Merici College's Kitchen Garden Program Flourishing

No.01 Vol.45 June 2013

4 Charities Commission up and running 25 Professional development update 10 What happens if school fees really are unaffordable? 26 LIGHT – key element to Chapel design 14 A day in the life of a Bursar – African Style 30 ASIC’s areas of focus could impact your school 17 What’s your perspective on superannuation? 31 Olympic dream 18 Merici College’s Kitchen Garden Program flourishing 32 National Quality Framework a year on 20 Govern with confidence – Beyond benchmarking 34 Expanding for today and the future

Published by the Association of School Business Administrators June 2013 Editorial

ithout the interesting John Somerset; KWS Rowing founder aged 50. A 20 year member of ASBA articles provided by Joe Donnelly; Louise Davidson, and long term office bearer at both the W volunteer authors there Business Manager St Mary Mackillop National and State levels, Mike was would not be an Associate. We are College and Catherine Braybon Media known as one of our true characters extremely grateful for the generous and Marketing Manager, St Francis and for his insightful commentary and donation of time and talent of these Xavier College Canberra; Shaun wit. He is sorely missed by the school authors, who share with our members Sargent and Wendy Wills who have communities he touched and by his articles on a diverse range of topics. provided updates on ASBA Professional many friends and colleagues around Contributors for this edition of the Development; Deloitte’s Independent the country. Associate include Barry Wallett, Deputy School experts; and Rosa Piteri from Best wishes Executive Director of ISCA; Tim Baines Camp Australia. As always, our sincere Sue, Kathy and Kristy partner at the UK accounting firm gratitude is extended to our sponsors Crowe Clark Whitehill; retired Bursar whose contributions cover the costs of and volunteer in an African school, publishing the magazine. Barry Peffer; David Eitzen, Fund On a very sad note, earlier this year Development Manager at NGS Super; we were informed of the passing of Keith Vardanega, Business Manager at former ASBA Ltd Director and SA and Merci College; Chartered Accountant, NT Chapter President, Michael Backen,

Members as at June 2013 ASBA Deputy Chairman – Chair of the Associate Committee The Bursars’ Association of New South Wales Inc and Editor of the Associate Association of School Bursars and Administrators (VIC) Inc Kathy Dickson – Shore Association of School Business Administrators (QLD) Inc Blue Street, North Sydney, New South Wales 2060 Association of School Bursars and Administrators (WA) Inc Tel: (02) 9956 1111 Association of School Business Administrators (SA&NT) Inc Fax: (02) 9922 2689 Association of School Business Administrators (TAS) Inc Email: [email protected] Association of School Business Administrators (ACT) Inc Association of School Bursars and Administrators (NZ) Inc Convenor and Editor of the Associate Sue Pynenburg – SCEGGS Darlinghurst Executive 2013 215 Forbes Street Chairman Darlinghurst, New South Wales 2010 Michelle Houwen Tel: (02) 9339 9457 St Hilda’s Fax: (02) 9380 5743 PO Box 34 Email: [email protected] Mosman Park WA 6912 Advertising coordinator Treasurer Kristy Ahearn – SCEGGS Darlinghurst Mrs Geraldine Ilott 215 Forbes Street St Catherine’s School Darlinghurst, New South Wales 2010 17 Heyington Place, Tel: (02) 9332 1133 Toorak, Victoria 3142 Fax: (02) 9380 5743 Email: [email protected]

The articles published herein represent the views of the authors and not Design and production: [onefive4]design > 02 9402 1818 necessarily those of ASBA Ltd. No material may be reproduced without the written authority of the Editorial Committee. ASBA Ltd can accept no Cover photograph: A happy student from Roseville College, NSW responsibility for the content of advertisements appearing herein. enjoying life in Year 1.

2 ASBA ASSOCIATE ASBA Update PROFILE Michelle Houwen BBus (Acc & Fin) AIMM CPA MBA, was elected Chair of ASBA Ltd in April 2012, From the Chair following a period as Deputy Chair and Director of ASBA Ltd, and is the Immediate Past President for ASBA (WA). Michelle has been Business Manager at St Hilda’s Anglican School for Girls since 2004. t’s hard to believe we are into winter national conference. This is one of the already! few opportunities for Business Managers I I hope you had a smooth start to from across Australia and New Zealand we are always in a stunning environment, the year and have managed to keep on to come together to meet, relax and and this year is no exception as we head top of all the changes, be it Australian take some time to listen and learn about north to the beautiful city of Cairns in Curriculum, Commonwealth Funding, what is happening in the broader School Queensland. National Charities Commissions and Business Managers community. The Queensland organising committee their various working parties, Privacy Act, We all know the importance of have done a huge amount of work to Overseas Students Legislation, Fair Work ensuring we keep abreast of changes bring to you a first class conference and Act etc... whilst of course still running the in technology, compliance and other I encourage you to take the time to join business side of your school. You would government and legislative areas in our us in September. You can find all the be forgiven for feeling exhausted already! organisations, and the inspiration that information at www.asba2013.com.au. Over the summer the national ASBA comes from listening to world standard See you in September. committee have been working on a speakers, but often the real take away Michelle Houwen number of fronts, underpinned by the value in these conferences comes in National Chairman, ASBA Ltd recent review of our Strategic Plan. We finding the next brilliant idea for your [email protected] are hopeful that these will come together school. at our May Directors’ meeting. These ideas can take many forms. Your State Presidents and ASBA It might be picking up tips on how to Directors have had a first look at the streamline your administration processes revamped website and the feedback has and save money, or ideas on ways to been positive. We are now in the process provide more meaningful data for your of finalising this for launch to members. governing body. It might be finding Some of the chapters are taking up the the perfect product for that security opportunity afforded by ASBA Ltd to use or maintenance issue that has been our Secretariat, and in time the website, to bugging you as you wander through the initiate and collect their 2013 Membership exhibitors’ hall. It might be the opportunity Fees. This process will ensure the to talk to a few bankers or insurance accuracy of our member database on the brokers in one place about what new website and will save the states time and products or systems are available to ease money. your concerns. Like with any website though, once Personally I find some of the most launched it is ongoing maintenance and valuable tips are often garnered when upkeep of content that really determines you are relaxing and mixing with your its usefulness. The consistent supply colleagues from other parts of Australia of relevant and up to date information and New Zealand and discussing is imperative for it to add value. This is how they might deal with a problem or one of the challenges we are mindful situation. There are always staffing issues of and as a volunteer organisation we that can be dissected and new ideas or will continue to rely on our members to strategies suggested. provide such support going forward. It is amazing how being in a place One of the more important offerings where everyone ‘understands’ the day from your national ASBA organisation to day pressures you deal with can help is the coming together of professional you to refresh your outlook and feel learning and collegiality at our biennial supported. It does help of course that

JUNE 2013 3 Update Charities Commission up and running

Barry Wallett, Deputy Executive Director, Independent Schools Council of Australia, discusses the implications for Independent Schools of the functioning of the Australian Charities and Not-for-profit Commission (ACNC).

