Annual Report 2013-14secure.statedevelopment.sa.gov.au/publications... · The 2013-14 Annual Report...

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Department of Further Education, Employment, Science and Technology

Annual Report

2013-14

P 2 DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY ANNUAL REPORT 2013-14 www.statedevelopment.sa.gov.au

P 3

The Department of Further Education, Employment, Science and Technology

ANNUAL REPORT 2013-14

P 4 DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY ANNUAL REPORT 2013-14

For further copies and enquiries please contact

DEPARTMENT OF STATE DEVELOPMENT OFFICE OF THE CHIEF EXECUTIVE

GPO Box 320

Adelaide, SA 5001

ABN: 16692317206

Telephone: +61 8 8226 3821

Facsimile: +61 8 8226 9533

The 2013-14 Annual Report is available on the department’s website at:


ISSN 1449-6437

1 JULY 2013 - 30 JUNE 2014

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01 CHIEF EXECUTIVE’S WELCOME P 1

02 HIGHLIGHTS FROM THE YEAR P 3

03 DEPARTMENT OF STATE DEVELOPMENT P 5

04 ABOUT THE DEPARTMENT P 7

4.1 Strategic directions P 7

4.2 Culture and values P 8

4.3 Strategic alignment P 8

05 PERFORMANCE SUMMARY P 11

5.1 Overview P 11

5.2 The South Australian VET system P 11

5.3 Workforce development P 12

• Skills P 12

• Employment P 18

• Higher education P 19

• International education P 21

• National partnerships P 23

• Training and Skills Commission P 25

5.4 Industry transformation P 25

• Automotive transformation P 26

• Industry growth and support P 27

• Support for retrenched workers P 27

5.5 Science and Innovation P 27

• STEM skills P 27

• Science and research P 29

• Digital productivity and technology P 31

06 ABBREVIATIONS P 33

CONTENTS

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07 APPENDICES P 35

7.1 Ministerial accountability P 35

7.2 Legislation administered by the department P 35

7.3 Account payment performance P 36

7.4 Asbestos management in government buildings P 36

7.5 Boards, committees and authorities P 36

7.6 Consultants P 37

7.7 Disability Action Plans P 37

7.8 Financial overview P 38

7.9 Greening of government operations P 41

7.10 Management of human resources P 42

7.11 Managing risk and fraud P 48

7.12 Overseas travel P 48

7.13 Reconciliation P 48

7.14 Reporting against the Carers Recognition Act 2005 P 49

7.15 Reporting against the Whistleblowers Protection Act 1993 P 49

7.16 Urban Design Charter P 50

7.17 VET student activity P 50

7.18 Website listing P 62

08 FINANCIAL STATEMENTS P 63

LIST OF FIGURES / LIST OF TABLES P 117

CONTENTS


CHIEF EXECUTIVE'S WELCOME01I am pleased to present the 2013-14 Annual Report for the Department of Further Education, Employment, Science and Technology (DFEEST).

This is the final annual report for DFEEST, as from 1 July 2014 DFEEST merged with the Department for

Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) and other agencies to form the new

Department of State Development. This new department will bring together the key areas of economic

development in one agency to help drive the ongoing economic transformation of the economy.

This is also my final report as Chief Executive of DFEEST, a position I have been honoured to hold for the

past six years.

In this final report it is worthwhile to reflect on the significant achievements and changes the department

has led over the years.

The vocational education and training (VET) system in South Australia has undergone fundamental reform,

culminating in the introduction of Skills for All in 2012.

These reforms have seen South Australia move to a position where it is now leading Australia in vocational

training on many measures.

Since its introduction on 1 July 2012, Skills for All has achieved significant success in attracting South

Australians to training. In 2013, Skills for All funded 134 900 course enrolments, a 60 per cent increase on the

84 300 course enrolments in 2012. Most pleasing was that the majority of the enrolments (67 per cent) were

at the Certificate III level or higher, the levels most likely to lead to secure, well paid employment.

South Australia has gone from being one of the most costly jurisdictions for training, in terms of cost per hour,

to now being the most efficient in the country. There has been a 44 per cent reduction in the cost per hour of

publicly funded training since 2006.

The improvement in efficiency has meant that, for the same budget, in 2013 South Australia was able to

support an extra 60 000 students in training due solely to efficiencies.

The increase in training has aligned very closely to industry demand. This is largely as a result of both the

increased responsiveness of the VET sector today and ongoing management of the courses that are funded.

In 2013-14 we also saw ongoing measures to maintain the quality of training in South Australia with both

TAFE SA and private providers reporting student satisfaction of around 90 per cent, one of the highest levels

in the country.

While South Australia has traditionally lagged Australia in terms of the proportion of the population with post

school qualifications, Skills for All has significantly stimulated much needed improvements. VET participation

for the working age population has increased from 11.3 per cent in 2008 to an estimated 14.4 per cent in 2013.

The state now exceeds the nation for the first time in terms of VET participation.

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2014 also saw the completion of the $120 million Sustainable Industries Education Centre at Tonsley, and the

completion of the $38 million Mining and Engineering Centre at Regency Park. These two flagship projects

form part of the $240 million rejuvenation of TAFE SA facilities, the biggest investment ever in training

infrastructure in South Australia.

In 2014, the Investing in Science action plan was launched following collaboration with the Premier’s Science

and Industry Council. The action plan includes over 40 initiatives that, when fully implemented, will help

support science, technology, engineering and maths and the application of research and innovation to

support the transformation of South Australia’s economy into an advanced high value economy.

A further highlight of 2014 was the launch of the Adelaide Free Wi-Fi network with the Adelaide City Council.

Adelaide now has Australia’s biggest, free Wi-Fi network for outdoor areas providing free high speed Wi-Fi to

residents, workers, businesses and visitors to the city.

As well the formation of the new department, 2014 saw the appointment of the Hon Gail Gago MLC as the

Minister for Employment, Higher Education, Skills, Science and Information Economy.

I thank DFEEST staff for their dedication as public officials and hard work during this time and the leadership

and support of Minister Gago and of Grace Portolesi before her.

Raymond Garrand Chief Executive

01 CHIEF EXECUTIVE'S WELCOME


HIGHLIGHTS FROM THE YEAR02VOCATIONAL EDUCATION AND TRAINING

• Increased the number of government funded VET students in South Australia by 22 per cent, from 123 300 in 2012 to an estimated

150 300 in 2013.

• In 2013 there were 134 900 Skills for All subsidised course enrolments, a 59 per cent (or 49 600 additional enrolments) increase on the

84 300 enrolments in 2012.

• South Australia had an estimated 15 700 apprentice and trainee commencements, and the highest number of completions on record

compared with 12 200 in 2013.

• Completed the Sustainable Industries Education Centre at Tonsley Park, and training delivery commenced in early 2014.

• Opened the Mining, Engineering and Transport Centre at TAFE SA Regency Campus in August 2013, providing a state-of-the-art facility

hub for the training of mining, engineering, advanced manufacturing, defence and transport industries.

LEARNING, WORKFORCE PARTICIPATION AND WORKFORCE DEVELOPMENT

• Over 170 projects, totalling $9.5 million, were delivered across South Australia to assist more than 8000 people develop skills for local

jobs in metropolitan and non-metropolitan regions.

• Assisted 62 companies in critical industry sectors to access training and workforce development through the Skills in the

Workplace program.

• Assisted retrenched workers in 13 companies affected by economic restructuring including GM Holden, Carl Zeiss, Detmold Packaging,

Huon Aquaculture and McCain Foods in Mount Gambier to reskill and transition to new employment.

QUALITY ASSURANCE AND REGULATORY SERVICES

• Commenced the independent validation of assessment project to verify that graduates from 14 Skills for All courses, selected on

the basis of risk, can apply their skills and knowledge in the workplace to industry standards.

• Completed comprehensive reviews of 43 Skills for All training providers to assess compliance with quality training and

contractual obligations.

• Provided 32 professional development programs to 938 VET professionals and practitioners along with onsite customised

training support and professional development for staff in 35 registered training organisations attended by 213 participants.

• Introduced a web portal to the ATLAS data management system enabling employers, apprentices and trainees to transact

business online.

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INTERNATIONAL AND HIGHER EDUCATION

• As at June 2014 there were 22 176 international student enrolments in South Australia.

• Assisted the state’s public universities win $9.1 million of competitive funding under the Australian Government’s Higher Education

Participation and Partnerships fund to support pathways to university for students from low socio-economic backgrounds.

SCIENCE AND INNOVATION

• Finalised the establishment of the Medical Research Commercialisation Fund in South Australia, committing $600 000 over four years.

• Under the Premier’s Science and Industry Fund, $3.7 million was awarded across three professorial fellowships, five International

Research Grants, six Collaboration Pathways Grants, eight Catalyst Research Grants and seven Innovation Vouchers.

• Commenced operation of the $4.15 million High Value Food Manufacturing Centre in November 2013, and in February 2014 launched

the Advanced Food Manufacturing grants program to support partnerships between food manufacturers and the South Australian

research sector.

• Launched the Investing in Science Action Plan in January 2014, to focus investment to ensure continued economic development of the

state based on research, innovation and commercialisation.

INFORMATION ECONOMY

• In partnership with the Adelaide City Council, the AdelaideFree fast Wi-Fi service was deployed across the central business district for

residents, workers and visitors.

• In partnership with the University of South Australia, developed the Student Entrepreneur Initiative to support innovative students

translate ideas into business opportunities by encouraging collaboration between students and customers to create start-ups for the

commercialisation of products, services or processes.

• Supported over 200 small to medium enterprises (SMEs) in the Riverland and Murraylands to participate in the ebizSA program which

helps them to use digital technology to improve their competitiveness, streamline their business systems and identify new markets.

• Assisted 20 participants, supported by 13 industry mentors, to complete the MEGA Digital Entrepreneurship program for the digital

content and application industries.

02 HIGHLIGHTS FROM THE YEAR


DEPARTMENT OF STATE DEVELOPMENT03

The South Australian Government has merged DFEEST, DMITRE, the Office of the Economic Development Board, Arts SA, Aboriginal

Affairs and Reconciliation, Invest SA, and Health Industry South Australia (HealthInSA) to become the Department of State Development.

The creation of the department on 1 July 2014 provides an opportunity to harness synergies around productivity, innovation, economic

development, employment, regional development and ensuring skills are closely aligned to the needs of industry.

The establishment of the Department of State Development allows for a more collaborative approach on a range of matters that were

previously the responsibility of DFEEST, DMITRE, the Department of the Premier and Cabinet and SA Health. These include:

• support for the automotive sector

• innovation and commercialisation initiatives

• science, technology, engineering and maths (STEM) skills

• skilled migration

• centres of excellence in resources and manufacturing

• the growing resources and energy portfolio

• advanced manufacturing, and

• investment attraction.

Aboriginal Affairs and Reconciliation will continue to be the South Australian Government's lead agency on Aboriginal affairs. The inclusion

of this division in the department will allow a greater focus on Aboriginal economic development. This will result in more skills

development, job creation, business development and sustainable employment for Aboriginal people.

The department will also recognise the important social and economic contribution of the Arts and will concentrate on innovation and

growth in the creative industries as well as high technology sectors including photonics and biotechnology. Expanding science and

research development will have a significant impact on economic growth in South Australia.

The Department of State Development will position South Australia to take advantage of our high growth, high-value sectors, including

mineral and resources, information and communications technology, defence, agriculture, advanced manufacturing and renewable

energy. The inclusion of HealthInSA allows the department to bring together the state’s cutting-edge, manufactured medical technologies

and capacity to advance health related capabilities and industries.

The Department of State Development will focus on innovation to assist the transition of manufacturing to high value-added activities

that compete on value for money, not solely on cost, for example. With funding from the Commonwealth Government’s Growth Fund,

the department will continue to implement the automotive transformation strategy for South Australia, as announced in the government’s

Our Jobs Plan initiatives.

Given responsibility for the state’s investment and trade, the department will work with industry to further trade and the internationalisation

of our economy. Synergies have been created through the inclusion of Invest SA.

The creation of the Department of State Development will better position South Australia to realise the potential of our natural and

economic assets. The department will have the capacity to expand beyond our state borders to seek investment partners in Asia, and

other growth-leading economies in our region. Expansion of the Olympic Dam Taskforce will facilitate the proposed expansion of the

Olympic Dam mine and provide BHP Billiton with a single entry point to government.

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03 DEPARTMENT OF STATE DEVELOPMENT


ABOUT THE DEPARTMENT04DFEEST was the South Australian Government’s key agency driving employment, skills development, research and technology in the

state, working collaboratively to meet specific targets in South Australia’s Strategic Plan (SASP) and developing the scientific, research and

innovative capacity of the state.

The department contributed to a strong and sustainable economic future for South Australia by:

• ensuring employers and individuals had access to high quality training and education to develop the required skills for a

progressive economy

• coordinating skilling, employment and innovation responses to assist industry sectors experiencing structural change

• fostering innovation through science and research, and

• promoting and supporting digital and technology developments within business, industry and community sectors.

4.1 STRATEGIC DIRECTIONS

The department’s Strategic Directions 2013-2016 had three key priorities:

• providing opportunities for all to participate in learning and work

• meeting the skills needs of workers and employers, and

• boosting productivity through innovation and skills.

These priorities are critical to South Australia achieving the economic and social aspirations outlined in the 2013 Economic Statement and

are the core business of the department.

The Strategic Directions reflect the department’s strengths and outline where we can make a real difference - directly impacting the lives

of more than 400 000 South Australians and tens of thousands of businesses over the coming years.

Key to the department’s success was our commitment to collaboration and working with industry, the education sector, the community

and regions.

Underpinning our work was a shared commitment to our values and behaviours - a commitment to integrity, respect, responsiveness in

providing services, excellence, the courage to drive change and reform, and most importantly, being accountable for our performance.

OUR VISION

A skillful and productive population.

OUR MISSION

We help people build and enhance their skills and education, making South Australia a smarter and more innovative state.

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OUR PRIORITIES AND OUTCOMES

4.2 CULTURE AND VALUES

The department’s Values and Behaviours Statement provided a platform on which to build a high performance culture. The statement

reflected the kind of organisation staff would like the department to be, and outlined and described an ethical organisation in which

practices and behaviours reward integrity and excellence, promote respect and responsiveness, and value courage and accountability.

The values were:

I Commitment to integrity

C Having the courage to drive change and reform, and be challenged

A Being accountable for our performance and outcomes

R Respect for each other and our community

R Responsiveness in providing services and solutions

E Striving for excellence in everything we do.

4.3 STRATEGIC ALIGNMENT

THE SOUTH AUSTRALIAN GOVERNMENT’S SEVEN STRATEGIC PRIORITIES

In 2012 the South Australian Government identified seven focus areas to enhance the long-term health and prosperity of the state. The

department’s work aligned to the following five areas:

• Creating a vibrant city

• Every chance for every child

• Growing advanced manufacturing

• Realising the benefits of the mining boom for all

• Premium food and wine from our clean environment.

The additional two priorities are:

• An affordable place to live

• Safe communities, healthy neighbourhoods.

04 ABOUT THE DEPARTMENT

Focusing on people and community Focusing on industry and employers Focusing on our economic future

Opportunities and participation in learning and work

Individuals have the opportunity to

engage and succeed in training, further

education and work

Meeting skills needs of workers and employers

Employers have people with the right skills

at the right time

Productivity through innovation and skills

Science, technology and innovation is

targeted to support economic growth

and social development



SOUTH AUSTRALIA’S STRATEGIC PLAN

The SASP guides individuals, community organisations, governments and business to secure the wellbeing of all South Australians over

the medium to long term. SASP contains our community’s vision and goals; its 100 measurable targets reflect our priorities.

DFEEST was the lead agency for 17 targets:

Baseline Recent data Progress

T36 Labour productivity: Exceed Australia’s average labour productivity growth rate through

to 2020.

0.0 pp1

(2002-03)

1.8 pp

above Aus

(2012-13)

On track

T47 Jobs: Increase employment by two per cent each year from 2010 to 2016.

1.7%

(Jan 2010)

1.5%

(Apr 2014)

Negative

movement

T48 Ageing workforce participation: Increase the proportion of older South Australians who are engaged in the

workforce, by 10 percentage points by 2020.

40.3%

(Jan 2010)

40.5%

(Apr 2014)

Negative

movement

T49 Unemployment: Maintain, equal or lower than the Australian average through to 2020.

0.5 pp

above Aus

(Jan 2004)

0.7 pp

above Aus

(Apr 2014)

Negative

movement

T50 People with disability: Increase by 10 per cent the number of people (aged 15 to 64) with a

disability employed in South Australia by 2020.

89 700

(2009)

86 700

(2012)

Negative

movement

T51 Aboriginal unemployment: Halve the gap between Aboriginal and non-Aboriginal unemployment

rates by 2018, halving the gap in employment outcomes between

Indigenous and non-Indigenous Australians within a decade.

14.0 pp

gap (2008)

10.0 pp

gap (2011)

On track

T53 Aboriginal employees: Increase the participation of Aboriginal people in the South Australian

public sector, spread across all classifications and agencies, to 2 per cent

by 2014 and maintain or better those levels through to 2020.

0.92%

(2003)

1.66%

(2013)

Little

movement

T54 Learning or earning: Increase the proportion of 15 to 24 year olds engaged full-time in school,

post-school education, training or employment (or combination thereof)

to 85 per cent by 2020.

78.6%

(Jun 2003)

78.4%

(Apr 2014)

Little

movement

T55 Apprentices: Increase the number of apprentice completions in trade occupations by

20 per cent by 2020.

0%

(2700)

(Dec 2009)

10.1%

(2974)

(Dec 2013)

On track

T57 Broadband access: The proportion of South Australian premises with access to broadband

services delivered by fibre technology meets the national average by 2020.

0.11% - SA

0.14% - Aus

(2011)

1.3% - SA

2.7% - Aus

(May 2014)

Little

movement

T58 Online business: Increase the proportion of businesses that receive online orders from

24 per cent to 40 per cent by 2014 and continue to grow each year.

24.2%

(2007-08)

32.0%

(2011-12)

On track

Table 1: Progress against SASP targets

1 PP = Percentage Point

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Baseline Recent data Progress

T90 Share of overseas students: Increase the number of overseas students across all education and training

sectors from 13 737 in 2003 to 45 000 by 2014 and continue growth each

year through to 2020.

13 737

(2003)

27 147

(Mar 2013)

Positive

movement

T91 Non-school qualifications: By 2014, equal or better the national average for the proportion of the

labour force with non-school qualifications and maintain thereafter.

3.4 pp

below Aus

(2002)

2.5 pp

below Aus

(2013)

Positive

movement

T92 STEM qualifications: Increase the number of domestic students completing undergraduate

tertiary qualifications in specified science, technology, engineering and

mathematics fields of education to 3600 students per annum by 2020.

3129

(2009)

3198

(2012)

Positive

movement

T93 Tertiary education and training: Increase the proportion of South Australians aged 15 to 64 participating in

tertiary education and training to 17 per cent by 2016.

15.7%

(2009)

18%

(2012)

On track

T95 Industry collaboration, research and development commercialisation: Increase to $650 million total gross cumulative value of industry and other

funding for research earned by universities and state-based publicly

funded research institutions by 2020.

$100m

(2010)

$178m

cumulative

(2011)

On track

T96 Public research expenditure: Public expenditure on research and development, as a proportion of gross

state product (GSP), to be maintained at 1.2 per cent to 2020.

1.2%

(2008-09)

No new data Baseline only

T97 University research income: Increase the total gross value of university research income to 20 per cent

above South Australia's per capita share by 2014 and maintain thereafter

(2008 baseline).

17.7%

above SA

per capita share

(2008)

19.6%

above SA

per capita share

(2012)

On track

Table 1: Progress against SASP targets continued


PERFORMANCE SUMMARY055.1 OVERVIEW

As mentioned in section 4.1, the department's Strategic Directions commit the agency to addressing economic and social barriers for

students and industry and underpin improvements to social and economic prosperity into the future, through providing opportunities

and pathways to higher level skills and industry investment to improve productivity. Further, the department’s STEM Skills Strategy

addresses the growing demand from local industries such as mining and defence for skilled workers in science, technology and engineering.

Skills and innovation are central to increasing participation and productivity and realising the state’s potential and future prosperity,

supported through partnerships with industry.

Research and development is one of the major drivers for economic growth and innovation and provides solutions to deal with emerging

industrial, social, health, security and environmental challenges. Bringing together skill development and science and technology into one

portfolio enhances opportunities, both for individuals and the future of the state’s economy.

The Training and Skills Commission (TaSC) predicts increasing demand for higher level qualifications over the period 2011-12 to 2016-17,

with around 10 per cent of this demand relating to occupations requiring significant STEM capability. International evidence indicates the

demand for jobs requiring STEM skills is growing at twice the rate of non-STEM jobs.

South Australia’s ageing population also emphasises the importance to our economy of addressing labour productivity and participation

rates. Increasing the skills of workers is critical to our future economic growth and social wellbeing. Research shows that people with a

Certificate III or higher have substantially lower unemployment rates and increased earning capacity.

Therefore, it is important to target public funding to assist the most disadvantaged into work and meet the critical skill needs of industry.

5.2 THE SOUTH AUSTRALIAN VET SYSTEM

DFEEST has responsibility for policy, funding and operation of the state’s VET system as a whole.

There are currently 165 700 students in the South Australian VET sector, an increase of 16.3 per cent or 23 200 extra students on 2012.

In 2013 South Australia led the nation in enrolment growth in qualifications, with 23 per cent growth compared to a three per cent fall

nationally. South Australia’s growth in enrolments was the highest in the nation in 2013.

An estimated one in seven South Australians in the 15 to 64 age group are undertaking VET, above the national average.

Along with this there were 34 200 trainees and apprentices employed under a training contract in South Australia in December 2013.

In South Australia there were 44.1 million hours of VET delivered to students in 2013, an increase of 24.7 per cent or 8.7 million extra hours

on 2012. South Australia was the only jurisdiction to record an increase in 2013, while the number of hours fell nationally by 2.7 per cent.

In 2013 Skills for All funded 134 900 qualification enrolments, including over 4000 school enrolled students undertaking VET as part of their

South Australian Certificate of Education (SACE).

Under Skills for All, course enrolments increased for disadvantaged groups. When comparing 2013 with 2012, enrolments for:

• mature aged (55 and over) increased by 159 per cent

• Aboriginal students increased by 69 per cent

• female students increased by 69 per cent

• people with a disability increased by 58 per cent

• low socio-economic background people increased by 60 per cent, and

• young people in the age group 15 to 24 years increased by 38 per cent.

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05 PERFORMANCE SUMMARY

In addition, over 1000 participants undertook accredited training through Adult Community Education (ACE) programs.

In South Australia there were 43 900 qualifications completed in 20121. This was an increase of 22.9 per cent or 8200 extra completions on

2011, the second-highest growth rate in the nation. Nationally, the number of qualification completions increased by 12.3 per cent.

TAFE SA is the major public training provider and has responsibility for service delivery in accordance with its Charter and the policy

objectives of the government. Over 50 per cent of South Australian VET students were enrolled at TAFE SA.

DFEEST also manages VET infrastructure on behalf of the Minister for Employment, Higher Education and Skills, as a whole of public VET

system asset base, and also, as delegate of the TaSC, has responsibility for the regulation of apprentices and trainees across the state.

5.3 WORKFORCE DEVELOPMENT

SKILLS

SKILLS FOR ALL

Skills for All is a South Australian Government initiative that has transformed the state’s VET system in order to:

• increase the skills and qualification levels of the workforce

• increase the number of South Australians with post-school qualifications, and

• increase employment participation rates, i.e. the available supply of labour to employers.

Skills for All strives to ensure the VET system is closely aligned to strategic industry demand and that public investment is targeted to skill

development of greatest benefit to all South Australians.

Skills for All offers eligible South Australians aged 16 years and above government funded training to meet individual vocational training

needs and industry demand. South Australians have the opportunity to gain government subsidised qualifications in areas linked to

employment, many at low or no cost, through the Skills for All training provider of their choice.

Building on its initial success, government investment in training through Skills for All continues to focus on meeting the strategic skill

needs of industry and priority is given to sustainable, targeted investment in areas of strategic priority.

Enrolments

Since its introduction, Skills for All has achieved significant success in attracting South Australians to training. Final qualification data

indicates that, in 2013, Skills for All funded 134 900 course enrolments, a 60 per cent increase on the 84 300 course enrolments in 20122,

representing an additional 50 600 enrolments. Figures for the same period highlight that in 2013 the number of Skills for All funded

qualifications issued (completions) increased by 80 per cent to 41 100 to deliver an additional 18 200 issued qualifications.

Figure 1: South Australian VET students by provider type, 2013 Source: NCVER, Australian vocational education and training statistics: Students and Courses 2013

Community education 3.4%

Private/Non-TAFE SA providers 39.9%

TAFE & other government 56.7%

56.7%39.9%

3.4%

1 NCVER collects the number of completions for a full year over a two year period and this leads to a lag (of one year) in reporting the data.2 In this enrolment context, Skills for All excludes Skills for Jobs in Regions, specific Aboriginal and foundation skills funding, Productivity Places

Program, Skills in the Workplace, and other Australian Government specific funding.



The majority of qualification enrolments, 67 per cent, were at the Certificate III level and above while Certificate I and II entry pathways also

experienced strong growth with many first time entrants to the training system taking the opportunity to get a qualification.

Figure 2 shows the percentage increase in enrolments across qualifications for 2013, and the increase in enrolments for the period of

TAFE SA and private training providers.

Skills for All training aligned to industry

The increase in VET has aligned closely to the needs of industry as forecast by the TaSC. Figure 3 shows the alignment of government

investment to projected industry demand for qualifications.

Figure 2: Skills for All, changes in course enrolments, 2013 Source: DFEEST, data extracted from SIS and STELA on 1 April 2014

Figure 3: Distribution of projected industry demand for VET qualifications and Skills for All enrolments in 2013 across TaSC occupation groups Source: DFEEST, TaSC Five Year Plan 2012 Note: Chart contains enrolments that could be allocated by TaSC Occupation Group.

