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Public Trustee NSW ANNUAL REPORT 2006/07

3 Our Vision

3 Our Charter

4 Performance Discussion

6 Our plans for 2007/08

8 Our Service to Clients

13 Client Funds Management

17 Our Community Involvement for 2006/07

21 Our Financial Performance

28 Our Management

33 Our Compliance

38 Financial Statements

69 Appendices

76 Client Access to Services

77 Index

The Hon John Hatzistergos, BEc LLM MLCMPAttorney General and Minister Justice

Level 36Governor Macquarie Tower1 Farrer PlaceSYDNEY

Dear Attorney

Pursuant to section 10 of the Annual Reports (Statutory Bodies) Act 1984, I have pleasure in presenting the Annual Report of the Public Trustee for the year ended 30 June 2007 for presentation to Parliament.

Peter WhiteheadPublic Trustee

Public Trustee NSW19 O’Connell Street, SydneyTelephone (02) 9252 0523

www.pt.nsw.gov.au

ISSN 1329-1750The total external costs to produce 500 Annual Reports is $17,870 (ex GST)The Annual Report will be available on our website www.pt.nsw.gov.au

Public Trustee NSW is a business unit of the Attorney General’s Department of NSW

Contents

3Public Trustee NSW Annual Report 2006/07

To be the best provider of personal Trust services in New South Wales measured by routine provision of both high level client service and value to our organisation.

Our aim is to provide value in 3 ways:

• To our clients, by meeting their needs from a range of our products

• To the corporation, by achieving better financial results and enhancing corporate governance, and

• To our staff, by creating in them the satisfaction that they are being developed to make an impact by achieving personal goals, client and corporate outcomes

Inherent in this purpose is the requirement to administer each estate and Trust according to law and in the best interests of the beneficiaries with prudence, skill and impartiality without interference from third parties.

Our CharterWe operate pursuant to the Public Trustee Act 1913 and the Public Trustee Regulation 2001. Major legislation impacting on our operations is the Trustee Act 1925 and the Wills, Probate and Administration Act 1898. We have specific obligations to accept small value estates and Trusts.

How we help our clients, the people of NSW:

• We manage their assets and help plan for their future under a Power of Attorney

• We provide advice with their Estate Planning

• We make their Will should they need a professional executor and/or Trustee

• We manage deceased estates so assets at death are dealt with according to clients’ wishes

• We act as Trustee of fixed or discretionary Trusts created in Wills, Deeds and Court Orders for families, infants and people with disabilities

• We act as Financial Manager for people with disabilities

We are guided by our Corporate Values:

• Client Focus

• Quick Response

• Integrity

• Teamwork

• Independence

• Accountability

• Fairness

• Competitive Pricing

Our Vision

4 Public Trustee NSW Annual Report 2006/07

Performance DiscussionThe NSW State Plan has a key focus on providing better customer service to the people of NSW. At Public Trustee NSW our key priority is to meet our legal and fiduciary obligations and make the client experience as professional as possible. This is not only good for business, but allows for reliable and compliant services in the complex personal trustee industry. Our major strategies which relate to improving our customer service are:

• Our restructure of our Branch outlets aims for more flexible service delivery, dedicated client contact officers and increased efficiency in back office support

• Our staff training and development program encompasses both technical and customer service skills,

• Enhancing our use of technology in document generation, BPay and client management systems, and

• Continually seeking feedback from our clients

The following pages summarise key results for 2007 and our plans for the future.

I am pleased to report that our financial position strengthened this year: our equity increased to $62m, with our financial results boosted by an increase in revenue from core business. Additionally our decision to invest part of our corporate revenue in a balanced portfolio has continued to provide dividends and provide funds for our future liabilities. Our pre-tax profit was $16.43m which included adjustments for unrealised superannuation gains and unrealised investments loans. Our operational surplus before tax and dividend was $8.95m, well above budget.

As planned, we converted a number of our business outlets into Business Centres, served by a “back-office” Operations Centre. This restructure is ongoing and the key strategic outcomes anticipated are better customer service, better staff management and development, and a better bottom line from business growth and reduced corporate overheads.

In 2007 our staff responded very positively to meeting client and business needs. Their willingness to be part of Saturday openings, remote Wills Days and seeing clients at home has had a big impact: 5% increase in Wills and Powers of Attorney. We made 11,513 Wills and 1,759 Powers of Attorney. High staff engagement has also been evident in coping with higher staff turnover in a difficult recruitment market. I thank our staff and managers for this commitment.

Our involvement with stakeholders and the community continues to be strong. We have worked on national law reform proposals for succession, guidelines for capacity assessment and Special Disability Trusts, and have been represented on a number of interAgency and industry committees related to our services. We continue to sponsor Good Will Week, Seniors Week and our Fellow in Elder Law at University of Western Sydney as a way of adding value to community education about Wills, estate planning and elder law issues.

The compliance obligations in running our business are extensive. They arise from both our fiduciary obligations and our position within Government. This year we have made considerable progress in a number of State Records Act requirements, OH&S inspections, Information Security Certification and Business Continuity Planning. Our risk and audit program is fine tuned. In respect of our fiduciary compliance we continue to monitor and review how we meet out investment obligations and our FSRA licence obligations, and comprehensively audit our legal and trustee operations.

Key Result Areas 2006/07

We have, after an analysis of our business environment, settled on 4 Key Result Areas necessary to provide value to our stakeholders:

• KRA 1 Our Clients – We will provide professional service to clients

• KRA 2 Our People – We will continue to train and develop our highly valued employees

• KRA 3 Our Financial Performance – We will effectively manage our financial performance

• KRA 4 Our Governance – We will have effective corporate governance and risk management

4


Financial• Operational surplus before tax and dividend: $8.95m,

542% above budget

• Accounting profit before tax: $16.43m including adjustment for unrealised superannuation gains and unrealised investment losses

• 8% saving on budgeted expenditure

• Revised fee structure (including annual CPI based review) submission lodged

• Savings in recurrent expenditure beginning to be realised from implementation of new Branch structure

• Office Accommodation Strategy and Total Assets Management Plan completed

• Review completed of accountabilities in financial and strategic services to maximise its contribution to financial management

Funds Management• Value of funds grew to $1,278m at June 2007

• Returns exceeded benchmark for all portfolios

Client Services and Products• 5% increase in Wills and 5% increase in Powers

of Attorney made for prospective clients over the last year

• Service level targets achieved in estate administration

• High client satisfaction levels maintained in all but 2 locations

• Increase in Saturday Wills Days, Remote Wills Days and CALD community activities

• Five of six proposed Branches restructured

• Legal Branch restructured into specialist litigation and property sections

• Advances in technology for Wills document generation, BPay and client management systems

• Completed review of our client communication plans to include all legal communications

Our People• Reviewed Human Resources strategic plan incorporating

succession planning and recruitment strategies

• Reviewed and updated recruitment information packs

• Developed and implemented a portal on PTnet for knowledge delivery to staff

• 80% of staff were provided with 3 days training

• AGD kit on dignity at work provided to all staff

• Undertook workplace hazard inspections and educated staff in their OH&S responsibilities

Our Governance• AEIFRS compliance fully audited

• Continued to monitor the impact of shared services with AGD

• Successfully tested key elements of Business Continuity Plan

• Functional Retention and Disposal Authority approved by State Records

• Continued conversion to TRIM (records management)

• All our sites inspected for workplace hazards and all high priority hazards actioned with 48 hours

• Information Security Management System implemented for ISO/IEC 27001 IS security certification

• Records Management Disaster Recovery Plan completed for approval

The Way ForwardOur key challenge is to keep our client service both professional and relevant as we are in a very competitive market. Our strategies for staff development and business development are geared to equip us to meet this challenge. Next year our knowledge management program is to be integrated and managed to maximise impact of manuals and policies on routinely reliable work performance. We are also extending client surveys to cover more of our products. Our marketing will continue to be multi faceted: integrated media, community engagement, corporate alliances, and key sponsorships. Additionally, in 2007/08 we expect our fees and charges review to be approved by Government and introduce greater industry parity in pricing.

We have good support from the Attorney General and Government, the Attorney General’s Department and NSW Treasury. My executive team is highly motivated to lead our business and meet ongoing challenges. I am confident that Public Trustee NSW will continue to meet the expectations of the NSW Government and the clients we serve.

Peter Whitehead, Public Trustee

KRA 1 Our ClientsWe will provide professional service to clients.

Our focus remains on providing professional service to clients with equity of access throughout NSW.

Our key measures of professional service are:

• Meeting our legal and fiduciary obligations

• Managing our work in a timely manner

• Obtaining client satisfaction for our services

• Clear communication with clients

• Staff development and training

Key strategies to achieve this are:

• To continue to remove error from work by ensuring adequate training, supervision, use of technology and access to current policy and procedure manuals

• Measuring the level of client satisfaction over varied areas of client satisfaction: costs, timeliness, communication, value for money, and extending our client surveys to Will and Trust clients

• Increasing access options for client services; business/organisational links, Saturday openings, Remote Wills Days, selling to centres of influence (professional bodies), expanding our programs to CALD communities, ensuring all our sites have good access for people with a disability, and continuing our home visits to clients

• To continue to implement our new Branch structure – Business Centres (front offices) and Operations Centres (back offices) – creating a work environment for professional service

• Monitoring technology enhancements to continue to improve account processing

KRA 2 Our PeopleWe will continue to train and develop our highly valued employees.

Our following key strategies in respect of our staff relate to providing a safe work environment, recruitment, training and development, and performance management:

• Continual implementation of OH&S review specifically our workplace hazard inspections and staff education about the responsibilities of all for OH&S

Our plans for

Public Trustee NSW Annual Report 2006/076

• Providing our selection committees with sound and workable templates and guidelines on how best to manage recruitment and write effective selection committee reports

• Extending the knowledge management framework to include all divisions of PTNSW

• Meeting training targets

• Recruitment of graduates and meeting and increasing Aboriginal representation in our workforce

• Introducing revised Performance, Planning and Development (PP&D)

KRA 3 Our Financial PerformanceWe will effectively manage our financial performance.

We are, subject to Government approval of our new pricing structure, budgeting for a surplus before tax and dividends of $3.64m in 2007/08 with the following key strategies:

Budget Management:

• Implementing the revised Fee structure

• Staged implementation of revised Branch structure targeting savings in recurrent expenditures

• Meeting or exceeding volume and value targets

• Monitoring the return on investment of corporate funds against an accepted benchmark

Asset Management:

• Review of office accommodation strategy

• Implementing, with Attorney General’s Department, cyclical maintenance and procurement programs and rationalising service providers

Technology:

• Maximising the use of electronic payments for our corporate finances

• Deciding on the recommendations from the TEAMS database feasibility study

• Implementing the ‘Government Broadband Service’

Governance:

• Increasing corporate knowledge of financial management including budgetary process and monitoring

Marketing:

Meeting or exceeding new business targets is driven by corporate and Branch marketing strategies. The Marketing Plan 2006/07 focuses on:

• Expanding access to our services

• Promoting our corporate capability

• Community alliances and interaction eg Good Will Week, our major sponsorship of Seniors Week, the Premier’s Christmas Concerts, Law Week, seniors organisations and business partners

KRA 4 Our GovernanceWe will have effective corporate governance and risk management.

This year there are strategies for both external and internal governance:

• Monitoring the impact of the Service Level Agreements with AGD for Human Resources and Asset Management and continuing shared services reform

• Continuing our conversion of all administrative records to TRIM

• Fully utilising the capabilities of TRIM

• Developing a Strategic Storage Plan

• Completing Phase 1 of the Wills Imaging and Storage Project

• Further developing our Information Security Management System

• Annual testing of key elements of our Business Continuity Plan

• Completing modified asset allocation of Common Fund

2007/08



Key Strategies in our 2006/07 Business Plan

• Implement new service delivery model in conjunction with the review of Branch locations and the rollout of Wills and Powers of Attorney generation software

• Implement BPay for client accounts

• Implement genealogy section for family trees and missing beneficiaries

• Implement process guides for estate and Trust administration and PTNet portal for knowledge management information

• Issue Request For Proposal for the scanning of all existing Wills and Powers of Attorney and commence scanning process

• Implement expanded program of flexible access to our services

• Implement the Marketing Plan, an integrated media campaign and business development strategies to maintain our market share and meet new business targets

Key Results 2006/07

• All service level targets achieved in estate administration with the exception of elections filed which was 89.41% against a target of 90%

• The new service delivery model was introduced with five Branches being converted to business centres and an operations centre being established in Head Office

• Delays in implementing a broadband network have delayed the implementation of the Will generation software however this is expected to be resolved in the first half of the new financial year

• B-Pay implemented for clients with over 56% of payments in matters now being made electronically

• The Genealogy section has been established and staff recruited

• A number of manuals have been published and these are distributed to staff by way of a new PTNet portal for knowledge management

• The Wills Scanning Request for Proposal was issued and a successful respondent selected. Scanning is expected to commence in July 2007

• Access to services was expanded through an increase of 16% in the number of Saturday Wills Days and an increase of 360% in the number of Remote Wills Days over 2005/06

• Market share has been maintained over 2005/06 with business targets for new Wills and Powers of Attorney exceeded

Key Client Services Strategies 2007/08

• Continue the implementation of the new service delivery model in conjunction with the review of Branch locations and the rollout of the Wills and Powers of Attorney generation software

• Increase the percentage of payments being made electronically to 70% of all payments

• Continue with implementation of knowledge management framework

• Commence scanning of Wills and Powers of Attorney

Key Marketing, Communication and Business Development Strategies 2007/08

• Expand client survey groups to include Wills clients and a new survey to more comprehensively capture feedback from beneficiaries; evaluate results and implement findings to improve client service

• Further identify and develop databases and relevant communications channels, expanding e-marketing initiatives

• Further develop new corporate Trust/Agency business and new business in executor services and intestacy referrals

• Improve existing partnerships and identify new alliance opportunities to increase access to markets and business development

• Develop new media campaign that meets Government requirements and successfully drives business

• Implement communication strategies and training to facilitate client acquisition and retention

• Deliver and expand community education campaigns eg Good Will Week and Seniors Week

Our Service to Clients


Our Services – Performance in DetailWills and Powers of Attorney for Future BusinessWills are made for people appointing the Public Trustee as executor and this is a key activity for future business. This service is both a community service and a loss leader to the organisation as we continue to offer this service at no charge. We are funded by Government for making Wills for clients who have disclosed only low value assets.

This year we made 11,513 Wills of which 48.55% were for new clients. Total Wills made were 4.6% more than last year. A key reason for the increase in Wills has been our focus on providing flexible access for clients. We were advised by 952 people that they had revoked their existing Public Trustee Will, 251 more than last year.

• A total of 67 talks were given across the State. The average attendance was 30 people per session resulting in Wills talks reaching over 1600 people

• 2 State wide Saturday Wills Days were undertaken in May and during Good Will Week in October resulting in 429 executed Wills and 63 Powers of Attorney. These Wills Days have proved to be successful at generating business and have now been incorporated into the annual marketing schedule

• Our Branches participated in an additional 8 Saturday Wills Days and 90 remote Wills Days. These generated 1232 Wills and 187 Powers of Attorney. This was an increase of 360% on the number of off-site Wills Days conducted in 2005/06 to extend community access to our services. Increased emphasis on remote Wills Days has dramatically improved the achievement of our annual Wills target

• 74 scheduled Branch Wills Days (in courthouses and community facilities) were conducted resulting in 379 Wills and 88 Powers of Attorney

• Through maximising cross selling opportunities, we achieved a 5.7% increase in clients over last year with both Wills and Powers of Attorney to June 2007 over June 2006. We also increased number of clients who made a Will after being a beneficiary by 13.5% over last year

Estates

We managed both testate (Will) and intestate (no Will) estates and by law we cannot decline an estate purely on the basis of small value. We receive community service funding from Government for low value estates. We also accept referral of estates from executors or administrators who wish to discontinue their involvement in estates. Estates administered covered a wide range of value and complexity.

