2011 ANNUAL REPORT

Annual Report 2011 1 OUR VISION

Leading the way in education and training to inspire success and transform lives.

OUR PURPOSE

Chisholm Institute excels in education and training and is respected and valued for enhancing the social and economic futures of individuals, industry and communities.

OUR VALUES

• Making a difference through learning • Integrity and respect • Excellence • Service and relevance • Diversity • Sustainable practices. Welcome

About this Report 4

About Chisholm 5

Board President Welcome 6

CEO Report 8

2011 Highlights 10

Our Organisation

Statistical Overview 21

Board 23

Chisholm Directors Group 29

Governance Report 34

Social Responsibility 41

Financial and Compliance Information

Financial Overview 44

Chisholm Institute Financial Reports and Performance 50 Statements

Caroline Chisholm Education Foundation Report 100

Caroline Chisholm Education Foundation Financial 107 Reports

Compulsory Non-Academic Student Fees 118

Activity Table 119

Financial Performance against Budget 121

Chisholm 2011 – 2014 Targets 122

Disclosures Index and Additional Compliance Reports 123

Acronyms 142

Annual Report 2011 3 About this Report

In the preparation of this report Chisholm has followed the reporting guidelines issued by Skills Victoria, Department of Education and Early Childhood Development. This report is based on the model annual report issued with these guidelines, in accordance with the Financial Management Act 1994, Australian Accounting Standards, Statement of Accounting concepts, authoritative pronouncements of the Australian Accounting Standards Board and other legislative requirements.

This report also includes details of the operations of the Caroline Chisholm Education Foundation and an audited financial report for the foundation. The Caroline Chisholm Education Foundation is a controlled entity of the Chisholm Board.

All financial information presented in this report is consistent with the audited financial report for Chisholm and the Caroline Chisholm Education Foundation.

Queries in relation to this report can be addressed to:

Director, Corporate Services The Chisholm Institute of TAFE (Chisholm) 2011 Annual Report is a Chisholm Institute report to the Parliament of Victoria required under Section 45 of the PO Box 684 Financial Management Act 1994. The report contains a report on Dandenong VIC 3175 the operations of Chisholm during 2011, audited standard financial E [email protected] and performance statements and other information required under Standing Directions of the Minister for Finance under the Act (Section Further information about Chisholm can be obtained on Chisholm’s 4 Financial Management Reporting) and the Financial Reporting internet homepage chisholm.edu.au Directions given under that Act.

Maria Peters Grant Radford Chief Executive Officer Chief Finance and Accounting Officer

29 February 2012 29 February 2012

4 Chisholm Institute About Chisholm

Chisholm’s vision is to lead the way in education and training to inspire success and transform people’s lives. At any one time there are more than 40,000 people developing skills at Chisholm’s six campuses in the southeast of Melbourne, at workplaces throughout Victoria and Australia, and overseas.

Chisholm is a Victorian Government institute of technical and further education established under the Education and Training Reform Act 2006. The responsible minister is The Hon. Peter Hall, MLC, sworn in as Minister for Higher Education and Skills. Chisholm was named in 1998, in honour of Caroline Chisholm, the early Australian reformer and humanitarian.

The Institute has grown Currently, Chisholm offers Chisholm also conducts Chisholm is a proud, public significantly and has become over 500 certificate, diploma, over 300 short courses for institute that has as its purpose a multi-sectoral Institute advanced diploma and graduate industry compliance and skills to excel in education and training delivering a broad range of certificate courses. It now offers development, as well as self- and be respected and valued education and training program places across three Chisholm improvement and recreation. for enhancing the social and and services in higher education, degree programs: Bachelor economic futures of individuals, Chisholm serves one of the VET and school sectors across of Community Mental Health, industry and communities. state’s most culturally diverse its campuses, online, in the Alcohol and Other Drugs; and fastest growing regions in workplace and overseas two streams of a Bachelor southeast Victoria, with modern with partner educational and of Engineering Technology; training facilities in Dandenong, government organisations. and Bachelor of Interactive Frankston, Berwick, Cranbourne, Media Design as well as higher Mornington Peninsula and Bass education programs with partner Coast. universities.

Annual Report 2011 5 Board President Welcome

Given the uncertainty of the year and the significance of market response, ongoing policy changes and funding cuts, the Board focussed on the impact of operating in a fully contestable funding environment. To this end, the Board’s emphasis for the year was on working with Institute management to respond to these challenges with the aim of strengthening the Institute’s ability to meet future demands and adapt to the changing environment – new measures, new dialogues and new planning needed to occur.

The Board’s Chisholm Strategy 2020 is an acknowledgment of the significance of setting long term strategic directions for the Institute. Chisholm 2020 provides vision, purpose and strategic directions for the Institute that reflects the education and training needs of its principal catchment in the southeast of Melbourne, its industry, businesses and communities.

In 2011, Chisholm continued its journey towards the achievement of the Board’s longer term 2020 vision that resulted in the finalisation and achievement of the strategies and outcomes of the three year Institute Strategic Plan of 2009 – 2011. A major focus for the Board On behalf of the Chisholm Board, I am proud to introduce Chisholm was to develop a new strategic planning framework to reflect the Institute’s 2011 Annual Report. The 2011 report reflects Chisholm’s current tertiary context, building enduring industry and educational commitment to deliver quality, responsive and innovative education partnerships and positioning Chisholm as a leading public tertiary and training for its students and in partnership with industry, provider in Victoria. government and its wider communities. The Board has embraced a new vision and purpose to ensure This annual report reflects the governance, strategic initiatives, ongoing success is underpinned by a robust and forward-thinking financial management and key operations undertaken during 2011. 2012 – 2014 Strategic Plan. It is this new vision that has marked the beginning of a strategic research process to revitalise the Institute’s 2011 was a challenging but successful one for Chisholm. In the first brand as Chisholm looks to build its reputation and achieve further year of full contestability in the VET training market, Chisholm achieved market growth and success in 2012. growth in government subsided education and training, returning a strong operating surplus. Chisholm’s performance remains strong while As a Board, there has always been a strong and professional focus refocussing the direction of the Institute in this changing environment. on our governance responsibilities and this has been even more important in the current changing and complex VET, tertiary and In 2011, Chisholm’s record as a proud, quality public provider was commercial environment. The Chisholm Board continued throughout reflected in it having the highest level government funded enrolments 2011 to ensure that the Institute retain its benchmark in governance and the largest number of students undertaking government subsidised by focussing on its strategic role and positioning Chisholm within the education and training in the state. A focus of the Board also was for the rapidly evolving education and training environment. In 2011, the Board Institute to build its commercial business and though there were some held two key planning workshops and continued an ongoing program pleasing results in new overseas markets and in building reputation in of informing itself of policy change, key trends and research related to international project work, this remains a priority for 2012. its region as well as engaging with key stakeholders on strategic topics aimed at dealing both with immediate and longer term challenges.

6 Chisholm Institute The Board also farewelled a long standing board member in 2011. I would like to express my gratitude to my fellow Board members for I would like to take this opportunity to recognise the contribution their commitment to Chisholm and their continued support to me as made to Chisholm Institute by Meg Collins-Hughes who did not seek Chair throughout the year. In particular, sincere thanks are due to the reappointment to the Board following her current term expiring in chairs of the three board committees who ensured the completion of September 2011. Meg has been a long serving Board member who the committees’ demanding work schedules. The success Chisholm first joined the Board in April 2003. Over her years of dedicated has experienced over this last year is testament to the dedication and service Meg served as Board Chairperson for two years and also hard work of the Chisholm staff, managers and the executive team. I chaired the Strategic Development and Monitoring Committee. In wish to commend CEO, Maria Peters whose leadership, focus and hard the period of Meg’s service on the Board, she oversaw a significant work during these challenging times, continues to ensure Chisholm’s period of change and established a long term vision for Chisholm ongoing success and to push the organisation forward so that it will through the development of Chisholm 2020. Meg was also the Chair thrive in the future. of the Caroline Chisholm Education Foundation Board and was a The year ahead will continue to present new challenges for a large passionate supporter of its establishment. She also made significant metropolitan TAFE institute such as Chisholm. Policy changes and contribution to the broader sector through her role on the Victorian likely changes in funding levels will require the continuation and TAFE Association Board for a period of six years. On behalf of the constant appraisal of the operations and strategic directions of the Board, I would like to thank Meg for her leadership and commitment to Institute. As a Board, we will continue to ensure that we can meet and Chisholm over the last nine years. address these and endeavour to successfully meet our obligations to 2011 saw Chisholm continue its responsibilities as a strong public government. provider and fulfilling its community service obligations. Though there I look forward to continuing to lead the Board to achieve the goals are many projects, initiatives and participation in local community outlined in our Strategic Plan, to maintain and build Chisholm’s events by both students and staff to reflect this; this is no better leadership through education and training and pursue excellence in all demonstrated than through the work and success of the Caroline that we stand for and do in 2012 and beyond. Chisholm Education Foundation. In 2011, the Foundation awarded 198 grants that included scholarships, bursaries and special projects such as the CREW@Chisholm program and the Bass Coast Travel Grant. All the awarded grants afforded many students an opportunity to undertake study that they may have not been otherwise able to because of personal and financial barriers. David Willersdorf I would also like to acknowledge the significant contribution of state Board President and federal governments to our capital development in 2011. This has included a number of key capital projects including the completion 29 February 2012 of the Automotive and Logistics Centre at Dandenong, the opening of a major industry flagship, the Centre for Sustainable Water Management and the first Trade Training Centre built on Chisholm land with our partner schools, DREAM. The Board is committed to improve the facilities at each of its campuses and it made a considerable contribution to these facilities. The Board will continue to build funds to reinvest in capital and other key projects that enhance the learning experience for our students.

Annual Report 2011 7 CEO Report

characterised by disadvantage, cultural diversity and disengaged youth requiring a range of blended learning options and skill recognition for existing workers and industry.

In addition, we have maintained a strong commitment to our corporate social responsibilities and our community service obligations as a public provider. Many students and staff have contributed their time and skills by being involved in key community projects, supporting disengaged and disadvantaged groups as well as giving their time to a range of community, business, education and planning committees and events, all of which made a difference, provided improved access to opportunities and strengthened our communities.

As a major public metropolitan training provider, Chisholm faced fierce training competition throughout the year across our regions of southeast Melbourne and Bass Coast. However, we managed to grow our Victorian Training Guarantee funding and to record the highest level of enrolments and student numbers in the state.

2011 saw a rebuilding of the Institute’s fee-for-service products and 2011 was another good year for Chisholm and it is with great pleasure services and the development of a new commercial business growth that I share and acknowledge our achievements and successes. plan where the focus is to maintain existing and build new, enduring, commercial partnerships. Despite the challenges facing international 2011 was the first year of Chisholm operating in a fully market- business, Chisholm had success in developing new overseas markets driven education and training environment and with it came many and international project work. Our students also had the opportunity challenges. I am proud to state that overall the year was a successful to undertake research, study and work overseas as part of their one in many areas. It also was the year in which the Institute initiated programs offering them an exciting international experience. areas of improvement that in the longer term will build on the Institute’s reputation with its students and customers; strengthen our As Chisholm’s principal catchment has one of the lowest participation position in the VET sector; and ensure our ongoing success. rates in education and training in the state, a major focus in 2011 was to work in partnership with schools and universities to build aspiration. Throughout this annual report you will read the many highlights and We have continued to diversify our programs and shift our focus, achievements of our students and staff from across the teaching and becoming a tertiary institution and a major tertiary destination for support areas, as well as the many valued and effective partnerships students in the southeast. that have been fostered with schools, universities, industry, community, government and international clients. These examples reinforce We have implemented a comprehensive tertiary strategy that includes Chisholm’s position as a leading and well respected TAFE institute in enhancing our degree offerings either through offering our own Victoria. We believe partnerships and relationships that bring mutual degree programs, by offering our partner degrees or by having a range benefit and that strengthen our communities are important. of guaranteed pathways offered at Chisholm or at nearby partner locations to provide seamless tertiary options for our students. We Chisholm’s strong track record and commitment to individuals, offered our first degree in 2011, the Bachelor of Community Mental communities and industry has continued with a greater focus on Health, Alcohol and Other Drugs and had two new degrees accredited; innovation, flexibility and responsiveness to all clients resulting in the Bachelor of Interactive Media Design and two streams of a growth and financial success. We have maintained our commitment to Bachelor in Engineering Technology. our core business – the provision of quality, responsive and relevant education and training for industry as well as the broad spectrum Building strong education pathways and partnerships was important of service and community organisations across our region. We have in 2011. Chisholm plans to offer, in partnership with La Trobe continued to plan programs that meet local employment and career University, the Bachelor of Accounting where entry to the program opportunities in our region and to offer innovative programs and is guaranteed on successful completion of Chisholm’s Diploma of services that meet the needs of our student cohort. This cohort is Accounting. Productive dialogues commenced with Swinburne

8 Chisholm Institute University to offer Chisholm graduates in selected courses a The success achieved in 2011 was largely due to the staff and the guaranteed place and advanced standing in many of their linked leadership across many levels of the organisation. Staff at Chisholm degree programs. The Deakin at Your Doorstep program continued to bring their minds, hearts and souls to work each day together with successfully operate at our Dandenong campus and expanded to our professional expertise and invaluable experience. Throughout Mornington Peninsula campuses in children’s services and over 70 per 2011, given the level and complexity of change, our staff remained cent of Chisholm diploma and advanced diploma courses now have committed to the Institute’s vision and values and were focused on formal pathways agreements into higher level courses at Chisholm or the core reason for our existence – to provide quality education and with our university partners. training and exemplary services and put our students and industry partner needs first. Chisholm has continued to strengthen its relationship with Monash as the major university in its region and to build programs and During 2011, a number of staff retired or left the organisation and pathways for our students. This is best illustrated at Berwick where I would like to acknowledge the contribution of these staff. I wish the collaboration saw a number of guaranteed pathways available for to once again extend my thanks to all staff for their individual and Chisholm students who met entrance requirements in nursing, health collective contributions to the success of our students in their promotion and social welfare. learning and experiences at Chisholm, for developing effective and enduring relationships with partners and clients and for meeting many A new Chisholm 2020, a Planning Framework for 2012 - 2014 and of the challenges of 2011. a revised Chisholm Strategy were endorsed by the Board and will be launched in 2012. This builds on the groundwork and impetus gained I also wish to acknowledge the contribution of the executive and from the previous strategy. In addition a more succinct and aspirational management teams who often work above and beyond expectations. vision and new purpose was developed as well as making the I would also like to acknowledge our industry and community partners language of the three strategic directions: Institute of Choice, Partner during 2011, which is fundamental to the ongoing success of the of Choice and Workplace of Choice clearer and more meaningful. Institute. The Institute Strategy 2012 – 2014 is clear and simplified with only Chisholm continues to have a board that works together to offer two plans, Teaching and Learning, and Organisational Growth and strong strategic leadership and advice. I would like to thank all of the Sustainability. The Framework more strongly links teaching and learning members of the Institute Board for their leadership, expertise and to the Board’s vision and directions as well as requiring departments to commitment throughout the year and express my appreciation of the form a 2014 vision and state key 2012 focus and actions. All plans of support and guidance of the Board Chair, David Willersdorf. the Institute are solidly linked, from the Board to the actions of staff, in realising the Institute’s vision. To reflect a new vision and new strategic For Chisholm, 2011 was a year of significant change and in many plan, the Institute embarked on a strategic process and research to ways preparing and positioning the Institute to be able to respond revitalise its brand which will be launched in 2012. to government expectations and any further changes likely to result from external factors. As we move forward, our continued success in The revised Chisholm Strategy and refreshed brand demonstrate the increasingly competitive marketplace will rely on our continuing Chisholm’s preparedness to operate in a fully contestable tertiary capability to provide students with high quality education and training, environment; its alignment to government policy and priorities; and along with our continued focus to implement customer-focussed the provision of a framework to assess program provision and services practices. We are still on a journey at Chisholm and I am confident to position the Institute to realise a strong future. that the work undertaken during 2011 positions Chisholm to face the Chisholm now operates across three key educational sectors to meet future and contribute as a leader in the VET and emerging tertiary government policy and the needs of its region – senior secondary, sector. Chisholm is well positioned to look forward to 2012 and vocational education and training and higher education. As a result, beyond with a high level of confidence. Chisholm is now a very large and complex organisation. To support this we began to implement a new effective and transparent internal communications strategy, I matters and a strong focus on being a workplace of choice including a new approach to recognition and reward largely driven by staff. This will continue to be a major focus in 2012. Maria Peters CEO

Annual Report 2011 9 2011 Highlights New education and training facilities

National CEO Maria Peters and The Hon. Anthony Byrne Water Centre

Chisholm’s National Water Resource Training Facility at Cranbourne was officially opened by The Hon. Anthony Byrne, Federal Member for Holt. The $8.2 million new multipurpose facility includes a pioneering water treatment plant, a water quality testing lab, industry research and development area, recycling programs and controlled environment horticulture facility. As well, an undercover training space accommodates heavy secured and students will Training Centre to be constructed on Chisholm and Frankston Council machinery, allowing students to commence training in 2012. land at the Samuel Sherlock Reserve has commenced its planning get hands-on experience with during 2011. The 13 independent and Catholic schools consortium earth moving plant equipment DREAM for received council support and has commenced work on developing an and be taught civil construction the future innovative regional trade training model. skills, such as pipe-laying, trenching and shoring. The first Trade Training This new Trade Training Centre will provide students from Years 9 to Centre, DREAM, a consortium 12 with access to vocational education and training, giving schools Automotive of five schools and Chisholm, a broader range of options to improve Year 12 retention rates and and Logistics was constructed in 2011 at enhance pathways into vocational careers. Centre Chisholm’s Dandenong campus. The facility designed to meet Chisholm hosts another Trade Chisholm enhanced its the VET learning needs of Training Centre with school reputation as a leading young people reflects a range partners automotive and logistics of innovative learning areas, training provider in Victoria including building, electro- The Southern Peninsula Trades Training Centre (SPTTC) was with completion of a new technology, engineering, hair developed with a consortium of six schools in the Mornington Automotive and Logistics Centre dressing and beauty therapy. Of Peninsula, with the aim to increase access for young people to high at its Dandenong campus. The significance in the facility is the quality technical training. This consortium successfully applied for $15 million training complex technology centre which aims to funding under the Australian Government’s Trades Training Centre hosts the latest technology create innovative thinking and in Schools Program. The SPTTC will have two sites and has as its and features a full diagnostics design with our young students. main goal to bring together the needs of the local economy and the laboratory, natural gas fired infra Delivery will commence in 2012. aspirations of young people to encourage engagement in lifelong red paint curing system, body learning. Courses to be offered will also have clear pathways to repair workshops and more. Finally a further study. One of the sites is at Chisholm’s Mornington Peninsula Major sponsorship agreements START up campus and will offer industry standard training in carpentry, allied with Sidchrome, Bosch, Lucas health and electro-technology. The other site is at Somerville Nuelle and Lowbake have been The School TAFE Alliance for Secondary College which will provide training to meet the needs of Regional Training (START) Trade the local plumbing industry. 10 Chisholm Institute Building higher New education at degrees Chisholm Engineering Pathways Pathways, to higher credit and ​Chisholm’s Bachelor of Engineering Technology degree was accredited learning a place and launched as a specialist degree that responds to the needs of the An exciting partnership Most Chisholm diploma manufacturing industry. The first of its kind in the VET sector, study between Chisholm and graduates would expect to focuses on the technology, its application, system operation and the La Trobe University get some level of credit into a development and maintenance of plant and equipment. The degree to be was established to give bachelor degree in the same offered at Dandenong in 2012 has been developed in partnership with students a pathway industry or discipline area. In Engineering Australia (Victoria), the South East Melbourne Manufacturers to university level 2011, Chisholm tackled the Alliance Inc. (SEMMA), and South East Business Networks (SEBN). qualifications. A unique next step in creating reliable Interactive media design three-year degree and robust learning pathways program has been for graduates. For Chisholm’s The Bachelor of Interactive Media Design, the third Chisholm degree developed where a first- three bachelor degrees, to be developed, was accredited in 2011. Chisholm’s commitment to year TAFE accounting diploma and advanced diploma engagement with industry will ensure graduates of the degree have qualification is combined graduates who meet the entry the knowledge and skills vital to a rapidly expanding design and visual with a further two years criteria are assured of a place communication field. The degree is driven by trends of converging of university study to under The Chisholm Guarantee. and rapidly emerging technologies, with graduates expected to enter complete the Bachelor In addition, Chisholm now industry with both print-based design skills and knowledge and of Accounting. Both has formal Memoranda capabilities in the design and interactive media functionality. Chisholm Chisholm and La Trobe of Understanding (MOU) graduates will have the distinct advantage of heralding the combined University are committed with three universities skills of a graphic designer and a web/interactive media designer. The to ensuring that world- that guarantee places first intake will commence in 2012. class education programs with advanced standing in are accessible in the nominated bachelor degrees. Community health communities where With La Trobe, Chisholm’s The Bachelor of Community Mental Health, Alcohol and Other Drugs they operate, with 32 Diploma of Accounting degree developed by Chisholm to meet the growing demand for enrolments commencing graduates have a place in the people with the appropriate knowledge, skills and attitudes to work in 2012. Bachelor of Accounting. With across the spectrum of community-based mental health and alcohol Monash, Chisholm graduates and other drugs (AOD) treatment services had its first intake in 2011 from community services with a total 32 students across first and second year. The majority of and health courses can apply students were existing workers. for reserved places in three In 2011, Chisholm’s three bachelor degree courses, gained CRICOS Monash bachelor degrees registration for the courses to enable their promotion and delivery to at Berwick campus. And in international students. the first stage of ongoing negotiation, graduates from To build our tertiary offerings, there was a focus in 2011 to build the 10 Chisholm diplomas are range of graduate programs offered at Chisholm. Vocational graduate guaranteed a place in a range certificates were developed in digital marketing, family violence work, of linked bachelor degrees at community services practice (client assessment and case management) Swinburne. and the Vocational Graduate Certificate in Eco Tourism Management also launched in 2011, with the involvement of Phillip Island Nature Parks.

Annual Report 2011 11 2011 Highlights

Dr Duncan Sutherland, Working in Phillip Island Nature Parks Partnership Milestones with key partners On-the-job

Chisholm aims to form enduring partnerships. Two of these reached management significant milestones in 2011. Chisholm is responsible for training training all Australian Defence Force (ADF) cooks and stewards, a training Strong on-the-job management partnership which extends beyond 13 years. In addition, Chisholm training was a focus in 2011. has reached a seven-year milestone in its partnership with Toyota. Chisholm continued its successful Chisholm continues to deliver the Advanced Diploma of Engineering in partnership with Volunteer Fire Technology (Mechatronics) at Toyota’s manufacturing plant at Altona. Brigades Victoria (VFBV) by Chisholm has two specialist engineering teachers on location at delivering another certificate Altona on a full-time basis to deliver the program to selected Toyota in frontline management as a employees in the highly specialised area of mechatronics and robotics. scholarship program sponsored by Darley. The investment Essential services BlueScope by the VFBV to enhance the The Professional Development and Learning Department are building a training leadership capability of Country niche market by developing and implementing customised and sector Fire Authority volunteers who specific programs across the government essential services sector The Institute made a strong are involved in such important to support the development of the sector in the area of training and response to the needs of community service work also assessment. Strong relationships have been developed and culminated staff at BlueScope through acknowledges the benefits for in the delivery of numerous programs to Victorian State Emergency provision of counselling career local communities going into the Services including complete qualifications, skills sets and recognition advice, skills recognition and future. Groups of staff in the programs to both career members and volunteers. Approximately customised courses to assist workplace at Grenda, EPA, Skilled 150 people participated in the programs which has facilitated the transition to allied or alternative and City of Greater Dandenong implementation of best practice and improved processes to ensure employment opportunities. An were trained in management members are better equipped to provide emergency service. example of the relationship with qualifications. BlueScope, industry, Department Workplace school-based of Education, Employment and School apprenticeships at Jayco Workplace Relations (DEEWR) partners and Skills Victoria was a Chisholm delivered the Certificate III in Recreational Vehicle Chisholm signed a key MOU with specifically designed intensive Manufacturing in the workplace to two groups of school-based Pakenham Secondary College training program to support apprentices at Jayco. Jayco is the largest manufacturer in the to work more collaboratively to industrially skilled BlueScope Dandenong region with over 900 employees. Jayco, like Chisholm, assist the school lift retention staff in compliance skills that has excellent links with local secondary colleges and has sourced its and completions. The primary would allow entry into work apprentices from local schools in the Dandenong region. focus of the MOU is to develop opportunities in both the civil program offerings, linked to local construction and mining sectors. Milwauki partnership needs, and identify possible The program was endorsed by infrastructure developments. In Chisholm signed a partnership with Milwaukee Electric Tool Corp., the Civil Contractor Federation, addition, the Institute supported giving the Institute’s plumbing students the latest tools from the the peak employer body with program design and industry leading manufacturer. Milwaukee Electric Tool Corp. is an industry- over 2,000 company members, research for secondary school leading manufacturer and marketer of heavy-duty, portable electric and Skills DMC (Drilling Mining development programs, with power tools and accessories for professional users worldwide. The and Civil) who represent the skills four partner schools, Western partnership allows students to use the latest in portable electric training needs of the resources Port, Pakenham, Monterey and power tools. and civil industries. Hampton Park.

12 Chisholm Institute Australia in a one-day workshop Mornington Peninsula hairdressing students to provide experiences, perspectives and solutions as input into the formation of a Respect Agenda focussed on young people and their views around community respect. The development of this agenda was made possible through a $50,000 grant awarded to Scouts Australia. Chisholm’s work with a range of young people through its TEC, was recognised by Scouts Australia and input sought to inform the development of this key piece of work. Staff and students engaged in discussion and responded to questions around issues such as violence and 14 part-time students in 2008 finally for Chisholm staff the Phillip Island bullying, and were given the to 120 graduates in 2011. The partnership increased industry partnership opportunity to outline their growth reflects Chisholm’s currency, professional growth views and experiences and to In 2011 Chisholm and Phillip ongoing commitment to giving and modelling by developing propose solutions for the future. Island Nature Parks launched people access to skills and positive relationships with a unique vocational graduate qualifications that allow them students and child care centres. Skill certificate designed to respond access to greater career pathways. to international and local Scouts and shortages visitor demand for Australia’s A three way Chisholm and skilled nature-based tourist operations. migration benefit Several new opportunities The Graduate Certificate in The Early Childhood Education developed in 2011 working to industries Ecotourism is the first higher department developed a support and partner Scouts panels qualification to combine the partnership with 17 Good Start Victoria. Chisholm delivered science of ecotourism with Chisholm is strongly supporting Child Care Centres to create an leadership program outdoor business management to give the Department of Business effective placement system leadership training and the graduates a greater knowledge, and Innovation’s (DBI) Skilled which supports and is beneficial Mental Health First Aid understanding and appreciation of and Business Migration program. to all parties – students, Chisholm program to 12 members of the economic and environmental Chisholm was invited to be teaching staff and centre staff. Scouts Victoria. Chisholm also factors required to operate a an industry panel member in The benefits for students commenced a state-wide successful and sustainable the manufacturing area which included additional support and recognition process against ecotourism organisation. has been identified under this mentoring, developing best accredited qualifications and initiative as experiencing specific Existing practice quickly and having Berwick TEC students used their skills shortages in the labour workers transparent and immediate newly developed building and market. Chisholm’s role is to student participation in the construction skills to build new assist in the skills recognition moving into centre; for centre staff there recreation facilities at Gilwell Park. management and assessment of applicants’ was less demand on their time, curriculum vitaes in the areas The School of Business, they were able to work collegially Collaboration of fabrication and metals and established to give existing with TAFE staff to support on a Respect mechanical trades including workers of the southeast access improved centre practices as Agenda post trade qualifications to management jobs through well as accessing professional assessments. The Berwick TEC staff and graduate programs, grew from information and training and students worked with Scouts

Annual Report 2011 13 2011 Highlights Winners

Dandenong Outstanding Apprentice of the Year, Matthew Chick with Chisholm Board President, Chamber of David Willersdorf and Phil Hayes from Okuma Commerce Youth Enterprise Award

Automotive apprentice Kelly Byford won the prestigious Dandenong Chamber of Commerce Youth Enterprise Award at the Chamber’s Business Enterprise Awards ceremony in front of 800 business guests at the Crown Palladium in March. Kellie also displayed her consummate skills in public speaking in giving the key note address at Chisholm’s Apprentice and Trainees Awards Evening. She The annual Chisholm award winners in 2011 were worthy recipients Engineering completed her apprenticeship at and we are proud of their achievements. The student winners were apprentice Doncaster BMW and her career Matthew Chick, as the Outstanding Apprentice of the Year Certificate goal is to start her own business. III Engineering (Mechanical) and Clorinda Siemienowicz as the interviewed on Kelly was also selected as a Outstanding Vocational Student of the Year, Diploma of Youth Work. ABC Radio candidate for the Commonwealth Both of these students were exemplary in their studies, were leaders Chisholm mechanical engineering Government’s Today’s Skills in their classes, supportive of their peers, and demonstrated real apprentice Matthew Chick Tomorrow’s Leaders 2009 passion and commitment for their career field. We are confident they was interviewed by ABC Radio program where she met with Julia will be successful in their future endeavours. Electrical Apprentice talk-show host Richard Stubbs Gillard to discuss the issues faced Teacher, Stuart Blamey was nominated for, and won, Chisholm’s about life as an apprentice and by apprentices. Outstanding Teacher of the Year Award. Stuart, as well as being an quizzed Matthew for over 40 exemplary and committed teacher, took a strong personal interest minutes on-air on key issues and Culinary in ensuring apprentices that have difficulty with their studies were challenges facing apprentices. competition offered additional support for better outcomes. Matthew was one of over 400 engineering apprentices at Chisholm hospitality students, Chisholm and is a remarkable Will Whitby and Rohan Smith and switched on 22-year-old won the second and third-year young man who previously won apprentice categories in the Chisholm’s Apprentice of the Hospitality Training Network’s Year Award and now works for National Culinary Apprenticeship Garry Rogers Motorsports in Competitions. Dandenong. Matthew was not overawed by the circumstances at all and answered Richard’s sometimes tricky questions on a federal government report into apprenticeships like a radio pro.

