Annual Report 2015-2016 5 September 2016

The Honourable Yvette D’Ath MP Attorney-General and Minister for Justice and Minister for Training and Skills GPO Box 149 Qld 4001

Dear Minister,

I am pleased to present the Annual Report 2015-2016 and financial statements for TAFE .

I certify that this Annual Report complies with:

• the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009; and • the detailed requirements set out in the Annual Report requirements for Queensland Government agencies.

A checklist outlining the annual reporting requirements can be accessed at www.tafeqld.edu.au

Yours sincerely

Warren Tapp Board Chair TAFE Queensland Contents

Board Chair’s message 3 Stronger within 22 Ahead of the Curve 24 Chief Executive Officer’s message 5 A Focus on Growth 26 Our organisation 6 Governance 28 Our training network 7 Organisational Structure 28 Board 29 Key results 2015-16 8 Board Members 30 Committees 32 Financial performance 9 Performance measures 33 Governance – other reporting requirements 34 Our activity 10 Financial statements 2015-16 36 Staff profile 16 Management Certificate 67 Year in Review 17 Independent Auditor’s Report 68 Setting the Standard 18 Glossary of Terms 70 Delivering for Queensland 20

About this report The 2015-16 Annual Report for TAFE Queensland has been prepared in accordance with the Financial Accountability Act 2009, the Financial and Performance Management Standard 2009 and the TAFE Queensland Act 2013.

To meet State Government requirements, a minimum number of copies of this report were printed. This Annual Report is also available online at www.tafeqld.edu.au

TAFE Queensland is committed to providing accessible services to Queenslanders from all culturally and linguistically diverse backgrounds. If you have any difficulty in understanding the annual report please call TAFE Queensland on (07) 3514 3600 to arrange an interpreter to effectively communicate this report to you.

TAFE Queensland Annual Report 2015-16 © TAFE Queensland 2016 ISSN 1322-5154 (Print) ISSN 2205-4677 (Online) This annual report is licensed by TAFE Queensland under a Creative Commons Attribution (CC BY) 4.0 licence.

Public availability

CC BY Licence Summary Statement: On the cover: In essence, you are free to copy, communicate and adapt A master’s graduate in architecture but looking for a career that was this annual report, as long as you attribute the work to more hands on, Lara Nobel completed a carpentry apprenticeship TAFE Queensland. To view a copy of this licence, visit with TAFE Queensland. TAFE’s flexibility, recognition of prior learning http://creativecommons.org/licenses/by/4.0/au/deed.en and practical study environment gave her the skills to start her own construction business. Today, Lara has been named 2015 Attribution: Content from this annual report should be Construction Skills Queensland Apprentice of the Year and her attributed as: TAFE Queensland Annual Report 2015-16 construction business, the Tiny House Company grows big.

Annual Report 2015-2016 1 CASE STUDY

TAFE Queensland official partner of the Gold Coast 2018 Commonwealth Games

The Gold Coast 2018 Volunteers will gain practical training The aim of the program is to build the in real world environments that will capacity of Indigenous business owners Commonwealth Games prepare them, not only for the Games, to successfully tender for work, fulfil (GC2018) will be the but also improve their employment tender requirements and ultimately build biggest sporting event prospects and provide a legacy of sustainable and profitable businesses. skills and experience for Queensland. Australia has seen in To help industry prepare for the growth Work has already started on delivering in tourism expected as a result of the over a decade. the skills employees will need to Games, TAFE Queensland is delivering a supply services to the Games. four part multi-faceted, bespoke training As the official training partner, TAFE program to more than 300 employees Queensland will be responsible for TAFE Queensland is working with NEP of Twin Towns Clubs and Resorts. developing bespoke vocational Broadcasting on opportunities to recruit education and training (VET) programs graduates from TAFE programs and In addition, TAFE Queensland has for some 15,000 volunteers, place students in work in the lead up relocated the delivery of its hospitality providing them with transferrable to the Games and during operations. and commercial cookery programs skills that will last a lifetime. from Ashmore to Southport and Small Business Mentoring programs invested in an industry-specific The partnership provides TAFE are being delivered to Indigenous training facility adjacent to the Queensland with the opportunity to business owners looking to work with Southport Campus branded the demonstrate our strengths as a market Grocon, the construction company for Hospitality Hub. The Hospitality Hub leader of high quality education and the Commonwealth Games Village. is a student-run operation with top- training and showcase our talented end facilities delivering training from staff and students to the world. back-of-house to front-of-house.

tafeqld.edu.au/gc2018 2 Board Chair’s message

When the TAFE This commitment has positioned TAFE Leveraging our strengths as Queensland’s Queensland as a key contributor to both largest provider of VET, in March we Queensland Board was state and federal further education and entered into a historic partnership with appointed in August 2013 training policy, playing an integral role the 2018 Commonwealth Games to in the future reform of the sector. TAFE be held on the Gold Coast. Only TAFE TAFE Queensland was Queensland has made a significant Queensland has the capacity, reputation a diverse organisation, contribution to the federal reform agenda and experience to deliver training to spread across 13 separate during what has been a tumultuous time the 15,000 volunteers who will be an for the sector. Over the past 18 months, essential part of making the Games great. institutes working in a we have made several submissions to culture of competition Australian Government consultation As we approach the end of our term processes and in February 2016, as TAFE Queensland’s inaugural across the state. we provided our first ever pre- Board, it is timely to reflect on our budget submission to the Australian journey and celebrate the remarkable Our transformation into a single statutory Government outlining our position achievements we, as an organisation, body with a strategic mission to be an on key matters confronting the sector. have made during a challenging efficient, sustainable and responsive time. I would like to thank my Board organisation has been successfully In 2015-16, we have worked closely colleagues for their time and efforts in made against the backdrop of with the Queensland Government, contributing to TAFE Queensland. ongoing VET reform and an aggressive through the state Department of On behalf of the Board, I would like to competitive landscape. Education and Training, on a plan to revitalise Queensland’s training assets. thank TAFE Queensland management This Annual Report demonstrates At a series of stakeholder consultation and staff for their hard work and continued strength in our performance sessions across the state, we reaffirmed commitment to our strategic direction for 2015-16 including a positive our commitment to supporting all and to our purpose of supporting the operating position for the third communities, but in particular across growth of Queensland’s economy consecutive year and continuing regional Queensland, by ensuring they through the provision of high quality improvements in the satisfaction levels have access to training where and when education and training. of our students, our industry customers they need it. We have engaged with Our unerring focus on quality and and our staff. industry more closely to understand proud history of delivering training that their needs and provide training to transforms lives sets us apart as the Throughout 2015-16, TAFE Queensland meet them. has remained true to our 130 years of premier VET provider in Queensland. It is history as the public provider committed In addition, the creation of TAFE Chairs from this position that TAFE Queensland to provide quality training that delivers Australia in July 2014 has provided can continue to play an important role in real outcomes for students and industry. a commercial and governance focus shaping the future of the VET sector and This heritage offers us an enduring from outside government, to national safeguard its place in the state’s social role in every community in which we discussions about VET and TAFE and and economic future. work and underpins our contribution to I am proud to be the inaugural TAFE strengthening the skills base that drives Queensland representative and Chair Warren Tapp our state’s economy. of this group. Board Chair TAFE Queensland Annual Report 2015-2016 3 CASE STUDY

Six star program delivers world class skills

In December 2015 TAFE Focusing on programs in hospitality TAFE Queensland’s partnership with service, culinary arts and front of Star Entertainment Group to create Queensland celebrated house, our training is designed to the Queensland Hotel and Hospitality the successful graduation specifically meet the demanding School commenced in August 2015. of the first 14 students standards of the growing six star To date, the partnership has provided luxury property market. Participants in real-world experience and successful from our Six Star the world class program complete their job outcomes for students to prepare International Hospitality training at TAFE Queensland’s new them for their new career in hospitality. Hospitality Hub in Southport on the Service program run Gold Coast or at TAFE Queensland’s The Queensland Hotel and Hospitality in partnership with state-of-the-art facility at South Bank. School aims to lift the quality of service across the industry in the lead up to Star Entertainment. The partnership has the support the 2018 Commonwealth Games of some of Queensland’s largest and the completion of the Destination hotel groups including the Hilton Brisbane Consortium’s Queens Wharf Brisbane Hotel, Palazzo Versace, Project in 2022. Intercontinental Sanctuary Cove Resort and Sea World Resort and Waterpark.

4 Chief Executive Officer’s message

In 2015-16 the further We have continued to focus on We are taking the TAFE Queensland strengthening our service network experience to the world through TAFE education and training across Queensland and ensuring that Queensland International and in 2016 sector has continued all Queenslanders across our state’s students from 84 countries chose to wide geography can access quality study with us due to our global profile, to see aggressive VET. Our customers continue to world class training and facilities, and competition and has been report high levels of satisfaction with the wide range of programs offered. challenged to maintain current students’ overall satisfaction TAFE Queensland’s Australia-Pacific with our training at 88.9% – an Technical College (APTC) is developing a culture of quality. increase from 87.9% in 2014 – and real skills for employment across the employers’ overall satisfaction with Pacific Island region, delivering demand Throughout this, TAFE Queensland has the training at an impressive 91.4% driven, Australian-standard training stood strong and continued to set the – an increase from 89.7% in 2014. and improving the economic prosperity standard for high quality education and of the region. training in Queensland. Our already Our commitment to innovation and responsive approach to changes in workforce productivity has been And we have done all this while the VET market has seen us continue demonstrated with the creation of delivering top quality training to to support the development of skills in TAFE Queensland RedSpace: Centre 122,245 students across more than Queensland communities while actively for Applied Research and Innovation. 600 program areas. None of these pursuing opportunities to grow and TAFE Queensland RedSpace: will work achievements would have been innovate across our business. to grow a culture of innovation and possible without the unwavering applied research across the sector that commitment and passion of our This year we continued our commitment will add value to our internal capability employees. It is their responsiveness to industry, negotiating landmark and enhance our engagement with and willingness to listen to the needs of agreements with major organisations stakeholders as we work collaboratively students and industry that will see us across the state to deliver customised to solve their business challenges. continue to fulfil our role as a financially training solutions. From the Queensland strong, community minded provider of Rail Training Centre of Excellence at our We have expanded our higher education the highest quality VET in Queensland. Acacia Ridge campus to our dedicated offering in partnership with the University six-star Queensland Hotel and Hospitality of Canberra and in 2016 students have School with Star Entertainment, we 25 higher education programs to choose continue to work hand-in-hand with from across a number of study areas industry to deliver the skills Queensland including degrees in arts, acting, fashion, needs now and into the future. This gaming, dental services, digital design year, the welding, tourism and hospitality and civil engineering, and masters Jodi Schmidt industries have recognised our efforts programs in professional accounting and Chief Executive Officer at their annual industry awards and we business management. At the end of TAFE Queensland were proud to be named as the state’s June 2016 more than 720 students had Large Training Provider of the Year at the taken the opportunity to pursue higher 2015 Queensland Training Awards for education with TAFE Queensland. the first time as one TAFE Queensland.

Annual Report 2015-2016 5 Our organisation

TAFE Queensland is the largest and most experienced provider of VET in the state, with a history of serving Queensland’s communities for more than 130 years.

TAFE Queensland is a statutory body servicing the length and breadth of the state through six regions. Our unique structure allows us to deliver high quality training solutions that meet the needs of students and industry regionally, across the state and around the world. Our offering spans foundation skills and entry level workforce qualifications to higher education degrees across more than 600 program areas. We provide individuals with training options at every stage of their career and employers with skilling solutions that respond to complex workforce needs.

Our vision Our values Our strategic Continue to be the market Innovation leader of high quality education priorities Bringing new ideas to life and training in Queensland and • Define our market position target markets beyond. Accountability • Sharpen our industry, employer Delivering on our promises to and student focus our customers and each other Our mission • Build our capability and To be an efficient, effective, Commerciality outcomes focus sustainable and responsive Building a sustainable organisation that develops organisation • Innovate our products and services individual’s skills and employment • Embed sustainability Teamwork opportunities, meeting employer, Working together as industry and community needs. Key achievements against these priorities appear one TAFE Queensland in the Year in Review section of this document.

Great recognition – TAFE Queensland

• 2015 Large Training Provider of the Year – Queensland Training Awards • 2015 Training Organisation of the Year – Welding Technology Institute of Australia • 2015 Australian Tourism award finalist – TAFE Queensland Brisbane College of Tourism and Hospitality (COTAH) • 2015 Australian Marketing Institute Awards for Marketing Excellence national finalist and state winner – brand revitalisation, marketing communications – b2c, education and sponsorship • 2015 Migration and Settlement Awards – nominated for the Business Inclusion Award for our work delivering the Adult Migration English Program (AMEP) • 2015 Premier’s Awards for Excellence (Innovation) finalist – Rainbow Gateway Project delivered in partnership with the Department of Housing and Public Works • 2015 Premier’s Industry Collaboration Award, Queensland Training Awards – “Project Booyah” delivered in partnership with the Queensland Police Service and the Police Citizens Youth Welfare Association and various Queensland Government departments

6 Our training network

TAFE Queensland’s physical footprint covers an area from in the North, in the West, Coolangatta in the South and Hervey Bay in the East. Our network of 50 locations supports delivery of training through a variety of modes be it face-to-face, online or in the workplace.

The strength of the TAFE Queensland Our unique structure and state Thursday Island brand is our connection with the local wide delivery model supports our communities in which we operate. commitment to working with students We have structured the business to from a wide range of socio-economic ensure training and skills solutions and cultural backgrounds, in regional meet local needs with our local TAFE and remote locations and with Queensland teams working and living students with diverse needs. Our in the communities they service. responsive approach allows us to adapt our offering to meet the needs of local industries, delivering training that strengthens local communities and provides real employment opportunities for our graduates.

Cairns Great Barrier Reef International Marine College Atherton Normanton Innisfail Palm Island Ingham

Townsville Trade Training Centre Cloncurry Pimlico Caboolture Mount Isa Burdekin Bowen Cannonvale Redclie Bracken Ridge Grovely Eagle Farm Bowen Hills South Bank Yeerongpilly Acacia Ridge Mount Gravatt Browns Plains Loganlea Alexandra Hills

Bundaberg Hervey Bay Maryborough Gympie

Nurunderi Nambour Charleville Roma Kingaroy Maroochydore Chinchilla Mooloolaba Dalby Toowoomba Brisbane Bundamba Coomera Spring eld / Inala Southport Warwick Ashmore Coolangatta

Annual Report 2015-2016 7 Key results 2015-16

Great Training

122,245 91% unique students 53,030

qualifications awarded Employer satisfaction

Great Staff Competency completion rate 89% 89%

Student satisfaction Total staff (FTE) 36.16 3,958 % million Staff satisfaction 87 hours of training 3.98 delivered (scale of 1 to 5) Graduates employed or in further study

Great Performance Great Brand

62.3% 77%

Revenue from non- Queensland employers government sources agree TAFE Queensland is a trusted provider

8 Financial performance

As a not-for-profit statutory Domestic training revenue has This included a grant to support continued to grow from 2014-15, the implementation of information body, TAFE Queensland with increased demand for VET FEE- technology systems, the majority of aims to improve efficiency HELP and additional higher education which went live during 2015-16. and deliver sustained programs offered in partnership with the University of Canberra. TAFE Queensland has continued our positive annual financial prudent management of expenditure, During the reporting period TAFE ensuring operating expenses were results that enable Queensland became the sole operator managed in line with the level of continued investment in of the Australia-Pacific Technical training demand from our customers. our business to achieve College and international revenues have grown as a result. Other offshore The business has maintained a strong our strategic objectives. international programs have also seen financial position, and continues to encouraging growth. hold no debt with all initiatives funded 2015-16 has seen TAFE Queensland through working capital. continue to focus on driving Revenues from individual students, sustainable performance while organisations and Queensland maintaining our commitment to Government subsidies have declined delivering high quality VET that during the year reflecting market is accessible to Queensland’s conditions. We have also seen a communities and employers. state wide decline in the number of Expenditure by management Despite an operating environment apprentices and trainees in training due to regional economic factors. reporting that remains challenging, TAFE classification Queensland returned an end-of-year Grants and contributions (other than operating profit of $12.0 million Queensland Government subsidies) for the year, on an annual turnover decreased by $69.1 million during of $645 million. the year, mainly due to one-off grants Employee Expenses Our continual program of diversification received in 2014-15 to support the establishment of TAFE Queensland Supplies & Services has seen us strengthen our financial Grants & Subsidies as a separate entity and associated position and improve our sustainability. Depreciation & Amortisation structural changes. Other expenses

Highlights from the 2015-16 year are provided below. Further details are contained in the financial statements.

