annual report 2015 - tastafe · 2015-10-28 · 1 july 2014 to 30 june 2015, and includes the...

ANNUALREPORT2015

www.tastafe.tas.edu.au

Bathurst Street Campus

Bender Drive Campus

Campbell Street Campus

Claremont Campus

Clarence Campus

Drysdale Campus

Hunter Street Campus

Burnie Campus

Alanvale Campus

Inveresk Campus

Launceston Campus

Smithton Campus

Devonport Campus

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The Honourable Jeremy Rockliff MP Minister for Education and Training Parliament House Hobart

Dear Minister

I am pleased to submit for your information and presentation to Parliament the TasTAFE Annual Report for the year ended 30 June 2015, in accordance with the requirements of Sections 83 and 84, of the Training and Workforce Development Act 2013.

The financial statements of TasTAFE and the Auditor-General’s report are included.

Yours sincerely

Nick Burrows Interim Chair, TasTAFE Board

OFFICE OF THE CEO

59 Collins Street, HOBART TAS GPO Box 2015, HOBART TAS 7001 Australia Ph (03) 6165 5671 Web www.tastafe.tas.edu.au Email [email protected]

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ABOUT THIS REPORTThe TasTAFE Annual Report 2014-2015 is a report to the Minister for Education and Training, the Honourable Jeremy Rockliff MP, required under Sections 83 and 84, of the Training and Workforce Development Act 2013.

This is a report on the operations of TasTAFE during the period 1 July 2014 to 30 June 2015, and includes the audited financial and performance statements and other information required under Section 27 of the Financial Management Act 1990.

All financial information presented in this report is consistent with the audited financial report for TasTAFE.

Queries in relation to this report should be addressed to:

The Chief Executive Officer TasTAFE GPO Box 2015 Hobart TAS 7001 [email protected]

Further information about TasTAFE can be obtained from the website: www.tastafe.tas.edu.au

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ABOUT TASTAFE .........................................................................................................................6

INTERIM CHAIR’S MESSAGE ....................................................................................................8

CEO’S MESSAGE ..........................................................................................................................9

OUR VALUES .............................................................................................................................. 10

AT A GLANCE ........................................................................................................................... 11

OUR BOARD ............................................................................................................................. 12

COMMITTEE REPORTS ........................................................................................................... 13

BOARD PROFILE ....................................................................................................................... 14

GOVERNANCE ......................................................................................................................... 16

CORPORATE PLAN ................................................................................................................. 17

STRATEGIC INTENT 2014-2017 .......................................................................................... 18

RISK MANAGEMENT .............................................................................................................. 20

ORGANISATION STRUCTURE ............................................................................................ 21

KEY TARGET AREA 1 : EDUCATION AND TRAINING ................................................. 22

KEY TARGET AREA 2 : PARTICIPATION TO COMPLETION ........................................ 23

KEY TARGET AREA 3: PEOPLE AND CULTURE .............................................................. 25

KEY TARGET AREA 4: ENTERPRISE AND SYSTEMS ....................................................... 26

VOCATIONAL EDUCATION AND TRAINING STATISTICS ....................................... 27

WORKFORCE STATISTICS AND HUMAN RESOURCE MANAGEMENT ............... 32

WORK, HEALTH AND SAFETY ............................................................................................ 37

ENVIRONMENTAL SUSTAINABILITY ................................................................................. 39

FINANCIAL AND COMPLIANCE INFORMATION ........................................................ 40

STATEMENT OF CERTIFICATION ....................................................................................... 41

INDEPENDENT AUDITOR’S REPORT ................................................................................ 42

STATEMENT OF COMPREHENSIVE INCOME ................................................................. 44

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015 .................................. 45

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2015 ................. 46

STATEMENT OF CHANGES IN EQUITY ........................................................................... 47

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS ................... 48

DISCLOSURES AND ADDITIONAL COMPLIANCE REPORTS ................................... 73

ACRONYMS ............................................................................................................................... 75

CAMPUS LOCATIONS ........................................................................................................... 76

Contents

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Owned by the Tasmanian Government, TasTAFE operates under the auspices of its own legislative functions and powers and is governed by an independent Statutory Board which reports to the Minister for Education and Training.

To achieve its legislated functions, TasTAFE partners with appropriate organisations to ensure the needs of its student and client base are met.

TasTAFE operates within the broader Tasmanian educational system as a commercially autonomous organisation that has a specific role to:

• engage with individuals who require support to gain vocational ready SKILLS

• deliver vocational qualifications to individuals who wish to advance their career OPPORTUNITIES

• create more rewarding and sustainable FUTURES for the community

• assist employers to lift the productivity of their workforces through skill development.

TasTAFE is the largest public provider of vocational education and training in Tasmania and one of the 10 largest RTOs in Australia.

TasTAFE offers more than 370 nationally accredited and industry-endorsed qualifications from Certificate I to Advanced Diploma level, to short courses and pre-vocational programs.

About TasTAFE

ABOUT TASTAFE6

TasTAFE delivers training to over 28,000 students located across Tasmania and is well placed to provide economic and social benefits through the provision of accredited, vocationally-based qualifications and skills sets.

Clients include people already engaged in the workforce, those preparing to enter the workforce and employers, through meeting their workforce development needs.

TasTAFE is Tasmania’s largest provider of training for apprentices and trainees and has built strong relationships with a diverse range of external clients.

As well as delivering training at the 13 campuses across Tasmania, TasTAFE also offers workplace training to business and industry to deliver programs nationally and internationally in countries including China, Kuwait and the Philippines.

TasTAFE is an organisation with the ability to meet the challenge of the many variables and complexities facing the current vocational education and training (VET) environment – all whilst meeting the needs of clients, maintaining a positive workplace and meeting the organisation’s goals and priorities.

The TasTAFE logo symbolises TasTAFE’s position as a contemporary vocational education and training provider.

Composed of a series of interlocking arcs arranged in a form that represents growth, development and progress, the TasTAFE ‘ripple’ also reflects the idea that the core operations of TasTAFE have an effect on the broader social community and, in turn, the Tasmanian economy... a ‘ripple effect’.

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It was with a great deal of pride that I took over as the Interim Chair of the TasTAFE Board at the start of 2015.

On behalf of the Board I wish to strongly recognise the ongoing support of our Minister, the Hon Jeremy Rockliff MP, and the Tasmanian State Government.

I would also like to take this opportunity to warmly acknowledge our founding Chair, Kathryn Thomas for her significant efforts in guiding TasTAFE from its inception to her resignation in January 2015.

TasTAFE’s imprint on the Tasmanian VET landscape is significant. We are developing an organisation that meets the challenges of the VET environment, the diverse needs of our learners, and the evolving needs of Tasmanian employers.

During the last 12 months, we have maintained our focus on bringing tangible long-term benefits to Tasmania and Tasmanians through skills development. We have a very clear vision of supporting all Tasmanians to gain the skills and knowledge they will need to have productive lives through appropriate training and competencies.

We have also invested a lot of time and energy in redesigning the way the organisation is structured and operates so that it is positioned as the contemporary organisation that it should be.

Over the past year, TasTAFE has taken in more than 38,000 enrolments representing more than 28,000 students, delivered over 7.2 million hours of training and issued close to 10,000 qualifications. Those 28,000-plus students achieved a diverse scope of 370 qualifications, 73 units and 21 accredited courses across a range of industries, sectors and foundational skills.

These students have gone into employment, gained promotions

and taken up further study towards higher qualifications. They are our best advocates – employed, qualified and actively contributing to Tasmania’s future.

In fulfilling our governance role, the TasTAFE Board has consistently sought to conduct ourselves in a way that promotes trust and confidence in what we do and the way in which we do it. We demonstrate integrity, leadership, competence, accountability and transparency as strong values underpinning all our actions and decisions.

We have also delivered on our legislative requirements. With a focus on growth sectors within Tasmania, we established and strengthened key stakeholder relationships with industry peak bodies, Skills Tasmania, key employers, other Registered Training Organisations (RTOs), the University of Tasmania and the Department of Education.

We have been consistently committed to maintaining TasTAFE’s reputation for providing quality education and training across the state.

Together the TasTAFE Board, TasTAFE Chief Executive Officer, his executive team, teaching and

non-teaching staff are building a dynamic organisation that meets the current and emerging needs of the Tasmanian workforce, community and economy.

As a Board and an organisation, I know that we are inspired by the opportunities that are before us.

We also recognise the important role TasTAFE plays in driving Tasmania’s economic and social future. We will continue to work to ensure Tasmania’s workforce and community prospers and succeeds through delivering our vocational education and training agenda.

I would like to place on record my and the Board’s strong appreciation of our CEO, Stephen Conway, our executive team and all our teaching and non-teaching staff for their tireless efforts and support in steering TasTAFE through what at times have been a challenging but always rewarding first two years of operation.

I would also like to personally thank my fellow Board colleagues for their support, guidance and diligence in undertaking their duties and look forward to working with all at TasTAFE over the coming year.

Nick Burrows Interim Chair, TasTAFE Board

INTERIM CHAIR’S MESSAGE8

It is with great pride that I present the 2014-2015 Annual Report for TasTAFE.

TasTAFE’s contribution to this point has come about through our staff and partners willingness to work within an environment of positivity, future focus and innovation.

I am immensely proud of the manner in which staff have responded to our “One TAFE. One Team” approach and the related redesign activity. The way in which the culture and structure of the organisation and our internal/external relationships have developed will ensure we continue to deliver on our strategic goals in the Corporate Plan.

As I have moved around the state engaging with staff and our students, I hear ongoing affirmation of the value that people gain from working and studying at TasTAFE. Of course, I have also heard about some things that we haven’t quite got right, but the manner in which we receive, give and respond to feedback on improvements that are needed is also a strong testament to the TasTAFE team. This was well illustrated by our nomination for the Award of National Large Training Provider of the Year. Once again, we have been nominated

for the Tasmanian Large Training Provider of the Year in 2015.

The ability of our managers and leaders to use their resources across a wide range of courses to increase flexibility and responsiveness has set a high standard of meeting student, employer and other client expectations. However, even though we are all proud of what has been achieved, we have a long way to go to reach our own aspirations. We are still building our capability and capacity to meet these expectations. Where we determine there is a strategic imperative, we have also reached out for partners who will gain mutual benefit from working with us.

I would like to acknowledge the expertise, commitment and leadership of our past TasTAFE Board Chair, Kathryn Thomas, as well as our Interim Chair, Nick Burrows. I also want to thank the Board for their strong guidance and support throughout the past year. TasTAFE is fortunate to have a Board of Directors that provide excellent strategic oversight in our operation and establish a strong future direction for us.

I also want to sincerely thank the Executive team, managers and

staff for their loyalty, commitment, hard work and professionalism in creating a positive and dynamic environment in which our students can achieve excellence and which enables TasTAFE to thrive in a competitive VET marketplace.

Our goal is to provide vocational education, training services and solutions that ensure Tasmanian students and businesses have the skills and knowledge they need to optimise their future opportunities, and I believe this Annual Report clearly shows that we are delivering upon this key target.

Stephen Conway CEO

CEO’S MESSAGE9

OUR VISION

TasTAFE enables Tasmanians to gain the skills and qualifications needed for the state’s workforce and the community to succeed and prosper.

OUR PURPOSE

To provide vocational education, training services and solutions that ensure students and businesses have the skills and knowledge they need to optimise their future opportunities.

OUR VALUES

TasTAFE staff care about the achievement and success of individual students, employers and industry and know the benefits of a community rich with skills and knowledge.

While the State Service Principles prescribe how TasTAFE staff should lead, manage and behave at work, TasTAFE staff have agreed to a particular organisational culture underpinned by specific values and behaviours.

Embracing these values will ensure all TasTAFE staff are working and leading ‘the TasTAFE way’ – that is One TAFE. One TEAM.

THE TASTAFE VALUES ARE:

Courageous – we will step outside what is ‘normal’ and take on new or challenging activities, projects or responsibilities.

Inspirational – we will make a difference to the vocational education and training experience of our students through being authentic in our words and actions.

Curious – we are interested in new ideas, think innovatively and imaginatively and challenge existing practices.

Positive – we embrace continuous improvement on a journey towards excellence; we grasp opportunities, look for ways to say ‘yes’ and make positive self and organisational changes.

Connected – we are connected with our students, partners, industry and the community, and strive to build strong relationships and collaborate with others to open up new possibilities.

Accountable – we are transparent and objective in our decision-making, and seek to be environmentally, socially and economically responsible and sustainable.

At TasTAFE we embrace values that will ensure all TasTAFE staff are working and leading ‘the TasTAFE way’ – that is, One TAFE. One TEAM.

Our values

VISION, PURPOSE, VALUES10

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

28,841 7.2MILLION 9,758 4,065 918STUDENTS WERE ENROLLED

HOURS OF TRAINING DELIVERED

QUALIFICATIONS ISSUED

ACTIVE APPRENTICES

OFFSHORE ENROLMENTS

55.8%TasTAFE students were studying at Certificate III or higher 376

students were studying to start

their own business

20.9%of qualifications issued were relevant to the health and community services industry

4.7%of TasTAFE students are indigenous

0.6% of students resided in very remote areas of Tasmania38%

of students studying were

full-time employees

47%of students

were from low socio-economic

areas

students were aged between 16-24 years10,942

more than

370nationally accredited

qualifications

88%of students agree that teachers/trainers had

an excellent knowledge of the subject content

88%of employers agree teachers/trainers were effective in

their teaching

90%of employers agree

that TasTAFE graduates are highly valued in their business

2015 Independent Student and Employer Client Survey

TASTAFE AT A GLANCE11

The Board is responsible to the Minister for Education and Training in meeting the expectations of the State Government. The Board performs this role by:

• clearly identifying and articulating TasTAFE’s strategic direction though its Corporate Plan

• identifying and addressing TasTAFE’s principle risks

• monitoring TasTAFE’s conduct and performance through an integrated framework of controls

• ensuring all of TasTAFE’s business is conducted in an honest, open and ethical manner

• appointing and monitoring the performance of the Chief Executive Officer

• ensuring adequate succession planning is undertaken.

The Board meets regularly and is supported by two committees.

MEETINGS OF DIRECTORS (INCLUDING MEETINGS OF COMMITTEES OF DIRECTORS)

The table below sets out the number of Directors’ meetings (including meetings of Committees of Directors) held during the financial year and the number of

meetings attended by each Director (while they were a Director or Committee Member).

During the reporting period, 12 Board meetings, seven Audit and Risk Management committee meetings and five Work Health Safety and Environment committee meetings were held.

TasTAFE is a stable, state-owned asset that operates under the auspices of its own legislative functions and powers and is governed by an independent Statutory Board which reports to the Minister for Education and Training.

Our Board

OUR BOARD

BOARD OF DIRECTOR MEETINGS

AUDIT AND RISK MANAGEMENT COMMITTEE

WORK HEALTH SAFETY AND ENVIRONMENT COMMITTEE

HELD ATTENDED HELD ATTENDED HELD ATTENDED

Kathryn Thomas 7 7 4 4 5 N/A

Nick Burrows 12 12 7 7 5 N/A

Christine Mucha 12 12 N/A N/A 5 5

Neville Smith 12 12 7 7 5 4

Michelle Swallow 12 12 N/A N/A 5 5

Bob Gozzi 12 12 N/A N/A 5 N/A

Mike Brough 12 12 7 6 5 N/A

Source: TasTAFE data

From left (back) Nick Burrows, Michelle Swallow, Christine Mucha, Neville Smith, (seated) Mike Brough, Bob Gozzi.

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COMMITTEE REPORTS

AUDIT AND RISK MANAGEMENT The Audit and Risk Management Committee is a committee of the Board of TasTAFE and is appointed as part of the governance structure of the organisation and pursuant to the requirements of the Training and Workforce Development Act 2013. The Auditor-General of Tasmania is the external auditor of TasTAFE.

The committee is chaired by Nick Burrows and comprises three directors. Representatives from management (including the CEO, TasTAFE), representatives from the Tasmanian Audit Office and a representative from the Department of Education’s Internal Audit Office attend committee meetings. The Executive Officer is a TasTAFE staff member.

The Board approves the Audit and Risk Management Committee’s Charter which sets out its roles, responsibilities, membership, meeting process, Board reporting requirements and performance evaluation requirements.

During 2014-15, the committee’s major focus was to maintain the committee’s current governance arrangements and continue to monitor risk management and internal control systems, progress the development and implementation of a coordinated internal audit strategy, review the financial year-end external audit process and associated financial statement preparation disciplines, and assist management with the development of a range of financial policies.

WORK, HEALTH AND SAFETYThe Work, Health and Safety Committee is a committee of the Board of TasTAFE. It has been confirmed that TasTAFE is a ‘Person Conducting a Business or Undertaking’ and the TasTAFE Board has the primary duty of care for ensuring that as far as is reasonably practicable, the health and safety of workers and all other persons at TasTAFE are not put at risk from TasTAFE work or activities carried out.

The Board ensures that work health and safety is discussed at every Board meeting and gives guidance to the committee as appropriate.

