Annual Report 2014-15 The Honourable Yvette D’Ath MP About this report Attorney-General and Minister for Justice and The 2014-15 Annual Report for TAFE Queensland Minister for Training and Skills has been prepared in accordance with the GPO Box 149 Financial Accountability Act 2009, the Financial and Brisbane Qld 4001 Performance Management Standard 2009 and the Contents TAFE Queensland Act 2013. Dear Minister, To meet State Government requirements, a minimum I am pleased to present the Annual Report number of copies of this report were printed. 2014-2015 and financial statements for TAFE TAFE Queensland Queensland. Level 9, 133 Mary Street, Brisbane QLD 4000 PO BOX 16100, CITY EAST QLD 4001 I certify that this Annual Report complies with: Phone: +61 7 3514 3600 • the prescribed requirements of the Financial Fax: +61 7 3514 3650 Accountability Act 2009 and the Financial and www.tafeqld.edu.au Performance Management Standard 2009; and TAFE Queensland is committed to providing accessible services to Queenslanders from all culturally and • the detailed requirements set out in the linguistically diverse backgrounds. If you have any Annual Report requirements for Queensland difficulty in understanding the annual report please call Government agencies. TAFE Queensland on (07) 3514 3600. TAFE Queensland Annual Report 2014-15 A checklist outlining the annual reporting © TAFE Queensland 2015 requirements can be accessed at ISSN 1322-5154 (Print) ISSN 2205-4677 (Online) www.tafeqld.edu.au This annual report is licensed by TAFE Queensland under Yours sincerely a Creative Commons Attribution (CC BY) 4.0 Australia licence.
CC BY Licence Summary Statement: Warren Tapp Board Chair In essence, you are free to copy, communicate and adapt this annual report, as long as you attribute the work to TAFE Queensland TAFE Queensland. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/au/deed.en Attribution: Content from this annual report should be attributed as: TAFE Queensland Annual Report 2014-15
TAFE Queensland’s primary role is to provide premium Our business is organised across six regions who vocational education and training services and to provide each offer a variety of applied vocational qualifications further education to support and complement the provision – certificates, diplomas, advanced diplomas, degrees, of vocational education and training services as well associate degrees, and graduate certificate/diplomas that as produce and sell vocational education and training respond to the training demand of their local industry and products. communities. TAFE Queensland has a proud 130 year history of TAFE Queensland’s footprint covers an area from Thursday delivering the skills that Queenslanders need to grow and Island in the North, Mount Isa in the West, Coolangatta in prosper. Though our form has changed many times since the South and Hervey Bay in the East. then, our mission has remained true - Our 6 Regions are: “To be an efficient, sustainable, responsive • TAFE Queensland North organisation that develops individuals’ skills and • TAFE Queensland South West employment opportunities by meeting employer, • TAFE Queensland East Coast industry and community needs.” • TAFE Queensland Brisbane The organisation has undergone significant change • TAFE Queensland Gold Coast over the past twelve months after separating from the • TAFE Queensland SkillsTech Department of Education and Training and becoming a statutory body.
2 Contents
Letter of Compliance 2 Skills That Drive the Queensland Economy 25 TAFE Queensland – Our Story 2 TAFE Queensland Regions 26 Board Chair’s Message 5 Board 28 Chief Executive Officer’s Message 7 Executive Management 29 TAFE Queensland – Financial Snapshot 8 Other Reporting Requirements 34 TAFE Queensland – Stronger Than Ever 9 Finacial Statements 2014-15 37 Strategic Plan 2014-18 12 Management Certificate 64 Highlights 14 Independent Auditor’s Report 65 Year in Review 16 Glossary 67
Annual Report 2014-15 | 3 This annual report marks a significant milestone in the history of TAFE Queensland.
4 Board Chair’s message
This annual report marks a significant milestone in the history of TAFE Queensland.
After our first year of operation as an independent statutory body, I am pleased to report that TAFE Queensland has made significant progress against Myuma (a not-for-profit training organisation) and its ambitious strategic agenda. industry partners to deliver exceptional employment outcomes for indigenous students across North We have been given a unique opportunity to chart Queensland. our own course as an independent organisation. TAFE Queensland continues to innovate and TAFE Queensland has adapted well to significant expand the range of learning options and changes in the training market and economy, educational pathways available to our students. and is stronger than ever, delivering outstanding operational and financial results in 2014-15. Our partnership with the University of Canberra will see TAFE Queensland significantly expand our Since its appointment in 2013, the Board has higher education offering to 22 undergraduate and strengthened TAFE Queensland’s commercial 3 postgraduate programs. focus and capability. Our focus on delivering great experiences to students and employers has This exciting partnership will allow VET students to allowed us to continue to be the premier provider continue their learning journey with us, benefiting of vocational education and training in Queensland from our focus on applied learning and the and beyond. development of skills that provide a competitive edge in the job market. Our exceptional people have managed significant organisational change in the face of heightening TAFE Queensland has now cemented its position competition while maintaining student satisfaction as a premier further education provider and is of 87.9 per cent and employer satisfaction at 89.7 drawing the recognition of VET providers from per cent. across the country for our response to the reform of the VET system. Over the past 12 months TAFE Queensland has delivered some significant achievements including On behalf of the Board I would like to thank TAFE Queensland SkillsTech being included in all management and staff for their hard work BRW’s Most Innovative Companies List for the third and commitment over the last year and their year in a row and a range of other industry awards contribution to the year ahead. detailed in this report. Our efforts across 2014-15 have provided a strong I am proud of the progress we continue to make foundation that positions TAFE Queensland well to in strengthening our relationship with industry to respond to future market challenges and continue deliver work-ready graduates with skills that drive to thrive as a vibrant and relevant contributor to our economy. industry and community. 2014-15 saw a new partnership with Echo Entertainment to establish the first Six-Star Hotel and Hospitality School in Queensland as well as continuing partnerships with Bechtel Australia Warren Tapp Ltd to source and train 400 apprentices for the Chairman Curtis Island Liquefied Natural Gas Plant and with TAFE Queensland Board
Annual Report 2014-15 | 5 For TAFE Queensland, 2014-15 has been a year of significant change, consolidation and innovation.
6 Chief Executive Officer’s message
As Queensland’s largest, most experienced and most trusted training provider, in 2014-15 TAFE Queensland delivered practical, industry-relevant training to more than 125,000 students. Just twelve months ago we were given a mandate to become a single, highly efficient and effective Event of the Year for TAFE Queensland Brisbane’s organisation. We implemented an ambitious Graduation Ceremony; and the National Meat organisational change process to reshape the Industry Training Provider of the Year Award. business to better support the development of skills across Queensland’s communities and industries, And we have done all this, in the face of significant necessary for economic and social prosperity. change, while maintaining financial results that are in line with our budget expectations. We also launched a new brand with a view to changing the public perception of TAFE in the Our offering to students has never been stronger hearts and minds of our customers. The new brand with over 640 courses across an ever expanding and associated campaign has delivered strong number of qualifications from traditional certificates results for TAFE Queensland with 96 per cent to graduate certificate/diplomas, advanced brand awareness, 71 per cent of job seekers with diplomas, associate degrees and degrees. an improved perception of TAFE and 85 per cent Our many industry partners continue to not only consideration among potential students. support TAFE Queensland but also our students. Over the past year we have responded to the Our links with organisations such as Toyota challenges and our results indicate that we are Australia and the University of Canberra mean we stronger than ever. can provide our students with the most relevant education and training available. We are investing more than $17 million in our product with development occurring across more This report highlights just a few of the many than 60 qualifications, in both the vocational examples where TAFE Queensland is working and higher education areas. We are focussed hand-in-hand with industry to provide the most on enhancing the student experience, ensuring valuable training possible. students are job-ready and in demand and It is testament to the hard work and unerring continuing to provide seamless pathways to work dedication of our entire staff that TAFE Queensland and study. has come through the challenges a stronger, more We are also investing in our staff like never before agile and relevant organisation. and have renewed our focus on Workplace Health This is borne out in the various surveys conducted and Safety (WHS) with regional Safety Action Plans recently that show satisfaction levels of both and a new state-wide WHS Management System students and staff increasing and, importantly, the driving higher levels of safety awareness and perception of TAFE Queensland, and its ability to management. provide a quality education, at an all-time high. In June 2015, we held our inaugural TAFE TAFE Queensland’s vision is to continue to be the Queensland staff awards in combination with an market leader of high-quality vocational education innovation workshop where more than 150 award and training in Queensland and target markets nominees developed new ideas focussed on beyond. enhancing both our service delivery and our already strong work culture and environment. Together we will continue to make great happen. Over the course of the past year we have received a number of international and national awards for best practice and excellence including the World Federation of Colleges and Polytechnics (WFCP) Gold Excellence Award for Social Development being awarded to TAFE Queensland for its Jodi Schmidt commitment to social development through the Chief Executive Officer Australia-Pacific Technical College; the Corporate TAFE Queensland
Annual Report 2014-15 | 7 Financial snapshot
TAFE Queensland has focused its effort in FEE-HELP and commercial client revenue streams. consolidating our organisation under the “one TAFE Government subsidised training revenue performed Queensland” banner. Despite some significant shifts well particularly in the Higher Level Qualifications in market share arising from full contestability of and VET in School streams. Government-subsidised training in Queensland, we returned an operating profit of $73.8m on a turnover TAFE Queensland focused on efficiencies within of $695.2m for the year. The result comprises a its staffing levels and expense management during $39.8m surplus from core business activities and the year to ensure its operating expenses were a $34.0m underspend driven by the timing and managed in line with the level of training demand capitalisation of expenses relating to major ICT from its customers. Employee expenses and systems renewal projects. Profits generated from supplies and services were ahead of expectations. core business activities are re-invested into the TAFE Queensland has reported a strong cash business to support TAFE Queensland’s growth position at the end of its first year of operating strategy and other corporate priorities. as a statutory body. This position enables TAFE This operating profit was generated by the Queensland to insulate the business against business units within TAFE Queensland, providing potential future expenses relating to the ownership a sustainable return from services to its customers. and maintenance of assets used in the running of This result was also impacted by delays in the the business. execution of certain information technology change projects planned for the first year of operations.
As a statutory body, the focus of TAFE Queensland is on driving commercial outcomes with a continued Operating performance: 2014/15 shift away from a reliance on government grants and financial highlights $’000 contributions to alternative revenue streams. Income 695,224 Expenses 621,404 Highlights from the first year of operations are provided below. Further details are contained in the Operating Surplus 73,820 financial statements. Cash and cash equivalents 222,256 Total Assets 350,985 In response to increasing contestability in State Government subsidised training during 2014-15, Total equity 225,082 TAFE Queensland has continued to diversify its Current ratio 2.6 revenue mix to ensure financial sustainability. Quick ratio 2.5 Despite an overall market share reduction during User charges revenue/Total revenue 58.3 the year, TAFE Queensland reported strong domestic training revenue, particularly in the VET
Other Revenue 2.8% Domestic Training 21% Supplies & Services 34.6% Grants & Subsidies 0.2%
Depreciation & Amortisation 1.3%
International Training 5.4% Other Expenses 0.5% Income by Expenditure Grants & Contributions 41.7% management Severance by management reporting Payments 3.7% reporting classification classification
Government Subsidised Training 20.7%
Commonwealth Training Employee Programs 8.3% Expenses 59.7%
8 Stronger than ever
In the face of an ever changing environment, TAFE Queensland has achieved outstanding results. We have returned surplus results at the same time as the introduction of full contestability and other significant reforms of the VET sector, while also diversifying our sources of revenue to protect against our historical over-reliance on government funding.
The hard work and dedication of the TAFE Queensland staff has created a more financially Student profile viable and stronger organisation. Through a more engaged workforce we have developed a dynamic TAFE Queensland delivers training across a wide brand that is raising the profile of TAFE Queensland range of industry training groups through a variety of nationally and internationally, and created one TAFE delivery modes. Training delivery at TAFE Queensland Queensland, turning over nearly $700 million dollars is demand driven with both industry and students per annum, as a competitive force in Queensland’s driving the types of courses we offer. Due to our size further education and training market. as Queensland’s premier public provider we are able to respond to training market demands across a TAFE Queensland offers a breadth and depth of wide range of industry training groups. offering that reflects the diverse needs of industries and communities across our broad geography. TAFE Queensland training delivery is derived from With programs across 23 Industry Training Groups, a wide variety of fund sources including: User our major areas of delivery include community Choice for apprentices and trainees; Certificate services, health and business. TAFE Queensland’s 3 Guarantee (C3G), VET in Schools (VETiS) offering spans from foundation skills and entry and Higher Level Skills (HLS) for mainstream level workforce qualifications to higher education government funded students; Fee for Service degrees providing individuals with training options for commercial clients and individual fee paying at every stage of their career and employers students including those accessing VET FEE-HELP with skilling solutions that respond to complex and FEE-HELP for Higher Education offerings; and workforce needs. International funding. TAFE Queensland provides training to a diverse student profile including school leavers, upskillers, career changers and job seekers. This broad age profile is representative of the community and demonstrates our commitment to delivering training to our students at any stage of their career.
TAFE Queensland students come from a diverse range of cultural backgrounds.
