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Long Service Leave

Authority

Statement of Intent

2019-20

LONG SERVICE LEAVE AUTHORITY The Long Service Leave Authority is a Territory Authority established under the Long Service Leave (Portable Schemes) Act 2009.

This Statement of Intent for 2019-20 has been prepared in accordance with Section 61 of the Financial Management Act 1996.

The responsible Minister, Ms Rachel Stephen-Smith, was consulted during the preparation of the Statement of Intent.

The Statement of Intent, which focuses on the 2019-20 Budget year, has been developed in the context of a four year forward planning horizon to be incorporated, as far as practicable, into the Long Service Leave Authority’s strategic and business planning processes.

The Long Service Leave Authority’s 2019-20 Statement of Intent has been agreed between:

Howard PenderChairperson on behalf of the Governing Board

Andrew Barr MLATreasurer

Rachel Stephen-Smith MLAMinister for Employment and Workplace Safety

Statement of Intent - ACT Long Service Leave Authority 2019-20

Contents

Purpose..............................................................................................................................4

Nature and scope of activities............................................................................................4

Performance measures and targets....................................................................................6

Employment profile..........................................................................................................10

Monitoring and reporting.................................................................................................12

Financial arrangements....................................................................................................12

Attachment 1 - Organisational Chart for Long Service Leave Authority.............................36

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Long Service Leave Authority

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Purpose

The Long Service Leave Authority (the Authority) was established under the Long Service Leave (Portable Schemes) Act 2009 (the Act) to administer portable long service leave benefit schemes for workers in the ACT engaged in the building and construction industry, contract cleaning industry, security industry and the community sector. The primary objectives of the Authority are to ensure that:

the maximum number of eligible employers and their employees are registered with the Authority;

long service leave payments to employees and contractors, and reimbursements to employers, are made in accordance with the Act;

employers’ contribution levies are collected efficiently and effectively; and

long service leave funds are invested prudently, with the objective being to ensure a modest long-term surplus of assets over liabilities in matured schemes.

Nature and scope of activities

General activities

The Authority will engage in the following activities in order to achieve its stated objectives:

undertake day-to-day operational activities, including collecting worker service credit information and levy contributions from employers, along with the processing and payment of all long service leave claims, in an accurate and timely manner;

investment of employer contributions to ensure there are sufficient funds to meet all long service leave payments;

undertake regular reviews of the Investment Plan, to keep pace with changing conditions;

maintain a compliance program to ensure the maximum number of eligible employers and employees are registered in the schemes; and

monitor the operation of its database to ensure data integrity.

Business Priorities in 2019-20

The Authority will pursue the following priorities in 2019-20:

continue to review the appropriateness of the current Investment Plan and associated investment arrangements, including the strategic asset allocation;

maintain a focus on corporate governance reforms, particularly in relation to risk management practices, staff performance management and development processes, and workplace health and safety;

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further develop our business continuity processes and succession planning practices;

maintain sound working relationships with relevant stakeholder groups;

increase community knowledge and understanding of the portable long service leave schemes, in particular employer obligations and worker entitlements; and

review and improve the Authority’s performance metrics to support data-driven decision making.

Risks

Investment risk

The Authority is required to prudently invest long service leave employer contributions to ensure that there are sufficient assets to meet long service leave liabilities. A key risk for the Authority is a reduction in the value of funds invested as a result of volatile market conditions. The Authority reviews its investment strategy regularly in light of market conditions.

Information technology risk

The Authority is heavily dependent on its IT systems, therefore the continued functionality of the system, the integrity of the data and overall system security are significant risks. These risks are mitigated through regular penetration testing, system monitoring and daily database backups. The Authority has an IT disaster recovery plan that can restore full operational capability of the IT system within 24 hours, which is tested annually. In addition, system control audits are included as part of the Authority’s internal audit program.

Contribution Levy payment risk

An ongoing risk to the Authority is that eligible employers do not register, declare service for employees or pay the required contribution levy. The Authority mitigates this risk by ensuring that its Compliance Team monitors the activity of covered industries in the Territory and liaises with workers, employers and their representative associations to ensure that all eligible employers and employees are registered. The Authority also works cooperatively with other ACT Government organisations to promote awareness of portable long service leave arrangements and obligations with mutual client groups.

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Key performance indicators for 2019-20 to 2022-23

Objective Measure Target

2019-20

Target

2020-21

Target

2021-22

Target

2022-23

Ensure the maximum number of eligible employers and their employees are registered with the Authority.

Percentage of employer registrations completed within 10 working days of receipt of a correctly completed and verified application form.

99% 100% 100% 100%

Number of visits to employer sites or premises to ensure that all employees working in the covered industries are registered with the Authority.

90 90 90 90

Contact registered employees who have not had service recorded for 2 years or more to check if they have been working in a covered industry.

500 500 500 500

Annual statements made available to employees by 30 September.

100% 100% 100% 100%

Ensure that employers’ contribution levies are collected efficiently and effectively.

Percentage of employer returns and payments submitted by due date (five working days after the end of the month following the relevant quarter).

80% 80% 80% 80%

Ensure that payments to employees and contractors are made in accordance with the Act.

Percentage of payments completed within 10 working days of receipt of a correctly completed and verified claim form.