14 Chisholm Institute It was another successful year where students, individually or in teams, and staff achieved remarkable things during 2011.

Manufacturing She’s got Hair and Engineering Skills the ‘IT’ factor beauty talents

Advisory Board (MESAB) Business IT student Allison Sharna Heitman, a Diploma of Training Awards Kirby achieved a perfect score Beauty Therapy Student won The 2011 MESAB Training Awards were held in May, with a Chisholm in 22 minutes and 28 seconds the HBIA Award for the Diploma Manufacturing Engineering and Logistics Department staff member of the allowable 50 minutes in of Beauty Therapy category and and student being recognised for their achievements. Samuel Pop, the Microsoft Office Specialist was nominated for the City of MEL Technical Support Officer at Frankston won the Young Industry certification exam. Now Allison Greater Dandenong Chamber Ambassador Award. Sam was selected based on his eagerness and has been nominated for the of Commerce - Youth Enterprise enthusiasm as an ambassador to present his fitting and turning trade Microsoft Office worldwide Award. In the WorldSkills and manufacturing to secondary school students. Christopher Wright, competition in 2012. The top Regional Competitions, Chisholm a mature age student and a qualified motor mechanic, won the TAFE graduates in each country will student Sarah Hensley won gold Student of the Year Award. Christopher has completed his Advanced meet in Las Vegas for a world in the Beauty Care Category and Diploma in Engineering Technology with high distinction. Striving to challenge. Allison, who studied Kirsty Stanley won a bronze in better himself in his field, Chris is a technical writer for an engineering the Certificate IV in Library/ the Hairdressing Category. company and eventually wants to complete an engineering degree. Information Services full-time at Cranbourne, is also a mother Small business Emilie’s scholarship is ABC of two teenage children with training reaps after school activities. The Chisholm graduate Emilie Abad has won the third 2010 ABC Women in rewards Microsoft certification is offered Broadcast Technology Scholarship. The Scholarship, instigated by the At the 2011 National NEIS as a bonus with the course. ABC to encourage the participation of women in the engineering and Awards, the Best Growth Overall about 260 people technology sides of the broadcasting industry, included four weeks Business was awarded to have completed the vendor paid on-the-job training at the ABC and a $1,000 book allowance. Airflow Mechanical Solutions, certification exam in 2011. one of the small businesses trained under the NEIS program at Chisholm. Widely read

Dr. Anita Milicevic, Higher Education Coordinator, Bachelor of Community Mental Health, Alcohol and Other Drugs, had her paper, Refugee trauma worse than war trauma, published in the Wall Street Journal among other publications globally. Her aim when writing the thesis was to develop more effective responses to refugee Emilie, settlement challenges and help second from left, with colleagues improvement of public policies on refugees in Australia.

Annual Report 2011 15 2011 Highlights Educational Initiatives

Pathways for young people Apprentices also received a free 12-month student membership with MBAV, entitling them to wage and career advice and discounts Creative project-focussed and client-specific delivery for youth was on tools, cars and fuel. Apprentices also have access to a dedicated focus for the access area in 2011 with the Freshstart initiative and website providing information and support during their apprenticeship. expanding the Xpress program to Frankston. Both of these programs were a great success, building the confidence and self belief of the Bass Coast project youth involved, with participants confirming pathways either back to a great success secondary schools or onto a mainstream TAFE program. 2011 saw the successful completion of the Victoria Works for job VCAL a hit! seekers with employment challenges project. Over 150 job seekers participated and were engaged in the project with required job VCAL children’s services and brick and landscaping students outcomes achieved two months ahead of the project deadline. The participated in the SAFET1 state wide rap competition sponsored by skills gained will assist the participants to gain employment or provide WorkSafe and the Victorian Applied Learning Association. The students them with a strong foundation to continue their lifelong learning wrote and performed a rap song then produced a video winning the journey. state wide competition. As prize winners a professional film team came to Berwick TEC and produced a film clip that was designed by the Valuing LLN in the workplace students. The resulting video was shown on Channel 31. DEEWR’s Workplace, English Language and Literacy (WELL) area Apprentices soar funded Chisholm for two key projects, one to develop a network model for small to medium sized enterprises to increase awareness Berwick TEC has seen strong growth in the delivery of Certificate about workplace LLN and how to access WELL funding to address III in Bricklaying and Block Laying during 2011. A key factor in the these collectively (the ENTWINED network) and a major project with success of this course is the blended delivery model that incorporates Agrifoods ISC for the development of assessment models which a combination of on-site assessment, online theory and assessment embedded LLN assessments in competencies from the current and practical tasks. This is supported by strong links with industry training package. to ensure validation of the current course content and to inform Chisholm if changes are necessary as industry needs change. Chisholm’s new Extensive development to continually improve the online resources e-learning framework continued in 2011 to move the resources from predominately text based to a more advanced and professional online model that Under Chisholm’s new e-learning framework, Chisholm’s learning improves the student’s learning experience and outcomes. management system is utilising Moodle as its platform for its virtual learning environment and providing allowing students and staff Cutting drop-out rates individual e-portfolios (using Mahara) and supported by individual in apprentices client learning resource repositories (Equella). This will allow for greater student access from remote and off campus locations. Building and Furniture Program Coordinator, Fraser Dempster, supported a Master Builders of Victoria (MBAV) program to reduce Chisholm has also set itself new strategic targets in the development the drop-out rate of apprentices in the building industry. Fraser of online learning resources complimenting a broader range of blended worked with MBAV careers officers to provide Chisholm as a venue for delivery options for program delivery. Chisholm is also developing apprentices to access relevant, clear and centralised information, as its myLearning Student Support Centre to provide all students with well as developing a MBAV student membership scheme called Alink. online support for its learning management system.

16 Chisholm Institute ESL students at Dandenong

International developments • Two short courses were delivered for over 26 representatives from more than 15 African countries on reviewing Australia’s VET The International Division has made significant headway in system and reviewing their own TVET systems in the context of raising Chisholm’s profile with several successful outcomes in the the Australian and other African systems. The course was aligned to international arena with some real gains in the project area. units of the Graduate Certificate in VET and was a great success.

In 2011 Chisholm hosted 13 new international students who were awarded Australian Development Scholarships to further their tertiary Chisholm and Hanoi education. Students were from Papua New Guinea, Vanuatu and University of Industry New Caledonia. Australian Development Scholarships are a highly partnership valued form of development cooperation that aims to contribute to Chisholm signed a MOU with Vietnam’s Hanoi University to the long term development needs of Australia’s partner countries to provide education and training abroad. The Institute’s International promote growth and stability. They equip scholars with the skills and Department welcomed the university’s top officials, Rector, Tran Duc knowledge to drive change and influence the development outcomes Quy, Vice Rector, Bui Thi Ngan and Dean of Faculty of International of their own country through obtaining tertiary qualifications at Cooperation and Training, Nguyen Thanh Tung to the Dandenong participating Australian higher education institutions and technical campus to discuss plans for the partnership. colleges. Scholarship holders are required to return to their country of citizenship for two years after they have completed their studies to An international contribute to the development of their country. beauty partnership

The following AusAID funded projects were successfully tendered The Institute signed a MOU with Madame Stella Director of the Stella and undertaken in 2011: In Beauty Academy, Malaysia defining credit transfer arrangements • A customised short course on Integrated Water Resource and pathway opportunities for the academy’s students. Senior staff Management aligned to the Graduate Certificate in Water from the academy also accompanied a group of 12 students on a Leadership Management was conducted in Australia for 20 five-day study tour. The students and staff participated in a range of professionals from Cambodia. Chisholm in collaboration with Earth training activities which showcased the Institute’s diploma program Systems and Entura (Hydro Tasmania) delivered the course that and its beauty and spa facilities at the Berwick campus. included a mixture of classroom training and activities, meetings with key Australian government agencies, and site visits to a range of catchments in Victoria, NSW, South Australia and Tasmania

Annual Report 2011 17 2011 Highlights Student Staff experiences experiences

Study tour opportunity Staff undertaking

A most rewarding outcome for 2011 was the opportunity to send International Skills students overseas to broaden their experiences. Five students Scholarship (ISS) travelled to the Netherlands to undertake a research visit titled: George Yue of the Automotive Department Controlled Environment Horticulture – Developing Skills in Sustainable was an ISS fellow for 2011 undertaking a Practice. The visit was funded by DEEWR and included being hosted skills development project in China, studying by internationally recognised companies including Priva, De Lier, opportunities for students and graduates who Practical Training Centre, Ede, KWR Water, and World Water Academy may wish to work in the China in the automotive who shared the latest technologies and practices with our students. business management field. International structure Foundation staff workplace learning honoured

A number of 2011 children’s services students undertook a very In 2011 a group of over 40 staff came together successful practical placement extension to enhance their studies and explored how the Institute should recognise in China. Seven students took advantage of a partnership with ICRO staff service as well as develop a framework and the Qingdao Kindergarten in China to undertake a placement of for reward and recognition going forward. A three months. The students lived and worked in Qingdao, sharing in ‘one off’ recognition event for staff who were the Chinese culture with families. They were able to share with the foundation employees of Chisholm Institute, Kindergarten Australian early childhood practices and returned with was held in August. The Foundation Employee a much greater knowledge of the Chinese culture and education Award celebrated employment service at system. Chisholm Institute, which came into existence on Wednesday 1 July, 1998. As well as Southern University Games acknowledging the contribution and service that ​Students from Chisholm’s Diploma of Sport and Recreation and those staff had at the predecessor Institute’s Diploma of Sport Development competed in the Southern University as well, such as Casey (Dandenong), Peninsula Games, putting in a strong performance in the basketball, netball and (Frankston) and Barton (Moorabbin). 2012 will see tennis competitions. formal service recognition events being held to recognise staff with service in key milestones. The games were held in Geelong with over 1,600 students representing 14 different institutions across 15 different sports. Over 2,000 people were involved in the Games.

Chisholm’s teams were selected from only 29 students and competed against the might of the big universities who conducted selection trials from thousands of students. Given those circumstances, Chisholm performed admirably, winning games in all sports, and being very competitive in others.

18 Chisholm Institute New developments

Chisholm Launch of myJobs brand Chisholm’s Learner and Community Engagement department successfully launched its new jobs initiative at In 2011, Chisholm’s marketing Frankston. The new careers and employment website, myJobs, was unveiled at Bunurong Restaurant and was and communication department attended by many job network providers, employers and current and past students. Students can access full- began the process of revitalising time, part-time, apprenticeship and traineeship employment opportunities, with employers able to register their the Institute’s brand. Extensive positions; career resources and upcoming careers expos, and employment and industry events. market research and consultation within the organisation led to the development of a new position within the market and a refresh of all internal and external communication. Chisholm will launch the brand in 2012 with major updates to the Institute website and intranet site. Information matters

A focus in 2011 was to develop a new internal communications framework with the emphasis on listening, dialogue, giving and receiving feedback and taking responsibility for follow up and action. The result was I matters. This new internal communications strategy aims to build new ways of communication with an emphasis on interaction, with opportunities to discuss the impact of government policy, track Institute performance, share effective practices and to collaborate in developing the cultural changes required to implement The Chisholm Way. The I matters framework, myJobs launch: Geoff Shaw MP, Member for Frankston, Chisholm’s launched in July 2011, is driven by Geoff Cousins, Chris Wierzbowski and Chisholm’s Matthew Posetti staff ambassadors, managers and leaders across the Institute and is key to ensuring effective and transparent communication is a feature of Chisholm going forward.

Annual Report 2011 19 2011 Highlights Giving to our communities

Glen Davidson, Course Leader, Bachelor of Accounting

Social inclusion partnership Using skills for a good cause

Chisholm and Wallara Australia, a leading provider of support services Chisholm hospitality staff and students provided front of house and to adults with a disability in Melbourne, announced their partnership back of house service to Supported Places Victoria (formerly Vic aimed at making a real difference to social inclusion. The inspiration for Urban) in staging the 2011 Food and Wine Festival event for over 600 the partnership was the desire to build stronger pathways for young patrons hosted at the Dandenong Market. adults with disabilities into mainstream adult training and to create a Hair and beauty students and staff at Chisholm contributed to the sustainable program to drive social inclusion for people with disabilities. Shave for Cure – Leukaemia Foundation, participated in key fashion The key components of the partnership included: young adults from shows to support the Breast Cancer Awareness Campaign and Wallara’s Life Options program partnered Chisholm for a jointly run instigated fundraising events that contributed to supporting grants program in the Certificate I in Vocational Preparation; the production and scholarships for the Caroline Chisholm Education Fund. of a performance for International Day of People with a Disability at Wallara’s Annual Report to the Community; our Berwick TEC students (landscape and building) built a sensory garden at Wallara and through the in partnership valuable workplace experience was available for Chisholm students studying in the welfare and disability field.

20 Chisholm Institute 2011 Statistical Overview

Student Enrolments 2 011 2010 Government Funded Accredited Programs 17,986 18,184 Fee for Service Programs 24,110 27,469 (Less) Student enrolments in both Government Accredited Programs and Fee for Service Programs (1,151) (1,965)

Total Net Student Enrolments 40,945 43,688

Student Contact Hour Delivery 2 011 2010 Government Funded Accredited Programs 7,242,723 7,043,783 Fee For Service Programs 3,951,630 4,695,880 Total Student Contact Hour Delivery 11,194,353 11,739,663

Student Enrolments by Age 2 011 2010

Student Student Age Group Enrolments Per cent Enrolments Per cent Under 15 182 0.4% 67 0.2% 15 to 19 11,279 27.5% 10,900 24.9% 20 to 24 7,986 19.5% 9,539 21.8% 25 to 39 10,365 25.3% 11,280 25.8% 40 to 64 10,796 26.4% 11,550 26.4% 65 plus 334 0.8% 346 0.8% Not Stated 3 0.0% 6 0.0% Total 40,945 100.0% 43,688 100.0%

Student Enrolments by Gender 2 011 2010 Student Student Gender Enrolments Per cent Enrolments Per cent Female 16,128 39.4% 17,147 39.2% Male 24,815 60.6% 26,539 60.7% Not stated 2 0.0% 2 0.0% Total 40,945 100.0% 43,688 100.0%

Annual Report 2011 21 2011 Statistical Overview

Course Enrolments and Student Contact Hours by Campus

2 011 2010 Student Student Course Contact Course Contact Campus Enrolments* Per cent Hours Per cent Enrolments* Per cent Hours Per cent Frankston 14,536 25.5% 3,389,518 30.3% 14,859 25.7% 3,367,425 28.7% Dandenong 14,744 25.9% 3,136,328 28.0% 17,198 29.7% 3,615,039 30.8% Off Shore Delivery 5,493 9.6% 1,540,626 13.8% 6,715 11.6% 1,893,031 16.1% Berwick 4,091 7.2% 1,083,099 9.7% 4,119 7.1% 1,198,745 10.2% Workplace 12,642 22.2% 891,380 8.0% 10,041 17.4% 557,530 4.7% Cranbourne 2,246 3.9% 489,692 4.4% 2,165 3.7% 498,270 4.2% Berwick TEC 791 1.4% 307,199 2.7% 431 0.7% 259,351 2.2% Mornington 1,252 2.2% 244,733 2.2% 1,057 1.8% 213,845 1.8% Peninsula Bass Coast 623 1.1% 90,392 0.8% 788 1.4% 126,211 1.1% Online 506 0.9% 21,386 0.2% 458 0.8% 10,216 0.1% Total 56,924 100.0% 11,194,353 100.0% 57,831 100.0% 11,739,663 100.0%

* Individual students can choose to enrol in multiple courses

Financial Measures 2011 2010 Measure $’000 $’000 Operating Surplus for the Year • Funded Operations (excludes capital grants, loss on disposal of assets, depreciation and expenditure using capital grants) 7,452 5,611 • Total Operations 6,402 21,802 Total Revenue (includes proceeds from sale of assets) 136,287 154,158 Total Operating Revenue (total revenue less capital) 128,699 128,800 Net Assets Value 219,155 212,344 Working Capital (adjusted for liabilities payable after 12 months) 18,080 17,139

Sources of Chisholm Operating Revenue* % Total Operating Revenue 2 011 % 2010 % Government funding from the Victorian Skills Commission 69.4 66.8 Fee-for-service, commercially priced programs and services 19.4 22.2 Student fee and charges 8.7 8.2 Other, including investment interest, donations, trading activities and miscellaneous revenues 2.5 2.8

* Commonwealth and State Government capital grants totalling $7.57 million in 2011and $25.30 million in 2010 are not included.

22 Chisholm Institute 2011 Board and Committees

Board Organisational Chart Responsible Minister The following chart details the organisational arrangements and The Hon. Peter Hall accountabilities of the Board and the Board Committees for 2011. MP, Minister for Higher Education and Skills

The Board of Chisholm Institute BOARD SECRETARY of TAFE Mr David Thorsen Mr David Willersdorf, President

StrAtegic Audit and Risk Resource DEVELOPMENT Management Management and MONITORING Committee Committee COMMITTEE

Committee Membership Committee Membership Committee Membership Mr Lyndon Joss (Chairperson) Mr Robert Comelli (Chairperson) Mr David Eynon (Chairperson) Mr David Willersdorf Mr David Willersdorf Mr David Willersdorf Ms Tracey Davies Mrs Maria Peters Prof Wendy Cross Mr Michael Said Mr Greg Hunt Mr Peter Malone Mr Mel Pecan Mr Rob Johnson Mrs Maria Peters Executive Officer Mr David Muir Mr David Edgar Mr John Buckler Executive Officer Executive Officer Mr Grant Radford Mr Peter Harrison

Board and Institute Committees – Relationships

THE BOARD OF CHISHOLM INSTITUTE

Resource StrAtegic MEMBERSHIP DEVELOPMENT COMMITTEE Audit and Risk Management Committee and MONITORING Management COMMITTEE

Board Committees Board Committee REMUNERATION COMMITTEE

CHIEF EXECUTIVE OFFICER

CHISHOLM DIRECTORS GROUP (CDG)

ODC/Centre/ OCCUPATIONAL QUALITY DIvisional HEALTH BOARD OF STUDIES MANAGEMENT ICT STEERING and SAFETY COMMITTEE COMMITTEES COMMITTEE Institue Committees Institue

Functional relationship Monitoring relationship

Annual Report 2011 23 2011 Board Committee Profiles

David Willersdorf Meg Collins-Hughes Robert Comelli President of the Board Ministerial Appointee Ministerial Appointee Ministerial Appointee – Industry Member BA, BEd, GradDip Management, Trained B Bus,Dip Ed Special Teacher’s Certificate, Trained Diploma of Commerce, Accountancy Robert Comelli is the CEO of the Association Certificate, Associate Diploma in Industrial Secondary Teacher’s Certificate, MAICD. for Accounting Technicians (Australia) Accounting Meg began her career as a teacher within Ltd. (AAT Australia). Robert has held David is Group General Manager/Director/ the technical and TAFE systems. Then for this role since July 2007. Robert has a Company Secretary for the Grenda 19 years she worked in industry, first with strong commercial finance background Corporation Pty Ltd with over 20 years Mobil Oil at the Altona Refinery, then as including significant merger and acquisition experience in this business. He was an National Training and Development Manager work activities. Robert has held senior inaugural member of the Bayside Business with Cadbury Schweppes. Recently, Meg management and CEO positions in a variety Board and a past Treasurer and President retired from the position of Development of private sector organisations spanning of Auburn South Primary School. David was and Training Manager (Australasia) with over 25 years. Over his career, he has held elected President of the Board of Chisholm Pilkington after nine years of service. directorships in several public and private Institute in November 2007 with effect Meg has extensive experience in developing companies, including Groups with as many from 1 January 2008. He is a member of all learning programs for management and as 20 subsidiaries and turnovers in excess of Chisholm Institute Board Committees and leadership, monitoring career development, $500 million. was the chair of the Resource Management and fostering the growth and capability Committee in 2007. David is a member of the Robert is a Fellow of CPA Australia, Fellow within an organisation. Meg is a member newly created Committee for Dandenong of the National Institute of Accountants of the Australian Institute of Company established December 2010. and Fellow of the Association of Accounting Directors. Technicians. He is a Fellow of the Certified Practising Meg was appointed a member of the Accountants of Australia Association Robert is the chair of the Resource Victorian TAFE Association (VTA) and a member of the Australian Institute Management Committee and Remuneration Administrative Committee and an active of Management. David’s key areas of Committee. participant in the VTA’s processes. knowledge, skills and experience include financial management, accounting and risk As well as a Board member at Chisholm, she management, statutory and regulatory is also chair of the Strategic Development compliance. and Monitoring Committee and a trustee/ chair of the Caroline Chisholm Education As President of the Board, David will continue Foundation. as a member of all Board Committees.

24 Chisholm Institute Prof Wendy Cross Tracey Davies David Edgar Ministerial Appointee – Ministerial Appointee – Ministerial Appointee – Industry Member Industry Member Industry Member RN, RPN, B.App. Sc. (Adv Nsg), MEd., PhD., LLB (University of Melbourne), Strategic Development and Monitoring FRCNA, FACMHN*, MAICD B.Comm (University of Melbourne) Committee Co-opted Member Professor Wendy Cross’ career has spanned Tracey is a Principal at Davies Lawyers having Advanced Diploma in Business Management many years in nursing, nursing research and been a Solicitor for 23 years. Tracey has Certificate IV in Workplace Assessment and nurse education. She has contributed to represented government departments and Training professional, managerial and administrative instrumentalities, banks, financial institutions, Certificate in General Construction elements of nursing over that time. Wendy liquidators, businesses, individuals and (Horticulture – Landscape) has been awarded numerous research accounting firms. She currently practices David is currently the General Manager of and teaching grants. She has extensive in the areas of employment law, industrial Southern Suburbs Group Training Company experience in a range of nursing and relations and commercial litigation. (SSGT) based in Melbourne. David has 15 management activities. Tracey is a member of the Law Institute years experience in the vocational education, Since April 2002, she was employed in a of Victoria, Law Institute of Victoria employment and training sector with eight of senior executive role at Southern Health and Practice Sections – Litigation Lawyers and those years in senior management in group her roles encompassed practice development, Administrative Law & Human Rights and training organisations, including management clinical governance, policy and procedure Industrial Relations Society of Victoria. of a registered training organisation and development, performance management and Australian Apprenticeship Centre business. Tracey is a member of the Audit and Risk appraisal, workforce planning and numerous Management Committee. During David’s career he has worked in both other activities. regional and metropolitan communities In February 2007, she joined Monash across Victoria for extended periods. In his University, School of Nursing and Midwifery current position David is the senior executive, with a focus on mental health nursing public officer and responsible for all aspects research and has since been appointed as associated with the daily running of the Head, School of Nursing and Midwifery. business, including financial, strategic and operational management including reporting to Wendy is a member of the Strategic a board of management. Development and Monitoring Committee and Chairs the Higher Education Academic Affairs Since 2001 David has actively participated on Committee. multiple boards of management including local learning employment networks, education networks, Career Advice Australia consortiums and fulfilled office bearer positions of Treasurer and Chairperson. David is currently the Treasurer and Vice Chairperson of the Bayside Glen Eira Kingston Local Learning Employment Network (BGKLLEN). Annual Report 2011 25 2011 Board Committee Profiles

David Eynon Greg Hunt Robert Johnson Co-opted Member Co-opted Member Resource Management BEc (Monash), MA (Melbourne), FAICD Bachelor of Science (Hons),Dip Ed, Dip Bus Co-opted Member (Frontline Management) LLB (Monash University) David is the Executive Director of Air Conditioning and Mechanical Contractors Greg is the Executive Officer of the South Rob has a property and development Association (AMCA). AMCA is a federation East Councils Climate Change Alliance, a background, he has significant experience in of employer and industry associations not for profit organisation that carries out large private and public sector infrastructure representing the commercial and industrial climate change response projects through projects spanning over 25 years. His roles relations interests of companies that are the local governments of the southeast. have included general manager, project primarily engaged in the design, installation and director, specialist consulting advice to both Previously, Greg was involved in science servicing of air conditioning and mechanical the government and the private sector, and environmental studies in secondary services plant in large commercial buildings. litigation and claims management and public/ schools before becoming a bureaucrat in private partnerships. David’s primary responsibility is to the board the education department where he was of directors for service delivery in the state involved in state, national and international He has expertise in project procurement, of Victoria and policy development for the environmental education projects. project finance, delivery management, National Council. property development, construction law, and Greg was Principal at the Zoo Education significant industry knowledge. David represents the Association to a wide Service and then Education Manager at range of organisations including, ministers Melbourne Museum. He left formal education of state, government departments, industry to work as an environmentalist to establish policy forums. Waterkeepers Australia. He maintains his interests in education as President of the Box David has extensive experience in public Hill High School Council and with continuing policy development in connection with skills activity in the Australian Association for training, industrial relations and energy Environmental Education. Greg is also a efficiency. fellow of the Victorian Association for Current directorships include: Environmental Education.

• Australian Construction Industry Forum Greg is a member of the Resource Ltd. Management Committee. • ARBS exhibitions Ltd. • Joint Plumbing Industry Training Fund Ltd (2006 – current) • Redundancy Central Payments Fund

David is a member of the Strategic Development and Monitoring Committee.

26 Chisholm Institute Lyndon Joss Peter Malone Mel Pecen Ministerial Appointee – Lieutenant Commander, Audit and Risk Management Industry Member RAN rtd. Committee Co-opted Member Fellowship Diploma in Metallurgy, RMIT Elected Staff Member CPA, MBA Post Graduate Diploma in Business Studies, MEd Studies; BAppSc; GradDip Education; Mel is currently the Group Business Manager Swinburne Institute Grad Cert Computing; Postgraduate DipEd of Grenda Transit, a large bus operation Post Graduate Diploma in Quality Technology, (TESOL); Grad Cert Indonesian Language. based in Melbourne. During his career Mel RMIT Before joining the TAFE sector, Peter served has held various senior accounting and Kepner Traegar Management Program as an officer in the Royal Australian Navy. Bywater Lead Assessor – Quality finance positions in the transport industry, In the later part of his service, he undertook Chartered Professional Engineer (Mechanical) including most recently finance manager and (CPEng) a number of duties such as Formation company secretary, in Western Australia. His Associate Fellow Australian Institute of Ground Safety Officer at RAAF Williams responsibilities during his career have included Management and Training Development Manager at contracts negotiation and management, Member Australian Institute of Company HMAS Cerberus, which involved safety and financial management, quality systems Directors educational auditing and risk management. compliance at industry level and ISO series, Graduate Member Australian Institute of He also performed duties as an Indonesian marketing and business systems. Mel is also a Company Directors linguist in Australia and overseas. In the director on the board of a large independent Mentor and Business Plan Coach to SME’s TAFE sector he has been manager of a private girls college in Melbourne. District Councillor – Rotary International – multimedia development centre, a curriculum District 9800 officer and a project manager for a number Lyndon has over 35 years Australian and of major materials development projects. International experience in management Currently, Peter works in Chisholm’s Centre and senior management positions in the for Integrated Engineering and Science. engineering and manufacturing industries. He has a strong commitment to the regional Peter is a member of the Strategic development of the engineering industries Development and Monitoring Committee. through his role as President of South East Melbourne Manufacturers Alliance (SEMMA) and Facilitator South East Networks.

