SA LOTTERIES

untitledANNUAL Report 2005-06
FACT 2 - SCRATCH HEREFACT 1 - SCRATCH HERE FACT 3 - SCRATCH HERE
SA Lotteries’ 2005-06 Annual Report highlights our achievements and significant contribution to the South Australian community. SA Lotteries returns approximately 96 cents of every dollar spent by players to the South Australian community in some form. For more good news, see inside. Annual-report-2005-06
$209 MILLION
$85 MILLION TOTALLING $1.7 BILLION SINCE 1967
Contribution to the Hospitals Fund:
$348 MILLION
ANNUAL Report 2005-06
FACT 2 - SCRATCH HEREFACT 1 - SCRATCH HERE FACT 3 - SCRATCH HERE
SA Lotteries’ 2005-06 Annual Report highlights our achievements and significant contribution to the South Australian community. SA Lotteries returns approximately 96 cents of every dollar spent by players to the South Australian community in some form. For more good news, see inside. Annual-report-2005-06
$209 MILLION
$85 MILLION TOTALLING $1.7 BILLION SINCE 1967
Contribution to the Hospitals Fund:
$348 MILLION
To benefit the community of South Australia.
To create prosperity through the responsible promotion and conduct of lotteries.
OUR VISIONOUR VISION
OUR MISSIONOUR MISSION
Reducing our impact on the environment SA Lotteries is committed to adopting sound environmental practices in all operations to reduce its impact on the environment. SA Lotteries 2005–06 annual report is printed to ISO 14001 International Environmental Standards.
To be environmentally responsible is our choice: we believe it is an essential and worthwhile choice.
In the promotion and conduct of lotteries and the way we conduct our business, we will operate with: • Integrity • Responsibility • Respect.
To promote, conduct and distribute lotteries games in a responsible manner to generate wealth for the South Australian community.
To be a corporately responsible and respected organisation that has a broad base of community support.
To improve productivity by optimising the use of assets and pursuing the most effective work practices.
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OUR VALUESOUR VALUES OUR GOALSOUR GOALS
DO NOT CREASE. Mark important facts and fi gures using pencil or dark blue pen. DO NOT CREASE. Mark important facts and fi gures using pencil or dark blue pen. IMPORTANT - SA Lotteries 2005-06 Annual Report IMPORTANT - SA Lotteries 2005-06 Annual Report
CONTENTS
REPORT
SALES Achieved sales of $348 million.
PRIZES Paid $209 million in prize money, taking the total since 1967 to $3.6 billion.
WINNERS Congratulated 92 South Australian Division One winners including one multi-millionaire and 10 millionaires.
HOSPITALS Contributed $85 million to the Hospitals Fund, increasing the total returned since SA Lotteries was established in 1967 to $1.7 billion.
AGENT COMMISSION Paid $25.8 million in commission to more than 530 agents across the State.
SUPPLIERS Paid $9.3 million to 263 South Australian suppliers.
RECREATION & SPORT Contributed $0.2 million to the Recreation and Sport Fund, taking the total returned since the fund was established in 1987 to $7.8 million.
TICKETS SOLD Sold 78 million tickets in SA Lotteries games, providing South Australians with the opportunity to participate in their favourite lottery game.
STRATEGIC PLAN Aligned SA Lotteries’ Strategic Plan 2006-2010 with South Australia’s Strategic Plan.
AT A GLANCE
The Honourable Michael Wright, MP Minister for Administrative Services and Government Enterprises Parliament House, Adelaide SA 5000
We have pleasure in presenting the annual report of the Lotteries Commission of South Australia in accordance with Section 18B of the State Lotteries Act 1966, as amended, for the year ended 30 June 2006.
The Commission distributed $85.3 million in the form of dividends, taxation and unclaimed prize moneys to the Govern- ment of South Australia in the 2005-06 fi nancial year. The Hospitals Fund received $85.1 million and the Recreation and Sport Fund received $181 000.
Over the past year the wider community of South Australia has also been the recipient of $209 million in prize money, SA Lotteries agents have received commissions amounting to $25.8 million, and $9.3 million has been paid to state- based suppliers of State Lotteries.
In the past 12 months 59 per cent of sales were derived from Saturday Lotto, Monday and Wednesday Lotto, Oz Lotto, Powerball, Super 66 and The Pools which are games that are pooled with lottery organisations in other Australian States. These pooled games provide an opportunity for South Australians to access increased prize money and larger jackpots.
Our agents are the face of our organisation and deal with our customers on a daily basis. On 30 June 2006 we had 535 retailers and licensed outlets selling our games. The majority are privately owned businesses, all of whom provide friendly and effi cient service.
A key risk to future sales is the proposal by the Independent Gambling Authority (IGA) to phase out Keno from retail agencies. This would impact adversely on our agents with small privately owned retail outlets. We believe any action by the IGA in this regard would have detrimental ramifi cations for small business in South Australia generally.
Sales continue to grow on the world wide web. The internet provides an opportunity for the distribution of lotteries games that allow for both customer choice and convenience of purchase. The internet is also used by unlicensed and unscrupulous organisations which compromise the reputation of government-licensed lotteries operators. As we expect our customers will increasingly wish to buy our games over the internet, it is incumbent on us to ensure that a safe and secure environment for internet sales is created. In this context, the barring of access to our games by minors is of particular importance to us.
SA Lotteries’ online lotteries system is due for replacement in 2009-10. The distribution of our lottery games must meet changing customer expectations while retaining high operational effi ciencies. The timely implementation of the new online lotteries system, including the communication infrastructure, is vital to achieving future revenue projections.
After serving nine years on the Board, including a term as Chairman of the Audit Committee, Mr Peter LeMessurier has retired from the Commission. The Board is indebted to Mr LeMessurier for his valuable contribution to the development of SA Lotteries. In May 2006, Mr Wayne Jackson, a former Chief Executive of the Australian Football League, was appointed to the Commission. Mr Jackson also has a background in leading commercial corporations, often through periods of sustained growth and change. We welcome Mr Jackson and know he will make a strong contribution on the Board.
We recognise that SA Lotteries is a ‘people organisation’. We would like to thank our staff and agents for their commitment and energy and our customers for their loyalty – without which we could not function as a successful organisation.
CHAIRMAN AND CHIEF EXECUTIVE’S REPORT
june roache chief executive
‘The Hospitals Fund received $85.1 million ... the wider community of South Australia has also been the recipient of $209 million in prize money.’
