ANNUAL REPORT - TAFE Queensland SkillsTech · 2018-03-13 · 8 September 2017 The Honourable Yvette...

ANNUAL REPORT 2016-17 | 1

ANNUAL REPORT2016-2017

8 September 2017

The Honourable Yvette D’Ath MP

Attorney-General and Minister for Justice and Minister for Training and Skills

GPO Box 149

Brisbane Qld 4001

Dear Minister,

I am pleased to present the Annual Report 2016-2017 and financial statements for TAFE Queensland.

I certify that this Annual Report complies with:

• the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009; and

• the detailed requirements set out in the Annual report requirements for Queensland Government agencies.

A checklist outlining the annual reporting requirements can be accessed at www.tafeqld.edu.au

Yours sincerely,

Annabel Dolphin

Board Chair

TAFE Queensland

Introduction and review 4

Our organisation 6

Our vision, values and key priorities 7

Key results 2016-17 8

Financial performance 9

Delivering for Queensland 10

Stronger within 12

Ahead of the curve 14

A focus on growth 16

Governance 18

CONTENTS

Organisational structure 19

Board business in 2016-17 20

Performance measures 21

Board Members 22

Committees 24

Other reporting requirements 26

Financial statements 2016-17 28

Management Certificate 60

Independent Auditor’s Report 61

Glossary of terms 64

The TAFE Queensland Annual Report 2016-17 is available from:

TAFE Queensland

Level 9, 133 Mary Street, Brisbane QLD 4000

PO Box 16100, City East Qld 4001

Phone: +61 7 3514 3600

or online at www.tafeqld.edu.au

Information on consultancies and overseas travel can be

accessed through the Queensland Government Open Data

website (www.qld.gov.au/data) or at www.tafeqld.edu.au

TAFE Queensland is committed to providing accessible services

to Queenslanders from all culturally and linguistically diverse

backgrounds. If you have any difficulty in understanding the

annual report please call TAFE Queensland on (07) 3514 3600

and we will arrange an interpreter to effectively communicate the

report to you.

© TAFE Queensland 2017

This annual report is licensed by TAFE Queensland under a Creative Commons Attribution (CC BY) 4.0 Australia licence.

CC BY Licence Summary Statement:

In essence, you are free to copy, communicate and adapt this annual report, as long as you attribute the work to TAFE Queensland.

To view a copy of this licence, visit www.creativecommons.org/licenses/by/4.0/au/deed.en

Attribution

Content from this annual report should be attributed as:

TAFE Queensland Annual Report 2016-17

ISSN 1322-5154 (Print) ISSN 2205-4677 (Online)

4 | tafeqld.edu.au

TAFE Queensland has

continued to operate

successfully during 2016-

17 within a complex and

changing environment

shaped by funding, policy

and program changes from

State and Commonwealth

Governments.

During this ongoing period of change and reform to the broader tertiary education and training sector, TAFE Queensland has been actively advocating for quality education and training and improving equity in funding for the Vocational Education and Training (VET) sector to improve choice and quality outcomes for all students.

We have maintained our commitment

to being a commercially focussed

and community minded provider.

This Annual Report demonstrates

some great achievements against our

strategic priorities and outlines a strong

performance for TAFE Queensland in

2016-17 including a positive operating

position for the fourth consecutive year.

In early 2017, the new TAFE Queensland

Board reaffirmed the direction of our

Strategic Plan which focusses on

achieving growth in our key markets,

complemented by a commitment to

efficiency and delivering a consistent

customer experience across all areas of

our business.

Across the state, we have delivered

customised training for large employers

including Queensland Rail and a number

of major regional hospitals and we have

continued hundreds of local partnerships

with the small business sector that drives

the Queensland economy.

Our students and employer clients

continue to experience strong satisfaction

levels at 89.6% and 92.8% respectively

- an increase from 91.4% in the previous

reporting period.

The new VET Student Loans (VSL)

program that was implemented

from 1 January 2017 (replacing the

VET FEE-HELP scheme (VFH)) has

significantly impacted the VET sector

resulting in the exit of a number of large

competitor providers from the sector.

This has presented both challenges and

opportunities for TAFE Queensland as

the broader sector now works to rebuild

confidence in VET as a study choice.

The 2017-18 Commonwealth Budget

indicated a reduction of circa $50 million

in VET investment in Queensland (by the

Australian Government from 2016-17

investment levels) and raises ambiguity

about inter-governmental funding

arrangements for National Partnership

Agreement funding with the introduction

of the Skilling Australia Fund. Details of

how the fund will work and how providers

can access training funds is yet to be

announced, but TAFE Queensland is well

placed to deliver areas of focus for the

new funding, including to apprentices

in high priority industries in regional and

remote areas.

INTRODUCTION AND REVIEW


In addition, the Higher Education Reform

Package has the potential to impact the

VET sector as a result of the proposal to

extend demand driven funding to Public

University sub-bachelor qualifications.

However, against a backdrop of

apprenticeship market decline, nationally,

TAFE Queensland has regained market

share as more employers look to TAFE

Queensland to provide stability and

quality training outcomes. Our work

behind-the-scenes to streamline our

apprenticeship processes is supporting

this growth and we eagerly await the

details of the Australian Government’s

Skilling Australians Fund which promises

to provide much needed support for

young workers and our priority industries.

TAFE Queensland is working closely

with Gold Coast 2018 Commonwealth

Games Corporation (GOLDOC) to design

the bespoke training programs that will

be delivered to the 15,000 volunteers of

the Gold Coast 2018 Commonwealth

Games. Analysis of the training needs for

up to 200 specialist roles and 30 different

competition and non-competition venues

has commenced and TAFE Queensland

has already begun delivering training to

250 GOLDOC staff that will be involved in

training the volunteers.

TAFE Queensland’s priorities for 2017-

18 will focus on delivering efficiencies

and process improvements to ensure

that our business is sustainable and

our offerings represent value-for-

money to Queenslanders. Delivering

efficiencies is now critical in ensuring

improvements in the affordability of

our training services in a price-driven

marketplace and our capacity to continue

to invest in the capability and systems

necessary to support a high quality VET

offering. This work will complement the

transition to a single Registered Training

Organisation (RTO) and our ongoing

investment in developing contemporary

product offerings that provide increased

consistency across our state.

TAFE Queensland will continue to meet

and exceed stakeholder expectations

and deliver solutions and benefits for our

customers through our focus on industry,

employers and students. Our program

of continuous improvement will ensure

our sustainability through an enterprise

approach to the way we do business

and embracing innovation in our products

and services.

Annabel Dolphin

Board Chair

TAFE Queensland

Jodi Schmidt

Chief Executive Officer

TAFE Queensland

Bamaga

Great Barrier ReefInternational Marine College

Thursday Island

Normanton

Cloncurry

MareebaAtherton

Innisfail

Ingham

Bowen

Pimlico

Connonvale

Charleville Roma Kingaroy

BundambaChinchilla

Warwick

Toowoomba

Springfield / Inala

Dalby

Bundaberg

NurunderiGympie

Hervey BayMaryborough

Charters Towers

Townsville Trade Training Centre

Mount IsaBurderkin

Maroochydore

Mooloolaba

Brisbane

AshmoreCoomeraSouthportCoolangatta

Nambour

Palm Island

Caboolture

Redcliffe

Grovely

LoganleaBrowns Plains

Acacia Ridge

Bowen HillsSouth Bank

Yeerongpilly

Bracken RidgeEagle Farm

Alexandra Hills

Mount Gravatt

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TAFE Queensland’s physical footprint covers an area from Thursday

Island in the North, Mount Isa in the West, Coolangatta in the South

and Hervey Bay in the East. Our six RTOs are:

• TAFE Queensland Brisbane

• TAFE Queensland SkillsTech

• TAFE Queensland Gold Coast

TAFE Queensland contributes to the

Queensland Government’s objectives for

the community by stimulating workforce

participation and economic growth.

Through quality training designed to

increase the knowledge and skills of

Queenslanders, TAFE Queensland

delivers training solutions that meet the

needs of students, communities, industry

and local economies. The government’s

objectives can be accessed at

www.premiers.qld.gov.au/publications/

categories/plans/governments-objectives-

for-thecommunity.aspx

Established as a statutory body under

the TAFE Queensland Act 2013 (TQ

Act), TAFE Queensland is a commercially

focused and community-minded

organisation servicing the length and

breadth of the state.

Due to our size, as Queensland’s largest

public provider, we are able to respond

to training market demand across a

wide range of industry training groups

(ITGs). TAFE Queensland offers practical,

industry-relevant training across 23

ITGs. We offer over 500 programs from

foundation skills and entry level workforce

qualifications to higher education

degrees, providing people with training

options at every stage of their career

and employers with skilling solutions that

respond to complex workforce needs.

Our network across over 50 locations

supports the delivery of training to

approximately 120,000 students

(including 7,390 international students

from over 110 countries) through a variety

of modes; be it face-to-face, online or in

the workplace.

OUR ORGANISATION

Our commitment to our students, industry and the VET sector is evident across our organisation.

• TAFE Queensland East Coast

• TAFE Queensland South West

• TAFE Queensland North

OUR VISION,VALUES AND KEY PRIORITIES


Moving to one RTOTAFE Queensland has commenced

the process of consolidating our

six RTOs into a single RTO from 1

July 2017. This work, along with the

establishment of a single website and

new Student Management System

(SMS) is critical to TAFE Queensland’s

positioning as a single brand within

the market to ensure that the

maximum efficiency and effectiveness

of the organisation’s size, scale and

reach can be realised over the next

phase of market evolution.

While the transition is largely an

administrative change, operating

as one RTO will leverage TAFE

Queensland’s scale and expertise,

make it easier to do business with

us and enable students to move

between TAFE Queensland regions

based on their needs.

GREAT RECOGNITION: TAFE QUEENSLAND • 2016 Large Training Provider of the Year – Queensland Training Awards

• Finalist – 2016 Australian Training Awards

• Registered Training Organisation of the Year Award – TAFE Queensland

SkillsTech, Construction Skills Queensland Excellence Awards

• Service Excellence Award – TAFE Queensland North, Employment, Education

and Training Sector, 2016 EMO Trans Northern Outback Business Awards

• Nominated for Queensland Reconciliation Awards

• 2016 finalist at the Australia-China Business Awards (ACBA) in the category

of the Business Excellence Award for Education and Training

• 2017 finalist at the Australia-China Business Awards (ACBA) in the category

of the Business Excellence Award for Consumer Services

• EventsAIR Innovation Award – TAFE Queensland Brisbane, for Rising Star

Institution of the Year

• Supplier of the Year 2016 – TAFE Queensland South West, Queensland Bus

Industry Council

OUR VISIONTAFE Queensland’s vision is to be the

market leader of high quality education

and training in Queensland and target

markets beyond.

OUR MISSIONThough our form has changed many

times throughout our proud history,

our mission has remained true:

To be an efficient, effective, sustainable,

responsive organisation that develops

individual’s skills and employment

opportunities by meeting employer,

industry and community needs.

OUR VALUES

Innovation

Bringing new ideas to life

Accountability

Delivering on our promises to

our customers and each other

Commerciality

Building a sustainable

organisation

Teamwork

Working together as

one TAFE Queensland

By holding true to these values and

keeping customers at the centre of

everything we do, we will continue to

strengthen TAFE Queensland’s reputation

as a market leader in high quality

education and training.

The following pages set out some of our

achievements against the objectives and

key performance indicators of each of

the key priorities of the Strategic Plan,

namely:

• Sharpen our industry, employer

and student focus

• Build our capability and

outcomes focus

• Innovate our products and services

• Embed sustainability

8 | tafeqld.edu.au

GREAT TRAINING

GREAT BRAND

GREAT STAFFCompetency

completion rate

89.78% 87%

Student satisfaction

93%

Employer satisfaction

Graduates employed or in further study

86%

Revenue from non-government sources

Queensland employers agree

TAFE Queensland

is a solutions provider

60%

Total staff (FTE)

4072Staff satisfaction

3.96(scale of 1 to 5)

122,034 41,600

36.21 million hours of training delivered

KEY RESULTS 2016-17

unique studentsCert 1 +

qualifications awarded

GREAT PERFORMANCE

60.5%

As per the financial

statements, TAFE

Queensland recorded an

operating profit of $20.0m

for 2016-17. This compares

to a surplus of $12.0m in

2015-16.

The 2016-17 operating result includes

a $7.0m contribution from Department

of Education and Training (DET) towards

the fit-out of the Sunshine Coast

Health Institute (SCHI) on behalf of

TAFE Queensland, as well as $1.8m of

expenses relating to the fit-out. TAFE

Queensland’s underlying operating profit

excluding these items was $14.2m.

TAFE Queensland has managed its

resources effectively in a difficult operating

environment, continuing to generate an

operating surplus while maintaining a

strong balance sheet underpinned by

considerable holdings of liquid assets.

TAFE Queensland continues to hold no

managed in line with the level of training

demand from our customers. Overall

costs increased by $33.7m (5.3%) which

included an average wage increase

of 2.5%, costs associated with third

party delivery arrangements, additional

maintenance expenditure and increase in

amortisation expense.

Employee Expenses

Supplies & Services

Depreciation & Amortisation

Other Expenses

Expenditure by

management

reporting

classification

Domestic Training

International Training

Government Subsidised Training

Commonwealth Training Programs

Grants & Contributions

Other Revenue

Income by

management

reporting

classification

FINANCIAL PERFORMANCE


Highlights from the 2016-17 year are provided below. Further details are contained

in the financial statements.

Operating performance:

financial highlights

2015-16

$’000

2016-17

$’000

Income 645,433 687,161

Expenses 633,474 667,201

Operating Surplus 11,959 19,960

Cash and cash equivalents 231,196 216,185

Total Assets 366,825 396,003

Total Equity 268,888 290,207

debt with all initiatives funded through

operating profits and working capital.

TAFE Queensland’s strong financial

position provides capacity to continue

making strategic investments within a

highly competitive and resource intensive

VET sector.

Revenues from training activities

increased by $23.6m (6%) in 2016-17,

with the majority of this increase arising

through delivery under Commonwealth

contracts and Queensland Government

subsidised training programs.

Grants and contributions (other than

Queensland Government subsidies)

increased by $19.5m during the year,

mainly due to grants and contributions

from DET including one-off additional

maintenance funding and contribution

towards the SCHI fit-out, and grants

under the Rescuing TAFE and Back to

Work programs.

TAFE Queensland has continued our

prudent management of expenditure,

ensuring operating expenses were

During 2016-17, we have continued to consult and collaborate with industry, employers and students through stakeholder engagement and business development programs to identify local issues and develop solutions through our product and service delivery.

DELIVERING FOR QUEENSLAND

Strategic priority Sharpen our industry, employer and student focus

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The Gold Coast 2018 Commonwealth

Games (GC2018) continued to be a major

priority for TAFE Queensland throughout

the year as a tier one sponsor of the games.

Fifteen Indigenous Small and Medium

Enterprises participated in TAFE

Queensland’s Supply Chain program,

developed in collaboration with the Office

of Commonwealth Games, Department

of Aboriginal and Torres Strait Islander

Partnerships and Grocon, to meet the

needs of tendering to Grocon and other

GC2018 contractors.

The program has been so successful it

has been nominated for the Queensland

Reconciliation Awards.

