Annual Report Department of the Arts, Sport and Recreation 2006-07 The Hon F E Sartor, MP Minister for Planning Minister for Redfern Waterloo Minister for the Arts Level 34, Governor Macquarie Tower 1 Farrer Place SYDNEY NSW 2000 The Hon G J West, MP Minister for Gaming and Racing Minister for Sport and Recreation Level 31, Governor Macquarie Tower 1 Farrer Place SYDNEY NSW 2000 Dear Ministers It is my pleasure to submit to you, for presentation to Parliament, the Department of the Arts, Sport and Recreation’s Annual Report for the year ended 30 June, 2007. The annual report, in my opinion, has been prepared in full compliance with the requirements of the Annual Reports (Departments) Act 1985, the Annual Reports (Departments) Regulation 2005 and the Public Finance and Audit Act 1983. Yours sincerely Peter L D Loxton Acting Director-General Contents Overview 2 Who we are 2 What we do 2 Our stakeholders 2 Framework 2 Director-General’s report Highlights 2006-07 and the year ahead 4 Financial position 8 Corporate governance 9 Review of operations Operating environment 12 Arts NSW 16 NSW Office of Liquor, Gaming and Racing 30 NSW Sport and Recreation 44 Organisational development 60 Financial statements 64 Appendixes 98 Glossary 169 Index 170 Contact details 172 Overview • creating sport and recreation and arts participation Who we are opportunities, particularly for under-represented groups The Department of the Arts, Sport and Recreation was and for people in regional areas established in March 2006. The department combines the • administering arts and sports grants programs, including skills and resources of Arts NSW, the NSW Office of Liquor, for sports facilities and venues Gaming and Racing, and NSW Sport and Recreation. • managing department-owned or controlled arts, sporting The department also has administrative relationships with and recreation facilities Centennial and Moore Park Trust, Parramatta Park Trust and several other sport and recreation venue trusts in New South • providing governance support and advice to NSW cultural Wales, as well as with the state’s major arts and cultural institutions and NSW Government-sponsored trusts. institutions: Art Gallery of NSW, Australian Museum, Historic Houses Trust of NSW, Museum of Applied Arts and Sciences, NSW Film and Television Office, State Library of NSW, Our stakeholders State Records Authority (transferred to the Department of Commerce during 2006-07) and Sydney Opera House. Each Our department works closely with a diverse range of of these arts and cultural institutions is a statutory body with stakeholders, including the general public, other government its own council or board of trustees. agencies, as well as local and Commonwealth government. In addition: The new organisation has brought synergies and efficiencies to support its three main business arms, Arts NSW, the • Arts NSW serves arts and cultural organisations and artists NSW Office of Liquor, Gaming and Racing and NSW Sport by managing grants, properties and capital spending. Arts and Recreation. All divisions seek to work closely with local NSW also develops impartial advice on the arts for the communities, industry partners and government to maximise government to maximise the impact of public spending. community participation in the arts, sport and recreation and • The NSW Office of Liquor, Gaming and Racing works with to regulate the liquor, gaming, racing and charity industries. We industry groups, industry operators, the clubs movement are also committed to incorporating the state government’s and government agencies such as NSW Health and priorities, particularly as articulated in the NSW State Plan, A the NSW Police Force to regulate four sectors – liquor, New Direction for NSW, in all aspects of our activities. gaming, racing and charities. During 2006-07 the department continued to maximise • NSW Sport and Recreation works with the sport and opportunities for ongoing internal efficiencies. A departmental recreation industry and community organisations to corporate plan covering 2007-2011 was developed during maximise opportunities for participation in sport and active 2006-07, and will be published in 2007-08. A new system of recreation and support the growth and sustainability of the operation for corporate services was also implemented during sport and recreation industry. 