NSW Trustee & Guardian Annual Report 2014-2015 · NSW Trustee & Guardian Annual Report 2014-2015 . Incorporating the Public Guardian reporting requirements . ... • Attorney General

NSW Trustee & Guardian Annual Report 2014-2015

Incorporating the Public Guardian reporting requirements

N S W T G A n n u a l R e p o r t

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The Hon. Gabrielle Upton, MP Attorney General and Minister for Justice Parliament House SYDNEY NSW 2000

Dear Attorney General,

I am pleased to forward for presentation to Parliament the annual report of NSW Trustee & Guardian together with associated financial statements for the year 2014–2015. The report is prepared in accordance with the NSW Trustee and Guardian Act 2009, Annual Reports (Statutory Bodies) Act 1984 and Public Finance and Audit Act 1983.

Yours sincerely

Imelda Dodds Chief Executive Officer NSW Trustee & Guardian

NSW Trustee & Guardian 160 Marsden Street, Parramatta NSW 2150 NSW Trustee & Guardian is a business unit of the Department of Justice Telephone (02) 8688 2600 Fax (02) 8688 9783 www.tag.nsw.gov.au ISSN 1329‐1750 Total external costs to produce the annual report were nil The annual report is available online at www.tag.nsw.gov.au

http://www.tag.nsw.gov.au/



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Table of Contents Mission and Objectives of NSW Trustee & Guardian 4

CEO Review of Operations for the Annual Report 7

Performance Highlights 2014-2015 10

Management and Activities 10

Financial Performance 23

Workforce 28

Projects and Campaigns 29

Governance 34

Future Plans 44

Public Guardian Annual Report 45

Financial Statements 56

Appendices 98

Index 114


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Mission and Objectives of NSW Trustee & Guardian Our Vision To be the first choice trustee of the people of NSW. Our Mission To work with the people of NSW to provide security and certainty in giving effect to their will and preferences in the planning and management of their estate.

Our Values • Integrity • Trust • Service • Accountability

Our Services NSW Trustee & Guardian has six core business services under the NSW Trustee and Guardian Act 2009:

• Will making • Estate administration • Executor services • Trust management • Power of Attorney, preparation and management • Financial management services.


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Our services include the following major activities: • Providing substitute financial management services for people with decision‐making

disabilities under a court or tribunal order • Authorising and directing the performance of private managers appointed by the

Supreme Court, Guardianship Division of the NSW Civil and Administrative Tribunal (NCAT) or Mental Health Review tribunal (MHRT)

• Independent and impartial executor, trustee, agent and attorney services for the people of NSW

• Will making • Administering deceased estates • Power of attorney services • Witnessing enduring guardianship instruments • Trustee of trusts created by wills, deeds, court orders and legislation • Managing seized and confiscated assets under the Criminal Assets Recovery Act 1990

and the Confiscation of Proceeds of Crime Act 1989 • Trustee for protected defendants • Managing the financial affairs of people who are declared missing persons • Administering investments and other assets on behalf of clients, including financial

planning, funds management and taxation services • Promoting the need to plan for later life: i.e. making a will, enduring power of attorney

and enduring guardianship • Advising government on relevant aspects of policy and legislation • Contributing to relevant law reform development • Dealing with inactive charitable and community funds under the Dormant Funds Act

1942. The NSW Trustee & Guardian supports the Public Guardian, who is a statutory officer under the Guardianship Act 1987. The Public Guardian operates independently but reports administratively to the Chief Executive Officer of NSW Trustee & Guardian. The Public Guardian fulfils the roles of:

• Guardian, providing medical and lifestyle substitute decision making services for people

with decision‐making disabilities under court or tribunal order • Informing the community about guardianship • Providing support to private guardians to fulfil their role.


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Our Clients and Stakeholders Our clients and stakeholder include: • Clients and beneficiaries whose matters we manage • Private financial managers • Family members, carers and health professionals involved with clients under our

management • People under guardianship • Private guardians • Staff • Courts, tribunals and regulatory agencies • Peak disability groups • People of NSW and organisations who represent them • Attorney General and Treasurer on behalf of NSW Government • Non‐government and professional bodies.


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CEO Review of Operations for the Annual Report Internal Progress and Achievements

As the population of NSW steadily ages, NSW Trustee & Guardian (NSWTG) continues promoting the need for the community to plan for the future.

The importance of taking time to record individual wishes and ensure that they are respected in the event that an individual loses capacity to make their own decision or when they die cannot be overstated.

We have joined with Carers, Ageing and Disability Inclusion (FACS) and the Public Guardian, and repeated the highly successful marketing campaign Get it in black & white. The campaign is a call to action for adults with capacity to complete an enduring power of attorney, enduring guardianship, and a will. Research undertaken for the first campaign demonstrated that just 5% of people currently understood the purpose of all three planning ahead documents. Fact sheets were produced in fifteen languages including English.

NSWTG has continued to work with the National Disability Insurance Agency (NDIA) in the Hunter Region, identifying teething problems and minimising the risk of duplications in an effort to ensure that clients have proper access to the new scheme. We have developed a series of tools to assist both agencies to better meet the needs of mutual clients.

Last year we reported on joint sponsorship with Ageing, Disability and Home Care (ADHC) and the Public Guardian of a pilot program to trial assisted and supported decision making for people with an intellectual disability. The evaluation of the pilot broadly concluded that assisted and supported decision making was likely to be most successful with people who had not entered the guardianship or financial management system. Nevertheless, it could be applied to people who already had a formal decision maker in their life. With the impending transfer of responsibility for disability services from State to Commonwealth; NSWTG and the Public Guardian have accepted responsibility for continuing the pilot project for a further twelve months.

We continue to work within the framework of the new Aged Care Legislation Living Longer Living Better. Together with other state trustees, we have petitioned the Commonwealth to implement an extension of timeframe for the signing of contracts where a person has a financial manager appointed. The current 28 day period is insufficient for any financial manager to obtain necessary information about their client in order to make the best possible decision on the funding option of aged care. The Commonwealth has advised that the power to extend the timeframe rests with the aged care facilities and they have written to them asking them to extend the timeframe. NSWTG will continue to monitor these developments.

NSWTG promotes will making and end of life planning as a crucial way to help ensure a person’s wishes can be documented and respected. Our engagement in a joint four year


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project between The University of Queensland, Queensland University of Technology and Victoria University in partnership with seven public trustee organisations across Australia culminated in the release of a new report entitled Having the last word? will making and contestation in Australia. The report gives fascinating insight into will making practices across our nation. Led by Associate Professor Dr Cheryl Tilse, the study found that Australia enjoys a relatively high rate of will making with 59% already having completed a will and 22% expecting to make one. This is a high proportion in comparison with the reported rates in the UK and the US. It is people over 40 that are most likely to have a will with younger age groups under valuing the need for one. Similarly, there is a tendency for people to perceive will making as a one‐off activity.

The research recommends, and NSWTG supports the view that wills should be seen as living documents that need to be regularly reviewed and updated as our circumstances change through life. Also, people should be encouraged to see wills as serving a broader purpose as family planning documents (e.g. about the provision of guardianship for children; giving reasons for their decisions on asset distribution; funeral arrangements; appointing an executor) – a will is not just a document about asset distribution.

As a part of our strategic direction to provide greater support to people under a private financial management arrangement, NSWTG called for tenders from the insurance industry for the provision of a bond scheme similar to that provided in the United Kingdom. The scheme is a simple insurance against default by a private manager and will enable early recovery of lost assets, thereby ensuring that the person with the disability is not disadvantaged.

Internal Progress and Achievements

Last year we announced the whole of organisation transformation known as 2017 & Beyond. The strategy aims to increase the uptake of preplanning mechanisms and to make the strategic shift towards the appointment of more private managers by courts and tribunals. The implementation of the bond scheme referred to above is one of many strategies designed to underpin this strategic direction.

Nous Group has continued to work with us as consultants throughout the transformation project. As the project has entered its second year, a comprehensive business case to underpin the strategic vision of NSWTG is currently with Government for its consideration.

Meanwhile, we have continued to streamline processes across the organisation, a series of projects engaging staff have been undertaken and include:

• Financial Reporting – aimed at NSWTG improving its financial reporting and management and develop a workforce which actively manages financial performance to support ongoing financial sustainability.

• Decision Making and Delegations – NSWTG will improve the service delivered to its clients with a revised decision making framework and delegations policy to support staff making a decision in a timely, consistent and transparent manner with appropriate risk management.


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• Marketing Strategy – aimed at ensuring that a greater proportion of the NSW community have a will, power of attorney and enduring guardianship. NSWTG has a range of cost‐effective distribution mechanisms to better meet client needs.

• Integrated Digital Management Strategy – NSWTG has a clear future vision and plan for its digital and knowledge management systems to meet its current and projected service delivery requirements.

• Leadership – to build the capabilities of leaders and managers to successfully lead the transformation, engage staff, drive business performance and build and maintain a positive culture to achieve NSWTG’s vision and mission.

Operating Environment

Constraints in the State’s fiscal policy and budgetary framework continue to pose challenges for NSWTG to meet the increase demand for services and are amongst the drivers for the 2017 & Beyond project.

NSWTG fees are set by regulation and reviewed at regular intervals. The Independent Pricing and Regulatory Tribunal (IPART) conducted its review of fees and its report is with Government for consideration. It is anticipated that new fees will be in place by 1 July 2016.


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Performance Highlights 2014-2015 • Developed a new vision and mission for NSWTG to address key strategic priorities of:

increasing the uptake of pre‐planning instruments in the community; increasing the ratio of private financial managers to direct management; transforming service delivery.

• Worked in partnership with Ageing, Disability and Home care and the National Disability Insurance Agency to develop protocols for the implementation of National Disability Insurance Scheme (NDIS) for NSWTG clients in the pilot areas.

• A Customer Experience Statement was developed to guide and reflect the nature of service our clients should experience.

• Private Management Branch trialled a simpler form of accounting for low risk estates; simplified and standardised private manager proposal forms; uploaded more information to the NSWTG website to allow easier access.

• Completed tender for a bond scheme to provide security for private financial management clients.

• Implemented panel service providers for transparency of engagement of third party providers for NSWTG clients.

• Implemented electronic document management systems across NSWTG to improve process times for sharing of information.

• Experienced a 22% reduction in customer complaints since the 2013–2014 financial year.

Management and Activities NSWTG endeavours to encourage the NSW community to pre‐plan for the situations where they may be unable to make decisions for themselves. In undertaking pre‐planning individuals express their wishes for their future financial, health and lifestyle decisions and appoint a person of their choice to make decisions if they are unable or if they lose capacity. Where there are no instruments in place or for some reason the pre‐planning instruments are not meeting the individual’s needs, there can be a need for a financial management order. NSWTG client service teams deliver services throughout the State. Six offices located within the regions currently deliver trustee services only. In order to match client requirements and ensure financial sustainability of the organisation, the need for change to NSWTG’s way of operating and service delivery mechanisms was progressed. A full report on the 2017 and Beyond transformation is provided on page 29.


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Wills and Powers of Attorney for Future Business

NSWTG makes wills for people appointing us as executor. Currently, there is no charge for making a will and fees are only levied at the time of administration of the estate. Wills are written as a community service and generate future business. This forms the basis of our estate administration work, which generates up to 60% of revenue. This is under review by the Independent Pricing & Regulatory Tribunal (IPART). We made 9512 wills in 2014–2015, around 50% of which were for new clients. Our target was 9,800 wills.

Deceased Estates

NSWTG manages both testate (will) and intestate (no will) estates. We cannot decline an estate for administration on the basis of its low value but receive community service funding from the NSW Government for managing such estates. We also accept referral of estates from executors who do not wish to obtain probate themselves or trustees and administrators who wish to discontinue their involvement. Estates administered cover a wide range of value and complexity. This year we obtained administration of 1568 new estates with a total value of $579 million and had 5314 estates on hand. The average value of estates under grant of administration fell from $599,774 in 2013–2014 to $594,263 in 2014–2015. We also administered 605 smaller estates without the need for formal administration, transferring property to the surviving joint tenant and arranging funerals where no‐one else was available. We filed 68% per cent of estates with values less than $100,000 with the Supreme Court within three months of the estate being reported. Trusts NSWTG 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 1987. Trusts can be created by individuals or organisations, including government agencies. We are receiving an increasing number of trusts for infants from superannuation organisations as fund managers, as trustees of superannuation funds become more aware of our services.

In 2014–2015 we received 1937 new trusts with a value of $51 million. This is an increase of 20% on 2013‐14 although at a much lower average value. As at 30 June 2015 we were managing 7822 long‐term trusts, an increase of 12% on the previous year.


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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, manage the assets and distribute income and capital

according to the terms of the trust. • Retirement villages – we act as trustee for the unit holders’ funds.

Powers of Attorney We have a two‐tiered management plan under attorney and agency services, allowing clients to choose as much or as little help as they require while giving them the security of an independent, professional attorney. It comprises: • Future Assist — where we act only at client request or when they are no longer able to

look after their own affairs. • Active Assist — where the client requires ongoing assistance in dealing with part or all of

their financial affairs.

This year we received 66 new matters with a value over $27.5 million. We made 1405 powers of attorney for prospective Active Assist clients. As at 30 June 2015 we were managing the financial affairs of 386 clients under powers of attorney.

Witnessing Enduring Guardianship Instruments

The Guardianship Act 1987 regulations enable accredited staff of NSWTG to witness enduring guardianship instruments. During this reporting period 565 clients have taken up the opportunity to appoint an enduring guardian with a NSWTG staff member as witness.

Financial Management Services NSWTG makes financial decisions for people with cognitive disabilities when appointed by the NSW Civil & Administrative Tribunal (NCAT) (Guardianship Division), Supreme Court or the Mental Health Review Tribunal (MHRT) as financial manager. NSWTG also authorises and directs the performance of private financial managers appointed by the Supreme Court or NCAT (Guardianship Division).


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Table 1: Number of Clients at 30 June 2010 to 2015

30 June 2010 30 June 2011 30 June 2012 30 June 2013 30 June 2014 30 June 2015

People who have NSWTG as their manager

9,579 9,758 9,968 10,466 10,768 10,999

People who have private managers

2,961 3,112 3,185 3,444 3,600 3,771

Total 12,540 12,870 13,153 13,910 14,368 14,770 People for whom NSWTG fulfils the role of banker*

432 384 350 42 19 16

* These people have developmental disabilities and live in supported accommodation. NSWTG does not formally manage their financial affairs. The number of these clients is reducing as applications for formal financial management orders for them are heard by NCAT (Guardianship Division).

Table 2: New Orders made between 1 July and 30 June 2010-2011 to 2014-2015 2009–2010 2010-2011

2011-2012 2012-2013 2013-2014 2014-2015

People who have NSWTG as manager of their affairs

1,110 (63.4%)

921 (57.7%)

1,035 (57.6%)

1,310 (61.8%)

1,053 (56.6%)

1,082 (56.5%)

People who have private managers of their affairs

642 (36.6%)

672 (42.3%)

757 (42.4%)

811 (38.2%)

808 (43.4 %)

833 (43.5 %)

Total orders made

1,880** 1,593

1,785 2,121 1,861 1,915

**Published figure for new orders for 2009‐10 was found to be incorrect as it included 50 reviewed financial management orders. NCAT (Guardianship Division) is the primary source of financial management orders for both private financial managers and NSWTG.


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Table 3: Source of New Orders made between 1 July and 30 June 2010-2011 to 2014-2015

Order Source

2009–2010 2010–2011

2011-2012 2012-2013 2013-2014 2014-2015

Supreme Court

42 (2.2%)

37 (2.3%)

69 (4%)

52 (2.4%)

65 (3.5%)

60 (3.1%)

Guardianship Tribunal

1,741 (92.6%)

1,465 (92%)

1,625 (91%)

1,968 (92.8%)

1,703 (91.5%)

1,774 (92.6%)

Magistrate orders

16 (0.9%)

0 1 (>.1%)

0 0 0

Mental Health Review Tribunal

81 (4.3%)

91 (5.7%)

90 (5%)

101 (4.8%)

93 (5.0%)

81 (4.2%)

Total 1,880 **

1,593 1,785 2,121 1,861 1,915

**Published figure for new orders for 2009‐10 was found to be incorrect as it included 50 reviewed financial management orders.

Private Management Branch NSWTG authorises and directs people who have been appointed by the Supreme Court or NCAT to privately manage the financial affairs of a person. These orders are made for people unable to manage their own affairs due to capacity issues. The private manager may be a spouse, other family member or friend. Occasionally more than one private individual, a trustee company or professional person such as a solicitor or accountant, is appointed private manager. The private manager applies for the specific Directions and Authorities required to manage the person’s financial affairs. NSWTG then reviews the private manager's performance against the Directions and Authorities and the functions of a private manager as outlined in the NSW Trustee and Guardian Act 2009. NSWTG provides assistance to private managers by providing a guide to good processes. In the year 2014–2015 Private Management Branch introduced a Short Form of Accounts. This format has received a good response from private managers as it is simple and more user‐friendly. This format has also reduced the delay in the examination of accounts and has enabled NSWTG to provide a more efficient service to private managers.

Management of Seized or Confiscated Assets We manage 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 and livestock. The assets may have to be sold immediately or held and either managed or maintained until further court orders are issued. In 2014–2015 NSWTG managed $14.2 million of these types of assets.


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Dormant Funds Act 1942 The Chief Executive Officer of NSWTG 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 that have become dormant. In the last financial year one dormant fund matter was determined with a value of $19,682.65.

Specialist Services The client services delivered by NSWTG are supported by teams of specialists who provide advice and specialise in the management of different functions and assets of clients. Financial Transactions For Clients NSWTG processed over 1,777,825 financial transactions for clients in the 2014–2015 financial year. This included payment of bills and allowances for clients, payments made under powers of attorney, payments to beneficiaries of estates, payments from trusts and receipt of income ranging from Centrelink benefits to share dividends. Financial Planning NSWTG develops and reviews financial plans for clients to ensure client assets are invested appropriately to meet immediate and long term needs. As at 30 June 2015, approximately $1,517.8 million was invested on behalf of clients based upon recommendations in these plans. This year we developed and reviewed 982 financial plans and 3,997 investment reviews. The Financial Planning Unit contributed over $11.3 million to superannuation on behalf of 171 clients and have a total of $238.7 million invested in superannuation / account based pensions. We manage a further $281 million of our clients’ direct shares, managed funds and term deposits. Client Property NSWTG ensures that client assets are, where possible, secured and protected. The activities undertaken on behalf of financially managed clients in 2014–2015 included:

• Management of 1,753 properties • Management of 260 rental properties • 212 property sales • 41 property purchases • 2589 insurance renewals • 119 completed insurance claims • 553 repairs and maintenance tasks.

Additionally, activities undertaken in relation to trustee services in 2014–2015 included: • 438 properties sold • 5 properties purchased.


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Taxation Services

To fulfil the tax compliance obligations of NSWTG clients, Taxation Services prepared and lodged 8,941 taxation returns in 2014–2015 financial year.