s The Australian Charities and audited accounts. Section 23 of the Act to the ACNC. A draft of the 2014 general Not-for-profit Commission requires grant acquittal by 30 June in the information statement is on the ACNC A (ACNC) is now up and running year following the program calendar year. web site. and following its official launch in Schools should be aware that the At this stage, the South Australian Melbourne on 10 December, has been general information statements (which Government and the ACT Government increasing its public profile since that are not financial statements) will be have already agreed to amend their time. They now have their own web required by the ACNC from the end of charity legislation to transfer all regulatory site, www.acnc.gov.au, which contains the 2013 calendar year. Schools that are responsibilities to ACNC. an increasing amount of important incorporated as Companies Limited by ISCA has been in discussions with the information on their operations and Guarantee and previously reported to Commission on a number of issues of particularly advice for current and ASIC, their reporting will now be directly interest to independent schools and how prospective charities. The Commission the ACNC might interact with the sector has undertaken a range of community over the coming months. The Commission consultations around Australia earlier this has been asked to consider providing year, not only to publicise their operations, “ISCA has been in specialised contact staff for the schools but also to provide important operational sector, school specific charity information information for charities, including discussions with and training for AIS staff so that they can discussions regarding the proposed new run school information sessions as part governance arrangements. the Commission of AIS training activities. Commissioner All schools that are currently charities Susan Pascoe was supportive of these will be automatically transferred to on a number of suggestions and ISCA will continue to ACNC from 1 July 2013. However, under work to have these arrangements put in special transitional provisions of the issues of interest place. ACNC legislation, full financial reporting to independent The ACNC has also been asked to ACNC will be delayed for non- to consider the issue of substituted government schools until the end of the schools and how accounting periods for all independent 2015 calendar year. This is because the schools. The ACNC legislation sets funding agreement between the Australian the ACNC might financial year reporting, however allows Government and individual independent for a substituted reporting period to be schools, also specifies that under section interact with the granted by the Commissioner. In regard 24 of the Act, independent schools are to independent schools, the current required to provide to the Minister (via sector over the calendar year reporting period is required DEEWR) by 30 April each year following by the Commonwealth under the Schools the relevant program year, a Financial coming months.” Assistance Act 2008, and as such ISCA Questionnaire drawn from independently requested the ACNC consider a whole-of-

4 ASBA ASSOCIATE sector approval for independent schools In December last year, the Government and reflect a minimum set of basic to move from a financial year period to a released for public consultation a governance outcomes for registered calendar year, however this was rejected paper on draft governance standards charities, whilst providing entities with by the Commission. for charities registered with the ACNC flexibility to determine how they achieve By now, all schools that are charities and draft regulations on the new ACNC these outcomes in the context of their should have received a communication financial reporting framework. These organisation’s particular circumstances. from ACNC requesting not only updated consultation papers were prepared by The One positive aspect of the Regulations organisational information, but also Treasury. The draft governance standards covers the definition of the not-for-profit seeking direct confirmation if the school covered six topics, including the purposes (NFP) nature of registered charities. wishes to have a substituted accounting and NFP nature of charities, accountability For the purposes of the regulations, period approved. ISCA strongly suggests to members, compliance with Australian NFP has the meaning given to it by that schools reply to this request (by the laws, responsible management of the common law. It is well recognised 3 June deadline) in order for the ACNC to financial affairs, and suitability and duties under common law that the delivery of update the schools accounting period to of those who manage charities. These educational services to the community reflect calendar year financial reporting. regulations have now been released is a charitable purpose and will satisfy It will become more difficult to have this in the form of five standards (two have the NFP requirement in the Regulations. request dealt with after July 1 this year. been merged from the draft version) continued overleaf

JUNE 2013 5 Ranier Ad Associate 2013 - Final - outlines_cmyk.pdf 1 2/04/13 3:58 PM

Update Charities Commission up and running continued

Schools are however, advised to visit the ACNC web site and become familiar with the governance requirements of the Regulations to ensure that their NFP purpose is adequately reflected in the schools governing documentation. The draft financial reporting regulations set out the content requirements for financial reports lodged with the ACNC and also propose to significantly expand the range of individuals able to conduct a review of medium sized registered charities which could reduce on-going C compliance costs. The final version of M

these regulations is yet to be released. Y ISCA lodged submissions to both the CM original consultation papers in February MY and copies are available on ISCA’s website. CY The establishment of the ACNC has CMY created a number of additional reporting the Parliament on 1 July 2013. A draft treatment of school entities that were K points for schools because of their charity of the proposed legislation has now engaged in associated commercial or status and a number of concerns have been released for consultation and it is revenue raising activities. been expressed by the sector. To address understood that it will be introduced into It is widely recognised that these concerns, the ACNC has set up a Parliament before the end of June. Overall independent schools operate in Non-government School Sector Reporting the definition follows broadly the approach a dynamic environment which is Duplication Working Party with DEEWR to highlighted in the 2011 consultation influenced not only by changing work through the issues associated with paper “A Definition of Charity” and is societal expectations around education, the removal of unnecessary duplications currently being reviewed for its impact on changing demographics and economic in reporting requirements for schools. independent schools. circumstances, but also by changing ISCA and NCEC are both represented Back in February, the Australian government policy. Schools need to on the Working Party which formally Government announced that it will delay make long-term plans and provisions to met for the first time in February. The the (already once deferred) start date ensure their ongoing compliance, quality aim of the group is to work through for implementation of the proposed and viability with any new regulations. issues associated with the removal of ‘Better Targeting for Not-For-Profit Tax The Australian Government’s education unnecessary duplications in reporting Concessions’ measures to 1 July 2014. reform agenda has also had a significant requirements for schools and offer According to Assistant Treasurer David impact on the operations of individual solutions to reduce the impact of these Bradbury MP, the extension was designed independent schools, including through duplications. The Terms of Reference are to facilitate further consultation with the possible changed funding agreements yet to be finalised and the Working Party NFP sector to ensure that the proposed with the Australian Government. The is due to complete its task over a period of changes met the needs of the community, establishment of the ACNC and the twelve months. strengthen the NFP community and associated changed compliance The Government has previously help it grow in the future. Independent requirements for schools may require stated that it will introduce a statutory schools could have been affected by some adjustment by school management definition of charity, via legislation through the proposed changes in the taxation to understand over the coming months.

6 ASBA ASSOCIATE Ranier Ad Associate 2013 - Final - outlines_cmyk.pdf 1 2/04/13 3:58 PM

CMY

K ASBA 2013 double page ad 3-13:Layout 1 27/3/13 3:16 PM Page 1

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Early bird closes on 30 June 2013 – be sure to take advantage of the special member Cindy Shannon Jeff McMullen rates to reduce your overall cost of attendance. Professor Shannon is responsible Dr Jeff McMullen AM is the CEO for leading the implementation of (Honorary) of Ian Thorpe's the Indigenous strategy and Fountain for Youth focussed on The full program and confirmed social functions are now available for your review. strengthening leadership within literacy and early learning in over the University in relation to 20 remote communities. For more information about the conference and more importantly Indigenous Education. to register for ASBA 2013 please visit www.asba2013.com Ngahihi Bidois Gaile Pearce Please contact the Conference Secretariat In his presentation “Ancient Gaile is a Partner with Deloitte ICMS Australasia 61 7 3255 1002 Wisdom Modern Solutions Touche Tohmatsu and will be for Leaders” Ngahihi will discussing Lessons Learnt in for assistance. provide leadership keys to Education and how to secure your develop your professional schools financial security. and personal Leadership. ● Gold Sponsors Mike Walsh Li Cunxin Mike Walsh, author of Li’s story is a living example of Futuretainment and CEO of overcoming adversity and innovation research agency achieving excellence in life. The Tomorrow is a leading inspirational story of Li’s life is ● Silver Sponsors authority on the digital recounted in his memoir Mao’s future. Mike helps prepare Last Dancer. businesses and their leaders for what's next.

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Register for Early Bird discount by ● Sponsors 30 June 2013 www.asba2013.com JUNE 2012 9 Finance What happens if school fees really are unaffordable?

