Building a Better Western Australia Together Statement of Compliance
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2014 Annual Report Building a better Western Australia together Statement of compliance Hon. C J Barnett MEc MLA PREMIER In accordance with Section 63 of the Financial Management Act 2006, we submit to the Premier for information and presentation to Parliament, the Annual Report of the Lotteries Commission for the financial year ended 30 June 2014. The Annual Report has been prepared in accordance with the provisions of the Financial Management Act 2006 and Lotteries Commission Act 1990 (as amended). John Atkins Chairman Accountable Authority 21 August 2014 Andrea Hall Commissioner Accountable Authority 21 August 2014 Contents About Lotterywest 2 Our highlights 4 Chairman’s introduction 10 Chief Executive Officer’s report 12 Corporate social responsibility 28 Planning for our future 34 Products and services – Games 38 – Grants 46 Distribution – Grants 52 – Games 56 Communications and branding 60 Capacity 70 Governance and compliance 78 Financial statements 89 L-R: Noel, Lauren, Chad and Asher from Sales and Customer Services. Cover image: Perkins Institute of Medical Research. My Lotterywest: “Knowing that every ticket we sell helps to build a better Western Australia provides a great deal of satisfaction”. Chad, Sales and Customer Services 1 About Lotterywest Our vision Building a better Western Australia together. Our purpose To enhance the quality of life and wellbeing for all Western Australians through the funding and support we provide to our beneficiaries and by running our lottery business with excellence and integrity. Our values Lotterywest is an organisation committed to serving the community of Western Australia with excellence and integrity. In enacting these values, we recognise the diversity of our stakeholders and strive for an approach which balances their different needs and expectations. Four core values underpin all that we do: Rewarding Trusted We seek to ensure that the experience of We are honest, reliable and trustworthy. all those with whom we come into contact We conduct ourselves professionally with – players, grant seekers, business partners the highest standards of integrity and and the community as a whole, will be a excellence in all our business operations valued and rewarding one and that all will and in our relationships with all our be treated with courtesy and respect. stakeholders. Inspiring Engaging We motivate, encourage and inspire We actively seek relationships with all ourselves and others to achieve greater our stakeholders based on principles of things for the benefit of the community of mutual respect and strive to enhance the Western Australia. achievement of their goals and ours. L-R: Lucy, Kate and Nerreda from Grants and Community Development. 2 Lotterywest AnnualAnnual Report Report 2014 2014 My Lotterywest: “Going to work every day at Lotterywest is so rewarding as I really am helping the West Australian community by assisting them with their grant applications and ensuring together we have a great State to live, work and play!” Nerreda, Grants and Community Development 3 Highlights 2013/14 $797million Total sales $446.9 million Prizes to our winners $271.2 million Distributed to beneficiaries 4 Lotterywest Annual Report 2014 Product sales 2013/14 $330.9m $145.9m $147.6m $96.9m $60.2m $10.8m $3.6m $1.1m 5 Annual lottery sales 2010-14 $900 $800 $700 $600 $500 $400 $300 $200 $100 $701 $683 $763 $821 $797m Millions $0 2010 2011 2012 2013 2014 Our games Total sales of $797 million Decrease of $23.8 million (2.9%) on last financial year Total annual sales per adult of $397.11 6 Lotterywest Annual Report 2014 Annual Sales lottery sales 2010-14 per adultSales per2010-14 adult $500 $400 $300 $200 $100 $394 $376 $422 $424 $397 Dollars per adult $0 2010 2011 2012 2013 2014 Our distribution channels Retail outlets – 96% of total sales Play Online service – 4% of total sales 501 retail outlets selling all products – 39 sell only Scratch’n’Win products $62.6 million paid in commission to retailers $309,112 in additional reward payments to retailers through the ‘Lotteryworks Program’ (incentive program for achieving standards and sales targets) 7 Beneficiaries2010-14 $300 $250 $200 $150 $100 $50 $235 $239 $257 $274 $271m Millions $0 2010 2011 2012 2013 2014 A total of $271.2 million was distributed to the Western Australian community $117.4 million to the State’s health services and hospitals $14.7 million to Sport and Recreation $14.7 million to Culture and the Arts $124.5 million approved in Lotterywest direct grants $7.6 million to the University of Western Australia for the Perth International Arts Festival $7.6 million to ScreenWest for investment in the Western Australian screen industry $109.4 million approved as direct grants to not-for-profit and Local Government Authorities 1197 grants