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.
2009-10 Priorities
Strategic and operational issues to be pursued in 2009-10 include:
•	implementing 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
Budget			2008-09
Est. Outcome	2009-10
Budget	
33		  Staffing  (FTE)	29	32	

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	
	2008-09
Est. Outcome
$’000	2009-10
 Budget
$’000	2008-09
Est. Outcome
$’000	2009-10
Budget
$’000	
Output Class 1:
Gambling Regulation and Compliance					
Output Class 1.1:
Gambling Regulation and Compliance	
3,995	
4,132	
4,142	
4,274	
Note:
1.	Total cost includes depreciation of $0.012 million in 2008-09 and $0.038 million in 2009-10 and excludes transfer expenses 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
	2008-09
Targets 	2008-09
Est. Outcome	2009-10
Targets	
Output Class 1:  Gambling Regulation and Compliance				
Output Class 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						
	2008-09	2009-10	2010-11	2011-12	2012-13	
Government Payment for Outputs	Est. Out.	Budget	Estimate	Estimate	Estimate	
	$'000	$'000	$'000	$'000	$'000	
						
2008-09 Budget	4,230	4,319	4,367	4,426	4,426	
						
2009-10 Budget Policy Adjustment						
Efficiency Dividend	 - 	 - 	(22)	(22)	(22)	
						
2009-10  Budget Technical Adjustments						
Revised Indexation Parameters	 - 	(3)	(3)	(3)	68	
Revised Superannuation Contributions	(88)	(42)	(44)	(50)	(65)	
						
2009-10 Budget	4,142	4,274	4,298	4,351	4,407	

						
						
Changes to Appropriation - Departmental						
	2008-09	2009-10	2010-11	2011-12	2012-13	
Capital Injections	Est. Out.	Budget	Estimate	Estimate	Estimate	
	$'000	$'000	$'000	$'000	$'000	
						
2008-09 Budget	1,875	 - 	 - 	 - 	 - 	

2009-10 Budget	1,875	 - 	 - 	 - 	 - 	

ACT Gambling and Racing Commission
Operating Statement
  2008-09			  2008-09	   2009-10		  2010-11	    2011-12	  2012-13		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
4,230		Government Payment for Outputs	4,142	4,274	3	4,298	4,351	4,407		
56,941		Taxes Fees and Fines	54,891	56,687	3	58,672	60,732	62,872		
220		Interest	175	77	-56	77	88	100		
25		Resources Received Free of Charge	25	25	-	25	25	25		
61,416		Total Revenue	59,233	61,063	3	63,072	65,196	67,404		
		Gains								
328		Other Gains	328	437	33	355	310	325		
328		Total Gains	328	437	33	355	310	325		
61,744		Total Income	59,561	61,500	3	63,427	65,506	67,729		
		Expenses								
2,543		Employee Expenses	2,543	2,579	1	2,611	2,646	2,682		
466		Superannuation Expenses	378	427	13	416	406	397		
1,060		Supplies and Services	1,060	1,086	2	1,089	1,116	1,146		
15		Depreciation and Amortisation	12	38	217	47	47	47		
2		Borrowing Costs	2	2	-	2	2	2		
57,266		Transfer Expenses	55,216	57,121	3	59,024	61,040	63,194		
61,352		Total Ordinary Expenses	59,211	61,253	3	63,189	65,257	67,468		
392		Operating Result	350	247	-29	238	249	261		

ACT Gambling and Racing Commission
Balance Sheet
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/09			as at 30/6/09	as at 30/6/10	   Var	as at 30/6/11	as at 30/6/12	as at 30/6/13		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
3,690		Cash and Cash Equivalents	2,434	2,396	-2	2,718	3,051	3,396		
4,363		Receivables	5,381	5,386	..	5,391	5,396	5,401		
27		Other	0	0	-	0	0	0		
8,080		Total Current Assets	7,815	7,782	..	8,109	8,447	8,797		
		Non Current Assets								
34		Property, Plant and Equipment	32	42	31	40	52	52		
357		Intangibles	0	334	#	299	264	229		
391		Total Non Current Assets	32	376	#	339	316	281		
8,471		TOTAL ASSETS	7,847	8,158	4	8,448	8,763	9,078		
		Current Liabilities								
4,339		Payables	5,311	5,311	-	5,311	5,311	5,311		
24		Finance Leases	22	7	-68	20	7	22		
819		Employee Benefits	603	615	2	627	639	651		
131		Other	134	134	-	134	134	134		
5,313		Total Current Liabilities	6,070	6,067	..	6,092	6,091	6,118		
		Non Current Liabilities								
0		Finance Leases	0	20	#	0	20	0		
151		Employee Benefits	121	168	39	215	262	309		
151		Total Non Current Liabilities	121	188	55	215	282	309		
5,464		TOTAL LIABILITIES	6,191	6,255	1	6,307	6,373	6,427		
3,007		NET ASSETS	1,656	1,903	15	2,141	2,390	2,651		
		REPRESENTED BY FUNDS EMPLOYED								
3,007		Accumulated Funds	1,651	1,898	15	2,136	2,385	2,646		
0		Reserves	5	5	-	5	5	5		
3,007		TOTAL FUNDS EMPLOYED	1,656	1,903	15	2,141	2,390	2,651		

