ACT GAMBLING AND RACING COMMISSION
Objectives
The ACT Gambling and Racing Commission (the Commission) is an independent statutory authority established under the Gambling and Racing Control Act 1999 to control, supervise and regulate gambling and racing activities in the Territory.
The responsibilities of the Commission incorporate the ongoing development and implementation of an integrated regulatory framework for all gambling activity in the ACT, including the casino, machine gaming, lotteries, racing (as provided in the Racing Act 1999), race and sports bookmaking and interactive gambling.
The Commission also monitors and researches the social effects of gambling and of problem gambling in the ACT.
In discharging its responsibilities, the Commission undertakes broad community consultation and performs its functions in a way that best promotes the public interest.  It must, as far as practicable, promote consumer protection, minimise the possibility of criminal or unethical activity, and reduce the risks and costs to the community and individuals concerned, of problem gambling.
2010-11 Priorities
Strategic and operational issues to be pursued in 2010‑11 include:
•	continuing to implement legislative changes to the various gaming laws as required;
•	enhancing the effectiveness of the Commission’s compliance program on a continual risk assessment basis;
•	enhancing the Commission’s community engagement strategy by building upon strategic links with its stakeholders;
•	developing and enhancing the Commission’s community education program relating to problem gambling;
•	liaising with ACT racing industry participants and other jurisdictions to facilitate the ongoing conduct of racing in the ACT in the context of legislative changes interstate; and
•	assessing the findings and recommendations of relevant gambling research projects in relation to compliance and policy issues.
Estimated Employment Level
2008‑09
Actual Outcome		2009-10
Budget
	2009-10
Est. Outcome	2010-11
Budget
	
29	Staffing (FTE) 	32	28	33	

Strategic Indicators
Strategic Indicator 1
Increase Gambling Operators’ Compliance with Legislation
The Commission conducts a comprehensive audit program to ensure that operators comply with all relevant gaming and wagering legislation.  Through this audit program and its education and liaison with operators, the Commission aims to increase compliance with the various Acts.  The level of reduction in the number of breaches detected per audit will indicate the success, or otherwise, of the Commission’s activities in increasing compliance with the legislation.

Strategic Indicator 2
Increase the Accuracy of Returns by Operators for Gambling Related Taxes,
Fees and Fines on Behalf of the ACT Government.
The Commission receives returns from operators along with payments for gambling related taxes, fees and fines.  The Commission reconciles the returns against operators’ activities and issues variation advices if discrepancies are found.  The Commission aims to reduce the number of variations required through its education and liaison with operators in the ACT.  The level of reduction in the number of variations to returns will indicate the success, or otherwise, of the Commission’s activities in this area.

Output Classes
	Total Cost1	Government Payment for Outputs	
	2009-10
Est. Outcome
$’000	2010-11
 Budget
$’000	2009-10
Est. Outcome
$’000	2010-11
Budget
$’000	
Output Class 1: 
Gambling Regulation and Compliance	4,118	4,288	4,249	4,336	
Output 1.1:  Gambling Regulation and Compliance	4,118	4,288	4,249	4,336	
Note:
1.	Total cost includes depreciation/amortisation of $0.017 million in 2009-10 and $0.047 million in 2010-11 and excludes transfer expense in both years.
Output Description
Key roles of the ACT Gambling and Racing Commission are to:
•	administer gaming laws;
•	control, supervise and regulate gaming in the Territory; and
•	collect and verify gambling taxes, fees and charges.
Accountability Indicators
	2009-10
Targets 	2009-10
Est. Outcome	2010-11
Targets	
Output Class 1:  Gambling Regulation and Compliance				
Output 1.1:  Gambling Regulation and Compliance	
a.	Conduct compliance audits of operator activity to detect compliance with legal framework 				
­	Casino	100	100	100	
­	Gaming Machines	250	250	250	
­	Bookmakers	50	50	50	
­	Minor Lotteries	90	90	90	
Effectively regulating gambling and racing activity for statutory compliance	
b.	Conduct revenue audits to ensure correct payment of taxes and fees 				
­	Casino	12	12	12	
­	Gaming Machines	12	12	12	
­	Bookmakers	12	12	12	
Ensure compliance with statutory payments of taxes and fees	

Changes to Appropriation
Changes to Appropriation - Departmental						
 	2009-10	2010-11	2011-12	2012-13	2013-14	
Government Payment for Outputs	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2009-10 Budget	 4,274	 4,298	 4,351	 4,407	 4,407	
						
2010-11 Budget Policy Adjustments						
Revised Wage Parameters	- 	38 	67 	68 	69 	
Efficiency Dividend	- 	- 	(22)	(34)	(46)	
						
2010-11 Budget Technical Adjustments						
Revised Indexation Parameters	- 	- 	- 	- 	71 	
Revised Superannuation Contributions	(25)	- 	- 	- 	- 	
						