90% 93% 95% 98%

Ensure that long service leave administered schemes’ funds are invested to ensure a long-term surplus of assets over liabilities.

Annual net return for each administered scheme on funds under management is in accordance with the Investment Plan.

2.5% above AWE1 averaged over five years for each scheme

2.5% above AWE averaged over five years for each scheme



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Objective Measure Target

2019-20

Target

2020-21

Target

2021-22

Target

2022-23

Ensure each scheme has adequate assets to meet its liabilities.

The ratio of total assets over total liabilities as at 30 June of the financial year for each administered scheme is maintained at least of the target.

110% 110% 110% 110%

1 The measure of AWE used is Australian Average Weekly Ordinary Time Earnings (AWOTE) published by the Australian Bureau of Statistics.

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Assessment of performance against 2018-19 objectivesObjective Measure Planned 2018-19 Est. Outcome

2018-19Explanation of variance

Ensure the maximum number of eligible employers and their employees are registered with the Authority.

Percentage of employer registrations completed within 10 working days of receipt of a correctly completed and verified application form.

98% 100% All applications were processed in the required time frame.

Number of visits to employer sites or premises to ensure that all employees working in the covered industries are registered with the Authority.

90 90 N/A

Contact registered employees who have not had service recorded for 2 years or more to check if they have been working in the industry.

450 450 N/A

Annual statements made available to employees by 30 September.

100% 100% N/A

Ensure that employers’ contribution levies are collected efficiently and effectively.

Percentage of employer returns and payments submitted by due date (five working days after the end of the month following the relevant quarter).

80% 83% Higher performance due to reminder emails and phone calls undertaken by Authority staff to employers.

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Objective Measure Planned 2018-19 Est. Outcome 2018-19

Explanation of variance

Ensure that payments to employees, contractors and reimbursements to employers are made in accordance with the Act.

Percentage of payments completed within 10 working days of receipt of a correctly completed and verified claim form.

85% 100% All correctly completed claims were processed within 10 working days of receipt.

Ensure that long service leave administered schemes’ funds are invested to ensure a long-term surplus of assets over liabilities.

Annual net return for each administered scheme on funds under management in accordance with the Investment Plan.

3.5% above CPI averaged over five years for each scheme.

4.1% above CPI averaged over five years for each administered scheme.

Solid market returns over the last four years has resulted in the annualised return above CPI exceeding target.

Ensure each scheme has adequate assets to meet its liabilities.

The ratio of total assets over total liabilities as at 30 June of the financial year for each administered scheme is maintained at least of the target.

110% Construction: 113%Cleaning:178%2

Community:115%Security:120%

All four administered schemes are expected to exceed the target as at 30 June 2019.

2 The assets over liabilities ratio for the Contract Cleaning scheme is expected to be higher than the target of 110% due to better than expected investment returns achieved over the past few years and a lower than anticipated long service leave liabilities growth estimated by the actuary. The scheme’s levy rate was reduced from 2% to 1.6% in April 2015, with a subsequent reduction in April 2018 to the current 1.2%. The Authority will continue to monitor the scheme’s financial position to ensure the levy rate is set appropriately while maintaining the long term sustainability of the scheme. The Authority’s actuary will conduct another comprehensive evaluation of the scheme in the next triennial review at 30 June 2020.

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Employment profileThe Authority’s staff are officers of the ACT Public Service, employed under the Public Sector Management Act 1994. The Registrar is also the Chief Executive Officer (CEO) of the Authority and a non-voting member of the Authority’s Governing Board. The CEO is employed under a long-term executive contract from 2018 to 2023. All the other staff are covered under the ACT Public Service enterprise agreement.

Organisation form

The organisational structure of the Authority is provided at Attachment 1.

Workplace Health and Safety (WH&S)

The Authority ensures its operations and practices are in compliance with the Work Health and Safety Act 2011. In addition to providing ongoing training and updates on the Act to the staff, the Authority liaises with the Injury Management and Safety Team within CMTEDD for advice on any WH&S issues.

Over the 2019-20 Budget year, the Authority will continue to implement appropriate and effective work health and safety policy and procedures with the aim of providing ongoing support, preventing injuries to staff and reducing compensation costs where possible.

Consultants and contractors

The Authority engages external consultants or contractors from time to time in response to the Authority’s operational needs. The Authority is bound by the provisions of the Government Procurement Act 2001 and the Government Procurement Regulations 2007 when contracting for goods and services.

The Authority also discloses its use of consultants and contractors in its annual report.

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Long Service Leave Authority organisational profile at 30 June 2019

Position Est. Outcomeas at 30/6/19

Est. FTE 2019-20

Years of Serviceas at 30/6/19

Gender2017-18

M F

Registrar & Chief Executive (SES 1.3)

1 1 4 - 1

Chief Operations Officer (SOG B)

1 1 0.5 1 -

Chief Finance Officer (SOG B) 1 1 8 - 1

Senior Operations Manager (SOG C)

1 1 19 1 -

Accounts and Compliance Manager (SOGC)

1 1 0.4 - 1

Compliance Manager (ASO 6) 1 1 7 - 1

Finance Manager(ASO 6)

1 1 1.5 - 1

Client Services Manager(ASO 6)

1 1 11 - 1

Senior Benefits Officer (ASO 5)

