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Falls Creek RMB 2014 Annual Report????

Discussion in 'Falls Creek' started by Hully, Sep 7, 2015.

  1. Hully

    Hully One of Us

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    Over 10 months since the end of the 2014 Financial Year and still no sign of the FCRMB Annual Report. They have spent so long cooking these books that they must now be burnt to a crisp and unrecognisable. Surely the Chairman and the rest of the Board have to go.
    Maybe I'm looking in the wrong place.
     
  2. currawong

    currawong Old but not so Crusty Ski Pass: Gold

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    I heard that all the books being done by Belgravia were late.not sure if that is still the case though
     
  3. Hully

    Hully One of Us

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    Baw Baw appears to have been lodged with Parliament in May.
    Still no excuse....somebody needs to be held accountable for this failure and the two key architects of this outsourcing 'jumped ship' without ensuring the accounts were complete. This leaves the Chair and his board that approved it as the only ones remaining.
     
  4. Hully

    Hully One of Us

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    Only 19 days left of the current financial year and still no sign of last year's Annual Report on the public record........
     
  5. snowduck

    snowduck One of Us

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    The 2014 Annual Report was prepared. Somebody placed it on a table in the office, and evidently a dog came along and ate it
     
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  6. Hully

    Hully One of Us

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    ......the sound of crickets......sshhh, maybe if we all keep quiet, release a few more policy documents and masterplans nobody will notice a total lack of accountability for over $10M of public revenue. We have now moved into another financial year.....
     
  7. gaz35

    gaz35 One of Us Ski Pass: Silver

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    You could ask the Auditor General - but he has had his own issues
     
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  8. BillyKidd

    BillyKidd One of Us Ski Pass: Silver

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    Crickets getting louder now.
     
  9. Hully

    Hully One of Us

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    Well......it's out https://www.fallscreek.com.au/AnnualReport
    All of the covering letters etc are dated around 17 November 2015....12 1/2 months after the end of the financial year!
    Funnily enough it would appear that the passing of time has lead to confusion for the Chair of the Board as to which year he was actually writing his commentary for as he states "During the year the CEO, Mr David Herman, resigned." This actually occurred in December 2014, over a month after the end of the financial year that the report applies to which ended on October 31 2014.
     
  10. gaz35

    gaz35 One of Us Ski Pass: Silver

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    I understand that other RMB's 2015 financials are complete!!
     
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  11. Hully

    Hully One of Us

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    When the previous CEO, David Herman, left one of his final acts was an article in a local newsletter which was typical of his egotistical narcisstic style where he likened himself to Moses and talked about the legacy he was leaving. It would appear from this week's ministerial press release that it is a legacy of mismanagement.
    I genuinely feel for the current CEO having to clean up the mess but it is truly time for defense of Herman to end and Minister Neville to hold the Chair and board to account.
     
  12. gaz35

    gaz35 One of Us Ski Pass: Silver

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    From Border Mail - 21 December 2015


    A private operator has hit out at the Victorian government for leaving them in the dark about contract decisions involving three ski resorts.

    The government announced this month it would not renew its contracts with Belgravia Leisure for the day-to-day operation of Lake Mountain and Mount Baw Baw, which expire in April next year, after the Victorian Auditor-General raised concerns about their financial management.

    The two boards responsible for the resorts will be merged and take over operational management.

    Belgravia Leisure has also had a contract to manage the finances of the Falls Creek Resort since September, 2014, which expires in 2017.

    All three resorts have been under fire from the Victorian Auditor-General for a range of issues including poor cash flow management, not preparing for the end of financial year and not complying with government legislation.

    An audit snapshot tabled in parliament by the Auditor-General revealed audits of the three resorts identified 227 errors and adjustments which equated to $45.7 million of changes to their draft financial statements.

    The Auditor-General’s snapshot said the deficiencies in monitoring, oversight and accountability at the resorts stemmed from a lack of oversight of the provider.

    The Falls Creek financial report for 2014 was finished in November this year, more than nine months after it was due.

    The report stated investments had been overstated by more than $3 million in both 2012 and 2013.

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    Mr Cox said most issues raised by the Auditor-General related to years before their tenure.