The Work, Health and Safety Committee is currently chaired by Christine Mucha and comprises three directors. Representatives from management including the CEO and Manager People, Culture and Safety, Senior Consultant Work, Health and Safety and a TasTAFE staff member as the Executive Officer also attend the committee meetings.

The Board approves the Work, Health and Safety Committee’s Charter. Under the Charter the purpose of the committee is to assist the Board in ensuring that TasTAFE:

• embraces and promulgates a culture of safety; protecting staff, students, contractors and visitors

• evaluates the adequacy and effectiveness of TasTAFE’s workplace health and safety policy and strategies with particular reference to achieving ongoing improvement

• monitors compliance with applicable health and safety legislative and regulatory obligations

• monitors the response to all lost time injuries and reportable incidents

• monitors work, health and safety performance (and that of its contractors, students and visitors) including against key performance indicators, progress of and management of response to audits, and the comparison of performance against industry benchmarks.

During 2014-15 the focus was ensuring that the required policies and reporting were in place, the development of procedures and encouraging a culture of safety within TasTAFE.

The committee continued to monitor and regularly reported to the Board on the progress of the State Government’s State Service Management Office WHS Management System 2014 Audit.

TasTAFE’s Circle of Safety framework provided an effective tool to monitor progress on the key elements of TasTAFE’s WHS Management System.

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MR NICK BURROWS Nick holds a diverse portfolio of Board and Board Committee positions across listed, private, not-for-profit and government sectors including Chairman of Tasmanian Quality Assured Inc (in the not-for-profit sector) and Non-Executive Director of Clean Seas Tuna Limited, Metro Tasmania Pty Ltd and TasWater. He also serves as Finance Director of Value Adviser Associates.

Nick has extensive experience as an Audit and Risk Committee Chair and was formerly Chief Financial Officer and Company Secretary of Tassal Group Limited.

He has contemporary Board, corporate governance, business restructuring, finance and business management expertise, and significant operational understanding of corporate accounting and treasury functions.

Nick is a respective Fellow of the Australian Institute of Company Directors, Institute of Chartered Accountants Australia, Governance Institute of Australia Ltd and the Financial Services Institute of Australasia and is a Chartered Accountant and Registered Company Auditor.

MR NEVILLE SMITHBorn and educated in New Zealand with an honours degree in science (chemistry) Neville migrated to Tasmania with his family in 1979.

Since then he has been involved at senior management level at a number of wood product organisations in Tasmania and mainland Australia including, more recently, the pulp mill project.

Neville’s involvement in vocational education training has included directorships with the former TAFE Tasmania and the Tasmanian Skills Institute.

DR CHRISTINE MUCHAChristine has extensive executive management experience including over 14 years as CEO in the Tasmanian water industry, Hobart Water and Onstream until her resignation in 2011.

Christine holds a Bachelor of Agricultural Science degree, Doctor of Philosophy, Post graduate diploma in Agricultural Economics and has studied Advanced Management at Insead International School of Business Management, France. She is a Fellow of the Australian Institute of Company Directors and Companion of Engineers Australia.

Her expertise encompasses change management, organisational transition and growth, strategic and operational improvements and stakeholder management.

Christine’s other Board and Committee appointments include Chair Wellington Park Management Trust, Director Forestry Tasmania, independent Director Dial before you Dig Victoria/Tasmania, Director Lifeline Tasmania, member Inland Fisheries Advisory Council (Tasmania), RDA Tasmania, and Tasmanian Natural Resource Management Council.

BOARD PROFILE14

MR BOB GOZZIBob has wide experience in the private and public sectors in Tasmania. He came from Cadbury Schweppes to accept an appointment as an inaugural Commissioner of the Tasmanian Industrial Commission, where he oversaw a broad range of industry and state service portfolios including Education and TAFE.

On returning to the private sector, Bob accepted a full time consulting role in the aluminium industry including business development in Japan, USA and United Arab Emirates. Currently Bob is New Business Development Consultant to Blundstone Australia, responsible for coordinating market entry initiatives in SE Asia.

With over 30 years of involvement in the Tasmanian business environment, including Board and other leadership roles with employer organisations, Bob has established and maintained a wide network of industry and business relationships.

Bob is current Chairman of the Hobart Chamber of Commerce and a Board Member of the Menzies Institute for Medical Research.

MR MIKE BROUGHMike has extensive experience in vocational education and training (VET) and government administration.

His VET experience extends over 30 years and includes appointments as a TAFE teacher, manager and college director, as well as senior positions with responsibility for Tasmania’s VET system, including VET policy, strategy, regulation and operations – most recently as General Manager, Skills Tasmania.

Mike has represented Tasmania in many state and national forums and has been an active participant in the establishment and evolution of the national VET system. He also held positions as state and national president of TAFE teacher unions.

Mike has a Bachelor of Business degree and teaching qualifications and is a Fellow of CPA Australia.

He is currently Principal Consultant with Mike Brough Consulting specialising in VET policy and strategy.

MS MICHELLE SWALLOWMichelle has extensive experience in non-executive director and executive positions in the community sector and has been an active member of a number of not-for-profit boards. She has represented community sector organisations at state and national level.

Michelle is a Fellow of the Australian Institute of Company Directors, has a Bachelor of Social Work and has studied at London Business School in Negotiating and Influencing.

Michelle is a graduate of the Tasmanian Leaders Program and is currently Director of Leadership and Change Consultants Pty Ltd.

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CORPORATE GOVERNANCEThe TasTAFE Board is responsible to the Minister for Education and Training.

The TasTAFE Board must take all reasonable steps for the advancement of the objectives of the organisation, while operating in accordance with the economic and social objectives and public sector policy established from time to time by the Minister.

While meeting its objectives, the Board is also required to comply with the Training and Workforce Development Act 2013 and provide all assistance and information to the Minister or his delegates.

The TasTAFE Board carries out its responsibilities within a framework of corporate governance policies and practice documents which outline the commitment to act ethically, openly, fairly, and diligently.

In recognising the need for the highest standards of corporate behaviour and accountability, the Board references the ASX Corporate Governance Council’s Principles as their framework for good governance:

• Principle 1. Lay solid foundations for management and oversight

• Principle 2. Structure the Board to add value

• Principle 3. Promote ethical and responsible decision-making

• Principle 4. Safeguard integrity in financial reporting

• Principle 5. Make timely and balanced disclosure

• Principle 6. Respect the rights of stakeholders

• Principle 7. Recognise and manage risk

• Principle 8. Remunerate fairly and responsibly.

GOVERNANCE

MINISTER’S POLICY EXPECTATIONSAs part of the Training and Workforce Development Act 2013, TasTAFE is required to comply with the following Minister’s Policy Expectations:

1. Through working towards the objectives of its Corporate Plan, TasTAFE will contribute to the achievement of the Ministerial Priorities of the Tasmanian Training and Workforce Development system. This includes organisational changes necessary to adapt and operate sustainably in an increasingly competitive and quality focussed environment.

2. TasTAFE will work constructively and collaboratively with the Department of State Growth to design and subsequently deliver on the educational quality and performance outcomes of a mutually agreed Deed of Purchasing Arrangement. Activity delivered under the Deed of Purchasing Arrangement will promote participation in vocational education and training, equity and the delivery of services in markets, all of which will contribute to Tasmanian workforce participation. TasTAFE will consult with stakeholders and keep the Minister informed as to any change in the scope of their services.

3. TasTAFE will work collaboratively with the University of Tasmania and the Department of Education, other agencies and community leaders as appropriate to:

• raise awareness within the Tasmanian community about the importance of valuing education particularly the need to increase Year 12 TCE completion rates through a variety of pathways, including VET; improve adult literacy levels and lift tertiary qualifications for Tasmanians.

• ensure the successful extension of Tasmanian high schools to Years 11 and 12 including appropriate VET pathways such as VET in Schools and School-based Apprenticeships.

4. TasTAFE will form a strategic partnership or other equally effective arrangement/s with the Department of Education to improve efficiency and effectiveness in the delivery of foundation skills training particularly in regional and rural areas.

5. TasTAFE will deliver structural savings targets as defined through the 2014-2015 State Budget process, including the redesign of the organisation to ensure responsiveness and sustainability.

6. TasTAFE will work towards becoming an exemplary industry partner in Tasmania, and an employer of choice with collaboration, consultation and responsiveness acknowledged by both staff and external stakeholders as key characteristics of the organisation.

MINISTERIAL DIRECTIVES

For the period 1 July 2014 – 30 June 2015, no Ministerial Directives were received.

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CORPORATE PLAN

An Annual Implementation Plan was also developed and progress of this Plan was monitored by the Strategic Action Group and Executive.

Over the last 12 months, the majority of the enabling frameworks and strategies listed in the Corporate Plan 2014-17 have been enacted including:

• The Disability Action Plan

• TasTAFE Educational Blueprint

• Growing TasTAFE

• The Indigenous Action Plan

• Quality Management System – Teaching and Learning

• TasTAFE Risk Management Framework

• The Rural and Remote Strategy

• TasTAFE Business Model

• TasTAFESAFE.

KEY TARGET AREASThe Corporate Plan outlines TasTAFE’s four key target areas that are the foundation of success for the organisation in pursuing its vision and working in alignment with its purpose.

The Strategic Intent matrix (next page) aligns each Key Target Area to each of the four focus areas and describes how the Key Target Areas impacts on each of them.

KEY TARGET AREA 1: EDUCATION AND TRAINING

GOAL: Our education and training activities are focused on the best outcome for students, employers, industry and the community.

KEY TARGET AREA 2: PARTICIPATION TO COMPLETION

GOAL: TasTAFE systems, facilities and staff enable and support students to participate in training that benefits individuals, industry, employers and community through to completion.

KEY TARGET AREA 3: PEOPLE AND CULTURE

GOAL: TasTAFE’s people and organisational culture is positive and promotes safety and customer focus leading to best possible outcomes for staff, students, employers, industry and community.

KEY TARGET AREA 4: ENTERPRISE AND SYSTEMS

GOAL: TasTAFE’s business model enables it to operate as a vibrant sustainable organisation.

In March 2015, TasTAFE’s Corporate Plan 2014-2017 was reviewed.

On 31 May 2015, the draft Corporate Plan for 2015-18 was provided to the Minister for Education and Training in line with requirements of the Training and Workforce Development Act 2013.

Corporate Plan

In September 2014, Minister Rockliff endorsed TasTAFE’s 2014-2017 Corporate Plan and provided six policy expectations for TasTAFE which were mapped to the Plan.

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KEY TARGET AREAS

EDUCATION and TRAINING PARTICIPATION to COMPLETION PEOPLE and CULTURE ENTERPRISE and SYSTEMS

OU

R FO

CU

S

STUDENTS

• An Education Blueprint is developed to maximise student outcomes.

• TasTAFE’s Virtual Learning Environment enables more students to have access to contemporary blended learning models.

• Products and services are regularly validated and reviewed.

• Student feedback is used for continuous improvement.

• A ‘future students’ focus is introduced to grow TasTAFE.

• TasTAFE’s Literacy and Numeracy strategy assists students to complete qualifications.

• Pathway Plans, including relevant support, are in place for each student.

• The delivery methodology uses a contemporary approach where the individual student is the focus.

• Staff capability around the ‘studentexperience’ is assessed against national averages for VET.

• A Teaching, Learning and Assessment Charter outlines our commitment to all students.

• Safety is a priority for all.

• Delivery of training in Tasmania is at the median of the national cost benchmark.

• Students are supported by relevant andeffective support systems.

• VET FEE-HELP courses are available to eligible students.

• Student completion rates and qualification outcomes are monitored.

• TasTAFE’s eBusiness strategy increases access to training.

• Graduates who have the skills, knowledge and attitude to develop their careers.

• Students who are active ambassadors for TasTAFE.

• TasTAFE is viewed as a competitive,cost-effective VET provider.

EMPLOYERS

• Student, graduate and employer surveys are conducted annually.

• Employer feedback is used for continuous improvement.

• Work placement is built into pre-employment programs.

• Employers are provided with regularupdates on what courses are offered andwhen.

• Education and training programs are tailored to suit employer needs.

• Staff are connected with employers ofexisting students.

• TasTAFE ensures employer expectations are met through a systemic approach.

• TasTAFE’s delivery teams work with employers to ensure industry validation occurs.

• Students are acknowledged by employers as being ‘work ready’.

• TasTAFE is the first choice for up-skilling existing workers.

INDUSTRY and COMMUNITY

• Industry advisory arrangements are in place and valued.

• Products and services are validated against industry standards.

• Community feedback provides continuous improvement.

• Community-based projects are supported and encouraged.

• TasTAFE actively engages with peak industry bodies and associations.

• A Rural and Remote strategy improves access to all Tasmanians to TasTAFE products and services.

• Community-based facilities, including LINC Tasmania sites, form part of our delivery service.

• Staff are connected with industryassociations and actively seek industry advice.

• The TasTAFE workforce profile aligns with industry and community needs.

• Teaching staff actively maintain vocationalcompetence and currency.

• Available subsidies are used to support isolated communities.

• Utilisation rates of TasTAFE facilities improve with increased third party access.

• Industry members recognise TasTAFE graduates as contributing to their productivity improvements.

• TasTAFE develops a reputation as a strong member across the Tasmanian, national and global training community.

PARTNERS

• Partnerships are established on the basis of mutual benefit.

• Purposeful pathways are developed with compulsory education and tertiary sector providers.

• Partnerships are established that focus upon increased access to VET programs.

• The Department of Education and University of Tasmania are key partners with the broader Tasmanian education system.

• The value of volunteers is recognised to support appropriate activities.

• Community engagement activities are valued and encouraged.

• Staff draw on TasTAFE’s values andbehaviours to optimise mutually beneficial partnerships.

• A Strategic Asset Management System will be developed with the Department of Education.

• A best practice approach to contract management is in place.

• A partnership enterprise model enhances student outcomes.

• TasTAFE has mutually beneficial partnerships with a range of organisations.

• TasTAFE manages partnerships using appropriate agreement protocols.

• Highly valued VET products and services. • All delivery teams work in accordance

within the national VET regulatory framework.

• Increased student participation and completion rates.

• A strong network of online and campus-based access points across Tasmania.

• Adoption of an ‘enterprise’ approach to student learning.

• All staff contribute poitively to thestudent experience.

• TasTAFE meets and exceeds the COMPLETIONCAT national averages.

• Staff surveys indicate a very highsatisfaction rate.

• The organisational culture is positive and promotes safety and a customer focus.

• TasTAFE is a vibrant, sustainable organisation.

• An increase in all key business indicators over each year across the triple bottom line.

WHAT SUCCESS LOOKS LIKE

PURPOSE: TO PROVIDE VOCATIONAL EDUCATION, TRAINING SERVICES AND SOLUTIONS THAT ENSURES STUDENTS AND BUSINESSES HAVE THE SKILLS AND KNOWLEDGE THEY NEED TO OPTIMISE THEIR FUTURE OPPORTUNITIES.

STRATEGIC INTENT 2014-201718

KEY TARGET AREAS

EDUCATION and TRAINING PARTICIPATION to COMPLETION PEOPLE and CULTURE ENTERPRISE and SYSTEMS

OU

R FO

CU

S

STUDENTS

• An Education Blueprint is developed to maximise student outcomes.

• TasTAFE’s Virtual Learning Environment enables more students to have access to contemporary blended learning models.

• Products and services are regularly validated and reviewed.

• Student feedback is used for continuous improvement.

• A ‘future students’ focus is introduced to grow TasTAFE.

• TasTAFE’s Literacy and Numeracy strategy assists students to complete qualifications.

• Pathway Plans, including relevant support, are in place for each student.

• The delivery methodology uses a contemporary approach where the individual student is the focus.

• Staff capability around the ‘studentexperience’ is assessed against national averages for VET.

• A Teaching, Learning and Assessment Charter outlines our commitment to all students.

• Safety is a priority for all.

• Delivery of training in Tasmania is at the median of the national cost benchmark.

• Students are supported by relevant andeffective support systems.

• VET FEE-HELP courses are available to eligible students.

• Student completion rates and qualification outcomes are monitored.

• TasTAFE’s eBusiness strategy increases access to training.

• Graduates who have the skills, knowledge and attitude to develop their careers.

• Students who are active ambassadors for TasTAFE.

• TasTAFE is viewed as a competitive,cost-effective VET provider.

EMPLOYERS

• Student, graduate and employer surveys are conducted annually.

• Employer feedback is used for continuous improvement.

• Work placement is built into pre-employment programs.

• Employers are provided with regularupdates on what courses are offered andwhen.

• Education and training programs are tailored to suit employer needs.

• Staff are connected with employers ofexisting students.

• TasTAFE ensures employer expectations are met through a systemic approach.

• TasTAFE’s delivery teams work with employers to ensure industry validation occurs.

• Students are acknowledged by employers as being ‘work ready’.

• TasTAFE is the first choice for up-skilling existing workers.

INDUSTRY and COMMUNITY

• Industry advisory arrangements are in place and valued.

• Products and services are validated against industry standards.