• Administration was obtained in 1,807 new estates with a total value of $496.6m

• As at 30 June 2007 we had 5,496 estates on hand

• We sold 616 real estate properties to the total value of $208.6m

In addition we administer many smaller estates without the need for formal administration, attend to transferring property to the surviving joint tenant and arranging funerals where no-one else is available.

Achievements of Client Service Targets for 2006/07

• Estates with values less than $50,000: filed 89.41% with the Supreme Court within 3 weeks of estate reported (target 90%)

• Estates with values of $50,000 or more: 82.96% of estates achieved with Grant of administration within 10 weeks from reporting date (target 80%)

• Estates completed: 83.45% completed in 8 months(target 80%)

• The average time to administer estates was 5.42 months (5.38 months in 2006)

Trusts

We act as trustee, manager or receiver of funds for infants or those unable to manage their funds. The appointment is usually made by the Court under the Civil Procedure Act 2005 and the Workers Compensation Act but may also be by Deed and by the Court in its inherent jurisdiction. Trusts can be created by individuals or organisations (including Government agencies). We are receiving an increasing number of Trusts for infants from Superannuation Funds as fund managers and trustees of Superannuation Funds become more aware of our services.

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Wills

New ClientsNumber of Wills made

• 857 new Trusts with a value of $56.2m were received during the year

• As at 30 June 2007 we were managing 7,506 long term Trusts

Expert staff deal with a wide range of issues in Trusts such as the purchase and construction of dwellings, special modifications required to account for any disability or assistance for the purchase of motor vehicles. The interest of the client is the primary concern of our staff.

The investment of client funds is made in accordance with the Trustee Act. This has been described in more detail under Client Funds Management.

Other Trusts – Extending our Role

During the year we acted as Trustee in a number of ways apart from our more traditional role as Trustee for infants:

• Employee Entitlement Trusts – We act as Trustee of workers entitlements so that they are protected in the event the employer goes into liquidation

• Family Trusts – We act as Trustee and manage the assets and distribute the income and capital according to the terms of the Trust

• Retirement Villages – We act as Trustee for the unit holders’ funds

We are continually seeking to expand the different types of Trusts under which we act as Trustee, owing to the decline in compensation Trusts since tort law reform.

Attorney Services

We have a three tiered management plan under Attorney and Agency Services allowing clients to choose as much or as little help as they require whilst giving them the security of having an independent, professional Attorney:

• Future Assist – this is only acted upon if the client requests or they are no longer able to look after their own affairs

• Standby Assist – allows clients to lodge funds with PTNSW

• Active Assist – where the client requires ongoing assistance in dealing with part or all of their financial affairs

This year we received 99 new matters with a value of $38.1m.We made 1,759 Powers of Attorney for prospective clients.

As at 30 June 2007, we were managing the financial affairs of 663 clients.

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Agency Services and Corporate Business

Under an Agency Agreement we can hold funds in the Primary Portfolio and/or the Growth Portfolio of our Common fund, depending on the level of investment of our Common Fund. We act for organisations from retirement villages, Unions, sporting associations, superannuation and other Trustees, and are actively seeking to expand this area of our business. During the 2006/07 year we received 6 new Agencies with a total value of $1.4m and as at 30 June 2007 we had 24 Agencies on hand.

Development of Corporate Business

During 2006/07 we implemented corporate marketing strategies to grow our corporate Trust and Agency business. These included development of new website material for corporate business, targeted direct marketing campaigns, advertising and presentations. We achieved 47% increase in Superannuation Trust referrals with 54% increase in value,

New Estates

Number of New EstatesValue of New Estates ($m)

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New TrustsValue of New Trusts ($m)


and established a new Employee Entitlement Trust through targeting Unions. We created new networking opportunities and delivered front office staff training in expanding our business contacts and identifying business opportunities at local levels.

Management of Seized or Confiscated Assets

We attend to the management of assets seized and confiscated under the Criminal Assets Recovery Act 1990 and the Confiscation of Proceeds of Crime Act 1989.

Assets can include real estate, cash, jewellery, motor vehicles, boats and livestock. The assets may need to be sold immediately or held and either managed or maintained until further Court Orders are issued.

In 2006/07 $3.08m was paid to NSW Treasury in respect of the operation of these Acts.

Dormant Funds Act 1942

The Public Trustee is the Commissioner of Dormant Funds and recommends to the Attorney General proposals for dealing with funds relating to charitable purposes or purposes of a public character which have become dormant (inactive). No funds were determined by the Commissioner to be dormant during 2006/07.

Technology enhancements for Service Delivery

We are continually improving our processes and core business systems to streamline administration in estates and to provide an efficient service to clients.

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Further enhancements to TEAMS, our core business system were completed. Improvements included:

• An interface between TEAMS and MYOB was developed and implemented which automated the collation, preparation and lodgement of 5,000 simple tax returns freeing staff to concentrate on the more complex returns

• BPay and Electronic Funds Transfers were further enhanced resulting in 56.54% of payments being made electronically. This achieved cost savings (claims being paid more efficiently) and better client service (funds cleared overnight)

Future Assist (New dormant Powers of Attorney)

Public Trustee NSW Annual Report 2006/07 11

13

Prudent investment for our clients2006/07 Business Plan – Key Strategies and Results

Key Strategy Result

Manage clients’ funds prudently Policies reviewed and client investment reviews continue to be undertaken

Complete asset allocation changes for Common Fund Growth Portfolio

Not yet achieved – taxation issues being resolved. Completion deferred to 2007/08

Meet or exceed Benchmark returns Returns in line with benchmarks

Assets Under Management

Within each matter PTNSW holds assets such as real estate, investments, Trustee acquired investments, and other personal property. These are assets of client matters – not of the Public Trustee – and had an estimated value of $405m at June 2007.

Funds Under Management

Funds received for each client matter are placed in the Public Trustee’s Common Fund for separate investment by the Fund. The total value of client funds was $1,279m at June 2007.

The following summarises the components of the assets under management and the Common Fund Portfolios.

Components of Assets under Management and Common Fund Investment of Funds

2006/07$’000

2005/06$’000

Deceased Estates 750,782 708,452

Trusts (including Agencies) 715,825 642,212

Attorney Services 191,485 183,132

Other 25,184 27,743

TOTAL NET TRUSTS 1,683,276 1,561,539

Represented by

Funds in Common Fund

- Primary Portfolio 1,005,777 876,569

- Growth Portfolio 272,815 276,824

Estimated Unrealised Client Assets

- Real Estate 284,002 303,944

- Investments 100,046 89,632

- Mortgages 3,320 24,016

- Other Personal Property 27,682 3,352

Total Client Funds & Unrealised Assets 1,693,642 1,574,337

Deduct

Estimated Trust Liabilities

- Client Payables 10,366 12,798

TOTAL NET TRUSTS 1,683,276 1,561,539

Client Funds Management



Investment of Funds

The Public Trustee’s Common Fund consists of two Portfolios for the investment of funds received in our capacity of executor, Trustee or Attorney.

These funds are initially placed in the Primary Portfolio. Investment plans are prepared, and if exposure to growth assets is required the Common Fund acquires units in the Growth Portfolio on behalf of the particular estate or Trust.

A Common Fund management fee of 0.5% (plus GST) is charged against the income of the Common Fund.

Primary Portfolio

The Primary Portfolio invests in fixed interest securities, such as bonds, commercial mortgages, and term deposits, which are generally held to maturity. The Portfolio has an objective of providing an income stream and return of the original capital sum (capital guaranteed).

The Bond Portfolio is managed by New South Wales Treasury Corporation (TCorp).

The mortgages are managed by PTNSW, and consist of interest only commercial property loans. We have a rigorous methodology for loans assessment, and ensure that they are prudent Trustee loans. Typically, loan terms are between 3 and 5 years.

The “at call” interest rates for client funds in this Portfolio remained high, as detailed below. This was achieved by strong book returns and earnings on reserves.

Matter Type Period Rate (% pa)

Ongoing Estates Trusts 01.07.06 to 25.01.07 6.50

26.01.07 to 23.04.07 6.75

24.04.07 to 30.06.07 7.00

Agencies 01.07.06 to 31.08.06 6.50

01.09.06 to 23.04.07 6.75

24.04.07 to 30.06.07 7.00

Standard Estates & Trusts

01.07.06 to 25.01.07 4.75

26.01.07 to 30.06.07 5.00

The book value returns for the Primary Portfolio are shown below. The market value return is also included for performance comparative purposes.

Investment Category

Book Return (% pa)

Market Return (% pa)

Bonds 6.15 4.01

Mortgages 7.49 6.88

Cash (Liquidity) 6.40 6.40

Total Portfolio (weighted average)

6.28 4.42

The bonds are benchmarked against the UBS 0+YR Composite Bond Index, which had a market return of 3.99% pa.

Investment Strategy

Our investment strategy for the Primary Portfolio was to continue to hold the assets to maturity and generate income streams.

Growth Portfolio

The Growth Portfolio invests in the Indexed Australian Shares Sector Trust managed by TCorp, which in turn invests in the share market. The Portfolio has the objective of achieving capital growth over the medium to long term. The units in the Growth Portfolio are not capital guaranteed. The price of the units fluctuates weekly, depending on the net market value of the shares held by the Trust.

The Portfolio had a return of 27.85% for the year (23.16% for 2005/06). The Portfolio benchmarks against the ASX200 Accumulation Index. The benchmark return was 28.66% (23.93% for 2005/06).

Capital Growth Portfolio Performance:

21.48%

26.17%23.16%

27.85%

2003-04 2004-05 2005-06 2006-07


S&P/ASX 200

Indexed Australian Share Portfolio

Listed Properties9.70%

Industrials9.88%

Consumer Staple6.48%

Energy5.03%

Consumer Discretionary5.87%

Health Care2.69%

Financials33.11%

Info Technology0.57%

Utilities1.93%

Telecom Services3.82%

Materials20.72%

Other0.24%

Materials21.64%

Listed Properties9.43%

Industrials9.80%

Consumer Staple6.40%

Energy5.13%

Consumer Discretionary5.87%

Health Care2.65%

Financials32.69%

Info Technology0.55%

Utilities2.16%

Telecom Services3.68%

Our two keynote campaigns are the annual Good Will Week which we produce, and Seniors Week of which we are a major sponsor. A main objective is to build awareness of Public Trustee NSW as both the State’s largest Will-maker and leader in estate and Attorney administration.

Good Will Week 2006 Features and Results

Good Will Week is our annual community education program to raise awareness of the importance of having a professionally drafted Will. In its ninth year, the 2006 campaign theme was “Will power, you can do it”. The campaign aimed to help people overcome procrastination when it came to making or updating their Will and to help the community understand what can happen to their assets if they die intestate.

Throughout the week we:

• Encouraged people to contact Public Trustee NSW via the Branch network, and website visits to find out more about our Will-making services

• Pursued Wills appointments, including opening for a Saturday Wills Day event across Branches

• Highlighted the Public Trustee as a good corporate citizen with a community education focus

• Generated media coverage and engaged local communities in Good Will Week and its supporting activities, eg Good Will Week Workshop and the Good Will Week “Wills on Wheels” tour

A media campaign covering print, radio, television and online provided a wide range of opportunities for the public to access Good Will Week information and contact the Public Trustee.

The Good Will Week Workshop, hosted by leading psychologist, Barbara Miller, formed the lunchtime Sydney launch event on 10 October 2006. Other panel members included Public Trustee Peter Whitehead and from Variety, the Children’s Charity, Glenn Wheeler and Maria Venuti. The workshop was attended by over 180 people and provided information about procrastination including its causes and how to overcome it to lead a happier and more fulfilled life.

Community outreach was achieved with the “Wills on Wheels” tour visiting the Hunter, Central Coast and north-west Sydney regions. A Saturday Will-making Day was conducted, as well as other Branch events.

Good Will Week partnered with Variety, the Children’s Charity, to provide cross-promotional opportunities, with the arrangement based on our pledge to donate one dollar to the charity for every Will made during the 2006/07 year.

There was a 34% increase in visitors to the Good Will Week website compared to 2005. Additionally, the value of unpaid media coverage was over $905,000, an increase of 40% on 2005.

Good Will Week has now generated over $5.65 million of unpaid media coverage in the last eight years and consolidates our position as an independent and experienced professional and authority in the field of Will-making. The campaign continues to encourage people to protect their assets by making a Will and avoiding family conflict and intestacy.

Seniors Week – March 2007

We were aligned with the State Government’s Seniors Week for the eighth year running as a major sponsor.

Key events of this event are the Premier’s Gala Concerts and the Seniors Awards where our involvement is acknowledged through signage, various marketing strategies, on-site stands and promotional materials.

We were also the naming rights partner of “The Public Trustee’s TechnoSeniors’ an educational program encouraging older people to embrace the use of technology and increase their knowledge of computers, the internet, e-commerce, and other technology-focused media. TechnoSeniors’ course sessions were delivered at 47 locations across Sydney CBD, Sydney metropolitan and regional NSW.

Our message for Seniors Week 2007 urged older people to get their financial affairs in order with a professionally made Power of Attorney and Will. We offered consultations for seniors for Will-making and Power of Attorney services.

There was over $66,000 in unpaid media coverage for our involvement in Seniors Week 2007, which was a 18% increase from the 2006 campaign.

Other services and promotional events

Our partnership with the Garvan Research Foundation continued with the popular Garvan Public Seminar Series which included Public Trustee presentations, also involving the Public Trustee NSW Fellow in Elder Law, Sue Field, as a guest speaker.

To mark the Golden Jubilee Year of our Broken Hill office, the Public Trustee proudly sponsored the Public Trustee 60th Anniversary Handicap as part of the St Patrick’s race carnival. The Broken Hill office was the first Public Trustee Branch established outside of Sydney and has a long and proud history serving the local community.

The Public Trustee NSW Fellow in Elder Law, Sue Field, is actively involved in the legal issues which are affecting older persons in Australia. Over the past twelve months Sue has been part of an international researchers workshop in Vancouver, Canada on dementia and presented seminars throughout NSW to Local Government and community groups on legal and financial issues affecting older Australians. Sue has also provided training and information sessions on current issues affecting Elder Law to our staff.

Our Community Involvement



We extended our major sponsorship with the Department of Ageing, Disability and Home Care (DADHC) to include the Premier’s Christmas Gala Concerts.

A radio campaign was developed and implemented across the 12 month period. This was supported by integrated media strategies which included press, magazines, corporate materials, promotions and special events.

Direct Marketing Strategies

We are placing increased emphasis on direct marketing. Over the past year we ran 69 Branch and corporate direct mail campaigns, a significant increase on the 25 campaigns run the previous year. This year focus was to promote remote Wills Days. These campaigns aimed to extend our reach beyond that which is traditionally covered by our Branch network. This year was successful in generating over 1000 Wills and more than 150 Powers of Attorney.

We also ran 14 direct mail postcard campaigns. These generated over 2000 requests for information booklets, over 550 enquiry phone calls and over 400 requests for Wills appointments.

Electronic Marketing and Communication

The internet is increasingly being used to provide clients with an additional point of access to information and services. The Public Trustee website www.pt.nsw.gov.au is used both as a reference source and as an initial point of contact for clients. During the past year the Public Trustee has received:

• Over 910 online Will applications, of which 500 were from the Public Trustee website – an increase of over 10% on the previous year and 410 through alliance partners – a 13% decline on last year’s results

• Over 730 general enquiries through webmaster – an increase of over 4% on last year

• Over 850 deceased Will enquiries – an 18% increase on the previous year

• Over 200 applications for funds from Trust accounts – an increase of 20% from last year

Over the past year the average number of visits per month to the website exceeded 12,300 equating to over 400 site visitors per day. This is an increase of over 20% on last year.

