NEW SOUTH WALES

CASINO CONTROL AUTHORITY

ANNUAL REPORT 1999 | 2000

Designed and printed by NSW Government Printing Service Ð (02) 9743 8777

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NEW SOUTH WALES CASINO CONTROL AUTHORITY

The Hon J Richard Face MP

Minister for Gaming and Racing

Minister Assisting the Premier on Hunter Development

Parliament House

SYDNEY NSW 2000

Dear Minister

The Casino Control Authority is pleased to present its Annual Report for the

financial year 1999/2000.

The Report has been prepared in accordance with the Casino Control Act 1992,

the Annual Reports (Statutory Bodies) Act 1984, and the Annual Reports

(Statutory Bodies) Regulation 1995.

Yours sincerely

Sir Nicholas Shehadie AC OBE Brian Farrell

Chairperson Chief Executive

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CHAIRPERSONÕS REPORT

The 1999-2000 year was one of considerable change for the Authority.

In September 1999 the AuthorityÕs inaugural Chief Executive, Mr Lindsay Le

Compte, completed his second term of appointment and left the Authority to

further his public sector career.

I wish to record the appreciation of the Authority members for his achievements

in establishing the Authority and guiding it through selection of the Casino Operator,

overseeing the opening of both the temporary and permanent casinos, the substantial

investigations relating to HarrahÕs, Leighton and TABCORP and the completion of

the first Review of the Casino Operator under Section 31 of the Casino Control Act.

Three other senior Authority staff also left the Authority during the year. This placed

a considerable extra burden on the remaining staff who I am pleased to acknowledge

handled their increased responsibility and workload admirably.

In April 2000 Ms Kaye Loder, a member of the Authority since 1996 and Chairperson

since 1998, resigned. Ms LoderÕs stewardship, in particular during the TABCORP

takeover of Star City Casino and the Leighton application to be allowed to become

a close associate of the Casino Operator, is acknowledged.

In November 1999 the Authority commenced the second Review of the Casino

Operator under section 31 of the Casino Control Act and advertised for public

submissions. Under that section the Authority is required to investigate and form

an opinion as to whether or not Star City Pty Ltd is suitable to continue to give effect

to the casino licence and if it is in the public interest that the casino licence should

continue in force. The Authority must report its findings and opinion to the Minister

for Gaming and Racing by 15 December 2000.

In April and May 2000 there were numerous reports in the media alleging that

money laundering and other criminal or undesirable activities were taking place

in the Casino. On 19 May 2000 the Authority determined to expand the Terms of

Reference of the current Section 31 Review and also to appoint Mr Peter McClellan

QC to assist the Authority in the Review by conducting an Inquiry under section 143

of the Casino Control Act. The AuthorityÕs determinations were made in order to ensure

public confidence that all relevant matters would be fully and properly investigated.

Neville Allen LLB

Chairperson

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CASINO CONTROL AUTHORITY

Level 17

309 Kent Street

Sydney NSW 2000

Postal Address

GPO Box 3970

Sydney NSW 2001

Office hours

9.00 am to 5.00 pm

Monday to Friday

Telephone number

(02) 9392 2320

(An answering machine is in operation after hours)

Fax number

(02) 9299 7427

Internet Home Page

www.casinocontrol.nsw.gov.au

E-Mail Address

info@casinocontrol.nsw.gov.au

Patron comment on casino operations

Casino patrons may address any unresolved issues or other general concerns to the

Authority either by way of a formal letter, E-mail or by contacting the Authority on

(02) 9392 2320. Special employee licence matters or inquiries relating to controlled

contracts should be referred to the Help Desk on the same telephone number.

ISSN 1320-9558

250 copies of this document have been printed at an average cost of $38 per copy.

A computer readable version of this annual report has been presented to Parliament.

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STATISTICS AT A GLANCE

Item 1998/99 1999/00 Total Since

Opening

Casino Taxes

Casino Duty ($m) $108.28 $108.87 $455.15

International Commission Duty ($m) $3.00 $6.00 $9.00

Community Benefit Levy ($m) $9.56 $9.69 $41.00

Total ($m) $120.84 $124.56 $505.15

Casino Patrons (Million P/A Ð Approx) 7.82(m) 6.50(m) 31.10(m)

Exclusion Orders

Exclusion Orders Issued 483 467 2290

Applications for Review 89 63 444

Exclusions overruled by Authority 10 9 65

Total 582 539 2799

Main Reasons For Exclusions

Self Exclusion 231 243 825

Unattended Children 21 15 233

Disorderly Conduct 52 57 335

(including assault & intoxication)

Theft/Fraud 66 91 469

Gaming Related Incidents 86 35 266

Offences Under Casino Control Act 10 3 67

Direction by Commission of Police 3 16 49

Other (including failing to pay for meals, 14 7 46

suspected substance abuse)

Total 483 467 2290

Licensing

Special Employee Licences Approved 332 460 5361

Provisional Licences Issued 281 702 5250

Licence Variations 1352 1734 6304

Provisional Licences Cancelled 4 1 29

Special Employee Licences Renewed 0 46 491

Special Employee Licences Refused 7 8 91

Total 1976 2951 17526

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CONTENTS PAGE

1 | STRUCTURE AND FUNCTIONS 7

Statutory Objects and Functions 7

The Authority 9

Authority Committees 9

2 | REVIEW OF OPERATIONS 11

Aims and Objectives 11

Principal Activities During 1999/2000 11

Casino Operations 12

Construction and Development 12

Licensing 13

Gaming 15

Casino Internal Controls 19

Liquor Licensing 20

Minors 21

Exclusion Orders 22

Responsible Gaming Issues 22

Casino Duty and Community Benefit Levy 23

Authority Operations 25

Section 31 Investigation 25

Risk Based Casino Supervision Project 25

Public Access Ð Consultation 26

Overseas Travel during the 1999/00 Financial Year 27

Regulators Conference 27

Regulatory and Law Enforcement Liaison 27

Litigation 28

Legislation 29

Policies and Practices 30

Personnel 30

Policies 32

3 | REPORTS 36

Section 154 of the Casino Control Act 1992 36

Publications 40

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4 | FINANCIAL REVIEW 41

Review of Financial Results 41

Administered Revenues (Crown Revenues) 41

Budget Review 1999/2000 42

Budget for 2000/2001 44

Source of Funds 45

Application of Funds 46

Account Payment Performance 47

Auditor GeneralÕs Opinion 48

Start of Audited Financial Statements 49

End of Audited Financial Statements 77

5 | APPENDICE 78

Appendix I Ð Senior Executive Service (SES) Profile 78

Appendix II Ð Authority Membership and Meeting Details 79

Appendix III Ð Committee Functions 82

Appendix IV Ð Consultants 86

Appendix V Ð EEO Statistics 87

Appendix VI Ð FOI requests 1999/2000 88

Appendix VII Ð Corporate Credit Card Certification 92

Appendix VIII Ð Section 31 Investigation 93

Terms of Reference November 1999

Appendix IX Ð Section 31 Investigation 95

Expanded Terms of Reference May 2000

Appendix X Ð Compliance Index 97

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1 | STRUCTURE AND FUNCTIONS

The New South Wales Casino Control Authority (Òthe AuthorityÓ) was established

on 23 September 1992, pursuant to the provisions of the Casino Control Act 1992

(Òthe ActÓ).

STATUTORY OBJECTS AND FUNCTIONS

The objects of the Authority, as set out in section 140 of the Act, are to maintain

and administer systems for the licensing, supervision and control of a casino,

for the purpose of:

■ ensuring that the management and operation of the casino remains free from

criminal influence or exploitation;

■ ensuring that gaming in the casino is conducted honestly;

■ promoting tourism, employment and economic development generally in the

State; and

■ containing and controlling the potential of a casino to cause harm to the public

interest and to individuals and families.

Section 141 of the Act provides that the Authority has the following general functions:

■ such functions as are necessary or convenient to enable the Authority to achieve

its objects; and

■ such other functions as are conferred or imposed on it by or under the Act or

any other legislation or law.

Section 141 of the Act also provides that, without limiting its general functions,

the Authority has the following specific functions:

■ at the direction of the Minister, to invite expressions of interest for the

establishment and operation of casinos and applications for casino licences

and to consider and determine those applications;

■ to consider and determine applications for other licences under the Act;

■ to keep under constant review all matters connected with casinos and the

activities of casino operators, persons associated with casino operators, and

persons who are in a position to exercise direct or indirect control over casino

operators or persons associated with casino operators;

■ to review and report to the Minister on the efficiency and effectiveness with which

the Director of Casino Surveillance exercises his or her functions under the Act;

■ to advise the Minister on matters relating to the administration of the Act;

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■ to approve the games to be played in a casino and the rules under which such

games are played;

■ to approve gaming equipment for use in a casino;

■ to approve the operating times of a casino; and

■ to conduct and fund the conduct of research into matters concerning casinos.

ORGANISATION CHART

Refer to Appendix I for Senior Executive Service (SES) profile.

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INTERNAL AUDIT

OPERATIONS MANAGER

MANAGER ADMINISTRATION & FINANCE

MANAGER LEGAL SERVICES

CHIEF EXECUTIVE

MANAGER TECHNICAL SUPPORT

MANAGER LICENSING

MANAGER TABLE GAMES & CASHIER OPERATIONS

MANAGER AUDITS & SLOTS

MANAGER CASINO FACILITIES

CASINO CONTROL AUTHORITY

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THE AUTHORITY

The Authority consists of five members, one of whom is the Chief Executive. For most

of the 1999/2000 financial year there was one deputy member, Mr Neville Allen, who

became Chairperson on 3 May 2000 following the resignation of Ms Kaye Loder. All

members are part-time with the exception of the Chief Executive.

Appointment of Members

Part 10 of the Act determines the constitution, membership and qualifications

of Authority members. Members of the Authority are required to have qualifications

or experience in one or more of the following fields:

■ business management ■ gaming

■ law ■ finance

■ information technology

The Act requires that persons appointed as members of the Authority must be of the

highest integrity.

Authority membership at 30 June 2000 was as follows:

Name Position Date of Term

Appointment

Ms Jenny Calkin Member 23 September 1996 4 years

Mr Neville Allen Deputy Member 27 October 1999 to 22 September 2000

Chairperson 3 May 2000 to 22 September 2000

Mr Brian Farrell Chief Executive 17 April 2000 5 years

Appendix II details the membership of the Authority during the year and meetings

attended.

AUTHORITY COMMITTEES

The Authority has established the following Committees to review major functions

of its operations:

Ð Audit Committee

Ð Gaming Committee

Ð Research Committee

Ð Corporate Governance Committee

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A Probity Assessment Committee also oversees major probity investigations

on a needs basis. The Committee generally comprises three members of the

Authority including the Chairperson and Chief Executive.

The principal function of the Probity Assessment Committee is to receive reports

from the various persons/organisations involved in probity assessment matters and

to provide advice and direction to those persons/organisations as required. In the

reporting period, the Committee had significant involvement in probity matters

relating to the TABCORP Holdings Limited (ÒTABCORPÓ) and Leighton Properties

Pty Ltd (ÒLeightonÓ) investigations.

Appendix III summarises the functions of the four permanent Committees.

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2 | REVIEW OF OPERATIONS

AIMS AND OBJECTIVES

During the 1999/2000 financial year the AuthorityÕs operations focused on the

following principal aims and objectives:

■ assessing and approving operational matters relating to the conduct and

supervision of gaming in the casino;

■ maintaining and administering systems for the licensing of casino employees

and investigation of proposed contracts for the provision of goods and services

to the casino;

■ monitoring casino operations and the development of the casino complex;

■ examining issues relating to problem gambling and consumer protection;

■ liaising with law enforcement agencies with a view to ensuring that the casino

is not subject to criminal influence or exploitation;

■ undertaking probity and other investigations as required; and

■ contributing to inquiries undertaken by other organisations.

PRINCIPAL ACTIVITIES DURING 1999/2000

The AuthorityÕs principal activities during 1999/2000 included:

■ finalisation of the investigation of the Leighton group;

■ finalisation of the TABCORP probity investigation;

■ monitoring casino operations and the activities of the casino operator

and associates;

■ ongoing probity assessments;

■ considering and approving of casino operational matters;

■ consulting with the casino operator on the development of strategies to address

the potential impact of casino operations on those persons who may have

gambling related problems;

■ maintaining and enhancing the system for licensing special employees;

■ maintaining the system for the lodgement, investigation and review of

controlled contracts;

■ reviewing notifiable contracts;

■ considering issues relating to liquor licence obligations;

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■ approving and reviewing the casino operatorÕs system of internal controls and

administrative and accounting procedures;

■ liaising with law enforcement agencies on crime prevention matters;

■ collecting, and ensuring the protection of, State revenue due from

casino operations;

■ approving gaming equipment for use in the casino;

■ reviewing exclusion orders issued against patrons of the casino;

■ responding to patron concerns regarding casino operations;

■ monitoring sharemarket and other commercial activity relating to the publicly

listed casino company;

■ ensuring that the casino operator complies with the terms of the casino licence;

■ reviewing the efficiency and effectiveness of the Director of Casino Surveillance;

■ examining and reporting on matters investigated under s.30 of the Act;

■ ensuring compliance with project legal agreements; and

■ planning and initiating inquiries relating to the triennial review of the

casino operator.

CASINO OPERATIONS

CONSTRUCTION AND DEVELOPMENT

Since the opening of the permanent casino complex on the 26 November 1997,

Star City has undertaken a number of building development works in addition to the

rectification of outstanding building and equipment defects required to be actioned

by Leighton Contractors.

Under various provisions of the Act and the casino site lease, Star City is required

to consult the Authority, as landowner, and obtain approval for building works and

development proposals. The Director of Casino Surveillance and the Authority

monitor the progress of all projects to ensure compliance with relevant conditions

of approval and local Council requirements etc.

Star City has ensured that Leighton Contractors has significantly reduced the list of

outstanding building defects and the rectification program is now nearing completion.

Items of ongoing interest to the Authority include the light dimming systems, diesel

operated stand-by generators and electrical load shedding processes during

possible power failures.

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Throughout the year, Star City carried out numerous tests on emergency and power

back-up equipment. Authority and Division of Casino Surveillance representatives

have attended the tests and oversee the rectification of any deficiencies identified.

Tests on the computer-controlled load shedding equipment are continuing in

compliance with Authority requirements.

The surveillance camera system has continued to be expanded and enhanced and

the casino floor layout and table configurations have been modified in response to

the operatorÕs perception of changing patron preferences and patterns of usage.

Function facilities have also been expanded with three new rooms and a kitchen

located on the mezzanine level of the complex. Shielded doors and glass awnings

have been installed in the retail arcade and other open areas of the complex to

provide improved protection from adverse weather and wind.

Since the TABCORP takeover, Star City has instigated several new works projects

aimed at improving existing facilities and the quality of service and comfort provided

to casino patrons. A number of these projects are scheduled for completion prior to

the Sydney Olympics.

LICENSING

Casino Special Employees

The Act requires all persons who exercise functions in or in relation to the casino to

be licensed by the Authority. The Act sets out specific requirements which must be

assessed by the Authority in relation to each application for a licence. These

requirements relate to the reputation, honesty and integrity of the individual, the

individualÕs financial stability and suitability to undertake the functions which the

licence permits.

Applications lodged with the Authority are required to be referred to the Director

of Casino Surveillance for investigation and report back to the Authority. Where the

Director recommends a licence be refused, the Authority must give the applicant

an opportunity to make submissions as to why that person believes a licence should

be granted. Those submissions, together with the report of the Director, are then

considered in the AuthorityÕs determination of the application.

In certain circumstances, the Authority is empowered to direct persons who are

not employees of the casino operator to apply for special employee licences. This

particularly occurs with staff of controlled contractors who may have a significant

influence on casino operations such as gaming equipment technicians and persons

working with computer based systems.

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The Authority places a high priority on the provision of an effective service to licence

applicants and maintains a significant customer service orientation in order to assist

licence applicants through the application and assessment process. During the

reporting period, the AuthorityÕs Help Desk serviced approximately 2400 calls from

prospective licensees, current licence holders and other parties.

