NSW SPORTING INJURIES COMMITTEE ANNUAL REPORT 09/10

Transcription

1 NSW SPORTING INJURIES COMMITTEE ANNUAL REPORT 09/10

2 letter to the minister 27 October The Hon. Michael Daley MP Minister for Finance Minister for Police Parliament House Macquarie Street Sydney NSW 2000 Dear Minister In accordance with the Annual Reports (Statutory Bodies) Act 1984, I have pleasure in submitting for your information and presentation to Parliament, the Annual Report of the NSW Sporting Injuries Committee for the financial year ended 30 June. Yours sincerely (signed) Lisa Hunt Chair NSW Sporting Injuries Committee

3 contents Year in review 2 About us 4 Chair s report 5 Our corporate governance 6 Our strategic performance 9 Our business 11 Snapshots at the awards 14 Our community 16 Our customers 17 Our insurance business 22 Financial statements 28 Appendices 52 Our administration 54 ANNUAL REPORT /10 1

4 YEAR IN REVIEW The NSW Sporting Injuries Committee has achieved significant outcomes in. The Committee improved the right to benefits for injured participants by lowering permanent disability thresholds with no increases in premium rates. Financial reserves were strengthened even with considerable benefits being paid during the year. Exciting and innovative safe sport practices and injury prevention initiatives were submitted under the Research and Injury Prevention Scheme and recognised at the NSW Sports Safety Awards. 14% decrease in 6% claims liabilities increase in sporting participants covered 0% no increases in premium rates for 10 years Membership participants from 2005 to Participants Years NSW SPORTING INJURIES COMMITTEE

5 mission To reduce the personal impact of injuries in sport through the support of appropriate preventative initiatives and to reduce the financial impact of injuries in sport through the provision of affordable, statute based serious injury insurance. ANNUAL REPORT /10 3

6 ABOUT US The NSW Sporting Injuries Committee is a non-profit, self-funded statutory organisation established in 1978 by the New South Wales Government to provide affordable sports injury insurance and to promote safe sport practices to the sporting community. The Committee delivers its legislative responsibilities under the Sporting Injuries Insurance Act 1978 through four different schemes: Sporting Injuries Insurance Scheme provides affordable serious injuries insurance to NSW sporting organisations. Supplementary Sporting Injuries Benefits Scheme provides State Government funded serious injuries cover to all NSW school children. NSW Sports Safety Awards Scheme recognises and rewards outstanding achievement in research, the development of injury preventative measures and the promotion of safe sport practices. Research and Injury Prevention Scheme provides grants for research into sports injury preventative measures. The NSW Sporting Injuries Committee and its operations are unique to the state of New South Wales. MINISTER FOR FINANCE MINISTER FOR INDUSTRIAL RELATIONS WORKERS COMPENSATION COMMISSION (STAFF AND FUNDING) CHIEF EXECUTIVE COMPENSATION AUTHORITIES STAFF DIVISION WORKCOVER AUTHORITY NSW SPORTING INJURIES COMMITTEE MOTOR ACCIDENT AUTHORITY LIFETIME CARE & SUPPORT AUTHORITY DUST DISEASES BOARD LONG SERVICE PAYMENTS CORPORATION SECRETARIAT 4 NSW SPORTING INJURIES COMMITTEE

7 CHAIR S REPORT It is with pleasure that I present to you the 26th Annual Report of the NSW Sporting Injuries Committee covering the financial year ended 30 June. The Committee s legislative function is to improve the safety of the community when participating in sport through encouragement of safe sport practices and the provision of affordable insurance for serious sporting injuries. NSW Sports Safety Awards It was another great year for sports safety in NSW with many innovative projects celebrated at the 12th anniversary of the NSW Sports Safety Awards. The Committee encourages outstanding initiatives in sports safety and injury prevention and formally recognises the contribution of researchers, schools and sporting organisations at the Awards. The importance of safety in and around water was a central theme with the University of New South Wales winning in the Team Research category for its significant work in analysing and educating the community on the issues surrounding beach safety. Continuing the water safety theme, a collaboration between NSW Maritime, North Sydney Central Coast Area Health Service and NSW Sport & Recreation won for developing a swimming and boating code to safely share the water ways at Terrigal. Other state winners included Gymnastics NSW for compiling a comprehensive risk management program for their highly technical sport and the Injury Risk Management Research Centre for developing practical strategies for cycling infrastructure in consultation with advocacy groups. The Committee congratulates all award winners. Sports Injury Prevention Research The Committee is proud of its ongoing investment in sports injury prevention research. Two projects were completed in the financial year contributing to greater safety in both junior rugby league and public pools. A Comparison of the type and incidence of injury under the 5 vs 10 metre rule in Junior Rugby League by NSW Rugby League provided imperical data that less injuries occur when the play the ball defensive line is reduced to five metres. The project supported the rule change for all Under 13 and Under 14 rugby league competitions. The Royal Lifesaving NSW s Public Pool Injury Surveillance Program developed an on-line database in consultation with commercial aquatic facilities to collect and analyse the type of injuries that occur at public swimming pools. Future data analytics will support updates of the industry s Guidelines for Safe Pool Operations. Finances Aligned with the upturn in financial markets, the Committee has reversed its results to return a surplus of $306,000 for the - financial year. The Committee is non-profit and relies upon investment returns to supplement premium income. The surplus generated has increased reserves to a healthy $732,000. During the year, the Committee was pleased to amend its legislation to improve claimants access to legislated benefits by reducing the permanent disability threshold percentages for injured arms, legs and hearing. This was achieved without increasing premium rates to member sporting organisations. The Committee thanks Jon Blackwell (Chair), Dr John Orchard (long term Committee member), Murray McLachlan (Deputy Chair) and Rob Thomson (acting Chair) for their efforts in ensuring the Committee s ongoing success in reducing the incidence, severity and financial burden of sports injuries across New South Wales. In addition, I would like to thank the Committee for their contribution to the business strategy and direction. I also thank our staff for their commitment and drive to provide a service to our customers and all our stakeholders. (signed) Lisa Hunt Chair NSW Sporting Injuries Committee ANNUAL REPORT /10 5

8 OUR CORPORATE GOVERNANCE The NSW Sporting Injuries Committee delivers its legislative responsibilities under the Sporting Injuries Insurance Act Statutory Functions The Sporting Injuries Insurance Act 1978 (the Act) confers on the Committee the following specific obligations and responsibilities: (a) the compilation and maintenance of such statistics with respect to the incidence of injuries resulting from sporting or athletic activities as the Committee considers would assist it in the performance of the functions given to it by or under the Act or any other Act (b) co-operation with organisations concerned in the regulation and conduct of sporting or athletic activities and the Department of Sport and Recreation and the Department of Education and Training for the purpose of initiating, developing, encouraging and implementing such policies as are likely to eliminate or reduce the incidence of injuries resulting from sporting or athletic activities (c) when requested by the Minister to do so, the examination of and reporting to the Minister on the desirability of extending the Scheme provided by the Act (d) the performance of such other functions as are given to it by or under the Act or any other Act. Constitution The NSW Sporting Injuries Committee is a corporation constituted under the Sporting Injuries Insurance Act It consists of seven members, a Chairman and six other members on the nomination of the Minister for Finance, the Minister for Education & Training and the Minister for Sport & Recreation. Committee members are appointed by the Governor for a period of up to three years. The legislation Sporting Injuries Insurance Act 1978 declares that the Chief Executive Officer of the WorkCover Authority of New South Wales is the Chairman of the Committee. WorkCover NSW and the Committee are part of the Compensation Authorities Staff Division (CASD). The Chief Executive Officer of WorkCover NSW is also the Chief Executive of CASD. CASD was formed as part of the NSW Government s creation of Principal Agencies in July. The CASD group sits within the Treasury portfolio. Other agencies in the CASD group are: Dust Diseases Board Lifetime Care and Support Authority Long Service Payments Corporation Lisa Hunt In January, Lisa Hunt was appointed Chief Executive Officer, WorkCover NSW and Chief Executive, Compensation Authorities Staff Division, which oversees the offices of WorkCover NSW, Dust Diseases Board, Motor Accidents Authority, Lifetime Care and Support Authority, Long Service Payments Corporation and the NSW Sporting Injuries Committee. By virtue of being the Chief Executive Officer of WorkCover NSW, Lisa is also the Chair of the Committee under the Act. Lisa was previously a senior executive at Transurban Limited (an ASX listed international toll road owner, operator and developer) for seven years. Lisa has significant experience on private and public sector boards including Westlink Limited, Sydney Catchment Authority, Queensland Rail, Infrastructure Partnerships Australia and the Greater Western Sydney Economic Development Board and a number of infrastructure boards. Lisa commenced her career in law before working in government in a range of sectors including immigration, regulatory systems, transport and infrastructure development. Mary Hawkins As the Acting General Manager of the Workers Compensation Division of WorkCover NSW, Mary has the delegated role of Deputy Chair of the NSW Sporting Injuries Committee. Substantively, Mary Hawkins is Director of the Provider and Injury Management Services Group of WorkCover NSW. This group is responsible for designing the frameworks that enable service providers to effectively participate in the workers compensation system in NSW and to improve the services available to injured workers and their employers. Motor Accidents Authority The Committee ultimately reports to the Hon. Michael Daley MP, the Minister for Finance. 6 NSW SPORTING INJURIES COMMITTEE

9 Darryl Clout Darryl Clout was appointed to the Committee in May Darryl has spent more than 20 years working in an advisory capacity to State Government Ministers mainly chief of staff, media advisor or senior advisor in various portfolios including transport, education, police and sport and recreation. Darryl was appointed to his current position of General Manager, NSW Sport and Recreation in 2005 and is responsible for the sport and recreation centres and various trusts as well as the grants programs the agency provides in areas of facility and program development. He is the departmental representative on a number of boards and committees including the State Sports Centre Trust and the NSW Sport and Recreation Advisory Council. Darryl has also been involved in community sport particularly softball for more than 20 years and was a Softball Australia Board Member between 1996 and and is currently Oceania Vice President of the International Softball Federation. Ron Muratore Dr Ron Muratore was appointed to the Committee in September. Ron operates a general practice where he has an interest in workplace rehabilitation, overuse injuries, paediatric sports medicine and exercise induced leg pain specialising in compartment syndrome. Ron is also a prominent sports physician, who has been involved in the sporting community for the past 30 years culminating in being appointed as the Medical Director for the 2008 Rugby League World Cup and as the Chief Medical Officer of the National Rugby League in. He has also lectured to community based sporting clubs, professional bodies and general practitioners on all aspects of sports injuries and injury prevention. Ron has been an active member of Sports Medicine Australia since 1980 where he has held several Committee positions; he is a member of the Australian Medical Association and is a Fellow of the Australasian College of Sports Physicians. Peter Corcoran OAM Peter Corcoran OAM was initially appointed to the Committee in Peter has been involved in rugby league for over 30 years. He was the ARL National Coaching, Refereeing and Education Manager and now fulfils the role of consultant to rugby league national and state education committees. Peter s dedication to safety in sport is well known and documented. He is a long-time member of both Sports Medicine Australia and the Australian Council for Health, Physical Education and Recreation. He was Chairman of the ASC Australian Coaching Council for many years in the latter part of the 1990 s; a Board Member of the NSW Sports Federation throughout and long-standing Board Member of SpineSafe/YouthSafe Ltd. Peter is currently a Director of the Newcastle Knights Rugby League Football Club and a consultant to many sport and recreation academies sporting committees and disability sports. Grant Parker Grant Parker was appointed to the Committee in July Grant is the Executive Officer of the Secondary Sports Division at the NSW School Sports Unit. He has extensive experience in the administration of school sports at state and national levels through his role as Executive Officer of the NSW Combined High Schools (CHS) Sports Association, a role he has held since Grant has been a member of a number of committees over the years, including the Public School Sports Council, The Talented Child in Sport Committee, the Centenary of School Sport Committee and the Personal Development, Health and Physical Education K-6 Committee. In 1992 he co-ordinated the integration of the non-government school sporting associations into the NSW Combined High School program, which now forms the NSW All Schools Sporting Program. As well as his general knowledge of sport and how it is administered within the public school system, Grant is involved at a community level being an accredited rugby and water polo referee and is a keen participant in surfing and skiing. ANNUAL REPORT /10 7