Retail 2.82% Arts & Entertainment 2.97% Community Services 12.18%
Automotive 3.51% Fee for service 43%
Hospitality 4.52% C3G/HLS/VETiS 35% Unique Unique Students Top 10 Students by Engineering 5.62% source of Study Areas Construction 8.42% by Industry funding
International Utilities 6.74% Business 4%
Business 8.2% User choice 16% Other 2%
Health 7.61% Annual Report 2014-15 | 9 Unique Students by Age Group Queensland Government Subsidised TAFE Queensland Market Share 100% 2013-14 2014-15
22,500 75%
15,000 50%
7,500 25%
0% U 15 15-17 18-19 20-24 25-29 30-34 35-39 40-44 45 & over Cert I Cert II Cert III Cert IV Diploma Advanced Diploma AQF Level
Changes in the Queensland VET Market
In 2014-15 TAFE Queensland saw the introduction The impact of contestability has seen TAFE of a fully contestable training market under the Queensland’s market share of Government Queensland Government’s VET Investment subsidised training reduce in 2014-15. As is Framework. The effect of the VET Investment illustrated in the above graph, TAFE Queensland Framework has seen changes in subsidy paid by has experienced a loss of market share against an Government based on priority, with the requirement increase in overall market activity at the Certificate for individuals to contribute further to the cost III and below level. The proliferation of private of training. It has also resulted in an increase in RTOs entering the Certificate 3 Guarantee market the number of Registered Training Organisations has significantly increased competition driving (RTOs) able to provide State Government subsided prices down. In some cases this discounting has training under the Certificate 3 Guarantee and been at the expense of course duration, Higher Level Skills funding programs. potentially impacting training quality and the capacity of students to apply their learnings to the work environment. Despite these changes, TAFE Queensland remains the largest training Unique Students by Country of Birth provider in Queensland. In contrast, TAFE (other than Australia and New Zealand) Queensland saw more modest market share losses at higher qualification levels as total market activity 3,000 declined in line with reduced state-level funding and the availability of VET FEE-HELP income contingent loans. When coupled with growth in VET FEE-HELP 2,500 programs, TAFE Queensland has seen a significant growth in the proportion of its delivery in higher level qualifications.
2,000 TAFE Queensland’s response to contestability has been focussed on maintaining a high quality offering that provides students with access to
1,500 expert trainers, high quality learning materials and student support services. For this reason, TAFE Queensland students enjoy high competency completion rates at 89.3 per cent and strong 1,000 transitions to employment or further study of 87.9 per cent. We believe that continued investment in our learning products, the capability of our 500 educators and effectiveness of our systems will ensure that our offering will remain of the highest quality, giving our students a competitive edge in the job market. Sudan Afghanistan Fiji of) Republic (Islamic Iran Thailand Japan Vietnam Africa South Republic of Korea Guinea New Papua Philippines India China Kingdom United
10 case study
Instrumentation technician Mark Formosa’s pathway to a career change happened by chance. A qualified chef, Mark was at work one day when an electrician came in to look at some wiring. “I hit him up about what you need to do to be an electrician and ended up working with him. I managed to get an apprenticeship with Unity Water so while I was working I was studying my Certificate III in Electrotechnology at TAFE Queensland SkillsTech’s Bracken Ridge Training Centre.” While going back to study was daunting, Mark took it in his stride. “I thought it would be more like school, with teachers up the front of a classroom drilling it down. The fact they were tradesmen before being teachers meant they explained everything in terms of working as a tradesman—it wasn’t like school, they helped us out. If I didn’t understand something they took the time to make sure I did understand.”
Annual Report 2014-15 | 11 Strategic plan 2014-18
In 2014, TAFE Queensland TAFE Queensland’s purpose is to support the growth of Queensland’s economy by providing high commenced operations quality education and training in Queensland and with greater autonomy and target markets beyond.
ability to function more TAFE Queensland is the largest and most commercially. experienced provider of vocational education and training (VET) in Queensland. TAFE Queensland is also a non-university higher education provider offering degree and associated degree programs.
The Board has defined four-year strategic goals that focus on building a more commercial, high performing culture, while improving academic quality and operational efficiency and building a stronger market position.
Highlights
73.8 125,000 38 Million 87.9 % 62.65% 17.2 57,026
87.9 per cent student Increased per cent of Reported an operating Issued 57,026 Delivered over 38 million satisfaction rating revenue from non-State profit of $73.8m against qualifications. hours of training to over (NCVER Student Outcomes Government sources a budgeted profit of 125,000 students. 2014 – TAFE Queensland from 50.1 per cent to $17.2m. Report). 62.65 per cent against (see financial snapshot an annual target of on Page 8) 59 per cent.
12 Vision Continue to be the market leader of high quality education and training in Queensland and other target markets beyond. Mission To be an efficient, effective, sustainable and responsive organisation that develops the skills and employment opportunities that individuals, industry and community needs for success. Values Commerciality Innovation Teamwork Accountability we are focussed on we bring new ideas we work together we do what we say building a sustainable to life. to achieve our we will do / we keep organisation. common goals. our promises.
Winner of the ‘Corporate Event of the TAFE Queensland Brisbane’s Year’ at the Meeting Events Australia College of Tourism and Hospitality (MEA) Awards for the remarkable (COTAH) won the Tourism Education execution of TAFE Queensland and Training provider of the year at Brisbane’s Graduation Ceremonies. the Queensland Tourism Awards.
Launched Australia’s largest TAFE Queensland SkillsTech has vocational education scholarship made BRW Magazine’s Most program with half a million dollars in Innovative Companies list for the industry–based scholarships to help third year in the row, occupying students meet their career goals. 26th place out of 350.
TAFE Queensland Brisbane TAFE Queensland South West won International Team was awarded the Meat Industry Training Provider the Hong Kong Australia Business of the Year award at MNTRAC Award for Business Excellence. National Meat Industry Training Conference held in Sydney. TAFE Queensland North won the Tropical North Queensland Tourism Award Education Provider of the Year category for the third year in a row.
Annual Report 2014-15 | 13 Highlights
Our Students Our Partnerships • TAFE Queensland Brisbane Fashion Student, Entered into an agreement with the University of Eliza McCabe made great happen on the world Canberra to expand our higher education offerings. stage by featuring her spring/summer 2015 In 2016, TAFE Queensland’s students will have collection as part of the New York Fashion 25 higher education programs to choose from Week show in Manhattan, New York. across a number of study areas including degrees in arts; acting, fashion; gaming; music; visual arts; • TAFE Queensland Brisbane Fashion Student, screen and media; business; dental services; Verity Taylor awarded an international digital design; civil engineering; web design and scholarship to study fashion at the Fashion graphic design and production; and masters Institution of Technology in New York. programs in professional accounting and business • TAFE Queensland Gold Coast’s Automotive management. These programs will be offered from Mechanic student Kurt Trask won a Gold TAFE Queensland’s South Bank and Gold Coast Medal at the 2014 Worldskills Australia Campuses. National Competition in Perth. Entered into a partnership agreement with the • Twenty three TAFE Queensland North University of Tasmania to allow TAFE Queensland students from Tourism, Hospitality, Event staff to apply to the University of Tasmania for a Management programs were chosen to provide HECS free scholarship to study the following: ambassadorial roles at the G20 Finance Ministers and Central bank Governors Meeting in Cairns. • Bachelor of Education (Applied Learning); or • TAFE Queensland SkillsTech former student • Bachelor of Adult and Applied Learning; or Luke Davies won a gold medal for the Electrical • Graduate Certificate in Education (Applied Installation Award at the 2014 WorldSkills Learning). National Competition in Perth. • TAFE Queensland SkillsTech carpentry apprentice Benjamin Morriss won the TAFE Queensland and Echo Entertainment inaugural Exchange Apprentice Ambassador Group finalised a partnership to create the new Scholarship, a joint venture between East Queensland Hotel and Hospitality School. With Coast Apprenticeship and Canadian sister delivery at TAFE Queensland’s South Bank organisation SkillsSource BC. and Gold Coast campuses and partner hotel premises, the school will deliver tailored programs and qualifications to meet developing industry Our Teachers requirements and international standards. • TAFE Queensland Gold Coast’s Executive Director, Education and Training, Lee Russell won the Educational Leadership Award at the AUSTAFE Conference. • TAFE Queensland Brisbane Teacher, Cheryleigh-Anne Lazarus won the award of excellence for her outstanding qualities as an instructor in the Travelport Instructor of the Year Award. • TAFE Queensland Brisbane Patisserie teacher, Ben Haslett was chosen in the Australian Baking Team and competed in the Coupe Louis Lesaffre Cup in Jakarta, a leading event for the World’s Greatest Bakers.
14 case study case
With a swell in student numbers in 2012 due to the growth in the gas industry, TAFE Queensland instrumentation teacher Glen McMurtrie identified a need for a new way to effectively teach large numbers of students but still provide them with hands-on experience. In his own time, Glen designed and constructed three portable process simulation rigs which replicate the variables in manufacturing, refining or treatments plants such as pressure, temperature, weight, density and water quality. Using existing equipment brought in by students and donated by industry, Glen built the simulators which students learn to control and manipulate using computer-based controllers. As a result of Glen’s determination to bring his idea to life, the process instrumentation training delivered at TAFE Queensland SkillsTech is now on par with the best in Australia. Glen was recently recognised for his pioneering approach to learning with a 2015 TAFE Queensland Staff Award for Innovation and a 2015 AUSTAFE Emerging Leader Award.
Annual Report 2014-15 | 15 Year in review
16 Year in review
Strategic Priority – Define our market position
Though TAFE Queensland has a proud history of Our goal is to revitalise our organisation and to serving Queensland’s communities for more than help our customers reimagine what is possible 130 years, our transition from the Department from high-quality VET offering. For some time the of Education and Training on 1 July 2014 into an perception of TAFE was that it was a second rate independent statutory body, means that in many option – something school leavers fell back on if ways we are a new organisation. they didn’t get into university. Research showed that while TAFE enjoyed a high recognition, at 86 The advent of full contestability in the Queensland per cent, only 25 per cent of potential students training market posed a significant challenge for our under 25 considered it as a first choice for further newly formed Board, but our focus has been clear studies. from the beginning: Mid-2014 saw the launch of TAFE Queensland’s To continue to be the market leader of high- make great happen campaign which profiled real quality education and training in Queensland students including mechanics, bakers, nurses, and other target markets beyond. photographers and child care workers. This During 2014-15 TAFE Queensland has deliberately celebration of ‘the doers’ who drive our economy focussed its efforts on consolidating our previously highlighted the breadth of our delivery and its fragmented organisation under the banner of “one strong practical focus. TAFE Queensland”. Despite some significant shifts TAFE Queensland continues to position itself as a in market share arising from full contestability of high-quality provider differentiated by our unique Government subsidised training in Queensland, we mix of industry expert teachers, training materials have continued to focus investment on the quality and learning environments. Continued investment of our offering, to diversify our revenue streams and in our product, staff capability and ICT systems to find the necessary efficiencies to ensure a sound will ensure that our offering continues to be the operating position and a capacity to invest in the quality standard that students should expect from a future. training provider.
Annual Report 2014-15 | 17 When one of the world’s most respected engineering, construction, and project management companies identified a significant skills shortage in the resources industry they turned to TAFE Queensland.
Bechtel Australia identified an opportunity to “We collaboratively solved problems by using source and train 400 adult apprentices within a combination of TAFE Queensland SkillsTech
case study case a designated two year timeframe for their training knowledge and Bechtel knowledge Liquefied Natural Gas (LNG) plants being built on of the construction environment. Using TAFE Queensland’s Curtis Island. Queensland SkillsTech was like a breath of fresh air compared to other RTOs in how they would This led to an agreement with TAFE Queensland mould delivery to suit the needs of Bechtel and SkillsTech and one of the its apprentices” largest single intakes of adult apprentices in Australian history. The TAFE Queensland SkillsTech/Bechtel training partnership resulted in and demonstrated the In November 2014, Bechtel’s goal was achieved. commitment of both parties to meet the skills Keith Butler, Lead Apprentice shortage challenge with a priority to “Up skill Co-ordinator, Bechtel sums up the success Australians”. of this partnership:
18 Year in review
Strategic Priority – Sharpen our industry, employer and student focus
Our high levels of student and employer satisfaction TAFE Queensland’s strategic partnership with the are evidence of the commitment of our talented V8 Supercars in 2014-15 provided a unique learning educators and support staff who strive hard opportunity for numerous automotive, hospitality to ensure the delivery of quality training and and events students to work with V8 Supercars an exceptional customer experience. We listen staff. This exceptional opportunity for our students carefully to our students and maintain strong links came about through TAFE Queensland becoming with our industry partners so that we are better the official education partner of the V8 Supercars able to deliver contemporary and in-demand Championship. training products to address Queensland’s TAFE Queensland has built on its long term skilling needs. partnership with Queensland Rail (QR) to In the past the TAFE sector in Australia has commence the development of a rail training been criticised for being inflexible for students centre of excellence at our Acacia Ridge Campus. and employers and for providing training that The new centre will replace QR’s former training was dated. Our recent Student and Employer facilities at the Redbank workshops, and provide Satisfaction survey results highlight how far we facilities that support training for all types of rail and have come: rail related training and assessment. • 9 4 % 1 of our students said our trainers knew We are committed to delivering services across the what they were talking about and 95%1 of breadth of Queensland and beyond. Our training employers agreed; and provides individuals with the skills and confidence they need to build better and more rewarding lives. • 9 1 % 1 of our students said our training was flexible and 88%1 of employers agreed. TAFE Queensland works in partnership with the Queensland Police Service (QPS) and other In 2014-15 we have continued to strengthen our State Government agencies to deliver training commitment to customer service through the and create employment opportunities for young introduction of student and employer promises people ‘at risk’ through “Project Booyah’. During aimed at improving the consistency of service 2014-15 TAFE Queensland expanded ‘Project provision across our many delivery sites. This has Booyah’, an initiative started by QPS and Child included commencing the rollout of paperless sign- Protection and Investigation Unit in Coomera, up processes for apprentices and trainees. from two to ten locations across Queensland, Our connection with industry and communities creating opportunities for more than 150 young is driven by our six regions who actively engage Queenslanders. with local chambers of commerce, councils, regional economic development groups and local businesses. We work with employers large and 1 Australian Quality Indicator Learning Engagement and Employer Satisfaction Survey 2015 small to ensure they have access to the skills they need to compete and grow in a challenging global marketplace.
