The following is a brief summary of the overall financial position of the agency.
The information is unaudited. Full audited financial statements for 2018-19 are attached to this report.
Statement of Comprehensive Income
2018-19 Actual $000s | 2018-19 Budget $000s | Variation $000s | 2017-18 Actual $000s | |
---|---|---|---|---|
Revenues | 30 985 | 28 991 | 1 994 | 24 804 |
Expenses | 26 073 | 24 824 | (1 249) | 23 629 |
Net result before distributions | 4 912 | 4 167 | 745 | 1 175 |
Income tax equivalent | 1 474 | 1 251 | 223 | 352 |
Net result after Income Tax Equivalents | 3 438 | 2 916 | 522 | 823 |
Statement of Financial Position
2018-19 Actual $000s | 2018-19 Budget $000s | Variation $000s | 2017-18 Actual $000s | |
---|---|---|---|---|
Current assets | 10 270 | 9 325 | 945 | 8 958 |
Non-current assets | 24 343 | 24 201 | 142 | 23 913 |
Total assets | 34 613 | 33 526 | 1 087 | 32 871 |
Current liabilities | 5 141 | 4 923 | (218) | 4 040 |
Non-current liabilities | 4 769 | 4 407 | (362) | 4 538 |
Total liabilities | 9 910 | 9 330 | (580) | 8 578 |
Net assets | 24 703 | 24 196 | 507 | 24 293 |
Equity | 24 703 | 24 196 | 507 | 24 293 |
During 2018-19 an interim dividend was paid and a final dividend is payable in 2019-20. The total payment will be $3.438m (2017-18 total $699 000).
The Public Trustee’s net result before distributions was $4.912m in 2018-19. That was $745 000 above budget. The following items contributed to the favourable result:
- Revenue was 6.9% ($1.994m) higher than budget. The favourable variance was attributable to investment revenue $830 000, sundry income $731 000, fees and charges revenue $287 000 and management fees $146 000.
- Expenses were 5% ($1.249m) above budget. This higher expenditure was mainly due to long service leave from staff that have transferred from other government agencies and targeted voluntary separation packages. This was recovered from these government agencies (shown as additional sundry income). Other expenditure included the increase in Long Service Leave costs arising from accounting valuation changes that occurred across government and unbudgeted expenditure relating to the Wills reform.
Community Service Obligations
A Community Service Obligation framework was introduced on 1 July 2018. This framework is consistent with other government trading businesses.
The Community Service Obligation framework directly funds the Public Trustee’s non-commercial services. These include:
- Managing the Affairs of the Disadvantaged (Personal Estates)
- Managing Small Trusts
- Regulation of Private Administrators
- Litigation Guardianship Matters.
From 1 July 2019 the Community Service Obligation framework will be expanded to include Wills and Power of Attorney for concession holders.
This is a result of the policy decision to no longer compete with private enterprise to offer Wills and Power of Attorney services for non-concession holders.
The Community Service Obligation payment to the Public Trustee was $4.315 million in 2018-19. It increases the Public Trustee’s profit which is fully repaid to government via dividends and tax equivalent payments.
Consultants disclosure
The following is a summary of external consultants that have been engaged by the agency, the nature of work undertaken, and the actual payments made for the work undertaken during the financial year.
Consultancies with a contract value below $10,000 each
Consultancies | Purpose | Actual payment |
---|---|---|
All consultancies below $10,000 each – combined | Various | $ 3 300 |
Consultancies with a contract value above $10,000 each
Consultancies | Purpose | Actual payment |
---|---|---|
KPMG Forensic Pty Ltd | Client Relationship Management Software Review | $ 55 000 |
Ernst Young | Information Technology Network Consolidation Review | $ 33 000 |
Tasman Resourcing | Human Resource Consulting | $ 28 124 |
SS&C Solutions Pty Ltd | Asset Management Software Review | $ 21 544 |
Total | $137 668 |
Data for previous years is available at: https://data.sa.gov.au/data/organization/attorney-general-s-dept
See also the Consolidated Financial Report of the Department of Treasury and Finance for total value of consultancy contracts across the South Australian Public Sector.
Contractors disclosure
The following is a summary of external contractors that have been engaged by the agency, the nature of work undertaken, and the actual payments made for work undertaken during the financial year.
