ANNUAL REPORT POLYTECHNIC - parliament.wa.gov.au

ANNUAL REPORT2010

POLYTECHNICWESTThe Polytechnic of Western Australia

POLYTECHNIC\NEST

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Training Centrewww.polytehnic.wa.edu.ou

Your future. Our business.

The report has been prepared in accordance with theprovisions of the Financial Management Act, 2006.

Further enquiries should be directed to:

Polytechnic WestMarketing DepartmentPO Box 1336MIDLAND WA 6936

Telephone 9442 8373Facsimile 9267 7118Email [email protected]

CONTENT'

STATEMENT FROM THE CHAIR OF THE GOVERNING COUNCIL 4

MANAGING DIRECTOR'S REPORT 5

STATEMENT OF COMPLIANCE 6

EXECUTIVE SUMMARY 7

ORGANISATIONAL STRUCTURE 8

VISION, MISSION AND VALUES 9

CAMPUS LOCATIONS 10

COMPLIANCE WITH WRITTEN LAWS 11

PERFORMANCE MANAGEMENT FRAMEWORK 12

AGENCY PERFORMANCE 13

Key Priority Outstanding Student Experience 14

Key Priority Industry Relationships 16

Key Priority Diversified Revenue Sources 18

Key Priority Social Responsibility 20

SIGNIFICANT ISSUES IMPACTING THE AGENCY 23

STUDENT AND POLYTECHNIC AWARD WINNERS 24

DISCLOSURES AND LEGAL COMPLIANCE 26

ADDITIONAL KEY PERFORMANCE INDICATOR INFORMATION 27

KPI 1 Student Satisfaction 27

KPI 2 Graduate Achievement 28

KPI 3 Graduate Destination 28

KPI 4 Achievement of non-profile delivery 29

KPI 5 Achievement of profile delivery (by Industry Group) 29

KPI 6 Delivery Cost per Student Curriculum Hour (SCH) 31

OTHER LEGAL REQUIREMENTS 33

DISABILITY ACCESS AND INCLUSION PLAN 35

FINANCIAL STATEMENTS 37

3

STATEMENT FROM THE CHAIR OF THE GOVERNING COUNCIL

On behalf of the GoverningCouncil, I am pleased topresent Polytechnic West's(PWA) Annual Report for2010, highlighting ourstrategic priorities and keyachievements for the year.

The Governing Councilremains committed to PWA'slong term strategy of growthand diversification that will

ensure the organisation has the required resilienceto meet the challenges ahead linking investment ineducation and economic growth.

In 2010, the Department of Training and WorkforceDevelopment released their new Strategic Plan whichshows a marked move towards increased industrycontrol over the level and direction of training dollars.While PWA will continue our strong partnerships withindustry in this regard, I am also cognisant of the rolethat PWA has to play in offering support programs to thecommunity and achieving the aspirations of all WesternAustralians.

2010 will be remembered as a year of significanttransformation for PWA. Following our re-positioningas a Polytechnic in 2009, the organisation hascontinued to claim its place as the leading dual sectorprovider of both vocational education and trainingprograms and applied higher education AssociateDegree programs. In addition, to new governancearrangements set by the State, the move into theHigher Education arena has meant that additionalacademic governance is required to ensure thecontinuation of our higher education provider statusand the quality of our products to students. As such, inlate 2010 the Governing Council endorsed the creationof a new Directorate of Higher Education to overseethis process and the establishment of a specialist, highquality Academic Board.

PWA has also identified a strategic need to increasethe level and frequency of teaching methodologies thatincorporate e-Learning strategies. For many studentsthis will be a beneficial point of difference. Trainingorganisations that provide the flexibility people arenow accustomed to in their secondary education,and in the workplace, have new expectations of theirlearning experience. In 2010, PWA invested heavily ine-Learning technology and in providing lecturing staff

with the skills that this new and emerging teachingenvironment requires. In 2011 we will again makethese opportunities, and more, available to staff. I

implore all staff to take advantage of the trainingopportunities available, which ultimately will result in abetter quality of learning, either in the classroom, thehome or in the workplace for our students.

Retention of staff, particularly educators and trainers,will again be a major challenge for this organisation.This staff cohort is in danger of not being replacedat the required rate, particularly as the WesternAustralian economy looks set to experience anotherboom with many major resource projects comingon line in 2011. The executive team at PWA hasworked tirelessly to create an organisation that isflexible and able to adapt to rapid change, however,the ability to retain our highly skilled staff and attractindustry expertise into new teaching roles in the faceof strengthening labour market will remain a focus forPWA.

I would like to take this opportunity to thank each andevery staff member for their individual and collectivecontributions to our past year of success and thelearning experience of our students.

In closing, I would like to warmly welcome our newGoverning Council members Angela Edwards, BlakeMcCarthy and Majella Franzmann and farewelldeparting member Karl Howard, who has contributedgreatly throughout his term. I extend my warmestthanks to all of the members of the Governing Counciland our executive management team at PWA for theirdedication and commitment to achieve the fantasticresults outlined in this report.

2011 is sure to be another challenging yet excitingyear for PWA. The organisation will play a leading rolein the State's workforce development strategy and welook forward to working with our partners to deliver theskills they need to power the State's economic growth.

Keith VuletaChairmanPolytechnic West Governing Council

2010 marked an excitingperiod of transition forPolytechnic West (PWA). Aperiod when we continued ourtransition from a recognisedleading provider of highquality vocational educationand training (VET) to a dualsector provider extendingour pathways for studentsin applied VET to highereducation qualifications.

Our State training delivery target was again achievedin 2010, an incredible outcome in light of the dynamiceconomic and workforce environment we operatein. This reflects our strong position in the market asa training provider of choice. We also exceeded ourhigher education enrolment targets and continued tobroaden our scope of offerings in this area.

Our provision of training to international students hasagain remained strong despite a range of uncertaintiesbeyond the sector's control, and our training to newmigrants through the Adult Migrant English Programcontinues to go from strength to strength.

We have improved our facilities across the five majorcampuses, which has included the refurbishment ofthe automotive training centre at Carlisle campus to astate of the art 'green' facility. In addition to providingtraining resources for the new electric and hybridvehicle technology, the campus now hosts a 100kWcapacity photovoltaic installation that will improveenergy efficiency and reduce our energy costs.

Our students continue to gain honours with noteworthysuccesses both at our internal awards and furtherafield. Narrogin apprentice Lucas Kickett, whocompleted his Certificate III in Engineering Fabrication,was awarded PWA's Geof Gale Medal for MostOutstanding Student of the Year and Apprentice of theYear Award. Lucas was also a finalist in the Aboriginaland Torres Strait Islander category of the WA TrainingAwards and won the National NAIDOC Apprenticeof the Year Award. Jake Hall was successful at theNational Worldskills Competition in Brisbane in Floorand Wall Tiling and as a result will represent Australiaat the International Worldskills Competition in Londonin 2011.

The development of staff through our professionaldevelopment, lecturer induction and succession andleadership programs has continued to be a focus withsignificant results. Furthermore, our staff continueto achieve and be recognised as world class, withlecturer, Anne Ottaway, being successful in her secondEndeavour Scholarship to China where she workedon programs helping rural workers to transition intoemployment in the cities.

I would like to sincerely thank Keith Vuleta, Chair,Doug Hall, Deputy Chair and our Governing Councilmembers for their contribution to the good governanceand strategic direction of Polytechnic West.

I also want to thank our industry and communitypartners, who without their support and valuable inputwe would not be able to deliver the high quality oftraining we are recognised for. Finally, I would liketo thank all Polytechnic West staff for their passion,professionalism and dedication throughout 2010, andfor achieving the many milestones outlined in thisannual report.

Wayne CollyerManaging DirectorPolytechnic West

5

GOVERNMENT OFWESTERN AUSTRALIA

16 February 2011

The Hon Peter CollierMinster for Training11th Floor, Dumas House2 Havelock StreetWEST PERTH WA 6005

Dear Minister

POLYTECHNICWESTThe Poyecnnic of Western Australia

Armada le, Balga, Bentley, Carlisle,

Jandakot, Midland, Thorn lie

PO Box 1336 Midland WA 6936

Course information m 9267 7500General enquiries us 9267 7777

polytechnic.wa.edu.au

In accordance with section 54 of the Vocational Education and Training Act (1996) and Schedule 1 ofthe Financial Management Act 2006 (s61), we hereby submit for your information and presentation toparliament, the Annual Report of Polytechnic West for the year ending 31 December 2010.

In the administration of Polytechnic West (PWA), we have complied with the Public Sector Standardsin Human Resource Management, the Western Australia Public Sector Code of Ethics and our Codeof Conduct. We have put in place procedures designed to ensure such compliance and conductedappropriate internal assessments to satisfy ourselves that this statement is correct.

At the date of signing this document, we believe we have complied with all relevant written laws of theParliament of Western Australia that have bearing on the operations of PWA and have no knowledgeor information of any circumstances that would render this statement misleading or inaccurate.

Yours sincerely

/(\Keith Vuleta ollyerChair of the Governing Council Managing DirectorPolytechnic West Polytechnic West

In 2010, Polytechnic West (PWA) successfully delivereda record 7,203,919 million student curriculum hours(SCH) exceeding the profile delivery target for the sixthyear in succession. The revenue from commercialactivities increased by 18.6% to $26 million.

A major highlight during the year was the upgradeof facilities across PWA's key campuses includingthe automotive 'green' training facility at the Carlislecampus and the establishment of the AeroSpaceTraining Centre, equipped with its own Boeing 737aircraft, at Jandakot Airport.

A continuing focus on developing PWA's capacity forflexible training delivery saw a significant increase inthe number of students who participated in e-Learningprograms and undertook recognition of prior learning(RPL). At the same time, the expansion of theTransforming Trade Training strategy with over 1,950enrolled apprentices under this strategy has positionedPWA to make a significant contribution to improvingtrade training relevance and responsiveness to WAindustry.

New industry partnerships were established andexisting ones strengthened, both domestically andinternationally. These included partnering with the:

Royal Australian Navy to deliver training inrefrigeration and air conditioning equipmentservice and repair.

Burswood and Accor Hotels Group to provide jobsready skills to young Indigenous participants.

Clontarf College to provide training and supportto Year 12 Clontarf graduates in their transition toemployment based training.

Chevron Australia to deliver animal handlingtraining to staff and contractors working on BarrowIsland as part of the Gorgon Project.

The development and implementation of a rangeof services and programs aimed at social andeducational inclusion has continued to strengthenPolytechnic West's role as an integral part of our localcommunity. These have included the:

Children's Services Team working alongside theGosnells Early Years Action Group on the Bondingwith Books project.

Horticulture lecturing staff and students supportinga range of community based projects includingthe Hills Community Support Group, RSPCA andUndercliffe Nursing Home.

Staff development initiatives during the year weretargeted to ensure that staff are provided with theopportunity to enhance their skills and knowledge tothe benefit of students, industry and the community.

The succession and leadership program for nonteaching staff continued in 2010. Participants wereprovided with the opportunity to attend sessions ona wide range of topics including: applied research,identifying and developing commercial businessopportunities, client service delivery, strategic andoperational planning, marketing and senior levelwriting skills.

The programs and services discussed above, togetherwith the many other achievements outlined in thisreport, ensure that PWA is well positioned to continueto meet the challenges that lie ahead in deliveringquality vocational education and training to industry,individuals and the broader community.

7

ORGANISATIONAL STRUCTURE

Establishment of the Polytechnic

Polytechnic West was established under Section 35of the Vocational Education and Training Act, 1996.PWA is a body corporate with a Governing Councilestablished as the accountable authority.

Functions of the Governing Council

The Governing Council has legislative authority toperform the following functions:

Prepare a PWA training profile for approval by theMinister.Develop and implement strategic andmanagement plans for PWA.Ensure that courses, programs and services areresponsive to and meet the needs of students,industry and the community.Ensure that PWA meets its commitments underits Delivery and Performance Agreement and anyother contractual arrangements.

Minister for Training and Workforce Development

The Honourable Peter Collier MLC, Minister forTraining and Workforce Development, is the Ministerresponsible for training and workforce development.

Organisational Structure

PWA's organisational structure consists of three majorprofessional teams:

Education and Training DeliveryEducation and Training Delivery provides a range ofquality teaching and learning programs and servicesto meet the needs of students, industry and thecommunity.

Organisational ServicesOrganisational Services provide a range of services tosupport the needs of lecturers and students across theorganisation.

Resources and Corporate ServicesResources and Corporate Services provide thebusiness systems and resources that support theorganisation's overall business operations andgovernance requirements.

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VISION, MISSION AND VALUES

Vision

Your future. Our business.Inspiring individuals and business to create their future today.

Mission

To provide innovative and flexible education and training services thatpromote the acquisition of skills and knowledge to enhance the careeropportunities and community engagement of individuals and support thedevelopment and productivity of business.

Values

Responsiveness We are responsive to our clients, providing servicesthat meet their needs in a friendly and courteous manner.

