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 on-going 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 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.
2007-08 Priorities
Strategic and operational issues to be pursued in 2007‑08 include:
•	implementing agreed recommendations of legislative reviews, including the Race and Sports Bookmaking Act 2001, the Gaming Machine Act 2004 and the Unlawful Games Act 1984; 
•	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; 
•	liaising with ACT racing industry participants to facilitate and enhance cooperation between the controlling bodies responsible for the conduct of racing in the ACT and the off-course wagering activities of other industry based enterprises; and
•	assessing the findings and recommendations of relevant gambling research projects in relation to compliance and policy issues.

Estimated Employment Level
	2006‑07
Est.  Outcome	2007‑08
Budget	
Staffing  (FTE)	31	33	

Output Classes
	Total Cost1	Government Payment for Outputs	
	2006-07
Est. Outcome
$’000	2007-08
 Budget
$’000	2006-07
Est. Outcome
$’000	2007-08
Budget
$’000	
Output Class 1:
Gambling Regulation and Compliance	3,887	3,993	4,028	4,145	
Output Class 1.1:
Gambling Regulation and Compliance	3,887	3,993	4,028	4,145	
Note: 
1.	Total cost includes depreciation of $0.016 million in 2006‑07 and depreciation of $0.005 million in 2007‑08 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.

Strategic Indicators
Strategic Indicator 1
Increase gambling operators’ compliance with legislation	
The Commission conducts an 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 required will indicate the success, or otherwise, of the Commission’s activities in this area.

Accountability Indicators
	2006-07
Targets 	2006-07
Est. Outcome	2007-08
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			90	90	90	
- Gaming Machines		210	210	250	
- Bookmakers			50	50	50	
- Minor Lotteries		70	70	70	
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						
 	2006-07	2007-08	2008-09	2009-10	2010-11	
Government Payment for Outputs	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2006-07 Budget	4,008	3,999	4,067	4,132	4,132	
						
2007-08 Budget Policy Adjustments 						
Wage Outcome	20	68	117	145	146	
Rental Supplementation	 - 	122	122	122	122	
						
2007-08 Budget Technical Adjustments						
Revised Indexation Parameters	 - 	2	2	2	66	
Shared Services Centre SLA Adjustment 	 - 	8	10	11	11	
Decreased Notional Superannuation Contribution Rates	 - 	(54)	(52)	(51)	(52)	
						
2007-08 Budget	4,028	4,145	4,266	4,361	4,425	

ACT Gambling and Racing Commission	
Operating Statement	
  2006-07			  2006-07	   2007-08		  2008-09	  2009-10	  2010-11		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
4,008		Government Payment for Outputs	4,028	4,145	3	4,266	4,361	4,425		
50,044		Taxes Fees and Fines	50,560	54,760	8	57,045	59,065	61,079		
62		Interest	62	62	-	62	62	62		
25		Resources Received free of charge	25	25	-	25	25	25		
54,139		Total Revenue	54,675	58,992	8	61,398	63,513	65,591		
		Gains								
246		Other Gains	246	333	35	328	437	355		
246		Total Gains	246	333	35	328	437	355		
54,385		Total Income	54,921	59,325	8	61,726	63,950	65,946		
		Expenses								
2,343		Employee Expenses	2,399	2,470	3	2,543	2,579	2,611		
528		Superannuation Expenses	533	492	-8	507	517	524		
951		Supplies and Services	939	1,026	9	1,057	1,085	1,110		
5		Depreciation and Amortisation	16	5	-69	5	5	5		
50,288		Transfer Expenses	50,804	55,090	8	57,370	59,499	61,431		
54,115		Total Ordinary Expenses	54,691	59,083	8	61,482	63,685	65,681		
270		Operating Result	230	242	5	244	265	265		

ACT Gambling and Racing Commission	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/07			as at 30/6/07	as at 30/6/08	   Var	as at 30/6/09	as at 30/6/10	as at 30/6/11		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
2,230		Cash and Cash Equivalents	2,444	2,758	13	3,072	3,386	3,700		
3,969		Receivables	4,384	4,389	..	4,394	4,399	4,404		
11		Other	11	11	-	11	11	11		
6,210		Total Current Assets	6,839	7,158	5	7,477	7,796	8,115		
		Non Current Assets								
15		Property, Plant and Equipment	9	14	56	19	24	29		
15		Total Non Current Assets	9	14	56	19	24	29		
6,225		TOTAL ASSETS	6,848	7,172	5	7,496	7,820	8,144		
		Current Liabilities								
3,929		Payables	4,279	4,279	-	4,279	4,279	4,279		
390		Employee Benefits	752	787	5	816	828	840		
105		Other	137	137	-	137	137	137		
4,424		Total Current Liabilities	5,168	5,203	1	5,232	5,244	5,256		
		Non Current Liabilities								
463		Employee Benefits	64	111	73	162	209	256		
463		Total Non Current Liabilities	64	111	73	162	209	256		
4,887		TOTAL LIABILITIES	5,232	5,314	2	5,394	5,453	5,512		
1,338		NET ASSETS	1,616	1,858	15	2,102	2,367	2,632		
		REPRESENTED BY FUNDS EMPLOYED								
1,338		Accumulated Funds	1,616	1,858	15	2,102	2,367	2,632		
1,338		TOTAL FUNDS EMPLOYED	1,616	1,858	15	2,102	2,367	2,632		

