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Tertiary Education Quality and Standards Agency

Entity resources and planned performance

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TERTIARY EDUCATION QUALITY AND STANDARDS AGENCY

Section 1: Entity Overview and Resources............................................................2031.1 Strategic Direction Statement......................................................................2031.2 Entity Resource Statement..........................................................................2061.3 Budget Measures.........................................................................................207

Section 2: Outcomes and Planned Performance..................................................2082.1 Outcomes and Performance Information.....................................................208

Section 3: Explanatory Tables and Budgeted Financial Statements...................2123.1 Explanatory Tables......................................................................................2123.2 Budgeted Financial Statements...................................................................213

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Portfolio Glossary and Acronyms

TERTIARY EDUCATION QUALITY AND STANDARDS AGENCY

Section 1: Entity Overview and Resources

1.1 STRATEGIC DIRECTION STATEMENT

The Tertiary Education Quality and Standards Agency (TEQSA) is Australia’s national higher education quality assurance and regulatory agency. TEQSA was established under the Tertiary Education Quality and Standards Agency Act 2011 (the Act) and commenced regulatory functions on 29 January 2012.

The Act confers powers and functions on TEQSA to:

register regulated entities as registered higher education providers and accredit courses of study

conduct compliance assessments and quality assessments conduct accreditation assessments of accredited courses provide advice and make recommendations to the Minister on matters

relating to the quality or regulation of higher education providers collect, analyse, interpret and disseminate information relating to quality

assurance practice and quality improvement in higher education cooperate with similar agencies in other countries.TEQSA also has responsibility, as a designated authority under the Education Services for Overseas Students Act 2000, for English Language Intensive Course for Overseas Students providers if they have an entry arrangement with a registered higher education provider, and for Foundation Programme providers.

TEQSA’s strategic prioritiesTEQSA’s vision is to be recognised in Australia and internationally for its effective, responsive and risk-reflective approach to standards based quality assurance.

In pursuit of this vision, key strategic priorities are identified for action over the next triennium, including:

protect the quality of Australian higher education and its reputation domestically and overseas

deliver efficient, effective and responsive quality assurance203

Portfolio Glossary and Acronyms

continue to develop organisational capability and maximise organisational efficiency.

These priorities will be addressed by further enhancement of TEQSA’s annual risk assessments and increased flexibility of approaches to provider assessment. The successful case management model will be maintained and emphasis will continue to be placed on engagement and communication with higher education providers.

Changes to the ActThe then Minister for Education introduced the Tertiary Education Quality and Standards Agency Amendment Bill 2014 on 27 February 2014 to enable TEQSA to implement more efficient and effective processes around its provider registration and course accreditation functions. The Bill was passed by Parliament on 4 December 2014 and enables TEQSA to:

improve its operational efficiency through greater delegation of its functions and powers to single commissioners and to TEQSA staff, increasing the scope for providers to seek internal review of decisions made under delegation from TEQSA

extend, on its own initiative, the period of registration and accreditation to support more efficient quality assurance practices and help reduce the burden on providers.

The amendments also separate the roles of Chief Executive Officer and Chief Commissioner to allow the Chief Executive Officer to focus on the management and administration of TEQSA and the Chief Commissioner to focus on delivering timely provider registration and course accreditation decisions.

TEQSA’s development and progressDuring 2014–15, with input from the TEQSA Advisory Council and the higher education sector, TEQSA has continued to review its key processes including a reduced scope of assessment for renewal of registration processes and streamlined evidentiary requirements of providers when preparing applications for renewal of registration, course accreditation and renewal of accreditation.

In addition, the agency significantly remodelled its risk assessment framework, following sector wide consultation. This has reduced the burden on higher education providers by using risk assessments to inform a differentiated approach to evidence and reporting requirements in assessment processes (e.g. for renewal of registration and course accreditation applications).

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TEQSA Budget Statements

TEQSA introduced a ‘Core +’ model for renewal of registration processes (and partially for course accreditation) that substantially reduced evidence requirements and application assessment times for low risk providers.