Excellence We support the pursuit of excellence, creativity andthe sharing of knowledge by our staff to nurture a culture of sustainedimprovement.

Sustainability We work to protect the environment,promote social advancement and contribute to the economic prosperity ofWestern Australia.

Integrity We conduct our business in an ethical, open and honestmanner that treats our clients and colleagues with respect andunderstanding.

Diversity We recognise and buildon the strength and understandingthat comes from working with, and for,people from different backgrounds,circumstances and life experiences.

Our Beliefs

Great lecturers are essential foran outstanding learner experience.

Development of skills is best achieved througha holistic, task-oriented approach to learning.

Employability is maximised by learningthat occurs in a real, or closely simulated

workplace environmentreflecting industry standards.

Meaningful close relationshipswith industry ensures

training is relevant.

9

CAMPUS LOCATIONS

Polytechnic West has campuses in Armada le,Balga, Bentley, Carlisle, the Perth CBD, Midlandand Thorn lie. The organisation also has a specialistAeroSpace Training Centre at Jandakot Airport and anEquine Training Centre, in Armada le.

Polytechnic West employs over 2,000 full-time, part-time and casual staff of which approximately two-thirds are involved in training delivery and supportfor learning programs. In 2010, PWA enrolledapproximately 32,000 full-time, part-time, overseasand short course students.

Balga Campus

cc CBD Campus

Carlisle Campus

COBentley Campus

Midland Campus

ceThornlie Campus

Jandakot Campus

Equine Centre

Armadale Campus

In the performance of its function, Polytechnic Westexercised controls that provided reasonable assurancethat it complied with the following relevant written laws:

Aboriginal and Torres Strait Islander CommissionAmmendment Act, 2005.Anti-Corruption Commission Act, 1988.Archive Act, 1983.Building and Construction Industry Training Fundand Levy Collection Act 1990.Copyright Act, 1968.Commercial Tenancy (Retail Shops) AgreementsAct, 1985.Corruption and Crime Commission Act, 2003;Criminal Code Act, 1995.Disability Discrimination Act, 1992.Disability Services Act, 1993.Education Services for Overseas Students(Registration Charges) Act, 1997.Education Act, 1928.Electoral Act, 1907.Employment Dispute Resolution Act, 2008.Employment, Education and Training Act, 1988.Equal Opportunity Act, 1987.Evidence Act, 1995.Fair Work Act, 2009.Financial Management and Accountability Act,1997.Freedom of Information Act, 1982.Government Employees Superannuation Act,1987.Immigration (Education) Act, 1971.Immigration (Education) Charge Act, 1992.Income Tax Assessment Act, 1997.Industrial Relations and Other LegislationAmendment Act, 1995.Limitation Act, 2005.Library Board of Western Australia Act, 1951.Minimum Conditions of Employment Act, 1993.Occupational Safety and Health Act, 1984.

Privacy Act, 1988.Public and Bank Holidays Act, 1972.Public Interest Disclosure Act, 2003.Public Sector Management Act, 1994.Public Sector Code of Ethics.SPAM Act, 2003.State Records Act, 2000.State Supply Commission Act, 1991.Trade Practices Act, 1974.Vocational Education and Training Act, 1996.(Colleges Amalgamation Order 2002).Workers Compensation and Injury ManagementAct, 1981.Working with Children (Criminal Record Checking)Act, 2004.

Outcome Based Management Framework

STATE GOVERNMENT GOALSOutcomes Based Service Delivery

Greater focus on achieving results in key service delivery areas for the benefit of all Western Australians.

Training WA: Planning for the future 2009 2018

A skilledworkforce

A contemporaryapprenticeship

system

Individualparticipation

in training

Support forregional

communities

A vibrantand diverse

training market

Training systemcapability

and capacity

Polytechnic West (PWA) Strategic Plan 2010 2012Key Priority Areas

Outstanding StudentExperience

OutcomesExcellent studentservices areprovided.Studentsachievement isenhanced throughthe provision ofquality, flexibletraining deliveryand assessmentmethods.Training facilities,equipment andresources supporta quality learningenvironment.Lecturing stafffacilitate anengaging learningexperience.

IndustryRelationships

OutcomesNew businessopportunities areidentified as a resultof the developmentand maintenanceof strategic industryand providerpartnerships.Training productsand services are ofa high quality andmeet industry needs.Industry recognisesPolytechnic West asa leading provider oftraining services.

Diversified RevenueSources

OutcomesNew sustainableand profitablesources of revenueensure the ongoingviability and growthof PWA.

SocialResponsibility

OutcomesPWA's carbonfootprint is reduced.Training programsincorporatesustainable andenvironmentallyfriendly technologiesand practices.Indigenousenrolments andachievements areincreased.Members of prioritytarget groups aresupported to accessfurther training andemployment.ACE programsprovide a pathwayto further trainingand employmentopportunities.

PERFORMANCE MANAGEMENT FRAMEWORK

Delivery Performance Agreement

PWA's 2010 Delivery Performance Agreement (DPA)with the Department of Training and WorkforceDevelopment identified a range of priority trainingdelivery targets which included:

Employment based training.

Institutional-based training in priority qualifications.

General institutional training.

The 2010 DPA delivery target set for PWA was6,813,602 student curriculum hours (SCH). PWAdelivered 7,203,919 SCH for the year ending 31December 2010.

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Employment-based training delivery was 2,247,775SCH which was below the planned delivery target of2,460,238. However, this was offset with increaseddelivery in institutional based training in priorityqualifications with 2,758,795 SCH delivered comparedto a planned target of 2,391,533. General Institutionaldelivery was 2,197,349 SCH compared to a planneddelivery target of 1,961,831.

InstitutionalSkills Shortage

GeneralInstitutional

Planned Delivery

Actual Delivery

2010 Planned Delivery Actual Delivery

Apprentices and Trainees 2,460,238 2,247,775

Institutional Skills Shortage 2,391,533 2,758,795

General Institutional 1,961,831 2,197,349

13

KEY PRIORITY OUTSTANDINGSTUDENT EXPERIENCE

PWA focuses on providing students with a flexible,supportive and responsive learning environment.During 2010, PWA delivered a range of programs andservices to achieve this key priority.

Quality Flexible Delivery

e-Learning

PWA's e-Learning Continuum Strategy which seeksto provide students with 24 hour online access tocourse, learning and assessment information, and thecapability for lecturers and fellow students to interactthrough computers and / or other mobile devices, wasfurther developed in 2010.

Professional development for staff in new technologiesresulted in the integration of digital learning andassessment resource systems such as 'Clickview' and`CDX Automotive' into a range of training programs. Asa result of the strategy, e-Learning delivery increasedfrom 21,700 SCH in 2009 to 84,146 SCH in 2010.

Recognition of Prior Learning

Recognition of Prior Learning (RPL) allows studentswith existing skills and knowledge to receive creditthrough an upfront assessment process. During 2010,there was an increase in RPL enrolments of over 33%.A significant number of RPL applications were receivedfrom construction trades in the northern regions of theState; skilled (subclass 457) visa holders; culturallyand linguistically diverse clients; and secondary schoolteachers. Development has commenced for customisedassessment models for each of these client groupsalong with an electronic RPL application and referralprocess which will be ready for implementation in 2011.

Higher Education

PWA is the only publicly funded training providerin Western Australia delivering Associate Degreecourses. These sub-degree qualifications, accreditedagainst higher education requirements, providealternative pathways for students wishing to progressto a university Bachelor Degree by capitalising on theirVET qualifications.

136 students enrolled in one of the following AssociateDegree programs in 2010:

Hospitality ManagementBusinessAviation (Aeronautics)Aviation (Management)Aviation (Maintenance).

In Semester 2, 2010, a new Associate Degree inNetwork Technology was developed and will beintroduced in Semester 1, 2011.

Student ServicesVocational Education and Training for School(VETfS) program

PWA is committed to developing and enhancingopportunities for school students to engage in VETand provide alternative pathways to university,increasing the number of courses offered under theVETfS program at Certificate III level and above.Programs in 2010 included:

Certificate IV in Information Technology, with 18students successfully completing the two-yearprogram.

Certificate IV in Business, with 34 studentscurrently enrolled in this 18-month course, whichwill be completed in 2011.

Certificate III in Engineering was offered for thefirst time in 2010, with 18 students applying for thecourse.

Scholarship

Polytechnic West, in partnership with InterstaffInternational (an employment company) offeredscholarships to 39 apprentices in 2010.

Training Information

In 2010, Polytechnic West's information centre handledin excess of 59,000 telephone, web and email enquiriesfrom members of the public keen to find out moreinformation about PWA and the courses it offers. Inaddition, the schools and community liaison team gavepresentations to, or had contact with, over 23,900 highschool students and 10,350 adults from across theState.

Training Facilities

During the year PWA invested in the upgrade offacilities and equipment across several key campuses.PWA's Carlisle campus has seen major refurbishmentsto its automotive workshop area to include a 'green'automotive training area providing a 'state of the art'hybrid, electric vehicle and common-rail diesel trainingfacility for these emerging technologies.

PWA's new AeroSpace Training Centre, at JandakotAirport, is in response to industry's need for upgradedfacilities to cater for flying theory, engineering andmaintenance and ground operations training.

Central to the facility is PWA's Boeing 737 aircraft.The former airliner is fully equipped and configuredwith business class and economy seating for100 passengers. The aircraft is maintained in afully serviceable condition to facilitate non-flyingstatic training for students undertaking a range ofengineering and non-engineering skills training,including cabin crew safety and ground handling.

PWA's aircraft training fleet also includes a BeechBaron, Cessna 340 and Robinson Helicopter. Theseaircraft ensure a broad range of training resourceswhich complement a wide cross section of aviation,engineering and technical skills.

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Governing Council Chair Keith Vuleta and Managing Director Wayne Collyer accept the keys to aCamry hybrid donated for training by David Waldron from Toyota.

15

I

PWA's focus in working with industry and enterprisesis to meet the State's workforce development plans forbuilding, attracting and retaining a skilled workforce.

In 2010, PWA delivery units worked closely withindustry to address and produce solutions to industry-wide challenges targeting workforce development,transition to employment programs, skills migrationand the introduction of innovative systems andpractices.

Industry Responsive TrainingTransforming Trade Training (TTT)

PWA's Transforming Trade Training (TTT) strategyoffers employers and apprentices a flexible andresponsive apprenticeship system. In 2010, TTT wasexpanded to 19 qualifications with approximately2,000 enrolled apprentices. The TTT model continuesto attract international and national interest with aWelsh delegation visiting PWA on a fact-finding,mission and both Swinburne University (Victoria) andCanberra Institute of Technology seeking to formpartnerships with PWA in their quest to implement thestrategy.

Resource Sector Training

PWA works closely with a number of mine operatorsto deliver the Certificate IV and Diploma of MineManagement (Open Cut). These include McMahon,Christmas Island Mining, Alcoa, Brockman, Tom PriceMining, CP Mining and Ngarda (one of the largestIndigenous owned and operated contracting companiesin Australia). Supervisors and inspectors are taught andassessed on-the-job at mine sites. Qualifications whichinclude the Certificate IV and Diploma qualificationsare tailored to ensure that each company can traintheir staff according to their specific mining program.

Defence Force Training

PWA delivers training to the Royal Australian Navy(in the Advanced Diploma of Refrigeration and AirConditioning and, units of competency from theCertificate IV in Engineering, Fluid Power) to serviceand repair refrigeration and air conditioning equipmenton Navy ships at sea.

Adult Migrant English Program (AMEP)

PWA through the Adult Migrant English Program(AMEP) delivered the Employment Pathways Program(EPP) and the Traineeship in English and WorkReadiness (TEWR) programs for new migrants, givingthem work-ready language skills and knowledge, andan understanding of Australian workplace culture.

Real Jobs Project

PWA through a partnership with the BurswoodEntertainment Complex and the Accor HotelsGroup has trained 31 students with 21 successfullytransitioned into a range of positions. The programwas acknowledged by both Burswood EntertainmentComplex and Crown Entertainment in 2010 with aDiversity at Work Award. This award recognises theemployment and inclusion of Indigenous Australians inthe workforce. The program will continue in 2011.

Real Jobs Program

KEY PRIORITY INDUSTRY RELATIONSHIPS

Trade Training to International Students

PWA became the first public training provider tocommence delivery of Bricklaying, Wall and FloorTiling and Solid Plastering for international students. Atotal of 31 students completed the training and the firstround of work experience. Industry feedback is verypositive. Commonwealth Register of Institutions andCourses for Overseas Students (CRICOS) coding hasrecently been established for Carpentry, with studentscommencing in the program in 2011.

Workplace Culture and Literacy Program

A Workplace Culture and Literacy program wasdeveloped and delivered to migrant workers in the air-conditioning industry which included an understandingof Australian workplace culture and practices includingsupporting occupational health and safety outcomes.