Operating performance: 2014-15 2015-16 financial highlights $’000 $’000 Income by management Income 709,471 645,433 reporting classification Expenses 621,404 633,474 Operating Surplus 88,067 11,959 Cash and cash equivalents 222,256 231,196 Total Assets 336,293 366,825 Domestic Training Total Equity 225,082 268,888 International Training Government Subsidised Training Note: 2014-15 includes a prior year adjustment of $14.2m relating to Queensland Government subsidies Commonwealth Training Programs for training commenced but not completed as at the reporting date. Restatement to earlier periods is not possible as the operations for TAFE Queensland were transferred from the Department of Education and Grants & Contributions Training on 1 July 2014. Other Revenue

Annual Report 2015-2016 9 Our activity

In 2015-16, TAFE Year 12 (equivalent) Statement of Attainment Queensland has Other Non-award courses Certificate I Unique Students continued to deliver by AQF Level Certificate II results in what has Certificate III (or Trade Certificate) Certificate IV (or Advanced Certificate) been a tumultuous Diploma year for the VET sector Higher education programs with numerous private training providers ceasing operation. Unique Students by Top 10 Industry Training Groups

16000 TAFE Queensland provides training 14000 to a diverse student profile including school leavers, upskillers, career 12000 changers, job seekers and small, 10000 medium and large enterprises. This broad customer profile is 8000 representative of the community and 6000 demonstrates our commitment to delivering training to students at any 4000 stage of their career journey and 2000 to business to meet ever changing skills needs. 0

Retail Health Utilities Business HospitalityAutomotive Despite an overall reduction of Construction Engineering Queensland students participating in Community Services Arts & entertainment government funded education and training, TAFE Queensland continues to be the state’s largest training provider of VET:

• delivering programs to 122,245 TAFE Queensland Brisbane unique students in 2015-16 Unique Students TAFE Queensland East Coast by TAFE TAFE Queensland Gold Coast (down from 125,000 in 2014-15) Queensland TAFE Queensland North Region • awarding 53,030 qualifications TAFE Queensland SkillsTech (down from 57,000 in 2014-15) TAFE Queensland South West • providing over 36 million hours of training (down from 38 million in 2014-15). Included in these figures are over 3000 TAFE Queensland continued to deliver Engineering, construction, utilities/ qualifications achieved by Indigenous apprenticeship and traineeship training electrotechnology and hospitality students and over 2000 qualifications across a broad range of industry areas, were the key areas of delivery for awarded to students identifying as experiencing a modest growth of apprenticeship and traineeship training having a disability. 3.7% from 2014-15 to 2015-16 which which is consistent with the previous represented a slight improvement in financial year. market share.

10 Delivering skills to industry We negotiated a significant partnership We are improving market share in the in the $1.8 billion dollar Sunshine Brisbane automotive industry, with Throughout 2015-16, we have Coast Health Institute which, from TAFE Queensland investing $150,000 continued to consult and collaborate 2017, will position TAFE Queensland in mobile training vans to provide a with industry, employers and students as a key education partner. We full range of high quality training at through stakeholder engagement announced a partnership with employers’ workplaces. and business development programs Grand Central Shopping Centre to to identify local issues and develop deliver retail and hospitality training The reporting period has also seen solutions through our product and in the Toowoomba region to support the expansion of existing partnerships service delivery. the $500 million transformation with Echo Entertainment, Ramsay of the complex and the influx of Health and Toyota Motor Corporation We have partnered with Queensland approximately 1,000 retail and to build on the success of tailored Rail to develop the first Rail Training hospitality jobs. training programs for current and Centre of Excellence at our Acacia prospective employees. More on these Ridge Training Centre. partnerships is covered in the Year in Review section.

Operating environment Shifts in the local and global economy We know that the way in which have impacted on business confidence students wish to engage in learning TAFE Queensland continues to and the requirement for training now is continuing to change, driven by operate in a complex environment and into the future. Our extensive reach technology and broader shifts in society. shaped by changes in VET policy, across regional Queensland and diverse the economy and broader society. range of industry offerings means that That’s why, as we invest heavily we experience the full range of economic in new technologies, systems, products Significant VET policy changes in impacts on our service delivery, both state and services, we are spending more Queensland and federally, have had a wide and within individual communities. time listening to our customers to ensure major impact on the VET market over we can maintain our already high levels the past three years. The introduction of To ensure that our 600 plus programs of student and employer satisfaction. fee-deregulation and full contestability state wide reflect the skills that employers of Queensland Government-subsidised demand, we work at a local and Looking forward to 2016-17, TAFE training has seen the proliferation of state level with employers, industry Queensland will continue to meet private registered training organisations groups and other key stakeholders stakeholder expectations and deliver entering the Certificate 3 Guarantee to continually refine our courses. real solutions and benefits for our market which, alongside the customers through a sharpened focus introduction of VET FEE-HELP by the Though much of TAFE Queensland’s on industry, employers and students. Commonwealth, have had a range of efforts in industry and customer unintended consequences for students engagement are focussed on short Our program of continuous improvement and employers. Recent policy changes to medium term course offerings, will see us embrace innovation in our at both levels of government have we have recently collaborated with products and services and at the started to address quality issues within the CSIRO to develop insights into same time ensure our sustainability the marketplace. This can only deliver the nature of work in the future and through adopting an enterprise benefits to consumers to support the important role that VET plays in approach to the way we do business. informed choice of VET study options and shaping the skills that will be needed. More information on TAFE Queensland's help them gain a better understanding advocacy for quality training and how we of the expected outcomes of training. We also work closely with our customers endeavour to keep closely connected During this period of significant change, to understand what they expect from to our external environment can be TAFE Queensland has continued its us. We have recently increased our found in the Year in Review section. advocacy for quality training and worked focus on better understanding the hard to ensure that our customers customer journey that our students received the training they deserve. undertake as they experience our high quality training services.

Annual Report 2015-2016 11 International delivery Off shore phase with copper mining company Codelco to deliver training services Despite a challenging year for TAFE Queensland reinvigorated its in Chile with a total contract value international business, 2015-16 saw approach to the international market of $2 million over five years. in 2015-16, taking a ‘one TAFE’ the negotiation of new partnerships approach to ensure market alignment and the delivery of off shore • Reappointed by Subutaims to and a seamless experience for our international programs which included deliver further training in Mongolia, international customers. the following activity: leading to more opportunities with Rio Tinto. In 2015-16, TAFE Queensland • Signed 14 new training agreements • Doubled partnership projects in International actively recruited single with a contract value over the life of Greater China with eleven current subscriber international students the agreements of $13.5 million. partnerships with a projected while also building longstanding • Awarded Department of Foreign revenue of $7 million. relationships with valued stakeholders, Affairs and Trade (DFAT) funded education agents and partners in Skills for Economic Growth contract • Hosted 19 international study tours. various countries. in the Solomon Islands, which will • Established 18 ELICOS (English deliver approximately $2.9 million Language Intensive Courses for On shore in revenue in 2016-17. Overseas Students) partnerships. There were 1,905 international student • Secured funding from DFAT • TAFE Queensland, as part of the enrolments in 2015-16 with students towards six prestigious Australia recently formed Queensland Skills from 84 countries choosing to study Awards Fellowship programs and Training Consortium, has at TAFE Queensland locations.The in partnership with counterpart secured an agreement with the top 10 most popular programs offered organisations from Indonesia, Indian Government of Kerala to by TAFE Queensland International in Nauru and Papua New Guinea to provide training opportunities as 2015-16 were: provide three weeks of training and part of the Skilling India Project capacity to improve technical and • ELICOS which aims to train 500 million vocational education and training people by 2022. • Certificate III in Cookery in the respective countries. • Certificate IV in Cookery • In the final contract negotiation • Certificate III in Vehicle Mechanics • Diploma of Nursing • Diploma of General Nursing • Certificate III in Carpentry and Joinery 1,905 international students • Certificate IV in Business and from countries Management 8 4 Top ten: China, Hong Kong, South Korea, Taiwan, • Diploma of Business Management Thailand, Vietnam, Philippines, Papua New Guinea, Colombia, India • Diploma of Hospitality.

12 The Australia-Pacific These graduates have gone on to gain Technical College employment, advance their careers, start their own small businesses or The Australia-Pacific Technical College pursue work opportunities abroad (APTC) was designed as a centre of using their Australian-standard skills. training excellence, helping Pacific Island students gain Australian- The APTC is funded by the Australian standard skills and qualifications for Government and managed through a wide range of vocational careers the Department of Foreign Affairs and throughout the Pacific. Trade – Australia Aid.

Since 2007, TAFE Queensland has Programs are delivered by TAFE been delivering training programs Queensland educators based across at APTC campuses in five countries the region. In December 2015, the – Fiji, Samoa, Vanuatu, Papua New Minister for International Development Guinea and Solomon Islands – offering and the Pacific, the Honourable Australian-standard Certificate III and Steven Ciobo MP, officially announced Certificate IV qualifications in a range of a $96 million three year contract hospitality, community services, trades extension for the College. and technology areas. In 2015-16, Mary Siro receiving her Queen's Young Leader APTC delivered programs to 1,750 The training delivered by APTC is Award from Her Majesty Queen Elizabeth II at Buckingham Palace in June 2016. unique students who successfully literally changing lives across the completed 33,547 competencies. Pacific. The benefits are felt not only by the students who leave the College Training at APTC is demand driven, armed with new skills and confidence offering courses to develop real but by the communities in which they skills for employment important to live and work. The transformative effect the economic prosperity of Pacific of the work of the APTC's teachers Island countries. A strong program and students has received recognition of stakeholder engagement including on the international stage with two support of a broad range of industry graduates from the APTC – Mary associations and participation in Siro and Nolan Parairua – receiving industry forums, provides feedback prestigious Queen's Young Leader to ensure training is relevant to local Awards which were presented by employers and students. Her Majesty Queen Elizabeth II at Buckingham Palace in June 2016. More than 9,394 Pacific Islanders from 14 Pacific Island countries have graduated with an Australian qualification since APTC commenced delivery of Technical, Vocational Nolan Parairua receiving his Queen's Young Leader Education and Training (TVET) in 2007. Award from Her Majesty Queen Elizabeth II at Buckingham Palace in June 2016.

Annual Report 2015-2016 13 Great recognition

TAFE Queensland students

• TAFE Queensland SkillsTech electrotechnology • TAFE Queensland Brisbane Diploma of Visual Arts apprentice Luke Schaenzel was selected for the student, Kylie Spinder, won the third round of the national ‘Skillaroos’ team that represented Australia Global Learning Scholarship Program. Kylie and nine at the 43rd WorldSkills International Competition in of her peers and educators embarked on a ten-day São Paulo, Brazil in August 2015. study tour to New York in July 2015. • TAFE Queensland SkillsTech apprentices Nathan • TAFE Queensland North Certificate III in McHugh and Hayden McColl took out the Gold Electrotechnology – Air-Conditioning and Refrigeration and Silver medals at the 2016 WorldSkills Australia student, Aaron Lobley was awarded the Harry National Refrigeration Competition. Gold medal Hauenschild Apprentice of the Year award. winner, Nathan now has a chance to represent • TAFE Queensland South West student Nicola Australia as a Skillaroo at the 44th WorldSkills Lang was awarded the Vocational Student of the Year Competition in Abu Dhabi in 2017. for her achievements studying a Diploma of Nursing • TAFE Queensland Brisbane Photography student, (Enrolled/Division 2 nursing). Sharon Lewin was a finalist for Queensland Student of • TAFE Queensland Gold Coast student the Year at the 2015 Australian Institute of Professional Kieran Chilcott was awarded the Aboriginal and Torres Photography (AIPP) awards. Strait Islander Student of the Year recognising his success in studying a Certificate IV in Mental Health.

Iron Chef Sakai dazzles students with live cooking show In a global coup for TAFE Queensland, Japan's internationally acclaimed and most successful Iron Chef, Hiroyuki Sakai, has been appointed Honorary TAFE Queensland Culinary Ambassador for Japan. Chef Sakai will share his knowledge and experience with TAFE Queensland students and extol the virtues of Queensland's leading international training provider in Japan.

The French Iron Chef conducted a live cooking demonstration on April 29 2016 which was attended by 500 students and members of the general public and live streamed across Queensland from the South Bank campus. All six TAFE Queensland regions had access to the live stream of Chef Sakai's French Iron Chef demonstration making it a wonderful exercise in student engagement.

Two lucky TAFE Queensland cookery students will also get the chance to win a week's work experience in one of Chef Sakai's restaurants in Japan in an upcoming competition that replicates many of the Iron Chef conditions, judged by a panel of three industry professionals, using the Australian Culinary Federation criteria.

14 Mareeba Back to Study students thrive in The Back to Study program has provided a group of students from Mareeba with the opportunity to get their hands dirty while learning life changing skills at TAFE Queensland.

The group of 16 men from Mareeba received real life work experience building a bridge at the Cairns campus as part of their studies for a Certificate II in Resources and Infrastructure Work Preparation. The Back to Study program is designed to help people improve their employment opportunities or change careers by simulating real life work sites and providing hands-on training along with literacy and numeracy support. The Mareeba students were under the expert guidance of Queensland Training Award winning teacher Paul Buckley who said the student's confidence grew throughout the course as they mastered new skills.

Student, Jedidiah Bigie said he really likes his time on campus. “I enjoy learning how to drive the excavator and I also really like the scaffolding training. I feel as though I am learning a lot from Paul, he’s a great teacher and I am sure this qualification will help me find work,” Mr Bigie said. The Back to Study program is funded through the Queensland Government’s Rescuing TAFE initiative which is providing $22.8 million over two years to provide training opportunities and learning support for Queenslanders. The program has been well received by the community with more than 2,700 students enrolling in Rescuing TAFE supported courses in 2015-16, exceeding the 2,545 target for the program.

Rail training centre for apprentices and trainees In a Queensland first, apprentices, trainees and students now have access to rail-based training under a partnership between TAFE Queensland and Queensland Rail. Queensland Rail's new off-site training facility, the Rail Training Centre of Excellence, is based within TAFE Queensland's Acacia Ridge campus.

The new facility is the only simulated rail work environment in Queensland and will provide TAFE Queensland students with hands-on access to rail training. The centre features new classrooms and office space for theory based learning, in addition to track, signalling and overhead infrastructure to simulate a rail work environment.

Queensland Rail will use the centre as part of its ongoing in- house training programs which educate around 300 employees each year in track infrastructure, railway signalling and overhead traction maintenance. When not in use by Queensland Rail, the centre will enable TAFE Queensland to introduce a number of new, rail-specific fields to our curriculum including rail transmission and distribution, and transport and logistics.

Through the new Rail Training Centre of Excellence, TAFE Queensland’s trainers and assessors will work closely with Queensland Rail content experts to share knowledge, expertise and technical skills.

Annual Report 2015-2016 15 Staff profile

TAFE Queensland Great recognition – TAFE Queensland employees 1 workforce • TAFE Queensland Hairdressing The 2016 TAFE Queensland teacher Sharan Berry was Staff Awards Winners are: Total staff (FTE) 4,173 the winner of the 2015 VET Teacher of the year Award Great Achiever Award Permanent staff 2,573 at the Queensland Training – Educator of the Year Temporary staff 1,182 Awards, recognising 16 years Vaughan Wakefield of teaching and her success TAFE Queensland North Casual staff 259 developing innovative state Great Achiever Award wide training systems that Contract staff 158 are expected to be taken up – Employee of the Year Tania Vint Permanent nationally. Her success at the 5.48%2 TAFE Queensland Brisbane separation rate State awards led her to claim runner up for the same award at Educational Leader Award the Australian Training Awards. Des Kearney • Nine TAFE Queensland staff TAFE Queensland SkillsTech Our commitment to our were recognised for their students, industry and outstanding achievement Lifetime Achievement Award Barry Wellington the further education and in the VET sector at the AUSTAFE Queensland/Northern TAFE Queensland SkillsTech training sector is evident Territory State Conference. Industry Collaboration Award across our organisation. • TAFE Queensland Skills Tech Chris Kroehn Air-Conditioning and TAFE Queensland SkillsTech Our talented educators and services Refrigeration teacher Paul staff strive to ensure the delivery of Marshall was awarded Great Business Award quality training and an exceptional a Queensland Overseas Rex Von Bibra customer experience be it on Foundation Global Connections TAFE Queensland Brisbane Bursary to undertake a campus, online or in the workplace. Great Service Award study tour of Vietnam with Renee Galvin Excellence in learning and teaching a focus on the development is at the heart of TAFE Queensland’s of online teaching and TAFE Queensland East Coast culture. An organisation-wide focus assessment resources. Great Safety Award on innovation and quality helps • TAFE Queensland English Renee Hastrich attract and retain the state’s most Language and Literacy TAFE Queensland Gold Coast experienced vocational teaching Services (TELLS) Senior workforce who are recognised by both Educational consultant (Digital Great Team Award students and employers as experts learning) Jonathan Nalder Design Studies Team in their fields. Our educators and the was awarded the Henderon TAFE Queensland East Coast excellence they bring to teaching, Prize at the 2015 New Board Chair Great Ideas Award learning and assessment is what Media Consortium Summer Duncan Neil sets us apart from our competitors. Conference in Washington TAFE Queensland Corporate D.C. The award recognises leaders who demonstrate exemplary passion in teaching, learning and innovation.

