Sunraysia Institute of TAFE ANNUAL REPORT 2015

TRAINING TO GET BACK TO WORK SuniTAFE ... Start here, go far!

The training services referred to in this report are delivered Contents with Victorian and Commonwealth Government funding. CRICOS Provider Code: 01985A RTO Code: 4693

Future Directions 16 This report may contain the names, images and descriptions INTRODUCTION Our Vision, Mission and Values 17 of people who have passed away and which may sadden and About SuniTAFE 2 distress some Aboriginal and Torres Strait Islander people. Board Chair’s Report 3 Chief Executive Officer’s Report 4 Governance and Organisational Structure 20

Accountable Officer’s declaration OUR ORGANISATION COMPLIANCE INFORMATION In accordance with the Financial Management Act 1994, Statement of Performance 5 Statutory Requirements and Statements 28 I am pleased to present the Sunraysia Institute of TAFE Disclosure Index 29 Annual Report for the year ending 31 December 2015. Our Year in Review 5 VAGO Statement of Performance 34 Customers 5 Education and Training 9 Business 10 2015 FINANCIAL REPORT Staff 12 Declaration Statement 32 Independent Auditor’s Report 33 Win Scott Environmental Performance 13 Comprehensive Operating Statement 35 Chief Executive Officer Financial Performance 15 Balance Sheet 36 Sunraysia Institute of TAFE Statement of Changes in Equity 37 29/03/2016 Cash Flow Statement 38

Sunraysia Institute of Technical and Further Education> 1 Introduction Board Chair’s Report

ABOUT SuniTAFE near Mildura. Together these facilities Our adult community and further education The Board and staff of Sunraysia Institute to the campus to announce the funding provide vocational education and training training provides students with training of TAFE will remember 2015 as a year of grants. Four industry engagement projects Sunraysia Institute of TAFE (SuniTAFE) is for the people of Loddon Mallee north and in areas such as language support, work one of the largest providers of vocational building in all senses of the word. The Board were initiated as a result of the funding beyond. Through the use of technology education and general education, enabling education and training in north-west commissioned four building projects one of and the Institute has made good progress and a commitment to building educational students to further their employment Victoria. A small TAFE with a large reach, the which was operational before the end of the in building relationships with industry partnerships that improve opportunities for opportunities and community engagement. Institute was established in 1980 as a result year. This was a new kindergarten for TAFE partners. students, the Institute’s reach now extends of the dream of local educators who saw the Kids, the Institute’s Childcare Centre, and far beyond the boundaries of its geographic Traditional areas of delivery at the introduction of post-secondary education the Minister for Families and Children, the Later in the year, the Board welcomed location. Institute have reflected the industry base to the district as being integral to the needs Honourable Jenny Mikakos, officially opened Minister Herbert back to Mildura when of the region. These were predominately of the growing community and regional the Centre in June 2015. As a result of the he announced funding to create a Skills agriculture, horticulture, building, industry. Our region project there will be an additional twenty- and Jobs Centre. This will provide further construction and associated trades, Loddon Mallee North is a vast geographic two kindergarten places at the Centre from opportunities to engage with the community light and heavy automotive, community Inception area approximately 45,000 square the beginning of 2016. and industry through its central location in kilometres in size, about 17% of Victoria’s health, welfare, business and retail and The Sunraysia College of TAFE, as it was Mildura. Planning has progressed well and total area. The population of Loddon Mallee hospitality services. While we still deliver known then, was the first purpose-designed The next project to begin was an expansion the Skills and Jobs Centre will be opened in North is projected to increase by 13% by in the traditional areas, there has been and built TAFE College in Victoria. The project for the Swan Hill campus which early 2016. In the meantime, the services 2031. Between 2011 and 2031, the highest an increased focus on delivery in areas of College was designed not only to provide a includes a Learning Commons with student offered by the Centre have commenced growth is projected for the 65+ age group. regional skills shortage; Health Care and quality teaching program that would meet facilities, two nursing laboratories and two on each of the Institute’s campuses and The region’s aging population will require Social Assistance, Trades, Engineering SuniTAFE’s CEO Win Scott advised the the needs of the community and industry additional classrooms to accommodate there is already a measurable increase in additional skilled health workers to meet the and Agriculture. Board that she would not be seeking a but also to provide training access to those the growing number of apprentices in the engagement and improvement in retention challenge of population increase. The region further term when her contract expires in living in remote regional areas of north- trades. In Mildura there will be a new Dulka as a result. has a strong Indigenous heritage and a More often qualifications are designed June 2016. The Board began a recruitment west Victoria. Indeed the construction Yuppata Cultural and Training Centre with large Aboriginal population, and new skilled around providing students with pathways process in November to select a new CEO of residential accommodation and the additional training facilities and two nursing The Board also built a new reporting migrants are an ever-growing demographic into further study. The Institute is and an appointment is expected in early planning of childcare facilities were included in the region. Rates of international and continuing to diversify the way it provides laboratories along with a refreshed front framework in 2015 which led to more 2016. There will be an opportunity to in the very initial planning phase of the new humanitarian migration into the region services to the community with delivery entrance to solve some of the campus accurate monthly as well newly developed acknowledge Win’s ten year contribution college. This was unprecedented in Victoria have increased in recent years, stimulated occurring via a wide variety of modes access problems. These projects will all predictive financial reports. The Institute before she leaves the Institute. at the time but was strongly fought for by by the Australian Government’s regional including on-campus, off-campus, full open in the first few months of 2016. still has financial challenges but the Board the steering committee as being necessary settlement programs and the Victorian and part-time, online, workplace based has confidence in the management reports I would like to thank Win, the Executive team to break down barriers to access for remote Government’s Regional Migration Incentive and skills recognition. The next project to begin was an expansion which provide a strong base for future students. and the staff for their hard work and support Fund. The Loddon Mallee North region has project for the Swan Hill campus which planning. The educational delivery reports in 2015. Feedback about the quality of our SuniTAFE received 7,252 enrolments in a disproportionate number of communities includes a Learning Commons with student also provided solid data which enabled the teaching programs is excellent and that Removing educational obstacles for regional 2015. In delivering important vocational and groups who experience disadvantage. facilities, two nursing laboratories and two Board to identify current trends and future reminds us of the reason we’re here – to and rural students was a significant driver skills to the community and providing local additional classrooms to accommodate opportunities. provide training that leads to employment for the initial establishment of the Institute. businesses and industry with a skilled Training programs the growing number of apprentices in and pathways to higher education for the During the very early years of the Institute’s workforce SuniTAFE plays a key role in These environmental factors have largely the trades. In Mildura there will be a new I would like to thank the Board Directors communities of north-west Victoria. inception the vital role partnerships with supporting the region’s economy. other educational providers could play was driven the development of SuniTAFE’s Indigenous Cultural Centre with additional for their commitment to the Institute training delivery. Highest delivery occurs training facilities and two nursing in 2015. The composition of the Board recognised. Links and relationships were SuniTAFE objectives, powers and functions in the areas of community services, laboratories along with a refreshed front has been very stable since 2013 and this fostered with Ballarat University College, are set out in our governing document - agriculture and production horticulture, entrance to solve some of the campus continuity has been important in providing La Trobe University, Hawthorn Institute The Constitution of the Sunraysia Institute Leonie Burrows general construction and repair, service access problems. These projects will all sound governance and stability during a of Education, Victoria College and Deakin of Technical and Further Education. In 2015 BOARD CHAIR and retail and health. These areas currently open in the first few months of 2016. time of organisational change. There will University. It is notable to mention that the Institute reported to Parliament through account for nearly one third of overall The business of SuniTAFE is also in a be significant changes to governance the SuniTAFE of today continues to enjoy The Hon. Steve Herbert, MP, Minister for delivery at the Institute. The Institute’s strong links with all of these early partners Training and Skills, from 01 January 2015 building phase. This has been assisted arrangements in 2016. In an environment community services and health training is although it might be through another entity. until 31 December 2015. with funding from the State Government of ongoing change, the Board of Sunraysia providing skilled workers to meet labour of Victoria through the TAFE Rescue and Institute of TAFE will be anticipating some SuniTAFE today is a vibrant institute with shortages in aged care, disability services, the Back to Work funds and the Board was continuity in Board membership to limit two main campuses located at Mildura early childhood development, nursing, allied pleased to welcome the Honourable Steve risk. This is especially relevant given that health and community services. and Swan Hill, rural campuses at Robinvale Herbert, Minister for Training and Skills, the Institute will be welcoming a new CEO and Ouyen and a training farm at Cardross in 2016. 2 Sunraysia Institute of Technical and Further Education> 3 Chief Executive Officer’s Report Our Organisation OUR YEAR IN REVIEW TRAINING TO GET STATEMENT OF The Year in Review section of SuniTAFE’s 2015 Annual Report BACK TO WORK provides a snapshot of its activities and achievements in relation PERFORMANCE to its strategic and operational objectives. The section highlights are summarised under the headings of: Recently I was part of a panel interviewing The Institute is proud of the standard of our FOR 2015 shortlisted candidates for awards for the apprenticeship training which is evidenced In our opinion, the accompanying Sunraysia Institute of TAFE 2015 Graduation by a completion rate of 95%. Apprenticeship Statement of Performance of Sunraysia > Customers and Awards ceremony. The candidates enrolments grew by 6% in 2015 which is Institute of Technical and Further Education > Education and Training interviewed were for the Teacher of the Year particularly pleasing when there is concern for the year ended 31 December 2015, is Award and the Board Excellence Award. nationally about the decline in apprenticeship > Business presented fairly in accordance with the The graduating students and the teachers enrolments. I was asked recently about the > Staff Financial Reporting Directions. had much in common - their passion for reason for our success and I had no hesitation > Environmental Performance their chosen industry, their energy and in saying that it’s the quality of our teaching. > Financial Performance enthusiasm to do more and their loyalty and The Statement outlines the performance commitment to SuniTAFE. It was a wonderful Our teachers are committed and will go the indicators as determined by the responsible reminder of the reason we’re in the business extra mile to make sure that their students Minister, predetermined targets and the CUSTOMERS of providing vocational education and get the most out of their SuniTAFE experience. actual results for the year against these Graduate Outcomes training. There are parts of our equipment and facilities indicators, and an explanation of any The National Centre for Vocational Education Research (NCVER) that could do with an upgrade but student significant variance between the actual annual Student Outcomes Survey provides strong evidence of In the 2015 Learner Engagement Survey, feedback is overwhelmingly positive about the results and performance targets. when asked to comment on positive aspects quality of the teaching that they receive. the Institute’s graduate satisfaction. The 2015 survey (of 2014 of their course, one student wrote, ‘the graduates) showed; As at the date of signing, we are not aware amount of knowledge and actual experiences Even more importantly, the feedback from • 84% of SuniTAFE graduates were employed after training of any circumstance which would render the teacher had of the training and her employers in the 2015 annual survey was very • 30% were enrolled in further study after training any particulars in the Statement to be passion for it’. positive. The survey confirmed that SuniTAFE • 88.5% of graduates indicated they were satisfied with the misleading or inaccurate. is delivering the skills that are needed in overall quality of their training During the year I attended an event to the workplace and reinforcing the students’ • 89.5% of graduates would recommend SuniTAFE acknowledge the shortlisted candidates for workplace experience through theory and the Victorian International Student Awards. practical training. Once again the candidates were outstanding Each of these indicators of graduate satisfaction and success and there were many stories about the We have a great team of staff members Leonie Burrows are above the Victorian TAFE average and Government Funded life-changing nature of their studies at TAFE at SuniTAFE – teachers, support staff and BOARD CHAIR VET Victorian average satisfaction rates. institutes or other VET providers in Victoria. managers. I would like to thank them most Sunraysia Institute of TAFE sincerely for their commitment to the 29/03/2016 SuniTAFE was very proud to have an Institute. Thanks especially to the members International student shortlisted. Lai Poh of the Executive team –Tracey Forbes, Frank Lee completed a Diploma of Hospitality at Piscioneri, Anthony Mills and Jenny Grigg. the end of 2015. Apart from her studies and her part-time work, Poh has become We’re fortunate to have a Board that supports Win Scott a passionate advocate for the Slow Food us in sometimes difficult times and celebrates CHIEF EXECUTIVE OFFICER movement and she is now the Secretary our successes with us. The Board Chair, Sunraysia Institute of TAFE of Slow Food Mildura – it’s great to see an Leonie Burrows dedicates many hours to International student from Malaysia so SuniTAFE business and I really appreciate her 29/03/2016 integrated into the Mildura community. advice and guidance. 2016 is shaping up to be a good year for SuniTAFE with the opening of Several SuniTAFE apprentices collected new facilities and the Skills and Jobs Centre. industry awards in 2015. Student awards We look forward to continued growth and are a great reflection on the hard work success in the coming year. Frank Piscioneri and commitment of our students. They CHIEF FINANCE AND ACCOUNTING OFFICER are also a great reflection of the hard work and Company Secretary and commitment of our teachers and (Director Operations) support staff. Win Scott Sunraysia Institute of TAFE CHIEF EXECUTIVE OFFICER 29/03/2016

4 Sunraysia Institute of Technical and Further Education> 5 Graduation Students Awards Graduation ceremonies are held annually in March by both the Mildura and Swan Hill campuses. At the ceremony students received their graduation certificates and a number of students were recognised for their outstanding achievements. Presentations were made to winners of awards in categories across business units as well as in specialist categories. Of particular note in 2015 a range of awards were presented to students at regional, state Student Awards - 2015 and national ceremonies such as international student Lai Poh Lee, school-based apprentice Elliot Grayling Finalist - Australian School-based Apprentice of the Year Award, 2015 Australian (Electro technology) Elliot Grayling and Electrical Apprentice Makayla Harrison. Certificate III in Electro technology Electrician (4th year Training Awards apprentice, Grayling Electrical) Winner - School-based Apprentice of the Year Award, 2015 Victorian Training Awards SuniTAFE’s first graduation ceremony for students completing the Federation University Winner - Apprentice of the Year Award 2014, Sunraysia Institute of TAFE Australia degree program Bachelor of Applied Management was held in September 2015. Winner - Education Unit Award 2014, Industry and Energy, Sunraysia Institute of TAFE The university had demonstrated its inclusive approach to higher education in the Sunraysia Vimal Ram Winner - International Student of the Year (VET/TAFE) Award, CISA Excellence region by creating a degree program to meet the needs of the local community. The Diploma of Hospitality Awards 2015 program’s facilitators come from the local Sunraysia area and couple very high standards Shari Handy Finalist - Koorie Student of the Year Award, 2015 Victorian Training Awards Certificate III in Business Administration of delivery with their extensive business knowledge to provide a rich experience for the (Trainee, Mildura Rural City Council) Finalist - Koorie Student of the Year Award, VAEAI 2015 Wurreker Awards students. This was the first higher education program delivered directly by SuniTAFE, others Lai Poh Lee Finalist - International Student of the Year Award, 2015 Victorian International will follow as the Institute expands its range of offerings into other sectors. Advanced Diploma of Hospitality Education Awards Winner - International Student of the Year Award 2014, Sunraysia Institute of TAFE Student Awards Winner - SuniTAFE Board Excellence Award 2014, Sunraysia Institute of TAFE Makayla Harrison Winner - Regional Apprentice of the Year Award 2015, Electrical Development Lai Poh Lee Apprentice, Electro technology Electrician Association of Victoria Awards One of three finalists in the Victorian International Education Awards 2015, International Liam Donnelly Winner - Apprentice of the Year Award, Bosch Service Network, Oceania region Student of the Year - VET category, Poh is an outstanding student who is well respected Certificate III in Light Vehicle Mechanical Technology by her teachers in hospitality and well-liked by all who meet her. Completing an Advanced (2nd year apprentice, Oasis Auto Services) Diploma of Hospitality in 2015, Malaysian born Poh has been on quite a journey since arriving SuniTAFE hospitality students - team Bronze Medal - AusTAFE state final, Bendigo in Mildura in 2013 as a backpacker looking to re-skill and experience the Australian lifestyle. Kritika Devi Winner - 2015 Chefs of the Future, Sunraysia Institute of TAFE She studied a Certificate IV in Hospitality (Commercial Cookery) and Diploma of Hospitality Diploma of Hospitality and during this time received accolades for her achievements including being named the Karina Sullivan Winner - Trainee of the Year Award, 2014 SMGT Gala Awards International Student of the Year for 2014 as well as receiving SuniTAFE’s Board Excellence Certificate III in Aged Care Winner - Trainee of the Month, January 2014, SMGT Award. Working locally as a chef, Poh understands the importance of studying – in knowing Jamie Alchin Winner - Education Unit Award 2014, Automotive, Sunraysia Institute of TAFE how to cook good food skills in administration, management and budging are also necessary. Certificate III in Automotive Mechanical Following her studies Poh plans to continue to live and work in Mildura. Technology - Agricultural Tim Ikafanga Winner - Education Unit Award 2014, Foundation and Further Education, Elliot Grayling Certificate III in General Education for Adults Sunraysia Institute of TAFE Year 12 student Elliot undertook a Certificate III in Electro Technology – Electrician as a Dana Peirce Winner - Education Unit Award 2014, Health and Wellbeing, Sunraysia Institute school-based apprentice. As part of his apprenticeship he also worked 10 hours a week at Certificate III in Hairdressing of TAFE his father’s company Grayling Electrical. In his fourth year of trade school, Elliot has passed Candice Heyward-Spence Winner - Education Unit Award 2014, Land and Environment, Sunraysia Institute Certificate III in Equine Industry of TAFE all modules, achieving top marks in his electrical licensing exams. He is the youngest person Lisa Talbot (SuniTAFE teacher) Winner - Education Unit Award 2014, Creative Industries, Sunraysia Institute of TAFE in Victoria to have sat these exams and the only school-based apprentice. He was recognised Diploma of Vocational Education and Training for his outstanding achievements by being named a finalist in the Australian School-based Stephanie McCarten Winner - VETiS Student of the Year Award 2014, Sunraysia Institute of TAFE Apprentice of the Year Award at the 2015 Australian Training Awards after winning the Certificate II in Animal Studies School-Based Apprentice of the Year Award at the 2015 Victorian Training Awards. These Leanne Owen Winner - Koorie Student of the Year Award 2014, Sunraysia Institute of TAFE awards follow the success of Elliot winning the Sunraysia Institute of TAFE Industry and Certificate II in Equine Industry Energy Education Unit Award and Apprentice of the Year Award for the 2014 academic year. Karen Hokai Outstanding Pre-accredited Learner Award, 2015 Learn Local Awards The apprenticeship has taught him important skills including respect for the customer Certificate III in Horticulture, East End Community House and responsibility. Elliot plans to go to university to study electrical engineering. Emory Marshman Outstanding Achievement Award 2015, Skillinvest School-based Apprentice, Certificate II in Automotive Kynan Meyer Outstanding Achievement Award 2015, Skillinvest Makayla Harrison School-based Apprentice, Certificate II in Automotive One of SuniTAFE’s four female electrical apprentices, Makayla was named the Regional Mitchel Barry Best First Year Apprentice Award 2015, Skillinvest Apprentice of the Year for 2015 at the Electrical Development Association of Victoria Awards. Apprentice, Certificate III in Agriculture Mechanical Technology The awards recognise the achievements and contributions made by Victorian students within the electrical industry and provides them with an opportunity to further their professional development. Makayla joined Lower Murray Water in January 2013 as an Apprentice Electro Technology Electrician. During her time there she has been involved with a range of projects including Stage 1 of the Mildura Water Treatment Plant upgrade, and was chosen as SMGT’s June 2015 Apprentice of the Month.

