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2016-17 ANNUAL REPORT ANNUAL REPORT 2016-17 i

WORKING TOGETHER FOR ANIMAL HEALTH We must continue to strengthen, enhance and evolve the national animal health system. © Australian Animal Health Council Ltd 2017 ACN 071 890 956 Animal Health Australia contact details: PO BOX 5116, Braddon ACT 2612 +61 2 6232 5522 aha@animalhealthaustralia.com.au animalhealthaustralia.com.au Design by Animal Health Australia Photos All images are from AHA unless credited otherwise

CONTENTS ABOUT AHA OUR MEMBERS OUR PEOPLE BOARD OF DIRECTORS FROM THE CHAIRMAN FROM THE CEO FINANCIAL OVERVIEW PROJECTS OVERVIEW KEY ACHIEVEMENTS AHA STRATEGIC PLAN 2015-2020 AUSTRALIAN AGRICULTURAL LANDSCAPE MONITORING AND EVALUATION JOURNEY COMMITTEE MEMBERSHIP STRATEGIC PRIORITY ONE STRATEGIC PRIORITY TWO STRATEGIC PRIORITY THREE STRATEGIC PRIORITY FOUR CORPORATE GOVERNANCE FINANCIAL STATEMENTS ABBREVIATIONS 1 2 3 4 6 8 10 12 14 16 18 20 46 49 55 59 69 78 81 104

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ABOUT AHA OUR ROLE A crucial function that AHA provides is to be a conduit facilitating trust and cooperation between industry and government on animal health matters. The AHA model supports negotiation and discussions between parties to generate sustainable change whilst also maintaining goodwill. AHA allows Members to share ideas, develop joint positions and policy and provides a forum for different perspectives that can result in a common voice. Animal Health Australia (AHA) works in partnership with our Members and other stakeholders to keep Australia free of new and emerging diseases and to improve animal health, strengthen biosecurity, enhance market access and foster the resilience and integrity of the Australian animal health system. AHA is a not–for–profit public company that facilitates innovative partnerships between governments, major livestock industries and other stakeholders to protect animal health and the sustainability of Australia’s livestock industry. OUR VISION A resilient Australian animal health system through effective partnerships, known for its integrity, and recognised nationally and internationally. OUR MISSION To assist our Members and partners to enhance, strengthen and protect animal health and the sustainability of Australia’s livestock1 industries. As a service and Member–oriented enterprise, AHA strives to model five key behaviours: OUR VALUE 1 • Innovation and excellence • Leadership through collaboration • Integrity and commitment • Making a difference • Commitment to our people 1 For AHA purposes, livestock are animals kept for use or profit including any class of cattle, sheep, goats, pigs, horses (including mules and donkeys), poultry, emus, ostrich, alpaca, deer, camel or buffalo, and farmed aquatic species. ANNUAL REPORT 2016-17 1

OUR MEMBERS The key factor behind the success of AHA’s programs is the ability of Members to work together through partnerships to enable investments and outcomes that would never be possible if the parties operated alone. Members have a high level of involvement in the management of all activities and have formal input to the development of company annual and strategic plans. AHA has 33 Members spread across four categories: • Australian Government, state and territory governments • Livestock industries • Service providers • Associate Members Australian Government • Australian Government Department of Agriculture and Water Resources State and Territory Governments • The State of New South Wales • The State of Queensland • The State of South Australia • The State of Tasmania • The State of Victoria • The State of Western Australia • The Australian Capital Territory • The Northern Territory Livestock Industries • Australian Alpaca Association Limited (AAA) • Australian Chicken Meat Federation Inc. (ACMF) • Australian Dairy Farmers Limited (ADF) • Australian Duck Meat Association Inc. (ADMA) • Australian Eggs • Australian Horse Industry Council (AHIC) • Australian Lot Feeders’ Association Inc. (ALFA) • Australian Pork Limited (APL) • Cattle Council of Australia Inc. (CCA) • Equestrian Australia Limited (EA) • Goat Industry Council of Australia Inc. (GICA) • Harness Racing Australia Inc. (HRA) • Sheepmeat Council of Australia Inc. (SCA) • WoolProducers Australia Limited (WPA) Service Providers • Australian Veterinary Association Limited (AVA) • Commonwealth Scientific and Industrial Research Organisation (CSIRO) Associate Members • Australian Livestock Export Corporation Limited (LiveCorp) • Dairy Australia Limited (DA) • Meat & Livestock Australia (MLA) • National Aquaculture Council Inc. (NAC) • Racing Australia Limited (RA) • Veterinary Schools of Australia and New Zealand Inc. • Wildlife Health Australia (WHA) • Zoo and Aquarium Association Inc. 2 ANNUAL REPORT 2016-17

OUR PEOPLE SKILLS Strategic planning and policy development Work health and safety Monitoring and evaluation E-learning development and design Information technology Graphic design, social media, photography, marketing and advertising, event management Emergency response and preparedness Facilitation QUALIFICATIONS Agriculture and veterinary science and aquatic veterinary studies Economics, accounting and administration management Communications Training and assessment Business management, leadership, company directorship and entrepreneurship Project and financial management Veterinary public health management AHA prides itself on maintaining a work environment that supports and enhances the abilities of staff, fosters collaboration and encourages innovation. AHA’s success is dependent upon its dedicated team applying their diverse range of skills and qualifications to develop and achieve agreed outcomes. TRAINING AHA prioritises staff development and strives to promote and sponsor training. This year AHA staff received training in: • anti-bullying awareness • company directorship • CPA, MYOB and payroll • editing and proofreading • first aid • leadership and management • learning and adaption • management and project planning • Microsoft Office Suite • monitoring and evaluation • social media • stakeholder engagement • veterinary services • work health and safety. ANNUAL REPORT 2016-17 3

BOARD OF DIRECTORS AHA’s Board comprises seven non-executive directors selected on the basis of complementary skill sets and appointed by Members. The primary role of the Board is to set and monitor the implementation of the company’s strategic direction and establish goals by which the achievement of this may be measured. The November 2016 Annual General Meeting (AGM) saw us farewell and acknowledge the substantial contributions of Dr Bill Darmody and Professor Martyn Jeggo after being members of our Board for four and eight years respectively. We also welcomed three new Board members - Ms Paula Fitzgerald, Ms Michelle Gorman and Dr Len Stephens. From L-R: Mr David Palmer, Ms Michelle Gorman, Dr Len Stephens, Mr Peter Milne, Ms Paula Fitzgerald, Dr Bruce Christie and Ms Sharon Starick.

2016-17 AHA DIRECTORS Mr Peter Milne – Chair Dr Bruce Christie Dr Bill Darmody (until Nov 16) Ms Paula Fitzgerald (appointed Nov 16) Ms Michelle Gorman (appointed Nov 16) Professor Martyn Jeggo (until Nov 16) Mr David Palmer Ms Sharon Starick Dr Len Stephens (appointed Nov 16)

FROM THE CHAIRMAN Peter Milne, A.M In this year’s Annual Report I’m going to talk about our people right up front, so it’s clear and unambiguous that our people are at the heart of this organisation. AHA’s Members, the executive team, staff and the Board together constitute AHA and I have appreciated the goodwill of each of these groups throughout the year. Their dedication has ensured that the occasional issues that arose were quickly resolved and helped AHA largely deliver on the commitments in the 201617 Annual Operating Plan (AOP). With the myriad of interactions we have with each other, the shared vision and the professionalism of our people is regularly on display and the comradery emerges easily. AHA’s Members play a big part in the success of AHA through their valued contribution to our planning processes by helping determine what we do and how we fund our activities. AHA is one of the most consultative organisations I know, and it is certain to remain that way into the future, given the benefits which have flowed from the practice over time. During the year, AHA made a greater effort to induct and mentor new people in the Members group, to ensure they were quickly able to contribute at the Members’ Forums and other meetings, benefitting their organisations as well as AHA. The diversity of views, combined with the willingness of people to make decisions for the common good, ensured Members’ Forums continued to provide a valuable opportunity for organisations in the livestock biosecurity system to develop consensus on difficult issues. In July, the Board worked with the executive management team and staff in the Reflections Workshop, which was all about the monitoring and evaluation (M&E) process that Kathleen Plowman, AHA CEO, has driven through the company. A couple of things happened that day; firstly, I had been a bit of a closet M&E sceptic and I became an M&E believer. I suddenly ‘got it’ and appreciated the value of the model in use. 6 “Progress with delivering future financial sustainability to AHA is going to be much more challenging and yet it is arguably the most important thing we can do...” Secondly, and more importantly, the Reflections Workshop reinforced to myself and other directors how committed our people are to delivering outcomes and value for our Members and for the livestock industry. It’s not just about the task at hand! The M&E process put the culture and enthusiasm of our staff clearly on display, as well as highlighting the progress with programs over the year (and the areas that needed a tweak!) At the tail end of 2016, the Board acknowledged the performance and achievements of Kathleen Plowman in her first term in office, by offering to renew her CEO contract. We were thrilled by her acceptance of our offer and note the continuation of significant progress driven by Kathleen and her executive team in the period since, and her key role in creating the organisational culture I mentioned earlier. The last group of people I want to discuss are our directors. In November 2016, at the AGM, three new directors were appointed to the AHA Board and they have settled into their role well. We have the most diverse Board we have ever had and I’d like to acknowledge the individual skills and experience of the Board members and the value their collective contribution has added to AHA over the year. Towards the end of 2017 there will be an internal review of Board performance, with the intention of determining any further enhancements to our activities that can be adopted. ANNUAL REPORT 2016-17

While it seems like yesterday we were beavering away together developing the AHA Strategic Plan 2015-2020 (the Plan), we are now almost at the halfway point. My comments on how we are travelling against the Plan are based on the opportunities I’ve had over the year to be aware of progress, but have more of a ‘gut feel’ basis than the precision and detail found in AHA’s M&E reporting. In developing the Plan, Members clearly wanted AHA to continue to deliver programs on emergency animal disease response agreements, enhance preparedness and response capability and strengthen biosecurity, surveillance and animal welfare. These areas are covered in the Plan in strategic priorities one through to three and provide the strongest justification for AHA’s existence. While there are some areas such as surveillance receiving additional focus, my view is that AHA is well positioned to achieve the outcomes spelt out in the Plan for these priorities by 2020. The quantum change from 2015 to today is in the delivery of these programs. The implementation of one of the enabling strategies from strategic priority four, in particular “Manage the company effectively, using best practice systems and processes, and deliver ongoing business efficiencies” – has had a profoundly beneficial impact on how we achieve priorities one to three. Priority four in the Plan is about Member value, organisational performance enhancement and sustainable resourcing. I mentioned one of the strategies above, but other strategies under this priority are well advanced too, including in the areas of information technology and human resources. Other strategies surrounding technological systems and future financial sustainability have had plenty of thought and preliminary actions but substantive progress is for the period ahead. The technological systems area is comparatively straightforward and the greatest difficulty is with funding rather than what needs to be done. Progress with delivering future financial sustainability to AHA is going to be much more challenging and yet it is arguably the most important thing we can do to really differentiate AHA in 2020 from AHA in 2015. It’s the critical key to allowing AHA to become the organisation Members planned for it to be two and a half years ago. ANNUAL REPORT 2016-17 AHA has made good progress over the year and indeed for the last couple of years and we are well positioned, with the time available, to ultimately deliver on the Plan. I’m not suggesting it will be easy, much of it is a stretch, but on recent performance I am very optimistic we will get there in 2020. My thanks to everyone for what has been achieved and I look forward to working with Members and the AHA team on the opportunities and challenges that lay ahead. CHAIRMAN KEYPOINTS 16-17 1 2 3 4 5 6 Refined induction process for new people and Members Value and appreciation of the M&E model and how committed our people are to our Members Kathleen Plowman accepting a renewal of her position as CEO Three new directors welcomed to the Board Halfway through the Strategic Plan 2015-2020 and well positioned for successful delivery Future financial sustainability is the most challenging yet significant delivery 7

FROM THE CEO Kathleen Plowman This Annual Report marks the second year of the Plan’s journey. In 2016, as part of our M&E process, AHA evaluated its progress in implementing the Plan by commissioning an independent provider to undertake a regular, repeated survey of our Members. Designed to help us better understand how effective we are in performing our role, the survey measured the extent AHA has delivered value to our Members and what improvements could be made. Overall, participants in the research painted AHA’s role, delivery of value and performance in a very positive light and reflected the high degree of engagement and desire of Members to help AHA achieve its goals (see Members Evaluation Summary https://www.animalhealthaustralia.com. au/wp-content/uploads/Attachment-B_MembersEvaluation-Report_Summary.pdf). The findings reveal that AHA is tracking well and although there were a number of identified areas and ideas for improvement, no fundamental changes are currently needed. Members believe that the concept of AHA is a worthy cause and is a genuine attempt to enlist the support of all stakeholders to protect and promote animal health; that AHA provides the bridge that facilitates trust and cooperation between industry and government on animal health matters. Crucial to achieving this, is the oft-mentioned concept of goodwill encompassing competence, acceptance and expertise. This goodwill ensures sufficient trust and cooperation to broker the sometimes difficult but necessary conversations between Members and to facilitate partnerships and opportunities among Members and key stakeholders who may view an issue from a different standpoint. Unsurprisingly, despite the shared interest in AHA, Members’ expectations, familiarity, level of involvement, attitudes and the perceived value they receive from their membership varies considerably 8 “The coming year continues to be demanding and challenging but I am confident that together we can continue to build on our successes and learnings, because together we can achieve more.” depending on the nature of their organisation. Nevertheless the Monitoring and Evaluation Report 2016-172 clearly shows that over the last two years we have achieved a number of the Plan’s key outcomes; of the 77 indicators, 41 (53%) are currently above their 2016-17 target, 27 (35%) are on target and 9 (12%) are not on target. Critically, this snapshot enables us to learn – to reflect and review - and adjust our focus and resources accordingly to improve our performance, results and value-add in consultation with the project investors and our Members. The past year has been a rewarding one for AHA and our Members, with the delivery of a number of successes that positively impact on our biosecurity system. Key highlights include: • Farm Biosecurity Project awarded the 2017 Australian Biosecurity Award • AHA celebrating its 20th birthday and 25 years of AUSVETPLAN with Members and industry champions alike • implementation of an M&E process and successful completion of a full 12 months of reporting 2 Animal Health Australia Annual Report 2016-17, page 20 ANNUAL REPORT 2016-17

• Members unanimously adopting changes for AHA’s constitution • performance of AHA meeting Members requirements, as reflected in Member survey and other feedback mechanisms • all 15 industry Members having a biosecurity manual in place • a new version of the Emergency Animal Disease Response Agreement (EADRA) published three months ahead of schedule. My sincere thanks to AHA’s Members for their commitment and efforts which are reflected in our successes. I also thank the Board, executive team and staff for their continued support and confidence; their professionalism, enthusiasm and dedication to AHA and our Members is unwavering. The company and staff are now well prepared to progress to the next stage of AHA’s strategic journey. Internal changes have led to the development of more efficient systems and processes, establishment of strong M&E practices, improved services, reframed communication and an enhanced company culture - all providing the foundation to achieve the remaining outcomes of the Plan. Over the next three years, AHA will be focusing on increasing its leadership, influence and nimbleness in the Australian animal health system, to establish itself as the ‘go-to’ organisation for information, expertise and project initiatives on biosecurity, surveillance and emergency animal disease (EAD) information and training. AHA will also continue its efforts to improve service innovation and systems to evolve its collaborations and relationships, to investigate business opportunities for sustainability and to enhance the animal health biosecurity system, all the while continuing to strengthen our much valued existing partnerships ensuring maximum leverage. The coming year continues to be demanding and challenging but I am confident that together we can continue to build on our successes and learnings, because together we can achieve more. 10 NEW PROJECTS IN 2016-17 3% 17% PROJECTS NOT STARTED (Due to funds not obtained/projects reprioritised by funders) 5% PROJECT DELIVERABLES STILL IN PROGRESS $1.7m ADDITIONAL PROJECT REVENUE SOURCED 77% PROJECT DELIVERABLES MET PROJECTS STOPPED PROJECT SUMMARY 16-17 2.5% INCREASE IN CORE PROJECT FUNDING FOR THE 2017-18 AOP ANNUAL REPORT 2016-17 9