Registrations to become one of the

15,000 volunteers at GC2018 far

exceeded the expectation of Games’

organisers. The successful internal

volunteer recruitment drive attracted over

1,000 TAFE Queensland staff and students.

TAFE Queensland is the official training

partner for the GC2018 and will be

delivering bespoke training to the

15,000 successful volunteer applicants.

Training will cover up to 200 different

roles including venue-specific training

and orientation. Training received by

volunteers will include skills they can

apply outside of GC2018.

TAFE Queensland was represented by the

Board Chair, Annabel Dolphin and CEO,

Jodi Schmidt at the Queen’s Baton Relay

Official Launch at Buckingham Palace,

London in March 2017.

Strengthening partnershipsIndustry engagement remained a focus

for TAFE Queensland across 2016-17,

strengthening partnerships with large

enterprises such as Aurizon, Volvo

Group, Grand Central Shopping Centre,

Queensland Rail, Ramsay Health, Gold

Coast Hospital and Health Service and

Star Entertainment.

TAFE Queensland has become the

recognised provider of choice for

non-clinical training within Logan and

Beaudesert Hospitals through the

hospitals’ wellness program Healthy,

Wealthy and Wise.

Following the successful training model at

Logan, TAFE Queensland has extended

this program to other hospital’s including

the Princess Alexandra and Queen

Elizabeth II Jubilee Hospitals.

TAFE Queensland has further expanded

its existing relationship with oil and gas

producer SANTOS to train material

controller staff in South Australia and

Western and Central Queensland.

Training will cover accredited skill sets

and qualifications.

TAFE Queensland, Energex and BUSY

at Work have partnered to deliver the

Indigenous Bright Sparks Program.

The 16 week pre-apprenticeship program

provides Aboriginal and Torres Strait

Islander students the opportunity to

learn the basic skills and competencies

that will help them to obtain an electrical

apprenticeship.

The Queensland Hotel and Hospitality

School, a partnership between TAFE

Queensland and The Star Entertainment

Group celebrated its first year of

operation, and the measured success it

has achieved in training over 50 skilled

hospitality workers whilst fast tracking

90% of them into employment.

Following our successful arrangement

with Australian Industry Trade College

(AITC) at its Redlands Campus, TAFE

Queensland is now also the preferred

training provider of TAFE at School and

User Choice apprentice and trainee

training at the AITC Gold Coast campus.

Advancing QueenslandOn 4 May 2017, an agreement between

the Department of Science, Information

Technology and Innovation (DSITI) and

TAFE Queensland was signed which will

see an additional $300,000 investment in

TAFE Queensland’s Scholarship program

across Science, Technology, Engineering

and Maths (STEM) qualifications. This

will also include the opportunity for top-

up scholarships for TAFE Queensland

students transitioning to university.

Healthy relationshipsTAFE Queensland, in partnership with the

Young Women’s Christian Association

(YWCA) hosted members of the Domestic

and Family Violence Implementation

Council, including the Honourable Dame

Quentin Bryce, AD CVO for an informal

presentation of the Healthy Relationships

eLearning Program. A joint initiative

between TAFE Queensland and YWCA

Queensland, the program focusses on

preventing domestic violence by engaging

young adults through positive messaging

about healthy relationships.

GC2018


Project BooyahOff the back of its successes over the

past five years, Project Booyah (a joint

initiative with the Queensland Police

Service and Police Citizens Youth Club),

received a boost of $7.65m in State

Government funding over the next

five years.

This initiative will provide additional

programs that will assist at-risk youth

in Queensland into opportunities for

education and employment.

Skilling Queenslanders

Over 1,400 disadvantaged students

across the state enhanced their

knowledge and skills through the Skilling

Queenslanders for Work initiative.

Working in partnership with local

community organisations and not-for-

profits, TAFE Queensland delivered 52

training programs across a range of

industries.

TAFE Queensland responded to over

1,416 job seeker referrals as part

of the State Government’s Back to

Work Regional Employment Package.

Based in Hervey Bay, Dalby, Mt Isa,

Cairns, Townsville, Rockhampton

and Mackay, Jobseeker Officers are

providing career and training advice

and working with government and

employment agencies and employers

to build regional employment solutions

and match jobseekers with employment

opportunities.

Research partnership Prepared in partnership with the

Commonwealth Scientific and Industrial

Research Organisation (CSIRO), TAFE

Queensland launched The VET Era:

Equipping Australia’s workforce for the

future digital economy - examining the

skilling demands of the future Australian

workforce and the evolution that the

Australian VET sector must undertake to

meet these demands.

Following the high profile recognition

of the above work, TAFE Queensland

in conjunction with Jobs Queensland

has developed a regional workforce

development plan for the Fraser Coast

Regional Council Area, focussed on

examining innovative and emerging

industries and how these sectors can

be leveraged to support the transition of

workers from traditional industries.

In December 2016, TAFE Queensland

published ARIES (Applied Research,

Innovation and Entrepreneurship

Services) Case Studies 2016, featuring 20

examples of our educators working with

employers and within communities. These

case studies demonstrate collaborations

between our educators, learners and

employers within local communities

across Queensland.

Critical Participatory Action Research A key initiative of the TAFE Queensland

Education and Training Strategy is to

embed the scholarship of learning and

teaching and use action and applied

research to inform practice. To realise

this objective, a number of Critical

Participatory Action Research (CPAR)

projects were undertaken, encouraging

educators to reflect on and improve

teaching practice.

Greenlight Film Festival TAFE Queensland Brisbane produced

it’s very own student-targeted film

festival open to creative film and

television production students across

high schools and tertiary institutions as

well as recent graduates. The festival

created opportunities for further industry

and customer relationships for TAFE

Queensland.

Strategic investment in learning resourcesTAFE Queensland has invested heavily in

the development of high quality learning

resources over the past two years. Using

key stakeholder groups, including industry

representatives, a set of key design

principles have been developed to ensure

our learning and teaching resources are

cohesive, consistent and responsive to

the needs of target student cohorts.

STRONGER WITHIN

Strategic priority Build our capability and outcomes focus

12 | tafeqld.edu.au

Working together as one TAFE Queensland our staff have empowered one another to lead, innovate and drive quality throughout 2016-17.

Our talented educators and services staff

strive to deliver quality training and an

exceptional student experience; be it on

campus, online or in the workplace.

Excellence in learning and teaching is at

the heart of TAFE Queensland’s culture.

An organisation-wide focus on innovation

and quality helps attract and retain the

state’s most experienced vocational

teaching workforce who are recognised

by both students and employers as

experts in their fields. Our educators and

the excellence they bring to teaching,

learning and assessment is what sets us

apart from our competitors.

In line with the Strategic Plan, TAFE

Queensland continued its focus

on enhancing workforce capability

with a program of work to unify the

approach to professional learning,

capability development and knowledge

management.

Connected LeadersTo further support strategic execution,

senior leaders across TAFE Queensland

have participated in a series of leadership

workshops, including conversations

about effective leadership, which have

provided the foundations for strong

strategy execution.

Moving forward, the leadership

workshops will have a focus on change

management, with the introduction of

a tailored TAFE Queensland change

management toolkit.

Innovation HubFlowing from the success of last year, the

2017 Innovation Hub brought together

staff from across the state to focus on

Design Thinking methodology. The day

fostered a collaborative spirit as teams

worked together to come up with ideas

about how we can create a culture of

‘solutions’ across TAFE Queensland.

Regional innovation campaigns continue

to run regularly, with a network of

Innovation Officers sharing ideas and

successes across TAFE Queensland.

HECS-free scholarships Higher Education Contribution Scheme

(HECS)-free scholarships have been

available for eligible TAFE Queensland

staff under an agreement with the

University of Tasmania (UTAS) since

2013, and both the number of courses

available to staff and the number of

participants have been growing steadily.

We now have six courses in education

on offer (two undergraduate and four

post graduate qualifications). To date

282 TAFE Queensland staff have active

scholarships.

The Applied Learning Studies Reference

Group met bi-annually to review course

standards, the learner experience and

consider other opportunities. TAFE

Queensland is currently working with

UTAS to create or identify existing

professional learning units tailored to the

needs of our higher education academics.

LinkedIn ‘Ed Talk’ group This year also saw the launch of a ‘TAFE

Queensland only’ LinkedIn group, created

for current TAFE Queensland educators,

to provide the opportunity to contribute

knowledge and expertise, share success

stories, network and collaborate with

colleagues. An additional means of state-

wide communication, ‘Ed Talk’ aims to

promote, enable and provide a model of

social learning for educators.

Ed chats Fortnightly online meetings ‘chats’

continue to occur with educational

leaders to keep abreast of professional

learning calendar events and activity

including registration, attendance

at webinars/workshops, resource

development updates, consultation and

feedback. These meetings reinforce a

consistent approach to professional

learning across TAFE Queensland, to

enable and support the introduction of

new approaches to building capability

and meeting the needs of educators.

Educator Voice ForumsSixty-one applicants from different

disciplines and educational roles have

joined TAFE Queensland’s Educator Voice

Forum. Established to provide TAFE

Queensland educators with a forum to

provide feedback on strategic educational

projects, members are also encouraged

to raise, discuss and share solutions

to a number of work related issues.

Additionally, members were invited to

engage in a review of the new Inclusive

Practice training module and other

learning system enhancement initiatives.

Great recognition–TAFE Queensland employeesJudy Hoskins, lead teacher in

Indigenous Primary Health Care,

VET Teacher or Trainer Award,

Queensland Training Awards.

Tara Hastings, Director of Legal

Services and General Counsel,

Academia, Training and Education

Lawyer of the Year, Lawyers

Weekly Corporate Counsel

Awards 2017.

Mount Isa staff, Service Excellence

Award Employment, Education

and Training Sector, 2016 EMO

Trans Northern Outback Business

Awards.

TAFE Queensland SkillsTech,

Registered Training Organisation of

the Year award, Construction Skills

Queensland Excellence Awards.

Phil Vivian, teacher, Construction

Trainer of the Year Award, Major

Training Group.

Carl Balke, refrigeration and air

conditioning teacher has been

selected as part of a team of 24

experts that will train the 2017

Skills Squad in preparation for

the international WorldSkills

Competition in Abu Dhabi in 2017.

Paul Marshall, refrigeration and

air-conditioning teacher, was

awarded a Queensland Overseas

Foundation Global Connections

Bursary to undertake a study tour

of Vietnam with a focus on the

development of online teaching

and assessment resources.

TAFE Queensland

workforce

Total staff (FTE) 4072.37

Permanent staff 2503.5

Temporary staff 1176.23

Casual staff 215.74

Contract staff 176.9

Permanent

separation rate 6.43%


Staff training catalogueDuring 2016, staff were provided with

the ability to enrol in a steadily increasing

number of professional learning training

modules via the ‘staff training catalogue’

www.tafeqldtc.brightspace.com/.

This initiative allows educators to self-

enrol into online courses, review content

and webinar recordings and complete

quizzes and activities in their own time.

Through this approach, significant

progress has been made towards

building educator capability in validation,

assessment, quality and compliance.

Learning and Teaching Excellence ConferenceThe inaugural Learning and Teaching

Excellence Conference was held at the

Brisbane Convention and Exhibition

Centre in January 2017 and was attended

by 569 TAFE Queensland educators.

Topics, included tackling tough student

behaviour, action learning, online learning,

gen Y/Z learners and pedagogy.

Additionally, two masterclasses were

offered on 19 January 2017 aimed

at higher education and improving

assessment techniques.

World Teachers’ DayOn 28 October, TAFE Queensland

celebrated World Teachers’ Day in

conjunction with OctoberVET, an

Australian Vocational Education and

Training Research Association (AVETRA)

initiative focussed on research in VET.

TAFE Queensland’s theme in 2016 was

‘the value of applied research in VET’

and the day provided CPAR participants

with the opportunity to network, share

research experiences and present the

outcomes of their applied research

projects to a wider audience.

TAFE Queensland Staff AwardsThe third state-wide TAFE

Queensland Staff Awards were held

in 2017 to recognise the outstanding

achievement and high performance of

our staff across ten award categories

that reflect our corporate values and

focus on safety and service quality.

After six regional finals, the awards

culminated in a state final event

on 26 May 2017.

2017 TAFE Queensland Staff Awards Neil Wood, Great Achiever Award and

Educator of the Year

Laura Thomas, Great Achiever Award

and Employee of the Year

Jo-Liz Prosser, Educational Leader

Award

Les Johnson, Lifetime Achievement

Award

Neil Wattam, Industry Collaboration

Award

Carly Forrest and Naomi Richards,

Great Business Award

Susan Goller, Great Service Award

Tabitha Bleys, Great Safety Award

Leading Vocational Teacher Peer

Review Panel, Great Team Award

Karen Jones and Joyce Cheng,

Board Chair Great Ideas Award

Combining these events each year

ensures the focus is firmly on our

educators and the value of their various

contributions, the value of applied

research projects and scholarly activity

and the importance of educational

excellence to TAFE Queensland.

AHEAD OF THE CURVE

Strategic priority Deliver exceptional learning experiences

14 | tafeqld.edu.au

Our organisational focus on delivering great experiences to students and employers has positioned us as Queensland’s premier provider of VET. Our people have achieved this outcome in the face of significant change in our market and in our organisation.

TAFE Queensland’s success at the recent

Queensland Training Awards shows that

it continues to be the market leader of

high quality education and training in

Queensland and target markets beyond.

TAFE Queensland has invested in a

number of initiatives to expand and

improve the overall student experience as

well as increase access and participation

in education and training.

Scholarships programSince the launch of the TAFE Queensland

Scholarships program in 2015, more than

130 scholarships have been awarded

state-wide, with the program now

positioned as Australia’s leading vocational

education scholarships initiative.

The $5,000 scholarships provide students

with financial assistance to complete a

TAFE Queensland qualification across a

range of industry areas.

Success with Rescuing TAFETAFE Queensland continues to deliver

a range of training options under the

Rescuing TAFE program. Over 10,000

students have enrolled in a Rescuing TAFE

supported qualification this year, enabling

them to access funding to offset the cost

of training and support services that they

would otherwise not be eligible for.

Retaining sustainable traditionsIn partnership with Clermont Aboriginal

Community Development Fund, the

Wangan and Jagalingou People, Glencore

and the Department of Environment and

Heritage Protection, TAFE Queensland

is delivering land conservation and

management skills, including but not

limited to: maintaining cultural places,

environmentally sustainable work

practices, recording information about

country and first aid.

Preparing today’s students for tomorrow’s careersFollowing a successful pilot last year,

TAFE Queensland’s #DiscoverMyFuture

Program has now been rolled out to Year

9 students state-wide.

Additionally, DET has endorsed TAFE

Queensland’s Discover My Career

Program, enabling TAFE Queensland

to engage over 20 private and public

secondary schools in the program

targeting Year 10 students, prior to the

development of their Senior Educational

Training (SET) plan, to build awareness of

career options and assist them to select

appropriate subjects that will support their

career ambitions.

The above programs were developed

in response to a growing recognition in

high schools and universities that there

is not enough information and advice

for students prior to Year 11 to make

informed decisions about their future

education investment and

career pathways.