TEQSA proposes to further reduce evidence requirements for many providers and is currently consulting with the higher education sector on further developing this risk-based model to extend it fully to course accreditation for existing providers.

Key improvements also include a simplified design of the risk assessment framework, focusing on students, staff, finance and regulatory history, greater flexibility for different provider models, and improved information for providers. TEQSA significantly reduced the data collection requirements in 2014 and exempted universities from the information collection on the basis that all information required from them by TEQSA is available through the Department of Education and Training’s Higher Education Information Management Systems (HEIMS). TEQSA is working with the Department of Education and Training to identify potential areas for further rationalisation of provider information collection and reporting as part of the development of an integrated higher education data collection.

TEQSA introduced a provider portal in the first half of 2014 to allow higher education providers to lodge applications online. In the second half of 2014, this was extended to external experts to facilitate interaction with TEQSA online and for providers to lodge the 2014 provider information requirements.

The ongoing streamlining of quality assurance processes introduced in 2014–15 continues to encourage a culture of self-assurance by providers and aim to reduce:

reporting requirements for all higher education providers duplication of requirements across regulatory bodies time taken to make quality assurance assessments.

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1.2 ENTITY RESOURCE STATEMENT

Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.

Table 1.1: Tertiary Education Quality and Standards Agency resource statement —Budget estimates for 2015–16 as at Budget May 2015

Actual Available

Appropriation2014–15

$'000

Estimate of prior year amounts

available in 2015–16

$'000

Proposed at 2015–16

Budget

$'000

Total 2015–16 estimate

$'000Ordinary annual services (a)

Departmental appropriationPrior year appropriations (b) 6,768 - - -Departmental appropriation (c) 16,501 5,700 12,328 18,028s74 Retained revenue receipts (d) 15 15 15 30

Total 23,284 5,715 12,343 18,058

Total ordinary annual services [A] 23,284 5,715 12,343 18,058

Other services (e)

Departmental non-operatingPrior year appropriations (b) - - - -Equity injections - - - -

Total - - - -

Total other services [B] - - - -Total available annual appropriations [A+B] 23,284 5,715 12,343 18,058

Actual Available

Appropriation2014–15

$'000

Estimate of prior year amounts

available in 2015–16

$'000

Proposed at 2015–16

Budget

$'000

Total 2015–16 estimate

$'000Special appropriationsSpecial appropriations limited by criteria/entitlement

Public Governance, Performance and Accountability Act 2013 - s77 (f) 200 - 200 200

Total special appropriations [C] 200 - 200 200Total appropriations excluding special accounts

23,484 5,715 12,543 18,258

Total resourcing [A+B+C] 23,484 5,715 12,543 18,258

Total net resourcing for TEQSA 23,484 5,715 12,543 18,258(a) Appropriation Bill (No. 1) 2015–16.(b) Estimated adjusted balance carried forward from previous year. (c) Includes an amount of $0.893m for the Departmental Capital Budget (refer to table 3.2.5 for further

details). For accounting purposes this amount has been designated as ‘contributions by owners’. (d) Estimated retained revenue receipts under section 74 of the PGPA Act. (e) Appropriation Bill (No. 2) 2015–16. (f) Repayments not provided for under other appropriations. Amounts received on or before 30 June 2014

were repaid under section 28 of the Financial Management and Accountability Act 1997.Note: All figures are GST exclusive.

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1.3 BUDGET MEASURES

Budget measures relating to TEQSA are detailed in Budget Paper No. 2 and are summarised below:

Table 1.2: Entity 2015–16 Budget measuresPart 2: MYEFO measures not previously reported in a portfolio statement

Programme2014–15

$'0002015–16

$'0002016–17

$'0002017–18

$'0002018–19

$'000MeasureCommunications and Public Affairs (a) 1.1

Departmental expenses (15) (30) (30) (30) -

Total (15) (30) (30) (30) -Total measures

Departmental (15) (30) (30) (30) -

Total (15) (30) (30) (30) -(a) The Communications and Public Affairs target savings was announced in the 2014–15 BudgetPrepared on a Government Finance Statistics (fiscal) basis

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Section 2: Outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programmes are the primary vehicle by which Government entities achieve the intended results of their outcome statements. Entities are required to identify the programmes which contribute to Government outcomes over the Budget and forward years.

Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of TEQSA in achieving Government outcomes.

Outcome 1: Contribute to a high quality higher education sector through streamlined and nationally consistent higher education regulatory arrangements; registration of higher education providers; accreditation of higher education courses; and investigation, quality assurance and dissemination of higher education standards and performance.

Outcome 1 strategyTEQSA has one outcome. TEQSA will work to achieve this outcome by:

delivering effective and timely regulation reinforcing protection for students undertaking an Australian higher

education award supporting the capacity of all providers to quality assure their delivery of

higher education continuing to strengthen and streamline TEQSA’s approach to quality

assurance and regulation consulting with peak bodies, higher education providers, the Higher

Education Standards Panel and other key stakeholders to promote shared understanding

continuing to strengthen information sharing arrangements with relevant agencies and organisations

maximising TEQSA’s operational efficiency.TEQSA contributes to building a national higher education system that meets Australia’s future needs for an educated and skilled population, and

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maintains Australia’s international reputation for providing quality higher education in a demand-driven system.

Recognising the significant budget reductions in 2014–15 and forward years, TEQSA will continue to review its operations to ensure that its quality assurance and regulation activities are undertaken in the most efficient way possible, maintaining high levels of quality, in order to minimise any impact on Outcome 1.

Outcome expense statement

Table 2.1 provides an overview of the total expenses for Outcome 1 by programme.

Table 2.1: Budgeted Expenses for Outcome 1Outcome 1: Contribute to a high quality higher education sector through streamlined and nationally consistent higher education regulatory arrangements; registration of higher education providers; accreditation of higher education courses; and investigation, quality assurance and dissemination of higher education standards and performance.

2014–15Estimated

actual expenses

$'000

2015–16Estimated expenses

$'000

Programme 1.1: Regulation and Quality AssuranceDepartmental expenses

Departmental appropriation (a) 15,623 11,476Expenses not requiring appropriation in the Budget year (b) 1,702 1,123

Total for programme 1.1 17,325 12,599Outcome 1 Totals by appropriation typeDepartmental expenses

Departmental appropriation (a) 15,623 11,476Expenses not requiring appropriation in the Budget year (b) 1,702 1,123Total expenses for Outcome 1 17,325 12,599

2014–15 2015–16 Average staffing level (number) 71 60(a) Departmental Appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue

from independent sources (s74).(b) Expenses not requiring appropriation in the Budget year are made up of Depreciation Expenses,

Amortisation Expenses and Audit Fees.Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of

the budget year as government priorities change.

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Programme 1.1: Regulation and Quality Assurance

Programme objective

The objectives for this programme are to:

assure the quality of Australian higher education through a standards based and risk based approach to quality assurance

protect students by requiring providers to meet minimum standards for quality higher education provision in an expanding higher education system

facilitate higher education providers to pursue their individual missions, and encourage diversity, excellence and innovation in the sector.

Programme expenses

The 2014–15 Budget significantly reduced funding for TEQSA for 2014–15 and forward years. The reduction for 2015–16 is approximately $4.15 million, a 27 per cent reduction on 2014–15 funding.

Programme expenses 1.1 Regulation and Quality Assurance2014–15

Estimated actual$'000

2015–16Budget

$'000

2016–17 Forward estimate

$'000


$'000

2018–19Forward estimate

$'000

Annual departmental expenses:Departmental item

Programme support 15,623 11,476 8,967 8,971 9,034Expenses not requiring appropriation in the Budget year (a) 1,702 1,123 1,067 1,228 869

Total programme expenses 17,325 12,599 10,034 10,199 9,903(a) Expenses not requiring appropriation in the Budget year are made up of Depreciation Expenses,

Amortisation Expenses and Audit Fees.