Taxation Services maintains a close relationship with Financial Services Council’s Trustee Working Group and contributes submissions made by the Council to government on proposed tax legislation that impacts the trustee industry. Legal Services Legal Services Branch provides legal services for deceased estates, trusts, powers of attorney clients, civil forfeiture and financially managed clients. Legal staff undertake a range of services, including:

• Drafting of wills and trusts (including special disability trusts) • Approval of distribution of high value estates and trusts • Assessment and review of new business • Legal advice • Debt recovery • Personal injury • Interest in deceased estates, specialising in family provision claims, testamentary

capacity, informal will documents, kin enquiries and will construction • Property matters • Family law • Commercial / corporate matters • Appeals to the NSW Civil and Administrative Tribunal • Representation in Supreme Court Protective List matters.

During the financial year 2014–2015, Legal Services had 3,990 new matters allocated (not including wills). All wills and power of attorney documents that are made in NSWTG are checked to ensure compliance with the appropriate legal formalities. In the last financial year, legal staff check 9,512 wills, 1,471 powers of attorney and 565 enduring guardianship appointments that were made throughout the Client Service Division branch network. Legal Services also conducted face to face interviews for 1,093 wills, 217 powers of attorney and 89 enduring guardianship appointments. The Genealogy Unit conducts searches for next of kin in intestate estates and beneficiaries in wills who may be missing or not easily located. In the last year Genealogy staff located 251 beneficiaries. Disability Advisory Service The Disability Advisory Service provides specialist advice to assist with decision making, planning and communication for and with NSWTG clients. Disability Advisory Service provides disability focused advice on:


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• Purchase, sale and modification of client properties • Sustainability of accommodation • Aids and equipment requests • Connecting clients to community services • Communication strategies • Neglect, abuse and exploitation issues • Threats of suicide, self‐harm and threats to others.

Common Funds The NSW Trustee and Guardian Act 2009 directs NSWTG to operate common funds for clients. Currently, two common funds are operating, one for financial management clients and the other for trustee client matters. We have largely harmonised the operations of the common funds. Our custodian and unit registry manager, JP Morgan Chase, and fund manager, BlackRock Investments, took over key responsibilities for all but one of our portfolios. This process will be completed as soon as it is in the best interests of NSWTG clients to do so. We have commenced the design of a new common fund administration platform, which will assist us to improve client service standards and improve back office efficiencies. NSWTG started to offer trustee clients an enhanced range of investment options in 2014 and will continue to do so in the future. This will be via either one of the existing common funds to provide further diversification. Financial Management Clients Funds The Financial Management Common Fund represents funds owned by clients whose financial affairs are directly managed by NSWTG, a small number of trust clients, and funds of some clients whose affairs are managed by a private manager. It consists of the Access Fund, best described as an interest bearing working account for client transactions, and seven diversified investment funds. To avoid adverse effects from any short to medium term market volatility, four to five years of planned client expenses are held defensively in funds focussed on cash and fixed interest, wherever possible. The balance is invested in growth asset funds to provide for long term client needs. We have continued to invest client funds using low‐cost approaches that minimise fees and provide returns that closely track those of major financial market benchmarks. As a result of the generally strong returns enjoyed on major share markets during the year, the Australian Shares, International Shares and Australian Property Securities Funds all returned above 10% for the year after fees.


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The returns on funds invested in cash or fixed interest investments were impacted by continuing low short term interest rates. These were the Access, Australian Cash, Australian Cash Plus, Australian Fixed Interest and Global Bond funds. As a result, although returns were in line with each fund’s benchmark, they were noticeably lower than a few years ago. NSWTG is investigating ways the returns of the cash oriented funds may be enhanced. Table 4 outlines funds under management, the allocation of these funds, returns achieved over the last year and a comparison with benchmark returns.

Table 4: Financial Management Clients’ Assets under Management and Financial Management Common Fund Investment of Funds 2014-2015

Type of Client $’000

Directly Managed Clients 3,031,454 Privately Managed Clients 77,264

Total net client funds 3,108,718

Represented by:

Funds in Common Fund Excluding Liabilities and

Reserve $'000

Included Investments

under Private

Management $'000

Trustee Clients1

$'000 Client

Return*

Bench mark

Return*

Access Fund 470,465 49,486

‐ 2.2% 2.1%

Australian Cash 157,122 10,598

‐ 2.2% 2.1%

Australian Cash Plus 89,092 739

80,166 2.3% 2.1%

Australian Fixed Interest 45,988 704

68,542 4.9% 5.1%

Australian Shares 285,845 9,114

‐ 5.1% 5.1% Australian Listed Property Securities 64,318 1,675

‐ 19.6% 19.6%

International Bond 6,078 206

‐ 4.9% 5.1%

International Share 174,056 4,742

‐ 14.8% 14.3% Total Financial Management Common Fund 1,292,964 77,264

148,708


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Trustee Funds under Management The Trustee Common Fund represents funds from client matters arising from NSWTG’s role as executor, trustee or attorney. There are two portfolios within this common fund. Initially, funds are placed in the Primary Portfolio. Investment plans are prepared for each client and, if exposure to growth assets is required, monies are invested in the Growth Portfolio. The Primary Portfolio invests in high quality cash deposits, short‐term money market and discount securities, and commercial mortgages, which are generally held to maturity. Since April, the Portfolio has obtained its money market and discount securities holdings by investing through a wholesale unit trust run by new fund manager, BlackRock. The portfolio has an objective of providing an income stream and return of the original capital sum. The Growth Portfolio invests in a blend of Australian and international companies, using a cost‐effective indexed approach. This provides broad diversification. The objective is to achieve capital growth over the medium to long term. The price of units in the Growth Portfolio fluctuates daily depending on the movement of share prices on share markets and on fluctuations in the Australian Dollar exchange rate. Table 5 outlines funds under management, the allocation of these funds, and where appropriate the returns achieved over the last year and a comparison with benchmark returns.

Estimated Client Assets Outside the Common Fund

Asset Value Real Estate 1,110,609 Investments 463,918 Other General Assets 163,963 Total Client Assets Outside the Common Fund 1,738,490 Total Financial Management Common Fund and Assets Outside the Common fund 3,257,426 Less: Trustee Clients 148,708 Total Net Financial Management Clients Funds 3,108,718

* Please note that both Benchmark and Client returns are net of fees (0.50%). There may be variances in individual client returns depending upon the client's entry date into the fund and any new applications or redemptions during the financial year.

1 During the financial year, trustee funds of $148.71M ($138.16M in 2013-14) have been placed in the Financial Management Investment Funds.


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Table 5: Trustee’s Clients Assets Under Management and Trustee Common Fund Investment of Funds

Trustee Clients’ Assets 2014-15 $'000

Deceased Estates 1,057,422 Trusts (including agencies) 626,432 Power of Attorney Services 155,063 Other 19,515 Total Net Trusts 1,858,432

Represented by:

$'000

Client Return*

Bench mark

Return* Funds in Common Fund ‐ Primary Portfolio 969,641 2.0% 1.8% ‐ Growth Portfolio** 214,253 10.6% 10.6% Estimated unrealised client assets ‐ Real Estate 341,522 ‐ Investments *** 298,393 ‐ Mortgages 50,034 ‐ Other personal property 1,424 Total client funds and unrealised assets 1,875,267 Less estimated trust liabilities ‐ Client payables 16,835 Total Net Trusts 1,858,432 *Note that both benchmark and client returns are after fees (0.75%). There may be variances in individual client returns depending on the client's entry date into the fund and any new applications or redemptions during the financial year. ** The Growth Portfolio is targeted to a mix of 70% Australian and 30% international shares. Differences will result if the performances of these two indices vary due to less frequent rebalancing of the fund. ***During the financial year, trustee funds have been placed in the Financial Management Investment Funds for further diversification.


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Information Updates

Newsletters NSWTG uses newsletters to inform clients of relevant news and events. Previously, separate newsletters were sent to trustee, private management and financial management clients however, in 2014–2015 these separate client newsletters were amalgamated to one newsletter TAGconnect. This newsletter is sent out bi‐annually to over 60,000 clients and stakeholders. Over 75% of new trustee clients provided us with permission to contact them and receive TAGconnect. This enables us to inform them of any changes which may impact on our services such as branch relocations or legislative changes. Community Education NSWTG utilises community education to promote the importance of planning for the future by preparing a will, making a power of attorney and appointing an enduring guardian. We also take the opportunity when doing community presentations to clarify our role and function in relation to financially managed clients. In 2014‐2015 staff conducted 76 presentations to various community groups across NSW.

Customer Feedback Client Satisfaction Surveys During 2014–2015 we continued to measure customer satisfaction according to two indices: the Customer Satisfaction Index (CSI) and Process Improvement Satisfaction Index (PISI). Our annual survey of wills clients showed that the Customer Satisfaction Index (CSI) was 95 compared with 96 in the previous year and that the Process Improvement Satisfaction Index (PISI) 93 compared with 94 in 2013–2014 representing decreases of 1 point for both indices. Our beneficiaries’ client survey indices increased from 72 to 75 for the CSI this year and the PISI rose to 68 from 65 the previous year. This represents an increase of 3 points for both indices. The broader client groupings create a combined representative benchmark for customer satisfaction, providing a mean CSI of 85 and a PISI of 81 compared with 84 and 80 in 2013–2014. The same CSI was used to measure the satisfaction of financial management clients. The CSI for directly managed clients was 65 a significant improvement on last year’s 55 while the CSI for private financial managers was 60 a significant decrease from last years’ 72. The average CSI for financial management services was 62.


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Complaints NSWTG received a total of 230 complaints for the financial year 2014–2015 compared with 296 in 2013–14, 349 in 2012‐2013 and 386 in 2011–2012. The consistent decline in the number of formal complaints demonstrates that improvements made to service delivery are having a positive impact on outcomes for clients. Improved handling of complaints at the branch level continues and has resulted in a quicker resolution of issues as they arise. Raw complaint numbers, however, are not an indicator on their own of overa l l improved or decreased service levels. They are just one component. Complaints have decreased significantly ea c h ye ar f ro m 201 1– 201 2 an d NSWTG will continue to look at ways to improve client service and achieve further reductions in coming years. Of the 230 complaints 59% related to service issues, including complaints about communication, delays in making decisions and length of time to receive a response. This is down from 63% the previous year. Complaints about decisions made by NSWTG represented 19% of the total complaints and 18% related to dissatisfaction with policy and procedures. The remaining 3% of complaints related to dissatisfaction with fees and other issues. Internal Reviews of Decisions (IRODs) Decisions made by NSWTG relating to privately managed or directly managed clients are reviewable under the Administrative Decisions Review Act 1997. The first step in the review process is for the client or an interested party to make a request for an internal review of the decision. The internal reviewer can affirm, vary or set aside and make a substitute decision in line with Section 53(3) of the Administrative Decisions Review Act 1997. In 2014–2015 there were 71 requests for IROD received, which is down from 86 in 2013–2014. Of those received, 37 were affirmed, 8 varied, 3 were withdrawn and 23 set‐aside.

NSWTG considers the complaint handling and IROD process to be a very important part of being an open and transparent organisation. Every effort is made to resolve issues in a fair and timely way. NSWTG aims to complete IRODs and responses to complaints within 21 days. In 2014–2015 76% of complaints were completed within 21 days, versus 77% for 2013–2014. This figure has improved significantly from 60% in 2012–2013 where 41% of IRODs were completed within the 21 day timeframe, which is up from 30% for the previous two years. Delays in finalising complaints and reviews of decisions were a result of the complexity of matters, the need for additional information or reports and delays by external parties.


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Financial Performance NSWTG is a self‐funding NSW government agency. Our revenue comes from: • Commissions and fees on estates, trusts and agencies • Fees for managing our clients’ assets • Income on corporate investments • Funding for community service obligations from government Commission and fee rates are periodically reviewed regarding both costs to the organisation and market rates. These are structured to enable the provision of professional trustee and financial management services at a reasonable cost to the people of NSW, irrespective of their wealth. Fees and commissions may be reduced or waived in cases of hardship. The basis for charging and the level of fees is established in the NSW Trustee and Guardian Act 2009 and NSW Trustee and Guardian Regulation 2008. Fees are generally reviewed every five years, following a Regulatory Impact Statement consultation or a review by the Independent Pricing and Regulatory Tribunal (IPART). An IPART review and harmonisation of our fees commenced in March 2014 and has been completed. The report was awaiting response from government in the reporting period. The main challenge affecting our financial performance in 2014–2015 was to achieve our financial targets while meeting our efficiency savings targets required of public sector agencies, by government. High Level Results • Result from operating activities was a surplus of $1.18 million. This includes a

transfer of $5.0 million from the NSWTG Common Fund – Trustee Reserves (former Public Trustee Interest Suspense Account) Schedule 1: sec 16 (1)(c ).

• After adjustment of $9.23 million for a loss resulting from an actuarial valuation

of future fund earnings of defined superannuation benefit funds, the net accounting result for the year was a deficit of $8.04 million.


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Table 6: Key strategies and results for 2014-2015

Key strategy Expected result Result achieved Meet or exceed new business volume and value targets on estates and trusts.

Continued organisational growth.

New estates and trust levels were slightly higher than targets predicted and this correlated to higher revenue.

Meet and exceed investment returns.

Efficient management of corporate financial resources.

Returns on investment of corporate funds were slightly below budget due to current volatility of market conditions.

Increase corporate knowledge on budgetary process/ reporting.

Improved planning and budgetary control.

Budget performance published in Intranet and monitored by all managers.

Manage Labour Cost and other efficiency savings plan targets.

Positive contribution to government savings targets.

Expenditure to budget was well controlled enabling us to achieve all our savings targets.

Manage community service obligations (CSO) arrangement with NSW Treasury.

Clear understanding of a CSO and transparency of cost, funding and reporting of CSOs.

CSO funding remained unchanged. Basis of CSO determination will be taken up by NSWTG with the on‐ going review by IPART.

Effective and efficient management of corporate assets.

Better control and use of resources.

Stocktake completed. Asset Register complete.

2014-2015 Revenue and Expenditure Budget Details of the 2014‐15 recurrent revenue and expenditure budget compared to actual expenses are shown in Table 7 . Also presented is our recurrent budget for the 2015‐16 financial year. Our recurrent budget in 2014‐15 was set at a deficit of $1.33 million. The actual result was a deficit of $8.04 million mainly due to an actuarial adjustment on Defined Benefit Superannuation of $9.23 million.


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Revenue Budget and Results

Our revenue budget was based on trends in previous years, operational plans, business level predictions and in accordance with the NSW Trustee and Guardian Regulation 2008. In summary: • Total revenue was $78.86 million ‐ $0.61 million under budget (1 per cent) • Commissions and fees ‐ over budget by $2.66 million (10 per cent) • Management fees ‐ over budget by $3.26 million (11 per cent) • Funding of $5.11 million was received from NSW Treasury for our community service

obligations – equal to budget • Investment revenue ‐ under budget by $1.18 million, including unrealised gains from

long‐term growth assets. Returns on investment of corporate funds were negative due to lower interest rates during the year

• Revenue includes transfer of $5 million from the Common Fund – Trustee, Reserves (former Interest Suspense Account ‐ Schedule 1: Sec 16 (1)(c)). This is lower than budget by $5.74 million (53 per cent) due to a more favourable result from operational activities.

Expenditure Budget and Results Our expenditure budget provided for CPI increases in personnel services and operating costs, with maintenance and depreciation expenses proportionate to existing assets and capital expenditure program. Personnel service costs were below budget, partly as a result of vacancies arising between staff leaving and a replacement being recruited. Similarly, savings in rent, office supplies, advertising, fees for services and maintenance costs resulted in other operating costs being below budget. Depreciation expenses were below budget due to a deferral of capital works. In summary: • Total operational expenses were $77.67 million ‐ $3.12 million (4 per cent) under

budget, enabling us to achieve our efficiency savings targets • Personnel services costs (before superannuation adjustment) ‐ below budget by $4.32

million (7 per cent) • Other operating costs ‐ over budget by $1.17 million (7 per cent) • Depreciation and amortisation expenses ‐ under budget by $1.47 million (26 per cent) • Expenses include asset impairment loss of $1.15 million • Other expenses include a loss arising from an actuarial valuation to future fund earnings

of defined benefit superannuation funds of $9.23 million. NSWTG does not control this adjustment and therefore cannot accurately budget for the variation.


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Table 7: NSW Trustee & Guardian Recurrent Revenue and Expenditure

Recurrent revenue and expenditure budget

2014-15 Budget ($'000)

2014-15 Actual ($'000)

2015-16 Budget ($'000)

Revenue

Commission and fees 26,257 28,921 27,761 Management fees 29,280 32,536 31,496 Community Service Obligation 5,112 5,112 5,112 Investment revenue 7,555 6,378 4,999 Other revenue 520 911 494 Transfer from Common Fund Reserve Fund 10,744 5000 10,352

Total Revenue 79,468 78,858 80,214

Expenses

Personnel service expenses 57,829 53,511 58,922 Advertising 2,067 2,131 1,920 Fees for services 7,869 9,594 8,840 Office supplies 462 246 420 Lease expenses 3,289 3,264 3,463 Other operating expenses 2,638 2,262 2,781 Maintenance 1,065 1,419 1,390 Depreciation and amortisation 5,576 4,103 5,456 Loss on impairment of assets 0 1,145 0

Total Expenses 80,795 77,675 83,192

Surplus/(Deficit) before Superannuation Adjustment (1,327) 1,183 (2,978)

Superannuation adjustment 0 (9,226) 0

NET RESULT FOR THE YEAR (1,327) (8,044) (2,978)


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NSW Trustee & Guardian Capital Budget Details of our 2014–2015 capital expenditure budget compared to actual expenses are shown in Table 8 including details of our capital budget for 2015–2016. Capital Budget and Results The capital budget for 2014‐2015 planned for an extensive capital works program including the upgrading of computer and building facilities in branch offices and unifying our client management systems to provide better service to our clients. Building renovation and leasehold improvement projects of our Penrith and Wollongong Branches and Client Specialist Centre were completed. Compliance upgrades to three other branches were likewise completed. Upgrade of our computer hardware, data network and IP telephony and record management systems are currently on‐going. The development of a unified client system was commenced and will continue in forward years. Changing our corporate financial system had been carried over to 2015‐2016.

Table 8: Capital Expenditure Budget

Capital expenditure budget

2014-2015 Budget ($'000)

2014-2015 Actual ($'000)

2015-2016 Budget ($'000)

Building fixtures 1,500 515 7,910

Leasehold improvements 810 810 500

Plant and equipment 1,800 2,175 840

Computer hardware 740 883 2,066

Computer software 12,390 800 15,311

17,240 5,183 26,627


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Workforce NSWTG endeavours to sustain a workforce that is able to deliver consistently high levels of service for our clients. The strategic priority is to continue to develop our employees by providing adequate training, supervision, use of technology and access to current policies and procedures.