1 Workforce data based on Minimum Obligatory Human Resources Information (MOHRI) for the 2015-16 June quarter. 2 The annual permanent separation rate is a sum of the permanent separation rates for four quarters in 2015-16. The quarterly permanent separation rate is the number of permanent employees leaving the Queensland public sector divided by the number of active/paid permanents in the agency for the quarter.

16 Year in Review

Annual Report 2015-2016 17 Setting the Strategic priority Standard Define our market position

Excellence in learning Provider of choice Quality – a cornerstone of and teaching is at The revitalised TAFE Queensland tertiary education reform brand continued to perform well the heart of TAFE TAFE Queensland has engaged in 2015-16 as work continued to nationally with TAFE Directors Australia Queensland’s culture. position the organisation as the as well as other thought and policy premier provider of further education Our commitment to our leaders to develop proposals for and training in key markets. In May reform of the tertiary education and students, industry and 2016, quantitative brand research was training sector. We will continue undertaken with employers, potential the further education and to advocate for reform based on students and the general community training sector is evident raising quality standards and access which showed the TAFE Queensland as well as improving efficiency and across our organisation. brand is strong, dominating awareness connectedness across the sectors. We work in true in the category of private education and training courses for certificates Through this work, TAFE Queensland partnership with industry and diplomas. Results also showed have proposed a consistent and the community to that TAFE Queensland continues to approach to reform across the support the continuous be the most well-known provider tertiary education and training sector of further education and training to that leverages high quality, not-for- improvement of the VET Queenslanders across all stakeholder profit providers and the existing sector, our products and segments surveyed with 91% infrastructure of VET institutions to awareness (aided and unaided). deliver quality and increase efficiency our service delivery. for governments’ investment in VET and higher education. Increasingly, TAFE Queensland is TAFE Queensland strengthening its contribution to brand on show Across Australia and here in VET policy development at a state Queensland, TAFE providers have TAFE Queensland’s education and federal level, as it works with a a rich tapestry of infrastructure partnership with the V8 Supercars range of stakeholders to advocate for and delivery locations that can continued to pay dividends for the TAFE continuing improvements in the quality extend quality higher education Queensland brand and our students of further education and training. offerings through VET FEE-HELP in 2015-16. TAFE Queensland was and through an expanded higher Our commitment to delivering the a highly visual partner at both the education policy and program. highest quality training is achieved Castrol Edge 400 and the through best-practice training Coates Hire Ipswich Super Sprint, Central to quality offerings across VET models. From accelerated adult providing brand exposure not only at and higher education is establishing a apprenticeships to enterprise training the event, but also through national group of publically owned, high quality, for organisations, our programs focus and international television coverage. low risk providers with the flexibility on matching training with employment TAFE Queensland staff and students and autonomy to meet community and productivity outcomes. Whether worked across a range of areas from needs. Complementing this group on campus, online or in a workplace, catering to automotive mechanics, of providers – the cornerstone of TAFE Queensland offers high quality, demonstrating their expertise and quality – would be a range of other flexible training and education that the quality of TAFE Queensland providers supporting student choice provides individuals with the skills and courses. Importantly, the events lead and which would be quality assured confidence they need to build better to internships for students and an by increased regulation to protect and and more rewarding lives. increase in enquiries about our courses. enhance governments’ investment is skills and workforce development.

18 Innovation, creativity and design, mathematics and computer use We know that participation in VET will be fundamental skills in demand correlates directly to government vocational education across the economy. The results of this investment in training with increases TAFE Queensland provided input into collaboration have been published in a in the number of overall VET students the Commonwealth Parliamentary report titled: ‘The VET Era: Equipping occurring in 2015-16 in line with Innovation and Creativity Inquiry calling Australia’s workforce for the future increased state government investment. for direct and competitive funding of digital economy’ Nationally, funding for VET is shown $50 million to support applied and The report recognised that Australia to fluctuate significantly in the out action research projects to directly drive and Queensland’s economy is in the years as a result of concluding funding productivity and economic growth. midst of transition from historical bases agreements. TAFE Queensland has With connection to more than 60 of agriculture and manufacturing, to a advocated nationally though the per cent of Australia’s working age future dominated by service and health review of the National Partnership population, as well as many small to industries as well significant changes Agreement on Skills Reform and the medium employers, TAFE and the in the ways of working across all Commonwealth Pre-budget submission VET sector are well placed to drive occupations driven by digital disruption. process to increase funding certainty for the VET sector and to increase quality innovation in Australia’s industries. Based on the historic correlation and consistency in VET and between Case studies of TAFE Queensland’s between outputs of the VET sector different jurisdictions. experience in working with small and the skills needed in the economy, The marketisation of VET in Australia and large employers and industry TAFE has an increasingly essential has seen changes in the operating stakeholders to innovate and solve role in supplying both newly qualified environment of the sector as a problems for industry was well received entrants with the skills needed but also whole. Consumer choice has by the Inquiry Committee as evidence in upskilling the existing workforce. increased alongside significant of the role VET sector organisations TAFE Queensland’s work with quality concerns and an increase can play in improving productivity CSIRO identifies shifting student in provider lead advertising and and growth through innovation. and workforce demographics, the student attraction strategies. Using international models of need to evolve teaching and learning TAFE Queensland’s national advocacy applied research and innovation, practices of VET practitioners and new work has focused on the need for drawn from the TAFE Directors approaches to gaining skills through students to receive quality training Australia Innovation Round Table a process of lifelong learning will need and educational outcomes that are in Canberra, TAFE Queensland to underpin a future strategy for VET fit for purpose and meet the needs nationally and here in Queensland. demonstrated how targeted VET of employers. Quality measures innovation funding can complement The VET era: Equipping Australia's recommended by TAFE Queensland Australia’s existing investment in workforce for the future digital economy include clearly delineating the role and research through Universities. is available at www.tafeqld.edu.au purpose of for-profit companies and under About us. not-for-profit education and training Equipping Australia’s providers and correctly balancing regulation of the VET market and workforce for the Growing investment government funding to ameliorate risk digital economy and quality in VET to government’s investment in VET and to promote a culture of striving During the year, TAFE Queensland and During the year, TAFE Queensland for quality learning outcomes. the CSIRO examined the changing skills has also been a strong advocate profile required to support tomorrow’s for improving the effectiveness of workforce and found that service government investment into VET. orientation skills, negotiation, technology

Annual Report 2015-2016 19 Strategic priority Delivering Sharpen our industry, for Queensland employer and student focus

TAFE Queensland has a Toyota Motor Corporation State wide expansion for proud history of offering TAFE Queensland negotiated the nursing partnership continuation of an existing training enriching learning In 2015, TAFE Queensland signed a agreement in with Toyota Motor state wide agreement with Ramsay opportunities to our Corporation – extending a partnership Health for exclusive vocational that has been in place for close to students to enable them placement for a number of qualifications 10 years. TAFE Queensland also including health services and the to contribute to industry announced a new industry partnership Diploma of Nursing. This agreement to train Subaru Australia’s Queensland and the wider community. will enable students who successfully apprentices in Certificate III in complete the nursing program to go Automotive Electrical Technology Through periods of change and straight into application for a Ramsay and Certificate III in Light Vehicle reform, TAFE Queensland has graduate program in one of 18 health Mechanical Technology. maintained its commitment to deliver facilities across Queensland. The quality training to change lives. The partnership with Ramsay Health is development of strong community Queensland Rail Training significant and offers opportunities for relationships is an important part of expansion into workforce skills beyond TAFE Queensland’s overall strategy Centre of Excellence health and nursing. to deliver positive employment TAFE Queensland built on its long-term outcomes for our students and partnership with Queensland Rail (QR) TAFE Queensland give back to Queensland. to commence the development of a rail training centre of excellence at TAFE Scholarships program Queensland’s Acacia Ridge Campus. Industry sector panels The start of the 2015-16 financial year The new centre will replace QR’s saw TAFE Queensland implement In 2015-16, TAFE Queensland former training facilities at the Redbank Australia’s largest vocational education introduced Industry Sector Panels workshops and provide facilities that scholarship program, with half of (ISPs) for a number of Queensland’s support training for all types of rail and a million dollars in industry-based key industry sectors. The ISPs were a rail related training and assessment. scholarships to help students meet their series of workshops attended by key career goals. The program offers merit, stakeholders from industry, community and access and equity scholarships and teaching staff who came together Six Star International for applicants to begin or further their to review business and market Hospitality Service education at TAFE Queensland, helping intelligence, industry and student to reduce cost barriers around gaining feedback and quality indicators to Program a qualification (from Certificate III to better understand our customer December 2015 saw the graduation Advanced Diploma level). As at June needs and inform TAFE Queensland’s of the first fourteen students in TAFE 2016, 94 Queenslanders had received Product Strategy. ISPs were Queensland’s Six Star International a scholarship worth $5,000 each to convened for community services, Hospitality Service Program in pursue their study and career goals health, business, finance, justice, civil partnership with Star Entertainment. with TAFE Queensland. construction, beauty, hairdressing, The program was developed to transport and logistics, events, and specifically meet the demanding agriculture and horticulture, with future standards of the growing six star Getting back to study rollout to include nursing and travel luxury property market in Queensland. TAFE Queensland’s commitment and tourism. The success of the program saw it to the Queensland Government’s expand to the Gold Coast in 2016 in Rescuing TAFE program was displayed partnership with Star Entertainment throughout 2015-16. The program (Jupiter’s Casino), Palazzo Versace, aims to provide foundation skills Hilton International, InterContinental courses for disadvantaged students; Hotels and Village Theme Parks.

20 increase courses available under VET TAFE Queensland English Student outcomes survey in Schools; expand and improve regional support programs; subsidise Language and Literacy Our commitment to the learning second chance training opportunities; Services (TELLS) experience of our students is and create new full-time equivalent demonstrated by our positive TAFE Queensland’s English Language student support positions. results in the 2015 NCVER Student and Literacy Services (TELLS) provides Outcomes survey. Student Satisfaction During the reporting period, TAFE leadership, contract management achieved the 88% target with a score Queensland offered more than 2,700 and services to support the delivery of 88.9% and students employed subsidised training places and created of the Adult Migrant English Program or in further study fell just short 56 student support and career officers (AMEP) and Skills for Education of the 88% target with a result of (to the value of $5 million) as part of the and Employment (SEE) programs 87.1%. Of particular note, 83.8% program in locations across the state. which are funded by the Australian and 62.1% of TAFE Queensland Government Department of Education The most popular training programs students responded that they fully and Training and delivered at TAFE were in construction, automotive or partially achieved the main reason locations across Queensland. vocational preparation and small for undertaking training or improved business management. TAFE Queensland is the state’s largest their employment status as compared provider of English language and literacy to 72.2% and 57.1% of private Skilling Queenslanders services through AMEP and in 2015-16, provider students in Queensland. TAFE Queensland delivered services The survey results demonstrated for Work to 6,551 students with an average of that TAFE Queensland students 91.9% achieving eight or more learning Throughout 2015-16, TAFE are achieving better employment outcomes.2 TAFE Queensland also Queensland helped approximately outcomes or further study goals delivered services to 2,858 clients 360 disadvantaged students across and are more satisfied with through the SEE program with 97.81% the state to enhance their knowledge achieving planned outcomes. the overall quality of training and skills through the Queensland compared to those undertaking Government's Skilling Queenslanders training with private providers. for Work initiative. Skilling Project Booyah Queenslanders for Work is a suite of In 2015-16, TAFE Queensland has targeted skills and training programs Creative industries continued to work in partnership (grants) supporting marginalised with the Queensland Police Service on show Queenslanders to gain the skills, (QPS) and other state government qualifications and experience to enter In November, TAFE Queensland’s agencies to deliver training and and stay in the workforce. Working South Bank campus came alive create employment opportunities in partnership with local community with approximately 1,500 people in for young people ‘at risk’ through organisations and not-for-profits, attendance to witness the annual Project Booyah. Project Booyah TAFE Queensland secured funding creative industries showcase, CRe8 holistically addresses a young person’s for 49 training programs across a Brisbane. The event celebrated the disengagement from their family, their range of industries including business, talents of students through a program community and education to ultimately construction, aged care, community that was packed with a diverse reduce and prevent their involvement services, home and community collection of free and interactive in anti-social behaviour, substance experiences, events and exhibitions care, health services assistance, misuse, self-harm or crime. disability, retail and hospitality, that showcased the very best in horticulture and skills for work. In 2015, TAFE Queensland’s innovation, creation and imagination. involvement in Project Booyah expanded from two to ten locations across Queensland, creating opportunities for more than 150 young Queenslanders.

Annual Report 2015-2016 21 2 Combined student numbers and achievement levels across the two contract areas QN and QS. Stronger Strategic priority within Build our capability and outcomes focus

Working together as “one An audit of TAFE Queensland’s Feedback has indicated a high level Workplace Health and Safety of engagement and strong support TAFE Queensland” our Management System indicated strong for automation of the performance staff have empowered improvement across TAFE Queensland planning and development process one another to lead, with an overall audit score of 3 out of 5 in – in particular the introduction of an 2015 compared to 2.2 out of 5 in 2014. educator capability self-profiling tool. innovate and drive quality During Safe Work Month in November The tool focuses on building the capacity throughout 2015-16. 2015, more than 140 local businesses, of TAFE Queensland’s educators to employers and students attended an adapt and evolve to meet the varying electrical safety information session demands for education and training Our organisational focus on delivering hosted by TAFE Queensland and the in a highly competitive marketplace. great experiences to students and Electrical Safety Office. Learnings from this pilot are currently employers has positioned us as being captured to help inform the further Queensland’s premier provider of VET. Throughout the year, staff well-being rollout of the program across TAFE Our people have achieved this outcome initiatives included the TAFE Queensland Queensland in 2016-17. in the face of significant change in Wellness Program which focuses on our market and in our organisation. three key areas for staff – the mind, body and soul; continued review, development Employee Engagement In building the new TAFE Queensland, and implementation of best practice Survey educator capability has been a key workplace health and safety training focus, with a program of work underway Employee engagement continues to and Safety Committee operations; and to unify our approach to professional be a priority and in 2016 our staff once quarterly site inspections – Walk the Talk learning, capability development again embraced the opportunity to – by all members of the Executive and and knowledge management. participate in this ongoing improvement senior management team. initiative. We had a positive response A commitment to rate to the Employee Engagement Workforce Capability Survey – 81% for TAFE Queensland workplace safety Transformation program overall (up from 79% in 2015). TAFE Queensland is committed to The results showed a significant Throughout 2015-16, our organisation providing a safe, healthy and productive improvement across three areas continued to implement the Workforce working environment for people who targeted by TAFE Queensland for Capability Transformation program, work on, study at or visit our campuses improvement, including: information which introduces a consistent or have the potential to be affected sharing, business flexibility and Performance Planning and Development by our activities. TAFE Queensland performance planning and development approach for all parts of our workforce. strives for Zero Harm at Work, meaning with an overall job satisfaction rate TAFE Queensland’s Performance ‘no harm to anyone, any time while of 3.98 out of a 5 point scale. Planning and Development Framework at work’ and is a corporate partner of is designed to establish a high- the Zero Harm at Work program. The performance culture where individuals Recognising outstanding TAFE Queensland Workplace Health and teams take responsibility for achievement and Safety Strategic Plan 2017-19 the continuous improvement of was developed during the reporting The second state wide TAFE business processes and for their period and will provide further structure Queensland Staff Awards were held own skills and contribution. and direction to support our vision in 2016 to recognise the outstanding of Zero Harm into 2016-2017. The program has also been used to achievement and high performance of embed the Educator Capability and our staff across ten award categories We continued to make significant the Leadership Capability Frameworks that reflect our corporate values and inroads into workplace health and which guide development conversations focus on safety and service quality. After safety across the reporting period. for the whole workforce. Under the six regional finals, the award culminated program, 326 staff from both educator in a state final event on May 27 attended and non-educator roles participated in by the Honourable Minister for Training a pilot of the performance planning and and Skills Yvette D’Ath. development and capability frameworks. 22 CASE STUDY

Nursing partnership expands across the state TAFE Queensland and Ramsay Health created Australia’s first contextualised and flexible online Diploma of Nursing with workplace integration at its centre. The Enrolled Nursing programs have become an integral part of Ramsay Health’s nursing workforce planning strategy. More than 250 successful graduates have completed the program with 99% of those offered employment and a 98% retention rate two years post- graduation. In 2015 TAFE Queensland signed a state wide agreement with Ramsay Health to give TAFE Queensland exclusive vocational placement for a number of qualifications including health services and Diploma of Nursing. This initiative will enable students who successfully complete the nursing program to go straight into application for a Ramsay graduate program in one of 18 health facilities across Queensland.