During the year, Authority staff conducted 1606 interviews of prospective special

employees and 102 interviews of prospective Junket Operators and their

Representatives.

Licensing related statistics for the year include:

Ð the approval and issuance of 702 Provisional Licences;

Ð the approval and issuance of 460 Special Employee Licences;

Ð approval of 46 licence renewals;

Ð approval of 102 Junket Operators/Representatives; and

Ð approval of 1734 variations to Special Employee Licences to permit those

licensees to undertake different or additional functions such as the dealing

or supervision of specific games.

The Director of Casino Surveillance recommended to the Authority that 16

applications for a special employee licence be refused. Following the hearing

of submissions from the applicants involved, the Authority upheld 10 of the

recommendations to refuse the applicant a special employee licence, granted

licences to 5 of the applicants and 1 application is yet to be determined.

Controlled and Notifiable Contracts

The Act provides that:

Ð any type of agreement or arrangement which relates wholly or partly to the

provision of goods or services to a casino is to be regarded as a controlled

contract;

Ð contracts that relate solely to the construction of a casino or to the alteration

of premises used or to be used as a casino, or of a class that is prescribed

as exempt, are not subject to the controlled contract provisions. Nevertheless,

the Authority is required to keep all persons and organisations associated with

the casino under constant review; and

Ð a casino operator must not enter into or become a party to a controlled contract,

or the variation of a controlled contract, unless the operator has notified the

Authority of the details of the proposed contract before entering into or becoming

a party to it and the Authority has not notified the operator that the Authority

objects to the proposed contract or variation.

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The Authority is also empowered to serve on each party to a controlled contract

a notice giving the parties an opportunity to show cause why the contract should not

be terminated on the grounds that it is not in the public interest for the contract to

remain in force.

In the reporting period, 19 controlled contracts were lodged with the Authority. The

Authority determined that 2 associates of parties entering into controlled contracts

were to apply for a special employee licence. This brings the number of associates

the Authority has determined should apply for a special employee licence to 107.

To date, 285 controlled contracts have been lodged with the Authority.

Contractual arrangements with an annual value of less than $200,000 (excluding

contracts for such items as gaming, security or surveillance equipment) are regarded

as notifiable contracts. There are currently 736 notifiable contracts with the casino

operator. These contracts do not require investigation prior to being entered into but

details relating to them are required to be notified to the Authority.

GAMING MACHINE APPROVALS

Section 68 of the Act provides that the Authority may approve of gaming equipment

for use in the casino and may investigate or authorise the investigation of gaming

equipment for the purpose of determining whether the equipment is suitable to be

approved for use in the casino.

Section 69 of the Act empowers the Authority to direct the casino operator to rectify

or destroy defective gaming equipment.

In relation to electronic gaming machines in the casino, the Minister has issued a

direction under the Act which permits the casino to have the same type of gaming

machines as are operated in registered clubs with the same range of games and

bet/prize limits.

The Authority monitors the operational quality and reliability of gaming machines

as well as the central monitoring system under which they operate in the casino

and requires any changes to the central monitoring system to be fully tested prior

to approval.

In the year ended 30 June 2000, the Authority received 76 applications for approval

of electronic gaming machines and games. One electronic gaming machine game

approval was withdrawn.

The 76 approvals consisted of:

Ð 67 approvals for new electronic gaming machine games;

Ð 8 approvals for game software updates; and

Ð 1 approval of gaming machine related hardware.

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Other approvals related to:

Ð a major upgrade to the casinoÕs bonusing system; and

Ð upgrades to the casinoÕs central monitoring system.

In the year under review, revised electronic gaming machine internal controls and

procedures were developed in consultation with the Authority and the Director of

Casino Surveillance.

CASINO TABLE GAMES AND RULES OF GAMES

Section 66 of the Act provides that all table games played at Star City must be

conducted in accordance with rules approved by the Authority by Order published

in the NSW Government Gazette.

The approved rules of games are publicly available at the casino and on the

AuthorityÕs Internet site. In addition, the casino operator is required to ensure that

brochures summarising the approved games and rules of play (in a text approved

by the Authority) are provided to patrons on request.

Table games and derivatives approved for play in the casino are:

■ Baccarat;

■ Big Wheel;

■ Blackjack (with Super Sevens option);

■ Caribbean Stud Poker;

■ Craps;

■ Let It Ride;

■ Mini Baccarat;

■ Pai Gow;

■ Roulette;

■ Sic-Bo;

■ Star Keno; and

■ Two-Up.

Various provisions of the Act prescribe that the Authority must also approve all

operational arrangements connected with the conduct and supervision of gaming

in the casino including:- approval of all gaming equipment and facilities; the casino

floor layout and table configurations; gaming staff training syllabi; dealing and

surveillance procedures; cashier and pit operations etc.

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With the completion of a second full year of operations at the permanent facility,

Star City has continued to consolidate and revise the casinoÕs administrative and

operational procedures. Of the large number of gaming related submissions

processed during the year, approvals granted include:

Ð modifications to the games mix and optional casino floor layout plans;

Ð changes to the format of accountable forms and to procedures for documenting

the minimum information required on approved forms;

Ð amendments to the rules and operating procedures for the game of Star Keno;

Ð the introduction of a Premium Chip Commission Play Program which tracks

international commission play and rebates payable on the basis of Ôpremium chipÕ

turnover (as opposed to Ônon negotiable chipÕ turnover);

Ð amendments to Craps dealing procedures to remove anomalies identified

between discretionary and obligatory calls made by the Ôstick personÕ;

Ð the installation of dual tray chip floats on Blackjack and 7 seater Mini Baccarat

tables;

Ð revised pit procedures to provide for the use of new table inventory slips and

dual tray chip floats;

Ð revised gaming table opening/closing procedures to ensure that the maximum

number of tables permitted to be used in the casino is not exceeded;

Ð revised Security Department internal controls and operating procedures;

Ð revised Surveillance Department internal controls and operating procedures;

Ð new key control and drop box collection procedures;

Ð new gaming equipment including new note processing machines and upgraded

chip sorting machines;

Ð amendments to the rules and dealing procedures for the game of Blackjack to

provide greater flexibility in the application of rules for doubling and splitting;

Ð approval of variations to Baccarat/Mini Baccarat dealing procedures to provide

greater flexibility in the application of approved dealing options; and

Ð approval of automated CD ROM based training programs for the games of

Pai Gow, Caribbean Stud, Big Wheel and Sic Bo.

Tournaments

Approved rules for the conduct of tournaments, as distinct from the rules of games

for tournament play, require the casino operator to make separate application to the

Authority for approval of all tournament proposals.

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As part of the approval process, the Authority reviews all tournament documentation

including the rules, proposed pit operating procedures and conditions of entry for

individual tournaments.

During the reporting year, the Authority approved of the conduct of 5 one-off

Blackjack tournaments and of regular monthly tournaments being conducted on

a optional basis on the first Tuesday of each month for a twelve month period from

October 1999. Approval was also granted for the conduct of 4 Baccarat/Mini

Baccarat tournaments and for an inaugural Roulette tournament conducted

on 26 March 2000.

International Junket/Premium Player Commission Programs

In October 1998 the NSW Government approved a separate 10% flat tax rate for

gaming revenue derived from the casinoÕs International Junket/Premium Player

Commission Programs.

The reduced tax rate on gaming revenue earned from the programs allows the

operator to offer commission rebates based on betting turnover to attract premium

foreign gamblers (international Ôhigh rollersÕ) to the casino.

As part of the Duty Agreement, Star City is required to pay an annual non-

refundable advance duty payment of $6 million in two half yearly installments of

$3 million. When international commission program revenue exceeds $60 million

in a calendar year, the additional duty is payable at four weekly intervals.

Comprehensive internal control procedures governing international commission

play operations have been established. The approved internal control procedures

function to ensure the isolation and accurate tracking of commission play revenue

for taxation purposes and to restrict the registration of program participants to bona

fide overseas residents.

To cater for the additional patronage attracted by the commission programs,

the maximum number of gaming tables permitted to be used in the casino was

increased by Ministerial Direction of May 1999 from 200 to 210 Ð subject to a

number of conditions ensuring that local patrons are not displaced from gaming

tables in favour of commission program players.

Installation of the additional tables has involved modifications to the casino floor

layout and the development of improved table opening and closing controls to

ensure compliance with table usage restrictions.

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CASINO INTERNAL CONTROLS

Sections 124 and 125 of the Act require the casino operator to maintain and

implement a documented system of approved internal controls and administrative

and accounting procedures governing virtually all facets of the casinoÕs business

operations.

The approved internal controls and procedures function to ensure the security and

integrity of the casinoÕs gaming operations and form the mainstay of the regulatory

and controlling framework in that breaches of approved procedures identified by

government inspectors may incur a range of disciplinary penalties imposed by

the Authority.

The required procedures and controls include:

■ accounting controls and procedures including the standardisation of forms

and the definition of terms to be used in operations in the casino;

■ procedures, forms and, where appropriate, formulas for or with respect to:

*hold percentages and their calculation;

*revenue drop;

*expense and overhead schedules;

*complimentary services;

*salary arrangements;

*personnel practices;

*junkets and premium player activities; and

*cash equivalent transactions.

■ procedures for the conduct and playing of games;

■ procedure and standards for the security of gaming machines and for the

payment and recording of gaming machine prizes;

■ procedures within a cashierÕs cage for the receipt, storage and disbursement

of chips and cash, the cashing of cheques, the redemption of chips and the

recording of all transactions pertaining to gaming operations;

■ procedures for the collection and security of money at the gaming tables and at

other places in the casino where games are conducted and during transfer from

and to a cashierÕs cage;

■ procedures for the transfer of money from the gaming tables and other places in

the casino where games are conducted to other areas of the casino for counting;

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■ procedures and forms for the transfer of money or chips from and to a gaming

area;

■ procedures and security for the counting and recording of revenue;

■ procedures and security for the transfer of money from the casino to a bank

and from a bank to the casino;

■ procedures for the security, storage and recording of chips utilised in the gaming

operations in the casino;

■ procedures and standards for the maintenance, security and storage of gaming

equipment;

■ procedures for the payment and recording of winnings associated with games

where the winnings are paid by cash or cheque;

■ procedures for the issue of chip purchase vouchers and the recording of

transactions in connection with these;

■ procedures for the cashing of cheques and recording of transactions by cheque;

■ procedures for the establishment and use of deposit accounts;

■ procedures for the use and maintenance of security and surveillance facilities,

including closed circuit television systems;

■ procedures for the control of keys used to secure drop boxes and other cashier

and gaming facilities; and

■ procedures governing casino security operations.

As part of the ongoing development of the casinoÕs administrative and operational

arrangements, Star City is undertaking a structured revision of the entire system

of internal controls utilising a programmed project management approach.

During the reporting year, the Authority approved 70 amendments to the internal

controls including 52 amendments to the operatorÕs organisational structure. The 18

operational amendments incorporated a number of full section revisions and multiple

consequential amendments to separate sections of the Internal Controls Manual.

LIQUOR LICENSING

The Act effectively deems Star City to be a Òstand aloneÓ site in relation to the

operation of the Liquor Act 1982 and provides for the modified application of the

Liquor Act to the casino complex.

With regard to the issuance and enforcement of liquor licences, the Authority and

the Director of Casino Surveillance function in similar roles to the Licensing Court

and the NSW Police ServiceÕs Director of Liquor and Gaming.

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Because of the potentially adverse impact on individuals and families of the

consumption of liquor in conjunction with casino gambling, the casino operator

and relevant liquor outlets are generally subject to closer scrutiny by the on site

government inspectors than most other liquor licensees in the State.

Seven liquor licence applications have been approved by the Authority for retail

outlets within the permanent casino complex.

Amendments to the Casino Control Regulation 1995 effected during the reporting

year in relation to the application of the Liquor Act are reported under ÒLegislationÓ.

During the year, Star City finalised a new Responsible Service of Alcohol Training

Program. In principle approval of the new course was given on 17 March 2000.

Revised Security internal controls and procedures also place a greater emphasis

on preventing entry of intoxicated persons to the casino and on identifying/removing

intoxicated persons from the casino premises.

MINORS

The Act prohibits minors from entering or remaining in the casino and requires

the casino operator to ensure that minors do not gain access to the gaming areas.

Amendments to the Casino Control Regulation 1995 which commenced on 3 March

2000 also made it an offence to manufacture a false Ôproof of ageÕ card and to

tamper with or give/lend a proof of age card to another person.

Warning signs are prominently displayed throughout the casino complex and

security staff are required to continuously man casino entrance posts and to sight

proof of age cards of suspected minors attempting to gain entry.

A related issue concerns the incidence of children left unattended and at risk in the

vicinity of the casino complex. Warning signs are displayed in the casino carpark

and other public areas of the complex and brochures in various community

languages advise patrons of the consequences of leaving children unattended

and at risk in the vicinity of the casino.

The casino operator has a policy of excluding from the casino patrons found to have

left minors unattended. During the reporting year 15 persons were excluded for this

reason.

A Child Protection Protocol has been developed in consultation with the Department

of Community Services (DoCS) which provides guidelines to assist casino staff in

identifying and dealing with children suspected to have been left unattended and at

risk in the vicinity of the casino. The casinoÕs Security internal controls have been

amended to incorporate procedures outlined in the Child Protection Protocol.

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EXCLUSION ORDERS

Exclusion Orders have been issued for a number of reasons including:- by direction

of the NSW Commissioner of Police; gaming related incidents; minor assault and

theft; disorderly conduct and leaving children unattended in the vicinity of the casino.

There were 467 exclusion orders issued during the reporting year. Pursuant to

section 79(3) of the Act, a person can make voluntary application to be excluded

from the casino. Orders under this section of the Act may be made by either the

Director of Casino Surveillance or the casino operator. Of the 467 exclusion orders

issued, 243 were self-exclusion orders.

The legislation permits a person who has been excluded from the casino to apply

to the Authority, within 28 days of the issue of the exclusion order, for the exclusion

order to be reviewed. Section 80 of the Act provides that the Authority cannot review

an order imposed at the direction of the Commissioner of Police.

The Authority received 63 requests from persons seeking to have their exclusion

orders reviewed. One application related to an order imposed by the Commissioner

of Police and was not eligible for review.

Of the 62 orders reviewed:

Ð the Authority determined to let 24 exclusion orders stand;

Ð 9 exclusion orders were overruled;

Ð 19 applications for review of exclusion orders were received out of time;

Ð 2 related to voluntary exclusion orders where the Authority awaits further

information from the excluded patrons;

Ð 6 applications were pending a decision by the Authority as at 30 June 2000; and

Ð 2 orders were revoked by the casino operator prior to review.

RESPONSIBLE GAMING ISSUES

In consultation with the Authority, the casino operator has developed and implemented

a number of strategies to assist patrons and staff who may be affected by problem

gambling. Specific action taken by the operator includes:

■ The installation of strategically located signage throughout the casino complex

displaying the slogan, ÒBet with your head not over it.Ó

■ The engagement of Wesley Gambling Counselling Services in a permanent

consultant capacity to provide advice on responsible and problem gambling

programs.

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■ A 24-hour crisis intervention service is provided by a Wesley gambling counsellor

and funded by Star City.

■ After consultation with Wesley Gambling Counselling Services, the minimum

exclusion period under Star CityÕs Voluntary Exclusion Program was raised in

February 2000 from 6 to 12 months.

■ Signage at various locations throughout the casino provides contact details for

the Casino Community Benefit Fund sponsored ÒG-LineÓ Ð which offers a 24-hour

multi-lingual telephone counselling and referral service.

■ Pamphlets are available in 13 community languages providing information about

responsible and problem gambling, the Voluntary Exclusion Program and G-Line

contact details.

■ Sponsorship of seminars conducted by ethnic community groups addressing the

issue of problem gambling.

■ Development of a Responsible Gaming Program for Star City employees.

■ Employee assistance counsellor employed to provide gambling counselling,

advice and referrals for staff with gambling problems.

■ ATM machines located away from the gaming areas (as per legislative

requirements).

■ Signs installed on all 1,500 electronic gaming machines advising of available

assistance with problem gambling.

■ An internal Responsible Gaming Committee comprising representatives from

different operational departments reviews and addresses issues relating to

problem gambling and responsible gaming on an on-going basis.

