nsw sporting injuries committee annual report 2011 12 · annual report 2011 / 2012 5 about us the...

NSW Sporting Injuries Committee Annual Report

2011 u12

ANNUAL REPORT 2011 / 20121

Letter to the Minister

31 October 2012

The Hon. Gregory Stephen Pearce, BA LLB MLC Minister for Finance and Services Minister for the Illawarra 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 2012.

It provides a comprehensive insight to the Committee’s performance over the 2011/12 financial year and an overview of its future direction.

Yours sincerely

Julie Newman Chief Executive Officer

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Contents

Chief Executive Officer’s report 3

About us 5

Mission statement 6

Organisational chart 6

NSW Sporting Injuries Committee 7

Our strategic performance 9

Our business 10

Our community 14

Our customers 15

Our insurance business 16

Valuation of outstanding claims liabilities 18

Our administration 20

Financial Statements 24

2011/12

ANNUAL REPORT 2011 / 2012 3

Chief Executive Officer’s report

It has been been another successful year for the Committee and our sporting stakeholders across New South Wales. Participation in sport helps to build communities through a sense of connection while participation in physical activity creates a broad range of health and wellbeing benefits for everyone. However sports injury remains a risk.

During the year, 14 new serious injury claims were notified across three sports, serving as a reminder that sports injuries are a reality in sport and of the importance of being proactive in reducing injury risks

Research and awareness

During its 34 year history, the NSW Sporting Injuries Committee has had a strong record of raising awareness of safety in sport and supporting ongoing research into sports injury prevention.

During 2011/2012 seven research projects were completed under the Sports Research and Injury Prevention Scheme. Injury studies into snow sports and surfing as well as measuring the impact of weight loaded activities on female athletes and assessing gender differences in cutting techniques are some of the areas of research.

For the first time in four years, the prestigious FE Johnson Memorial Fellowship was offered at the 2011 Sports Safety Awards. Dr David Greene from the Australian Catholic University received the award for his work in identifying injury risk in young athletes by examining bone characteristics and nutrition levels.

Our insurance schemes

Our two schemes have been steadily improved over recent years to provide greater access to benefits for the sports community. Since the Schemes began over three decades ago, more than $16 million has been paid out for sports injury compensation.

In 1979 just six sports were represented in the Sporting Injuries Insurance Scheme. Today 150 sporting organisations representing 65 sports have access to affordable sports insurance.

The NSW Sporting Injuries Insurance Scheme continues to provide player accident and injury insurance cover for both amateur and professional sportspeople, and claims worth $98,755 were finalised during 2011/12.

The Supplementary Sporting Injuries Benefits Scheme continues to provide free serious injury and death cover for school children while they are participating in school-authorised sports and paid out a total of $29,265 in claims during the year.

Transitioning of Sporting Injuries to WorkCover NSW

As at June 30, 2012 the NSW Sporting Injuries Committee was part of the former Compensation Authorities Staff Division (CASD). On 1 August 2012, CASD was abolished and replaced with the Safety, Return to Work and Support Division (SRWSD).

SRWSD was formed under the Safety Return to Work and Support Board Act 2012. The new Safety Return to Work and Support Board replaces the former boards of the:

• WorkCover Authority of NSW

• Motor Accidents Authority of NSW

• Lifetime Care and Support Authority of NSW

• Workers Compensation Insurance Fund Investment Board

The new board oversees the schemes managed by WorkCover NSW, the Motor Accidents Authority and Lifetime Care and Support Authority. The changes abolish the NSW Sporting Injuries Committee and transferred its functions to a division within WorkCover NSW.

Our Committee members

I would like to particularly commend the efforts of the committee members who have helped drive such a successful year and who will assist the transitional phase to the new NSW Sporting Injuries Branch. I personally thank:

• Mr Peter Corcoran

• Mr Jason Hellwig

• Dr Ron Muratore

• Mr Grant Parker

• Dr Eddie Price

• Ms Sarah Stewart

More than 35 members from a diverse range of sports and health backgrounds have proudly served on the NSW Sporting Injuries Committee since its inception in 1978. I acknowledge their dedication and commitment in servicing the sports community.

The 2011/12 Annual Report will be the last published report produced by the NSW Sporting Injuries Committee.

This follows the commencement of new legislation in August 2012 that saw the consolidation of a number of Boards, councils and advisory groups in the former Compensation Authorities Staff Division into a new single governing Board.

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The Safety, Return to Work and Support Board now oversees the individual schemes previously administered by these authorities. It replaces the existing boards of the:

• WorkCover Authority of NSW

• NSW Sporting Injuries Committee

• NSW Motor Accidents Authority

• Lifetime Care and Support Authority

The changes abolish the NSW Sporting Injuries Committee and transfer its functions to WorkCover NSW. WorkCover will continue to operate and administer the schemes overseen by the former Committee.

Sport is an important part of the Australian lifestyle and the NSW Sporting Injuries will continue to make a difference in preventing injuries and promoting safety in sport.

Julie Newman

A/Chief Executive Officer

2011/12


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 insurance for serious injuries and to promote safe sport practices to the sporting community.

The NSW Sporting Injuries Committee and its operations are unique to New South Wales.

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.

• Sports Research and Injury Prevention Scheme – provides grants for research into sports injury preventative measures.

Our Corporate Governance

The NSW Sporting Injuries Committee delivers its legislative responsibilities under the Sporting Injuries Insurance Act 1978.

Statutory Functions

The Sporting Injuries Insurance Act 1978 confers on the Committee the following specific obligations and responsibilities:

(i) 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.

(ii) 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,

(iii) 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 and

(iv) the performance of such other functions as are given to it by or under the Act or any other Act. There were no legislative changes during the year to the Sporting Injuries Insurance Act 1978. The the Safety, Return to Work and Support Board Bill 2012 will commenced on 1 August 2012. This Bill replaces the Boards of the Sporting Injuries Committee, WorkCover Authority, the Motor Accidents Authority and the Lifetime Care and Support Authority with a single governing Board to oversee the schemes administered by these authorities. The changes abolish the NSW Sporting Injuries Committee and transfer its functions to a new division within WorkCover NSW. The new NSW Sporting Injuries division will continue operate and administer all of the schemes overseen by the former Committee.

Constitution

The NSW Sporting Injuries Committee is a corporation constituted under the Sporting Injuries Insurance Act 1978. It consists of seven members, a Chairman and six other members on the nomination of the Minister for Finance and Services, the Minister for Education and Training and the Minister for Sport and Recreation. Committee members are appointed by the Governor for a period of up to three years. The legislation declares that the Chief Executive Officer of the WorkCover Authority of New South Wales is the Chair of the NSW Sporting Injuries Committee.

As at 30 June 2012, WorkCover NSW and the NSW Sporting Injuries Committee were part of the Compensation Authorities Staff Division (CASD). CASD was formed as part of the NSW Government’s creation of Principal Agencies in July 2009.

Other agencies in the CASD group are:

• Dust Diseases Board

• Lifetime Care and Support Authority

• Motor Accidents Authority

• Workers Compensation Comission

These agencies report to the Chief Executive Officer, CASD, who is also the Chief Executive Officer of WorkCover NSW.

The Committee reports to the Hon. Gregory Pearce MLC, the Minister for Finance and Services.

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MINISTER FORFINANCE AND SERVICES

CHIEF EXECUTIVECOMPENSATION AUTHORITIES STAFF DIVISION

CASD SHARED SERVICESFinance, Human Resources and IT

DUSTDISEASES

BOARD

LIFETIME CAREAND SUPPORT

AUTHORITY

MOTORACCIDENTSAUTHORITY

WORKCOVERAUTHORITY

NSW SPORTINGINJURIES

COMMITTEE

WORKERS COMPENSATION

COMMISSION(staff and funding)

Compensation Authorities Division

Organisational chart

Mission statement

To reduce the personal impact of injuries in sport through the support of appropriate preventative initiatives; to reduce the financial impact of injuries in sport through the

provision of affordable, statute based serious injury insurance.

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NSW Sporting Injuries Committee

Ms Julie Newman – Acting CEO

BHSMgt, CPA Julie has been Acting Chief Executive, Compensation Authorities Staff Division since December 2011. Julie Newman is the Chief Financial Officer, Compensation Authorities Staff

Division. Julie’s broad experience in the NSW public sector spans over 40 years, including 26 years in senior management and leadership roles, in NSW Health and more recently the Compensation Authorities Staff Division. As at 30 June 2012, Julie’s roles included:

• Chair, Dust Diseases Board

• Member of Workers Compensation Insurance Fund Investment Board

Julie Newman is the Chair of the Sporting Injuries Committee under the Sporting Injuries Insurance Act 1978.

Ms Geniere Aplin

Geniere Aplin was appointed Acting Chair of the NSW Sporting Injuries Committee in August 2011 following her appointment as General Manager, Workers Compensation Insurance Division at the WorkCover Authority of NSW. Geniere is an

experienced banking and insurance executive leader who has delivered significant transformation and business redesign, performance outcomes and cultural change in customer focused environments.

Geniere Aplin has a strong background and experience in workers compensation particularly in claims management. Geniere was previously in an executive role at Suncorp in The Suncorp, GIO and Promina brands and was a former director of the WorkCover NSW Board and Chair of the Motor Accidents Authority Board. She holds a Bachelor of Laws and Masters of Business Administration (Executive).

Mr Jason Hellwig

Jason Hellwig was appointed to the Committee in January 2011. Jason is the Chief Executive Officer of the Australian Paralympic Committee (APC). Jason has extensive sporting administrative experience spanning from his role as General Manager, Northern Territory Athletics to being

appointed as National Development Manager and then General Manager at Athletics Australia.