Lyndon is the chair of the Audit and Risk Management Committee.

Annual Report 2011 27 2011 Board Committee Profiles

Michael F. Said Maria Peters David Muir Audit and Risk Management Chisholm Institute Chief Elected Student Member Committee Co-opted Member Executive Officer Term: 1 April 2011 to 31 March 2012 CPA Ongoing (Ex-officio) Appointment David Muir was a Chisholm student who was In the course of Michael’s career, he has held CEO of Chisholm Institute since 2010, an elected member to the Board. executive positions at the State Insurance Maria’s previous roles was as Deputy CEO Office where he was General Manager of and Executive Director Programs for the its largest Insurance Division, and General Institute. Maria has had extensive experience Manager of Finance and Business Support. in education both locally and internationally. She has held a range of management In 1993, he joined the Victorian Auditor positions and has had significant experience General’s Office as director responsible for in delivery performance, professional all financial audits and special reviews in development and tertiary education the Department of Education, including across a range of industry sectors where universities and institutes of TAFE, she continues to be actively involved in Department of Justice, and Police and respective VET related industry networks Emergency Services. and organisations. Michael retired in November 1999 and since As Institute Chief Executive Officer, Maria that time has developed a consultancy Peters is an ongoing (ex-officio) member of specialising in governance. He is chairman of the Board. Maria is a member of the Board four audit committees in local government Executive, the Resource Management and a member of another audit committee in Committee and the Strategic Development and local government. Monitoring Committee. She is also a Trustee of the Caroline Chisholm Education Foundation.

28 Chisholm Institute Chisholm Directors Group

The Chisholm Directors Group’s focus is strategic leadership and business development, with day-to-day operations largely managed by middle management under a policy and procedural framework established by the Chisholm Directors Group under the Board’s delegation framework.

Maria Peters Peter Harrison Chief Executive Officer Deputy CEO and Executive Maria Peters was appointed Director Director Programs and CEO of Chisholm in April 2011. Peter Harrison, B Ed, Grad Cert, Cert in Prior to this, Maria was Deputy CEO Welfare is responsible for the educational and Executive Director Programs leadership, planning and strategic for the Institute. While at Chisholm, direction of the Institute’s core business Maria has extensive experience in across six teaching centres, including the driving educational leadership and Berwick Technical Education Centre and planning and strategic direction for the the Institute’s two regional campuses at Institute. Maria’s highlights include the Bass Coast and Mornington Peninsula. development and rollout of the Institute’s He also has carriage of strategic Berwick Technical Education Centre in planning, institute delivery performance, 2009 as well as driving the Institute’s professional development, e-learning first tertiary offerings in community strategies, tertiary education and mental health, alcohol and other drugs, development and business development. delivered for the first time in 2011. Peter has had more than 20 years experience in both the secondary and Maria has had extensive experience in vocational education sectors holding education both locally and internationally. a range of senior management and She has held a range of management leadership positions. He has been actively positions and has had significant involved with community groups, local experience in delivery performance, and state government initiatives and professional development and tertiary reforms with a primary focus on the education across a range of industry successful engagement and pathways sectors where she continues to be development for disadvantaged and actively involved in respective VET related disengaged young people. industry networks and organisations.

Annual Report 2011 29 Chisholm Directors Group

John Buckler Anne Cosentino Leanne Jenkins CIO and Director, Technology Director, Centre for Vocational Director, Centre for Services and Learning Information Pathways and Arts Industries Services Anne Cosentino, BA, Dip.Ed, has extensive Leanne Jenkins worked extensively in John Buckler MBA, BSc (Hons), PGDipEd, experience in the field of education, the hair and beauty industry before joined Chisholm in December 2011 having spanning both secondary and adult sectors. commencing her career with Chisholm in been Director of IT at Lincoln University, Appointed Director, Centre for Vocational 1988. In 1995, Leanne was appointed to Christchurch, New Zealand. Prior to moving Pathways in 2008, Anne brought to the the position of department manager and into an IT career in 1992 John taught in position significant experience in securing since 2001 also managed the sport and high schools in the UK and Bermuda. John’s and managing government tenders; recreation program area. In 2008 Leanne career in IT has been in the electrical and involvement in local and national networks was appointed as Director, Centre for plumbing wholesale, food retail and tertiary for general education and access programs; Services and Arts Industries; a new centre education industries. John enjoys the and school, community and industry links. which brings hospitality, food processing, vibrancy, complexity and diversity of the She strategically leads her centre in the arts, hair and beauty together. Leanne has a tertiary education industry – he has been an development and implementation of particular interest in working with industry active member of the Council of Australian foundation and pathway programs for its and has wide experience in providing Universities Directors of IT and has served on diverse student cohort. training and consultancy to a diverse range the executive of the Australian Peoplesoft of industry sectors. Higher Education Users Group. He focuses on ensuring that technology is deployed in the context of teaching, learning, service and administrative activities. He also enjoys programme management and has managed large enterprise projects outside of the IT field including all aspects of the merger of a polytechnic and a university.

30 Chisholm Institute Andrew Kong Madelyn Lettieri Christine Louey Director, Centre for Advanced Director, Centre for Health, Director, International Division Business Services Community and Early Christine Louey, BBus (Accounting), GradDip Childhood Education Andrew Kong, AFAIM, M Ed Admin, M Prof St, Ed, Diploma FMI, Cert IV in TESOL, CPA Grad Dip Ed, BA, Dip Trg Dev. has enjoyed a Madelyn Lettieri, Dip T, Dip FLM, Cert IV was appointed to this position on 1 July career as a leader in education and training WTA and GradCertEdMgt, Professional 2007. Prior to this appointment, Christine in industry, government and the Victorian Certification – Leadership and Management held the position of Department Manager, TAFE system. He has worked as the training – Chair Academy (USA) was appointed Business Services. Christine joined Chisholm and development manager at Tooheys, Lion Director in 2008. Madelyn has extensive in 2003 and previously held management Nathan. He was a commissioned officer experience in teaching and management positions in international projects, business within the Australian Regular Army and held within the TAFE sector and has managed and management and the CBT Accounting management positions at East Gippsland a diverse portfolio of teaching programs, Resources Project at Swinburne University’s Institute of TAFE and Box Hill Institute before including innovative models of small business TAFE Division and at Eastern TAFE. Christine joining Chisholm Institute in June 2008. vocational training centres. Madelyn also currently is responsible for commercially has experience in course design and based international development including Andrew’s career has seen him involved in development from certificate I level through international projects, international student implementing the education and training to bachelor and graduate certificate levels recruitment and English language programs strategies within change management within the VET sector. She has delivered for international students. In partnership initiatives across industrial, military and many conference papers and workshops in with centres and divisions she coordinates educational settings. the fields of art and disability in practice, and supports the strategic development of health and wellbeing and community Chisholm’s international profile. partnerships. Madelyn has also been part of workforce development projects and applied research activity.

Annual Report 2011 31 Chisholm Directors Group

John McKay Malcolm Grant Radford Director, Centre for Integrated Macpherson Director, Corporate Services Engineering and Science Director, Centre for Division John McKay, Grad Dip Ed Admin, BEE, DipEd Sustainable Technologies Grant Radford, BCom, CPA, joined Chisholm has extensive experience in teaching Malcolm Macpherson BSc, G Dip Recreation, G as Director, Corporate Services in April and senior management within the TAFE Dip Ed joined Chisholm in 2007 as Manager of 2008. Grant has over 15 years experience sector. John manages delivery over a Manufacturing Engineering and Logistics and in finance and infrastructure. Grant has range of industries that includes electrical in 2008 moved to the role of Director, Centre held a number of positions in Australia’s and electronics engineering, computer for Sustainable Technologies. Malcolm’s early Defence Force which included assisting with engineering and applied science and career was in a variety of roles in industrial the development and management of the manufacturing engineering and logistics. This chemistry and community-based recreation Defence Material Organisation’s statutory scope of operations also includes Australia management. Malcolm managed a diverse financial statements, monthly budget wide and international project delivery portfolio of teaching centres during his 20 analysis and audit coordination. Grant has as well as the recently developed higher years at Bendigo Regional Institute of TAFE also operated as a senior manager with education profile. John maintains close links and has developed specialist expertise and Victoria’s Department of Education and with industry and key industry representative interest in work-based training programs Training where he played a major role in the bodies and has served on various boards for industrial clients. A commitment to implementation of the 2006 Skill Statement of management of organisations including the professional skilling of VET staff was – Maintaining the Advantage. Immediately group training and LLEN. John was appointed enhanced by two secondments to the TAFE prior to joining Chisholm, Grant held a Director, Centre for Integrated Engineering Development Centre. senior advisor position with the Victorian and Science in 2008. Department of Treasury and Finance.

32 Chisholm Institute David Thorsen Director, Organisational Culture and Communications Division David Thorsen, BBus, GradDip Labour Law, joined Chisholm in June 2005 as HR Development Manager. He has over 15 years experience in various education environments. Prior to Chisholm, David was Human Resources Manager, Adult Multicultural Education Services (AMES), and also worked in a range of human resource roles at La Trobe University. David was appointed as Director, Organisational Culture and Communications in 2008. David’s role encompasses responsibility for human resources, marketing, learner and community engagement, client services as well as performing the role of Chisholm’s Board Secretary.

Annual Report 2011 33 Governance Report Corporate Governance: Chisholm’s Solid Foundation

The Board of Chisholm Institute Corporate governance is central to Chisholm’s capacity to operate as a of Technical and Further premier vocational education provider and receives on-going scrutiny Education (“The Board”) is from the Board and its committees. The Board considers that its responsible to the Minister governance framework provides a competitive advantage to Chisholm and other stakeholders for the by effectively discharging its ethical and stewardship obligations and strategic oversight and guidance by facilitating effective and timely decision-making processes. of Chisholm as set out in the In relation to the governance framework, the Board seeks to: Education and Training Reform Act 2006, its Constitution under • Embrace both government and non-government sector best- this Act and the Board’s Charter. practice approaches The Board recognises that its • Recognise and adopt, as early as possible, any new overriding responsibility is to act recommendations relating to Board operations honestly, fairly and diligently • Actively discuss, monitor and review corporate governance issues in meeting the aspirations and best-practice developments of students, staff and the • Develop annual performance goals and actions to support communities in which Chisholm achievement of these goals and operates and the obligations • Critically analyse its performance periodically. to the Minister and other stakeholders.

34 Chisholm Institute Board Charter Risk Management and Legislative Compliance (12) Approve and oversee the Institute’s Risk Management Plan, The Board’s Charter sets out the Board’s purpose, powers and specific including identification of assessment of the level of risk, the responsibilities. management of risk and assurance that risk is being regularly The Board’s responsibilities are to: monitored Leadership, Planning and Direction (13) Ensure that the Institute is meeting its statutory and regulatory obligations and that ethical standards are being (1) Set the Institute’s strategic directions, Strategic Plan, maintained associated plans (14) Ensure the Institute operates within a clear and regularly (2) Select and appoint the Chief Executive Officer (CEO), reviewed policy framework determine the terms and conditions of the appointment and evaluate the performance annually (15) Appoint the chairpersons of Board Committees

(3) Establish a clear set of delegations to the CEO to facilitate (16) On an annual basis evaluate the performances of all Board the operation of the Institute Committees and Working Groups to ensure that each operates in accordance with its approved terms of reference (4) Utilise its collective external networks, experience in the business environment and knowledge of regional issues (17) Determine membership and the terms of reference for each to scan the external environment, assist the Institute in Board Committee and Board Working Group identifying threats and opportunities and promote the (18) Receive reports from the Board standing committees and any Institute in the region ad hoc Board committees, and consider, determine or ratify (5) Ensure there is a succession plan in place in respect of the their recommendations as appropriate CEO. (19) Recommend to the minister appointments to the Board in Financial Management and Performance accordance with clause 5(a) of the Board’s Constitution Monitoring (20) Select and appoint coopted members to the Board in (6) Enter into and monitor the triennial Performance Agreement accordance with clause 5(e) of the Board’s Constitution and annual Performance Agreement Variations with the (21) Ensure that there are staff and student members elected Victorian Skills Commission to the Board in accordance with clauses 5(b) and 5(c) of the (7) Approve the Institute’s Annual Budget, Financial Statements Board’s Constitution and Annual Report (22) Oversee the appointment and remuneration policies and (8) Appoint the Institute’s internal auditor on an annual basis performance management processes for all other Institute (9) Monitor the Institute’s achievements of its goals and targets executives against agreed key performance indicators on both a monthly (23) Establish performance goals for the Board and evaluate its and an annual basis performance annually. (10) Approve capital works plans and programs

(11) Establish performance goals for the Board and evaluate the Institute’s performance annually.

Annual Report 2011 35 Composition of the Board • A report by the Chief Finance and Accounting Officer on monthly financial performances, financial risks and forecasts since the last The Board comprises 12 members:* meeting • Seven members appointed by the responsible minister based on • A report by the CEO Board recommendations* • As required, consideration of any other matters subject to the • Two members co-opted by the Board* Board’s Charter not otherwise considered and reported through a • One staff member elected by staff Board Committee and • One student member elected by students • Other matters raised by Board members in accordance with Board • The Institute Chief Executive Officer. meeting procedures. * There are currently 2 vacancies. Criteria for Board Membership Board Meetings For Board members recommended for appointment by the minister or co-opted by the Board, the Board will consider skills and experience The Board met nine times in 2011 with an additional two planning and in light of the strategic directions, skills required to enhance the strategy workshop conducted in May and September. Board’s performance, and current composition and gender balance Typically the Board’s agenda will include: of the Board. Specialist skills in education, legal, finance, community development, sustainability and communications and other • Recording of attendances and apologies professional skills including senior industry experience are valued. • Recording of actual or potential conflicts of interest in regard to Board members are also required to demonstrate: any meeting agenda items • Personal integrity and honesty • Minutes of the previous meeting • Alignment with the Institute’s visions and values • Outstanding issues raised by board members at previous meetings • A willingness to attend and participate constructively in Board and Board Committee processes. • Board correspondence • Reports from the Chairs of Board Committees that have met since The Board seeks prospective Board members through its ongoing the last meeting liaisons with industry, local government, regional educational providers • Review of the minutes of the Board Committee reports and and community group as well as expressions of interest process recommendations since the last meeting conducted by the Minister.

36 Chisholm Institute Risk Management

Chisholm has established a comprehensive risk management plan The following Certification Statement is provided in accordance consistent with the Australian/New Zealand Risk Management Standard. with Standing Direction 4.5.5 from the Minister for Finance and in Internal control systems enable the Board and executive management to accordance with a Resolution of the Board dated 29 February 2012 understand, manage and satisfactorily control risk exposures.

The new plan that was endorsed in 2011 identifies high-level material Risk Management risks that could potentially hinder or prevent Chisholm achieving its Certification Statement key objectives and performance expectations. I, Maria Peters, certify that executive to understand, The Board is responsible for approving the Annual Risk Management as at the 31st December manage and satisfactorily Plan and related strategies, monitoring and assessing the 2011, Chisholm Institute of control risk exposures in implementation and effectiveness of risk management strategies and TAFE, has risk management significant respects. The determining appropriate corrective measures. processes in place broadly Audit Finance and Risk The Audit and Risk Management Committee is responsible for consistent with the Committee verifies this providing advice to the Board on the development and operation of Australian/New Zealand Risk assurance and that the risk the Annual Risk Management Plan. The Internal Audit Plan is aligned Management Standard (or profile of the Agency has to risk issues identified in the Annual Risk Management Plan. equivalent standard) and been critically reviewed an internal control system within the last 12 months. The Resource Management Committee specifically monitors risks is in place that enables the associated with the achievement of targets specified in the Annual Budget Plan.

The total numbers of risks monitored by the Board in 2011 were as follows: Maria Peters Level of Risk Risk Exposures subject to Chief Executive Officer Exposure monitoring by the Board in 2011 Chisholm Institute of TAFE Extreme 2 29 February 2012 High 4 Dandenong Medium 9 Total 15

Annual Report 2011 37 Conflict of Interest Board Committees The Board’s meeting procedures require Board members to The Board carries out duties by delegating certain responsibilities to Board Committees. declare any actual or potential The committees make decisions and recommendations to the Board on the matters conflicts of interest in relation delegated to them. to any item to be discussed at a Board or Board committee Audit and Risk Management Strategic Development and meeting. As appropriate, Committee Monitoring Committee members are required to leave The Committee assists in the Board The Committee assists the Board the meeting, not enter into governance framework with the through monitoring: discussions or refrain from voting monitoring of: • The development of the Strategic where an actual or potential • The preparation of Chisholm’s financial Framework and annual strategic plans conflict of interest exists. statements • Annual assessment of the board In addition Board Regulation 08: • The effectiveness of the internal performance against stated goals/ Member and Board Committee control framework activities Declarations require each Board • The operation of an effective internal • The implications of research and policy and Board Committee member to and external audit program changes in strategic directions complete an annual declaration • Effective management of business • Learning development strategies in relation to: risks • Workforce development strategies • Any conflict of interest or • Business continuity process • Achievements against the annual other declaration in respect • Effective ethical framework and strategic plans of duties as a member of the • The Chisholm fraud control program. • Best-practice arrangements in Chisholm Institute of TAFE corporate governance and updating of Board Under the Committee’s Charter, all the governance manual and • Any financial interest in any members must be independent members. • Program delivery. purchasing or tendering processes undertaken by the Resource Remuneration Institute Management Committee and Membership Committee • Any immediate relatives, The Committee assists the Board The Committee is responsible for friends or acquaintances through the monitoring of: with a financial interest recommending new appointments to the • Financial strategies in the purchasing and Board and Committees, establishing and • Risks associated with the tendering processes of the reviewing the Executive remuneration achievement of budget plan targets Institute and policy against the Government guidelines, • Performance measures approving performance payments to • Any personal bias, obligation the CEO, approve succession planning or inclination, which would • Achievements against annual budget requirements for the position of CEO and in any way affect decisions plans oversee remuneration with respect to or influence other members • Information and communication Board members. in relation to duties as a technologies strategies and member of the Chisholm developments Institute of TAFE Board. • Buildings capital works and maintenance programs Board members are required to provide advice if circumstances • Major expenditures and contracts detailed in the declarations (exceeding $100,000) change. • Legislative change and influence • Overseas travel and • Student fees and charges.

38 Chisholm Institute Board and Committee Meetings

Board Strategic Chisholm (including Audit and Risk Resource Development Planning ad-hoc Management Management and Monitoring Workshop meeting) Committee Committee Committee (meeting days) A B A B A B A B A B Mr David Willersdorf 9 9 5 4 6 6 3 3 3 2 Ms Meg Collins-Hughes 6 3 3 0 3 1 Prof Wendy Cross 9 4 3 2 3 3 Mr Robert Comelli 9 8 6 6 3 1 Mr Lyndon Joss 9 8 5 4 3 3 Mr Peter Malone 9 8 3 2 3 3 Mr David Eynon 9 9 3 3 3 3 Ms Tracey Davies 9 6 5 5 3 3 Mr Greg Hunt 9 9 6 6 3 3 Mrs Maria Peters 9 9 4 3 6 5 3 3 3 3 Mr Leigh Grant 2 2 2 1 Mr David Muir 4 1 4 0 3 1 Mr Mel Pecen (1) N/A N/A 5 4 3 1 Mr Michael Said (1) N/A N/A 5 5 3 1 Mr David Edgar (1) N/A N/A 3 2 3 3 Mr Rob Johnson (1) N/A N/A 6 5 3 3

A: Indicates the number of meetings the member was eligible to attend B: Indicates the number of meetings that the member attended Note 1: Indicates co-opted members of Board Committees.

Board Member Professional Development

In 2011 at the commencement of the year the Board introduced a program of addressing strategic topics at meetings and planning workshops. Topics addressed in 2011 were:

• Risk Management Board Responsibility, Mette Shcepers, Nous Group • Tertiary Education Provision Plan for Outer South East Melbourne, Professor Kwong Lee Dow, Chair • Government perspective on the training market place and Chisholm’s role, Kym Peake, Deputy Secretary, Skills Victoria • Organisational Sustainability from a Financial Perspective, Grant Radford, Director, Corporate Services, Chisholm Institute • Aligning Business to Strategy – Commencing the Change Process, Maria Peters, CEO, Chisholm Institute • Skills for Prosperity a Road Map for Vocational Education & Training, Robyn Shreeve, CEO, Skilling Australia • Marketing Strategy, Kate Oxenbould, Marketing Manager, Chisholm Institute and • Chisholm Brand Strategy, Neil Cotton, The Lab.

All Board members have access to formal Governance training through the Australian Institute for Company Directors.

Annual Report 2011 39 Promotion of Ethical Standards

The Board is accountable to the responsible minister for the performance and ethical culture of Chisholm. The Board continually promotes the development of high ethical standards. The Chisholm Staff Code of Conduct

The Chisholm Staff Code of Conduct describes how staff should behave in many circumstances. It provides assistance to staff in resolving uncertainties and clearly sets outs Chisholm’s expectations of staff in day-to-day behaviours. The code is subject to annual review reported to the Audit and Risk Management Committee Purchasing and Statements of Internal and and is actively used in Chisholm’s Pecuniary Interest External Audit human resource management Board regulations prescribe strict standards for purchasing aligned Programs processes. In 2011 the code was to State Government Standards applicable to the Department of reviewed and updated. The Board appoints an Innovation, Industry and Regional Development. Under the Staff independent auditor with Chisholm Code of Conduct and Chisholm Purchasing procedures, all staff with responsibilities on conducting Values any purchasing, budget or financial management responsibilities an on-going audit of income are required to complete a Conflict of Interest/Pecuniary Interest and expenditure in accordance Chisholm’s vision, purpose and declaration. No shares are held by Chisholm senior officers as with Section 3.1.15(3) of the values are integral in shaping nominees or held beneficially in a statutory authority or subsidiary. Education and Training Reform the way in which the Institute Act 2006. The annual audit functions and forms the Fraud Control Program plan is subject to the approval cultural base of expected staff The Board through the Audit and Risk Management Committee of the Board and has a strong behaviour. The values have been manages an annual Fraud Control Program. alignment to the Board’s Annual designed through consultation Risk Management Plan and with staff and are directly Internal Control Framework Strategic Plan. The operation of relevant to the education setting the Audit Plan is monitored by Chisholm operates a comprehensive internal control framework covering in which Chisholm operates but the Board though the Board’s risk management and all aspects of budget, financial and asset also compliments the broader Audit and Risk Management management. The Chisholm CEO and Chief Financial and Accounting Victorian Public Sector values. Committee. All Board members and staff Officer make an annual declaration to the Board that states: must ensure that Chisholm’s Chisholm is also subject to vision, purpose and values are “The financial reports presented to, and prepared on behalf of an external audit conducted underpinned in everything they the Chisholm Institute of Technical and Further Education Board by the Victorian Auditor do in their roles associated with present fairly the financial conditions of Chisholm Institute of General’s Office in relation to TAFE and are founded on the basis of sound risk management, the preparation of the Annual Chisholm. internal compliance and control systems.” Report.

40 Chisholm Institute Social Responsibility Chisholm PLAYS A KEY ROLE

Chisholm recognises the important role it plays in the communities staff, including career transition training and manager assist in which it operates. Chisholm acknowledges that our demonstrated – Provision of health checks for staff in conjunction with social responsibility is a vital contributor to long-term business WorkHealth. 613 staff participated in this program. success, and community capability. As a Victorian Government • National Safe Work Week activities – over 376 entries were operation, Chisholm also plays a key role in the Victorian Government’s received over the course of the weeks activities from staff commitment to social responsibility. This commitment is reflected in: • Continued testing and enhancement of the Institute’s Business • Chisholm’s commitment to providing accessible programs meeting Continuity Plan, there were two desktop exercises carried out the learning needs and vocational aspirations of its students over the year, with a further one being run through consultants of • Chisholm’s commitment to safety, health and the environment in the Victorian Managed Insurance Agency (VMIA) all aspects and • Continuation of the Emergency Management Program, including • The operation of the Caroline Chisholm Education Foundation. training emergency response staff, first aiders, and conducting entire campus evacuation drills at each campus and Health, Safety and Wellbeing • Auditing of and continued implementation of Department OH&S Chisholm considers all workplace injuries to be preventable and Management Plans. ensures occupational health and safety is integrated into department Chisholm’s OH&S Management Program in conjunction with its Injury and campus operations. Chisholm’s OH&S policies and procedures Management Program, continues to work towards a reduction in assert individual responsibilities for the health and safety of staff staff injuries, workers compensation claims and WorkCover insurance and students. Health and safety issues identified through Chisholm’s premium whilst improving the health and welfare of staff at work. hazard management process are given the highest priority in expenditure considerations. WorkCover/Return to Work The Institute’s health and safety strategy aims to meet its legal and The number of staff injuries reported for the year totalled 42 which is ethical obligations and to create a harmonious, productive learning 11 fewer than the previous year. Student reported injuries were also and working environment, by providing a workplace free from risks to down, 97 for the year and 132 for the previous year. health and safety. The number of accepted WorkCover claims for 2011 totalled 14, Key strategies undertaken in 2011 were: six fewer than the previous year. Of these, seven were premium- • Health and well-being initiatives to improve staff health and sensitive, a decrease of eight from the previous year. fitness including: On average, the employees who were injured as a result of a – Institute wide staff flu vaccination program, 385 staff workplace incident had an average of 5 days lost which is better than participated the target of a maximum of ten days. – Active promotion of Employee Assistance Program to benefit

Annual Report 2011 41 Environmental Sustainability • Green purchasing • Built environment design The business of Chisholm Institute requires consumption of large • Transportation amounts of natural resources. Chisholm is committed to reducing its impact on the environment and in 2011 continued the works • Greenhouse gas emissions that commenced in 2007. This is demonstrated by the Institutes • Education for sustainability ResourceSmart Strategy which aligns with Government policy • Embedding of sustainability throughout our business. commitments: • Living Sustainably (2009) The targets set for 2011 were as follows: • National VET Sector Sustainability Policy and Action Plan • Emission reduction 15% (2009 – 2012). • Energy reduction 15% • GreenPower purchase 20% Chisholm’s ResourceSmart Strategy covers the following key areas: • Renewable energy onsite generation 5% • Energy • Water reduction 15% • Water • Waste recycled 25%. • Waste minimisation and recycling • Onsite renewable energy generation Chisholm’s baseline information was calculated for 2007 and the results for 2011 compare with the baseline are as follows:

2011 (Jan – Dec) VS 2007 Baseline (Jan – Dec)

Impacts/Indicators Measure Baseline 2007 Actual 2011 % (‘07 vs’10) Square Meters (Mth Avg) M2 98,784 111,719 13.1% Student Contact Hours SCH 9,250,627 11,194,353 21.0% Staff Numbers (Mth Avg) # 1,332 1,959 47.1% Student Enrolments # 40,329 43,127 6.9% Staff EFT (Avg) EFT 956 1,109 15.9% Student FTESL (SCH/720) EFTSL 12,848 15,548 21.0% Student (EFTSL) + Staff (EFT) EFTSL + EFT 13,805 16,657 20.7% 2011 Targets t Co2-e 14,223 15,484 T1 – Emissions Reduction (15%) t CO2-e/EFTSL+EFT 1.03 0.93 -9.8% MJ 61,636,903 64,473,039 T2 – Energy Reduction (15%) Total MJ/EFTSL+ EFT 4,465 3,871 -13.3% MJ 3,187,044 5,173,876 T3 – Green Power Purchase (20%) % 9.8% 14.9% 5.1% MJ 0 24,926 T4 – Renewable Energy (5%) % 0 0.04% 0.04% kL 36,744 30,154 T5 – Water Reduction (15%) kL/EFTSL+ EFT 2.66 1.81 -32.0% t 847 1,318 T6 – Waste to Landfill Reduction (25%) t/EFTSL+ EFT 0.0613 0.0791 28.9% % recycled 13.3% 26.3%

Notes: There are many variables that impacted on Chisholm achieving its sustainability targets. Impacts include: • The square metres (m2) of building area increased by 13% in 2011 compared to 2007 • The student contact hours (SCH) increased by 21% in 2011 compared to 2007 • Chisholm operating hours have increased to cope with additional evening and weekend activity • The full operation of the new building stock has contributed additional energy, water and waste.