0%

20%

40%

60%

80%

100%

120%

140%

Certific

ates I

and II

Certific

ates I

II and IV

Diplom

a and Above

Private

/Non-TA

FE SA providers

TAFE SA

All Enro

lments

0%

3%

6%

9%

12%

15%

18%

21%

Bus. & Fin. S

ervices

Health & Comm. S

ervices

Whole., Retail &

Pers. Service

s

Building & Constr

uction

Electrotech

nology

Touris

m & Hosp

italty

Transport

& Storage

Primary

Manufacturin

g

Mining & Engineering

Public Admin. &

Safety

Cultural &

Recreatio

n

Automotiv

e

Educatio

n & Training

2013 Skills for All Enrolments

Industry Demand for VET Quali�cations - Five Years to 2015-16

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Career information and development services

Information services are integral to informed choices under Skills for All. Services were delivered online, by telephone and face-to-face.

Information services provided a personalised response to over 40 000 telephone and email enquiries, and 6000 people visited

the Infocentre. The Skills for All website provided access to comprehensive information on careers, the labour market and training

opportunities.

Table 2: Website service activity, 1 July 2013 to 31 May 2014

Visitors Pageviews New visitors Returning visitor

Skills for All website 479 593 2 322 010 52% 48%

Skills for All mobile-friendly website 21 176 183 351 58.1% 41.9%

Skills for All/DFEEST eNewsletter website 4 224 12 697 46.1% 53.9%

Total 504 993 2 518 058

COST OF TRAINING DELIVERY

Increasing contestability in the VET system, culminating in the introduction of Skills for All, has significantly increased the efficiency of the

training system. The most recent data available shows that by 2012 the cost of VET delivery in South Australia has improved from one of

the highest in the nation to the lowest, while maintaining the quality of the system.

Data used to measure efficiency is ‘government recurrent expenditure per annual hour’. Factors that impact on improving efficiencies

include training costs such as teacher salaries, length of training programs, differences across jurisdictions such as scale of service delivery,

and VET policies and practices.

Figure 4: VET system efficiency Source: (2014) Steering Committee for the Review of Government Service Provision, Report on Government Services 2014

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

Aust (average)

NT

ACT

Tas

SA

WA

Qld

Vic

NSW

2008 2009 2010 2011 2012

NSW

VIC

QLD

WA

SA TAS

AC

T

NT

AU

ST (A

VER

AG

E)

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This significant improvement in efficiency meant it was possible to support in the order of 70 000 additional students in 2013.

The comparison between actual student numbers and the hypothetised number that would have been funded if the 2003 efficiency

levels had continued over the past decade is shown in Figure 5.

QUALITY TRAINING PROVIDERS

There are 209 training providers contracted and operating in South Australia under Skills for All (including TAFE SA and seven government

departments). Terms of contracts are one to five years, with the majority holding a three year contract.

As at 31 May 2014, a total of 211 499 training accounts had been created. Of these:

• 28 per cent resulted in completions

• 59 per cent are still current, and

• 13 per cent had been terminated.

Of the total active training accounts created 59 per cent were by TAFE SA and 41 per cent by private training providers.

Maintaining the quality of training providers

The Quality Assurance and Compliance Framework was established to monitor and assure training funded through Skills for All is of the

highest caliber. The following quality assurance activities occurred during 2013-14 to monitor the outcomes of funded training:

• performance monitoring of Skills for All training providers nearing the completion of their initial Skills for All contract; 58 scheduled and

12 ‘off-cycle’ performance reviews were conducted

• real-time monitoring of Skills for All training providers claim data resulted in 63 formal contract notices being issued

• independent validation of assessment, and

• student surveys.

OTHER KEY TRAINING ELEMENTS

Adult Community Education

The Adult Community Education (ACE) program is the community learning gateway for people to develop literacy, numeracy, digital

literacy and employability skills. ACE provides learning programs in a supportive community setting and delivers accredited training and

non-accredited learning programs for working-age adults (17 years and over) through not-for-profit community-based organisations. The

program improves the foundation skills of South Australians facing barriers to learning and provides further training and work pathways.

The application of the Australian Core Skills Framework and the annual agreement with community centres ensures the consistency and

quality of ACE delivery across the state.

The state government committed $11.7 million from 2010 to 2016 to ACE. In 2013-14, the department funded 78 community centres across

the state to deliver accredited training to over 1000 people, and non-accredited training which supported 13 500 enrolments. In addition,

a workforce and professional development program for 450 community centre staff and volunteers was delivered by Community Centres SA.

Figure 5: Impact of efficiency improvement on VET student numbers Source: (2014) Steering Committee for the Review of Government Service Provision, Report on Government Services 2014 & NCVER, Students and

Courses 2013

60,000

80,000

100,000

120,000

140,000

160,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Actual Student Numbers

Student Numbers at 2003 Cost per Hour

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Building Family Opportunities

The Building Family Opportunities (BFO) program breaks the cycle of long term and intergenerational family joblessness. The program

provides professional and practical whole-of-life services that enable members of jobless families to reach their full educational and

employment potential.

Jobless households suffer higher rates of poverty when compared to working households. Households where no parent is employed, be

it single parent or couple parent families, have lower levels of income when compared to single parent or couple parent working families.

The BFO demonstration program ($9.6 million from 2010 to 2014) assisted over 600 jobless families and 1800 individuals; 32 per cent were

Aboriginal families. 395 employment outcomes and 713 training outcomes were achieved. An extensive Flinders University evaluation

concluded that BFO is creating change where other agencies have been unsuccessful in the past, because:

• the whole family is assisted through a strengths-based, intensive family case management approach

• a ‘life-first’ approach is adopted - all non-vocational and vocational issues are dealt with

• a culture of non-dependence is built within the family

• motivational goal setting is central to interventions

• locally sourced and locally delivered training and job opportunities are provided

• participants are followed up during the early stages of employment, and

• a coordinated, multiple cross agency involvement is a feature of the program.

An additional $2 million was allocated in 2013-14 through the government’s Jobs and Skills Policy to assist 350 families living in the

City of Playford.

A more intense approach with Aboriginal families has led to the delivery of a specific BFO for Aboriginal families who have been identified

by the South Australian Police as being ‘on the cusp’ of offending. These families face even more significant barriers to getting a job. While

supporting participant families to engage in learning, training and work, this program is also helping reduce contact with the criminal

justice system.

By focusing on increasing the social and economic participation of jobless families, the government is investing in reducing the

intergenerational transmission of disadvantage, social exclusion and joblessness.

Aboriginal training and employment

The department is committed to halving the gap in employment outcomes between Aboriginal and non-Aboriginal people by 2018.

To achieve this, the department is connecting students, employers and work-ready Aboriginal job seekers through a suite of initiatives.

These initiatives ensure that Aboriginal job seekers have the breadth of employability skills needed to be competitive across a range of

industries while at the same time provide employers with work-ready Aboriginal people. Over 3000 Aboriginal people participated in

these initiatives, with 870 gaining a job.

One of the initiatives, the Aboriginal Employment Industry Cluster, builds the capacity of employers to increase and sustain the

employment of Aboriginal people through seven Industry Clusters, each led by a senior industry champion. This initiative was extended

to schools, with 230 Aboriginal students and job seekers visiting 30 cluster employers for career advice and hands on work experience.

Aboriginal Engagement Coordinators have a visible presence, on the ground, in regions and in local communities where high numbers of

Aboriginal people are not participating in learning, training or work. The coordinators facilitate solutions to local training and employment

needs, in particular, preparing Aboriginal people for local jobs identified by employers.

Skills for All supported 3200 course enrolments by Aboriginal students in 2013, an increase of 69 per cent (or 1300 additional enrolments)

when compared to 2012.

The department also provided $2.22 million to the Tauondi Aboriginal College to provide training in a variety of qualifications to over

1000 Aboriginal students. Tauondi, a registered training organisation owned and run by the Aboriginal community, delivers education and

training to Aboriginal people who face barriers to learning, training and work.

Training completion rates of Tauondi students are above the 25 per cent national average for all VET students. 37 per cent of students

enrolled in a full qualification in 2013-14 completed the qualification and 75 per cent of those enrolled in skill set training completed their

course.

Through the Council of Australian Governments’ (COAG) National Agreement on Remote Indigenous Public Internet Access (2009-13),

Indigenous people in the APY Lands were provided with improved community-based telecommunications, free internet access and

digital literacy training in computer and internet use.



Support for school students

Through Skills for All, school students can start a vocational pathway as a fully integrated part of their senior secondary education and have

it count towards their SACE and a VET qualification.

Skills for All assists school students to invest in their futures and the state’s future skilled workforce in three ways:

• school based apprenticeships

• Innovative Community Action Networks (ICAN), and

• Training Guarantee for SACE Students (TGSS).

As at 31 May 2014, Skills for All had funded more than 4300 school enrolled students to start vocational courses as part of their senior

secondary education. These students enrolled in 4884 separate courses, of which:

• 1152 courses were under the school based apprentices/trainees scheme

• 215 courses were enrolled through the ICAN scheme

• 3517 students enrolled in the TGSS scheme in over 80 different qualifications including engineering, construction, children’s services

and aged care, and

• 425 students completed the qualification while at school, although students generally complete their pathway post school.

Traineeships and Apprenticeships

South Australia continued to have significant numbers of apprentices and trainees in 2013, with an estimated 34 200 apprentices and

trainees in training as at 31 December 2013. While the numbers have slightly fallen from their 2012 peak, the long term trend still

demonstrates growth in the system. In 2002, there were 29 500 apprentices and trainees in training, and in 2009 there were 30 200 apprentices

and trainees in training.

There were approximately 15 700 apprentice and trainee commencements in South Australia in 2013, including 5600 apprentice

commencements (35.6 per cent) and approximately 5400 female apprentice and trainee commencements.

There were approximately 12 200 apprentice and trainee completions in South Australia in 2013, including 3600 apprentice completions

(29.5 per cent).

The five most popular qualifications undertaken through apprenticeship pathways are:

• Certificate III in Electrotechnology Electrician

• Certificate III in Carpentry

• Certificate III in Automotive Mechanical Technology

• Certificate III in Hairdressing, and

• Certificate III in Engineering – Fabrication Trade.

The five most popular qualifications undertaken through traineeship pathways are:

• Certificate III in Driving Operations

• Certificate III in Retail Operations

• Certificate III in Process Manufacturing

• Certificate II in Meat Processing (Abattoirs), and

• Certificate III in Business.

The Traineeship and Apprenticeship Services Information Service received:

• 25 115 calls to the Infoline, and

• 3421 emails to the Information Service.

Support to trainees and apprentices

The Critical Skills Fund provides a more targeted approach to addressing the skills needs of the state than the previous payroll tax

exemption scheme. The fund provides a completion bonus of up to $4000 to enterprises that employ apprentices and trainees who

complete a qualification on the Critical Skills List. As at 25 June 2014, in 2013-14 637 employers claimed a total of 998 bonus payments,

which were worth approximately $4 million.

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The travel and accommodation allowance is the state government’s contribution towards an apprentice or trainee’s travel and

accommodation costs incurred while attending off-the-job training. As at 25 June 2014, in 2013-14 approximately $1.2 million in funding

was provided to 939 apprentices and trainees to assist them in meeting their travel costs when attending training.

Workforce Participation in Government Construction Procurement Policy

The Workforce Participation in Government Public Procurement Policy ensures that 15 per cent of the onsite labour hours of state

government contracts over $5 million are undertaken by apprentices, trainees, Aboriginal people, local people with barriers to

employment, and through up-skilling of the existing workforce. The policy has recently been expanded under the Our Jobs Plan to

include a new target group – displaced automotive workers - and a 20 per cent compliance for major projects over $100 million.

The Department of Planning, Transport and Infrastructure (DPTI) is responsible for implementation of the policy, including all recording of

compliance data and contractor targets. DFEEST plays a major support role in assisting contractors to meet their compliance obligations.

There are a number of direct program measures, delivered through a case management approach, including Skills for Jobs in Regions,

Aboriginal programs and upskilling through the Skills in the Workplace.

A review of the policy is to occur in the first half of 2016. An area under consideration is whether long term major service and maintenance

contracts should also be captured by this policy. DFEEST will continue to work with DPTI to ensure ongoing success of the initiative.

EMPLOYMENT

TRAINING AND WORKFORCE DEVELOPMENT

Workforce Development Program

The Workforce Development Program is a co-investment program which enables companies and businesses (through a sector approach)

to assess and articulate their skill needs, undertake gap analysis and map strategies for training need. These sector-wide projects aim to

develop high performance workplaces, support coordinated workforce planning and address workforce issues that are restricting growth

and/or service provision.

As at 30 June 2014, $2.22 million had been allocated since its inception, with complementary industry investment of $3.68 million. Of this

total allocation $0.60 million (26.88 per cent) was allocated to initiatives in regional South Australia.

In many instances the program informed and provided evidence of the need to support applications under the Skills in the Workplace

program.

Skills in the Workplace

The Skills in the Workplace program, an initiative of Skills for All, has offered employers in key industry sectors the opportunity to partner

with the government by co-investing in training for existing workers.

The program targets investment in skills that are critical to company productivity, competitiveness and innovation in developing higher

value products and services for domestic and international markets. In 2013-14 the program changed its focus to target advanced

manufacturing, which includes manufacturing, defence, automotive, food processing and production, and mining resources and energy

industries.

As at 30 June 2014, the department had committed more than $6.85 million since the introduction of the program in 2012 to support

South Australian employers and enterprises to gain 1674 qualifications and more than 1054 skill sets, and had attracted industry

co-investment of $1.88 million.

The allocation of funding under the program concluded in January 2014. However, the program will continue to be active with substantial

training occurring until 31 May 2016 to meet the commitment to students to complete their training.

Industry and Indigenous Skills Centres

The Australian Government provides capital funding to industry and/or community organisations, or Indigenous industry and/or

community organisations to refurbish or build training facilities that deliver or enable the delivery of VET.

During 2013-14, the department managed nine Industry and Indigenous Skills Centres (IISC) contracts on behalf of the Australian

Government.

All projects managed by the department, with the exception of one in the APY Lands, have been finalised. This is the final project for the

IISC program.

Since 2005, the state government has managed 39 projects providing $17.88 million in funding support to proponents of the IISC program.



SKILLS FOR JOBS IN REGIONS

The department, through the Skills for Jobs in Regions program, contributed to regional employment growth by working with regional

employers and industry to fill jobs with local, work-ready job seekers. The program enabled South Australians to experience the economic

and social benefits, security and dignity that come with a job, and employers to have people with the right skills at the right time.

Local, tailored projects developed the vocational and employability skills of job seekers to access local jobs.

$9.5 million assisted nearly 10 000 people through the program, which provided foundation skills, training, case management, mentoring,

employability skills and supported work experience to help individuals transition to work. Projects focused on people with low levels of

educational attainment, unemployed people, and those not in the labour force. Over 3600 people gained a job.

South Australia has been nationally acknowledged as having the most extensive and robust regional program of all jurisdictions and is

applauded for having a significant approach to regional workforce development. This is because:

• strong regional, industry and community engagement underpin the regional approach

• support for decision-making in local communities is at the core of the program

• shared regional, government and industry priorities are being achieved, and

• a culture of ownership and solution brokering has been built at a local level.

The program has an extensive reach with over 150 projects delivered across the state each year, with Regional Managers and Aboriginal

Engagement Coordinators based in regional areas to support and facilitate this work.

Skills for Jobs Regional Networks and Industry Leaders Groups

Seventeen long standing and mature Regional Networks are located across South Australia. Network members have local knowledge of

workforce development priorities and a commitment to work together to lead local workforce development solutions. These networks

bring together service providers from government and the community sector to act on the unique employment challenges and

opportunities of their region. Over 1500 service providers across the state participate in these networks.

In addition, 15 Regional Industry Leaders Groups were established to provide valuable information on specific regional issues, feedback on

government policies and programs, and proactively implement employer-led initiatives at a local level.

Career services

A network of 13 regional and metropolitan career service providers work locally with job seekers who face barriers to employment,

retrenched workers and workers who need support to transition to training or other jobs if they are facing job loss. Experienced and

qualified practitioners use their knowledge of local labour markets to provide guidance and support to people looking to manage or

improve their careers, as well as one-on-one support to connect with learning, training and work opportunities.

SKILLED MIGRATION

Newly arrived skilled migrants have been assisted with information about qualifications and skills recognition, local occupational

registration and licencing, finding work in the local labour market and upskilling opportunities through Skills for All. These services

supported the attraction and retention objectives of the state’s immigration and population policy and program. Skilled migrants living

in regional South Australia were supported in collaboration with Multicultural SA and regionally based career services.

The department supported 983 individuals with job readiness and/or interview skills preparation, and a further 275 people through trades

recognition and licensing pathways. 655 individuals facing significant barriers received one on one intensive support, resulting in 223

employment outcomes. 1200 comparative assessments of overseas gained qualifications were undertaken.

HIGHER EDUCATION

Collectively, the three public universities and Torrens University Australia are a critical part of the state’s economic performance. This

includes the quality of their graduate output, community engagement, direct connection to state key economic interests through their

research and commercialisation activities, and their central role in education of international students.

Torrens University Australia, as a private Australian university and a member of the Laureate International higher education network, was

registered as an Australian University with the national regulator, the Tertiary Education and Quality Standards Agency, in July 2012 and

commenced enrolments in 2014.

Through students, faculty and research, the universities also have extensive and mature international links with countries in Asia, the

European Union, the United States of America and Canada. Inbound investment by way of partnering and investment in research centres

is growing.

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By way of relativities, there are more South Australians enrolled in the vocational education sector than in higher education, and TAFE SA

alone has roughly the same number of students as all South Australian universities combined.

NATIONAL GRANT FOR SOUTH AUSTRALIAN UNIVERSITIES

In 2013-14 the three public South Australian universities were awarded $9.24 million under the Australian Government’s Higher Education

Participation and Partnerships Program (HEPPP). The funds will support a range of activities that improve access to university for people

from disadvantaged backgrounds. The funding was the largest grant awarded to a university group from the $50 million national

funding pool.

The universities formed a consortium under the auspices of the South Australian Vice Chancellors' Committee which was actively

supported by DFEEST and the Department of Education and Child Development (DECD). The consortium will operate through three

key themes (Aspire, Support and Achieve) with HEPPP monies funding partnership activities with schools, families and communities.

These activities build on the strengths and successes of each university’s outreach to provide a full suite of statewide programs aimed at

engaging and supporting students throughout their school life and beyond.

MINISTERIAL RESPONSIBILITIES

The Minister for Employment, Higher Education and Skills has responsibility for leading the state government’s relationship with higher

education providers. The Minister is also responsible for the legislation for the three public universities and Torrens University Australia.

The Minister and the Premier meet regularly with the Vice Chancellors, individually and through the South Australian Vice Chancellors’

Committee to discuss matters of mutual interest and importance to the state.

The department supports the Minister by providing important policy and program support to ensure sustainable growth in the state’s

tertiary education system, particularly in areas of strategic importance to the state.

ENROLMENTS

In 20123, 62 726 domestic students were enrolled in higher education studies in South Australia. Of these:

• 73 per cent of all domestic students were undertaking a Bachelor degree, and over 10 per cent a Master’s degree

• 1.2 per cent were Aboriginal

• 19.5 per cent came from low socio-economic backgrounds

• 59 per cent were female, and

• 16 per cent were from regional and remote areas.

3 This is the most recent dataset available.

Figure 6: Domestic enrolments for South Australian universities, 2008 - 2012 Source: Higher Education Statistics, Department of Education, Canberra, 2012

0

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Flinders University The University of Adelaide University of South Australia

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NATIONAL REVIEWS

The department actively contributes to Australian Government reviews into higher education and in 2013-14 made a substantial

submission to the review of the higher education demand driven funding system. The submission supported retaining a demand driven

system for Bachelor level qualifications and recommended increasing flexibility at the postgraduate level to increase the number of

Australian Government-supported places in programs that provide pathways to professions.

TEACHER TRAINING QUALIFICATIONS

The department is leading the component of the state government’s High Quality Education Policy that looks at the requirement for all

new teachers to have a postgraduate qualification by 2020. South Australian universities will work with the state government to facilitate

models of initial teacher education training programs to replace current Bachelor level qualifications for initial teacher registration in

South Australian public schools.

EQUITY SCHOLARSHIPS

Through the provision of a number of scholarships, the department continued to support the government’s equity and access policies

which aim to give every member of the community the opportunity to participate in learning.

Terry Roberts Memorial Scholarship

The 8th Terry Roberts Memorial Scholarship was awarded to a student studying a Bachelor of Behavioural Science (Psychology) at Flinders

University. The Indigenous scholarship was established in 2007 with recipients receiving $2000 annually, up to a maximum of four years,

and assists with study and living expenses.

Sir Charles Bright Scholarship

The department sponsored two $1000 Sir Charles Bright Scholarships in 2013-14. The scholarships were awarded to disabled persons

undertaking post-secondary studies in Event Management (TAFE SA) and a double degree Bachelor of Law (Legal Practice) and Bachelor

of International Studies (Flinders University).

Sir Eric Neal Scholarship

In conjunction with Flinders University, the department awarded a single Sir Eric Neal Scholarship to a rural undergraduate student undertaking

an engineering degree at Flinders University. The scholarship is awarded annually to the value of $2500 per year for up to four years.

INTERNATIONAL UNIVERSITIES

Two private international universities currently operate in South Australia - Carnegie Mellon University and University College London.

The department manages the campus contracts.

These universities provide benefits to the state through their international outreach, enhancing South Australia’s reputation, and providing

specialist qualifications from internationally ‘high ranking’ universities. The combination of an international degree and studying in

Australia provides students with a unique skill set and international perspective, and enhances graduates’ employability.

Working links have been established between the international and state universities: University College London and the University of

South Australia have collaborated on a joint Graduate Certificate in Energy and Resources, while Carnegie Mellon University and Flinders

University have joint teaching programs in public policy.

INTERNATIONAL EDUCATION

The department contributes to high-level international education policy support at the state and national level through its membership

on the Joint Committee on International Education and the Education Visa Consultative Committee, and through working closely with the

state’s international education sector to provide advice on a range of policy matters.

The department provides strategic policy and program support and advice around the state’s international education sector, including

market analysis.

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ECONOMIC AND SOCIAL CONTRIBUTION OF THE INTERNATIONAL EDUCATION SECTOR

International education continues to make a significant contribution to South Australia’s economy. It is the state’s largest service sector

export and the sixth largest overall export, with an export value of $924 million in 2013. For every 1000 international students, the increase

to the state’s income is more than $2.4 million (Australian Institute for Social Research, 2009). The multiplier effects of international

education include the creation of more than 7400 local jobs and a travel spend of more than $18 million per annum by students, their

friends and families.

In addition to the economic benefits, international students contribute to improving the state’s inter-cultural relationships and therefore its

research, social, political, trade and diplomatic capabilities, and add to the cultural diversity and character of Adelaide as a vibrant city.

INTERNATIONAL STUDENTS

Adelaide continues to attract international students and in 2013 more than 27 000 international students chose Adelaide as their

study destination.

Between 2009 and 2012 the international education sector experienced a significant decline in international student numbers, due in part

to Australian Government changes to student visa and migration policy, the global financial crisis, a high Australian dollar and increased

activity of competitor countries in Australia’s traditional markets.

The more recent introduction of streamlined visa processing arrangements for universities and for other low risk non-university providers

has positively impacted on the sector with signs of a modest return to growth in 2014, particularly in the Higher Education and English

Language Intensive Courses for Overseas Students (ELICOS) sectors.

The Australian Government has also indicated its intent to develop a national industry strategy to grow the sector and support migration

by students to Australia.

Between now and 2020, global demand for education services is expected to grow by seven per cent per annum4, representing a

significant opportunity for industry growth in South Australia. Enrolment trends also show that, even in the absence of this growth, there

is capacity for South Australia to increase its share of the national market, particularly in the ELICOS and VET sectors.

4 Deloitte, Positioning for Prosperity, International Education 2013.

Table 3: Enrolment trends by sector, 2009 to 2013 (full year)

Sector 2009 2010 2011 2012 2013 SA Share of National Market

2013

Higher Education 14 808 15 667 15 671 14 686 14 028 6.1%

VET 7 651 8 582 7 303 5 584 5 069 3.8%

Schools 2 742 2 479 2 118 1 793 1 828 10.3%

ELICOS 5 926 5 099 3 933 3 522 3 868 3.4%

"Other" 2 279 1 972 1 655 1 566 1 919 6.9%

Total 33 406 33 799 30 680 27 151 26 712 5.1%

Source: Australian Education International, full-year student enrolment data – online detailed pivot table April 2014



EDUCATION ADELAIDE

Education Adelaide’s role is to promote South Australia an international education destination. It is jointly funded by the South Australian

Government, the Adelaide City Council and South Australia’s three public universities. The financial contribution is 60 per cent from the

state government and 40 per cent from other key partners.

Following a decision in 2013 not to fund Education Adelaide from 2015-16, an independent study was completed which examined future

models through which education providers, Education Adelaide, the state government and the Adelaide City Council can support the

international education market in South Australia into the future. An outcome of this review was a decision to continue funding Education

Adelaide from 2015-16 for $900 000, provided that the contribution of the other key partners continues.

AUSTRAINING INTERNATIONAL

Austraining International Pty Ltd, established in 1991, is wholly owned by the state government, with the Minister for Employment, Higher

Education and Skills as the sole shareholder.

Austraining is a specialist project management and international development organisation, managing volunteer, youth ambassador

and scholarship projects within the international aid and social development sector throughout Asia, the Pacific, Latin America, Africa and

the Carribean.

Headquartered in Adelaide, Austraining employs approximately 80 local staff, with a further 50 staff located across international offices in

Bangladesh, Ghana, Indonesia, New Zealand, Papua New Guinea, Peru and Vietnam. Austraining has an established network of more than

600 partner organisations in Australia which support and enhance its social development work.

NATIONAL PARTNERSHIPS

The department has lead responsibility for a number of National Partnership Agreements, agreed through COAG, which aim to improve

employment and economic participation among disadvantaged groups.

In terms of source countries, China continues to provide the largest number of international students in South Australia making up

42.2 per cent, followed by India (11.7 per cent) and Malaysia (7.5 per cent). The fastest growing source countries (off a very low base) are

Brazil and the Philippines.