We continued to run electronic marketing campaigns targeting potential clients whose profile indicated that they were likely to be interested in making a Will. These campaigns achieved strong response rates and proved to be cost effective.

Our Market

In May 2007 we participated in the Newspoll Omnibus research study which is conducted across a random selection of NSW respondents aged 18 and over. While results show

that 41% of people in NSW still do not have a Will, this is a decrease of 2.5% from last years figure of 43.5%. The survey also showed an increase of 6.5% in awareness of the Public Trustee across NSW indicating that educational and public awareness campaigns undertaken by the Public Trustee continue to be effective.

Results Tracking

To ensure that resources are directed to where they will provide an optimum return on investment we track response rates for marketing initiatives through our range of toll free 1300 and 1800 numbers. The ability to measure and evaluate response rates to specific campaigns and business development initiatives ensures that resources are directed to activities where they are most effective and enables us to comprehensively report on the results of activities undertaken.

Customer Opinions and Feedback

We have continued to undertake initiatives to improve our relationship with existing customers including:

• Our bi-annual customer newsletter PTConnect to our clients and stakeholders. This newsletter is now sent to 37,000 clients providing us with a platform to access our clients and stakeholders, keep them informed of our product offerings, provide them with information about changes to legislation and our services and inform them about our community based activities, such as Good Will Week and Seniors Week

• An external Service Audit was conducted across all Branches and benchmarked against the previous year. client satisfaction with our telephone service was 68% (up 6% on June 2006) and 76% with face-to-face service (same as 2006)

• Public Trustee NSW has benchmarked indicators of customer satisfaction which are researched annually. The research conducted in June 2007 resulted in a Customer Satisfaction Index (CSI) of 73% compared to 2006 (77%) and the Process Improvement Satisfaction Index (PISI) decreased to 66% from 70% in 2006

Two Branches had a significant lowering effect on these indices. These Branches have managed ongoing challenges during the year and these are being specifically addressed to improve performance in 2007/08.

All Branches excluding the above two Branches returned a CSI of 76% and a PISI of 70%, which demonstrated a consistently strong client satisfaction level in line with 2005.

Areas where performance did not rate as well overall are targeted for improvement in 2007/08. Communication with clients is highlighted and the Communications Plans are being revised. Staff training in this area remains our key focus.


Two Best Practice Communications training courses were delivered to receptionists, switchboard staff, legal and other secretaries during 2006/07. A further two training courses were conducted for business centre staff in the first phase of the service delivery model implementation to improve business development and client service skills.

Another important measurement in meeting client needs is the level of customer complaints and commendations:

• 84 complaints were reported (the same as last year), of which 26 (31%) justified corrective action. (Last year 24, 29% of total, justified corrective action)

• 123 voluntary commendations were received from satisfied clients, up from 93 last year

• Over the next year we will be initiating ongoing client satisfaction surveys which will encompass our Wills clients and expand our survey representation of beneficiaries 2001/02

282

508

915

1236

14511561

2002/03 2003/04 2004/05 2005/06 2006/07

Monthly Average Enquiry Phone Calls

0

200

400

600

800

1000

1200

1400

1600

1800

1300 Number Media Prompted Calls

1253

727856

963

1288

786

1034 1081 1136 1116

1817

1237

768

9291039

12031294

1917

1303

1073

1249 1256

2675

1574

973

1245

13591484

2061

1325

0

500

1000

1500

2000

2500

3000

Nov-

03De

c-03

Jan-

04Fe

b-04

Mar-06

Mar-05

Jan-

06

Jan-

05

Feb-

06

Feb-

05

Mar-04

Apr-0

6

Apr-0

5

Apr-0

4

May-0

6

May-0

5

May-0

4

Jun-

06Ju

l-06

Aug-

06Se

p-06

Oct-0

6No

v-06

Dec-

06Ja

n-07

Feb-

07Mar-

07Ap

r-07

May-0

7Ju

n-07

Jun-

05

Jun-

04

Jul-0

5

Jul-0

4

Aug-

05

Aug-

04

Sep-

05

Sep-

04

Oct-0

5

Oct-0

4

Nov-

05

Nov-

04

Dec-

05

Dec-

04

1783

1541

2065

1574

1084

1254

1566

1808

1406

2374

1482

1134

904

1366


Our Financial PerformanceThe impact of our Client Services and Business Development

Financial PerformancePTNSW is a financially self-supporting trading enterprise. Revenue is derived from the commission and fees levied against individual estates, Trusts and Agency matters.

High Level Results

• The accounting profit was $16.43m, an increase over budget by $15.02m, mainly due to factors outlined under the topic of Budget Discussion (page 24)

(1) Surplus/(Deficit) from Operational Activities excludes actuarial gains/losses on Superannuation and unrealised gains/losses in market value of financial assets.

(2) Surplus/(Deficit) from Ordinary Activities includes actuarial gains/losses on Superannuation and unrealised gains/losses in market value of financial assets.

Operational Financial Trends

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2001Actual

2002Actual

2003Actual

2004Actual

2005Actual

2006Actual

2007Actual

2008Budget

Thou

sand

s

Opening Equity

Surplus/(Deficit) from Operational Activities (1)

Accounting Financial Trends

-10,000

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2001Actual

2002Actual

2003Actual

2004Actual

2005Actual

2006Actual

2007Actual

2008Budget

Thou

sand

s

Opening Equity

Surplus/(Deficit) from Ordinary Activities (2)

• Operational profit was $8.95m, an increase of $7.54m over budget. After tax equivalents, our dividend to Government was $4.46m

Financial Trends and Ratios are set out below and on page 25.

Key Strategies and Results for 2006/07

Key Strategy Expected Result Result Achieved

Optimise revenue collection Sound financial base for business sustainability

Operational revenue was over budget by $4.91m – up 14%

Control expenditure to Budget including global saving target

Sound financial base for business sustainability

Operational expenditure was under budget by $2.63m – a saving of 8%

Increase corporate knowledge on budgetary process/reporting

More efficient budgeting and financial reporting

New budget templates and guidance notes issued, and special budgets for projects and activities introduced

Manage CSO arrangement with Treasury

Transparency of cost, funding and reporting of CSOs

CSO funding obtained

Maintain adequate capital reserves noting impact of AEIFRS

Appropriate capital base to meet business needs

Reserves were reviewed by independent actuary and found to be adequate for both Trustee and corporate obligations

Manage corporate funds prudently

Appropriate capital reserves Corporate funds reviewed and quantum found to be adequate to meet current and future obligations. Liquidity, cash flows and at call access also adequate to meet Financial Services Licence requirements. Investment through NSW Treasury Corporation achieved a return of 13.79%

Maximise the corporate benefits from Finance and Funds Management Division

Better planning, reporting and asset management

Integration of Facilities management with Finance was approved, with implementation to occur in 2007/08. Options for sharing some activities with Attorney General’s Dept. are being explored

Manage assets in accordance with Treasury Guidelines

Better information for planning and reporting

Asset management outsourced to Attorney General’s Dept., and incorporated into their Total Asset Management plans

Provide IT assets which meet business needs

Business needs and budget planning

Began implementation of upgrade to Broadband data network communications to all Branches

Achieved pre-certification to ISO 27001 with expectation of full certification in 2007/8

Achieved availability of 99.93% across all business ICT systems



Key Strategies for 2007/08

Key Strategy Expected Result

Optimise revenue collection Improved cash flows and revenue earnings

Control expenditure to Budget including achievement of Efficiency Dividend

Savings against budget

Increase corporate knowledge on budgetaryprocess/reporting

Improved planning and budgetary control

Approval of Regulatory Impact Statement – pricing our products and services

Sound financial base for business sustainability

Our New Business Results

• 1,807 grants of administration for deceased estates were obtained, 23 less than last year

• Of the total applications, 557, at a total value of $11.82m, were for matters with a value of less than $50,000 and 1,250, at a value of $484.7m were for matters over $50,000

• Average values of estates rose to $274,799 from $269,813 last year

• The total value of grants of administration was $496.6m, up from $493.8m the previous year, due to an increase in average values

Volume and Value Targets for our Core business products

Volume % Value ($) %

Target Result Vs LY 2006 Target Result Vs LY 2006

Estates 1750 1807 3.26 450m 496.6m 10.35

Trusts 900 857 -4.78 55m 56.2m 2.15

Powers of Attorney 180 105 -41.67 40m 39.5m -1.25

Wills 11250 11513 2.33 N/A N/A N/A


Performance of our Products

Trust numbers rose from 844 last year to 857 indicating that tort law reform appears to have stabilised. Power of Attorney numbers decreased from last year due to a rise in interest rates in competing products. Dormant Powers of Attorney increased to 1,759 up from 1,674 last year. Wills exceeded target (by 2.33%) and were 4.6% up on last year. The number of clients revoking their Wills increased by 251 going against a trend from recent years. There were 6 new Agency matters (where we hold funds on behalf of organisations) with a value of $1.4m. These have been included in Powers of Attorney in the previous table.

Our Business Challenge

The volume of work received reflects the decline in both Wills made during the 1990’s and the referral of Trusts. Will numbers stabilised at the end of the 1990’s and have begun to increase which is reflected in the new estate numbers. This needs to continue and the evidence to date is mixed. We continue to focus on attracting and retaining Will clients but are also focusing our efforts on the referral of estates from existing executors, expanding the type of Trusts we offer and increasing our Power of Attorney business.

We need to be flexible in our resource allocation between our Branches and ensure our pricing not only remains competitive but provides value for money. Our two major projects, remodelling our Branch network and pricing review, are key strategies to make sure we remain viable and provide excellent access to our clients.

Pricing our Products and Services

Public Trustee NSW needs to meet its obligations as a self-funding Agency operating within a commercial framework. While low value estates and Trusts are partially funded by NSW Treasury under community service obligation payments, the overall pricing structure still needs to be set to enable recovery of the costs of providing services.

If the Public Trustee is to continue to compete in the highly competitive Trustee and deceased estate market, it is important to ensure that the Public Trustee’s fees maintain industry parity and include CPI increases. Public Trustee’s fees are set by regulation, and a new regulation is being sought for introduction in January 2008. The last review was in 2001.

Budget Commentary

Details of the Revenue and Expenditure Budget in comparison with 2006/07 Actual results are in Table 3 on page 26, together with the 2007/08 Budget.

We had planned for a surplus of $1.41m for 2006/07. The actual result was a surplus of $16.43m before Income Tax Equivalents.

Our operating surplus was $8.95m which was higher than estimated, for the reasons discussed further on.

Revenue Budget & Results

Our revenue budget was set based on trends of previous years, business level predictions, and changes in regulated fees.

New estate and Trusts levels were in line with predictions, achieved through successful marketing campaigns and staff training, with values slightly higher. Consequently, the revenues derived were as expected. The changes in regulated fees did not arise due to deferral to the 2007/08 year, leaving a shortfall in Common Fund management fees. Investment revenue was greater than expected due to a large distribution from the NSW Treasury Corporation Hour-Glass Long Term growth facility.

In summary:

• Commission & Fees – over budget by $1.38m (6%)

• Common fund management fees – under budget by $1.55m (22%)

• Investment revenue – over budget by $4.93m (266%)

We received funding of $2.48m from NSW Treasury for our community service obligations in 2007.

Total operational revenue was $39m, being 14% above budget. Other revenue included a gain on Superannuation of $8.12m (due to a change in the discount rate), and an unrealised loss from revaluation of financial assets of $0.64m. These amounts were not included in the 2006/07 budget.

Expenditure Budget & Results

Our expenditure budget provided for award increases in personnel services costs and operating costs, with maintenance and depreciation expenses being held at previous budget levels. Included was the need to generate an efficiency dividend for NSW Treasury of $514,000.

Personnel service costs before super adjustments were below budget, due to some positions not being filled while we were implementing the revised Branch structure. General operating costs were well contained overall and gave rise to savings. We achieved our aim of containing both maintenance and depreciation expenses, and generated small savings by review of new software maintenance costs and re-allocation of some capital program items.

In summary:

• Personnel Services – below budget by $1.77m (8%)

• Operating costs – below budget by $406k (6%)

• Maintenance expenses – below budget by $59k (6%)

• Depreciation – below budget by $371k (18%)

Total operational expense was $30m, being 8% below budget, enabling us to achieve our efficiency savings.

AEIFRS AEIFRS AGAAP AGAAP AGAAP AGAAP

2007 2006 2005 2004 2003 2002

Commission & Fees (1) $26.17m $25.27m $25.58m $26.67m $24.99m $21.77m

Surplus (Deficit) from Ordinary Activities $16.43m $22.37m $5.37m $6.46m $0.10m ($4.67m)

Income Tax Equivalent $2.73m $1.49m $1.21m $2.25m

Dividend to NSW Treasury $4.46m $2.43m $1.97m $3.67m

Asset Revaluation Reserve $12.57m $11.16m $11.68m $3.36m

Retained Earnings $51.56m $42.32m $40.86m $38.67m $35.60m $35.50m

Total Equity $64.13m $53.44m $52.54m $42.02m $35.60m $35.50m

Current Ratio 0.36 0.40 0.65 2.39 3.22 6.5

Return on Capital Employed 24.68% 36.06% 7.96% 15.80% 0.20% -10.06%

Return on Opening Equity 30.74% 65.95% 12.80% 25.39% 0.28% -11.64%

Efficiency Ratio (2) $100,646 $90,083 $88,586 $94,244 $87,677 $78,465

Investment Returns

Hour-Glass Long Term Growth Facility 13.79% 16.87% 17.99% n/a n/a n/a

Benchmark – Strategic Asset Allocation Weighted Index

14.76% 15.90% 12.95% n/a n/a n/a

(1) PTNSW waives, reduces or foregoes commission and fees in matters for reasons of hardship, on certain property passing to the spouse of the deceased, because the value of the matter does not warrant the fee to be charged or due to the special circumstances of the individual matter. Commission and fees waived, reduced or foregone in 2007 is estimated at $1,010, 040 ($959,317 for 2006).

(2) Efficiency Ratio represents the Commission and Fees earned per FTE (Full Time Equivalent) employee. FTE was 260.01 for 2007.