10 Attendance Records / Meetings The Committee held seven meetings during the financial year. APPOINTMENT EXPIRES MEETINGS ATTENDED Eddie Price Dr Eddie Price was appointed to the Committee in October Eddie brings to the Committee considerable experience as he is a physician working in the field of workers compensation and rehabilitation. Eddie has a career interest in preventive medicine, working in health administrative advocacy with a particular interest in utilising health outcomes to promote a preventive focussed health care system. For the past 25 years Eddie has worked in private practice and as a consultant to corporations and the insurance industry in occupational health and health management, with an emphasis on preventive health care. Eddie served on the Board of WorkCover NSW for seven years and recently completed writing his third book on changing the health system, advocating for a renewed focus based on a measurable health related quality of life. MEMBER Lisa Hunt* Not applicable 0 Jon Blackwell Chair** Mary Hawkins Deputy Chair*** Murray McLachlan Deputy Chair*** Rob Thomson Deputy Chair*** Not applicable 1 Not applicable 1 Not applicable 3 Not applicable 2 Darryl Clout 7 May Peter Corcoran 23 June Dr Ron Muratore 15 September Dr John Orchard 12 October 1 Grant Parker 11 July 5 Dr Edward Price 15 September Amy Winters 13 August Amy Winters oam Amy Winters (OAM) was appointed to the Committee in September She works with the Australian Paralympic Committee (APC) as the organisation s Marketing Services and Sponsorship Manager. Amy has previously worked with Paralympic athletes and their coaches to improve the profile, awareness and pathways for athletes with a disability. Prior to joining the APC, Amy developed her experience in strategic management and understanding the needs of sports people with a disability at the NSW Sports Council for the Disabled. In addition, Amy is an accomplished Paralympian regarded as one of Australia s best female track athletes. During her career, she claimed 13 medals, including eight gold medals, at various Paralympic Games and World Championships. * Ms Lisa Hunt is unable to attend Committee meetings delegating her responsibilities to the Deputy Chair. ** Mr Jon Blackwell resigned as the Chief Executive Officer of WorkCover NSW in October. *** The change in Deputy Chair personnel has occurred due to changes in the reporting structure of WorkCover NSW. 8 NSW SPORTING INJURIES COMMITTEE

11 our strategic performance OUTCOMES RESULTS OBJECTIVE Provide an equitable, affordable and selffunded serious injury insurance scheme for New South Wales sporting organisations Increase and broaden participation in the insurance scheme within the New South Wales sporting community Provide a Governmentfunded insurance scheme for students participating in organised school sporting activities and participants in approved programs of NSW Sport and Recreation Initiate, support and promote efforts to reduce the incidence of injuries resulting from sporting activities in New South Wales The Sporting Injuries Insurance Scheme offers affordable serious injury cover to NSW sporting organisations subject to the Committee s approval. Premium rates have not increased since 2001 ensuring all NSW sporting organisations and their participants have access to affordable serious sporting injuries insurance. Claimants rights to benefits were improved with the lowering of the permanent disability threshold for serious arm, leg and hearing injuries. Seven serious injury claims were finalised under the Sporting Injuries Insurance Scheme with benefits totalling $440,000 ( $364,000): the largest amount of benefits paid since The Committee remains in a strong financial position to meet future claims with reserves strengthened to $732,000 ( $426,000). Total participation within the Scheme increased to 178,000 participants ( 167,000). 160 member sporting organisations were covered at year end across 75 different sports ( 163). The Scheme s fault free insurance was promoted across the state using electronic media, direct mail-outs, advertising within sports specific journals, conference promotions and presentations. The Supplementary Sporting Injuries Benefits Scheme offers free serious injury cover to all New South Wales school children. Three claims totalling $92,000 ( $175,000) were paid under the Supplementary Scheme. The Supplementary Scheme was promoted to schools with the assistance of the School Sports Unit Department of Education & Training and The Federation of Parents and Citizens Associations of NSW. The Supplementary Scheme was advertised within school sport related websites and sports specific journals and by direct mail. The Committee coordinates two major injury prevention initiatives: The Research and Injury Prevention Scheme: Six innovative sports injury preventative research projects were approved for funding at a total cost of $99,000 (excluding GST). Two research projects were completed which will contribute to improved safety in junior rugby league and recreational pool use. The NSW Sports Safety Awards Scheme: The 12th anniversary of the NSW Sports Safety Awards was celebrated in highlighting the community s regard and involvement in developing and implementing safe sport practices. Achieved Achieved Achieved Achieved The Committee was not presented with any economic factors, problems or issues in meeting its legislative operational responsibilities. No performance or strategy reviews have been conducted in the recent financial year. ANNUAL REPORT /10 9

12 Future Direction In the year ahead, the Committee will continue to build upon its established business of providing affordable and equitable insurance to sporting organisations and school children and preventing serious sporting injuries across New South Wales through sports injury prevention research grants and encouraging safe sport practices at the NSW Sports Safety Awards. The Committee aims to: increase participation in the Sporting Injuries Insurance Scheme by 5 per cent to ensure a greater number of New South Wales sportspeople are properly covered for serious sporting injuries continue to promote the Supplementary Sporting Injuries Benefits Scheme across all schools to ensure school children are compensated for their serious sporting injuries increase the number of nominations for the NSW Sports Safety Awards by 10 per cent to encourage greater safe sports practices within New South Wales increase the number of research grant nominations involved with sporting organisations by 10 per cent to encourage the implementation of sports injury prevention research being funded. 10 NSW SPORTING INJURIES COMMITTEE

13 our business The NSW Sporting Injuries Committee s function is to administer and control the Sporting Injuries Insurance Scheme, the Supplementary Sporting Injuries Benefits Scheme, the Research and Injury Prevention Scheme and the NSW Sports Safety Awards. THE SPORTING INJURIES INSURANCE SCHEME The Sporting Injuries Insurance Scheme was established under the Sporting Injuries Insurance Act 1978 to provide serious sporting injuries cover to sporting organisations. The major influences, which led to the creation of the Sporting Injuries Insurance Scheme in 1978, were: a significant rise in serious spinal accidents, specifically in rugby league and rugby union in the late 1970 s the potential for athletes to qualify as workers under workers compensation legislation in the event of injury and the financial implications of this on sporting clubs. Following a landmark judgement by the Workers Compensation Commission of NSW in February 1977, a committee of inquiry was established by the then NSW Government to explore a means of accommodating injured sportspersons including professionals. The creation of the Sporting Injuries Insurance Scheme was the culmination of that inquiry. The Sporting Injuries Insurance Act 1978 was enacted by the NSW Parliament in December The NSW Sporting Injuries Committee was constituted by the same Act as the operator of the Sporting Injuries Insurance Scheme. The Scheme covers registered participants of sporting organisations for injury while engaged in specified activities or events. The Scheme provides capital lump sum benefits for injuries that lead to a prescribed percentage of permanent loss of use or fatality. The benefits are paid from the Sporting Injuries Fund. THE SPORTING INJURIES FUND The Committee has established, administers and controls a fund called the Sporting Injuries Fund under section 11 of the Act. The Sporting Injuries Fund is used primarily for: paying benefits to registered participants costs of the District Court associated with the determination of benefits investment providing grants for research and injury prevention projects under the Research and Injury Prevention Scheme providing awards under the NSW Sports Safety Award Scheme meeting the administration costs of the Scheme. THE SUPPLEMENTARY SPORTING INJURIES BENEFITS SCHEME The Supplementary Sporting Injuries Benefits Scheme was established in October 1984 as a non-contributory Scheme funded by the NSW Government. It provides capital lump sum benefits for injuries that lead to a prescribed percentage of permanent loss of use or fatality to: children who are seriously injured while participating in organised school sport or athletic activities persons likewise injured while participating in certain programs of activity conducted or sanctioned by NSW Sport & Recreation. The benefits are paid from the Supplementary Sporting Injuries Fund. THE SUPPLEMENTARY SPORTING INJURIES FUND The Committee has established, administers and controls a fund called the Supplementary Sporting Injuries Fund under section 11A of the Act. The Supplementary Sporting Injuries Fund exists as a facility for: the payment of benefits to eligible applicants under the Supplementary Sporting Injuries Benefit Scheme meeting the administration costs of the Supplementary Sporting Injuries Benefit Scheme. NSW SPORTS SAFETY AWARDS The NSW Sports Safety Awards are a unique initiative of the NSW Government to encourage greater safe sport participation. No other state government recognises and rewards the incredible initiatives of sports medicine researchers, sporting organisations and schools to develop and promote safe sport practices. Friday 13th is supposed to be an unlucky day for most people. However for the winners of the NSW Sports Safety Awards it was the luckiest of days! On Friday 13th November, key representatives from sporting bodies and state government recognised the great initiatives of the winners who have made sport in New South Wales safer. There are three major award categories: 1. Outstanding education and promotion of safe sport practices 2. Outstanding implementation and adoption of safe sport practices 3. Outstanding achievement in applied research in sports medicine by a research team. ANNUAL REPORT /10 11

14 Education and Promotion In the first major award category, Gymnastics NSW narrowly won the gold award at state level for their Raising the Bar Member Protection and Harrassment Free Program. The program provided their 180 state wide associations and clubs comprehensively tailored risk management policies and procedures in behaviour management, complaints procedures, codes of conduct and member protection policies with the aim of having a trained Member Protection Officer in all clubs. Football NSW took home the silver award for their Working with Kids Seminar Series which was presented to all coaches and managers in the elite youth leagues while the Riding for the Disabled Association (NSW) was successful in winning the bronze award for its simple but effective Handy Hints for Helpers posters. In the regional category, the combined efforts of NSW Maritime, Northern Sydney Central Coast Area Health Service and NSW Sport & Recreation rose to the top to earn the gold award for their innovative Terrigal Ocean Swimmers Code. The code was developed with community input to separate the Terrigal Haven water-way between ocean swimmers and boaters with new colourful buoys erected to indicate different routes for each. The regional silver award went to Hawkesbury River Rescue for their water and speed boat safety program while bronze went to the collaboration between the School of Human Movement Studies, Charles Sturt University and Western Regional Academy of Sport for the development of a Strength and Conditioning Internship Program. Safe Sport Practices The Injury Risk Management Centre (IRMRC) at the University of New South Wales was the state level gold winner in safe sport practices for bringing together representatives of cycling advocacy groups, road safety advocacy groups, health and transport and many other organisations to discuss current practice relating to key issues for cycling safely and to identify future directions. The result was the development of practical strategies for cycling infrastructure, cycle lanes and share road facilities. Football NSW won silver for its extensive goal post work to prevent deaths or injuries from falling portable goalposts. Following an audit conducted by Football NSW in October 2008, safety notice stickers and instructions were issued to all clubs. PCYC Football Club won bronze for encouraging safe participation in rugby league by their local Sudanese immigrants. In the school category Jasper Road Public School were awarded gold for the second year running for safe sport practices. This year the school won for its modified wheelchair basketball and football rules for students in wheelchairs or walkers. Silver was presented to Carlton Public School, first time entrants, for its Pogo Pulse Stick Program a very unique fitness safety program while Ulladulla School, another first time entrant, received bronze for its safety programs across the sports of fitness, swimming, cross country and athletics. Applied Research The University of New South Wales took out the gold award in the category Outstanding achievement in applied research in sports medicine by a research team for their comprehensive and effective Science of the Surf research project. Drowning is ranked fourth as the leading cause of death in Australia with lifesavers performing more than 9000 rescues and first aid on 26,000 people a year. The three year UNSW research project looked at the main issues for beach safety in order to develop, implement and evaluate an evidence based beach safety campaign to raise awareness of beach hazards and so reduce coastal drowning and injury. Based on survey results, a campaign was developed, Don t be sucked in by the Rip which involved media releases, quick rip quizzes, distributed materials and presentations. The silver award went to the University of Canberra for its Snowsport Safety Project: A focus on hydration and the bronze award to School of Exercise Science, Australian Catholic University for its initial review of Musculoskeletal Health of Apprentice Jockeys. The NSW Sporting Injuries Committee thanks its awards sponsor, Peter Wynn Score, for its wonderful support of the awards. Peter Wynn Score s continued involvement and support contributes to the ongoing success of the awards. The Committee would also like to thank the talented sports medicine researchers, sporting organisations and schools throughout the State for their enthusiasm and initiatives with which they have embraced these awards over its twelve year history. The Disabled Surfers Association was awarded bronze for their unique colour coding of vests for volunteers and participants to ensure event organisers know the state of play of surfers and volunteers at any one time as some severely disabled participants require 30 volunteers to safely surf. In the regional safe sport practices category, the Alexandria Rovers Junior Rugby League Football Club won gold for persevering with the local council to successfully have a safety barrier erected on an eight metre tall grand stand after identifying it as a potential fatal risk. Monaro Panthers Football Club instigated two St John first aid officers on duty at all home games to win silver while Blacktown 12 NSW SPORTING INJURIES COMMITTEE