Continued growth in higher education pathwaysHistory was made this year when

61 students graduated from TAFE

Queensland with a University of Canberra

(UC) bachelor degree in a range of

different courses. The cohort became

the first students to achieve a bachelor

degree through TAFE Queensland’s

innovative partnerships with the University

of Canberra, marking a very special

milestone for this partnership.

TAFE Queensland also welcomed

approximately 1,100 continuing and

commencing students to higher

education courses this year. As part of

our partnership with UC four additional

bachelor degrees commenced in February

2017, bringing our higher education

offering to 17 programs.

Reintegration programs Continuing our work with Queensland

Corrective Services as the preferred

training provider, TAFE Queensland has

established a delivery model with the

Borallon Training and Correctional Centre

(BTCC) aimed to support BTCC’s vision

to be the leading Australian correctional

centre for the rehabilitation of young male

prisoners.

TAFE Queensland delivers skills and

qualifications to participants to enable

them to effectively transition back into

community and reduce the likelihood of

re-offending.

Get Set for WorkThe first round of projects as part of the

Get Set for Work program commenced in

October 2016 across a number of TAFE

Queensland regions.

In partnership with the charitable

foundation yourtown, these programs

aim to provide young people aged

15-19 years with nationally recognised

training, that will enable them to effectively

transition to employment and/or further

education and training.

Industry’s provider of choiceTAFE Queensland successfully

implemented a number of apprenticeship

and traineeship management strategies

to streamline processes across all regions

including; Strategic Relationship Strategy,

Apprentice Guide, User Choice Quality

Framework, standard TAFE Queensland

Induction System (eSign), future dated

enrolling and consistent monthly reporting.

This has supported an increase in market

share of apprentice commencements,

from 35.85% to 41.03% during the

financial year.

Unique Students

by AQF Level

Year 12 (equivalent)

Statement of Attainment

Other Non-award courses

Certificate I

Certificate II

Certificate III (or Trade Certificate)

Certificate IV (or Advanced Certificate)

Diploma

Higher education programs

TAFE Queensland Brisbane

TAFE Queensland East Coast

TAFE Queensland Gold Coast

TAFE Queensland North

TAFE Queensland SkillsTech

TAFE Queensland South West

Unique Students

by TAFE

Queensland

Region

0

3000

6000

9000

12000

15000

Unique Students by top 10 ITGs


2016 WorldSkills Australia national competitionTAFE Queensland students took out 14 medals including six gold, four silver

and four bronze at the 2016 WorldSkills Australia National Competition held in

Melbourne from 6 – 8 October. The medal winners were part of the Queensland

team which included more than 70 TAFE Queensland students.

Six gold medals were won by TAFE Queensland and competitors now have

a chance to be selected for the Australian team that will compete in the 44th

WorldSkills Competition to be held in Abu Dhabi in October 2017.

TAFE Queensland WorldSkills medallists are:

Automotive Services

• Auto Electrical – Silver

Connor McCue


• Auto Electrical – Bronze

Luke Budd


• Automotive Mechanics – Bronze

Robert Jory


Building and construction

• Electrical Installation – Gold

Nicholas Lennox


• Electrical Installation – Silver

Anthony Mesiano


• Refrigeration – Gold

Nathan McHugh


• Refrigeration – Silver

Hayden McColl


Client services

• Fashion Technology – Gold

Teegan DuToit


Computing and business

• Business Services – Gold

Ben Nedwich


• Hospitality services Cookery – Bronze

Sallie Brittain


• Restaurant Service – Gold

Emilia Montague


Metals and engineering

• Sheetmetal Work – Bronze

Tom Gee


Vocational Education and Training in

Schools (VETiS)

• VETiS Electrotechnology – Silver

Jordan Rigby


• VETiS Hairdressing – Gold

Stephanie Raux


Our student profileOur unique structure and state-wide delivery model demonstrates our commitment

to supporting a diverse student profile including school leavers, up-skillers, career

changers and job seekers from a wide range of socioeconomic and cultural

backgrounds in regional and remote locations.

This broad customer profile is representative of the community and demonstrates our

commitment to delivering training to students at any stage of their career journey to

meet ever changing skills needs.

A FOCUS ON GROWTH

Strategic priority Embed sustainability

16 | tafeqld.edu.au

TAFE Queensland is providing a range of integrated services that improve our efficiency, meet customer expectations and complement the delivery of high quality education and training in Queensland and beyond.

TAFE Queensland has made significant

progress against its ambitious strategic

agenda and has continued to deliver

strong financial results despite some

significant shifts in market share.

TAFE Queensland was successful in the

latest Construction Skills Queensland

procurement round, securing new

contracts across a range of funded

pathways including short courses, skills

assessment and gap training, and higher

level skills.

Broadening our facilities TAFE Queensland is committed to

supporting Queensland communities and

industry to access the skills they need to

prosper. While our broad delivery footprint

and focus on innovation has seen us

expand our range of learning options, our

campuses are still a critical part of our

delivery network.

TAFE Queensland doubled the teaching

area at its Inala campus to meet the

increased demand for English classes for

migrants and refugees in the local area,

providing a number of additional facilities

in the $3.4m renovation.

TAFE Queensland’s hair and beauty

salons in Bundaberg and Mooloolaba

have both had a makeover, transforming

the purpose-built training facilities into

modern and functional salons. The

salons, which are fitted with state-of-the-

art equipment, provide students with the

opportunity to learn their trade and test

their skills as they would in the real world.

TAFE Queensland Gold Coast’s $26m

custom built creative campus was

open to the public in October, offering

interactive displays, demonstrations, tours

and career advice.

In Hervey Bay, the new $250,000

purpose-built Health Industry Training

Centre opened its doors to meet the

demands of the Fraser Coast’s rapidly

growing health services industry.

TAFE Queensland has become part of an

historic educational partnership, having

set up a new site at the Charters Towers

School of Distance Education. With the

school’s large number of students, the

partnership will allow TAFE Queensland

to offer students additional education

programs and continue to build on its

relationships with local high schools and

the community.

Since opening the doors at the Sunshine

Coast Health Institute in February 2017,

TAFE Queensland has enrolled over

300 students in nursing, aged care

and community services. As part of the

collaborative partnership and 25-year

unincorporated joint venture arrangement

with Sunshine Coast Hospital and

Health Service, the University of the

Sunshine Coast and a medical school,

TAFE Queensland is providing a range

of programs to develop and improve

the skills of doctors, nurses, allied

health workers, health professionals and

vocational students in Queensland.

A four year rolling investment program

was approved for $17.25m per year

to maintain and improve assets while

awaiting the outcomes of the Queensland

Government’s Strategic Training

Infrastructure Plan (STIP), currently being

considered by government.

Under the above arrangements, a number

of projects have now commenced:

• planning for a new student hub at the

Pimlico site

• an additional car park at the Coomera

campus

• a new student hub at Toowoomba

• an additional $5milion for operational

condition based maintenance (e.g.

painting, recarpeting) through the

majority of sites across the state.

AMEP and SEE successTAFE Queensland was successful in

the tender for the Adult Migrant English

Program (AMEP) and Skills for Education

and Employment (SEE). This means TAFE

Queensland will continue to be the sole

provider of AMEP and a major provider of

SEE across 39 locations in Queensland.

The new SEE contract will see TAFE

Queensland expand delivery into Ipswich,

Toowoomba, Sunshine Coast, Cairns and

throughout Far North Queensland.

These programs have the potential to

bring up to $55m into the business each

year over the next three years.


TAFE Queensland InternationalTAFE Queensland continues to

reinforce its international presence

through investment in the growth

and consolidation of our international

business.

In its effort to improve the level of service

to key stakeholders, TAFE Queensland

has been transitioning towards a single

Commonwealth Register of Institutions

and Courses for Overseas Students

(CRICOS) registration, with consequent

benefits in terms of streamlining of

processes and ease of access for

international students, agents and clients.

In 2016-17, TAFE Queensland

International was successful in securing

$65,000 in funding under the International

Education and Training Partnership fund.

This funding will be used to highlight the

capability of Queensland VET providers

in the Indian market, establishing

Queensland as a leader in offshore VET

and facilitating the delivery of training

in the resources, health and services

sectors.

TAFE Queensland was also successful

in gaining a sub-contract agreement

for 2016 with Coffey International

Development Pty Ltd for the Meat

Production, Processing and Supply Chain

Management short course program,

under the Australia Awards Indonesia

Department of Foreign Affairs and Trade

contract.

Activities from TAFE Queensland

International’s business development and

partnerships teams have resulted in a

number of key achievements, including:

• A year-on-year 16% growth in

revenue generated by offshore training

agreements in 2016-17.

• Over 250 inbound delegates as part of

study tour programs, government and

vocational school visits.

• In-country teacher training workshops

to promote and enhance their

understanding of the Australian

VET system.

• Formalised education pathways for

offshore students to study diploma to

degree pathways.

• Delivery of the International Training

and Assessment Course (ITAC) as

part of the Asia-Pacific Economic

Cooperation (APEC) Transport and

Logistics Project.

• Partnership with Dingo Software Pty

Ltd, an intelligence expert service

company specialising in predictive

maintenance, to deliver Dingo’s

predictive maintenance software to

mining clients across the world. TAFE

Queensland and Dingo successfully

delivered a joint workshop in Mexico,

which attracted over 50 mining

companies, receiving significant media

coverage in the country.

• Appointed by Broadspectrum, a multi

sector service company, to deliver

training in Manus Island to 49 local

employees to improve local capacity

through training and knowledge

transfer.

Australia-Pacific Technical College This year, the Australia-Pacific Technical

College (APTC) marked its 10th year of

delivering training that is changing lives,

not only for graduates but also for the

communities in which they live and work.

In 2016-17, APTC delivered 103

programs to 1,267 students in 29

qualifications who successfully completed

37,168 competencies.

The transformative impact of APTC

has been recognised on national and

international stages. For example, APTC’s

cookery trainer, Daniella Ah Leong-

Leota, was named as Samoa’s female

ambassador to the World Association of

Chefs’ Societies (Worldchefs).

Recognition also went to APTC graduate,

Abhinesh Chand, who was awarded the

Member of the Order of Fiji medal from

His Excellency, the President of Fiji, for

service to the community.

Further demonstrating its success, 85%

of APTC graduates were recorded as

being in employment post training -

having gone on to advance their careers,

start their own small businesses or

pursue work opportunities abroad.

Student Management System (SMS) renewalImplementing our new SMS was one of

the highest priorities for TAFE Queensland

in 2016-17.

Along with our partner, TechnologyOne,

TAFE Queensland has worked steadily

on the planned reconfiguration of our

SMS so that it will support our day-to-day

business and the student experience from

end-to-end.

ICT support renewal projectDuring the year, TAFE Queensland

successfully changed ICT support

providers from Unisys to Fujitsu.

Under the agreement, Fujitsu will provide

large-scale critical services including

service desk, end user computing,

infrastructure management, network

- LAN support and cross functional

services.

18 | tafeqld.edu.au

Strengthening TAFE Queensland’s good governance practices, has allowed the organisation to drive performance, achieve our organisational goals and objectives and deliver on business improvement opportunities.

Management and oversightTAFE Queensland was established by

the TQ Act as a statutory body under the

Financial Accountability Act 2009 and the

Statutory Bodies Financial Arrangements Act 1982 on 1 July 2014. This legislation

prescribes the objectives and functions

associated with the governance of TAFE

Queensland.

Governing bodyTAFE Queensland’s governing body is

the TAFE Queensland Board. The TAFE

Queensland Board has seven members

constituted in accordance with the

TQ Act.

The previous Board term expired on 14

August 2016, but was extended to 30

November 2016. The new Board was

appointed on the 1 December 2016.

FunctionsTAFE Queensland has the following

functions under the TQ Act:

a) to provide vocational education and

training services

b) to provide further education, and

other forms of education, to support and

complement the provision of vocational

education and training services

c) to produce and sell vocational

education and training products

d) to prepare, publish, distribute or

license the use of literary or artistic

work, audio or audio-visual material,

or computer software

e) to undertake research and

development on matters relating

to its functions

f) to contribute to and actively

engage with industry on matters

relating to its functions

g) to exploit commercially TAFE

Queensland’s resources, including

any study, research or knowledge or

the practical application of any study,

research or knowledge

h) to report to the Minister for Training

and Skills on the performance of its

functions

i) to advise and make recommendations

to the Minister for Training and

Skills about matters relevant to the

performance of its functions and any

other matters referred to it by the Minister

for Training and Skills

j) any other functions given to it

under an Act.

TAFE Queensland is to perform its functions:a) in a way that is efficient, effective and

responsive to the needs of industry,

students and the general community; and

b) on a not-for-profit basis.

GOVERNANCE

Minister for Training and Skills

TAFE Queensland Board

Jodi Schmidt

Chief Executive Officer

Michael Thomas

Chief Operating Officer

Dean Sedgman

Chief Information Officer

Jenny Dodd

Chief Academic Officer

Julia Smith

Chief Human Resources Officer

Andrew Stuart-Murray

Chief Financial Officer

Robert Petherbridge

Executive Director, Strategic Policy and Executive Services

Mary Campbell

General Manager TAFE Queensland SkillsTech

Brent Kinnane

General Manager TAFE Queensland South West

Garry Kinnon

A/General Manager TAFE Queensland Brisbane

Jo Pyne

General Manager TAFE Queensland North

Karen Dickinson

General Manager TAFE Queensland Gold Coast

Paul Wilson

General Manager TAFE Queensland East Coast


The TAFE Queensland Board provides the strategic direction and vision and the Executive team operationalises the activity required to implement the Strategic Plan for the organisation.

ORGANISATIONAL STRUCTURE

20 | tafeqld.edu.au

This Annual Report demonstrates some great achievements against our strategic priorities and outlines a strong performance for TAFE Queensland in 2016-17.

At the end of 2016, Minister D’Ath

announced a changing of the guard for

the TAFE Queensland Board. Outgoing

board members, including Chair, Warren

Tapp, were recognised for their influential

contribution to TAFE Queensland

during the establishment and transition

to a statutory body and their critical

role in managing the performance of

Queensland’s largest public provider

of training.

The appointment of five new and two

continuing board members will play a

key role in shaping TAFE Queensland’s

strategic direction over coming years

to provide direction and guidance

to Queensland’s largest provider of

vocational training. The balance of new

and continuing members will provide

leadership continuity while reinvigorating

the Board with new skills and experience

to meet TAFE Queensland’s emerging

challenges.

TAFE Queensland’s new Board has

set a clear strategic direction for the

organisation as TAFE Queensland

continues to deliver quality and

responsive services as the state’s largest

provider of further education and training.

During 2016-17 the Board, comprised

of the Chair and six members, met their

legislated requirements through the

development of the TAFE Queensland

Strategic Plan 2017-2021 and

submission of the TAFE Queensland

Operational Plan 2017-18 to the Minister

for Training and Skills.

During the reporting period, the Board

held eight meetings and travelled

to Ipswich, Logan and Mt Isa, to

connect and actively engage with key

stakeholders, employers, industry,

community members and staff to build

on reputation and better understand local

training needs, now and into the future.

During the year, the Board has also

played a key role in guiding the further

development of TAFE Queensland’s safety

culture, risk management practices,

financial sustainability and strategic

positioning in the highly competitive VET

market.

The TAFE Queensland Board has

continued to build on its strong reputation

as a leader of VET sector policy. This is

illustrated through TAFE Queensland’s

contribution to a number of key

consultation processes over the last

12 months.

