2011–2012

Hon Peter Chandler MLA Minister forBusiness GPOBox 3146

DARWINNT0801

Dear Minister

Inaccordancewithsection68B(4)oftheGamingControlAct,IpresenttoyoutheCommunityBenefit FundAnnualReportfor2011-12.TheAnnualReportdetailstheoperationsoftheCommunityBenefit Committee during the financial year, including full listings of grant recipients and purposes.

Yourssincerely

Anne Bradford

Chairperson

Community Benefit Fund Committee

Contents

Community Benefit Fund Committee 2011-12Annual Report...... 2

Highlights...... 2

Table 1: Community Benefit Fund Summary ofActual Cash Flow 2011-12...... 2

Community Benefit Fund...... 3

Administrative Responsibility andAssistance...... 3

Committee Membership and Meetings...... 4

Changes toRegional Names and/or Boundaries...... 4

Industry Contribution to Community Benefit Fund...... 5

Community Benefit Fund Levy - Licensed Hotels...... 5

Community Support Contributions – Licensed Clubs...... 5

Operation of the Fund...... 6

GamblingAmelioration Grants...... 6

Gambling Research...... 7

Major Community Grants...... 7

Community Organisation Grants(small grants)...... 7

Table 2: Community Organisation Grants approved in 2010-11 and 2011-12 – Summary by Region...... 8

VehicleGiftand LongTermLoans...... 9

Table3:VehicleGift/LongTermLoanApprovals...... 9

Table4:Community Organisation GrantsApproved in 2011-12...... 10

Table 5: Community Support Contributions from Licensed Clubs...... 18

Community Benefit Fund Committee

Annual Report 2011-12

Highlights

• The Community Benefit Fund received $2.127 million from the levy on electronic gaming machines in hotels

during 2011-12.

• Atotal of $1,069,616 was spent on gambling amelioration grants.

• Atotal of $211,373 was spent on gambling research grants.

• Atotal of $287,820 was spent on major community grants.

• Atotal of $470,670 was spent on community organisations grants.

• Thirteen vehicle giftsand one long term loan were approved during 2011-12.

Table 1: Community Benefit Fund Summary ofActual Cash Flow 2011-12

Revenue and Payments / Sub TotalTotal
$$
Opening Balance at1 July 2011262,000.00
Revenue - Community Benefit Levy2,127,365.34
Revenue – Returned Grants15,566.71
Total Revenue / 2,404,932.05
Payments:
GamblingAmelioration Grants1,069,615.99
Gambling Research Grants211,373.00
Community Organisation Grants470,670.44
Major Community Grants287,820.00
Total Grants allocated / 2,039,479.43
Processing anomaliesNil
Administration222,000.00
Total Expenditure / 2,261,479.43
Closing balance at 30 June 2012143,452.62

Community Benefit Fund

The Community Benefit Fund was established to provide funding support for gambling-related research and amelioration programs concerned with problem gambling, as well as community benefit grants which provide assistance forgeneral community development and improvement purposes.

Section 68Aof the Gaming ControlAct,provides that:

1.the Director (ofLicensing) mustmaintain in theAgency’s OperatingAccount a fund tobe known as the

Community Benefit Fund; and

2.Moneys in the Community Benefit Fund are to be applied for the following purposes:

a.research into gambling activity,including the social and economic impact ofgambling on individuals, families

and the community;

b.promotion ofcommunity awareness and education in respect ofproblem gambling and provision of

counselling, rehabilitation and support services for problem gamblers and their families in theTerritory;

c. funding of community projects and services of benefit to communities throughout theTerritory; and

d.management and administrative support ofthe Fund.

The Fund receives a 10 percent levy on player loss from electronic gaming machines in licensed hotels, unclaimed prizes paid tothe Director ofLicensing and proceeds from items forfeited under theGaming ControlAct.Each year the Minister forRacing, Gaming and Licensing determines how this money will be distributed by the fund in terms

ofgambling amelioration, small and major community organisation grants and administration.

