Annual Report

2003 Contacts Table Of Contents Annual Report 2003

For further information, please contact:

Jan Stewart Chief Executive Officer

Postal Address: Lotterywest P.O. Box 1113 Osborne Park Western Australia 6917

Street Address: 74 Walters Drive Osborne Park Western Australia 6017

Telephone + 61 8 9340 5100 Facsimile + 61 8 9242 2577

E-mail: [email protected] Internet: www.lotterywest.wa.gov.au

Page 2 of 93 Page 3 of 93 Contacts Table Of Contents Annual Report 2003

OVERVIEW...... 6 Who We Are ...... 6 What We Do...... 6 What We Aim For...... 6 Highlights of the Year ...... 6 Where The Money Came From.....And Where It Went ...... 7 Performance At A Glance...... 8 CEO’S REPORT ...... 10 LEGISLATION IMPACTING ON LOTTERYWEST ...... 14 Enabling Legislation...... 14 Ministerial Directives ...... 14 Other Legislation Impacting on Lotterywest...... 15 Publications Available to the Public...... 15 ABOUT US ...... 16 OUR LOTTERY BUSINESS ...... 16 Lotto Products...... 16 Scratch’n’Win ...... 17 OUR RETAILERS...... 18 Other Products...... 18 OUR CUSTOMERS ...... 20 OUR SUPPORT FOR OUR COMMUNITY ...... 21 Support For Hospitals And Public Health Services ...... 21 Support For The Arts...... 21 Support for Sports...... 22 Support for the Perth International Arts Festival ...... 22 Support for the Western Australian Film Industry...... 23 OUR GRANT APPLICANTS...... 23 OUR DIRECT GRANT PROCESSES ...... 26 OUR PEOPLE AND ENVIRONMENT...... 28 Our Working Environment...... 28 Lotterywest People ...... 28 Staff Statistics ...... 29 Staff Profiles...... 30 Workplace Reform ...... 31 Staff Development...... 31 Staffing Policies ...... 31 Recruitment...... 31 Occupational Health Safety and Welfare ...... 31 Worker’s Compensation and Rehabilitation...... 31 Industrial Relations ...... 31 OUR ORGANISATION...... 32 Board of Commissioners...... 33 Retailers Consultative Panel...... 34 Advisory Committees and Technical Panels ...... 34 COMMUNICATING WITH OUR STAKEHOLDERS ...... 35 Audit Committee and Internal Audit ...... 35 Insurance premiums paid to indemnify members of the Board...... 35 STRATEGIC & BUSINESS PLANNING...... 37 Information Technology Planning and Development...... 37 Disaster Recovery Planning...... 38 Our Investment in the Future ...... 38 COMPLIANCE WITH GOVERNMENT REPORTING POLICIES...... 40 Reports on Customer Outcomes ...... 40 Reports on Accountability and Compliance Issues ...... 40 STRATEGIC PLAN 2000-2003, PERFORMANCE MEASURES...... 42 Community and Customer ...... 42 Business Processes & Innovation...... 42

Page 2 of 93 Page 3 of 93 Table Of Contents Statement of Compliance Annual Report 2003

People and Learning...... 43 Financial Performance ...... 43 OUTPUT SUMMARY TABLES...... 44 Outcome Number 1 – Lottery Products ...... 44 LOTTERY PRODUCTS...... 44 Outcome Number 2 – Community Funding...... 45 COMMUNITY FUNDING...... 45 CERTIFICATION OF PERFORMANCE INDICATORS...... 46 AUDITOR GENERAL’S OPINION ON PERFORMANCE INDICATORS...... 47 KEY PERFORMANCE INDICATORS (AUDITED)...... 48 ANNUAL ACCOUNTS...... 51 AUDITOR GENERAL’S OPINION ON FINANCIAL STATEMENTS...... 52 STATEMENT OF FINANCIAL PERFORMANCE...... 53 STATEMENT OF FINANCIAL POSITION...... 54 STATEMENT OF CASH FLOWS ...... 55 NOTES TO THE FINANCIAL STATEMENTS...... 56 1. Significant Accounting Policies...... 56 2. Trading Profit...... 59 3. Forfeited Prizes ...... 60 4. Retailer Fees...... 60 5. Player Registration Service ...... 60 6. Net Profit or Loss on Disposal of Non-current Assets ...... 60 7. Other Revenues From Ordinary Activities ...... 61 8. Remuneration of Auditor...... 61 9. Building and Facility Management ...... 61 10. Corporate Management ...... 61 11. Gaming System Management...... 62 12. Non-Gaming System Management ...... 62 13. Product Management...... 62 14. Retail Network Management ...... 63 15. Depreciation ...... 63 16. Funding Management ...... 63 17. Community Funding ...... 64 18. Other Financial Assets ...... 64 19. Inventories...... 65 20. Receivables...... 65 21. Work in Progress...... 65 22 Property, Plant & Equipment ...... 66 23. Payables...... 67 24. Provisions...... 67 25. Equity ...... 68 26. Commitments for Expenditure...... 68 27. Notes to the Statement of Cash Flows...... 69 28. Explanatory Statement...... 70 29. Financial Instruments ...... 72 30. Remuneration of Members of the Accountable Authority and Senior Officers ...... 73 31. Segment Information ...... 74 OPERATING BUDGET FOR 2004 ...... 75 Notes to the Budget for 2003/2004 ...... 76 FIVE YEAR SUMMARY OF FINANCIAL DATA ...... 78 Direct Grants Summary ...... 79 Direct Grants Program Summary...... 79 Direct Grants List ...... 80 Reconciliation of Direct Grants ...... 92 GLOSSARY ...... 93

Page 4 of 93 Page 5 of 93 Table Of Contents Statement of Compliance Annual Report 2003

For the Year Ended 30 June 2003

HON. NICK GRIFFITHS LLB MLC MINISTER FOR HOUSING AND WORKS; RACING AND GAMING; GOVERNMENT ENTERPRISES; LAND INFORMATION

In accordance with Section 66 of the Financial Administration and Audit Act 1985, we hereby submit to the Minister for Government Enterprises, for information and presentation to Parliament, the Annual Report of the Lotteries Commission for the financial year ended 30 June 2003. The Annual Report has been prepared in accordance with the provisions of the Financial Administration and Audit Act 1985 and the Lotteries Commission Act 1990 (as amended).

KEVIN V CAMPBELL AM ROGER LEWIS Chairman Commissioner Accountable Authority Accountable Authority 28th August 2003 28th August 2003

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WHO WE ARE Inspiring - to our staff and all stakeholders The Lotteries Commission of Western Australia, to achieve greater things for the benefit of the established under the Lotteries Commission Act community 1990 (as amended) (the Act), is a statutory authority Trusted - to be honest, reliable, trustworthy with responsible for selling lottery games and distributing a long term commitment to the community. the proceeds and profits for the benefit of the Engaging - to partner with other organisations and Western Australian community. In April 2003 the people to develop our business and the community. Lotteries Commission adopted the trading name Lotterywest. Our vision is: To be recognised as a key corporate citizen of WHAT WE DO Western Australia and a leader in the global lottery Through a State-wide network of lottery retailers industry and all our areas of business.” Lotterywest sells and markets a variety of lottery HIGHLIGHTS OF THE YEAR games, namely Lotto (Saturday Lotto, OZ Lotto, Powerball Lotto and Super 66), Scratch’N’Win OUR GAMES • instant lottery tickets, Cash 3 (a three digit numbers Lotterywest achieved sales of $490.9M. game) and Soccer Pools (a sports game based on • Lotterywest recorded Australia’s highest per soccer matches). capita sales of Saturday Lotto, OZ Lotto, Powerball Lotto and Super 66. The proceeds from the sale of lottery products are returned to the community in various ways • 25 game Slikpiks, continue to be a major according to the provisions of the Act (see Enabling contributor to Saturday Lotto sales performance Legislation), including, via State Treasury, for the providing in excess of 22% of base week sales. support of public health services, and for arts and • The Saturday Lotto June 2003 Super Draw sports organisations. ($22M) was the best performing mid year super Lotterywest also directly distributes to Western draw ever generating sales in excess of $14M. Australian charitable and community groups, a ($6.57 per capita spend) compared to $5.81 in significant proportion of the proceeds and profits 2002/2003) from lottery sales through a range of grant funding • Outback Adventure, a $3 long play Scratch’N’Win programs, which are administered by our Community game launched in March 2003 and on the market Funding section. for only 12 weeks, was an instant success and contributed $3.6M in sales.

WHAT WE AIM FOR OUR CONTRIBUTION TO THE COMMUNITY Lotterywest fulfils the objectives of the Lotteries • A record $143.9M in Lotterywest funding Commission Act and operates in accordance with was approved for distribution to the Western relevant legislation, Government policy and ethical Australian community. standards. • A record $75.1M was provided to health services. Our Statement of Strategic Intent is: Sports and Arts each received $9.4M. “Our purpose is to provide funds and support to the • 1509 direct grants amounting to $51.4M were community of Western Australia through excellence approved for distribution to charitable and and integrity in our lottery business. community groups throughout the State and to the Perth International Arts Festival and the Our commitment is to: Western Australian film industry. • perform to the highest ethical, professional and OUR PLAYERS commercial standards; Players in Western Australia won: • work in partnership with others who are • committed to strengthening and building $280.4M in prizes from lottery games; community life; • 83 Division 1 Lotto prizes totalling $74.7M; and • develop productive working relationships with • 18 prizes in excess of $1M. our business partners; and OUR SUPPORT TO THE WA BUSINESS COMMUNITY • create a corporate culture which encourages the • Lotterywest’s Retailers, comprising mainly of unique contribution of each person. small Western Australian businesses, received Our core attributes are to be: commissions of $37.4M. • Rewarding - to ensure our players, staff and all Over $19.3M in contract payments were made stakeholders value their experience of Lotterywest to Lotterywest’s suppliers including $16M to and their lives are enriched by that experience. Western Australian firms.

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WHERE THE MONEY CAME FROM.....AND WHERE IT WENT

Our Income

Soccer Pools Scratch'N'Win $1.38M $73.57m Super 66 $4.27M Cash 3 $5.13M

Other Income $12.51M

Saturday OZ Lotto Lotto $51.66M $263.42M Powerball $86.35M

Our Expenditure

Retailers' Operating Commission Expenditure $37.43M $32.59M

Hospital Fund $75.05M

Direct Grants $50.11M Prizes $280.39M

Arts $9.38m Sport $9.38M

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PERFORMANCE AT A GLANCE

Sales per Capita (Adult) $ per Capita 342 324 306 288 270 252 234 216 198 180 1999 2000 2001 2002 2003 303.35 307.08 308.84 302.87 321.03

Total Sales $ M 500 450 400 350 300 250 200 150 1999 2000 2001 2002 2003 Cash3 4.67 4.27 4.41 4.67 5.13 Scratch'n'Win 79.97 84.06 72.62 73.64 78.64 Lotto & Pools 346.27 356.32 378.20 376.45 407.08

Australian Lottery Industry Sales per Capita (Adult) $ per Capita 325 (excl Keno and Melbourne Cup) 300 275 250 225 200 175 150 1999 2000 2001 2002 2003 NSW 196.0 190.3 201.5 201.8 225.1 QLD 265.1 264.2 257.9 255.5 265.7 SA 185.8 191.6 208.6 208.2 279.0 TATT 204.7 204.5 215.5 216.1 244.3 WA 303.3 307.1 308.8 302.9 321.0

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$ M Total Funds Committed Net of Direct Grants Written Back 80 70 60 50 40 30 20 10 0 1999 2000 2001 2002 2003 Hospital 67.91 69.88 71.42 71.42 75.05 Direct Grants 41.60 37.26 44.80 45.45 50.11 Sports/Arts 16.97 17.47 17.85 17.85 18.76

Funding Distribution

Sport $9.38M Arts $9.38M

Perth International Arts Hospital Fund Festival $3.60M $75.05M

Film Industry $0.70M

Direct Grants $45.81M

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CEO’S REPORT our own staff. These results are reported in detail in this report, demonstrating that our effectiveness Overview and efficiency indicators have been maintained and in some instances improved and that our standing in On April 27 2003, the Lotteries Commission of the community as a responsible provider of gaming Western Australia launched our new name and new services and funding to the community continues. image – Lotterywest. This was the culmination of more than two years of planning and research. A Legislation and Government Policy project which began with the goal of updating our retail image, first introduced in 1992, expanded to This year, as required by an amendment introduced become a total corporate rebranding exercise. As to the Act in 1992 relating to the funding of the Perth we explored the opportunity for introducing a new International Arts Festival and the Commercial Film and modern image for our Retail Outlets, it became Industry, we undertook a review of that section of clear that we needed to make a more profound the Act. This requires that the Minister determine change in the organisation. if the use of the funding by the recipients has been “appropriate” and to determine if the funding should The new name, Lotterywest, with the new logo, continue. became simple shorthand for affirming that we are the lottery for the community of Western Australia In consultation with the University of Western and led to a new focus for the marketing of our Australia, the governing body for the Perth products. But more than that, has become an International Arts Festival and ScreenWest, the expression of a wide range of internal business statutory authority responsible for the distribution of improvement processes to ensure that the new funding to the Commercial Film Industry in Western look represents a new and improved way of doing Australia, a brief review was undertaken. business and of relating to our many beneficiaries This report was tabled in Parliament by the and stakeholders. There is still much to be done Minister in February 2003. The report confirms the to achieve the goals we have set for ourselves in significant achievements of the Perth International this new branding exercise, but already it has been Arts Festival and the considerable developments in enthusiastically received by our public, our own staff, the Commercial Film Industry in Western Australia our Retailers and our funding beneficiaries. as the result of the enhanced investment in that In March, one month before the launch of Lotterywest, industry. It has been recommended and accepted by we celebrated the anniversary of the establishment the Minister that the current funding arrangements of the Lotteries Commission in Western Australia. continue. In that month in 1933, the Board of the Lotteries The legislation under which Lotterywest operates, Commission made its first distribution of grants to the Lotteries Commission Act 1990 (as amended), over 40 Western Australian charitable organisations. remains an appropriate and very flexible legislative Many of those are still in existence and we continue base upon which to operate a contemporary lottery. our proud tradition of supporting organisations such No change to the legislation is contemplated at this as the Royal Flying Doctor Service; Parkerville time. Children’s Home; St John’s Ambulance and many In November 2002, the Productivity Commission, other important Western Australian organisations which had undertaken a review of the gambling This past year has been a significant one for all industry in Australia initiated by the Federal aspects of our business. Our sales reached an all Government, undertook a second brief review of time record of $491M, $36M (8%) above last year the industry. This report continued to document and $23M (5%) above budget. Our total return to concerns about the overall expansion of the gambling the community in 2003 was a record $144M which industry in Australia, particularly on the East coast included $75M for the State’s health services, $9.4M of Australia. The report confirmed the overall net for the Arts Lottery Account and $9.4M for the Sports benefit to the community of the lotteries industry as Lottery Account. An all time record of $51.4M was a subset of the gambling industry in Australia as the distributed directly by Lotterywest to 1509 community only part of the industry where a net benefit can be groups in Western Australia. clearly demonstrated. We continue to develop our “balanced scorecard” As required by the Interactive Gambling Legislation method of reporting, which recognises that we Act, the Federal Government has called for not only have responsibilities to optimise our submissions as to whether the current provisions financial returns to our beneficiaries, but we must of the Australian Interactive Gambling Legislation manage our business, taking into account all our should be amended in any way. Lotterywest differing responsibilities to our stakeholders, to our contributed to the submission prepared by the community, to our players, to our Retailers and to Department of the Premier and Cabinet, which

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effectively recommended that the current legislative success. The members of the Australian lotteries arrangement should continue. industry meet four times a year for planning and game administrative purposes. Business and Economic Environment The Western Australian economy has experienced International Issues – Lottery Association 3.8% growth in the past twelve months, with a growth Lotterywest continues to contribute to the World forecast of 4% for the next twelve months Lottery Association, which began with the hosting of The overall economic climate, while not significantly a major international lottery industry conference in impacting immediately on lottery business, does Perth in 1995. I have continued my responsibilities have some impact on consumer confidence, which as the inaugural Chairman of the Asia Pacific Lottery was demonstrated in the financial year 2001/2002 Association (APLA) and by virtue of that position am when our sales were $500,000 below the previous a member of the World Lottery Association Executive year. The improved results this year have come Committee. The Asia Pacific Lottery Association from a combination of factors – ie. a price rise consists of lotteries from all around South East Asia, was introduced to our major game Saturday Lotto Australia, New Zealand, Japan, China, Hong Kong, in December last year and the vast majority of Singapore, Malaysia, Korea, the Philippines, India our players maintained their current purchasing and others. habits or increased their spend. There were a In November last year Lotterywest hosted a seminar number of high Powerball jackpots. The launch of in Perth on retail distribution and supported the World Lotterywest provided an opportunity to review our Lottery Association in offering a parallel seminar on overall marketing strategy. This has had a clear security issues in the lotteries industry. impact on the performance of all products, including Lotterywest hosts a web site for APLA and provides Scratch’N’Win. newsletters for the membership. Lotterywest The generally positive economic climate was clearly contributes to the World Lottery Association gambling to our advantage. These upward sales trends research facility known as GRADE. During the can be seen nationally in the performance of our course of the year Lotterywest hosted delegations other partners in the Australian lotteries industry. from APLA members, including representatives Lotterywest’s overall share of the Australian lottery from the Thai Lottery and of the Mizuho Bank Ltd market is 18%, 8% above our 10% share of the which operates the lottery in Japan on behalf of the Australian population. Overall, the per capita spend Japanese Lottery Association. on lottery products at $4.82 exceeds the per capita spend of the jurisdiction closest to us – Tattersall’s, Technology and Cross Border Issues operating in Victoria, Tasmania, the ACT and Northern Despite the many predictions of the future impact Territory, at $3.65. per capita. While this level of of new technology on the gambling industry and market penetration can be attributed to our overall the moving into the distribution of lottery and other marketing strategies and demonstrably the support gambling products via the Internet by some of the we receive from our customers for our funding role in gaming industry, we have no evidence that this the community, the limited competitive environment has had any significant impact on our business in in the gaming industry in Western Australia is clearly Western Australia. The Code of Conduct of the also a factor. World Lottery Association, requires that its members, ie government authorised lotteries, sell their National Issues and Bloc Relationships products only to players within their own licensed Lotterywest has been a member of a consortium jurisdictions. This means that Western Australians comprised of the other Australian lotteries known cannot purchase lottery products from any legitimate as the Australian Lotto Bloc since 1981, when all offshore or Australian lottery sites. the States, excepting New South Wales at the time, The opportunity to offer electronic services to came together to administer the Saturday Lotto our customers continues to be monitored and game. This partnership has grown and now includes through our Player Registration Service we provide formal “Bloc” agreements to operate all three Lotto results, special promotions and other information games (Saturday Lotto, OZ Lotto and Powerball electronically to players. At this point, we have Lotto), Soccer Pools and Super 66 (an add-on not been able to demonstrate a business case for “Spiel” game to Lotto). With New South Wales offering the capacity to purchase lottery products joining the Australian Lotto Bloc in 2000 (ie Saturday electronically. Lotto), the importance of this business partnership continues to grow. Over 80% of Western Australia’s lotteries revenue comes from Bloc products, making our national partnerships crucial to our long term

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Retail Distribution of the gaming industry and representatives of the The representation of Lotterywest to our public Department for Community Development. Through by our lottery Retailers is one of the most critical the Problem Gambling Support Committee the success factors in our business. This year has seen members contribute on a voluntary basis for the even further renewed emphasis on the importance funding of telephone counselling services for problem of the appropriate selection, support, training and gamblers, for public awareness programs and for provision of financial rewards to our Retailers. research. Research demonstrates convincingly that the level of problem gambling in Western Australia When the price rise to Saturday Lotto was introduced is at a far lower level than that in the other parts of (the first price rise since 1995) we took the opportunity Australia where other forms of gambling are available to move to an add on commission structure consistent to the public. with all the other lotteries in Australia. This enabled us to offer increased commission to our Retailers in Leadership in the Community recognition of their support to our business. Lotterywest has a unique role in Australia in This year we ended a very important “pilot” initiative providing direct funding programs. Ensuring that our where 42 members (10%) of our network were funds distribution remains flexible and responsive selected to participate in a project to determine if to changing community needs is a priority for our the provision of targeted sales information, coaching organisation. The Lotteries Commission Act 1990 and assistance with sales training for Retailers gives us very broad discretion to support initiatives and their staff and other incentives, could improve that are designed to assist the most disadvantaged the performance of our network. The results of members of our community, as well as providing this program demonstrated conclusively that with facilities and services that contribute to all aspects more focussed attention and support, the selected of our community. To that end, we have supported group of Retailers improved their performance on important community celebrations and events, such average 6% compared with the rest of the network as the annual Australia Day celebrations, the Anzac at the same period of time. This program will now Day commemorative events and other community be expanded in the course of the forthcoming year events and festivals. Of particular pride this year, across the entire network. was the completion of what will be known as the We have also determined a new process for Retailers Lotterywest Federation Walkway, a beautiful walk coming into the network, whereby all those interested and tree top bridge through the Botanic Gardens in purchasing a business with a Lotto Licence will be at King’s Park. This will be opened officially by the required to attend an orientation program prior to Premier in August 2003. purchase and to attend a new style training program. We have continued our forum known as Business All other policies and procedures in relation to Lotto Community Partnerships and have completed the licensing and retail standards and procedures are first stage of our research on understanding how being reviewed and improved. Business Community Partnerships are currently Lotterywest maintains a policy of offering new operating in Western Australia. We see this as an Lotto Licences only to those locations where clear important initiative given that so many of our grant growth for our business has been convincingly recipients are very dependent upon support from demonstrated. This means that at most in recent business and other sectors of our community apart times 2-3 new Licences are offered a year and those from ourselves and government funding. We have are only in new or expanded shopping centres where been working to identify how both business and a high level of shopper traffic can be expected, or community can be brought together in more effective in country areas which meet our customer service ways by learning from others experiences. obligation policy. This year, as part of our funding for research, a One of the most significant projects in the very significant grant of $4M was made towards the forthcoming year will be the implementation of the establishment of a medical research biotechnology new Lotterywest retail image. We expect this to platform which will build a world class research commence roll out in November 2003 and is likely to facility in Western Australia. take 3-4 years before the entire network has adopted the new look. Our Staff The Lotterywest project has been one of the most Problem Gambling Support Committee demanding ever undertaken by our relatively small Lotterywest continues our membership of the staff. The project has been managed in addition to Problem Gambling Support Committee chaired by the the increasing demands of every day operations, the Director General of the Gaming Commission. This launch of the Saturday Lotto price rise and many is a committee made up of senior representatives other initiatives. Our staff numbers are still relatively

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low given the range of activities in which we are to the community. involved and in order to complete the Lotterywest This growth strategy, which observes our own ethical project, a number of contractors have been hired to standards and government gaming policy, will likely assist in the change process. include this year the launch of a new product. It will The State Wages Policy has created some significant also include the continued strategic management management challenges, with the reversion of many and support of our distribution network and the of our staff from the 40 hour Workplace Agreement further development of our Lotterywest marketing arrangement of the past, to a 371⁄2 hour week. As a strategy. These strategies mean that we can result of the reduced working hours available to the continue to forecast our return to our beneficiaries organisation, we have had to reduce the hours we will remain at their current level in real terms for are open to the public. In the forthcoming year, the the next three years and that we can continue reduced hours are likely to have other impacts on to maintain our creative and flexible approach to our capacity, particularly with information technology our financial support for the community sector in related projects, to meet targeted deadlines. A Western Australia. range of strategies will be examined to ensure that we can continue to meet our business goals without increasing our labour costs. Our comprehensive staff development program (formerly entitled People ’03), now known as Lotterywest People, has made good progress this year. This program has reviewed organisational structure and introduced customised leadership and management training and a new performance JAN STEWART development program. Our achievements are the CHIEF EXECUTIVE OFFICER result of the combined efforts of every member of the 28TH AUGUST 2003 Lotterywest team and I am grateful to everyone for their contribution to this excellent result.

The Minister and Our Board Our six member Board has the responsibility under the Lotteries Commission Act 1990 for the governance of the business and for recommendations to the Minister for grants to charitable and community organisations. This year there has been no change to Board membership. I would like to place on record my appreciation to the Minister for Government Enterprises, the Hon. Nick Griffiths LLB MLC and our Chairman, Kevin Campbell and all members of the Board for their contribution to our business, their support to my executive team and their representation of the Commission at many community events.

Summary and Forecast for the Future Lotterywest has achieved a record year with a high level of market penetration of our products consistently in the top five in the world for per capita sales of Lotto and the highest for overall per capita sales in Australia. We have demonstrated this year that it is still possible, even in a very mature market, to achieve revenue growth with the very slowly growing population in Western Australia. The challenge to maintain responsible growth for our beneficiaries continues with the need to invest regularly in research, new product development, new technology and with the ever increasing costs of marketing existing products. We have set a sales target for 2003/2004 of $500.0M and $149.7M return

Page 12 of 93 Page 13 of 93 Legislation Legislation Annual Report 2003

LEGISLATION IMPACTING ON LOTTERYWEST

ENABLING LEGISLATION Lotterywest is responsible for distributing funds to The Lotteries Commission, established in 1933, eligible organisations through its community funding currently operates under the Lotteries Commission programs. This includes allocations for the Perth Act 1990 (as amended) (the Act) and in accordance International Arts Festival and the commercial with the rules and regulations governing the film industry through the statutory authority, operation of lottery games. In April 2003, under ScreenWest. the provisions of the Lotteries Commission Act, the Lotteries Commission adopted the trading name MINISTERIAL DIRECTIVES Lotterywest The Act (Section 74) contains a provision that gives the Minister the power to direct Lotterywest with Under the Act Lotterywest has the following respect to its functions and powers. responsibilities and powers; No Ministerial directives were received during the • To conduct lotteries other than continuing lotteries financial year. in the whole or any part of the State; • To conduct games of Lotto; • To conduct Soccer Pools; and • To perform any other function vested in it by the Act. The last function includes the important role of distributing funds to eligible organisations in accordance with the provisions of the Act. Lotterywest is responsible to the Hon Nick Griffiths LLB, MLC as the Minister for Government Enterprises. The Hon Nick Griffiths is also the Minister for Housing and Works, Racing and Gaming and Land Information. The Minister appoints a Board of Commissioners (the Accountable Authority) which is responsible for overseeing all operations of Lotterywest. One of the Board’s key responsibilities is to make recommendations, for the Minister’s approval, concerning the distribution of funds available to community organisations via Lotterywest’s Direct Grants programs. With respect to the proceeds of lottery sales the Act specifies that: • a prescribed portion of the proceeds be allocated to specific State Treasury accounts for hospitals, sports and the arts. • a prescribed portion of the proceeds be allocated and distributed directly to eligible organisations for benevolent and charitable purposes including The University of Western Australia (for the Perth International Arts Festival) and ScreenWest (for the Western Australian commercial film industry); and • any residual funds, after the appropriate provisions for all remunerations, allowances, expenditures and expenses, is distributed directly to eligible organisations Lotterywest plays no part in the distribution of funds deposited in the State Treasury’s Hospital Fund and the Sports and Arts Lotteries Accounts. However

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OTHER LEGISLATION IMPACTING ON PUBLICATIONS AVAILABLE TO THE LOTTERYWEST PUBLIC In the performance of its functions Lotterywest The following publications, relating to the activities complies with the following relevant written laws of Lotterywest, are available to the public from Lotterywest’s headquarters: Competition Policy Reform (Western Australia) Act • Lotteries Commission Enabling Legislation* 1996 Copyright Act 1968 (Commonwealth) • Rules governing the operation of lottery games* Copyright Act 1895 (State – repealed) • 2003-2005 Strategic Plan (revised) Disability Services Act 1993 • Lotterywest Information Statement Electoral Act 1907 (as amended) • “How to Play” brochures** Equal Employment Opportunities Act 1984 • Financial Administration and Audit Act 1985 “Introducing Lotterywest” Freedom of Information Act 1992 * Available for reference only Gaming Commission Act 1987 ** Also available from Lotterywest Retailers Government Employees’ Superannuation Act 1987 Industrial Relations Act 1979 Lotterywest also maintains a web site for public State Records Act 2000 viewing this is available at: Minimum Conditions of Employment Act 1993 www.lotterywest.wa.gov.au Occupational Health Safety and Welfare Act 1984 Public Sector Management Act 1994 Salaries and Allowances Act 1975 State Supply Commission Act 1991 Statutory Corporations (liability of Directors) Act 1996 Trustees Act 1962 (as amended) Worker’s Compensation and Rehabilitation Act 1981 Workplace Agreement Act 1993

In the financial administration of Lotterywest, we have complied with the requirements of the Financial Administration and Audit Act 1985 and other relevant written law, and exercised controls which provide reasonable assurance that: the receipt, expenditure and investment of moneys; the acquisition and disposal of public property; and incurring of liabilities have been in accordance with legislative provisions. At the date of signing, we are not aware of any circumstances which would render the particulars included in this statement misleading or inaccurate.