FINANCIAL OVERVIEW Tony Marks Executive Manager Corporate and Member Services AHA’s operating result was a surplus of $1.8 million in 2016-17 against a budgeted deficit of $0.26 million. This better-than-budget outcome has resulted equally from additional income of $1 million over budget and expenditure being $1.1 million less than budget. The operating surplus is reflected in increased cash holdings and increases in industry levy Member reserves and core reserves. 1 Total income was $15.5 million, exceeding the AOP budget of $14.5 million by $1 million, predominantly as a result of several key factors. Firstly, the recognition of the carrying value of Livestock Biosecurity Network (LBN) net assets of $0.45 million for the 51% shareholding adopted by AHA. Secondly, due to the recognition of $0.33 million income for long-completed projects previously held as unearned revenue. Thirdly, $0.22 million for a range of additional revenues for gate signs, training resources, AHA facilities hire for events and subscriptions and grants for private veterinarian access to training and accreditation. Levy income overall was in line with budget at $6.9 million, although individual Members’ results varied with grass-fed cattle, dairy and goat industry levies declining and sheep and wool industry levies improving. EADRA levies received for laying and meat chicken producers were slightly better than budget at $0.47 million, as the levy for laying chicken producers continued for a short period after the entire amount of the Commonwealth’s underwriting of the 2012-13 avian influenza outbreaks had been collected. Interest income of $0.34 million was better than budget of $0.3 million due to the invoicing of, and payment by Members early in the year and tight management of cash and investment accounts. “AHA’s financial position has been strengthened by the operating result...” 2 Total expenditure was $13.7 million, being $1.1 million below budget. A number of projects have deferred deliverable milestones or delivered efficiencies throughout the year, including sheep production conditions ($0.4 million) where the Research & Development (R&D) component of the project was not undertaken by agreement; Transmissable Spongiform Encephalopathy Freedom Assurance Program (TSEFAP) ($0.4 million) where surveillance costs are not passed on in full by two jurisdictions; Biosecurity Research Development & Extension (RD&E) ($0.3 million), where a new strategy is to be developed prior to implementation; and National EAD training ($0.1 million) as a result of a lack of staff training resources. There were six projects which did not commence for various reasons, increasing the under-budget outcome ($0.3 million). Offsetting this was some expenditure incurred for the ten additional projects that were not in the AOP or budget ($0.4 million). AHA’s financial position has been strengthened by the operating result with the balance sheet showing equity at $16.4 million, up from $14.6 million in 2015-16. This total AHA equity balance is attributable to two distinct sources – ‘core’ operating surpluses since AHA’s inception of $5.7 million and industry levies that have exceeded industry expenditure by $10.7 million. The individual levy reserves are maintained according to industry advice to AHA. AHA’s total assets of $25.1 million is comprised of $19.3 million in cash and investments. This balance 10 ANNUAL REPORT 2016-17

is invested across a minimum of two ‘AAA’ rated banks and products with an appropriate spread of maturity dates to meet AHA’s planned and unplanned requirements. FINANCIAL OVERVIEW 16-17 AHA’s liabilities of $3.5 million includes GST and accounts payable of $1.3 million which has increased in line with AHA policy to pay invoices when due, rather than immediately upon receipt of invoice and accruals of $2.2 million. The substantial amount of accrued expenses relates to the sample collection and laboratory costs for National Arbovirus Monitoring Program (NAMP) and TSEFAP where work undertaken for the disease cycles in the financial year isn’t finalised until several months after the end of the cycle (consistent with prior years). Provisions for annual and long service leave and salary related payables amounts to $0.37 million. Unearned revenue of $4.8 million represents the balance of cash received by AHA, primarily from government Members, for which project milestones have not yet been delivered, and therefore not yet recognised as revenue in the income statement. AHA’s net assets dichotomy of ‘core’ ($5.7 million) and industry levy Member ($10.7 million) can also be considered separately in terms of their asset and liability elements. The industry levy Member equity reserve is comprised solely of current asset – cash of $10.7 million. On the other hand, the core equity reserve is comprised of all the current and noncurrent asset and liability components. Notably this core equity can be expressed in net asset terms of $3.6 million antigen banks (at cost), $0.3 million office equipment, and $1.8 million cash. AHA’s core reserve, contingency, and treasury policies ensure AHA operates with fiscal prudence. Members acknowledged at the March 2017 Members’ Forum the Board’s intention to maintain and grow the real value of the core cash reserve through the retention of interest (at a minimum). 3 Core subscriptions increased for the first time in six years in 2016-17, by 6% upon the recommendation of Members at the November 2015 Members Forum, at which it was highlighted the importance of properly resourcing AHA’s core programs. ANNUAL REPORT 2016-17 11 1 $15.5m TOTAL INCOME $1.6m $ SERVICE LEVEL AGREEMENTS 2 $13.7m TOTAL EXPENDITURE $1.8m $ SURPLUS 3 $4.2m CORE SUBSCRIPTIONS 0.34m INTEREST INCOME 6.9m LEVY INCOME

PROJECTS OVERVIEW CORE 25 SPECIAL 40 OUTSIDE OF AOP 10 12 ANNUAL REPORT 2016-17

PROJECTS OUTSIDE 16-17 AOP* Evaluation of Training of Veterinarians in EAD Surveillance • Conducted an evaluation of the training needs of veterinarians in respect of EAD surveillance [DAWR] Livestock Biosecurity Network Management Services • Livestock Biosecurity Network is a subsidiary company of AHA that works closely with producers to provide tools and information which help safeguard biosecurity, animal health and welfare, productivity, market access and food safety [LBN Pty Ltd] Agreement to manage funds for Commonwealth projects on behalf of NSW Department of Primary Industries • Supporting NSW Department of Primary Industries with the Greater Sydney PeriUrban Biosecurity Program [NSW DPI] Exercise Athena - International Animal Health Emergency Reserve exercise • This exercise promoted awareness and support for the IAHER arrangement which allows signatory countries to share personnel in an EAD event [DAWR] Exotic Disease Preparedness, Evidence of Absence • Project engages private veterinary practitioners to provide evidence of absence of exotic pig diseases [APL] Animal Health Alerts Smartphone App Prototype • Developing and piloting a smartphone app for enhancing surveillance [DAWR] Biosecurity Emergency Response Training and Assessment Materials • Developing a set of nationally consistent training materials for the biosecurity response qualifications [Commonwealth, state & territory governments] Marine Pest Emergency Response Exercise • Development of an exercise program for invasive marine pests Aquatic Industry Liaison Officer • Build partnerships between aquatic industries, science organisations and governments to improve biosecurity, EAD preparedness and response, surveillance and diagnostic capabilities for aquatics across northern Australia [DAWR] *The 10 projects developed outside the 16-17 AOP were conducted in addition to our core and special projects at the request of our Members. ANNUAL REPORT 2016-17 13 [DAWR] Publication on Australia’s Tuberculosis Freedom • Funded a peer reviewed publication evaluating Australian surveillance for freedom from bovine tuberculosis [MLA]

KEY ACHIEVEMENTS Contracted to provide services for a major foot-and-mouth disease (FMD) research project JUL 2016 Implementation of an M&E framework AUG 2016 Celebrated AUSVETPLAN’s 25th birthday Delivered liaison - livestock industry Distributed 800 function training to sheep and poultry industries Phase 2 of FMD Risk Management Project completed MAR 2017 Awarded the 2017 Australian Biosecurity Award maggot sampling kits for SWF surveillance FEB 2017 Published annual NAMP Report 2015-16 Launched a revised APAV registration course Delivery of a national communications plan for Johne’s Disease (JD) Conducted AHA’s first aquatic EAD exercise APR 2017 14 Published Animal Health in Australia (AHiA) 2016 MAY 2017 ANNUAL REPORT 2016-17

Third five-year Livestock Biosecurity Network became a subsidiary of AHA Member survey undertaken SEP 2016 Celebrated AHA’s 20th birthday New version of EADRA was published review of EADRA undertaken OCT 2016 Major review of the response policy brief for Hendra virus Farm Biosecurity Project reviewed Exercise Sheepcatcher II report delivered DEC 2016 Conducted Exercise Hamlet - an internal EAD exercise NOV 2016 Contributed to Exercise Athena - an international EAD exercise 92,000 website visits in one month on AHA’s website Collected over 3,000 Facebook followers AgSOC endorsed NLIS Cattle and NLIS Pig Standards JUN 2017 ANNUAL REPORT 2016-17 Adoption of constitutional changes and MLA endorsed as an Associate Member 15

AHA STRATEGIC PLAN 2015–2020 STRATEGIC JOURNEY The AHA Strategic Plan 2015–2020 focuses on service innovation to enhance and evolve collaboration and engagement with our Members and stakeholders to leverage our performance and enhance our services and delivery to maximise the return on investment for our Members. During this second year of the Plan we continued to focus on improving organisational strength, innovation and communications to enhance collaborations and relationships with all our Members and stakeholders. AHA has already achieved a number of the Plan’s key outcomes as reflected in our M&E summary report3 and are well equipped to progress to the next stage of the strategic journey. For the next three years AHA will focus on its capability to lead and influence within the biosecurity, surveillance, animal health and welfare, market access and EAD information and training sphere, for the benefit of our Members and to enhance the animal health system. We will also continue in our efforts to improve service innovation and systems, including the investigation of new business opportunities, whilst continuing to strengthen our valued existing partnerships. STRATEGIC PRIORITY 1 Effectively manage and strengthen Australia’s EAD response arrangements through successful partnerships with Members. • Nationally agreed response framework and supporting tools. • Enhanced EAD preparedness and response arrangements through improved collaboration between Members. • All signatories to the Deed are Members of AHA. 3 Animal Health Australia Annual Report 2016-17, page 20. 4 Biosecurity is the management of risks to the economy, environment and the community, of pests and diseases entering, emerging, establishing or spreading. 16 ANNUAL REPORT 2016-17

STRATEGIC PRIORITY 2 Enhance the EAD preparedness and response capability of AHA and its Members. • Consistent and useable EAD preparedness and response training, resources and support. STRATEGIC PRIORITY 3 Strengthen biosecurity4 , surveillance and animal welfare to enhance animal health and support market access and trade. • Increased biosecurity awareness among livestock producers and within industry supply chains. • Increased partnerships with Members, Plant Health Australia (PHA) and R&D corporations. • Harmonised biosecurity and animal welfare arrangements delivering consistent outcomes. • Integrated animal health system based on improving policies and an animal health surveillance strategy in which national/international trading partners have confidence. • Enhanced national policies and strategies to address ‘one health’ issues. • Proven improvements in traceability in livestock. • Enhanced design and delivery of accessible training resources. • Raised awareness of training resources regarding roles and responsibilities in an EAD situation. STRATEGIC PRIORITY 4 Deliver Member value, organisational performance enhancement and sustainable resourcing. • Best practice corporate and program reporting, governance and management of operations. • Enhanced partnerships with PHA and other organisations. • Alternative and enhanced funding sources. • Full potential of human resources is realised. • Safe, healthy, positive and professional working environment. • Service delivery is modern, flexible and professional. ANNUAL REPORT 2016-17 17

AUSTRALIAN AGRICULTURE LANDSCAPE The Australian agriculture industry came from small beginnings, but has now grown to become an essential aspect of our economy – as is the booming aquaculture sector. 1788 2015 Tasmania accounted for 30% of Australia’s fisheries production8 Gross value of fisheries production was $2.8 billion8 Volume of farmed aquaculture products was 89,217 tonnes8 5 Year Book Australia 2001, 1301. 6 Year Book Australia 2001, 1301.0 7 http://www.abs.gov.au/ausstats/abs@.nsf/ProductsbyReleaseDate/20EA1F239F7D5B95CA257496001273F9 8 http://data.daff.gov.au/data/warehouse/9aam/afstad9aamd003/2015/AustFishAquacStats_2015_v1.0.0.pdf 9 Animal Health in Australia 2016. 10 http://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/7121.0Main%20Features312015-16?opendocument&tabname=Summary&prodno=7121.0&issue=2015-16&num=&view 11 http://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/7121.0Main%20Features12015-16?opendocument&tabname=Summary&prodno=7121.0&issue=2015-16&num=&view 18 ANNUAL REPORT 2016-17 Australia’s livestock began with five rabbits, seven horses, seven cattle, 29 sheep, 74 pigs, 18 turkeys, 29 geese, 35 ducks and 209 fowls5

480,000 hectares of land was used for crops and livestock numbers increased to 25 million6 1858 Total gross value of agricultural production was $38.5 billion7 2006 404,000 tonnes of wool was produced9 371 million hectares of land in Australia was for agricultural purposes10 2016 ANNUAL REPORT 2016-17 Total gross value of agricultural production was $56 billion,11 an increase of 45% More than 326 million eggs were produced across 6206 businesses9 Australian livestock has grown to 22.3 million beef cattle, 2.7 million dairy cattle, 67.5 million sheep and lambs9 19

MONITORING AND EVALUATION JOURNEY This year has seen the first full year of implementation of our M&E approach. Our four end-of-program outcomes, which align with our strategic priorities, have been closely monitored and evaluated to ensure we embrace a resultsbased culture, from which we can learn and grow. Throughout 2016-17 we have tracked our progress, reflected on our successes and weaknesses, made modifications to our business practices and reported our findings, leading to full accountability to our Members. FOUR END-OF-PROGRAM OUTCOMES PRODUCERS REDUCE DISEASE ENTRY ONTO FARMS 15 M&E INDICATORS* 47% 33% 20% Above target 20 On target Not on target PROMPT NOTIFIABLE OUTBREAK DISEASE DETECTION & EFFECTIVE EAD RESPONSE IN PLACE 19 M&E INDICATORS 58% 37% 5% *AHA’s M&E indicators are used to measure the company’s progress towards outcomes in key business areas, which are directly aligned with AHA’s broader strategic priorities. ANNUAL REPORT 2016-17

In addition to this, LBN staff work towards their M&E indicators that support biosecurity, food safety, livestock health and welfare, which complements three of our four end-of-program outcomes. OVERALL OUTCOMES 77 M&E INDICATORS 53% 35% 12% Above target On target Not on target NATIONAL SURVEILLANCE & ANIMAL HEALTH REPORTS ARE CONSIDERED ROBUST BY MEMBERS AND MARKETS NEW & ENHANCED PARTNERSHIPS & SUSTAINABLE PROGRAMS 10 M&E INDICATORS 40% 40% 20% ANNUAL REPORT 2016-17 33 M&E INDICATORS 58% 33% 9% 21

END OF PROGRAM OUTCOME PRODUCERS REDUCE DISEASE ENTRY ONTO FARMS What do we want to achieve? (Intermediate outcomes) How do we monitor this? (Monitoring indicators) 1.1 AHA’s contribution to strengthening biosecurity along the livestock supply chain meets the needs of Members 1. Producers & supply chain apply effective biosecurity (refer to LBN supporting outcomes on the final page) 1.2 Number and value of projects which address biosecurity in the livestock supply chain 1.3 AHA’s contribution to strengthening biosecurity on-farm meets the needs of Members 15/16 Baseline No baseline available 16/17 Target Member survey: “AHA's contribution to strengthening of biose the supply chain” - 3.4 (out of 5) 10 projects underway No baseline available 11 Member survey: “AHA's contribution to strengthening of biose farm” – 3.4 or above (o 2. Practice change on-farm 2.1 Percentage of producers that adopt biosecurity practice(s) resulting from contact with the Farm Biosecurity project 2.2 Number of Farm Biosecurity gate signs sold 2.3 Total Farm Biosecurity app downloads 3.1 Percentage of users opening Farm Biosecurity Newsletter 3. Increased awareness of biosecurity practices at the farm level (refer to LBN supporting outcomes on the final page) 3.2 Total number of subscribers to Farm Biosecurity Newsletter 3.3 Number of Farm Biosecurity Essentials video views 3.4 Number of Farm Biosecurity website views 3.5 Percentage of farm owners who have an understanding of biosecurity practices 225 total for 15/16 300 No data available (app published 2016) 42% (industry standard 20-25%) 919 4,553 105,128 45% (based on 2013 producer survey) NA 4,000 150,000 56% 100 50% 49% 40% Above target 22 On target Not on target ANNUAL REPORT 2016-17

o e 4 o e (o Primary Strategic Priority Source Strategic Priority Three: Strengthen biosecurity, surveillance and animal welfare to enhance animal health, and support market access and trade PRODUCERS REDUCE DISEASE ENTRY ONTO FARMS 15 M&E INDICATORS* 47% 33% 20% 16/17 Actuals o the ecurity along 4 or above 11 o the ecurity on(out of 5) Member survey: 3.3 “On farm biosecurity planning there’s a bit to do there” Additional activities: • Widespread adoption of biosecurity planning due to J-BAS and Livestock Production Assurance (LPA) requirements • Over 200 phone calls recorded by staff members (conservative estimate) for biosecurity planning requirements of J-BAS and LPA • Winner 2017 Biosecurity award Not achieved: According to the 2017 Producer survey, the most popular reason producers did not undertake an action was “no need/no problem”. This indicates the Program needs to focus on reminding producers about biosecurity threats and the danger of complacency. 987 Additional activities: • Significant gate sign increase in 4th quarter driven by J-BAS/JD in cattle campaign 1147 44% NA 2,000 annually 5,000 total 45% 1,241 7,189 208,611 Not achieved: Awareness had increased from 2013 but did not meet expectations. More work in promoting the Program more broadly is required. 3,000 total 10,000 annually 210,000 annually 60% 85% 3,000 annually 15,000 total 50% 10,000 total 13,000 annually 250,000 annually 80% Member survey: 3.1 “I’m just not seeing the biosecurity jigsaw nationally… we’re all working independently” How did we track? 17/18 Targets 3.5 or above (out of 5) $2m 3.5 or above (out of 5) 2020 Targets 4.0 or above (out of 5) $3.5m 4.0 or above (out of 5) *AHA’s M&E indicators are used to measure the company’s progress towards outcomes in key business areas, which are directly aligned with AHA’s broader strategic priorities. ANNUAL REPORT 2016-17 23