Contractors with a contract value below $10,000
Contractors | Purpose | Actual payment |
---|---|---|
All contractors below $10,000 each – combined | Various | $115 540 |
Contractors with a contract value above $10,000 each
Contractors | Purpose | Actual payment |
---|---|---|
Deloitte Risk Advisory Pty Ltd | Taxation advice | $14 252 |
Hays Specialist Recruitment Pty Ltd | Temp Staff Agency | $14 817 |
Modis Staffing Pty Ltd | Temp Staff Agency | $24 371 |
Fuji Xerox Business Force Pty Ltd | Mailing Services | $28 672 |
KPMG | Accounting Advice | $16 913 |
KPMG | Strategic Plan Review | $12 860 |
Scan Conversion Services Pty Ltd | Scanning Services | $31 121 |
Wavemaker Australia Pty Ltd | Advertising Services for metropolitan/regional Will making visits | $31 979 |
Excel Recruitment | Temp Staff Agency | $44 640 |
Randstad Pty Ltd | Temp Staff Agency | $78 488 |
Careerlink People Solutions | Temp Staff Agency | $111 680 |
Pricewaterhouse Coopers | Internal Audit and Risk Management Services | $260 278 |
Total | $670 153 |
Data for previous years is available at: https://data.sa.gov.au/data/organization/attorney-general-s-dept
The details of South Australian Government-awarded contracts for goods, services, and works are displayed on the SA Tenders and Contracts website. View the agency list of contracts.
The website also provides details of across government contracts.
Other information
Under the Public Corporations Act 1993, a Charter must be prepared for a Public Corporation and agreed between the Attorney-General and the Treasurer.
The Charter describes the reporting and accountability requirements and outlines objectives for invested customer funds, financial and other performance targets. It also sets out the responsibilities and the expectations of both the Public Trustee and the Government. The Charter is reviewed annually.
Customer Investments
All investment options finished with positive returns, despite a volatile start to the financial year. Growth oriented strategies with a higher weighting to shares, property and infrastructure were the best performers.
In terms of market performance the Public Trustee’s more conservative investment style with a focus on value and quality led to some underperformance from benchmark over the last 12 months, due to a rally in high growth/speculative stocks within the market. The Public Trustee’s investment returns ranged from 1.92% for cash to 4.54% for growth, net of fees.
The Public Trustee’s investment strategies have outperformed their CPI targets over each of the suggested time horizons, as illustrated below:
Investment Performance versus CPI Objectives as at 30 June 2019
Investment Strategy | CPI Objective | Investment Horizon | Target Return % pa | Actual Return % pa | Over (+)/Under(-) | Outperformance % pa |
---|---|---|---|---|---|---|
Capital Stable | CPI + 1.5% pa | 3 Years | 3.37% | 3.97% | + | 0.60% |
Balanced | CPI + 3% pa | 5 Years | 4.63% | 5.92% | + | 1.29% |
Growth | CPI + 3.5% pa | 7 Years | 5.43% | 9.54% | + | 4.11% |
Equities | CPI + 4% pa | 10 Years | 6.14% | 10.58% | + | 4.44% |
During the financial year, the Public Trustee allocated additional funds towards unlisted property and appointed a new specialist global fixed interest manager. These new investments are expected to generate a reasonable level of income, at a time where cash rates are at record lows.
2018–19 Investment Strategies’ Performance
Last 12 Months | Last 3 Years (Annualised) | Last 5 Years (Annualised) | Last 7 Years (Annualised) | Last 10 Years (Annualised) | |
---|---|---|---|---|---|
Cash | 1.92% | 1.85% | 2.09% | 2.50% | 3.23% |
Benchmark | 0.96% | 0.86% | 1.08% | 1.34% | 1.99% |
Variance | 0.96% | 0.99% | 1.01% | 1.16% | 1.24% |
Capital Stable | 3.10% | 3.97% | 4.04% | 5.12% | 5.44% |
Benchmark | 5.55% | 4.19% | 4.07% | 4.89% | 5.29% |
Variance | -2.45% | -0.22% | -0.03% | 0.23% | 0.15% |
Balanced | 4.24% | 6.12% | 5.92% | 7.70% | 7.52% |
Benchmark | 8.22% | 6.79% | 6.15% | 7.64% | 7.61% |
Variance | -3.98% | -0.67% | -0.23% | 0.06% | -0.09% |
Growth | 4.54% | 7.83% | 7.14% | 9.54% | 8.83% |
Benchmark | 8.64% | 8.50% | 7.16% | 9.36% | 8.69% |
Variance | -4.10% | -0.67% | -0.02% | 0.18% | 0.14% |
Equities | 4.45% | 11.22% | 9.09% | 12.44% | 10.58% |
Benchmark | 9.24% | 11.97% | 8.96% | 12.30% | 10.10% |
Variance | -4.79% | -0.75% | 0.13% | 0.14% | 0.48% |
The cash objective is to provide customers a very low risk strategy designed to achieve a return comparable to the 90 day bank bill rate and provide the advantage of having funds available at 24 hour call for amounts of up to $1m.