Annual Report 2015-2016 23 Ahead Strategic priority of the Curve Innovate our products and services

TAFE Queensland has This engagement informs product To promote our new degree offering, development and training strategies, in September 2015 we launched been providing quality optimises and expands training a new advertising campaign which training to meet the delivery and ensures alignment of encouraged school leavers and young needs of students and TAFE Queensland master product with jobseekers to 'DO UNI DIFFERENTLY' industry needs. This year also saw a by combining uni thinking with TAFE industry for more than focus on developing technologically hands-on learning. 130 years. enhanced learning and assessment materials for vocational qualifications In 2015 TAFE Queensland Brisbane to ensure greater consistency and opened its new Higher Education Hub It’s a significant history and one that increased student engagement with located at the South Bank campus could only have been achieved through our online learning resources. to provide client services specifically adopting a program of continuous to students enrolled in university improvement and innovation of our partnership programs. products and services to ensure we Expanding our higher remain responsive to our customer’s education offering needs. This future focus includes our RedSpace: Centre for expansion of the range of learning Partnerships with universities provided Applied Research and options and educational pathways another significant opportunity for available to our students. Whether TAFE Queensland to build capacity Innovation in the classroom, the workplace or and expand the choice of higher Most innovation comes not from online, our educators are focussed education programs on offer to traditional research and development on delivering training that not only domestic and international markets. but more often from ‘the shop floor’ reflects the needs of industries and – from managers, customers and As an accredited higher education communities across Queensland now, suppliers responding to the need provider, TAFE Queensland already but also into the future. to change and adopt new ways of delivers undergraduate programs to doing things. At TAFE Queensland, address industry requirements in the our work with companies both large Enhancing our products areas of Civil Engineering and Dental and small demonstrate partnerships Prosthetics. We have expanded our TAFE Queensland continued its and industry integration that transform higher education offering in partnership strong commitment to product work practices and support workforce with the University of Canberra and development in 2015-16, supporting development and productivity. in 2016 students chose from 25 the development of 109 qualifications higher education programs across including two higher education To formalise TAFE Queensland’s a number of study areas including products. TAFE Queensland’s Product role in driving innovation, in 2015 degrees in arts, acting, fashion, Strategy uses an industry based we established TAFE Queensland gaming, music, visual arts, screen approach bringing together industry, RedSpace: Centre for Applied and media, business, dental services, employers and educators to contribute Research and Innovation to enable digital design, civil engineering, web to industry specific training priorities. and proactively ‘name and claim’ our design and graphic design and In 2015-16, a range of industry innovation and applied research activity. production, and masters programs engagement events were held across in professional accounting and community services, health, business, business management. finance, justice, civil construction, beauty, hairdressing, transport and logistics, events, and agriculture and horticulture.

24 TAFE Queensland RedSpace: provides TAFE at School a new service to business, industry and communities through ARIES – TAFE at School provides secondary Applied Research, Innovation and school students with a range of Entrepreneurship Services. TAFE opportunities to undertake TAFE study Queensland RedSpace: works as part of their secondary studies. with staff to support business and In 2015-16, the program undertook an educational delivery innovation and engagement phase, presenting TAFE workforce capability building. It Queensland to secondary schools will also enhance student learning as “one TAFE” and consolidating our outcomes through the cultivation activity in this market. In the 2015 study of entrepreneurial and innovation year, almost 14,000 secondary school capabilities as they engage in projects students participated in a TAFE at with industry as well as drive applied School program. research and expertise in specific areas of research specialisation. Looking forward, the focus of TAFE at School programs will be to encourage Year 9 career program pilot students to further their TAFE studies post-school – either through a direct TAFE Queensland has successfully pathway into a diploma, degree, piloted a career program for year apprenticeship or traineeship. nine students.

The #DiscoverMyFuture career Connecting students program which commenced in May, with learning was offered to year nine students across nine schools in 47 classes, Our Learning Management System engaging 1,275 students in East Coast – Connect – continues to provide an and South West regions. integrated learning environment to facilitate online, blended and mobile The program aimed to enable students methods of delivery with more than to make informed choices for their 51,000 students and 1,271 educators future through a guided process which using the system at the end of 2015- facilitates investigation of job suitability 16. The recent integration of Connect and selection, career aspiration with Adobe Connect Online Rooms is discussions, the use of career planning providing access to virtual classroom tools, and the identification of career facilities, supporting greater learner pathways and possible study options. engagement and improving accessibility Providing increased encouragement for rural and remote students. and support is a critical step towards engaging young students towards a career and to help with their employability post-school. Feedback about the pilot program from students, high schools and #DiscoverMyFuture educators has been overwhelmingly positive, with other schools now approaching TAFE Queensland to arrange sessions in term three and four.

Annual Report 2015-2016 25 A Focus Strategic priority on Growth Embed sustainability

TAFE Queensland’s Throughout 2015-16, TAFE The ICT program of work also Queensland has worked with the included implementation of a purpose is to support the Queensland Department of Education dedicated Aurion BPOS payroll growth of Queensland’s and Training and other stakeholders to solution. TAFE Queensland is now economy by providing develop a 10-year Strategic Training responsible for managing its own Infrastructure Plan for state training payroll functions and continues high quality education and assets to ensure that our customers to work with Aurion to improve training in Queensland and continue to have access to high the functionality of the solution. quality training opportunities across target markets beyond. the state. As part of the development The ICT Support Renewal project of the Plan, in the first half of 2016, is replacing TAFE Queensland’s Throughout 2015-16, TAFE TAFE Queensland CEO Jodi Schmidt current outsourced ICT services and Queensland has made significant presented at a series of stakeholder support arrangement to one that progress against its ambitious strategic consultation sessions across the state, better aligns with future business agenda and has continued to deliver hosted by the State Government, to needs and provides flexible service strong financial results despite some discuss the future use of Queensland’s delivery. The new ICT services and significant shifts in market share. training assets. In developing the Plan, support arrangement will not only it became clear that the condition and replace the current services, it will A changing external landscape has, suitability of Queensland’s training also extend the hours of service and in turn, driven change within our assets vary across the state, raising provide a platform for increasing organisation and the hard work of issues around accessibility and the our engagement with customers. our people has resulted in a leaner ability to deliver flexible learning more responsive business, better opportunities that address the needs Student Management positioned to meet the diverse needs of a rapidly changing economy and of industries and communities across the expectations of industry and System Renewal project our geographically disparate footprint. students. The Plan aims to revitalise The TAFE Queensland Student Our continual program of Queensland’s training assets to allow Management System (SMS) Renewal diversification, particularly our TAFE Queensland to continue to deliver project will replace the current student expansion into international training that creates jobs and supports management system and provide and online markets, will further the state’s economic prosperity, both additional functionality, business improve our financial sustainability now, and into the future. process improvement opportunities in a highly competitive and, and reduced operational costs. at times, volatile market. Business systems While not realising the benefits from the SMS project in the timeframe renewal originally planned, the introduction Strategic Training During the reporting period, TAFE of a new SMS remains a strategic Infrastructure Plan Queensland progressed a program priority of the organisation. TAFE Queensland remains committed to TAFE Queensland is committed to of work associated with the renewal of key enterprise level ICT systems delivering a new system that meets supporting Queensland communities the needs of staff and students. and industry to access the skills they and services. The new TAFE need to prosper – both now and into Queensland financial system was the future. While our broad delivery successfully implemented in July footprint and focus on innovation have 2015 with further enhancements seen us expand our range of learning including an enterprise budgeting options – especially in the online tool, an accounts payable automated learning space – campuses still play invoice scanning solution, and the a vital role in the delivery of training. Aurion HR sub-ledger integration implemented throughout 2015-16.

26 TAFE Queensland Strengthening VET International in China TAFE Queensland continues to TAFE Queensland signed a strengthen our international presence Memorandum of Understanding in and the investment in the expansion May with the Shanghai Commercial and consolidation of our international Accounting School, where TAFE business has paid dividends. Queensland will conduct training with Chinese accounting students. In 2015-16, the newly reorganised A second MoU was signed by TAFE TAFE Queensland International Queensland with the Shandong 3 generated $26 million in international Technician Institute, to formally revenue from inbound international begin negotiations to establish a student enrolments, offshore delivery teacher training centre in China. and consultancy services. During These agreements will see TAFE 2015-16, TAFE Queensland had Queensland’s high-quality expertise 4 5,144 international students in on the ground in China, strengthening VET (both offshore and onshore); education and training relationships English Language Intensive Courses between Queensland and China. for Overseas Students (ELICOS); higher education; and other non- In addition, TAFE Queensland award programs. Students from 84 secured 13 international partnerships countries chose to study with TAFE at the Hubei Higher Education Fair Queensland across the reporting in May. Universities and vocational period, with China, South Korea, colleges from China’s Hubei province Japan, India, Papua New Guinea, visited Brisbane to promote global Phillipines and Taiwan emerging mobility programs and cooperative as the main countries of origin. partnerships with Queensland training providers. Several of the visiting In 2015-16, country agent Chinese institutes formalised their representatives were established in intentions to develop collaborative key market areas including China, partnerships with TAFE Queensland, India, Hong Kong, Indonesia, Brazil including eight universities and five and the Philippines providing our technical colleges. offshore clients and prospective students with local support, while strengthening cultural awareness and brand recognition.

3 EOY 2015-16 forecast as at 31 May 2016, the latest data currently available. 4 Close of study unique student count for 2015-16 derived from the WF2, WF3, WF5 and WF8 fund source codes (excludes WF6-APTC).

Annual Report 2015-2016 27 Governance TAFE Queensland Organisational Structure

28 From left to right: Peter Price, Anita Brown, Darrell Butcher, Warren Tapp (Board Chair), Vivienne Mallinson, Peter Dowling, Elizabeth (Beth) Honeycombe

TAFE Queensland Board

TAFE Queensland’s During the reporting period, the Board • Quality of assessment in VET: This held 12 meetings and travelled to discussion paper advocated for a experienced Board Caboolture, Bracken Ridge, Kingaroy, risk-based approach to regulation of continues to set a clear Bundaberg and Townsville to connect assessment and the positioning of strategic direction for the with employers, industry, community quality at the centre of ongoing reform members and staff to better of assessment practices. organisation as TAFE understand local training needs • Redesigning VET FEE-HELP: This now and into the future. Queensland positions discussion paper identified key itself as the state’s During the year, the Board has also principles for reform of the program, played a key role in guiding the further including a provider classification premier provider of further development of TAFE Queensland’s process to support a risk-based education and training as safety culture, risk management approach to its ongoing management. practices, financial sustainability and well as a commercially • Higher Education Reform: TAFE strategic positioning in the highly Queensland’s Driving Innovation, successful but community competitive VET market. Fairness and Excellence in Australian minded organisation. During a time of significant policy flux Higher Education paper provided the within the sector, the TAFE Queensland Australian Government with a clear The functions of the TAFE Queensland Board is developing a strong reputation mechanism to improve student choice, Board are established under section as a leader of VET sector policy. access and fairness while maintaining 13 of the TAFE Queensland Act 2013. This is illustrated through the Board quality within the sector. During 2015-16 the Board, comprised Chair’s leadership of the TAFE Chairs The TAFE Queensland Board has now of the Chair and six members, Australia Group and through TAFE established a sound platform for ongoing met their legislated requirements Queensland’s contribution to a number growth through its ability to engage with through the development of the of key consultation processes over the and influence policy within the sector. This TAFE Queensland Strategic Plan last 12 months. Many of these have objective will continue to be a key focus of 2015-19 and submission of the TAFE been discussed in other parts of this the Board throughout 2016-17 and stand Queensland Operational Plan 2015-16 document with others including: to provide ongoing benefit to both TAFE to the Minister for Training and Skills. • Pre-budget submission: Provided Queensland and the sector more broadly. Throughout 2015-16, the Board has to the Australian Treasury, this been actively engaged with industry submission outlined the key and key stakeholders across the state. priorities for the VET sector from Annual Report 29 TAFE Queensland’s perspective. 2015-2016 Board Members

Mr Warren Tapp Chair Mr Warren Tapp is the Chair of the TAFE Queensland Board and is also the Chairperson of TAFE Chairs Australia, a body contributing to the national discussion about vocational education and training and TAFE. He is also a member of the Queensland University of Technology (QUT) Council and was the Chairperson of the former Southbank Institute of Technology Board and a member of the TAFE Reform Board. He has been a Non-Executive Chairman of eight boards across a range of industries. He was the founder and Managing Director of his own board consulting company and has served as a lecturer for the Australian Institute of Company Directors on all corporate governance subjects locally and nationally.

Mr Peter Price Mr Peter Dowling Ms Elizabeth (Beth) Deputy Chair Chair Audit Finance and Risk Honeycombe Management Committee Member Mr Peter Price has been the Executive General Manager, Asset Management Mr Peter Dowling is an Ms Elizabeth (Beth) Honeycombe is for Energex since July 2012 with Accountant (FCPA and FCA) a former Burdekin Shire Mayor and responsibility for Energex’s annual and Company Director. He is a Councillor and a qualified teacher. program of work, overall accountability former Ernst and Young Tax and She was a former Chair of the for safety and environment and Business Advisory Partner. Queensland Local Government and development of technical standards. He was made a Member of the Arts Funding Committee and former This role also includes the provision Order of Australia (AM) in the member of the Queensland Local of technical and safety advice to the General Division for services to Government Grants Commission, the Energex Board through the Network accountancy and the community. Auctioneer and Agents Committee, Technical Committee. Prior to this He has served on Government Queensland Department of Equity role he was the Executive General and private sector boards over a and Fair Trading and the Queensland Manager overseeing programming, 15 year period. His current Board Women's Health Advisory Committee. procurement and services including positions include CPA Australia, She is extensively engaged in local network performance. He has a strong Healthdirect Australia, Metro South and regional community activities background in Queensland's skills Hospital and Health Services Board, through her roles on a range of boards and training sector as Chairperson of Workcover Queensland and Lexon and committees in areas including Energy Skills Queensland, a member Insurance. He also holds Audit business, education, health, training, the TAFE Reform Board and (former) Committee roles as Chair or Member electricity and the performing arts. Chairperson of Skills Tech Australia. on a number of local government councils and State government departments. He is also the Honorary Queensland Consul for Botswana.

30 Ms Anita Brown Ms Vivienne Mallinson Mr Darrell Butcher Chair Remuneration and Member Member Nominations Committee Ms Vivienne Mallinson was a Company Mr Darrell Butcher is a highly Ms Anita Brown is an experienced Director and Secretary of the experienced business person with director, executive manager, BUSY Inc. Board and an Executive over 40 years’ experience in business governance and legal professional, Director (consultant) for BUSY Inc. planning and development, personnel having worked across a broad trading as BUSY At Work. She has management, strategic oversight and range of environments and industries over 30 years' experience in the marketing. Originally a motor mechanic in Australia and internationally. education, training and employment by trade, during his career Darrell She holds bachelor degrees in industry having undertaken studies turned his small automotive business Accountancy and Law, a masters in a Bachelor of Business (Human in Redcliffe into one of the largest Ford degree in Law and certificates in Resource Management) and holding dealer operations in Australia and Risk Management and Governance a teaching qualification. She is a one of Queensland’s largest Toyota Practice and Administration. Ms Brown consultant for the National Association dealers. The Group employed over is also a member of the REIQ Board of Australian Apprenticeships Centres 500 permanent full-time staff with and member of its Finance, Audit (NAAAC) and is on the Advisory Board an annual turnover exceeding $500 and Risk Committee, and director of of the Australian Apprenticeships million. Darrell served as an Alderman a number of private companies. She Training Information Service. Until with the Redcliffe City Council for six is the former General Counsel and her retirement, she was the CEO years and was Chair of the Brisbane Company Secretary for Transfield and Business Training Coordinator of North Institute of TAFE Council for Services Americas and Executive BUSY Inc trading as BUSY at Work. 18 years. Darrell is a recipient of the General Manager (Legal and Risk) and Federal Government’s Centenary Company Secretary for Easternwell Medal for his services to technical Group Pty Ltd. Since 1998 she has and further education and to the been a Solicitor of the Supreme Court automotive industry and is a regular of Queensland and the High Court speaker at various charitable, sporting of Australia and a Solicitor/Barrister and business events. Darrell sold his in the Australian Capital Territory and business group and retired in 2001. has worked for a number of top tier law firms. She has also worked as an Accountant, Commercial Director and owned her own business. Anita currently provides management, board, corporate governance, risk management and company secretarial consulting services to a broad range of industries in Australia and internationally.