Annual Report 2014-15 | 19 Year in review
Strategic Priority – Build our capability and outcomes focus
TAFE Queensland recognises that our people are TAFE Queensland supports our educators to central to our success. achieve higher qualification levels. During 2014- 15, TAFE Queensland supported 180 educators Significant changes to our market over the past two to commence bachelor and graduate certificate years have driven change inside our organisation. programs focussed on applied learning through the As a result we are now a leaner and more University of Tasmania. effective workforce with our focus centred on our customers. Pride in our organisation, the services it TAFE Queensland has also made a strong offers and our close relationship with industry and commitment to ensuring a safe work and community make TAFE Queensland a vibrant and study environment for our students and staff. exciting place to work. During 2014-15, TAFE Queensland rolled out an organisation-wide approach to investing in and In early 2015, TAFE Queensland conducted its enhancing our safety culture. annual Staff Engagement Survey. The 79 per cent staff response rate is the highest result on As part of our focus on rewarding high record. The leading indicators reported by the performance, TAFE Queensland held its inaugural survey included work commitment, job satisfaction, TAFE Queensland Staff Awards, celebrating the teamwork and positive promotion of TAFE achievements of our people. More than 150 award Queensland. nominees were given the opportunity to attend an innovation workshop where they worked side-by- Continued investment in learning and teaching side with TAFE Queensland’s senior executives practice supports our ability to adapt to changes to generate ideas that could assist our staff and in the services our customers demand. With a students to make great happen. clear focus on differentiating our offering based on teaching quality and job-ready students,
Winners The 2014-15 award winners were: Great Achiever Award Board Chair Great Ideas Award Employee of the Year – Steve Cooper, Glen McMurtrie, TAFE Queensland SkillsTech TAFE Queensland North Great Team Award Great Achiever Award Aged Care Team, TAFE Queensland Educator of the Year – Sue Sheppard, South West TAFE Queensland SkillsTech Great Service Award Lifetime Achievement Award Ron Trace, TAFE Queensland South West Graeme Muller, TAFE Queensland SkillsTech Great Safety Award Industry Collaboration Award Workplace Health and Safety Team, Bechtel – Gladstone Team, TAFE Queensland SkillsTech TAFE Queensland SkillsTech Great Business Award Educational Leader Award TELLS (TAFE Queensland English Language and Deb Blow, TAFE Queensland Gold Coast Literacy Services) Team, TAFE Queensland Brisbane
20 Strategic Priority – Innovate our products and services
TAFE Queensland seeks to maintain its position as As an accredited higher education provider, Queensland’s premier vocational education and TAFE Queensland already delivers undergraduate training provider through the continued provision programs to address industry requirements in the of training programs that reflect the current skilling areas of Civil Engineering and Dental Prosthetics. needs of employers. We are expanding our higher education offering in partnership with the University of Canberra and 2014-15 has seen a continued investment in from 2016 students will have 25 higher education new learning products and the redevelopment of programs to choose from across a number of study existing programs to achieve improved consistency areas including degrees in arts; acting, fashion; across the State. Product development activities gaming; music; visual arts; screen and media; have been accompanied by ongoing reviews of business; dental services; digital design; civil delivery models to ensure greater diversity of the engineering; web design and graphic design and learning options available to students. This work production; and masters programs in professional is being driven by the collective experience and accounting and business management. know-how of TAFE Queensland educators through professional learning communities that span 74 Offering applied degrees will provide opportunities program areas. These networks draw together for students to benefit from a strong practical our knowledge about industry and student needs orientation in their studies, as well as a seamless across our State. transition to degrees and recognition of their achievements through articulated pathways. During the year TAFE Queensland introduced TAFE Connect, our new learning management system. In 2016, TAFE Queensland will offer 22 The launch of TAFE Connect included the migration undergraduate degrees and three postgraduate of in excess of 460 existing learning products, and degrees at the TAFE Queensland South Bank and will provide students with a more engaging and Gold Coast campuses. reliable learning platform. Partnerships with universities provide another significant opportunity for TAFE Queensland to build capacity and expand the choice of higher education programs we offer students in the domestic and international markets.
Annual Report 2014-15 | 21 case Alice Litzow is tackling the fashion industry head-on and turning her dreams into reality, one bikini at a time. study The 21-year-old has just launched her first collection of customisable swimwear under the label AlcieMay Designs. “I wanted to create a product where women can mix and match designs with fabrics and tops with bottoms to achieve a truly individual, one of a kind style,” she said. Alice spent two years at TAFE Queensland, where she studied an Advanced Diploma of Fashion Technology and Design. “TAFE Queensland provided me with the practical skills I needed to start my own fashion label,” Alice says. “My teachers are also industry professionals, so they understand fashion business.”
22 Year in review
Strategic Priority – Embed sustainability
Continuing to diversify our revenue streams away These ICT system changes are a part of the larger from State government subsidies has been a key Business Solutions Renewal Program which also focus in improving financial sustainability. Earning includes a new Student Management System to revenue from multiple sources helps to reduce the be implemented in 2016. The Program will deliver impact of policy changes and allows access to significant reductions in operating costs and grow markets outside of Queensland. Key areas process simplification, making it even easier for our of growth for TAFE Queensland include higher customers to do business with us. education and international delivery. During 2014-15, TAFE Queensland undertook TAFE Queensland continues to expand its a major review of its spatial usage across its 50 international activity through both onshore delivery locations to support the development of a and offshore delivery. During 2014-15, TAFE 10-year asset management plan for State-owned Queensland consolidated the considerable training assets. As the primary user of these assets, international expertise from across its regions, TAFE Queensland will play a key role in assisting into TAFE Queensland International. This business the Government to ensure that its training assets unit will market our services through a single are fit-for-purpose and are supporting the efficient brand to drive improved international student delivery of services to industry and communities acquisition as well as continuing to expand our across Queensland. TAFE Queensland is well delivery to offshore enterprises and governments. placed to ensure these outcomes through key Our offshore delivery includes a significant partnerships such as Queensland Rail, University interest in the Australia Pacific Technical College of Canberra and the planned Skills, Academic and which delivers technical training to Australia VET Research Centre at the Sunshine Coast University standards from campuses in Fiji, Samoa, Vanuatu, Hospital. Papua New Guinea and the Solomon Islands. TAFE Queensland has students from over 80 countries studying a range of programs and has offshore operations in China, Vietnam, Chile, Nauru and Papua New Guinea. 2014-15 saw the transfer of the operations of TAFE Queensland from the (former) Department of Education, Training and Employment into the TAFE Queensland statutory body. Through this process, the TAFE Queensland Board oversaw the establishment of all the organisational functions necessary to operate successfully in a challenging market. This included significant preparations to transition to our own payroll and finance systems.
Annual Report 2014-15 | 23 Rechelle Gulliver is not your average plumber and initially felt quite apprehensive about her choice of courses.
“I was concerned about entering the male domain of plumbing. I shouldn’t have worried – my training at TAFE Queensland SkillsTech was second to none, the teaching staff ensured a supportive and positive environment and I was always treated equally.” case study case In 2014 Rechelle completed her plumbing apprenticeship with TAFE Queensland SkillsTech and said her training was first-rate.
A highlight of Rechelle’s apprenticeship was winning gold in the Wide Bay WorldSkills regional heat and qualifying for the 2014 WorldSkills National Competition.
Rechelle’s positive experiences have resulted in her wanting to inspire other women to learn a trade.
24 Skills that drive the Queensland economy
TAFE Queensland develops skills across a range of industry areas that contribute to the Queensland Government’s objective for the community of creating jobs and a diverse economy. TAFE Queensland offers a range of high-level vocational qualifications, degrees, associate degrees, university pathways and articulation arrangements in key industries. These programs are critical to the supply of skills for occupations linked to growth sectors that will contribute to the State’s future economic prosperity. During 2014-15 TAFE Queensland delivered training to more than 125,000 students studying across a wide range of areas and continues to produce graduates with the skills that are driving the Queensland economy. These skills will benefit the Queensland economy During the year there were more than 20,000 for years to come. apprentices and trainees in training at a TAFE Queensland campus. This included approximately Our services are delivered from more than 50 8,900 apprentices and trainees who commenced locations across Queensland. We provide both their training at TAFE Queensland with another online and blended training delivery models to 5,600 completing their qualification. That’s 1,192 apprentices and other workers at their place of electricians, 605 construction workers, 322 employment to ensure training works for both plumbers and 1,149 engineering workers. students and employers. We are committed to assisting our students to access our training, where Beyond the traditional trades, we issued ever they are. qualifications to 2,661 enrolled nurses, 7,388 child care workers, 2,945 community services workers, TAFE Queensland students enjoy high competency 2,158 aged care workers, 2,305 tourism workers, completion rates with 89.3 per cent successful in 2,656 hospitality workers, 688 business workers competency completion and exceptional rates for and 1,721 IT workers. transition to employment or further study of 87.9 per cent. With over 125,000 students undertaking our courses each year, there are literally tens of thousands of stories just like these. There is no doubt that TAFE Queensland changes lives as we work hard to deliver for Queensland.
Annual Report 2014-15 | 25 Brisbane Gold Coast
Locations: Atherton, Bamaga, Bowen, Burdekin, Cairns, Cannonvale, Charters Towers, Cloncurry, Great Barrier Reef International Marine College, Ingham, Innisfail, Mareeba, Mount Isa, Normanton, Palm Island, Thursday Island, Pimlico and the Townsville Trade Training Centre.
more than 98 per cent of students have been offered North employment by Myuma’s industry partners. The majority “Not-for-profit Indigenous training organisation Brisbane Gold Coast of the graduates continue to further their training with Myuma Pty Limited works in collaboration with TAFE apprenticeships or traineeships, often within a TAFE Queensland North to deliver training to Indigenous learning environment.” people across Queensland. In remote areas, trainers live in replicated mining camps with the Indigenous Matt Steblina students to deliver training in construction and mining Training Manager, The Myuma Group qualifications. The program has a completion rate of 100 per cent and
Locations: Bundaberg, Gympie, Fraser Coast, Maroochydore, Maryborough, Mooloolaba and Nambour. Thursday Island
Bamaga East Coast Herb and spice producer, Gourmet Gardens, has saved more than $850,000 over four years, thanks to training delivered by TAFE Queensland East Coast in collaboration with Incremental Improvements Australia (IIA). “We have improved manufacturing processes, introduced operational changes, and turned waste into an income-generating product. We introduced changes to time management and machinery positioning, which have increased output by 1.8 million tubes of product per year and allowed three months of double shifts to be cut. Cairns Great Barrier Reef Gourmet Gardens is thriving beyond expectations, and I Mareeba International Marine College attribute much of this success to the training from TAFE Atherton Normanton Innisfail Queensland East Coast and IIA.” Palm Island Andrew Eve-Brown Ingham Brisbane Gold CoasChieft Operating Officer, Gourmet Gardens Pimlico Cloncurry Townsville Trade Training Centre Caboolture Mount Isa Charters Towers Locations: Bundamba, Toowoomba, Chinchilla, Bowen Cannonvale Redcli e Dalby, Inala, Kingaroy, Nurunderi, Roma, Charlieville, Burdekin Springfield and Warwick. Bracken Ridge Grovely Eagle Farm Bowen Hills Wellington Point South Bank South West Yeerongpilly Mount Gravatt “TAFE Queensland South West has been Origin Energy’s Acacia Ridge training partner of choice for many years. Browns Plains Loganlea Recently, TAFE Queensland South West undertook a Alexandra Hills major training needs analysis spanning Origin Energy’s operational fields. The project involved a desktop review and workplace shadowing of staff to observe and record Bundaberg their required skills and knowledge, which was used to Hervey Bay Maryborough develop a comprehensive report for each work area. Gympie Nurunderi Maroochydore We’re now working with TAFE Queensland South West to Nambour deliver workforce training to close skill gaps and develop Charlieville Roma Kingaroy Chinchilla Mooloolaba multiskilling to provide us with workforce flexibility. Dalby Toowoomba Brisbane We have a long-standing relationship with TAFE Queensland Bundamba Coomera South West, and their participation in a range of training Spring eld / Inala Southport Ashmore and consultancy arrangements had enabled us to meet Warwick Coolangatta substantial training requirements across several states.” Michael Anderson Origin Energy 26 Brisbane Gold Coast
Locations: Acacia Ridge; Alexandra Hills; Bracken Ridge and Eagle Farm.
This innovative training arrangement ensures our Skills Tech apprentices receive hands-on training with equipment “The world-class training facilities at Acacia Ridge were they are going to be using on-the-job. The partnership one of the reasons Komatsu Australia chose TAFE is a two-way process, and we donate equipment and Queensland SkillsTech as the only training organisation resources for training our apprentices and technical to train all of our Queensland apprentices. people, as well as other TAFE Queensland apprentices. These machines in the workshops allow our apprentices TAFE Queensland SkillsTech is our only choice for to learn about 80 per cent of the systems and quality training and job-ready workers.” components they are likely to come across in mining or construction equipment, which in turn makes for a safer, Paul Richardson more productive workforce. National Organisational Development Manager, Komatsu
Thursday Island
Bamaga
Locations: South Bank; Alexandra Hills; Bracken Ridge; Bowen Hills, Browns Plains, Caboolture; Grovely, Loganlea, Mount Gravatt, Redcliffe, Wellington Point and Yeerongpilly.
