public trustee gpo box 1338 adelaide south australia …...prepared by public trustee corporate...

PU BL I C T R U ST EE GPO Box 1338 Adelaide South Australia 5001 | T 08 8226 9200 | F 08 8226 9350

Country freecall 1800 673 119 | www.publictrustee.sa.gov.au

http://www.publictrustee.sa.gov.au/

Prepared by Public Trustee Corporate Services.

Public Trustee 211 Victoria Square Adelaide SA 5000 www.publictrustee.sa.gov.au Email: [email protected] Tel: 08-8226 9200 Fax: 08-8226 9350 ABN: 72-906-921-697 ISSN: 1441-2799 (Print) ISSN: 1836-263X (Online)


mailto:[email protected]

TO: The Honourable John Rau MP, Attorney-General Cc. Caroline Mealor, Acting Chief Executive, Attorney-General’s Department FROM: Debra Contala, Public Trustee

SUBJECT: Annual Report 2015–16

Pursuant to Section 51 of the Public Trustee Act 1995 and in accordance with the Public Sector Act 2009, I present the Public Trustee 2015-16 Annual Report for the year ended 30 June 2016. Pursuant to clause 31 (1) of the Public Trustee Act 1995, the Common Funds Annual Financial Report, as contained within the Public Trustee Annual Report, will be distributed to investors by 31 October 2016.

Debra Contala Public Trustee 29 September 2016

MINUTES forming enclosure to: PTCR16/003

The Year in Review .............................................................................................................. 6

Role and Governance .......................................................................................................... 9

Function ......................................................................................................................... 9

Legislative Responsibilities ............................................................................................. 9

Charter ........................................................................................................................... 9

Organisational Structure ................................................................................................11

Services ........................................................................................................................12

Committees ...................................................................................................................16

Strategic Plan .....................................................................................................................17

Strategic Plan 2014–17 .................................................................................................17

Strategic Plan Achievements in 2015–16 ......................................................................18

Priorities for 2016–17 ....................................................................................................25

Relationship with South Australian Government Objectives ..........................................26

Human Resources ..............................................................................................................28

Work, Health, Safety and Injury Management (WHS&IM) ..............................................28

Employment Opportunity Program ................................................................................28

Training and Development ............................................................................................28

Disability Access and Inclusion......................................................................................29

The Whistleblowers Protection Act 1993 .......................................................................29

Organisational Support ......................................................................................................30

Consultancies ................................................................................................................30

Contractual Arrangements .............................................................................................30

Freedom of Information .................................................................................................30

Information Privacy Principles .......................................................................................30

Overseas Travel ............................................................................................................31

Public Complaints..........................................................................................................31

Public Sector Fraud .......................................................................................................31

Sustainability Reporting .................................................................................................31

Financial Performance .......................................................................................................33

Corporate Financials .....................................................................................................33

Customer Investments ..................................................................................................35

Appendices .........................................................................................................................39

Committees – roles and memberships ..........................................................................39

Common Funds - statutory information ..........................................................................41

Workforce – human resources data ...............................................................................47

Annual Financial Statements .............................................................................................49

Debra Contala The Public Trustee

It has been another busy year for Public Trustee (PT). There has been a continued focus on customer service, in particular improving communication. In October 2015 we launched a new website. Content was revised to ensure currency of information and the use of plain English. The new site has improved accessibility, including compatibility with mobile devices, and has an excellent search function. Since the launch, we have had more than 37 000 visitors to our website. This year PT released a new customer newsletter PT Now to provide customers with information about news, important facts and upcoming events. The newsletter is distributed in customer welcome packs and at community engagement events.

We also introduced a new-look email newsletter for key stakeholders. The e-newsletter includes articles about key activities, initiatives and staffing changes to ensure we communicate well with our business partners, other industry and government contacts. We have received positive feedback from customers and business partners about the newsletters. In late 2015, we were delighted to host a visit by officers from the Public Trustee Fiji (sponsored by the Department of Foreign Affairs and Trade). Mr Atonio Takala, Chief Executive Officer and Mr Abdul Kamil, Manager Estates and Trusts spent time with us to learn more about our systems and processes. The visitors greatly appreciated the information shared and we will work to foster a strong working relationship going forward. In 2016, Public Trustee undertook its sixth customer satisfaction survey which found that satisfaction with services remained high and had improved in most areas. It was pleasing to learn that for all our services, most respondents indicated they were receiving a high level of service and on average, 87 per cent of our customers would recommend PT to others. The excellent survey results reflect the pride taken by staff in the professional services provided on a daily basis. We continued to reform and improve our business during the year. A highlight of this work was the development of new software for managing documentation. The new software system, Electronic Document Generation for Estates (EDGE), captures and saves all relevant estate details which avoids duplicated data entry. Relevant documents are then produced as needed, resulting in considerable efficiencies. From time to time in our role as trustee, PT is required to arrange funerals on behalf of our customers. In order to improve our contract arrangements and obtain good value for money, PT established a panel contract for funeral service providers in the metropolitan area. We aim to develop further panels for key customer requirements in the coming year. In 2015–16, PT’s profit (before income tax equivalent payments) was $14,000. This was less than budgeted mainly due to lower than expected income from commissions and charges. The returns on PT’s investments this year were sound. Four of our five investment strategies outperformed their standard industry benchmarks. Global markets continued to be volatile but PT’s defensive strategies performed well for customer funds. At 30 June, we had more than $1 billion (including superannuation) invested.

A staff recognition program was introduced this year. All staff are eligible to be nominated for providing excellent customer service. Our workplace wellbeing committee also established a program of initiatives to promote health and wellbeing for PT staff. After undertaking extensive market research a marketing campaign was developed in 2015–16. A new creative approach was taken with a view to engaging the 30–49 age group while still maintaining broader appeal. The campaign message of Good to Go aims to prompt people to think about whether their affairs are in order if something unexpected should happen. Unfortunately a former employee of the deceased estates section was charged with dishonesty offences late in 2015–16. The allegations do not relate to PT’s Will-writing, Tax, Trusts, Personal Estates or Regulatory branches. PT cooperated fully with investigators and an external review of the staff member’s previous files is underway. In the year ahead, we will build on the work we have done this year. We are excited by our new marketing campaign and the increased awareness of our services. Financial sustainability is a priority for all organisations and we continue to seek to maximise returns for our investment customers. As 2015–16 concludes, I would like to extend my thanks to all staff for their continued dedication, commitment and hard work.

Debra Contala Public Trustee

Function

Public Trustee (PT) is a multi-disciplinary Government Business Enterprise offering a range of services in Will-making, estate management and financial administration to the South Australian community. As a Public Non-Financial Corporation (under the Public Corporations Act 1993), PT also has the powers of a natural person – as opposed to a legal person. ‘The Public Trustee’ is a statutory officer role appointed under the Public Trustee Act 1995 and leads the organisation. PT generates its own income, makes tax-equivalent payments annually, and pays a dividend to government out of its after-tax profits as agreed by the South Australian Attorney-General and the Treasurer.

Legislative Responsibilities

PT has administrative responsibility, through the Attorney-General, for the following legislation:

Public Trustee Act 1995.