At Athletics Australia, Jason was responsible for establishing and managing a partnership framework with state associations and key stakeholder groups as well as managing the relationship with the Australian Sports Commission and other associated commercial and government partnerships. Jason Hellwig has been serving disability sports for a number of years, as APC Director from 2002-03 and as APC Head of Sport from 2003–09. He was also the Chairperson of the International Paralympic Committee’s Sport Technical Committee, Athletics from 2008 until 2011.

Dr Ron Muratore

Dr Ron Muratore was appointed to the Committee in September 2009. 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. A prominent sports physician, Dr Muratore 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 2009. He has also lectured to community based sporting clubs, professional bodies and general practitioners on all aspects of sports injuries and injury prevention.

Dr Muratore has been an active member of Sports Medicine Australia since 1980 where he has held several Committee positions and is a Fellow of the Australasian College of Sports Physicians.

Mr Grant Parker

Grant Parker was appointed to the Committee in July 2007. Grant is the Executive Officer of the New South Wales Combined High Schools Sports Association 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 1988.

Grant Parker has been a member of a number of committees, 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 keen participant in surfing.

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Dr Edward Price

Dr Edward Price was appointed to the Committee in October 2003. Dr Price brings 25 years experience as a physician working in the field of workers compensation and rehabilitation, with an emphasis on preventative health care. Dr Price has an interest in preventive

medicine, working in health administrative advocacy focussing on interest in utilising health outcomes to promote a preventive focussed health care system.

Dr Price served on the Board of WorkCover NSW for seven years and has completed writing his third book that focuses on changing the health system, advocating for a renewed focus based on a measurable health related quality of life.

Ms Sarah Stewart

Sarah Stewart was appointed to the Committee in September 2011 as one of two nominees of the Minister for Sport and Recreation. Sarah is a talented and valued member of the Australian women’s wheelchair basketball team, the “Gliders”. She represented Australia at both the

2004 Athens and 2008 Beijing Paralympic Games and is hoping to bring home gold in the 2012 London Paralympic Games.

Sarah Stewart is also a Committee member of the Wheelchair Sports NSW Basketball Committee (2004 to present) and Women’s National Wheelchair Basketball League Advisory Committee (2007 to present). Sarah is currently a PhD candidate in Philosophy at Sydney University having won the Vice-Chancellor’s award for academic and sporting excellence in 2004.

Committee Meetings

During 2011/12, the meetings held and attendances by Committee members were:

NSW Sporting Injuries Committee

Expiry of appointment

Number eligible

to Attend

Number attended

Ms Julie Newman – Chair *

Not applicable 2 1

Ms Lisa Hunt – Chair *^

Not applicable 4 0

Ms Geniere Aplin – Acting Chair**

Not applicable 5 4

Ms Mary Hawkins – Acting Chair **

Not applicable 1 1

Mr Peter Corcoran OAM

23 June 2012 6 6

Mr Jason Hellwig^^ 7 February 2015 6 4

Dr Ron Muratore 15 September 2012

6 6

Mr Grant Parker 31 August 2013 6 5

Dr Edward Price 15 September 2012

6 6

Ms Sarah Stewart 13 September 2014

5 5

* When the Chair is unable to attend Committee meetings, the responsibility is delegated to the Acting Chair.

^ Ms Lisa Hunt’s position as Chair finished in December 2011. Ms Julie Newman became Chair in the same month given her appointment as Acting Chief Executive Officer of WorkCover NSW.

** Ms Mary Hawkins’ position as Acting Chair finished in August 2011 when she completed her appointment as Acting General Manager, Workers Compensation Insurance Division. Ms Geniere Aplin was appointed by the Minister in September 2011.

^^ Mr Jason Hellwig’s initial appointment as Committee member expired in December 2011 and he was re-appointed to the Committee in February 2012.

*** Ms Sarah Stewart was appointed to the Committee in September 2011.

Audit and Risk Committee Number eligible to

attend

Number attended

Doug Wright (Chair) 6 6

Carolyn Walsh (deputy Chair) 6 6

Robert Ingui 6 6

Cass O’Connor 6 6

Ray Petty 6 6

Sue Clarki 4 4

Lisa Huntii 4 1

Julie Newmaniii 5 5

i Sue Clark appointment ended 22 February 2012.

ii Lisa Hunt CASD Chief Executive until 2 February 2012. The CASD Chief Executive is a standing invitee of the CASD Audit and Risk Committee

iii Julie Newman attended as acting Chief Executive

2011/12


Our strategic performance

The Committee was not presented with any barriers in meeting its legislative responsibilities throughout the year. Its four primary objectives were met.

Key outcomes:

1. Provide an equitable, affordable and viable self-funded serious injury insurance scheme for New South Wales sporting organisations

• Premium rates across all sports insured by the Sporting Injuries Insurance Scheme continued to be maintained at their 2001 level to ensure sporting organisations have access to serious sporting injuries insurance with minimal financial impact to sporting participants.

• Two serious injuries claims were finalised under the Sporting Injuries Insurance Scheme with benefits totalling $98,755 (2011: $167,460)

• The Committee remains in a strong financial position with reserves of $822,000 (2011: $870,000)

2. Increase and broaden the Sporting Injuries Insurance Scheme within the New South Wales sporting community

• The Scheme covered 223,000 participants (2011: 229,000) The slight decrease can be attributed to members who use their state sports association’s comprehensive policy.

• 150 sporting organisations were insured at year end (2011: 174) a decrease due to consolidation of individual club policies to state sporting organisation governed policies under the Scheme.

• The Scheme’s fault free insurance was promoted throughout the state using electronic mail, advertising within sports specific journals, conference promotions and presentations

3. Provide a Government funded insurance scheme for students participating in organised school sporting activities and participants in approved programs of NSW Sport & Recreation

• Two serious injuries claims were finalised under the Supplementary Scheme totalling $29,265

• The Supplementary Scheme was promoted to schools with the assistance of our stakeholders including the Department of Education and Communities’ School Sports Unit and the respective Independent Schools and Catholic Schools Sports Units e-newsletters and journals as well as communications and media activities

4. Initiate, support and promote efforts to reduce the incidence of injuries resulting from sporting activities in New South Wales The Committee successfully delivered two major initiatives to raise awareness of injury prevention:

The Sports Research & Injury Prevention Scheme

• Five innovative sports injury research projects between universities and sports organsiations were shortlisted with a total grant pool of $85,000 provided

• Seven research projects were completed during the year which will shape future policies and practices to reduce injuries

The NSW Sports Safety Awards Scheme

• The 14th anniversary of the Sports Safety Awards was held highlighting outstanding achievements in developing and implementing sports safety in the community.

Future Direction

In the year ahead, the NSW Sporting Injuries Committee will transfer its functions to WorkCover NSW. NSW Sporting Injuries will continue to build upon its established mandate of providing affordable insurance and raising awareness of safety and aims to:

• increase participation in the Sporting Injuries Insurance Scheme by 2% to ensure a greater number of New South Wales sportspeople have access to fault free serious sporting injuries insurance

• continue to promote the Supplementary Sporting Injuries Benefits Scheme across all schools to ensure injured school children are compensated for serious sporting injuries

• decrease the number of claim notifications from solicitors by 25% within 3 years

• increase the number of nominations for the NSW Sports Safety Awards by 10% to encourage safe sports practices within New South Wales.

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Our business

The NSW Sporting Injuries Committee’s function is to administer and control the:

• Sporting Injuries Insurance Scheme

• Supplementary Sporting Injuries Benefits Scheme

• Sports Research and Injury Prevention Scheme

• NSW Sports Safety Awards

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 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:

(i) a significant rise in serious spinal accidents, specifically in Rugby League and Rugby Union in the late 1970’s; and

(ii) 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 Sporting Injuries Insurance Scheme was established as a result of the inquiry.

The Sporting Injuries Insurance Act 1978 was enacted by the NSW Parliament in December 1978. The NSW Sporting Injuries Committee was constituted by the same Act as the operator of the Sporting Injuries Insurance Scheme.

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:

(i) paying benefits to registered participants,

(ii) costs of the District Court associated with the determination of benefits,

(iii) investment,

(iv) providing grants for research and injury prevention projects under the Sports Research and Injury Prevention Scheme,

(v) providing awards under the NSW Sports Safety Award Scheme

(vi) meeting 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:

(i) children who are seriously injured while participating in organised school sport or athletic activities and

(ii) persons likewise injured while participating in certain programs of activity conducted or sanctioned by NSW Sport and Recreation

Where damages are awarded or a payment under an insurance contract is received, the claimant is not entitled to claim under the Supplementary Scheme. The benefits are paid from the Supplementary Sporting Injuries Fund.

The Supplementary Sporting Injuries Fund

The Supplementary Sporting Injuries Fund exists as a facility for:

(i) the payment of benefits to eligible applicants under the Supplementary Sporting Injuries Benefit Scheme and

(ii) meeting the administration costs of the Supplementary Sporting Injuries Benefit Scheme

2011 NSW Sports Safety Awards Scheme

The NSW Sports Safety Awards are a fundamental component of the Committee’s legislative responsibility to increase awareness of how to reduce the risk of sporting injuries. The only awards of their kind in Australia, the scheme recognises outstanding achievement in research, injury prevention and promotion of safe sport practices.

Each year the awards scheme allows schools and sporting clubs and associations to showcase their safety initiatives to their peers and the wider community. Since the awards began in 1998 almost 300 awards have been provided to acknowledge initiatives and research undertaken to improve safety in sport.

During 2011 more than 150 people attended the 14th annual awards where 18 awards were presented across seven categories.

