The following is a brief summary of the overall financial position of the agency. The information is unaudited. Full audited financial statements for 2023-2024 are attached to this report.
Statement of Comprehensive Income | 2023-24 Budget $000 | 2023-24 Actual $000 | Variation $000
| 2022-23 Actual $000 |
|---|---|---|---|---|
Total Income | 34 050 | 36 580 | 2 530 | 33 313 |
Total Expenses | 27 120 | 27 700 | (580) | 25 691 |
Net Result | 6 930 | 8 880 | 1 950 | 7 622 |
Income tax equivalent | 2 082 | 2 664 | (582) | 2 287 |
Total Comprehensive Result | 4 848 | 6 216 | 1 368 | 5 335 |
Statement of Financial Position | 2023-24 Budget $000 | 2023-24 Actual $000 | Variation $000
| 2022-23 Actual $000 |
|---|---|---|---|---|
Current assets | 10 459 | 12 261 | 1 802 | 9 918 |
Non-current assets | 35 832 | 35 356 | (476) | 33 292 |
Total assets | 46 291 | 47 617 | 1 326 | 43 210 |
Current liabilities | 6 419 | 6 871 | (452) | 6 282 |
Non-current liabilities | 12 423 | 12 480 | (57) | 13 478 |
Total liabilities | 18 842 | 19 351 | (509) | 19 760 |
Net assets | 27 449 | 28 266 | 817 | 23 450 |
Equity | 27 449 | 28 266 | 817 | 23 450 |
The Public Trustee’s net result before distributions was an $8.88 million profit in 2023-24. That was $1.95 million higher than budget as a result of:
- Revenue $2.53 million (7.4%) better than budget primarily due to strong returns on Corporate Investments with investment markets performing well in 2023-2024.
- Expenses $0.58 million (2.1%) higher than budget. This was primarily due to unavoidable staff expenditure covering workforce shortages in our customer services branches.
The Public Trustee pays an annual dividend to the Department of Treasury and Finance equal to the net result after the income tax equivalent. The dividend for
2023-24 was $6.2 million (2022-23: $5.3 million).
The variation to budget in the Statement of Financial Position is primarily related to higher short term financial assets at 30 June 2024. Short term financial assets have increased due to surplus cash invested from a higher than budgeted result.
Consultancies with a contract value below $10,000 each
Consultancies | Purpose | $ Actual payment |
|---|---|---|
Nil | Not applicable | $0 |
Consultancies with a contract value above $10,000 each
Consultancies | Purpose | $ Actual payment |
|---|---|---|
Nil | Not applicable | $0 |
Contractors with a contract value below $10,000
Contractors | Purpose | $ Actual payment |
|---|---|---|
All contractors below $10,000 each - combined | Various | $95 984 |
Contractors with a contract value above $10,000 each
Contractors | Purpose | $ Actual payment |
|---|---|---|
E-Matrix Training | Staff Training | $14 080 |
Iocane Pty Ltd | ICT software security review | $16 060 |
KPMG Pty Ltd | Strategic Planning Services | $17 432 |
Adaptive Psychology Pty Ltd | Work from home trial review | $18 288 |
Rosslyn Cox and Mark Williams Consulting Pty Ltd | Staff Training | $19 800 |
Peoplebank Australia Pty Ltd | Temporary Staff | $20 250 |
Symplicit Pty Ltd | ICT Training | $32 290 |
Pinnacle Workplace Consultants | Workplace Assessments | $41 061 |
Deloitte Financial Advisory Pty Ltd | Revenue scenario modelling | $41 965 |
Dialog Pty Ltd | ICT support - Hitrust software upgrade | $58 912 |
Blue Crystal Solutions | ICT database support | $63 360 |
The Information Management Group | Scanning services | $63 516 |
Paxus Australia Pty Ltd | Temporary Staff | $68 839 |
Ernst and Young | Customer Investment Software maintenance and support | $71 280 |
Deloitte Touche Tohmatsu | Internal audit services | $140 806 |
Hays Specialist Recruitment Pty Ltd | Temporary Staff | $220 366 |
Randstad Pty Ltd | Temporary Staff | $417 128 |
KPMG Australia Technology Solutions Pty Ltd | Customer Financials System Replacement | $4 275 715 |
Total | $5 601 148 |
Data for previous years is available at: https://data.sa.gov.au/data/organization/attorney-general-s-dept
The details of South Australian Government-awarded contracts for goods, services, and works are displayed on the SA Tenders and Contracts website. View the agency list of contracts. The website also provides details of across government contracts.
