Public Lotteries Report 2005

Information about the publication of Ministerial Decisions

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demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
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A decision (MD-E-2006-0059) regarding Public Lotteries Report 2005

Subject:	Public Lotteries Report 2005
Decision Reference:	MD-E-2006-0059		Exempt clause(s):	n/a
Type of Report: (oral or written)	Written		Person Giving Report (if oral):	n/a
Telephone or e-mail Meeting?	n/a		Report File ref:
Written report – Title	Public Lotteries Report 2005
Written report – Author (name and job title)	Dr Jason Lane, Director of Regulatory Services
Decision(s): The Assistant Minister approves the attached Report for presentation to the States.
Reason(s) for decision: The Assistant Minister is required to submit an annual set of profit and loss accounts to the States.
Action required: Jason Lane to send copies of the Public Lotteries Report 2005 to the Assistant Greffier and the Publications Editor at the States Greffe.
Signature: Deputy Alan Maclean (Assistant Minister)		Date of Decision: 6 April 2006

Public Lotteries Report 2005

PUBLIC LOTTERIES: REPORT FOR 2005

INTRODUCTION

The Assistant Minister for Economic Development, in accordance with the provisions of Regulation 4(4) of the Gambling (Channel Islands Lottery) (Jersey) Regulations 1975, is pleased to submit to the States a report of the Public Lotteries promoted from 1st January 2005 up to and including the Draw of 20th December 2005, together with an income and expenditure account and balance sheet.

OVERSIGHT OF THE CHANNEL ISLANDS LOTTERY

Policy for the Lottery is decided by the Assistant Minister for Economic Development in Jersey and the Culture and Leisure Minister in Guernsey. During 2005, however, the Lottery was administered in Jersey by the former Economic Development Committee -

Deputy F.G. Voisin – President

Deputy L.J. Farnham – Vice-President

Senator L. Norman

Deputy P.J.D. Ryan

Deputy M.A. Taylor

PUBLIC LOTTERIES BOARD

The Public Lotteries Board is constituted in accordance with Regulation 3 of the Channel Islands Lottery (Jersey) Regulations 1975, as amended, for the purpose of advising the Minister on general matters connected with the Lotteries and for conducting the Draw held in Jersey. Its Members in 2005 were -

Mr. I.T. Barnes (Chairman)

Mr. P.S. Cruickshank

Mr. D.A. Wallis

Mr. G.J. Roscouet

Ms M. Horton

Mr. A.J. Arnold

Dr. J. Lane (Secretary)

The Board retains a vital function, providing continuity of experience to the new Assistant Minister as it did for the former Committee. The contribution of the Board is often overlooked, but without the individual contribution of its Members, the CI Lottery would not have been able to continue. Even with the goal of extension of the UK National Lottery now looking more likely, the position and value of the Board remains. Should the CI Lottery be discontinued and the National Lottery extended, it will be the Board, on behalf of the Assistant Minister, who will take responsibility for distribution of lottery funding to good causes within the Bailiwick.

THE POLICY OF THE FORMER COMMITTEE

While the Committee successfully brought a Report and Proposition to the States regarding the allocation of profits of the Channel Islands Lottery in 2004, it decided not to do so for 2005. This was no reflection upon the Association of Jersey Charities, the main beneficiary of lottery profits for the previous 5 years. Rather, it was felt that major decisions, such as the use of lottery profits, should be decided by the new Minister after the change to the machinery of Government. Accordingly the Assistant Minister for Economic Development will be bringing a Report and Proposition to the States in the near future to agree provision of the 2005 and 2006 profits.

The former Committee had a strong belief that the Islands should continue their own public lottery until there was a clear indication from both the States and Parliament that extension of the UK National Lottery was a realistic proposal.

To that end, the Committee’s strategy in 2005 was to -

 WWW.GOV.JE

With the assistance of Andrew Jones, Strategic Development Officer of the Economic Development Department, the Lottery results for the Christmas Draw were made available through the States of Jersey Website.

THE ASSOCIATION OF JERSEY CHARITIES

Founded in 1971, the Association of Jersey Charities now represents approximately 200 Jersey charities. The former Committee continued to support their efforts for local charitable causes and recognised the importance of Channel Islands Lottery profits as the mainstay of the Association’s funding. As part of the drive to make States’ funding more accountable, the Committee introduced a Service Level Agreement to cover the administration and distribution of the States Grant.

Grants by the Association are ordinarily only available to its members from the second year of membership and are considered at each of its Quarterly Meetings. Applicants must first make formal written application describing the use to which the grant would be applied and then, at the meeting, have to give a short presentation and answer questions from the membership. No grant is made in excess of £20,000 to any member during the same financial year in order that the greatest possible number of charitable causes may benefit from the funding.