Table 9: Employees by Category (ANZSCO Major Category)*

*Based on census date FTE data from the Department of Justice (DJ) Principal Agency Workforce Profile. Staff Development and Training During 2014‐2015 NSWTG Learning & Development Unit continued to consolidate financial management and trustee services operational training. NSWTG conducted 156 technical training courses during the reporting period. We have continued to train our accredited course in wills, powers of attorney and enduring guardianship. Currently there are: • 43 staff accredited to witness enduring guardianship instruments in addition to our

legally qualified staff • 113 staff accredited as prescribed witnesses for powers of attorney instruments in

addition to our legally qualified staff • 166 staff accredited will makers, in addition to our legally qualified staff. Also as part

of our continuous improvement program, wills refresher training has been delivered at 9 of our regional branches and will continue in the next financial year.

As part of 2017 and Beyond additional training needs for the organisation were identified and the following training has been already been conducted: • Project management for all NSWTG who are part of the 2017 and Beyond project teams • Financial capability training and coaching for all finance branch’s staff, senior

management and middle management • Leadership program for both senior and middle management has also commenced and

will be completed before the end of 2015. This training should further develop the knowledge, skills and capability of NSWTG staff.


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Projects and Campaigns Memorandum of Understanding /Partnership Agreements NSWTG recognises that to deliver on client outcomes and to support clients to exercise their life choices we need to work across government and non‐government organisations. We work with other agencies and share our expertise to improve client outcomes. Legislative Reviews and Inquiry Submissions To support our clients in exercising their life choices NSWTG provides input into legislative reviews and inquiries. In this way we seek to reflect the interests and needs of our clients in the public policy framework. In 2014‐2015 NSWTG commenced a review of its own legislation. The NSW Trustee and Guardian Act was introduced in July 2009. NSWTG is reviewing the legislation to identify opportunities to improve accessibility and options for clients when making life choices. 2017 and Beyond Transformation The new vision and mission with strategic priorities defined in the 2013‐14 financial year has driven the need for fundamental changes over the ensuing years for NSWTG. A business case was completed for government to consider. It scoped the challenges of creating a single cohesive organisation that meets client needs, with a sustainable surplus from 2016‐2017. By the end of the reporting period NSWTG had completed seven initial projects from the business case. These projects, while integral to the business case, were required regardless of the government decision. The projects commenced were:

• Workforce Planning Project • Digital and Knowledge Management Strategy • Marketing Strategy • Financial Capability Project • Decision Making Model and Delegations • Leadership Project • Cultural Change • Customer Experience Development.

The Workforce Planning Project identified the capability and job family requirements for the future NSWTG and the availability of these capabilities internally and in the market. This plan was distributed throughout NSWTG on The Hive (NSWTG’s intranet). The Digital and Knowledge Management Strategy underpins the changes required to improve client service through better use of technology. The strategy is now in the implementation phase and ensures the coordination of technology tools to maximize ease of use and support for staff.


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The Marketing Strategy aims to targets greater product uptake from promotional activities. It identifies the growth opportunities for NSWTG and will guide activities to exploit them for the best result. The Financial Capability Project focused on improving the ability of all managers to understand, report and manage NSWTG's finances. The outcomes will be informative, easy to understand, financial reports that cascade through the organisation from high level to branch performance. This was supported by training for all senior staff. Once the report formats are complete, there will be further training for all staff and follow up mentoring to embed the new capabilities. The Decision Making and Delegations Project will help us better meet our client's needs through simplifying our decision‐making processes and delegations. A new decision making model has been designed and tested through an expert panel of staff in NSWTG. The model was piloted in a range of branches. Staff were able to comment and provide feedback on the efficacy and impact of the model. Once complete this will form the basis of the review of delegations and guide process changes. NSWTG’s Leadership Project focused on supporting and developing our leaders for the challenges ahead. It provided both training and mentoring to leaders based on their role. This project will continue to be important as NSWTG faces the challenges of the transformation ahead. The Cultural Change Project provides NSWTG with a clear framework for sharing and reinforcing our organisations values. NSWTG, in adopting the values of the NSW public service provided clarity about the behaviours on display. The development of a Customer Experience Statement to guide the importance of high quality client service and display our values was a highlight of the year. A statement that clearly defines the standard of service our clients should expect is a powerful message as we continue to aspire to this standard.

Community Campaigns Planning for the Future: Get it in black & white One of the goals of the NSW Ageing Strategy (2012) is to increase the completion rates of planning ahead documents: wills, powers of attorney, enduring guardianship and advance care plans. ‘Get it in black & white’ is a marketing campaign aimed at raising awareness and increasing completion rates of planning ahead documents. The campaign is designed to start conversations and promote action around the important questions of what happens to you and your assets when you die or become incapacitated. The campaign is designed to encourage people to find out more, take action and take control.


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The advertising campaign started in April and ran through to June utilising creative messages designed to align with key life stages such as getting married, buying property and retirement. Journalist Tracy Spicer was the Get it in black & white ambassador. The campaign media elements utilised were metropolitan and regional television advertising, and press and online advertising. The overall emphasis of the campaign was to create awareness and encourage the completion of planning ahead documents by encouraging people to visit the planning ahead website (www.planningaheadtools.com.au) or call an enquiry line supported by LawAccess NSW. The campaign was also supported by a community education and a stakeholder campaign whereby booklets and flyers were sent to seniors clubs, retirement villages, government information outlets, aged care facilities and health professionals. During the course of the campaign 30,000 information packs were distributed throughout the community. The campaign exceeded its targets with substantial increases in awareness and understanding of planning ahead documents, a 57% increase in visits to the Planning Ahead Tools website and a 38% increase in enquiries to the LawAccess enquiry line during the campaign. It has also generated ongoing enquiries for further information about these documents. Will Safe In October 2014 NSWTG launched the Will Safe. This is a service whereby people who are not currently clients can, for a one off fee, deposit their will and other life planning documents in the NSWTG safe. This service enables people to ensure that important documents are stored securely and are able to be easily accessed when required. Offering secure document storage brings NSWTG into line with other state trustees: the Public Trustee of Western Australia and State Trustees in Victoria both offer will bank services. NSW Seniors Week

NSW Seniors Week is a significant government initiative which provides opportunities for people aged 60 and over to remain active, healthy, engaged and contributing to society. NSWTG has been major sponsor of Seniors Week for over 15 years and takes part in various activities during the week. This year Seniors Week ran from 14‐22 March 2015 with NSWTG focusing on community engagement and promoting the importance of planning ahead by making a will, power of attorney and appointing an enduring guardian. We had a strong presence at the Premier’s Gala Concerts and Seniors Week Expo and participated in events run by the Willoughby and Liverpool Councils to culturally diverse members of the community. Plan Ahead Van As part of NSW Seniors Week a ‘planning ahead van’ manned by staff experienced in will making and estate planning toured around the state as a public relations and community education activity. The van visited 10 regional locations where the public were able to receive information relating to planning ahead documents. The van generated substantial

http://www.planningaheadtools.com.au/


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interest in the areas it visited with over 1000 people being reached through face‐to‐face community education sessions. Don’t DIS my ABILITY Supporter International Day of People with Disability is celebrated annually on 3 December in NSW with the ‘Don’t DIS my ABILITY’ campaign, organised by Family and Community Services. The campaign aims to encourage the community to think and act inclusively towards disabled people. NSWTG was an official supporter of the 2014 campaign. NSWTG utilised this campaign for community education about our disability trusts the importance of completion of life planning documents while you still have capacity. MoneySmart Week NSWTG developed a partnership with Financial Literacy Australia Ltd for MoneySmart Week (1–7 September 2014). MoneySmart Week is an initiative to promote the importance of financial literacy in the community and encourage Australians to take steps to improve their finances. Media coverage of campaign messages was received across press, radio and social platforms, and planning ahead information resources were made available online. Increased access to NSWTG services for will and power of attorney preparation was achieved from a Saturday Plan Ahead Day event by NSWTG branches held as part of MoneySmart Week. Digital Assets Webinar In November 2014 NSWTG held its first community education session delivered by webinar. Over 100 people registered for the session on planning for digital assets by including instructions for them in your will. Webinar participants found the information presented to be extremely useful and felt that the information presented was very important. The webinar was recorded and was available to be downloaded from the NSWTG website at www.tag.nsw.gov.au/webinar Booklets and Publications Guide to Executorship and Probate In July 2014 NSWTG published Guide to Executorship and Probate. This booklet aims to answer some of the commonly asked questions about executorship and explain the role of the executor and the process of administering an estate. It also aims to encourage people to think about who they are appointing as executor and consider appointing a professional executor. The initial print run of Guide to Executorship and Probate was 5,000 and it was promoted via targeted newsletters focusing on the over 55’s and in our newsletter TAGconnect.

http://www.tag.nsw.gov.au/webinar


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Taking Care of Business: Planning Ahead for Aboriginal People in New South Wales A cross sector partnership to deliver information for carers in Aboriginal communities was initiated by NSWTG as part of the NSW Carers Strategy 2014‐2019. Headed by the Department of Family and Community Services, a key project outcome was the development of a culturally appropriate resource for Aboriginal people on planning ahead documents, titled Taking Care of Business. Published by NSWTG in June 2015 the resource aims to encourage Aboriginal people, including carers, to complete wills, powers of attorney and enduring guardianship documents. The partnership adopted a co‐design production process, supported by community consultations, to inform content and design elements and engender engagement aligned to the aims of the resource. The booklet is being promoted through Aboriginal community stakeholder networks. National Disability Insurance Scheme (NDIS) The National Disability Insurance Scheme (NDIS) is the new way of providing individualised support for eligible people with permanent and significant disability, their families and carers. Under the scheme participants develop an individual plan which determines funding for the support they need. NSWTG is involved in NDIS through its capacity as a financial manager and trustee for people with a disability. It works with clients and the National Disability Insurance Agency to develop budgets with the client that support the implementation of an individual’s NDIS plan. NSWTG have been working at a systemic level with issues identified in the trial site and at an individual level with in the site to engage with the new disability system in a way that facilitates the development of successful plans for individuals and identifies any areas of risk in financial management. NSWTG have undertaken several activities to develop our working relationship with NDIS and assist in best practice plan development including: • Data sharing for common clients to ensure best plan is developed • Development of the Financial Information Access Referral (FAIR) form for consistency of

information provision • Training delivered to over 80 NDIS planners and staff • Participation in service provider training about the role of financial managers • Development of tip sheets to assist planners and service providers • Advocacy to have a Plan Support Coordinator to assist in plan development, service

provider choice, quotes and agreements.


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Governance NSWTG governance framework ensures we act in compliance with all legislation and policy and in accordance with best practice. Our Executive Team Chief Executive Officer, Commissioner of Dormant Funds Imelda Dodds, BSocSc, MA Public Policy, Adjunct Professor of Social Work, University of Western Sydney Director Client Services Damon Quinn, BA, MA, MBA (AGSM) Director Specialist Services Tracy Burgess, BA, EMPA, CRM Director Finance and Funds Management Bernie Farrell, CFP, DFP, SA Fin, Dip Fin Mkts Corporate Management Systems NSWTG includes the following divisions: • Client Services • Specialist Services • Finance and Funds Management • Executive and Strategic Services.


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CEOImelda Dodds

Director Specialist ServicesTracy Burgess

Director Client ServicesDamon Quinn

Director Finance & Funds ManagementBernie Farrell

Public GuardianGraeme Smith

Assistant Director NorthElaine Tamblyn

Assistant Director WestJohn Neely

Assistant Director CentralCarol Coombes

Assistant Director Disability Advisory ServicesMeredith Coote

Assistant Director Business Systems Group

Ha Hang

Assistant Director Private Management

Francesca Guido

Assistant Director Fin. PlanMalcolm Pound (Acting)

Assistant Director TaxNick Saverimuttu

Assistant Director PropertyBarrie Lawder (Acting)

Assistant Director LegalRuth Pollard

Assistant Director SouthMatt Kennedy (Acting)

Assistant Director FinancePrecy Asuncion

2017 & BeyondJoan O’Dwyer

Quality & Client RelationsPaul Marshall

Business DevelopmentLiz Argent

Knowledge ManagementSimon Pendergast

NSW Trustee and Guardian

Executive AssistantMary Wilkins

Assistant Director OperationsTheo Hastings

Assistant Director Policy & AdvocacyJustine O’Neill (Acting)

Assistant Director Policy & AdvocacyKathy King (Acting)

The Executive and Senior Officers Committee meet once a month. Directors and assistant directors from each division report on performance against budget, key result areas, business plans and new or ongoing projects. NSWTG Advisory Committee During the reporting period the NSWTG Advisory Committee met four times. The Advisory Committee advises the Chief Executive Officer on strategic issues and change across NSWTG. The external members of the Advisory Committee are: • Inga Baumgartner, is a psychiatry registrar who brings insight into the needs of mental

health clients and the support required from NSWTG particularly in times of crisis. • Edward Birt, has extensive experience in the disability services area with a focus on

person centred approaches to disability support. • Andrew Buchanan, is a professional communicator and former chair of Disability Council

of NSW. He has more than 25 years experience in broadcast programming, operations and management with the ABC.

• John Davies AM, has extensive public sector and not‐for‐profit experience until his retirement from the position of CEO St Johns Ambulance in 2002.

• Robert Haebich, is an experienced lawyer, director of a diversity of companies, manager and bureaucrat. His focus has been to identify and address justice issues and increasingly, those relating to the capacity of individuals and communities to understand, protect and exercise their rights.


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• Richard Lancaster SC, has been a barrister since 1997 and as senior counsel since 2009. His areas of expertise are administrative law, the law of charities and trusts, equity and commercial law, and discrimination and human rights law. He is a member of the Human Rights Committee of the NSW Bar Association.

• Prue Vines, is a Professor at the Faculty of Law, UNSW, Sydney and has been a member of the Law School since 1990. Her major areas of interest are torts and succession law, including end of life decisions and guardianship. She authored Aboriginal Wills Handbook: A practical guide to making culturally appropriate wills for Aboriginal people to improve the rate of Will making among indigenous people.

Independent Investment Advisory Committee The Independent Investment Advisory Committee includes internal and external members to advise the CEO on issues relating to investment of clients’ funds. NSWTG is represented on the committee by the CEO and Directors. The external members are: • Alan Bertram, who had 31 years’ experience in investment activities for AMP until

retirement in 1999 and has since undertaken advisory and consultative roles for AMP and Medibank Private.

• Ted Gifford, who had 36 years’ experience in a wide range of investment activities for AMP until retirement in 2002.

• Michael McGrath, (representing the NSW Treasurer), Principal Advisor Financial Liabilities, Crown Asset and Liability Management, NSW Treasury (until December 2014).

• Jim Dawson, (representing the NSW Treasurer) Director Fiscal and Economic Group. Crown Asset and Liability Management, NSW Treasury (from December 2014).

Transformation Advisory Committee A Transformation Advisory Committee was established to provide oversight and ensure the required rigor for the reform process. This committee is chaired by the Secretary, Department of Justice. The Committee members are:

• Andrew Cappie‐Wood (Chair) • Imelda Dodds (CEO NSWTG) • Julie Elliott • Prue Vines • Ian Neale • Ian Gillespie • Andrew Buchanan.


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Audit and Risk Committee NSWTG has an Audit and Risk Committee in compliance with Treasury Policy TPP15‐03. The committee members are: • Ian Neals: Independent Chair • Paul Crombie: Independent Member • Ian Gallespie: Independent Member • Damon Quinn: Director NSWTG • Graeme Smith: Public Guardian Other Key Committees NSWTG also has a Joint Consultative Committee, Workplace Health and Safety Committee and Information Technology Steering Committee. Our representation on significant external committees is detailed in Appendix 6. Business Plans We have the following corporate plans which inform division and branch plans to ensure a corporate focus on objectives and outcomes: • Operational Plan • Marketing Plan • Risk Management Plan • Business Continuity Plan • Total Asset Management Plan • Strategic Internal Audit Plan • 2017 Business Plan. Compliance Program In 2014–2015 NSWTG continued to develop and improve the governance, risk management and general compliance frameworks. A comprehensive risk management framework was implemented. All NSWTG policies identify risks in non‐compliance. The workflow task management system was reviewed to identify mechanisms for automating controls and risk checks in processes. Risk Management and Audit The NSWTG Risk Management Plan addresses both operational and corporate risks. The management of risks in NSWTG is compliant with Treasury Policies TPP15‐03, TPP14‐05 and TPP12‐03. It is also compliant with AS/NZS ISO 31000 requirements. Major business processes are protected by:


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• Internal audit programs, which ensure effective control systems are in place • External auditing by the NSW Audit Office to assess the adequacy of controls • Fraud control strategy and corruption prevention framework • Oversight by and reporting to the Audit and Risk Committee • Business continuity and contingency plans • Risk management framework.

NSWTG is a member of the NSW Treasury Managed Fund which provides insurable risk protection. Our insurance coverage includes: • Comprehensive motor vehicle • Liability, including public liability and professional indemnity • Corporate properties • Workers Compensation • Miscellaneous. Internal Audit The NSWTG 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 2014–2015, Price Waterhouse Coopers (PwC) were the engaged internal audit contractors. During 2014–2015, PwC and the Chief Audit Executive assessed the adequacy of existing controls and provided recommendations to enhance effectiveness and efficiency of both policy and practice. Business Continuity The Business Continuity Plan was reviewed and tested in 2014–2015. The plan is designed to ensure that in the event of an emergency situation, all critical business systems and processes will continue to operate, enabling the continuation of services.


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Technology In 2014–2015 NSWTG undertook a review of technological requirements to support the organisation and service delivery for the next five years. Specifications for a new client management system and a new online wills system were completed and the tender process commenced. Corporate financial systems were reviewed and are being transitioned into the Department of Justice’s new system. NSWTG upgraded its base operating environment and developed a project plan for electronic document management to streamline processes. Electronic Access and Communication The NSWTG website provides access to information for both the financial management and trustee areas of the organisation. There was a 38% increase in the number of site users with over 214,000 users in 2014–2015 compared with 155,000 users in 2013–2014 indicating the increasing importance of this medium as a point of access and information on the organisation. Over the course of the year there were over 800 online enquiries. Throughout 2014–2015 there were a number of enhancements made to the website to improve accessibility. These changes were to ensure compliance with Web Content Accessibility Guidelines (WCAG) 2.0 Level AA and were in line with web content accessibility targets set down in the Federal Government’s National Transition Strategy. Improvements included: keyboard navigation, increased colour contrast making text easier to read and improving site layout for screen readers.

Future Plans NSWTG is currently awaiting decision from the Government on IPART review of fees and the 2017 and Beyond business case for the transformation of services.


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Public Guardian Annual Report The Public Guardian is legally appointed as a substitute decision maker for people with disability who are unable to make certain decisions themselves. We are appointed by the Guardianship Division of the NSW Civil and Administrative Tribunal (NCAT) or the Supreme Court under the NSW Guardianship Act 1987, to make health or lifestyle decisions for a person as ‘guardian of last resort’.

The Principles of the Act that inform our work promote the rights of people with decision making impairment to be involved in decision making and participate in a normal life in the community.