• Community feedback provides continuous improvement.

• Community-based projects are supported and encouraged.

• TasTAFE actively engages with peak industry bodies and associations.

• A Rural and Remote strategy improves access to all Tasmanians to TasTAFE products and services.

• Community-based facilities, including LINC Tasmania sites, form part of our delivery service.

• Staff are connected with industryassociations and actively seek industry advice.

• The TasTAFE workforce profile aligns with industry and community needs.

• Teaching staff actively maintain vocationalcompetence and currency.

• Available subsidies are used to support isolated communities.

• Utilisation rates of TasTAFE facilities improve with increased third party access.

• Industry members recognise TasTAFE graduates as contributing to their productivity improvements.


PARTNERS

• Partnerships are established on the basis of mutual benefit.

• Purposeful pathways are developed with compulsory education and tertiary sector providers.

• Partnerships are established that focus upon increased access to VET programs.

• The Department of Education and University of Tasmania are key partners with the broader Tasmanian education system.

• The value of volunteers is recognised to support appropriate activities.

• Community engagement activities are valued and encouraged.

• Staff draw on TasTAFE’s values andbehaviours to optimise mutually beneficial partnerships.

• A Strategic Asset Management System will be developed with the Department of Education.

• A best practice approach to contract management is in place.

• A partnership enterprise model enhances student outcomes.

• TasTAFE has mutually beneficial partnerships with a range of organisations.

• TasTAFE manages partnerships using appropriate agreement protocols.

• Highly valued VET products and services. • All delivery teams work in accordance

within the national VET regulatory framework.

• Increased student participation and completion rates.

• A strong network of online and campus-based access points across Tasmania.

• Adoption of an ‘enterprise’ approach to student learning.

• All staff contribute poitively to thestudent experience.

• TasTAFE meets and exceeds the COMPLETIONCAT national averages.

• Staff surveys indicate a very highsatisfaction rate.

• The organisational culture is positive and promotes safety and a customer focus.

• TasTAFE is a vibrant, sustainable organisation.

• An increase in all key business indicators over each year across the triple bottom line.

WHAT SUCCESS LOOKS LIKE

VISION: TASTAFE ENABLES TASMANIANS TO GAIN THE SKILLS AND QUALIFICATIONS NEEDED FOR THE STATE’S WORKFORCE AND THE COMMUNITY TO SUCCEED AND PROSPER.

19

TasTAFE’s Risk Management Strategy is based on a model that establishes:

• risk as ‘the effect of uncertainty on objectives’

• underlying principles for Risk Management in TasTAFE

• a framework that recognises risk management as an active process requiring cycles of action, monitoring, review and continuous improvement

• a cyclical risk management process that identifies individual risk, assesses those risks, responds to those risks and monitors its progress in relation to those risks.

The framework includes a set of high level strategic risks. Of these, a number are addressed through major dedicated management strategies, in particular:

• TasTAFE’s Quality Management Framework – to mitigate risks associated with standards and quality

• TasTAFESAFE – to mitigate risks associated with work health and safety

• TasTAFE’s Corporate Plan – to mitigate risks associated

with strategic and operational directions.

In support of the framework, the TasTAFE Board operates two committees, each of which strengthen the governance and management of risk within TasTAFE:

• The TasTAFE Audit and Risk Management Committee monitors financial activities, financial controls and the conduct and responses to internal and external audit functions, with a view to building effective controls over financial and operational risks within TasTAFE

• The TasTAFE Work, Health and Safety Committee monitors functions and activities associated with the maintenance of a healthy and safe workforce and workplace/s.

This overall framework, along with our internal control systems, enables the Board, Executive, management and staff to understand, recognise and manage significant risk exposures.

The TasTAFE risk management framework is consistent with the AS/NZS 31000:2009 risk management standard.

This risk management framework, along with our internal control systems, enables the Board, Executive, management and staff to understand, recognise and manage significant risk exposures.

Risk management

RISK MANAGEMENT20

ORGANISATION STRUCTURE

GENERAL MANAGEROPERATIONS, ORGANISATION AND BUSINESS DEVELOPMENT

General ManagerVET

General ManagerVET

General ManagerVET

Drysdale

Business and ICT

Creative Industries

Strategic Partnerships and Business Development

Primary Industries and Engineering

Metal Trades and Automotive

Construction, Allied Trades and Electrotechnology

Health, Aged Care and Disability

Foundation Studies

Community, Childrens’ Services and Education Support

Strategic Partnerships and Business Development

Professional Learning and Development

Marketing and Communications

Quality Management and Compliance

Student Support and Development

Aboriginal Training Programs

CHIEF FINANCIAL OFFICER

Office of the CEO

People, Culture and Safety

Executive Services, Corporate Strategy and Governance

Finance and Resources

Business and Performance

Training Contracts

Student Systems and Infomation

Client Services

CEO

BOARD

21

KEY TARGET AREAS

What success looks like:

• highly valued, competitive and cost effective VET products and services

• all delivery teams operating in alignment with TasTAFE’s Quality Management System

• graduates who have the skills, knowledge and attitude to develop their career

• students who are active ambassadors for TasTAFE

• TasTAFE is a highly valued community asset.

PERFORMANCE AND INITIATIVES

STUDENT AND EMPLOYER SATISFACTION

Through independent annual surveys TasTAFE seeks to maintain an understanding of the level of satisfaction that students and employers report in relation to TasTAFE’s services.

The 2015 survey, which reports on the 2014 delivery year, has revealed an overall student satisfaction rate of 84% which is approaching TasTAFE’s target of exceeding 85%.

The overall satisfaction of employers has not yet reached this level, with the overall rating being 76%.

PROGRESS ON TASTAFE’S EDUCATION BLUEPRINT

TasTAFE recognises that in order for the organisation to contribute effectively to the economic and social prosperity of Tasmania it needs to have a long term plan. To support a shift in focus from TasTAFE’s traditional strengths to capabilities associated with new and emerging industries, the Education Blueprint will align with the Government’s economic agendas.

TasTAFE’s Education Blueprint has been the focus of significant effort in 2014-15. This has revealed the magnitude of the task and has seen the timeframe for the finalisation of the Blueprint extended to July 2016 to allow sufficient time for consultation.

TEACHING AND LEARNING QUALITY

The redesign of TasTAFE during 2014-15 included a decision to move from an external compliance focus on quality to a model through which quality assurance is imbedded in the capabilities of individual teams.

Team accountability for both TasTAFE’s quality standards and ASQA industry standards have been heightened through this strategy.

RELEVANCE OF TRAINING

In November 2014, TasTAFE Drysdale’s Tourism and Hospitality Event Management courses won the Best Achievement category at the Australian Event Awards. The Australian Event Award judges were impressed by Drysdale’s strong links with industry.

Like all TasTAFE courses, Drysdale’s Tourism and Hospitality courses have a strong practical component. Drysdale’s partnerships with industry provide students with amazing opportunities through work experience, volunteering, internships, an industry reference group and the opportunity to organise the Tasmanian Event Exchange. Students also undertake internships with The Wooden Boat Festival, the Hobart City Council (Taste of Tasmania), Ten Days on the Island and a number of other organisations/events.

The judges made particular mention of Drysdale’s strong partnerships with the Museum of Old and New Art (MONA). Diploma of Events students were seconded to work at a number of Dark Mofo festival events, assisting with both preparation and the events themselves. The work forms part of the students’ course assessment and allows them to put what they have learned in the classroom into practice at a professional, large scale event.

Goal: Our education and training activities are focused on the best outcomes for students, employers, industry and the community.

1: Education and Training

22

KEY TARGET AREAS


• increased student participation rates

• increased student completion rates

• a strong network of online, campus-based and work-based training options

• TasTAFEisthefirstchoicefor up-skilling existing workers and contributes to employer productivity improvements

• diverse and mutually beneficialpartnershipsareinplace.


PARTICIPATION AND COMPLETION

TasTAFE’s performance over the period of 2014-15 has been impacted by a range of influences:

• The impact of the 2014-15 State Government Budget savings agendas on TasTAFE’s purchasing agreement with the Government (the Deed)

• A heightened focus on the delivery of Deed-funded training

• Collaboration with Government through which TasTAFE has succeeded in offering increasing numbers of Deed-funded shorter industry-endorsed skill sets, sometimes at the expense of full qualifications

• A significant decline in other Government funding for training outside the scope of TasTAFE’s Deed.

The table below summarises the range of outcomes that these factors have contributed to.

DEVELOPMENT OF DIVERSE TRAINING DELIVERY MODELS

TasTAFE continues to diversify its delivery models, offering training that is delivered on the job, off the job, in the classroom, online, by mixed delivery, and by day release and block release for apprentices.

Increasingly, technology is supporting students to access these delivery models or to engage with our virtual learning environment (VLE). The VLE comprises a digital library of learning resources, a

Goal: TasTAFE systems, facilities and staff enable and support students to participate in training that benefits individuals, industry, employers and community through to completion.

2 : Participation to Completion

Deed Funded Training Other Training

June 2014 June 2015 Change June 2014 June 2015 Change

Students 9,469 9,806 +3.6% 10,582 8,711 -17.7%

Enrolments 11,654 12,404 +6.4% 11,858 9,969 -16.0%

Activity – Hours 3,466,897 3,327,422 -4.0% 2,159,098 1,423,539 -34.0%

Unit Completion Rate 81.2% 81.1% -0.1% 88.0% 90.2% +2.2%

Qualifications Completed 11,193 11,170 -0.2% 9,513 7,416 -22.0%

Other Accredited Outcomes

461 1,234 +268% 1,339 1,527 +14.0%

23

KEY TARGET AREAS

Learning Management System that connects students to those resources and a communication tool similar to Skype that can be used for desktop sharing and video calls.

More students are now also able to use smartphones and tablets to support their learning and gather evidence of skills already acquired – often in the student’s workplace when they are undertaking real-life tasks.

This sort of technology is already available to Electrotechnology, Metals and Engineering students and will also be implemented in Automotive, Construction and Primary Industries.

STRATEGIC PARTNERSHIPS

The success of TasTAFE is not only reliant on its own capacity to deliver training but also on the extent and quality of partnerships that we maintain with industries and organisations. Through such relationships TasTAFE maintains the currency and relevance of its delivery to the Tasmanian economy.

The types of partnerships range from memoranda with other important players in education and training in Tasmania, such as the University of Tasmania, to commercial contracts with individual businesses.

Many partnerships arise through joint bids with industry partners for contestable funds administered by the Tasmanian and Federal Governments.

Relationships exist across most delivery areas – including partnerships in the agricultural sector with the Van Diemen’s Land Company and Primary Employers Tasmania. Similarly, TasTAFE has training partnerships with industry bodies such as Aged and Community Services Tasmania (ACST), other Government-funded organisations such as 26TEN, and businesses such as Stubbs Construction.

In addition to these contractual partnerships, TasTAFE also has many less formal but equally valuable partnerships that have been established to:

• address a particular social or community agenda for students

• ensure that training matches industry expectations

• maintain the relevance of staff skills through opportunities to operate in local workplaces.

Examples include the following:

• Establishment of a Tour Guiding Enterprise Reference Group to ensure links between TasTAFE’s delivery and the sector’s changing needs.

• A partnership with Oak Community Services to enable trainees with a disability to access mentoring and workshops in settings that cater for their needs.

• Partnerships with the local hospitality sector to provide Drysdale hospitality students with opportunities to participate in high profile events such as Restaurant Australia and Dark MOFO.

Overall, in 2014-15 TasTAFE had:

• 72 active partnering arrangements through Government Funding Programs

• 45 active partnerships and agreements with businesses and organisations through other mechanisms.

24

NOTIFIABLE INCIDENTS

1 July 2013 – 30 June 2014: 1 July 2014 – 30 June 2015:

• Mild Electric Shock – student at Alanvale Campus (inserting memory stick into computer)

• Mild Electric Shock – student at Alanvale Campus (accidentally hit trigger of welder, class retrained in process)

• Mild Electric Shock – contractor at Alanvale Campus (isolating equipment for repair)

• Mild Electric Shock – student at Alanvale Campus (incorrect use of equipment, reinforced instructions)

• Vehicle accident – student at Hobart City Campus (occurred on public street, not on TasTAFE campus)

• Material containing Asbestos in skip bin – at Clarence Campus (investigation carried out)

• Mild Electric Shock – staff member at Launceston City Campus (unplugging data cord from old phone system)

• Severely cut finger – staff member at Clarence Campus (not adhering to correct standard operating procedures of the equipment)

KEY TARGET AREAS


• staff surveys indicate a very high satisfaction rate

• the organisational culture is positive and promotes customer focus and safety



ORGANISATIONAL REDESIGN

One of the most important initiatives undertaken during 2014-15 was the TasTAFE Redesign Project.

This project has been one of the underpinning strategies for the current Corporate Plan agenda and is focussed on maintaining TasTAFE as an organisation able to support Tasmanians to gain skills and qualifications needed for the state’s workforce and the community to succeed and prosper.

The redesign reached its most significant milestone at the end

of 2014-15 when the former structure was wound up and the new structure announced and implementation commenced.

STAFF SATISFACTION AND ENGAGEMENT

Throughout the redesign process management sought to maintain open communication as the agenda unfolded.

The critical achievements of reducing the number of delivery teams and the creation of a new Education Manager role were carefully negotiated with staff and through the relevant industrial unions and have established a strong foundation for the immediate future of TasTAFE.

WORK HEALTH AND SAFETY (WHS)

TasTAFE’s work health and safety management system, TasTAFESAFE has progressed significantly during 2014-15 and is establishing a clear framework for the management of WHS.

TasTAFE considers all workplace injuries to be preventable and strives to ensure that best practice WHS systems are integrated into

business area operations. This is vital in ensuring the health, safety and wellbeing of staff, students, contractors and visitors.

One of the major initiatives undertaken during the year was the implementation of a new hazard, incident and injury reporting system. This new approach was supported by training of all managers and has resulted in meaningful data being collected which can be analysed for trends as well as determining what preventative action can be taken.

Another major improvement in WHS was the introduction of a new WHS Committee model. The model was developed in consultation with employees to ensure that it provided adequate opportunity for employee involvement in the management of WHS in the workplace. Four new regional WHS Committees were established and elected representatives were nominated in addition to management representatives.

Hazard/Incident reports for the period 1 July 2014 – 30 June 2015

201

Personal Injury reports for the period 1 July 2014 – 30 June 2015

107

GOAL: TasTAFE’s people and organisational culture is positive and promotes safety and customer focus leading to best possible outcomes for staff, students, employers, industry and community.

3 : People and Culture

25

WORKERS (STAFF) COMPENSATION CLAIMS

1 July 2014 – 30 June 2015 1 July 2013 – 30 June 2014

Number of claims lodged 23 10

Number of claims with lost time 11 5

Average cost per claim $10,321 $19,895

Source: DoE Corporate Services HR Injury Management Unit Records

TOTAL STAFF TIME LOST DUE TO WORKERS COMPENSATION

1 July 2014 – 30 June 2015 1 July 2013 – 30 June 2014

10,003 hours 3,293 hours

Source: Corporate Services HR Records

What success looks like

• TasTAFE is a vibrant, sustainable organisation

• TasTAFE manages business partnerships with clients and other organisations.


FINANCIAL SUSTAINABILITY

During 2014-15 TasTAFE has continued to work both within TasTAFE and with our partners in Government to achieve greater financial stability for the organisation.

The TasTAFE Redesign Project has been an important part of that agenda, but has brought significant one-off costs associated with the separation of staff through a redundancy program as well as

costs associated with a project to acquire and implement a contemporary student management system.

Through its redesign, TasTAFE has addressed some of the savings needed in response to the reductions in Government funding both through the Deed and through contestable programs. Productivity improvements remain firmly on TasTAFE’s ongoing agendas.TasTAFE will take some of these challenges into 2015-16, but has made valuable progress during 2014-15.

BUSINESS PARTNERSHIP AGREEMENT WITH THE DEPARTMENT OF EDUCATION

TasTAFE continues to work on developing a sustainable shared services model with the Department of Education, building on the historical relationship around financial, human resource, facility and information technology

services, at the same time as boosting strategic and management capability within TasTAFE to ensure that TasTAFE exerts greater influence on these services into the future.

MANAGEMENT OF TASTAFE’S LAND AND BUILDINGS

TasTAFE has embarked on improving the way in which it uses the facilities that it controls across the state.

In Burnie, the activities that started the year spread across two campuses have been consolidated into a single campus.

During the year, other strategies around improved facility use were commenced and it is expected that during 2015-16 TasTAFE’s building footprint will continue to be reduced and better building utilisation strategies pursued.

GOAL: TasTAFE’s business model enables it to operate as a vibrant and sustainable organisation.