We all know the argument – school fees have been increasing by more than earnings for nearly 20 years. Tim Baines partner at the UK accounting firm, Crowe Clark Whitehill, gives us his personal views on this very real dilemma.

n the latter part of the 1990s and the According to a survey by Post Office early part of the 2000s parents were “The pressures Mortgages in September 2012, the Iable to afford increases in school average age at which people buy their first fees as their houses were increasing in on the next home is now 35. This compares with age value, they were in secure jobs and the 30 five years ago, age 28 10 years ago economic outlook felt good. Even after generation of and age 24 in the 1960s. We can surely the credit crunch hit in 2007, parents did expect this to increase to nearer 40 before all they could to keep their children at school parents are austerity is over. private school and anyway, mortgage One might not think this is too bad as interest rates were low, unemployment likely to be very working lives are extending too but few was predominantly amongst younger people seem yet to have connected this workers and surely, like other recessions different from to the average age at which couples are in living memory, we’d be back to growth having children. This has risen too – but soon. those of the last not as fast. In the mid 1970s the average Good times would return so parents age was 24; it was 27 in 2004 and is now felt; let’s swallow hard and keep paying two generations. ” 30. So, when their first child is aged five, the school fees. and at the point of entering the education In 2008, one year after the beginning system, most couples facing the private/ thought through the consequences of of the credit crunch, the then Chancellor maintained choice will be in their mid- this – including many in leadership roles of the Exchequer, Alistair Darling, gave 30s and making this decision at exactly in independent schools. an interview to the Guardian newspaper the same time as they are thinking about in which he stated that Britain was facing buying a house. Until now, the private CHANGING CIRCUMSTANCES OF “arguably the worst” economic crisis of education decision has always been after FEE PAYERS the last 60 years and that the downturn house-buying – but no longer. Few people would be more “profound and long- The pressures on the next generation of have made this link yet and in my view it lasting” than people expected. In his school parents are likely to be very different may have very important consequences. Autumn Statement of November 2012, from those of the last two generations. George Osborne confirmed that the Many or most will have reached 30 with CUTTING YOUR CLOTH period of austerity for the UK economy some element of student debt still round was being extended and would now their necks and for those now starting The independent school sector has long probably last until 2018. Both statements out at university they could easily expect argued that private education is very high show that the UK economy really is to still have student debt (tuition plus up parents’ priority lists and there is a great facing a longer and deeper period of ‘no maintenance) amounting to the best part of deal of factual support for this line. Parents growth’ than nearly all of us have seen £50,000 at age 30. This is twice the amount do cut back on nearly everything else – in our lifetimes. Yet few of us have really I paid for my first house in 1985! holidays, eating out, hobbies and clothes

10 ASBA ASSOCIATE even during the downturn, only one year recorded overall pupil number reductions. However, what if, in the future, the real problem is not the quality of the product but simply that, however good the education, fee-paying is simply not affordable for most parents, or is only affordable at the cost of not buying their own home? In this case, the issue for independent schools is very simple – the cost of independent education must be reduced (or at least increased by less than earnings/inflation), so that it is increasingly affordable. This would be a real cultural challenge for many of our schools. The remainder of this article looks at how schools, and in particular school heads and bursars, might go about tackling this challenge. Assuming a school needs to make reductions in its fee levels, how might it go about it? The following areas are suggestions, based on my experience of schools, particularly those which have had to face this over the last few years. in order to pay the school fees. However, FACING THE AFFORDABILITY A LONG, HARD LOOK AT TEACHER until now the fee-paying decision has not CHALLENGE SALARIES really been in direct conflict with the one In the past schools have often responded life choice which most Britons view as their to this type of challenge by improving For all schools, teacher salaries are their natural right – to buy and own their own the product. They have reduced class largest cost. And yet, amazingly, it’s an house. What happens if they do conflict sizes, built better facilities, demonstrated area most bursars have little control over. and our next generation of parents have better academic results and provided They may be consulted on the annual cost to choose between private education and a whole range of extra-curricular and of living award but are rarely consulted owning their own house? The jury is out subject choices. In essence schools have about new appointments, new subjects, on this one. It would however be foolish widened the perceived gap between the additional extra-curricular activities, pay to pre-judge the outcome and continue independent and the maintained sectors scales, or additional staff benefits. Further, as if nothing has changed, and that is the and so enhanced the attractiveness of the decisions on ‘contact time remissions’ danger our schools are currently facing. independent education. And, although (giving reduced teaching hours to carry So, what if school fees really are this has increased school fees by out other responsibilities) are invariably unaffordable at the end of this decade, or, significantly more than inflation and taken by the head and yet can have more worryingly that a greater proportion indeed earnings, the evidence is that profound financial consequences in terms of parents are making the house-buying it has worked. The number of pupils in of extra full or part-time teachers needed. rather than the fee-paying choice? How independent education has increased by So, if faced with a need to reduce should schools prepare for this? nearly 10 percent in the last 10 years and, continued overleaf

JUNE 2013 11 Finance What happens if school fees really are unaffordable continued

fees this must be the place to start. Many schools are now, for the first time, looking closely at their automatic increase, performance-unrelated pay scales, which, in some cases can carry on for 20, 30 or even 40 years. Are these still appropriate in an era of a 50-year working life, later retirement and age-discrimination? Schools are putting in place new pay structures, reducing any allowances which are really just part of expectations and introducing performance thresholds on their pay scales. Further, schools are re-reviewing their subject breadths, timetables and contact time remissions to seek to make these more efficient. Research conducted in 2010 i showed that contact time remissions amounted to around 10% of time in even large day schools, rising to 15% in smaller day schools and 20% or savings/improvements or are they more more in boarding schools. For a large cosmetic? Does the education quality school with a teacher salary bill of say outcome really outweigh the capital and “As a sector we £7.5m a contact time cost of 10% or more on-going revenue cost? As a sector we would total £750k per annum or a £375k cannot be are surely going to need to develop some saving if it could be halved. If this was a better capital project appraisal tools which day school with say 900 pupils and fees of oblivious to the measure these service benefits and costs £12,000 per annum such a saving would much better than before. amount to nearly £500 per pupil – major societal a worthwhile sum. RAISING MONEY ELSEWHERE and demographic

DO WE NEED A NEW BUILD? Many schools are looking properly at changes fundraising/development for the first For most schools in the 2000s the answer time and, if successful, this is surely part happening to this question has been “yes”. However, of the answer. Asking alumni who have most schools now have good facilities benefited from the school’s education, around us.” (and some have outstanding ones) and, if or those parents who can afford to do the issue is fee affordability not education so, to donate to help the next generation quality, the answer could increasingly of children, is not just good business this identified that boarding schools in be “no”. Maintenance is unexciting but sense but part of building a real inter- particular can be very successful doing can achieve much the same outcome generational school community, where this, probably with the greater emotional in most schools. I am therefore seeing one generation helps the next, a model commitment to the school they can draw schools beginning to consider new-builds many schools in the USA are quite used on. Day schools can be successful too, in a real payback way. What will it cost to. In 2012 I conducted the first detailed but the evidence suggests that the real and what will be saved? Are these real survey of fundraising in UK schoolsii and drive and commitment of the head and

12 ASBA ASSOCIATE governors, the active involvement of the case in the last 10 years. Whilst central CONCLUSION alumni society and a minimum three to ordering (or at least greater scrutiny on As a sector we cannot be oblivious to the five-year investment horizon is essential. signing off commitments) can be viewed as somewhat bureaucratic, it is the model major societal and demographic changes happening around us. School fee A COST-SAVING CULTURE adopted by schools which are in trouble and is therefore one which schools affordability may well become a real issue The evidence suggests that when should be looking at more closely. Few over the next 10 years, particularly when schools really do need to reduce costs, organisations nowadays have such a wide set against house-buying choices. most schools do have a well of support spectrum of individuals able to sanction We would do well to be sharpening up from staff to draw on in order to do so. expenditure and tighter times may call our act to meet these challenges. However, when times are good many for tighter measures. More modern IT costs are not really examined as closely systems can help a lot here. This article has been reprinted with kind as they might be and things are allowed permission from Independent Schools’ to pass which would not be sanctioned in Bursars Association (ISBA) tougher times. The challenge for school i Teacher Pay and Benefits Survey 2010 management is to bring in a slightly ii Building for the Future – the 2012 National tougher culture than has maybe been the Fundraising and Development Survey

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JUNE 2013 13 Our diverse profession A day in the life of a Bursar – African Style

Tired of the same routine day after day? Fees, budgets, The cash economy means you meetings some of which can be incredibly boring and always need to have ridiculous amount of cash on hand watching the clock until knock off time? When you retire, why not volunteer at an African school – no two days will ever be the same – but the experience will be great. Barry Peffer, describes his challenging seachange.