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ABOUT US OUR LOTTERY BUSINESS Strategic Objective: Optimise product sales

Result: Sales of $490.85M, 8.0% above previous year (target $467.5M)

Result: % of adults buying our products; 85%

Goal: % of adults buying our products; 80%

Among the year’s highlights was the revenue received build player awareness of this entry option. New from the sales of Lotterywest products of $490.85M. television commercials featuring “Ever wish you had This was $23.35M (5.0%) higher than budgeted another chance” supported the sales campaigns. sales for the year ($467.50M). The excellent sales While the December 2002, $28M Megadraw performance was due to Saturday Lotto price rise achieved sales of $16.2M ($7.58 per capita spend), (22.5% inclusive of retailer Commission), continuing slightly ahead of the previous year’s Megadraw, the strong demand during Super Draws and Megadraws June $22M Megadraw was outstanding. The June and the increased incidence of Powerball Jackpots Megadraw was supported by an intensive integrated which occurred during the year. The strong marketing effort using mass media, direct marketing awareness of the new Lotterywest brand and the and player promotions. These contributed to the new product brands, which were part of the new branding strategy, also contributed to the overall sales result. The new branding was introduced in April 2003 and utilised in both television and press advertisements in the last quarter of the year. Scratch’N’Win sales were strong throughout the $M year, particularly in the $3 and $4 price categories. The success of “Hit Me”, “Lucky Duck”, “Bonus 250 Crossword”, “Outback Adventures” and “Operation” tickets strongly contributed to $78.64M sales result, $5.1M (6.9%) above budget.

LOTTO PRODUCTS 200 Overall, our Lotto products recorded a 8.4% increase on the previous years sales and a 4.8% increase on budgeted sales for the year.

Saturday Lotto 150 The sales return form Lotterywest’s flagship brand, Saturday Lotto was $263.42M. This was $10.48M (4.1%) higher than the budget and $21.36M higher than 2001/2002 sales. The strong performance was 100 due to a steady increase in base week sales, the price rise (22.5%) implemented on 1 December 2002 and the excellent performance of the Super Draws and Megadraws held during the year. Slikpik 25 continued to be a major contributor to 50 Saturday Lotto’s sales performance making up 22.6% of base week sales and up to 30.2% of Super Draw and Megadraw sales. This year four Super Draws of $17M, $17M, $18M and $19M were held 0 with two Megadraws of $22M and $28M. Specific 1999 2000 2001 2002 2003 sales campaigns were run throughout the year to 213.9 227.9 230.5 242.1 263.4

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sales result of $14.02M ($6.57 per capita spend Powerball Lotto compared to $5.81per capita in 2001/2002), $2.42M Powerball sales for the year were $86.35M, $8.69M (20.9%) above budget and $2.78M (24.8%) above (11.2%) above budget and $11.98M (16.1%) over the June 2002 Super Draw result. Lotterywest’s last year’s results. Sales from Powerball Lotto are per capital spend remains the highest amongst the highly dependent on high level jackpots and changes Australian jurisdictions for these special draws. to the jackpot sequence during the year resulted in a Other promotional activities included partnering $30M jackpot in September 2002 and $20M jackpots with Channel 7 and The West Australian to produce in September 2002 and February 2003. special unpaid editorial features in the lead up to the December and June Megadraws. In December, Channel 7, for the second year running, ran a Lotto related story each night in the news and in June the station produced a special half hour “Today Tonight” $M program about Lotto and Lotto winners. 90 OZ Lotto Sales of OZ lotto are heavily dependent on the 80 incidence of jackpots and the levels the jackpots reach. Although 26 jackpots occurred during the year compared to 27 during 2001/2002, the jackpot 70 levels reached during 2002/2003 were lower than in 2001/2002. The lower jackpot levels resulted in a 60 slight decline in sales from the previous year. Sales for 2002/2003 were $51.66M, $0.49M (0.9%) lower than budget and $2.42M (4.5%) lower than in 2001/ 50 2002.

40

30 $M

20

50 10

0 40 1999 2000 2001 2002 2003 75.4 70.8 85.9 74.4 86.4

30 SCRATCH’N’WIN Sales for Scratch’N’Win in 2002/2003 were particularly strong and reflected the considerable work which had been undertaken to improve the ticket 20 portfolio across all price points. Further research was undertaken into the various target market segments to better understand player interest in the products. This resulted in the introduction of a new brand 10 proposition, “It’s fun discovering what’s underneath.” Television commercials and point of sale were developed to support this brand proposition. The calendar of events for the year included specific 0 product promotions, the introduction of specific ticket 1999 2000 2001 2002 2003 web sites and creative use of press to promote 49.5 50.7 55.0 54.1 51.7 specific games.

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Despite excellent overall product sales results, the player preferences at all price points. Some of the $1.00 and $2.00 Instant Ticket sales continued to more successful Scratch ‘N’ win products this year show a slight decline. Players are attracted to the were: longer play games and promotional ticket games and • Outback Adventures as a result, a revised strategy is being developed for implementation in 2003/2004 which will better reflect The Outback Adventures ticket was the big success story of 2002/2003 in the $3 long-play category. Not only did the ticket sell out in only twelve weeks, but it also had a positive impact on Bonus Crossword sales. The ticket was supported by an integrated advertising campaign, which utilised The West $M magazine as a mechanism for teaching players how 90 to play the ticket.

80 • Lucky Duck The most successful $4 launch for 2003, Lucky 70 Duck was a card game based ticket with a quirky communications campaign. This ticket sold out in 60 just eight weeks, against a budget of twelve weeks.

50 OTHER PRODUCTS Super 66, a national add-on game to Lotto achieved 40 sales of $4.27M, $0.03M (0.7%) under budget and $0.30M (6.5%) under last year’s result. Because 30 of the limited potential for sales growth, marketing support continues to be confined to point of sale 20 branding only. All jurisdictions in Australia are experiencing a decline in the product. 10 Cash 3, a local daily numbers game continues to grow. Sales for the year were $5.13M, $0.45M 0 (9.7%) above budget and $0.46M (9.9%) up on last 1999 2000 2001 2002 2003 year. Promotion of the game is achieved through the TV Game 5.3 4.1 2.3 0.0 0.0 nightly draws on Channel 7. Show/Telespin Soccer Pools, a national sports based game, Instant $1 24.0 19.2 14.4 11.9 11.3 continues as a minor product and retains a Instant $2 10.7 9.4 9.3 9.0 8.4 reasonably loyal following. Sales for the year totalled Instant $3 32.6 34.7 36.1 37.2 44.5 $1.38M, $0.18M (11.6%) under budget and $0.01M Instant $4 2.6 3.4 2.4 9.0 9.8 (0.7%) up on last year’s result. Due to the low level Instant $5 4.8 8.9 6.9 5.4 3.8 of sales, support for the brand in minimal however Instant $6 0.0 0.0 0.0 0.8 0.0 during the next financial year a series of promotions will be trialed in order to increase the popularity and Instant $10 0.0 4.4 1.3 0.4 0.8 participation in the game.

OUR RETAILERS Strategic Objective: Optimise the marketing and distribution of products

Result: Marketing & distribution costs as % of sales; 3.30%

Goal: Marketing & distribution costs as % of sales, 3.17%

lottery products. The importance of the retail Lotterywest’s sales success in 2002/2003 results network supporting the marketing campaigns with from a year of targeted marketing which included quality customer service and selling skills was clearly both in-store promotions to players plus incentives demonstrated throughout this year. to Retailers and staff to increase sales on specific A specific pilot program to trial increased support to

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Retailers to assist with sales growth commenced in their outlets. early 2003. Following evaluation of the pilot, lessons learnt and results will be applied more broadly across Rewarding Performance the retail network during 2003/04. The pilot focused A comprehensive retailer incentives program on increasing the sales performance of participating operated throughout the year including Lotterywest’s outlets. A range of business development strategies Peak Performance Program which rewards retailers were implemented and support was given through for sales results, customer service and retail sales training, sales development planning, in-store standards. promotions as well as linking player incentives with marketing campaigns. The 42 participating retail Peak Performance outlets all experienced improved sales results for the The Peak Performance Program’s 2002/2003 duration of the pilot. Retailer of the Year winner was Kristy Middlemass of Ellenbrook Lottery Centre and News – Lotterywest Retail Network congratulates Kristy and her staff for their Lotterywest’s Retail Distribution network currently achievements throughout the year. consists of 571 outlets of which 481 are online, offering all lottery products and 90 selling Instant This program was also evaluated during the year Only products. During the year two new outlets were for effectiveness from both Lotterywest’s outcome added to the network, both of which were community requirements and the perspective of participation service obligation (CSO) outlets. CSO outlets are retailers. A new program is currently in design stage approved for rural and remote population areas and will be implemented in 2003/2004. which meet Lotterywest’s criteria for population size and distance from other approved outlets. Also Retailer Training and Development during the year 4 outlets voluntarily handed back The training and development program was their licences (3 Instant Only and 1 On-line) plus comprehensively reviewed during 2002/03 there were 60 changes in ownership of outlets (55 with changes already incorporated into retailer On-line and 5 Instant Only). training programs. Further changes are in design development stage with rollout across the network A new Licence Agreement was issued during the during 2003/04. year with 153 retailers being offered and accepting this Agreement. A revision of the Standards and A total of 47 training courses were offered to outlet Procedures Manual was also undertaken to align it owners and staff this year. Nine presentations at with the requirements under the new Agreement. WAANA seminars were also conducted about the licence process and related policies and procedures A review of the licensing administration process was also undertaken this year with changes proposed for Retailers Consultative Panel implementation during 2003/2004. The changes will provide greater opportunity for potential retailers to It has been a challenging year for the Retail fully understand the lottery business and Lotterywest Network as the Lotterywest brand commenced requirements before purchasing a business with a implementation and work on the Retail Shopfit Image lottery licence. progressed. Our Retailer’s Consultative Panel again greatly assisted Lotterywest throughout this process, A pilot research project was undertaken in the which included input to the shopfit design and retailer Fremantle area to improve our understanding of uniforms. demographic changes impacting sales results. The pilot provides a sound research model for Lotterywest gratefully acknowledges the invaluable application to other metropolitan regions undergoing contributions of the panel members during 2002/ demographic change. 2003 and recognises their considerable input into the rebranding project. New syndicate management guidelines were implemented during the year to improve consistency across the network of administration practices, including meeting any requirements under Privacy legislation. Eighteen business meetings were held across the State during the year to update retailers with progress on the Retail Shopfit Design Project. This project will be finalised in late 2003 providing the retail network with a design manual to guide them in implementing the new Lotterywest retail image into

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OUR CUSTOMERS Strategic Objective: Customers highly satisfied with service levels

Result: Average score of retailers against customer service standards; 74%

Goal To achieve a customer service standard of 84%

Strategic Objective: Loyal player base

Result % of players base committed to our brand 55%

Goal To achieve a loyal player base of 52%

Our success is dependent on meeting the changing to assist us monitor the effect of the Saturday Lotto expectations of our players. Lotterywest remains price rise and determine the level of loyalty of players committed to improving the range of products and both pre and post price rise. As a result, adjustments services we provide to our players and a number to our marketing strategies were developed which of projects were undertaken this year along these have assisted us to maintain loyalty, sales growth lines. and brand profitability. Projects that have directly or indirectly improved the The automatic renewals strategy for PRS members services we provide to our players have included: was upgraded during the year. This strategy has • Lotto - Slikpik 25 - communications strategy assisted players in registering with the service at reviewed and upgraded with a new positioning membership expiry. When advising players of line – “Ever wish you had another chance?” This renewal, other promotional messages relevant to included TV, Press, POS and outdoor posters specific draws and/or Scratch ‘N’ Win tickets were (Ad Shels). In support of the December $28M also included. Megadraw, a Direct Mail campaign was introduced to PRS players which resulted in increased player interest in our Slikpik 25. • Scratch’N’Win – new tickets, were introduced specifically designed to appeal to our core target markets. These tickets included Outback Adventures, Lucky Duck, Cash ‘N’ Cars and Austin Powers. In support of these new products and to retain player loyalty we introduced a range of Relationship/E- marketing strategies (Direct Mail, SMS and E-mail) to players registered for PRS or who had entered via specific promotional competitions. These strategies were used for the October, December, February and April Super Draws. We also used similar strategies for high level Oz Lotto and Powerball jackpots. The marketing database development software package, ‘eknowhow’, was also introduced to assist us develop a Scratch’N’Win web site and member database. This has resulted in increased player interaction, involvement and loyalty to the brand. Market Research (Continuous Tracking), used to monitor and assess brand health, was pivotal in providing background information into the development of the Lotterywest brand and product brands and the associated communications strategies. We used a range of research strategies

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OUR SUPPORT FOR OUR COMMUNITY

Strategic Objective: Meeting statutory and direct community funding requirements

Result: Grant payments as a % of total sales; 29.3%

Goal: Grant payments as a % of total sales; 29.7%

Our lottery business is driven by our mission to raise Society, Steps Youth Company and skadada. funds for the Western Australian community. There is no doubt that Western Australia’s cultural life In 2002/2003 our sales results meant we could would be significantly diminished without Lotterywest provide funding to the community totalling $143.9M - funding for ArtsWA. The following outlines some of the highest in Lotterywest’s history and $9.2M higher the initiatives undertaken by these organisations than the previous year. during the year: The benefits of both our statutory funding and • 2002 was the 50th Anniversary of WA Ballet. direct grants are felt across the entire community of Celebrations included major regional touring Western Australia. throughout Western Australia and seasons in both Melbourne and Sydney. SUPPORT FOR HOSPITALS AND PUBLIC • 2003 is the 75th Anniversary of WA Symphony HEALTH SERVICES Orchestra, celebrated with a major commissioning While not always well recognised, Western program and the appointment of new Chief Australia’s public hospitals and health services are Conductor, Matthias Bamert. the biggest ‘winner’ from our lottery business. In • In 2002, Craftwest undertook a significant industry accordance with our legislation, 40% (approximately development project to foster the development of 16 cents in every dollar of sales) of net subscriptions the fine wood and studio furniture sector of Western is provided to the Hospital Fund held by Treasury for Australia’s timber industry, which is undergoing a the benefit of the State’s public hospitals. In 2003 major transition as a result of the abrupt cessation this amount totalled $75.1M. These funds go into a of old growth logging in the State. general revenue account and contribute to a range of • The WA Youth Orchestra toured 84 young major capital works projects. musicians to Europe and UK in early 2003. • Multi-media performance group, skadada was part SUPPORT FOR THE ARTS of the Australian arts and cultural contingent at the As with our contribution to the Hospital Fund, our Shanghai International Arts Festival in late 2002. support for arts is determined as a percentage of our • lottery sales. 5% (2 cents of every dollar of sales) of Magabala Books is an Indigenous Australian net subscriptions is provided to the Department for publishing house, based in Broome. It publishes Culture and the Arts for distribution, through ArtsWA works by Aboriginal and Torres Strait Islander to numerous arts organisations around the State. In authors and editors. Recent publications include 2003 this amounted to $9.4M and contributed to the ‘Busted Out Laughing’, the memoirs of Noongar funding of West Australian arts organisations in the woman, Dot Collard, an international actress following ways: and national treasure. Also ‘Out of the Desert’, a magnificent new collection, features seventeen • core funding of the four major performing arts Walmajarri storytellers and artists. organisations Black Swan Theatre Company; • Buzz Dance Theatre is Western Australia’s the West Australian Ballet; the West Australian professional dance and theatre company for Symphony Orchestra and the WA Opera children and young people. Their annual program Company; encapsulates approximately 25,000 young people • program support for Western Australia’s 21 (4 -17 years), including youth in metropolitan and triennially funded arts organisations, these include regional areas of Western Australia. Approximately a range of organisations undertaking diverse 15,000 adults (including teachers, parents, general activities from Spare Parts Puppet Theatre to the public, community participants’ etc.) experience Perth Institute of Contemporary Art; and Buzz Dance Theatre Performances each year. In • annual project funding for a further 18 smaller 2002, the company performed at the 14th ASSITEJ but important organisations such as Perth Jazz Festival in Seoul, Korea.

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SUPPORT FOR SPORTS Lotterywest is the most important source of funds Like the arts, sporting organisations also receive 5% for PIAF; a fact acknowledged by our status as the of net subscriptions from our games. In 2003 $9.4M Festival’s ‘Principal Partner’. With the appointment of was provided to the Sports Lotteries Account for the the new Artistic Director, PIAF has established a new Department of Sport and Recreation to distribute to four-year vision ‘Celebrating the Human Condition’ sporting organisations throughout Western Australia. which has lead to the development of a four-year The Department’s objectives in providing financial in-principle agreement with Lotterywest of up to assistance through the Sports Lotteries Account are $16M for the 2004 – 2007 programs. Lotterywest to: support for each Festival is linked to a range of specific objectives which seek to ensure that • Promote individual health, fitness and well being PIAF is accessible and that it provides increased and develop community pride and spirit through developmental opportunities for local communities sport. and arts organisations. It also recognises the • Maximise the number of participants in sport at all economic and tourism benefits of having an levels. internationally acclaimed Festival in our midst. • Improve the overall quality of sport performance The 2003 Festival met its key artistic and financial and delivery to participants. targets and through increasing sponsorship income • Have better managed sport organisations. it was able to program significantly more events and • Encourage risk management assessments and to include a more expansive regional program. controls to provide a safer sporting environment. Amongst those to benefit from these funds were 94 State sporting associations with grants totalling Funding To PIAF & Film Industry $3.9M. $ M The WA Institute of Sport (WAIS), which supports 4.0 the State’s elite athletes, was again one of the biggest beneficiaries and received $3.05M. Regional WA also benefited with an allocation of 3.5 $0.68M to ensure that clubs and regional sport associations in rural WA have access to funds for sport development, regional games and regional 3.0 sport houses. Our support for sport and recreation in Western Australia extends beyond our statutory funding to 2.5 the Department for Sport and Recreation to our grant funding. These grants have continued to support a range of recreational related activities such as the development of recreation trails, complementary 2.0 grants for the Department of Sport and Recreation funded sports facilities (community use components) and recreational opportunities for people with 1.5 disabilities. Our direct grants also support projects where participation in sport and recreation by particular target groups is a key community 1.0 development strategy. The Surf Lifesaving Association also receives substantial support in recognition of their role 0.5 in providing safety and rescue services on our beaches.

SUPPORT FOR THE PERTH INTERNATIONAL 0.0 1999 2000 2001 2002 2003 ARTS FESTIVAL Since 1992 the University of Western Australia, of PIAF 2.8 3.3 3.0 3.1 3.6 which the Perth International Arts Festival (PIAF) Film Industry 2.0 2.0 3.3 2.6 0.7 is a department, has been a statutory recipient of Lotterywest funding.

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SUPPORT FOR THE WESTERN AUSTRALIAN In 2002/2003 ScreenWest administered a range of FILM INDUSTRY funding schemes designed to develop the creative The Western Australian film industry has been a and professional skills of West Australian film makers recipient of Lotterywest funding since 1992. Our and foster the development of a screen culture as support is provided through various programs well as the production of high quality marketable administered by ScreenWest, the State Film and films and TV projects. Key programs included: Television Development Office. ScreenWest’s • The Producer Enterprise Package, Project mission is to lead the screen industry to a level of Development and Production Funding – for the creative and commercial success to be a source of established filmmaking sector pride and opportunity for all Western Australians. • New Docs, New Screenwriters and Filmex – for In order to plan core business activities and special emerging film makers initiatives from a secure financial basis ScreenWest • Attachment program – local employment negotiated an in-principle agreement with Lotterywest experience during 2003 for up to $4M per annum for the next 3 • Travel assistance – for establishing strategic year period (2003/2004 – 2006/2007). Whilst this contacts in a global market level of funding remains subject to the submission • of annual applications, it enables ScreenWest to Festivals and forums – for community access and maintain its ongoing core funding programs and to critical debate in the local industry plan for the development of new initiatives as well as • Indigenous Production Unit creating a landmark the enhancement of key existing initiatives targeted Framework Agreement at industry advancement. • Film & Television Institutes production activities In 2003 Lotterywest continued to support ScreenWest. • The Australian Close Up documentary ScreenWest has directed funds from Lotterywest into • The ABC/Film Australia/ScreenWest History strategic investment, to trigger production activity and development generate growth in the commercial screen industry. • 50 minute drama production and development with This includes funding to attract market partners and SBS Independent generate critical research and development into film and television production. • Television Scriptwriting with Australian Writers Guild

OUR GRANT APPLICANTS

Strategic Objectives: Customers highly satisfied with service levels

Results: % satisfaction with service related to community funding; 94%

Goal: % satisfaction with service related to community funding; 90%

Our direct grant recipients are important stakeholders (Statement of Strategic Intent, 2003/2005). We of Lotterywest. During the year our grants were actively work with community organisations in the again directed to a broad range of community development of their proposals and we encourage groups, which represent the diversity of the Western them to also collaborate where possible with other Australian community. community stakeholders. In 2002/2003, 1,509 grants totalling $51.3M were Direct Grants - Supporting the Community made to a wide range of community organisations Our most direct support to Western Australia’s throughout the State. We are committed to being community is through the grants we provide to a grant makers of excellence. This involves the wide range of not-for-profit community groups and continual review and consideration of our grants local government authorities. This is a unique role as policy and processes to ensure that they both meet no Australian lottery directly distributes the proceeds community needs and aspirations and also that our from lottery games. management is as effective and accountable as can At the heart of our grant funding is a desire to be. “work in partnership with others who are committed As we recognise that the community sector is to strengthening and building community life” a dynamic and changing environment, we also

Page 22 of 93 Page 23 of 93 About Us About Us Annual Report 2003 recognise the challenge to us to be flexible and environment (environment conservation projects) responsive. This often involves working with and the preservation of our cultural heritage. community groups to guide and shape projects, or Community Sector Development - to develop add value to projects based on our considerable the capacity of the community sector including networks, sector knowledge and individual skills. the quality of management and the skills of those All funding policies and processes are also developed working within it. in consultation with the relevant government supporting a wide range departments to ensure that our funding decisions are Community Cultural - of community festivals and celebrations and small aligned with both government as well as community community cultural groups, as well as the Perth priorities International Arts Festival and ScreenWest. Our primary intent is, wherever possible, to respond positively. This is reflected in the percentage of Direct Grants – Where The Funds Go requests funded over those received – 90.5% in This year, 1509 grants were made to 1139 2002/2003. We work with underdeveloped proposals organisations involved in service delivery and to get them to a stage where they can be funded and community projects. Grants were made to support encourage organisations to work collaboratively and the spectrum of age groups - from children to seniors, form partnerships with others to realise resource to multicultural organisations to celebrate their efficiencies and maximise community benefit. We culture, to large metropolitan projects and to smaller will also support an organisation with a small grant but no less important initiatives in the most remote for a feasibility study or similar to develop their areas, for toys and play equipment. A list of grant proposal further. recipients is provided at the end of this Report. We are committed to our key grant making principles The benefits of our grants are widely felt. The - to be submission based, to encourage diversity, following examples give some illustration of the participation and engagement, to support innovation broad impact and diversity of community activity whilst at the same time recognising the need for supported. accountability and transparency in our processes. Our grants assessment process demonstrates to our This year grants were provided to organisations to: Board and Minister that due diligence and prudence has been applied in the decisions recommended and Support Community Service Delivery that our own internal ‘quality ‘ assurance processes • $2.25M to the City of Rockingham towards a have been followed. major Community Services Building – providing We recognise that proposals that are breaking accommodation for the delivery of the important new ground and developmental in nature can not services of Rockingham Women’s Health & always provide certain guarantees of success. Our Information Association, Care Options and risk taking is mitigated by clear milestones being Coastal Family Health Service, plus a number of identified as targets to guide progress reporting services run by Perth based organisations in the and payment arrangements with the grant recipient, Rockingham region. balanced with what is reasonable to the scale of the • $245,000 for the Hills Community Support Group project and fostering its success. towards a major Information Technology upgrades. This will result in more effective service delivery Again this year our grants supported a wide diversity to the Group’s 1,200 clients who are involved in a in the not for profit sector - community service diverse range of programs. agencies. • $459,000 towards the renovation and fit out of This year we continued to manage our grants across the new Edmund Rice Centre. This organisation five broad areas: coordinates the development of volunteers for over Community Support And Development - 416 community organisations in the Fremantle supporting essential welfare services, community area. buildings and facilities, employment and enterprise • $1.69M was granted to St John Ambulance, initiatives, emergency relief for those in financial representing the second year of a three year crisis, emergency services and medical research. agreement to assist with the replacement of 96 Priority Groups With Special Needs - metropolitan ambulances and to also contribute supporting special needs in the community such towards the cost of upgrading equipment, facilities as those of families and children, young people, and equipment for the network of volunteer seniors, people with disabilities and indigenous services in country regions. community groups. • $108,000 to the St Vincent De Paul Society for equipment for a range of services - youth The Environment - supporting both the natural

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activities, a new supported accommodation facility • $310,000 towards the 2003 Australia Day in Midland, a low cost food centre proposed for Celebrations (Lotto Skyworks). Lotterywest is the Joondalup region - plus office equipment to proud that this event brings together over half support administration activities of this important a million people on the Swan River foreshore to organisation. celebrate our national identity, with thousands of others viewing from vantage points throughout the Increase Our Community’s Facilities metropolitan area and on the delayed television • $20,000 to the Shire of Moora towards the broadcast. construction of a Skate Park facility, which will • $45,000 for the staging of the OZ Concert held in provide Moora with a youth friendly space and the Supreme Gardens on Australia Day. cater to the needs of the Shire’s young people. • $60,000 towards the staging of the 2002 Awesome • $300,000 towards the construction and fit out of Children’s Festival – this is one of the most the community areas of the Tom Price Community acclaimed children’s festivals in the world. and Sports Centre. • $16,000 towards the production of the Carnaval • $50,000 for the second stage of Muna Biddi Trail, Latino Parade and Street Party that showcases, the long distance mountain bike trail between music, dance, costumes and cultural symbols. Collie and Pemberton. • $5,000 for musical instruments and equipment • $50,000 to develop promotional materials and for the Samoan Cultural Group to enable them to maps for 31 walking and riding trails in the Swan, maintain their cultural identity and share Samoan Mundaring and Kalamunda local government culture with the wider community. areas. Protect Our Natural And Built Heritage Support Projects That Will Develop Our • $270,000 to the Denmark Innovation and Communities Environment Centre to establish a Centre for • $95,000 to Gowrie WA towards a 16-month Sustainable Living in Denmark, which will improve community development project - Living Organically education and training in natural resource Around a Metropolis (LOAM), which will develop management and sustainability. three community gardens to be located in Bentley, • $117,000 to Green Skills Inc to undertake projects Kewdale and Winthrop. that will focus on the conservation and promotion • $400,000 to the Shire of Manjimup towards four of biodiversity in the south coast region and the major projects which will support local communities southern metropolitan area of Perth. to counteract the decline in employment and • $22,000 to the Returned and Services League opportunity by enhancing the local economy of Australia WA Branch to conserve the Soldier’s and increasing visitor numbers to the Warren Memorial on Monument Hill in Fremantle. Blackwood region. • $78,145 for professional fees and works to • $205,000 to the Living Stone Foundation for conserve the Sacred Heart Church at Beagle Bay research into the issue of separating parents in the Kimberley, which is of significant social, and the care and custody of their children. The cultural and tourist value for the community. State and Federal Family Courts and community organisations working in this area support this Develop Major Initiatives Of State Wide important project. Importance • $107,000 to CLAN WA (Community Link and • $522,000 towards the development of three of Network) for a social research project that will Albany Whale World’s major projects – The Multi investigate what motivates volunteers in the Media Centre and Interpretive trail, the Panorama community services sector. Whale Watching Tower and the Derrick/Cutting Up deck Barometric Tower. Celebrate Community Life • $675,000 to the Australian Research Alliance For • $137,065 to support the Anzac Day commemorative Children And Youth to ensure strong coordination services including the Dawn Service. and linkages between national research, policy • $15,000 the “ Blues at Bridgetown” Festival street and practice in the area of child development. party - a highlight of the Festival which is enjoyed • $4.0M to The University of Western Australia by over 9,000 people. (on behalf of a consortium of our four public • $25,000 for the 2002 Festival of Fremantle which universities) towards the establishment of a provides the opportunity for the community to medical research biotechnology platform, which participate in celebrating its own rich and diverse will significantly build world class research capacity culture. in our State.