Annual Report 2015-2016 31 Committees

Audit Finance and this Committee and the Board, including • review of fraud management the establishment and monitoring of • review of business continuity Risk Management mitigation strategies. Committee and disaster recovery processes The internal audit function is managed and procedures. This Committee advises the Board through this Committee and is used to TAFE Queensland’s risk management on the quality of external operating determine whether TAFE Queensland’s and internal audit activities are cognisant controls, reviews financial risks, internal risk management controls and of key legislative requirements, such as and external audit functions, financial governance processes, as designed the TAFE Queensland Act 2013 and the statements and risk management. and represented by management, is Financial Accountability Act 2009. The adequate and functioning in a manner In 2015-16, the Committee focussed on activities were also undertaken with due to ensure: the ongoing review of the organisation’s regard to the Queensland Treasury Audit Risk Management Framework working • risks are appropriately Committee Guidelines 2012. closely with the internal auditors, identified and managed The members of the Audit, Finance PricewaterhouseCoopers and, in and Risk Management Committee for conjunction with the Queensland • interaction with the various 2015-16 were Mr Peter Dowling (Chair), Audit Office, developing the program groups involved with governance Mr Peter Price and Mr Darrell Butcher. of audit work for 2015-16. occurs as needed • significant financial, managerial, The Committee also continued to and operating information is Remuneration and provide guidance and significant input accurate, reliable, and timely into Workplace Health and Safety Nominations Committee strategies with the goal of continuous • employees’ actions are in The role of this Committee is to improvement and implementation of a compliance with policies, provide advice on appointments, consistent safety culture throughout the standards, procedures, and retirements and removal of Board organisation. TAFE Queensland’s risk applicable laws and regulations members and to establish a process management framework includes policy • resources are acquired for the regular evaluation of the Board, and procedures that are based on the economically, used efficiently, Directors and senior staff. approach that TAFE Queensland will be and are adequately protected risk aware, responsive, agile and resilient The Committee also advises on and allow for the review and addressing • programs, plans and the appointment and remuneration of risks that have the potential to effect objectives are achieved of the CEO. the strategic and operational objectives • quality and continuous During the year, this Committee of our organisation. improvement are fostered in played a significant role in the Chief TAFE Queensland’s governance TAFE Queensland conducts risk Executive Officer’s performance review and internal control process management activities in accordance for 2015-16, facilitation of an external with the internal standard for risk • significant legislative or TAFE Queensland Board Performance management. This approach is regulatory issues impacting TAFE Evaluation and the appointment of focused on four key risk attributes: risk Queensland are recognised the Director, Brand, Marketing and leadership, knowledge management, and addressed properly. Communication. governance and assurance, along with The specific scope of work is set resources, tools and processes. In addition, the Committee provided by the annual audit plan which for guidance and input into the High The Board has established risk 2015-16 included: Performance Scheme including appetites that guide the decision making development of the Chief Executive • review of purchases and accounts frameworks across the organisation Officer’s KPIs and Performance payable processes and quarterly reviews of known and Management Framework. emerging risks are undertaken by • review of asset management the TAFE Queensland Executive, practices The members of this committee in 2015-16 were Ms Anita Brown (Chair), • review of risk management Ms Elizabeth Honeycombe and 32 framework Ms Vivienne Mallinson. Performance measures

2015-16 2015-16 TAFE Queensland Performance Measure Target/estimate Actual

Proportion of all attempted competencies successfully completed 90% 89%

Student post training outcome (employed or in further study after training) 89% 87%

Proportion of graduates satisfied with the overall quality of their training 89% 89%

Proportion of employers satisfied with the overall quality of training 85% 91%

Average cost per competency successfully completed ($) $767 $811

89% 87% $767 $811

Successful competency Graduates employed or in further study The proportion of all attempted The percentage of students achieving competencies successfully completed a post training outcome (employed or was 89% which is on par with in further study after training) was 87% 2014-15 results and indicates that Average cost which is on par with 2014-15 results. nearly 9 out of 10 competencies per per competency student were successfully achieved. The average cost per competency was $811 and is behind the target of $767. Performance against this measure is impacted by a % % number of variables, including 89 91 volume of training activity, type and duration of competencies delivered, class sizes and general cost increases Student satisfaction Employer satisfaction (wage and CPI increases).

The proportion of graduates The proportion of employers satisfied satisfied with the overall quality of with the overall quality of training their training was 89%, a positive was 91%, significantly better than result which meets 2015-16 targets the target of 85%. and surpasses 2014-15 results.

Annual Report 2015-2016 33 Governance – other reporting requirements

Workforce Planning The new performance planning While attracting good staff is important, and development process, retaining those we have is equally and Performance which emphasises performance vital. To do this TAFE Queensland has Our annual Employee Engagement conversations and alignment to the identified our employee brand and Survey continues to provide valuable TAFE Queensland strategic plan, is value proposition and is embedding feedback from staff to inform our being introduced to all staff across practices across TAFE Queensland workforce strategy. We had a positive TAFE Queensland. to align with this. response rate to the 2016 Employee Our Leadership Capability Framework The safety of all our employees, Engagement Survey – 81% for TAFE is being used by TAFE Services staff students and industry partners Queensland overall – and a good in their performance development who visit our sites continues to be response rate across all regions. conversations, as well as guiding the a focus. Recent Workplace Health To ensure we remain the market leader leadership and coaching development and Safety (WHS) audit results in high quality education and training, framework for TAFE Queensland. To indicate a significant improvement TAFE Queensland’s workforce strategy further support strategic execution, across TAFE Queensland. Our vision focuses on seven key areas: senior leaders across TAFE Queensland of Safety Leadership: everybody have participated in a series of planning safe at work, now takes a holistic, • flexible employment workshops, including conversations strategic approach to WHS to • improved teacher quality about effective leadership, which has focus on embedding a safety provided the foundations of strong culture across TAFE Queensland. • strong leadership strategy execution. • performance driven Our staff awards have now been Employee Relations • agile workforce embedded across TAFE Queensland, Framework with the second state awards ceremony • capable workforce further enhancing our ability to reward The TAFE Queensland workforce • strong attraction and high achievers. The TAFE Queensland currently operates under a number retention strategies. High Performance Scheme is also in of industrial instruments: place, which rewards senior leaders We have developed a number of • the TAFE Teachers Award – State who achieve stretch targets. programs across our workforce 2012 and the Senior Colleges in line with these seven priorities. Flowing from the success of last Awards – State 2012 as well as the year, the 2016 Innovation Hub has Department of Education, Training In developing a flexible environment developed an understanding of network and Employment TAFE Educational for our workforce, TAFE Queensland leadership and generated a number of Employees Certified Agreement has integrated new and emerging fast to implement, low cost innovative 2012 – for teaching staff. education roles as our educational ideas. Regional innovation campaigns practices evolve. • the Public Service Award – State now run regularly, with a network of 2012, the Employees of Queensland Our Educator Capability Framework, Innovation Officers sharing ideas and Government Departments (Other which guides our educational successes across TAFE Queensland. than Public Servants) Award – State delivery staff in their development, 2012, the Building Trades Public Network leadership is now has been introduced and is being Sector Award – State 2012 and the becoming part of the vernacular used in the new performance Engineering Award – State 2012 of TAFE Queensland, with leaders planning and development process. as well as the State Government understanding the need to share Departments Certified Agreement and use strengths with each other 2009 – for non-teaching staff. to be an effective leader.

34 • TAFE Queensland Award – State In addition, the planning processes of An Information Security Committee has 2016 – no employees are covered TAFE Queensland are congruent with been established with oversight of the by this Award until a new Certified the public sector ethics principles and security plan and its role extends to the Agreement is made. incorporate integrity and accountability review and remediation of significant into our strategies, objectives and security incidents. • Individual Employment Agreements actions. Integral to the framework of – for executive staff. our employee performance agreements The organisation has invested in is the requirement that our behaviours business intelligence technologies and Public Sector Ethics incorporate the ethical priorities of the is building information assets within a corporate data warehouse. These TAFE Queensland is defined as a Public Sector Ethics Act 1994. are used to review organisational Queensland public service agency performance, identify trends or for the purposes of the Public Sector Information Management activities which may improve business Ethics Act 1994. For this reason, there efficiency and provide a basis for is an obligation to comply with the and Record Keeping informed decision making. A series of Code of Conduct for the Queensland TAFE Queensland uses HP Records training sessions and workshops have Public Service. Manager as its core EDRMS been delivered to develop business (Electronic document and records All TAFE Queensland employees are intelligence skills within key areas of the management system) to manage given access to appropriate education TAFE Queensland workforce. Further compliance with the requirements and training about public sector ethics training sessions are planned in 2016- of the Public Records Act 2002. as part of the TAFE Queensland 17 to reinforce and extend this skillset. Additionally the EDRMS delivers Orientation program (which contains operational efficiencies for the storage, TAFE Queensland has participated a mandatory unit on the Code of search and retrieval, and retention as part of a joint venture with other Conduct.) This unit is available online and/or disposal of records. education and training sector public to all employees at all times and can authorities to develop a combined be used at regular intervals during The system was launched in May Education and Training Retention their employment as required. 2015 with 75,000 records added by and Disposal Schedule. If approved July 2016, an increase of 83% over Working with TAFE: Conduct, Ethics by Queensland State Archives, this the initial 90,000 records imported and Performance Policy is the basis schedule will replace our current into the system. of the TAFE Queensland framework Queensland Disposal Authority Number 588 (QDAN 588) schedule. of administrative human resource TAFE Queensland is performing a procedures and management review of its Information Management New record keeping policies and practices. These have proper regard Framework to confirm compliance and procedures have been drafted for to the ethics principles and values of consistency with whole-of-government implementation in 2016-17 with the TAFE Queensland. There is a strong policies and standards and to provide current policy principles reinforced alignment with the Code of Conduct staff with procedural clarity on the through the staff induction program for the Queensland Public Service. application of the policy framework. where staff are made aware of their A major focus of the review is responsibilities to keep accurate Information Security policy and planning. and concise records.

Annual Report 2015-2016 35 Financial statements 2015-16

Contents

Statement of Comprehensive Income 37 Statement of Financial Position 38 Statement of Changes in Equity 39 Statement of Cash Flows 40

1. Corporate entity 41 2. Basis of preparation 41 3. Joint arrangements 42 4. Sales of goods and services 43 5. Grants and contributions 43 6. Employee expenses 44 7. Supplies and services 45 8. Other expenses 45 9. Cash and cash equivalents 46 10. Receivables 47 11. Property, plant and equipment 48 12. Intangible assets 50 13. Payables 52 14. Employee benefits 52 15. Other current liabilities 52 16. Commitments for expenditure 53 17. Contingencies 54 18. Financial instruments 54 19. Budget vs actual comparison 57 20. Key management personnel 60 21. New and revised accounting standards 64 22. Prior period adjustments 66 23. Events occurring after balance date 66

36 Statement of Comprehensive Income for the year ended 30 June 2016

2016 2015 Notes $'000 $'000 Income Sales of goods and services 4 270,269 246,966 Grants and contributions 5 360,788 448,178 Other income 14,376 14,327 Total income 645,433 709,471

Expenses Employee expenses 6 389,269 394,064 Supplies and services 7 225,586 214,966 Grants and subsidies 1,227 1,453 Depreciation and amortisation 7,001 8,029 Impairment of non-current assets 7,022 - Other expenses 8 3,368 2,893 Total expenses 633,474 621,404

Operating profit 11,959 88,067

Other Comprehensive Income Increase (decrease) in asset revaluation surplus 68 - Total Other Comprehensive Income 68 -

Total comprehensive income for the year 12,027 88,067

The accompanying notes form part of these statements.

Annual Report 2015-2016 37 Statement of Financial Position for the year ended 30 June 2016

2016 2015 Notes $'000 $'000 Current assets Cash and cash equivalents 9 231,196 222,256 Receivables 10 82,883 81,590 Inventories 663 571 Other current assets 7,966 8,805 Total current assets 322,709 313,223

Non-current assets Property, plant and equipment 11 28,668 6,332 Intangible assets 12 15,448 16,739 Total non-current assets 44,116 23,071

Total assets 366,825 336,293

Current liabilities Payables 13 39,233 39,852 Employee benefits 14 21,953 14,390 Other current liabilities 15 36,751 42,722 Total current liabilities 97,937 96,964

Non-current liabilities Total non-current liabilities - -

Total liabilities 97,937 96,964

Net assets 268,888 239,329

Equity Contributed equity 168,795 151,263 Retained earnings 100,025 88,067 Asset revaluation surplus 68 - Total equity 268,888 239,329

The accompanying notes form part of these statements.

38 Statement of Changes in Equity for the year ended 30 June 2016

Asset Retained Contributed Revaluation TOTAL Earnings Equity Surplus $’000 $’000 $’000 $’000 Balance at 1 July 2014 - - - - Net transfers in/(out) from other - - 151,263 151,263 Queensland Government entities Operating profit 73,820 - - 73,820 Net effect of prior year adjustments 14,246 - - 14,246 Balance at 30 June 2015 88,067 - 151,263 239,329

Net transfers in/(out) from other Queensland - - 17,532 17,532 Government entities Operating profit 11,959 - - 11,959 Increase in asset revaluation surplus - 68 - 68 Balance at 30 June 2016 100,025 68 168,795 268,888

The accompanying notes form part of these statements.

Annual Report 2015-2016 39 Statement of Cash Flows for the year ended 30 June 2016

2016 2015 Notes $'000 $'000 Cash flows from operating activities Sales of goods and services 284,360 257,311 Grants and contributions 357,799 416,196 GST input tax credits from ATO 19,419 19,197 Interest received 6,555 4,745 Other receipts 6,773 9,609 Employee expenses (386,521) (386,990) Supplies and services (252,464) (247,240) GST remitted to ATO (6,893) (8,776) Other payments (2,555) (2,099) Net cash provided by operating activities 9 26,473 61,954

Cash flows from investing activities Sales of property, plant and equipment 82 20 Payments for property, plant and equipment (2,317) (2,087) Payments for intangibles (15,297) (13,096) Investments redeemed - 25,871 Net cash used in investing activities (17,532) 10,707

Net increase in cash and cash equivalents 8,940 72,662 Cash and cash equivalents at beginning of financial year 222,256 149,594 Cash and cash equivalents at end of financial year 9 231,196 222,256

The accompanying notes form part of these statements.

40 Notes to and forming part of the financial statements for the year ended 30 June 2016

1. Corporate Entity New accounting standards early hierarchy, the fair value measurement adopted and/or applied for the first is categorised in its entirety in the TAFE Queensland was established time in these financial statements are same level of the fair value hierarchy as a statutory body under the TAFE outlined in Note 21 New and Revised as the lowest level input that is Queensland Act 2013 on 1 July 2013. Accounting Standards. significant to the entire measurement. TAFE Queensland is a not for profit The financial statements are authorised Further information about the entity governed by an independent for issue by the Chairperson, assumptions made in measuring board. TAFE Queensland operates TAFE Queensland Board, the fair value is included in Note 11 state-wide training centres managed Chief Executive Officer, and Chief Property, Plant and Equipment and through five regions including Financial Officer at the date of signing Note 18 Financial Instruments. Brisbane, Gold Coast, East Coast, the Management Certificate. South West and North, and SkillsTech, (c) Presentation a trade training registered training (b) Measurement of fair values Items included in the financial organisation in metropolitan Brisbane. TAFE Queensland’s accounting statements are measured using the It offers a range of high level vocational policies and disclosures require the currency of the primary economic qualifications, associate degrees, measurement of fair values for non- environment in which the entity university pathways and articulation financial assets relating to property, operates (‘the functional currency’). arrangements in key industries. TAFE plant and equipment and financial The financial statements are presented Queensland also operates the Australia instruments. Fair value is defined as in Australian dollars, which is Pacific Technical College (APTC), the price that would be received to sell TAFE Queensland’s functional and providing education and training an asset or paid to transfer a liability in presentation currency. services in the Pacific Islands. an orderly transaction between market Foreign currency transactions are participants at the measurement date. 2. Basis of Preparation translated into the functional currency All assets and liabilities for which fair using the average exchange rates (a) Statement of compliance value is measured or disclosed in the prevailing each month in which financial statements are categorised transactions occur. Foreign exchange These financial statements are general within the following fair value hierarchy gains and losses resulting from the purpose financial statements which based on the inputs used in the settlement of such transactions and have been prepared in accordance with: valuation techniques as follows: from the translation of monetary assets • applicable Australian Accounting • Level 1: quoted prices in active and liabilities denominated in foreign Standards (AASBs) and markets for identical assets or currencies at year end exchange Interpretations liabilities. rates are generally recognised in profit • Financial Accountability Act 2009 or loss. Other than cash and cash • Level 2: inputs other than quoted equivalents, TAFE Queensland holds • Financial and Performance prices included in Level 1 that are no financial assets and liabilities in Management Standard 2009 observable for the asset or liability, foreign currencies. either directly or indirectly. • Queensland Treasury’s Financial Amounts included in the financial Reporting Requirements for • Level 3: inputs for the asset statements have been rounded to Queensland Government Agencies or liability that are not based the nearest thousand dollars, unless for the year ended 30 June 2016 on observable market data disclosure of the full amount is (unobservable inputs). specifically required. • Statutory Bodies Financial Arrangement Act 1982 If the inputs used to measure the fair Comparative information has been value of an asset could be categorised restated where necessary to be • other authoritative pronouncements. in different levels of the fair value consistent with disclosures in the current reporting period.