15 NSW SPORTS SAFETY AWARD WINNERS CATEGORY GOLD AWARD SILVER AWARD BRONZE AWARD Outstanding education and promotion of safe sport practices state Gymnastics NSW Football NSW Riding for the Disabled Association (NSW) Outstanding education and promotion of safe sport practices regional/club NSW Maritime, Northern Sydney Central Coast Area Health Service and NSW Sport and Recreation Hawkesbury River Rescue Inc. School of Human Movement Studies, Charles Sturt University and Western Region Academy of Sport Outstanding implementation and adoption of safe sport practices state NSW Injury Risk Management Research Centre Football NSW Disabled Surfers Association of Australia Inc. Outstanding implementation and adoption of safe sport practices regional/club Peter Wynn s Score Award Alexandria Rovers Junior Rugby League Football Club Monaro Panthers Football Club Inc Blacktown PCYC Junior Rugby League Club Outstanding implementation and adoption of safe sport practices school Outstanding achievement in applied research by a research team Jasper Road Public School Carlton Public School Ulladulla Public School University of NSW University of Canberra School of Exercise Science, Australian Catholic University, Strathfield ANNUAL REPORT /10 13

16 Snapshots at the Awards 14 NSW SPORTING INJURIES COMMITTEE

17 THE RESEARCH AND INJURY PREVENTION SCHEME The New South Wales Government established the Research and Injury Prevention Scheme in 1991 to provide funding for research into prevention and reduction in the number of serious injuries in sport. Since the Scheme s inception, the Committee has provided grants totalling $1,793,145 (excluding GST) to further research sports injury prevention with over 70 research projects completed. Under the Scheme allocation, the Committee approved $130,000 (excluding GST) for the following new and exciting research projects: $5923 to Macquarie University to analyse the incidence and severity of injuries that occur among taekwondo athletes competing at NSW state championships in to identify potential risk factors with a view to improving injury prevention. $16,560 to the University of Canberra to study the effectiveness of wrist guard use for upper limb injury prevention in snowsports as it has been suggested that wrist guards alter the location of injury but not the number of injuries. $12,134 to Youthsafe to carry out a review of injury records and injury recording processes for Basketball NSW to develop evidence-based prevention strategies. $13,279 to the University of Wollongong to research whether or not a higher incidence of anterior cruciate ligament injury in females, compared to males, in team sports is related to differences in cutting movement patterns and neuromuscular control patterns. $36,454 to the University of NSW for a pilot study in applying a theory informed approach to the diffusion of safety initiatives in community level sport. This follows the development of the NSW Sports Safety Framework in earlier research. $14,923 to Southern Cross University to determine the level of knowledge and current safe practices in surfing through the use of an online survey. $30,000 to University of Ballarat as part of a National Health and Medical Research Centre link grant involving other leading sports injury prevention researchers and practitioners. The project will span four years researching the ongoing developments and directions for an approach to sports safety policy and practice at a national level by using Australian Football as a test example. Research Results Two important research projects were completed during the year: A comparison of the type and incidence of injury under the 5 vs 10 metre rule in Junior Rugby League There was a perception by football officials that reducing the 10 metre play-the-ball rule to a five metre rule would reduce the rate of injuries in junior rugby league. This was due to the reduced velocity of collisions whilst encouraging lateral movement of the ball away from the play-the-ball area, resulting in fewer players in the tackle. However, no formal research existed to support this premise. Funding was provided to observe two junior rugby league associations and test the theory. The results of the research did reveal a decrease in the severity of injury in the five metre game as well as a reduction in the momentum of velocity and impact. As a consequence of the research conducted, the Board of Australian Rugby League approved the permanent implementation of the five metre rule for all Under 13 and Under 14 competitions nationally from the commencement of the season. Public Pool Injury Surveillance program The aim of Royal Life Saving NSW (RLS NSW) project was to develop an online collection tool for use by commercial aquatic facilities to collect and analyse the type of injuries that occur at public swimming pools. Following extensive consultation, the on-line Public Pool Injury Report System was developed. The collection of incident data will allow reporting and statistical data to be reviewed leading to the continual improvement of industry standards and the development of specific guidelines for improvements in the industry s Guidelines for Safe Pool Operations. Copies of the above research reports and other reports across a wide spectrum of sports and injury prevention projects can be found on our website ANNUAL REPORT /10 15

18 our community Sponsorship of NSW Sports Federation The NSW Sporting Injuries Committee is proud to continue its support of the NSW Sports Federation and promote safe play by sponsoring the Coach of the Year award. The Coach of the Year is awarded at the NSW Sports Awards: a glittering event held annually in front of 500 people representing state sporting organisations and government departments. In this prestigious award was awarded to Songliang Xiong, the New South Wales Institute of Sport (NSWIS) Gymnastics Coach. The NSWIS Men s Artistic Gymnastics Program aims to support the daily training needs of elite gymnasts to prepare them for the rigours of international competition. Xiong has led this program since 1998, coaching the international gymnast Prashanth Sellathurai to place third on the pommel horse at the World Championships and second at the Moscow World Cup. Xiong also coaches junior international gymnasts and mentors junior coaches. Songliang was delighted to win the award given the quality of the other nominees who included Gavin Godfrey (dragon boats), Denis Knowles (track and field), Matthew Mott (cricket) and Grant Stoelwinder (swimming). The NSW Sports Federation represents New South Wales sporting organisations as the Voice of New South Wales Sport and provides advocacy, education, recognition and support of the sports industry in the state. Supporting Women in Sport For a sixth consecutive year, the NSW Sporting Injuries Committee was a proud sponsor of Womensport and Recreation NSW (WRNSW). WRNSW represents more than a million women and schoolgirl athletes involved in sport across the state. The Committee s sponsorship contributes towards WRNSW s achievement of its important mission to To facilitate full and safe participation, access and equity for females through sport and active recreation. WRNSW undertakes a number of major inspirational activities throughout the year including Breakfast with the Stars where schoolgirls are able to share breakfast and discuss sporting careers with their sporting heroines and the Breakfast Club Series where sporting administrators are able to develop and be inspired at informative seminars while networking with their peers. deputy chair Murray McLachlan with coach of the year Songliang Xiong 16 NSW SPORTING INJURIES COMMITTEE

19 our customers Sporting Injuries Insurance Scheme members The Sporting Injuries Insurance Scheme provides affordable, fault free personal injury insurance to sporting organisations within New South Wales. Sporting organisations become members by applying to the Committee for cover. Participation in the Scheme increased in to 178,000 members ( 167,000) across 75 different sports. The increase is due to two large amateur football (soccer) associations joining the Scheme in addition to eleven other smaller sporting organisations. These organisations recognise the advantages of being covered by the Committee s fault free insurance where benefits are paid regardless of pre-existing conditions. Overall, rugby league remains the largest participant sport in the Scheme with a total of 92,000 participants or 52 per cent of total membership. Football was the second largest participant sport with 54,000 members (30 per cent), an increase of 5 per cent of participants covered. The Committee will continue to promote the Sporting Injuries Insurance Scheme to ensure that all sports people in NSW have access to fault free player accident insurance cover. Distribution of Sporting Injuries Insurance Scheme Membership Section 5A Insurance Exemption Organisations During the financial year /, there were three member sporting organisations NSW Basketball, NSW Cricket and NSW Rugby Union who successfully applied for Section 5A insurance exemptions for their approved private insurance policies. The insurance exemption is approved on an annual basis when it is determined by the Committee that the private insurance policies of the sporting organisations have benefits equal to or better than the benefits provided under the Sporting Injuries Insurance Scheme. The insurance exemption levies charged by the Committee are exclusively applied to fund sports injury prevention initiatives. A total of 141,000 ( 145,000) participants were covered under the approved private policies permitted by the Section 5A insurance exemption. Participation in Private Schemes with Section 5A Insurance Exemptions Organisation Adult Juniors Total NSW Basketball 19,000 28,000 47,000 NSW Cricket 36,000 44,000 80,000 3% Fishing 30% Football 3% Track and Field 2% Shooting 10% Other 52% Rugby League NSW Rugby Union 14, ,000 Total 69,000 72, ,000 Supplementary Sporting Injuries Benefits Scheme Participants The Supplementary Sporting Injuries Benefits Scheme provides free serious injury cover to all public, catholic and independent school children in New South Wales. Schools do not have to elect to join the Supplementary Scheme as all school children are automatically covered. The same capital benefits provided under the Sporting Injuries Insurance Scheme are provided to all school children under the Supplementary Scheme. The Supplementary Sporting Injuries Benefits Scheme also provides cover for participants of some Communities, NSW Sport & Recreation programs. ANNUAL REPORT /10 17

20 SCHEDULE OF SPORTING INJURIES insurance SCHEME MEMBERSHIP / SPORTS PARTICIPANTS YEAR ENDED 30/06/10 YEAR ENDED 30/06/09 YEAR ENDED 30/06/10 YEAR ENDED 30/06/09 ADULTS NON ADULTS TOTAL ADULTS NON ADULTS TOTAL Sport Aquarobics Archery Australian Football Badminton Baseball Basketball Bias Bowling Bmx Boardriding/Surfboard Riding Bodyboarding Boxing (Amateur) Cage Fighting Callisthenics Canoeing Clay Shooting Cricket Croquet Cycling Dragon Boat Racing Tentpegging/Equestrian Fishing Football (Soccer) ,400 30,778 45,178 11,094 22,916 34,010 Fun Exercises Futsal Future Stars Golf Gymkhana Hockey Ice Hockey Ice Skating Indoor Bowls Judo Ju Jitsu Karate Karting Kung Fu Lawn Bowls Lifeball Line Dancing NSW SPORTING INJURIES COMMITTEE

21 Sport OFFICIALS TOTAL COVER YEAR ENDED 30/06/10 YEAR ENDED 30/06/09 YEAR ENDED ADULTS NON ADULTS TOTAL ADULTS NON ADULTS TOTAL 30/06/10 YEAR ENDED 30/06/09 Aquarobics Archery Australian Football Badminton Baseball Basketball Bias Bowling Bmx Boardriding/Surfboard Riding Bodyboarding Boxing (Amateur) Cage Fighting Callisthenics Canoeing Clay Shooting Cricket Croquet Cycling Dragon Boat Racing Tentpegging/Equestrian Fishing Football (Soccer) ,610 42,006 Fun Exercises Futsal Future Stars Golf Gymkhana Hockey Ice Hockey Ice Skating Indoor Bowls Judo Ju Jitsu Karate Karting Kung Fu Lawn Bowls Lifeball Line Dancing ANNUAL REPORT /10 19

22 SPORTS PARTICIPANTS YEAR ENDED 30/06/10 YEAR ENDED 30/06/09 YEAR ENDED 30/06/10 YEAR ENDED 30/06/09 ADULTS NON ADULTS TOTAL ADULTS NON ADULTS TOTAL Sport Mini Harness Racing Mini Motor Cycling Motor Cycling Netball Petanque Polo Pony Riding Rockclimbing Rowing Rugby League ,945 63,213 80,158 16,831 65,179 82,010 Rugby Union Sailing Self Defence Shooting Softball Spearfishing Sports Officials & Umpires Squash Surf Life Saving Surfing Swimming Table Tennis Tae Kwon Do Tai Chi Tenpin Bowling Tennis Touch Football Track & Field Trail Riding Trampolining Triathlon Volleyball Walk Ball Walking Water Polo Water Skiing Wrestling Yachting Yoga TOTALS , , ,172 47,878 99, , NSW SPORTING INJURIES COMMITTEE

23 Sport OFFICIALS TOTAL COVER YEAR ENDED 30/06/10 YEAR ENDED 30/06/09 YEAR ENDED ADULTS NON ADULTS TOTAL ADULTS NON ADULTS TOTAL 30/06/10 YEAR ENDED 30/06/09 Mini Harness Racing Mini Motor Cycling Motor Cycling Netball Petanque Polo Pony Riding Rockclimbing Rowing Rugby League 10, , ,148 92,234 92,158 Rugby Union Sailing Self Defence Shooting Softball Spearfishing Sports Officials & Umpires Squash Surf Life Saving Surfing Swimming Table Tennis Tae Kwon Do Tai Chi Tenpin Bowling Tennis Touch Football Track & Field Trail Riding Trampolining Triathlon Volleyball Walk Ball Walking Water Polo Water Skiing Wrestling Yachting Yoga TOTALS 17, ,775 15, , , ,443 ANNUAL REPORT /10 21

