ACT GAMBLING AND RACING COMMISSION
Purpose
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.
2011-12 Priorities
Strategic and operational issues to be pursued in 2011-12 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;
•	assessing the findings and recommendations of relevant gambling research projects in relation to compliance and policy issues; and
•	implementing the problem gambling assistance services under the Problem Gambling Assistance Fund Levy.

Estimated Employment Level
2009-10
Actual Outcome		2010-11
Budget
	2010-11
Est. Outcome	2011-12
Budget
	
27	Staffing (FTE) 1	33	27	33	
Note:
1.	The decrease in staffing numbers from the 2010-11 Budget to the 2010-11 Estimated Outcome is due to several staff members utilising part-time employment and the time lag between resignations and the employment of new staff.  The increase in staffing numbers from the 2010-11 Estimated Outcome to the 2011-12 Budget is due to the expectation of the Commission returning to full staffing level.

Strategic Objectives and Indicators
Strategic Objective 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 1:  Average Number of Breaches Detected per Audit

Strategic Objective 2
Increase the Accuracy of Returns by Operators for Gambling Related Taxes, Levies,
Fees and Fines on Behalf of the ACT Government.
The Commission receives returns from operators along with payments for gambling related taxes, levies, 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.
Strategic Indicator 2:   Reconciled Gambling Taxation Returns – Variations

Output Classes
	Total Cost1	Government Payment for Outputs	
	2010-11
Est. Outcome
$’000	2011-12
 Budget
$’000	2010-11
Est. Outcome
$’000	2011-12
Budget
$’000	
Output Class 1: 
Gambling Regulation and Compliance	4,251	5,445	4,333	4,297	
Output 1.1:  Gambling Regulation and Compliance	4,251	5,445	4,333	4,297	
Note:
1.	Total cost includes depreciation/amortisation of $0.047 million in 2010‑11 and $0.084 million in 2011-12 and excludes transfer expense in both years.  From 2011‑12 total cost includes expenses associated with the Problem Gambling Assistance Fund Levy of $1.064 million.
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, levies, fees and charges.

Accountability Indicators
	2010-11
Targets 	2010-11
Est. Outcome	2011-12
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 Lotteries1	90	90	60	
Effectively regulating gambling and racing activity for statutory compliance	
b.	Conduct revenue audits to ensure correct payment of taxes, levies and fees 				
­	Casino	12	12	12	
­	Gaming Machines	12	12	12	
­	Bookmakers	12	12	12	
Ensure compliance with statutory payments of taxes, levies and fees	
Note:
1.	The reduction in minor lottery audits from 2010 -11 estimated outcome to 2011-12 targets is due to the lower level of risk assessed for this type of activity.

Changes to Appropriation
Changes to Appropriation - Controlled						
 	2010-11	2011-12	2012-13	2013-14	2014-15	
Government Payment for Outputs	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2010-11 Budget	4,336	4,396	4,441	4,501	4,501	
						
2011-12 Budget Policy Adjustments						
Revised Wage Parameters	 - 	(3)	35	36	36	
Savings Initiative	 - 	(2)	(5)	(5)	(5)	
						
2011-12 Budget Technical Adjustments						
Revised Indexation Parameters	 - 	6	6	6	78	
Revised Superannuation Contributions	(3)	(5)	(9)	(26)	(43)	
Revision of Appropriation Required	 - 	(95)	(102)	(104)	(104)	
						
2011-12 Budget	4,333	4,297	4,366	4,408	4,463	

ACT Gambling and Racing Commission
Operating Statement
  2010-11			  2010-11	   2011-12		  2012-13	    2013-14	  2014-15		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
4,336		Government Payment for Outputs	4,333	4,297	-1	4,366	4,408	4,463		
55,007		Taxes Fees and Fines	55,190	56,316	2	57,778	59,263	60,787		
192		Interest	235	131	-44	159	188	217		
75		Other Revenue	75	1,139	#	1,165	1,192	1,220		
25		Resources Received Free of Charge	25	25	-	25	25	25		
59,635		Total Revenue	59,858	61,908	3	63,493	65,076	66,712		
		Gains								
143		Other Gains	143	147	3	150	154	158		
143		Total Gains	143	147	3	150	154	158		
59,778		Total Income	60,001	62,055	3	63,643	65,230	66,870		
		Expenses								
2,709		Employee Expenses	2,677	2,768	3	2,829	2,864	2,901		
426		Superannuation Expenses	421	414	-2	407	396	385		
1,104		Supplies and Services	1,104	2,177	97	2,218	2,263	2,320		
47		Depreciation and Amortisation	47	84	79	84	84	84		
2		Borrowing Costs	2	2	-	2	2	2		
55,004		Transfer Expenses	55,187	56,314	2	57,775	59,260	60,784		
59,292		Total Ordinary Expenses	59,438	61,759	4	63,315	64,869	66,476		
486		Operating Result	563	296	-47	328	361	394		
486		Total Comprehensive Income	563	296	-47	328	361	394		