1 1 5 - 1

Benefit Support Officer (ASO 4)

0.6 0.6 6 - 0.6

Client Services Team Leader (ASO 5)

1 1 0.3 - 1

Client Services Officer (ASO 4)

4 4 2.5, 0.8, 0.7, 0.5 2 2

Compliance Officer (ASO 5)

2 2 1, 1.5 1 1

Office Manager (ASO 5)

1 1 0.7 - 1

Total 17.6 17.6 5 12.6

Age of workforce FTE 2018-19 Actual FTE 2019-20 Estimate

Under 35 years 5.6 5.6

35 – 55 years 12 12

Over 55 years 0 0


Monitoring and reportingThe Long Service Leave Authority shall satisfy the requirements of the Chief Minister’s Annual Report Directions. The Long Service Leave Authority Annual Report will, amongst other things, report against the requirements of this Statement of Intent. The Authority is not funded by budget appropriation and its accounts are not consolidated into the whole of government budget.

Annual reporting

As part of preparations for end of year reporting, the Chief Minister, Treasury and Economic Development Directorate will advise the dates when the following documents are required at the Chief Minister, Treasury and Economic Development Directorate and at the Auditor-General's Office:

a) Certified financial statements.

b) Management discussion and analysis.

c) A full and accurate set of audited financial records for the preceding financial year in the form requested.

Financial arrangementsThe budgeted financial statements included in this Statement of Intent reflect the financial activities of the Authority.

In 2019-20 the Authority is expecting to make an overall operating surplus of $7.064 million. This consolidated result is aggregated from each administered scheme’s budgeted 2019-20 operating results below:

Construction: operating surplus of $4.573 million;

Cleaning: operating deficit of $0.174 million3;

Community: operating surplus of $2.629 million; and

Security: operating surplus of $0.036 million.

3 The deficit in the Contract Cleaning scheme is predominately as a result of the levy rate reduction from 1.6% to 1.2% effective 1 April 2018. Long service leave accrued expenses are also expected to be higher than anticipated due to a decrease in the long service leave liability discount rate of 6.5% from the prior year to 6% in 2018-19.

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Financial statements

Budgeted financial statements for the 2019-20 Budget year, as well as forward estimates for the three financial years commencing 2020-21 appear below. These general purpose financial statements have been prepared in accordance with the ACT’s Model Financial Statements and include:

a) Operating Statement;

b) Balance Sheet;

c) Statement of Changes in Equity;

d) Cash Flow Statement;

e) Notes to the Financial Statements as appropriate; and

f) Individual Scheme Financial Statements.

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Long Service Leave Authority (Consolidated)Operating Statement

2018-19

2018-19 2019-20 2020-21 2021-22 2022-23Budget Est. Outcome Budget Var Estimate Estimate Estimate

$’000 $’000 $’000 % $’000 $’000 $’000 Income

Revenue 21,114 Contributions Received 21,452 22,865 7 23,507 24,155 24,805

712 Gains/(Losses) from Investments 2,329 2,540 9 2,738 3,037 3,209

10,538 Investment Income 8,725 9,206 6 9,717 10,051 10,417

806 Other 876 855 -2 875 910 93833,170 Total Revenue 33,382 35,466 6 36,837 38,153 39,369

Expenses162 Depreciation and Amortisation 171 303 77 300 291 274

812 Supplies and Services 862 686 -20 757 728 749

28,237 Long Service Leave Benefit 23,365 30,807 32 33,229 35,143 37,080

1,646 Employee Expenses 1,819 2,168 19 2,243 2,322 2,404

87 Other 101 244 142 242 236 230

30,944 Total Expenses 26,318 34,208 30 36,771 38,720 40,737

2,226 Operating Result 7,064 1,258 -82 66 -567 -1,368

2,226 Total Comprehensive Income 7,064 1,258 -82 66 -567 -1,368

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Long Service Leave Authority (Consolidated)Balance Sheet

Budget Est. Outcome Planned Planned Planned Planned as at 30/6/19 as at 30/6/19 as at 30/6/20 Var as at 30/6/21 as at 30/6/22 as at 30/6/23

$’000 $’000 $’000 % $’000 $’000 $’000

Current Assets

1,974 Cash Assets 1,904 1,956 3 1,986 1,834 1,470

9,754 Receivables 8,155 8,734 7 9,018 9,307 9,606

8 Other 16 17 6 18 19 20

184,060 Investments 187,962 200,596 7 212,630 222,886 232,263

195,796 Total Current Assets 198,037 211,303 7 223,652 234,046 243,359

Non Current Assets

599 Property, Plant and Equipment 612 524 -14 450 386 331

0 Right of use asset 0 1,578 # 1,444 1,316 1,197

575 Intangibles 475 558 17 602 606 609

1,174 Total Non Current Assets 1,087 2,660 145 2,496 2,308 2,137

196,970 TOTAL ASSETS 199,124 213,963 7 226,148 236,354 245,496Current Liabilities