Table 2 Financial Trends and Ratios



2006/07Budget

$000

2006/07Actual$000

%Increase

(Decrease)

2007/08Budget

$000

Income

Estate and Trust

- Commission 17,840 19,370 8.58 18,518

- Fees 4,468 4,319 (3.33) 4,419

Investment Revenue 1,852 6,778 265.98 2,093

Recoups of Postage Telephone & Photocopying charges 357 335 (6.16) 358

Common Fund

- Management Fee 7,091 5,546 (21.79) 7,268

Community Service Obligations 2,300 2,480 7.83 2,300

Other 186 175 (5.91) 185

Gain on Sale Non-current Assets 0 0 0 0

34,094 39,003 14.40 35,141

Expenditure

Employee Related Expenses 314 290 (7.64) 309

Personnel Services 22,738 20,970 (7.78) 23,109

Operating Lease Rentals 1,353 1,463 8.13 1,085

Building & Equipment Maintenance 1,049 990 (5.62) 865

Supplies 284 360 26.76 312

Gas and Electricity 150 206 37.33 175

Postal and Telephone 841 702 (16.53) 846

Travel, Subsistence and Freight 180 133 (26.11) 180

Insurance 101 78 (22.77) 102

Internal Audit Fees 100 69 (31.00) 100

Audit of the Financial Statements 150 146 (2.67) 150

Consultancy Fees 150 96 (36.00) 441

Fees for Services 1,431 1,138 (20.48) 1,762

Training 275 88 (68.00) 221

Advertising, Sponsorship & Publicity 1,430 1,531 7.06 1,583

General Expenses 116 146 25.86 157

Depreciation & Amortisation 2,021 1,649 (18.41) 2,117

32,683 30,055 (8.04) 33,514

Operating Result before Adjustments 1,411 8,948 534.16 1,627

Change in Market Value of Financial Assets 0 (638) 0 2,018

Superannuation Adjustment 0 8,118 0 0

0 7,480 0 2,018

Accounting Profit before Distribution 1,411 16,428 1,064.28 3,645

Income Tax Equivalent 423 2,733 546.10 488

Profit after Income Tax Equivalent 988 13,695 1,286.13 3,157

Dividend to Consolidated Fund 692 4,463 544.94 797

Retained Profits 296 9,232 3,018.92 2,360

Table 3 Recurrent Revenue & Expenditure Budget


Table 4 Capital Expenditure Budget

2006/07Budget

$000

2006/07Actual$000

%Increase

(Decrease)

2007/08Budget

$000

Building Fixtures & Fittings 998 716 (28.29) 300

Leasehold Improvements 17 24 42.18 0

Office Equipment 45 0 (100.00) 70

Furniture/Furnishings 112 10 (91.14) 445

Computer Hardware 1,233 252 (79.55) 887

Computer Software 567 86 (84.81) 279

2,972 1,088 (63.39) 1,981

2007/08 Revenue and Expenditure Budget

Next year’s expenditure budget has been based on operational activities after considering trends of previous years, proposals to change methods of service delivery, and business predictions. We have budgeted for increases in our regulated fees as from January 2008, however this is subject to Government approval. We have not budgeted for unusual items such as changes in discount rates as they affect assets and/or liabilities in superannuation schemes. In summary, we are:

• Budgeting for an operating surplus of $1.63m, from which we will pay Income Tax equivalents of $488k, and a dividend to Government of $797k

• Anticipating total operational revenue to decrease by $3.86m to $35.14m. This is on the basis that the exceptionally high distribution received from investments of $6.64m will not continue into 07/08 financial year. Revenue also includes a CSO payment from NSW Treasury of $2.30m

• Expecting total expenditure to increase by $3.46m (essentially for personnel service costs, depreciation and other operating costs), while again endeavouring to hold maintenance expenditure at 2006/07 levels

Capital Budget Commentary

Details of our 2006/07 Capital expenditure budget compared to actual expense, together with the 2007/08 budget are shown in Table 4. We had provided an amount of $2.97m primarily towards building renovations and computer hardware and software purchases.

Capital Budget & Results

Head office building renovation projects were deferred, with funds being reallocated to urgently needed replacement of lifts. Computer hardware purchases to replace leased items were delayed pending the roll-out and completion of a new front and back office structure for Branches, while other IT projects were reviewed in terms of business requirements and system compatibility. Those IT projects were put on hold temporarily, and their budgets will be carried over to 2007/08.


Our Executive Team Public TrusteePeter Whitehead – BA LLB (UNSW)Commissioner of Dormant FundsEx-Officio Trustee and Honorary Treasurer of ANZAC Memorial Trust

General Manager Client Services – Deputy Public TrusteeAnthony Steinmetz – Dip. Law (SAB) aimmService Delivery, Legal, Branch and Agency networks, Taxation, Client Portfolio Services, Trust Accounts

General Counsel – Deputy Public TrusteeAnthony Lentini – B.Ec (USYD) LLB (UTS)Corporate and Trustee Compliance including Legal Counsel, Risk Management, Records Management

General Manager Finance and Funds ManagementChris Rawlings – B.Bus.CPA.ACIS.ACIMCorporate Finance and Funds Management

General Manager Business DevelopmentBarbara Cromie – BA Dip.IATACorporate Communications, Business Development and Marketing

Corporate ManagementThe Public Trustee is the Chief Executive Officer of Public Trustee NSW and we have the following Divisions: Client Services, Business Development, Financial and Strategic Services, and General Counsel.

The Executive Committee works similar to a Board in that General Managers of each Division report monthly on budget performance, Key Result Areas (KRA) performance to the Business Plan, and on new or ongoing projects. Key management reports are generated by a software program working from a data warehouse from financial, human resources and client systems.

An Investment Committee meets monthly to review investment performance, recommend interest rates and deal with associated issues such as compliance, asset allocation and external manager relationships.

Other key committees are: Audit and Risk Management; Joint Consultative Committee; Occupational Health and Safety; and Information Management and Technology. Further committees are detailed in Appendix 5.

We have the following Plans at the corporate level

• Business Plan

• Marketing Plan

Our Management• Risk Management Plan

• Business Continuity Plan

• IT Disaster Recovery Plan

• Human Resources Strategic Plan

• Information Management and Technology Strategic Plan

• Total Asset Management Plan (included with Attorney General’s Department overall Plan)

• Waste Management Plan

• Privacy Management Plan

The Plans are prepared following staff input at organised workshops. These plans are used to prepare Division and Branch Plans to make sure there is a corporate focus for both objectives and outcomes.

The Public Trustee’s charter and business aims are confirmed and agreed on each year by a Statement of Business Intent agreed with the Attorney General and the Treasurer.

Our Annual Report is our way of reporting to Parliament through the Attorney General. We report quarterly to the Attorney General and to Treasury on our financial performance linking the results of our Business Plan to our Statement of Business Intent.

Our StaffKey Strategies 2006/07

• % of staff trained in technical, product and industry knowledge in current and new procedures including Chameleon Will product and Wills accreditation

• Continue programming and delivery of specialist training by University of Western Sydney

• Increase the number of staff receiving Community Language Allowance

• Train managers/supervisors in selection committee responsibilities

• Implement AGD performance management system

• New staff trained in disability awareness

• Revise the recruitment information kits

Key Results 2006/07

• Staff continued the technical training program with 73.5% trained in technical, product and industry knowledge including Wills accreditation and the new Succession Act

• Elder Law seminars delivered by University of Western Sydney

28


• Several managers/supervisors attended selection committee training

• Head Office managers were trained in Performance Planning & Development; however roll-out of the electronic performance management system did not proceed due to technical difficulties

• Reviewed the Human Resources Strategic Plan, incorporating succession planning and recruitment strategies

• 95% of all staff attended developmental training including fraud awareness and “Respect” briefings

Key Strategies 2007/08

• Identify and improve areas of practice requiring development of expertise, knowledge and facilities

• Assist Culturally and Linguistic Diverse (CALD) Communities to understand PTNSW services

• Ensure people with a disability have full access to PTNSW

• Upgrade corporate recruitment information, review position descriptions, and train staff in selection techniques

• Review three-year technical training program

• Provide best governance for internal training

• Provide staff with exposure to external management courses

• Provide staff feedback on personal performance and development

• Complete training and provide information kit to foster culture of dignity at work

• Provide a safe workplace by continuing to implement recommendations arising out of OH&S Gap Analysis and workplace refit program

• Create a more effective governance framework for Shared Corporate Services

Major Equal Employment Opportunity Achievements 2006/07

• Number of staff receiving Community Language Allowance Scheme (CLAS) increased from 2 to 7 staff

• 10.5% of staff work part-time

• Two groups of staff attended disability awareness training

Major Equal Employment Opportunity Strategies 2007/08

• All traineeship positions will be advertised in the Koori Mail

• Staff from the EEO target groups will continue to be encouraged to attend management and leadership programs to assist their transition to management positions

• The Community Language Allowance Program will continue to be expanded across PTNSW

Key Issues

A consistent need is for our staff to receive relevant training to match the competencies required in their work, making the ongoing development of competency based training an integral requirement for staff.

Human Resources policies are central to committed and fair work practices. We have the benefit of access to the Attorney General’s Infolink site on the intranet which hosts a range of resources for our staff. We have a Service Level Agreement with Attorney General’s for the provision of a number of services as a shared corporate service initiative.

Succession planning is a high priority as we have an ageing workforce with many experienced staff retiring or close to retirement. Initiatives this year included 6 staff participating in the Leadership Assessment program with a continuing focus on the Traineeship and Knowledge Management Programs.

Staff Management

All new staff to Public Trustee are made aware of the following policies:

• Code of Conduct

• Sick Leave Policy

• Ethical Work Practices Policy

• Bullying, Harassment & Sexual Harrassment Policy

• Grievance Procedures

• OH&S Policy

• Flexible Work Practices Policy

• Acceptable Use of Information and Communications Technology

Staff Movements

As at 30 June 2007 we employed 278 staff which was 29 less than the previous year. Of this number 28 were part-time staff. The equivalent full-time staff number was 264 as compared to 280.52 the previous year. Staff turnover within PTNSW increased from 7.71% to 9.44% in 2006/07. Staff figures are set out in Appendix 1.


– Respect Briefings – Advanced Distributions, Examining – Marketing Workshop – Financial Services Reform – Business Writing – Taxation Workshop – Presentation Skills

Information TechnologyKey Strategies 2006/07 Business Plan

Key Strategies

• Continue to pursue opportunities in Shared Corporate Services

• Branch network communications upgrade to Broadband

• Further implementation of the ITIL methodology

• Further development of PTbis

• Rollout of Chameleon to remaining Branch offices

• Continue enhancement of TEAMS as a core business system

• Complete the rollout of TRIM

• Certification to the International Standard for information security ISO/IEC 27001

Key Results 2006/07

Key Results

• Migrated the Payroll System to a Shared Corporate Service environment, with consequent cost savings in hardware, software and support costs

• Commenced the upgrade of the Branch IT network Communications to the Government Broadband network

• Implemented an ITIL Change Management system to provide enhanced control of technical changes to PTNSW IT systems

• Progressed the implementation of the corporate Business Intelligence system PTbis

• Progressed the rollout of the Chameleon system to Branch offices

• Developed and implemented two new versions of the TEAMS system to provide enhanced functionality to Client Services staff

• Completed a review of the TRIM system to identify opportunities for enhanced use and further implementation

• Achieved pre-certification to ISO/IEC 27001

Staff Training And DevelopmentCompetency Based Training

We continue to use the Business Administration and the Financial Services Industry Training Package (Personal Trustee Industry). As a result more relevant core business training is now competency based. This means that Trust staff are now able to obtain a nationally recognised qualification through the attainment of various competencies, ranging from Certificate III to Certificate IV. On completion of Certificate IV staff may be able to progress to a Diploma level qualification.

In the year to June 2007, 6 trainees achieved the Certificate III in Business Administration and Financial Services.

Highlights

• 264 staff out of 277 attended either developmental or technical training

• 271 days of training were provided to staff

• During the year, 6 new trainees attended courses in Trust and estate administration, customer service, ethical practice, computer applications, OH&S and Anti-Discrimination

• 17 Fraud Awareness workshops were held through out the year as part of our internal audit compliance program

• 15 training courses were held on the new Succession Act for all Client Services Staff

• Advanced Distributions/Examining training sessions were conducted

Learning and Development

• All trainees receive on-the-job assessments to monitor progress and provide any additional training required

• Internal courses attended by other staff were: – On-line entitlement and distribution – Will Accreditation – Trusts – Estate Administration 1 and 2 – Intestate Proofs and Next of Kin – Testamentary Trusts – Powers of Attorney – Dealing with Difficult Clients – Securities – Taxation – Induction Course (which incorporates Customer

Service, Ethical Practices, OH&S, Disability Awareness and Risk Management)

– Succession – Fraud Awareness



Key Strategies

• Continue to pursue opportunities in Shared Corporate Services

• Replace all corporate desktop PCs to provide increased speed and reliability for corporate business systems

• Implement new network infrastructure hardware within Head Office and at all Branches

• Upgrade the Storage Area Network to provide increased data storage capacity and enhanced performance for corporate business systems

• Complete the Branch network communications upgrade to Broadband to provide enhanced system performance at all Branches

• Further implementation of the ITIL methodology

• Further development of PTbis

• Continue enhancement of TEAMS as a core business system

• Complete the rollout of Chameleon to all Branches

• Extend the use of the TRIM system to remaining business areas

• Complete the certification of the IS unit to ISO/IEC 27001

• Upgrade and enhance the IT Disaster Recovery Centre

IT Service Delivery

IT service availability was maintained to meet and exceed agreed targets with uptime during business hours averaging an excellent 99.93% across all business systems, and 99.89% for the core business system TEAMS.

Broadband IT Network

Options for upgrading the speed and capacity of the current inter-Branch IT network were reviewed during the year, resulting in the decision to implement the Government Broadband Service at all PTNSW offices. This will provide Branch staff with significantly faster access to corporate data and improved response times for all business systems. Implementation has begun and is expected to be completed during the first quarter of next year.

Hardware Refresh

Fileservers, PCs and other IT hardware is replaced with updated units according to an agreed equipment lifecycle over a four year period. This ensures that our IT systems continue to be responsive, reliable and able to meet the needs of business users. This year saw the replacement of the fileservers at several Branch offices.

ITIL – IT Service Management Methodology

The provision of Information Services to the business continues to be realigned to the industry best practice for IT Service Delivery, ITIL. This year saw the introduction of a new Change Management system to provide enhanced control over technical changes to IT systems and infrastructure.

Core Business System

Two new versions of the core business system, TEAMS, were completed and implemented, providing enhanced functionality and processing improvements to the business.

IT Security

Internet firewall and intruder detection systems operate with 24 x 7 monitoring and alerting to protect the corporate network from external security threats. Internet e-mail and web content filtering systems have been implemented to prevent exposure to harmful or inappropriate material. New systems to facilitate the installation of security patches and to enhance the control of equipment connected to desktop PCs are currently being implemented. Once again, no downtime was experienced this year as a result of any security incident or virus.

Disaster Recovery Plan

A Disaster Recovery unit is maintained to ensure that in the event of a disaster at our main computer centre critical business systems will continue to operate, thus maintaining our high level of service and reputation in the community. Operational effectiveness of the unit is continually upgraded and tested, and a significant upgrade is planned to enhance our ability to meet new requirements specified in our Business Continuity Plan.


Governance

Key Strategies in our 2006/07 Business Plan

• Test key elements of our Business Continuity Plan

• Continue our conversion to TRIM records management and complete further aspects of State Records Act compliance

• Complete certification to the International Standard for Information Security ISO/IEC 27001

Key Results 2006/07

• Key elements of Business Continuity Plan tested

• Continued implementation of TRIM for administrative records and Functional Retention and Disposal Authority approved under State Records Act 1998

• Information Security Management System implemented in Information Services and Computer Room for ISO/IEC 27001 security certification


• Complete modified asset allocation of Common Fund

• Further test key elements of our Business Continuity Plan

• Further develop and maintain our Information Security Management System

• Continue conversion to TRIM records management

• Develop an overall Strategic Storage Plan

In 2006/07 we continued to increase the profile of our governance, risk management and general compliance. We have maintained a high level of awareness of risk management with increased awareness by greater emphasis at the corporate management level, complemented by ongoing inclusion of risk managed components in all staff induction and technical training courses.

Risk Management and Audit

Risk Management

Our Risk Management Plan addresses both operational and corporate risks. Some of the operational and corporate risks are mitigated by:

• Audit and Risk Committee which is independently chaired

• An enterprise wide approach to ongoing implementation and maturity of risk management practices

• Vigorous, annually reviewed internal audit program forboth identified Trustee risks and corporate strategic and operational risks

• Approved Fraud Control Strategy and implemented Corruption Prevention Framework

• Adoption of risk management best practice to facilitate ISO/IEC 27001 Information Security certification

• Indemnity for certain losses guaranteed by corporate reserves and Government

• Preventative maintenance programs for major plant and equipment

• Building emergency evacuation plans and drills for all Public Trustee sites

• Security system at Head Office

• Computer system contingency and disaster recovery plan

• Corporate wide Business Continuity Plan

• Guaranteed off-site computer access

• Regular testing of our air-conditioning plant

• Regular testing of Head Office fire control system

• Head Office emergency power supply

• Regular meetings of Occupational Health & Safety Committee

We endorsed an overarching Risk Management Framework, incorporating a Business Continuity Plan and this framework is being maintained and subject to review for continuous improvement and changes in industry practice, including ongoing refinement of risk assessment methodology.

Estate property and assets are protected by internal procedures and by comprehensive insurance over all estate property. Wills are protected by secure storage.