Annual Report 2015-2016 41 Notes to and forming part of the financial statements for the year ended 30 June 2016

(d) Use of estimates and judgements 3. Joint Arrangements During 2016-17 TAFE Queensland will partner with three other entity partners The preparation of financial Joint arrangements exist when two or in the operation of the Sunshine Coast statements requires management to more parties have joint control. Joint Health Institute (SCHI). SCHI will make estimates, judgements, and control is the contractually agreed operate as a joint arrangement under assumptions that affect the application sharing of control of an arrangement, a joint venture agreement, based at of accounting policies and the reported which exists only when decisions the new Sunshine Coast University amounts of assets, liabilities, income, about the relevant activities require Hospital. The primary aims of SCHI are and expenses. The estimates and the unanimous consent of the parties to advance the education of trainee associated assumptions are based on sharing control. medical officers, nurses, midwives, and historical experience and other factors Until 30 June 2015 APTC operated other health care professionals, while that are considered relevant. Actual under a consortium arrangement with providing outstanding patient care results may differ from these estimates. Box Hill Institute and GRM International and extending research knowledge. Estimates and underlying assumptions Pty Ltd, providing education and Each partner will have equal rights and are reviewed on an ongoing basis. training services in the Pacific Islands. obligations to the assets, liabilities, Revisions to accounting estimates are In the financial year to 30 June 2015 revenue and expenses of SCHI. As the recognised in the period in which the this arrangement was accounted arrangement has not yet commenced, estimate is revised and in any future for as a joint operation under AASB there are no financial impacts for TAFE periods affected. 11 Joint Arrangements where TAFE Queensland for the period ending 30 In particular, information about Queensland included its share of the June 2016. significant areas of estimation, revenues and expenses arising from uncertainty and critical judgements the operation in accordance with the in applying accounting policies that terms of the agreement. From 1 July have the most significant effect on the 2015 the contract for the delivery of amount recognised in the financial services at APTC was controlled solely statements are described in the by TAFE Queensland and accounted following notes: for in its entirety in TAFE Queensland’s • Note 10 Receivables financial statements. • Note 15 Other current liabilities

42 Notes to and forming part of the financial statements for the year ended 30 June 2016

2016 2015 4. Sales of Goods and Services $'000 $'000 Student fees and charges 162,654 153,840 Fees for training services 104,656 87,953 Sales of goods and ancillary services 2,959 5,173 Total 270,269 246,966 Sales of goods and services are recognised as revenues when the revenue has been earned and can be measured reliably with a sufficient degree of certainty. This involves either invoicing for related goods or services and/or the recognition of accrued revenue.

5. Grants and Contributions Queensland government grants and contributions –– Queensland government subsidised training 141,235 159,477 –– VET Purchasers grant 134,000 134,019 –– Rental support grant 40,526 52,621 –– Corporate operating grant 34,158 33,925 –– Information technology implementation grant - 24,899 –– Voluntary separation payments reimbursement - 23,458 –– Other grants and contributions 4,017 11,120 Commonwealth government grants and contributions 3,389 5,128 Other donations, sponsorships, and contributions 3,463 3,531 Total 360,788 448,178 Grants, contributions, donations and gifts received that are non-reciprocal in nature are recognised as revenue on receipt or when it is probable that the economic benefits will flow to TAFE Queensland and the value of that benefit can be reliably measured. Grants received that are reciprocal in nature are recognised over the term of the arrangements. TAFE Queensland’s cost disadvantage in the market is recognised by the VET Purchaser’s grant, which funds TAFE Queensland for the differential staffing costs between public and private training providers. Queensland government subsidised training relates to the component of course fees that is received for eligible students from the Queensland government. In 2014-15 these subsidies were reported as sales of services.

Annual Report 2015-2016 43 Notes to and forming part of the financial statements for the year ended 30 June 2016

2016 2015 6. Employee Expenses $'000 $'000 Salaries and wages 273,068 264,690 Annual leave 28,052 27,127 Long service leave 6,576 6,469 Employer superannuation contributions 37,116 36,483 Other employee benefits 22,629 41,556 Payroll tax and fringe benefits tax 16,476 17,087 Other employee-related expenses 5,353 652 Total 389,269 394,064 The number of employees as at 30 June 2016, including both full-time employees and part-time employees measured on a full-time equivalent basis (reflecting Minimum Obligatory Human Resource Information (MOHRI)) is 4,174 (4,015 full time equivalent 2014-15).

Salaries, wages and sick leave Leave Central and Long Service payments to be made in respect of Leave Central Schemes. A levy is services provided by employees up Salaries and wages due but unpaid payable to these schemes to cover to the reporting date. Consideration at reporting date are recognised as the cost of employees’ annual leave is given to the expected future wage a liability at current salary and wage (including leave loading and on- and salary levels, experience of rates. Prior history indicates that costs) and long service leave. These employee departures, and periods of on average, sick leave taken each levies are expensed in the period in service. Expected future payments are reporting period is less than the which they are payable. Amounts discounted using marked yields at the entitlement accrued. As sick leave is paid to employees for annual leave reporting date on government bonds non-vesting, a liability for unused sick and long service leave are claimed with terms to maturity and currency leave entitlements is not recognised. back from the schemes quarterly in that match, as closely as possible, An expense is recognised for this leave arrears. TAFE Queensland does not the estimated future cash outflows. when taken. recognise a provision for annual leave Superannuation schemes Annual leave and long service leave or long service leave in the financial statements as these liabilities are TAFE Queensland contributes to the TAFE Queensland employs people held, and reported, on a whole-of- State Government Superannuation in Australia under state-based government basis. Contribution Scheme (QSuper) for awards and it also employs people employees under both the defined overseas in connection with APTC For employees employed under foreign benefit scheme and the accumulation in accordance with the laws of the conditions of employment, a liability for superannuation scheme. TAFE local jurisdictions in which APTC annual leave accrued up to the end of Queensland also contributes to operates – Fiji, Vanuatu, Papua New the reporting period is recognised and several other externally managed Guinea, and Solomon Islands. is based on current salary and wage rates, and includes employer related accumulation superannuation For employees on Queensland- on-costs. The liability for long service schemes. Contributions are based conditions of employment, leave is recognised in the provision for expensed in the period in which TAFE Queensland is a member of the long service leave and measured as they are paid or payable. Queensland Government’s Annual the present value of expected future

44 Notes to and forming part of the financial statements for the year ended 30 June 2016

2016 2015 7. Supplies and Services $'000 $'000 Contractors 28,835 23,908 Property rental 49,196 54,991 Property, information technology support services, and transport 79,503 70,214 Travel and accommodation 6,847 8,536 Agents commissions 2,937 8,059 Advertising and promotions 10,700 7,428 Training materials 9,693 8,807 Printing and stationery 4,387 4,422 Minor equipment purchases 7,423 3,443 Subscriptions, books, and publications 4,467 2,322 Finance, human resources, and support services 6,208 8,491 Other supplies and services 15,390 14,343 Total 225,586 214,966

8. Other Expenses

Audit Fees Special Payments Other expenses include remuneration Special payments represent ex gratia otherwise moved to other employment to the auditors, Queensland Audit expenditure and other expenditure that arrangements after 1 April 2016, but Office, for the amount of $157,200 TAFE Queensland is not contractually before the agreement was certified ($85,700 2014-15) for audit services or legally obligated to make to other on 1 June 2016. These payments, invoiced during the year to 30 June parties. Special payments during included in other expenses, amounted 2016. Of this amount, $62,300 was 2015-16 include a one-off payment to $55,033 and attracted applicable in relation to the completion of the made consistent with the settlement salary on-costs. financial statement audit for the 2014- offer to finalise negotiations for the 15 year. Total audit fees payable to State Government Entities Certified the Queensland Audit Office relating Agreement 2015. This offer included to the 2015-16 financial statements an undertaking that a Section 831 are quoted to be $153,000 ($135,000 one-off payment of $1,300 (or 2014-15). There are no non-audit prorata) would be extended to those services included in this amount. employees who resigned, retired or

Annual Report 2015-2016 45 Notes to and forming part of the financial statements for the year ended 30 June 2016

2016 2015 9. Cash and Cash Equivalents $'000 $'000 Cash at bank 70,777 61,324 Queensland Treasury Corporation Capital Guaranteed Cash Fund 160,419 160,932 Total 231,196 222,256 Cash and cash equivalents comprise cash on hand, cheques receipted but not yet banked, and other short-term highly liquid investments. Cash at bank includes educational bequests of $0.423 million (2014-15 $0.414 million).

Reconciliation of cash flows from operating activities: Operating Profit 11,959 88,067 Adjustments for: Depreciation and amortisation 7,001 8,029 Asset Impairment 7,022 178 (Gain)/Loss on sale of property, plant and equipment 63 159

Change in assets and liabilities: (Increase)/decrease in receivables 5,875 (9,791) (Increase)/decrease in GST input tax credits receivable (5,105) (1,955) Increase/(decrease) in GST payable 4,086 621 (Increase)/decrease in inventories (91) 433 (Increase)/decrease in other current assets 725 (6,605) Increase/(decrease) in accounts payable (1,857) (3,721) Increase/(decrease) in accrued employee benefits 2,802 5,382 Increase/(decrease) in other liabilities (6,007) (18,844) Net cash provided by operating activities 26,473 61,954

46 Notes to and forming part of the financial statements for the year ended 30 June 2016

2016 2015 10. Receivables $'000 $'000 Current Trade debtors 40,005 45,721 Less: Trade debtors for impairment (2,244) (1,923) 37,761 43,799

GST receivable 3,777 2,757 Accrued revenue 34,964 32,795 Other receivables 6,382 2,239 Total 82,883 81,590 Receivables are recognised at amounts due at the time of sale or service delivery. Trade debtors are generally due for settlement 30 days from invoice date. Other receivables are due in accordance with their contractual terms. Collectability of trade debtors is reviewed on an ongoing basis with provision being made for impairment as a proportion of the age of the debt. Individual debts that are uncollectable are written off when identified. Movements in the provision for impairment, are recognised as an expense in that period. All known bad debts were written-off at 30 June 2016. Receivables and payables are stated with GST included. The net amount of GST recoverable from the Australian Taxation Officer is includes as a current asset. Refer to Note 18 Financial Instruments (Credit Risk Exposure) for an analysis of movements in the allowance for impairment loss.

Annual Report 2015-2016 47 Notes to and forming part of the financial statements for the year ended 30 June 2016

2016 2015 11. Property, Plant and Equipment $'000 $'000 Buildings: At fair value 4,854 4,641 Less: Accumulated depreciation (3,311) (3,052) Carrying amount 1,543 1,588

Plant and equipment: At cost 98,146 16,302 Less: Accumulated depreciation (72,596) (11,558) Carrying amount 25,550 4,744

Work in progress: Gross 1,575 -

Carrying amount 28,668 6,332

Machinery of Government Asset Classes Acquisition of property, plant and equipment The Department of Education and Each class of property, plant and Training (DET) transferred plant equipment is carried at fair value Acquisitions of property, plant and and equipment (from training sites or cost less, where applicable, equipment are initially recorded at cost. previously owned by the Queensland any accumulated depreciation and Cost is determined as the fair value of Training Asset Management Authority) impairment losses. Items of property, consideration given to acquire the asset to TAFE Queensland in accordance plant and equipment with a total plus costs incidental to the acquisition, with Ministerial approval received value in excess of the following including engineering design fees and from the Attorney-General, Minister thresholds are recognised in the year all other establishment costs. for Justice and Minister for Training of acquisition: Costs incurred subsequent to the initial and Skills on 24 November 2015. The Class of Fixed Asset Threshold asset purchase are capitalised when effective date of the transfer was close Buildings $10,000 the expenditure improves the condition of business on 30 November 2015. of the asset beyond its originally Plant and equipment $5,000 The net value of the assets transferred assessed standard of performance was $17,532,184. or capacity.

48 Notes to and forming part of the financial statements for the year ended 30 June 2016

11. Property, Plant and The replacement cost estimate was Property, plant and equipment is prepared from plans and elevations, depreciated on a straight-line basis Equipment (continued) together with available schedules over the estimated useful life of each item of property, plant and equipment. Asset valuation and specifications. Where this standard of supplied information Where assets have separately Each class of property, plant and was not available GRC determined identifiable components that are equipment is carried at fair value appropriate information from site subject to regular replacement, these or cost, less any accumulated surveys that were conducted. components are assigned useful lives depreciation and impairment losses. Given the nature of the complex distinct from the asset to which they Fair value is measured in accordance assets being assessed, GRC applied a relate and are depreciated accordingly. with AASB 116 Property, Plant combination of pricing methodologies Any expenditure that increases the and Equipment and Queensland all of which are adjusted to reflect the originally assessed capacity or service Treasury’s Non-Current Asset Policies anticipated construction market as at potential of an asset is capitalised for the Queensland Public Sector. the effective reporting date. Detailed and the new depreciable amount is Buildings are measured at fair value estimates were also used to determine depreciated over the remaining useful using a depreciated replacement the cost of replacing the existing life of the asset. cost approach. Valuations are assets with a modern equivalent asset. Depreciation methods, estimated undertaken annually to ensure that The fair value of the buildings was useful lives and residual values of the carrying value of the assets determined in 2014-15 by quantity property, plant and equipment are does not differ materially from that surveyor, GRC, using a depreciated reviewed annually and adjusted if which would be determined using replacement cost valuation technique, appropriate. The estimated useful fair value at the end of the reporting and adjusted for price changes. The lives for each class of depreciable period. Due to the specialised unobservable (Level 3) inputs assessed assets are: nature of this class of asset where during the valuation process included Class of Fixed Asset Useful life there is generally no active market, construction costs and condition (years) the fair value is determined using assessments. In 2015-16, GRC information from a variety of sources. Buildings 25 - 80 independently assessed and provided The fair value measurement an indexation for buildings within the Plant and equipment 3 - 20 for buildings of $1.543 million current financial year of 4.59%. Gains and losses on disposals ($1.588 million 2014-15) has been The current value in use is considered categorised as a Level 3 in the fair Gains and losses on disposals are to materially reflect highest and value hierarchy. Refer Note 2(b). determined by comparing proceeds best use for all property, plant and with the carrying amount of the TAFE Queensland’s buildings were equipment items. asset at the time of disposal. These independently valued by quantity gains and losses are included in the surveyor firm Gray, Robinson & Depreciation Statement of Comprehensive Income. Cotterell (GRC) as at 30 June 2015. Assets are depreciated from the date All purpose–built facilities are valued of acquisition or, in respect of internally using a depreciated replacement constructed assets, from the time an cost approach, as there is no active asset is completed and commissioned market for these facilities. The ready for use. independent quantity surveyor conducted physical inspections.

Annual Report 2015-2016 49 Notes to and forming part of the financial statements for the year ended 30 June 2016

2016 2015 12. Intangible Assets $'000 $'000 Intellectual property: At cost 3,240 1,269 Less: Accumulated amortisation (1,790) (554) Carrying amount 1,449 715

Software purchased: At cost 13,333 11,972 Less: Accumulated amortisation (11,400) (9,974) Carrying amount 1,933 1,998

Software internally generated: At cost 24,845 24,845 Less: Accumulated amortisation (24,517) (24,382) Carrying amount 328 463

Other intangible assets: At cost 623 139 Less: Accumulated amortisation (140) (139) Carrying amount 483 -

Work in progress: Gross 11,254 13,563

Carrying amount 15,448 16,739

50 Notes to and forming part of the financial statements for the year ended 30 June 2016

12. Intangible Assets Amortisation During 2015-16 TAFE Queensland ended a contract for the Amortisation is recognised on a (continued) implementation of a new student straight-line basis over the estimated management system. The recoverable Intangible assets with a cost greater useful lives of intangible assets from amount of expenditure that had been than $100,000 are capitalised. the date that they were available for capitalised as works in progress Subsequent expenditure is capitalised use. The useful lives of intangible was zero, and an impairment loss when it increases the future economic assets are reviewed annually and of $7.022m was recognised in the benefits embodied in the specific asset adjusted if appropriate. to which it relates. Statement of Comprehensive Income. The estimated useful lives of intangible Intangible assets are recognised assets are: and carried at cost less accumulated Class of Intangible Asset Useful life amortisation and accumulated (years) impairment losses. Intellectual property 3 Intellectual property Software purchased 5 - 10 Costs associated with the Software internally generated 7 - 10 development of intellectual property Other intangibles 10 have been capitalised and are amortised on a straight-line basis Impairment over its estimated useful life. The carrying amounts of TAFE The cost of intellectual property Queensland’s non-current assets are includes the cost of all materials, reviewed annually to determine whether direct labour, other directly there is any indication of impairment. attributable costs, and an An impairment loss is recognised if appropriate proportion of overheads the carrying amount of an asset or attributable during development. its cash-generating unit exceeds its Computer software estimated recoverable amount. Intangible assets are principally Costs associated with the assessed for impairment by reference development and implementation of to the actual and expected continuing new systems and computer software use of the asset by TAFE Queensland. have been capitalised and are Recoverable amount is determined amortised on a straight-line basis as the higher of the asset's fair value over its estimated useful life. less costs to sell and depreciated The cost of internally generated replacement cost. computer software includes the cost of all materials, direct labour, other directly attributable costs, and an appropriate proportion of overheads attributable during the development of the software.