wayne jackson commission member
suzanne mackenzie commission member
june roache chief executive
stephen shirley commission member
chris crago commission member
30 september 2006
P O
W ER
FU L
P ER
$3 0 0 0 0 0 0
1 1 1 1 1 1
2 2 2 2 2 2
3 3 3 3 3 3
4 4 4 4 4 4
5 5 5 5 5 5
6 6 6 6 6 6
7 7 7 7 7 7
8 8 8 8 8 8
9 9 9 9 9 9
0 0 0 0 0 0
1 1 1 1 1 1
2 2 2 2 2 2
3 3 3 3 3 3
4 4 4 4 4 4
5 5 5 5 5 5
6 6 6 6 6 6
7 7 7 7 7 7
8 8 8 8 8 8
9 9 9 9 9 9
IN SALES IN SALES IN SALES IN SALES IN SALES
sa government objective
Growing Prosperity Sales per Capita $299.02 $291.28
Growing Prosperity EBITDA per FTE $346 000 $411 000
Growing Prosperity Online Lottery System Down Time: Central System
0.01% 0.01%
0.01% 0.02%
180 000 199 473
925 000 1 083 727
Improving Wellbeing Return to Government $84.5 million $85.3 million
Growing Prosperity Total Operating Expenses as % of Gross Sales *
7.6% 6.7%
Growing Prosperity Operating Expenses per FTE $333 000 $313 000
Growing Prosperity Average Full-Time Equivalents employed during the year
82.43 74.36
year ended 30 june 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
gross sales
Lotto – Saturday 132 388 135 176 130 825 129 603 123 632 123 023 120 304 115 074 113 220 107 314
Lotto – Mon & Wed* 35 936 40 670 41 706 28 931 23 380 21 468 21 292 18 756 17 635 16 472
Oz Lotto 16 495 14 641 15 467 16 575 17 127 17 133 16 662 16 977 19 590 15 027
Powerball 46 519 42 248 44 760 51 379 44 526 46 438 34 288 35 200 27 223 25 228
Keno 76 581 73 821 70 425 67 155 64 838 61 689 68 620 69 308 71 818 71 961
Instant Scratchies 38 383 40 343 39 812 39 864 37 920 37 099 30 866 28 860 25 833 25 359
Super 66 1 228 1 333 1 479 1 662 1 828 2 027 2 379 2 677 2 739 2 718
The Pools 558 586 622 742 605 716 607 609 566 570
total gross sales 348 088 348 818 345 096 335 911 313 856 309 593 295 018 287 461 278 624 264 649
cost of sales
Agents’ commission 25 755 25 795 25 443 24 694 23 100 22 707 21 853 20 692 20 104 19 192
Prizes 209 439 207 172 207 886 202 336 187 217 180 604 174 519 173 982 169 695 162 978
% of gross sales 60.2% 59.4% 60.2% 60.2% 59.7% 58.3% 59.2% 60.5% 60.9% 61.6%
Gambling tax on NGR# 56 846 58 074 56 256 54 766 51 922 51 480 – – – –
% of gross sales 16.3% 16.6% 16.3% 16.3% 16.5% 16.6% N.A. N.A. N.A. N.A.
GST on NGR # 12 604 12 877 12 474 12 143 11 513 11 415 – – – –
% of gross sales 3.6% 3.7% 3.6% 3.6% 3.7% 3.7% N.A. N.A. N.A. N.A.
total cost of sales 304 644 303 918 302 059 293 939 273 752 266 206 196 372 194 674 189 799 182 170
gross margin 43 444 44 900 43 037 41 972 40 104 43 387 98 646 92 787 88 825 82 479
Other Revenue 7 039 7 294 6 944 6 878 6 204 7 171 6 520 5 117 5 319 5 171
total income 50 483 52 194 49 981 48 850 46 308 50 558 105 166 97 904 94 144 87 650
operating expenses^ 23 249 25 978 24 926 24 421 22 756 20 856 20 297 17 151 16 435 15 453
% of gross sales 6.7% 7.4% 7.2% 7.3% 7.3% 6.7% 6.9% 6.0% 5.9% 5.8%
profi t before income tax equivalent
27 234 26 216 25 055 24 429 23 552 29 702 84 869 80 753 77 709 72 197
% of gross sales 7.8% 7.5% 7.3% 7.3% 7.5% 9.6% 28.8% 28.1% 27.9% 27.3%
return to government
Gambling tax (total) 56 888 58 412 56 256 54 766 51 922 51 480 – – – –
Income tax equivalent 8 170 7 799 7 516 7 542 7 066 10 099 31 336 31 375 28 589 26 431
Dividend ## 18 956 22 906 17 869 17 673 15 369 15 689 53 128 50 028 48 088 44 172
Unclaimed prizes 1 291 1 839 1 639 1 551 1 656 1 515 1 535 1 279 1 301 1 572
85 305 90 956 83 280 81 532 76 013 78 783 85 999 82 682 77 978 72 175
% of gross sales 24.5% 26.1% 24.1% 24.3% 24.2% 25.4% 29.2% 28.8% 28.0% 27.3%
Sales per Capita Based on South Australian adult (18+) population. EBITDA Earnings Before Interest, Tax, Depreciation and Amortisation. FTE Average Full-Time Equivalent employee numbers during the year. MTBF Mean number of Transactions Between Failures. *Total Operating Expenses include interest and depreciation expenses. Return to Government Actual 2005-06 includes distribution of Unclaimed Prizes ($1.3 million). The Target does not include Unclaimed Prizes.
*Lotto Monday and Wednesday replaced SA Lotto from 27 April 2006. SA Lotto twice weekly draws on Monday/Wednesday commenced November 2003. # State Gambling Tax and GST were introduced on 1 July 2000 and are levied on Net Gambling Revenue (NGR = Gross sales less monetary prizes). State Gambling Tax at the rate of 41% of NGR is paid to the Hospitals Fund/Recreation and Sport Fund and the GST at the rate of 9.09% of NGR is paid to the Australian Taxation Offi ce. Income Tax Equivalent included Sales Tax Equivalent for the period to 2000. GST is now included in cost of sales (since 2001) – previously included in operating expenses. ## Includes Special Dividend of $6 527 000 in 2005 resulting from proceeds on sale of SA Lotteries’ former Head Offi ce in Rundle Mall.
CORPORATE SCORECARD
TEN YEAR FINANCIAL SUMMARY
Corporate governance is the process by which SA Lotteries is directed and managed. It infl uences how SA Lotteries’ corporate goals are established and achieved and how business risks are assessed and monitored. SA Lotteries’ corporate governance structures create business value and ensure that accountability and control systems operate relative to risk.
The following corporate governance practices were in place throughout the fi nancial year:
The Commission membership as at 30 June 2006 comprised:
Name Mr H J Ohff, FIEAust, CPEng, BA (Hons) Position Presiding Member Expertise Engineering
Name Ms S J Mackenzie, B Comm (Accounting), LLB (Hons) Position Member Expertise Law
Name Ms C M Crago, Ass Dip (Bus), BBus (Mktg) Position Member Expertise Marketing
Name Mr S K Shirley, BEc, FCA, CPA, FTIA Position Member Expertise Accounting
Name Mr W R Jackson, BEc, FASA Position Member Expertise Business Management Consultant
ROLE OF THE SHAREHOLDER For the period 1 July 2005 to 12 April 2006 the Honourable Kevin Foley MP, as Treasurer, was the appointed Minister responsible for SA Lotteries. Effective from 13 April 2006, the Honourable Michael Wright MP was appointed the Minister responsible for SA Lotteries, under the portfolio of Administrative Services and Government Enterprises. The Minister’s other portfolios are Industrial Relations and Recreation, Sport and Racing.
SA Lotteries aims to ensure that the shareholder, the Government of South Australia, is informed of all major developments affecting SA Lotteries’ state of affairs via: • Written reports and meetings with
the Minister. • Submission of SA Lotteries’ annual
operating and capital budgets to the Government for approval.
• Attendance by a Government observer at Commission and Audit Committee meetings.
• Distribution of the annual report to the shareholder.
• The Auditor-General’s annual report to Parliament, which includes SA Lotteries.
SA Lotteries ensures compliance with all formal directions issued by the responsible Minister. On 1 March 2006, the Treasurer issued one such direction relating to the appointment of a proxy Government observer to attend Commission meetings and receive Commission papers.
THE COMMISSION The Commission is established under the State Lotteries Act 1966 (as amended). Responsible for the governance of SA Lotteries, the Commission’s established processes provide strategic guidance for management towards achievement of corporate goals.
In conjunction with the management team, the Commission strives to achieve best practice in meeting these goals.