Major Challenges for the Public Guardian During 2014 - 2015 Workload demands continue to be a challenge for the Public Guardian’s staff. The number of new orders appointing the Public Guardian continues to increase as it has over the past five years. There has been a 10% increase since 2013–2014, with 879 new orders made this financial year. Since the 2010–2011 there has been a 32% increase in the number of new orders appointing the Public Guardian. At the end of the 2014–2015 there were 2096 people under the guardianship of the Public Guardian. This is approximately a 5% increase since 2013‐2014 when there were 1993 people under his guardianship. The total number of people under guardianship managed throughout 2014–2015 was 2964. This is a 4.3% increase from 2013–2014 when 2836 people under guardianship were managed. However there has been a slight decrease in the number of renewed orders and a slight increase in discharged orders. We feel this can be attributed to the Initial Hearing Team who are working to seek alternatives to the appointment of the Public Guardian and we hope for further improvements in 2015–2016.

Table 10: Number of People, New Orders, Renewed Orders and Discharges Under Public Guardianship

Year New orders Renewed

orders Discharges

2010‐2011 598 561 581

2011‐2012 734 625 563

2012‐2013 781 634 617

2013‐2014 791 635 684

2014‐2015 879 627 690 During 2014–2015, the Public Guardian gave evidence at 1272 Guardianship Division hearings in addition to the 1110 the Initial Hearing Team participated in. Altogether this is


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1123 more than last year. During 2014–2015 the Public Guardian made 1350 decisions and 990 medical consents. The most common decision making areas (functions) included in guardianship orders are medical and dental consents, accommodation, services and health care. The Public Guardian is often appointed to make decisions in highly complex or conflicted situations or in circumstances where there are a lack of services and support for the person with a disability.

Table 11: Disability Type as of 30 June 2014 (as a percentage of total number of

people under guardianship)

Disability Percentage(%) Autism 2%

Brain Injury 10% Dementia 19%

Eating Disorder 1% HIV AIDS related 1%

Intellectual Disability 33% Neurological 6%

Other 8% Psychiatric Disorder 20%

Table 12: Number of Major Decisions 2014-2015

Decision Type Number Accommodation 492

Coercive Accommodation 288 Services 601 Access 96

Health Care 198 Restrictive Practices 64

Medical consents 990 Other 7

Total decisions 2736 Emerging Issues Public Guardian’s Decision Making Guideline The Public Guardian reviewed and updated our decision making guideline within the legislative framework to align it more closely with current thinking about rights for people with decision making impairment. The review reflects the Public Guardian’s commitment to respect the autonomy and self‐determination of people under guardianship. The guideline and supporting resources have the intention of improving the guardian’s knowledge of the person, their will and preferences, to guide how guardians determine what is in the welfare and interests of the person under guardianship.


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The guideline will be published on the Public Guardian’s website www.publicguardian.justice.nsw.gov.au in 2015‐2016 and incorporated into our community information resources. The National Disability Insurance Scheme The NDIS has been underway in the Hunter region since July 2013 and the Public Guardian is now the guardian for approximately 200 people participating in the scheme. Our involvement has included attending pre‐planning and planning meetings for clients, reviewing plans, consenting to referrals for additional supports and advocating for the most suitable outcome for our clients. We have committed time and resources to making sure our clients get the best possible outcome. At times we will apply for clients to enter the scheme, meet with clients before the planning process, select providers to provide the service to our client, and, in more complex situations attend several planning meetings. The person centred approach of the NDIS has created flexibility and funding for participants. However, although funding may be accessible, community resources are not always available to meet the needs of the participant. As the NDIS expands, the Public Guardian sees significant issues needing to be addressed including meeting the high demand for services that can support participants; responses and support for people in urgent crisis situations; the availability of experienced services to support people with challenging and complex needs; the availability of housing; and the lack of support under the NDIS for people with disability aged over 65 with disabilities who are unsuitable for Aged Care services.

Devolution The Public Guardian has been involved in the closure of the Stockton Centre during 2014–2015 as part of the devolution of large residential centres. Our guardians have attended all planning meetings for the 71 of our clients involved in this transition. Each resident has a planner who is also a planner for National Disability Insurance Agency (NDIA). We have been heavily involved in planning processes, collaborating with clients to ensure their will and preferences are met in this planning stage. We are also working with planners, advocating for our clients to have the right supports that will provide an improved quality of life. We hope advocating for these supports early in the planning process will mean these clients have some stability when they relocate to their new accommodation. Kanangra residential centre and Tomaree Lodge are also set to devolve and we have 32 people under guardianship living in these centres. The Public Guardian is a stakeholder in Kanagra’s supported decision making project and will be involved in the transition planning process in 2015–2016. The Initial Hearing Team (IHT) In March 2014 the Public Guardian introduced the Initial Hearing Team (IHT). This small team of Principal Guardians works to enhance our collaboration with the Guardianship Division of the NSW Civil and Administrative Tribunal (NCAT) in participating in initial


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hearings. The aim of the team is to work with the Guardianship Division to improve the availability of information when guardianship applications are being considered. The Public Guardian usually attends Guardianship Division hearings only after we have been appointed, for review hearings. The IHT initiative identifies matters awaiting hearing where we feel the Public Guardian could inform the process. In these cases IHT guardians will attend an initial guardianship hearing to give advice about how a guardian may or may not be able to achieve outcomes for the person and will make reference to the Principles of the Guardianship Act and available resources. The team advises families, services providers and tribunal members about the role of the Public Guardian, how we work and make decisions and possible alternatives to guardianship that applicants may not have considered. The team has developed a strong relationship with the Guardianship Division of the NCAT and is refining our Guardianship practice in particular our ability to work with NCAT on complex matters. During 2014–2015 the IHT received and reviewed 2369 applications and participated in 47% of the hearings or 1110 hearings. The Guardianship Division appointed either the Public Guardian or a private guardian in 1187 instances during the 12 month period. The Public Guardian was appointed 56% of the time or on 666 instances and a private guardian was appointed 44% of the time or on 521 instances. At the commencement of the IHT, the Public Guardian was appointed 65% of the time and a private guardian was appointed 35%. We will continue to monitor the success of the IHT. This will be measured through a decrease in requests for early review hearings, an increase in non‐reviewable guardianship orders and an overall decrease in the appointment of guardians where alternatives are possible. The IHT will continue in 2015 ‐2016. 'Get it Black and White' campaign The Get it black and white campaign continues to be a significant joint initiative between the Public Guardian, NSWTG and Family and Community Services. It promotes the Planning Ahead Tools website www.planningaheadtools.com.au and encourages everyone in NSW to plan ahead in order to exercise choice, control and avoid any unnecessary legal processes in the future. The initiative aligns directly with the NSW Ageing Strategy. The campaign encourages people to complete the four tools of planning ahead: a will, power of attorney, enduring guardianship and an advance care plan. The Public Guardian is rolling out a community education campaign with NSWTG where multiple service providers including health care practitioners, carers, educators, key industry bodies and the general public will be targeted for education and linked to their local NSWTG branch or local solicitor. The Public Guardian has specific expertise in enduring guardianship, supporting Private Guardians, Person Responsible and the importance of planning ahead around End Of Life care. This links in well with NSWTG extensive expertise in all trustee services. The 'Get it Black and White' campaign also includes an ongoing review and enhancement of the 'Planning Ahead Tools' website and community education. The campaign promotes

http://www.planningaheadtools.com.au/


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alternatives to coming under the Public Guardian's guardianship and encourages personal choice and responsibility by planning ahead. Young People Leaving Care (YPLC) Protocol The YPLC protocol is an inter‐government agreement between Family and Community Services (FACS) (Community Services and Ageing Disability and Home Care) and the NSW Public Guardian. During this financial year the 2011 protocol was revised and released in May 2015. The purpose of the protocol is to assist the early involvement of the Public Guardian in transition planning for a young person with a disability from the care of Community Services to adult disability services. The protocol also facilitates interagency collaboration between the parties to achieve a successful transition for a young person with a disability leaving care. Part of the protocol review acknowledges the devolution of Out of Home Care (OOHC) services from FACS to Non‐Government Organisations (NGO’s). Peak welfare agencies representing providers of out of home services have a greater involvement in the protocol. The Public Guardian will continue this partnership and will provide targeted information to NGO’s to build their understanding of guardianship and the Public Guardian’s role in advocating for young people leaving care. Staff Training All Staff Days Each year Public Guardian staff attend All Staff Days. These information events provide information to support guardianship practice. The All Staff Day held in October 2014 had the theme of supporting decision making. The Information and Support team hosted the day that provided an overview of the history of guardianship and financial management. It was an opportunity for internal discussion and reflection on the Public Guardian’s practices in light of the United Nations Convention on the Rights of Persons with Disabilities (UNCPRD) and the sector’s movement towards supported decision making. In May 2015 the Northern guardianship team facilitated an All Staff Day focusing on the National Disability Insurance Scheme. The team shared their experience of working with people under guardianship who are participants in the NDIS and what role guardianship has in this system. Staff heard from guest speakers from the NSW & National Council for Intellectual Disability (CID NSW) and the National Disability Insurance Agency. Supervision Coaching This year the Public Guardian engaged the services of Mary Jo McVeigh, CEO of Cara House, to coach managers and principal guardians in the practice of supervision. The coaching commenced in May 2015 and will continue into 2015–2016. In line with recent Public Sector reforms we are reviewing our supervision structures to ensure all staff have access to


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quality supervision that supports, educates and meets the administrative needs of the agency. Other Staff Training This year Ana Neale, Director of Analana provided training on creating person centred histories. Maria Andreadis and Elle Marrone, speech pathologists from Ageing Disability and Home Care (ADHC) also spoke to staff about communicating with people with disability. These training opportunities fit into our approach to decision making and equip guardians with skills to better understand a person’s will and preference. In 2015–2016 we will continue training around the implementation of the NDIS, Aged Care Reforms and training in relation to performance management and Public Sector reforms. Community Information Under Section 79 of the Guardianship Act the Public Guardian has the responsibility to help the community understand guardianship and apply the principles of the Act. One way we do this is through our telephone and email information service, which responded to 3659 requests for information during 2014–2015. We also produce a range of publications for people under guardianship, private and enduring guardians, medical practitioners and the community. This year there were 471 requests for publications. The Public Guardian Information and Support team also provide free information sessions to explain the role of the Public Guardian, alternatives to guardianship and encourage people to plan ahead for their future decision making by appointing an enduring guardian. This financial year we provided 93 education sessions to community groups and service providers in the metropolitan and regional areas of NSW. This is 17 more sessions than 2013–2014. Support for Private and Enduring Guardians The Private Guardian Support Unit (PGSU) provides information and support to private and enduring guardians in NSW. Guardians may be appointed by the Guardianship Division, or a person with capacity can appoint an enduring guardian to make decisions for them in the future if they lose the ability to make their own decisions. The PGSU helps guardians understand their legal role and responsibilities. We provide support to guardians by attending meetings and guardianship hearings with them. We also assist guardians with writing letters, and providing suggestions for further support. This year there was a total of 174 contacts from private and enduring guardians. There were 860 new appointments of private guardians, this is 62 more than the previous year. At the end of 2014–2015 there were 2238 private guardians.


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Complaint Management and Reviews of Decisions During 2014–2015 we received 63 complaints, which includes 31 complaints made to members of NSW Parliament. This is six more than 2013–2014. The complaints, mainly made by family and friends of people under guardianship, were about the way we communicate and our decision making processes. There were 24 requests for reviews of decision, ten less than last year. It is predominantly family members of people under guardianship who sought the reviews, and the types of decisions reviewed are generally accommodation and access decisions. There were 24 requests for reviews of decision, six less than the previous year. The reviews mainly related t o accommodation and access decisions. Eighteen decisions were upheld, and five of these were upheld with a condition or recommendation from the reviewing officer. One decision was set aside, one was declined, and one review was still underway at the time of writing this report. If a person is dissatisfied after our internal review they have the right to seek an external review through the Administrative and Equal Opportunity Division of N S W Civil and Administrative Tribunal (NCAT). None of o u r decisions were reviewed externally during 2014‐2015. Staffing

Table 13: Employees by Category (ANZSCO Major Category*)

*Based on census date FTE from the Department of Justice (DJ) Principal Agency Workforce Profile


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Public Guardian Budget and Expenditure The operations of the Public Guardian are funded by a grant from the government. Result from operating activities for 2014‐15 was a surplus of $1.35 million. The Public Guardian 2014‐15 Budget is consolidated with the NSWTG Budget.

Table 14: PG budget and actual expenditures for 2014-15and budget for 2015-16

2014-15 Budget

$'000

2014-15 Actual $'000

2015-16 Budget

$'000

OPERATING REVENUE Investment Income 180 176 120 Government funding 8,119 9,713 8,322 Miscellaneous Revenue 0 5 0 TOTAL OPERATING REVENUE 8,299 9,894 8,442

OPERATING EXPENSES Personnel service expenses 6,772 6,696 8,290 Advertising 33 18 33 Fees for Services 922 867 981 Postal and telephone 76 47 74 Lease expense 510 439 508 Other operating expenses 261 167 323 Maintenance 30 8 31 Depreciation and amortisation 95 114 102 TOTAL OPERATING EXPENSES 8,699 8,356 10,342

Surplus/(Deficit) from Operational Activities (400) 1,538 (1,900)

Superannuation Adjustment 0 (185) 0

NET RESULT FOR THE YEAR (400) 1,353 (1,900)

CAPITAL EXPENDITURE 60 50 6


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Internal Audit and Risk Management Attestation for the 2014:-201 Financial Year for NSW Trustee and Guardian

I, Graeme Smith. am of the opinion that the Public Guardian Division of NSW Trustee and Guardian has internal audit and risk management processes in place that are, in all material respects, compliant with the core requirements set out in Treasury Circular NSW TC 09/08 Internal Audit and Risk Management Policy. These processes provide a level of assurance that enables the Public Guardian Division to understand, manage and satisfactorily control risk exposures.

Graeme Smith

8 October 2015 Public Guardian


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Future Directions

Supported decision making (SDM) is an important part of building the capacity of people with disability to develop and exercise greater choice and control in the transition to the NDIS. Supporting people with disability to make their own decisions may also offer alternatives to guardianship and financial management in NSW.

The Public Guardian is partnering with the department of Family and Community Services and NSWTG in the Supported Decision Making Phase 2 Project, which focuses on support for financial decision making. The project will address findings from the 2012–2014 Supported Decision Making Pilot and aims to build the capacity of people with disability to make informed decisions independently or with their chosen paid and unpaid. It will also build on the capacity of service providers and the community to assist and support people to make their own decisions. The project will work towards developing our understanding of how Supported Decision Making is best embedded within the policy and practice of organisations. This project, funded for 12 months, will be underway by late 2015.

A priority for our office this financial year was to review our approach to decision making. In June 2015 we introduced our new decision making model to staff. The model incorporates the principles of supported decision making and more collaboration with people under guardianship. When this collaboration is not possible we will collect evidence about the persons previously expressed will and preference. In 2015–2016 we will monitor and build on our decision making guideline. We hope to lead by example through our work and education to the community, private guardians and the disability sector educating.

The Public Guardian continues to support clients who are participants in the NDIS.

In the year ahead we will continue our involvement and monitor the potential implications of the NDIS. This includes the ongoing impact on our workload as residents of large residential centres enter the scheme and further sites are launched. It is still unclear how some of our clients will be included in the NDIS, including people aged 65 and over, people involved in the criminal justice system, and people with challenging and complex needs.

In the coming year we need to look at our own processes and how these can be improved to gain a better understanding our client’s needs earlier in the process to ensure good advocacy occurs during the NDIS planning process. We will also provide further training opportunities for our staff to develop their understanding of the NDIS system and processes.

Graeme Smith

8 October 2015 Public Guardian


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Contact Details

Head Office and Western Regional Office

Justice Precinct Offices 160 Marsden Street, Parramatta NSW 2150 Locked Bag 5116 Parramatta NSW 2124 DX 1335 SYDNEY Telephone: 02 8688 2650 Facsimile: 02 8688 9797 NSW STD callers: 1800 451 510 TTY: 1800 882 889

Southern Regional Office

Level 2 Downing Centre 143‐147 Liverpool Street, Sydney NSW 2000 PO Box 20487 World Square Sydney 1235 DX 1335 SYDNEY Telephone 02 9287 7660 NSW STD callers: 1800 451 428 Facsimile: 9287 7355

Northern Regional Office

Level 3, 4 Watt Street, Gosford NSW 2250 PO Box 487 Gosford NSW 2250 DX 7229 GOSFORD Telephone: 02 4320 4888 NSW STD callers: 1800 451 694 Facsimile 02 4320 4818 [email protected] www.publicguardian.justice.nsw.gov.au

mailto:[email protected]


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Financial Statements TABLE OF CONTENTS

Independent Auditor's Report

57

Statement in Accordance with Section 41C Public Finance and Audit Act 1983

59

Statement of comprehensive income for the year ended 30 June 2015

60

Statement of financial position as at 30 June 2015

61

Statement of changes in equity for the year ended 30 June 2015

62

Statement of cash flows for the year ended 30 June 2015

63

Notes to the financial statements for the year ended 30 June 2015

1 Summary of Significant Accounting Policies

64

2 Expenses Excluding Losses

76

3 Revenue

77

4 Gain / (Loss) on Disposal

79

5 Other Gains/ (Losses)

79

6 Current Assets - Cash and Cash Equivalents

79

7 Current Assets - Receivables

80

8 Current/Non-Current Assets - Financial Assets at Fair Value

80

9 Non-Current Assets - Property, Plant and Equipment

81

10 Intangible Assets

83

11 Fair value measurement of non-financial assets

85

12 Current Liabilities - Payables

85

13 Current/Non-Current Liabilities - Provisions

86

14 Commitments for Expenditure

87

15 Contingent Liabilities and Contingent Assets

87

16 Budget Review

88

17 Reconciliation of Cash Flows from Operating Activities to Net Result

89

18 Common Fund Assets

89

19 Financial Instruments

90

20 Events after Reporting Date

97


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NSW TRUSTEE AND GUARDIAN

STATEMENT IN ACCORDANCE WITH

SECTION 41C PUBLIC FINANCE AND AUDIT ACT 1983 Pursuant to Section 41C of the Public Finance and Audit Act 1983, I declare that in my opinion:

a) The accompanying financial statements exhibit a true and fair view of the financial position and transactions for the year ended 30 June 2015;

b) The financial statements have been prepared in accordance with the provisions of the Public Finance and Audit Act 1983 and the Public Finance and Audit Regulation 2015 and the Treasurer’s Directions and NSW Treasury Circulars; and

c) As at the date of this statement, I am not aware of any circumstances, which would render any particulars included in the financial statements to be misleading or inaccurate.