In 2016-17, TAFE Queensland provided

the following submissions to national

consultation processes:

• Australian Government’s Driving

Innovation, Fairness and Excellence in

Higher Education Discussion Paper.

• Australian Government’s Review of the

National VET Provider Collection Data

Requirements Policy.

• Australian Government’s VET Student

Loans Eligible Course List.

• Australian Parliament’s Inquiry into

Innovation and Creativity Inquiry.

• Pre-Budget submission to the

Australian Government.

• Submission to the Senate Inquiry in the

Higher Education Support legislation

amendment (A more sustainable,

responsive and transparent higher

education system).

• Queensland Government’s Department

of Education and Training’s VET Quality

Framework.

• Submission to the Jobs Queensland

Positive Futures: Apprenticeships and

Traineeships in Queensland.


of Education and Training’s Advancing

Skills for the Future: A Strategy for VET

in Queensland.


of Education and Training’s Advancing

Aboriginal and Torres Strait Islander

Education and Training draft action

plan.

The TAFE Queensland Board will continue

to engage with and influence policy within

the sector. This objective will be a key

focus of the Board throughout 2017-18

and will provide ongoing benefit to both

TAFE Queensland and the VET sector

more broadly.

BOARD BUSINESS IN 2016-17


TAFE Queensland Performance Measure2016-17

Target/estimate

2016-17

Actual

Proportion of all attempted competencies successfully completed 90% 89.8%

Student post training outcome (employed or in further study after training) 88% 86.0%

Proportion of graduates satisfied with the overall quality of their training 90% 86.8%

Proportion of employers satisfied with the overall quality of training 85% 92.8%

Average cost per competency successfully completed ($) $799 $825

89.8

Successful competency

The proportion of all attempted

competencies successfully completed

was 89.78% which is on par with

2015-16 results and indicates that

nearly 9-out-of-10 competencies per

student were successfully achieved.

$825$799

Average cost per competency

87%

Student satisfaction

The proportion of graduates satisfied

with the overall quality of their training

was 87%, a positive result, however

slightly behind the target for 2016-17.

93%

Employer satisfaction

The proportion of employers satisfied

with the overall quality of training

was 93%, significantly better than

the target of 85%.

Graduates employed or in further study

86%

The percentage of students achieving

a post training outcome (employed or

in further study after training) was 86%

which is on par with 2015-16 results.

The average cost per

competency was $825 and

is behind the target of $799.

Performance against this

measure is impacted by a

number of variables, including

volume of training activity, type

and duration of competencies

delivered, class sizes and

general cost increases

(wage and CPI increases).

PERFORMANCE MEASURES

%

22 | tafeqld.edu.au

Ms Annabel DolphinChair

Ms Annabel Dolphin has held several independent non-executive board roles and leadership

positions across the private, government and resources sectors. Possessing a unique blend of

business, human resources and directorship experience, Annabel has extensive business strategy,

human resource management and leadership expertise. Annabel is an Independent Non-Executive

Director of North Queensland Bulk Ports as well as Chair of People and Culture Committee and

Member of the Audit and Financial Risk Committee. Annabel is a Director of Mater Health Services

North Queensland and currently is a member of several private Advisory Boards in mining services,

manufacturing, professional services, civil construction, and retail travel. Annabel was previously a

Non-Executive Director of Ergon Energy. She holds a Bachelor of Business Management, Diploma in

Neuroscience of Leadership, and a Graduate of the Australian Institute of Company Directors.

BOARD MEMBERS

Ms Noela L’EstrangeMember

Noela L’Estrange is a highly experienced

Director in both public and private

sectors, including education, utilities and

not-for profits.

She has expertise in in corporate

governance and leadership, ethics,

learning and development. She is a Fellow

of both AIM and AICD, a full member of

the Queensland Law Society, and was a

founding member of the Women Lawyers

Association of Queensland (WLAQ), of

which she is an Honorary Life Member.

She was one of the first women to be

made a Fellow of the AIM. From 2009-

15, she was CEO of the Queensland

Law Society, the first female to hold the

position. She is also a Director of National

Seniors Australia. She holds a BA(Hons),

LL.B and a Masters of Administration.

Ms Louise CoxMember

Ms Louise Cox is an experienced Board

member serving as Chair, Deputy Chair,

Chair of Finance and Risk, and Chair

of Governance in commercial, public

sector, and not for profit boards across a

broad sector group including education,

professional services in legal, architecture

and accounting, management

consultancy and mental health. Louise is

a member of the Executive Committee

of the Caxton Legal Centre and a Fellow

of CPA Australia and the Tax Institute

of Australia, Chair of Griffith University’s

Department of Accounting, Finance

and Economics Advisory Board, and a

member of QUT’s School of Accountancy

- School Advisory Committee. Louise

has previously served as a member and

Chair of the Metropolitan South Institute

of TAFE Advisory Council from December

2008 to June 2014, and as a Director

of Open Minds and ThomsonAdsett

Architects.

Mr Peter DowlingMember

Mr Peter Dowling is an Accountant

(FCPA and FCA) and Company Director.

He is a former Ernst and Young Tax and

Business Advisory Partner. He was made

a Member of the Order of Australia (AM)

in the General Division for services to

accountancy and the community.

He has served on Government and

private sector boards over a 15 year

period. His current Board positions

include Healthdirect Australia, Metro

South Hospital and Health Services

Board, Workcover Queensland and

Lexon Insurance.

He also holds Audit Committee roles

as Chair or Member on a number of

local government councils and State

government departments. He is also

the Honorary Queensland Consul for

Botswana. Peter was a member of the

inaugural TAFE Queensland Board.


Mr Shaun CoffeyMember

Shaun Coffey is an experienced Chair,

Non-Executive Director and Chief

Executive specialising in leadership and

strategy, capacity building and R&D

management.

He has a significant portfolio of

governance experience that was

developed alongside a successful career

in executive management in Australia and

New Zealand. He was elected a Fellow of

the Australian Academy of Technological

Sciences and Engineering in 2004, and a

Companion of the Royal Society of New

Zealand in 2009.

He has been a Fellow of the Australian

Institute of Company Directors since

2006. Shaun has worked in both the

private and public sectors, and in for-

profit and not-for-profit organisations. His

governance experience spans various

industry sectors including agriculture,

animal health, pharmaceuticals,

food processing, industrial R&D,

manufacturing, and renewable energy.

Currently Shaun leads a governance,

leadership and strategy advisory service

operating internationally.

Mr Peter PriceMember

Peter began his career in the electricity

industry in 1981 after attaining an

Honours Bachelor Degree in Engineering

and a Masters in Engineering Science at

the University of Queensland.

He was an Executive General Manager in

Energex from March 2006 to November

2016 leading Programming, Procurement

and Services, Network Performance

and Asset Management business units.

His senior management experience

has seen him involved in all aspects of

the energy industry that has led him to

become a recognised industry leader.

Peter has recently be appointed as

Energy Queensland’s Asset Safety &

Performance Team with a commitment

to ensure that Queensland distribution

electricity assets perform safely and

optimally and deliver exceptional value for

our customers over all timeframes.

He has a strong background in

Queensland’s skills and training sector

as Chairperson of Energy Skills

Queensland, a member of the TAFE

Reform Board, the inaugural TAFE

Queensland Board and (former)

Chairperson of Skills Tech Australia. Peter

holds an Honours Bachelor Degree in

Engineering and a Masters in Engineering

Science and is also a Procurement

Professional (MCIPS) and a Fellow of

the Australian Institute of Company

Directors. He has a strong commitment

to safety, effective risk management, and

disruptive technologies.

Ms Deborah WilsonMember

Deborah is an experienced Company

Director having held several independent

board roles across government, the

private sector, and a listed organisation.

Currently on the board of ThomsonAdsett

Architects and Australia’s CEO Challenge

including various committee positions -

Strategy and Vision, People and Culture

and Finance and Audit.

Deborah is currently the General

Manager at OnTalent, a boutique talent

management organisation. Having

spent some 20+ years in the fast paced

and highly competitive recruitment and

careers sector, Deborah reflects on

sales cultures, global transformations

and digital disruptions that continue

to challenge individuals and business.

She has held executive roles of Chief

Executive Officer and Managing Director

of a listed recruitment company.

Deborah is a Fellow of the Institute of

Company Directors and holds a Master of

Organisational Leadership. She was also

a prior member of the Brisbane North

Institute of TAFE Council and Director of

the Southbank Institute of Technology.

24 | tafeqld.edu.au

COMMITTEES

Audit Finance and Risk Management CommitteeThis committee advises the Board

on the quality of external operating

controls, reviews financial risks, internal

and external audit functions, financial

statements and risk management.

In 2016-17, the committee continued its

focus on embedding TAFE Queensland’s

Risk Management Framework with a goal

of improving the visibility and management

of risks faced by the business.

TAFE Queensland’s risk management

framework includes policy and

procedures that are based on the

approach that TAFE Queensland will be

risk aware, responsive, agile and resilient

and allow for the review and addressing

of risks that have the potential to effect

the strategic and operational objectives

of our organisation.

TAFE Queensland conducts risk

management activities in accordance

with the international standard for risk

management. The committee has been

focussed on maturing four risk attributes:

risk leadership, knowledge management,

governance and assurance, along with

resources, tools and processes.

The Board maintain a risk appetite that

guide the decision making frameworks

across the organisation and manages

quarterly reviews of known and emerging

risks via the TAFE Queensland Executive,

this committee and the Board, including

the establishment and monitoring of

mitigation strategies.

The organisation’s compliance obligations

also remained in focus for the committee,

aided by the involvement of internal

auditors PricewaterhouseCoopers, in

conjunction with the Queensland Audit

Office, to deliver a program of audit work

for 2016-17.

The audit function is managed through

this committee and is used to determine

whether TAFE Queensland’s risk

management controls and governance

processes, as designed and represented

by management, is adequate and

functioning in a manner to ensure:

• risks are appropriately identified and

managed

• interaction with the various groups

involved with governance occurs as

needed

• significant financial, managerial, and

operating information is accurate,

reliable, and timely

• employees’ actions are in compliance

with policies, standards, procedures,

and applicable laws and regulations

• resources are acquired economically,

used efficiently, and are adequately

protected

• programs, plans and objectives are

achieved

• quality and continuous improvement

are fostered in TAFE Queensland’s

governance and internal control

process

• significant legislative or regulatory

issues impacting TAFE Queensland are

recognised and addressed properly.

The specific scope of work is set by

the annual audit plan which for

2016-17 included:

• review of cost management

• review of ICT security framework

• review of asset management

• review of fraud management

• review of financial services provision.

The committee continued to provide

guidance and significant input into work

health and safety strategies with the

goal of continuous improvement and

implementation of a consistent safety

culture throughout the organisation until

January 2017 when the newly appointed

Board made the decision to transfer

responsibility for work health and safety

oversight to the People, Culture and

Safety Committee (PCSC).

TAFE Queensland’s risk management and

internal audit activities are cognisant of

key legislative requirements, such as the

TQ Act and the Financial Accountability Act 2009. The activities were also

undertaken with due regard to the

Queensland Treasury Audit Committee Guidelines 2012.

The members of the Audit, Finance and

Risk Management Committee for 2016-17

were Peter Dowling (Chair), Peter Price

and Darrell Butcher up to 30 November

2016. The newly appointed Board held

its first meeting on 17 January 2017

and reconfirmed Peter Dowling as the

continuing Chair of this committee,

Shaun Coffey and Louise Cox as

members and Annabel Dolphin

(Board Chair) as an observer.


People, Culture and Safety

Committee

The role of this Committee is to provide

advice on appointments, retirements

and removal of Board members and

to establish a process for the regular

evaluation of the Board, Executive

Directors and senior staff. The Committee

also advises on the appointment and

remuneration of the CEO.

In February 2017, as part of the annual

review of Board and Committee terms

of reference, the Board resolved to

change the name of the Remuneration

and Nomination Committee to the

People, Culture and Safety Committee

recognising the importance of TAFE

Queensland’s commitment to providing

a safe, healthy and productive working

environment for all people.

During the year, this Committee played

a significant role in the Chief Executive

Officer’s performance review for 2016-

17, appointment of the new General

Manager for TAFE Queensland Gold

Coast and new General Manager for

TAFE Queensland Brisbane and the

appointment of the new Chief Human

Resources Officer. In addition, the

Committee provided guidance and input

into the High Performance Scheme

including development of the Chief

Executive Officer’s key performance

indicators and Performance Management

Framework.

The members of this committee in 2016-

17 were Anita Brown (Chair), Elizabeth

Honeycombe and Vivienne Mallinson

and new members endorsed at 17

January 2017 Board Meeting – Deborah

Wilson (Chair), Annabel Dolphin, Noela

L’Estrange and Peter Price.

26 | tafeqld.edu.au

Workforce planning and performanceOur annual Employee Engagement

Survey continues to provide valuable

feedback from staff to inform our

workforce strategy. We had a strong

response rate to the 2017 Employee

Engagement Survey – 78% for TAFE

Queensland overall – and a good

response rate across all regions.

To ensure we remain the market leader

in high quality education and training,

TAFE Queensland’s refreshed workforce

strategy follows the employment lifecycle.

Our Educator Capability Framework,

which guides our educational delivery

staff in their development, has been

introduced and is being used in the new

performance planning and development

process.

The new performance planning and

development process, which emphasises

performance conversations and alignment

to the TAFE Queensland Strategic Plan,

has been introduced to all staff across

TAFE Queensland.

Our Leadership Capability Framework is

being used by TAFE Queensland Services

staff in their performance development

conversations, as well as guiding the

leadership and coaching development

framework for TAFE Queensland.

Our staff awards have now been

embedded across TAFE Queensland,

with the third state awards ceremony

further enhancing our ability to reward

high achievers. The TAFE Queensland

High Performance Scheme is also in

place, which rewards senior leaders who

achieve stretch targets.

Networked leadership is now part of the

vernacular of TAFE Queensland, with

leaders understanding the need to share

and use strengths with each other to be

effective leaders.

The safety and well-being of all our

employees, students and industry

partners who visit our sites continues to

be a focus. Recent Workplace Health

and Safety (WHS) audit results indicate

a significant improvement across TAFE

Queensland.

Our vision of Safety Leadership:

‘Everybody Safe at Work’ now takes an

holistic, strategic approach to WHS with

a focus on continuing to embed a safety

culture across TAFE Queensland.

Employee relations frameworkUntil 4 January 2017, TAFE Queensland’s

workforce operated under a number of

industrial instruments:

• the TAFE Teachers Award – State 2012

and the Senior Colleges Awards –

State 2012 as well as the Department

of Education, Training and Employment

TAFE Educational Employees Certified

Agreement 2012 – for teaching staff.

• the Public Service Award – State

2012, the Employees of Queensland

Government Departments (Other

than Public Servants) Award – State

2012, the Building Trades Public

Sector Award – State 2012 and the

Engineering Award – State 2012

as well as the State Government

Departments Certified Agreement

2009 – for non-teaching staff.

On 5 January 2017 the TAFE Queensland

(TAFE Services Employees) Certified

Agreement 2016 and TAFE Queensland

Educators Certified Agreement 2016 were

certified and came into effect.

At the same time, the TAFE Queensland

Award – State 2016 also came into

effect. The Award and Agreements

work together to set the employment

conditions for most of our employees.