6 Sunraysia Institute of Technical and Further Education> 7 and vacation care programs. Built with the assistance of a grant through the Victorian Government Early Learning Facilities Our Year In Review Upgrade Fund, the extensions also included renovations to the existing facility including a new bike racing track in the playground. During construction the child size ‘peephole’ made by the builders in the temporary Engagement and playground fence proved very popular Retention Program with the children. In 2015 SuniTAFE implementation of the Engagement and Retention Unit to provide TAFE Kids is a community based, not for students with course guidance advice and The Hon. Jenny Mikakos together with Board Director Danny Grzan unveiling the plaque at the profit childcare centre providing care to official opening of the TAFE Kids Inc. Childcare Care extensions. attrition intervention strategies to ensure local children aged six weeks to six years. The centre is a controlled entity of Sunraysia the best possible study and employment Strong community partnerships have Jane Zhang, International Marketing Coordinator had the opportunity and privilege to meet Her Excellency, the Honourable Linda Dessau AM, Fundraising Institute of TAFE. Refer to the audited Governor of Victoria and Yunnan delegation from China at an invited luncheon at Government House in September. The Yunnan delegation outcomes for students. long played a part in the operations of was composed by the Vice Governor of the Yunnan Province, University Presidents and the Vice Director General of the Yunnan Provincial Throughout 2015 SuniTAFE staff and Department of Education. Financial Report; Note 22. SuniTAFE. This is reflected in the number students undertook a number of community Course guidance advice and attrition of organisations that share space at the fundraising activities and raised over $5400. maintaining the quality and volume of established to meet a community need intervention strategies have resulted in Mildura campus. SuniTAFE is a campus Receiving organisations included The Swan Hill Eco learning. Those programs assessed as ‘at in this thin market. The first year of the re-engagement of 31% of students who partner with La Trobe University and the Sunraysia Cancer Resource Centre, Cancer Demonstration House risk’ were retained by implementing blended degree, which was delivered by SuniTAFE, were identified as “at risk” in the final Murray Darling Freshwater Research Centre, Council (Australia’s Biggest Morning Tea and A number of community presentations and project based delivery were added to had a strong retention rate and feedback quarter of 2015. we host the Sunraysia branch of University Girls’ Night In events), Earthquake survivors and events were held at the Swan Hill delivery modes to increase accessibility and from students was positive. In 2016 the 11 of the Third Age, the National Centre for in Nepal and Mallee Family Care Christmas Eco-Demonstration House in 2015. maintain the presence of SuniTAFE in those students who completed the first year of the Centralised Curriculum Sustainability and the Sunraysia branch Toy Appeal. These included presentations on energy industry areas. SuniTAFE specialises degree will continue into the second year In 2015 the Education Division implemented of Men’s Shed as well as TAFE Kids, an saving initiatives, participation in National in face-to-face delivery resulting in of the course with La Trobe. a centralised curriculum function to incorporated childcare centre. In order to In May Nepalese students held two events Sustainable House Day (open day event), quality training delivery and high student provide teaching staff with the facility to improve the educational options for the at the Mildura Campus to raise funds for and the Sustainable Living Festival. There completion rates (85% MLCR in 2015). International Students efficiently maintain existing and develop students of SuniTAFE the Institute actively earthquake survivors in Nepal. A BBQ was strong community support at these International students are drawn to the new curriculum. seeks out partnerships that add value to and separate luncheon in the SuniTASTE events and the Institute continued to A number of high profile seminars were Institute due to its unique regional position, both the community and the Institute. training restaurant were held. The Nepalese build community support for sustainable delivered in 2015 with strong community course offerings and range of pathways to Although still in development, the SuniTAFE is also actively involved in its local students together with the wider Nepalese building initiatives and interest in interest. Seminars were held in the areas universities. SuniTAFE is a Streamlined Visa centralised curriculum function has seen communities through staff representation community of Mildura were pleased with the sustainable housing with demonstrations of health, land and environment and design. Processing Provider and has strong ties the preparation of several new programs for on local boards and committees. generous donations received. of the lightening tower (built by SuniTAFE Each was conducted in collaboration with with La Trobe University and range of other implementation in 2016. The employment apprentices), solar air vents, solar water the Mildura Rural City Council, Swinburne universities with various pathway options of a Curriculum Development Officer has SuniTAFE is a proud supporter of many Sponsorship pumps for ponds and other devices. and La Trobe University. The seminars for students. been instrumental in providing Education community projects; in 2015 GJ Gardner have increased the Institute’s profile in the Throughout 2015 SuniTAFE was a sponsor Managers with the support necessary to Homes purchased 215 trees for the community as a provider of industry specific of numerous events including: In 2015 there were 131 onshore International construct new programs in a timely way in Conservation and Land Management EDUCATION skills set training, a solution often sought > Murray River International Music Festival student enrolments, with the student body response to industry or customer demand. students who were planting trees at the outside the region by industry, learners and > Mildura Wentworth Arts Festival AND TRAINING representing 15 countries including a Etiwanda Wetlands as part of their studies. the wider community. > Mildura Writers Festival Training Delivery majority of students from China and Nepal. This in turn assisted the custom builder to Community > Mildura Palimpsest Biennale In 2015, in contrast with the trend across Sunraysia Institute of TAFE is committed to achieve their goal of reducing its carbon In late 2015, 160 St Joseph’s College > Mildura Jazz Food and Wine Festival the state, apprenticeship growth was International student marketing activities delivering high quality training to its local footprint by planting trees for every new students visited the SuniTAFE Farm over > Australian Print Triennial strong. In 2015 local VTG apprenticeship included attendance at education exhibitions community, industry and learners. home it builds. a two day period. They experienced sessions > SARG Paws Along the Murray enrolments equated to 31% of total in Vietnam and the Philippines in April, and covering water testing using microscopes, > Mildura Country Music Festival enrolments, a 6% increase in enrolments ongoing liaison with the Institute’s agent In 2015 the Institute and its staff continued SuniTAFE has a social enterprise soil nutrition, plant and pest identification, > whitecubemildura from 2014. Further to this, the module load representative network. An agent forum to make significant contributions to the partnership with the Christie Centre farm tours and were given an overview of the > La Trobe University Arts - Culmin8 completion rate for apprentices was high at was held at the Institute in March and was (provides service to people with disabilities). horticulture and environmental industries community through the provision of 95.26% (93.56% for first year apprentices). attended by four agents from China, India, and associated career opportunities. Both services in relation to learner support, The students were engaged in propagating TAFE Kids Inc. Taiwan and Melbourne. The agents were delivery in thin and niche markets and seedling stock to be planted at the SuniTAFE days were very successful and the feedback In June 2015 The Hon. Jenny Mikakos, MLC, Another positive result in 2015 was the provided an insight into the Institute’s through making available assets for Farm. Approximately 1000 rosemary from both students and staff was positive Minister for Families and Children, officially increase in local delivery overall (2%), facilities, resources and staff, curriculum community need. The Institute will prepare seedlings have already been planted and and potentially leading future enrolments. opened the $287,000 extensions to the particularly in light of the Institute’s move and an introduction to VET education in an and implement its Community Services further plantings of other varieties are TAFE Kids Inc. Childcare Centre. The new away from subcontracting arrangements. Australian context. The participants were also Expectations Plan in early 2016. planned. The project aims to eventually The Institute’s collaboration with La Trobe 22 place facility now offers Kindergarten In order to maintain its ongoing given tours of the region to enhance their produce commercial quantities of herbs University to deliver the Bachelor of Creative programs for both three and four year olds sustainability the Institute continued to understanding of Mildura as a setting for for the local and interstate markets. Arts was a successful initiative that was review its programs for efficiency whilst International students. In September 2015 8 Sunraysia Institute of Technical and Further Education> 9 SuniTAFE CEO Win Scott headed a delegation Coordinator Hospitality, Brad Fyfe, spent six Key Performance Indicators to visit partner organisations in China where weeks in China in 2015 as the first foreign The following table details the Institute’s business performance in 2015 across the organisation in line with the Directions set out in the a Memorandum of Understanding with Dali expert to the Dali VET Technician College. Minister’s Annual Statement of Expectations. University and Dali Health School (located Brad assisted the college to develop a in Dali, Mildura’s sister city) was renewed. In program for western cookery and assisted Key Performance Description and methodology 2015 2015 Explanation Prior year Indicators Target Actual of variances result addition agent training and communication in its delivery. Training was delivered to two Training Revenue diversity Breakdown of training revenue split by Government 1 took place in Wuhan and Hong Kong. groups of 15 students from the college who funded and Fee for Service were selected due to their high results and SuniTAFE international students continue to excellence in Chinese cuisine. This program Training revenue split by: • Victorian Training Guarantee (VTG) 86% 73% 78% achieve success with hospitality student Lai provided an excellent opportunity for the • Fee for Service (FFS) 14% 27% 22% Poh Lee being nominated as a finalist in the students to learn from Brad who has a wealth Employment costs as Employment and Third Party training delivery costs as a 89% 109% 2 122% Victorian International Education Awards of knowledge and an incredible passion for a proportion of training proportion of training revenue (VTG and FFS) in 2015. local fresh food in the Mildura region. revenue Employment costs + 3rd party training delivery costs / Training Revenue The Institute does not conduct any offshore Training revenue per Training Revenue (excl. revenue delivered by third $91,891 $156,231 3 $149,725 activities. teaching FTE* parties) per Teaching FTE*

Training Revenue (excl. revenue delivered by 3rd parties) Disability Access / Teaching FTEs* 4 Trends 2013 2014 2015 Operating margin Operating margin % 6.2% 2.7% (33.6%) percentage MLCR for students with a disability (Gov’t Funded) % 76.1 71 71 EBIT excluding Capital Contributions) / Total Revenue (excl. Capital Contributions) 5 Pass rate for students with a disability (Gov’t Funded) % 80.9 79 80 Return on Investment (non-current assets) 33.63% 20.37% (20.93)% Earnings before Interest, = Earnings before Interest, Taxes and Amortisation $12,949,304 $8,167,000 6 ($9,417,491) No. of enrolments of people with a disability 543 591 543 Tax, Depreciation and (EBITA) Total Institute enrolments 15,013 9,937 7,252 Amortisation (EBITDA) Participation rate as percentage of enrolments % 3.62 5.95 7.49 Module load 85% 85% 86% completion rate Operating revenue = Total revenue $31,756,074 $31,464,929 7 $24,022,695 Indigenous cohort BUSINESS Net result = Net result $11,254,542 $6,241,428 8 ($10,651,297) In 2015 SuniTAFE recorded 340 self- Number of Indigenous A comprehensive course review was Student enrolments 400 340 9 507 declared indigenous enrolments and 70,265 conducted in 2015 resulting in the enrolments Total Number Institute student contact hours, an increase of 3.5% modification to program delivery in some Individual student numbers 7,500 5,878 10 8,239 students from 2014. In total, 23 indigenous students areas and in some staff contributing to Number of enrolments 10,000 7,252 9,937 undertook more than one enrolment, and projects considered outside their primary role. Total Institute enrolments module load completion rates increased by Several Institute-wide working parties Number International Individual student numbers 250 131 11 163 2.5%. The Institute is committed to growing were established in 2015 to review issues our indigenous cohort by keeping students students that were impacting broad sections of 12 engaged and the retention of students. Participation of 15-24 Individual student numbers 2,500 2,818 3,162 the organisation. This enabled a holistic year old students approach to a variety of problems and Working capital ratio = Current Assets*/ current liabilities** 1:1 1.5 13 0.66 : 1 resulted in innovative and cost effective Notes: /productive solutions. 1. VTG revenue increased by 4% from 2014 and FFS has increased by 33%. Overall training revenue increased by 11% or $1.3m. 2. Training revenue was below budget by (29%) and employment, third party costs 14% below budget. 3. Training delivery revenue excluding 3rd parties was below target by (19%). A slight increase from 2014. 4. A significant turnaround from 2014 to 2015 due to additional training revenue and grant funding. 5. Demand driven and capital funding received was below budget. 6. Demand driven partnership income did not meet target by ($4.1m) / (54%). Received back to work funding of $1.8m. Training Partnership expenditure was below budget by 46%. Salary costs were 6% below budget. Capital funding below budget by ($3.56m) 7. Demand driven partnership income did not meet target by ($4.1m) / (54%). Received back to work funding of $1.8m. Also received grant funding. 8. Demand driven income below budget by ($4.1m) contributed significantly to the variance to the target. The major turnaround from 2014 is the additional grant funding received in 2015 and as well as a slight increase in training revenue. 9. The 317 self-declared indigenous students equated to 340 enrolments and 70,265 student contact hours; training delivery increase of 3.5% indicating that a greater number of students undertook extended programs in 2015. The Institute is committed to growing our indigenous cohort by keeping students engaged and focusing on the retention of students. 10. Decreased subcontracted delivery, however, there was a positive increase (2%) in local enrolments/delivery. 11. Students enrolled in multiple qualifications however there were fewer students than anticipated. Strategies are in place for growth in enrolments for 2016 12. Apprentice student numbers increased by 12% from 2014 which contributed to the increase in students in the 15-24 year old age group. 13. Additional grant funding received in 2015. 10 Sunraysia Institute of Technical and Further Education> 11 ENVIRONMENTAL PERFORMANCE

Environmental Data Unit 2014 2015 Greenhouse Gas % Measure Emissions CO2-e Energy Electricity 1 kWh 1716405 1610262 2153.60 -6.18 Natural Gas 2 Megajoule 3050469 3165484 174.90 3.78 LPG 3 Megajoule 377641 328572 18.19 -13.0 Green Power 4 kWh N/A N/A - - Renewable 5 kWh 294824 283184 - -3.95 Waste Landfill Tonne 53.91 50.82 - -5.73 Recycle 6 (cardboard, paper, glass, cans) Tonne 11.48 12.39 - 7.93 The Hon. Steve Herbert together with Lai Poh Lee, Brad Fyfe, hospitality teacher, Annette The Hon. Steve Herbert together with our award winning students Karen Hokai, Joel Schwarz, Lai Poh Lee, Whittaker, Project Manager for International Students Unit at the Victorian International Elliott Grayling and Vimal Ram. - Metals 7 Tonne 10.4 9.47 - -9.0 Education Awards. - Engine oil 7 Litres 3200 900 - -71.5 - E-waste 7 Units 349 573 - -64.2 STAFF Staff Development Service Awards - Miscellaneous Equipment 7 $ 5246.00 6024.72 - 14.8 > Specialist Scholarship Recipients: At SuniTAFE we pride ourselves on being an All Institute staff have the ability to Plantation A4 Ream 118 54 - -54.2 participate in the Strategic Planning Trish Kelly and Ross Goonan employer of choice, this is reflected in the Paper 50% recycle A4 Ream 2480 2853 - 15.0 process at a Business Unit and Divisional > Teaching Fellowship Recipients: length of time our staff choose to remain 80% recycle A4 Ream 478 553 - 15.7 level. Staff are actively engaged to Chris Zhong with us. In 2015 the following staff reached Water (metered) Domestic Kilolitres 20995 23097 - 10.0 determine how their unit will address the > Workforce Development: Education significant service milestones: Reused Kilolitres 532 532 - - Institute’s and division’s Strategic Key Business Unit – Business Improvement Fuel Unleaded Petrol Litre 29933 28311 64.58 -5.42 Performance Indicators. Furthermore, Pilot: Ross Goonan 20 YEARS Diesel Litre 26467 20905 55.84 -21.0 engaging staff in the course review process > Diploma of VET scholarship Recipients: Kylie Rogers, Alan Box. Travel Vehicle km 583472 506344 - -13.2 throughout 2015 provided them with Neva Denham, Nadine Robinson, Air km 292890 288257 96.7 -1.58 Lisa Talbot, Chris Zhong, 15 YEARS valuable information regarding the viability Greenhouse Gas Electricity, gas, fuel, air travel 8 Tonnes 2291 2566 - 12.1 of particular programs and in modifying Andrew Carmichael, Devon Andrews, Mark Hull, Ross Goonan, Megan Stewart, Emissions CO2-e program or delivery options for an efficient, Shane O’Shannassy. Karen Kelly, Jill Dowdy, Prue Taylor, Jenny Heaslip. quality outcome. Notes: • Engine oil – automotive department recycles oils via a ‘recover and reuse’ Staff Qualifications ENERGY waste oil company which re-refines oil. 10 YEARS 1. • E-waste – computers, monitors, servers, electronics, mobile phones all Promoting a healthy As at 31 December 2015 89% of teaching Electricity - a review of equipment operating times combined with behavioural Anthony Mills, Peta Job, Paul McClure, change has resulted in reduced consumption. sold/recycled. workplace staff held a graduate or post graduate Gabrielle Schammer, Jeff Muller, Linda Sites: Mildura Campus, NCS, SuniTAFE Farm, Swan Hill and Robinvale Campuses. • Miscellaneous equipment – obsolete equipment, furniture and unrequired items SuniTAFE promotes a healthy workplace and qualification (AQF level 5 or above). This Prior to 1st July 2014 the annual national ACI (Average Carbon Intensity) value sold through online auctions. McKinnon, Craig Hocking. by doing so improves staff engagement and result was 27% higher than the Institute’s used to calculate electricity emissions was 0.864. The Victorian state Sites: Mildura Campus, SuniTAFE Farm and Swan Hill Campus. productivity. In 2015 SuniTAFE participated target for the year and a positive indicator based value now used to calculate electricity emissions has changed from in the Healthy Together Mildura Community 5 YEARS 0.8645 to 1.34. Notes (CONT): of success of the Institute’s workforce 2. Naomi Tidswell, Abby Carn, Sophie Cook, Natural Gas – colder weather during winter saw a slight increase in GREENHOUSE GAS EMISSIONS 10,000 Steps Challenge. Two staff teams development strategy. Additionally, 97% of consumption figures. Emily Walshaw, Karen Vincent, Racheal 8. Calculated only on electricity, gas, fuel and air travel. Total emissions show an participated in the five week challenge to teaching staff hold a Certificate IV TAE. Sites: Mildura Campus and NCS. increase due to Natural Gas usage and 1st semester electricity comparison periods Fyfe, Ross Humphreys, Tania Felton, Kassie 3. ‘sit less’ and ‘move more’ with the aim of LPG – SuniTAFE Farm consumption decreased due to reduction in dried fruit 2014/2015. The revised value for Victorian electricity emissions which increased as Hocking, Deidre Reid, Elena Pelle, Kelly Vale, processing requirements. reaching 10,000 steps per day. Over 70 In 2015 SuniTAFE teaching staff were again of 1st July 2014. Nardia Baker, Gail Groat, Colin Moore (vale). Sites: Mildura Campus, SuniTAFE Farm and Swan Hill Campus. Sites: Mildura Campus, NCS and Swan Hill Campus. Prior to 1/07/14 the annual teams from across the region registered assisted to upgrade their skills through 4. Green Power - no longer purchased due to the installation of 178 kW of PV solar national ACI (Average Carbon Intensity) value used to calculate electricity emissions and collectively the teams took 189,981,042 our Professional Development Program panels across 3 sites (Mildura Campus, NCS and Swan Hill Campus). This was was 0.864. The Victorian state based value now used to calculate electricity steps with the overall average of 9,707 with seven staff enrolled in the Diploma of VALE completed in 2014 as part of the Greener Government Building Project. emissions has changed from 0.8645 to 1.34. 5. steps per person per day. Both of the Vocational Education and Training Practice. Colin Moore Renewable Energy - the 178 kW PV solar panels are now operational across all three sites. Original renewable energy generation was from 4 x 1.75 kW PV solar FUTURE TARGETS SuniTAFE teams made the top 25 list. Staff across the Institute were deeply In addition two PAACT staff achieved their systems which are still in operation. The targets for electricity and natural gas consumption have been estimated for Diploma of Management; Jacinta Hosking saddened to hear of the passing of their Sites: Mildura Campus, NCS and Swan Hill Campus. PV Solar system 4 x 1.75kWh 2015/2016 (period of one year) as per the Green Government Building Project. Electricity: 5% reduction for 2015/2016 (one year from all systems transitioning In 2016, SuniTAFE will be working with and John Jackson. friend and colleague Colin Moore. Colin WASTE to online). Healthy Together Mildura to develop further passed away on 8th September 2015 after 6. Recycle - total waste has decreased by 3.3%, recycling practices have improved Natural Gas: 5% reduction for 2015/2016 (one year from all systems transitioning a long illness. Colin commenced at the and the amount of paper sent to shredding bins has increased by 1705kg. initiatives to promote health and wellbeing to online). Sites: Mildura Campus only (recorded as contractor weighs all waste). in the workplace. Institute on the 22nd March 2010 and had 2016 targets for all other environmental aspects have been set at 2015 achieved 7. Additional inclusions - results - as reported above table. been a valued member of the Finance Team. • Metals – the engineering, plumbing, automotive, and SuniTAFE Farm He was always happy and had a great love departments recycle all metals. for sport and his family. 12 Sunraysia Institute of Technical and Further Education> 13 GREENHOUSE GAS EMISSIONS (Refer to column in Environmental Data table). Fuel and air flight emission totals have reduced.

LPG emissions have decreased due to seasonal changes in farming operations. FTE figures: Based on total number of staff and students using facilities Electricity emissions show an increase due to change of the annual national ACI Full Time Equivalent Staff & Students (FTE) 2014 2015 (Average Carbon Intensity) value of 0.8645 3671 3074 to the Victorian state based value of 1.345 Per FTE Per Square Metre Per FTE Per Square Metre (brown coal) which is now used to calculate Power (Megajoules/h) 1 467.56 68.46 523.83 64.23 Victoria’s electricity emissions, this commenced 1st July 2014. Power CO2-e (Tonnes) 0.50 0.07 0.70 0.09 Natural Gas (Megajoules) 830.96 121.67 1029.76 126.26 Waste (Kg) 2 17.81 2.61 20.57 2.52 Paper (Ream) 3 0.84 N/A 1.13 - Water (Kilolitres) 4 5.72 0.84 7.51 0.92 Fuel (Litres) 5 271.15 N/A 243.64 - Air Travel CO -e (Tonnes) 0.57 N/A 0.48 - 2 FINANCIAL PERFORMANCE Notes: Consolidated Entity ($’000) 2015 2014 20013 2012 2011 1. Energy Use Energy data is captured in kWh - converted to megajoules using rate of 1 kWh = 3.6 MJ/h. Operating Revenue 36,886 24,023 43,949 30,301 28,384 Square metre figures are calculated for total campus facilities used including office space. Operating Expenses 30,431 31,709 41,954 30,215 29,819 2. Waste Production Waste data is captured in tonnes – converted to kilograms using rate of 1 Tonne = 1000 Kg for FTE. Operating Result before Other Economic Flows 6,455 (7,686) 1,995 86 (1,435) Recycling waste has increased to 19.5% of total waste. Other economic flows included in Net Result (214) (2,965) - - - 3. Paper Use Operating Result after Other Economic Flows 6,241 (10,651) 1,995 86 (1,435) Units of paper have been calculated using staff and student FTE total. 4. Water Consumption Accumulated Profit (Deficit) b/f 1st January 5,064 15,715 13,720 13,634 15,069 Units of metered water calculated for both FTE kilolitres and square metre. Transfers from Reserves - - - - - 5. Transportation Fuel data captured in litres. Transfers to Reserves - - - - - Fuel and Air Travel CO2-e have been calculated using staff figures only for FTE. Transfer to Contributed Capital - - - - - All campuses are located in regional and rural areas, many staff and students travel from regional areas to sites where there is limited public transport. Accumulated Profit (Deficit) 31st December 11,305 5,064 15,715 13,720 13,634

Summary of Significant Changes Overall employee benefits increased by to Financial Position during the Year $85,000, an increase of 3.0%, and non- For the financial year ended 31st December salary expenses decreased by $2,937,000 2015, the Institute recorded a consolidated for 2015, a decrease of 19%. profit of $6,241,428. Financially 2015 was a challenging year Total income achieved for 2015 was for the Sunraysia Institute of TAFE. The $36,885,000 compared to $24,023,000, for Institute did meet some revenue targets, 2014. Excluding capital income, operating returning an operating profit of $6,241,428. income has increased by $7,729,282 which There have been no events subsequent to is an increase of 31%. balance date which would adversely affect the operations of the Sunraysia Institute Expenditure for 2015 totalled $30,431,000 of TAFE in subsequent years. compared to $31,709,000 for 2014, a decrease of $1,278,000 which is a decrease The financial information provided in this of 4.0%. report is consistent with that provided in the Financial Statements.