Imelda Dodds Chief Executive Officer

29 October 2015


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Start of Audited Financial Statements



Actual Budget Actual

2015 2015 2014

Notes $'000 $'000 $'000

Expenses excluding losses Operating expenses

Personnel services 2(a) 69,619 64,601 61,940

Other operating expenses 2(b) 20,447 19,222 17,859

Depreciation and amortisation 2(c) 4,217 5,671 3,484 Total Expenses excluding losses

94,283 89,494 83,283

Revenue Sale of services 3(a) 61,457 55,537 60,119

Investment revenue 3(b) 6,554 7,735 6,287 Grants and contributions 3(c) 15,194 13,231 13,761 Other revenue 3(d) 5,547 11,264 7,410 Total Revenue

88,752 87,767 87,577

Gain / (Loss) on disposal 4 (6) 0 (11) Other Gains/(Losses) 5,10 (1,154) 0 (11)

Net result

(6,691) (1,727) 4,272

Other comprehensive income

Items that will not be reclassified to net result Net Increase/(decrease) in property, plant and

equipment revaluation surplus 9 2,041 0 2,342 Total other comprehensive income

2,041 0 2,342

TOTAL COMPREHENSIVE INCOME

(4,650) (1,727) 6,614

The accompanying notes form part of these financial statements.


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2015 2015 2014

Notes $'000 $'000 $'000

ASSETS Current Assets Cash and cash equivalents 6 28,947 15,227 31,267

Receivables 7 24,157 24,812 22,295 Financial assets at fair value 8(a) 6,000 0 0 Total Current Assets

59,104 40,039 53,562

Non-Current Assets Financial assets at fair value 8(b) 45,149 44,956 45,394

Property, plant and equipment 9

- Land and buildings

23,684 19,398 22,188

- Plant and equipment

13,689 17,012 12,289

Total property, plant and equipment

37,373 36,410 34,477 Intangible assets 10 2,665 10,982 3,211 Total Non-Current Assets

85,187 92,348 83,082

Total Assets

144,291 132,387 136,644

LIABILITIES Current Liabilities Payables 12 6,617 8,403 5,776

Provisions 13(a) 25,461 22,690 23,833 Total Current Liabilities

32,078 31,093 29,609

Non-Current Liabilities Provisions 13(b) 79,094 51,563 69,702

Other 13(c) 487 51 51 Total Non-Current Liabilities

79,581 51,614 69,753

Total Liabilities

111,659 82,707 99,362 Net Assets

32,632 49,680 37,282

EQUITY Reserves

5,641 1,258 3,600

Accumulated funds

26,991 48,422 33,682 Total Equity

32,632 49,680 37,282



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Notes

Accumulated Funds

Asset Revaluation

Surplus

Total

$'000 $'000 $'000

Balance at 1 July 2014

33,682 3,600 37,282

Net result for the year

(6,691) 0 (6,691) Other comprehensive income:

Net increase/(decrease) in property, plant and equipment 9 0 2,041 2,041

Total other comprehensive income

0 2,041 2,041 Total comprehensive income for the year

(6,691) 2,041 (4,650)

Balance at 30 June 2015

26,991 5,641 32,632

Balance at 1 July 2013

39,100 1,258 40,358

Changes in accounting policy

(9,690) 0 (9,690) Restated total equity at 1 July 2013

29,410 1,258 30,668

Net result for the year

4,272 0 4,272 Other comprehensive income:

Net increase/(decrease) in property, plant and equipment 9 0 2,342 2,342

Total other comprehensive income

0 2,342 2,342 Total comprehensive income for the year

4,272 2,342 6,614

Balance at 30 June 2014

33,682 3,600 37,282


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2015 2015 2014

Notes $'000 $'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIES Payments

Personnel Services

(58,362) (64,601) (58,131)

Operating expenses

(19,597) (19,222) (16,418)

Other

(5,301) (5,441) (4,260)

Total Payments

(83,260) (89,264) (78,809) Receipts

Sale of services

61,505 55,537 63,895

Investment revenue received

674 2,782 927

Grants and contributions

15,194 13,231 13,761

Other

9,199 16,705 10,416

Total Receipts

86,572 88,255 88,999

NET CASH FLOWS FROM OPERATING ACTIVITIES 17 3,312 (1,009) 10,190

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of investments, plant and equipment

0 6,386 6

Purchase of investments

0 (1,433) 0

Purchases of land and buildings, plant and equipment and infrastructure systems

(4,599) (7,850) (4,647)

Other

(1,033) (9,390) (1,409)

NET CASH FLOWS FROM INVESTING ACTIVITIES

(5,632) (12,287) (6,050)

NET CASH FLOWS FROM FINANCING ACTIVITIES

0 0 0

NET INCREASE/ (DECREASE) IN CASH

(2,320) (13,296) 4,140 Opening cash and cash equivalents

31,267 28,523 27,127

CLOSING CASH AND CASH EQUIVALENTS 6 28,947 15,227 31,267



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Notes to the financial statements for the year ended 30 June 2015 1 Summary of Significant Accounting Policies (a) Reporting entity NSW Trustee and Guardian is a NSW government entity. NSW Trustee and Guardian is a not-for-profit entity (as profit is not its principal objective) and it has no cash generating units. The reporting entity is consolidated as part of the NSW Total State Sector Accounts. NSW Trustee and Guardian as a reporting entity, comprises all the operating activities under its control. NSW Trustee and Guardian includes the financial results of the operations of the Public Guardian. The Public Guardian is separate in its functions but reports to the Chief Executive Officer of NSW Trustee and Guardian. These financial statements of NSW Trustee and Guardian for the year ended 30 June 2015 have been authorised for issue by Imelda Dodds, Chief Executive Officer on 17 September 2015. (b) Basis of preparation NSW Trustee and Guardian's financial statements are general purpose financial statements which have been prepared on an accrual basis and in accordance with: • applicable Australian Accounting Standards (which include Australian Accounting

Interpretations) • the requirements of the Public Finance and Audit Act 1983 and Public Finance and

Audit Regulation 2015 and • the Financial Reporting Directions published in the Financial Reporting Code for

NSW General Government Sector Entities or issued by the Treasurer.

Property, plant and equipment and financial assets at 'fair value through profit or loss' and available for sale are measured at fair value. Other financial statement items are prepared in accordance with the historical cost convention except where specified otherwise.

Judgements, key assumptions and estimations management has made are disclosed in the relevant notes to the financial statements.

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 Australian Accounting Standards, which include Australian Accounting Interpretations.


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Notes to the financial statements for the year ended 30 June 2015 (d) Insurance NSW Trustee and Guardian’s insurance activities are conducted through the NSW Treasury Managed Fund Scheme of self insurance for Government entities. The expense (premium) is determined by the Fund Manager based on past claims experience. (e) Accounting for the Goods and Services Tax (GST) Income, expenses and assets are recognised net of the amount of GST, except that:

• the amount of GST incurred by NSW Trustee and Guardian as a purchaser that is not recoverable from the Australian Taxation Office is recognised as part of an asset's cost of acquisition or as part of an item of expense and

• receivables and payables are stated with the amount of GST included. Cash flows are included in the statement of cash flows on a gross basis. However, the GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the Australian Taxation Office are classified as operating cash flows. (f) Income recognition Income is measured at the fair value of the consideration or contribution received or receivable. Comments regarding the accounting policies for the recognition of income of NSW Trustee and Guardian are discussed below. (i) Sale of goods

Revenue from the sale of goods is recognised as revenue when NSW Trustee and Guardian transfers the significant risks and rewards of ownership of the assets. (ii) Rendering of services

Revenue is recognised when the service is provided or by reference to the stage of completion (based on labour hours incurred to date).

• Commissions and fees

Commissions and fees for trustee matters are recognised at the time the charges are levied. The rates and timing of charges are governed by the NSW Trustee and Guardian Regulation 2008. Fees from clients are recognised on an accrual basis, when service is provided. NSW Trustee and Guardian charges a percentage value of the total value of chargeable assets in a client’s estate for the financial management of that estate. Fees include management fees, investment fees, and other fees while retaining NSW Trustee and Guardian’s power to recover additional costs incurred, where applicable, from the Common Fund, refer to Note 18.


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(iii) NSW Government contributions and grants

NSW Government contributions include funding for the operations of the Public Guardian and other grants received from the NSW Government for the current year. These are recognised as revenue when NSW Trustee and Guardian obtains control over the assets comprising the contributions. Control over contributions is normally obtained upon the receipt of cash. Community service obligation - NSW Trustee and Guardian receives a grant from Treasury to enable access by the community to professional executor or Will services, professional services in management of non-commercial trusts and professional financial management services for those with low-income or limited assets. The grant is recognised as revenue when NSW Trustee and Guardian obtains control over the assets comprising the grant. Control is normally obtained upon receipt of cash. (iv) Common Fund transfers

Transfers from the Common Fund Reserves are recognised in the period in which they are determined to be receivable by NSW Trustee and Guardian. (v) Investment revenue

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement. Distribution received is recognised as revenue at the time of distribution. This is re-invested in units during the reporting period to which the distribution relates, refer to Note 1(g)(xii). (g) Assets

(i) Acquisitions of assets

Assets acquired are initially recognised at cost. 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. Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value at the date of acquisition. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at measurement date. Where payment for an asset is deferred beyond normal credit terms, its cost is the cash price equivalent; i.e. deferred payment amount is effectively discounted over the period of credit.


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(ii) Capitalisation thresholds Property, plant and equipment, and intangible assets costing $10,000 and above individually (or forming part of a network costing more than $10,000) are capitalised.

(iii) Revaluation of property, plant and equipment Physical non-current assets are valued in accordance with the 'Valuation of Physical Non-Current Assets at Fair Value' Policy and Guidelines Paper (TPP 14-01). This policy adopts fair value in accordance with AASB 13 Fair Value Measurement, AASB 116 Property, Plant and Equipment. Property, plant and equipment is measured at the highest and best use by market participants that is physically possible, legally permissible and financially feasible. The highest and best use must be available at a period that is not remote and take into account the characteristics of the asset being measured, including any socio-political restrictions imposed by government. In most cases, after taking into account these considerations, the highest and best use is the existing use. In limited circumstances, the highest and best use may be a feasible alternative use, where there are no restrictions on use or where there is a feasible higher restricted alternative use. Fair value of property, plant and equipment is based on a market participant's perspective, using valuation techniques (market approach, cost approach, income approach) that maximise relevant observable inputs and minimise unobservable inputs. Also refer to Note 9 and Note 11 for further information regarding fair value. NSW Trustee and Guardian revalues land and buildings every three years and plant and equipment at least 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 31 March 2015 and was based on an independent assessment. Non-specialised assets with short useful lives are measured at depreciated historical cost as an approximation of fair value. NSW Trustee and Guardian has assessed that any difference between fair value and depreciated historical cost is unlikely to be material. When revaluing non-current assets using the cost approach, the gross amount and the related accumulated depreciation are separately restated. For other assets valued using other valuation techniques, any balances of accumulated depreciation at the revaluation date in respect of those assets are credited to the asset accounts to which they relate. The net asset accounts are then increased or decreased by the revaluation increments or decrements. Revaluation increments are credited directly to revaluation surplus, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in the net result, the increment is recognised immediately as revenue in the net result.


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Notes to the financial statements for the year ended 30 June 2015 Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in the revaluation surplus in respect of the same class of assets, they are debited directly to the revaluation surplus. As a not-for-profit entity, revaluation increments and decrements are offset against one another within a class of non-current assets, but not otherwise. Where an asset that has previously been revalued is disposed of, any balance remaining in the revaluation surplus in respect of that asset is transferred to accumulated funds.

(iv) Impairment of property, plant and equipment As a not-for-profit entity with no cash generating units, AASB 136 Impairment of Assets is unlikely to arise. As property, plant and equipment is carried at fair value, impairment can only arise in the rare circumstances such as where the costs of disposal are material. Specifically, impairment is unlikely for not-for-profit entities given that AASB 136 modifies the recoverable amount test for non-cash generating assets of not-for-profit entities to the higher of fair value less costs of disposal and depreciated replacement cost, where depreciated replacement cost is also fair value.

(v) Depreciation of property, plant and equipment

Depreciation is provided for on a straight-line basis for all depreciable assets so as to write off the depreciable amount of each asset as it is consumed over its useful life to NSW Trustee and Guardian. All material separately identifiable components of assets are depreciated over their useful lives. Land is not a depreciable asset. The estimated useful lives of the major classes of assets of NSW Trustee and Guardian are as follows: Years Building 13-39 Computer equipment 3-5 Leasehold Improvements and office refurbishments 2-10 Plant and equipment 4-20

Leasehold improvements are amortised over the unexpired period of the lease or the estimated useful life of the asset, whichever is shorter.

(vi) Major inspection costs When each major inspection is performed, the labour cost of performing major inspections for faults is recognised in the carrying amount of an asset as a replacement of a part, if the recognition criteria are satisfied.


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(vii) Restoration costs The estimated cost of dismantling and removing an asset and restoring the site is included in the cost of an asset, to the extent it is recognised as a liability.

(viii) Maintenance Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement of a part or component of an asset, in which case the costs are capitalised and depreciated.

(ix) Leased assets A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of the leased assets, and operating leases under which the lessor does not transfer substantially all the risks and rewards.

Where a non-current asset is acquired by means of a finance lease, at the commencement of the lease term, the asset is recognised at its fair value or, if lower, the present value of the minimum lease payments, at the inception of the lease. The corresponding liability is established at the same amount. Lease payments are allocated between the principal component and the interest expense. Operating lease payments are recognised as an expense on a straight-line basis over the lease term.

(x) Intangible Assets NSW Trustee and Guardian recognises intangible assets only if it is probable that future economic benefits will flow to NSW Trustee and Guardian and the cost of the asset can be measured reliably. Intangible assets are measured initially at cost. Where an asset is acquired at no or nominal cost, the cost is its fair value as at the date of acquisition.

All research costs 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 NSW Trustee and Guardian’s intangible assets, the assets are carried at cost less any accumulated amortisation and impairment losses.

NSW Trustee and Guardian’s intangible assets are amortised using the straight line method over 3-16 years.

Intangible assets are tested for impairment where an indicator of impairment exists. If the recoverable amount is less than its carrying amount, the carrying amount is reduced to recoverable amount and the reduction is recognised as an impairment loss.


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(xi) Loans and Receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. These financial assets are recognised at fair value, usually based on the transaction cost, or face value. Subsequent measurement is at amortised cost using effective interest method, less an allowance for any impairment of receivables. Any changes are recognised in the net result for the year when impaired, derecognised or through the amortisation process. Short term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.

(xii) Investments Investments are initially recognised at fair value plus, in the case of investments not at fair value through profit or loss, transaction costs. NSW Trustee and Guardian determines the classification of its financial assets after initial recognition and, when allowed and appropriate, re-evaluates this at each financial year end. The Hour-Glass Investment Facilities are designated at fair value through profit or loss using the second leg of the fair value option under AASB 139.9(b)(ii); i.e. these financial assets are managed and their performance is evaluated on a fair value basis. NSW Trustee and Guardian funds invested in the Hour Glass Investment Facilities cover NSW Trustee and Guardian's liabilities and are designated at fair value through profit and loss. Performance is evaluated on a fair value basis consistent with NSW Truatee and Guardian's risk management and investment strategy. Information about these assets is provided internally on that basis to NSW Trustee and Guardian’s key management personnel. The movement in the fair value of the Hour-Glass Investment Facilities incorporates distributions received as well as unrealised movements in fair value and is reported in the line item 'investment revenue'. The fair value of investments that are traded at fair value in an active market is determined by reference to quoted current bid prices at the close of business on the statement of financial position date.

(xiii) Impairment of financial assets All financial assets, except those measured at fair value through profit and loss, are subject to an annual review for impairment. An allowance for impairment is established when there is objective evidence that NSW Trustee and Guardian will not be able to collect all amounts due.

For financial assets carried at amortised cost, the amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the impairment loss is recognised in the net result for the year.


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Notes to the financial statements for the year ended 30 June 2015 Any reversals of impairment losses are reversed through the net result for the year, where there is objective evidence. Reversals of impairment losses of financial assets carried at amortised cost cannot result in a carrying amount that exceeds what the carrying amount would have been had there not been an impairment loss.

(xiv) Derecognition of financial assets and financial liabilities

A financial asset is derecognised when the contractual rights to the cash flows from the financial assets expire; or if NSW Trustee and Guardian transfers the financial asset: • where substantially all the risks and rewards have been transferred or • where NSW Trustee and Guardian has not transferred substantially all the risks and

rewards, if NSW Trustee and Guardian has not retained control. Where NSW Trustee and Guardian has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of NSW Trustee and Guardian’s continuing involvement in the asset. A financial liability is derecognised when the obligation specified in the contract is discharged or cancelled or expires.

(xv) Other Assets

Other assets are recognised on a historic cost basis.

(h) Liabilities

(i) Payables

These amounts represent liabilities for goods and services provided to NSW Trustee and Guardian and other amounts. Payables are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method. Short-term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.

(ii) Personnel Services Expenses and Provisions (a) Personnel Services Expenses The Department of Justice provides employees to NSW Trustee and Guardian to enable it to carry out functions under the NSW Trustee and Guardian Act 2009. The expense and liabilities due to the Department of Justice are classified as “Personnel services” in the Statement of comprehensive income and “Provisions” in the Statement of financial position. (specified in NSWTC11/19)

Personnel services expenses include salaries and wages and other costs for these services. Salaries and wages (including non-monetary benefits) and paid sick leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the service are recognised and measured at the undiscounted amounts of the benefits.


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Annual leave is not expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related service. As such, it is required to be measured at present value in accordance with AASB 119 Employee Benefits. Actuarial advice obtained by Treasury has confirmed that the use of an approach using nominal annual leave plus annual leave on the nominal liability (using 7.9% of the nominal value of annual leave) can be used to approximate the present value of the annual leave liability. The NSW Trustee and Guardian has assessed the actuarial advice based on the NSW Trustee and Guardian's circumstances and has determined that the effect of discounting is immaterial to annual leave. 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. (b) Personnel Services Provisions

Personnel services provisions comprise NSW Trustee and Guardian’s liability to the Department of Justice for costs arising from personnel services rendered by the Department of Justice to balance date. This also includes superannuation for personnel services provided by the Department of Justice.

The NSW Trustee and Guardian's liability for 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 14/04) 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.

The superannuation expense for the financial year is determined by using the formulae specified in the Treasurer’s Directions. The expense for certain superannuation schemes (i.e. Basic Benefit and First State Super) is calculated as a percentage of the employees’ salary. For other superannuation schemes (i.e. State Superannuation Scheme and State Authorities Superannuation Scheme), the expense is calculated as a multiple of the employees’ superannuation contributions.

(c) Consequential on-costs

Consequential costs to employment are recognised as liabilities and expenses where the employee benefits to which they relate have been recognised. This includes outstanding amounts of payroll tax, workers' compensation insurance premiums and fringe benefit tax.

(iii) Other Provisions

Other provisions exist when: NSW Trustee and Guardian has a present legal or constructive obligation 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.


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Notes to the financial statements for the year ended 30 June 2015 If the effect of the time value of money is material, provisions are discounted at the 10 year government bond rate of 2.98% which is a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability. (i)Fair value hierarchy A number of the NSW Trustee and Guardian's accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. When measuring fair value, the valuation technique used maximises the use of relevant observable inputs and minimises the use of unobservable inputs. Under AASB 13, the NSW Trustee and Guardian categories, for disclosure purpose, the valuation techniques based on the inputs used in the valuation techniques as follows:

• Level 1 – quoted prices in active markets for identical assets/liabilities that the NSW Trustee and Guardian can access at the measurement date.