■ All promotional vouchers and tickets to shows in Star CityÕs Lyric theatre and

the Showroom carry the ÒBet with your head not over itÓ slogan.

■ All promotional vouchers display G-Line contact details.

CASINO DUTY AND CASINO COMMUNITY BENEFIT LEVY

Section 114 of the Act provides that casino duty must be paid to the Authority and

that the Authority is to pay these moneys to the Consolidated Fund.

During the reporting period $108.87m was paid in casino duty and $6.0m was paid

in International Commission Play duty. The Casino Community Benefit Levy

amounted to $9.69m.

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CASINO PATRONAGE (Based on Star CityÕs Daily Operating Statistics)

Monthly Patronage 1999 Ð 2000

Refused Entry 1999 Ð 2000

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Jul-99

Aug-99

Sep-99

Oct-99

Nov-99

Dec-99

Jan-00

Feb-00

Mar-00

Apr-00

May-00

Jun-000

100,000

200,000

300,000

400,000

500,000

600,000

700,000

0

500

1,000

1,500

2,000

Jul-99

Aug-99

Sep-99

Oct-99

Nov-99

Dec-99

Jan-00

Feb-00

Mar-00

Apr-00

May-00

Jun-00

25

AUTHORITY OPERATIONS

SECTION 31 INVESTIGATION

Under section 31 of the Act, the Authority is required to investigate the casino

licence every three years from the date of its original grant and form an opinion

as to whether or not:

a) the casino operator is suitable to continue to give effect to the casino licence

and the Act; and

b) it is in the public interest that the casino licence should continue in force.

The AuthorityÕs first s.31 investigation was completed on 15 December 1997.

The second triennial investigation was commenced in November 1999 and is

required to be completed by 15 December 2000 when the Authority must report

its findings and opinion to the Minister, giving reasons for its opinion.

Following media reports relating to allegations of money laundering and the

presence of criminals and undesirable activities in the casino, the Authority

appointed Mr Peter McClellan QC in May 2000 to oversee the investigation

process and to assist the Authority in forming its opinion through the conduct of

an Inquiry under s.143 of the Act. The terms of reference for the investigation were

also broadened to include specific matters considered to be the subject of

community concern.

The initial and expanded Terms of Reference for the investigation are reported at

Appendix VIII and IX respectively.

RISK BASED CASINO SUPERVISION PROJECT

The AuthorityÕs 1998/99 Annual Report foreshadowed a major review of risk

management in regulatory control as a platform for the introduction of a risk based

approach to casino supervision.

A visit to New Zealand by representatives of the Authority and the Director of Casino

Surveillance conducted an exploratory study of the risk based approach to casino

supervision that has been progressively introduced by the New Zealand Department

of Internal Affairs over recent years. As a consequence of this visit, a joint working

party established in early 1999 conducted a number workshops aimed at developing

a project plan applicable to casino regulation in NSW.

In May 2000 the Australasian Gaming RegulatorsÕ Conference adopted a resolution

to work towards a common Australasian approach to casino risk management and

set up a further working party, Òto examine and develop a best practice casino

control model including performance indicators.Ó The first meeting of the working

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group was scheduled for July 2000 with a final report to be delivered to the 2001

RegulatorsÕ Conference.

A further report on the Risk Based Casino Supervision Project will be included in the

AuthorityÕs Annual Report for 2000/2001.

PUBLIC ACCESS Ð CONSULTATION

The Authority has consulted widely on issues related to casino operations and

instituted processes to involve the public in both the casino project and the services

provided by the Authority. Activities include:

■ Representatives of the Authority attend public meetings and industry forums to

provide information and receive feedback on the impact of the casino project.

■ The Authority has introduced a range of procedures including a help hotline

to ensure individuals and organisations with which it interacts receive quality

service.

■ Various staff and Authority members have attended and participated in a number

of conferences and seminars on a wide range of topics pertinent to the AuthorityÕs

responsibilities.

■ Senior Authority staff members are readily accessible and all inquiries are

dealt with by persons who are in a position to provide clear advice and/or

a comprehensive briefing or decision as the case may require.

■ The Authority invites public submissions for all major investigations and,

where appropriate, receives direct representations from complainants or

special interest groups.

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OVERSEAS TRAVEL DURING THE 1999/00 FINANCIAL YEAR

Name & Position Country/ Purpose Dates Leave Cost $A Funding

City Taken

Ms A. Quinlan Hong Kong Leighton 31/7/99 to NIL $4,131.00 Cost fully

(Manager, Investigation 8/8/99 recovered

Casino Facilities) from Leighton

Holdings Ltd

Ms M. Hannon Hong Kong Leighton 31/7/99 to NIL $4,131.00 Cost fully

(Senior Investigator Investigation 8/8/99 recovered

seconded from the from Leighton

Department of Holdings Ltd

Gaming and Racing)

Mr M. Weir Hong Kong Leighton 31/7/99 to NIL $4,131.00 Cost fully

(seconded from Investigation 8/8/99 recovered

NSW Police Service) from Leighton

Holdings Ltd

Mr C. Lee Singapore Give 25/2/00 to NIL $5,844.00 Cost fully

(Acting evidence at 29/2/00 recovered

Chief Executive) court hearing from Star City

at the request Pty Ltd

of Star City

Pty Ltd

REGULATORS CONFERENCE

The Chairperson, the Acting Chief Executive, Authority members, Ms Calkin and

Mr Barbour and deputy member, Mr Allen, attended the Australasian Casino and

Machine Gaming Regulators Conference held in Perth on 5-7 April 2000.

REGULATORY AND LAW ENFORCEMENT LIAISON

The Authority has continued to maintain strong links with relevant law enforcement

agencies and other Australasian casino regulators and received a number of visitors

from interstate and overseas agencies during the year.

In June 2000, the Authority hosted the annual Casino Regulators/Key Law

Enforcement Agencies Meeting attended by representatives from most Australian

states. The annual meetings have been convened for the last four years to discuss

and exchange information on law enforcement issues relating to casino operations.

The Authority also participates in monthly meetings between the Director of Casino

Surveillance, the casino operator, City Central Police, Crime Agencies and other

law enforcement agencies. The monthly meetings include a review of issues relating

to the security and safety of the casino site and surrounding local area.

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During the reporting period, principal agencies with which the Authority dealt include:

Australia

■ Australian Federal Police ■ NSW Police Service

■ AUSTRAC ■ Queensland Office of Gaming Regulation

■ Australian Taxation Office ■ Victorian Casino and Gaming Authority

■ Australian Stock Exchange ■ Tasmanian Department of Treasury

■ Australian Securities and ■ Office of Liquor and Gaming

Investments Commission Commissioner (SA)

■ NSW Crime Commission ■ Northern Territory Licensing Commission

■ National Crime Authority ■ ACT Gambling and Racing Commission

■ Victoria Police ■ Office of Racing Gaming and Liquor (WA)

■ Australian Customs Service ■ Department of Immigration and

Multicultural Affairs

Africa

■ Mpumalanga Gaming Board ■ Eastern Cape Gambling and Betting Board

New Zealand

■ Casino Control Authority ■ Department of Internal Affairs

United States of America

■ New Jersey Casino ■ Nevada Gaming Control Board

Control Commission

■ Colorado Division of Gaming ■ Nevada Gaming Commission

■ New Jersey Division of ■ Oregon Department of State Police

Gaming Enforcement

LITIGATION

An action was commenced before the Anti-Discrimination Board, and subsequently

before the Equal Opportunity Tribunal, by an applicant for a special employee

licence. The applicant alleged that the Authority, in refusing to grant the applicant

a special employee licence, discriminated against the applicant on the ground of

the applicantÕs marital status.

When the Authority challenged the Equal Opportunity TribunalÕs jurisdiction to

hear the matter, the Tribunal determined that it had jurisdiction. On appeal to the

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Supreme Court, the Court held that the Tribunal did not have jurisdiction.

On further appeal by the applicant to the Court of Appeal, the Court of Appeal held

that the Equal Opportunity Tribunal (now the Administrative Decisions Tribunal) has

jurisdiction to determine whether the Authority had unlawfully discriminated against

the applicant.

The matter is now referred back to the Administrative Decisions Tribunal to

determine the substantive issue of whether the Authority had unlawfully

discriminated against the applicant.

LEGISLATION

Amendments to the Casino Control Act 1992

Amendments to the Act for the year ended 30 June 2000 include:

■ Additional regulation making powers relating to the review and revocation of

exclusion orders.

■ Allowing a court, upon finding an excluded person guilty of re-entering the casino,

to postpone its decision to impose a monetary penalty if satisfied that the person

has a gambling problem and the person agrees to undergo gambling counselling.

■ Allowing a court, upon finding the casino operator guilty of a prescribed offence,

to order the casino operator to publish an advertisement to correct any false,

misleading or deceptive advertising and/or to undertake a course of training in

responsible conduct of gambling.

■ Requiring the trustees of the Casino Community Benefit Fund to take into

account any policy guidelines issued to the trustees by the Minister when making

recommendations for payment of money out of the Fund relating to expenditure

for the benefit of the community.

■ Minor amendments to remove or replace references to Òpenal servitudeÓ in the

Act with ÒimprisonmentÓ.

Amendments to Casino Control Regulation 1995

Amendments to the Regulation for the year ended 30 June 2000 include:

■ Restriction of a person from being appointed as manager of licensed liquor

premises in the casino complex if the person is already appointed as manager,

or is a licensee, of premises that are the subject of some other liquor licence

granted under the Liquor Act 1982.

■ New procedures by which a single complaint can be made about disturbance

of the quiet and good order of neighbourhoods caused by patrons in more than

one licensed liquor premises.

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■ The Minister for Gaming and Racing and the Director-General of the Department

of Gaming and Racing made prescribed persons to whom information may be

divulged under the Casino Control Act 1992 without being in breach of the

secrecy provisions in the Act.

■ The holder of a liquor licence relating to a restaurant is allowed up to 3 months

to pay one-quarter of the fee for the grant of a dine-or-drink authority and another

9 months to pay the remainder of the fee.

■ The Authority may provisionally approve a person as the manager of licensed

liquor premises.

■ Liquor licensees are permitted to enter into local liquor accords without infringing

Commonwealth or State competition legislation.

■ Removal of the requirement that an approved plan accompanying a conditional

application for a liquor licence must include any relevant building approval.

■ New offences in respect of fraudulent proof of age cards for the purposes

of licensed liquor premises, and an updated definition of Òproof of ageÓ card.

■ Imposition of further limitations on the advertising of gambling activities

by a casino operator.

■ Prescribing certain offences under the Casino Control Act 1992 as offences

in respect of which courts may make a remedial order requiring corrective

advertising or courses of training to be undertaken.

■ Minor amendments to increase the penalties for certain liquor related offences.

POLICIES AND PRACTICES

PERSONNEL

Section 145 of the Act provides the Authority with the statutory power to employ

staff, second staff from other organisations or to engage consultants to enable it

to exercise its functions under the Act.

The Authority has adopted personnel and employee relations practices generally

consistent with those applied within the public sector.

Public sector salary points have been adopted where relevant. In exercising its

employment powers, the Authority departs from routine public sector practice to

meet its statutory obligations under section 136 of the Act, to ensure that persons

engaged in the administration of the Act are of the highest integrity.

All persons engaged by the Authority, whether a staff member or consultant, are

required to undergo a rigorous probity examination.

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Recruitment

The Authority has adopted merit selection processes incorporating EEO principles

for the recruitment of staff and follows public sector guidelines regarding the

appointment of consultants. The Authority recruited 3 staff during the reporting

period.

Staff Turnover

During the reporting period 7 staff members left the Authority.

Professional Development

The Authority spent $25,000 in direct training and staff development in 1999/00.

The Authority used both skills-based training opportunities and broader developmental

opportunities to assist members and staff in the acquisition of skills and knowledge

necessary for the organisation to meet its objectives and for individual staff to

benefit professionally.

Absenteeism

During the reporting period, staff members took a total of 68.50 days sick leave.

Absenteeism equated to an average of 4.28 days per staff member. Effective sick

leave monitoring practices are in place.

Staffing Levels/Contracting Out/Consultants

Section 145(1) of the Act empowers the Authority to:

■ employ staff;

■ arrange for the use of the services of any staff (by secondment or otherwise)

or facilities of a government department, an administrative office or a public

or local authority;

■ arrange for use of the services of police officers; and

■ engage such consultants as it requires to exercise its functions.

Heavy emphasis continued to be placed on the use of consultants in relation

to relevant aspects of the casino project Ð refer to Appendix IV.

During 1999/00 the Authority had an average of 16 permanent staff, not including

Authority members or temporary assistance.

The Authority recovered a significant proportion of its consultancy costs from the

casino operator or other parties as part of the conditions of relevant legal agreements

which enable the Authority to recover the cost of assessing matters for approval.

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The Authority contracts out most of its non core business such as security, system

development, payroll and cleaning and continues to investigate the possibility of

future opportunities to contract out other functions or enter cooperative

arrangements with other agencies.

Risk Management and Insurance

The Authority is a participant in the NSW Treasury Managed Fund which covers

workersÕ compensation, property and other areas of general insurance.

Information Technology

A committee comprising, the Chief Executive, the Operations Manager and the

Manager, Technical Support continues to oversee the AuthorityÕs information

technology systems.

The systems and network successfully supported the AuthorityÕs operational

requirements during 1999/2000. Additional systems were developed as required

to support Authority investigations during the period.

The AuthorityÕs web site has been enhanced with additional services and further

development is planned over the next 12 months in line with the GovernmentÕs

Electronic Service Delivery policy. Authority staff have been given access to the

internet via a gateway/firewall. Internet access has proven beneficial in the areas

of research and communication with other organisations.

Year 2000 Compliance Project.

The Year 2000 period passed uneventfully for the Authority. There were no systems,

network or security issues to address due to date changes or any other problems.

All rectification work had been completed in line with Government guidelines.

POLICIES

Equal Employment Opportunity (EEO)

The Authority complies with its reporting responsibilities and rigorously applies the

principles of EEO in its operational functions.

As reported in previous years, the Authority has continued to place an emphasis

on providing developmental opportunities for staff at all levels and has achieved

further success in multi-skilling through the expansion of responsibilities and the

provision of opportunity to act in higher duty positions. All staff members have

been provided with opportunities to attend a wide range of training courses,

seminars and conferences.

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As at 30 June 2000, women and people with culturally diverse backgrounds

accounted for 56% and 31% respectively of the AuthorityÕs staff with substantial

representation at senior levels.

Refer to Appendix V for 1999/2000 EEO statistical information.

Ethnic Affairs Report

The Authority fully recognises the culturally diverse nature of the casino environment

and the different needs of patrons and staff from non-English speaking backgrounds.

In this regard the Authority continues to:

Ð monitor casino exclusions and complaints and take action where necessary

to ensure that patrons are not disadvantaged by language or other constraints

related to ethnicity;

Ð ensure that signage and programs provided by the casino operator to address

problem gambling and other issues are available in a range of community

languages; and

Ð have staff available with various language skills.

Privacy Management Plan

In accordance with the Privacy and Personal Information Protection Act 1998,

the Authority has developed a Privacy Management Plan which commenced

on 1 July 2000.

The Plan is based on twelve ÔInformation Protection PrinciplesÕ which set out

standards for the collection, use, storage and disposal of personal information

collected by staff of the Authority. The Plan also addresses privacy codes of

practice and procedures for handling internal reviews and is available for

public inspection at the Authority.

Disability Action Plan

In accordance with the Disability Discrimination Act 1992 and the Disability Services

Act 1993, the Authority has developed a draft Disability Action Plan. The Disability

Action Plan is aimed at eliminating discrimination against people with disabilities

whether they are clients of the Authority or Authority employees.

The plan will be reviewed and updated every three years in line with the NSW

Government Disability Policy Framework.

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Occupational Health and Safety

The AuthorityÕs working environment is designed to meet best practice occupational

health and safety standards. The working environment incorporates technology and

equipment that is appropriately maintained.

Authority staff members have been trained in fire emergency procedures and

participate in drills conducted by the building management. Staff members are

nominated as wardens in case of emergency.

