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STATES OF JERSEY
PUBLIC LOTTERIES: REPORT FOR 2011
Presented to the States on 28th February 2012 by the Minister for Economic Development
STATES GREFFE
2012 Price code: B R.26
REPORT
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 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, the Connétable of St. Clement (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.J.H. Maclean.
Public Lotteries Board
The Public Lotteries Board is constituted in accordance with Regulation 3 of the Channel Islands Lottery (Jersey) Regulations 1975, 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 for Economic Development 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 and 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)
Applicant Project £
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 Société Jersiaise Decoration and presentation equipment 627.30 Jersey Child Care Trust Language for Life training and 5 assisted nursery places 20,000.00 ACET Jersey Part HIV/AIDS Educator salary 20,000.00 Headway (Jersey) Limited Physiotherapist salary and 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 and replacement windows 14,805.00 Abbeyfield Jersey Society Refurbishment 20,000.00 George V Cottage Homes Residents' Travel and catering costs 1,220.00 Association
Gorey Youth Project Youth Worker part salary for 2 years 20,000.00 Move On Youth Project Kitchen equipment and building work 20,000.00 Jersey Council on Alcoholism New central heating and oil tanks 16,061.00 Jersey Youth Trust Website and counselling staff costs 20,000.00 Shelter Trust Refit of new accommodation 20,000.00 Durrell Disabled toilets, access, hearing loop 20,000.00 Société Jersiaise Decoration and presentation equipment 17,405.00 Brig-y-Don Admin salary and 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
Total: 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 N.A.V. | £'000 527 2,180 1,100 (2,425) (386) (420) | 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 by the Fund. The Net Asset Value (N.A.V.) of the Fund increased by the amount of the retained profits (£49,315) (9.4% of opening N.A.V.). | ||
2010 N.A.V. Jersey Ticket Sales Guernsey contribution Prizes Other I&E Grant paid (90%) | ||||
2011 N.A.V. | 576 |
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Key Variances from 2010 | £'000 47 (188) 36 237 (4) (79) | The Fund also invested monies previously held in the consolidated fund in the C.I.F. during 2011, as detailed below. Performance compared to 2010 The N.A.V. 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: | ||
2010 N.R.I. Guernsey's contribution Jersey ticket sales Other Operating Expenditure Grant to Charities Other variances | ||||
2011 N.R.I. | 49 | 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 ticket 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. | ||
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Performance of C.I.F. Investments
The C.I. Lottery (Jersey) Fund joined the C.I.F. on 1st July 2011, investing in the long-term cash and cash equivalents pool.
Investments are held by the C.I.F., which recognises income, expenditure and gains/losses on Investments. The Lottery Fund recognises only gains or losses on the units held in the C.I.F. in the O.C.S.
The table below shows the share of transactions in the C.I.F. attributable to the Fund.
States of Jersey – Common Investment Fund Attributable to the Channel Islands Lottery (Jersey) Fund
2011 £'000
Income 3 Expenditure 0 (Losses) on Investments held at Fair Value through the OCS* 0 Total Gains recognised in the Fund 3
* Under FRS 25, Unrealised Gains on Investments held at Fair Value through the O.C.S. are now recognised through the O.C.S.
Operating Cost Statement |
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Sales of Goods: Guernsey Contribution to Prize Fund Sales of Services: Sale of tickets in Jersey Loan, Bank and Notional Interest Gains/Losses on C.I.F. Investments Other Revenue | 2011 Actual £'000 1,100 2,180 6 3 – | 2010 Actual £'000 912 2,216 7 – 1 |
Total Revenue | 3,289 | 3,136 |
Supplies and Services Other Operating Expenditure Grants and Subsidies Payments | 395 2,425 420 | 477 2,188 424 |
Total Expenditure | 3,240 | 3,089 |
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Net Revenue Income | 49 | 47 |
No other gains or losses were recognized in the year.
Balance Sheet
| 2011 Actual £'000 | 2010 Actual £'000 |
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Financial Assets Investments held at Fair Value through OCS | 529 | – |
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Total Fixed Assets Current Assets Debtors Balance due from Consolidated Fund | 529 681 374 | 282 972 | – |
Total Current Assets Current Liabilities Creditors: Balance held for the Association of Jersey Charities Uncollected Prizes Other Creditors | 1,055 420 560 28 | 424 222 81 | 1,254 |
Total Current Liabilities Net Current Assets/(Liabilities) Total Assets Less Current Liabilities | 1,008 47 576 | 727 527 527 | |
Net Assets | 576 | 527 |
Reserves Accumulated Revenue Reserves 576 527
Total Reserves 576 527