• Level 2 – inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.

• Level 3 – inputs that are not based on observable market data (unobservable inputs). The NSW Trustee and Guardian recognises transfers between levels of the fair value hierarchy at the end of reporting period during which the change has occurred. Refer Note 11 and Note 19 for further disclosures regarding fair value measurements of financial and non-financial assets. (j) Equity and reserves

(i) Revaluation surplus

The revaluation surplus is used to record increments and decrements on the revaluation of non-current assets. This accords with NSW Trustee and Guardian’s policy on the revaluation of property, plant and equipment as discussed in note 1(g)(iii). (ii) Accumulated Funds The category 'Accumulated Funds' includes all current and prior period retained funds.

(iii) Separate reserve accounts are recognised in the financial statements only if such accounts are required by specific legislation or Australian Accounting Standards (e.g. revaluation surplus).

(k) Budgeted amounts The budgeted amounts are drawn from the original budgeted financial statements presented to Parliament in respect of the reporting period. Subsequent amendments to the original budget are not reflected in the budgeted amounts. Major variances between the original budgeted amounts and the actual amounts disclosed in the primary financial statements is explained in Note 16.


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Notes to the financial statements for the year ended 30 June 2015 (l) Comparative information Except when an Australian Accounting Standard permits or requires otherwise, comparative information is presented in respect of the previous period for all amounts reported in the financial statements. (m) Changes in accounting policy, including new or revised Australian Accounting Standards (i) Effective for the first time in 2014-15 The accounting policies applied in 2014-15 are consistent with those of the previous financial year except as a result of the following new or revised Australian Accounting Standards that have been applied for the first time in 2014-15

Reference Description Operative Date

AASB 1055 Budgetary Reporting 1-Jul-14

AASB 2013-9 (Part C), 2014-8

Amendments to Australian Accounting Standards arising from AASB9 regarding Financial Instrument

1-Jul-14

The adoption of these standards did not have a material impact on NSW Trustee and Guardian's financial statements. ii) Issued but not yet effective NSW public sector agencies are not permitted to early adopt new Australian Accounting Standards, unless Treasury determines otherwise. The following new Australian Accounting Standards have not been applied and are not yet effective:

Reference Description Operative Date

AASB 9, 2010-7, 2013-9, 2014-1 (Part E), 2014-7, 2014-8

Amendments to Australian Accounting Standards arising from AASB9 regarding Financial Instrument

1-Jan-18

AASB 1056 Superannuation Entities (June 2014) 1-Jul-16

AASB 2014-4 Amendments to Australian Accounting Standards - Clarification of Acceptable Methods of Depreciation and Amortisation

1-Jan-16


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AASB 2015-1

Amendments to Australian Accounting Standards - Annual Improvements to Australian Accounting Standards 2012-2014 Cycle ( AASB 116 & 138)

1-Jan-16

AASB 2015-2 Amendments to Australian Accounting Standards - Disclosure Initiative: Amendments to AASB101

1-Jan-16

AASB 2015-3 Amendments to Australian Accounting Standards arising from the Withdrawals of AASB1031 Materiality

1-Jul-15

The adoption of these standards in future periods is not expected to materially impact the financial statements. Other recently issued or amended standards are not expected to have a material impact on NSW Trustee and Guardian's financial statements.


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2. Expenses Excluding Losses

2015 2014

$'000 $'000

(a) Personnel services Salaries and related expenditure (including annual

leave)

49,523 50,232 Superannuation - defined benefit plans *

10,824 2,944

Superannuation - defined contribution plans

3,593 3,483 Long service leave

1,968 1,833

Worker's compensation insurance

822 583 Payroll tax and fringe benefits tax

2,889 2,865

Total personnel services

69,619 61,940

* Includes actuarial loss of $9.41 million (loss of $1.48 million in FY 2013-14). These relate to expenses for personnel services provided by the Department of Justice.

(b) Other operating expenses

2015 2014

$'000 $'000

Auditor's remuneration - audit of financial statements: - NSW Trustee and Guardian

212 211 - Common Fund

330 316

Operating lease rental expenses Motor vehicle lease

70 99 Rent expense - NSW Government buildings

2,280 2,301

Rent expense - non-government buildings

1,353 1,294 Maintenance *

1,426 1,276

Insurance

175 148 Consultants

2,165 32

Advertising

2,149 2,367 Internal audit fees

525 330

Fees for services rendered

7,229 6,941 Gas and electricity

342 471

Office supplies

268 284 Postal and telephone

1,118 1,112

Travel expenses

300 295 Training and development

404 273

Other

101 109 Total other operating expenses

20,447 17,859

*Total maintenance expense


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(c) Depreciation and amortisation expense

2015 2014

$'000 $'000

Depreciation Buildings

546 478 Plant and equipment

3,464 2,119

Total depreciation

4,010 2,597

Amortisation Intangible assets

207 887 Total amortisation

207 887

Total depreciation and amortisation

4,217 3,484

3. Revenue

(a) Sale of services

2015 2014

$'000 $'000

Rendering of Services Commissions and fees

23,402 23,513 Trustee fees

5,519 5,396

Private management supervision fees

1,789 1,498 Common Fund management fees

30,747 29,712

Total sale of goods and services

61,457 60,119

(b) Investment revenue

2015 2014

$'000 $'000

Interest revenue from financial assets not at fair value through profit or loss

799 893

TCorp Hour Glass Investment Facility designated at fair value through profit or loss*

5,755 5,394

Total investment revenue 6,554 6,287

*This includes unrealised gain of $1,422,893 ($3,898,755 in FY 2013-14).


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(c) Grants and contributions

2015 2014 $'000 $'000

Funding for the operations of the Public Guardian

8,313 8,119 Community service obligation

5,112 5,112

Contribution from NSW Government

1,769 530 Total grants and contributions

15,194 13,761

(d) Other revenue

2015 2014

$'000 $'000

Car Hire

12 9 Inspection fees

38 37

Refund of working expenses from clients - NSW Trustee and Guardian Regulation 26

433 346

Transfer from the Common Fund*

5,000 7,000 Other

64 18

Total other revenue

5,547 7,410

*Other Revenue includes a transfer from the proceeds of the former Public Trustee NSW Common Fund's Interest Suspense Account. Under Schedule 1, Part 2, 16 (1)(c) of the NSW Trustee and Guardian Act 2009, the Interest Suspense Account may be applied for the current and future costs incurred by the NSW Trustee and Guardian in the exercise of its functions under the Act. Payment out of Sec (1)(c) is in accordance with NSW Trustee and Guardian's approved Budget.


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4. Gain / (Loss) on Disposal

Assets with net loss of $6,376 (loss $11,172 in FY 2013-14) and having no useful life were disposed during the year.

Property, Plant Intangible

and equipment assets Total

$'000 $'000 $'000

2014-2015 Proceeds from disposal

0 0 0 Written down value of assets disposed (5) (1) (6) Net gain/(loss) on disposal

(5) (1) (6)

2013-2014 Proceeds from disposal

6 0 6 Written down value of assets disposed (17) 0 (17) Net gain/(loss) on disposal

(11) 0 (11)

5. Other Gains/(Losses)

2015 2014

$'000 $'000

Impairment on receivables

(16) (11) Impairment on assets

(1,138) 0

Total other gains/(losses)

(1,154) (11)

6. Current Assets -Cash and Cash Equivalents

2015 2014

$'000 $'000

Cash at Bank and on hand

28,947 23,488 Short - term deposits

0 7,779

Total cash and cash equivalents

28,947 31,267

For the purposes of the Statement of cash flows, cash and cash equivalents include cash at bank and cash on hand. Cash and cash equivalents recognised in the Statement of financial position are reconciled to the Statement of cash flows. Refer to Note 19 for details regarding credit risk, liquidity risk and market risk arising from financial instruments.


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7. Current Assets - Receivables

2015 2014

$'000 $'000

Sale of services

168 221 Allowance for impairment

(5) (14)

Other debtors

876 300 Accrued income

5,202 5,685

Personnel services

17,724 15,997 Prepayments

192 106

Total receivables

24,157 22,295

(a) Movement in the allowance for impairment

Balance at 1 July

14 12 Amounts written off during the year

(10) (3)

Amounts recovered during the year

(1) (2) Increase/(decrease) in allowance recognised in profit or loss 2 7 Balance at 30 June

5 14

Details regarding credit risk, liquidity risk and market risk including financial assets that are either past due or impaired, are disclosed in Note 19.

8. Current/Non-Current Assets - Financial Assets at Fair Value

(a) Current Financial assets at fair value

2015 2014

$'000 $'000

TCorp Long Term Growth Facility

6,000 0 Total current financial assets at fair value

6,000 0

(b) Non-current Financial assets at fair value

2015 2014

$'000 $'000

TCorp Long Term Growth Facility

45,149 45,394 Total non-current financial assets at fair value 45,149 45,394

Refer to Note 19 for further information regarding fair value measurement, credit risk, liquidity risk and market risk arising from financial instruments.


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9. Non-Current Assets - Property, Plant and Equipment

Land and buildings*

Plant and equipment

Plant and Equipment

- WIP TOTAL

$'000 $'000 $'000 $'000

At 1 July 2014 - fair value Gross carrying amounts 22,280 17,937 1,698 41,915

Accumulated depreciation and impairment (92) (7,346) 0 (7,438) Net carrying amount 22,188 10,591 1,698 34,477

At 30 June 2015 - fair value Gross carrying amounts 23,815 20,845 2,576 47,236


Reconciliation A reconciliation of the carrying amount of property, plant and equipment at the beginning and end of the

current reporting period is set out below.

Land and buildings*

Plant and equipment

Plant and equipment

- WIP TOTAL

$'000 $'000 $'000 $'000

Year ended 30 June 2015 Net carrying amount at start of year 22,188 10,591 1,698 34,477

Additions 0 437 4,433 4,870 Transfer from work in progress

3,555 (3,555) 0

Net revaluation increments less revaluation decrements

2,041 0 0 2,041

Disposals 0 (6) 0 (6) Depreciation expense (546) (3,464) 0 (4,010) Net carrying amount at end of year 23,684 11,113 2,576 37,373

*The details regarding the fair value measurement of property, plant and equipment are disclosed in Note 11.


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Land and buildings*

Plant and equipment

Plant and equipment

- WIP TOTAL

$'000 $'000 $'000 $'000

At 1 July 2013 - fair value Gross carrying amounts 21,250 12,951 2,434 36,635


At 30 June 2014 - fair value Gross carrying amounts 22,280 17,937 1,698 41,915


Reconciliation A reconciliation of the carrying amount of property, plant and equipment at the beginning and end

of the current reporting period is set out below.

Land and buildings*

Plant and equipment

Plant and equipment

- WIP TOTAL

$'000 $'000 $'000 $'000

Year ended 30 June 2014 Net carrying amount at start of year 20,324 7,645 2,434 30,403

Additions/Transfers 0 5,082 (736) 4,346 Net revaluation increments less revaluation decrements

2,342 0 0 2,342

Disposals 0 (17) 0 (17) Depreciation expense (478) (2,119) 0 (2,597)

Net carrying amount at end of year 22,188 10,591 1,698 34,477

*The details regarding the fair value measurement of property, plant and equipment are disclosed in Note 11.


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10. Intangible Assets

Computer Software

Computer Software

- WIP TOTAL

$'000 $'000 $'000

At 1 July 2014 Cost (gross carrying amount) 6,095 2,867 8,962

Accumulated amortisation and impairment (5,751) 0 (5,751) Net carrying amount 344 2,867 3,211

At 30 June 2015 Cost (gross carrying amount) 2,745 1,922 4,667


Reconciliation

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

Computer Software

Computer Software

- WIP TOTAL

$'000 $'000 $'000

Year ended 30 June 2015 Net carrying amount at start of year 344 2,867 3,211

Additions

800 800 Transfer from work in progress 607 (607) (0) Impairment loss 0 (1,138) (1,138) Disposals (1) 0 (1) Amortisation (recognised in "depreciation and amortisation") (207) 0 (207) Net carrying amount at end of year 743 1,922 2,665


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Computer Software

Computer Software

- WIP TOTAL

$'000 $'000 $'000

At 1 July 2013 - fair value Cost (gross carrying amount) 6,072 1,633 7,705

Accumulated amortisation and impairment (4,934) 0 (4,934) Net carrying amount 1,138 1,633 2,771

At 30 June 2014 - fair value Cost (gross carrying amount) 6,095 2,867 8,962


Reconciliation

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

Computer Software

Computer Software

- WIP TOTAL

$'000 $'000 $'000

Year ended 30 June 2014 Net carrying amount at start of year 1,138 1,633 2,771

Additions:

Software development 25 1,055 1,080

Software improvement 68 179 247

Disposals 0 0 0 Amortisation (recognised in "depreciation and amortisation") (887) 0 (887) Net carrying amount at end of year 344 2,867 3,211


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11. Fair value measurement of non-financial assets

(a ) Fair value hierarchy

Level 1 Level 2 Level 3

Total fair value

$000 $000 $000 $000 2015

Property, plant and equipment (Note 9)

Land and buildings 0 23,684 0 23,684

0 23,684 0 23,684 2014

Property, plant and equipment (Note 9)

Land and buildings 0 22,188 0 22,188

0 22,188 0 22,188

There were no transfers between levels 1 and 2 during the period ended 30 June 2015.

(b ) Valuation techniques, inputs and processes NSW Trustee and Guardian land assets, valued using market evidence, are usually measured using the market approach with adjustment for condition, location, comparability, etc and therefore are categorised as Level 2. The market approach will usually be available even when the land has no feasible use.

NSW Trustee and Guardian building assets are valued using market evidence and are categorised as Level 2. The valuer considers the market as observable inputs and have tried to maximise the use of observable inputs in accordance with the intention of AASB 13.

12. Current Liabilitites - Payables These relate to accrued cost of goods and services provided to NSW Trustee and Guardian.

2015 2014

$'000 $'000

Personnel services payable

1,717 1,481 Creditors

4,323 3,370

GST Payable

241 191 Capital expenditure payables

336 734

6,617 5,776

Details regarding credit risk, liquidity risk and market risk including a maturity analysis of the above payables, are disclosed in Note 19.


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13. Current/Non-Current Liabilities - Provisions These relate to annual leave, long service leave and superannuation for personnel services

provided by the Department of Justice.

(a) Current Provisions

2015 2014

$'000 $'000

Personnel services : Annual leave 5,615 5,919

Long service leave 19,846 17,914 Total current provisions 25,461 23,833

Current provisions are expected to be settled, as follows:

2015 2014

$'000 $'000

Personnel services before 12 months 666 675 Personnel services after 12 months 24,795 23,158 Total current provisions 25,461 23,833

(b) Non-current Provisions

2015 2014

$'000 $'000

Personnel services: Long service leave 740 759

Defined benefit superannuation liability 78,354 68,943 Total non-current provisions 79,094 69,702

(c) Non-current Other

2015 2014

$'000 $'000

Restoration costs* 487 51 Total non-current other 487 51

*Provision is recognised for lease contracts with material make good provision or where the impact of the provision is considered to be material.


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14. Commitments for Expenditure (a) Capital commitments

Aggregate capital expenditure contracted for the acquisition of non - current assets at balance date but not provided for:

2015 2014

$'000 $'000

Not later than one year 526 116 Total (including GST) 526 116

(b) Operating lease commitments

Future non cancellable operating leases not provided for and payable:

2015 2014

$'000 $'000

Not later than one year 1,222 1,100 Later than one and not later than 5 years 2,604 1,118 Later than 5 years 1,119 0 Total (including GST) 4,945 2,218

Operating lease commitments relate to leases currently held in relation to the occupancy of premises by NSW Trustee and Guardian in Sydney and regional offices. These also include operating leases of motor vehicles.

Total commitments include GST receivable from the Australian Taxation Office of $497,275 ($212,186 in FY 2013-14).

15. Contingent Liabilities and Contingent Assets

Legal Matters

NSW Trustee and Guardian may bear a cost risk of some proceedings which have been concluded on behalf of clients due to adverse verdicts or other court orders. The total estimated cost is approximately $2.72 million ($2.8 million in 2013-14) of which $2.31 million ($2.8 million in 2013-14) will be recovered from the Treasury Managed Fund.

Due to the implementation of the Government Service Employment Act 2013 (GSE Act), there may be liabilities for voluntary redundancies as a result of changes to roles description and capabilities.

There were no contingent assets during the year.


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16. Budget Review

Net Result

The actual net result is lower than budget by $2.92 million, primarily due to an increase in expenditures of $4.79 million and an increase in revenue of $0.98 million.

Personnel services expense is higher than budget by $5.02 million mainly due to the recognition of actuarial loss in defined benefit superannuation of $9.41 million and savings in other employee related expenses of $4.46 million.

Other operating expenses are higher than budget by $1.23 million mainly due to increase in consultancy fees. Depreciation and amortisation expenses are lower than budget by $1.45 million due to timing differences in completion of capital projects.

Revenue is higher than budget by $0.98 million mainly due to increases in revenue from commission and fees of $5.92 million and government grant of $1.96 million offset by decreases in investment and other revenue of $6.90 million. The increase in commissions and fees is attributed to improved market conditions affecting NSW Trustee and Guardian clients' assets which positively impacted on NSW Trustee and Guardian revenue. Other losses are higher than budget due to recognition of a loss on impairment of intangibles of $1.14 million during the year.

Assets and Liabilities

Total assets exceeded budget by $11.9 million, which was mainly due to increase in current assets of $19.06 million and a reduction in non-current assets of $7.16 million.

Total liabilities were higher than budget by $28.95 million due to increase in provision for employee related liabilities resulting from the year-end actuarial adjustments for defined benefit superannuation as at 30 June 2014 and 30 June 2015.

Cash flows

Net cash flow is higher than budget by $10.98 million.

Cash flow from operating activities is higher than budget by $4.32 million mainly due to reduction in personnel services of $6.24 million and decrease in revenue of $1.69 million.

Cash flow from investing activities is lower than budget by $6.66 million mainly due to reduction in capital purchases and projects carried forward to 2015-16. There were no proceeds from sale of investments recognised during the year.