Our ComplianceProviding responsible, ethical and accountable management



Major business processes are protected by:

• Internal auditing programs which ensure that effective control systems are in place to test conformance with Trustee high risk activities and to provide reasonable assurance regarding the achievement of objectives

• External auditing to assess the adequacy of existing controls

• Fraud Control Strategy and Corruption Prevention Framework

• Information Security certification

• Approved Business Impact Analysis (BIA) and Business Continuity Plans

• Risk Management, within policy guidelines, including incorporation in the Business Planning cycle, Statement of Business Intent Risk Assessment Statement and Internal Audit Plan

The Office maintains, with Treasury Managed Fund, the following insurance policies which are reviewed annually to ensure that the level of insurance is adequate to cover the potential risk:

• Comprehensive Motor Vehicle Insurance

• Public Liability Insurance

• Property Insurance covering corporate property

• Workers Compensation Insurance

• Miscellaneous Insurance for liabilities not specifically covered

Internal Audit

Our Risk Management and Audit program ensures that effective control systems are in place and that there is reasonable assurance regarding the achievement of objectives. Throughout 2006/07 it was managed in conjunction with Deloitte, and later Walter Turnbull who assist in the risk assessment, the development and performance of the 3 year internal audit plan.

Risk Management and Audit staff assess the adequacy of existing controls and provide, where appropriate, recommendations to enhance effectiveness and efficiency of both policy and practice. Additionally, all new technical policies and practices clearly articulate the risks the policies have been developed to control.

What we did to strengthen our compliance:

• Following external review, improved our Internal Audit Trust Accounts program: report findings are given a performance/assurance rating with streamlined Executive Audit and Risk Committee reporting lines

• Continued to manage and develop our Control Self Assessment program for our core business units including the introduction of risk assessment for outdoor work

• A consequence of the ongoing use of Control Self Assessment in our client services area are continued positive trends from our internal audit reports, with a reduction in adverse findings and lessening of risks. It is intended to become a model for introduction throughout PTNSW as a tool for better risk management and increased risk management awareness by staff

• Our Audit and Risk Committee met 4 times throughout this year with its agenda covering internal audit program, external audit, major projects and risk management. Our external and internal auditors and the Audit Office of NSW are permanent invitees, as is the Public Trustee

• Attending the 4 meetings held were the Protective Commissioner and Public Guardian as independant Chair, Ken Gabb (1) and Mark Orr (3); Chris Rawlings (4); Barbara Cromie (4); Anthony Steinmetz (3); Anthony Lentini (2)

• The establishment and maintenance and routine status reporting to the Executive Committee and Audit and Risk Committee of a ‘Correction Actions Issue tracker’ that allows monitoring of actions flowing from all internal audit reports

• Continued use of data mining techniques to determine possible areas of control breakdown in higher risk areas as a means to focus audit resources

• Following from the previous year’s revised Fraud Control policy and Corruption Prevention Framework a number of initiatives were performed, including external review of the Framework against the Audit Office of NSW ‘ten attributes’, implementation office wide of the Audit Office of NSW ‘Fraud Control Improvement Kit’ staff survey, analysis of the staff survey and subsequently fraud awareness training for all PTNSW staff. The result of the fraud awareness survey amongst PTNSW staff indicated a good understanding of the Public Trustee’s fraud control processes

What we achieved:

• Completion of annual corporate wide Risk Assessment Program with its findings being used in Business Planning and Audit Program and assisting in the attainment of Information Security Certification

• Completion of a business impact analysis and approval of corporate wide micro business continuity plans and


the conducting of scenario testing of key elements of Business Continuity Plans

• Completion of a review of the Control Self Assessment program, that identified the positive effect on internal audits used to manage and report on identified high operational risk in our client services area

• Ongoing incorporation of risk specific awareness sessions in all new employee induction training, and in all Trust technical training provided throughout the organisation

• Completion of the planned audit program, including the Trust account internal audit program, a number of special investigations and key corporate activity reviews to provide assurance of effective control of identified risks

• Incorporation of risk management as a means of assessing and controlling identified OH&S hazards, the risk rating determining the speed of urgency of corrective action and appropriate level of control, noting all hazards are recorded in a register for their management

Key Compliance Programs

External Governance and Compliance for business performance

Being a public sector organisation, we are required to comply with Government policies and reporting requirements and do so under the direction of our General Counsel.

ISO/IEC 27001

An Information Security Management System has been implemented, supported by an enhanced set of security-related Information Services Policies and operating procedures. These have played a significant role in enhancing the security and professionalism of the provision of IT Services to the business. Pre-certification has been achieved with full certification of the IS unit expected early next financial year.

GST Compliance

Corporate and Trustee responsibilities for GST compliance continued to be met.

Privacy and Personal Information Protection Act 1998

A Privacy Management Plan was prepared and filed with Privacy NSW in July 2000 following discussions with Privacy NSW and a review of our practices in light of the Privacy Principles.

We have prepared privacy information sheets for each of our services. We take account of the Privacy Principles in all areas of our operations.

No applications for review were lodged with PTNSW under the Act.

Health Records and Information Privacy Act 2002

This legislation, relating to health information as a specific type of personal information, come into operation in July 2004. Our Health Privacy Principles Policy 2005 incorporates the Principles enshrined in the legislation and guidelines as to their operation.

Trustee Investment

Implementation of a client financial planning cycle to meet the ‘Prudent Person Principles’, now incorporated in the Trustee Act, has continued, thus enabling us to fully comply with this legislation.

Records Management

Our Records Management Improvement Plan is being implemented. The computer based solution TRIM, which includes Electronic Document and E-mail Management, will improve the capture, retention, retrieval and proper disposal of all our paper and electronic records. A new Functional Retention and Disposal Authority was approved under the State Records Act 1998 in February and with its implementation satisfies the requirements of Premier’s Memorandum M2007-8 Efficient and Cost Effective Management of Records.

Financial Services Reform Act 2001

This Commonwealth legislation, now incorporated into the Corporations Act 2001, has relevance for several of our areas of operation, most noticeably in respect of our Attorney Services and Damages Trusts Clients. The basic thrust of the Act is the requirement to hold a licence to provide certain financial services.

A licence is held by PTNSW and we have met our statutory obligations.

NSW Government Women’s Action PlanPTNSW is committed to the NSW Government Action Plan for Women and will continue to identify and remove structural barriers to the employment of women at all levels. There are no Government policy initiatives that specifically relate to women’s interest in the particular area of the operation of the Public Trustee. However, the following can be reported:

• 50% of Leadership Assessment Program participants were women


• 6 women attended the Springboard Women’s Development Program

• 51% of all Higher Duties Allowance Opportunities were provided to women

• 6 women out of 18 staff who completed the UNE Diploma of Business (Frontline Management) have since been promoted to supervisory/managerial positions

• 42% of promotions were won by women

Disability Services Plan

Our Disability Services Plan was written and lodged previously with the Department of Ageing, Disability & Home Care. Under this Plan PTNSW has achieved the following:

• Home visits to clients who are unable to get to a Branch Office

• Provision of text-only transcripts on our Internet site

• Provision of interpreter/Auslan translator to clients and staff as required

Application of Principles of Multiculturalism

We support and promote the four principles of multiculturalism enunciated in the Community Relations Commission and Principles of Multiculturalism Act 2000. We are committed to achieving our EAPS obligations and to continually seeking ways to promote and implement the principles. We:

• Produce brochures in nine languages which are accessible through the internet (see Appendix 2)

• Had, at 30 June 2007, 19.5% of staff whose language first spoken as a child was not English

• Have a Branch structure with representation in areas containing people from different ethnic groups

• Provide guest speakers to address ethnic groups on the functions and operations of PTNSW

• In 2006/07 undertook accreditation for 7 staff as interpreters under the Community Language Allowance Scheme (CLAS)

• Provide bi-lingual staff and interpreters to clients

• Place 8% of total press advertising and 6.5% of electronic media in the ethnic media

Occupational Health and Safety• The Occupational Health and Safety Committee met

regularly during the year, to provide consultation and continues to actively monitor workplace safety for clients and staff

• The Occupational Health and Safety Committee has continued its schedule of work place hazard identification visits and all Branches and Head Office inspected

• Occupational Health and Safety Plan implementation nearing completion; completed the upgrade and installation of Fire Emergency Evacuation Services

• Properties occupied by the office are regularly inspected to maintain standards and to allow maintenance strategies to be achieved

Occupational Health and Safety Performance Indicators

Over the past 4 years our performance in both Workers Compensation and Motor Vehicle claims has continued to be stable, with very few incidents or claims.

Workers Compensation claims have averaged 5.75 over the last four years. There were 3 claims in 2006/07 (a decrease from 7 in 2005/06) and the average cost per claim was $6,476 in 2006/07 (an increase from $1,451 in 2005/06). In 2006/07 there was 1 claim lodged for lifting, 1 for slip and 1 for repetitive strain injury. Apart from claims, the following incidents were reported, 13 Trips and Falls, 2 Motor Vehicle, 3 Commuting, 5 Lifting and 2 RSI.

Motor Vehicle claims over the past 4 years have continued to average around 2 per year. There were 3 Motor Vehicle claims in 2006/07 (the same number as 2005/06) with an average cost of $2,433 (a slight decrease in average cost on 2005/06).

Waste Reduction and Purchasing Policy and Energy Management

E-Procurement

Our stores-on-line and print-on-line arrangements with Corporate Express continue to operate successfully.

Together with general office stationery, all our envelopes, file covers, letterhead and other general corporate stationary items are now ordered on-line delivering an efficient, cost effective solution.

Reducing the Generation of Waste

We have reduced the use of paper by:

• Making brochures and other documents commonly provided to the general public available on our Internet site

• Utilising our Intranet site for Electronic Self Service (on-line applications for Leave and Training courses, and


Salary Details) and publishing such things as Technical Directions, Policies, Guidelines, Procedures, Forms, Strategic Plans and Social Club News and Events

• Using our Intranet to communicate our Key Performance Indicators to staff and provide access to our Business Information System, PTbis

• Using e-mail for public enquiries, staff newsletters, periodic reports and meeting minutes and other documents

• Re-using redundant printed paper for internal office use

No estimate of waste avoidance is available.

Resource Recovery

Our policy on recycling is current throughout our office with plastics, glass and aluminium kept separate and recycled. Paper waste is collected fortnightly by Government contractors. At both our Head Office and Liverpool office we have installed specific commingled bins for recycling of plastics, glass and aluminium. Other sites are encouraged to comply with our policy, but as the quantity does not warrant specific arrangements they use the local council bins through their contract cleaners. All sites recycle their toner cartridges. Where appropriate we re-use paper as note pads.

No estimate of waste recovery is available.

The Use of Recycled Material

Under our on-line procurement program, we have control over the type of general stores and consumable products purchased across our office. We have in place defaults that ensure all our sites maximise our ability to purchase items identified as having recycled content or are re-cyclable, including office paper products.

Energy Performance

Our energy costs and consumption are now managed as part of the overall Energy Management program of the Attorney General’s Department.

Future refurbishment projects will factor in design layouts that improve efficiency with regard to lighting systems, air conditioning and general energy use.

Paper Waste Management by Attorney General’s Department

We have recently joined with the Attorney General’s Department in a state-wide contract for the secure destruction of paper documents. All our sites have a dedicated secure bin, which is collected either fortnightly or monthly and the

contents securely destroyed. There is now no need for documents to be shredded before disposal.

Our data on waste management is now included in the overall return by the Attorney General’s Department.

Generic Disclosures

Land Disposal

No property was disposed of during 2006/07.

Consultants

We observe Government policy on the employment of consultants, but we are exempt from reporting details by the Annual Reports (Statutory Bodies) Regulation 2005.

Freedom of Information

We have a general exemption under the Freedom of Information Act for operations as Executor, Administrator or Trustee but when enquiries are received in such matters, they are dealt with as a general enquiry and information released as assessed on a matter by matter basis.

One request for information was received and dealt with.

Industrial Relations

There were no work stoppages during the financial year. The Joint Consultative Committee met regularly during the year to resolve issues of concern.

Code of Conduct and Ethics

No amendments were made to our Code of Conduct and Ethics.

Payment of Accounts

We achieved a rate in excess of 92.12% for accounts paid on time. No complaints were recorded and no instances of penalty interest were incurred during the year. Payment performance indicates are shown in Appendix 3.

Credit Card Certification

We certify that credit card usage by officers of PTNSW has been in accordance with appropriate Government policy, Premier’s Memoranda and Treasurer’s Directions.


Financial Statements


Financial StatementsPublic Trustee NSWIncome Statement for the Year Ended 30 June 2007

2007 2006 Notes $’000 $’000REVENUES

Commission and fees 2 26,169 25,270

Management fee 3 5,546 5,193

Investment revenue 4 6,140 6,679

Other revenue 5 510 580

TOTAL REVENUES 38,365 37,722

EXPENSES

Personnel service expenses 6 12,751 6,745

Employee related expenses 7 390 267

Other operating expenses 8 7,146 6,762

Depreciation/amortisation 9 1,649 1,652

TOTAL EXPENSES 21,936 15,426

Gain on disposals 10 - 72

Profit before income tax equivalent 16,429 22,368

Income tax equivalent 11 (2,733) (1,491)

Profit after income tax equivalent 13,696 20,877

The accompanying notes form part of these financial statements


Public Trustee NSWBalance Sheet as at 30 June 2007

2007 2006 Notes $’000 $’000

CURRENT ASSETS

Cash and cash equivalents 12 2,502 3,343

Receivables 13 1,843 1,970

TOTAL CURRENT ASSETS 4,345 5,313

NON CURRENT ASSETS

Financial assets at fair value 14 44,442 44,444

Property, plant and equipment 15 24,586 22,429

Prepaid Personnel Services - superannuation contributions 16 2,549 -

Intangible assets 17 2,551 3,146

TOTAL NON CURRENT ASSETS 74,128 70,019

TOTAL ASSETS 78,473 75,332

CURRENT LIABILITIES

Payables 18 1,956 1,565

Provisions 19 9,952 11,730

Other 10 10

TOTAL CURRENT LIABILITIES 11,918 13,305

NON CURRENT LIABILITIES

Provisions 19 2,415 8,562

Other 15 26

TOTAL NON CURRENT LIABILITIES 2,430 8,588

TOTAL LIABILITIES 14,348 21,893

NET ASSETS 64,125 53,439

EQUITY

Retained earnings 20 51,557 42,324

Asset revaluation reserve 20 12,568 11,115

TOTAL EQUITY 64,125 53,439




Public Trustee NSWStatement of Changes in Equity for the Year Ended 30 June 2007

2007 2006 Notes $’000 $’000

Total equity at the beginning of the financial year 53,439 33,919

Change in accounting policy - (98)

Adjustments on adoption of AASB 132 and AASB 139 net of tax, to:

– Retained earnings - 1,660

– Reserves - (1,710)

Profit for the year 13,696 20,877

Increment on revaluation of land and buildings 15 1,453 1,223

Effect of change in accounting policy – dividend 1 (v) - (7)

Effect of change in accounting policy – commission - 14

Effect of change in accounting policy – income tax equivalent - (4)

Transactions with equity holders – dividends (4,463) (2,435)

Total equity at the end of the financial year 20 64,125 53,439




Public Trustee NSWCash Flow Statement for the Year Ended 30 June 2007

2007 2006 Notes $’000 $’000

Cash Flows from Operating Activities

Receipts from customers 35,212 33,295

Interest received 6,779 2,494

Other receipts 33 109

Payments to suppliers and employees (34,925) (28,678)

Goods and services, fringe benefits and payroll tax paid (2,042) (1,980)

Income tax equivalent paid (1,491) (1,211)

Net cash flows from operating activities 23 3,566 4,029

Cash Flows from Investing Activities

Purchases of financial assets (6,637) (2,374)

Proceeds from the sale of financial assets 6,000 2,800

Payments for property, plant and equipment (1,216) (1,593)

Payments for intangible assets (119) (152)

Proceeds from sale of property, plant and equipment 0 122

Net cash flows from investing activities (1,972) (1,197)

Cash Flow from Financing Activity

Dividend paid (2,435) (1,977)

Net cash flow from financing activity (2,435) (1,977)

Net increase / (decrease) in cash and cash equivalents (841) 855

Cash and cash equivalents at the beginning of the financial year 3,343 2,488

Cash and cash equivalents at the end of the financial year 2,502 3,343




1. Summary of Significant Accounting PoliciesThe principal accounting policies adopted in the preparation of the financial report are set out below. These have been consistently applied to all years presented unless otherwise stated.

