part of the SCG Experience branding launch

INFORMATIONANDCOMMUNICATIONSTECHNOLOGY

The information and communications technology (ICT) operations section became part of the Membership and Marketing division.

Along with implementing new digital projects, our ICT team manages the computer, telephone and other communications networks that are integral to Trust operations.

Key achievements during the reporting period include:

» Integrating Allianz Stadium into the ‘Connected Solution’ project, originally rolled out in the new SCG Members stands the previous year. This was a first for an entire Australian stadium and provided Members and public patrons with:• Free wi-fi that is 10 times faster than

standard home connections• An IPTV network of 1200 video screens that is

used for game broadcasts, event information, catering displays and promotional activities

• Two new video superscreens at each end of the field, the largest of any rectangular venue in the Southern Hemisphere

• New digital LED ribbon boards around the field perimeter that display commercial content

The roll-out included a new control room at Allianz Stadium capable of coordinating IPTV, superscreen and LED content to optimise fan and commercial benefits.

The capabilities of the Connected Solution were demonstrated to current and potential commercial partners in February 2016. Initial work has also been completed on the feasibility of expanding the project to the SCG’s public stands:

» Overseeing an update of the Trust’s mobile phone app with several enhancements including a new system for ordering food and beverages. The Trust partnered with AirService to deliver the express solution, which generated revenue in excess of $15,000 from 500 orders during the Sydney Sevens

» Upgrading the SCG superscreens to high definition for the cricket season. The project included purchasing new venue cameras and hardware

DigitalInformationSecurityAnnualAttestationforthe2015/16FinancialYearfortheSydneyCricketandSportsGroundTrustI, Bernie Lamerton am of the opinion that the Sydney Cricket and Sports Ground Trust (the Trust) is presently reviewing its Information Security Management System (ISMS) and will take steps to address any non-conformance, as may be relevant, to develop the ISMS to be consistent with the Core Requirements set out in the Digital Information Security Policy for the NSW Public Sector.

I, Bernie Lamerton am of the opinion that the Trust will put in place necessary controls to mitigate identified risks to the digital information and digital information systems of the Trust which will be adequate for the foreseeable future.

Risks to the digital information and digital information systems of the Trust will be assessed in accordance with the NSW Government Digital Information Security Policy.

Bernie Lamerton General Manager, Corporate Services 1 March 2016


MEDIA AND COMMUNICATIONS

Communications

The Trust Communications division is responsible for communications, government relations, public relations, stakeholder and community engagement and media services. The Communications team provides high level support to all departments and external stakeholders as outlined in the Corporate Plan.

MEMBERCOMMUNICATIONS

The Trust places a high importance on communication with its Members. Over the past year, the division has produced the following material, in collaboration with the Membership and Marketing team:

» Winter and summer editions of the Around the Grounds magazine (an online flipbook version is available on the Trust website)

» Free interactive iPad and Android tablet editions of the magazine

» Members cricket season pack » A Test match statistics booklet » Daily Innings news sheets

during the Test match » Weekly e-newsletters » News and information updates

via the Trust website » A Members booklet for

the Sydney Sevens

SOCIALMEDIA

Engagement and followers of the Trust’s social media channels continue to grow. Significant increases were recorded around key events such as the Sydney Swans’ finals run, the Ed Sheeran concert and the inaugural Sydney Sevens. Free wi-fi at Allianz Stadium and in the Members Reserve of the SCG has allowed fans to share photos and comments immediately while at events, which also contributed to a growth in engagement.

SCG Facebook Twitter Instagram

2015/16 82,267 17,900 9,553

2014/15 42,219 12,400 4,595

2013/14 14,836 6,650 1,781

AllianzStadium Facebook Twitter Instagram

2015/16 11,940 6,599 3,330

2014/15 8,885 6,310 2,118

2013/14 1,232 2,240 840

GOVERNMENTRELATIONS

The Trust continued to work closely with relevant departments and agencies on several projects including the NSW Government’s $1.6 billion investment in Sydney stadia and the CBD and South East Light Rail project. The department is in regular contact with the Minister’s office and the Office of Sport to provide support, advice and document as needed.

The department also regularly hosts tours for visiting dignitaries and politicians and in the past 12 months has conducted tours of the SCG and Allianz Stadium for prominent Indian political figures including Minister of Mines Narendra Singh Tomar, Minister of Corporate Affairs Sachin Pilot and a delegation of senior bureaucrats from the office of Indian Prime Minister Narendra Modi. The department also hosted visiting dignitaries from Indonesia, Singapore, Japan and the the Czech Republic.

Public RelationsAWARDS

The SCG Trust was recognised at the 2015 Stadium Business Awards, collecting two honours in front of world stadia representatives at a gala dinner at Barcelona’s famed stadium, the Camp Nou.

Trust Chief Executive Jamie Barkley was on hand to collect the 2015 Sports Event of the Year for Major League Baseball at the SCG and 2015 Project of the Year for the SCG – MA Noble, Don Bradman, Dally Messenger stands.

ARTHURMORRISGATESANDMEMORIAL

The Arthur Morris Gates were officially unveiled by His Excellency General The Honourable David Hurley and SCG Trust Chairman Tony Shepherd in a special ceremony on 19 August. Situated along Driver Avenue, the gates provide a wonderful entrance to the SCG training field. Guests enjoyed a luncheon in the SCG Noble Trust suite following the ceremony.

Mr Morris died a few days after the gates were unveiled by his wife Judith. A public memorial service was held at the SCG on Tuesday 8 September. The order of service included a welcome by the SCG Trust Chairman, addresses by the Governor of New South Wales and Major General Greg Melick, and an interview with Neil Harvey.

TAKEHEARTAUSTRALIADAY

Allianz Stadium was the focus of a world record attempt by charity organisation Take Heart Australia in November for the most people participating in CPR across multiple venues. The collaboration was part of a wider push to increase public knowledge and awareness of sudden cardiac arrest, with the goal of teaching thousands of people how to save a life. The event was broadcast on the Channel 9 Today Show.

AUSTRALIANRUGBYDEVELOPMENTCENTRE

The SCG Trust took the lead role in preparing a communications and engagement plan related to the joint development of the Australian Rugby Development Centre by the ARU, University of Technology Sydney and the Trust.

MEDIA

SCG Trust staff continued to provide media relations support and a high level of media operations on event days and non-event days, including:

» NRL Final series launch » Fox Sports recording at Allianz

Stadium for Dally M broadcast » A-League season and

Sydney Derby » The Project feature on

McGrath Foundation and Jane McGrath Day at the SCG

» The Australian Golf Digest Player of the Year Awards

» The Australian Cricket Media Association annual dinner

» The Australian Rugby Media Association annual function

» An episode of Channel 10’s The Bachelorette at the SCG

» An episode of Celebrity Apprentice at Allianz Stadium


CORPORATE SERVICES

Financial Report

The Trust is a NSW Government Trading Enterprise constituted under the provisions of the Sydney Cricket & Sports Ground Act, 1978. The Trust is a not for profit entity (profit is not its principle objective). The reporting entity is consolidated as part of the NSW Total State Sector Accounts.

The Trust’s operations for the financial year ended 29 February 2016 resulted in an operating surplus of $2.405 million compared to $1.812 million in the previous year. This surplus was transferred to accumulated funds, which stood at $332.7 million as at 29 February 2016. The budget for the past financial year projected an operating surplus of $1.796 million.

The Total Comprehensive Income for 2015/16 (inclusive of grants $5.8 million and land revaluation $18.516 million) was $26.424 million. This compares to $28.191 million recorded in the previous year (inclusive of a grant of $12.240 million).

During the past year, the Trust undertook a capital works program valued at $19.1 million. This is inclusive of part of the proposed National Football Stadium concept design phase and installation of the new Allianz Stadium video boards. This program was primarily funded through operational revenue together with a NSW Government grant of $5.8 million.

Capital debt was reduced from $81.5 million to $79 million at the close of the year.

Operating Income and ExpenditureThe results for the reporting period show an increase in operating revenue before grants for 2015/16 $86.5 million compared to 2014/15 ($83.6 million), and an increase to operating expenditure, $84.1 million compared to $81.8 million the previous year.

The Trust’s financial performance for the past year reflected the following aspects of operation:

» Annual event attendance of 1.4 million patrons (1.5 million in the previous year)

» An event schedule featuring a broad range of sport and entertainment including the Cricket World Cup, international cricket, all four major football codes, World Rugby Sevens and one outdoor concert

» Higher catering revenue than the previous year

» Continued strong membership retention levels resulting in increased annual subscription revenue

» Increased sales of new Gold and Platinum memberships and comparable sales of SCG memberships

» Lower demand for premium seating and corporate box rental

» Higher sale of advertising and sponsorship revenue contracts

» Lower event operating costs and comparable permanent employee related expenses

» Higher ground operation and maintenance costs

» Higher debt finance costs - interest paid

» Increased depreciation charges following completion of the Noble Bradman Messenger stands construction

» Debt repayments of $2.2 million » Capital works program

undertaken - $19.1 million » NSW Government Grant of $5.8

million towards a proposed new football stadium concept design

See below a detailed comment on the main aspects of the Trust’s financial performance during the past year.

MEMBERSHIP

The Trust offers three major forms of membership – SCG, Gold and Platinum – providing entitlements to events and facilities at the SCG and Allianz Stadium.

Membership subscription rates were increased during 2015/16. Continued strong membership retention levels reflect the ongoing enhancement of the event calendar at the SCG and Allianz Stadium as well as other services available to Members. In 2015/16, membership annual subscriptions revenue was $19.1 million compared to $18 million recorded in the previous year.

Entrance fees recorded for new members at the SCG (predominantly sales to the 12-year wait list) during 2015/16 was $586,000 compared to $655,000 in the previous year.

Entrance fees received from the sale of new Gold and Platinum memberships generated sales revenue of $5.7 million, compared to $4.9 million in the previous year.

VENUE/EVENTHIREFEES

During the past year the total attendance of patrons at events staged at the Sydney Cricket Ground and Allianz Stadium was 1.4 million. Revenue from hire fees was $10.5 million, comparable to the previous year.

Highlight events staged during the year included four well attended Cricket World Cup games, the partly washed out Australia-West Indies Test Match, a One-Day International, an International T20 fixture, Sydney Sixers home games, Sydney Swans fixtures, the Anzac Day Cup, NRL semi-finals, World Rugby Sevens and one outdoor concert (Ed Sheeran).

Long-term contractual arrangements with major sporting bodies provide a broad-based program of sporting events at Trust grounds. Major hirers’ contracts are current at the SCG (Cricket NSW, Sydney Sixers and the Sydney Swans) and at Allianz Stadium (Australian Rugby Union, NSW Rugby, National Rugby League, Sydney Roosters, St George Illawarra Dragons, South Sydney Rabbitohs and Sydney FC).


CATERING

The Trust’s net share of catering sales (including amortised contract premiums) at the SCG and Allianz Stadium was $4.8 million (food) and $6.2 million (liquor) - compared to $4.8 million and $6 million respectively in the previous year.

Under the terms of the current contract, a premium amount was initially paid by the caterer to the Trust representing catering fees paid in advance. Further, an additional sum was paid by the caterer and applied to various catering outlet refurbishments and purchase of associated equipment. The total premium amount initially paid under the current contract is being amortised annually over the term of the contract.

ADVERTISINGANDSPONSORSHIP

Arena advertising signage and sponsorship revenue includes product rights at each venue. Revenue generated for 2015/16 was $14.8 million (including newly contracted arrangements) compared to $12.1 million in the previous year. The Trust contracts the sale of advertising in the form of LED, fence, grandstand facades, IPTV/wi-fi and video scoreboard signage. Costs incurred in servicing and commission for advertising signage and sponsorship arrangements were $2.6 million compared to $1.9 million in the previous year.

CORPORATESEATINGSALES

The Trust corporate facilities/packages available include annual private suites, corporate boxes and Premier Club membership, as well as a comprehensive range of seasonal and casual box and dining room packages.

The Trust markets the sale of corporate hospitality for events at the SCG and Allianz Stadium for Trust allocated areas for cricket, Sydney Swans, Sydney FC, rugby union, rugby league and concert events.

Revenue from rental of private suites/corporate boxes during the year was $3.8 million, compared to $4.4 million received in the previous year. Sale revenue for allocated premium public seating for major events generated revenue of $310,000 compared to $369,000 received in the previous year.

PREMISESRENTALINCOME

The Trust holds long-term tenancy arrangements for office administration and players’ facilities located within its precinct. The Trust tenancies currently comprise headquarters for Cricket NSW, Sydney Sixers, Sydney Swans, NSW AFL, University of Technology, NSW Rugby, National Rugby League, Sydney Roosters, Sydney FC, Delaware North Catering, Stadium Sports Medicine Clinic and travel agency FanFirm. Tenancy rental income received in 2015/16 was $3.8 million compared to $3.7 million in the previous year.

INVESTMENTMANAGEMENTPERFORMANCE

Interest received on investments totalled $142,000 as compared to interest of $224,000 received in the previous year.

During the reporting period available surplus funds were invested with the NSW Treasury Corporation in both

the Hourglass facility and on term deposits. The return on the Trust’s invested funds from these facilities represents the rate of 2.34% for the year ended 29 February 2016.

EVENTOPERATINGCOSTS

The Trust incurred direct event costs of $14.3 million during the year (compared to $15.7 million in the previous year) in staging all sporting and other events at the SCG and Allianz Stadium.

GROUNDOPERATIONANDMAINTENANCE

Maintenance expenditure of $11.9 million was incurred during the past year on grounds, buildings and plant, compared to $11.4 million in the previous year.

The Trust employs a permanent trades workforce, service contractors and subcontractors to undertake the annual program of maintenance of grandstands, buildings, plant, grounds and playing arenas at the SCG and Allianz Stadium.

CORPORATESEATINGEXPENSES

Premium seat packages sold to corporate customers for major events incur costs in marketing and servicing these products including direct charges for tickets, catering, merchandising and other costs. Premium seat costs of $1.3 million were incurred during 2015/16, reflecting a reduction in sales, as compared to $2.1 million in costs for the previous year.

MARKETINGEXPENSES

Marketing funds were allocated in 2015/16 by the Trust to promote and market the cricket and football seasons, the major events, available Platinum, Gold and SCG membership places, sale of private suites/corporate boxes, premium seating for major events, guided tours and corporate function room facilities.

Marketing expenditure during 2015/16, including advertising, promotion and publications, was $3.7 million compared to $3.2 million in the previous year.

ADMINISTRATIONANDRELATEDEXPENSES

Administrative and related expenses incurred during the past year included consulting fees ($1.3 million compared to $1.4 million in the previous year), communication expenses ($428,000 compared to $279,000), printing and stationery ($706,000 compared to $1 million), postage/freight ($155,000 compared to $189,000), insurance costs ($574,000 compared to $587,000) and accounting and legal fees ($402,000 compared to $144,000).

EMPLOYEEOPERATINGCOSTS

Employee operating costs (excluding wages) incurred during the past year were $14.3 million compared to $15.7 million in 2014/15. These costs include direct costs incurred in servicing event contracts.

DEPRECIATION

The completion and opening of the new Noble/Bradman Stand (together with recent additional capital works projects) has resulted in an increase to the annual depreciation charge for 2015/16 which was $13.1 million, compared to the previous year, $11.4 million.


FINANCECOSTS

Trust borrowings were reduced from $81.5 million to $79 million as at 29 February 2016. Interest paid on capital debt during 2015/16 was higher at $4.2 million, as compared to $3.8 million recorded in the previous year.

CONSULTANTS

Consultants were appointed for a range of projects in 2015/16, with payments totaling $1.284 million.

The major consultancies (above $50,000) were provided by:

» MI Associates: Masterplan & Project Management - $233,000

» PMY Consulting: Smart Stadium Solution/IPTV & WiFi Solution and Content/Strategy $224,000

» Ernst & Young: Financial Accounting/Audit Services - $168,000

» Bastion S&GO Pty Ltd (S&GO Pty Ltd): Stakeholder strategy - $149,000

» Turnkey Management Group: Tender Panel Assistance & Masterplan Works - $88,000

The balance of consultants fees incurred was paid by the Trust for minor consultancies for services provided. These included: IT services, masterplan design and planning, CRM planning, Trust website & app, social media planning and management, accounting services, ratings review, engineering services, turf inspection, acoustics, communications, catering service, planning advice, claims management, surveys, WHS, employment matters, building and other services.

The number of minor consultancies was 52 and the total was $422,000.

RISKMANAGEMENT,INSURANCEANDAUDIT/RISKCOMMITTEE

The Trust’s major insurance risks are covered through membership of the Treasury Managed Fund. Insurance premium costs in 2015/16 was $574,000.

The Trust insurance placement and coverage is reviewed annually by insurance Brokers, Arthur J Gallagher. The Trust monitors insurance claims experience on an ongoing basis with a focus on workplace health and safety performance. Risk management policies and procedures are regularly updated to enhance the Trust’s risk management profile in an effort to reduce future premiums.

The Trust has in place an internal audit and risk management framework overseen by the establishment of the Trust Audit and Risk Committee in accord with the Government’s Internal Audit and Risk Management Policy for the NSW Pubic Sector, issued by NSW Treasury in August 2009. The committee has prepared an Audit and Risk Committee Charter consistent with the content of the policy’s model charter and developed a high level enterprise risk management framework.

The Trust’s internal auditor, Ernst & Young, conducts annual audits as part of the Trust’s three-year internal audit plan.

DEBTMANAGEMENT

The Trust’s debt portfolio is managed by NSW Treasury Corporation (TCorp).

The continued slowing of the Australian economy saw RBA reduce cash rates by 0.25% to 2.00% and the 10-year Commonwealth

Government Bond yield fell by 0.06% to 2.40% by year end. Over the year, the Trust’s borrowings reduced from $81.5 million to $79 million, with the weighted average borrowing rate reducing to 4.33%.

CAPITALWORKS

During 2015/16 the Trust managed an extensive capital works program totalling $19.1 million (compared to $46.3 million in the previous year).

The major projects undertaken in 2015/16 included:

» Completion of Connected Stadium wi-fi/IPTV project at Allianz Stadium

» Installation of two large video screens at Allianz Stadium

» Allianz Stadium redevelopment design works

» Completion of MP1 car park entrance upgrade

» SCG irrigation lines & water storage project

» SCG Stage III Brewongle/Churchill Stand design works

» Carpet replacements in various areas at SCG

GOVERNMENTGRANTS

During 2015/16 the Trust received a NSW Government grant of $5.8 million towards completion of the concept design phase for development of the proposed National Football Stadium, to replace the existing Allianz Stadium.

SUMMARYOFLANDVESTEDINTHETRUST

The Trust was constituted under the Sydney Cricket and Sports Ground Act, 1978. It is charged with the care, control and management of the lands described in Schedule 2 of the Act, those lands dedicated for public recreation.

MAJORASSETS–PROPERTY,PLANT&EQUIPMENT

The Trust’s major assets, other than land holdings, consist of buildings and improvements at the SCG and Allianz Stadium and its surrounds.

The Trust revalues each class of property, plant and equipment at least every three years or with sufficient regularity to ensure that the carrying amount of each asset in the class does not differ materially from its fair value at reporting date. Interim formal revaluations are carried out in the years between the comprehensive revaluation.

During 2015/16, the Trust received an independent valuation by Knight Frank Valuations of its vested lands, based on an “as zoned and used basis,”

providing a valuation of $61.5 million as at 29 February 2016. The valuation increment recorded since the previous valuation of land, $18.5 million, was transferred to the Asset Revaluation Reserve.

During 2014/15 the Trust received an independent valuation by WT Partnership, registered quantity surveyors, of the replacement cost of buildings and improvements at the Sydney Cricket Ground and Allianz Stadium. The valuation at replacement cost was converted to written down replacement cost by the determination of the remaining useful life of each building. The valuation increment of $14.3 million recorded since the previous valuation of buildings and improvements was transferred to the Asset Revaluation Reserve as at 28 February 2015.

As a result of the revaluations, an Asset Revaluation Reserve remains established. The balance of this Reserve as at 29 February 2016 stood at $360.8M (28 February 2015: $342.3M).


Time for Payment of AccountsListed below is a schedule of accounts payable performance as at 29 February 2016, 30 November 2015, 31 August 2015 and 31 May 2015.