Table 4: Enrolment trends by Country, 2012 to 2013 (full year)

Nationality 2012 2013 2013 Share of SA Total

Growth 2012-13

SA Share of National Market

2013

China 11 533 11 265 42.2% -2.3% 7.5%

India 3 490 3 135 11.7% -10.2% 6.4%

Malaysia 2 059 2 001 7.5% -2.8% 9.5%

Vietnam 1 151 1 205 4.5% 4.7% 4.6%

Saudi Arabia 1 047 1 136 4.3% 8.5% 11.0%

Korea, Republic of (South) 1 133 942 3.5% -16.9% 3.4%

Brazil 147 580 2.2% 294.6% 3.3%

Singapore 494 516 1.9% 4.5% 5.9%

Philippines 358 513 1.9% 43.3% 5.8%

Japan 468 471 1.8% 0.6% 4.1%

All other countries 5 271 4 948 18.5% -6.1% 2.5%

Total 27 151 26 712 100.0% -1.6% 5.1%

Source: Australian Education International, International Student Data – online detailed pivot table April 2014

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The National Agreement on Skills and Workforce Development and National Partnership Agreement on Skills Reform provide a framework

for broader collaboration between South Australia and the Australian Government in relation to the VET system, improvements to

information transparency and the scope and frequency of data collections and reforms to improve the quality of training provided.

NATIONAL PARTNERSHIP AGREEMENT ON SKILLS REFORM

The National Partnership Agreement on Skills Reform will contribute to reform of the VET system to deliver a productive and highly

skilled workforce which contributes to Australia's economic future, and to enable all working age Australians to develop the skills and

qualifications needed to participate effectively in the labour market.

In 2013 South Australia signed the National Partnership Agreement on Skills Reform with the Australian Government. The Agreement

allows for the payment by the Australian Government of up to $127 million in funding to South Australia in three streams for VET.

These streams included two equal in-advance payments in 2012-13 and 2013-14 totalling $25.4 million. The second stream is a series

of annual facilitation payments for implementing structural reforms in the VET sector. As a result of Skills for All changes, the Australian

Government has made the first of these payments to South Australia. They will total around $57.1 million over the life of the Agreement

from 2012-13 to 2016-17.

In the third stream the Australian Government is making available reward payments for meeting agreed targets for additional completions

above a base which is the average number of completions in 2008 and 2009. Up to $44.4 million is available in total in 2015-16 and 2016-17.

NATIONAL PARTNERSHIP AGREEMENT ON YOUTH ATTAINMENT AND TRANSITIONS

The National Partnership Agreement on Youth Attainment and Transitions aimed to increase the educational attainment and engagement

of young people aged 15 to 24 years in education, training and employment. The Agreement included a national target of 90 per cent of

young people aged 20 to 24 to have attained Year 12 or equivalent or Certificate II or above by 2015.

In South Australia, the focus of project activities funded by the partnership were delivered exclusively in and managed by the schooling

sector. The Agreement expired on 31 December 2013.

NATIONAL PARTNERSHIP AGREEMENT ON TRAINING PLACES FOR SINGLE AND TEENAGE PARENTS

This Agreement guaranteed a training place for recipients of certain parenting payments moving onto Newstart Allowance from

1 January 2013.

South Australia received $2.23 million for 2013-14 and was due to receive the same amount in 2014-15, which would have provided

$6.68 million to South Australia for the life of the Agreement. However, the Agreement was abolished in the 2014-15 Australian

Government budget and the 2014-15 payment will not be received.

NATIONAL PARTNERSHIP ON TAFE FEE WAIVERS FOR CHILD CARE QUALIFICATIONS

Under this Agreement the Australian Government agreed to reimburse states and territories for student fees waived by TAFE and paid

by the state or territory on behalf of the student. The payment is based on advice on the take up of eligible child care courses during the

preceding year. Eligible courses at Diploma level and above have been placed on the Skills for All Funded Training List as priority fee

free courses.

NATIONAL PARTNERSHIP AGREEMENT ON REMOTE INDIGENOUS PUBLIC INTERNET ACCESS

This Agreement seeks to improve investment in communications services to Indigenous people in remote communities. The Agreement

has been extended to June 2016 as a Project Agreement with the Australian Government, with additional funding of $474 000.

During 2013-2016, the new Project Agreement will maintain the Internet Centres established in five remote communities and provide

mentoring and training in digital literacy and the use of online services and communications.

PROJECT AGREEMENT FOR THE AUSTRALIAN, STATE AND TERRITORY JOINT GROUP TRAINING PROGRAM

The Joint Group Training Program (JGTP) is a joint State and Australian Government program supporting 16 group training organisations

and Group Training Australia (SA) to implement strategies and initiatives that encourage and improve commencements and completions

in Australian Apprenticeships.

In 2013-14 the total State and Australian Government funding allocation for the JGTP was $2.5 million. The South Australian Government

maintained its commitment to the JGTP at the same level as in previous years, providing $1.35 million while the Australian Government

reduced its contribution to $1.15 million.



TRAINING AND SKILLS COMMISSION

The Training and Skills Development Act 2008 (the Act) establishes the Training and Skills Commission and outlines its functions. The

Commission’s primary role is to advise the Minister for Employment, Higher Education and Skills on priorities for skills and workforce

development in South Australia.

During 2013 the Commission comprised nine members from industry, academia, unions and community organisations, and was chaired

by Adrian Smith from Rheinmetall Defence.

The Act also establishes two reference groups: one to advise the Commission on the ACE sector, the other on the regulation of

apprenticeships and traineeships under Part 4 of the Act. These groups are chaired by Commission members but draw on the wider

expertise from industry and the community for specialist advice through their membership and consultations.

Each year the Commission prepares its annual update of the five-year plan for skills and workforce development, Skills for Jobs. The plan is

the principal instrument by which the Commission provides advice to the Minister. In developing its advice, the Commission is required to

consult with a range of stakeholders, including groups representing industry, employees, education and training providers, government

and community groups.

PLANNING THE WORKFORCE

The 2013 plan, launched in November, reflects the changes in the make-up of the Commission and its stronger focus on policy

development than previous years, and reinforces the significance of the Skills for All reforms.

The Plan noted that demand will favour growth of higher level qualifications, as the economy of the future will require a more highly

skilled workforce. Between 2011-12 and 2016-17, it is estimated that GSP in South Australia will grow by at least 2.25 per cent per annum,

but with the potential to grow by as much as 3.25 per cent per annum if the Australian and world economies recover strongly. This

2.25 per cent projected average growth rate compares with the projection of three per cent presented the previous year.

This downward adjustment reflects a reassessment in light of the deterioration in economic conditions, which in turn has affected the

size and scheduling of some major projects.

The Commission has noted that South Australia has a range of other major projects underway or in the pipeline, requiring ongoing

investment in skills development. This will assist displaced and marginalised workers to have the skills to take advantage of emerging job

opportunities.

The projected rate of economic growth will support the creation of at least 30 000 new jobs in South Australia over the period 2011-12 to

2016-17, although on balance it is more likely that more rather than fewer jobs will be created.

South Australia’s demographics are such that, as the population ages, there will be an increasing need to replace workers who retire.

The Commission considers that a labour force participation rate of 64.5 per cent by 2024-25 would be consistent with its projections of

economic growth and employment. A lower rate of labour force participation could jeopardise South Australia realising its potential.

Over the period 2011-12 to 2016-17, the number of net job openings resulting from replacement demand is likely to be about 86 000, but

could be as low as 81 000. Combined, this results in total job openings over the five year period of 116 000, but with the possibility of up to

154 000. This compares with 139 000 job openings projected in the previous year.

The Commission is expecting apprentice and trainee commencements will be at a ten year low.

The Commission produces its annual plan following extensive consultation with industry and peak bodies, and includes a detailed analysis

on the demand for qualifications associated with specialist occupations.

The Commission continues to focus its efforts on building new industry advisory arrangements and developing criteria to assist with

priority settings for VET.

5.4 INDUSTRY TRANSFORMATION

With South Australia's economy in transition, the department has focused its industry collaboration effort in two aspects of structural

adjustment. These are the development of higher level skills and increasing enterprise productivity. The department is responding

through upskilling self-identifying retrenched employees of key companies that are ceasing their operations in Adelaide and regional areas.

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The second area is supporting employers in manufacturing sectors identified as growing strongly or in emergent niche areas. These

companies will require a workforce with higher level technological capability, underpinned by engineering and technical expertise, STEM

skills and higher level qualifications (both VET and higher education). Coupled with this is the importance of enhancing management and

leadership skills, which have been estimated to increase productivity by around 17 per cent.

AUTOMOTIVE TRANSFORMATION

The intention of GM Holden to close in 2017 exemplifies this difficult transition of the economy. Since April 2013 DFEEST has played a

leading role in a high level cross-government response team responding to uncertainty surrounding the Elizabeth plant's future. It is

estimated South Australia is likely to lose approximately $1.24 billion in GSP, 13 200 jobs and $72 million per year to the state’s taxation base.

Estimated jobs losses include 1750 direct job losses (GM Holden Elizabeth plant workers) and up to 6000 potential job losses in core

automotive suppliers. While some businesses may diversify product and customer bases, others won’t survive the exit of major

automotive manufacturers from Australia.

Successful employment outcomes require individual case management, skill recognition and career planning, job search assistance,

referral for skills and vocational training, and employment brokerage. Significant retraining and support investment will be required from

industry and government during this process.

The department has developed the Structural Adjustment Response to plan, develop and implement strategies and initiatives to support

enterprises and workers affected by the closure of GM Holden and the collapse of the automotive manufacturing industry in Australia. The

response focuses on providing coordinated, timely, effective and efficient strategies and initiatives that support workers in their transition

to alternative training and employment opportunities. It will also provide support and assistance to enterprises to prepare their workforces

for alternative markets.

The new Department of State Development is working with the Australian Government to comprehensively identify automotive supply

chain companies whose workers are eligible for assistance under the Australian Government’s Automotive Industry Structural Adjustment

Program (AISAP). Improvements including streamlined access to the program and extension to Tier 1 and 2 supply companies have also

been requested by the South Australian Government.

ONE-STOP SHOP ADVISORY SERVICE

A 90 day project was undertaken to establish a referral service to assist affected GM Holden and related supply-chain workers and

community members, ensuring they are supported in transitioning beyond 2017 through wellbeing, education and employment services.

The collaboration between DFEEST, DMITRE, Northern Connections and relevant local service providers delivered a business and action

plan in mid May 2014.

Further to this, DFEEST commenced planning South Australia’s labour market responses, and engaged local involvement and partnership.

Responses included:

• supporting workforce development and training to diversify and transition the automotive supply chain, aimed at retaining as many

businesses as possible and maximising worker retention

• the “GM Holden Tier 1 & Tier 2 Beyond 2017” project supporting retrenched workers re-skill for work in other sectors, in collaboration

with the AISAP, and

• development of a One-Stop Shop advisory website and hotline for workers, businesses and communities likely to be affected by the

GM Holden closure.

Arrangements for minimising the disruption to apprenticeships and traineeships are also critical.

The next steps require further investment by both South Australian and Australian Governments to:

• improve collaboration between government, research institutions and industry to better link innovation and research in the workplace

• identify collaborative projects to ensure better utilisation of workplace skills, and workplace cultural change engendering more

productive, innovative and satisfying work

• ensure greater focus on skill development around new technologies, and

• increase coordination of early retrenchment intervention support, and reviewing with the Australian Government’s current

AISAP policy.



INDUSTRY GROWTH AND SUPPORT

The department’s approach of co-investing and working with industry - to strengthen the state’s workforce and capacity of South

Australians to access skilled employment in a changing economy - is an important strategy for supporting the state’s resilience and

response to the ongoing global and economic structural change.

In 2013-14, the department continued to engage with enterprises and industry associations to identify skills and workforce challenges, and

resolutions to the impediments to companies’ growth through coordinated government assistance. These consultants also developed

close working relationships with other state government agencies, including the Department of Primary Industries and Regions SA (PIRSA),

DMITRE and DPTI, as well as their counterparts in the Australian Government, particularly the Department of Industry.

The Industry Consultants provided personalised assistance to enable companies to access funding through numerous State and Australian

Government programs and grant offerings. They liaised between agencies to broker solutions for enterprises that often do not distinguish

between state government departments and that prefer to liaise with a single person across all government agencies.

From 1 July 2013 to 28 February 2014, the Industry Consultants interacted with over 370 organisations with over 880 visits across all

industries within the state, and during these visits, over 90 per cent of discussions concerned industry skills development initiatives,

including Skills for All activities.

In addition to this, Industry Consultants provided specialist services through formal contractual relationships with a number of major

organisations, including the Australian Submarine Corporation Pty Ltd (ASC) around the skills and training needs and challenges of

Air Warfare Destroyer Project workforce.

Due to the highly technical and specialised nature of the construction of the three Air Warfare Destroyers, the department continues to

support ASC to train and up-skill its workforce to ensure it has the highly specialised skills required. To further this work, the department

recently funded the ASC to undertake a skills analysis of its workforce. This enables better identification of the existing skills and

qualifications of the workforce; improves skills utilisation; and better identifies and addresses any qualification and skills requirements for

the project. Employees will be formally recognised for the skills they possess, and receive formal training for any skill or qualification gaps.

SUPPORT FOR RETRENCHED WORKERS

In South Australia, the term “retrenched worker” refers to “a person who, as a result of company closure, downturn or restructuring, has

received formal notification of exit from a company. This includes those who accept a voluntary redundancy as a result of the same”.

The South Australian Government Retrenched Worker Program provides a range of services to retrenched workers, which assists them

transition into training and/or employment.

The program, managed by DFEEST, is voluntary and workers do not have to engage with the program nor advise DFEEST if they gain

employment. Services to workers are delivered in collaboration with DFEEST’s Career Services. In the case of automotive workers the

Australian Government also is a partner.

Between 1 July 2013 and 30 June 2014, the department supported 1230 employees from thirteen South Australian companies to transition

into training and/or employment; 885 workers were based in Adelaide and 345 were located in the South East and Riverland. The program

expended $1.93 million in support for these workers to obtain full qualifications delivered through a registered training organisation,

undertake gap training to enable them to achieve a full qualification, obtain training resources required to undertake the training, and

undertake other non-accredited training that is outside VET.

5.5 SCIENCE AND INNOVATION

STEM SKILLS

STEM SKILLS STRATEGY

STEM skills are critical to the state’s future economic development. The STEM Skills Strategy launched in 2011 outlines the policy and

program priorities required to increase the number of people studying STEM and attaining high-value STEM skills. The strategy brings

together agencies and leaders across the spectrum of government, education and industry to deliver clear policy priorities.

Since implementation of the strategy, encouraging results have been seen in the uptake of STEM qualifications in South Australia. In 2014

total university offers in the main round in each of the key STEM fields (engineering and related technologies, information technology, and

natural and physical sciences) represented 18.5 per cent of total offers, a slight decrease over 2013, but still higher than previous years.

Implementation of the strategy is overseen by the STEM Executive Reference Group.

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The state government’s Investing in Science action plan builds on the strategy with additional commitments to:

• lift numeracy achievement in government schools through implementation of Great Start - Strong Foundations - Powerful Learners: Birth

to 18 Numeracy and Literacy Strategy

• launch STEM Australia, an online portal to raise the importance of STEM to students by promoting STEM events, education programs

and providing career advice

• equip teachers, parents and students in government schools to improve learning outcomes in STEM by using the Australian Curriculum

year-by-year achievement standards to assess and report achievement for each and every student

• increase, by five per cent per year, the number of students in vocational training undertaking STEM studies through Skills for All

• further increase primary school teaching time for science to the Western European average of nine per cent by 2025, as recommended

by the Australian Chief Scientist

• expand the number of government schools with a strong focus on STEM learning and with strong connections to post school STEM

education, and

• continue to invest in professional development for government school leaders and teachers to improve teaching practices in STEM subjects.

STEM INITIATIVES

Supporting the ongoing policies in this area, the department has implemented a number of important initiatives, including:

STEM Australia

The STEM Australia website was launched in January 2014 and is aimed at attracting students and workers to pursue careers in STEM

by broadening awareness of careers that utilise STEM skills.

VET qualifications in STEM

The government has invested $35 million through Skills for All, which includes funded training support for students undertaking

STEM-related courses.

National Science Week

The department continued its long-standing investment in National Science Week in South Australia providing $40 000 towards

17 community science events around the state. National Science Week is a nation-wide celebration of science and technology comprising

around 1000 events delivered by schools, tertiary institutions, museums and science organisations.

Concept-2-Creation Program

The department invested in the industry-led Concept-2-Creation Program developed by the Northern Advanced Manufacturing Industry

Group. The program introduces a “project life cycle approach” helping schools and students develop the knowledge, understanding

and appreciation of advanced manufacturing processes and possibilities, through a problem-based learning approach. In 2013,

Concept-2-Creation was implemented in 31 schools throughout the state with over 3000 students participating in the program.

Science and Engineering Challenge

The Science and Engineering Challenge is a national competition designed to inspire school students to study senior science and

engineering. The competition is held through participating schools around the state with winners progressing to the national final.

Defence Scholarships Program

The Defence Scholarships Program provides support to Honours students considering a career in the defence sector. Now in its fourth

year, the scholarship continues to ensure a long-term supply of skills to meet the workforce needs of the South Australian defence

industry. The $5000 scholarship was awarded to 65 applicants for the 2013 academic year.

CSIRO Education South Australia

The department supported CSIRO Education South Australia to expand the outreach and in-centre science awareness activities for

students, career events and professional development opportunities for teachers. Approximately 55 000 students and adults participate in

CSIRO Education programs annually.



Other initiatives

The department also provided two one-off grants:

• $45 000 to Mobile Science Education to deliver science curriculum programs to schools in regional South Australia as well as four

professional development programs for primary schools. Themes included earth and space sciences, physical sciences, chemical

sciences and biological sciences.

• $50 000 (per annum for three years) to SciWorld to deliver science outreach programs to schools and communities in regional areas of

South Australia. SciWorld held seven SciWorld Sunday Science Fairs, of which five were in regional areas (Coober Pedy, Mount Gambier,

Port Augusta, Port Lincoln and Whyalla).

WORKING EFFECTIVELY WITH THE AUSTRALIAN GOVERNMENT

Australia’s Chief Scientist, Professor Ian Chubb AC, has been a vocal advocate of the importance of STEM, particularly the challenges that

Australia faces by the decline in STEM expertise.

There is an opportunity for South Australia to take the lead on initiatives in this area and be a pilot for national initiatives. The new

Australian Government Industry and Skills Council, endorsed as a standing committee of COAG, may provide a new forum to promote this

agenda at a national level.

SCIENCE AND RESEARCH

PREMIER’S SCIENCE AND INDUSTRY COUNCIL AND CHIEF SCIENTIST

The Premier’s Science and Industry Council provides strategic advice to the Premier, Minister for Science and Information Economy,

and Cabinet on a range of matters and initiatives relating to science, technology and innovation. The Chief Scientist for South Australia,

Professor Don Bursill, co-chairs the council with the Premier.

In 2013-14 the council held seven meetings and a number of working groups met more frequently. The Council’s working groups have

been formed to:

• provide advice on the effective communication of the importance of science to the general community

• provide guidance and advice on the commercialisation of research and mechanisms to strengthen the links between the research

sector and industry, and

• oversee the implementation and monitoring of the Investing in Science action plan.

Investing in Science - An action plan for prosperity through science, research and innovation

In January 2014 the South Australian Government released Investing in Science – An action plan for prosperity through science, research

and innovation. The plan provides a new coordinated approach to science, research and innovation in South Australia.

The plan adopted all ten recommendations made by the council and were formulated from feedback received during an extensive

consultation. The plan allocates an additional $8 million over four years to implement new and expand existing initiatives. Key objectives

of the plan are:

• attract and retain high calibre researchers in South Australia and build the capability of existing researchers

• position South Australia as leading the nation on STEM education at the school, vocational and higher education levels

• significantly increase high quality research in South Australia that aligns to the state’s priorities

• strengthen the links between education, research and industry to improve translating research into new products and services

• increase international collaboration in research and development, promote increased investment into South Australia based on our

research strengths and help South Australian companies compete in the global market place

• sustain the state’s reputation as a leader in research conducted for the benefit of society, and

• ensure South Australia’s science, research and innovation community has access to the equipment, facilities and infrastructure needed

to undertake industry relevant research.

Together with the council, the department has been developing implementation plans and monitoring arrangements across government

for the 41 actions that underpin the plan.

Investing in Science will inform future state government investment in science, research and innovation projects, incorporating a national

context that will enable greater leveraging of investment by our research institutions and universities from the Australian Government

grant programs.

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INVESTMENT IN SCIENCE AND RESEARCH

Premier’s Research and Industry Fund

The Premier’s Research and Industry Fund was established to support South Australia’s research community to compete successfully

on a national and global scale. The fund encourages investment in key science and research areas that have the potential to generate

significant economic, social and/or environmental benefits for the state. The fund consists of five strategic program areas:

• SA Research Fellowship Program - attracting world class researchers with expertise that will enhance research capabilities in South

Australia and support key industry sectors for the state

• Collaboration Pathway Program - supporting both established and early stage South Australian-based collaborations that undertake

leading edge and potentially transformational research and development

• International Research Grant Program - facilitating South Australian specific research being conducted with an international partner

• Innovation Voucher Program - a joint initiative between the department and the former DMITRE encouraging greater innovation in the

advanced manufacturing sector and driving connectivity and collaboration between industry and the research sector, and

• Catalyst Research Grants - supporting early career researchers undertaking research in collaboration with industry and end users.

In 2013-14, the fund provided a total of $6 million across the above program areas, with $3.7 million allocated to existing projects and

$2.3 million allocated to new projects.

Since 2003-04, the fund has committed $46.8 million over 82 projects; which has leveraged $95.5 million from the Australian Government,

industry partners and institutions.

High Value Food Manufacturing Centre

In November 2013, the department launched the $4.2 million High Value Food Manufacturing Centre (the Food Hub). A key objective of

the FoodHub is to increase food manufacturing industry investment in science and research through the Advanced Food Manufacturing

Grants Program. The first round of this program concluded in May 2014 with nine food manufacturers receiving funding from a strong

field of applicants.

Responsibility for the FoodHub transferred to PIRSA on 1 July 2014, as it aligns closely with the strategic priority of Premium Food and

Wine from Our Clean Environment.

Medical Research Commercialisation Fund

In 2014, DFEEST, SA Health and the South Australian Health and Medical Research Institute (SAHMRI) entered into an agreement with the

Medical Research Commercialisation Fund (MRCF) to establish a presence in South Australia, committing $600 000 per annum over four

years. The entry of the MRCF into South Australia will allow all health and medical research related institutions to access the expertise and

venture capital finance of the MRCF. The first South Australian research member is SAHMRI.

The MRCF is a venture capital fund providing dedicated funds for the commercialisation of research emanating from its member medical

research institutes. It was established by Australian superannuation funds and medical research institutes and hospitals in 2007. Since this

time the MRCF has secured $50 million in investment capital and its membership has grown to 32 medical research institutes, research

hospitals and health departments across all mainland states.

Cooperative Research Centre Assistance Program

The Australian Government’s Cooperative Research Centre (CRC) program supports applied research between industry and research

institutions. Funding is allocated through a competitive basis with centres established (mostly between five to seven years duration) in

areas of national importance. The South Australian Government, through DFEEST, provides a CRC Assistance Program offering $100 000 for

nodes based in South Australia or $200 000 for those headquartered here.

The CRC Assistance Program currently supports ten CRCs and in 2013-14 provided a total of $1.2 million in funding support. The CRC

Assistance Program also supported the Data to Decisions CRC bid application, headquartered in South Australia, which was successful in

receiving Australian Government funding of $25 million over five years from 2014-15.



DIGITAL PRODUCTIVITY AND TECHNOLOGY

NBN ROLLOUT IN SOUTH AUSTRALIA

The National Broadband Network (NBN) was announced by the Australian Government in April 2009. Although the NBN is the

responsibility of the Australian Government, the department is keen to ensure that our state maximises the benefits from high speed

broadband services. Significant areas of the state do not have access to affordable high speed connections that are needed now and into

the future to support businesses and the delivery of online government service delivery, remote/distance education and telemedicine.

In South Australia, the NBN was launched in Willunga in September 2011, one of the first five sites on mainland Australia. Since that time,

NBN rollouts have been completed in McLaren Vale/McLaren Flat, with Prospect, Modbury, Seaford and Aldinga rollouts progressing.

Fixed Wireless rollout has commenced in the South East/Murraylands with the first connections in June 2014. Further rollout areas are

expected to be announced soon.

According to figures released by NBN Co in its most recent status report (June 2014), South Australia’s share of number of ‘premises passed’

is 15 965 versus 560 241 for Australia and for ‘premises activated’ 6359 versus 199 067 for Australia.

The department leads an across government SA Early NBN Sites Reference Group designed to foster collaboration and information sharing

across local government in NBN rollout areas. The department will continue to monitor the rollout of the NBN closely as the new NBN

model commences in late 2014, especially in regional areas.

Mobile Blackspot Program

The Australian Government announced a $100 million funding program to address remaining mobile phone coverage blackspots in the

2014 Australian Government Budget.

The department is working with a number of agencies including Regional Development in PIRSA and the Office of the Chief Information

Officer to coordinate the nomination of new mobile blackspot locations and liaison with the Australian Government Department of

Communications in regards to program guidelines.

NATIONAL DIGITAL ECONOMY STRATEGY

The National Digital Economy Strategy (NDES) sets out a vision for Australia to realise the benefits of the NBN and position Australia as

a leading digital economy by 2020.

The NDES outlines eight digital economy goals in key focus areas:

• online participation by Australian households

• online engagement by Australian businesses and not-for-profit organisations

• smart management of our environment and infrastructure

• improved health and aged care

• expanded online education

• increased teleworking

• improved online government service delivery and engagement, and

• greater digital engagement in regional Australia.

Through the South Australian Digital Economy Strategy Group, DFEEST has contributed to a number of key focus areas. The department

is championing the release of South Australian Government data under the Open Data Declaration and is a key sponsor of Unleashed, the

South Australian node of the national open data competition, GovHack. Unleashed gives the general public access to non-sensitive data

that can be reused and remixed to create mobile applications and website tools that solve problems and generate new ideas.