One staff member is trained in first aid and there were no instances of time lost due

to work related injuries.

Freedom of Information (FOI)

Formal requests made under the FOI Act for access to documents held by the

Authority are to be addressed to the Chief Executive and accompanied by a $30

application fee.

FOI inquiries should be directed to telephone number (02) 9392 2320 during the

AuthorityÕs office hours.

Refer to Appendix VI for details of FOI requests for the reporting period.

Internal Audit Charter

The AuthorityÕs Internal Audit Charter provides the framework for internal audit in

compliance with section 11(2) of the Public Finance and Audit Act 1983.

In addition, the Audit Committee reviews and oversees the AuthorityÕs risk

management and financial controls.

Guarantee of Service

The AuthorityÕs commitment to quality customer service and the principles of

continuous improvement are demonstrated in its current Guarantee of Service

and the operations of its Research and Corporate Governance Committees

which monitor performance and customer service issues.

Fraud Control Manual

The Authority has sound fraud control practices in place based on a revised

Fraud Control Manual coupled with staff awareness presentations of relevant

ICAC material.

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Corporate Plan

The AuthorityÕs Corporate Plan was the subject of review by the AuthorityÕs

Corporate Governance Committee. Work has commenced on a revised plan

which is expected to be finalised during the 2000/2001 reporting year.

Code of Conduct and Ethics

The AuthorityÕs Code of Conduct and Ethics has been reviewed to confirm

compliance with the specific responsibilities of Authority staff under the Casino

Control Act.

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3 | REPORTS

REPORTS REQUIRED UNDER SECTION 154 OF THE ACT

154(a) Details of any casino licence granted during the year

No licences granted.

154(b) The number of licences granted under Part 4 of the Act

The Authority granted:

Ð 702 provisional special employee licences; and

Ð 460 full special employee licences.

154(c) Details of any changes to the conditions of a licence made by the

Authority during the year

There were 1734 changes to conditions of licences issued under Part 4

of the Act to casino employees. The vast majority of these changes related

to variations to permit the particular employees to deal additional games.

A small number of variations to conditions of licences related to the relevant

persons changing their functions from one operating division of the casino

to another.

154(d) Details of any disciplinary action taken by the Authority against the

casino operator during the year

No disciplinary action pursuant to s.23 of the Act was taken against the

casino operator during the year.

*The $25,000 fine payment noted in the ÒReview of Financial ResultsÓ

relates to disciplinary action taken during the 1998/1999 reporting year.

154(e) Summary of any disciplinary action taken by the Authority against

persons licensed under Part 4

Section 59(1) of the Act sets out the nature and grounds for disciplinary

action that the Authority may take in relation to person licensed under part

4 of the Act. Section 59(2) of the Act provides that the Director of Casino

Surveillance may, on his or her own motion (and must at the direction of

the Authority), inquire into whether there are grounds for disciplinary action

against a licensee and report to the Authority on the matter. The Authority

considers the Director's recommendations and any submissions made by

the licensee in defence or mitigation of the circumstances surrounding

disciplinary proceedings.

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In the reporting year, five disciplinary matters relating to special employees were

dealt with as follows:

Item Outcome

■ Contravened condition of ■ Grounds for disciplinary

licence Ð provided part of list action not sustained

prepared under s.83 of the Act

■ Convicted of drive motor ■ Letter of censure

vehicle whilst licence cancelled

■ Convicted for high range ■ Licence suspended for 2 weeks

prescribed concentration of alcohol

■ Convicted for driving whilst ■ Licence suspended for 4 weeks

under influence and refusing

to submit to breath analysis

■ Convicted for mid range ■ Letter of censure

prescribed concentration of alcohol

154(f) Details of any directions given by the Minister under Section 5 of the

Act (directions by the Minister to protect the integrity of casino gaming).

No Ministerial Directions issued.

154(g) Summary of the outcome of any investigation or review carried out by

the Authority during the year.

Summaries of the outcome of investigations and reviews undertaken during

the year are provided below.

Exclusion Order Reviews

The Authority received 63 requests from persons seeking a review of Orders

excluding them from the casino.

Of the 63 applications:

Ð the Authority determined to let 24 exclusion orders stand;

Ð 9 exclusion orders were overruled;

Ð 19 applications for review of exclusion orders were received out of time;

Ð 2 applications related to voluntary exclusion orders where the Authority awaits

further information from the excluded patrons;

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Ð 2 orders were revoked by the casino operator prior to review;

Ð 6 applications remained under consideration as at 30 June 2000; and

Ð 1 application related to an order imposed at the direction of the Commissioner

of Police and was not eligible for review.

Leighton Investigation

Leighton Properties Pty Ltd (LPPL) a subsidiary of Leighton Holdings Limited,

sought the approval of the Authority to terminate certain trust arrangements which

govern LPPLÕs involvement in the management of the casino and LPPLÕs

shareholding in Star City Holdings Limited. If the LPPL trust arrangements were

terminated, LPPL and its parent, Leighton Holdings Limited, would have become

close associates (effectively holding a 15% interest in the management company)

of Star City Pty Limited which holds the casino licence.

LPPLÕs request to the Authority for approval to terminate the trust arrangements

triggered the provisions of section 35 of the Act which effectively require the

Authority to inquire into whether LPPL and Leighton Holdings Limited were suitable

to be associated with the management of the casino. The Authority commenced its

inquiry into this issue in the 1998/99 reporting year.

As part of its inquiry into LPPLÕs request, the Authority sought submissions from

interested parties in relation to the above mentioned issues. Some 54 submissions

were received and these are available for examination at the AuthorityÕs premises.

The Authority also appointed Sir Laurence Street as Process Auditor of the inquiry.

On 20 September 1999, the Authority decided not to approve LPPLÕs request to

terminate the trust arrangements which govern LPPLÕs involvement in the

management of the casino and LPPLÕs shareholding in Star City Holdings Limited.

The Authority also decided to favourably consider an extension of time for the sale

of the trust property and to allow LPPL to receive income from the trust. The time

for the sale of the trust property has been extended to 7 December 2020.

TABCORP Investigation

On 7 May 1999, the Authority announced that it had commenced an investigation

into TABCORP Holdings Limited (ÒTABCORPÓ) following receipt of an application

by TABCORP for the Authority to consent to a range of proposed transactions that

could result in a change in the management and ownership of Star City casino.

The Authority is required to inquire into any major change in the state of affairs

of the casino, including the application by TABCORP. Issues which the Authority

addressed in relation to TABCORP include:

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■ Reputation having regard to character, honesty and integrity.

■ Soundness and stability of financial background.

■ Ownership, trust or corporate structure.

■ Possession of, or ability to contribute towards obtaining, the services of persons

who have sufficient experience in the management and operation of a casino.

■ Possession of sufficient business ability to contribute towards maintaining

a successful casino.

■ Whether there is any business association with any person, body or association

nominated by the Authority from time to time and who, in the opinion of the

Authority, is not of good repute having regard to character, honesty and integrity

or has undesirable or unsatisfactory financial sources.

The Authority called for, and received 4, public submissions relating to the

application by TABCORP. At the end of the 1998/99 reporting year an investigation

into the probity and financial stability of TABCORP was undertaken with

Sir Laurence Street appointed as Process Auditor of the Inquiry.

On 30 September 1999, the Authority decided to give its approval to TABCORP to

acquire all of the issued shares and all of the options over un-issued shares in the

capital of Star City Holdings Limited and to enter into other relevant transactions

for the purpose of completing the acquisition.

Section 30 Investigation into the Counterfeit Chips Incident of June 99

During the reporting year, the Authority completed an investigation into an incident in

June 1999 involving the detection of a significant number of high quality counterfeit

$500 chips in the casino.

The purpose of the investigation was to examine the adequacy and appropriateness

of practices and procedures underpinning Star CityÕs alert mechanisms and risk

management strategies.

Since the matter of the investigation report contained sensitive information relating to

Star CityÕs commercial and security operations, the Authority determined not to make

the report public.

Efficiency and Effectiveness Review of the Director of Casino Surveillance

One of the functions of the Authority is to monitor the efficiency and effectiveness

with which the Director of Casino Surveillance (DCS) exercises the functions of

Director under the Act.

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The Director provides the Authority with a monthly compliance report which includes:

■ Matters relating to the supervision and inspection of operations at the casino.

■ Offences in or in relation to the casino and the prosecution of those offences.

■ Matters relating to the licensing of special employees.

■ Matters relating to games that may be played in the casino and the rules of those

games.

■ Responses to issues which the Authority has referred to the Director for analysis

or in connection with matters where the Authority has asked the Director to

provide specific assistance.

In addition to scheduled monthly meetings, the Director and the Chief Executive

of the Authority meet regularly to discuss operational issues and the staff of both

organisations liaise on a daily basis.

During the reporting year, the Authority commenced an efficiency and effectiveness

review of the DirectorÕs operations in accordance with the requirements of

s.141(2)(d) of the Act. This review is currently nearing completion and will be

reported to the Minister in the 2000/2001 financial year.

Details Of Disciplinary Action Against Liquor Licensees Within The Casino

Complex

No disciplinary action taken during the reporting period.

PUBLICATIONS

In addition to Annual Reports, the Authority has a number of documents available

to members of the public at the AuthorityÕs premises and on its web site including:

■ Report on the Location, Size and Style of the New South Wales Casino

■ The Sydney Casino, Australia: Invitation Document;

■ Government Preferences relating to the Sydney Casino;

■ Report by Murray Tobias QC dated December 1994 of an inquiry undertaken

pursuant to section 143(4) of the Act (also on Web site);

■ Report of Investigation Pursuant to Section 31 of the New South Wales Casino

Control Act 1992 dated December 1997 (also on Web site);

■ Gazetted Rules of Casino Games and previous Annual Reports are located

on the AuthorityÕs Internet Home Page at www.casinocontrol.nsw.gov.au

3

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4 | FINANCIAL REVIEW

REVIEW OF FINANCIAL RESULTS

Administered Revenues (Crown Revenues)

The Authority collected and remitted the following crown revenues to the State in

the financial year ended 30 June 2000. These revenues were not recorded in the

AuthorityÕs financial statements.

1999/2000 1998/1999

$Õ000 $Õ000

Casino duty 108,872 108,276

International duty 6,000 3,000

Community benefit levy 9,689 9,565

Casino special employee licensing fees 367 125

Controlled contracts fees 44 82

Dine-or-drink authority 0 15

Penalties 25 3

TOTAL 124,997 121,066

Administered (Crown) Revenues 1998/1999 & 1999/2000

■ 1999/2000

■ 1998/1999

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20,000

40,000

60,000

80,000

100,00

120,000

Casino duty

International duty

Community benefit levy

Casino special employee

licensing fees

Controlled contracts fees

Dine-or-drink authority

Penalties

42

BUDGET REVIEW 1999/2000

The Authority has a surplus of $89,000 in 1999/2000 compared to the budgeted

deficit of $145,000.

Total income for the year was $3,199,000 and was $174,000 less than budget.

This was mainly due to:

* Acceptance by the State of Authority liabilities on long service leave and

superannuation entitlements were $61,000 less than budget.

* User charges were $165,000 below budget due to the budgeted revenue

of $400,000 from controlled contracts fees did not occur as proposed changes

to the administration of controlled contracts did not eventuate. This was partly

offset by:

Ð Recovery of expenses from Leighton in connection with the Leighton

investigation exceeded budget by $161,000

Ð Recovery of expenses from TABCORP Holdings Ltd in connection with the

TABCORP investigation exceeded budget by $72,000

* Interest receivable was $44,000 above budget due to higher bank deposit

balance than budget.

Total expenditure for the year was $3,110,000 and was $408,000 less than budget

due to:

* Savings of $250,000 in employee related expenses due to vacancies not

yet filled.

* The provision of $400,000 for controlled contracts administration was not required

as proposed changes to the administration of controlled contracts did not

eventuate. This was partly offset by:

Ð Leighton investigation expenses exceeded budget by $142,000 (total costs

were fully recoverable from Leighton).

Ð TABCORP investigation expenses exceeded budget by $70,000 (total costs

were fully recoverable from TABCORP).

Ð Section 31 investigation expenses exceeded budget by $14,000.

Ð Other operating expenses exceeded budget by $77,000.

* Actual provision for depreciation was $55,000 less than budget.

4

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The actual Income and Expenditure of the Authority in 1999/2000 as compared to

budget is summarised below:

1999/2000 1999/2000 Variance

Actual Budget

$Õ000 $Õ000 $Õ000

Income:

Consolidated fund recurrent appropriation 2,232 2,220 12

Consolidated fund capital appropriation 56 60 (4)

Acceptance by the State of Authority

liabilities (on long service leave and

superannuation entitlements) 67 128 (61)

User charges 780 945 (165)

Interest 64 20 44

3,199 3,373 (174)

Expenditure:

Employee related 1,394 1,644 (250)

Other operating expenses 1,561 1,664 (103)

Depreciation 155 210 (55)

3,110 3,518 (408)

Surplus/(Deficit) for the year 89 (145) 234

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BUDGET FOR 2000/2001$Ô000

(a) Operating Budget

Expenses

Operating Expenses

Employee Related 1,690

Other Operating Expenses 1,428

Depreciation 180

Total Expenses 3,298

less: Retained Revenues

User Charges 269

Investment Income 19

Total Revenues 288

Net Costs of Services 3,010

less: Non-Funded Expenses

Depreciation 180

Acceptance by State of AuthorityÕs Liabilities 151

Consolidated Fund Recurrent Appropriation 2,679

(b) Capital Budget

Replacement of Plant and Equipment 60

Consolidated Fund Capital Appropriation 60

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SOURCE OF FUNDS 1999/2000

The source of funds for the year ended 30 June 2000 is shown in the following

diagram:

Source of Funds for the Year Ended 30 June 2000

Although the Consolidated Fund was the main source of funds (72%), a relatively

high proportion of the funds (28%) was obtained from retained revenues.

Under the Casino Control Act 1992 and other legal agreements between the

Authority and Star City Pty Ltd, the Authority has recovered in the financial year

ended 30 June 2000 $194,000 being legal and consultancy costs in connection

with the control and operation of the Star City casino.

The Authority has received $272,000 from TABCORP being recovery of expenses

from TABCORP Holdings Limited in connection with the TABCORP investigation

(This included $182,000 deposit received from TABCORP in the financial year ended

30 June 1999 but not utilised and was carried forward to 1999/2000).

The Authority has also received $306,000 from Leighton Holdings Limited being

recovery of expenses from Leighton in connection with the Leighton investigation

(This included $96,000 deposit received from Leighton in the financial year ended

30 June 1999 but not utilised and was carried forward to 1999/2000).

Other source of funds included long service leave and superannuation liabilities

assumed by the Crown Entity (2%) and interest on bank deposits (2%).

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Interest on Bank Deposits 2%

State Liabilities — LSL & Super 2%

User Charges 24%

Consolidated Fund Capital Appropriation 2%

Consolidated Fund Recurrent Appropriation 70%

46

APPLICATION OF FUNDS 1999/2000

The application of funds for the year ended 30 June 2000 is shown in the following

diagram:

Application of Funds for the Year Ended 30 June 2000

* Casino Project (6%) Ð these costs were recoverable from Star City Pty Ltd.

See Source of Funds 1999/2000.

* Leighton Investigation (10%) Ð In November 1998, the Authority commenced

an inquiry into the probity of the Leighton group of companies following an

application by Leighton Holdings Ltd. For approval to become involved in the

management and operation of the Star City casino. The investigation was

completed in September 1999. See Source of Funds 1999/2000.

* TABCOPRP Investigation (9%) Ð In May 1999 the Authority commenced an

investigation into TABCORP Holdings Ltd following receipt of an application by

TABCORP for the Authority to consent to a range of proposed transactions that

could result in a change in the management and ownership of Star City casino.

The investigation was completed in 1999. See Source of Funds 1999/2000.

* section 31 investigation (2%) Ð The second 31 investigation commenced in

late 1999 and in this financial year the Authority has incurred $64,000. The

investigation must be completed by December 2000.