AGEDANALYSISATTHEENDOFEACHQUARTER

QUARTERCURRENT

$LESSTHAN30

$30-60

$60-90

$90+

$TOTAL

$

May 504,704 639,739 - 172,155 200,945 1,517,54333.26% 42.16% 0% 11.34% 13.24% 100%

August 1,662,413 1,177,918 - - - 2,840,33158.53% 41.47% 0% 0% 0% 100%

November 335,161 230,850 - - - 560,01159.21% 40.79% 0% 0% 0% 100%

February 3,304,484 14,680 - - - 3,319,16499.56% 0.44% 0% 0% 0% 100%

ACCOUNTSPAIDONTIMEWITHINEACHQUARTER

QUARTER TARGET% ACTUAL%TOTALACCOUNTS

PAIDONTIMETOTALACCOUNTS

PAID

May 90% 92.30% $32,657,399 $35,381,136August 90% 97.15% $20,220,020 $20,812,801November 90% 95.80% $13,749,022 $14,352,289February 90% 99.57% $32,481,074 $32,620,254

Our target is to pay 90% of accounts on time. Unavoidable delays in processing accounts occasionally arise due to delays in obtaining goods in proper order and condition, or queries on invoices. The Trust continues to encourage suppliers to accept electronic funds transfer as the preferred method of payment. No interest has been paid on payments on any accounts where delay in payment has occurred during the year. A minimal number of complaints were received during the year concerning late payment of invoices, with each matter being resolved satisfactorily.

INTERNALANDEXTERNALPERFORMANCEREVIEWS

Ratings Agency, Moody’s reported in December 2015 after conducting an annual review of the Trust’s financial operations and position as at 28 February 2015. The report by Moody’s recommended assignment of a financial rating of Ba2 (compared to Ba1 in the previous year) which was utilised by NSW Treasury in determining the amount of ratings based guarantee fees normally payable.

Moody’s acknowledged the assigned rating outlook is stable and primarily reflects the stability of revenue and cash flow generated from the Trust’s proven ability to attract quality sporting events and its strong competitive position with limited direct competition. The Trust’s rating is supported by its strong liquidity profile.

The key driver of the rating is the Trust’s proven ability to attract quality sporting events to its facilities and thus ensure that cash flows from memberships and catering sales provide a degree of revenue certainty. This ensures a key rating support, enabling the Trust to generate stable earnings and free cash flow.

The Trust’s business model ensures that its fixed operating costs are generally covered by revenue that is relatively predictable from year-to-year. This protects overall profitability, while allowing the Trust to cover interest payments, capital expenditures and debt reduction from match-day earnings.

Moody’s acknowledged that these strengths are tempered by the Trust’s need and willingness to partially debt-fund major capital projects. Leverage has increased over the last couple of years to support major capital works. This has caused leverage, as measured by Debt-to-EBITDA to rise to a level that is more appropriately positioned at the Ba2 rating level.

The Trust’s four main committees (Business, Finance, Development and Audit & Risk) are responsible for continuous internal performance review of Trust activities. Monthly management reports are submitted to these committees for assessment of operational performance.

The Trust’s internal auditor, Ernst & Young, conducts an annual audit program affirmed by the Audit & Risk Committee. In conducting the assigned audits, Ernst & Young seek to identify opportunities to further enhance the business and commercial efficiency and cost effectiveness of the Trust’s system of internal control.

The Trust also submits financial reports to the Treasury Commercial Sector Division for review of operating performance and financial position as compared to agreed Statement of Business Intent performance targets established annually.

CREDITCARDUSE

The use of credit cards issued to Trust executive staff is in accordance with Premier’s Memoranda and Treasurer’s Directions.

SYDNEYCRICKETCLUB

In 2007, the Trust joined with the administration of the former UTS-Balmain District Cricket Club in establishing the entity of the Sydney Cricket Club. The Sydney Cricket Club is an incorporated association under the Associations Incorporation Act 1984. The Trust and the club agreed to enter an association which would involve the provision by the Trust of administrative and other services to the club. The Trust is represented on the club’s board of directors in accord with the club constitution. Recoverable operational expenses incurred by the Trust during the past year were recouped from the Sydney Cricket Club through the club’s operational account.

COSTOFPRINTINGREPORTS

The Trust has prepared two annual reports for 2015/16 in hard copy as required for tabling in parliament, which were printed in-house with no external cost.

Sydney Cricket & Sports Ground Trust Annual Report 201644 45

14 July


HUMAN RESOURCESThe Human Resources department was converted to an independent division in the past financial year, with the existing manager promoted to General Manager in November 2015.

The purpose of this change was to ensure Human Resources was recognised as a fundamental part of the business strategy. Annual employee turnover for the reporting year was 4.2 per cent and whilst this figure indicates that the Trust is a great place to work, it also highlights the need to provide enhanced career opportunities.

For a third consecutive year all employees engaged in the Great Place to Work Survey with the Trust achieving an overall score of 69, an increase on the 2014 score of 67.

In total, 78 per cent of employees said the Trust was a great place to work, with 74 per cent of all employees completing the survey, compared to just 69 per cent in 2014.

Strengths including a pride in the organisation, a strong emotional connection to work life at the SCG and Allianz Stadium and a positive response to fair pay.

TrainingFurther e-learning modules were provided to staff throughout the reporting period:

» Sexual harassment in the workplace » Prevention of workplace bullying

WATERWORKSPROGRAM

In October 2015 63 employees participated in a team building program called Water Works. Employees worked in teams of five and were grouped with staff across all divisions of the Trust.

Participants built water filtration units for third world countries, with each system providing enough drinking water for an entire household or school. Employees were then able to track where their unit was sent and received photos of the recipients.

Each year, the Trust sources an initiative that encourages collaboration across different departments, with the goal of helping out those in need.

MENTALTOUGHNESSWORKSHOP

Senior and middle management teams at the Trust participated in a mental toughness workshop which measured individual results of control, commitment, challenge and confidence. The program was designed to test staff’s ability to adapt to innovation in a dynamic environment like the Moore Park precinct.

CASUALSTAFF

The Trust employ a large contingent of staff on a casual basis, who provide excellent customer service and safety standards for patrons, sports partners and hirers of our venues. Currently 70 per cent of staff are employed specifically for Customer Service roles and 30 per cent for Crowd Safety roles on event days. The staffing levels fluctuate according to estimated crowd attendance levels and peak for NRL finals season and during the summer of cricket.

Supervisors meetings and staff training sessions are conducted during the weekends and evenings to give opportunities to staff who attend the Trust as secondary employment. Areas of focus include: enhancing patron experience, emergency management, anti-terrorism, responsible service of alcohol, general venue knowledge and dealing with feedback. A reward and recognition program is also in place to acknowledge employees for outstanding customer service.

RECRUITMENT

The Trust welcomed a new General Manager of Facilities. This role is responsible for providing leadership in the development and implementation of business processes around asset management. Major areas include a turf management plan and the annual capital works program to ensure venues and facilities meet the needs of sports partners, Members and fans.

Disability Inclusion PlanThe Trust continues to develop its Disability Inclusion Plan to ensure people with disabilities can participate equally in activities at our grounds, as well as ensuring that we integrate objectives in business and event planning.

A Disability Advisory Committee meets quarterly and investigates options to enhance access and inclusion. For example, the Trust has made advancements to place seats at the glass behind the bowler’s arm for the international and domestic cricket season.

The Trust continues to employ two staff, in association with the Federal Government agency, Jobsupport. They perform specifically created jobs within the office and the Stadium Fitness Centre. The plan was prepared in accordance with the legal requirements of the Disability Inclusion Act 2014, and supports NSW Government guidelines.

Multicultural Policies and Service PlanThe Trust’s Multicultural Plan commenced on 1 March 2015, building on our commitment to respect and promote multicultural diversity in business planning and service delivery. The plan reflects the Trust’s values of heritage, integrity, relationships, passion, diversity; and our vision, to celebrate sport, create history, enhance entertainment and share the experience.

The strategy, which is in line with the Multicultural NSW Act 2000, reinforces the Trust’s commitment to providing quality services to Members, visitors and supporting staff through initiatives that reflect their diverse backgrounds.

The Human Resources department have produced a register of Event Day Staff who speak languages other than English. During events held at the ground the staff wear badges displaying the different languages that they speak to help visitors. The Multicultural Steering Committee has been appointed to achieve the objectives of the plan.


WORKFORCE PROFILE REPORT

WorkplacediversityachievementsThe Trust values social and cultural diversity and is committed to the principles of multiculturalism and disability action planning in all aspects of our work. The number of women employed is regularly reviewed as the Trust works towards the government target of 50 per cent. Likewise, we continue to monitor the number of people who are offered employment whose first language spoken as a child was not English. As part of our multicultural plan we have identified employees who are bilingual and issued them with appropriate name tags to help assist patrons who speak another language.

Trends in the Representation of Workforce Diversity Groups

Workforce Diversity Group Benchmark/Target 2013 2014 2015

Women 50% 37.5% 38.6% 35.5%

Aboriginal People and Torres Strait Islanders 2.6% 0.9% 3.0% 0.9%

People whose First Language Spoken as a Child was not English 19.0% 7.1% 8.0% 8.5%

People with a Disability N/A 1.8% 2.0% 0.9%

People with a Disability Requiring Work-Related Adjustment 1.5% 1.8% 2.0% 0.9%

Trends in the Distribution of Workforce Diversity Groups

Workforce Diversity Group Benchmark/Target 2013 2014 2015

Women 100 97 86 95

Aboriginal People and Torres Strait Islanders 100 N/A N/A N/A

People whose First Language Spoken as a Child was not English 100 N/A N/A N/A

People with a Disability 100 N/A N/A N/A

People with a Disability Requiring Work-Related Adjustment 100 N/A N/A N/A

Average Executive Remuneration

Band RangeAverage Remuneration

2016 $

2015 $

2014 $

Band 4 (Secretary) 441,201 - 509,750 600,951 586,294 570,688

Band 3 (Deputy Secretary) 313,051 - 441,200 0 0 0

Band 2 (Executive Director) 248,851 - 313,050 269,556 265,715 252,286

Band 1 (Director) 174,500 - 248,850 206,628 202,818 190,997

Breakdown of employees by department

2013 Feb 2014 Feb 2015 Feb 2016 Feb

FTE Emps FTE Emps FTE Emps FTE Emps

Executive Staff 7.00 7 7.00 7 7.00 7 8.00 8.00

Administration 3.34 4 3.36 4 3.38 4 2.34 3.00

Event & Operations 16.37 18 17.45 19 20.70 21 23.31 27.00

Business Development 0.00 0 0.00 0 0.00 0 0.00 0.00

Membership & Marketing 31.02 50 29.34 51 27.07 50.2 35.10 56.00

Commercial 7.00 7 6.00 6 7.00 7 5.00 5.00

Corporate Services 14.44 17 15.53 17 13.95 15.8 13.77 15.00

Strategy & Projects 0.00 0 0.00 0 3.00 3 0.00 0.00

Properties / Facilties 30.87 31 31.00 31 27.00 27 26.00 26.00

Media & Communications 0.00 0 0.00 0 1.00 1 2.00 2.00

Sydney Cricket Club 0.00 0 0.00 0 0.00 0 0.00 0.00

Human Resources 3.00 3.00

110.04 134 109.68 135 110.10 136 118.52 145.00

Breakdown of employees

FULL TIME = 86 87 88 94

PART TIME = 21.6 21 22.8 23

CASUALS = 26.4 27 25.2 28

TOTAL EMPS = 134 135 136 145

FTE = 110.04 FTE = 109.68 FTE = 110.10 FTE = 118.52

* FTE increased due to a busy event schedule and security requirements

Executive Remuneration

Band 2016 2015 2014

Female Male Female Male Female Male

Band 4 (Secretary) 0 1 0 1 0 1

Band 3 (Deputy Secretary) 0 0 0 0 0 0

Band 2 (Executive Director) 0 2 0 2 0 2

Band 1 (Director) 2 3 1 3 1 3

Totals 2 6 1 6 1 6

8 7 7

*Percentage of total employee-related expenditure was 13.4% for 2015/16 compared to 12.9% for 2014/15


Tony Shepherd AO – Chairman COMMITTEES:BUSINESS,DEVELOPMENTANDFINANCE

Bachelor of Commerce

Chairman: Macquarie Specialised Asset Management Ltd

Chairman: ASTRA

Chairman: Greater Western Sydney Giants AFL club

Director: Virgin Australia International Holdings

Director: Reardon Capital

Advisor: Lend Lease

Advisor: Bank of Tokyo-Mitsubishi UFJ

Former President: Business Council of Australia

Former Chairman: Transfield Services Limited

Former Chairman: National Commission of Audit

Former Chairman: WestConnex

Former Chairman: Sydney Motorway Corporation Pty Ltd

Appointed Trustee to 13 July 2017

Rod McGeoch AO LLB – Deputy Chairman, Chairman, Development Committee

COMMITTEES:BUSINESS,DEVELOPMENTANDFINANCE

Lawyer

Chairman: Mediaworks Investments Ltd

Chairman: Vantage Private Equity Growth Limited

Chairman: BGP Holdings Plc

Chairman: BGP Investments S.a.r.l.

Chairman: Advisory Board – American Infrastructure Holdings LLC

Director: Vantage Asset Management Pty Ltd

Director: Ramsay Health Care Ltd

Director: Maxwood Pty Ltd

Director: McGeoch Holdings Pty Ltd

Director: Destination NSW

Honorary Consul General of Luxembourg in Australia

Former Director: Sky City Entertainment Group Limited


TRUSTEE PROFILES John Hartigan – Chairman, Business CommitteeCOMMITTEES:BUSINESS&DEVELOPMENT

Journalist

Chairman: Destination NSW

Chairman: Prime Media Group

Director: Australian Paralympic Committee

Former Trustee: Anindilyakwa Mining Trust

Former Chairman: News Limited

Former CEO: News Limited

Former Board Member: NSW Export and Investment Advisory Board

Former Chairman and Director: Australian News Channel

Former Director: Foxtel

Former Director & Advisory Board Member: American Australian Association

Former Director: Bradman Foundation


Alan Jones AOCOMMITTEE:DEVELOPMENT

Graduate of Queensland and Oxford universities

Former speech writer and senior advisor to Prime Minister Malcolm Fraser

Queen’s Birthday Honour: Officer of the Order of Australia for the services to the media and sports administration

Former Australian rugby union coach

Former coach of the Balmain and South Sydney rugby league clubs

Elected to the Confederation of Australian Sports Hall of Fame - 1985

Broadcaster: Radio 2GB, Channel 7 Sunrise Program, Sky Channel Richo and Jones Program providing editorial comment and formerly with the Channel 9 Today Show presenting editorial comment daily for 20 years

Awarded Australian Radio Talk Personality of the Year 1990, 1991, 1992, 1993, 1995, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, and 2005

Awarded Australian Radio Best Current Affairs Commentator: 1991, 1992, 1993, 1995, 1996, 1997, 1998, 2000, 2001, 2002, 2003, 2004, and 2005

Advance Australia Award – Services to the Community 1993

Awarded the Inaugural Sir Roden Cutler Medal for Services to the Community - 2003

Deputy Chairman: NSW Institute of Sport

Former Deputy Chairman: Australian Sports Commission (1998-2008)



Stuart MacGillCOMMITTEE:BUSINESS

General Manager: Sales and Marketing OXYoptia

Former Australian Test cricket player

Wine, sport and media commentator


Steve Waugh AO COMMITTEES:DEVELOPMENTANDMUSEUM&ARCHIVESTASKFORCE

International businessman and philanthropist

Former Australian Test cricket captain

Inducted into the Australian Cricket Hall of Fame 2009

Inducted into the International Cricket Council Hall of Fame 2009

Founder & Chairman: Steve Waugh Foundation, Australia

Founder & Chairman: Steve Waugh Foundation, India

Queen’s Birthday Honour: Officer of the Order of Australia for services to cricket and charity 2003

Australian of the Year 2004

Australian Father of the Year 2005

Named one of Australia’s ‘National Living Treasures’ by the National Trust of Australia 2006

Member: Laureus World Sports Academy & Sports for Good Foundation, Global

Patron: Udayan (home for the rehabilitation for children affected by leprosy), Kolkata, India

Patron: Calcutta Girls Foundation, Kolkata, India


Maurice Newman AC – Chairman, Finance Committee; Chairman, Audit & Risk Management

COMMITTEES:FINANCEANDAUDIT&RISKMANAGEMENT

Chairman: Prime Minister’s Business Advisory CouncilChairman: Melon Pastoral Pty LtdChairman: Loan RQ LimitedChairman: NSW Chamber of Australia-India Trade (Ltd)Chairman: Bradman FoundationChairman: Taronga FoundationChairman: Australia Father’s Day CouncilSenior Corporate Advisor: MMC Group of CompaniesPatron: Committee for Economic Development of Australia (CEDA)Director: O’Connell Street Associates Pty LtdHonorary Chair: Macquarie University FoundationHonorary Professor: Public Diplomacy, SPARC, Macquarie University (Soft Power Advocacy & Research Centre- SPARC)Member: MARQ Services Advisory BoardFormer Chairman: Deutsche Bank Australia & New ZealandFormer Chairman: Deutsche Bank Asia Pacific Advisory BoardFormer Chairman: Australian Securities Exchange (ASX Limited)Former Chairman: Sydney Convention & Visitors BureauFormer Chairman: Tourism New South WalesFormer Chairman: Australian Broadcasting CorporationFormer Chairman: Sydney SixersFormer Chancellor: Macquarie UniversityFormer Director: Queensland Investment Corporation (QIC)Former Director: Tiger Airways Australia LimitedAppointed Trustee to 13 July 2019

Ron Graham AMCOMMITTEES:FINANCEANDAUDIT&RISKMANAGEMENT

Partner: Heidrick & Struggles Australia Pty Ltd

Director: Redcourt Consulting Pty Ltd

Director: Coast Distributors Pty Ltd

Director: Weary Dunlop Foundation Ltd

Former Chairman: Australian Rugby Union

Former President and Vice President: Australian Rugby Union

Former Chairman and President: NSW Rugby Union

Australian Wallaby (18 Tests 1973-78)



Nihal GuptaCOMMITTEES:AUDIT&RISKMANAGEMENT,BUSINESSANDFINANCE

Chairman: NSW Multicultural Business Advisory Panel

Deputy Chairman: Naisda Foundation Limited (Indigenous performing dance and arts)

Member: Asia Society Advisory Board of Australia

Director: Digital Electronics Corporation Australia Pty Ltd

Member: NSW Export and Investment Advisory Panel

Director: Parramasala Limited (International South Asian arts and cultural festival)

Former Chairman: Special Broadcasting Service (SBS)

Former Member: Judicial Commission of New South Wales


Lyn LarsenCOMMITTEE:BUSINESS

Honorary Member: Lord’s Taverners, Northern NSW

Member: Cricket NSW Hall of Fame

Member: NSW Hall of Champions

Member: Sports Australia Hall of Fame

Life Member: Cricket NSW

Former Captain of the NSW and Australian Women’s cricket team


Katie PageCOMMITTEE:BUSINESS

Chief Executive Officer: Harvey Norman Holdings Limited

Executive Director: Harvey Norman Holdings Limited

Director: Australian National Retailers Association

Director: Pertama Holdings Ltd (Singapore)

Director: Space Furniture Pte Ltd (Singapore)

Member: UWS Foundation Council

Former Member: NSW Public Service Commission Advisory Board

Former Director: Museum of Contemporary Art Limited


David GilbertCOMMITTEE:BUSINESS

President: Western Suburbs District Cricket Club

Patron: NSW Schools Cricket Association

Life Member and Former CEO: Cricket NSW

Vice President and Former CEO: Sussex County Cricket Club

Former Australian Cricketer

Former Director: Bradman Foundation

Former Director: Sydney Business Chamber


Phil WaughCOMMITTEES:FINANCEANDMUSEUM&ARCHIVESTASKFORCE

Head of Asset Finance: Commonwealth Bank – Business and Private Bank

Former Australian Wallaby Captain

Former NSW Waratahs Captain

Former Barbarians Captain

Participant: Sydney to Hobart Race (Line Honours 2011)

Masters of Commerce

Masters of International Business

Graduate Australian Institute of Company Directors


Richard Colless AMCOMMITTEE:DEVELOPMENT

Chairman: Moelis Australia Property Visa FundDirector: Simonds LimitedDirector: Advisory Board – Honans Insurance GroupFormer Chairman: Sydney Swans LimitedFormer Chairman: Carbine Club of NSWFormer Director: Events NSWFormer Director and Chairman: ING Management LimitedFormer Member: JP Morgan Australian Advisory BoardFormer Consultant: Mercantile MutualFormer CEO: Pacific Mutual Australia LimitedFormer Chairman: Inaugural AFL (NSW/ACT) CommissionFormer Chairman: West Coast Eagles (AFL)Life Member AFL (2006)Life Member Sydney Swans (2013)Appointed Trustee to 13 July 2017


Management organisational chart

TRUST

JAMIEBARKLEY

Chief Executive Officer

Audit & Risk Management Committee

BERNIELAMERTON

General Manager Corporate Services

JANECOLES

General Manager Membership & Marketing

GENERALMANAGER

Major Projects

JOHNNYNAOFAL

General Manager Facilities

JASONHILL

General Manager Commercial

PATRICKWILSON

General Manager Events & Operations

PHILLIPHEADS

General Manager Media, Communications & Government Relations

JACQUELINECUNNINGHAM

General Manager Human Resources

Finance

Membership

Master Plan

Venue & Asset Management

Corporate Hospitality

Sports Partner Relationships

Media

Workforce Services

Payroll Services

Stadium Fitness Centre

Design & Development

Grounds

Sponsorship

Venue Operations

Communications

Recruitment

Procurement

Marketing

Major Building Projects

Capital Works

Gold & Platinum Membership & Sales

Event Management

Public Relations

Remuneration & Benefits

Maintenance

Tenant Management

Commercial Rights & Contract Negotiation

WH&S and SecurityMuseum and Tours

Information & Communications Technology

Government Relations

Talent Management

Right to Information & Public Interest Disclosure

Finance Committee

Business Committee

Development Committee

TrusteeAttendanceFinanceCommitteeMeetings(4)

BusinessCommitteeMeetings(4)

DevelopmentCommitteeMeetings(6)

Audit&RiskManagementCommitteeMeetings(2)

TrustMeetings(9)

Tony Shepherd AO 2 2 6 9

Rod McGeoch AO LLB 2 4 4 7

Richard Colless AM 3 6

David Gilbert 4 9

Ron Graham AM 2 2 8

Nihal Gupta 3 4 2 8

John Hartigan 4 5 9

Alan Jones AO 4 5

Lyn Larsen 3 9

Stuart MacGill 4 8

Maurice Newman AC 4 2 8

Katie Page 3 1 7

Phil Waugh 3 7

Steve Waugh AO 4 6

Trust meetings

From 1 March 2015 to 29 February 2016, attendances by Trustees at the Finance Committee, Audit & Risk Management Committee, Business Committee, Development Committee and Trust meetings are set out below.

