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Linking Melbourne Authority

Annual Report 2014-2015

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1. Chairman’s Report

In accordance with the Financial Management Act 1994, I am pleased to present the Department of Economic Development, Jobs, Transport and Resources Annual Report for the year ended 30 June 2015. Richard Bolt Secretary

2. CEO Report Nil

3. Organisational Objectives, Indicators and Outputs Objectives In March 2013, the Minister for Roads appointed LMA the ‘project proponent’ for the eastern section of the EastWest Link - an 18 kilometre inner-urban freeway extending across Melbourne from the Eastern Freeway to the Western Ring Road. Following the Victorian Government’s announcement of funding for the project in May 2013, LMA commenced the formal planning and consultation process for this eastern section. LMA commenced and completed the evaluation and procurement phase during 2014-15 to procure the East West Link’s eastern section from the Eastern Freeway to CityLink. In 2013-14 and in 2014-15 LMA received capital funding to acquire and construct the East West Link eastern section (refer note 24). However this project and LMA's status as the project proponent ceased during the second half of 2014-15 and LMA has ceased all major activities.

Indicators

• Plan and procure major road projects allocated by the Victorian Government through Public Private Partnerships

• Integrated project planning and procurement • Effective project delivery and contract management • Engage with communities and stakeholders • Strengthen organisation effectiveness, leadership and innovation • Winding down the organisation and transferring the PenLink and EWL projects to

VicRoads and DEDJTR respectively Outputs LMA's status as the project proponent ceased during the second half of 2014-15 and LMA has ceased all major activities following the government announcement of the discontinuation on East West Link in December 2014.

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4. Governance LMA Board The LMA Board is appointed by the Governor-in-Council and is responsible to the Minister for Roads. The Board draws on the expertise and extensive experience of its members to provide oversight and governance of LMA’s activities and operations.

Ken Scott-Mackenzie, Chairman Chris Leptos AM, Deputy Chair Tony Darvall Claire Filson Robert Cameron Peter Lowe

Audit Committee Membership and Roles

The Audit Committee’s objective is to support the Board by overseeing LMA’s financial management, internal and external audit activities, compliance requirements and the effectiveness of the internal control environment. Members of the Audit Committee are LMA Board Directors and three (Claire Filson, Tony Darvall, Chris Leptos and Peter Lowe) are independent members in accordance with the requirements of section 2.2(f) of the Standing Directions of the Minister for Finance under the Financial Management Act 1994.

5. Risk Management and Insurance

Attestation for compliance with the Ministerial Standing Direction 4.5 “I, Richard Bolt, certify that the Department of Economic Development, Jobs, Transport and Resources has partially complied with the Ministerial Standing Directions 4.5.5 — Risk Management Framework and Processes. Following the December 2014 state election, extensive change has been experienced as a result of the machinery of government changes establishing the department which were effective on 1 January 2015. This has involved bringing together the risk management policies and frameworks of five former departments. The resultant departmental policy and framework was considered and approved by the department’s executive board on 24 June 2015. The department is working to progressively improve and consolidate its risk management processes. The department’s Audit and Risk Committee believes this to be a reasonable statement at this time.” Richard Bolt, Secretary Department of Economic Development, Jobs, Transport and Resources

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6. Organisational chart first half of 2014-15

7. Employment principles and workforce data: Occupational Health and Safety LMA remained focused on providing a safe and efficient working environment for our people, with a key achievement being the ongoing training and career development opportunities offered to all staff as part of the transition to other employment or activities.

8. Employment principles and workforce data: Workforce data LMA people are dedicated to delivering high quality infrastructure projects and to working closely with stakeholders and communities to ensure projects meet their needs and expectations. Our team capabilities include a range of engineering, planning, technical, property, commercial, legal, financial and communications skills. Staff work under the guidance and direction of the Board and maintain strong and effective working relationships with the Minister for Roads, VicRoads, the Department of Transport, Planning and Local Infrastructure (DTPLI) and Public Transport Victoria. During the second half of 2014/15 the organisation has been progressively winding-up following Victorian Government decisions to end the East West Link project and conclude the operations of the organisation.