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OUR DIRECT GRANT PROCESSES Strategic Objectives: Effective and efficient grant making Result: % agreement with efficiency of grant making process; 85% Result % agreement with effectiveness of grant making process; 89% Goal Maintain our high standards of efficiency and effectiveness in these areas

Strategic Objective: Optimise returns to the community Result: Record $50.1M approved for the WA community Goal Return $49.7M to the WA community

Ongoing work with the community sector and Lotterywest to be responsive to community priorities government continued through reviews in several and provide support for projects that would not program areas to ensure the Lotterywest’s funding necessarily be funded from elsewhere. However, approach remains contemporary, relevant and in consultation with community groups, a number of reflects community and Government priorities. processes were highlighted for improvement that will We remain committed to excellence in our grant be incorporated into the program’s guidelines and making and work actively to ensure that our grants grant making process. The program was supported policy is informed, flexible and supportive of both by the Board to be an ongoing initiative. government policy and community aspirations. This Social Research Grants policy response is supported by grants business processes to ensure maximum accountability and The successful three-year pilot of this Program customer service. resulted in the Board approving its continuation as an ongoing grants initiative. A review confirmed This intent requires that we have an active policy and its contribution to knowledge and capacity of our business improvement agenda. community. In the initial three years, support has This year’s achievements include: been provided to 14 research projects that have investigated a broad range of significant and POLICY DEVELOPMENT critical social issues including domestic violence, Community Events And Celebrations Grants expectations of fathers in their parenting role, racism, A review of our Community Events and Celebrations sustainable housing for disadvantaged people program has resulted an improved funding process. and sustainability of small to medium community The revised program allows for greater flexibility by organisations. broadening the scope for grants to support initiatives These grants have enabled community groups to that encourage broad community participation. These undertake high quality investigative research in changes will be reflected in new grant information to partnership with research experts. In addition it be finalised and available shortly. Funding rounds has supported the early establishment of a social will be used to encourage applicants undertaking research network in WA involving academics, larger-scale events to allow sufficient planning time researchers and community organisations. to manage their event budgets effectively. Processes to streamline assessment and approval processes COMMUNITY FUNDING BUSINESS IMPROVEMENTS will also be put in place so that we are able to more Information System Enhancements readily respond to smaller initiatives. Enhancements to the information system that supports our grant making activities were Connected Communities Grants implemented and refined during the year. Requests The Connected Families, Connected Communities and approvals for grants relating to future financial Program was reviewed after its first three years years are now tracked and managed through the of operation to gauge the value of the program system, which will support enhanced Direct Grants and consider its continuation. The review Budget management and reporting. Further recommendation was continuation of the grants developed reporting tools have also increased the given their accessibility, flexibility and value in capacity of our staff to extract data without having to supporting developmental community driven rely on an external support write special reports. initiatives. A key change was to rename the program to the Connected Communities Program to reflect Customer Feedback Project its broad community focus. These grants enable This year again our research partners Market

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Equity undertook a customer feedback survey. This Disability Equipment Grants Management information gathered primarily informs our policy Project development and our business management. It In early 2002 we initiated a review of our Equipment also provides us with important data for our Key Grants for Individuals with Disabilities program. Performance Indicators. This research showed that Following consultation with a range of stakeholders a 93% customer satisfaction measure in the 2003 it was resolved to explore alternatives to achieve survey. a more effective granting approach. Following an extensive process of consultation with Disability Web Based Grants Communication Sector organisations, a framework for a community Enhancements to our web based grants based grants program for equipment for people with communication have been ongoing over the last a disability was explored. The Independent Living twelve months. The Grants section of the Lotterywest Centre was identified as the organisation best placed website has been restructured to reflect the new look to lead this approach. This represents a shift from a Lotterywest site. Further enhancements will be grants program managed by Lotterywest to one that undertaken to ensure that we have well represented is managed by a community based organisation, the Lotterywest brand and our brand values through with input from a sector based reference group. this primary communication source. The success of the model will be assisted by a partnership between Lotterywest and Independent Payments by Electronic Funds Transfer (EFT) Living Centre of WA (ILCWA). EFT has been the payment method for all unconditional grants, since July 2002. New business Additional Cultural Heritage Resources processes were developed to support this change. An additional $500,000 was allocated in grants We hope to continue development in this area, which through the Cultural Heritage - Conservation will see all grants eventually paid in this way. Program this year in response to a request from the Heritage Council to supplement funding to NEW INITIATIVES AND PARTNERSHIPS community groups and Local Government Authorities Business Community Partnerships who may be responsible for conservation works on As part of Lotterywest’s ongoing commitment and heritage places. This arrangement, for a three year interest in community/business partnerships, funding period will enable the Council to effectively assess has been provided to the Partnerships WA project. the large number of heritage listing proposals, at the same time allowing community owned places to be Partnerships WA is a consortium of Curtin University conserved. (Schools of Business and Humanities), Philanthropy Australia (a national body) and the Western Tourist Bureaus Australian Council of Social Service (Project In recognition of the community support and volunteer Manager). An Advisory Committee, which includes focus of small country Tourist Bureaus a new grants senior Lotterywest Board Members and staff and opportunity was developed. This was in response to members of the business and community sector, is requests from small tourist bureaus for our support providing strategic guidance. and our recognition that, particularly in rural and Utilising a range of tools (action research, literature remote regions, they are strongly supported by reviews, survey and consultation), to date the project volunteers and can be a hub of community building has: and development activities. • Mapped existing partnership projects and how they operate Employment Directions Network • Provided a local context to current national and Support for office infrastructure was provided to the international research newly established Employment Directions Network via 13 grants to agencies located across Western • Mapped what is working, not working and what Australia. people are seeking to achieve for the community and for their organisation or business The Employment Directions Network will focus • Developed a Western Australian stakeholder on employability skills development services and database will assist people in transition (eg. job-seekers, people returning to the workforce and employees of This is stage one of an initiative designed to foster industries subject to structural change) to maximise a range of different partnership arrangements the opportunities available in the labour market and between business, government and the community from training programs. sector which aim to contribute to a more vibrant and sustainable society in WA.

Page 26 of 93 Page 27 of 93 Our People and Environment Our People and Environment Annual Report 2003

OUR PEOPLE AND ENVIRONMENT

Strategic Objective: Outstanding staff, motivated and engaged in our business

Result: % payroll invested in staff training and development; 1.9%

Goal: % payroll invested in staff training and development; 2.7%

Result: 154 courses attended by staff members

Goal: To continue to train and develop our staff

We take pride in our continuing reputation as an management and Board members, should see the “employer of choice”, evidenced by the very high tangible impacts of their work in the community levels of response to our recruitment advertisements and in the marketplace; and the significant number of unsolicited approaches • a Lotterywest funded Social Club which staged for work experience and employment. a variety of social activities during the year. The A range of staff-related performance indicators are Social Club has also been actively involved in included in our “People and Learning” scorecard and coordinating a number of fund raising activities the development of motivated, engaged and skilled which support community based charities; staff is a strategic objective for Lotterywest. • a corporate “Wellness Program” which includes services to support the physical and personal well OUR WORKING ENVIRONMENT being of our staff; and During 2002/2003 we continued with the • access to an Employee Assistance Program refurbishment of our headquarters at Walters Drive including Grief/Trauma counselling services. in Osborne Park. Stage 1 of the refurbishment was completed in 2001/2002 with the introduction of LOTTERYWEST PEOPLE an open plan environment and new work stations The Lotterywest People Program continues from on the first floor. In March 2003 we completed the the previous year as a developing strategic human continuation of this theme on the eastern side of resource management and major change initiative. the ground floor. This new layout has resulted in an The change in name from People 2003 reflects increased number of highly functional work stations. the new organisation direction and name. The The design of the office environment is an important developments in the Program this financial year build element of our ‘Lotterywest People Program’ and upon the results of the Employee Opinion Survey provides the flexibility to make changes associated and other work undertaken previously. with more multi-disciplinary work teams. In the financial year 2002/2003 the Lotterywest During 2003/2004 we will continue with the People Program commenced implementation refurbishment model into Lotterywest’s Customer of a comprehensive and integrated Managing Enquiries and Helpdesk areas. Accountabilities and Performance Process (the MAP We place a high value on maintaining a family friendly process) designed to align people, performance and workplace and offer flexible working arrangements, organisational outcomes. The MAP Process has as including working from home, part time employment its primary elements: and special arrangements for staff responsible for • Service Level Agreements between directorates, dependent family members. detailing the products and services delivered by All staff have access to a range of opportunities for each organisational unit; personal, as well as professional, development and • Outcome Statements for each team and position, well-being. Amongst the activities offered to our staff derived from the Service Level Agreements. These during the year were: Outcome Statements are intended to replace • opportunities to represent Lotterywest at a wide gradually the task based job descriptions used at range of events and celebrations associated present; with Lotterywest grants and lottery product • Annual Performance Agreements for each launches. We believe that all staff, not just senior employee, showing past and expected performance levels and compiled from all elements of the MAP

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Process, which form the primary relationship program accessible to employees. This Program between the employee and Lotterywest; will then link with the development actions identified • 360 degree assessments against one of three for each employee under the MAP Process and to people and conceptual Capability Frameworks, enhance career and promotional opportunities for according to the organisational level of the all employees. At the same time the Program is employee; intended to improve upon and to sustain a high level of organisational effectiveness into the future. • Assessment against an individually selected Knowledge Capability Framework, detailing the STAFF STATISTICS technical and professional knowledge requirements necessary to achieve the outcomes required from During the year: the position; • Lotterywest operated within it staffing budget; • Development action proposed for each employee • 35 new staff members joined Lotterywest based upon the results of the performance • 20 staff members ended their employment with assessments and the expected outcomes; Lotterywest. • Remuneration, reward and progression decisions The average annual staffing levels expressed as Full based upon the assessment results and the Time Equivalents (FTEs) are as follows: expected outcomes. The implementation of the complete MAP Process will 2002 2003 take some time to achieve and some elements such Approved FTEs 149.5 145.7 as Outcome Statements and remuneration changes Actual FTEs 142.5 147.2 will not be introduced until 2004, allowing time for the assessment and Performance Agreement process to establish familiarity and consistency. The actual number of staff (full and part time) employed by each section of the Commission as at The benefits of the MAP Process are to: 30 June 2003 compared to 30 June 2002 were: • focus employee efforts upon outcomes and 2002 achievements in line with Lotterywest brand 2003 values; Community Funding 24 28 • set standards of performance and outcome Corporate and Financial 46 51 requirements that are clearly articulated and Services understood by all employees; Executive 5 7 • provide individual development plans for each Information Services 45 41 employee; Sales and Marketing 34 35 • enable performance ranking and identification Total 154 162 by objective means of high performers across Lotterywest and; This year a number of long serving staff celebrated • promote consistent and standardised people milestones at Lotterywest. One person celebrated 30 management actions across Lotterywest and years service, five people 20 years, three people 15 increased interaction between employees and line years and five people 10 years service. managers in employee performance areas.

The Lotterywest People Program led to a number of structural changes, introduced during the year. A review of the organisation structure produced changes to the location of the responsibility for corporate planning and project co-ordination, business development initiatives and numerous other work area based restructures. These changes all have the objective of improving service to customers and increasing the focus upon business strategy achievement. Planned future developments within the Lotterywest People Program include the development of a Business Education Program to link the core business knowledge into a curriculum based development

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Total Staff No. of Staff 160 STAFF PROFILESFull Time Part Time 140

120

100

80 Staff Years of Service No. of Staff 60 50

40 45

40 20 Female 35 Male 0 30 1999 2000 2001 2002 2003 25

20

15 Staff Age Summary By Gender

No. of Staff 10 35 5 Female Male 30 0 0-5 6-10 25 11-15 16-20 21-25 26-30 31-35

20

15

10

5

0 16-20 21-30 31-40 41-50 51-60 61-70

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WORKPLACE REFORM OCCUPATIONAL HEALTH SAFETY AND A major focus in the past year has been the WELFARE implementation of the government’s Public Sector During the year Lotterywest experienced a decrease Wages and Parity policy, which seeks to ensure that in the incidence of workers compensation claims. wages and conditions for employees are comparable This can be attributed to a pro-active approach to and equitable across government. As part of injury prevention. this policy the government has struck a General Lotterywest engaged the services of an ergonomist Agreement to cover all public sector employees. to undertake assessments of peoples work Several outcomes were achieved throughout the areas. Improvements were made to existing work course of the year in support of this government environments and new equipment was purchased initiative. An Agency Specific Agreement was struck where necessary. preserving certain agency specific conditions and ensuring the continuation of specific business WORKER’S COMPENSATION AND outcomes, particularly in the gaming support area. REHABILITATION Of 64 people employed on the agencies Workplace Lotterywest received four claims for Worker’s Agreement 39 elected to transfer to the General Compensation, which led to a total of one day in lost Agreement. The remaining people chose to move time. All claims related to muscle strains and soft to a statutory employment contract. A further 20 tissue injury. people transferred to the General Agreement having previously been employed under the agencies INDUSTRIAL RELATIONS Enterprise Bargaining Agreement. During the year no industrial disputes were recorded The focus over the next year will involve consolidating within Lotterywest. the implementation of the government wages parity policy including the implementation of a new General Agreement in 2004.

STAFF DEVELOPMENT Through business planning and annual performance reviews staff continue to identify the areas of enhanced knowledge and experience needed by each workgroup to continuously improve their performance and business processes. Support is also provided to those staff undertaking formal tertiary studies.

STAFFING POLICIES A new format for drafting policies and processes was introduced across Lotterywest to more clearly articulate policy principles and purpose. This new approach will coincide with a review of the existing Human Resources Management manual. New policies were drafted in response to industrial agreement changes, which impacted on Lotterywest personnel.

RECRUITMENT Lotterywest is constantly refining its recruitment processes and striving to identify innovative and contemporary ways of recruiting not only the most qualified and skilled people, but also people who are motivated towards the achievement of Lotterywest goals. Throughout the year a variety of selection tools were trialed to help achieve this end. Further changes are envisaged in the upcoming year consistent with the recommendations of the Lotterywest People initiatives.

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OUR ORGANISATION

Strategic Objective: Minimise the costs of raising funds

Result: Total gaming expenses as a % of sales 6.01%

Goal: Total gaming expenses as a % of sales 6.4%

ORGANISATION STRUCTURE AT 30 JUNE 2003

BOARD OF COMMISSIONERS Kevin Campbell, Chairman Roger Lewis Corin Lamont AUDIT COMMITTEE Anne Conti Patricia Tassell Peter Holland

PUBLIC AFFAIRS CHIEF EXECUTIVE OFFICER BUSINESS DEVELOPMENT Andrew Walton Jan Stewart A/Director, Alec James

COMMUNITY CORPORATE & CORPORATE SALES & FUNDING FINANCIAL PLANNING & MARKETING A/Director, SERVICES INFORMATION A/Director, Jacquie Thomson Director, John Cheyne SERVICES Kerry Pearmain Director, Les Cooper

• Business Services • Business Analysis & Support • Management Team • Sales & Retail • Grants Programs • Despatch & Instants • Systems Development, Development • Policy & Planning • Financial Accounts Support & Infrastructure • Retail Policy & Retail • Financial Operations Team Distribution • Financial Services • Gaming Services Team • Customer Enquiries • Human Resources • Marketing & Product • Security & Administration Development • Treasury & Legal Services • Market Research • Relationship Marketing

EXTERNAL ADVISORY BODIES LOTTERY RETAILERS • Connected Families, Connected Communities Technical Panel • Social Research Technical Panel • Emergency Services Bush Fire Brigade Technical Panel • Gordon Reid Foundation for Conservation • • Gordon Reid Foundation for Youth Advisory Committee Retailers Consultative Panel • Heritage Advisory Committee • Medical Research Technical Panel • Sea Search and Rescue Technical Panel • State Emergency Services Technical Panel

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BOARD OF COMMISSIONERS Mr Lewis is a member of the Australian Society Each member of the Board is appointed by the of Accountants, as a Fellow Certified Practising Minister for Government Enterprises to serve for Accountant (FCPA). a period of up to three years. The members are appointed according to their expertise in areas Corin Lamont relevant to Lotterywest’s activities. Corin Lamont was appointed to the board in January The composition and attendance record of the Board 2001. during 2002/03 was as follows: Since 1978 Ms Lamont has worked to establish the highly regarded Lamont’s winery, restaurant and Board Member Attendance gallery in the Swan Valley. In recent years this family business has expanded to include a restaurant in Kevin Campbell(Chairman) 13 of 14* East Perth and a cellar door facility and restaurant in Yallingup. Roger Lewis 14 of 14* Corin Lamont 14 of 14* Ms Lamont is a foundation member and former Anne Conti 14 of 14* President of the Swan Valley Tourism Council. Patricia Tassell 12 of 14* Anne Conti Peter Holland 12 of 14* Anne Conti was appointed to the Board in May 2001. * Consists of 11 Routine Board Meetings and 3 Special Planning Meetings Ms Conti has many years experience in the media and many will remember her as one of Western Australia’s first female news presenters. More Kevin Campbell - Chairman recently Ms Conti has managed her own media Kevin Campbell has been Chairman of Lotterywest training consultancy. since December 2000. Over the past 35 years, Mr Between 1994 – 1996 Ms Conti was a member of the Campbell has been at the forefront of technology Commission on Government. Ms Conti is currently a through an extensive and diverse career in the councillor in the City of Swan and a Board member of broadcasting industry in Australia. the Constitutional Centre of Western Australia. She He pursues an active and varied community has served as the Honorary State President of Save leadership role, including the chairmanship of the the Children Fund, as a member of the Advisory Institute of Child Health Research, The Order of Board to the State Theatre Company, the West Australia Association (Western Australian branch), Australian Symphony Orchestra and the WA Opera and the Western Australian Academy of Performing Company. Arts. Mr Campbell is also a member of Edith Cowan University Council and is the inaugural patron/ Patricia Tassell mentor for recruits at the Western Australian Police Patricia Tassell was appointed to the Board in Academy. December 2001. He was awarded a Member of the Order of Australia Ms Tassell has a strong professional history in career in 1998 for his contribution to broadcasting and his counselling and personnel placement, having worked community service activities. with Job Link in Whitfords and Joondalup for most of the 1990s. Ms Tassell is currently the Director of The Roger Lewis Pursuits Group in Joondalup, the Chairperson of Roger Lewis was appointed to the Board in March Joondalup Lotteries House Management Committee 2000. and Vice President of the Kingsway Community Bank. Having left Perth in 1969, Mr Lewis worked in Melbourne, Sydney and Kuala Lumpur in accounting, Ms Tassell brings to the Board her significant finance and general management positions before experiences in small business and government returning to Perth in 1978 and joining Woodside liaison, first-hand relations with community groups Energy Ltd. In 22 years with Woodside, Mr Lewis and a broad understanding of social issues. held senior management positions in administration, commercial services, accounting and finance, retiring Peter Holland as Group Financial Controller in April 2000. Peter Holland was appointed to the Board in March Mr Lewis brings to the Board vast experience in 2002. commercial, financial and accounting matters and is Mr Holland has worked in radio and television a member of the Audit Committee. since the early 1960s. After a 32 year career as an

Page 32 of 93 Page 33 of 93 Our Organisation Our Organisation Annual Report 2003 announcer at the ABC in Perth, in 1998 he joined ADVISORY COMMITTEES AND TECHNICAL Channel 9 as News Presenter. PANELS Mr Holland has an expansive interest and We gratefully acknowledge the contributions of the involvement in the arts, the literary world and following people, who have generously provided us community organisations. He is President of Save with expert advice, and have contributed to policy The Children (WA), and has held many senior development and grants allocation in 2003. positions with community organisations, including Deputy Chairman of the Board of the Western Connected Communities Technical Panel Australian Symphony Orchestra, Deputy Chairman Ms Pauline Bagdonavicius of the Council of Celebrate WA, member of the board Professor Jim Ife of the Black Swan Theatre Company, Vice Patron of the Royal WA Institute for the Blind, and Patron of Mr Roger Lewis, Commissioner Canteen. Ms Emma Kate McGuirk In 1995 he was made Citizen of the Year for his Ms Lucy Morris services to the community. Ms Debbie Terelinck Gordon Reid Foundation for Youth RETAILERS CONSULTATIVE PANEL Mr Shawn Boyle Lotterywest gratefully acknowledges the invaluable contributions of the panel members during 2002/ Ms Patricia Hargreaves 2003 and recognise their considerable input into the Mr Douglas Melville rebranding project. Ms Belinda Trowbridge The membership of the Retailers Consultative Panel Ms Sharon Wade at the end of the financial year is shown in the table Ms Aman Pabla below. Ms Deanna Giumelli

Members of Retailer Consultative Panel at 30th Social Research Technical Panel June 2003 Professor Alan Black Mr Paul Murphy Mr Fred Notargiacomo Associate Professor Ralph Straton Newsaction Lottery Centre July 2002 – June 2003 Mr Evan Nicholas Mr Des Mant Professor Roger Vallance Rockingham Central Lottery Centre July 2002 – June 2003 Social Policy Unit Department of Premier and Mr Glenn Major Cabinet Oceans Keys Lottery Centre July 2002 – June 2003 Australian Bureau of Statistics Mr Stan Chait Cultural Heritage Advisory Committee Metro Maddington Lotterywest Centre July 2002 – June 2003 Mrs Karen McGay, Former Commissioner Mrs Marli Wallace Ms Gia Cecchele Mr Greg Wallace Inglewood Amcal Chemist & Civic News July 2002 – June 2003 Ms Janet Payton Ms Diane Boynes Ms Ainslie Evans Meadow Springs Lotterywest Centre July 2002 – June 2003 and News Medical Research Technical Panel Professor Val Alder Ms Jayne Turner Mr Campbell Ansell Kalgoorlie News July 2002 – June 2003 Professor Simon Carroll Membership of the consultative panel was extended Professor Ian Constable (Delegate Professor this year to assist Lotterywest through the rebranding Dao-Eyi Yu) process. Dr Barney Glover Professor Byron Kakulas Professor John Wood (Delegate Dr Vin Martin) Professor Peter Klinken (Delegate Professor Lyn Beazley) Professor Michael Quinlan Professor Alan Robson (Delegate Professor Michael Barber) Page 34 of 93 Page 35 of 93 Our Organisation Our Organisation Annual Report 2003

Professor Fiona Stanley (Delegate Professor AUDIT COMMITTEE AND INTERNAL AUDIT Wayne Thomas) The Audit Committee is central to the Board of Mr Mike Daube Commissioner’s corporate governance role. Sea Search and Rescue Technical Panel The Committee is comprised of an independent Mr Rob Harrison Chartered Accountant, Mr Campbell Ansell (Chairman) and Commissioners Kevin Campbell Ms Jo Harrison-Ward and Roger Lewis. Lotterywest’s Internal Auditor Mr Paul Kimber reports all audit findings to the Audit Committee. Mr Thomas William Reed Other attendees at the Audit Committee meetings Mr Ron Smith are a representative from the Office of the Auditor General, the Chief Executive Officer and the Director Emergency Services Bush Fire Brigade Corporate and Financial Services. Technical Panel Mr Nick Devine Lotterywest’s Internal Auditor Charter and the Internal Audit Committee Charter provide the framework for Ms Jo Harrison-Ward the Internal Audit function. Mr Murray Lang During the year Ernst & Young replaced Mr Cyril Winslade PricewaterhouseCoopers as Lotterywest’s internal Mr E Van Rijuswoud audit service provider. State Emergency Services Technical Panel INSURANCE PREMIUMS PAID TO INDEMNIFY Mr John Capes MEMBERS OF THE BOARD Ms Jo Harrison-Ward An insurance policy has been taken out to indemnify Ms Susan Rooney members of the Board against any liability incurring under 13 or 14 of the Statutory Corporations (Liability of Directors) Act 1996. The amount of the insurance premium paid for in 2002/2003 was $25,633. Board members contributed $256 to this amount.