24 our insurance business Injury caseload Participation in sport carries a risk of injury. Fortunately the Sporting Injuries Insurance Scheme (covers sporting organisations) and the Supplementary Sporting Injuries Benefits Scheme (covers all school children) pays benefits for serious injuries that result in permanent impairment or death during authorised sporting activities. All serious injuries are notified to the Committee by sporting organisations or schools. The extent of the injury is monitored throughout rehabilitation. The time taken to finalise a claim depends upon the type and severity of the permanent injury as all treatment must be completed and the injury stabilised prior to a claim being finalised and assessed by an independent medical panel. Medical panels are typically held two to three times a year depending on when claims are ready to be assessed. All claims are processed in accordance with the Sporting Injuries Insurance Act Under the Sporting Injuries Insurance Scheme a total of seven claims were finalised and paid during the year with another two claim files closed as the injuries were deemed not compensable under the Act. There was an outstanding case load of seven claims at year end which is slightly below the number of the previous year. Under the Supplementary Sporting Injuries Benefits Scheme, three claims were finalised and paid during the year with two claim files closed as the injuries were sufficiently healed not to be compensable. This resulted in one case remaining outstanding at year end, again a result below last year s end result. The decrease in outstanding case numbers across both schemes can be attributed to two reasons. The Committee was able to finalise a large number of claims and pay benefits to seriously injured participants. More importantly, sporting organisations and schools are being proactive and employing strategies to prevent serious injury and death thus reducing the number of new cases notified to the Committee during the financial year. As at 30 June, the Committee was considering under both Schemes a total of eight outstanding claims representing death, arm injuries, leg injuries and quadriplegia. Reconciliation of the Caseload for the year ended 30 June Sporting Injuries Insurance Scheme Outstanding Scheme caseload as at 1 July 8 Number of sports involved in the outstanding Scheme caseload New Scheme cases notified during the year 8 Number of sports involved in these cases 4 Scheme cases closed during the year (including cases paid) Outstanding Scheme caseload as at 30 June 7 Number of sports involved in the outstanding Scheme caseload Supplementary Sporting Injuries Benefits Scheme Outstanding Supplementary Scheme caseload as at 1 July Number of sports involved in outstanding Supplementary Scheme caseload New Supplementary Scheme cases notified during the year Number of sports involved in these cases 3 Supplementary Scheme cases closed during the year (including cases paid) Outstanding Supplementary Scheme caseload as at 30 June Number of sports involved in the outstanding Supplementary Scheme caseload 1 22 NSW SPORTING INJURIES COMMITTEE

25 Valuation of Outstanding Claims Liabilities As at 30 June the estimated liability of the outstanding caseload under consideration by the Committee stood at $1,498,000 ( $1,778,000) for the Sporting Injuries Insurance Scheme and $447,000 ( $471,000) for the Supplementary Sporting Injuries Benefits Scheme. The total valuation of Outstanding Claims Liabilities of $1,944,000 is below prior years valuations due to the relatively large number of cases closed through payment of benefits or otherwise during the year. Year Outstanding Claims Liability* ,764, ,725, ,526, ,577, ,247, ,508,000 # ,412,000 # ,364,000 # 2,249,000 # 1,944,000 # * The Outstanding Claims Liability is measured as the central estimate of the present value of expected future payments for claims incurred but not reported (IBNR), claims incurred but not enough reported (IBNER) and a claims administrative expense loading. # Since 2006, the Outstanding Claims Liability of the Sporting Injuries Insurance Scheme includes an additional risk margin of 30 per cent to allow for the inherent uncertainty in the central estimate as required under the AEIFRS AASB 1023: General Insurance Contracts. Claims and Benefits Ten benefits totalling $531,877 were paid by the NSW Sporting Injuries Committee across the two insurance schemes with all but three being incurred and notified during prior years. This illustrates the due process required under the Sporting Injuries Insurance Act 1978 that before benefits are paid, injuries must be stable and all treatment completed before determining whether the injury is permanent and thus compensable. Benefits paid during the year were for a range of serious permanent injuries. Out of the ten claims paid by the Committee, three related to arm injuries, three for death, two for loss of sight, two for multiple injuries and one for permanent loss of mental capacity. Since the inception of the Sporting Injuries Insurance Scheme in 1979, a total of $14,408,743 has been paid in benefits at an average of $31,392 per claimant. This year a total of $439,826 was paid to seven claimants at an average of $62,832. The amount of benefits paid is at the highest level since 2004/2005. There were three claims paid out under the Supplementary Sporting Injuries Benefits Scheme during / totalling $92,052 at an average of $30,684. Total benefits paid since the introduction of the Supplementary Sporting Injuries Benefits Scheme in 1984 is $1,438,203 representing an average of $26,633 per claimant. The Committee was pleased to be able to finalise these claims and pay the legislated compensation to the seriously injured participants and their families. The Committee will continue educating and promoting to the New South Wales sporting community the advantages of its fault free cover provided under the two insurance schemes as well as encouraging sporting organisations and schools to continue to develop and implement safe sport practices through its Research and Injury Prevention Scheme and NSW Sports Safety Awards. Appeals to the District Court Section 29 of the Sporting Injuries Insurance Act 1978 provides that an aggrieved applicant for a benefit may, under certain circumstances, apply to the District Court of NSW for a determination in relation to a decision made by the Committee. No Section 29 applications were received by the Committee during the / financial year. No applications have been received since 2006/2007. ANNUAL REPORT /10 23

26 SPORTING INJURIES INSURANCE SCHEME Benefits paid from the Sporting Injuries insurance scheme during / are detailed below ACCIDENT YEAR INJURY, CONDITION OR DAMAGE SUSTAINED EXTENT OF INJURY BENEFIT PAID $ SPORT** Boxing Arm (Left) 50% permanent loss of the use of the greater part of the left arm 21,632 Fishing 2008 Death 76,380 Rugby League 2008 Arm (Left) 60% permanent loss of the use of the greater part of the left arm Rugby League 2004 Arms 33% permanent loss of the use of the greater part of the left arm, 33% permanent loss of the use of the greater part of the right arm Rugby League 2004 Incomplete Quadriplegia 65% permanent loss of the use of the greater part of the left arm, 40% permanent loss of the use of the greater part of the left leg, 25% permanent loss of the use of sexual organs or part thereof Spearfishing 2007 Multiple 100% permanent loss of the use of the greater part of the left arm, 70% permanent loss of the use of the greater part of the left leg, 35% permanent loss of the use of sexual organs or part thereof, 49% permanent loss of mental capacity 25,959 28,555 50, ,965 Water Polo Death 73,530* Total 439,826 Notes * In respect of a person over 18 years of age survived by dependents, the full death benefit of $70,680 is payable plus an additional $2850 for each dependent child. ** Rugby league is the largest sport insured by the Sporting Injuries Insurance Scheme since the Scheme commenced. As rugby league represented 52 per cent of total participants as at 30 June it is to be expected that the majority of benefits paid during the year as well as since the Scheme s inception would relate to that sport. SUPPLEMENTARY SPORTING INJURIES BENEFITS SCHEME Benefits paid from the Supplementary Sporting Injuries Benefits Scheme during / are detailed below ACCIDENT YEAR INJURY, CONDITION OR DAMAGE SUSTAINED EXTENT OF INJURY BENEFIT PAID $ SPORT** Rugby League 2007 Sight and Mental Capacity 72% permanent loss of the use of the left eye, 28% permanent loss of mental capacity 64,462 Snow Skiing Death 4650* Touch Football 2006 Sight 100% permanent loss of the use of one eye 23,030 Total 92,052 * In respect of the death of a person under 18 years of age with no dependents, a maximum amount of $4650 is payable towards funeral expenses. 24 NSW SPORTING INJURIES COMMITTEE

27 SPORTING INJURIES INSURANCE SCHEME Total benefits paid by sport since inception of the Scheme in 1978 / 2008/ 1979 to NO. BENEFIT PAID $ NO. BENEFIT PAID $ NO. BENEFIT PAID $ SPORT Aikido Ki 1 18,975 Australian Football 3 40, ,151 Baseball 1 11,637 Boxing 1 21, ,633 Cricket^^ ,232 Canoeing 3 53,700 Cycling 2 47,162 Diving Indoor Cricket 1 17,170 Fishing 1 76, ,756 Gridiron Hang Gliding 3 284,150 Horserace Riding 3 93,749 Motor-Car Racing 1 18,050 Motor-cycling ,565 Netball 3 41,475 Polo 5 217,585 Pony Riding 6 52,138 Rugby Union^^^ 40 1,836,620 Rugby League 3 105, , ,881,631^ Soccer 1 76, ,688 Softball Spearfishing 1 162, ,964 Tae Kwon Do 1 57,377 Touch Football 6 236,830 Water Polo 1 73, ,530 Totals 7 439, , ,408,743 ^ Rugby league is the largest sport insured by the Sporting Injuries Insurance Scheme since the Scheme commenced. As rugby league represented 52 per cent of total participants as at 30 June it is to be expected that the majority of benefits paid during the year as well as since the Scheme s inception would relate to that sport. ^^ In August 2003, cricket obtained an insurance exemption under Section 5(a) of the Act and has not been covered under the Scheme since then. ^^^ In March 2004, Rugby Union was granted an insurance exemption under Section 5(a) of the Act and has not been covered under the Scheme since then. ANNUAL REPORT /10 25

28 SUPPLEMENTARY SPORTING INJURIES BENEFITS SCHEME Total benefits paid by sport since the inception of the Supplementary Scheme in 1984 / 2008/ 1979 to NO. BENEFIT PAID $ NO. BENEFIT PAID $ NO. BENEFIT PAID $ SPORT Athletics 5 67,174 Australian Football 2 10,790 Basketball 3 33,452 Cricket 2 21,437 Cross Country 2 90, ,150 Gymkhana 1 171,000 Gymnastics 1 56, ,228 Hockey Judo 1 24,375 Netball 2 27,128 Rock Climbing 1 12,127 Rugby Union 1 28, ,520 Rugby League 1 64, ,343 Soccer 2 158,550 Squash 1 11,025 Snowboarding Snow Skiing Swimming Touch Football 1 23, ,855 Trampoline 1 13,860 Walking for Pleasure (Dept of Sport & Rec) 1 15,198 Waterpolo Yachting 1 17,325 Totals 3 92, , ,438, NSW SPORTING INJURIES COMMITTEE

29 SPORTING INJURIES INSURANCE SCHEME AND SUPPLEMENTARY SPORTING INJURIES BENEFIT SCHEME BENEFITS PAID UNDER THE SPORTING INJURIES INSURANCE ACT 1978 TABLE A TABLE B $ $ PART 1 INJURIES RELATED TO ARMS Permanent loss of not less than 30% of the use of: (a) either arm or the greater part thereof 43,265 Permanent loss of not less than 50% of the use of: (b) lower part of either arm,either hand or 4 fingers and thumb of either hand 37,050 (c) thumb 16,075 (d) index finger 10,715 (e) middle, ring or little finger 5645 PART 2 INJURIES RELATED TO LEGS Permanent loss of not less than 30% of the use of: (a) either leg or the greater part thereof 39,500 Permanent loss of not less than 50% of the use of: (b) lower part of either leg 33,970 (c) foot 32,945 (d) great toe 10,715 PART 3 INJURIES RELATED TO SIGHT PART 1 INJURIES RELATED TO COGNITION There is no minimum percentage of permanent loss required for these benefits. Permanent loss of: (a) mental capacity 171,000 (b sense of smell 9290 (c) sense of taste 9290 PART 2 PHYSICAL INJURIES There is no minimum percentage of permanent loss required for these benefits. Permanent loss of: (a) all sexual organs or part thereof 27,530 (b) sightless eye 12, Permanent and total loss of sight of both eyes (or of one eye if it was the only sighted eye) 55, Permanent loss of not less than 50% of the use of: (a) one eye, if it was the only sighted eye 39,500 (b) one eye, if it was not the only sighted eye 23,030 PART 4 MISCELLANEOUS INJURIES 1. Permanent loss of not less than 10% of: (a) hearing of both ears 33, Permanent loss of not less than 50% of: (b) power of speech 33, Permanent loss of sighted eye 12, Permanent and total loss of the use of: (a) both kidneys (or one kidney, if it was the only functioning kidney) 58,710 (b) one kidney, if it was not the only functioning kidney 7070 (c) Spleen 7070 ANNUAL REPORT /10 27

30 FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Statement by Members of the Committee Pursuant to Section 41C of the Public Finance and Audit Act 1983 and in accordance with a resolution of the Members of the Sporting Injuries Committee, we declare on behalf of the Committee that in our opinion: 1. The accompanying financial report exhibits a true and fair view of the financial position of the Sporting Injuries Committee as at 30 June and transactions for the year then ended. 2. The report has been prepared in accordance with the provisions of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation and the Treasurer s Directions. Further, we are not aware of any circumstances which would render any particulars included in the financial report to be misleading or inaccurate. Signed at Sydney this 6th day of October,. (signed) Chair Member 28 NSW SPORTING INJURIES COMMITTEE

31 Independent Auditor s Report ANNUAL REPORT /10 29

32 30 NSW SPORTING INJURIES COMMITTEE

33 Statement of Comprehensive Income FOR THE YEAR ENDED 30 JUNE Beginning of audited Financial Statements. Notes $'000 $'000 Premiums 2(d)(i) & Contributions 2(d)(ii) Net claims incurred 8 (227) (424) Premium liability deficiency 12(a) 33 0 Other underwriting expenses 2(e) & 6 (173) (188) (367) (612) Underwriting Result Investment returns (109) Injury prevention levies 2(d)(iii) Other revenue General and administrative expenses 6 (466) (627) (233) (650) Surplus/(Deficit) for the year 306 (443) Other comprehensive income Other comprehensive income for the year Total comprehensive income for the year (443) The accompanying notes form part of these financial statements. ANNUAL REPORT /10 31