Major sporting organisations, regional clubs as well as schools and universities were among the winners with gold awards being presented to two sports associations, three schools and a local club:

• Pony Club of NSW for developing a comprehensive gear and equipment check procedures to be implemented by all local clubs for evaluating riders and horses for any safety hazards or risks prior to training and competition.

• NSW Rugby League for their hard line initiative “Tough Love in League” to address violence and aggressive behaviour in junior league matches to reduce pressure on young and inexperienced referees and ensure greater safety when playing junior league.

2011/12


• Basketball NSW for implementing an awareness campaign that involved improvements in injury reporting systems, the development of a new reporting form to ensure statewide consistency in injury reporting and the distribution of safe management and head injury material.

• Valentine Eleebana Cricket Club for designing a swing gate to increase the areas of protection around cricket nets.

• Merrylands High School for their Year 8 education program to identify and manage risks in order to make safe decisions that extend beyond safe participation in sport including bike safety, beach safety and drug and alcohol awareness.

• St Paul’s Catholic College for designing a contact sports injury prevention program and encouraging 12 senior students to volunteer to learn preventative techniques.

• Holy Spirit Catholic Primary School for developing the “5 must have rules” program that simplifies the rules of sports in the school curriculum to only 5 rules to encourage safe participation at school.

The prestigious FE Johnson Memorial Fellowship was awarded to Dr David Greene from the Australian Catholic University. Dr Greene reviewed more than 500 bone scans to identify markers of injury risk in young athletes by examining tibial and radial bone characteristics and nutrition levels.

During the Awards ceremony Olympic Gymnast Naazmi Johnston, Paralympian Liesel Tesch, former NRL Referee Steve Clark and NSW Swifts Assistant Coach Robert Wright participated in a panel discussion on key issues in sports injury management.

The NSW Sporting Injuries Committee also acknowledges the awards primary supporter, Peter Wynn Score, for its continued support for the awards and commitment to sports safety. The innovation shown by our stakeholders through these awards over the past 14 years has improved sports safety making sport more accessible for our community.

The Sports Research and Injury Prevention Scheme

The Sports Research and Injury Prevention Scheme was established in 1991 to provide funding for research into the prevention and reduction of serious injuries in sport.

Since the Scheme’s inception, the Committee has provided grants totalling $1,982,464 (excluding GST) to further research into sports injury prevention with more than 80 research projects completed over the past two decades.

Under the 2012 Scheme allocation, the Committee shortlisted $84,239 (excluding GST) to the following innovative research projects:

Category Award Winner Winning Program

FE Johnson Memorial Fellowship

Gold Award Dr David Greene, Australian Catholic University

Musculoskeletal health in active young populations

Outstanding Achievement in Applied Research by a Research Team

Gold Award Youthsafe and Basketball NSW Review of injury records and reporting

Silver Award University of Wollongong, Biomechanics Research Laboratory

Breast Elevation and compression decrease exercise-induced breast discomfort

Outstanding Implementation and Adoption of Safe Sport Practices – State

Gold Award Pony Club of NSW Gear check safety policy

Silver Award NSW Rugby League Tough love in league

Bronze Award Dragon Boats NSW Sweep accreditation

Outstanding Safe Sport Practices – Regional / Club “Peter Wynn’s Score Award”

Gold Award St Ives YMCA Girls levels gymnastics program

Silver Award Valentine Eleebana Cricket Club Cricket net safety swing gates

Bronze Award NSW Rugby League & NSW Sport Recreation

Spectator anger education program

Outstanding Implementation and Adoption of Safe Sport Practices – School

Gold Award St Paul’s Catholic College Prepare and prevention

Silver Award St Joseph’s High School Aberdeen Sun, fun and safety awareness day and bronze medallion program

Bronze Award St Joseph’s Catholic School Refereeing certificate program

Outstanding Education and Promotion of Safe Sport Practices - State

Gold Award Basketball NSW Sports safety campaign

Silver Award Royal Life Saving Society (NSW) Aquatic safety training academy

Bronze Award Football NSW Hot weather policy

Outstanding Education and Promotion of Safe Sport Practices – School

Gold Award Merrylands High School Keeping myself safe

Silver Award St Michael’s Catholic Primary School Keep cool, play by the rules

Bronze Award Holy Spirit Catholic Primary School 5 must have rules

2011 NSW Sports Safety Awards winners

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$30,418 University of Western Sydney Hamstring injury prevention – before or after training?

The project team will undertake research into both the acute and chronic effects of timing of a Nordic hamstring exercise in football players. The hamstring strain prevention exercise will be performed before and after normal training sessions to observe responses in muscle architecture and hamstring responses.

Football NSW support the project which may result in minimising the risk of hamstring strain in football players during and after participation and be used to develop injury prevention strategies in the future.

$28,440 University of Canberra Towards a Sport Concussion Assessment Tool 3 in snow sports: can the balance measurement component of the SCAT2 be improved?

Researchers aim to enhance assessment protocols for monitoring the cumulative effects of repeated head injuries. The study will evaluate the current Sport Concussion Assessment Tool 2 (SCAT 2) in a snowsport athlete group. This will help determine the effectiveness of improving the existing protocol using accelerometer smart phone technology during the ‘balance assessment’ component of the SCAT 2 test.

The results will be used to design an enhanced protocol for assessment of changes in motor performance post concussion injury (Sports Concussion Assessment Tool 3).

The project will be conducted in collaboration with the NSW Institute of Sport (Winter Sports Program).

$10,972 University of Sydney and Country Rugby League of NSW - Incidence of injury in the tackle zone focusing on youth aged participants

The pilot project will examine the type of injuries sustained in junior rugby league games by focussing on the relationship between and techniques used by players in the ‘tackle zone’ and injuries sustained.

Findings will be used to refine the coach education module to reduce injury risks in tackles with recommendations provided to Country Rugby League of NSW and the Australian Rugby League Commission.

$10,602 University of Sydney - Ankle instability in netballers

Researchers will monitor injuries among players from the Sydney University Netball Club, to better understand the common problem of ankle instability in netballers.

The team will undertake functional performance testing as well as analysis of prospective and retrospective injury data analysis to identify mechanisms for ankle instability to help develop targeted injury prevention interventions.

$3,806 University of Newcastle Ourimbah - The effects of ankle taping on muscle activation and performance during planned and reactive agility tests for basketball players

The project team will investigate the effects of ankle taping on muscle activation during reactive cutting movements.

A series of planned and reactive agility tests will be performed on basketball players from the Central Coast Crusaders Basketball Team to develop quantitative data to demonstrate the benefits of ankle strapping.

Research projects completed

A total of six research projects were completed during the past financial year.

Australian Catholic University

Lower limb injury risk factor identification in sport. Can footwear be used as an early detection instrument to ameliorate foot-leg injury in sport?

The University received $20,000 in 2006 to determine foot-leg speculative risk factors to test the theory that a high proportion of lower limb injuries are associated with running based team sports.

The research aimed to assess an area of injury risk associated with lower limb injury in professional football codes by validating a lower limb comfort index.

The study confirmed that a tailored footwear program which consisted of player education, prescription of footwear, monitoring of footwear and footwear modification, significantly reduced lower limb injury and improved comfort levels.

The research concluded that although variables including surface conditions, load forces, lower limb biomechanics make it difficult make a generalised recomendation, a coordinated footwear program can be beneficial in the injury management paradigm.

Ultimately optimal footwear selection based upon player comfort guidelines can be developed to compliment injury prevention programs.

Australian Catholic University

Tracking health and performance of talented female adolescent athletes

The university was granted $19,800 in 2006 for a three year study to examine musculoskeletal stiffness in adolescent females to determine if there is a link between increased injury risk and loading (ground contact) in high impact sports.

Teenagers participating in gymnastics, track and field, water polo and also a control group with no sports participants took part in the study.

The study found that greater bone density, bone area and bone strength occurred at the lower leg in weight-loading sports such as gymnastics and track and field. Data also indicated that the control group did not have as greater bone strength as those participating in weight loading activity.

The research determined that bones in the lower leg and lower arm may be positively influenced by repetitive, high impact loads associated with gymnastics and track and field. The results support the bone benefits of weight-loaded activities compared with weight supported and less active controls.

2011/12


University of Wollongong

Preventing ankle injuries in sport: How do musculotendinous properties of the calf muscles affect drop landing performance and are these properties moderated by training?

The University received a $22,471 grant to determine how flexibility and strength characteristics of the calf muscle-tendon unit affect ankle mechanics and calf muscle tendon unit loading during landings.

Athletes involved in landings can incur ground reaction forces up to 18 times their body weight and much of this force is transmitted to the proximal lower limb joints via the ankle and the Achilles tendon.

The study found those with a low standing dorsiflexion or a high calf muscle tendon unit stiffness used their calf muscle tendon unit in a more lengthened range at critical loading events throughout the landings.

The findings of this study also provide direction for screening methods and training interventions that may help provide coaches and medical personnel with more appropriate strategies to prevent soft tissue calf muscle tendon unit injuries during landings.

University of Canberra

Investigating risk factors in paediatric snowsport injuries: Characterisation of head impacts

To better understand the incidence and severity of paediatric snow sport head impacts, this project received $31,790 in 2009 to apply two technologies that were originally developed for application in team-based sports such as football.

The Head Impact Telemetry system and the GPSports Spi Elite System which uses a GPS logging system to track player movements and workloads, as well as accelerometers to measure body impacts, were used in the study.

School students involved in resort based, lift-accessed snow sport programs in the Snowy Mountains during 2009-11 participated in the study by wearing a helmet and GPS during their normal snow sport activity Data was collected from 124 participants over 162 sessions over 709 hours recording 3,238.9km of travel.