* Rent on Office Premises (12%) * Other Operating Expenses (13%)

* Salaries and Wages (42%) * Other Employee Related Expenses (4%)

* Capital Expenditure (2%)

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Other Employee Related 4%

Capital Expenditure 2%

Casino Project 6%

Tabcorp Investigation 9%

Leighton Investigation 10%

Section 31 Investigation 2%Salaries 42%

Other Operating Expenses 13%

Rent 12%

47

ACCOUNT PAYMENT PERFORMANCE 1999/2000

The following table shows payments made from the date of receipt of the invoices.

$Õ000 %

Current 2,661 85.5

Between 16 and 30 days 228 7.3

Between 30 and 60 days 186 6.0

Between 60 and 90 days 38 1.2

Over 90 days 0 0.0

3,113 100.0

Account Payment Performance 1999/2000

■ Current 85.5%

■ Between 16 and 30 days 7.3%

■ Between 30 and 60 days 6.0%

■ Between 60 and 90 days 1.2%

1.2%

6.0%

7.3%

85.5%

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4 | F INANCIAL REVIEW

49

START OF AUDITED FINANCIAL STATEMENTS

CASINO CONTROL AUTHORITY

Financial Statements For The Year Ended 30 June 2000

Pursuant to Section 41C of the Public Finance and Audit Act 1983, I state that:

(a) the accompanying financial statements have been prepared in accordance

with the provisions of the Public Finance and Audit Act 1983, the Financial

Reporting Code for Budget Dependent General Government Sector Agencies,

the applicable clauses of the Public Finance and Audit (General) Regulation

1995 and the TreasurerÕs Directions;

(b) the statements exhibit a true and fair view of the financial position and

transactions of the Authority; and

(c) there are no circumstances which would render any particulars included

in the financial statements to be misleading or inaccurate.

Brian Farrell

Chief Executive

12 September 2000

4 | F INANCIAL REVIEW

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CASINO CONTROL AUTHORITY

Operating Statement for the Year Ended 30 June 2000

Notes Actual Budget Actual

2000 2000 1999

$Õ000 $Õ000 $Õ000

Expenses

Operating expenses

Employee related 2(a) 1,394 1,644 1,642

Other operating expenses 2(b) 1,561 1,664 1,408

Depreciation 2(c) 155 210 209

Total Expenses 3,110 3,518 3,259

Less:

Retained Revenue

Sales of goods and services 3(a) 780 945 599

Investment income 3(b) 64 20 58

Total Retained Revenue 844 965 657

NET COST OF SERVICES 14 2,266 2,553 2,602

Government Contributions

Recurrent appropriation 4 2,232 2,220 2,306

Capital appropriation 4 56 60 48

Acceptance by the Crown Entity 5 67 128 144

of employee entitlements and

other liabilities

Total Government Contributions 2,355 2,408 2,498

SURPLUS/(DEFICIT) FOR THE YEAR 89 (145) (104)

The accompanying notes form part of these statements

4 | F INANCIAL REVIEW

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CASINO CONTROL AUTHORITY

Statement of Financial Position as at 30 June 2000

Notes Actual Budget Actual

2000 2000 1999

$Õ000 $Õ000 $Õ000

ASSETS

Current Assets

Cash 6 1,530 1,282 1,653

Receivables 7 81 160 130

Other 8 14 30 14

Total Current Assets 1,625 1,472 1,797

Non-Current Assets

Plant and equipment 9 337 274 436

Total Non-Current Assets 337 274 436

Total Assets 1,962 1,746 2,233

LIABILITIES

Current Liabilities

Accounts payable 10 96 110 111

Employee entitlements 11 128 200 195

Other 12 40 40 318

Total Liabilities 264 350 624

Net Assets 1,698 1,396 1,609

EQUITY

Accumulated funds 13 1,698 1,396 1,609

Total Equity 1,698 1,396 1,609

The accompanying notes form part of these statements

4 | F INANCIAL REVIEW

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CASINO CONTROL AUTHORITY

Statement of Cash Flows for the Year Ended 30 June 2000

Notes Actual Budget Actual

2000 2000 1999

$Õ000 $Õ000 $Õ000

CASH FLOWS FROM OPERATING ACTIVITIES

Payments

Employee related (1,439) (1,556) (1,539)

Other (1,607) (2,009) (1,491)

Total Payments (3,046) (3,565) (3,030)

Receipts

Sales of goods and services 584 945 757

Interest received 63 40 55

Other Ð Ð 279

Total Receipts 647 985 1,091

Cash Flows From Government

Recurrent appropriation 2,232 2,220 2,306

Capital appropriation 56 60 48

Cash reimbursements from the Crown Entity 44 40 44

Net Cash Flows From Government 2,332 2,320 2,398

NET CASH FLOWS FROM

OPERATING ACTIVITIES 14 (67) (260) 459

CASH FLOWS FROM

INVESTING ACTIVITIES

Purchases of plant and equipment (56) (60) (49)

NET CASH FLOWS FROM

INVESTING ACTIVITIES (56) (60) (49)

NET INCREASE / (DECREASE) IN CASH (123) (320) 410

Opening cash and cash equivalents 1,653 1,602 1,243

CLOSING CASH AND CASH EQUIVALENTS 15 1,530 1,282 1,653

The accompanying notes form part of these statements

4 | F INANCIAL REVIEW

53

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4 | F INANCIAL REVIEW

54

CASINO CONTROL AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS OF THE

CASINO CONTROL AUTHORITY FOR THE YEAR ENDED 30 JUNE 2000

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Reporting Entity

The New South Wales Casino Control Authority (ÒAuthorityÓ), as a reporting

entity, was established on 22 September 1992, pursuant to the provisions

of the Casino Control Act 1992 (ÒActÓ). The AuthorityÕs main objectives under

Section 140 of the Casino Control Act are to maintain and administer systems

for the licensing, supervision and control of casino operations in New South

Wales.

These financial statements report on all the operating activities under the

control of the Authority.

(b) Basis of Accounting

The AuthorityÕs financial statements are a general purpose financial report

which has been prepared on an accruals basis and in accordance with:

■ applicable Australian Accounting Standards;

■ other authoritative pronouncements of the Australian Accounting

Standards Board (AASB);

■ Urgent Issues Group (UIG) Consensus Views;

■ the requirements of the Public Finance and Audit Act and Regulations;

and

■ the Financial Reporting Directions published in the Financial Reporting

Code for Budget Dependent General Government Sector Agencies or

issued by the Treasurer under section 9(2)(n) of the Act.

Where there are inconsistencies between the above requirements, the

legislative provisions have prevailed.

The Treasurer has granted an exemption under Section 41BA of the Public

Finance and Audit Act from compliance with the requirements of Division 3

of Part 3 of the Public Finance and Audit Act, which normally applies to

a statutory body.

In the absence of a specific Accounting Standard, other authoritative

pronouncement of the AASB or UIG Consensus View, the hierarchy of other

pronouncements as outlined in AAS 6 ÒAccounting PoliciesÓ is considered.

4 | F INANCIAL REVIEW

55

The financial statements are prepared in accordance with the historical cost

convention. All amounts are rounded to the nearest one thousand dollars and

are expressed in Australian currency. The accounting policies adopted are

consistent with those of the previous year.

(c) Administered Activities

The Authority administers, but does not control, certain activities on behalf

of the Crown Entity. It is accountable for the transactions relating to those

administered activities but does not have the discretion, for example, to deploy

the resources for the achievement of the AuthorityÕs own objectives.

Transactions and balances relating to the revenues of administered activities

are not recognised as the agencyÕs revenues, but are disclosed in Note 19 as

ÒAdministered RevenuesÓ. All statutory revenue is accounted for by the

Treasury and does not appear in the AuthorityÕs accounts.

The accrual basis of accounting and all applicable accounting standards have

been adopted in the reporting of the administered activities.

(d) Revenue Recognition

Revenue is recognised when the Authority has control of the goods or right to

receive, it is probable that the economic benefits will flow to the Authority and

the amount of revenue can be measured reliably.

(i) Parliamentary Appropriations

From this financial year there is a change in accounting policy for the

recognition of parliamentary appropriations. Parliamentary

appropriations are recognised as revenues when the Authority obtains

control over the assets comprising the appropriations. Control over

appropriations are normally obtained upon the receipt of cash.

An exception to the above is when appropriations are unspent at year-

end. In this case, the authority to spend the money lapses and generally

the unspent amount must be repaid to the Consolidated Fund in the

following year. As a result, unspent appropriations are now accounted

for as liabilities rather than revenue.

For the year ending 30 June 2000, the Authority did not have any

unspent appropriation and hence there was no amount owing to the

Consolidated Fund.

This change in accounting policy has resulted in a change in the

Summary of Compliance with Financial Directives.

4 | F INANCIAL REVIEW

56

It is impracticable to restate the comparatives for this change in

accounting policy as the Authority was not required to determine

any final amount owed to the Consolidated Fund for the year

ending 30 June 1999.

(ii) Sales of Goods and Services

Revenue from the sale of goods and services comprises revenue from

the provision of products or services ie user charges. User charges are

recognised as revenue when the Authority obtains control of the assets

that result from them.

(iii) Investment Income

Interest revenue is recognised as it accrues.

(e) Employee Entitlements

(i) Wages and Salaries, Annual Leave, Sick Leave and On-Costs

Liabilities for wages and salaries and annual leave are recognised and

measured as the amount unpaid at the reporting date at current pay

rates in respect of employeeÕs services up to that date.

The AuthorityÕs employees are only entitled to non-vesting sick leave.

Based on the AuthorityÕs history, it is highly improbable that sick leave

taken in the future will be greater than the entitlements accrued in the

future. According to Treasury guidelines, the unused entitlements

existing at the end of the financial year will not be considered to give

rise to any liability.

The outstanding amounts of payroll tax, workersÕ compensation

insurance premiums and fringe benefits tax, which are consequential

to employment, are recognised as liabilities and expenses where the

employee entitlements to which they relate have been recognised.

(ii) Long Service Leave and Superannuation

The AuthorityÕs liabilities for long service leave and superannuation are

assumed by the Crown Entity. The Authority accounts for the liability as

having been extinguished resulting in the amount assumed being shown

as part of the non-monetary revenue item described as ÒAcceptance by

the Crown Entity of Employee Entitlements and other LiabilitiesÓ.

Long service leave is measured on a nominal basis. The nominal

method is based on the remuneration rates at year end for all

employees with five or more years of service. It is considered that this

4 | F INANCIAL REVIEW

57

measurement technique produces results not materially different from

the estimate determined by using the present value basis of measurement.

The superannuation expense for the financial year is determined by

using the formulae in the TreasurerÕs directions. The superannuation

expense for certain superannuation schemes (ie Basic Benefit and First

State Superannuation Scheme) is calculated as a percentage of the

employeesÕ salary. For other superannuation schemes (ie State

Superannuation Scheme and State Authorities Superannuation

Scheme), the expense is calculated as a multiple of the employeeÕs

superannuation contributions.

(f) Insurance

The AuthorityÕs insurance activities are conducted through the Treasury

Managed Fund Scheme of self insurance for Government agencies.

The expense (premium) is determined by the Fund Manager based on

past experience.

(g) Acquisitions of Assets

The cost method of accounting is used for the initial recording of all

acquisitions of assets controlled by the Authority. Cost is determined as the

fair value of the assets given as consideration plus the costs incidental to

the acquisition.

Assets acquired at no cost, or for nominal consideration, are initially

recognised as assets and revenues at their fair value at the date

of acquisition.

Fair value means the amount for which an asset could be exchanged between

a knowledgeable, willing buyer and a knowledgeable, willing seller in an armÕs

length transaction.

(h) Plant and Equipment

Computer equipment, computer software, office equipment, furniture and

fittings costing at least $5,000 are capitalised except for group assets

(assets with interrelated functions), where all additions regardless of amount

are capitalised.

(i) Depreciation

Depreciation is provided for on a straight line basis for all depreciable assets

so as to write off the depreciable amount of each asset as it consumed over

its useful life to the entity.

4 | F INANCIAL REVIEW

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Depreciation rates by class of assets are:

* computer equipment 25% pa

* computer software 25% pa

* office equipment 25% pa

* office furniture 10% pa

* office fittings depreciation rates based on the number

of years from the date of purchase to the

expiration of the office lease of the Authority

in 2003

(j) Leased Assets

A distinction is made between finance leases which effectively transfer from

the lessor to the lessee substantially all the risks and benefits incidental to

ownership of the leased assets, and operating leases under which the lessor

effectively retains all such risks and benefits.

The Authority has no finance leases.

Operating lease payments are charged to the Operating Statement in the

periods in which they are incurred.

(k) Financial Instruments

Financial instruments of the Authority comprise cash and cash at bank,

receivables and trade creditors and accruals.

In accordance with AAS 33 ÒPresentation and Disclosure of Financial

InstrumentÓ information is disclosed in Note 21.

(l) Year 2000 Compliance Costs

Computer equipment and software with estimated useful life to the entity of

more than 1 year are capitalised as plant and equipment in accordance with

Note 1(h) and depreciated over its useful life in accordance with Note 1(i).

Other related expenses (eg. consultancy costs) are charged to the Operating

Statement in the periods in which they are incurred.

(m) Accounting for the Goods and Services Tax (GST)

The AuthorityÕs accounting for the goods and services tax (GST) is in

accordance with Abstract 31 and consensus view of the Urgent Issues Group.

4 | F INANCIAL REVIEW

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(n) Program Statement

The Casino Control Authority is a single program organisation and therefore

the Operating Statement is a reflection of the Program Statement for the year.

(o) Long Term Leases of Land

On 14 December 1994, the Authority leased a parcel of land bounded by

Pyrmont Street, Jones Bay Road and Edward Street, Pyrmont (the permanent

casino site), to Sydney Harbour Casino Properties Pty. Ltd. for 99 years

(ie. Up to 13 December 2093).

On 5 December 1997, the Authority also leased another block of land (the

switching station site) adjacent to the above blocks of land to Sydney Harbour

Casino Properties Pty. Ltd. for a period up to 13 December 2093.

Although the Authority holds legal title to the above blocks of land and hence

retains the reversionary right to them, they have been recognised at no value

at the inception of the long-term leases.

The value of the reversionary right will start to emerge towards the end of

the leases.

2. EXPENSES

(a) Employee related expenses comprise the following specific items:

2000 1999

$Õ000 $Õ000

Salaries and wages (including Recreation Leave) 1,073 1,212

Superannuation 84 82

Long service leave (23) 56

WorkersÕ compensation insurance 8 6

Payroll tax and fringe benefit tax 48 68

Other - Authority Member fees 204 218

1,394 1,642

Employee related expenses included staff salaries and on-costs relating

to the following projects [also see Note 2(b)]:

(i) TABCORP Investigation ($1,000)

(ii) Leighton Investigation ($19,000)

(iii) Section 31 Investigation ($91,000)

4 | F INANCIAL REVIEW

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(b) Other operating expenses

2000 1999

$Õ000 $Õ000

AuditorÕs remuneration 24 24

Rental expenses relating to operating leases 367 373

Insurance 6 7

Other Ð Casino project [sub-note (b)(1)] 193 364

Ð TABCORP investigation [sub-note (b)(2)] 271 135

Ð Leighton investigation [sub-note (b)(3)] 287 89

Ð Casino site remediation work [sub-note (b)(4)] Ð 131

Ð HarrahÕs Investigation Ð 20

Ð Section 31 Investigation [sub-note (b)(5)] 64 Ð

Ð General research 53 49

Ð Legal expenses 30 6

Ð Travelling 15 8

Ð Postage and telephone 39 37

Ð Printing 14 20

Ð Electricity 10 10

Ð Staff training and development 25 18

Ð GST implementation expenses 11 Ð

Ð Other administration expenses 152 117

1,561 1,408

(b)(1) Included legal and consultancy costs in connection with the

control and operation of Star City casino. Under the Casino

Control Act 1992 and other legal agreements between the

Authority and Star City Pty. Ltd., a substantial portion of these

costs were recoverable from Star City Pty. Ltd. [see Note 3(a)]

(b)(2) In May 1999 the Authority commenced an investigation into

TABCORP Holdings Limited following receipt of an application

by TABCORP for the Authority to consent to a range of

proposed transactions that could result in a change in the

management and ownership of Star City casino.