4 : Enterprise and Systems

KEY TARGET AREAS26

VOCATIONAL EDUCATION AND TRAINING STATISTICS

SUMMARY

Total Male Female

Hours 7,236,052 3,895,224 3,340,828

Students 28,841 17,337 11,504

Module enrolments 219,590 126,644 92,946

Qualification enrolments 38,572 22,675 15,897

Source: 2014 AVETMISS data collection

Vocational education and training statistics

27


STUDENT HOURS BY INDUSTRY GROUP

Industry Group Total % Male % Female % Accredited Training

% Non- Accredited

Training

%

Agriculture, Aquaculture, Food and Beverage

461,276 6.4% 319,915 69% 141,361 31% 461,276 100%

Arts 274,821 3.8% 115,117 42% 159,704 58% 274,821 100%

Automotive 240,233 3.3% 232,283 97% 7,950 3% 240,233 100%

Building and Construction

921,436 12.7% 849,756 92% 71,680 8% 919,333 100% 2,103 0.2%

Business and Financial Services

740,534 10.2% 317,740 43% 422,794 57% 740,534 100%

Energy Industries 245,886 3.4% 240,856 98% 5,030 2% 243,086 99% 2,800 1.1%

Engineering and Manufacturing

317,052 4.4% 308,852 97% 8,200 3% 317,052 100%

Environment Industries

42,413 0.6% 26,389 62% 16,024 38% 42,413 100%

Forestry, Timber and Paper

64,557 0.9% 61,783 96% 2,774 4% 62,854 97% 1,703 2.6%

General Education and Personal Development

884,568 12.2% 388,170 44% 496,398 56% 855,448 97% 29,120 3.3%

Generic 45,676 0.6% 31,395 69% 14,281 31% 44,948 98% 1.6%

Government Services (Incl Water Supply)

55,415 0.8% 29,400 53% 26,015 47% 55,415 100%

Hairdressing and Personal Development

191,941 2.7% 4,145 2% 187,796 98% 191,941 100%

Health and Community Services

1,344,509 18.6% 178,274 13% 1,166,235 87% 1,344,509 100%

Information Technology

390,600 5.4% 302,925 78% 87,675 22% 390,600 100%

Mining and Mineral Processing

63,416 0.9% 61,346 97% 2,070 3% 30,354 48% 33,062 52.1%

Other Manufacturing (Incl Furniture)

47,920 0.7% 42,079 88% 5,841 12% 47,920 100%

Printing 19,210 0.3% 7,750 40% 11,460 60% 19,210 100%

Retail and Wholesale Sales and Service

675 0.01% 675 100% 0 0% 675 100%

Sport and Recreation 71,785 1.0% 46,568 65% 25,217 35% 71,785 100%

Textiles, Clothing and Footwear

68,490 0.9% 6,100 9% 62,390 91% 68,490 100%

Tourism 598,440 8.3% 232,238 39% 366,202 61% 595,154 99% 3,286 0.5%

Transport Distribution and Storage

141,722 2.0% 90,142 64% 51,580 36% 141,410 100% 312 0.2%

Unspecified 3,477 0.05% 1,326 38% 2,151 62% 0 0% 3,477 100.0%

Total 7,236,052 100.0% 3,895,224 54% 3,340,828 46% 7,159,461 99% 76,591 1.1%


28


QUALIFICATION ENROLMENTS BY INDUSTRY GROUP

Industry Group Total % Male % Female % Accredited Training

% Non- Accredited

Training

%

Agriculture, Aquaculture, Food and Beverage

2,588 6.7% 1,996 77% 592 23% 2,588 100%

Arts 589 1.5% 232 39% 357 61% 589 100%

Automotive 1,270 3.3% 1,211 95% 59 5% 1,270 100%

Building and Construction

4,946 12.8% 4,644 94% 302 6% 4,797 97% 149 3%

Business and Financial Services

4,435 11.5% 1,863 42% 2,572 58% 4,435 100%

Energy Industries 1,207 3.1% 1,172 97% 35 3% 976 81% 231 19%

Engineering and Manufacturing

1,961 5.1% 1,912 98% 49 2% 1,961 100%

Environment Industries

158 0.4% 114 72% 44 28% 158 100%

Forestry, Timber and Paper

666 1.7% 617 93% 49 7% 567 85% 99 15%

General Education and Personal Development

4,792 12.4% 1,891 39% 2,901 61% 4,735 99% 57 1%

Generic 414 1.1% 269 65% 145 35% 360 87% 54 13%

Government Services (Incl Water Supply)

173 0.4% 91 53% 82 47% 173 100%

Hairdressing and Personal Development

635 1.6% 18 3% 617 97% 635 100%

Health and Community Services

5,362 13.9% 963 18% 4,399 82% 5,362 100%

Information Technology

1,504 3.9% 1,029 68% 475 32% 1,504 100%

Mining and Mineral Processing

1,316 3.4% 1,243 94% 73 6% 185 14% 1,131 86%

Other Manufacturing (Incl Furniture)

244 0.6% 231 95% 13 5% 244 100%

Printing 24 0.1% 10 42% 14 58% 24 100%

Retail and Wholesale Sales and Service

5 3.6% 5 100% 0% 5 100%

Sport and Recreation 1,404 0.4% 1,130 80% 274 20% 1,404 100%

Textiles, Clothing and Footwear

141 10.3% 10 7% 131 93% 141 100%

Tourism 3,975 1.6% 1,586 40% 2,389 60% 3,529 89% 446 11%

Transport Distribution and Storage

635 0.01% 402 63% 233 37% 619 97% 16 3%

Unspecified 128 0.3% 36 28% 92 72% 0 0% 128 100%

Total 38,572 100.0% 22,675 59% 15,897 41% 36,261 94% 2,311 6%


29


STUDENTS BY AGE GROUP AND GENDER

Age Grouping Total Male Female

15 and younger 947 503 444

16-19 6,020 3,816 2,204

20-24 4,922 3,232 1,690

25-29 2,957 1,814 1,143

30-34 2,525 1,514 1,011

35-39 6,988 1,327 947

40-44 2,512 1,378 1,134

45-49 3,383 1,202 1,000

50-54 2,028 1,149 879

55-59 1,355 775 580

60-64 704 411 293

65 and over 340 179 161

Unspecified 55 37 18

Total 28,841 17,337 11,504


INDIGENOUS ENROLMENTS BY GENDER

Indigenous Status Total % Male % Female %

Not Specified 227 0.6% 154 67.8% 73 32.2%

Aboriginal 1,608 4.2% 817 50.8% 791 49.2%

Torres Strait Islander 101 0.3% 61 60.4% 40 39.6%

Aboriginal and Torres Strait Islander

71 0.2% 32 45.1% 39 54.9%

Non Indigenous 36,565 94.8% 21,611 59.1% 14,954 40.9%

Total 38,572 100% 22,675 58.8% 15,897 41.2%


30


APPRENTICESHIP COMPARISON FIGURES

2015 2015 2014 2014

Industry Sector Commencements Active Commencements Active

Agriculture, Horticulture and CLM 211 333 248 299

Allied Trades 152 344 116 368

Automotive 139 395 178 389

Business Admin, Management and Library 67 92 43 105

Community, Children’s Services and Education Support

43 116 88 149

Construction 349 797 326 783

Electrical 160 468 194 494

Hair and Beauty 133 237 128 221

Health, Aged Care and Disability Services 111 173 185 209

Information Technology 23 27 19 20

Metal Trades 189 549 211 566

Mining 20 30 9 50

Tourism and Hospitality 332 504 310 512

Totals 1,929 4,065 2,055 4,165

Source: Skills Tasmania’s TrainingNET data “Active” data is provided for activity as at 30 June 2015. Commencement data represents total commencements for each financial year.

STATEWIDE DISTRIBUTION OF TASTAFE ENROLMENTS

Delivery Setting Total Male Female

TasTAFE – South 16,347 9,532 6,815

TasTAFE – North 8,973 4,853 4,120

TasTAFE – North West 9,658 6,092 3,566

DoE Schools and Trade Training Centres

1,382 775 607

Prison/Detention 292 227 65

Total 36,652 21,479 15,173


INTERNATIONAL QUALIFICATION ENROLMENTS BY LOCATION

Campus Offshore

Australian College, Kuwait 1,513

Bangde Vocational College, Shanghai 616

Genting-Star Tourism Academy, Manilla 137

Total 2,266


31

WORKFORCE STATISTICS AND HUMAN RESOURCE MANAGEMENT

PUBLIC SECTOR EMPLOYMENT AND CONDUCT PRINCIPLESTasTAFE’s employment policies and processes are based on the principle of merit, relevant award and statutory requirements, and best practice public sector approaches.

The Employment Policy undertakes a range of activities to support State Service workforce management. Provision of advice on employment policies and practices to the Government and State Service Agencies references the following legislation:

• State Service Act 2000

• State Service Regulations 2011

• State Service Code of Conduct

• State Service Principles

• Employment Directions.

EMPLOYMENT MATTERS• TasTAFE employees are employed

under the State Service Act 2000

• The CEO has a dual responsibility to a) the Board and b) to responsibilities required by the Training and Workforce Development Act 2013 and any other Act including the State Service Act 2000

• TasTAFE is an Agency under the State Service Act 2000

• The CEO is a Head of Agency under the State Service Act 2000

• The CEO is accountable to the Minister for Education and Training

• The Minister and Chair develop and administer a performance framework for the CEO.

INDUSTRIAL RELATIONSTasTAFE has regular consultative arrangements in place with major unions including the Australian Education Union (AEU), the Combined Public Services Union (CPSU) and United Voice.

TasTAFE also uses its Workforce Consultative Committee to ensure issues that may arise are addressed appropriately and in a timely manner.

There were no days lost due to industrial action in the 2014-2015 reporting period.

TasTAFE’s employment policies and processes are based on the principle of merit, relevant award and statutory requirements, and best practice public sector approaches.

Workforce statistics and human resource management

32

EMPLOYEE HEAD COUNT BY AGE GROUP AND GENDER

Age Female Male June 2014 total Female Male June 2015 total

15-24 5 (83%) 1 (17%) 6 (1%) 4 (80%) 1 (20%) 5 (1%)

25-34 35 (73%) 13 (27%) 48 (5%) 35 (81%) 8 (19%) 43 (5%)

35-44 102 (59%) 71 (41%) 173 (19%) 99 (60%) 67 (40%) 166 (20%)

45-54 196 (59%) 138 (41%) 334 (37%) 187 (59%) 128 (41%) 315 (37%)

55-64 163 (56%) 126 (44%) 289 (32%) 150 (56%) 117 (44%) 267 (31%)

65+ 21 (49%) 22 (51%) 43 (5%) 23 (48%) 25 (52%) 48 (6%)

Total 522 (58%) 371 (42%) 893 (100%) 498 (59%) 346 (41%) 844 (100%)

Source: DoE Corporate Services HR Records

EMPLOYEE FTE BY AGE GROUP AND GENDER

Age Female Male June 2015 total

15-24 2.87 (91%) 0.30 (9%) 3.17 (1%)

25-34 25.01 (79%) 6.70 (21%) 31.71 (4%)

35-44 72.39 (55%) 60.21 (45%) 132.60 (19%)

45-54 154.96 (57%) 118.92 (43%) 273.88 (38%)

55-64 125.17 (54%) 108.21 (46%) 233.38 (33%)

65+ 16.97 (48%) 18.42 (52%) 35.39 (5%)

Total 397.37 (56%) 312.76 (44%) 710.13 (100%)



Males make up 41% and females make up 59% of

the total workforce.

The largest single age cohort in all employment streams is the 45-54 age group, representing 37% of the total workforce.

The average age of the total workforce is 50.89, which is lower than the TasTAFE teaching workforce average of 51.60.

The 55-64 cohort represents 31% of the total workforce, and

the 35-44 cohort represents 20% of the total workforce.

45-54 55-64

35-44

males

females

33


EMPLOYEE HEAD COUNT BY AGE GROUP AND STREAM

(June 2015) 15-24 25-34 35-44 45-54 55-64 65+ Total

Allied Health Professional 0 0 0 0 0 0 0

Education Facility Attendant 0 0 0 1 1 2 4

Officers 0 0 0 1 4 0 5

Teaching Service 1 16 111 211 180 34 553

TSSA General 4 27 54 98 80 12 275

TSSA Professional 0 0 1 4 2 0 7

Total 5 43 166 315 267 48 844


EMPLOYEE FTE BY AGE GROUP AND STREAM

(June 2015) 15-24 25-34 35-44 45-54 55-64 65+ Total

Allied Health Professional 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Education Facility Attendant 0.00 0.00 0.00 1.00 1.00 2.00 4.00

Officers 0.00 0.00 0.00 1.00 4.00 0.00 5.00

Teaching Service 1.00 11.90 88.99 185.56 158.67 26.70 472.82

TSSA General 2.17 19.81 42.61 82.32 67.71 6.69 221.31

TSSA Professional 0.00 0.00 1.00 4.00 2.00 0.00 7.00

Total 3.17 31.71 132.60 273.88 233.38 35.39 710.13


34

83%of the

workforce is permanent

17%of the

workforce is fixed-term

63% of these are full time employees

31% of these are full time employees

WORKFORCE STATUS

EMPLOYEE HEAD COUNT BY STATUS AND FULL/PART TIME FOR GENDER

Female Male June 14 Female Male June 15

PermanentFull Time 227 (47%) 257 (53%) 484 207 (47%) 234 (53%) 441

Part Time 206 (75%) 68 (25%) 274 196 (76%) 63 (24%) 259

Permanent Total 433 (57%) 325 (43%) 758 403 (58%) 297 (42%) 700

Fixed-termFull Time 36 (63%) 21 (37%) 57 24 (56%) 19 (44%) 43

Part Time 52 (70%) 22 (30%) 74 70 (73%) 26 (27%) 96

Fixed-term Total 88 (67%) 43 (33%) 131 94 (68%) 45 (32%) 139

SES/HoA Contracts 1 (25%) 3 (75%) 4 1 (20%) 4 (80%) 5

Total 522 (58%) 371 (42%) 893 498 (59%) 346 (41%) 844


EMPLOYEE FTE BY STATUS AND FULL/PART TIME FOR GENDER

Female Male June 14 Female Male June 15

PermanentFull Time 226.40 (47%) 257.70 (53%) 484.10 206.76 (47%) 233.50 (53%) 440.26

Part Time 130.86 (75%) 44.33 (25%) 175.19 124.64 (75%) 41.76 (25%) 166.40

Permanent Total 357.26 (54%) 301.03 (46%) 658.29 331.40 (55%) 275.26 (45%) 606.66

Fixed-termFull Time 35.20 (63%) 20.30 (37%) 55.50 23.10 (55%) 19.00 (45%) 42.10

Part Time 34.03 (70%) 14.80 (30%) 48.83 41.87 (74%) 14.50 (26%) 56.37

Fixed-term Total 69.23 (66%) 35.10 (34%) 104.33 64.97 (66%) 33.50 (34%) 98.47

SES/HoA Contracts 1.00 (25%) 3.00 (75%) 4.00 1.00 (20%) 4.00 (80%) 5.00

Total 427.49 (56%) 339.13 (44%) 766.62 397.37 (56%) 312.76 (44%) 710.13


WORKFORCE STATISTICS AND HUMAN RESOURCE MANAGEMENT35


YEARS IN STATE SERVICE

Head Count FTE

Less than 1 20 13.27

1 to less than 3 58 44.12

3 to less than 5 54 39.91

5 to less than 10 266 215.60

10 to less than 15 165 142.34

15 to less than 20 117 101.46

20 and over 164 153.43

(as at 30 June 2015) 844 710.13


EMPLOYEES BY REGION

Head Count FTE

North 234 198.38

North West 196 163.86

South 414 347.89

844 710.13


EMPLOYEE SEPARATIONS

Category Reason Head Count FTE

Fixed Term

End of Temporary Appointment

4 3.00

Resignation 7 4.78

Permanent

Deceased 1 1.00

Redundancy 8 8.00

Resignation 9 7.40

Retirement 26 22.65

WRIP 29 23.50

Total 84 70.33


36

TasTAFE considers all workplace injuries to be preventable and strives to ensure that best practice WHS systems are integrated into business area operations. This is vital in ensuring the health, safety and wellbeing of staff, students, contractors and visitors.

TasTAFE’s health and safety strategy aims to meet its statutory and employee duty of care obligations and to create a harmonious, productive learning and working environment by providing a workplace free from risks to health and safety.

NOTIFIABLE INCIDENTS

Two notifiable incidents occurred for the period 1 July 2014 – 30 June 2015:

• Mild Electric Shock – staff member at Launceston Campus (unplugging data cord from old phone system)

• Severely cut finger – staff member at Clarence Campus (not adhering to correct standard operating procedures of the equipment).

WORKERS COMPENSATION CLAIMS

Workers (staff) compensation claims for the period 1 July 2014 to 30 June 2015:

Number of claims lodged

23

Number of claims with lost time

11

Average cost per claim $10,321

Source: DoE Corporate Services HR Injury Management Unit Records

Total staff time lost due to Workers Compensation for the period 1 July 2014 to 30 June 2015 was 10,003 hours.

Source: Corporate Services HR Records

TasTAFE has the primary duty of care for ensuring that as far as is reasonably practicable, the health and safety of workers and all other persons at TasTAFE is not put at risk from TasTAFE work or activities carried out.