COMPOSITION OF THE COMMISSION In accordance with the State Lotteries Act, the Commission is to consist of not less than three or more than fi ve members appointed by the Governor of South Australia, one of whom shall be nominated by the Governor as the Presiding Member of the Commission. The Commission comprises non- executive members.
A member is appointed for a term of offi ce not exceeding fi ve years determined by the Governor. On the expiration of the term of offi ce as a member, a member shall be eligible for re-appointment.
In 2005-06, the term of three Commission Members expired: effective from 1 April 2006, Hans Ohff was re-appointed as Presiding Member for a term of two years; effective from 20 April 2006, Suzanne Mackenzie was re-appointed as a Commission Member for a term of three years. Peter LeMessurier’s term as a Commission Member expired on 31 March 2006. Effective from 25 May 2006, Wayne Jackson was appointed as a Commission Member for a term of three years.
The Governor may, by notice in writing served on a member, suspend a member from offi ce for any period not exceeding the balance of the term of offi ce, or re- move a member from offi ce, on grounds of misconduct or incapacity to perform the duties or functions of the position.
COMMISSION FEES Generally, the Commission meets monthly. Remuneration for a member is $18 700 per annum, plus an attraction and retention allowance of $2200 per annum. The Presiding Member receives $27 200 per annum, plus an attraction and retention allowance of $2200 per annum.
Further details of members’ remuneration payments are set out in Note 10 to the Annual Financial Report.
AUDIT COMMITTEE The role of the Audit Committee is to assist the Commission in fulfi lling its responsibilities in relation to the identifi cation of areas of signifi cant business risks by: • Advising on the establishment and
maintenance of a framework for internal control for the management of SA Lotteries.
• Monitoring the quality and reliability of fi nancial information prepared for use by the Commission in determining policies or for inclusion in fi nancial statements.
The Audit Committee has a formal charter incorporating its broad functions as follows: • Reviewing the General Purpose
Financial Report prior to its approval by the Commission to ensure that the Report presents fairly, in accordance with the Treasurer’s Instructions promulgated under the provisions of the Public Finance and Audit Act 1987, applicable Accounting Standards and other mandatory professional reporting requirements applicable in Australia, the fi nancial position of the Lotteries Commission of South Australia as at 30 June, its fi nancial performance and its operations cash fl ows for the year then ended; and ensuring that internal controls over fi nancial reporting have been effective throughout the reporting period.
CORPORATE GOVERNANCE
• Liaising with SA Lotteries’ external auditors, the Auditor-General’s Department, on all matters concerning the outcome of annual audits of the Lotteries Commission of South Australia.
• Regular reviewing of the adequacy of the accounting, internal auditing, reporting and other fi nancial management systems and practices of the Lotteries Commission of South Australia or any other matter the Commission and/or Audit Committee request.
The internal and external auditors are invited to Audit Committee meetings at the discretion of the Committee. KPMG were the appointed internal auditors for the 2005-06 fi nancial year. The Auditor- General’s Department is SA Lotteries’ external auditor.
In accordance with its charter, the Audit Committee comprises three Commission Members. During the year membership comprised:
Mr Stephen Shirley Chair Ms Chris Crago Member Mr Peter LeMessurier Member (1 July 2005 to 31 March 2006) Mr Wayne Jackson Member (from 6 June 2006)
Members of the Audit Committee receive a fee of $2805 per annum. The Chair of the Committee receives a fee of $4080 per annum.
INTERNAL CONTROL FRAMEWORK The Commission acknowledges that it is responsible for the internal control framework, but recognises that a cost effective internal control system will not preclude all errors and irregularities. To assist, the Commission has instigated an internal control framework that can be described under fi ve headings:
Financial reporting – There is a comprehensive budgeting system with an annual budget approved by the Commission prior to submission to the Government. Monthly actual results are reported against budget, and forecasts for the year are prepared regularly.
Quality and integrity of personnel – SA Lotteries’ employees are bound by the Code of Conduct for South Australian Public Sector Employees.
ATTENDANCE AT MEETINGS The number of meetings held during the year, together with participation by each member, is detailed within the table below.
COMMISSION RELATIONSHIP WITH MANAGEMENT The Chief Executive is accountable to the Commission for the achievement of SA Lotteries’ corporate goals.
In accordance with the State Lotteries Act, the Commission may delegate to any offi cer of the Commission any of the powers, duties, functions and authorities of the Commission. To this end, the Commission clearly defi nes management accountabilities through approved management operating authorities.
Commission members are invited to observe or participate in the evaluation process for all tenders greater than $1 100 000.
Operating division controls – Financial controls and procedures, including information systems controls are in place. A Commission questionnaire confi rms compliance with these procedures to ensure sound principles of corporate governance and accountability.
Functional specialty reporting – SA Lotteries has identifi ed performance measures, which are regularly reported within a balanced corporate scorecard.
Capital investment appraisal – SA Lotteries has clearly defi ned guidelines for capital expenditure. These include levels of authority, annual budgets, detailed cost benefi t analysis and post-implementation reviews for large expenditure items.
CORPORATE POLICY FRAMEWORK SA Lotteries maintains a corporate policy framework comprising more than 30 policies that are annually reviewed by the Audit Committee and approved by the Commission. Congruent with the corporate policies are divisional policies, procedures and guidelines that are reviewed by management on an ongoing basis to refl ect changes in business operations.
FREEDOM OF INFORMATION SA Lotteries complied with its requirements under the Freedom of Information Act 1991 and ensured appropriate and timely action was taken when access to information was requested. There were four requests for information during the fi nancial year. An FOI Information Statement is published on SA Lotteries’ website.
RISK MANAGEMENT PROGRAM Risks in relation to the protection of SA Lotteries’ employees, assets, earnings, liabilities and the public were reassessed during the year. New risks resulting from changes in operations were identifi ed and included as part of the Risk Management program.
Risk assessment was carried out on an ongoing basis during the year and a formal annual review was completed.
CRISIS PLANNING In 2005-06 SA Lotteries reviewed and updated the Crisis Plan, ensuring that business activities and employees were prepared to manage a crisis if and when one should eventuate.
FRAUD SA Lotteries has a Fraud Control Policy in place to minimise exposure to fraud by identifying potential risk areas. Any suspected incidents of fraud are investigated immediately. There was one instance of alleged fraud by a member of the public which, at 30 June 2006, was being investigated by SA Lotteries.
QUALITY MANAGEMENT SA Lotteries is committed to the implementation of quality practices and systems in all aspects of its operations. A Quality Management System operates to document the processes and controls in place to achieve the objectives described in the organisation’s Quality Policy Statement, and to maintain continuing certifi cation to the Quality Standard AS/NZS ISO 9001:2000. Regular reviews maintain the focus on continual improvement and the Quality Manage- ment System is audited biannually.
INFORMATION SECURITY SA Lotteries complied with the requirements of the Information Security Standard ISO/IEC 17799:2000 and AS/NZS 779:2000, verifi ed via independent biannual audits. INTELLECTUAL ASSETS MANAGEMENT SA Lotteries maintains a current Intellectual Assets Register of all trademarks, business names and domain names registered by and in which SA Lotteries has an interest. In 2005-06, SA Lotteries and other Australian lottery operators that participate in multi-jurisdictional games, commenced the process of establishing a framework of manage-ment agreements and a series of licence agreements for the trademarks of each multi-jurisdictional game. This will ensure maximum protection of those trademarks by quality controlled usage by each operator.
Attendance at meetings
Ms Suzanne Mackenzie 12 #
* Member for part year only. # Not a member. Invited attendee.