Other Acts that form the basis of how, and which, PT services are delivered to customers are as follows:

Administration and Probate Act 1919; Aged and Infirm Persons’ Property Act 1940; Family Relationships Act 1975; Guardianship and Administration Act 1993; Inheritance (Family Provision) Act 1972; Legal Practitioners Act 1981 Powers of Attorney and Agency Act 1984; South Australian Civil and Administrative Act 2013 Trustee Act 1936; and Wills Act 1936.

Under the provisions of Section 5(2) of the Public Trustee Act 1995, PT may act as: a trustee, executor of a Will, administrator of an estate (whether or not of a deceased person), manager, receiver, committee, curator, guardian, next friend, agent, attorney, or stakeholder.

Charter

Under the Public Corporations Act 1993, a Charter must be prepared for a public corporation by its Minister and the Treasurer. The Charter, agreed by the Attorney-General, the Treasurer and the Public Trustee, describes the reporting and accountability requirements and sets out the responsibilities and the expectations of both PT and the Government. The Charter is reviewed annually. The Charter also requires an agreed annual performance statement that outlines PT’s objectives for invested customer funds, and financial and other performance targets.

Organisational Structure

The Public Trustee

Investment Advisory

Committee

Audit & Risk Management Committee

Business & Client

Financial Services Customer Services

Information and Communications

Technology

Corporate Services

Regulation of Private Financial Administrators

Personal Estates

Estate

Services

Wills & Related Services

Customer Relationships

Team

Investment Services

Trusts

Taxation Services

Deceased Estates

Client Financial Services

Legal

Services

PT’s services are varied and specialised in nature. The following summary highlights the activities undertaken by the organisation in 2015–16.

Wills and Powers of Attorney Free Will and Power of Attorney drafting services are provided for all South Australians who nominate PT as their executor, attorney or substitute attorney. Wills and Powers of Attorney are complex legal documents which should be professionally drafted to ensure they are valid and legally binding. PT staff have extensive knowledge and skills pertaining to Wills and Powers of Attorney and provide these professional services from the Adelaide Office, eight suburban and fourteen regional locations.

A visitation service is provided for those customers who are infirm, in hospitals or nursing homes and are non-ambulant. This ensures that all potential customers have access to services that may not otherwise be available to them.

Deceased Estates Administration As executor of an estate, PT acts independently in carrying out the instructions contained in a Will, carrying out the deceased person’s wishes with sympathetic concern for their family and beneficiaries. PT is often selected by beneficiaries as the trustee of choice for estates when a person dies intestate – that is, when a person dies without a Will. Where beneficiaries are not known, the law stipulates PT must assume the role of administrator. PT is also selected as the trustee for many estates when the executor named in the Will renounces or is unable to fulfil their role. The consent of the beneficiaries is obtained before any administration of the estate commences. PT may also be appointed to administer an estate by an order of the Supreme Court.

Unclaimed Money It is not always possible to identify or locate some or all of the beneficiaries of an estate. Under these circumstances, the realised assets of the estate are held in an interest-bearing PT account for a statutory period of six years. After that, the funds must then be paid to the South Australian Department of Treasury and Finance (DTF). Where a beneficiary of any unclaimed money can provide evidence of their entitlement to the funds, these can be reclaimed from DTF.

PT offers a range of taxation services for customers, specifically around tax compliance, deceased estates, trusts, personal estates, income tax and other related matters. PT is responsible for preparing statutory reports for the Australian Taxation Office (ATO), Australian Charities and Not-for-Profits Commission. In addition, assistance is provided in relation to customer wages, WorkCover, superannuation and Centrelink matters. Where possible, all taxation returns during 2015–16 were lodged within timeframes set by the ATO.

InvestmentsPT is responsible for the management of customers’ funds and assets. The majority of investments are managed through five Standard Investment Strategies (Cash, Capital Stable, Balanced, Growth and Equities) with a combination of in-house expertise and the appointment of carefully selected external investment fund managers. Regular expert advice is also received from an external investment adviser.

Personal Estates In accordance with the legislation, PT provides personal estate administration services for living customers who have an order issued by the South Australian Civil Administrative Tribunal (SACAT), South Australian courts, and for customers under an activated Enduring Power of Attorney. PT can be appointed to be legally responsible for making all, or some, of a person’s financial and legal decisions. Where PT is appointed to manage a person’s financial affairs, the service includes payment of accounts.

Trusts PT manages court-awarded trusts, trusts established by a Will and trusts under deed for minors, as well as perpetual charitable trusts and scholarship trusts. The other major type of trust administered is a life interest trust, where the nominated beneficiary (the life tenant) receives a benefit during their life or for a specified time. The life tenant may have the right to live in a property or may receive the income from the investment of trust funds. In such cases the capital of the trust is preserved for the ultimate beneficiaries (the remaindermen).

Litigation Guardian PT may also be appointed by a court to act as ‘next friend, litigation guardian’ for some customers unable to conduct their own legal proceedings. A litigation guardian is someone who is appointed by the court in a particular matter. They represent the interests of a minor or a person who has a disability and is consequently not able to manage their own affairs or make decisions about the proper conduct of legal proceedings.

Monitoring Private Administrators and Managers Under the Guardianship and Administration Act 1993 and the Aged and Infirm Persons Property Act 1940, PT is required annually to examine and report on activities of private financial administrators and managers appointed by SACAT and the courts. This also includes examination of financial accounts submitted by private administrators who have been appointed by the Supreme Court to administer intestacies or estates where an executor is unwilling or unable to complete an administration. During 2015–16 PT continued to provide monthly briefing sessions for newly appointed administrators, offering information about their responsibilities.

Managing Customer Funds and Assets Managing customer finances involves accounting, funds administration, asset management and customer accounts payable and receivable activities. Where customers are unable to manage their own financial affairs, PT will make regular payments to customers for food, accommodation and other critical living expenses. The administration of funds involves accounting and reporting on the management and performance of PT’s Standard Investment Strategies and Common Funds.

Table 1: 2015–16 Services

2015–16 2014–15

Documents prepared (including during home visits)

Wills (new and revised) 1 784 1 818

Enduring Powers of Attorney (new and revised) 335 298

Documents prepared during home visits

Number of home visits 195 237

Wills (new and revised) 101 147

Enduring Powers of Attorney (new and revised) 18 21

Deceased estate administration

New cases 587 604

Completed estate matters 498 682

Estates currently under administration1 1 123 1 031

Grants of probate and administration received for the period 452 524

Informal estates administered 79 80

Unclaimed money balances - finalised at 30 June, payment early next period

Number of unclaimed balances paid to DTF 20 95

Value of unclaimed balances paid to DTF $166 822 $628 872

Annual taxation returns

Taxation returns completed 6 946 7 256

Personal estate administration

Total number of personal estates under administration1 (including

SACAT orders, court awards and Powers of Attorney)

4 178 4 097

Number of new customers under SACAT Orders 351 355

New court-award customers 27 40

Total funds received from new court awards $5.9m $11.5m

New Power of Attorney customers 29 40

Number of in-person meetings with Personal Estates Branch customers 509 468

Court-awarded funds under administration (includes court award customers and court award trusts)

$387.2m $398.2m

No-fee threshold $4 800 $4 750

% of customers under administration from whom no fees were collected 17.8% 16.6%

Trust activity

New trusts 70 79

New court-awarded trusts 44 32

New life interest trusts 11 12

Trust matters finalised 132 361

Trusts on hand at 30 June 1 437 1 444

Trusts for children under the care of the Minister

Trusts for children under the care of the Minister for Communities and Social Inclusion on hand at 30 June