42 Chisholm Institute 2011 ANNUAL REPORT Financial and Compliance Information

Financial and Compliance Information

Financial Overview 44

Chisholm Institute Financial Reports and Performance 50 Statements

Caroline Chisholm Education Foundation Report 100

Caroline Chisholm Education Foundation Financial 107 Reports

Compulsory Non-Academic Student Fees 118

Activity Table 119

Financial Performance against Budget 121

Chisholm 2011 – 2014 Targets 122

Disclosures Index and Additional Compliance Reports 123

Acronyms 142 Financial Overview Operating statement

Operating Surplus Operating Surplus increased by 32.8% from the prior year. OPERATING SURPLUS 7.6 7.5 2011 2010 8.0 7.0 5.6 $M $M Var 6.0 4.9 3.7 Operating revenues 128,699 128,800 (0.1%) 4.0

Operating expenditures 121,247 123,189 (1.6%) 2.0 7,452 5,611 32.8% 0.0 2006 2007 2008 2009 2010 2011 Operating surplus is the key measure of profitability. This measure is the difference between operating revenues and operating surpluses.

Net Surplus Net Surplus decreased by 71% from the prior year. NET SURPLUS 30.0 2011 2010 21.8 $M $M Var 20.0 15.2 Total revenues 136,287 154,158 (12%) $M 9.5 8.4 10.0 6.1 6.4 Total expenditures 129,885 132,356 (2%) 6,402 21,802 (71%) 0.0 2006 2007 2008 2009 2010 2011 Net surplus results from the operating surplus, the success of obtaining capital funding from Government, depreciation and expenditures from capital grants.

Enterprise Revenue Enterprise revenue decreased by 8% from the prior year. ENTERPRISE INCOME 50.0 42.8 38.8 39.4 2011 2010 35.5 40.0 31.8 $M $M Var 26.2 30.0 Fee for service income 25,029 28,639 (13%) $M 20.0 Student fees and charges 11,158 10,550 6% 10.0 Sale of goods 671 810 (17%) 0.0 Investment income 982 1,002 (2%) 2006 2007 2008 2009 2010 2011 Other 1,562 1,811 (14%) 39,402 42,812 (8%) Enterprise revenue is the operating revenue excluding Government contributions.

Fee for service (FFS) as a % of Total Operating Revenue % FEE FOR SERVICE 25% 22% 23% 23% 22% 2011 2010 19% 19% $M $M Var 20% 15% FFS - Government 8,924 9,093 (2%) % 10% FFS – International students 6,342 9,791 (35%) 5% FFS - International projects 3,370 2,367 42% 0% FFS - Short courses 2,381 2,757 (14%) 2006 2007 2008 2009 2010 2011 FFS - Other 4,013 4,631 (13%) 25,029 28,639 (13%) Fee for service revenue is a major component of Enterprise revenue. Profitable fee for service revenue is the major source of funding for reinvestment in Chisholm.

44 Chisholm Institute Financial Overview Balance Sheet

Working Capital

2011 2010 WORKING CAPITAL $M $M Var 20.0 17.1 18.1 Current assets 15.0 9.4 Cash and cash equivalents 26,377 13,696 93% $M 10.0 7.0 6.1 4.3 Receivables 4,802 12,670 (62%) 5.0 Floating Rate Notes 0 2,000 100% 0.0 Inventories 162 153 6% 2006 2007 2008 2009 2010 2011 Prepayments 1,016 928 9% Current liabilities Payables and accruals (10,938) (8,984) (22%) Short term employee benefits (3,339) (3,324) (0%) 18,080 17,139 5% Working capital is a measure of Chisholm’s liquidity (the ability to pay debts as they fall due) in the short term.

Net Assets (Equity) Net Assets increased by 3% from the prior year. NET ASSETS 2011 2010 300.0 $M $M Var 212.3 219.2 182.2 190.5 200.0 151.6 171.2 Assets $M 100.0 Current assets 32,357 27,447 18% Non current assets 212,312 207,492 2% 0.0 2006 2007 2008 2009 2010 2011 Liabilities Current liabilities (24,144) (21,242) (14%) Non current liabilities (1,370) (1,353) (1%) 219,155 212,344 3% Net assets equal Chisholm’s totals assets less its liabilities.

Annual Report 2011 45 Financial Overview Reinvestment in Chisholm

In 2011, $7.7 million was reinvested into key capital facility projects driving REINVESTMENT IN CHISHOLM Chisholm’s transformation into a training provider of choice. 10,000 7,704 8,000 Reinvestment Growth Year in Chisholm $ $’000 6,000 3,538 2008 3,538,000 3,538,000 4,000 3,282 2,445 2009 3,282,000 -256,000 2,000 2010 2,444,938 -837,062 0 2011 7,703,538 5,258,600 2008 2009 2010 2011

46 Chisholm Institute Annual Report 2011 47 48 Chisholm Institute DECLARATION BY PRESIDENT OF THE BOARD, CHIEF EXECUTIVE OFFICER AND CHIEF FINANCE AND ACCOUNTING OFFICER

We certify the attached financial statements for the Chisholm Institute of TAFE has been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions issued under that legislation, Australian Accounting Standards and other mandatory reporting requirements.

We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and notes to and forming part of the financial statements, presents fairly the financial transactions during the year ended 31 December 2011 and financial position of the Institute as at 31 December 2011.

At the date of signing these financial statements, we are not aware of any circumstance that would render any particulars included in the financial statements to be misleading or inaccurate. There are reasonable grounds to believe that the Institute will be able to pay its debts as and when they become due and payable.

The President of the Board and the Chief Executive Officer sign this declaration as delegates of, and in accordance with a resolution of, the Board of Chisholm Institute of TAFE.

David Willersdorf Maria Peters Grant Radford President of the Board Chief Executive Officer Chief Finance and Accounting

29 February 2012 29 February 2012 29 February 2012 Place: Dandenong Place: Dandenong Place: Dandenong

Annual Report 2011 49 Comprehensive Operating Statement

For the year ended 31 December 2011 2011 2010 Note $’000 $’000 Continuing operations Income from transactions Government contributions – operating 2a(i) 89,297 85,988 Government contributions – capital 2a(ii) 7,567 25,295 Sale of goods and services 2b 36,858 39,999 Interest 2c 982 1,002 Total fair value of assets received free of charge or for nominal consideration 2d 0 450 Other income 2e 1,562 1,361 Total income from transactions 136,266 154,095

Expenses from transactions Employee benefits 3a 89,612 90,737 Depreciation and amortisation 3b 6,357 5,867 Grants and other transfers 3c 17 20 Supplies and services 3d 21,808 24,215 Other operating expenses 3e 9,830 10,399 Total expenses from transactions 127,624 131,238

Net result from transactions 8,642 22,857

Other economic flows included in net result Net gain/(loss) on non-financial assets 4a (59) (11) Net gain/(loss) on financial instruments and statutory receivables/payables 4b (13) (367) Net gain/(loss) arising from revaluation of long service leave liability 4c (1,765) (370) Net gain/(loss) arising from revaluation of annual leave liability 4c (403) (307) Total other economic flows included in net result (2,240) (1,055)

Net result from continuing operations 6,402 21,802

Other economic flows – other non owner changes in equity - -

Comprehensive result 6,402 21,802

The above comprehensive operating statement should read in conjunction with the accompanying notes.

50 Chisholm Institute Balance Sheet

As at 31 December 2011 2011 2010 Note $’000 $’000 Assets Financial assets Cash and deposits 5 26,377 13,696 Receivables 6 4,802 12,670 Investments, loans and other financial assets 7 0 2,000 Total financial assets 31,179 28,366

Non financial assets Inventories 8 162 153 Property, plant and equipment 10 212,064 205,420 Intangibles 11 248 0 Other non financial assets 9 1,016 1,000 Total non financial assets 213,490 206,573

Total Assets 244,669 234,939

Liabilities Payables 12 8,882 6,481 Provisions 13 14,576 13,611 Other liabilities 14 2,056 2,503 Total liabilities 25,514 22,595

Net assets 219,155 212,344

Equity Accumulated surplus/(deficit) 15 92,744 86,342 Reserves 15 41,024 41,024 Contributed capital 15 85,387 84,978 Net worth 219,155 212,344

Commitments for expenditure 18 Contingent assets and contingent liabilities 20

The above balance sheet should be read in conjunction with the accompanying notes.

Annual Report 2011 51 Statement of Changes in Equity

For the year ended 31 December 2011

Transactions Total with owners in Equity at Comprehensive their capacity Equity at 1 Jan 2011 result as owners 31 Dec 2011 Note $’000 $’000 $’000 $’000 Accumulated surplus/(deficit) 86,342 6,402 - 92,744 Adjustment due to changes in accounting policy - - - - Accumulated surplus/(deficit) 86,342 6,402 - 92,744 at the end of the year

Contribution by owners 84,978 - 409 85,387 Contributed capital - - - Withdrawal of equity - - - - Contribution by owners at the end of the year 84,978 - 409 85,387 - Physical assets revaluation reserve 41,024 - - 41,024 Financial assets available-for-sale reserve - - - - Adjustments due to change in accounting policy - - - - 41,024 - - 41,024 - Total equity at the end of the year 212,344 6,402 409 219,155

Transactions Total with owners in Equity at Comprehensive their capacity Equity at 1 Jan 2010 result as owners 31 Dec 2010 Note $’000 $’000 $’000 $’000 Accumulated surplus/(deficit) 64,540 21,802 - 86,342 Adjustment due to changes in accounting policy - - - - Accumulated surplus/(deficit) 64,540 21,802 - 86,342 at the end of the year

Contribution by owners 84,978 - - 84,978 Contributed capital - - - - Withdrawal of equity - - - - Contribution by owners at the end of the year 84,978 - - 84,978

Physical assets revaluation reserve 41,024 - - 41,024 Financial assets available-for-sale reserve - - - - Adjustments due to change in accounting policy - - - - 41,024 - - 41,024 - Total equity at the end of the year 190,542 21,802 - 212,344

The above statement of changes in equity should be read in conjunction with the accompanying notes.

52 Chisholm Institute Cash Flow Statement

For the year ended 31 December 2011

2011 2010 Note $’000 $’000 Cash flows from operating activities Receipts Government contributions- operating 97,061 82,177 Government contributions- capital 7,567 24,184 User fees and charges 42,320 37,397 Goods and services tax recovered from the ATO 876 3,511 Interest received 1,022 1,000 Other receipts 2,242 2,174 Total receipts 151,088 150,443

Payments Payments to employees (91,169) (90,626) Payments to suppliers (33,751) (34,674) Goods and services tax paid (2,587) (3,618) Total Payments (127,507) (128,918)

Net cash provided by/ (used in) operating activities 23,581 21,525

Cash flows from investing activities Payments for non financial assets (12,921) (24,563) Proceeds from sale of non financial assets 21 63 Proceeds from maturation of financial assets 2,000 6,000 Net cash provided by/(used in) investing activities (10,900) (18,500)

Net increase/(decrease) in cash and cash equivalents 12,681 3,025

Cash and cash equivalents at the beginning of the financial year 13,696 10,671 Cash and cash equivalents at the end of the financial year 5 26,377 13,696

The above cash flow statement should be read in conjunction with the accompanying notes.

Annual Report 2011 53 Notes to the Financial Statements

For the year ended 31 December 2011

1. statement of significant accounting policies The annual financial statements represent the audited general purpose financial statements and notes of Chisholm Institute of TAFE (the Institute).

1.01 statement of compliance These general purpose financial statements have been prepared in accordance with the Financial Management Act 1994 (FMA) and applicable Australian Accounting Standards (AAS) which include Interpretations, issued by the Australian Accounting Standards Board (AASB). In particular, they are presented in a manner consistent with the requirements of the AASB 1049 Whole of Government and General Government Sector Financial Reporting.

Where appropriate, those AAS paragraphs applicable to not-for-profit entities have been applied.

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

1.02 Basis of preparation The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

These financial statements are presented in Australian dollars, the functional and presentation currency of the Institute.

In the application of AAS, judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

The estimates and associated assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements made by management in the application of AASs that have significant effects on the financial statements and estimates, with a risk of material adjustments in the next year, are disclosed throughout the notes to the financial statements.

These financial statements have been prepared in accordance with the historical cost convention. Historical cost is based on the fair values of the consideration given in exchange for assets.

Exceptions to the historical cost convention include:

• non-financial physical assets which, subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair value • the fair value of an asset other than land is generally based on its depreciated replacement value • certain liabilities that are calculated with regard to actuarial assessments; and • available-for-sale investments which are measured at fair value with movements reflected in equity until the asset is derecognised. The accounting policies set out below have been applied in preparing the financial statements for the year ended 31 December 2011 and the comparative information presented for the year ended 31 December 2010.

54 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

The following is a summary of the material accounting policies adopted by the Institute in the preparation of the financial statements. The accounting policies have been consistently applied unless otherwise stated.

1.03 Reporting entity The financial statements cover the Chisholm Institute of TAFE as an individual reporting entity. The Institute is a statutory body corporate, established pursuant to an act made by the Victorian Government under the Education and Training Reform Act 2006 Section 3.1.12 4(a).

Its principal address is: Chisholm Institute of TAFE 121 Stud Road Dandenong VIC 3175

1.04 Basis of Consolidation The Institute operates a controlled entity, the Caroline Chisholm Education Foundation. All transactions related to the operation of the Caroline Chisholm Education Foundation are reported separately and not consolidated based on the view that the figures are immaterial.

1.05 Events after reporting date Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between the Institute and other parties, the transactions are only recognised when the agreement is irrevocable at or before balance date. Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting date and before the date the statements are authorised for issue, where those events provide information about conditions which existed at the reporting date. Note disclosure is made about events between the reporting date and the date the statements are authorised for issue where the events relate to a condition which arose after the reporting date and which may have a material impact on the results of subsequent years.

1.06 goods and Services Tax (GST) Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable (i.e. on a gross basis). The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.

Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

Commitments and contingent assets or liabilities are also presented on a gross basis.

Annual Report 2011 55 Notes to the Financial Statements

For the year ended 31 December 2011

1.07 income from Transactions Amounts disclosed as income is where applicable, net of returns, allowances and duties and taxes. Revenue is recognised for each of the Institute’s major activities as follows:

Government Contributions Government contributions are recognised as revenue in the period when the Institute gains control of the contributions. Control is recognised upon receipt or notification by relevant authorities of the right to receive a contribution for the current period.

Fee for service Fee for service revenue is recognised by reference to the percentage completion of each contract, i.e. in the reporting period in which the services are rendered. Where fee for service revenue of a reciprocal nature has been clearly received in respect of programs or services to be delivered in the following year, such amounts are disclosed as revenue in advance.

Student fees and charges Student fees and charges revenue is recognised by reference to the percentage of services provided. Where student fees and charges revenue has been clearly received in respect of courses or programs to be delivered in the following year, any non- refundable portion of the fees are treated as revenue in the year of receipt and the balance as revenue in advance.

Revenue from sale of goods Revenue from sale of goods is recognised by the Institute when:

- The significant risks and rewards of ownership of the goods have been transferred to the buyer;

- The Institute retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- The amount of revenue can be reliably measured; and

- It is probable that the economic benefits associated with the transaction will flow to the Institute and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Interest income Interest income from cash, short-term deposits and investments is brought to account on a time proportional basis taking into account interest rates applicable to the financial assets.

Net realised and unrealised gains and losses on the revaluation of investments do not form part of income from transactions, but are reported as part of income from other economic flows in the net result or as unrealised gains and losses taken direct to equity, forming part of the total change in net worth in the comprehensive result.

Other income Rental income is recognised on a time proportional basis and is brought to account when the Institute’s right to receive the rental is established.

Fair value of assets received free of charge or for nominal consideration Contributions of resources received free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated.

56 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

1.08 Expenses from transactions Employee benefits Expense for employee benefits are recognised when incurred, except for contributions in respect of defined benefit plans.

Retirement benefit obligations (i) Defined contribution plan Contributions to defined contribution plans are expensed when they become payable.

(ii) Defined benefit plans The amount charged to the comprehensive operating statement in respect of superannuation represents the contributions made by the Institute to the superannuation plan in respect of current services of current Institute staff. Superannuation contributions are made to the plans based on the relevant rules of each plan.

The Institute does not recognise any deferred liability in respect of the plan(s) because the Institute has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as and when they fall due. The Department of Treasury and Finance recognises and discloses the State’s defined benefit liabilities in its finance report.

Depreciation Depreciation is provided on property, plant and equipment, including freehold buildings but excluding land. Depreciation is generally calculated on a straight-line basis so as to write off the net cost or other re-valued amount of each asset over its expected useful life to its estimated residual value. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period.

Depreciation methods and rates are used for each class of depreciable assets.

Class of assets Method Rates Buildings Straight line 1.64%- 14.28% 2010 1.64%-14.28%) Land Improvements Straight line 2.50%- 6.67% 2010: 2.50% -6.67%) Plant and Equipment Straight line 10.00%-34.00% (2010: 10.00% -34.00%) Motor Vehicles Straight line 15.00% (2010:15.00%) Library Collections Straight line 20.00% (2010:20.00%)

The assets’ residual values and useful lives are reviewed and adjusted if appropriate on an annual basis.

Grants and other transfers Grants and other transfers to third parties are recognised as an expense in the reporting period in which they are paid or payable.

Annual Report 2011 57 Notes to the Financial Statements

For the year ended 31 December 2011

Other operating expenses Supplies and services Supplies and services expenses are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any inventories held for distribution are expensed when distributed.

Fair value of assets provided free of charge or for nominal consideration Resources provided free of charge or for nominal consideration are recognised at their fair value.

1.09 Other economic flows included in net result Other economic flows measure the change in volume of value of assets or liabilities that do not result from transactions.

Net gain/(loss) on non financial assets Net gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses from revaluations, impairments, and disposals of all physical assets.

Disposal of non-financial assets Any gain or loss on disposal of non-financial assets is recognised at the date control of the asset is passed to the buyer and is determined after deducting from the proceeds the carrying value of the asset at the time.

Impairment of assets Assets are assessed annually for indications of impairment, except for: - Inventories - Financial assets - Investment property that is measured at fair value; and - Non-current assets held for sale.

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by a charge to the comprehensive operating statement, except to the extent that the write down can be debited to an asset revaluation reserve amount applicable to that class of asset.

If there is an indication that there has been a change in the estimate of an asset’s recoverable amount since the last impairment loss was recognised, the carrying amount shall be increased to its recoverable amount. This reversal of the impairment loss occurs only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years.

It is deemed that, in the event of the loss or destruction of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made.

58 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash flows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell. It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made.

Net gain/ (loss) on financial instruments Net gain/(loss) on financial instruments includes realised and unrealised gains and losses from revaluations of financial instruments that are designated at fair value through profit or loss or held-for-trading, impairment and reversal of impairment for financial instruments at amortised cost, and disposals of financial assets.

Revaluation of financial instruments at fair value The revaluation gain/(loss) on financial instruments at fair value excludes dividends or interest earned on financial assets, which is reported as part of income from transactions.

Impairment of financial assets Bad and doubtful debts are assessed on a regular basis. Those bad debts considered as written off by mutual consent are classified as a transaction expense. The allowance for doubtful receivables and bad debts not written off by mutual consent are adjusted as ‘other economic flows’.

Other gains/(losses) from economic flows Other gains/(losses) from other economic flows include the gains or losses from reclassifications of amounts from reserves and/or accumulated surplus to net result, and from the revaluation of the present value of the annual and long service leave liabilities due to changes in the bond interest rates.

1.10 Financial assets Cash and deposits Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and those highly liquid investments with an original maturity of three months or less, which are held for the purpose of meeting short term cash commitments rather than for investment purposes, and which are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

For cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as borrowings on the balance sheet.

Receivables Receivables consist of:

• statutory receivables, which include predominantly amounts owing from the Victorian Government and GST input tax credits recoverable; and • contractual receivables, which include mainly debtors in relation to goods and services, loans to third parties, accrued investment income, and finance lease receivables. Receivables that are contractual are classified as financial instruments. Statutory receivables are not classified as financial instruments.

Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest method, less an allowance for impairment.

Annual Report 2011 59 Notes to the Financial Statements

For the year ended 31 December 2011

A provision for doubtful receivables is made when there is objective evidence that the debts may not be collected and bad debts are written off when identified.

Investments and other financial assets Investments are classified in the following categories:

• financial assets at fair value through profit or loss, • loans and receivables, and • available for sale financial assets.

The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition.

Any dividend or interest earned on the financial asset is recognised in the consolidated comprehensive operating statement as a transaction.

Derecognition of financial assets A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:

• the rights to receive cash flows from the asset have expired; or • the Institute retains the right to receive cash flows from the asset, but has assumed an obligation to pay • them in full without material delay to a third party under a ‘pass through’ arrangement; or • the Institute has transferred its rights to receive cash flows from the asset and either: (a) has transferred substantially all the risks and rewards of the asset, or

(b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Where the Institute has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of the Institute’s continuing involvement in the asset.

At the end of each reporting period, the Institute assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual review for impairment.

Bad and doubtful debts for financial assets are assessed on a regular basis. Those bad debts considered as written off by mutual consent are classified as a transaction expense. Bad debts not written off by mutual consent and the allowance for doubtful receivables are classified as ‘other economic flows’ in the net result.

The amount of the allowance is the difference between the financial asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate.

In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets.

60 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

1.11 Leases A lease is a right to use an asset for an agreed period of time in exchange for payment.

Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance infrastructure leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership from the lessor to the lessee. All other leases are classified as operating leases.

Finance leases Institute as lessor Amounts due from lessees under finance leases are recorded as receivables. Finance lease receivables are initially recorded at amounts equal to the present value of the minimum lease payments receivable plus the present value of any unguaranteed residual value expected to accrue at the end of the lease term. Finance lease receipts are apportioned between periodic interest income and reduction of the lease receivable over the term of the lease in order to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

Institute as lessee At the commencement of the lease term, finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the lease property or, if lower, the present value of the minimum lease payment, each determined at the inception of the lease. The lease asset is depreciated over the shorter of the estimated useful life of the asset or the term of the lease.

Minimum finance lease payments are apportioned between reduction of the outstanding lease liability, and periodic finance expense which is calculated using the interest rate implicit in the lease and charged directly to the comprehensive operating statement.

Operating leases Institute as lessee Operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the balance sheet.

All incentives for the agreement of a new or renewed operating lease are recognised as an integral part of the net consideration agreed for the use of the leased asset, irrespective of the incentive’s nature or form or the timing of payments.

In the event that lease incentives are received to enter into operating leases, the aggregate cost of incentives are recognised as a reduction of rental expense over the lease term on a straight-line basis, unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Annual Report 2011 61 Notes to the Financial Statements

For the year ended 31 December 2011

1.12 Non financial assets Inventories Inventories include goods and other property held either for sale or for distribution at no or nominal cost in the ordinary course of business operations.

Inventories, including land held for sale, are measured at the lower of cost and net realisable value.

Cost for all other inventory is measured on the basis of weighted average cost.

Inventories acquired for no cost or nominal considerations are measured at current replacement cost at the date of acquisition.

Non-current physical assets classified as held-for-sale, including disposal group assets Non-financial physical assets (including disposal group assets) are treated as current and classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use

This condition is regarded as met only when:

• The asset is available for immediate use in the current condition; and • The sale is highly probable and the asset’s sale is expected to be completed within twelve months from the date of classification.

These non-financial physical assets, related liabilities and financial assets are measured at the lower of carrying amount and fair value less costs to sell, and are not subject to depreciation or amortisation.

Property, plant and equipment All non-financial physical assets, are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment.

The initial cost for non-financial physical assets under a finance lease is measured at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease.

Where an asset is received for no or nominal consideration, the cost is the asset’s fair value at the date of acquisition.

The fair value of infrastructure systems and plant, equipment and vehicles, is normally determined by reference to the asset’s depreciated replacement cost, or where the infrastructure is held by a for profit entity, the fair value may be derived from estimates of the present value of future cash flows. For plant, equipment and vehicles, existing depreciated historical cost is generally a reasonable proxy for depreciated replacement cost because of the short lives of the assets concerned.

Certain assets are acquired under finance leases, which may form part of a service concession arrangement.

The cost of constructed non-financial physical assets includes the cost of all materials used in construction, direct labour on the project, and an appropriate proportion of variable and fixed overheads.

Where an asset is received for no or nominal consideration, the cost is the asset’s fair value at the date of acquisition.

For the accounting policy on impairment of non-financial physical assets refer to Note on Impairment of non-financial assets.

62 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

Library collections Library collections are measured at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.

Leasehold improvements The cost of a leasehold improvement is capitalised as an asset and depreciated over the remaining term of the lease or the estimated useful life of the improvements, whichever is the shorter.

Non financial physical assets constructed by the Institute The cost of non-financial physical assets constructed by the Institute includes the cost of all materials used in construction, direct labour on the project, and an appropriate proportion of variable and fixed overheads.

Revaluations of non-current physical assets Non-current physical assets measured at fair value are revalued in accordance with FRDs issued by the Minister for Finance. This revaluation process normally occurs every five years, based upon the asset’s Government Purpose Classification, but may occur more frequently if fair value assessments indicate material changes in values. Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value.

Revaluation increases are credited directly to equity in the revaluation surplus, except to the extent that an increase reverses a revaluation decrease in respect of that class of property, plant and equipment, previously recognised as an expense (other economic flows) in the net result, the increase is recognised as income (other economic flows) in determining the net result.

Revaluation decreases are recognised immediately as expenses (other economic flows) in the net result, except to the extent that a credit balance exists in the revaluation surplus in respect of the same class of property, plant and equipment, they are debited to the revaluation reserve.

Revaluation increases and revaluation decreases relating to individual assets within a class of property, plant and equipment are offset against one another within that class but are not offset in respect of assets in different classes.

When revalued assets are sold, it is Institute policy to transfer the amounts included in other reserves in respect of these assets to accumulated funds.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Non-current physical assets constructed by the Institute The cost of non-current assets constructed by the Institute includes the cost of all materials used in construction, direct labour on the project, and an appropriate proportion of variable and fixed overheads.

Annual Report 2011 63 Notes to the Financial Statements

For the year ended 31 December 2011

Intangibles Intangible assets represent identifiable non-monetary assets without physical substance. Intangible assets are recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to the Institute.

Intangible assets are measured at cost less accumulated amortisation and impairment, and are amortised on a straight-line basis over their useful lives as follows:

2011 Capitalised software development cost (years) 4

1.13 Liabilities Payables Payables consist of:

• Contractual payables, such as accounts payable, and unearned income including deferred income from concession arrangements. Accounts payable represent liabilities for goods and services provided to the Institute prior to the end of the financial year that are unpaid, and arise when the Institute becomes obliged to make future payments in respect of the purchase of those goods and services; and • Statutory payables, such as goods and services tax and fringe benefits tax payables.

Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost.Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from a contract.

Provisions Provisions are recognised when the Institute has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows

Employee benefits The calculation of employee benefits includes all relevant on-costs and is calculated as follows at reporting date.

(i) Wages, salaries and annual leave Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of employee services up to the reporting date, classified as current liabilities and measured at their nominal values.

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulated sick leave expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of employee services up to the reporting date, classified as current liabilities and measured at their nominal values.

Liabilities that are not expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits as current liabilities, measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

64 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

(ii) long service leave Liability for long service leave (LSL) is recognised in the provision for employee benefits.

Current Liability - unconditional LSL representing seven years of service is disclosed as a current liability even when the Institute does not expect to settle the liability within 12 months because it will not have the unconditional right to defer settlement of the entitlement should an employee take leave within 12 months.

The components of this current liability are measured at: • Present value - component that is not expected to be settled within 12 months • Nominal value - component that is expected to be settled within 12 months

Non-current liability - conditional LSL representing less than seven years is disclosed as a non - current liability. There is an unconditional right to defer settlement of the entitlement until the employee has completed the requisite years of service.

This non-current LSL liability is measured at present value. Gain or loss following revaluation of the present value of non- current LSL liability due to changes in bond interest rates is recognised as an ‘other economic flow’.

(iii) Termination benefits Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Institute recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to present value.

Employee benefits on-costs Employee benefits on-costs (payroll tax, workers compensation, superannuation, annual leave and long service leave accrued while on LSL taken in service) are included in the provision for employee benefits.

Performance payments Performance payments for TAFE Executive Officers are based on a percentage of the annual salary package provided under the contract of employment. A liability is provided for under the term of the contracts at reporting date and paid out in the next financial year.

Onerous contracts An onerous contract is considered to exist where the Institute has a contract under which the unavoidable cost of meeting the contractual obligations exceed the economic benefits estimated to be received. Present obligations arising under onerous contracts are recognised as a provision to the extent that the present obligation exceeds the economic benefits estimated to be received.