CORPORATE GOVERNANCE
CORPORATE SOCIAL RESPONSIBILITY SA Lotteries ensures that its commitment to revenue generation is carefully balanced with the objective of social responsibility. As such, corporate and socially responsible business practices are embraced by SA Lotteries in the operation of its business and the promotion of its games.
The strategic goal of becoming a corporately responsible and respected organisation with a broad base of community support was progressed with a Corporate Social Responsibility (CSR) Framework and Program being developed.
In January 2006, a committee was established to review SA Lotteries’ current CSR initiatives, and recommend and develop future strategies to be implemented progressively throughout 2006-07.
SA Lotteries’ CSR Program is segmented into four key elements of corporate responsibility – environmental, social, economic and corporate governance.
SA Lotteries’ key stakeholders have been identifi ed within the CSR Program, as Business Partners (agents and suppliers), Customers, Community, Concerned Sector and the Gambling Industry, Employees, Executive, the Commission, and the State Government.
The strategies defi ned in the CSR Program are segmented according to SA Lotteries’ environmental, social, environmental, economic and corporate governance contributions. Each strategy will be measured and reported upon, and is linked to one or more of the State Government’s objectives.
Our Strategy: Build community and stakeholder trust and support.
commission
Administration, Corporate Communications, Human Resource Management,
Strategic Planning.
Quality Management.
Dip Adv.
group manager Ian Clayfi eld
BEc, FCA.
Government
Players
CORPORATE SOCIAL RESPONSIBILITY
It is critical that SA Lotteries remains strategically relevant to the South Australian community by ensuring that game content is relevant to specifi c generations and customers have choice and convenience of purchase.
SA Lotteries operates and promotes eight lottery games of chance: Lotto - Saturday, Lotto – Monday and Wednesday, Oz Lotto, Powerball, Instant Scratchies, Keno, Super 66, and The Pools.
Our Strategy: Grow lotteries revenue by enhancing existing games and introducing new games and initiatives to meet players’ expectations.
LOTTO SATURDAY Just Imagine.
Lotto – Saturday is a national game which offers players the chance to share in a guaranteed minimum Division One prize pool of $4 million plus seven Megadraw prize pools each year.
Matrix Six numbered balls, plus two supplementary balls, are randomly drawn from a barrel containing 45 numbered balls.
Sales Performance $132.4 million ($2.8 million or 2.1% decrease from 2004-05).
Percentage of Sales 38%
Highlights Record $32 million Megadraw in Dec- ember 2005. Subscription fee increase from 45 to 50 cents per game in March 2006, enabling an increase in the guaranteed Division One prize pool from $3 million to $4 million.
Trend Sales maintenance
Value of Prizes Won $74.0 million
LOTTO MONDAY AND WEDNESDAY Just Imagine.
SA Lotto, a game offered only in South Australia, was transitioned to a multi- jurisdictional Lotto game in April 2006. The new Lotto – Monday and Wednesday game offers South Australians the chance to share an increased guaranteed Division One prize pool of $1 million every Monday and $750 000 every Wednesday.
Matrix Six numbered balls, plus two supplementary balls, are randomly drawn from a barrel containing 45 numbered balls.
Sales Performance $35.9 million ($4.7 million or 11.6% decrease on 2004-05).
Percentage of Sales 10.3%
Highlight Transition from SA Lotto to Lotto – Monday and Wednesday
Trend Sales growth
Value of Prizes Won $20.0 million
OZ LOTTO Bigger Jackpots, More Often.
Oz Lotto is a national game played on a Tuesday night.
Matrix Seven numbered balls, plus two supplementary balls, are randomly drawn from 45 numbered balls.
Sales Performance $16.5 million ($1.9 million or 12.7% increase on 2004-05).
Highlight In October 2005 Oz Lotto was relaunched with a 7 from 45 game matrix and increased prize divisions.
Trend Sales growth Value of Prizes Won $9.2 million
Our Games
All games are conducted according to the Rules under the State Lotteries Act. The Auditor-General of South Australia reports annually on the fi ndings with respect to the audit of SA Lotteries, and all games and services bearing the SA Lotteries brand can be trusted for quality and integrity.
In 2005-06, our games have performed as follows:
Growing Prosperity
Growing Prosperity
Sales per Capita – based on South Australian adult (18+) population.
GAMES
POWERBALL Life’s different when you’ve won.
Powerball is a national game played on a Thursday night.
Matrix Five numbered balls are randomly drawn from the fi rst barrel of 45 numbered balls and one ball (the Powerball) from the second barrel of 45 numbered balls.
SUPER 66 Simply Super.
Super 66 is a national game played on a Saturday night.
Matrix Six-digit number combination is chosen in the range of 000000 to 999999. To win, players match their selected numbers with the drawn numbers in the order drawn.
KENO More Winners. More Often.
Keno is played every 3.5 minutes. Matrix 20 numbers are randomly generated from a possible 80 every 3.5 minutes. Players can choose to select one number (Spot 1) to ten numbers (Spot 10).
Highlight Spot 10 winner of $1.768 million in August 2005
Trend Sales growth
INSTANT SCRATCHIES It happens.
Instant Scratchies provide South Australians with the opportunity to scratch an instant prize.
Matrix Each ticket series has a unique prize matrix with top prizes ranging from $10 000 to $250 000.
Highlight Expansion of ticket range from eight to nine tickets.
THE POOLS Play. Score. Win.
The Pools is a weekly national game based on the results of soccer matches.
Matrix Six numbers plus a supplementary number are determined from a fi eld of 38 based on the results of soccer matches.
Key Change Match lists restructured to include northern hemisphere and southern hemisphere soccer leagues.
GAMES
100999897969594939291
90898887868584838281
80797877767574737271
70696867666564636261
60595857565554535251
50494847464544434241
40393837363534333231
30292827262524232221
20191817161514131211
10987654321
Top Prize Winners in SA across all games DATE: 2005-06
92 Division One
10 Millionaires
SOUTH AUSTRALIA WINS South Australians won more than $209 million in prize money in 2005-06, with one multi-millionaire and 10 millionaires created. Ninety-two players experienced the excitement of winning a Division One prize sharing in more than $36.9 million. This represents an 18 per cent increase in Division One winners on the previous year.
WHAT WE’VE DONE FOR OUR CUSTOMERS SA Lotteries’ continued to provide a quality service to its customers during the year with several highlights being achieved, including: • Liaising with the Offi ce of Consumer
and Business Affairs in alerting the public to the risks of participating in the increasing number of lottery scam emails, particularly via the internet.
• Developing a dedicated Lottery Scam web page in October 2005, resulting in a reduction in the number of lottery scam notifi cations via telephone and email by 80 per cent.
• Continuing to provide customers with a jackpot advice email service and progressing the development of an SMS results service for launch in early 2006-07.
• Selling more than 78 million tickets in SA Lotteries games.
• Delivering a reliable service to customers through 99.99 per cent availability of our central online lotteries system at agencies across the State.
• Responding to customer complaints and inquiries on average within 4.59 days.
Our Strategy: Maximise the community benefi ts and promote the benefi ciaries of SA Lotteries’ operations.
Some of South Australia’s most memorable wins were: • A Naracoorte woman slept with
her handbag overnight to ensure her $1.14 million Lotto Megadraw ticket stayed safe on New Year’s Eve.
• Thirteen workmates from West Lakes shared a $1 million Saturday Lotto prize. The group’s winning numbers had been selected by former workmates who had originally formed the syndicate.
