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L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Public Lotteries Report 2011

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

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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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The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 24 February 2012:

Decision Reference: MD-E-2012-0025

Decision Summary Title :

Public Lotteries Report 2011

Date of Decision Summary:

24 February 2012

Decision Summary Author:

 

Strategy Manager

Decision Summary:

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title :

Public Lotteries Report 2011

Date of Written Report:

24 February 2012

Written Report Author:

Strategy Manager

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject:

Public Lotteries Report 2011.

Decision(s):

The Minister approved the Public Lotteries Report 2011 and agreed that it should be presented to the States at the earliest opportunity.

Reason(s) for Decision:

The Minister under the Gambling (Channel Islands Lottery) (Jersey) Regulations 1975, Regulation 4(6) shall, not later than 15th March 2012, submit to the States a report and an income and expenditure account of the Channel Islands Lottery conducted during the previous year.

Resource Implications:

There are no financial or manpower implications for the States.

Action required:

The Greffier is requested to present the report as soon as practicable.

Signature:

 

 

Senator AJH Maclean

Position:

 

Minister for Economic Development

 

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

 

Public Lotteries Report 2011

PUBLIC LOTTERIES REPORT 2011

 

Introduction

 

The Minister for Economic Development, in accordance with the provisions of

Regulation 4(6) 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 2011 up to the 31st December 2011, including the Draw of 15th December 2011, together with an income and expenditure account and balance sheet.

 

Overview of the Channel Islands Lottery

 

Policy for the Lottery in 2011 was decided by the Assistant Minister for Economic Development in Jersey, Connétable L. Norman, and the Culture and Leisure Member in Guernsey, Deputy F. Quin. Following the elections in October 2011 policy for the lottery in Jersey was decided by the Minister for Economic Development, Senator A. Maclean.

 

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 2011 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 (resigned September 2011)

Mr. A. Garnier

Mr. D. Scott (Secretary)

 

The Policy of the Minister for Economic Development

 

Continuing recent policy, the Minister brought a Report and Proposition to the States, asking for approval that the total Jersey portion of the profits of the Channel Islands Lottery for 2011 should be paid to the Association of Jersey Charities for the benefit of the community and the charitable needs of the Island. The Proposition also asked for States approval to set aside as a reserve, 10% of the Jersey surplus for 2011.

 

The remaining 90% profit, according to the provisions of Regulation 4(5) of the Gambling (Channel Islands Lottery) (Jersey) Regulations 1975 would be applied in such a manner and for such purposes of public benefit as the States shall from time to time by Act direct. It was the Minister’s recommendation to the States that these funds be granted to the Association of Jersey Charities.

 

The proposed transfer of 10% of the Jersey profits to the Accumulated Fund is to maintain a contingency for the Association of Jersey Charities should sales of the Channel Islands Lottery decline or should the States decide to distribute profits more widely.

 

The grant due to be paid to the Association of Jersey Charities for the year is £419,572, a decrease of £4,127 on 2010.

 

During 2011 a number of the measures identified in the internal audit review of 2009 were implemented. This caused disruption in the supply of lottery tickets and upheaval for the retail network. Ticket sales in Jersey recovered towards the end of 2011 and the measures undertaken will begin to bear fruit in 2012. During 2011 the way both islands purchased tickets from Scientific Games International was changed from a price per thousand to a percentage of sale. This followed the tender exercise in 2010 and is designed to leverage Scientific Games’ expertise in ticket design, game structure and marketing.

 

The Economic Development Department is acting as main agent for the Channel Islands Lottery in Jersey until a partner to store, distribute, merchandise, and reconcile tickets can be found as a result of a tender exercise in early 2012.

 

The win ratio and percentage payout of each game was published on each ticket reverse.  

 

The Christmas Charity Draw

 

The planning and promotion of the Christmas Charity Draw remains the most important of the year and continues to draw significant public interest and support. In order to maintain this, both the Assistant Minister in Jersey and the Culture and Leisure Member in Guernsey were strongly of the opinion that the First Prize had to be seen to be rising steadily, and it was agreed that the minimum First Prize would start at £300,000 as in 2010.

 

2,600,000 tickets were printed for this Draw, 300,000 more than in 2010. In addition to this figure, tickets were available via electronic terminals in Jersey only. 

 

The Minister reports that 1,362,500 tickets were sold from a Jersey issue of 1,560,000, representing a decrease of 57,500 (4%) on Jersey sales over the previous year. However, in addition to this figure, 17,189 tickets were sold via electronic terminals.Guernsey sold 927,200 tickets, representing an increase of 47,200 (5.3%) on their sales over the previous year.

 

The Channel Islands Lottery achieved a top prize of £751,500, exceeding the £750,000 achieved the previous year.

 

Finally special mention must be made of the vital part played by the Islands’ media for broadcasting and printing the regular press releases, which played an invaluable part in the successful promotion of the Draw.

