The following is a brief summary of the overall financial position of the agency. The information is unaudited. Full audited financial statements for 2021-22 are attached to this report.
Statement of Comprehensive Income | 2021-22 Budget | 2021-22 Actual | Variation
| 2020-21 Actual |
|---|---|---|---|---|
Total Income | 32 708 | 33 038 | 330 | 32 355 |
Total Expenses | 25 136 | 27 494 | (2 358) | 24 670 |
Net Result | 7 572 | 5 544 | (2 028) | 7 685 |
Income tax equivalent | 2 274 | 1 663 | 611 | 2 306 |
Total Comprehensive Result | 5 298 | 3 881 | (1 417) | 5 379 |
Statement of Financial Position | 2021-22 Budget | 2021-22 Actual | Variation
| 2020-21 Actual |
|---|---|---|---|---|
Current assets | 10 994 | 9 273 | (1 721) | 10 618 |
Non-current assets | 35 969 | 33 207 | (2 762) | 33 939 |
Total assets | 46 963 | 42 480 | (4 483) | 44 557 |
Current liabilities | 6 358 | 5 588 | 770 | 6 225 |
Non-current liabilities | 15 871 | 14 678 | 1 193 | 16 578 |
Total liabilities | 22 229 | 20 266 | 1 963 | 22 803 |
Net assets | 24 734 | 22 214 | (2 520) | 21 754 |
Equity | 24 734 | 22 214 | (2 520) | 21 754 |
The Public Trustee’s net result before distributions was $5.5 million in 2021-22. That was $2 million lower than budget as a result of:
- Expenses $2.3 million (9%) higher than budget. This was impacted by unrealised losses on Corporate investments ($2.7 million) as a result of investment market volatility arising from geopolitical concerns and higher inflation and interest rates in 2021-2022.
- Revenue $0.3 million (1%) better than budget primarily due to higher than normal revenue from Common Fund and superannuation investment distributions to customers in July 2021 that resulted in increased income commission to the Public Trustee.
The Public Trustee pays an annual dividend to the Department of Treasury and Finance equal to the net result after the income tax equivalent. The dividend for 2021-22 is $3.9 million (2020-21: $5.4 million).
The variations to budget in the Statement of Financial Position are primarily related to:
- Lower financial asset values due to investment market volatility in 2021-22.
- A reduction in employee benefit provisions due to an increase in the long term bond yield rate to calculate the liability and the rejuvenation scheme that resulted in the separation of some long term employees in 2021-22.
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 |
|---|---|---|
Nil | Not applicable | $0 |
Consultancies with a contract value above $10,000 each
Consultancies | Purpose | Actual payment |
|---|---|---|
Nil | Not applicable | $0 |
Total | $0 |
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.
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 | $73,532 |
Contractors with a contract value above $10,000 each
Contractors | Purpose | Actual payment |
|---|---|---|
KPMG Pty Ltd | Strategic Planning Services | $ 10,816 |
DDLS Australia Pty Ltd | Staff Training - Microsoft Dynamics 365 Fundamentals (CRM) | $ 15,741 |
DST Process Solution (Australia) | Hi-Port and Hi-Trust Customer Financial Services Reporting | $16,940 |
Authentic Workplace Relations | Legal Services | $19,943 |
Deloitte Risk Advisory Pty Ltd | ICT Capacity & Capability Review | $31,845 |
Modis | Temporary Staff* | $ 32,769 |
Peoplebank Australia Ltd | Temporary Staff* | $37,451 |
Hudson Global Resources | Temporary Staff* | $49,249 |
The Information Management Group | Customer Invoice Scanning Services | $55,826 |
Ernst & Young | Customer Investment Software Updates | $73,698 |
DXC Technology Australia Pty | Customer Relationship Management System Replacement – Developer | $76,915 |
Talent International SA Pty Ltd | Customer Relationship Management System Replacement – Programming Resource | $109,579 |
Deloitte Risk Advisory Pty Ltd | Audit Services | $116,694 |
Deloitte Risk Advisory Pty Ltd | ICT Security Assessment | $126,748 |
Hays Specialist Recruitment Pty Ltd | Temporary Staff* | $250,353 |
Deloitte Risk Advisory Pty Ltd | Customer Relationship Management System Replacement | $560,067 |
Randstad Pty Ltd | Temporary Staff* | $639,582 |
KPMG Australia Pty Ltd | Customer Relationship Management System Replacement Implementation Services | $2,182,535 |
Total | $ 4,406,751 |
*Temporary staff usage increased during 2021-22 to maintain business operations during the COVID-19 pandemic including to backfill positions while recruitment processes were underway.