Tworounds ofsmall community organisation grants and vehicle gifting /long term loans are conducted every year, as well as one round ofgambling amelioration and major community organisation grants. Each round is advertised in local papers throughout theTerritory.

The assessment of these applications is the responsibility of the Community Benefit Committee (‘the Committee’) which has been established by the Minister forRacing, Gaming and Licensing toadvise and assist the Minister in the operation ofthe Fund.

The Committee also advises the Minister about the obligations oflicensed clubs throughout theTerritorytoprovide

direct community benefit contributions to their local communities, as required under theGaming MachineAct. Under the Gaming ControlAct,the Director ofLicensing may approve funding forgambling-related research.

Administrative Responsibility

Under the Gaming ControlAct(theAct),the Director ofLicensing (the Director) has responsibility tomaintain the Community Benefit Fund (CBF).The Director’s duties in relation to the CBF can be broadly summarised as follows:

• maintain the CBF in the agency operating account;

• determine the revenue of the CBF through assessing gaming machine levy;

• monitor and report on club community contributions; and

• approve funds forgambling related research.

Community and Justice Policy in the Department ofJustice is responsible forthe coordination, management and administration ofthe program.This includes secretariat and executive support tothe Committee as well as promoting the program within the wider community.The secretariat is also responsible forthe management of amelioration support and research activities, overall fund administration and general reporting ofthe program activities and progress toGovernment and other stakeholders.

The operation ofthe program is undertaken with the assistance ofthe GrantsGovernance Unit in the Department ofJustice, which processes all applications in preparation forassessment, the preparation ofagreements, payments, acquittal correspondence and documentation.

Licensing inspectors in the Department ofJustice are responsible forensuring returns are provided by each club and checking thatcontributions claimed on the returns are eligible.

Committee Membership and Meetings

In establishing the Community Benefit Fund Committee, it has been determined that the Committee is to comprise of at least three community representatives and threeofficers from government agencies.

Community members ofthe Committee are appointed in an honorary capacity by the Minister.Nominal fees for attending Committee activities may be paid atthe discretion ofthe Minister.Community members are also entitled toreimbursement forout ofpocket expenses in meeting obligations arising from participation in Committee activities, consistent with normal government policy.

During 2011-12 the following members served on the CBF Committee forthe periods listed below.The three year appointments forall committee members expired on 6April 2012.

• Austin Chin (Darwin)1 July 2010 – 6April 2012

• Fred Marrone (Darwin)1 July 2011 – 6April 2012

• Sharon Wilson (Darwin)1 July 2011 – 6April 2012

• Clive Scollay (Alice Springs)1 July 2011 – 6April 2012

• Christine Godden (Alice Springs)1 July 2011 – 6April 2012

• David Mitchell (Nhulunbuy)1 July 2011 – 6April 2012

• Michael Martin (Darwin)1 July 2011 – 6April 2012

• Ainslie Ward(Darwin)1 July 2011 – 21 July 2011

Government Representatives

• Anne Bradford (Chairperson)1 July 2011 – 6April 2012

Department ofJustice

• Natalie Bellew1 July 2011 – 25 July 2011

Department ofChildren and Families

• Hania Radvan1 July 2011 –April 2012

Department ofNatural Resources,

Environment,TheArts and Sport

The Committee meton three occasions during 2011-12. New committee members were appointed in July 2012.

Changes toRegional Names and/or Boundaries

During 2011-12 a review ofregional boundaries and names was undertaken.There were several changes resulting from this review:

1.the NTWide region was previously forany application thatserviced more than one region. Inmany cases it did not service the entire NorthernTerritory,so it was deemed that“Multi Region” was a more accurate description.

2.Darwin and Darwin Regional areas were combined so thatapplicants which service both Darwin and

Palmerston will not be classified as multi region.

3.Some region names were changed to be more inclusive of surrounding areas.

Below is a list ofthe changes:

• Darwin and Darwin Regional regions were combined and renamed Northern region;

• EastArnhem,Tiwi Islands, Jabiru and Maningrida were combined and renamedArnhem region;

• Alice Springs was renamed Central region;

• Tennant Creek was renamed Barkly region; and

• NorthernTerritorywide was renamed Multi region.

