Annual Report Statement of Compliance

2012 Annual Report Statement of Compliance Hon. C J Barnett MEc MLA PrEMiEr Contents In accordance with Section 63 of the Financial Management Act 2006, we hereby submit to the Premier for information and 2 Our vision presentation to Parliament, the Annual 4 About Lotterywest Report of the Lotteries Commission for the – Our purpose financial year ended 30 June 2012. – Our values 6 Our highlights The Annual Report has been prepared in accordance with the provisions of the 11 Chairman’s Introduction Financial Management Act 2006 and 15 Chief Executive Officer’s Report the Lotteries Commission Act 1990 (as 29 Corporate Social Responsibility amended). 31 Planning for our future 35 Beneficiaries 55 Lottery Operations 70 Our People and Organisational Development Making 79 Reputation and Stakeholder Relations John Atkins 84 Business Framework Governance, compliance and technology Chairman 87 Board composition a difference Accountable Authority 20 August 2012 88 Executive Team 94 Financial statements 142 Lotterywest Grants list r ay Bennett Commissioner Accountable Authority Design: Spirit L-R: Faye and Pauline from 20 August 2012 Photography: Frances Andrijich, Terrace Photographers and Jason Thomas Grants and Community Development. 1 What’s our vision? We want to be a leader in building a better Western Australia L-R: Alice and Kristy from Grants and Community Development. 2 Lotterywest Annual Report 2012 3 Our purpose To enhance the quality of life and wellbeing Inspiring for all Western Australians through the funding and support we provide to our We motivate, encourage beneficiaries and by operating our lottery and inspire ourselves and business with excellence and integrity. others to achieve greater things for the benefit of Engaging Rewarding the community of Western Australia. We actively seek relationships with We seek to ensure that the all our stakeholders Our values experience of all those with whom based on principles we come into contact – players, Trusted of mutual respect and grant seekers, business partners strive to enhance the and the community as a whole will Lotterywest is an organisation committed to We are honest, reliable and achievement of their serving the community of Western Australia be a valued and rewarding one goals and ours. and that all will be treated with trustworthy. We conduct with excellence and integrity. courtesy and respect. ourselves professionally with the highest standards of integrity and excellence in all In enacting these values, we recognise the our business operations and diversity of interests of our stakeholders and in our relationships with all our seek to achieve a balance of approach which stakeholders. takes into account this diversity. It is our commitment that in all we do we strive to demonstrate our values. L-R: Tung, Andrea and Jude from Business Operations. 4 Lotterywest Annual Report 2012 5 Our highlights 2011/12 Total sales $763 Million 2011/12 Return to beneficiaries 2011/12 Winners shared $ $ 257 428 Million Million L-R: Larissa, Mark and Alisha from Business Operations. 6 Lotterywest Annual Report 2012 7 Our products $132.8 M $101.2 M $54.6 M $100.0 M $360.4 M $9.4 M $2.9 M $1.4 M 8 Lotterywest Annual Report 2012 9 Highlights Annual lottery sales Sales per adult Total return to beneficiaries $654.1 $724.8 $701.5 $683.3 M $762.7 $391.46 $416.61 $394.25 $375.71 $421.75 $205.5 $233.8 $234.8 $238.8 M $257.0 Millions Dollars per adult Millions $0 $100 $200 $300 $400 $500 $600 $700 $800 $0 $100 $200 $300 $400 $500 $0 $50 $100 $150 $200 $250 $300 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Our games Our beneficiaries • Total sales of $762.7 million • A total of $257.0 million was raised for the Western Australian community • Increase of $79.3 million (11.6%) on last financial year • $112.4 million returned to hospitals • Total annual sales per adult of $421.75 • $14.0 million returned to sports • $14.0 million returned to arts Our retailers • $116.5 million* given in the form of direct grants including – $5.5 million to the University of WA for the Perth International Arts Festival • 501 full service retail outlets – $5.5 million to ScreenWest for the support of the screen industry in WA • 47 Scratch’n’Win only retail outlets – $105.5 million distributed to charitable and community groups • $61.2 million paid in commission to retailers – 1304 Grants approved to 1044 different organisations • $164,000 in additional incentive payments to retailers * This does not include re-allocated funds or grants not totally used. Alec from Business Development. 