esterday started really well. may not wait until after lunch, please go ‘protective custody’ imagine the treatment Electricity and water, so a hot now!” Time to get back to bursar work. for a suspect during interrogation. You Yshower was enjoyed and then Oh drat Mr Ludoves Lalushewekja now have to remember this is not Australia. off to school to start work at 7.00am. wants payment for the rice and cabbage Police instructions are that the girl has Students have assembly every day at delivered today for the students’ lunch. to be taken to Kwaigira Health Centre to 7.45am and classes finish at 4.00pm. Oh One of the problems of a cash economy be checked for pregnancy and a written not again! A power blackout at 8.30am is you always need to have ridiculous report provided. So off to the hospital for causes frustration. These outages are amount of cash on hand to meet all the test and into the maternity section we regular occurrences and really hampers needs. This includes when building, items go. It appears that half the town mothers are there waiting with tiny infants. In Africa working on the computer. Students need such as 200 bags of cement. to be given cash to travel to the dentist you have to get used to waiting. So we It’s now 10.00am and the (45km) or the hospital (17km). One wait, and wait. Eventually Belmembe headmaster’s wife, who is quite unwell student is suspected of having typhoid is called and the reason for her visit is so can’t drive, needs to travel to Mutable so is off to see a doctor (8km) in a 14 explained. “I am sorry but we cannot do (23km) to collect a pregnant student, seater shuttle taxi which usually means this test as we do not have the necessary Belmembe, who had run away and has 27 passengers. You become very close to equipment” Imagine! A town of 7,000 and been placed in ‘protective custody’ at the your neighbours, some of which I am sure a pregnancy test cannot be carried out at police station. The headmaster is away haven’t washed in a week. the hospital! Injuries caused by the police at a conference so the bursar gets called Now to talk to the students whose were recorded on the form for the police, parents haven’t paid their school upon. So off we go to collect Belmembe, but police investigating themselves – fees – I send for the first one. Another along the only bitumen road in the whole that’s not going to happen. We need to interruption. The petrol for the water district fortunately. Protective custody make a photocopy of the form so off to pump from the creek has run out and means a night in the cells. Student the local diocesan office where we knew we need more – that can’t wait. Being comes out in tears and most distraught they have a photocopier. Sorry no power. one of only two licensed drivers on site as she had been beaten with sticks for We had forgotten they are on the same it’s a case of loading the car with some not mopping the cell properly. If this is power line as the school. There is no grid, 20 litre drums and driving to the nearest village to get some fuel. OH&S! What’s that? Back at school. Oh I forgot about the student waiting to see me. “Okay your parent didn’t come back with the money as promised so go back home and don’t come back until you have the money. No, you may not go back to class. No, you

Right: School outbuildings

14 ASBA ASSOCIATE Some children walk a long way to school and have to carry heavy bags Assembly begins every day at 7.45am and classes finish at 4.00pm just a single line running over 100km. pregnancy testing is beyond me and it Now we have a dilemma. Do we So now we have to travel to Rwebiba took six trainee nurses to complete. Oh return Belmembe to the police for more hospital for the test. This is a trip of 20km well, I guess it keeps them busy. Now ‘protective custody’ especially with the down into the valley, across the swamp, on to see the doctor and wait. After report showing injuries sustained while up the escarpment and along the ridge. consultation back to registration who then in their care, or do we break the law and This would be considered an interesting sends us to the laboratory where we wait. not return her to them? An interesting Saturday afternoon drive for an Australian Eventually Belmembe is given a small discussion topic for a regional bursars’ 4WD club but here is just part of everyday bottle and sent off to the choo (toilet). meeting one day. The girl is an orphan driving. The road grader is sitting on the Back she comes with the specimen so with no family so has no one to care for side of the road with flat tyres and looking we wait until the lab has done the test. It’s her. By law once pregnant she cannot more and more like a permanent feature now mid afternoon and we haven’t eaten continue at school so must be expelled. at that spot. The climb up the escarpment since early morning which was a bread A lot of discussion with local teachers would challenge the fittest of athletes but roll for breakfast. So we send the student as to what should be done takes several all the locals do it constantly and some off to find some lunch. A mewdazi which hours and finally at 10.00pm the day students six days a week. We passed is like a dry stale donut/rockcake cross finishes. No electricity and no water and a three boys pushing a bicycle up one of is quite welcome. Eventually we are cold tea. So what’s new! the steepest sections loaded with two called back to see the doctor and wait Tomorrow is another day – maybe 40kg bags of rice. Better than any gym again. At last the official letter confirming some bursars’ work will get done then. workout as they probably had about 3km pregnancy is received. We now need the What I describe here may sound a bit of uphill to go. official stamp of the hospital so back to far-fetched, but I assure you it’s all true At the hospital we speak to a staff the cashier and pay for the letter to be and part of what makes volunteering in member and explain what we want. stamped. The cashier does not have an African school both rewarding and “Go over there and wait” we are told. the stamp though, she will have to take challenging at the same time. You Eventually we are attended to and the it to the person who does, so we wait really must try it when you retire. inevitable form is filled out. Now to the some more. Eventually the letter comes Please note: names and locations have been cashier and pay so you can see the back stamped and we can go. It’s late changed to protect identities. doctor. Next to the area where the student afternoon. is weighed. What this has to do with

Accommodation is cramped and basic

JUNE 2013 15 Extend_ASBA_Ad_05-03-13 - No Lock In Contracts - CMYK.pdf 1 5/03/2013 10:27:27 PM

CMY

K Extend_ASBA_Ad_05-03-13 - No Lock In Contracts - CMYK.pdf 1 5/03/2013 10:27:27 PM

Superannuation Strategy or compliance? What’s your perspective on superannuation?

Whichever way you look at it, superannuation represents a major cost impact on a school’s budget. Notwithstanding this, superannuation is seldom at the top of a business manager’s list of priorities and in many schools it is viewed merely as a compliance cost, and treated as such. David Eitzen, Fund Development Manager at NGS Super, shares his perspective.

ny other cost centre of such of permanent disability or death. Such significant financial impact situations can cause significant financial C on a business would usually and emotional stress to employees and

M A be analysed and evaluated in terms their families as well as the employer,

Y of its strategic significance, but for and in the caring, community culture of a

CM some reason superannuation seems school, there is often an expectation that to fly below the radar. Yet there’s no the school will assist both financially and MY logical reason for this. Superannuation in kind. There’s little doubt that insurance CY should form a part of the HR and Risk obtained through superannuation is very CMY Management strategies of any business working lives to build their nest eggs. cost effective, but things such as insured K and the selection of a default provider There’s also a need for their retirement levels, eligibility and claims criteria can should be undertaken with due reference funds to be invested in a vehicle that affect its practical effectiveness. to the organisation’s overall objectives in provides good financial returns over the So, the challenge for school these areas. longer term, and in an environment that is business managers is to stop looking at From an HR perspective, tax effective. Importantly also is that staff superannuation as a compliance issue superannuation is a valuable tool in feel comfortable and secure in both the and to start asking its current or potential assisting staff to move through the vehicle in which their retirement savings default providers how they can add value later stages of their career and towards are housed, and the level of risk to which to the school and its staff by addressing retirement. The last thing that a staff they are exposed. And of course as they the school’s overall strategies and member needs is to be forced to work get closer to retirement, there’s a need objectives. beyond the time when he or she feels for them to understand the interaction ready to retire, just because there is a between the Centrelink pension and a PROFILE lack of sufficient retirement savings (either superannuation based retirement stream. real or perceived) to enable them to move So from an HR strategy viewpoint the David Eitzen was Director of out of the workforce. And one of the last periodic evaluation of the school’s default Corporate Services at Westminster things that an employer needs is staff superannuation provider against such School in Adelaide, having hanging around as their motivation and criteria is sound business practice. served nearly 21 years in the role. enthusiasm for the job declines. The other aspect that needs to During that time he was involved Accumulating retirement assets be considered in the evaluation of a extensively with ASBA at both is a long term proposition so there is superannuation provider is the availability State and National levels. He now a real need for staff to be sufficiently of cost effective insurance options to works part time with NGS Super financially literate from a reasonably mitigate against the risk of extended and advises that organisation early age to enable them to understand absences from work through injury or on matters relating to non- the process and the strategies that can illness, or even the trauma of not being government schools. be implemented over the course of their able to return to work at all as a result

JUNE 2013 17 Environmentally sustainable developments Merici College’s Kitchen Garden Program flourishing