END OF PROGRAM OUTCOME PRODUCERS REDUCE DISEASE ENTRY ONTO FARMS What do we want to achieve? (Intermediate outcomes) How do we monitor this? (Monitoring indicators) 4.1 Percentage of Industry Members with a biosecurity plan and/or strategy in place 15/16 Baseline 100% - All 15 Industry Members have a biosecurity manual in place 16/17 Target All 15 Industry Membe a biosecurity manual i manuals to be reviewe 4.2 Percentage of Industry Members with biosecurity standards incorporated into a compliance/verification scheme/checklist 33% (5 out of 15) of Industry Members have biosecurity standards included into a verification system 4. Members & partners disseminate biosecurity messages (refer to LBN supporting outcomes on the final page) 87% (13 out of 15) of Industry Members have a verification system in place 4.3 Percentage of Government Members with a biosecurity statement/strategy in place 67% (6 out of 9 Government Members) 78% (7 out of 9) No target set 4.4 Percentage of Members disseminating biosecurity standards/plans/checklists on their websites No baseline available No target available Above target 24 On target Not on target ANNUAL REPORT 2016-17

e i e 16/17 Actuals How did we track? ers have in place, ed 100% • National Poultry Manual (2009; under review) • Chicken Meat Manual (2010; under review) • Horse Venue Work Book (2010) • Egg Manual (2015) • Pig production Manual (2013) • Grazing Reference Manual (2012) • Feedlot Manual (2013) • Duck Production Manual (2010; under review) • Zoo and Aquarium Manual (2011; under review) 33% 17/18 Targets 100% 2020 Targets 100% 60% 75% 78% • ACT (2016-26) • NSW (2013-21) • NT (2016-26) • QLD (2017-22) • SA (2013-16) • TAS (2013-17) • WA (2015-25) 100% 100% 55% - 17/31 Members (who have websites) are disseminating biosecurity standards on their websites • AAA • ACMF • Australian Eggs • AHIC • APL • AVA • DA • DAWR • GICA • MLA • NSW • QLD • SA • TAS • VIC • WA • WPA 65% 90% *AHA’s M&E indicators are used to measure the company’s progress towards outcomes in key business areas, which are directly aligned with AHA’s broader strategic priorities. ANNUAL REPORT 2016-17 25

END OF PROGRAM OUTCOME PROMPT NOTIFIABLE OUTBREAK DISEASE DETECTION & EFFECTIVE EAD RESPONSE IN PLACE What do we want to achieve? (Intermediate outcomes) How do we monitor this? (Monitoring indicators) 5.1 EADRA and required guidance documents are updated annually 5.2 AUSVETPLAN documents are fit for purpose 15/16 Baseline EADRA last updated 09-09-16 (version no. 16/02) Not all AUSVETPLAN documents are perceived as fit-for-purpose 16/17 Target Formal processes to be implemented to ensure new version will be published in early 2017-18 Secure resources to address currency challenges Identify mechanisms to support annual monitoring of underpinning information (e.g. science, OIE Code changes) 5.3 Endorsed AUSVETPLAN documents are readily available on the AHA website 5. Australia’s EAD response arrangements are effective & efficient 5.4 Emergency disease vaccine banks (FMD and anthrax) are fit for purpose Available on AHA website in PDF format; inconsistent and/or outdated templates Banks available for use. FMD strains and quantities of antigens based on advice from Vaccination Expert Advisory Group and Vaccine Contract Advisory Committee in 2013 and 2014 5.5 AHA’s contribution to the effective management and strengthening of Australia’s emergency response arrangements 5.6 Emergency disease vaccine banks (FMD and anthrax) manufacture, storage and delivery arrangements are in place No baseline available Identify response function needs from AUSVETPLAN Update disease strategy and response policy brief templates Banks are available for use 16/17 Actu Forma EADR Achie been Achie Addit • New • 75% com Achie respo Achie Achie Member survey: “AHA’s contribution to the effective management and strengthening of Australia’s emergency response arrangements” - 3.4 or above (out of 5) Manufacture arrangements in place Supply and delivery arrangements documented but not tested Examine supply and delivery arrangements (permits and processes) in preparation for updating and testing Achie Memb Above target 26 On target Not on target ANNUAL REPORT 2016-17

17 u ma R e e t w % m e o e e b e Primary Strategic Priority Source Strategic Priority One: Effectively PROMPT NOTIFIABLE OUTBREAK DISEASE manage and strengthen Australia’s emergency animal disease response arrangements through successful partnerships with Members Strategic Priority Two: Enhance the EAD preparedness and response capability of AHA and its Members 58% 37% 5% 17 uals mal process for variations and amendments to the EADRA are in progress RA published three months early eved – Members endorsed additional resources, and mechanisms have established ready for implementation in 2017-18 eved – mechanisms identified ready for implementation in 2017-18 tional activities: w baselines established – 30% AUSVETPLAN updated in past 5 years % minor reviews completed in less than 2 years; no major reviews mpleted eved – information mapping consultancy completed that identifies onse function needs eved – templates updated eved – banks are available for use and verified annually by manufacturer 80% DSMs & RPBs in new templates Enterprise manual templates updated Banks are available for use with appropriate strains and quantities of antigens Anthrax consultation re future requirements (e.g. number of doses) ber survey: 4.1 4.0 or above (out of 5) FMD – new contractual arrangements and vaccine bank in place and ready for use Anthrax – to be advised following consultation with funding parties 4.0 or above (out of 5) How did we track? 17/18 Targets New version published October 2017; Recommitment by all Signatories following 3rd 5 year review 50% updated in past 5 years 80% of disease strategy manuals (DSMs) & response policy briefs (RPBs) annually monitored 2020 Targets New version published October 2020 100% updated in past 5 years 100% of DSMs & RPBs annually monitored 100% enterprise manuals updated DETECTION & EFFECTIVE EAD RESPONSE IN PLACE 19 M&E INDICATORS* 100% DSMs & RPBs in new templates eved - supply and delivery exercise in preparation Supply chain exercise conducted Exercise findings improve processes for FMD vaccine delivery Anthrax - Negotiate extension of supply agreement under clause 3 FMD – new contractual arrangements and vaccine bank in place and ready for use Anthrax – to be advised following consultation with funding parties *AHA’s M&E indicators are used to measure the company’s progress towards outcomes in key business areas, which are directly aligned with AHA’s broader strategic priorities. ANNUAL REPORT 2016-17 27

END OF PROGRAM OUTCOME PROMPT NOTIFIABLE OUTBREAK DISEASE DETECTION & EFFECTIVE EAD RESPONSE IN PLACE What do we want to achieve? (Intermediate outcomes) How do we monitor this? (Monitoring indicators) 6.1 Signatories meet their EADRA obligations for managing an EAD 15/16 Baseline Biosecurity Plans and statements in place for all signatories but no public reporting or review No coordinated risk mitigation framework 6.2 AHA’s contribution to the enhancement of the response preparedness capabilities of our Members 6.3 Members have ready access to training No baseline available 16/17 Target Proposal for risk mitigation framework* endorsed at EADRA workshop (*Covers biosecurity plans & statements, normal commitments, national animal health standards & EAD training) Member survey: “AHA’s contribution to the enhancement of the response preparedness capabilities of our Members” - 3.4 or above (out of 5) 2 channels delivering training needs (F2F and online) 6. The EAD preparedness & response capability of AHA & its Members is enhanced 46 Members received Consultative Committee on Emergency Animal Diseases (CCEAD) or National Management Group (NMG) training; 21 Industry Members received industry liaison training 1 exercise (Apollo) with 46 Rapid Response Team (RRT) attending 158 completed the EAD Foundation online course 6.4 Personnel who receive training understand policies, legal requirements and roles and responsibilities for an EAD response 90% CCEAD/NMG participants indicated preparedness to serve on CCEAD/NMG had increased 72% (CCEAD and NMG) indicated the EAD foundation online course was very useful 2 channels of delivering training needs 20 Members receive CCEAD or NMG training 20 Industry Members receive industry liaison training (from at least two different industry member organisations) Hold 1 exercise with majority of the RRT attending 120 90% of participants indicate a significant increase in understanding 75% of participants indicate the EAD Foundation online course is very useful Achie Achie Achie Memb 16/17 Actu Achie Achie Achie 91% 90% Addit Exerc • 97% bio • 79% resp 6.5 The participation and cooperation of government and Industry Members either in a simulated EAD response exercise and/or by review of an actual EAD response is improved 28 Exercise observations & learnings No EAD responses Exercise Apollo 2016; all jurisdictions participated & 3 jurisdictions engaged in planning Response processes are strengthened as a result of conducting the exercises Achie aquat 97% o princi 79% o emerg ANNUAL REPORT 2016-17

17 u e b e e e e e t c % o % sp e at o ci o rg 17 uals eved - Risk mitigation framework project endorsed at EADRA workshop How did we track? 17/18 Targets Review of normal commitment 2018 Progression of risk mitigation framework 2020 Targets Risk mitigation framework agreed and in place ber survey: 3.8 4.0 or above (out of 5) 4.0 or above (out of 5) eved 1 new training channel delivered eved - 28 Members received CCEAD or NMG training eved - 20 Industry Members from poultry and 20 from sheep 90% of participants indicate training is: 1. readily accessible 2. meets their needs At least 3 different sectors receive industry liaison training eved - Exercise Fintan involved 29/46 RRT 1 exercise with 80% of National Biosecurity Response Team (NBRT) attending, and all jurisdictions represented eved - 460 500 annually 90% 90% tional activities: cise Fintan participants % agreed, or strongly agreed, that they were able to apply the principles of osecurity incident management % indicated their ability to fulfil their role in a biosecurity emergency sponse was significantly improved eved - No cost shared responses however Exercise Fintan involved the atic industry and 100% jurisdictional representation through the RRT of participants agreed, or strongly agreed, that they were able to apply the ciples of biosecurity incident management in Exercise Fintan of participants indicated that their ability to fulfil their role in a biosecurity rgency response was significantly improved ANNUAL REPORT 2016-17 29 To have more than 1 industry group and 100% jurisdictions represented in the NBRT exercise Response processes are improved as a result of conducting exercises 3 new training channels delivered 90% of participants indicate training is: 1. readily accessible 2. meets their needs At least 4 different sectors receive industry liaison training 1 exercise with 90% of NBRT attending, and all jurisdictions represented 700 annually 100% 100% of participants from all AHA EAD response training programs understand policies, legal requirements and roles and responsibilities for an EAD response By 2020, 100% of Industry Members and 100% of jurisdictions have participated in EAD responses and/or simulation exercises

END OF PROGRAM OUTCOME PROMPT NOTIFIABLE OUTBREAK DISEASE DETECTION & EFFECTIVE EAD RESPONSE IN PLACE What do we want to achieve? (Intermediate outcomes) 7. Significant disease events are investigated early (refer to LBN supporting outcomes on page 13) 8. Government/ private veterinarians have knowledge, skills & justification to investigate & report on disease events (refer to LBN supporting outcomes on page 13) 8.1 Private livestock veterinarians have adequate opportunity through subsidised training on disease investigation offered annually in every state/territory to gain knowledge and skills to investigate and report on disease events 8.2 Level of notifiable disease investigations meet laboratory sample submission requirements No data available National Significant Disease Investigation (NSDI) covers gaps to ensure annual training in every state/territory Traini (onlin How do we monitor this? (Monitoring indicators) 7.1 Member understanding of general surveillance system performance/timeliness 15/16 Baseline Delay to detection of FMD up to 43 days (Martin et al 2011) 16/17 Target Periodic general surveillance system modelling is required to monitor status of timeliness. Initiate project in 2016-17 16/17 Actu New p No data available Support National Laboratory Task Group (NLTG) monitoring of sample submissions NLTG Above target 30 On target Not on target ANNUAL REPORT 2016-17

17 u p in n G 17 uals project initiated (AHA AOP 2017-18) to repeat modelling of timeliness How did we track? 17/18 Targets Completion of new project to assess expected time-todetection of FMD Report to AHA Members and Animal Health Committee (AHC) 2020 Targets Initiation of 2020-21 assessment of general surveillance system timeliness ing delivered in WA (30 private vets), Qld (14 private vets) and NSW ne course launched) under the NSDI Program Subsidised annual training opportunity offered in every state/territory (through NSDI Program or others) Determine a training target level Subsidised annual training opportunity offered in every state/territory Agreed target level met G Member-labs agreed to undertake monitoring Initiate annual information collection via NLTG with report to AHA Members and AHC Effective, routine monitoring and evaluation of adequacy of sample submissions established with report to AHA Members and AHC ANNUAL REPORT 2016-17 31

END OF PROGRAM OUTCOME PROMPT NOTIFIABLE OUTBREAK DISEASE DETECTION & EFFECTIVE EAD RESPONSE IN PLACE What do we want to achieve? (Intermediate outcomes) How do we monitor this? (Monitoring indicators) 9.1 Percentage of Industry Members who have traceability standards included into a compliance/verification scheme/ checklist 9.2 AHA’s contribution to the strengthening of traceability meets the needs of Members 9. Improved national policy & procedures for *surveillance, traceability & welfare (refer to intermediate outcomes 10 & 11) 9.3 Percentage of Members promoting traceability on their website 15/16 Baseline 80% (12 out of a possible 15 Industry Members) 16/17 Target No target set 16/17 Actu 80% ( • ACM • ADF • AEC No baseline available Member survey: “AHA’s contribution to the strengthening of traceability” - 3.4 or above (out of 5) 55% (17 out of 31 Members) • ADF • AEC • APL • CCA • DA 9.4 Improved traceability performance against national short term traceability standards 1.1 and 1.2 for National Livestock Identification System (NLIS) cattle 9.5 Animal Welfare Standards and Guidelines (S&Gs) project milestones delivered efficiently and effectively Improvements from the 2007 traceability exercises (baseline figures) NLIS Cattle (1.1) 98% (1.2) 99.5% NLIS Sheep & goats (1.1) 62% (1.2) 46% NLIS Pig (1.1) 75% (1.2) 36% No baseline available Revised timeline adhered to Agriculture Senior Officials Committee (AgSOC) benchmark was set at 98% for short term traceability Within 90% ( previo days Within suscep exerci Over t stakeh Addit • Re No target set 55% ( Memb Above target 32 On target Not on target ANNUAL REPORT 2016-17

17 u ( CM DF EC b ( DF EC PL CA A in ( io in ep ci t eh t e 17 uals (12 out of a possible 15 Industry Members) CMF DF ECL • ALFA • APL • CCA ber survey: 3.3 • EA • GICA • HRA • RA • SCA • WPA 3.5 or above (out of 5) (17 out of 31 Members) DF ECL PL CA A • GICA • MLA • NT • NSW • QLD • RA • SCA • SA • TAS • VIC • WA • WPA in 24 hours of the relevant Chief Veterinary Officer (CVO) being notified, (54/60) sheep included in the exercise, could be traced back to all ious location(s) where a specified animal resided during the previous 30 in 24 hours of the relevant CVO being notified, the location of all eptible animals that resided with 50% (30/60) sheep included in the cise, at any stage during the specified animals life could be determined the past 12 months the timeline has been revised three times due to eholder delays; current timeline is on-track tional activities: eview of S&G documents Revised timeline adhered to and feedback about AHAs involvement is positive S&G process is revised resulting in fewer delays and positive feedback from stakeholders AgSOC traceability standard benchmark AgSOC traceability standard benchmark 65% 4.0 or above (out of 5) 90% How did we track? 17/18 Targets 87% 2020 Targets 100% ANNUAL REPORT 2016-17 33

END OF PROGRAM OUTCOME NATIONAL SURVEILLANCE & ANIMAL HEALTH REPORTS ARE CONSIDERED ROBUST BY MEMBERS AND MARKETS What do we want to achieve? (Intermediate outcomes) 10. National surveillance & animal health reports are considered robust by Members & markets How do we monitor this? (Monitoring indicators) 10.1 Government and Industry Members consider that national surveillance publications (i.e. OIE reports, AHIA, AHSQ) are credible and robust 15/16 Baseline Member feedback that Australia’s surveillance as reported in AHiA is insufficient and reporting incomplete Member feedback that surveillance as reporting in Animal Health Surveillance Quarterly (AHSQ) is insufficiently transparent 16/17 Target Address Member feedback through consultation and addressing where AH effect change 11. Surveillance data are available to Members & partners to support policy development, decision making & trade 11.1 National Minimum Data Sets (NMDS) for surveillance are established and formats /protocols for transfer of national surveillance data are updated NAHIS data set satisfies surveillance information needs of Members NAHIS data set satisfies surveillance information needs of Members Agreement on NMDS for surveillance outstanding (AHC 2014) NMDS for surveillance agreed 11.2 Satisfied the national surveillance data and reporting of needs of Members National Animal Health Information System (NAHIS) and NAMP satisfied needs of Members; revision to reporting requested No baseline available NAHIS and NAMP satisfied needs of M Member survey: “AHA’s contribution to strengthening surveillance” - 3.4 or above (out of 5) Above target 34 On target Not on target ANNUAL REPORT 2016-17