14 Sunraysia Institute of Technical and Further Education> 15 Future Directions

Growth in health delivery Apprenticeship and traineeship growth Growth in Indigenous courses Health and community services training will Minister for Training and Skills, Steve Work commenced late in 2015 on the OUR VISION be a major focus for the Institute in 2016 Herbert visited the Mildura Campus in development of the new Dulka Yuppata and beyond. Two purpose built practical November and announced $1 million Cultural and Training Centre at the Mildura OUR MISSION nursing and aged care training facilities at in funding to help support the Institute Campus’s existing site. Funded by the both Mildura and Swan Hill campuses will be to deliver important, relevant training Victorian Government, the project will provide OUR VALUES operational in 2016 to alleviate the demand and to drive growth in apprenticeships the campus with a new specialised training Our Vision for nursing applications and provide and traineeships. centre to accommodate ongoing growth SuniTAFE will deliver education and training opportunity to deliver more specialised in Indigenous courses including health, that creates career opportunities and training to students and industry. It will also help the Institute better meet education and the arts. This will include pathways to university. the employment needs of the community training spaces, a reception/administration The additional learning spaces will allow the and industries by providing relevant skills to area and staff offices. Extensive consultation Our Mission Institute to increase delivery at diploma and meet the needs of the changing economy. with the Koorie community and staff has To be an outstanding service provider, advanced diploma level and develop new taken place to ensure that the new facility working in partnership with students and placement partnerships. Training partnership growth aligns with future needs and to assist in customers to achieve their goals. Beginning in February 2016, SuniTAFE will the development of SuniTAFE’s 2016 The Institute will be expanding delivery in partnering with William Angliss Institute to Education Plan. Our Values the areas of allied health and youth work deliver the Regional Tourism Employability We value learning excellence, innovation in 2016. Program. SuniTAFE will have access to International growth and integrity and the needs of our expertise in tourism, hospitality and In order to grow its international student customers are important to us. Board Directors inspect progress of building works at the new nursing and aged care training facilities. AARNET events to deliver a range of specialist program, SuniTAFE continues to develop In 2016 AARNET will become SuniTAFE’s courses in tourism, hospitality and events a range of new pathways with universities, internet provider and this will enable to equip graduates with skills to be job particularly La Trobe through our status as GOVERNANCE AND The objectives of the Board are: its strategic and business plans; extended connectivity. The capacity to ready. Students will be able to continue a Streamlined Visa Processing Provider. In ORGANISATIONAL • to ensure the delivery of high quality • ensuring compliance, risk management deliver new programs will be assisted by living in the region, while gaining practical addition, closer ties with La Trobe University education and training programs and and reporting frameworks are in place a regional TAFEs collaborative e-learning skills and specialist knowledge to drive will soon see SuniTAFE becoming an ELICOS STRUCTURE services in the north-west region of and controls are implemented and project which is led by GO TAFE and regional hospitality and tourism to a more Centre for the university. Sunraysia Institute of TAFE is governed by a Victoria, south-west region of New South regularly tested; coordinated through the Victorian competitive level. Board of Directors, established by the Order Wales and the Riverland region of • the making, amending and revocation TAFE Association. Several activities are planned for early 2016, in Council titled the Constitution of the South Australia; of rules for the good order and including a visit by 15 ELICOS students Sunraysia Institute of Technical and Further • to ensure that the provision of programs management of the Institute; from Wuhan, an agent’s forum, and a China Education Order 2013, made under section and services are responsive to the • evaluating the performance of the CEO Study Tour which will incorporate a Teacher 3.1.11(2) of the Education and Training needs of Institute clients, promote the and managing all matters in relation Exchange Program. Reform Act 2006. competitiveness of industry, enhance to the CEO’s employment contract; and the opportunities of individuals, and • regularly evaluating the performance of Early in 2016 SuniTAFE will be hosting a Through the Higher Education and Skills exceed the expectations of the the Board and individual directors to delegation from China which will see six of Group, the Board is accountable to the community; and ensure the Board is achieving its the original 2007 Chinese Visiting Scholars responsible state Minister. The responsible • to govern the Institute efficiently and purpose. from the Yunnan Agricultural University Minister in 2015 is detailed in Note 20 (I) effectively, ensuring appropriate returning for a reunion. This visit displays of the financial statements. compliance and risk management The Board of Sunraysia Institute of the strong ties SuniTAFE has withheld with frameworks are effected, and resources TAFE is committed to ensuring effective the University since the Visiting Scholars The Board is charged with responsibility for are used prudently solely in the governance practices that reflect Program commenced. ensuring the Institute performs its duties Institutes’ and the public interest; accountability, transparency, professional for the public benefit, within the context of integrity, and ethical behaviour within an Left: Leonie Burrows, Win Scott and Michael Schooneveldt, Senior The Board’s duties include: inclusive framework based on trust and Manager for International and Higher Education together with the the functions, powers and duties conferred first graduate group of the Bachelor of Applied Management. upon it by the Constitution, applicable Law • establishing vision, mission and strategic honesty. The Board executes its duties and subordinate instruments, and relevant directions for the Institute and ensuring in accordance with the Public Sector industrial awards. the Institute operates in accordance with Director’s Code of Conduct.

16 Sunraysia Institute of Technical and Further Education> 17 Board Chair – Leonie Burrows Committees of the Board ensuring that appropriate compliance ORGANISATIONAL business opportunities for the Institute Ministerial Board Chair, The Board has established an active processes are in place, managing the leading to increased training activity. appointed 16 April 2013 committee structure that capitalises on processes of recruitment, induction and MANAGEMENT the skills and experiences of individual performance review of Board Directors, Chief Executive Officer Director Operations Leonie is an experienced Management Board Directors. The Committees are making recommendation to the Board on all The Directorate is responsible for This division is responsible for financial Consultant and Company Director who established to assist the Board in meeting matters relating to the CEO’s employment implementing the strategic direction as management and the management of also has local government, horticulture its constitutional duties in the management and executive remuneration matters, and established by the Institute’s Board. This resources and services to ensure quality and education CEO experience. She has of the Institute through the application of reviewing new and existing Institute policies. includes developing the strategic and services are developed and maintained in extensive skills in leadership, financial sound corporate governance practices. underpinning plans, allocating resources accordance with the Institute’s objectives. management, governance and project The Board committee structure is subject Audit, Finance and Risk and ensuring that policies and reports management. In her consulting business, to annual review and committees have clear Committee membership are in place for the Institute to meets its Director Organisational she specialises in organisational analysis, objectives and terms of reference which are legislative and contractual obligations. (as at 31 December 2015) strategic planning, business planning, consistent with the corporate governance Capability Mr Geoffrey Dea (Chair) The primary objective of this division is to research and training and facilitation. objectives of the Board. The Committees are Director Education Mrs Leonie Burrows (Board Chair) drive the strategic capability of the Institute Leonie is also a partner in Burrows Jewellers led by the Board and are not management The primary objective of this Division Mr Rod Markwell through the development, implementation retail business. driven, and operate in accordance with the is driving training activity through the Ms Inga Dalla Santa (co-opted) and delivery of the Workforce Development following guidelines: planning, development, provision and Ms Amanda Phillips (co-opted 24 February Strategy. Leonie is a current member of the • All members are non-Executive 2015 – 30 November 2015. Member from reporting of quality, responsive and flexible Institute’s Audit, Finance and Risk Directors 1 December 2015) training services for students, employers Committee, the Governance Committee, • All members are independent members and the community. TSAF Project Control Group, and TAFE Kids • The Chairperson of the Board cannot be The Audit, Finance and Risk Committee Inc. Project Control Group. Leonie is a very the Chairperson of a Committee links the Board with the Institute’s Director Client Services active member of the community and heads • The Chair of each Committee is selected continuous audit program, and provides The primary objective of this division is to a number of Boards and Committees, with annually by the Board Chair and advice and recommendation on matters provide services that support both domestic positions including; endorsed by the Board. pertaining to financial and risk management Chair, Victorian TAFE Association and international students and to cultivate strategies. The Committee is charged with Chair, Sunraysia Community Health Governance Committee responsibility for overseeing the scope Services membership and execution of the internal audit plan, Director, Murray Primary Health Network Top Left Tracey Forbes > Director Education (as at 31 December 2015) reviewing the integrity and effectiveness of Top Right Jenny Grigg > Director Client Services Committee Member, Loddon Mallee Bottom Left Frank Piscioneri > Director Operations Ms Kay Martin (Chair) the Institute’s financial reporting systems Regional Development Australia Bottom Right Anthony Mills > Director Organisational Capability Mrs Leonie Burrows (Board Chair) and controls, monitoring the effectiveness Committee Member, Northern Mallee Ms Trudie Chant of the Institutes processes for ensuring Leadership Program Mr Danny Grzan* compliance with its fiduciary and statutory Chair, Organising Committee, 2016 Mr Terry Jennings obligations in relation to financial reporting, Victorian State Fire Brigade Mr Owen Russell oversight of the preparation of financial Championships Ms Lydia Senior statements and other published financial (from 1 December 2015) data, conducting regular reviews of the Board Directors in 2015 Institute’s Risk Management Framework, Mrs Leonie Burrows (Chair) * Mr Grzan was a member of the strategic risk register and Fraud Ms Trudie Chant Governance Committee until he concluded Management Plan, ensuring appropriate Mr Geoffrey Dea his board term on 31 March 2015. He was subsequently co-opted to the committee management of matters pertaining to risk Mr Danny Grzan from 1 April 2015 to 30 November 2015 and fraud control, and reviewing new and (term concluded 31 March 2015) inclusive. existing financial and accounting policies Mr Terry Jennings and procedures. Mr Rodney Markwell The Governance Committee assists the Ms Kay Martin Board to oversee the Institute’s corporate Ms Amanda Phillips governance and ensure compliance with (appointed 1 December 2015) the Institute’s statutory obligations. The Mr Owen Russell Committee has stewardship of maintaining Ms Lydia Senior an appropriate governance framework (appointed 1 December 2015) and driving a corporate culture of accountability, integrity and transparency,

18 Sunraysia Institute of Technical and Further Education> 19 Organisational Structure Compliance Information

The Institute’s 2015 Annual Report has Requests can also be lodged online at these fees can be obtained from been prepared in accordance with the www.foi.vic.gov.au the relevant teaching department. Minister Department of Education requirements of all relevant legislation and Access charges may also apply once and Training (DET) subordinate instruments, including, but not documents have been processed and a A list of fees and charges is available on the Hon. Steve Herbert limited to, the following: decision on access is made; for example Institute’s website - www.sunitafe.edu.au • Education and Training Reform Act 2006 photocopying and search and retrieval (ETRA) charges. Maintenance and • TAFE institute constitution Office of the Secretary Capital Works • Directions of the Minister for Training Further information regarding Freedom Secretary Gill Callister The Sunraysia Institute of TAFE takes all and Skills (or predecessors) of Information can be found at reasonable steps to ensure that Institute • TAFE institute Commercial Guidelines www.foi.vic.gov.au. Higher Education Skills Group (HESG) buildings conform to relevant building Deputy Secretary Craig Robertson • TAFE institute Strategic Planning standards and codes; including the National Guidelines National Competition Policy Construction Code (NCC), the Victorian • Public Administration Act 2004 The Institute has established mechanisms Building Act 1993, and Victorian Building • Financial Management Act 1994 to ensure that the National Competition Regulations 2006. • Freedom of Information Act 1982 SuniTAFE Board Chair Policy including the requirements of the • Building Act 1993 Leonie Burrows following Government Policy Statements Institute buildings in existence prior • Protected Disclosure Act 2012 are observed; ‘Competitive Neutrality: to the introduction of the Building Act • Victorian Industry Participation Policy Statement of Victorian Government Policy’ 1993 comply with the relevant building Act 2003 Audit, Finance and Risk Governance Committee and ‘Victorian Government Timetable for regulations existent at that time. The Committee Chair Chair Kay Martin the Review of Legislative Restrictions on Institute’s ongoing maintenance programs Geoffrey Dea Freedom of Information Competition’ and any subsequent reforms. and any improvements or alterations Sunraysia Institute of TAFE has to buildings are completed in a manner Chief Executive Officer implemented procedures which, subject External Reviews compliant with the relevant requirements Win Scott to privacy and confidentiality provisions, There were no external reviews of the of the Building Act 1993. Directorate facilitate all reasonable requests for Institute in 2015. - Planning and Reporting information from students, staff and the SuniTAFE retains all plans and - Quality and Compliance general public without recourse to the Non-Academic Student Fees documentation for building extensions - Executive Projects Freedom of Information Act 1982. The Institute levies a compulsory student and new buildings. Upon completion services and amenities fee. The fee is fully of construction, the Institute obtains Access to documents may be obtained applied to the provision of funding for Certificates of Occupancy and Final Organisational Capability Education Director Operations Director Client Services through written request to the Freedom student recreation, counselling and welfare Inspection from the relevant Building Director Anthony Mills Tracey Forbes Frank Piscioneri Director Jenny Grigg of Information Manager, as detailed in s17 and other non-academic support services. Surveyors. of the Freedom of Information Act 1982. The processes for the collection and In summary, the requirements for making disbursement of the services and amenities In 2015 the institute undertook major works a request are: fees are managed by the Institute and (greater than $50,000) as follows: • it should be in writing; HR Services Rural Campuses Business Improvement Farm are not paid to any student organisations. • Kinder room extension, TAFE Kids Inc., • it should identify as clearly as possible TAFE Kids Inc. Industry Skills ICT Services Learning Resource Centre Total Student Services and Amenities Fees Mildura Campus Redevelopment, Community International & Higher Finance Bookshop which document is being requested; and collected for the year ending 31 December incorporating the Dulka Yuppata Childcare Centre Education Student Administration Printroom • it should be accompanied by the 2015 by the Institute was $232,402. Cultural and Training Centre (due for Education Projects Buildings and Properties Student Support Services appropriate application fee (the fee may completion Maydulka 2016) Education Support Residences Robinvale Campus be waived in certain circumstances). • Swan Hill Campus Learning Commons Dulka Yuppata OH&S Mallee Campus Materials fees are separate and also and Trades Classrooms (Due for Environment Business Development Formal requests for access to documents compulsory. These fees enable students to completion February 2016) Capital Projects Media or records are required to be directed to: access the resources needed for completion of their course. Materials charges are set Mr Anthony Mills by each department at SuniTAFE, and Victorian Industry Freedom of Information Officer/Director vary from course to course. In 2015 total Participation Policy (VIPP) Organisational Capability materials fees were $657,582 compared to No contracts applicable to the VIPP were Sunraysia Institute of TAFE 2014 $634,342. Further information about commenced in 2015. PO Box 1904, Mildura VIC 3502 20 Sunraysia Institute of Technical and Further Education> 21 Protected Disclosure funded by Victorian Development travel by employees is approved and under the control of the Institute. Measure KPI 2014 2015 Centre initiatives. undertaken in accordance with Victorian - Implementation, testing and 1 Act 2012 Incidents Employees Public Sector Travel Principles and the maintenance of an improved Duress The Protected Dissclosure Act 2012 Minor incidents reported 12 15 Australian Tax Office guidelines. Alarm system. (formerly the Whistleblowers Protection Industrial Relations Students In 2015 the Institute’s policies on domestic - Continued workplace inspections across Act 2001) encourages and assists people The Institute works closely with employees Minor incidents reported 28 16 and overseas travel were audited, reviewed the campuses resulting in the in making disclosures of improper conduct and both the National Tertiary Education Major incidents reported 0 1 in accordance with the 2006 Victorian identification and resolution of hazards by public officers and public bodies. The Act Union (NTEU) and the Australian Education Visitors Public Sector Travel Principles issued by the throughout the year. provides protection to people who make Union (AEU) to negotiate replacement Minor incidents reported 1 0 Department of Premier and Cabinet and - Safety audits conducted during 2 disclosures in accordance with the Act agreements for employees. Regular Claims WorkCover claims 0 0 approved by the Board. September on both the Mildura and and establishes a system for the matters meetings were conducted in 2015 as per Total time lost (hours) 0.00 0.00 Swan Hill building extension projects. disclosed to the negotiation meeting schedule. There Fatalities - - - Workplace Health and Safety - Extensions and changes to car parks at 3 be investigated and rectifying action to has been no industrial action during Claim costs Total paid on claims $267.04 0 Incident management Mildura campus for improved safety. be taken. this period. Work Cover premium $131,433 $96,543.04 The Workplace Health and Safety Industry premium rate 0.9500% 0.9500% Co-ordinator reports to the Facilities In 2015 the incident/injury rate remained The Institute does not tolerate improper Carer’s Recognition Act 2013 Institute premium rate 0.7428% 0.7164% (Carer’s Act) Manager, Building and Properties. relatively low. Aside from one case, injuries conduct by employees, nor the taking Return to work 0 0 The Sunraysia Institute of TAFE has taken have been minor. There have been no VWA of reprisals against those who come The goal of the Institute’s occupational Management commitment all practical measures to comply with its visits and no WorkCover claims for 2015. 4 forward to disclose such conduct. It is health and safety strategy is to ensure Consultation and Mildura 5 4 obligations under the Carers Recognition There was one minor hand injury that committed to ensuring transparency and that all staff, students, contractors and participation Swan Hill 5 5 Act 2012 to ensure staff have an awareness occurred at the site of the Swan Hill 5 accountability in its administrative and visitors remain safe and healthy during their Risk management Hazards identified and resolved 76 37 and understanding of the care relationship building extension project. Apart from this management practices and supports the involvement with the Institute. The following Training 6 63 24 principles set out in the Act. both building projects at the Mildura and making of disclosures that reveal corrupt action has been taken in 2015 in respect to Swan Hill campuses have remained safe. conduct, conduct involving a substantial achieving this goal: 1. The Institute has an equal opportunity policy Contractors have received work health Work Place Health and Safety applied by the Institute ensures that all incidents are reported and mismanagement of public resources, or - The Emergency Management Plan has recorded for staff, students, contractors and visitors. Hard copy and electronic records are maintained. With one exception, in place that entitles staff to reasonable and safety induction and sites have all incidents were minor – slips, trips, falls, hand cuts and burns. The one major injury was to a student who sustained a tear conduct involving a substantial risk to public been trialled, reviewed and refined flexibility in working arrangements where sign-in rules. in a tendon in her arm as a result of a manual handling incident. This student has received follow-up medical treatment for health and safety or the environment. across all campuses during the year. the injury. There were no Victorian WorkCover Authority notifications during the 2015 reporting period. needed to accommodate their carer The Institute will take all reasonable steps Steps taken have included: 2. There were no WorkCover claims presented during 2015 and no lost time. responsibilities. Where hazards have been identified, steps 3. Due to no WorkCover claims during 2015, the Institute Work Cover premium rate and premium have been reduced from the to protect people who make such have been taken to eliminate or effectively 2014 level. disclosures from any detrimental action In delivering services to the community, the • Initial Warden training for new Wardens 4. Health, safety and wellbeing activities for staff included participation in the 10,000 Step Challenge, hearing tests and control the risk. In instances where the in reprisal for making the disclosure. It will Institute is guided by its access and equity at Mildura and Swan Hill campuses. OH&S Committee Meetings. immediate solution has not been obvious, 5. Hazards were identified through designated work group area inspections, the Institute’s hazard/near miss reporting system, also afford natural justice to the person policy which promotes adherence to the • First Aid and HSR training to meet risk assessments have been conducted and the Institutes’s injury reporting and investigating system and the Occupational Health and Safety Committee. who is the subject of the disclosure to the principles of access and equity and directs needs across the Institute. 6. New staff induction - All new employees were inducted during 2015. The Occupational Health & Safety Committees at both documented with research and the use of the Mildura & Swan Hill campuses operated as required under the Occupational Health & Safety Act. extent it is legally possible. that Institute practices be inclusive and • Desktop audits for Mildura Campus the “Hierarchy of Control” leading to the should not unreasonably prevent individuals conducted by a qualified external most suitable solution. No requests under the Freedom of from accessing services or participating trainer. Information Act 1982 were received by the in learning. Staff and/or students in a • Evacuation drills at Mildura and Swan The Institute’s performance against work Institute during 2015, nor any disclosures carer’s role are encouraged to access Hill campuses – external observer. health and safety management measures in referred to or from the Ombudsman or a range of services offered by the Institute, • Change to evacuation procedures for 2015 compared with 2014 are outlined taken over by the Ombudsman. There including Student Support Services such improved efficiency. in the table above. were no recommendations made by the as counselling, disability support and • Preparation of maps redefining Ombudsman under the Act that related participation services. evacuation zones for Mildura campus. to the Institute. • Senior staff have received training WorkCover and Injury New staff are made aware of these policies from CFA officers on the use of Management Performance Recruitment as part of their induction. In addition, a fire tankers. There were no WorkCover claims presented In 2015, 17 new positions were created formal program of awareness raising during 2015 and no lost time. - Training of First Aid officers and and 34 staff departures occurred during about the Act was conducted in 2015. maintenance of the First Aid kit. the reporting period, resulting in a turnover - Review of procedures for general rate of 12.2%. This resulted in 53 staffing Victorian Public Sector Institute safety. movements throughout 2015. In 2015 Travel Principles - Tree pruning has begun to meet the $125,722 was spent on staff learning and The Sunraysia Institute of TAFE has formal recommendations of an arborist development activities with $33,000 of this mechanisms in place to ensure that all engaged to inspect and report on trees