26 29

Completed trusts for children under the care of the Minister for Communities and Social Inclusion

3 3

Litigation guardian appointments

Number of next friend/litigation guardian matters on hand 69 55

New litigation guardian customers 17 12

1 The 2014-15 comparative has been restated since the 2014-15 Annual Report to improve data comparability.

Table 1 (continued): 2015–16 Services

Private administrators and private managers – review of financial

statements

Private administrators appointed under the Guardianship and Administration Act 1993

1 262 1 261

Private managers appointed under the Aged and Infirm Persons’ Property Act 1940

160 148

Alternate executor administrations pursuant to a court order 379 334

Customer financial services activity

Funds under administration (including superannuation) $1 008.9m $1 008.0m

New funds invested for the reporting period $78.1m $44.4m

Funds redeemed for the reporting period $81.8m $52.1m

Total Common Fund trades for the reporting period $1 378.9 m $1 682.7 m

Distributions to customers $36.9m $19.6m

Total number of payments made 410 095 397 806

Total value of payments made $290.2m $289.1m

Total customer funds receipted

value of pensions included

$268.5m

$71.3m

$265.9m

$64.4m

Total value of real estate properties held $312.5m $308.5m

Total value of managed customer assets $1 393.5m $1 379.1m

Committees

Five committees provided advice to the PT in 2015–16. These were:

Investment Advisory Committee; Funds Management Forum; Corporate Investment Committee; Audit and Risk Management Committee; and Information and Communications Technology (ICT) Committee.

Refer to the Appendices for further information about each committee.

Strategic Plan 2014–17

Public Trustee’s (PT) 2014–17 Strategic Plan details the organisation’s vision, mission, core values, objectives and strategies.

Vision To be trusted and respected for providing caring and professional services. Mission To support South Australians, including the most vulnerable, by providing excellent service in Will making, estate management and financial administration. Core Values Service; Professionalism; Trust; Respect; Collaboration and Engagement; Honesty and Integrity; Courage and Tenacity; Sustainability.

Objectives Strategies

Customer Service

We are committed to achieving service excellence by delivering services in a professional, consistent, coordinated and timely manner.

Ensure service standards remain current and effective

Develop a streamlined customer-centric model of customer service

Improve communication to customers Improve services to Aboriginal customers

and customers from other cultures

Governance and Leadership

We will deliver our objectives through good governance, strong leadership, and sound risk management.

Ensure leaders are empowered to act and work as a team

Build and maintain the confidence of key stakeholders

Build internal capabilities in risk management

Ensure future leaders are well supported to continue developing

Business Improvement

We will identify opportunities to improve and enhance all areas of our business processes.

Continue to upgrade ICT systems to ensure they are modern and support business processes

Transform and simplify business processes to cut red tape

Improve records management to ensure customer information is easy to access

People and Culture

We will invest in our people and create a rewarding environment in which to work.

Ensure all staff are well inducted and trained Encourage staff to engage more actively in

the communities PT serves Build a culture based on mutual respect,

personal accountability and support Continually improve workplace health and

safety

Financial Stability

We will ensure the organisation remains profitable and meets agreed fiscal targets.

Continually promote PT services Develop new business initiatives Improve the transparency of PT’s financial

framework Review perpetual trusts

Strategic Plan Achievements in 2015–16

PT is committed to achieving service excellence by delivering services in a professional, consistent, coordinated and timely manner.

Objective 1: Customer Service

Launched a new corporate website with a refreshed design and easy-to-read content; www.publictrustee.sa.gov.au

Introduced a customer newsletter PT Now, to keep customers informed about relevant PT business and associated news and events.

Undertook a customer satisfaction survey with 87% of respondents indicating they would recommend PT to others. Further information is detailed below.

Introduced a stakeholder e-newsletter to improve communications to business partners and key stakeholders.

Continued to improve and enhance PT’s electronic system which records customer contact information.

Focusing on Customer Satisfaction

In 2016, PT undertook its sixth customer satisfaction survey.

PT surveys customers annually to support continuous improvement in service levels. Overall, the 2016 customer satisfaction survey found customer satisfaction with services remained high and had improved in most areas, particularly in executor services (deceased estates). In summary, the results of the survey were:

On average, 87% of responding customers said they would recommend PT to others (an increase from 84% in 2015);

For all services, most respondents indicated they were receiving a high level of service;

When asked to make suggestions for improvement, 24% of respondents voluntarily provided compliments about PT services, an increase of 3% since last year;

Some customers said that they would like to see improved communication, more timely services and process improvements; and

The overall response rate to this year’s survey was 29.5%.

Full details of the survey results can be found on PT’s website at www.publictrustee.sa.gov.au/about-us/customer-satisfaction-survey/


http://www.publictrustee.sa.gov.au/about-us/customer-satisfaction-survey/


PT delivers against organisational objectives through good governance, strong leadership, and sound risk management.

Objective 2: Governance and Leadership

Improved PT’s Information Communications Technology (ICT) governance arrangements by introducing a new ICT Committee structure and realigning ICT operations. Further information is detailed below.

Implemented an ongoing training plan for the Information Security Management Framework.

Hosted a visit from officers of the Public Trustee Fiji.

Implemented new policies and controls to meet requirements of the Anti-Money Laundering and Counter Terrorism Finance Act 2006.

Strengthened organisational cyber security, conducting an exercise to assess PT’s current cyber response capability.

Reforming Information Communications Technology

This year a review of PT’s ICT requirements and capabilities resulted in changes to governance arrangements and roles in the ICT Services branch. The strengthened ICT Committee structure ensures there is a strategic approach governing information technology planning, risk management and operations. The ICT Services branch has been realigned into two distinct teams, namely:

Operations and Support: Focused on end-user and core business systems support

with an overall team leader; and Projects and Business Change: Dedicated to initiating and completing projects, led by

a team leader with sound project management skills.

The reforms have improved services and project delivery, and better positioned the organisation to meet priorities for future systems upgrades.


PT will identify opportunities to improve and enhance business processes.

Objective 3: Business Improvement

Prepared, reviewed and tested business continuity plans for all branches.

Continued to work on the feasibility of upgrading the core ICT system.

Implemented a new system, Electronic Document Generation for Estates (EDGE), to improve efficiency and reliability of data through the automated generation of forms and letters. Further information is detailed below.

Developed system capability to email Electronic Funds Transfer remittances to vendors. This resulted in faster payments and payment information for suppliers, as well as reducing postage costs.

Documented business process maps in the genealogy, trusts and new estates teams.

Worked with the South Australian Civil and Administrative Tribunal (SACAT) to improve monitoring of private financial administrators.

Improving Document Management

The Electronic Document Generation for Estates (EDGE) system was implemented this year to improve efficiency and reliability of estate information. EDGE has removed the reliance on hard copies and addressed the inefficiency of multiple data entries by capturing all information relating to an estate and producing documents based on existing templates. Various documents can now be automatically generated, overcoming the previous, highly manual processes for producing documents. EDGE has already delivered significant efficiency gains for PT.


PT will invest in staff and create a rewarding environment in which to work.

Objective 4: People and Culture

Reviewed roles in the PT ICT Branch to ensure clear lines of accountability.

Introduced a formal avenue for recognising excellent staff service by nominating staff for reward and recognition awards. Further information is detailed below.

