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South Regional TAFE Annual Report | 2016 Statement of Compliance Hon. Liza Harvey MLA Deputy Premier; Minister for Police; Road Safety; Training and Workforce Development; Women’s Interests 11th Floor, Dumas House 2 Havelock Street West Perth WA 6005 Dear Minister Statement of Compliance for 11 April to 31 December 2016 In accordance with Section 61 of the Financial Management Act 2006 and Section 54 of the Vocational Education and Training Act 1996, I hereby submit for your information and presentation to Parliament the annual report of South Regional TAFE for 11 April to 31 December 2016. The annual report has been prepared in accordance with the provisions of the Financial Management Act 2006. Yours sincerely Prof. Bryant Stokes Duncan Anderson Chair Managing Director Governing Council South Regional TAFE 10 February 2017 10 February 2017 2 | Page South Regional TAFE Annual Report | 2016 Contents Section 4 – Disclosures and Legal Compliance ...................... 85 Section 1 – Overview of Agency ................................................. 4 Other financial disclosures........................................................ 85 Executive Summary .................................................................... 4 Board and committee remuneration ......................................... 87 Governing Council Chair’s report ................................................ 4 Other legal requirements .......................................................... 88 Managing Director’s report ......................................................... 6 Performance management framework ........................................ 8 Operational structure .................................................................. 9 Section 2 – Agency Performance ............................................. 10 Operational overview ................................................................ 10 Performance measures ............................................................ 11 Performance management ....................................................... 11 Delivery ..................................................................................... 11 Reports ..................................................................................... 12 Directorate reports .................................................................... 12 Section 3 – Significant Issues Impacting South Regional TAFE ........................................................................................... 39 Significant issues and economic and social trends ................... 39 Auditor-General’s Opinion ........................................................ 40 Certification of Financial Statements ........................................ 44 Financial statements ................................................................. 45 Detailed Key Performance Indicators information ..................... 80 Certification of Key Performance Indicators .............................. 84 3 | Page South Regional TAFE Annual Report | 2016 Overview of Agency Section 1 – Overview of Agency Recognising the challenges associated with bringing together four organisational cultures, Council maintained regular meetings to Executive Summary provide strategic leadership in this critical area. Meetings were held at campus locations requiring many Council members to travel vast distances. I would like to take this opportunity to thank Governing Council Chair’s report all members of Council for their personal commitment to South Regional TAFE and recognise their time away from family and On behalf of the Governing Council, I am pleased work to participate in Governing Council meetings. Council also to present the inaugural Annual Report for South maximised the use of technology where possible, conducting sub- Regional TAFE. committee and Council meetings by teleconference. The Training Sector Reform Project identified 21 I am pleased to present the audited financial results for South recommendations, the first being to establish two Regional TAFE. These results show that in a tumultuous year, the colleges in Metropolitan Perth and three in college has well-established management strategies resulting in a regional Western Australia. South Regional TAFE small operating surplus. The college made significant headway in was formed from the Narrogin campus of the former CY O’Connor reviewing fixed cost structures maximising a ‘whole-of-college’ Institute, the Esperance campus of the former Kalgoorlie approach where possible. Combined with strict management of Goldfields Institute of Technology, the former Great Southern the college workforce, South Regional TAFE has established a Institute of Technology and the former South West Institute of positive financial management benchmark. Technology. The State Government has recognised the need for new training South Regional TAFE covers approximately 196,600 square facilities in Esperance. This commitment will result in new, kilometres with campuses in 12 regional centres. This includes the industry-relevant facilities that will allow students and staff to cities of Bunbury, Albany and Busselton. access a state-of-the-art training environment in regional Western Australia. Council looks forward to seeing the project progress in In striving to achieve the recommendations of the Training Sector 2017 and remains committed to ensuring the needs of local Reform Project, the college has established a sound governance industry are foremost in the planning phase. framework. Council oversees two sub-committees – Finance Audit and Risk, and Planning, Marketing and Business Development. Council recognises the continued commitment of industry during These committees have enabled Council to maintain oversight of this challenging period for the college. South Regional TAFE is the college by providing considered and informed committed to strengthening already outstanding relationships with recommendations on a wide variety of issues. industry through a comprehensive engagement strategy. This strategy will empower industry to drive skills outcomes for the 4 | Page South Regional TAFE Annual Report | 2016 Overview of Agency workforce of the future. The college remains committed to an industry-led model of training delivery and looks forward to exciting initiatives in 2017. A highlight of 2016 has been the outstanding effort of the staff of South Regional TAFE. Their collective efforts have ensured that training delivered remains industry leading and that students across the college are provided with excellent support. This has occurred in a rapidly changing environment and it is a direct reflection on the outstanding professional commitment by all staff in the organisation. On behalf of the Governing Council, I would like to recognise and thank the staff of South Regional TAFE for their outstanding efforts in 2016. 2016 was a challenging year with great progress made towards the recommendations of the Training Sector Reform Project. Council has embraced the theme of collaboration across the sector, however recognises the significant shift in organisational culture needed to achieve this. Great strides have been made to set the foundations for a progressive, collaborative and innovative organisational culture supported by sound organisational governance. As such, Council will be focussed on ensuring these pillars are built on in a systematic and considered fashion in 2017. Prof. Bryant Stokes Chair Governing Council 5 | Page South Regional TAFE Annual Report | 2016 Overview of Agency Managing Director’s report The new structure has necessitated a review of business operations, which led to the introduction of communities of South Regional TAFE was established on 11 April practice across the college, and the appointment of training 2016 as a result of the State Government’s managers, who drive the formation of partnerships with industry Training Sector Reform Project. Accordingly, this and respond to – and anticipate – market demands with Annual Report details performance of the college appropriate training. from April to December. The new business model is enabling the college to influence The college was formed through the training and workforce development in the regions it serves, to amalgamation of South West Institute of Technology, Great skill people for real employment opportunities and increase Southern Institute of Technology, the Narrogin campus of CY enrolment numbers. O’Connor Institute and the Esperance campus of Goldfields Institute. As the structure becomes established, the corporate cultural foundations laid in the early months of the reform will stand the This new entity encompasses 12 campuses, distributed across an organisation in good stead for building a strong, knowledgeable area of approximately 196,600 sq km. These are: staff base and delivering appropriate training with employment- based outcomes in the coming years. Albany Harvey Bunbury Katanning I am indebted to staff across the entire college for their resilience Busselton Manjimup and dedication to providing a high-quality learning experience for Collie Margaret River students while dealing with the inevitable challenges of the structural change. Ongoing professional development programs Denmark Mt Barker enhance staff knowledge and strengthen relationships between Esperance Narrogin colleagues and with the student cohort, promoting training opportunities and encouraging completion and high achievement. In addition, the college supports delivery of agricultural