790 Payables 887 944 6 1005 1068 1134

132,602 Provision for Long Service Leave Benefits

130,735 136,462 4 149,151 157,882 167,311

496 Employee Benefits 398 425 7 456 488 523

133,888 Total Current Liabilities 132,020 137,831 4 150,612 159,438 168,968

Non Current Liabilities

Lease Liability 0 1958 # 1861 1761 166215,979 Provision for Long Service Leave

Benefits 19,544 25,355 30 24,788 26,834 27,911


16,008 Total Non Current Liabilities 19,567 27,337 40 26,675 28,622 29,602

149,896 TOTAL LIABILITIES 151,587 165,168 9 177,287 188,060 198,570

47,074 NET ASSETS 47,537 48,795 3 48,861 48,294 46,926

EQUITY47,074 Accumulated Funds 47,537 48,795 3 48,861 48,294 46,926

47,074 TOTAL EQUITY 47,537 48,795 3 48,861 48,294 46,926


Long Service Leave Authority (Consolidated)Statement of Changes in Equity

Budget Est. Outcome Planned Planned Planned Planned

as at 30/6/19 as at 30/6/19 as at 30/6/20 Var as at 30/6/21 as at 30/6/22 as at 30/6/23

$’000 $’000 $’000 % $’000 $’000 $’000

44,848 Opening Balance 40,473 47,537 17 48,795 48,861 48,294

2,226 Operating Result for the Period 7,064 1,258 -82 66 -567 -1,368

2,226 Total Comprehensive Income 7,064 1,258 -82 66 -567 -1,368Total Movement in Reserves

47,074 Closing Balance 47,537 48,795 3 48,861 48,294 46,926

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Long Service Leave Authority (Consolidated)Cash Flow Statement

2018-19 2018-19 2019-20 2020-21 2010-22 2022-23Budget Est. Outcome Budget Var Estimate Estimate Estimate

$’000 $’000 $’000 % $’000 $’000 $’000CASH FLOWS FROM OPERATING ACTIVITIES Receipts

21,617 Contributions from Employers and Contractors 22,160 22,424 1 23,294 24,035 24,784

246 Other 743 767 3 783 813 836

21,863 Operating Receipts 22,903 23,191 1 24,077 24,848 25,620

Payments

18,295 Payments of Long Service Leave Benefits 16,737 19,267 15 21,107 24,362 26,576

2,365 Payment to Suppliers and Employees 2,676 2,867 7 3,000 3,051 3,150

20,660 Operating Payments 19,413 22,134 14 24,107 27,413 29,726

1,203 NET CASH INFLOWS/(OUTFLOW) FROM OPERATING ACTIVITIES 3,490 1,057 -70 -30 -2,565 -4,106

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

999 Proceeds from Sale of Property, Plant and Equipment 999 0 - 0 0 0

176 Proceeds from Sale of Investment Property 176 0 -100 0 0 0

70 Proceeds on Sale of Investments 4,050 190 -95 1,330 3,100 3,990

1,245 Investing Receipts 5,225 190 -96 1,330 3,100 3,990

Payments

0 Purchases of Property, Plant and Equipment 12 5 -58 5 5 5

175 Purchases of Intangibles 113 82 -27 45 4 3

2,044 Purchases of Investments 9,505 1,108 -88 1,220 678 240

2,219 Investing Payments 9,630 1,195 -88 1,270 687 248

-974 NET CASH FLOWS FROM INVESTING ACTIVITIES -4,405 -1,005 77 60 2,413 3,742

229 NET INCREASE/(DECREASE) IN CASH HELD -915 52 106 30 -152 -364

1,745 CASH AT THE BEGINNING OF THE REPORTING PERIOD 2,819 1,904 -32 1,956 1,986 1,834

1,974 CASH AT THE END OF THE REPORTING PERIOD 1,904 1,956 3 1,986 1,834 1,470

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Notes to the Financial Statements

Significant variations are as follows:

Operating Statement

contributions received:

– the increase of $1.413 million in the 2019-20 Budget from the 2018-19 estimated outcome is largely due to the forecast of a moderate growth in the Building and Construction scheme.

gains from investments and investment income (total investment return includes gains and investment distribution income):

– the decrease of $0.196 million in the 2018-19 estimated outcome from the original budget is mainly due to a slightly lower investment return (6%) expected to be achieved in 2018-19 than anticipated in the original budget (6.5%); and

– the increase of $0.692 million in the 2019-20 Budget from the 2018-19 estimated outcome is mainly due to the growth in the investment fund base from the anticipated additional investment and distribution.

long service leave benefit expenses:

– the decrease of $4.872 million in the 2018-19 estimated outcome from the original budget and the increase of $7.442 million in the 2019-20 Budget from the 2018-19 estimated outcome are due to revisions in the actuarial forecast for the present value of the long term long service leave liability for the four administered schemes.

employee expenses:

– the increase of $0.349 million in the 2019-20 Budget from the 2018-19 estimated outcome is mainly due to an increase in the number of full time equivalent (FTE) from 14.6 in 2018-19 to 17.6 in 2019-20.

The gradual declining of the consolidated total comprehensive income is mainly due to the levy reduction of 40 basis points for all four administered schemes effective 1 April 2018 and its expected flow on effect. The Authority conducts comprehensive triennial reviews for the portable long service leave schemes with the next triennial review due on 30 June 2020. The Authority monitors and adjusts the levy rates to ensure the sustainability of the administered schemes is maintained and the assets over liability ratio for all schemes are kept at or towards the current target of 110 per cent.