The Workplace Wellbeing Committee introduced new initiatives to support staff wellbeing and work–life balance.

Recognising Excellent Staff Customer Service

Following feedback from PT’s last Staff Climate Survey, a formal avenue for recognising excellent staff service has been introduced.

Any staff member can be nominated for a reward and recognition award, regardless of whether they are serving PT’s customers directly or providing service to other staff internally.

In 2015–16 eight employees were commended for outstanding customer service. The nominated staff received an invitation to PT’s Quarterly Leadership Forum and were presented with a certificate of recognition by management.

Strategic Plan Achievements in 2015–-16

PT will ensure the organisation remains profitable and meets agreed fiscal targets.

Objective 5: Financial Stability

Promoted PT services at relevant events and exhibitions including Super SA open days, International Day for People with a Disability and the World Elder Abuse Awareness Day conference.

Launched a successful marketing campaign to promote Will-making services. Further information is detailed below.

Reduced expenditure and achieved operational efficiencies to meet three-year savings targets set by the Department of Treasury and Finance.

Asking South Australians if they are ‘Good to Go’?

PT invested in a new marketing campaign to raise awareness about the importance of having a legal Will, ultimately aiming to increase business revenues. Market research indicated that one of the strongest benefits for finalising a Will is peace of mind. In contrast, the perceived barriers to making a Will included cost, time, complexity and complacency. PT’s ‘Good to Go’ campaign aims to emphasise that ‘life’s unpredictable, so for peace of mind make a Will with ease by contacting PT’. To date, the campaign has been rolled out across radio, bus shelters and various printed materials. For further information about the ‘Good to Go’ campaign and making a Will, visit PT’s website at www.publictrustee.sa.gov.au


Priorities for 2016–17

PT has identified the following key priorities that will be delivered against the Strategic Plan during 2016–17.

Objective 1: Customer Service

Review and reform the business delivery for estates case management.

Enhance records management.

Objective 2: Governance and Leadership

Continue to review business functions and achieve efficiencies to meet the requirements of customers.

Objective 3: Business Improvement

Continue to review and improve business processes.

Implement panel contracts for relevant customer services.

Objective 4: People and Culture

Implement an online Performance Development and Training Program for all staff.

Objective 5: Financial Stability

Continue to deliver a comprehensive marketing campaign and targeted customer relationship activities to encourage South Australians to make a Will and use PT’s other services.

Relationship with South Australian Government Objectives

PT aligns its business objectives and customer-focused services with the Attorney-General’s Department’s (AGD) Strategic Plan and South Australia’s Strategic Plan (SASP). Specifically:

AGD’s goals, ‘protecting rights and enforcing obligations’ and ‘working together’; and

SASP’s targets, ‘customer and client satisfaction with government services’ (target 32), and ’people with a disability’ (target 50).

PT supports AGD in achieving the following goals and strategies:

AGD Goal 2 Protecting rights and enforcing obligations

Strategy 2.2 Provide the information people need to protect their rights and understand their obligations

PT contributes to this by:

Maintaining a comprehensive website which provides relevant information to the South Australian community about our services, including: Wills and Powers of Attorney and the importance of preparing

and regularly reviewing these important documents; Personal financial management services for those who have

lost capacity to manage their own affairs; and Deceased estate administration.

Distributing to the community a range of current printed materials to promote the various services PT provides and the importance of having a current and valid Will.

Offering a witnessing service for Advance Care Directives. Undertaking a range of public speaking engagements to educate

the community about Wills and other relevant information.

Strategy 2.6 Safeguard vulnerable people through appropriate service environments and settings


Providing a range of services for vulnerable people. These include: Litigation guardian services – managing legal matters in the

courts for those who are unable to give instructions to solicitors; Regulatory services – reviewing the financial statements of

private administrators appointed by the South Australian Civil and Administrative Tribunal (SACAT) or the courts;

Managing small trusts and intestacies for the benefit of individuals with limited means;

Managing minors’ trusts for people under the age of 18 years; and

Providing personal financial management services when appointed by SACAT or the courts for those who have lost capacity to manage their own affairs.

AGD Goal 4 Working Together

Strategy 4.1 Measure what we do and be held accountable for our performance


Meeting requirements of the Charter under the Public Corporations Act 1993, which is agreed between the Attorney-General and the Treasurer.

Obtaining regular feedback from customers by way of annual customer satisfaction surveys.

Undertaking staff performance development reviews and surveys. Maintaining a database for customer feedback and using lessons

learned to make continuous improvements in customer service.

Strategy 4.4 Give our people the skills and tools they need to do their best work and get results


Actively pursuing training and development opportunities for all staff, linked to their individual performance plans.

Conducting programs of awareness training for staff in relevant disciplines such as mental health, disability, cultural awareness, and tax and legal reforms.

Strategy 4.6 Commit to service excellence for all of our customers


Striving to deliver services to our customers in a professional, consistent, coordinated and timely manner.

Surveying customers annually to support continuous improvement in service levels.

Publishing and implementing standards of service and providing feedback to staff about their customer service delivery against those standards on an annual basis through their individual performance management discussions.

Public Trustee (PT) is a statutory authority under the Attorney-General’s Department (AGD). As employees of AGD, PT adopts and implements the department’s work, health, safety, injury management and welfare policies, procedures and programs. A number of PT human resources statistics are included in AGD’s Annual Report, as part of whole-of-agency reporting requirements. For workforce statistics, please refer to the Appendices. Further human resources information is also available from the Commissioner for Public Sector Employment website at www.dpc.sa.gov.au/what-we-do/services-for-government/public-sector-management

Work, Health, Safety and Injury Management (WHS&IM)

PT is committed to ensuring that employees and contractors are safe from injury and risks to health and welfare while at work. The organisation seeks to provide a safe and healthy work environment, where active contribution and personal responsibility for health and safety by all workers is encouraged. PT has manager and employee representation on the AGD Health and Safety Committee which provides a consultative forum to support and continuously improve work, health, safety and wellbeing systems and practices. As part of the commitment to the safety of employees, six-monthly floor inspections were conducted to identify any hazards or risks and corrective actions were taken as needed. All staff had access to a confidential Employee Assistance Program, offering a counselling service to support and assist staff with both professional and personal issues.

Employment Opportunity Program

One employee successfully completed the ‘Jobs4Youth’ Program traineeship in 2015–-16. PT has since engaged a further two trainees on twelve-month traineeships through the program.

Training and Development

In 2015–16 PT continued its commitment to the training and development of employees. All staff (except those on extended absences) undertook a performance review discussion during 2015–16, in line with the AGD performance development process. The training needs identified during the performance review process will be used as the basis for developing the 2016–17 PT staff training plan. In 2015–16, PT staff undertook training and development in a range of areas such as business, customer service, ICT, workplace health and wellbeing and leadership. In addition, a staff recognition program was introduced to recognise outstanding customer service. PT encourages and supports employees who wish to further their education through university, TAFE or external studies, by offering learning and development leave and/or financial assistance. Twelve employees received assistance to pursue external studies

http://www.dpc.sa.gov.au/what-we-do/services-for-government/public-sector-management

during 2015–16. One employee commenced AGD’s Leadership and Management Development ‘Ignite’ Program.