1.14 Commitments Commitments include those operating, capital and other outsourcing commitments arising from non - cancellable contractual or statutory sources and are disclosed at their nominal value and inclusive of the GST payable.

1.15 contingent assets and liabilities Contingent assets and liabilities are not recognised in the balance sheet, but are disclosed by way of a note (refer note 20) and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of the GST receivable or payable respectively.

Annual Report 2011 65 Notes to the Financial Statements

For the year ended 31 December 2011

1.16 Equity Contributed capital Funding that is in the nature of contributions by the State Government are treated as contributed capital when designated in accordance with UIG Interpretation 1038 Contribution by Owners Made to Wholly-Owned Public Sector Entities. Commonwealth capital funds are not affected and are treated as income.

1.17 Foreign currency transactions Functional and presentation currency The Institute’s financial statements are presented in Australian dollars which is the entity’s functional and presentation currency.

Transactions and balances Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined.

Exchange differences arising on the translation of monetary items are recognised in the income statement in the period in which they arise, except where deferred in equity as a qualifying cash flow or net investment hedge.

Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent that the gain or loss is directly recognised in equity; otherwise the exchange differences are recognised in the comprehensive operating statement.

1.18 Materiality In accordance with Accounting Standard AASB1031 ‘Materiality’, accounting policies need only be identified in the summary of accounting policies where they are considered ‘material’. Accounting policies will be considered material if their omission, misstatement or non-disclosure has the potential, individually or collectively, to:

(a) influence the economic decisions of users taken on the basis of the financial statements; and

(b) affect the discharge of accountability by the management or governing body of the entity.

1.19 Rounding of amounts Amounts in the financial statements have been rounded to the nearest thousand dollars, unless otherwise stated.

1.20 comparative information When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

1.21 New accounting standards and interpretations Certain new accounting standards and interpretations have been published that are not mandatory for the 31 December 2011 reporting period.

As at 31 December 2011, the following standards and interpretations applicable to the Institute had been issued but were not mandatory for financial year ending 31 December 2011. The Institute has not, and does not intend to, adopt these standards early.

66 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

Amending Pronouncements Standards Affected Outline of Amendment Application Impact on financial and Errata date of statements standard

AASB 9 Financial Instruments AASB 139 Financial This standard simplifies Reporting Detail of impact is still Instruments: requirements for the classification periods being assessed Recognition and and measurement of financial beginning on Measurement assets resulting from Phase 1 1 January 2013 of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement

AASB 1053 Application of Tiers of This standard establishes a Reporting The Victorian Australian Accounting Standards differential financial reporting periods Government is currently framework consisting of two beginning on considering the impacts tiers of reporting requirements 1 July 2013 of reduced disclosure for preparing general purpose requirements (RDRs) financial statements for certain public sector entities and has not decided if RDRs will be implemented in the Victorian public sector

AASB 2009 11 Amendments to AASB 1, 3, 4, 5, 7, This standard gives effect to Reporting Detail of impact is still Australian Accounting Standards 101, 102, 108, 112, consequential changes arising periods being assessed arising from AASB 9 118, 121, 127, 128, from the issuance of AASB 9 beginning on 131, 132, 136, 139, 1 January 2013 1023 and 1038 and Interpretations 10 and 12

AASB 2010 2 Amendments to These amendments introduce Reporting The amendments do Australian Accounting Standards reduced disclosure requirements periods not affect financial arising from Reduced Disclosure for application by certain types of beginning on measurement or Requirements entities 1 July 2013 recognition and are not expected to have any impact on financial result or position

AASB 2010 7 Amendments to AASB 1, 3, 4, 5, 7, 101, This relates to the introduction of Reporting Detail of impact is still Australian Accounting Standards 102, 108, 112, 118, AASB 9 Financial instruments periods being assessed arising from AASB 9 (December 120, 121, 127, 128, beginning on 2010) 131, 132, 136, 137, 1 January 2013 139, 1023 and 1038 and Interpretations 2, 5, 10, 12, 19 and 127

Annual Report 2011 67 Notes to the Financial Statements

For the year ended 31 December 2011

Amending Pronouncements Standards Affected Outline of Amendment Application Impact on financial and Errata date of statements standard

AASB 2011 2 Amendments to AASB 101 and AASB The objective of this amendment Reporting The Victorian Australian Accounting Standards 1054 is to include some additional periods Government is currently arising from the Trans Tasman disclosure from the Trans Tasman beginning on considering the impacts Convergence Project – Reduced Convergence Project and to 1 January 2013 of RDRs and has not Disclosure Requirements reduce disclosure requirements for decided if they will be entities preparing general purpose implemented in the financial statements under Victorian public sector Australian Accounting Standards – Reduced Disclosure Requirements (RDRs)

AASB 2011 3 Amendments to AASB 1049 This amends AASB 1049 to Reporting There will be no impact Australian Accounting Standards clarify the definition of the ABS periods on performance – Orderly Adoption of Changes to GFS Manual, and to facilitate beginning on measurement the ABS GFS Manual and Related the adoption of changes to the July 2012 Amendments ABS GFS Manual and related disclosures

This amendment provides clarification to users on the version of the GFS Manual to be used and what to disclose if the latest GFS Manual is not used

68 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

2011 2010 Note $’000 $’000 2. Income from transactions

(a) Grants and other transfers Government financial assistance (i) Government contributions - operating Recurrent contributions 25,255 64,761 Contestable contributions 51,914 11,953 Other contributions 12,128 9,274 Total Government contributions - operating 89,297 85,988

(ii) Government contributions - capital Commonwealth capital 7,165 23,977 State capital 402 1,318 Total Government contributions – capital 7,567 25,295 Total Government financial assistance 96,864 111,283

(b) Sale of goods and services Student fees and charges 11,158 10,550 Rendering of services Fee for service - Government 8,924 9,093 Fee for service - International Operations - onshore 6,342 9,791 Fee for service - International Operations - offshore 3,370 2,367 Fee for service - Other 6,393 7,388 Total rendering of services 25,029 28,639 Other non-course fees and charges Sale of goods 671 810 Total income from sale of goods and services 36,858 39,999

(c) Interest Interest on bank deposits 982 1,002

(d) Fair value of assets received free of charge or for nominal consideration Building improvements and equipment 0 450

(e) Other income Rental revenue 419 424 Donations bequests and contributions 10 10 Scholarships (4) 35 Other 1,137 892 Total other income 1,562 1,361

Annual Report 2011 69 Notes to the Financial Statements

For the year ended 31 December 2011

2011 2010 Note $’000 $’000 3. Expenses from transactions

(a) Employee expenses Salaries, wages, overtime and allowances 74,732 76,030 Superannuation 6,462 6,883 Payroll tax 4,041 4,128 Worker’s compensation 694 548 Long service leave 1,045 1,360 Annual leave 775 731 Termination benefits 1,735 874 Other 128 183 Total employee benefits 89,612 90,737

(b) Depreciation and amortisation Buildings 4,501 4,104 Plant and equipment 1,508 1,450 Motor vehicles 111 106 Library collections 190 182 Land improvements 35 25 Total depreciation 6,345 5,867 Software 12 0 Total depreciation and amortisation 6,357 5,867

(c) Grants and other transfers Grants and subsidies to apprentices and trainees 17 20

(d) Supplies and services Purchase of supplies and consumables 4,979 5,715 Communication expenses 1,233 1,378 Contract and other services 5,570 5,339 Cost of goods sold/distributed (ancillary trading) 101 44 Building repairs and maintenance 3,111 3,182 Other financing costs (other than interests) 101 82 Minor tools and equipment 151 140 Equipment below capitalisation threshold 2,569 3,158 Fees and charges 3,993 5,177 Total suppliers and services 21,808 24,215

70 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

2011 2010 Note $’000 $’000 (e) Other expenses General expenses Marketing and promotional expenses 1,612 1,766 Utilities 1,590 1,571 Audit fees and services 155 156 Staff development 662 716 Travel and motor vehicle expenses 2,520 2,025 Other expenses 2,062 2,913 Total general expenses 8,601 9,147

Operating lease rental expenses 1,229 1,252 Total other expenses 9,830 10,399

4. Other economic flows included in net result (a) Net gain/(loss) on non financial assets Net gain/(loss) on disposal of physical assets (59) (11) Total net gain/(loss) arising from non financial assets (59) (11)

(b) Net gain/(loss) statutory receivables/payables or: Loans and receivables (13) (367) Total net gain/(loss) on financial instruments (13) (367)

(c) Other gains/(losses) from other economic flows Net gain/(loss) arising from revaluation of long service leave liabilities (1,765) (370) Net gain/(loss) arising from revaluation of annual leave liabilities (403) (307) Total other gains/(losses) from other economic flows (2,168) (677) Total other economic flows included in net result (2,240) (1,055)

5. Cash and cash equivalents Cash at bank and on hand 2,662 2,395 Deposits at call 23,715 8,301 Floating rate notes - 3,000 Total cash and cash equivalents 26,377 13,696

Annual Report 2011 71 Notes to the Financial Statements

For the year ended 31 December 2011

2011 2010 Note $’000 $’000 (a) Reconciliation of cash at the end of the year The above figures are reconciled to cash at the end of the financial year as shown in the statement of cash flows as follows: Balances as above 26,377 13,696 Balances as per cash flow statement 26,377 13,696

(b) Cash at bank and on hand Cash at bank is bearing floating interest rates between 4.13% and 3.63% (2010: 2.63% and 4.13%)

(c) Deposits at call The deposits are bearing floating interest rates between 4.95% and 4.20% (2010: 3.20% and 4.95%)

6. Receivables Current receivables Contractual Trade receivables 1,847 1,837 Provision for doubtful trade receivables (a) (See also Note 6(a) below) (a) (13) (367) Other debtors 904 1,115 Revenue receivable 2,064 9,514 Total contractual receivables 4,802 12,099

Statutory GST receivable from the ATO 0 571 Total statutory receivables 0 571 Total current receivables 4,802 12,670

The average credit period on sales of goods is 21 days. No interest is charged on receivables for the first 21 days from the date of the invoice or thereafter.

(a) Movement in the provision for doubtful trade receivables Balance at the beginning of the year (367) (146) Reversal of unused provision recognised in net result 136 48 Increase in provision recognised in net result (13) (367) Reversal of provision for uncollectable receivables written off during the year 231 98 Balance at the end of the year (13) (367)

(b) Ageing analysis of contractual receivables Refer to Note 27 for the ageing analysis of contractual receivables

(c) Nature and extent of risk arising from contractual receivables Refer to Note 27 for a review of the nature and extent of risk arising from contractual receivables

72 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

2011 2010 Note $’000 $’000 7. Investment, loans and other financial assets Current investments, loans, and financial assets Floating rate notes 0 2,000 Non current investments, loans and financial assets Floating rate notes - - Total investments, loans and financial assets 0 2,000

(a) Ageing analysis of investments, loans and financial assets Refer to Note 27 for the ageing analysis of investments, loans and other financial assets.

(b) Nature and extent of risk from investments, loans and other financial assets

Refer to Note 27 for a review of the risks arising from investments, loans and other financial assets.

8. Inventories Supplies and consumables – at cost 162 153 Total current inventories 162 153

9. Other non financial assets Total current other non-financial assets Prepayments 1,016 928 Total non-current other financial assets Prepayments 0 72 Total other non-financial assets 1,016 1,000

Annual Report 2011 73 Notes to the Financial Statements

For the year ended 31 December 2011

10. Property, plant and equipment

Construction Plant and Motor Land Land Buildings in progress equipment vehicles Library imp. Total 2011 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

As at 1 Jan 2011

Cost 18,338 18,338

Valuation 33,910 152,100 18,245 840 2,439 790 208,324

Accumulated Depreciation (8,027) (10,907) (348) (1,923) (37) (21,242)

Opening net book 33,910 144,073 18,338 7,338 492 516 753 205,420 amount

Year ended 31 Dec 2011

Opening net book amount 33,910 144,073 18,338 7,338 492 516 753 205,420

Additions 11,618 1,259 0 155 37 13,069

Disposals (80) (31) 0 0 0 (111)

Depreciation write-back 15 16 31

Transfer to buildings 28,718 (28,718) 0

Transfer to plant and (68) 68 0 equipment

Depreciation (4,501) (1,508) (111) (190) (35) (6,345)

Closing net book amount 33,910 168,225 1,170 7,074 381 481 823 212,064

At 31 Dec 2011

Cost 1,170 1,170

Valuation 33,910 180,738 19,484 839 2,593 896 238,460

Accumulated Depreciation - (12,514) - (12,410) (458) (2,112) (73) (27,566)

Net book amount 33,910 168,225 1,170 7,074 381 481 823 212,064

Independent valuation of land and buildings was performed by Cunningham Property Consultants Pty Ltd in accordance with accounting standard AASB 116 Property, plant and equipment and AASB 136 Impairment of assets on 31 December 2008. For the year ended 31 December 2011, and per the guidelines of FRD103D Non current physical assets, the movement in land and building indices were assessed to ensure that the Institute’s land and building assets are recorded at their fair value.

74 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

Construction Plant and Motor Land Land Buildings in progress equipment vehicles Library imp. Total 2010 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

As at 1 Jan 2010

Cost 3,803 3,803

Valuation 146,566 16,444 752 2,200 450 200,322

Accumulated Depreciation (3,924) (11,802) (298) (1,741) (12) (17,777)

Net book amount 33,910 142,642 3,803 4,642 454 459 438 186,348

Year ended 31 Dec 2010

Opening net book amount 33,910 142,642 3,803 4,642 454 459 438 186,348

Additions 20,756 3,499 178 239 340 25,012

Disposals (2,385) (90) (2,475)

Depreciation write-back 2,345 56 2,401

Transfer to buildings 5,534 (5,534) -

Transfer to plant and (687) 687 - equipment

Depreciation (4,103) (1,450) (106) (182) (25) (5,866)

Closing net book amount 33,910 144,073 18,338 7,338 492 516 753 205,420

At 31 Dec 2010

Cost 18,338 18,338

Valuation 33,910 152,100 18,245 840 2,439 790 208,324

Accumulated Depreciation (8,027) (10,907) (348) (1,923) (37) (21,242)

Net book amount 33,910 144,073 18,338 7,338 492 516 753 205,420

Annual Report 2011 75 Notes to the Financial Statements

For the year ended 31 December 2011

11. Intangible Assets

Software Total 2011 $’000 $’000

As at 1 Jan 2011 - -

Cost

Accumulated amortisation and impairment

Net book amount

Year ended 31 Dec 2011

Opening net book amount - -

Additions from internal developments 260 260

Disposals

Impairment losses charged to net result

Amortisation charge1 (12) (12)

Closing net book amount 248 248

Software Total 2010 $’000 $’000

As at 1 Jan 2010 - -

Cost

Accumulated amortisation and impairment

Net book amount

Year ended 31 Dec 2010

Opening net book amount - -

Additions from internal developments - -

Disposals

Impairment losses charged to net result

Amortisation charge 1 - -

Closing net book amount - -

1 Amortisation charged is reported as an expense from transactions in the Comprehensive Operating Statement.

The Institute has capitalised software development expenditure for the upgrade of its Strata software. The carrying amount of the capitalised software development expenditure is $0.25 million (2010: nil). Its useful life is 4 years and will be fully amortised in 2014.

76 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

2011 2010 Note $’000 $’000

2011 2010 Note $’000 $’000 12. Payables Current Contractual Supplies and services 3,972 5,380 Amounts payable to governments and agencies 3,659 0

Statutory GST payable 120 0 Group tax payable 731 544 Other taxes payable 401 558 Total current payables 8,882 6,481

(a) Foreign currency risk

The carrying amounts of the entity’s payables are denominated in the following currency:

Australian dollars 8,882 6,481 Notes 1. The average credit period is 30 days. No interest is charged on the other payables for the first 30 days from the date of the invoice or thereafter. 2. For an analysis of the sensitivity of payables to foreign currency risk refer to note 28. Maturity analysis of contractual payables Refer to Note 28 for maturity analysis of contractual payables.

13. Provisions Current provisions expected to be settled within 12 months Employee benefits Annual leave 1,513 1,627 Long service leave 1,465 1,381 Performance payments 292 250 Time off in lieu 69 65 Subtotal 3,339 3,323

Current provision expected to be settled after 12 months Annual leave 955 642 Long service leave 8,912 8,293 Subtotal 9,867 8,935 Total current provisions 13,206 12,258

Annual Report 2011 77 Notes to the Financial Statements

For the year ended 31 December 2011

2011 2010 Note $’000 $’000

Non current provisions Long service leave 1,370 1,353 Total non current provisions 1,370 1,353 Total provisions 14,576 13,611

Movement in provisions Movement in provisions during the financial year are set out below: Carrying amount at the start of the year 13,611 13,684 Additional provisions recognised 2,045 2,339 Amounts used (3,248) (3,090) Increase/(decrease) due to remeasurement 2,168 678 Carrying amount at the end of the year 14,576 13,611

14. Other Liabilities Current Revenue in advance 2,056 2,503 Total current other liabilities 2,056 2,503

78 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

2011 2010 Note $’000 $’000 15. Equity (a) Contributed capital Balance at 1 January 84,978 84,978 Capital contributions 409 0 Balance at 31 December 85,387 84,978

(b) Accumulated surplus/(deficit) Balance at 1 January 86,342 64,540 Net result for the year 6,402 21,802 Balance at 31 December 92,744 86,342

(c) Reserves Composition of reserves Physical asset revaluation surplus 41,024 41,024 Balance at the end of the year 41,024 41,024

Total Equity 219,155 212,344

Movement in reserves Asset revaluation reserve - Land Balance at 1 January 20,335 20,335 Revaluation increment on non-current asset - - Revaluation (decrement) on non-current asset - - Balance at 31 December 20,335 20,335

Asset revaluation surplus - Buildings Balance at 1 January 20,689 20,689 Revaluation increment on non-current asset - - Revaluation (decrement) on non-current asset - - Balance at 31 December 20,689 20,689

Annual Report 2011 79 Notes to the Financial Statements

For the year ended 31 December 2011

2011 2010 Note $’000 $’000

16. Cash flow information Reconciliation of operating result after income tax to net cash flows from operating activities

Net result for the year 6,402 21,802

Non cash flows in operating result Depreciation of non current assets 6,357 5,867 Net gain/(loss) on sale of non current assets 59 11 Assets received free of charge 0 (450)

Movements in operating assets and liabilities Decrease/(increase) in trade receivables 7,868 (6,097) Decrease/(increase) in inventories (9) 4 Decrease/(increase) in other assets (15) 332 Increase/(decrease) in payables 1,954 129 Increase/(decrease) in provisions 965 (73) Net cash flows provided by operating activities 23,581 21,525

17. Ex gratia payments Chisholm Institute of TAFE made a total of $57,995 in ex-gratia payments during 2011 (2010: 217,472).

18. Commitments for expenditure Capital commitments Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows: Payable: Within one year 1,416 10,653 Later than one year but not later than five years 1,261 - Total capital expenditure commitments 2,677 10,653 GST reclaimable on the above 243 968 Net capital commitments 2,434 9,685

Operating lease commitments Operating lease commitments in relation to leases contracted for at the reporting date but not recognised as liabilities are as follows: Payable: Within one year 1,629 1,036 Later than one year but not later than five years 2,536 1,841 Total lease commitments 4,165 2,877 GST reclaimable on the above 379 262 Net operating lease commitments 3,786 2,615

80 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

2011 2010 Note $’000 $’000

Other expenditure commitments Expenditure commitments for maintenance services in existence at reporting date but not recognised as liabilities are as follows:

Payable: Within one year 1,788 5,122 Later than one year but not later than five years 133 1,921 Total other expenditure commitments 1,921 7,043 GST reclaimable on the above 175 640 Net other expenditure commitments 1,746 6,403

Remuneration commitments Commitments for the payment of salaries and other remuneration under long term employment contracts in existence at reporting date but not recognised as liabilities are as follow: Payable: Within one year 6,515 3,971 Later than one year but not later than five years 4,920 1,564 Total remuneration commitments 11,435 5,535

19. Leased Assets Non cancellable operating lease receivables

Receivable: Within one year 333 383 Later than one year but not later five years 250 636 Total lease receivables 583 1,019 GST payable on the above 53 93 Net operating lease receivables 530 926

The Institute leases out certain land, buildings and equipment, which are excess to current requirements at current market rates.

20. contingent assets and contingent liabilities There were no contingent assets or liabilities as at 31 December 2011 (2010: Nil).

21. Economic dependency Chisholm Institute of TAFE has substantial economic dependency on Government operating and capital contributions.

Annual Report 2011 81 Notes to the Financial Statements

For the year ended 31 December 2011

2011 2010 Note $’000 $’000

22. Subsequent events No matters or circumstances have arisen since the end of the reporting period which significantly affected or may significantly affect the operations of the Institute, the results of those operations, or the state of affairs on the Institute in future financial years.

23. Remuneration of auditors Remuneration of Victorian Auditor General’s Office for: Audit of the Chisholm Institute of TAFE financial statements 57 56 Audit of the Caroline Chisholm Education Foundation financial statements 3 3 Remuneration of other auditors 95 97 Total Remuneration of Auditors 155 156

24. Superannuation

The Institute contributes to both defined benefit and defined contribution plans. In accordance with accounting policy 1.13 the Institute does not recognise any defined benefit liabilities. Contributions are included as part of employee benefits in the comprehensive operating statement. The name and details of the major superannuation funds and contributions made by the Institute are as follows:

Emergency Services and State Super Fund (defined benefit) SERB scheme 0 2 Revised scheme- 358 426 New scheme 639 662

Victorian Superannuation Fund (defined contribution) Vic Super 4,278 4,418

Other Superannuation Funds (defined contribution) HESTA 147 119 Australian Super 153 147 Host Plus 93 98 Unisuper 116 104 Health Super 49 51 Other superannuation funds 890 717 Total contribution to all funds 6,723 6,744

As at 31 December 2011 the Institute had $381,597 in outstanding superannuation payments to a number of superannuation funds (2010: $271,406). As at 31 December 2011 there were no loans to the Institute from any funds (2010: Nil).

82 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

25. Key management personnel disclosures In accordance with the directions of the Minister for Finance under the Financial Management Act 1994, the following disclosures are made for the responsible Ministers and responsible Members of the Council.

(i) Minister The relevant Minister is The Hon Peter Hall MP, Minister for Higher Education and Skills. Remuneration of the Ministers is disclosed in the financial statements of the Department of Premier and Cabinet. Other relevant interests are declared in the Register of Members interests which is completed by each member of the Parliament.

(ii) members of the Chisholm Institute of TAFE Board

Name Category of Appointment Relevant Period Mr David Willersdorf (President) Ministerial 01/01/2011 - 31/12/2011 Mr Robert Comelli Ministerial 01/01/2011 - 31/12/2011 Mr David Edgar Ministerial 01/01/2011 - 31/12/2011 Ms Meg Collins-Hughes Ministerial 01/01/2011 - 30/09/2011 Mr Lyndon Joss Ministerial – Industry Member 01/01/2011 - 31/12/2011 Ms Tracey Davies Ministerial – Industry Member 01/01/2011 - 31/12/2011 Prof. Wendy Cross Ministerial – Industry Member 01/01/2011 - 31/12/2011 Mr Peter Malone Elected Staff Member 01/01/2011 - 31/12/2011 Mr Leigh Grant Elected Student Member 01/01/2011 - 31/03/2011 Mr David Muir Elected Student Member 01/04/2011 - 11/10/2011 Mr Greg Hunt Co-opted Member 01/01/2011 - 31/12/2011 Mr David Eynon Co-opted Member 01/01/2011 - 31/12/2011 Mrs Maria Peters Chief Executive Officer 01/01/2011 - 10/04/2011 16/04/2011 - 11/09/2011 29/09/2011 - 31/12/2011 Mr Peter Harrison Chief Executive officer (Acting) 11/04/2011 - 15/04/2011 12/09/2011 - 28/09/2011

(ii) (b) Other Board Committee members:

Name Board Commitee Relevant Period Mr Mel Pecen Audit and Risk Management Committee 01/01/2011 - 31/12/2011 Mr Michael Said Audit and Risk Management Committee 01/01/2011 - 31/12/2011 Mr Robert Johnson Resource Management Committee 01/01/2011 - 31/12/2011

Annual Report 2011 83 Notes to the Financial Statements

For the year ended 31 December 2011

(iii) Executive officers The following persons also had authority and responsibility for planning, directing and controlling the activities of Institute during the financial year:

Name Centre/Division Relevant Period Mr Peter Harrison Deputy Chief Executive Officer 01/01/2011 - 31/12/2011 Mr Grant Radford Director, Corporate Services Division (CFAO) 01/01/2011 - 31/12/2011 Ms Christine Louey Director, International Division 01/01/2011 - 31/12/2011 Mr David Thorsen Director, Organisational Culture and Communications 01/01/2011 - 31/12/2011 Division Mr Chris van der Weyden Director, Technology and Learning Information 01/01/2011 - 30/06/2011 Services Division Mr John Buckler Director, Technology and Learning Information 05/12/2011 - 31/12/2011 Services Division Ms Madelyn Lettieri Director, Centre for Health, Community and Early 01/01/2011 - 31/12/2011 Childhood Education Mr John McKay Director, Centre for Integrated Engineering and 01/01/2011 - 31/12/2011 Science Mr Andrew Kong Director, Centre for Advanced Business Services 01/01/2011 - 31/12/2011 Mr Malcolm Macpherson Director, Centre for Sustainable Technologies 01/01/2011 - 31/12/2011 Ms Leanne Jenkins Director, Centre for Services and Arts Industries 01/01/2011 - 31/12/2011 Mr Nigel Hill Director, Youth and Regional Partnerships 01/01/2011 - 29/04/2011 Ms Anne Consentino Director, Centre for Vocational Pathways 01/01/2011 - 31/12/2011

Remuneration of Board Members

This includes remuneration received, or due and receivable from the Institute in connection with the Management of the Institute. This includes termination payments and bonuses paid at the end of contracts.

2011 2010 Note $’000 $’000 Remuneration of Board members 292 331

Income Range

The number of Board members whose remuneration from the Institute was within the specified bands are as follows:

2011 2010 $0 2 2 Less than $10,000 9 8 $10,000-$29,999 1 1 $100,000-$199,999 0 2 $240,000- $249,999 1 - Total number of Board members 13 13

84 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

Executive Officers’ Remuneration

2011 2010 Note $’000 $’000 Base remuneration of Executive Officers 1,753 1,679 Total Remuneration of Executive Officers 1,843 1,776

Income Range

The number of executive officers whose total remuneration exceeded $100,000 during the financial year are shown in their relevant income bands. The base remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits.

2011 2011 2010 2010 Base Total Base Total $140,000 - $149,999 4 - 8 4 $150,000 - $159,999 4 5 1 4 $160,000 - $169,999 1 3 1 1 $170,000 - $179,999 - 1 - 1 $180,000 - $189,999 1 1 - - $210,000 - $219,999 - - 1 - $220,000 - $229,999 - - - 1 $240,000 - $249,999 - - - - Total number of Executive Officers 10 10 11 11

2011 2010 Note $’000 $’000 Executive Officers’ personnel compensation Short-term employee benefits 136 130 Post-employment benefits Other long-term benefits 7 11 Termination benefits Share-based payments Total key management personnel compensation 143 141

Annual Report 2011 85 Notes to the Financial Statements

For the year ended 31 December 2011

26. Related parties (a) key Management Personnel Disclosures relating to Executives are set out in Note 24.

(b) Other related party transactions

2011 2010 Note $’000 $’000 Creditor - Caroline Chisholm Education Foundation (CCEF) 37 460

Related Party, CCEF Revenue Administration charge 6 3

Related Party CCEF Expenditure Donations 104 107 Resources provided free of charge 89 126 Total Related Party, CCEF expenditure 193 233

27. Institute details The registered office of and principal place of business of the Institute is:

Chisholm Institute of TAFE 121 Stud Road Dandenong VIC 3175

86 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

28. Financial Instruments Financial risk management

(i) Financial risk management objectives The Institute’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Institute’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Institute by adhering to principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity.

Compliance with policies and exposure limits is reviewed by management on a continuous basis. The Institute does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

The Institute uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and credit risk, ageing analysis for credit risk and data analysis in respect of investment portfolios to determine market risk.

The Institute’s treasury function provides services to its business units, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Institute through internal risk reports which analyses exposures by degree and magnitude of risks. These risks include market (including currency risk and fair value interest rate risk), credit risk and liquidity risk.

(ii) Financial risk exposures and management The Institute’s financial instruments consist mainly of deposits with banks, local money market instruments, short term investments, accounts receivables and payables and leases.