TABCORP was granted approval by the Authority, after an

investigation in 1998, to acquire up to ten percent of the stock

in Star City as an institutional investor. However, the new

investigation was far more detailed as the proposed transaction

resulted in TABCORP effectively controlling Star City casino

and its management.

4 | F INANCIAL REVIEW

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The total costs included travel and investigation expenses,

legal and consultancy costs incurred in the financial year ended

30 June 2000. The relevant staff salaries and on-costs were

included in ÒEmployee related expensesÓ [see Note 2(a)].

The total costs of the investigation (in both 1998/1999 and

1999/2000 and including the relevant staff salaries and on

costs) were $414,113 and were fully recovered from TABCORP

(including an initial advance of $325,000 received from

TABCORP in May 1999).

The investigation was completed in 1999.

(b)(3) In November 1998 the Authority commenced an inquiry

into the probity of the Leighton group of companies following

an application by Leighton Holdings Limited for approval

to become involved in the management and operation of the

Star City casino.

The Casino Control Act requires the Authority to inquire

into any major change in the state of affairs of the casino,

in particular where person or organisation would become

a close associate of Star City.

The total costs included travel and investigation expenses,

legal and consultancy costs incurred in the financial year ended

30 June 2000. The relevant staff salaries and on-costs were

included in ÒEmployee related expensesÓ [see Note 2(a)].

The total costs of the investigation (in both 1998/1999 and

1999/2000 and including the relevant staff salaries and

on costs) were $409,713 and are fully recoverable from

Leighton ($408,469 had been received from Leighton up

to 30 June 2000).

The investigation was completed in September 1999.

(b)(4) The costs in 1998/1999 related to a dispute between

the Authority and Star City Properties Pty. Ltd. regarding

remediation work of the Permanent Casino site.

On 8 February 1999 Star City Properties Pty Ltd advised the

Authority that it did not intend to take the matter further and

this matter is therefore considered at an end. No expense

was incurred in the financial year ended 30 June 2000.

For more details, refer to the AuthorityÕs annual report for

the financial year ended 30 June 1999.

4 | F INANCIAL REVIEW

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(b)(5) According to section 31 of the Casino Control Act 1992, the

Authority must not later than 3 years after the grant of a casino

licence, and thereafter at intervals not exceeding 3 years,

investigate and form an opinion as to whether or not (a) the

casino operator is a suitable person to continue to give effect to

the casino licence and the Act; and (b) it is in the public interest

that the casino licence should continue in force.

The first section 31 investigation was completed in December

1997. The second section 31 investigation has commenced

in late 1999. The total costs included travel and investigation

expenses, legal and consultancy costs incurred in the financial

year ended 30 June 2000. The relevant staff salaries and

on-costs were included in ÒEmployee related expensesÓ

[see Note 2(a)].

The second section 31 investigation has to be completed

by December 2000.

(c) Depreciation

2000 1999

$Õ000 $Õ000

Computer equipment 44 69

Computer software 20 48

Office equipment 16 17

Office furniture and fittings 75 75

155 209

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3. REVENUES

(a) Sale of goods and services

2000 1999

$Õ000 $Õ000

Recovery of project management costs and other

costs from Star City Pty. Ltd. pursuant to section 68

of the Casino Control Act 1992 and various legal

agreements between the Casino Control Authority

and Star City Pty. Ltd. 194 340

Recovery of travelling expenses from Star City Pty.

Ltd in connection with an AuthorityÕs staff member

providing evidence in a Singapore court hearing. 6 Ð

Recovery of expenses from TABCORP Holdings

Limited in connection with the TABCORP

investigation [sub-note (a)(1)] 272 143

Recovery of legal costs from Leighton Holdings

Limited according to section 35A of the Casino

Control Act 1992 Ð 8

Recovery of expenses from Leighton in connection

with the Leighton investigation [sub-note (a)(2)] 306 104

Miscellaneous receipts 2 4

780 599

(a)(1) This revenue represented the total costs recovered from

TABCORP in the financial year ended 30 June 2000 in

connection with the TABCORP investigation [also see Note

2(b)(2)]. This revenue included $182,000 deposit received

from TABCORP in the financial year ended 30 June 1999

but not utilised and was carried forward to 1999/2000.

(a)(2) This revenue represented the total costs recovered from

Leighton Holdings Limited and Leighton Properties Pty Limited

in the financial year ended 30 June 2000 in connection with the

Leighton investigation [also see Note 2(b)(3)]. This revenue

included $96,000 deposit received from Leighton in the

financial year ended 30 June 1999 but not utilised and

was carried forward to 1999/2000.

4 | F INANCIAL REVIEW

64

(b) Investment Income

2000 1999

$Õ000 $Õ000

Interest 64 58

64 58

4. APPROPRIATIONS

Recurrent appropriations

2000 1999

$Õ000 $Õ000

Total recurrent drawdowns from Treasury

(per Summary of Compliance) 2,232 2,306

Less: Liability to Consolidated Fund

(per Summary of Compliance) Ð Ð

Total 2,232 2,306

Comprising:

Recurrent appropriations (per Operating Statement) 2,232 2,306

Transfer payments Ð Ð

Total 2,232 2,306

Capital appropriations

2000 1999

$Õ000 $Õ000

Total capital drawdowns from Treasury

(per Summary of Compliance) 56 48

Less: Liability to Consolidated Fund

(per Summary of Compliance) Ð Ð

Total 56 48

Comprising:

Capital appropriations (per Operating Statement) 56 48

Transfer payments Ð Ð

Total 56 48

4 | F INANCIAL REVIEW

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5. ACCEPTANCE BY THE CROWN ENTITY OF EMPLOYEE ENTITLEMENTS

AND OTHER LIABILITIES

The following liabilities and/or expenses have been assumed

by the Crown Entity:

2000 1999

$Õ000 $Õ000

Superannuation 84 82

Long service leave (23) 56

Payroll tax on employer superannuation contribution 6 6

67 144

Due to the resignation of a number of staff during the financial year

ended 30 June 2000, the long service leave liability became over-

provided and has been adjusted.

6. CURRENT ASSETS Ð CASH

2000 1999

$Õ000 $Õ000

Cash at bank 1,529 1,652

Cash on hand 1 1

1,530 1,653

7. CURRENT ASSETS Ð RECEIVABLES

2000 1999

$Õ000 $Õ000

Sales of goods and services 19 99

Other debtors 31 Ð

Interest Receivable 31 31

81 130

No provision for doubtful debts were considered necessary and no bad

debts were written off during the financial year ended 30 June 2000.

4 | F INANCIAL REVIEW

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8. CURRENT ASSETS Ð OTHER

2000 1999

$Õ000 $Õ000

Prepaid equipment maintenance 2 2

Other 12 12

14 14

9. NON-CURRENT ASSETS Ð PLANT AND EQUIPMENT

Computer Computer Office Office Total

Equipment Software Equipment Furniture

& Fittings

$Õ000 $Õ000 $Õ000 $Õ000 $Õ000

At Cost

Balance 1 July 1999 387 253 243 748 1,631

Additions 49 4 3 Ð 56

Written out (23) Ð Ð Ð (23)

Balance 30 June 2000 413 257 246 748 1,664

Accumulated Depreciation

Balance 1 July 1999 317 215 203 460 1,195

Depreciation for the year 44 20 16 75 155

Depreciation written back (23) Ð Ð Ð (23)

Balance 30 June 2000 338 235 219 535 1,327

Written down value

at 30 June 1999 70 38 40 288 436

Written down value

at 30 June 2000 75 22 27 213 337

4 | F INANCIAL REVIEW

67

The Authority considers that the written down value of the AuthorityÕs

non-current assets reflects the current market value as at 30 June 2000.

Fully depreciated assets still in use as at 30 June 2000:

At cost

($Õ000)

* computer equipment 235

* computer software 223

* office equipment 156

Total 614

In March 2000, the Authority transferred fully depreciated computer

equipment (original cost of $23,000) at no cost to State Emergency Service

(Canterbury City).

10. CURRENT LIABILITIES Ð ACCOUNTS PAYABLE

2000 1999

$Õ000 $Õ000

Creditors 72 87

Audit remuneration 24 24

96 111

11. CURRENT LIABILITIES Ð EMPLOYEE ENTITLEMENTS

2000 1999

$Õ000 $Õ000

Recreation leave 100 164

Accrued salaries and wages 24 22

Employee leave loading 4 9

128 195

4 | F INANCIAL REVIEW

68

12. CURRENT LIABILITIES Ð OTHER

2000 1999

$Õ000 $Õ000

Deposits held for Casino Special Employee

Licensing application 40 40

Initial advance received from TABCORP for

the TABCORP investigation not fully utilised

by 30 June 1999 [sub-note (a)] Ð 182

Initial advance received from Leighton for

the Leighton investigation not fully utilised

by 30 June 1999 [sub-note (b)] Ð 96

40 318

(a) An initial advance of $325,000 was received from TABCORP

Holdings Limited in May 1999. The total costs incurred in the

financial year ended 30 June 1999 were $143,000 leaving

a balance of $182,000. This balance was carried forward to

1999/2000 and accounted as revenue for the financial year

[see Note 3(a)(1)].

(b) An initial advance of $200,000 was received from Leighton

Holdings Limited in February1999. The total costs incurred in

the financial year ended 30 June 1999 were $104,000 leaving

a balance of $96,000. This amount was carried forward to

1999/2000 and accounted as revenue for the financial year

[see Note 3(a)(2)].

13. CHANGES IN EQUITY

2000 1999

$Õ000 $Õ000

Opening balance 1,609 1,713

Surplus/(Deficit) for the year 89 (104)

1,698 1,609

4 | F INANCIAL REVIEW

69

14. RECONCILIATION OF CASH OUTFLOWS FROM OPERATING ACTIVITIES

TO NET COST OF SERVICES

2000 1999

$Õ000 $Õ000

Net cash used on operating activities (67) 459

Depreciation (155) (209)

Acceptance by the Crown Entity of employee

entitlements and other liabilities (67) (144)

Decrease / (increase) in provisions 67 (3)

Decrease / (increase) in creditors 293 (159)

Increase / (decrease) in prepayments and other assets Ð (35)

Increase / (decrease) in receivables (49) (157)

Adjustments on Government contributions not included

in net costs of services

Recurrent appropriation (2,232) (2,306)

Capital appropriation (56) (48)

Net cost of services (2,266) (2,602)

15. CASH AND CASH EQUIVALENTS

For the purpose of the Statement of Cash Flows, cash includes cash on hand,

cash at bank and bank overdraft. Cash at the end of the financial year

as shown in the Statement of Cash Flows is reconciled to the related items

in the Statement of Financial Position as follows:

2000 1999

$Õ000 $Õ000

Cash on hand 1 1

Cash at bank 1529 1652

Closing Cash and Cash Equivalents

(per Statement of Cash Flows) 1,530 1,653

4 | F INANCIAL REVIEW

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16. COMMITMENTS FOR EXPENDITURE

(a) Capital Commitments

2000 1999

$Õ000 $Õ000

Aggregate capital expenditure contracted for

at 30 June 2000 and not provided for:

Not later than one year 7 Ð

Later than one year but not later than 5 years Ð Ð

Later than 5 years Ð Ð

Total (including GST) 7 Ð

The total ÒCapital CommitmentsÓ above includes input tax credit

of $1,000 that are expected to be recoverable from the ATO.

(b) Other Expenditure Commitments

2000 1999

$Õ000 $Õ000

Aggregate other expenditure contracted for

at 30 June 2000 and not provided for:

Not later than one year 5 1

Later than one year but not later than 5 years Ð Ð

Later than 5 years Ð Ð

Total (including GST) 5 1

The total ÒOther Expenditure commitmentsÓ above includes input tax

credits of $457 that are expected to be recoverable from the ATO.

(c) Operating Lease Commitments

2000 1999

$Õ000 $Õ000

Future non-cancellable operating lease rentals

not provided for and payable:

Not later than one year 396 240

Later than one year but not later than 5 years 774 Ð

Later than 5 years Ð Ð

Total (including GST) 1,170 240

4 | F INANCIAL REVIEW

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The total ÒOperating Lease CommitmentsÓ above includes input tax

credits of $106,000 that are expected to be recoverable from ATO.

Lease commitments are based on current rental rates for premises

leased by the Authority.

The Authority leases level 17, 309 Kent Street, Sydney for office

accommodation.

The current lease will expire on 28 February, 2003. The annual rent

from 1 March 2000 to 28 February 2002 is $360,000 (not including

GST). The annual rent from 1 March 2002 will be the lesser of the

agreed market rent or $464,000 (not including GST).

17. AUDIT REMUNERATION

For the financial year ending 30 June 2000, the audit remuneration payable

to the Audit Office of NSW amounted to $24,200.

The auditors were also paid $2,600 being fees in relation to the Report on

Factual Findings regarding the reasonableness of the AuthorityÕs GST project

planning, implementation, evaluation and testing actions (ie Phases 1 to 4 of

NSW Treasury Compliance Plan).

18. CONTINGENT LIABILITIES

2000 1999

$Õ000 $Õ000

Details as below 110 40

The Authority may have a contingent liability in respect of a complaint to

the Anti-Discrimination Board made by an applicant for a casino special

employee licence.

The Authority may also have a contingent liability on legal fees in respect of

a freedom of information (FOI) application.

The Authority is currently not aware of any identified claim and action on the

Authority associated with year 2000 compliance issue, nor aware of any

identified claim that the Authority may have upon another entity.

4 | F INANCIAL REVIEW

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19. ADMINISTERED REVENUES

The Authority collected/remitted the undermentioned crown revenues to NSW

Treasury in the financial year ended 30 June 2000. These revenues were not

recorded in the financial statements of the Authority.

2000 1999

$Õ000 $Õ000

Casino duty 108,872 108,276

International duty 6,000 3,000

Community benefit levy 9,689 9,565

Casino special employee licensing fees 367 125

Controlled contracts fees 44 82

Dine-or-drink authority Ð 15

Penalties 25 3

124,997 121,066

(i) Casino Duty

Pursuant to section 114 of the Casino Control Act 1992, a casino duty

is to be paid to the Authority in respect of the casino licence. Duty is

calculated and paid on a weekly basis.

The Authority verified the weekly casino duty paid by Star City Pty. Ltd.

The duty is, at TreasuryÕs direction, remitted directly to Treasury each

week. In the financial year ending 30 June 2000, casino duty of

$108.9 million was paid to the Treasury.

(ii) International Duty

International Duty Installment Amounts

Subject to clause 3.4 of the Casino Duty and Community Benefit Levy

Supplemental and Amending Deed, the Licensee (Star City Pty. Ltd.)

must pay to the Authority, at the discretion of the Treasurer, $6,000,000

in each Calendar Year.

The Licensee must pay this amount via installments on the

following dates:

(a) $3,000,000 on 1 January; and

(b) $3,000,000 on 1 July.

The amount of $6,000,000 was received in 1999/2000 via installment

payments of $3,000,000 in July 1999 and January 2000.

The installments are not refundable in whole or in part.

4 | F INANCIAL REVIEW

73

International Duty

International duty means casino duty calculated at the International Duty

Rate on International Gross Revenue in accordance with clause 4.4 (a)

of the Casino Duty and Community Benefit Levy Supplemental and

Amending Deed.

International Duty Rate is 10%.

Duty above the installment amounts becomes payable when

International Gross Revenue exceeds $60,000,000 in the Calendar Year.

As International Gross Revenue did not exceed this threshold,

no additional duty was payable.

(iii) Community Benefit Levy and Fund

Section 115 of the Casino Control Act 1992 requires a casino community

benefit levy to be paid to the Authority in respect of each casino licence

and for the Authority to pay the levy into a Casino Community Benefit

Fund established in a Special Deposits Account in the Treasury.

The Authority verified the weekly community benefit levy paid by

Star City Pty. Ltd. which was remitted by the casino operator direct

to NSW Treasury.

In the financial year ending 30 June 2000, the community benefit levy

of $9.7 million was paid to the Treasury.

The money derived from payment of the casino community benefit levy

is subject to the operation of a trust deed appointing trustees and

containing provisions approved by the Minister for Gaming and Racing

relating to the expenditure of that money for the benefit of the community.