Brisbane Gold Coast
Since 2011, more than 75 of our employees have Brisbane received quality-certified qualifications, contributing to “We engaged TAFE Queensland Brisbane to design improved employee satisfaction and productivity.” a flexible approach to qualification based learning. It is imperative to our business that learning and Jo Maddock development is customised for our very diverse Learning & Development Manager, Allianz Global Assistance employee base to ensure maximum impact. Co- delivered by AGA and TAFE instructors, the training incorporates AGA policies and draws on situations Cairns Great Barrier Reef faced in the workplace. Mareeba International Marine College Atherton Normanton Innisfail Palm Island Ingham Locations: Ashmore, Coolangatta, Coomera and Southport
Brisbane Gold Coast Pimlico Cloncurry Townsville Trade Training Centre Caboolture Mount Isa Charters Towers Bowen Gold Coast Cannonvale Redcli e Burdekin “TAFE Queensland Gold Coast and Ramsay Health Bracken Ridge created Australia’s first contextualised and flexible online Grovely Eagle Farm Diploma of Nursing with workplace integration at its Bowen Hills Wellington Point South Bank centre. The Enrolled Nursing programs have become an Yeerongpilly integral strategic plank to meet our nursing workforce Mount Gravatt Acacia Ridge planning objectives. Browns Plains We find the calibre of teaching staff and students to be Loganlea Alexandra Hills of the highest standard – and coupled with excellent clinical learning environments we are training and employing a high standard of competent novice nurses. Bundaberg Hervey Bay More than 250 graduates have completed the program, Maryborough Gympie with 99 per cent of those offered employment and a 98 Nurunderi per cent retention rate two years post-graduation.” Maroochydore Nambour Charlieville Roma Kingaroy Margaret Kenny, Chinchilla Mooloolaba Ramsay Health Dalby Toowoomba Brisbane Bundamba Coomera Spring eld / Inala Southport Ashmore Warwick Coolangatta
Annual Report 2014-15 | 27 Board
TAFE Queensland Board (left to right): Ms Vivienne Mallinson, Mr Peter Dowling, Mr Darrell Butcher, Mr Warren Tapp (Chair), Ms Anita Brown and Mr Peter Price (not pictured: Ms Elizabeth (Beth) Honeycombe).
28 Executive Management
Jodi Schmidt Chief Executive Officer
Aaron Devine Christina Hong General Manager Chief Academic Officer TAFE Queensland Brisbane
Paul Wilson Cliff Kaye General Manager Chief Financial Officer TAFE Queensland East Coast
Jenny Dodd Tom Barlow General Manager Chief Human Resources Officer TAFE Queensland Gold Coast
Jo Pyne Dean Sedgman General Manager Chief Information Officer TAFE Queensland North
Mary Campbell Michael Thomas General Manager Chief Operating Officer TAFE Queensland SkillsTech
Trevor Schwenke General Manager TAFE Queensland South West
Annual Report 2014-15 | 29 Board
TAFE Queensland has an experienced Board that is actively involved in setting the strategic direction of the organisation. The Board is kept well informed, ensuring it is able to make the best decisions for TAFE Queensland.
During 2014-15, the Board comprised of the Chair • Awarded the first ever Chairman’s Award and six members who bring a diverse range of for Innovation at the 2015 TAFE Queensland experience, skills and commercial expertise to the Staff Awards. organisation. The Board has been actively engaged • Lodged the following submissions to with industry and key stakeholders, including Government: staff, students and the community with a view to understanding the needs of its stakeholders and • Senate Standing Committees on ensuring that TAFE Queensland staff are aware Education and Employment, Inquiry of the strategic direction that has been set by the into Technical and Further Education in Board. In 2014-15 the Board held 13 meetings. Australia (2014) The functions of the Board are established under • House of Representatives Standing section 13 of the TAFE Queensland Act 2013. In Committee on Education and 2014-15, the Board made a number of significant Employment’s Inquiry into the role of achievements including: Technical and Further Education system and its operation (2014) • Appointment of TAFE Queensland’s first Chief Executive Officer. • Senate Education and Employment Committee Inquiry into the Higher • Development of the TAFE Queensland Strategic Education and Research Reform Plan 2014-18. Amendment Bill (2014) • Involvement in the appointment of the • Legal Affairs and Community Safety TAFE Queensland Executive Team through Committee Queensland Training Assets participation on recruitment and selection Management Authority Repeal Bill (2015) processes. • Established good governance practices • Submitted the first TAFE Queensland including: the implementation of the Board’s Operational Plan 2014-15 to the Minister. Delegation of Authority and Reserved Powers, • Launched the TAFE Queensland “make great appointment of an Academic Advisor to provide happen” brand. advice on TAFE Queensland’s higher education offerings, development of an internal audit • Held industry engagement functions to program of work, and oversaw the development better understand the training requirements of the Work Health and Safety Strategy to for employers, industry and communities in improve safety culture. Toowoomba, Gold Coast, Cairns, Alexandra Hills, Nambour and Eagle Farm.
30 Board Members
Mr Warren Tapp Chairperson Mr Warren Tapp is a member of the Queensland He is a Company Director and the Chairperson University of Technology (QUT) Council and was of the TAFE Queensland Board. He is also the most recently the Chairperson of the former Chairperson of TAFE Chairs Australia. He was Southbank Institute of Technology Board and the founder and Managing Director of his own a member of the TAFE Reform Board. He has board consulting company and a lecturer for been a Non-Executive Chairman of eight Boards the Australian Institute of Company Directors across a range of industries. on all corporate governance subjects locally and nationally.
Mr Peter Price Deputy Chair Mr Peter Price has been an Executive General He has a strong background in Queensland’s Manager within Energex since March 2006 skills and training sector as Chairperson of overseeing Programming, Procurement and Energy Skills Queensland, a member of the Services and later Network Performance. He TAFE Reform Board and (former) Chairperson assumed the Executive General Manager, Asset of SkillsTech Australia. He is currently a member Management role in July 2012. of the Energy Network Association Asset Management Committee.
Mr Peter Dowling Chair Audit Finance and Risk Management Committee Mr Peter Dowling is an Accountant (FCPA Australia, Metro South Hospital and Health and FCA) and Company Director. He is a Services Board, WorkCover Queensland and former Ernst and Young Tax and Business Lexon Insurance. He also holds Audit and Risk Advisory Partner. He is a Member of the Order Committee roles as Chair or Member on a of Australia (AM) in the General Division for number of local and state government councils services to accountancy and the community. and departments. He is also the Honorary Queensland Consul for Botswana. He has served on Government and private sector boards over a 15 year period. His current Board positions include with CPA
Ms Anita Brown Chair Remuneration and Nominations Committee Ms Anita Brown has held a number of Company has been a Solicitor of the Supreme Court of Director and Secretary positions for private Queensland and the High Court of Australia companies and subsidiary companies of and a Solicitor/Barrister in the Australian Capital Transfield Services Ltd, in Australia and North Territory and has worked for a number of and South America. She holds certificates in top tier law firms. She has also worked as an Risk Management and Governance Practice and Accountant, Commercial Director and owned Administration. her own business. She is the former General Counsel and Anita currently provides management, board, Company Secretary for Transfield Services corporate governance, risk management and Americas and Executive General Manager company secretarial consulting services to (Legal and Risk) and Company Secretary for a broad range of industries in Australia and Easternwell Group Pty Ltd. Since 1998 she internationally.
Annual Report 2014-15 | 31 Mr Darrell Butcher Member Mr Darrell Butcher is a highly experienced Darrell served as an Alderman with the Redcliffe business person with over 40 years’ experience City Council for 6 years and was Chair of the in business planning and development, Brisbane North Institute of TAFE Council for personnel management, strategic oversight 18 years. Darrell is a recipient of the Federal and marketing. Originally a motor mechanic by Government’s Centenary Medal for his services trade, during his career Darrell turned his small to technical and further education and to the automotive business in Redcliffe into one of the automotive industry and is a regular speaker largest Ford dealer operations in Australia and at various charitable, sporting and business one of Queensland’s largest Toyota dealers, the events. Darrell sold his business group and Group employed over 500 permanent full-time retired in 2001. staff with an annual turnover exceeding 500 million dollars.
Ms Elizabeth (Beth) Honeycombe Member Ms Elizabeth Honeycombe is a former and Fair Trading and the Queensland Women’s Burdekin Shire Mayor and Councillor and a Health Advisory Committee. qualified teacher. She was a former Chair of She is extensively engaged in local community the Queensland Local Government and Arts cultural and arts activities through her roles on Funding Committee and former member of a range of boards and committees in areas the Queensland Local Government Grants including business, education, health, training, Commission, the Auctioneer and Agents electricity and performing arts. Committee, Queensland Department of Equity
Ms Vivienne Mallinson Member Ms Vivienne Mallinson was a Company Director She is a consultant for the National Association and Secretary of the BUSY Inc. Board and an of Australian Apprenticeships Centres (NAAAC) Executive Director (consultant) for BUSY Inc. and is on the Advisory Board of the Australian trading as BUSY At Work. She has over 30 Apprenticeships Training Information Service. years’ experience in the education, training Until her retirement she was the CEO of BUSY and employment industry having undertaken Inc. t/a BUSY at Work. studies in a Bachelor of Business (Human Resource Management) and holding a teaching qualification.
32 Audit, Finance and • programs, plans, and objectives are achieved; Risk Management Committee • quality and continuous improvement are This committee advises the Board on the quality fostered in TAFE Queensland’s governance and of external operating controls, reviews financial internal control processes; and risks, internal and external audit functions, financial • significant legislative or regulatory issues statements and risk management. impacting TAFE Queensland are recognised In 2014-15, the committee focussed on establishing and addressed properly. risk management and internal audit frameworks; The specific scope of work is set by the annual the engagement of internal auditors, PwC to audit plan which for 2014-15 included: assist in the development of a 3 year program of audit work in conjunction with external audit • review of the risk management framework; services provided by the Queensland Audit Office • design of the financial compliance program; (QAO). The Committee also provided guidance • review of budgeting and forecasting; and significant input into the development of Work Health and Safety Strategy with the goal of • review of performance management reporting; improving and implementing a consistent safety • review of fraud management; and culture throughout the organisation. • ICT governance program (project assurance). TAFE Queensland’s risk management framework includes policy and procedures that are based on TAFE Queensland’s risk management and internal the approach that TAFE Queensland will be risk audit activities are cognisant of key legislative aware, responsive, agile and resilient and allow for requirements, such as the TAFE Queensland Act the review and addressing of risks that have the 2013 and the Financial Accountability Act 2009. potential to effect the strategic and operational The activities were also undertaken with due regard objectives of our organisation. to the Queensland Treasury Audit Committee Guidelines 2012. TAFE Queensland conducts risk management activities in accordance with the internal standard The members of the Audit, Finance and Risk for risk management. This approach is focused on Management Committee for 2014-15 were Mr Peter four key risk attributes: risk leadership, knowledge Dowling (Chair), Mr Peter Price and Mr Darrell Butcher. management, governance and assurance, along Remuneration and Nominations with resources, tools and processes. Committee The Board has established risk appetites that The role of this committee is to provide advice on guide the decision making frameworks across appointments, retirements and removal of Board the organisation and quarterly reviews of known members and to establish a process for the regular and emerging risks are undertaken by the TAFE evaluation of the Board, Directors and senior staff. Queensland Executive, this committee and the The committee also advises on the appointment Board, including the establishment and monitoring and remuneration of the CEO. of mitigation strategies. During the year, this committee played a significant The internal audit function is managed through role in appointing the CEO and provided oversight of this committee and is used to determine whether the appointment of the TAFE Queensland Executive TAFE Queensland’s risk management controls Team which included undertaking a market review and governance processes, as designed and of executive position salaries. In addition to this, the represented by management, is adequate and committee undertook the first TAFE Queensland functioning in a manner to ensure: Board evaluation, provided guidance and input • risks are appropriately identified and managed; into the Executive Performance Incentive Scheme including development of the CEO KPIs, Performance • interaction with the various groups involved with Management Framework, and Succession Planning governance occurs as needed; Framework. The committee also reviewed the Board • significant financial, managerial, and operating induction process and maintained a heavy focus on information is accurate, reliable, and timely; improving governance processes. • employees’ actions are in compliance with The members of this committee were Ms Anita policies, standards, procedures, and applicable Brown (Chair), Ms Elizabeth Honeycombe and laws and regulations; Ms Vivienne Mallinson. • resources are acquired economically, used efficiently, and adequately protected;
Annual Report 2014-15 | 33 Other Reporting Requirements
Workforce Planning and Performance Employee Relations Framework To ensure we remain the market leader in high The TAFE Queensland workforce currently operates quality education and training, TAFE Queensland under a number of industrial instruments: has developed a workforce strategy that focuses • the TAFE Teachers Award – State 2012 and on seven key areas – the Senior Colleges Awards – State 2012 as • Flexible employment; well as the Department of Education, Training and Employment TAFE Educational Employees • Improved teacher quality; Certified Agreement 2012 – for teaching staff. • Strong leadership; • the Public Service Award – State 2012, the • Performance driven; Employees of Queensland Government Departments (Other than Public Servants) • Agile workforce; Award – State 2012, the Building Trades Public • Capable workforce and Sector Award – State 2012 and the Engineering • Strong attraction and retention strategies. Award – State 2012 as well as the State Government Departments Certified Agreement We have developed a number of programs across 2009 – for non-teaching staff. our workforce in line with these seven priorities. • Individual Employment Agreements – for In developing a flexible environment for our executive staff. workforce TAFE Queensland has not only implemented a casual staff engagement model but we have also integrated new and emerging education roles and put in place strategies to manage the diversity in ages of our workforce. In an effort to help our teachers and other staff to grow in their roles we have implemented the educator capability framework for our teachers and embedded the leadership capability framework to develop leadership skills across the workforce. To reward outstanding performance TAFE Queensland has broadened the reward programs beyond formal staff awards and created a strategic ‘business opportunities’ function. Improved communications across our networks has helped to create a more agile workforce while several programs have also been put in place to develop a more capable workforce, including baseline educator capability data. And while attracting good staff is important, retaining those you have is equally vital. To do this TAFE Queensland has identified our employee brand and value proposition as well as refining our induction and orientation processes for new staff.