Industry Contribution to Community Benefit Fund

The gambling industry is a major contributor to the NorthernTerritory economy, with significant investment, employment and taxation revenue effects.Itis also a key element in the broader recreational, hospitality and tourism sectors.

However, the industry carries the potential for significant negative social consequences as a direct result of problem gambling aspects, particularly in regard tothe operation ofelectronic gaming machines.Toestablish a responsible and balanced position for the industry, government requires that this sector of the gambling industry contributes tomeasures toaddress the adverse effectsit created and more generally,toimprove the broader community environment within which the machines operate.

The required industry contribution is achieved in two ways:

1.through the imposition of a Community Benefit Fund levy on the electronic gaming machine takings from licensed hotels; and

2.by direct support tocommunity improvement and development by licensed clubs operating electronic gaming machines.

Community Benefit Fund Levy - Licensed Hotels

The Fund is established under the Gaming ControlActto consolidate and manage the Community Benefit Fund levy collected from the operation of electronic gaming machines in licensed hotels. Funding is directed to specific areas of activity as specified in the legislation.

Community Support Contributions – Licensed Clubs

As part of the arrangements for allowing gaming machines in community venues, clubs are required to make contributions tothe local community and report those contributions on a regular basis. Guidelines exist toclarify what can be legitimately reported as a contribution.

Section 68B(2)(b) of the Gaming ControlActrequires the Community Benefit Fund Committee ‘to monitor the

contribution thatclubs thatare licensees under the Gaming MachineActmake tothe community’.

In 2011-12, community support contributions from licensed clubs totalled $2.81 million, equating to 11.0% of net gaming machine revenue received.This represents an increase of 1.1% over the 2010-11 community support contributions, which totalled $2.47 million, equating to 9.93% of net gaming machine revenue received.

(Table5 refers)

Operation of the Fund

PerformanceTargets

The following performance targets were setfor2011-12:

• 100% accuracy of grant payments processed; and

• 100% specified grant timeframes met.

Both performance targets were achieved during 2011-12.

GamblingAmelioration Grants

The GamblingAmelioration GrantsProgram was established tosupport interventions thatreduce problem gambling and minimise the harms thatresult from gambling. Interventions can range from community awareness and education through tothe provision ofcounselling, rehabilitation or support services forproblem gamblers and

their families.

In 2011-12, four organisations were funded a total of $169,905 to continue their 2010-11 programs for a further two

months, as follows:

• AmityCommunityServicesIncorporated received funding of$116,573toenable thecontinuation ofitsgambling intervention service and education program, individual assessment and counselling, maintenance ofits website and the Gambling Counselling Helpline as well as an Indigenous Gambling Intervention Service Network;

• Anglicare NTreceived funding of $28,333 to continue its integrated problem gambling service (harm minimisation program) in Darwin andAlice Springs including addictions and financial counselling as well as ongoing review, evaluation and improvement to its existing program;

• WaltjaTjutangku Palyapayi inAlice Springs received funding of $8,333 for the continuation of Stage 2 of the WiseUse ofMoney workshops.The workshops target 19 remote communities in theAlice Springs region and supports families to gain skills in governance and money management; and

• Somerville Community Services received funding of $16,666 to continue its problem gambling financial

counselling service in Darwin and Palmerston.

In addition to the above extended grants, two new grants were approved in 2011-12, totalling $885,600, as follows:

• Amity Community Services Incorporated received funding of $785,600 to continue their gambling intervention service and education program, individual assessment and counselling, maintenance ofits website and the Gambling Counselling Helpline as well as an Indigenous Gambling Intervention Service Network for a further twelve months; and

• Somerville Community Services received funding of $100,000 to continue its problem gambling financial

counselling service in Darwin and Palmerston fora further twelve months.

The Department of Justice, Victoria was also paid $14,111, as the NorthernTerritory’s contribution to the National

Online Problem Gambling Project.

Gambling Research

The Gambling and Research GrantsProgram supports gambling related research activities, analysis and development ofinitiatives toaddress issues ofproblem gambling and todevelop policy and approaches to encourage responsible gambling practices.