22 Sunraysia Institute of Technical and Further Education> 23 Additional Information - details of overseas visits undertaken Enquiries regarding details of any of the WORKFORCE INFORMATION Available on Request including a summary of the objectives above should be addressed to: and outcomes of each visit; Anthony Mills Table 1. Full time Equivalents (FTE) staffing trends as at June 30 2015 In compliance with the requirements of - details of major promotional, public Director Organisational Capability 2012 2013 2014 2015 the Standing Directions of the Minister relations and marketing activities Sunraysia Institute of TAFE 222 230 208 202 for Finance, details in respect of the items undertaken by the Institute to develop PO Box 1904, Mildura VIC 3502 listed below have been retained by the community awareness of the Institute Ph: 03 50223705 Table 2. Workforce data for the current and previous reporting period as at Institute and are available on request, and its services; Email: [email protected] June 30 2015 subject to the provisions of the Freedom - details of assessments and measures Web: www.sunitafe.edu.au Year Female Male Total of Information Act 1982. undertaken to improve the occupational EFT People EFT People EFT People - a statement that declarations of health and safety of employees; 2014 119 208 89 115 208 323 pecuniary interests have been duly Major Commercial Activity - a general statement on industrial 2015 122 202 80 111 202 313 completed by all relevant officers; In 2015 the Sunraysia Institute of TAFE relations within the entity and details of Please note: Data for Table 1 and Table 2 is sourced from reports to the - details of shares held by a senior did not undertake any major commercial time lost through industrial accidents Victorian Public Sector Commission and are a snapshot of the final pay run officer as nominee or held beneficially activities. This is reported in accordance and disputes; in June for each year as per Guidance Note to FRD 29A. in a statutory authority or subsidiary; with section 45 of the Financial - a list of major committees sponsored Management Act 1994, together with - details of publications produced by the Table 3. Summary of employment by status and gender for 2015 by the Institute, the purposes of each Institute about itself, and how these can matters listed under Commercial Guideline committee and the extent to which the Snapshot as at 30 June 2015 be obtained; 10 (clause 27). purposes have been achieved; and Mode of Employment Female Male ATSI Total - details of changes in prices, fees, - details of all consultancies and Permanent full time 61 61 7 122 charges, rates and levies charged by Controlled Entities contractors including: Permanent part time 44 7 0 51 the Institute; Under section 45 of the Financial • consultants/contractors engaged; Temporary full time 34 20 0 54 - details of any major external reviews Management Act 1994 a copy of the • services provided; and Temporary part time 11 8 0 19 carried out on the Institute; accounts of TAFE Kids Inc. prepared in • expenditure committed to for each Casual 52 15 0 67 - details of major research and accordance with the requirements of the engagement. Total 202 111 7 313 development activities undertaken by Financial Management Act 1994 is included in the audited Financial Report; Note 22. the Institute; Table 4. Employment by classification Snapshot as at 30 June 2015 Classification EFT People Executive 5 5 Teaching 89.53 146 PACCT 91.26 134 Others (agreed contracts) 15.99 28 Total 202 313

Table 5. Details of ongoing employees compared with fixed term and casual employees for the current and previous reporting period Ongoing Employees Fixed term & Casual Employees Employees Full time Part time FTE FTE (Headcount) (Headcount) (Headcount) 30 June 2014 181 129 52 151 57 30 June 2015 173 122 51 136 65

24 Sunraysia Institute of Technical and Further Education> 25 Table 6. Details of employment levels in 2015 compared with previous year. Employment and in Schedule A in the Sunraysia Institute underperformance, reviewing personal 30 June 2014 30 June 2015 Conduct Principles of TAFE Enterprise (PACCT) Agreement grievances, and selecting on merit. 2011. Ongoing Fixed term Ongoing Fixed term SuniTAFE is committed to applying merit & Casual & Casual - Teaching employees are classified in a SuniTAFE introduced a suite of detailed and equity principles when appointing Employee Employee manner compliant with Schedule 1 and employment policies, including policies staff. The selection processes ensure that Gender Employee FTE FTE Employee FTE FTE 5 of the Victorian TAFE Teaching Staff with respect to grievance resolution, (Headcount) (Headcount) applicants are assessed and evaluated Multi Business Agreement (MBA) 2009. recruitment, redeployment, and managing Male 69 64 25 68 57 22 fairly and equitably on the basis of the key diversity. Policies with respect to managing Female 112 87 32 105 79 43 selection criteria and other accountabilities The Institute’s Code of Conduct, which underperformance and discipline were Age without discrimination. Employees have is reviewed annually, provides guidance produced and have been implemented been correctly classified in workforce data Under 25 5 4 3 3 3 5 to all staff on expected behaviour and across the organisation. collections. 25-34 29 23 8 24 18 11 professional conduct and is based on 35-44 50 41 17 47 35 19 the Institute’s expected standards and The Institute complies with the Public Consultants 45-54 48 41 10 42 35 10 Victorian Public Sector values. SuniTAFE is Administration Act 2004 Employment and In 2015, there was one consultancy committed to equal opportunity and fair 55-64 43 38 16 49 41 17 Conduct Principles in the following ways: where the total fees payable to the and transparent processes in all human Over 64 6 4 4 8 4 3 - Employment decisions are based consultants were $10,000 or greater and resource management procedures. Classification on merit. no consultancies individually valued at less PACCT 1 3 1 2 4 2 1 - Employees are treated fairly and than $10,000. The Public Administration Act 2004 PACCT 2 31 23 3 27 20 9 reasonably. abolished the Office of Commissioner for PACCT 3 14 10 1 14 9 3 - Equal employment opportunity is Total expenditure during 2015 in relation Public Employment and established the to these consultancies was $727,677 PACCT 4 17 16 0 15 14 1 provided. State Services Authority. Notwithstanding, - Employees have reasonable avenues [excl. GST]. PACCT 5 14 13 1 15 12 0 the Institute continues to implement the of redress against unfair or PACCT 6 8 5 1 7 4 2 previous directions of the Commissioner unreasonable treatment. Details of individual consultancies (where PACCT 7 6 6 0 6 4 0 for Public Employment with respect - PAACT employees are classified in a fees paid were greater than $10,000) PACCT8 4 4 0 4 3 0 to upholding public sector conduct, manner compliant with PACCT staff can be viewed at T4CAS1 0 0 5 0 0 6 managing and valuing diversity, managing classification guidelines and the http://www.sunitafe.edu.au/reports/ T5CAS1 0 0 1 0 0 1 Classification Descriptions as listed T1 0 0 1 0 0 0 T2 1 1 10 1 1 9 T3 0 0 0 0 0 0 T4 14 12 5 10 9 6 T5 43 39 8 44 36 8 SE1 5 5 1 6 6 2 SE2 1 1 0 1 1 0 SE3 8 8 0 8 6 0 NONEXEC.1 2 2 4 2 2 2 EXEC.1 0 0 4 0 0 4 CEO 0 0 1 0 0 1 CSE2 1 1 0 1 1 0 CSE3 1 0 5 1 1 7 CSE4 7 5 3 5 4 3 ESA6 0 0 0 1 1 0 DIRL3.6.9 1 1 0 1 1 0 Please note: Employee classifications for Table 6 are correctly allocated as per the TAFE Sector ASCO-ANZSCO Transition Table.

26 Sunraysia Institute of Technical and Further Education> 27 Disclosure Index

The Sunraysia Institute of TAFE has KEY TO ABBREVIATIONS Compliance Attestation FRD = Financial Reporting Directions (as at August 2015) I, Leonie Burrows certify that the Sunraysia undertaken this process as part of the available at: http://www.dtf.vic.gov.au/Publications/Government-Financial-Management-publications/Financial-Reporting-Policy/Financial-reporting-directions-and-guidance annual insurance renewal. The Audit Institute of TAFE has complied with the SD = Standing Directions (as at May 2015) mandatory requirements of the Victorian committee verifies this assurance. available at: http://www.dtf.vic.gov.au/Publications/Government-Financial-Management-publications/Financial-Management-Compliance-Framework/Standing-Directions-of-the- Minister-for-Finance Government Risk Management Framework and has risk management processes CG = Commercial Guidelines available at: http://www.education.vic.gov.au/about/department/legislation/Pages/guidelines.aspx in place consistent with the Australian/ New Zealand Risk Management Standard. Leonie Burrows Item No. Source SUMMARY OF REPORTING REQUIREMENT Page No. Further, the Institute has an internal control Board Chair REPORT OF OPERATIONS - CHARTER AND PURPOSE system in place that enables the executive Sunraysia Institute of TAFE 1 FRD 22G Manner of establishment and the relevant Minister 2, 17, 20, 74 to understand, manage and satisfactorily 29/03/2016 2 FRD 22G Purpose, functions, powers and duties linked to a summary of activities, programs 2, 15, 17 control risk exposures. The audit and achievements committee verifies this assurance and that Disclosure index 3 FRD 22G Nature and range of services provided including communities served 2 the risk profile of the Sunraysia Institute of The annual report of the Institute is MANAGEMENT AND STRUCTURE TAFE has been critically reviewed within the prepared in accordance with all relevant 4 FRD 22G Organisational structure and chart, including responsibilities 19-20 last 12 months. Victorian legislations and pronouncements. 5 FRD 22G Names of Board members 18 This index has been prepared to facilitate FINANCIAL AND OTHER INFORMATION identification of the Institute’s compliance 6 FRD 03A Accounting for Dividends N/A with statutory disclosure requirements. 7 FRD 07A Early adoption of authoritative accounting pronouncements 48, 49, 50, 51 Leonie Burrows 8 FRD 10 Disclosure Index 29-31 Board Chair 9 FRD 17B Long Service leave and annual leave for employees 47 Sunraysia Institute of TAFE 29/03/2016 10 FRD 20A Accounting for State motor vehicle lease arrangements prior to 1 Feb 2004 N/A 11 FRD 22G Operational and budgetary objectives, performance against objectives and achievements 5-15 12 FRD 22G Occupational health and safety statement including performance indicators, performance against 22, 23 Attestation for compliance those indicators. Reporting must be on the items listed at (a) to (e) in the FRD with Ministerial Standing 13 FRD 22G Workforce data for current and previous reporting period including a statement on employment 25, 26 Direction 4.5.5.1 – Insurance and conduct principles and that employees have been correctly classified in the workforce data collections I, Leonie Burrows certify that the Sunraysia 14 FRD 22G Summary of the financial results for the year including previous 4 year comparisons 15 Institute of TAFE is required to insure with 15 FRD 22G Significant changes in financial position 15 the VMIA under the Victorian Managed 16 FRD 22G Key initiatives and projects, including significant changes in key initiatives and projects from 3, 4, 8, 9, 10, 16 Insurance Authority ACT 1996 and as previous years and expectations for the future such have insured appropriately, having 17 FRD 22G Post-balance sheet date events likely to significantly affect subsequent reporting periods 15, 76 regard to relevant Government guidelines 18 FRD 22G Summary of application and operation of the Freedom of Information Act 1982 21 and directions as per Ministerial Direction 19 FRD 22G Discussion and analysis of operating results and financial results 10, 11, 15 4.5.5.1- insurance, the Sunraysia Institute 20 FRD 22G Significant factors affecting performance 15 of TAFE has; 21 FRD 22G Where a TAFE has a workforce inclusion policy, a measurable target and report on the progress N/A a) Determined the appropriate level of towards the target should be included insurance in consultation with the VMIA. 22 FRD 22G Schedule of any government advertising campaign in excess of $100,000 or greater (exclusive of N/A b) Maintained a current register of all GST) include list from (a) – (d) in the FRDS insurance and indemnities and makes 23 FRD 22G Statement of compliance with building and maintenance provisions of the Building Act 1993 21 this available to the VMIA on request. 24 FRD 22G Statement, where applicable, on the implementation and compliance with the National Competition 21 Policy c) Recorded the valuation and basis for 25 FRD 22G Summary of application and operation of the Protected Disclosure Act 2012 22 valuation of self-insured retained 26 FRD 22G and Summary of Environmental Performance including a report on office based environmental impacts 13, 14, 15 losses. FRD 24C d) Provided information on claims management capability, resources, structures and processes for any self- insured retained losses to the VMIA.

28 Sunraysia Institute of Technical and Further Education> 29 Item No. Source SUMMARY OF REPORTING REQUIREMENT Page No. Item No. Source SUMMARY OF REPORTING REQUIREMENT Page No. 27 FRD 22G Consultants: 27 46 FRD 102 Inventories 45, 46, 54 Report of Operations must include a statement disclosing each of the following 47 FRD 103F Non-financial physical assets 46, 54, 55 1. Total number of consultancies of $10,000 or more (excluding GST) 2. Location (eg website) of where details of these consultancies over $10,000 have been made 48 FRD 104 Foreign currency 39 publicly available 49 FRD 105A Borrowing costs 43 3. Total number of consultancies individually valued at less than $10,000 and the total 50 FRD 106 Impairment of assets 44 expenditure for the reporting period AND for each consultancy more than $10,000, a schedule is to be published on the TAFE institute 51 FRD 107A Investment properties N/A website listing: 52 FRD 109 Intangible assets 46 • Consultant engaged 53 FRD 110 Cash flow statements 38 • Brief summary of project • Total project fees approved (excluding GST) 54 FRD 112D Defined benefit superannuation obligations 65 • Expenditure for reporting period (excluding GST) 55 FRD 113A Investment in subsidiaries, jointly controlled entities and associates 39, 40, 41, 75 • Any future expenditure committed to the consultant for the project 56 FRD 114A Financial instruments – general government entities and public non-financial corporations 66-73 28 FRD 22G Statement, to the extent applicable, on the application and operation of the Carers Recognition Act 22 2012 (Carers Act), and the actions that were taken during the year to comply with the Carers Act 57 FRD 119A Transfers through contributed capital 48 29 FRD 22G List of other information available on request from the Accountable Officer, and which must be 24 58 FRD 120I Accounting and reporting pronouncements applicable to the reporting period 48, 49, 50, 51 retained by the Accountable Officer (refer to list at (a) – (l) in the FRD) 59 Legislation The TAFE institute Annual Report must contain a statement that it complies with all relevant 21 30 FRD 25B Victorian Industry Participation Policy Disclosures 21 legislation, and subordinate instruments, (and which should be listed in the Report) including, but not limited to, the following: 31 FRD 26A Accounting for VicFleet motor vehicle lease arrangements on or after 1 February 2004 N/A • Education and Training Reform Act 2006 (ETRA) 32 FRD 29A Workforce Data Disclosures on the public service employee workforce 25, 26, 74, 75 • TAFE institute constitution Note: TAFEs can report on a calendar year basis (ie not financial year basis) • Directions of the Minister for Training and Skills (or predecessors) 33 SD 4.5.5(a) Provide an attestation that risk identification and management is consistent with AS/NZS 28 • TAFE institute Commercial Guidelines ISO31000:2009 or equivalent • TAFE institute Strategic Planning Guidelines 34 SD 4.2(g) Qualitative and Quantitative information to be included in Report of Operations, and provide general 2-16 • Public Administration Act 2004 information about the entity and its activities, together with highlights and future initiatives • Financial Management Act 1994 35 SD 4.2(h) The Report of Operations must be prepared in accordance with requirements of the relevant 32 Freedom of Information Act 1982 Financial Reporting Directions • Building Act 1993 • Protected Disclosure Act 2012 36 SD 4.2(j) The Report of Operations must be signed and dated by a member of the Responsible Body 0, 32 • Victorian Industry Participation Policy Act 2003 37 CG 10 Major Commercial Activities 24 60 ETRA s3.2.8 Statement about compulsory non-academic fees, subscriptions and charges payable in 2015 21 (clause 27) 61 Policy Statement that the TAFE institute complies with the Victorian Public Sector Travel Principles 22 38 CG 12 Controlled Entities 24 (clause 33) 62 Key Institutes to report against: 11 FINANCIAL REPORT - FINANCIAL STATEMENTS REQUIRED UNDER PART 7 OF THE FINANCIAL MANAGEMENT ACT 1994 Performance • KPIs set out in the annual Statement of Corporate Intent; and Indicators • Employment costs as a proportion of training revenue; 39 SD 4.2(a) The financial statements must be prepared in accordance with: 32, 39-51 • Training revenue per teaching FTE; • Australian accounting standards (AAS and AASB standards) and other mandatory professional • Operating margin percentage; reporting requirements (including urgent issues group consensus views); • Training Revenue diversity • Financial Reporting Directions; and 63 PAEC and • Financial and other information on initiatives taken or strategies relating to the institute’s 9-10 • business rules VAGO overseas operations 40 SD 4.2(b) The financial statements are to comprise the following: 35-76 (June 2003 • Nature of strategic and operational risks for overseas operations • income statement; Special • Strategies established to manage such risks of overseas operations • balance sheet; Review item • Performance measures and targets formulated for overseas operations • statement of recognised income and expense; 3.110) • The extent to which expected outcomes for overseas operations have been achieved • cash flows statement; and • notes to the financial statements. OTHER REQUIREMENTS UNDER STANDING DIRECTION 4.2 / FINANCIAL MANAGEMENT ACT 1994 (FMA) 41 SD 4.2(c) and The financial statements must contain such information as required by the Minister and be 32 FMA s 49 prepared in a manner and form approved by the Minister. They must be signed and dated by the Accountable Officer, CFAO and a member of the Responsible Body, in a manner approved by the Minister, stating whether, in their opinion: • the financial statements present fairly the financial transactions during the reporting period and the financial position at the end of the period; • the financial statements are prepared in accordance with this direction and applicable Financial Reporting Directions; and • the financial statements comply with applicable Australian accounting standards (AAS and AASB standards) and other mandatory professional reporting requirements (including urgent issues group consensus views).

42 SD 4.2(d) Rounding of amounts 48 43 SD 4.2(e) Review and recommendation by Audit Committee or responsible body prior to finalisation and 28 submission OTHER REQUIREMENTS AS PER FINANCIAL REPORTING DIRECTIONS IN NOTES TO THE FINANCIAL STATEMENTS 44 FRD 11A Disclosure of ex-gratia payments N/A 45 FRD 21B Disclosures of Responsible Persons, Executive Officer and Other Personnel (Contractors with 74, 75 significant management responsibilities) in the Financial Report

30 Sunraysia Institute of Technical and Further Education> 31 Declaration Statement

Financial Report for Year Ended 31 December, 2015 Declaration by The Board Chair Chief Executive Officer and Chief Finance and Accounting Officer

We certify that the attached financial statements for the Sunraysia 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 professional reporting requirements.

The following statements contain information as required by the Minister and are prepared in a manner and form approved by the Minister.

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 report, presents fairly the financial transactions during the year ended 31 December 2015 and financial position of the Institute as at 31 December 2015.

At the date of signing this financial report, we are not aware of any circumstance that would render any particulars included in the financial report 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 became due and payable.

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

Board Chair Chief Executive Officer Leonie Burrows Win Scott

24/03/2016 24/03/2016 Place: Mildura Place: Mildura

Chief Finance & Accounting Officer Frank Piscioneri

24/03/2016 Place: Mildura

32 Sunraysia Institute of Technical and Further Education> 33 Financial Statements for Sunraysia Institute of TAFE

Comprehensive Operating Statement for the year ended 31 December 2015 Consolidated Institute 2015 2014 2015 2014 Continuing operations Note $’000 $’000 $’000 $’000 Income from transactions Government contributions - operating 2(a)(i) 21,878 14,760 21,878 14,760 Government contributions - capital 2(a)(ii) 5,420 288 5,420 - Sale of goods and services 2(b) 9,435 8,764 8,244 7,625 Interest 2(c) 111 90 108 88 Other income 2(d) 42 121 24 92 Total income from transactions 36,886 24,023 35,674 22,565

Expenses from transactions Employee expenses 3(a) 18,106 19,162 17,111 18,165 Depreciation and amortisation 3(b) 1,712 2,223 1,694 2,209 Grants and other transfers 3(c) - 23 - 23 Supplies and services 3(d) 8,329 7,988 8,186 7,883 Other operating expenses 3(e) 2,284 2,313 2,256 2,246 Total expenses from transactions 30,431 31,709 29,247 30,526 Net result from transactions (net operating balance) 6,455 (7,686) 6,427 (7,961)

Other economic flows included in net result Net gain/(loss) on non-financial assets 4(a) (37) (2,715) (37) (2,715) Net gain/(loss) on financial instruments 4(b) (55) (57) (55) (48) Other gains/(losses) from other economic flows 4(c) (122) (193) (110) (186) Total other economic flows included in net result (214) (2,965) (202) (2,949) Net result from continuing operations 6,241 (10,651) 6,225 (10,910)

Comprehensive result 6,241 (10,651) 6,225 (10,910)

The comprehensive operating statement should be read in conjunction with the notes to the financial statements.

34 Sunraysia Institute of Technical and Further Education> 35 Financial Statements

Balance Sheet as at 31 December 2015 Statement of Changes in Equity Consolidated Institute for the year ended 31 December 2015 2015 2014 2015 2014 Physical Assets Note $’000 $’000 $’000 $’000 asset Financial assets revaluation Accumulated Contributions Cash and deposits 14(a) 5,228 2,608 4,964 2,084 surplus surplus by owner Total Receivables 5 1,734 2,614 1,820 2,716 Consolidated Investments and other financial assets 6 106 103 36 36 Note $’000 $’000 $’000 $’000 At 1 January 2014 22,181 15,715 6,997 44,893 Total financial assets 7,068 5,325 6,820 4,834 Net result for the year - (10,651) - (10,651) Year ended 31 December 2014 22,181 5,064 6,997 34,242 Non-financial assets Inventories 7 108 138 108 138 Net result for the year 6,241 6,241 Property, plant and equipment 8 35,982 34,478 35,191 33,998 Year ended 31 December 2015 22,181 11,305 6,997 40,483 Intangible assets 9 3,313 3,605 3,313 3,605 Other non-financial assets 10 524 244 524 244 Physical asset Total non-financial assets 39,927 38,465 39,136 37,985 revaluation Accumulated Contributions Total assets 46,995 43,790 45,956 42,819 surplus surplus by owner Total Institute Note $’000 $’000 $’000 $’000 Liabilities At 1 January 2014 21,969 15,331 6,997 44,297 Payables 11 3,511 6,634 3,447 6,613 Net result for the year - (10,910) - (10,910) Provisions 12 2,965 2,880 2,861 2,785 Year ended 31 December 2014 21,969 4,421 6,997 33,387 Other liabilities 18 36 34 36 34 Net result for the year 6,225 6,225 Total liabilities 6,512 9,548 6,344 9,432 Year ended 31 December 2015 21,969 10,646 6,997 39,612

Net assets 40,483 34,242 39,612 33,387 The statement of changes in equity should be read in conjunction with the notes to the financial statements.