ACT Gambling and Racing Commission
Balance Sheet
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/11			as at 30/6/11	as at 30/6/12	   Var	as at 30/6/13	as at 30/6/14	as at 30/6/15		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
5,590		Cash and Cash Equivalents	2,294	2,722	19	3,174	3,657	4,173		
4,868		Receivables	3,913	3,918	..	3,923	3,928	3,933		
1		Other	1	1	-	1	1	1		
10,459		Total Current Assets	6,208	6,641	7	7,098	7,586	8,107		
		Non Current Assets								
38		Property, Plant and Equipment	35	47	34	47	57	57		
320		Intangibles	325	253	-22	181	109	37		
358		Total Non Current Assets	360	300	-17	228	166	94		
10,817		TOTAL ASSETS	6,568	6,941	6	7,326	7,752	8,201		
		Current Liabilities								
4,833		Payables	3,838	3,838	-	3,838	3,838	3,838		
20		Finance Leases	21	8	-62	23	8	23		
804		Employee Benefits	747	768	3	780	792	804		
160		Other	141	141	-	141	141	141		
5,817		Total Current Liabilities	4,747	4,755	..	4,782	4,779	4,806		
		Non Current Liabilities								
0		Finance Leases	3	23	667	3	23	3		
187		Employee Benefits	127	176	39	226	274	322		
187		Total Non Current Liabilities	130	199	53	229	297	325		
6,004		TOTAL LIABILITIES	4,877	4,954	2	5,011	5,076	5,131		
4,813		NET ASSETS	1,691	1,987	18	2,315	2,676	3,070		
		REPRESENTED BY FUNDS EMPLOYED								
4,808		Accumulated Funds	1,686	1,982	18	2,310	2,671	3,065		
5		Reserves	5	5	-	5	5	5		
4,813		TOTAL FUNDS EMPLOYED	1,691	1,987	18	2,315	2,676	3,070		

ACT Gambling and Racing Commission
Cash Flow Statement
  2010-11			  2010-11	   2011-12		  2012-13	    2013-14	  2014-15		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
4,336		Cash from Government for Outputs	4,333	4,297	-1	4,366	4,408	4,463		
55,007		Taxes, Fees and Fines	55,190	56,316	2	57,778	59,263	60,787		
192		Interest Received	235	131	-44	159	188	217		
331		Other Revenue	331	1,402	324	1,434	1,465	1,497		
59,866		Operating Receipts	60,089	62,146	3	63,737	65,324	66,964		
		Payments								
2,640		Related to Employees	2,648	2,699	2	2,767	2,804	2,841		
426		Related to Superannuation	421	413	-2	407	396	385		
1,081		Related to Supplies and Services	1,081	2,155	99	2,195	2,240	2,297		
2		Borrowing Costs	2	2	-	2	2	2		
113		Other	113	116	3	119	119	119		
55,007		Territory Receipts to Government	55,190	56,316	2	57,778	59,263	60,787		
59,269		Operating Payments	59,455	61,701	4	63,268	64,824	66,431		
597		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	634	445	-30	469	500	533		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Payments								
10		Purchase of Property, Plant and Equipment and Capital Works	10	10	-	10	10	10		
156		Purchase of Land and Intangibles	300	0	-100	0	0	0		
166		Investing Payments	310	10	-97	10	10	10		
-166		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	-310	-10	97	-10	-10	-10		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Payments								
0		Distributions to Government	3,900	0	-100	0	0	0		
7		Repayment of Finance Lease	7	7	-	7	7	7		
7		Financing Payments	3,907	7	-100	7	7	7		
-7		NET CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES	-3,907	-7	100	-7	-7	-7		
424		NET INCREASE/ (DECREASE) IN CASH HELD	-3,583	428	112	452	483	516		
5,166		CASH AT BEGINNING OF REPORTING PERIOD	5,877	2,294	-61	2,722	3,174	3,657		
5,590		CASH AT THE END OF THE REPORTING PERIOD	2,294	2,722	19	3,174	3,657	4,173		