Through the digital literacy learning tool, ForwardIT, DFEEST is specifically addressing online participation by Australian households and

online engagement by Australian businesses and not-for-profit organisations. ForwardIT continues to be the digital learning tool of choice

for libraries, schools, the ACE sector, registered training organisations, the aged sector, multicultural groups and job seeker agencies. As

a free web-based digital literacy resource, ForwardIT helps individuals and businesses develop knowledge and confidence in using the

Internet and business software. Demand for digital literacy skills, via the use of ForwardIT, continues to increase, with around 300 984 page

views and over 1000 iPad downloads.

The NDES update sets out the next phase in the journey and identifies readiness, environment and usage as three key elements as

enablers of leading digital economies with the NBN being the key driver.

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The Australian Government is currently reviewing the NDES and aspects of the many programs to determine refined focus areas to drive

the digital economy.

INVESTMENTS IN DIGITAL ECONOMY AND TECHNOLOGY

Venture Catalyst

Innovation and entrepreneurship is a key driver of our state’s future prosperity. It will help create high-tech, sustainable jobs, economic

growth, and will boost our state’s global competitiveness. The Venture Catalyst program supports entrepreneurship by encouraging

collaboration between students from the University of South Australia (UniSA) and industry to create start-ups for the commercialisation

of products, services or processes in any field of research offered by UniSA.

Venture Catalyst, a partnership between the state government and UniSA, will help to:

• increase the number of university graduates skilled in developing and commercialising new ideas

• increase the number of university graduates motivated to start a new local company

• increase the number of successful start-ups in South Australia and the amount of investment in these start-ups

• boost employment opportunities for South Australians, and

• increase the number of talented entrepreneurs who are encouraged to stay in South Australia.

Adelaide free Wi-Fi

DFEEST, through initiatives such as the Adelaide Wi-Fi network, promotes investment in and the use of digital technology. In partnership

with the Adelaide City Council, DFEEST facilitated the deployment of a free public wireless network across the Adelaide central business

district, North Adelaide, in public spaces and surrounding parklands.

The state government invested $1 million in the project, with the Adelaide City Council contributing $500 000. iiNet, represented by local

subsidiary Internode, was awarded the contract to construct the network by June 2014, and operate and manage the service for five years

until June 2018.

The expanded wireless coverage provides fast free Internet access such that tourists and visitors can use it to stay in touch with family

and friends, students can use it to study, business can use it for remote access to their office networks, or the wider community to stay in

touch by email, social networks or for online ordering. The network comprises over 200 outdoor points, making it the largest of its type in

Australia. The service was successfully launched on 25 June 2014.

eBizSA

The eBizSA program, delivered in partnership with local councils, Regional Development Australia and industry organisations, shows

South Australian SMEs how to use digital technology to improve their competitiveness, streamline their business systems, and identify

new markets. Since 2006, the state government has invested around $550 000 in programs aimed at boosting the digital skills of South

Australian SMEs.

MEGA

The MEGA entrepreneurship masterclass has been held each year since 2006 and helps participants build on their creative, technical or

business skills and learn how to develop a business from a concept through to the creation of an enterprise. MEGA has become a highly

recognised program, with extensive support from industry, mentors and presenters.

Management of MEGA was outsourced to industry, through the Majoran Distillery, in 2013. A total of 18 participants contributed to five

written business proposals, with pitch presentations conducted in December 2013.

FabLab

FabLab Adelaide is a community 3D printing and fabrication workshop that supports small businesses, schools, entrepreneurial and

creative individuals through the provision of free and low cost access to equipment, expertise and training.

The FabLab concept was originated by Massachusetts Institute of Technology (MIT), and there are now approximately 150 around the world.

FabLab Adelaide is the first Australian-based participant in the international MIT FabLab network and has been in operation since 2012.

Original funding to establish FabLab Adelaide was provided by DFEEST. Further development and expansion is now being explored

through a collaboration between UniSA and Flinders University at the Tonsley and City West sites.


ABBREVIATIONS06ACE Adult community education

AISAP Automotive Industry Structural Adjustment Program

AQF Australian Qualifications Framework

ASC Australian Submarine Corporation Pty Ltd

ATO Australian Taxation Office

BFO Building Family Opportunities program

COAG Council of Australian Governments

CRC Cooperative Research Centre

DECD Department of Education and Child Development

DFEEST Department of Further Education, Employment, Science and Technology

DMITRE Department for Manufacturing, Innovation, Trade, Resources and Energy

DPTI Department of Planning, Transport and Infrastructure

DSD Department of State Development

ELICOS English Language Intensive Courses for Overseas Students

FYTE Full-year training equivalent

GSP Gross state product

HEPPP Higher Education Participation and Partnerships Program

ICAN Innovative Community Action Networks

ICT Information and communication technology

IISC Industry and Indigenous Skills Centres

JGTP Joint Group Training Program

MIT Massachusetts Institute of Technology

MRCF Medical Research Commercialisation Fund

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06 ABBREVIATIONS

NBN National Broadband Network

NDES National Digital Economy Strategy

PIRSA Primary Industries and Regions SA

SACE South Australian Certificate of Education

SAHMRI South Australian Health and Medical Research Institute

SASP South Australia’s Strategic Plan

SMEs Small to medium enterprises

STEM Science, technology, engineering and maths

TaSC Training and Skills Commission

TGSS Training Guarantee for SACE Students

TVSP Targeted Voluntary Separation Package

UniSA University of South Australia

VET Vocational education and training

WHS Work health and safety


APPENDICES077.1 MINISTERIAL ACCOUNTABILITY

The Minister is accountable to the South Australian public for the delivery of efficient and effective services that respond to training,

employment and workforce needs.

CURRENT ACCOUNTABILITY

HON GAIL GAGO MLC

From 26 March 2014

Minister for Employment, Higher Education and Skills

Minister for Science and Information Economy

PREVIOUS ACCOUNTABILITY

HON GRACE PORTOLESI MP

21 January 2013 to 15 March 2014

Minister for Employment, Higher Education and Skills

Minister for Science and Information Economy

7.2 LEGISLATION ADMINISTERED BY THE DEPARTMENT

During 2013-14, the following legislation was administered by the department:

• Construction Industry Training Fund Act 1993

• Construction Industry Training Fund Regulations 2008

• Flinders University of South Australia Act 1966

• Public Corporation (BioInnovation SA) Regulations 2001

• Public Corporations (Education Adelaide) Regulations 2011

• TAFE SA Act 2012

• TAFE SA Regulations 2012

• Technical and Further Education (Vehicles) Regulations 1998 (made pursuant to the TAFE Act 1975)

• Training and Skills Development Act 2008

• Training and Skills Development Regulations 2008

• University of Adelaide Act 1971

• University of South Australia Act 1990

Additionally, the South Australian Vocational Education and Training Act 2012 has been committed to the Minister for Employment, Higher

Education and Skills and the Minister for Science and Information Economy, the Hon Gail Gago. The department holds no administrative

responsibility under this Act.

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07 APPENDICES

7.4 ASBESTOS MANAGEMENT IN GOVERNMENT BUILDINGS

DPTI conduct annual asbestos audits which form the basis of the asbestos register for each site. In 2013-14 DFEEST spent approximately

$90 000 directly managing asbestos containing materials which was allocated across TAFE SA for addressing high risk categories as

outlined in the asbestos register for each site.

It should be noted that asbestos management reporting is incorporated into an annual across government report undertaken by DPTI.

7.5 BOARDS, COMMITTEES AND AUTHORITIES

As at 30 June 2014 the following boards, committees and other bodies were either a part of, or under the control of, the department.

Number of accounts paid

% of accounts paid

(by number)

Value in $A of accounts paid

% of accounts paid

(by value)

Invoices paid within 30 calendar days or less 17 240 98.56% $650 028 143 98.62%

Invoices paid within 31 to 60 calendar days 203 1.16% $6 590 746 1%

Invoices paid greater than 30 calendar days 48 0.28% $2 501 372 0.38%

Total accounts paid 17 491 100% $659 120 261 100%

7.3 ACCOUNT PAYMENT PERFORMANCE

In 2013-14, DFEEST paid invoices within 30 calendar days or less at the rate of 98.6 per cent (by number and by value). This is an improvement

on 2012-13 when invoices were paid within 30 calendar days or less at the rate of 94 per cent (by number) and 96.5 per cent (by value).

Table 5: Account payment performance

MINISTER FOR EMPLOYMENT, HIGHER EDUCATION AND SKILLS

• Austraining International Pty Ltd

• Construction Industry Training Board

• Education Adelaide Board

• Training and Skills Commission

• Training and Skills Commission - Access and Participation Reference Group

• Training and Skills Commission - Quality Reference Group

• Training and Skills Development Act 2008 Assessor Panel

MINISTER FOR SCIENCE AND INFORMATION ECONOMY

• Bio Innovation SA Board

• Bio Innovation SA Board - Audit Committee

• Bio Innovation SA Board - Investment Committee

• Premier’s Science and Industry Council


CONTRACTUAL ARRANGEMENTS

The department did not enter into a contract greater than $4 million under the requirements of Premier and Cabinet Circular 013 – Annual

Reporting Requirements..

7.7 DISABILITY ACTION PLANS

A review of the department’s Access and Inclusion Plan 2012-2015 commenced in 2014, and a Disability Access and Inclusion Plan will

be developed in consultation with employees and members of the community. The new plan will outline the Department of State

Development’s commitment to improved physical accessibility, genuine inclusion and strategies to meet the service needs of people

with disability.

Other initiatives included workplace modification to enable workers with disability to perform their duties, inviting workers with

disability to apply for departmental positions through employment vacancy advertisements and promoting opportunities for people

with disabilities.

INFRASTRUCTURE

The Minister for Employment, Higher Education and Skills owns 52 TAFE SA campuses. The department is responsible for ensuring that

access to those facilities is not restricted to people with a disability. In 2013-14 the department funded over $90 000 of projects to improve

the access for staff and students to TAFE SA and DFEEST facilities.

07 APPENDICES

Consultant Description of work Amount

Australian Bureau of Statistics To provide expert advice and consultancy services in the development of

the SA Skills survey

$19 000

Jane Jeffreys Consulting To provide expert advice and consultancy services in the restructuring of

agencies to form the new Department of State Development

$21 000

Globaled Services To undertake an independent study to determine an optimum and

sustainable model for the support of the international education market in

South Australia

$35 000

Lista To undertake an independent red tape reduction review $56 000

Ernst and Young To undertake a lean process review of Traineeship and Apprenticeship

Services within DFEEST

$63 000

Table 7: Details of consultancy expenditure more than $10 000

7.6 CONSULTANTS

Amount (excl GST)

Number of consultancies

Below $10 000 $5 000 1

Between $10 000 and $50 000 $75 000 3

Above $50 000 $119 000 2

Total $199 000 6

Table 6: Consultants

P 38

7.8 FINANCIAL OVERVIEW

In 2013-14, total expenses from ordinary activities decreased by $13.9 million. The movement in expenses can be explained as follows:

• a decrease in Employee Benefits of $84.9 million relating primarily to four months of TAFE SA employee costs being included in 2012-13

(TAFE SA was proclaimed as a statutory authority and separated from DFEEST on 1 November 2012), and

• a decrease in Supplies and Services of $22.4 million relating primarily to four months of TAFE SA printing, cleaning, utility and property

maintenance costs being included in 2012 13.

The abovementioned decreases in expenses have been partly offset by:

• an increase in VET funding of $38.1 million due to growth in the Skills for All program

• an increase of $33.5 million in Grants and Subsidy Expenses relating primarily to grants provided to TAFE SA, and

• an increase of $22.3 million in Other Expenses relating primarily to an increase in DFEEST reimbursements to TAFE SA for Targeted

Voluntary Separation Package payments.

In 2013-14, total income from ordinary activities decreased by $34.5 million primarily due to the recognition in 2012-13 of fees, charges and

commonwealth grants attributable to the operations of TAFE SA for the period 1 July 2012 to 31 October 2012.

The tables provided in this section set out a summary of the actual results for the 2013-14 financial year. The detailed financial statements

reflecting actual results for 2013-14 are presented under Section 8 Financial Statements.

OPERATING REVENUES

Total operating revenues for 2013-14, including revenues from government, amounted to $587.7 million. The principal source of funding

for the department relates to State Government appropriations which in 2013-14 amounted to $504.8 million. Other operating revenues

included $44.3 million from fees and charges and Commonwealth grants of $31.5 million.

07 APPENDICES

Table 8: Summary of financial information

Actual 2013-14

$’000

Actual 2012-13

$’000

Statement of comprehensive income

Expenses 580 305 594 234Income 82 876 117 403

Net cost of providing services 497 429 476 831

Revenues from government 504 808 425 892

Net result 7 379 (50 939)

Figure 7: Overview of revenue sources for 2013-14

Other Income ($4.0 million)

Investment Income ($0.4 million)

Other Grants and Contributions ($2.6 million)

Fees and Charges ($44.3 million)

Commonwealth Grants ($31.5 million)

Revenues from SA Government ($504.8 million)$504.8million

$2.6 million $4.0 million$0.4 million

$31.5million

$44.3million


07 APPENDICES

Figure 8: Overview of operating expenses for 2013-14

Net Loss from the Disposal of Non-Current Assets ($0.2 million)

Depreciation and Amortisation ($21.9 million)

Grants and Subsidies ($130.5 million)

Supplies and Services ($34.9 million)

VET Funding ($309.1 million)

Employee Benefits ($53.7 million)

Other Expenses ($30.0 million)

$309.1million

$34.9million

$21.9 million$0.2 million $30.0 million

$130.5million

$53.7million

$ million

Employment and skills formation - VET

Coordinate high quality VET through TAFE SA and other registered training organisations through:

• the investment of public funds to support individuals and employers to develop workforce skills, including

through apprenticeships and traineeships

• supporting post-secondary training and education to meet industry requirements, and

• providing state and national policy advice.

$482.4

Employment and skills formation - learning, workforce participation and workforce development

Address the state’s economic development, productivity and social inclusion objectives by:

• providing opportunities for people to participate in employment, training, skills development and adult

community education

• meeting the current and future labour and skill needs of industry, and


$54.6

Table 9: Overview of operating expenses 2013-14

OPERATING EXPENSES

VET funding amounted to $309.1 million (or 53 per cent) of the department’s total 2013-14 operating expenses of $580.3 million. Within

this category, $192.6 million related to funding of TAFE SA, whilst the balance of $116.5 million related primarily to VET funding of private

providers.

Supplies and services expenses of $34.9 million related primarily to information technology infrastructure and communication expenses

($13 million) and fees for contracted services ($6.8 million).

Grants and subsidies expenses amounted to $130.5 million, including $73.6 million to TAFE SA, $19.6 million for employment programs,

$15.3 million for science and information economy programs and $11 million for Tertiary Student Transport Concessions.

Other major components of operating expenses amounted to $53.7 million for employee benefits and $30 million for other expenses.

A further $21.9 million was charged to depreciation and amortisation expense.

P 40

07 APPENDICES

$ million

Employment and skills formation - quality assurance and regulatory services

Administer the state’s further education and training system through:

• quality assurance of Skills for All training providers and other training organisations in accordance with

contract standards

• quality oversight of the state vocational education system through the TaSC

• regulating and administering the apprenticeship and traineeship system, and


$16.2

Employment and skills formation - international and higher education

Support South Australian higher education institutions, both local and international, in sustaining the state’s

reputation for quality teaching and learning for both domestic and international students.

Provide high level strategic policy advice to the Minister on higher education policy and planning.

$5.4

Science, technology and information economy - science and innovation

Provide high level strategic advice to the Minister on maximising economic, environmental and social benefits from

the state’s scientific and research performance and investments by:

• identifying strategic priorities for state government investment in science and research

• raising awareness and understanding of the benefits of science and innovation amongst government, business

and the community

• facilitating coordinated and strategic bids for Australian Government grants, and

• facilitating the coordination of education and research activity with end-user (industry) requirements to maximise

the benefits for South Australia.

$13.1

Science, technology and information economy - bioscience industry development

Develop the bioscience industry by providing assistance in business development, finance, infrastructure

and marketing.

$5.7

Science, technology and information economy - information economy

Provide high level strategic policy advice to the Minister and government on the information economy and the

information and communications technology (ICT) sector with particular regards to its uptake and effective use to

maximise economic benefits across the state through:

• developing strategy and facilitating programs and projects for promoting the information economy and

supporting the deployment, availability and effective use of broadband across the state

• supporting strategic investments projects that deliver on the information economy objectives, and

• implementing initiatives that support digital literacy across the community.

$2.9

Total $580.3

Table 9: Overview of operating expenses 2013-14 continued


7.9 GREENING OF GOVERNMENT OPERATIONS

ENERGY EFFICIENCY The 2013-14 energy usage result was positive with the portfolio achieving an overall average of 3.2 per cent increase in energy use

compared to 2012-13.

This is the first financial year that the department has reported energy usage separately to TAFE SA. This significantly changes the

department’s data as energy usage for the approximate 52 TAFE SA operated campuses will be reported on in the TAFE SA Annual Report.

Data for the previously reported base year of 2000-01 does not exist for DFEEST only assets. Data for the 2012-13 reporting period has

been included to provide an indication of change in energy use across periods.

Three vacant TAFE SA sites were taken over by the department and the energy usage for these sites has reduced significantly as they are

now unused awaiting sale.

The sustainability reporting is aligned to the department’s strategic directions, the whole of government Energy Efficiency Action Plan

and the Greening of Government Operations Plan, which are all linked to various SASP targets, of which the following objectives, goals

and aims are reported:

FLEET MANAGEMENTAs at the completion of the 2013-14 financial year, the department’s fleet had a total of 32 vehicles, a reduction on the previous period by

three vehicles. During the year the department continued to migrate the fleet from six cylinder to four cylinder vehicles where possible

and increased the use of alternatively fuelled vehicles during this time of which diesel fuel is preferred.

The department’s fleet kilometre travelled per vehicle has reduced significantly from the previous reporting period from 6449 km per

vehicle per quarter to 624 km per vehicle per quarter, with a total of 79 946 km across the fleet for this period. This is consistent with the

reduced regional travel responsibilities of the department now that TAFE SA has become a statutory body.

The vehicle fleet used a total of 5030 litres of diesel fuel, 8570 litres of LPG and 15 520 litres of unleaded fuel which represents an 84 per cent

decrease in the total amount of diesel, LPG and unleaded fuels compared with the same period for the previous financial year. This is

consistent with the decreased number of kilometres travelled by fleet vehicles.

Greenhouse gas emissions have fallen from 228.33g per km to 223g per km. This is a further reduction on the whole of fleet average

of 238.12g. The department is well advanced toward achieving its greenhouse gas emissions target reduction achieving a reduction of

23.03g against a target of 25.4g.

07 APPENDICES

Energy use (GJ)1 $ (ex GST) Business measure MJ/m2

Year 2012-13 1 840 $150 904 187

Year being reported (2013-14) 1 889 $141 781 193

Reduction from 2011-12 4.5%

Final Target (for 2015 from 2000-2001) 20%

Business Measure m2 9 846 m2

Table 10: Performance against annual energy usage targets

Disclaimer:

The department has endeavoured to provide the most accurate information from all possible sources available to it and any unintentional

inconsistencies are beyond the department’s control.

Notes:

1. Energy use is expressed in gigajoules (GJ) and is the sum of all fuel types used in our facilities (electricity, natural and bottled gas) for

that period.

2. The key performance indicator for energy efficiency is energy intensity; the amount of energy consumed per unit of a given business

measure. DFEEST uses the net size of all of our facilities in m2. This is a common measure used across many agencies.

P 42

WASTE MANAGEMENT This represents the first financial year that the department has reported waste management separately to TAFE SA. This significantly

changes the department’s data, as waste for the approximate 52 TAFE SA operated campuses will be reported on in the TAFE SA

annual report.

The department is responsible for portions of two leased buildings within the central business district, one of which has a five star green

star rated fit out. In accordance with the requirements of the green star accreditation, waste removed from the site is managed in a

sustainable manner. In 2013-14, 83 per cent of the waste was recycled with the remaining 17 per cent going to land fill.

WATER USAGEAs with energy efficiency and waste management, this represents the first financial year that the department has reported water usage

separately to TAFE SA.

The department’s facilities are portions of large multi storey buildings within the central business district and are not separately metered

or charged directly for water usage.

7.10 MANAGEMENT OF HUMAN RESOURCES

EMPLOYEE STATISTICSThe following data is based on records extracted from the department’s Human Resource Information System, and relates to individuals

identified as DFEEST employees as at 19 June 2014, the last pay of the 2013-14 financial year.

Unless otherwise stated, the data includes all executive and non-executive employees.

The abbreviation FTE stands for full time equivalent. The term ‘persons’ refers to the headcount of individuals employed. Data provided is

based on headcount unless specifically referred to as FTE.

07 APPENDICES

Table 11: Total number of employees

Table 12: Employee numbers by gender

Table 13: Number of persons who were recruited to and separated from the department

Gender Persons % FTE %

Male 243 45.59 238.26 47.16

Female 290 54.41 266.93 52.84

Total 533 100 505.19 100

Persons 533

FTEs 505.19

Separated from the department 221

Recruited to the department 101


07 APPENDICES

Table 16: Status of employees in current position

Table 17: Status of FTE employees in current position

Ongoing Short-term contract

(0 > 12 months)

Long-term contract

(< 12 months)

Total

Male 168 63 12 243

Female 197 77 16 290

Total 365 140 28 533

Ongoing Short-term contract

Long-term contract

Total

Male 164.66 61.60 12 238.26

Female 180.73 70.20 16 266.93

Total 345.39 131.80 28 505.19

Table 14: Age distribution of employees by headcount and gender

Age bracket (years)

Male Female Total % of total Workforce benchmark (%)

15 - 19 0 1 1 0.19 5.73

20 - 24 6 12 18 3.38 9.47

25 - 29 22 27 49 9.19 10.39

30 - 34 44 41 85 15.95 9.79

35 - 39 50 55 105 19.70 10.56

40 - 44 34 30 64 12.01 11.73

45 - 49 23 30 53 9.94 11.89

50 - 54 17 29 46 8.63 11.51

55 - 59 23 33 56 10.51 9.39

60 - 64 18 28 46 8.63 6.30

65+ 6 4 10 1.88 3.23

Total 243 290 533 100 100

Table 15: Number of employees by salary bracket

Male Female

$1 - $51 599 14 24

$51 600 - $65 699 47 55

$65 700 - $84 099 72 87

$84 100 - $106 199 81 103

$106 200 + 29 21

Total 243 290

P 44

07 APPENDICES

Table 18: Number of executives by gender and classification

Classification Tenure Male Female

EXEC ULE N 1 0

SAES-1 N 4 7

SAES-2 N 3 0

Total 8 7

Table 19: Aboriginal and/or Torres Strait Islander employees

Male Female Total % of agency % of SA community*

7 8 15 2.81 2

* Target set by South Australia’s Strategic Plan (% Public Sector)

* Average leave days taken per FTE over each financial year

* Benchmark from ABS Publication Basic Community Profile (SA) Cat No. 2001.0, Tables B09 and B13a-B13b (2011 Census)

** Employees are not compelled to provide this information and therefore, the information in the table is not a true reflection

Table 20: Cultural and linguistic diversity

Table 22: Average leave days

Table 21: Number of employees identified as having disability

Employees are not compelled to provide this information and therefore, the information in the table is not a true reflection.

Male Female Total % of agency

% of SA community*

Number of employees born overseas** 11 15 26 4.9 22.11

Number of employees who speak language(s)

other than English at home

3 6 9 1.7 14.38

09-10 10-11 11-12 12-13 13-14*

Paid sick leave 8.20 8.36 8.18 8.59 9.47

Special leave with pay 3.19 3.22 2.28 4.53 3.42

Employees with disability 4


PERFORMANCE DEVELOPMENT

PERFORMANCE COACHING

The department’s Performance Coaching Framework encourages two-way conversations and aligns employees’ understanding of their

duties and responsibilities to the SASP, the department’s Strategic Priorities and agency business plans.

The framework assists the department to achieve a culture of ongoing and continued performance coaching, planned performance

development to meet organisational needs, and career planning through performance coaching meetings between employees and

their managers.

Performance coaching online

Performance coaching online is designed to enhance the performance coaching process. Since implementation of the system:

• 55 per cent of managers have registered performance management data into the system, and

• 66 employees have either completed or planned performance coaching meetings using the online system.

The current data has been impacted by system difficulties. The online system is being reviewed to improve record keeping

and accessibility.

GRADUATE PROGRAM

The department’s Graduate Employment Strategy 2010-2015 is an innovative program designed to address and refresh the department’s

ageing workforce. This annual program provides six skilled graduates with a career pathway into the department and the South Australian

public sector.

Graduates participate in a structured program that includes rotational placements across the department’s business units and completion

of a tailored development program. The program has been designed to prepare graduates to secure further employment within the

public sector at the end of their 12 month graduate employment experience.

07 APPENDICES

Table 23: Voluntary flexible working arrangements

Table 24: Documented review of individual performance management

Type Male Female Total

Purchased leave 0 2 2

Flexitime 231 266 497

Compressed weeks 2 2 4

Part-time 14 62 76

Job share 0 1 1

Working from home 0 6 6

Employees with … % of total workforce

A review within the past 12 months 16.7

A review older than 12 months 21.4

No review 61.9

VOLUNTARY FLEXIBLE WORKING ARRANGEMENTS

Table 25: Graduate numbers by gender

Male Female

2 4

P 46

ABORIGINAL TRAINEESHIP PROGRAM

The department’s Aboriginal traineeship program was integrated into the Government’s new Jobs4YouthSA initiative launched in March

2014, as part of the department’s planned approach towards recruiting and developing Aboriginal trainees within the department. The

department recruited one Aboriginal trainee to work across the department.