Not all applications are successful, however, as they undergo strict scrutiny. The relationship whereby the Committee is able to delegate awards to the Association, who are then able to assist its membership, works well. The grants approved in 2005 by the Association of Jersey Charities are listed below and well illustrate the very real benefits accrued by Lottery profits for the benefit of local good causes.

List of applications approved in 2005 (from the 2004 Grant)

Trinity Youth Centre Incorporated – for refurbishment

and equipment £11,465

Jersey Council on Alcoholism – for property repairs

and upgrading £20,000

Jersey Child Care Trust – for special needs inclusion

project £9,000

JSPCA – to start a welfare clinic £20,000

Arts in Health Care Trust – to provide art programmes

in residential care setting £8,000

Relate Jersey – for the purchase of books £500

Jersey Arts in Health Care Trust – to support their

programmes £12,000

Jersey Women’s Refuge – for part funding of an

outreach project worker £20,000

Jersey Cheshire Home – for creation of sterile laundry

and an isolation room £20,000

Headway Jersey – to fund a project of assessment £20,000

Band of the Island of Jersey – for new uniforms £20,000

Jersey Association of Carers Inc – to increase

opening hours £15,000

G.O.S.H. – to furnish the ‘Jersey Floor’ of the

hospital ‘Hotel’ £20,000

Community Charitable Trust – for upgrade of

computer, phone and purchase of a safe £1,770

Riding for the Disabled Jersey Group – for a second-hand

horse transporter £7,050

Eating Disorders Action Group – to fund seminars and

speakers £3,000

Jersey Victim Support Scheme – towards operational

costs for 2006 £20,000

Art in the Frame Foundation – for the installation of a

stair-lift £4,580

ACET – contribution to operational costs for work

with ethnic minority groups £20,000

The Glass Rainbow Trust – to commission the framing

of cartoons created by Henry Bosdet £8,000

The National Autistic Society – contribution to the

operational costs of the new Befriending Scheme £20,000

Brig-Y-Don Children’s Home – contribution to

staffing costs in 2006 £20,000

Mencap – for a wheelchair vehicle £20,000

TOTAL £320,365

THE ADMINISTRATION CHARGE

The charge, equal to 1.5% of the tickets sold by the Culture and Leisure Department in Guernsey and paid to the Department, is a contribution made in respect of work undertaken for the administration and management of the Lottery. This payment rose to £22,656 in 2005 from £19,443 in 2004 reflecting the increased sales and administration during the year.

STATES TREASURY RECHARGES

Included in the total Draw Expenses for the period is the sum of £29,143 [£25,899 in 2004] which refers to charges made to the Department for the many services provided by Treasury and Resources, including the administration of the Lottery (Jersey) Fund, preparing accounts on behalf of both Islands, reconciling winning tickets, paying commissions, auditing accounts and being present at the Christmas Lottery Draw. This service is now administered through a Service Level Agreement between the Department and the Shared Services Division of Treasury and Resources.

The final accounts for the CI Lottery (unaudited) up to December 2005 are noted below.

Income and Expenditure Account for the year ended 31 December 2005


		2005		2004
		£	£	£	£
Income
	Sale of tickets in Jersey (Net of 13% Discount)	(1,728,690)		(1,388,087)
	Sale of tickets to Gsy (at 60% of cost and less admin)	(917,590)		(852,518)
	Time Expired Prize Income	(29,150)		(22,408)
	Bank Interest	(7,703)		(3,295)
	Admin charges received from Gsy	(22,656)		(19,443)
	Misc	(23)		(569)
			(2,705,812)		(2,286,320)
Expenditure
	Actual Prize money paid for Jsy Sales	866,784		1,047,897
	Actual Prize money paid for Gsy Sales	391,957		564,128
	Unclaimed prize money	857,069		208,180
	Agents' commission on winning tickets	11,842		9,697
	Manpower	-		36,692
	Supplies and Services	110,112		111,551
	Administrative Costs	29,143		25,899
	Premises	-		2,204
	Incidental Charges and Expenses	26,100		22,200
			2,293,007		2,028,447

Net surplus			(412,805)		(257,873)





Balance Sheet as at 31 December 2005

		2005		2004
		£	£	£	£

	Current Assets
	Debtors and Prepayments	1,031,942		483,382
	Cash	507,307		242,157
			1,539,249		725,539
	Current Liabilities
	Uncollected prizes	939,211		293,508
	Creditors	18,533		5,459
			957,744		298,967

			581,505		426,572
Accumulated Revenue and Reserve Balances

	Accumulated Fund		133,920		133,921

	Balance held on behalf of the Education, Sport and Culture Committee		34,780		34,780

	Balance held for distribution		412,805		257,871

			581,505		426,572

15 March 2006