###### Melbourne Convention and Exhibition Centre (Expansion Stage)

The Melbourne Convention and Exhibition Centre Expansion Project (Stage 2) was announced in the 2015–16 Budget. The project was delivered as a modification under the existing Melbourne Convention Centre Development (MCCD) Project. The project extended the existing MCEC facilities, adding nearly 20,000 square metres of flexible, multi-purpose event space, including meeting rooms, a new banquet hall and 9,000 square metres of new exhibition space, and a central hub linking to the existing MCEC facilities. On 28 May 2016, the State entered into a Project Agreement with MECE Project Pty Ltd (the Concessionaire) for the design, construction, partial financing and maintenance of the MCEC Expansion over the project’s operating term to 2034. The project operation term is 16 years for partial build cost. The MCEC Expansion was officially opened on 8 July 2018, with Commercial Acceptance achieved on 13 July 2018.

###### Leasing arrangements

Operating leases mainly relate to accommodation with lease terms of between 2 and 20 years. All operating lease contracts contain market review clauses in the event DJPR exercises its option to renew. DJPR does not have an option to purchase the leased assets at the expiry of the lease period.

($ thousand)
2019
Non-cancellable operating leases
Not longer than one year	61,101
Longer than one year but not longer than five years	154,334
Longer than five years	23,563
Non-cancellable operating leases (inclusive of GST)	238,998
less less GST recoverable from the ATO	(21,727)
Non-cancellable operating leases (exclusive of GST)	217,271
i. GST is not applicable to leases relating to overseas offices, which are included in this note.

#### 7.3 Cash flow information and balances

Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and those highly liquid investments with an original maturity of three months or less, which are held for the purpose of meeting short-term cash commitments rather than for investment purposes, and which are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. For the purpose of the cash flow statement, cash includes cash-on-hand and in bank (including funds held in trust), net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the cash flow statement is reconciled to the related items in the balance sheet as follows:

##### 7.3.1 Cash and cash equivalents

($ thousand)
2019
Cash and short term deposits	45,277
Funds held in trust	466,594
Balance as per cash flow statement	511,871

Due to the State of Victoria's investment policy and government funding arrangements, DJPR does not hold a large cash reserve in its bank accounts. Cash received by DJPR from the generation of income is generally paid into the State's bank account, known as the Public Account. Similarly, any departmental expenditure, including those in the form of cheques drawn by DJPR for the payment of goods and services to its suppliers and creditors are made via the Public Account. The process is such that, the Public Account would remit to DJPR the cash required for the amount drawn on the cheques. This remittance by the Public Account occurs upon the presentation of the cheques by the department's suppliers or creditors.

50

DJPR Annual Report 2018–19