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Annual Report 2001 Annual Report 2001 LOTTERIES COMMISSION ANNUAL REPORT 2001 For further information, please contact: Jan Stewart Chief Executive Officer Postal Address: Lotteries Commission 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 Email: [email protected] Internet: www.lottery.wa.gov.au Page 2 LOTTERIES COMMISSION ANNUAL REPORT 2001 TABLE OF CONTENTS STATEMENT OF COMPLIA NCE 8 WHO WE ARE 9 WHAT WE DO 9 WHAT WE AIM FOR 9 HIGHLIGHTS OF THE YEAR 10 WHERE THE MONEY CAME FROM….AND WHERE IT WENT 11 PERFORMANCE AT A GLANCE 12 CEO’S REPORT 14 ENABLING LEGISLATION 19 OUR LOTTERY BUSINESS 20 Lotto Products 20 Saturday Lotto 20 OZ Lotto 21 Powerball Lotto 22 Scratch’n’Win 23 Other Products 24 Our retailers 25 Training initiatives 25 Rewarding Performance 26 Our Lotteries Customers 26 Our Marketing Processes 27 Marketing initiatives 27 Market Research 27 Relationship Marketing 28 OUR SUPPORT FOR OUR COMMUNITY 29 Our Support for Hospitals and Public Health Services 29 Page 3 LOTTERIES COMMISSION ANNUAL REPORT 2001 TABLE OF CONTENTS Our support for The arts 30 Our support for Sports 30 Our support for the Perth International Arts Festival and the Western Australian Film Industry 31 Our support for the Western Australian Film Industry 32 Our Grant Applicants 34 Direct Grants, Our support for the Community 34 Direct Grant Initiatives 35 Our Direct Grant Processes 38 Business and Community 38 Policy and Process Initiatives 38 New Grant Program Initiatives 40 OUR PEOPLE AND ENVIRONMENT 41 Our Working Environment 41 Training and Development - People 2003 42 Staff Statistics 44 Workplace Reform and the commission’s Business Improvement & Remuneration Plan 46 Training and Development 46 Staff Induction 46 Occupational Health Safety and Welfare 46 Worker’s Compensation and Rehabilitation 46 Public Sector Standards 46 Code of Conduct 47 Equal Employment Opportunity 47 Staffing Policies 47 Industrial Relations 47 OUR ORGANISATION 48 Board of Commissioners 49 Audit Committee 50 Page 4 LOTTERIES COMMISSION ANNUAL REPORT 2001 TABLE OF CONTENTS Advisory Committees and Technical Panels 51 Retailers Consultative Panel 52 Legislation Impacting on the Lotteries Commission’s Activities 52 Ministerial Directives 53 Our Investment in the Future 53 Capital Projects Completed 53 Other Technology Projects 54 Operations 54 Communicating with our Stakeholders 55 Public Relations and Corporate Communications 55 Strengthening our Corporate Brand 56 Lotteries Winners 56 Strategic & Business Planning 57 Business Continuity Planning 58 Compliance with Government Reporting Policies 58 Outsourcing 58 Freedom of Information 59 Publications Available to the Public 59 Pricing Policies on Outputs 60 Contracts with Senior Officers 60 Gaming Audit 60 People with a Disability 60 State Government Plan for Young People 2000-2003 60 Government Plan for Women 61 Compliance with Electoral Act 1907 62 Compliance with Public Sector Management Act s.31(1) 62 STRATEGIC PLAN 2000 -2003, PERFORMANCE MEASURES 64 OUTPUT SUMMARY TABLE S 66 Outcome Number 1 – Lottery Products 66 Outcome Number 2 – Community Funding 68 CERTIFICATION OF PERFORMANCE INDICATORS 70 AUDITOR GENERAL’S OPINION ON PERFORMANCE INDICATORS 71 Page 5 LOTTERIES COMMISSION ANNUAL REPORT 2001 TABLE OF CONTENTS KEY PERFORMANCE INDICATORS (AUDITED) 72 Key Performance Indicator Tables (audited) 73 ANNUAL ACCOUNTS 75 AUDITOR GENERAL’S OPINION ON FINANCIAL STATEMENTS 76 STATEMENT OF FINANCI AL PERFORMANCE 77 STATEMENT OF FINANCI AL POSITION 78 STATEMENT OF CASH FL OWS 79 NOTES TO THE FINANCIAL STATEMENTS 80 1. Significant Accounting Policies 80 2. Trading Profit 84 3. Forfeited Prizes 85 4. Retailer Fees 85 5. Player Registration Service 86 6. Net Profit or Loss on Disposal of Non -current Assets 86 7. Other Operating Revenue 86 8. Remuneration of Auditor 87 9. Building and Facility management 87 10. Corporate management 87 11. Gaming System management 88 12. Non-Gaming System management 88 13. Product management 88 14. Retail Network management 89 15. Depreciation 89 16. Funding Management 89 17. Community Funding 91 Page 6 LOTTERIES COMMISSION ANNUAL REPORT 2001 TABLE OF CONTENTS 18. Other Financial Assets 92 19. Inventories 92 20. Receivables 92 21. Work in Progress 93 22. Property, Plant & Equipment 93 23. Payables 94 24. Provisions 95 25. Equity 96 26. Commitments for Expenditure 96 27. Notes to the Statement of Cash Flows 97 28. Explanatory Statement 99 29. Financial Instruments 102 30. Remuneration and Retirement Benefits of Members of the Accountable Authority and Senior Officers 103 31. Supplementary Information 104 32. Output Information 105 PUBLICATION OF BUDGET 106 FIVE YEAR SUMMARY OF FINANCIAL DATA 109 DIRECT GRANTS 110 Page 7 LOTTERIES COMMISSION ANNUAL REPORT 2001 REPORT ON OPERATIONS STATEMENT OF COMPLIA NCE For the Year Ended 30 June 2001 HON. NICK GRIFFITHS LLB MLC MINISTER FOR RACING AND GAMING; GOVERNMENT ENTERPRISES; GOLDFIELDS – ESPERANCE; 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 2001. 