COMMUNICATING WITH OUR STAKEHOLDERS

Strategic Objectives: Stakeholders and Players support for the Commission’s role

Result: % satisfaction with service related to community funding; 94%

Goal: To maintain high satisfaction levels

Result: % of players base committed to our brand; 55%

Goal: To achieve a loyal player base of 52%

Lotterywest – The Launch Of A New Brand In We have also continued to work to develop a strong Western Australia overarching corporate brand for our organisation, a task which culminated in the launch of our new brand Because we depend on the continuing trust and and new name – Lotterywest. goodwill of a wide range of stakeholders, maintaining open and clearly accountable communications The Lotterywest brand fulfills the need for a is vital for Lotterywest. During the year we have brand which communicates the character of our worked hard to maintain an open dialogue with organisation and our strong association with the our players, those who benefit from our community Western Australian community; one which enables funding, members of our retail distribution network, us to show the true extent of our activities in the community leaders, and government. community, from our product advertising to our grant making. This brand effectively unites all our products

Page 34 of 93 Page 35 of 93 Our Organisation Our Organisation Annual Report 2003 within a clear Lotterywest family, each product with Superdraw, a full half hour Today Tonight show on its own distinct personality but each carrying the Channel 7, dedicated to Lotto. promise of an organisation with a 70 year history In seeking publicity for major winners we continue of supporting the community. The Lotterywest to be careful to respect the right of our winners to brand plays a strong role in our product marketing, complete privacy. endorsing our games in a way which has never been possible in the past. Communicating Our Impact In The Community The new brand was launched in April 2003 through One of the most important roles for the Lotterywest a series of television advertisements and ‘Adshel’ brand is to communicate the impact of our posters featuring organisations and individuals community funding. In the future the “Lotterywest which had benefited from Lotterywest funding. supported” identifier will highlight where our funding Simultaneously the Lotterywest brand appeared has made a difference in the community and on every item of product advertising, in televised associate Lotterywest with a wide range of good draw openers and on all point of sale merchandise causes and community initiatives. We will continue in our retail outlets. Fittingly, the first organisation to have a strong association with events such as the to carry the new “Lotterywest Supported” logo was Perth International Arts Festival, the Australian Day the Foodbank – an organisation established with the Celebrations, Anzac Day and other special events, support of a lottery grant almost ten years ago and but the “Lotterywest supported” badge will also soon which we continue to support. appear on St John Ambulances and in signs on all One of the most complex components of the launch Surf Life Saving Clubs. And of all the projects we of the new branding has been the development of a have supported none is more spectacular than the new retail identity (shopfit) based on the Lotterywest Lotterywest Federation Walkway in Kings Park. brand. This must be an effective, contemporary and The Lotterywest brand gives us an opportunity to distinctive retail identity which meets the functional ensure a far greater consistency in the way that our needs of those who sell our products, lifts our funding is acknowledged as well as a greater ‘reach’ presence in the retail environment and establishes into areas which are currently not well recognised, Lotterywest as the primary brand for our retail such as our support for sporting associations through network. The finalisation of this new retail identity our Sports Lottery funding. In 2002/2003 we again has taken considerably longer than we had hoped sponsored the Active Sport & Recreation Industry because of the challenges inherent in this brief, but Conference to highlight our support for the sport and during the second half of 2003 the new retail look will recreation sector in Western Australia. be progressively implemented in our network as our Lotterywest Retailers refit their premises. A highly effective way of publicising our funding to community organisations has been to invite The Lotterywest brand is much more than a Members of Parliament to present Lotterywest new external look and feel for our business. It grants to community groups in their electorate. As also represents a commitment to certain values, well as generating publicity for both the recipient standards and ways of behaving. We have aligned organisations and ourselves, these presentations give ourselves to four specific values which we intend Parliamentarians an insight into Lotterywest funding will characterise all our activities. These have been and the work of local community organisations. summarised in the adjectives: Rewarding, Inspiring, Trusted and Engaging. These are adjectives we hope others will experience in their contacts with Lotterywest, in everything from our Lotto advertising to the way we manage our grant making process.

Communicating Public Relations (PR) Media liaison continued to be important in gaining ‘below the line’ promotion for our products. Media coverage of Lotto wins in Western Australia ensured that Lotto featured in tv and radio news bulletins and the pages of The West Australian. Media highlights during the year were the December 2002 ‘Megadraw’ and the June 2003 ‘Super Draw’. In both cases we achieved strong media coverage in the lead up to the draws, including, for the June

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STRATEGIC & BUSINESS PLANNING Strategic Objective: Quality and timely decisions

Result Monthly Board meetings, General Corporate Project meeting, Executive Management Team meetings, Executive Team meetings & Senior Manager Planning Sessions

Goal Quality decisions through continual input from the Board and key staff

The 2000-2003 Strategic Plan was reviewed in 2002/ • Considerable work was completed in various 2003 to ensure it represents the focus and strategies systems to reflect the new Lotterywest name and covering the next 2 years as well as reflecting corporate brand. This included a new web site the changed Lotterywest corporate brand and its presentation and URL changes, alterations to the implications. The new 2003-2005 Lotterywest Intranet and all other internal systems, changes to Strategic Plan produced in April 2003 includes the Internet e-mail addresses, changes to the Gaming new brand promise, the core attributes and retains system and changes to the many internal forms. the balanced scorecard approach to represent future • Work continued on the Records and Information outcomes and strategies. Management project to meet the requirements of Additional to this a detailed review of the strategic the State Records Act 2000 and future Lotterywest projects and priorities was undertaken and approved information needs. This includes the development by the Board for the following 1 to 2 years. During of the Records Keeping plan and the completion the 2003/2004 financial year a further review of of many key activities in its development, such as the strategic projects will be conducted and a the Vital Records plan, the Functional Thesaurus, consolidated Corporate Plan will be developed. the Retention and Disposal Plan and strategies for future developments in this area. INFORMATION TECHNOLOGY PLANNING • Extensive research was completed to select a AND DEVELOPMENT new web development environment to provide During the year work continued on the implementation the software development direction and standards of the approved Strategic Information & IT Plan for the following 5+ years. A Borland J2EE February 2002 that covers a period of 5 to 8 environment was chosen and purchased. It will years. Apart from the core capital projects already be installed in the following financial year, the mentioned in this report the other key project work standard environment for the future will be carefully covered the following: developed and new system developments will commence. • The Gaming and Information Management systems • were developed further to include the changes to A new Web content management system was Saturday Lotto to facilitate the price rise that was purchased and installed. This is a small system implemented in November 2002. that is expected to be in operation for the next few years as a learning and development tool before • The Gaming and Information Management systems major investments are made in this area in the were upgraded to include changes to Retailer fees, future. charges and commissions that came into effect in November 2002 and January 2003. The Gaming Gaming and Information System Operations Information Management system (OASIS) was In addition to the project work undertaken during the also further developed to provided facilities and year we maintained a high level of service through support for the introduction of new Retailer Licence existing systems. Agreements. • Considerable development work was completed Specific performance measures were as follows: to develop a comprehensive set of new reports for • Gaming central computer systems uptime was the Retail environment to assist in the operation maintained at 99.937% and the main external and management of Retail sales. network was maintained at 99.895% (benchmark • Enhancements were completed to internal for both is 99.9%). information systems supporting the Community • Gaming system ISYS lottery terminals were Funding functions (Monty) and the Customer maintained at a Mean Time Between Failure Service activities (LC_Assist). (MTBF) of 227,339 (benchmark 160,000)

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• Gaming system ISYS lottery terminals preventive work-station design, access and functionality. The maintenance was completed Statewide during the cost of Stage 2 of the project was budgeted to be year with ongoing visits by Technicians throughout $370,000 (inclusive of $35,000 for furniture and Western Australia. fittings), the actual cost was $380,588. The project • Management systems and key computer server overrun was a consequence of purchasing a new uptime ranged from 99.9% to 99.99% (benchmark compactus and storage units which were not part 99.9%). of the original project scope. The project was completed in April 2003. • The local area network was available 99.836% (benchmark 99.9%) during the year. • Upgrading of existing Uniterruptable Power Supplies (UPS) – This project involved the • Total calls to Helpdesk to support the Retail decommissioning of the existing UPS at network were 12,364 during the year, for internal Lotterywest’s head office and backup site, and systems there were 3,793 calls; and the commissioning of new equipment at both • Total field service calls by technicians, additional locations. The cost of the systems were budgeted to preventive maintenance visits to Retailers, were to be $350,000 the actual cost was $160,225. 823. The savings were due to a reduction of scope at the back up site, the better than expected pricing Gaming And Management Information System on the UPS base units and the acceptance of an Controls alternative bid for head office unit. The backup The Department of Racing Gaming & Liquor has UPS was commissioned in December 2002 and continued to provide draw supervision services for the head office UPS was commissioned in April our Lotto and Cash 3 games. This is done to ensure 2003. the integrity of Lotterywest’s lottery games. • Upgrade of Desktop PCs – This project involved During the year Ernst & Young replaced the sourcing and commissioning of 200 desktop PricewaterhouseCoopers as Lotterywest’s internal computers for general use by Lotterywest staff. audit services provider for the audit of Gaming The cost of the project was budgeted to be system and Management Information Systems $840,000 the actual cost was $473,000. The controls, and to provide assurance of the integrity savings were due to a significant change in the and security of these environments. scope of works, a reduction in the base price of the PCs and the deferral of the purchase of the final DISASTER RECOVERY PLANNING 20 until 2003/2004. The bulk of the project was In the Information Services (IS) area work continued completed between January and March 2003. to safeguard this core area of the organisation. The IS Risk Management Plan was redeveloped Other Capital Projects and reviewed by audit, the disaster recovery for During the year considerable work was undertaken the management information systems environment to continually develop Lotterywest’s information and was completed and core components tested in a IT environment. This work included the installing live operational situation, and the disaster recovery of thirty six 18 Gb disk drive, undertaking systems environment for Gaming system operations was software upgrades, installing new desk top publishing tested in a live situation. Additional to this significant software, changing the previous Internet service work was completed to ensure all procedures and provider to the Government Servicenet system and processes continued to be documented to a high level commissioning new firewall systems. through the upgrading of the quality accreditation to the ISO9001:2000 standard.

OUR INVESTMENT IN THE FUTURE Major Capital Projects Completed During the year the following significant projects were completed: • Ground floor accommodation remodelling, Stage 2 - Stage 2 of the ground floor accommodation project involved redesigning the office layout on the eastern side of the ground floor of Lotterywest’s Walters Drive headquarter building. The purpose of the redesign was to optimise the use of the building asset while providing enhanced

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Page 38 of 93 Page 39 of 93 Compliance Compliance Annual Report 2003

COMPLIANCE WITH GOVERNMENT its Code of Conduct. The review will build on the REPORTING POLICIES foundation of Lotterywest brand attributes and work done across the organisation to enrich the meaning The sections below provide information on specific and application of these attributes for all employees. government initiated Customer and Accountability The revised code of conduct will focus on linking programs run by Lotterywest. attitudes and behaviours to brand attributes, which underpin the Corporate Brand initiatives. REPORTS ON CUSTOMER OUTCOMES State Government Plan for Young People 2000- People with a Disability 2003 Lotterywest continues to support its Disability Lotterywest continues to monitor opportunities for Services Plan, which promotes equality of youth traineeships and is offering two part time community participation and quality of life of people cadetships as part of its commitment to youth with disabilities. As part of this commitment recent employment. refurbishments have ensured that workstations have been designed to comply with disability requirements. REPORTS ON ACCOUNTABILITY AND Lotterywest will also be erecting a lower section of COMPLIANCE ISSUES the public counter as part of planned refurbishment of the Customer Enquiries area. Freedom of Information It is Lotterywest’s policy to provide information Equal Employment Opportunity wherever possible. During 2002/2003 six Freedom Lotterywest continues to apply its Equal Employment of Information applications were received. Of these, Opportunity (EEO) principles through the EEO three incurred an application fee and two were third Plan complemented by the Human Resources party referrals from other agencies. Lotterywest Management Manual and the Industrial Agreements. produces an annual Information Statement which is There was no formal staff grievances recorded for available to the public. the year. Pricing Policies on Outputs Equity and Diversity Plan Lotterywest has discretion to adjust the prices of its During the year the Office of Equal Employment products, subject to Ministerial approval. For most Opportunity reviewed Lotterywest’s performance products, any price changes are subject also to objectives and noted that Management Tiers for agreement among the various Bloc partners. women were good as well as the current workforce percentage for people with disabilities and people Code of Conduct and Code of Ethics from culturally diverse backgrounds. Lotterywest’s Code of Conduct has been widely As part of its commitment to enhancing the workforce publicised internally through a variety of means percentage of Indigenous Australians and youth including the Lotterywest Intranet. Special emphasis outcomes, Lotterywest is offering cadetships to two is placed on the Code of Conduct during induction of young Indigenous Australians through the National new staff. Indigenous Cadetship Project. Recruitment has Our Code is reviewed and updated regularly. At the begun to engage two participants who will work part time of preparing this report, Lotterywest’s Code of time with Lotterywest whilst undertaking university Conduct is being reviewed to ensure consistency studies in a related field. with the Public Sector Standards Commission’s Code of Ethics. Compliance with Human Resource Management Standards Contracts with Senior Officers Lotterywest continues to build into its Human At the date of reporting, other than normal contracts Resource Management business practices of employment of service, no Board Members or processes which are consistent with the standards. senior officers, or firms of which Members or senior External auditors are also engaged on an annual officers are members, or entities in which Members basis to monitor the extent of compliance with the or senior officers have substantial interests, had standards. There were no breaches of standard any interests in existing or proposed contracts claims lodged with Lotterywest during the year. Lotterywest of and Members or senior officers. Compliance with Code of Ethics and Code of Waste Paper Recycling Conduct In complying with Cabinet Minute 2.7 of October 1991 Lotterywest will shortly commence a review of on Government Waste Paper recycling, “Proposal to

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Improve Recovery Rate”, Lotterywest has in place Expenditure with Advertising Agencies $ procedures that ensure all high grade waste paper is Marketforce 3,599,428 placed in special containers for recycling. Expenditure with Market Research Agencies Energy Smart Government Program Market Equity 337,366 In accordance with the Energy Smart Government Expenditure with Polling Agencies policy Lotterywest has committed to achieve a 12% n/a Nil reduction in non-transport related energy use by Expenditure with Direct Mail Agencies 2006/07 with a 5% reduction targeted for 2002/03. Post Data 22,928 Energy Smart Baseline 2002/ Var Leigh-Mardon 59,275 Government program Data 2003 % Expenditure with Media Advertising Agencies Actuals Media Decisions 6,353,694 Energy Consumption (MJ) 4,864 4,838 0.6 TOTAL EXPENDITURE 10,372,691 Energy Cost ($) 145,206 147,775 1.76 Greenhouse Gas Emissions 1,236 1,224 0.9 Statement of Compliance with Public Sector (tonnes of CO ) 2 Management Act s.31(1) Performance indicators In the administration of Lotterywest I have complied with the Office buildings MJ/sqm 1,283 1,203 6.2 Other buildings MJ/sqm 1,079 1,375 2.7 Public Sector Standards in Human Resource Management, the Office buildings MJ/FTE 28,416 25,994 (8.5) Western Australian Public Sector Code of Ethics and our Code Other buildings MJ/FTE 62,499 67,271 7.6 of Conduct as follows: During the year an Energy Executive was • The Lotterywest’s Human Resources Management Manual appointed. has integrated the Public Sector Standards in relevant sections; It should be noted that Lotterywest commenced • The Human Resources Management Manual is accessible initiatives to save energy costs prior to the to all staff via the intranet and limited numbers of hard copies introduction of the Energy Smart Program and this are also available; resulted in a cost reduction of 13% between 2000/ • Each activity involving reference to a Standard is 2001 and 2001/2002. documented in the Human Resources Management Manual During 2001/2002, significant funds were spent while Lotterywest’s Code of Conduct, which is also included on seeking out and rectifying power problems that in the manual, is derived from the Public Sector Standard’s were causing frequent breakdowns, mainly in the Commission’s Code of Ethics; air conditioning plant and its associated electronic • A systems review of Lotterywest was conducted by the Public controls. During this time, all equipment additions, Sector Standards Commission, Director of Equal Opportunity replacements and modifications undertaken were in Public Employment, during the financial year. There were designed, to reduce power consumption and this no recommendations for action, rather an acknowledgment resulted in further improvement during 2002/2003. that Lotterywest proposed new recruitment and selection In 2003/2004, a staff education program will be process will enhance the relevant standard and better meet implemented, coupled with a review of other means Lotterywest’s business needs; to reduce energy consumption. • The process involved in the application of all Standards is formally recorded and assessed by the Manager, Human Compliance with Electoral Act 1907 Resources and Facilities; • The Code of Conduct was adopted in 1997 through an In compliance with section 175ZE of the Electoral extensive staff consultative process and is reviewed regularly; Act 1907 Lotterywest is required to report on • The Manager, Human Resources and Facilities monitors expenditure incurred during 2001/02 in relation to compliance with the Code and staff may report misconduct advertising, market research, polling, direct mail and through the chain of command or direct to the Manager, media advertising agencies. The required details, in Human Resources and Facilities; and accordance with Treasurer’s Instruction 903, are as • During the year Lotterywest has not received any Breach of follows: Standards application.

JAN STEWART CHIEF EXECUTIVE OFFICER 28TH AUGUST 2003

Page 40 of 93 Page 41 of 93 Strategic Plan Strategic Plan Annual Report 2003

STRATEGIC PLAN 2000-2003, PERFORMANCE MEASURES The following table summarises the Lotterywest’s achievement against its strategic objectives identified in the 2000-2003 Strategic Plan.

COMMUNITY AND CUSTOMER To achieve our strategic intent, we meet the needs of the community and our customers

Performance Desired Outcomes 2003 2003 Notes Indicators Actual Target Grant Meeting statutory and 29.3% 29.7% 26.6% (statutory requirement) was Payments as a direct community funding exceeded due to improved sales and % of total sales requirements reduced expenses. % of players Loyal player base 55.0% 52.0% % of players committed to any Lotteries base Game. Players are defined as anyone committed to who bought our products in the last six our brand months.

% of adult Loyal player base 85% 80% Focussed marketing activity, increased population player awareness of our products and of buying our our Community role have contributed to products this pleasing result. % satisfaction Customers highly satisfied 93% 90% Improvement is due to change processes with service with service levels introduced in 2001. Results from relating to Benchmark Study. community funding Average score Customers highly satisfied 74% 84% Introduction of a new Service provider has of Retailers with service levels resulted in a more severe grading, hence against service the comparatively low score. standards

BUSINESS PROCESSES & INNOVATION To satisfy our stakeholders and customers, we excel in our business processes

Performance Desired Outcomes 2003 2003 Notes Indicators Actual Target Total Operating Innovative and 6.64% 7.10% A combination of higher than budgeted Expenses as % responsive business sales and reduced expenses has of sales development delivered this pleasing result. Marketing and Optimal marketing and 3.30% 3.17% A combination of higher than budgeted distribution costs distribution of products sales and reduced expenses has as a % of sales and services delivered this pleasing result. Management Secure continuous 99.90% 99.90% Target achieved Information and quality information Systems Uptime technology service delivery. % agreement 85.00% 90.00% The result is within normal measurement with efficiency variations. Results have been obtained of grant making Effective and efficient from the Community Funding, Customer process grant-making Service Benchmark Study. % agreement 89.00% 90.00% with effectiveness of grant making process

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PEOPLE AND LEARNING To achieve our strategic intent, we optimise our ability to change and improve

Performance Desired Outcomes 2003 2003 Notes Indicators Actual Target Staff turnover Outstanding staff 10.0% <10% motivated and engaged with our business. % of payroll Outstanding staff 1.92% 2.66% Training is lower than anticipated due to (salaries plus on- motivated and engaged project work undertaken during the year. costs) invested in with our business. Note, the figure excludes value of staff staff training and time spent on training and development development activities.

FINANCIAL PERFORMANCE To satisfy our stakeholders, we optimise our financial performance Performance Desired Outcomes 2003 2003 Notes Indicators Actual Target Total sales as Optimise product sales 1.58% 1.51% Improvement as a result of higher than % of Household budgeted sales Disposable Income Total gaming Minimise costs of raising 6.01% 6.40% The improvement was due to containment expenses as a % funds of expenses while sales increased over of sales budget.

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OUTPUT SUMMARY TABLES In accordance with Treasurer’s Instruction 904 Lotterywest discloses in its Annual Report the relationship between its outputs, being the goods or services produced, and its outcomes, being the impact or consequence of the outputs for the community of Western Australia. The disclosure includes output measures of quantity, quality, timeliness and cost, a comparison of actual results against target levels for the financial year and explanations for significant variations between actual and target measures.

OUTCOME NUMBER 1 – LOTTERY PRODUCTS

Outcome: Lotterywest is required to provide the public of Western Australia with a range of lottery products (consistent with the Government’s gaming policy) which will satisfy their need for this form of entertainment. Output: The provision of lottery products Output Description: Market, distribute and conduct State lotteries in accordance with the Lotteries Commission Act 1990 (as amended).

LOTTERY PRODUCTS

2003 2003 Explanation of Significant Variation between Actual and Actual Target Target

Quantity Total Product Sales $490.85M $467.50M $23.35M above budget due to record performance in the mid year Super Draw, generating sales in excess of $14M. Secondly the increase was due to a price increase in our flag ship product Saturday Lotto.

Quality Access to products Adult population per terminal (country ) 2,334 2,354 Result is within normal measurement tolerances. Adult population per terminal (metro) 2,643 2,675 Result is within normal measurement tolerances. Access to product information (average hours available per week) Office Hours 85 hrs 85 hrs Target achieved

Telephone Results 168 hrs 168 hrs Target achieved

Internet 168 hrs 168 hrs Target achieved

Gaming System availability 99.94% 99.90% Result is within normal measurement tolerances.

Timeliness Trading hours per week 45 hrs 45 hrs Target achieved

Cost Total Cost of gaming operations $0.75 $0.75 Target achieved (including prize liability) per $ of total product sales

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OUTCOME NUMBER 2 – COMMUNITY FUNDING Outcome: Lotterywest is required to provide funding to specific Government departments and to a wide range of community groups to enable them to achieve their outcomes for the Government and the community. Output: Community funding allocations. Output Description: Provide funding to specific Treasury accounts (as defined in the Act) and promote, identify, assess and distribute funds to eligible organisations for approved purposes in accordance with the Act.

COMMUNITY FUNDING

2003 2003 Explanation of Significant Variation between Achievement Actual Target and Target

Quantity Total Funding - Statutory $93.80 M $89.30M Allocation improved due to increased sales. - Direct Grants $51.20 M $50.11M Allocation improved due to increased sales.

Quality Access to Information (average hours available per week)

- Office Hours 45 hrs 45 hrs Target achieved.

- Internet 168 hrs 168 hrs Target achieved.

Timeliness % of general direct grant 83.0% 80.0% Increase in this measure is as a result of continued applications* assessed within 3 business improvements in funding management. month of acceptance

Cost Grants administration costs as % 6.15% 6.70% Decrease due to savings in grant administration expenses of Total $ of grants assessed and increase in grants approved.

* general direct grants are those which are not included in any grant funding rounds

Page 44 of 93 Page 45 of 93 Lotteries Commission Performance Indicators Lotteries Commission Performance Indicators Annual Report 2003

CERTIFICATION OF PERFORMANCE INDICATORS We hereby certify that the performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the performance of the Lotteries Commission and fairly represent the performance of the Lotteries Commission for the financial year ended 30 June 2003.

KEVIN V CAMPBELL AM ROGER LEWIS Chairman Commissioner Accountable Authority Accountable Authority 28th August 2003 28th August 2003

Page 46 of 93 Page 47 of 93 Lotteries Commission Performance Indicators Lotteries Commission Performance Indicators Annual Report 2003

AUDITOR GENERAL’S OPINION ON PERFORMANCE INDICATORS

Page 46 of 93 Page 47 of 93 Lotteries Commission Performance Indicators Lotteries Commission Performance Indicators Annual Report 2003

KEY PERFORMANCE INDICATORS (AUDITED) Key Performance Indicators are provided for both outcomes of Lotterywest as follows: • To provide the public of Western Australia with a range of lottery products (consistent with the Government’s gaming policy) in order to meet their need for this form of entertainment; and • To provide funding to bodies prescribed in the Lotteries Commission Act 1990 (as amended) to enable them to achieve their outcomes for the benefit of the Western Australian community. In accordance with Treasurer’s Instruction 904, these indicators have been selected as fulfilling the required qualitative characteristics; relevance, appropriateness, verifiability, freedom from bias and quantifiability. The indicators are supported by explanatory notes where necessary. Two distinct types of indicators are identified: • Effectiveness indicators - measure the extent to which outcomes are achieved; and • Efficiency indicators - compare resources input against resulting outputs. The inputs to Lotterywest performance indicators are generally resources, however in measuring the performance of the community funding function the inputs include lottery product revenues, which is an output from selling lotteries products. The resources used by Lotterywest are the expenses incurred in raising revenue (selling lotteries products) and distributing funds (the community funding function). The outputs of Lotterywest are the provision of lotteries products (measured as sales revenues) and the provision of funds to the community of Western Australia. These are also shown in the Output Summary Tables of this Report. Lotterywest uses population figures provided by the Australian Bureau of Statistics (ABS) in calculating its performance indicators. The total population of Western Australia is used for Community Funding Indicators as all Western Australians obtain benefit from the community funding grants programs. Conversely, only the adult population figures are used for Lottery Product Indicators as only adults are permitted to purchase lotteries products.