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Balance Sheet

investments:

– the increase of $3.902 million in the 2018-19 estimated outcome from the original budget is mainly due to additional investment purchase during 2018-19, partially offset by a slightly lower investment return of 6% than anticipated in the original budget (6.5%);

– the increase of $12.634 million in the 2019-20 Budget from the 2018-19 estimated outcome is due to the anticipated additional investment and distribution.

right of use assets:

– the increase of $1.578 million in the 2019-20 Budget from the 2018-19 estimated outcome is due to the application in 2019-20 of the new accounting standard, AASB 16 Leases, which requires a lessee to recognise the right-of-use assets for leases previously classified as an operating lease under AASB 17 Leases. The Authority has several operating leases that are subject to the application of the new lease standard.

lease liability:

– the increase of $1.958 million in the 2019-20 Budget from the e208-19 estimated outcome is also due to the application of the new lease standard, AASB 16 Leases, as discussed above.

current and non-current provision for long service leave benefit liabilities:

– the increase of $11.538 million in the 2019-20 Budget from the 2018-19 estimated outcome is mainly due to the revised actuarial valuation, based on the projected number of workers, wage growth, and other actuarial demographic assumptions, for all administered schemes. While the actuary expected some moderate growth in the long service leave liabilities in the Cleaning Industry and Security Industry schemes, the main growth is expected to come from the Building and Construction scheme ($4.400 million or 4.37 per cent) and the Community Sector scheme ($3.662 million or 9.81 per cent).

Statement of Changes in Equity

Variations in the statement are explained in the notes above.

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Statement of Cash Flow

Variations in the statement are explained in the notes above.

It is worth noting that net cash flow from operating activities in the 2018-19 is estimated to be $2.287 million (or 190 per cent) higher than the original budget mainly due to higher than expected contribution revenue ($0.543 million or 2.5 per cent) and lower than expected long service leave payments made in 2018-19 ($1.558 million or 9 per cent).

Cash flow patterns of the four administered schemes vary in accordance with the phase of maturity of each scheme. For example, the Security scheme is cash flow positive for the out years because of a much later scheme commencement date (1 January 2013). The Community Sector scheme is largely cash flow positive in the next year but is expected to become cash flow negative in year 2020-21. The Contract Cleaning scheme is forecast to require supplementary cash flow from investing activities in addition to contributions from employers as the scheme has long matured since it was established in 2000. The Building and Construction scheme, established in 1981, is expected to be cash neutral mainly due to the expected growth in the Building and Construction industry in the ACT, offset by a moderate increase in the long service leave claim payments projected by the actuary.

Individual Scheme Financial Statements

Construction Industry Long Service Leave SchemeOperating Statement

2018-19 2018-19 2019-20 2020-21 2021-22 2022-23Budget

Est. Outcome Budget Var Budget Budget Budget

$’000 $’000 $’000 % $’000 $’000 $’000Income

12,321 Contributions Received 12,886 13,905 8 14,348 14,781 15,208

296 Gains/(Losses) from Investments 1,491 1,610 8 1,751 1,884 1,992

6,956 Investment Income 5,692 6,019 6 6,366 6,734 7,123

706 Other 859 753 -12 782 806 833

20,279 Total Income 20,928 22,287 6 23,247 24,205 25,156Expenses

79 Depreciation and Amortisation 88 232 164 239 239 229

368 Supplies and Services 394 298 -24 319 316 325

17,363 Long Service Leave Benefit 14,981 18,751 25 19,855 21,053 22,338

685 Employee Expenses 800 954 19 987 1022 1058

80 Other 92 144 57 138 133 128

18,575 Total Expenses 16,355 20,379 25 21,538 22,763 24,078

1,704 Operating Result 4,573 1,908 -58 1,709 1,442 1,078

1,704 Total Comprehensive Income 4,573 1,908 -58 1,709 1,442 1,078

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Construction Industry Long Service Leave Scheme Balance Sheet


$’000 $’000 $’000 % $’000 $’000 $’000Current Assets

1,003 Cash Assets 1,002 1,260 26 1,110 1,102 1,058 6,125 Receivables 5,239 5,568 6 5,756 5,946 6,138

8 Other 16 17 6 18 19 20119,164 Investments 121,603 129,930 7 138,849 147,767 156,582126,300 Total Current Assets 127,860 136,775 7 145,733 154,834 163,798

Non Current Assets109 Property, Plant and Equipment 107 91 -15 78 66 56

0 Right of Use Asset 0 1,578 # 1,444 1,316 1,197575 Intangibles 475 558 17 602 606 609684 Total Non Current Assets 582 2,227 283 2,124 1,988 1,862


567 Payables 710 719 1 728 738 74797,158 Provision for Long Service Leave Benefits 94,486 96,928 3 99,671 103,648 108,945

292 Employee Benefits 175 187 7 200 215 23098,017 Total Current Liabilities 95,371 97,834 3 100,599 104,601 109,922

Non Current Liabilities0 Lease Liability 0 1,958 # 1,861 1,761 1,662

3,499 Provision for Long Service Leave Benefits 6,285 10,515 67 14,993 18,613 21,1509 Employee Benefits 10 11 10 11 12 13