9. Employment principles and workforce data: Executive officer data

Refer to Note 26 of the financial statements.

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10. Consultancy Expenditure: Details of consultancies >$10k

In 2014-15, there were 20 consultancies where the total fees payable to the consultants were $10 000 or greater. The total expenditure incurred during 2014-15 in relation to these consultancies is $8.378 million (excluding GST). Consultancy Expenditure: Details of consultancies <10k In 2014-15, there were 29 consultancies where the total fees payable to the consultants were less than $10 000.

11. Major Contracts Linking Melbourne Authority entered into three major contracts valued at $10 million or more during the year ended 30 June 2015. Vendor Description Start Date Amount Clayton Utz Legal Advice 1 January 2011 $23,454,000 GHD East West Link Technical Adviser 3 May 2013 $14,500,000 Pricewaterhouse Commercial & Financial Advisory 1 October 2010 $16,000,000 Coopers Services

LMA Consultancy Disclosures 2014-15 Financial Year $,000 (excl GST)

Consultant Pirpose of Consultancy Start Date End Date

Total Approved

Project FeeExpenditure

2014-15Future

ExpenditureAction OHS Consulting Pty Ltd OHS Review 01-Sep-14 30-Sep-14 15 14 -

Arnold Dix Consultant Technical Advice on East West Link 20-Feb-14 20-Feb-15 100 75 -

Aurecon Australasia Pty Ltd Engineering Advice on Penisnula Link 01-Jan-15 30-May-15 14 14 -

Bravo Consulting Group Career Transition Services 07-Jan-15 31-Dec-15 128 93 -

Clayton Utz Legal Advice 01-Jan-11 01-Jan-16 23,454 4,419 -

Collaborative ITS Consulting Pty Ltd Tolling Advisory Services 14-Apr-14 14-Oct-15 937 50 -

GHD East West Link Technical Adviser 03-May-13 03-May-15 14,500 1,143 -

Herbert Project Services Pty Ltd Advisory Services East West Link 25-Nov-14 30-Dec-16 178 44 -

IDM Partners Pty Ltd Land Advisory and Acquisition Services 07-Jul-14 07-Jul-16 739 241 -

Insurance Advisernet Australia Pty Ltd Insurance Advisory Services 01-Jul-14 31-Dec-14 15 14 -

Lovell Chen East West Link Permit Application Royal Park 07-Apr-14 30-Nov-14 60 26 -

MacDonald Project Consulting Pty Ltd Engineering Advice on East West Link 01-Jul-14 31-Oct-15 50 49 -

Moore Stephens Sydney Wealth Management Pty Ltd Financial Services 01-Mar-15 31-Mar-15 14 14 -

Munday Wilkinson Pty Ltd Engineering advice on East West Link 01-Feb-15 31-Mar-15 20 20 -

Pitcher Partners Probity Advisory Services 22-Apr-13 22-Apr-16 600 89 -

PricewaterhouseCoopers Commercial and Financial Advisory Services 01-Oct-10 30-Sep-15 16,000 1,936 -

Russell Kennedy Solicitors Legal Advice 01-Sep-14 30-Jun-15 100 56 -

Strategic Executive Solutions Pty Ltd BCP Consultancy Services 01-Sep-14 31-Dec-15 12 12 -

Taylor Cullity Lethlean Landscape Architect Urban DesigUrban Design Advice on East West Link 01-Jul-14 30-Sep-15 45 42 -

Workshop Architecture Pty Ltd Urban Design Advice on East West Link 01-Jul-14 31-Jan-15 30 27 -

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Accountable Officer's declaration

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12. Financial Statements: Operating Statement; Balance Sheet; Statement of Changes in Equity; Cashflow Statement; and Notes to financial statements

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