EMPLOYMENT OPPORTUNITY PROGRAMS

ORGANISATIONAL CAPACITY BUILDING PROGRAM

The department has a strong Capacity Building Program which focusses on three core areas: workforce planning, capacity building and

culture. The program is underpinned by the department’s Capability Framework which establishes the core capabilities and skill sets

required across the department. The framework consists of five core capability areas: communication, business excellence, achieving

results, positive working relationships and strategic and operational thinking.

Skills development identified as priorities for staff included:

• leading service change in wellbeing

• service excellence

• project management and project governance

• leadership

• change management

• resilience and business improvement

• performance management, and

• work, health and safety.

In addition, specific programs for management, leadership and executive development were incorporated into the program.

The program is centrally funded in the department by Corporate Services and individual directorates. Funds are allocated to the program

with activities are negotiated annually, based on business need and future directions of the department.

A total of 843 staff participated in the program which comprised of:

• leading change

• making the most of change

• building resilient and successful teams; building resilience and self-management and developing your performance edge

• work and wellbeing

• leading service excellence; customer service excellence and managing complex customer situations

• practical and advanced project management

• performance management

• work health and safety, and

• coaching.

07 APPENDICES

Table 26: Employment opportunities by gender

Male Female

Apprentices, trainees* and cadets 0 1

Aboriginal recruitment programs (includes

Aboriginal traineeship programs)

1 2

Disability Employment Registers recruitment 0 2

* Includes Aboriginal trainees


07 APPENDICES

Table 27: Training and development expenditure

Total cost % of total salary expenditure

Total training and development expenditure $474 000 1.3%

Total organisational capacity building expenditure $463 000 0.4%

Note: These figures include HECS costs.

WORK HEALTH AND SAFETY AND INJURY MANAGEMENT

Table 28: Work health and safety (WHS) comparative data

2013-14 2012-13 2011-12*

1. WHS (previously OHS) legislative requirements (includes incidents involving students, contractors and visitors)

Number of notifiable incidents (previously occurrences or injuries) pursuant to

WHS Act Part 3-Incident notification

0 0 13 (4 from students,

1 from public)

Number of notices served pursuant to WHS Act Part 10 Division 1 to 3

(previous OHS&W Act s35, s39 and s40)

0 0 3

2. Injury management legislative requirements

Total number of new claimants who participated in the rehabilitation program 1 1 31

Total number of employees rehabilitated and reassigned to alternative duties 1 0 0

Total number of employees rehabilitated back to their original work 0 0 8

3. WorkCover action limits

Number of open claims as at 30 June 2014 7 8 116

Percentage of workers compensation expenditure over gross annual

remuneration

0.0038 .0039 0.0126

4. Number of injuries

Number of new workers compensation claims in the financial year 4 4 72

Number of:

• fatalities • lost time injuries • medical treatment only

0 3 1

0 1 3

0 33 39

Total number of whole working days lost 146 56 4303

P 48

07 APPENDICES

Table 28: Work health and safety (WHS) comparative data continued

2013-14 2012-13 2011-12*

5. Cost of workers compensation

Cost of new claims for the financial year $37 151.69 $10 595.33 $333 220.75

Cost of all claims excluding lump sum payments $85 942 $37 870 $1 682 940

Amount paid for lump sum payments (s42, s43, s44) $21 370 $29 231 $1 371 170

Total claims expenditure $107 312 $67 101 $3 054 110

Total amount recovered from external sources (s54) $0 $0 $52 081

Budget allocation for workers compensation $254 000 $320 000 $3 250 000

6. Trends

Injury frequency rate for new lost-time injury/disease for each million

hours worked

1.85 0.97 6.68

Most frequent cause (mechanism) of injury Psychological

Pressures

Body stressing Body stressing

Most expensive cause (mechanism) of injury Manual Handling Body stressing Mental stress

* Column three shows DFEEST and TAFE SA combined data to allow comparison against previous two financial years prior to the

TAFE SA separation from DFEEST on 31 October 2012.

7.11 MANAGING RISK AND FRAUD

As part of its risk management framework, the department has implemented processes for identifying and responding to the risks of

fraud, including any specific risks of fraud that have been identified, or account balances, classes of transactions or disclosures for which a

risk of fraud is likely to exist.

The department has established an internal audit and risk management and business continuity function through its Audit and Risk

Management Committee. This is supported by the department’s Internal Audit and Risk Management and Business Continuity Unit.

The Internal Audit Plan, which is reviewed by the Audit and Risk Management Committee and approved by the Chief Executive, addresses

a number of potential risk areas including internal controls over revenue, information and asset security and expenditure activity.

Complementing this work, the Director, Strategic Finance and Budgets is responsible for ongoing internal reconciling controls over

department revenue and expenditure and liaises with the Manager Internal Audit where abnormal variances are detected. The Strategic

Finance and Budgets section also works closely with the Internal Audit Unit to oversee the implementation and monitoring of DFEEST’s

Financial Management Compliance Program.

7.12 OVERSEAS TRAVEL

For the period 1 July 2013 to 30 June 2014 no departmental staff travelled overseas.

7.13 RECONCILIATION

The department works closely with Reconciliation SA and other state government agencies to achieve the government’s commitment to

reconciliation, and has committed considerable funds to build an environment promoting decision making that is culturally inclusive and

involves Aboriginal people.


07 APPENDICES

RECONCILIATION ACTION PLANThe department developed a new Reconciliation Action Plan, and was the first state government department to achieve a STRETCH

Reconciliation Action Plan endorsement by Reconciliation Australia. All targets, activities and outcomes of the department’s plan

incorporated STRETCH targets aimed at building on the good work already underway with a focus on achieving tangible and measurable

outcomes and longer term strategies are rigorously monitored. The plan further strengthens relationships, acknowledges and respects

Aboriginal culture, improves training, employment and procurement opportunities, and recruitment and retention of Aboriginal people.

The department consulted with a Kaurna Elder and Aboriginal employees to contribute towards the plan, with their recommendations

incorporated into the final plan.

RECONCILIATION WEEKThe department facilitated a variety of cultural activities and events enriched by both Aboriginal and non-Aboriginal employee

participation to celebrate Aboriginal culture during 2013-14.

In keeping with the National Reconciliation Week ‘Let’s Walk the Talk’ theme, the department hosted two signature events during

Reconciliation Week:

• the Constitutional Recognition Workshop built on the information provided in the 2013 workshop series and attracted a prominent

guest speaker to provide employees with further insight and update on the constitutional reform, and

• an Aboriginal Film Festival was hosted in partnership with five other government agencies which offered two film screenings, The

Sapphires and Utopia. This event was promoted to all staff within the five host departments and was well attended by staff members

and their families.

A number of low key, informal ‘tea and talk’ events were also held across the department during Reconciliation Week.

ANNIVERSARY OF APOLOGY DAYThe department continued to recognise the importance of the Anniversary of the Apology Day breakfast. This event was attended by

internal staff, key industry partners and members of the department’s Reconciliation Action Committee.

NAIDOC WEEKEmployees were encouraged to attend NAIDOC Week activities and events.

ABORIGINAL EMPLOYMENT STRATEGY 2010-2015Work continued on the Aboriginal Employment Strategy 2010-2015 – Building a Culturally Inclusive Workforce, which aimed to increase

the participation of Aboriginal people in the department’s workforce.

7.14 REPORTING AGAINST THE CARERS RECOGNITION ACT 2005

The department promoted the Carers Recognition Act 2005 and the Carers Charter on its intranet site to ensure all employees had an

awareness and understanding of this information.

Carer information was also incorporated in the department’s online induction package and occurred through corporate services units

across the department.

7.15 REPORTING AGAINST THE WHISTLEBLOWERS PROTECTION ACT 1993

DFEEST appointed responsible officers for the purposes of the Whistleblowers Protection Act 1993 pursuant to Section 7 of the Public Sector

Act 2009. DFEEST reviewed its policy and procedures as a result of the introduction of the ICAC Act 2012. DFEEST received no whistleblower-

related allegations during the year.

P 50

07 APPENDICES

7.16 URBAN DESIGN CHARTER

Urban design was integrated within the department’s core systems and procedures. Consultants, contract tenders and major contracts

were managed on behalf of the department by DPTI. DFEEST supported DPTI in the preparation of policies, including the impact of our

presence in the local community, with a view to integrating with the urban fabric so that a positive contribution could be made.

To initiate the engagement of consultants to undertake design work, DFEEST collaborated with DPTI to define and/or request specific

urban design principles associated with the project or request their investigation, including:

• ecologically sustainable development initiatives to be considered

• specific site issues such as cultural, political and heritage issues

• corporate parameters (relevant policies, standards and guidelines), and

• specific consultant services required (e.g. tree audits, traffic management surveys, disability access, Indigenous/cultural issues).

DFEEST interacted and communicated with the community through TAFE SA institutes and campuses. With respect to major projects,

the Public Works Committee and DPTI worked on behalf of the department to ensure exposure to a wide range of community views

and scrutiny.

7.17 VET STUDENT ACTIVITY

General note:

The tables and figures in this section are sourced from: NCVER, Australian vocational education and training statistics, Students and Courses 2013.

Unless otherwise stated.

In South Australia, there were 165 700 VET students in 2013, an increase of 16.3 per cent on 20121. Nationally, the number of VET students

decreased by 3.4 per cent in 2013. South Australia was the only jurisdiction to record an increase in 2013.

Table 29: VET students by provider type, South Australia and Australia, 2012 and 2013

South Australia Australia

Provider type 2012 2013 Change Change

TAFE & other government 88 100 94 000 6.7% -5.4%

Private/non-TAFE 48 300 66 100 36.8% -2.7%

Community education 6 100 5 600 -7.8% 14.9%

All providers 142 500 165 700 16.3% -3.4%

Notes:

• Figures are rounded to the nearest 100

• Percentage changes are calculated on non-rounded figures

• Totals may not sum due to the effects of rounding

The 16.3 per cent increase in the number of VET students in South Australia between 2012 and 2013 includes:

• 7.8 per cent increase in young people (aged 15 to 24 years)

• 17.6 per cent increase in females

• 15.0 per cent decrease in indigenous people

• 12.1 per cent increase in people with disability, and

• 3.7 per cent increase in remote and very remote regions in South Australia.

1 The scope is VET delivery by TAFE institutes, registered community education providers and the publicly funded component of other registered providers. It includes fee-for-service delivery by TAFE institutes but excludes VET delivered in schools where the delivery has been undertaken by schools, recreation, leisure and personal enrichment activity, fee-for-service VET delivered by private providers, delivery undertaken at overseas campuses of Australian VET institutions and credit transfer.


07 APPENDICES

Figure 9: VET students in South Australia by cohort, percentage change between 2012 and 2013

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

15-24 years Females Indigenous With a disability

Remote and very remote

All students

% c

han

ge

South Australia accounted for 8.8 per cent of the VET students nationally (1.877 million students), which is above South Australia’s share

of the national population (7.2 per cent of the estimated resident population of Australia at 31 December 20132).

The VET participation rate of persons aged 15 to 64 in South Australia in 2013 was 14.8 per cent, above the national rate of 11.9 per cent.

The South Australian VET participation rate in 2013 increased by two percentage points on the 2012 rate.

2 Source: ABS Cat. No 3101.0—December 2013

Figure 10: South Australian VET students in 2013 by provider type


Private/non-TAFE SA providers 39.9%


56.7%39.9%

3.4%

The number of VET students in South Australia, funded by the Australian and State governments, increased by 21.9 per cent between

2012 and 2013. During the same period the number of VET students in South Australia funded by fee for service fell for both domestic

and international.

P 52

07 APPENDICES

Figure 11: South Australian VET students in 2013 by fund source

Fee-for-service - international 0.7%

Fee-for-service - domestic 8.6%

Commonwealth & state 90.7%

90.7%

8.6%

0.7%

Table 30: VET students by fund source, South Australia and Australia, 2012 and 2013


Fund Source 2012 2013 Change Change

Commonwealth & state 123 300 150 300 21.9% -3.9%

Fee-for-service - domestic 17 400 14 200 -18.6% -1.2%

Fee-for-service - international 1 800 1 200 -30.2% -1.7%

All fund sources 142 500 165 700 16.3% -3.4%

Notes:




Figure 12: VET students in South Australia, percentage change, by qualification level, between 2012 and 2013 Note: All qualifications includes non-Australian Qualifications Framework (AQF) enrolments

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Diploma and higher

Certificate IV

Certificate III

Certificate II

Certificate I

All qualifications

% c

hang

e


07 APPENDICES

Figure 13: South Australian VET students in 2013 by qualification levels

Non-AQF 12.0%

Certificate I 6.1%

Certificate II 20.1%

Certificate III 31.3%

Certificate IV 17.7%

Diploma and higher 12.8%17.7%

31.3%

12.8%12.0%

20.1%

6.1%

The largest percentage increase in VET students in South Australia between 2012 and 2013 was in the age group 25 to 44 years, with an

increase of 23.6 per cent.

Table 31: VET students by age, South Australia and Australia, 2012 and 2013


Age groups (years) 2012 2013 Change Change

15 - 19 29 100 29 800 2.5% -7.1%

20 - 24 24 800 28 300 14.1% -2.1%

25 - 44 55 200 68 200 23.6% -1.6%

45 - 64 30 000 35 700 18.7% -3.4%

65 + 2 700 3 100 13.1% 18.7%

Other 600 600 -0.8% -26.3%

Total 142 500 165 700 16.3% -3.4%

Notes:

• Other includes 14 years and under and not known




P 54

07 APPENDICES

Figure 14: South Australian VET students in 2013 by age group

Others 0.4%

65 years and over 1.9%

45 - 64 years 21.5%

25 - 44 years 41.2%

20 - 24 years 17.1%

15 - 19 years 18%

17.7%

41.2%

18.0%

0.4%1.9%

21.5%

The number of VET students increased across all regions in South Australia between 2012 and 2013. The largest percentage increase

during this period was in the major city region, with an increase of 18.7 per cent.

In 2013, the majority of VET students in South Australia were in the major city region, with 65.5 per cent of the total.

Table 32: VET students by remoteness region, South Australia and Australia, 2012 and 2013


Number Percentage Percentage

Regions2012 2013 Share of

totalChange Share of

totalChange

Major cities 91 500 108 600 65.5% 18.7% 60.2% -1.4%

Inner regional 18 100 20 200 12.2% 12.1% 22.5% -6.3%

Outer regional 21 500 23 700 14.3% 10.3% 11.1% -6.4%

Remote 5 600 5 600 3.4% 0.6% 2.1% -8.3%

Very remote 1 800 2 000 1.2% 13.5% 1.2% -10.0%

Overseas 2 000 1 300 0.8% -36.5% 1.9% 6.1%

Not known 2 100 4 200 2.5% 104.9% 1.0% -12.5%

Total 142 500 165 700 100.0% 16.3% 100.0% -3.4%

Notes:





07 APPENDICES

The number of VET students in South Australia increased between 2012 and 2013 across most of the fields of education, with the

exception of architecture and building. The largest percentage increase during this period was in the natural and physical sciences field

of education, with an increase of 63.9 per cent.

The largest proportion of VET students in South Australia were in the management and commerce field of education, with 19.5 per cent

of total.

Table 33: VET students by fields of education, South Australia and Australia, 2012 and 2013



Field of education2012 2013 Share of


totalChange

Natural and physical sciences 700 1 100 0.7% 63.9% 0.5% 14.4%

Information technology 2 500 3 500 2.1% 42.4% 2.0% 5.7%

Engineering and related technologies 22 700 26 400 15.9% 16.0% 16.9% -2.1%

Architecture and building 7 500 7 500 4.5% -0.6% 6.8% 1.2%

Agriculture, environmental and related studies 4 900 5 100 3.1% 3.7% 3.3% -11.7%

Health 5 600 7 700 4.7% 37.1% 5.0% -6.9%

Education 4 700 6 300 3.8% 32.2% 3.7% 0.1%

Management and commerce 31 200 32 300 19.5% 3.6% 18.7% -16.1%

Society and culture 21 100 28 800 17.4% 36.5% 13.7% 1.9%

Creative arts 2 200 2 800 1.7% 29.1% 2.4% -13.6%

Food, hospitality and personal services 10 100 14 900 9.0% 47.4% 9.2% -10.3%

Mixed field programs 19 100 20 000 12.1% 4.5% 12.3% 8.5%

Subject only - no field of education 10 200 9 500 5.7% -7.3% 5.5% 29.2%

Total 142 500 165 700 100.0% 16.3% 100.0% -3.4%

Notes:




FULL-YEAR TRAINING EQUIVALENTSIn 2013, there were 61 300 full-year training equivalents (FYTE) in South Australia, an increase of 24.7 per cent on 20123. Nationally FYTE

decreased by 2.7 per cent in 2013; South Australia was the only jurisdiction to record an increase in 2013.

3 FYTE of one represents the activity of a student who is training on a full-time basis for one year. These units are based on annual hours of training (720 hours = 1 FYTE)

P 56

07 APPENDICES

Table 34: VET FYTE by provider type, South Australia and Australia, 2012 and 2013

Table 35: VET FYTE by fund source, South Australia and Australia, 2012 and 2013



Provider type2012 2013 Share of


totalChange

TAFE & other government 30 500 32 800 53.5% 7.7% 67.8% -3.5%

Private/non-TAFE 18 300 28 100 45.8% 53.6% 28.3% -0.8%

Community education 400 400 0.7% -1.0% 3.9% -1.8%

All providers 49 200 61 300 100.0% 24.7% 100.0% -2.7%



Fund source2012 2013 Share of


totalChange

Commonwealth & state 44 700 58 600 95.5% 30.9% 86.3% -3.2%

Fee-for-service - domestic 3 300 2 000 3.2% -39.3% 10.7% 3.4%

Fee-for-service - international 1 200 800 1.3% -34.7% 3.0% -6.1%

All fund sources 49 200 61 300 100.0% 24.7% 100.0% -2.7%

Notes:




Notes:




Figure 15: South Australian FYTE in 2013 by provider type


Private/non-TAFE 45.8%


53.5%45.8%

0.7%


07 APPENDICES

HOURS OF DELIVERYIn 2013, there were 44.1 million hours of VET training delivered in South Australia, an increase of 24.7 per cent on 2012. VET hours decreased

nationally by 2.7 per cent in 2013. South Australia was the only jurisdiction to record an increase in 2013.

The 24.7 per cent increase in the number of VET hours in South Australia between 2012 and 2013 includes:

• 53.6 per cent increase by private/non-TAFE providers

• 7.7 per cent increase by TAFE SA

• 1.0 per cent fall in community education providers

Table 36: VET hours by provider type, South Australia and Australia, 2012 and 2013 (‘000 000)

Table 37: VET hours by fund source, South Australia and Australia, 2012 and 2013 (‘000 000)





totalChange

TAFE & other government 21.931 23.623 53.5% 7.7% 67.8% -3.5%

Private/non-TAFE 13.160 20.207 45.8% 53.6% 28.3% -0.8%

Community education 0.312 0.309 0.7% -1.0% 3.9% -1.8%

All providers 35.403 44.14 100.0% 24.7% 100.0% -2.7%



Fund source2012 2013 Share of


totalChange

Commonwealth & state 32.202 42.157 95.5% 30.9% 86.3% -3.2%

Fee-for-service - domestic 2.349 1.426 3.2% -39.3% 10.7% 3.4%

Fee-for-service - international 0.852 0.557 1.3% -34.7% 3.0% -6.1%

All fund sources 35.403 44.14 100.0% 24.7% 100.0% -2.7%

Notes:



Notes:



The number of VET hours in South Australia funded by the Australian and State governments increased by 30.9 per cent between

2012 and 2013. During the same period the number of VET students in South Australia funded by fee for service fell for both domestic

and international.

P 58

07 APPENDICES

COURSE ENROLMENTSIn 2013, there were 206 200 course enrolments in South Australia, an increase of 23.2 per cent on 2012. Course enrolments decreased

nationally by 3.1 per cent in 2013. South Australia had the highest growth rate in the nation, with the Australian Capital Territory and

Western Australia the only other jurisdictions to record an increase.

Table 38: VET course enrolments by provider type, South Australia and Australia, 2012 and 2013


Provider type 2012 2013 Change Change


Private/non-TAFE 53 500 79 000 47.7% -0.9%

Community education Less than 100 0 – -11.3%

All providers 167 300 206 200 23.2% -3.1%

Notes:




Figure 16: VET course enrolments in South Australia in 2013 by provider type

Private/non-TAFE 38.3%


61.7%

38.3%

VET course enrolments in South Australia increased across all AQF qualification levels between 2012 and 2013. The largest percentage

increase during this period was at Certificate II, with an increase of 52.5 per cent.


07 APPENDICES

Figure 17: VET course enrolments in South Australia, percentage change between 2012 and 2013 Note: All qualifications includes non-AQF enrolments

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Diploma and higher

Certificate IV

Certificate III

Certificate II

Certificate I

All quali�cations

% c

hang

e

Figure 18: South Australian VET course enrolments in 2013, by qualification levels

Non-AQF 7.2%

Certificate I 9.4%





31.3%

11.7%7.2%

23.8%

9.4%

SUBJECT ENROLMENTSIn 2013, there were 1 336 500 subject enrolments in South Australia, an increase of 20.5 per cent on 2012. Subject enrolments decreased

nationally by 3.9 per cent in 2013. South Australia was the only jurisdiction to record an increase in 2013.

Table 39: VET subject enrolments by provider type, South Australia and Australia, 2012 and 2013





totalChange

TAFE & other government 637 700 672 900 50.4% 5.5% 64.4% -4.1%

Private/non-TAFE 458 800 651 300 48.7% 42.0% 31.9% -3.0%

Community education 12 700 12 200 0.9% -3.6% 3.7% -7.1%

All providers 1 109 100 1 336 500 100.0% 20.5% 100.0% -3.9%

Notes:




P 60

07 APPENDICES

COURSE COMPLETIONSIn 2012, there were 43 900 course completions in South Australia, an increase of 22.9 per cent on 20114. Nationally, the number of course

completions increased by 12.3 per cent in 2012. South Australia had the second-highest growth rate in the nation behind Victoria

(32.6 per cent).

The number of course completions by TAFE SA increased by 19.3 per cent between 2011 and 2012 in South Australia. For private/non-TAFE

providers course completions increased by 28.2 per cent during the same period.

Table 40: Course completions by provider type, South Australia and Australia, 2011 and 2012





totalChange

TAFE & other government 21 300 25 400 57.8% 19.3% 59.9% 6.0%

Private/non-TAFE 14 500 18 600 42.2% 28.2% 36.1% 23.4%

Community education n.a. n.a. n.a. n.a. 4.0% 34.1%

All providers 35 700 43 900 100.0% 22.9% 100.0% 12.3%

Notes:




• n.a. = not applicable

4 NCVER collects the number of course completions for a full year over a two year period and this leads to a one year lag in reporting of the data. Therefore, 2012 figures are the latest available.

Course completions in Certificate I increased by 47 per cent between 2011 and 2012 in South Australia. The next highest percentage

increase was in Certificate II, with an increase of 46.9 per cent.

Figure 19: VET course completions in South Australia, percentage change between 2011 and 2014

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Diploma and higher

Certificate IV

Certificate III

Certificate II

Certificate I

All quali�cations

% c

hang

e


07 APPENDICES

Preliminary course completions figures for 2013, estimated by the department, shows that in South Australia there were an estimated

53 100 course completions. Of the estimated completions:

• 57 per cent were provided by private/non-TAFE

• 43 per cent were provided by TAFE & other government.

Figure 20: South Australian VET course completions in 2012, by qualification levels

Certificate I 5.2%





33.5%

16.3%

21.8%

5.2%

Table 41: Course completions by provider type, South Australia, 2012 and 2013

South Australia

Number Percentage

Provider type2012 2013

(estimated)Share of

totalChange


Private/non-TAFE 18 600 30 300 57.0% 63.2%

Community education n.a. n.a. n.a. n.a.

All providers 43 900 53 100 100.0% 20.8%

Notes:



• n.a. = not applicable

Source: 2012 - NCVER, Australian vocational education and training statistics, Students and Courses 2013; 2013 – estimated by the

Department of State Development

P 62

07 APPENDICES

7.18 WEBSITE LISTING

The following websites are maintained by the department:

Site Name Internet Address

Apprenticeship and Traineeship Online Application System www.atlas.dfeest.sa.gov.au

Building Family Opportunities www.crm.dfeest.sa.gov.au/BFO/main.aspx

Checkbox www.checkbox.dfeest.sa.gov.au

Online Application System www.oasys.dfeest.sa.gov.au

Registrar of Approved Employers www.TrainingSkillsCommission.sa.gov.au

Skills for All www.skills.sa.gov.au

Student Training Enrolment Logistics Application www.stela.dfeest.sa.gov.au

Training and Skills Commission www.tasc.sa.gov.au

Training Provider Online Application Form www.sfaproviderapplication.training.sa.gov.au

Vocational Education Training Application www.atis.dfeest.sa.gov.au


FINANCIAL STATEMENTS08INDEPENDENT AUDIT REPORT

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2014

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2014

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2014

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2014

DISAGGREGATED DISCLOSURES - EXPENSES AND INCOME FOR THE YEAR ENDED 30 JUNE 2014

DISAGGREGATED DISCLOSURES - ASSETS AND LIABILITIES FOR THE YEAR ENDED 30 JUNE 2014

DISAGGREGATED DISCLOSURES - EXPENSES AND INCOME FOR THE YEAR ENDED 30 JUNE 2013

DISAGGREGATED DISCLOSURES - ASSETS AND LIABILITIES FOR THE YEAR ENDED 30 JUNE 2013

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

P 64

08 FINANCIAL STATEMENTS



P 66




P 68



Note No.

2014 $’000

2013 $’000

Expenses

Employee benefits 5 53 690 138 638Vet funding 6 309 060 270 936Supplies and services 7 34 903 57 326Grants and subsidies 8 130 547 97 091Depreciation and amortisation 9 21 905 22 442Net loss from the disposal of non-current assets 16 156 12Other expenses 10 30 044 7 789

Total expenses 580 305 594 234

Income

Commonwealth grants 12 31 475 44 222Fees and charges 13 44 330 64 841Other grants and contributions 14 2 631 6 020Investment income 15 425 534Other income 17 4 015 1 786

Total income 82 876 117 403

Net cost of providing services 497 429 476 831

Revenues from/payments to SA Government

Revenues from SA Government 18 506 219 434 139Less payments to SA Government 18 (1 411) (8 247)

Total revenues from/payments to SA Government 504 808 425 892

Net result 7 379 (50 939)

Other comprehensive income

Items that will not be reclassified to net resultChanges in revaluation surplus (26 302) (9 298)Change in financial assets available-for-sale revaluation surplus 30 163 (349)

Total other comprehensive income (26 139) (9 647)

Total comprehensive result (18 760) (60 586)

The net result and total comprehensive result are attributable to the SA Government as owner.