Training Services

Changes to the Electro-technology Training Packageand VET legislation in electrical trades required thedevelopment of a profile tracking tool for the CapstoneAssessment part of the course. Q-Tracker, a web-

based evidence gathering program, was designedin order to track practical work tasks completed bystudents on the job, and signed off by the employer.Q-Tracker has since been deployed at both the Balgaand Thornlie campuses with approximately 650students currently using the system. Polytechnic Westhas received interest from other stakeholders andtraining providers about the system.

Maintaining Strategic Partnerships

With the newly approved and operational GorgonGas Project on Barrow Island, PWA has establisheda strong partnership with Chevron Australia. A highlyspecialised training program has been developed tomeet strict animal conservation requirements for staffand contractors working on the island. In partnershipwith industry specialists and experts in the field,the training ensures that the strict legislative andmandatory reporting requirements for this importantState project are encompassed in the training. Thetraining is aimed at assisting sick, injured or trappedindigenous wildlife and the minimisation of anyenvironmental impact of employees on site.

Trade Training toInternational Students

Cultural Training toInternational Students

1 7

Polytechnic West is well on track to achieve its keystrategic objective of increasing the level of revenuefrom non profile sources to 40% by 2012. In 2010,commercial revenue increased by 18.6%, to $26.12m.

The following chart illustrates the key non profilerevenue areas.

AMEP42.7% ($11.14M)

AMEP

International-Main31.7% ($8.27M)

InternationalHigher Ed

2.3% ($597K)

International

Polytechnic West has continued its expansion ofcourse products for international students with twofurther VET courses receiving CRICOS code approval(Diploma in Applied Environmental Arts and CertificateIII in Carpentry). These courses will commencedelivery in 2011. Overall, the International Centre sawinternational student enrolments up 4% from 2009.

State Gov3.6% ($927K)

Comm Gov3.5% ($904K)

HigherEdDomestic

0.8% ($213K)

CAT0.8% ($219K)

Others0.6% ($165K)

PWA's Adult Migrant English Program (AMEP)exceeded all key performance indicators during the2010 financial year. Client numbers increased by 25%and SCH delivered by 46% over the previous reportingyear. These results were attributed to the range oflocations offered by PWA and enhanced promotionalactivities. During the same time, AMEP achieved aclient satisfaction rating of 98.2%.

International Customised Training

Customised training programs were successfullydelivered to three international clients in 2010, generatingadditional revenue and leading to satisfied clientsrequesting repeat delivery in 2011. The Internationalteam also delivered nationally accredited VET coursesthrough an auspicing arrangement with new clients inChina and Malaysia. These will continue into 2011.

FFS General10.9% ($2.86M)

Job Ready Program

Polytechnic West was successful in tendering forthe delivery of Professional Development Servicesas part of the Commonwealth Government's 'JobReady' program. All local Job Ready participants willundertake training at PWA before they can progress tothe next stages of the program.

KEY PRIORITY - DIVERSIFIEDREVENUE SOURCES

Workplace English Language and Literacyproject

In October 2010, PWA commenced the delivery of aDepartment of Education Employment and WorkplaceRelations funded Workplace English Language andLiteracy (WELL) project in conjunction with WestraliaAirports Corporation (WAC) at Perth Airport. Throughthe program, 120 WAC employees have developedtheir language, literacy, numeracy, technology andsafety skills.

Higher Education

Higher Education is a key business priority and in2010 there was a significant increase in AssociateDegree student enrolments; up 68% from 2009.The Higher Education Strategic Plan 2010-2013,was established to strengthen the governancearrangements around academic integrity and thequality of course delivery and student administration.The plan also provides for the expansion of PWA'shigher education delivery through the introduction ofadditional courses, as well as increasing participationin the existing courses.

Platinum

Platinum, PWA's commercial sub-brand, wasofficially launched in September 2010. Situated atthe new Wellington Street campus, Platinum offersworkforce training through customised solutionsincluding professional short courses, training needsanalysis, pathways to university, and training forinternational students and migrants to be work ready.In 2010, Platinum delivered customised and industryspecific training to more than 250 businesses andorganisations.

Carbon Footprint Reduction

PWA is committed to reducing its carbon footprint andincreasing green skills and sustainability programs.

PWA submitted its System forAccounting and Reportingof Government Emissions (SARGE) report for July2009/June 2010 to the Department of Environmentand Conservation. This mandatory report on theorganisation's carbon footprint, calculates emissionsbased on data gathered about energy used, fuel fortransport and gases used during training delivery.

The key performance indicator of carbon emissionsper equivalent full time students decreased from

382 to 323 tonnes CO2/m2. Site expansions in2009-2010 Jandakot hangar and extensions toCarlisle Campus have resulted in an increase in netemissions to 7,434 tonnes. Offsets have assisted withcontrolling the key performance indicator of carbondioxide emissions which shows a slight increase from65 to 67 tonnes CO2/m2.

Targets set in PWA's Energy Management Plan2007/8-2011/12, as part of the commitment to theEnergy Smart Government Program, included anaverage reduction in energy use per effective full timestudent (MJ/EFTS) of 20%, relative to 2006-2007, anda gross energy reduction of 10-12% for existing sites.The key performance indicator of MJ/EFTS studenthas decreased by 28.3% from the baseline, exceedingthe target two years ahead of schedule.

Sustainable Practices

PWA is committed to demonstrating leadershipin environmental sustainability. The organisationrecognises the importance of sustainable developmentfor its operations and is using its position toimplement practices, policies and training programsfor a sustainable future. The following initiatives areillustrative of PWA's commitment:

The launch of a new 'co-mingled recyclingprogram' which included the placing of specialisedrecycling bins with signage on all campusesand an associated education program to raiseawareness of recycling.

Green Skills initiatives such as energy savingmonitoring through PWA's SustainabilityCommittee.

Training Packages were reviewed to ensure greenskills and sustainability are included as units ofcompetency for all qualifications (as outlined bythe Federal Government's Green Skills Policy).

Lecturers from the Adult Literacy team haveintroduced composting into the literacy andlanguage courses offered at Balga, creating ablog to show what they do. Students are ableto learn about composting while practicing theirEnglish language skills on the blog and developingcommunication skills using current technology.

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A number of renewable energy training courseson photovoltaic cells or grid connection skills setshave been delivered in 2010. These have beenwell received by industry. Students are trained toClean Energy Council approved standards in thelatest nationally accredited courses and gain skillsets that are increasingly in demand by industry.

Construction of three transportable dwellings forPalmerston Farm, a not-for-profit organisation, aspart of a Jobs Fund Tender. The facilities, whencompleted, will include environmental sustainabilityfeatures such as solar electricity panels with gridconnection capacity, solar hot water, grey waterrecycling plant, water tanks and waterless toilets.

Students in Building and Construction programsare learning about sustainable homes as partof a special project. Several houses are beingbuilt to a 6-star rating which includes special wallstructures and solar energy (PV Cells) installation.Students are learning in a simulated "buildingsite" environment, practicing team work with othertrades areas, gaining practical knowledge of OSHrequirements on a work site, as well as learningabout new sustainable housing technology.

Horticulture students participated in a number ofcommunity based projects which form part of theircourse requirements. These included:

Producing garden designs for the RSPCA's officein Malaga.

Working with the Department of Environment andConservation's Healthy Wetlands Habitat programto facilitate and carry out river restoration works.

Working with the Department of Environmentand Conservation to control blackberry growth atWhistlepipe Gully in Forresffie Id.

Installing reticulation at the Hills CommunitySupport Group in Mundaring.

Natural area restoration works including plantingand erosion control, and weed management forthe Jane Brook Conservation Group in Parkerville.

Garden maintenance and rose pruning atUndercliffe Nursing Home in Greenmount.

Bush restoration work at Friends of LightningSwamp Bush land in Noranda and at the WADepartment of Planning's Helena River site,Guildford.

Seed collecting at the Wildflower Society ofWestern Australia's Glen Forrest seed orchard.

Solar panels line the rooves at Carlisle Campus

KEY PRIORITY - SOCIAL RESPONSIBILITY

Priority Target Groups

PWA is focussed on enhancing the opportunities forunder-represented Western Australians in educationand training.

National Harmony Day

National Harmony Day is an annual multicultural eventproviding all Australians with the opportunity to embraceAustralia's diversity and the many benefits it brings toour society. PWA's Access and Community Servicesdivision organised a Harmony Day event at the Balgaand Thorn lie campuses. Hundreds of students fromacross the organisation, as well as staff and communitymembers, attended the event and were entertained byIndigenous dancers and multicultural performers.

Early Childhood Education

Lecturers from the Children's Services Team have alsoworked with Gosnells Early Years Action Group on theBonding with Books project. Together, lecturers guidestudents who prepare and deliver story sessions inlocal shopping centres, to demonstrate the value ofreading in early childhood education. The sessionsprovide students with valuable practical experiencewhile also encouraging parents to read to their childrenat home, thus supporting the development of youngchildren's pre-literacy skills.

Aboriginal Services

Aboriginal Services have continued to develop theorganisation's commitment to increasing Indigenousenrolments and achievements through:

The Clontarf in Training Program provides supportto Year 12 Clontarf graduates in their transitionto employment-based training. 63 Year 12Indigenous graduates commenced the programin 2010 with 45 currently in apprenticeships andtraineeships, or direct employment as a result oftheir participation in the project.

Polytechnic West worked alongside the Armada leNoongar Community (ANC) to establish anddeliver the Certificate II in Hospitality at the ANC'sCommunity House in Armada le. A café-like facilitywas set-up within the building which is also fittedwith a bar, barista facilities, coffee tables andchairs. Attached to the practical classroom is atheory room fitted with overhead projector and fourcomputers.

Students celebrating Harmony Day 2010

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Disability Support Services

There is currently 1,487 students with a disabilityenrolled at PWA. The number of students registeredwith Disability Services also increased by 7% in 2010.This is predominantly due to the successful marketingand promotion of Disability Services to staff andstudents.

The Disability Support and AccommodationsManagement System, a database launched in July 2010,has enhanced the ability of Disability Services staff toaccess information on individual students and data forreporting requirements across all campuses. As well asensuring privacy and confidentiality, the database alsoprovides centralised management and case notes for acomprehensive audit of support and accommodation ona student needs basis. This has led to a more efficientuse of staff time and more effective and proficient deliveryof advice and services to students.

Adult Community Education

Participation in Adult Community Education courses(image below) exceeded 6,000 enrolments during2010, with 564 courses offered at over 25 locationsin the Perth metropolitan area. The implementation ofthe new short course website has been a highlight of2010, with positive feedback received from studentsand the general public.

SIGNIFICANT ISSUES IMPACTING THE AGENCY

The following provides an overview of the key issuesand trends impacting on PWA throughout 2010and which will continue to direct priorities in theforeseeable future.

Skilling WA Workforce Development Plan forWestern Australia

With an ageing population and emerging andsustained growth in the resources sector, WesternAustralia is at risk of experiencing significant labourand skill shortages.

To meet the challenge of an increased demandfor skilled labour, the State Government launchedSkil ling WA, Workforce Development Plan for WesternAustralia. The plan is to build, attract and retaina skilled workforce and ensure that the State hasthe capacity and capability for continued economicsuccess.

Training providers have been identified in the plan asplaying a critical role in enhancing worker skill levelsand increasing workforce participation, which will beessential to maintain the State's competitiveness in anincreasingly global marketplace.

In 2010, PWA continued to focus on generic andspecific skills training for businesses, school leavers,unskilled workers, the unemployed, and those lookingto re-enter the labour market. Specific strategiesdeployed in 2010 to meet the State's workforcedevelopment goals included:

Delivery of training in institutional and enterprisebased training skill shortage areas.Delivery of skills recognition and specialisedworkplace gap training programs to meet theneeds of the existing workforce.Provision of entry level and skills foundationprograms and services to support job seekers andthe disadvantaged.Development of customised industry trainingprograms targeting research and innovation incollaboration with industry, State Industry TrainingCouncils and Federal Industry Skills Councils.Further refinement of the Transforming TradeTraining initiative designed to improve therelevance and responsiveness of the WesternAustralian apprenticeship training system.

Increased Contestability

Increased contestability for government trainingfunding and competition from public and privatetraining providers, schools and universities continuedto be a key challenge for the organisaiton.

PWA's re-positioning both as a trades providerservicing the resources sector and as a specialistprovider of higher education qualifications in nichemarkets has enabled the organisation to maintain asustainable client base.

In 2010, PWA introduced a range of innovativeemployment focused pathways from well establishedaccess learning and VET for School programs,through to advanced VET and higher educationqualifications. These pathways were directed at bothdomestic and international students and offeredstudents real job prospects and recognised articulationinto degree courses at university.

In addition, PWA consolidated its prominent share inthe apprenticeship market through the expansion ofthe Transforming Trade Training model which is nowdelivered in 19 skill shortage areas.