Total FTE Permanent % separation % 61 22 rate 4015 39%
34 Performance Measures
2014-15 2014-15 TAFE Queensland Target / estimate Actual Performance Measure
Proportion of all attempted competencies successfully completed 90 per cent 89.3 per cent
Student post training outcome (employed or in further study after training) 89 per cent 87.1 per cent
Proportion of graduates satisfied with the overall quality of their training 89 per cent 87.9 per cent
Proportion of employers satisfied with the overall quality of training 85 per cent 89.7 per cent
Average cost per competency successfully completed ($) $781 $746
89.3% 87.9 %
Successful Competency Percentage Student Satisfaction
The proportion of all attempted competencies The proportion of graduates satisfied with the successfully completed was 89.3 per cent which overall quality of their training was 87.9 per is a positive result given that nearly 9 out of 10 cent, a positive result given the scale of internal competencies per student were successfully restructuring activity across TAFE Queensland achieved. regions. %
87.1% 89.7%
Graduates Employed or in Further Study Employer Satisfaction
% The percentage of students achieving a post training The proportion of employers satisfied with the outcome (employed or in further study after training) overall quality of training was 89.7 per cent, was 87.1 per cent which is a strong result given the significantly better than the target of 85 per cent. current economic conditions.
$746 Average Cost per Competency
The average cost per competency was $746 resulting from a strong commitment to expense management.
Annual Report 2014-15 | 35 Public Sector Ethics Information Systems and Record Keeping TAFE Queensland is both defined as a Queensland public service agency and, consequently, bound by TAFE Queensland applies whole-of-government the Public Sector Ethics Act 1994 to comply with information policies and standards to its records, the Code of Conduct for the Queensland Public and continues to progressively implement Service. the requirements of Information Standard 40: Recordkeeping in order to provide and promote: All TAFE Queensland employees are given access to appropriate education and training about public • reliable access to information assets; sector ethics as part of the TAFE Queensland • informed decision-making; Orientation program (which contains a mandatory unit on the Code of Conduct.) This unit is available • cost-effective use of information resources; on-line to all employees at all times and can be • business continuity; used at regular intervals during their employment as required. • compliance with legislation; and Working with TAFE: Conduct, Ethics and • compliance with organisational policies and Performance Policy is the basis of the TAFE procedures. Queensland framework of administrative human During 2014-15 TAFE Queensland commenced the resource procedures and management practices. implementation of a corporate electronic document These have proper regard to the ethics principles management system (eDRMS). Approximately and values of TAFE Queensland. There is a strong 90,000 files were transferred from the Department alignment with the Code of Conduct for the of Education and Training’s eDRMS to the TAFE Queensland Public Service. Queensland eDRMS. In addition, the planning processes of TAFE A key part of the implementation of the new Queensland are congruent with the public sector eDRMS solution has been for TAFE Queensland ethics principles and incorporate integrity and to educate users about their record management accountability into our strategies, objectives and roles and responsibilities through a structured actions. Integral to the framework of our employee record keeping awareness program. These staff performance agreements is the requirement that will in turn provide training to staff in the making our behaviours incorporate the ethical priorities of and keeping of public records. A new corporate the Public Sector Ethics Act 1994. Records Manager role has also been created and filled to direct and establish a consistent approach to records management across the organisation and to build an active records management capacity in both corporate areas and regions and manage the transition from paper to digital records in TAFE Queensland regions. TAFE Queensland currently administers the retention and disposal of records under QDAN 588 and this schedule is under review to ensure alignment with the transitioned TAFE Queensland structure.
36 Financial Statements 2014-15
37 Contents
Statement of Comprehensive Income 39
Statement of Financial Position 40
Statement of Changes in Equity 41
Statement of Cash Flows 42
Notes To and Forming part of the Finacial Statements 2014-15 43
Management Certificate 64
Independent Auditor’s Report 65
Glossary 67
38 Notes to and forming part of the financial statements For the year ended 30 June 2015 Statement of Comprehensive Income for the year ended 30 June 2015
2015 Notes $’000 Income User charges 4 392,112 Grants and contributions 5 289,797 Other income 13,314 Total income 695,224
Expenses Employee expenses 6 394,064 Supplies and services 7 214,966 Grants and subsidies 1,453 Depreciation and amortisation 8,029 Other expenses 2,893
Total expenses 621,404
Operating profit 73,820
Total comprehensive income for the year 73,820
The accompanying notes form part of these statements.
Annual Report 2014-15 | 39 Statement of Financial Position for the year ended 30 June 2015
2015 Notes $’000 Current assets Cash and cash equivalents 8 222,256 Receivables 9 67,343 Inventories 571 Other 8,805 Total current assets 298,976
Non-current assets Property, plant and equipment 10 6,332 Intangible assets 11 16,739 Total non-current assets 23,071
Total assets 322,046
Current liabilities Payables 12 39,852 Employee benefits 13 14,390 Other current liabilities 14 42,722 Total current liabilities 96,964
Non-current liabilities Total non-current liabilities -
Total liabilities 96,964
Net assets 225,082
Equity Contributed equity 151,263 Retained earnings 73,820 Total equity 225,082
The accompanying notes form part of these statements.
40 Notes to and forming part of the financial statements For the year ended 30 June 2015 Statement of Changes in Equity for the year ended 30 June 2015
Retained Contributed TOTAL Earnings Equity $'000 $'000 $'000 Balance at 1 July 2014 - - - Machinery of government - 151,263 151,263 Operating profit 73,820 - 73,820 Balance at 30 June 2015 73,820 151,263 225,082
The accompanying notes form part of these statements.
Annual Report 2014-15 | 41 Statement of Cash Flows for the year ended 30 June 2015
2015 Notes $’000 Cash flows from operating activities User charges 384,452 Grants and other contributions 290,067 GST input tax credits from ATO 19,197 Interest received 4,745 Other receipts 8,597 Employee expenses (386,990) Supplies and services (247,240) GST remitted to ATO (8,776) Other payments (2,099)
Net cash provided by operating activities 8 61,954
Cash flows from investing activities Sales of property, plant and equipment 20 Payments for property, plant and equipment (2,087) Payments for intangibles (13,096) Investment redeemed 25,871
Net cash provided by investing activities 10,707
Net increase in cash and cash equivalents 72,661 Cash transfers from machinery of government 149,594
Cash and cash equivalents at end of financial year 8 222,256
The accompanying notes form part of these statements.
42 Notes to and forming part of the financial statements For the year ended 30 June 2015
1 Corporate Entity TAFE Queensland was established the transfer of assets to the value of and North, and SkillsTech, a trade as a statutory body under the TAFE $265.8 million and liabilities to the value training registered training organisation in Queensland Act 2013 on 1 July 2013. of $114.5 million. metropolitan Brisbane. It offers a range From 1 July 2014, all TAFE institutes, TAFE Queensland is a not for profit of high level vocational qualifications, excluding land and property, and entity governed by an independent associate degrees, university pathways corporate functions were transferred board. TAFE Queensland operates and articulation arrangements in key from the former Department of state-wide training centres managed industries. Education, Training and Employment to through five regions including Brisbane, TAFE Queensland. This included Gold Coast, East Coast, South West
2 Basis of Preparation
(a) Statement of compliance (b) Measurement of fair values If the inputs used to measure the fair These financial statements are general TAFE Queensland’s accounting value of an asset could be categorised purpose financial statements which have policies and disclosures require the in different levels of the fair value been prepared in accordance with: measurement of fair values for non- hierarchy, the fair value measurement is categorised in its entirety in the same • applicable Australian Accounting financial assets relating to property, plant and equipment and financial instruments. level of the fair value hierarchy as the Standards (AASBs) and lowest level input that is significant to the Interpretations Fair value is defined as the price that would be received to sell an asset or entire measurement. • Financial Accountability Act 2009 paid to transfer a liability in an orderly Further information about the • Financial and Performance transaction between market participants assumptions made in measuring fair Management Standard 2009 at the measurement date. value is included in Note 3(f) Property, Plant and Equipment and Note 18 • Queensland Treasury’s Minimum All assets and liabilities for which fair Financial Instruments. Reporting Requirements for value is measured or disclosed in the Queensland Government Agencies financial statements are categorised (c) Functional and presentation for the year ended 30 June 2015 within the following fair value hierarchy currency based on the inputs used in the valuation • Statutory Bodies Financial techniques as follows: The financial statements are presented Arrangement Act 1982 in Australian dollars. Amounts included • Level 1: quoted prices in active • other authoritative pronouncements. in the financial statements have been markets for identical assets or rounded to the nearest thousand dollars, The financial statements are authorised liabilities. unless disclosure of the full amount is for issue by the Chairperson, TAFE • Level 2: inputs other than quoted specifically required. Queensland Board, the Chief Executive prices included in Level 1 that are Officer, and Chief Financial Officer at observable for the asset or liability, (d) Going concern the date of signing the Management either directly or indirectly. The financial statements have been Certificate. • Level 3: inputs for the asset or liability prepared on a going concern basis. that are not based on observable market data (unobservable inputs).
Annual Report 2014-15 | 43 2 Basis of Preparation (continued) (e) Use of estimates and considered relevant. Actual results may In particular, information about significant judgements differ from these estimates. Estimates areas of estimation, uncertainty and underlying assumptions are and critical judgements in applying The preparation of financial statements reviewed on an ongoing basis. Revisions accounting policies that have the requires management to make to accounting estimates are recognised most significant effect on the amount estimates, judgements, and assumptions in the period in which the estimate recognised in the financial statements that affect the application of accounting is revised and in any future periods are described in the following notes: policies and the reported amounts of affected. assets, liabilities, income, and expenses. • Note 3 (d) Receivables The estimates and associated • Note 3 (l) Other liabilities assumptions are based on historical experience and other factors that are
3. Significant Accounting Policies The accounting policies set out below (b) Revenue (c) Cash and cash equivalents have been applied consistently to all Revenue is measured at the fair value of Cash and cash equivalents comprise periods presented in these financial the consideration received or receivable cash on hand, cheques receipted but statements. net of the amount of goods and services not yet banked, and other short term (a) Joint arrangements tax (GST). Revenue is recognised when highly liquid investments. the amount can be reliably measured Joint arrangements exist when two or and it is probable that future economic (d) Receivables more parties have joint control. Joint benefits will flow to TAFE Queensland. Receivables are recognised at amounts control is the contractually agreed (i) User charges due at the time of sale or service delivery. sharing of control of an arrangement, Trade receivables are generally due for which exists only when decisions User charges are recognised as settlement 30 days from invoice date. about the relevant activities require revenues when the revenue has been Other receivables are due in accordance the unanimous consent of the parties earned and can be measured reliably with their contractual terms. sharing control. with a sufficient degree of certainty. This involves either invoicing for related goods Collectability of trade receivables is TAFE Queensland operates the Australia or services and/or the recognition of reviewed on an ongoing basis with Pacific Technical College (APTC) under accrued revenue. provision being made for impairment a consortium arrangement with Box Hill as a proportion of the age of the Institute and GRM International Pty Ltd, (ii) Grants and contributions debt. Individual debts that are providing education and training services Grants, contributions, donations and uncollectable are written off when in the Pacific Islands. This arrangement gifts received that are non-reciprocal identified. Movements in the provision is accounted for as a joint operation in nature are recognised as revenue for impairment, are recognised as an under AASB 11 Joint Arrangements. The on receipt or when it is probable that expense in that period. All known bad financial statements of TAFE Queensland the economic benefits will flow to TAFE debts were written-off at 30 June 2015. include its share of the revenues and Queensland and the value of that benefit expenses arising from the operation can be reliably measured. Grants (e) Inventories in accordance with the terms of the received that are reciprocal in nature agreement. Since the joint arrangement are recognised over the term of the Inventories are measured at the lower is not material to TAFE Queensland, arrangements. of cost and net realisable value. Cost is assigned on a weighted average basis separate disclosure for the summarised (iii) Interest revenue financial information for APTC is not and includes expenditure incurred in Interest is recognised as it is earned. required. acquiring the inventories and bringing (iv) Other income them to their existing condition. Revenue from the sale of goods or Inventory is reviewed on a regular basis services is recognised as revenue on the to recognise obsolescence, slow moving delivery of the goods or services to the inventories and damaged goods. Any customer. write down of inventories is recognised as an expense.