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2014


P 70

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2014

Note No.

2014 $’000

2013 $’000

Current assets

Cash and cash equivalents 19 41 560 62 712 Receivables 20 18 159 10 024 Non-current assets classified as held for sale 21 41 090 9 570

Total current assets 100 809 82 306

Non-current assets

Receivables 20 41 50 Investments 29 6 103 5 940 Property, plant and equipment 22 778 017 804 109 Intangibles 23 12 458 11 179

Total non-current assets 796 619 821 278

Total assets 897 428 903 584

Current liabilities

Payables 25 50 155 97 788 Employee benefits 26 5 469 7 022 Provisions 27 208 240 Other current liabilities 28 658 495

Total current liabilities 56 490 105 545

Non-current liabilities

Payables 25 896 527 Employee benefits 26 9 651 12 919 Provisions 27 933 1 080

Total non-current liabilities 11 480 14 526

Total liabilities 67 970 120 071

Net assets 829 458 783 513

Equity

Retained Earnings 30 324 474 313 387 Financial asset available-for-sale revaluation surplus 30 3 499 3 336 Revaluation surplus 30 328 011 354 313 Contributed capital 30 173 474 112 477

Total equity 829 458 783 513

The total equity is attributable to the SA Government as owner.

Unrecognised contractual commitments 31Contingent assets and liabilities 32

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



Note No.

2014$’000

2013 $’000

Cash flows from operating activities Cash outflows

Employee benefit payments (54 769) (142 501)Payments to VET providers (328 469) (235 461)Payments for supplies and services (85 717) (73 305)Payments of grants and subsidies (130 548) (89 499)GST paid to the Australian Taxation Office (ATO) (4 730) (6 830)Payments for paid parental leave scheme (133) (204)Other payments (28 201) (7 703)

Cash used in operations (632 567) (555 503)

Cash inflows

Commonwealth grants 31 475 44 222 Fees and charges 40 486 67 717 Other grants and contributions 2 631 4 606 Interest received - 11 GST recovered from the ATO 16 961 21 042 Dividends received 425 522 Receipts for paid parental leave scheme 150 170Other receipts 4 034 1 175

Cash generated from operations 96 162 139 465

Cash flows from SA Government

Receipts from SA Government 506 219 434 139

Payments to SA Government (1 411) (8 247)

Cash generated from SA Government 504 808 425 892

Net Cash provided by operating activities 36 (31 597) 9 854

Cash flows from investing activities Cash outflows

Purchase of property, plant and equipment (49 222) (64 921)Purchase of intangibles (2 750) (895)

Cash used in investing activities (51 972) (65 816)

Cash inflows

Proceeds from the sale of property, plant and equipment 1 420 -

Cash generated from investing activities 1 420 -

Net cash used in investing activities (50 552) (65 816)


STATEMENT OF CASH FLOWS


P 72

Note No.

2014$’000

2013 $’000

Cash flows from financing activities Cash outflows

Cash transferred as a result of restructuring activities - (60 109)

Cash used in financing activities - (60 109)

Cash inflows

Capital contributions from Government 60 997 112 477

Cash generated from financing activities 60 997 112 477

Net cash provided by financing activities 60 997 52 368

Net increase/(decrease) in cash and cash equivalents (21 152) (3 594)

Cash and cash equivalents at 1 July 2013 62 712 66 306

Cash and cash equivalents at 30 June 2014 19 41 560 62 712


STATEMENT OF CASH FLOWS CONTINUED



Note No.

Revaluation surplus

$’000

Financial asset

available-for-sale

revaluationsurplus

$’000

Retained earnings

$’000

Contributedcapital

$’000

Total$’000

Balance at 30 June 2012 367 900 3 685 380 489 - 752 074

Net result for 2012-13 - - (51 156) - (51 156)

Change in financial assets available-for-sale

revaluation surplus30 - (349) - - (349)

Loss on revaluation of property assets during

2012-1322(a) (9 298) - - - (9 298)

Write off of asset revaluation reserve libraries 22(a) (4 289) - 4 289 - - Contributed capital increases 30 - - - 112 477 112 477 Net assets transferred as a result of

administrative restructure33 - - (20 452) - (20 452)

Total comprehensive result 2012-13 (13 587) (349) (67 319) 112 477 31 222

Balance at 30 June 2013 354 313 3 336 313 170 112 477 783 296

Error correction - - 217 - 217

Restated balance at 30 June 2013 354 313 3 336 313 387 112 477 783 513

Net result for 2013-14 - - 7 379 - 7 379

Change in financial assets available-for-sale

revaluation surplus30 - 163 - - 163

Loss on revaluation of property assets during

2013-1422(a) (26 302) - - - (26 302)

Contributed capital increases 30 - - - 60 997 60 997 Liabilities transferred as a result of administrative

restructure33 - - 3 708 - 3 708

Total comprehensive result 2013-14 (26 302) 163 11 087 60 997 45 945

Balance at 30 June 2014 328 011 3 499 324 474 173 474 829 458


STATEMENT OF CHANGES IN EQUITY

All changes in equity are attributable to the SA Government as owner.


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476

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2 7

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86

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55

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Agency objectives and funding Note 1

Summary of significant accounting policies Note 2

Changes in accounting policies Note 3

Activities and sub-activities Note 4

EXPENSE NOTES

Employee benefits Note 5

Vet funding Note 6

Supplies and services Note 7

Grants and subsidies Note 8

Depreciation and amortisation Note 9

Other expenses Note 10

Auditor's remuneration Note 11

INCOME NOTES

Commonwealth grants Note 12

Fees and charges Note 13

Other grants and contributions Note 14

Investment income Note 15

Net loss from the disposal of non-current assets Note 16

Other income Note 17

Revenues from/payments to SA Government Note 18

ASSET NOTES

Cash and cash equivalents Note 19

Receivables Note 20

Non-current assets classified as held for sale Note 21

Property, plant and equipment Note 22

Intangibles Note 23

Fair value measurement Note 24

Investments Note 29

LIABILITY NOTES

Payables Note 25

Employee benefits Note 26

Provisions Note 27

Other liabilities Note 28

EQUITY NOTES

Equity Note 30

OTHER NOTES

Unrecognised contractual commitments Note 31

Contingent assets and liabilities Note 32

Transferred functions Note 33

After balance day events Note 34

Remuneration of board and committee members Note 35

Cash flow reconciliation Note 36

Financial instruments Note 37

Administered items Note 38

NOTE INDEX


P 80

AGENCY OBJECTIVES AND FUNDINGNOTE 1

A) OBJECTIVES

The objective of DFEEST was to help people build and enhance their skills and education for South Australia to be a smarter and more

innovative state.

DFEEST played a central role in supporting the government’s strategic priorities of ‘growing advanced manufacturing’, ‘realising the

benefits of the mining boom for all’, ‘creating a vibrant city’, ‘every chance for every child’ and ‘premium food and wine from our clean

environment’.

The department undertook a range of functions in order to meet its objectives and contribute to a strong and sustainable economic

future for South Australia. These included:

• coordinating and investing in high quality publicly funded VET

• building skills through workforce planning and skills development programs

• increasing the workforce development and planning culture in South Australian workplaces

• regulation, administration and funding of apprenticeships and traineeships

• managing state funded employment and training support programs

• supporting the government’s strategic direction in the higher education sector

• developing policies and strategies, and delivering programs, that create opportunities for Aboriginal people, young people, people

with a disability and older workers

• fostering innovation through applied science and research to support technology transfer to industry, and

• promoting and supporting digital and technology developments within business, industry and community sectors.

B) FUNDING

The department is predominantly funded by State Government appropriations supplemented by Commonwealth grants. In addition

income is generated from fees and charges.

The financial activities of the department are primarily conducted through a Special Deposit Account with the Department of Treasury

and Finance pursuant to Section 8 of the Public Finance and Audit Act 1987. The Special Deposit Account is used for funds provided by State

Government appropriation, Commonwealth grants and revenues from fees and charges.

C) PRINCIPLES OF CONSOLIDATION

Associates

Associates are all entities over which the department has significant influence but not control, generally accompanying a shareholding of

between 20 per cent and 50 per cent of the voting rights.

The Minister for Employment, Higher Education and Skills has a 100 per cent interest in Austraining International Pty Ltd. Although

the Minister has control over Austraining it is not considered part of the department’s operations. The department cannot influence

the decisions of Austraining, nor can the department dominate the financial and operational policies of Austraining. Consequently,

Austraining has not been consolidated in the accounts nor disclosed as an Associate. The value of Austraining is shown in the Statement

of Financial Position under Investments.

Details of the investment in Austraining are set out in Note 29.

The Minister also has a 25 per cent interest in SABRENet. SABRENet was registered on 28 September 2005 as a non-profit company

limited by guarantee and has been recognised by the ATO as a tax exempt entity. The founding members are the three South Australian

Universities and the South Australian Government. The objects for which the company was established are to be a non-profit institution

to further the use of advanced data networking for the conduct of research and education in South Australia for the benefit of South

Australia and for the purposes of economic and social advancement in Australia generally. While the Minister has significant influence over

SABRENet, the Minister’s interest in SABRENet is limited to the Minister’s use of SABRENet’s asset (the network). That is, the Minister receives

no return for its interest in SABRENet. SABRENet is not accounted for using the equity method as the Minister does not have access to the

residual assets of the entity.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS



SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESNOTE 2

A) STATEMENT OF COMPLIANCE

The department has prepared these financial statements in compliance with section 23 of the Public Finance and Audit Act 1987.

The financial statements are general purpose financial statements. The accounts have been prepared in accordance with relevant

Australian Accounting Standards and comply with Treasurer's Instructions and Accounting Policy Statements promulgated under the

provision of the Public Finance and Audit Act 1987.

The department has applied Australian Accounting Standards that are applicable to not-for-profit entities, as the department is a not-for-

profit entity.

Australian Accounting Standards and interpretations that have recently been issued or amended but are not yet effective have not been

adopted by the department for the reporting period ending 30 June 2014. Refer Note 3.

B) BASIS OF PREPARATION

The preparation of the financial statements requires:

• the use of certain accounting estimates and requires management to exercise its judgement in the process of applying the

department’s accounting policies. The areas involving a higher degree of judgement or where assumptions and estimates are

significant to the financial statements are outlined in the applicable notes

• accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts

of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events are reported

• compliance with accounting policy statements issued pursuant to section 41 of the Public Finance and Audit Act 1987. In the interest

of public accountability and transparency the Accounting Policy Statements require the following note disclosures, that have been

included in these financial statements:

a. revenues, expenses, financial assets and liabilities where the counterparty/transaction is with an entity within the SA Government

as at reporting date, classified according to their nature. A threshold of $100 000 for separate identification of these items applies

b. expenses incurred as a result of engaging consultants (as reported in the Statement of Comprehensive Income)

c. employees whose normal remuneration is equal to or greater than the base executive remuneration level (within $10 000

bandwidths) and the aggregate of the remuneration paid or payable or otherwise made available, directly or indirectly by the

entity to those employees

d. board/committee member and remuneration information, where a board/committee member is entitled to receive income from

membership other than a direct out-of-pocket reimbursement, and

e. employee targeted voluntary separation package (TVSP) information.

The department’s Statement of Comprehensive Income, Statement of Financial Position and Statement of Changes in Equity have been

prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets that have been valued in

accordance with the valuation policy applicable.

The Statement of Cash Flows has been prepared on a cash basis.

The financial statements have been prepared based on a twelve month period and presented in Australian currency. The accounting

policies set out below have been applied in preparing the financial statements for the year ended 30 June 2014 and the comparative

information presented for the year ended 30 June 2013.

C) REPORTING ENTITY

The department is a government department of the State of South Australia, established pursuant to the Public Sector Act 2009. The

department is an administrative unit acting on behalf of the Crown.

The financial statements and accompanying notes reflect the use of assets, liabilities, revenues and expenses controlled or incurred by the

department in its own right. Transactions and balances relating to administered resources are not recognised as departmental income,

expense, assets and liabilities. As administered items are insignificant in relation to the department’s overall financial performance and

position, they are disclosed in summary in Note 38 Administered Items.

Except as otherwise disclosed, administered items are accounted for on the same basis and using the same accounting policies as for

departmental items.


P 82

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED

NOTE 2

D) TRANSFERRED FUNCTIONS

As published in the SA Government Gazette (dated 4.10.2012, p 4584) the TAFE SA Act 2012 (no 28 of 2012) came into operation on

1 November 2012.

As published in the SA Government Gazette (dated 4.10.2012 p 4586), the proclamation of TAFE SA resulted in the transfer of various assets,

rights and liabilities from the Minister for Employment, Higher Education and Skills to TAFE SA. Refer Note 33 Transferred Functions.

In June 2013, the Chief Executives of DFEEST and TAFE SA authorised the transfer of approximately 100 staff from DFEEST to TAFE SA

pursuant to Section 9 of the Public Sector Act 2009. These transfers were in accordance with a decision taken by the TAFE SA Board to

establish autonomous corporate services within TAFE SA. The financial effect of this machinery of government change has been reflected

in the financial statements as transferred functions effective from 1 July 2013.

E) COMPARATIVE INFORMATION

The presentation and classification of items in the financial statements are consistent with prior periods except where specific accounting

standards and/or Accounting Policy Statements has required a change. Where presentation or classification of items in the financial

statements has been amended, comparative amounts have been reclassified unless reclassification is impracticable.

The restated comparative amounts do not replace the original financial statements for the preceding period.

As detailed within Note 33, TAFE SA was proclaimed as a Statutory Authority from 1 November 2012 and all assets, liabilities and

employees relating to TAFE SA within DFEEST were transferred out to the new entity on that date. Consequently, DFEEST comparative

amounts include TAFE SA activities in 2012-13 relating to the period 1 July 2012 to 31 October 2012.

F) INCOME AND EXPENSES

Income and expenses have been classified according to their nature and have not been offset unless required or permitted by a specific

accounting standard, or where offsetting reflects the substance of the transaction or other event.

Income

Income is recognised to the extent that it is probable that the flow of economic benefits to the department will occur and can be reliably

measured.

The following are specific recognition criteria:

• Income from fees and charges is derived from the provision of goods and services to other SA government agencies and to other

clients and is recognised when invoices are raised.

• Income from disposal of non-current assets is recognised when control of the asset has passed to the buyer and determined by

comparing proceeds with carrying amount.

• Income from grants is recognised upon receipt of funding.

• Interest income is recognised as it accrues. Dividend income is recognised only when it is declared.

• Contribution income is recognised when control of the contribution or the right to receive the contribution and the income

recognition criteria are met.

• Appropriations for program funding are recognised as revenues when the department obtains control over the funding. Control over

appropriations is normally obtained upon their receipt.

Payments to the SA Government include the payment of surplus cash pursuant to the cash alignment policy. Revenues from SA

Government include the return of surplus cash pursuant to the cash alignment policy to DFEEST.

Expenses

Expenses are recognised to the extent that it is probable that the flow of economic benefits from the department will occur and can be

reliably measured.

The following are specific recognition criteria:

Employee benefits expense

Employee benefits expense includes all costs related to employment including wages and salaries, non-monetary benefits and leave

entitlements. These are recognised when incurred.




NOTE 2

In regards to superannuation expenses, the amount charged to the Statement of Comprehensive Income represents the contributions

made by the department to the superannuation plan in respect of current services of current departmental staff. The Department of

Treasury and Finance centrally recognises the superannuation liability in the whole of government financial statements.

Grant expenses

Grants are amounts provided by the department to entities for capital, specific or recurrent purposes and the name or category

reflects the use of the grant. The grants given are usually subject to terms and conditions set out in the contract, correspondence, or

by legislation. The grants are paid when the conditions set out in the contract or correspondence are met.

G) CURRENT AND NON-CURRENT CLASSIFICATION

Assets and liabilities are characterised as either current or non-current in nature. Assets and liabilities that are sold, consumed or realised

as part of the normal operating cycle even when they are not expected to be realised within twelve months after the reporting date have

been classified as current assets or current liabilities. All other assets and liabilities are classified as non-current.

Where asset and liability line items combine amounts expected to be realised within twelve months and more than twelve months, the

department has separately disclosed the amounts expected to be recovered or settled after more than twelve months.

H) EVENTS AFTER THE END OF THE REPORTING PERIOD

Adjustments are made to amounts recognised in the financial statements, where an event occurs after 30 June and before the date the

financial statements are authorised for issue, where those events provide information about conditions that existed at 30 June.

Note disclosure is made about events between 30 June and the date the financial statements are authorised for issue where the events

relate to a condition which arose after 30 June and which may have a material impact on the results of subsequent years (refer to Note 34).

I) CASH AND CASH EQUIVALENTS

Cash and cash equivalents in the Statement of Financial Position include cash at bank and on hand.

For the purposes of the Statement of Cash Flows, cash and cash equivalents includes cash at bank and cash on hand.

Cash is measured at nominal value.

J) RECEIVABLES

Receivables include amounts receivable from goods and services, GST input tax credits recoverable, prepayments and other accruals.

Receivables arise in the normal course of providing goods and services to other government agencies and to the public. Receivables

are generally receivable within 30 days after the issue of an invoice or the goods/services have been provided under a contractual

arrangement.

The recoverability of receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written off when identified.

An allowance for doubtful debts is raised when there is objective evidence that the department will not be able to collect the debt.

K) NON-CURRENT ASSETS HELD FOR SALE

Non-current assets are classified as held for sale and stated at the lower of their carrying amount and fair value less costs to sell if their

carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as

met only when the sale is highly probable and the asset’s sale is expected to be completed one year from the date of classification.

Non-current assets classified as held for sale are presented separately from the other assets in the Statement of Financial Position.

L) FINANCIAL ASSETS (INVESTMENTS)

In accordance with AASB 139 other financial assets are classified into the following specified categories: financial assets 'at fair value

through profit or loss', 'held-to-maturity' investments, 'available-for-sale' financial assets, and 'loans and receivables'. The classification

depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

Available-for-sale financial assets

Certain shares held are classified as being available-for-sale and are stated at fair value less impairment. Gains and losses arising from

changes in fair value are recognised directly in the financial assets available-for-sale revaluation surplus, until the investment is disposed of


P 84


NOTE 2

or is determined to be impaired, at which time the cumulative gain or loss previously recognised in the financial assets available-for-sale

revaluation surplus is included in profit or loss for the period. This category includes investments classified as ‘available-for-sale’ and any

investments that do not fit the definitions for inclusion in any of the categories contained in AASB 139.

M) PROPERTY, PLANT AND EQUIPMENT

Non-current assets are initially recorded at cost or at the value of any liabilities assumed, plus any incidental cost involved with the

acquisition. Non-current assets (excluding land) are subsequently measured at fair value less accumulated depreciation. Where assets are

acquired for no consideration, or minimal value, they are recorded at their fair value in the Statement of Financial Position. However, if the

assets are acquired at no or nominal value as part of a restructure of administrative arrangements then the assets are recognised at book

value, i.e. the amount recorded by the transferor public authority immediately prior to the restructure.

Componentisation of complex assets is only performed when the complex asset’s fair value at the time of acquisition is greater than

$1 million.

Revaluation of non-current assets

All non-current assets are valued at either market value or written down current cost (a proxy for fair value); and revaluation of non-current

assets or group of assets is only performed when its fair value at the time of acquisition is greater than $1 million and estimated useful life

is greater than three years.

Every three years, the department revalues its land, buildings, and improvements. However, if at any time management considers that the

carrying amount of an asset materially differs from its fair value, then the asset will be revalued regardless of when the last valuation took

place. Non-current assets that are acquired between revaluations are held at cost until the next valuation, where they are revalued to

fair value.

Any revaluation increment is credited to the revaluation surplus, except to the extent that it reverses a revaluation decrement of the same

asset class previously recognised as an expense, in which case the increase is recognised as income in the Statement of Comprehensive

Income.

Any revaluation decrement is recognised in the Statement of Comprehensive Income as an expense, except to the extent that it offsets

a previous revaluation increment for the same asset class, in which case the decrease is debited directly to the revaluation surplus to the

extent of the credit balance existing in the revaluation surplus for that asset class.

For buildings and improvements revaluations, any accumulated depreciation as at the revaluation date is eliminated against the gross

carrying amounts of the assets and the net amounts are restated to the revalued amounts of the asset.

The valuation methodology applied to specific classes of non-current assets under revaluations is as follows:

Land

Land is recorded on the basis of market value. Valuations for land were conducted as at 30 June 2012 by Liquid Pacific, independent

valuers, on the basis of market value. As at 30 June 2013 and 30 June 2014 properties classified as held for sale were valued in accordance

with the principles outlined in the note titled ‘Non-current assets held for sale’.

Buildings and Improvements

Buildings and improvements are valued at market value or written down current cost which is considered to be equivalent to fair value.

The building data provided in the statements relates specifically to buildings, paved areas, utility reticulation, fencing, sheds and other site

infrastructure assets. Valuations for building and infrastructure assets were conducted as at 30 June 2012 by Liquid Pacific, independent

valuers, on the basis of market value or written down current cost. As at 30 June 2013 and 30 June 2014, properties classified as held for

sale were valued in accordance with the principles outlined in the note titled ‘Non-current assets held for sale’.

Buildings under construction are recorded as work in progress and are valued at cost.

Plant and Equipment

Items of plant and equipment are recorded at cost less accumulated depreciation (deemed fair value).

All Plant and Equipment assets with a value of $10 000 or greater are capitalised.

Items under $10 000 are recorded in the Statement of Comprehensive Income as an expense in the accounting period in which

they are acquired.




NOTE 2

Heritage Assets

Heritage assets are recorded at fair value (deemed) and recognised when valued at greater than $10 000.

Intangibles

An intangible asset is an identifiable non-monetary asset without physical substance. Intangible assets are measured at cost. Following

initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses.

The useful lives of intangible assets are assessed to be either finite or indefinite. The department only has intangible assets with finite lives.

The amortisation period for the intangible assets is reviewed on an annual basis.

The acquisition of or internal development of software is capitalised only when the expenditure meets the definition criteria (identifiability,

control and the existence of future economic benefits) and recognition criteria (probability of future economic benefits and cost can be

reliably measured) and when the amount of expenditure is greater than or equal to $10 000.

All research and development costs that do not meet the capitalisation criteria outlined in AASB 138 are expensed.

Fair Value measurement

AASB 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction

between market participants, in the principal or most advantageous market, at the measurement date.

The department classifies fair value measurement using the following fair value hierarchy that reflects the significance of the inputs used

in making the measurements, based on the data and assumptions used in the most recent revaluation.

• Level 1 – traded in active markets and is based on unadjusted quoted prices in active markets for identical assets or liabilities that the

entity can access at measurement date.

• Level 2 – not traded in an active market and are derived from inputs (inputs other than quoted prices included within level 1) that are

observable for the asset, either directly or indirectly.

• Level 3 – not traded in an active market and are derived from unobservable inputs.

The valuation processes and fair value changes are reviewed by the Director, Finance and the Audit Risk and Management Committee at

each reporting date.

Non-financial assets

In determining fair value, the department has taken into account the characteristic of the asset (e.g. condition and location of the asset

and any restrictions on the sale or use of the asset); and the asset’s highest and best use (that is physically possible, legally permissible,

financially feasible).

The department’s current use is the highest and best use of the asset unless other factors suggest an alternative use is feasible. As the

department did not identify any factors to suggest an alternative use, fair value measurement was based on current use.

The carrying amount of non-financial assets with a ‘fair value’ at the time of acquisition that was less than $1 million or had an

estimated useful life that was less than three years’ are deemed to approximate fair value.

Refer to Note 21, 22, and 24 for disclosure regarding fair value measurement techniques and inputs used to develop fair value

measurements for non-financial assets.

N) IMPAIRMENT

All non-current assets are tested for indications of impairment at each reporting date. Where there is an indication of impairment, the

recoverable amount is estimated. An amount by which the asset’s carrying amount exceeds the recoverable amount is recorded as an

impairment loss.

For revalued assets an impairment loss is offset against the revaluation surplus.

O) DEPRECIATION AND AMORTISATION OF NON-CURRENT ASSETS

All non-current assets, having a limited useful life, are systematically depreciated/amortised over their useful lives in a manner that reflects

the consumption of their service potential. Amortisation is used in relation to intangible assets such as software, while depreciation is

applied to tangible assets such as property, plant and equipment.


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NOTE 2

Assets’ residual values, useful lives and amortisation methods are reviewed and adjusted if appropriate, on an annual basis.

Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are

accounted for prospectively by changing the time period or method, as appropriate, which is a change in accounting estimate.

Land and non-current assets held for sale are not depreciated. In addition, Heritage assets are not depreciated.

Depreciation/amortisation is calculated on a straight line basis over the estimated useful life of the following classes of assets as follows:

Class of asset Useful life (years)

Buildings 15-80

Improvements 5-50

Paved areas 40-50

Computing and communication equipment 2-20

Other plant and equipment 1-45

Intangibles 10

P) PAYABLES

Payables include creditors, accrued expenses and employment on-costs and Paid Parental Leave Scheme Payable.

Creditors represent the amounts owing for goods and services received prior to the end of the reporting period that are unpaid at the end

of the reporting period. Creditors include all unpaid invoices received relating to the normal operations of the department.

Accrued expenses represent goods and services provided by other parties during the period that are unpaid at the end of the reporting

period and where an invoice has not been received.

The Paid Parental Leave Scheme Payable represents amounts which the department has received from the Commonwealth Government

to forward onto eligible employees via the department’s standard payroll processes. That is, the department is acting as a conduit through

which the payment to eligible employees is made on behalf of the Family Assistance Office.

All payables are measured at their nominal amount, are unsecured and are normally settled within 30 days from the date of the invoice or

date the invoice is first received.