Key insights drawn from this research are that:

• Paediatric snowsport head impacts are very rare, and if they do occur they are generally of low magnitude

• Post event recall was not a good indicator of having experienced a head impact

• First time participants should be encouraged to use protective equipment including helmets while serious consideration should be given to the standard design for speed testing of helmet protective devises to reflect actual snowsport behaviours.

The study was expanded in August 2010 to cover another snow season.

Southern Cross University

Investigation of surf participation and injury prevalence in Australian surfers: A self reported retrospective analysis

The findings of this project that commenced in 2010 for $16,415 indicate that there is a clear need to provide surfers with education and information about the need for adequate fluid intake, warm ups and appropriate sun protection before entering the water.

The research involved surveying almost 700 recreational surfers, which found that one in three are likely to experience one or more surf related injuries as a result of their participation in the sport in any given 12-month period.

Injuries were found to occur most frequently in the knees, ankles, lower back and shoulders, while dehydration and excessive sun exposure resulting in skin damage were also common.

The research was undertaken by Southern Cross University’s School of Health and Human Sciences with the support of Surfing Australia.

University of Canberra

The Perisher Brace Study: An investigation into the effectiveness of wrist guard use for upper limb injury prevention in snowsports

The University received $16,560 in 2010 for its Perisher Brace Study that examined the effectiveness of wrist guards in preventing upper limb injuries in snow sports.

Patients treated at Perisher Valley Medical Centre for upper limb injuries during a period of four weeks in the 2010 peak snow season, took part in the study, designed to determine any association between wrist and upper limb injuries, and the use, type and design of wrist guards.

The research also challenged previous suggestions that wrist guards, while they may protect the wrist, may actually contribute to upper arm fractures and other injuries. A lack of clarity regarding the benefit perceived discomfort of wrist guards in snow sports was a major finding of the study, along with evidence that there is a higher injury incidence rate among tourists.

As part of the study, data was collected from 450 questionnaires which indicated that during that period there were 140 wrist injuries. Snowboarders comprised of 65 per cent of respondents, with those aged 16 to 20 years the most common group to be injured. Skiing and other injuries made up the remaining 35 per cent.

Previous studies indicate that snowboarders wear the least protective equipment. The study found that while the use of protective equipment in snow sports is increasing, it still lags substantially behind sports such as cycling.

2011/12

14

Our community

As well as engaging with the community through initiatives such as the Sports Safety Awards, workshops and the media, the Committee provides corporate sponsorship for events with key sporting stakeholders.

During 2011/12 the Committee sponsored two events totalling $10,000 to extend our support of NSW sporting organisations and encourage safety within the sports community.

The Committee also provides advice and assistance to sporting clubs and associations during the year and has held workshops and seminars on the Committee’s services and new work health and safety laws.

Corporate sponsorships

NSW Coach of the Year $7,500

The NSW Sporting Injuries Committee was proud to sponsor the Coach of the Year category at the annual NSW Sports Federation awards for the third consecutive year.

Swimming coach Brant Best took out the prestigious award for NSW Coach of the year. Best was recognised for coaching swimmer James Magnussen to become the first 100m freestyle world champion during 2011.

Supporting women in sport $2,500

For an eighth consecutive year, the Committee was a proud sponsor of Womensport and Recreation NSW (WRNSW)

WRNSW represents more than a million women and schoolgirl athletes and the Committee’s sponsorship has helped the organisation achieve its mission ‘To facilitate full and safe participation, access and equity for females through sport and active recreation’.

WRNSW undertakes major inspirational activities to encourage sports participation such as its ‘Schoolgirls – Get Active’ events, where school students meet their female sports idol, eat a healthy meal and actively participate in sporting activities with their heroine.

WRNSW held a successful School Girls get active event in Griffith in 2011 with more than150 students attending with their sporting heroines. Eight local schools also benefited from sports clinics as part of the event.

Seminars and workshops

New work health and safety laws began in January that meant volunteers may now be regarded as ‘workers’. Many sporting organisations rely on volunteers to operate and during the year, Committee worked with its stakeholders to assist them understand the new laws. Throughout the year, the Committee assisted many sporting organisations who rely on volunteers to operate to understand the new legislation.

NSW Sporting Injuries Committee staff provided advice and assistance to sporting groups regarding their impact at a club level, including presentations to the NSW Sports Federation and the Country Rugby League.

2011/12


Our customers

There is a diverse range of customers within the NSW sporting community that includes local clubs and state-wide associations, sporting organisations and schools as well as coaches and players.

The Committee worked hard during 2011/12 to develop positive relationships with members of the sports and injury research community. This was achieved through ongoing communications activities and events to assist our customers with their insurance needs and raise awareness of injury prevention.

All schools within NSW receive automatic cover under the Supplementary Sporting Injuries Benefits Scheme.

Sporting organisations are required to apply to the Committee for cover under the Sporting Injuries Insurance Scheme.

Sporting Injuries Insurance Scheme membership

Just six sports were represented in the Sporting Injuries Insurance Scheme when it was first established in 1979 including polo, cricket, football and rugby league. 33 years on, 223,000 participants from 150 sporting organisations currently participate in the Scheme representing 65 sports.

Scheme membership during 2011/12 decreased by 2.6% to 223,000 members. This can be attributed to an increase in the number of members who have opted to rely on their state sports association’s comprehensive policy only.

Rugby League continues to remain the largest sport in this scheme with a total of 106,206 participants or 48 per cent of total membership. Football was the second largest participant sport with 83,534 members or 37 per cent of total participants covered.

Distribution of Sporting Injuries Insurance Scheme membership

Section 5A insurance exemption organisations

During 2011/12, there were four member sporting organisations who successfully applied for Section 5A insurance exemptions for their private insurance policies (2011: 3 member organisations)

• NSW Basketball

• NSW Cricket

• NSW Rugby Union

• Australian Rugby Union

The insurance exemption is approved on an annual basis where it is determined by the Committee that the private insurance policy of the sporting organisation has 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 approximately 137,000 (2011 – 135,000) participants were covered under the approved private policies permitted by the Section 5A insurance exemption.

Participation in private insurance schemes with Section 5A insurance exemptions

Organisation Adults Non-Adults

Total

NSW Basketball 21,402 26,776 48,178

NSW Cricket 38,370 37,489 75,859

NSW Rugby Union 13,200 0 13,200

Australian Rugby Union 118 0 118

Total 73,090 64,265 137,335

Supplementary Sporting Injuries Benefits Scheme participants

This scheme provides free serious injury cover to all public, catholic and independent school children in NSW. 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 NSW Sport and Recreation programs.

Other6%

Rugbyleague48%

Football(soccer)

37%

Track and field2%

Dragon boat racing2%

Shooting2%

Fishing3%

2011/12

16

Our insurance business

The Committee’s two NSW Government Schemes provide fault free cover for serious injuries that may occur while participating in sport and since their inception more than $16 million has been paid out for serious sports injuries.

Since 1978, the Sporting Injuries Insurance Scheme (sporting organisations) has paid out $14,674,958, representing an average of $31,627 per claim.

From the introduction of the Supplementary Sporting Injuries Benefits Scheme (schools) in 1984, $1,654,445 has been paid out, representing an average of $28,041 per claim.

The insurance provided from these schemes does not consider negligence or pre-existing conditions during claims assessment, providing an invaluable insurance service to the NSW community.

Injury Notification

Injuries are notified by sporting organisations or schools directly to the Committee and are processed in accordance with the Sporting Injuries Insurance Act 1978.

Claimants do not require legal representation in order to claim under these Schemes.

During 2011/12 nine claims were notified via solicitors. The Committee strongly encourages injured participants to notify the Committee directly to ensure the full amount of any benefit payable is received by the claimant.

All claims are treated in accordance with the Act and legal expenses are not reimbursed.

Injury Management

Injuries are monitored by the Committee during treatment and rehabilitation. The time taken to finalise a claim depends on the type and severity of the injury. Before a claim can be finalised:

• all treatment must be completed

• the injury must be stabilised

• the claimant must be assessed by an independent medical panel

Severe claims with definite outcomes such as paraplegia are usually considered by the Committee without the need for medical panel assessment. Claims for death are reviewed and considered only by the Committee.

Claims And Benefits

The Committee was pleased to finalise nine claims and pay the legislated compensation in a timely manner. All benefits are paid in accordance with the Table of Benefits within the Sporting Injuries Insurance Act 1978.

Four benefits totalling $128,380 were paid by the NSW Sporting Injuries Committee across the two insurance schemes with all the claims being incurred and notified in prior years.

Two benefits were paid under the Sporting Injuries Insurance Scheme totalling $98,755. Tragically one of these benefits was for death, while the other was paid for permanent loss of use of the leg.

Two benefits were paid under the Supplementary Sporting Injuries Benefits Scheme totalling $29,625, an average of $14,813 per claim. Both benefits were paid for permanent loss of use of the leg.

Closed claims

Five claims were closed during 2011/12. Two claims were closed after they were deemed not compensable following an independent medical panel assessment that concluded the injuries did not meet the minimum percentage disability threshold required by the Act.

A further two claims were closed as the claimants were seeking reimbursement of medical expenses which are not compensable under the Act. One claim was closed due to lost contact. Eight of the nine claims closed were represented by solicitors.

Death benefit

There was one benefit paid for death totalling $84,930 in 2011/12.

For participants over the age of 18 years of age, a death benefit of $70,680 is paid with $2,850 for each dependent child. For junior participants, funeral expenses are reimbursed to a maximum of $9,000.

A death in sport is always unexpected and in some cases, may relate to an unknown pre-existing condition, which the Committee does not take into consideration in determining the benefit.

2011/12


Current Case Load

At the year end, the Committee had an outstanding case load of 21 claims for injuries including leg, arm, loss of mental capacity, smell and sight, death and quadriplegia

• Seven claims were pending the Committee’s consideration to finalise.