Common Fund | Allocation (%) 2018-19 | Allocation (%) 2017-18 | ||||
---|---|---|---|---|---|---|
Neutral | Period End | $m | Neutral | Period End | $m | |
Australian Shares | 10.0% | 9.9% | $13.25 | 10.0% | 10.5% | $13.13 |
Overseas Shares | 8.0% | 7.9% | $10.52 | 8.0% | 8.1% | $10.19 |
Property | 10.0% | 10.5% | $14.00 | 10.0% | 10.0% | $12.52 |
Long Term Fixed Interest | 15.0% | 14.9% | $19.87 | 15.0% | 14.8% | $18.53 |
Short Term Fixed Interest | 26.5% | 26.6% | $35.44 | 26.5% | 26.5% | $33.27 |
Overseas Fixed Interest | 12.5% | 12.1% | $16.16 | 12.5% | 12.0% | $15.05 |
Cash | 18.0% | 18.1% | $24.11 | 18.0% | 18.1% | $22.70 |
TOTAL | 100.0% | 100.0% | $133.35 | 100.0% | 100.0% | $125.39 |
Common Fund | Allocation (%) 2018-19 | Allocation (%) 2017-18 | ||||
---|---|---|---|---|---|---|
Neutral | Period End | $m | Neutral | Period End | $m | |
Australian Shares | 19.0% | 18.8% | $48.58 | 19.0% | 19.8% | $46.81 |
Overseas Shares | 16.0% | 15.8% | $40.65 | 16.0% | 16.2% | $38.28 |
Property | 20.0% | 21.0% | $54.03 | 20.0% | 19.9% | $47.00 |
Long Term Fixed Interest | 22.0% | 21.8% | $56.16 | 22.0% | 21.6% | $50.89 |
Short Term Fixed Interest | 7.0% | 7.0% | $18.05 | 7.0% | 7.0% | $16.47 |
Overseas Fixed Interest | 12.0% | 11.6% | $29.93 | 12.0% | 11.5% | $27.09 |
Cash | 4.0% | 4.0% | $10.34 | 4.0% | 4.0% | $9.46 |
TOTAL | 100.0% | 100.0% | $257.74 | 100.0% | 100.0% | $236.00 |
Common Fund | Allocation (%) 2018-19 | Allocation (%) 2017-18 | ||||
---|---|---|---|---|---|---|
Neutral | Period End | $m | Neutral | Period End | $m | |
Australian Shares | 29.0% | 28.8% | $64.79 | 29.0% | 30.0% | $65.54 |
Overseas Shares | 24.0% | 23.6% | $53.28 | 24.0% | 24.1% | $52.68 |
Property | 20.0% | 20.9% | $47.19 | 20.0% | 19.7% | $43.10 |
Long Term Fixed Interest | 12.5% | 12.4% | $27.86 | 12.5% | 12.1% | $26.51 |
Short Term Fixed Interest | 4.5% | 4.5% | $10.14 | 4.5% | 4.4% | $9.71 |
Overseas Fixed Interest | 6.0% | 5.8% | $13.06 | 6.0% | 5.7% | $12.41 |
Cash | 4.0% | 4.0% | $9.03 | 4.0% | 4.0% | $8.67 |
TOTAL | 100.0% | 100.0% | $225.35 | 100.0% | 100.0% | $218.62 |
Common Fund | Allocation (%) 2018-19 | Allocation (%) 2017-18 | ||||
---|---|---|---|---|---|---|
Neutral | Period End | $m | Neutral | Period End | $m | |
Australian Shares | 55.0% | 55.2% | $46.86 | 55.0% | 55.7% | $45.52 |
Overseas Shares | 45.0% | 44.8% | $38.07 | 45.0% | 44.3% | $36.16 |
TOTAL | 100.0% | 100.0% | $84.93 | 100.0% | 100.0% | $81.68 |
Data for previous years is available at: https://data.sa.gov.au/data/organization/attorney-general-s-dept