Employee benefits on-costs include superannuation contributions, workers' compensation and payroll tax with respect to outstanding

liabilities for salaries and wages, long service leave, annual leave and skills and experience retention leave.

The department makes contributions to several State Government and externally managed superannuation schemes. These contributions

are treated as an expense when they occur. There is no liability for payments to beneficiaries as they have been assumed by the respective

superannuation schemes. The only liability outstanding at balance date relates to any contributions due but not yet paid to the South

Australian Superannuation Board and externally managed schemes.

Q) EMPLOYEE BENEFITS AND EMPLOYMENT RELATED LIABILITIES

Liabilities have been established for various employee benefits arising from services rendered by employees to balance date. Employee

benefits include entitlements to wages and salaries, long service leave and annual leave. Long-term benefits are measured at present

value and short-term employee benefits are measured at nominal amounts.

Employment related expenses include on-costs such as employer superannuation and payroll tax on employee entitlements together

with the workers’ compensation insurance premium. These are reported under Payables as on-costs on employee benefits (refer Note 25).

Salaries, wages, annual leave, skills and experience retention leave, non-attendance days and sick leave

Liabilities for salaries and wages are measured as the amount unpaid at the reporting date at remuneration rates current at reporting date.

The annual leave liability and the skills and experience retention leave liability is expected to be payable within twelve months and is

measured at the undiscounted amount expected to be paid. In the unusual event where salary and wages, annual leave and skills and

experience retention leave liability are payable later than 12 months, the liability will be measured at present value.




NOTE 2

No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees is

estimated to be less than the annual entitlement for sick leave.

Long service leave

The liability for long service leave is measured as the present value of expected future payments to be made in respect of services

provided by employees up to the end of the reporting period using the projected unit credit method.

The estimated liability for long service leave is based on actuarial assumptions over expected future salary and wage levels, experience of

employee departures and periods of service. These assumptions are based on employee data across SA government entities. Expected

future payments are discounted using market yields at the end of the reporting period on government bonds with durations that match,

as closely as possible, the estimated future cash outflows.

R) PROVISIONS

A liability has been reported to reflect unsettled workers' compensation claims. The workers' compensation provision is based on an

actuarial assessment performed by the Public Sector Workforce Relations Division of the Department of the Premier and Cabinet. The

provision is for the estimated cost of ongoing payments to employees as required under current legislation.

Provisions are recognised when the department has a present obligation as a result of a past event, it is probable that an outflow of

resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of

the obligation.

When the department expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset but

only when the reimbursement is virtually certain. The expense relating to any provision is presented in the Statement of Comprehensive

Income net of any reimbursement.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation

at the Statement of Financial Position date. If the effect of the time value of money is material, provisions are discounted for the time value

of money and the risks specific to the liability.

S) LEASES

The department has entered into a number of operating lease agreements, as lessee, for buildings and other facilities where the lessors

effectively retain all risks and benefits incidental to ownership of the items held under the operating leases.

Operating lease payments are recognised as an expense in the Statement of Comprehensive Income on a straight-line basis over the lease

term. The straight-line basis is representative of the pattern of benefits derived from the leased assets.

Details of commitments of current non-cancellable operating leases are disclosed at Note 31.

T) ACCOUNTING FOR TAXATION

The department is not subject to income tax. The department is liable for payroll tax, fringe benefits tax, goods and services tax (GST),

emergency services levy and local government rate equivalents.

Income, expenses and assets are recognised net of the amount of GST except:

• when the GST incurred on a purchase of goods or services is not recoverable from the ATO, in which case the GST is recognised as part

of the cost of acquisition of the asset or as part of the expense item applicable, and

• receivables and payables, which are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the Statement of

Financial Position.

Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows arising from investing and

financing activities, which is recoverable from, or payable to, the ATO is classified as part of operating cash flows.

Unrecognised Contractual Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to the

ATO. If GST is not payable to, or recoverable from the ATO, the commitments and contingencies are disclosed on a gross basis.


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NOTE 2

CHANGES IN ACCOUNTING POLICIESNOTE 3

The department did not voluntarily change any of its accounting policies during 2013-14.

In accordance with the new AASB 13 Fair Value Measurement, which became effective for the first time in 2013-14, the department has:

• reviewed its fair value valuation techniques (primarily independent valuation appraisal) for non-financial assets to ensure they are

consistent with the standard. Previously, the department used the cost approach or the market approach to determine fair value. The

department will continue to measure its non-financial assets using either the cost or market approach. The application of AASB 13 has

not had a material impact on the fair value measurements, and

• included additional disclosures where required to assist users in assessing the valuation techniques and inputs used to ascertain fair

value measurements used for asset and liability measurements.

Fair value hierarchy and other information are provided in Notes 21, 22 and 24.

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective, have not been

adopted by the department for the period ending 30 June 2014. The department has assessed the impact of the new and amended

standards and interpretations and considers there will be no impact on the accounting policies or the financial statements of the department.

U) FINANCIAL GUARANTEES

At the time a financial guarantee contract is issued, it is recognised as a liability initially measured at fair value. If there is a material

increase in the likelihood that the guarantee may have to be exercised, the financial guarantee is measured at the higher of the amount

determined in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognised less

cumulative amortisation, where appropriate.

In the determination of fair value, consideration is given to the following factors:

• the overall capital management / prudential supervision framework in operation

• the protection provided by the state government by way of funding should the probability of default increase

• the probability of default by the guaranteed party, and

• the likely loss to the department in the event of default.

The department has reviewed its financial guarantees and determined that there is no material liability to be recognised for financial

guarantee contracts as at 30 June 2014 (there was no material liability recognised for financial guarantee contracts in 2013).

Whilst no liability has been recognised for financial guarantee contracts, further note disclosures relating to financial guarantees are

contained at Note 32 Contingent Assets and Liabilities.

V) UNRECOGNISED CONTRACTUAL COMMITMENTS AND CONTINGENT ASSETS AND LIABILITIES

Commitments include those operating, capital and outsourcing commitments arising from contractual or statutory sources and are

disclosed at their nominal value.

Contingent assets and contingent liabilities are not recognised in the Statement of Financial Position, but are disclosed by way of a note

and, if quantifiable, are measured at nominal value.

W) ROUNDING

All amounts in the financial statements and accompanying notes have been rounded to the nearest thousand dollars ($’000).



ACTIVITIES AND SUB-ACTIVITIESNOTE 4

Activities - Employment and Skills Formation

Description/Objective: To strengthen the economic prosperity and social well-being of South Australians through strategic employment,

skills formation and workforce development.

Sub-activities - Vocational Education and Training

Coordinate high quality VET through TAFE SA and other registered training organisations through:

• the investment of public funds to support individuals and employers to develop workforce skills, including through apprenticeships

and traineeships

• supporting post-secondary training and education to meet industry requirements, and


Sub-activities - Learning, Workforce Participation and Workforce Development

Address the state’s economic development, productivity and social inclusion objectives by:

• providing opportunities for people to participate in employment, training, skills development and ACE

• meeting the current and future labour and skill needs of industry, and


Sub-activities – Quality Assurance and Regulatory Services

Administer the state’s further education and training system through:

• quality assurance of Skills for All training providers and other training organisations in accordance with contract standards

• quality oversight of the state vocational education system through the Training and Skills Commission

• regulating and administering the apprenticeship and traineeship system, and


Sub-activities - International and Higher Education

Support South Australian higher education institutions, both local and international, in sustaining the state’s reputation for quality

teaching and learning for both domestic and international students.

Provide high level strategic policy advice to the Minister on higher education policy and planning.

Activities - Science, Technology and Information Economy

Description/Objective: Provide the Government with a strategic and coordinated focus in science, technology and information economy

policy development and program delivery, supporting better linkages between research institutions and industry, to support state

productivity.

Sub-activities - Science and Innovation

Provide high level strategic advice to the Minister on maximising economic, environmental and social benefits from the state’s

scientific and research performance and investments by:

• identifying strategic priorities for state government investment in science and research

• raising awareness and understanding of the benefits of science and innovation amongst government, business and the community

• facilitating coordinated and strategic bids for Commonwealth government grants, and

• facilitating the coordination of education and research activity with end-user (industry) requirements to maximise the benefits for

South Australia.

Sub-activities - Information Economy

Provide high level strategic policy advice to the Minister and Government on the information economy and the information and

communications technology sector with particular regards to its uptake and effective use to maximise economic benefits across the

state through:

• developing strategy and facilitating programs and projects for promoting the information economy and supporting the

deployment, availability and effective use of broadband across the state


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EMPLOYEE BENEFITSNOTE 5

2014 $’000

2013 $’000

Salaries and wages (including annual leave) 40 797 109 134 Superannuation 4 525 11 414 Payroll tax 2 844 6 268 Long service leave 1 013 4 014 Skills and experience retention leave 99 948 Workers compensation 25 1 602 TVSP 4 026 4 717 Other employee related costs 361 541

53 690 138 638

TVSP 2014 $’000

2013 $’000

Amount paid to these employees:

TVSPs 4 026 4 717

Leave paid to those employees 1 154 1 238

5 180 5 955

Funding from the Department of Treasury and Finance (refer note 18) 3 898 4 866

Net cost to the department 1 282 1 089

2014 Number

2013 Number

The number of employees who were paid TVSPs during the reporting period 32 39

ACTIVITIES AND SUB-ACTIVITIES CONTINUED NOTE 4

• supporting strategic investments projects that deliver on the information economy objectives, and

• implementing initiatives that support digital literacy across the community.

Sub-activities – Bioscience Industry Development

Develop the bioscience industry by providing assistance in business development, finance, infrastructure and marketing.



EMPLOYEE BENEFITS CONTINUEDNOTE 5

2014 Number of employees

(including TVSP)

2013 Number of employees

(including TVSP)

$138 000 to $141 499 * n/a 4$141 500 to $151 499 1 1$151 500 to $161 499 3 2$161 500 to $171 499 - 4$171 500 to $181 499 2 2$181 500 to $191 499 2 -$191 500 to $201 499 - 1$201 500 to $211 499 2 3$221 500 to $231 499 Ο 1 3$231 500 to $241 499 1 -$261 500 to $271 499 - 1$271 500 to $281 499 1 -$281 500 to $291 499 - 1$301 500 to $311 499 1 -$311 500 to $321 499 Δ 1 -$341 500 to $351 499 - 1$361 500 to $371 499 1 -$371 500 to $381 499 Δ 1 -$381 500 to $391 499 Δ 1 -

Total number of employees 18 23

* This band has been included for the purposes of reporting comparative figures based on the executive base level remuneration rate

for 2012-13.

Δ This bandwidth includes employees that have received TVSP's during 2013-14.

Ο This bandwidth includes employees that have received TVSP's during 2012-13.

REMUNERATION OF EMPLOYEES

The number of employees whose remuneration received or receivable falls within the following bands:

The table includes all employees who received remuneration equal to or greater than the base executive remuneration level during the

year. Remuneration of employees reflects all costs of employment including salaries and wages, superannuation contributions, separation

packages, fringe benefits tax and any other salary sacrifice benefits. The total remuneration received by these employees for the year was

$4.2 million ($4.4 million).

For 2013-14, the above figures included three non-executive employees (0 in 2012-13) who took a TVSP during the year. The total

remuneration received by non-executive employees in 2013-14 was $1.2 million.


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VET FUNDINGNOTE 6

2014 $’000

2013 $’000

Funding to TAFE SA for VET 192 545 165 832 Funding to other providers for VET 116 515 105 104

Total VET Funding 309 060 270 936

VET funding paid/payable to entities within the SA Government

Funding to TAFE SA for VET 192 545 165 832 Funding to other providers for VET 1 406 3 640

Total VET funding to SA Government entities 193 951 169 472

SUPPLIES AND SERVICESNOTE 7

2014 $’000

2013 $’000

Printing and consumables 318 3 891 Minor works, maintenance and equipment 1 929 5 056 Information technology infrastructure and communication 13 012 11 895 Fees - contracted services (including consultants) 6 846 12 727 Trainee and apprenticeship reimbursements 4 256 2 680 Utilities 315 2 809 Cleaning 601 2 615 Vehicle and travelling expenses 880 3 084 Rentals and leases 5 030 5 384 Books, materials and copyright 4 950 Satac and student support 146 1 053 Other 1 566 5 182

Total supplies and services 34 903 57 326

Supplies and services provided by entities within the SA Government

Minor works, maintenance and equipment 1 542 4 435 Information technology infrastructure and communication 1 481 1 922 Fees - contracted services (including consultants) 1 637 4 574 Utilities 216 696 Cleaning 560 2 253 Vehicle and travelling expenses 571 1 376 Rentals and leases 4 858 4 537 Other 269 582

Total supplies and services by SA Government entities 11 134 20 375

The total supplies and services amount disclosed includes GST amounts not-recoverable from the ATO due to the department not holding

a valid tax invoice or payments relating to third party arrangements.



CONSULTANCY

The number and dollar amount of consultancies paid/payable (included in supplies and services) that fell within the following bands:

No. 2014 $’000

No. 2013 $’000

Below $10 000 1 5 1 5 Between $10 000 and $50 000 3 75 2 45 Above $50 000 2 119 4 264

Total paid/payable to the consultants engaged (GST exclusive) 6 199 7 314

SUPPLIES AND SERVICES CONTINUEDNOTE 7

GRANTS AND SUBSIDIESNOTE 8

2014 $’000

2013 $’000

Grants provided to TAFE SA 73 580 41 237 Employment programs 19 629 20 542 VET programs 7 542 6 507 Science and information economy programs 15 292 14 093 Tertiary student transport concessions 10 996 10 602 National training infrastructure program 660 1 510 Other specific grants 2 848 2 600

Total grants and subsidies 130 547 97 091

Grants and subsidies paid/payable to entities within the SA Government

Grants provided to TAFE SA 73 580 41 237 Employment programs - 435 VET programs 176 281 Science and information economy programs 6 964 7 440 Tertiary student transport concessions 10 996 10 602 Other specific grants 1 780 1 796

Total grants and subsidies to SA Government entities 93 496 61 791

DEPRECIATION AND AMORTISATIONNOTE 9

2014 $’000

2013 $’000

Buildings and improvements 19 630 19 604 Plant and equipment 870 1 409 Library - 673 Intangibles 1 405 756

Total depreciation and amortisation 21 905 22 442

All library assets transferred to TAFE SA as at 1 November 2012.


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2014 $’000

2013 $’000

Productivity Places Program 13 140 15 158 Foundation Skills Workforce Development Project 690 1 499 Language Literacy & Numeracy Delivery Statewide - 2 126 Industry and Indigenous Skills Centre Program 90 844 Australian Flexible Learning Framework 106 - Joint Group Training Program 1 148 1 097 Aged Care Workforce - 197 Remote Indigenous Public Internet Access 152 425 Community Development Employment Projects program - 418 TAFE Fee Waivers for Childcare Qualifications 1 226 861 Training Places for Single and Teen Parents 2 227 3 898 Skills Reform 12 696 17 314 Other Specific Commonwealth Revenue - 385

Total Commonwealth grants 31 475 44 222

COMMONWEALTH GRANTSNOTE 12

OTHER EXPENSESNOTE 10

2014 $’000

2013 $’000

TVSP reimbursement to TAFE SA 29 712 7 490 Audit fees (refer note 11) 216 207 Allowance for doubtful debts and debt write-offs 116 86 Other - 6

Total other expenses 30 044 7 789

AUDITOR’S REMUNERATIONNOTE 11

2014 $’000

2013 $’000

Audit fees paid/payable to the Auditor-General's Department relating to the audit of

financial statements 213 180

Other audit fees 3 27

Total auditor's remuneration paid/payable 216 207

No other services were provided by the Auditor-General’s Department.

2013-14 COMMITMENTS

$13.1 million in Commonwealth revenue was received for the National Partnership Agreement on the Productivity Places Program in

2013-14. All revenue was fully spent in 2013-14.

The 2013-14 expenditure associated with the Foundation Skills Workforce Development National Partnership was funded from a 2012-13

carryover. Similarly, $0.7 million was received late in the financial year which is unspent and will be carried over to fund 2014-15 commitments.



COMMONWEALTH GRANTS CONTINUEDNOTE 12

$0.1 million in Commonwealth revenue was received for the Industry & Indigenous Skills Program. The program has completed and no

2014-15 commitments exist.

$1.1 million in Commonwealth revenue was received for the Joint Group Training Program in 2013-14. All revenue other than $55 636 was

fully spent. The remainder is committed to be spent in 2014-15.

Revenue received associated with the Remote Indigenous Public Internet Access program in 2013-14 totalled $0.2 million and was spent

in full.

$1.2 million in Commonwealth revenue was received for the National Partnership Agreement on Child Care Fee Waiver Qualifications in

2013-14. All revenue was fully spent in 2013-14 as part of the Skills for All training initiative.

$2.2 million in Commonwealth revenue was received for the National Partnership Agreement on Training Places for Single and Teen

Parents in 2013-14. All revenue was fully spent in 2013-14 as part of the Skills for All training initiative.

$12.67 million in Commonwealth revenue was received for the National Partnership Agreement on Skills Reform in 2013-14. All revenue

was fully spent in 2013-14 as part of the Skills for All training initiative.

2012-13 COMMITMENTS

$15.2 million in Commonwealth revenue was received and fully spent for the National Partnership Agreement on the Productivity

Places Program.

$1.5 million was received in 2012-13 relating to the Foundation Skills Workforce Development National Partnership Agreement. A minor

amount was spent in 2012-13 while the remainder funded the 2013-14 program commitments via a year end carryover.

$0.8 million was received for the Industry & Indigenous Skills Centre Program in 2012-13. A carryover was submitted at year end to support

2013-14 program commitments.

$0.4 million in Commonwealth revenue was received in 2012-13 for the Remote Indigenous Internet Access program. Of this amount

$0.2 million was not spent and carried over to fund 2013-14 commitments.

Commonwealth National Partnership revenue received in 2012-13 for the Training Places for Single & Teen Parents, TAFE Fee Waivers for

Childcare Qualifications and VET Skills Reform programs was spent in full as part of the Skills for All training initiative.

FEES AND CHARGESNOTE 13

2014 $’000

2013 $’000

Corporate services recharges to TAFE SA 13 188 19 945 Infrastructure recharges to TAFE SA 23 023 12 100 Sales/fee for service revenue 5 407 20 806 Student enrolment fees and charges - 10 937 Other user fees and charges 2 712 1 053

Total fees and charges received/receivable 44 330 64 841

Fees and charges received/receivable from entities within the SA Government

Corporate services recharges to TAFE SA 13 188 19 945 Infrastructure recharges to TAFE SA 23 023 12 100 Sales/fee for service revenue 5 407 5 285 Student enrolment fees and charges - 334 Other user fees and charges 1 963 114

Total fees and charges from SA Government entities 43 581 37 778


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OTHER GRANTS AND CONTRIBUTIONS

INVESTMENT INCOME

NOTE 14

NOTE 15

2014 $’000

2013 $’000

Grants and subsidies revenue 500 1 114 Miscellaneous contributions - 130 Donations 76 42 Grants from entities within the SA Government 2 055 4 734

Total other grants and contributions 2 631 6 020

2014 $’000

2013 $’000

Dividends 425 533 Interest from entities external to the SA Government - 1

Total investment income 425 534

2014 $’000

2013 $’000

Land and buildings

Proceeds from disposals 1 420 - Less: net book value of assets disposed (1 397) -

23 -

Plant and equipment

Proceeds from disposals - - Less: net book value of assets disposed (179) (12)

(179) (12)

Total assets

Total proceeds from disposal 1 420 - Less: net book value of assets disposed (1 576) (12)

Total net loss from the disposal of non-current assets (156) (12)

NET LOSS FROM THE DISPOSAL OF NON-CURRENT ASSETSNOTE 16




OTHER INCOMENOTE 17

2014 $’000

2013 $’000

Recoup of salaries 351 666 Sundry income 3 664 1 120

Total other income 4 015 1 786

REVENUES FROM/PAYMENTS TO SA GOVERNMENTNOTE 18

2014 $’000

2013 $’000

Revenues from SA Government

Appropriations from consolidated account pursuant to the Appropriation Act 471 298 415 290 Appropriation transfers from contingency1 34 921 18 849

506 219 434 139

Payments to SA Government

Payments to consolidated account for sale of property (1 411) (8 247)

(1 411) (8 247)

Total revenues from/payments to SA Government 504 808 425 892

1 Includes an amount of $3.9 million ($4.9 million) for funding of TVSP payments. Refer to note 5.

CASH AND CASH EQUIVALENTSNOTE 19

2014 $’000

2013 $’000

Special deposit account with the Department of Treasury and Finance 41 557 62 709 Cash on hand 3 3

Total cash and cash equivalents 41 560 62 712

DEPOSITS WITH THE TREASURER

Comprises funds held in the Accrual Appropriation Excess Funds Account. The balances of these funds are not available for general use

(i.e. funds can only be used in accordance with the Treasurer's/Under Treasurer's approval).

INTEREST RATE RISK

Cash on hand is non-interest bearing. Deposits with the Treasurer earn interest at a floating interest rate, based on daily bank deposit rates.

The carrying amount of cash and cash equivalents represents fair value.

CORRECTION OF ERROR

The comparatives have been adjusted for a $0.135 million understatement for deposits relating to pre 1 November 2012 that were

previously recorded as TAFE SA.

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CORRECTION OF ERROR

The comparatives have been adjusted for a $0.282 million understatement for receivables transferred between DFEEST and TAFE SA.

MOVEMENT IN THE ALLOWANCE FOR DOUBTFUL DEBTS

The allowance for doubtful debts (allowance for impairment loss) is recognised when there is objective evidence (i.e. calculated on past

experience and current and expected changes in client credit rating) that a receivable is impaired.

An allowance for impairment loss has been recognised in 'other expenses' in the Statement of Comprehensive Income for specific debtors

and debtors assessed on a collective basis for which such evidence exists.

2014 $’000

2013 $’000

Carrying amount at the beginning of the period 9 2 786

Decrease in the allowance - (1 102)Amounts written off (26) (1 675)Increase(decrease) in allowance recognised in profit or loss 120 -

Carrying amount at the end of the period 103 9

INTEREST RATE RISK

Receivables are raised for all goods and services provided for which payment has not been received. Receivables are normally settled

within 30 days. Trade receivables and accrued revenues are non-interest bearing.

Other than as recognised in the allowance for doubtful debts, it is not anticipated that counterparties will fail to discharge their obligations.

The carrying amount of receivables approximates net fair value due to being receivable on demand. There is no concentration of credit risk.

a. Maturity analysis of receivables - Please refer to table 37.3 in Note 37.

b. Categorisation of financial instruments and risk exposure information - Please refer to note 37.


RECEIVABLESNOTE 20

2014 $’000

2013 $’000

Current

Fees and charges receivable 15 432 7 837 Less: allowance for doubtful debts (103) (9)Prepayments 895 613 GST recoverable from ATO 1 926 1 569 Other receivables 9 14

Total current receivables 18 159 10 024

Non-current

Workers' compensation receivable 41 50

Total non-current receivables 41 50

Total receivables 18 200 10 074

Receivables from SA Government entities

Receivables 13 378 7 173

Total receivables from SA Government entities 13 378 7 173



NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALENOTE 21

2014 $’000

2013 $’000

Land at fair value 30 459 6 719 Buildings and improvements at fair value 10 631 2 851

Total non-current assets classified as held for sale 41 090 9 570

VALUATION OF ASSETS HELD FOR SALE

As at 30 June 2013 and 30 June 2014, properties classified as held for sale were valued by Valcorp Australia Pty Ltd in accordance with the

principles outlined in the note 2(k).

2014 $’000

2013 $’000

Land and buildings

Land at fair value 125 404 154 530 Buildings and improvements at fair value 670 409 574 873 Accumulated depreciation (34 746) (19 106)Construction work in progress 13 449 89 956

774 516 800 253

Plant and equipment

Plant and equipment at cost (deemed fair value) 7 752 10 847 Accumulated depreciation (4 300) (6 991)

3 452 3 856

Heritage assets

Heritage assets at fair value 49 -

49 -

Total property, plant and equipment 817 063 830 206

Total accumulated depreciation at the end of the period (39 046) (26 097)

Total property, plant and equipment 778 017 804 109

PROPERTY, PLANT AND EQUIPMENTNOTE 22

VALUATION OF PROPERTY

The valuation of land and buildings was performed by Martin Burns independent valuer from Liquid Pacific as at 30 June 2012. The valuer

arrived at fair value on the basis of market values or at written down current cost which is considered to be equivalent to fair value.

PLANT AND EQUIPMENT

All items of plant and equipment had a fair value at the time of acquisition that was less than $1 million, or had an estimated useful life

that was less than three years, and have not been revalued in accordance with APFIII. The carrying value of these items are deemed

to approximate fair value. These assets are classified in Level 3 as there has been no subsequent adjustment to their value, except for

management assumptions about the asset's condition and remaining useful life.

P 100


PROPERTY, PLANT AND EQUIPMENT CONTINUEDNOTE 22

HERITAGE ASSETS

The valuation of heritage assets was performed in 2008 by Bonhams and Bruce, approved valuers of the Auctioneers & Valuers Association

of Australia. The assets are held at fair value based on the book value recorded by the transferor agency immediately prior to the transfer.

IMPAIRMENT

There were no indications of impairment of property, plant and equipment assets at 30 June 2014.

The department has no contractual commitments for the acquisition of intangibles assets.

IMPAIRMENT

There were no indications of impairment on intangible assets at 30 June 2014.

INTANGIBLESNOTE 23

2014 $’000

2013 $’000

Computer software 13 692 7 680 Accumulated amortisation (2 121) (716)Intangible work in progress 887 4 215

Total intangibles 12 458 11 179


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FAIR VALUE MEASUREMENTNOTE 24

2014 $’000

Level 2 $’000

Level 3 $’000

Recurring fair value measurements

Land (note 22) 125 404 125 404 - Buildings & improvements (note 22) 635 663 - 635 663 Plant & equipment (note 22) 3 452 - 3 452 Heritage assets (note 22) 49 - 49

Total recurring fair value measurements 764 568 125 404 639 164

Non-recurring fair value measurements

Land held for sale (note 21) 30 459 30 459 - Buildings & improvements held for sale (note 21) 10 631 10 631 -

Total non-recurring fair value measurements 41 090 41 090 -

Total 805 658 166 494 639 164

Description Valuation technique Unobservable inputs Range

Buildings Depreciated replacement cost Cost per unit area $85-$5 600 Effective life (years) 40-80

Plant & equipment Depreciated cost Effective life (years) 1-45Heritage Deemed fair value N/a n/a

FAIR VALUE HIERARCHY

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

categorises non-financial assets measured at fair value into hierarchy based on the level of inputs use in measurement.