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Programme 1.1 deliverables

a robust quality assurance framework decision making guided by the three principles of necessity, reflecting

risk and proportionality streamlined processes and improved timelines for decision making

taking into account risk and provider history provision of timely and relevant information to providers in relation to

their obligations under the TEQSA Act and the Education Services for Overseas Students (ESOS) Act 2000

increased awareness of TEQSA’s roles and responsibilities in the community

enhanced organisational capability and operational efficiency.

Programme 1.1 key performance indicators

The key performance indicators for this outcome are:

high levels of compliance by higher education providers with the Higher Education Standards Framework and relevant ESOS requirements

improved levels of self-assurance among higher education providers high stakeholder confidence in TEQSA meeting its objectives TEQSA consistently meets its service targets.

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Section 3: Explanatory Tables and Budgeted Financial StatementsSection 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of entity finances for the 2015–16 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme expenses, movements in administered funds, special accounts and government Indigenous expenditure.

3.1 EXPLANATORY TABLES

3.1.1 Movement of administered funds between yearsTEQSA has no movement of funds to report therefore table 3.1.1 is not presented.

3.1.2 Special accountsTEQSA has no special accounts therefore table 3.1.2 is not presented.

3.1.3 Australian Government Indigenous ExpenditureThe 2015–16 Australian Government Indigenous Statement is not applicable because TEQSA has no Indigenous specific expenses.

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3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Differences in entity resourcing and financial statementsTEQSA’s resourcing statement in table 1.1 is directly comparable to the budgeted financial statements.

3.2.2 Analysis of budgeted financial statements

Departmental financial statements

An analysis of TEQSA’s budgeted financial statements for 2015–16 is provided below.

Budgeted departmental income statement

TEQSA is budgeting for a deficit equal to the unappropriated depreciation and amortisation expenses in 2015–16 and the three forward years.

Total expenses for 2015–16 are estimated to be $12.599 million, a reduction of $4.726 million from the 2014–15 estimated actual.

Revenue from Government for 2015–16 is budgeted at $11.461 million. TEQSA’s funding for 2015–16 is reduced by 27 per cent from the 2014–15 levels.

Budgeted departmental balance sheet

TEQSA has a budgeted net asset position of $4.494 million in 2015–16.

Total assets for 2015–16 are estimated to be $9.005 million, comprising $5.344 million in financial assets and $3.661 million in non-financial assets.

Total liabilities for 2015–16 are estimated to be $4.511 million, with the primary liabilities being accrued employee entitlements which total $2.435 million, suppliers’ and other payables of $1.678 million.

Budgeted departmental statement of cash flows

The statement provides information on estimates of the extent and nature of cash flows by categorising the expected cash flows against operating, investing and financing activities.

Statement of changes in equity—summary of movement

The statement shows the expected movement of equity during the budget year.

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Administered financial statements

Schedule of budgeted income and expenses

The schedule shows the estimated revenues and expenses for programmes administered by TEQSA on behalf of the Government.

TEQSA has in place cost recovery arrangements for specified services (including registration and re-registration of providers; accreditation and re-accreditation of courses; and major variations to registrations and accreditations) to higher education providers.

All fee revenue from cost recovery arrangements is administered revenue and is returned to the Consolidated Revenue Fund. TEQSA therefore does not have any administered expenses, assets or liabilities.

Revenue

The administered revenue in 2015–16 from cost recovery arrangements is estimated to be $4.201 million.

Schedule of budgeted administered cash flows

The schedule shows the estimated cash receipts and payments administered by TEQSA on behalf of the Government.