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 CAMPBELL Chairman of Accountable Authority 28 August 2001 ROGER LEWIS Commissioner of Accountable Authority 28 August 2001 Page 8 LOTTERIES COMMISSION ANNUAL REPORT 2001 REPORT ON OPERATIONS WHO WE ARE The Lotteries Commission of Western Australia, established under the Lotteries Commission Act 1990 (as amended) (the Act)), is a statutory authority responsible for selling lottery games and distributing the profits for the benefit of the Western Australian community. WHAT WE DO Through a State-wide network of lottery Retailers the Lotteries Commission sells and markets a variety of lottery games, namely Lotto (Saturday Lotto, OZ Lotto, Powerball Lotto and Super 66), Scratch’n'Win instant lottery tickets, Cash 3 and Soccer Pools. The profits from the sale of lottery products are returned to the community in various ways according to the provisions of the Lotteries Commission Act 1990 (as amended) (see Enabling Legislation), including, via State Treasury, for the support of public health services, and for arts and sports organisations. The Lotteries Commission also distributes directly a significant proportion of the profits from lottery sales through grant funding programs, which we administer throughout our Community Funding section. WHAT WE AIM FOR The Lotteries Commission fulfils the objectives of the Lotteries Commission Act and operates in accordance with relevant legislation, Government policy and ethical standards. Our Statement of Strategic Intent states that: “Our purpose is to provide funds and support to the community of Western Australia through excellence and integrity in our lottery business. In order to achieve this we - ?? perform to the highest ethical, professional and commercial standards ?? work in partnership with others who are committed to strengthening and building community life ?? develop productive working relationships with our business partners ?? create a corporate culture which encourages the unique contribution of each person. We aim to be recognised as a key corporate citizen of Western Australia and a leader in the global lottery industry and all our areas of business.” Page 9 LOTTERIES COMMISSION ANNUAL REPORT 2001 REPORT ON OPERATIONS HIGHLIGHTS OF THE YEAR Our Games ?? The Commission achieved record sales of $455.2 million ?? Western Australia recorded Australia’s highest per capita sales of Saturday Lotto, Oz Lotto, Powerball Lotto and Super 66 ?? The Powerball $30 million jackpot generated sales of $7.3 million ?? Pyramids, a $3 bingo style game, was launched and contributed $2.7 million in sales in just over 7 weeks ?? 25 game Slikpiks, launched in March 2001, quickly became one of the most popular playing options for Lotto players ?? PRO:SYS, our new gaming system, was successfully installed as the platform for our gaming business Our Contribution to the Community ?? A record $134.1 million in Lotteries funding was approved for the Western Australian community ?? Distributed our half billionth dollar to the community of Western Australia ?? Record amounts were provided for hospitals ($71.4 million), sports and arts ($8.9 million each) ?? 1698 direct grants totalling $46.8 million were provided to community groups around the State and to the Perth International Arts Festival and the Western Australian film industry ?? Lotteries support for the WA film industry totalled $3.3 million, an increase of in excess of $1.3 million over the previous year ?? Lotteries funding, of almost $0.5 million ensured that the International Year of Volunteers was appropriately celebrated ?? A grant of $0.35 million to the Friends of the Art Gallery helped bring The Monet & Japan exhibition to Perth audiences ?? A “Grants Guide” was added to the Commission’s website to provide immediate access to grants information Our Players ?? Western Australians won a total of $267.1 million in prizes from lottery games ?? A WA player won the largest prize in Australian Lottery history, winning the entire $30 million Powerball Lotto jackpot in January 2001 ?? 94 Western Australians won Division
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