34 Balance Sheet as at 30 JUNE Notes $'000 $'000 Current Assets Cash and cash equivalents ,368 Trade and other receivables Total Current Assets 1,747 2,179 Non-Current Assets Financial assets 10 1,773 1,372 Total non-current assets 1,773 1,372 Total Assets 3,520 3,551 Current Liabilities Trade and other payables Outstanding claims Provisions Total Current Liabilities 1,566 1,719 Non-Current Liabilities Outstanding claims 13 1,188 1,380 Provisions Total non-current liabilities 1,222 1,406 Total Liabilities 2,788 3,125 Net Assets Equity Accumulated funds The accompanying notes form part of these financial statements. Statement of Changes in Equity FOR THE YEAR ENDED 30 JUNE Accumulated funds Notes $'000 $'000 Balance at 1 July Surplus/(Deficit) for the year 306 (443) Other comprehensive income 0 0 Total other comprehensive income 0 0 Balance at 30 June The accompanying notes form part of these financial statements. 32 NSW SPORTING INJURIES COMMITTEE

35 Cashflow Statement FOR THE YEAR ENDED 30 JUNE Cash Flows to Operating Activities Notes $'000 Inflows (Outflows) $'000 Inflows (Outflows) Premiums Contributions Investment returns Injury prevention levies Other receipts 0 29 Claims paid (533) (538) Administration and other costs (686) (993) GST paid to ATO (5) 0 Net Cash (used) by operating activities 15 (256) (157) Cash Flows from Investing Activities Redemption of investments Purchase of investments (250) 0 Net cash provided by investing activities (250) 425 Net increase in cash and cash equivalents held (506) 268 Cash and cash equivalents at the beginning of the financial year 1,368 1,100 Cash and cash equivalents at the end of the financial year ,368 The accompanying notes form part of these financial statements. ANNUAL REPORT /10 33

36 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 1 Constitution and purpose of the Committee The Sporting Injuries Committee is constituted under Section 7 of the Sporting Injuries Insurance Act 1978 to provide affordable serious sporting injuries insurance and promote safe sport practices within the sporting community of New South Wales. The Sporting Injuries Fund has been established by the Committee, as required by Section 11 of the Act, to facilitate administration of the Sporting Injuries Insurance Scheme. The Scheme covers registered participants of sporting organisations for injury while engaged in specific activities or events. The Scheme provides capital lump sum benefits for injuries that lead to a prescribed percentage of permanent loss of use or fatality. The Committee has also established the Supplementary Sporting Injuries Fund, as required by Section 11A of the Act to facilitate administration of the Supplementary Sporting Injuries Benefits Scheme. The Supplementary Scheme is a non-contributory scheme funded by the NSW Government. The Supplementary Scheme provides capital lump sum benefits for injuries that lead to a prescribed percentage of permanent loss of use or fatality to (a) children who are seriously injured while participating in organised school sport or athletic activities and (b) persons likewise injured while participating in certain programs of activity conducted or sanctioned by NSW Sport and Recreation. The Committee is a not for profit entity as profit is not its principal objective and it has no cash generating units. This financial report for the year ended 30 June has been authorised for issue by the Committee on the 6th of October. Note 2 Summary of significant accounting policies (a) Basis of financial statements This financial report is a general purpose financial report and has been prepared in accordance with: I. applicable Australian Accounting Standards (which include Australian Accounting Interpretations) and II. the requirements of the Public Finance and Audit Act 1983 and Regulation. This financial report has been prepared on the basis of historical cost except for the reporting of property, plant and equipment and investments which are valued at fair value. Judgements, key assumptions and estimations that management have made are disclosed in the relevant notes to the financial statements. (b) Insurance The Committee s general business insurance activities such as workers compensation cover is sourced through the NSW Treasury Managed Fund Scheme of self insurance for Government agencies. The expense (premium) is determined by the Fund Manager based on past claim experience. (c) Accounting for the Goods and Services Tax (GST) Income, expenses and assets are recognised net of the amount of GST, except that: I. the amount of GST incurred by the Committee as a purchaser that is not recoverable from the Australian Taxation Office is recognised as part of the cost of acquisition of an asset or as part of an item of expense and; II. receivables and payables are stated with the amount of GST included. Cash flows are included in the cash flow statement on a gross basis. However, the GST components of cash flows arising from investing and financing activities which is recoverable from, or payable to, the Australian Taxation Office are classified as operating cash flows. (d) Income Recognition Income is measured at the fair value of the consideration or contribution received or receivable. Additional comments regarding the accounting policies for the recognition of income are discussed below. (i) Premiums Premiums of the Sporting Injuries Insurance Scheme comprise amounts charged to sporting organisations declared to be members of the Scheme. Premiums are assessed on an estimate of the number of participants expected to register for the sporting period and on completion of that period adjustments are made in accordance with actual registrations. Premium income is treated as earned from the date of attachment of risk. The earned portion of premiums received or receivable relating to the financial year is recognised as income. (ii) Contributions Costs of the Supplementary Sporting Injuries Benefits Scheme are met by NSW Treasury pursuant to notices served under Section 11B(2) of the Sporting Injuries Insurance Act These recoupments from NSW Treasury are classified as Contributions. Pending recoupment from NSW Treasury, the Act provides for the use of funds from the Sporting Injuries Benefits Scheme which is repayable with interest. Amounts shown in this financial report are in Australian dollars and have been rounded to the nearest thousand dollars. 34 NSW SPORTING INJURIES COMMITTEE

37 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 2 Summary of significant accounting policies (continued) (iii) Injury prevention levies During 2002/03 the Parliament approved a major amendment to the Sporting Injuries Insurance Act 1978 which enables declared sporting organisations under the Act to apply for, and be granted, an insurance exemption for a private scheme rather than participate in the Sporting Injuries Insurance Scheme. An annual levy is paid for the insurance exemption and the revenue from all such levies is used to fund the Committee s sports injury prevention and reduction programs. (e) Other Underwriting Expenses Other underwriting expenses have been identified on the basis of a pro-rata assessment of the extent to which the total resources of the Committee are applied to its underwriting function. The rate used to apportion these costs is 27 per cent in /10 (23 per cent in 2008/09). (f) Assets (i) Trade and other receivables Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. These financial assets 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, less an allowance for any impairment of receivables. Any changes are recognised in the surplus/deficit for the year when impaired, derecognised or through the amortisation process. Shortterm receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial. (ii) Investments Investments are initially recognised at fair value plus, in the case of investments not at fair value through profit or loss, transaction costs. The Committee determines the classification of its financial assets after initial recognition and, when allowed and appropriate, re-evaluates this at each financial year end. At the end of the current financial reporting period all of the Committee s assets have been designated as fair value through profit or loss. Fair value through profit or loss The Committee subsequently measures investments classified as held for trading or designated upon initial recognition at fair value through profit or loss at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term. Derivatives are also classified as held for trading. Gains or losses on these assets are recognised in the surplus/deficit for the year. The NSW Treasury Hour-Glass Investment Facilities are designated at fair value through profit or loss using the second leg of the fair value option i.e. these financial assets are managed and their performance is evaluated on a fair value basis, in accordance with a documented risk management strategy, and information about these assets is provided internally on that basis to the agency 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. (iii) Cash and cash equivalents Short-term deposits are stated at net fair value. Interest is recognised in the Statement of Comprehensive Income when earned. (iv) 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 the Committee will not be able to collect all amounts due. Any reversals of impairment losses are reversed through the surplus/deficit for the year, where there is objective evidence. (v) De-recognition of financial assets and financial liabilities A financial asset is de-recognised when the contractual rights to the cash flows from the financial assets expire or if the Committee transfers the financial asset: where substantially all the risks and rewards have been transferred or where the Committee has not transferred substantially all the risks and rewards, if the Committee has not retained control. Where the Committee has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of the Committee s continuing involvement in the asset. A financial liability is derecognised when the obligation specified in the contract is discharged or cancelled or expires. (g) Liabilities (i) Trade and other payables These amounts represent liabilities for goods and services provided to the Committee 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) Employee benefits and other provisions Personnel services, annual leave, sick leave and on-costs The Committee s staff is supplied by the Compensation Authorities Staff Division (CASD). Liabilities for personnel services (including non-monetary benefits), annual leave and paid sick leave that are due to be settled within 12 months after the period in which the employees render the service are recognised and measured in respect of the employees service up to the reporting date at undiscounted amounts based on the amounts expected to be paid when the liabilities are settled. ANNUAL REPORT /10 35

38 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 2 Summary of significant accounting policies (continued) Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leave taken in the future will be greater than the benefits accrued in the future. The outstanding amounts of payroll tax, workers compensation insurance premiums and fringe benefits tax, which are consequential to employment, are recognised as liabilities and expenses where the employee benefits to which they relate have been recognised. Long service leave Long service leave has been measured as the present value of accrued liabilities at balance date. The present value of the liabilities has been determined by estimating for each future year the amounts of entitlements expected to be paid in service and on termination of employment for each employee based on their current salary, long service leave balance, assumed rates of taking long service leave in service, rates of death, disablement, retirement and resignation and rates of salary escalation. The resulting cash flows have then been converted to a present value by discounting from the expected date of payment to the valuation date at the long term government bond yield rate. The assumed rate of salary escalations applied for this valuation was 3.5 per cent for all future years and the discount rate applied was 5.25 per cent. Net claims incurred and Outstanding claims Net claims incurred include claims paid and the movement in the provision for outstanding claims liabilities. The provision for outstanding claims liabilities includes claims incurred but not yet paid, incurred but not yet reported and allowances for the costs of claims administration. An assessment of outstanding claims by independent actuarial consultants is undertaken to determine the net central estimate of this liability. The Sporting Injuries Insurance Scheme in accordance with AASB 1023: General Insurance Contracts has a risk margin applied to the net central estimate to bring the liability for this Scheme up to an acceptable level of probability of adequacy of 75 per cent. The 75 per cent level of probability of adequacy is in compliance with the Australian Prudential Regulation Authority s prudential standard GPS 310 for commercial insurers. The Supplementary Sporting Injuries Benefits Scheme in accordance with AASB 137: Provisions, Contingent Liabilities and Contingent Assets is valued at the net central estimate only as this is considered to be the best estimate of the expenditure required to settle the present obligation at reporting date. Research grants The Sporting Injuries Committee operates a Research and Injury Prevention Scheme through which it provides grants for research projects into the prevention of serious sporting injuries. The Committee calls for grant applications by 1 March each year and then conducts a detailed review and assessment of these applications against pre-defined criteria. These grants are treated as a provision and the full amount of the grant is expensed at the time the Committee approves the funding for the research project as the applicants earn the right to receive the funds at this point in time although installments are paid upon the completion of progress reports and the delivery of the final report. (h) New Australian Accounting Standards issued In this reporting period, the following recent Australian Accounting Standard was not used in preparing this financial report as it was not yet effective. AASB Amendments AASB 9 Affected Standard Financial Instruments Operative Date 1 January 2013 This new standard will have no direct impact on the Committee s financial results. Other Accounting Standards exist that have not yet been applied and are not yet effective. They have been excluded from the above table as they are not considered relevant to the Committee. (i) Critical accounting judgements and estimates The Sporting Injuries Committee makes estimates and assumptions in respect of certain key assets and liabilities. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The key areas in which critical estimates are applied are described below. It has been determined that no critical accounting judgements have been made in the year. The ultimate liability arising from claims made under insurance contracts Provision is made at year end for the estimated cost of claims incurred but not settled at the balance sheet date, including the cost of claims incurred but not yet reported to the Committee. The estimated cost of claims includes direct expenses to be incurred in settling claims. The Committee takes all reasonable steps to ensure that it has appropriate information regarding its claims exposures. However, given the uncertainty in establishing claims provisions, it is likely that the final outcome will prove to be different from the original liability established. 36 NSW SPORTING INJURIES COMMITTEE