Work, health and safety

WORK, HEALTH AND SAFETY37

HEALTH AND WELLBEING INITIATIVES

During 2014-15 TasTAFE promoted a range of health and wellbeing initiatives to all staff, including:

• Health and Wellbeing Committee formed

• Health and Wellbeing staff intranet page created

• Corporate Health program with BUPA

• Global Corporate Challenge

• Seasonal influenza vaccinations

• Smoke-free workplace (statewide) introduced

• The Entertainment Book promotion (includes a vast range of discounts available at a number of gyms, sports stores and outdoor activities – the proceeds from the sale of the book were donated to the Cancer Council)

• The Employee Assistance Program promoted along with information sessions

• Manager and staff training for recognising and managing stress

• Health and Wellbeing articles included in regular CEO Update newsletters

• WorkSafe Tasmania Mindfulness at Work and other events

• Healthy at Work resources promotion (through a Corporate Services Agreement, TasTAFE staff have access to the Department of Education’s resources)

• Provided all staff with reusable 800ml water bottle (TasTAFE branded)

• WorkSafe Tasmania’s Work Safe Month

• TasTAFE Work Health and Safety Week.

TASTAFESAFE WORK HEALTH AND SAFETY MANAGEMENT SYSTEM

TasTAFESAFE is a work health and safety management system being developed to provide TasTAFE’s Board, executive, management, employees, students, contractors, volunteers and visitors with a tool to manage and improve Work, Health and Safety. It aims to systematically control risk and ultimately lead to reduction in workplace injury, illness, environment and property/equipment damage/failure.

The TasTAFESAFE System is being developed in accordance with AS4801:2001 and describes how TasTAFE can and will implement AS4801:2001 across all of TasTAFE.

TasTAFESAFE is also compliant with the Work Health and Safety Act 2012, Work Health and Safety Regulations 2012, all relevant Codes of Practice and Australian Standards and the Worker’s Rehabilitation and Compensation Act 1988.

The system which is currently more than 65% complete commenced on 1 July 2014 and is an evolving system, which over time, will be reviewed and enhanced with additions/alterations made to the system to initiate and maintain a ‘continuous improvement’ focus which is set out in AS4801:2001.

An estimated completion time for the system is in the first quarter of 2016.

WORK, HEALTH AND SAFETY38

ENVIRONMENTAL SUSTAINABILITY

During 2014-15 TasTAFE commenced work on its Strategic Asset Management Plan which will include among its agendas the improvement of TasTAFE’s environmental sustainability practices.

Reducing TasTAFE’s operating footprint has commenced with the use of two facilities being discontinued in 2014-15 – TasTAFE’s Queenstown facility and the South Burnie facility.

TasTAFE’s vehicle fleet continues to be a key focus, both in reducing the number of vehicles and by increasing the efficiency of vehicles included in the fleet (see table below).

Through our business partnership with DoE the management of infrastructure and operations includes agendas to:

• use less energy

• reduce transport/travel related emissions

• reduce levels of office waste

• educate and engage staff, students and the broader community.

Under this partnership, the transition to environmentally sustainable practices within building management and maintenance continued within 2014-15.

Contracts administered by DoE ensures all TasTAFE assets have general, exit and emergency lighting replaced with low energy units.

TasTAFE also continues to manage waste contracts with an emphasis on ensuring cardboard products are separated from general waste to further support environmental sustainability.

TasTAFE remains committed to identifying sustainability practices and embedding these into our organisational operations and remains a member of Australian Campuses Towards Sustainability (ACTS).

A statewide group, TasTAFE Community of Practice for Sustainability, is exploring ways of embedding sustainable green practices within TasTAFE campuses and operations.

VEHICLE USAGE 2014-15

As at 30 June 2013 As at 30 June 2014 As at 30 June 2015

Number of vehicles 58 53 51

Fuel (litres) 114,820 104,891 97,571

Average CO2emissions (grams/kilometre) 205 200 189

TasTAFE acknowledges the need to maintain a focus on environmental sustainability.

Environmental sustainability

39

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

40

FINANCIAL AND COMPLIANCE INFORMATION

In the opinion of the directors of TasTAFE:

(a) the financial statements are drawn up so as to give a true and fair view of the results and cash flows for the year ended 30 June 2015 and the state of affairs of the Authority;

(b) the accounts have been made out in accordance with the provisions of the Training and Workforce Development Act 2013; and

(c) at the date of this statement there are reasonable grounds to believe that the Authority will be able to pay its debts as and when they fall due.

The financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and in accordance with Treasurer’s Instructions.

At the date of signing we are not aware of any circumstances, which would render the particulars included in the financial statements misleading or inaccurate.

Signed in accordance with a resolution of the directors:

…………………………………….. ……………………………………..

Nick Burrows Michelle Swallow Interim Chair Director

Dated: 10/8/2015 Dated: 10/8/2015

Statement of Certification

41

INDEPENDENT AUDITOR’S REPORT42

INDEPENDENT AUDITOR’S REPORT43

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2015

Notes 2015Budget

$’000

2015Actual

$’000

2014Actual

$’000

Continuing Operations

Revenue and other income from transactions

Grants/Deed of Purchasing Agreement 1.6(a), 4.1 80,473 79,022 77,995

Sales of goods and services 1.6(b)(c),4.2 27,505 29,486 36,021

Other revenue 1.6(f), 4.3 …. 1,141 898

Total revenue and other income from transactions 107,978 109,649 114,914

Expenses from transactions

Employee benefits 1.7(a), 5.1 75,218 71,460 77,312

Depreciation 1.7(b), 5.2 9,000 8,825 8,806

Supplies and consumables 1.7(c), 5.3 30,435 29,913 28,639

Finance costs 1.7 (d), 5.4 29 29 108

Grants/Concessions 1.7 (e), 5.5 …. 3,372 4,105

Other expenses 1.7(f), 5.6 …. 779 612

Total expenses from transactions 114,682 114,378 119,582

Net result from transactions (6,704) (4,729) (4,668)

Othereconomicflowsincludedinnetresult

Net gain/(loss) on non-financial assets 1.8(a), 6.1 …. (51,442) 2

Net gain/(loss) on financial instruments and statutory receivables/payables

1.8(b), 6.1 …. 314 (416)

Totalothereconomicflowsincludedinnetresult …. (51,128) (414)

Net result (6,704) (55,857) (5,082)

Other comprehensive income

Items that will not be reclassified subsequently to profit or loss

Changes in physical asset revaluation reserve 15,000 3,677 1,976

Other movements taken directly to equity …. …. 228,037

Total other comprehensive income 15,000 3,677 230,013

Comprehensive result 8,296 (52,180) 224,931

This Statement of Comprehensive Income should be read in conjunction with the accompanying notes.Budget information refers to original estimates and has not been subject to audit.Explanations of material variances between budget and actual outcomes are provided in Note 2 of the accompanying notes.

44

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015

Notes 2015Budget

$’000

2015Actual

$’000

2014Actual

$’000

Assets

Financial assets

Cash and deposits 1.9(a),11.1 3,550 7,429 5,261

Receivables 1.9(b), 7.1 3,317 2,807 3,490

Non-financial assets

Inventories 1.9(e), 7.2 381 226 216

Property, plant and equipment 1.9(d), 7.3 251,156 181,468 237,953

Intangible assets 1.9(f), 7.4 …. 1,372 ….

Other assets 1.9(g), 7.5 …. 1,355 1,896

Total assets 258,404 194,657 248,816

Liabilities

Payables 1.10(a), 8.1 1,506 2,118 1,643

Employee benefits 1.10(b), 8.2 16,395 18,768 19,625

Interest bearing liabilities 1.10(e),8.3 917 125 1,161

Other liabilities 1.10(d),8.4 …. 895 1,456

Total liabilities 18,818 21,906 23,885

Net assets 239,586 172,751 224,931

Equity

Contributed capital 10.1 229,608 228,037 228,037

Reserves 10.2 19,628 5,653 1,976

Accumulated funds/(deficit) (9,650) (60,939) (5,082)

Total equity 239,586 172,751 224,931

This Statement of Financial Position should be read in conjunction with the accompanying notes.Budget information refers to the Tasmanian Government’s original estimates and has not been subject to audit.Explanations of material variances between budget and actual outcomes are provided in Note 2 of the accompanying notes.

45

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2015

Notes 2015Budget

$’000

2015Actual

$’000

2014Actual

$’000

Cashflowsfromoperatingactivities

Cashinflows

Grants/Deed of Purchasing Agreement 80,473 78,830 80,640

Sales of goods and services 27,630 26,754 28,841

Interest received …. 201 126

GST receipts 5,754 4,464 3,802

Other cash receipts …. 939 714

Totalcashinflows 113,857 111,188 114,123

Cashoutflows

Employee benefits (75,531) (72,319) (74,385)

Interest payments (29) (29) (174)

GST payments (5,754) (3,803) (4,047)

Supplies and consumables (30,135) (29,612) (28,274)

Grants …. (835) (687)

Other cash payments …. (626) (612)

Totalcashoutflows (111,449) (107,224) (108,179)

Net cash from operating activities 11.2 2,408 3,964 5,944

Cashflowsfrominvestingactivities

Cashinflows

Capital grants …. 1,436 ….

Proceeds from sale of non-financial assets …. 7 2

Total cash inflows …. 1,443 2

Cashoutflows

Payments for acquisition of non-financial assets (2,500) (1,485) (15)

Totalcashoutflows (2,500) (1,485) (15)

Net cash (used by) investing activities (2,500) (42) (13)

Cashflowsfromfinancingactivities

Cashoutflows

Cash funds provided on restructuring …. …. 1,581

Repayment of borrowings (940) (1,036) (1,533)

Equity injections and cash flows from restructuring (718) (718) (718)

Totalcashoutflows (1,658) (1,754) (670)

Netcash(usedby)financingactivities (1,658) (1,754) (670)

Net increase (decrease) in cash and cash equivalents held (1,750) 2,168 5,261

Cash and deposits at the beginning of the reporting period 5,300 5,261 ….

Cash and deposits at the end of the reporting period 11.1 3,550 7,429 5,261 This Statement of Cash Flows should be read in conjunction with the accompanying notes.Budget information refers to the Tasmanian Government’s original estimates and has not been subject to audit.Explanations of material variances between budget and actual outcomes are provided in Note 2 of the accompanying notes.

46

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2015

Notes ContributedEquity$’000

Reserves

$’000

AccumulatedFunds/(Deficit)

$’000

TotalEquity$’000

Balance as at 1 July 2014 228,037 1,976 (5,082) 224,931

Net result …. …. (55,857) (55,857)

Changes in physical asset revaluation reserve 10.2 …. 3,677 …. 3,677

Total comprehensive result … 3,677 (55,857) (52,180)

Balance as at 30 June 2015 228,037 5,653 (60,939) 172,751

Notes ContributedEquity$’000

Reserves

$’000

AccumulatedFunds/(Deficit)

$’000

TotalEquity$’000

Balance as at 1 July 2013 …. …. …. ….

Net result …. …. (5,082) (5,082)

Net book value of assets and liabilities transferred from Department of Education

10.1 137,750 …. …. 137,750

Net book value of assets and liabilities transferred from the Tasmanian Skills Institute

10.1 90,287 …. …. 90,287

Changes in physical asset revaluation reserve 10.2 …. 1,976 …. 1,976

Total comprehensive result 228,037 1,976 (5,082) 224,931

Balance as at 30 June 2014 228,037 1,976 (5,082) 224,931

This Statement of Changes in Equity should be read in conjunction with the accompanying notes.

47

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Note Description Page No.

1 Significantaccountingpolicies

1.1 Objectives and funding ................................................................................................................................................................................... 50

1.2 Basis of accounting .......................................................................................................................................................................................... 50

1.3 Functional and presentation currency ........................................................................................................................................................ 50

1.4 Changes in accounting policies ..................................................................................................................................................................... 50

1.5 Transactions by the Government as owner – restructuring of Administrative Arrangements ...................................................... 51

1.6 Income from transactions .............................................................................................................................................................................. 51

1.7 Expenses from transactions .......................................................................................................................................................................... 52

1.8 Other economic flows included in net result ........................................................................................................................................... 52

1.9 Assets ................................................................................................................................................................................................................. 52

1.10 Liabilities ............................................................................................................................................................................................................ 53

1.11 Leases ................................................................................................................................................................................................................. 54

1.12 Unrecognised financial instruments ............................................................................................................................................................. 54

1.13 Significant accounting judgements and assumptions ................................................................................................................................ 54

1.14 Foreign currency .............................................................................................................................................................................................. 54

1.15 Comparative figures ........................................................................................................................................................................................ 54

1.16 Budget information .......................................................................................................................................................................................... 54

1.17 Rounding ............................................................................................................................................................................................................ 54

1.18 Taxation.............................................................................................................................................................................................................. 54

1.19 Goods and services tax .................................................................................................................................................................................. 54

2 Explanations of material variances between budget and actual outcomes

2.1 Statement of Comprehensive Income ........................................................................................................................................................ 55

2.2 Statement of Financial Position ..................................................................................................................................................................... 55

2.3 Statement of Cash Flows ............................................................................................................................................................................... 56

3 Events occurring after balance date ............................................................................................................................56

4 Income from transactions

4.1 Grants ............................................................................................................................................................................................................... 56

4.2 Sales of goods and services ........................................................................................................................................................................... 56

4.3 Other revenue ................................................................................................................................................................................................. 56

5 Expenses from transactions

5.1 Employee benefits ............................................................................................................................................................................................ 57

5.2 Depreciation ..................................................................................................................................................................................................... 60

5.3 Supplies and consumables .............................................................................................................................................................................. 60

5.4 Finance costs ..................................................................................................................................................................................................... 60

5.5 Grants/Concessions ........................................................................................................................................................................................ 60

5.6 Other expenses ............................................................................................................................................................................................... 60

6 Othereconomicflowsincludedinnetresult

6.1 Net gain/(loss) on non-financial assets ....................................................................................................................................................... 61

48

Note Description Page No.

7 Assets

7.1 Receivables ........................................................................................................................................................................................................ 61

7.2 Inventories ......................................................................................................................................................................................................... 61

7.3 Property, plant, and equipment ..................................................................................................................................................................... 62

7.4 Intangible assets ............................................................................................................................................................................................... 65

7.5 Other assets ..................................................................................................................................................................................................... 65

8 Liabilities

8.1 Payables .............................................................................................................................................................................................................. 65

8.2 Employee benefits ............................................................................................................................................................................................ 65

8.3 Interest bearing liabilities ............................................................................................................................................................................... 66

8.4 Other liabilities ................................................................................................................................................................................................. 66

9 Commitments and contingencies

9.1 Schedule of commitments ............................................................................................................................................................................. 67

9.2 Contingent assets and liabilities ................................................................................................................................................................... 67

10 Equity

10.1 Contributed capital ......................................................................................................................................................................................... 68

10.2 Reserves............................................................................................................................................................................................................. 68

11 Cashflowreconciliation

11.1 Cash and deposits ............................................................................................................................................................................................ 69

11.2 Reconciliation of net result to net cash from operating activities ....................................................................................................... 69

12 Financial risks

12.1 Risk exposures ................................................................................................................................................................................................. 70

13 Financial Instruments

13.1 Categories of financial assets and liabilities ............................................................................................................................................... 71

13.2 Reclassification of financial assets ................................................................................................................................................................ 72

14 Underlying Net Operating Balance .............................................................................................................................72

15 Economic Dependencies ...............................................................................................................................................72

16 Related Party Transactions ...........................................................................................................................................72


NOTE 1: SIGNIFICANT ACCOUNTING POLICIES

1.1 OBJECTIVES AND FUNDING

TasTAFE is the public provider of post-compulsory vocational education and training for Tasmania.

TasTAFE operates under the auspices of its own legislative functions and powers and is governed by an independent Statutory Board who report to the Minister for Education and Training.

TasTAFE is a substantial provider of Vocational Education and Training (VET) services purchased by the Government through the Department of State Growth. The purchasing arrangement, governed by a Deed of Purchasing Agreement, assists TasTAFE in offering a broad range of products and services to individuals, industry sectors and enterprises.

TasTAFE services businesses located across Tasmania and to provide economic and social benefits through the provision of accredited, vocationally based qualifications and skills sets. Clients include people already engaged in the workforce, those preparing to enter the workforce and employers.

TasTAFE operates within the broader Tasmanian educational system, as a commercially autonomous organisation, that has a specific role to:

• engage with individuals who require support to gain vocational ready skills

• deliver vocational qualifications to individuals who wish to advance their career opportunities

• create a more rewarding and sustainable future for the community

• assist employers to lift the productivity of their workforces through skill development.

1.2 BASIS OF ACCOUNTING

The Financial Statements are a general purpose financial report and have been prepared in accordance with:

• Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board

• The Treasurer’s Instructions issued under the provisions of the Financial Management and Audit Act 1990.

The financial statements were authorised for issue by the Board of Directors on 10 August 2015.

Compliance with the Australian Accounting Standards (AAS) may not result in compliance with International Financial Reporting Standards (IFRS) as the AAS include requirements and options available to not-for-profit organisations that are inconsistent with IFRS.