H M Primary Strategic Priority Source Strategic Priority Three: Strengthen biosecurity, surveillance and animal welfare to enhance animal health, and support market access and trade NATIONAL SURVEILLANCE & ANIMAL HEALTH REPORTS ARE CONSIDERED ROBUST BY MEMBERS AND MARKETS 10 M&E INDICATORS* 40% 40% 20% 16/17 Actuals HA can All feedback on AHiA and AHSQ addressed prior to publication • Formal feedback on AHiA available August 2017 • AHC decision and requirements of AHA on AHSQ surveillance reporting is outstanding • Improvement on both publications to continue Additional activities: • Discussion on surveillance whereby Government Members provided feedback indicating areas for improvement of NAHIS program; accepted CVO/AHC work required (Member Forum 17) • Progressing 2 additional core projects arising from Forum • AHA working with AHC to effect real change NAHIS data set satisfies surveillance information needs of Members No resolution on NMDS – subject of consultation between National Biosecurity Information Governance Expert Group and AHC Additional activities: • DAWR has commissioned a consultancy project to better inform requirements and support an agreement between CVOs (due November 2017) • Correspondence sent to AHC identifying key issues for resolution Members Work commissioned on the NAHIS database management system to deliver new functionality and new NAHIS report for CVOs (due October 2017) • Written feedback on NAHIS and NAMP next available in November Member survey: 3.6 • Qualitative surveillance results indicate that we collectively are not meeting expectations 3.5 or above (out of 5) 4.0 or above (out of 5) Implement NMDS in the NAHIS as informed and agreed by AHC NAHIS data set satisfies surveillance information needs of Members How did we track? 17/18 Targets Implement required changes to NAHIS publications as required by AHC agreement. 2020 Targets Satisfied the publication requirements of AHC Members. *AHA’s M&E indicators are used to measure the company’s progress towards outcomes in key business areas, which are directly aligned with AHA’s broader strategic priorities. ANNUAL REPORT 2016-17 35

END OF PROGRAM OUTCOME NATIONAL SURVEILLANCE & ANIMAL HEALTH REPORTS ARE CONSIDERED ROBUST BY MEMBERS AND MARKETS What do we want to achieve? (Intermediate outcomes) 12. Animal welfare is strengthened on-farm & in supply chain (refer to LBN supporting outcomes on the final page) How do we monitor this? (Monitoring indicators) 12.1 AHA's contribution to strengthening animal welfare meets the needs of Members 12.2 Number and value of welfare projects that AHA funds or has carriage of 12.3 Number of Industry Members that have an animal welfare strategy or a plan which includes animal welfare 13.1 Percentage of Industry Members with animal welfare standards incorporated into a compliance/verification scheme or checklist 13. Improved awareness & adoption of animal welfare standards 13.2 Number of page views on the Animal Welfare Standards Website 13.3 Number of jurisdictions to mandate animal welfare standards and guidelines in state and territory legislation 13.4 Percentage of Members and number of key stakeholders promoting S&Gs on their websites 15/16 Baseline No baseline available 16/17 Target Member survey: “AHA’s contribution to strengthening a welfare” - 3.4 or above (out of 5) 5 projects 7 projects No baseline available 100% all Industry Members have a welf plan/strategy in place 2 out of 15 Industry Members Target not set • AAA • ACMF • ADF • ADMA 35,561 • AECL • AHIC • ALFA • APL • CCA • EA • GICA • HRA • RA • SCA • WPA 40,000 6/8 jurisdictions mandated standards for 1 industry sector (land transport) 0/8 jurisdictions mandated standards for cattle and 0/8 for sheep No baseline available Target not set Target not set Above target 36 On target Not on target ANNUAL REPORT 2016-17

a lf 16/17 Actuals How did we track? Member survey: 3.7 animal 9 projects 17/18 Targets 3.7 or above (out of 5) $500,000 funding lfare 100% all Industry Members have a welfare plan/strategy in place 100% 2020 Targets 4.0 or above (out of 5) $1m funding 100% 13% (2 out of a possible 15 Industry Members) • APL • AECL 47% 60% 47,445 70,000 6 jurisdictions mandated land transport S&Gs, 1 jurisdiction mandated sheep S&G, 1 jurisdiction mandated cattle S&Gs • VIC, NT, SA, TAS, NSW & QLD mandated land transport S&Gs • SA was the first state to mandate the sheep and cattle S&Gs on the 15 April 2017 29% of Members and stakeholders promote S&G on websites • GICA did not have a link to welfare S&G but after sending an online enquiry they updated the website NT & TAS to mandate cattle S&G. TAS to mandate sheep S&G 75,000 All jurisdictions to mandate animal welfare S&Gs as agreed by AGMIN 50% 90% ANNUAL REPORT 2016-17 37

END OF PROGRAM OUTCOME NEW & ENHANCED PARTNERSHIPS & SUSTAINABLE PROGRAMS What do we want to achieve? (Intermediate outcomes) How do we monitor this? (Monitoring indicators) 14.1 Extent to which AHA has facilitated sustainable partnerships (existing and new) (Refer also to indicator 16.5) 15/16 Baseline No baseline available 16/17 Target Member survey: “AHA facilitates sustainable partnerships” - level of agreement 7.9 or above (out of 10) Member survey: Gov’t, Service Provider and Industry cohorts score “new partnerships are developed and existing ones strengthened” as ‘adequate’ to ‘positive’ 16/17 Actuals Member survey: 8.3 • “[AHA] facilitates join • Induction process inst • Government Forum in • Two new surveillance Member survey: Gov’t = Adequate Service Provider = Posit Industry = Positive Additional activities/fee • Welfare Standards and of support; work will c • Meat & Livestock Aust • EADRA workshop: “As and its relevance to m 14. Enhanced Member capability & capacity • FMD Project: “Withou was nobody [within o and the project benefi 14.2 Extent to which AHA has collaborated and tailored information for and with Members & stakeholders 14.3 Extent to which AHA meeting facilities are utilised No baseline available More Members are involved and have direct contribution to communications outputs 11 projects involved mem • PHA and AHA awarde • JD management in ca industry stakeholders some sectors; will con • Shared booth with Wi • Communications Mana No baseline available Internal events = 70 Internal events = 76 Additional activities/fee • “[AHA meeting rooms External events = 20 14.4 Extent to which AHA is delivering value to Members No baseline available Member survey: “AHA is delivering value to Members” - level of agreement 7.9 or above (out of 10) External events = 20 Member survey: 8.0 • “[AHA] responsive to Above target 38 On target Not on target ANNUAL REPORT 2016-17

n st n e it ee nd c st As m u o fi m e a s n Wi na ee ms o Primary Strategic Priority Source Strategic Priority Four: Deliver Member value, organisational performance enhancement and sustainable resourcing. NEW & ENHANCED PARTNERSHIPS & SUSTAINABLE PROGRAMS 33 M&E INDICATORS* 58% 33% 9% How did we track? nt partnerships on agreed projects” and “brings people together” stigated to combat ‘newcomer issues’ ntroduced (Breakfast Forum) e projects developed for 17/18 itive eedback: nd Guidelines: maintained relationships with participants noting variable levels continue in 17/18 stralia became an AHA Associate Member As a new participant it was valuable for understanding how the EADRA ties in... my industry” ut you [AHA staff] we would not have made the progress that we have. There our organisation] to guide us through the Animal Health Committee process fits greatly from AHA’s established contacts” mber/stakeholder information collaboration, with mutually beneficial outcomes ed the Australian Biosecurity Award (Farm Biosecurity Program) attle communications and practice change campaign: shared with relevant s to ensure consistent messaging and uptake (confusion and resistance in ntinue to work on this 17/18) Wildlife Health Australia nager assisted with Qld White Spot Disease (WSD) Response eedback: ms] are considered a fantastic resource. Great facility to meet with industry” 3 AHA Members have used AHA facilities beyond their credit allocation annually 5 non-Member organisations hire AHA facilities annually o Members, innovative, facilitates collaboration” 8.0 or above (out of 10) 90% of 17/18 communication and partnerships activities are delivered 5 AHA Members have used AHA facilities beyond their credit allocation annually 10 non-Member organisations hire AHA facilities annually 8.0 or above (out of 10) 90% of 19/20 communication and partnerships activities are delivered 5 collaborative/partnership activities satisfactorily completed annually 15 collaborative/partnership activities satisfactorily completed annually Gov’t = Positive Service Provider = Positive Industry = Positive Gov’t = Positive Service Provider = Positive Industry = Positive 17/18 Targets 8.0 or above (out of 10) 2020 Targets 8.0 or above (out of 10) *AHA’s M&E indicators are used to measure the company’s progress towards outcomes in key business areas, which are directly aligned with AHA’s broader strategic priorities. ANNUAL REPORT 2016-17 39

END OF PROGRAM OUTCOME NEW & ENHANCED PARTNERSHIPS & SUSTAINABLE PROGRAMS What do we want to achieve? (Intermediate outcomes) How do we monitor this? (Monitoring indicators) 15.1 Number of AHA website views 15.2 Percentage of users opening AHA Express 15.3 Total number of subscribers to AHA Express 15.4 Total number of followers on social media 15.5 Percentage engagement on Facebook 15. Strong productive relationships & information flow 15.6 Extent to which Member’s Forum content is useful 15.7 Extent to which Members' Forum meets the Member’s organisational needs 15.8 Extent to which AHA is responsive to Members 15/16 Baseline 234,794 33% 16/17 Target 250,000 35% (industry standard 20-25%) 570 1,514 1,000 4,300 757 4,961 16/17 Actuals 298,929 35% No baseline available 5% (industry standard 1-1.5%) No baseline available No baseline available 90% 90% 3% Additional feedback: • AHA shared 149 Mem 96.5% 94% No baseline available Member survey: “AHA is responsive to its Members” - level of agreement 7.9 or above (out of 10) Member survey: 7.9 • “[AHA] has done som what’s going on in th Additional feedback: • 15.9 Members are satisfied with AHA communications; timings, channels and frequency of contact No baseline available Qualitative feedback is mostly positive “A quick note to than December newsletter Qualitative assessment Feedback: • “Just wanted to say h understand all the diff • “[Member Forums]… industry together and • “Forum discussions c • “It’s an excellent, bril Probably the best qu • “I think communicati different communica Above target 40 On target Not on target ANNUAL REPORT 2016-17

m m h n er nt h iff … nd c il u ti a How did we track? 17/18 Targets 2020 Targets 310,000 annually 35% 2,000 total 8,000 total 330,000 annually 40% 6,000 total 18,000 total 5% 5% mber/stakeholder posts on Facebook 90% 90% 90% 90% me good work in providing communication in making people aware of he organisation, the sector and the industry” 8.0 or above (out of 10) Qualitative assessment based on feedback is mostly positive nk you for including the details of our National Safety Officer role in your er. We appreciate the plug!” nt based on feedback is assessed as mostly positive how great the illustration is for the Goat Health Declaration – I now ifferent elements of PICs, NLIS etc and how they work together! … provides a very good platform for bringing all stakeholders ie. Govt and nd regularly” could be more robust and at times it didn’t feel like anybody had ownership” illiant publication [Goat Industry Welfare Standards and Guidelines]. uick reference guide ever produced for the goat industry” tion is pretty good and improved with monthly newsletter email. I’ve noticed ation channels lately” Qualitative assessment based on feedback is mostly positive Qualitative assessment based on feedback is mostly positive 8.0 or above (out of 10) Qualitative assessment based on feedback is mostly positive ANNUAL REPORT 2016-17 41

END OF PROGRAM OUTCOME NEW & ENHANCED PARTNERSHIPS & SUSTAINABLE PROGRAMS What do we want to achieve? (Intermediate outcomes) How do we monitor this? (Monitoring indicators) 16.1 Percentage annual increase in Gross Revenue (measured by 5 year rolling average gross revenue from audited financial statements) 16.2 Industry Member reserves are greater than their respective minimum agreed levels 16.3 Percentage annual increase in core retained earnings (measured from audited balance sheet) 16.4 Total annual average income of special projects (percentage is the annual increase) 16. AHA financial sustainability 16.5 Number of partners other than Members involved in special projects 16.6 Number and type of diversified funding options* (Exclude core, special or Government funding) 16.7 Corporate overhead charge on operational projects 16.8 Timeliness of financial reporting and project progress reports to Members 16.9 Timeliness of internal financial reporting 15/16 Baseline $14,655,000 16/17 Target 2% = $14,948,000 16/17 Actuals $15,296,000 Eight industries who need reserve policies $4,517,000 No target set Three members have in Five members do not h 2% = $4,607,000 $5.7m Recognition of income and retention of interes $268,000 2% = $273,000 $223,000 TBC No target set 12 partners including: p projects TBC No target set Two diversified funding Program) and the Direc 43% 43% 46.65% Overhead is allocated a reduced on a case by c No baseline available Reports circulated to Members within the agreed timeliness (align with Board cycle) Monthly within 1 month and within annual audit timeframes Monthly within 2 weeks Industry Members have • New reports develop • New reports develop • Quality of reports ha Financial reports have reports have improved Above target 42 On target Not on target ANNUAL REPORT 2016-17

n h e es p ng ec a c e p p a e d How did we track? 17/18 Targets 2020 Targets 5% = $17,197,000 5% = $18,960,000 ndustry reserves greater than their agreed level (SCA, WPA, DA). have agreed levels (CCA, GICA, ALFA, AECL, ACMF) Industry Member reserves are greater than their respective minimum agreed levels 3% = $4,872,000 e for LBN subsidiary, past completed projects, under-spent core programs est 3% = $281,000 private vets, private companies and individuals who are involved in special 13 partners including: private vets, private companies and individuals who are involved in special projects ng options: private funding (Australian Animal Pathology Standards ect tender (APL evidence of absence of exotic disease project) Continue to improve the diversified funding options by two $250,000 43% according to budget and many projects were under-budget. Overhead was case basis, reducing the total overhead charge from $1.5m budget to $1.4m e continued to receive reporting: ped for non-industry Members ped for Government Members as improved e been made available, but not all have been in the time required - quality of d Reports circulated to Members within the agreed timeliness (align with Board cycle) Monthly within 2 weeks Reports circulated to Members within the agreed timeliness (align with Board cycle) Monthly within 2 weeks 5% = $309,000 17 partners including: private vets, private companies and individuals who are involved in special projects Continue to improve the diversified funding options by four $2,000,000 43% Industry Member reserves are greater than their respective minimum agreed levels 3% = $5,164,000 ANNUAL REPORT 2016-17 43

END OF PROGRAM OUTCOME NEW & ENHANCED PARTNERSHIPS & SUSTAINABLE PROGRAMS What do we want to achieve? (Intermediate outcomes) How do we monitor this? (Monitoring indicators) 17.1 Engaged workforce 17.2 Improved internal and external collaboration 15/16 Baseline 71% 16/17 Target Maintain 16/17 Actuals 72% 79% internal Maintain 84% 89% external Maintain 91% 17. A capable, engaged, innovative and agile workforce 17.3 Positive trends in professional/career and learning development 40% professional/career development 71% learning development 50% 49% 75% 74% 17.4 A well led and well managed workforce 77% management Maintain 79% leadership Maintain 82% 77% 17.5 Innovation is practiced and valued 17.6 Staff retention 75% Maintain 82% 80% Maintain 92% Above target 44 On target Not on target ANNUAL REPORT 2016-17

How did we track? 17/18 Targets 2020 Targets > 75% industry benchmark Maintain (69% industry benchmark) Maintain (82% industry benchmark) 55% (47% industry benchmark) 75% (65% industry benchmark) > 84% industry benchmark 80% (67% industry benchmark) Maintain (67% industry benchmark) > 80% Better than industry benchmark Better than industry benchmark > 80% Better than industry benchmark Better than industry benchmark Better than industry benchmark ANNUAL REPORT 2016-17 45