Individual Employment Agreements are

used to engage our executive staff.

OTHER REPORTING REQUIREMENTS


Public sector ethicsTAFE Queensland is defined as a

Queensland public service agency for

the purposes of the Public Sector Ethics Act 1994. For this reason, there is an

obligation to comply with the Code of

Conduct for the Queensland Public

Service.

All TAFE Queensland employees are given

access to appropriate education and

training about public sector ethics as part

TAFE Queensland’s Orientation Program

(which contains a mandatory unit on the

Code of Conduct.) This unit is available

online to all employees at all times and

can be used at regular intervals during

their employment as required.

The Working with TAFE: Conduct, Ethics and Performance Policy is

the basis of the TAFE Queensland

framework of administrative human

resource procedures and management

practices. These have proper regard to

the ethics principles and values of TAFE

Queensland. There is a strong alignment

with the Code of Conduct for the

Queensland Public Service.

In addition, the planning processes of

TAFE Queensland are congruent with

the public sector ethics principles and

incorporate integrity and accountability

into our strategies, objectives and

actions. Integral to the framework of

our employee performance agreements

is the requirement that our behaviours

incorporate the ethical priorities of the

Public Sector Ethics Act 1994.

Information systems and record keepingWith the increasing global cyber-

security risks to corporate and personal

information, TAFE Queensland has taken

a proactive response by adopting the

ISO/IEC 27001 Information Security Management Standards. We have

commenced design and implementation

of a standards compliant Information

Security Management System (ISMS),

taking a risk based approach to

information security with clear executive

accountabilities and a controls framework

for how our people, processes and

technology work together to secure

information.

The ISMS represents a program of work

with progressive operationalisation over

18 months.

Analytics remains an organisational focus

across TAFE Queensland’s corporate

and regional offices; developing new

information assets and contributing

performance dashboards to the corporate

data warehouse.

Training has taken the form of basic and

advanced user sessions reinforced with

facilitated workshops to develop analytical

skills across the organisation.

TAFE Queensland has continued to

improve its recordkeeping maturity with

an electronic document store now in

excess of 150,000 records including

executive correspondence and business

processes for finance, human resources

and general administration.

Paper based personnel files have been

digitised to improve information search

and retrieval and a program is planned

to extend the scope and management

of digitised records under a Queensland

State Archives compliant digitisation

policy.

This year our HP Records Manager

(HPRM), was upgraded to its next

version, HP Enterprise Content

Manager (HPECM), providing additional

document management features and

positioning TAFE Queensland to take

advantage of the latest desktop operating

environments.

Our Information Management Framework

identifies the disciplines necessary

to manage information efficiently and

in compliance with legislation and

standards.

This year we have added or revised

policies, procedures or guidelines for

recordkeeping, archiving, Right to

Information, privacy, and information

security to the policy framework.

External scrutinyTAFE Queensland was not subject to

external scrutiny for this reporting period.

28 | tafeqld.edu.au

ContentsStatement of Comprehensive Income 29

Statement of Financial Position 30

Statement of Changes in Equity 31

Statement of Cash Flows 32

1. Corporate identity 33

2. Basis of preparation 33

3. Joint arrangements 34

4. Controlled entities 34

5. Sales of goods and services 35

6. Grants and contributions 35

7. Employee expenses 36

8. Supplies and services 37

9. Other expenses 37

10. Cash and cash equivalents 38

11. Receivables 39

12. Property, plant and equipment 40

13. Intangible assets 43

14. Payables 45

15. Employee benefits 45

16. Other current liabilities 46

17. Commitments for expenditure 46

18. Contingencies 47

19. Financial instruments 47

20. Budget vs actual comparison 50

21. Key management personnel 55

22. Related party transactions 58

23. New and revised accounting standards 58

24. Future impact of accounting standards not yet effective 59

25. Events occurring after balance date 59

FINANCIAL STATEMENTS2016 –17


Notes

2017

$'000

2016

$'000

Income

Sales of goods and services 5 278,328 270,269

Grants and contributions 6 396,144 360,788

Other income 12,689 14,376

Total income 687,161 645,433

Expenses

Employee expenses 7 397,965 389,269

Supplies and services 8 250,239 225,586

Grants and subsidies 1,889 1,227

Depreciation and amortisation 12,013 7,001

Impairment of non-current assets - 7,022

Other expenses 9 5,093 3,368

Total expenses 667,201 633,474

Operating result 19,960 11,959

Other Comprehensive Income

Increase (decrease) in asset revaluation surplus 58 68

Total Other Comprehensive Income 58 68

Total comprehensive income for the year 20,018 12,027

The accompanying notes form part of these statements.

STATEMENT OF COMPREHENSIVE INCOMEfor the year ended 30 June 2017

30 | tafeqld.edu.au

STATEMENT OF FINANCIAL POSITIONas at 30 June 2017

Notes

2017

$'000

2016

$'000

Current assets

Cash and cash equivalents 10 216,185 231,196

Receivables 11 100,738 82,883

Inventories 852 663

Other current assets 8,039 7,966

Total current assets 325,813 322,709

Non-current assets

Property, plant and equipment 12 42,089 28,668

Intangible assets 13 28,101 15,448

Total non-current assets 70,190 44,116

Total assets 396,003 366,825

Current liabilities

Payables 14 42,328 39,233

Employee benefits 15 18,967 21,953

Other current liabilities 16 44,501 36,751

Total current liabilities 105,796 97,937

Non-current liabilities

Total non-current liabilities - -

Total liabilities 105,796 97,937

Net assets 290,207 268,888

Equity

Contributed equity 170,096 168,795

Accumulated surplus / (deficit) 119,986 100,025

Asset revaluation surplus 125 68

Total equity 290,207 268,888



STATEMENT OF CHANGES IN EQUITYfor the year ended 30 June 2017

Accumulated

Surplus /

(Deficit)

Asset

Revaluation

Surplus

Contributed

EquityTOTAL

$’000 $’000 $’000 $’000

Balance at 1 July 2015 88,067 - 151,263 239,329

Net transfers in/(out) from other

Queensland Government entities- - 17,532 17,532

Operating result 11,959 - - 11,959

Increase in asset revaluation surplus - 68 - 68

Balance at 30 June 2016 100,025 68 168,795 268,888

Net transfers in/(out) from other

Queensland Government entities- - 1,301 1,301

Operating result 19,960 - - 19,960

Increase in asset revaluation surplus - 58 - 58

Balance at 30 June 2017 119,986 125 170,096 290,207


32 | tafeqld.edu.au

STATEMENT OF CASH FLOWSfor the year ended 30 June 2017

Notes

2017

$'000

2016

$'000

Cash flows from operating activities

Sales of goods and services 293,420 284,360

Grants and contributions 374,708 357,799

GST input tax credits from ATO 24,260 19,419

Interest received 4,780 6,555

Other receipts 6,640 6,773

Employee expenses (401,898) (386,521)

Supplies and services (268,938) (251,237)

Grants and subsidies (1,889) (1,227)

GST remitted to ATO (11,774) (6,893)

Other payments (2,414) (2,555)

Net cash provided by operating activities 10 16,896 26,473

Cash flows from investing activities

Sales of property, plant and equipment 50 82

Payments for property, plant and equipment (13,110) (2,317)

Payments for intangibles (18,848) (15,297)

Net cash used in investing activities (31,907) (17,532)

Net increase in cash and cash equivalents (15,012) 8,940

Cash and cash equivalents at beginning of financial year 231,196 222,256

Cash and cash equivalents at end of financial year 10 216,185 231,196



NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017

1. Corporate identityTAFE Queensland was established

as a statutory body under the TAFE Queensland Act 2013 on 1 July 2013.

TAFE Queensland is a not-for-profit entity

governed by an independent board.

TAFE Queensland is the largest and most

experienced provider of VET in the state,

with a history of serving Queensland’s

communities for over 130 years.

Each year TAFE Queensland enrols over

120,000 students across a network

of over 50 campuses in Queensland,

in employers’ workplaces, online

and in markets offshore. Our offering

spans foundation skills and entry level

qualifications to higher education degrees

across more than 500 programs.

2. Basis of preparation(a) Compliance with prescribed

requirements

These financial statements are general

purpose financial statements which have

been prepared in accordance with:

• applicable Australian Accounting

Standards (AASBs) and Interpretations

• Financial Accountability Act 2009

• Financial and Performance Management Standard 2009

• Queensland Treasury’s Minimum

Reporting Requirements for reporting

periods beginning on or after 1 July

2016

• Statutory Bodies Financial Arrangement Act 1982

• other authoritative pronouncements.

New accounting standards early adopted

and/or applied for the first time in these

financial statements are outlined in

Note 23 New and Revised Accounting

Standards.

The financial statements are authorised

for issue by the Chairperson, TAFE

Queensland Board, the Chief Executive

Officer, and Chief Financial Officer at

the date of signing the Management

Certificate.

(b) Measurement of fair values

TAFE Queensland’s accounting policies

and disclosures require the measurement

of fair values for non-financial assets

relating to property, plant and equipment

and financial instruments. Fair value

is defined as the price that would be

received to sell an asset or paid to

transfer a liability in an orderly transaction

between market participants at the

measurement date.

All assets and liabilities for which fair value

is measured or disclosed in the financial

statements are categorised within the

following fair value hierarchy based on the

inputs used in the valuation techniques as

follows:

• Level 1: quoted prices in active

markets for identical assets or

liabilities.

• Level 2: inputs other than quoted

prices included in Level 1 that are

observable for the asset or liability,

either directly or indirectly.

• Level 3: inputs for the asset or liability

that are not based on observable

market data (unobservable inputs).

If the inputs used to measure the fair

value of an asset could be categorised in

different levels of the fair value hierarchy,

the fair value measurement is categorised

in its entirety in the same level of the

fair value hierarchy as the lowest level

input that is significant to the entire

measurement.

Further information about the

assumptions made in measuring fair value

is included in Note 12 Property, Plant

and Equipment, and Note 19 Financial

Instruments.

(c) Presentation

Items included in the financial statements

are measured using the currency of

the primary economic environment in

which the entity operates (‘the functional

currency’). The financial statements are

presented in Australian dollars, which

is TAFE Queensland’s functional and

presentation currency.

Foreign currency transactions are

translated into the functional currency

using the average exchange rates

prevailing each month in which

transactions occur. Foreign exchange

gains and losses resulting from the

settlement of such transactions and

from the translation of monetary assets

and liabilities denominated in foreign

currencies at year end exchange rates are

generally recognised in profit or loss.

Amounts included in the financial

statements have been rounded to

the nearest thousand dollars, unless

disclosure of the full amount is specifically

required.

Comparative information has been

restated where necessary to be

consistent with disclosures in the current

reporting period.

34 | tafeqld.edu.au


2. Basis of preparation (continued)(d) Use of estimates and judgements

The preparation of financial statements

requires management to make estimates,

judgements, and assumptions that affect

the application of accounting policies

and the reported amounts of assets,

liabilities, income, and expenses. The

estimates and associated assumptions

are based on historical experience and

other factors that are considered relevant.

Actual results may differ from these

estimates. Estimates and underlying

assumptions are reviewed on an ongoing

basis. Revisions to accounting estimates

are recognised in the period in which

the estimate is revised and in any future

periods affected.

In particular, information about significant

areas of estimation, uncertainty and

critical judgements in applying accounting

policies that have the most significant

effect on the amount recognised in the

financial statements are described in the

following notes:

• Note 11 Receivables

• Note 16 Other current liabilities.

3. Joint arrangementsJoint arrangements exist when two or

more parties have joint control. Joint

control is the contractually agreed sharing

of control of an arrangement, which exists

only when decisions about the relevant

activities require the unanimous consent

of the parties sharing control.

During 2016-17 TAFE Queensland

partnered with Sunshine Coast Hospital

and Health Service (SCHHS) and

University of Sunshine Coast (USC) in the

operation of the Sunshine Coast Health

Institute (SCHI). SCHI operates as a joint

arrangement under an unincorporated

joint venture agreement, based at the

new Sunshine Coast University Hospital.

The primary aims of SCHI are to advance

the education of trainee medical officers,

nurses, midwives, and other health care

professionals, while providing outstanding

patient care and extending research

knowledge. Each partner has rights

and obligations to the assets, liabilities,

revenue and expenses of SCHI.

TAFE Queensland has accounted for its

interest in the joint arrangement, including

recognising its share of assets, liabilities

and expenses jointly held/incurred,

in accordance with AASB 11 Joint Operations.

The initial share allocation under the joint

arrangement is:

• Sunshine Coast Hospital and

Health Service: 52.6%

• University of

Sunshine Coast: 23.7%

• TAFE Queensland: 23.7%

4. Controlled entitiesThe following entity is controlled by TAFE

Queensland:

Directly Controlled

Name: TAFE Queensland International

Education Pty Ltd

Purpose and Principal Activities:

Deliver training services and provide

international development assistance.

% Interest in Entity & Basis for Control:

100% interest in ordinary share capital

enabling control of majority voting rights.

Financial Information:

Total Assets: 2017: $1.315m

Total Revenue: 2017: $6.805m

Total Liabilities: 2017: $1.085m

Total Operating Result: 2017: $0.230m

In July 2016 TAFE Queensland

participated, with the approval of the

Treasurer, in the formation of TAFE

Queensland International Education Pty

Ltd (TQIE) and controls 100% of the share

capital and voting rights in the company.

TQIE’s registered office is in Brisbane,

and its purpose is delivering training

services and providing international

development assistance and support

to the Commonwealth Department of

Foreign Affairs and Trade (DFAT) and to

any other entity engaged in the provision

of such services from time to time.

The predominant source of revenue for

TQIE is earned through sub-contracting

from TAFE Queensland for the delivery

of services under the Australia Pacific

Technical College (APTC) contract with

DFAT. In 2016-17 TQIE recognised

revenues totalling $6.805m in relation to

services provided to TAFE Queensland.

The transactions and balances of TQIE

are immaterial to TAFE Queensland

and the economic entity and therefore

have not been consolidated in financial

statements.



5. Sales of goods and services2017

$'000

2016

$'000

Student fees and charges 165,021 162,654

Fees for training services 110,113 104,656

Sales of goods and ancillary services 3,193 2,959

Total 278,328 270,269

Sales of goods and services are recognised as revenues when it has been earned and can be measured reliably with a sufficient

degree of certainty. Accrued revenue is recognised if the revenue has been earned but not yet invoiced.

6. Grants and contributions

Queensland government grants and contributions

– Queensland government subsidised training 156,703 141,235

– VET Purchasers grant 134,000 134,000

– Rental support grant 47,786 40,526

– Corporate operating grant 33,246 34,158

– Other grants and contributions 14,887 4,017

Commonwealth government grants and contributions 4,541 3,389

Other donations, sponsorships, and contributions 4,980 3,463

Total 396,144 360,788

Grants, contributions, donations and gifts received that are non-reciprocal in nature are recognised as revenue on receipt or when

it is probable that the economic benefits will flow to TAFE Queensland, has a right to receive the contribution, and the value of that

benefit can be reliably measured. Grants received that are reciprocal in nature are recognised over the term of the arrangements.

TAFE Queensland’s cost disadvantage in the market is recognised by the VET Purchaser’s grant, which funds TAFE Queensland

for the differential staffing costs between public and private training providers.