TasTAFE is considered to be not-for-profit and has adopted some accounting policies under the AAS that do not comply with IFRS.

The Financial Statements have been prepared on an accrual basis and, except where stated, are in accordance with the historical cost convention.

The Financial Statements have been prepared on the basis that TasTAFE is a going concern. The continued existence of TasTAFE in its present form, undertaking its current activities, is dependent on Government policy and on continuing appropriations by Parliament for TasTAFE’ s administration and activities.

1.3 FUNCTIONAL AND PRESENTATION CURRENCY

The financial statements are presented in Australian dollars, which is TasTAFE’s functional currency.

1.4 CHANGES IN ACCOUNTING POLICIES

(a) Impact of new and revised Accounting Standards

In the current year, TasTAFE has adopted all of the new and revised Standards and interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for the current annual reporting period.

None of these changes result in a financial impact to the TasTAFE’s Financial Statements and instead only relate to immaterial changes in disclosure. The changes considered relevant to TasTAFE are summarised below:

• AASB 1055 Budgetary Reporting – The objective of this Standard is to specify budgetary disclosure requirements for the whole of government, General Government Sector (GGS) and

not-for-profit entities within the GGS of each government. Disclosures made in accordance with this Standard provide users with information relevant to assessing performance of an entity, including accountability for resources entrusted to it. There is no financial impact. Disclosures are provided in Note 2.

• 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments [operative dates: Part A Conceptual Framework – 20 December 2013; Part B Materiality – 1 January 2014; Part C Financial instruments – 1 January 2015] – The objective of this Standard is to make amendments to the Standards and Interpretations listed in the Appendix:

(a) as a consequence of the issue of Accounting Framework AASB CF 2013-1 Amendments to the Australian Conceptual Framework, and editorial corrections, as set out in Part A of this Standard

(b) to delete references to AASB 1031 Materiality in other Australian Accounting Standards, and to make editorial corrections, as set out in Part B of this Standard

(c) as a consequence of the issuance of IFRS 9 Financial Instruments – Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39 by the IASB in November 2013, as set out in Part C of this Standard.

TasTAFE has determined there is no financial impact.

(b) Impact of new and revised accounting standards yet to be applied

The following applicable Standards have been issued by the AASB and are yet to be applied. The changes considered relevant to TasTAFE are summarised below:

• AASB 15 Revenue from Contracts with Customers – The objective of this Standard is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, an uncertainty of revenue and cash flows arising from a contract with a customer. This Standard applies to annual reporting periods beginning on or after 1 January 2017. It is anticipated that there is no material financial impact.



• AASB 9 Financial Instruments – This Standard supersedes AASB 139 Financial Instruments: recognition and Measurement, introducing a number of changes to accounting treatments. The Standard was reissued in December 2014 and is available from 1 January 2018 for application by not-for-profit entities. It is anticipated that there will not be any material financial impact.

• AASB 2015-6 Amendments to Australian Accounting Standards – Extending Related Party Disclosures to not-for-profit public sector entities. The objective of this Standard is to extend the scope of AASB 124 Related Party Disclosures to include not-for profit public sector entities. This Standard also makes related amendments to AASB 10 Consolidated Financial Statements and AASB 1049 Whole of Government and General Government Sector Financial Reporting, and an editorial correction to AASB 124. This Standard applies to annual reporting periods beginning on or after 1 July 2016. It is anticipated that there will not be any material financial impact.

• 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation [AASB 116 & AASB 138] – The objective of this Standard is to make amendments to:

(a) AASB 11 Property, Plant and Equipment

(b) AASB 138 Intangible Assets

As a consequence of the issuance of International Financial Reporting Standard Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and IAS 38) by the International Accounting Standards Board in May 2014. TasTAFE has determined there is no material financial impact.

• 2010-7, 2014-7 and 2014-8 Amendments to Australian Accounting Standards arising from AASB 9 – The objective of these Standards is to make amendments to various standards as a consequence of the issuance of AASB Financial Instruments in December 2010. It is anticipated that there will not be any material financial impact.

• 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101

[AASB7, AASB 101, AASB 134 and AASB 1049] – The objective of this Standard is to make amendments to various standards (as noted) as a consequence of the issuance of International Financial Reporting Standard Disclosure Initiative (amendments to IAS 1) by the International Accounting Standards Board in December 2014, to make an editorial correction. It is anticipated that there will not be any material financial impact.

• 2015-3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality – The objective of this Standard is to effect the withdrawal of AASB 1031 Materiality and to delete references to AASB 1031 in the Australian Accounting Standards, as set out in paragraph 132 of this Standard. It is anticipated that there will not be any material financial impact.

1.5 TRANSACTIONS BY THE GOVERNMENT AS OWNER – RESTRUCTURING OF ADMINISTRATIVE ARRANGEMENTS

Net assets received under a restructuring of administrative arrangements are designated as contributions by owners and adjusted directly against equity. Net assets relinquished are designated as distributions to owners. Net assets transferred are initially recognised at the amounts at which they were recognised by the transferring agency immediately prior to the transfer.

The Tasmanian Polytechnic transferred from the Department of Education amalgamating with the Tasmanian Skills Institute to create TasTAFE as at 1 July 2013. Details of these transactions are provided in Note 10.1.

1.6 INCOME FROM TRANSACTIONS

Income is recognised in the Statement of Comprehensive Income when an increase in future economic benefits related to an increase in an asset or a decrease of a liability has arisen that can be measured reliably.

a) Grants from Tasmanian Government

Grants payable by the Tasmanian Government are recognised as revenue when TasTAFE gains control of the underlying assets.

b) Funds from Commonwealth Government

Funds payable by the Australian Government are recognised as revenue when TasTAFE gains control of the underlying assets.

c) Sales of goods and services

Amounts earned in exchange for the provision of goods are recognised when the significant risks and rewards of ownership have been transferred to the buyer. Revenue from the provision of services is recognised in the proportion to the stage of completion of the transactions at the reporting date. The stage of completion is assessed by reference to surveys of work performed.

d) Interest

Interest on funds invested is recognised as it accrues using the effective interest rate method.

e) Contributions Received

Services received free of charge by TasTAFE are recognised as revenue when a fair value can be reliably determined and at the time the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised at their fair value when TasTAFE obtains control of the asset, it is probable that future economic benefits comprising the contribution will flow to TasTAFE and the amount can be measured reliably. However, where the contribution received is from a government agency as a consequence of restructuring of administrative arrangements, they are recognised as contributions by owners directly within equity. In these circumstances, book values from the transferor agency have been used.

f) Other revenue

Revenue from other sources, is recognised as revenue when TasTAFE obtains control over the assets comprising the contributions. Control is normally obtained upon their receipt.

51

1.7 EXPENSES FROM TRANSACTIONS

Expenses are recognised in the Statement of Comprehensive Income when a decrease in future economic benefit related to a decrease in asset or an increase of a liability has arisen that can be measured reliably.

a) Employee benefits

Employee benefits include, where applicable, entitlements to wages and salaries, annual leave, sick leave, long service leave, superannuation and other post-employment benefits.

b) Depreciation and amortisation

All applicable non-financial assets having a limited useful life are systematically depreciated over their useful lives in a manner which reflects the consumption of their service potential. Land, being an asset with an unlimited useful life, is not depreciated. Heritage assets are also not depreciated as their value does not diminish.

Depreciation is provided for on a straight-line basis, using rates which are reviewed annually. Major depreciation asset categories and their useful lives are:

Plant and equipment 3 – 20 years

Buildings 30 – 75 years

Sundry structures 5 – 30 years

Infrastructure 80 years

Library book stock 10 – 25 years

c) Supplies and consumables

Supplies and consumables are recognised when the items have been received by TasTAFE.

d) Finance costs

All finance costs are expensed as incurred using the effective interest method. Borrowing costs include interest on bank overdrafts and short term and long term borrowings.

e) Grants/concessions

Grants and subsidies expenditure is recognised to the extent that:

• the services required to be performed by the grantee have been performed; or

• the grant/concessional eligibility criteria have been satisfied.

A liability is recorded when TasTAFE has a binding agreement to make the grants but services have not been performed or criteria satisfied. Where grant monies are paid in advance of performance or eligibility, a prepayment is recognised.

f) Other expenses

Other expenses are recognised when the associated service or supply has been provided.

1.8 OTHER ECONOMIC FLOWS INCLUDED IN NET RESULT

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

a) Gain/(loss) on non-financial assets

Gains or losses from the sale of Non-financial assets are recognised when control of the assets has passed to the buyer.

Gain or losses on revaluation where there is not a sufficient reserve are recognised as an ‘other economic flow’ in the Statement of Comprehensive Income at the time of revaluation.

b) Impairment – financial assets

Financial assets are assessed at each reporting date to determine whether there is any objective evidence that there are any financial assets that are impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset.

An impairment loss, in respect of a financial asset measured at amortised cost, is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the original effective interest rate.

All impairment losses are recognised in the Statement of Comprehensive Income.

An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised. For financial assets measured at amortised cost and available-

for-sale financial assets that are debt securities, the reversal is recognised directly in equity.

c) Impairment – Non-financial assets

All non-financial assets are assessed to determine whether any impairment exists. Impairment exists when the recoverable amount of an asset is less than its carrying amount. Recoverable amount is the higher of fair value less costs to sell and value in use. TasTAFE’s assets are not used for the purpose of generating cash flows; therefore value in use is based on depreciated replacement cost where the asset would be replaced if the Institute were deprived of it.

All impairment losses are recognised in the Statement of Comprehensive Income unless a credit exists for the same class of asset in the asset revaluation reserve.

1.9 ASSETS

An asset is recognised in the Statement of Financial Position where it is probable that the future economic benefits flow to TasTAFE and the asset has a cost or a value that can be measured reliably.

a) Cash and deposits

Cash means notes, coins and deposits held at call with a bank or financial institution, for TasTAFE. Deposits are recognised at amortised cost being their face value.

b) Receivables

Receivables are recognised at amortised cost, less any impairment losses, however, due to the short settlement period, receivables are not discounted back to their present value.

c) Assets held for sale

Assets held for sale (or disposal groups compromising assets and liabilities) that are expected to be recovered primarily through sale rather than continuing use are classified as held for sale. Immediately before classification as held for sale, the assets (or components of a disposal group) are remeasured in accordance with TasTAFE’s accounting policies. Thereafter the assets (or disposal group) are measured at the lower of carrying amount and fair value less costs to sell. At 30 June 2015 there were no Assets held for sale.


d) Property, plant, and equipment

(i) Valuation basis

Land, buildings, infrastructure, and heritage assets and other long-lived assets are recorded at fair value less accumulated depreciation. All other non-current physical assets are recorded at historic cost less accumulated depreciation and accumulated impairment losses. All assets within a class of assets are measured on the same basis.

Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction. In determining fair value it is a requirement to have regard to the highest and best use of the asset. The key assumption is that the highest and best use of TasTAFE assets is their existing use.

Cost includes expenditure that is directly attributable to the acquisition of the asset. The costs of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

Land and buildings are re-valued with sufficient regularity to ensure they reflect fair value at balance date. See note 1.9(iv) for further detail.

(ii) Subsequent costs

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that future economic benefits embodied within the part will flow to TasTAFE and its costs can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.

(iii) Asset recognition threshold

The asset capitalisation threshold adopted by the TasTAFE is $10,000. Assets valued at less than $10,000 are charged to the Statement of Comprehensive Income in the year of purchase (other than where they form part of a group of similar items which are material in total).

(iv) Revaluations

Land, buildings and land under buildings have been revalued by an independent valuer as at 30 June 2015. The valuations were completed by the Valuer-General. This is the first independent valuation conducted of Land and Buildings since the establishment of TasTAFE on 1 July 2013.

The asset revaluations that are performed on a depreciated replacement cost basis are disclosed on a gross basis. Assets based on a market basis have been disclosed on a net basis.

The resulting changes to asset values have been adjusted to the Asset Revaluation Reserve or where there is not a sufficient reserve recognised as an ‘other economic flow’ in the Statement of Comprehensive Income.

Assets are grouped on the basis of having a similar nature or function in the operations of TasTAFE.

e) Inventories

Inventories are carried at the lower of cost and current replacement cost.

Costs are assigned to inventory quantities on hand and in store at balance date using the first in first out principle. No values have been placed on inventories issued to operating areas.

f) Intangibles

An intangible asset is recognised where it is probable that an expected future benefit attributable to the asset will flow to TasTAFE and the cost of the asset can be reliably measured.

Intangible assets held by TasTAFE are valued at fair value less any subsequent accumulated amortisation and any subsequent accumulated impairment losses where an active market exists. Where no active market exists, intangibles are valued at cost less any accumulated amortisation and any accumulated impairment losses.

g) Other assets

TasTAFE recognises some other small assets such as prepayments of expenditure.

1.10 LIABILITIES

Liabilities are recognised in the Statement of Financial Position when it is probable that an outflow of resources embodying economic benefits will result from the settlement of a present obligation and the amount at which the settlement will take place can be measured reliably.

a) Payables

Payables, including goods received and services incurred but not yet invoiced, are recognised at the amortised cost which due to the short settlement period, equates to face value, when TasTAFE becomes obliged to make future payments as a result of a purchase of assets or services.

b) Employee benefits

Liabilities for wages and salaries and annual leave are recognised when the employee becomes entitled to receive a benefit. Those liabilities expected to be realised within 12 months are measured as the amount expected to be paid. Other employee benefits are measured as the present value of the benefit at 30 June where the impact of discounting is material, and at the amount expected to be paid if discounting is not material.

A liability for long service leave is recognised, and is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date.

c) Superannuation

Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognised as an expense when they fall due.

Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.



TasTAFE does not recognise a liability for the accruing superannuation benefits of employees. This liability is held centrally and recognised within the Finance-General Division of the Department of Treasury and Finance.

d) Other liabilities

Other liabilities, includes revenue received in advance, where TasTAFE has received funds for which goods or services have not yet been provided or where specific conditions have not been met. The revenue will be recognised in the following financial year when the goods or services have been provided or when specific conditions have been met.

e) Loans

Loans are initially measured at fair value, net of transaction costs. Bank loans and other loans are subsequently measured at amortised cost using the effective interest rate method, with interest expense recognised on an effective yield basis.

The effective interest rate method is a method of calculating the amortised cost of a financial liability and allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate, a shorter period.

1.11 LEASES

TasTAFE has entered into a number of operating lease agreements for buildings and motor vehicles, where the lessors effectively retain all of the risks and benefits incidental to ownership of the items leased. Equal instalments of lease payments are charged to the Statement of Comprehensive Income over the lease term, as this is representative of the pattern of benefits to be derived from the leased property.

TasTAFE is prohibited under Treasurer’s Instruction 502 Leases from holding finance leases.

1.12 UNRECOGNISED FINANCIAL INSTRUMENTS

TasTAFE has no unrecognised financial instruments.

1.13 SIGNIFICANT ACCOUNTING JUDGEMENTS AND ASSUMPTIONS

In the application of Australian Accounting Standards, TasTAFE is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements made by TasTAFE that have significant effects on the Financial Statements are discussed below:

• Impairment (refer Notes 1.8(b),1.8(c), 12.1)

• Revaluation of Assets (refer Notes 1.8(b), 7.3)

• Employee Benefits (refer Notes 8.2).

TasTAFE has made no assumptions concerning the future that may cause a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

1.14 FOREIGN CURRENCY

Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Foreign currency receivables and payables are translated at the exchange rates current as at balance date.

1.15 COMPARATIVE FIGURES

The comparative figures have been adjusted to reflect any changes in accounting policy or the adoption of new standards.

Where amounts have been reclassified within the Financial Statements, the comparative statements have been restated.

1.16 BUDGET INFORMATION

Budget information refers to original estimates as disclosed in the 2014-15 Budget Papers and is not subject to audit.

1.17 ROUNDING

All amounts in the financial statements have been rounded to the nearest thousand dollars unless otherwise stated. Where the result of expressing amounts to the nearest thousand dollars would result in an amount of zero, the financial statement will contain a note expressing the amount to the nearest whole dollar. Due to rounding some figures may not exactly add to their total.

1.18 TAXATION

TasTAFE is exempt from all forms of taxation except Fringe Benefits Tax and the Goods and Services Tax (GST).

1.19 GOODS AND SERVICES TAX

Revenue, expenses and assets are recognised net of the amount of Goods and Services Tax, except where the GST incurred is not recoverable from the Australian Taxation Office.

Receivables and payables are stated inclusive of GST. The net amount recoverable, or payable, to the Australian Taxation Office is recognised as an asset or liability within the Statement of Financial Position.

In the Statement of Cash Flows, the GST component of cash flows arising from operating, investing or financing activities which is recoverable from, or payable to, the Australian Taxation Office is, in accordance with the Australian Accounting Standards, classified as operating cash flows.

