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1 Relevant Legislation Annual Report 2002 LOTTERIES COMMISSION ANNUAL REPORT 2002 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 2 LOTTERIES COMMISSION ANNUAL REPORT 2002 TABLE OF CONTENTS STATEMENT OF COMPLIANCE...................................................... 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 LEGISLATION IMPACTING THE LOTTERIES COMMISSION....... 22 ENABLING LEGISLATION 22 MINISTERIAL DIRECTIVES 22 OTHER LEGISLATION IMPACTING ON THE LOTTERIES COMMISSION’S ACTIVITIES 23 PUBLICATIONS AVAILABLE TO THE PUBLIC 23 OUR LOTTERY BUSINESS ........................................................... 25 LOTTO PRODUCTS 25 SCRATCH’N’WIN 28 OTHER PRODUCTS 30 OUR RETAILERS 30 OUR LOTTERIES CUSTOMERS 32 OUR MARKETING PROCESSES (SUPPORT TO THE RETAIL NETWORK)33 OUR SUPPORT FOR OUR COMMUNITY 35 SUPPORT FOR HOSPITALS AND PUBLIC HEALTH SERVICES 36 3 LOTTERIES COMMISSION ANNUAL REPORT 2002 TABLE OF CONTENTS SUPPORT FOR THE ARTS 36 SUPPORT FOR SPORTS 37 SUPPORT FOR THE PERTH INTERNATIONAL ARTS FESTIVAL 37 SUPPORT FOR THE WESTERN AUSTRALIAN FILM INDUSTRY 38 OUR GRANT APPLICANTS 40 OUR DIRECT GRANT PROCESSES 45 OUR PEOPLE AND ENVIRONMENT..............................................49 OUR WORKING ENVIRONMENT 49 PEOPLE 2003 PROGRAM 50 STAFF STATISTICS 52 STAFF PROFILES 53 WORKPLACE REFORM THE COMMISSION’S BUSINESS IMPROVEMENT & REMUNERATION PLAN 54 TRAINING AND DEVELOPMENT 55 STAFF INDUCTION 55 STAFFING POLICIES 55 RECRUITMENT 55 OCCUPATIONAL HEALTH SAFETY AND WELFARE 55 WORKER’S COMPENSATION AND REHABILITATION 55 INDUSTRIAL RELATIONS 56 OUR ORGANISATION ....................................................................56 ORGANISATION STRUCTURE AT 30 JUNE 2002 57 BOARD OF COMMISSIONERS 58 ADVISORY COMMITTEES AND TECHNICAL PANELS 60 RETAILERS CONSULTATIVE PANEL 61 AUDIT COMMITTEE AND INTERNAL AUDIT 61 4 LOTTERIES COMMISSION ANNUAL REPORT 2002 TABLE OF CONTENTS OUR INVESTMENT IN THE FUTURE 62 INFORMATION TECHNOLOGY PLANNING AND DEVELOPMENT 62 COMMUNICATING WITH OUR STAKEHOLDERS 64 STRATEGIC & BUSINESS PLANNING 67 BUSINESS CONTINUITY AND DISASTER RECOVERY PLANNING 67 COMPLIANCE WITH GOVERNMENT REPORTING POLICIES .... 68 REPORTS ON CUSTOMER OUTCOMES 68 REPORTS ON ACCOUNTABILITY AND COMPLIANCE ISSUES 70 STRATEGIC PLAN 2000-2003, PERFORMANCE MEASURES..... 73 OUTPUT SUMMARY TABLES 76 OUTCOME NUMBER 1 – LOTTERY PRODUCTS 76 OUTCOME NUMBER 2 – COMMUNITY FUNDING 78 CERTIFICATION OF PERFORMANCE INDICATORS ................... 80 AUDITOR GENERAL’S OPINION ON PERFORMANCE INDICATORS......................................................................... 81 KEY PERFORMANCE INDICATORS (AUDITED) .......................... 82 KEY PERFORMANCE INDICATOR TABLES (AUDITED)83 ANNUAL ACCOUNTS .................................................................... 85 AUDITOR GENERAL’S OPINION ON FINANCIAL STATEMENTS 86 NOTES TO THE FINANCIAL STATEMENTS ................................. 90 1. SIGNIFICANT ACCOUNTING POLICIES .............................. 90 2. TRADING PROFIT................................................................. 95 3. FORFEITED PRIZES............................................................. 96 5 LOTTERIES COMMISSION ANNUAL REPORT 2002 TABLE OF CONTENTS 4. RETAILER FEES....................................................................96 5. PLAYER REGISTRATION SERVICE .....................................96 6. NET PROFIT OR LOSS ON DISPOSAL OF NON-CURRENT ASSETS .................................................................................97 7. OTHER REVENUES FROM ORDINARY ACTIVITIES ...........97 8. REMUNERATION OF AUDITOR............................................97 9. Building and Facility Management ..........................................98 10. CORPORATE MANAGEMENT ..............................................98 11. GAMING SYSTEM MANAGEMENT.......................................99 12. NON-GAMING SYSTEM MANAGEMENT..............................99 13. PRODUCT MANAGEMENT .................................................100 14. RETAIL NETWORK MANAGEMENT ...................................100 15. DEPRECIATION...................................................................101 16. FUNDING MANAGEMENT...................................................101 17. Community Funding .............................................................102 18. OTHER FINANCIAL ASSETS ..............................................103 19. INVENTORIES .....................................................................103 20. RECEIVABLES.....................................................................104 21. WORK IN PROGRESS.........................................................104 22. PROPERTY, PLANT & EQUIPMENT...................................105 6 LOTTERIES COMMISSION ANNUAL REPORT 2002 TABLE OF CONTENTS 23. PAYABLES .......................................................................... 106 24. PROVISIONS ...................................................................... 107 25. EQUITY ............................................................................... 108 26. COMMITMENTS FOR EXPENDITURE ............................... 108 27. NOTES TO THE STATEMENT OF CASH FLOWS.............. 109 28. EXPLANATORY STATEMENT............................................ 111 29. FINANCIAL INSTRUMENTS................................................ 114 30 REMUNERATION OF MEMBERS OF THE ACCOUNTABLE AUTHORITY AND SENIOR OFFICERS .............................. 115 32. SEGMENT INFORMATION ................................................. 117 FIVE YEAR SUMMARY OF FINANCIAL DATA ............................ 121 DIRECT GRANTS......................................................................... 122 7 LOTTERIES COMMISSION ANNUAL REPORT 2002 REPORT ON OPERATIONS STATEMENT OF COMPLIANCE For the Year Ended 30 June 2002 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 2002. 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). 8 LOTTERIES COMMISSION ANNUAL REPORT 2002 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 proceeds and 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 (a three digit numbers game) and Soccer Pools (a sports game based on soccer matches). The proceeds from the sale of lottery products are returned to the community in various ways according to the provisions of the Act (see Enabling Legislation), including, via State Treasury, for the support of public health services, and for arts and sports organisations. The Lotteries Commission also directly distributes, to Western Australian charitable and community groups, a significant proportion of the proceeds and profits from lottery sales through a range of grant funding programs, which are administered by 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 is: “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; and • 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.” 9 LOTTERIES COMMISSION ANNUAL REPORT 2002 REPORT ON OPERATIONS HIGHLIGHTS OF THE YEAR OUR GAMES • The Commission achieved sales of $454.7 million. • Western Australia recorded Australia’s highest per capita sales of Saturday Lotto, OZ Lotto, Powerball Lotto and Super 66. • 25 game Slikpiks,
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