The main risks the Institute is exposed to through its financial instruments are market risk, foreign currency risk, price risk, funding risk, interest rate risk, credit risk and liquidity risk.

(iii) Categorisation of financial instruments Carrying amount of financial instruments by category:

2011 2010 Financial assets Note Category $’000 $’000

Cash and Deposits 5 Cash 26,377 13,686

Loans and Receivables 6, (a) 4,802 12,099 receivables

Other financial Floating rate notes 7 - 2,000 assets

Financial liabilities

Creditors and accruals 12, 14 Financial liabilities 9,686 7,883

Annual Report 2011 87 Notes to the Financial Statements

For the year ended 31 December 2011

Net holding gain/(loss) on financial instruments by category:

2011 2010 Financial assets Note Category $’000 $’000

Cash and Deposits 5 Cash - -

Loans and Receivables 6, (a) receivables (13) 0

Other financial Floating rate notes 7 assets - -

Financial liabilities

Creditors and accruals 12, 14 Financial liabilities - -

(a) Receivables and payables disclosed here exclude statutory receivables and statutory payables.

Market risk The Institute in its daily operations is exposed to a number of market risks. Market risks relate to the risk that market rates and prices will change and that this will have an adverse affect on the operating result and /or net worth of the Institute.

The Board ensures that all market risk exposure is consistent with the Institute’s business strategy and within the risk tolerance of the Institute. Regular risk reports are presented to the Board.

There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing market risk or the methods used to measure this risk from the previous reporting period.

Foreign currency risk The Institute does not have any foreign currency bank accounts denominated in foreign currency at 31 December 2011.

The amount of trade receivables denominated in foreign currency at 31 December 2011 is immaterial.

There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing foreign currency risk or the methods used to measure this risk from the previous reporting period.

Price risk The Institute is exposed to price risk in respect of changes to the market price of investments.

There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing price risk or the methods used to measure this risk from the previous reporting period.

Interest rate risk Interest rate risk arises from the potential for a change in interest rates to change the expected net interest earnings in the current reporting period and in future years. Similarly, interest rate risk also arises from the potential for a change in interest rates to cause a fluctuation in the fair value of the financial instruments.

The objective is to manage the rate risk to achieve stable and sustainable net interest earnings in the long term. This is managed predominately through a mixture of short term and longer term investments with AA rated banking institutions.

88 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

Interest rate movements have not been sufficiently significant during the year to have an impact on the Institute’s year end result.

The Institute’s exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities, both recognised and unrecognised at balance date are set out in the financial instrument compositions and maturity analysis table.

Funding risk Funding risk is the risk of over reliance on a funding source to the extent that a change in that funding source could impact on the operating result for the current year and future years.

The Institute manages funding risk by continuing to diversify and increase funding from Commercial activities, both domestically and off shore.

There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing funding risk or the methods used to measure this risk from the previous reporting period.

Credit risk Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in a loss to the Institute.

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance sheet and notes to the financial statements.

There is no material amounts of collateral held as security at 31 December 2011.

Credit risk is reviewed regularly by the Financial Services department. It arises from exposure to customers as well as through certain deposits with financial institutions.

The Financial Services department monitors credit risk by actively assessing the rating quality and liquidity of counter parties and the Institute seeks to mitigate credit risk by ensuring:

• Only banks and financial institutions with an ‘AAA’ rating are utilised • All potential non student customers are rated for credit worthiness taking into account their size, market position and financial standing; and • Customers that do not meet the Institute’s credit policies may only purchase in cash or using recognised credit cards. The Institute does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into by the Institute.

The trade receivables balance at 31 December 2011 and 31 December 2010 do not include any counter parties with external credit ratings.

Liquidity risk Ultimate responsibility for liquidity risk management rests with the institute’s governing body, which has built an appropriate liquidity risk management framework for the management of the short, medium and long-term funding and liquidity requirements. The institute manages liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing liquidity risk or the methods used to measure this risk from the previous reporting period.

Annual Report 2011 89 Notes to the Financial Statements

For the year ended 31 December 2011

(iv) Summarised sensitivity analysis The following table summarises the sensitivity of the Institute’s financial assets and financial liabilities to interest rate risk and credit risk:

Interest rate risk

-0.50% 1.00% Carrying amount Result Equity Result Equity 31 December 2011 $’000 $’000 $’000 $’000 $’000

Financial assets

Cash and deposits 26,377 (132) (132) 264 264

Receivables1 4,802

Other financial assets -

Financial liabilities

Payables1 9,686

Total increase/ (decrease) (132) (132) 264 264

Interest rate risk

-0.50% 1.00% Carrying amount Result Equity Result Equity 31 December 2011 $’000 $’000 $’000 $’000 $’000

Financial assets

Cash and cash equivalents 13,686 (68) (68) 171 171

Receivables1 12,099

Other financial assets 2,000 (10) (10) 25 25

Financial liabilities

Payables1 7,883

Total increase/ (decrease) (78) (78) 196 196

Total increase/ (decrease) (132) (132) 264 264

1 Receivables and payables disclosed here as financial instruments exclude statutory receivable and statutory payables.

90 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

(v) Financial instrument composition and interest rate exposure The tables below reflect the undiscounted contractual settlement terms for financial instruments of a fixed period of maturity, as well as management’s expectations of the settlement period for all other financial instruments. Additionally, the total amount of financial assets disclosed excludes statutory receivables. Due to the aforementioned factors, the amounts below may not reconcile to the balance sheet.

Weighted Fixed Floating Non- Total average interest Interest 1 to 6 6 to 12 Over 12 interest carrying effective rate Rate months months months bearing amount 2011 rate $’000 $’000 $’000 $’000 $’000 $’000 $’000

Financial assets

Cash and deposits

Cash on hand 10 10

Cash at bank 3.63% 2,652 2,652

Deposits at call 4.84% 23,715 23,715

Floating rate note

Receivables*

Trade debtors 1,847 1,847

Other debtors 2,955 2,955

Other financial assets

Floating rate notes

Total financial assets 26,367 4,811 31,179

Financial liabilities

Trade and other payables

Creditors and accruals (9,686) (9,686)

Total financial liabilities (9,686) (9,686)

Annual Report 2011 91 Notes to the Financial Statements

For the year ended 31 December 2011

Weighted Fixed Floating Non- Total average interest Interest 1 to 6 6 to 12 Over 12 interest carrying effective rate Rate months months months bearing amount 2010 rate $’000 $’000 $’000 $’000 $’000 $’000 $’000

Financial assets

Cash and cash equivalents

Cash on hand 10 10

Cash at bank 4.13% 2,385 2,385

Deposits at call 4.94% 8,301 8,301

Floating rate note 5.22% 3,000 3,000 3,000

Receivables*

Trade debtors 1,881 1,881

Other debtors 10,218 10,218

Other financial assets

Floating rate notes 5.32% 2,000 2,000 2,000

Total financial assets 15,686 3,000 2,000 12,109 27,795

Financial liabilities

Trade and other payables

Creditors and accruals (7,883) (7,883)

Total financial liabilities (7,883) (7,883)

92 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

(vi) Ageing analysis of financial assets There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The following table discloses the contractual maturity analysis for the Institute’s financial assets and financial liabilities.

Maturity dates Not past due 1‑3 3 months Impaired Carrying and not financial amount impaired Month 1 year 1‑5 years assets $’000 $’000 $’000 s $’000 $’000 $’000

2011 financial assets

Receivables:

Trade receivables 1,834 761 890 130 53 13

Other receivables 2,968 2,968

Total financial assets 4,802 3,729 890 130 53 13

2011 financial liabilities

Payables:

Trade and other payables 9,686 9,686

Total financial liabilities 9,686 9,686 0 0 0 0

2010 financial assets

Receivables:

Trade receivables 1,793 1,076 466 188 63 44

Other receivables 10,306 10,306 323

Total financial assets 12,099 11,382 466 188 63 367

2010 financial liabilities

Payables:

Trade and other payables 7,883 7,883

Total financial liabilities 7,883 7,883 0 0 0 0

Fair Value The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. Due to the short-term nature of the current receivables and payables, their carrying value is assumed to approximate their fair value. Based on credit history it is expected that the receivables that are neither past due nor impaired will be received when due.

For other assets and other liabilities the fair value approximates their carrying value. Financial assets where the carrying amount exceeds fair value have not been written down as the Institute intends to hold these assets to maturity.

Annual Report 2011 93 Notes to the Financial Statements

For the year ended 31 December 2011

Total carrying amount as per the balance sheet Net fair value

2011 2010 2011 2010 Financial Assets $’000 $’000 $’000 $’000

Cash at bank and on hand 2,662 2,395 2,662 2,395

Deposits at call 23,715 8,301 23,715 8,301

Receivables- debtors 1,834 1,793 1,834 1,793

Receivables- other debtors 2,968 10,306 2,968 10,306

Floating rate notes 5,000 5,000

Total financial assets 31,178 27,795 31,178 27,795

Financial Liabilities

Creditors and accruals 9,686 7,883 9,686 7,883

Total financial liabilities 9,686 7,883 9,686 7,883

The following tables provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.

• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities • Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) • Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). Fair value measurements recognised in the balance sheet are categorised into the following levels:

Level 1 Quoted Prices

2011 2010 $’000 $’000

Financial Assets Floating rate notes - 5,000 Total financial assets 0 5,000

94 Chisholm Institute Annual Report 2011 95 96 Chisholm Institute DECLARATION BY PRESIDENT OF THE BOARD, CHIEF EXECUTIVE OFFICER AND CHIEF FINANCE AND ACCOUNTING OFFICER

In our opinion, the accompanying Statement of Performance of Chisholm Institute of TAFE in respect of the 2011 financial year is presented fairly in accordance with the Financial Management Act 1994.

The Statement outlines the performance indicators as determined by the responsible Minister, pre-determined targets and the actual results for the year against these indicators, and an explanation of any significant variance between the actual results and performance targets.

As at the date of signing, we are not aware of any circumstance which would render any particulars in the Statement to be misleading or inaccurate.

David Willersdorf Maria Peters Grant Radford President of the Board Chief Executive Officer Chief Finance and Accounting

29 February 2012 29 February 2012 29 February 2012 Place: Dandenong Place: Dandenong Place: Dandenong

Annual Report 2011 97 Performance Statements

For the year ended 31 December 2011

Key Performance Indicator Definition 2011 2011 2010 Result Actual Target Actual Participation of Number of students within Not achieved 19,265 20,439 20,439 15-24 year olds the age group (a)

Participation of Number of students within Not achieved 21,161 22,830 22,830 25-64 year olds the age group (a)

Rate scheduled hours assessed as passed or satisfactorily completed/total Module load completion scheduled hours reported 83.96% 75.62% 75.62% Achieved less hours recorded with credit transfer and continuing studies outcomes

Student satisfaction Student satisfaction 71.60% - 75.30% (b)

Total funded expenditure Total cost per student contact Not achieved (excluding depreciation)/total $11.04 10.39 $10.72 hour (SCH) (d) SCH

Current assets/current liabilities (adjusted for non- Working capital ratio 2.26 1.75 2.39 Achieved current employee benefit liabilities) Funded operating surplus/ Net operating margin total revenue (excl capital and 5.74% 2.80% 4.35% Achieved exp from capital)

Fee for service revenue Fee for service revenue 25,029,913 25,450,000 28,638,389 Not achieved (c)

Total revenue (excl. capital)/ Revenue per EFT staff $120,078 $107,591 $109,134 average EFT staff

Not achieved Student contact hours (SCH) 11,194,353 11,799,229 11,799,229 (d)

Percentage reduction in energy consumption. (2010 Not achieved Energy consumption 4% (15%) (14%) cons. - 2007 cons.)/2007 (e) consumption

98 Chisholm Institute Performance Statements – notes

For the year ended 31 December 2011 (a) The 2011 age related participation target are based on prior year results. Whilst age participation is still being monitored by the Victorian Government, they were not included in the 2011 Partnership and Service Agreements between the Victorian Skills Commission and the Institute. Age related participation targets have been superseded by Youth Compact targets which were the Institute’s focus in 2011. In succeeding years the Institute has improved the engagement of Victorian training guarantee students

(b) Student satisfaction is one of the national quality indicators; it is a new KPI and uses a new survey tool. No comparative data was available between the years or with other training providers to enable the Institute to set an informed performance target for 2011

(c) The Institute’s fee for service actual performance was slightly below the target. The Institute’s 2011 fee for service target was lower than the 2010 fee for service actual in recognition of declining International Student revenue; however 2011 International Student revenue exceeded the reduced target. Below target domestic fee for service revenue was the cause of the Institute not achieving this target

(d) The decrease in student contact hours largely reflects the downturn in International Onshore activity as a result of the global financial crisis and changes to government policy

(e) The guidelines require details of energy consumption using 1999 as a base year. This information is not available for the former Chisholm Institute. Chisholm’s 15% reduction in energy consumption is an internally set target based on 2007 as the base year. The Institute has not achieved this target as a result of a 13% increase in square meters; 21% increase in student contract hours; increase in operating hours to cope with additional evening and weekend activity; and the full operation of new building stock. Refer the Environmental Sustainability report in Chisholm’s 2011 Annual Report for additional detail.

Annual Report 2011 99 Caroline Chisholm ECduarolinecation Chisholm Education FFoundationoundation FinancialFinancial Report Report

100 Chisholm Institute Caroline Chisholm Education Foundation

“I promise to know neither country nor creed, but to serve all justly and impartially”

The Caroline Chisholm On her arrival in the new Education Foundation Australian colony in 1838, is a further example of Caroline Chisholm was Chisholm’s commitment to compelled to help change the social responsibility. The appalling conditions of poor, Caroline Chisholm Education vulnerable migrants. Chisholm Caroline Chisholm Foundation is an independent Institute of TAFE proudly bears charitable trust established the name of this true pioneer. Picture courtesy National Library of Australia by Chisholm Institute of TAFE Her sentiment echoes the role to provide education grants of the VET sector and of those to disadvantaged members of committed staff who work in our community. The formation the region served by Chisholm. of the Caroline Chisholm The Foundation strives to Education Foundation was continue Caroline Chisholm’s inspired by the activism, energy legacy of social justice and ‘can do’ approach of this by providing support to remarkable woman. disadvantaged students and members of the Chisholm Institute community.

Management of the Caroline Chisholm Education Foundation

The Caroline Chisholm Education Foundation operates under a Trust Deed approved by the Board of Chisholm Institute of TAFE. The Trustees were appointed by the Board. The Trustees during 2011 were:

Ms Meg Collins-Hughes, (Chairperson) Mr Grant Radford Mr Alan Burns Ms Virginia Simmons Mr Fred Hamilton Mr Roy Smalley Mrs Maria Peters Ms Mandy Splatt Ms Christine Powell/ Ms Kate Oxenbould Mr Charles Wilkins Mr David Willersdorf

Annual Report 2011 101 Caroline Chisholm Education Foundation

Building Foundation Funds Ambassador Scheme • During 2011 the total net revenue of the Foundation was Since 2008 Chisholm Institute staff members have volunteered $129,355 to be ‘Ambassadors’ taking on a mentoring role with scholarship • Chisholm Institute of TAFE continued to contribute five and bursary holders. At the Ambassador Network Dinner held on per cent of its investment interest income to the Caroline 10 November 2010, Trustees heard more about grant holders Chisholm Education Foundation in 2011. This contribution from Ambassadors and concurred that the experience for them totalled $49,104 was extremely uplifting. With the substantial increase in grant recipients the Foundation will seek more Ambassadors annually. • Donations to the Caroline Chisholm Education Foundation to fund 2011/2012 grants came from individuals, businesses, Rotary Clubs, Chisholm Institute staff and Fundraisers students A number of fundraising events were held throughout the year. • The aim of the Foundation is to raise $100,000 plus a year They included the International Women’s Day Lunch, Annual and over time build to a funding base of $1,000,000 Charity Golf Day, Christmas in July Dinner and Degustation Dinner sponsored by Montalto Restaurant. Caroline Chisholm Education • Chisholm Institute of TAFE administers the fund at no cost Foundation Christmas Cards were once again sold to provide to the Caroline Chisholm Education Foundation funding towards a Christmas Scholarship. Reserved parking spaces • A Board of Trustees chaired by an independent chair and at the Frankston, Dandenong and Berwick campuses were raffled comprised of representatives from the broader Chisholm at the end of 2011 and with proceeds from the Chisholm Institute community and Chisholm Institute of TAFE Board and staff Christmas Party raffle, funded the Chisholm Staff Scholarship. members is responsible for the governance of the Caroline Chisholm Education Foundation. 2011 Caroline Chisholm Education Foundation Grants Distribution of Foundation Grants Students receive funding for tuition, amenities and materials fees Grants are available to assist individuals and groups where social or for programs undertaken as well as study support items such financial circumstances are impeding engagement in education and as computers and printers, travel and child care where deemed training. These include: appropriate.

• Scholarships and bursaries • Projects and initiatives • Scholarships for full fee paying university for Chisholm Institute of TAFE graduates.

Access to funding is subject to eligibility according to the Foundation’s Grant Disbursement Principles and particular grant guidelines.

102 Chisholm Institute 2011 Grants In 2011 there were 198 grants, amounting to $165,192 in funding, awarded to students requiring assistance to pay for fees across a broad range of categories and with varying criteria. Grants ranged from $500 to $2,500 and were awarded to students undertaking ESL, pre-apprenticeships and apprenticeships, certificates, diplomas, advanced diplomas and projects such as the CREW@Chisholm program incorporating Certificate II in General Education for Adults and the Certificate II in Automotive Studies. Grants were:

African Scholarship Grocon & VicUrban Scholarship African Community Scholarship (Rotary Club Hospitality Scholarship of North Melbourne) HQRA Scholarship Automotive Scholarship Ian Tatterson Scholarship Avaxa Scholarship Information Technology Scholarship Bass Coast Travel Scholarship International Women’s Day Scholarship Berwick TEC Bursary KCG Scholarship, PCEA Scholarship and Box Stallion Scholarship DVCEA Scholarship Building/Construction Scholarship Killen Scholarship Business Studies Scholarship Leon Riley Scholarship (Rotary Club of Sorrento) Business Writing Scholarship Montalto Scholarship CAD Scholarship Patisserie Scholarship Children’s Services Scholarship Peter Wylie Memorial Scholarship Chisholm Board of Directors’ Scholarship (Rotary Club of Ferntree Gully) Chisholm Staff Scholarship Porsche Club Scholarship Christmas Scholarship Retail Scholarship City of Greater Dandenong Scholarship Regional Scholarship Commercial Cookery Scholarship Roden Scholarship Community Health Scholarship Rotary Berwick Scholarship Community Health Services Scholarship Rotary Club of Chelsea Scholarship Consolidated Insurance Agencies Scholarship Rotary Club of Endeavour Hills Construction/Plumbing Scholarship Rotary Club of Frankston Scholarship Crew Scholarship Rotary Club of Keilor Scholarship Customer Service/Logistics Scholarship Rotary Club of Rosebud Scholarship Dandenong Campus Network Scholarship Sandra George Manufacturing Industry Award (Perpetual) Dandenong Tax Office Staff Scholarship Sorrento Sea Baths Scholarship Emerson Scholarship Sue Polgar Memorial Scholarship Engineering/ Manufacturing Scholarship Tigertune Scholarship Engineering/ Welding Scholarship Trade Scholarship FGB Natural Products Scholarship Virginia Simmons Perpetual Scholarship Fuji Xerox Scholarship Yellow Pages Scholarship Garry Rogers Motorsport Scholarship

Grenda Scholarship

Annual Report 2011 103 104 Chisholm Institute Annual Report 2011 105 DECLARATION BY PRESIDENT OF THE CHISHOLM INSTITUTE OF TAFE BOARD, CHAIRPERSON AND CHIEF FINANCE AND ACCOUNTING OFFICER

We certify that the attached financial statement for Caroline Chisholm Education Foundation (CCEF) has been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions issued under that legislation, Australian Accounting Standards and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and notes to and forming part of the financial statement, presents fairly the financial transactions during the year ended 31 December 2011 and financial position of the Foundation as at 31 December 2011.

At the date of signing this financial statement, we are not aware of any circumstance that would render any particulars included in the financial statement to be misleading or inaccurate. There are reasonable grounds to believe that the Foundation will be able to pay its debts as and when they became due and payable.

The Authorised Trustees sign this declaration as delegates of, and in accordance with a resolution of, the Trustees of Caroline Chisholm Education Foundation.

David Willersdorf Virginia Simmons Grant Radford President of the Institute Board Chairperson Chief Finance and Accounting Officer Chisholm Institute of TAFE Caroline Chisholm Education Foundation Chisholm Institute of TAFE

29 February 2012 29 February 2012 29 February 2012 Place: Dandenong Place: Dandenong Place: Dandenong

106 Chisholm Institute Comprehensive Operating Statement

For the year ended 31 December 2011

2011 2010 Note $’000 $’000 Continuing operations Income from transactions Donations received from Chisholm Institute of TAFE 103,832 107,058 Donations received from other sources 193,722 59,269 Interest Revenue 19,086 5,646 Resources received free of charge 88,239 126,479 Total income from transactions 404,879 298,452

Expenses from transactions Employee benefits 77,410 99,487 Scholarships 165,192 59,146 Administration charge 6,309 3,439 Audit fees 4 3,100 3,000 Consumables 5,038 - Fees and charges 500 Promotional expenses 13,672 14,273 Travel and motor vehicle charges 172 1,802 Other expenses 4,631 7,417 Total expenses from transactions 275,524 189,064

Net result from transactions 129,355 109,388

Comprehensive result 129,355 109,388

The above comprehensive operating statement should be read in conjunction with the accompanying notes.

Annual Report 2011 107 Balance Sheet

As at 31 December 2011

2011 2010 Note $’000 $’000 Assets Financial assets Cash and cash equivalents 678,647 126,134 Receivables 36,849 460,007 Total financial assets 715,496 586,141

Total Assets 715,496 586,141

Net assets 715,496 586,141

Equity Accumulated surplus/(deficit) 715,496 586,141 Total equity 715,496 586,141

Commitments 3 Contingencies 5

The above balance sheet should be read in conjunction with the accompanying notes.

Statement of Changes in Equity

For the year ended 31 December 2011 2011 2010 Note $’000 $’000 Accumulated surplus/(deficit) Accumulated surplus/(deficit) at the beginning of the year 586,141 476,753 Comprehensive result for the year 129,355 109,388 Adjustment due to changes in accounting policy Accumulated surplus/(deficit) at the end of the year 715,496 586,141

Total equity at the end of the year 715,496 586,141

The above statement of changes in equity should be read in conjunction with the accompanying notes

108 Chisholm Institute Cash Flow Statement

For the year ended 31 December 2011

2011 2010 Note $’000 $’000 Cash flows from operating activities Receipts Donations 297,553 - Interest received 19,086 5,646 Other income – (Chisholm receivable) 423,158 Total Receipts 739,797 5,646

Expenditure Scholarships paid 165,192 - Other Expenses paid 22,092 Total Expenditure 187,284 -

Net cash provided by/ (used in) operating activities 2 552,513 5,646

Net increase/(decrease) in cash and cash equivalents 552,513 5,646

Cash and cash equivalents at the beginning of the financial year 126,134 120,488

Cash and cash equivalents at the end of the financial year 678,647 126,134

The above cash flow statement should be read in conjunction with the accompanying notes.

Annual Report 2011 109 Notes to the Financial Statements

For the year ended 31 December 2011

1. statement of significant accounting policies The financial statement is a general purpose financial statement which has been prepared on an accrual basis in accordance with the Financial Management Act 1994, applicable Australian Accounting standards and Interpretations (AASs) and other mandatory professional requirements. AASs include Australian equivalents to International Financial Reporting Standards.

1.01 Basis of preparation The following is a summary of the material accounting policies adopted by the Caroline Chisholm Education Foundation (CCEF) in the preparation of the financial statement. The accounting policies have been consistently applied unless otherwise stated.

Reporting basis and conventions

The financial statement has been prepared on a historical cost basis.

1.02 cash and cash equivalents Cash and cash equivalents comprise cash on hand and cash at bank. For the purpose of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of bank overdrafts. Bank overdrafts are included in interest bearing liabilities in the Balance Sheet.

1.03 Receivables Receivables consist entirely of amounts held by Chisholm Institute of TAFE on behalf of the CCEF. Receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective rate of interest method, less any accumulated impairment.

1.04 Revenue recognition Donations received from Chisholm Institute of TAFE

Donations received from Chisholm Institute of TAFE are recognised as revenue in the period when CCEF gains control of the donation. Control is recognised upon receipt. In accordance with the Operating Agreement between CCEF and Chisholm Institute of TAFE, 5% of interest earned by Chisholm Institute of TAFE is donated to the CCEF. Chisholm Institute of TAFE also donates income earned from fundraising activities it holds on behalf of the CCEF.

Donations received from other sources

Donations received from other sources are recognised as revenue in the period when the CCEF gains control of the donation. Control is recognised upon receipt of the donation. Donations received from other sources include donations from industry, the community and Chisholm Institute of TAFE staff.

Resources received free of charge

Resources received free of charge are recognised as revenue when the Foundation gains control of them. The benefits derived from these resources are recorded at their fair value in the financial statements. In accordance with Operating Agreement between CCEF and Chisholm Institute of TAFE, Chisholm Institute of TAFE is responsible for all operating expenses of the CCEF.

Interest Revenue

Interest revenue from cash, short term deposits and investments is brought to account on a time proportional basis taking into account interest rates applicable to the relevant financial assets.

110 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

1.05 Expenses Employee Benefits

Employee benefit expenses are recognised when incurred.

Scholarships

Scholarships are recognised as an expense when they are incurred.

Administration charge

The administration charge is recognised as an expense in the period when the amount becomes payable to Chisholm Institute of TAFE. In accordance with Operating Agreement between CCEF and Chisholm Institute of TAFE, 2 per cent of Donation income is payable to Chisholm Institute of TAFE for administration of the CCEF accounts.

1.06 Commitments Commitments include scholarships awarded to students for future years. Commitments are disclosed at their nominal values.

1.07 contingent assets and liabilities Contingent assets and liabilities are not recognised in the balance sheet, but are disclosed by way of a note and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable.

Annual Report 2011 111 Notes to the Financial Statements

For the year ended 31 December 2011

2011 2010 Note $’000 $’000 2. cash flow information Reconciliation of operating result to cash flows from operating activities

Net operating result for the year 129,355 109,388

Change in operating assets and liabilities Decrease/ (increase) in receivables 423,158 (103,742) Net cash flows from operating activities 552,513 5,646

3. Commitments Scholarship Outstanding Scholarships are payable as follows: Payment due Not later than one year 17,717 26,411 Later than one year and not later than five years 8,000 17,717 34,411 4. Auditor’ Remuneration In accordance with Operating Agreement between CCEF and Chisholm Institute of TAFE, Chisholm Institute of TAFE is responsible for Audit expenses. Victorian Auditor-General’s Office Audit of the financial statement 3,100 3,000

5. Contingencies

At balance date, the Foundation had no contingent assets or contingent liabilities (2010: Nil).

112 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

6. Key management personnel disclosures In accordance with the directions of the Minister for Finance under the Financial Management Act 1994, the following disclosures are made for the responsible Ministers and responsible Members of Council.

(i) Minister The relevant Minister is The Hon Peter Hall MP, Minister for Higher Education and Skills. Remuneration of the Ministers is disclosed in the financial statement of the Department of Premier and Cabinet. Other relevant interests are declared in the Register of Members interests which is completed by each member of the Parliament.

(ii) Trustees of the Caroline Chisholm Education Foundation The following persons were responsible persons and trustees of the Foundation during the year:

Name Category of Appointment Relevant Period Ms Virginia Simmons Trustee 01/01/2011 - 31/12/2011 Ms Virginia Simmons Chairperson 16/11/2011 - 31/12/2011* Ms Meg Collins-Hughes Chairperson 01/01/2011 - 19/08/2011* Ms Meg Collins-Hughes Trustee 20/08/2011 - 31/12/2011 Mr Alan Burns Trustee 01/01/2011 - 01/11/2011 Ms Kate Oxenbould Trustee 01/05/2011 - 31/12/2011 Ms Christine Powell Trustee 01/01/2011 - 01/05/2011 Mr Fred Hamilton Trustee 01/01/2011 - 31/12/2011 Mr Grant Radford Trustee 01/01/2011 - 31/12/2011 Mrs Maria Peters Trustee 01/01/2011 - 31/12/2011 Mr Roy Smalley Trustee 01/01/2011 - 31/12/2011 Ms Mandy Splatt Trustee 01/01/2011 - 31/12/2011 Mr David Willersdorf Trustee 01/01/2011 - 31/12/2011 Mr Charles Wilkins Trustee 01/01/2011 - 31/12/2011

* Ms Meg Collins-Hughes resigned as chairperson in the August CCEF trustee meeting. Ms Virginia Simmons was acting Chairperson until approved as the Chairperson by the Chisholm Board of Directors in November 2011.