2010-11 Budget	 4,249	 4,336	 4,396	 4,441	 4,501	

ACT Gambling and Racing Commission
Operating Statement
  2009-10			  2009-10	   2010-11		  2011-12	    2012-13	  2013-14		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
4,274		Government Payment for Outputs	4,249	4,336	2	4,396	4,441	4,501		
56,687		Taxes Fees and Fines	55,311	55,007	-1	56,402	58,374	60,411		
77		Interest	150	192	28	205	218	231		
0		Other Revenue	25	75	200	75	75	75		
25		Resources Received Free of Charge	25	25	-	25	25	25		
61,063		Total Revenue	59,760	59,635	..	61,103	63,133	65,243		
		Gains								
437		Other Gains	140	143	2	147	150	154		
437		Total Gains	140	143	2	147	150	154		
61,500		Total Income	59,900	59,778	..	61,250	63,283	65,397		
		Expenses								
2,579		Employee Expenses	2,604	2,709	4	2,760	2,796	2,832		
427		Superannuation Expenses	404	426	5	420	412	418		
1,086		Supplies and Services	1,091	1,104	1	1,109	1,127	1,145		
38		Depreciation and Amortisation	17	47	176	47	47	47		
2		Borrowing Costs	2	2	-	2	2	2		
57,121		Transfer Expenses	55,308	55,004	-1	56,400	58,371	60,408		
61,253		Total Ordinary Expenses	59,426	59,292	..	60,738	62,755	64,852		
247		Operating Result	474	486	3	512	528	545		
247		Total Comprehensive Income	474	486	3	512	528	545		

ACT Gambling and Racing Commission
Balance Sheet
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/10			as at 30/6/10	as at 30/6/11	   Var	as at 30/6/12	as at 30/6/13	as at 30/6/14		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
2,396		Cash and Cash Equivalents	5,166	5,590	8	6,187	6,800	7,430		
5,386		Receivables	4,863	4,868	..	4,873	4,878	4,883		
0		Other	1	1	-	1	1	1		
7,782		Total Current Assets	10,030	10,459	4	11,061	11,679	12,314		
		Non Current Assets								
42		Property, Plant and Equipment	40	38	-5	50	50	60		
334		Intangibles	199	320	61	285	250	215		
376		Total Non Current Assets	239	358	50	335	300	275		
8,158		TOTAL ASSETS	10,269	10,817	5	11,396	11,979	12,589		
		Current Liabilities								
5,311		Payables	4,833	4,833	-	4,833	4,833	4,833		
7		Finance Leases	7	20	186	7	22	7		
615		Employee Benefits	785	804	2	816	828	840		
134		Other	160	160	-	160	160	160		
6,067		Total Current Liabilities	5,785	5,817	1	5,816	5,843	5,840		
		Non Current Liabilities								
20		Finance Leases	20	0	-100	20	0	20		
168		Employee Benefits	137	187	36	235	283	331		
188		Total Non Current Liabilities	157	187	19	255	283	351		
6,255		TOTAL LIABILITIES	5,942	6,004	1	6,071	6,126	6,191		
1,903		NET ASSETS	4,327	4,813	11	5,325	5,853	6,398		
		REPRESENTED BY FUNDS EMPLOYED								
1,898		Accumulated Funds	4,322	4,808	11	5,320	5,848	6,393		
5		Reserves	5	5	-	5	5	5		
1,903		TOTAL FUNDS EMPLOYED	4,327	4,813	11	5,325	5,853	6,398		

ACT Gambling and Racing Commission
Cash Flow Statement
  2009-10			  2009-10	   2010-11		  2011-12	    2012-13	  2013-14		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
4,274		Cash from Government for Outputs	4,249	4,336	2	4,396	4,441	4,501		
56,687		Taxes, Fees and Fines	55,311	55,007	-1	56,402	58,374	60,411		
77		Interest Received	150	192	28	205	218	231		
547		Other Revenue	275	331	20	338	344	348		
61,585		Operating Receipts	59,985	59,866	..	61,341	63,377	65,491		
		Payments								
2,520		Related to Employees	2,545	2,640	4	2,701	2,736	2,772		
427		Related to Superannuation	404	426	5	419	412	418		
1,063		Related to Supplies and Services	1,068	1,081	1	1,087	1,104	1,122		
2		Borrowing Costs	2	2	-	2	2	2		
110		Other	110	113	3	116	119	119		
57,124		Territory Receipts to Government	55,311	55,007	-1	56,402	58,374	60,411		
61,246		Operating Payments	59,440	59,269	..	60,727	62,747	64,844		
339		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	545	597	10	614	630	647		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Payments								
10		Purchase of Property, Plant and Equipment and Capital Works	10	10	-	10	10	10		
360		Purchase of Land and Intangibles	204	156	-24	0	0	0		
370		Investing Payments	214	166	-22	10	10	10		
-370		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	-214	-166	22	-10	-10	-10		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Payments								
7		Repayment of Finance Lease	7	7	-	7	7	7		
7		Financing Payments	7	7	-	7	7	7		
-7		NET CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES	-7	-7	-	-7	-7	-7		
-38		NET INCREASE/ (DECREASE) IN CASH HELD	324	424	31	597	613	630		
2,434		CASH AT BEGINNING OF REPORTING PERIOD	4,842	5,166	7	5,590	6,187	6,800		
2,396		CASH AT THE END OF THE REPORTING PERIOD	5,166	5,590	8	6,187	6,800	7,430		