approved to 1017 different community organisations 8 Lotterywest AnnualAnnual Report Report 2014 2013 Community perceptions of WA residents are aware 99% of Lotterywest of population states that % Lotterywest cares about 72 WA community of WA residents perceive % Lotterywest as being a significant 80 contributor to our community 80% of WA residents are aware of our key lottery products of West Australians have participated in a % Lotterywest game in the last 3 months 72 (at the time of the survey completion in Sept 2013) people out of 10 state that Lotterywest provides an 7.5 enormous amount of value to the WA community of our players play more than one of our % products – the most favourite combination 80 is Saturday Lotto and Scratch’n’Win 9 My Lotterywest: “The opportunity to work with others to ‘build a better WA together’ inspires us all at Lotterywest every day”. John Atkins – Chairman 10 Lotterywest Annual Report 2014 Chairman’s introduction In a challenging environment for Lotterywest and all with whom we work, the last year has once again been one of great achievement. This report highlights these achievements This year saw the retirement from the and sets out some of the challenges that we Board of Ray Bennett. Ray has been a great and our partners have faced. contributor to the Board. His knowledge of the gaming industry and his wisdom and The environment for our retailers has not experience will be missed. been as buoyant as they would like, so our revenue, whilst strong has not reached the Stephen Carre has joined the Board levels we would like to see. and brings experience in Banking and Retail which I know will be of great benefit Our community partners are facing ever to Lotterywest. increasing demands on their resources. As a result the number and dollar amount of The coming year will be another year of grant applications have shown considerable change as our long standing CEO Jan growth, which has had to be managed. Stewart retires. I will say more about Jan’s outstanding contribution in next year’s In this sort of environment it is important that report. For now I would like to thank her, the organisation is focussed and dedicated my fellow Board members and all of the to a well-developed plan. I am very pleased team at Lotterywest for continuing to to be able to say that this year management make a real difference to the lives of all and the Board worked together to develop a Western Australians. new Strategic Plan to guide Lotterywest over the next five years. The plan identifies the I would also like to acknowledge the challenges and opportunities for us into the ongoing support of the Premier as future and provides a rigorous framework our Minister. for decision making and action. I would like to sincerely thank all who have been involved in the development of the plan. We have a number of significant projects underway which will be important elements in the implementation of our plan. We John Atkins continue to grow our relationships with Chairman the Community Sector in building a better WA together. The Retail Transformation Programme is now underway. We consider John Atkins at the North Cottesloe this will be a very important element to Surf Life Saving Club. growing sales in our retail network. 11 My Lotterywest: “Lotterywest is a place where for the past 26 years I have been priviledged to work and to lead. It is a place where dreams literally come true”. Jan Stewart – Chief Executive Officer Jan Stewart, Warden of the State War Memorial, with the RSL Sub Wardens of the Highgate Branch. 12 Lotterywest Annual Report 2014 Chief Executive Officer’s report ‘Building a better WA together’ Introduction This Annual Report describes the results we have achieved in the past year in The Lotteries Commission of Western working to achieve that vision, the sales we Australia was established in 1932 at the have generated, the contribution we have height of the Great Depression. The hope of made to our beneficiaries, as well as all the Government in setting up the Lotteries the other activities we need to undertake to Commission was that by offering a well- operate our business, the challenges we managed government authorised lottery, faced and will continue to face, and our which also would have a regulatory role in plans for the future. controlling illegal gambling, funds would be raised which would be directed to hospitals and to the many charities seeking to help the The Strategic Plan 2014-18 needy of that era. The new Strategic Plan has been based ‘A Proper Foundation – 1932-2008 – on a comprehensive review of the total A history of the Lotteries Commission of environment in which we operate in Western Australia’ by Sian Supski written for Western Australia for both the lottery the Commission’s 75th anniversary, records operations and for our role in supporting that the justification given by Minister John the community sector.