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17. Reconciliation of Cash Flows from Operating Activities to Net Result

2015 2014

$'000 $'000

Net cash used on operating activities 3,312 10,190 Depreciation (4,217) (3,484) Revaluation on TCorp LTGF Investment 5,755 5,395 (Increase)/Decrease in provisions (11,021) (3,756) Increase/(Decrease) in prepayments and other assets 1,862 (3,152) (Increase)/Decrease in creditors (1,238) (910) Net Gain/(Loss) on disposal of assets (6) (11) Impairment loss on asset (1,138) 0 Net Result (6,691) 4,272

18. Common Fund Assets

NSW Trustee and Guardian manages the assets of clients under the NSW Trustee and Guardian Act 2009. These assets are not included in the financial statements as the NSW Trustee and Guardian can not use them for the achievement of its objectives. These are separately reported in the financial statements of NSW Trustee and Guardian – Common Funds. Under Section 104 (5) of the NSW Trustee and Guardian Act 2009, amounts credited to a common fund are held on trust by the NSW Trustee and Guardian. Details are summarised below:

2015 2014

$'000 $'000

Common Fund - Trustee Balance at the beginning of the financial year 1,139,953 1,135,113

Receipts 1,017,265 926,696 Payments (971,440) (930,107) Unrealised gain/(loss) in investments (1,884) 8,251 Balance at the end of the financial year* 1,183,894 1,139,953

Common Fund - Financial Management Balance at the beginning of the financial year 1,444,293 1,379,846

Receipts 540,913 458,333 Payments (478,301) (453,595) Unrealised gain/(loss) in investments 12,220 59,709 Balance at the end of the financial year* 1,519,125 1,444,293 Total assets 2,703,019 2,584,246

* Unaudited for both years.


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19. Financial Instruments

NSW Trustee and Guardian’s financial instruments are outlined below. These financial instruments arise directly from NSW Trustee and Guardian’s operations or are required to finance the NSW Trustee and Guardian's operations. NSW Trustee and Guardian does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. NSW Trustee and Guardian’s main risks arising from financial instruments are outlined below, together with NSW Trustee and Guardian’s objectives, policies and processes for measuring and managing risk. Further quantitative and qualitative disclosures are included throughout these financial statements. The Chief Executive Officer has overall responsibility for the establishment and oversight of risk management, reviews and agrees policies for managing each of these risks. Risk management policies are established to identify and analyse the risks faced by NSW Trustee and Guardian, to set risks limits and controls and to monitor risks. Compliance with policies is reviewed by NSW Trustee and Guardian’s Audit and Risk Committee and internal auditors on a continuous basis.

(a) Financial instrument categories:

Financial assets Notes Category

Carrying amount

Carrying amount

2015 2014

Class:

$'000 $'000 Cash and cash equivalents 6 N/A

28,947 31,267

Receivables¹ 7 Receivables measured at amortised cost 23,964 22,189

Financial assets at fair value

8(a)(b)

At fair value through profit and loss - designated as such upon initial recognition

51,149 45,394

Financial liabilities Notes Category

Carrying amount

Carrying amount

2015 2014

Class:

$'000 $'000

Payables² 12 Financial liabilities measured at amortised costs 6,376 5,585

Notes:

¹ Excludes statutory receivables and prepayments (i.e. not within scope of AASB 7). ² Excludes statutory payables and unearned income (i.e. not within scope of AASB 7).


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(b) Credit risk Credit risk arises when there is the possibility of NSW Trustee and Guardian’s debtors will default on their contractual obligations, resulting in a financial loss to NSW Trustee and Guardian. The maximum exposure to credit risk is generally represented by the carrying amount of the financial assets (net of any allowance for impairment). Credit risk arises from the financial assets of NSW Trustee and Guardian including cash, receivables and authority deposits. No collateral is held by NSW Trustee and Guardian. NSW Trustee and Guardian has not granted any financial guarantees. Credit risk associated with NSW Trustee and Guardian’s financial assets, other than receivables, is managed through the selection of counterparties and establishment of minimum credit rating standards. Authority deposits held with NSW Treasury Corporation (TCorp) are guaranteed by the State.

Cash

Cash comprises cash on hand and bank balances within Westpac bank. Interest is earned on daily bank balances at rates published by the bank from time to time. From 31 March 2015, NSW Trustee and Guardian's cash deposits 'at call' were transferred to Westpac accounts within the Treasury Banking System (TBS) in accordance with TC15/01. Funds earning interest within the TBS will be paid the Reserve Bank of Australia cash rate (presently 2.0%). Interest on TBS balances is paid six monthly in March and September by Treasury. Authority deposits

During the financial year, NSW Trustee and Guardian has placed funds on deposit with Treasury Corporation (TCorp), which has been rated “AAA” by Standard and Poor’s. These deposits are similar to money market or bank deposits and have been placed “at call” in the TCorp 11am facility. The deposits at balance date with TCorp were earning an interest rate of 2.20% (2.45% in FY 2013-14) while over the year the weighted average interest rate was 2.40% (2.48% in FY 2013-14) on a weighted average balance during the year of $3,016,639 ($3,947,655 in FY 2013-14). None of these assets are past due or impaired. From 31 March 2015, NSW Trustee and Guardian's cash deposits 'at call' were transferred to Westpac accounts within the Treasury Banking System (TBS) in accordance with TC15/01. Receivables - Trade debtors

All trade debtors are recognised as amounts receivable at the end of each reporting period. Receivables include trade debtors and other receivables, comprising: • Commissions and fees; and • Sundry debtors.


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Collectability of trade debtors is reviewed on an ongoing basis. Procedures as established in the Treasurer's Directions are followed to recover outstanding amounts, including letters of demand. Debts which are known to be uncollectible are written off. An allowance for impairment is raised when there is objective evidence that NSW Trustee and Guardian will not be able to collect all amounts due. This evidence includes past experience, and current and expected changes in economic conditions and debtor credit ratings.

No interest is earned on trade debtors. Sales are made on 21 days terms.

NSW Trustee and Guardian is not materially exposed to concentrations of credit risk to a single trade debtor or group of debtors.

The only financial assets that are past due or impaired are sales of goods and services in the receivables category of the Statement of financial position.

Total1,2

$'000

Past due but not

impaired1,2 $'000

Considered Impaired1,2

$'000 2015

< 3 months overdue

43 43 0 > 3 months < 6 months overdue

20 20 0

> 6 months overdue 42 37 5

2014 < 3 months overdue

86 86 0 > 3 months < 6 months overdue

26 26 0

> 6 months overdue 47 33 14

Notes: ¹ Each column in the table reports "gross receivables".

² The ageing analysis excludes statutory receivables, as these are not within the scope of AASB 7 and excludes receivables that are past due and not impaired. Therefore the "total" will not reconcile to the receivables total recognised in the Statement of financial position.


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(c) Liquidity risk

Liquidity risk is the risk that NSW Trustee and Guardian will be unable to meet its payment obligations when they fall due. NSW Trustee and Guardian continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets. The objective is to maintain a balance between continuity of funding and flexibility through the use of overdrafts, loans and other advances.

During the current and prior year, there were no defaults of loans payable. No assets have been pledged as collateral. NSW Trustee and Guardian’s exposure to liquidity risk is deemed insignificant based on current assessment of risk.

The liabilities are recognised for amounts due to be paid in the future for goods or services received, whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with the policy set out in NSWTC 11/12. For small business suppliers, where terms are not specified, payment is made not later than 30 days from date of receipt of a correctly rendered invoice. For other suppliers, if trade terms are not specified, payment is made no later than the end of the month following the month in which an invoice or a statement is received. For small business suppliers, where payment is not made within the specified time period, simple interest must be paid automatically unless an existing contract specifies otherwise. For payments to other suppliers, NSW Trustee and Guardian may automatically pay the supplier simple interest. The rate of interest applied for the year was 10.36% (2014 - 10.63%)

The liquidity risk is managed by the preparation of cash flow projections on a regular basis for current liabilities. The table below summarises the maturity profile of NSW Trustee and Guardian’s financial liabilities, together with the interest rate exposure.

Interest Rate

Exposure Maturity

Dates

Weighted average effective interest

rate Nominal Amount

Non-interest bearing <1 Year

% $'000 $'000 $'000

2015 Payables Personnel services

payable

N/A 1,717 1,717 1,717

Creditors

N/A 4,323 4,323 4,323

Capital expenditure

N/A 336 336 336 Total

6,376 6,376 6,376


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Interest

Rate Exposure

Maturity Dates

Weighted average effective interest

rate Nominal Amount

Non-interest bearing <1 Year

% $'000 $'000 $'000

2014 Payables Personnel services

payable

N/A 1,481 1,481 1,481

Creditors

N/A 3,370 3,370 3,370 Capital expenditure

N/A 734 734 734

Total

5,585 5,585 5,585

(d) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. NSW Trustee and Guardian's exposure to market risk is primarily through other price risks associated with the movement in the unit price of the Hour Glass Investment Facilities. NSW Trustee and Guardian has no exposure to foreign currency risk and does not enter into commodity contracts.

The effect on profit and equity due to a reasonably possible change in risk variable is outlined in the information below, for interest rate risk and other price risk. A reasonably possible change in risk variable has been determined after taking into account the economic environment in which NSW Trustee and Guardian operates and the time frame for the assessment which is until the end of the next annual reporting period. The sensitivity analysis is based on risk exposures in existence at the Statement of financial position date. The analysis is performed on the same basis as 2014. The analysis assumes that all other variables remain constant.

(i) Interest rates risk

NSW Trustee and Guardian does not have interest bearing liabilities. Exposure to interest rates risk arises primarily through NSW Trustee and Guardian’s 11am deposits at TCorp and with financial institutions. However, the risks are minimised as the deposits are at call. A reasonable possible change of interest of +/- 1% is used, consistent with current trends in interest rates. The basis will be reviewed annually and amended where there is a structural change in the level of interest volatility.


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NSW Trustee and Guardian's exposure to interest rate risk is set out below:

Carrying Amount

-1% 1%

Profit Equity Profit Equity

$000 $000 $000 $000 $000 2015

Financial assets Cash and cash equivalents 28,947 (289) (289) 289 289

2014 Financial assets

Cash and cash equivalents 31,267 (313) (313) 313 313 No other financial assets have interest rate risk.

(ii) Other price risk - TCorp Hour Glass facilities

Exposure to ‘other price risk’ primarily arises through the investment in the TCorp Hour Glass Investment facilities, which are held for strategic rather than trading purposes. NSW Trustee and Guardian has no direct equity investments. NSW Trustee and Guardian holds units in:

Facility

Investment Sector Investment Horizon

2015 2014 $000 $000

Hour-Glass Long Term Growth Facility

Cash, Money market instruments, Australian Bonds, Listed Property, Australian, International and Emerging Markets Shares, International Hedged Shares and Multi Asset

7 Years and over 51,149 45,394

The unit price of each facility is equal to the total fair value of net assets held by the facility divided by the total number of units on issue for that facility. Unit prices are calculated and published daily. NSW TCorp is trustee for each of the above facilities and is required to act in the best interest of the unit-holders and to administer the trusts in accordance with the trust deeds. As trustee, TCorp has appointed external managers to manage the performance and risks of each facility in accordance with a mandate agreed by the parties. A significant portion of the administration of the facilities is outsourced to an external custodian.

Investment in the Hour Glass facilities limits NSW Trustee and Guardian’s exposure to risk, as it allows diversification across a pool of funds, with different investment horizons and a mix of investments.


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NSW TCorp provides sensitivity analysis information for each of the Investment facilities, using historically based volatility information over a ten year period, quoted at two standard deviations (i.e 95% probability). The TCorp Hour Glass Investment facilities are designated at fair value through profit or loss and therefore any change in unit price impacts directly on profit (rather than equity). A reasonably possible change is based on the percentage change in unit price (15% as advised by TCorp) multiplied by the redemption value as at 30 June each year for the investments held in the Hour Glass Long Term Growth Facility, is as follows:

Change

in Unit Price

Impact on profit/loss

Facility

2015 2014 % $'000 $'000

Hour Glass Investment - Long Term Growth Facility +15% 7,672 6,809 Hour Glass Investment - Long Term Growth Facility -15% (7,672) (6,809)

(e ) Fair value measurement

(i) Fair value compared to carrying amount Financial instruments are generally carried at cost, with the exception of the TCorp Hour Glass Facilities which are measured at fair value. The amortised cost of financial instruments recognised in the Statement of financial position approximates the fair value, because of the short term nature of many of the financial instruments.

(ii) Fair value recognised in the Statement of financial position

2015 2014

Level 2 Total Total

$000 $000 $000

Financial assets at fair value

TCorp Hour Glass Investment Facility 51,149 51,149 45,394

51,149 51,149 45,394

There were no transfers between levels 1 and 2 during the period ended 30 June 2015. There were no levels 1 and 3 categories, hence not disclosed.

The value of the Hour Glass investments is based on NSW Trustee and Guardian’s share of the value of the underlying assets of the facility, based on the market value. All the Hour Glass facilities are valued using 'redemption' pricing.


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(g ) Committees The Executive Management Committee has ultimate responsibility for risk management and governance, including ensuring that an appropriate risk framework is in place and is operating effectively. There are however other committees and individuals within NSW Trustee and Guardian that manage and monitor financial risks. The Audit and Risk Committee assists NSW Trustee and Guardian to achieve its corporate and fiduciary objectives by providing advice and ensuring that a sound and efficient system of internal control is maintained by sound risk management practices and effective internal and external audit review. The responsibilities of the Committee encompass the review and oversight of the following areas:

• Risk Management • Internal control framework

(governance) • Legislative compliance

• Internal audit • External audit • Initiate investigations into any matter deemed appropriate.

The Independent Investment Advisory Committee (IIAC) has the following responsibilities:

• review of the management of a common fund, and its portfolios • review of the management of its corporate investment portfolio • review and oversight of the performance of Common Fund Portfolios compared to the

relevant benchmarks.

The role of the IIAC is to set policies and oversight the management of investment assets of clients, investments made by the trustee, and investments of NSW Trustee and Guardian. As part of this process, the IIAC reviews and agrees to strategies for the various portfolios in accordance with the investment policies and legislative direction.

20. Events after the Reporting Period

No events have occurred since the end of the financial year which significantly affect/may significantly affect the operations/results of operations of NSW Trustee and Guardian.

End of Audited Financial Statements


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Appendices Appendix 1: Obligations Under the GIPA Act NSWTG proactively releases information and handles requests for information pursuant to the requirements of the Government Information (Public Access) Act 2009, replacing the Freedom of Information Act 1989. As a separate entity for GIPAA, NSWTG considers all applications for information held by it and the Public Guardian. Review of Proactive Release Program - Clause 7(a) Under section 7 of the GIPA Act, agencies must review their programs for the release of government information to identify the kinds of information that can be made publicly available. This review must be undertaken at least once every 12 months. During the reporting year, NSWTG has continued to review and update of its policies and procedures. NSWTG’s proactive release reflects the information and policies of repeated interest to our clients. NSWTG holds large amount of sensitive and personal client information. We have implemented procedures which require us to consider informal release of information in the first instance and wherever possible, subject to any over‐riding considerations against disclosure.

NSWTG’s program for the proactive release of information involves the review of all polices and procedures as they are finalised to consider whether they are suitable for pro‐active release. Information considered to fall within the guidelines for proactive release is available for download from our website www.tag.nsw.gov.au via the ‘access to information’ tab.

Number of Access Applications Received - Clause 7(b) During the reporting period, NSWTG received a total of 14 formal access applications (including withdrawn applications but not invalid applications). Number of Refused Applications for Schedule 1 Information - Clause 7(c) During the reporting period, our agency refused a total of 1 formal access applications because the information requested was information referred to in Schedule 1 to the GIPA Act. The request for information was instead considered under trustee disclosure obligations and released as an informal request.



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Statistical Information About Access Applications - Clause 7(d) and Schedule 2

Table A: Number of applications by type of applicant and outcome* Access

granted in full

Access granted in part

Access refused in full

Information not held

Information already available

Refuse to deal with application

Refuse to confirm/deny whether information is held

Application withdrawn

Media 0 0 0 0 0 0 0 0 Members of Parliament

0 0 0 0 0 0 0 0

Private sector business

0 0 0 0 0 0 0 0

Not for profit organisations or community groups

0 0 0 0 0 0 0 0

Members of the public (application by legal representative)

2 1 0 0 0 1 0 1

Members of the public (other)

4 5 1 0 0 0 0 0

*More than one decision can be made in respect of a particular access application. If so, a recording must be made in relation to each such decision. This also applies to Table B. Table B: Number of applications by type of application and outcome Access

granted in full

Access granted in part

Access refused in full

Information not held

Information already

available

Refuse to deal with

application

Refuse to confirm/deny

whether information is

held

Application withdrawn

Personal information applications*

3 0 0 0 0 0 0

Access applications (other than personal information applications)

0 0 1 0 0 1 0 1

Access applications that are partly personal information applications and partly other

4 5 0 0 0 0 0 0

*A personal information application is an access application for personal information (as defined in clause 4 of Schedule 4 to the Act) about the applicant (the applicant being an individual).

The total number of decisions in Table B should be the same as Table A.


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Table C: Invalid applications Reason for invalidity Number of applications

Application does not comply with formal requirements (section 41 of the Act)

0

Application is for excluded information of the agency (section 43 of the Act)

1

Application contravenes restraint order (section 110 of the Act)

0

Total number of invalid applications received 1

Invalid applications that subsequently became valid applications

0

Table D: Conclusive presumption of overriding public interest against disclosure: matters listed in Schedule 1 of the Act Number of times

consideration used*

Overriding secrecy laws 0

Cabinet information 0

Executive Council information 0

Contempt 0

Legal professional privilege 3

Excluded information 2

Documents affecting law enforcement and public safety 0

Transport safety 0

Adoption 0

Care and protection of children 0

Ministerial code of conduct 0

Aboriginal and environmental heritage 0

*More than one public interest consideration may apply in relation to a particular access application and, if so, each such consideration is to be recorded (but only once per application). This also applies in relation to Table E.


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Table E: Other public interest considerations against disclosure: matters listed in table to section 14 of the Act Number of occasions

when application not successful

Responsible and effective government 6

Law enforcement and security 0

Individual rights, judicial processes and natural justice 13

Business interests of agencies and other persons 0

Environment, culture, economy and general matters 0

Secrecy provisions 0

Exempt documents under interstate Freedom of Information legislation

0

Table F: Timeliness Number of

applications

Decided within the statutory timeframe (20 days plus any extensions)

13

Decided after 35 days (by agreement with applicant) 1

Not decided within time (deemed refusal) 0

Total 14

Table G: Number of applications reviewed under Part 5 of the Act (by type of review and outcome) Decision

varied Decision upheld

Total

Internal review 0 1 1

Review by Information Commissioner* 0 0 0

Internal review following recommendation under section 93 of Act

2 0 2

Review by ADT 0 0 0

Total 2 1 3

*The Information Commissioner does not have the authority to vary decisions, but can make recommendation to the original decision-maker. The data in this case indicates that a recommendation to vary or uphold the original decision has been made.


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Table H: Applications for review under Part 5 of the Act (by type of applicant)

Number of applications for review

Applications by access applicants 2

Applications by persons to whom information the subject of access application relates (see section 54 of the Act)

1

Appendix 2: Action Plans Disability The Disability Action Plan indicators are reported in the Department of Justice Annual Report for 2014‐2015. NSWTG Culturally Diverse Communities Action Plan The Culturally Diverse Communities Action Plan and the Multicultural Services and Programs indicators are reported on in the Department’s Annual Report for 2014‐2015. Action Plan for Women The Action Plan for Women form part of the EEO statistics and are reported in the Department of Justice Annual Report for 2014–2015.