101,525 TOTAL LIABILITIES 101,666 110,318 9 117,464 124,987 132,747

25,459 NET ASSETS 26,776 28,684 7 30,393 31,835 32,913EQUITY

25,459 Accumulated Funds 26,776 28,684 7 30,393 31,835 32,91325,459 TOTAL EQUITY 26,776 28,684 7 30,393 31,835 32,913

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Construction Industry Long Service Leave SchemeStatement of Changes in Equity

Budget Est. Outcome Planned Planned Planned Plannedas at 30/6/2019 as at 30/6/19 as at 30/6/20 Var as at 30/6/21 as at 30/6/22 as at 30/6/23

$’000 $’000 $’000 % $’000 $’000 $’00023,755 Opening Balance 22,203 26,776 21 28,684 30,393 31,835

1,704 Operating Result for the Period 4,573 1,908 -58 1,709 1,442 1,078

1,704 Total Comprehensive Income 4,573 1,908 -58 1,709 1,442 1,07825,459 Closing Balance 26,776 28,684 7 30,393 31,835 32,913

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Construction Industry Long Service Leave SchemeCash Flow Statement



12,801 Contributions from Employers and Contractors 12,996 13,650 5 14,237 14,673 15,297 200 Other 655 679 4 704 725 747

13,001 Operating Receipts 13,651 14,329 5 14,941 15,398 16,044 Payments

12,500 Payments of Long Service Leave Benefits 11,763 12,078 3 12,635 13,454 14,505 1,024 Payment to Suppliers and Employees 1,198 1,253 5 1,296 1,330 1,375

13,524 Operating Payments 12,961 13,331 3 13,931 14,784 15,880 -523 NET CASH FLOWS FROM OPERATING ACTIVITIES 690 998 45 1,010 614 164

CASH FLOWS FROM INVESTING ACTIVITIESReceipts

999 Proceeds from Sale of Property, Plant and Equipment 999 0 - 0 0 0 176 Proceeds from Sale of investment Property 176 0 -100 0 0 0

0 Proceeds on Sale of Investments 3,000 0 -100 0 0 0 1,175 Investing Receipts 4,175 0 -100 0 0 0

Payments0 Purchases of Property, Plant and Equipment 7 5 -29 5 5 5

175 Purchases of Intangibles 113 82 -27 45 4 3 531 Purchase of Investments 5,800 653 -89 1,110 613 200 706 Investing Payments 5,920 740 -88 1,160 622 208 469 NET CASH FLOWS FROM INVESTING ACTIVITY -1,745 -740 58 -1,160 -622 -208 -54 NET INCREASE/(DECREASE) IN CASH HELD -1,055 258 124 -150 -8 -44

1,057 CASH AT THE BEGINNING OF THE REPORTING PERIOD 2,057 1,002 -51 1,260 1,110 1,102 1,003 CASH AT THE END OF THE REPORTING PERIOD 1,002 1,260 26 1,110 1,102 1,058

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Cleaning Industry Long Service Leave SchemeOperating Statement


$’000 $’000 $’000 % $’000 $’000 $’000IncomeRevenue

1,021 Contributions Received 1,094 1,126 3 1,160 1,195 1,23177 Gains/(Losses) from Investments 150 161 7 168 179 180

837 Investment Income 712 733 3 756 772 79114 Other 15 17 13 18 19 19

1,949 Total Revenue 1,971 2,037 3 2,102 2,165 2,221

Expenses1,541 Long Service Leave Benefit 1,856 1,675 -10 1,787 1,893 1,990

166 Employee Expenses 182 217 19 224 232 24087 Supplies and Services 87 76 -13 91 81 83

4 Other 20 20 - 20 19 181,798 Total Expenses 2,145 1,988 -7 2,122 2,225 2,331

151 Operating Result -174 49 128 -20 -60 -110151 Total Comprehensive Income -174 49 128 -20 -60 -110

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Cleaning Industry Long Service Leave SchemeBalance Sheet


$’000 $’000 $’000 % $’000 $’000 $’000

Current Assets127 Cash Assets 93 53 -43 66 52 22744 Receivables 460 488 6 499 510 521

14,425 Investments 14,812 15,496 5 16,087 16,641 17,12315,296 Total Current Assets 15,365 16,037 4 16,652 17,203 17,66615,296 TOTAL ASSETS 15,365 16,037 4 16,652 17,203 17,666

Current Liabilities132 Payables 58 76 31 95 114 135

7,551 Provision for Long Service Leave Benefits 8,061 8,554 6 9,405 10,074 10,623

56 Employee Benefits 40 43 8 46 49 527,739 Total Current Liabilities 8,159 8,673 6 9,546 10,237 10,810

Non Current Liabilities

291 Provision for Long Service Leave Benefits 210 319 52 80 0 0

6 Employee Benefits 2 2 - 3 3 3

297 Total Non Current Liabilities 212 321 51 83 3 3

8,036 TOTAL LIABILITIES 8,371 8,994 7 9,629 10,240 10,8137,260 NET ASSETS 6,994 7,043 1 7,023 6,963 6,853

EQUITY7,260 Accumulated Funds 6,994 7,043 1 7,023 6,963 6,8537,260 TOTAL EQUITY 6,994 7,043 1 7,023 6,963 6,853

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Cleaning Industry Long Service Leave SchemeStatement of Changes in Equity