• ‘Giving’ was at the top of the shopping list for the southern suburbs couple who put part of their $1.1 million Lotto Megadraw prize towards a new home ... for their friends.
• A Riverland couple won a $678 571 Lotto Megadraw prize without even paying for the ticket – the 14-game Easi-Pick had been a ‘thank you’ gift from a family member.
• A Lotto syndicate manager was woken on Easter Sunday with the news that he and 20 of his Edinburgh RAAF Base workmates had shared $571 428.
• A Blair Athol pensioner became $1 million richer in the inaugural Monday Lotto draw, collecting his prize just days before his 83rd birthday.
EASIPLAY CLUB MEMBERSHIP More than 180 000 South Australians are members of the Easiplay Club (16 per cent of the South Australian population aged over 18 years).
SA Lotteries provides this free service which safeguards potential prizes on a registered ticket that is lost or damaged. An additional benefi t of being an Easiplay Club member and registering ticket purchases is the potential of receiving the ‘phone call of a lifetime’. During the year, 27 Easiplay Club members received a telephone call to inform them of a Division One prize win. In total, 160 093 prizes worth $5.67 million were conveniently provided to Easiplay Club members in the form of a cheque or a direct deposit into their bank account. During the year, 12 Easiplay Club customers won a bonus $10 000 by registering a Maxi-Pick purchase on their Easiplay Club card, as part of a monthly promotion.
WEBSITE REDEVELOPMENT In 2005-06, SA Lotteries’ website registered a record one million visits from people accessing game results and general information about the organisation. Recognised as an invaluable tool for the provision of information and customer service to players and agents, SA Lotteries has progressed the redevelopment of the website. Key features of the website will include improved design and layout, increased functionality, and an Agent Extranet that will deliver information distribution effi ciencies across the agent network. Launch of the redeveloped website will take place in 2006-07.With more than 74 per cent of South
Australian adults choosing to participate in one of SA Lotteries’ games at least once every year, ensuring that our customers’ experience in playing and winning our games is enjoyable is vital to our business success.
game no. of division one
winners
Lotto – Saturday 41
SA Lotto [replaced by Lotto – Monday and Wednesday in April 2006]
10
19
19
0.1% 0.0%
925 000 1 083 727
Our Strategy: Ensure growth and sustainable revenue opportunities are pursued.
CUSTOMERS
PROMOTING RESPONSIBLE PLAY SA Lotteries promotes, conducts and distributes lotteries games in a responsible manner to generate wealth for the South Australian community.
Lottery products are rarely associated with problem play despite their wide accessibil- ity and high participation rates; however, SA Lotteries is committed to ensuring that problem gambling issues are addressed and will continue to ensure that appropriate problem gambling risk management strategies and programs are in place.
COMPLIANCE PROGRAM SA Lotteries’ internal compliance program incorporates the requirements of the Codes of Practice. All SA Lotteries’ agents are audited at least once a year with 28 checks of compliance to ensure that agents are adhering to the Codes.
A total of 795 audits were completed during the year. Approximately 85 per cent of these audits found agents to be compliant with requirements of the Codes. In all instances of non-compliance, agents were re-audited within two months to ensure agents had taken remedial action. In most cases the second audit found that the non-compliance issues had been addressed, and in all cases, the third audit confi rmed that there were no outstanding non-compliance issues.
RESPONSIBLE GAMBLING TRAINING In accordance with the Responsible Gambling Code of Practice, SA Lotteries provides responsible gambling training for all agents and relevant employees through Wesley 4 Training (Uniting Care Wesley). A total of 154 agents and 12 SA Lotteries employees received responsible gambling training accreditation during 2005-06.
SA Lotteries also continued a training program specifi cally for agency staff aged less than 18 years ensuring that employment opportunities for South Australian youth are maximised and the individuals are appropriately prepared for their role in a responsible gambling environment. A total of 48 people under the age of 18 received responsible gambling training in 2005-06.
AGE INCREASE TO PLAY OUR GAMES As part of a long-standing commitment to responsible gambling, SA Lotteries has actively supported the increase in the legal age to play SA Lotteries games from 16 to 18 years. This would result in consistency with other forms of gambling in South Australia.
On 3 June 2006, the Minister for Administrative Services and Government Enterprises, the Hon Michael Wright MP, announced that the legal age for playing SA Lotteries games would be increased from 16 to 18 years.
It is intended that the enabling legislation will be introduced in the 2006 session of Parliament.
CODES OF PRACTICE The State Lotteries Responsible Gambling Code of Practice and the State Lotteries Advertising Code of Practice have been operational since April 2004 and are subject to review every two years by the Independent Gambling Authority (IGA).
In accordance with the State Lotteries Responsible Gambling Code of Practice, SA Lotteries has practices in place to ensure that: • Game Rules and responsible gambling
materials are available in the gambling areas of all agencies.
• A clock is displayed in all gambling areas.
• All reasonable steps are taken to ensure that a player who demon- strates diffi culty in controlling his or her personal expenditure on lottery products has his or her attention drawn to the name and telephone number of a widely available gambling referral service. Any instances of problem gambling are to be reported to SA Lotteries by the agent and maintained in a register of reports.
• Intoxicated persons are prevented from gambling and alcohol is not used to reward, promote or encourage continued gambling.
• Cheques are not cashed in gambling areas.
• Provision is made for any players to be removed from SA Lotteries’ Easiplay Club database.
• All staff undertake responsible gambling training and appropriate records are maintained by the agent.
In accordance with the State Lotteries Advertising Code of Practice, SA Lotteries has practices in place to ensure that: • All advertising is socially responsible
and does not mislead or deceive customers.
• Advertising is not placed on radio between 6am and 8.30am on Monday to Friday (inclusive) or on television between 4pm and 7.30pm Monday to Friday (inclusive).
• The chance of winning (except for radio) and the Gamble Responsibly message is included on all advertising where reference is made to the value of prizes.
IGA CODES OF PRACTICE REVIEW In February 2006, the Independent Gambling Authority (IGA) called for submissions on its review of the Codes of Practice and Second Stage Issues. In regard to the Second Stage Issues, SA Lotteries did not support several of the proposed provisions; in particular, the removal of Keno from retail premises and the increase in age to sell SA Lotteries products as both provisions would signifi cantly impact on the profi tability and viability of the many small businesses that sell our games, together with reducing employment opportunities within SA Lotteries’ agent network.
To support its submission to the IGA, SA Lotteries contracted an independent market research company to conduct a survey of the retail agent network and Keno players to determine the impact of the proposed provisions, particularly the removal of Keno from retail premises (such as newsagencies, pharmacies and similar environments) and the increase in the selling age for SA Lotteries products.
The IGA is expected to announce its recommendations on the Second Stage Issues in 2006-07.
REDUCING THE SIGHTS OF GAMBLING In 2005-06, SA Lotteries completed replacement of existing Keno monitors in its retail agent network with 391 LCD monitor screens to reduce the visibility of SA Lotteries games from outside the gambling area of each agency.
Promoting responsible play
* Reports of problem gambling proactively submitted by agents refl ecting customer contact or an incident of concern at agencies.
10% 15%
Improving Wellbeing
COMMUNITY
SUPPORTING THE SOUTH AUSTRALIAN COMMUNITY SA Lotteries returns approximately 96 cents of every dollar spent by players to the South Australian community in some form.
SA Lotteries’ strategic goal is to be a corporately responsible and respected organisation that has a broad base of community support.
In addition to supporting the South Australian community via returns to the Hospitals Fund and the Recreation and Sport Fund, SA Lotteries also provided sponsorship to key South Australian organisations and events that benefi ted the broader community.