39 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 2 Summary of significant accounting policies (continued) The estimation of claims incurred but not reported ( IBNR ) is generally subject to a greater degree of uncertainty than the estimation of the cost of settling claims already notified to the Committee, where more information about the claim event is generally available. IBNR claims may often not be apparent to the insured until many years after the incident giving rise to the claim. In calculating the estimated cost of unpaid claims the Committee uses a variety of estimation techniques, generally based upon statistical analyses of historical experience, which assumes that the development pattern of the current claims will be consistent with past experience. Allowance is made, however, for changes or uncertainties which may create distortions in the underlying statistics or which might cause the cost of unsettled claims to increase or reduce when compared with the cost of previously settled claims including: changes in Committee processes which might accelerate or slow down the development and/or recording of paid or incurred claims, compared with the statistics from previous periods changes in the legal environment the effects of inflation changes in the mix of business the impact of large losses medical and technological developments changes in benefit schedules A component of these estimation techniques is usually the estimation of the cost of notified but not paid claims. In estimating the cost of these the Committee has regard to the claim circumstance as reported, any information available from loss adjusters and information on the cost of settling claims with similar characteristics in previous periods. Details of specific assumptions used in deriving the outstanding claims liability at year-end are detailed in Note 2(j). (j) Actuarial assumptions and methods The Sporting Injuries Committee writes long tailed insurance business. The process for determining the value of outstanding claims liabilities is described below. Actuarial assumptions The following assumptions have been made in determining the outstanding claims liabilities as at 30 June and 30 June. Sporting injuries insurance scheme supplementary sporting injuries benefits scheme sporting injuries insurance scheme supplementary sporting injuries benefits scheme Total of all the payment per dollar premium factors (i.e. uninflated and undiscounted) Cumulative gross incurred development multiple at the first delay 64% 67% Claims handling expense rate $18,000 per claim accepted and paid $18,000 per claim accepted and paid $19,000 per claim accepted and paid $19,000 per claim accepted and paid Discount rate Yields on Commonwealth Government bonds as at 30 June Yields on Commonwealth Government bonds as at 30 June Yields on Commonwealth Government bonds as at 30 June Yields on Commonwealth Government bonds as at 30 June Wage inflation 0% 0% 0% 0% Superimposed inflation 0% 0% 0% 0% ANNUAL REPORT /10 37

40 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 2 Summary of significant accounting policies (continued) Process used to determine assumptions A description of the processes used to determine these assumptions is provided below: Payment per dollar premium factors The payment per dollar premium factors (PPDP) method is used to estimate the outstanding claims liability for the more recent accident years for the Sporting Injuries Insurance Scheme. The method considers the average amount paid per dollar of premium at successive intervals subsequent to injury. Summarised payments are divided by the corresponding premium for that period to get the average PPDP by accident and development year. Trends in the level of PPDP s are examined and a payment pattern is fitted which allows for the pattern of payments from one development year to the next. The total of all the PPDP factors across all development years is equivalent to an uninflated and undiscounted loss ratio for a new accident year. Case estimate development and payout ratios The projected case estimate method (PCE) is used to estimate the outstanding claims liability for the older accident years for the Scheme. It considers the development of case estimates into payments and case estimates from one development period to the next and these development factors are used to project future payments and case estimates using the current case estimates. Historic ratios of the gross reported incurred costs at each development period to the case estimate at the previous development period are used to select case estimate development factors. Historic ratios of payments at each development period to the case estimate at the previous development period are used to select payout ratios. Gross incurred cost development factors This method has been adopted for the Supplementary Sporting Injuries Benefits Scheme since It considers the progression of gross reported incurred cost from one development year to the next. This forms the historical chain ladder ratios to be analysed to determine the gross reported incurred cost development pattern. The adopted pattern is then expressed as scaling multiples to estimate the ultimate incurred cost for each accident year. The difference between the ultimate incurred cost and the payments made to date for each accident year represents the estimate of the outstanding claims liability. Initial estimates may be adjusted if required for reasonableness. Expense rate Claims handling expense assumptions have been expressed as a cost per claim paid. This is consistent with the method adopted for the previous valuation. The projected number of claims yet to be paid was then used to estimate the outstanding claims handling expense liability. Discount rate Discount rates are derived from market yields on Commonwealth Government securities. Inflation No allowance has been made for future claims inflation. Past claims are fixed by the benefit schedules as specified by the Sporting Injuries Insurance Act 1978 and the Committee has assumed that there are no future legislation changes that will affect the level of benefits paid in respect of past claims. The introduction of the Sporting Injuries Regulation has had no impact on the level of benefits as it only changed the impairment thresholds for a person to qualify for benefits. Superimposed inflation Superimposed inflation occurs due to non-economic effects such as court settlements increasing at a faster rate than wages or CPI inflation. As the benefits are fixed by legislation, the Committee has not made an allowance for superimposed inflation. Hence to the extent that they are present in the historic experience, the valuation methodology makes an implicit allowance for superimposed inflation in claims cost. Sensitivity analysis The Sporting Injuries Committee conducts a sensitivity analysis to quantify the exposure to risk of changes in the key underlying variables. The valuations included in the reported results are calculated using certain assumptions about these variables as disclosed above. The movement in any key variable will impact the performance and equity of the Committee. The tables below describe how a change in each assumption will affect the insurance liabilities and show an analysis of the sensitivity of the profit/(loss) and equity to changes in these assumptions. There are no recoveries in the Sporting Injuries Insurance Scheme. However, there are recoveries in the Supplementary Sporting Injuries Benefits Scheme where school children are successful in a damages claim against the NSW Government. The amount recovered is the amount of the damages received up to the maximum amount of the benefit received from the Committee. 38 NSW SPORTING INJURIES COMMITTEE

41 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 2 Summary of significant accounting policies (continued) Variable Impact of movement in variable Payment per dollar premium factors Case estimate development and payout ratios Gross incurred development factors Claims handling expense rate Discount rate Inflation and superimposed inflation rates The outstanding claims liability of the Sporting Injuries Insurance Scheme is driven by these factors. An increase or decrease to the PPDP factors will lead to a corresponding impact on the outstanding claims liability. The outstanding claims liability of the Sporting injuries Insurance Scheme from older accident years is reliant on these factors. The gap between the case estimate development and payout ratios is the key driver of the liability. Generally, an increase or decrease in the gap will lead to a corresponding impact on the outstanding claims liability. The outstanding claims liability of the Supplementary Sporting Injuries Benefits Scheme is driven by these factors. An increase or decrease to the Gross Incurred Development factors will lead to a corresponding impact on the outstanding claims liability. An estimate for the internal costs of handling claims is included in the outstanding claims liability. An increase or decrease in assumed claims handling costs per claim paid will have a corresponding impact on the outstanding claims liability. The outstanding claims liability is calculated by reference to expected future payments. These payments are discounted to adjust for the time value of money. An increase assumed discount rate will decrease the outstanding claims liability and vice versa. As benefits are fixed for both Schemes there is no expectation of any future economic or superimposed inflation for the purposes of valuing outstanding claims. The introduction of the Sporting Injuries Regulation has not had an impact on the outstanding claims valuation as it only changed the impairment thresholds for a person to qualify for benefits. ANNUAL REPORT /10 39

42 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 2 Summary of significant accounting policies (continued) Impact of changes in key variables Recognised amounts per the financial statements net of recoveries Sporting Injuries Insurance Scheme 1,498 Supplementary Sporting Injuries Benefits Scheme 447 1,945 variable Movement in variable Adjusted amounts Sporting Injuries Insurance Scheme Discount rate +1% 1,475-1% 1,522 Expense rate +$1,000 1,514 -$1,000 1,482 PPDP factors +10% 1,585-10% 1,411 Actual premiums for the year being less than budgeted (decreased exposure) Actual premiums for the year being more than budgeted (increasing exposure) -10% 1,534 10% 1,462 The average term to settlement increases 6 month increase 1,472 Greater numbers of IBNR (chain ladder factors increase by 0.5%), along with an increase in PPDP factors (+10%) Greater numbers if IBNR (chain ladder factors increase by 1.0%), along with an increase in PPDP factors (+25%) 1,609 1,764 Supplementary SportinG injuries benefits SCHEME Discount rate +1% 439-1% 456 Expense rate +$1, $1, Gross incurred development factors +10% 1,144-10% 90 Assumed higher estimates of the incurred costs for the 2002, 2003, and years Assumed lower estimates of the incurred costs for the 2002, 2003, and years 10% % 430 The average term to settlement increases 6 month increase 437 Greater numbers of IBNR (chain ladder factors increase by 2.0%), along with increased levels of claims development (+3%) Increased incurred costs for the 2002, 2003, 2008 and years (+20%) and higher levels of claims development (+5%) NSW SPORTING INJURIES COMMITTEE

43 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 2 Summary of significant accounting policies (continued) (k) insurance contracts risk management policies and procedures The financial condition and operations of the Sporting Injuries Committee are affected by a number of key risks including insurance risk, interest rate risk, currency risk, credit risk, market risk, liquidity risk and compliance risk. Notes on the Committee s policies and procedures in respect of managing these risks are set out in this note. (i) Objectives in managing risks arising from insurance contracts and policies for mitigating those risks The Committee has an objective to control insurance risk thus reducing the volatility of operating profits. In addition to the inherent uncertainty of insurance risk, which can lead to significant variability in the loss experience, profits from insurance business are affected by market factors, particularly movements in asset values. Short-term variability is, to some extent, a feature of insurance business. (ii) Terms and conditions of insurance business The terms and conditions attaching to insurance contracts affect the level of insurance risk accepted by the Committee. The majority of insurance contracts written are entered into on a standard form basis. There are no special terms and conditions in any non standard contracts that have a material impact on the financial statements. (iii) Concentration of insurance risk The Sporting Injuries Committee has insurance risk exposure to the sport of rugby league as 52 per cent (: 55 per cent) of participants covered by the Sporting Injuries Insurance Scheme play rugby league through four different sporting organisations. The Committee will continue to mitigate this risk by increasing the diversity of the Scheme between different sports and sporting organisations. (iv) Development of claims There is a possibility that changes may occur in the estimate of the Committee s obligations at the end of a contract period. The tables in Note 8 show the Committee s estimates of total claims outstanding for each underwriting year at successive year ends. (v) Interest rate risk None of the financial assets or liabilities arising from insurance contracts entered into by the Committee are directly exposed to interest rate risk. Insurance contracts are entered into annually. At the time of entering into the contract all terms and conditions are negotiable. (vi) Credit risk Financial assets and liabilities arising from insurance contracts are stated in the balance sheet at the amount that best represents the maximum credit risk exposure at balance date. There are no significant concentrations of credit risk. (vii) Liquidity risk The Committee monitors its cash and investments to ensure that there are sufficient funds available to meet claims as they become payable. (viii) Compliance risk The Committee monitors its operations to ensure that they are conducted in accordance with their enabling legislation and other relevant applicable legislation. Note 3 Premiums Premium notices issued Premium income adjustment (14) 7 Note 4 Investment returns Interest on call and term deposits Movement in market values on TCorp investments Note 5 Other revenue NSW Sports Safety Awards Dinner ticket revenue Reimbursement of Research Grants (113) 182 (109) ANNUAL REPORT /10 41

44 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 6 Committee expenses Personnel services Personnel service oncosts Employers superannuation Agency staff 0 5 Committee member fees Consultants 3 36 Travel & vehicle expenses 2 4 Research grants Fees Audit fees external Printing Training 0 20 Medical panel and report costs Office accomodation Other Other underwriting expenses General and administrative expenses Payments to Committee members are made in accordance with Premier s Guidelines. Note 7 Specific items of Sporting Injuries Commitee expenditure The Committee s expenses in Note 6 include expenditure incurred on the following Sports Injury Prevention Measures: Research and Injury Prevention Scheme grants NSW Sports Safety Award costs Note 8 Net claims incurred Claims paid Movement in claims liabilities (305) (115) NSW SPORTING INJURIES COMMITTEE

45 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 8 Net claims incurred (continued) Current period claims relate to risks borne in the current reporting period. Prior period claims relate to an assessment of the risks borne in all previous reporting periods. current year prior year Total current year prior year Total Direct Business Gross claims incurred and related expenses undiscounted Discount and discount movement gross claims incurred 884 (688) (578) 229 (84) (78) Net claims incurred 800 (573) (305) 424 Note 9 Trade and other receivables Current Receivables Receivables Contribution Income Note 10 Financial assets NSW Treasury Corporation Hour Glass Growth Facility 1,773 1,372 1,773 1,372 Current 0 0 Non-current 1,773 1,372 1,773 1,372 Financial assets are classified as current and non-current depending upon the amount expected to be consumed or converted into cash within 12 months of balance date. All investments are held to fund outstanding claims liabilities. Market valuations were provided by the investment managers with whom investments were placed. ANNUAL REPORT /10 43