In 2011-12, two organisations were funded a total of $195,901, as follows:

• CharlesDarwinUniversityreceivedfundingof$155,172tocontinueitsresearchprojectsrelatingtoIndigenous gambling,applicabilityofotherjurisdictionalpolicyframeworksandanalysisoftheexistingprevalencedataset;and

• Menzies School of Health Research received funding of $40,729 for an ongoingAustralian Research Council’s

linkage research project into the spatial distribution ofgambling harm.

The Department of Justice, Victoria was also paid $15,472, as the NorthernTerritory’s contribution to Gambling

ResearchAustralia.

Major Community Grants

The Major Community Grants Program was established in 2008-09 to provide funding support to not for profit

NorthernTerritorybased organisations forcommunity development and improvement purposes.

The maximum grant available for each project is $200,000 per annum for a maximum of two years. Organisations are expected toeither secure funding from other sources beyond the time ofthe grant or ensure a suitable plan is devised towind down the activity with minimal disruption.

In 2011-12, nine organisations were funded a total of $287,820, as follows:

• CentralAustralianArt Society Incorporated received funding of $10,268 to re-establish their exhibition gallery;

• GAPCommunity Childcare Centre Incorporated received funding of $13,000 to undertake an outdoor upgrade;

• Darwin CommunityArts Incorporated received funding of $136,950 for the Chambers CrescentTheatre;

• Operatunity Incorporated received funding of $7,900 for professional fees;

• The Karama Community and Children’s Centre Incorporated received funding of $32,000 to upgrade and restore the outdoor playground flooring;

• The Rotary Club of Litchfield/Palmerston received funding of $15,000 for the Howard Springs Skateboard and

Bike facility;

• Thamarrurr Incorporated receiving funding of $47,000 for the Wadeye EarlyYouth Intervention Project;

• Variety, the Children’s Charity,Tent 82 NorthernTerritory Incorporated received funding of $14,750 to host various events throughout the year; and

• Barkly RegionalArts Incorporated received funding of $10,952 to extend the production service of the

organisation.

Community Organisation Grants(small grants)

Community Organisation grants are available tosupport projects which have the potential toimprove the wellbeing and lifestyle ofTerritorians. Funding for a wide range of purposes may be provided to eligible not for profitTerritory based community organisations.

Funding is generally limited to amounts of $5,000 or less, although higher amounts may be approved under specified conditions outlined in the grant guidelines. Funding is provided for non-recurrent expenditure and is available only for clearly identified projects which can be completed within specified time frames.

Greater consideration is given topriority issues such as level ofexisting community support and circumstances such as remoteness or high levels of socio-economic disadvantage. Preference is also given to requests for lower value amounts.This combined approach allows for an equitable distribution of available funds throughout the NorthernTerritorytoas many worthwhile projects as possible.

Table2 provides a regional summary ofapplications received and approved.

Table 2: Community Organisations Grants (small grants) approved in 2010-11 and 2011-12

Summary by Region

Region

Applications

Received

Amount

Requested

$

Amount

Approved

$

Number

Approved

2010-112011-122010-112011-122010-112011-122010-112011-12

East Arnhem/

Arnhem*91536,44564,41224,85937,881910

Tennant Creek/

Barkly*8735,21129,23416,50012,59774

Alice Springs/

Central*5028209,034103,87284,88962,4503923

Katherine3020106,35670,67831,40033,7011714

NT Wide/ Multi-

Region*212682,313103,11422,00045,6721017

Darwin/Darwin Regional/ Northern*

125106455,570415,889228,310238,3469783

Total243202924,929787,199407,958430,647179151

*Denotes new region name

All amounts are GSTexclusive (where applicable)

VehicleGiftand LongTermLoans

Whilst the CBF Committee considers applications forvehicle giftsand long term loans and makes recommendations tothe Minister,the actual vehicles are not funded by the levy on electronic gaming machines, but instead, by a levy charged by NorthernTerritoryFleet on all government vehicles.Applications forvehicle gifting or long term loans are called foron a biannual basis with similar criteria tothatofCommunity Organisation grants. During 2011-12 a total of54 vehicle giftand long term loan applications were received.The Community Benefit Fund Committee recommended 13 vehicle gifts and one long term loan be approved.