Equity Accumulated surplus/(deficit) 11,305 5,064 10,646 4,421 Physical asset revaluation surplus 13(a) 22,181 22,181 21,969 21,969 Contributed capital 6,997 6,997 6,997 6,997 Net worth 40,483 34,242 39,612 33,387 Commitments for expenditure 15 6,271 760 6,271 430 Contingent assets and contingent liabilities 16 - - - -

The balance sheet should be read in conjunction with the notes to the financial statements.

36 Sunraysia Institute of Technical and Further Education> 37 Financial Statements

Cash Flow Statement Financial Statements for Sunraysia Institute Note 1 Summary of significant for the year ended 31 December 2015 of TAFE for the year ended 31 December 2015 accounting policies Consolidated Institute The annual financial statements represent the audited general 2015 2014 2015 2014 Notes to the Financial Statements purpose financial statements for Sunraysia Institute of TAFE and Cash flows from operating activities Note $’000 $’000 $’000 $’000 Note Accompanying Note Pg controlled entity (‘Consolidated Group’-or-‘Group’), and the separate Receipts financial statements and notes of Sunraysia Institute of TAFE as an Government contributions - operating 20,669 21,826 20,122 21,286 1 Summary of significant accounting policies 39 individual parent entity (‘Parent-Entity’-or-‘Institute’). Government contributions - capital 5,420 288 5,420 - 2 Income from transactions 51 User fees and charges received 7,889 7,397 7,287 6,768 3 Expenses from transactions 52 The accounting policies set out below have been applied in preparing the financial statements for the year ended 31 December 2015 Goods and services tax recovered from the ATO 114 150 107 149 4 Other economic flows included in net result 53 and the comparative information presented for the year ended Interest received 111 90 108 88 5 Receivables 53 6 Investments and other financial assets 54 31 December 2014. Other receipts 1,134 1,058 875 1,023 7 Inventories 54 Total receipts 35,337 30,809 33,919 29,314 8 Property, plant and equipment 54 The following is a summary of the material accounting policies 9 Intangible assets 59 adopted by the Institute in the preparation of the financial report. Payments 10 Other non-financial assets 60 The accounting policies have been consistently applied unless Payments to suppliers and employees (29,348) (29,260) (27,973) (28,092) 11 Payables 60 otherwise stated. Goods and services tax paid to the ATO (407) (897) (434) (872) 12 Provisions 61 Total payments (29,755) (30,157) (28,407) (28,964) 13 Reserves 62 1.01 Statement of compliance Net cash flows from/(used in) operating activities 14(c) 5,582 652 5,512 350 14 Cash flow information 63 These general purpose financial statements have been prepared 15 Commitments for expenditure 64 in accordance with the Financial Management Act 1994 (FMA) and Cash flows from investing activities 16 Contingent assets and contingent liabilities 64 applicable Australian Accounting Standards (AAS) which include Proceeds from sale of investments 132 167 132 167 17 Superannuation 65 Interpretations, issued by the Australian Accounting Standards Purchases of non-financial assets (3,094) (2,182) (2,764) (2,155) 18 Trust account balances 65 Board (AASB). In particular, they are presented in a manner Net cash provided by/(used in) investing activities (2,962) (2,015) (2,632) (1,988) 19 Financial instruments 66 consistent with the requirements of the AASB 1049 Whole of 20 Key management personnel disclosures 74 Government and General Government Sector Financial Reporting.

Net increase/(decrease) in cash and cash equivalents 2,620 (1,363) 2,880 (1,638) 21 Responsible persons and executive officers 75 For the purposes of preparing financial statements, the Institute Cash and cash equivalents at the beginning of the financial year 2,608 3,971 2,084 3,722 22 Controlled entities 75 23 Remuneration of auditors 76 is classed as a not-for-profit entity. Where appropriate, those AAS Cash and cash equivalents at the end of the financial year 14(a) 5,228 2,608 4,964 2,084 24 Subsequent events 76 paragraphs applicable to not-for-profit entities have been applied. The above cash flow statement should be read in conjunction with the notes to the financial statements. 25 Economic dependency 76 26 Institute details 76 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 accounting preparation and measurement The financial statements were authorised for issue by the Board members on the 23rd of February 2016.

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, and have been prepared in accordance with the historical cost convention.

38 Sunraysia Institute of Technical and Further Education> 39 Financial Statements

Historical cost is based on the fair values of the consideration • The estimates and associated assumptions are reviewed on an For the purpose of fair value disclosures, the Institute has If a member of the group uses accounting policies other than given in exchange for assets. Exceptions to the historical cost ongoing basis. Revisions to accounting estimates are recognised determined classes of assets and liabilities on the basis of the those adopted in the consolidated financial statements for like convention include: in the period in which the estimate is revised and also in future nature, characteristics and risks of the asset or liability and the transactions and events in similar circumstances, appropriate • non-financial physical assets which, subsequent to acquisition, periods that are affected by the revision. Judgements made by level of the fair value hierarchy as explained above. adjustments are made to that group member’s financial statements are measured at a revalued amount being their fair value management in the application of AASs that have significant in preparing the consolidated financial statements to ensure at the date of the revaluation less any subsequent accumulated effects on the financial statements and estimates relate to: In addition, the Institute determines whether transfers have conformity with the group’s accounting policies. depreciation and subsequent impairment losses. Revaluations • the fair value of land, buildings, infrastructure, plant and occurred between levels in the hierarchy by re assessing are made with sufficient regularity to ensure that the carrying equipment; categorisation (based on the lowest level input that is significant Entities consolidated into the Institute’s reporting entity include: amounts do not materially differ from their fair value; • superannuation expense; and to the fair value measurement as a whole) at the end of each TAFE Kids Inc. • the fair value of an asset other than land is generally based on • actuarial assumptions for employee benefit provisions based on reporting period. its depreciated replacement value; likely tenure of existing staff, patterns of leave claims, future Consistent with the requirements of AASB 1004 Contributions, salary movements and future discount rates. 1.03 Reporting entity contributions by owners (that is, contributed capital and its Financial Viability The financial statements cover the Sunraysia Institute of TAFE repayment) are treated as equity transactions and, therefore, As at 31 December 2015, Sunraysia Institute of TAFE (the Fair value measurement as an individual reporting entity. The Institute is a statutory body do not form part of the income and expenses of the Institute. “Institute”) had equity, represented by Accumulated Surplus of Consistent with AASB 13 Fair Value Measurement, the Institute corporate, established pursuant to an act made by the Victorian $10,646,000 (2014: $4,421,000), Physical asset revaluation surplus determines the policies and procedures for both recurring fair value Government under the Education and Training Reform Act 2006. 1.05 Events after reporting date of $21,969,000 (2014: $21,969,000) and contributed capital of measurements such as property, plant and equipment, biological Its principal address is: Assets, liabilities, income or expenses arise from past transactions $6,997,000, (2014: $6,997,000). Additionally the Institute had a assets, investment properties and financial instruments and for Sunraysia Institute of TAFE or other past events. Where the transactions result from an working capital of 1.5, (2014: 0.67). non-recurring fair value measurements such as non-financial 453 Benetook Avenue agreement between the Institute and other parties, the transactions physical assets held for sale, in accordance with the requirements Mildura. Victoria 3500 are only recognised when the agreement is irrevocable at or before Sunraysia Institute of TAFE recorded a profit for the 2015 financial of AASB 13 and the relevant Financial Reporting Directions. balance date. Adjustments are made to amounts recognised in the year of $6,225,000 compared to a loss of $10,910,000 in 2014. The financial statements include all the controlled activities financial statements for events which occur after the reporting date Cash Net Flows from Operating Activities were positive in both years. All assets and liabilities for which fair value is measured or disclosed of the entity. and before the date the statements are authorised for issue, where There was an overall cash increase in cash in 2015 of $2,880,000 in the financial statements are categorised within the fair value those events provide information about conditions which existed at compared to a decrease in cash movement in 2014 of $1,638,000. hierarchy, described as follows, based on the lowest level input that 1.04 Basis of consolidation the reporting date. Note disclosure is made about events between Based on the projected cash flow position of the Institute as at the is significant to the fair value measurement as a whole: In accordance with AASB 10 Consolidated Financial Statements, the reporting date and the date the statements are authorised for 29/02/2016, it is anticipated that after taking into consideration • Level 1 — Quoted (unadjusted) market prices in active markets the consolidated financial statements of the Institute combine like issue where the events relate to conditions which arose after the the Department of Education line of credit of $5,000,000 which the for identical assets or liabilities items of assets, liabilities, equity, income, expenses and cash flows reporting date and are considered to be of material interest. Institute has drawn down on $2,500,000 with a further $2,500,000 • Level 2 — Valuation techniques for which the lowest level input of the Institute with those of the reporting entities controlled by the being available for draw down and anticipated funding for the that is significant to the fair value measurement is directly or Institute. Uniform accounting policies for like transactions and other 1.06 Goods and Services Tax (GST) 2015/16 Community Services Expectations grant to be received indirectly observable; and events in similar circumstances are applied in the preparation of Income, expenses and assets are recognised net of the amount of in the first half of 2016, the Institute will have a positive cash flow • Level 3 — Valuation techniques for which the lowest level input consolidated financial statements. associated GST, unless the GST incurred is not recoverable from the until March 2017. that is significant to the fair value measurement is unobservable. taxation authority. In this case it is recognised as part of the cost of A controlled entity is an entity over which the Institute has exposure acquisition of the asset or as part of the expense. Because of the above conditions, there is material uncertainty on The Institute’s assets are subject to a revaluation model, as directed or rights to variable returns from its involvement with the entity, and the Institute’s ability to continue as a going concern and, therefore, by the State’s Financial Reporting Directions. The Institute records the ability to affect those returns though the use of its power over Receivables and payables are stated inclusive of the amount of GST the Institute may be unable to realise its assets and discharge its non-current tangible assets at fair value (depreciated replacement the entity. receivable or payable. The net amount of GST recoverable from, or liabilities in the normal course of business. Accordingly, to address cost), with revaluations completed every five years as required by payable to, the taxation authority is included with other receivables this, the Department of Education and Training will provide a FRD 103E Property, Plant and Equipment. The most recent valuation The existence of power over an entity is established when the or payables in the balance sheet. further Community Service Expectations grant for 2016/17 which was completed at 31 December 2015 for plant and equipment, Institute has existing rights that give it the current ability to direct is expected to be paid in the 2016 calendar year. At this point in 31 December 2013 for land and 31 December 2012 for buildings. the activities of the controlled entity which would significantly affect Cash flows are included in the cash flow statement on a gross time the exact amount of this grant is unknown. the returns of the controlled entity. basis. The GST component of cash flows arising from investing From the valuation performed at 31 December 2015 on plant and and financing activities which is recoverable from, or payable to, Critical accounting judgement and equipment, it was determined that depreciated replacement cost Where control of an entity is obtained during the financial period, its the taxation authority are presented as operating cash flow. key sources of estimation uncertainty materially reflected fair value, hence no adjustment was required. results are included in the comprehensive operating statement from Judgements, estimates and assumptions are required to be made During the interim years, an annual fair value assessment is the date on which control commenced. Where control ceases during Commitments and contingent assets or liabilities are presented about the carrying values of assets and liabilities that are not undertaken by applying the VGV indices to ensure that the carrying a financial period, the entity’s results are included for that part of the on a gross basis. readily apparent from other sources. The estimates and associated value of the assets is not materially different from the fair value period in which control existed. assumptions are based on professional judgements derived from as at balance sheet date. The Institute uses indicies provided by 1.07 Income from transactions historical experience and various other factors that are believed to the VGV to complete these assessments. All intragroup assets, liabilities, equity, income, expenses and cash Income is recognised to the extent that it is probable that the be reasonable under the circumstances. Actual results may differ flows relating to transactions between entities of the group are economic benefits will flow to the entity and the income can be from these estimates. The Valuer General Victoria (VGV) is the Corporation’s independent eliminated in full on consolidation. reliably measured at fair value. Amounts disclosed as income are, valuation agency. where applicable, net of returns, allowances and duties and taxes. 40 Sunraysia Institute of Technical and Further Education> 41 Financial Statements

Revenue is recognised for each of the Institute’s major activities Employee benefits Depreciation methods and rates used for each class of depreciable assets are: as follows: Expenses for employee benefits are recognised when incurred, Class of asset Method 2015 2014 Government contributions except for contributions in respect of defined benefit plans. Government contributions are recognised as revenue in the Buildings Diminishing Value / Straight Line 2.5% 2.5% period when the Institute gains control of the contributions. Retirement benefit obligations Plant & equipment Diminishing Value / Straight Line 10.0% - 25.0% 10.0% - 25.0% Control is recognised upon receipt or notification by relevant (i) Defined contribution plan 20% 20% Motor vehicles Diminishing Value / Straight Line authorities of the right to receive a contribution for the Contributions to defined contribution plans are expensed 33.33% - 50% 33.33% - 50% current period. when they become payable. Library collections Diminishing Value / Straight Line 10.0% 10.0% (ii) Defined benefit plans Sale of goods and services The amount charged to the statement of comprehensive income Amortisation amortisation method for an intangible asset with a finite useful life (i) Student fees and charges in respect of superannuation represents the contributions made Intangible assets with finite lives are amortised on a straight are reviewed at least at the end of each annual reporting period. Student fees and charges revenue is recognised by reference by the Institute to the superannuation plan in respect of current line basis over the assets useful lives. Amortisation begins when In addition, an assessment is made at each reporting date to to the percentage of services provided. Where student fees and services of current Institute staff. Superannuation contributions the asset is available for use, that is, when it is in the location determine whether there are indicators that the intangible asset charges revenue has been clearly received in respect of courses are made to the plans based on the relevant rules of each plan. and condition necessary for it to be capable of operating in the concerned is impaired. If so, the assets concerned are tested as to or programs to be delivered in the following year, any non- manner intended by management. The amortisation period and the whether their carrying value exceeds their recoverable amount. refundable portion of the fees is treated as revenue in the year The Institute does not recognise any deferred liability in respect of the of receipt and the balance as Revenue in Advance. plan(s) because the Institute has no legal or constructive obligation Class of asset Method 2015 2014 to pay future benefits relating to its employees; its only obligation is Software Diminishing Value / Straight Line 10% - 33% 10% - 33% (ii) Fee for Service to pay superannuation contributions as and when they fall due. Fee for service revenue is recognised by reference to the The Department of Treasury and Finance recognises and discloses Intangible assets with indefinite lives are not amortised. The useful 1.09 Other economic flows included in net result percentage completion of each contract, i.e. in the reporting the State’s defined benefit liabilities in its finance report. life of intangible assets that are not being amortised are reviewed Other economic flows measure the change in volume or value period in which the services are rendered. Where fee for service each period to determine whether events and circumstances of assets or liabilities that do not result from transactions. revenue of a reciprocal nature has been clearly received in Depreciation and amortisation continue to support an indefinite useful life assessment for that respect of programs or services to be delivered in the following Depreciation asset. In addition, the Institute tests all intangible assets with Net gain/(loss) on non-financial assets year, such amounts are disclosed as Revenue in Advance. Depreciation is provided on property, plant and equipment, including indefinite lives for impairment by comparing its recoverable amount Net gain/(loss) on non-financial assets and liabilities includes freehold buildings but excluding land. Depreciation is generally with its carrying amount: realised and unrealised gains and losses from revaluations, (iii) Revenue from sale of goods calculated on a straight-line basis and reducing balance, at (a) annually; impairments, and disposals of all physical assets and intangible Revenue from sale of goods is recognised by the Institute when: rates that allocate the asset’s value, less any estimated residual (b) whenever there is an indication that the intangible asset assets. (a) the significant risks and rewards of ownership of the goods value, over its estimated useful life. Leasehold improvements may be impaired. have transferred to the buyer; are depreciated over the period of the lease or estimated useful Any excess of the carrying amount over the recoverable amount is Disposal of non-financial assets (b) the Institute retains neither continuing managerial life, whichever is the shorter, using the straight-line method. The recognised as an impairment loss. Any gain or loss on disposal of non-financial assets is recognised involvement to the degree usually associated with estimated useful lives, residual values and depreciation method at the date control of the asset is passed to the buyer and is ownership nor effective control over the goods sold; are reviewed at the end of each annual reporting period, and Interest Expense determined after deducting from the proceeds the carrying value (c) the amount of revenue can be reliably measured; adjustments made where appropriate. Interest expense is recognised in the period in which it is incurred. of the asset at the time. (d) it is probable that the economic benefits associated Interest expense includes interest on advances, loans, overdrafts, with the transaction will flow to the Institute; and bonds and bills, deposit, interest components of finance lease Impairment of non-financial assets (e) the costs incurred or to be incurred in respect of the repayments, and amortisation of discounts or premiums in relation Goodwill and intangible assets with indefinite useful lives (and transaction can be measured reliably. to borrowings. intangible assets not yet available for use) are tested annually for

impairment (i.e. as to whether their carrying value exceeds their Interest Grants and other transfers recoverable amount and so require write downs). Interest income includes interest received on bank term deposits Grants and other transfers to third parties are recognised as an and other investments and the unwinding over time of the discount expense in the reporting period in which they are paid or payable. All other assets are assessed annually for indications of impairment, on financial assets. Interest income is recognised using the effective except for: interest method which allocates the interest over the relevant Fair value of assets and services provided free • Inventories; period. of charge or for nominal consideration • Financial assets; Resources provided free of charge or for nominal consideration are If there is an indication of impairment, the assets concerned are 1.08 Expenses from transactions recognised at their fair value when the Institute obtains control over tested as to whether their carrying value exceeds their possible Expenses from transactions are recognised as they are incurred, them, irrespective of whether these contributions are subject to recoverable amount. Where an asset’s carrying value exceeds its and reported in the financial year to which they relate. restrictions or conditions over their use. Contributions in the form recoverable amount, the difference is written off by a charge to the

of services are only recognised when a fair value can be reliably statement of comprehensive income, except to the extent that the determined and the services would have been purchased if not write down can be debited to an asset revaluation reserve amount received as a donation. applicable to that class of asset.

42 Sunraysia Institute of Technical and Further Education> 43 Financial Statements

If there is an indication that there has been a change in the estimate The amount of the allowance is the difference between the financial For cash flow statement presentation purposes, cash and cash (b) has neither transferred nor retained substantially all of an asset’s recoverable amount since the last impairment loss asset’s carrying amount and the present value of estimated future equivalents includes bank overdrafts, which are included as the risks and rewards of the asset, but has transferred was recognised, the carrying amount shall be increased to its cash flows, discounted at the effective interest rate. borrowings on the balance sheet. control of the asset. recoverable amount. This reversal of the impairment loss occurs only to the extent that the asset’s carrying amount does not In assessing impairment of statutory (non-contractual) financial Receivables Where the Institute has neither transferred nor retained exceed the carrying amount that would have been determined, net assets, which are not financial instruments, professional judgement Receivables consist of: substantially all the risks and rewards or transferred control, the of depreciation or amortisation, if no impairment loss had been is applied in assessing materiality using estimates, averages • statutory receivables, which include predominantly amounts asset is recognised to the extent of the Institute’s continuing recognised in prior years. and other computational methods in accordance with AASB 136 owing from the Victorian Government and GST input tax credits involvement in the asset. Impairment of Assets. recoverable; and It is deemed that, in the event of the loss or destruction of an asset, • contractual receivables, which include debtors in relation 1.12 Leases the future economic benefits arising from the use of the asset Other gains/(losses) from other economic flows to goods and services, loans to third parties, accrued A lease is a right to use an asset for an agreed period of time will be replaced unless a specific decision to the contrary has Other gains/(losses) from other economic flows include the gains investment income, and finance lease receivables in exchange for payment. been made. or losses from reclassifications of amounts from reserves and/or accumulated surplus to net result, and from the revaluation of the Receivables that are contractual are classified as financial Leases are classified at their inception as either operating or The recoverable amount for most assets is measured at the higher present value of the long service leave liability due to changes in the instruments. Statutory receivables are not classified as financial finance leases based on the economic substance of the agreement of depreciated replacement cost and fair value less costs to sell. bond interest rates. instruments. so as to reflect the risks and rewards incidental to ownership. Recoverable amount for assets held primarily to generate net cash Leases of property, plant and equipment are classified as finance flows is measured at the higher of the present value of future cash This classification is consistent with the whole government reporting Receivables are recognised initially at fair value and subsequently infrastructure leases whenever the terms of the lease transfer flows expected to be obtained from the asset and fair value less format and is allowed under AASB 101 Presentation of Financial measured at amortised cost, using the effective interest method, substantially all the risks and rewards of ownership from the lessor costs to sell. It is deemed that, in the event of the loss of an asset, Statements. less an allowance for impairment. to the lessee. All other leases are classified as operating leases. the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has 1.10 Financial instruments A provision for doubtful receivables is made when there is objective Operating leases been made. Financial instruments arise out of contractual agreements that give evidence that the debts may not be collected and bad debts are Institute as lessee rise to a financial asset of one entity and a financial liability or equity written off when identified. Operating lease payments, including any contingent rentals, Net gain/(loss) on financial instruments instrument of another entity. are recognised as an expense in the comprehensive operating Net gain/(loss) on financial instruments includes realised Investments and other financial assets statement on a straight-line basis over the lease term, except where and unrealised gains and losses from revaluations of financial Categories of non‑derivative financial instruments Investments are classified in the following categories: another systematic basis is more representative of the time pattern instruments that are designated at fair value through profit or Loans and receivables • loans and receivables; of the benefits derived from the use of the leased asset. The leased loss or held-for-trading, impairment and reversal of impairment Loans and receivables are financial instrument assets with fixed asset is not recognised in the balance sheet. for financial instruments at amortised cost, and disposals of and determinable payments that are not quoted on an active The classification depends on the purpose for which the investments financial assets. market. These assets are initially recognised at fair value plus were acquired. Management determines the classification of its 1.13 Non-Financial Assets any directly attributable transaction costs. Subsequent to initial investments at initial recognition. Inventories Revaluations of financial instruments at fair value measurement, loans and receivables are measured at amortised Inventories include goods and other property held either for sale or The revaluation gain/(loss) on financial instruments at fair value cost using the effective interest method, less any impairment. Any dividend or interest earned on the financial asset is recognised for distribution at a zero or nominal cost, or for consumption in the excludes dividends or interest earned on financial assets, which is in the consolidated comprehensive operating statement as a ordinary course of business operations. It includes land held-for- reported as part of income from transactions. Loans and receivables category includes cash and deposits transaction. sale and excludes depreciable assets. (refer to Note 1.11), term deposits with maturity greater than three Impairment of financial assets months, trade receivables, loans and other receivables, but not Derecognition of financial assets Inventories held-for-distribution are measured at cost, adjusted for At the end of each reporting period, the Institute assesses whether statutory receivables. A financial asset (or, where applicable, a part of a financial asset or any loss of service potential. All other inventories, including land held there is objective evidence that a financial asset or group of financial part of a group of similar financial assets) is derecognised when: for sale, are measured at the lower of cost and net realisable value. assets is impaired. Objective evidence includes financial difficulties • the rights to receive cash flows from the asset have expired; or where Inventories are acquired for no cost or nominal consideration, of the debtor, default payments, debts which are more than 60 1.11 Financial assets • the Institute retains the right to receive cash flows from the they are measured at current replacement cost at the date of days overdue, and changes in debtor credit ratings. All financial Cash and deposits asset, but has assumed an obligation to pay them in full without acquisition. instrument assets, except those measured at fair value through Cash and deposits, including cash equivalents, comprise cash on material delay to a third party under a ‘pass through’ profit or loss, are subject to annual review for impairment. hand and cash at bank, deposits at call and those highly liquid arrangement; or The basis used in assessing loss of service potential for inventories investments with an original maturity of three months or less, • the Institute has transferred its rights to receive cash flows held-for-distribution include current replacement cost and technical Bad and doubtful debts for financial assets are assessed on a which are held for the purpose of meeting short term cash from the asset and either: or functional obsolescence. Technical obsolescence occurs when regular basis. Those bad debts considered as written off by mutual commitments rather than for investment purposes, and which (a) has transferred substantially all the risks and rewards an item still functions for some or all of the tasks it was originally consent are classified as a transaction expense. Bad debts not are readily convertible to known amounts of cash and are subject of the asset, or acquired to do, but no longer matches existing technologies. written off by mutual consent and the allowance for doubtful to an insignificant risk of changes in value. Functional obsolescence occurs when an item no longer functions receivables are classified as ‘other economic flows’ in the net result. the way it did when it was first acquired.