FinanceCommittee

BusinessCommittee

DevelopmentCommittee

Audit&RiskCommittee

Maurice Newman John Hartigan Rod McGeoch Maurice Newman

Tony Shepherd Tony Shepherd Tony Shepherd Ron Graham

Rod McGeoch Rod McGeoch Richard Colless Nihal Gupta

Ron Graham David Gilbert John Hartigan

Nihal Gupta Nihal Gupta Alan Jones

Phil Waugh Lyn Larsen Katie Page

Stuart MacGill Steve Waugh

Katie Page


CEO AND GENERAL MANAGER PROFILES

Jamie Barkley, Chief Executive Officer

Jamie Barkley became Chief Executive Officer of the Sydney Cricket & Sports Ground Trust in February 2001. He is responsible for the management and operation of the SCG and Allianz Stadium.

Jamie was Chief Operating Officer of the Trust from October 1999 and General Manager of the Sydney International Aquatic and Athletic Centres prior to that from 1994. He is a Director of the Bradman Foundation and the Sydney Cricket Club. He has a Bachelor of Arts and a Master of Business Administration from Royal Melbourne Institute of Technology and has over 30 years experience in sport and venue management.

Bernie Lamerton, General Manager – Corporate Services

Bernie Lamerton joined the Trust in 1984 after 12 years with the Audit Office of NSW. He was appointed as General Manager in 1994.

Bernie is qualified in accounting, having CPA status with the Australian Society of Certified Practising Accountants. He holds the dual role of Chief Financial Officer and Trust Secretary as nominated in the Trust Charter. He is responsible for preparation of the Trust’s statutory financial statements and is one of the longest serving employees.

Jason Hill, General Manager – Commercial

Jason Hill joined the Trust in October 2000 as Sales and Marketing Manager. Prior to this he held management roles at The Tattersalls Club, NSW Rugby Union and the St George Rugby League Club after beginning his career in sport and venue management at the South Sydney Rugby League Club in 1994.

Jason was appointed General Manager of Business Development in March 2005. This role evolved into his current position as General Manager of Commercial in 2011 following a restructure of Trust divisions. Jason assumed responsibility for corporate hospitality and Gold and Platinum membership sales, advertising signage, wi-fi & IPTV opportunities, sponsorship sales, commercial rights and sports partner agreements such as Cricket Australia, Cricket NSW, Sydney Sixers, Sydney Swans, Waratahs, Wallabies, Sydney Sevens, Sydney FC and Sydney Roosters. Jason has a Bachelor of Economics degree with Honours in Industrial Relations. He is a board member of the Venue Management Association (Asia and Pacific) Ltd.

Jane Coles, General Manager – Membership and Marketing

Jane Coles was appointed General Manager of Membership and Marketing in August 2011. She is responsible for the strategic direction and overall management of a large and diverse team including membership and customer services, marketing, the Stadium Fitness Centre, the SCG Museum, Heritage and Tour Experience, and Information and Communication Technology (ICT) departments.

Jane joined the Trust in December 1995 at the Sydney Olympic Park Aquatic and Athletic Centres and moved to the SCG and Allianz Stadium in February 2001. She has over 20 years experience in marketing, promotion, branding, membership, segmentation, strategy and key stakeholder management. In May 2014, Jane was appointed as the second female Director of the Sydney Cricket Club (SCG Cricket) assisting with the future direction and planning of the Club and the SCG XI membership group. In July 2015, Jane assumed responsibility for the broader ICT strategy across the precinct and the Trust’s new Connected Stadium Solution featuring a range of fan experience features. Jane’s qualifications include a Bachelor of Science in Kinesiology (Honours) and certificates in Marketing, Leadership and Event Management.


Patrick Wilson, General Manager – Events and Operations

Patrick Wilson joined the Trust in late 2011, after 24 years experience at senior management level in professional sports organisations and venues.

Patrick is responsible for event acquisition, event delivery, sports partner contracts and key venue supply agreements including catering services, ticketing and merchandise. Patrick holds qualifications in Leisure Studies and Sports Management from the University of Technology Sydney.

Phillip Heads, General Manager – Media, Communications and Government Relations

Phillip Heads started with the Trust in April 2014 after a two decade career in newspapers. Phillip was most recently the Director of Sport at News Corp NSW, during which he served as a sports editor and assistant editor of The Daily Telegraph and Sunday Telegraph.

Phillip has had a long association with the Trust, first as a fan and member and then as a sportswriter. One of his first jobs in journalism was to cover the Sydney Swans’ run to the 1996 AFL Grand Final.

Johnny Naofal, General Manager – Facilities

Johnny Naofal joined the Trust in February 2016 and has over 20 years experience as a Facilities and Operations Manager in the service/venue sector − most recently as Director of Building Services with the International Convention Centre Sydney and at the Sydney Exhibition Centre at Glebe Island where he was part of the pre-opening and executive team.

Skilled in the management of large mass gathering and multi-site venues, Johnny has a broad range of venue credentials including FM Operations and security/safety, project management, facilities management, operational management, traffic and logistics management, precinct interface management and FF&E Asset Management. He has formal qualifications in project management, security/risk management and in business management.

Jacqueline Cunningham, General Manager – Human Resources

Jacqueline Cunningham was appointed General Manager of Human Resources in November 2015. She is responsible for the implementation of strategic objectives, providing counsel and advice to senior stakeholders, developing strategic people plans and leading a team of staff to ensure service delivery enables and facilities the achievement of the Trust’s Human Resources strategic objectives.

Jacqueline joined the Trust in September 2008 as the Manager of Human Resources and is also responsible for Right to Information and Public Interest Disclosures. She has over 20 years expertise, complimented by appropriate tertiary qualifications in Human Resources disciplines including regional experience in South East Asia.


TRUST CHARTER AND CONSTITUTION

Charter: Sydney Cricket and Sports Ground Trust

Act, 1978 No. 72The Trust was constituted under this Act and is charged with the care, control and management of the scheduled lands dedicated for public recreation.

The Trust may allow the scheduled lands or any part thereof to be used by persons, clubs, associations, leagues or unions at such times and on such terms and conditions as the Trust may think fit and proper for cricket, football, athletics, public amusement or any other purpose which the Minister may approve.

The Trust may carry out works for the improvement, development and maintenance of the Trust lands including the redesigning of areas, the construction of any building or structure on the Trust lands, and the provision of stands and other accommodation for spectators frequenting the Trust lands.

Constitution of the TrustUnder Section 5(2), the Trust shall have and may exercise and perform the functions conferred or imposed on it by or under the Act, and shall in the exercise or performance of its functions, be subject to the control and direction of the Minister for Sport and Recreation.

The Trust consists of 15 members, 13 appointed by the Governor and two elected by Members. Each Trustee is appointed for a term of up to four years.

Performance Statement

JamieBarkley,ChiefExecutiveOfficerAnnual Salary: $577,142

The Chairman reported that the Chief Executive Officer performed to a high level during 2015-16.

The Chief Executive Officer’s major achievements during the year included:

» An operating profit of $2.4 million, exceeding budget of $1.8 million by 33 per cent ($1.8 million in 2015)

» Increased operating revenue of $86.5 million, exceeding budget of $84.5 million by 2.4 per cent ($83.6 million in 2015)

» Capital debt reduced from $81.5 million to $79 million » Maintained high retention of Platinum, Gold

and SCG Members with revenue of $19.1 million compared to $18 million in 2015

» Successful sporting events: international and domestic cricket including the New Year’s Test, one-day and T20 internationals, T20 Big Bash League (Sydney Sixers) and AFL (Sydney Swans) at the SCG and Super Rugby (NSW Waratahs), NRL (Sydney Roosters, St George Illawarra Dragons, South Sydney Rabbitohs) and A-League football (Sydney FC) at Allianz Stadium

» Successful major events including: ICC Cricket World Cup, Anzac Day Cup, Super Rugby semi-final, NRL Finals, inaugural World Rugby Sevens, Ed Sheeran concert

» Extension of agreement with Delaware North Companies (catering contractor) for a further term

» Long-term venue hire agreements with Australian Rugby Union (Wallabies Tests until 2031 & World Rugby Sevens until 2019), NSW Rugby/Waratahs Rugby (Super Rugby until 2031), Cricket Australia (international cricket until 2022/23), Sydney Sixers (until 2022/23)

» Finalised agreements with Australian Rugby Union and University of Technology Sydney for development of the Australian Rugby Development Centre on site

» Continued progress on the Trust’s Master Plan including future stages of the SCG redevelopment program, Allianz Stadium and the surrounding Moore Park precinct

» Reviewed and upgraded security operations in line with advice from NSW Police and the NSW and Federal Governments

The Chief Executive Officer managed a capital works program of $19.1 million, fully funded by the Trust, including:

» Completion of Connected Stadium Solution at Allianz Stadium, offering free wi-fi

» Installation of two high definition super screens at Allianz Stadium

» Resurfacing of Allianz Stadium field of play » Upgrade of retail catering outlets at

the SCG and Allianz Stadium » Upgrades to some private suites at Allianz

Stadium and new air conditioning in suites » SCG irrigation lines and water storage project » Upgrade of furniture and equipment at the

Stadium Fitness Centre and Azure cafe » Installation and unveiling of Arthur

Morris Gates at the SCG » Integration of University of Technology

Sydney teaching facilities in the precinct » Ongoing works and studies on the Trust

and Moore Park Master Plans

OverseasTravelChief Executive Officer

13 – 20 June 2015

» Barcelona: Stadium Business Summit » New York, San Francisco: Venue Inspections

Awards received at the Stadium Business Summit:

» 2015 Sports Event of the Year for Major League Baseball at the SCG

» 2015 Project of the Year for the MA Noble, Don Bradman & Dally Messenger stands at the SCG

4 – 20 February 2016

» San Francisco: Venue Inspections & Super Bowl 50 » Las Vegas, Kansas City, Miami & London:

Venue Inspections & Stadia Workshops


FINANCIAL INDICATORS

DEBTLEVELS

90

75

60

45

30

15

0 2011/12 2012/13 2013/14 2014/15 2015/16

REVENUE

550

500

450

400

350

300

250

200

150

100

50

0 2011/12 2012/13 2013/14 2014/15 2015/16 Total

66

531

143

133

96

92

MEMBERSHIPRENEWALS

20,000

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

02011/12 2012/13 2013/14 2014/15 2015/16

18,006 18,037 18,295 18,46917,715

OPERATINGSURPLUS

70

60

50

40

30

20

10

01.7

42.6

61.9

13.8 18.82.6

45.262.5

14.1 18.2

2011/12 2012/13 2013/14 2014/15 2015/16

EARNINGBEFOREINTEREST

70

60

50

40

30

20

10

05.5

4561.9

16.7 22.37.2

47.962.5

17.5 22

2011/12 2012/13 2013/14 2014/15 2015/16

Budget ActualKey


SYDNEY CRICKET & SPORTS GROUND TRUST

YEAR ENDED 29 FEBRUARY 2016

Statement by Members of the Trust Pursuant to Section 41C (1C) of the Public Finance and Audit Act, 1983, and in accordance with a resolution of the members of the Sydney Cricket & Sports Ground Trust, we declare on behalf of the Trust that in our opinion:

1. The accompanying financial statements exhibit a true and fair view of the financial position of the Sydney Cricket & Sports Ground Trust as at 29 February 2016 and transactions for the year then ended.

2. The statements have been prepared in accordance with the provisions of the Public Finance and Audit Act, 1983, the Public Finance and Audit Regulation, 2015, and the Treasurer’s Directions.

Further, we are not aware of any circumstances which would render any particulars included in the financial statements to be misleading or inaccurate.

MR MAURICE NEWMAN AC MR TONY SHEPHERD AO TRUSTEE/ CHAIRMAN TRUST CHAIRMAN AUDIT & RISK COMMITTEE 17 June 2016

BEGINNING OF AUDITED FINANCIAL STATEMENTSSYDNEYCRICKETANDSPORTSGROUNDTRUST

Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 29 February 2016

CONSOLIDATED PARENT

NOTES2016

$’0002015

$’0002016

$’0002015 $’000

REVENUE

Membership 2a 25,438 23,638 25,438 23,638Hire Fees 10,454 10,532 10,454 10,532Catering 2b 21,430 20,856 21,430 20,856Advertising and Sponsorship 2c 14,790 12,083 14,790 12,083Corporate Seating sales 2d 4,122 4,820 4,122 4,820Government Grant 2e 5,800 12,240 5,800 12,240Other Revenue 2f 10,253 11,713 10,253 11,713

TotalRevenue 92,287 95,882 92,287 95,882

EXPENDITURE

Operating Costs 3a 48,379 48,344 48,379 48,344Employee Related Expense 3b 18,405 18,281 2,586 2,534Personnel Services Expense 3b - - 16,111 15,923Depreciation 6 13,130 11,380 13,130 11,380Finance Costs 3c 4,168 3,825 4,168 3,825

TotalExpenditure 84,082 81,830 84,374 82,006

Gain/(Loss) on Disposal of Plant & Equipment 2g (5) 29 (5) 29

NETRESULT 8,200 14,081 7,908 13,905

OTHERCOMPREHENSIVEINCOME Items that will not be reclassified subsequently to profit or loss

Net increase/(decrease) in property, plant and equipment revaluation reserve 6 18,516 14,286 18,516 14,286

Actuarial gains/(losses) on defined benefit pension plans 9 (292) (176) - -

TotalOtherComprehensiveIncome 18,224 14,110 18,516 14,286

TOTALCOMPREHENSIVEINCOME 26,424 28,191 26,424 28,191

The accompanying notes form part of these financial statements.


SYDNEYCRICKETANDSPORTSGROUNDTRUST

Statement of Financial Position as at 29 February 2016

CONSOLIDATED PARENT

NOTES2016

$’0002015

$’0002016

$’0002015

$’000

ASSETS

CurrentAssets

Cash and Cash Equivalents 4 8,629 4,893 8,629 4,893Receivables 5 15,099 10,477 15,099 10,477Inventories 907 1,105 907 1,105

TotalCurrentAssets 24,635 16,475 24,635 16,475

Non-CurrentAssets

Property, Plant & Equipment 6 787,828 764,851 787,828 764,851Receivables 5 6,806 4,517 6,806 4,517

TotalNon-CurrentAssets 794,634 769,368 794,634 769,368

TotalAssets 819,269 785,843 819,269 785,843

LIABILITIES

Current LiabilitiesPayables 7a, 7c 14,469 9,062 13,319 8,405Other Liabilities 7b 18,279 17,780 18,279 17,780Borrowings 8 8,516 - 8,516 -Provisions 9 2,344 2,292 4,855 3,953

TotalCurrentLiabilities 43,608 29,134 44,969 30,138

Non-CurrentLiabilities

Payables 7a, 7c 7,268 2,028 7,268 2,028Other Liabilities 7b 3,070 5,084 3,070 5,084Borrowings 8 70,465 81,520 70,465 81,520Provisions 9 1,361 1,004 - -

TotalNon-CurrentLiabilities 82,164 89,636 80,803 88,632

TotalLiabilities 125,772 118,770 125,772 118,770

NetAssets 693,497 667,073 693,497 667,073

EQUITY

Reserves 360,828 342,312 360,828 342,312Accumulated Funds 332,669 324,761 332,669 324,761

TotalEquity 693,497 667,073 693,497 667,073



Statement of Changes in Equity for the Year Ended 29 February 2016

CONSOLIDATED PARENT

Notes

AccumulatedFunds$’000

AssetRevaluation

Reserve$’000

Total$’000


AssetRevaluation

Reserve$’000

Total$’000

BALANCEAT1MARCH2015 324,761 342,312 667,073 324,761 342,312 667,073

Surplus/(Deficit) for the Year 8,200 - 8,200 7,908 - 7,908

Net increase/(decrease) in property, plant and equipment revaluation reserve

6 - 18,516 18,516 - 18,516 18,516

Actuarial Gains/(Losses) on defined benefit pension plans 9 (292) - (292) - - -

TotalComprehensiveIncomefortheyear 7,908 18,516 26,424 7,908 18,516 26,424

Transactionswithownersintheircapacityasowners Increase/(decrease) in net assets from equity transfers

- - - - - -

BALANCEAT29FEBRUARY2016 332,669 360,828 693,497 332,669 360,828 693,497

CONSOLIDATED PARENT

Notes


AssetRevaluation

Reserve$’000

Total$’000


AssetRevaluation

Reserve$’000

Total$’000

BALANCEAT1MARCH2014 310,856 328,026 638,882 310,856 328,026 638,882

Surplus/(Deficit) for the Year 14,081 - 14,081 13,905 - 13,905Net increase/(decrease) in property, plant and equipment revaluation reserve

6 - 14,286 14,286 - 14,286 14,286

Actuarial Gains/(Losses) on defined benefit pension plans 9 (176) - (176) - - -

TotalComprehensiveIncomefortheyear 13,905 14,286 28,191 13,905 14,286 28,191

Transactionswithownersintheircapacityasowners Increase/(decrease) in net assets from equity transfers

- - - - - -

BALANCEAT28FEBRUARY2015 324,761 342,312 667,073 324,761 342,312 667,073




Statement of Cash Flows for the Year Ended 29 February 2016

CONSOLIDATED PARENT

NOTES 2016$’000

2015 $’000

2016$’000

2015 $’000

CASHFLOWSFROMOPERATINGACTIVITIES

Receipts

Receipts from Operations 86,443 89,129 86,443 89,129Government Grants 5,800 12,240 5.800 12,240Interest Received 142 224 142 224Other 882 4,199 882 4,199

TotalReceipts 93,267 105,792 93,267 105,792

Payments

Suppliers and Employees (61,399) (93,488) (61,399) (93,488)Interest Paid (4,304) (3,491) (4,304) (3,491)Other (2,770) (1,822) (2,770) (1,822)

TotalPayments (68,473) (98,801) (68,473) (98,801)

NETCASHFLOWSFROMOPERATINGACTIVITIES 14b 24,794 6,991 24,794 6,991

CASHFLOWSFROMINVESTINGACTIVITIES

Purchase of Property, Plant and Equipment (19,067) (34,073) (19,067) (34,073)

Proceeds from Sale of Plant and Equipment 173 150 173 150

NETCASHFLOWSFROMINVESTINGACTIVITIES (18,894) (33,923) (18,894) (33,923)

CASHFLOWSFROMFINANCINGACTIVITIES

Proceeds from Borrowings - 30,469 - 30,469Repayment of Borrowings (2,164) (3,895) (2,164) (3,895)

NETCASHFLOWSFROMFINANCINGACTIVITIES (2,164) 26,574 (2,164) 26,574

NetIncrease/(Decrease)inCashandCashEquivalents 3,736 (358) 3,736 (358)

Opening Cash and Cash Equivalents 4,893 5,251 4,893 5,251

CLOSINGCASHANDCASHEQUIVALENTS 14a 8,629 4,893 8,629 4,893


1.Summary of Significant Accounting Policies

a) Reporting EntityThe Trust is constituted under the provisions of the Sydney Cricket & Sports Ground Act, 1978. The activities of the Trust concentrate upon its primary role in the care, control and management of the Sydney Cricket Ground and Allianz Stadium which together are lands dedicated for public recreation. The Trust is domiciled in Australia and its principal office is at Moore Park Road, Paddington.