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.
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.
The 2021-22 year was volatile for financial markets, with geopolitical tensions, increases in inflation and rising interest rates. These factors resulted in falls for share markets this financial year, after strong gains last year and over the past decade.
During the financial year, the Reserve Bank of Australia (RBA) increased official interest rates by 0.75%, to curb inflationary pressures. Inflation as at 30 June 2022 stood at 6.1% on an annual basis. Going forward, further interest rate rises are expected by the RBA, which will benefit the return on cash investments. Cash makes up a large portion of customer funds.
The Public Trustee has diversified investment strategies with fixed income, property and infrastructure investments, which has helped cushion returns from volatility in share markets.
For the year, investment returns ranged from 0.09% for Cash to -12.74% for Equities, net of fees. Overall the Public Trustee’s investment strategies continue to perform soundly over the long term. Ten year returns stand at 1.87% for Cash to 9.45% for Equities, net of fees. Most investment strategies were outperforming their long term objectives, however some now trail due to the recent surge in inflation (CPI).
Investment Performance versus CPI Objectives as at 30 June 2022
Investment Strategy | CPI Objective | Investment Horizon | Target Return % pa | Actual Return % pa | Over (+)/ Under(-) | Over/Under performance % pa |
Capital Stable | CPI + 1.5% pa | 3 Years | 4.68% | 0.51% | - | -4.17% |
Balanced | CPI + 2.5% pa | 5 Years | 5.14% | 3.05% | - | -2.09% |
Growth | CPI + 3.5% pa | 7 Years | 5.81% | 4.79% | - | -1.02% |
Equities | CPI + 4% pa | 10 Years | 6.31% | 9.45% | + | 3.14% |
2021–22 Standard Investment Strategies’ Performance
Last | Last | Last | Last | Last | |
Cash | +0.09% | +0.42% | +0.99% | +1.28% | +1.87% |
Benchmark | -0.90% | -0.67% | -0.05% | +0.26% | +0.73% |
Variance | +0.99% | +1.09% | +1.04% | +1.02% | +1.14% |
| |||||
Capital Stable | -4.33% | +0.51% | +1.78% | +2.38% | +3.71% |
Benchmark | -5.33% | +0.12% | +1.91% | +2.30% | +3.44% |
Variance | +1.00% | +0.39% | -0.13% | +0.08% | +0.27% |
| |||||
Balanced | -5.62% | +1.35% | +3.05% | +3.79% | +5.76% |
Benchmark | -5.66% | +1.12% | +3.54% | +3.87% | +5.64% |
Variance | +0.04% | +0.23% | -0.49% | -0.08% | +0.12% |
| |||||
Growth | -6.67% | +2.16% | +4.03% | +4.79% | +7.27% |
Benchmark | -5.94% | +2.44% | +4.81% | +4.98% | +7.24% |
Variance | -0.73% | -0.28% | -0.78% | -0.19% | +0.03% |
| |||||
Equities | -12.74% | +2.77% | +5.20% | +6.07% | +9.45% |
Benchmark | -9.54% | +3.82% | +6.54% | +6.57% | +9.68% |
Variance | -3.20% | -1.05% | -1.34% | -0.50% | -0.23% |
2021–22 Asset Allocation
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 $1 million.