44 Notes to and forming part of the financial statements For the year ended 30 June 2015
(f) Property, plant and (iii) Depreciation (g) Intangible assets equipment Assets are depreciated from the date Intangible assets with a cost greater than Each class of property, plant and of acquisition or, in respect of internally $100,000 are capitalised. Subsequent equipment is carried at fair value or cost constructed assets, from the time an expenditure is capitalised when it less, where applicable, any accumulated asset is completed and commissioned increases the future economic benefits depreciation and impairment losses. ready for use. embodied in the specific asset to which Items of property, plant and equipment Property, plant and equipment is it relates. with a total value in excess of the depreciated on a straight-line basis over Intangible assets are recognised and following thresholds are recognised in the estimated useful life of each item of carried at cost less accumulated the year of acquisition: property, plant and equipment. amortisation and accumulated Asset type Threshold Where assets have separately identifiable impairment losses. components that are subject to regular Buildings $10,000 (i) Intellectual property replacement, these components are Costs associated with the development Plant and equipment $5,000 assigned useful lives distinct from of intellectual property have been the asset to which they relate and capitalised and are amortised on a are depreciated accordingly. Any (i) Acquisition of property, plant and straight-line basis over its estimated expenditure that increases the originally equipment useful life. assessed capacity or service potential Acquisitions of property, plant and of an asset is capitalised and the new The cost of intellectual property includes equipment are initially recorded at cost. depreciable amount is depreciated over the cost of all materials, direct labour, Cost is determined as the fair value of the remaining useful life of the asset. other directly attributable costs, and an consideration given to acquire the asset appropriate proportion of overheads Depreciation methods, estimate useful plus costs incidental to the acquisition, attributable during development. including engineering design fees and all lives and residual values of property, (ii) Computer software other establishment costs. plant and equipment are reviewed annually and adjusted if appropriate. The Costs associated with the development Costs incurred subsequent to the initial estimated useful lives for each class of and implementation of new systems and asset purchase are capitalised when the depreciable assets are: computer software have been capitalised expenditure improves the condition of and are amortised on a straight-line basis the asset beyond its originally assessed over its estimated useful life. standard of performance or capacity. Class of fixed Useful life The cost of internally generated (ii) Asset valuation asset (years) computer software includes the cost of Each class of property, plant and Buildings 25 - 80 all materials, direct labour, other directly equipment is carried at fair value or Plant and equipment 3 - 20 attributable costs, and an appropriate cost, less any accumulated depreciation proportion of overheads attributable and impairment losses. Fair value is during the development of the software. measured in accordance with AASB (iii) Amortisation 116 Property, Plant and Equipment and (vi) Gains and losses on disposals Queensland Treasury’s Non-Current Gains and losses on disposals are Amortisation is recognised on a straight- Asset Policies for the Queensland Public determined by complying proceeds line basis over the estimated useful lives Sector. with the carrying amount of the asset at of intangible assets from the date that they were available for use. The useful Buildings are measured at fair value the time of disposal. These gains and losses are include in the Statement of lives of intangible assets are reviewed using a depreciated replacement cost annually and adjusted if appropriate. approach. Valuations are undertaken Comprehensive Income. annually to ensure that the carrying value The estimated useful lives of intangible of the assets does not differ materially assets are: from that which would be determined Class of intangible Useful life using fair value at the end of the asset (years) reporting period. Due to the specialised Intellectual Property 3 nature of this class of asset where there is generally no active market, the fair Software Purchased 5 - 10 value is determined using information Software Internally 7 - 10 from a variety of sources. The key Generated assumptions for fair value assessment Other Intangibles 10 are disclosed in Note 10.
Annual Report 2014-15 | 45 3. Significant Accounting Policies (continued) (h) Impairment from the financial assets expire or if the and on-costs) and long service leave. The carrying amounts of TAFE financial asset is transferred to another These levies are expensed in the period Queensland’s non-current assets are party without retaining control or in which they are payable. Amounts paid reviewed annually to determine whether substantially all risks and rewards of the to employees for annual leave and long there is any indication of impairment. asset are transferred. Financial liabilities service leave are claimed back from the An impairment loss is recognised if the are derecognised if the obligations schemes quarterly in arrears. carrying amount of an asset or its cash- specified in the contract expire or are TAFE Queensland does not recognise a generating unit exceeds its estimated discharged or cancelled. provision for annual leave or long service recoverable amount. The recoverable Financial instruments are classified and leave in the financial statements as these amount of an asset is the higher of its net measured as follows: liabilities are held, and reported, on a selling price (fair value less costs to sell) • cash and cash equivalents – held at whole-of-government basis. and the depreciated replacement cost. fair value (iii) Superannuation schemes Impairment losses are recognised as • receivables – held at amortised cost TAFE Queensland contributes to the an expense unless the asset is carried • payables and accrued employee State Government Superannuation at a revalued amount. When the asset benefits – held at amortised cost Contribution Scheme (QSuper) for is measured at a revalued amount, the employees under both the defined All other disclosures relating to the impairment loss is offset against the benefit scheme and the accumulation measurement and financial risk asset revaluation reserve of the relevant superannuation scheme. Contributions management of financial instruments asset to the extent available. are expensed in the period in which they held by TAFE Queensland are included An impairment loss is reversed when are paid or payable. TAFE Queensland’s in Note 18. there is an indication the impairment obligation is limited to its contribution to loss may no longer exist and there has (k) Employee benefits QSuper. been a change in the estimate used to (iv) Termination benefits determine the recoverable amount. An A liability is recognised for benefits Termination benefits are payable when impairment loss is reversed only to the accruing to employees for salaries and employment is terminated by TAFE extent that the asset’s carrying amount wages, annual leave, and long service Queensland before the normal retirement does not exceed the carrying amount leave when it is probable that settlement date, or whenever an employee accepts that would have been determined, net will be required and they are capable of voluntary redundancy in exchange for of depreciation or amortisation, if no being measured reliably. these benefits. Termination benefits are impairment loss had been recognised. Current liabilities recognised for recognised at the earlier of when TAFE employee benefits expected to be settled Queensland can no longer withdraw the (i) Payables within 12 months are measured at their offer of those benefits and when TAFE nominal value using current salary and Trade and other payables represent the Queensland recognises costs for a wage rates and related on-costs. value of goods and services provided restructure. In the case of an offer made to TAFE Queensland prior to the (i) Salaries, wages and sick leave to encourage voluntary redundancy, the end of the financial year that remain Salaries and wages due but unpaid termination benefits are measured based unpaid. Trade and other payables are at reporting date are recognised as a on the number of employees expected to recognised upon receipt of the goods liability at current salary and wage rates. accept the offer. or services ordered and are measured Prior history indicates that on average, (v) Key management personnel and at the agreed purchase price less any sick leave taken each reporting period remuneration applicable discounts. Amounts owing is less than the entitlement accrued. As are unsecured and are generally settled Key management personnel and sick leave is non-vesting, a liability for on 30 day terms. remuneration disclosures are made unused sick leave entitlements is not in accordance with section 5 of the (j) Financial instruments recognised. An expense is recognised Financial Reporting Requirements for for this leave when taken. Queensland Government Agencies Financial instruments are recognised (ii) Annual leave and long service issued by Queensland Treasury. Refer to initially at fair value when the related leave Note 20. contractual rights or obligations exist. Subsequent to initial recognition these TAFE Queensland is a member of the financial instruments are measured as Queensland Government’s Annual Leave described below. Central and Long Service Leave Central Schemes. A levy is payable to these Financial assets are derecognised if schemes to cover the cost of employees’ the contractual rights to the cash flows annual leave (including leave loading
46 Notes to and forming part of the financial statements For the year ended 30 June 2015
(l) Other current liabilities Cash flows are included in the Statement Of these new or revised standards, the of Cash Flow on a net GST basis. The most significant potential impacts would (i) Unearned revenue GST components of cash flows arising arise from AASB 11 Joint Arrangements. For some of its customers, TAFE from investing and financing activities TAFE Queensland’s application of this Queensland received payment in which are recoverable from, or payable standard is addressed in note 3(a). advance of delivering the goods and/or to, the ATO are classified as operating TAFE Queensland is not permitted services invoiced. Where payments are cash flows. to early adopt a new or amended received in reporting periods prior to the accounting standard ahead of the provision of services, revenue is deferred specified commencement date to match the reporting periods in which (o) Comparatives unless approval is obtained from the the services are provided. As this is TAFE Queensland’s first year Queensland Treasury. Consequently, (ii) Payments in advance of operation, no comparative information TAFE Queensland has not applied TAFE Queensland receives advance has been provided for the current any Australian Accounting Standards payments which require reconciliation reporting period other than for Board and Interpretations that have been against customer accounts. Members’ Fees. issued but are not yet effective. TAFE Unreconciled advance payments are Queensland applies these standards and recorded as other current liabilities. (p) New and revised accounting interpretations in accordance with their standards respective commencement dates. (m) Leases TAFE Queensland did not voluntarily At the date of authorisation of the Leases in which TAFE Queensland change any of its accounting policies financial report, the expected impacts of assumes all of the risks and rewards during 2014-15. The only Australian new or amended Australian Accounting of ownership are classified as finance Accounting Standard changes Standards with future commencement leases. TAFE Queensland as a statutory applicable for the first time as from 2014- dates are as set out below. body cannot enter into a finance lease 15 that have had a significant impact on without the approval of the Queensland TAFE Queensland’s financial statements Treasurer and at the reporting date had is AASB 1055 Budgetary Reporting. no finance leases. AASB 1055 became effective from Leases where the lessor retains reporting periods beginning on or substantially all the risks and benefits of after 1 July 2014. In response to this ownership of the asset are classified as new standard, TAFE Queensland has operating leases and are not recognised included in these financial statements in TAFE Queensland’s Statement of a comprehensive new note ‘Budget Financial Position. Operating lease vs Actual comparison’ (Note 19). This payments are expensed in the period note discloses TAFE Queensland’s incurred and are representative of the original published budgeted for 2014- pattern of benefits derived over the lease 15 compared to actual results, with term. explanations of major variances, in respect of TAFE Queensland’s Statement (n) Goods and services tax of Comprehensive Income, Statement of Revenue, expenses and assets are Financial Position and Statement of Cash recognised net of the amount of goods Flows. and services tax (GST), except where The following new and revised standards the amount of GST incurred is not also became applicable to TAFE recoverable from the Australian Taxation Queensland as from reporting periods Office (ATO). In these circumstances, the beginning on or after 1 January 2014: GST is recognised as part of the cost of acquisition of the asset or as part of the • AASB 11 Joint Arrangements expense. • AASB 2011-7 Amendments to Receivables and payables are stated Australian Accounting Standards with the amount of GST included. The arising from the Consolidation and Joint net amount of GST recoverable from, Arrangements Standards [AASB1, 2, 3, or payable to, the ATO is included as a 5, 7, 101, 107, 112, 118, 121, 124, 132, current asset or liability in the Statement 133, 136, 138, 139, 1023 & 1038 and of Financial Position. Interpretations 5, 9, 16, & 17].
Annual Report 2014-15 | 47 3. Significant Accounting Policies (continued)
Reporting periods beginning on / after
AASB 15 Revenue from Contracts with Customers 1 January 2017 This standard contains more detailed requirements for the accounting for certain types of revenue from customers. Depending on the specific contractual terms, the new requirements may potentially result in a change to the timing of revenue from sales of TAFE Queensland’s goods and services. TAFE Queensland is yet to complete its analysis of current arrangements for sale of its goods and services, but at this stage does not expect a significant impact on its present accounting practices.
AASB 2015-7 Amendments to Australian Accounting Standards – Fair Value 1 July 2016 Disclosures of Not-for-Profit Public Sector Entities These amendments provide relief from certain disclosures about fair values categorised as level 3 under the fair value hierarchy under AASB 13 Fair Value Measurement. TAFE Queensland will early adopt this disclosure relief as from the 2015-16 reporting period in line with advice from Queensland Treasury.
AASB 9 Financial Instruments (December 2010) 1 January 2018 AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] The main impacts of these standards are that they will change the requirements for the classification, measurement and disclosures associated with financial assets. Under the new requirements, financial assets will be more simply classified according to whether they are measured at either amortised cost or fair value. This change is not currently expected to have a material impact on TAFE Queensland’s financial statements.
All other Australian Accounting Standards and interpretations with future commencement dates are either not applicable to TAFE Queensland’s activities, or have no material impact on TAFE Queensland.
48 Notes to and forming part of the financial statements For the year ended 30 June 2015
4. User Charges 2015 $’000
Sale of services 351,289 Sale of goods 2,011 Student fees 38,812
Total 392,112
5. Grants and Contributions
VET Purchaser’s grant 134,019 Rental support grant 52,621 Corporate operating grant 33,925 Information Technology implementation grant 24,899 Voluntary separation payments reimbursement 23,458 Donations, sponsorships and contributions 3,487
Other grants 17,3 8 9 Total 289,797
TAFE Queensland’s cost disadvantage in the market is recognised by the VET Purchaser’s grant, which funds TAFE Queensland for the differential staffing costs between public and private training providers.
6. Employee Expenses
Salaries and wages 264,690 Annual leave 38,151 Long service leave 6,469 Employer superannuation contributions 36,483 Other employee benefits 30,532 Payroll tax and fringe benefits tax 17,0 87 Other employee-related expenses 652
Total 394,064
The number of employees as at 30 June 2015, including both full-time employees and part-time employees measured on a full-time equivalent basis (reflecting Minimum Obligatory Human Resource Information (MOHRI)) is: 4,015.
Annual Report 2014-15 | 49 7. Supplies and Services 2015 $’000
Contractors 23,908 Property rental 54,991 Property, information technology support services, and transport 70,214 Travel and accommodation 8,536 Agents commissions 8,059 Advertising and promotions 7,428 Training materials 8,807 Printing and stationery 4,422 Minor equipment purchases 3,443 Subscription, books and publications 2,322 Finance, human resources and support services 8,491 Other 14,343
Total 214,966
Supplies and Services – Other includes remuneration to the auditors, Queensland Audit Office, for the amount of $85,700 for audit services invoiced during the year to 30 June 2015. Total audit fees payable to the Queensland Audit Office relating to the 2014-15 financial statements are quoted to be $135,000. There are no non-audit services included in this amount.
50 Notes to and forming part of the financial statements For the year ended 30 June 2015
8. Cash and Cash Equivalents 2015 $’000
Cash at bank 61,324 Queensland Treasury Corporation (QTC) Capital Generated Cash Fund 160,932 Total 222,256
Cash at bank includes educational bequests of $0.414 million.