54


NOTE 2: EXPLANATIONS OF MATERIAL VARIANCES BETWEEN BUDGET AND ACTUAL OUTCOMESThe following are brief explanations of material variances between budget estimates and actual outcomes. Variances are considered material where the variance exceeds 10 per cent of Budget estimate and $1million.

2.1 STATEMENT OF COMPREHENSIVE INCOME

Note Budget$’000

Actual$’000

Variance$’000

Variance%

Grants/concessions 1 …. 3,372 3,372 100

Net Gain/(loss) on non-financial assets 2 …. (51,442) (51,442) (100)

Changes in physical asset revaluation reserve 3 15,000 3,677 (11,323) (75)

Notes to Statement of Comprehensive Income variances

1 Concessions provided to students were netted off against revenue in the preparation of Budget Estimates.

2 TasTAFE revalued Buildings in line with Accounting Standards and this resulted in a write down which differed to CPI indications adopted at the time of preparing the Budget Estimates.

3 TasTAFE revalued Land in line with Accounting Standards and this resulted in an increase not as significant as CPI indications adopted at the time of preparing the Budget Estimates.

2.2 STATEMENT OF FINANCIAL POSITION

Budget Estimates for the 2014-15 Statement of Financial Position were compiled prior to the completion of the actual outcomes for 2014-15. As a result, the actual variance from the original Budget Estimate will be impacted by the difference between estimated and actual opening balances for 2014-15. The following variance analysis therefore includes major movements between the 30 June 2014 and 30 June 2015 actual balances.

Note Budget

$’000

2015 Actual

$’000

2014 Actual

$’000

Budget Variance

$’000

Actual Variance

$’000

Cash and deposits 1 3,550 7,429 5,261 3,879 2,168

Receivables 2 3,317 2,807 3,490 (510) (683)

Property, plant and equipment 3 251,156 181,468 237,953 (69,688) (56,485)

Intangible assets 4 …. 1,372 …. 1,372 1,372

Employee benefits 5 16,395 18,768 19,625 (2,373) 857

Reserves 6 19,628 5,653 1,976 (13,975) 3,677

Accumulated funds/(deficits) 7 (9,650) (60,939) (5,082) (51,289) (55,857)

Notes to Statement of Financial Position variances

1 TasTAFE’s improved cash position reflects the combined impact of improved cost containment, control initiatives, the timing of restructuring items and timing of expenditure on the new Student Management system.

2 Receivable collections were above anticipated levels and following an extensive review, receivables deemed uncollectable were provided for.

3 Revaluation of Land and Buildings resulted in significant differences to the indications adopted at the time of preparing the Budget Estimates.

4 The implementation of the Student Management System was included in Property, Plant and Equipment for Budget Estimate purposes.

5 It was expected the costs of the restructure would have been fully incurred and paid for by end of the current financial year.

6 This reflects the impact of the revaluation. At the time of preparation of Budget Estimates indications were there would be an increase.

7 This primarily reflects the impact of the final revaluations different outcomes to those prepared at Budget Estimates.

55

2.3 STATEMENT OF CASH FLOWS

Note Budget$’000

Actual$’000

Variance$’000

Variance%

GST receipts 1 5,754 4,464 (1,290) (22)

GST payments 1 (5,754) (3,803) 1,951 34

Payments for acquisition of-non financial assets 2 (2,500) (1,485) 1,015 41

Notes to Statement of Cash Flows variances

1. The GST receipts and payments vary due to changes in interpretation of revenue and expenditure processed via the Department of Education.

2. At the time of preparing the Budget Estimates it was believed more upfront cash flows were required for the implementation of the Student Management system.

NOTE 3: EVENTS OCCURRING AFTER BALANCE DATEThere have been no events subsequent to balance date which would have a material effect on the TasTAFE Financial Statements as at 30 June 2015.

NOTE 4: INCOME FROM TRANSACTIONS

4.1 GRANTS

2015$’000

2014$’000

Grants from the Tasmanian Government

Deed of Purchasing Agreement – Skills Tasmania 76,736 77,645

Grant – Student Management System 1,436 ….

Grant – Infrastructure not capitalised 850 350

Total 79,022 77,995

4.2 SALES OF GOODS AND SERVICES

Goods and Services

Training related sales 8,373 10,220

Australian Government contracts 9,063 12,863

State Government contracts 1,713 2,228

Overseas student fees 1,123 1,220

Course fees and charges 8,026 8,218

Other sales of goods and services 1,188 1,272

Total 29,486 36,021

4.3 OTHER REVENUE

Interest received 201 125

Workers compensation and other salary reimbursements 773 754

Miscellaneous recoveries 167 19

Total 1,141 898


NOTE 5: EXPENSES FROM TRANSACTIONS

5.1 EMPLOYEE BENEFITS

2015$’000

2014$’000

(a) Employee Expenses

Wages and salaries 55,989 62,336

Termination payments 2,022 183

Annual leave 1,661 1,587

Long service leave 2,303 3,758

Sick leave 1,845 1,613

Superannuation - defined contribution scheme 1,909 2,095

Superannuation - defined benefit scheme 5,731 5,740

Total 71,460 77,312

Superannuation expenses relating to defined benefits schemes relate to payments into the Consolidated Fund. The amount of the payment is based on an employer contribution rate determined by the Treasurer, on the advice of the State Actuary. The current employer contribution is 12.75 (2013/14: 12.5) per cent of salary.

Superannuation expenses relating to defined contribution schemes are paid directly to superannuation funds at a rate of 9.5 (2013/14: 9.25) per cent of salary. In addition, TasTAFE is also required to pay into the Consolidated Fund a “gap” payment equivalent to 3.25 per cent of salary in respect of employees who are members of contribution schemes.


(b) Remuneration of Key management personnel

Short-term benefits

Long-term benefits

2015

Salary$’000

OtherBenefits$’000

Superannuation$’000

Total$’000

Key management personnel

Chief Executive Officer, appointment date 1 July 2013 269 19 26 314

General Manager Operations, Organisation and Business Development, appointment date 1 July 2013

154 18 15 187

Executive Manager Finance and Resources, appointment date 10 October 2013

153 18 20 191

Total Remuneration for Key Management Personnel 576 55 61 692

Non-Executive Directors Remuneration Directors’ Fees

OtherBenefits Superannuation Total Directors’ Fees

Thomas, Kathryn M, Chairperson TasTAFE Board, appointment date 1 July 2013 and resigned 22 January 2015

31 0 3 34

Burrows, Nicholas J, Board Director, appointment date 1 July 2013

26 0 2 28

Burrows, Nicholas J, Interim Chair TasTAFE Board, appointment date 27 January 2015

7 0 1 8

Mucha, Christine S D, Board Director, appointment date 1 July 2013

26 0 2 28

Swallow, Michelle, Board Director, appointment date 1 July 2013

26 0 2 28

Gozzi, Robert K, Board Director, appointment date 1 July 2013

26 0 2 28

Smith, Neville R, Board Director, appointment date 1 July 2013

26 0 2 28

Brough, Michael, Board Director, appointment date 1 July 2013

26 0 2 28

Total Directors’ Remuneration 194 0 16 210

Aggregate Compensation for Key Management and Directors

770 55 77 902

Note: Other Benefits includes motor vehicles and car parking


Short-term benefits

Long-term benefits

2014

Salary$’000

OtherBenefits$’000

Superannuation $’000

Total$’000

Key management personnel

Chief Executive Officer, appointment date 1 July 2013 269 19 25 313

General Manager Operations, Organisation and Business Development, appointment date 1 July 2013

154 18 14 186

Executive Manager Finance and Resources, appointment date 10 October 2013 (only paid for 8½ months)

106 18 13 137

Total Remuneration for Key Management Personnel 529 55 52 636

Non-Executive Directors Remuneration Directors’ Fees

OtherBenefits Superannuation Total Directors’ Fees

Thomas, Kathryn M, Chairperson TasTAFE Board, appointment date 1 July 2013

43 0 4 47

Burrows, Nicholas J, Board Director, appointment date 1 July 2013

27 0 3 30

Mucha, Christine S D, Board Director, appointment date 1 July 2013

27 0 3 30

Swallow, Michelle, Board Director, appointment date 1 July 2013

27 0 3 30

Gozzi, Robert K, Board Director, appointment date 1 July 2013

27 0 3 30

Smith, Neville R, Board Director, appointment date 1 July 2013

27 0 3 30

Brough, Michael, Board Director, appointment date 1 July 2013

27 0 3 30

Total Directors’ Remuneration 205 0 22 271

Aggregate Compensation for Key Management and Directors

734 55 74 863

Note: Other Benefits includes motor vehicles and car parking


Key management personnel are those persons having authority and responsibility for planning directing and controlling the activities of the agency, directly or indirectly.

Remuneration during 2014-15 for key personnel is set by the State Service Act 2000. Remuneration and other terms of employment are specified in employment contracts. Remuneration includes salary, motor vehicle and other non-monetary

benefits. Long-term employee expenses include superannuation obligations and termination payments. Leave entitlement movements have not been included as they were immaterial.

TasTAFE Directors are entitled to be paid such remuneration and allowances as the Minister for Education and Training determines. The Department of Premier and Cabinet advised TasTAFE of the Directors’ entitlement.

Acting Arrangements

When members of key management personnel are unable to fulfil their duties, consideration is given to appointing other members of senior staff to their position during their period of absence. Individuals are considered members of key management personnel when acting arrangements are for more than a period of one month.

59


5.2 DEPRECIATION

2015$’000

2014$’000

Depreciation

Buildings 7,734 7,710

Plant and equipment 589 593

Library stock 502 503

Total 8,825 8,806

5.3 SUPPLIES AND CONSUMABLES

Audit fees – financial audit 59 45

Consultants 471 440

Property services including facility services reimbursement 10,866 10,333

Maintenance 1,928 1,152

Communications 447 819

Information technology 3,135 3,670

Travel and transport 1,388 1,710

Advertising and promotion 376 366

Materials and supplies 2,967 2,627

Postage and freight 153 170

Contractors 974 857

Copyright fees 252 149

Corporate services: Shared Services contribution* 5,115 4,986

Other supplies and consumables 1,782 1,315

Total 29,913 28,639

* These expenses represent the related costs of the provision of financial, human resource, facility, information communication technology and services by the Department of Education. Other reimbursements to the Department of Education of discrete costs incurred on behalf of TasTAFE have been allocated against the relevant category under Supplies and consumables. The costs are managed through a formal Business Partnership Agreement.

5.4 FINANCE COSTS

Interest 29 108

Total 29 108

5.5 GRANTS/CONCESSIONS

Grants – childcare subsidies 827 710

Concessions – student fees and charges 2,537 3,387

Subsidies 8 8

Total 3,372 4,105

5.6 OTHER EXPENSES

Salary on-costs – workers compensation premiums 779 612

Total 779 612

60


NOTE 6: OTHER ECONOMIC FLOWS INCLUDED IN NET RESULT

6.1 NET GAIN/(LOSS) ON NON-FINANCIAL ASSETS

2015$’000

2014$’000

Net Gain(loss) on disposal of physical assets (11) 2

Revaluation of non-current physical assets – buildings (51,431) ….

Net gain/(loss) on financial instruments and statutory receivables/payables 314 (416)

Totalnetgain/(loss)onnon-financialassets (51,128) (414)

NOTE 7: ASSETS

7.1 RECEIVABLES

Receivables 2,761 3,372

Less: Provision for impairment (284) (1,047)

Tax Assets - Net GST reimbursement 330 1,165

Total 2,807 3,490

Settled within 12 months 2,807 3,490

Total 2,807 3,490

Reconciliation of movement in provisions for impairment of receivables

Carrying amount at 1 July 1,047 ….

Amounts written off during the year (449) ….

Balance of provision transferred in …. 631

Increase/(decrease) in provision recognised in profit or loss (314) 416

Carrying amount at 30 June 284 1,047

7.2 INVENTORIES

Inventory 226 216

Total 226 216

Consumed within 12 months 226 216

Consumed in more than 12 months …. ….

Total 226 216

61

7.3 PROPERTY, PLANT AND EQUIPMENT

(a) Carrying amount

2015$’000

2014$’000

Land

At fair value 23,950 19,081

Total 23,950 19,081

Buildings

At fair value 315,582 375,787

Less: Accumulated depreciation (165,543) (165,391)

Total 150,039 210,396

Total Land and buildings 173,988 229,477

Plant, equipment and vehicles

At cost 8,761 8,667


Total 4,691 5,186

Library book stock

At cost 5,030 5,030


Total 2,767 3,269

Heritage

At fair value 21 21

Total 21 21

Total property, plant and equipment 181,468 237,953

TasTAFE undertook a valuation of land, buildings and land under buildings during 2014-15. The valuations were completed by the Office of the Valuer-General.

The valuation resulted in a significant decrease of $52.623 million in the value of assets in the category of Buildings. Of the decrease $51.431 million was recognised in the statement of comprehensive income as a loss on revaluation with the balance taken to the Asset Revaluation Reserve. The value

of land increased by $4.869 million as a result of the valuation, this was taken to the Asset Revaluation Reserve. The valuation of the Land and Building assets was completed in accordance with AASB 116 Plant and Equipment and AASB13 Fair Value Measurement. Three methods of valuation were adopted when valuing the land and building assets being depreciated replacement cost, a comparable sales approach and an income approach. Specialised building assets such as TasTAFE buildings are valued using a depreciated

replacement cost method because there are no comparable sale transactions. The majority of TasTAFE building assets are valued using depreciated replacement cost. The comparable sales approach was used to value market type assets such as vacant land. This approach considers market sales evidence that is comparable to the subject asset. The income approach was adopted for market type assets such as office buildings. This approach considers the rental earning capacity of the building to calculate the valuation.


(b) Reconciliation of movements (including fair value levels)

Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current and previous financial year are set out below. Carrying value means the net amount after deducting accumulated depreciation and accumulated impairment losses.

2015 LandLevel 2

LandLevel 3

(land with no active

markets and/orsignificantrestrictions)

BuildingsLevel 2

(general use/ residential buildings)

BuildingsLevel 3(specific

purpose/use buildings)

HeritageLevel 2

(items in an active market)

Plant and equipment

Library Book Stock

Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Carrying value at 1 July

…. 19,081 …. 210,396 21 5,186 3,269 237,953

Additions …. …. …. …. …. 113 …. 113

Disposals …. …. …. …. …. (19) …. (19)

Transfer out of Level 3 (to Level 2)

4,211 (4,211) 13,774 (13,774) …. …. …. ….

Gains/(losses) recognised in operating result

Revaluation decrements

…. …. (6,554) (44,877) …. …. …. (51,431)

Gains/(losses) recognised in other comprehensive income

Revaluation increments/(decrements)

1,289 3,580 …. (1,192) …. …. …. 3,677

Depreciation/amortisation expense

…. …. …. (7,734) …. (589) (502) (8,825)

Carrying value as at 30 June

5,500 18,450 7,220 142,819 21 4,691 2,767 181,468


(b) Reconciliation of movements (including fair value levels) continued

2014 LandLevel 3

(land with no active markets

and/orsignificantrestrictions)

BuildingsLevel 3

(specificpurpose/use buildings)

HeritageLevel 2

(items in an active market)

Plant and equipment

Library Book Stock

Total

$’000 $’000 $’000 $’000 $’000 $’000

Carrying value at 1 July

…. …. …. …. …. ….

Additions …. …. …. 15 …. 15

Disposals …. …. …. …. …. ….

Assets held for sale

…. …. …. …. …. ….

Revaluation increments

783 1,192 1 …. …. 1,976

Capitalised works to assets

…. …. …. …. …. ….

Net transfers 18,298 216,914 20 5,763 3,773 244,768

Depreciation/amortisation expense

…. (7,710) …. (592) (504) (8,806)

Carrying value as at 30 June

19,081 210,396 21 5,186 3,269 237,953

There have been no active movements between levels for 2014.

All of TasTAFE Land, buildings and structures are vocational educational training related and as such are classified as specialist assets with no active markets against which to be valued. As a result, the majority of assets are valued as Level 3 inputs.

(c) Level 3 significant valuation inputs and relationship to fair value

Description Fair value at 30 June

2015

Significantunobservable inputs used in valuation

Possible alternative values for level 3 inputs

Sensitivity of fair value to changes in level 3 inputs

$’000

Land – with no active markets and/or significant restrictions)

18,450 A – economic conditions B – availability of and demand for similar assets for sale

Note 1 Economic conditions have stabilised over the last 12 months with demand at subdued levels. Interest rates are at historical lows and are expected to remain at those levels. As a result, it is unlikely that significant variations in values will arise in the short term.

Buildings – specific purpose/use buildings

142,819 A – Construction costs B – Design life C – Age and condition of asset D – Remaining useful life

Note 1 Tasmanian construction indexes have remained stable over the last 12 months. Design and useful lives are reviewed regularly but generally remain unchanged. As a result, it is unlikely that significant variations in values will arise in the short term.

Note 1: When valuing these assets, their existing use and unlikely alternative uses, are taken into account by valuers. As a result, it is most unlikely that alternative values will arise unless there are more changes in known inputs.