2021–22 Capital Stable Standard Investment Strategy
Common Fund | Allocation (%) 2021-22 | Allocation (%) 2020-21 | ||||
Neutral | Period End | $m | Neutral | Period End | $m | |
Australian Shares | 12.0% | 10.2% | 15.29 | 10.0% | 11.0% | 16.80 |
Overseas Shares | 10.0% | 8.6% | 13.02 | 8.0% | 8.1% | 12.30 |
Property | 12.0% | 12.9% | 19.64 | 10.0% | 10.5% | 15.92 |
Long Term Fixed Interest | 16.0% | 16.3% | 24.78 | 15.0% | 14.5% | 22.00 |
Short Term Fixed Interest | 24.0% | 25.2% | 38.32 | 26.5% | 26.6% | 40.39 |
Overseas Fixed Interest | 14.0% | 13.9% | 21.15 | 12.5% | 11.4% | 17.25 |
Cash | 12.0% | 12.9% | 19.60 | 18.0% | 17.9% | 27.20 |
TOTAL | 100% | 100% | 151.80 | 100.0% | 100.0% | 151.86 |
2021–22 Balanced Standard Investment Strategy
Common Fund | Allocation (%) 2021-22 | Allocation (%) 2020-21 | ||||
Neutral | Period End | $m | Neutral | Period End | $m | |
Australian Shares | 23.0% | 20.0% | 52.15 | 20.5% | 20.8% | 56.83 |
Overseas Shares | 16.0% | 14.2% | 37.10 | 12.0% | 16.0% | 43.79 |
Property | 22.5% | 25.1% | 65.52 | 22.5% | 20.7% | 56.67 |
Long Term Fixed Interest | 16.0% | 16.9% | 44.08 | 19.0% | 20.9% | 57.33 |
Short Term Fixed Interest | 6.0% | 6.5% | 17.05 | 7.0% | 6.9% | 18.97 |
Overseas Fixed Interest | 13.0% | 13.4% | 34.95 | 15.0% | 10.8% | 29.44 |
Cash | 3.5% | 3.9% | 10.17 | 4.0% | 3.9% | 10.75 |
TOTAL | 100% | 100% | 261.02 | 100.0% | 100.0% | 273.78 |
2021–22 Growth Standard Investment Strategy
Common Fund | Allocation (%) 2021-22 | Allocation (%) 2020-21 | ||||
Neutral | Period End | $m | Neutral | Period End | $m | |
Australian Shares | 29.0% | 25.8% | 56.26 | 29.0% | 31.1% | 74.62 |
Overseas Shares | 24.0% | 21.8% | 47.63 | 24.0% | 23.5% | 56.50 |
Property | 24.0% | 27.4% | 59.82 | 20.0% | 20.3% | 48.73 |
Long Term Fixed Interest | 10.0% | 10.8% | 23.59 | 12.5% | 11.7% | 28.01 |
Short Term Fixed Interest | 4% | 4.5% | 9.73 | 4.5% | 4.4% | 10.49 |
Overseas Fixed Interest | 6% | 6.3% | 13.80 | 6.0% | 5.3% | 12.65 |
Cash | 3% | 3.4% | 7.46 | 4.0% | 3.7% | 9.25 |
TOTAL | 100% | 100% | 218.29 | 100.0% | 100.0% | 240.25 |
2021–22 Equities Standard Investment Strategy
Common Fund | Allocation (%) 2021-22 | Allocation (%) 2020-21 | ||||
Neutral | Period End | $m | Neutral | Period End | $m | |
Australian Shares | 55.0% | 54.4% | 39.28 | 55.0% | 57.2% | 52.86 |
Overseas Shares | 45.0% | 45.6% | 32.87 | 45.0% | 42.8% | 39.56 |
TOTAL | 100% | 100% | 72.15 | 100.0% | 100.0% | 92.42 |
Data for previous years is available at: https://data.sa.gov.au/data/organization/attorney-general-s-dept