Disability Access and Inclusion

In support of the Government’s Disability Access and Inclusion Plans, PT always seeks to ensure equity for people with disabilities and is committed to a workplace culture that fosters a positive environment free from discriminatory behaviours. During 2015–16 PT employed six staff with declared disabilities. From time to time PT works with Disability Works Australia to provide opportunities and support in the recruitment and the return to work of people with disabilities. New employees to PT complete the Equal Opportunity Awareness online training as part of their induction process.

The Whistleblowers Protection Act 1993

Part 3, Section 7 of the Public Sector Act 2009 stipulates that ’each public sector agency must ensure that a public sector employee (with qualifications determined by the Commissioner) is designated as a responsible officer for the agency for the purposes of the Whistleblowers Protection Act 1993’. PT has access through AGD to a number of responsible officers, whose details are available to staff via the AGD intranet, as well as the Whistleblowers Protection Policy and Whistleblowers Protection Guidelines and Procedures.

Consultancies

PT engaged one consultant during the year. Table 2: 2015–16 Consultancies engaged

Consultant Purpose of consultancy Number Total cost

Ernst & Young Business impact of replacing core business financials software

1 $59 053

Contractual Arrangements

As outlined in the Department of the Premier and Cabinet Circular 27 – Disclosure of Government Contracts, relevant PT contracts are disclosed on the SA Tenders and Contracts website, listed under the Attorney-General’s Department at www.tenders.sa.gov.au

Freedom of Information

PT is an agency within the provisions of the Freedom of Information Act 1991 (the Act). The following details are provided as part of the information statement required by the Act. The role and functions of the Public Trustee are set out in this Annual Report. Under Schedule 2 of the Act, PT is exempt from the provisions of the Act with respect to functions exercised as executor, administrator or trustee. Accordingly, only corporate functions are relevant under the provisions of the Act. There is no charge for requests to access information, where that information can be obtained by producing existing reports. For more complex requests, fees and charges will be levied as prescribed in the current regulations under the Act. PT received three requests for information during the 2015–16 financial year. All applications under the Act in relation to PT should be made in writing to:

The Accredited FOI Officer Attorney-General’s Department GPO Box 464 Adelaide South Australia 5001

Information Privacy Principles

The State Government of South Australia is committed to protecting the privacy of customer personal information. Accordingly PT complies with a set of Information Privacy Principles (IPPs). These are issued as a government administrative instruction and regulate the way personal information can be collected, used, stored and disclosed. The IPPs also provide a right for an individual to access and amend their personal information. For access to documents, including amendments of documents relating to personal affairs, please contact the Office of the Public Trustee during normal office hours (8.45 am to 5.00 pm) at 211 Victoria Square, Adelaide. Access to these documents is coordinated by the General Manager, Business and Client Financial Services. Enquiries can be made via email

http://www.tenders.sa.gov.au/

([email protected]), phone (08 8226 9200) or online at www.publictrustee.sa.gov.au (click on ‘Contact Details’ in the top right-hand menu bar).

Overseas Travel

During 2015–16 no overseas travel was taken by PT employees. As outlined in the Department of the Premier and Cabinet Circular 35 – Proactive Disclosure of Regularly Requested Information, any overseas travel undertaken is published on the Attorney-General’s Department website at www.agd.sa.gov.au/about-agd/public-online-access-government-information

Public Complaints

At all times PT seeks opportunities to improve services through customer feedback. Complaints include all customer expressions of dissatisfaction with PT services that require a response, and include complaints made to members of Parliament and external parties such as the Ombudsman. The number of complaints received in 2015–16 fell by 28.6% compared to the previous year. Table 3: 2015–16 Complaints

2015–16 2014-15

Total Complaints 50 70

Public Sector Fraud

PT has controls in its business processes to mitigate the risk of fraud. PT’s internal auditors conduct regular audits that are reported to the Audit and Risk Management Committee. In May 2016, PT became aware of alleged fraud against deceased estates. The offences are alleged to have been committed between July 2015 and May 2016. Whilst the matter is before the courts, PT commenced an independent forensic file review of historic files managed by the former staff member.

Sustainability Reporting

PT continually looks to improve the environmental sustainability of its operations. The office is equipped with low-emission furniture and carpet as well as low-voltage lighting. Current processes include recycling programs for paper and toner cartridges, use of recycled paper, movement-detector lights after hours, and separation of waste for recycling purposes. PT endeavours to ‘buy green’ when making purchases. The building owner of PT’s Adelaide office has provided a base building rating of 4.5 stars.


http://www.agd.sa.gov.au/about-agd/public-online-access-government-information

Corporate Financials

For the year ended 30 June 2016, Public Trustee (PT) achieved an operating surplus before tax of $14 000 compared to a budgeted operating surplus of $780 000. The operating surplus after income tax equivalents was $10 000 compared to a budget of $547 000.

Financial Outcomes The following tables and figures provide summaries of the Statement of Comprehensive Income, Statement of Financial Position and Statement of Cash flows. Tables show comparisons between either ‘actual to budget’ and/or ‘actual to prior year’ performance. Detailed financial reports covering PT’s Certification of the Financial Statements, the Independent Auditor-General’s report, and Corporate Financial Statements are presented in the Annual Financial Statements section of this report.

Summary of Statement of Comprehensive Income

Table 4: 2015-16 Operating Activities

Actual Budget Actual

2015-16 2015-16 2014-15

$000s $000s $000s

Revenue from ordinary activities 22 490 22 908 22 646

Expenses from ordinary activities and income tax equivalents 22 480 22 361 21 837

Net operating surplus from operating activities after income tax equivalents

10 547 809

Total changes in equity (before dividend payment) 10 547 809

Total changes in equity (after dividend payment) (219) (144) (631)

Commissions and fees from core business activities were $1.08 million below budget. Favourable outcomes against budget in both management fees ($263 000 favourable) and investment returns ($411 000 favourable) partially offset the unfavourable core business revenue outcomes. The unfavourable outcome in expenditure totalling $349 000, when compared to budget, contributed to the final outcome. Factors contributing to this result include:

Unrealised losses of $628 000 on investments at balance date as a result of volatile investment markets, including the impact of the British vote to exit the European Union in June 2016 (Brexit); partially offset by

A concerted effort to exercise expenditure restraint during 2015-16; and Savings in depreciation due to timing of capital expenditure.

Table 5: 2015-16 Summary Statement of Cash Flows

Actual Actual

2015-16 2014-15

$000s $000s

Operating activities:

Receipts 23 635 24 044

Payments (23 615) (23 303)

Net cash from operating activities 20 741

Investing activities:

Receipts - 1

Payments (207) (3 848)

Net cash used in investing activities (207) (3 847)

Financing activities:

Receipts - -

Payments (229) (1 440)

Net cash used in financing activities (229) (1 440)

Net increase in cash held (416) (4 546)

Cash at beginning of reporting period 6 759 11 305

Cash at end of reporting period 6 343 6 759

The major movements in the statement of cash flow are as follows:

The movement in operating activities reflects the outcomes in the Statement of Comprehensive Income;

Cash outflows from investing activities reflect the payment for additional purchase of units in overseas equities pooled fund and purchase of fixed assets; and

Cash outflows from financing activities reflect the payment of a final dividend ($227 000) for 2014-15 and an interim dividend ($2 000) for 2015-16 to the State Government.

Table 5: 2015-16 Comparison of Total Assets to Total Liabilities

As highlighted in the table above, the value of PT assets have declined by $219 000 compared to the previous year primarily due to the unrealised losses on investments.