Queensland government subsidised training relates to the component of course fees that is received for eligible students from the

Queensland government.

36 | tafeqld.edu.au


7. Employee expenses2017

$'000

2016

$'000

Salaries and wages 280,035 273,068

Annual leave 28,965 28,052

Long service leave 6,853 6,576

Employer superannuation contributions 38,517 37,116

Other employee benefits 21,115 22,629

Payroll tax and fringe benefits tax 17,444 16,476

Other employee-related expenses 5,036 5,353

Total 397,965 389,269

The number of employees as at 30 June 2017, including both full-time employees and part-time employees measured on a full-

time equivalent basis (reflecting Minimum Obligatory Human Resource Information (MOHRI)) is 4,072 (4,174 full time equivalent

2015-16).

Salaries, wages and sick leave

Salaries and wages due but unpaid at

reporting date are recognised as a liability

at current salary and wage rates. Prior

history indicates that on average, sick

leave taken each reporting period is less

than the entitlement accrued. As sick

leave is non-vesting, a liability for unused

sick leave entitlements is not recognised.

An expense is recognised for this leave

when taken.

Annual leave and long service leave

TAFE Queensland employs people in

Australia under state-based awards

and it also employs people overseas in

connection with APTC in accordance with

the laws of the local jurisdictions in which

APTC operates – Fiji, Vanuatu, Papua

New Guinea, and Solomon Islands.

For employees on Queensland-

based conditions of employment,

TAFE Queensland is a member of the

Queensland Government’s Annual Leave

Central and Long Service Leave Central

Schemes. A levy is payable to these

schemes to cover the cost of employees’

annual leave (including leave loading

and on-costs) and long service leave.

These levies are expensed in the period

in which they are payable. Amounts

paid to employees for annual leave and

long service leave are claimed back

from the schemes quarterly in arrears.

TAFE Queensland does not recognise a

provision for annual leave or long service

leave in the financial statements as these

liabilities are held, and reported, on a

whole-of-government basis.

For employees employed under foreign

conditions of employment, a liability for

annual leave accrued up to the end of

the reporting period is recognised based

on current salary and wage rates, and

includes employer related on-costs. The

liability for long service leave is recognised

in the provision for long service leave

and measured as the present value

of expected future payments to be

made in respect of services provided

by employees up to the reporting date.

Consideration is given to the expected

future wage and salary levels, experience

of employee departures, and periods of

service. Expected future payments are

discounted using marked yields at the

reporting date on government bonds

with terms to maturity and currency

that match, as closely as possible, the

estimated future cash outflows.

Superannuation schemes

TAFE Queensland contributes to the State

Government Superannuation Contribution

Scheme (QSuper) for employees under

both the defined benefit scheme and the

accumulation superannuation scheme.

TAFE Queensland also contributes

to several other externally manage

accumulation superannuation schemes.

Contributions are expensed in the period

in which they are paid or payable.


8. Supplies and services2017

$'000

2016

$'000

Contractors 43,075 28,835

Property rental 50,792 49,196

Property, information technology support services, and transport 86,091 79,503

Travel and accommodation 8,510 6,847

Agents commissions 3,815 2,937

Advertising and promotions 9,776 10,700

Training materials 9,709 9,693

Printing and stationery 4,837 4,387

Minor equipment purchases 10,098 7,423

Subscriptions, books, and publications 3,976 4,467

Finance, human resources, and support services 4,001 6,208

Other supplies and services 15,559 15,390

Total 250,239 225,586


9. Other expenses

Other expenses includes remuneration to auditors. Total audit fees quoted by the Queensland Audit Office relating to the 2016-17

financial statements are $173,000 (2016 $153,000).

38 | tafeqld.edu.au

10. Cash and cash equivalents2017

$'000

2016

$'000

Cash at bank 72,557 70,777

Queensland Treasury Corporation Capital Guaranteed Cash Fund 143,628 160,419

Total 216,185 231,196

Cash and cash equivalents comprise cash on hand, cheques receipted but not yet banked, and other short term highly liquid

investments. Cash at bank includes educational bequests (including interest earnings) of $0.425m (2015-16 $0.423m).

Reconciliation of operating Result to Net Cash provided by Operating Activities

Operating Result 19,960 11,959

Non-cash items included in operating result:

Depreciation and amortisation 12,013 7,001

Asset Impairment - 7,022

(Gain)/Loss on sale of property, plant and equipment 339 63

Net SCHI contribution / write-off of assets (5,160) -

Change in assets and liabilities:

(Increase)/decrease in receivables (17,722) 5,875

(Increase)/decrease in GST input tax credits receivable (247) (5,105)

Increase/(decrease) in GST payable 114 4,086

(Increase)/decrease in inventories (189) (91)

(Increase)/decrease in other current assets (73) 725

Increase/(decrease) in accounts payable 3,095 (1,857)

Increase/(decrease) in accrued employee benefits (2,985) 2,802

Increase/(decrease) in other liabilities 7,750 (6,007)

Net cash provided by operating activities 16,896 26,473



11. Receivables2017

$'000

2016

$'000

Current

Trade debtors 23,660 29,857

Less: Allowance for impairment loss (4,002) (2,244)

19,659 27,613

GST receivable 3,910 3,777

Accrued revenue 70,695 45,112

Other receivables 6,475 6,382

Total 100,738 82,883

Receivables are recognised at amounts due at the time of sale or service delivery. Trade debtors are generally due for settlement

30 days from invoice date. Other receivables are due in accordance with their contractual terms.

Collectability of trade debtors is reviewed on an ongoing basis with provision being made for impairment as a proportion of the age

of the debt. Individual debts that are uncollectable are written off when identified. Movements in the provision for impairment are

recognised as an expense in that period. All known bad debts were written-off at 30 June 2017.

Receivables and payables are stated with GST included. The net amount of GST recoverable from the Australian Taxation Office is

includes as a current asset.


40 | tafeqld.edu.au


12. Property, plant and equipment2017

$'000

2016

$'000

Buildings:

At fair value 5,084 4,854

Less: Accumulated depreciation (3,579) (3,311)

Carrying amount 1,506 1,543

Plant and equipment:

At cost 105,251 98,146

Less: Accumulated depreciation (72,891) (72,596)


Work in progress:

Gross 8,223 1,575


Machinery of Government Changes

DET transferred plant and equipment to TAFE Queensland in accordance with Ministerial approval received from the Attorney-General

and Minister for Justice and Minister for Training and Skills on 5 March 2017. The effective date of the transfer was close of business

on 31 March 2017.

The increase in assets of $1.301m has been accounted for as an increase in contributed equity as disclosed in the Statement of

Changes in Equity.


12. Property, plant and equipment

(continued)Closing balances and reconciliation of

carrying amount

BuildingsPlant &

Equipment

Work in

ProgressTOTAL

2017

$’000

2017

$’000

2017

$’000

2017

$’000

Gross 5,084 105,251 8,223 118,558

Less: Accumulated depreciation (3,579) (72,891) - (76,469)

Carrying amount at 30 June 2017 1,506 32,361 8,223 42,089

Represented by movements in carrying amount:

Carrying amount at 1 July 2016 1,543 25,550 1,575 28,668

Acquisitions (including upgrades) 25 780 12,305 13,110

Transfers in - 6,461 - 6,461

Disposals - (389) - (389)

Transfers between asset classes - 6,095 (5,658) 438

Net revaluation increments in operating surplus/(deficit) 58 - - 58

Depreciation expense (120) (6,137) - (6,256)


2016

$’000

2016

$’000

2016

$’000

2016

$’000

Gross 4,854 98,146 1,575 104,575

Less: Accumulated depreciation (3,311) (72,596) - (75,907)


Represented by movements in carrying amount:

Carrying amount at 1 July 2015 1,588 4,744 - 6,332

Acquisitions (including upgrades) - 2,317 - 2,317

Transfers in - 17,532 - 17,532

Disposals - (128) - (128)

Transfers between asset classes - - 1,575 6,751

Net revaluation increments in operating surplus/(deficit) 68 - - 68

Depreciation expense (113) (4,090) - (4,203)



42 | tafeqld.edu.au


12. Property, plant and

equipment (continued)

Asset classes

Each class of property, plant and

equipment is carried at fair value or cost

less, where applicable, any accumulated

depreciation and impairment losses.

Items of property, plant and equipment

with a total value in excess of the

following thresholds are recognised in the

year of acquisition:

Class of fixed asset Threshold

Buildings $10,000

Plant and equipment $5,000

Acquisition of property, plant and

equipment

Acquisitions of property, plant and

equipment are initially recorded at cost.

Cost is determined as the fair value of

consideration given to acquire the asset

plus costs incidental to the acquisition,

including engineering design fees and all

other establishment costs.

Costs incurred subsequent to the initial

asset purchase are capitalised when the

expenditure improves the condition of

the asset beyond its originally assessed

standard of performance or capacity.

Asset valuation

Each class of property, plant and

equipment is carried at fair value or cost,

less any accumulated depreciation and

impairment losses. Fair value is measured

in accordance with AASB 116 Property, Plant and Equipment and Queensland

Treasury’s Non-Current Asset Policies for

the Queensland Public Sector.

Buildings are measured at fair value

using a depreciated replacement cost

approach. Valuations are undertaken

annually to ensure that the carrying value

of the assets does not differ materially

from that which would be determined

using fair value at the end of the reporting

period. Due to the specialised nature

of this class of asset where there is

generally no active market, the fair value

is determined using information from a

variety of sources.

The fair value measurement for buildings

of $1.506m ($1.543m 2015-16) has been

categorised as a Level 3 in the fair value

hierarchy (refer to Note 2(b)).

Revaluations using independent

professional valuer or internal expert

appraisals are undertaken at least once

every five years. The effective date of

the last specific appraisal for TAFE

Queensland’s building was 30 June 2015,

conducted by quantity surveyor firm Gray,

Robinson & Cotterell (GRC).

The replacement cost estimate was

prepared from plans and elevations

together with available schedules and

specifications. Where this standard of

supplied information was not available

GRC determined appropriate information

from site surveys that were conducted.

GRC applied a combination of pricing

methodologies all of which were adjusted

to reflect the anticipated construction

market as at the effective reporting

date. Detailed estimates were also used

to determine the cost of replacing the

existing assets with a modern equivalent

asset.

The building asset class was not

specifically appraised in the reporting

period, however previous valuations

have been materially kept up-to-date

via the application of relevant indices.

TAFE Queensland ensures that the

application of such indices results in a

valid estimation of the assets’ fair values

at reporting date. The indices applied

in 2016-17 were prepared by quantity

surveyor firm Gray, Robinson & Cotterell

(GRC) on behalf of DET. With similar

assets as DET within this asset class,

TAFE Queensland has adopted the

recommended index of 4.38%.

GRC has undertaken sensitivity analysis

prior to determining the recommended

Building Price Index, to ensure that the

values are reflective and are relative to

other assets of a similar nature. Through

this process, which is undertaken

annually, management assesses and

confirms the relevance and suitability of

indices provided by GRC based on our

own particular circumstances.

The current value in use is considered to

materially reflect highest and best use for

all property, plant and equipment items.

Depreciation expense

Property, plant and equipment is

depreciated on a straight-line basis so

as to allocate the net cost or revalued

amount of each asset, less any estimated

residual value, progressively over its

estimated useful life to TAFE Queensland.

Straight line depreciation is used as that

is consistent with the consumption of

service potential of these assets over their

useful life to TAFE Queensland.

Any expenditure that increases the

originally assessed capacity or service

potential of an asset is capitalised and the

new depreciable amount is depreciated

over the life of the asset.

Assets under construction (work-in-

progress) are not depreciated until

construction is complete and the asset is

put to use or is ready for its intended use,

whichever is earlier. These assets are then



13. Intangible assets2017

$'000

2016

$'000

Intellectual property:

At cost 13,325 3,240

Less: Accumulated amortisation (6,124) (1,790)


Software purchased:

At cost 9,268 13,333



Software internally generated:

At cost 24,845 24,845


Carrying amount 140 328

Other intangible assets:

At cost 623 623

Less: Accumulated amortisation (237) (140)

Carrying amount 387 483

Work in progress:

Gross 19,222 11,254


12. Property, plant and

equipment (continued)

reclassified to the relevant class within

property, plant, and equipment.

Depreciation methods, estimated useful

lives and residual values of property, plant

and equipment are reviewed annually and

adjusted if appropriate. The estimated

useful lives for each class of depreciable

assets are:

Class of fixed asset Useful life

(years)

Buildings 25 - 80

Plant and equipment 3 - 20

Gains and losses on disposals

Gains and losses on disposals are

determined by comparing proceeds

with the carrying amount of the asset at

the time of disposal. These gains and

losses are included in the Statement of

Comprehensive Income.

44 | tafeqld.edu.au


13. Intangible assets (continued)

Inte

lle

ctu

al

Pro

pe

rty

So

ftw

are

Pu

rch

ase

d

So

ftw

are

Inte

rna

lly

Ge

ne

rate

d

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er

Inta

ng

ible

Asse

ts

Wo

rk in

Pro

gre

ss

TO

TA

L

20

17

$’0

00

20

17

$’0

00

20

17

$’0

00

20

17

$’0

00

20

17

$’0

00

20

17

$’0

00

Gro

ss

13

,32

59

,26

82

4,8

45

6

23

19,2

22

67,2

83

Less: A

ccum

ula

ted

am

ort

isation

(6,1

24

)(8

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(24

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(23

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un

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un

e 2

017

7,2

02

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14

03

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Rep

rese

nted

by

mov

emen

ts in

car

ryin

g am

ount

:

Carr

ying a

mount

at

1 J

uly

2016

1,4

49

1,9

33

32

84

83

11,2

54

15,4

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uis

itio

ns (in

clu

din

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pgra

des)

--

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18,8

48

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48

Transfe

rs b

etw

een a

sset

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10

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(10,8

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(438)

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(97)

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ts

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rk in

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ss

TO

TA

L

20

16

$’0

00

20

16

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00

20

16

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00

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16

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00

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16

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00

20

16

$’0

00

Gro

ss

3,2

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13

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1 J

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2015

71

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13. Intangible assets (continued)Intangible assets with a cost greater than

$100,000 are capitalised. Subsequent

expenditure is capitalised when it

increases the future economic benefits

embodied in the specific asset to which

it relates.

Intangible assets are recognised and

carried at cost less accumulated

amortisation and accumulated impairment

losses.

Costs associated with the development

of intangible assets are capitalised and

amortised on a straight-line basis over

its estimated useful life. The cost of

intangible assets includes the cost of

all materials, direct labour, other directly

attributable costs, and an appropriate

proportion of overheads attributable

during development.

Amortisation

Amortisation is recognised on a straight-

line basis over the estimated useful lives

of intangible assets from the date that

they were available for use. The useful

lives of intangible assets are reviewed

annually and adjusted if appropriate.

The estimated useful lives of intangible

assets are:

Class of intangible asset Useful life

(years)

Intellectual property 3

Software purchased 5 - 10

Software internally generated 7 - 10

Other intangibles 10

Impairment

The carrying amounts of TAFE

Queensland’s non-current assets are

reviewed annually to determine whether

there is any indication of impairment.

An impairment loss is recognised if the

carrying amount of an asset or its cash-

generating unit exceeds its estimated

recoverable amount.