The Sydney Cricket & Sports Ground Trust, as a reporting entity, is a Public Trading Enterprise. The Trust is a not for profit entity (profit is not its principle objective). The reporting entity is consolidated as part of the NSW Total State Sector Accounts.

The Sydney Cricket & Sports Ground Trust Staff Agency (the Agency) is a Public Service Agency, established pursuant to schedule 1 of the Government Sector Employment Act 2013 (GSEA).

The Sydney Cricket and Sports Ground Trust Staff Agency was established on 24 February 2014 under the Government Sector Employment Act 2013 (GSEA) to provide personnel services to the Trust. The consolidated Financial Statements of the Trust include the activities of this Agency. The enactment of this legislation resulted in the assets and liabilities of the previous entity (the Sydney Cricket and Sports Ground Trust Division) being transferred to the new entity (the Sydney Cricket and Sports Ground Trust Staff Agency).

On 2 March 2016 the Government Sector Employment Legislation Amendment Act 2016 No 2 was issued. The Act made the following amendments relevant to the Trust:

» reference to the Trust was removed from the GSE Act 2013

» the Sydney Cricket and Sports Ground Trust Act 1978 No 72 was amended to allow the Trust to employ staff

These amendments remove the requirement for the Trust to comply with the requirements of the GSE Act 2013 and effectively abolish the Sydney Cricket and Sports Ground Trust Staff Agency from 1 January 2017.

In the process of preparing the consolidated financial statements for the Trust, consisting of the controlling and controlled entities, all inter-Trust transactions and balances have been eliminated.

These financial statements for the year ended 29 February 2016 have been authorised for issue by the Audit and Risk Committee on 15 June 2016.

b) Basis of Preparation The Trust’s financial statements are general-purpose financial statements, which have been prepared on an accruals basis and in accordance with:

» applicable Australian Accounting Standards (which include Australian Accounting Interpretations)

» other professional authoritative pronouncements of the Australian Accounting Standards Board.

» the requirements of the Public Finance and Audit Act 1983 and Public Finance and Audit Regulation 2015.

Selected non-current assets, financial assets and financial liabilities are measured at fair value. The other financial statement items are prepared in accordance with the historical cost convention.

Judgements, key assumptions and estimations management has made are disclosed in the relevant notes to the financial statements.

All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency.

c) Statement of ComplianceThe financial statements and notes comply with Australian Accounting Standards, which include Australian Accounting Interpretations.

d) Borrowing CostsBorrowing costs are recognised as expenses in the period in which they are incurred, in accordance with Treasury’s Mandate to not-for-profit general government sector entities.

e) InsuranceThe Trust’s insurance activities are conducted through the NSW Treasury Managed Fund Scheme of self-insurance for Government entities. The expense (premium) is determined by the Fund Manager based on past claims experience.


Notes to the Financial Statements for the Year Ended 29 February 2016


f) Accounting for the Goods and Services Tax (GST)

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

» amount of GST incurred by the Trust as a purchaser that is not recoverable from the Australian Taxation Office is recognised as part of an asset’s cost of acquisition or as part of an item of expense and

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

Cash flows are included in the Statement of Cash Flows on a gross basis. However, the GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the Australian Taxation Office are classified as operating cash flows.

g) Revenue Recognition

Revenue is measured at the fair value of the consideration or contribution received or receivable. Additional comments regarding the accounting policies for the recognition of income are discussed below.

(i)SaleofgoodsRevenue from the sale of goods is recognised as revenue when the Trust transfers the significant risks and rewards of ownership of the assets.

(ii)RenderingofservicesRevenue is recognised when the service is provided or by reference to the stage of completion (based on labour hours incurred to date).

(iii)InvestmentrevenueInterest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement. Rental revenue from operating leases is recognised in accordance with AASB 117 Leases on a straight-line basis over the lease term.

h) Grants RecognitionGrants are recognised as revenue when the Trust obtains control over the assets comprising the grant. Control is normally obtained upon the receipt of cash.

i) Assets

(i)AcquisitionsofassetsAssets acquired are initially recognised at cost. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the requirements of other Australian Accounting Standards.

Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value at the date of acquisition. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at measurement date.

(ii)CapitalisationthresholdsProperty, plant and equipment and intangible assets costing $5,000 and above individually (or forming part of a network costing more than $5,000) are capitalised. All items under $5,000 and above $2,000 which are considered at risk of theft are capitalised and recorded in the Trust’s assets register.

(iii)Revaluationofproperty,plantandequipmentPhysical non-current assets are valued in accordance with the ‘Valuation of Physical Non-Current Assets at Fair Value’ Policy and Guidelines Paper (TPP 14-01). This policy adopts fair value in accordance with AASB 13 Fair Value Measurement and AASB 116 Property, Plant and Equipment.

Property, plant and equipment is measured at the highest and best use by market participants that is physically possible, legally permissible and financially feasible. The highest and best use must be available at a period that is not remote and take into account the characteristics of the asset being measured, including any socio-political restrictions imposed by government. In most cases, after taking into account these considerations, the highest and best use is the existing use. In limited circumstances, the highest and best use may be a feasible alternative use, where there are no restrictions on use or where there is a feasible higher restricted alternative use.

Fair value of property, plant and equipment is based on a market participants’ perspective, using valuation techniques (market approach, cost approach, income approach) that maximise relevant observable inputs and minimise unobservable inputs. Also refer Note 6 for further information regarding fair value.

The Trust revalues each class of property, plant and equipment at least every three years or with sufficient regularity to ensure that the carrying amount of each asset in the class does not differ materially from its fair value at reporting date. Interim formal revaluations are

carried out in the years between the comprehensive revaluation. The last comprehensive revaluation of buildings was completed on 28 February 2015 and the last interim formal revaluation was completed on 29 February 2016, both based on an independent assessment. A full revaluation of land was completed on 29 February 2016 based on an independent assessment.

Non-specialised assets with short useful lives are measured at depreciated historical cost, as a surrogate for fair value. The Trust has assessed that any difference between fair value and depreciated historical cost is unlikely to be material

When revaluing non-current assets using the cost approach, the gross amount and the related accumulated depreciation are separately restated. For other assets valued using other valuation techniques, any balances of accumulated depreciation at the revaluation date in respect of those assets are credited to the asset accounts to which they relate. The net asset accounts are then increased or decreased by the revaluation increments or decrements.

Revaluation increments are credited directly to asset revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in the net result, the increment is recognised immediately as revenue in the net result.

Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation reserve.

As a not-for-profit entity, revaluation increments and decrements are offset against one another within a class of non-current assets, but not otherwise.

Where an asset that has previously been revalued is disposed of, any balance remaining in the asset revaluation reserve in respect of that asset is transferred to accumulated funds.

(iv)Impairmentofproperty,plantandequipmentAs a not-for-profit entity, impairment under AASB 136 Impairment of Assets is unlikely to arise. As property, plant and equipment is carried at fair value (or an amount that approximates fair value), impairment can only arise in the rare circumstances where the costs of disposal are material. Specifically, impairment is unlikely for not-for-profit entities given that AASB 136 modifies the recoverable amount test for non-cash generating assets of not-for-profit entities to the higher of fair value less costs of disposal and depreciated replacement cost, where depreciated replacement cost is also fair value

(v)Depreciationofproperty,plantandequipmentProperty, plant and equipment, other than land, are depreciated at rates based on their expected useful lives for the Trust, using the straight-line method.

All material identifiable components of assets are depreciated separately over their useful lives. Land is not a depreciable asset.

Depreciation rates of each class of depreciable assets are:

» Buildings and Improvements 1.1% - 20% » Plant and Equipment 5% - 33.3%

(vi)MaintenanceDay-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement of a part or component of an asset, in which case the costs are capitalised and depreciated.

(vii)LeasedassetsA distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of the leased assets, and operating leases under which the lessor does not transfer substantially all the risks and benefits.

Where a non-current asset is acquired by means of a finance lease, at the commencement of the lease term, the asset is recognised at its fair value or, if lower, the present value of the minimum lease payments, at the inception of the lease. The corresponding liability is established at the same amount. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are charged to the statement of comprehensive income in the periods in which they are incurred.

(viii)LoansandreceivablesLoans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. These financial assets are recognised initially at fair value, usually based on the transaction cost, or face value. Subsequent measurement is at amortised cost using the effective interest method, less an allowance for any impairment of receivables. Any changes are recognised in the net result for the year when impaired, derecognised or through the amortisation process.

Short-term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.


Notes to the Financial Statements for the Year Ended 29 February 2016SYDNEYCRICKETANDSPORTSGROUNDTRUST



(ix)InventoriesInventories are stated at the lower of cost and net realisable value. Cost is calculated using the weighted average cost or ‘first in first out’ method.

(x)InvestmentsInvestments are initially recognised at fair value plus, in the case of investments not at fair value through profit or loss, transaction costs. The Trust determines the classification of its financial assets after initial recognition and, when allowed and appropriate, re-evaluates this at each financial year end.

Fair value through profit or loss - The Trust subsequently measures investments classified as ‘held for trading’ or designated upon initial recognition ‘at fair value through profit or loss’ at fair value. Financial assets are classified as ‘held for trading’ if they are acquired for the purpose of selling in the near term. Gains or losses on these assets are recognised in the net result for the year.

The Hour-Glass Investment Facilities are designated at fair value through profit or loss using the second leg of the fair value option under AASB 139.9(b)(ii); i.e. these financial assets are managed and their performance is evaluated on a fair value basis, in accordance with a documented risk management strategy, and information about these assets is provided internally on that basis to the Trust’s key management personnel.

The movement in the fair value of the Hour-Glass Investment Facilities incorporates distributions received as well as unrealised movements in fair value and is reported in the line item ‘investment revenue’.

Purchases or sales of investments under contract that require delivery of the asset within the timeframe established by convention or regulation are recognised on the trade date; i.e. the date the Trust commits to purchase or sell the asset. The fair value of investments that are traded at fair value in an active market is determined by reference to quoted current bid prices at the close of business on the statement of financial position date.

(xi)ImpairmentoffinancialassetsAll financial assets, except those measured at fair value through profit and loss, are subject to an annual review for impairment. An allowance for impairment is established when there is objective evidence that the Trust will not be able to collect all amounts due.

For financial assets carried at amortised cost, the amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the impairment loss is recognised in the net result for the year.

Any reversals of impairment losses are reversed through the net result for the year, where there is objective evidence. Reversals of impairment losses of financial assets carried at amortised cost cannot result in a carrying amount that exceeds what the carrying amount would have been had there not been an impairment loss.

(xii)DerecognitionoffinancialassetsandfinancialliabilitiesA financial asset is derecognised when the contractual rights to the cash flows from the financial assets expire; or if the Trust transfers the financial asset:

» where substantially all the risks and rewards have been transferred or

» where the Trust has not transferred substantially all the risks and rewards, if the Trust has not retained control.

Where the Trust has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of the Trust’s continuing involvement in the asset.

A financial liability is derecognised when the obligation specified in the contract is discharged or cancelled or expires.

(xiii)OtherAssetsOther assets are recognised on a historic cost basis.

(j) Liabilities

(i)PayablesThese amounts represent liabilities for goods and services provided to the Trust and other amounts. Payables are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method. Short-term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.

(ii)BorrowingsLoans are not held for trading or designated at fair value through profit or loss and are recognised at amortised cost using the effective interest rate method. Gains or losses are recognised in the net result for the year on de-recognition.

The finance lease liability is determined in accordance with AASB 117 Leases.

(iii)Employeebenefitsandotherprovisions

Salaries and Wages, Annual Leave, Long Service Leave, Sick Leave:

Provision is made for annual leave and long service leave estimated to be payable to employees as at reporting date.

Unused non-vesting sick leave does not give rise to a liability, as it is not considered probable that sick leave taken in the future will be greater than the benefits accrued in the future. Benefits for Rostered Days Off (RDOs) have not been accrued, as the Trust policy is not to cash out these balances.

Benefits for long service leave and annual leave have been provided on the basis of emerging entitlements for recognised service for long service leave, and quantum due at reporting date for annual leave.

In accordance with Accounting Standard AASB 119 “Employee Benefits” liabilities arising in respect of salaries and wages, annual leave and other employee benefits expected to be settled within twelve months of the reporting date are measured at their nominal amounts based on remuneration rates which are expected to be paid when the liability is settled. The Trust has determined that the calculation of projecting and discounting annual leave to be immaterial and as such the liability is classified as a short-term liability in accordance with TC 15/09.

The liability arising in respect of annual leave is recognised and measured by applying the nominal value based on remuneration rates plus the annual leave-on-leave liability. The Trust has determined that the calculation of projecting and discounting annual leave to be immaterial and as such the liability is classified as a short-term liability in accordance with TC 15/09. All other employee benefit liabilities are measured at the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date. In determining the present value of future cash outflows, the market yield on national government bonds, which have terms to maturity approximating the terms of the related liability are used. The provisions for leave entitlements also include the relevant on-costs.

Superannuation:For defned contribution superannuation schemes, employer contributions are expensed when incurred. A liability is recognised only to the extent of unpaid employer contributions at reporting date.

As per Accounting Standard AASB 119 for defined benefit superannuation schemes, expenses are recognised based on the current service costs and net interest and expected return on fund assets now

recognised as other comprehensive income for the reporting period as calculated and advised by Pillar Administration. In accordance with NSW Treasury policy TC 14-05 Accounting for Superannuation and AASB 119 Employee Benefits, the consolidated entity recognises actuarial gains and losses and the actual return on fund assets for defined benefit superannuation schemes outside of the surplus/(deficit) in the ‘other comprehensive income’. The actuarial gains and losses for defined benefit superannuation schemes are expensed by the parent entity as part of their personnel service expenses. A net liability or asset is recognised based on the difference between the present value of the Trust’s defined benefit obligations and the fair value of fund assets as at the reporting date, as adjusted for unrecognised past service costs, unrecognised gains/(losses), and limitations on net assets. The net liability or asset is actuarially determined.

Consequentialcoststoemployment:Consequential costs to employment are recognised as liabilities and expenses where the employee benefits to which they relate have been recognised. This includes outstanding amounts of payroll tax, workers’ compensation insurance premiums and fringe benefits tax.

(k) Fair Value HierarchyA number of the Trust’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. When measuring fair value, the valuation technique used maximises the use of relevant observable inputs and minimises the use of unobservable inputs. Under AASB 13, the Trust categorises, for disclosure purposes, the valuation techniques based on the inputs used in the valuation techniques as follows:

» Level1 - quoted prices in active markets for identical assets / liabilities that the Trust can access at the measurement date.

» Level2 – inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.

» Level3 – inputs that are not based on observable market data (unobservable inputs).

The Trust recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

Refer Note 13 for further disclosures regarding fair value measurements of financial and non-financial assets.





(l) Equity And Reserves

(i)AssetrevaluationreserveThe asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets. This accords with the Trust’s policy on the revaluation of property, plant and equipment as discussed in note 1(i)(iii).

(ii)AccumulatedfundsThe category ‘Accumulated Funds’ includes all current and prior period retained funds.

(m) Comparative InformationPrior to 29 February 2016 work in progress was disclosed separately in Note 6: Property Plant and Equipment. At 29 February 2016 work in progress has been disclosed as part of assets at fair value in accordance with the Financial Reporting Code. This change was made retrospectively.

All other comparative information is presented in respect of the previous period for all amounts reported in the financial statements.

(n) Changes in Accounting Policy, Including New or Revised Australian Accounting StandardsThe accounting policies applied in 2015-16 are consistent with those of the previous financial year.

At reporting date a number of accounting standards adopted by the AASB had been issued but are not yet effective. At present New South Wales Treasury is mandating not to early adopt any of the new Standards/Interpretations as per Treasury Circular TC 16-02.

The following new Standards/Interpretations have not been early adopted by the Trust and are not yet effective.

» AASB 9 and AASB 2014-7 regarding financial instruments

» AASB 15, AASB 2014-5 and AASB 2015-8 regarding Revenue from Contracts with Customers

» AASB 1057 and AASB 2015-9 Application of Australian Accounting Standards

» AASB 2014-4 regarding acceptable methods of depreciation and amortisation

» AASB 2015-1 regarding annual improvements to Australian Accounting Standards 2012-2014 cycle

» AASB 2015-2 regarding amendments to AASB 101 (disclosure initiative)

» AASB 2015-6 Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities

» AASB 2015-7 Amendments to Australian Accounting Standards – Fair Value Disclosures of Not-for-Profit Public Sector Entities

It is considered that the implementation of these Standards will not have any material impact on the Trust’s financial results.

(o) Sydney Cricket Club

In 2007 the Trust joined with the administration of the former UTS-Balmain District Cricket Club in establishing the new entity of the Sydney Cricket Club (the Club). The Club is an Incorporated Association under the Associations Incorporation Act 1984. The Trust and the Club have an association which involves the provision by the Trust of administrative and other services to the Club. The Trust is represented on the Club’s Board of Directors in accord with the Club Constitution. The Club is not considered to be controlled by the Trust. Any expenses that were incurred during the past year through payroll, operational expenditure and management time have been recouped from the Sydney Cricket Club through the Club’s operational account. The Trust has established a Bank Deposit Account as security against the overdraft facility of the Sydney Cricket Club.

(p) Tax Status

The activities of the Sydney Cricket and Sports Ground Trust are exempt from the provisions of the Income Tax Assessment Act and other Federal Government taxation legislation, with the exception of the requirement to pay fringe benefits tax and GST. The Trust also pays payroll tax.

(q) Debt Management StrategyThe NSW Treasury Corporation actively manages the Trust’s portfolio of debt. The Corporation has provided the Trust the facility whereby maturing loans may be rolled over and replaced with new loans whilst maintaining the original capital value of the portfolio. Borrowings and Advances are shown as current and non-current liabilities and include the provision for rollover upon maturity. Borrowing costs are recognised as expenses in the period in which they are incurred.

2. RevenueCONSOLIDATED PARENT

2016$’000

2015 $’000

2016$’000

2015 $’000

(a) Membership

Membership Annual Subscriptions 19,125 18,045 19,125 18,045SCG Member Entrance Fees 586 655 586 655Platinum/Gold Member Entrance Fees 5,727 4,938 5,727 4,938

25,438 23,638 25,438 23,638

(b) CateringIncome received from liquor and food trading for events, functions and non-event days is detailed as follows:

Liquor Sales 16,676 16,039 16,676 16,039Food Sales Commission 4,007 4,317 4,007 4,317Contract Premium Amortisation 747 500 747 500

21,430 20,856 21,430 20,856

LIQUORTRADING

The Trust operates through a managing agent for liquor trading in the public, members and corporate areas of the Sydney Cricket Ground and Allianz Stadium. Income from liquor trading represents gross liquor sales at the Sydney Cricket Ground and Allianz Stadium.

FOODTRADING

Income from food trading comprises a share of gross food sales at the Sydney Cricket Ground and Allianz Stadium received by the Trust, together with amortisation of contract premiums received as a licence fee paid in advance under the previous and new catering contract. The Trust’s new current catering contract which commenced on 1 November 2015 is due to expire on 31 October 2020. The total premium received under the contract is being amortised annually over the term of the contract.

(c) Advertising and Sponsorship

ADVERTISING&SPONSORSHIP 14,790 12,083 14,790 12,083

Income includes payments under contract with various companies for naming rights, exclusive product rights, sponsorship and advertisements that are displayed on fences, grandstands and video scoreboards at the Sydney Cricket Ground and Allianz Stadium.





CONSOLIDATED PARENT

2016$’000

2015 $’000

2016$’000

2015 $’000

(d) Corporate Seating Sales

Premium Seating 310 369 310 369Private/Corporate Boxes 3,812 4,451 3,812 4,451

4,122 4,820 4,122 4,820

Income includes hire/rental of corporate facilities sold on an annual basis and corporate seating sold on a daily and seasonal basis providing dining/viewing for major and other events at the Sydney Cricket Ground and Allianz Stadium.

(e) Government Grants

NSWGOVERNMENTGRANT 5,800 12,240 5,800 12,240

In 2015/16 the Trust received a grant of $5.8M from the NSW Government to undertake a concept design process for the future National Football Stadium project.