Page 48 of 93 Page 49 of 93 Lotteries Commission Performance Indicators Lotteries Commission Performance Indicators Annual Report 2003

Community Funding Indicators Indicator Description Notes 2003 2002 2001 2000 1999

Effectiveness Total approved funding per capita a, b $73.97 $70.11 $71.39 $68.97 $69.07

Efficiency Total approved funding as % of Sales a, c 29.55% 29.81% 29.88% 29.07% 29.54% Total costs per $ of approved funding a, d $2.42 $2.43 $2.44 $2.51 $2.47

Lottery Product Indicators Indicator Description Notes 2003 2002 2001 2000 1999

Effectiveness Total sales per adult a,e $321.03 $302.82 $308.84 $307.09 $303.71 Trading Profit as a % of sales a,f 35.25% 34.23% 33.83% 33.38% 33.56%

Efficiency Gaming Expenses as % of Sales a, g 6.01% 6.10% 5.98% 5.69% 5.91% (a) Base Data

2003 2002 2001 2000 1999 Total Population (M) 1.9608 1.9334 1.9056 1.8722 1.8432 Adult Population (M) 1.5290 1.5015 1.4740 1.4480 1.4188

Sales ($M) 490.85 454.69 455.24 444.65 430.91 Costs ($M) 350.41 329.79 331.38 324.60 314.95 Trading Profit ($M) 173.06 155.69 154.03 148.43 144.63 Gaming Expenses ($M) 29.52 27.75 27.21 25.32 25.48 Note: Population figures are “mean” population supplied by Australian Bureau of Statistics

(b) This measure relates to Lotterywest’s Statement of Intent “ to provide funds and support to the community of Western Australia…“. The sales result for 2003, of $490.85M, $36.16M above last year, provided additional funds of over $9M to the community. (c) This measure shows the efficiency of Lotterywest in converting its sales revenues to community funding. Although the Act specifies that approximately 27.5% of sales is required to go to community funding Lotterywest sets itself a target of 30%. While record levels of funds were approved for distribution to the community during the year (as indicated by our effectiveness measure), the funds available for distribution grew (marginally) faster than Lotterywest’s capacity to process and obtain approval for distribution, in accordance with the Act. As a consequence Lotterywest was not able to achieve its self-imposed target for this measure. (d) This measure shows the extent to which the Lotterywest has maximised community funding allocations and contained growth in expenditure. “Total Costs” include prizes, Retailers’ commissions, Gaming expenses and grants administration expenses. Despite the write off of expenditures associated with the development and launch of the Lotterywest

Page 48 of 93 Page 49 of 93 Lotteries Commission Performance Indicators Lotteries Commission Annual Accounts Annual Report 2003

corporate and product identities, this performance measure has continued to improve as a consequence of enhanced processing efficiencies across all areas of operations, and cost containment. (e) This measure shows the effectiveness of Lotterywest in promoting and communicating its product message to the adult population and the subsequent attractiveness of the Lotterywest’s products to the players. Note adult population refers to the number of Western Australians of 16 years and over. This age group is permitted, by the Act, to purchase Lotterywest’s products The excellent sales performance was a consequence of a planned change in pricing for Saturday Lotto, improved jackpot and bonus draw marketing initiatives, improved Scratch’N’Win marketing and product selection and improved support for Retailers. (f) This measure shows the effectiveness of Lotterywest in generating surpluses from sales revenues. Trading Profit is total Sales Revenue from lottery products less Prizes and Retailers’ commissions paid. The surpluses are then available for distribution to the community subsequent to the deduction of the Lotterywest’s operating costs and making appropriate provisions for future capital expenditures. The planned pricing (Saturday Lotto price increase of 22.5% inclusive of Retailers commissions) and marketing initiatives undertaken during the year have had a significant positive impact on this performance measure when compared to previous years. The improvement in this effectiveness measure was achieved while simultaneously increasing the Retailers’ commissions from 7.5% to 9% (on Saturday Lotto). (g) This indicator shows the rate at which Lotterywest consumes resources in generating sales revenues. Gaming expenses are the total operating expenses excluding grants administration expenses. Although the gaming expenditures for the year were in excess of previous years, due to the write off of the development costs of the new Lotterywest brands, improved product sales from pricing, marketing and distribution initiatives impacted positively on this indicator. In addition to the strong sales gains, process improvements and cost containment on operational tasks were achieved resulting in a significant positive change in this efficiency measure when compared to the previous year.

Page 50 of 93 Page 51 of 93 Lotteries Commission Performance Indicators Lotteries Commission Annual Accounts Annual Report 2003

ANNUAL ACCOUNTS

Certification of Financial Statements for the year ended 30 June 2003

The accompanying financial statements of the Lotteries Commission have been prepared in compliance with the provisions of the Financial Administration and Audit Act 1985 from proper accounts and records to present fairly the financial transactions for the financial year ending 30 June 2003 and the financial position as at 30 June 2003.

At the date of signing, we are not aware of any circumstances, which would render any particulars included in the financial statements misleading or inaccurate.

JOHN CHEYNE Principal Accounting Officer 28th August 2003

KEVIN V CAMPBELL AM ROGER LEWIS Chairman Commissioner Accountable Authority Accountable Authority 28th August 2003 28th August 2003

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AUDITOR GENERAL’S OPINION ON FINANCIAL STATEMENTS

Page 52 of 93 Page 53 of 93 Lotteries Commission Annual Accounts Lotteries Commission Annual Accounts Annual Report 2003

STATEMENT OF FINANCIAL PERFORMANCE For the year ended 30 June 2003 Notes 2003 2002

$000s $000s Revenue from ordinary activities Trading Profit 2 173,059 155,686 Interest 7,390 5,958

Forfeited Prizes 3 4,693 4,526

Retailer Fees 4 2,018 1,535 Player Registration Service 5 336 443

Proceeds From Disposal Of Non-Current Assets 6 0 0

Other Revenue From Ordinary Activities 7 120 323 Total Revenue From Ordinary Activities 187,616 168,471

Expenses From Ordinary Activities

Building & Facility Management 9 961 1,008

Corporate Management 10 5,253 4,241

Gaming System Management 11 5,599 5,147

Non-Gaming System Management 12 2,134 2,421

Product Management 13 11,996 11,429 Retail Network Management 14 3,581 3,483

Total Expenses before Funding Management and 29,524 27,729 Community Funding Funding Management Expenses 16 3,080 3,034

Total Expenses after Funding Management & 32,604 30,763 before Community Funding

Community Funding 17 143,925 134,722

Total Expenses from Ordinary Activities 176,529 165,485

Net Profit 11,087 2,986

Total Revenues, expenses and valuation adjustments recognised directly In Equity 25 0 0 TOTAL CHANGES IN EQUITY Other than those resulting from transactions with 11,087 2,986 owners as owners

The Statement of Financial Performance should be read in conjunction with the accompanying notes.

Page 52 of 93 Page 53 of 93 Lotteries Commission Annual Accounts Lotteries Commission Annual Accounts Annual Report 2003

STATEMENT OF FINANCIAL POSITION As at 30 June 2003

Notes 2003 2002 $000s $000s Current Assets

Cash Assets 27 6,059 7,271 Inventories 19 839 856 Receivables 20 12,305 16,460 Other Financial Assets 18 89,623 70,743 Total Current Assets 108,826 95,330

Non-Current Assets

Other Financial Assets 18 26,992 22,959 Property, Plant and Equipment 22 21,936 23,358 Work in Progress 21 1,200 5,363 Total Non-current Assets 50,128 51,680

Total Assets 158,954 147,010

Current Liabilities

Payables Prizes 23 16,221 21,312 Community Funding 23 55,454 49,550 Other Payables 23 2,572 4,169 Sales In 2,153 1,584 Advance Provisions 24 12,901 11,752 Total Current Liabilities 89,301 88,367

Non-Current Liabilities

Provisions 24 1,314 1,391 Total Liabilities 90,615 89,758

Net Assets 68,339 57,252

Equity 25 Revaluation Reserve 598 598 Retained Profits 67,741 56,654

Total Equity 68,339 57,252

The Statement of Financial Position should be read in conjunction with the accompanying notes.

Page 54 of 93 Page 55 of 93 Lotteries Commission Annual Accounts Lotteries Commission Annual Accounts Annual Report 2003

STATEMENT OF CASH FLOWS For the year ended 30 June 2003 Notes 2003 2002 $000s $000s Cash Flows from Operating Activities

Receipts Sale of Goods & Services 497,960 456,718 Interest Received 7,379 5,579 GST Receipts on Sales 252 238 GST Receipts from Taxation Authority 9,348 9,671 Payments Prizes and Retailers’ Commissions (318,189) (291,875) Suppliers and Employees (24,910) (35,697) Community Funding (138,021) (131,099) GST Payments on Purchases (9,897) (7,785) Net Cash provided by Operating Activities 23,922 5,750

Cash Flows from Investing Activities Purchase of Non-Current Physical Assets (2,221) (1,244)

Purchase of Long-Term Investments (4,033) (3,997)

Net Cash provided by Investing Activities (6,254) (5,241)

Net Increase in Cash Held 17,668 509

Cash Assets at the beginning of the financial 78,014 77,505 year

Cash Assets at the end of the financial year 27 95,682 78,014

The Statement of Cash Flows should be read in conjunction with the accompanying notes.

Page 54 of 93 Page 55 of 93 Lotteries Commission Annual Accounts Lotteries Commission Annual Accounts Annual Report 2003

NOTES TO THE FINANCIAL STATEMENTS

1. SIGNIFICANT ACCOUNTING POLICIES The following accounting policies have been adopted in the preparation of the financial statements. Unless otherwise stated these policies are consistent with those adopted in the previous year. General Statement The financial statements constitute a general purpose financial report which has been preparedin accordance with Australian Accounting Standards, Statement of Accounting Concepts and other authorised pronouncements of the Australian Accounting Standards Board, and Urgent Issues Group (UIG) Consensus views as applied by the State Treasurer’s Instructions. Several of these are modified by the Treasurer’s Instructions to vary application, disclosure, format and wording. The Financial Administration and Audit Act and the Treasurer’s Instructions are legislative provisions governing the preparation of financial statements and take precedence over Australian Accounting Standards, Statement of Accounting concepts and other authorised pronouncements of the Australian Accounting Standards Board and UIG Consensus views. The modifications are intended to fulfil the requirements of general application to the public sector together with the need for greater disclosure and also to satisfy accountability requirements. If any such modification has a material or significant financial effect upon the reported results, details of that modification and, where practicable, the resulting financial effect, are disclosed in individual notes to these financial statements. Basis of Accounting The statements have been prepared on the accrual basis of accounting using the historical cost convention, with the exception of certain non-current assets which, subsequent to initial recognition, have been measured on the fair value basis in accordance with the option under AASB 1041(5.1) (see notes 1(e) and 22).

(a) Revenue recognition Sales revenue representing gross sales of all games of Lotto, Cash 3, Soccer Pools and Super 66, is recorded as at the date of the respective draw. Sales of instant lottery tickets are recorded when books of tickets are issued to Retailers.

(b) Acquisitions of Assets The cost method of accounting is used for all acquisitions of assets. Cost is measured as the fair value of the assets given up or liabilities undertaken at the date of acquisition plus incidental costs directly attributable to the acquisitions. Assets acquired at no cost or for nominal consideration are initially recognised at their fair value at the date of acquisition.

(c) Depreciation of non-current assets All non-current assets having a limited useful life are systematically depreciated over their useful lives in a manner which reflects the consumption of their future economic benefits. Depreciation is provided on the straight-line basis, using rates which are reviewed annually. Useful lives for each class of depreciable asset are: Buildings (excluding Land) 50 years Equipment and Fittings 5 to 10 years Computer Equipment 5 to 8 years Works of art owned by Lotterywest are anticipated to have very long and indeterminate useful lives. Their service potential has not, in any material sense, been consumed during the reporting period. Consequently, no amount for depreciation has been recognised in respect of these assets.

(d) Work in Progress No depreciation is provided during construction of Assets or on holding costs of Community Projects that are subsequently transferred as a direct grant. Costs associated with assets under development for use by Lotterywest are recognised as work in progress. Once completed, the assets are transferred to the appropriate asset account and are depreciated or amortised, as appropriate.

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(e) Revaluation of Land, Buildings, Plant and Equipment With the introduction of AASB 1041, Lotterywest agreed on a policy of valuing land and buildings and works of art at fair value, with all other assets being valued at cost. The annual revaluations of Lotterywest’s land and buildings undertaken by the Valuer General’s Office, for the Government Property register, are recognised in the financial statements if they differ materially from book values.

(f) Leases Lotterywest has a whole of government operating lease arrangement for motor vehicles, where the lessors retain effectively all of the risks and benefits incident to the ownership of the leased vehicles. Equal instalments of the lease payments are charged to the Statement of Financial Performance over the lease term, as this is representative of the pattern of benefits to be derived from the leased vehicles.

(g) Inventories Inventories are valued, on the first-in first-out basis, at the lower of cost or net realisable value.

(h) Receivables Accounts receivable are recognised at their face value as they are generally due for settlement no more than thirty days from the date of recognition. The extent to which receivables are expected to be collectable is reviewed on an ongoing basis. Debts, which are known to be uncollectable, are written off. A provision for doubtful debts is raised when some doubt exists as to collection.

(i) Investments Investments are brought to account at cost and interest income and capital gains are recognised in the Statement of Financial Performance. If there is a permanent diminution in the value of investments, a provision for diminution is made.

(j) Net Fair Values of Financial Assets and Liabilities Financial instruments traded in an organised financial market (traded securities) are valued on the basis of current quoted market value. Monetary financial assets and liabilities not traded in an organised financial market are valued on the cost basis of carrying amounts of receivables, payables and accruals (which approximates net market value).

(k) Payables Payables, including amounts not yet billed, are recognised when Lotterywest becomes obliged to make future payments as a result of a purchase of assets or services. Other than payables in respect of prizes and grants (see 1(l) and 1(m)), settlement generally occurs within 30 days.

(l) Prizes Division 1 prizes are paid two weeks after the date of the draw, subject to claim. The majority of other prizes are claimed and paid within a few days of the draw taking place. Revenues and liabilities are recognised by draw for Lotto, Super 66, Cash 3 and Soccer Pools and by shipment to Retailers for instant lotteries.

(m) Grants to Eligible Organisations Grants are recognised when approved by the Minister. Unconditional grants are paid in full within days of the Minister’s approval. Conditional grants are paid as and when conditions are fulfilled. If a grant is refunded but it is expected that it will be reissued, the amount is credited to the grant liability, otherwise the amount is written back. When a grant is written back regardless of when it was approved, it is treated as a reduction of the current year’s grant expense.

(n) The Goods and Service Tax The Goods and Services Tax (GST) has an effect on the amounts reported in these financial statements to the extent that the timing of payments and receipts may cause a substantial balance to be included in Receivables or Payables.

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(o) Employee Benefits Annual Leave This benefit is recognised at current remuneration rates and is measured at the amount unpaid at the reporting date in respect to employees’ service up to that date. Long Service Leave A liability for long service leave is recognised, after three years’ service, and is measured at current remuneration rates, but taking account of any expected future pay increases. An actuarial assessment was carried out in 2001 and it was determined that this assessment was not materially different from the reported liability. This method of measurement of the liability is consistent with the requirements of Accounting Standard AASB 1028 “Accounting for Employee Benefits”. Superannuation Certain staff contribute to the Gold State Superannuation Scheme, a defined benefit lump sum scheme now closed to new Members. All staff who do not contribute to this scheme become non-contributory Members of the West State Superannuation Scheme, an accumulation fund complying with the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992. The liability for the pre-transfer service liability for employees who transferred to the Gold State Superannuation Scheme, is provided for at reporting date. The liabilities for superannuation charges under the Gold State Superannuation Scheme and West State Superannuation Scheme are extinguished by fortnightly payments of employer contributions to the Government Employees Superannuation Board. The note disclosure required by paragraph 6.10 of AASB 1028 (being Lotterywest’s share of the difference between employees’ accrued benefits and the net market value of plan assets) has not been provided, as the Government Employees Superannuation Board’s records are not structured to provide the information. Accordingly, deriving the information for Lotterywest is impractical under current arrangements and thus any benefits thereof would be exceeded by the cost of obtaining the information. State scheme deficiencies are recognised by the State in its whole of government reporting.

(p) Accrued Salaries Accrued salaries represent the amount due to staff but unpaid at the end of the financial year and are normally included in other creditors and accruals.

(q) Resources received free of charge or for nominal value Resources received free of charge or for nominal value which can be measured reliably, are recognised as revenues and as assets or expenses, as appropriate, at fair value.

(r) Foreign Currency Translation and Hedges Transactions denominated in a foreign currency are translated at the rates in existence at the dates of the transactions. Foreign currency receivables and payables at reporting date are translated at exchange rates current at reporting dates. Exchange gains and losses (if any) are brought to account in determining the result for the year.

(s) Comparative figures Comparative figures are, where appropriate, reclassified so as to be comparable with the figures presented in the current financial year.

(t) Rounding Amounts in the financial statement have been rounded to the nearest thousand dollars, or in certain cases, to the nearest dollar.

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2. TRADING PROFIT Trading profit is derived from gross sales less prizes and Retailer Commissions as follows:

2003 2002 $000s $000s Sales Lotto 401,431 370,506 Scratch’N’Win 78,635 73,569 Super 66 4,272 4,571 Cash 3 5,134 4,671 Soccer Pools 1,378 1,369 490,850 454,686 Less: Prizes Lotto 227,011 217,026 Scratch’N’Win 47,546 43,695 Super 66 2,563 2,743 Cash 3 2,623 2,287 Soccer Pools 646 642 280,389 266,393

Less: Retailers’ Commissions

Lotto 30,370 25,989

Scratch’N’Win 6,283 5,881

Super 66 299 320

Cash 3 359 327

Soccer Pools 91 90

37,402 32,607

173,059 155,686 Trading profit

Allocation of prize monies represents approximately 60% of sales net of commissions, except for Soccer Pools for which the allocation is not less than 50% of sales net of commissions and Cash 3 for which the liability depends on the number of winners per game and averaged 51.1% for the year (48.5% in 2001/2002) The prize pool is supplemented from time to time by additional prizes, the values of which are included in the totals above. Retailers are paid a commission for the sale of all products and Player Registration Service (PRS) subscriptions. PRS commission is deducted from reported PRS sales (see note 5).

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3. FORFEITED PRIZES The Lotteries Commission Act 1990 (as amended) provides for the following forfeiture rules:

Instant lotteries – 12 months after the last issue of tickets in an individual game

Other products – 12 months from the date of the draw.

4. RETAILER FEES Retailer Establishment Fees (REF) were set at $25,000 for Retailers commencing in a new outlet and the lesser of $25,000 or 1% of the last twelve month’s gross sales for Retailers taking over an existing outlet. REF represented a contribution by new Retailers towards the costs of distributing and marketing lottery products. On 1st January 2003 Lotterywest ceased charging REF and replaced it with the Saturday Lotto Service Fee (SLSF). The SLSF is charged at 0.5% of Saturday Lotto sales. During 2002/2003 REF totalled $0.156 million and SLSF totalled $0.768 million (REF totalled $0.614 million in 2001/2002).

5. PLAYER REGISTRATION SERVICE Lotterywest’s Player Registration Service allows players to register with the organisation and have their unclaimed prizes (other than for instant lotteries) remitted to them five weeks after the relevant draw. The service fee to players is $5 per two year membership.

2003 2002 $000s $000s Sales 364 480

Less: Retailers’ Commissions (28) (37) 336 443

6. NET PROFIT OR LOSS ON DISPOSAL OF NON-CURRENT ASSETS

2003 2002 $000s $000s

Proceeds from disposals of non current assets 0 0

Cost of disposals of non current assets 8 11 Computer Equipment Net profit / (Loss) (8) (11)

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7. OTHER REVENUES FROM ORDINARY ACTIVITIES Other revenue comprises Lotto results hotline income fees, insurance claims and other miscellaneous income. Also included in other operating revenue is $8,629 of resources received free of charge from the Crown Solicitor’s office.

8. REMUNERATION OF AUDITOR The total fees paid or due and payable to the Auditor General for the financial year is as follows: 2003 2002 $000s $000s Auditing the accounts 79 79

9. BUILDING AND FACILITY MANAGEMENT 2003 2002 $000s Building Management 410 456 Building Facility - Depreciation 240 261 Motor Vehicle Fleet Management 159 137 Staff Costs 108 113 Voice Management 161 167 Allocation to Funding Management (see note 16) (117) (126) 961 1,008

10. CORPORATE MANAGEMENT

2003 2002 $000s $000s Administration & Support 444 332 Board of Commissioners 77 86 Compliance & Corporate 923 876 Corporate Identity / Image / PR 974 0 External Reporting 21 35 Investments 38 39 Staff Costs 3,719 3,671 Cost of Disposals of Non Current Assets 8 11 Allocation to Funding Management (see note 16) (951) (954) 5,253 4,241

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11. GAMING SYSTEM MANAGEMENT 2003 2002 $000s $000s Backup Computer Site 45 103 Gaming Telecommunications 1,295 1,093 Gaming Software 965 609 Primary System - Gaming 303 124 Primary System - Depreciation 2,061 2,123 Secondary System - Gaming 50 48 Staff Costs 880 1,047 5,599 5,147

12. NON-GAMING SYSTEM MANAGEMENT 2003 2002 $000s $000s Databases & Systems’ Development 182 258

LAN / PCs / Peripherals – Hardware & Software 163 243 LAN / PCs / Peripherals – Depreciation 1,110 1,156 Players Registration Service 136 259 Website 34 31 Staff Costs 869 884 Other 2 5 Allocation to Funding Management (see note 16) (362) (415) 2,134 2,421

13. PRODUCT MANAGEMENT These expenses relate to the production, promotion and distribution of Lotterywest products: 2003 2002 $000s $000s Advertising – Media 5,653 6,832 Advertising – Production 2,586 727 Bloc Liaison 183 178 Research 350 224 Results / Draws 148 193 S & W Tickets 2,057 2,268 Staff Costs 634 657 Other 385 350 11,996 11,429

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14. RETAIL NETWORK MANAGEMENT These expenses relate to the management and support of our network of 481 retail outlets. 2003 2002 $000s $000s Point of Sale 43 107 Retailers Network 770 691 Terminal Gaming 696 610 Point of Sale - Depreciation 197 213 Staff Costs 1,875 1,862 3,581 3,483

15. DEPRECIATION 2003 2002 $000s $000s Property 136 117 Equipment and Fittings 328 385 Computer Equipment 3,171 3,279 3,635 3,781

Charged to Building & Facility management 240 260 Charged to Gaming & Non-Gaming System management 3,171 3,279 Charged to Retail Network Management 197 213 Charged to Funding Management 27 29 3,635 3,781

16. FUNDING MANAGEMENT These expenses are salaries and other costs associated with the distribution of lottery funds (as prescribed by the Lotteries Commission Act 1990) as direct grants to eligible organisations. They are separated from other operating expenses in order that the operating profit is readily comparable with that of other lottery jurisdictions where the distribution of funds is an external function.

2003 2002 $000s $000s

Funding Operations & Administration 46 122

Marketing – Community Funding 35 26

Depreciation – Lotteries House 27 29 Staff Costs 1,542 1,362

Allocation from other Activities 1,430 1,495 3,080 3,034

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17. COMMUNITY FUNDING The Act provides for the following allocations from net subscriptions of all products:

Statutory 40% to the Hospital Fund (State Treasury); 5% to the Arts Lotteries Account (State Treasury); 5% to the Sports Lotteries Account (State Treasury);

Direct 12.5% to eligible organisations for charitable or benevolent purposes and up to 5% in total for the Perth International Arts Festival and the Western Australian commercial film industry. Any remaining surplus from Lotterywest’s operations is also available for distribution as direct grants.

2003 2002 $000s $000s Hospital Fund 75,051 71,419 Arts Lotteries Account 9,381 8,927 Sports Lotteries Account 9,381 8,927 Direct Grants (a) 51,221 46,283 145,034 135,556 Less: Grants written back (see Note 1(m)) (1,109) (834)

Total per Statement of Financial Performance 143,925 134,722

(a) 2003 2,002 $000s $000s Total Direct Grants Approved for 2003 51,316 46,350 Less: Grants approved and written back (95) (67)

Direct Grants 51,221 46,283

18. OTHER FINANCIAL ASSETS Lotterywest’s investment guidelines conform with the Financial Administration and Audit Act 1985 and the Trustees Act 1962 (as amended).

2003 2002 $000s $000s Current Investments: Short Term Products 89,623 70,743 89,623 70,743 Non Current Investment Fixed Rate Products 26,992 6,962 Floating Rate Notes 0 15,997 26,992 22,959

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19. INVENTORIES 2003 2002 $000s $000s Instant Lottery Tickets 707 720 Point of Sale Materials 113 126 Printing and Stationery 19 10 839 856

20. RECEIVABLES 2003 2002 $000s $000s Trade Debtors 9,839 14,211

GST Receivable 1,266 969

Accrued Interest 829 819

Prepayments 371 461 12,305 16,460

21. WORK IN PROGRESS

2003 2002 $000s $000s Lotteries Houses 433 4,051

Other Projects 767 1,312 1,200 5,363

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22 PROPERTY, PLANT & EQUIPMENT

2003 2002 $000s $000s Property at fair value 8,283 8,176

Less: Accumulated Depreciation (600) (464) 7,683 7,712

Equipment and Fittings (Works of Art) at fair value 195 195 195 195

Equipment and Fittings at cost 5,363 4,803 Less: Accumulated Depreciation (3,792) (3,485) 1,571 1,317

Computer Equipment at cost 28,336 27,507

Less: Accumulated Depreciation (15,849) (13,373)

12,487 14,134 Total Net Book Value of Property, Plant and Equipment 21,936 23,359

Reconciliations

Reconciliations of the carrying amounts of building, plant and equipment at the beginning and end of the current and previous financial years are set out below:

Building Equipment & Computer Fittings Equipment 2003 2003 2003 $000s $000s $000s Carrying amount at start of year 7,712 1,512 14,134 Additions 107 583 1,533 Disposals 0 0 (8) Depreciation (136) (329) (3,172) Carrying amount at end of year 7,683 1,766 12,487

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23. PAYABLES

2003 2002 $000s $000s Prizes Payable Unclaimed in current year 16,221 21,312 16,221 21,312 Community Funding

Hospital Fund 886 835 Arts Lotteries Account 971 968 Sports Lotteries Account 971 968 Direct Grants 52,626 46,779 55,454 49,550 Other Payables Trade Creditors 2,235 2,518 Other Creditors and Accruals 337 1,651 2,572 4,169

24. PROVISIONS

2003 2002 $000s $000s Current Annual Leave 631 592 Long Service Leave 279 322 Bonus Prizes (a) 11,991 10,838 12,901 11,752 Non-current Long Service Leave 1,008 990 Superannuation Entitlements (b) 306 401 1,314 1,391

Total Employee Benefit Provisions 2,224 2,305

(a) Provision for Bonus Prizes consists of amounts set aside for future bonus draws to promote sales. (b) The liability for superannuation entitlements has been established from data supplied by the Government Employees Superannuation Board.

Lotterywest considers the carrying amounts of employee entitlements approximate the net fair value.

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25. EQUITY 2003 2002 $000s $000s Asset Revaluation Reserve

Opening Balance 598 598 Closing Balance 598 598

Retained Earnings Opening Balance 56,654 53,668 Net Profit for the year 11,087 2,986

Closing Balance 67,741 56,654

68,339 57,252 Total Equity

26. COMMITMENTS FOR EXPENDITURE 2003 2002 $000s $000s Capital Expenditure Commitments Not later than one year 0 227

Cancellable Operating Lease Commitments (a) Not later than one year 81 64 Later than one year but not later than five years 44 25 125 316

(a) This relates to lease agreements commenced during 1996/97. These figures were supplied by the WA Treasury and relate to motor vehicle lease agreements. Lotterywest’s leases are generally for two to three years within a ten-year contract. Although it is probable that the arrangement will continue to operate at much the same level for the full period of the contract, no commitment is included for later renewals.

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27. NOTES TO THE STATEMENT OF CASH FLOWS Reconciliation of Cash For the purposes of the Statement of Cash Flows, cash assets includes cash on hand and in banks and investments in money market instruments. Cash at bank includes cash and deposits on call. Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to related items in the Statement of Financial Position as follows: 2003 2002 $000s $000s Cash assets Cash at Bank 5,977 7,066 Cash on Hand 82 205 Cash at Bank & on Hand 6,059 7,271 Other Financial Assets - Current 89,623 70,743

95,682 78,014 Total Per Statement of Cash Flows

Non-cash Financing and Investing Activities During the financial year, there were no assets/liabilities transferred/assumed from other government agencies not reflected in the Statement of Cash Flows.