• Four claims were waiting for approval of benefit after independent medical panel assessment.

• Two claims were waiting for consideration after medical referee assessment for permanent loss of mental capacity

• One claim was waiting for further information regarding eligibility

Sporting Injuries Insurance Scheme

Outstanding Scheme caseload as at 1 July 2011 12

Number of sports involved in the outstanding scheme caseload

4

New Scheme cases notified during the year 12

Number of sports involved in these cases 3

Scheme cases closed during the year (including paid) 6

Outstanding Scheme caseload as at 30 June 2012 18


5

Supplementary Sporting Injuries Benefit Scheme

Outstanding Scheme caseload as at 1 July 2011 4


2



Number of sports involved in these cases 3

Scheme cases closed during the year (including paid) 3

Outstanding Scheme caseload as at 30 June 2012 3


3

2011/12

18

Valuation of outstanding claims liabilitiesThe Outstanding Claims Liabilities are measured as the central estimate of the:

• present value of expected future payments for claims incurred but not reported

• claims incurred but not enough reported

• claims administrative expense loading

Estimated liability of the outstanding caseload under consideration as at 30 June 2012:

• Sporting injuries insurance scheme $1,966,000 (2011 – $1,616,000)

• Supplementary sporting injuries benefits scheme $651,000 (2011 – $359,000)

The total valuation of Outstanding Claims Liabilities of $2,617,000 is slightly above the previous year due to a greater number of cases outstanding at year end.

Outstanding claims liabilities*

Year Outstanding claims liabilities*

2003 1,526,000

2004 1,577,000

2005 2,247,000

2006 2,508,000

2007 2,412,000

2008 2,364,000

2009 2,249,000

2010 1,944,000

2011 1,974,000

2012 2,617,000

* Since 2006, the Outstanding Claims Liability of the Sporting Injuries Insurance Scheme includes an additional risk margin to allow for the inherent uncertainty in the central estimate as required under the AEIFRS AASB 1023: General Insurance Contracts.

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 2011/12 financial year. No applications have been received since the financial year of 2006/07.

Sporting injuries insurance scheme

Total benefits paid by sport since the inception of the Scheme in 1979.

Sport 2011/12 2010/11 1979-2012

No. Benefits Paid $

No. Benefits Paid $

No. Benefits Paid $

Australian Football

17 251,151

Cricket ^ 26 167,232

Football (Soccer)

1 9,000 29 841,688

Motor Cycling 22 564,565

Rugby League ^^^

2 98,755 1 87,780 277 9,068,166

Rugby Union ^^ 40 1,836,620

Other sports combined ^^^^

1 70,680 53 1,945,536

Totals 2 98,755 3 167,460 464 14,674,958

^ 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.

^^^ Rugby League is the biggest sport insured by the Sporting Injuries Insurance Scheme, representing 48 per cent of the Scheme’s participants.

^^^^ Due to the relative small number of claims per individual sport all other sports have been counted together as one group.

Supplementary Sporting Injuries Benefits Scheme

Total benefits paid by sport since the inception of the Supplementary Scheme in 1984.

Sport 2011/12 2010/11 1984 - 2012

No. Benefits Paid $

No. Benefits Paid $

No. Benefits Paid $

Athletics 5 67,174

Rugby Union 1 9,000 9 413,520

Rugby League 2 29,625 12 271,968

Other sports combined ^

2 177,617 33 13,967,724

Totals 2 29,625 3 186,617 59 1,654,445

^ Due to the small number of claimants per individual sport, sports with less than 5 claimants have been combined into one group.

2011/12


Benefits Table

Table A

Part 1 – Injuries Related to Arms

Permanent loss of not less than the percentage, prescribed by the regulations, of the use of – $

(a) either arm or the greater part of an arm 43,265

(b) lower part of either arm 37,050

(c) either hand or 4 fingers and thumb of either hand

37,050

(d) thumb 16,075

(e) index finger 10,715

(f) middle, ring or little finger 5,645

Part 2 – Injuries Related to Legs

Permanent loss of not less than the percentage, prescribed by the regulations, of the use of –

(a) either leg or the greater part of a leg 39,500

(b) lower part of either leg 33,970

(c) foot 32,945

(d) great toe 10,715

Part 3 – Injuries Related to Sight

1. Permanent and total loss of sight of both eyes (or of one eye, if it was the only sighted eye)

55,575

2. Permanent loss of not less than the percentage, prescribed by the regulations, 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 the percentage, prescribed by the regulations, of –

(a) hearing in both ears 33,970

(b) power of speech 33,970

2. Permanent loss of sighted eye 12,310

3. Permanent and total loss of the use of –

(a) both kidneys (or of one kidney, if it was the only functioning kidney)

58,710

(b) one kidney, if it was not the only functioning kidney

7,070

(c) spleen 7,070

Table B

Part 1 – Injuries Related to Cognition

Permanent loss of -

(a) mental capacity 171,000

(b) sense of smell 9,290

(c) sense of taste 9,290

Part 2 – Physical Injuries

Permanent loss of -

(a) all sexual organs or part thereof 27,530

(b) sightless eye 12,310

2011/12

20

Our administration

Office services

The NSW Sporting Injuries Committee utilises the resources and facilities of the WorkCover Authority of New South Wales (WorkCover NSW) and at 30, June 2012 was 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 uses 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 primary method of disseminating information to NSW registered participants, sporting organisations, schools, research institutions and other major stakeholders.

Communications material including media releases, brochures and publications are also published on the website. In the first half of 2012, the Committee established a social media presence on Facebook and Twitter. Social media will be used to distribute timely and accurate information about sports safety and engage our stakeholders in discussion.

All of the Committee’s forms and publications are available to be downloaded from the site www.sportinginjuries.nsw.gov.au. The website is regularly updated to ensure accuracy and currency.

The majority of the Secretariat’s correspondence is via email and regular email communication is made with sporting organisations, participants, schools, research institutions and other stakeholders.

Guarantee of service

The Committee’s Secretariat prides itself on the excellent personal service provided to its clients and members of the public.

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.

No complaints were received during the year.

Government Information (Public Access) Act 2009

Under the Government Information (Public Access) Act 2009 (NSW) there are four ways in which Compensation Authority Staff Division (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 13 10 50 or email [email protected].

The Committee received one application under the Act during the year ended 30 June, 2012 (Nil in 2011).

Privacy and personal information protection

The Privacy and Personal Information Protection Act 1998 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 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 2010/11.

Human resources

The NSW Sporting Injuries Committee’s Secretariat comprises four officers working under the direction of the Executive Officer.

All staff are employed through the Compensation Authority Staff Division (CASD) and are on secondment to the Committee.

Committee employee categories2010 2011 2012

Clerk Grade 11/12 1 1 1



TOTAL 4 4 4

2011/12


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 other statutory body.

Multicultural Services Program

The NSW Sporting Injuries Committee is committed to the principles of multiculturalism.

Engaging WorkCover NSW 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 Opportunities

The Committee’s Equal Employment Opportunity (EEO) principles and practices are consistent with WorkCover NSW’s as the Committee utilises WorkCover’s human resources services and complies with its policies. In 2011/12, WorkCover NSW continued to implement the 2008-2011 Social Justice Plan and Policy Statement initiatives and promoted EEO by:

• Aligning the organisation’s EEO Management Plan with WorkCover’s Corporate Plan

• Enhancing and promoting the EEO workforce profile data collection tool to increase participation and enhance reporting

• Incorporating EEO criteria into the development of templates and guidelines for policy review.

Please refer to WorkCover NSW’s annual report at workcover.nsw.gov.au for its report on EEO achievements, strategies and its Disability Action Plan.

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 2012.

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 (CASD). The risk management plan relies upon the CASD’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 is endorsed by the Committee and submitted to the CASD Audit and Risk Committee for review and subsequent endorsement. The plan has increased risk awareness and created a positive risk management culture across the NSW Sporting Injuries Committee.

Internal Audit Unit

The Compensation Authorities Staffing Division (CASD) Internal Audit Unit (IAU) is an independent review function that manages, through an outsourced service provider, an annual plan of risk-based audits across all the CASD Agencies including the Sporting Injuries Committee (SIC). In 2011/12, seven reviews were completed CASD-wide (including SIC). In total, 52 audit recommendations were made to strengthen the organisation’s internal controls.

The following internal audit reviews were completed in 2011/12:

• CASD Accounts Payable

• CASD Accounts Receivable

• CASD Flex Leave

• CASD Payroll

• CASD Procurement Management*

• CASD Recruitment Management Process*

*Internal audit reviews from the 2010/11 audit plan completed during the 2011/12 year.

In addition to the above, the following internal audit review, from the 2011/12 audit plan, was in progress as at 30 June 2012:

• CASD Occupational Health & Safety Management Process; and Workers Compensation Management Process

2011/12

22

The IAU also undertakes a range of fraud and corruption prevention activities. In 2011/12, CASD-wide policies for Fraud and Corruption Control and Internal Reporting were launched. IAU staff act as Public Interest Disclosure Officers to whom staff can report allegations of corrupt conduct within the Public Interest Disclosure Act 1994. IAU also manages investigations into corrupt conduct liaising, where appropriate, with the Independent Commission Against Corruption (ICAC).

The Director Corporate Governance acts as the Chief Audit Executive and reports directly to the CASD Audit and Risk Committee for strategic direction and accountability purposes, and reports administratively to the Chief Executive Officer to facilitate day to day operations.