(a) Reporting Entity

Public Trustee, as a reporting entity, is a corporation sole and is designated under Schedule 2 of the Public Finance and Audit Act 1983 as a statutory body for reporting purposes. Public Trustee is domiciled in New South Wales, Australia and its principal place of business is located at 19 O’Connell Street, Sydney 2000.

Public Trustee is a for-profit entity.

These Financial Statements have been authorised for issue by the Public Trustee on 22 October 2007.

(b) Basis of Preparation

This report is a general purpose financial report which has been prepared on an accruals basis in accordance with:

• applicable Australian Accounting Standards (which include Australian Equivalents to International Financial Reporting Standards (AEIFRS));

• other authoritative pronouncements of the Australian Accounting Standards Board (AASB);

• the requirements of the Public Finance and Audit Act 1983 and the Public Finance and Audit Regulation 2005;

• NSW Treasurer’s Directions

Where necessary, comparatives have been reclassified and repositioned to be consistent with current year disclosures except when an Australian Accounting Standard requires otherwise. Comparatives for 2006 relating to an item of superannuation as described in Note 1 (f) (iii) have not been provided.

Judgements, key assumptions and estimations that management has made are disclosed in the relevant notes to the financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity that are believed to be reasonable under the circumstances.

All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency.

(c) Statement of Compliance

The financial statements and notes comply with all Australian equivalents to International Financial Reporting Standards.

(d) Segment Reporting

Public Trustee operates in one geographical segment (New South Wales) and has a statutory charter to provide estate, Trust and asset management service to all people of New South Wales.

(e) Revenue Recognition

Revenue is measured at the fair value of the consideration or contribution received or receivable, net of GST. Additional comments regarding the accounting policies for the recognition of specific revenue items are discussed below:

(i) Commission and Fees

Commission and fees are recognised at the time charges are levied.

The rates and timing of charges levied for commission and fees receivable are governed by Regulations to the Public Trustee Act 1913. Regulation charges in respect of estates and Trusts were unchanged during the year.

The Common Fund management fee is recognised at the time charges are levied. The fee is set by regulation as a percentage of funds under management, and is reduced to the extent of any fees payable to external fund managers. There has been a change in policy as to how this revenue is recognised, details of which are set out in Note 1(v).

(ii) Investment Revenue

Investment revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

(iii) Gain or Loss on Disposal of Assets

The gain or loss on disposal or retirement of an asset is recognised in the Income Statement. The amount is determined as the difference between the sale proceeds and the carrying amount of the asset.

(iv) Community Service Obligation

Public Trustee receives funding from NSW Treasury to enable access by the community to professional executor or Will services for those with limited assets, and to enable access to professional services in management of non-commercial Trusts. The funding is recognised as revenue in the year in which it is made available by NSW Treasury.

Notes to and forming part of the Financial Statements for the Year Ended 30 June 2007.



(f) Employee Benefits

The Public Trustee is constituted as a corporation sole for the purpose of all his functions under the Public Trustee Act 1913, and is the sole employee of the entity to which this financial report relates. Employee benefits for the Public Trustee have been treated as follows:

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

Liabilities for salaries and wages (including non-monetary benefits), annual leave and paid sick leave that fall due wholly within 12 months of the reporting date are recognised as short-term employee benefits and measured at undiscounted amounts based on the amounts expected to be paid when the liabilities are settled.

Long-term annual leave that is not expected to be taken within twelve months is measured at present value in accordance with AASB 119 Employee Benefits.

Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leave taken in the future will be greater than the benefits accrued in the future.

The outstanding amounts of workers’ compensation insurance premiums and fringe benefits tax, which are consequential to employment, are recognised as liabilities and expenses where the employee benefits to which they relate have been recognised.

(ii) Long Service Leave

Long service leave is measured at present value in accordance with AASB 119 Employee Benefits. This is based on the application of certain factors (specified in NSWTC 06/09 AASB 119 ‘Employee Benefits’ Other than Superannuation) to employees with five or more years of service, using current rates of pay. These factors were determined based on an actuarial review to approximate present value.

(iii) Superannuation

Liabilities for superannuation for the entity is separately recognised as determined by Pillar Administration. A comparative figure for 2006 is not separately available, however the liability for 2006 is included in the item Personnel Services.

(g) Personnel Services

The Attorney General’s Department provides employees to the Public Trustee entity to enable the Public Trustee to carry out his functions under the Public Trustee Act 1913. The

expense and liabilities due to Attorney General’s Department are classified as “Personnel Services” in the Income Statement and Balance Sheet respectively, and are calculated by the Attorney General’s Department using the following recognition and measurement criteria:

(i) salaries and wages (including non-monetary benefits), annual leave and paid sick leave that fall due wholly within 12 months of the reporting date - recognised as short-term employee benefits and measured at undiscounted amounts based on the amounts expected to be paid when the liabilities are settled.

(ii) Long-term annual leave that is not expected to be taken within twelve months - measured at present value in accordance with AASB 119 Employee Benefits.

(iii) Unused non-vesting sick leave – not recognised, as it is not considered probable that sick leave taken in the future will be greater than the benefits accrued in the future.

(iv) On-Costs, such as payroll tax, workers’ compensation insurance premiums, and fringe benefits tax, which are consequential to employment - recognised as liabilities and expenses where the employee benefits to which they relate have been recognised.

(v) Long Service Leave for staff attached to Public Trustee – funds representing the present value of entitlements calculated in accordance with AASB 119 Employee Benefits are held in the “Non-Budget Long Service Leave Pool” administered by the Crown Finance Entity (CFE). The amount held in CFE is recognised as an asset in the Attorney General Department’s Balance Sheet. Cash representing the monthly accrual entitlements is paid to CFE by Public Trustee, and payments for Long Service Leave taken are recouped from the CFE.

(vi) Superannuation - recognised as determined by Pillar Administration.

(h) Dividends

The dividend due to NSW Treasury is calculated in accordance with TPP 02-3 Financial Distribution Policy for Government Businesses, and is based on profit adjusted for certain non-cash items as set out in Note 11.

Dividend is classified as a provision in the Balance Sheet – refer Note 19.

(i) Income Tax Equivalent

NSW Treasury has determined that the Public Trustee should pay income tax equivalents under the Taxation Equivalent



(ii) Capitalisation Thresholds

Plant, equipment, and intangible assets costing $5,000 and above individually are capitalised, except for computer equipment which is capitalised for expenditure in excess of $1,000.

(iii) Revaluation of Land and Buildings

Land and Buildings have been valued in accordance with NSW Treasury Policy and Guidelines Paper (TPP 07-1) “Valuation of Physical Non-Current Assets at Fair Value”. This policy adopts fair value in accordance with AASB 116 Property, Plant and Equipment.

Public Trustee re-values Land and Buildings every five years or with sufficient regularity to ensure that the carrying amount of each asset in the class does not differ materially from its fair value at reporting date. The last revaluation was completed on 30 June 2005 and was based on an independent assessment. In subsequent years the valuer advises Public Trustee of any changes in the market price index, and any material movements are recognised.

For the year ended 30 June 2007 the valuer advised that the market index increased for three (3) properties. Public Trustee has determined that the movements are sufficient to warrant restatement of the carrying amount of all properties in accordance with AASB 116 Property, Plant and Equipment. The financial impact is disclosed in the Statement of Changes in Equity and in Note 15.

(iv) Impairment of Property, Plant and Equipment

Tests for impairment are conducted annually to determine whether there are indicators of impairment that would materially impact on the carrying amount of property, plant and equipment.

An impairment loss is recognised immediately in profit or loss, unless the asset is carried at revalued amount in accordance with another Standard (e.g. in accordance with the revaluation model in AASB 116). Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard.

(v) Depreciation of Property, Plant and Equipment

Depreciation is provided for on a straight line basis over the estimated useful life of the asset to the entity. Improvements to leasehold premises are depreciated on a straight line basis over the remaining terms of their respective leases. The estimated useful lives of the major asset classes are as follows:

Regime using the Accounting Profit Model. Under the Accounting Profit Model, the prevailing rate of company income tax is applied to the accounting profit to determine the tax payable.

In accordance with NSW Treasury policy, income tax equivalent is based on accounting profits for the reporting year adjusted for certain non-cash items as set out in Note 11.

Income tax equivalent due is classified as a provision in the Balance Sheet – refer Note 19.

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

Revenues, expenses and assets are recognised net of goods and services tax (GST), except:

(i) where the GST incurred is not recoverable from the Australian Taxation Office, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or

(ii) for receivables and payables, which are recognised inclusive of GST.

Cash flows are included in the Cash Flow Statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the Australian Taxation Office is classified as operating cash flows.

(k) Property, Plant and Equipment

Property, plant and equipment, assets held for sale, and financial assets are measured at fair value. Other financial report items are prepared in accordance with the historical cost convention.

The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by Public Trustee. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the requirements of other Australian Accounting Standards.

(i) Plant and Equipment

Subsequent to initial recognition, plant and equipment is carried at cost less any accumulated depreciation and any accumulated impairment losses, which Public Trustee regards as an acceptable surrogate for fair value. Property is carried at fair value based on valuation methods described in paragraph (k) (iii).



2007Years

2006Years

Buildings 19-25 20-26 Leasehold Improvements 2-10 2-10 Other 1-20 2-16

Asset residual values and useful lives are reviewed and adjusted, if appropriate, at each reporting date.

An asset’s carrying amount is written down immediately to its recoverable amount if the assets carrying amount is greater than the recoverable amount.

(vi) Investment Properties

Public Trustee has no investment properties.

(l) Intangible Assets

Public Trustee recognises intangible assets only if it is probable that future economic benefits will flow to the entity and the cost of the asset can be measured reliably. Intangible assets are measured initially at cost.

All research costs relating to in-house developed software are expensed. Development costs are only capitalised when certain criteria are met.

The useful lives of intangible assets are assessed to be finite. Intangible assets are subsequently measured at fair value only if there is an active market. As there is no active market for the Public Trustee’s intangible assets, the assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. Intangible assets are tested annually for impairment.

The entity’s intangible assets are amortised using the straight line method over the life of the asset. The estimated useful lives of the intangible assets are:

2007Years

2006Years

Computer Software 3-17 3-12

(m) Financial Assets

Public Trustee has an investment in NSW Treasury Corporation’s (T-Corp) Long Term Growth facility which is carried at net fair value. The investment is recognised at market value, with any unrealised gain or loss designated as “fair value through profit or loss” pursuant to NSW Treasury mandate TPP 06-4 Accounting For Financial Instruments.

(n) Leases

Public Trustee has operating leases only. Public Trustee does not enter into finance lease agreements.

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the period in which they are incurred.

Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term.

(o) Receivables

Receivables are recognised and carried at cost, based on the original invoice amount less an allowance for any impairment. An allowance for impairment is made when collection of the full amount is no longer probable. Any changes are accounted for in the Income Statement when impaired.

(p) Payables

Trade payables and other accounts payable are recognised when the Public Trustee becomes obliged to make future payments resulting from the purchase of goods and services.

(q) Provisions

Provisions are recognised when there are legal or constructive obligations as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation.

(r) Financial Instruments

Financial instruments give rise to positions that are a financial asset of either Public Trustee or its counterparty and a financial liability of the other party. For Public Trustee these include cash at bank, deposits at call, receivables, sundry debtors, investments and creditors.

(s) Cash and Cash Equivalents

For cash flow statement reconciliation purposes, cash includes cash at bank and short term 11am money market investments with NSW Treasury Corporation. Cash equivalents include advances for petty cash.

(t) Audit Fees

The audit fee is payable to the Audit Office of New South Wales for the current year’s audit. The Auditor does not receive, or become entitled to, any other benefits in respect of other non audit services.

(u) Accounting Standards issued but not yet operative

At the reporting date, a number of Accounting Standards adopted by the AASB had been issued, but have not been early adopted by Public Trustee.



The following is a list of those standards:

Number ApplicationAASB7 &AASB 2005-10 Financial instruments disclosure;

AASB 8 & AASB 2007 – 3 Operating statements;

AASB 10 (October 2006) Presentation of financial statements;

AASB 123 (June 2007) & AASB 2007-6 Borrowing costs;

AASB 1049 The general Government sector and GFS/GAAP convergence;

AASB 2007 - 4 Australian additions to and deletions from IFRSs;

AASB 2007-5 Inventories held for distribution by not-for-profit entities;

Interpretation 4 (February 2007) Determining whether an arrangement contains a lease;

Interpretation 10 Interim financial reporting;

Interpretation 11 & AASB 2007-1 Group and treasury share transactions;

Interpretation 12 & AASB 2007-2 Service concession arrangements;

Interpretation 129 (February 2007) Service concession disclosures.

The possible impact of these standards in the period of initial application cannot be reliably measured. The standards are operative for annual reporting periods beginning on or after 1 January 2006.

(v) Change in Accounting Policy

Public Trustee has changed the policy to now recognise the commission on the distribution made from the Common Fund at the time the charges are levied in matters under management. This is in accordance with the Public Trustee Regulations which only authorise commission to be charged on receipt of income by a matter. Previously, revenue included an accrued item representing commission on a distribution from the Common Fund to matters that was declared and received by them in the following financial year.

In accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors the effect of the change in policy and amount of adjustment relating to prior periods is restated in the following table.