Reconciliation of Profit from Ordinary Activities to Net Cash Flows provided by Operating Activities 2003 2002 $000s $000s Profit from ordinary activities 11,087 2,986 Non-cash items Depreciation 3,635 3,781 Forfeited Prizes (4,693) (4,526) Net Loss on Disposal of Non-Current Assets 8 11

(Increase)/decrease in assets Receivables 4,372 (4,267) Work-in-Progress 4,163 (4,581) Inventories 17 30 Accrued Interest (10) (378) Prepayments 90 (192) Increase/(decrease) in liabilities Prizes Payable (398) 6,181 Community Funding 5,904 3,623 Sales in Advance 569 100 Payables (283) (5,595) Other Creditors and Accruals (1,314) 1,498 Current Provisions 1,149 1,111 Non-Current Provisions (77) 180 Change in GST in Receivable/Payables (297) 5,789

Net cash Provided by Operating Activities 23,922 5,751

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28. EXPLANATORY STATEMENT The following tables provide details of significant variations between actual revenues and expenditures for the financial year compared with the corresponding items for the preceding year and the corresponding items in the budget. Significant variations are considered to be those in excess of 10% and/or where the amount isdeemed significant in context.

Significant Variations between Actual Revenues and Expenditures for 2002/2003 and Actual Revenues and Expenditures for 2001/2002

2003 2002 Actual Actual Variance $000s $000s % $000s Revenue Interest 7,390 5,958 24.0 1,432 Player Registration Service Revenue 336 443 (24.1) (107) Expenses Non Gaming Management 2,134 2,421 (11.9) (287) Corporate Management 5,253 4,241 23.8 1,012

28.1. Interest The 2002/2003 average fund size grew to $148M, compared to the 2001/2002 average of $122M, the fund size coupled with an average interest rate of 4.91% contributed to the $1.4M (24.0%) increase in interest. 28.2. Player Registration Service PRS revenue decreased by $107,000 when compared to the 2002 result, PRS provides a two year service to Lotterywest players. 2002/2003 was the end of a cycle therefore the decrease is representative of players re-registration during 2001/2002. 28.3. Non Gaming Management The decrease of $287,000 (11.9%) when compared to 2002 is mainly as a result of timing difference in systems contract payments & software licences. 28.4. Corporate Management The increase of $1.0M, 23.8% is as a result of the unplanned write off due to the change in the Accounting Standard relating to Internally Generated Brands.

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Significant Variations between Estimated Revenue and expenses for 2002/2003 and actual Revenues and Expenses for 2002/2003

2003 2003 Actual Revised Variance Budget $000s $000s % $000s Revenue Sales 490,850 467,504 5.0 23,346 Interest 7,390 6,070 21.7 1,320 Player Registration Service Revenue 336 372 (9.7) (36)

Expenses Building & Facility Management 961 1,120 (14.2) (159) Corporate Management 5,245 4,478 17.1 767 Gaming System Management 5,599 6,272 (10.7) (673)

Non Gaming System Management 2,134 2,777 (23.1) (643)

28.5 Sales Revenue Among the year’s highlights was the revenue received from the sales of Lotterywest products of $490.85M. This was $23.35M (5.0%) higher than budgeted sales for the year ($467.50M). The excellent sales performance was due to Saturday Lotto price rise implemented 9/12/2002 (22.5% inclusive of retailer Commission), continuing strong sales growth for Saturday including Lotto Bonus, Super and Megadraws, and the higher level of Powerball Jackpots which occurred this year. 28.6. Interest Investment income for 2003 was $1.3M (21.7%) higher than budget. The budget was based on an average fund size of $130M when compared with the actual fund size of $148M. However, the actual average interest rate of 4.91% was marginally lower than the budgeted rate of 5.16%. 28.7 Player Registration Service As a result of a full review of the player registration service, planned promotional activity on PRS was delayed, resulting in $36,000 (9.7%) lower sales. 28.8 Building & Facility Management Costs relating to building & facilities management decreased by $159,000 (14.2%) when compared to budget, largely as a result of savings on mobile rates, telephone rental and call costs, lower power consumption and efficiencies in vehicle running and plant and equipment maintenance costs. 28.9 Corporate Management Costs relating to corporate management increased by $767,000 (17.1%) when compared to budget, the main reason being the early adoption of the International Accounting Standard on internally generated brands which was originally budgeted to be capitalised. 28.10 Gaming System Management Costs relating to gaming systems payable in USD decreased by $673,000 (10.7%) when compared to the 2003 budget, savings were made as a result of the favourable USD/AUD cross rates. Lower capital expenditure in this area resulted in savings in depreciation charges. Other operational savings were realised in relation to Uninterrupted Power Supply lease costs, and digital data network savings for the regional areas. 28.11 Non Gaming System Management Costs relating to non gaming management decreased by $643,000 (23.1%) when compared to budget, largely as a result of savings relating to a PRS project which was deferred due to competing corporate priorities.

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29. FINANCIAL INSTRUMENTS Interest Rate Risk Exposure Lotterywest’s exposure to interest rate risk, re-pricing maturities and the effective interest rates on financial instruments are:

Floating Fixed Non 2003 2002 Interest Interest Interest Rate Rate Bearing Total Total $000s $000s $000s $000s $000s Assets Cash Assets 6,059 0 0 6,059 7,271 Receivables 0 0 12,305 12,305 16,460 Investments Short Term (< 1 year) 0 84,623 0 84,623 70,743 Floating Rate One year or less 5,000 0 0 5,000 0 One to five years 13,992 0 0 13,992 5,997 Over five years 13,000 0 0 13,000 10,000 Fixed Rate One to five years 0 0 0 0 6,962 Total Financial Assets 38,051 84,623 12,305 134,979 117,433 Liabilities Payables 0 0 2,572 2,572 4,169 Provisions 0 0 14,215 14,215 13,143 Prizes Payable 0 0 16,221 16,221 21,312 Total Financial Liabilities 0 0 33,008 33,008 38,624

Net Financial Assets/(Liabilities) 38,051 84,623 (20,703) 101,971 78,809

Interest Rates were as follows: 2003 2002 % % Cash Assets 4.70 4.75 Investments Short Term 4.78 4.87 Floating Rate 1 year or less 5.13 N/A 1 to 5 years 5.08 5.37 over 5 years 5.47 5.44 Corporate Bond 1 to 5 years N/A 5.75

Credit Risk Exposure All financial assets are unsecured. The carrying amount of financial assets recorded in the financial statements represents Lotterywest’s maximum exposure to credit risks in relation to these assets.

Net Fair Value The carrying amount of financial assets and financial liabilities recorded in the financial statements are not materially different from their net fair values, determined in accordance with the accounting policies disclosed in note 1 (j) to the financial statements.

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30. REMUNERATION OF MEMBERS OF THE ACCOUNTABLE AUTHORITY AND SENIOR OFFICERS

Members of the Accountable Authority The number of Members of the Accountable Authority, whose total of fees, salaries, superannuation and other benefits received, or due and receivable, for the financial year, fall within the following bands are: 2003 2002 $1 to $10,000 5 7 $10,001 to $20,000 0 0 $20,001 to $30,000 1 1 6 8

The total remuneration of the Members of the Accountable Authority is $ 74,414 $ 72,909

Senior Officers The number of Senior Officers, other than Members of the Accountable Authority, whose total of fees, salaries, superannuation and other benefits received, or due and receivable, for the financial year, fall within the following bands are:

2003 2002 $110,001 to $120,000 4 4 $120,001 to $130,000 0 0 $130,001 to $140,000 0 1 $140,001 To $150,000 1 0 5 5

The total remuneration of senior officers is: $ 603,874 $ 674,096

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31. SEGMENT INFORMATION Lotterywest has two outputs; provision of lottery products (Gaming) and community funding (Funding), the latter being the distribution of funds derived from the lottery operations of Lotterywest. Lotterywest operates in a single geographic segment ie Western Australia.

Gaming Funding General Total 2003 2002 2003 2002 2003 2002 2003 2002 $000s $000s $000s $000s $000s $000s $000s $000s

REVENUE Revenues from ordinary activities

Trading profit 173,059 155,686 0 0 0 0 173,059 155,686

Other revenues from 7,047 6,502 0 0 7,510 6,281 14,557 12,784 ordinary activities Proceeds from disposal 0 0 0 0 0 0 0 0 of non-current assets Total revenues from 180,106 162,188 0 0 7,510 6,281 187,616 168,470 ordinary activities

EXPENSES Building & Facility 0 0 0 0 961 1,008 961 1,008 Management Corporate Management 0 0 0 0 5,253 4,241 5,253 4,241

Gaming System 5,599 5,147 0 0 0 0 5,599 5,147 Management Non-gaming System 0 0 0 0 2,134 2,421 2,134 2,421 Management Product Management 11,996 11,429 0 0 0 0 11,996 11,429

Retail Network 3,581 3,483 0 0 0 0 3,581 3,483 Management Funding Management 0 0 3,080 3,034 0 0 3,080 3,034

Total expenses from 21,176 20,059 3,080 3,034 8,348 7,670 32,604 30,763 ordinary activities Profit before 158,930 142,129 (3,080) (3,034) (838) (1,389) 155,012 137,707 community funding

Less: Funding (158,930) (142,129) 0 0 838 1,389 0 0 Transfers

Amount available for 0 0 155,012 137,707 0 0 155,012 137,707 distribution Total community 0 0 (143,925) (134,722) 0 0 (143,925) (134,722) funding

Net profit 0 0 11,087 2,986 0 0 11,087 2,986

Page 74 of 93 Page 75 of 93 Lotteries Commission Annual Accounts Budget Annual Report 2003

OPERATING BUDGET FOR 2004 In accordance with Treasurer’s Instruction 953, this statement shows the 2003/2004 Budget estimate for the Statement of Financial Performance. This statement is not subject to audit. The Minister approved the budget on 17th June 2003.

For the year ended 2004 2004 2003 Variance Budget Actual 2004 -2003 $000s $000s $000s Revenue Sales revenue 500,008 490,850 9,158 Less: Cost of sales Prizes 280,070 280,389 (319) Retailers’ commissions 39,384 37,402 1,982 Total Cost of Sales 319,454 317,791 1,663 Trading profit 180,554 173,059 7,495 Other revenue from ordinary activities Interest 6,000 7,390 (1,390) Forfeited prizes 4,140 4,693 (553) Retailer fees 2,548 2,018 530 Player Registration Service 500 336 164 Other operating revenue 25 120 (95) Total revenues from lottery activities 13,213 14,557 (1,344) Expenses from lottery activities Building & Facility management 1,111 961 150 Corporate management 6,116 5,253 863 Gaming System management 6,073 5,599 474 Non-gaming System management 3,094 2,134 960 Product management 11,732 11,996 (264) Retail Network management 3,583 3,581 2 Total expenditure from lottery activities 31,709 29,524 2,185

Profit from lottery activities 162,058 158,092 3,966

Community Funding Funding management 2,972 3,080 (108) Total available for distribution 159,086 155,012 4,074 Direct Grants 56,000 50,112 5,888 Hospital Fund 75,000 75,051 (51) Sports/Arts Lotteries accounts 18,750 18,762 (12) Total community funding 149,750 143,925 5,825 NET PROFIT 9,336 11,087 (1,751)

Page 74 of 93 Page 75 of 93 Budget Budget Annual Report 2003

NOTES TO THE BUDGET FOR 2003/2004

Sales The total sales budget for 2003/2004 of $500.00M represents an increase of $9.15M compared to the 2002/ 2003 outturn.

The key issues relating to the sales target are: • Inclusion of a Powerball Lotto $30M jackpot due to a jackpot sequence change. • Saturday Lotto Megadraw, offering $24M Division 1 prize - budgeted at a sales level of $16.0M • An additional Saturday Lotto Super Draw has been added to this year’s game, bringing the total number of Super Draws to five. • The two Mega Draws will continue during 2003/2004, offering players division one prize pools of $30M and $23M respectively. Expected revenue for the Mega Draws are $16.5M and $12.0M respectively. • Saturday Lotto base week sales budgeted at $4.50M • Scratch’n’Win budget of $76.8M, an decrease of $1.8M (2.4%) when compared to the 2002/2003 outturn. A strategy for focusing on the $3.00, $4.00 and $5.00 price points is to be developed in 2003/04 financial year. • The introduction of a new dispenser, located within the Lotterywest zone and in close proximity to the Lotto terminal is one of the most significant changes to the Scratch’n’Win Brand. • Cash 3 sales target of $4.99M.

Interest The Investment income budget for 2003/2004 is $6.0M, $1.4M higher than the actual result for 2002/03 financial year.

Forfeited Prizes The Forfeited Prizes budget for 2003/2004 of $4.14M is $1.32M lower than the actual result for 2002/2003 financial year. It is expected that players will be aware and use Players Registration Service more frequently as a result of Lotterywest’s marketing strategies around this product.

Player Registration Service In previous years, players registered for this service for a period of two years. In 2003/2004, as a result of comprehensive research, Lotterywest will extend the membership period to a four year period. This extended membership period, at the same annual cost is expected to attract more members, streamline processes and reduce costs.

Page 76 of 93 Page 77 of 93 Budget Budget Annual Report 2003

Operating Expense Budget The expense budget for 2003/2004 amounts to $34.68M, and represents an expense to sales ratio of 6.9%, marginally higher than the 2002/2003 outturn of 6.7%. Consistent with previous years planning, expenses have been budgeted at this level largely as a result of Lotterywest’s overall strategy to contain expenditure to short term sustainable levels of approximately 7%. Significant budgets are outlined below: The Lotterywest corporate image project includes operational expenses of $0.72M which will cover advertising campaigns (production and media), a corporate brand review - market research, brochures and stationery as well as a corporate brand launch function and staff uniforms.

Salary Costs Lotterywest salaries are forecasted to increase when compared to 2002/2003 base salaries by $0.60M. This increase is as a result of a provision for the recruitment of two additional contracted employees to manage Lotterywest’s retail image shopfit. Also, effective from March 2003 Lotterywest staff conditions of employment are covered by the General Agreement. As a result of this agreement, annual leave loading has become available as has an increase in the On-call allowance, the effect of both of these changes amounts to approximately $0.2M.

Page 76 of 93 Page 77 of 93 Five Year Summary Direct Grants Annual Report 2003

FIVE YEAR SUMMARY OF FINANCIAL DATA For the Year Ended 30 June 2003

Statement of Financial Performance 2000 2001 2002 2003 2004 Actual Actual Actual Actual Budget $000s $000s $000s $000s $000s

Sales Revenue 444,652 455,235 454,686 490,850 500,008 Less: Cost of Sales Prizes 261,712 267,090 266,393 280,389 280,070 Retailers’ commissions 34,470 34,119 32,607 37,402 39,384 Add: Other revenue Interest 6,167 7,319 5,958 7,390 6,000 Forfeited prizes 5,847 3,967 4,525 4,693 4,140 Retailer fees 4,166 2,914 1,534 2,018 2,548 Player Registration Service 454 327 443 336 500 Other operating revenue 188 605 323 120 25 Net revenue from ordinary activities 165,293 169,158 168,471 187,616 193,767

Less: Expenses

Operating expenses 24,846 536 27,758 29,524 31,709 Funding management 3,062 2,954 3,005 3,080 2,972 Profit from ordinary activities 137,385 165,668 137,708 155,012 159,086

Less: Community Funding 124,611 134,073 134,722 143,925 149,750

NET PROFIT 12,775 31,595 2,986 11,087 9,336

Statement of Financial Position Assets Investments 71,327 75,390 72,705 89,623 55,750 Other current assets 6,606 18,700 24,587 19,203 11,680 Non-current assets 41,828 45,630 49,985 53,901 47,690 Total assets 119,761 139,720 147,277 162,727 115,120 Liabilities 69,613 85,473 89,758 94,388 85,571

Net Assets 50,148 54,247 57,252 68,339 29,549

This table is supplied as a supplement to the Annual Report in order to provide the reader with an overview of the Commission’s performance and expectations.

Page 78 of 93 Page 79 of 93 Five Year Summary Direct Grants Annual Report 2003

DIRECT GRANTS SUMMARY

Number Amount 2003 2003 $000s Total requests on agenda 1,668 71,388 Total approved requests 1,509 51,316 Total requests not approved 159 20,072

DIRECT GRANTS PROGRAM SUMMARY No. of Approved Requests Amount Granted 2003 2002 2003 2002 $000s $000s Community Cultural 210 235 1,702 1,853 Community Sector Development 49 57 580 500 Community Support & Development Community Support 303 295 17,400 18,315 Emergency Relief 119 126 1,284 1,481 Emergency Services 89 99 2,356 2,400 Medical Research 1 1 4,005 45 Social Research 6 7 358 515 Special Initiatives 9 9 1,806 1,588 Environment Heritage 109 86 2,037 1,416 Conservation 56 41 1,235 541 Priority Groups with Special Needs Aboriginal People 46 52 2,162 2,361 Children 134 189 814 964 People with Disabilities 256 229 5,041 5,019 People with Gambling Problems 1 1 72 72 Seniors 67 58 3,333 1,742 Young People 55 61 2,874 1,805 Other Statutory The University of Western Australia for the 1 1 3,600 3,100 Perth International Arts Festival ScreenWest 1 2 700 2,633

Total Direct Grants for 2002/2003 1,512 1,549 51,359 46,350 Less amounts written back relating to grant approvals during the year (95 ) (67 ) Net Approvals 51,264 46,283

Page 78 of 93 Page 79 of 93 Direct Grants Direct Grants Annual Report 2003

DIRECT GRANTS LIST Organisation Name Amount Granted Organisation Name Amount Granted The following grants were recommended by the Commission and approved by the Minister during the year in accordance with sections 22(a) and 24 of the Lotteries Commission Act 1990 (as amended).

Organisation Name Amount Granted Organisation Name Amount Granted

2nd Avenue Singers (Inc.) 2,453 Augusta Community Development Assn Inc 2,273 A.T.U.L. (Aid to Useful Living) Ltd 1,409 Augusta Margaret River State Emergency Service Unit 18,000 ABC Toy Library Inc 3,000 Australasian Spinal Research Trust Inc 8,721 Acacia Support Centre Incorporated 7,012 Australia - Japan Society of Geraldton Inc 3,793 ACROD Limited 15,000 Australia Day Council of Western Australia Inc 101,035 Activ Foundation Inc 116,756 Australian - Asian Assn of W.A. (Inc) 7,818 Activ Foundation Inc - Bunbury 35,609 Australian Association of Teachers of the Deaf (WA Branch) 5,000 Activ Foundation Incorporated - Variety Pelican Centre 61,257 Australian Flying Corps & Royal Australian Air Force Assn WA 13,377 Div Inc - Merriwa Active Community Environmentalists (Inc) 5,000 Australian Flying Corps & Royal Australian Air Force Assn WA 7,068 Adoptions International of Western Australia Inc 7,338 Div-Meadow Springs Advocates for Survivors of Child Abuse 8,000 Australian Irish Heritage Association of Western Australia (Inc) 1,450 Agencies for South West Accommodation Inc 225,800 Australian Lactation Consultants Association Inc - WA Branch 5,200 Albany Aboriginal Corporation Inc 13,287 Australian Railway Historical Society (W.A. Division) Inc 30,633 Albany Halfway House Association Inc 6,150 Australian Red Cross Society - WA Division 1,000 Albany Historical Society Inc - Maritime Paintings Project 16,345 Australian Red Cross WA Division - Denmark Shop 13,544 Albany Historical Society Inc - Old Gaol Museum 15,567 Australian Red Cross WA Division - Lady Lawley Cottage 326,535 Albany Model Aero Club Incorporated 1,905 Australian Research Alliance for Children and Youth Limited 675,000 Albany Regional Family History Society Inc 2,037 Australind Family History Society Inc 10,000 Albany Worklink Incorporated 111,000 Australind State Emergency Service Inc 5,000 Albany Youth Support Assn Inc 13,742 Australind Vineyard Christian Fellowship Inc 5,000 Alfred Cove Art Society Inc 2,450 Autism Assn of Western Australia (Inc) 24,491 Altone Leisure Bowlers 4,266 AWESOME Arts Australia Ltd 60,000 Amaroo Cottages For Senior Citizens Inc 107,589 Bakers Hill Progress and Recreation Association Inc 3,505 Anglicare WA Inc 193,926 Balga Action Group (Inc) 6,000 Anglicare WA Inc - WA Community Foundation 10,000 Balga Carers Group Incorporated 9,000 Anxiety Disorders Foundation of Western Australia Incorporated 3,300 Balga Job Link Inc 110,500 Apex Club of Wagin 2,000 Balingup Playgroup 3,000 ARAFMI W.A. Inc (Assn of Relatives and Friends of the 34,694 Ballajura Senior Citizens Association Inc 3,000 Mentally Ill) Bally Bally Community Hall Inc 38,345 Armadale Home Help Service for the Aged and the Disabled 5,720 Inc Bannister Creek Catchment Grp Inc-South East Reg Centre for 70,967 Urban Landcare Armadale Information and Referral Service Inc 16,900 Baris Education and Culture Foundation Ltd 5,000 Army Museum of Western Australia Foundation 15,000 Bassendean State Emergency Service Unit Inc 5,390 Artatac-Busselton Beach Festival Incorporated 4,208 Bay Of Isles Aboriginal Community Inc 1,848 Arthritis Foundation of W.A. Incorporated 1,500 Bay of Isles Community Outreach Inc 2,500 Artists Foundation of W.A. Ltd 24,000 Bayswater Drill Hall and Family Centre 30,559 Ashfield/Bassendean Playgroup Inc 2,000 Bayswater Extended Community Help Organization Inc 44,980 Association for Services to Torture and Trauma Survivors 95,730 (ASETTS) Inc Beagle Bay Community Inc 1,168 Association for the Blind of WA Inc 232,325 Bedfordale Volunteer Bushfire Brigade Inc 9,979 Association of Civilian Widows of W.A. (Inc) 5,000 Beehive Industries of WA Inc 212,027 Association of Independent Retirees Inc - Fremantle/Melville 1,000 Belarusan Association in Western Australia Inc 5,550 Branch Belswan Residents Social Club 1,033 Association of Independent Retirees Inc - W.A. Division 2,035 Bencubbin Playgroup 2,086 ASSPA Committee - Burringurrah Remote Community School 10,000 Better Hearing Australia (WA) Inc. 7,800 Asthma Foundation of WA Inc 10,000 Bibbulmun Track Foundation Inc 30,472

Page 80 of 93 Page 81 of 93 Direct Grants Direct Grants Annual Report 2003

Organisation Name Amount Granted Organisation Name Amount Granted

Bibelmen Mia Aboriginal Corporation 199,750 Business Development Association (North West Metro) (Inc) 60,000 Bicycle Transportation Alliance Inc 4,921 Busselton Child Care Centre Inc 10,000 Bindi Bindi Community Aboriginal Corporation Inc 2,500 Busselton Family Centre Inc 100,000 Bindoon Arts and Crafts Centre (Inc.) 4,000 Byford Baptist Church Inc 3,500 Binningup Community Assoc Inc 4,000 C Y O’Connor Erade Village Foundation 45,885 Birds Australia Western Australia Inc. 37,356 Caledonian Society of Albany Inc 1,048 Blackwood Country Gardens Inc 3,091 Calvary Youth Services Mandurah Inc 3,651 Blind Citizens WA Inc 48,555 Camping and Recreational Opportunities Inc 7,000 Bloodwood Tree Association Incorporated 90,500 Cancer Foundation of W.A. Inc 67,580 Blues at Bridgetown Incorporated 15,000 Cannery Arts Centre (Inc) 6,883 Boddington Bush Fire Brigade 5,000 Capel Fest Inc 12,634 Bolgart Playgroup 3,000 Care Options - Rockingham Home Support Service 1,270 Boogurlarri Community House Inc 7,400 Care Options Inc 10,500 Booragoon Occasional Child Care Centre Inc 10,000 Career Contact Inc 10,000 Botherling Springs Catchment Group Inc 67,100 Career Network Inc 6,826 Boyanup Toy Library Inc 3,050 Carnamah Historical Society Inc 26,990 Boyup Brook District Pioneers Museum (Inc) 4,545 Carnarvon Family Support Service Inc 88,473 Boyup Brook Family Playgroup 1,500 Carnarvon Heritage Group Inc 7,333 Brazier Volunteer Bushfire Brigade 951 Carnarvon Lotteries House 10,277 Bremer Bay Sea Rescue and Boating Club 7,774 Cat Sterilisation Society Inc 10,000 Bridgetown Bowling Club Inc 2,000 Catholic Homes Inc - Servite Villa 278,000 Bridgetown Historical Society Incorporated 4,810 Catholic Homes Inc - Trinity Village 84,735 Bridgetown Repertory Club Inc 3,177 Celebrate Albany Inc 9,500 Brockman House Inc 69,033 Celebrate Western Australia (Inc) 4,370 Brookhampton Bush Fire Brigade 2,389 Centacare Kimberley 2,935 Brookton Telegraph Incorporated 12,802 Central Agcare Inc 13,859 Broome Aboriginal Media Association (Aboriginal Corporation) 15,000 Central Agricultural and Pastoral Aboriginal Corp Inc 16,045 Inc Central Area Region Training Scheme Inc 110,000 Broome Aged and Disabled Services (Inc) 21,532 Central Midlands Aboriginal Progress Assn Inc 7,506 Broome Bowling Club Inc 31,170 Centre for Advocacy Support and Education For Refugees Inc 44,167 Broome Community Info Res Cntr & Learning Exchange Inc 8,441 Centrecare Inc - Goldfields and Esperance 74,640 Broome Lotteries House Inc 14,505 Centrecare Incorporated 771,823 Broome Wildlife & Rescue Association (Inc) 4,400 Cerebral Palsy Assn of Western Australia Ltd 250,465 Brunswick Playgroup 3,000 Channel 31 Community Educational Television Limited 226,944 Bullsbrook Out of School Centre Inc 5,000 Charity Link Inc 211,139 Bunbury Bel Canto Singers Inc 8,565 Cheeditha Group Aboriginal Corporation Inc 13,949 Bunbury Diocesan Trustees - St Andrews Katanning 25,679 Chidlow Family Playgroup and Community Kindergarten Inc 3,000 Bunbury Historical Society (Incorporated) 5,182 Child Abuse and Adult Mental Health Action Group Inc 7,852 Bunbury Horticultural Gardening Club Inc 4,933 Child Migrants Trust Inc 390,000 Bunbury Lotteries House Complex Inc 12,845 Childrens Hospital Child Care Centre Association Inc 24,546 Bunbury Regional Arts Management Board Inc 13,692 Childrens Services Support Unit W.A. (Inc) 8,428 Bunbury Regional Hospital Comforts Fund Inc 3,000 Chung Wah Association Inc 1,440 Bunbury Regional Theatre Incorporated 57,000 Church of Christ Albany - Playgroup 3,000 Bunbury Sea Search and Rescue Group Inc 2,059 Church of the Foursquare Gospel in Aust -Warren Valley 12,726 Bunbury Studio Potters Inc 1,620 Community Church (Revolution Youth) Bunbury Websters Weaving Group 1,712 Churches Commission on Education Inc 41,518 Bunbury Womens Club Inc 1,923 Churches of Christ in Western Australia Inc - Mandurah 10,810 Community Church of Christ Burmese Association of Western Australia (Incorporated) 5,000 Churchill Brook Playgroup 3,000 Bus Preservation Society of Western Australia (Inc) 74,000