 

The Lottery Show

 

The Christmas Lottery Draw was broadcast by Channel Television. The appreciation of the Minister goes to Mrs. Karen Rankine, Managing Director (Broadcast) and the staff at Channel Television for their continued support.

 

Marketing and Promotion

 

Marketing for the Lottery was undertaken by the Departments’ Officers in both

Jersey & Guernsey.

 

The Year’s Ticket Sales

 

Ticket sales for the year (inclusive of the Christmas Draw) totalled £3,992,711, with £2,174,211 being sold in Jersey and £1,818,500 in Guernsey. This showed a combined sales increase of 6.17% with Jersey sales down 2.94% and Guernsey up 19.6%.

 

There were 9 scratch-card games promoted throughout the year. £1,685,809 worth of tickets was sold in total (£794,509 worth of tickets in Jersey and £891,300 in Guernsey). Jersey sales were down 3.11% and Guernsey sales up 39.17%.

 

The Lottery Website at www.gov.je

 

Once again 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 277 Jersey charities. The Minister 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. The provision of the States grant is governed through a Service Level Agreement.

 

Grant applications from members up to a maximum of £20,000 are considered by the Executive Committee at their quarterly meetings. From September 2003, the maximum grant available was £20,000 in any 2 consecutive years, but since 30th

September 2008 this was changed to £20,000 in any one year.

 

The relationship whereby the Minister is able to provide funding to the Association, who are then able to assist its membership, works well. The grants approved in 2011 by the Association of Jersey Charities are listed below and illustrate the very real benefits accrued by Lottery profits for local good causes.

 


List of Applications Approved in 2011 (from the 2010 Grant)

 

 

 

£

Little Sisters of the Poor

Towards major refurbishment

20,000.00

Community Savings Ltd

For up to 3 part time staff salaries

20,000.00

Friends of the Bridge

For up to 39 play-scheme places

5,000.00

Tools for Self Reliance

Half the cost of a replacement van

2,307.00

Triumph Over Phobia

For training, books and running costs

5,000.00

Duke of Edinburgh Award

Towards Assistant Youth Worker Salary

10,000.00

7 Overseas (Jersey) Squadron

Refurbishment of shower block

20,000.00

Jersey Employment Trust

Towards refurbishment of 2 workshops

20,000.00

St John Ambulance

Towards cost of a new ambulance

20,000.00

Jersey Citizen's Advice Bureau

Debt Advisor Salary

16,008.00

Roseneath Centre

Team Leader Salary

16,666.00

Societe Jersiase

Decoration & presentation equipment

627.30

Jersey Child Care Trust

Language for Life training & 5 assisted nursery places

20,000.00

ACET Jersey

Part HIV/AIDS Educator salary

20,000.00

Headway (Jersey) Limited

Physio salary & minibus running costs

20,000.00

Jersey Association of Cancer Nurses

to host a medical conference

3,750.00

Good Companions Club

for CCTV security system

4,136.00

Centre Point Trust

to cover transport costs for one year

20,000.00

Jersey One World Group

2 year salary for Educational Officer

6,000.00

Jersey Heritage Trust

catalogue update costs

7,780.00

Maison des Landes Trust

towards conversion costs

20,000.00

Glanville Home

redecoration, tarmac and railing repairs

19,220.00

Silkworth Lodge

to replace heating system & replacement windows

14,805.00

Abbeyfield Jersey Society

Refurbishment

20,000.00

George V Cottage Homes Residents Assoc

Travel & Catering Costs

1,220.00

Gorey Youth Project

Youth Worker Part Salary for 2 years

20,000.00

Move On Youth Project

Kitchen Equipment & building work

20,000.00

Jersey Council on Alcoholism

New central heating & oil tanks

16,061.00

Jersey Youth Trust

Website & Counselling staff costs

20,000.00

Shelter Trust

Re-fit of new Accommodation

20,000.00

Durrell

Disabled toilets, access, hear loop

20,000.00

Societe Jersiais

Decoration & presentation equipment

17,405.00

Brig-y-Don

Admin salary & Computer set up

19,180.00

Arts in Health Care

Towards 3 concerts

9,000.00

JASS

Physiotherapist costs

600.00

Brighter Futures

Part salary of bi-lingual facilitator

10,089.00

 

 

504,854.30

 

 

 

 

 

States Treasury Recharges

 

The Department has a Service Level Agreement with the Shared Services Division of Treasury and Resources for financial, administrative and audit support with the C.I. Lottery. This includes services such as preparing accounts on behalf of both Islands, reconciling winning tickets, paying commissions, auditing accounts and being present at the Christmas Lottery Draw and for which the Treasury charged the Department a fee of £16,500.

 

The Minister would like to thank the relevant staff of the Shared Services Division of Treasury and Resources.