$’000 $’000 $’000 % $’000 $’000 $’000

7,109 Opening Balance 7,168 6,994 -2 7,043 7,023 6,963Accumulated Funds

151 Operating Result for the Period -174 49 128 -20 -60 -110

151 Total Comprehensive Income -174 49 128 -20 -60 -110

7,260 Closing Balance 6,994 7,043 1 7,023 6,963 6,853

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Cleaning Industry Long Service Leave SchemeCash Flow Statement



1,028 Contributions from Employers and Contractors 1,097 1,121 2 1,156 1,185 1,2235 Other 12 14 17 14 15 15

1,033 Operating Receipts 1,109 1,135 2 1,170 1,200 1,238Payments

939 Payments of Long Service Leave Benefits 949 1,073 13 1,174 1,304 1,441249 Payment to Suppliers and Employees 260 292 12 313 310 317

1,188 Operating Payments 1,209 1,365 13 1,487 1,614 1,758-155 NET CASH FLOWS FROM OPERATING ACTIVITIES -100 -230 130 -317 -414 -520


70 Proceeds on Sale of Investments 550 190 -65 330 400 49070 Investing Receipts 550 190 -65 330 400 490

Payments7 Purchases of Investments 550 0 -100 0 0 07 Investing Payments 550 0 -100 0 0 0

63 NET CASH FLOWS FROM INVESTING ACTIVITIES 0 190 - 330 400 490-92 NET INCREASE/(DECREASE) IN CASH HELD -100 -40 60 13 -14 -30219 CASH AT THE BEGINNING OF THE REPORTING PERIOD 193 93 -52 53 66 52127 CASH AT THE END OF THE REPORTING PERIOD 93 53 -43 66 52 22

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Community Sector Long Service Leave SchemeOperating Statement


$’000 $’000 $’000 % $’000 $’000 $’000

Income Revenue

6,981 Contributions Received 6,800 7,068 4 7,199 7,344 7,497246 Gains from Investments 632 690 9 722 864 915

2,528 Investment Income 2,097 2,217 6 2,345 2,280 2,223 82 Other 83 80 -4 69 78 78

9,837 Total Revenue 9,612 10,055 5 10,335 10,566 10,713Expenses

83 Depreciation and Amortisation 83 71 -14 61 52 45309 Supplies and Services 335 269 -20 290 286 294

8,442 Long Service Leave Benefits 5,759 9,376 63 10,486 10,993 11,445711 Employee Expenses 746 889 19 920 952 986

2 Other 60 66 10 70 71 719,547 Total Expenses 6,983 10,671 53 11,827 12,354 12,841

290 Operating Result 2,629 -616 -123 -1,492 -1,788 -2,128290 Total Comprehensive Income 2,629 -616 -123 -1,492 -1,788 -2,128

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Community Sector Long Service Leave Scheme Balance Sheet


$’000 $’000 $’000 % $’000 $’000 $’000

Current Assets722 Cash Assets 688 541 -21 702 563 287

2,567 Receivables 2,229 2,427 9 2,504 2,583 2,670

0 Other 0 0 - 0 0 0

45,532 Investments 46,727 49,834 7 51,901 52,245 51,883

48,821 Total Current Assets 49,644 52,802 6 55,107 55,391 54,840

Non Current Assets

490 Property, Plant and Equipment 505 433 -14 372 320 275

490 Total Non Current Assets 505 433 -14 372 320 275


91 Payables 117 146 25 179 212 248



26,188 Total Current Liabilities 26,462 28,369 7 36,887 40,455 43,319Non Current Liabilities


11 Employee Benefits 10 10 - 11 11 12


36,581 TOTAL LIABILITIES 37,632 41,334 10 45,070 47,090 48,62212,730 NET ASSETS 12,517 11,901 -5 10,409 8,621 6,493

EQUITY12,730 Accumulated Funds 12,517 11,901 -5 10,409 8,621 6,49312,730 TOTAL EQUITY 12,517 11,901 -5 10,409 8,621 6,493

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Community Sector Long Service Leave SchemeStatement of Changes in Equity


$’000 $’000 $’000 % $’000 $’000 $’000

12,440 Opening Balance 9,888 12,517 27 11,901 10,409 8,621290 Operating Result for the Period 2,629 -616 -123 -1,492 -1,788 -2,128

290 Total Comprehensive Income 2,629 -616 -123 -1,492 -1,788 -2,128

12,730 Closing Balance 12,517 11,901 -5 10,409 8,621 6,493

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Community Sector Long Service Leave SchemeCash Flow Statement


$’000 $’000 $’000 % $’000 $’000 $’000CASH FLOWS FROM OPERATING ACTIVITIESReceipts

6,990 Contributions from Employers and contractors 7,350 6,910 -6 7,109 7,351 7,40337 Other 72 69 -4 59 66 66

7,027 Operating Receipts 7,422 6,979 -6 7,168 7,417 7,469Payments

4,739 Payments of LSL Benefits 3,908 5,713 46 6,797 9,018 9,965969 Payment to Suppliers and Employees 1,081 1,158 7 1,210 1,238 1,280