Responsibility for providing administrative support and assistance to the

trustees and the Minister in relation to the administration of the Fund

and the operation of the trustees lies with the Department of Gaming

and Racing.

(iv) Casino Special Employee Licensing Fee

Section 44 of the Casino Control Act 1992, provides that a person must

not exercise in or in relation to a casino any of the functions of a special

employee except in accordance with the authority conferred on the

person by a licence.

Staff of Star City Pty. Ltd. who are defined as ÒSpecial EmployeesÓ

under Section 43 of the Casino Control Act 1992, must be licensed

4 | F INANCIAL REVIEW

74

by the Authority. The Authority has determined that a licence application

fee of $500 applies in respect of each special employee holding a key

position and $250 in respect of each other person holding a special

employee position.

Under Section 55 of the Casino Control Act 1992, these licences expire

3 years after being granted. The licensee may, under Section 56 of the

Act, apply to the Authority for the licence to be renewed. The fee for

a renewal of licence as determined by the Authority is $220.

In the financial year ending 30 June 2000, the Authority collected

and remitted to the Treasury $0.4 million in respect of Casino Special

Employee Licence application fees (including fees for renewal

of licences).

(v) Controlled Contracts Fees

Under Section 36 of the Casino Control Act 1992, a Òcontrolled contractÓ

is defined as a contract that relates wholly or partly to the supply of

goods or services to a casino or to any other matter that is prescribed

as a controlled matter for the purposes of this definition, but does

not include:

(a) a contract that relates solely to the construction of a casino or

to the alteration of premises used or to be used as a casino; or

(b) a contract of a class that is prescribed as exempt from this

definition.

Section 37 of the Casino Control Act 1992 provides that the casino

operator must not enter into or become a party to a controlled contract,

or the variation of a controlled contract, relating to the casino until the

operator has given the Authority written notice of the details of the

proposed contract or variation of contract and the investigation time that

the Authority is allowed by this section has elapsed. The contract notice

must be accompanied by the prescribed fee of $2,000.

In the financial year ending 30 June 2000, the Authority collected and

remitted to the Treasury $0.04 million in respect of controlled contracts.

(vi) Dine-or-drink Authority

Under the Casino Control Amendment (Applicable of Dine-or-drink

Provisions) Regulation 1998, the Authority may grant an application for

a licence relating to a restaurant to be endorsed with an authority

(ie dine-or-drink authority) relating to the sale, supply and consumption

of liquor at the restaurant.

4 | F INANCIAL REVIEW

75

The Authority did not grant a dine-or-drink authority in the financial year

ended 30 June 2000.

(vii) Penalties

The Authority imposed a pecuniary penalty of $25,000 against the

casino operator (Star City Pty Ltd) for breaching a condition of its casino

licence. This matter resulted from a failure of the casino operator, over

a period of time, to ensure that provisions in its approved system of

internal controls and administrative and accounting procedures relating

to complimentary goods and services were implemented.

The penalty was received and remitted to the Treasury.

20. Financial Instruments

The financial instruments of the Authority comprises of the followings:

Cash

Cash comprises cash on hand and bank balances within the Treasury

Banking System. Interest is earned on daily bank balances at the monthly

average NSW Treasury Corporation 11 am unofficial cash rate adjusted

for a management fee to Treasury.

Receivables

Receivables are amounts to be recoverable from users at balance date.

Debts which are known to be uncollectible are written off. A provision for

doubtful debts is raised when some doubt as to collection exists. The credit

risk is the carrying amount (net of any provision for doubtful debts). No interest

is earned on receivables. The carrying amount approximates net fair value.

Users are requested to pay within 14 days of the invoice date.

Creditors and Accruals

Trade creditors and accruals are amounts due to be paid in the future for

goods and services received, whether or not invoiced. Amounts owing to

suppliers (which are unsecured) are settled in accordance with the policy set

out in TreasurerÕs Direction 219.01. If trade terms are not specified, payment

is made no later than the end of the month following the month in which

an invoice or a statement is received. TreasurerÕs Direction 219.01 allows

the Minister to award interest for late payment. There was no interest applied

to late payment during the financial year ending 30 June 2000.

4 | F INANCIAL REVIEW

76

21. BUDGET REVIEW

Net Cost of Services

Net cost of services for the financial year ended 30 June 2000 was

$2,266,000 and was $287,000 less than budget.

Total expenses were $408,000 below budget mainly due to

■ Savings of $250,000 in employee related expenses due to vacancies

not yet filled.

■ The provision of $400,000 for controlled contracts administration was

not required as proposed changes to the administration of controlled

contracts did not eventuate. This was partly offset by :

(a) Leighton investigation expenses exceeded budget by $142,000

(Note total costs fully recoverable from Leighton.

See comments ion retained revenue below)

(b) TABCORP investigation expenses exceeded budget by

$70,000 (Note total costs fully recoverable from TABCORP.

See comments on retained revenue below)

(c) Section 31 investigation expenses exceeded budget

by $14,000

(d) Other operating expenses exceeded budget by $77,000.

■ Actual provision for depreciation was $55,000 less than budget.

Total retained revenue was $844,000 and was $121,000 less than budget.

This was mainly due to:

■ The budgeted revenue of $400,000 from controlled contracts fees

did not occur as proposed changes to the administration of controlled

contracts did not eventuate. This was partly offset by:

(a) Recovery of expenses from Leighton in connection with the

Leighton investigation exceeded budget by $161,000

(b) Recovery of expenses from TABCORP Holdings Ltd

in connection with the TABCORP investigation exceeded

budget by $72,000.

(c) Interest receivable was $44,000 higher than budget due

to higher bank deposit balance than budget.

The recurrent appropriation (Government contributions) for the financial year

ending 30 June 2000 exceeded budget by $12,000 due to supplementary

77

funding of $12,000 approved and provided by the Treasury funds to meet the

increased staff costs in accordance with staff Awards.

Acceptance by the Crown Entity of employee entitlements and other liabilities

were $61,000 less than budget due to adjustment on over-provision of long

service leave.

Surplus for the year was $89,000 and was better than the budgeted deficit

of $145,000 by $234,000 due to the reasons above.

Assets and Liabilities

Total assets were $1,962,000 and were more than budget by $216,000 mainly

due to higher cash balance than budget ($248,000) as a result of savings

in employee related expenses

Total liabilities were less than budget by $86,000 mainly due to reduction in

employee entitlements ($72,000). Due to the resignation of a number of staff

in this financial year, recreation leave entitlement became over-provided and

were significantly reduced.

Cashflows

Closing cash and cash equivalents exceeded budget by $248,000

as explained above.

22. AFTER BALANCE DATE EVENTS

There were no event/s occurring after reporting date that will significantly

affect the information disclosed in the financial statements and notes to

the financial statements.

END OF AUDITED FINANCIAL STATEMENTS

4 | F INANCIAL REVIEW

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5 | APPENDICES

APPENDIX I Ð SENIOR EXECUTIVE SERVICE (SES) PROFILE

Bands Total CES Number of CES/SES Total CES Number of CES/SES

1999/2000 Positions Filled by 1999/2000 Positions Filled by

Women 1999/2000 Women 1999/2000

8

7

6

5

4 Ð Ð Ð Ð

3 1 Ð 1 Ð

2 Ð Ð Ð Ð

1 Ð Ð Ð Ð

Total 1 1 Nil 1 Nil

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APPENDIX II Ð AUTHORITY MEMBERSHIP AND MEETINGS

Details of Directorships held by members of the Authority are listed below.

Ms Kaye Loder AM

*Member then Chairperson from 23 September 1998 until resignation

on 26 April 2000

Qualifications: BA, LLB

Date of Appointment: 23 September 1996

Term: 4 years

Directorships: Nil

*Legal practitioner of at least 7 years standing

Mr Lindsay G Le Compte

Chief Executive until 23 September 1999

Qualifications: LLB, MBA, AIMM

Date of Appointment: 23 September 1992

Term: 4 years

Reappointment: 23 September 1996

Second term: 3 years

Directorships: Nil

Ms Jenny Calkin

Member

Qualifications: BEC

Date of Appointment: 23 September 1996

Term: 4 years

Directorships: Director, BT Hotels Limited

Director, Somersby Park Pty Ltd

Director, Calkin & Simpson Tourism Group Pty Ltd

Managing Director, Calkin & Associates

Mr Bruce Barbour

Member until resignation on 19 May 2000

Qualifications: LLB

Date of Appointment: 23 September 1998

Term: 3 years

Directorships: Nil

80

Mr Neville Allen

*Deputy Member then Chairperson from 3 May 2000 until 22 September 2000

Qualifications: LLB

Date of Appointment: 27 October 1999

Term: Until 22 September 2000

Directorships: Director, Villaport Pty Limited

Director, Allen Legal Services Pty Limited

Director, Gavan Investments Pty Limited

Director, TMG Nominees Pty Limited

Director, Cavafair Pty Limited

*Legal practitioner of at least 7 years standing

Mr Ronald Daley

Deputy Chairperson from 16 December 1998 until resignation on 28 April 2000

Qualifications: FCPA

Date of Appointment: 23 September 1996 for 2 years as Deputy Member

23 September 1997 for 3 years as Member

16 December to 22 September 2000 as Deputy Chairperson

Directorships: Member of NSW Coal Compensation Board

Mr Brian Farrell

Chief Executive

Date of Appointment: 17 April 2000

Term: 5 Years

Directorships: Nil

Meetings of the Authority

During the reporting period the Authority held 20 formal meetings. The Authority

holds regular monthly meetings (together with other meetings when required) to deal

with issues relating to the casino. Attendance at the meetings was as follows:

Name Meetings Maximum Notes

attended no of

meetings

available

Ms Kaye Loder 17 17 Ms Loder is also the member of the

Chairperson, Authority who is a legal practitioner of

at least 7 yearsÕ standing, in accordance

with the requirements of the Act.

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Ms Loder resigned as Chairperson and

member of the Authority on 26 April 2000.

The Authority held 17 meetings for the

period 1 July 1999 to 26 April 2000.

Mr Neville Allen, 10 17 As deputy member, Mr Allen attended and

Deputy Member then 3 3 deputised for absent Authority members

Chairperson on 2 occasions. Mr Allen had a standing

invitation to attend meetings even where

he was not deputising for an absent

member. Mr Allen was appointed

Chairperson from 3 May 2000 to

22 September 2000.

Mr Lindsay Le Compte, 10 10 Mr Le Compte did not seek reappointment

Chief Executive when his term as Chief Executive expired

on 22 September 1999. The Authority

held 10 meetings for the period 1 July

1999 to 22 September 1999.

Mr Cheok Lee, 7 7 Mr Lee was Acting Chief Executive from

Acting Chief Executive 23 September 1999 until 16 April 2000.

The Authority held 7 meetings for the

period 23 September 1999 to 16 April 2000.

Mr Brian Farrell, 3 3 Mr Farrell was appointed Chief Executive

Chief Executive from 17 April 2000 for 5 years.

The Authority held 3 meetings for the

period 17 April 2000 to 30 June 2000.

Mr Ronald Daley, 15 17 Mr Daley resigned as Deputy and

Deputy Chairperson member of the Authority on 28 April 2000.

The Authority held 17 meetings for the

period 1 July 1999 to 28 April 2000.

Ms Jenny Calkin, 18 20

Member

Mr Bruce Barbour, 16 18 Mr Barbour resigned as a member

Member of the Authority on 19 May 2000.

The Authority held 18 meetings for the

period 1 July 1999 to 19 May 2000.

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APPENDIX III Ð COMMITTEE FUNCTIONS

1. AUDIT COMMITTEE

Background Information

The Authority is ultimately responsible for ensuring that the control framework

remains effective and supports the objectives of the Authority under the Casino

Control Act 1992.

In fulfiling its obligations in this regard, the Authority established an Audit Committee

on 21 May 1998 as a forum for communication between the Authority, executive

management and the internal and external auditors of the Authority.

The Audit Committee has no executive powers, supervisory functions or decision-

making authority in relation to the operations of the Authority and functions in an

oversight and review capacity.

The Committee comprises 3 members of the Authority appointed for an initial period

not exceeding 2 years after which they are eligible for re-appointment.

Audit Committee Functions

The role of the Audit Committee, as set out in its Charter, is directed towards:

Ð enhancement of the control framework;

Ð improving the objectivity and reliability of externally published financial

information; and

Ð assisting the Authority to comply with all legislative and other obligations.

2. GAMING COMMITTEE

Background Information

The statutory objects and functions of the Authority set out under sections 140

and 141 of the Casino Control Act 1992 (the Act) essentially require the Authority

to maintain and administer systems for the licensing, supervision and control of

the casino so as to ensure protection of the public interest and that gaming in the

casino is conducted honestly and fairly.

Various provisions of the Act prescribe that the Authority must approve virtually

all operational arrangements connected with the conduct of gaming in the casino

including: games rules; all gaming equipment and facilities; the casino floor layout

and games mix; gaming staff training programs; dealing and surveillance

procedures; cashier and pit operations etc.

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In its consideration of many gaming related proposals, it is often necessary for the

Authority to weigh the best commercial interests of Star City against public interest

concerns. As a result, the decision making process routinely involves lengthy

assessment and protracted negotiation in order to develop acceptable outcomes

for all stakeholders.

The Gaming Committee was established in September 1998 to act as a forum

for communication between the Authority, executive management and other key

stakeholders and to assist the Authority in the fulfilment of its statutory functions

of approval of gaming related matters.

Accordingly, the Gaming Committee operates in an oversight and review capacity

and holds no executive powers, supervisory functions or decision-making authority.

The Committee is authorised to request any information it requires from employees

of the Authority and members are responsible for ensuring that they maintain the

requisite knowledge and skills necessary for the Committee to function effectively

and efficiently.

Gaming Committee Functions

The Gaming Committee Charter prescribes that the CommitteeÕs functions are to:

Ð review and assess practices and procedures connected with fulfilment of the

AuthorityÕs statutory obligations in relation to approval of gaming related matters;

Ð monitor the AuthorityÕs decision making performance on gaming related matters;

and

Ð monitor reports from the Director of Casino Surveillance relating to the casino

operatorÕs compliance with obligations incurred under the Act and the

casino licence.

3. RESEARCH COMMITTEE

Background Information

Section 141(2)(i) of the Casino Control Act 1992 provides that one of the

AuthorityÕs specific functions is to conduct and fund the conduct of research into

matters concerning casinos. In order to effectively fulfil this obligation, the Authority

established a Research Committee in September 1998 to act as a forum for

communication between the Authority, executive management and external

stakeholders in relation to research issues.

The Research Committee has no executive powers, supervisory functions or

decision-making authority in relation to the operations of the Authority. It functions

in an oversight and review role.

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The members of the Research Committee are responsible for ensuring the

efficient and effective operation of the Committee and taking the appropriate steps

to ensure they have the requisite knowledge and training to undertake their role.

The Committee must also report any significant matter to the Authority that may

impact on the operations of the Authority.

Functions of Research Committee

Under its Charter, the specific functions of the Committee include:

Ð review the content of the Research Program;

Ð monitor developments and changes which will affect the Research Program;

Ð examine changes to the Research program having regard to current or emerging

information or trends which may affect the Research Program and its funding;

Ð review and evaluate reports and other outcomes of the Research Program; and

Ð monitor managementÕs implementation of Authority decisions relating to the

Research Program.

4. CORPORATE GOVERNANCE COMMITTEE

Background Information

The Authority is ultimately responsible for ensuring that the control framework

remains effective and supports the objectives of the Authority under the Casino

Control Act 1992.

In fulfiling its obligations in this regard, the Authority has established a Corporate

Governance Committee as a forum for communication between the Authority,

executive management and other stakeholders.

The Corporate Governance Committee has no executive powers, supervisory

functions or decision-making authority in relation to the operations of the Authority.

It functions in an oversight and review role.

The Corporate Governance Committee has the authority to request any information

it requires from any employee of the Authority.