COMMITTEE PARTICIPATION Animal Health Committee Animal Health Quadrilateral Group 3D Network Australian Pork Limited Biosecurity Reference Group Australian Pork Limited Specialist Group for Biosecurity, Food Safety and Quality Assurance Research Development & Extension Group Australian Strategic and Technical Advisory Group on Antimicrobial Resistance Cattle Council of Australia Animal Health Welfare Biosecurity and Environment Consultative Committee CSIRO – Health and Biosecurity Committee Evaluation and Lessons Management Specialist Task Group Federation of Australian Wool Organisations' Emergency Animal Disease Preparedness Working Group Governance and Steering Committees for Rural Research & Development for Profit Project - Improved surveillance, preparedness and return to trade for EAD incursions using FMD as a model International Foot-and-Mouth Disease Vaccine Strategic Reserve Network Livestock Data Link Working Group National Animal Health Surveillance and Diagnostics Business Plan Implementation Task Group (of Animal Health Committee) National Biosecurity Committee (observer) National Biosecurity Emergency Preparedness Expert Group National Biosecurity Information Governance Expert Group National Communications Network National Laboratory Task Group (of Animal Health Committee) National Veterinary Epidemiology and Surveillance Task Group (of Animal Health Committee) National Farmers Federation Biosecurity Task Group National Farmers Federation Welfare Task Group National Livestock Identification Scheme Cattle Advisory Committee National Livestock Identification Scheme Monitoring Committee National Livestock Identification Scheme Pigs Advisory Committee National Livestock Identification Scheme Sheep and Goat Advisory Committee National Livestock Identification Scheme Standards Committee Northern Australia Biosecurity Framework Reference Group Northern Australia Biosecurity Framework Working Group National Vendor Declaration Working Group Health for Wealth Project Management Committee Queensland Biosecurity Capability Implementation Program Board Queensland Biosecurity Strategy Working Group Review of Post-mortem Inspection and Disposition Judgements Steering Group Rural Research & Development for Profit ‘Health 4 Wealth’ Project Management Committee Rural Research & Development for Profit Project Peri-mortem Project Working Group SAFEMEAT Executive SAFEMEAT Partners Training Specialist Task Group Vaccination Expert Advisory Group (Animal Health Committee) Wildlife Health Australia Coordinator Group 46 ANNUAL REPORT 2016-17

ANNUAL REPORT 2016-17 47

STRATEGIC PRIORITY ONE

STRATEGIC PRIORITY ONE INTRODUCTION Having a strong, robust framework and the necessary tools readily available to effectively and successfully deal with EADs is an asset to AHA’s Members, the economy and the community. AHA safeguards the integrity of the EADRA, to enhance Members’ responses to EADs and EAD preparedness and response arrangements generally, as well as strengthening governmentindustry partnerships. KEY HIGHLIGHTS • AUSVETPLAN information mapping consultancy completed. • Publication of new guidance document on tracing and surveillance. Effectively manage and strengthen Australia’s emergency animal disease response arrangements through successful partnerships with Members. MAJOR ACHIEVEMENTS • Major review of the response policy brief for Hendra virus • Proposal for risk mitigation framework requirements endorsed at EADRA workshop • FMD Risk Management Project Phase 2 completed 50

• Review of AUSVETPLAN disease strategies and response policy briefs to update scientific and technical information and address inconsistencies in approach. • Develop a new template for enterprise manuals. OUTLOOK 2017-18 • Continue communications about FMD Risk Management Phase 2 research projects. • Improved surveillance, preparedness and return to trade for EAD incursions using FMD as a model. • Endorsement of variation to the EADRA Clauses and amendments to Schedule due for completion in October 2017. • Third five-year review of the EADRA due for completion in December 2017. • Begin process of seeking expert technical advice for planning, contractual arrangements and implementation of a new FMD Vaccine Bank for 2019-2024. 51

Response Framework and Obligations Program PROJECTS DELIVERABLES Complete 85% of the deliverables of the 2016 – 17 EADRA work plan EADRA Updated version of EADRA endorsed and published Guidance documents prioritised in the 2016-17 EADRA work plan endorsed and published Year two work plan for the development of aquatic EAD response arrangements completed Aquatic EAD Response Arrangements A report that evaluates the likely costs of administering an aquatic EAD agreement prepared for consideration by governments and industry A report that examines options for industry contribution/repayment mechanisms relating to management of aquatic EAD incidents Jun 2017 Achieved TARGET Jun 2017 OUTCOME Achieved PROJECT BUDGET COMMENTS Oct 2016 Achieved 237,739 Jun 2017 Achieved New version of EADRA published ahead of time Jun 2017 In progress 125,000 Jun 2017 In progress An AHA business case for the Aquatic Deed is under development The Aquatic Deed Working Group has developed a discussion paper and consultation with industry participants is underway PROJECT ACHIEVED DELIVERABLE OUTCOMES 52 67% IN PROGRESS 33% DELAYED/NOT ACHIEVED 0% ANNUAL REPORT 2016-17

Response Tools Program PROJECTS DELIVERABLES Complete 85% of the deliverables of the 2016-17 AUSVETPLAN work plan TARGET Jun 2017 OUTCOME Not achieved PROJECT BUDGET COMMENTS AUSVETPLAN Incorporation of key findings from Exercise Odysseus into relevant components of AUSVETPLAN where appropriate Progress reporting to funding parties FMD Vaccine Bank Management Provision of specific technical advice to Members to enhance their understanding of FMD virus, diagnostic tests, vaccine selection and FMD vaccination tactical options Progress reporting to funding parties Anthrax Vaccine Assess inventory, batch expiry dates and sales of anthrax vaccine FMD Risk Management Capripox Research and Development Progress reporting to funding parties Annual review and program meeting Complete Capripox test development Jun 2017 Achieved Six monthly Jun 2017 Achieved Achieved 92,666 Jun 2017 Achieved 479,623 Approximately 70% of work plan delivered. Availability of personnel (both within AHA and externally) limited progress on some work plan items Animal Health Committee (AHC) advised there were no key findings to be included in AUSVETPLAN Six monthly Achieved 18,935 Six monthly Feb 2017 Jun 2017 Achieved 1,039,983 Achieved Achieved 82,231 PROJECT ACHIEVED DELIVERABLE OUTCOMES ANNUAL REPORT 2016-17 89% IN PROGRESS 0% DELAYED/NOT ACHIEVED 11% 53

STRATEGIC PRIORITY TWO

STRATEGIC PRIORITY TWO INTRODUCTION Having AHA Members understand their roles and responsibilities in the event of an EAD, compliance with the requirements of EADRA and that they have the capacity, capability and skills to effectively contribute to an EAD response is vital. KEY HIGHLIGHTS • Invited to manage the National Biosecurity Response Team (NBRT). • Biosecurity Emergency Response Training Assessment (BERTA) materials project underway. • Contributed to Exercise Athena; an international EAD simulation exercise led by the Department of Agriculture and Water Resources (DAWR). • Professional development for EAD trainers was delivered on evaluation for emergency management. • Delivered four training workshops for Consultative Committee on Emergency Animal Diseases (CCEAD) and National Management Group (NMG) to Members. • Coordinated the evaluation of private veterinarian EAD awareness/surveillance training workshops. Enhance the emergency animal disease preparedness and response capability of AHA and its Members. MAJOR ACHIEVEMENTS • Designed and conducted the first aquatic EAD exercise • The success of liaison – livestock industry function training resulted in six requested workshops for 2017-18 56 ANNUAL REPORT 2016-17

• Five industry liaison workshops are scheduled, targeting the horse and dairy industries and including regional workshops. OUTLOOK 2017-18 • The new NBRT will participate in Exercise Border Bridge, a NSW/QLD joint biosecurity simulation exercise. • BERTA materials project on track to be completed by December 2018. • CCEAD and NMG training scheduled for 2017-18, with new resources and delivery format being developed to enhance training. • A specialised CCEAD workshop for pig vets will be held in 2017. • Exercise program for introduced marine pest emergencies will be delivered by June 2018, funded by DAWR. ANNUAL REPORT 2016-17 57

EAD TRAINING PROJECTS DELIVERABLES Complete 85% of the deliverables of the 2016-17 EAD Training work plan National EAD Training Develop and/or update at least one prioritised set of training resources to support national consistency in EAD awareness and response training Training resources are shared and accessible to stakeholders on a new trainers’ extranet Deliver training events to enhance Members’ preparedness to respond to EADs RRT Training In consultation with a host jurisdiction, design and deliver an RRT training activity June 2017 Achieved 220,020 TARGET June 2017 OUTCOME Achieved PROJECT BUDGET COMMENTS June 2017 Achieved 682,404 March 2017 Not achieved Materials have been made available on the PHA Biosecurity Portal June 2017 Achieved PROJECT ACHIEVED DELIVERABLE OUTCOMES 58 80% IN PROGRESS 0% DELAYED/NOT ACHIEVED 20% ANNUAL REPORT 2016-17

STRATEGIC PRIORITY THREE

STRATEGIC PRIORITY THREE INTRODUCTION A unified national approach to biosecurity, surveillance and animal welfare strengthens the overall integrity and confidence of the national animal health system to support market access from which all Members benefit. AHA strives to enhance Member capability to implement effective biosecurity and animal welfare practices, identify disease events in a timely manner and to trace animals along the supply chain. Ensuring domestic and international markets have the continuing confidence to purchase our Members’ products due to the performance of these measures, as underpinned by robust surveillance, laboratory, reporting and verification processes, is paramount to what we are trying to achieve. KEY HIGHLIGHTS • Farm Biosecurity Program reviewed and recommendations initiated. • National adoption of a communications plan on Johne’s disease in cattle delivered and shared with government, industry and state farming organisations for their delivery. • AgSOC endorsed NLIS Cattle and NLIS Pig Standards. • Subsidised disease investigations and/or subsidised private practitioner disease investigation training for NSDI program. MAJOR ACHIEVEMENTS • Negotiated the successful transfer of LBN as a subsidiary company to AHA • Farm Biosecurity Project received the 2017 Australian Biosecurity Award • Animal Health in Australia report was published in 2016 60 • A nationally endorsed, revised Accreditation Program for Australian Veterinarians (APAV) registration course. • Revision and distribution of screw-worm fly (SWF) awareness materials and maggot collection kits. • Revision of online NAMP interactive map to support understanding of the distribution of bluetongue virus zones. Strengthen biosecurity, surveillance and animal welfare to enhance animal health and support market access and trade.

• Drafting of NLIS Sheep and Goat Standards. • Complete Exercise Cowcatcher III, a cattle tracing exercise. • Review of the SheepMAP and GoatMAP projects. OUTLOOK 2017-18 • Review of the Goat Health Project. • Implement recommendations arising from Exercise Sheepcatcher II. • Complete review of all industry biosecurity plans. • Work with governments on meeting their EADRA commitments for Clause 14. • Implementation of the National Surveillance and Diagnostics Business Plan. • Implement Australian Animal Health Laboratory’s STARS (Sample Tracking and Reporting System) for national sharing of laboratory general surveillance data. • Enhance the NAHIS and AHSQ publication. • Delivery of APL Evidence of Absence Surveillance Project. • Monitoring the efficacy of general surveillance investments – a reassessment of Australia’s sensitivity to detect FMD. ANNUAL REPORT 2016-17 61

On-Farm and Supply Chain Biosecurity Program PROJECTS DELIVERABLES Increase producer awareness of the Farm Biosecurity Project by 5%, by October 2017, through the implementation of targeted media plans and advertising campaigns in 2016-17 Increase from 49% to 60% Farm Biosecurity Project in the number of producers who undertake a biosecurity action as a result of coming into contact with the Farm Biosecurity Project (as measured in the 2017 joint Farm Biosecurity Producer Survey) TARGET Oct 2017 OUTCOME Achieved PROJECT BUDGET COMMENTS Jun 2017 Not achieved 206,790 2017 survey results showed a decline to 40% of producers undertaking activities. The most popular reason producers did not undertake an action was “no need/no problem”, indicating the Farm Biosecurity Project needs to focus on reminding producers about biosecurity threats and the danger of complacency Biosecurity Planning and Implementation Assist Members meet their biosecurity commitments as listed in Clause 14 of the EADRA EAD and Biosecurity Awareness for New and Emerging Industries Measure existing levels of biosecurity and EAD awareness within these industries Produce and distribute targeted material that will raise awareness of biosecurity and EAD Prohibited Pig Feed Compliance and Awareness Newcastle Disease Management Plan Complete 90% of the deliverables of the project activities in the business plan Complete 90% of deliverables of the Newcastle Disease Management Plan 2013 - 2016 Develop the Newcastle Disease Management Plan Oct 2016 Delayed Jun 2017 Achieved 65,024 Jul 2016 Achieved 25,000 Jun 2017 Achieved Jun 2017 Achieved 18,000 Jun 2017 Achieved 36,050 Placed on hold by steering committee Cont’d 62 ANNUAL REPORT 2016-17

Hold the third Biosecurity RD&E Forum Animal Biosecurity RD&E Strategy Alpaca Biosecurity Complete 90% of the milestones as listed in the business plan Work with AAA to identify their biosecurity requirements Cattle Production Conditions The provision of two tools or information collateral to cattle producers to facilitate behavioural change on-farm Develop business plan and complete 90% of the 2016-17 project activities The provision of two tools or information collateral to sheep producers to facilitate behavioural change on-farm Sheep Health Project Complete 90% of the 2016-17 project activities Implement agreed recommendations from the National Sheep Health Monitoring Project Review Complete 90% of the deliverables of the business plan Goat Production Conditions Complete an assessment of the current systems that provide disease assurance for goat producers Meat Inspector Training Deliver an online training course in EAD and biosecurity awareness to the processing sector Online Biosecurity Training Deliver an online training course in EAD and biosecurity awareness to the production sector Jun 2017 Achieved Dec 2016 Delayed 108,982 Jun 2017 Achieved 200,000 Apr 2017 Achieved Apr 2017 Jun 2017 Achieved 10,000 Achieved 581,330 Jun 2017 Achieved Jun 2017 Achieved Jun 2017 Jun 2017 Achieved Achieved 1,542,079 GICA reviewing resourcing for this project Jun 2017 Not started 80,503 No funding obtained Jun 2017 Not started 67,897 No funding obtained PROJECT ACHIEVED DELIVERABLE OUTCOMES ANNUAL REPORT 2016-17 75% IN PROGRESS 0% DELAYED/NOT ACHIEVED 25% 63

Surveillance and Laboratory Program PROJECTS DELIVERABLES Implementation of the Surveillance Business Plan with 80% of AHA led deliverables underway: • A documented revision of surveillance data needs of AHA Members • An accessible national index of animal health databases Surveillance and Laboratory Enhancement Support • National utilisation of a revised NSDI Program • An expert report outlining requirements and recommendations for delivering disease investigation training through the NSDI program • A pilot-ready version of the Animal Health Alerts project (smartphone app and web portal) • A release-ready version of the Animal Health Alerts project NSDIP Effective, subsidised disease investigations led by private practitioners in every state and territory and/or subsidised private practitioner disease investigation training National Animal Health Laboratory Coordination Efficient management of contracts and issues to maintain and improve diagnostic services for specific diseases that have market access relevance Complete 90% of the deliverables of the 2016-17 fly trapping SWF Complete 90% of the deliverables of the targeted myiasis monitoring A non-specialist user interface package for modelling SWF incursion spread An agreed program business plan for 2017 onwards Jun 2017 Jun 2017 Dec 2016 Dec 2016 Achieved Achieved 173,671 Delayed Achieved Cont’d 64 ANNUAL REPORT 2016-17 Product undergoing user testing TARGET OUTCOME Jun 2017 PROJECT BUDGET COMMENTS Not achieved Approximately 34% of deliverables completed Dec 2016 Jun 2017 In progress Stopped AHA contributing to AHC task groups and DAWR Dependent upon documentation of national surveillance data needs. See above Jun 2017 Jun 2017 Achieved 206,790 Not started Reprioritised by National Surveillance Business Plan Implementation Working Group Dec 2016 Delayed Technical development issues Jun 2017 Jun 2017 Delayed Achieved 231,972 Dependent upon previous Jun 2016 Achieved 30,628

Australian Animal Pathology Standards Program Reference Laboratories EAD Abattoir Surveillance Quarterly histopathology proficiency testing for subscribing laboratories Quarterly An annual training workshop (the Roadshow) Management of contract for reference laboratory services for Johne’s disease and Anthrax reference laboratories Collection of nominated samples from abattoirs for testing of EADs Complete 90% of the deliverables of the virology and entomology plans NAMP Maintain a current, interactive, web-based bluetongue zone map Process 90% of notified bluetongue zone change requirements within 10 working days Publish annual NAMP report TSEFAP Timely monitoring and communication of Australia’s freedom from bovine spongiform encephalopathy and classical scrapie combined with our highest level of international rating, to support market access for cattle, sheep and goats Complete collection of samples Sep 2016 Jun 2017 Achieved 107,278 Achieved Achieved 160,000 Jun 2017 Jun 2017 Jun 2017 Jun 2017 In progress Achieved Achieved 1,366,616 Achieved 97,428 On hold by funding party and will be reviewed in 2017-18 Jan 2017 Jun 2017 Achieved Achieved 1,182,902 Sep 2016 Delayed Difficult to obtain samples due to reduction in sheep slaughter numbers Present final report to Meat and Livestock Australia Cadmium Study Prepare draft research paper Dec 2016 Delayed Sep 2016 Delayed 13,558 Difficulty sourcing samples from direct lines of sheep, originating from low rainfall areas, at participating abattoirs Difficulty sourcing samples from direct lines of sheep, originating from low rainfall areas, at participating abattoirs Veterinary Practitioner Enhanced General Surveillance (VPEGS) Deliver pilot activities as defined by the VPEGS working group Nov 2016 Not started 52,867 Funds redirected by DAWR PROJECT ACHIEVED DELIVERABLE OUTCOMES ANNUAL REPORT 2016-17 54% IN PROGRESS 8% DELAYED/NOT ACHIEVED 38% 65