These recommendations were approved by the Minister forRacing, Gaming and Licensing under theFinancial

ManagementAct.Table3 lists the vehicles approved in 2011-12.

Table 3: Vehicle Gift / Long Term LoanApprovals

Organisation / Region / Vehicle Gift
ForsterFoundation forDrug Rehabilitation / Northern / Sedan
HPAIncorporated / Northern / 2WD Utility
BawinangaAboriginal Corporation / Arnhem / ToyotaTarago
Step Out CommunityAccess Service Incorporated / Katherine / Dual Cab Utility
Lifeline CentralAustralia Incorporated / Multi Region / Station Wagon
Barley RegionalArtsIncorporated / Barkly / TroopCarrier
St JohnAmbulanceAustralia (NT) Incorporated / Central / TroopCarrier
Akeyulerre Incorporated / Central / Dual Cab Utility
Alzheimer’sAustralia NTIncorporated / Northern / KIACarnival
The Gathering Incorporated / Northern / 4WD LightTruck
MJD Foundation Incorporated / Arnhem / Station Wagon
Golden Glow Corporation NTProprietary Limited / Katherine / Land cruiser
Animal Management in Rural and Remote Indigenous Commu- nities Incorporated / Multi Region / 4WD Utility
TeachaboutIncorporated / Katherine / TroopCarrier
(4 week loan)

Table4 provides details ofall Community Organisation grants approved.

Table 4: Community Organisation GrantsApproved in 2011-12

Organisation / Grant Purpose / Amount $
ALICE SPRINGS / CENTRAL
8 CCC Community Radio Inc / Purchase three replacement signs / $5,000.00
Alice Springs SquashAssociation Inc / Hold an intensive coaching weekend / $2,727.28
CentralAustralianArt Society Inc / Support for a major annual exhibition / $2,900.00
CentralAustralian CommunityToyLibrary
Inc / Purchase display stands and book cases / $909.09
CentralAustralian CommunityToyLibrary
Inc / Purchase multicultural resources / $1,500.00
Childbirth EducationAssociation / Purchase ofbreast pumps / $3,716.00
Childbirth EducationAssociationAlice
Springs / Purchase resources tosupport the birth and beyond parent resource centre / $2,000.00
Children’s Book Council NTBranch / Children’s Literature in the Centre Festival in
March 2012 / $4,127.27
EngineersAustralia Northern Division / Produce walk/drive engineering heritage brochures
for theAlice Springs Region / $1,800.00
Federal Football Club / Purchase commercial grade ice machine / $3,181.81
Gap Community Child Care Centre / Purchase children’s resources upgrade / $1,500.00
Guide Dogs NT / “Life Skills Camp” inAdelaide / $2,700.00
HeritageAlice Springs Inc / Assistwith works toa former “entry” building / $5,000.00
Hermannsburg Volunteer Unit (NTES) Inc / Maintenance and improvement of headquarters / $3,500.00
Lifeline CentralAustralia Inc / Purchase training resources / $2,800.00
Lifeline CentralAustralia Inc / Purchase ofan Interactive Electronic whiteboard
for the training centre inAlice Springs / $3,520.00
Multicultural Community Services of
CentralAustralia / Purchase ofnew computers and training sessions / $2,500.00
Special Souls Support Group / Hold a Christmas party forspecial needs children and their families / $1,818.18
TeenChallenge Centralia Inc / Purchase ofcomputer and printer / $2,500.00
Volunteering SAand NT-Alice Springs
Office / Purchase laptop and BBQ / $2,250.00
YMCAofCentralAustralia Inc / Purchase ofnew resources and furniture / $1,500.00
YMCAofCentralAustralia Inc / Rock wall facility training / $3,500.00
YularaPlaygroup / Purchase books, puzzles, craftmaterials and outside active toys / $1,500.00
TOTAL / $62,449.63