44 Sunraysia Institute of Technical and Further Education> 45 Financial Statements

Property, plant and equipment a revaluation decrease in respect of that class of property, plant and Intangible assets are measured at cost less accumulated as ‘current liabilities’, because the Institute does not have an All non-financial physical assets, are measured initially at cost and equipment, previously recognised as an expense (other economic amortisation and impairment, and are amortised on a straight-line unconditional right to defer settlements of these liabilities. subsequently revalued at fair value less accumulated depreciation flows) in the net result, the increase is recognised as income basis over their useful lives as follows: and impairment. Where an asset is received for no or nominal (other economic flows) in determining the net result. Depending on the expectation of the timing of settlement, liabilities consideration, the cost is the asset’s fair value at the date of 2015 2014 for wages and salaries, annual leave are measured at: acquisition. Revaluation decreases are recognised immediately as expenses Capitalised software development cost (years) 3 - 10 3 - 10 • undiscounted value - if the Institute expects to wholly settle (other economic flows) in the net result, except to the extent that within 12 months; or The fair value of cultural assets and collections, heritage assets a credit balance exists in the revaluation reserve in respect of the Prepayments • present vale - if the Institute does not expect to wholly settle and other non-financial physical assets that the State intends to same class of property, plant and equipment, they are debited to Prepayments represent payments in advance of receipt of goods within 12 months. preserve because of their unique historical, cultural or environmental the revaluation reserve. and services or that part of expenditure made in one accounting attributes, is measured at the replacement cost of the asset less, period covering a term extending beyond that period. (ii) Long service leave where applicable, accumulated depreciation (calculated on the Revaluation increases and revaluation decreases relating to Liability for long service leave (LSL) is recognised in the provision basis of such cost to reflect the already consumed or expired future individual assets within a class of property, plant and equipment 1.14 Liabilities for employee benefits. economic benefits of the asset) and any accumulated impairment. are offset against one another within that class but are not offset Payables These policies and any legislative limitations and restrictions in respect of assets in different classes. Payables consist of: Unconditional LSL is disclosed in the notes to the financial imposed on their use and/or disposal may impact their fair value. • contractual payables, such as accounts payable, and unearned statements as a current liability, even where the Institute does not Intangible assets income including deferred income from concession expect to settle the liability within 12 months because it will not have The fair value of infrastructure systems and plant, equipment Intangible assets are initially recognised at cost. Subsequently, arrangements. Accounts payable represent liabilities for goods the unconditional right to defer the settlement of the entitlement and vehicles, is normally determined by reference to the asset’s intangible assets with finite useful lives are carried at cost and services provided to the Institute prior to the end of the should an employee take leave within 12 months. depreciated replacement cost, or where the infrastructure is held less accumulated depreciation/amortisation and accumulated financial year that are unpaid, and arise when the Institute by a for-profit entity, the fair value may be derived from estimates impairment losses. Costs incurred subsequent to initial acquisition becomes obliged to make future payments in respect of the The components of the current LSL liability are measured at: of the present value of future cash flows. For plant, equipment are capitalised when it is expected that additional future economic purchase of those goods and services; and • nominal value (undiscounted value) - component that is and vehicles, existing depreciated historical cost is generally a benefits will flow to the Institute. • statutory payables, such as goods and services tax and fringe expected to be wholly settled within 12 months; and reasonable proxy for depreciated replacement cost because of benefits tax payables. • present value (discounted value) - component that is not the short lives of the assets concerned. When recognition criteria AASB 138 Intangible Assets are met, expected to be wholly settled within 12 months. internally generated intangible assets are recognised and Contractual payables are classified as financial instruments and The cost of constructed non-financial physical assets includes measured at cost less accumulated depreciation/amortisation categorised as financial liabilities at amortised cost. Statutory Conditional LSL is disclosed as non-current liability. There is an the cost of all materials used in construction, direct labour on and impairment. payables are recognised and measured similarly to contractual unconditional right to defer the settlement of the entitlement the project, and an appropriate proportion of variable and fixed payables, but are not classified as financial instruments and not until the employee has completed the requisite years of service. overheads. Expenditure on research activities is recognised as an expense included in the category of financial liabilities at amortised cost, This non-current LSL liability is measured at present value. in the period in which It is incurred. because they do not arise from a contract. For the accounting policy on impairment of non-financial physical Any gain or loss following revaluation of the present value of assets, refer to Note 1.09 on Impairment of non-financial assets. An internally-generated intangible asset arising from development Provisions non-current LSL liability is recognised as a transaction, except to (or from the development phase of an internal project) is recognised Provisions are recognised when the Institute has a present the extent that a gain or loss arises due to changes in bond interest Library collections if, and only if, all of the following are demonstrated: obligation, the future sacrifice of economic benefits is probable, for which it is then recognised as an other economic flow. Library collections are recognised initially at cost and subsequently (a) the technical feasibility of completing the intangible and the amount of the provision can be measured reliably. measured at fair value less accumulated depreciation and asset so that it will be available for use or sale; (iii) Termination benefits impairment in accordance with FRD103F. (b) the intention to complete the intangible asset and use The amount recognised as a provision is the best estimate of the Termination benefits are payable when employment is terminated or sell it; consideration required to settle the present obligation at reporting before the normal retirement date, or when an employee decides Revaluations of non-financial physical assets (c) the ability to use or sell the asset; date, taking into account the risks and uncertainties surrounding to accept an offer of benefits in exchange for termination of Non-current physical assets measured at fair value are revalued in (d) the intangible asset will generate probable future the obligation. Where a provision is measured using the cash flows employment. The Institute recognises termination benefits when it accordance with Financial Reporting Directions (FRDs) issued by economic benefits; estimated to settle the present obligation, its carrying amount is the is demonstrably committed to either terminating the employment the Minister for Finance. A full revaluation normally occurs every five (e) the availability of adequate technical, financial and present value of those cash flows. of current employees according to a detailed formal plan without years, based upon the asset’s government purpose classification, other resources to complete the development and to use possibility of withdrawal or providing termination benefits as a result but may occur more frequently if fair value assessments indicate or sell the intangible asset; and Employee benefits of an offer made to encourage voluntary redundancy. Benefits falling material changes in values. Independent valuers are generally used (f) the ability to measure reliably the expenditure Provision is made for benefits accruing to employees in respect of due more than 12 months after balance sheet date are discounted to conduct these scheduled revaluations. Revaluation increases or attributable to the intangible asset during its development. wages and salaries, annual leave and long service leave for services to present value. decreases arise from differences between an asset’s carrying value rendered to the reporting date. and fair value. Where no internally-generated intangible asset can be recognised, Employee benefits on-costs development expenditure is recognised as an expense in the period (i) Wages and salaries, and annual leave Provision for on-costs such as payroll tax, workers compensation Revaluation increases are credited directly to equity in the as incurred. Liabilities for wages and salaries, including non-monetary benefits and superannuation are recognised separately from the provision revaluation reserve, except to the extent that an increase reverses annual leave, is recognised in the provision for employee benefits of employee benefits.

46 Sunraysia Institute of Technical and Further Education> 47 Financial Statements

Performance Payments Accounting policies will be considered material if their omission or Applicable for annual Performance payments for the Institute’s Executive Officers are misstatement could, either individually or collectively, influence the Standard reporting periods Impact on public sector entity financial based on a percentage of the annual salary package provided economic decisions that users make on the basis of the financial /Interpretation Summary beginning on statements under the contract of employment. A liability is provided for under statements. Materiality depends on the size and nature of the AASB 9 Financial The key changes include the simplified 1-Jan-18 The assessment has identified that the financial the term of the contracts at reporting date and paid out in the next omission or misstatement judged in the surrounding circumstances. Instruments requirements for the classification and impact of available for sale (AFS) assets will measurement of financial assets, a new now be reported through other comprehensive financial year. hedging accounting model and a revised income (OCI) and no longer recycled to the 1.19 Rounding of amounts impairment loss model to recognise profit and loss. Financial liabilities Amounts in the financial report have been rounded to the nearest impairment losses earlier, as opposed to the Non-derivative financial liabilities (excluding financial guarantees) thousand dollars, unless otherwise stated. current approach that recognises impairment While the preliminary assessment has not are subsequently measured at amortised cost using the effective only when incurred. identified any material impact arising from AASB 9, it will continue to be monitored and assessed. interest rate method. 1.20 Comparative information AASB 14 Regulatory AASB 14 permits first-time adopters of 1-Jan-16 The assessment has indicated that there is When required by Accounting Standards, comparative figures have Deferral Accounts Australian Accounting Standards who conduct no expected impact , as those that conduct Derecognition of financial liabilities been adjusted to conform to changes in presentation for the current rate-regulated activities to continue to account rate-regulated activities have already adopted A financial liability is derecognised when the obligation under financial year. for amounts related to rate regulation in Australian Accounting Standards. the liability is discharged, cancelled or expires. accordance with their previous GAAP. 1.21 Change in accounting policy AASB 15 Revenue The core principle of AASB 15 requires an entity 1-Jan-17 The changes in revenue recognition 1.15 Commitments Subsequent to the 2014 reporting period, the following new and from Contracts with to recognise revenue when the entity satisfies requirements in AASB 15 may result in changes Customers a performance obligation by transferring a to the timing and amount of revenue recorded revised accounting standards have been adopted in the current Commitments for future expenditure include operating and capital promised good or service to a customer. in the financial statements. The Standard will commitments arising from contracts. These commitments are period with their financial impact detailed as below. also require additional disclosures on service disclosed by way of note at their nominal value and inclusive of the • AASB 2015-7 Amendments to Australian Accounting Standards revenue and contract modifications. GST payable. In addition, where it is considered appropriate and - Fair Value provides additional relevant information to users, the net present (Exposure Draft 263 A potential impact will be the upfront – potential deferral recognition of revenue from licenses that cover values of significant individual projects are stated. These future AASB 2015-7 Amendments to Australian to 1 Jan 2018) multiple reporting periods. Revenue that was Accounting Standards - Fair Value expenditures cease to be disclose as commitments once the related deferred and amortised over a period may liabilities are recognised on the balance sheet. Disclosure of Not-for-Profit Public Sector Entities: now need to be recognised immediately as a The Minister for Finance has approved the early adoption of AASB transitional adjustment against the opening returned earnings if there are no former 1.16 Contingent assets and contingent liabilities 2015-7. This enables Victorian not-for-profit public sector entities performance obligations outstanding. Contingent assets and contingent liabilities are not recognised in to benefit from some limited scope exemptions in relation to the fair AASB 1056 AASB 1056 replaces AAS 25 Financial Reporting 1-Jul-16 The assessment has indicated that there will value disclosure for the 2014-15 reporting period. The Institute has the balance sheet, but are disclosed by way of a note (refer to Note Superannuation by Superannuation Plans. The standard was be no impact on the entity, as the Accounting 16) and, if quantifiable, are measured at nominal value. Contingent chosen to apply this early adoption. For fair value measurements Entities developed in light of changes in recent years, Standard only affects superannuation entities assets and liabilities are presented inclusive of the GST receivable that have been categorised within Level 3 of the fair value hierarchy, developments in the superannuation industry own reporting. or payable respectively. the Institute is no longer required to provide quantitative information and Australia’s adoption of IFRS. about the ‘significant unobservable inputs’ used in determining the Some of the key changes in AASB 1056 include: fair value measurement. 1.17 Equity · the level of integration between AASB 1056 Contributed capital and other AASB standards Funding that are in the nature of contributions by the Victorian State 1.22 New and revised AASBs in issue but not yet effective · a revised definition of a superannuation entity government are treated as contributed capital when designated in Certain new accounting standards and interpretations have been · revised and consistent content for the financial statements accordance with UIG Interpretation 1038 Contribution by Owners published that are not mandatory for the 31 December 2015 reporting period. · use of fair value rather than net market value Made to Wholly-Owned Public Sector Entities. Commonwealth capital for measuring assets and liabilities

funds are not affected and are treated as income. · revised member liability recognition and As at 31 December 2015 the following standards and interpretations measurement requirements Transfers of net assets arising from administrative restructurings (applicable to the Institute) had been issued but were not mandatory · revised disclosure principles are treated as distributions to or contributions by owners. for financial year ending 31 December 2015. The Institute has not, AASB 2014‑1 Amends various AASs to reflect the AASB’s 1-Jan-18 This amending standard will defer the Amendments decision to defer the mandatory application application period of AASB 9 to the and does not intend to, adopt these standards early. to Australian date of AASB 9 to annual reporting periods 2018-19 reporting period in accordance

1.18 Materiality Accounting beginning on or after 1 January 2018 as a with the transition requirements. In accordance with Accounting Standard AASB 108 Accounting Standards consequence of Chapter 6 Hedge Accounting, Policies, Changes in Accounting Estimates and Error, when an [Part E Financial and to amend reduced disclosure requirements. Australian Accounting Standard specifically applies to a transaction, Instruments] other event or condition, the accounting policies applied to that item shall be determined by applying the Standard, unless the effect of applying them is immaterial.

48 Sunraysia Institute of Technical and Further Education> 49 Financial Statements

Standard Summary Applicable for annual Impact on public sector entity financial • AASB 2014 3 Amendments to Australian Accounting Standards • AASB 2015 2 Amendments to Australian Accounting Standards /Interpretation reporting periods statements – Accounting for Acquisitions of Interests in Joint Operations – Disclosure Initiative: Amendments to AASB 101 [AASB 7, AASB beginning on [AASB 1 & AASB 11] 101, AASB 134 & AASB 1049] AASB 2014 5 Amendments to Australian Accounting Standards AASB 2015 3 Amendments to Australian Accounting Standards AASB 2014‑4 Amends AASB 116 Property, Plant and 1-Jan-16 The assessment has indicated that there is no • • arising from AASB 15 arising from the Withdrawal of AASB 1031 Materiality Amendments Equipment and AASB 138 Intangible Assets to: expected impact as the revenue-based method AASB 2014 6 Amendments to Australian Accounting Standards AASB 2015 4 Amendments to Australian Accounting Standards to Australian · establish the principle for the basis of is not used for depreciation and amortisation. • • – Agriculture: Bearer Plants [AASB 101, AASB 116, AASB 117, AASB – Financial Reporting Requirements for Australian Groups with Accounting depreciation and amortisation as being the 123, AASB 136, AASB 140 & AASB 141] a Foreign Parent [AASB 127, AASB 128] Standards – expected pattern of consumption of the future AASB 2014 7 Amendments to Australian Accounting Standards AASB 2015 5 Amendments to Australian Accounting Standards Clarification of economic benefits of an asset; • • arising from AASB 9 (December 2014) – Investment Entities: Applying the Consolidation Exception Acceptable Methods · prohibit the use of revenue‑based methods to AASB 2014 8 Amendments to Australian Accounting Standards [AASB 10, AASB 12, AASB 128] of Depreciation and calculate the depreciation or amortisation of an • arising from AASB 9 (December 2014) – Application of AASB 9 Amortisation asset, tangible or intangible, because revenue (December 2009) and AASB 9 (December 2010) [AASB 9 generally reflects the pattern of economic (2009 & 2010)] [AASB 116 & AASB benefits that are generated from operating the 138] business, rather than the consumption through the use of the asset. Note 2 Income from transactions AASB 2014‑9 Amends AASB 127 Separate Financial 1-Jan-16 The assessment indicates that there is no Amendments Statements to allow entities to use the equity expected impact as the entity will continue to Consolidated Institute to Australian method of accounting for investments in account for the investments in subsidiaries, 2015 2014 2015 2014 Accounting subsidiaries, joint ventures and associates in joint ventures and associates using the cost 2 Income from transactions $’000 $’000 $’000 $’000 Standards – their separate financial statements. method as mandated if separate financial (a) Grants and other transfers (other than contributions by owners) Equity Method in statements are presented in accordance (i) Government contributions - operating Separate Financial with FRD 113A. Statements State government - contestable 11,480 11,125 11,480 11,125 Other contributions by State Government 10,398 3,635 10,398 3,635 [AASB 1, 127 & 128] Total government contributions -operating 21,878 14,760 21,878 14,760 AASB 2014‑10 AASB 2014-10 amends AASB 10 Consolidated 1-Jan-16 The assessment has indicated that there is Amendments Financial Statements and AASB 128 limited impact, as the revisions to AASB 10 (ii) Government contributions - capital to Australian Investments in Associates to ensure consistent and AASB 128 are guidance in nature. Accounting treatment in dealing with the sale or State capital 5,420 288 5,420 - Standards – Sale contribution of assets between an investor and Total government contributions - capital 5,420 288 5,420 - or Contribution of its associate or joint venture. The amendments Total government contributions 27,298 15,048 27,298 14,760 Assets between require that: an Investor and its · a full gain or loss to be recognised by the Associate or Joint investor when a transaction involves a business (b) Sales of goods and services Venture [AASB 10 & (whether it is housed in a subsidiary or not);and Student fees and charges 5,281 5,049 5,279 5,049 AASB 128] · a partial gain or loss to be recognised by the Rendering of services parent when a transaction involves assets that Fee for service - Government 383 279 383 279 do not constitute a business, even if these Fee for service - International operations - onshore 823 792 823 792 assets are housed in a subsidiary. AASB 2015‑6 The Amendments extend the scope of AASB 1-Jan-16 The amending standard will result in extended Fee for service - other 1,335 1,356 151 217 Amendments 124 Related Party Disclosures to not-for- disclosures on the entity’s key management Total rendering of services 2,541 2,427 1,357 1,288 to Australian profit public sector entities. A guidance has personnel (KMP), and the related party Accounting been included to assist the application of transactions. Other non-course fees and charges Standards – the Standard by not-for-profit public sector Extending Related entities. Sale of goods 1,613 1,288 1,608 1,288 Party Disclosures to Total other fees and charges 1,613 1,288 1,608 1,288 Not-for-Profit Public Total revenue from sale of goods and services 9,435 8,764 8,244 7,625 Sector Entities

(c) Interest [AASB 10, AASB 124 & AASB 1049] Interest from financial assets not at fair value through P/L: Interest on bank deposits 111 90 108 88 In addition to the new standards above, the AASB has issued a list • AASB 2010-7 Amendments to Australian Accounting Standards Total interest from financial assets not at fair value through P/L 111 90 108 88 of amending standards that are not effective for the 2015 reporting arising from AASB 9 (December 2010). Net interest income 111 90 108 88 period (as listed below). In general, these amending standards • AASB 2013-9 Amendments to Australian Accounting Standards include editorial and references changes that are expected to – Conceptual Framework, Materiality and Financial Instruments have insignificant impacts on public sector reporting. The AASB • AASB 2014 1 Amendments to Australian Accounting Standards (d) Other income Interpretation in the list below is also not effective for the 2015 [PART D – Consequential Amendments arising from AASB 14 Donations, bequests and contributions 4 75 2 74 reporting period and is considered to have insignificant impacts Regulatory Deferral Accounts only] Other revenue 38 46 22 18 on public sector reporting. Total other income 42 121 24 92