PLAYING OUR PART TO ASSIST SOUTH AUSTRALIANS IN NEED In conjunction with Austereo network’s Triple M, SA Lotteries conducted a Christmas Wish promotion in December 2005, in which listeners were given the chance to fulfi l their dreams for Christmas by registering their wishes on the Triple M website. Six wishes were granted to South Australians in need. Continuing with the Christmas spirit, SA Lotteries’ employees generously donated more than 50 gifts to the Smith Family’s 2005 Christmas Appeal, aiming to brighten Christmas Day for many disadvantaged South Australian children.
In May 2006, Powerball’s 10th Birthday was celebrated with a giant 190kg cake and raising funds for the Cancer Council’s Australia’s Biggest Morning Tea event. The Minister for Administrative Services and Government Enterprises, the Hon Michael Wright MP offi cially launched the celebrations, which were followed by more than 4000 slices of cake being served to people in Rundle Mall, who were encouraged to make a donation for their slice of fun.
SA Lotteries’ employees also participated in Australia’s Biggest Morning Tea event, by hosting a bake-off and raffl e with all funds raised matched by SA Lotteries. Together with funds received from the public during Powerball’s 10th Birthday promotion in Rundle Mall, SA Lotteries was one of the Cancer Council’s highest fundraisers in South Australia.
SUPPORT FOR SPORT IN SOUTH AUSTRALIA For the fi fth consecutive year, SA Lotteries sponsored the Jacob’s Creek Tour Down Under Sprint Jersey. The six race days covered both metropolitan and country regions of the State, reaching the broader South Australian community and in turn SA Lotteries’ widespread customer base. In January 2006, an estimated 435 000 people attended this event.
SUPPORT FOR THE ARTS IN SOUTH AUSTRALIA In 2005-06, SA Lotteries’ provided sponsorship for the Adelaide Bank Festival of Arts enabling the participation of more than 1200 artists and performers. SA Lotteries also provided sponsorship for the Adelaide Fringe which attracted an audience of more than 780 000 in 2006.
The State Theatre Company received sponsorship support for the 2006 season which allowed the State Theatre Com- pany to channel resources into projects that support and nurture the creativity of emerging and established South Australian artists and their ideas.
The Australian Dance Theatre (ADT) also received support from SA Lotteries. Through this sponsorship, the ADT was able to expand their engagement with Restless – Australia’s leading dance company for young people with and without a disability.
A partnership arrangement with the Adelaide Symphony Orchestra (ASO) was progressed and will be launched in August 2006. SA Lotteries Symphony Sessions will bring ensembles of ASO musicians into the Royal Adelaide Hospital to perform for patients.
Supporting the South Australian community
Contribution to the Hospitals Fund and Recreation and Sport Fund
$84.5 million $85.3 million
Sponsorship and philanthropic dollar per capita (SA adult population 18+)
$0.26 $0.14
Our Strategy: Maximise the community benefi ts and promote the benefi ciaries of SA Lotteries’ operations.
COMMUNITY
SA Lotteries continued to donate used computers to not-for-profi t organisations with 41 charities receiving computers during the year. SA Lotteries also recycles toner cartridges, and in March 2006 purchased new copiers and implemented default duplex printing. Furthermore, as part of SA Lotteries’ CSR Program, a recycling strategy is being developed for agents and employees to assist in the reduction of waste.
In February 2006 a group of 26 employees volunteered in Business Clean Up Day, as part of the national Clean Up Australia campaign by collecting litter in and around the Adelaide Park Lands area. SA Lotteries’ efforts contributed to the removal of 9000 tonnes of rubbish from 7555 sites across the country.
REDUCING OUR IMPACT ON THE ENVIRONMENT SA Lotteries is committed to reducing the environmental impacts of its business and has already decreased its greenhouse gas emissions primarily through relocation to its new Head Offi ce, which incorporates energy effi cient equipment and practices.
South Australia’s Strategic Plan targets a reduction in energy consumption in government buildings by 25 per cent within 10 years and to achieve the fi rst Kyoto target in relation to greenhouse emissions. SA Lotteries has achieved this reduction in greenhouse emissions in 2005-06.
During 2005-06, four more SA Lotteries’ vehicles were replaced with dual-fuel optioned vehicles. A total of 38.5 per cent of SA Lotteries’ fl eet of SA Government plated vehicles now operates on dedicated LPG or dual fuel systems. The program will continue during 2006-07.
Our Strategy: Adopt sound environmental practices in all operations.
Reducing our impact on the environment
Performance against annual energy use targets
target 2005-06
actual 2005-06
Attaining Sustainability
Reduce energy consumption by 25% in 10 years (2003-04 to 2013-14).
1 018 828 KWhrs
Attaining Sustainability
Reduce greenhouse gas emissions by 15% in nine years (2000-01 to 2009-10)
1 083 284 Kg CO2
882 582 Kg CO2
period energy use (gjs)
Base Year 2000-01 3 834 116 165 1 181 764
Year 2001-02 3 961 133 903 1 220 894
Year 2002-03 3 897 135 009 1 201 064
Year 2003-04 3 861 137 124 1 117 889
Year 2004-05 3 814 147 033 1 129 975
Target 2005-06 3 514 N/A* 1 083 284
Year 2005-06 2 863 113 535 882 582
Interim Target 2009-10 3 258 N/A* 1 004 499
Final Target 2013-14 2 876 N/A* 886 323
* Financial targets are not set as energy prices and are subject to market fl uctuations.
COMMUNITY
OUR AGENT NETWORK SA Lotteries relies heavily upon its agent network of more than 530 members as the interface between SA Lotteries and its customers. These agents play an integral part in achieving the organisation’s corporate goals.
Since inception in 1967, SA Lotteries’ network has comprised a diverse mix of businesses – newsagents, delicatessens, chemists, supermarkets, kiosks, service stations, hotels and clubs – to provide convenient access to our broad customer base.
SA Lotteries’ agency network is comprised of predominantly small businesses in both retail and licensed premises.
AGENT REFERENCE GROUP The Agent Reference Group (ARG) was established in January 1996 to strengthen the relationship between SA Lotteries and the agency network and to provide a forum for the presentation of any new ideas or concepts that may affect agents prior to fi nalisation.
During the year, the ARG continued to provide valuable input into SA Lotteries’ marketing and promotional strategies. Three new members were welcomed to the group, replacing three members who had completed their term of appointment.
SA Lotteries thanks the retiring members David Sandow (Pirie Plaza Newsagency), Lynette Martin (Chapman’s Newsagency), and Russell Noack (Belair Hotel) for their contribution.
The ARG comprises the following agents: • Neil Cole (Seaford Newsagency) • Carolyn Neindorf (Cobdogla and District
Community Club) • Leah Mills (Nurioopta Newsagency) • Jo-Anne Neindorf (Neindorf’s IGA
Friendly Grocer) • Lee Russell (Burton Road Super Deli) • David Nicholas (Lotteries Kiosk Arndale) • Ann Laing (Flinders Park IGA Everyday) • Michael Mason (Federal Hotel) • Helen Tink (Bordertown Newsagency) • June Carter (Glenside Newsagency
and Stationers).
Our Strategies: Ensure a sound, responsive and adaptive technology infrastructure; and ensure growth and sustainable revenue opportunities are pursued.
We are pleased to have supported each of our agents in their individual business success through our return of $25.8 million in agent commission.
During the year, we supported our agent network by: • Providing 99.99 per cent reliability of
our online lotteries system, refl ecting down time of only 55 minutes for the year.