ACT Gambling and Racing Commission
Statement of Changes in Equity
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/11			as at 30/6/11	as at 30/6/12		as at 30/6/13	as at 30/6/14	as at 30/6/15		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Opening Equity								
4,322		Opening Accumulated Funds	5,023	1,686	-66	1,982	2,310	2,671		
5		Opening Asset Revaluation Reserve	5	5	-	5	5	5		
4,327		Balance at the Start of the Reporting Period	5,028	1,691	-66	1,987	2,315	2,676		
		Comprehensive Income								
486		Operating Result for the Period	563	296	-47	328	361	394		
486		Total Comprehensive Income	563	296	-47	328	361	394		
0		Total Movement In Reserves	0	0	-	0	0	0		
		Transactions Involving Owners Affecting Accumulated Funds								
0		Capital Distributions	-3,900	0	100	0	0	0		
0		Total Transactions Involving Owners Affecting Accumulated Funds	-3,900	0	100	0	0	0		
		Closing Equity								
4,808		Closing Accumulated Funds	1,686	1,982	18	2,310	2,671	3,065		
5		Closing Asset Revaluation Reserve	5	5	-	5	5	5		
4,813		Balance at the End of the Reporting Period	1,691	1,987	18	2,315	2,676	3,070		

Notes to the Budget Statements 
Significant variations are as follows:
Operating Statement 
•	taxes, fees and fines:
–	the increase of $0.183 million in the 2010‑11 estimated outcome from the original budget is due to additional ACTTAB revenue; and
–	the increase of $1.126 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is mainly due to an increase in activity for gaming machines ($0.490 million), interstate lotteries ($0.435 million), regulatory fees ($0.081 million) and the casino ($0.062 million).
•	other revenue:  the increase of $1.064 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to the commencement of the Problem Gambling Assistance Levy from July 2011.

•	
interest:
–	the increase of $0.043 million in the 2010‑11 estimated outcome from the original budget is due to higher than anticipated interest rates and higher cash balances in the early part of the financial year; and
–	the decrease of $0.104 million in the 2011-12 Budget from the 2010‑11 estimated outcome is due to lower cash balances as surplus funds were returned to the Territory.
•	other revenue:  the increase of $1.064 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to the commencement of the Problem Gambling Assistance Levy from July 2011.
•	supplies and services:  the increase of $1.073 million in the 2011‑12 Budget from the 2010-11 estimated outcome is mainly due to the commencement of expenditure out of the Problem Gambling Assistance Levy collected from July 2011 ($1.064 million).
•	depreciation and amortisation:  the increase of $0.037 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to the depreciation on the new gaming machine database system.
•	transfer expenses:
–	the increase of $0.183 million in the 2010‑11 estimated outcome from the original budget is due to the reasons noted above under taxes, fees and fines; and
–	the increase of $1.127 million in the 2011-12 Budget from the 2010‑11 estimated outcome is due to the reasons noted above under taxes, fees and fines.
Balance Sheet 
•	cash and cash equivalents:  
–	the decrease of $3.296 million in the 2010‑11 estimated outcome from the original budget is mainly due to the return of surplus funds ($3.9 million) to the Territory and the flow-on effect of the 2009-10 audited results; and
–	the increase of $0.428 million in the 2011-12 Budget from the 2010-11 estimated outcome reflects anticipated positive cash flows from operating activities.
•	receivables:  the decrease of $0.955 million in the 2010‑11 estimates from the original budget is mainly due to an estimated decrease in gaming taxation receivables.
•	intangibles:  the decrease of $0.072 million in the 2011-12 Budget from the 2010‑11 estimated outcome is due to the amortisation of the new gaming machine database system.
•	payables:  the decrease of $0.995 million in the 2010‑11 estimated outcome from original budget is mainly due to lower taxation receipts to be on-passed due to an estimated decrease in gaming taxation receivables.
•	current and non current employee benefits:  
–	the decrease of $0.117 million in the 2010‑11 estimated outcome from the original budget is mainly due to the increase in the number of employees utilising both annual leave and long service leave benefits; and
–	the increase of $0.070 million in the 2011-12 Budget from the 2010-11 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.