Market Access Support Program PROJECTS DELIVERABLES Facilitate welfare discussions and collaboration between industry and government Members for a harmonised approach to welfare standards implementation and improved welfare outcomes Livestock welfare Collaboratively develop animal welfare tools/systems that will validate the animal welfare credibility of Members Jun 2017 Achieved TARGET Jun 2017 OUTCOME Achieved PROJECT BUDGET COMMENTS 79,951 Provided input in the draft proposal to establish an Australian Farm Animal Welfare Council – a National Farmers’ Federation/ RSPCA and AVA initiative Promote Member and stakeholder welfare initiatives. Collaborated industries direct involvement in the AHiA publication A secure, validated, web accessible database of agreed national surveillance data requirements NAHIS Produce AHSQ reports Produce the AHiA report NLIS Program Collaboratively develop implementation and compliance rules for the four NLIS species programs (sheep, goats, cattle, pigs) Tracing Exercises Undertake national tracing exercises for pigs and cattle to assess their performance against the National Livestock Traceability Performance Standards as identified by their respective advisory committees Goat Tag Trial Continuation of a three year trial to identify devices suitable for the identification of dairy goats Quarterly May 2017 Jun 2017 Achieved Achieved Achieved 63,000 Jun 2017 Achieved 647,602 Future requirements under revision by AHC and DAWR Jun 2017 Not started 70,000 Cattle tracing and pigs tracing exercises delayed until 2017-18 and 2019 respectively, both at request of relevant steering committees Dec 2018 Stopped in July 2016 22,943 GICA postponed project Cont’d 66 ANNUAL REPORT 2016-17

Alpaca Traceability Manage contracts that enable the AAA’s responsibilities relating to traceability to be met National Johne’s Disease Project Manage the cross-sectoral issues associated with the administration of the Market Assurance Program (e.g communication and database management) Australian Government Accredited Veterinarian (AAVet) Administer AAVet for the accreditation of veterinarians involved in live exports Jun 2017 Not started 15,000 AAA postponed project Jun 2017 Achieved 240,422 Jun 2017 Achieved 3,691 A nationally endorsed revised APAV training module APAV An accurate public register of accredited vets An efficient database management system to deliver training and related business services Sheep Cooperative Research Centre (CRC) Wellbeing Program Livestock Welfare - Poultry Support and ensure the wool industry’s investment in the sheep CRC delivers value Jun 2017 Achieved 161,985 Dec 2016 Jun 2017 Jun 2017 Achieved Achieved 40,000 Achieved Develop National Australian Animal Welfare Standards and Guidelines for Poultry Nov 2017 Delayed 182,946 Delays experienced due to drafting of Regulation Impact Statement and Office of Best Practice Regulation providing feedback past the agreed timelines Australian Animal Welfare Standards and Guidelines for Goats Communications Plan Develop and implement a communication strategy to increase awareness among fibre and dairy goat producers on the Goat Industry Welfare Standards and Guidelines Apr 2017 Achieved 45,708 Cont’d ANNUAL REPORT 2016-17 67

Australian Animal Welfare Standards and Guidelines for Goats Katestone Heat Load Project Develop first draft standards and guidelines Aug 2015 Achieved N/A Management of the contract for the refinement and delivery of heat load advisory service National Wild Dog Action Plan Poultry Game Species Support the National Wild Dog Action Plan via the Stakeholder Consultative Group Develop welfare standards and guidelines specifically for game bird species for inclusion into the National Australian Animal Welfare Standards and Guidelines for Poultry Jun 2017 Achieved 243,199 Jun 2017 Achieved 5,469 Apr 2017 Delayed 18,838 Due to the major project Australian Animal Welfare Standards and Guidelines for Poultry having delays, this has caused a flow on effect to the game species project PROJECT ACHIEVED DELIVERABLE OUTCOMES 68 76% IN PROGRESS 0% DELAYED/NOT ACHIEVED 24% ANNUAL REPORT 2016-17

STRATEGIC PRIORITY FOUR

STRATEGIC PRIORITY FOUR INTRODUCTION AHA strives to deliver ‘value for money’ services to its Members, contributing to and supporting their respective deliverables to their Members and constituents. AHA’s strategic planning and Member engagement is designed to ensure the diligent utilisation and management of Member contributions. Transparent and relevant reporting on our programs is focused on providing the correct information at the right time to enable AHA and its Members to make informed decisions about the allocation of scarce resources to animal disease and biosecurity issues of the nation. AHA aims to operate with better practice standards in corporate governance, financial and human capital management, technology, communications and, at its core, collaboration and engagement to maximise its sphere of influence, with solutions tailored to suit its Members’ financial constraints. KEY HIGHLIGHTS • Collective social media following was at 4,961 at 30 June 2017 up from 1,739 at 1 July 201612 • Performance of AHA meets Members requirements as reflected in Member survey and other feedback mechanisms. • Enhanced levy Member reserve reporting and unearned revenue report developed for non-levy Members. • Provision of registered office services for Harness Racing Australia. • Provision of services to LBN. • AHA positions classification structure and work level standards developed. • AHA Board Charter rewritten. Deliver Member value, organisational performance enhancement and sustainable resourcing. . • Staff satisfaction survey undertaken; baseline data set created. 12 AHA’s social media channels were implemented 26 June 2016. 70 ANNUAL REPORT 2016-17

MAJOR ACHIEVEMENTS • 90% of all communications and partnerships and events activities completed • 300,000 website views in one year, in part driven by new management of Johne’s disease communications plan • Members unanimously adopted changes for AHA’s constitution • MLA endorsed as an associate member at the 2017 General Meeting • Internal audit reviews of overhead cost allocation methodology, service level agreements and ceased projects’ unearned revenue OUTLOOK 2017-18 • Enhance AHA’s digital presence and reach to producers and stakeholders. • Collaborating with Members and stakeholders in the sharing of resources and knowledge to reduce duplications. • Implement Member survey adjustments. • Improved event facilities promotion and uptake, including to external organisations. • Establishment of the Aquatic Deed with AHA custodianship, which will enable aquatic livestock industries to become Members. • Customer Relationship Management System (CRMS) implementation. • Migrate AHA data and ICT operations to cloud storage. • New business opportunities development - first stage implementation. • Review of financial systems to assess adaptability and whether upgrade or replacement is required. • Corporate overhead cost simplification. ANNUAL REPORT 2016-17 71

Corporate Governance and Services Program PROJECTS DELIVERABLES Best practice governance in accordance with Australian Institute of Company Directors guidance Board Implementation of independent Board performance review recommendations Compliance with AHA constitution (and constitution review) Strategic plan implementation and reporting against deliverables FBT/PAYG and other legislation compliance Effective and transparent cost allocation to operational projects Executive and Management Performance of AHA meets Members requirements as reflected in Member survey and other feedback mechanisms Program outcomes delivered and reported to Board and Members Effective operational management of company Adoption of AOP and reporting against deliverables TARGET Jun 2017 OUTCOME Achieved PROJECT BUDGET COMMENTS New Board Charter and a new directors selection process introduced Jun 2017 Achieved 419,890 Jun 2017 Achieved Members unanimously adopted changes for AHA’s constitution Jun 2017 Achieved M&E training undertaken to support implementation Jun 2017 Jun 2017 Achieved Achieved Jun 2017 Achieved 491,418 Jun 2017 Achieved Jun 2017 Jun 2017 Achieved Placed on hold by steering committee Achieved Enhanced levy Member reserve reporting and unearned revenue report developed for non-levy Members Cont’d 72 ANNUAL REPORT 2016-17

Effective financial Jun 2017 management and regular reporting of program performance Finance and Facilities N/A Unqualified audit opinion on annual financial statements Risk management mitigation and reporting Company-wide targeted training and professional development Improved staff survey response WHS committee is effective People Capability in supporting a healthier and safer workplace Implementation of Human Resource Strategic and People Plans Delivery of staff collaboration and knowledge sharing events Complete 85% of the deliverables of the ICT Strategy review recommendations Jun 2017 Achieved Sep 2017 Jun 2017 Jun 2017 Achieved Achieved Achieved Achieved Finance and facilities costs are applied as a corporate overhead charge to operational projects Jun 2017 Jun 2017 Achieved Baseline set Achieved 137,273 Detailed People Plan Project Plan under development for 2017-18 Jun 2017 Jun 2017 Achieved In progress 0% achieved due to resourcing and budget restrictions. A number of recommended activities have been delayed for completion until the first half of 2017-18 Deliver a records Information and Communication Technology management software review and business case 247,569 Deliver effective technology tools to AHA staff, Board and Members with limited downtime Effective management of contracted ICT service provider Jun 2017 Achieved Jun 2017 Not achieved De-prioritised in favour of CRMS scoping and specification Jun 2017 Achieved Review of technology partner services (e.g. hosted websites) undertaken resulting in consolidations and cost reductions PROJECT ACHIEVED DELIVERABLE OUTCOMES ANNUAL REPORT 2016-17 90% IN PROGRESS 5% DELAYED/NOT ACHIEVED 5% 73

Business Services and New Business Opportunities Program PROJECTS New business opportunities DELIVERABLES Develop and implement a strategy for the identification of new business opportunities Timely and effective financial management and reporting Cattle Disease Contingency Fund Trust Treasury/investment management in line with agreed policy Company secretarial and administrative support Effective regulatory compliance with ATO and ASIC Timely and effective financial management and reporting Sheep Industry Health and Welfare Trust Treasury/investment management in line with agreed policy Company secretarial and administrative support Effective regulatory compliance with ATO and ASIC Honey Bee Disease Contingency Fund Trust Potential for carried forward dissolution/audit costs TARGET Jun 2017 Jun 2017 Jun 2017 OUTCOME Achieved Achieved Achieved 12,000 Jun 2017 Jun 2017 Jun 2017 Jun 2017 Achieved Achieved Achieved Achieved 12,000 Jun 2017 Jun 2017 Jul 2016 Achieved Achieved Achieved 7,640 Honey Bee Disease Contingency Fund Pty Ltd deregistered by ASIC on 11 September 2016 following application lodged in June 2016 Industry Initiated Expenditure (Service Level Agreements) Business plans met Jun 2017 Achieved 1,557,478 PROJECT BUDGET COMMENTS 50,000 PROJECT ACHIEVED DELIVERABLE OUTCOMES 74 100% IN PROGRESS 0% DELAYED/NOT ACHIEVED 0% ANNUAL REPORT 2016-17

Communications and Partnerships Program PROJECTS DELIVERABLES Representation on national committees and submission of policy papers to strengthen the national animal health system TARGET Jun 2017 OUTCOME Achieved PROJECT BUDGET COMMENTS The following submissions were made: • Response to the Intergovernmental Agreement on Biosecurity Review Draft Report, addressing key areas that impacted on AHA and the wider national biosecurity system; worked with PHA to have shared messaging on the areas in the draft report which related to both organisations National Partnerships • Australia Farm Institute Journal submission “Can Australia’s biosecurity standards survive in a free trade era?” 282,672 • Response to the Productivity Commission: Draft Report on the Regulation of Agriculture • Support provided to the QLD WSD Response • Continued involvement in the National Communications Network Enhanced government, industry and stakeholder liaison, consultation and engagement Deliver three Member Forums Jun 2017 Achieved Jun 2017 Achieved Member survey rated 96.5% positive rating of usefulness of Member Forum content Cont’d ANNUAL REPORT 2016-17 75

Complete 90% of the deliverables of the 201617 communication and partnership activities Establish a social media presence on Facebook, Twitter and LinkedIn Communications 264,847 Jun 2017 Achieved Jul 2016 Achieved As of 30 June 4,961 people have followed AHA across the three platforms: • Facebook: 1049% increase • Twitter: 672% increase • LinkedIn: 13% increase Regular CEO, Board and cross-stream communication to improve staff engagement Event Management Complete 90% of the deliverables of the 201617 Events marketing activities Deliver two Industry Forums Deliver one joint PHA/ AHA Industry Forum Industry Forums Enhanced collaborations with PHA to maximise and report benefits to Members Consultative and timely development of agenda papers and responses to issues, to support and improve the national animal health system Jun 2017 Achieved Promote usage of an information, policy and networking hub that adds value to our Members and AHA’s business and services Jul 2016 Achieved Jun 2017 In progress Further promotion of the venue to external organisations will take place in 2017-18 64,574 Jun 2017 Jun 2017 Jun 2017 Achieved Achieved Achieved 32,000 Jun 2017 Achieved Two requests for agenda items were sent to all delegates Approximately 90% of delegates indicated the Forum meeting content was useful and met their organisational needs PROJECT ACHIEVED DELIVERABLE OUTCOMES 76 92% IN PROGRESS 8% DELAYED/NOT ACHIEVED 0% ANNUAL REPORT 2016-17

CORPORATE GOVERNANCE FOUNDATIONS FOR GOVERNANCE BOARD SELECTION AHA’s constitution prescribes the selection criteria for directors appointments and an independent selection committee comprised of representatives from the Commonwealth, State/Territory and Industry Member groups, as well as a representative of the National Farmers Federation, which recommend appointments for Members’ approval in the general meeting. BOARD CHARTER All responsibilities and activities of the Board are covered in detail in the Board charter. The charter delineates the responsibilities and role of the Board, the Chairperson, the CEO and the Company Secretary and addresses all aspects of Board appointments, activity and performance. Directors have the right of access to all company information and to the company’s Executive and, subject to prior consultation with the Chairperson, may seek independent professional advice at the company’s expense. The Board meets in person at least five times during the year, and additionally via teleconference or through consideration of out-ofsession papers as required. CONFLICTS OF INTEREST Directors declare at each Board meeting any changes to their statement of interests, which are prepared annually affirming that they have no specific interests that will impact on their ability as a Director and that any potential or perceived conflicts of interest will be declared to the Board. LEGAL COMPLIANCE Both the Corporate Governance Committee and the Audit and Risk Management Committee are charged with different aspects of monitoring assurance systems. The Company Secretary manages compliance, reporting to both committees, which 78 in turn provide advice and recommendations to the Board. The responsibilities of the committees are included in the Board charter. Membership comprises at least three directors. The committees meet at least twice each year. Auditors are provided notice of general meetings of Members and are invited to present to the Audit and Risk Management Committee when annual financial statements are considered. AUDIT AND RISK MANAGEMENT COMMITTEE FINANCIAL POLICIES AND PROCEDURES Comprehensive practices are established and included in the company’s policy and procedure manuals such that all unbudgeted expenditure and commitments require prior Board approval; financial exposures are controlled; investment of funds is governed by a specific investment policy; work health and safety standards and management systems are monitored and reviewed; and business transactions are properly authorised and executed. CONTRACTING AND TENDERING The company has adopted comprehensive policies and procedures in respect of purchasing, contracting and tendering. All contracts exceeding $40,000 in value are subject to competitive quotation. Where proposed expenditure exceeds $100,000 a formal open contracting process is used to seek competitive quotations. RESPECTING THE RIGHTS AND INTERESTS OF MEMBERS AND STAKEHOLDERS MEMBER CONSULTATION AND COMMUNICATIONS The Board aims to ensure that all Members are informed of all major developments affecting the company. ANNUAL REPORT 2016-17

COMPANY GENERAL MEETINGS COMPANY PERFORMANCE EVALUATION The Board encourages full participation of Members at the AGM. Full participation is also encouraged at a general meeting held by the company in June each year at which the AOP is presented and core subscription levels are formally agreed on by Members for the upcoming financial year. CODE OF CONDUCT The Board Charter contains a directors’ Code of Conduct with which each director is expected to comply. In addition, the company has documented standards that each manager and employee of the company is expected to operate within. The requirement to comply with these ethical standards is communicated to all employees. Directors, managers and employees are expected to strive at all times to enhance the reputation and performance of the company. RECOGNITION AND MANAGEMENT OF RISK RISK MANAGEMENT Monitoring of corporate and program risks is a specific responsibility of the Audit and Risk Management Committee. The company’s process of periodic risk assessment and review covers the business environment, work health and safety, property, financial reporting and internal control. Internal audit reviews are undertaken periodically at the direction of the Audit and Risk Management Committee. ENHANCEMENT OF PERFORMANCE BOARD PERFORMANCE EVALUATION The Board is committed to the ongoing development of both individual directors and the Board as a whole. Evaluation regularly involves the engagement of independent external expertise. ANNUAL REPORT 2016-17 79 AHA has commenced a monitoring and evaluation framework, in consultation with Members, to report on key deliverables as outlined in the Strategic Plan 2015-2020. STAFF PERFORMANCE EVALUATION Each staff Member is employed under an employment contract that specifically calls for an annual performance agreement against which performance is measured by the staff member’s manager. The performance of the CEO is evaluated on the same annual basis by the Chairperson and Board. FAIR AND RESPONSIBLE REMUNERATION DIRECTORS’ REMUNERATION The remuneration payable to directors is approved at a general meeting of the company as stipulated in the constitution. There are no schemes for retirement benefits, aside from statutory superannuation. EMPLOYEE REMUNERATION The remuneration of the CEO is set by the Board and reviewed annually as part of the CEO performance review. The remuneration of all other staff is set and reviewed by the CEO as part of their annual performance review.