Reconciliation of cash flows from operating activities Operating Profit 73,820 Adjustments for: Depreciation and amortisation 8,029 Asset Impairment 178 (Gain)/Loss on sale of property, plant and equipment 159
Change in assets and liabilities: Increase in receivables 4,456 Increase in GST input tax credits receivable (1,955) Increase in GST payable 621 Decrease in inventories 433 Increase in other current assets (6,605) Decrease in accounts payable (3,721) Increase in accrued employee benefits 5,382 Increase in other liabilities 18,844 Net cash provided by operating activities 61,954
9. Receivables Current Trade debtors 45,721 Less: Trade debtors for impairment (1,923) 43,799
GST Receivable 2,757 Accrued revenue 18,549 Other receivables 2,239 Total 67,343
Refer to Note 18 Financial Instruments (Credit Risk Exposure) for an analysis of movements in the allowance for impairment loss.
Annual Report 2014-15 | 51 10. Property, Plant and Equipment 2015 $’000 Buildings At fair value 4,641 Less: Accumulated depreciation (3,052) Carrying amount 1,588 Plant and equipment At cost 16,302 Less: Accumulated depreciation (11,558) Carrying amount 4,744
Carrying amount 6,332
Measurement of fair value The Replacement Cost Estimate was The fair value of the buildings has been prepared from plans and elevations, determined by Quantity Surveyor, GRC, The fair value measurement for buildings together with available schedules and using a depreciated replacement cost of $1.588 million has been categorised specifications. Where this standard of valuation technique, and adjusted for as a Level 3 in the fair value hierarchy. supplied information was not available price changes. The following table Refer Note 2(b). GRC determined appropriate information highlights the unobservable (Level 3) TAFE Queensland’s buildings were from Site Surveys that were conducted. inputs assessed during the valuation independently valued by Quantity Given the nature of the complex assets process and the relationship to estimated Surveyor firm Gray, Robinson & being assessed, GRC has applied a fair value. Cotterell (GRC) as at 30 June 2015. combination of pricing methodologies All purpose–built facilities are valued all of which are adjusted to reflect the using a depreciated replacement cost anticipated construction market as at approach, as there is no active market the effective reporting date. Detailed for these facilities. The independent estimates were also used to determine Quantity Surveyor conducted physical the cost of replacing the existing assets inspections. with a modern equivalent asset.
Fair Value Sensitivity Description at 30 June 2015 Unobservable inputs Range Analysis $’000 $’000 Construction Costs + 5% $1,667 Buildings $1,588 Condition assessment - 5% $1,512
Usage of alternative level 3 inputs (as per the above table) that are reasonable in the circumstances as at the revaluation date would not result in material changes in the reported fair value. The current value in use is considered to materially reflect highest and best use for all property, plant and equipment items.
52 Notes to and forming part of the financial statements For the year ended 30 June 2015
11. Intangible Assets 2015 $’000 Intellectual property: At cost 1,269 Less: Accumulated amortisation (554) Carrying amount 715
Software purchased: At cost 11,972 Less: Accumulated amortisation (9,974) Carrying amount 1,998
Software internally generated: At cost 24,845 Less: Accumulated amortisation (24,382) Carrying amount 463
Other intangible assets: At cost 139 Less: Accumulated amortisation (139) Carrying amount -
Work in progress At cost 13,563
Carrying amount 16,739
Annual Report 2014-15 | 53 12. Payables 2015 $’000
Trade creditors 38,466 Other 1,386 Total 39,852 13. Employee Benefits
Accrued salaries and wages 5,082 Annual leave levy 7,707 Long service leave levy 1,601 Total 14,390 14. Other Current Liabilities
Unearned revenue 32,428 Payments in advance 9,543 Other 751 Total 42,722
Refer to note 3(l) for further details on unearned revenue 15. Commitments for Expenditure
(a) Non-cancellable operating lease commitments Commitments in relation to non-cancellable operating leases are inclusive of anticipated GST and are payable as follows: Payable Not later than one year 1,196 Later than one year and not later than five years 3,494 Later than five years – Total 4,689
Operating leases are entered into as a means of acquiring access to office accommodation, storage facilities, and office equipment. Lease payments are generally fixed, but with inflation escalation clauses on which contingent rentals are determined. No renewal or purchase options exist in relation to operating leases and no operating leases contain restrictions on financing or other leasing activities.
54 Notes to and forming part of the financial statements For the year ended 30 June 2015
16. Contingencies At 30 June 2015, TAFE Queensland have 50 active claims with WorkCover Queensland, and 3 claims with the Queensland Government Insurance Fund. These claims are not considered to be material.
17. Events Occurring After Balance Date On 1 July 2015 the consortium agreement between TAFE Queensland, Box Hill Institute and GRM International Pty Ltd for the operation of the Australia Pacific Technical College was dissolved. TAFE Queensland will continue to provide APTC services but no longer as part of the consortium. As a result, all financial transactions for APTC will be reflected in TAFE Queensland’s financial statements in 2015-16 rather than being accounted for as a joint arrangement (refer to note 3a).
18. Financial Instruments TAFE Queensland has the following categories of financial assets and financial liabilities:
2015 Notes $’000 Financial Assets Cash and cash equivalents 8 222,256 Receivables 9 67,343 Total 289,599 Financial Liabilities Financial liabilities measured at amortised cost: Payables 12 39,852
All payables are not yet due for payment
Financial risk management exposure using a variety of methods as Credit risk follows: TAFE Queensland has an exposure to a Credit risk is the risk of financial loss to variety of financial risks, including credit TAFE Queensland if a customer or a risk, liquidity risk and market risk. Risk exposure Measurement counterparty to a financial instrument The TAFE Queensland Board has method fails to meet its contractual obligations, the overall responsibility for the and arises principally from TAFE Credit risk Ageing analysis establishment and oversight of the risk Queensland’s receivables from trade management framework. The Board Liquidity risk Sensitivity analysis debtor counterparties (credit provided established the Audit, Finance and Market risk Interest rate direct to customers) and deposits. Risk Management Committee, which sensitivity analysis The QTC Cash Capital Guaranteed Fund is responsible for developing and is an asset management portfolio with monitoring risk management policies. investments in a wide variety of high The Committee reports regularly to the credit rating counterparts. Deposits Board on its activities. are capital guaranteed. Cash is held TAFE Queensland measures risk with a regulated financial institution that
Annual Report 2014-15 | 55 18. Financial Instruments (continued)
has a credit rating of at least A+. The maximum exposure of TAFE Queensland to credit risk at balance date in relation to each class of recognised financial asset is the carrying amount of those assets net of any allowances for impairment, as indicated in the Statement of Financial Position. Ageing of past due but not impaired, as well as impaired financial assets are disclosed in the following tables:
Overdue Less than 30 31 – 60 Days More than 90 TOTAL 61 – 90 Days days $’000 $’000 days $’000 $’000 $’000 2015 Financial assets past due but not impaired Receivables 6,920 3,760 2,980 2,538 16,198 Total 6,920 3,760 2,980 2,538 16,198
Overdue Less than 30 31 – 60 Days More than 90 TOTAL 61 – 90 Days days $’000 $’000 days $’000 $’000 $’000 2015 Individually impaired financial assets Receivables (gross) – – 164 1,851 2,015 Allowance for impairment – – (82) (1,842) (1,924) Total – – 82 9 91
Credit risk is managed by the individual regions of TAFE Queensland who consider a provision for impairment for all debts more than 120 days overdue.
Liquidity risk Market risk Fair value Liquidity risk is the risk that TAFE Market risk is the risk that changes TAFE Queensland has not recognised Queensland will not be able to meet in market prices will affect TAFE any financial assets or financial liabilities its financial obligations as they fall Queensland’s income or the value of its at fair value, except for cash and cash due. TAFE Queensland’s approach to holdings of financial instruments. equivalents. The fair value of receivables managing liquidity risk is to ensure that TAFE Queensland is exposed to interest and payables is assumed to approximate it will always have sufficient liquidity rate risk through its cash deposited the value of the original transaction, less to meet its liabilities when due, under through its investments with QTC and any allowance for impairment. both normal and stressed conditions, cash deposited in interest bearing without incurring unacceptable losses or accounts. If interest rates were to change risking damage to TAFE Queensland’s by +/- 1% and with all other variables reputation. held constant, TAFE Queensland would have a surplus and equity increase/ (decrease) of $2.223 million. TAFE Queensland does not undertake any hedging in relation to interest risk and manages its risk as per the liquidity risk management strategy.
56 Notes to and forming part of the financial statements For the year ended 30 June 2015
19. Budget vs Actual Comparison Statement of Comprehensive Income
Budget Actual Variance Variance Variance 2015 2015 2015 2015 Notes $’000 $’000 $’000 % of Budget Income User charges 1 432,192 392,112 (40,080) (9%) Grants and other contributions 2 274,540 289,797 15,257 6% Other revenue 3 8,128 13,314 5,186 64% Total income 714,860 695,224 (19,636) (3%)
Expenses Employee expenses 382,098 394,064 (11,966) (3%) Supplies and services 4 319,163 214,966 104,197 33% Grants and subsidies 396 1,453 (1,057) (267%) Depreciation and amortisation 9,250 8,029 1,221 13% Other expenses 3,953 2,893 1,060 27% Total expenses 714,860 621,404 93,456 13%
Operating profit - 73,820 73,820 100%
Total comprehensive income - 73,820 73,820 100% for the year
Annual Report 2014-15 | 57 19. Budget vs Actual Comparison (continued) Statement of Financial Position
Budget Actual Variance Variance Variance 2015 2015 2015 2015 Notes $’000 $’000 $’000 % of Budget Current Assets Cash and cash equivalents 5 83,854 222,256 138,402 165% Receivables 67,415 67,343 (72) (0%) Other financial assets 6 25,511 – (25,511) (100%) Inventories 1,532 571 (961) (63%) Other 2,561 8,805 6,244 244% Total current assets 180,873 298,976 118,103 65%
Non-current Assets Property, plant and equipment 9,019 6,332 (2,687) (30%) Intangible assets 7 2,512 16,739 14,227 566% Other financial assets 3,135 – (3,135) (100%) Total non-current assets 14,666 23,071 8,405 57% Total assets 195,539 322,046 126,507 65%
Current Liabilities Payables 38,296 39,852 (1,556) (4%) Employee benefits 8 6,337 14,390 (8,053) (127%) Other current liabilities 46,101 42,722 3,379 7% Total current liabilities 90,734 96,964 (6,230) (7%)
Non-current Liabilities Provisions 1,749 - 1,749 100% Total non-current liabilities 1,749 - 1,749 100%
Total liabilities 92,483 96,964 (4,481) (5%)
Net assets 103,056 225,082 122,026 118%
Equity Contributed equity 103,056 151,263 48,207 47% Retained earnings - 73,820 73,820 100%
Total equity 103,056 225,082 122,026 118%
58 Notes to and forming part of the financial statements For the year ended 30 June 2015
19. Budget vs Actual Comparison (continued) Statement of Cash Flows
Budget Actual Variance Variance Variance 2015 2015 2015 2015 Notes $’000 $’000 $’000 % of Budget Cash flows from operating activities User charges 9 433,573 384,452 (49,121) (11%) Grants and contributions 274,540 290,067 15,527 6% GST input tax credits from ATO 10 – 19,197 19,197 100% Interest received 2,067 4,745 2,678 130% Other receipts 10 29,492 8,597 (20,895) (71%) Employee expenses (377,523) (386,990) (9,467) (3%) Supplies and services 11 (344,644) (247,240) 97,4 0 4 28% Grant and subsidies (396) – 396 100% GST remitted to ATO 12 – (8,776) (8,776) (100%) Other payments 12 (6,335) (2,099) 4,236 67% Net cash provided by (used in) 10,774 61,954 51,180 475% operating activities
Cash flows from investing activities Sales of property, plant and equipment – 20 20 100% Payments for non-financial assets 13 (5,000) (15,183) (10,183) (204%) Investment reedeemed 14 – 25,871 25,871 100% Net cash provided by (used in) (5,000) 10,708 15,708 314% investing activities
Cash flows from financing activities Net increase (decrease) in cash and cash 5,774 72,662 66,888 1,158% equivalents Cash transfers from machinery of 78,080 149,594 71,514 92% government Cash and cash equivalents at end of 83,854 222,256 138,402 165% financial year
Annual Report 2014-15 | 59 19. Budget vs Actual Comparison (continued) Explanation of Major Variances development programs ($27 Statement of Cash Flows million), and reduced expenditure Statement of Comprehensive 9. Cash inflows from user charges within regions due to continued Income were below budget mainly due to the consolidation activities, changes in accounting treatment of the Australia 1. The variance in user charges delivery and timing of facilities relates Pacific Technical College. is largely driven by a change in expenditure. the accounting treatment of the 10. The variance for other receipts is due Australia Pacific Technical College to the separate disclosure of GST ($30 million). This arrangement Statement of Financial Position input tax credits from ATO. is accounted for under A ASB 11 5. Higher cash and cash equivalents 11. The variance in supplies and Joint Arrangements in the financial balances resulted from the improved services is largely due to a change statements (refer to note 3(a)), operating profit, higher level of cash in the accounting treatment of the however this treatment was adopted transferred as part of the Machinery Australia Pacific Technical College, in late 2013-14 after the preparation of Government change ($72 million), capitalisation and timing of activities of the original budget which and transfer of funds from a term of information technology (IT) included all revenues and expenses deposit ($26 million). projects and product development associated with the operation in TAFE 6. The budget for other financial assets programs, and reduced expenditure Queensland’s accounts. comprised of a fixed term deposit within regions due to continued 2. The variance in grants and other that has been closed. consolidation activities, changes in delivery and timing of facilities relates contributions mainly relates to 7. The variance in intangible assets is expenditure. reimbursements received for mainly due to the capitalisation of IT voluntary separation payments ($23 projects and product development 12. The variance for other payments is million). costs. due to the separate disclosure of GST remitted to ATO, which were 3. The variance in other revenue is due 8. The variance in employee benefits is higher than budgeted. to an increase in interest revenue mainly due to an increase in accrued earned ($3 million) and ancillary salaries and wages ($5 million) and 13. The variance in payments for non- revenues. an increase in annual leave levy financial assets is mainly due to 4. The variance in supplies and payable ($3 million). the capitalisation of IT projects and services is largely due to a change product development costs. in the accounting treatment of the 14. Cash flows from investments Australia Pacific Technical College comprised a fixed term deposit that ($32 million), capitalisation and has been closed. timing of activities of information technology (IT) projects and product
60 Notes to and forming part of the financial statements For the year ended 30 June 2015
20. Key Management Personnel (a) Board Members all financial transactions were managed In accordance with Queensland through the accounts of the Department Government policy, as a public sector On 15 August 2013 the first TAFE of Education and Training. The Board employee, Mr Peter Price has not Queensland Board was appointed by the remunerations for the 2013-14 financial received any remuneration as a TAFE Governor-in-Council. Each of the current year were paid by the Department of Queensland board member. The Board board members have been appointed Education and Training. Members who were paid, or were due to until 14 August 2016. During the period be paid were: 1 July 2013 to 30 June 2014, the entire Board Members’ fees include fees paid operations of TAFE Queensland including for membership of TAFE Queensland’s Board and relevant Board committees.