Annual Report 2011 113 Notes to the Financial Statements

For the year ended 31 December 2011

2011 2010 Note $’000 $’000 7. Related parties Debtor – Chisholm Institute 36,349 460,007 36,349 460,007 Intercompany revenue Donations 103,832 107,058 Resources provided free of charge 88,239 126,479 192,071 233,537 Intercompany expenditure Administration charge 6,308 3,439 6,308 3,439

8. Financial Instruments Terms, conditions and accounting policies

CCEF’s accounting policies, including the terms and conditions of each class of financial asset, financial liability and equity instrument, both recognised and unrecognised at reporting date, are as follows:

Recognised financial instruments Note Accounting policies Terms and conditions

Financial assets

Cash and cash equivalents – Deposits at call 1.02 Deposits at call are carried at their Deposits at call have an effective nominal amounts. Interest revenue interest rate of 4.9% is recognised in the operating statement when it is earned

Receivables 1.03 Related party receivable is carried – Related party receivable at the nominal amount

114 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

(a) Financial instrument compositions and maturity analysis The tables below reflect the undiscounted contractual settlement terms for financial instruments of a fixed period of maturity, as well as management’s expectations of the settlement period for all other financial instruments. Additionally, the total amount of financial assets disclosed excludes statutory receivables. Due to the aforementioned factors, the amounts below may not reconcile to the balance sheet.

Floating interest Non- interest Total carrying Weighted average rate bearing amount 2011 effective rate $ $ $

Financial assets

Cash and cash

Deposits at call 4.9% 678,647 678,647

Receivables

Related party receivable 36,349 36,349

Total financial assets 678,647 36,349 714,996

Floating interest Non- interest Total carrying Weighted average rate bearing amount 2010 effective rate $ $ $

Financial assets

Cash and cash equivalents

Deposits at call 4.75% 126,134 126,134

Receivables

Related party receivable 460,007 460,007

Total financial assets 126,134 460,077 586,141

Annual Report 2011 115 Notes to the Financial Statements

For the year ended 31 December 2011

(b) Sensitivity analysis The following table summarises the sensitivity of the Foundation’s financial assets and financial liabilities to interest rate risk:

Interest rate risk

-0.50% +1.00% Carrying amount Result Equity Result Equity 31 December 2011 $ $ $ $ $

Financial assets

Cash and cash equivalents 678,647 (3,393) (3,393) 6,786 6,786

Total increase/(decrease)

Interest rate risk

-0.50% +1.00% Carrying amount Result Equity Result Equity 31 December 2010 $ $ $ $ $

Financial assets

Cash and cash equivalents 126,134 (631) (631) 1,261 1,261

Total increase/(decrease) 126,134 (631) (631) 1,261 1,261

Fair Value

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.

Due to the short-term nature of the receivables their carrying value is assumed to approximate their fair value. Receivables are neither past due nor impaired will be received when due.

Financial risk management

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument is disclosed in note 1 of the financial statements

(i) Financial risk management objectives The Foundation’s activities only expose it to interest rate risk. The Foundation relies on Chisholm’s treasury function to monitor interest rates and minimise potential adverse effect on the financial performance of the CCEF by adhering to the Institute’s Investment Strategy parameters.

116 Chisholm Institute Notes to the Financial Statements

For the year ended 31 December 2011

(ii) Financial risk exposures and management The Foundation’s financial instruments consist of deposits at call and a related party receivable. The main risk to the Foundation is exposed to through its financial instruments is interest rate risk.

Interest rate risk

Interest rate risk arises from the potential for a change in interest rates to change the expected net interest earnings in the current reporting period and in future years. Similarly, interest rate risk also arises from the potential for a change in interest rates to cause a fluctuation in the fair value of the financial instruments.

The objective is to manage the rate risk to achieve stable and sustainable net interest earnings in the long term. This is managed predominately through a mixture of short term and longer term investments with AA rated banking institutions.

The Foundation’s exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities, both recognised and unrecognised at balance date are set out in the financial instrument compositions and maturity analysis table.

Credit risk

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in a loss to the Institute.

There is no credit risk to the related party receivable.

Annual Report 2011 117 Compulsory non academic student fees income and expenditure statement for the year ended 31 December 2011

Chisholm Institute of TAFE imposes a compulsory non-academic fee known as the “Student Services and Amenities Fee” for the purposes of providing additional student services and amenities. The 2001 fee was calculated on the basis of 21cents per enrolled student contact hour in Government funded accredited courses with a maximum fee of $82 and a minimum fee of $26. Certain concessions and exemptions apply. The collection and expenditure of the fees is subject to the provisions of the Ministerial Directions on Fees and Charges and Division 3 of the Tertiary Education Act 1993.

2011 2010 $ $ Income Student Service and Amenities Fees annual revenue 713,389 783,221 Ancillary Trading and Other 103,019 44,405 Total Income 816,408 827,626

Less Expenditure Amenities & Facilities 142,278 - Recreational Services 72,972 88,259 Induction & Transition 26,712 56,346 Unit Operations (including salaries) 377,950 377,996 Liaison Services 17,762 59,042 Student Representation Support 328 4,138 Clubs and Collectives - 9,212 Leadership & Skills Program 4,039 2,854 Internal Subsidies 2,465 91,183 Ancillary Trading and Other 23,818 - 668,324 689,030

Fund (Deficit)/Surplus for Year 148,084 138,596 Fund Surplus from Previous Year 140,486 1,890 Fund Surplus at 31 December 288,570 140,486

Certification I certify that the information contained in this statement is in I further certify that this statement is prepared on the same accordance with the accounting records of Chisholm Institute of basis as the audited Financial Report for Chisholm Institute of TAFE and that expenditure of funds is in accordance with the TAFE for the year ended 31 December 2011. Ministerial Directions on Fees and Charges and Division 3 of the Tertiary Education Act 1993.

Grant Radford Chief Finance and Accounting Officer Chisholm Institute of TAFE

29 February 2012

118 Chisholm Institute Activity table

The Activity Table is provided for National Financial Reporting purposes. The information provided in this statement is reporting on the same basis as the financial information reported in the audited Financial Report for Chisholm Institute of TAFE for the year ended 31 December 2011.

2011 2010 $’000 $’000 STATEMENT 1 – OPERATING EXPENSES

Total Operating Expenses Delivery Provision and Support Activity 80,315 84,069 Administration and General Services Activity 21,905 20,875 Property, Plant and Equipment Services Activity 19,458 19,711 Student and Other Services Activity 8,186 7,638 Total Operating Expenses 129,864 132,293

STATEMENT 2 – DELIVERY PROVISION AND SUPPORT ACTIVITY

Delivery Provision and Support Activity Salaries, Wages, Overtime and Allowances 62,778 65,081 Superannuation 5,468 5,712 Payroll Tax 3,317 3,427 Other Salary Related Costs 686 600 Consumables 4,448 5,139 Travel and Motor Vehicle Expenses 422 422 Depreciation 2,111 1,948 Other Direct Delivery Expenses 1,084 1,740 Delivery Provision and Support Activity 80,314 84,069

STATEMENT 3 – ADMINSTRATION AND GENERAL SERVICES ACTIVITY

Administration and General Services Activity Salaries, Wages, Overtime and Allowances 10,595 8,011 Superannuation 394 610 Payroll Tax 321 332 Other Salary Related Costs 81 64 Consumables 203 277 Communication Expenses 1,227 1,378 Fees 3,770 5,177 Travel and Motor Vehicle Expenses 2,098 1,603 Depreciation 406 375 Other Expenses 2,810 3,048 Administration and General Services Activity 21,905 20,875

Annual Report 2011 119 Activity table

2011 2010 $’000 $’000 STATEMENT 4 – PROPERTY, PLANT AND EQUIPMENT SERVICES ACTIVITY

Property, Plant and Equipment Services Activity Salaries, Wages, Overtime and Allowances 1,191 1,333 Superannuation 113 125 Payroll Tax 69 76 Other Salary Related Costs 11 13 Consumables 115 108 Depreciation 3,826 3,531 Equipment 2,569 3,158 Energy Costs 1,590 1,571 Contract Services 5,555 5,331 Rent/leasing Charges 1,229 1,252 Repair and Maintenance 3,111 3,182 Loss on sale of non current assets 59 11 Other Expenses 20 94 Property, Plant and Equipment Services Activity 19,458 19,711

STATEMENT 5 – STUDENT AND OTHER SERVICES ACTIVITY

Student and Other Services Activity Salaries, Wages, Overtime and Allowances 5,891 5,248 Superannuation 487 435 Payroll Tax 332 292 Other Salary Related Costs 46 54 Consumables 364 331 Depreciation 13 12 Other Expenses 1,053 1,266 Student and Other Services Activity 8,186 7,638

120 Chisholm Institute 2011 Financial Performance against the 2011 Budget

The Board approves an Annual Budget consistent with financial obligations stated in its governance approaches, the Constitution, the Education and Training Act and other statutory directions.

The 2011 Budget was originally approved by the Board on 1 December 2010. A revision to the Budget was approved on 27 July 2011.

Chisholm’s performances against the financial targets specified in the 2011 Revised Budget are summarised as follows:

2011 2011 Revised Actual Budget Variance Note $’000 $’000 $’000

Operating Income 1 128,699 124,546 4,513

Operating Expenses 2 (121,247) (121,115) (132)

Operating Surplus 7,452 3,431 4,021

Capital Operations 3 (1,050) 1,747 2,797

Net Surplus 6,402 5,178 1,224

Working Capital Balance 4 18,080 12,580 4,545

Notes

1. Operating Income was higher than budget due to increased contestable delivery which resulted in higher than anticipated Contestable funding.

2. The increase in Operating Expenses largely results from the marginal increase in salary expenses associated with increased contestable delivery.

3. Capital Operations includes Government Contributions – Capital, Depreciation, and Expenditures from Capital Contributions.

4.  Working Capital is equal to Current Assets less Current Liabilities (excluding Long Term Employee Provisions).

Annual Report 2011 121 Chisholm 2011 – 2014 Targets

Chisholm 2014 Targets 2011 Progress Report

Maintain a 5% surplus, exclusive of re- The Institute achieved a $7.452M surplus, higher than the 5% target of $6.4M. The turnover was investment $128.7M.

All tertiary programs have For this KPI, tertiary programs are defined as Diploma and Advanced Diploma. At the end of 2011, formal pathways 70.4% of courses had formal pathways to higher levels. For some courses, e.g. OH&S, there are no (100%) easily identified equivalents in higher education and for others, e.g. Engineering, formal articulation is difficult to negotiate because of specialist subjects.

30% increase in staff rating Chisholm In 2010, 14.6% of staff rated Chisholm as excellent in the staff satisfaction survey, up from 6.7% as an excellent place to work in 2006, and well ahead of the 2014 target. The next Chisholm staff survey is in the second half of (8.7%) 2012.

32% reduction in environment In 2011, Chisholm’s environmental sustainability index reduction target was 15% and the actual sustainability index performance achieved was a reduction of 13%. This included total net emissions of 15,484 CO2-et. (11,410 tonne)

37% of learners undertake In 2010, 32% of learners undertook a subsequent course, a small increase on the previous year. For a subsequent course 2011, 37% of students undertook more than one course, thereby meeting the 2014 performance (11,880 learners) target.

Increase in training resulting in The final report for the year showed a 2.8% increase over the 2010 result at 7.24 M SCH. 10% growth The Institute did not meet the growth target of 7.75 M SCH in 2011. A target of 10% has (7.75 M SCH, government also been set for 2012. funds in 2011)

122 Chisholm Institute Disclosures Index and Additional Compliance Reports

Introduction The Annual Report is the principal medium through which Chisholm Institute of TAFE discharges its accountability to the Parliament, Government and the people of Victoria. This index is provided to assist readers of the 2011 Annual Report to identify how Chisholm has met reporting obligations specified in:

• Financial Management Act 1994 (FMA) • Financial Reporting Directions (FRD) • Standing Directions (SD) of the Minister for Finance issued under the Financial Management Act 1994 • Australian Accounting Standards (AAS) • Australian Accounting Standards Board (AASB) • Education and Training Reform Act 2006 (ETR) • Decision of Public Accounts and Estimates Committee of Parliament December 1997 (PAEC) • 3.110 Auditor General 30 June 2002 – Overseas Operations of Victorian TAFE Institute (Auditor General) • TAFE Governance Review, May 2003 (Governance).

Questions or comments can be addressed to:

Director, Corporate Services Chisholm Institute of TAFE 121 Stud Road Dandenong VIC 3175 T +61 3 9212 5259 E [email protected]

Annual Report 2011 123 Disclosures Index and Additional Compliance Reports

This section of the 2011 Annual Report includes: Page number Disclosures Index 125-128 The index of compliance reports, which provides:

• A list identifying the relevant clauses of Victorian legislation with statutory disclosure requirements • A short description of the relevant requirement • Details of the page number(s) where this Report provides the relevant details for Chisholm Institute.

Additional information and reports not otherwise included in the 2011 Annual Report, including: Page number

• Additional Information Available on Request 129 • Application of the Freedom of Information Act 1982 129 • Application of the Whistleblowers Protection Act 2001 130 • Assets Received Without Due Consideration 130 • Compliance with the Building Act 1993 131 • Engagement of Consultants 133 • Environmental Performance 134 • External Reviews 137 • Financial Management Compliance Framework 137 • Formation and objectives of the Board Chisholm Institute of TAFE 137 • Formation and objectives of the Caroline Chisholm Education Foundation 138 • Human Resources Report 139 • National Competition Policy 140 • Prices, Fees, Charges, Rates and Levies charged by Chisholm Institute of TAFE 141

124 Chisholm Institute DISCLOSURES INDEX

CLAUSE REPORTING REQUIREMENT page (a) REPORT OF OPERATIONS 1 CLAUSE The Report of Operations is to include qualitative and quantitative information on operations of 4–20 FRD 22 the Institute and should be prepared on a basis consistent with the financial statements prepared pursuant to the Financial Management Act 1994. This report is to provide users with information about: • The Institute and its activities • Operational highlights for the reporting period • Future initiatives and • Other relevant information not included in the financial statements. 2 SD 4.2(g) The Report of Operations must be prepared in accordance with the requirements of the Financial 4 FRD 22 Reporting Directions. 3 SD 4.5.5 Signature of responsible person - Attestation on compliance with the Australian/New Zealand Risk 37 Management Standard. 4 SD 4.2(j) Signature of Responsible Person – 4 FRD 22 The Report of Operations must be signed and dated by the Accountable Officer in the case of a Government Department or, in the case of any other Public Sector Body, a member of the Responsible Body. STANDARD DISCLOSURES IN THE REPORT OF OPERATIONS GENERAL INFORMATION 5 FRD 22 Manner of Establishment, including the relevant Minister. 23 6 FRD 22 The Institute’s objectives, functions, powers and duties, linked to a summary of its activities, 137 programs and achievements for the reporting period. 7 FRD 22 Nature and range of service provision, including the communities served. 5-20, 137–139 8 FRD 22 Organisational chart(s) detailing members of the governing Board and the CEO, and organisational 23-33 chart(s) detailing occupants of senior officers and their responsibilities. Governance 9 TAFE Gov. Recommendation of TAFE Governance Review May 2003 39–40 Review Outline of the structure of the Board including: • Committees of Board • Description of their functions and • Occupants of each committee. 10 TAFE Gov. Outline of the structure of Board including: 23-33, 39 Review • Names and qualifications of members of the Board including knowledge, experience and skills and • Summary of number of meetings attended by each Board member.

11 TAFE Gov. Summary of training undertaken by Board members throughout the year, including the number and 39 Review type of programs. 12 TAFE Gov. A summary of performance and activities of the Board including a brief description of the values of 38-42 Review the Board and whether there is a code of conduct used to guide Board decisions. 13 FRD 22B Statement on workforce data for the current and previous reporting periods. 139 14 FRD 22B Statement on the application of employment and conduct principles. 140 15 FRD 22B Statement on occupational health and safety, including appropriate performance indicators, 41 outlining the Institute’s performance against such indicators. This should also include details of assessments and measures taken to improve the occupational health and safety of employees. 16 FRD 22B A general statement on industrial relations within the Institute and details of time lost through 41 industrial accidents and disputes.

DISCLOSURE INDEX 17 FRD 10 The Disclosure Index is to contain a list identifying the relevant clauses of Victorian legislation 125-128 including statutory disclosure requirements. 18 FRD 10 A short description of the relevant requirement. 124 19 FRD 10 The page in the Annual Report where satisfaction of the relevant requirement is disclosed. 124-128

Annual Report 2011 125 Disclosures Index and Additional Compliance Reports

DISCLOSURES Disclosure of ex-gratia payments 20 FRD 11 Disclosure in aggregate of the nature and amount of any ex-gratia payments incurred and written 80 off during the reporting period. This is to be included in the notes to the financial statements. Disclosures of responsible persons. 21 FRD 21A(1)(a) The name of each person holding a position that meets the definition of responsible person of the 83 reporting entity at any time during the reporting period. Disclosures of remuneration of executive officers. 22 FRD 21A(1)(b) Where there is more than one responsible person during any reporting period, the total 85 remuneration of all responsible persons received or receivable in connection to their employment. 23 FRD 21A(1)(c) An analysis of remuneration of responsible persons 85 • In bands of $10,000 and • Listing the number of responsible persons whose actual remuneration for the period falls within each band. 24 FRD 21A(1)(d) A table disclosing the aggregate amount of related party transactions at the reporting date, 86 including but not limited to the aggregate amount of repayments, shares and share options and other sources of remuneration that do not come under the definition of any of the above mentioned categories received by the responsible person in addition to base remuneration. 25 FRD 21(2)(a) Total remuneration of all executive officers received or receivable in connection to their employment 85 including: • The remuneration of executive officers acting in the position of an accountable officer at any time during the reporting period and • To ensure disclosures are meaningful, additional information may need to be disclosed about the nature of such remuneration. 26 FRD 21(2)(b) Base remuneration disclosed separately from actual remuneration. Significant variations between 85 total and base remuneration should be supported by explanatory commentary. 27 FRD 21(2)(c) Accrual principles that apply in determining remuneration levels. All amounts received or receivable 85 by the individual are to be disclosed. FINANCIAL INFORMATION 28 FRD 22 Summary of financial results with comparative information for preceding four years. 44-46 29 FRD 22 Summary of significant changes in financial position. 44-46 30 FRD 22 Summary of operational and budgetary objectives, including performance against objectives and 44-46, significant achievements. 98-99 31 FRD 22 Events subsequent to balance date that may have a significant effect on operations in subsequent 82 years, including a summary of major changes affecting the achievement of operational objectives. 32 FRD 22 For each consultancy valued in excess of $100,000, set out: • Schedule listing the consultants engaged • Summary of project involved • Total project fees approved (excluding GST) • Expenditure for the reporting period (excluding GST) and • Future commitments relating to consultant. 33 FRD 22 Total number of consultancies individually valued at less than $100, 000 (exclusive of GST). 133 34 FRD 22 Total expenditure (exclusive of GST) of these consultancy engagements. 133 35 FRD 22 Financial information must be consistent with that included in the financial statements. 22

126 Chisholm Institute 36 FRD 22 The Report of Operations should be presented in a format that complements the financial report as 19-20 a whole: • Containing any additional information the accountable officer or the governing board considers appropriate or • Any information that has been mandated by other authoritative pronouncements. The Report of Operations must contain general and financial information, including other relevant financial information, outlining and explaining an entity’s operations and activities for the reporting period. 37 FRD 27 The Report of Operations must include an audited statement of performance including: 95-97 • The relevant performance targets and indicators as determined by the responsible Minister • The actual results achieved for that financial year against pre-determined performance targets and indicators • An explanation of any significant variance between the actual results and performance targets indicators and • The TAFE Statement of Performance Management Certificate. OTHER RELEVANT INFORMATION 38 FRD 22 Summary of Application of Freedom of Information Act (1982). (Including amendments of 129 3 August 2007.) 39 FRD 22 Statement on compliance with building and maintenance provisions in the Building Act 1993. 131-132 (Including amendments of 1 July 2007.) 40 FRD 22 Summary of the application and operation of the Whistleblowers Protection Act 2001, including 130 disclosures required by the Act. (Including amendments of 1 July 2007.) 41 FRD 22 Statement on implementation and compliance with National Competition Policy, including 140-141 statement on compliance with policy statements: Statement on implementation and compliance with National Competition Policy, including statement on compliance with policy statements: • “Competitive Neutrality: A Statement of Victorian Government Policy” • “Victorian Government Timetable for the Review of Legislative Restrictions on Competition” and • Any subsequent reforms. 42 FRD 22 Summary of environmental performance. 134-137 43 FRD 22 Statement (to the extent applicable that the information listed in Appendix 1) is available on request 123-124 to the relevant Minister, members of Parliament or the public. This includes additional information available on request subject to provision of Freedom of Information Act. 44 FRD 22 Statement that declarations of pecuniary interests have been duly completed by all relevant 129 officers. 45 FRD 22 Details of shares held by senior officers (as nominees or held beneficially in a statutory authority or 40 subsidiary). 46 FRD 22 Details of publications produced by the entity about itself and how they can be obtained. 123 47 FRD 22 Details of major promotional, public relations and marketing activities undertaken to develop 19 community awareness of the Institute and its services. 48 FRD 22 Details of changes in prices, fees, charges, rates and levies charged by the Institute. 141 49 FRD 22 Details of any major external reviews carried out on the Institute. 137 50 FRD 22 Details of major research and development activities undertaken by the Institute. 129 51 FRD 22 Details of overseas visits undertaken including a summary of the objectives and outcomes of 129 each visit. 52 FRD 22 List of major committees sponsored by the Institute, the purposes of each committee and the 129 extent to which the purposes have been achieved.

Annual Report 2011 127 Disclosures Index and Additional Compliance Reports

OVERSEAS OPERATIONS OF VIC.TAFE INSTITUTES 53 PAEC Financial and other information on initiatives taken or strategies relating to the Institute’s 69 international operations. AUDITOR GENERAL Recommendation in relation to Overseas Operations of Victoria TAFE Institutes – 3.110 Auditor General, Special Reviews, 30 June 2002. 54. 3.110 Information in Annual Reports of TAFE Institutes should include: 38, 40, • Nature of strategic and operational risks 87-93 • Strategies established to manage such risks • Performance measures and targets formulated for off-shore operations and • Extent to which expected outcomes have been achieved. FINANCIAL REPORTING DIRECTION 27 – PRESENTATION OF REPORTING AND PERFORMANCE INFORMATION 55. FRD 27A Reporting and Performance Information 121-122 Reporting and Performance Information should be presented using Key Performance Indicators (KPIs). A Statement of Performance Management Certificate should also be completed. (a) FINANCIAL STATEMENTS Part 7 of the financial management act 1994 (fma) 56. FMA 49(a) Must contain such information as required by the Minister. 49 57. FMA 49(b) Must be prepared in a manner and form approved by the Minister. 49 58. FMA 49(c) Must present fairly the financial transactions of the department or public body during the financial 49 year to which they relate. 59. FMA 49(d) Must present fairly the financial position of the department or public body as at the end of 49 the year. 60. FMA 49(e) Must be certified by the Accountable Officer for the Department or public body in the manner 49 approved by the Minister. The Financial Statements must be prepared in accordance with: 61. SD 4.2(a) Australian Accounting Standards (AAS and AASB standards) and other mandatory professional 49 reporting requirements (including Urgent Issues Group Consensus Views and Statements of Accounting Concepts). 62. SD 4.2(a) Financial Report Directions. 49 63. SDA 4.2(a) Business rules. 49 The Financial Statements are to comprise the following: 64. SD 4.2(b) Operating Statement. 50 65. SD 4.2(b) Balance Sheet. 51 66. SD 4.2(b) Statement of recognised income and expenses. 69-73 67. SD 4.2(b) Cash Flow Statement. 53 68. SD 4.2(b) Notes to the financial statements. 54-94 The Financial Statements must, where applicable, be signed and dated by the Accountable Officer, CFAO and a member of the Responsible Body stating whether, in their opinion: 69. SD 4.2(c) The financial statements present fairly the financial transactions during the reporting period and 49 the financial position at the end of the period. 70. SD 4.2(c) The financial statements are prepared in accordance with this direction and applicable Financial 49 Reporting Directions. 71 SD 4.2(c) The financial statements comply with applicable Australian accounting standards (AAS and AASB 49 standards) and other mandatory professional reporting requirements (including Urgent Issues Group Consensus Views and Statements of Accounting Concepts).

128 Chisholm Institute Additional Information Application of the Freedom of Available on Request Information Act 1982

Consistent with the requirements of the Financial Management Chisholm Institute of TAFE has implemented procedures which, Act 1994, Chisholm has prepared materials on the following topics, subject to privacy and confidentiality provisions, facilitate all which are available on request: reasonable requests for information from students, staff and the general public without recourse to the Freedom of Information • Statements regarding declarations of pecuniary interest Act 1982. General enquiries about Chisholm Institute should be • Details of publications produced by Chisholm Institute of addressed to: TAFE and the places where publications can be obtained Chisholm Institute of TAFE • Details of research and development activities undertaken PO Box 684 by Chisholm Institute of TAFE Dandenong VIC 3175 • Details of overseas visits undertaken, including a summary or visit our website chisholm.edu.au of the objectives and outcomes of each visit • Details of promotional, public relations and marketing All Freedom of Information requests should be forwarded to: activities undertaken by Chisholm Institute of TAFE to The Freedom of Information Officer develop community awareness of the Institute and the Chisholm Institute of TAFE programs and services provided PO Box 684 • Details of major committees sponsored by Chisholm Dandenong VIC 3175 Institute of TAFE and the extent to which their purposes Chisholm Institute of TAFE may levy a charge for information have been achieved. provided that is subject to a Freedom of Information request in accordance with the Freedom of Information (Access Charges) Enquiries regarding this information Regulation 2004. should be directed to: Director, Corporate Services During the year ended 30 December 2011, Chisholm received three Chisholm Institute of TAFE applications for access to documentary information under Section PO Box 684 17 of the Freedom of Information Act 1982. Dandenong VIC 3175 T +61 3 9212 5056 E [email protected]

Annual Report 2011 129 Application of the Whistleblowers Assets Received Without Due Protection Act 2001 Consideration

Chisholm Institute of TAFE has implemented a policy and Chisholm Institute receives financial support from industry and the procedural framework to encourage and facilitate the making community in the form of donated assets and materials provided at of whistleblower disclosures of improper conduct by Chisholm’s no cost. During 2011, these donations took the form of: officers and employees. Chisholm’s procedure provides protection and support for whistleblowers and establishes a system for • Cash donations received by Chisholm for the Caroline matters to be investigated and, where necessary, corrective actions Chisholm Education Foundation to be taken. • Equipment, furniture and fittings and other consumable materials donated to Chisholm Institute which assist in the For the year ended 31 December 2011: provision of apprenticeship programs and the delivery of (a) There was one matter raised with Chisholm under the other programs Whistleblowers Protection Act 2001 • Additional supplier price discounts for equipment purchased (b) There were no matters referred to Chisholm for for training purposes investigation by the Ombudsman in 2011 • Cash and materials donations specifically for student award (c) There were no matters referred to Chisholm Institute which presentations. the Institute declined to investigate.

130 Chisholm Institute Compliance with the Building Act 1993 Building Act 1993

General Statement Chisholm Institute holds all plans and documentation for building extensions and new buildings lodged for issue of building approvals by certified building surveyors. Upon completion of construction the Institute has obtained Certificates of Occupancy and practical completion certificates from the relevant architects and surveyors.

Assurance Programs

Certification of Building Projects During 2011 architects provided completion certificates and necessary building compliance and regulatory certificates were received for all projects completed during the year.

Building Maintenance Programs Chisholm Institute has an ongoing maintenance program (using Institute’s staff and engagement of specialist external contractors) for works to the existing buildings controlled by Chisholm.

Compliance Statement It is considered that all buildings on campus currently conform to the Building Regulations as existed at the time of construction of the respective buildings. All new buildings constructed since the promulgation of the Building Act 1993, comply with those relevant standards. Chisholm Institute has an ongoing program to ensure that any alterations or improvements to buildings meet the necessary standards to ensure that they are safe and fit for purpose.