In 2012 Merici College won the ACT Sustainable Cities Award and the Young Legends award for its unique Kitchen Garden Program, an initiative of Keep Australia Beautiful ACT. Later that year Merici went on to be awarded a Commendation for Initiatives in Youth Engagement at the Keep Australia Beautiful, Australian Sustainable Cities Awards. Bursar/ Business Manager, Keith Vardanega, tells us more.

ver the past year Merici College which are sold at the canteen. This means CREATING COMMUNITY has worked hard to consolidate that knowledge about how to plan and Merici College is committed to ensuring and expand its Kitchen Garden prepare seasonal meals is included in O that the garden can be used to create Program. The garden has expanded and their Vocational Certificate qualifications. a community that is committed to there are several large garden beds that Students use a state-of-the-art glass sustainability and that stretches beyond are used to grow produce for the Merici house to propagate seedlings, which are the walls of the school. College canteen. The canteen continues then planted in the garden. Every week, students from the Black to offer students and staff healthy, cheap, Merici has also created an Indigenous Mountain School spend time at Merici, locally sourced, freshly cooked meals and Garden to encourage a cross-cultural mentored by Year 10 students. Together, snacks on a daily basis. understanding of land management and food production. they spend time working in the garden and kitchen to prepare the fresh food for EDUCATIONAL BENEFITS In summary: cooking. Merici College views the garden as a • Merici students are learning how to In addition to this, Merici seeks hub for learning and encourages every grow their own vegetables and think opportunities to share its experience Faculty to integrate it into their teaching. about how these skills can be used to with other schools, learn from them Sustainability relates to every aspect create more sustainable communities. and support them to establish Kitchen of our world and thus must be taught • The Merici canteen has a no-waste Garden Programs. In 2012 for example, holistically. In addition to this, the garden policy. This means that real cutlery, Merici participated in the EcoBus Tour by allows each student to do something; the plates and cups are used, minimising visiting other schools and hosting a lunch simple skill of learning how to produce packaging and recycle, and all food and tour for 60 students from several your own vegetables and fruit often produce is composted and then used secondary schools. Merici students leads to innovative thinking about how in the garden beds. participated in two Kids Teaching Kids sustainable communities can be created. • The Merici canteen uses produce Conferences and hosted an inter-schools Such thinking is encouraged by from the garden, and when necessary conference to ensure that dialogue offering every student and teacher the sources local and sustainable food. between schools continues to grow. opportunity to volunteer in the garden. This reduces the school’s carbon The awards are certainly a reflection Additionally, it has become a core footprint. on the dedication of a large number component of several courses. Students of people over the last few years in • The program promotes learning in the Sustainability elective spend time many initiatives: the kitchen garden, to minimise water use in land working in the garden each week and Hospitality’s use of home grown seasonal management, particularly through the back in the class room they relate this produce, the Black Mountain Mentoring Indigenous Garden. to concepts around local sustainability program, the Environment Sustainability . and food systems. The senior hospitality Team, the Sustainability elective, the classes use the produce to cook meals glass house and the chicken house.

18 ASBA ASSOCIATE Some of the wonderful produce the girls from Merici College have harvested

Congratulations to all staff and students who have contributed to the sustainability initiatives at Merici College from their conception through to coordinating the logistics and effective use of these projects. The Merici canteen uses produce from the garden

Merici students are learning how to grow their own vegetables and think about how these skills can be used to create more sustainable communities

JUNE 2013 19 Govern with confidence Beyond benchmarking

John Somerset, Chartered Accountant and Director of the Independent Schools Council of Australia, discusses the benefits of benchmarking and the ability to positively influence the future viability and sustainability of your school.

ccounting standards and the BENCHMARKING PAST PERFORMANCE Corporations Act require a signed statement by governors that The annual Non-Government Schools every dollar of gross income but the A Financial Performance Survey (FPS) is sample average is 12 cents). Without the school is solvent (able to pay debts as and when due). Increasingly (via the a cost effective tool (from $440), which appropriate action this school is at risk of Australian Charities and Not for profit provides crucial information about past financial distress. The school now has a Commission and general fiduciary duties) performance eg. relative operating “roadmap” for future action. this responsibility is being extended to surplus, income/costs per student and continued on page 22 principals and business managers who staffing ratios. The example in figure 1 are intimately involved in guiding the indicates this school has relatively high operation of the school. debt and relatively low profitability (Net Assessment of solvency involves a operating margin is 6 cents surplus for judgement regarding the period extending #5*0 "063 #5*/( "0633'1035*/( #-- #(' up until 12 months after audit date (to %)00- %#5'(03: %#5'(03*'4 6.$'3 about May 2014). We need accounting 7'3#(' 7'3#(' information about the past, but we must !03,*/(#1*5#- apply that towards the future. How do we do that? What is our potential #4)-08&'26#%: performance? '*/7'45.'/5

/5'3'4507'3

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Figure 1: Example summary page from an individual school’s FPS report

20 ASBA ASSOCIATE Somerset test school - Australia Annual index applied to benchmarks (%): 5

2010 2011 2012 2013 2014 2015 2016 You set the Are we solvent? indexation factor for Working Capital Ratio 0.7 0.8 0.8 0.9 1.1 1.2 1.1 benchmarks. This Benchmark 0.8 0.8 0.8 0.8 0.8 0.8 0.8 affects dollar value Cash Flow Adequacy 0.51 0.85 1.21 0.66 1.01 0.78 0.98 benchmarks only Benchmark† 0.85 0.85 0.85 0.85 0.85 0.85 0.85 % Trade debtors to fees 9.6% 6.9% 5.8% 4.9% 2.3% 2.3% 2.3% billed Benchmark 6.1% 6.1% 6.1% 6.1% 6.1% 6.1% 6.1%

Are we profitable? Earnings before interest depreciation and amortisation $1,263,878 $1,498,280 $1,969,672 $2,187,411 $2,511,540 $3,008,557 $3,188,150 (EBIDA) Your school’s ratios Your EBIDA would be this if you performed at sample $2,275,119 $2,468,637 $2,607,380 $2,738,607 $2,900,258 $3,076,658 $3,199,619 are compared average Estimated cash from with the average $2,212,612 $2,040,083 $1,826,035 $2,231,996 $1,980,625 $2,636,642 $2,727,235 benchmark directly operations underneath Operating margin 7.7% 8.4% 10.5% 11.1% 12% 13.6% 13.9% Benchmark 13.9% 13.9% 13.9% 13.9% 13.9% 13.9% 13.9% Income per student $12,767 $13,778 $14,507 $15,156 $15,735 $16,605 $17,268 Benchmark* $13,686 $14,370 $15,089 $15,843 $16,635 $17,467 $18,340 Discounts as % of fees 8.1% 8.2% 8% 8.1% 8.3% 8.4% 8.6% Benchmark 8.9% 8.9% 8.9% 8.9% 8.9% 8.9% 8.9% Teaching salaries per $6,975 $7,097 $7,003 $7,076 $7,371 $7,692 $8,060 student Benchmark* $6,301 $6,616 $6,947 $7,294 $7,659 $8,042 $8,444 Total expenses per student $11,782 $12,616 $12,984 $13,473 $13,841 $14,348 $14,877 Benchmark* $11,778 $12,367 $12,985 $13,635 $14,316 $15,032 $15,784 Green indicates Student/Teacher- Primary 16.1 16.1 16.5 16.9 17.0 16.9 16.9 ‘Okay’ relative to Benchmark 17.8 17.8 17.8 17.8 17.8 17.8 17.8 sample average Student/Teacher - 11.0 11.2 11.4 11.8 11.9 11.9 11.9 or predetermined Secondary benchmark Benchmark 11.6 11.6 11.6 11.6 11.6 11.6 11.6 Are we sustainable? Depreciation Impact 66% 76% 99% 72% 79% 64% 66% Yellow indicates Benchmark† 53.5% 53.5% 53.5% 53.5% 53.5% 53.5% 53.5% ‘Caution’ Reinvestment 186% 78% 27% 123% 53% 99% 70% Benchmark† 96.4% 96.4% 96.4% 96.4% 96.4% 96.4% 96.4% Debt per student $6,852 $6,505 $5,518 $5,834 $5,041 $4,940 $4,339 Benchmark* $9,693 $10,178 $10,687 $11,221 $11,782 $12,371 $12,990 Interest cover 1.9 2.4 3.4 4.4 4.7 6.4 6.9 Benchmark 3 3 3 3 3 3 3 Notes: * Benchmarks are based on 2011 data. Benchmarks have been indexed upwards at 5 per annum for 2012 to 2016, and downwards at 5 for 2010. † Based on estimated cash from operations