ACT Gambling and Racing Commission	
Cash Flow Statement	
  2006-07			  2006-07	   2007-08		  2008-09	  2009-10	  2010-11		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
4,008		Cash from Government for Outputs	4,028	4,145	3	4,266	4,361	4,425		
50,290		Taxes, Fees and Fines	50,806	55,093	8	57,373	59,502	61,434		
62		Interest Received	62	62	-	62	62	62		
107		Other Revenue	107	104	-3	107	110	113		
54,467		Operating Receipts	55,003	59,404	8	61,808	64,035	66,034		
		Payments								
2,817		Related to Employees	2,849	2,880	1	2,970	3,037	3,076		
931		Related to Supplies and Services	919	1,003	9	1,034	1,062	1,087		
107		Other	107	104	-3	107	110	113		
50,288		Territory Receipts to Government	50,804	55,093	8	57,373	59,502	61,434		
54,143		Operating Payments	54,679	59,080	8	61,484	63,711	65,710		
324		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	324	324	-	324	324	324		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Payments								
10		Purchase of Property, Plant and Equipment	10	10	-	10	10	10		
10		Investing Payments	10	10	-	10	10	10		
-10		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-10	-10	-	-10	-10	-10		
314		NET INCREASE/(DECREASE) IN CASH HELD	314	314	-	314	314	314		
1,916		CASH AT BEGINNING OF REPORTING PERIOD	2,130	2,444	15	2,758	3,072	3,386		
2,230		CASH AT THE END OF THE REPORTING PERIOD	2,444	2,758	13	3,072	3,386	3,700		

ACT Gambling and Racing Commission	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/07			as at 30/6/07	as at 30/6/08	   Var	as at 30/6/09	as at 30/6/10	as at 30/6/11		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
1,060		Opening Balance	1,378	1,616	17	1,858	2,102	2,367		
		Accumulated Funds								
270		Operating Result for the Period	230	242	5	244	265	265		
		Reserves								
270		Total Income And Expense For The Period	230	242	5	244	265	265		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
8		Inc/Dec in Net Assets due to Admin Restructure	8	0	-100	0	0	0		
1,338		Closing Balance	1,616	1,858	15	2,102	2,367	2,632		
Notes to the Budget Statements 
Significant variations are as follows:
Operating Statement 
•	government payment for outputs:  the increase of $0.117 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is mainly due to rental supplementation and the new clerical certified agreements.
•	taxes, fees and fines:  
–	the increase of $0.516 million in the 2006‑07 estimated outcome from the original budget is due to an increase in gaming machine activity, partially offset by a decrease in gaming activity in interstate lotteries and a decrease in sports betting turn‑over; and
–	the increase of $4.2 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is mainly due to an increase in the marginal tax rate of the top two tiers for gross monthly gaming machine revenue commencing on 1 July 2007, partially offset by decreased activity due to the introduction of smoking bans from 1 December 2006.
•	other gains:  the increase of $0.087 million in 2007‑08 Budget from the 2006‑07 estimated outcome is due to a revision of unclaimed lotteries monies held in trust.
•	superannuation expenses:  the decrease of $0.041 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is mainly due to decreased notional superannuation contribution rates.
•	supplies and services:  the increase of $0.087 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is mainly due to rental payments for the new office accommodation.
•	transfer expenses:  the increase of $0.516 million in the 2006‑07 estimated outcome from the original budget and the increase of $4.286 million in the 2007‑08 Budget from the 2006‑07 estimated outcome are due to the reasons noted above under taxes, fees and fines and other gains.
Balance Sheet 
•	cash and cash equivalents:  the increase of $0.214 million in the 2006‑07 estimated outcome from the original budget and the increase of $0.314 million in 2007‑08 Budget from the 2006‑07 estimated outcome reflects the positive cash flow from the Commission’s operating activities.
•	current receivables:  the increase of $0.415 million in the 2006-07 estimated outcome from the original budget is due to an increase in gaming taxation receivable from licensees in July 2007 for the month of June.
•	current payables:  the increase of $0.350 million in the 2006-07 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 2007 for the month of June.
•	current employee benefits:  the increase of $0.362 million in the 2006‑07 estimated outcome from the original budget is due to the ACT Accounting Policy requirement to classify all annual leave and unconditional long service leave as current employee benefits.  The change in policy is attributable to advice received regarding the interpretation of the Australian Accounting Standards.
•	other:  the increase of $0.032 million in the 2006‑07 estimated outcome from the original budget is due to sports bookmakers’ annual licence fees paid in advance as a result of a change in the date that the fees become payable.
•	non-current employee benefits:  
–	the decrease of $0.399 million in the 2006‑07 estimated outcome from the original budget is due to the ACT Accounting Policy requirement to classify all annual leave and unconditional long service leave as current employee benefits.  The change in policy is attributable to advice received regarding the interpretation of the Australian Accounting Standards; and
–	the increase of $0.047 million in 2007‑08 Budget from the 2006‑07 estimated outcome is due to an increase in the number of Commission employees achieving the long service leave threshold.