Public Interest Disclosures (PIDs)

1. Statistical information on PIDs

Jan 2012 – June 2012

Number of public officials who made PIDs 0

Number of PIDs received 0

Of PIDs received, number primarily about:

Corrupt conduct 0

Maladministration 0

Serious and substantial waste 0

Government information contravention 0

Local government pecuniary interest contravention

0

Number of PIDs finalised 0

Note: The number of PIDs finalised only refers to PIDs that have been received since 1 January 2012.

2. Commentary on PID obligations

2.1. The Sporting Injuries Committee (SIC) has an Internal Reporting Policy that was issued by the Chief Executive to all SIC staff in October 2011.

2.2. The Department Head has taken action to make staff aware of their rights and responsibilities under the Public Interest Disclosure Act 1994. Awareness activities within the current PID reporting period (1 January to 30 June 2012) include internet communications and posters. Whilst new SIC staff receive PID training as part of their induction training, there have been no new staff inductions during the PID reporting period.

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 endorsed by the CASD Budget and Finance Committee before approval from the NSW Sporting Injuries 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 the Compensation Authorities Staffing Division External Reporting and Compliance team to perform its finance function thus ensuring segregation of duties and delivery of appropriate financial expertise.

All non-operational funds are invested in NSW Treasury Corporate Hour-Glass managed funds facilities in accordance with the investment authority provided by the Public Finance and Audit Act 1983.

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.

Quarter Current (within

due date)

<30 days

overdue

30 - 60 days

overdue

60 - 90 days

overdue

90+ days

overdue

September 2011 $219,015 - - - -

December 2011 $299,602 - - - -

March 2012 $252,136 - - - -

June 2012 $356,212 - - - -

Total $1,126,965 - - - -

Consultancies

Consultancy Area Cost $

Finity Consulting Pty Limited $35,000

Economic/other factors affecting operational objectives

Except as stated in the accompanying financial statements, there were no economic or other factors affecting the achievement of operational objectives in 2011/12 (also zero in 2010/11).

2011/12


Investment performance

The Committee invests all reserves within the NSW Treasury Corporation Hour-Glass Investment Facilities.

The investment is in accordance with the Committee’s investment authority provided under the Public Finance and Audit Act 1983.

Disclosure of controlled entities and subsidiaries

The NSW Sporting Injuries Committee did not have any controlled entities or subsidiaries during 2011/12.

Representation on significant statutory bodies and inter-departmental 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 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.

Overseas visits

There were no overseas visits during the year.

Departures from the Subordinate Legislation Act

There were no departures from the Subordinate Legislation Act during 2011/12.

Significant judicial decisions

There were no significant judicial decisions during the year.

Production cost of Annual Report

The cost of designing and printing the annual report is approximately $7500 (60 copies). A copy of the annual report is available from the NSW Sporting Injuries Committee website or its office at no cost.

Contact us

The contact details of the NSW Sporting Injuries Committee are:

Address: 92–100 Donnison Street, Gosford NSW 2250

Telephone: (02) 4321 5392 Facsimile: (02) 9287 5392 Email: [email protected] Web: www.sportinginjuries.nsw.gov.au ABN: 22 678 697 920 Office Hours: 9.00am to 5.00pm, Monday to Friday

Acknowledgements

The Committee thanks its officers for their dedication and loyalty throughout the year.

Appreciation is also extended to the staff of the Compensation Authorities Staff Division 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 co-operation, without which the Committee would not function effectively.

2011/12

24

Financial Statements

Statement by Chief Executive Officer 25

Independent Auditor’s Report 26

Statement of Comprehensive Income 28

Statement of Financial Position 29

Statement of Cash Flows 30

Statement of Changes in Equity 31

Notes to financial statements

Note 1: Constitution and purpose of the Committee 32

Note 2: Summary of significant accounting policies 32

Note 3: Underwriting result 38

Note 4: Earned premiums 38

Note 5: Investment returns 39

Note 6: Personnel services 39

Note 7: Other operating services 39

Note 8: Net claims incurred 39

Note 9: Receivables 40

Note 10: Financial assets at fair value 40

Note 11: Financial instruments 40

Note 12: Payables 46

Note 13: Outstanding Claims 47

Note 14: Provisions 50

Note 15: Reconciliation of net result for the year to net cash flows from operating activities 51

Note 16: Cash and cash equivalents 51

Note 17: Contingent Liabilities and Assets 51

Note 18: Commitments 51

Note 19: Events after the Reporting Period 51

2011/12


FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2012Sporting Injuries Committee

Statement by Chief Executive Officer

Pursuant to Section 41C of the Public Finance and Audit Act 1983 I declare that in my opinion:

1. The accompanying financial statements exhibit a true and fair view of the financial position of the Sporting Injuries Committee as at 30 June 2012 and transactions for the year then ended.

2. These financial statements have been prepared in accordance with the provisions of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2010, Australian Accounting Standards and the Treasurer’s Directions.

I am not aware of any circumstances which would render any particulars included in the financial statements to be misleading or inaccurate.

Signed at Sydney this 26th day of September, 2012.

Julie Newman A/Chief Executive Officer Safety, Return to Work and Support Division

26 September 2012

2011/12

26

Independent Auditor’s Report

2011/12


Independent Auditor’s Report

2011/12

28


Statement of Comprehensive Income for the year ended 30th June 2012

Actual2012

Actual2011

Notes $'000 $'000

Revenue

Earned premiums 2(e)(i) & 4 776 708

Contributions 2(e)(ii) 417 219

Injury prevention levy 2(e) (iii) 56 57

Investment returns 5 77 203

Other revenue - -

Total revenues 1,326 1,187

Expenses excluding losses

Operating expenses

Personnel services 6 308 326

Other operating expenses 7 276 245

Grants and subsidies 72 90

Other expenses

Net claims incurred 8 770 384

Premium Liability deficiency (52) 4

Total expenses excluding losses 1,374 1,049

Net Result (48) 138

Other comprehensive income - -

Total other comprehensive income - -

Total comprehensive income (48) 138

The accompanying notes form part of these financial statements.

2011/12



Actual2012

Actual2011

Notes $'000 $'000

Assets

Current assets

Cash and cash equivalents 16 1,243 901

Receivables 9 936 661

Total current assets 2,179 1,562

Non-current assets

Financial assets at fair value 10 2,169 2,132

Total non-current assets 2,169 2,132

Total assets 4,348 3,694

Liabilities

Current liabilities

Payables 12 611 587

Outstanding claims 13 1,021 716

Provisions 14 267 224

Total current liabilities 1,899 1,527

Non-current liabilities

Outstanding claims 13 1,596 1,259

Provisions 14 31 38

Total non-current liabilities 1,627 1,297

Total liabilities 3,526 2,824

Net assets 822 870

Equity

Accumulated funds 822 870

The accompanying notes form part of these financial statements

Cash flows from operating activities

Statement of Financial Position as at 30 June 2012

2011/12

30


Actual2012

Actual2011

Notes $'000 $'000

Receipts

Premiums 837 883

Contributions 142 367

Injury prevention levies 57 55

Investment returns 40 44

Other revenue - -

Total receipts 1,076 1,349

Payments

Personnel services 252 321

Other operating expenses 289 332

Grants and subsidies 65 104

Claims 128 353

Total payments 734 1,110

Net cash flows from operating activities 15 342 239

Cash flows from investing activities

Proceeds from sale of investments - 120

Purchase of investments - (320)

Net cash flows from investing activities - (200)

Net increase/(decrease) in cash 342 39

Opening cash and cash equivalents 901 862

Closing cash and cash equivalents 16 1,243 901


Statement of Cash Flows for the year ended 30th June 2012

2011/12



Accumulated funds 2012

Accumulated funds 2011

Notes $'000 $'000

Balance at start of financial year 870 732

Net result (48) 138

Total other comprehensive income - -

Total comprehensive income for the year (48) 138

Balance at end of financial year 822 870


Statement of Changes in Equity for the year ended 30 June 2012

2011/12

32


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.

These financial statements for the year ended 30 June 2012 has been authorised for issue by the Acting Chief Executive Officer of Safety, Return to Work and Support Division on the 26th of September 2012.

NOTE 2 Summary of significant accounting policies

(a) Basis of financial statements

These financial statements are general purpose financial statements which have been prepared in accordance with:

• applicable Australian Accounting Standards (which include Australian Accounting Interpretations) and

• the requirements of the Public Finance and Audit Act 1983 and the Public Finance and Audit Regulation 2010.

Property, plant and equipment and financial assets at ‘fair value through profit or loss’ are measured at fair value. Other financial statement items are prepared in accordance with the historical cost convention.

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

All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency.

(b) Statement of compliance

The financial statements and notes comply with Australian Accounting Standards, which include Australian Accounting Interpretations.

(c) 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.

(d) Accounting for the Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not receivable from the Australian Taxation Office (ATO). In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to the ATO is included with other receivables or payables in the Statement of Financial Position.

Cash flows are presented on a gross basis.

(e) 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.

Notes to and forming part of the financial statements for the year ended 30 June 2012

2011/12



NOTE 2 Summary of significant accounting policies (continued)

(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 1978. 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 Insurance Scheme which is repayable with interest.

(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.

(f) 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 30% in 2011/12 (29% in 2010/11).

(g) Assets

(i) 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 net result for the year when impaired, derecognised or through the amortisation process. Short-term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.

(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 net result 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 & 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 net result for the year, where there is objective evidence.

(v) De-recognition of financial assets and financial liabilities

A financial asset is derecognised when the contractual rights to the cash flows from the financial assets expire or if 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.


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34



A financial liability is derecognised when the obligation specified in the contract is discharged or cancelled or expires.

(h) Liabilities

(i) 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

(a) Personnel services - annual leave, sick leave and on-costs

The Committee’s staff are supplied by the Compensation Authorities Staff Division (CASD). Liabilities for personnel services (including non-monetary benefits) that are due to be settled within 12 months after the period in which the employee’s 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.