Page 7 Figure 2: Example SKI Report analysis page

JUNE 2013 21 Govern with confidence Beyond benchmarking continued

BENCHMARKING FUTURE BEYOND BENCHMARKING – PERFORMANCE POTENTIAL TO PERFORMANCE

You can apply these simple principles to The Gonski review identified the need budgeted data and assess the impact for high-quality infrastructure to maintain of decisions about future operations, enrolments. Solvency/viability is linked planned capital expenditure and to enrolments, which is linked to future CONTACT borrowings. This vision into the future development which is funded by (crystal ball) allows an assessment borrowings and surpluses. Borrowing John Somerset is a Chartered of future financial viability, and in my links to increased costs – links to Accountant who has been experience, helps prevent future financial increased fees – links to affordability and working with ASBA on the FPS for distress. This assessment crystallises student retention – links to profitability (the almost 20 years. He is currently potential into performance by clearly mitigating factor). The secret to financial a director of Saint Stephens “dollarising” strategy. viability is to maintain a balance between College, Coomera and President of The Somerset Key Indicator (SKI) profitability and borrowings (figure 3). Independent Schools Queensland Report assesses data from 2010 to 2016, It is our job to provide user-friendly and director of Independent allowing you to not only compare your financial information so that governors Schools Council of Australia. performance trends (past and planned) and senior management can make This year’s FPS closes on 30 June but also with a sample of similar schools informed decisions about the future – 2013 and participation starts from (see figure 2 on page 20). Whether a fiduciary responsibility. Benchmarks just $440 including GST. you use this tool or develop your own, and key performance indicators (KPIs) For further information about the process of benchmarking future are a means to an end. I encourage you Somerset Education visit www. performance is a must for business to produce and use that information somerseteducation.net. or email administrators. to move beyond benchmarking and [email protected] positively influence the future viability and or telephone 1300 781 96 sustainability of your school.

Future Borrowing development

Profitability

Student Fees and Cost DISCLAIMER numbers grants management We publish this article only for non-government schools in Australia and New Zealand. All material should be regarded as information only and individuals should rely on their own enquiries when formulating decisions for themselves or their clients. In no way do we warrant or guarantee any changed circumstances for a school from use or non-use of Figure 3: Financial viability and sustainability cycle this material.

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JUNE 2013 23 Waterman Receivables Management KNOWS YOUR BUSINESS and currently provides the following services to over 50 schools:

DEBT ON-LINE FACILITY LOCATION ENQUIRIES FIELD CALLS COLLECTION 24 hours direct access Need to talk to your professional results based service to your ﬁles customer/clients. We can assist. customers/clients? Our agents are able to

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Watermans boasts exceptional levels of expertise in the collection of outstanding school fees. A REFEREE LIST CAN BE PROVIDED UPON REQUEST. Watermans recruits only experienced, professional, enthusiastic staff. Continued training and company loyalty to staff translates in to successful results. Weekend and after-hours phone calls to parents dramatically increase collection results. All phone calls are conducted from our Melbourne offices

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Level 2, 45 William Street | Box 213 Melbourne Vic 3001 | Phone 03 9605 0703 | Fax 03 9605 0788 Email [email protected] | Contact Person Andrew Stavropoulos Waterman Receivables Management KNOWS YOUR BUSINESS ASBA Membership and currently provides the following services to over 50 schools: Professional Development Update DEBT ON-LINE FACILITY LOCATION ENQUIRIES FIELD CALLS COLLECTION

24 hours direct access Need to talk to your The Professional Development Standing Committee of the professional results based service to your ﬁles customer/clients. We can assist. customers/clients? WHO IS CSA AUSTRALIA AND ASBA Limited Board has been busy working through the Our agents are able to WHAT IS THE LINK TO ASBA? various initiatives contained in the Board’s Professional You may have noticed on the ASBA Development Action Plan 2012-17. website homepage mention of the CSA/ASBA alliance. Through Waterman Receivables Management this alliance you can apply for a 65% rebate on the cost of CSA DEBT MANAGEMENT SPECIALISTS Certificate courses, advises Wendy Wills FCIS/FCSA. ome of the Committee’s activities We hope that the ASBA Technical Update Wendy who is Business Director The Waterman Receivables Management philosophy is to be an integral will already be evident to members. proves to be a valuable resource for of Pembroke School has recently part of your ﬁnancial management team, not simply a third party provider. One significant achievement has members and we would love to hear your S been appointed National been the launching of the ASBA Technical ideas about how we can make it even President of CSA Australia. CSA Update bulletin in December 2012. This more useful for you. Watermans boasts exceptional levels of expertise in the collection of outstanding school fees. is a professional membership periodical email bulletin is designed to The Professional Development A REFEREE LIST CAN BE PROVIDED UPON REQUEST. association for chartered/ meet a number of needs to enhance your Standing Committee met in Melbourne on corporate secretaries, governance membership of ASBA, as follows: Friday 22 February 2013 to acknowledge Watermans recruits only experienced, professional, enthusiastic staff. advisers and risk practitioners. progress achieved with our Action Plan in Continued training and company loyalty to staff translates in to successful results. • Keeping members abreast of Wendy asks…does this sound the past year and to consider high priority key developments impacting on familiar? It should, because it also Weekend and after-hours phone calls to parents dramatically increase collection results. initiatives for 2013. Some of our plans for schools and the roles of senior describes much of what we do as the year include: All phone calls are conducted from our Melbourne offices school administrators. The bulletin school business administrators. supplements more in depth technical • Development and expansion of CSA members are drawn from articles appearing in The Associate resources on the ASBA website, the corporate, not-for-profit and magazine by providing frequent including a national calendar of government sectors. Through CSA technical content with web links to professional development opportunities they are able to pursue common interests, provide advice, contribute further information on particular topics. and a library of content from chapter to policy submissions to various • Making members aware of professional based presentations. government agencies, assist with development and technical resources • Expanding relationships with similar education and training and serve Client Focus | Product Knowledge | Superb Staff accessible on the ASBA website as the international associations with a view on State and National Councils. functionality of the new website is fully to sharing professional development Most CSA members have a primary implemented. resources. Technological Edge | Value for Money qualification in either law and/or • Promoting professional development • Exploring partnership opportunities accounting and a number of ASBA opportunities, including courses and with other professional associations members are already members conferences, available to members to obtain access for ASBA members of CSA. Andrew Leake, Business through ASBA Limited or third party to resource libraries and qualification / Manager at Wenona School in providers. accreditation courses. North Sydney and Wendy are also • Facilitating a collegial and national members of CSA State Councils. approach to professional development Should you have any feedback about Further information on CSA and the At Watermans we have developed a debt collection strategy that has assisted by providing information about the initiatives outlined above, or have any benefits of undertaking the CSA/ activities in each chapter and access to suggestions concerning professional your industry achieve outstanding results. Our wealth of experience will ensure we ASBA course can be found at resources developed at a chapter level. development activities, please contact the exceed your expectations and ensure you remain at the forefront of your industry. Standing Committee Convenor, Shaun www.asba.asb.au Sargent at [email protected]

JUNE 2013 Level 2, 45 William Street | Box 213 Melbourne Vic 3001 | Phone 03 9605 0703 | Fax 03 9605 0788 25 Email [email protected] | Contact Person Andrew Stavropoulos BER project LIGHT – key element to Chapel design

‘I am the Light of the World’ (John 8:12) According to Business Manager Louise Davidson, light has played a major role in the design and construction of the new chapel at St Mary MacKillop College, Canberra. Sitting in this ‘beacon of light’, worshippers can immerse themselves in both the sacred geometries and wonderful religious symbolism.