50 Sunraysia Institute of Technical and Further Education> 51 Financial Statements

Note 3 Expenses from transactions Note 4 Other economic flows included in net result Consolidated Institute Consolidated Institute 2015 2014 2015 2014 2015 2014 2015 2014 3 Expenses from transactions $’000 $’000 $’000 $’000 4 Other economic flows included in net result $’000 $’000 $’000 $’000 (a) Employee expenses (a) Net gain/(loss) on non-financial assets (including PPE and intangible assets) Salaries, wages, overtime and allowances 15,389 16,390 14,391 15,396 Impairment of property plant and equipment (including intangible assets) - (2,723) - (2,723) Superannuation 1,536 1,490 1,535 1,490 Net gain on disposal of property plant and equipment (37) 8 (37) 8 Payroll tax 722 791 722 791 Total net gain/(loss) on non-financial assets (37) (2,715) (37) (2,715) Worker’s compensation 145 175 145 175 Long service leave 283 197 283 197 (b)Net gain/(loss) on financial instruments Annual leave (37) 20 (33) 17 Loans and receivables (55) (57) (55) (48) Other 68 99 68 99 Total net gain/(loss) on financial instruments (55) (57) (55) (48) Total employee expenses 18,106 19,162 17,111 18,165 (c) Other gains/(losses) from other economic flows Net gain/(loss) arising from revaluation of long service leave liability (122) (193) (110) (186) (b) Depreciation and amortisation Depreciation of non-current assets Total other gains/(losses) from other economic flows (122) (193) (110) (186) Buildings 627 631 613 620 Plant and equipment 508 621 504 618 Note 5 Receivables Motor vehicles 130 151 130 151 Consolidated Institute Library collections 19 22 19 22 2015 2014 2015 2014 5 Receivables $’000 $’000 $’000 $’000 Total depreciation 1,284 1,425 1,266 1,411 Current receivables Contractual Amortisation of non-current physical and intangible assets Sale of goods and services 745 810 741 806 Software 428 798 428 798 Provision for doubtful contractual receivables (See also Note 5(a) below) (15) (55) (14) (55) Total amortisation 428 798 428 798 Amount receivable from: Total depreciation and amortisation 1,712 2,223 1,694 2,209 related parties - Skills Victoria 777 1,779 777 1,779 related parties - TAFE Kids - - 95 106 (c) Grants and other transfers (other than contributions by owners) Total contractual 1,507 2,534 1,599 2,636 Grants and subsidies apprentices and trainees - 23 - 23 Total grants and other transfers - 23 - 23 Statutory GST Input tax credit recoverable 227 80 221 80 (d) Supplies and services Total statutory 227 80 221 80 Purchase of supplies and consumables 977 956 916 895 Total current receivables 1,734 2,614 1,820 2,716 Communication expenses 632 323 632 322 Total receivables 1,734 2,614 1,820 2,716 Contract and other services 4,249 4,479 4,245 4,469 1 The average credit period for sales of goods and services and for other receivables is 30 days. A provision has been made for estimated Cost of goods sold/distributed (ancillary trading) 388 480 388 479 non-recoverable amounts from the sale of goods determined by reference to past default experience Building repairs and maintenance 1,024 997 954 968 Minor equipment 359 444 354 444 2 Ageing analysis of contractual receivables Please refer to Note 19-2 for the ageing analysis of contractual receivables Fees and charges 700 309 697 306 Total supplies and services 8,329 7,988 8,186 7,883 3 Nature and extent of risk arising from contractual receivables Please refer to Note 19-2 for the nature and extent of credit risk arising from contractual receivables. (e) Other operating expenses General expenses Consolidated Institute Marketing and promotional expenses 344 223 344 223 2015 2014 2015 2014 Occupancy expenses 698 684 687 676 (a) Movement in the provision for doubtful contractual receivables $’000 $’000 $’000 $’000 Audit fees and services 118 141 114 93 Balance at beginning of the year 55 33 55 28 Staff development 213 104 210 103 Bad debts recovered during the year (13) (3) (11) (3) Travel and motor vehicle expenses 488 590 488 590 Increase in provision recognised in the net result 28 82 25 78 Motor vehicle taxes 28 60 28 60 Bad debts written off during the year (55) (57) (55) (48) Other expenses 395 511 385 501 Balance at end of the year 15 55 14 55 Total other expenses 2,284 2,313 2,256 2,246 52 Sunraysia Institute of Technical and Further Education> 53 Financial Statements

Note 6 Investments and other financial assets Land at fair Assets under Plant and Motor Cultural value1 Buildings construction equipment Vehicles Assets Library Total Consolidated Institute $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 2015 2014 2015 2014 Year ended 31 December 2015 6 Investments and other financial assets $’000 $’000 $’000 $’000 Opening net book amount 4,728 24,971 77 3,890 634 93 85 34,478 Current investments and other financial assets Equities and managed investment schemes: Additions - - 2,715 41 201 - - 2,957 Australian dollar term deposits 70 69 - - Disposals - (59) - - (110) - - (169) Total current investments and other financial assets 70 69 - - Transfer into/(out of) assets under construction - 310 (355) 45 - - - (0) 2 Term deposits: Depreciation - (627) - (508) (130) - (19) (1,284) 36 34 36 34 Australian dollar term deposits Closing net book amount 4,728 24,595 2,437 3,468 595 93 66 35,982 Total term deposits 36 34 36 34 At 31 December 2015 Total non-current investments and other financial assets 36 34 36 34 Cost - 1,097 2,437 3,572 707 - 76 7,889 Total investments and other financial assets 106 103 36 34 Valuation 4,728 25,388 - 8,936 839 93 728 40,712 Accumulated depreciation - (1,890) - (9,040) (951) - (738) (12,619) Note 7 Inventories Net book value at the end of the Consolidated Institute financial year 4,728 24,595 2,437 3,468 595 93 66 35,982 2015 2014 2015 2014 Notes 7 Inventories $’000 $’000 $’000 $’000 1 Computers are now included in Plant and Equipment Current List type of inventories held Supplies and consumables - at cost 68 44 68 44 Land at fair Assets under Plant and Motor Cultural 1 Bungalows and SuniPODs 40 94 40 94 (b) Institute value Buildings construction equipment Vehicles Assets Library Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Total current inventories 108 138 108 138 At 1 January 2014 Cost - 112 714 1,708 598 - 76 3,208

Note 8 Property, plant and equipment Valuation 4,728 24,946 - 8,910 839 93 727 40,243 In accordance with government purpose classifications, the Institute’s property, plant and equipment are assets used for the purpose Accumulated depreciation - (625) - (7,897) (823) - (696) (10,041) of education. Property, plant & equipment includes all operational assets. Net book amount 4,728 24,433 714 2,721 614 93 107 33,410

Land at fair Assets under Plant and Motor Cultural Year ended 31 December 2014 1 value Buildings construction equipment Vehicles Assets Library Total Opening net book amount 4,728 24,433 714 2,721 614 93 107 33,410 (a) Consolidated $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Additions - - 1,928 8 220 - - 2,156 At 1 January 2014 Disposals - - - - (157) - - (157) Cost - 112 723 1,724 598 - 76 3,233 Transfer into/(out of) assets under Valuation 4,728 25,388 - 8,936 839 93 728 40,712 construction - 738 (2,595) 1,749 108 - - - Accumulated depreciation - (636) - (7,911) (823) - (697) (10,067) Depreciation2 - (620) - (618) (151) - (22) (1,411) Net book amount 4,728 24,864 723 2,749 614 93 107 33,878 Closing net book amount 4,728 24,551 47 3,860 634 93 85 33,998

Year ended 31 December 2014 At 31 December 2014 Opening net book amount 4,728 24,864 723 2,749 614 93 107 33,878 Cost - 850 47 3,465 696 - 76 5,134 Additions - - 1,949 13 220 - - 2,182 Valuation 4,728 24,946 - 8,910 839 93 727 40,243 Disposals - - - - (157) - - (157) Accumulated depreciation - (1,245) - (8,515) (901) - (718) (11,379) Transfer into/(out of) assets under Net book amount 4,728 24,551 47 3,860 634 93 85 33,998 construction - 738 (2,595) 1,749 108 - - - 2 Depreciation - (631) - (621) (151) - (22) (1,425) Year ended 31 December 2015 Closing net book amount 4,728 24,971 77 3,890 634 93 85 34,478 Opening net book amount 4,728 24,551 47 3,860 634 93 85 33,998 Additions - - 2,390 35 203 - - 2,628 At 31 December 2014 Disposals - 59 - - (110) - - (169) Cost - 850 77 3,486 696 - 76 5,185 Transfer into/(out of) assets under Valuation 4,728 25,388 - 8,936 839 93 728 40,712 construction ------Accumulated depreciation - (1,267) - (8,532) (901) - (719) (11,419) Depreciation - (613) - (504) (130) - (19) (1,266) Net book amount 4,728 24,971 77 3,890 634 93 85 34,478 Closing net book amount 4,728 23,879 2,437 3,391 597 93 66 35,191 54 Sunraysia Institute of Technical and Further Education> 55 Financial Statements

Note 8 Property, plant and equipment (continued) (d) Valuations of Property, Plant and Equipment For artwork, valuation of the assets is determined by a comparison In accordance with government purpose classifications, the Institute’s property, plant and equipment are assets used for the purpose Fair value assessments have been performed at 31 December 2015 to similar examples of the artists work in existence throughout of education. Property, plant & equipment includes all operational assets. for motor vehicles, plant & equipment and library collections. This Australia and research on prices paid for similar examples offered assessment demonstrated that fair value was materially similar at auction or through art galleries in recent years. No revaluation to carrying value, and therefore a full revaluation was not required was performed for artwork for the financial period ending at Land at fair Assets under Plant and Motor Cultural this year. 31 December 2015 value1 Buildings construction equipment Vehicles Assets Library Total (b) Institute $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Buildings were last revalued as at 31 December 2012 and land To the extent that non specialised land, non specialised buildings At 31 December 2015 was revalued as at 31 December 2012 and 31 December 2013, and artworks do not contain significant, unobservable adjustments, Cost - 787 2,437 3,500 709 - 76 7,509 demonstraining that the fair value of land was required to be these assets are classified as Level 2 under the market approach. Valuation 4,728 24,946 - 8,910 839 93 727 40,243 materially reduced. The next scheduled full revaluation for this Accumulated depreciation - (1,854) - (9,019) (951) - (737) (12,561) purpose Institute will be conducted in 2017. Specialised land and specialised buildings Net book value at the end of the The market approach is also used for specialised land, although is financial year 4,728 23,879 2,437 3,391 597 93 66 35,191 Vehicles adjusted for the community service obligation (CSO) to reflect the Vehicles are valued using the depreciated replacement cost method. specialised nature of the land being valued. Notes The Institute acquires new vehicles and at times disposes of them 1 Computers are now included in Plant and Equipment before the end of their economic life. The process of acquisition, The CSO adjustment is a reflection of the valuer’s assessment of the use and disposal in the market is managed by experienced fleet impact of restrictions associated with an asset to the extent that is Fair value hierarchy managers in the Institute who set relevant depreciation rates during also equally applicable to market participants. This approach is in Level 1 Level 2 Level 3 use to reflect the utilisation of the vehicles. light of the highest and best use consideration required for fair value Carrying amount Quoted Observable Un-observable measurement, and takes into account the use of the asset that is (c) Fair value measurement hierarchy for assets as at 31 as at 31 Dec 2015 Prices Price Inputs Inputs Plant and equipment physically possible, legally permissible, and financially feasible. As December 2015 $’000 $’000 $’000 $’000 Plant and equipment is held at fair value. When plant and equipment adjustments of CSO are considered as significant unobservable Classified in accordance with the fair value hierarchy, see Note 1 is specialised in use, such that it is rarely sold other than as part inputs, specialised land would be classified as Level 3 assets. Land at fair value: of a going concern, fair value is determined using the depreciated Non specialised land 600 - 600 - replacement cost method. For the Institute’s majority of specialised buildings, the depreciated Specialised land 4,128 - - 4,128 replacement cost method is used, adjusting for the associated Total of land at fair value 4,728 - 600 4,128 Non specialised land, non specialised buildings and artworks depreciations. As depreciation adjustments are considered as Non specialised land, non specialised buildings and artworks are significant, unobservable inputs in nature, specialised buildings Buildings at fair value: valued using the market approach. Under this valuation method, are classified as Level 3 fair value measurements. Non specialised buildings - - - - the assets are compared to recent comparable sales or sales of Specialised buildings 24,595 - - 24,595 comparable assets which are considered to have nominal or no An independent valuation of the Institute’s specialised land and Heritage assets - - - - added improvement value. specialised buildings was performed by the Valuer General Victoria. Total of buildings at fair value 24,595 - - 24,595 The valuation was performed using the market approach adjusted For non specialised land and non specialised buildings, an for CSO. The effective date of the valuation is 31 December 2012. Plant, equipment and vehicles at fair value: independent valuation was performed by independent valuers Vehicles1 595 - - 595 Eishold Property Real Estate Consultant’s on behalf of the Valuer There were no changes in valuation techniques throughout the Plant and equipment 3,468 - - 3,468 General Victoria to determine the fair value using the market period to 31 December 2015. Total of plant, equipment and vehicles at fair value 4,063 - - 4,064 approach. Valuation of the assets was determined by analysing comparable sales and allowing for share, size, topography, location For all assets measured at fair value, the current use is considered Cultural assets at fair value: and other relevant factors specific to the asset being valued. From the highest and best use. Artworks 93 - - 93 the sales analysed, an appropriate rate per square metre has been applied to the subject asset. The effective date of the valuation is Total of Cultural assets at fair value 93 - - 93 31 December 2012.

Library assets at fair value: Library collections 66 - - 66 Total of Library assets at fair value 66 66

Transfers between fair value hierarchy levels during the year There were no transfers between Levels during the year.

56 Sunraysia Institute of Technical and Further Education> 57 Financial Statements

Note 8 Property, plant and equipment (continued) Note 9 Intangible assets In accordance with government purpose classifications, the Institute’s property, plant and equipment are assets used for the purpose Consolidated Institute of education. Property, plant & equipment includes all operational assets. Software Total Software Total 9 Intangible Assets $’000 $’000 $’000 $’000 Non - Year ended 31 December 2014 Specialised Specialised Plant and Motor Cultural Gross carrying amount (e) Reconciliation of Level 3 fair land buildings equipment Vehicles Assets Library Total Opening balance 8,035 8,035 8,035 8,035 value as at 31 December 2015 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Additions - - - - Opening balance 4,128 24,971 3,890 634 93 85 33,801 Disposals (244) (244) (244) (244) Purchases (sales) - 251 86 91 - - 428 Impairment1 (3,398) (3,398) (3,398) (3,398) Depreciations - (627) (508) (130) - (19) (1,284) Closing balance 4,393 4,393 4,393 4,393 Subtotal 4,128 24,595 3,468 595 93 66 32,945 Closing balance 4,128 24,595 3,468 595 93 66 32,945 Accumulated depreciation, amortisation and impairment (909) (909) (909) (909) Unrealised gains/ (losses) on Opening balance non financial assets ------Amortisation of intangible non produced assets (798) (798) (798) (798) Disposals 242 242 242 242 (f) Description of Impairment1 677 677 677 677 significant Closing balance (788) (788) (788) (788) unobservable Sensitivity of fair value measurement Net book value at end of financial year 3,605 3,605 3,605 3,605 inputs to Level Significant Range (weighted to changes in significant 3 valuations Valuation technique unobservable inputs average) unobservable inputs 1 Specialised land Market approach Community Service 50–70% (60%) A significant increase or decrease in Consolidated Institute Obligation (CSO) the CSO adjustment would result in Software Total Software Total adjustment a significantly lower (higher) $’000 $’000 $’000 $’000 fair value. Year ended 31 December 2014 Specialised buildings Depreciated Direct cost per square $1 000–$1 500 /m2 A significant increase or decrease Gross carrying amount replacement cost metre ($1 300) in direct cost per square metre Opening balance 4,393 4,393 4,393 4,393 adjustment would result in a Additions 136 136 136 136 significantly higher or lower fair value. Disposals - - - - Impairment1 - - - - Useful life of specialised 30-60 years A significant increase or decrease Closing balance 4,529 4,529 4,529 4,529 buildings (45 years) in the estimated useful life of the asset would result in a significantly Accumulated depreciation, amortisation and impairment higher or lower valuation. (788) (788) (788) (788) Opening balance Plant and equipment Depreciated Cost per unit $3 000–$4 000 per unit A significant increase or decrease Amortisation of intangible non produced assets (428) (428) (428) (428) replacement cost ($3 500 per unit) in cost per unit would result in a Disposals - - - - significantly higher or lower Impairment1 - - - - fair value. Closing balance (1,216) (1,216) (1,216) (1,216) Useful life plant and 5–10 years (5 years) A significant increase or decrease in Net book value at end of financial year 3,313 3,313 3,313 3,313 equipment the estimated useful life of the asset Notes would result in a significantly higher 1 The consumption of intangible produced assets is included in ‘depreciation’ line item, where the consumption of the intangible non or lower valuation. produced assets is included in ‘net gain/(loss) on non financial assets’ line item on the comprehensive operating statement.

Motor vehicles Depreciated Cost per unit $9 000–$10 000 A significant increase or decrease replacement cost per unit in cost per unit would result in a ($9 500 per unit) significantly higher or lower fair value.

Useful life of vehicles 1–5 years (3 years) A significant increase or decrease in the estimated useful life of the asset would result in a significantly higher or lower valuation.

58 Sunraysia Institute of Technical and Further Education> 59 Financial Statements

Note 10 Other non-financial assets Note 12 Provisions Consolidated Institute Consolidated Institute 2015 2014 2015 2014 2015 2014 2015 2014 10 Other non-financial assets $’000 $’000 $’000 $’000 12 Provisions $’000 $’000 $’000 $’000 Current other non-financial assets Current provisions Prepayments 524 244 524 244 Employee benefits (Note 12(a))1 Total current other non-financial assets 524 244 524 244 Annual leave (Note 12(a)): - - - - Total other non-financial assets 524 244 524 244 Unconditional and expected to wholly settle within 12 months2 416 447 385 414 Long service leave(Note 12(a)): - - - - Note 11 Payables Unconditional and expected to wholly settle within 12 months2 261 238 254 234 2 Consolidated Institute Unconditional and expected to wholly settle after 12 months 1,513 1,381 1,468 1,355 2015 2014 2015 2014 2,190 2,066 2,107 2,003 11 Payables $’000 $’000 $’000 $’000 Current Provisions for on costs (Note 12(a) and Note 12(b)): - - - - Contractual Unconditional and expected to wholly settle within 12 months2 105 106 101 102 Supplies and services1 1,464 1,632 1,414 1,627 Unconditional and expected to wholly settle after 12 months2 234 217 232 214 Greener Government Building 209 190 209 190 339 323 333 316 Revenue in Advance 667 3,360 653 3,344 Total current provisions 2,529 2,389 2,440 2,319 Advances from Government - 225 - 225 2,340 5,407 2,276 5,386 Non-current Employee benefits (Note 12(a))1 378 425 363 402 Statutory On costs (Note 12(a) and Note 12(b)) 59 66 58 64 GST payable 126 87 126 87 Total non-current provisions 437 491 421 466 Total current payables 2,466 5,494 2,402 5,473 Total provisions 2,966 2,880 2,861 2,785

Non-current Consolidated Institute Contractual Greener Government Building 1,045 1,140 1,045 1,140 2015 2014 2015 2014 (a) Employee benefits and on costs1 $’000 $’000 $’000 $’000 Total non-current payables 1,045 1,140 1,045 1,140 Current employee benefits Total payables 3,511 6,634 3,447 6,613 Annual leave 416 447 385 414 Notes Long service leave 1,774 1,619 1,722 1,589 1 The average credit period is 30 days. 2,190 2,066 2,107 2,003 (a) Maturity analysis of contractual payables Please refer to Note 19(iii) for the maturity analysis of contractual payables. Non current employee benefits - - - - (b) Nature and extent of risk arising from contractual payables Long service leave 378 425 363 402 Please refer to Note 19(iii) for the nature and extent of risks arising from contractual payables. Total employee benefits 378 425 363 402

Current on costs 339 323 333 316 Non current on costs 59 66 58 64 Total on costs 398 389 391 380

Total employee benefits and on costs 2,966 2,880 2,861 2,785

Notes 1 Employee benefits consist of annual leave and long service leave accrued by employees. On costs such as payroll tax and workers’ compensation insurance are not employee benefits and are recognised as a separate provision. 2 Amounts are measured at present values.

60 Sunraysia Institute of Technical and Further Education> 61 Financial Statements

Note 12 Provisions (continued) Note 14 Cash flow information 2015 for the year ended 31 December 2015 $’000 Long Service Consolidated Institute (b(i)) Movement in provisions - Consolidated Annual Leave Leave On-costs Total 2015 2014 2015 2014 Opening balance 447 2,044 388 2,879 14 Cash flow information $’000 $’000 $’000 $’000 Additional provisions recognised 906 391 195 1,492 (a) Reconciliation of cash and cash equivalents Reductions arising from payments/other sacrifices of future Total cash and deposits disclosed in the balance sheet 5,228 2,608 4,964 2,084 economic benefits (937) (283) (184) (1,404) Balance as per cash flow statement 5,228 2,608 4,964 2,084 Closing balance 416 2,152 398 2,966

Consolidated Institute Current 416 1,774 339 2,529 2015 2014 2015 2014 Non-current - 378 59 437 (b) Financing facilities $’000 $’000 $’000 $’000 416 2,152 398 2,966 Unsecured bank overdraft facility, reviewed annually and payable at call Credit facilities 100 100 100 100 2015 Amount utilised - - - - $’000 Credit card facility 250 250 250 250 Long Service (b(ii)) Movement in provisions - Institute Annual Leave Leave On-costs Total Amount utilised 9 - 9 - Opening balance 414 1,991 380 2,785 359 350 359 350 Additional provisions recognised 824 378 180 1,382 Reductions arising from payments/other sacrifices of future Consolidated Institute economic benefits (854) (283) (169) (1,306) 2015 2014 2015 2014 Closing balance 385 2,085 391 2,861 (c) Reconciliation of net result for the period $’000 $’000 $’000 $’000 Net result for the year 6,241 (10,651) 6,225 (10,910) Current 385 1,722 333 2,440 Non-current - 363 58 421 Non cash movements: 385 2,085 391 2,861 (Gain) /l oss on sale or disposal of non current assets 37 (82) 37 (76) Depreciation and amortisation of non current assets 1,712 2,223 1,694 2,209 Impairment of non current assets - 2,723 - 2,723 Note 13 Reserves Net (gain)/loss on financial instruments 55 73 55 66 Consolidated Institute Movements included in investing and financing activities: 2015 2014 2015 2014 Movements in assets and liabilities 13 Reserves $’000 $’000 $’000 $’000 Decrease / (increase) in trade receivables 826 4,290 843 4,242 (a) Physical asset revaluation surplus1: Decrease / (increase) in inventories 30 73 29 73 Balance at 1 January 22,181 22,181 21,969 21,969 Decrease / (increase) in other assets (283) 53 (282) 56 Balance at 31 December 22,181 22,181 21,969 21,969 Increase / (decrease) in payables and other liabilities (3,121) 1,738 (3,166) 1,765 Net changes in reserves 22,181 22,181 21,969 21,969 Increase / (decrease) in employee benefits 85 212 77 202 Notes Net cash flows from/(used in) operating activities 5,582 652 5,512 350 1 The physical assets revaluation surplus arises on the revaluation of land and buildings.