(f) Other Revenue

Merchandising 792 520 792 520Ticketing 1,028 1,454 1,028 1,454Parking Fees 2,183 2,586 2,183 2,586Interest Received 142 224 142 224Rental Income 3,832 3,669 3,832 3,669Contributions 1,428 2,179 1,428 2,179Insurance Recoveries 35 40 35 40Sundry 813 1,041 813 1,041

10,253 11,713 10,253 11,713

(g) Gain / (Loss) on Disposal of Plant & Equipment

Proceeds from Disposal 173 150 173 150Written down value of assets disposed (178) (121) (178) (121)

Gain/(Loss)ondisposalofPlant&Equipment (5) 29 (5) 29

3. ExpenditureCONSOLIDATED PARENT

2016$’000

2015 $’000

2016$’000

2015 $’000

(a) Operating Costs

Event Operating Costs 14,329 15,706 14,329 15,706Ground Operation & Maintenance 11,931 11,405 11,931 11,405Liquor Cost of Goods Sold 5,029 4,945 5,029 4,945Liquor Management Fee 5,477 5,096 5,477 5,096Corporate Seating Expenses 1,296 2,134 1,296 2,134Marketing Expenses 3,746 3,173 3,746 3,173Advertising & Sponsorship 2,569 1,912 2,569 1,912Audit Fees (Audit Office of NSW) 115 97 115 97Accounting and Legal Services 402 144 402 144Consultant Fees 1,285 1,384 1,285 1,384Architects Fees 83 30 83 30Travel 173 135 173 135Postage/Freight 155 189 155 189Communication Expenses 428 279 428 279Printing and Stationery 706 1,040 706 1,040Bad Debts Written off 81 66 81 66Insurance 574 587 574 587Members Seating - 22 - 22

48,379 48,344 48,379 48,344

The Audit Office of NSW’s fee for auditing the annual financial statements for the year ended 29 February 2016 is $115,000 ($97,200 in 2015).

(b) Employee Related Expense

Salaries and Wages 14,165 14,253 1,624 1,864Trustees Remuneration 211 143 211 143Annual Leave and Long Service Leave 1,198 1,114 - -Superannuation 1,301 1,361 292 176Workers Compensation 166 287 - -Payroll Tax 786 759 - -Other Staff Related Expenses 578 364 459 351

18,405 18,281 2,586 2,534

Personnel Services - - 16,111 15,923

18,405 18,281 18,697 18,457





CONSOLIDATED PARENT

2016$’000

2015 $’000

2016$’000

2015 $’000

(c) Finance Costs

Interest on Loans 3,887 3,575 3,887 3,575Other Finance Charges 281 250 281 250

4,168 3,825 4,168 3,825

4. Cash and Cash EquivalentsFor the purpose of the Statement of Cash Flows, cash and cash equivalents include cash at bank, cash on hand, short-term deposits and bank overdraft. Cash and cash equivalent assets recognised in the Statement of Financial Position are reconciled at the end of the financial year to the Statement of Cash Flows as follows:

Cash 8,625 1,299 8,625 1,299NSW Treasury Corporation Hour-Glass 4 3,594 4 3,594

CashandcashequivalentsperStatementofFinancialPosition 8,629 4,893 8,629 4,893

CashandcashequivalentsperStatementofCashFlows 8,629 4,893 8,629 4,893

The fair value measurement hierarchy for NSW Treasury Corporation Hour-Glass facility is Level 2. Refer Note 13 for details regarding credit risk, liquidity risk and market risk arising from financial instruments

5. ReceivablesCONSOLIDATED PARENT

2016$’000

2015 $’000

2016$’000

2015 $’000

CURRENT:

Prepayments 2,934 522 2,934 522Accrued Income 2,050 2,483 2,050 2,483Catering Debtors 3,136 1,133 3,136 1,133Sundry Debtors 6,679 5,871 6,679 5,871Finance Lease Receivable 300 300 300 300GST Receivable - 168 - 168

15,099 10,477 15,099 10,477

NON-CURRENT:

Finance Lease Receivable 4,494 4,514 4,494 4,514Prepayments 2,312 3 2,312 3

6,806 4,517 6,806 4,517

MOVEMENTINTHEALLOWANCEFORIMPAIRMENT

Balance at 1 March 66 - 66 -Amounts written off during the year (31) - (31) -Amounts received during the year (35) - (35) -Increase/(decrease) in allowance recognised in surplus or deficit 128 66 128 66

Balanceatreportingdate 128 66 128 66

FINANCELEASERECEIVABLE

2016$’000

Gross Investment

2016$’000

Present Value

2015 $’000

Gross Investment

2015 $’000

Present Value

< 1 year 300 300 300 300> 1 year < 5 years 1,200 1,035 1,200 1,035> 5 years 11,943 3,459 12,243 3,479

13,443 4,794 13,743 4,814

The finance lease relates to a 50 year licence granted by the Trust to a hirer to construct and occupy premises on Trust land. Unearned finance income at 29 February 2016 stood at $8.7M (28 February 2015: $9.0M). Contingent rentals relating to CPI adjustment of $40,768 were collected during 2016 ($35,054 in 2015). Details regarding credit risk, liquidity risk and market risk, including financial assets that are either past due or impaired, are disclosed in Note 13.





6. Property, Plant and EquipmentCONSOLIDATED PARENT

2016$’000

2015 $’000

2016$’000

2015 $’000

Land at Valuation 61,519 43,003 61,519 43,003Buildings and Improvements (at fair value) 884,508 867,965 884,508 867,965Accumulated Depreciation (171,579) (159,514) (171,579) (159,514)

712,929 708,451 712,929 708,451

Plant and Equipment (at fair value) 27,459 28,958 27,459 28,958Accumulated Depreciation (14,079) (15,561) (14,079) (15,561)

13,380 13,397 13,380 13,397

TotalCarryingAmount 787,828 764,851 787,828 764,851

The Trust’s current Industrial Special Risks insurance policy as at 29 February 2016 provides a cover on buildings, plant & equipment to the value of $1.1M ($988M in 2015).

RECONCILIATIONS

2016LAND$’000

BUILDINGS$’000

PLANTANDEQUIPMENT

$’000TOTAL$’000

Carrying amount as at 1 March 2015 43,003 708,451 13,397 764,851Net Revaluation Increment 18,516 - - 18,516Additions - 16,557 1,212 17,769Reclassification - (456) 456 -Disposals - - (178) (178)Depreciation Expense - (11,623) (1,507) (13,130)

Carryingamountasat29February2016 61,519 712,929 13,380 787,828

2015

Carrying amount as at 1 March 2014 43,003 666,866 6,122 715,991Net Revaluation Increment - 14,286 - 14,286Additions - 37,451 8,636 46,087Reclassification - (12) - (12)Disposals - - (121) (121)Depreciation Expense - (10,140) (1,240) (11,380)

Carryingamountasat28February2015 43,003 708,451 13,397 764,851

VALUATIONOFLAND,BUILDINGSANDIMPROVEMENTS

(a) Fair Value Hierarchy

2016LEVEL 1

$’000LEVEL 2

$’000LEVEL 3

$’000

TOTAL FAIR VALUE

$’000

PropertyLand - - 61,519 61,519Buildings - - 712,929 712,929

- - 774,448 774,448

2015LEVEL 1

$’000LEVEL 2

$’000LEVEL 3

$’000

TOTAL FAIR VALUE

$’000

PropertyLand - - 43,003 43,003Buildings - - 708,451 708,451

- - 751,454 751,454

(b) Valuation Techniques, Inputs and Processes

Valuation techniques used are as follows:

Land – level 3

Land is valued using observable valuation input (market evidence) available to provide a reasonable guide to the value of the land. Valuers have also relied on market evidence of similar assets such as open space, industrial and commercial sales with adjustment for size, condition, location, comparability, zoning to determine its fair values.

During 2015/16, the Trust received an independent valuation by Knight Frank Valuations of its vested lands, based on an “as zoned and used basis,” providing a valuation of $61.5M as at 29 February 2016. The valuation increment recorded since the previous valuation of land, $18.5M, was transferred to the Asset Revaluation Reserve.

Building – level 3

Buildings are mostly specialised buildings with unobservable input hierarchy due to lack of market evidence. Depreciated replacement cost (DRC) was used to value the assets. When DRC is used, they are classified as level 3 input.

During 2014/15 the Trust received an independent valuation by WT Partnership, registered quantity surveyors, of the replacement cost of buildings and improvements at the Sydney Cricket Ground and Allianz Stadium. The valuation at replacement cost was converted to written down replacement cost by the determination of the remaining useful life of each building. The valuation increment of $14.3M recorded since the previous valuation of buildings and improvements was transferred to the Asset Revaluation Reserve as at 28 February 2015.

As a result of the revaluations, an Asset Revaluation Reserve remains established. The balance of this Reserve as at 29 February 2016 stood at $360.8M (28 February 2015: $342.3M).

Level 3 – measurement additional disclosure

Due to its uniqueness, specialised nature of building assets, valuers have applied a cost approach using depreciated replacement cost method. These assets do not generally have an active market to determine their fair values. With lack of market evidence, there is not significant changes to unobservable inputs which would allow its classification to change from level 3 to level 1 or 2.





(c) Reconciliation of Recurring Level 3 Fair Value Measurements (Land and Buildings)

2016 LEVEL3

LAND $’000

BUILDINGS $’000

TOTAL RECURRING LEVEL 3

FAIR VALUE $’000

Fair Value as at 1 March 2015 43,003 708,451 751,454Additions/Reclassifications - 16,101 16,101Revaluation Increments/decrements recognised in other comprehensive income – including in the line item/’Net increase/(decrease) in property, plant and equipment revaluation reserve’

18,516 - 18,516

Depreciation - (11,623) (11,623)

FairValueasat29February2016 61,519 712,929 774,448

2015 LEVEL3

LAND $’000

BUILDINGS $’000

TOTAL RECURRING LEVEL 3

FAIR VALUE $’000

Fair Value as at 1 March 2014 43,003 666,866 709,869Additions/Reclassifications - 37,439 37,439Revaluation Increments/decrements recognised in other comprehensive income – including in the line item/’Net increase/(decrease) in property, plant and equipment revaluation reserve’

- 14,286 14,286

Depreciation - (10,140) (10,140)

FairValueasat28February2015 43,003 708,451 751,454

7.

CONSOLIDATED PARENT

2016$’000

2015 $’000

2016$’000

2015 $’000

(a) PayablesCURRENT:

Sundry Creditors 6,857 3,131 6,857 3,131Accruals 4,014 4,250 2,864 3,593Finance Lease Payable 2,381 466 2,381 466GST Payable 45 - 45 -Interest Payable 1,172 1,215 1,172 1,215

14,469 9,062 13,319 8,405

NON-CURRENT:

Finance Lease Payable 7,268 2,028 7,268 2,028

7,268 2,028 7,268 2,028

Details regarding credit risk, liquidity risk and market risk, including a maturity analysis of the above payables are disclosed in Note 13.

(b) Other LiabilitiesCURRENT:

Subscriptions Paid in Advance 11,192 10,373 11,192 10,373Rents Paid in Advance 1,318 1,204 1,318 1,204Advertising – Fees in Advance 2,137 2,299 2,137 2,299Catering – Licence Fees in Advance 400 467 400 467Other Deferred Income 3,232 3,437 3,232 3,437

18,279 17,780 18,279 17,780

NON-CURRENT:

Catering – Licence Fees in Advance 1,467 1,867 1,467 1,867Other Deferred Income 1,603 3,217 1,603 3,217

3,070 5,084 3,070 5,084





8. Borrowings

CONSOLIDATED PARENT

2016$’000

2015 $’000

2016$’000

2015 $’000

CURRENT:

NSW Treasury Corporation Loans 8,516 - 8,516 -

8,516 - 8,516 -

NON-CURRENT:

NSW Treasury Corporation Loans 70,465 81,520 70,465 81,520

70,465 81,520 70,465 81,520

Total 78,981 81,520 78,981 81,520

SIGNIFICANTTERMS&CONDITIONS:NSW Treasury Corporation (Bullet) Loans are based upon instalment payments of interest only and repayment or rollover of principal at maturity. All borrowings are secured by Government Guarantee. Details regarding credit risk, liquidity risk and market risk, including a maturity analysis of the above borrowings are disclosed in Note 13.”

9. ProvisionsCONSOLIDATED PARENT

(a) Employee Entitlements 2016$’000

2015 $’000

2016$’000

2015 $’000

CURRENT:

Provision for Annual Leave and on-costs 1,076 1,092 - -Provision for Long Service Leave and on-costs 1,268 1,200 - -

2,344 2,292 - -

NON-CURRENT:

Provision for Long Service Leave and on-costs 321 263 - -

Defined superannuation liability 1,040 741 - -

1,361 1,004 - -

3,705 3,296 - -

The Trust expects to settle the annual leave entitlements within the next twelve months. The amount of long service leave expected to be taken in the next twelve months is immaterial.

(b) Personnel ServicesCURRENT

Personnel services in respect of employee entitlements of the Division - - 4,855 3,953

The aggregate employee benefit liability Recognised and included in the financial statements is as follows Accrued salaries, wages and on-costs

1,150 657 - -

Provision for employee benefits (current) 2,344 2,292 - -Provision for employee benefits (non-current) 321 263 - -

Defined benefit liability (non-current) 1,040 741 - -

4,855 3,953 - -





(c) Superannuation – Defined Benefits PlanThe Trust has a $1,040,082 ($740,651 in 2015) net liability for the employer’s obligation to defined benefit superannuation schemes at the Trust.

The funding position at 29 February 2016 in respect of the two defined benefits schemes related to personnel services received, namely the State Authorities Superannuation Scheme (SASS) and the State Authorities Non-Contributory Superannuation Scheme (SANCS) has been advised by Pillar Administration:

FUND ESTIMATEDRESERVEACCOUNTSFUNDS

ACCRUEDLIABILITY

NETLIABILITYATYEAREND

2016$’000

2015 $’000

2016$’000

2015 $’000

2016$’000

2015 $’000

SASS 2,170 2,142 3,042 2,726 872 584SANCS 105 95 273 252 168 157

2,275 2,237 3,315 2,978 1,040 741

Accountingpolicyforrecognisingactuarialgains/lossesActuarial gains and losses are recognised immediately in other comprehensive income in the year in which they occur.

FundinformationThe Pooled Fund holds in trust the investments of the closed NSW public sector superannuation schemes including: the State Authorities Superannuation Scheme (SASS) and the State Authorities Non-contributory Superannuation Scheme (SANCS).

These schemes are defined benefit schemes – at least a component of the final benefit is derived from a multiple of member salary and years of membership. The Schemes are closed to new members.

Description of the regulatory frameworkThe schemes in the Pooled Fund are established and governed by the following NSW legislation, State Authorities Superannuation Act 1987, State Authorities Non-Contributory Superannuation Scheme Act 1987, and their associated regulations.

The schemes in the Pooled Fund are exempt public sector superannuation schemes under the Commonwealth Superannuation Industry (Supervision) Act 1993 (SIS). The SIS Legislation treats exempt public sector superannuation funds as complying funds for concessional taxation and superannuation guarantee purposes.

Under a Heads of Government agreement, the New South Wales Government undertakes to ensure that the Pooled Fund will conform with the principles of the Commonwealth’s retirement incomes policy relating to preservation, vesting and reporting to members and that members’ benefits are adequately protected.

The New South Wales Government prudentially monitors and audits the Pooled Fund and the Trustee Board activities in a manner consistent with the prudential controls of the SIS legislation. These provisions are in addition to other legislative obligations on the Trustee Board and internal processes that monitor the Trustee Board’s adherence to the principles of the Commonwealth’s retirement incomes policy.

An actuarial investigation of the Pooled Fund is performed every three years. The last actuarial investigation was performed as at 30 June 2015.

Description of other entities’ responsibilities for the governance of the fund

The Fund’s Trustee is responsible for the governance of the Fund. The Trustee has a legal obligation to act solely in the best interests of fund beneficiaries. The Trustee has the following roles:

» Administration of the fund and payment to the beneficiaries from fund assets when required in accordance with the fund rules

» Management and investment of the fund assets » Compliance with other applicable regulations

Description of risksThere are a number of risks to which the Fund exposes the Employer. The more significant risks relating to the defined benefits are:

Investment risk - The risk that investment returns will be lower than assumed and the Employer will need to increase contributions to offset this shortfall

Longevity risk – The risk that pensioners live longer than assumed, increasing future pensions

Pension indexation risk – The risk that pensions will increase at a rate greater than assumed, increasing future pensions

Salary growth risk - The risk that wages or salaries

(on which future benefit amounts for active members will be based) will rise more rapidly than assumed, increasing defined benefit amounts and thereby requiring additional employer contributions

Legislative risk - The risk is that legislative changes could be made which increase the cost of providing the defined benefits

The defined benefit fund assets are invested with independent fund managers and have a diversified asset mix. The Fund has no significant concentration of investment risk or liquidity risk.

Description of Significant EventsThere were no fund amendments, curtailments or settlements during the period.

Reconciliationofthenetdefinedbenefitobligation2016:

SASS2016

$’000

SANCS2016

$’000

Net Defined Benefit Liability/(Asset) at start of year 584 157Current service cost 30 9Net Interest on the net defined benefit liability/(asset) 14 4Past service cost 0 0(Gains)/losses arising from settlements 0 0Actual return on Fund assets less Interest income 94 4Actuarial (gains)/losses arising from changes in demographic assumptions 230 (2)Actuarial (gains)/losses arising from changes in financial assumptions 21 2Actuarial (gains)/losses arising from liability experience (63) 6Adjustment for effect of asset ceiling 0 0Employer contributions (38) (12)Effects of transfers in/out due to business combinations and disposals 0 0

NetDefinedBenefitLiability/(Asset)atendofyear 872 168





SASS2016

$’000

SANCS2016

$’000

Reconciliationofthefairvalueoffundassets:

Fair value of Fund assets at beginning of the period 2,142 95Interest income 50 2Actual return on Fund assets less Interest income (94) (4)Employer contributions 38 12Contributions by participants 26 0Benefits paid 2 0Taxes, premiums & expenses paid 6 0Transfers in 0 0Contributions to accumulation section 0 0Settlements 0 0Exchange rate changes 0 0

FairvalueofFundassetsatendoftheperiod 2,170 105

Reconciliationofthepresentvalueofthedefinedbenefitobligation2016:

Present value of defined benefit obligations at beginning of the year after contribution tax assumption change 2,726 253

Current service cost 29 9Interest cost 64 6Contributions by participants 26 0Actuarial (gains)/losses arising from changes in demographic assumptions 229 (2)Actuarial (gains)/losses arising from changes in financial assumptions 21 2Actuarial (gains)/losses arising from liability experience (63) 6Benefits paid 3 0Taxes, premiums & expenses paid 7 (1)Transfers in 0 0Contributions to accumulation section 0 0Past service cost 0 0Settlements 0 0Exchange rate changes 0 0

Presentvalueofdefinedbenefitobligationsatendoftheperiod 3,042 273

ReconciliationoftheeffectoftheAssetCeiling:

Adjustment for effect of asset ceiling at beginning of the period 0 0Change in the effect of asset ceiling 0 0

Adjustmentforeffectofassetceilingatendoftheperiod 0 0

ExpenserecognisedintheProfitorLoss:

Current service cost 30 9Net interest 14 4Past service cost 0 0(Gains)/Loss on settlement 0 0

Expense/(income)recognised 44 13

AmountsrecognisedinOthercomprehensiveincome:

Actuarial (gains) losses on liabilities 187 6Actual return on Fund assets less Interest income 95 4Adjustment for effect of asset ceiling 0 0

Totalre-measurementinOtherComprehensiveIncome 282 10

FairValueofFundAssetsAll Pooled Fund assets are invested by STC at arm’s length through independent fund managers. Assets are not separately invested for each entity and it is not possible or appropriate to disaggregate and attribute plan assets to individual entities. As such, the disclosures below relate to total assets of the Pooled Fund.

Derivatives, including futures and options, can be used by investment managers. However, each manager’s investment mandate clearly states that derivatives may only be used to facilitate efficient cash flow management or to hedge the portfolio against market movements and cannot be used for speculative purposes or gearing of the portfolio. As such managers make limited use of derivatives.





Asat30November2015(mostrecentavailable)

AssetcategoryTotal

(A$’000)

Quotedpricesinactivemarketsforidentical

assetsLevel1(A$’000)

Significantobservable

inputsLevel2(A$’000)

UnobservableinputsLevel3

(A$’000)

Short Term Securities 2,978,555 2,943,012 35,542 -Australian Fixed Interest 2,650,946 27,895 2,623,051 -

International Fixed Interest 828,608 (75) 828,683 -

Australian Equities 9,512,077 9,057,851 446,022 8,204International Equities 12,451,509 9,268,278 2,180,440 1,002,792 Property 3,438,598 1,036,559 701,343 1,700,696 Alternatives 7,790,660 557,505 3,108,946 4,124,209

Total 39,650,953 22,891,025 9,924,027 6,835,901

Thepercentageinvestedineachassetclassatthereportingdateis:

As at 30-Nov-15Short Term Securities 7.5%Australian Fixed Interest 6.7%International Fixed Interest 2.1%Australian Equities 24.0%International Equities 31.4%Property 8.7%Alternatives 19.6%

Total 100.0%

Level 1 – quoted prices in active markets for identical assets or liabilities. The assets in these levels are listed shares; listed unit trusts.

Level 2 – inputs other than quoted prices observable for the asset or liability, either directly or indirectly. The assets in this level are cash; notes; government, semi-government and corporate bonds; unlisted trusts containing where quoted prices are available in active markets for identical assets or liabilities.