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3.2.3 Budgeted financial statements tablesTable 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000

EXPENSESEmployee benefits 10,232 8,620 6,862 6,682 6,875Suppliers 5,439 2,904 2,153 2,337 2,207Depreciation and amortisation 1,654 1,075 1,019 1,180 821Total expenses 17,325 12,599 10,034 10,199 9,903LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 15 15 15 15 15Total own-source revenue 15 15 15 15 15GainsOther 48 48 48 48 48Total gains 48 48 48 48 48Total own-source income 63 63 63 63 63Net cost of/(contribution by) services 17,262 12,536 9,971 10,136 9,840

Revenue from Government 15,608 11,461 8,952 8,956 9,019Surplus/(deficit) attributable to the Australian Government

(1,654) (1,075) (1,019) (1,180) (821)

Total comprehensive income/(loss) (1,654) (1,075) (1,019) (1,180) (821)Total comprehensive income/(loss) attributable to the Australian Government

(1,654) (1,075) (1,019) (1,180) (821)

Note: Impact of net cash appropriation arrangements2014–15

$'0002015–16

$'0002016–17

$'0002017–18

$'0002018–19

$'000Total comprehensive income/(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations.

- - - - -

less depreciation/amortisation expenses previously funded through revenue appropriations (a) 1,654 1,075 1,019 1,180 821

Total comprehensive income/(loss) - as per the statement of comprehensive income

(1,654) (1,075) (1,019) (1,180) (821)

(a) From 2010–11, the Government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.

Prepared on Australian Accounting Standards basis.

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Table 3.2.2: Budgeted departmental balance sheet(as at 30 June)

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000

ASSETSFinancial assets

Cash and cash equivalents 173 173 173 173 160 Trade and other receivables 5,286 5,171 4,990 4,820 4,833

Total financial assets 5,459 5,344 5,163 4,993 4,993 Non-financial assets

Land and buildings 1,921 1,640 1,360 1,128 928 Property, plant and equipment 679 659 608 515 557 Intangibles 1,012 1,105 1,283 1,297 1,509 Other non-financial assets 281 257 223 203 203

Total non-financial assets 3,893 3,661 3,474 3,143 3,197 Assets held for sale

Total assets 9,352 9,005 8,637 8,136 8,190 LIABILITIESPayables

Suppliers 169 159 146 139 139 Other payables 1,548 1,519 1,417 1,234 1,234

Total payables 1,717 1,678 1,563 1,373 1,373 Provisions

Employee provisions 2,535 2,435 2,335 2,335 2,335 Other provisions 398 398 398 398 398

Total provisions 2,933 2,833 2,733 2,733 2,733 Liabilities included in disposal groups held for sale

Total liabilities 4,650 4,511 4,296 4,106 4,106 Net assets 4,702 4,494 4,341 4,030 4,084 EQUITY*Parent entity interest

Contributed equity 8,732 9,599 10,465 11,334 12,209Reserves 6 6 6 6 6Retained surplus (accumulated deficit) (4,036) (5,111) (6,130) (7,310) (8,131)

Total parent entity interest 4,702 4,494 4,341 4,030 4,084Total Equity 4,702 4,494 4,341 4,030 4,084* 'Equity' is the residual interest in assets after deduction of liabilities.Prepared on Australian Accounting Standards basis.

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Table 3.2.3: Departmental statement of changes in equity—summary of movement (Budget Year 2015–16)

Retained earnings

$'000

Asset revaluation

reserve$'000

Other reserves

$'000

Contributed equity/ capital$'000

Total equity

$'000Opening balance as at 1 July 2015

Balance carried forward from previous period (4,036) 6 - 8,732 4,702

Adjusted opening balance (4,036) 6 - 8,732 4,702Comprehensive income

Other comprehensive income - - - - -Surplus/(deficit) for the period (1,075) - - - (1,075)

Total comprehensive income (1,075) - - - (1,075)of which:

Attributable to the Australian Government (1,075) - - - (1,075)Transactions with owners

Contributions by ownersDepartmental Capital Budget (DCB) - - - 867 867

Sub-total transactions with owners - - - 867 867Transfers between equity

Transfers between equity components -Estimated closing balance as at 30 June 2016 (5,111) 6 - 9,599 4,494

Closing balance attributable to the Australian Government (5,111) 6 - 9,599 4,494


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Table 3.2.4: Budgeted departmental statement of cash flows(for the period ended 30 June)