Training WA: Planning for the Future 2009-2018

Training WA, prepared by the State Training Boardand the Department of Education and Training (nowDepartment of Training and Workforce Development)was released in 2009 and identifies Governmentstrategies and deliverables designed to transform thetraining system in WA over the next 10 years.

Publicly funded training providers including PWA arerequired, through their strategic and business plans,to identify the key strategies and initiatives that theywill implement to respond to the economic imperativesand government priorities outlined in Training WA.

As a result of these strategies, PWA made significantcontributions to the enhancement of the state trainingsystem by increasing enrolments, participation andsupport services for under-represented groups intraining; expanding RPL services across a range ofcritical skill shortage areas; and establishing new andinnovative pathways leading to Diploma and AssociateDegree qualifications.

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PWA takes pride in acknowledging the following keyachievements of students, staff and the organisationduring 2010.

AeroSpace Training Centre Annual Awards

Certificate of Achievement, Diploma ofAeronautics Alvin ChooCertificate of Achievement, Certificate IV inAeronautics Aye Zaw WinCertificate of Achievement, Mechanical ApprenticeGeoffrey GnielCertificate of Achievement, Aeroskills Pre-Apprentice Johnathan RichardsCertificate of Achievement, Avionics ApprenticeJoshua StrikeFlying Scholarship, Aeroskills Pre-ApprenticeKatika FortuneFlying Scholarship, Avionics ApprenticeKivaan EberleCertificate of Achievement, Diploma of AirportManagement Mark SchutsCertificate of Achievement, Certificate IV inGround Operations Rosemary LovedayFlying Scholarship, Mechanical ApprenticeRyan DiverCertificate of Achievement, Aeroskills VET StudentTaylor Edwards

Alan Robert Memorial Fund Refrigeration and AirConditioning Awards

Institute of Refrigeration & Air ConditioningService Engineers and Air Conditioning &Mechanical Contractors Association of WA AwardSteven WoodAlan Robert Memorial Fund Award Emmet ForresterAlan Robert Memorial Fund Award Beau BarrattAlan Robert Memorial Fund Award Gregory WatersHychill Australia Award Bo-Travis LarsonAHI Carrier Australia Award Jamie Hock ChuanSehested Venn-QuayAJ Baker and Sons Award Brendan SparkBK James Award (AIRAH) Daniel CareyARACTA Award Bradley O'ByrneAIRAH Award Courtney CattleAirefridge Australia Scholarship Award JosephPowell

Ansource Industry Award

Amber Farley

Beyondblue Inspirational Award for Wellbeing, WA\ A

John van Bruchem (Lecturer)

I FUJI 11011 /-\WUIU

Alissia Gomez

City of Swan Student Art Award

Luke O'Malley

Elecirical Group Training (EGT) Awards

Excellence in Training Award Emma Jane PotterEGT Gold Award (4th Year Apprentice) IanMcLaughlinEGT Bronze Award (4th Year Apprentice) PavleKuvekalovic

Endeavour Executive Award

Anne Ottaway (Lecturer)

Gold Plate Award for Best Restaurant within aTraining Establishment

Finalist, Bentley Pines Restaurant

GOrriuoc.: ourvey Awards

Winner, Sam VictoryWinner, Di Souphandavong

Honourable Peter Collier MLC; Minister for Training andWorkforce Development with Geof Gale Medallist, Lucas Kickettand PWA Managing Director, Wayne Collyer.

STUDENT AND POLYTECHNIC AWARD WINNERS

Mercedes Benz WA Fashion Design Awards

Winner Eco Category Alissia GomezRunner Up, Women's Ready to Wear RachelMotteram

Polytechnic West Annual Student Awards

Apprentice of the Year and Geof Gale Medallist forMost Outstanding Student Lucas KickettVocational Education and Training Student of theYear Erin Van HaeftenAboriginal and Torres Strait Islander Student ofthe Year Kristy Lee LeiluaInternational Student of the Year Ming Zhi BenjaminTan

Trainee of the Year Kacey NichollsEnglish Language Student of the Year AbdulaiBarrie and Marc Ntunzwenimana (joint)

Polytechnic West, Western Australian Institute ofFashion and Textiles Annual Fashion Awards

Most Consistent Student of the Year Award KaraCraig

Prot a Porter Collection of the Year Brooke Da CruzGown of the Year Jaimee MillarxPress Fashion Graduate Award Jonte PikeGerber CAD Training Award Corinne McPhersonStudent of the Year Hannah Mackley

RAC Advantage Awards

Autobody Refinishing Winner, Mitchell CalderAutobody Repair Winner, Cameron Clarke

StyleAia rasnion Awaras

Finalist, Jonte PikeFinalist, Kallan WatkinsFinalist, Jennifer Stewart

\AI-1-- Australian Hyogo Banshu Textile Award

Jonte Pike

WiA !lull ling Awards

Finalist, Aboriginal and Torres Strait IslanderStudent of the Year Lucas KickettFinalists, Apprentice of the Year David Moodie andEmma Jane PotterFinalist, Large Training Provider of the YearPolytechnic West

Work Intergrated Scholarships, AustralianComputer Society Foundation

James SmithQuin Roydhouse

Worldskills Australia, National Finals

Silver MedallistsRetail Baking, Bread, Matthew MitchellWall and Floor Tiling, Jake HallBronze MedallistsAutobody Repair, Wayne LeaVehicle Painting, Nathan Florrison

Jaimee Millar's Award winningGown of the Year, PWAWest Australian Institute of Fashionand Textiles Fashion Awards

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CERTIFICATION OF KEY PERFORMANCE INDICATORS

POLYTECHNICWESTThe PotytechnIc of Western Australia

Armada le, Balga, Bentley, Carlisle,

Jandakot. Midland, Thorn lie

PO Box 1336 Midland WA 6936

Course information cis 9267 7500

General enquiries as 9267 7777


We hereby certify that the performance indicators are based on proper records, are relevant andappropriate for assisting users to assess Polytechnic West's performance and fairly represent theperformance of Polytechnic West for the financial year ended 31 December 2010.

Keith VuletaChair of the Governing CouncilPolytechnic West


Date

ADDITIONAL KEY PERFORMANCEINDICATOR INFORMATION

Desired Outcome

The provision of vocational education and training services to meet community and industry training needs.

Effectiveness IndicatorsThe effectiveness indicators measure the achievement of vocational education and training in meeting communityand industry needs via student and graduate satisfaction, labour force status of graduates, and profile achievement.

TAFE Student Satisfaction Survey

The TAFE Student Satisfaction Survey is administered annually on the behalf of the Department of Training andWorkplace Development by Colmar and Brunton. The key focus is to attain an understanding of the students'training requirements and measure the quality of the delivery of training and services provided by PWA. Thesurvey used a mass market mail out to a random sample of PWA students who were enrolled in either the firstor second semester of 2010. Options were also provided for students to complete the survey either on-line, orthrough the use of computer assisted telephone interviewing.

KPI 1 Student SatisfactionThe overall student satisfaction rating is obtained from the 2010 TAFE State Student Satisfaction Survey andmeasures the extent to which students were satisfied with the training they received from PWA. The measurerepresents the proportion of 'satisfied' and 'very satisfied' (on a five point scale) responses received fromstudents responding to the question "Overall how satisfied were you with your course?"

Table 1 Student Satisfaction2006 2007 2008 2009 2010 2010 TargetActual Actual Actual Actual Target Actual Variance

Polytechnic West 85% 89% 85% 86% 86-90% 86% 0%

Western Australia 86% 87% 85% n/a n/a n/a n/a

Source: Department of Training and Workplace Development, 2010 Student Satisfaction Survey.

Of the 16,577 potential population identified, 9,264 individuals were contacted from which there were 2,046 usablereturns, representing a response rate of 22%. The college's standard error for the 2010 survey was 0.73%, with arelative sampling error of ±1.4% at the 95% confidence level. Student responses to the survey comprised 1,463institutional based students (72%) and 570 employment-based apprentices and trainees (28%).

The overall, student satisfaction at PWA remains high with 86% of respondents claiming to be either 'satisfied' or`very satisfied'. The level of satisfaction achieved in 2010 has remained consistent with results achieved in 2009(86%).

Student Outcomes Survey

The 2009 Student Outcomes Survey was conducted on behalf of the National Centre for Vocational EducationResearch (NCVER) by the Social Research Centre. The survey measures vocational education and trainingstudents' employment levels, further study, and opinions on the training undertaken. College level data iscollected by NCVER every second year. Questionnaires were sent to a stratified (field of education, sex andage), randomly selected sample of PWA graduates, who had successfully completed a qualification in theprevious year. In 2009, 1,213 PWA graduates responded to the Student Outcomes Survey, representing aresponse rate of 44.2%. PWA is unable to provide data for 2010 as statistically valid college level survey datawas not collected by NCVER for this year.

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KPI 2 Graduate AchievementGraduate achievement is a question in the Student Outcomes Survey and measures the extent to which PWAGraduates have wholly or partly achieved their main reason for undertaking their course. The measure showsthe proportion of graduates who indicated they had fully achieved or partly achieved their main reason for doingthe training. The question has four response options 'Yes', 'No', 'Partly' or 'Don't know yet'.

Table 2 Graduate Achievemer+2005 Actual 2007 Actual 2009 Actual 2010 Target 2010 Actual

Polytechnic West 84% 88% 89% n/a n/a

Western Australia 84% 87% 88% n/a n/a

Australia 85% 86% 86% n/a na/

Source: Student Outcomes Survey was conducted by the National Centre for Vocational Education Research(NCVER). Notes: College level data is collected in alternate years commencing 2005. Percentages are rounded to thenearest whole percentage.

In 2009, 1,202 graduates responded to the graduate achievement question in the Student Outcomes Surveyrepresenting a sample with a standard error of ± 1.8% at the 95% confidence level. The 2009 results represent asmall but statistically insignificant (1%) improvement over the 2007 results. Polytechnic West is unable to providedata for 2010 as statistically valid college level survey data was not collected by NCVER for this year.

KPI 3 Graduate DestinationGraduate destination data is also taken from the Student Outcomes Survey and measures the proportion ofgraduates in employment. This measure shows the extent to which the college is providing relevant, qualitytraining that enhances student employability. Graduate employment status measures who was employed,unemployed or not in the labour force, and was obtained by calculating the graduates in each categorycompared to the total valid responses over the total responses, and expressed as a percentage.

Table 3 Graduate Destination2005 Actual 2007 Actual 2009 Target 2009 Actual Target

Variance

Graduates Employed

Polytechnic West 75% 83% 80-85% 79% -1%

Western Australia 78% 83% n/a 79% n/a

Australia 79% 80% n/a 78% n/a

Graduates Unemployed

Polytechnic West 10% 9% <12% 11% 0%


Australia 10% 9% n/a 11% na/

Graduates not in Labour Force

Polytechnic West 15% 8% <10% 10% 0%


Australia 10% 10% n/a 10% n/a

Source: Student Outcomes Survey was conducted by the National Centre for Vocational Education Research (NCVER).Notes: College level data is only produced in alternate years which commenced in 2005.

Graduates classified as 'unemployed' refer to students seeking full-time or part-time employment and may includegraduates who have re-enrolled into higher and further education. Graduates classified as 'not in the labour force'identified that they were not currently seeking employment, and may include graduates who have re-enrolled intohigher and further education. Percentages are rounded to the nearest whole percentage.

In 2009, 1,213 graduates responded to the Graduate Destination question in the Student Outcomes Surveyrepresenting a sample that has a standard error of ± 1.8% at the 95% confidence level. The 2009 results showfewer graduates were in employment following completion of their course when compared to 2007. The mainreason for this was the overall increase in the unemployment rate within the Australian labour market as a resultof the global financial crisis. Polytechnic West is unable to provide data for 2010 as statistically valid college levelsurvey data was not collected by NCVER for this year.

KPI 4 Achievement of non-profile deliveryThis indicator demonstrates the extent to which Polytechnic West generates non-profile vocational educationand training delivery. Non-profile refers to fee-for-service commercial activities such as industry skillingprograms, overseas contracts and international students, Adult Community Education (ACE), industry specifictenders, labour market programs, auspicing and other fee-for-service commercial activities.

CIF Achievement of non-profile delivery2006 Actual 2007 Actual 2008 Actual 2009 Actual 2010 Target 2010 Actual Target

Variance

Student Curriculum Hours (SCH)

Non-ProfileDelivery

1,043,859 1,015,348 1,377,658 2,480,019 2,500,000 2,538,102 38,102

ProfleDelivery

6,166,700 6,266,373 6,661,384 7,184,579 6,813,602 7,203,919 390,317

TotalDelivery

7,210,559 7,282,721 8,039,042 9,664,598 9,313,602 9,742,021 428,419

Source: The actual delivery SCH data was sourced from the February 2011 AVETMISS collection for 2010 delivery.The profile target was sourced from the original 2010 DPA issued during the previous year between the Departmentof Training and Workplace Development and Polytechnic West. The non-profile target was sourced from PolytechnicWest planning targets endorsed by the college's Governing Council.