Level 3 – inputs for the asset or liability that are not based on observable market data. The assets in this level are unlisted property; unlisted shares; unlisted infrastructure; distressed debt; hedge funds.

Derivatives, including futures and options, can be used by investment managers. However, each manager’s investment mandate clearly states that derivatives may only be used to facilitate efficient cash flow management or to hedge the portfolio against market movements and cannot be used for speculative purposes or gearing of the investment portfolio. As such managers make limited use of derivatives. The fair value of the Pooled Fund Assets as at 30 November 2015 include $179.0M in the NSW government bonds.

VALUATIONMETHODANDPRINCIPALACTUARIALASSUMPTIONSATTHEBALANCEDATE:

(a)SignificantActuarialAssumptionsatreportingdate: 29FEB2016

Salary increase rate (excluding promotional increases)

2.5% 2015/2016 to 2018/2019; 3.50% 2019/2020 and 2020/2021;

3.00% pa 2021/2022 to 2025/2026; 3.50% pa thereafter

Rate of CPI increase 2.25% 2015/2016; 2.75% 2016/2017; 2.50% pa thereafter

Expected rate of return on assets 7.8%

Discount rate 2.41% pa

Pensioner mortality The pensioner mortality assumptions are as per the 2015 Actuarial Investigation of the Pooled Fund

MaturityprofileofdefinedbenefitobligationThe weighted average duration of the defined benefit obligation is 12 years.

SensitivityAnalysisThe entity’s total defined benefit obligation as at 29 February 2016 under several scenarios is presented below.

Scenarios A to F relate to sensitivity of the total defined benefit obligation to economic assumptions, and scenarios G and H relate to sensitivity to demographic assumptions.

Base CaseScenario A

-1.0% discount rateScenario B

+1.0% discount rate

Discount rate 2.41% 1.41% 3.41%Rate of CPI increase as above as above as aboveSalary inflation rate as above as above as above

Definedbenefitobligation(A$) 3,315,442 3,687,006 3,009,339

Base Case

Scenario C +0.5% rate of CPI increase

Scenario D -0.5% rate of CPI increase

Discount rate as above as above as aboveRate of CPI increase as above above rates plus 0.5% pa above rates less 0.5% paSalary inflation rate as above as above as above






Base Case

Scenario E +0.5% salary increase rate

Scenario F -0.5% salary increase rate

Discount rate as above as above as aboveRate of CPI increase as above as above as aboveSalary inflation rate as above above rates plus 0.5% pa above rates less 0.5% pa


Base Case

Scenario G +5% pensioner mortality rates

Scenario H -5% pensioner mortality rates


The defined benefit obligation has been calculated by changing the assumptions as outline above, whilst retaining all other assumptions.

Expectedcontributions:

SASS2016

$’000

SANCS2016

$’000

Expected employer contributions to be paid in the next accounting period 38 12

Fundingarrangementsforemployercontributions:Funding arrangements are reviewed every three years following the release of the triennial actuarial review and was last reviewed following completion of the triennial review as at 30 June 2015. Contribution rates are set after discussions between the employer, STC and NSW Treasury.

Funding positions are reviewed annually and funding arrangements are adjusted as required after each annual review.

(a)Surplus/deficitThe following is a summary of the 29 February 2016 financial position of the fund calculated in accordance with AAS 25 ‘Financial Reporting by Superannuation Plans’:

SASS2016

$’000

SANCS2016

$’000

Accrued benefits 2,048 204Net market value of Fund assets (2,170) (105)

Net(surplus)/deficit (122) 99

(b)ContributionrecommendationsRecommended contribution rates for the entity are:

SASS Multiple of member

contributions

SANCS % member

salary

0.00 0.00

(c)Asset-Liabilitymatchingstrategies

We are not aware of any asset and liability matching strategies currently adopted by the Plan.

(d)EconomicassumptionsThe economic assumptions adopted from the 2015 triennial actuarial review of the fund are:

WeightedAverageAssumptions

Expected rate of return on fund assets backing current pension liabilities 7.8% pa

Expected rate of return on fund assets backing other liabilities 6.8% paExpected salary increase rate 3.0% to 30 June 2019, then 3.5% pa thereafter

ExpectedrateofCPIincrease 2.5% pa

Natureofasset/liabilityIf a surplus existed in the employer’s interest in the fund, the employer may be able to take advantage of it in the form of a reduction in the required contribution rate, depending on the advice of the Fund’s actuary.

Where a deficiency exists, the employer is responsible for any difference between the employer’s share of Fund assets and the defined benefit obligation.


SASS2015

$’000

SANCS2015

$’000

Net Defined Benefit Liability/(Asset) at beginning of the period before contribution tax assumption change 312 120

Adjustment due to contribution tax assumption change 47 18 Net Defined Benefit Liability/(Asset) at beginning of the period 359 138Current service cost 85 13Net Interest on the net defined benefit liability/(asset) 14 5Past service cost 0 0(Gains)/losses arising from settlements 0 0Actual return on Fund assets less Interest income (112) (8)Actuarial (gains)/losses arising from changes in demographic assumptions 0 0Actuarial (gains)/losses arising from changes in financial assumptions 371 30Actuarial (gains)/losses arising from liability experience (95) (9)Adjustment for effect of asset ceiling 0 0Employer contributions (38) (12)

NetDefinedBenefitLiability/(Asset)atendoftheperiod 584 157





Reconciliationofthefairvalueoffundassets:SASS2015

$’000

SANCS2015

$’000

Fair value of Fund assets at beginning of the period 2,250 161Interest income 87 6Actual return on Fund assets less Interest income 112 7Employer contributions 38 12Contributions by participants 36 0Benefits paid (413) (92)Taxes, premiums & expenses paid 32 1Transfers in 0 0Contributions to accumulation section 0 0Settlements 0 0Exchange rate changes 0 0



Present value of defined benefit obligations at beginning of the year before contribution tax assumption change 2,562 281

Adjustment due to contribution tax assumption change 47 18Present value of defined benefit obligations at beginning of the year after contribution tax assumption change 2,609 299

Current service cost 85 13Interest cost 100 12Contributions by participants 37 0Actuarial (gains)/losses arising from changes in demographic assumptions 0 0Actuarial (gains)/losses arising from changes in financial assumptions 371 29Actuarial (gains)/losses arising from liability experience (95) (9)Benefits paid (413) (92)Taxes, premiums & expenses paid 32 1Transfers in 0 0Contributions to accumulation section 0 0Past service cost 0 0Settlements 0 0Exchange rate changes 0 0



SASS2015

$’000

SANCS2015

$’000







Actuarial (gains) losses on liabilities 276 20Actual return on Fund assets less Interest income (112) (8)Adjustment for effect of asset ceiling 0 0

Totalre-measurementinOtherComprehensiveIncome (164) (12)

FairValueofFundAssets

All Pooled Fund assets are invested by STC at arm’s length through independent fund managers. Assets are not separately invested for each entity and it is not possible or appropriate to disaggregate and attribute plan assets to individual entities. As such, the disclosures below relate to total assets of the Pooled Fund.







Assetcategory Total(A$’000)

Quotedpricesinactivemarketsfor

identicalassetsLevel1(A$’000)



Unobservableinputs

Level3(A$’000)

Short Term Securities 2,800,451 60,035 2,740,416 - Australian Fixed Interest 2,602,827 9,345 2,576,847 16,635 International Fixed Interest 935,087 (315) 935,402 -

Australian Equities 10,448,731 9,989,280 454,401 5,050 International Equities 11,841,044 8,954,886 2,885,762 396 Property 3,413,800 970,865 759,838 1,683,097 Alternatives 6,733,061 607,195 3,136,335 2,989,531

Total 38,775,001 20,591,291 13,489,001 4,694,709


ASAT 30-NOV-14

Short Term Securities 7.2%Australian Fixed Interest 6.7%International Fixed Interest 2.5%Australian Equities 26.9%International Equities 30.5%Property 8.8%Alternatives 17.4%

Total 100.0%

Level 1 - quoted prices in active markets for identical assets or liabilities. The assets in these levels are listed shares; listed unit trusts.

Level 2 - inputs other than quoted prices observable for the asset or liability, either directly or indirectly. The assets in this level are cash; notes; government, semi-government and corporate bonds; unlisted trusts containing where quoted prices are available in active markets for identical assets or liabilities.

Level 3 - inputs for the asset or liability that are not based on observable market data. The assets in this level are unlisted property; unlisted shares; unlisted infrastructure; distressed debt; hedge funds.


Valuationmethodandprincipalactuarialassumptionsatthebalancedate:



2.5% 2014/2015; 2.50% 2015/2016 to 2018/2019; 3.50% 2019/2020 and 2020/2021;


Rate of CPI increase 2.5%



Pensioner mortality As per the 2012 Actuarial Investigation of the Pooled Fund

Maturityprofileofdefinedbenefitobligation

The weighted average duration of the defined benefit obligation is 11.3 years.



Base CaseScenario A


+1.0% discount rate



Base Case



Discount rate as above as above as aboveRate of CPI increase 2.5% 3.0% 2.0%Salary inflation rate as above as above as above


Base Case



Discount rate as above as above as aboveRate of CPI increase as above as above as above

Salary inflation rate as above above rates plus 0.5% pa

above rates less 0.5% pa






Base Case






SASS2015

$’000

SANCS2015

$’000





SASS2015

$’000

SANCS2015

$’000




SASSMULTIPLE

OFMEMBERCONTRIBUTIONS

SANCS%MEMBER

SALARY

0.00 0.00

(c)Asset-LiabilitymatchingstrategiesWe are not aware of any asset and liability matching strategies currently adopted by the Plan.



Expected rate of return on fund assets backing current pension liabilities 8.3% paExpected rate of return on fund assets backing other liabilities 7.3% paExpected salary increase rate 2.7% pa to 30 June 2018, then 4%




10. Capital And Other Expenditure Commitments

CapitalCommitments:The Trust does not have any capital commitments at 29 February 2016 (2015 – nil).

FinanceLeaseCommitments:Future non-cancellable finance lease not provided for and payable:

PrincipalCommitments

- Not later than 1 year 2,381 466 2,381 466- Later than 1 year but not later than 5 years 7,268 2,028 7,268 2,028

- Later than 5 years - - - -

Total(includingGST) 9,649 2,494 9,649 2,494

Futurenon-cancellablefinanceleaserentalspayable:- Not later than 1 year 2,646 553 2,646 553- Later than 1 year but not later than 5 years 7,606 2,157 7,606 2,157

- Later than 5 years - - - -

Total(includingGST) 10,252 2,710 10,252 2,710

OperatingLeaseCommitments:Future non-cancellable operating lease rentals not provided for and payable:

- Not later than 1 year 236 315 236 315- Later than 1 year but not later than 5 years - 236 - 236

Total(includingGST) 236 551 236 551

The total operating leases contracted at 29 February 2016 but not provided for in the financial statements.

Non-CashCommitments:The Trust receives contributions of goods and services from certain sponsors. In return, the Trust provides advertising space and/or use of Trust facilities. The Trust does not consider the value of facilities and advertising space provided in 2016 to be material (2015 – nil).





11. Trustees RemunerationThe Trust is classified as an Advisory Board thereby enabling the payment of fees to Trust members.

Fees totalling $210,583 ($143,000 in 2015) were paid to the Trustees in accordance with rates determined by the Department of Premier and Cabinet.

The Trustees have access to the Trust Suite during major event days at the Sydney Cricket Ground and Allianz Stadium. On occasion expenses for travel by rustees on Trust business are reimbursed by the Trust. There are no other benefits paid to the Trustees.

12. Contingent Liabilities and Contingent Assets

Contingent LiabilitiesThe Trust is not aware of any significant or material contingent liability in existence at balance date or which has emerged subsequent to balance date which would materially impact on the financial position of the Trust as shown in the Financial Statements.

In 2007 the Trust joined with the administration of the former UTS-Balmain District Cricket Club in establishing the new entity of the Sydney Cricket

Club. The Trust has established a Bank Deposit Account holding $40,000 as security against the overdraft facility of the Sydney Cricket Club.

Contingent AssetsThe Trust is not aware of any significant or material contingent asset in existence at balance date or which has emerged subsequent to balance date which would materially impact on the financial position of the Trust as shown in the financial statements.

13. Financial Instruments DisclosuresThe Trust’s main risks arising from financial instruments are outlined below, together with the Trust’s objectives, policies and processes for measuring and managing risk. Further quantitative and qualitative disclosures are included throughout this financial report.

The Trust has responsibility for the establishment and oversight of risk management and reviews and agrees policies for managing each of these risks. Risk management policies are established to identify and analyse the risks faced by the Trust, to set risk limits and controls and to monitor risks. Compliance with policies is reviewed by the Audit Committee and Internal Audit on a continuous basis.

The Trust’s principal financial instruments comprise receivables, payables, cash, short-term deposits and fixed rate debts. The Trust manages its exposure to key financial risks, including interest rate in accordance with the Trust’s financial risk management policy.

The main risks arising from the Trust’s financial instruments are interest rate risk, credit risk and liquidity risk. The Trust uses different methods to measure and manage different types of risks. These methods include ageing analysis and monitoring of specific credit allowances which are undertaken to manage credit risk.

The Trust reviews and agrees policies for managing each of the risks identified below, including the interest rate risk and credit allowances.

(a) Financial Instrument Categories

CONSOLIDATED PARENT

CLASS NOTES CATEGORY 2016$’000

2015 $’000

2016$’000

2015 $’000

FinancialAssetsCash and Cash Equivalents 4 N/A 8,629 4,893 8,629 4,893

Receivables (1) 5 Loans and Receivables (at amortised cost) 17,409 13,791 17,409 13,791

Total 26,038 18,684 26,038 18,684

FinancialLiabilities

Payables (2) 7(a) Financial Liabilities (at amortised cost) 21,692 11,090 20,542 10,433

Borrowings 8 Financial Liabilities (at amortised cost) 78,981 81,520 78,981 81,520

Total 100,673 92,610 99,524 91,953

Notes1. Excludes statutory receivables and prepayments (i.e. not within scope of AASB 7).

2. Excludes statutory payables and unearned revenue (i.e. not within scope of AASB 7).

(b) Market RiskMarket risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Trust’s exposures to market risk are primarily through price risks associated with the movement in interest rate risk on the Trust’s borrowings and other price risks associated with the movement in the unit price of the Hour Glass Investment Facilities. The Trust has no exposure to foreign currency risk and does not enter into commodity contracts.

The effect on profit and equity due to a reasonably possible change in risk variable is outlined in the information below, for interest rate risk and other price risk. A reasonably possible change in risk variable has been determined after taking into account the economic environment in which the Trust operates and the time frame for the assessment (i.e. until the end of the next annual reporting period). The sensitivity analysis is based on risk exposures in existence at the Statement of Financial Position date. The analysis is performed on the same basis as for 2015. The analysis assumes that all other variables remain constant.

Interest Rate RiskThe Trust’s exposure to market interest rates relates primarily to the Trust’s long term debt obligations and cash and cash equivalents.

CashandCashEquivalentsA reasonably possible change of +/- 0.25% is used, consistent with current trends in interest rates. The basis will be reviewed annually and amended where there is a structural change in the level of interest rate volatility. The Trust’s exposure to interest rate risk is set out below.





CONSOLIDATED $‘000 -0.25% 0.25%

CARRYINGAMOUNT PROFIT EQUITY PROFIT EQUITY

2016FinancialAssetsCash and Cash Equivalents 8,625 (21.6) (21.6) 21.6 21.6

2015FinancialAssets

Cash and Cash Equivalents 1,299 (3.2) (3.2) 3.2 3.2

PARENT $‘000 -0.25% 0.25%

CARRYINGAMOUNT PROFIT EQUITY PROFIT EQUITY



ManagedDebtPortfolioThe Trust’s policy is to manage its finance costs using a mix of fixed and variable rate debt.

At 29 February 2016 100% of the Trust’s borrowings were at a fixed rate of interest (2015: 100%).

To manage this mix in a cost-efficient manner the Trust contracts with the NSW Treasury Corporation (TCorp) to actively manage the Trust’s portfolio of debt. The Corporation has provided the Trust the facility whereby maturing loans may be rolled over and replaced with new loans whilst maintaining the original capital value of the portfolio.

TCorp manages interest rate risk exposures applicable to specific borrowings of the Trust in accordance with a debt portfolio mandate agreed between the two parties.

TCorp receives a fee for this service, which may include a performance component where TCorp is able to add value by achieving a reduction in the Trust‘s debt costs against an agreed benchmark. TCorp may use derivatives, primarily interest rate futures, to establish short-term (tactical) positions within agreed tolerance limits to manage portfolio duration and maturity profiles.

The following sensitivity analysis is based on the interest rate risk exposures in existence at the Statement of Financial Position date:

At 29 February 2016, if interest rates had moved, as illustrated in the table below, with all other variables held constant, TCorp have estimated that post tax surplus and equity would have been affected as follows:

OPERATINGRESULTIMPACT

EQUITYIMPACT

2016$’000

2015 $’000

2016$’000

2015 $’000

Consolidated Increase/DecreaseinbasispointsAUD 100 (1%) 3,352 4,060 3,352 4,060

Other Price Risks

Hour-GlassInvestmentFacilitiesExposure to ‘other price risk’ primarily arises through the investment in the TCorp Hour-Glass Investment facilities, which are held for strategic rather than trading purposes. The Trust has no direct equity investments. The Trust holds units in the following Hour-Glass investment trust:

FACILITY INVESTMENTSECTORS INVESTMENTHORIZON 2016$000

2015 $000

Cash Facility Cash, Money market instruments Up to 1.5 years 4 3,594

The unit price is equal to the total fair value of the net assets held by the facility divided by the total number of units on issue. Unit prices are calculated and published daily.

NSW Treasury Corporation (TCorp) as trustee for the above facility is required to act in the best interest of the unit holders and to administer the trusts in accordance with the trust deeds. As trustee, TCorp has appointed external managers to manage the performance and risks of each facility in accordance with a mandate agreed by the parties. From April 2007 TCorp commenced acting as a manager for part of the Cash Facility. A significant portion of the administration of the facility is outsourced to an external custodian.

Investments in the Hour-Glass facilities limits the Trust’s exposure to risk, as it allows diversification across a pool of funds with different investment horizons and a mix of investments.

The TCorp Hour-Glass Investment Facilities are designated at fair value through profit/loss and therefore any change in unit price impacts directly on net result (rather than equity).

TCorp provides sensitivity analysis for the Hour-Glass Investment Facilities using historically based volatility information collected over a 10 year period.

CHANGEINUNITPRICE IMPACTONSURPLUS/DEFICIT

2016$000

2015 $000

Hour-Glass Cash Facility +/- 1% - 36

A reasonably possible change is based on the percentage change in unit price multiplied by the redemption value as at 29 February 2016.





(c) Credit Risk(i.) Credit risk arises from the financial assets

of the Trust, which comprise cash and cash equivalents, trade and other receivables. The Trust’s exposure to credit risk arises from potential default of the counter party, with a maximum exposure equal to the carrying amount.

(ii.) The Trust trades only with recognised, creditworthy third parties, and as such collateral is not requested nor is it the Trust’s policy to securitise its trade and other receivables. There are no trade and other receivable that are past due or impaired whose terms have been renegotiated.

(iii.) All financial assets are unsecured.

(iv.) TCorp/NSW State does not guarantee investments in the Hour-glass, TCorp acts as Trustee of the Hour-Glass.

The Trust invest in units in the Hour-Glass Cash Facility (HGCF). The HGCF invest in financial instruments with a high quality credit rating - with an average short credit rating of A1+ and long term rating of AA- , most of the investments would be with the big 4 banks.

(v.) All trade debtors are recognised as amounts receivable at balance date. Collectability of trade debtors is reviewed on an ongoing basis. Procedures as established are followed to recover outstanding amounts, including letters of demand. Debts which are known to be uncollectible are written off. An allowance for impairment is raised when there is objective evidence that the Trust will not be able to collect all amounts due. This evidence includes past experience, and current and expected changes in economic conditions and debtor credit ratings. No interest is earned on trade debtors.

The Trust is not materially exposed to concentrations of credit risk to a single trade debtor or group of debtors.

(vi.) Receivable balances are monitored on an ongoing basis with Trust’s exposure to bad debts not being significant.

(vii.) Receivables which are past due but not considered impaired are aged as follows:

0-30DAYSOVERDUE

$’000

31-60DAYSOVERDUE

$’000

61-90DAYSOVERDUE

$’000

90+DAYSOVERDUE

$’000

Asat29February2016 865 847 40 2,322As at 28 February 2015 2,293 183 36 1,159

Each column in the table reports gross receivables.

The ageing analysis excludes statutory receivables, as these are not within the scope of AASB 7 and excludes receivables that are not past due and not impaired

(viii.) There was $116,000 of impaired receivables at reporting date. ($66,000 in 2015).

(d) Liquidity Risk Liquidity risk is the risk that the Trust will be unable to meet its payment obligations when they fall due. The Trust continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets.