Customer Investments

For the year ended 30 June 2016, PT’s investment strategies performed well against respective benchmarks. Investment returns were affected late in the financial year by the referendum decision of the United Kingdom (UK) to leave the European Union (EU); however, all of PT’s investment strategies still delivered positive returns. Overall, property and infrastructure were the best performing asset classes for the financial year. For the second year in a row Australian-listed property was the standout performer, returning 24%. Global interest rates continued to track lower and in May 2015, the Reserve Bank of Australia cut interest rates to an all-time low of 1.75%. The Australian dollar declined against most major currencies finishing at $0.74 US for the financial year. Pleasingly, all of PT’s investment strategies outperformed their respective benchmarks, with returns ranging from 1.19% for equities to 4.27% for the balanced strategy (net of fees). The investment returns for five years demonstrate that the long-term performance is strong, stable and continues to exceed benchmarks.

2015–16 Investment Strategies

For the year ended 30 June 2016, PT’s investment strategies performed well. Table 6: 2015–16 Standard Investment Strategies’ five-year performance

2015–16 Performance

Last 12 Months Annualised

%

3 Years Annualised

%

5 Years Annualised

%

Cash 2.19% 2.67% 3.40%

benchmark 1.23% 1.51% 2.10%

variance 0.96% 1.16% 1.30%

Capital Stable 3.35% 5.31% 5.64%

benchmark 3.32% 4.89% 5.28%

variance 0.03% 0.42% 0.36%

Balanced 4.27% 7.58% 7.70%

benchmark 3.56% 7.11% 7.36%

variance 0.71% 0.47% 0.34%

Growth 3.82% 8.75% 8.81%

benchmark 2.35% 7.96% 8.09%

variance 1.47% 0.79% 0.72%

Equities 1.19% 9.94% 9.78%

benchmark -0.62% 9.07% 8.77%

variance 1.81% 0.87% 1.01%

Table 7: 2015–16 SIS Performance versus CPI Objectives (as at 30 June 2016)

Investment Strategy

CPI Objective Investment

Horizon

Target Return

% pa

Actual Return

% pa

Over (+) /Under(-)

Outperformance % pa

Capital Stable CPI + 2.0% pa 3 Years 3.8% 5.3% + 1.5%

Balanced CPI + 3.0% pa 5 Years 4.8% 7.7% + 2.9%

Growth CPI + 3.5% pa 7 Years 5.8% 9.3% + 3.5%

Equities CPI + 4.0% pa 10 Years 6.4% 5.5% - -0.9%

2015–16 Asset Allocation

Table 8: 2015–16 Capital Stable Standard Investment Strategy

Common Fund Allocation (%) - 2016 Allocation (%) - 2015

Neutral Period

End $m Neutral Period

End $m

Australian Shares 11.0% 11.1% $8.15 12.0% 11.3% $8.07

Overseas Shares 8.0% 6.3% $4.62 8.0% 9.4% $6.68

Listed Property Securities 7.5% 7.8% $5.70 5.0% 5.0% $3.55

Long-term Fixed Interest 15.0% 15.4% $11.28 15.0% 15.0% $10.68

Short-term Fixed Interest 28.2% 28.5% $20.94 30.0% 29.5% $20.99

Overseas Fixed Interest 11.3% 11.6% $8.55 10.0% 10.2% $7.25

Cash 19.0% 19.3% $14.19 20.0% 19.7% $14.03

100.0% 100.0% $73.44 100.0% 100.0% $71.24

Table 9: 2015–16 Balanced Standard Investment Strategy


Neutral Period


End $m


Overseas Shares 16.0% 12.8% $26.23 16.0% 18.5% $38.60





Cash 4.5% 4.7% $9.53 5.0% 4.9% $10.15

100.0% 100.0% $204.91 100.0% 100.0% $208.78

Table 10: 2015–16 Growth Standard Investment Strategy


Neutral Period


End $m


Overseas Shares 24.5% 20.0% $39.79 25.0% 28.6% $59.86





Cash 4.5% 4.8% $9.44 5.0% 4.8% $10.07

100.0% 100.0% $198.58 100.0% 100.0% $209.21

Table 11: 2015–16 Equities Standard Investment Strategy


Neutral Period


End $m


Overseas Shares 45.0% 39.0% $27.66 45.0% 50.3% $40.19

100.0% 100.0% $70.98 100.0% 100.0% $79.86

Manager of Funds During 2015–16, PT continued its policy of engaging external fund managers for all funds except for cash and Australian fixed interest. Investment assessment of external fund managers requires ongoing monitoring and performance review. This process provides PT with access to expert advice, without sacrificing control over the style and balance of the common funds.

Peer Group ComparisonsComparative returns to 30 June 2016 (after fees). Table 12: 2015–16 Peer Group Comparisons

1 YR % 3 YR % 5 YR %

Public Trustee Peer Group Public Trustee Peer Group Public Trustee Peer Group

Cash 2.19% 1.90% 2.67% 2.30% 3.40% 2.50%

Capital Stable 3.35% 2.85% 5.31% 5.45% 5.64% 5.55%

Balanced 4.27% 2.60% 7.58% 6.55% 7.70% 6.70%

Growth 3.82% 2.05% 8.75% 7.85% 8.81% 7.65%

Equities 1.19% 0.15% 9.94% 9.30% 9.78% 8.50%

*Note: the peer group returns are based on a survey of multi-sector unit trusts that have similar asset allocations to Public Trustee strategies.

Committees – roles and memberships

Audit and Risk Management Committee The Audit and Risk Management Committee is responsible for providing independent scrutiny of PT’s risk, control and compliance framework, and its internal and external accountability responsibilities. The committee has a broad skill base, and comprises four independent members (including an independent Chair) and one senior member of PT’s staff. All members are appointed by the Public Trustee following consultation with the Chief Executive of the Attorney-General’s Department (AGD). The Public Trustee, the General Manager Business and Client Financial Services and representatives of the Auditor-General also attend meetings of the committee. A representative from the Department of Treasury and Finance (DTF) is provided the meeting papers and is invited to attend. As at 30 June 2016, the committee comprised: Virginia Hickey, Director, @ the Board Table (Chair); Tanya Brooks, Principal Accountant, Treasury and Parliamentary Reporting, AGD; Chris Oerman, Independent Member; Steven Woolhouse, Chief Finance Officer, Department of the Premier and Cabinet; and Frankie Anderson, General Manager Customer Services, PT.

The committee meets at least five times per year and reports annually to the Public Trustee, on its operation and activities. A copy of the report is provided to the Chief Executive of AGD by the Public Trustee. The report includes: A summary of PT’s progress in addressing the findings and recommendations made in

internal and external audit reports; An overall assessment of PT’s risk, control and compliance framework, including details

of any significant emerging risks or legislative changes that may have an impact on PT; and

The number of meetings held during the relevant period and the number of meetings attended by each member.

During 2015–16, the committee considered a number of internal audit reports. The internal audit program was based on a comprehensive assessment of the organisation’s key risks.

Information and Communications Technology Committee The Information Communications Technology (ICT) Committee advises on the priorities, planning and management of ICT within the context of PT’s Strategic Plan. The committee meets at least four times a year. The committee consists of: Debra Contala, the Public Trustee (Chair); Tony Brumfield, General Manager Business and Client Financial Services; Frankie Anderson, General Manager Customer Services; David Martino, Manager ICT; and Scott Bayliss, Executive Director, Projects and Technology, AGD.