In 2010, the actual SCH was calculated using the End of Study based reporting methodology (enrolments endingin the collection year) and the Federal and State "National Training Agreement (NTA)" formerly the "Skil ling Australia'sWorkforce (SAW) Agreement."

Auspicing refers to the process of delivery validation and moderation on behalf of another provider as definedunder Registered Training Organisations (RTO) guidelines.

The actual non-profile commercial delivery was 3% higher than the SCH recorded in 2009 giving anachievement over the 2010 target by nearly 1.5%. Polytechnic West's 2010 commercial activities exceeded thetarget due to an increase in auspicing and a strong increase in delivery in the AMEP.

KPI 5 Achievement of profile delivery (by Industry Group)This achievement of profile delivery reports the effectiveness of PWA in meeting its Delivery and PerformanceAgreement targets. The delivery profile is negotiated directly with the Department of Training and WorkforceDevelopment and constitutes PWA's profile funded training plan. The delivery profile takes into considerationgovernment priorities, the needs of individuals, industry and the local community, and is based on the originalnegotiated DPA.

The delivery profile is documented in the form of a planning matrix by industry groups that reflect the rangeand depth of PWA's delivery in vocational education and training by industry and employment categories. Theplanned SCH delivery in each industry group has a corresponding actual SCH delivery for 2010 and indicatesthe proportion of SCH achieved.

Table 5 Achievement of Profile Delivery (DPA) by Industry GroupIndustry Description 2010 Target 2010 Census 2010 Target

Planned Actual Achievement01A Recreation Sports and Entertainment 52,877 61,245 115.8%

01B Visual and Performing Arts 72,172 86,015 119.2%

01C Design 0 0 0.0%

02A Automotive 626,600 641,874 102.4%

03A Building and Constructions 770,940 863,164 112.0%

03B Surveying and Building 78,700 52,886 67.2%

04A Community Service Workers 170,362 244,195 143.3%

04B Education and Childcare 474,673 460,885 97.1%

04C Health 58,920 42,821 72.7%

04D Library Workers 0 0 0.0%

05A Finance Insurance Property Service Workers 21,500 13,504 62.8%

06A Food Trades and Processing 201,670 172,585 85.6%

07A Clothing Footwear and Soft Furnishings 135,803 136,296 100.4%

07B Furniture Manufacture 245,709 172,807 70.3%

08A Communications 0 0 0.0%

08B Printing & Publishing 0 0 0.0%

09A Engineering and Drafting 202,109 235,500 116.5%

09B Metal and Mining 830,860 894,851 107.7%

10A Animal Care 143,313 193,674 135.1%

10B Forestry, Farming and Landcare 32,445 37,356 115.1%

10C Fishing 0 0 0.0%

10D Horticulture 39,540 44,431 112.4%

11A Process Manufacturing 0 0 0.0%

12A Personal Service 102,377 86,580 84.6%

12B Retail 0 0 0.0%

13A Cooking 96,620 116,826 120.9%

13B Hospitality 67,540 76,990 114.0%

13C Tourism 0 0 0.0%

13D Travel Agents 0 0 0.0%

14A Transport Trades, Storage and Associated 43,100 41,951 97.3%

15A Electrical and Electronic Engineering 119,638 181,701 151.9%

15B Electrical Trades 385,333 308,471 80.1%

16A Accounting and Other Business Services 151,237 203,220 134.4%

16B Management 102,267 95,060 93.0%

16C Office and Clerical 182,891 226,765 124.0%

17A Computing 342,617 365,272 106.6%

18A Science and Technical Workers 152,000 147,575 97.1%

19A ACE 0 0 0.0%

19B Adult Literacy / ESL 850,061 945,519 111.2%

19C Languages 3,500 1,700 48.6%

19D Miscellaneous 0 0 0.0%

19E Targeted Access and Participation Courses 56,228 52,200 92.8%

Totals 6,813,602 7,203,919 105.7%

Source. Profile target is sourced from the original DPA negotiated with the Department of Training and WorkforceDevelopment in November of the previous year. In 2010, the actual SCH is calculated using the End of Study basedreporting methodology (enrolments ending in the collection year) in line with the Federal and State "National TrainingAgreement (NTA)" formerly the "Skilling Australia's Workforce (SAW) Agreement."

Table 6 Profile Achievement (DPA)Actual Actual Actual Actual Actual

Achievement 2006 Achievement 2007 Achievement 2008 Achievement 2009 Achievement 2010

%104.3%

AchievementProfile 106.4% 105.7%

Source: Data prior to 2007 for actual profile (SCH) represents commencements. Due to changes in reportingprocedures actual profile (SCH) from 2007 signifies end of study. The significance of the change has been to movefrom recording student data from the date they commence to recording student data to date students' study whencompleted. The overall shift in total value in SCH between the two methods in minimal.

Prior to 2008 performance reporting was based on the planned SCH as specified in the final DPA negotiated withthe Department of Training and Workforce Development in September of the reporting year. From 2008 performancereporting is based on PWA's target DPA achievement which refers to the original DPA SCH target signed inNovember of the previous year. In order to provide accurate performance reporting with 2010, the 2006 and 2007profile achievement percentages shown in Table 6 have been recalculated using original DPA target SCH figures.

In 2010 PWA experienced growth in the apprenticeship and traineeship delivery areas in Education andChildcare, Clothing, Footwear and Soft Furnishings and Animal Care.

Institutional delivery experienced growth in Building and Construction, Electrical and Electronic Engineering andMetal and Mining. Institutional delivery also exceeded the planning target for students enrolled in certificate anddiploma programs, with significant increased delivery in electrical trades, furniture manufacturing, education andchildcare and surveying and building and adult literacy industry areas.

In the overall industry groups, significant growth was experienced in Electrical and Electronic Engineering, Officeand Clerical, Building and Construction, Accounting and Other Business Services, and Engineering and Drafting.Electrical Trades, Furniture Manufacture, Food Trades, Surveying and Building areas were below target due tolow student demand.

During 2010 PWA renegotiated its DPA with the Department of Training and Workplace Development to increaseits profile in order to meet delivery growth demands.

Overall Polytechnic West exceeded the original planned target by 390,317 SCH giving an overall achievement of105.7%.

Efficiency IndicatorKPI 6 Delivery Cost per Student Curriculum Hour (SCH)The overall cost per SCH demonstrates the efficiency with which PWA manages its resources to enable theprovision of vocational education and training programs. The overall cost per SCH shows the aggregate unit costof delivery output per SCH, based on the delivery costs (total cost of services) as detailed in the 2010 FinancialStatements.

Table 7 Delivery Cost per SCH

2006 2007 2008 2009 2010

Target cost per SCH $13.95 $13.08 $13.70 $13.45 $13.13

Actual Cost per SCH $14.16 $13.77 $13.06 $12.73 $13.75

Annual Percentage Change +2.6% -2.8% -5.16% -2.5% +8.0%

Note: The total delivery cost per SCH is calculated by dividing the total cost of services as defined in the 2010Financial Statement by the total SCH delivered including profile and non-profile delivery.

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The basis for calculating the efficiency indicator has changed for 2009 and 2010. The total SCH figures nowincludes those SCH such as credit transfers, exam only SCH and SCH outcome updates. These SCH, althoughnot funded from profile or non profile sources, result in an effort from PWA staff and as such contribute to thetotal cost of services. These SCH totalled 385,329 in 2009 and 624,332 in 2010 and are of a material nature indetermining cost of service. The rates have not been amended for 2006, 2007 and 2008.

The variance between the 2010 target estimate and the actual cost is +62 cents which comprised of employeebenefits and on-costs (-20 cents), consumables and minor works & equipment (+12 cents), supplies andservices other (+25 cents), other Expenses (+43 cents), depreciation expense (-4 cents), grants & subsidies (-1cents) cost of sales (-2 cents) and building maintenance (+9 cents).

The aggregate unit cost is calculated by determining the total cost of services, as reported in the PWA Statementof Financial Performance, and divided by the actual SCH delivered for profile and non-profile activities (sourcedfrom the 2010 final data collection). Delivery at PWA is diverse with a high trade/workshop component that byits nature incurs a higher delivery cost. When comparing the average unit cost of delivery for PWA to previousyears, it is necessary to examine a range of underlying factors that can contribute to and affect delivery costs.Delivery costs can vary between courses and are influenced by a range of factors that include:

The volume and mix of deliveryClass size, student and market demandsMode of delivery and teaching strategies employedCourse characteristics and target groupQuantum of trade/workshop delivery levelsTraining standards and associated competency levelsLocation, facilities, equipmentConsumable costs

Ministerial Directives

No Ministerial directives were received during thefinancial year.

Other Financial Disclosures

Pricing policies of services providedFees and charges levied by the PWA were inaccordance with the requirements of the following:

Vocational Education and Training Act, 1996.Vocational Education and Training Regulations,1996.

Policy Guidelines for Publicly Funded RegisteredTraining Organisations (RTOs).Programs for Fees and Charges.

PWA has complied with the requirements of theFinancial Management Act, 2006 and every otherrelevant written law, and exercised controls whichprovide reasonable assurance that the receipt,expenditure and investment of monies, the acquisitionand disposal of public property and incurring of liabilitieshave been in accordance with legislative provisions.

Employment Relations and Resources

Under Ministerial direction, the Department of Trainingand Workforce Development Labour Relations Unitcoordinates industrial and workplace relations strategy,and policy, for the ten VET agencies across WA'spublic sector. Within this framework PWA assisted inthe implementation of the following industrial relationsinitiatives:

Provided a senior member of staff to participatein the bargaining party for the 2011 Public VETProviders General Agreement.

Ensured the provisions of the 2008 TAFELecturers' General Agreement were promoted andadhered to; specifically in relation to flexible hoursand increased access to permanent employmentacross the agency for lecturing staff.

Representation at the Western Australian IndustrialRelations Commission on significant industrialmatters before that forum.

Coordinated and facilitated Joint ConsultativeCommittees with the two relevant unions who haverepresentation across the organisation.

Staff Development

Polytechnic West provides a comprehensive PACDCalendar designed in conjunction with both theorganisation's needs and individual staff needs.In addition, PWA also provides a succession andleadership program for aspiring leaders as well as thewellness program, which is provided for all staff.

During the financial year, our employees participatedin 287 courses internally and 168 courses externally.

Workers' Compensation

PWA managed a total of 36 active workers'compensation claims, including 14 new claims, during2010. The resultant lost working time associated withthese claims was 2,653 working days. In managingthese claims, PWA used a number of rehabilitationand return to work strategies to ensure that injuredstaff members were provided with every opportunityto return to their pre-injury role. PWA employeesworked closely with Riskcover and Education andTraining Shared Services (Employee SupportServices) to minimise claims. In order to avoid issuesdeveloping into workers' compensation claims, therole of the Occupational Safety and Health Officer wasrefocussed to ensure appropriate, safe work practiceswere adhered to across the agency.

Governance DisclosuresContracts with Senior Officers

In accordance with the requirements of theDepartment of Treasury and Finance on disclosure ofsenior officers:

Senior officers did not have any shareholding inthe PWA.To the best of the PWA's knowledge, seniorofficers did not have any interest in contractsmade or proposed with PWA.

Insurance premiums paid to indemnifymembers of the Board

PWA has paid $8,166 for Directors and Officers'Liability Insurance to indemnify any director (asdefined in Part 3 of the Statutory Corporations(Liability of Directors) Act,1996) against a liabilityincurred under sections 13 or 14 of the StatutoryCorporations (Liability of Directors) Act,1996.

33

Compliance with Public SectorStandards and Ethical CodesDuring 2010, there were no applications lodged inrelation to breaches of the Public Sector Standardsin Human Resource Management. PWA continues towork cooperatively with all parties in support of thestandards.

PWA's Code of Conduct was in operation, activelypromoted and upheld during 2010.

Record Keeping Plans

Throughout 2010, PWA identified and removedsignificant volumes of old records from all campuses.

This project also sought to reduce record holdingsin our external storage facility by assessing a largequantity of material simply boxed and sent to storageover the years.

Computerised, self-paced Records Awareness trainingfor all staff continued in 2010 and basic training for theTotal Records and Information Management (TRIM)System was introduced as part of a limited rollout ofTRIM Context 6.2.

TRIM 6.2 will ensure that the organisation's recordsmanagement systems support and facilitatecontemporary records management practices.

Government Policy RequirementsOccupational Health and Safety (OSH)

PWA is committed to promoting a safe workplace thatadheres to, and promotes, the Occupational Safetyand Health Act, 1984.

The Human Resource and Workplace Relationsdirectorate includes two dedicated OSH staff who areresponsible for managing the PWA OSH commitmentsand standards; and also overseeing workplace levelcommittees.

PWA maintains a productive working relationshipwith Work Safe WA which has ensured that workplacesafety matters are dealt with as a priority by PWA.