2015 2014 Remuneration $ Mr Warren Tapp 60,041 52,407 Mr Darrell Butcher (appointed 11 December 2014) 20,860 – Mr Peter Dowling 38,194 33,573 Ms Elizabeth Honeycombe 38,194 33,270 Ms Anita Brown 38,194 33,270 Ms Vivienne Mallinson 38,194 33,270 Mr Gary Hargrave (resigned 30 June 2014) – 33,270 233,677 219,060
(b) Board Members’ transactions (d) Key executive management • Short term employee expenses which include: A number of the Board Members hold personnel transactions positions in other entities that may result Key executive management personnel • Salaries, allowances and leave in them having control or significant of TAFE Queensland or their related entitlements earned for the influence over the financial or operating parties conduct transactions with TAFE year or for that part of the year policies of those entities. AASB 124 Queensland on terms and conditions no during which the employee Related Party Disclosures excludes more favourable than those available, or occupied the specified position. Queensland Government departments which might reasonably be expected to • Performance payments and agencies as related parties of TAFE be available, on similar transactions to recognised as an expense Queensland. Excluding Queensland non-related entities on an arm’s length during the year (refer to note 20 Government departments and agencies, basis. (f)). TAFE Queensland has not conducted (e) Remuneration for key • Non-monetary benefits business in the 2014-15 financial year including fringe benefits tax. with related parties of any Board executive management • Long term employee expenses Members. personnel include amounts expensed in respect Key executive management personnel (c) Loans to key management of long service leave entitlements of TAFE Queensland are appointed earned. personnel under the TAFE Queensland Act • Post-employment expenses include None of the key management personnel 2013. Remuneration and other terms amounts expensed in respect of have personal loans with TAFE of employment are formalised in employer superannuation obligations. Queensland outstanding at 30 June individual contracts of employment. 2015. These contracts of employment make a • Termination benefits are not provided provision for an appropriate combination for within individual contracts of competitive fixed and variable of employment. Contracts of remuneration components. employment provide only for notice Remuneration expenses for key periods or payment in lieu of notice management personnel comprise the on termination, regardless of the following components: reason for termination.
Annual Report 2014-15 | 61 62 20. Key Management Personnel (continued) The following details for key executive management personnel include those positions that had authority and responsibility for planning, directing and controlling the activities of the business during 2014-15.
Short Term Maximum Long Term Post- Employee Expenses Total Potential Date Employee Employment Expenses Performance Role Responsibilities appointed Non- Expenses Expenses Monetary Payment1 to position monetary $’000 $’000 $’000 $’000 $’000 $’000 Chief Executive Officer Strategic and operational management of TAFE 1 July 2013 346 4 7 44 401 78 Queensland.
Chief Operating Officer Operational performance and the translation of 1 July 2014 216 4 5 27 252 37 organisational strategy into operational plans.
Chief Financial Officer Financial strategy and planning, financial systems and reporting functions, financial 4 August policies and procedures, procurement 188 3 4 24 219 34 2014 functions, and the evaluation of investment decisions.
Chief Information Officer2 Information and communications technology (ICT) strategy development, ICT contract 1 July 2014 181 3 4 19 207 19 management and procurement functions and ICT operational services.
Chief Academic Officer Academic strategy, teaching governance, learning and quality, and digital product 1 July 2014 2803 4 6 29 319 35 services.
Chief Human Resources Officer Strategic Human Resources direction and 1 July 2014 229 4 5 29 266 39 delivery of Human Resources services.
General Managers 1 July 2014
TAFE Queensland Brisbane 2853 - 6 27 318 44 TAFE Queensland East Coast 215 - 5 27 247 37 Directing the activities at TAFE Queensland TAFE Queensland Gold Coast campuses in each region in alignment 210 - 4 27 241 37 TAFE Queensland North with TAFE Queensland’s commercial and 227 - 5 29 261 38 strategic direction. TAFE Queensland SkillsTech 227 - 5 29 261 38 TAFE Queensland South West 216 - 5 27 248 37 1. Payment of performance bonuses occurs in the year following actual performance. Refer to note 20 (f). 2. From 1 July 2014 to 17 November 2014 the Chief Information Officer was appointed as an SES2, under s122 Public Service Act 2008. From 17 November 2014, the Chief Information Officer was appointed under an individual contract. 3. In 2014-15 performance payments were made to two key management personnel in relation to previously held roles: - The Chief Academic Officer received an incentive payment totalling $67,190 on the 3 October 2014. - The General Manager, TAFE Queensland Brisbane received an incentive payment totalling $21,516 on 8 August 2014. Notes to and forming part of the financial statements For the year ended 30 June 2015
(f) Performance Payments The variable component of remuneration is provided to executive managers through an annual incentive performance scheme. This scheme is designed to effectively reward a combination of key behaviours, capability and performance that are aligned to business and individual goals and targets. The performance payment is contingent upon the achievement of a Board-approved operating margin result. Performance payments may not exceed a maximum of twenty per cent of the CEO’s total remuneration package and fifteen per cent of all other key management personnel’s total remuneration package. Performance assessments occur after the end of the financial year and consist of: • Part A – assessment against corporate key performance indicators; • Part B1 – assessment against values and leadership behaviours; and • Part B2 – work unit contribution to corporate priorities. Performance assessments include both peer assessments and CEO assessment. Payment of performance bonuses occurs in the year following actual performance. As at the date these statements were certified by management, the performance assessment process for 2014-15 had been finalised and all payments made to key management personnel in 2015-16.
Annual Report 2014-15 | 63 Certificate of TAFE Queensland
These general purpose financial statements have been prepared pursuant to section 62(1) of the Financial Accountability Act 2009 (the Act), relevant sections of the Financial and Performance Management Standard 2009 and other prescribed requirements. In accordance with section 62(1)(b) of the Act we certify that in our opinion: (a) the prescribed requirements for establishing and keeping the accounts have been complied with in all material respects; (b) the statements have been drawn up to present a true and fair view, in accordance with the prescribed accounting standards, of the transactions of TAFE Queensland for the financial year ended 30 June 2015, and of the financial position of TAFE Queensland at the end of that year; and (c) these assertions are based on an appropriate system of internal controls and risk management processes being effective, in all material respects, with respect to financial reporting throughout the reporting period.
Warren Tapp Jodi Schmidt Cliff Kaye Chairperson Chief Executive Officer Chief Financial Officer TAFE Queensland TAFE Queensland TAFE Queensland
Date: 27 August 2015 Date: 27 August 2015 Date: 27 August 2015
64 INDEPENDENT AUDITOR’S REPORT
To the Board TAFE Queensland
Report on the Financial Report I have audited the accompanying financial report of TAFE Queensland, which comprises the statement of financial position as at 30 June 2015, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and certificates given by the Chairperson, Chief Executive Officer and the Chief Financial Officer. The Board’s Responsibility for the Financial Report The Board is responsible for the preparation of the financial report that gives a true and fair view in accordance with prescribed accounting requirements identified in theFinancial Accountability Act 2009 and the Financial and Performance Management Standard 2009, including compliance with Australian Accounting Standards. The Board’s responsibility also includes such internal control as the Board determines necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Auditor’s Responsibility My responsibility is to express an opinion on the financial report based on the audit. The audit was conducted in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. Those standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control, other than in expressing an opinion on compliance with prescribed requirements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board, as well as evaluating the overall presentation of the financial report including any mandatory financial reporting requirements approved by the Treasurer for application in Queensland. I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion. Independence The Auditor-General Act 2009 promotes the independence of the Auditor-General and all authorised auditors. The Auditor-General is the auditor of all Queensland public sector entities and can be removed only by Parliament. The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General’s opinion are significant.
Annual Report 2014-15 | 65 Opinion In accordance with s.40 of the Auditor-General Act 2009: (a) I have received all the information and explanations which I have required (b) In my opinion: (i) the prescribed requirements in relation to the establishment and keeping of accounts have been complied with in all material respects (ii) the financial report presents a true and fair view, in accordance with the prescribed accounting standards, of the transactions of the TAFE Queensland for the financial year 1 July 2014 to 30 June 2015 and of the financial position as at the end of that year. Other Matters – Electronic Presentation of the Audited Financial Report Those viewing an electronic presentation of these financial statements should note that audit does not provide assurance on the integrity of the information presented electronically and does not provide an opinion on any information which may be hyperlinked to or from the financial statements. If users of the financial statements are concerned with the inherent risks arising from electronic presentation of information, they are advised to refer to the printed copy of the audited financial statements to confirm the accuracy of this electronically presented information.
J W Welsh FCPA Queensland Audit Office as Delegate of the Auditor-General of Queensland Brisbane
66 Glossary of Terms Registered training An organisation registered to deliver and assess organisation (RTO) nationally recognised VET. A S Apprenticeship A system of training, regulated by law or custom, which combines on-the-job training and work School-based Pathways for Year 10, 11 and 12 students experience with formal off-the-job training, while apprenticeships and combining senior studies, VET and employment. in paid employment. traineeships (SATs) AS/NZS ISO An International Standard which provides Service Delivery Budget papers prepared on a portfolio basis 31000:2009 principles and generic guidelines on risk Statement (SDS) by agencies reporting to each minister and the management. Speaker. The document comprises a section for each departmental portfolio and one for AS/NZS 5050:2010 A Standard which describes the application of the Legislative Assembly of Queensland. It is the principles, framework and process for risk produced annually and provides budgeted management, financial and non-financial information for the as set out in AS/NZS ISO 31000:2009, to budget year. The SDS sets out the priorities, disruption-related risk. plans and financial statements of agencies. Australian Qualifications A comprehensive nationally-consistent Strategic plan The document which provides TAFE Framework framework incorporating all qualifications Queensland’s purpose and direction. It outlines recognised in post-compulsory education overall objectives (including contributions to throughout Australia. The framework identifies whole-of-government objectives, ambitions six levels in the VET sector: and targets) and how it will know if it has Certificate I, Certificate II, Certificate III, achieved those agency objectives (performance Certificate IV, Diploma and Advanced Diploma. indicators). C T Certificate 3 Guarantee A funding program administered by the Technical and further Provides a wide range of predominantly (C3G) Department of Education and Training designed education (TAFE) vocational tertiary education courses, mostly to assist Queensland students to complete their qualifying courses under the National Training first post school certificate 3 level qualification to System, Australian Qualifications Framework or gain a job or improve their employment status. Australian Quality Training Framework. F Traineeship A system of training regulated by law or custom FEE-HELP Fee-HELP is a loan scheme that assists eligible which combines on-the-job training and work fee paying students pay all or part of their tuition experience with formal off-the-job training, while fees. in paid employment. Full-time equivalents A representative number that is calculated by V (FTEs) assessing the hours worked over the financial year by all full-time and part-time employees, VET FEE-HELP VET FEE HELP is an income contingent loan and converting this to a corresponding number scheme available to assist eligible students of employees as if all staff were full-time. studying higher level vocational education and training (VET) qualifications to pay their tuition H fees. Higher level VET qualifications are at the diploma level and above. Higher Level Skills (HLS) A funding program administered by the Department of Education and Training VET in Schools (VETiS) A funding program administered by the designed to assist Queensland students to Department of Education and Training designed access a subsidised training place in a priority to assist Queensland school students to acquire certificate IV, diploma or advanced diploma level skills and knowledge required for specific qualification, or a priority industry endorsed skill industries as part of their school studies. set. Vocational education Post-compulsory education and training which I and training (VET) provides people with occupational or work- related knowledge and skills. Information and An umbrella term that describes the use communication of all technologies in the manipulation and Acronyms and Abbreviations technologies (ICT) communication of information. K A Key performance Tracking indicator used to measure the ABS Australian Bureau of Statistics indicator (KPI) achievement of outputs against goals. AFRC Audit, Finance and Risk Management Committee N D National Centre for Australia’s principal provider of VET research DET Department of Education and Training Vocational Education and statistics. Research (NCVER) E National Partnership An agreement between the Commonwealth EDRMS Electronic document and records management system Agreement and the states and territories to facilitate M coordination, monitoring and delivery of strategies to improve service delivery. MP Member of Parliament U N User Choice Australia’s principal provider of VET research NCVER National Centre for Vocational Education Research and statistics. Q R QAO Queensland Audit Office Recognition of Prior The recognition of competencies currently held, QDAN Queensland Disposal Authority Number Learning (RPL) regardless of how, when or where the learning occurred. A person’s skills and knowledge acquired through previous formal or informal education and training, work or life experience may be used to grant status or credit in a subject or module. Annual Report 2014-15 | 67