    “We’ve only been there in some cases,” he said. “Our work at each of the two resorts we manage has seen an improved patronage, customer satisfaction and economic management of the Alpine Resorts, the results speak for themselves.”

    Belgravia chief executive Nick Cox said there had been no formal notification from the government their contracts would not be renewed.

    “We’re hoping to meet as soon as we can, we're ready and available,” he said.

    A spokeswoman for Environment, Climate Change and Water minister Lisa Neville said they had tried to contact Belgravia about the contract situation but couldn’t get in touch.

    The spokeswoman said the Falls Creek contract had not been impacted by the decision on the other two resorts and it’s future would be a matter for the Falls Creek Board.

    “Outsourcing operations at these resorts has not realised the anticipated financial sustainability and operational performance improvements,” she said.
     
  13. DbSki

    DbSki Old n' Crusty Ski Pass: Gold

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    When did Belgravia take over Lake Mountain and Baw Baw ?
     
  14. chriscross

    chriscross One of Us Ski Pass: Gold

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    Took over the running of LM in 2012, BB in 2013, I believe. Cue Charlie or Teckel, who will be well informed.
     
  15. DbSki

    DbSki Old n' Crusty Ski Pass: Gold

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    Odd that in only 2 or 3 seasons of taking over they did all this

    "An audit snapshot tabled in parliament by the Auditor-General revealed audits of the three resorts identified 227 errors and adjustments which equated to $45.7 million of changes to their draft financial statements.
    The Auditor-General’s snapshot said the deficiencies in monitoring, oversight and accountability at the resorts stemmed from a lack of oversight of the provider.
    The Falls Creek financial report for 2014 was finished in November this year, more than nine months after it was due.
    The report stated investments had been overstated by more than $3 million in both 2012 and 2013."

    Yet not a word from the AG about the previous long term mismanagement that resulted in it being taken over by Belgravia.
     
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  16. crackson

    crackson A Local Ski Pass: Gold

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    That reeks of speading the crimes of fc over two other resorts.

    They should detail the claims on resorts individually. Smells like a hatchet job on belgravia by mouth breathing peanuts.
     
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  17. Hully

    Hully One of Us

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    Less than 16 months after making their Accountant redundant as part of ex CEO David Herman's efficiency driven "restructure" FCRM are advertising for an Accountant. This "restructure" cost the resort hundreds of thousands of dollars in consultancy and redundancy costs and at this point nobody appears to be being held responsible. The Chair and his Board surely must go as they approved it all. The coverup of what was a vindictive process to get rid of good people that the CEO didn't like needs to end. Until somebody comes clean the festering stench of 2014 will remain over the organisation.
     
  18. FatBoyDave

    FatBoyDave One of Us Ski Pass: Silver

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    Seems a bit harsh to bring asset valuation issues prior to Belgravia's appointment, then hold them to trial by media.

    I visited Lake Mountain as a consumer in 2015 and found the resort to be clean and staffed by knowledgeable friendly staff. It was a pleasant experience and as such I'd recommend it to my peers. (It was more professional than a lot of other Vic based resorts and I went to all of them in 2015).

    Admittedly this experience has nothing to do with Belgravia's accounting functions or financial acumen but as a resort manager (from a consumer point of view), I thought they were doing an above average job.

    Not sure what sort of efficiencies or financial improvements the government was after in one season but I won't be sutprised if they end up being "commercial in confidence" and the government can't discuss what they are specifically.
     
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  19. gaz35

    gaz35 One of Us Ski Pass: Silver

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    outsourcing a full finance function is fraught with danger. accountability is lost. might save a few bucks short term, but will inevitably cost long term.
     
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  20. FatBoyDave

    FatBoyDave One of Us Ski Pass: Silver

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    Also a lot of business knowledge is lost. Still makes it easy to point the finger when something goes wrong.
     