Functions

The functions of the Corporate Governance Committee are to:

Ð review and assess the AuthorityÕs Corporate Plan and monitor compliance with

the Plan;

Ð review and assess the AuthorityÕs annual reporting process;

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Ð examine compliance with the AuthorityÕs Code of Conduct and obligations

regarding the integrity of staff and consultants of the Authority;

Ð advise the Authority as to performance agreements between the Authority and the

Minister, the Authority and its Chief Executive and the Minister and the AuthorityÕs

Chief Executive and report as to compliance in relation to those arrangements;

Ð ensure Authority liaison with key stakeholders;

Ð monitor compliance by the Authority with its statutory and administrative

obligations; and

Ð review and assess the AuthorityÕs meeting procedures.

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APPENDIX IV

CONSULTANCIES

The Authority spent a total of $812,000 for expert advice and specialised services

from various consultants. Consultants each at an individual cost of $30,000 or more

are listed below:

Consultant Costs Services Provided

($Õ000)

Clayton Utz 383 Legal services and advice on the

Leighton investigation, TABCORP

investigation, and section 31

investigation.

Davison Consultants Pty Ltd 101 Site inspections, preparation

of reports to the Authority and

review all outstanding requirements

concerning casino development.

Advice on casino floor layouts,

building alterations and

development/construction

applications from Star City.

Providing information and

reporting to the Authority

on surveillance issues.

Bellamy, Miller & Monypenny 76 Evaluation and assurance testing

of gaming systems, gaming

equipment and other systems

of Star City casino.

Internal Audit Bureau 34 Internal audit service and advice

on GST implementation.

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AP

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88

APPENDIX VI Ð FOI REQUESTS 1999/2000

FOI STATISTICS

NSW Freedom of Information ACT, 1989

SECTION A Numbers of new FOI requests Ð Information relating to numbers of

new FOI requests received, those processed and those incomplete

from the previous period.

FOI requests Personal Other Total

A1 New (including transferred in) 1 1

A2 Brought forward1

A3 Total to be processed 1 1

A4 Completed 1 1

A5 Transferred out

A6 Withdrawn

A7 Total processed 1 1

A8 Unfinished

SECTION B What happened to completed requests? Completed requests are

those on line A4

Results of FOI request Personal Other

B1 Granted in Full

B2 Granted in Part 1

B3 Refused

B4 Deferred

B5 Completed* 1

*Note: The figures on line B5 should be the same as the corresponding ones on A4

SECTION C Ministerial Certificates Ð number issued during the period

C1 Ministerial Certificates issued 0

SECTION D Formal consultations Ð number of requests requiring consultations

(issued) and total number of FORMAL consultation(s) for the period.

Issued Total

D1 Number of requests requiring

formal consultation(s) 0

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SECTION E Amendment of personal records Ð number of requests for

amendment processed during the period.

Result of Amendment request Total

E1 Result of amendment Ð agreed 0

E2 Result of amendment Ð refused 0

E3 Total 0

SECTION F Notation of personal records Ð number of requests for notation

during the period.

F3 Number of requests for notation 0

SECTION G FOI requests granted in part or refused Ð Basis of disallowing access

Ð Number of times each reason cited in relation to completed requests

which were granted in part or refused.

Basis of disallowing or restricting access Personal Other

G1 Section 19

(applic. incomplete, wrongly directed)

G2 Section 22 (deposit not paid)

G3 Section 25 (1)(a1) {diversion of resources}

G4 Section 25 (1)(a) {exempt} 1

G5 Section 25 (1)(b),(c),(d) {otherwise available}

G6 Section 28 (1)(b) {documents not held}

G7 Section 24(2) Ð deemed refused, over 21 days

G8 Section 31(4) {released to medical practitioner}

G9 Totals 1

SECTION H Costs and fees of requests processed during the period (i.e. those

included in lines A4, A5 and A6). Please DO NOT include costs and

fees for unfinished requests (i.e. those requests included in line A8).

Assessed FOI Fees

Costs received

H1 All competed requests $ 30.00

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SECTION I Discounts allowed Ð numbers of FOI requests processed during the

period* where discounts were allowed.

Type of discount allowed Personal Other

I1 Public Interest 0 0

I2 Financial hardship Ð Pensioner / child 0 0

I3 Financial hardship Ð Non profit organisation 0 0

I4 Totals 0 0

I5 Significant correction of personal records 0 0

*Note: except for Items I5, Items I1, I2, I3 and I4 refer to requests processed

as recorded in A7. For I5, however show the actual numbers of requests

for correction of records processed during the period.

SECTION J Days to process Ð Number of completed requests (A4) by calendar

days (elapsed time taken to process.)

Elapsed Time Personal Other

J1 0 Ð 21 days 1

J2 22 Ð 35 days

J3 over 35 days

J4 Totals 1

SECTION K Processing time Ð Number of completed requests (A4) by hours

taken to process.

Processing Hours Personal Other

K1 0-10 hrs 1

K2 11-20 hrs

K3 21-40 hrs

K4 Over 40 hrs

K5 Totals 1

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SECTION L Reviews and appeals Ð number finalised during the period.

L1 Number of internal reviews finalised 0

L2 Number of Ombudsman reviews finalised 0

L3 Number of District Court appeals finalised 0

Details of Internal Review Results Ð in relation to internal reviews finalised

during the period.

Basis of Internal review Personal Other

Grounds on which internal

review required Upheld* Varied* Upheld* Varied*

L4 Access refused

L6 Exempt matter

L7 Unreasonable charges

L8 Charge unreasonably incurred

L9 Amendment refused

L10 Totals 0 0 0 0

*Note: relates to whether or not the original agency decision was upheld or varied

by the internal review.

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APPENDIX VII Ð CORPORATE CREDIT CARD CERTIFICATION

CORPORATE CREDIT CARD

Certification by CEO

I hereby certify that credit card use in the Casino Control Authority during

the reporting period has been in accordance with PremierÕs Memoranda

and TreasurerÕs Directions.

Brian Farrell

Chief Executive

Casino Control Authority

4 October 2000

93

APPENDIX VIII

INVESTIGATION PURSUANT TO SECTION 31 OF THE CASINO CONTROL ACT

TERMS OF REFERENCE Ð NOVEMBER 1999

1. The suitability of the casino operator, and each close associate of the casino

operator, as nominated by the Authority from time to time, to be concerned in or

associated with the management and operation of Star City casino having regard

to whether:

1.1 the casino operator and each close associate are of good repute, having

regard to character, honesty and integrity; and

1.2 the casino operator has or has arranged a satisfactory ownership, trust

or corporate structure; and

1.3 the casino operator and each close associate are of sound and stable

financial background; and

1.4 the casino operator has or is able to obtain financial resources that are

both suitable and adequate for ensuring the financial viability of the

casino; and

1.5 the casino operator has or is able to obtain the services of persons who

have sufficient experience in the management and operation of

a casino; and

1.6 the casino operator has sufficient business ability to maintain a successful

casino; and

1.7 the casino operator or any close associate has any business association

with any person, body or association nominated by the Authority from time

to time who, in the opinion of the Authority is not a good repute having

regard to character, honesty and integrity or has undesirable or

unsatisfactory financial sources; and

1.8 each director, partner, trustee, executive officer and secretary and any

other officer or person determined by the Authority to be associated or

connected with the ownership, administration or management of the

operations or business of the casino operator or a close associate of

the casino operator is a suitable person to act in that capacity.

2. The standard and nature of the casino which commenced operations on

26 November 1997 and the facilities provided in, or in conjunction with, the casino.

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3. The impact of the use of the casino premises on tourism, employment

and economic development generally in Sydney and New South Wales.

4. The expertise of the casino operator having regard to the obligations

of the holder of a casino licence under the Act, including the extent to which

the casino operator has complied with:

4.1 its obligations under the Act;

4.2 its obligations under the casino licence; and

4.3 legal agreements between the Authority and the casino operator.

5. The effect of the casino in relation to the public interest including, but not

limited to:

5.1 the impact or potential of findings by the Authority in relation to the

matters referred to in paragraphs 1 to 4 above; and

5.2 the impact or potential impact of casino operations on individuals who

attend, or who may attend the casino and their families; and

5.3 the impact or potential impact of the casino on the public interest having

regard to submissions made to the Authority by the public.

6. Such other matters as the Authority considers relevant.

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APPENDIX IX

INVESTIGATION PURSUANT TO SECTION 31 OF THE CASINO CONTROL ACT

EXPANDED TERMS OF REFERENCE Ð MAY 2000

1. The suitability of the casino operator, and each close associate of the casino

operator, as nominated by the Authority from time to time, to be concerned in or

associated with the management and operation of Star City casino having regard

to whether:

1.1 the casino operator and each close associate are of good repute, having

regard to character, honesty and integrity; and

1.2 the casino operator has or has arranged a satisfactory ownership, trust

or corporate structure; and

1.3 the casino operator and each close associate are of sound and stable

financial background; and

1.4 the casino operator has or is able to obtain financial resources that are

both suitable and adequate for ensuring the financial viability of the

casino; and

1.5 the casino operator has or is able to obtain the services of persons who

have sufficient experience in the management and operation of

a casino; and

1.6 the casino operator has sufficient business ability to maintain a successful

casino; and

1.7 the casino operator or any close associate has any business association

with any person, body or association nominated by the Authority from time

to time who, in the opinion of the Authority is not a good repute having

regard to character, honesty and integrity or has undesirable or

unsatisfactory financial sources; and

1.8 each director, partner, trustee, executive officer and secretary and any

other officer or person determined by the Authority to be associated or

connected with the ownership, administration or management of the

operations or business of the casino operator or a close associate of

the casino operator is a suitable person to act in that capacity.

2. The standard and nature of the casino which commenced operations on

26 November 1997 and the facilities provided in, or in conjunction with, the casino.

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3. The impact of the use of the casino premises on tourism, employment

and economic development generally in Sydney and New South Wales.

4. The expertise of the casino operator having regard to the obligations

of the holder of a casino licence under the Act, including the extent to which

the casino operator has complied with:

4.1 its obligations under the Act;

4.2 its obligations under the casino licence; and

4.3 legal agreements between the Authority and the casino operator.

5. The effect of the casino in relation to the public interest including, but not

limited to:

5.1 the impact or potential of findings by the Authority in relation to the

matters referred to in paragraphs 1 to 4 above; and

5.2 the impact or potential impact of casino operations on individuals who

attend, or who may attend the casino and their families; and

5.3 the impact or potential impact of the casino on the public interest having

regard to submissions made to the Authority by the public.

6. The maintenance and administration of systems by the casino operator to:

6.1 ensure that the management and operation of the casino remains free from

criminal influence or exploitation; and

6.2 ensure that gaming in the casino is conducted honestly.

7. Specific matters which have been the subject of recent media reports, including:

7.1 alleged money laundering activities by persons who frequent the casino;

7.2 the alleged attendance of criminals or persons of ill repute at the casino;

and

7.3 criminal activity generally, or other activity which may be considered

undesirable which may be associated with the casino.

8. Such other matters, as the Authority considers relevant.

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APPENDIX X Ð COMPLIANCE INDEX

This index is designed to identify compliance with statutory disclosure requirements

in accordance with Treasury Circular No. 9 of 18 May 1993, and other disclosure

requirements.

ANNUAL REPORTS (STATUTORY BODIES) ACT 1984

Reference Detail PageS 7(1)(a)(i) Financial Statements 49S 7(1)(a)(ii) Auditor-GeneralÕs opinion 48S 7(1)(a)(iia) Response to Auditor-GeneralÕs report N/AS 7(1)(a)(iii) Detailed budget 1999/2000 42S 7(1)(a)(iii) Outline budget 2000/2001 44S 7(1)(a)(iv) Report of Operations 11S 9 Nature of Report of Operations CompliesS 9(1)(a) Charter 7S 9(1)(b) Aims and Objectives 11S 9(1)(c) Access 3S 9(1)(d) Management and Structure 8S 9(1)(e) Summary Review of Operations 4S 9(1)(f) Legal change 29S 9A Letter of submission 1S 13(5) Extensions of time N/A

ANNUAL REPORTS (STATUTORY BODIES) REGULATION 1985

Reference Detail PageS 13(5) Extensions of time N/Ac 3(a)&(b) Material adjustments to budget 42c 3B Unaudited information distinguished Compliesc 3C Identification of audited financial information Compliesc 4(1)(a) Charter 7¬ manner of establishment and purpose

of the organisation 7¬ principal legislation administered 7c 4(1)(b) Aims and Objectives 11¬ goals of the organisation 11¬ range of services provided 7¬ clientele/community served 7c 4(1)(c) Access 3¬ address of principal office 3¬ telephone number of principal office 3¬ business and service hours 3c 4(1)(d) Management and Structure 9

member details 79organisational chart 8

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c 4 (1)(e) Summary review of operations 4narrative summary 11quantitative details 4

c 4(l)(d)c 4(l)(e)c 4(1)(f) Legal change 29c 4(1)(g) Economic/other factors affecting achievement

of operational objectives N/AManagement and Activities 9

c 4(1)(h)(i) nature and range of activities 11c 4(1)(h)(a) measures of performance 4c 4(1)(h)(ib) internal and external performance reviews 82c 4(1)(h)(ic) benefits from management and strategy reviews N/Ac 4(1)(h)(id) management improvement plans and achievements 11c 4(1)(h)(ii) major problems and issues N/Ac 4(1)(h)(iii) major works in progress N/Ac 4(1)(h)(iv) reasons for significant delays to major works or programs N/Ac 4(1)(i) Research and Development 83

completed research 83continuing research 83developmental activities 32reasons for non disclosure N/APersonnel 30

c 4(1)(j)(i) number of employees 31c 4(1)(j)(ii) exceptional wage movements N/Ac 4(1)(j)(iii) policies and practices 32c 4(1)(j)(iv) industrial relations 33c 4(1)(k)(ii) overseas visits 27c 4(1)(j1) Consultants 86c 4(1)(j1)(i) costs greater than $30,000 86c 4(1)(j1)(ii) costs less than $30,000 86c 4(1)(j1)(iii) no consultants engaged 86c 4(1)(j2) Equal Employment Opportunity 32c 4(1)(j2)(i) achievements and strategies 32c 4(1)(j2)(ii) statistical information 87c 4(1)(j3) Land Disposal N/Ac 4(1)(k) Promotion N/Ac 4(1)(k)(i) publications available 40c 4(1)(i) Consumer Response 3¬ complaints 3¬ response to complaints 3c 4(1)(m) Guarantee of Service 34¬ standards for provision of services 34¬ changes made to standards N/Ac 4(1)(m1/2) Time for payment of accounts 47

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c 4(1)(n) Subsidiaries, Partnerships, Joint Ventures and other Associations N/A

c 4A Investment Management Performance N/Ac 4B Liability Management Performance N/Ac 4C Chief and Senior Executive Officers 78c 4C(1)a number of positions 78c 4C(1)b female executive officers 78c 4C(1)c executive officers above level 5 78c 5(a) After balance date events having a significant effect on

financial operations 77c 5(b) other operations 46c 5(c) clientele/community 7c 5(2) Code of Conduct 35c 6 Form of Annual Reports N/Ac 7(1) Published size of Annual Report 3c 9(4) Disclosure of exemptions N/A

OTHER REQUIREMENTS

Source Detail PagePM 91/34 Funds granted to Non-Government

Community Organisations N/ATCG 1991/18 Equal Employment Opportunity 32TCG 1992/12 Time for payment of accounts 47PM 91/2 Subsidiary Companies Disclosures N/ATCG 1991/5 Investment Management Performance N/ATCG 1991/5 Liability Management Performance N/APM 92/4 Chief and Senior Executive Officers 78TD 900.01 Risk Management and Insurance Activities 32TM 92/9 Annual Report production and distribution 3S 41B Public Finance and Audit requirements for

financial statement format 49Ethnic Affairs Ethnic Affairs Report 33Commission

Key

PM Ð PremierÕs Memorandum

TC Ð Treasury Circular

TD Ð TreasurerÕs Direction

TM Ð TreasurerÕs Memorandum

S 41B Ð Section of the Public Finance and Audit Act 1983

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CA

SIN

O C

ON

TR

OL

AU

TH

OR

ITY

AN

NU

AL

RE

PO

RT

19

99

| 2

00

0

N E W S O U T H WALES CASINO CONTROL AUTHORITY