46 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 11 Financial instruments The Sporting Injuries Committee s principal financial instruments are outlined below. These financial instruments arise directly from the Committee s operations and are required to finance these operations. The Committee does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The Committee s main risks arising from financial instruments are outlined below, together with the Committee s objectives, policies and processes for measuring and managing risk. Further quantitative and qualitative disclosures are included throughout this financial report. The Committee has overall responsibility for the establishment and oversight of risk management and reviews and agrees policies for managing each of these risks. Risk management policies are established to identify and analyse the risks faced by the Committee, to set risk limits and controls and to monitor risk. Compliance with policies is reviewed by the Committee. (a) Financial Instrument categories (b) Credit Risk Credit risk arises where there is the possibility of the Committee s debtors defaulting on their contractual obligations, resulting in a financial loss to the Committee. The maximum exposure to credit risk at balance date is generally represented by the carrying amount of the financial assets as indicated in the Balance Sheet. Credit risk arises from the financial assets of the Committee, including cash and receivables. No collateral is held by the Committee. The Committee has not granted any financial guarantees. The Committee is not materially exposed to concentrations of credit risk to a single trade debtor or group of debtors. Based on past experience, debtors that are not past due $342,000 (: $34,000) and not less than 6 months past due Nil (: $237,000) and greater than 6 months overdue $1,000 (: Nil) are not considered impaired and together these represent 100 per cent of the total trade debtors. There are no debtors which are currently not past due or impaired whose terms have been renegotiated. Credit risk associated with the Committee s financial assets, other than receivables, is managed through the selection of counterparties and establishment of minimum credit rating standards. Financial Assets Cash and cash equivalents notes category 16 N/A Receivables (1) receivables at 9 Loans and amortised cost Investments Financial Liabilities 10 At fair value through profit or loss designated as such upon initial recognition Payables (2) measured at 12 Financial liabilities authorised cost 862 1, ,773 1, Cash Cash comprises cash on hand and bank balances. Interest is earned on daily bank balances in accordance with an agreement with the Committee s banker. The TCorp Hour-Glass Cash Facility is discussed in paragraph (f) below. Receivables trade debtors All trade debtors are recognised as amounts receivable at balance date. Collectability of trade debtors is reviewed on an ongoing basis. Procedures have been established 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 the Committee will not be able to collect the amount 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 30 day terms. (1) Excludes statutory receivables and prepayments (i.e. not within the scope of AASB7) (2) Excludes statutory payables and unearned revenue (i.e. not within the scope of AASB7) 44 NSW SPORTING INJURIES COMMITTEE

47 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 11 Financial instruments (continued) Details of the Committee s trade debtors follows: Total < 3 months overdue 3 months 6 months overdue > 6 months overdue 1 1 < 3 months overdue 3 months 6 months overdue > 6 months overdue Notes 1. Each column in the table reports gross receivables. 2. The ageing analysis excludes statutory reseivables as these are not within the scope of AASB7 and excludes receivables that are not past due and not impared. Therefore, the total will not reconcile to the receivables total recognised in the balance sheet. (c) Liquidity risk Liquidity risk is the risk that the Committee will be unable to meet its payment obligations when they fall due. The Committee continuously manages its liquidity risk through monitoring future cash flows to ensure adequate holding of high quality liquid assets. The Committee does not have any loans payable and no assets have been pledged as collateral. The Committee s exposure to liquidity risk is deemed insignificant based on prior periods data and 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 Treasurer s Direction 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. Treasurer s Direction allows the Minister to award interest for late payment. The Committee s payables are all non interest bearing with a maturity date of less than one year. (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. The Committee s exposures to market risk are primarily through other price risks associated with the movement in the unit price of the Hour-Glass Investment Facilities. The Committee 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 the Committee operates and the time frame for the assessment (i.e. until the end of the next annual reporting period). The sensitivity analysis is based on risk exposures in existence at the balance sheet date. The analysis is performed on the same basis as for. The analysis assumes that all other variables remain constant. The exposure to market risk on financial instruments at the balance date and previous year is as follows: financial assets market value market value Investments in Growth Facilities 1,773 1,372 Total Financial Assets exposed to Market risk 1,773 1,372 Cash 862 1,368 Receivables (1) total financial assets not exposed to Market risk 1,205 1,639 total financial assets 2,978 3,011 financial liabilities Trade Creditors (2) Total financial liabilities not exposed to market risk (1) Excludes statuatory receivables and prepayments (i.e. not within scope of AASB7). (2) Excludes statuatory payables and unearned revenue (i.e. not within scope of AASB7). ANNUAL REPORT /10 45

48 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 11 Financial instruments (continued) (e) Interest rate risk The exposure to interest rate risks and effective interest rates of financial assets and financial liabilities both recognised and unrecognised for the Committee at the balance date is as follows: financial instruments weighted average effective interest rate % floating interest rate non interest bearing total financial assets Cash at bank Cash in cash facilities Receivables N/A Investments N/A 0 1,773 1,773 total financial assets 862 2,116 2,978 financial liabilities Trade Creditors N/A Total financial liabilities interest rate risk exposure previous year financial instruments weighted average effective interest rate % floating interest rate non interest bearing total financial assets Cash at bank Cash in cash facilities 5.4 1, ,129 Receivables N/A Investments N/A 0 1,372 1,372 total financial assets 1,368 1,643 3,011 financial liabilities Trade Creditors N/A Total financial liabilities Exposure to interest rate risk is minimal as the Committee does not have any interest bearing liabilities The Committee s main exposure to interest rates in financial assets and liabilities is in the area of cash. Cash in cash facility trusts is discussed under (f) below. In relation to cash held at the bank this exposure is managed by the Committee monitoring its cash flow requirements and only holding sufficient cash at the bank to meet its short term needs. The potential impact of the Committee s exposure to a reasonably possible change in interest rates is set out below: Change in unit price impact on profit/loss Cash at bank +/-1% NSW SPORTING INJURIES COMMITTEE

49 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 11 Financial instruments (continued) (f) Other price risk Exposure to other price risk primarily arises through the investment in the NSW Treasury Corporation Hour-Glass Investment Facilities, which are held for strategic rather than trading purposes. The Committee holds units in the following Hour-Glass Investment Facilities: facility Cash facility Long term Growth Facility investment sectors Cash, money market instruments Cash, money market instruments, Australian and International bonds (international bonds only), listed property, Australian and International shares investment horizon Up to 1.5 years 659 1,129 7 years and over 1,773 1,372 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 each facility. Unit prices are calculated and published daily. NSW Treasury Corporation as trustee for each of the above facilities, 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. However, TCorp acts as a manager for part of the Cash Facility. A significant portion of the administration of the facilities is outsourced to an external custodian. Investment in the Hour-Glass Facilities limit the Committee s exposure to risk, as it allows diversification across a pool of funds, with different investment horizons and a mix of investments. NSW Treasury Corporation provides sensitivity analysis information for each of the facilities, using historically based volatility information. The 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 reasonable possible change is based on the percentage change in unit price multiplied by the redemption price as at 30 June each year for each facility (as advised by NSW Treasury Corporation). Hour-Glass Investment Cash facility Hour-Glass Investment Long term growth facility Change in unit price impact on profit/loss +/-1% /-15% (g) Fair value recognised in the balance sheet The Committee uses the following hierarchy for disclosing the fair value of financial instruments by valuation technique: Level 1 Derived from quoted prices in active markets for identical assets/liabilities Level 2 Derived from inputs other than quoted prices that are observable directly or indirectly Level 3 Derived from valuation techniques that include inputs for the asset/liability not based on observable market data (unobservable inputs) Financial assets at fair value TCorp Hour-Glass Invt. Facility Financial assets at fair value TCorp Hour-Glass Invt. Facility LEVEL1 LEVEL1 LEVEL2 LEVEL3 TOTAL 1,773 1,773 LEVEL2 LEVEL3 TOTAL 1,372 1,372 (the table above only includes financial assets as no financial liabilities were measured at fair value in the balance sheet) ANNUAL REPORT /10 47

50 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 12 Trade and other payables Creditors 6 0 Accruals Unearned premiums and injury prevention levies Premium liability deficiancy reserve Total trade and other payables (C) UNEARNED premiums & injury prevention levies Unearned premium income Unearned injury prevention levies Note 13 Outstanding claims (a) Premium liability deficiency reserve Unexpired risk liability as at 1 July Movements in the unexpired risk liability recognied in the Statement of Comprehensive Income Premium liability deficiency reserve as at 30 June (b) calculation of deficiency Unearned premium liability relating to cntracts issued under the Sporting Injuries Insurance Scheme (A) Central estimate of the present value of expected future cashflows airising from future claims on contracts issued under the Sporting Injuries Insurance Scheme (33) Risk Margin of 60% (B) Deficiency (B) (A) The process for determining the overall risk margin, including the way in which diversification of risks has been allowed for is discussed in Note 13. As with outstanding claims, the overall risk margin is intended to achieve a 75 per cent probability of adequacy. sporting injuries insurance scheme Central Estimate 969 1,149 Claims handling costs Risk margin Outstanding claims liability undiscounted 1,666 1,973 Discount to present value (168) (195) LIAbility for outstanding claims discounted supplementary sporting injuries benefits scheme 1,498 1,778 Central Estimate Claims handling costs Risk margin 0 0 Outstanding claims liability undiscounted Discount to present value (47) (51) Liability for Outstanding Claims discounted Total outstanding claims liability Current discounted Non-current discounted 1,188 1,380 1,945 2, NSW SPORTING INJURIES COMMITTEE

51 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 13 Outstanding claims (continued) Supplementary Sporting Injuries Benefits Scheme (Movements in the Supplementary Sporting Injuries Benefits Scheme) Carrying amount 1 July Additional provisions (25) (252) Amounts used (92) (175) Unused amounts reversed 0 0 Finance costs Carrying amount 30 June (a) The weighted average expected term to settlement from the reporting date of the outstanding claims is estimated to be 2.2 years for the Sporting Injuries Insurance Scheme and 2.0 years for the Supplementary Sporting Injuries Benefits Scheme (2.1 years for both schemes ). (b) The following average discount rates were used in measuring the liability for outstanding claims expected to be paid not later than one year from the reporting date: % % Discount Rate (c) The following average discount rates were used in measuring the liability for outstanding claims expected to be paid later than one year: % % Discount Rate (d) Risk margin Process for determining risk margin The overall risk margin was determined allowing for the relative uncertainty of the outstanding claims estimate. Uncertainty was analysed for each portfolio taking into account potential uncertainties relating to the actuarial models and assumptions, the quality of the underlying data used in the models, the general insurance environment, the underlying characteristics of business written and the impact of legislative reform. The estimate of uncertainty is greater for long tailed classes when compared to short tailed classes due to the longer time until settlement of the outstanding claims. The assumptions regarding uncertainty were applied to the central estimates of the liability for the Sporting Injuries Insurance Scheme only and are intended to result in a 75 per cent probability of adequacy. Risk margins applied % % Risk Margin (e) reconciliation of movement in discounted outstanding claims liability Brought forward 2,249 2,364 Recognition of discounted risk margin Effect of changes in experience and assumptions (65) 24 (372) (187) Increase in claims incurred Incurred claims recognised in the Statement of Comprehensive Income Claim payments during the year (532) (539) Carried forward 1,945 2,249 ANNUAL REPORT /10 49

52 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 13 Outstanding claims (continued) (f) Claims development table The following table shows the development of undiscounted outstanding claims to the ultimate expected claims for the most recent accident years. GROSS Accident year Total Estimate of ultimate claims cost At end of accident year ,046 One year later , ,173 Two years later ,176 Three years later ,501 Four years leter ,888 Five years later ,985 Six years later ,206 Seven years later Eight years later Current estimate of cumulative claims cost ,230 Cumulative payments (466) (135) (408) (674) (721) (258) (116) 0 (100) (2,878) Outstanding claims undiscounted ,351 Discount (133) 2001 and prior 3 Claims handling expenses 377 Outstanding claims as per balance sheet Risk Margin (Main Scheme only) Final Outstanding claims as per balance sheet 1, , NSW SPORTING INJURIES COMMITTEE

53 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 14 Provisions Research and Injury Prevention Scheme grants Leave and Oncosts Current Non Current Note 16 Reconciliation of cash For the purposes of the Statement of Cash Flows, cash includes cash on hand and cash at bank and at call investments in money market instruments, net of outstanding bank overdrafts. Cash at the end of the financial year, as shown in the Statement of Cash Flows, is reconciled to the related items in the Balance Sheet as follows: Cash and cash equivalents 862 1, ,368 Movements in the Research and Injury Prevention Scheme Carrying amount at the beginning of the financial yesr Additional provisions recognised Amounts used (108) (142) Unused amounts reversed 0 (26) Carrying amount at the end of the financial year Note 15 Reconciliation of surplus/(deficit) for the year to net cash (used) by operating activities Surplus / (Deficit) 306 (443) (Decrease) in provision for outstanding claims (304) (114) Changes in net market (151) 172 value of investments unrealised CHANGES IN ASSETS AND LIABILITIES Decrease in receivables (74) 342 (Decrease) in creditors and accruals (Decrease) in provisions and unearned premiums Net cash (used) by operating activities (55) (55) 22 (59) (256) (157) Note 17 Contingent liabilities There are no known contingent liabilities ( NIL). Note 18 Related party transactions The Sporting Injuries Committee receives administration support from the WorkCover Authority of New South Wales. This includes human resources, information technology maintenance and support, legal advice, purchasing and procurement of goods and services and vehicle fleet administration. The Committee pays WorkCover NSW an administration fee for these services. For the current year the Committee paid an amount of $20,000 ( $22,000). The Committee also receives accounting support from the WorkCover Authority of New South Wales, and pays an accounting fee for these services. For the current year the Committee paid an amount of $17,000 ( $15,000). Note 19 Commitments The Committee has no known commitments not already included elsewhere in this financial report. End of audited Financial Statements. ANNUAL REPORT /10 51

