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, 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.
2006-07 Priorities 
Strategic and operational issues to be pursued in 2006‑07 include:
•	implementing agreed recommendations from reviews of the Lotteries Act 1964, the Pool Betting Act 1964 and the Race and Sports Bookmaking Act 2001; 
•	enhancing the effectiveness of the Commission’s compliance audit program through the implementation of a revised risk‑based model; 
•	enhancing the integrity of the ACT racing industry by investigating and making recommendations on the control of race field intellectual property;
•	enhancing the Commission’s community liaison by further building upon strategic links with its stakeholders; and
•	assessing the findings and recommendations of relevant gambling research projects in relation to compliance and policy issues.

Output Classes
	Total Cost1
	Government Payment for Outputs	
	2005-062
Est. Outcome
$’000	2006-07
Budget
$’000 	2005-06
Est. Outcome
$’000 	2006-07
Budget
$’000 	
Output Class 1:
Gambling Regulation and Compliance 					
Output 1.1: Gambling and Regulation and Compliance					
	3,753	3,827	n/a	4,008	
Notes:
1	Total cost includes depreciation of $20,000 in 2005‑06 and depreciation of $5,000 in 2006‑07.
2	The 2005‑06 estimated outcome is included for comparative purposes only.  This output class is included in the 2006‑07 Budget for the first time.
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 
	2005‑06
Targets	2005-067
Est. Outcome	2006-07
Targets	
Output Class 1: Gambling Regulation and Compliance	
				
a.	Conduct compliance audits of operator activity to detect compliance with legal framework				
- Casino1	n/a	40	90	
- Gaming Machines1	n/a	140	210	
- Bookmakers1	n/a	80	50	
- Minor Lotteries1	n/a	150	70	
- Code of Practice2	n/a	150	0	
Effectively regulate gambling and racing activity for statutory compliance				
				
b.	Conduct revenue audits to ensure correct payment of taxes and fees				
- Casino3	n/a	25	12	
- Gaming Machines4	n/a	82	12	
- Bookmakers5	n/a	16	12	
- Minor Lotteries6	n/a	200	0	
Ensure compliance with statutory payment of taxes and fees				
				
Notes
1	The Commission has reviewed its audit program to better reflect the risks associated with operators in different industry segments.  Therefore, audit activity for some sectors has increased in 2006‑07 compared to 2005‑06 and some decreased.
2	Code of practice audits for 2006‑07 included in other audits where relevant.
3	Revenue audits for the casino for 2006‑07 undertaken as a total package on a monthly basis rather than on individual revenue components.
4	Revenue audits for gaming machines for 2006‑07 undertaken as a total package for the whole of the industry (rather than on a licensee basis) with one whole-of-industry audit conducted every month.
5	Revenue audits for bookmakers for 2006‑07 undertaken as a total package for the whole of the industry (rather than on a licensee basis) with one whole-of-industry audit conducted every month.
6	Previous minor lotteries revenue audits are no longer reported in this context as they were essentially internal audit verifications of fee assessments.
7	The 2005‑06 estimated outcome is included for comparative purposes only.  These accountability indicators are included in the 2006‑07 Budget for the first time.

Changes to Appropriation 
Changes to Appropriation - Departmental						
 	2005-06	2006-07	2007-08	2008-09	2009-10	
Government Payment for Outputs	Est. Outc.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2005-06 Budget	 - 	 - 	 - 	 - 	 - 	
						
2006-07 Budget Policy Adjustments						
Consolidating Human Resources and Finance Functions	 - 	(3)	(6)	(6)	(6)	
Consolidating Information Technology Services	 - 	(42)	(43)	(43)	(43)	
Rationalising Accommodation	 - 	(73)	(146)	(146)	(146)	

2006-07 Budget Technical Adjustments						
Direct Appropriation of GPO	 - 	4,001	4,069	4,137	4,202	
Increased Notional Superannuation Contribution Rates	 - 	125	125	125	125	
						
2006-07 Budget	 - 	4,008	3,999	4,067	4,132	

ACT Gambling and Racing Commission	
Operating Statement	
  2005-06			  2005-06	   2006-07		  2007-08	  2008-09	  2009-10		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
0		Government Payment for Outputs	0	4,008	#	3,999	4,067	4,132		
53,261		Taxes Fees and Fines	51,065	50,044	-2	55,180	57,472	59,498		
3,899		User Charges - ACT Government	3,899	0	-100	0	0	0		
62		Interest	62	62	-	62	62	62		
375		Other Revenue	152	246	62	333	328	437		
25		Resources Received free of charge	25	25	-	25	25	25		
57,622		Total Revenue	55,203	54,385	-1	59,599	61,954	64,154		
		Gains								
0		Total Gains	0	0	-	0	0	0		
57,622		Total Income	55,203	54,385	-1	59,599	61,954	64,154		
		Expenses								
2,312		Employee Expenses	2,312	2,343	1	2,359	2,393	2,424		
392		Superannuation Expenses	392	528	35	531	536	541		
1,029		Supplies and Services	1,029	951	-8	924	953	982		
20		Depreciation and Amortisation	20	5	-75	5	5	5		
53,634		Transfer Expenses	51,215	50,288	-2	55,510	57,797	59,932		
57,387		Total Ordinary Expenses	54,968	54,115	-2	59,329	61,684	63,884		
235		Operating Result	235	270	15	270	270	270		