Fair value measurements recognised in the Statement of Financial Position are categorised into the following levels at 30 June 2014.

The department had no valuations categorised into level 1.

Comparative information for non-financial assets has not been provided as permitted by the transitional provisions of the new standard.

There were no transfers of assets between level 1 and 2 fair value hierarchy levels in 2014. The department's policy is to recognise transfers

into and out of fair value hierarchy levels as at the end of the reporting period.

VALUATION TECHNIQUES AND INPUTS

Valuation techniques used to derive level 2 and 3 fair values are at note 21 and 22. There were no changes in valuation techniques during

2014. The following table is a reconciliation of fair value measurements using significant unobservable inputs (level 3).

QUANTITATIVE INFORMATION ABOUT FAIR VALUE MEASUREMENT USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)

P 104


FAIR VALUE MEASUREMENT CONTINUEDNOTE 24

Buildings $’000

Plant & equipment

$’000

Heritage $’000

Opening balance at 1 July 2013 555 767 3 856 -

Acquisitions - 645 - Donated assets - - 49 Transfer out of level 3 (7 880) - - Disposals (132) (179) - Transfers between asset classes 129 618 - -

Subtotal 677 373 4 322 49

Gains/(losses) for the period recognised in net result: #

Depreciation (19 630) (870) -

Subtotal (19 630) (870) -

Gains/(losses) for the period recognised in other comprehensive income:

Revaluation increment/(decrement) (22 080) - -

Subtotal (22 080) - -

Closing balance at 30 June 2014 635 663 3 452 49

# The gains/(losses) in operating result include changes in unrealised gains/

(losses) for assets still held at the end of the reporting period. The amounts

of these changes included in the various line items are as follows:

Depreciation (19 530) (678)

RECONCILIATION OF FAIR VALUE MEASUREMENTS - LEVEL 3

2014 $’000

2013 $’000

Current

Creditors 24 581 61 084 Accrued expenses 24 520 35 501 Employment on-costs 1 036 1 193 Paid Parental Leave Scheme 4 (12)Other 14 22

Total current payables 50 155 97 788

Non-current

Employment on-costs 896 527

Total non-current payables 896 527

Total payables 51 051 98 315

PAYABLESNOTE 25



2014 $’000

2013 $’000

Payables to SA Government entities

Creditors 13 647 54 814 Accrued expenses 15 388 28 615 Employment on-costs 1 879 1 643

Total payables to SA Government entities 30 914 85 072

PAYABLES CONTINUEDNOTE 25

CORRECTION OF ERROR

The comparatives have been adjusted for a $0.206 million understatement for payables between DFEEST and TAFE SA.

As a result of an actuarial assessment performed by the Department of Treasury and Finance, the percentage of the proportion of long

service leave taken has increased from the 2013 rate of 26 per cent to 40 per cent. This also incorporates a change in accounting estimate,

whereby the department has adopted the percentage for other government departments (40 per cent), rather than the educational

percentage (64 per cent). The average factor for the calculation of employer superannuation cost on-cost has increased from the 2013 rate

of 10.2 per cent to 10.3 per cent. These rates are used in the employment oncost calculation. The net financial effect of the changes in the

current financial year is an increase in the employment on-cost of $0.16 million.

INTEREST RATE AND CREDIT RISK

Creditors are raised for all amounts billed but unpaid and accruals are raised where goods and services are received but an invoice has not

yet been received. Sundry creditors are normally settled within 30 days. Employment on-costs are settled when the respective employee

benefit that they relate to is discharged. All payables are non-interest bearing. The carrying amount of payables represents fair value due

to the amounts being payable on demand.

a. Maturity analysis of payables - Please refer to table 37.3 in Note 37.

b. Categorisation of financial instruments and risk exposure information - Please refer to Note 37.

2014 $’000

2013 $’000

Current

Annual leave 3 245 4 018 Long service leave 929 1 610 Skills and experience retention leave 201 293 Accrued salaries and wages 1 094 1 101

Total current employee benefits 5 469 7 022

Non-current

Long service leave 9 651 12 919

Total non-current employee benefits 9 651 12 919

Total employee benefits 15 120 19 941

EMPLOYEE BENEFITS NOTE 26

P 106


EMPLOYEE BENEFITS CONTINUEDNOTE 26

AASB 119 contains the calculation methodology for long service leave liability. The actuarial assessment performed by the Department of

Treasury and Finance has provided a set level of liability for the measurement of long service leave.

AASB 119 requires the use of the yield on long term Commonwealth Government bonds as the discount rate in the measurement of the

long service leave liability. The yield on long term Commonwealth Government bonds has decreased from 2013 (3.50 per cent) to 2014

(3.25 per cent).

This decrease in the bond yield, which is used to discount future long service leave cash flows, results in an increase in the reported long

service leave liability. The net financial effect of the changes in the current financial year is an increase in the long service leave liability of

$0.247 million (however the long service liability has decreased overall due to transfer of staff to TAFE SA, and the number of TVSPs taken

during 2013-14). The impact on future periods is impracticable to estimate as the long service leave liability is calculated using a number of

assumptions – a key assumption is the long-term discount rate.

The actuarial assessment performed by the Department of Treasury and Finance left the salary inflation rate at 4 per cent. As a result, there

is no net financial effect resulting from changes in the salary inflation rate.

PROVISIONSNOTE 27

2014 $’000

2013 $’000

Current

Workers' compensation 208 240

208 240

Non-current

Workers' compensation 933 1 080

933 1 080

Total provisions 1 141 1 320

Carrying amount at 1 July 1 320 9 174

Reductions arising from payments/other sacrifice of future economic benefits (179) - Less provisions transferred to TAFE SA on restructure - (8 074)Additional provisions recognised - 220

Carrying amount at 30 June 1 141 1 320

A liability has been reported to reflect unsettled workers' compensation claims. The workers compensation provision is based on an

actuarial assessment performed by the Public Sector Workforce Relations Branch of the Department of the Premier and Cabinet.


OTHER LIABILITIESNOTE 28

2014 $’000

2013 $’000

Current

Other liabilities 658 495

Total other liabilities 658 495


CORRECTION OF ERROR

The comparatives have been adjusted for a $0.006 million overstatement for unearned revenue between DFEEST and TAFE SA.

AUSTRAINING INTERNATIONAL PTY LTD

Austraining International Pty Ltd, which has a reporting date of 30 June, is controlled by the Minister for Employment, Higher Education

and Skills. Its principal activity is to secure international contracts for work in VET.

The current investment value is an estimate of fair value and is based on unaudited financial statements as at 30 June 2014.

The revaluation surplus is used to record increments and decrements in the fair value of land and buildings to the extent that they offset

one another.

AustrainingInternational

Pty Ltd $’000

AustrainingInternational

Pty Ltd $’000

Contributed capital in subsidiary company 400 400 Share of retained profit 100% 100%

2014 $’000

2013 $’000

Retained profits attributable to subsidiary company

Balance at 1 July 5 940 6 289 Share of operating profit/(loss) after income tax 163 (349)

Total investments 6 103 5 940

2014 $’000

2013 $’000

Retained earnings 324 474 313 387 Revaluation surplus 328 011 354 313 Financial asset available-for-sale revaluation surplus 3 499 3 336 Contributed capital 173 474 112 477

Total equity 829 458 783 513

INVESTMENTS

EQUITY

NOTE 29

NOTE 30

P 108


2014 $’000

2013 $’000

Capital commitments

Capital expenditure contracted for at the reporting date but are not recognised as liabilities in

the financial statements are payable as follows:

Within one year 1 892 50 346 Later than one year and not later than five years 198 4 103 Later than five years - 2 280

Total capital commitments 2 090 56 729

2014 $’000

2013 $’000

Remuneration commitments

Commitments for the payment of salaries and other remuneration under fixed-term

employment contracts in existence at the reporting date but not recognised as liabilities are

payable as follows:

Within one year 2 942 2 797 Later than one year and not later than five years 6 098 2 221

Total remuneration commitments 9 040 5 018

UNRECOGNISED CONTRACTUAL COMMITMENTSNOTE 31

The department's capital commitments mainly relate to ICT contracts.

Amounts disclosed include commitments arising from executive contracts. The department does not offer remuneration contracts

greater than five years.

2014 $’000

2013 $’000

Other commitments

Within one year 4 605 3 233

Total other commitments 4 605 3 233

The department's other commitments relate to agreements for Productivity Places Program contracts, cleaning contracts,

and other procurement.

2014 $’000

2013 $’000

Operating leases commitments

Commitments in relation to operating leases contracted for at the reporting date but not

recognised as liabilities are payable as follows:

Within one year 6 506 5 500 Later than one year and not later than five years 10 668 14 756

Total operating lease commitments 17 174 20 256

The department's operating leases are for office accommodation, equipment and motor vehicles. Office accommodation is leased from

the Department for Planning, Transport and Infrastructure. The leases are non-cancellable with some leases having the right of renewal.

Rent is payable in arrears. Motor vehicles are leased from SA Financing Authority through their agent LeasePlan Australia.



CONTINGENT ASSETS AND LIABILITIESNOTE 32

ASSETS

The department is in the process of reviewing a potential breach of contractual obligation relating to bridging units undertaken by up to

15 Skills for All training providers.

The department will seek information from each training provider about the evidence they hold to justify the use of the bridging units so

that a position can be formed on whether overpayments have been made.

LIABILITIES

The Minister for Employment, Higher Education and Skills has provided a $3 million guarantee to Austraining International Pty Ltd which

has not been invoked as at 30 June 2014.

The Minister for Employment, Higher Education and Skills has entered an agreement to provide Le Cordon Bleu with a 10 year interest

free loan of $7 million conditional upon Le Cordon Bleu entering into a building contract for the development of Le Cordon Bleu's city

training facility.

TRANSFERRED FUNCTIONSNOTE 33

2014 TRANSFERRED OUT TO TAFE SA

In June 2013, the Chief Executives of DFEEST and TAFE SA authorised the transfer of approximately 100 staff from DFEEST to TAFE SA

pursuant to Section 9 of the Public Sector Act 2009. These transfers were in accordance with a decision taken by the TAFE SA Board to

establish autonomous corporate services within TAFE SA. The transfer became effective from 1 July 2013.

On transfer, DFEEST released the following liabilities:

2013 TRANSFERRED OUT TO TAFE SA

Under the Public Sector (Reorganisation of Public Sector Operations) Notice 2012, from 1 November 2012 TAFE SA was proclaimed as a

Statutory Corporation, and all assets and liabilities relating to TAFE SA within DFEEST were transferred out to the new entity.

On transfer, DFEEST released the following assets and liabilities:

Liabilities transferred by the department as a result of the administrative restructure were at the carrying amount recorded in the

Statement of Financial Position immediately prior to transfer. The liabilities have been charged directly to equity.

$’000

Payables 220 Employee benefits liability 3 488

Total liabilities 3 708

Total liabilities transferred (3 708)

$’000

Cash 60 109 Receivables 19 418 Inventories 905 Property, plant & equipment 16 593 Intangible assets 11 838

Total assets 108 863

P 110


TRANSFERRED FUNCTIONS CONTINUEDNOTE 33

$’000

Payables 11 424 Employee benefits liability 65 413 Provisions 8 074 Other liabilities 3 500

Total liabilities 88 411

Total net assets transferred 20 452

Net assets transferred by the department as a result of the administrative restructure were at the carrying amount recorded in the

Statement of Financial Position immediately prior to transfer. The net assets have been charged directly to equity.

AFTER BALANCE DAY EVENTSNOTE 34

As proclaimed on 26 June 2014 and in accordance with Section 26 of the Public Sector Act 2009, from July 1 2014, the title of the

Department for Manufacturing, Innovation, Trade, Resources and Energy is altered to the Department of State Development (DSD).

In addition the Public Sector (Reorganisation of Public Sector Operations) Notice 2013 and 2014 (dated 15 June 2014) proclaimed that

effective from 1 July 2014 DFEEST, Arts SA, Aboriginal Affairs and Reconciliation division, Office of the Economic Development Board,

Invest in SA and Health Industries SA will be transferred to DSD.

In September 2014, the Chief Executive of DSD and the Acting Chief Executive of TAFE SA authorised the transfer of approximately 80 staff

from DSD to TAFE SA pursuant to Section 9 of the Public Sector Act 2009. These transfers were in accordance with a decision taken by the

TAFE SA Board to establish autonomous ICT services within TAFE SA. The financial effect of this change has not been reflected in the

2013-14 financial statements due to the transfer becoming effective from 8 September 2014.

REMUNERATION OF BOARD AND COMMITTEE MEMBERSNOTE 35

Members that were entitled to receive remuneration during the 2013-14 financial year were:

Audit and Risk Management Committee

C Dunsford Chair

W Einarson ^

Premier's Science & Industry Council

L Cobiac ^

D Evans ^ from January 2014

I Gould

M Heard

A Lopez

T Monro

D Mutton

R Popelka-Filcoff

C Priest

L Read

K Reynolds resigned September 2013

P Sandercock

K Scott



REMUNERATION OF BOARD AND COMMITTEE MEMBERS CONTINUEDNOTE 35

Premier's Science & Industry Council continued

P Tharenou

G Todd ^ resigned September 2013

G Young ^ from January 2014

Training and Skills Commission

J Buchanan

I Curry Deputy to J Newlyn

P Dowd

A Downs ^ Deputy to S Myatt

J Giles ^ resigned September 2013

C Haythorpe from December 2013

K Heneker

M Keating

N McBride from December 2013

S Myatt

J Newlyn from November 2013

A Nieuwenhuis

L Palmer

A Smith Chair

Training and Skills Commission Access and Participation Reference Group

J Giles resigned September 2013

K Heneker from September 2013 - chair

G McFadyen

P Wright

Training and Skills Commission Quality Reference Group

A Coker

S Forrest

D Frith resigned September 2013

S Holden

A Nieuwenhuis Chair

E Sckrabei ^ from October 2013

Training and Skills Development Act 2008 Assessor Panel

J Adler ^

R Buckler ^

A Cartledge ^

I Curry ^

S Frazer ^

D Jeffries ^

^ Indicates a member who is entitled to receive remuneration but did not receive remuneration during 2013-14.

P 112


REMUNERATION OF BOARD AND COMMITTEE MEMBERS CONTINUEDNOTE 35

The number of members whose remuneration from the entity falls within the following bands is:

2014 No. of members

2013 No. of members

$1 - $9 999 22 26 $10 000 - $19 999 1 6 $20 000 - $29 999 - 3 $30 000 - $39 999 10 1 $40 000 - $49 999 1 2 $60 000 - $69 999 - 1

34 39

Remuneration of board members reflects all costs of performing board/committee member duties including sitting fees, superannuation

contributions, fringe benefits tax and any other salary sacrifice arrangements. The total remuneration received or receivable by members

was $0.4 million ($0.3 million).

Amounts paid to a superannuation plan for board/committee members was $19 337 ($20 579).

Unless otherwise disclosed, transactions between members are on conditions no more favourable than those that it is reasonable to

expect the entity would have adopted if dealing with the related party at arm's length in the same circumstances.

2014 $’000

2013 $’000

Reconciliation of cash and cash equivalents - cash at year end as per:

Cash and cash equivalents disclosed in the Statement of Financial Position 41 560 62 712

Balance as per the cash flow statement 41 560 62 712

CASH FLOW RECONCILIATIONNOTE 36

2014 $’000

2013 $’000

Reconciliation of net cash provided by operating activities to net cost of providing services

Net cash provided by operating activities (31 597) 9 854 Depreciation and amortisation (21 905) (22 442)Gain/loss on sale of assets (156) (12)Transfer out for administrative restructure (3 708) (68 088)Decrease/(increase) in employee benefits 4 821 67 979 (Decrease)/increase in receivables 8 126 (14 279)(Decrease)/increase in inventories - (898)Decrease/(increase) in payables 51 782 (34 540)(Increase)/decrease in other liabilities (163) 3 633 Decrease in provisions 179 7 854 Revenues from government (506 219) (434 139)Payments to government 1 411 8 247

Net cost of providing services (497 429) (476 831)



FINANCIAL INSTRUMENTSNOTE 37

Details of significant accounting policies and methods adopted including the criteria for recognition, the basis of measurement, and the

basis on which income and expenses are recognised with respect to each class of financial asset, financial liability and equity instrument

are disclosed in Note 2.

Table 37.1 Categorisation of financial instruments

Category of financial assets and financial liabilities

Statement of financial position line item

Note No.

2014 carrying amount

$'000

2013 carrying amount

$'000

Financial assets

Cash and cash equivalents Cash and cash equivalents 19 41 560 62 712 Receivables Receivables (1) (2) 20 15 353 7 852

Financial assets Investments 29 6 103 5 940

Financial liabilities

Financial liabilities at cost Payables 25 48 890 96 440

Total net financial assets at cost 14 126 (19 936)

(1) Receivables and payable amounts disclosed here exclude amounts relating to statutory receivables and payables. In government,

certain rights to receive or pay cash may not be contractual and therefore in these situations, the requirements will not apply. Where

rights and obligations have their source legislation such as levy receivables/payables, tax equivalents, commonwealth tax etc they

would be excluded from the disclosure. The standard defines contract as enforceable by law.

(2) Receivables amount disclosed here excludes prepayments. Prepayments are presented in Note 20 as trade and other receivables in

accordance with paragraph 78(b) of AASB 101. However, prepayments are not financial assets as defined in AASB 132 as the future

economic benefit of these assets is the receipt of goods and services rather than the right to receive cash or another financial asset.

DFEEST does not recognise financial assets or financial liabilities at fair value with the exception of the investment in Austraining which is

disclosed at fair value derived from data not observable in a market (refer Note 29).

CREDIT RISK

Credit risk arises when there is the possibility of the department’s debtors defaulting on their contractual obligations resulting in financial

loss to the department. The department measures credit risk on a fair value basis and monitors risk on a regular basis.

The carrying amount of financial assets as detailed in table 37.1 represents the department's maximum exposure to credit risk.

The department has minimal concentration of credit risk. The department has policies and procedures in place to ensure that transactions

occur with customers with appropriate credit history. The department does not engage in high risk hedging for its financial assets.

Allowances for impairment of financial assets is calculated on past experience and current and expected changes in client credit

rating. Currently the department does not hold any collateral as security to any of its financial assets. Other than receivables, there is no

evidence to indicate that the financial assets are impaired. Refer to Note 20 for information on the allowance for impairment in relation

to receivables.

P 114


FINANCIAL INSTRUMENTS CONTINUEDNOTE 37

The following table discloses the ageing of financial assets, past due, including impaired assets past due.

Table 37.2 Ageing analysis of financial assets

Past due by

Overdue for < 30 days $’000

Overdue for 30-60 days $’000

Overdue for > 60 days $’000

Total$’000

2014 Not impaired


2013 Not impaired


Table 37.3: Maturity analysis of financial assets and liabilities

Contractual maturities

Carrying amount($’000)

< 1 year($’000)

1-5 years($’000)

> 5 years($’000)

2014 Financial assets

Cash & cash equivalent 41 560 41 560 - - Receivables 15 353 15 330 - 23 Other financial assets 6 103 - - 6 103

Total financial assets 63 016 56 890 - 6 126


Payables 48 890 48 890 - -

Total financial liabilities 48 890 48 890 - -

2013 Financial assets

Cash & cash equivalent 62 712 62 712 - - Receivables 7 852 7 829 - 23 Other financial assets 5 940 - - 5 940

Total financial assets 76 504 70 541 - 5 963


Payables 96 440 96 440 - -

Total financial liabilities 96 440 96 440 - -

LIQUIDITY RISK

Liquidity risk arises where the department is unable to meet its financial obligations as they fall due. The department is funded principally

from appropriations from the SA Government. The department works with the department of Treasury and Finance to determine the

cashflows associated with its government approved program of work and to ensure funding is provided through SA Government

budgetary processes to meet the expected cashflows.

The following table discloses the maturity analysis of financial assets and financial liabilities.


FINANCIAL INSTRUMENTS CONTINUEDNOTE 37

The department settles undisputed accounts within 30 days from the date of the invoice or date the invoice is first received. In the event

of a dispute, payment is made 30 days from resolution.

The department's exposure to liquidity risk is insignificant based on past experience and current assessment of risk.

The carrying amount of financial liabilities recorded in Table 37.1 represents the department's maximum exposure to financial liabilities.

MINISTER'S SALARY AND ALLOWANCES

Minister's salary and allowances represents the amount pursuant to Parliamentary Remuneration Act 1990.

Minister's salary and allowances

2014 $’000

2013 $’000

Administered expenses

Employee benefits 286 273

Total administered expenses 286 273

Administered income

Revenues from SA Government 286 273

Total administered income 286 273

Total employee benefits - -

ADMINISTERED ITEMSNOTE 38


P 116



LIST OF FIGURES / LIST OF TABLES

LIST OF TABLES

Table 1. Progress against SASP targets P 9

Table 2. Website service activity, 1 July 2013 to 31 May 2014 P 14

Table 3. Enrolment trends by sector, 2009 to 2013 (full year) P 22

Table 4. Enrolment trends by country, 2012 to 2013 (full year) P 23

Table 5. Account payment performance P 36

Table 6. Consultants P 37

Table 7. Details of consultancy expenditure more than $10 000 P 37

Table 8. Summary of financial information P 38

LIST OF FIGURES

Figure 1. South Australian VET students by provider type, 2013 P 12

Figure 2. Skills for All, changes in course enrolments, 2013 P 13

Figure 3. Distribution of projected industry demand for VET qualifications and Skills for All enrolments in 2013 across

TaSC occupation groups P 13

Figure 4. VET system efficiency P 14

Figure 5. Impact of efficiency improvement on VET student numbers P 15

Figure 6. Domestic enrolments for South Australian universities, 2008 to 2012 P 20

Figure 7. Overview of revenue sources for 2013-14 P 38

Figure 8. Overview of operating expenses for 2013-14 P 39

Figure 9. VET students in South Australia by cohort, percentage change between 2012 and 2013 P 51

Figure 10. South Australian VET students in 2013 by provider type P 51

Figure 11. South Australian VET students in 2013 by fund source P 52

Figure 12. VET students in South Australia, percentage change, by qualification level, between 2012 and 2013 P 52

Figure 13. South Australian VET students in 2013 by qualification levels P 53

Figure 14. South Australian VET students in 2013 by age group P 54

Figure 15. South Australian FYTE in 2013 by provider type P 56

Figure 16. VET course enrolments in South Australia in 2013 by provider type P 58

Figure 17. VET course enrolments in South Australia, percentage change between 2012 and 2013 P 59

Figure 18. South Australian VET course enrolments in 2013, by qualification levels P 59

Figure 19. VET course completions in South Australia, percentage change between 2011 and 2014 P 60

Figure 20. South Australia VET course completions in 2012, by qualification levels P 61

P 118

LIST OF FIGURES / LIST OF TABLES

LIST OF TABLES CONTINUED

Table 9. Overview of operating expenses 2013-14 P 39

Table 10. Performance against annual energy usage targets P 41

Table 11. Total number of employees P 42

Table 12. Employee number by gender P 42

Table 13. Number of employees who were recruited to and separated from the department P 42

Table 14. Age distribution of employees by headcount and gender P 43

Table 15. Number of employees by salary bracket P 43

Table 16. Status of employees in current position P 43

Table 17. Status of FTE employees in current position P 43

Table 18. Number of executives by gender and classification P 44

Table 19. Aboriginal and/or Torres Strait Islander employees P 44

Table 20. Cultural and linguistic diversity P 44

Table 21. Number of employees identified as having disability P 44

Table 22. Average leave days P 44

Table 23. Voluntary flexible working arrangements P 45

Table 24. Documented review of individual performance management P 45

Table 25. Graduate numbers by gender P 45

Table 26. Employment opportunities by gender P 46

Table 27. Training and development expenditure P 47

Table 28. Work health and safety (WHS) comparative data P 47

Table 29. VET students by provider type, South Australia and Australia, 2012 and 2013 P 50

Table 30. VET students by fund source, South Australia and Australia, 2012 and 2013 P 52

Table 31. VET students by age, South Australia and Australia, 2012 and 2013 P 53

Table 32. VET students by remoteness region, South Australia and Australia, 2012 and 2013 P 54

Table 33. VET students by fields of education, South Australia and Australia, 2012 and 2013 P 55

Table 34. VET FYTE by provider type, South Australia and Australia, 2012 and 2013 P 56

Table 35. VET FYTE by fund source, South Australia and Australia, 2012 and 2013 P 56

Table 36. VET hours by provider type, South Australia and Australia, 2012 and 2013 (‘000 000) P 57

Table 37. VET hours by fund source, South Australia and Australia, 2012 and 2013 (‘000 000) P 57

Table 38. VET course enrolments by provider type, South Australia and Australia, 2013 and 2013 P 58

Table 39. VET subject enrolments by provider type, South Australia and Australia, 2013 and 2013 P 59

Table 40. Course completions by provider type, South Australia and Australia, 2011 and 2012 P 60

Table 41. Course completions by provider type, South Australia and Australia, 2012 and 2013 P 61


P 120


Published September 2014.

No responsibility for any loss or damage caused by reliance on any of the information or advice provided by or on behalf of the State of South Australia, or for any loss or damage arising from acts or omissions made, is accepted by the State of South Australia, their officers, servants or agents. Produced by the Department of State Development © September 2014. Content correct at time of printing.


DEPARTMENT OF STATE DEVELOPMENT

Level 4, 11 Waymouth Street ADELAIDE, SA 5000

GPO Box 320 ADELAIDE, SA 5001

Telephone: +61 8 8226 3821 Facsimile: +61 8 8226 9533

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