Gambling and Racing Commission
Statement of Changes in Equity
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/10			as at 30/6/10	as at 30/6/11	   Var	as at 30/6/12	as at 30/6/13	as at 30/6/14		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Opening Equity								
1,651		Opening Accumulated Funds	3,848	4,322	12	4,808	5,320	5,848		
5		Opening Asset Revaluation Reserve	5	5	-	5	5	5		
1,656		Balance at the Start of the Reporting Period	3,853	4,327	12	4,813	5,325	5,853		
		Comprehensive Income								
247		Operating Result for the Period	474	486	3	512	528	545		
247		Total Comprehensive Income	474	486	3	512	528	545		
0		Total Movement in Reserves	0	0	-	0	0	0		
		Transactions Involving Owners Affecting Accumulated Funds								
		Closing Equity								
1,898		Closing Accumulated Funds	4,322	4,808	11	5,320	5,848	6,393		
5		Closing Asset Revaluation Reserve	5	5	-	5	5	5		
1,903		Balance at the End of the Reporting Period	4,327	4,813	11	5,325	5,853	6,398		
Notes to the Budget Statements 
Significant variations are as follows:
Operating Statement 
•	taxes, fees and fines:
–	the decrease of $1.376 million in the 2009‑10 estimated outcome from the original budget is mainly due to a decrease in gaming machine activity ($3 million), partially offset by an increase in interstate lottery activity ($1.414 million) and additional ACTTAB revenue ($0.208 million); and
–	the decrease of $0.304 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is mainly due to an anticipated decrease in interstate lotteries offset by growth in other gaming activities.
•	interest:
–	the increase of $0.073 million in the 2009‑10 estimated outcome from the original budget is due to increased interest rates and higher levels of cash held; and
–	the increase of $0.042 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is mainly due to higher interest rates and higher levels of cash held.
•	other revenue:  the increase of $0.025 million in the 2009‑10 estimated outcome from the original budget and the increase of $0.050 million in the 2010‑11 Budget from the 2009‑10 estimated outcome reflects the administrative fee payable for operating the Race Field Information Scheme which commenced on 1 March 2010.
•	gains:  the decrease of $0.297 million in the 2009‑10 estimated outcome from the original budget is due to a decrease in unclaimed lotteries monies.
•	employee expenses:  the increase of $0.105 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is mainly due to the costs associated with operating the Race Field Information Scheme, expected filling of vacant positions and revised wage parameters. 
•	superannuation expenses:
–	the decrease of $0.023 million in the 2009‑10 estimated outcome from the original budget is mainly due to lower staffing numbers associated with recruitment lags; and
–	the increase of $0.022 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is mainly due to the expected filling of vacant staffing positions. 
•	depreciation and amortisation:  the decrease of $0.021 million in the 2009‑10 estimated outcome from the original budget and the increase of $0.030 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to the timing of the development and implementation of the new gaming machine database system.
•	transfer expenses:
–	the decrease of $1.813 million in the 2009‑10 estimated outcome from the original budget is due to the reasons noted above under taxes, fees and fines and unclaimed lotteries monies now being held in a bank account; and
–	the decrease of $0.304 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to the reasons noted above under taxes, fees and fines.
Balance Sheet 
•	cash and cash equivalents:  
–	the increase of $2.770 million in the 2009‑10 estimated outcome from the original budget is mainly due to a $1.875 million transfer of unclaimed lotteries monies from the ACT Department of Treasury, partial rollover of funds allocated to the development of the new gaming machine database system and the flow-on effect of the 2008‑09 audited results; and
–	the increase of $0.424 million in the 2010‑11 Budget from the 2009‑10 estimated outcome reflects anticipated positive cash flows from operating activities.
•	receivables:  the decrease of $0.523 million in the 2009‑10 estimated outcome from the original budget is due to an estimated decrease in gaming taxation receivables.
•	intangibles:  the decrease of $0.135 million in the 2009‑10 estimated outcome from the original budget and the increase of $0.121 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to the timing of the development and implementation of the new gaming machine database system.
•	payables:  the decrease of $0.478 million in the 2009‑10 estimated outcome from the original budget is due to a decrease in gaming taxation receivables.
•	current and non current employee benefits:  
–	the increase of $0.139 million in the 2009‑10 estimated outcome from the original budget is mainly due to the inclusion of on-costs and the change in methodology used to estimate long service leave liability; and
–	the increase of $0.069 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is mainly due to revised wage parameters and an increase in staff accumulated leave.
Cash Flow Statement
Variances in the statement are explained in the notes above.
Statement of Changes in Equity
Variances in the statement are explained in the notes above.