• Continuing to provide comprehensive in-house training for new agents in agency and terminal operations.
• Evaluating the performance of our network and rewarding excellence in agency operations via the annual Agency Excellence Awards program that embraces sales rankings, audit results and compliance with the Codes of Practice. The 2005-06 Agency Excellence Awards presentation function was held on 3 September 2005 when 15 awards were presented, including the Agent of the Year Award to Castle Plaza Lotteries Kiosk.
Distribution by agents by business type as at 30 June 2006:
• Enhancing our corporate image through the implementation of the approved agency fi t out at a further 45 agencies, with a total of 433 (80.8%) of the network meeting their corporate fi t out obligations.
• Maintaining our relationship and supporting the key industry bodies representing the members of our agency network. During the year, SA Lotteries supported the Australian Newsagents’ Federation (SA Branch) annual awards function, which recognises excellence amongst newsagents in South Australia. Other agent industry associations that were supported during 2005-06 were the Australian Hotels Association (SA) and Clubs SA.
• Complying with the requirements of the Franchising Code of Conduct as it applies to SA Lotteries.Our agent network
Growing Prosperity
0.01% 0.01%
Growing Prosperity
180 000 199 473
5.12 5.17 (average of 165
regional outlets)
EBITDA Earnings Before Interest, Tax, Depreciation and Amortisation. FTE Average Full-Time Equivalent employee numbers during the year. MTBF Mean number of Transactions Between Failures.
business type
metro agents
regional agents
BUSINESS PARTNERS
BUSINESS RELATIONSHIPS The Bloc SA Lotteries participates in multi- jurisdictional (“Bloc”) arrangements with the other Australian lottery operators of NSW Lotteries (New South Wales), Tattersall’s (Victoria), Golden Casket (Queensland) and Lotterywest (Western Australia). The Bloc ‘pools’ monies, allowing players access to larger jackpots while lottery operators remain independent and autonomous in terms of their licensing structures and operations.
During the year the Executive Commit- tees of the various Blocs met regularly, with SA Lotteries hosting the March 2006 meeting.
In 2005-06, SA Lotteries continued its role as Game Administrator for the Australian Soccer Pools Bloc.
International Associations SA Lotteries values the information sharing and networking opportunities available as a result of international lotteries industry membership associations.
Asia Pacifi c Lottery Association (APLA) SA Lotteries is a Member of the Asia Pacifi c Lottery Association, which is one of fi ve regional associations in the lotteries industry worldwide and represents lottery organisations from countries within the Asia Pacifi c region.
SA Lotteries is represented on APLA’s Executive Committee. The Committee met on three occasions during the year with SA Lotteries hosting Executive Committee members from Hong Kong, Singapore and Japan in Adelaide in May 2006.
World Lottery Association (WLA) SA Lotteries is a Member of the World Lottery Association, an international member organisation. SA Lotteries is an APLA representative on the WLA’s Corporate Social Responsibility Commit- tee and the Global Legal Network Group.
OUR SUPPLIERS SA Lotteries is committed to best practice procurement by ensuring that an open and transparent acquisition process is maintained.
All procurements of goods and services valued at $55 000 (including GST) or more are subject to a call for tenders to enable all eligible suppliers to submit an offer. Contracts are awarded on the basis of pre-established criteria to ensure that SA Lotteries obtains the best value for money and quality of services.
During the year, the State Procurement Board approved a procurement authority level for SA Lotteries of $1.1 million ($50 000 at 30 June 2005).
SA Lotteries’ commitment to procurement is refl ected in our Corporate Social Responsibility Program and includes such initiatives as:
• Quarterly rating of existing suppliers to ensure suppliers deliver on price, quality and service.
• Quality management review of the Suppliers Register.
• Assessing each tenderer’s corporate, social and environmental contributions to the community when evaluating tenders.
The total number of suppliers providing services or products to SA Lotteries in 2005-06 was 375, accounting for $16.6 million. Whilst not achieving the target of 71 per cent of South Australian suppliers, SA Lotteries is pleased to report that $9.3 million was paid to 263 suppliers across the State.
Growing Prosperity
Dollar value of SA suppliers as a percentage of total suppliers
72% 56% ($9.3 million)
Market Equity (now Synovate)
Hudson Staff Recruitment
Starcom Media Procurement
BUSINESS PARTNERS
paid
paid (by value)
Paid by Due Date 2 150 99.861% $19 724 930 99.996%
Paid late but paid within 30 days of the due date
0 0.000% $0 0.000%
3 0.139% $875 0.004%
Account payment performance
SA Lotteries relies on the skills, experience and performance of more than 80 employees across fi ve functional divisions to contribute to the success of the organisation. The future success of SA Lotteries will continue to depend on people and strong leadership at all management levels to promote a high- performance culture that values integrity, responsibility and respect.
LEADERSHIP DEVELOPMENT PROGRAM SA Lotteries implemented a Leadership Development Program with the objective of building a leadership-based performance culture and to ensure adequate succession planning. Four high potential employees were selected from across the organisation to participate in workshops, one-on-one coaching and preparation of a learning assignment. Managers from within the organisation were also invited to participate in modules on Innovation and Creativity and Managing Individuals and Teams.
A HEALTHY WORKPLACE SA Lotteries provides its employees with a safe, and modern working environment. In an effort to promote a healthy work/life balance, SA Lotteries provided subsidised fl u vaccinations for employees, in addition to subsidised yoga classes.
During the year, workstation assess- ments for all employees were completed by a professional ergonomist, with all recommended modifi cations made and equipment provided.
EMPLOYEE ASSISTANCE PROGRAM The Employee Assistance Program is a service offered to employees to provide confi dential guidance and advice for personal and work-related matters.
EQUAL EMPLOYMENT OPPORTUNITY SA Lotteries is committed to ensuring that all persons seeking employment are treated fairly and equitably and are not subjected to unlawful discrimination or harassment. During the year, there were no recorded breaches of the SA Lotteries’ Equal Opportunity Policy.
Our Strategies: Minimise operating costs as a percentage of sales and strive for a higher performance culture through a broader base of strong leadership, system and process innovation and employee development.
PERFORMANCE MANAGEMENT SYSTEM SA Lotteries has a performance management process to ensure all staff understand their roles and receive regular feedback and recognition of their performance. Through the use of a three-phase performance management system, 69 per cent of all employees have had a documented individual performance development plan in 2005-06.
TRAINING AND DEVELOPMENT To meet planned training and development requirements 1.89 per cent of total remuneration costs was committed to training during 2005-06, with 51 employees (61 per cent of total staff) participating in training courses.
Study assistance and study leave is also available to SA Lotteries’ full-time and permanent part-time employees, subject to the relevance of the proposed study and operational requirements. In 2005- 06 SA Lotteries supported six employees with study assistance and study leave.
ENTERPRISE BARGAINING During the year, the Lotteries Commission of South Australia Enterprise Agreement 2005 was successfully negotiated, which resulted in increased maternity leave provisions and awarded employees pay increases of between 3.5 and 4.0 per cent effective October 2004 and October 2005.
OVERTIME Paid overtime was reduced by 32 per cent on the previous year through effective management practices.
FLEXIBLE WORKING ARRANGEMENTS SA Lotteries provides a fl exible working environment to assist in balancing work and family responsibilities. During the year, SA Lotteries increased fl exible working arrangements for staff predominantly through part-time work and fl exible hours, from 16.3 per cent in 2004-05 to 27.5 per cent in 2005-06.