5708 Operating Payments 4,989 6,871 38 8,007 10,256 11,245

1,319 NET CASH FLOWS FROM OPERATING ACTIVITIES 2,433 108 -96 -839 -2,839 -3,776


0 Proceeds on Sale of Investments 500 - -100 1,000 2,700 3,500 0 Investing Receipts 500 - -100 1,000 2,700 3,500

Payments0 Purchases of Property, Plant and Equipment 5 0 -100 0 0 0

962 Purchases of Investments 2,775 255 -91 0 0 0962 Investing Payments 2,780 255 -91 0 0 0

-962 NET CASH FLOWS FROM INVESTING ACTIVITIES -2,280 -255 89 1,000 2,700 3,500

357 NET INCREASE/(DECREASE) IN CASH HELD 153 -147 -196 161 -139 -276

365 CASH AT THE BEGINNING OF THE REPORTING PERIOD 535 688 29 541 702 563

722 CASH AT THE END OF REPORTING PERIOD 688 541 -21 702 563 287

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Security Industry Long Service Leave SchemeOperating Statement

2018-19 2018-19 2019-20 2020-21 2021-22 2022-23Budget Est. Outcome Budget Var Estimate Estimate Estimate $’000 $’000 $’000 % $’000 $’000 $’000

Income Revenue

791 Contributions Received 672 766 14 800 835 869 93 Gains from Investments 56 79 41 97 110 122

217 Investment Income 224 237 6 250 265 280 4 Other 4 5 25 6 7 8

1,105 Total Revenue 956 1,087 14 1,153 1,217 1,279 Expenses

891 Long Service Leave Benefit 769 1,005 31 1,101 1,204 1,307 84 Employee Expenses 91 108 19 112 116 120 48 Supplies and Services 46 43 -7 57 45 47

1 Other 14 14 - 14 13 13 1,024 Total Expenses 920 1,170 27 1,284 1,378 1,487

81 Operating Result 36 -83 -331 -131 -161 -20881 Total Comprehensive Income 36 -83 -331 -131 -161 208

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Security Industry Long Service Leave Scheme Balance Sheet


$’000 $’000 $'000 % $’000 $’000 $’000Current Assets

122 Cash Assets 121 102 -16 108 117 103 318 Receivables 227 251 11 259 268 277

4,939 Investments 4,820 5,336 11 5,793 6,233 6,675 5,379 Total Current Assets 5,168 5,689 10 6,160 6,618 7,055 5,379 TOTAL ASSETS 5,168 5,689 10 6,160 6,618 7,055

Current Liabilities0 Payables 2 3 50 3 4 4

1,937 Provision for Long Service Benefits 2,006 2,931 46 3,554 4,117 4,887


1,944 Total Current Liabilities 2,028 2,955 46 3,580 4,145 4,917 Non Current Liabilities

1,807 Provision for Long Service Leave Benefits 1,889 1,566 -17 1,543 1,597 1,470

3 Employee Benefits 1 1 - 1 1 1 1,810 Total Non Current Liabilities 1,890 1,567 -17 1,544 1,598 1,471 3,754 TOTAL LIABILITIES 3,918 4,522 15 5,124 5,743 6,388

1,625 NET ASSETS 1,250 1,167 -7 1,036 875 667 EQUITY

1,625 Accumulated Funds 1,250 1,167 -7 1,036 875 667 1,625 TOTAL EQUITY 1,250 1,167 -7 1,036 875 667

37


Security Industry Long Service Leave SchemeStatement of Changes in Equity


$’000 $’000 $’000 % $’000 $’000 $’000

1,544 Opening Balance 1,214 1,250 3 1,167 1,036 875 81 Operating Result for the Period 36 -83 -331 -131 -161 -20881 Total Comprehensive Income 36 -83 -331 -131 -161 -208

1,625 Closing Balance 1,250 1,167 -7 1,036 875 667

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Security Industry Long Service Leave SchemeCash Flow Statement

2018-19 2018-19 2019-20 2020-21 2020-22 2022-23Budget Est. Outcome Budget Var Estimate Estimate Estimate $’000 $’000 $’000 % $’000 $’000 $’000

CASH FLOWS FROM OPERATING ACTIVITIES Receipts

798 Contributions from Employers and contractors 717 743 4 792 826 861 4 Other 4 5 25 6 7 8

802 Operating Receipts 721 748 4 798 833 869 Payments

117 Payments of Long Service Leave Benefits 117 403 244 501 586 665 123 Payment to Suppliers and Employees 137 164 20 181 173 178 240 Operating Payments 254 567 123 682 759 843 562 NET CASH FLOWS FROM OPERATING ACTIVITIES 467 181 -61 116 74 26


0 Proceeds on Sale of Investments 0 0 - 0 0 0 0 Investing Receipts 0 0 - 0 0 0

Payments544 Purchases of Investments 380 200 -47 110 65 40 544 Investing Payments 380 200 -47 110 65 40

-544 NET CASH FLOWS FROM INVESTING ACTIVITIES -380 -200 47 -110 -65 -40 18 NET INCREASE/(DECREASE) IN CASH HELD 87 -19 122 6 9 -14

104 CASH AT THE BEGINNING OF THE REPORTING PERIOD 34 121 256 102 108 117 122 CASH AT THE END OF REPORTINGN PERIOD 121 102 -16 108 117 103

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Attachment 1 - Organisational Chart for Long Service Leave Authority

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