During the year an external audit was undertakenof OSH systems with results indicating a significantimprovement across Management Commitment,Planning, Consultation, Hazard Management andTraining.

In 2010, there was a 20% decrease in the lost timeinjury/disease incidence rate dropping from 1c1/0 in2009 to 0.8% in 2010. 2010 also showed an 11%decrease in the lost time injury severity rate, fallingfrom 45% in 2009 to 40% in 2010. These results arewell received given the agency's full time equivalent(FTE) staffing figure increasing in 2010 from theprevious year. No fatalities were recorded during theyear.

AdvertisingElectoral Act, 1907 Section 175ZEIn accordance with section 175ZE of the ElectoralAct, 1907, PWA incurred the following expenditure inadvertising, market research, polling, direct mail andmedia advertising:

1. Total expenditure for 2010 was $197,034.2. Expenditure was incurred in the following areas:

Advertising agencies $35,950EOC Group $27,950Teber Pty Ltd $8,000

Advertising/PR $126,388Internet $8,961Expos $12,131General (Tenders/Pub Not.) $44,103West Aust Newspapers $43,054Local Newspapers $39,574Other Press (Aerospace Aust.) $9,854

Market research organisations NilNil

Polling organisations NilNil

Direct mail organisations $1,669Lasermail $1,669

Media Advertising $1,737Marketforce OMD $1,737

DISABILITY ACCESS AND INCLUSION PLAN

Disability Services (DS) meets the needs of people with disabilities (PWD) by implementing the following sixdesired outcomes of the Disability Access and Inclusion Plan (DAIP). These are reflected in the six areas ofexcellence of PWA's Strategic Plan 2010-2012 across:

Outstanding Student ExperienceIndustry RelationshipsDiversified Revenue SourcesSocial Responsibility.

1. People with disabilities have the same opportunities as other people to access the services of, andany events organised by PWA.Strategies Activities Key Performance Indicators imDAIP implementation bySteering Committee.

Three Steering Committee meetingsthroughout 2010.

Reports against the six DAIP outcomesfrom:

Training and ResourcesCampus Management and FacilitiesProfessional and CareerDevelopmentTeaching and LearningPlanning and OrganisationalEffectiveness.

Manager, DisabilityServices (DS) on ClientServices StandingCommittee.

Successful marketing.Promotion of DS with CustomerService.

DAIP and Disability Service progressreports.Enrolment data identifying 1,440SWA.Increase of 7% in registrations ofSWD with DS.

Services that respond tothe people with disability.

Customer service and call centres thatrespond appropriately to people withdisability.

Flexible enrolment hours toaccommodate people from diversebackgrounds.Customer service informationavailable in alternative formats.

2. People with disabilities have the same opportunities as other people to access Polytechnic West'sbuildings and other facilities.Ensure that buildings,facilities, equipment andsignage are accessible toPWD.

Monitor PWA Website.Improve signage across campuses.

PWA website in compliance with theWeb C 3 content list.Updates to the intranet.Improved signage at Midlandcampus.

Ensure that quantityand location of ACRODparking adequatelymeets the needs of PWDat Polytechnic West.

Update and improve parking for PWD inconsultation with Campus Managers.

Increase of two ACROD bays acrosscampuses.

Premises and facilitiesleased by PWA areaccessible to PWD.

As part of the acquisition of lease,construction of new premises andenhancements to existing premises,the Australia Standard 1428.1-2001and 1428.2-1992 are considered andcomplied so as to provide reasonableaccess for people with disabilities.

Consultation with Manager of Enterpriseand Business Development oncontractual arrangements for PD withcanteen staff.

3. People with disabilities receive information from Polytechnicto access the information as readily as other people are able to

West in a format that will enable themaccess it.

Provide all information inan accessible format forPWD at PWA across allareas.

Provision of all information inalternative formats on request.Access to learning for PWDfacilitated with support staff such asinterpreters.Certificate I Gaining Access toTraining and Employment (GATE)for people with mental health andan intellectual disability.

Information presented at:Skills West.Careers expo.

Texts available in electronic formatacross trade delivery areas.GATE delivery with units from MetalFabrication, Information Technologyand Commercial Cookery.

4. People with disabilities receive the same level and quality ofWest as others receive from the organisation's staff.

service from the staff of Polytechnic

Raise awareness withstaff and students ofdisability access andinclusion issues.

Staff induction by DS at Professionaland Career Development (PACD)sessions.Informal staff information sessions.

Sessions each semester for newlecturers and GOSAC staff.

Provide ProfessionalDevelopment for staff toimprove participation ofPWD.

PD for lecturers in:Journey of LearningAccommodating LDDealing with Attention DeficitHyperactivity Disorder/AttentionDeficit Disorder.

PACD delivered two sessions for 50staff who indicated 90% satisfactionratings.Four sessions delivered in QualityWeek PD to 127 staff with highsatisfaction ratings.

5. People with disabilities have the same opportunities as otherPolytechnic West grievance procedure.

people to make complaints using the

Make sure that grievancemechanism is accessible.

Provision of student training with theuse of Combit on request.

Student assistance from DS staff with thecompletion of two grievances on Combitsystem regarding access matters. Bothsuccessfully resolved.

6. People with disabilities have the same opportunities as otherconsultation at Polytechnic West.

people to participate in an public

Students and familiesconsulted on trainingfor NCVER research inaccordance with ethicalguidelines.

Questionnaire for students with adisability registered with DS.

Results from 21 participants outlining themost effective supports in the trainingenvironment.

Auditor General

INDEPENDENT AUDITOR'S REPORT

To the Parliament of Western Australia

POLYTECHNIC WEST

Report on the Financial StatementsI have audited the accounts and financial statements of the Polytechnic West.

The financial statements comprise the Statement of Financial Position as at 31 December 2010,the Statement of Comprehensive Income, Statement of Changes in Equity and Statement ofCash Flows for the year then ended, and Notes comprising a summary of significant accountingpolicies and other explanatory information.

Governing Council's Responsibility for the Financial StatementsThe Governing Council is responsible for keeping proper accounts, and the preparation and fairpresentation of the financial statements in accordance with Australian Accounting Standardsand the Treasurer's Instructions, and for such internal control as the Governing Councildetermines is necessary to enable the preparation of financial statements that are free frommaterial misstatement, whether due to fraud or error.

Auditor's ResponsibilityAs required by the Auditor General Act 2006, my responsibility is to express an opinion on thefinancial statements based on my audit. The audit was conducted in accordance with AustralianAuditing Standards. Those Standards require compliance with relevant ethical requirementsrelating to audit engagements and that the audit be planned and performed to obtain reasonableassurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgement, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the Polytechnic's preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accounting policiesused and the reasonableness of accounting estimates made by the Governing Council, as well asevaluating the overall presentation of the financial statements.

I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for myaudit opinion.

OpinionIn my opinion, the financial statements are based on proper accounts and present fairly, in allmaterial respects, the financial position of the Polytechnic West at 31 December 2010 and itsfinancial performance and cash flows for the year then ended. They are in accordance withAustralian Accounting Standards and the Treasurer's Instructions.

Page 1 of 2

4th Floor Dumas House 2 Havelock Street West Perth 6005 Western Australia Tel: 08 9222 7500 Fax: 08 9322 5664

Polytechnic West

Report on ControlsI have audited the controls exercised by the Polytechnic West. The Governing Council isresponsible for ensuring that adequate control is maintained over the receipt, expenditure andinvestment of money, the acquisition and disposal of public and other property, and theincurring of liabilities in accordance with the Financial Management Act 2006 and theTreasurer's Instructions, and other relevant written law.

As required by the Auditor General Act 2006, my responsibility is to express an opinion on thecontrols exercised by the Governing Council based on my audit conducted in accordance withAustralian Auditing Standards.

OpinionIn my opinion, the controls exercised by the Polytechnic West are sufficiently adequate toprovide reasonable assurance that the receipt, expenditure and investment of money, theacquisition and disposal of property, and the incurring of liabilities have been in accordancewith legislative provisions.

Report on the Key Performance IndicatorsI have audited the key performance indicators of the Polytechnic West. The Governing Councilis responsible for the preparation and fair presentation of the key performance indicators inaccordance with the Financial Management Act 2006 and the Treasurer's Instructions.

As required by the Auditor General Act 2006, my responsibility is to express an opinion on thekey performance indicators based on my audit conducted in accordance with AustralianAuditing Standards.

OpinionIn my opinion, the key performance indicators of the Polytechnic West are relevant andappropriate to assist users to assess the Polytechnic's performance and fairly represent indicatedperformance for the year ended 31 December 2010.

IndependenceIn conducting this audit, I have complied with the independence requirements of the AuditorGeneral Act 2006 and the Australian Auditing Standards, and other relevant ethicalrequirements.

GLENACT' G AUDITOR GENERAL8 arch 2011

Page 2 of 2


FINANCIAL STATEMENTS POLYTECHNIC WEST

POLYTECHNICWEST

Pciyec'biic Wester A:shag:7

6,,

The accompanying financial statements of Polytechnic West have been prepared in compliance withthe provisions of the Financial Management Act 2006 from proper accounts and records, to presentfairly the financial transactions for the year ending 31 December 2010 and the financial position as at31 December 2010.

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

Keith Vuleta

Polytechnic West


Kevin WilsonChief Financial OfficerPolytechnic West

Date

Polytechnic WestSTATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 31 DECEMBER 2010

2010 2009

COST OF SERVICESExpenses

Employee benefits expense

Supplies and services

Depreciation

Finance costs

Grants and subsidies

Cost of sales

Loss on disposal of non-current assets

Other expenses

Total cost of services

Notes

6

7

8

9

10

15

19

11

IncomeRevenue

Fee for service 12

Student fees and charges 13

Ancillary trading 14

Sales 15

Commonwealth grants and contributions 16

Interest revenue 17

Other revenue 18

Total revenue

Gains

Gain on disposal of non-current assets

Total gains

Total income other than income from State Government

NET COST OF SERVICES

INCOME FROM STATE GOVERNMENTService appropriation

Resources received free of charge

Total income from State Government

SURPLUS/(DEFICIT) FOR THE PERIOD

OTHER COMPREHENSIVE INCOME

Changes in asset revaluation surplus

Total other comprehensive income

TOTAL COMPREHENSIVE INCOME/(DEFICIT) FOR THE PERIOD

19

20

94,169,350

31,612,692

5,157,241

10,246

411,779

1,378,395

9,760,715

142,500,417

26,122,668

10,508,573

1,186,662

1,435,844

1,890,700

956,531

1,461,466

43,562,444

16,588

16,588

43,579,032

(98,921,385)

92,743,239

1,418,411

94,161,651

(4,759,734)

(5,326,445)

(5,326,445)

(10,086,179)

86,182,416

26,345,800

5,097,344

14,236

467,755

1,395,655

39,795

8,331,965

127,874,966

... .

s,.

'...

22,034,758,fil- 10,603,936

1,453,704.

,:. 1,420,997

5,779,850.(:..r,

564,504

1,289,108

43,146,857

43,146,857

(84,728,109)

86,178,769

1,407,639

87,586,408

2,858,298

(12,519,098)

(12,519,098)

(9,660,800)

The Statement of Comprehensive Income should be read in conjunction with the accompanying notes.Refer to Note 44 'Schedule of Income and Expenditure by Service.

0A GAUDITED

Statutory Financial Statements 2010.xls 4/03/2011 1:47 PM

Polytechnic WestSTATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER 2010 2010 2009

ASSETS

Current AssetsCash and cash equivalents

Restricted cash and cash equivalents

Inventories

Receivables

Other current assets

Non-current assets classified as held for sale

Total Current Assets

Non-Current AssetsProperty, plant and equipment

Restricted cash and cash equivalentsTotal Non-Current Assets

TOTAL ASSETS

Notes

33

21,33

22

23

24

25

26

21,33

LIABILITIES

Current LiabilitiesPayables 28

Borrowings 29

Provisions 30

Other current liabilities 31

Total Current Liabilities

Non-Current LiabilitiesProvisions

Other non-current liabilities

Total Non-Current Liabilities

TOTAL LIABILITIES

NET ASSETS

EQUITY

Contributed equity

Reserves

Accumulated surplus/(deficit)

TOTAL EQUITY

30

31

32

S

7,970,635

3,749,604

615,073

6,960,251

792,333

20,087,896

201,696,346

201,696,346

221,784,242

2,897,902

13,708,614

1,665,608

18,272,125

3,930,50332,783

3,963,287

22,235,411

199,548,830

65,592,370

124,253,475

9,702,986

199,548,830

The Statement of Financial Position should be read in conjunction with the accompanying notes.