2002 2003 2004 2005 2006

Retained Earnings 35,459 35,560 38,666 22,317 42,258

Decrease in commission (128) - (32) (65) -

Increase in commission - 50 - - 14

Decrease in income tax equivalent - - 10 20 -

Increase in income tax equivalent - - - - (4)

Decrease in dividend distribution - - 16 32 -

Increase in dividend distribution - - - - (7)

Adjusted Retained Earnings 35,331 35,610 38,660 22,304 42,261



2. Commission and Fees

2007 2006 $’000 $’000

Commission 19,370 18,669

Community service obligation 2,480 2,390

Fees 4,319 4,211

26,169 25,270

3. Management Fee

2007 2006 $’000 $’000

Management fee - Common Fund 5,546 5,193

5,546 5,193

4. Investment Revenue

2007 2006 $’000 $’000

Interest income 142 121

Investment revenue 6,637 2,373

Unrealised gain on NSW T-Corp Long Term Growth facility (639) 4,185

6,140 6,679

5. Other Revenue

2007 2006 $’000 $’000

Car hire 42 50

Inspection fees 93 102

Refund of working expenses from clients 345 341

Other 30 87

510 580


6. Personnel Service Expenses

2007 2006 $’000 $’000

Salaries and related expenditure 15,852 15,634

Leave on-costs expense (152) (254)

Employer superannuation (6,527) (11,386)

Worker’s compensation insurance 78 69

Payroll tax and fringe benefits tax 1,140 1,075

Recreation leave 1,563 1,494

Long service leave 797 113

12,751 6,745

7. Employee Related Expenses

2007 2006 $’000 $’000

Salaries and related expenditure 205 195

Recreation leave 20 19


Employer superannuation 118 20

Worker’s compensation insurance 1 1

Payroll Tax and fringe benefits tax 13 16

390 267




8. Other Operating Expenses

2007 2006 $’000 $’000

Advertising 1,531 1,434

Fees for services rendered 1,139 817

Operating lease – minimum lease payment 1,463 1,427

Postal and telephone 702 711

Office supplies 359 249

Travel 133 114

Gas and electricity 206 166

Consultancy fees 96 177

Internal audit 69 127

Auditors remuneration – audit of the financial statements 146 129

Maintenance 990 1,098

Insurance 78 89

Training expenses 88 50

Other expenses 146 174

7,146 6,762

9. Depreciation/Amortisation

2007 2006 $’000 $’000

Depreciation

Buildings 432 394

Leasehold improvements 88 96

Plant and equipment 415 316

Total depreciation 935 806

Amortisation

Intangible assets 714 846

Total amortisation 714 846

Total depreciation and amortisation 1,649 1,652



10. Gain on Disposals

2007 2006 $’000 $’000

Gain on disposal of real estate

Proceeds of disposal - 111

Written down value of real estate disposed - 48

Net gain on disposal of real estate - 63

Gain on disposal of plant and equipment

Proceeds of disposal - 11

Written down value of assets disposed - 2

Net gain on disposal of plant and equipment - 9

Gain on disposal of financial assets

Proceeds of disposal 6,000 2,800

Written down value of assets disposed 6,000 2,800

Net gain on disposal of financial assets - -

Total net gain on disposals - 72

11. Income Tax Equivalent and Dividend Calculation

2007 2006 $’000 $’000

Profit before income tax equivalent 16,429 22,368

Less non-cash items

Superannuation – unrealised revaluation increment (8,227) (13,052)

Superannuation – unrealised revaluation decrement 109 -

T-Corp Long Term Growth Facility – unrealised revaluation decrement/(increment) 639 (4,185)

Taxable profit 8,950 5,131

Income tax equivalent at 30% 2,733 1,491


Dividend at 70% 4,463 2,435



12. Cash and Cash Equivalents

2007 2006 $’000 $’000

Cash at bank and on hand 928 181

Short term deposits 1,574 3,162

2,502 3,343

(a) Reconciliation to cash at the end of the year

Cash and cash equivalent assets recognised in the Balance Sheet are reconciled at the end of the financial year to the Cash Flow Statement as follows:

2007 2006 $’000 $’000

Cash and cash equivalents (per Balance Sheet) 2,502 3,343

Closing cash and cash equivalents (per Cash Flow Statement) 2,502 3,343

(b) Cash at bank

Cash at bank is attracting interest at rates between 5.3% and 5.8%

(c) Short term money market

Cash deposits are invested in NSW Treasury Corporation’s 11 am money market facility. The interest rates are repriced daily and floated between 5.70% and 6.20%.

13. Receivables

2007 2006 $’000 $’000

Commission and fees 491 984

Common Fund management fee 1,207 684

Personnel services (105) -

Prepayments 185 172

Sundry debtors 65 130

1,843 1,970

Management expects to receive all amounts that are due, therefore no impairment provision has been raised.



14. Financial Assets at Fair Value

2007 2006 $’000 $’000

T-Corp Long Term Growth facility 44,442 44,444

44,442 44,444

15. Property, Plant and Equipment

Land(a) Buildings(a) Leasehold Plant & Work in Total Improvements Equipment Progess $’000 $’000 $’000 $’000 $’000 $’000

1 July 2005

Gross carrying amount 8,877 9,781 1,023 3,792 33 23,506

Accumulated Depreciation - - (661) (2,612) - (3,273)

Net Carrying Amount 8,877 9,781 362 1,180 33 20,233

1 July 2006

Gross carrying amount 9,170 10,317 1,037 3,633 1,523 25,680


Net Carrying Amount 9,170 10,317 280 1,139 1,523 22,429

30 June 2007

Gross carrying amount 9,559 10,955 1,062 6,347 326 28,249


Net Carrying Amount 9,559 10,955 217 3,529 326 24,586



Reconciliation

A reconciliation of the carrying amount of each class of property, plant and equipment at the beginning and end of the current and previous reporting period is set out below.

Land(a) Buildings(a) Leasehold Plant & Work in Total Improvements Equipment Progess $’000 $’000 $’000 $’000 $’000 $’000 Balance at 1 July 2005

Gross carrying amount 8,877 9,781 362 1,180 33 20,233

Additions - - 14 277 1,490 1,781

Disposals - - - (2) - (2)

Revaluation increments 293 930 - - - 1,223

Depreciation Expense - (394) (96) (316) - (806)

Balance at 30 June 2006 9,170 10,317 280 1,139 1,523 22,429

Balance at 1 July 2006 9,170 10,317 280 1,139 1,523 22,429

Additions - 8 24 980 628 1,640

Disposals - - - - - -

Revaluation increments 390 1,063 - - - 1,453

Depreciation Expense - (433) (88) (415) - (936)

Other movements - - - 1,825 (1,825) -

Balance at 30 June 2007 9,559 10,955 217 3,529 326 24,586

(a) The values of land and buildings stated at historic cost would have been:

2007 2006 $’000 $’000

Land 8,877 8,877

Buildings 8,954 9,387



16. Prepaid Personnel Services – Superannuation Contributions

2007 2006 $’000 $’000

Prepaid Personnel Services – superannuation contributions 2,549 -

2,549 -

17. Intangible Assets

Software Work in Total Progress $’000 $’000 $’000

At 1 July 2005

Gross carrying amount 7,611 524 8,135

Accumulated amortisation (4,295) - (4,295)

Net Carrying Amount 3,316 524 3,840

At 30 June 2006

Gross carrying amount 8,285 - 8,285


Net Carrying Amount 3,146 - 3,146

At 30 June 2007

Gross carrying amount 8,404 - 8,404


Net Carrying Amount 2,551 - 2,551



Reconciliation

A reconciliation of the carrying amount of each class of intangible assets at the beginning and end of the current and previous reporting period is set out below.

Software Work in Total Progress $’000 $’000 $’000

Year ended 30 June 2006

Net carrying amount at start of year 3,316 524 3,840

Additions 37 - 37

Internally generated - 115 115

Amortisation expense (846) - (846)

Transfer from work in progress 639 (639) -

Balance as at 30 June 2006 3,146 - 3,146

Year ended 30 June 2007

Net carrying amount at start of year 3,146 - 3,146

Additions 119 - 119

Internally generated - - -

Amortisation expense (714) - (714)

Transfer from work in progress - - -

Balance as at 30 June 2007 2,551 - 2,551

18. Payables – Current

2007 2006 $’000 $’000

Creditors 1,007 967

GST payable 119 191

Accrued capital expenditure 830 407

1,956 1,565



19. Provisions

2007 2006 $’000 $’000

(a) Current

Employee benefits and related on-costs

Provision for annual leave 9 8

Annual leave on-costs - 1


Long service leave on-costs 10 16

Total Employee benefits and related on-costs 161 145

Personnel Services

Payable to Attorney General’s Department 2,595 7,659

Total Personnel Services 2,595 7,659

Income Tax Equivalent and Dividend

Income Tax Equivalent 2,733 1,491

Dividend 4,463 2,435

Total Income Tax Equivalent and Dividend 7,196 3,926

Total Current Provisions 9,952 11,730

(b) Non Current

Employee benefits and related on-costs

Provision for Superannuation 108 -

Long service leave - 6

Long service leave on-costs - 1

Total Employee benefits and related on-costs 108 7

Personnel Services

Payable to Attorney General’s Department 2,307 8,555

Total Personnel Services 2,307 8,555

Total Non Current Provisions 2,415 8,562

Total Provisions 12,367 20,292



Movements in Employee Benefits and Related On-Costs

2007 2006 $’000 $’000

Carrying amount at the beginning of financial year 152 145

Additional provisions recognised 269 152

Amounts used (152) (145)

Carrying amount at end of financial year 269 152

Movements in Personnel Services Provision

2007 2006 $’000 $’000

Carrying amount at the beginning of financial year 16,214 31,634

Additional provisions recognised 5,002 16,214

Amounts used (16,214) (31,634)

Carrying amount at end of financial year 5,002 16,214

Movements in Income Tax Equivalent and Dividend Provisions

Income Tax Equivalent Dividend Total Other Provisions

2007 2006 2007 2006 2007 2006 $’000 $’000 $’000 $’000 $’000 $’000

Carrying amount at the beginning of financial year 1,491 1,211 2,435 1,977 3,926 3,188

Additional provisions recognised 2,733 1,491 4,463 2,435 7,196 3,926

Amounts paid (1,491) (1,211) (2,435) (1,977) (3,926) (3,188)

Carrying amount at end of financial year 2,733 1,491 4,463 2,435 7,196 3,926



20. Changes in Equity

Retained Earnings Asset Revaluation Total Equity Reserve

2007 2006 2007 2006 2007 2006 $’000 $’000 $’000 $’000 $’000 $’000

Balance at the beginning of the financial year 42,324 22,317 11,115 11,602 53,439 33,919

Change in accounting policy - (98) - - - (98)

AASB 139 first-time adoption - 1,660 - (1,710) - (50)

Restated opening balance 42,324 23,879 11,115 9,892 53,439 33,771

Transactions with owners as owners

Dividend (4,463) (2,435) - - (4,463) (2,435)

Effect on dividend arising from a change in accounting policy - (7) - - - (7)

(4,463) (2,442) - - (4,463) (2,442)

Changes in equity – other than transactions with owners as owners

Change in accounting policy - 10 - - - 10

Profit for the year 13,696 20,877 - - 13,696 20,877

Increment on revaluation of land and buildings - - 1,453 1,223 1,453 1,223

13,696 20,887 1,453 1,223 15,149 22,110

Balance at the end of financial year 51,557 42,324 12,568 11,115 64,125 53,439

The Asset Revaluation Reserve has arisen from periodic revaluations of land and buildings measured at fair value in accordance with AASB 116 and TPP 07-1.



21. Commitments for Expenditure

Sponsorship Commitments

Aggregate expenditure for sponsorship contracted for at balance date but not provided for:

2007 2006 $’000 $’000

Not later than one year 110 173

Later than one year and not later than five years 165 330

Later than five years - -

275 503

Sponsorship is to UWS Nepean School of Law for a position of Fellow of Elder Law. The sponsorship runs for a period of five years until 30 June 2010. Payments are due in July and January each year.

Operating Lease Commitments – Computer hardware, office premises, office equipment and motor vehicles

Future non-cancellable operating lease rentals not provided for and payable:

2007 2006 $’000 $’000

Not later than one year 964 1,248

Later than one year and not later than five years 649 1,030

Later than five years - -

1,613 2,278

• The computer hardware leases will not be renewed on expiry of their lease periods.

• The leases for office premises have varied lease periods and renewal options. Of the current leases, the longest renewal option period is 5 years. There are no purchase options. All rents are payable in advance.

• Leases relating to office equipment have varied lease periods when entered into, the maximum being five years.

• Motor vehicle leases are for periods up to three years.



22. Contingent Liabilities

Contingent liabilities totalling approximately $387,500 ($500,000 as at 30 June 2006) exist due to claims against Public Trustee which are disputed and will need to be resolved by the Courts. The Public Trustee has insurance to meet any liability which it may be required to admit. The financial effect of such claims has not been brought to account in these statements.

As at 30 June 2007 Public Trustee had the following facilities with ANZ Bank:

Amount of Facility Amount of Facility Unused

Financial Guarantee in favour of ASIC $20,000 $20,000

23. Reconciliation of Cash Flows

For the purpose of the Cash Flow Statement, cash includes cash at bank, cash on hand, and short term deposits. Cash at the end of the financial year as shown in the Cash Flow Statement is reconciled to the related items in the Balance Sheet as follows:

2007 2006 $’000 $’000


Depreciation/amortisation 1,649 1,652

Amortisation of financial assets - -

Unrealised loss/(gain) on NSW T-CorpLong Term Growth investment 639 (4,185)

Gain on disposals - (72)

Decrease in receivables 127 509

Increase in prepaid Personnel Services – superannuation contribution (2,549) -

Decrease in payables 391 1,320

Decrease in accrued capital expenditure (423) (188)

Decrease in dividend payable (2,028) (458)

Decrease in provisions (7,925) (15,413)

Decrease in other liabilities (11) (13)

Net Cash Provided by Operating Activities 3,566 4,029



24. Financial Instruments

(a) Interest Rate Risk

The Public Trustee’s exposure to interest rate risk arises from assets and liabilities bearing variable interest rates. Details of these, and the effective weighted average interest of each class, are set out in the following table. Only cash and cash equivalent assets have an exposure, as they are subject to changes in domestic market interest rates.

For the Year Ended 30 June 2007

Financial Assets % $’000 $’000 $’000

Cash and cash equivalents 5.8 - 6.2 2,497 5 2,502

Receivables N/A - 1,593 1,593

Financial assets# N/A 44,442 - 44,442

46,939 1,598 48,537#Market value

Financial Liabilities

Payables N/A - 1,956 1,956

Other liabilities N/A - 26 26

- 1,982 1,982

*Weighted average effective interest rate was computed on an annual and book value basis.

For the Year Ended 30 June 2006

Financial Assets % $’000 $’000 $’000

Cash and cash equivalents 5.68 3,338 5 3,343

Receivables N/A - 1,732 1,732

Financial assets# N/A 44,444 - 44,444

47,782 1,737 49,519 #Market value

Financial Liabilities

Payables N/A - 1,565 1,565

Other liabilities N/A - 36 36

- 1,601 1,601

*Weighted average effective interest rate was computed on an annual and book value basis.

Total carrying amount included in the Balance Sheet

Floating Interest Rate

Weighted average effective

interest rate*

Non-interest bearing

Total carrying amount included in the Balance Sheet

Floating Interest Rate

Weighted average effective

interest rate*

Non-interest bearing



(b) Credit Risk

Public Trustee’s exposure to credit risk is limited to the carrying amount of the financial assets included in the Balance Sheet. Credit risk represents the loss that would be recognised if a counterparty holding financial assets of Public Trustee failed to discharge their obligations.

Public Trustee manages its credit risk exposures by:-

• ensuring that cash equivalent assets are only held in A grade deposits at call;

• ensuring that receivables are collected promptly, or in the case of staff travel and wardrobe advances, by fortnightly instalments as pay deductions;

• maintaining other financial assets in approved investments as permitted under the Public Authorities (Financial Arrangements) Act 1987.

Public Trustee is not materially exposed to credit risk.

Credit risk by classification of counterparties is shown in the following table:

For the year ended 30 June 2007

Governments Banks Other TotalFinancial Assets $’000 $’000 $’000 $’000

Cash and cash equivalents 1,574 923 5 2,502

Receivables - - 1,593 1,593

Financial assets 44,442 - - 44,442

46,016 923 1,598 48,537

For the year ended 30 June 2006

Governments Banks Other TotalFinancial Assets $’000 $’000 $’000 $’000

Cash and cash equivalents 3,162 176 5 3,343

Receivables - - 1,732 1,732

Financial assets 44,444 - - 44,444

47,606 176 1,737 49,519



(c) Market Risk

Market risk represents the risk that the value of a financial instrument will fluctuate as a result of change in the market. Public Trustee minimises this risk through ensuring that all investment activities are undertaken in accordance with Treasurer’s Directions, and by investing in asset classes as permitted under the Public Authorities (Financial Arrangements) Act 1987.

The only financial assets that are subject to market risk are the units held in the Long Term Growth Facility with NSW Treasury Corporation.

(d) Net Fair Value of Financial Assets and Liabilities

The aggregate net fair value of financial assets as at 30 June 2007 is $44,442,000 ($44,444,000 for 2006). This represents market value of the units held in the Long Term Growth Facility at NSW Treasury Corporation, a securities dealer licensed by the Australian Securities and Investment Commission.

Public Trustee does not have any other financial assets or financial liabilities.

25. Trustee Responsibility

Client Funds Held in the Common Fund

Section 36A of the Public Trustee Act 1913 directs that balances of all current accounts in the books of Public Trustee shall be one Common Fund.