Under the Public Corporations Act 1993, a Charter must be prepared for a Public Corporation and agreed between the Attorney-General and the Treasurer.
The Charter describes the reporting and accountability requirements and outlines objectives for invested customer funds, financial and other performance targets. It also sets out the responsibilities and the expectations of both the Public Trustee and the Government. The Charter is reviewed annually.
Overall, investment returns for the 2023-24 financial year were strong. Prospects of lower interest rates and enthusiasm towards global technology companies helped boost market returns. Global shares were the best performing asset class, led by rapidly rising US technology stocks, whilst more defensive, value orientated sectors of the market lagged. Fixed income returns were also positive, with attractive yields on offer for investors.
During the financial year, the Reserve Bank of Australia (RBA) raised interest rates by 0.25% to 4.35%, noting that inflation remains above target and is proving persistent. For the last 3 years, annualised inflation has been running at 5.32%. Over the course of the financial year returns for our customers’ cash investments has steadily improved in line with higher rates.
For the financial year, investment returns ranged from 3.79% for Cash to 11.14% for Equities, net of fees. Overall the Public Trustee’s investment strategies continue to perform soundly over the long term, with a continued focus on quality and downside protection. Ten year returns stand at 1.74% for Cash to 7.84% for Equities, net of fees. Due to the recent high levels of inflation (CPI) some investments trail CPI based objectives over their suggested time frames. This may continue in the short term, while inflation remains high.
Investment Performance versus CPI Objectives as at 30 June 2024
Investment Strategy | CPI Objective | Investment Horizon | Target Return % pa | Actual Return % pa | Over (+)/ Under(-) | Over/Under performance % pa |
Capital Stable | CPI + 1.5% pa | 3 Years | 6.82% | 1.34% | - | -5.48% |
Balanced | CPI + 2.5% pa | 5 Years | 6.37% | 3.03% | - | -3.34% |
Growth | CPI + 3.5% pa | 7 Years | 6.78% | 4.90% | - | -1.88% |
Equities | CPI + 4% pa | 10 Years | 6.74% | 7.84% | + | 1.10% |
*Net of fees.
2023–24 Standard Investment Strategies’ Performance
Last | Last | Last | Last | Last | |
Cash | 3.79% | 1.92% | 1.38% | 1.52% | 1.74% |
Benchmark | 3.34% | 1.44% | 0.64% | 0.71% | 0.86% |
Variance | 0.45% | 0.48% | 0.74% | 0.81% | 0.88% |
| |||||
Capital Stable | 4.85% | 1.34% | 2.01% | 2.49% | 3.02% |
Benchmark | 4.92% | 1.02% | 1.79% | 2.60% | 2.92% |
Variance | -0.07% | 0.32% | 0.22% | -0.11% | 0.10% |
| |||||
Balanced | 5.65% | 1.72% | 3.03% | 3.77% | 4.46% |
Benchmark | 6.23% | 2.09% | 3.13% | 4.30% | 4.63% |
Variance | -0.58% | -0.37% | -0.10% | -0.53% | -0.17% |
| |||||
Growth | 6.75% | 2.29% | 4.10% | 4.90% | 5.61% |
Benchmark | 7.89% | 3.22% | 4.68% | 5.75% | 5.92% |
Variance | -1.14% | -0.93% | -0.58% | -0.85% | -0.31% |
| |||||
Equities | 11.14% | 3.45% | 6.61% | 7.27% | 7.84% |
Benchmark | 13.87% | 5.76% | 7.91% | 8.71% | 8.43% |
Variance | -2.73% | -2.31% | -1.30% | -1.44% | -0.59% |
2023–24 Asset Allocation
The cash objective is to provide customers a very low risk strategy designed to achieve a return comparable to the 90 day bank bill rate and provide the advantage of having funds available at 24 hour call for amounts of up to $1 million.