ACT Gambling and Racing Commission	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/06			as at 30/6/06	as at 30/6/07	   Var	as at 30/6/08	as at 30/6/09	as at 30/6/10		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
1,749		Cash	1,916	2,230	16	2,544	2,858	3,172		
4,233		Receivables	3,964	3,969	..	3,974	3,979	3,984		
19		Other	11	11	-	11	11	11		
6,001		Total Current Assets	5,891	6,210	5	6,529	6,848	7,167		
		Non Current Assets								
16		Property, Plant and Equipment	10	15	50	20	25	30		
16		Total Non Current Assets	10	15	50	20	25	30		
6,017		TOTAL ASSETS	5,901	6,225	5	6,549	6,873	7,197		
		Current Liabilities								
4,160		Payables	3,929	3,929	-	3,929	3,929	3,929		
370		Employee Benefits	383	390	2	401	412	423		
104		Other	105	105	-	105	105	105		
4,634		Total Current Liabilities	4,417	4,424	..	4,435	4,446	4,457		
		Non Current Liabilities								
447		Employee Benefits	424	463	9	506	549	592		
447		Total Non Current Liabilities	424	463	9	506	549	592		
5,081		TOTAL LIABILITIES	4,841	4,887	1	4,941	4,995	5,049		
936		NET ASSETS	1,060	1,338	26	1,608	1,878	2,148		
		REPRESENTED BY FUNDS EMPLOYED								
936		Accumulated Funds	1,060	1,338	26	1,608	1,878	2,148		
936		TOTAL FUNDS EMPLOYED	1,060	1,338	26	1,608	1,878	2,148		

ACT Gambling and Racing Commission	
Cash Flow Statement	
  2005-06			  2005-06	   2006-07		  2007-08	  2008-09	  2009-10		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
0		Cash from Government for Outputs	0	4,008	#	3,999	4,067	4,132		
53,636		Taxes, Fees and Fines	51,217	50,290	-2	55,513	57,800	59,935		
3,899		User Charges	3,899	0	-100	0	0	0		
62		Interest Received	62	62	-	62	62	62		
114		Other Revenue	114	107	-6	103	106	109		
57,711		Operating Receipts	55,292	54,467	-1	59,677	62,035	64,238		
		Payments								
2,630		Related to Employees	2,630	2,817	7	2,836	2,875	2,911		
1,009		Related to Supplies and Services	1,009	931	-8	901	930	959		
114		Other	114	107	-6	103	106	109		
53,634		Territory Receipts to Government	51,215	50,288	-2	55,513	57,800	59,935		
57,387		Operating Payments	54,968	54,143	-2	59,353	61,711	63,914		
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		
1,435		CASH AT BEGINNING OF REPORTING PERIOD	1,602	1,916	20	2,230	2,544	2,858		
1,749		CASH AT THE END OF THE REPORTING PERIOD	1,916	2,230	16	2,544	2,858	3,172		

ACT Gambling and Racing Commission	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/06			as at 30/6/06	as at 30/6/07	   Var	as at 30/6/08	as at 30/6/09	as at 30/6/10		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
701		Opening Balance	823	1,060	29	1,338	1,608	1,878		
		Accumulated Funds								
0		Net Effect of a Correction of an Error	2	0	-100	0	0	0		
235		Operating Result for the Period	235	270	15	270	270	270		
		Reserves								
235		Total Income And Expense For The Period	237	270	14	270	270	270		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
0		Inc/Dec in Net Assets due to Admin Restructure	0	8	#	0	0	0		
936		Closing Balance	1,060	1,338	26	1,608	1,878	2,148		
Notes to the Budget Statements 
Significant variations are as follows:
Operating Statement 
•	government payments for outputs:  the increase of $4.008 million in the 2006‑07 budget from the 2005‑06 estimated outcome is due to the Commission being directly appropriated from 2006‑07;
•	user charges – ACT Government:  the decrease of $3.899 million in the 2006‑07 budget from the 2005‑06 estimated outcome is due to the direct appropriation to the Commission mentioned above;
•	taxes, fees and fines:  
–	the decrease of $2.196 million in the 2005‑06 estimated outcome from the original budget is due to a decrease in gaming activity in Victorian lotteries, a reduction in the licence fee payable by ACTTAB and a reduction in gaming machine tax following a one-off larger GST deduction associated with a change in tax rates as at 1 July 2005;
–	the decrease of $1.021 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to an expected reduction in gaming activity from the impact of the introduction of smoking bans effective from 1 December 2006;
•	other revenue:  the decrease of $0.223 million in the 2005‑06 estimated outcome from the original budget and the increase of $0.094 million in 2006‑07 Budget from the 2005‑06 estimated outcome are due to an updated calculation of unclaimed lotteries monies held in trust;
•	transfer expenses:  the decrease of $2.419 million in the 2005‑06 estimated outcome from the original budget and the decrease of $0.927 million in the 2006‑07 Budget from the 2005‑06 estimated outcome are due to the reasons noted above under taxes, fees and fines and other revenue;
•	superannuation expense:  the increase of $0.136 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to increased notional superannuation contribution rates; and
•	supplies and services:  the decrease of $0.078 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to consolidating human resource finance functions, consolidating information technology services, and rationalising accommodation.
Balance Sheet 
•	cash:  the increase of $0.167 million in the 2005‑06 estimated outcome from the original budget and the increase of $0.314 million in the 2006‑07 Budget from the 2005‑06 estimated outcome reflects the positive cash flow from the Commission’s operating activities.