Investment Advisory Committee PT’s Investment Advisory Committee ensures that a sound and efficient system for customer investments is maintained. Chaired by the Public Trustee, the committee meets quarterly to provide appropriate advice, review the performance of PT’s investments, and make recommendations on investment matters. PT’s investment guidelines and procedures clearly define investment processes for internally managed portfolios, sub-portfolio allocation, asset allocation for Standard Investment Strategies (SIS) and the process for engaging external fund managers. The guidelines are regularly reviewed by the committee. PT engages an expert investment adviser to: Review the appropriateness of strategic asset allocation for all PT Standard Investment

Strategies; Provide portfolio structuring advice; Assist in selecting fund managers and monitoring performance, and provide ongoing

research into new managers; Provide quarterly reporting, ad hoc special reports, and dynamic asset allocation advice; Attend meetings of the committee and provide advice associated with PT investment

activity; and Provide other specialist advice.

Members of the committee during 2015–16 were: Debra Contala, the Public Trustee; Frankie Anderson, General Manager Customer Services; Tony Brumfield, General Manager Business and Client Financial Services; Nick Wiseman, Manager Investment Services; and Steven Gregor, Manager Client Financial Services.

PT’s investment advisers, Mercer (Marsh & McLennan Companies), also attends all meetings of the committee. A representative of DTF is provided with a copy of the formal meeting papers and is also invited to attend meetings of the committee.

Common Funds - statutory information

Section 30(3) of the Public Trustee Act 1995 requires certain information about each common fund operated by Public Trustee (PT) to be included within the Annual Report.

Audited Statement of Accounts in respect of each Common Fund: Refer to the Annual Financial Statements section of this report.

The Auditor-General’s Report upon the Statements of Account: Refer to the Annual Financial Statements section of this report.

The nature and amount of any fee that PT charges in respect of investment in the common funds:

Management Fee A management fee is charged against money invested in each common fund at the rate of one-twelfth of 1.025% (inc. of GST) of the value of the fund as at the first business day of each month. Management fees attract GST at a reduced rate as there is an entitlement to claim a reduced input tax credit. Goods and Services Tax An investment in PT’s common funds is classified as an input-taxed financial supply and no GST is charged on such supplies. Simply put, investments made in common funds and investor withdrawals from those funds are not subject to GST; nor are entry fees subject to GST. If a supply is input-taxed, the supplier will not usually receive a tax credit for any GST incurred in connection with the supplier’s expenses. However, for financial supplies, the supplier is able to claim a tax credit for three quarters of the liability incurred in respect of certain expenses (this is called a reduced input tax credit). The majority of expenses incurred by PT’s common funds, including PT management fees, are eligible for the reduced input tax credit. The net impact of the GST on expenses incurred by the common funds is therefore approximately 2.5% rather than the full 10% rate. Indirect Cost Ratios (formerly Management Expense Ratio)

The total funds management costs for common funds and standard investment strategies, as represented by Indirect Cost Ratios (ICR), are shown in the following table.

Strategy ICR 2015-16 ICR 2014–15 Cash 1.08% 1.08% Capital Stable 1.27% 1.26% Balanced 1.42% 1.41% Growth 1.52% 1.52% Equities 1.67% 1.69%

Common Fund ICR 2015-16 ICR 2014–15 Cash 1.08% 1.08% Long term fixed interest 1.08% 1.08% Short term fixed interest 1.09% 1.09% Overseas fixed interest 1.35% 1.29% Australian shares 1.62% 1.67% Property 1.75% 1.62% Overseas shares 1.73% 1.72%

Entry Fees Investors pay the following fees when investing in common funds (NB: no fees are charged on entry or exit from the cash common fund):

All other standard investment strategies;

For beneficiaries of estates administered by PT, where there is a change of ownership of the assets and when funds would otherwise be distributed:

Amounts up to $500 000 0.5% Additional amounts from $500 000 to $2 million 0.375% Additional amounts from $2 million to $5 million 0.25% Additional amounts above $5 million 0.0%

For beneficiaries of estates administered by PT where there is no change of ownership of

the assets and when funds would otherwise be distributed:

No entry fee will apply except to additional funds invested, in which case the above reduced scale for the beneficiary investors will apply.

For all other investors:

Amounts up to $500 000

1.0%

Additional amounts from $500 000 to $2 million 0.75% Additional amounts from $2 million to $5 million 0.5% Additional amounts above $5 million 0.0%

The above fees will also apply to distributed income and realised capital gains when they are reinvested in a strategy other than cash. No exit fees are charged. No switching fees will be charged except when moving monies from the cash investment strategy to another strategy. The entry fees as disclosed above will then apply.

Deposits PT does not accept cash deposits. Investments in investment strategies may be made either by cheque, direct credit or by transfer of funds from an existing estate being administered by PT. Identification When establishing an investment account with PT, customers will be required to provide satisfactory proof of identity. A PT contact officer will explain identification requirements.

The extent to which a capital sum invested may be reduced to defray losses from investment of a common fund: Realised or unrealised losses of a capital nature of an investment of a common fund shall be received or borne by investors, in proportion to the capital sums invested in the fund.

Rights of an investor in a common fund to withdraw all or part of a person’s investment in the fund: Investors may withdraw all or part of their investment in a fund at any time. Part withdrawals must be in amounts of $1 000 or greater, or the balance of the funds being managed, if the amount to be withdrawn reduces the remaining balance to less than $5 000 for beneficiary investors or $20 000 for other investors. All withdrawal requests must be made in writing.

Cash Common Fund Proceeds of withdrawals from the cash common fund of amounts less than $1 million will be available on the next business day (subject to the request being received by 12pm). Proceeds of withdrawals of amounts greater than $1 million may not be available for up to thirty business days. Other Investment Strategies Proceeds of withdrawals from investment strategies, other than the cash investment strategy fund, will not be available until 15 business days after the next exit day (currently the first day of each month). Proceeds of withdrawals of amounts greater than $1 million from these investment strategies may not be available until the thirtieth business day after the next exit day.

Terms governing distribution of income and profit or loss of a capital nature attributable to each investment in a common fund: The net income and realised capital gains of each fund are calculated to 30 June and 31 December and will be distributed to the investor in July and January of each year, unless the investor has given instructions to reinvest the money.

Classes of investment in which common funds may invest: Section 29 of the Public Trustee Act 1995 (the Act) requires PT to determine the classes of investments in which a common fund may be invested, and provides for these classes to be varied from time to time. The Act does not define classes of investment.

Determination of the classes of investment in which PT common funds may invest:

Cash Common Fund The permitted classes of investment are:

a. Cash b. Australian Fixed Interest

Qualifications on these investment classes:

i. All investments shall be denominated in Australian dollars. ii. Fixed rate securities shall not exceed three years to maturity. iii. Floating rate securities shall not exceed 10 years to maturity.

The following class of investment is explicitly excluded:

Derivatives. The fund may invest in collective investment schemes operated by organisations approved by the relevant government agencies, provided that the rules of the collective investment schemes restrict the schemes’ investments to the permitted classes of investment of the common fund. Short-term Fixed Interest Common Fund The permitted classes of investment are:

a. Cash b. Australian Fixed Interest


i. All investments shall be denominated in Australian dollars. The fund’s liquidity requirements will be managed by an investment in the Cash Common Fund.

ii. Fixed rate securities shall not exceed five years to maturity. iii. Floating rate securities shall not exceed 10 years to maturity.