62 Sunraysia Institute of Technical and Further Education> 63 Financial Statements

Note 15 Commitments for expenditure Note 17 Superannuation Consolidated Institute Employees of the Institute are entitled to receive superannuation benefits and the Institute contributes to both defined benefit and defined 2015 2014 2015 2014 contribution plans. The defined benefit plan(s) provides benefits based on years of service and final average salary. 15 Commitments for expenditure $’000 $’000 $’000 $’000 (a) Capital expenditure commitments payable The Institute does not recognise any defined benefit liability in respect of the plan(s) because the entity has no legal or constructive obligation Capital expenditure contracted for at the reporting date but not to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department recognised as liabilities is as follows: of Treasury and Finance recognises and discloses the State’s defined benefit liabilities in its financial statements. Property, Plant and Equipment Payable: However, superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the Statement Within one year 6,719 763 6,719 400 of Comprehensive Income of the Institute. Total Property, Plant and Equipment 6,719 763 6,719 400 GST reclaimable on the above (611) (69) (611) (36) The name and details of the major employee superannuation funds and contributions made by the Institute are as follows: Net Commitments Property, Plant and Equipment 6,108 694 6,108 364 Consolidated Institute Total capital expenditure commitments 6,108 694 6,108 364 2015 2014 2015 2014 17 Superannuation $’000 $’000 $’000 $’000 (b) Non-cancellable operating lease commitments payable1 Paid Contribution for the Year Commitments for minimum lease payments in relation to Defined benefit plans : non-cancellable operating leases are payable as follows: State Superannuation Fund – revised and new 78 90 78 90 Within one year 173 57 173 57 Total defined benefit plans 78 90 78 90 Later than one year but not later than five years 7 16 7 16 Total minimum lease payments in relation to non-cancellable Defined contribution plans: operating leases 180 73 180 73 727 786 683 753 GST reclaimable on the above (17) (7) (17) (7) VicSuper Other 623 586 585 573 Net Commitments Non-cancellable Operating Leases 163 66 163 66 Total defined contribution plans 1,350 1,372 1,268 1,326 Total Commitments 6,271 760 6,271 430 Total paid contribution for the year 1,428 1,462 1,346 1,416

Note 16 Contingent assets and contingent liabilities 1 The Institute does not have any contributions outstanding to the above funds and there have been no loans made from the funds. Contingent Liabilities The bases for contributions are determined by the various schemes. 1 The Institute has given an undertaking to its fully owned subsidary, TAFE Kids Incorporated, to provide financial support 2 The above amounts were measured as at 31 December of each year, or in the case of employer contributions they relate to the years to that organisation should the need arise. ended 31 December.

Note 18 Trust account balances Consolidated Institute 2015 2014 2015 2014 18 Trust account balances $’000 $’000 $’000 $’000 Trust account balances relating to Trust Accounts controlled and /or administered by the Institute: Cash and cash equivalents and investments Controlled trusts Dr Alan Antcliff Memorial Trust 36 34 36 34 Total controlled trusts 36 34 36 34 Total cash and cash equivalents and investments 36 34 36 34

Trust accounts opened and closed by the Institute during 2015: There were no trust accounts opened or closed by the Institute during 2015.

64 Sunraysia Institute of Technical and Further Education> 65 Financial Statements

Note 19 Financial instruments (ii) Credit risk (i) Financial risk management objectives and policies Credit risk arises from the contractual financial assets of the Institute, which comprise cash and deposits, non-statutory receivables. The Institute’s financial instruments comprise cash assets, term deposits, receivables (excluding statutory receivables) and payables The Institute’s exposure to credit risk arises from the potential default of a counter party on their contractual obligations resulting in (excluding statutory payables). financial loss to the Institute.

Credit risk is measured at fair value and is monitored on a regular basis by the finance committee. The finance committee monitors credit Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and risk by actively assessing the rating quality and liquidity of counterparties. 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. 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 Institute’s activities expose it to a variety of financial risks: market risk (interest rate risk ), credit risk and liquidity risk. The trade receivables balance at 31 December 2015 and 31 December 2014 do not include any counterparties with external credit ratings. Risk management is carried out by a central treasury unit with the Finance function of the Institute under policies approved by the Board. Customers are assessed for credit worthiness using the criteria detailed above. The Treasury Unit identifies, evaluates financial risks in close co-operation with the Institutes’s operating units. The Board provides written

principles for overall risk management, as well as policies covering specific areas, such as interest rate risk, credit risk and investment of The Institute minimises credit risk in relation to student loans receivable in the following ways:

excess liquidity. - Employed a Credit Manager to follow up on debts

The carrying amounts of the Institute’s contractual financial assets and financial liabilities by category are disclosed below: In addition, the Institute does not engage in hedging for its contractual financial assets and mainly obtains contractual financial assets that are on fixed interest, except for cash assets, which are mainly cash at bank. The Institute’s policy is to only deal with banks with high Consolidated Institute credit ratings.

Carrying amount of financial instruments 2015 2014 2015 2014 Provision of impairment for contractual financial assets is recognised when there is objective evidence that the Institute will not be able to

by category Note $’000 $’000 $’000 $’000 collect a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 90 days

(a) Loans and receivables overdue, and changes in debtor credit ratings.

Cash and deposits 5,228 2,608 4,964 2,084

Receivables: The carrying amount of contractual financial assets recorded in the financial statements, net of any allowances for losses, represents the Institute’s maximum exposure to credit risk without taking account of the value of any collateral obtained. Trade receivables 5 730 755 727 751

Loans to third parties 5 777 1,779 872 1,885 There are no material financial assets which are individually determined to be impaired. Currently the Institute does not hold any collateral Investment and other financial assets: as security nor credit enhancements relating to any of its financial assets. Term Deposits 6 106 103 36 34

Total loans and receivables 6,841 5,245 6,599 4,753 There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing credit risk or the methods used to measure this risk from the previous reporting period.

(b) Financial liabilities at amortised cost: Credit quality of contractual financial assets that are neither past due nor impaired1 Payables: Supplies and services 11 1,464 1,632 1,414 1,627 Financial Government Other payables 11 1,254 1,555 1,254 1,554 institutions agencies Other Total financial liabilities at amortised cost 2,718 3,187 2,668 3,181 (AA2 rating) (AAA rating) counter-party Total Total financial liabilities 2,718 3,187 2,668 3,181 2015 $’000 $’000 $’000 $’000 Cash and deposits 5,228 - - 5,228 Receivables Consolidated Institute - 777 730 1,508 Investments and other financial assets 106 - - 106 Net holding gain/(loss) on financial instruments 2015 2014 2015 2014 Total contractual financial assets 2015 5,334 777 730 6,841 by category Note $’000 $’000 $’000 $’000 (c) Impairment loss 2014 Financial assets - loans and receivables (55) (57) (55) (48) Cash and deposits 2,608 - - 2,608 Total impairment loss (55) (57) (55) (48) Receivables - 1,779 755 2,535 Investments and other financial assets 103 - - 103 Total contractual financial assets 2014 2,711 1,779 755 5,246

Note Ageing analysis of financial assets 1. 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 ageing analysis for the Institute’s financial assets.

66 Sunraysia Institute of Technical and Further Education> 67 Financial Statements

Note 19 Financial instruments (continued) (iii) Liquidity risk (ii) Credit risk Liquidity risk is the risk that the Institute would be unable to meet its financial obligations as and when they fall due. The Institute operates under payments policy of settling financial obligations within 30 days and in the event of a dispute, making payments within 30 days from Not past Past due but not impaired Impaired the date of resolution. Carrying due and not financial amount Less than 1‑3 3 months 1‑5 impaired 1 month months – 1 year years assets 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 $’000 $’000 $’000 $’000 $’000 $’000 $’000 manages liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring forecast and actual cash flows 2015 Financial assets and matching the maturity profiles of financial assets and liabilities. Receivables1: Trade receivables 745 567 112 37 29 - (15) The Institute has also established a standby facility of $100,000 to provide short-term cash, if required. Revenue receivables 777 777 - - - - - Investment and other financial assets: There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing liquidity risk or the Term Deposits 106 106 - - - - - methods used to measure this risk from the previous reporting period. Total 2015 financial assets 1,628 1,451 112 37 29 - (15) Maturity analysis of financial liabilities The following table discloses the contractual maturity analysis for the Institute’s financial liabilities. 2014 Financial assets

Receivables1: Trade receivables 810 617 94 17 82 - (55) Maturity dates Revenue receivables 1,779 1,779 - - - - - Carrying Nominal Less than 1‑3 3 months 1‑5 5+ amount amount 1 month months – 1 year years years Investment and other financial assets: Term Deposits 103 103 - - - - - $’000 $’000 $’000 $’000 $’000 $’000 $’000 2015 Financial liabilities Total 2014 financial assets 2,692 2,499 94 17 82 - (55) Payables1: Note Supplies and services 1,464 1,464 124 1,340 0 1 Receivables and payables disclosed here exclude statutory receivables and statutory payables (e.g. amounts owing to/from Victorian Other payables 1,254 1,254 209 1,045 Government, GST input tax credit recoverable and taxes payable). Total 2015 financial liabilities 2,718 2,718 124 1,340 209 1,045 -

2014 Financial liabilities Payables1: Supplies and services 1,632 1,632 587 1,042 2 1 Other payables 1,555 1,555 - - 415 1,140 Total 2014 financial liabilities 3,187 3,187 587 1,042 417 1,141 -

Note Receivables and payables disclosed here exclude statutory receivables and statutory payables (e.g. amounts owing to/from Victorian Government, GST input tax credit recoverable and taxes payable).

68 Sunraysia Institute of Technical and Further Education> 69 Financial Statements

Note 19 Financial instruments (continued) Weighted Total Carrying Interest rate exposure (iv) Market risk average Amount per Floating Fixed Non-Interest 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 effective rate Balance Sheet interest rate interest rate Bearing change and that this will have an adverse affect on the operating result and/or net worth of the Institute. e.g. an adverse movement in Consolidated 2014 % $’000 $’000 $’000 $’000 interest rates or foreign currency exchange rates. Financial assets Cash and deposits 2.63 2,608 1,703 - 905 The Institute’s exposures to market risk are primarily through foreign currency risk, interest rate risk and equity price risk. Objectives, Receivables: policies and processes used to manage each of these risks are disclosed below. Trade receivables - 755 - - 755

Loans to third parties - 1,779 - - 1,779 The Board ensures that all market risk exposure is consistent with the Institute’s business strategy and within the risk tolerance of the Investment and other financial assets: Institute. Regular risk reports are presented to the Board. Term Deposits 3.82 103 103 Total financial assets There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing market risk or 5,245 1,806 - 3,439 the methods used to measure this risk from the previous reporting period. Financial liabilities Interest rate risk Payables: Interest rate risk arises from the potential for a change in interest rates to change the expected net interest earnings in the current Supplies and services - 1,632 - - 1,632 reporting period and in future years, or cause a fluctuation in the fair value of the financial instruments. Other payables - 1,555 - - 1,555 Total financial liabilities - 3,187 - - 3,187 Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates. The Institute does not hold any interest bearing financial instruments that are measured at fair value, and therefore has no exposure to fair Sensitivity analysis and assumptions value interest rate risk. The Institute’s sensitivity to market risk is determined based on the observed range of actual historical data for the preceding five year period, with all variables other than the primary risk variable held constant. The Institute’s fund managers cannot be expected to predict Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market movements in market rates and prices. Sensitivity analyses shown are for illustrative purposes only. The following movements are interest rates. The Institute has minimal exposure to cash flow interest rate risk through its cash and deposits that are at floating rate. reasonably possible’ over the next 12 months: • a movement of 50 basis points up and down (2015: 50 basis points up and down) in market interest rates (AUD) There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing interest rate risk or the methods used to measure this risk from the previous reporting period. The following tables show the impact on the Institute’s net result and equity for each category of financial instrument held by the Institute Interest rate movements have not been sufficiently significant during the year to have an impact on the Institute’s year end result. at the end of the reporting period as presented to key management personnel, if the above movements were to occur.

The Institute’s exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities are set out in the Carrying Interest rate risk financial instrument composition and maturity analysis table below. amount - 50 basis points + 50 basis points

Result Equity Result Equity Financial instrument composition and interest Weighted Total Carrying Interest rate exposure Consolidated 31 December 2015 $’000 $’000 $’000 $’000 $’000 rate exposure average Amount per Floating Fixed Non-Interest Contractual financial assets effective rate Balance Sheet interest rate interest rate Bearing Cash and deposits 5,228 (26) (26) 26 26 Receivables 1,508 - - - - Consolidated 2015 % $’000 $’000 $’000 $’000 Investments 106 (1) (1) 1 1 Financial assets Total increase / (decrease) in financial assets Cash and deposits 2.12 5,228 5,228 - 6,842 (27) (27) 27 27 Receivables: Trade receivables - 730 - 730 Contractual financial liabilities Loans to third parties - 777 - 777 Payables 2,719 - - - - Investment and other financial assets: Total increase / (decrease) in financial liabilities 2,719 - - - - Term Deposits 3.84 106 106 - Total increase / (decrease) 9,561 (27) (27) 27 27 Total financial assets 6,841 5,334 - 1,508

Financial liabilities Payables: Supplies and services - 1,464 - - 1,464 Other payables - 1,254 - - 1,254 Total financial liabilities - 2,718 - - 2,718

70 Sunraysia Institute of Technical and Further Education> 71 Financial Statements

Note 19 Financial instruments (continued) (vi) Fair value estimation Carrying Interest rate risk The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. amount - 50 basis points + 50 basis points

Result Equity Result Equity Fair values of financial instrument asset and liabilities are determined using the fair value hierarchy that categorises the inputs to valuation Consolidated 31 December 2014 $’000 $’000 $’000 $’000 $’000 techniques used to measure fair value into three levels based on the degree to which the fair value is observable. Contractual financial assets

Cash and cash equivalents 2,608 (9) (9) 9 9 • Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities Receivables 2,535 - - - - that the Institute can access at the measurement date. Investments 103 (1) (1) 1 1 • Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for Total increase / (decrease) in financial assets 5,246 (9) (9) 9 9 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 Contractual financial liabilities based on observable market data (unobservable inputs).

Payables 3,187 - - - - The Institute considers that the carrying amount of trade receivables and payables is a reasonable approximation of their fair values due Total increase / (decrease) in financial liabilities 3,187 - - - - to the short-term nature of trade receivables and payables. Total increase / (decrease) 8,433 (9) (9) 9 9 Due to the short-term nature of the current receivables, their carrying value is assumed to approximate their fair value, and 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 values have not been written down as the Institute intends to hold these assets to maturity.

The carrying amounts and aggregate net fair values of financial assets and liabilities at balance date are:

2015 2014 Carrying Net Fair Carrying Net Fair Amount Value Amount Value $’000 $’000 $’000 $’000 Financial assets Cash and deposits 5,228 5,228 2,608 2,608 Receivables: Trade receivables 730 730 755 755 Loans to third parties 777 777 1,779 1,779 Investment and other financial assets: Term Deposits 106 106 103 103 Total financial assets 6,841 6,841 5,245 5,245

Financial liabilities Payables: Supplies and services 1,464 1,464 1,632 1,632 Other payables 1,254 1,254 1,555 1,555 Total financial liabilities 2,718 2,718 3,187 3,187

Note 1 Receivables and payables disclosed here exclude statutory receivables and statutory payables (e.g. amounts owing to/from Victorian Government, GST input tax credit recoverable and taxes payable).

72 Sunraysia Institute of Technical and Further Education> 73 Financial Statements

Other transactions Note 20 Responsible persons and executive officers Other related transactions and loan requiring disclosure under the Directions of the Minister for Finance have been considered and there are In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the no matters to report. following disclosures are made regarding responsible persons and executive officers for the reporting period. (iv) Executive officers (i) Minister The following persons also had authority and responsibility for planning, directing and controlling the activities of Institute during the The relevant Minister is The Hon. Steve Herbert, MP, Minister for Training and Skills. financial year: Remuneration of the Minister is disclosed in the financial report of the Department of Premier and Cabinet. Other relevant interests are Mr Frank Piscioneri declared in the Register of Members interests which is completed by each member of the Parliament. Mr Anthony Mills Ms Jenny Grigg Ms Tracey Forbes (ii) Chief executive officer (accountable officer) Ms Win Scott (appointed June 2006) Remuneration of executive officers The number of executive officers, excluding the chief executive officer, and their total remuneration during the reporting period are shown in Remuneration received or receivable by the chief executive officer in connection with the management of the Institute during the first two columns in the table below in their relevant income bands. the reporting period was in the range: The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, Remuneration received or receivable by the chief executive officer in connection with the management of the Institute during long service leave payments, redundancy payments and retirement benefits. the reporting period was in the range $200 000 - $209 999 (2014: $210 000 - $219 999). The total annualised employee equivalent provides a measure of full time equivalent executive offices over the reporting period. (iii) Members of the board Remuneration of the board members in connection with the management of the Institute are disclosed below. Ms Leonie Burrows Board Chair Total Remuneration Base Remuneration Mr Owen Russell Ministerial Nominee 2015 2014 2015 2014 Ms Trudie Chant Ministerial Nominee No. No. No. No. Mr Danny Grzan Ministerial Nominee (ended 31 March 2015) (Co-opted Member 1 April to 30 November 2015) Income range Mr Rod Markwell Board Nominee The number of executive officers whose total remuneration from Ms Kay Martin Board Nominee the Institute exceeded $100,000, separately identifying base re- Mr Geoff Dea Board Nominee muneration and total remuneration, disclosed within the income Mr Terry Jennings Board Nominee band of $10,000 in a table format: Ms Amanda Phillips Ministerial Nominee (commenced 1 December 2015) $130,000 - $139,999 - 1 - 1 Ms Lydia Senior Ministerial Nominee (commenced 1 December 2015) $140,000 - $149,999 4 3 4 3 Total number of executive officers 4 4 4 4 2015 2014 Total annualised employee equivalent (AEE) 4 4 4 4 $’000 $’000 Total amount of remuneration ($’000) 589 602 544 568 Remuneration of Board members Remuneration received, or due and receivable from the Institute in connection with the management Other transactions of the Institute. Includes termination payments and bonuses paid at end of contracts. 153 133 Other related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been considered and there are no matters to report.

Note 21 Related parties Key management personnel 2015 2014 Related parties disclosures are set out in Note 20 (Responsible persons and executive officers). No. No.

Income range Note 22 Controlled entities The number of board members whose total remuneration from the Institute was within the specified The consolidated financial statements incorporate the assets, liabilities and results of the following controlled entities in accordance with income bands are as follows: the accounting policy described in Note 1.04: Less than $10,000 1 1 $10,000 - $19,999 8 8 Equity holding $20,000 - $29,999 - 1 Country of 2015 2014 $30,000 - $39,999 1 - 22 Controlled entities incorporation Class of Shares % % Total number of board members 10 10 TAFE Kids Incorporated TAFE Kids Incorporated provides community child care services. The Association is controlled by Sunraysia Insitute of TAFE. Australia N/A 100% 100%

74 Sunraysia Institute of Technical and Further Education> 75 Note 23 Remuneration of auditors Consolidated Institute 2015 2014 2015 2014 23 Remuneration of auditors $’000 $’000 $’000 $’000 Remuneration of Victorian Auditor General’s Office for: Audit of the financial statements 31 29 27 27 Total remuneration of Victoria Auditor General’s Office 31 29 27 27 Remuneration of other auditors Remuneration for continuous auditors 87 112 87 66 Total remuneration of other auditors 87 112 87 66 Total Remuneration of auditors 118 141 114 93

Note 24 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 of the Institute in future financial years.

Note 25 Economic dependency Department of Education and Training The Sunraysia Institute of TAFE is dependent on the financial support of the Department of Education and Training for a significant volume of revenue to support General Profile Entitlements and Apprentice/Traineeship Entitlements.

Sunraysia Institute of TAFE is a body corporate established by the Education and Training reform Act 2006. Under the Act and the VET Funding Contract the Department of Education and Training provides payments to the Institute (Board). The funds are provided to assist the Institute SuniTAFE ... Start here, go far! to maintain assets and infrastucture and provide ancillary services in order to support delivery of training services.

Sunraysia Institute of TAFE is significantly dependent on the continued financial support of the State Government and in particular, the Requests for further information can be directed to: Department of Education and Training. The Department of Education and Training has provided Sunraysia Institute of TAFE with a credit facility Sunraysia Institute of TAFE of up to $5million, only to be drawn upon if required, and repayable in full by 30 June 2018 to address the concerns in relation to liquidity and Office of the CEO ongoing operational costs. Please refer Note 1 for further disclosure. PO Box 1904 Mildura VIC 3502 Note 26 Institute details Ph: 03 5022 3707 Institute details Email: [email protected] The principal place of business is: Sunraysia Institute of TAFE Additional copies can be obtained from: 453 Benetook Avenue, Mildura, Victoria 3500 Sunraysia Institute of TAFE

With a campus also located at: PO Box 1904 64 Sea Lake Swan Hill Road, Swan Hill, Victoria 3585 Mildura VIC 3502 160 Bromley Road, Robinvale, Victoria 3549 Ph: 03 5022 3792 46 Oke Street, Ouyen, Victoria 3490 Email: [email protected] This Annual Report is available online at www.sunitafe.edu.au

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