FINANCIAL STATEMENTS

AUSTRALIAN ANIMAL HEALTH COUNCIL LIMITED ABN 86 071 890 956 FINANCIAL STATEMENTS For the year ended 30 JUNE 2017 82 ANNUAL REPORT 2016-17

AUSTRALIAN ANIMAL HEALTH COUNCIL LIMITED DIRECTORS’ REPORT for the year ended 30 JUNE 2017 The directors present their report together with the financial report of the Australian Animal Health Council Limited (“the Company”) for the year ended 30 June 2017 and the auditor’s report thereon. Information on directors Name: Title: Qualifications: Experience and expertise: Special responsibilities: Name: Title: Qualifications: Experience and expertise: Special responsibilities: Name: Title: Qualifications: Experience and expertise: Special responsibilities: Name: Title: Qualifications: Experience and expertise: Peter Milne Non-Executive Chairperson DipBus, FIPA, Member AICD Extensive experience in the cattle industry and as a company director, including of AHA since 2002 (and Chairperson since 2011). Member of the Audit & Risk Management Committee. Dr Bruce M Christie Non-Executive Director BVSc, MANZCVS, GAICD Extensive experience in government leadership and development of biosecurity and disease mitigation policy and strategies. Deputy DirectorGeneral Biosecurity and Food Safety NSW. AHA director since 2012. Member of Audit & Risk Management Committee. Dr Bill (William) Darmody (ceased 23 November 2016) (former) Non-Executive Director BVMS(Hons), MACVS, FAICD Extensive national and international consulting experience on animal health and food production. AHA director since 2012. Member of Corporate Governance Committee Paula Fitzgerald (commenced 23 November 2016) Non-Executive Director BA (Comms), Member AICD Special responsibilities: Extensive experience, nationally and internationally, in government and stakeholder relations, regulatory affairs and advocacy in the science and agriculture sectors, with board and committee positions on agriculture, science and training organisations. AHA director since 2016. Member of Corporate Governance Committee - 2 - ANNUAL REPORT 2016-17 83

AUSTRALIAN ANIMAL HEALTH COUNCIL LIMITED DIRECTORS’ REPORT for the year ended 30 JUNE 2017 Name: Title: Qualifications: Experience and expertise: Special responsibilities: Name: Title: Qualifications: Experience and expertise: Special responsibilities: Name: Title: Qualifications: Experience and expertise: Special responsibilities: Name: Title: Qualifications: Experience and expertise: Special responsibilities: Name: Title: Qualifications: Experience and expertise: Special responsibilities: Michelle Gorman (commenced 23 November 2016) Non-Executive Director BScAg (Syd), MSc(Reading), MMgt (MGSM), GAICD Extensive national and international experience in food and agriculture, including market access, business development and industry systems. AHA director since 2016. Member of Audit & Risk Management Committee Prof Martyn Jeggo (ceased 23 November 2016) (former) Non-Executive Director BVetMed, MSc, PhD, FAICD, MRCVS Extensive national and international experience in animal health policy development, governmental interfaces and strategic planning. AHA director since 2008. Member of Corporate Governance Committee David Palmer Non-Executive Director DipFarmMgmt, GradDipBusMgmt, FAICD Extensive mixed farming experience. Extensive national and international experience in market access, food safety, stakeholder relationships and corporate leadership. AHA director since 2011. Chairperson of Corporate Governance Committee Sharon Starick Non-Executive Director BAgSci (Hons), Member AICD Extensive experience in livestock farming, industry organisation, stakeholder relationships and as a company director. AHA director since 2010. Chairperson of Audit & Risk Management Committee Dr Len Stephens (commenced 23 November 2016) Non-Executive Director Dip Agr Sci, BVSc, MSc, PhD, GAICD Extensive experience in pathology and microbiology with CEO and directorships across livestock, seafood and R&D sectors. AHA director since 2016. Member of Corporate Governance Committee - 3 - 84 ANNUAL REPORT 2016-17

AUSTRALIAN ANIMAL HEALTH COUNCIL LIMITED DIRECTORS’ REPORT for the year ended 30 JUNE 2017 Directors’ meetings The number of directors’ meetings and attendance during the financial year were: Board Meetings Audit & Risk Management Committee No of meetings held 1 Peter Milne Dr Bruce M Christie Dr Bill Darmody Paula Fitzgerald Michelle Gorman Prof Martyn Jeggo David Palmer Sharon Starick Dr Len Stephens Objectives The vision of AHA is a resilient Australian animal health system through effective partnerships, known for its integrity, and recognised nationally and internationally. AHA’s mission is to assist our members and partners to enhance, strengthen and protect animal health and the sustainability of Australia’s livestock industries. Strategic Priorities AHA’s four strategic priorities, as set out in its strategic plan for 2015-2020 are: • Effectively manage and strengthen Australia’s emergency animal disease response arrangements through successful partnerships with members; • Enhance the emergency animal disease preparedness and response capability of AHA and its members; • Strengthen biosecurity, surveillance and animal welfare to enhance animal health, and support market access and trade; and • Deliver member value, organisational performance enhancement and sustainable resourcing. The strategic priorities are to be delivered through the implementation of specific strategies with specific deliverables, with progress and success monitored, evaluated and reported against success measures. Principal activities The principal activities of the company were, working with members, to develop and deliver projects to keep Australia free of new and emerging diseases and improve animal health, enhance market access and foster the resilience and integrity of the Australian animal health system. AHA plays an active role in maximising the effectiveness of government, industry partnerships and consultative mechanisms to manage livestock biosecurity risks which helps Australia maintain its enviable disease free status and contributes to its strong reputation for food safety product integrity . 5 5 3 2 2 3 5 5 2 No of meetings attended 5 5 3 2 2 3 4 5 2 No of meetings held 1 3 3 1 2 1 No of meetings attended 3 3 1 1 1 2 1 1 1 1 1 1 0 1 1 1. Reflects the number of meetings held including the board and board committees convened by conference call during the time the director held office during the year. Corporate Governance Committee No of meetings held1 No of meetings attended 1 1 1 - 4 - ANNUAL REPORT 2016-17 85

AUSTRALIAN ANIMAL HEALTH COUNCIL LIMITED DIRECTORS’ REPORT for the year ended 30 JUNE 2017 Review and result of operations AHA’s income declined to $15.54 million from $16.25 million in 2015/16. Industry member levies were down $1.0m on the prior year at $6.95 million reflecting market conditions and budget. The impact of reduced levy income was offset to some extent by the increases in core subscriptions and special project funding. The one-off recognition of income from taking up 51% of the equity in LBN Pty Ltd, $0.45m, and closing the book on long-completed projects, $0.33m, made up for the one-off Sheep Industry Health & Welfare Trust transfer in 2015/16. Core operations were $4.49 million, up from $4.07 million in 2015/16, following members’ agreement to annual inflationary increases to core subscriptions, ensuring continued quality of key service delivery. Special program expenditure of $9.17 million was substantially lower than 2015/16 at $12.64 million, and lower than budget of $9.59 million. In 2016/17, six projects did not commence, others were substantially under budget. By contrast, in 2015/16 there were substantial over budget positions for surveillance projects in particular, relating to prior year disease cycles. The 2016/17 under-budget projects result has led to a corresponding increase of $2.26 million in the unearned revenue balance, now $4.81 million. An operating surplus of $1.81 million has been delivered against a budgeted deficit of ($0.26 million), and 2015/16 deficit of ($0.52 million). The surplus is reflected in cash, investments and total equity. State of affairs On 2 September 2016, AHA acquired 51% of the share capital in Livestock Biosecurity Network Pty Ltd for nil consideration. In the opinion of directors this is the only significant change in the state of affairs of the company that occurred during the financial year under review, not otherwise disclosed in this report or the financial report. Member commitment on winding up The company is limited by guarantee and in the event of the company being wound up, every member of the company undertakes to contribute an amount not exceeding $100. Auditor’s independence and non-audit services The Auditor’s independence declaration is set out on page 24 and forms part of the directors’ report. During the year, RSM, the company’s auditor, have not performed services in addition to their statutory duties. Directors’ interests and benefits Since the end of the previous financial year, no director has received or become entitled to receive any benefit (other than a benefit included in the aggregate amount of remuneration received by or due to directors shown in the financial statements) by reason of a contract made by the company or a related company with a director or with a firm of which they are a member, or have a substantial financial interest. Insurance of officers and directors Insurance premiums of $6,842 have been paid in 2016/17 on behalf of its directors and officers for professional liability insurance. The policies relate to costs incurred in defending proceedings, civil or criminal, whatever their outcome, and other liabilities arising from their position with the exception of conduct involving a wilful breach of duty or improper use of information or position to gain a personal advantage. Signed in Canberra on 20 September 2017 in accordance with a resolution of directors: Peter Milne Chairman - 5 - Sharon Starick Director 86 ANNUAL REPORT 2016-17

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017 NOTES 2017 $ Revenue from members Interest income Receipts of investment in associate Other income TOTAL REVENUE Core activities Special activities Share in loss of associate Levy collection costs TOTAL EXPENDITURE OPERATING SURPLUS /(DEFICIT) BEFORE INCOME TAX EXPENSE Income tax attributable to operating surplus NET OPERATING SURPLUS / (DEFICIT) 1(f) 3 2(b) 2(a) 14,136,393 339,234 454,026 607,559 15,537,212 (4,491,200) (9,172,545) (5,131) (56,997) (13,725,873) 1,811,339 - 1,811,339 2016 $ 15,604,398 382,672 - 259,048 16,246,118 (4,071,051) (12,642,555) - (53,425) (16,767,031) (520,913) - (520,913) ANNUAL REPORT 2016-17 87

BALANCE SHEET AS AT 30 JUNE 2017 NOTES CURRENT ASSETS Cash and cash equivalents Held-to-maturity investments Inventory held for distribution Trade and other receivables Other TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment Investment in associate TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Unearned revenue Lease restoration provision Employee benefits TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Employee benefits TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Accumulated members' funds TOTAL EQUITY 12 4 4 5 6 7 2017 $ 6,056,769 13,282,180 3,651,446 1,314,347 49,609 24,354,351 2016 $ 1,656,966 12,513,805 3,651,446 1,989,326 28,610 19,840,153 8 300,679 9 448,895 749,574 25,103,925 360,977 - 360,977 20,201,130 10 3,491,872 11 4,808,031 36,371 322,191 8,658,465 2,675,391 2,545,401 36,371 189,297 5,446,460 12 43,588 43,588 8,702,053 16,401,872 164,137 164,137 5,610,597 14,590,533 16,401,872 16,401,872 14,590,533 14,590,533 88 ANNUAL REPORT 2016-17

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017 NOTES CASHFLOW FROM OPERATING ACTIVITIES Cash receipts in the course of operations Cash payments in the course of operations Interest received NET CASH FLOWS GENERATED FROM/ (USED IN) OPERATING ACTIVITIES CASHFLOW FROM INVESTING ACTIVITIES Acquisition of held-to-maturity investments Purchase of property, plant and equipment NET CASH FLOWS USED IN INVESTING ACTIVITIES Net increase /(decrease) in cash and cash equivalents held Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 4 2017 $ 2016 $ 18,135,506 (13,248,003) 303,931 5,191,434 14,418,292 (15,623,349) 382,672 (822,385) (768,375) (23,256) (791,631) 4,399,803 1,656,966 6,056,769 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2017 ACCUMULATED MEMBERS’ FUNDS $ Balance at 30 June 2015 Operating deficit for the year Balance at 30 June 2016 Operating surplus for the year Balance at 30 June 2017 15,111,446 (520,913) 14,590,533 1,811,339 16,401,872 TOTAL EQUITY $ 15,111,446 (520,913) 14,590,533 1,811,339 16,401,872 (6,813,805) (381,507) (7,195,312) (8,017,697) 9,674,663 1,656,966 ANNUAL REPORT 2016-17 89

AUSTRALIAN ANIMAL HEALTH COUNCIL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 1. SIGNIFICANT ACCOUNTING POLICIES The financial reports of Australian Animal Health Council Limited for the year ended 30 June 2017 are issued in accordance with a directors’ resolution of 20 September 2017. The principal accounting policies adopted in the preparation of the financial statements are set out below and consistently applied to the years presented, unless otherwise stated. New or amended Accounting Standards and Interpretations adopted The company has adopted all of the new or amended Accounting Standards and interpretations issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period. (a) Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements (‘AASB-RDRs’) and Interpretations issued by the Australian Accounting Standards Board ('AASB'), and associated regulations and the Corporations Act 2001, as appropriate for not-for-profit entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IASB'). The financial statements are presented in Australian dollars. (b) Statement of Compliance The company is a not-for-profit, private sector entity. Therefore the financial statements of the company are tier 2 general purpose financial statements which have been prepared in accordance with AASB–RDRs (including Australian Interpretations) adopted by the AASB and the Corporations Act 2001. (c) Use of estimates and judgements The preparation of financial statements in conformity with AASB-RDRs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on experience and other factors that are believed to be reasonable in the circumstances, the results of which form the basis of judgements regarding the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. These accounting policies have been consistently applied by the company. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. (d) Revenue Industry levies collected by the Commonwealth - The Australian government collects levies from AHA ‘industry levy members’ under the authority of the Australian Animal Health Council (Live-stock Industries) Act 1996. AHA receives an amount equal to levies collected. Revenue received in accordance with the Act is treated as a non-reciprocal transfer and recognised as income when received. Direct member subscriptions - Core subscriptions for all classes of members are set by the company at general meeting. Subscriptions are recognised as income when the subscription becomes receivable. - 10 - 90 ANNUAL REPORT 2016-17

AUSTRALIAN ANIMAL HEALTH COUNCIL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Special programs revenue - Special program funding is agreed on a project by project basis, on condition that specified project services are delivered and specific conditions met. This funding is considered to be a reciprocal transaction. Income is recognised as services are performed and conditions met. To the extent services are not met, cash received is recognised as a liability – ‘unearned revenue’. Interest income - is recognised as accrued using the effective interest method. Other revenue - includes minor and/or ad hoc and one-off revenue sources. (e) Operating leases The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset, even if that right is not explicitly specified. Payments made under operating leases are recognised in the statement of comprehensive income on a straight line basis over the term of the lease. (f) Income tax Under the provisions of Section 50-1 and 50-40 of the Income Tax Assessment Act 1997, as amended, the company is eligible for exemption from income tax and currently no tax provision has been provided for in the financial statements. Such eligibility is reviewable by the Australian Taxation Office (ATO). (g) Other taxes Revenues, expenses and assets are recognised net of the goods and services tax (GST), except where the GST incurred is not recoverable from the ATO. The net GST recoverable from, or payable to the ATO is included as a current asset/liability in the balance sheet. Cash flows are included in the statement of cash flows on a gross basis. The GST components of the cash flows, arising from investing and financing activities, which are recoverable from, or payable to, the ATO are classified as operating cash flows. Commitments and contingencies are stated with the amount of GST included. (h) Foreign currency Foreign currency transactions are translated to Australian currency at the rate of exchange at the dates of the transactions. (i) Treasury policy AHA’s treasury policy is to invest funds with a minimum of two financial institutions which have a credit rating of at least AA equivalent, in guaranteed products. (j) Inventories held for distribution AHA holds inventories of antigens in guaranteed quantities in specialist banks in the event of a disease outbreak of anthrax or foot and mouth disease. The inventories are valued at cost due to the guaranteed delivery over the multi-year provisioning contracts. (k) Trade and other receivables AHA’s terms are typically settlement within 30 days, though vary for members according to circumstances. Receivables are carried at amount due. The collectability of debts is assessed at balance date and provision made for any doubtful accounts. - 11 - ANNUAL REPORT 2016-17 91

