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BENDIGO TAFE Contents BENDIGO TAFE CONTENTS Report from the President and the CEO 1-3 Ex-Gratia Payments 26 Attestation of Risk Management Compliance 4 Statement of Performance 27 Manner of Establishment 4 Compliance with the Building Act 1993 29 Tenders Won During 2010 5 Freedom of Information Act (1982) 29 ADEC Summer Abroad Program 6 Whistleblowers Protection Act 2001 30 Capability of Bendigo TAFE 7-8 Competitive Neutrality 30 Organisational Chart 9-10 Additional Information 31 Outline and Structure of the Board 11 Sponsored Committees 31 2010 Board Members – Pecuniary Interests 32 13-14 Qualifications, Knowledge, Experience and Skills Shares 32 2010 Board Meeting Attendance 15 Marketing Publications 33 2010 Sub-Committee Meeting Attendance 15-16 Marketing Activities 33 Training undertaken by Board Members in 2010 16 Students Fees and Charges 35 Performance and Activities of the Board 17 Major External Reviews 37-38 Strategic Plan 18 Research Initiatives 40 Student Awards 2010 19 Overseas Visits, Initiatives, Strategies, Risk 41 Statement on Workforce Data 21 Management and Performance Application of Employment and Conduct Principles 22 Bendigo TAFE Youth Profile 43 Occupational Health and Safety (OH&S) 22 Bendigo Technical Education College 44 Industrial Relations 22 Independent Auditor’s Report 45-48 Five Year Financial Summary 23 Financial Report Declaration 49 Significant Changes in Financial Position 23 Statement of Performance Management 50 Certificate Consultancy < $100,000 25 Disclosure Index 51-59 Consultancy > $100,000 25-26 REPORT FROM THE PRESIDENT AND THE CEO 2010 was a very challenging year for Bendigo TAFE as we prepared ourselves for full implementation of Skills Reform in 2011. We are pleased to report that Bendigo TAFE was successful in 2010, in maintaining its overall market position and its financial viability. We predicted 2010 would be a difficult year, given an anticipated downturn in the number of Diploma and Advanced Dr. Louise Harvey Ms. Margaret O’Rourke Diploma students enrolling at Bendigo Bendigo TAFE Bendigo TAFE TAFE. The downturn was partly due to La Chief Executive Officer Board President Trobe University significantly increasing its student offers in Bendigo in 2009 for 2010. The downturn was also due to the The decline in enrolments in higher level qualifications in 2010 was offset by introduction of Skills Reform which meant significant increases in our delivery of education and training to young people. 25-30% of our potential students were no The Victorian State Government Training Guarantee provides virtually unlimited longer eligible for government subsidised access to government subsidised post-secondary education and training for education and training and hence were young Victorians. required to pay increased tuition fees. In the past four years, student numbers at Bendigo TAFE in the 19 years and under At the beginning of 2010, the drop in age bracket have increased by 577 students from 2840 students in 2009 to 3417 student enrolments in Diplomas and students in 2010, or 20.3%. In the 20-24 years age bracket the increase has been Advanced Diplomas was about 60% 257 students from 1634 students in 2007 to 1891 students in 2010, or by 15.7%. compared to 2009 enrolments. However, by the end of 2010 we had pulled this A range of innovative education and training programs targeting young people, back to 29% fewer enrolments than the and particularly those disengaged or at risk of disengaging from education and previous year. training, have been responsible for this significant increase in young people studying at Bendigo TAFE. This drop in Diploma and Advanced Diploma enrolments faithfully reflects Overall, in 2010 Bendigo TAFE delivered 3,027,545 student contact hours to 10,960 what we know about our local markets students. This is a 6% decrease on the 3,211,677 student contact hours delivered to in Bendigo and throughout the region. 12,187 students in 2009. Potential students in our region are very sensitive to any increase in the cost This reduction in the delivery of student contact hours is partly attributable to the of study. reduction in student enrolments for Diplomas and Advanced Diplomas. It is also due to Bendigo TAFE’s effort to reduce its unfunded activity for 2010. Approximately 10% of our 2010 Diploma and Advanced Diploma students took In 2009 Bendigo TAFE grew its business by just over 22% in an effort to meet the advantage of VET Fee Help loans to demand for our services throughout our region. Unfortunately a significant assist them in funding their studies. proportion of this growth in activity was unfunded. Page 1 In 2010 the financial pressures on If we take a longer term view of our financial situation, we can see significant Bendigo TAFE required us to restrict improvement over the past 4 years. In 2007 our operating income (total income delivery wherever possible to stay minus