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000

OPERATING ACTIVITIESCash received

Appropriations 15,608 11,461 8,952 8,956 9,019

Sale of goods and rendering of services 63 63 63 63 15

Net GST received 462 368 254 255 253Total cash received 16,133 11,892 9,269 9,274 9,287Cash used

Employees 9,896 8,057 6,300 6,138 6,198Suppliers 6,237 3,835 2,969 3,136 3,102

Total cash used 16,133 11,892 9,269 9,274 9,300Net cash from/(used by) operating activities - - - - (13)

INVESTING ACTIVITIESCash received

Other - - - - -Total cash received - - - - -Cash used

Purchase of property, plant and equipment 893 867 866 869 875

Total cash used 893 867 866 869 875Net cash from/(used by) investing activities (893) (867) (866) (869) (875)

FINANCING ACTIVITIESCash received

Contributed equity 893 867 866 869 875Total cash received 893 867 866 869 875Cash used

Other - - - - -Total cash used - - - - -Net cash from/(used by) financing activities 893 867 866 869 875

Net increase/(decrease) in cash held - - - - (13)

Cash and cash equivalents at the beginning of the reporting period 173 173 173 173 173

Cash and cash equivalents at the end of the reporting period 173 173 173 173 160


218


Table 3.2.5: Departmental capital budget statement2014–15

Estimated actual$'000

2015–16Budget

$'000


$'000


$'000


$'000NEW CAPITAL APPROPRIATIONS

Capital budget - Bill 1 (DCB) 893 867 866 869 875Equity injections - Bill 2 - - - - -

Total new capital appropriations 893 867 866 869 875Provided for:

Purchase of non-financial assets 893 867 866 869 875

Total Items 893 867 866 869 875PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations (a)- - - - -

Funded by capital appropriation - DCB (b)893 867 866 869 875

TOTAL 893 867 866 869 875RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLETotal purchases 893 867 866 869 875Total cash used to acquire assets 893 867 866 869 875(a) Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.(b) Does not include annual finance lease costs. Includes purchases from current and previous years’

Departmental Capital Budgets (DCBs).Prepared on Australian Accounting Standards basis.

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Table 3.2.6: Statement of asset movements (2015–16)Buildings

$'000

Other property, plant and

equipment$'000

Computer software and

intangibles$'000

Total

$'000As at 1 July 2015

Gross book value 2,586 969 1,307 4,862Accumulated depreciation/amortisation and impairment (665) (290) (295) (1,250)

Opening net book balance 1,921 679 1,012 3,612Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation equity (a) - - - -By purchase - appropriation ordinary annual services (b) 50 149 668 867Total additions 50 149 668 867Other movementsDepreciation/amortisation expense (331) (169) (575) (1,075)Disposals (c)

From disposal of entities or operations (including restructuring)

OtherTotal other movements (331) (169) (575) (1,075)

As at 30 June 2016Gross book value 2,636 1,118 1,975 5,729Accumulated depreciation/amortisation and impairment (996) (459) (870) (2,325)

Closing net book balance 1,640 659 1,105 3,404(a) ‘Appropriation equity’ refers to equity injections appropriations provided through Appropriation Bill

(No. 2) 2015–16, including CDABs.(b) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)

2015–16 for depreciation/amortisation expenses, DCBs or other operational expenses.(c) Net proceeds may be returned to the OPA. Prepared on Australian Accounting Standards basis.

220


Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000

EXPENSESTotal expenses administered on behalf of Government - - - - -

LESS:OWN-SOURCE INCOMEOwn-source revenueNon-taxation revenue

Sale of goods and rendering of services 4,062 4,201 4,201 4,201 4,201

Total non-taxation revenue 4,062 4,201 4,201 4,201 4,201Total own-source revenue administered on behalf of Government 4,062 4,201 4,201 4,201 4,201

Total own-sourced income administered on behalf of Government 4,062 4,201 4,201 4,201 4,201

Net cost of/(contribution by) services (4,062) (4,201) (4,201) (4,201) (4,201)Surplus/(deficit) before income tax 4,062 4,201 4,201 4,201 4,201

Income tax expenseSurplus/(Deficit) after income tax 4,062 4,201 4,201 4,201 4,201

Total comprehensive income/(loss) 4,062 4,201 4,201 4,201 4,201Prepared on Australian Accounting Standards basis.