 

The final accounts for the C.I. Lottery (unaudited) up to December 2011 are noted overleaf.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Highlights:

 

Closing Net Asset Position of £576,462 an increase of 9.4% on 2010

 

Net Revenue Income of £49,315, an increase of 4.8% on 2010

 

 

 

Key Results

 

Changes in NAV

 

 £’000

2010 NAV   527

Jersey Ticket Sales                 2,180

Guernsey Contribution           1,100

Prizes                                      (2,425)

Other I&E                               (386)

Grant Paid (90%)                    (420)

2011 NAV  576

 

Changes in Net Asset Value from 2010

 

The States agreed to hold the grant to the Association of Jersey Charities in 2011 at 90% of the total distributable profits (£466,191) with the remaining 10% being retained within the Fund. The Net Asset Value (NAV) of the Fund increased by the amount of the retained profits (£49,315) (9.4% of opening NAV).

 

The Fund also invested monies previously held in the consolidated fund in the CIF during 2011, as detailed below.

Key Variances from 2010

 

 £’000

2010 NRI   47

Guernsey’s Contribution         (188)

Jersey ticket sales  36

Other Operating Expenditure  237            

Grant to Charities                    (4)

Other Variances            (79)  

2011 NRI 49

 

Performance compared to 2010

 

The NAV of the Fund has increased in line with policy by the 10% retained profits. Profits are calculated as ticket sale income less prizes and operating costs:

 

Guernsey’s Contribution to Prize Fund

£188,150 (20.6%) more than 2010

 

Guernsey’s Contribution to the Prize Fund increased by 20.6% in 2011 due to increased tickets sales in Guernsey.

 

Sales of tickets in Jersey

£35,638 (1.6%) less than 2010

 

Sales of tickets in Jersey decreased by 1.6% due to lower sales of Christmas Lottery tickets.

 

Other Operating Expenditure

£236,707 (10.8%) more than 2010

 

Other Operating Expenditure increased by £236,707 compared with 2010.  This was due to increases in prizes paid and unclaimed prizes of £259,572 offset by a decrease in the amount of unclaimed time-expired prizes of £22,865.

 

Grants and Subsidies Payments

  £4,127 (1.0%) less than 2010

 

The grant to the Association of Jersey Charities decreased in 2011 as a result of lower distributable profits than in 2010.

 


Performance of CIF Investments

 

The CI Lottery (Jersey) Fund joined the CIF on 1 July 2011 investing in the Long term cash and cash equivalents pool.

 

Investments are held by the CIF, which recognises income, expenditure and gains/losses on Investments. The Lottery Fund recognises only gains or losses on the units held in the CIF in the OCS.

 

The table below shows the share of transactions in the CIF attributable to the Fund.

 

 

* Under FRS 25 Unrealised Gains on Investments held at Fair Value through the OCS are now recognised through the OCS.

 


Operating Cost Statement

 

 

 

 

2011
Actual
£’000

2010
Actual
£’000

Sales of Goods:

Guernsey Contribution to Prize Fund

1,100

912

Sales of Services:

Sale of tickets in Jersey

2,180

2,216

Loan, Bank and Notional Interest

6

7

Gains/Losses on CIF Investments

3

-

Other Revenue

-

1

 

 

 

Total Revenue

3,289

3,136

 

 

 

Supplies and Services

395

477

Other Operating Expenditure

2,425

2,188

Grants and Subsidies Payments

420

424

 

 

 

Total Expenditure

3,240

3,089

 

 

 

Net Revenue Income

49

47

 

 

 

 

 

 

 

 

 

No other gains or losses were recognised in the year.


Balance Sheet

 

 

 

 

 

 

2011
Actual
£’000

2010
Actual
£’000

 

 

 

 

 

Financial Assets

 

 

 

 

Investments held at Fair Value through OCS

529

 

-

 

 

 

 

 

 

Total Fixed Assets

 

529

 

-

 

 

 

 

 

Current Assets

 

 

 

 

Debtors

681

 

282

 

Balance due from Consolidated Fund

374

 

972

 

Total Current Assets

 

1,055

 

1,254

 

 

 

 

 

Current Liabilities

 

 

 

 

Creditors:

Balance held for the Association of Jersey Charities

420

 

424

 

Uncollected Prizes

560

 

222

 

Other Creditors

28

 

81

 

Total Current Liabilities

 

1,008

 

727

 

 

 

 

 

Net Current Assets / (Liabilities)

 

47

 

527

 

 

 

 

 

Total Assets Less Current Liabilities

 

576

 

527

 

 

 

 

 

 

Net Assets

 

576

 

527

 

 

 

 

 

Reserves

 

 

 

 

 

Accumulated Revenue Reserves

576

 

527

 

 

 

 

 

 

Total Reserves

 

576

 

527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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