For the year ended 31 December 2011 progress towards full compliance with the Buildings Act 1993 is summarised as follows:

Building Works 2011 2010 2009 New buildings certified for approval 0 3 2 Works in progress subject to mandatory inspections 0 3 1

New occupancy permits issued 4* 3 3 Maintenance Notices issues for sub standard buildings requiring urgent attention 0 0 0 Other notices issued involving major expenditure and urgent attention 0 0 0 Conforming Number of Buildings occupied by Chisholm Frankston 17 17 17 Dandenong 27** 25 25 (Note the above numbers are buildings in their entirety, floors and levels have not been considered.) Berwick 9*** 8 6 Cranbourne 5**** 4 3 Bass Coast 5***** 4 3 Mornington Peninsula 6 6 6 TOTAL 69 64 60 Number of buildings conforming to the above standards 67 64 60 Number of non conforming buildings vacated 0 0 0 Number of buildings not conforming to standards Refer to Subdivision Statement

Note:

* Cranbourne Water Centre, Bass Coast Portable, Dandenong ALC, Dandenong Dream ** ALC, Dream, *** Berwick Portables Relocation **** Cranbourne Water Centre ***** Bass Coast Portable

Annual Report 2011 131 Sub Division 1 of the building regulation is related to all Building works undertaken by Chisholm during the year ended 31 new buildings or section of existing buildings altered December 2011 were as follows: after the 1st July 1994 - There are approximately 8 buildings • Partial implementation of disability access rectification out of the 64 that are considered to be Subdivision 1 Type works across all campuses buildings, all buildings are issued with an Annual Essential Safety • Quarterly inspections completed by an accredited external Measures Report. consultant to ensure that all essential service requirements are met Sub Division 2 relates to all buildings constructed or • Completion of the Cranbourne Sustainable Water altered prior to 1st July 1994 - All Sub-Division 2 buildings Management Centre have been provided with a maintenance determination in Accordance with Part 1215 of the Building Regulations, which • Relocation and fit out of Portable from Frankston to Bass requires all buildings to be provided with this document and Coast subsequent Annual Essential Safety Measures Reports prior to the • The relocation of portable from Leongatha tafe to Berwick 13th June 2009. and Bass Coast • Completion of the Dandenong Dream building Estimated value of maintenance backlog: • Completion of the Dandenong Automotive and Logistic As at 1 January 2011 - $2.7 million Centre As at 31 December 2011 - $3 million • Extension to Berwick TEC for bricklaying training Despite carrying out backlog works to the value of $552,000 in • Refurbishment of Cafeteria at Dandenong and Frankston 2011 the outstanding backlog maintenance remains at or above • Infrastructure for wind mill installations at Berwick the $2.7 million. This is due to the following: • Sustainability initiatives implemented, completed projects • The majority of the items and their cost estimates are now include: 7 years old and needs updating. - Individual building Energy metering installations • A lot of backlog items that were completed with previous - Internal and external recycling stations rolled out in new years backlog funding are now due for maintenance again. buildings Some of these are captured in the structured maintenance plan - Solar PV 8kw installation • In 2010 structured maintenance plan was prepared and for - 20kL water harvesting project 2011 the projected estimate for such work was $677,000 - Thermoshield energy efficient roof coating installation for cyclic maintenance. Unfortunately this was not funded - Lighting upgrades. hence the identified structured maintenance items were transferred as outstanding backlog maintenance • There has been increase in number of new buildings added to our stock since 2004 and each of them requires planning for cyclic maintenance and if neglected will become back log liability • Unfortunately due to funding constraints the department did not have the ability to implement the 2011 structured maintenance plan hence realistically the backlog maintenance liability will continue to increase • Therefore the estimated backlog maintenance by end of 2011 will creep up to approximately $3 million • Furthermore, due to budget constraints particularly with responsive maintenance there are items of building and services requests that were not completed and such items transferred to backlog list. Recent concerns have been on the conditions of our Plant and Equipment for HVAC systems for older buildings.

132 Chisholm Institute Engagement of Consultants

The Financial Management Act 1994 defines a consultant as a person who or an organisation which: • Provides specialised analysis and advice to facilitate decision making • Performs a one-off task or set of tasks • And/ or performs a function involving skills or specialised knowledge not available within the Institute.

During the year ended 31 December 2011, Chisholm Institute of TAFE: • Engaged ten consultants costing more than $100,000. Details are as follows:

Consultant Project Approved 2011 Future Expenditure Expenditure Commitments (ex GST) Vincent Chrisp Architects Berwick Trade Careers Centre – Design 1,403,934 428,803 975,131 Consultancy Fees Gray Puksand Pty Ltd START Trade Centre - Design 1,253,884 298,940 954,944 Consultancy Services M P Cordia & Associates Pty Ltd START Trade Centre Consultants – 236,940 90,930 146,010 Quantity Surveying Services Avaxa Pty Ltd STRATA – Student Administration 420,762 420,762 NIL System Total Essential Services Group Pty Safety Auditing Reporting and 213,824 261,091 NIL Ltd Replacement Reactive Media Pty Ltd Website Development and Maintenance 213,543 213,202 NIL Earth Systems Consulting Pty Ltd International Projects – Cambodia Water 215,270 169,095 46,175 The Teleran Group 360 Degree Feedback 115,88.5 141,394 NIL Synoptic Consulting Pty Ltd Workflow Project 120,000 109,839 75,000

• Engaged other 21 consultants, each costing less than $100,000. The total cost of these consultancies was $799,920 (ex GST).

Annual Report 2011 133 Environmental Performance

Sustainability can be described as the interconnectedness of a healthy environment, social justice, equity and economic vitality so that the quality of human life is improved while living within the carrying capacity of supporting ecosystems.

Chisholm seeks to integrate sustainability principles into all aspects of the organisation so that it is recognised as a leader in the design and delivery of sustainable education and training for social, environmental and economic prosperity and understanding through life long education, training and community capacity building.

Chisholm recognise its own sustainability is interconnected with the sustainability of its activities which require coherence and congruence between sustainability, education delivery and assessment, campus operations and development, values, policy and procedures, behaviour and culture.

Chisholm’s core business is vocational education and training and the direct environmental impacts of this have been identified and targets created relating to greenhouse gas emissions, energy, water, waste, onsite renewable generation, GreenPower purchase, embedding sustainability into institute business and education. Further to this Chisholm is committed to actions relating to green procurement and education for sustainability, which will support the Chisholm 2020 target of 50 per cent reduction in the Chisholm sustainability index.

In 2011 Chisholm successfully submitted its 2012 - 2013 ResourceSmart Strategy to Sustainability Victoria and continued to support staff and student education for sustainability both formally and informally via infrastructure and engagement projects.

Key sustainability priorities for 2011 included: ResourceSmart Strategy

ResourceSmart Tertiary Education (RSTE) is a program developed in a partnership with Skills Victoria, Department of Sustainability & Environment (DSE) and Sustainability Victoria. The program aligns with Government policy commitments including:

• Living Sustainably (2009) • National VET Sector Sustainability Policy * Action Plan (2009 – 2012) • Links with existing environmental programs ie. EREP, WaterMAP, EEO, NGERS, Waste Wise, Skills Victoria, TEFMA, SCG.

The Chisholm ResourceSmart Strategy covers the following targets, relative to 2007 (base year):

Target (baseline 2007) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Emission Reduction -15% -20% -25% -30% -35% -40% -43% -45% -48% -50% Energy Reduction -15% -20% -25% -30% -35% -40% 43% -45% -48% -50% Green Power Purchase 20% 20% 25% 30% 35% 40% 45% 50% 55% 60% Renewable Generation 5% 8% 10% 12% 15% 18% 20% 25% 28% 30% Water Reduction -15% -25% -35% -55% -65% -70% -75% -80% -85% -90% Waste Recycling 25% 35% 45% 50% 55% 60% 65% 70% 75% 80%

The Chisholm ResourceSmart Strategy not only covers the above but also green purchasing, built environment design, transportation, education for sustainability, and embedding of sustainability throughout our business.

A detailed ResourceSmart action plan for 2012 - 2013 was developed in line with the targets.

134 Chisholm Institute Environmental Sustainability Index

The Environmental Sustainability index aligns with ResourceSmart strategy targets, Chisholm strategy program (2010 - 2014) framework and Chisholm 2020 which includes the 2014 target: 32 per cent reduction in the environmental sustainability index, relative to 2007.

The index is calculated using weighted emissions, energy and water consumption against Students (EFTSL) plus Staff (EFT). As Chisholm develops its sustainability targets and actions further measures could be added including education for sustainability and social responsibility. This single measure enables Chisholm to take a holistic view of sustainability.

A summary of the index is below: Chisholm Environmental Sustainability Index 2010 - 2014 Year Target Sustainability Target Reduction % Actual Sustainability Actual Performance % Index Index 2007 (Baseline) 1.63 0% 1.63 0% 2008 1.59 -2% 1.64 1.6% 2009 1.55 -5% 1.41 -13% 2010 1.46 -10% 1.39 -15% 2011 1.38 -15% 1.41 -13%

Education for Sustainability In 2011 Chisholm continued its education for sustainability initiatives in line with the National VET Sector Sustainability Policy Action Plan (2009 - 2012) and VET targets. To date the Professional Learning and Development department have provided sustainability training to over 350 teaching staff in both the Certificate II and Diploma levels.

Annual Report 2011 135 Sustainability Performance Chisholm reported it sustainability performance quarterly to the Resource Management Committee. The 2011 performance summary is below:

Impacts/Indicators Measure Baseline 2007 Actual 2011 % (‘07 vs’10) Square Meters (Mth Avg) M2 98,784 111,719 13.1% Student Contact Hours SCH 9,250,627 11,194,353 21.0% Staff Numbers (Mth Avg) # 1,332 1,959 47.1% Student Enrolments # 40,329 43,127 6.9% Staff EFT (Avg) EFT 956 1,109 15.9% Student FTESL (SCH/720) EFTSL 12,848 15,548 21.0% Student (EFTSL) + Staff (EFT) EFTSL + EFT 13,805 16,657 20.7% 2011 TARGETS t Co2-e 14,223 15,484 T1 - Emissions Reduction (15%) t CO2-e/EFTSL+EFT 1.03 0.93 -9.8% MJ 61,636,903 64,473,039 T2 - Energy Reduction (15%) Total MJ/EFTSL+ EFT 4,465 3,871 -13.3% MJ 3,187,044 5,173,876 T3 - Green Power Purchase (20%) % 9.8% 14.9% 5.1% MJ 0 24,926 T4 - Renewable Energy (5%) % 0 0.04% 0.04% kL 36,744 30,154 T5 - Water Reduction (15%) kL/EFTSL+ EFT 2.66 1.81 -32.0% t 847 1,318 T6 - Waste to Landfill Reduction (25%) t/EFTSL+ EFT 0.0613 0.0791 % recycled 13.3% 26.3% 28.9%

Energy Efficient Design and Environmental Sustainable Design EED and ESD principles are incorporated into the design of all new buildings. This includes the following consideration: • Building orientation to capture northerly sun • Exterior shading of buildings to reduce direct sunlight • Light wells in corridors to reduce dependency on artificial lighting • Louvered internal windows to promote increased airflow • Operable external windows to increase fresh air circulation • Use of natural ventilation and ceiling fans • Use of low embodied energy materials in construction • New buildings to be built using Green Star rating • Building automation systems • Only having air conditioning in staffroom, offices, PC labs; classrooms are naturally ventilated, and/or use high energy efficient units • Use water storage tanks • Solar heating • Use of energy efficient light fittings • Light sensors.

136 Chisholm Institute Examples of 2011 construction projects using these principles Formation and Objectives of the include: Board of Chisholm Institute

• Dandenong Automotive and Logistics Centre The Board of Chisholm Institute of Technical and Further Education • Dandenong Dream Trade Training Centre (TAFE) was created by Ministerial order No.8 dated 9 October 2007. • Cranbourne Sustainable Water Centre. Ministerial Order No.8 was made under section 3.12(2), 5.2.12 and 5.10.4 of the Education and Training Reform Act 2006. Ministerial Order Number 8 amends the Order of the Governor in Council of Sustainable Campus Group (SCG) Chisholm Institute of Technical and Further Education on 16 April Chisholm Institute is an active member of the Sustainability 2002 pursuant to the Vocational Education Act 1990. Campus Group (SCG). The SCG is focused on progressing sustainability in the tertiary and vocational education sector. Chisholm Institute of TAFE is also the legal successor to the former In 2011 Chisholm participated in the SCG sector reports. The Council of Chisholm Institute of Technical and Further Education, reports are focused on participating Institutes (Universities and which was abolished on 16 April 2002. TAFEs) operational environmental performance such as energy, The Board is responsible for the management and strategic water, waste and emissions; however it also captures institutional development of Chisholm Institute in accordance with duties and commitment including education for sustainability. The report is obligations specified in the Education and Training Reform Act a national benchmark report on environmental performance for 2006 and Ministerial Order No.8 (the Constitution of the Board). the sector and can be viewed here: http://monash.edu/research/ sustainability-institute/assets/documents/scg_aust_tertiary_ed_ The Board’s business is consistent with its Constitution and sust_report_2011_web.pdf Council’s Governance Manual, which regulates the conduct of the Board and Board Committee meetings and further details the External Reviews values and goals of the Board.

There were no external reviews carried out in respect of the operation of Chisholm Institute during the year ended 31 December 2011.

Financial Management Compliance Framework

Under the Victorian Government Financial Management Compliance Framework (FMCF), Chisholm Institute makes an annual declaration on financial management, taxation, purchasing theft and losses, compliance and reporting processes.

In accordance with the FMCF, Maria Peters, CEO, and the Accountable Officer for Chisholm Institute and Grant Radford, Chief Finance and Accounting Officer for Chisholm Institute have made a declaration to the Institute Board that Chisholm’s financial reports are founded on sound risk management, internal compliance and control systems.

In 2011, Chisholm Institute reports no non-compliances with the FMCF.

Annual Report 2011 137 Clauses 4 and 5 of the Board’s Constitution specify the following Clause 5: Duties of the Board objectives and duties of the Board: In addition to the duties imposed on the Board by section 3.1.15

Clause 4: Objectives of the Board of the Act, other provisions of this Order and any other duties imposed by law, the Board must: a) Within the context of national and state policy and management frameworks, to establish goals for the a) Take all reasonable steps for the advancement of its Institute objectives b) To provide quality vocational education and training and b) Operate in accordance with the economic and social adult, community and further education programs and objectives and public sector management policy services, established from time to time by the Government of and related services and research which: Victoria i. improve and support the competitiveness of c) Provide all assistance and information as the Minister, the industry Secretary or the Deputy Secretary may reasonably require from the Board ii. support the employment and career opportunities of individuals d) Ensure the safe custody and proper use of the common seal of the Board. iii. serve the needs of the general community iv. contribute to the financial viability of the institute Formation and Objectives of the c) To govern and control the Institute efficiently and effectively and to optimise the efficient use of resources Caroline Chisholm Education d) To seek and identify needs for high quality vocational Foundation education and training in industry or markets generally and The Caroline Chisholm Education Foundation is a ‘controlled-entity’ to fulfil those needs of the Chisholm Institute of TAFE Board, which operates under a e) To involve all staff in the continuous development of their Trust Deed approved by the Board and an operational agreement skills with the Board. f) To develop and maintain strong relationships with the local The Caroline Chisholm Education Foundation began operations and regional communities in which the Institute operates in 2006. The Foundation proudly bears the name of the pioneer g) To ensure the provisions of vocational education, training Caroline Chisholm who, on her arrival in the new Australian colony and consultancy services to industry and students, both in 1838, was compelled to help change the appalling conditions of in Australia and the Asia Pacific region, is in accordance poor, vulnerable migrants. “I promise to know neither country nor with the Institute’s quality policy and national and State creed, but to serve all justly and impartially,” she wrote. guidelines Objectives of the Foundation h) To enter partnerships which strengthen the Institute’s The objectives of the Foundation set out in the Trust Deed are as capacity to achieve the objectives. follows: a) To strive to continue Caroline Chisholm’s values and legacy Nothing in this clause affects the functions of the Board under of social justice by providing support to disadvantaged section 3.1.13 of the Act. students and members of the Chisholm Institute of TAFE community b) To provide scholarships, studentships, fellowships, bursaries and other forms of financial assistance, and support to students of the Institute (past, present or future) or members of the Institute community who are confronted by disadvantage, adversity, lack of opportunity or other circumstances that impede their advancement in education or the development of their vocational skills c) To provide sponsorship or other forms of financial assistance to persons living outside Australia who are confronted by disadvantage, adversity, lack of opportunity or other circumstances that impede their advancement in education or the development of their vocational skills

138 Chisholm Institute d) To create opportunities for staff and students of the Institute to participate in philanthropic activities, training programs and educational or vocational initiatives, and to provide a source of funding for such activities, programs and initiatives that would assist and support students of the Institute (past, present or future), members of the Institute community or other persons confronted by disadvantage, adversity or lack of opportunity in educational advancement or vocational skill development in accordance with these general objects e) extend invitations to staff, students, alumni, parents of students and individual organisational and corporate friends of the Institute to become contributors to the Foundation, and through such contribution to participate and join more actively and effectively in supporting and assisting the Institute to promote and carry out the objectives of the Foundation.

Human Resources Report

The Workforce Capability Plan 2011 focused on a number of significant projects across three areas: Workforce Management, Organisational Development and Occupational Health and Well-being. The outcomes of these projects in 2011 supported Chisholm Institute’s strategic intent and direction. Key achievements undertaken by Chisholm to support workforce capability in 2011 included: • Implementation of a new and improved KIOSK function for the Institute’s Human Resource Information System – CHRIS 21. The new KIOSK enabled more streamlined and efficient processing of leave applications on-line for staff and provides enhanced details about staff leave entitlements and balances. The new KIOSK also enables staff to book into and have recorded on the Chris record all their professional development activity • Implementation of arrangements to support staff accessing the new Federal Government Paid Parental Leave arrangements • Development and implementation of new performance management and review processes including new templates for use by staff • Development of an In Principle Agreement for a new Enterprise Agreement for the Institute’s professional (non-teaching) staff; which will provide improved conditions of employment, an enhanced classification and career structure and annual pay increases • Review of all OH&S policies and procedures following an OH&S internal audit review • Implementation of emergency management arrangements across the Institute including evacuation drills on all campuses • Implementation of Chisholm’s service recognition program with inaugural event for Chisholm’s foundation employees • A variety of Occupational Health and Well-being Programmes.

Workforce Data Equivalent Full-Time (EFT) Staff

EFT Average Staffing Comparison 2011 2010 2009 Executive Officers 12 12 12 Teaching 683 646 698 PACCT 426 423 370 Others 0 0 1 Total 1,121 1,081 1,081

Note: The information above represents an average equivalent full-time (EFT) staffing figure for the 2009, 2010 and 2011 calendar years, i.e. the sum of the monthly figures divided by 12.

Annual Report 2011 139 Public Sector Employment and Conduct Principles National Competition Policy Chisholm has developed costing and pricing models that apply with Chisholm’s employment policies and processes are based on the Chisholm costs including overhead, infrastructure and other indirect principle of merit, relevant award and statutory requirements, and costs, where appropriate, to take into account any competitive best practice public sector approaches. advantage that Chisholm may have. The Institute’s Code of Conduct which is reviewed annually This enables Chisholm to comply with National Competition Policy, provides guidance to all staff on expected behaviour and including the requirements of the Government Policy statement, professional conduct and is based on the Institute values, “Competitive neutrality: A Statement of Victorian Policy” and the Victorian Public Sector Model and other best practice subsequent reforms. examples. Chisholm is committed to equal opportunity and fair and transparent processes in all human resource management procedures.

General Statement on Industrial Relations Chisholm continues to have regular consultative arrangements in place with both major unions, the Australian Education Union (AEU) and National Tertiary Education Union (NTEU). Chisholm also uses the dispute resolution procedures in its Certified Agreements to ensure issues that may arise are addressed appropriately and in a timely manner.

There were no days lost due to industrial action in 2011.

WorkCover/Return to Work See OH&S report.

140 Chisholm Institute • Traineeships - $1.84 per student enrolled hour. The Prices, Fees, Charges, Rates minimum fee for this category was $187.50 and the and Levies charged by annual maximum fee was $1,250 Chisholm Institute of TAFE • Skills Building - $1.84 per student enrolled hour. The minimum fee for this category was $187.50 and the Chisholm charges a range of fees and prices for programs and annual maximum fee was $1,250 services offered by the Institute. For 2011, the fees and charges included: • Skills Deepening - $3.79 per student enrolled hour. The minimum fee for this category was $375 and the annual (a) 2011 Fees and Charges maximum fee was $2,000. A new tuition fee concession From 1 July 2009, in line with the government policy maximum of $100 was introduced for young people under initiative, Securing Jobs for Your Future – Implementation 25 years undertaking Diploma and Advanced Diploma of the Skills Reform, Chisholm introduced a new Fees and qualifications from 1 February 2011. Charges schedule. Certain concessions and exemptions (b) compulsory service and amenities fee charged for students applied enrolling in government funded programs for the purpose (i) For students enrolled before 1 July 2009 the of providing student services and amenities. The fee is following applied: A compulsory tuition fee of $1.43 based on 21 cents per student enrolled hour enrolled with per student enrolled hour charged for government a minimum fee of $26 and a maximum fee of $82. This fee subsidised programs in accordance with Ministerial has not been increased since 2006 Directions about fees and charges. The minimum (c) A non-compulsory materials fee for students enrolling in fee for students in 2011 enrolled before 1 July government funded programs which covers the actual cost 2009 was $57. The annual maximum fee for of providing materials or services used or retained by a students enrolled before 1 July 2009 was $916 student in a particular course of study. The fee varies for (ii) For students enrolled on or after 1 July 2009 the each course depending upon requirements. Full details are following applied: A compulsory tuition fee for provided to each student prior to enrolment government subsidised programs in accordance (d) Programs and services provided on a fee-for-service basis with Ministerial Directions about fees and charges, and priced in accordance with National Competition Policy based on an hourly rate per enrolled hour classified principles in one of the five Skills Reform course categories: (e) Programs and services provided to international students • Foundation Skills - $1.08 per student enrolled hour. The and customers which are costed on a commercial basis minimum fee for this category was $50 and the annual (f) Other fees and charges of a cost-recovery nature, e.g. maximum fee was $500 library fines, parking fines, photocopying and printing • Skills Creation - $1.51 per student enrolled hour. The charges for staff and students. minimum fee for this category was $105 and the annual maximum fee was $875 • Apprenticeships - $1.40 per student enrolled hour. The minimum fee for this category was $58 and the annual maximum fee was $923

Annual Report 2011 141 Acronyms

This listing is prepared to assist in the understanding of the Annual Report and related materials by the provision of the listing of acronyms commonly used at Chisholm and in the Vocational Education and Training (VET) Sector.

AAS Australian Accounting Standard AASB Australian Accounting Standards Board ABS Australian Bureau of Statistics ABSTUDY Aboriginal Study Assistance Scheme ACCI Australian Chamber of Commerce and Industry ACE Adult and Community Education ACER Australian Council for Education and Research ACFE Adult, Community and Further Education ACPET Australian Council of Private Education and Training ACSA Australian Curriculum Studies Association ACVETS Australian Committee on Vocational Education & Training Statistics ADF Australian Defence Force AEU Australian Education Union AFO’s Apprenticeship Field Officers AIG Australian Industry Group AITN Australian International TAFE Network AITD Australian Institute of Training and Development ALA Adult Learning Australia ALBE Adult Literacy and Basic Education AMES Adult Multicultural Education Services AMEP Adult Migrant English Program AQF Australian Qualifications Framework AQTF Australian Quality Training Framework ARC Australian Research Council ARMC Audit and Risk Management Committee ASF Australian Standards Framework? ASIC Australian Securities and Investments Commission ATAS Aboriginal Tutorial Assistance Scheme ATO Australian Taxation Office ATS Australian Traineeship System AVETMISS Australian Vocational Education and Training Management Information Statistical Standard AVTS Australian Vocational Training System BOS Board of Studies BIS Business Intelligence Solutions CAE Council of Adult Education CALD Culturally and Linguistically Diverse CBT Competency Based Training CDG Chisholm Directors’ Group CCEF Caroline Chisholm Education Foundation CEDA Committee for Economic Development of Australia CEO Chief Executive Officer CFO Chief Finance Officer CIO Chief Information Officer CGEA Certificate of General Education for Adults CHRIS Complete Human Resources Information System CIES Centre for Integrated Engineering & Science

142 Chisholm Institute CMG Chisholm Managers Group CMM Curriculum Maintenance Manager COAG Council of Australian Governments CRC Cooperative Research Centres CRICOS Commonwealth Register of Institutions and Courses for Overseas Students CSF Curriculum Standards Framework DEEWR Department of Education, Employment & Workplace Relations (Federal) DEECD Department of Education, Early Childhood Development (State) DIIRD Department of Innovation, Industry and Regional Development (State) DREAM Dandenong Regional Educational Alliance Model (Dandenong TTC) EBA Enterprise Bargaining Agreement EEO Equal Employment Opportunity EFT Equivalent Full Time (when referring to staffing) EFT Electronic Funds Transfer (when referring to cash or banking) EIF Education Investment Fund ELICOS English Language Intensive Course for Overseas Students ETR Education and Training Reform Act 2006 ERC Expenditure Review Committee (of the State Government) FFS Fee for Service FLAG Flexible Learning Advisory Group FMA Financial Management Act 1994 FMCF Financial Management Compliance Framework FMI Frontline Management Initiative FWA Fair Work Australia - Replaces Australian Industrial Relations Commission HELP Higher Education Loan Program GST Goods and Services Tax HRD Human Resources Development IFRS International Financial Reporting Standards IME Invalid Module Enrolment ISC Industry Skills Council ISP International Student Programs ISU Industry Services Unit IT S Information Technology Services ITAB Industry Training Advisory Board JSAP Job Services Australia Provider KPI Key Performance Indicator LACP Local Aboriginal Community Partnerships LGA Local Government Area LLEN Local Learning and Employment Network LLNP Language, Literacy and Numeracy Program LOTE Language other than English LRC Library Resource Centre MCTEE Ministerial Council for Tertiary Education and Employment MCVTE Ministerial Council of Vocational and Technical Education Replaced by MCTEE MBA Multi-Business Agreement (Certified Agreement) MIPS Managed Individual Pathways

Annual Report 2011 143 MLCR Module Load Completion Rates NATA National Australian Testing Authority NCVER National Centre for Vocational Education Research NISC National Industry Skills Committee NOOSR National Office of Overseas Skills Recognition NQC National Quality Council NTEU National Tertiary Education Union NTIS National Training Information Service NVEAC National VET Equity Advisory Council OECD Organisation for Economic Co-operation and Development OH & S Occupational Health & Safety OUA Open Universities Australia PACCT Professional, Administrative, Clerical, Computing and Technical PPP Productivity Places Program PV Partnerships Victoria (Public Private Partnerships) QMS Quality Management System RATE Register of Australian Tertiary Education RCC Recognition of Current Competencies RDA Regional Development Australia RMC Resource Management Committee RPL Recognition of Prior Learning RTO Registered Training Organisation SCH Student Contact Hours SD Standing Directions of the Minister for Finance issued under the Financial Management Act 1994 SDMC Strategic Development and Monitoring Committee SELLEN South East Local Learning and Employment Network SEMRC South East Migrant Resource Centre SME Small / Medium Enterprise SMS Student Management System START School TAFE Alliance Regional Trade (Frankston TTC) TAFE Technical and Further Education TDA TAFE Directors Australia TEC Technical Education Centre TEQSA Tertiary Education Quality Standards Agency TESOL Teaching of English to Students of Other Languages TFN Tax File number TLCF Teaching and Learning Capital Fund TOEFL Test of English as a Foreign Language TQM Total Quality Management TRIM Chisholm Records Management System TSN Training Support Network TTC Trade Training Centre TVET Company owned by MCTEE U3A University of Third Age VAGO Victorian Auditor General’s Office VCAA Victorian Curriculum and Assessment Authority VCAL Victorian Certificate of Applied Learning VCE Victorian Certificate of Education VEAC Vocational Education and Assessment Centre VET Vocational Education and Training

144 Chisholm Institute VLESC Victorian Learning and Employment Skills Commission (replaced by the Victorian Skills Commission) VMIA Victorian Managed Insurance Authority VRQA Victorian Registration and Qualifications Authority VSC Victorian Skills Commission VTA Victorian TAFE Association VTAC Victorian Tertiary Admissions Centre WELL Workplace English Language & Literacy WNA Withdrawn Never Attended WRAPS Wholesale, Retail and Personal Services

Annual Report 2011 145 1300 244 746 chisholm.edu.au 0003-0512