221


Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)

All administered revenue is returned to the Consolidated Revenue Fund. Therefore TEQSA does not have any administered assets or liabilities and for this reason table 3.2.8 is not presented.

Table 3.2.9: Schedule of Budgeted Administered Cash Flows(for the period ended 30 June)

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000

OPERATING ACTIVITIESCash received

Sales of goods and rendering of services 4,462 4,601 4,601 4,601 4,601Cash from Official Public Account (200) (200) (200) (200) (200)

Total cash received 4,262 4,401 4,401 4,401 4,401Cash usedTotal cash used - - - - -Net cash from/(used by) operating activities 4,262 4,401 4,401 4,401 4,401

Net increase/(decrease) in cash held 4,262 4,401 4,401 4,401 4,401Cash and cash equivalents at beginning of reporting period

Cash from Official Public Account for:- Appropriations 200 200 200 200 200

Total cash from Official Public Account 200 200 200 200 200Cash to Official Public Account for:

- Appropriations (4,462) (4,601) (4,601) (4,601) (4,601)Total cash to Official Public Account (4,462) (4,601) (4,601) (4,601) (4,601)

Cash and cash equivalents at end of reporting period - - - - -


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Table 3.2.10: Administered Capital Budget Statement

TEQSA does not have any administered capital budget therefore table 3.2.10 is not presented.

Table 3.2.11: Statement of Administered Asset Movements (2015–16)

TEQSA does not have any administered assets therefore table 3.2.11 is not presented.

3.2.4 Notes to the Financial StatementsThe statements have been prepared:

on accrual accounting basis in compliance with Australian Accounting Standards and Australian

Equivalents to International Financial Reporting Standards and other authoritative pronouncements of the Australian Accounting Standards Board

having regard to Statements of Accounting Concepts.

Departmental revenue from Government

Revenue from Government represents the purchase of programmes from TEQSA by the Government.

Departmental own source revenue

Revenue from the sale of goods and services is recognised upon the delivery of the goods and services to the customers.

Departmental expenses – employee benefits

This item represents payments and entitlements owed to employees for their services rendered in the financial year.

Departmental expenses – suppliers

This item represents payments to suppliers for goods and services.

Departmental expenses – depreciation and amortisation

Property, plant and equipment assets are written off to their estimated residual values over their estimated useful lives to TEQSA using the straight-line method of depreciation. Forward estimates of depreciation expense are made using forecasts of net capital acquisitions over the forward years.

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Departmental assets – financial assets – cash

Cash includes notes and coins held and deposits at call with a bank or financial institution.

Departmental assets – financial assets – receivables

Receivables represent amounts owing to TEQSA for cash reserves held in the Official Public Account and prepayments.

Departmental assets – non-financial assets

These items represent future economic benefits that TEQSA will consume in producing outputs.

Following initial recognition at cost, property, plant and equipment are carried at fair value less accumulated depreciation. Valuations are conducted with sufficient frequency to ensure that the carrying amount does not differ materially from the assets’ fair value and reporting date.

Departmental liabilities – provisions – employees

Provision has been made for TEQSA’s liability for employee entitlements arising from services rendered by employees to date. This liability encompasses wages and salaries that are yet to be paid, annual leave and long service leave. No provision is made for sick leave.

Employee entitlements payable are measured as the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date. Liabilities expected to be settled within 12 months are measured at the nominal amount.

Departmental liabilities – payables – suppliers

Suppliers are recognised at cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having being invoiced).

Administered Items

Administered items are those that TEQSA does not control and which are subject to prescriptive rules or conditions established by legislation or Australian Government policy, in order to achieve Australian Government outcomes.

Administered revenue is fee revenue from cost recovery arrangements.

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