t Mary MacKillop College Canberra geometries and light. The Chapel’s intent the white frosted glass allows the clear is delighted that Collins Caddaye is to provide a minimalist space where glass Cross to be illuminated by natural SArchitects (winners of the ACT AIA– nature and light are presented within light and provide a visual connection Canberra Medallion 2012) have selected white frosted glass, timber and natural to the serene garden beyond. Along the College Chapel as a nomination for marble. the base of the wall, the white frosted the ACT AIA 2013 Awards. The Chapel’s east wall folds around glass is elevated to reveal a narrow strip The Chapel for St Mary MacKillop to the north comprising a double layer of clear glazing in which the reflection College is designed as a sanctuary where of external clear glass and internal white pond, which tracks around the wall in the worshippers are surrounded by sacred frosted glass. The white frosted glass is outdoor courtyard. geometries and symbolism. The Chapel’s divided into segments forming a Cross The Chapel’s western and northern simplicity brings together nature, sacred which embraces the room. The break in walls are finished with an Australian

26 ASBA ASSOCIATE The southern wall that adjoins the school’s corridor is a double layer of white frosted glass

The Chapel’s intent is to provide a minimalist space where nature and light are presented within white frosted glass, timber and natural marble

timber veneer whilst the flooring is of marble. These highly detailed finishes fill the space with natural warmth. Featured on the northern wall, are the words of Mary MacKillop “We are but travellers here (1867)”. The southern wall that adjoins the school’s corridor is a double layer of white frosted glass. The material allows the Chapel to ‘glow’ from the corridor, giving the sense that the Chapel is a ‘beacon of light’ and is present in the everyday life of a student.

JUNE 2013 27 Advertorial For additional information contact Daniel Hunter on 0408 606 704 or Hunting for value please visit www.huntind.com.au

It is always surprising that Business Managers live and die on their budgets, often with little true control over what is in their expenses category. With departments splitting their purchasing across many suppliers, problems can appear. Numerous suppliers bring multiple invoices, varied costs and plenty of backorders, not to mention less control over quality and sustainability.

INTEGRATED INNOVATIVE SUPPLY SUPPLIERS VALUE MANAGEMENT + = o, how can business managers control the overall operating costs of a school while meeting WHS and S WHS designed programs and ongoing schools (and their contractors) to build sustainability responsibilities, all under the innovation from Hunters. All this comes ‘an environmental and WHS cleaning continuing pressure to get more value for as a result of working collaboratively program’ to effectively reduce the burden money? with our supplier to make optimal of compliance, reduce risk and improve As suppliers continue to innovate and purchasing decisions”. the overall environmental impact the differentiate their product offerings, new cleaning department or contractors are This type of value-add delivers ways of adding value have emerged. having on the school. These programs can bottom line savings and stronger value Hunter Industrials are one supplier that encompass operations in maintenance, propositions for the schools that choose to has worked with schools to funnel the boarding houses, on-premise laundry, engage them. spending of all departments such as kitchen, catering, and janitorial services. cleaning, on-premise laundry, kitchen, Try to think of supply more broadly than GO GREENER WITHOUT and maintenance through one program. just products. Consider the other benefits COMPROMISE Hunter’s integrated supply management your school can derive from strategic approach has enabled them to deliver The pressure for schools to comply with partnerships that deliver even greater tangible environmental outcomes, and WHS and environmental sustainability is support. drive higher levels of work, health and stronger than ever. This is highlighted in Hunters, together with their partner Tork safety standards throughout these the United States where laws exist in two for example, not only provide products of departments and cost centres. states for schools to demonstrate a ‘Green quality and economy with sustainability Michael Arceri, Business Manager at Cleaning Program’. built in, they also give you expert analysis Camberwell Girls Grammar, attests to their Closer to home, there is a moral of your paper consumables on site, involvement obligation for schools to demonstrate a identify usage reduction methods and “Cleaning, consumables, on premise similar program, yet many schools struggle install quality dispensing systems. Tork’s laundry, kitchens and our early learning to make a concerted effort to change. policies of responsible fibre sourcing facilities, all had costs associated with The prevailing reason for this is a lack and manufacturing in conjunction with cleaning and hygiene products. We of control over what is actually used on products that are designed for less use needed better value for the money sites and the inaccurate assumption that to and less waste, means meeting your spent and through working with Hunters go green means compromising on value. green procurement targets has never been we have been able to effectively This is where funneling your purchasing easier. This is all without compromising manage costs, while implementing a decisions through value-oriented quality or cost. school wide WHS and environmental organisations can deliver you programs Be it Hunters, or another innovative program. We receive training from which in turn adds value to your school. supplier, think about harnessing buying qualified trainers, detailed registers; Hunter Industrials works with over 90 power to get more value for your dollar.

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JUNE 2013 29 Compliance ASIC’s areas of focus could

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its impact your school member firms, or their related entities (collectively the “Deloitte Network”) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. Exactly what are the implications and how will ASIC’s recent About Deloitte Australia – In Australia, the member firm is the Australian partnership of Deloitte Touche Tohmatsu. areas of focus, revenue recognition policies and compliance As one of Australia’s leading professional services firms. Deloitte Touche Tohmatsu and its affiliates provide audit, tax, consulting, and financial advisory services through with conditions for expense deferral affect your school? approximately 6,000 people across the country. Focused on the creation of value and growth, and known as an The team at Deloitte Private take a look. employer of choice for innovative human resources programs, we are dedicated to helping our clients and our people excel. For more information, please visit our web site at www.deloitte.com.au. Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Touche Tohmatsu Limited © 2013 Deloitte Private Pty Ltd.

n ASIC’s most recent ‘areas of focus’ be provided until sometime in the future. or in full. AASB 1004 was not included in bulletin revenue recognition policies In this case it is likely that the refundable ASIC’s areas of focus at 31 December Iand compliance with conditions for deposit would be accounted for as a 2012, but should also be reviewed. expense deferral were highlighted and liability until such future time that service is We would recommend management should be reviewed by governing bodies rendered; review their policies and interpretations in of schools who comply with Australian ii) Enrolment fees: Where an enrolment fee relation to revenue recognition to ensure Accounting Standards. The implications is non-refundable and is paid purely to they are compliant. of the ASIC focus areas highlighted are secure the right to have a child attend a discussed below: school, management may determine that 2. EXPENSE DEFERRAL there is no future service to be rendered ASIC highlight that expenses should only 1. REVENUE RECOGNITION that relates specifically to that enrolment be deferred where: fee. In this scenario, in contrast to the ASIC identified that directors and auditors refundable deposits, management may • the deferral of such costs would meet should review revenue recognition policies conclude that the revenue should be the definition of an asset; to ensure that revenue is recognised in recognised in the Income Statement on • that there is a resource controlled by accordance with the substance of the receipt; and the school from which it is probable underlying transaction. This includes iii) Tuition fees: Schools that bill before the future economic benefits are expected ensuring that services to which the year end for tuition that will be provided to flow to the school; and revenue relates have been performed. by the school in the coming year or years Each type of income should be • the requirements of the intangibles would be expected to defer recognition considered separately to ensure that the accounting standard are met, including of that revenue in the Income Statement trigger points that have been historically the specific requirements to expense until the year in which the school provides used to recognise revenue in the Income as incurred the costs associated with the tuition services to the student. Statement are consistent with the commencing new operations and relocating current operations. accounting standards, to the extent that a Non reciprocal grant income (eg. particular school is required to comply with recurrent per capita grants) should be considered with reference to AASB the Accounting Standards. Some specific MORE INFORMATION examples might include: 1004: Contributions. Such grants may be required to be recognised as income For further information, please i) Refundable deposits: A deposit paid by in a period that is different from the contact Deloitte Private’s School a parent that is refundable (eg. against period in which such funds are spent. experts Gaile Pearce, Partner in future school fees, returned to the parent Similarly capital grant income may also be Sydney (02) 9322 7158 or or donated to the school) may not meet required to be recognised as income on Alison Brown, Partner in revenue recognition criteria on the basis receipt, regardless of whether the capital Melbourne (03) 9671 6120 that the service to which it relates will not expenditure has been incurred, in part