0A-C:N\AUDITED

Statutory Financial stAtprnpnts min yls 4/M/7011 1.47 PM

11,407,607

5,383,222

589,284

6,832,342

1,080,684

25,293,139

199,328,466

1,268,709

200,597,175

225,890,314

2,409,401

37,262

12,103,473

3,537,070

18,087,206

3,561,29149,175

3,610,466

21,697,671

204,192,643

60,150,003

129,579,920

14,462,720

204,192,643

Polytechnic WestSTATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31.DECEMBER 2010 2010 2009

Notes

CASH FLOWS FROM STATE GOVERNMENT

Service appropriation Department of Training and Workforce Development

Capital appropriation Department of Training and Workforce Development

Net cash provided by State Government

Utilised as follows:

CASH FLOWS FROM OPERATING ACTIVITIES

Payments

Employee benefits

Supplies and services

Grants and subsidies

Finance costs

Cost of Goods Sold

GST payments on purchases

Other payments

Receipts

Fee for service

Student fees and charges

Ancillary trading

Commonwealth grants and contributions

Interest received

GST receipts on sales

GST receipts from taxation authority

Sales

Other receipts

Net cash provided by/(used in) operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of non-current physical assets

Purchase of non-current physical assets

Net cash provided by/(used in) investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Finance lease repayment of principal

Net cash provided by/(used in) financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of period

CASH AND CASH EQUIVALENTS AT END OF PERIOD

33

33

The Statement of Cash Flows should be read in conjunction with the accompanying notes.

OAC3

AUDITED

5

S

84,807,799

84,807,799

(83,990,264)

(30,080,673)

(411,779)

(10,246)

(1,411,047)

(4,063,476)

(8,814,430)

24,292,625

9,772,279

1,186,662

1,406,928

979,277

1,708,399

2,141,854

1,435,844

1,420,202

(84,437,843)

182,505

(6,854,498)

(6,671,993)

(37,262)

(37,262)

(6,339,299)

18,059,537

11,720,238

Statutory Financial Statements 2010.xls 4/03/2011 1:47 PM

78,309,608

84,000

78,393,608

(75,318,410)

(26,695,078)

(467,755)

(14,236)

(1,506,922)

(3,525,771)

(7,672,889)

21,200,798

10,836,029

1,453,704

5,779,850

487,827

1,388,067

2,709,451

1,420,997

1,279,546

(68,644,792)

237,684

(6,978,540)

(6,740,856)

(179,155)

(179,155)

2,828,805

15,230,735

18,059,540

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Polytechnic WestNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010

I Australian equivalents to International Financial Reporting Standards

(a) General

The College's financial statements for the year ended 31 December 2010 have been prepared in accordance with Australian Accounting Standards.

The term 'Australian Accounting Standards' refers to Standards and Interpretations issued by the Australian Accounting Standard Board (AASB).

The College has adopted any applicable, new and revised Australian Accounting Standards from their operative dates.

(b) Early adoption of standardsThe College cannot early adopt an Australian Accounting Standard unless specifically permitted by Treasurer's Instruction (TI) 1101 'Application of

Australian Accounting Standards and Other Pronouncements'. No Australian Accounting Standards that have been issued or amended but are not yeteffective have been early adopted by the College for the annual reporting period ended 31 December 2010.

2 Summary of significant accounting policies

The following accounting policies have been adopted in the preparation of these financial statements. Unless otherwise stated, these policies are consistentwith those adopted in the previous year.

(a) General statement

The financial statements constitute a general purpose financial statement which has been prepared in accordance with the Australian Accounting Standards, the

Framework, Statements of Accounting Concepts and other authoritative pronouncements of the AASB as applied by the TIs. Several of these are modifiedby the TIs to vary application, disclosure, format and wording.

The Financial Management Act and the TIs are legiSlative provisions governing the preparation of financial statements and take precedence over the

Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the AASB.

Where modification is required and has a material or significant financial effect upon the reported results, details of that modification and the resultingfinancial effect are disclosed in the notes to the financial statements.

(b) Basis of preparationThe financial statements have been prepared on the accrual basis of accounting using the historical cost convention, except for land and buildingswhich have been measured at fair value.

The accounting policies adopted in the preparation of the financial statements have been consistently applied throughout all periods presented unlessotherwise stated.

The financial statements are presented in Australian dollars ($).

The judgements that have been made in the process of applying the College's accounting policies that have the most significant effect on the amounts

recognised in the financial statements are disclosed at note 3 'Judgements made by management in applying accounting policies'.

The key assumptions made concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that have a significant

risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next fmancial year, are disclosed at note 4 'Key sources ofestimation uncertainty'.

(c) Reporting entityThe reporting entity comprises the College and entities listed at note 41 'Related bodies'.

(d) Contributed equity

AASB Interpretation 1038 'Contributions by Owners Made to Wholly-Owned Public Sector Entities' requires transfers, other than as a result of a restructureof administrative arrangements, in the nature of equity contributions to be designated by the Government (the owner) as contributions by owners (at the timeof, or prior to, transfer) before such transfers can be recognised as equity contributions. Capital appropriations are designated as contributions

by owners per TI 955 'Contributions by Owners Made to Wholly Owned Public Sector Entities' and have been credited directly to Contributed Equity.

Transfer of net assets to/from other agencies, other than as a result of a restructure of administrative arrangements, are designated as contributionsto owners where the transfers are non-discretionary and non-reciprocal. See note 32 'Equity'.

(e) IncomeRevenue recognition

Revenue is measured at the fair value of consideration received or receivable.

The majority of operating revenue of the College represents revenue earned from student fees and charges, fee for service, ancillary services, tradingactivities and Commonwealth grants and contributions.

Sale of goods

Revenue is recognised from the sale of goods and disposal of other assets when the significant risks and rewards of ownership control transfer to thepurchaser and can be measured reliably.

Provision of servicesear e is recognised on delivery of the service to the client or by reference to the stage of completion of the transaction.

AugfruE0 gnised as the interest accrues. The effective interest method which is the rate that exactly discounts estimated future cash receipts throughthscpected e of the financial asset to the net carrying amount of the financial asset, is used where applicable.

Notes to the Financial Statements 9010 As 4101/9011 1.45 PM


Grants, donations, gifts and other non-reciprocal contributions

Revenue is recognised at fair value when the College obtains control over the assets comprising the contributions, usually upon their receipt.

Other non-reciprocal contributions that are not contributions by owners are recognised at their fair value. Contributions of services are only recognised

when a fair value can be reliably determined and the services would be purchased if not donated.

State funds

The funds received from the Department of Training and Workforce Development in respect of the delivery of services forming part of the Delivery

Performance Agreement are included in State funds, disclosed under 'Income from State Government'. They are the result of training successfully tendered for

under competitive tendering arrangements. This revenue is recognised at nominal value in the period in which the College meets the terms of the Agreement.See note 20 'Income from State Government'.

Gains

Gains may be realised or unrealised and are usually recognised on a net basis. These include gains arising on the disposal of non-current assets and somerevaluations of non-current assets.

(1) Borrowing costs

Borrowing costs for qualifying assets are capitalised net of any investment income earned on the unexpended portion of the borrowings. A qualifying asset

is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Other borrowing costs are expensed when incurred.

(g) Property, plant and equipmentCapitalisation/Expensing ofassets

Items of property, plant and equipment costing $5,000 or more are recognised as assets and the cost of utilising assets is expensed (depreciated) over their

useful lives. Where applicable in accordance with TI 1101, the capitalisation threshold has been applied to the aggregate value of a group or network ofassetswhere the cost of individual item may be below the threshold but collectively the cost of the items in the group or netework exceeds thethreshold. Items of property,plant and equipment and infrastructure costing less than $5,000 are immediately expensed direct to the Statement of Comprehensive Income (other thanwhere they form part of a group of similar items which are significant in total).

Initial recognition and measurement

All items of property, plant and equipment are initially recognised at cost. For items of property. plant and equipment acquired at no cost or for nominalcost, the cost is their fair value at the date of acquisition.

Subsequent measurement

Subsequent to initial recognition as an asset, the revaluation model is used for the measurement of land and buildings and the cost model for all

other property, plant and equipment. Land and buildings are carried at fair value less accumulated depreciation on buildings and accumulated impairment losses.All other items of property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses.

Where market-based evidence is available, the fair value of land and buildings is determined on the basis of current market buying values determined by

reference to recent market transactions. When buildings are revalued by reference to recent market transactions, the accumulated

depreciation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount

Where market-based evidence is not available, the fair value of land and buildings is determined on the basis of existing use. This normally applies wherebuildings are specialised or where land use is restricted. Fair value for existing use assets is determined by reference to the cost of replacing the remainingfuture economic benefits embodied in the asset, i.e. the depreciated replacement cost

Independent valuations of land and buildings are provided annually by the Western Australian Land Information Authority (Valuation services) and recognised with

sufficient regularity to ensure that the carrying amount does not differ materially from the asset's fair value at the end of the reporting period.

The most significant assumptions in estimating fair value are made in assessing whether to apply the existing use basis to assets and in determiningestimated useful life. Professional judgement by the valuer is required where the evidence does not provide a clear distinction between market type assetsand existing use assets. Refer to note 26 'Property, plant and equipment' for further information on revaluations.

Asset revaluation surplus

The asset revaluation surplus is used to record increments and decrements on the revaluation of non-current assets as described in note 26 'Property, plantand equipment'.

Depreciation

All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in a manner which reflects the consumptionof their future economic benefits.

Land is not depreciated. Depreciation on other assets is calculated on the straight line method over its useful life, using rates which are reviewed annually.Estimated useful lives for each class of depreciable asset are:Buildings 20 to 40 yearsMotor vehicles, caravans and trailers 1 to 33 yearsPlant, furniture and general equipment 1 to 33 yearsComputing, communications and software (a) 1 to 14 years

Works of art controlled by the College are classified as property, plant and equipment which are anticipated to have very long and indefinite useful lives.

Their service potential has not, in any material sense, been consumed during the reporting period and so no depreciation has been recognised.

(a) Software that is integral to the operation of related hardware.

OAGAUDITED

Notes to the Financial Statements 2010 xls 4/03/201 1 1.45 PM


(h) Impairment of assets

Property, plant and equipment, are tested for any indication of impairment at the end of each reporting period. Where there is an indication of impairment,the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is considered impaired and is written

down to the recoverable amount and an impairment loss is recognised. As the College is a not-for-profit entity, unless an asset has been identified

as a surplus asset, the recoverable amount is the higher of an asset's fair value less costs to sell and depreciated replacement cost.

The risk of impairment is generally limited to circumstances where an asset's depreciation is materially understated, where the replacement cost is fallingor where there is a significant change in useful life.

Each relevant class of assets is reviewed annually to verify that the accumulated depreciation/amortisation reflects the level of consumption or expirationof assets' future economic benefits and to evaluate any impairment risk from falling replacement costs or a significant change in useful life.

The recoverable amount of assets identified as surplus assets is the higher of fair value less costs to sell and the present value of future cash flowsexpected to be derived from the asset. Surplus assets carried at fair value have no risk of material impairment where fair value is determined byreferenceto market-based evidence. Where fair value is determined by reference to depreciated replacement cost, surplus assets are at risk of impainnent and the

recoverable amount is measured. Surplus assets at cost are tested for indications of impairment at the end of each reporting period.

See note 27 'Impairment of assets' for the outcome of impairment reviews and testing. See note 2(o) 'Receivables' and note 23 Receivables' forimpairment of receivables.

(1) Non-current assets (or disposal groups) classified as held for saleNon-current assets (or disposal groups) held for sale are recognised at the lower of carrying amount and fair value less costs to sell and are presentedseparately from other assets in the Statement of Financial Position. Assets classified as held for sale are not depreciated or amortised.

(I) Leases

At the commencement of the lease term, finance lease rights and obligations are recognised as assets and liabilities equal in amount to the fair value of theleased item or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease. The assets are disclosed asplant, equipment and vehicles under lease, and are depreciated over the period during which the College is expected to benefit from their use. Minimum lease

payments are apportioned between finance charge and reduction of the outstanding lease liability, according to the interest rate implicit in the lease.

(k) Financial instrumentsThe College has two categories of financial instruments:

Financial assets

cash and cash equivalents (including restricted cash and cash equivalents)receivables

Financial liabilitiespayables

borrowings- Grants and Advances (Sustainable Energy Development Office)finance leases

Initial recognition and measurement of financial instruments is at fair value. Usually the transaction cost or face value is equivalent to fair value and sub-sequent measurement is at amortised cost using the effective interest method.

The fair value of short-term receivables and payables is the transaction cost or the face value because there is no interest rate applicable and subsequentmeasurement is not required as the effect of discounting is not material.

(I) Cash and cash equivalents

For the purpose of the Statement of Cash Flows, cash and cash equivalents include restricted cash and cash equivalents. These are comprised of cash on handand short-term deposits with original maturities of three months or less that are readily convertible to a known amount of cash and which are subject toinsignificant risk of changes in value.

(m) Accrued salaries

The accrued salaries suspense account (see note 21 'Restricted cash and cash equivalents') consists of amounts paid annually into a suspense account

over a period of ten financial years to largely meet the additional cash outlay in each eleventh year when 27 pay days occur instead of the nonnal 26.No interest is received on this account.