Annual Report 2015-2016 51 Notes to and forming part of the financial statements for the year ended 30 June 2016

2016 2015 13. Payables $'000 $'000 Trade creditors 36,581 38,466 Other creditors 2,652 1,386 Total 39,233 39,852 Trade and other payables represent the value of goods and services provided to TAFE Queensland prior to the end of the financial year that remain unpaid. Trade and other payables are recognised upon receipt of the goods or services ordered and are measured at the agreed purchase price less any applicable discounts. Amounts owing are unsecured and are generally settled on 30 day terms.

14. Employee Benefits Accrued salaries and wages 8,785 5,082 Annual leave levy 11,286 7,707 Long service leave levy 1,882 1,601 Total 21,953 14,390 A liability is recognised for benefits accruing to employees for salaries and wages, annual leave, and long service leave when it is probable that settlement will be required and they are capable of being measured reliably. Current liabilities recognised for employee benefits expected to be settled within 12 months are measured at their nominal value using current salary and wage rates and related on-costs.

15. Other Current Liabilities Unearned revenue 31,715 32,428 Payments received in advance 4,482 9,543 Other current liabilities 554 751 Total 36,751 42,722 Unearned revenue is recognised where payments for goods and services are received in advance of TAFE Queensland delivering the related goods and/or services.

52 Notes to and forming part of the financial statements for the year ended 30 June 2016

2016 2015 16. Commitments for Expenditure $'000 $'000 Non-cancellable operating lease commitments Payable: Not later than one year 3,879 1,195 Later than one year and not later than five years 6,029 3,494 Later than five years - - Total 9,909 4,689

Capital Expenditure Payable: Not later than one year 158 - Later than one year and not later than five years - - Later than five years - - Total 158 - Commitments are inclusive of GST which is not recoverable from the Australian Tax Office. Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases and are not recognised in TAFE Queensland’s Statement of Financial Position. Operating lease payments are expensed in the period incurred and are representative of the pattern of benefits derived over the lease term. Operating leases are entered into as a means of acquiring access to office accommodation, training facilities, and office equipment. Lease payments are generally fixed, but with inflation escalation clauses on which contingent rentals are determined. No renewal or purchase options exist in relation to operating leases and no operating leases contain restrictions on financing or other leasing activities.

Annual Report 2015-2016 53 Notes to and forming part of the financial statements for the year ended 30 June 2016

17. Contingencies 18. Financial Instruments Financial liabilities are derecognised if the obligations specified in the contract At 30 June 2016, TAFE Queensland Categorisation of financial expire or are discharged or cancelled. has 31 active claims with WorkCover instruments Financial instruments are classified and Queensland (50 claims 2014-15), measured as follows: and four claims with the Queensland Financial instruments are recognised Government Insurance Fund. These initially at fair value when the related • cash and cash equivalents – held at claims are not considered to be contractual rights or obligations exist. fair value material in value. Subsequent to initial recognition these • receivables – held at amortised cost financial instruments are measured as • payables and accrued employee described below. benefits – held at amortised cost Financial assets are derecognised if the contractual rights to the cash flows from the financial assets expire or if the financial asset is transferred to another party without retaining control or substantially all risks and rewards of the asset are transferred.

2016 2015 Notes $'000 $'000 Financial Assets Cash and cash equivalents 9 231,196 222,256 Receivables 10 82,883 67,343 Total 314,080 289,599

Financial Liabilities Financial liabilities measured at amortised cost: Payables 13 39,233 39,852

All payables are not yet due for payment.

54 Notes to and forming part of the financial statements for the year ended 30 June 2016

18. Financial Instruments Credit risk Cash is held with a regulated financial institution that has a Credit risk is the risk of financial loss to (continued) credit rating of at least A+. TAFE Queensland if a customer or a Financial Risk Management counterparty to a financial instrument The maximum exposure of TAFE Queensland to credit risk at balance TAFE Queensland has an exposure fails to meet its contractual obligations, date in relation to each class of to a variety of financial risks, including and arises principally from TAFE recognised financial asset is the credit risk, liquidity risk and market risk. Queensland’s receivables from trade debtor counterparties (credit provided carrying amount of those assets net The TAFE Queensland Board has direct to customers) and deposits. of any allowances for impairment, the overall responsibility for the as indicated in the Statement of The QTC Cash Capital Guaranteed establishment and oversight of the Financial Position. Aging of past Fund is an asset management portfolio risk management framework. due but not impaired, as well with investments in a wide variety The Board established the Audit, Finance as impaired financial assets are of high credit rating counterparts. and Risk Management Committee, disclosed in the following tables: Deposits are capital guaranteed. which is responsible for developing and monitoring risk management 2016 Financial assets past due but not impaired policies. The Committee reports regularly to the Board on its activities. Less than 30 – 60 61 – 90 More than TAFE Queensland measures risk Overdue 30 Days Days Days 90 Days Total exposure using a variety of methods $'000 $'000 $'000 $'000 $'000 as follows: Financial Assets Risk Measurement exposure method Receivables 1,096 711 312 1,592 3,711 Credit risk Ageing analysis Total 1,096 711 312 1,592 3,711 Liquidity risk Sensitivity analysis 2016 Individually impaired financial assets Interest rate Market risk sensitivity analysis Less than 30 – 60 61 – 90 More than Overdue 30 Days Days Days 90 Days Total $'000 $'000 $'000 $'000 $'000 Financial Assets Receivables (gross) 12 - 1 3,039 3,052 Allowance for (10) - (1) (2,233) (2,244) impairment Carrying amount 2 - - 806 808

Annual Report 2015-2016 55 Notes to and forming part of the financial statements for the year ended 30 June 2016

18. Financial Instruments (continued) 2015 Financial assets past due but not impaired

Less than 31 – 60 61 – 90 More than Overdue 30 Days Days Days 90 Days Total $'000 $'000 $'000 $'000 $'000 Receivables 6,920 3,760 2,980 2,538 16,198 Total 6,920 3,760 2,980 2,538 16,198

2015 Individually impaired financial assets

Less than 31 – 60 61 – 90 More than Overdue 30 Days Days Days 90 Days Total $'000 $'000 $'000 $'000 $'000 Receivables (gross) - - 164 1,851 2,015 Allowance for impairment - - (82) (1,842) (1,924) Total - - 82 9 91

Credit risk is managed by the individual regions of TAFE Queensland who consider a provision for impairment for all debts more than 120 days overdue.

Liquidity risk Market risk Fair value Liquidity risk is the risk that TAFE Market risk is the risk that changes TAFE Queensland has not recognised Queensland will not be able to meet in market prices will affect TAFE any financial assets or financial its financial obligations as they fall Queensland’s income or the value of liabilities at fair value, except for due. TAFE Queensland’s approach to its holdings of financial instruments. cash and cash equivalents. The fair managing liquidity risk is to ensure that TAFE Queensland is exposed to value of receivables and payables it will always have sufficient liquidity interest rate risk through its cash is assumed to approximate the to meet its liabilities when due, under deposited through its investments with value of the original transaction, less both normal and stressed conditions, QTC and cash deposited in interest any allowance for impairment. without incurring unacceptable bearing accounts. If interest rates losses or risking damage to TAFE were to change by +/- 1% and with Queensland’s reputation. all other variables held constant, TAFE Queensland would have a surplus and equity increase/(decrease) of $2.312 million ($2.223 million 2014-15). TAFE Queensland does not undertake any hedging in relation to interest risk and manages its risk as per the liquidity risk management strategy.

56 Notes to and forming part of the financial statements for the year ended 30 June 2016

19. Budget vs Actual Comparison Statement of Comprehensive Income

Variance Budget Actual Variance Variance Notes 2016 2016 2016 2016

$'000 $'000 $'000 % of Budget Income Sales of goods and services 273,446 270,269 (3,177) (1%) Grants and contributions 356,322 360,788 4,466 1% Other revenue 1 12,660 14,376 1,716 14% Total Income 642,428 645,433 3,005 0%

Expenses Employee expenses 380,650 389,269 8,619 2% Supplies and services 229,053 225,586 (3,467) (2%) Grants and subsidies 502 1,227 725 145% Depreciation and amortisation 2 12,010 7,001 (5,009) (42%) Impairment of non-current assets 3 - 7,022 7,022 100% Other expenses 2,422 3,368 946 39% Total expenses 624,637 633,474 8,837 1%

Operating profit 17,791 11,959 (5,832) (33%)

Other Comprehensive Income Increase (decrease) in asset revaluation surplus - 68 68 100%

Total comprehensive income for the year 17,791 12,027 (5,764) (32%)

Annual Report 2015-2016 57 Notes to and forming part of the financial statements for the year ended 30 June 2016

19. Budget vs Actual Comparison (continued) Statement of Financial Position

Variance Budget Actual Variance Variance Notes 2016 2016 2016 2016

$'000 $'000 $'000 % of Budget Current assets Cash and cash equivalents 231,707 231,196 (511) (0%) Receivables 4 71,231 82,883 11,652 16% Inventories 800 663 (137) (17%) Other current assets 5 3,143 7,966 4,823 153% Total current assets 306,881 322,709 15,828 5%

Non-current assets Intangible assets 27,947 28,668 721 3% Property, plant and equipment 14,696 15,448 752 5% Total non-current assets 42,643 44,116 1,473 3% Total assets 349,524 366,825 17,301 5%

Current liabilities Payables 6 33,789 39,233 5,444 16% Employee benefits 7 14,648 21,953 7,305 50% Other current liabilities 8 60,857 36,751 (24,106) (40%) Total current liabilities 109,294 97,937 (11,357) (10%)

Total non-current liabilities - - - 0%

Total liabilities 109,294 97,937 (11,357) (10%)

Net assets 240,230 268,888 28,658 12%

Equity Contributed equity 9 151,409 168,795 17,386 11% Retained earnings 10 88,821 100,025 11,204 13% Asset revaluation reverse - 68 68 100% Total equity 240,230 268,888 28,658 12%

58 Notes to and forming part of the financial statements for the year ended 30 June 2016

19. Budget vs Actual Comparison (continued) Statement of Cash Flows

Variance Budget Actual Variance Variance Notes 2016 2016 2016 2016

$'000 $'000 $'000 % of Budget Cash flows from operating activities Sales of goods and services 283,745 284,360 615 0% Grants and contributions 356,322 357,799 1,477 0% GST input tax credits from ATO 19,406 19,419 13 0% Interest received 4,600 6,555 1,955 42% Other receipts 8,060 6,773 (1,287) (16%) Employee expenses (380,837) (386,521) (5,684) 1% Supplies and services (248,215) (252,464) (4,249) 2% Grant and subsidies (502) (1,227) (725) 145% GST remitted to ATO (8,594) (6,893) 1,701 (20%) Other payments (2,013) (1,328) 685 (34%) Net cash provided by (used in) 31,972 26,473 (5,499) (17%) operating activities

Cash flows from investing activities Sales of property, plant and equipment - 82 82 100% Payments for non-financial assets 11 (32,573) (17,614) 14,959 (46%) Net cash provided by (used in) (32,573) (17,532) 15,041 (46%) investing activities

Net increase (decrease) in cash and cash (601) 8,940 9,541 (1588%) equivalents Cash and cash equivalents at beginning of 232,308 222,256 (10,052) (4%) financial year Cash and cash equivalents at end of 231,707 231,196 (511) (0%) financial year

Annual Report 2015-2016 59 Notes to and forming part of the financial statements for the year ended 30 June 2016

19. Budget vs Actual Statement of Financial Position 9. The variance in contributed equity relates to the transfer of plant Comparison (continued) 4. The variance in receivables mainly relates to the recognition of and equipment formerly owned by the Queensland Training Asset Explanation of major variances receivables relating to Queensland Government subsidised training Management Authority from DET Statement of Comprehensive Income revenue for training that has to TAFE Queensland. 1. The variance in other revenue commenced but not completed as 10. The variance in retained is mainly due to an increase in at 30 June 15 ($16.2m). earnings mainly relates to the interest revenue earned ($2.1m). 5. The variance in other current prior year adjustment relating to 2. The variance in depreciation assets mainly relates to the recognition of Queensland and amortisation is due to lower prepayments of information Government subsidised training amortisation expenses due technology contracts/licences revenue for training that has to the discontinuation of the ($2.2m), and the inclusion of commenced but not completed student management system prepayments made by APTC in as at 30 June 2015 ($14.2m). project (originally budgeted to the financial statements ($1.8m). Refer to Note 22 Prior Period be in production October 2015) Adjustments for further information. 6. The variance in payables mainly ($1.7m), and the later than relates to the inclusion of payables Statement of Cash Flows budgeted capitalisation of product relating to APTC in the financial 11. The variance in payments for non- development ($0.5m). The variance statements ($3.9m). financial assets is mainly due to has also been impacted by the lower capitalisation of costs due to timing of the transfer of plant 7. The variance in employee benefits the discontinuation of the student and equipment from DET which is mainly due to actual opening management system ($6.7m) and occurred later than anticipated and balances for salaries and wages lower expenditure on plant and lower replacement of equipment payable being higher than equipment. during the year, both of which budgeted ($3.1m) and an increase

resulted in lower depreciation in the amount of annual leave expenses ($2.8m). payable to the central scheme at 30 June 2016 ($3.6m). 3. The variance in impairment of non-current assets relates to the 8. The variance in other current impairment of work in progress liabilities is mainly due to lower relating to the implementation of a than budgeted opening balances new student management system. ($18.6m) due to the adjustment Refer to Note 12 Intangible Assets of unearned revenue relating to for further information. training services yet to be delivered to students for which invoices had been issued but not paid in 2014- 15. In addition, payments received in advance were budgeted to remain constant however balances have reduced by $5.1m as at 30 June 2016.

60 Notes to and forming part of the financial statements for the year ended 30 June 2016

20. Key Management (c) Board Members' transactions (f) Remuneration for key executive management personnel Personnel A number of the Board Members hold positions in other entities that Key executive management personnel (a) Key management personnel may result in them having control or of TAFE Queensland are appointed and remuneration significant influence over the financial under the TAFE Queensland Act Key management personnel and or operating policies of those entities. 2013. Remuneration and other terms remuneration disclosures are made AASB 124 Related Party Disclosures of employment are formalised in in accordance with section 3C of the excludes Queensland Government individual contracts of employment. Financial Reporting Requirements for departments and agencies as related These contracts of employment Queensland Government Agencies parties of TAFE Queensland. Excluding make a provision for an appropriate issued by Queensland Treasury. Queensland Government departments combination of competitive fixed and and agencies, TAFE Queensland has variable remuneration components. (b) Board Members not conducted business in the 2015- Remuneration expenses for key On 15 August 2013 the first TAFE 16 financial year with related parties of management personnel comprise the Queensland Board was appointed any Board Members (2014-15 Nil). following components: by the Queensland Governor-in- (d) Loans to key management • Short term employee expenses Council. Each of the current board personnel which include: members have been appointed None of the key management until 30 November 2016. –– Salaries, allowances and leave personnel have personal loans with entitlements earned for the year Board Members' fees include TAFE Queensland outstanding at or for that part of the year during fees paid for membership of TAFE 30 June 2016. Queensland's Board and relevant which the employee occupied (e) Key executive management Board committees. In accordance with the specified position. personnel transactions Queensland Government policy, as a –– Performance payments Key executive management personnel public sector employee, Mr Peter Price recognised as an expense during of TAFE Queensland or their related has not received any remuneration as the year (refer to Note 20 (g)). parties conduct transactions with TAFE a TAFE Queensland board member. Queensland on terms and conditions –– Non-monetary benefits including no more favourable than those fringe benefits tax. available, or which might reasonably • Long term employee expenses be expected to be available, on similar include amounts expensed in transactions to non-related entities on respect of long service leave an arm's length basis. entitlements earned.