10 Lotterywest Annual Report 2012 11 Chairman’s introduction Last year my message in the Annual Report described our vision as that of ‘making a profound difference to the lives of all Western Australians’. Chairman John Atkins It is a vision to which we remain committed in every aspect of the operations of Lotterywest. The economic and demographic landscape of our community Of course if we are to achieve our vision of making a profound is also changing rapidly. This has significant implications not difference to our community, the business must also be well only for the lottery business but for society as a whole and the run. The Board is responsible for the overall governance of organisations which Lotterywest seeks to support through our Lotterywest and for ensuring that the business is prudently and work with them. efficiently managed. This year my fellow Board members and I, together with the staff of Lotterywest, are pleased to announce This year the Board has worked with the management team that 2012 was a record year for sales and that a record amount to ensure we are well prepared for the future. This report was returned to our beneficiaries. documents our activities, the outcomes which Lotterywest achieved in the past year, and sets the scene for our focus for We are pleased that in a recent Parliamentary debate on a the year ahead. relatively minor amendment to the Lotteries Commission Act, speakers from both sides positively affirmed the work of I am grateful to have the privilege of leading a very competent Lotterywest and expressed their belief that the structure of and committed Board. This year in March we said farewell to Lotterywest as an organisation – which is in effect owned by one of our longest serving Board members, Roger Lewis, after the people of Western Australia and whose primary mission is 10 years of exemplary service to Lotterywest. Colin Campbell- to raise funds for important causes in the community – must be Fraser completed his term in December last year after four retained for this State. years of enthusiastic and dedicated service. I would like to place on record my personal thanks to both these gentlemen and to The gambling industry of which Lotterywest is a part, albeit at all the Board. the ‘softer’ end of the continuum, has grown rapidly in recent years. Technological development has enabled interactive Two new Board members were welcomed – Garry Trinder in gambling and sports betting to be accessible to anyone with a December 2011 and Andrea Hall in March 2012. We look computer or, more recently, a mobile device. forward to their contribution in the years ahead. I thank the staff for another year of hard work and great achievement. Of course if we are Finally, I thank the Premier as Minister for Lotterywest for his continued enthusiastic support and guidance over the past year. to achieve our vision of making a profound difference to our community, the business must also be well run. John Atkins Teagan at West Australian Ballet’s Chairman Community Matinee. 12 Lotterywest Annual Report 2012 13 Chief Executive Officer’s Report This December marks the 80th anniversary of the passing of the first Act of Parliament establishing the Lotteries Commission of Western Australia. The Commission was set Chief Executive Officer Jan Stewart up to operate a state-authorised lottery and to distribute the money raised to hospitals and charitable and community groups. The Government of the day had considerable reservations about We adopted the ‘balanced this decision as evidenced by the speech by the Hon Bill Scanlon scorecard’ approach to in introducing the Bill. He and his fellow MPs took the bold step of establishing a State lottery only because the benefit of raising reporting a number of years money for hospitals and people in need could outweigh any ago, which recognises the need possible harm. They expected that the new Commission which to report not only on financial would be appointed to oversee the Lottery would ensure that aspects of our performance any negative consequences would be kept to a minimum. but on the impact on all The principle of operating a lottery responsibly in order to stakeholder groups and on raise the optimal amount of revenue for the benefit of the the environment. community as was the intention of those establishing Lotterywest in the 1930s continues to be the guiding principle of Lotterywest today. This is expressed in our vision statement – to be a leader in building a better Western Australia – and is underpinned by In the previous two years, although we were able to achieve the principles of social responsibility against which we report our targets for total return to our beneficiaries by the prudent all aspects of our performance. We adopted the ‘balanced use of reserves, we did not reach our sales targets. While retail scorecard’ approach to reporting a number of years ago, which conditions contributed to some extent, the primary factor in recognises the need to report not only on financial aspects of the negative growth in those years was largely the absence of our performance but on the impact on all stakeholder groups significant jackpots in our two jackpotting games – OZ Lotto and on the environment.

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