Security lending arrangements in relation to authorised investments are permitted. The following class of investment is explicitly excluded:

Derivatives. The fund may invest in collective investment schemes operated by organisations approved by the relevant government agencies, provided that the rules of the collective investment schemes restrict the schemes' investments to the permitted classes of investment of the common fund. Long-term Fixed Interest Common Fund The permitted classes of investment are:

a. Cash b. Australian Fixed Interest c. Inflation-linked Securities


i. All investments shall be denominated in Australian dollars. ii. The fund's liquidity requirements will be met by investment in the cash common fund. iii. Fixed rate securities and inflation-linked securities shall not exceed 15 years and 25

years to maturity, respectively. iv. Inflation-linked securities shall be restricted to consumer inflation or average weekly

earnings-linked securities issued by the Commonwealth Government, State Governments or the Government of the Northern Territory, and securities issued by other parties where the payments to holders of the securities are guaranteed by these governments.

v. Security lending arrangements in relation to authorised investments are permitted. The following class of investment is explicitly excluded:

Derivatives. The fund may invest in collective investment schemes operated by organisations approved by the relevant government agencies, provided that the rules or the collective investment schemes restrict the schemes' investments to the permitted classes of investment of the common fund. Australian Shares Common Fund The classes of investment are:

a. Cash b. Australian equities c. Derivatives


i. Fund liquidity requirements shall be met by investment in the cash common fund. ii. Investments in Australian Equities shall be limited to securities of companies and

trusts listed on the Australian Stock Exchange, and to unlisted securities in companies and trusts where the intention is for these securities to be listed within six months of investment.

iii. Small capitalisation companies, defined as those outside the Top 100 Sector of the Australian Stock Exchange's All Ordinaries Index, shall not exceed 20% of the fund's assets.

iv. Underwriting is permitted only where PT has made a firm subscription to a new issue and the amount underwritten does not exceed the subscription amount.

v. Underwriting as an investment instrument is prohibited. vi. Security lending arrangements in relation to authorised investments is permitted. vii. Investments in financial derivatives specifically relating to the investments of the fund

are permitted for the purpose of: investment of funds; or hedging or otherwise managing the risk of the fund.

The fund may invest in collective investment schemes operated by organisations approved by the relevant government agencies, provided that the rules of the collective investment schemes restrict the schemes' investments to the permitted classes of investment of the common fund. Property Common Fund The classes of investment are:

a. Cash b. Property c. Infrastructure


i. Fund liquidity requirements shall be met by investment in the cash common fund. ii. Investments in property comprise securities of companies and trusts that are either

listed or unlisted. iii. Investments in listed and unlisted infrastructure trusts are permitted in the fund. iv. Underwriting is permitted only where PT has made a firm subscription to a new issue

and the amount underwritten does not exceed the subscription amount. v. Security lending arrangements in relation to authorised investments are permitted. vi. Investments in financial derivatives specifically relating to the investments of the fund

are permitted for the purpose of: investment of funds; or hedging or otherwise managing the risk of the fund.

The fund may invest in collective investment schemes operated by organisations approved by the relevant government agencies, provided that the rules of the collective investment schemes restrict the schemes' investments to the permitted classes of investment of the common fund. Overseas Shares Common Fund The classes of investment are:

a. Cash b. International Equities c. Derivatives.

Qualifications on these investment classes: i. Fund liquidity requirements shall be met by investment in the cash common fund. ii. Cash, where held other than by investment in the cash common fund, shall be held as

bank deposits, bank-guaranteed securities or short-term sovereign debt instruments. iii. Trading in inter-bank or over-the-counter markets shall occur only in those markets

which have been approved by the relevant government agencies of the country in which the market is conducted.

iv. Investments in collective investment schemes, the primary mandates of which are the holdings of smaller companies and emerging markets securities, shall not exceed 25% and 15% of the assets of this common fund, respectively.

v. Underwriting is permitted only where PT (either directly or via an appointed custodian) has made a firm subscription to a new issue and the amount underwritten does not exceed the subscription amount.

vi. Security lending arrangements in relation to authorised investments are permitted. The fund may invest in collective investment schemes operated by organisations approved by the relevant government agencies, provided that the rules of the collective investment schemes restrict the schemes' investments to the permitted classes of investment of the common fund.

Overseas Fixed Interest Common Fund The permitted classes of investment are:

a. Cash b. International Fixed Interest and inflation linked securities c. Derivatives


i. The fund's liquidity requirements shall be met by investment in the cash common

ii. Cash, where held other than by investment in the cash common fund, shall be held as bank deposits, bank-guaranteed securities or short-term sovereign debt instruments.

iii. All fixed income securities must be rated by recognised rating agencies and at least 90% of the fund shall comprise investment-grade securities.

iv. Investments in financial derivatives specifically relating to the investments of the fund are permitted for the purpose of:

investment of funds; or hedging or otherwise managing the risk of the fund.

The fund may invest in collective investment schemes operated by organisations approved by the relevant government agencies, provided that the rules of the collective investment schemes restrict the schemes' investments to the permitted classes of investment of the common fund.

Workforce – human resources data

Number of executives by status in current position, gender and classification

Cla

ss

ific

ati

on

Ongoing Term Tenured

Term Untenured

Other (Inc. Casual)

Total M

ale

Fe

ma

le

Oth

er

Ma

le

Fe

ma

le

Oth

er

Ma

le

Fe

ma

le

Oth

er

Ma

le

Fe

ma

le

Oth

er

Ma

le

% o

f to

tal

Ex

ec

s

Fe

ma

le

% o

f to

tal

Ex

ec

s

Oth

er

% o

f to

tal

Ex

ec

s

To

tal

SAES1 0 0 0 0 0 0 1 1 0 0 0 0 1 33 1 33 0 0 2

SAES2 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1 33 0 0 1

Total 0 0 0 0 0 0 1 2 0 0 0 0 1 33 2 67 0 0 3

Average days leave per full-time equivalent employee

Leave Type 2015–16 2014–15 2013–14 2012–13 2011–12

Sick Leave 10.5 10.5 8.7 9.1 10.5

Family Carer’s Leave 1.1 1.0 1.0 0.9 1.1

Miscellaneous Special Leave 0.7 0.4 0.7 0.5 0.5

Total number of employees with disabilities (according to Commonwealth Disability Discrimination Act definition)

Male Female Other Total % of Agency

3 3 0 6 3.4

Types of disability (where specified)

Disability Male Female Other Total % of

Agency

Disability requiring workplace adaptation

3 3 0 6 3.4

Physical 3 3 0 6 3.4

Intellectual 0 0 0 0 0

Sensory 0 0 0 0 0

Psychological/Psychiatric 0 0 0 0 0

Documented review of individual performance management

Total*

% Reviewed within the last six months 92.7%

% Review older than six months 2.8%

% Not reviewed 4.5%

*including those staff on extended leave Note: All staff who were not on extended leave or temporary transfers underwent individual performance management reviews.

Public Trustee’s annual financial statements for the year ended 30 June 2016 appear on the following pages and include corporate and customer financial information.