Details of remuneration for each Board Member are: • Post-employment expenses include amounts expensed 2016 2015 in respect of employer Remuneration $ Remuneration $ superannuation obligations. Mr Warren R Tapp 60,019 60,041 • Termination benefits are not Ms Anita M Brown 38,194 38,194 provided for within individual Mr Darrell C Butcher (appointed 11 contracts of employment. Contracts 38,194 20,860 December 2014) of employment provide only for Mr Peter G Dowling 38,194 38,194 notice periods or payment in lieu of notice on termination, regardless of Ms Elizabeth N Honeycombe 38,194 38,194 the reason for termination. Ms Vivienne M Mallinson 38,194 38,194 Mr Peter J Price - - 250,989 233,677

Annual Report 2015-2016 61 Notes to and forming part of the financial statements for the year ended 30 June 2016 - 0 1 47 37 37 38 39 36 39 78 36 39 38 $’000 Potential Payment Maximum Performance 87 415 463 301 Total Total $’000 Expenses 356 281 286 293 307 274 301 264 292 ------52 $’000 Benefits Termination Termination 31 10 30 30 31 31 35 29 32 30 25 32 31 $’000 Post- Expenses Employment 4 2 7 5 5 5 6 5 5 9 5 5 5 $’000 Expenses Employee Long Term Long Term ------2 2 Non- $’000 monetary 2 76 319 246 250 256 264 236 260 418 230 260 252 Expenses 338 $’000 Short Term Employee Short Term Monetary 2016 Date 2014 4 August Appointed 1 July 2014 1 July 2014 1 July 2014 1 July 2014 1 July 2014 1 July 2014 1 July 2014 1 July 2014 1 July 2013 1 July 2014 1 July 2014 15 February Information and communications technology (ICT) strategy development, ICT contract management and procurement functions and ICT operational services. Strategic Human Resources Strategic Human Resources and delivery of Human direction services. Resources Strategic and operational management of TAFE Queensland. Academic strategy, teaching Academic strategy, governance, learning and quality, services. and digital product Directing the activities at TAFE the activities at TAFE Directing Queensland campuses in each in alignment with TAFE region and commercial Queensland’s strategic direction. Operational performance and the translation of organisational strategy into operational plans. Financial strategy and planning, reporting financial systems and functions, financial policies procurement and procedures, functions, and the evaluation of investment decisions. Responsibilities 2 2 ayments relating to 2014-15 totalling $358,805 were made to key management to 2014-15 totalling $358,805 were Payment of performance bonuses occurs in the year following actual performance. Refer to note 20 (g). In 2015-16, p ayments relating Monetary Employee Expenses above). personnel on 19 August 2015 (included in Short Term and includes payout to the outgoing incumbent of accrued employee a change in incumbents during the financial year, reflects Queensland South West Remuneration disclosed for General Manager of TAFE entitlements on termination. The outgoing incumbent ceased employment 4 April 2016. Chief Information Officer Chief Human Resources Officer Queensland Brisbane TAFE Queensland East Coast TAFE Queensland Gold Coast TAFE Queensland North TAFE Queensland SkillsTech TAFE Queensland South West TAFE Queensland South West TAFE Chief Executive Officer Chief Executive Officer Chief Academic Officer General Managers Chief Operating Officer Chief Financial Officer Role 20. Key Management Personnel (continued) Personnel Management Key 20. the activities of business. and controlling for planning, directing The following details for key executive management personnel include those positions that had authority and responsibility 2015-16 1. 2.

62 Notes to and forming part of the financial statements for the year ended 30 June 2016 1 35 44 19 39 78 37 37 37 34 38 38 37 $’000 Potential Payment Maximum Performance 315 318 204 262 397 247 248 241 216 261 261 248 Total Total $’000 Expenses 29 27 19 29 44 27 27 27 24 29 29 27 Post- $’000 Expenses Employment 6 6 4 5 7 5 4 4 5 5 5 $’000 5 Expenses Employee Long Term Long Term ------3 $’000 Non-monetary 3 3 Expenses 181 229 346 215 216 210 188 227 227 216 280 285 $’000 Short Term Employee Short Term Monetary Date Appointed 1 July 2014 1 July 2014 1 July 2013 1 July 2014 1 July 2014 1 July 2014 1 July 2014 1 July 2014 1 July 2014 1 July 2014 1 July 2014 4 August 2014 Information and communications technology (ICT) strategy development, ICT contract management and procurement functions and ICT operational services. Responsibilities Strategic Human Resources direction and direction Strategic Human Resources services. delivery of Human Resources Strategic and operational management of Queensland. TAFE Academic strategy, teaching governance, Academic strategy, and digital product learning and quality, services. Directing the activities at TAFE Queensland the activities at TAFE Directing in alignment campuses in each region and commercial Queensland’s with TAFE strategic direction. Operational performance and the translation of organisational strategy into operational plans. Financial strategy and planning, financial functions, financial systems and reporting procurement policies and procedures, functions, and the evaluation of investment decisions. 2

The Chief Academic Officer received an incentive payment totalling $67,190 on the 3 October 2014. The Chief Academic Officer an incentive payment totalling $21,516 on 8 August 2014. Queensland Brisbane received TAFE The General Manager, • • East Coast TAFE Queensland TAFE TAFE Queensland TAFE Brisbane Gold Coast TAFE Queensland TAFE TAFE Queensland North TAFE TAFE Queensland TAFE SkillsTech South West TAFE Queensland TAFE Payment of performance bonuses occurs in the year following actual performance. Refer to note 20 (g). was appointed under an 17 November 2014, the Chief Information Officer was appointed as an SES2, under s122 Public Service Act 2008. From 1 July 2014 to 17 November the Chief Information Officer From individual contract. held roles: to previously made to two key management personnel in relation In 2014-15 performance payments were Role Chief Information Officer Chief Human Resources Chief Human Resources Officer Chief Executive Officer Chief Executive Officer Chief Academic Officer General Managers Chief Operating Officer Chief Financial Officer 20. Key Management Personnel (continued) Personnel Management Key 20. 2014-15 1. 2. 3.

Annual Report 2015-2016 63 Notes to and forming part of the financial statements for the year ended 30 June 2016

20. Key Management 21. New and Revised This standard amends AASB 13 Fair Value Measurement and provides Personnel (continued) Accounting Standards relief to not-for-profit public sector (g) Performance payments TAFE Queensland did not voluntarily entities from certain disclosures about The variable component of change any of its accounting policies property, plant and equipment that is remuneration is provided to executive during 2015-16. primarily held for its current service managers through an annual incentive Two Australian Accounting Standards potential rather than to generate future performance scheme. The scheme have been early adopted for the 2015- net cash inflows. The relief applies is designed to effectively reward a 16 year as required by Queensland to assets under AASB 116 Property, combination of key outcomes in Treasury. These are: Plant and Equipment which are excess of meeting business goals and measured at fair value and categorised AASB 2015-2 Amendments to targets, and networked leadership within Level 3 of the fair value hierarchy Australian Accounting Standards – behaviours. The performance payment (refer to Note 2(b)). Disclosure Initiative: Amendments is contingent upon TAFE Queensland to AASB 101 [AASB 7, AASB 101, As a result, the following disclosures achieving the Board-approved AASB 134 & AASB 1049] are no longer required for those assets. operating margin result, and the In early adopting the amendments, The amendments arising from this individual satisfying the performance the following disclosures have been standard seek to improve financial expected in their role. Performance removed from the 2015-16 financial reporting by providing flexibility as to payments may not exceed a maximum statements: of twenty per cent of the CEO’s total the ordering of notes, the identification • disaggregation of certain gains/ remuneration package and fifteen and location of significant accounting losses on assets reflected in the per cent of all other key management policies and the presentation of operating result; personnel’s total remuneration sub-totals, and provides clarity package. on aggregating line items. It also • quantitative information about the significant unobservable inputs used Performance assessments occur emphasises only including material in the fair value measurement ; and after the end of the financial year and disclosures in the notes. TAFE consist of: Queensland has applied this flexibility • a description of the sensitivity of the in preparing the 2015-16 financial fair value measurement to changes • assessment against both TAFE statements, including co-locating in the unobservable inputs. Queensland and business unit significant accounting policies with measures and targets; and No new Australian Accounting the related breakdowns of financial Standards effective for the first time in • assessment of the individual’s statement figures in the notes. 2015-16 had any material impact on network leadership behaviours. AASB 2015-7 Amendments to this financial report. These assessments include both peer Australian Accounting Standards assessment and CEO assessments. – Fair Value Disclosures of Payment of performance bonuses Not-for-Profit Public Sector Entities occurs in the year following actual [AASB 13] performance. As at the date these statements were certified by management, the performance assessment process for 2015-16 was not yet finalised.

64 Notes to and forming part of the financial statements for the year ended 30 June 2016

21. New and Revised Accounting Standards (continued) Future impact of accounting standards not yet effective At the date of authorisation of the financial report, the expected impacts of new or amended Australian Accounting Standards with future commencement dates are as set out below.

Reporting periods beginning on / after

AASB 124 Related Party Disclosures From reporting periods beginning on or after 1 July 2016, TAFE Queensland will need to comply with the requirements of AASB 124 Related Party Disclosures. That accounting standard requires a range of disclosures about the remuneration of key management personnel, transactions 1 July 2016 with related parties/entities, and relationships between parent and controlled entities. The most significant implications of AASB 124 for TAFE Queensland’s financial statements will be the disclosures to be made about transactions with related parties, including transactions with key management personnel or close members of their families.

AASB 15 Revenue from Contracts with Customers This standard contains more detailed requirements for the accounting for certain types of revenue from customers. Depending on the specific contractual terms, the new requirements may potentially result in a change to the timing of revenue from sales of TAFE Queensland’s goods 1 January 2018 and services. TAFE Queensland is yet to complete its analysis of current arrangements for sale of its goods and services, but at this stage does not expect a significant impact on its present accounting practices.

AASB 9 Financial Instruments (December 2014) AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) The main impacts of these standards are that they will change the requirements for the classification, measurement and disclosures associated with financial assets. Under the new 1 January 2018 requirements, financial assets will be more simply classified according to whether they are measured at either amortised cost or fair value. This change is not currently expected to have a material impact on TAFE Queensland’s financial statements.

AASB 16 Leases AASB 16 introduces a single lease accounting model for lessees. Lessees will be required to recognise a right-of-use asset (representing rights to use the underlying leased asset) and a liability (representing the present value of lease payments during the lease term that are not yet paid) for all leases with a term of more than 12 months, unless the underlying assets are of low value. The right-of-use asset will be initially recognised at cost, consisting of the initial amount of the associated lease liability, plus any lease payments made to the lessor at or before the commencement date, less any lease incentive received, the initial estimate of restoration costs 1 January 2019 and any initial direct costs incurred by the lessee. The right-of-use asset will give rise to a depreciation expense. AASB 16 allows for a choice of transitional accounting methods. TAFE Queensland will await further guidance from Queensland Treasury on the transitional accounting method to be applied. TAFE Queensland has not yet quantified the impact on the Statement of Comprehensive Income or the Statement of Financial Position of applying AASB 16 to its current operating leases, including the extent of additional disclosure required.

All other Australian Accounting Standards and interpretations with future commencement dates are either not applicable to TAFE Queensland’s activities, or have no material impact on TAFE Queensland.

Annual Report 2015-2016 65 Notes to and forming part of the financial statements for the year ended 30 June 2016

22. Prior Period Adjustments Grants and contributions includes the subsidised component of course fees received from the Queensland Government under the VET Investment Plan programs. In 2015-16 TAFE Queensland identified that a provision should be recognised for revenue relating to training that had commenced but was not completed as at 30 June. An estimate for this revenue was calculated as at 30 June 2016 and included in sales of service revenue. Comparative numbers reported in the 2014-15 Statement of Comprehensive Income and Statement of Financial Position have been restated to reflect the provision for revenue relating to training that had commenced but was not completed as at 30 June 2015. Restatement to earlier periods is not possible as the operations of TAFE Queensland were transferred from DET on 1 July 2014. The line items affected are as follows:

Published Financial Restated Statements Correction Actuals $'000 $'000 $'000 Statement of Comprehensive Income Total income 695,224 14,247 709,471 Total comprehensive income 73,820 14,247 88,067

Statement of Financial Position Receivables 67,343 14,247 81,590 Total Assets 322,046 14,247 336,293

Accumulated surplus 73,820 14,247 88,067 Total Equity 225,082 14,247 239,329

23. Events Occurring After Balance Date There were no events or transactions that arose between the end of the financial year and the date of this report that were of a material or unusual nature that would significantly affect the operations of TAFE Queensland.

66 Management Certificate for the year ended 30 June 2016

These general purpose financial statements have been prepared pursuant to section 62(1) of the Financial Accountability Act 2009 (the Act), relevant sections of the Financial and Performance Management Standard 2009 and other prescribed requirements. In accordance with section 62(1)(b) of the Act we certify that in our opinion:

(a) the prescribed requirements for establishing and keeping the accounts have been complied with in all material respects; and

(b) the statements have been drawn up to present a true and fair view, in accordance with the prescribed accounting standards, of the transactions of TAFE Queensland for the financial year ended 30 June 2016, and of the financial position of TAFE Queensland at the end of that year.

(c) these assertions are based on an appropriate system of internal controls and risk management processes being effective, in all material respects, with respect to financial reporting throughout the reporting period.

Warren R Tapp Jodi N Schmidt Chairperson Chief Executive Officer TAFE Queensland TAFE Queensland

Date: 25 August 2016 Date: 25 August 2016

Clifford J Kaye Chief Financial Officer TAFE Queensland

Date: 25 August 2016

Annual Report 2015-2016 67 Independent Auditor's Report for the year ended 30 June 2016

68 Annual Report 2015-2016 69 Glossary of Terms

A Full-time equivalents (FTEs) U A representative number that is Apprenticeship User Choice calculated by assessing the hours A system of training, regulated by law Australia’s principal provider of VET worked over the financial year by all or custom, which combines on-the- research and statistics. full-time and part-time employees, and job training and work experience with converting this to a corresponding formal off-the-job training, while in R number of employees as if all staff paid employment. were full-time. Recognition of Prior Learning (RPL) The recognition of competencies AS/NZS ISO 31000:2009 H currently held, regardless of how, An International Standard which when or where the learning occurred. provides principles and generic Higher Level Skills (HLS) A person’s skills and knowledge guidelines on risk management. A funding program administered by acquired through previous formal or the Department of Education and informal education and training, work AS/NZS 5050:2010 Training designed to assist Queensland or life experience may be used to grant A Standard which describes the students to access a subsidised status or credit in a subject or module. application of the principles, framework training place in a priority certificate and process for risk management, as IV, diploma or advanced diploma level Registered training organisation (RTO) set out in AS/NZS ISO 31000:2009, qualification, or a priority industry An organisation registered to deliver to disruption-related risk. endorsed skill set. and assess nationally recognised VET. Australian Qualifications Framework I S A comprehensive nationally- consistent framework incorporating Information and communication School-based Apprenticeships and all qualifications recognised in post- technologies (ICT) Traineeships (SATs) compulsory education throughout An umbrella term that describes Pathways for Year 10, 11 and 12 Australia. The framework identifies six the use of all technologies in the students combining senior studies, levels in the VET sector: Certificate I, manipulation and communication VET and employment. Certificate II, Certificate III, Certificate of information. IV, Diploma and Advanced Diploma. Service Delivery Statement (SDS) K Budget papers prepared on a C Key performance indicator (KPI) portfolio basis by agencies reporting to each minister and the Speaker. Certificate 3 Guarantee (C3G) Tracking indicator used to measure the The document comprises a section A funding program administered by achievement of outputs against goals. for each departmental portfolio and the Department of Education and N one for the Legislative Assembly of Training designed to assist Queensland Queensland. It is produced annually students to complete their first post National Centre for Vocational and provides budgeted financial school certificate 3 level qualification Education Research (NCVER) and non-financial information for to gain a job or improve their Australia’s principal provider of VET the budget year. The SDS sets out employment status. research and statistics. the priorities, plans and financial F National Partnership Agreement statements of agencies. An agreement between the FEE-HELP Strategic plan Commonwealth and the states and FEE-HELP is a loan scheme that The document which provides territories to facilitate coordination, assists eligible fee paying students pay TAFE Queensland’s purpose and monitoring and delivery of strategies all or part of their tuition fees. direction. It outlines overall objectives to improve service delivery. (including contributions to whole-of- government objectives, ambitions and targets) and how it will know if it has achieved those agency objectives (performance indicators).

70 T Technical And Further Education (TAFE) Acronyms and Abbreviations Provides a wide range of predominantly vocational tertiary A education courses, mostly qualifying ABS Australian Bureau of Statistics courses under the National Training System, Australian Qualifications AFRC Audit, Finance and Risk Management Committee Framework or Australian Quality Training Framework. AMEP Adult Migrant English Program

Traineeship D A system of training regulated by law DET Department of Education and Training or custom which combines on-the- job training and work experience with E formal off-the-job training, while in paid employment. EDRMS Electronic document and records management system

V ELICOS English Language Intensive Courses for Overseas Students

VET FEE-HELP M VET FEE HELP is an income contingent loan scheme available to MP Member of Parliament assist eligible students studying higher level vocational education and training N (VET) qualifications to pay their tuition NCVER National Centre for Vocational Education Research fees. Higher level VET qualifications are at the diploma level and above. Q

VET in Schools (VETiS) QAO Queensland Audit Office A funding program administered by the Department of Education QDAN Queensland Disposal Authority Number and Training designed to assist S Queensland school students to acquire skills and knowledge SEE Skills for Education and Employment required for specific industries as part of their school studies. T

Vocational education and training TVET Technical, Vocational Education and Training (VET) Post-compulsory education and V training which provides people VET Vocational, Education and Training with occupational or work-related knowledge and skills.

Annual Report 2015-2016 71

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Published by: TAFE Queensland Level 9, 133 Mary Street, Brisbane QLD 4000 PO BOX 16100, CITY EAST QLD 4001 Phone: +61 7 3514 3600 Fax: +61 7 3514 3650 www.tafeqld.edu.au