30 ASBA ASSOCIATE Outside of school Olympic dream

Not content with steering the Kinross Wollaroi School Rowing team to their most successful year ever, KWS rowing founder Joe Donnelly, has been making dreams come true for the Vietnamese Rowing Team as well.

oe Donnelly and the Vietnamese team recently returned from the JLondon Olympics, where they were the centre of plenty of hype and excitement. A former Australian Men’s VIII cox, Joe became associated with the Vietnamese rowing program in mid-2009, having travelled to the country with his wife for many years. Under Joe’s guidance, and despite the lack of financial assistance and medical support, the Vietnamese women’s lightweight double scull team managed to qualify for London. The team finished 16th in the world at the Olympics, where they came 5th in the C Final. Attending Olympic functions in Hanoi and seeing where the Vietnamese athletes lived gave Joe a new sense of appreciation for their achievements. He was amazed by their happiness despite their living conditions, as well as the physical commitment and dedication they put into rowing. The Olympic experience was also invaluable for the Vietnamese rowers who have now set their sights on qualifying for the 2016 Games.

Right: Joe Donnelly with members of the Vietnamese women’s rowing squad at the Olympic Village in London

JUNE 2013 31 Compliance National Quality Framework a year on

A year on from the National Quality Framework (NQF) implementation in After School Care, Camp Australia National Child Care Manager, Rosa Piteri, reflects upon the challenges and opportunities as well as highlighting the common traps of the NQF.

ith the National Quality after school care rating was based on the does encourage and reward providers Framework (NQF) now firmly highest graded individual element, under for delivering and improving the quality of Win place across Australia, the NQF rating system is based on the care. many School Business Managers or lowest graded individual element. The NQF Is helping to ensure kids have Bursars have had to come to grips with For your After School Care to be access to the highest quality care – care its increased regulation as well as the ‘meeting’ or ‘exceeding’ the standard, they need and deserve. It benefits families consequences of not complying with the every element must be operating and schools highlighting the value After standards. effectively and in line with the Framework. School Care can bring to a child’s and a As we move into the second year of The assessment takes a full view of school’s educational experience. the Frameworks implementation (first the service, looking at everything from year for WA as it was adopted In August signage, activities to records. A total of 2012) the Government has signalled 58 different elements are rated over a 20 QUALITY PEOPLE an increased focus on assessment week process. and rating. The Government has also The new assessment and rating Key to the National Quality Framework promised that ratings will be made public. process is intense and there is significant is the new qualification requirements for The question is how do business potential for your After School Care to After School Care staff. Care is moving managers or bursars ensure their school be rated below the standard, however away babysitting and towards education, and after school care meets or exceeds there is also opportunity for reward and new requirements recognise this and the the standard? improvement. No one likes being rated as positive impact After School Care can have In this article I will set out some bellow the standard, but this new method on school communities, families and kids. common traps of the NQF assessment Finding the right people to be part and rating, drawing on experiences of of your school community is vital to managing school aged care services in successful After School Care, however more than 400 schools across Australia. being the right fit is no longer enough. After School Care must have the correct ratios RATINGS of staff to children and ensure all staff have appropriate qualifications – whether You and your school may be surprised in it be a degree or diploma, as well as the transition from the National Childcare working with children check (or equivalent), Accreditation Council (NCAC) regime to first aid, anaphylaxis and asthma. Staff the National Quality Framework (NQF) that members must also fill defined roles within the overall rating for your After School Care After School Care – meeting specific has dropped. This will be primarily due to requirements under the NQF. a change in how the ratings are awarded. The role of the Certified Supervisor Under the NCAC regime the overall can be particularly challenging for

32 ASBA ASSOCIATE PROFILE

Rosa Piteri has over 20 years’ experience in school aged care services. As National Child Care Manager for Camp Australia she is responsible for the provision of services to more than 400 schools.

your school community can be tough it is well worthwhile, as the benefits to children and the school are expansive.

MEETING THE STANDARD

Below is a quick guide to key elements of the NQF After School Care assessment and rating. When you are preparing for the rating and assessment of After School Care at your school the standards need to be considered in relation to:

• Signage • Child Information Sheets • Enrolment forms • Custody orders (where relevant) • Medical management • Dietary requirements • Management of roles • Quality Improvement Plans • Programing • Child observations • Child profiles • Program evaluations school communities. Your Certified Supervisor they can be difficult to find, • Training of educators Supervisor must be recognised by the keep and replace. It can be particularly • Development of educators relevant regulatory authority in your State, trying to replace the Certified Supervisor • Educational leader development meeting qualifications, experience and at short notice. Adding to this is the NQF management requirements. Certified requirement that Nominated Supervisor SUMMARY Supervisors need three years or more cannot be the Certified Supervisor. experience in working as an educator, an NQF defines the roles separately as The NQF sets out to ensure all Australian approved diploma-level education and while the Certified Supervisor is the person children, no matter their location, get the care qualification, or an approved early that oversees the day-to-day operation best possible start in life through high childhood teacher qualification. These of you After School Care, the Nominated quality after school care. requirements are in addition to the working Supervisor takes on an advisory, broader Implementing a common approach to with children check (or equivalent) and role – looking at the bigger picture and After School Care has its challenges, but appropriate first aid qualifications. ensuring the NQF is applied correctly. it also brings opportunity. The opportunity Your Certified Supervisor must be onsite As you are aware, qualified, skilled and to set your school apart by delivering at all times when After School Care is committed professionals are essential convenience to families with high quality, operating and is responsible for the day-to- to delivering high quality care, within you engaging After School Care building on day care operations. school and also in After School Care. While the school’s educational experience far Given the requirements to be Certified finding the right, qualified person to suit the outweighs its challenges.

JUNE 2013 33 Student Services Hub Expanding for today and the future

Catherine Braybon, Marketing and Media Manager at St Francis Xavier College, Canberra, shares the excitement of the opportunities that have been created by the school’s new Student Services Hub.

t’s been a few years in the making The space has been designed to bring Offices for key staff members have been and now the wait is over. Students people together. It is aesthetically pleasing strategically placed for students to access Iand staff at St Francis Xavier College and provides access to technology. The easily, allowing teachers to be available to have full use of the newly built Student students have a large space for connecting students which encourages interaction and Services Hub. The architectural design has with others, while having a continuum of enables support. created space for everyone, including the services, being close in proximity to both Senior students in Years 11 and 12 have expanding population of Senior students at the Resource Centre and the Canteen and a new Senior Common Room, which is the College. dining room. This will meet the needs of again close to learning facilities and the St Francis Xavier College is a Catholic students with sustenance and information Canteen. This room is designed to give Coeducational college for students Years gathering. them a separate space for learning and 7-12. We are committed to delivering Extra classrooms and teaching areas connecting. There is a new Staffroom quality education, and encourage our are a key component to the development; upstairs, giving staff a wonderful facility for students to grasp opportunities and aiming to accommodate our current professional learning. learning with enthusiasm and commitment. students, while looking to the future. We have a strong academic program, providing a diverse range of subjects, with an emphasis on pastoral care and student development. Living the truth, leading with courage and learning for life is our motto that runs deeply through the culture at St Francis Xavier College. We are fostering growth in the future leaders of our community and create ways for students to participate in outreach programs and community service. We know that children’s learning environments are paramount to accomplishment and our learning spaces have been created to allow the use of light, air and space. The new Hub is no exception. It is impressive, encompassing a large open plan gathering space, lined with glass windows, and filled with couches and tables for student’s to come together, create ideas, relax and learn.

34 ASBA ASSOCIATE Celebrating 25 years service: 1988-2013 The NGS Super Scholarship Awards are now open!

Up to six $5,000 professional development scholarships will be provided to NGS Super members working in teaching, school management or support staff positions. For more information or to apply online, please visit www.ngssuper.com/scholarship-awards.

NGS Super Pty Limited ABN 46 003 491 487 AFSL 233 154

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