2023–24 Capital Stable Standard Investment Strategy
Common Fund | Allocation (%) 2023-24 | Allocation (%) 2022-23 | ||||
Neutral | Period End | $m | Neutral | Period End | $m | |
Australian Shares | 12.0% | 10.2% | 18.97 | 12.0% | 10.5% | 16.81 |
Overseas Shares | 10.0% | 10.6% | 19.74 | 10.0% | 9.6% | 15.43 |
Property | 12.0% | 12.4% | 23.24 | 12.0% | 12.8% | 20.64 |
Long Term Fixed Interest | 16.0% | 15.9% | 29.75 | 16.0% | 15.9% | 25.70 |
Short Term Fixed Interest | 24.0% | 24.7% | 46.23 | 24.0% | 24.9% | 40.09 |
Overseas Fixed Interest | 14.0% | 13.6% | 25.47 | 14.0% | 13.6% | 21.95 |
Cash | 12.0% | 12.6% | 23.44 | 12.0% | 12.7% | 20.50 |
TOTAL | 100% | 100% | 186.84 | 100% | 100% | 161.12 |
2023–24 Balanced Standard Investment Strategy
Common Fund | Allocation (%) 2023-24 | Allocation (%) 2022-23 | ||||
Neutral | Period End | $m | Neutral | Period End | $m | |
Australian Shares | 21.0% | 19.8% | 56.62 | 23.0% | 20.4% | 54.07 |
Overseas Shares | 18.0% | 17.2% | 49.24 | 16.0% | 15.7% | 41.46 |
Property | 22.5% | 23.8% | 67.85 | 22.5% | 24.5% | 64.93 |
Long Term Fixed Interest | 16.0% | 16.2% | 46.32 | 16.0% | 16.3% | 43.11 |
Short Term Fixed Interest | 6.0% | 6.3% | 18.00 | 6.0% | 6.4% | 16.82 |
Overseas Fixed Interest | 13.0% | 12.9% | 36.83 | 13.0% | 12.9% | 34.20 |
Cash | 3.50% | 3.80% | 10.64 | 3.5% | 3.8% | 10.03 |
TOTAL | 100% | 100% | 285.50 | 100% | 100% | 264.62 |
2023–24 Growth Standard Investment Strategy
Common Fund | Allocation (%) 2023-24 | Allocation (%) 2022-23 | ||||
Neutral | Period End | $m | Neutral | Period End | $m | |
Australian Shares | 29.0% | 25.1% | 54.34 | 29.0% | 26.0% | 56.03 |
Overseas Shares | 24.0% | 25.9% | 56.24 | 24.0% | 23.7% | 51.14 |
Property | 24.0% | 25.4% | 55.12 | 24.0% | 26.4% | 56.96 |
Long Term Fixed Interest | 10.0% | 10.2% | 22.05 | 10.0% | 10.3% | 22.16 |
Short Term Fixed Interest | 4.0% | 4.2% | 9.14 | 4.0% | 4.3% | 9.22 |
Overseas Fixed Interest | 6.0% | 6.0% | 12.94 | 6.0% | 6.0% | 12.98 |
Cash | 3.0% | 3.2% | 6.94 | 3.0% | 3.3% | 7.07 |
TOTAL | 100% | 100% | 216.77 | 100% | 100% | 215.56 |
2023–24 Equities Standard Investment Strategy
Common Fund | Allocation (%) 2023-24 | Allocation (%) 2022-23 | ||||
Neutral | Period End | $m | Neutral | Period End | $m | |
Australian Shares | 55.0% | 49.4% | 40.06 | 55.0% | 52.6% | 39.78 |
Overseas Shares | 45.0% | 50.6% | 40.98 | 45.0% | 47.4% | 35.89 |
TOTAL | 100% | 100% | 81.04 | 100% | 100% | 75.67 |
Data for previous years is available at: https://data.sa.gov.au/data/organization/attorney-general-s-dept