Page 80 of 93 Page 81 of 93 Direct Grants Direct Grants Annual Report 2003

Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted

Cirque Bizirque - WA Circus School Inc 4,958 City of Swan - West Gidgegannup Volunteer Bushfire Brigade 1,465 Citizen Advocacy South West Inc 69,162 City of Swan-Swan Communications Vol. Bushfire Brigade Inc 4,098 City Entertainers Community Concert Group Inc 4,544 City of Wanneroo 31,831 City of Albany 29,453 City of Wanneroo - Alexander Heights Community Hall 52,746 City of Albany - Albany Town Hall Theatre 20,000 City of Wanneroo - Quinns Rocks & Wanneroo Volunteer 16,209 Bushfire Brigades City of Albany - Bornholm Bushfire Brigade 1,500 Clackline Progress Assoc Inc 3,657 City of Albany - Kojaneerup Volunteer Bush Fire Brigade 10,000 CLAN WA (Community Link and Network) Incorporated - 107,055 City of Albany - South Coast Volunteer Bushfire Brigade 1,038 Victoria Park City of Albany - Torbay Bushfire Brigade 1,308 Co-Assist Inc 10,000 City of Armadale 17,500 Coalition of Peoples Inc 15,000 City of Armadale - Armadale Kelmscott Senior Centre 190,000 Coastal Scottish Pipe Band WA Inc 5,000 City of Bayswater 28,220 Cockburn Community & Cultural Council Inc 3,000 City of Bayswater - Peninsula Cultural and Community Centre 39,917 Cockburn Vol. Sea Search & Rescue Group Inc 10,000 City of Bunbury 4,480 Collie Bowling Club Inc 12,250 City of Bunbury - Meals on Wheels & Senior Citizens Centre 13,809 Collie Family Centre Incorporated 10,000 City of Canning 25,000 Communicare (Inc) - Kwinana 40,612 City of Canning - Queens Park Community Care Services 181,818 Communicare Inc 19,900 City of Cockburn - South Atwell Community Centre 200,000 Community & Youth Training Services Inc 19,525 City of Cockburn RSL Sub Branch Social Club Inc 58,964 Community Housing Coalition of WA Inc - Kimberley 32,863 City of Cockburn Voluntary State Emergency Service Unit Inc 2,261 Community Management Services City of Fremantle 37,345 Community Link and Network Western Australia Inc (CLAN) 7,579 City of Fremantle - Festival Fremantle 25,000 Conductive Education Association of Western Australia (Inc) 1,000 City of Fremantle - Fremantle Community Youth Service 20,000 Confederation of Australian Motor Sport Ltd 306,500 City of Fremantle - Meeting Place Community Centre 28,221 Congelin Bush Fire Brigade 797 City of Geraldton 9,000 Congregation of Vietnamese Buddhists in W.A. Inc 3,500 City of Geraldton - Geraldton Regional Library 10,000 Connolly Rainbow Toy Library Inc 1,500 City of Geraldton - Queens Park Theatre 48,273 Conservation Council of Western Australia Inc 201,900 City of Gosnells 14,900 Constable Care Child Safety Project Inc 51,871 City of Joondalup 131,400 Coolgardie Day Celebrations Inc 5,795 City of Joondalup - Anchors Youth Services Drop-in Centre 5,000 Coolgardie Telecentre Inc 19,000 City of Joondalup - Connolly Community Centre 58,123 Coorow & Districts Technology Development Association Inc 4,000 City of Kalgoorlie-Boulder 32,218 Cottesloe Child Care Centre Inc 8,340 City of Mandurah 5,500 Cottesloe Playgroup Inc 3,000 City of Mandurah - Mandurah State Emergency Service 10,000 Cottesloe Toy Library Inc 3,000 City of Mandurah Sub-Branch Returned and Services League 4,038 Council on the Ageing (Western Australia) Inc 25,000 Club (Inc) Country Arts (WA) Inc 81,300 City of Melville 23,381 Cranbrook Ceramic Club 4,950 City of Melville - City of Melville Citizens Relief Fund Inc 6,500 Cranbrook Tourist and Business Promotion Group 4,305 City of Nedlands 3,000 Crime Stoppers Western Australia Ltd. 71,453 City of Perth 320,319 Croatian Welfare Assn Inc 5,000 City of Rockingham 43,440 Cross Cultural Christian Communicators Inc 10,000 City of Rockingham - Community Services Building 2,250,779 Crosslinks Incorporated 407,800 City of South Perth 30,000 Crossways Community Services Inc 32,350 City of South Perth - Collier Park Village and Hostel 14,176 Cummins Theatre Inc 23,162 City of Stirling 43,804 Curtin University of Technology - Centre for Aboriginal Studies 5,000 City of Subiaco - Subiaco Museum 5,000 Curtin University of Technology - Kalgoorlie Campus 50,000 City of Swan 30,690 Curtin University of Technology - School of Electrical and 18,238 City of Swan - East Gidgegannup Volunteer Bushfire Brigade 3,691 Computer Engineering City of Swan - Swan Child Care Centre 19,500 Cystic Fibrosis Association of Western Australia Inc 20,000

Page 82 of 93 Page 83 of 93 Direct Grants Direct Grants Annual Report 2003

Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted

Czech and Slovak Association in WA Inc 4,502 Equestrian Federation of Australia (Western Australian Branch) 16,000 (Inc) Dale Cottages Retirement Village Inc 10,000 Escare Incorporated 12,436 Dalwallinu Toy Library Inc 3,000 Esperance Aged Care Facility Inc 200,000 Dalyellup Beach Playgroup 3,000 Esperance Child Care Centre (Lingalonga) Inc 9,670 Dardanup Community Centre Inc 7,045 Esperance Christian Family-Assembly of God Inc - Esperance 1,848 Darling Range Volunteer Bush Fire Brigade 3,000 Care Services Darlington Theatre Players Inc 6,000 Esperance Crisis Accommodation Service Inc 3,696 Daughters of Charity Services (W.A.) Ltd 168,808 Esperance Mechanical Restoration Group Inc 5,000 Daughters of Charity Services (WA) Ltd - Ruah Refuge 1,000 Esperance Showbizz Inc 36,000 Deck Chair Theatre Inc 10,000 Esperance Toy Library Incorporated 1,000 Denmark Arts Council Inc 8,700 Esperance Volunteer Sea Search and Rescue Group Inc 10,000 Denmark Education and Innovation Centre Inc 270,564 Ethnic Child Care Resource Unit Inc 13,371 Denmark Environment Centre (Inc) 15,000 Ethnic Disability Advocacy Centre Inc 51,742 Derbarl Yerrigan Health Service Inc 13,093 Exmouth Volunteer Marine Rescue Group Incorporated 8,640 Derby Home and Community Care Inc 15,366 Eyre Highway Community Association (Inc) 24,000 Derby Regional Hospital Auxiliary Inc 3,000 Fairbridge Western Australia (Inc.) 11,015 Derby State Emergency Service Unit Inc 3,636 Family History Society of Rockingham & Districts Inc 2,630 Derby Toy Library Inc 3,000 Faulkner Park Retirement Estate Residents Association Inc 4,150 Disability and the Arts Disadvantage and the Arts (WA) Inc 211,343 Federation of W.A. Police and Citizens Youth Clubs (Inc) 82,091 (DADAA) Federation of W.A. Police and Citizens Youth Clubs (Inc) - 500,000 Dongara Denison Community Festival Association Inc 6,300 Albany Dongara Playgroup Inc 3,086 Fellowship of Australian Writers (Western Australian Section) 2,541 Donnybrook Balingup State Emergency Service 2,253 (Inc) Dowerin Telecentre (Inc) 20,000 Festival of Busselton Inc 4,250 Drug Arm W.A. Inc 162,616 Fifth Greek Orthodox Archdiocesan District of WA Welfare 5,771 Dumbleyung Playgroup 3,000 Association Dutch Society Neerlandia of WA Inc 18,891 Filipino-Australian Club of Perth Inc 1,000 Dwellingup Business Association Incorporated 4,940 First Steps Playgroup (Inc) 3,000 Earlybirds Playgroup Incorporated 3,000 Foodbank of Western Australia Inc - Albany 15,302 Earthwise Community Association Inc 3,993 Foothills Information and Referral Service Inc 23,076 East Kimberley Family Support Assn Inc 27,273 Forest Lakes/Thornlie Family Centre Inc. 18,576 Eastern Districts Machine Knitting Group 1,674 Foundation for Information Radio of W.A. Inc 16,380 Eastern Goldfields Aboriginal Advancement Council Inc 41,327 Frank Konecny Community Centre Inc 7,783 Eastern Goldfields Aboriginal Corporation Resource Agency Inc 40,205 Frankland Gordon Catchment Management Group Inc 12,470 - Wungagutu Patrol Fremantle Housing Association Inc 22,500 Eastern Goldfields Senior Citizens Centre Inc 2,000 Fremantle Womens Health Centre Inc 16,820 Eastern Goldfields Sexual Assault Group Inc 9,265 Friends of Attadale Foreshore Incorporated 23,616 Eastern Goldfields Young Mens Christian Association (Inc) 5,000 Friends of Baigup 1,945 Eastern Metropolitan Regional Council (EMRC) 86,130 Friends Of Biala Inc 21,439 Eastern Region Domestic Violence Services Network Inc 3,000 Friends of Coolbinia Bushland 1,980 Eaton Combined Playgroup Assn Inc 5,000 Friends of Darlington Station Reserve 1,270 Edge Employment Solutions Inc 75,400 Friends of Mangowine 2,526 Edmund Rice Centre Inc 458,901 Friends of the Art Gallery of W.A. Inc 100,000 El Shaddai Kwinana Christian Fellowship Inc 48,105 Friends of the Cape to Cape Track Inc. 13,310 ELBA Inc 1,500 Friends of the Western Australian Museum Inc 16,398 Embroiderers Guild of Western Australia Inc 3,600 Funky Chickens Playgroup 2,000 Environment House Incorporated 4,942 Gairdner Progress Association Inc 5,000 Environmental Defenders Office WA Inc 14,240 Gawooleng Yawoodeng Aboriginal Corporation Inc - Kununurra 1,000 Environs Kimberley Inc 6,180 Crisis Accommodation Centre Inc

Page 82 of 93 Page 83 of 93 Direct Grants Direct Grants Annual Report 2003

Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted

Gay and Lesbian Archives of Western Australia (“GALAWA”) 4,409 Hedland Playgroup Association (Inc) 3,100 Inc Hedland Well Womens Centre Inc 6,341 Genetic Support Council Western Australia Inc 6,304 Hedland Womens Refuge Inc 102,390 Geraldton Historical Society Inc 5,000 Helping Out People Everywhere Inc 3,404 Geraldton Mabuhay Cultural Association Inc 3,500 Heritage Country Choir Incorporated 2,486 Geraldton Potters Club Inc 5,000 Heritage Individual & Family Support Assn Inc 6,890 Geraldton Regional Community Education Centre Assn Inc 4,000 Hillarys Community Kindergarten Inc 3,000 - Effective Young Parents Program Hills Community Support Group Inc - Open Options Program 30,788 Geraldton Regional Hospital Service Auxiliary 3,000 Hills Community Support Group Incorporated 245,000 Geraldton Resource Centre Inc 21,054 Holling Street Playgroup 3,000 Geraldton Streetwork Aboriginal Corp Inc 46,764 Hotham River Nyoongar Aboriginal Corporation 5,000 German-Australian Welfare Association Inc 5,000 Hudson Road Family Centre Inc 5,043 Gilbert’s Potoroo Action Group Inc 1,674 Human Rights WA (Inc) 10,853 Gingin District Telecentre Inc 20,000 Hyden Occasional Child Care Association Inc. 9,782 Girrawheen Senior High School Parents and Citizens 5,000 Association Incorporated Independent Living Centre of WA Inc 145,009 Gnowangerup Telecentre Inc 20,000 Information for Action Inc 15,400 Goldfields Baptist College CALM Bush Rangers 723 Injured Persons Action and Support Association of W.A. Inc 3,146 Gosnells Armadale Business Development Organisation Inc 10,691 Injury Control Council of W.A. (Inc) 26,691 Gosnells Community Legal Centre Inc 37,500 Institute of Restorative Justice & Penal Reform (Inc) 5,000 Gowrie (WA) Inc 94,990 Irrungadji Group Association Inc 2,000 Gowrie (WA) Inc - Belmont Financial Services 10,000 Irrunytju Community Inc 44,334 Gowrie (WA) Inc - Lady Gowrie Child Care Centre Kewdale 10,000 Irwin District Historical Society (Inc) 4,079 Gowrie (WA) Inc - Willagee Community Centre 10,000 Ishar Multicultural Womens Health Centre Inc 22,790 Granny Spiers Community House Inc 35,500 Islamic Association of Bunbury Inc 2,840 Grass Valley Progress Association Inc 5,000 Italo-Australian Welfare and Cultural Centre Inc 1,309 Graylands Hospital Volunteers Service Inc 7,500 Jacaranda Community Centre Inc 26,107 Great Mates Inc 103,560 Jarlmadangah Burra Aboriginal Corporation - Child Care Centre 3,000 Great Southern Area Consultative Committee Inc 2,525 Jarrahdale Heritage Society (Incorporated) 6,496 Great Southern Community Housing Assn Inc 39,492 Jaycees Community Foundation Inc 522,729 Green Skills Inc 145,458 Jazz Club of WA Inc 1,496 Greenfields Family & Community Centre Inc 3,000 Jerramungup Occasional Childcare Association Inc 10,000 Greenhills Progress Association Inc 5,000 Jerramungup Shire Business Enterprise Centre Inc 12,740 Greenwood Village Playgroup Inc 3,000 Jewish Seniors Club (WA) 5,000 Grow Incorporated 11,521 Jigalong Community Inc 20,151 Guides Western Australia (Inc) 169,672 Joblink Enterprises Inc 99,000 Gurlongga Njininj Association Inc 10,800 Joondalup Child Care Centre Inc 10,000 Gwelup Community Corner Inc 3,000 Joondalup Youth Support Services Inc 27,828 Gwynne Park Primary School P & C Assn Inc - Education 5,000 Joongari House/Wyndham Family Support Inc 15,390 Support Centre June OConnor Centre Incorporated 10,751 HACC Training Brokerage Inc 2,000 Jurien Bay Progress and Tourism Association Inc 1,100 Haemophilia Foundation Western Australia Inc 3,365 Juvenile Diabetes Foundation International - Perth Chapter 8,400 Harman Street Playgroup 3,000 Kalamunda Community Care Inc 18,570 Harvey Health and Community Services Group Inc 5,000 Kalamunda District Bridge Club Inc 4,742 Harvey Mainstreet (Inc.) 12,623 Kalamunda Playgroup Inc 2,000 Headquarters Youth Recreational Cultural and Arts Inc 160,807 Kalannie Community Telecentre Inc 2,861 Headwest - Head Injured Society of W.A. (Inc.) 1,157 Kalgoorlie Boulder Volunteer Centre Incorporated 5,000 Health Agencies Of The Yilgarn Inc 1,571 Kalgoorlie-Boulder Business Development Centre Inc 34,389 Heart Kids (W.A.) Inc 4,200 Kallaroo Community Kindergarten Inc 3,000 Hedland Community Living Association Inc 6,055 Kalumburu Aboriginal Corporation Inc 450,000

Page 84 of 93 Page 85 of 93 Direct Grants Direct Grants Annual Report 2003

Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted

Kambalda Child Care Committee Inc 5,368 Local Government Community Services Assn of W.A. Inc 13,560 Kambalda East Playgroup 1,393 Lockridge Community Group Incorporated 53,192 Karalundi Aboriginal Education Centre (Inc) 30,000 Loftus Community Centre Association Inc 15,437 Karratha Emergency Relief Organisation 5,000 Lone Parent Family Support Service - Birthright Incorporated 7,214 Katanning Historical Society Inc 2,095 Louisa Downs Pastoral Aboriginal Corporation 204,000 Katanning Regional Emergency Accommodation Centre Inc 3,052 Lower Great Southern Community Living Assn Inc 5,498 Katanning Toy Library Inc 3,050 Lucy Saw Centre Association Inc 41,951 Katharine Susannah Prichard Foundation Inc 9,993 Lupus Group of Western Australia Inc 5,093 Kellerberrin Care of the Aged Committee Inc 11,963 Lynwood-Ferndale Playgroup Inc 3,000 Kidlink Early Intervention Program Inc 24,650 Maamba Aboriginal Corporation 20,445 Kids Camps Inc 10,000 Machinery Preservation Club of Western Australia Inc 10,000 Kimberley Aboriginal Law and Culture Centre (Aboriginal 38,968 Malleefowl Preservation Group Inc 31,923 Corporation) Maltese Association of Western Australia Inc 87,756 Kimberley Association of the Deaf and Hard of Hearing Inc 5,000 Mamabulanjin Aboriginal Corporation Inc 161,350 Kimberley Land Council Aboriginal Corporation 45,714 Mandurah City Choral Society Inc 1,160 Kimberley Performing Arts Council Inc 18,950 Mandurah Disabled Support and Recreational Respite Inc 1,400 Kimberley Personnel Inc 100,000 Mandurah Enterprise Centre Management Committee Inc 47,600 Kimberley Stolen Generation Aboriginal Corporation Inc 18,000 Mandurah Home and Community Care Incorporated 139,186 Kingfisher Park Family Centre Inc 19,006 Mandurah Joblink Inc. 110,000 Kira Incorporated 1,276 Mandurah Murray Emergency Relief Fund Inc 46,258 Kojonup Southern Singers 3,989 Mandurah Parkland Village Residents Association Inc 2,848 Korea and South East Asia Veterans Association (WA Branch) 2,410 Mandurah Performing Arts Incorporated 14,000 Inc Mandurah Water Rescue Group Inc 22,500 Kukerin Playgroup Inc 3,000 Maniana Community Kindergarten Inc 3,000 Kulin Kids Club Inc 3,000 Manjimup Chamber of Commerce and Industry Inc 5,000 Kununurra Neighbourhood House Incorporated 4,040 Manjimup Family Centre Inc 5,000 Kununurra Progress Association Incorporated 10,000 Marangaroo Family Centre Inc 4,769 Kurnangki Aboriginal Community 75,901 Marangaroo Playgroup Inc 3,000 Kuwinywardu Aboriginal Resource Unit Aboriginal Corp Inc 6,168 Margaret River Arts Council Inc 15,000 Kwinana Heritage Group Inc 10,000 Margaret River Choral Group 1,977 Kwinana Rockingham Emergency Relief Organisation Inc 18,000 Margaret River Community Resource Centre Inc 3,000 L.A.M.P. (Inc) 2,823 Margaret River Enterprise Centre Inc. 15,000 La Djardarr Bay Aboriginal Corporation Inc 32,500 Margaret River Regional Environment Centre Inc 5,000 Lake Clifton Progress and Sporting Assn Inc 145,000 Margaret River Volunteer Sea Search and Rescue Group Inc 4,145 Lake Grace Development Association Inc 19,532 Marnin Bowa Dumbara Aboriginal Corp Inc - Derby Family 87,638 Lakes Christian Life Centre Inc 239,295 Healing Centre Lancelin & Coastal Districts Resource & Telecentre Inc 19,431 Marnin Bowa Dumbara Aboriginal Corporation Inc 8,963 Landsdale Family Support Association (Incorporated) 20,920 Marninwarntikura Fitzroy Womens Resource Centre (Aboriginal 1,775 Latin American Cultural Assn (LACA) Inc 26,000 Corporation) Laverton Leonora Cross Cultural Assn Inc 47,759 Mary Smith Night Shelter Assn (Inc) 2,000 Learning and Attentional Disorders Society of WA Inc 8,000 Mater Christi Playgroup Inc 3,000 Learning Centre Link Inc 12,708 Mawarnkarra Health Service Aboriginal Corporation - 2,056 Roebourne Safe House Leederville Community Action Group Inc 10,000 Maylands Autumn Club Inc 1,825 Leeuwin Ocean Adventure Foundation Limited 12,500 Maylands Historical Society Inc 3,363 Life Plan Recreation and Leisure Association Inc 2,780 McFarleane House Learning Centre Inc 9,000 Lions Club of Dianella Inc 1,500 Medina Aboriginal Cultural Group Inc 13,955 Lions Club of Ocean Reef Inc 2,532 Meela Child Care Centre Inc 10,000 Lions Save Sight Foundation WA Inc 53,850 Meerilinga Young Childrens Services Inc - Stronger Families 6,504 Living Stone Foundation Inc 211,682 Aboriginal Parenting Program

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Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted

Melville AFA Brass Inc 5,000 Mundijong Arts & Crafts Inc 3,510 Melville Cares Inc 25,500 Mungullah Community Aboriginal Corporation Inc 1,320 Melville Community Arts Association Inc 9,922 Murray Districts Playgroup 1,300 Melville Theatre Company Inc 4,007 Murray Music and Drama Club Inc 2,000 Melville-East Ftle State Emergency Service Unit Inc 2,587 Muscular Dystrophy Assn of W.A. Inc 4,150 Men of The Trees Inc 54,771 Museums Australia Inc 44,500 Men of The Trees Inc - Peel Branch 3,000 My Place Foundation (Inc) 8,537 Mental Illness Fellowship of Western Australia Inc. - Lorikeet 8,726 Nannup Historical Society Inc. 2,525 Clubhouse Nannup Music Club Incorporated 7,104 Merredin and Districts Childcare and Play School Assn Inc 35,000 Nannup State Emergency Service Unit Inc 1,983 Mid West Family Support Association Inc 2,245 Nannup Tourist Association Inc 4,888 Midland Information Debt and Legal Advice Serv Inc 12,500 Nardine Wimmins Refuge Inc 11,853 Midland Job Link Inc 110,000 Narembeen Business Association 4,642 Midlands Individual and Family Support Assn Inc 1,500 Narembeen Historical Society (Inc) 20,000 Midwest Heritage Inc 5,000 Narembeen Land Conservation District Committee 1,818 Midwest Poultry Club Inc 900 Narembeen Numbats Occasional Child Care Association Inc 1,597 Milligan Foundation Housing Assn Inc 43,491 Narembeen Toy Library Inc 1,000 Mindarie Early Starter Program 3,000 Narrikup Amateur Theatre Society Inc 4,170 Mindarie Quinns Surf Life Saving Club Inc 150,000 Narrikup Bushfire Brigade 1,023 Mingenew-Irwin Group (Inc) 3,630 Narrogin Art Group Inc 2,213 Mission Australia Inc 508,761 Narrogin Cottage Homes Inc 18,852 Mission Australia-Youth Accommodation & Support Service Inc 107,314 Narrogin Independent Playgroup Inc 3,000 Moolanda Care and Learning Centre Incorporated 9,838 Narrogin Regional Womens Centre Association Inc 4,312 Moora Historical Society Incorporated 27,603 Narrogin Spring Festival Inc 4,000 Moora Telecentre Inc 10,805 NASCHA Inc 4,500 Moora Toy Library Inc 2,000 National Assn For The Prev of Child Abuse and Neglect WA Inc 4,950 Moora Youth Group Committee Inc 4,573 National Heart Foundation of Aust Inc - WA Division 250,000 Moorditch Gurlonga Association Inc - Moorditch Koolaak 23,383 National Trust of Australia (WA) - Israelite Bay Esperance 80,345 Moorditch Gurlongga Association Inc 26,091 National Trust of Australia (WA) - No.4 Pump Station Merredin 25,892 Morangup Playgroup 3,075 Naturaliste Volunteer Sea Rescue Group Inc 1,027 Mosaic Family Support Services Inc 750 Nedlands Playgroup (Inc) 3,000 Mosman Park Arts Foundation 6,500 Nedlands Toy Library Inc 3,000 Mosman Park Playgroup 1,500 NEEDAC Ltd 5,000 Motor Neurone Disease Assn of Western Australia Inc 32,421 Neergabby Community Association Inc 22,130 Mugarinya Community Association Inc 64,449 Network Family Support (W.A.) Inc 4,712 Mukinbudin Planning and Development Group (Inc) 1,515 Neurological Council of Western Australia (Inc) 24,420 Mukinbudin Telecentre (Inc) 17,735 New Beginning Life Centre Inc 21,769 Mukinbudin Telecentre Inc - Mukinbudin Occasional Care 10,000 New Life Welfare (WA) Inc 15,000 Mullewa Employment and Enterprise Development Aboriginal 63,187 Newdegate Telecentre Inc 16,727 Corporation Newman Employment Task Force Inc 91,500 Multicultural Services Centre of Western Australia Inc 56,590 Newman Womens Shelter Inc 2,311 Multiple Sclerosis Society of WA Inc 178,188 Ngaanyatjarra Council Aboriginal Corp Inc 69,304 Munda Biddi Trail Foundation Inc 50,000 Ngala Incorporated 175,083 Mundarda Child Care Centre Inc 9,964 Ngaringga Ngurra Aboriginal Corporation 1,354 Mundaring and Hills Historical Society Inc 15,000 Ngnowar-Aerwah Aboriginal Corporation Inc 95,002 Mundaring Arts Centre Inc 3,050 Ngunga Womens Group Aboriginal Corp 1,775 Mundaring Performing Arts Society Inc 3,582 Ngurawaana Group Aboriginal Corporation Inc 16,750 Mundaring State Emergency Service Unit (Inc.) 2,159 Nightingale Chorale Incorporated 3,443 Mundaring Toy Library Inc 3,000

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Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted

Nindilingarri Cultural Health Services Inc - Guwardi Ngadu Frail 39,213 Peel Community Living Inc 7,500 Aged Hostel Peel Trails Group Inc 15,000 Nirvana Social Club Inc 4,817 Peel Training and Employment (Inc) 60,000 Nollamara Autumn Club Inc 3,150 Peel Volunteer Referral Agency Incorporated 5,644 North Coast Probus Club Inc 1,725 Peel/South West Division of General Practice Ltd 90,899 North Dandalup Bush Fire Brigade 435 Perenjori Telecommunications and Res Ctr Inc 30,000 North Dandalup Parents and Citizens Association Inc 2,000 Perenjori Tourist & Museum Committee 3,622 North Perth Playgroup Inc 5,000 Person to Person: Citizen Advocacy Eastern Suburbs Inc 12,221 Northam and Districts Historical Society Inc 5,084 Perth Central Coastal Division of General Practice Ltd 14,878 Northam District State Emergency Service Unit Inc 13,518 Perth Christian Life Centre Inc 6,930 Northam Senior Citizens Social Club Inc 4,861 Perth Concert Band Inc 2,020 Northampton Community Toy Library Inc 3,100 Perth Diocesan Trustees - Anglican Diocese of Perth Parish 6,720 Northampton FESA Cadets 5,000 Rockingham and Safety Bay NorthCity Christian Centre Inc 6,000 Perth Diocesan Trustees - Anglican Parish of Applecross 8,589 Northcliffe Family Centre Incorporated 79,081 Perth Diocesan Trustees - Anglican Parish of Gosnells Welfare 13,400 & Community Services Northcliffe Pioneer Museum 4,000 Perth Diocesan Trustees - St Andrew’s Church Subiaco 40,895 Northern Interaction Support Association Inc 3,033 Perth Diocesan Trustees - St James Church Moora 9,597 Nulsen Haven Association (Inc) 74,155 Perth Diocesan Trustees - St John The Baptist Kellerberrin 5,800 Nyabing Playgroup 3,300 Perth Diocesan Trustees - St John The Baptist, Kalgoorlie 10,345 Nyabing Toy Library Inc 3,300 Perth Hebrew Congregation Inc - Ruth Landau Harp Child Care 10,000 Oakford Oldbury Community Association Incorporated 14,385 Centre (Gan Katan) Ocean Ridge Senior Citizens Club Inc 3,455 Perth Home Care Services Inc 2,000 Omoke Aboriginal Corporation Inc 5,378 Perth Inner City Youth Service Inc 2,500 One World Centre Inc 36,000 Perth PC Users Group Inc 5,000 Ongerup District Telecentre Inc - Ongerup Toy Library 3,050 Phillips Brook Catchment Group (Inc) 5,000 Ongerup Playgroup 1,160 Pilbara Arts, Crafts and Designs Aboriginal Corporation Inc 7,218 Onslow Employment Project Inc 87,500 Pilbara Community Legal Service Inc 9,021 Onslow Tourism and Progress Association Inc 8,886 Pilbara Homecare Inc 15,341 Options for People’s Accommodation and Lifestyles Inc 7,758 Pilbara Homecare Inc - Hedland House 38,377 Orana House Inc 12,656 Pilbara Homecare Inc - Milga Mia 77,083 Ord Land and Water Incorporated 9,300 Pilbara Individual & Family Support Assn Inc 1,500 Osborne Autumn Club Inc 1,955 Pingelly Telecentre and Resource Facility Inc 8,639 Outcare (Incorporated) 24,258 Pingelly Volunteer State Emergency Service Unit Inc 5,000 Oxfam Australia 4,922 Pinjarra Horse Festival Inc 10,000 Oz Concert Incorporated 45,000 Piyarli Yardi Aboriginal Corporation Inc 250,000 Paraburdoo & Tom Price Youth Support Assn Inc 18,000 Planned Individual Networks Inc. 106,890 Paraplegic-Quadriplegic Assn of W.A. (Inc) 70,729 Playgroup W.A. (Inc) 10,000 Parents without Partners in Australia (Western Australian 11,031 Polish Club General W.Sikorski Western Australia Inc 5,000 Region) Inc Port Denison Volunteer Sea Rescue Group Inc 2,544 Parish of Saints Apostles Peter and Paul Church - Russian 2,772 Orthodox Community School Port Hedland Tourist Bureau Incorporated 57,483 Parkerville Children’s Home 301,889 Port Walcott Voluntary Sea Rescue Group Inc 600 Parkinson’s Western Australia Inc 12,153 Portugese Cultural & Recreational Centre of WA Inc - Cockburn 20,000 Sounds 91.3cc fm Cty Radio Parks and Leisure Australia Inc 25,000 Portuguese Cultural and Recreational Centre of Western 59,365 Pat Thomas Memorial Cty House Inc 148,032 Australia Inc Patricia Giles Centre Inc 41,304 Preston Beach Progress Association Inc, 15,500 Paupiyala Tjarutja Aboriginal Corporation 119,080 Propelarts Inc 10,000 PBF (Australia) Ltd 7,647 ProSubi Ltd 5,000 Peaceful Bay Sea Rescue Group Inc 13,596 Protective Behaviours Association of W.A. Inc 10,715 Peel Community Campus Inc 1,000

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Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted

Ravensthorpe Regional Arts Council Inc 1,540 Rotary Club of Esperance Bay Inc 4,000 Republic of Vietnam Veterans Association of Western Australia 10,000 Rotary Club of Hillarys Incorporated 10,000 Inc Rotary Club of Mount Hawthorn 25,000 Reserve Protection Group Inc 6,000 Rotary Club of Nedlands Inc 2,790 Resource Unit for Children With Special Needs Incorporated 41,909 Rotary Residential College Inc 35,062 Restoration Inc 203,522 Rottnest Island Foundation Inc. 22,345 Returned & Services League of Australia WA Branch Inc - 7,308 Rottnest Voluntary Guides Association Inc 20,090 Donnybrook Royal Association of Justices of WA Inc - Stirling Wanneroo 2,682 Returned and Services League of Aust. WA Branch Inc 295,213 Branch Returned and Services League of Aust. WA Branch Inc - 82,320 Royal Kings Park Tennis Club (Inc) 82,487 Broome Royal Marines Assocation Western Australian Branch 2,767 Returned and Services League of Australia Ltd - Capel Sub 3,428 Branch Royal Perth Yacht Club of Western Australia Inc 81,579 Rhein-Donau Club Inc 10,000 Royal Western Australian Historical Society Inc 2,425 Richmond Fellowship of W.A. Inc 97,224 Rural Community Legal Service Incorporated 42,000 Richmond Fellowship of Western Australia - East Fremantle 98,444 Russian Ethnic Community and Youth Development Assoc 5,000 Rusichi Inc Riding for the Disabled Association of Western Australia Inc 98,752 Safecare Inc 78,452 River Conservation Society Inc 2,263 Safer WA Committees Executive Inc - VIP Plus Project 4,200 Rockingham and Districts Toy Library Inc 3,000 Safer WA Committees Executive Incorporated 174,392 Rockingham City Pipe Band Incorporated 5,000 Saints Care Ltd - The Homestead (Beldon) 53,498 Rockingham District Historical Society (Inc) 2,890 Saints Care Ltd - The Homestead (Kingsley) 19,273 Rockingham Regional Environment Centre (Inc) 6,150 Samoan Culture Group Inc 5,000 Rockingham Volunteer Sea Rescue Group Inc 2,575 Sandgropers Sunshine Toy Library Inc 3,000 Rockingham Womens Health and Information Assn Inc 58,639 Scarborough Church of Christ 5,000 Rockingham-Kwinana SES Unit Inc 7,817 Scarborough Toy Library 1,800 Rocky Bay Inc 72,941 Schizophrenia Fellowship (Albany and Districts) Inc 13,751 Roleystone Karragullen Seniors Club 2,400 Scitech Discovery Centre 133,652 Roman Catholic Archbishop of Perth - Anawim 40,629 Scottish Masonic Homes of WA Society Inc 3,296 Roman Catholic Archbishop of Perth - Basilica of St. Patrick 64,065 Fremantle Scout Association of Australia - Western Australian Branch 100,000 Roman Catholic Archbishop of Perth - Catholic Migrant Centre 3,404 Second Harvest (Australia) Inc - Langford Comunity Food 20,000 Centre Roman Catholic Archbishop of Perth - Father Brians Crisis 13,000 Care Centre Seniors Recreation Council of W.A. Inc 151,000 Roman Catholic Archbishop of Perth - i.d.entity.wa 25,577 Senses Foundation Incorporated 51,500 Roman Catholic Archbishop of Perth - St Patricks Community 9,000 Serbian Community Centre of WA Inc 98,232 Support Centre Serenity Lodge Inc 19,604 Roman Catholic Archdiocese of Perth - Sacred Heart Convent, 60,297 Share & Care Community Services Group Incorporated 34,486 Highgate Shark Bay Community Resource Centre Inc 2,948 Roman Catholic Bishop of Broome - Kununurra Wyndham 1,000 Parish Shark Bay Fishing Club Inc 1,691 Roman Catholic Bishop of Broome - Our Lady of the 18,504 Shelley Ladies Probus Club Incorporated 2,655 Assumption Kalumburu Shelter WA Inc 6,500 Roman Catholic Bishop of Broome - St Theresa’s Church Balgo 15,140 Shenton Park Playgroup Inc 3,000 Roman Catholic Bishop of Broome-Sacred Heart Church 78,145 Shire of Ashburton 300,000 Beagle Bay Shire of Augusta-Margaret River 159,365 Roman Catholic Bishop of Bunbury - Thomas Little Hall 7,311 Dardanup Shire of Beverley 41,946 Roman Catholic Bishop of Geraldton - Centacare Family 10,000 Shire of Boddington 30,230 Services Geraldton Shire of Boyup Brook 30,841 Roman Catholic Bishop of Geraldton - Centrecare Family 15,252 Shire of Bridgetown Greenbushes - Bridgetown State 6,125 Services - Carnarvon Emergency Service Roo Gully Wildlife Sanctuary Inc 4,620 Shire of Bridgetown-Greenbushes 77,090 Rotary Club of Dalkeith Inc 2,000 Shire of Broome - Kimberley Family Day Care Scheme 6,778

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Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted

Shire of Broomehill 20,948 Shire of Menzies 12,520 Shire of Bruce Rock 5,000 Shire of Moora 80,000 Shire of Busselton 250,000 Shire of Mount Magnet 5,000 Shire of Busselton - Friends of Peron Reserve 1,805 Shire of Mt Marshall 73,863 Shire of Busselton - Meelup Regional Park Management 20,225 Shire of Mullewa 13,076 Committee Shire of Mundaring - Darlington Vol. Bushfire Brigade Inc 8,259 Shire of Capel 15,000 Shire of Mundaring - Parkerville Hall 24,105 Shire of Carnarvon 106,297 Shire of Mundaring - Station Master’s House 7,245 Shire of Chapman Valley 9,815 Shire of Murray 21,605 Shire of Chittering 4,241 Shire of Nannup 53,827 Shire of Collie 8,002 Shire of Narrogin 2,600 Shire of Coolgardie 13,050 Shire of Northam 18,089 Shire of Coorow - Green Head Skate Park 20,000 Shire of Northam - Wundowie Resource Centre 25,000 Shire of Corrigin - Community Resource Centre 90,743 Shire of Northam - Wundowie Youth Advisory Council 18,505 Shire of Cranbrook 6,030 Shire of Northampton 29,910 Shire of Cranbrook - Central Volunteer Bushfire Brigade 2,492 Shire of Nungarin 5,760 Shire of Cuballing 3,849 Shire of Plantagenet 8,350 Shire of Cue 144,410 Shire of Quairading 12,929 Shire of Cunderdin - Cunderdin Museum 78,000 Shire of Ravensthorpe 8,653 Shire of Dalwallinu 13,000 Shire of Roebourne 36,623 Shire of Dardanup 258,046 Shire of Roebourne - Walkington Theatre 32,000 Shire of Denmark 35,336 Shire of Sandstone 20,345 Shire of Derby-West Kimberley 48,397 Shire of Serpentine-Jarrahdale - Oakford Volunteer Bush Fire 1,585 Shire of Donnybrook-Balingup - Mullalyup Bush Fire Brigade 9,000 Brigade Shire of Dowerin 4,435 Shire of Shark Bay 51,703 Shire of Dumbleyung 6,885 Shire of Shark Bay - Shark Bay Pastoral History Group 27,000 Shire of Dundas - Local Bushfire Brigades 1,820 Shire of Tambellup - Bush Fire Brigades 2,223 Shire of Esperance 10,000 Shire of Tammin 8,845 Shire of Esperance - Bay of Isles Leisure Centre Creche 2,611 Shire of Toodyay 48,660 Shire of Esperance - Condingup Bush Fire Brigade 5,370 Shire of Toodyay - Old Gaol Museum 8,827 Shire of Esperance - Esperance Bay Historical Society (Inc) 8,655 Shire of Upper Gascoyne 5,000 Shire of Esperance - Esperance Home and Community Care 112,979 Shire of Victoria Plains 43,198 Shire of Esperance - Six Mile Hill Urban Rural Bushfire Brigade 1,762 Shire of Wagin 12,342 Shire of Exmouth 39,925 Shire of Wandering 11,200 Shire of Gnowangerup 16,516 Shire of West Arthur 10,122 Shire of Goomalling 113,401 Shire of Westonia 47,515 Shire of Halls Creek 3,888 Shire of Wickepin 115,218 Shire of Harvey - Myalup Community Facility 100,000 Shire of Williams 20,405 Shire of Irwin 94,500 Shire of Williams - Project Implementation Officer Management 4,385 Committee Shire of Jerramungup 6,964 Shire of Williams - Tarwonga Vol Bushfire Brigade 2,351 Shire of Kalamunda 22,770 Shire of Wongan-Ballidu 22,263 Shire of Katanning 5,399 Shire of Wongan-Ballidu - Bushfire Brigades 1,794 Shire of Katanning - Katanning Bushfire Association 2,753 Shire of Woodanilling - Woodanilling Bush Fire Brigade 2,480 Shire of Koorda 21,082 Shire of Wyalkatchem 83,230 Shire of Kulin 27,215 Shire of Yilgarn 18,000 Shire of Lake Grace 25,943 Shire of York - Residency Museum York 5,308 Shire of Manjimup 455,577 Shire of York - York Town Hall 28,585 Shire of Manjimup - Manjimup/Deanmill Multi Use Heritage Trail 5,000 Committee Short Term Accommodation for Youth Inc 8,869

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Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted

Silver Chain Nursing Association (Inc) 24,000 Sundance Music Theatre Company Incorporated 8,550 Silver Threads Band 4,000 Sunshine Playgroup 3,300 Singleton Progress Association Inc 5,000 Surf Life Saving Western Australia Incorporated 7,500 Sir David Brand School Community Support P and C Assn Inc 10,000 Sussex St Community Law Service Inc 9,900 Sisters of St Joseph of the Sacred Heart (WA) Inc - Mary 97,352 Swan Emergency Accommodation Inc 7,000 MacKillop Centre Swan Friendship Club of Western Australia Inc 18,320 Smith Family Inc 1,479 Swan Valley Tourism Council Inc 2,048 Sorrento Surf Life Saving Club (Inc) 8,870 Swan Village of Care Inc 19,864 South City Housing (Inc) 30,000 Tambellup Telecentre Incorporated 19,231 South Fremantle Playgroup 1,000 Tammin Economy Shop Cooinda Assn Inc 2,000 South Lake Child Care Centre Inc 31,016 Technical Aid to the Disabled Western Australia Inc 61,199 South Metropolitan Migrant Resource Centre Inc 12,000 Teens Unlimited 5,000 South Metropolitan Youth Link (Inc) 113,300 Telethon Institute for Child Health Research 53,605 South of the River Japanese Playgroup 1,500 Temple David Congregation Inc 7,140 South Perth Learning Centre Inc 2,192 Tenants Advice Service Inc 60,351 South Trayning/Ninghan Catchment Group Inc 10,507 Therapy Focus Incorporated 321,156 South West Family Support Association Inc 20,688 Toodyay Friends of the River (Inc.) 1,204 South West Opportunities in Recreation for People with 2,500 Toodyay Land Conservation District Committee 999 Disabilities Torbay Agricultural Community Hall Inc 4,949 South West Refuge Inc 26,917 Torbay Catchment Group Inc 4,430 South West VCF Community Care Inc 6,583 Totally and Partially Disabled Veterans of W.A. Inc 5,000 South Yunderup-Ravenswood Bushfire Brigade 1,510 Town of Bassendean 19,118 Southcare (Incorporated) 35,178 Town of Bassendean - Bassendean Youth Service 2,173 Southern Aboriginal Corporation Inc - Marribank 13,409 Town of Bassendean - Wind in the Willows Childrens Centre 10,000 Southern Agcare Inc 7,107 Bassendean Southern Brook Community Association Inc 1,500 Town of Cambridge 19,143 Southern Communities Advocacy Legal and Education Service 5,000 Town of Claremont 2,254 Incorporated (SCALES) Town of Claremont - Claremont Museum 9,924 Southern Cross Quilters WA Branch 3,000 Town of East Fremantle 204,100 Southern Districts Support Assn Inc 1,500 Town of Kwinana - Kwinana Family Day Care Scheme 12,402 Southern Strutters 5,000 Town of Mosman Park 3,050 Southside Christian Centre AOG Inc - Bumblebees Playgroup 3,000 Town of Narrogin - HACC Services 121,685 Southside Playgroup Inc 3,000 Town of Port Hedland 78,000 Speak Easy Association of Western Australia (Inc) 60,122 Town of Port Hedland - Matt Dann Cultural Centre 28,500 Speech and Hearing Centre for Children WA (Inc) 360,000 Town of Port Hedland - Well Women’s Centre 275,000 Spina Bifida Association of Western Australia 344,000 Town of Victoria Park 32,030 Sport Aircraft Builders Club of W.A, Inc 15,000 Town of Vincent 21,900 Sportrec House Albany Association Inc 7,625 Trayning State Emergency Service Unit Inc 1,364 Spring-a-Long Toy Library Inc 2,969 Tuart Hill Community Kindergarten Inc 3,000 St Bartholomews House Inc 123,543 Two Rocks Blessing of the Fleet and Community Day (Inc) 9,500 St Francis Xavier Playgroup and Third Road Kindy Inc 2,646 United Greek Community of Western Australia Inc 2,484 St John Ambulance Australia-WA Ambulance Service Inc 1,689,038 United Way (WA) Inc - Gifts in Kind 6,496 St John of God Foundation Inc - Lighthouse Wilson 31,700 Uniting Church Council of Mission Trust Association - Frontier 50,364 St Marys Playgroup - Bunbury 1,500 Services St Vincent De Paul Society (WA) Incorporated 190,157 Uniting Church Council of Mission Trust Association - 8,331 Starick Services Inc 5,000 Murchison Financial Advocacy Services Stirling Business Enterprise Centre Inc 4,099 Uniting Church in Australia Property Trust (WA) - Armadale 10,000 Parish Mission (Kids United) Stirling Skills Training Inc - Fremantle Branch 27,930 Uniting Church in Australia Property Trust (WA) - Crossroads 13,838 Stirling Street Arts Centre Management Committee Inc 3,650 Western Australia Sudbury Community House Association Inc 8,000

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Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted Organisation Name Amount Granted

Uniting Church in Australia Property Trust (WA) - Girrawheen 3,890 WA State Literature Centre Inc. 2,468 Uniting Church Parish Mission WA Telecentre Kununurra Inc 89,500 Uniting Church in Australia Property Trust (WA) - Mofflyn 75,000 WA Young Guns - a Showcase of Country Music Inc. 5,000 Uniting Church in Australia Property Trust (WA) - Mundaring 5,155 Wagin Frail Aged Inc 99,783 Uniting Church Waikiki Community and Family Centre Inc 11,346 Uniting Church in Australia Property Trust (WA) - Uniting Aid 14,625 Wallatin Wildlife and Landcare (Inc) 15,727 Uniting Church in Australia Property Trust (WA) - Wesley 42,619 Church Fremantle Wandering Telecentre Inc 11,795 Uniting Church in Australia Property Trust (WA) - Wesley 46,977 Wandering Volunteer Bushfire Brigade 1,210 Mission Fremantle Wangka Maya Pilbara Aboriginal Language Centre (Aboriginal 9,000 Uniting Church in Australia Property Trust (WA) - Wesley 20,548 Corporation) Mission Perth Wanneroo Senior Citizens’s Club Inc 2,000 Uniting Church in Australia Property Trust (WA) - Wesley St 8,070 Wanslea Family Services Incorporated 2,000 Pauls Kalgoorlie Wanslea Family Services Incorporated - Great Southern 270,135 Uniting Church in Australia Property Trust - Uniting Church 5,000 Drop In Centre Mandurah War Widows Guild of Australia Western Australia Inc - Forsyth 58,317 Gardens Retirement Village University of the Third Age, the University of Western Australia 2,604 Inc Waratah Christian Community Inc - Falcon Family Centre 3,600 UWA-Berndt Museum of Anthropology 14,483 Waratah Support Centre (South West Region) Inc 31,869 UWA-Callaway Centre 3,767 Warmun Community (Turkey Creek) Inc 18,691 UWA-Centre for Western Australian History 115,551 Waroona CALM Bushrangers Cadets 4,630 UWA-Cooperative Research Centre 5,000 Waroona Community Centre Inc 12,121 UWA-Medical Research 4,005,000 Waroona Community Marketing Inc 3,200 UWA-School of Plant Biology 116,150 Warren Art and Craft Group Incorporated 2,500 Valued Independent People Inc 25,000 Welshpool Business Enterprise Centre Inc 16,952 Victoria Park Centre for the Arts Inc. 4,985 Wembley Toy Library Incorporated 3,000 Victoria Park Jobmate Inc 116,000 West Arthur Land Conservation District Committee 5,786 Victoria Park Youth Accommodation (Inc.) 53,079 West Coast Steiner School Parents Association - Playgroup 1,621 Vietnam Veterans Federation - WA Lincs Inc 16,143 West Kimberley Family Support Association Inc 1,290 Vietnamese Community in W.A. Incorporated 1,333 West Stirling Neighbourhood House Inc 2,000 Vietnamese Culture Association Incorporated 4,400 West Winds Concert Band Inc 3,300 Vietnamese Seniors Association WA Inc 4,545 WestAus Crisis and Welfare Services Inc 10,329 Villa Dalmacia Association Inc 284,180 WESTCARE Inc - WESTCARE Accommodation Services 37,619 Vista House Playgroup Incorporated 3,000 Western Australian Agribusiness Development Centre Inc 28,000 Viva La Musica 4,048 Western Australian AIDS Council (Inc) 121,350 Voices of the Vasse 1,757 Western Australian Association for Mental Health Inc 12,000 Volunteer Centre of Western Australia Inc 63,748 Western Australian Association of Polish Women Inc 3,000 Volunteer Home Support Inc 44,396 Western Australian Association of the Deaf Incorporated 5,000 Volunteer South West Incorporated 4,350 Western Australian Community Broadcasting Association Inc 38,180 Volunteer Task Force Inc - Wanneroo 41,715 Western Australian Council of Social Service Incorporated 183,366 (WACOSS) W.A. Baptist Hospital & Homes Trust Inc. - Geraldton 9,000 Western Australian Deaf Society (Inc) 35,388 W.A. Blue Sky Inc 1,800 Western Australian Genealogical Society Inc 1,535 W.A. Council on Addictions - Cyrenian House 229,109 Western Australian Health Care Museum Association (Inc) 3,073 W.A. Croatian Community Centre Inc 5,000 Western Australian Recreational and Sportfishing Council Inc 41,649 W.A. Deaf Recreation Club Inc 1,457 Western Australian School Canteen Assoc Inc 3,960 W.A. Model Aircraft Sports Centre Inc 3,831 Western Australian Sports Federation Inc 3,000 W.A. Pipe Band Assn Inc 1,700 Western Australian State Library Custodians Inc 250,000 WA Air Training Corps Gliding Wing Inc 20,784 Western Institute of Self Help (W.I.S.H) Inc 19,685 WA Baptist Hospital & Homes Trust Inc - Manjimup 47,000 Western Swan Community Living Association Inc. 1,596 WA Conference of the Seventh Day Adventist Church Red 4,630 Cross Cadets (Carmel) Wetlands Conservation Society of WA Inc 3,646 Wheatbelt Agcare Community Support Services Inc 7,430

Page 90 of 93 Page 91 of 93 Direct Grants Glossary Annual Report 2003

Organisation Name Amount Granted Organisation Name Amount Granted

Whitford Senior Citizens Club Inc 3,787 Yanchep/Two Rocks Senior Citizens Association 3,492 Whitfords Volunteer Sea Rescue Group Inc 9,000 Yangebup Family Centre Inc 3,000 Wildflower Society of Western Australia (Inc) 5,700 Yangebup Playgroup Inc 3,000 Willetton Child Care Association Inc 7,515 Yarra Yarra Catchment Management Group Inc 66,171 Wilson Inlet Catchment Committee Inc 2,040 Yenyenning Lakes Management Group (Inc.) 20,000 Wirrabirra Child Care Centre Inc 9,332 Young Mens Christian Association of Newman Inc 2,311 Wirraka Maya Health Service Aboriginal Corp 18,900 Young Mens Christian Association of Perth Inc (YMCA) 1,000 Wirrimanu Aboriginal Corporation 11,413 Youth Affairs Council of Western Australia (YACWA) 15,000 Womens Health Care Association Inc 12,999 Youth Charities Trust Inc 277,083 Womens Refuge Group of WA Inc 14,855 Youth Legal Service Inc 92,560 Wongan Hills & Districts Museum & Historical Society 5,000 Youth Media Society of Western Australia Incorporated 20,000 Wongatha Wonganarra Aboriginal Corporation Inc 1,498 Yulella Fabrications Aboriginal Corporation Inc 8,553 Wonthella House Inc 12,247 Zephyros Dance Group of the Cypriot Community of WA 4,746 Woodgamia CDEP Aboriginal Corporation Inc 25,593 Zonta Club of Perth Northern Suburbs Inc 4,292 Woodturners Association of Western Australia (Inc) 5,000 Zonta House Refuge Assn Inc 20,866 Woolah Aboriginal Corporation 34,195 Total Direct Grants 47,059,545 Wooroloo Brook Land Conservation District Committee 14,528 Wooroloo Playgroup Association Inc 3,000 The following amounts were recommended by the Commission approved by the Minister in accordance with sections 22(d)(l) and 22(d)(ii) of the World Wide Fund for Nature Australia 118,235 Lotteries Commission Act 1990 (as amended). Wundowie Progress Association Inc 7,747 UWA-Perth International Arts Festival 3,600,000 Wyalkatchem Cooperative Bulk Handling Agricultural Museum 6,568 ScreenWest Inc 700,000 Assn Inc Total 4,300,000 Yaandina Family Centre (Inc) 26,282

RECONCILIATION OF DIRECT GRANTS For the year ended 30 June 2003 2003 2002 $000s $000s

Allocations approved but not paid at 1 July 46,779 42,740

Less: Net adjustments to prior year grants 1,240 725 45,539 42,015 Add: Grants approved during the year 56,421 50,899

101,960 92,914

Less: Grants approved and written back during the year 146 78 101,814 92,836

Less: Payments made during the year 45,376 46,057

Grants approved but not paid at 30 June 56,437 46,779

Page 92 of 93 Page 93 of 93 Direct Grants Glossary Annual Report 2003

Organisation Name Amount Granted Organisation Name Amount Granted GLOSSARY

Add-on commission This is a commission payable to Lotterywest Retailers which is included in the price paid by players

Community Cultural This funding program includes our support for the Perth International Arts Festival and ScreenWest as well as a wide range of community festivals and celebrations

Community Sector Development A funding program aimed at further developing skills and quality of management of those working within the community sector

Community Support and Development This program includes funding for community buildings and facilities, employment and enterprise initiatives, emergency relief for those in financial crisis, support for emergency services and funding for medical research

Environment Funding under this program includes support for both the natural environment (conservation projects) and the preservation of our built heritage

Lotteries Houses Lotteries Houses are buildings which are purchased, constructed or refurbished by Lotterywest to house, usually, smaller community groups which could otherwise not afford their own office space. The houses are run by incorporated management committees and are encouraged to be independent and, as far as possible, self- sufficient

Net subscriptions These are subscriptions net of any prize liability

Priority Groups with Special Needs This funding program helps meet special needs in the community such as those of aboriginal people, families and children, young people, seniors and people with disabilities

Subscriptions These are the proceeds of sales of lottery products net of any add-on commission

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