The balances set out below represent amounts held in the Common Fund on behalf of clients:

2007 2006 $’000 $’000

Primary Portfolio 1,005,777 876,712

Growth Portfolio 272,815 276,824

Total 1,278,592 1,153,376



26. Related Party Disclosures

(a) Key Management Personnel

Name Position in Public Trustee Entity

P. Whitehead Public Trustee

(b) Key Management Personnel – Other

The following are personnel of the NSW Attorney General’s Department who are attached to the Public Trustee NSW entity to assist the Public Trustee NSW in the exercise of his functions under the Public Trustee Act 1913. Public Trustee NSW reimburses the Attorney General’s Department for their salary and related cost.

Name Position in Public Trustee Entity

A. Steinmetz General Manager Client Services, and Deputy Public Trustee

A. Lentini General Counsel, and Deputy Public Trustee

B. Cromie General Manager Business Development

C. Rawlings General Manager Finance & Funds Management

(c) Key Management Personnel Compensation

2007 2006 $’000 $’000

Short-term employee benefits 787 758

Post-employment benefits (superannuation contributions) 74 71

Other long-term employee benefits 73 70

934 899

26. After Balance Date Events

No matter or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Public Trustee, the results of these operations, or the state of affairs of the Public Trustee in subsequent financial years.

End of audited financial statements.



Appendices

Table 1 Trends in the representation of EEO groups

% of total staff

EEO group Benchmark or target

2003-04 2004-05 2005-06 2006-07

Total N/A

Women 50% 59% 59% 59% 61%

Aboriginal and/or Torres Strait Islander 2% 0% 0.3% 0.3% 0.3%

People whose first language was not English

20% 19% 20% 31% 19.4%

People with a disability 12% 4% 5% 5% 5.4%

People with a disability requiring work adjustments

7% 5% 2.3% 5.4% 1.4%

Table 2 Workforce Distribution (Men and Women)

Salaried Men Women Total Inc/Dec %Inc/Dec

Professional 18 13 31 1 3.33%

Clerical 89 156 245 -30 -10.91%

General 2 0 2 0 0%

Total 109 169 278 -29 -9.44%

Appendix 1

Equal employment opportunity statistics for the PTNSW 2007

Table 3 Staff Movements

In 2005 2006 2007 Inc/Dec 06/07

Men Women Total Men Women Total Men Women Total No %

New Recruits 9 8 17 7 15 22 6 4 10 -12 -54.50%

Transfer In 0 0 0 1 0 1 0 1 1 0 0%

Total 9 8 17 8 15 23 6 5 11 -12 -52%

Out

Retirements/Resignations

11 9 20 5 11 16 15 9 24 12 33.33%

Transfers 6 4 10 7 2 9 0 1 1 -8 -11%

Totals 17 13 30 12 13 25 15 10 25 0 0%


Subgroup as Percent of Total Staff

at each Level

Subgroup as Estimated Percent of Total Staff

at each Level

LEVEL TOTALSTAFF

(Number)

Respondents Men Women Aboriginal People &

Torres Strait Islanders

People from Racial,

Ethnic, Ethno-

Religious Minority Groups

People Whose

Language First Spoken

as a Child was not English

People with a Disability

People with a Disability Requiring

Work-related

Adjustment

< $33909 0 0% 0% 0% 0% 0% 0% 0% 0%

$33910 - 44537

45 100% 33% 67% 0% 31% 27% 11% 4%

$44538 - 49791

65 100% 8% 92% 2% 25% 25% 5% 2%

$49292 - 63006

65 100% 43% 57% 0% 17% 17% 6% 2%

$63006 - 81478

62 97% 52% 48% 0% 16% 16% 0 0%

$81479 - 101848

27 100% 67% 33% 0% 4% 11% 7% 0%

> $101849 (non SES)

12 0% 0% 0% 0% 0% 0% 0% 0%

> $101849 (SES)

2 0% 0% 0% 0% 0% 0% 0% 0%

TOTAL 278 99.28% 38.99% 61.01% 0.36% 19.49% 19.49% 5.42% 1.44%

Table 5 Percent of Total Staff by Level

Table 4 Executive Officer Positions

2004 2005 2006 2007

Men Women Total Men Women Total Men Women Total Men Women Total

CEO under S 11a 1 0 1 1 0 1 1 0 1 1 0 1

SES (Level 2) 2 0 2 2 0 2 2 0 2 2 0 2


LEVEL TOTALSTAFF

Respondents Men Women Aboriginal People

& Torres Strait

Islanders

People from

Racial, Ethnic, Ethno-

Religious Minority Groups

People Whose

Language First

Spoken as a Child was not English

People with a

Disability

People with a

Disability Requiring

Work-related

Adjustment

Permanent Full-time 238 237 93 145 1 46 47 14 4

Permanent Part-time 22 22 1 21 0 6 6 1 0

Temporary Full-time 10 9 9 1 0 2 1 0 0

Temporary Part-time 6 6 4 2 0 0 0 0 0

Contract – SES 2 2 2 0 0 0 0 0 0

Contract – Non SES

Training Positions

Retained Staff

TOTAL 278 276 109 169 1 54 54 15 4

SUBTOTALS

Permanent 260 259 94 166 1 52 53 15 4

Temporary 16 15 13 3 2 1

Contract 2 2 2

Table 6 Staff Numbers by Employment Basis


Table 7 Staff Numbers by Level

LEVEL TOTAL

STAFF

Respondents Men Women Aboriginal

People

& Torres

Strait

Islanders

People

from

Racial,

Ethnic,

Ethno-

Religious

Minority

Groups

People

Whose

Language

First

Spoken

as a Child

was not

English

People

with a

Disability

People with

a Disability

Requiring

Work-

related

Adjustment

< $33909 0 0 0 0 0 0 0 0 0

$33910 - 44537

45 45 15 30 0 14 12 5 2

$44538 - 49791

65 65 5 60 1 16 16 3 1

$49292 - 63006

65 65 28 37 0 11 11 4 1

$63006 - 81478

62 60 32 30 0 10 10 0 0

$81479 - 101848

27 27 18 9 0 1 3 2 0

> $101849 (non SES)

12 12 9 3 0 2 2 1 0

> $101849 (SES)

2 2 2 0 0 0 0 0 0

TOTAL 278 276 109 169 1 54 54 15 4


Appendix 2

Publications

• A Guide for Attorney Services

• A Guide for Beneficiaries

• A Guide for Trust Clients

• A Guide for Wills

• The Public Trustee’s Investment Profile 2005/06

• Client Feedback

• Annual Report 2005/06

• Attorney Services

• Code of Conduct and Ethics

• Facts on Fees

• Financial Services Guide

• Privacy and Public Trustee NSW

• PTConnect – external client newsletter

• ScriPT – Internal staff newsletter

• Public Trustee brochures on products and services are also printed in Arabic, Chinese, Croatian, Greek, Hindi, Macedonian, Spanish and Vietnamese

• Public Trustee NSW and Trusts

• Public Trustee NSW, Who We Are and What We Do

• Wills and Appointing an Executor

• Your Funds and the Public Trustee

• Agency Services: Superannuation Trusts

• Employee Entitlement Trusts


Appendix 3

Payment Performance Indicators 1/7/2006 to 30/6/2007

Table 1 Accounts Outstanding Per Quarter

Quarter Total $ Current $<30 days overdue $

30 to 60 days overdue $

61 to 90 days overdue $

>90 days overdue $

Sep-06 118,706 118,396 309 0 0 0

Dec-06 0 0 0 0 0 0

Mar-07 0 0 0 0 0 0

Jun-07 611,807 552,821 36,402 0 0 22,584

Note: “Current” means within due date

Table 2 Accounts Paid On Time Per Quarter

Total Accounts Paid On Time Amount Paid

Quarter Target % Actual % Total $ Total $

Sep-06 100 81.32 2,657,982 3,268,675

Dec-06 100 93.04 2,811,329 3,021,525

Mar-07 100 96.51 2,420,340 2,507,929

Jun-07 100 97.97 3,596,392 3,671,020


Appendix 4

Overseas VisitsThere were no overseas visits during 2006/07.

Appendix 5

Significant Committees

Executive Management CommitteePeter Whitehead, Anthony Steinmetz, Anthony Lentini, Chris Rawlings, Barbara Cromie

Invitees- Andrew Offield, Manager Information Services; Peter Aitchison, Manager Planning and Corporate Reform; Carol Ruthven, Manager Human Resources

Investment CommitteePeter Whitehead, Anthony Steinmetz, Anthony Lentini, Chris Rawlings

Invitees – Karen Lynch, Terry Essey and Rolf Fullgrabe

Audit and Risk CommitteeAnthony Lentini, Anthony Steinmetz, Barbara Cromie, Chris Rawlings, Ken Gabb and Mark Orr, Protective Commissioner and Public Guardian (independent Chair)

Invitees – Peter Whitehead, Allan Bell, Phil Creasey, Audit of NSW Representatives, Walter Turnbull Representatives and previously Deloitte Representatives

Joint Consultative CommitteeBarbara Cromie (Chair), Carol Ruthven, Paul Gavin, Sharon Bullen, Prathima Jagannath

Occupational Health and Safety CommitteeCarol Ruthven, Peter Aitchison, Nick Hannigan, Allan Bell, Peter Howard, Carol Coombes, Paul Gavin, Pam Jannar, Kathleen Puethe, Sharon Bullen, Joedee Scarfone

IM&T Steering CommitteePeter Whitehead, Anthony Steinmetz, Anthony Lentini, Chris Rawlings, Barbara Cromie, Daryl O’Brien, Andrew Offield

Service Delivery Review CommitteeAnthony Steinmetz, Peter Whitehead, Chris Rawlings, Barbara Cromie

Annual Report Editorial CommitteePeter Whitehead and Executive Team

Records Management Working CommitteeAnthony Lentini, Chris Rawlings, Robyn Grady, Andrew Offield, Carol Ruthven, Joe Dougall, Megan Cannon, Daryl O’Brien, Trish Reimer

Executive Membership of External CommitteesPeter Whitehead: ANZAC Memorial Trust; Trustee Corporations Association (National Council Executive); Elder Law and Succession Committee (Law Society NSW); Probate Users Committee (Supreme Court); Attorney General’s Audit Committee (Chair),AGD Executive Committee; Capacity Reference Group; Australian Guardianship and Administration Committee; Council of Costs and Quality of Government – Review of Internal Audit Capacity in the NSW Public Sector; University of Western Sydney (UWS) Elder Law Advisory Committee; Succession Act Implementation Committee.

Anthony Steinmetz: Funeral Industry Review (Department of Fair Trading); Edith Cavell Trust.Anthony Lentini: Planning for Later Life Forum (Department Aging, Disability and Home Care (DADHC))Barbara Cromie: Government Advertising Peer Review Panel (Department of Commerce)


For information on Public Trustee NSW services:

• Will making

• Estate Administration• Executor Services• Trusts• Attorney Services

Via www.pt.nsw.gov.au

or 1300 364 103

or Branch Network

or Registrars of the Local Court at Court Houses in Rural and Regional NSW.

Public Trustee NSW Branch network contact details

Open for business 9.00am to 5.00pm Monday to Friday, except Public Holidays (appointment preferred).

Sydney Metropolitan

Sydney CentralLevel 2, 19 O’Connell Street, Sydney 2000(02) 9252 0523

Trust Service Centre SydneyGPO Box 7 Sydney 20011300 135 966

Bankstown58 Kitchener Parade, Bankstown 2200(02) 9709 6922

BlacktownLevel 1, 30 Campbell Street, Blacktown 2148(02) 9621 3344

Bondi JunctionLevel 6, 9-13 Bronte Road, Bondi Junction 2022(02) 9387 4512

BurwoodLevel 1, 116 Burwood Road, Burwood 2134(02) 9744 0347

ChatswoodLevel 7, 13 Spring Street, Chatswood 2067(02) 9411 4355

Dee WhySuite 1, 874 Pittwater Road, Dee Why 2099(02) 9981 2555

Hurstville243A Forest Road, Hurstville 2220(02) 9579 6477

Liverpool112 Moore Street, Liverpool 2170(02) 9602 1885

Trust Service Centre, LiverpoolPO Box 309, Liverpool 21701300 787 807

MirandaShop 3, 629 The Kingsway, Miranda 2228(02) 9526 2466

ParramattaLevel 3, 60 Macquarie Street, Parramatta 2150(02) 9635 4033

Other Locations

ArmidaleShope 4-5, Insurance House, Beardy Street, Armidale 2350(02) 6772 7333

Broken HillCourt House, Argent Street, Broken Hill 2880(08) 8087 2631

CountryLevel 1, 112 Moore Street, Liverpool 2170(02) 9601 5399 or 1300 364 103

Gosford1 Watt Street, Gosford 2250(02) 4323 3523

Lismore6 Zadoc Street, Lismore 2480(02) 6621 8677

Newcastle158 King Street, Newcastle 2300(02) 4926 4000

Trust Service Centre NewcastlePO Box 660, Newcastle 23001300 725 412

Port MacquarieShop 2, Centreport, 114 William Street, Port Macquarie 2444(02) 6584 0741

Wollongong59 Market Street, Wollongong 2500(02) 4229 6511

Rural and Regional NSW

There is an Agent for PTNSW at every local Court House

Client Access to ServicesAdding value for clients


A

Agency Services and Corporate Business 10

Appendices 69

Applications of Principles of Multiculturalism 36

Attorney Services 10

B

Branch contact details 76

Budget Discussion 24

C

Capital Expenditure Budget 27

Charter 3

Client Access to Services 76

Client Funds Management 13

Community Involvement 17

Compliance 33

Customer Feedback 18

D

Disability Services Plan 36

Dormant Funds Act 1942 11

E

Equal Employment Opportunity 29

EEO Statistics 69

Estates 9

Executive Team 28

F

Financial Performance 21

Financial Statements 38

Financial Services Reform Act 2001 35

Financial Trends and Ratios 25

Freedom of Information 37

G

Generic Disclosures 37

Governance 33

Industrial Relations 37

Information Technology 30

Internal Audit 34

K

Key Result Areas 4

L

Land Disposal 37

M

Management of Seized or Confiscated Assets 11

N

NSW Government Women’s Action Plan 35

O

Occupational Health and Safety 36

P

Payment of Accounts 74

Payment Performance Indicators 74

Performance Discussion by the Public Trustee 4

Public Trustee NSW Workforce 69

Plans 2007/08 5

R

Recurrent Revenue & Expenditure Budget 26

Risk Management and Audit 33

S

Services and Products 9

Significant Committees 75

Staff Numbers by Employment 71

Staff Numbers by Level 72

Staff Training and Development 30

T

Trusts 9

V

Vision 3

W

Waste Reduction and Purchasing Policy and Energy

Management 36

Wills 9

Index


Notes

3 Our Vision

3 Our Charter

4 Performance Discussion

6 Our plans for 2007/08

8 Our Service to Clients

13 Client Funds Management

17 Our Community Involvement for 2006/07

21 Our Financial Performance

28 Our Management

33 Our Compliance

38 Financial Statements

69 Appendices

76 Client Access to Services

77 Index

The Hon John Hatzistergos, BEc LLM MLCMPAttorney General and Minister Justice

Level 36Governor Macquarie Tower1 Farrer PlaceSYDNEY

Dear Attorney

Pursuant to section 10 of the Annual Reports (Statutory Bodies) Act 1984, I have pleasure in presenting the Annual Report of the Public Trustee for the year ended 30 June 2007 for presentation to Parliament.

Peter WhiteheadPublic Trustee

Public Trustee NSW19 O’Connell Street, SydneyTelephone (02) 9252 0523

www.pt.nsw.gov.au

ISSN 1329-1750The total external costs to produce 500 Annual Reports is $17,870 (ex GST)The Annual Report will be available on our website www.pt.nsw.gov.au

Public Trustee NSW is a business unit of the Attorney General’s Department of NSW

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Public Trustee NSW ANNUAL REPORT 2006/07

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