7.4 INTANGIBLE ASSETS

2015$’000

2014$’000

Intangibleswithafiniteusefullife

Work in progress at cost: Student Management System 1,372 ….

Total 1,372 ….

7.5 OTHER ASSETS

(a) Carrying amount

Other current assets

Prepayments 66 5

Revenue earned but not received 1,271 1,841

Other 18 50

Total 1,355 1,896

Settled within 12 months 1,355 1,896

Total 1,355 1,896

NOTE 8: LIABILITIES

8.1 PAYABLES

Creditors and accrued expenses 2,118 1,643

Total 2,118 1,643

Settled within 12 months* 2,118 1,643

Settled in more than 12 months* …. ….

Total 2,118 1,643

*Settlement is usually made within 30 days, or within the suppliers’ terms of trade.

8.2 EMPLOYEE BENEFITS

Accrued salaries 2,404 2,289

Annual leave 2,827 3,352

Long service leave 12,471 13,883

Termination provision 991 ….

State service accumulated leave scheme 75 101

Total 18,768 19,625

Current 8,256 7,241

Non-current 10,512 12,384

Total 18,768 19,625


8.3 INTEREST BEARING LIABILITIES

2015$’000

2014$’000

Loan from Treasury 125 1,161

Total 125 1,161

Current 125 1,036

Non-current …. 125

Total 125 1,161

8.4 OTHER LIABILITIES

Reimbursement of Polytechnic deficit – Department of Education 718 1,437

Provision for workers compensation 153 ….

Bequests 24 19

Total 895 1,456

Current 766 718

Non-current 129 738

Total 895 1,456


NOTE 9: COMMITMENTS AND CONTINGENCIES

9.1 SCHEDULE OF COMMITMENTS

2015$’000

2014$’000

By type

Capital Commitments

Student Management System 1,115 ….

Total Capital Commitments 1,115 ….

Lease Commitments

Operating Leases 527 675

Total Operating Lease Commitments 527 675

By maturity

Capital Commitments

One year or less 767 ….

From one to five years 348 ….

Total Capital Commitments 1,115 ….

Operating Lease Commitments

One year or less 286 353

From one to five years 241 322

Over five years …. ….

Total Operating Lease Commitments 527 675

Total 1,642 675

NB: Commitments are GST inclusive where relevant.

The Capital commitment is for the outstanding contractual amount on the Capital component of the new Student Management System.

TasTAFE entered into operating lease arrangements for motor vehicles. At the reporting date, TasTAFE held no non-cancellable operating leases (these obligations are not recognised as liabilities).

9.2 CONTINGENT ASSETS AND LIABILITIES

There are no material contingent assets and liabilities recognised in the Statement of Financial Position.


NOTE 10: EQUITY

10.1 CONTRIBUTED CAPITAL

Following the enactment of the Training and Workforce Development Act 2013 TasTAFE assumed responsibility for both the Tasmanian Polytechnic (from the Department of Education) and the Tasmanian Skills Institute on 1 July 2013.

In respect of activities assumed, the net book values of assets and liabilities transferred to TasTAFE from the Department of Education and the Tasmanian Skills Institute at the date of transfer were:

2015Total

2014Tasmanian

Skills Institute

2014Department of Education

2014Total

$’000 $’000 $’000 $’000

Assets and liabilities assumed on restructure

Cash and deposits …. 1,037 544 1,581

Receivables …. 1,462 1,980 3,442

Property, plant and equipment …. 98,350 303,194 401,544

Accumulated depreciation …. (1,772) (158,798) (160,570)

Library book stock …. …. 5,030 5,030

Accumulated depreciation …. …. (1,257) (1,257)

Heritage collections …. …. 20 20

Other assets …. 224 496 720

Payables …. (572) (653) (1,225)

Employee benefits …. (5,748) (10,637) (16,385)

Interest bearing loans …. (2,694) …. (2,694)

Other liabilities …. …. (2,169) (2,169)

Total …. 90,287 137,750 228,037

10.2 RESERVES

Land$’000

Buildings$’000

Heritage$’000

Total$’000

2015

Asset Revaluation Reserve

Balance at the beginning of financial year 783 1,192 1 1,976

Revaluation increments (decrements) 4,869 (1,192) …. 3,677

Balanceatendoffinancialyear 5,652 …. 1 5,653

2014

Asset Revaluation Reserve

Balance at the beginning of financial year …. …. …. ….

Revaluation increments (decrements) 783 1,192 1 1,976

Balanceatendoffinancialyear 783 1,192 1 1,976


NOTE 11: CASH FLOW RECONCILIATION

11.1 CASH AND DEPOSITS

For the purpose of the Statement of Cash Flows and the Statement of Financial Position, cash included cash on hand and held in bank accounts.

The Department of Education provides the student management and cash receipting systems and services utilised by TasTAFE. Student fees collected on behalf of TasTAFE are credited to a central operating account and transferred on a regular basis to TasTAFE’ s own operating account.

Due to timing differences in the receipt and transfer of these fees, a portion of the cash in the central operating account is held on behalf of TasTAFE, and is considered a cash asset. The amount below represents the portion of the account that belongs to TasTAFE, not the total of the account.

Cash at the end of the year as shown in the Statement of Cash Flows and the Statement of Financial Position:

2015$’000

2014$’000

Cash held

TasTAFE Westpac operating accounts 7,412 5,242

Cash floats 17 19

Total cash and deposits 7,429 5,261

The definition of cash can be found at Note 1.9 (a).

11.2 RECONCILIATION OF NET RESULT TO NET CASH FROM OPERATING ACTIVITIES

2015$’000

2014$’000

Net result (55,857) (5,082)

Less impact of non-operational capital funding (1,436) ….

(Gain)/loss on revaluation of buildings 51,431 ….

(Gain)/loss on disposal of physical assets 11 2

Depreciation 8,825 8,806

Decrease/(increase) in receivables 683 (48)

Decrease/(increase) in other assets 551 (1,392)

Increase/(decrease) in employee benefits (857) 3,240

Increase/(decrease) in payables 475 418

Increase/(decrease) in other liabilities 138 ….

Net cash from operating activities 3,964 5,944


NOTE 12: FINANCIAL RISKS

12.1 RISK EXPOSURES

(a) Risk management policies

TasTAFE has exposure to the following risks from its use of financial instruments:

• credit risk

• liquidity risk

• market risk.

The Board has overall responsibility for the establishment and oversight of TasTAFE’’s risk management framework. Risk management policies are established to identify and analyse risks faced by TasTAFE, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.

(b) Credit risk exposures

Credit risk is the risk of financial loss to TasTAFE if a customer or counterparty to a financial instrument fails to meet its contractual obligations.

The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents TasTAFE’s maximum exposure to credit risk.

Student enrolment fees are due and payable within 30 days of enrolment. In certain circumstances, instalment payment plans may be negotiated for financially disadvantaged individuals.

TasTAFE has a debt management cycle which sees the analysis and investigation of all debts outstanding undertaken on a monthly basis. TasTAFE reviews all debts exceeding 3 months and writes off those considered uncollectible. TasTAFE credit risk is minimised to the extent that it has transactions with a large number of customers.

The following tables analyse financial assets that are past due but not impaired.

Analysisoffinancialassetsthatarepastdueat30June2015butnotimpaired

Due 0 – 30 days

$’000

Past due 31-60 days

$’000

Past due 61-90 days

$’000

Past due 91 days greater

$’000

Total

$’000

Receivables 1,289 462 228 828 2,807

Analysisoffinancialassetsthatarepastdueat30June2014butnotimpaired

Due 0 – 30 days

$’000

Past due 31-60 days

$’000

Past due 61-90 days

$’000

Past due 91 days greater

$’000

Total

$’000

Receivables 2,819 519 147 5 3,490

(c) Liquidity risk

Liquidity risk is the risk that TasTAFE will not be able to meet its financial obligations as they fall due. TasTAFE’s approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when they fall due.

TasTAFE operates within Australia and has minimal domestic debt.

TasTAFE analyses its liquidity requirements on a daily basis via reconciliation of its operating bank account and analysis of upcoming accounts payable transactions.

All payables declared within these financial statements are considered to be a current liability.

TasTAFE expects that all payables accrued as at 30 June 2015 will be paid within 30 days.


(d) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The primary market risk that TasTAFE is exposed to is interest rate risk.

TasTAFE currently has its financial assets in variable interest.

2015$’000

2014$’000

Variable rate instruments

Financial assets 7,429 5,261

Total 7,429 5,261

Changes in variable rates of 100 basis points at reporting date would have the following effect on TasTAFE’s profit or loss and equity.

The Interest bearing financial liability is at a fixed interest rate and as such offers no interest rate sensitivity exposure.

TasTAFE currently has its financial assets in variable interest rates and retains the interest earned on financial assets, and as such the interest rate sensitivity is as follows:

Statement of Comprehensive Income Equity

100 basis points increase

$’000

100 basis points decrease

$’000

100 basis points Increase

$’000

100 basis points decrease

$’000

30 June 2015

Financial assets 74 (74) 74 (74)

Net sensitivity 74 (74) 74 (74)

30 June 2014

Financial assets 53 (53) 53 (53)

Net sensitivity 53 (53) 53 (53)

This analysis assumes all other variables remain constant.

NOTE 13: FINANCIAL INSTRUMENTS

13.1 CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES

2015$’000

2014$’000

Financial assets

Cash and cash equivalents 7,429 5,261

Receivables 2,807 3,490

Total 10,236 8,751

Financial liabilities

Payables 2,118 1,643

Interest bearing loans 125 1,161

Polytechnic deficit 718 1,437

Total 2,961 4,241


13.1 CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES (CONTINUED)

Financial Assets

The net fair value of cash and cash equivalent assets is based on their carrying amount.

The net fair value of receivables is based on the carrying amount of the asset.

Financial Liabilities

The net fair value of payables is based on the carrying amount of the liability.

The net fair value of the interest bearing liability is based on the carrying amount of the liability.

The net fair value of the Polytechnic deficit is based on the carrying amount of the liability.

13.2 RECLASSIFICATIONS OF FINANCIAL ASSETS

TasTAFE has made no reclassifications of any financial assets held for the financial year.

NOTE 14: UNDERLYING NET OPERATING BALANCE Non-operational capital funding is the income from transactions relating to funding for capital projects. The funding is classified as income from transactions and included in the net operating balance. However, the corresponding capital expenditure is not included in the calculation of the net operating balance. Accordingly, the net operating balance will portray a position that is better than the true underlying financial result.

For this reason, the net operating result is adjusted to remove the effects of funding for capital projects.

2015$’000

2014$’000

Net result (55,857) (5,082)

Grant for Student Management system (1,436) ….

Underlying net operating balance (57,293) (5,082)

NOTE 15: ECONOMIC DEPENDENCIESTasTAFE is reliant on the continued support of the Tasmanian State Government via the Deed of Purchasing Agreement and maintaining market share in a highly competitive commercial training industry.

NOTE 16: RELATED PARTY TRANSACTIONSThere have been no related party transactions during the year. There are Directors who act on Boards of organisations that TasTAFE have dealings with and all such dealings are negotiated and conducted on a commercial arm’s length basis.


DISCLOSURES AND ADDITIONAL COMPLIANCE REPORTS

RIGHT TO INFORMATIONTasTAFE has implemented policy which, subject to privacy and confidentiality provisions, facilitates all reasonable requests for information from students, staff and the general public without recourse to the Right to Information Act 2009.

TasTAFE may levy a charge for information provided that is subject to a Right to Information request in accordance with the Right to Information Act 2009.

During the period 1 July 2014 – 30 June 2015, one request was received under the Right to Information Act 2009.


PUBLIC INTEREST DISCLOSURESTasTAFE has implemented a policy and procedural framework to encourage and facilitate the making of protected disclosures of improper conduct by TasTAFE’s officers and employees.

TasTAFE’s procedure provides protection and support for persons who made a disclosure and establishes a system for matters to be investigated and, where necessary, corrective actions to be taken.

During the period 1 July 2014 – 30 June 2015:

(a) There were no matters raised with TasTAFE under the Public Interest Disclosures Act 2002

(b) There were no matters referred to TasTAFE for investigation by the Ombudsman in 2013

(c) There were no matters referred to TasTAFE which we declined to investigate.


CONSULTANTS AND CONTRACTORSTasTAFE ensures procurement is undertaken in accordance with the mandatory requirements of the Treasurer’s Instructions relating to procurement, including that Tasmanian businesses are given every opportunity to compete for Agency business.

It is TasTAFE’s policy to support Tasmanian businesses whenever they offer best value for money for the Government.

Disclosures and additional compliance reports

73

DISCLOSURES AND ADDITIONAL COMPLIANCE REPORTS

FOR THE PERIOD 1 JULY 2014 TO 30 JUNE 2015:

SUMMARY OF PARTICIPATION BY LOCAL BUSINESSES: CONTRACTS >$50,000 (EX GST) (INCLUDING CONSULTANCIES)

Total number of contracts awarded/contract extensions 3

Total number of contracts awarded/contract extensions to Tasmanian businesses 1

Value of contracts awarded/contract extensions $3,066,365

Value of contracts awarded/contract extensions to Tasmanian businesses $178,515

Total number of tenders called and/or quotation processes run 3

Total number of bids and/or written quotations received 14

Total number of bids and/or written quotations received from Tasmanian businesses 3

CONTRACTS WITH A VALUE OF $50,000 OR OVER (EX GST) AND EXCLUDING CONSULTANCY CONTRACTS

Name of Contractor/s

Location of Contractor

Description of Contract

Period of Contract

Total Value of Contract

Tribal Group Pty Ltd

New South Wales Student Management System

December 2014 to December 2019

$2,537,850

eLearning Queensland Web based workplace evidence collection application

January 2015 to December 2019

$350,000

Awarded under Treasurer’s Instruction 1127

CONSULTANCY CONTRACTS WITH A VALUE OF $50,000 OR OVER (EX GST)

Name of Consultant

Location of Consultant

Description of Consultancy

Period of Consultancy


Nil

Awarded under Treasurer’s Instruction 1127

CONTRACT EXTENSIONS APPROVED IN ACCORDANCE WITH TREASURER’S INSTRUCTION 1115(4)

Name of Supplier

Description of Contract

Period of Extension


OzHelp Tasmania Foundation

Skills For Life Student Support 2013-14

July 2014 to June 2015

$178,515


Consultants and contractors continued

74

ACRONYMS

AAS Australian Accounting Standard

ACS Australian Computer Society

ACST Aged Care Services Tasmania

ACTS Australian Campuses Towards Sustainability

AIBS Australian Institute of Building Surveyors

AiGroup Australian Industry Group

AS/NZS Australian Standard/New Zealand Standard

ATP Aboriginal Training Programs

AVETMISS Australian Vocational Education and Training Management Information Statistical Standards

CEO Chief Executive Officer

CLM Conservation, Land Management

DH District High School

DoE Department of Education

DS District School

ED Employment Direction

EFT Equivalent full time (when referring to staffing)

ESKI Employment Starter Kit Initiative

FBT Fringe benefits tax

FFS Fee-for-service

FTE Full time employee

GM General Manager

GST Goods and services tax

HR Human Resources

LLN Language, Literacy and Numeracy

LSL Long service leave

MoU Memorandum of Understanding

MP Member of Parliament

NCDEA National Centre for Dairy Education Australia

PPE Personal protective equipment

RBF Retirement Benefits Fund

RTO Registered Training Organisation

SCH Student contact hours

TACC Tasmanian Automobile Chamber of Commerce

TAE Training and Education

TCCI Tasmanian Chamber of Commerce and Industry

TI Treasurers Instruction

TIA Tasmanian Institute of Agriculture

TSSA Tasmanian State Service Award

TTC Trade Training Centre

UTAS University of Tasmania

VET Vocational education and training

VETiS VET in Schools

WHS Work, Health and Safety

WLD Workplace Learning and Development

Acronyms

This listing is prepared to assist in the understanding of the Annual Report and related materials.

75

LOCATIONS

NORTH

Alanvale Campus: 54a Alanvale Road, Newnham

Inveresk Campus: Invermay Road, Invermay

Launceston Campus (including Drysdale): 10-16 Wellington Street, Launceston

NORTH WEST

Burnie Campus: 41-43 Mooreville Road, Burnie

Devonport Campus (including Drysdale): 20-36 Valley Road, Devonport

Smithton Campus: 13 Montagu Road, Smithton

SOUTH

Bathurst Street Campus: 26 Bathurst Street, Hobart

Bender Drive Campus: 8 Bender Drive, Derwent Park

Campbell Street Campus: 75 Campbell Street, Hobart

Claremont Campus: Link Road, Claremont

Clarence Campus: 4a Bounty Street, Warrane

Drysdale Campus: 59 Collins Street, Hobart

Hunter Street Campus: Hunter Street, Hobart

Campus locations

TasTAFE operates from a number of campuses across Tasmania:

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1300 655 307 (Australia wide) +61 3 6165 5671 (International)

GPO Box 2015 Hobart TAS 7001 Australia

[email protected] www.tastafe.tas.edu.au

CRICOS Number 03041M RTO Code 60142

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