AUSTRALIAN ANIMAL HEALTH COUNCIL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (l) Impairment AHA assesses whether there is any indication that an asset may be impaired. If so, an estimate of recoverable amount is made. Where the carrying amount of an asset exceeds its recoverable amount it is considered impaired and written down to its recoverable amount. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if AHA were deprived of the asset, its value in use is taken to be its depreciated replacement cost. For 2016/17 no assets are considered to be impaired. (m) Property, plant and equipment Plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses. Non-capital repairs and maintenance are recognised as expenses as incurred. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount, these are included in the income statement. Depreciation is calculated on a diminishing value basis over the estimated useful life of the specific assets as follows: • Furniture and fittings • Office equipment • ICT • Office Fitout 2017 20% 20-33 1/3% 33 1/3% 14.29% 2016 20% 20-331/3% 33 1/3% 14.29% (n) Trade and other payables Trade and other payables are carried at nominal cost, representing goods and services provided prior to end of the financial year that are unpaid and arise when AHA becomes obliged to make future payments in respect of the purchase of these goods and services. (o) Employee benefits Current liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled within 12 months of reporting date are measured at the amounts expected to be paid when the liabilities are settled. Non-current liabilities for annual leave and long service leave not expected to be settled within 12 months of reporting date are measured as the present value of expected future payments to be made for services provided by employees up to the reporting. Consideration is given to likely future wage rises, historical trends of departures and periods of service. - 12 - 92 ANNUAL REPORT 2016-17

AUSTRALIAN ANIMAL HEALTH COUNCIL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (p) Equity accounting Although AHA holds 51 percent of Livestock Biosecurity Network Pty Ltd shares and has significant influence, AHA does not have ‘control’. The investment in LBN is therefore equity accounted (refer to note 9). Significant influence is the power to participate in the financial and operating policy decisions of the investee but it is not control over those policies. The results and assets and liabilities of associates are incorporated in the financial statements using the equity method of accounting. The equity investment is initially recorded at cost and subsequently adjusted to reflect the investor’s share of the net assets of the associate (investee). (q) New Accounting Standards AASB 15 Revenue from contracts with customers This standard is applicable to annual reporting periods beginning on or after 1 January 2019 for not-for-profit entities. Replaces all existing standards on revenue, and establishes a fivestep process for revenue recognition: • Identify the contract with a customer • Identify the performance obligations in the contract • Determine the transaction price • Allocate the transaction price to the performance obligations • Recognise revenue when the performance AHA currently accounts for project revenue in line with performance obligations and therefore does not foreshadow a significant implementation challenge, nor a greater deferral of revenue. AASB 16 Leases This standard is applicable to annual reporting periods beginning on or after 1 January 2019. A comprehensively revamped lease accounting model, which largely ends the previous distinction between operating and finance leases: • All leases greater than 12 months must be recognised on balance sheet as a lease liability and a related right to use asset, based on the present value of future lease payments. • A new requirement to consider renewal options which are reasonably likely to be exercised when calculating the lease term. • The expenses related to leases will appear in the income statement as interest on the lease liability and depreciation on the right-to-use asset – not as a rental expense. • No significant change for accounting by lessors AHA will be impacted by this standard in particular for the lease of its premises in Turner. AASB 1058 Income of Not-for-Profit Entities This standard is applicable to annual reporting periods beginning on or after 1 January 2019. Substantially alters the requirements of the existing AASB 1004 Contributions and clarifies the treatment of the receipt of income by not-for-profit entities. Income where there is an associated performance obligation should be recognised in line with the principles of AASB 15, whereas donations with no future obligation may be recognised immediately. In addition, assets or services received at below market value (such as peppercorn leases) must be recognised at fair value. AHA typically has performance obligations for its receipts and is therefore not likely to be impacted by this standard. - 13 - ANNUAL REPORT 2016-17 93

2. REVENUE 2017 $ 2(A) REVENUE FROM MEMBERS1 Levy Collection2 Transfers from Trusts Direct member subscriptions Other revenue for special programs TOTAL REVENUE FROM MEMBERS 2(B) OTHER INCOME Completed projects surplus funding Duck industry voluntary levy3 . Subscriptions and private grants Gate signs Training resources Event room hire Reimbursement of industry contribution for R&D matched funds Other 7,414,699 - 2,939,526 3,782,168 14,136,393 2016 $ 8,360,305 898,182 2,767,644 3,578,267 15,604,398 331,487 - 80,000 121,631 25,883 15,000 10,815 - 22,743 607,559 9,362 185,868 16,232 259,048 - 47,536 - 1 2 3 1 Member groups consist of the Commonwealth, State/Territory governments, industry, service providers and associates. AHA’s core programs are funded according to member resolution at general meeting. Special programs are funded according to contributing members’ agreement. Industry members for whom the Commonwealth collects levies under the authority of the Australian Animal Health Council (Live-stock Industries) Act 1996, contribute by that means. 2 Pursuant to the Act, an amount equivalent to the levies collected by the Commonwealth is paid to AHA. Levy collections are made up of two components, those for use by AHA in program delivery and EADRA levies, to repay previous emergency disease response events the Commonwealth has underwritten. Levies for use by Industry amounted to $6.945 million and EADRA levies for the repayment of avian influenza events amounted to $0.47 million (chicken and egg industries). 3 The duck industry also made a voluntary levy contribution in 2015/16 of $80,000 in accordance with the provisions of the deed entered into with AHA during that year for the management of funds in the duck industry levy reserve, accounted for under a different account code. 94 ANNUAL REPORT 2016-17

3. EXPENSES 2017 $ EMPLOYEE BENEFITS EXPENSE Salaries, wages and accrued leave entitlements Workers compensation insurance Superannuation - defined contribution plans TOTAL EMPLOYEE BENEFITS EXPENSE ADMINISTRATION AND PROGRAM EXPENSES Audit fees Directors fees Consultants and contractors State member services delivery4 . Commonwealth member services delivery4 Property operating Levy collection costs Share in loss of associate Other administration and program expenses Depreciation and amortisation 2,735,630 11,406 311,913 3,058,949 2016 $ 2,737,281 10,030 224,129 2,971,440 26,400 29,663 221,912 3,778,097 2,452,070 138,503 341,967 56,997 5,131 3,562,293 83,554 10,666,924 13,725,873 256,226 8,782,224 - - 369,280 53,425 - 4,259,309 45,484 13,795,611 16,767,051 4 4 Prior year ‘State member services delivery’ and ‘Commonwealth member services delivery’ was included in Consultants and contractors. ANNUAL REPORT 2016-17 95

4. CASH AND HELD TO MATURITY INVESTMENTS 2017 $ Cash on Hand Cash at Bank – Cheque account Cash at Bank – Reserve account 400 19,156 6,037,213 6,056,769 6 Month Term Deposit at 2.60% p.a. 6 Month Term Deposit at 2.60% p.a. 6 Month Term Deposit at 2.60% p.a. 12 Month Term Deposit at 2.50% p.a. 90 Day Notice Deposit at 2.60% p.a. 3 Month Term Deposit at 2.95% p.a. 4,000,000 6,000,000 3,200,000 82,180 - - 13,282,180 19,338,949 5. INVENTORIES HELD FOR DISTRIBUTION 2017 $ Anthrax antigen bank inventory at cost (2012/13) Foot & mouth disease antigen bank inventory at cost (2014/15) 75,667 3,575,779 3,651,446 6. RECEIVABLES 2017 $ Trade receivable Other receivables Industry levies receivable GST Receivable 837,955 35,303 441,089 - 1,314,347 7. OTHER ASSETS 2017 $ Prepayments 49,609 49,609 96 2016 $ 28,610 28,610 ANNUAL REPORT 2016-17 2016 $ 1,374,828 - 544,850 69,648 1,989,326 2016 $ 75,667 3,575,779 3,651,446 2016 $ 400 1,363,707 292,859 1,656,966 - - - 82,180 9,208,743 3,222,882 12,513,805 14,170,771

8. PROPERTY, PLANT AND EQUIPMENT OFFICE EQUIPMENT COST Balance at 1 July 2015 Additions BALANCE AT 30 JUNE 2016 Balance at 1 July 2016 Additions BALANCE AT 30 JUNE 2017 83,525 8,978 92,503 92,503 23,256 115,759 DEPRECIATION AND IMPAIRMENT LOSSES Balance at 1 July 2015 Depreciation for the year BALANCE AT 30 JUNE 2016 Balance at 1 July 2016 Depreciation for the year BALANCE AT 30 JUNE 2017 CARRYING AMOUNTS At 30 June 2016 AT 30 JUNE 2017 FIXTURES AND FITTINGS 210,087 71,036 281,123 281,123 - 281,123 ICT OFFICE FITOUT TOTAL - 47,232 47,232 47,232 - 47,232 - 254,261 254,261 254,261 - 254,261 293,612 381,507 675,119 675,119 23,256 698,375 58,572 8,935 67,507 67,507 14,973 82,480 210,087 - 5,868 215,955 215,955 16,517 232,472 11,070 11,070 11,070 15,729 26,799 - 19,610 19,610 19,610 36,334 55,944 268,659 45,484 314,142 314,142 83,554 397,696 24,996 65,168 33,279 9. INVESTMENT IN ASSOCIATE 2017 $ 51% equity in Livestock Biosecurity Network Pty Ltd 448,895 448,895 10. TRADE AND OTHER PAYABLES 2017 $ Trade accounts payable Accrued expenses GST Payable 1,010,969 2,202,153 278,749 3,491,872 2016 $ 115,724 2,559,667 - 2,675,391 2016 $ - - 48,650 36,162 20,433 234,651 198,317 360,977 300,679 ANNUAL REPORT 2016-17 97

11. UNEARNED REVENUE 2017 $ Opening Balance Aged and completed projects income recognised Core & special project subscriptions in advance 2016/17 receipts for incomplete projects Other movements Special program receipts not yet recognised as income 2,545,401 (902,801) 800,429 2,464,645 (99,643) 4,808,031 4,808,031 12. EMPLOYEE BENEFITS 2017 $ Employee Benefits Carrying amount at end of financial year - Current Carrying amount at end of financial year - Non-Current A) NUMBER OF EMPLOYEES AT YEAR END 365,780 322,191 43,588 31 2016 $ 353,434 189,297 164,137 26 2016 $ 3,783,328 - 34 - (1,237,961) 2,545,401 2,545,401 13. RECONCILIATION OF CASH FROM OPERATING ACTIVITIES TO OPERATING RESULT 2017 $ OPERATING RESULT Non-cash flows in operating result depreciation & amortisation receipt of investment in association share in net loss OTHER MOVEMENTS Net changes in working capital: change in inventories change in trade & other receivables change in other assets change in trade & other payables change in subscriptions in advance change in unapplied special program funds change in provisions NET CASH FROM OPERATING ACTIVITIES 98 1,811,339 83,554 (454,026) 5,131 - 2016 $ (520,913) 45,484 - - - - - 674,979 (20,999) 816,481 (34) 2,262,664 12,345 5,191,434 (322,009) 2,226 1,305,315 (118,795) (1,237,980) 24,287 (822,385) ANNUAL REPORT 2016-17

14. RELATED PARTIES a). Cattle Disease Contingency Fund Pty Ltd The company has a 25% shareholding in Cattle Disease Contingency Fund Pty Ltd (CDCF), trustee for the Cattle Disease Contingency Fund Trust. The shareholding is in ‘B’ class shares meaning the company is not entitled to any dividends or capital returns. AHA is entitled to appoint a director and this is included in the CEO’s duties. Transactions with the CDCF as trustee were as follows: 2017 $ REVENUE Received from CDCF for administrative services 11,280 11,280 2016 $ 18,371 18,371 b). Sheep Industry Health and Welfare Pty Ltd The company has a 33.3% shareholding in Sheep Industry Health and Welfare Pty Ltd (SIHW), trustee for the Sheep Industry Health and Welfare Trust. The shareholding is in ‘B’ class shares meaning the company is not entitled to any dividends or capital returns. AHA is entitled to appoint a director and this is included in the CEO’s duties. Transactions with the SIHW as trustee were as follows: 2017 $ REVENUE Received from SIHW for administrative services 11,280 11,280 15. COMMITMENTS The company’s future minimum operating lease payments are as follows: 2017 $ REVENUE Within one year After one year but not more than five years5 After more than five years5 295,832 1,274,778 - 1,570,610 2016 $ 286,597 1,570,610 - 1,857,207 2016 $ 8,807 8,807 16. KEY MANAGEMENT PERSONNEL In addition to the Board of directors, the follow key management personnel during the year were: KEY MANAGEMENT PERSONNEL: Kathleen Plowman – Chief Executive Officer Tony Marks – Executive Manager, Corporate & Member Services & Company Secretary Peter Dagg – Executive Manager, Emergency Preparedness & Response Services Duncan Rowland – Executive Manager, Biosecurity & Product Integrity Services DIRECTORS AND KEY MANAGEMENT PERSONNEL REMUNERATION FOR YEAR WAS $928,355 (2016: $1,116,002) 5 5 Lease commitments include those for the AHA’s office premises in Turner. The lease commenced 1 July 2015 and will terminate on 30 June 2022. ANNUAL REPORT 2016-17 99

AUSTRALIAN ANIMAL HEALTH COUNCIL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 DIRECTORS’ DECLARATION 1 In the opinion of the directors of Australian Animal Health Council Limited (the company): (a) (i) (ii) the financial statements and notes, are in accordance with the Corporations Act 2001, including: giving a true and fair view of the company’s financial position as at 30 June 2017 and of their performance for the financial year ended on that date; and complying with Australian Accounting Standards – Reduced Disclosure Requirements and other mandatory professional reporting requirements; and (b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. 2 The directors have been given declarations equivalent to those required by Section 295A of the Corporations Act 2001 from the Chief Executive Officer and Executive Manager – Corporate & Member Services for the financial year ended 30 June 2017. Signed in accordance with a resolution of the directors: ____________________________ Peter Milne Chairman ____________________________ Sharon Starick Director Dated at Canberra, ACT this 20th day of September 2017 - 23 - 100 ANNUAL REPORT 2016-17

AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the audit of the financial report of Australian Animal Health Council Limited for the year ended 30 June 2017, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (i) (ii) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and any applicable code of professional conduct in relation to the audit. RSM AUSTRALIA PARTNERS Canberra, Australian Capital Territory Dated: 20 September 2017 G M STENHOUSE Partner 24 ANNUAL REPORT 2016-17 101

INDEPENDENT AUDITOR’S REPORT To the Members of Australian Animal Health Council Limited Opinion We have audited the financial report of Australian Animal Health Council Limited (the Company), which comprises the statement of financial position as at 30 June 2017, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration. In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Company's financial position as at 30 June 2017 and of its financial performance for the year then ended; and (ii) complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other Information The directors are responsible for the other information. The other information comprises the information included in the Company's annual report for the year ended 30 June 2017, but does not include the financial report and the auditor's report thereon. 25 102 ANNUAL REPORT 2016-17

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Auditor's Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf. This description forms part of our auditor's report. RSM AUSTRALIA PARTNERS Canberra, Australian Capital Territory Dated: 20 September 2017 GM STENHOUSE Partner 26 ANNUAL REPORT 2016-17 103

ABBREVIATIONS AAA Australian Alpaca Association Inc. AAVET Australian Government Accredited Veterinarian (Livestock) AAVet Training ACMF Australian Chicken Meat Federation ADF Australian Dairy Farmers ADMA Australian Duck Meat Association AGM Annual General Meeting AgSOC Agriculture Senior Officials Committee AHA Animal Health Australia AHC Animal Health Committee AHiA Animal Health in Australia AHSQ Animal Health Surveillance Quarterly ALFA Australian Lot Feeders Association AOP Annual Operating Plan APAV Accreditation Program for Australian Veterinarians APL Australian Pork Limited AVA Australian Veterinary Association AUSVETPLAN Australian Veterinary Emergency Plan BERTA Biosecurity Emergency Response Training Assessment CCA Cattle Council of Australia CCEAD Consultative Committee on Emergency Animal Diseases CEO Chief Executive Officer CRC Cooperative Research Centre CRMS Customer Relationship Management System CSIRO Commonwealth Scientific and Industrial Research Association DA Dairy Australia DAWR Department of Agriculture and Water Resources DPI Department of Primary Industries EAD Emergency Animal Disease EADRA Emergency Animal Disease Response Agreement FMD Foot-and-Mouth Disease GICA Goat Industry Council Australia 104 ANNUAL REPORT 2016-17

HRA Harness Racing Australia IAHER International Animal Health Emergency Response ICT Information and Communications Technology JD Johne’s Disease LBN Livestock Biosecurity Network LiveCorp Australian Livestock Export Corporation Ltd LPA Livestock Production Assurance M&E Monitoring and Evaluation MLA Meat & Livestock Australia NAC National Aquaculture Council Inc. NAHIS National Animal Health Information System NAMP National Arbovirus Monitoring Program NBRT National Biosecurity Response Team NLIS National Livestock Identification System NLTG National Laboratory Task Group NMG National Management Group NSDI National Significant Disease Investigation NSDIP National Significant Disease Investigation Program PHA Plant Health Australia RA Racing Australia R&D Research and Development RD&E Research, Development and Extension RRT Rapid Response Team S&G’s Standards and Guidelines SCA Sheepmeat Council of Australia SWF Screw–Worm Fly TSEFAP Transmissible Spongiform Encephalopathy Freedom Assurance Program WHA Wildlife Health Australia WPA WoolProducers Australia WSD White Spot Disease VPEGS Veterinary Practitioner Enhanced General Surveillance ANNUAL REPORT 2016-17 105

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