Intangible assets are principally assessed

for impairment by reference to the actual

and expected continuing use of the

asset by TAFE Queensland. Recoverable

amount is determined as the higher of

the asset’s fair value less costs to sell and

amortised replacement cost.

14. Payables2017

$'000

2016

$'000

Trade creditors 40,806 36,581

Other creditors 1,522 2,652

Total 42,328 39,233

Trade and other payables represent the value of goods and services provided to TAFE Queensland prior to the end of the

financial year that remain unpaid. Trade and other payables are recognised upon receipt of the goods or services ordered and are

measured at the agreed purchase price less any applicable discounts. Amounts owing are unsecured and are generally settled on

30 day terms.

15. Employee benefits

Accrued salaries and wages 9,685 8,785

Annual leave levy/provision 7,600 11,286

Long service leave levy / provision 1,683 1,882

Total 18,967 21,953

A liability is recognised for benefits accruing to employees for salaries and wages, annual leave, and long service leave when

it is probable that settlement will be required and they are capable of being measured reliably. Current liabilities recognised for

employee benefits expected to be settled within 12 months are measured at their nominal value using current salary and wage

rates and related on-costs.

46 | tafeqld.edu.au


17. Commitments for expenditure

Non-cancellable operating lease commitments

Payable:

Not later than one year 4,460 3,879

Later than one year and not later than five years 7,299 6,029

Later than five years 40,138 -

Total 51,897 9,909

Capital Expenditure

Payable:

Not later than one year 5,470 158

Later than one year and not later than five years - -

Later than five years - -

Total 5,470 158

Commitments are inclusive of GST which is not recoverable from the Australian Tax Office.

Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases

and are not recognised in TAFE Queensland’s Statement of Financial Position. Operating lease payments are expensed in the

period incurred and are representative of the pattern of benefits derived over the lease term.

Operating leases are entered into as a means of acquiring access to office accommodation, training facilities, and office

equipment. Lease payments are generally fixed, but with inflation escalation clauses upon which future years rentals are

determined.

16. Other current liabilities2017

$'000

2016

$'000

Current

Unearned revenue 39,093 31,715

Payments received in advance 4,536 4,482

Other current liabilities 872 554

Total 44,501 36,751

Unearned revenue is recognised where payments for goods and services are received in advance of TAFE Queensland delivering

the related goods and/or services.



18. ContingenciesAt 30 June 2017, TAFE Queensland

has 29 active claims with WorkCover

Queensland and 6 claims with the

Queensland Government Insurance Fund

(2015-16: 31 claims with WorkCover

Queensland and 4 claims with the

Queensland Government Insurance

Fund). These claims are not considered to

be material in value.

19. Financial instrumentsCategorisation of financial

instruments

Financial instruments are recognised

initially at fair value when the related

contractual rights or obligations exist.

Subsequent to initial recognition these

financial instruments are measured as

described below.

Financial assets are derecognised

if the contractual rights to the cash

flows from the financial assets expire

or if the financial asset is transferred to

another party without retaining control or

substantially all risks and rewards of the

asset are transferred. Financial liabilities

are derecognised if the obligations

specified in the contract expire or are

discharged or cancelled.

Financial instruments are classified and

measured as follows:

Notes

2017

$'000

2016

$'000

Financial Assets

Cash and cash equivalents 10 216,185 231,196

Receivables (at amortised cost) 11 100,738 82,883

Total Financial Assets 316,923 314,080

Financial Liabilities

Payables (at amortised cost) 14 42,328 39,233

Total Financial Liabilities 42,328 39,233

Financial risk management

TAFE Queensland has an exposure to a variety of financial risks, including credit risk, liquidity risk and market risk.

The TAFE Queensland Board has the overall responsibility for the establishment and oversight of the risk management framework.

The Board established the Audit, Finance and Risk Management Committee, which is responsible fordeveloping and monitoring risk

management policies. The Committee reports regularly to the Board on its activities.

48 | tafeqld.edu.au

Risk Exposure Definition ExposureMeasurement

Method

Risk Management

Strategy

Credit Risk

Credit Risk exposure

refers to the situation

where TAFE Queensland

may incur a financial

loss as a result of

another party to a

financial instrument

failing to discharge their

obligation.

TAFE Queensland is

exposed to credit risk in

respect of its receivables

(Note 11).

The maximum exposure

at balance date is the

gross carrying amount

of receivables inclusive

of any provisions for

impairment.

Ageing analysis,

earnings at risk.

The QTC Cash Capital

Guaranteed Fund is

an asset management

portfolio with

investments in a wide

variety of high credit

rating counterparts.

Deposits are capital

guaranteed. Cash is

held with a regulated

financial institution that

has a credit rating of at

least A+.

Liquidity Risk

Liquidity risk refers to

the situation where

TAFE Queensland may

encounter difficulty in

meeting obligations

associated with financial

liabilities that are settled

by delivering cash or

other financial asset.

TAFE Queensland is

exposed to credit risk in

respect of its payables

(Note 14).

Sensitivity analysis

TAFE Queensland

ensures that minimal

levels of cash are held

within various bank

accounts so as to

match the expected

duration of the various

employee and supplier

liabilities.

Market Risk

The risk that the fair

value or future cash

flows of financial

instrument will fluctuate

because of changes in

market prices. Market

risk comprises three

types of risk: currency

risk, interest rate risk

and other price risk.

Interest rate risk is the

risk that the fair value

or future cash flows of

a financial instrument

will fluctuate because

of changes in market

interest rates.

TAFE Queensland is

exposed to interest rate

risk through its cash

deposited through its

investments with QTC

and cash deposited

in interest bearing

accounts (Note 10).

Interest rate sensitivity

analysis

TAFE Queensland is

exposed to interest rate

risk through its cash

deposited through its

investments with QTC

and cash deposited

in interest bearing

accounts. If interest

rates were to change

by +/- 1% and with

all other variables

held constant, TAFE

Queensland would have

a surplus and equity

increase / (decrease)

of $2.172m ($2.312m

2015-16).

TAFE Queensland

does not undertake

any hedging in relation

to interest risk and

manages its risk as

per the liquidity risk

management strategy.


19. Financial instruments (continued) TAFE Queensland measures risk exposure using a variety of methods as follows:



19. Financial instruments (continued) Aging of past due but not impaired, as well as impaired financial assets are disclosed in the following tables:

Gross

Receivables

Allowance

for

Impairment

Carrying

Amount

Gross

Receivables

Allowance

for

Impairment

Carrying

Amount

Individually impaired

receivables (Aged)

2017

$’000

2017

$’000

2017

$’000

2016

$’000

2016

$’000

2016

$’000

Less than 30 days - - - 12 (10) 2

30 to 60 days - - - - - -

60 to 90 days - - - 1 (1) -

Greater than 90 days 4,002 (4,002) - 3,039 (2,233) 806

Total 4,002 (4,002) - 3,052 (2,244) 808

Ageing of past due

but not impaired receivables

2017

$’000

2016

$’000

Less than 30 days 12 5,716 1,096

30 to 60 days 1,488 711

60 to 90 days 3,263 312

Greater than 90 days 1,675 1,592

Total 12,143 3,711

Fair value

TAFE Queensland has not recognised any financial assets or financial liabilities at fair value, except for cash and cash

equivalents. The fair value of receivables and payables is assumed to approximate the value of the original transaction,

less any allowance for impairment.

50 | tafeqld.edu.au


20. Budget vs actual comparison

Statement of Comprehensive Income

Budget

2017

Actual

2017

Variance

2017

Variance

2017

$'000 $'000 $'000 % of Budget

Income

Sales of goods and services 438,283 278,328 (159,955) (36.5%)

Grants and contributions 222,736 396,144 173,408 77.9%

Other revenue 12,823 12,689 (134) (1.0%)

Total Income 673,842 687,161 13,319 2.0%

Expenses

Employee expenses 397,414 397,965 551 0.1%

Supplies and services 238,957 250,239 11,282 4.7%

Grants and subsidies 4,479 1,889 (2,590) (57.8%)

Depreciation and amortisation 12,916 12,013 (903) (7.0%)

Other expenses 3,857 5,093 1,236 32.0%

Total expenses 657,623 667,201 9,578 1.5%

Operating result 16,219 19,960 3,741 23.1%

Other Comprehensive Income

Increase (decrease) in asset revaluation surplus - 58 58 100%

Total comprehensive income - 58 58 100%

Total comprehensive income for the year 16,219 20,018 3,799 23.4%



20. Budget vs actual comparison (continued)

Explanation of major variances:

Sales of goods and services

The variance against sales of goods and services mainly relates the reclassification of the government

subsidised component of course fees to Grants and contributions ($147.3m).

The remaining variance mainly relates to student fees and charges. Revenues from student fees and charges

are impacted by a number of factors including the number of students, the course studied, the eligibility of

students to receive Queensland government subsidies (with the subsidy component of the fee classified as

a contribution). During the budget process TAFE Queensland splits total estimated revenue from course fees

across the various revenue categories based on historical and current enrolment patterns, factoring in current

TAFE Queensland strategies, targeted growth areas and other relevant impacts from the VET landscape.

In 2016-17, while overall student numbers remained constant TAFE Queensland experienced a 5% drop in the

number of full fee paying students. This had a resulting impact on which category of revenue course fees are

recognised. The 2016-17 budget also targeted a strong growth in international students studying on-shore

which was not achieved.

Grants and contributions

The variance in grants and contributions is mainly due to the reclassification of the government subsidised

component of course fees ($147.3m), receipt of a one off maintenance grant from DET ($5.0m), the recognition

of DET’s contribution towards the fit out of SCHI on behalf of TAFE Queensland ($7.0m), and higher than

budgeted Queensland government subsidised training revenue ($9.4m).

Revenues from Queensland government subsidised training are impacted by a number of factors including

the number of students, the course studied, the eligibility of students to receive a subsidy, and the amount

of the subsidy offered (refer also to note on sales of goods and services above). The increase in Government

subsidised training revenue has also been impacted by strong demand for courses offered under the Rescuing

TAFE program.

Supplies and services

The variance in supplies and services is mainly driven by additional maintenance expenditure relating to the one

off maintenance grant from DET ($4.2m), minor equipment and other project costs relating to SCHI ($1.8m), and

APTC scholarship expenditure original budgeted for under grants and subsidies ($3.9m).

52 | tafeqld.edu.au



Statement of Financial Position

Budget

2017

Actual

2017

Variance

2017

Variance

2017

$'000 $'000 $'000 % of Budget

Current assets

Cash and cash equivalents 213,615 216,185 2,709 1.2%

Receivables 59,505 100,738 41,233 69.3%

Inventories 517 852 335 64.8%

Other current assets 5,738 8,039 2,301 40.1%

Total current assets 279,375 325,813 46,578 16.6%

Non-current assets

Property, plant and equipment 40,334 42,089 1,755 4.4%

Intangible assets 40,213 28,101 (12,112) (30.1%)

Total non-current assets 80,547 70,190 (10,357) (12.9%)

Total assets 359,922 396,003 36,221 10.0%

Current liabilities

Payables 33,607 42,328 8,861 26.0%

Employee benefits 15,522 18,967 3,445 22.2%

Other current liabilities 36,795 44,501 7,706 20.9%

Total current liabilities 85,924 105,796 20,012 23.1%

Total liabilities 85,924 105,796 20,012 23.1%

Net assets 273,998 290,207 16,209

Equity

Contributed equity 169,040 170,096 1,056 0.6%

Retained earnings 104,958 119,986 15,028 14.3%

Asset revaluation reverse - 125 125

Total equity 273,998 290,207 16,209 5.9%




Explanation of major variances:

Receivables The variance in receivables relates mainly to accrued revenue relating to government subsidised training. In

2015-16 TAFE Queensland commenced recognising receivables for Queensland government subsidised training

revenue for training commenced but not completed as at 30 June. The value of this receivable as at 30 June

2017 is $27.1m.

Changes to state and commonwealth government funding arrangements in the VET sector in recent years have

also resulted in changes to the receivable profile for TAFE Queensland. Some of the changes have resulted in

higher contributions required by students and organisations which has seen an increase in overall receivables

(including students entering payment plan arrangements). This is compounded by state and commonwealth

funding arrangements often resulting in payments occurring in arrears. The 2016-17 budget was set before the

full impact of these changes were understood.

Intangible Assets

The variance in intangible assets is mainly due to timing of the implementation of the new student management

system, and lower than budgeted spend on master product development activities.

Payables Payables have been impacted by a high level of maintenance activity conducted towards the end of the financial

year (predominantly due to additional funding provided by DET) resulting in a higher level of invoices not yet due

for payment and accruals for services provided but not yet invoiced at year end. Accruals relating to a number

of projects as well as the timing of invoicing arrangements under a new ICT support arrangement have also

resulted in an increase in payables at year end.

Other current liabilities

The increase in other current liabilities mainly relates to unearned revenue relating to training in progress or yet to

commence ($7.2m). The amount of unearned revenue recognised at year end is impacted by timing of course

start and completion dates as well as the payment options for the course (e.g. upfront payment, payment

plans).

Retained earning

The variance in retained earnings mainly relates to a prior period adjustment performed in 2015-16 financial

statements relating to the recognition of Queensland government subsidised training revenue for training

commenced but not competed as at 30 June ($14.2m).

54 | tafeqld.edu.au


Statement of Cash Flows

Budget

2017

Actual

2017

Variance

2017

Variance

2017

$'000 $'000 $'000 % of Budget

Cash flows from operating activities

Sales of goods and services 448,502 293,420 (155,082) (34.6%)

Grants and contributions 222,736 374,708 151,972 68.2%

GST input tax credits from ATO 19,738 24,260 4,522 22.9%

Interest received 6,101 4,780 (1,321) (21.7%)

Other receipts 6,722 6,640 (82) (1.2%)

Employee expenses (397,280) (401,898) (4,618) 1.2%

Supplies and services (258,724) (268,938) (10,214) 3.9%

Grants and subsidies (4,479) (1,889) 2,590 (57.8%)

GST remitted to ATO (9,177) (11,774) (2,597) 28.3%

Other payments (3,648) (2,414) 1,234 (33.8%)

Net cash provided by (used in)

operating activities30,491 16,896 (13,596) (44.6%)

Cash flows from investing activities

Sales of property, plant and equipment - 50 50 -

Payments for property, plant and equipment (18,000) (13,110) 4,890 (27.2%)

Payments for intangibles (21,179) (18,848) 2,331 (11.0%)

Net cash provided by (used in)

investing activities(39,179) (31,907) 7,272 (18.6%)

Net increase (decrease) in cash and cash equivalents (8,688) (14,872) (6,324) 72.8%

Cash and cash equivalents at beginning of financial year 222,303 231,196 8,893 4.0%

Cash and cash equivalents at end of

financial year213,615 216,185 2,570 1.2%


Explanation of major variances (note: refer also to explanations of major variances

for Statement of Comprehensive Income and Statement of Financial Position):

Payments for property, plant and equipment

The decrease in payments for property, plant and equipment mainly relates to a provision for fit outs and

emerging requirements that was not utilised during the year ($3.0m)

Payments for intangibles

The variance in payments for intangible assets mainly relate to a lower than budgeted spend on the

development of master product.