The liabilities are recognised for amounts due to be paid in the future for goods or services received, whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with policy set out in Treasury Circular TC11-12. If trade terms are not specified, payment is made no

later than the end of the month following the month in which an invoice or a statement is received. For small business suppliers payments must generally be made within 30 days of receipt of the invoice. No interest was paid for late payment during the year.

The Trust’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, NSW Treasury Corporation Hour-Glass Investments and NSW Treasury Corporation loans.

The table below summarises the maturity profile of the Trust’s financial liabilities together with the interest rate exposure.

During the current and prior year there were no breaches on any loans payable. No assets have been pledged as collateral. The Trust’s exposure to liquidity risk is deemed insignificant based on prior period’s data and current assessment of risk.

Maturity analysis of financial liabilities is based on management’s expectation.

MATURITYANALYSISANDINTERESTRATEEXPOSURE

CONSOLIDATED INTERESTRATEEXPOSURE MATURITYDATES

Weighted Average Effective Int. Rate

Nominal Amount

Fixed Interest

Rate

Variable Interest

Rate

Non-interest bearing < 1 yr 1-5 yrs > 5 yrs

2016 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000

Payables 3.14% 21,692 9,649 - 12,043 14,424 7,268 -Borrowings: TCorp borrowings 5.00% 78,981 78,981 - - 8,516 32,123 38,341

2015

Payables 3.72% 11,090 2,494 - 8,596 9,062 2,028 -Borrowings: TCorp borrowings 4.38% 81,520 81,520 - - - 32,612 48,908

PARENT INTERESTRATEEXPOSURE MATURITYDATES

Weighted Average Effective Int. Rate

Nominal Amount

Fixed Interest

Rate

Variable Interest

Rate

Non-interest bearing < 1 yr 1-5 yrs > 5 yrs

2016 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000

Payables 3.14% 20,542 9,649 - 10,893 13,274 7,268 -Borrowings: TCorp borrowings 5.00% 78,981 78,981 - - 8,516 32,123 38,341

2015

Payables 3.72% 10,433 2,494 - 7,939 8,405 2,028 -Borrowings: TCorp borrowings 4.38% 81,520 81,520 - - - 32,612 48,908

Notes:The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities based on the earliest date on which the Trust can be required to pay. The tables include both interest and principal cash flows and therefore will not reconcile to the statement of financial position.

The Trust monitors rolling forecasts of liquidity reserves on the basis of expected cash flow.

Credit Standby Arrangements: – The Trust maintains an available standby credit facility through an approved $100,000 bank overdraft arrangement.

The Trust holds a $30K security deposit guarantee (T. Greenway & J Banks Pty Ltd). The Trust holds a bank guarantee facility of $2.3M with $63,651 in use (2015: $30,651).

(e) Fair Value Financial instruments are generally recognised at cost, with the exception of the TCorp Hour-Glass facilities, which are measured at fair value. As discussed, the value of the Hour-Glass Investments is based on the Trust’s share of the value of the underlying assets of the facility, based on the market value. All of the Hour Glass facilities are valued using ‘redemption’ pricing. The TCorp Hour-Glass facility is recognised at Level 2 of the fair value hierarchy.





The amortised cost of financial instruments recognised in the statement of financial position approximates the fair value, because of the short-term nature of many of the financial instruments. There were no financial instruments where the fair value differs from the carrying amount.

14. Cash Flow Information

(a) Reconciliation of CashFor the purpose of the statement of cash flows, cash includes: cash on hand, and in banks, and investments in NSW Treasury Corporation Hour-Glass Facility. Cash at 29 February 2016 as shown in the statement of cash flows is reconciled to the related items in the Statement of Financial Position and accompanying notes as follows:

CONSOLIDATED PARENT

2016$’000

2015 $’000

2016$’000

2015 $’000

Cash 8,625 1,299 8,625 1,299NSW Treasury Corporation Hour-Glass 4 3,594 4 3,594

8,629 4,893 8,629 4,893

(b) Reconciliation From the Surplus/ (Deficit) to the Net Cash Flows From Operations

Surplus/(deficit) for the year 8,200 14,081 7,908 13,905

Depreciation 13,130 11,380 13,130 11,380Increase (Decrease) in Debt Transactions (375) (293) (375) (293)Actuarial gains/(losses) on defined benefit pension plans (292) (176) - -

Loss (Gain) on Sale of Non-Current Assets 5 (29) 5 (29)Increase (Decrease) in Creditors 11,201 (18,817) 11,201 (18,817)Decrease (Increase) in Inventories 198 (114) 198 (114)Decrease (Increase) in Debtors (7,681) 670 (7,681) 670Increase (Decrease) in Provisions 408 289 408 289

NetCashFromOperatingActivities 24,794 6,991 24,794 6,991

Firmly committed long-term financing facilities of $95M were available to the Trust at 29 February 2016.

As at that date, $78.9M ($81.5M in 2015) of these facilities was in use.

15. Post Balance Date EventsOn 14 April 2016 the Premier of NSW announced that a refurbishment of Allianz Stadium will only occur in the next term of Government. The funds available for this refurbishment will consist of the residual of the $1.6 billion package for sporting infrastructure after the cost of construction of Parramatta Stadium and ANZ Stadium. As such $5 million of the concept design plans recognised in Property, Plant and Equipment in 2015/16 will be derecognised in 2016/17. No other post balance date events have occurred which would materially affect the financial statements.

ENDOFAUDITEDFINANCIALSTATEMENTS




SYDNEY CRICKET & SPORTS GROUND TRUST STAFF AGENCY

YEAR ENDED 29 FEBRUARY 2016

Statement by Members of the Trust Pursuant to Section 41C (1C) of the Public Finance and Audit Act, 1983, and in accordance with a resolution of the members of the Sydney Cricket & Sports Ground Trust, we declare on behalf of the Trust that in our opinion:

1. The accompanying financial statements exhibit a true and fair view of the financial position of the Sydney Cricket & Sports Ground Trust Staff Agency as at 29 February 2016 and transactions for the year then ended.

2. The statements have been prepared in accordance with the provisions of the Public Finance and Audit Act, 1983, the Public Finance and Audit Regulation, 2015, and the Treasurer’s Directions.

Further, we are not aware of any circumstances which would render any particulars included in the financial statements to be misleading or inaccurate.

MR MAURICE NEWMAN AC MR TONY SHEPHERD AO TRUSTEE/ CHAIRMAN TRUST CHAIRMAN AUDIT & RISK COMMITTEE 17 June 2016


NOTES 2016 2015

$’000 $’000REVENUE

Personnel Services 16,403 16,099

TotalRevenue 16,403 16,099

EXPENDITUREEmployee Related Expenses 2 16,111 15,923

TotalExpenditure 16,111 15,923

NETRESULT 292 176

Other Comprehensive IncomeItems that will not be reclassified subsequentlyto profit or loss

Actuarial Gain/(Loss) on defined benefit plans. (292) (176)

TotalOtherComprehensiveIncomefortheyear (292) (176)

TOTALCOMPREHENSIVEINCOME - -


BEGINNING OF FINANCIAL STATEMENTSSYDNEYCRICKETANDSPORTSGROUNDTRUSTSTAFFAGENCY

Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 29 February 2016

NOTES 2016 2015

$’000 $’000ASSETS

Current Assets

Receivables 3 4,855 3,953

TotalCurrentAssets 4,855 3,953

Non-Current Assets

TotalNon-CurrentAssets - -

TotalAssets 4,855 3,953

LIABILITIESCurrent LiabilitiesPayables 4 1,150 657

Employee Provisions 5 2,344 2,292

TotalCurrentLiabilities 3,494 2,949

Non Current Liabilities - -Employee Provisions 321 263

Superannuation Liability 5 1,040 741

TotalNonCurrentLiabilities 1,361 1,004

TotalLiabilities 4,855 3,953

NetAssets - -

EQUITYAccumulated Funds - -

TotalEquity - -


SYDNEYCRICKETANDSPORTSGROUNDTRUSTSTAFFAGENCY

Statement of Financial Position as at 29 February 2016


NOTES ACCUMULATEDFUNDS TOTAL

$’000 $’000BalanceAt1March2015 - -Surplus/(Deficit) for the Year 292 292

OTHERCOMPREHENSIVEINCOME

Actuarial Gains/(Losses) on defined benefit pension plans (292) (292)

TotalComprehensiveIncomefortheyear - -

BALANCEAT29FEBRUARY2016 - -

BALANCEAT1MARCH2014 - -

Surplus/(Deficit) for the Year 176 176

OTHER COMPREHENSIVE INCOMEActuarial Gains/(Losses) on defined benefit pension plans (176) (176)

TotalComprehensiveIncomefortheyear - -

BALANCEAT28FEBRUARY2015 - -



Statement of Changes in Equity for the Year Ended 29 February 2016

NOTES 2016 2015

$’000 $’000NET CASH FLOWS FROM OPERATING ACTIVITIES - -

NET CASH FLOWS FROM INVESTING ACTIVITIES - -

NET CASH FLOWS FROM FINANCING ACTIVITIES - -

NETINCREASE/(DECREASE)INCASHANDCASHEQUIVALENTS - -

Opening Cash and cash equivalents - -

CLOSINGCASHANDCASHEQUIVALENTS - -



Statement of Cash Flows for the Year Ended 29 February 2016


1. Summary of Significant Accounting Policies

(a) Reporting Entity The Sydney Cricket & Sports Ground Trust Staff Agency (the Agency) is a Public Service Agency, established pursuant to Schedule 1 of the Government Sector Employment Act 2013 (GSEA). The Trust is a not for profit entity (profit is not its principle objective). The reporting entity is consolidated as part of the Sydney Cricket and Sports Ground Trust Accounts. The entity employs and remunerates all Trust permanent and casual employees, excluding Trustees and contracted event day casual staff.

The Sydney Cricket and Sports Ground Trust Staff Agency was established on 24 February 2014 under the Government Sector Employment Act 2013 (GSEA) to provide personnel services to the Trust. The consolidated Financial Statements of the Trust include the activities of this Agency. The enactment of this legislation resulted in the assets and liabilities of the previous entity (the Sydney Cricket and Sports Ground Trust Division) being transferred to the new entity (the Sydney Cricket and Sports Ground Trust Staff Agency).

On 2 March 2016 the Government Sector Employment Legislation Amendment Act 2016 No 2 was issued. The Act made the following amendments relevant to the Trust:

» reference to the Trust was removed from the GSE Act 2013

» the Sydney Cricket and Sports Ground Trust Act 1978 No 72 was amended to allow the Trust to employ staff.

These amendments remove the requirement for the Trust to comply with the requirements of the GSE Act 2013 and effectively abolish the Sydney Cricket and Sports Ground Trust Staff Agency from 1 January 2017.

The Agency is domiciled in Australia and its principal office is at Moore Park Road, Paddington.

(b) Basis of Preparation The Agency’s financial statements are general purpose financial statements prepared in accordance with the requirements of Australian Accounting Standards (including Australian Accounting Interpretations), the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2015, and specific directions issued by the Treasurer.

Generally, the historical cost convention has been adopted and the financial statements do not take into account changing money values or current valuations. However, certain provisions are measured at fair value.

The accrual basis of accounting has been adopted in the preparation of the financial statements, except for cash flow information.

Management’s judgements, key assumptions and estimates made are disclosed in the relevant notes to the financial statements.

All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency.

(c) Statement of ComplianceThe Agency’s financial statements for the year ended 29 February 2016 has been authorised for issue by the Trust on 15 June 2016.

The Agency’s financial statements comply with Australian Accounting Standards (which includes Australian Accounting Interpretations).

(d) Revenue RecognitionRevenue is measured at the fair value of the consideration received or receivable. Revenue from the rendering of personnel services is recognised when the service is provided and only to the extent that the associated recoverable expenses are recognised.

(e) Receivables A receivable is recognised when it is probable that the future economic benefits associated with it will be realised and it has a value that can be measured reliably. It is derecognised when the contractual or other rights to future economic benefits from it expire or are transferred.

A receivable is measured initially at fair value and subsequently at amortised cost using the effective interest rate method, less any allowance for impairment. A short-term receivable with no stated interest rate is measured at the original invoice amount where the effect of discounting is immaterial. An invoiced receivable is due for settlement within thirty days of invoicing.

If there is objective evidence at year-end that a receivable may not be collectable, its carrying amount is reduced by means of an allowance for impairment and the resulting loss is recognised in the statement of comprehensive income. Receivables are monitored during the year and bad debts are written off against the allowance when they are determined to be irrecoverable. Any other loss or gain arising when a receivable is derecognised is also recognised in the statement of comprehensive income.


Notes to the Financial Statements for the Year Ended 29 February 2016SYDNEYCRICKETANDSPORTSGROUNDTRUSTSTAFFAGENCY


(f) Payables Payables include accrued wages, salaries, and related on costs (such as payroll tax, fringe benefits tax and workers’ compensation insurance) where there is certainty as to the amount and timing of settlement.

A payable is recognised when a present obligation arises under a contract or otherwise. It is derecognised when the obligation expires or is discharged, cancelled or substituted.

A short-term payable with no stated interest rate is measured at historical cost if the effect of discounting is immaterial.

(g) Salaries and Wages, Employee Benefit Provisions and Expenses Provision is made for annual leave and long service leave estimated to be payable to employees as at reporting date.

Unused non-vesting sick leave does not give rise to a liability, as it is not considered probable that sick leave taken in the future will be greater than the benefits accrued in the future. Benefits for Rostered Days Off (RDOs) have not been accrued, as the Trust policy is not to cash out these balances.

Benefits for long service leave and annual leave have been provided on the basis of emerging entitlements for recognised service for long service leave, and quantum due at reporting date for annual leave.

In accordance with Accounting Standard AASB 119 “Employee Benefits” liabilities arising in respect of salaries and wages, annual leave and other employee benefits expected to be settled within twelve months of the reporting date are measured at their nominal amounts based on remuneration rate which are expected to be paid when the liability is settled. Annual leave is not expected to be settled wholly before 12 months after the end the annual reporting period in which the employees render the related service. As such it is required to be measured at present value in accordance with AASB 119 Employee Benefits.

The liability arising in respect of annual leave is recognised and measured by applying the nominal value based on remuneration rates plus the annual leave-on-leave liability. The Trust has determined that the calculation of projecting and discounting annual leave to be immaterial and as such the liability is classified as a short-term liability in accordance with TC 15/09. All other employee benefit liabilities are measured at the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date. In determining the present value of future cash outflows, the market yield on national government bonds, which have terms to maturity approximating the terms of the related liability are used. The provisions for leave entitlements also include the relevant on-costs.

For defined contribution superannuation schemes, employer contributions are expensed when incurred. A liability is recognised only to the extent of unpaid employer contributions at reporting date.

As per Accounting Standard AASB 119 for defined benefit superannuation schemes, expenses are recognised based on the current service costs and net interest and expected return on fund assets now are recognised as other comprehensive income for the reporting period as calculated and advised by Pillar Administration. In accordance with NSW Treasury policy TC 14-05 Accounting for Superannuation and AASB 119 Employee Benefits, the consolidated entity recognises actuarial gains and losses and the actual return on fund assets for defined benefit superannuation schemes outside of the surplus/(deficit) in the ‘other comprehensive income’. The actuarial gains and losses for defined benefit superannuation schemes are expensed by the parent entity as part of their personnel service expenses. A net liability or asset is recognised based on the difference between the present value of the Trust’s defined benefit obligations and the fair value of fund assets as at the reporting date, as adjusted for unrecognised past service costs, unrecognised gains/(losses), and limitations on net assets. The net liability or asset is actuarially determined.

(h) ComparativesExcept when an Australian Accounting Standard permits or requires otherwise, comparative information is disclosed in respect of the previous period for all amounts reported in the financial statements.


(i) New Accounting Standards Issued But Not EffectiveThe accounting policies applied in 2015-16 are consistent with those of the previous financial year.

At reporting date a number of accounting standards adopted by the AASB had been issued but are not yet effective. At present New South Wales Treasury is mandating not to early adopt any of the new Standards/Interpretations as per Treasury Circular TC 16-02.

The following new Standards/Interpretations have not been early adopted by the Trust and are not yet effective.

» AASB 9 and AASB 2014-7 regarding financial instruments

» AASB 15, AASB 2014-5 and AASB 2015-8 regarding Revenue from Contracts with Customers

» AASB 1057 and AASB 2015-9 Application of Australian Accounting Standards

» AASB 2014-4 regarding acceptable methods of depreciation and amortisation

» AASB 2015-1 regarding annual improvements to Australian Accounting Standards 2012-2014 cycle

» AASB 2015-2 regarding amendments to AASB 101 (disclosure initiative)

» AASB 2015-6 Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities

» AASB 2015-7 Amendments to Australian Accounting Standards – Fair Value Disclosures of Not-for-Profit Public Sector Entities

It is considered that the implementation of these Standards will not have any material impact on the Trust’s financial results.

(j) Equity and ReservesAccumulated funds include all current and prior period retained funds.

2. Employee Related Expenses

2016 2015

$’000 $’000

Salaries & Wages 12,541 12,390

Annual Leave/Long Service Leave 1,199 1,114Payroll Tax 786 758Workers Compensation Insurance 166 287Superannuation 1,301 1,361Other 118 13

16,111 15,923

3. ReceivablesCurrent

Parent Entity – Sydney Cricket & Sports Ground Trust 4,855 3,953

4,855 3,953

4. PayablesCurrent

Accrued salaries, wages & on-costs 1,150 657

1,150 657



5. ProvisionsCurrentAnnual Leave 1,076 1,092Provision for long service leave and on-costs 1,268 1,200

TotalEmployeeRelatedProvisions 2,344 2,292

NonCurrent Provision for long service leave and on-costs 321 263Superannuation Liability 1,040 741

1,361 1,004

The Trust expects to settle the annual leave entitlements within the next twelve months.

The amount of long service leave expected to be taken in the next twelve months is immaterial.

Superannuation – Defined Benefits PlanThe Trust has a $1,040,082 ($740,651 in 2015) net liability for the employer’s obligation to defined benefit superannuation schemes at the Trust.

The funding position at 29 February 2016 in respect of the two defined benefits schemes related to personnel services received, namely the State Authorities Superannuation Scheme (SASS) and the State Authorities Non-Contributory Superannuation Scheme (SANCS) has been advised by Pillar Administration:

FUND ESTIMATEDRESERVEACCOUNTSFUNDS

ACCRUEDLIABILITY

NETLIABILITYATYEAREND

2016$’000

2015 $’000

2016$’000

2015 $’000

2016$’000

2015 $’000

SASS 2,170 2,142 3,042 2,726 872 584SANCS 105 95 273 252 168 157

2,275 2,237 3,315 2,978 1,040 741

Accountingpolicyforrecognisingactuarialgains/lossesActuarial gains and losses are recognised immediately in other comprehensive income in the year in which they occur.

FundinformationThe Pooled Fund holds in trust the investments of the closed NSW public sector superannuation schemes including: the State Authorities Superannuation Scheme (SASS) and the State Authorities Non-contributory Superannuation Scheme (SANCS).

These schemes are defined benefit schemes – at least a component of the final benefit is derived from a multiple of member salary and years of membership. The Schemes are closed to new members.




Description of the regulatory frameworkThe schemes in the Pooled Fund are established and governed by the following NSW legislation, State Authorities Superannuation Act 1987, State Authorities Non-Contributory Superannuation Scheme Act 1987, and their associated regulations.

The schemes in the Pooled Fund are exempt public sector superannuation schemes under the Commonwealth Superannuation Industry (Supervision) Act 1993 (SIS). The SIS Legislation treats exempt public sector superannuation funds as complying funds for concessional taxation and superannuation guarantee purposes.

Under a Heads of Government agreement, the New South Wales Government undertakes to ensure that the Pooled Fund will conform with the principles of the Commonwealth’s retirement incomes policy relating to preservation, vesting and reporting to members and that members’ benefits are adequately protected.

The New South Wales Government prudentially monitors and audits the Pooled Fund and the Trustee Board activities in a manner consistent with the prudential controls of the SIS legislation. These provisions are in addition to other legislative obligations on the Trustee Board and internal processes that monitor the Trustee Board’s adherence to the principles of the Commonwealth’s retirement incomes policy.

An actuarial investigation of the Pooled Fund is performed every three years. The last actuarial investigation was performed as at 30 June 2015.