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  21. Hully

    Hully One of Us

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    IMHO the valuation issue is just a smoke screen. The Victorian Auditors General Office (VAGO) were the auditing authority who signed off this and previous years annual financial reports for FCRM. The real issue for FCRM is that the board should NEVER have approved the CEO outsourcing ALL of the organisation's financial function to a facilities management company leaving the executive with ZERO people with accountancy skills/qualifications. It is time for the Chairman Mark Anderson to face the music, be accountable for these decisions and formally apologise to those who were lost their jobs and had their lives disrupted as a result of Herman's vindictive folly. They spent nearly $290k to one consultancy alone to 'rubber stamp' the CEO's plan to restructure a management team of 7 and only just over 12 months later are heading back to where they started. This is why we are paying about $50 per day resort entry. It's time for Minister Neville to sack them all and start again.
     
  22. Hully

    Hully One of Us

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    Unfortunately it was never really about cost saving and was never going to save cost.
     
  23. Hully

    Hully One of Us

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    Facilities management is what Belgravia do and they probably do it well, I cannot pass any judgement on how they ran LM or BB. The issue with FCRM is that they decided to outsource finance and gave the contract to an organisation who's core business was running swim centres, heath spas and golf courses....not an accounting firm!!!! They also retained no internal finance professional to provide oversight of what was happening with their finances. A major fail by the Chair and his Board. The executive after the 'restructure' consisted of 2 engineers, a lawyer and an environmental scientist.
     
  24. Hully

    Hully One of Us

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    Sorry, that should be $270K....interestingly when checking this number I noticed that in the 2013 Annual Report this project spend is listed as $167K for a project starting Mar 2013 ending Oct 2013 with nil approved project fee and nil expected future expenditure. In the 2014 Annual Report this project spend is listed as an additional $111.5K for the year for a project started Mar 2013 ending Jun 2014 with $268K approved project fee and nil expected future expenditure. This would indicate to me a total lack of project planning and approval process for over $1/4 million dollars of spend or a culture of treating the public purse and accountability with contempt. I would suggest that they were already spending some of that further $111.5K when reporting that there would be nil expected future expenditure. The existing Chair and Board would have approved all of this or failed to provide adequate board oversight.
     
  25. Hully

    Hully One of Us

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    Clearly Minister Neville has no intention to hold anybody on the FCRM Board accountable for the concerns that the Auditor General raised about the lack of financial control and oversight resulting from the outsourcing of their finance function to Belgravia. The two board members (Mark Anderson and Roger Kilby) who are listed in the annual reports as the two board members who are members of the Audit Committee (Kilby Chair of this committee) have not been held to account for the publicized issues with financial management, in fact they have been rewarded with reappointment to the FCRM Board as Chair and Deputy Chair respectively.

    The current Resort Management Board structure very clearly results in no accountability for the performance or lack thereof on the part of the board members. The responsible Minister clearly is not interested in holding them to account, and unlike elected representatives they have no accountability to those that they represent (the stakeholders).

    The whole situation is farcical, Minister Neville, Anderson and Kilby are just thumbing their noses at Falls Creek stakeholders, the Auditor General, Falls Creek skiers and visitors and all those with a passion and interest in the Victorian ski industry and clearly just taking the pi55. Anderson and Kilby will no doubt just dig their snouts deeper into the trough of this public purse funded gravy train for another 12 months comfortable in the knowledge that no matter what they do they will not be held to any level of account.
     
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  26. emkae

    emkae One of Us Ski Pass: Gold

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  27. Hully

    Hully One of Us

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    Rest assured that this forum is not the limit to me voicing concern. I do think that many on this forum, not all , have more knowledge of, passion for and concern about the ski industry than those in Government departments/authorities charged with running it.
    Have not yet looked to see if it is within scope of Vic Ombudsman's Office but will.
     
  28. DbSki

    DbSki Old n' Crusty Ski Pass: Gold

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  29. Hully

    Hully One of Us

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    Normally a good approach, problem is that a lot of the debacle occurred under the stewardship of the previous minister. They showed zero interest in the situation when in Government when it was raised with them by others.
     
  30. DbSki

    DbSki Old n' Crusty Ski Pass: Gold

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    Maybe so, but there are 2 sides to every story and best both are aired and not just left to Ministerial propaganda.
    Neville is a class act with her fingers in other pies, micro managing local issues on behalf of her green pals and pulling authority on issues that have nothing to do with state govt..
     
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  31. Hully

    Hully One of Us

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