2006-07 (see page 60), and initiatives to achieve further efficiencies are underway. Framework What we do The Department of the Arts, Sport and Recreation Corporate Plan 2007-2011 was developed during 2006-07. This plan The purpose of the department is to foster a more active, has been used as the reporting framework for the 2006-07 rewarding and fulfilling lifestyle for the people of New South annual report and will be formally released during 2007-08. Wales. We will achieve this through cultivating a spirited arts and cultural environment, developing a community-based sport and recreation ethos, and ensuring the proper conduct and Our corporate results balanced development of the liquor, gaming, racing and charity The department aims to achieve the following results: industries. Our services include: 1. Stronger community cohesion and capacity. • leading the implementation of multi-agency initiatives and strategies as outlined in the NSW State Plan Priority 2. Improved health and wellbeing. E8: More people using parks, sporting and recreational 3. Strong, sustainable and responsible arts, hospitality, sport facilities and participating in the arts and cultural activity and recreation industries. • implementing NSW Government policy and regulatory 4. World-class standards of achievement and performance in frameworks for the development and responsible conduct arts and sport. of the arts, sport and recreation and hospitality sectors 5. Increased community and stakeholder appreciation of the • conducting compliance and education programs to assist value of the arts and the state’s cultural heritage, sport and the ethical conduct of the sport and recreation industry, recreation and the natural environment. gambling, racing and fundraising and the responsible service of alcohol 6. An efficient and responsive organisation. 2 Annual Report 2006-07 Department of the Arts, Sport and Recreation Annual Report 2006-07 Department of the Arts, Sport and Recreation OVERVIEW Our vision • a 20% increase in visits to State Government parks and reserves by 2016 The people of New South Wales lead active and rewarding lives in strong, harmonious communities, through participation • a 10% increase in the number of people participating in in the arts, sport and responsible and creative recreation sporting activities and physical exercise by 2016 activities. • a 10% increase in participation in the arts and cultural activity by 2016. Our values We will work with a number of other government agencies to Access – commitment to communities and access to increase participation in these areas. Our partner agencies opportunities to participate in arts, sport and recreational include the Departments of Aboriginal Affairs, Environment activities. and Climate Change, Lands, Local Government, Planning, Primary Industries, Premier and Cabinet as well as NSW Integrity – enabling ethically and responsibly conducted sport Maritime Authority, Sydney Olympic Park Authority, Forests and recreation and leisure activities. NSW and Taronga Zoo. We will also work closely with local government, industry groups and community groups and Achievement – building and investing in the future to sustain organisations. a vibrant and innovative arts and cultural environment and high achievement in sports endeavours across the community. As well as leading the implementation of Priority E8, we also contribute to a number of other priority areas under the NSW Meaning – commitment to arts and recreational activities that State Plan. These include: add meaning and value to people’s lives. • R1: Reduced rates of crime, particularly violent crime. Heritage – respect for our cultural heritage with all the • R3: Reduced levels of antisocial behaviour. benefits of our diversity. • R4: Increased participation and integration in community Our department contributes to the NSW activities. State Plan • S3: Improved health through reduced obesity, smoking, illicit drug use and risk drinking. The department’s corporate plan aligns with the NSW State Plan, A New Direction for NSW, particularly in the ‘Environment • F2: Increased employment and community participation for for living’ area of activity. We are the lead agency for Priority people with disabilities. E8: More people using parks, sporting and recreational • P1: Increased business investment. facilities and participating in the arts and cultural activity. • P6: Increased business investment in rural and regional Priority E8 recognises that participation in physical and New South Wales. cultural activities contributes significantly to a better quality of life through helping to develop healthier people, stronger The following table indicates the alignment of our corporate communities and increased community harmony. It requires plan with the NSW State Plan. the government to deliver on the following targets: Corporate results NSW State Plan Priorities area of activity 1. Stronger community cohesion and capacity. Environment for living E8 Rights, respect and responsibility R1, R3, R4 2. Improved health and wellbeing. Environment for living E8 Delivering better services S3 Fairness and opportunity F2 3. Strong, sustainable and