Description of other entities’ responsibilities for the governance of the fund

The Fund’s Trustee is responsible for the governance of the Fund. The Trustee has a legal obligation to act solely in the best interests of fund beneficiaries. The Trustee has the following roles:

» Administration of the fund and payment to the beneficiaries from fund assets when required in accordance with the fund rules

» Management and investment of the fund assets » Compliance with other applicable regulations

Description of risksThere are a number of risks to which the Fund exposes the Employer. The more significant risks relating to the defined benefits are:

Investment risk - The risk that investment returns will be lower than assumed and the Employer will need to increase contributions to offset this shortfall

Longevity risk – The risk that pensioners live longer than assumed, increasing future pensions

Pension indexation risk – The risk that pensions will increase at a rate greater than assumed, increasing future pensions

Salary growth risk - The risk that wages or salaries (on which future benefit amounts for active members will be based) will rise more rapidly than assumed, increasing defined benefit amounts and thereby requiring additional employer contributions

Legislative risk - The risk is that legislative changes could be made which increase the cost of providing the defined benefits

The defined benefit fund assets are invested with independent fund managers and have a diversified asset mix. The Fund has no significant concentration of investment risk or liquidity risk.

Description of significant events - There were no fund amendments, curtailments or settlements during the period.


SASS2016

$’000

SANCS2016

$’000

Net Defined Benefit Liability/(Asset) at start of year 584 157Current service cost 30 9Net Interest on the net defined benefit liability/(asset) 14 4Past service cost 0 0(Gains)/losses arising from settlements 0 0Actual return on Fund assets less Interest income 94 4Actuarial (gains)/losses arising from changes in demographic assumptions 230 (2)Actuarial (gains)/losses arising from changes in financial assumptions 21 2Actuarial (gains)/losses arising from liability experience (63) 6Adjustment for effect of asset ceiling 0 0Employer contributions (38) (12)Effects of transfers in/out due to business combinations and disposals 0 0

NetDefinedBenefitLiability/(Asset)atendofyear 872 168

SASS2016

$’000

SANCS2016

$’000


Fair value of Fund assets at beginning of the period 2,142 95Interest income 50 2Actual return on Fund assets less Interest income (94) (4)Employer contributions 38 12Contributions by participants 26 0Benefits paid 2 0Taxes, premiums & expenses paid 6 0Transfers in 0 0Contributions to accumulation section 0 0Settlements 0 0Exchange rate changes 0 0







Present value of defined benefit obligations at beginning of the year after contribution tax assumption change 2,726 253

Current service cost 29 9Interest cost 64 6Contributions by participants 26 0Actuarial (gains)/losses arising from changes in demographic assumptions 229 (2)Actuarial (gains)/losses arising from changes in financial assumptions 21 2Actuarial (gains)/losses arising from liability experience (63) 6Benefits paid 3 0Taxes, premiums & expenses paid 7 (1)Transfers in 0 0Contributions to accumulation section 0 0Past service cost 0 0Settlements 0 0Exchange rate changes 0 0









Actuarial (gains) losses on liabilities 187 6Actual return on Fund assets less Interest income 95 4Adjustment for effect of asset ceiling 0 0

Totalre-measurementinOtherComprehensiveIncome 282 10

FairValueofFundAssetsAll Pooled Fund assets are invested by STC at arm’s length through independent fund managers. Assets are not separately invested for each entity and it is not possible or appropriate to disaggregate and attribute plan assets to individual entities. As such, the disclosures below relate to total assets of the Pooled Fund.



AssetcategoryTotal

(A$’000)

Quotedpricesinactivemarketsforidentical

assetsLevel1(A$’000)



UnobservableinputsLevel3

(A$’000)

Short Term Securities 2,978,555 2,943,012 35,542 -Australian Fixed Interest 2,650,946 27,895 2,623,051 -

International Fixed Interest 828,608 (75) 828,683 -

Australian Equities 9,512,077 9,057,851 446,022 8,204International Equities 12,451,509 9,268,278 2,180,440 1,002,792 Property 3,438,598 1,036,559 701,343 1,700,696 Alternatives 7,790,660 557,505 3,108,946 4,124,209

Total 39,650,953 22,891,025 9,924,027 6,835,901


As at 30-Nov-15Short Term Securities 7.5%Australian Fixed Interest 6.7%International Fixed Interest 2.1%Australian Equities 24.0%International Equities 31.4%Property 8.7%Alternatives 19.6%

Total 100.0%





Level 1 – quoted prices in active markets for identical assets or liabilities. The assets in these levels are listed shares; listed unit trusts.

Level 2 – inputs other than quoted prices observable for the asset or liability, either directly or indirectly. The assets in this level are cash; notes; government, semi-government and corporate bonds; unlisted trusts containing where quoted prices are available in active markets for identical assets or liabilities.

Level 3 – inputs for the asset or liability that are not based on observable market data. The assets in this

level are unlisted property; unlisted shares; unlisted infrastructure; distressed debt; hedge funds.


VALUATIONMETHODANDPRINCIPALACTUARIALASSUMPTIONSATTHEBALANCEDATE:



2.5% 2015/2016 to 2018/2019; 3.50% 2019/2020 and 2020/2021;


Rate of CPI increase 2.25% 2015/2016; 2.75% 2016/2017; 2.50% pa thereafter



Pensioner mortality The pensioner mortality assumptions are as per the 2015 Actuarial Investigation of the Pooled Fund


The weighted average duration of the defined benefit obligation is 12 years.



Base CaseScenario A


+1.0% discount rate



Base Case



Discount rate as above as above as aboveRate of CPI increase as above above rates plus 0.5% pa above rates less 0.5% paSalary inflation rate as above as above as above


Base Case



Discount rate as above as above as aboveRate of CPI increase as above as above as aboveSalary inflation rate as above above rates plus 0.5% pa above rates less 0.5% pa


Base Case






SASS2016

$’000

SANCS2016

$’000









SASS2016

$’000

SANCS2016

$’000




SASS Multiple of member

contributions

SANCS % member

salary

0.00 0.00

(c)Asset-Liabilitymatchingstrategies

We are not aware of any asset and liability matching strategies currently adopted by the Plan.



Expected rate of return on fund assets backing current pension liabilities 7.8% pa

Expected rate of return on fund assets backing other liabilities 6.8% paExpected salary increase rate 3.0% to 30 June 2019, then 3.5% pa thereafter





SASS2015

$’000

SANCS2015

$’000

Net Defined Benefit Liability/(Asset) at beginning of the period before contribution tax assumption change 312 120

Adjustment due to contribution tax assumption change 47 18 Net Defined Benefit Liability/(Asset) at beginning of the period 359 138Current service cost 85 13Net Interest on the net defined benefit liability/(asset) 14 5Past service cost 0 0(Gains)/losses arising from settlements 0 0Actual return on Fund assets less Interest income (112) (8)Actuarial (gains)/losses arising from changes in demographic assumptions 0 0Actuarial (gains)/losses arising from changes in financial assumptions 371 30Actuarial (gains)/losses arising from liability experience (95) (9)Adjustment for effect of asset ceiling 0 0Employer contributions (38) (12)

NetDefinedBenefitLiability/(Asset)atendoftheperiod 584 157


Fair value of Fund assets at beginning of the period 2,250 161Interest income 87 6Actual return on Fund assets less Interest income 112 7Employer contributions 38 12Contributions by participants 36 0Benefits paid (413) (92)Taxes, premiums & expenses paid 32 1Transfers in 0 0Contributions to accumulation section 0 0Settlements 0 0

Exchange rate changes 0 0







SASS2015

$’000

SANCS2015

$’000

Present value of defined benefit obligations at beginning of the year before contribution tax assumption change 2,562 281

Adjustment due to contribution tax assumption change 47 18Present value of defined benefit obligations at beginning of the year after contribution tax assumption change 2,609 299

Current service cost 85 13Interest cost 100 12Contributions by participants 37 0Actuarial (gains)/losses arising from changes in demographic assumptions 0 0Actuarial (gains)/losses arising from changes in financial assumptions 371 29Actuarial (gains)/losses arising from liability experience (95) (9)Benefits paid (413) (92)Taxes, premiums & expenses paid 32 1Transfers in 0 0Contributions to accumulation section 0 0Past service cost 0 0Settlements 0 0Exchange rate changes 0 0









SASS2015

$’000

SANCS2015

$’000

Actuarial (gains) losses on liabilities 276 20Actual return on Fund assets less Interest income (112) (8)Adjustment for effect of asset ceiling 0 0

Totalre-measurementinOtherComprehensiveIncome (164) (12)

FairValueofFundAssets

All Pooled Fund assets are invested by STC at arm’s length through independent fund managers. Assets are not separately invested for each entity and it is not possible or appropriate to disaggregate and attribute plan assets to individual entities. As such, the disclosures below relate to total assets of the Pooled Fund.



Assetcategory Total(A$’000)

Quotedpricesinactivemarketsfor

identicalassetsLevel1(A$’000)



Unobservableinputs

Level3(A$’000)

Short Term Securities 2,800,451 60,035 2,740,416 - Australian Fixed Interest 2,602,827 9,345 2,576,847 16,635 International Fixed Interest 935,087 (315) 935,402 -

Australian Equities 10,448,731 9,989,280 454,401 5,050 International Equities 11,841,044 8,954,886 2,885,762 396 Property 3,413,800 970,865 759,838 1,683,097 Alternatives 6,733,061 607,195 3,136,335 2,989,531

Total 38,775,001 20,591,291 13,489,001 4,694,709


ASAT 30-NOV-14

Short Term Securities 7.2%Australian Fixed Interest 6.7%International Fixed Interest 2.5%Australian Equities 26.9%International Equities 30.5%Property 8.8%Alternatives 17.4%

Total 100.0%





Level 1 - quoted prices in active markets for identical assets or liabilities. The assets in these levels are listed shares; listed unit trusts.

Level 2 - inputs other than quoted prices observable for the asset or liability, either directly or indirectly. The assets in this level are cash; notes; government, semi-government and corporate bonds; unlisted trusts containing where quoted prices are available in active markets for identical assets or liabilities.

Level 3 - inputs for the asset or liability that are not based on observable market data. The assets in this level are unlisted property; unlisted shares; unlisted infrastructure; distressed debt; hedge funds.



The weighted average duration of the defined benefit obligation is 11.3 years.

SENSITIVITYANALYSIS

The entity’s total defined benefit obligation as at 28 February 2015 under several scenarios is presented below.


Base CaseScenario A


+1.0% discount rate



Base Case



Discount rate as above as above as aboveRate of CPI increase 2.5% 3.0% 2.0%Salary inflation rate as above as above as above


Base Case



Discount rate as above as above as aboveRate of CPI increase as above as above as above

Salary inflation rate as above above rates plus 0.5% pa

above rates less 0.5% pa


Base Case





EXPECTEDCONTRIBUTIONS:

SASS2015

$’000

SANCS2015

$’000








SASSMULTIPLE

OFMEMBERCONTRIBUTIONS

SANCS%MEMBER

SALARY

0.00 0.00

(c)Asset-LiabilitymatchingstrategiesWe are not aware of any asset and liability matching strategies currently adopted by the Plan.



Expected rate of return on fund assets backing current pension liabilities 8.3% paExpected rate of return on fund assets backing other liabilities 7.3% paExpected salary increase rate 2.7% pa to 30 June 2018, then 4%







Where a deficiency exists, the employer is responsible for any difference between the employer’s share of Fund assets and the defined benefit obligation.6. Employee Benefits

6. Employee Benefits

LiabilityThe aggregate employee benefit liability recognised and included in the financial statements is as follows:

2016$’000

2015 $’000

Accrued salaries, wages & on costs 1,150 657

Provisionforemployeebenefits:Current (note 5) 2,344 2,292

Non-Current (note 5) 1,361 1,004

3,705 3,007

Totalemployeebenefitsliability 4,855 3,953

7. Contingent Liabilities and Contingent Assets

Contingent LiabilitiesThe Agency is not aware of any significant or material contingent liability in existence at balance date or which has emerged subsequent to balance date which would materially impact on the financial position of the Agency as shown in the Financial Statements.

Contingent AssetsThe Agency is not aware of any significant or material contingent asset in existence at balance date or which has emerged subsequent to balance date which would materially impact on the financial position of the Agency as shown in the Financial Statements.

8. Financial Instrument DisclosuresThe Agency’s principal financial instruments comprise receivables and payables. The CEO of the Sydney Cricket & Sports Ground Trust has responsibility for the establishment and oversight of risk management. Compliance with risk management policies are reviewed by the Audit & Risk Committee and Internal Auditors continuously.

Net Fair ValuesFinancial Instruments are carried at amortised cost. The resultant values are reported in the Statement of Financial Position and are deemed to constitute net fair values due to their short term nature. The Staff Agency does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

FINANCIALINSTRUMENTCATEGORIES

CLASS NOTE CATEGORY

CARRYINGAMOUNT

2016

Carrying Amount

2015

FinancialAssets

Receivables 3 Loans and receivables (measured at amortised cost) 4,855 3,953

FinancialLiabilities

Payables 4 Financial Liabilities (measured at amortised cost) 1,150 657

Credit Risk

Credit risk arises when there is the possibility of the Agency’s debtors defaulting on their contractual obligations. The maximum exposure to credit risk is represented by the carrying amounts of the financial assets.

All receivables are from the parent Sydney Cricket & Sports Ground Trust, comprising salaries and entitlements of employee services provided. There are no financial assets that are past due or impaired. No collateral is held by the Staff Agency and it has not granted any financial guarantees.

Liquidity RiskLiquidity risk is the risk that the Agency will be able to meet its payment obligations when they fall due. The financial liabilities recognised are for amounts due to be paid in the future for employee services received. Amounts owing to employees are settled as they fall due. The Agency is not exposed to interest rate risk and amounts are expected to be settled within 12 months. During the current and previous year there were no defaults or breaches on any amounts payable. No assets have been pledged as collateral.

Market RiskMarket risk is the risk that the fair value of the financial instrument will fluctuate because of a change in market prices. The Agency does not have exposure to market risk as all financial instruments relate to employee payments made by the Trust. The Agency has no exposure to foreign currency or interest rate risk and does not enter into commodity contracts.

9. Post Balance Date EventsNo post balance date events have occurred which would materially affect the financial statements.

ENDOFAUDITEDFINANCIALSTATEMENTS





SYDNEY CRICKET & SPORTS GROUND TRUST INITIAL BUDGET OF REVENUE AND EXPENDITURE For the Year Ended 29 February, 2016 & Outline Budget For the Year Ending 28 February, 2017

BUDGET2015/16

$’000

ACTUAL2015/16

$’000

BUDGET2016/17

$’000

REVENUE

Membership 23,800 25,438 26,178Hire Fees 9,540 10,454 9,444Catering 18,810 21,430 19,038Advertising and Sponsorship 14,638 14,790 15,076Corporate Seating Sales 4,720 4,122 5,121Other Revenue 12,952 10,253 13,198

SubTotal 84,460 86,487 88,055

Govt Grants 5,800 5,800 ..

TOTALREVENUE 90,260 92,287 88,055

EXPENDITURE

Operating Costs 46,711 48,379 50,256Employee Related Expense 18,472 18,405 18,904Depreciation 13,600 13,130 13,600Finance Costs 3,881 4,168 4,136

TOTALEXPENDITURE 82,664 84,082 86,886

Gain/(Loss)onDisposalofAssets .. (5) ..

NETRESULT 7,596 8,200 1,169

137


CONSUMER RESPONSEThe Trust’s venues and Member facilities, such as the Stadium Fitness Centre and SCG Museum, catered for more than 1.8 million visitors during the reporting period. Feedback is closely monitored to ensure patrons continue to receive the best possible service.

The Trust responds to consumer feedback from Members, corporate guests, sports partners and the general public. Staff are trained to follow a set of procedures to resolve complaints immediately if possible or at least ensure prompt action for more complex issues.

Feedback ReceivedGENERALPUBLIC

Positive and negative feedback was received from event attendees, including more than 100 complaints about facilities and services. The majority of comments received were managed by the Events and Operations department and responded to individually.

Feedback related to:

» Food and beverage pricing and queuing times » Parking availability in the Gold and Platinum

Members car park on event and non-event days » Parking access to the EP2 and EP3 car

parks managed by the Centennial Park and Moore Park Trust on event days

» Transport, traffic flow, ingress and egress at events at the SCG and Allianz Stadium

» Seating complaints and ticketing errors at both venues

PUBLICSURVEYS

To monitor customer satisfaction and identify areas for improvement, the Trust undertakes annual research about the event experience. This is benchmarked against results collected in previous years dating back to 2010.

Participants were asked to give a satisfaction rating out of 10 for areas such as food and beverage outlets, entertainment, event staff, amenities, security and safety, health of environment, merchandise and access to information.

A snapshot of the customer experience average by venue showed that both the SCG and Allianz Stadium remained consistent with last year (7.9 and 7.7 out of 10 respectively).

MEMBERFEEDBACK

Member feedback was focused on dress regulations, car parking, catering, Member behaviour and subscription fees.

Dress standards are a condition of membership for attending our grounds as a Member or guest. These requirements are explained on our website, and Members are surveyed annually about these regulations.

As a result, the Trust reviewed dress standards and amended the code to permit blue jeans in Member areas. Dress regulations will continue to be closely monitored by the Trust.

MEMBERSURVEYS

The Trust conducts an annual research program focused on customer satisfaction of Members who attended events. The 2015/16 report was benchmarked with data collected over the last nine years. In addition, we also surveyed more than 1,700 Members after seven events, across a variety of codes, held at our grounds throughout the year.

Members were asked for feedback across 12 areas of their experience ranging from entertainment value, venue access and staff service to food, beverages and amenities.

The overall snapshot of their customer experience for the SCG and Allianz Stadium was on par with last year (7.8 and 7.7 out of 10 respectively). Almost all areas tested showed consistency or a small improvement on the previous year.

CORPORATEGUESTS

During 2015/16, the Trust investigated approximately 20 complaints from corporate guests, generally relating to the quality of food and in-seat service offered in these areas.

In many cases, these were issues that could be resolved on the day and/or followed up by our contracted cleaner/caterer in the lead up to fixtures. Annual clients work closely with Trust commercial representatives to ensure customers receive the best possible service on event days.

STADIUMFITNESSCENTRE

The Stadium Fitness Centre deals with Members on a daily basis. Overall the SFC received more positive feedback than complaints in the past year.

Just over 800 written and verbal complaints were received in the last reporting period, a significant reduction from approximately

1000 that were recorded in the previous year. This feedback related to car parking, gym maintenance, fitness programs, the facility, member etiquette, closures and hours of operation.

New equipment and enhanced fitness programs contributed to positive feedback, with more than 1000 compliments received in the past financial year.

HIRINGPARTNERS

The Trust meets with all partners before and after events to discuss operations, identify issues and work on resolutions. Senior management from all parties also meet bi-monthly to discuss high-level and long-term planning. The Trust schedules post-season debriefs with each hiring partner as regular management practice to ensure learnings are acted upon for future seasons.

MUSEUMTOURS

Positive feedback is frequently received from the SCG Experience on the knowledge and professional manner that the tour guides provide. Our stadium tours are also rated well by users on Trip Advisor.


INDEX

16 Asset management

14 Attendances

66 Audited financial statements (Trust)

114 Audited financial statements (Trust Staff Agency)

66 Auditor’s reports

79 Budget of revenue and expenditure

17 Capital works program

13 Catering

58 CEO and General Manager profiles

4 Chairman’s report

26 Commercial

13 Concerts

27 Corporate hospitality

36 Corporate services

18 Environment and sustainability

10 Event management

64 Financial indicators

46 Human resources

2 Letter of submission

28 Membership and marketing

3 Minister’s forward

32 Museum and tours

56 Organisational chart

63 Performance statement

140 Right to information

26 Sponsorship

31 Stadium Fitness Centre

24 Strategy and projects

50 Trustee profiles

62 Trust charter and constitution

56 Trust meetings

6 Vision and goals

RIGHT TO INFORMATIONOn 1 July 2010, the Freedom of Information Act 1989 was replaced by the Government Information (Public Access) Act 2009.

The objectives of GIPA are:

» Authorising and encouraging the proactive public release of government information by agencies » Giving members of the public an enforceable right to access government information » Providing that access to government information is restricted only when there is an overriding public interest

against disclosure

RequestsOne request was received in June 2015 from The Hon. Shaoquett Moselmane MLC for information relating to the expansion of grounds controlled by the Trust and information relating to government funding for infrastructure upgrades.

The Right to Information Officer can be contacted at:

Level 2, Sheridan Building, Moore Park Road, Moore Park NSW 2021

Phone: (02) 9360 6601

Fax: (02) 9360 1319


GPO Box 150, Sydney NSW 2001

Feesandchargesareasfollows: » Subject to 50 per cent reduction for financial hardship and public interest reasons » No application fees may be charged for internal reviews in relation to amendment of records » Refunds may apply as a result of successful internal reviews and applications for amendment of records

NatureofApplication ApplicationFee ProcessingCharge

Access to records by people about their personal affairs $30 $30/hour after

first 20 hours*

All other requests $30* $30/hour

Internal reviews $40** Nil

Amendment of records Nil*** Nil

General Enquiries: (02) 9360 6601

Fax: (02) 9360 1319


Trust Office: Administration Office, Level 2, Sheridan Building Moore Park Road, Moore Park NSW 2021

Postal Address: GPO Box 150, Sydney NSW 2001

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