Long term annual leave that is not expected to be taken within twelve months is measured at present value in accordance with AASB 119 “Employee Benefits”. Market yields on government bonds are used to discount long term annual leave.

Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leave taken in the future will be greater than the benefits accrued in the future.

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.

(b) 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 2.5% pa for all future years and the discount rate applied was 3.0% (5.25%- 2010/11).

(i) 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%. The 75% 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.

(j) Research grants

The Sporting Injuries Committee operates a Sports 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.


2011/12




(k) New Australian Accounting Standards issued but not yet effective

In this reporting period, the following Australian Accounting Standards were not used in preparing these financial statements as the standards were not yet effective.

AASB Amendments

Affected standard Operative Date

AASB 9 Financial instruments 1 January 2015

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 1 January 2013

AASB 13 Fair value measurement 1 January 2013



AASB 2011-11 Amendments to Australian Accounting Standards arising from AASB 119 1 July 2013

AASB 2010-10 Further Amendments to Australian Accounting Standards- Removal of Fixed Dates for First-time adopters

1 January 2013

These new standards will have no direct impact on the Committee’s financial statements.

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.

(l) 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.

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(m).


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(m) 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 actuarial valuation at 30 June 2012 was performed by Finity Consulting Pty Ltd. The prior years actuarial valuation was performed by Ernst & Young. Finity Consulting applied different actuarial assumptions in their valuation then those used by Ernst & Young. The assumptions used by Finity in determining the outstanding claims liabilities as at 30 June 2012 were:

2012 2012 2011 2011


Supplement a Sporting Injuries Benefits Scheme


Supplement a Sporting Injuries Benefits Scheme

Frequency (number of future claims to be reported)

15 7 N/A N/A

Average claim cost ($) 55,000 52,000 N/A N/A

Claims handling expense rate

26% of gross claims payments

26% of gross claims payments

$18,000 per claim accepted and paid

$18,000 per claim accepted and paid

Discount rate Yields on Commonwealth Government bonds as at 30 June 2012

Yields on Commonwealth Government bonds as at 30 June 2012



Wage inflation 0% 0% 0% 0%

Superimposed inflation 0% 0% 0% 0%

Process used to determine assumptions

A description of the processes used to determine these assumptions is provided below:

Frequency

The frequency relates to the number of future claims to be reported and paid (ie. Other than open claims), which has been estimated by analysing the historical number of claims settled by accident year. For more recent accident years the frequency is selected based on the trends the claims settled relative to earned premium exposure. For the older accident years the frequency is selected by considering the historical pattern of the settlement of claims at successive intervals subsequent to the injury.

Average claim cost

The average claim cost has been determined by assessing the historical payments made for claims settled for the Schemes. The trend in average payments by each year has been considered and more recent payment experience used.

The total undiscounted cost of future reported claims is estimated by applying the frequency and severity assumptions.

Expense Rate

Claims handling expense assumptions have been expressed as a claim cost as a percentage of claim payments. The expected cost to settle future claims has been applied to the projected payments 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 2009 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.


2011/12




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 net result 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.

Variable Impact of movement in variable

Frequency The outstanding claims liability is impacted by the frequency assumption. An increase or decrease to the frequency will lead to a corresponding impact on the outstanding claims liability.

Average claim cost

The outstanding claims liability is impacted by the average claims cost assumption. An increase or decrease to the average claim cost will lead to a corresponding impact on the outstanding claims liability.

Claims Handling Expense Rate

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.

Discount Rate 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.

Inflation and Superimposed Inflation Rates

As benefits are fixed by legislation 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 2009 has not had an impact on the outstanding claims valuation as it only changed the impairment thresholds for a person to qualify for benefits.

Impact of changes in key variables

Net of recoveries

$’000

Outstanding Claims Central Estimate

Sporting injuries insurance scheme 1966

Supplementary Sporting Injuries Benefits Scheme 651

2617

Variable Moment in variable Adjusted amounts

$’000

Frequency

Increase in the future number of claims settled 10% 2944

Reduction in the future number of claims settled 10% 2291

Average claim size

Increase in the average claim size 10% 2791

Reduction in the average claim size 10% 2444

Expense rate

Increase in claims handling expense 5% 2720

Reduction of claims handling expense 5% 2514

Discount rate +1% 2571

-1% 2666

Payment pattern

Increase mean term 6 Months 2576

Reduce mean term 6 Months 2646


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38



(n) 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 and Note 11.

(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 50% (2011: 48%) 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 13 show the Committee’s estimates of total claims outstanding for each underwriting year at successive year ends.

(v) 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 Underwriting result

2012 2011

$’000 $’000

Premiums earned 776 708

Contributions received 417 219

Total underwriting revenue 1193 927

Net claims incurred 770 384

Premium liability deficiency (52) 4

Other underwriting expenses 197 191

Total underwriting expense 915 579

Underwriting result 278 348

NOTE 4 Earned premiums

2012 2011

$’000 $’000

Premiums notices issued 755 720

Premiums income adjustment 21 (12)

776 708


2011/12



NOTE 5 Investment returns

2012 2011

$’000 $’000

Interest on call and term deposits 4 8

Movement in market values on TCorp investments 73 195

77 203

NOTE 6 Personnel services

2012 2011

$’000 $’000

Salaries and wages (including recreation leave) 246 272

Long service leave 19 10

Payroll and fringe benefits tax 18 17

Workers compensation insurance 4 3

Superannuation 21 24

308 326

NOTE 7 Other operating expenses

2012 2011

$’000 $’000

Committee member fees 22 18

Consultants 2 3

Travel & vehicle expenses 2 1

Fees 75 112

Auditor’s remuneration-audit of the financial statements 19 18

Printing 11 9

Medical panel & report costs 34 2

Office aaccommodation 29 29

Debts written off 1 –

Other 81 53

276 245

Payments to Committee members are made in accordance with Premier’s Guidelines. The Committee’s other expenses in Note 7 include expenditure incurred in relation to the NSW Sports Safety Awards of $39,000. (2011- $25,000).

NOTE 8 Net claims incurred

2012 2011

$’000 $’000

Claims paid 128 354

Movement in claims liabilities 642 30

770 384

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.


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40


NOTE 8 Net claims incurred (continued)

2012 2011

Current Year $’000

Prior Years $’000

Total $’000

Current Year $’000

Prior Years $’000

Total $’000

Direct business

Gross claims incurred and related expenses – undiscounted

840 (172) 668 795 (389) 406

Discount and discount movement – gross claims incurred

(59) 161 102 (88) 66 (22)

Net claims incurred 781 (11) 770 707 (323) 384

NOTE 9 Receivables

2012 2011

$’000 $’000

Current

Receivables 267 267

Receivables- Contribution Income 669 394

Total Receivables 936 661

NOTE 10 Financial assets at fair value

2012 2011

$’000 $’000

NSW Treasury Corporation Hour Glass Growth Facilities 2169 2132

2169 2132

Current - -

Non-current 2169 2132

2169 2132

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.

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 these financial statements.

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.


2011/12



NOTE 11 Financial instruments (continued)

(a) Financial Instrument categories

Category 2012 2011

Notes $’000 $’000

Financial assets

Cash and cash equivalents 16 N/A 1243 901

Receivables1 9 Loans and receivables at amortised cost 912 641

Financial Assets at fair value 10 At fair value through profit or loss designated as such upon initial recognition

2169 2132

Financial Liabilities

Payables2 12 Financial liabilities measured at amortised cost 173 77

Notes:

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

(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 Statement of Financial Position.

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.

Financial assets and liabilities arising from insurance contracts are stated in the Statement of Financial Position at the amount that best represents the maximum credit risk exposure at balance date.

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 $243,000 (2011: $246,000) and not less than 6 months past due Nil (2011: Nil) and greater than 6 months overdue Nil (2011: Nil) are not considered impaired and together these represent 100% 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. The Committee’s exposure to credit risk is considered to be minimal.

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.


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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.

Details of the Committee’s trade debtors follows:

Total Past due but not impaired Considered impaired

$’000 $’000 $’000

2012

< 3 months overdue - - -

3 months–6 months overdue - - -

> 6 months overdue - - -

2011

< 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 receivables as these are not within the scope of AASB 7 and excludes receivables that are not past due and not impaired. Therefore, the total will not reconcile to the receivables total recognised in the Statement of Financial Position.

(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 monitors its cash and investments to ensure that there are sufficient funds available to meet claims as they become payable.

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 NSW TC 11/12. For small business suppliers, where terms are not specified, payment is made not later than 30 days from date of receipt of a correctly rendered invoice. For other suppliers, if trade terms are not specified, payment is made no later than the end of the month following the month in which an invoice or a statement is received. For small business suppliers, where payment is not made within the specified time period, simple interest must be paid automatically unless an existing contract specifies otherwise. There were no interest payments made for late payment of accounts in 2012. (2011- Nil).

The Committee’s payables are all non interest bearing with a maturity date of less than 1 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 2011. The analysis assumes that all other variables remain constant.

The exposure to interest rate risk on financial instruments at the balance date and previous year is as follows:


2011/12




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:

Weighted average effective

interest rate 2012

Floating interest rate

2012

Non-interest bearing

2012

Total 2012

Financial instruments % $’000 $’000 $’000

Financial assets

Cash at bank 1.25 413 - 413

Cash in cash facilities 4.90 830 - 830

Receivables N/A - 912 912

Financial Assets at fair value N/A - 2169 2169

Total financial assets 1243 3081 4324

Financial liabilities

Trade creditors N/A - 173 173

Total financial liabilities - 173 173

Weighted average effective

interest rate 2011

Floating interest rate

2011

Non-interest bearing

2011

Total 2011

Financial instruments % $’000 $’000 $’000

Financial assets

Cash at bank 4.14 207 - 207

Cash in cash facilities 5.37 694 - 694

Receivables N/A - 641 641

Financial Assets at fair value N/A - 2132 2132

Total financial assets 901 2773 3674

Financial liabilities

Trade creditors N/A - 77 77

Total financial liabilities - 77 77

Exposure to interest rate risk is minimal as the Committee does not have any interest bearing liabilities. 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.