ACT Gambling and Racing Commission
Cash Flow Statement
  2008-09			  2008-09	   2009-10		  2010-11	    2011-12	  2012-13		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
4,230		Cash from Government for Outputs	4,142	4,274	3	4,298	4,351	4,407		
56,941		Taxes, Fees and Fines	54,891	56,687	3	58,673	60,733	62,872		
220		Interest Received	175	77	-56	77	88	100		
471		Other Revenue	471	547	16	468	426	444		
61,862		Operating Receipts	59,679	61,585	3	63,516	65,598	67,823		
		Payments								
2,463		Related to Employees	2,463	2,520	2	2,552	2,588	2,623		
466		Related to Superannuation	378	427	13	416	405	397		
1,039		Related to Supplies and Services	1,037	1,063	3	1,066	1,094	1,123		
0		Borrowing Costs	2	2	-	2	2	2		
143		Other	143	110	-23	113	116	119		
57,269		Territory Receipts to Government	55,219	57,124	3	59,028	61,043	63,197		
61,380		Operating Payments	59,242	61,246	3	63,177	65,248	67,461		
482		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	437	339	-22	339	350	362		
		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	0	360	#	0	0	0		
370		Investing Payments	10	370	#	10	10	10		
-370		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	-10	-370	-#	-10	-10	-10		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
1,875		Capital Injection from Government	1,875	0	-100	0	0	0		
1,875		Financing Receipts	1,875	0	-100	0	0	0		
		Payments								
0		Distributions to Government	2,000	0	-100	0	0	0		
7		Repayment of Finance Lease	7	7	-	7	7	7		
1,875		Payments of Transferred Cash Balances	1,875	0	-100	0	0	0		
1,882		Financing Payments	3,882	7	-100	7	7	7		
-7		NET CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES	-2,007	-7	100	-7	-7	-7		
105		NET INCREASE/ (DECREASE) IN CASH HELD	-1,580	-38	98	322	333	345		
3,585		CASH AT BEGINNING OF REPORTING PERIOD	4,014	2,434	-39	2,396	2,718	3,051		
3,690		CASH AT THE END OF THE REPORTING PERIOD	2,434	2,396	-2	2,718	3,051	3,396		

ACT Gambling and Racing Commission
Statement of Changes in Equity
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/09			as at 30/6/09	as at 30/6/10	   Var	as at 30/6/11	as at 30/6/12	as at 30/6/13		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
2,615		Opening Balance	3,306	1,656	-50	1,903	2,141	2,390		
		Accumulated Funds								
392		Operating Result for the Period	350	247	-29	238	249	261		
		Reserves								
392		Total Income And Expense For The Period	350	247	-29	238	249	261		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
1,875		Capital Injections	1,875	0	-100	0	0	0		
0		Capital Distributions	-2,000	0	100	0	0	0		
-1,875		Transfer of Cash Balances	-1,875	0	100	0	0	0		
3,007		Closing Balance	1,656	1,903	15	2,141	2,390	2,651		
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	government payment for outputs:  the increase of $0.132 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to indexation of operating expenses.
•	taxes, fees and fines:
•	the decrease of $2.050 million in the 2008-09 estimated outcome from the original budget is due to a decrease in gaming machine activity ($1.7 million), casino activity ($0.1 million) and sports bookmaking activity ($0.250 million); and
•	the increase of $1.796 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to an anticipated increase in gaming activity.
•	interest:
•	the decrease of $0.045 million in the 2008-09 estimated outcome from the original budget is due to reduced interest rates and a $2 million reduction in the balance of the bank account due to a distribution of surplus funds to Government; and
•	the decrease of $0.098 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to lower interest rates and the flow-on affect of a $2 million reduction in the balance of the bank account due to a distribution of surplus funds to Government in 2008-09.
•	gains:  the increase of $0.109 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to an increase in unclaimed lotteries monies held in trust.
•	superannuation expenses:
•	the decrease of $0.088 million in the 2008-09 estimated outcome from the original budget is due to lower staffing numbers associated with delays in filling vacancies and a lower number of CSS and PSS superannuation scheme members; and
•	the increase of $0.049 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to the expected filling of vacant staffing positions.
•	transfer expenses:  the decrease of $2.050 million in the 2008-09 estimated outcome from the original budget and the increase of $1.905 million in 2009-10 Budget from the 2008-09 estimated outcome are due to the reasons noted above under taxes, fees and fines and gains.
Balance Sheet
•	cash and cash equivalents:  the decrease of $1.256 million in the 2008-09 estimated outcome from the original budget is mainly due to a $2 million distribution of surplus funds to Government and reduced interest rates, offset by a rollover of funds allocated to the new gaming machine database system and the flow-on-effect of the 2007-08 audited results.
•	receivables:  the increase of $1.018 million in the 2008-09 estimated outcome from the original budget is due to an increase in gaming taxation receivable from licensees in July 2009 for the month of June.
•	intangibles:  the decrease of $0.357 million in the 2008-09 estimated outcome from the original budget and the increase of $0.334 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to the rollover of funds for the new gaming machine database system from 2008-09.
•	payables:  the increase of $0.972 million in the 2008-09 estimated outcome from the original budget is mainly due to an increase in gaming taxation receivable from licensees and payable to the Territory from the Commission in July 2009 for the month of June.
•	current and non current employee benefits:  the decrease of $0.246 million in the 2008-09 estimated outcome from the original budget is mainly due to an increase in the number of employees utilising both annual leave and long service leave benefits.
Statement of Changes in Equity
Variances in the statement are explained in the notes above.