Details of remuneration for each Board Member are:

2017

Remuneration $

2016

Remuneration $

Annabel Dolphin (from 01/12/16) 30,050 -

Shaun Coffey (from 01/12/16) 21,668 -

Louise Cox (from 01/12/16) 21,668 -

Peter Dowling 38,713 38,194

Noela L’Estrange (from 01/12/16) 21,668 -

Peter Price 21,668 -

Deborah Wilson (from 01/12/16) 39,577 -

Warren Tapp (to 30/11/16) 26,971 60,019

Anita Brown (to 30/11/16) 16,988 38,194

Darrell Butcher (to 30/11/16) 16,962 38,194

Elizabeth Honeycombe (to 30/11/16) 16,988 38,194

Vivienne Mallinson (to 30/11/16) 16,988 38,194

Total 293,909 250,989

21. Key management personnel(a) Ministerial remuneration

As from 2016-17, TAFE Queensland’s

responsible Minister is identified as part

of TAFE Queensland’s Key Management

Personnel (KMP), consistent with

additional guidance included in the

revised version of AASB 124 Related Part Disclosures. That Minister is Yvette D’ath,

Attorney-General and Minister for Justice

and Minister for Training and Skills.

Ministerial remuneration entitlements are

outlined in the Legislative Assembly of

Queensland’s Member’s Remuneration

Handbook. TAFE Queensland does

not bear any cost of remuneration of

Ministers. The majority of Ministerial

entitlements are paid by the Legislative

Assembly, with the remaining entitlements

being provided by Ministerial Services

Branch within the Department of Premier

and Cabinet. As all Ministers are reported

as KMP of the Queensland Government,

aggregate remuneration expenses for all

Ministers is disclosed in the Queensland

General Government and Whole of

Government Consolidated Financial

Statements as from 2016-17, which

are published as part of Queensland

Treasury’s Report on State Finances.

(b) Board Members

On 15 August 2013, the first TAFE

Queensland Board was appointed by the

Queensland Governor-in-Council. Each of

the initial board members were appointed

until 30 November 2016. Current Board

members were appointed on 1 December

2016.

Board Members’ fees include fees paid

for membership of TAFE Queensland’s

Board and relevant Board committees.

In accordance with Queensland

Government policy, as a public sector

employee, Mr Peter Price did not receive

any remuneration as a TAFE Queensland

board member during 2015-16. Following

a change in policy, Mr Price received

remuneration from 1 December 2016.

(c) Board Members’ transactions

A number of the Board Members

hold positions in other entities that

may result in them having control or

significant influence over the financial

or operating policies of those entities.

AASB 124 Related Party Disclosures

requires a range of disclosures about

the remuneration of key management

personnel, transactions with related

parties/entities, and relationships between

parent and controlled entities. TAFE

Queensland has not conducted business

in the 2016-17 financial year with related

parties of any Board Members (2015-16

Nil).

(d) Loans to key management

personnel

None of the key management personnel

have personal loans with TAFE

Queensland outstanding at 30 June

2017.

(e) Key executive management

personnel transactions

Key executive management personnel

of TAFE Queensland or their related

parties conduct transactions with TAFE

Queensland on terms and conditions no

more favourable than those available,

or which might reasonably be expected

to be available, on similar transactions

to non-related entities on an arm’s

length basis.

56 | tafeqld.edu.au


21. Key management personnel (continued)(f) Remuneration for key executive

management personnel

Key executive management personnel of

TAFE Queensland are appointed under

the TQ Act. Remuneration and other

terms of employment are formalised

in individual contracts of employment.

These contracts of employment make a

provision for an appropriate combination

of competitive fixed and variable

remuneration components. Remuneration

expenses for key management personnel

comprise the following components:

• Short term employee expenses which

include:

> Salaries, allowances and leave

entitlements earned for the year or

for that part of the year during which

the employee occupied the specified

position.

> Performance payments recognised

as an expense during the year (refer to

Note 21 (g)).

> Non-monetary benefits including

fringe benefits tax applicable to that

benefit.

• Long term employee expenses include

amounts expensed in respect of long

service leave entitlements earned.

• Post-employment expenses include

amounts expensed in respect of

employer superannuation obligations.

• Termination benefits include payments

in lieu of notice on termination and

other lump sum entitlements (excluding

annual and long service leave

entitlements) payable on termination of

employment or acceptance of an offer

of termination of employment.

(g) Performance payments

The variable component of remuneration

is provided to executive managers

through an annual incentive performance

scheme. The scheme is designed to

effectively reward a combination of

key outcomes in excess of meeting

business goals and targets, and

networked leadership behaviours. The

performance payment is contingent upon

TAFE Queensland achieving the Board-

approved operating margin result, and

the individual satisfying the performance

expected in their role. Performance

payments may not exceed a maximum

of twenty per cent of the CEO’s total

remuneration package and fifteen

per cent of all other key management

personnel’s total remuneration package.

Performance assessments occur after

the end of the financial year and consist

of:

• Assessment against both TAFE

Queensland and business unit

measures and targets; and

• Assessment of the individual’s

network leadership behaviours.

These assessments include both peer

assessment and CEO assessments.

Payment of performance bonuses

occurs in the year following actual

performance. As at the date these

statements were certified by

management, the performance

assessment process for 2016-17 was

not yet finalised.

Details of key management personnel

The following details for KMP reflect those positions that had

authority and responsibility for planning, directing and controlling the

activities of TAFE Queensland during 2016-17 and 2015-16.

Position Position Responsibility

Chief Executive OfficerStrategic and operational management of

TAFE Queensland.

Chief Operating OfficerOperational performance and the translation of

organisational strategy into operational plans.


Financial strategy and planning, financial

systems and reporting functions, financial

policies and procedures, procurement

functions, and the evaluation of investment

decisions.

Chief Information Officer

Information and communications technology

(ICT) strategy development, ICT contract

management and procurement functions and

ICT operational services.

Chief Academic Officer

Academic strategy, teaching governance,

learning and quality, and digital product

services.

Chief Human Resources Officer Strategic Human Resources direction and

delivery of Human Resources services.

Regional General Managers

Directing the activities at TAFE Queensland

campuses in each region in alignment with

TAFE Queensland’s commercial and strategic

direction.



21.

Key M

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Pers

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asis

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in t

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tate

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pre

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2 w

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and

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18

58 | tafeqld.edu.au

1.

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52

415

-

21.

Key M

anag

em

ent

Pers

onnel (c

ontinued

)2015-1

6


22. Related party transactionsTransactions with people / entities

related to KMP

Related Party Declarations have been

received from KMP with no material

amounts required to be reported.

Transactions with other Queensland

Government – controlled entities

TAFE Queensland’s primary ongoing

sources of funding from Queensland

Government for its services are grants

and contributions (Note 6) via DET.

TAFE Queensland received a transfer

of $1.3m for plant and equipment and

portable and attractive items at training

sites from DET via Minister D’Ath’s

approval on 5 March 2017.

Transactions with SCHI (joint

arrangement) and TQIE (controlled

entity) are disclosed in Notes 3 and 4

respectively.

23. New and revised

accounting standard

TAFE Queensland did not voluntarily

change any of its accounting policies

during 2016-17.

Australian Accounting Standard AASB 124 Related Party Disclosures has

been adopted for the 2016-17 year as

required by Queensland Treasury. This

accounting standard requires a range of

disclosures about the remuneration of key

management personnel, transactions with

related parties/entities, and relationships

between parent and controlled entities.

The most significant implications of AASB

124 for TAFE Queensland’s financial

statements will be the disclosures to be

made about transactions with related

parties, including transactions with

key management personnel or close

members of their families.


24. Future impact of accounting standards not yet effective

At the date of authorisation of the financial report, the expected impacts of new or amended Australian Accounting Standards with

future commencement dates are as set out below.

25. Events occurring after balance date

There were no events or transactions that arose between the end of the financial year and the date of this report that were

of a material or unusual nature that would significantly affect the operations of TAFE Queensland.

Reporting periods

beginning

on / after

AASB 15 Revenue from Contracts with Customers

This standard contains more detailed requirements for the accounting for certain types of revenue

from customers. Depending on the specific contractual terms, the new requirements may

potentially result in a change to the timing of revenue from sales of TAFE Queensland’s goods

and services. TAFE Queensland is yet to complete its analysis of current arrangements for sale

of its goods and services, but at this stage does not expect a significant impact on its present

accounting practices.

1 January 2018

AASB 9

AASB 2014-7

Financial Instruments (December 2014)

Amendments to Australian Accounting Standards arising from AASB 9 (December 2014)

The main impacts of these standards are that they will change the requirements for the

classification, measurement and disclosures associated with financial assets. Under the new

requirements, financial assets will be more simply classified according to whether they are

measured at either amortised cost or fair value. This change is not currently expected to have a

material impact on TAFE Queensland’s financial statements.

1 January 2018

AASB 16 Leases

AASB 16 introduces a single lease accounting model for lessees. Lessees will be required to

recognise a right-of-use asset (representing rights to use the underlying leased asset) and a liability

(representing the present value of lease payments during the lease term that are not yet paid) for all

leases with a term of more than 12 months, unless the underlying assets are of low value.

The right-of-use asset will be initially recognised at cost, consisting of the initial amount of

the associated lease liability, plus any lease payments made to the lessor at or before the

commencement date, less any lease incentive received, the initial estimate of restoration costs

and any initial direct costs incurred by the lessee. The right-of-use asset will give rise to a

depreciation expense.

AASB 16 allows for a choice of transitional accounting methods. TAFE Queensland will await

further guidance from Queensland Treasury on the transitional accounting method to be applied.

TAFE Queensland has not yet quantified the impact on the Statement of Comprehensive Income

or the Statement of Financial Position of applying AASB 16 to its current operating leases,

including the extent of additional disclosure required.

1 January 2019

All other Australian Accounting Standards and interpretations with future commencement dates are either not applicable to TAFE Queensland’s

activities, or have no material impact on TAFE Queensland.


60 | tafeqld.edu.au

MANAGEMENT CERTIFICATEfor the year ended 30 June 2017

These general purpose financial statements have been prepared pursuant to section 62(1) of the Financial Accountability Act 2009 (the Act), relevant sections of the Financial and Performance Management Standard 2009 and other prescribed requirements. In

accordance with section 62(1)(b) of the Act we certify that in our opinion:

(a) the prescribed requirements for establishing and keeping the accounts have been complied with in all material respects;

and

(b) the statements have been drawn up to present a true and fair view, in accordance with the prescribed accounting

standards, of the transactions of TAFE Queensland for the financial year ended 30 June 2017, and of the financial

position of TAFE Queensland at the end of that year.

(c) these assertions are based on an appropriate system of internal controls and risk management processes being effective,

in all material respects, with respect to financial reporting throughout the reporting period.

Annabel Dolphin Jodi Schmidt

Board Chair Chief Executive Officer

TAFE Queensland TAFE Queensland

Date: 23 August 2017 Date: 23 August 2017

Andrew Stuart-Murray


TAFE Queensland

Date: 23 August 2017


INDEPENDENT AUDITOR’S REPORTfor the year ended 30 June 2017

62 | tafeqld.edu.au

64 | tafeqld.edu.au

A

Apprenticeship

A system of training, regulated by law

or custom, which combines on-the-

job training and work experience with

formal off-the-job training, while in paid

employment.

Australian Qualifications Framework

A comprehensive nationally-consistent

framework incorporating all qualifications

recognised in post-compulsory education

throughout Australia. The framework

identifies six levels in the VET sector:

Certificate I, Certificate II, Certificate III,

Certificate IV, Diploma and Advanced

Diploma.

B

Back to Work

The Back to Work Regional Employment

Package is a Queensland Government

two-year $150 million initiative designed

to give businesses confidence to employ

regional jobseekers. The program offers

Employer Support and Youth Boost

Payments to employers who meet

program eligibility criteria.

F

Full-time Equivalents (FTEs)

A representative number that is calculated

by assessing the hours worked over the

financial year by all full-time and part-

time employees, and converting this to a

corresponding number of employees as if

all staff were full-time.

H

HECS-HELP

Is a loan scheme to help eligible

Commonwealth supported students to

pay their student contribution amounts

through a loan or upfront discounts.

Before 2005, this was known as ‘HECS’.

I

Information and Communication

Technologies (ICT)

An umbrella term that describes the use

of all technologies in the manipulation and

communication of information.

N

National Partnership Agreement

An agreement between the

Commonwealth and the states and

territories to facilitate coordination,

monitoring and delivery of strategies to

improve service delivery.

R

Registered Training Organisation (RTO)

An organisation registered to deliver and

assess nationally recognised VET.

Rescuing TAFE

The Queensland Government’s Rescuing

TAFE initiative provides funding of $22.8m

over three years from 2015-16 to 2017-

18 to TAFE Queensland. The funding

gives Queenslanders access to more

subsidised training places and greater

learning support at TAFE Queensland

locations across the state. The agreement

deliverables include;

• Investing in student support services;

• Providing foundation skills courses

for disadvantaged learners;

• Increasing courses available under

VET in Schools;

• Expanding and improving regional

support programs;

• Subsidising second chance training

opportunities

• Creating new full time equivalent

positions.

S

Strategic Plan

The document provides TAFE

Queensland’s purpose and direction.

It outlines overall objectives (including

contributions to whole-of-government

objectives, ambitions and targets)

and how it will know if it has achieved

those agency objectives (performance

indicators).

U

Unique Student

A unique student is a term used to count

physical students across a particular

metric.

User Choice

The User Choice program provides a

public funding contribution towards

the cost of training and assessment for

eligible Queensland apprentices and

trainees.

The program provides the flexibility for

apprentices, trainees and their employers

to select a preferred RTO from a list

of pre-qualified suppliers (PQS) for the

delivery of accredited training to meet

their specific needs.

V

VET FEE-HELP (VFH)

VET FEE HELP is an income contingent

loan scheme available to assist eligible

students studying higher level VET

qualifications to pay their tuition fees.

Higher level VET qualifications are at the

diploma level and above.

VET in Schools (VETiS)

A funding program administered by the

DET designed to assist Queensland

school students to acquire skills and

knowledge required for specific industries

as part of their school studies.

VET Student Loans (VSL)

The VET Student Loans program is an

income contingent loan offered by the

Australian Government that helps eligible

students pay for some VET diploma

level or above courses. VET Student

Loans commenced on 1 January 2017,

replacing the VFH scheme, which ceased

on 31 December 2016.

Vocational Education and Training

(VET)

Post-compulsory education and training

which provides people with occupational

or work-related knowledge and skills.

GLOSSARY OF TERMS


Acronyms and Abbreviations

A

AQF Australian Quality Framework

D

DET Department of Education and Training

F

FTE Full-Time Equivalent

I

ICT Information and Communication Technology

K

KMP Key Management Personnel

R

RTO Registered Training Organisation

S

SMS Student Management System

T

TQ ACT TAFE Queensland Act 2013

V

VET Vocational, Education and Training

VSL VET Student Loans

VFH VET FEE-HELP

VETiS VET in Schools

66 | tafeqld.edu.au

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ANNUAL REPORT - TAFE Queensland SkillsTech · 2018-03-13 · 8 September 2017 The Honourable Yvette...

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Transcript of ANNUAL REPORT - TAFE Queensland SkillsTech · 2018-03-13 · 8 September 2017 The Honourable Yvette...