54 Appendices Appendix A Sporting Injuries Committee Budget Statement Budget Actual Budget /2011 / / Premiums Contributions Net claims incurred (323) (227) (276) Premium liability deficiency (15) 33 0 Other underwriting expenses (222) (173) (193) UNDERWRITING RESULT Injury prevention levies Other revenues Other operating expenses (529) (466) (576) OPERATING SURPLUS/ (LOSS) (80) Appendix B Sporting Injuries Committee Statement of Comprehensive Income for the year ended 30 June Schemes Sporting Injuries Insurance Scheme Supplementary Sporting Injuries Benefits Scheme TOTAL Revenues $'000 $'000 $'000 $'000 $'000 '000 Premiums Contributions Net claims incurred (159) (468) (68) 44 (227) (424) Premium liability deficiency Other underwriting expenses (139) (146) (34) (42) (173) (188) Underwriting Result Investment and other revenue 233 (23) (23) General and administrative expenses* (374) (488) (92) (139) (466) (627) (141) (511) (92) (139) (233) (650) Operating surplus 306 (443) (443) Total changes in equity other than those from transactions with owners as owners 306 (443) (443) 52 NSW SPORTING INJURIES COMMITTEE

55 Appendix C Sporting Injuries Committee Comparative Balance Sheet as at 30 June Schemes Sporting Injuries Insurance Scheme Supplementary Sporting Injuries Benefits Scheme TOTAL Assets $'000 $'000 $'000 $'000 $'000 $'000 Trade and other receivables Financial assets 1,773 1, ,773 1,372 Cash 860 1, ,368 Total Assets 2,976 3, ,520 3,551 Liabilities Outstanding claims 1,497 1, ,944 2,249 Trade and other payables Provisions Total Liabilities 2,244 2, ,788 3,125 Retained surplus Appendix D Sporting Injuries Committee Comparative Cashflow Statement for the year ended 30 June Schemes Sporting Injuries Insurance Scheme Supplementary Sporting Injuries Benefits Scheme TOTAL OPERATING ACTIVITIES inflows $'000 $'000 $'000 $'000 $'000 $'000 Premiums Contributions Other OPERATING ACTIVITIES outflows Claims paid (441) (364) (92) (174) (533) (538) Administration and other costs (620) (807) (66) (186) (686) (993) Other (5) 0 (5) 0 Net Cash used in Operating Activities (257) (157) 1 0 (256) (157) INVESTING ACTIVITIES (250) (250) Net increase/(decrease) in cash (507) (506) 268 Cash at beginning of financial year 1,367 1, ,368 1,100 Cash at end of financial year 860 1, ,368 ANNUAL REPORT /10 53

56 OUR ADMINISTRATION Office Services The NSW Sporting Injuries Committee utilises the resources and facilities of the WorkCover Authority of New South Wales and is part of the Compensation Authorities Staff Division (CASD). The Committee Secretariat operates in office space allocated within WorkCover NSW s Head Office in Gosford and utilises the various administrative resources provided by WorkCover NSW under a service level agreement including: human resources services including recruitment, training and development, payroll and industrial relations services and occupational health and safety policies and practices accounting services and investment expertise legal services records management services general office services advice and support relating to policies, procedures and practices common to state government organisations. Details of WorkCover NSW s policies, plans and achievements in these areas are published in the WorkCover NSW Annual Report on its website at workcover.nsw.gov.au. Communications and Website The Committee s website is its key channel to disseminate information to sporting organisations, registered participants, schools, research institutions and major stakeholders. All of the Committee s forms and publications are available to be downloaded from the site The website is regularly updated to ensure accuracy and to also provide the latest information available. As part of the Secretariat s commitment to streamline processes and reduce costs, most of our communication is via . Regular communication is made to sporting organisations, participants, schools, research institutions and stakeholders. Guarantee of Service The NSW Sporting Injuries Committee ensures that all its member sporting organisations and their participants receive prompt, courteous and professional assistance and responses to their enquiries. There were no complaints received during the year. Overall the Committee s Secretariat provides excellent personal service to the Committee s clients and members of the public. Government Information (Public Access) Act On 1 July, the Government Information (Public Access) Act (NSW) replaced the Freedom of Information Act 1989 (NSW). The new system is focussed on making government information more readily available. The Compensation Authorities Staff Division (CASD), along with all other government departments, government Ministers and their personal staff, public authorities and offices, local councils and courts will now release information as set out under the new Act. CASD was formed as part of the NSW Government s creation of Principal Agencies in July. The CASD group sits within the Treasury portfolio. Agencies in the CASD group are WorkCover NSW, NSW Sporting Injuries Committee, Dust Diseases Board, Lifetime Care and Support Authority, Long Service Payments Corporation and the Motor Accidents Authority. Under the new Government information laws, there are four ways in which CASD agency information will be available: Mandatory release: Certain information will be disclosed on an agency s website, free of charge. This includes policy documents, current publication guide, disclosure log and register of government contracts. Proactive release: Each CASD agency will make information available to the public, in addition to the information contained on their website. Agencies will release as much government information as possible, in an appropriate way and free of charge (or at the lowest reasonable cost). Informal request: Specific information can be requested, with information to be potentially released without the need for a formal application, unless it is determined one is required. Formal application: Formal requests for information can be made in limited circumstances. Information can be accessed by contacting WorkCover NSW on or [email protected]. The Committee received one application under the Freedom of Information Act 1989 during the year ended 30 June. There were none received in the previous year. All of the seven members of the Committee are representatives of the sporting community and, as such, participate in policy formulation. 54 NSW SPORTING INJURIES COMMITTEE

57 Privacy and Personal Information Protection The Privacy and Personal Information Protection Act 1998 (PIPP Act) introduced a set of privacy standards for New South Wales public sector agencies. The Committee relies upon and follows the standards and framework developed by WorkCover NSW to ensure compliance with the PPIP Act. Part 5 of the PPIP Act provides that a person who is aggrieved by the conduct of a public sector agency is entitled to a review of that conduct. The Committee did not receive any applications for internal review under Part 5 and no internal reviews were conducted in 2008/. Legislative Changes The Sporting Injuries Insurance Regulation was amended effective 1 September to: increase the amount that may be paid to sporting participants for the reimbursement of funeral expenses from $4560 to $9000 reduce the level of permanent loss that is required to be suffered by sporting participants to be eligible for a benefit in respect of the permanent loss of use of an arm or leg from 33 per cent to 30 per cent and for permanent loss of hearing in both ears from 11 per cent to 10 per cent. The improvements to funeral benefits and the greater access by participants to benefits for seriously injured arms, legs and loss of hearing were made with no increase to insurance premiums. Risk Management The NSW Sporting Injuries Committee is strongly committed to a risk management framework. A structured risk management approach has been developed to identify all major risks and ensure there are mitigating controls in operation. The risk management approach has been developed to enhance the day to day business of the Committee as well as form a basis for its strategic direction. The approach has closely modelled the risk management framework of the Compensation Authorities Staff Division. The risk management plan relies upon WorkCover NSW s insurance policies and disaster recovery and business continuity plans. Effective risk management is an important part of the Committee s business and in properly servicing its stakeholders. The risk management plan has been endorsed by the Committee and will be regularly discussed, reviewed and updated when required. Significant Judicial Decisions There were no significant judicial decisions during the year. Departures from the Subordinate Legislation Act There were no departures from the Subordinate Legislation Act during /. ANNUAL REPORT /10 55

58 INTERNAL AUDIT AND RISK MANAGEMENT ATTESTATION (signed) 56 NSW SPORTING INJURIES COMMITTEE

59 Financial Management The NSW Sporting Injuries Committee maintains a strong financial control environment to ensure its financial responsibilities are met. A budget is prepared at the commencement of each financial year and is approved by the Committee. Management accounts are prepared on a monthly basis and the results are compared to budget, any major trends are explained and forecasts revised when required. The Committee engages WorkCover NSW to perform its finance function thus ensuring segregation of duties and delivery of the appropriate financial expertise. Investment Performance All non-operational funds are invested in the NSW Treasury Corporate Hour-Glass managed funds facilities in accordance with the investment authority provided by the Public Finance and Audit Act Payment of Accounts The Committee is committed to achieving a 100 per cent target with respect to making payments within the payment terms required by suppliers. No interest was incurred in the year. The Committee does not have a corporate credit card. All expenses are paid by cheque. Current (within due date) $ < 30 days overdue $ days overdue $ days overdue $ 90+ days overdue $ Quarter September 550, December 336, March 149, June 385, TOTAL 1,421, Consultancies Consultancy Area Actuarial Valuations Ernst & Young 26,644 Cost $ Actuarial Disclosure Notes Preparation Ernst & Young 15,500 ANNUAL REPORT /10 57

60 Economic/other factors affecting operation objectives Except as stated in the accompanying financial statements, there were no economic or other factors affecting the achievement of operational objectives in / (none in 2008/). Human resources The NSW Sporting Injuries Committee s Secretariat comprises three officers working under the direction of the Executive Officer. All staff are employed through the Compensation Authority Staffing Division (CASD) and are on secondment to the Committee. Committee employee categories 2008 Clerk Grade 11/ Clerk Grade 7/ Clerk Grade 3/ Clerk Grade 1/2* 1 1 Total * As at December the Clerk Grade 1/2 position was regraded to a 3/4 position. All salary, wages and associated on-costs are met by the CASD in accordance with the NSW public sector pay structure. The Committee reimburses CASD for all payroll costs on a monthly basis. Performance and Numbers of Executive Officers No Senior Executive Service (SES) officers were employed by the NSW Sporting Injuries Committee. Requirements Arising from Employment Arrangements The NSW Sporting Injuries Committee does not provide personnel services to any statutory body. Multicultural Services Program The NSW Sporting Injuries Committee remains committed to the principles of multiculturalism. Engaging Compensation Authorities Staff Division (CASD) to provide human resource services enables the Committee to be included in the effective strategies and initiatives undertaken by WorkCover NSW in this area. WorkCover NSW s Multicultural Services Program supports the principles of multiculturalism and outlines strategies to achieve equitable access to its services and provisions. Through WorkCover NSW, the Committee is committed to the four objectives of the Community Relations Plan of Action 2012 relating to equity, access, participation and rights. The Committee does not have an agreement with the Community Relations Commission. Equal employment opportunity Equal Employment Opportunity (EEO) principles continue to be implemented by the NSW Sporting Injuries Committee consistent with WorkCover NSW s EEO principles. Please refer to WorkCover NSW s annual report workcover.nsw.gov.au for its report on EEO achievements and strategies. Occupational health and safety The NSW Sporting Injuries Committee rents office space and services from WorkCover NSW and thus adheres to WorkCover s Occupational Health and Safety policies and procedures. There were no work related injuries or illnesses or prosecutions in the financial year ending 30 June (none in ). Disability action plan The NSW Sporting Injuries Committee participates in WorkCover NSW s Disability Action Plan in meeting the needs of service users. Please refer to WorkCover NSW s annual report workcover.nsw.gov.au for its report on its Disability Plan and initiatives for 30 June. Disclosure of controlled entities and subsidiaries The NSW Sporting Injuries Committee did not have any controlled entities or subsidiaries during /. 58 NSW SPORTING INJURIES COMMITTEE

61 Representation on significant statutory bodies and interdepartmental committees The Committee did not have representation on any significant statutory bodies and interdepartmental committees during the year. Significant committees of the NSW Sporting Injuries Committee There were no significant committees of the NSW Sporting Injuries Committee convened during the year and no significant committees were established or abolished during the year. Land Disposal and State Heritage Register The NSW Sporting Injuries Committee owns no land or buildings. Energy and waste management The NSW Sporting Injuries Committee is committed to safeguarding our planet through the effective management of energy consumption and waste management. In utilising the services of WorkCover NSW, the Committee embraces all environmental strategies and goals of WorkCover NSW. Contact us The contact details of the NSW Sporting Injuries Committee are: Address: Donnison Street, Gosford NSW 2250 Telephone: (02) Facsimile: (02) Web: ABN: Office Hours: am to 5.00pm, Monday to Friday Acknowledgements The Committee wishes to thank its officers for their dedication and loyalty throughout the year. Appreciation is also extended to the staff of WorkCover NSW for their co-operation and assistance and to Communities, NSW Sport and Recreation and the Department of Education, School Sports Unit for their assistance and ongoing promotion of the Committee s important services across New South Wales. The Committee would also like to thank Sporting Injuries Insurance Scheme members and participants for their assistance and cooperation, without which the Committee could not function effectively. Overseas visits There were no overseas visits during the year. Production cost of annual report The cost of designing and printing the annual report is approximately $6500 (60 Copies). A copy of the annual report is available from the NSW Sporting Injuries Committee website or its office at no cost. ANNUAL REPORT /10 59

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