capital) was $30.8 million. In 2008 it grew by $1.8 million or 6%, and in 2010 a within our government funded targets. further $5.1 million or 14%. In total our operating income has grown by $9.8 million In 2011, with the full implementation of or 32% from 2007-2010. a demand driven system at all levels of qualifications (Certificate I through This yearly growth in income is a direct result of steady increases in our delivery of to Advanced Diploma), we expect education and training services. However, costs have risen in line with, and in some to be paid for every student contact cases ahead of, increases in operating income. The challenge for Bendigo TAFE in hour we deliver (with the exception of 2011 is to address the problematic issue of unviable courses where the number of delivery within Corrections facilities). students attracted to courses, and hence the income generated, simply does not Consequently, there will be no need to cover the costs of delivery, assessment and corporate support, including buildings restrict delivery in 2011 and beyond. and equipment. For a number of years Bendigo TAFE has continued to deliver some courses with With further significant growth in delivery declining student numbers in the hope that changes to content, methods of delivery to young people counterbalancing and assessment would improve their attractiveness and hence their viability. In the decline in enrolments in higher many cases we have been very successful in this, aged care courses being a case qualifications, and careful management in point where reforms to pedagogy have revitalised student numbers. But the of potential unfunded delivery, Bendigo demand for other courses has remained stagnant or been in decline. Increasing TAFE balanced its operational budget demand in other parts of our business, which we are finding difficult to service due in 2010. This is a significant achievement to limited resources, means that in 2011 we will need to further re-direct resources of which the management and staff of from courses that are no longer attractive to students to those that are. Bendigo TAFE are very proud. Careful analysis and planning in 2010 for 2011 has enabled us to identify where our This result has been achieved in the face best opportunities for future growth are, as well as courses that may require tough of the market pressures described above, decisions to be made regarding their future delivery. and the significant costs associated with Overall we are cautiously optimistic about our prospects for 2011, especially given the implementation of Skills Reform at the recent introduction by the new Victorian State Government of Concessional the operational level. Skills Reform has Diplomas for those under 25 years. required us to introduce a number of new administrative processes, as well as Of the 10,960 students who studied with us in 2010, we are pleased to report that re-engineer just about all of our existing more of them completed their course of study than in previous years. Our module business and administrative processes. load completion rate for 2010 was 76.2% which is an increase of 1.6% on 2009. This Much of this work is still in progress, and is a pleasing result and reflects our increasing and ongoing preoccupation with is not without its benefits to our staff and improving student retention as measured by students completing their intended customers alike. However, the cost and course of study. This may mean they do not complete a whole qualification, since administrative burden in the short term they do not enrol in one to begin with, but we believe if a student successfully has been considerable. achieves what they set out to achieve, then this is a good result, for them and for us. These costs are reflected in a 16% increase in the overall cost of delivery. Unfortunately the results of surveys of our student satisfaction and graduate Tighter controls on the costs of delivery outcomes are down a few percent from the previous year, and will need will be implemented in 2011 with a view to be carefully monitored and measures put in place to ensure this is not a of reversing this result. The introduction of permanent trend. a new course costing tool that provides detailed analysis of the financial viability The National Centre for Vocational Research Survey of student satisfaction of of every course offered by Bendigo TAFE, Bendigo TAFE 2010 graduates reports student satisfaction at 85% compared to will be of great assistance in identifying 89% in 2009. The reported increase in graduate employment after training in 2010 where controls are required. was 3.9% compared to 4.9% in 2009. While our results are comparable with State and National results, nevertheless any downward result is concerning and will be closely monitored. Page 2 In 2010 the first web based Australian our City Campus for the delivery of beauty therapy courses.
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