2011/12

44


NOTE 11 Financial instruments (continued)The Committee’s main exposure to interest rates in financial assets and liabilities is in the area of cash. Cash in cash facilities is discussed 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 net result

2012 2011

$’000 $’000

Cash at bank +/-1% 4 2

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

Investment sectors

Investment horizon

2012 2011

$’000 $’000

Cash facility Cash, money market instruments Up to 1.5 years 830 694

Medium term growth facility Cash, money market instruments, Australian and International bonds, listed property, Australian shares

3 years to 7 years 1093 1048

Longterm growth facility Cash, money market instruments, Australian and International bonds, listed property, Australian shares

7 years and over 1076 1084

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, NSW Treasury Corporation has appointed external managers to manage the performance and risks of each facility in accordance with a mandate agreed by the parties. NSW Treasury Corporation has also leveraged off internal expertise to manage certain fixed income assets for the Hour-Glass facilities. 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.


2011/12




NSW Treasury Corporation provides sensitivity analysis information for each of the facilities, using historically based volatility information collected over a 10 year period, quoted at two standard deviations (ie. 95% probability). 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).

Change in unit price Impact on Net Result

2012 2011

$’000 $’000

Hour-Glass Investment - Cash facility +/-1% 8 7

Hour-Glass Investment - Medium term growth +/-6% 66 63

Hour-Glass Investment - Long term growth +/-15% 161 163

(e) Fair value recognised in the Statement of Financial Position

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)

2012 Level 1

2012 Level 2

2012 Level 3

2012 Total

$’000 $’000 $’000 $’000

Financial assets at fair value

TCorp Hour-Glass Invt. Facility - 2169 - 2169

2011 Level 1

2011 Level 2

2011 Level 3

2011 Total

$’000 $’000 $’000 $’000

Financial assets at fair value

TCorp Hour-Glass Invt. Facility - 2132 - 2132

The table above only includes financial assets, as no financial liabilities were measured at fair value in the Statement of Financial Position.

There were no transfers between Level 1 and 2 during the period ended 30 June 2012 and 30 June 2011.


2011/12

46


NOTE 12 Payables

2012 2011

$’000 $’000

Accrued salaries and wages 34 7

Creditors 139 70

Unearned premiums and injury prevention levies 438 458

Premium liability deficiency reserve - 52

Total Payables 611 587

(a) Premium liability deficiency reserve

Unexpired risk liability as at 1 July 52 48

Movement in the unexpired risk liability recognised in the Statement of Comprehensive Income (52) 4

Premium liability deficiency reserve as at 30 June - 52

(b) Calculation of deficiency

Unearned premium liability relating to contracts issued under the Sporting Injuries Insurance Scheme (A)

409 430

409 430

Central estimate of the present value of expected future cashflows arising from future claims on contracts issued under the Sporting Injuries Insurance Scheme

259 301

Risk Margin (75% Probability of Sufficiency) 129 181

(B) 388 482

Deficiency (B)-(A) (zero minimum) - 52

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(d). As with outstanding claims, the overall risk margin is intended to achieve a 75% probability of adequacy

(c) Unearned premiums and injury prevention levies

Unearned premium income 409 430

Unearned injury prevention levies 29 28

438 458


2011/12



NOTE 13 Outstanding Claims

2012 2011

$’000 $’000


Central Estimate 1238 1028

Claims handling costs 291 362

Risk margin 544 417

Outstanding claims liability - undiscounted 2073 1807

Discount to present value (107) (191)

Liability for Outstanding Claims - discounted 1966 1616


Central Estimate 539 250

Claims handling costs 140 154

Risk margin - -

Outstanding claims liability - undiscounted 679 404

Discount to Present Value (28) (45)

Liability for Outstanding Claims - discounted 651 359

Total Outstanding Claims Liability

Current - discounted 1021 716

Non-Current - discounted 1596 1259

2617 1975


(Movements in the Supplementary Sporting Injuries Benefits Scheme )

Carrying amount 1 July 359 447

Additional provisions 135 26

Amounts used (30) (187)

Unused amounts reversed - -

Finance costs 187 73

Carrying amount 30 June 651 359

(a) The weighted average expected term to settlement from the reporting date of the outstanding claims is estimated to be 2.0 years for the Schemes. This compares with 2.2 years for the Sporting Injuries Insurance Scheme and 2.3 years for the Supplementary Sporting Injuries Benefits Scheme in 2011.

(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:

2012 2011

% %

Discount Rate 2.60 4.80

(c) The following average discount rates were used in measuring the liability for outstanding claims expected to be paid later than one year:

2012 2011

% %

Discount Rate 2.60 4.80-5.90


2011/12

48


NOTE 13 Outstanding Claims (continued)(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 using stochastic modelling and also 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% probability of adequacy.

2012 2011

% %

Risk margin 35.6 30

(e) Reconciliation of movement in discounted outstanding claims liability

2012 2011

$’000 $’000

Brought forward 1975 1945

Recognition of discounted risk margin 141 27

Effect of changes in experience and assumptions 6 (218)

Increase in claims incurred 623 575

Incurred claims recognised in the Statement of Comprehensive Income 770 384

Claim payments during the year (128) (354)

Carried forward 2617 1975


2011/12



NOTE 13 Outstanding Claims (continued)

(f) Claims development table

The following table shows the development of undiscounted outstanding claims relative to the ultimate expected claims for the most recent accident years.

Gross Accident Year

Estimate of ultimate claims cost:

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

At end of accident year

754 881 674 733 728 595 577 506 598 509 540 7,095

One year later 920 662 955 1,018 503 371 381 363 541 305 - 6,019

Two years later 699 546 750 787 650 270 474 278 426 - - 4,880

Three years later

762 413 464 735 802 325 406 383 - - - 4,290

Four years later 661 317 427 729 754 293 481 - - - - 3,662

Five years later 616 271 404 694 736 527 - - - - - 3,248

Six years later 571 224 411 698 634 - - - - - - 2,538

Seven years later

534 140 411 656 - - - - - - - 1,741

Eight years later

471 138 444 - - - - - - - - 1,053

Nine years later 469 164 - - - - - - - - - 633

Ten years and later

428 - - - - - - - - - - 428

Current estimate of cumulative claims cost

428 164 444 656 634 527 481 383 426 305 540 4,988

Cumulative payments

(428) (161) (408) (621) (592) (454) (329) (109) (243) (16) - (3,361)

Outstanding claims –undiscounted

- 3 36 35 42 73 152 274 183 289 540 1,627

Discount (82)

2001 and prior 148

Claims handling expenses

410

Outstanding claims as per Statement of Financial Position

2,103

Risk Margin (Main Scheme only)

514

Final Outstanding claims as per Statement of Financial Position

2,617


2011/12

50


NOTE 14 Provisions

2012 2011

$’000 $’000

Sports Research and Injury Prevention Scheme grants 210 203

Leave and On-costs 88 59

298 262

Current 267 224

Non current 31 38

298 262

AASB 101 Presentation of Financial Statements stipulates that liabilities must be classified as current where the agency does not have an unconditional right to defer the settlement of a liability for at least 12 months after the reporting date. The entitlement to recreation leave and extended leave once seven years service has been reached for CASD employees is unconditional and accordingly all of this leave and associated on costs have been classified as current. Extended leave is recognised after five years and as the taking of thie leave is conditional until seven years service is reached this leave and associated on-costs have been classified as non-current.

It is expected that the leave provisions and on-costs will be settled over the following period:

2012 2011

$’000 $’000

Expected to be settled within twelve months

Recreation and extended leave 34 21

Oncosts on leave 5 3

39 24

Expected to be settled after twelve months

Extended leave 44 32

Oncosts on leave 5 3

49 35

88 59

Movements in the Sports Research and Injury Prevention Scheme

2012 2011

$’000 $’000

Carrying amount at the beginning of the financial year 203 217

Additional provisions recognised 103 123

Amounts used (84) (127)

Unused amounts reversed (12) (10)

Carrying amount at the end of the financial year 210 203


2011/12



NOTE 15 Reconciliation of Net result for the year to net cash flows from Operating Activities

2012 2011

$’000 $’000

Net result (48) 138

Increase in provision for outstanding claims 642 31

Changes in net market value of investments – unrealised (37) (159)

Changes in assets and liabilities

Decrease/ (Increase) in receivables (275) 244

(Decrease) in creditors and accruals 96 (29)

Increase in provisions and unearned premiums (36) 14

Net cash flows from operating activities 342 239

NOTE 16 Cash and cash equivalentsFor 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 Statement of Financial Position as follows:

2012 2011

$’000 $’000

Cash and cash equivalents 1243 901

1243 901

NOTE 17 Contingent Liabilities and Assets

There are no known contingent liabilities & assets (2011 - NIL).

NOTE 18 Commitments

The Committee has no known commitments not already included elsewhere in these financial statements.

NOTE 19 Events after the Reporting PeriodThe Safety, Return to Work and Support Act 2012 was proclaimed on 1 August 2012. This Act abolished the Sporting Injuries Committee and transferred the assets, rights and liabilities to the WorkCover Authority of New South Wales.

End of audited Financial Statements


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