Flexible working arrangements
7.6% 6.7%
Growing Prosperity
Percentage of employees with vocational or higher education qualifi cations
55% 56%
Expanding Opportunity
Training and development costs as a percentage of base salary costs
2.61% 1.89%
Total Operating Expenses include interest and depreciation expenses. FTE Average Full-Time Equivalent employee numbers during the year.
male female total
Working from home 0 1 1
Flexible hours 2 7 9
EMPLOYEES
LEAVE MANAGEMENT A reduced level of sick and family leave days taken per full-time equivalent was maintained. All staff were encouraged to take their full annual leave allocation in the year it accrued.
DISABILITY DISCRIMINATION PLAN SA Lotteries developed a Disability Discrimination Action Plan in July 1998. The plan identifi es barriers and recom- mends strategies for eliminating those barriers following consultation with disabled persons and associations assisting the disabled in South Australia. Ongoing monitoring of the strategies continued in 2005-06.
The Chief Executive and Group Managers are employed under contract and do not have the right to be appointed to another position in the public sector at the end of their contract.
Average days leave taken per full-time equivalent employee
leave type 2005-06 2004-05 2003-04 2002-03
Sick Leave Taken
0.9 0.7 1.0 0.6
Special Leave with Pay
0.3 0.5 0.3 0.3
male female total % of agency
TOTAL – 1 1 1.25
75.9
employee status
Number of persons separated from SA Lotteries during the 2005-06 fi nancial year
11
Number of persons recruited to SA Lotteries during the 2005-06 fi nancial year
12
Number of persons on leave without pay at 30 June 2006
1
Number of executives in current position by gender and classification
classifi cation contract tenured
Total – – 3 1 3 1 4
Status of employees in current position
full-time equivalents
Persons
EMPLOYEES
OCCUPATIONAL HEALTH AND SAFETY SA Lotteries is committed to ensuring, so far as is reasonably practicable, that all employees are safe from injury and risk to health while at work. This is achieved by striving to continually improve health and safety systems and practices and by comparing those against industry standards. During 2005-06, the following health and safety activities took place: • Review of all occupational health
and safety policies, guidelines and procedures.
• Annual occupational health and safety inspection of premises.
• First aid training for relevant employees.
• Quarterly occupational health and safety committee meetings.
WORKERS COMPENSATION During the year, SA Lotteries maintained a reduced WorkCover levy rate through the effective management of safe work practices.
Employees by age bracket by gender
Number of employees by salary bracket
Number of Aboriginal and/or Torres Strait Islander employees
Cultural and linguistic diversity
age bracket male female total % total workforce benchmark*
15-19 0 0 0 0 7.9
20-24 1 1 2 2.5 10.7
25-29 6 7 13 16.25 9.8
30-34 4 6 10 12.5 10.5
35-39 5 7 12 15.0 11.4
40-44 7 7 14 17.5 12.4
45-49 8 4 12 15.0 12.4
50-54 4 2 6 7.5 10.9
55-59 3 5 8 10.0 8.3
60-64 0 2 2 2.5 4.4
65+ 0 1 1 1.25 1.3
Total 38 42 80 100.0 100.0
* Benchmark as at January 2006 from ABS Supertable LM8
salary bracket male female total
$0-$43 999 6 10 16
$44 000 - $54 999 13 14 27
$55 000 - $67 999 10 9 19
$68 000 - $88 999 6 8 14
$89 000 + 3 1 4
Total 38 42 80
Aboriginal/ Torres Strait Islander
male female total % of agency
sa community*
Number of employees born overseas
8 8 16 20 20.3%
Number of employees who speak language(s) other than English at home
– 2 2 2.5 15.5%
Total 8 10 18 22.5 * Benchmarks from ABS Publication Basic Community Profi le (SA) Cat No. 2001.0.
destination reason for travel no. of employees total cost
Hong Kong and Beijing, China
2nd Asia Pacifi c Lottery Association Regional Conference
1 $7 795
EMPLOYEES
occupational health, safety and injury management 2005-06 2004-05 2003-04
1 OH&S legislative requirements
Number of notifi able occurrences pursuant to OHS&W Regulations Division 6.6
Nil Nil Nil
Number of notifi able injuries pursuant to OHS&W Regulations Division 6.6
Nil Nil Nil
Number of notices served pursuant to OHS&W Act s35,s39 and s40
Nil Nil Nil
Total number of employees who participated in the rehabilitation program
Nil Nil Nil
Total number of employees rehabilitated and reassigned to alternative duties
Nil Nil 1
Total number of employees rehabilitated back to their original work
Nil Nil Nil
Number of open claims as at 30 June 2006 1 1 Nil
Percentage of workers’ compensation expenditure over gross annual remuneration
0.27 0.34 0.19
3 Number of Claims
Number of new workers’ compensation claims in this fi nancial year
4 2 Nil
Number of lost time injuries (LTI) 2 3 Nil
Number of medical treatment only (MTO) 2 Nil 3
Total number of whole working days lost 2 36 Nil
4 Cost of workers compensation
Cost of new claims for fi nancial year $306 $6744 Nil
Cost of all claims excluding lump sum payments $14 958 $24 137 $11 660
Amount paid for lump sum payments on the settlement of a claim (s42,s43,s44)
Nil Nil Nil
Total amount recovered from external sources (s54) including from a negligent third party
Nil Nil Nil
Budget allocation for workers’ compensation $122 520 $115 200 $104 560
5 Trends
Injury frequency rate for new lost-time injury/disease for each million hours worked
15.29 15.09 0.00
Most frequent cause (mechanism) of injury Manual handling Manual handling N/A
Most expensive cause (mechanism) of injury Slips, trips & falls Manual handling N/A
south australia’s strategic plan objective
sa lotteries’ goals
sa lotteries’ 2006-07 outlook
Growing Prosperity To promote, conduct and distribute lotteries games in a responsible manner to generate wealth for the South Australian community.
• Added value to games through innovative promotions and enhancements to existing games.
• Enhanced relationship with existing agents respecting the links between their business and SA Lotteries.
• Ensuring that our distribution network meets customer expectations.
• Planned activities to achieve replacement of the Online Lotteries System in 2009 continued.
Fostering Creativity • Increased level of internet use by agents, Easiplay Club Members and SA Lotteries players.
Improving Wellbeing To be a corporately responsible and respected organisation that has a broad base of community support.
• Strategies outlined in the Corporate Social Responsibility (CSR) Program implemented.
• Compliance with the State Lotteries Responsible Gambling and Advertising Codes of Practice continued.
• The level of public recognition of the role that SA Lotteries plays in benefi ting the community of South Australia heightened.
Attaining Sustainability • Reduced energy consumption and greenhouse gas emissions to minimise our impact on the environment.
Growing Prosperity To improve productivity by optimising the use of assets and pursuing the most effective work practices.
• Organisation cost structures and charges reviewed • The redeveloped website and agent extranet
launched.
• The development and fi nalisation of the sixth Enterprise Agreement.
EMPLOYEES THE YEAR AHEAD
SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries
SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries
SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries
SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries SA Lotteries

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LOTTERIES ACT - SAFLII

LOTTERIES ACT 1994

State Lotteries

Social Media – Lotteries Council 2011

Rules of Authorised Lotteries - Netlotto

BETTING, LOTTERIES AND GAMING ACT · Betting, Lotteries and...

Lottery - Home - Endeavour Foundation Lotteries

State Lotteries: History, practices, Issues, and the …...

Rules of Authorised Lotteries

Results of Kerala State Lotteries

Lotteries Act 1964 - ACT Legislation Register · This is a....

Online Lotteries - Lotteries Council