Appendix 3: Carers (Recognition) Act 2010 The legislative framework for both NSWTG and the Public Guardian makes it mandatory to consider the views of those involved in clients’ lives when making decisions. This enshrines the role of carers in all decision making processes for substitute decision making. NSWTG developed a new decision making framework in 2014–2015. The involvement of carers in that process was reinforced. NSWTG maintains information on the intranet for all staff on the Carers (Recognition) Act 2010.

Appendix 4: Code of Ethics and Behaviour NSWTG is covered by the Department of Justice’s Code of Conduct and Ethics. There were no changes to the code in 2014–2015. The code sets out staff obligations and the expected standards of ethical behaviour. It assists staff to identify and deal with maladministration or corruption. It identifies internal systems for detection, preliminary investigation, reporting and prevention of such behaviour. All departmental staff must comply with the code, which is consistent with the Independent Commission Against Corruption Act 1988, Public Sector Employment and Management Act 2002, Public Finance and Audit Act 1983 and Privacy and Personal Protection Information Act 1998.


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The code incorporates three principles:

• Public confidence • Responsibility to the government of the day • The rights of employees.

The public has the right to expect that public sector organisations demonstrate the highest integrity and competence, treating all citizens fairly, reasonably and equitably. The government of the day is entitled to expect that its employees provide impartial and accurate advice and implement its policies promptly, efficiently and effectively. Public sector employees enjoy the same rights as private sector employees. They have additional protection under some legislation, such as the Protected Disclosures Act 1994 and the Anti-Discrimination Act 1977.

Appendix 5: Employment Reporting The Equal Employment Opportunity (EEO) data is reported on in the Department of Justice’s Annual Report for 2014‐2015. Industrial Relations There were no stoppages during the 2014‐2015 financial year. The Joint Consultative Committee continues to meet regularly to resolve issues of concern. Workplace Health and Safety The NSWTG Work Health Safety Committee (WHS Committee) met throughout the year, providing a forum for staff and management to consult about issues affecting workplace safety. The WHS Committee consists of members elected from all locations of NSW Trustee and Guardian and Public Guardian. The WHS Committee met on five occasions during the reporting period. Forty five incidents were recorded during the reporting period and the format of data provided was improved, which assisted the Committee in their investigations. Eighteen workplace inspections were conducted to promote welfare and safety in the work environment by a qualified independent contract company. Movement in Salaries 2014-2015 A 2.5% public sector award salary increase came into effect July 2014.


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Personnel Policies and Practices NSWTG staff are employees of the Department of Justice and are covered by the Government Sector Employment (GSE) Act 2013. Senior Executive Service Positions At 30 June 2015 there were three Senior Executive Service positions within NSWTG. CEO, SES Level 5 Imelda Dodds BSocSc(Social Work), MA Public Policy, Accredited Social Worker, Adjunct Professor of Social Work, University of Sydney Director, Client Services, SES Level 2 Damon Quinn BA, MA, MBA (AGSM) Director, Specialist Services, SES Level 2 Tracy Burgess, BBM, EMPA At 30 June 2015, there was one Senior Executive Service position in the Public Guardian: Public Guardian, SES Level 1 Graeme Smith BSocSc, BLegSt is the Public Guardian, an independent statutory officer. The Public Guardian is part of the Department of Justice and is supported administratively by NSW Trustee and Guardian. Further Senior Executive data is reported on in the Department of Justice Annual Report for 2014‐2015.

Appendix 6: Significant Committees Alzheimers Australia Prevention of Financial Abuse of Older People Working Party Ruth Pollard, Assistant Director, Legal Services, NSW Trustee and Guardian Australian Guardianship and Administration Council Imelda Dodds, CEO, NSW Trustee and Guardian Graeme Smith, Public Guardian, Public Guardian Australian Public Trustees National Superannuation Working Group Bernie Farrell, Director Finance and Client Funds Management Boarding House Expert Advisory Group Meredith Coote, Assistant Director Disability Advisory Service, NSW Trustee and Guardian Theo Hastings, Assistant Director Operations, Public Guardian


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Community Living Consultation Group Justine O’Neill, Acting Assistant Director Advocacy and Policy, Public Guardian Criminal Justice Program Reference Group Theo Hastings, Assistant Director Operations, Public Guardian Edith Cavill Trust Carol Coombes, Assistant Director Client Services Elder Law & Succession Committee NSW Law Society Ruth Pollard, Assistant Director, Legal Services, NSW Trustee and Guardian End of Life Decisions Policy Advisory Group Justine O’Neill, Acting Assistant Director Advocacy and Policy, Public Guardian Financial Abuse of Older People Working Group Justine O’Neill, Acting Assistant Director Advocacy and Policy, Public Guardian Interdepartmental Committee on Ageing and Strategy Imelda Dodds, CEO, NSW Trustee and Guardian Liz Argent, General Manager Business Development, NSW Trustee and Guardian

Integrated Services Project Theo Hastings, Assistant Director Operations, Public Guardian Involuntary Drug and Alcohol Program Steering Committee Justine O’Neill, Acting Assistant Director Advocacy and Policy, Public Guardian NSW Government Advertising Peer Review Panel Liz Argent, General Manager Business Development, NSW Trustee and Guardian NSW Severe Domestic Squalor Focus Group Kathy King, Acting Assistant Director Advocacy and Policy, Public Guardian Planning for Later Life Forum Imelda Dodds, CEO, NSW Trustee and Guardian Liz Argent, General Manager Business Development, NSW Trustee and Guardian Justine O’Neill, Acting Assistant Director Advocacy and Policy, Public Guardian Probate Users Group, Supreme Court Ruth Pollard, Assistant Director, Legal Services, NSW Trustee and Guardian Review of Advanced Care Directives (ROAD) Project Working group Justine O’Neill, Acting Assistant Director Advocacy and Policy, Public Guardian


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Trustee Corporations Association Imelda Dodds, CEO, NSW Trustee and Guardian Upper Hunter Aboriginal Heritage Trust Tracy Burgess, Director Specialist Services, NSW Trustee and Guardian Damon Quinn, Director, Client Services, NSW Trustee and Guardian Vulnerable People in Licensed Residential Centres Meredith Coote, Assistant Director Disability Advisory Service, NSW Trustee and Guardian Working Group: Resource on the end of life and the law in NSW Justine O’Neill, Acting Assistant Director Advocacy and Policy, Public Guardian

Appendix 7: Key Statutory Compliance Programs As a NSW public sector organisation, NSWTG complies with government policies and reporting requirements. This includes external governance and compliance for business performance. GST Compliance NSWTG met corporate and trustee responsibilities for GST compliance in 2014‐2015. Privacy Management NSWTG took account of the privacy principles set out in Privacy and Personal Information Protection Act 1998 and the Health Records and Information Privacy Act 2002 in all areas of operation. NSWTG also prepared privacy information sheets for each of our services. Records Management NSWTG continued implementation of the Records Management Improvement Plan. This includes establishing protocols with the NSW Government Records Repository for storage and retrieval of NSWTG records. NSWTG has commenced the implementation of electronic document management across all operational areas.


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Public Information Disclosures NSWTG is compliant with requirements under the Public Interest Disclosures Act 1994. Information on how to make public disclosures is provided to all staff through training, intranet and staff newsletters. Staffare encouraged to disclose any incidence of possible maladministration, corruption, serious and substantial waste and government information contravention.

Statistical Information on PIDs

July 2014-June 2015

Number of public officials who made PIDs 0 Number of PIDs received 0 Of PIDS received, number primarily about:

• Corrupt Conduct 0 • Maladministration 0 • Serious and Substantial Waste 0 • Government Information

Contravention 0 Number of PIDs finalised 0

Appendix 9: Payment Performance Indicators 1 July 2014 to 30 June 2015 NSWTG Payment Performance

Quarter Current

Less than 30

days overdue

Between 30 and 60 days overdue

Between 61 and 90 days over due

More than 90

days overdue

$'000 $'000 $'000 $'000 $'000

All suppliers September 4,726 0 0 0 0 December 5,157 0 0 0 0 March 5,441 1 0 0 0 June 9,531 7 0 0 0 Small business suppliers September 106 0 0 0 0 December 238 0 0 0 0 March 661 0 0 0 0 June 759 0 0 0 0


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Measure Sep 14 Dec 14 Mar 15 Jun 15

All suppliers Invoices due for payment (#) 1,159 1,338 1,227 1,420

Invoices paid on time (#) 1,159 1,338 1,226 1,415

Actual percentage of invoices paid on time (based on number of invoices)

100.0% 100.0% 99.9% 99.6%

Amount due for payment ($'000) 4,726 5,157 5,442 9,538

Amount paid on time ($'000) 4,726 5,157 5,441 9,531 Actual percentage of invoices paid on time (based on $)

100.0% 100.0% 100.0% 99.9%

Number of payments for interest on overdue accounts (#)

0 0 0 0

Interest paid on overdue accounts ($'000) 0 0 0 0

Small business suppliers

Invoices due for payment (#) 59 47 63 68

Invoices paid on time (#) 59 47 63 68 Actual percentage of invoices paid on time (based on # of invoices)

100% 100% 100% 100%

Amount paid on time ($'000) 106 238 661 759

Amount due for payment ($'000) 106 238 661 759

Actual percentage of invoices paid on time (based on $)

100% 100% 100% 100%


0 0 0 0



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Public Guardian Payment Performance

Quarter Current

Less than 30

days overdue

Between 30 and 60 days overdue

Between 61 and 90 days over due

More than 90

days overdue

$'000 $'000 $'000 $'000 $'000

All suppliers September 172 0 0 0 0 December 193 0 0 0 0 March 218 0 0 0 0 June 234 1 0 0 0 Small business suppliers September 0 0 0 0 0 December 2 0 0 0 0 March 2 0 0 0 0 June 0 0 0 0 0


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Measure Sep 14 Dec 14 Mar 15 Jun 15

All suppliers Invoices due for payment (#) 187 178 138 187

Invoices paid on time (#) 187 178 138 185

Actual percentage of invoices paid on time (based on number of invoices)

100.0% 100.0% 100.0% 98.9%

Amount due for payment ($'000) 172 193 218 235

Amount paid on time ($'000) 172 193 218 234 Actual percentage of invoices paid on time (based on $)

100.0% 100.0% 100.0% 99.7%


0 0 0 0


Small business suppliers

Invoices due for payment (#) 0 1 2 1

Invoices paid on time (#) 0 1 2 1 Actual percentage of invoices paid on time (based on # of invoices)

100% 100% 100% 100%

Amount paid on time ($'000) 0 2 2 0 Amount due for payment ($'000) 0 2 2 0 Actual percentage of invoices paid on time (based on $)

100% 100% 100% 100%

Number of payments for interest on overdue accounts (#) 0 0 0 `0


Appendix 10: Statement of Performance Imelda Dodds CEO of NSW Trustee and Guardian, SES level 5 Total remuneration package $308,039 Contract period 2010 to 2015 Imelda Dodds is responsible for the management and performance of the NSW Trustee and Guardian. Major achievements: Ms Dodds provided leadership to the NSW Trustee and Guardian (NSWTG) through its sixth year of operation as an organization.


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Ms Dodds successfully achieved the following key activities and milestones: • Led the organization through the first phase of a major business transformation project • Progressed the development of the new Client Data management system project and

Integrated Digital management strategy. • Extended the Assisted Decision Making project with the Office of the Public Guardian. • Led the development of submissions and represented NSWTG through the IPART Review

of Fees • Actively promoted NSWTG and the need for pre‐planning instruments in the key

campaigns of Get it in black and white and Seniors Week. Ms Dodds represented the Department on the NSW Government Inter Agency Committee on Ageing. Ms Dodds chairs the interagency forum Planning for Later Life. Through the Planning for Later Life Forum NSWTG has maintained their leadership in the planningaheadtools website and the Get it in black & white campaign. Ms Dodds has also chaired Australian Guardianship and Administration Conferences (AGAC) during part of the reported period and has assumed the role of co‐chair of the Trustees Board of the Financial Services Council (FSC).

Appendix 11: Generic Disclosures Consultants We observed government policy on employment of consultants. As a Trustee we are specifically excluded from the requirement of reporting the nature of these consultants. Credit card certification We certify that credit card usage by officers of NSW Trustee and Guardian was in accordance with appropriate government policy, Premier’s Memoranda and Treasurer’s Directions. Land disposal There were no property disposals in 2014–2015. Overseas Visits Damon Quinn, Director, Client Services and John Chow, Assistant Director, Analytics & Strategy, Specialist Services travelled to New Zealand on 25th to 27th March, 2015 to visit the NZ Public Trustee, to view their client management IT system Nav1.


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Appendix 12: Client Access to Services Information on NSWTG services is available through their website: www.tag.nsw.gov.au or by calling 1300 364 103 for information on Trustee services or 1300 320 320 for information on Financial Management Services. NSW Trustee and Guardian has a network of branches throughout metropolitan Sydney and regional areas across NSW. Additionally, where a NSWTG branch is not accessible the Registrar of the Local Court is our Agent for Trustee services.

Armidale Client Specialist Centre - Managed Client Services 2/111 Marsh Street, Armidale NSW 2350 Trustee Services Only

Ph: (02) 6775 4100 Fax: (02) 8688 9709 [email protected]

144 Clarence Street Sydney NSW 2010 Cash facilities available Ph: 1300 320 320

Bankstown Gosford Suite 1, Level 7, 66‐72 Rickard Road Bankstown NSW 2200 Trustee Services Only


1 Watt Street, Gosford NSW 2250 Trustee and Financial Management Services Ph: (02) 4325 6700 Fax: (02) 8688 9787 [email protected]

Bathurst Hurstville 230 Howick Street, Bathurst NSW 2795 Trustee and Financial Management Services


Level 5, Suite 2, 12 Butler Road, Hurstville NSW 2220 Trustee and Financial Management Services


Burwood Lismore Suite 3, Level 2, 74 Burwood Road, Burwood NSW 2134 Trustee Services Only


6 Zadoc Street, Lismore NSW 2480 Trustee and Financial Management Services



http://www.tag.nsw.gov.au/location.html/branch/armidale_branch

http://www.tag.nsw.gov.au/location.html/branch/client_specialist_centre


http://www.tag.nsw.gov.au/location.html/branch/bankstown_branch

http://www.tag.nsw.gov.au/location.html/branch/gosford_branch



http://www.tag.nsw.gov.au/location.html/branch/bathurst_branch

http://www.tag.nsw.gov.au/location.html/branch/hurstville_branch



http://www.tag.nsw.gov.au/location.html/branch/burwood_branch

http://www.tag.nsw.gov.au/location.html/branch/lismore_branch




Page 113

Chatswood Liverpool 10 Help Street Chatswood NSW 2067 Trustee and Financial Management Services


112 Moore Street, Liverpool NSW 2170 Trustee and Financial Management Services


Miranda Port Macquarie Shop 3, 629 The Kingsway, Miranda NSW 2228 Trustee Services Only


Shop 2, Centreport 114 William Street, Port Macquarie NSW 2444 Trustee Services Only


Newcastle Sydney City 158 King Street, Newcastle NSW 2300 Trustee and Financial Management Services


19 O'Connell Street, Sydney NSW 2000 Trustee and Financial Management Services Ph: (02) 9252 0523 Fax: (02) 8688 9724 [email protected]

Parramatta Wagga Wagga Justice Precinct Offices Ground Floor, 160 Marsden Street Parramatta NSW 2150 Trustee and Financial Management Services


176 Baylis Street Wagga Wagga NSW 2650 Trustee and Financial Management Services Ph: 02 6932 7800 Fax: 02 8688 9726 [email protected]

Penrith Wollongong 2‐6 Station Street Penrith NSW 2751 Trustee Services Only

Ph: 02 4723 2800 Fax: 02 8083 9266 [email protected]

59 Market Street, Wollongong NSW 2500 Trustee and Financial Management Services


http://www.tag.nsw.gov.au/location.html/branch/chatswood_branch

http://www.tag.nsw.gov.au/location.html/branch/liverpool_branch



http://www.tag.nsw.gov.au/location.html/branch/miranda_branch

http://www.tag.nsw.gov.au/location.html/branch/port_macquarie_branch



http://www.tag.nsw.gov.au/location.html/branch/newcastle_branch

http://www.tag.nsw.gov.au/location.html/branch/sydney_central



http://www.tag.nsw.gov.au/location.html/branch/parramatta

http://www.tag.nsw.gov.au/location.html/branch/wagga_wagga_branch



http://www.tag.nsw.gov.au/location.html/branch/penrith_branch

http://www.tag.nsw.gov.au/location.html/branch/wollongong_branch




Page 114

Index Access to Government Information 98 Action Plan for Women 102 Advisory Committee 35 Appendices 98 Availability of Annual report 2 Budgets 24 Campaigns and Projects 29 Capital Budget 27 Capital Expenditure 27 Carers’ Recognition 102 Charter 4 Client access to Services 112 Client property 15 Clients and stakeholders 6 Code of Ethics and Behaviour 102 Common Funds 17 Community Campaigns 30 Community Education (NSWTG) 21 Community Information (Public Guardian)

50

Compliance Program 37 Complaints (NSWTG) 22 Complaints (PG) 51 Consultants 111 Credit Card Certification 111 Customer Feedback 21 Deceased estates 11 Disability Plans 102 Dormant Funds 15 Elder Law 29 Equal Employment Opportunity 103 Executive Team 34 External Cost of Annual Report production

2

Financial Management Common Fund 17 Financial Management Services 12 Financial Statements 53 Future Directions (PG) 54 Future Plans (NSWTG) 44 Governance 34 Government Information (Public Access) Act 2009

98

Growth Portfolio (Trustee) 19 GST Compliance 106 Human Resources 28 Independent Auditor’s Report 57 Industrial Relations 103 Internal audit attestation (NSWTG) 39 Internal audit attestation (PG) 53 Investment Advisory Committee 36 Investment Performance 16, 19


Page 115

Land Disposal 111 Legal Services 16 Legislative Framework 4 Legislative Review and Inquiry Submissions

29

Letter of Submission 2 Management and Structure 35 Management of seized and confiscated assets

14

Management and Activities 10 Mission and Objectives 4 Multicultural policy and Services Program

102


64

Numbers of executive officers 34 NSW Seniors Week 31 Organisation Chart 35 Overseas travel 111 Payment of Accounts 107 Performance of executive officer 110 Personnel policies and practices 102 Powers of Attorney 12 Primary Portfolio (Trustee) 20 Privacy Management 106 Private Financial Manager Support 14 Projects and Campaigns 29 Promotion/Overseas travel 111 Public Information Disclosures 107 Public Guardian Report 45 Records Management 106 Review of Operations 7 Risk Management and Insurance 37 Risk management policy attestation 39 Senior Executive Positions 104 Services (NSWTG) 4 Services (PG) 45 Statement in Accordance with Section 41C Public Finance and Audit Act 1983

59


60


61


62


63

Statement of Performance 107 Summary review of operations 7 Taxation Services 16 Technology Support for Service Delivery 44 Time for Payment of Accounts 107 Training and Development (NSWTG) 28 Training and Development (PG) 49 Trusts 11


Page 116

Wills 11 Workforce 28 Workplace Health and Safety 103