Accrued salaries (see note 28 'Payables') represent the amount due to staff but unpaid at the end of the financial year, as the end ofthe last pay periodfor that financial year does not coincide with the end of the financial year. Accrued salaries are settled within a fortnight of the financial yearend. The Collegeconsiders the carrying amount of accrued salaries to be equivalent to its net fair value.

(n) Inventories

Inventories are measured at the lower of cost and net realisable value. Costs are assigned by the method most appropriate to each particular class ofinventory, with the majority being valued on a first in first out basis.

Inventories not held for resale are valued at cost unless they are no longer required, in which case they are valued at net realisable value.

See note 22 'Inventories'.

AUDITED

5

Notes to the Financial Statements 2010.xls 4/03/2011 1:45 PM


OAGAUDIT

5

(o) Receivables

Receivables are recognised and canied at original invoice amount less an allowance for any uncollectible amounts (impairment). The collectability of

receivables is reviewed on an ongoing basis and any receivables identified as uncollectible are written off against the allowance account. The provision foruncollectible amounts (doubtful debts) is raised when there is objective evidence that the College will not be able to collect the debts. The carrying amountis

equivalent to fair value as it is due for settlement within 30 days. See note 2(k) 'Financial instruments' and note 23 'Receivables'.

A provision for impairment of receivables is only raised if there is objective evidence of impairment.

(p) PayablesPayables are recognised at the amounts payable when the College becomes obliged to snake future payments as a result of a purchase of assets orservices. The carrying amount is equivalent to fair value, as they are generally settled within 30 days. See note 2(k) 'Financial instruments' and note 28'Payables'.

(q) BorrowingsAll loans payable are initially recognised at cost, being the fair value of the net proceeds received. Subsequent measurement is at amortised cost using theeffective interest rate method. See note 2(k) 'Financial instrwnents' and note 29 'Borrowings'.

(r) ProvisionsProvisions are liabilities of uncertain timing and/or amount and are recognised where there is a present legal. equitable or constructive obligation as a resultof a past event and when the outflow of resources embodying economic benefits is probable and a reliable estimate can be made of the amountof the

obligation. Provisions are reviewed at the end of each reporting period. See note 30 'Provisions'.

(i) Provisions - employee benefitsAll annual leave and long service leave provisions are in respect of employees' services up to the end of the reporting period.

Annual leave

The liability for annual leave expected to be settled within twelve months after the reporting period is recognised and measured atthe undiscounted amounts expected to be paid when the liabilities are settled.

Annual leave not expected to be settled within 12 months after the reporting period is recognised and measured at the present value of amounts expectedto be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

When assessing expected future payments consideration is given to expected future wage and salary levels including non-salary components such asemployer superannuation contributions, as well as the experience of employee departures and periods of service. The expected future payments

are discounted using market yields at the end of the reporting period on national government bonds with tenns to maturity that match, as closelyas possible, the estimated future cash outflows.

The provision for annual leave is classified as a current liability as the College does not have an unconditional right to the defer settlement of the liability

for at least 12 months after the reporting period.

Long set-vice leave

The liability for long service leave expected to be settled within 12 months after the reporting period is recognised and measured at the undiscounted amountsexpected to be paid when the liability is settled.

Long service leave not expected to be settled within 12 months after the reporting period is recognised and measured at the present value of amountsexpected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

When assessing expected future payments consideration is given to expected future wage and salary levels including non salary components such as employer

superannuation contributions, as well as the experience of employee departures and periods of service. The expected future payments are discounted usingmarket yields at the end of the reporting period on national government bonds with tenns to maturity that match, as closely as possible, the estimated future

cash outflows.

Unconditional long service leave provisions are classified as current liabilities as the College does not have an unconditional right to defer settlement of theliability for at least 12 months after the reporting period. Conditional long service leave provisions are classified as non-current liabilities because the

College has an unconditional right to defer the settlement of the liability until the employee has completed the requisite years of service.

Deferred Leave

The provision for deferred leave relates to Public Service employees who have entered into an agreement to self-fund an additional twelve months leave

in the fifth year of the agreement. The provision recognises the value of salary set aside for employees to be used in the fifth year. The liability is measuredon the same basis as annual leave. Deferred leave is reported as a non current provision until the fifth year.

SuperannuationThe Government Employees Superannuation Board (GESB) in accordance with legislative requirements administers public sector superannuation

arrangements in WA.

Eligible employees may contribute to the Pension Scheme, a defined benefit pension scheme now closed to new members since 1987, or the Gold State

Superannuation Scheme (GSS), a defused benefit lump sum scheme also closed to new members since 1995.

The College has no liabilities for superannuation charges under those schemes, as the liabilities for the unfunded Pension Scheme and the unfunded

GSS transfer benefits due to members who transferred from the Pension Scheme, are assumed by the Treasurer. All other GSS obligationsare funded by concurrent contributions made by the College to the GESB. The concurrently funded part of the GSS is a defined contributionscheme as these contributions extinguish all liabilities in respect of the concurrently funded GSS obligations.

Employees commencing employment prior to 16 April 2007 who were not members of either the Pension or the GSS became non-contributoryembers of the West State Superannuation (WSS) Scheme. Employees commencing employment on or after 16 April 2007 became members of the

B Super Scheme (GESBS). Both of these schemes are accumulation schemes. The College makes concurrent contributions to GESB on behalfloyees in compliance with the Commonwealth Government's Superannuation Guarantee (Administration) Act 1992. These contributions ex-Is liability for superannuation charges in respect of the WSS and GESBS.

T GESB makes all benefit payments in respect of the Pension Scheme and GSS, and is recouped from the Treasurer for the employer's share.See also note 2(s) 'Superannuation expense'.



(ii) Provisions - otherEmployment on-costs

Employment on-costs, including workers' compensation insurance, are not employee benefits and are recognised separately as expenses and liabilities

when the employment, to which they relate, has occurred. Employment on-costs are included as part of 'Other expenses' and are not included as part ofthe College's 'Employee benefits expense'. The related liability is included in 'Employment on-costs provision'. (See note 11 'Other expenses' and note 30'Provisions'.)

(s) Superannuation expense

The superannuation expense in the Statement of Comprehensive Income comprises of employer contributions paid to the GSS (concurrent contributions),the West State Superannuation Scheme (WSS), and the GESB Super Scheme (GESBS).

The GSS is a defined benefit scheme for the purposes of employees and whole-of-government reporting. However, it is a defined contribution plan

for agency purposes because the concurrent contributions (defined contributions) made by the College to GESB extinguish all of the College'sobligations to the related superannuation liability.

(t) Resources received free of charge or for nominal costResources received free of charge or for nominal cost that can be reliably measured are recognised as income and as assets or expenses. as appropriate.at fair value.

Where assets or services are received from another State Government agency, these are separately disclosed under Income from State Govenunent in theStatement of Comprehensive Income .

(u) Comparative figures

Comparative figures are, where appropriate, reclassified to be comparable with the figures presented in the current financial year.

3 Judgements made by management in applying accounting policies

The preparation of financial statements requires management to make judgements about the application of accounting policies that have a significant effect on theamounts recognised in the financial statements. The College evaluates these judgements regularly.

Operating Lease Commitments

The College has entered into a nwnber of commercial leases for buildings and motor vehicles and has determined that the lessor retains substantially all thesignificant risks and rewards incidental to ownership of the property. Accordingly, the lease has been classified as an operating lease.

4 Key sources of estimation uncertainty

The key estimates and assumptions made concerning the future, and other key sources of estimation uncertainty as at the end of the reporting period that havea significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

Student receivables under 60 days due are considered collectable and a provision is made for the full value of those which are greater.

General receivables from other government agencies are considered risk free (no allowance for doubtful debt) and all others are by individual assessment with anallowance to the full value if required.

Inventory stocks (bookshops) are ordered on a just in time basis to match current year teaching requirements. Obsolescence is considered less than 5% ofannual trading purchases and therefore no provision is made.

The College revalues its Land & Buildings every year during which time estimates of useful life are provided to give guidance on depreciation rates used inintervening years.

No provision has been made for sick leave as the college annual costs do not exceed the annual value of entitlements.

5 Disclosure of changes in accounting policy and estimates

Initial application of an Australian Accounting Standard

The College has applied the following Australian Accounting Standards effective for annual reporting periods beginning on or after 1 January 2010 thatimpacted on the College.

AASB 2008-13 - Amendments to Australian Accounting Standards arising.from AASB Interpretation 17 Distributions of Non-cash Assets to Owners(AASB 5 & AASB 110].

This Standard amends AASB 5 Non-current Assets Held for Sale and Discontinued Operations in respect of the classification, presentation and measurement of

non-current assets held for distribution to owners in their capacity as owners. This may impact on the presentation and classification of Crown land held bytheCollege where the Crown land is to be sold by the Department of Regional Development and Lands (formerly Department for Planning and Infrastructure).There is no financial impact resulting from the Standard being first applied prospectively.

CAGAUDITED



Voluntary changes in accounting policyThere have been no voluntary changes in accounting policy.

Future impact of Australian Accounting Standards not yet operativeThe College cannot early adopt an Australian Accounting Standard unless specifically permitted by T11101 'Application of Australian Accounting

Standards and Other Pronouncements'. Consequently, the College has not applied early the following Australian Accounting Standards that have beenissued and which may impact the college but are not yet effective. Where applicable, the college plans to apply these Australian Accounting Standardsfrom their application date:

Title Operative for reporting periods

AASB 2009-11 - Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108,112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 and Interpretations 10 & 12].

The amendment to AASB 7 'Financial Instruments: Disclosures' requires modification to the disclosure of categories offinancial assets. The College does not expect any financial impact when the Standard is first applied.The disclosure of categories of financial assets in the notes will change.

AASB 1053 - Application of Tiers of Australian Accounting Standards. This Standard establishes a differential financial

reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements.The Standard does not have any financial impact on the College. However it may affect disclosures in the financial statements

of the College if the reduced disclosure requirements apply. DTF has not yet determined the application or the potentialimpact of the new Standard for agencies.

AASB 2010-2 - Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements

This Standard makes amendments to many Australian Accounting Standards, including Interpretations, to introduce reduced

disclosure requirements into these pronouncements for application by certain types of entities.

The Standard is not expected to have any financial impact on the College. However this Standard may reduce some notedisclosures in the financial statements of the College. DTF has not yet determined the application or the potential impactof the amendments to these Standards for agencies.

Changes in Accounting EstimatesNo change has occurred in accounting estimates.

r(Of-kG

1,UDITED

5


1-Jan-13

1-Jul-13

1-Jul-13


2010 2009

6 Employee benefits expenseWages and salaries (a) 86,274,227 79,334,536Superannuation - defined contribution plans (b) 7,895,122 6,847,880

94,169,350 86,182,416

(a) Includes the value of the fringe benefit to the employee plus the fringe benefits tax component, leave entitlements including superannuationcontribution component and redundancy payments.

(b) Defined contribution plans include West State, and Gold State and GESB Super Scheme (contributions paid).

Employment on-costs such as workers' compensation insurance are included at note 11 'Other expenses'. The employment on-costsliability is included at note 30 Provisions'.

7 Supplies and servicesConsumables and minor equipment 7,181,175 6,567,423Communication expenses 1,365,039 961,925Utilities expenses 2,117,453 1,966,836Consultancies and contracted services 9,493,483 8,564,483Minor works 7,034,869 5,005,524Repairs and maintenance 603,792 521,631Operating lease and hire charges 1,621,626 790,132Travel and passenger transport 420,160 310,492Advertising and public relations 495,322 426,846Supplies and services - other 1,279,774 1,230,509

31,612,692 26,345,800

8 Depreciation

Buildings 3,378,469 3,750,068Motor vehicles, caravans and trailers 84,763 100,275Plant, furniture and general equipment 1,339,792 1,097,704Computers and communication network 354,216 149,297

5,157,241 5,097,344

9 Finance costsFinance lease finance charges 10,246 14,236Finance costs expensed 10,246 14,236

10 Grants and subsidiesRecurrentAdult and community education organisations 364Payments to non-TAFE providers for VET service delivery 5,938 13,040Apprentices and trainees (travel, accommodation and other off-the-job assistance) 388,977 435,716Other 16,500 19,000

411,779 467,755

11 Other expensesBuilding maintenance 2,015,858 1,904,155Doubtful debts expense 734,987 640,270Employment on-costs (a) 6,452,383 5,359,551Donations 4,380 600Student prizes and awards 58,533 29,567Losses and write-offs 154,683 21,717Other (b) 339,890 376,105

9,760,715 8,331,965(a) Includes workers' compensation insurance and other employment on-costs. The on-costs liability associated

with the recognition of annual and long service leave liability is included at note 30 Provisions'. Superannuationcontributions accrued as part of the provision for leave are employee benefits and are not included in employmenton-costs.

(b) Includes student and staff activities, refund of revenue received in prior years and impairment losses.

12 Fee for serviceFee for service - general 2,864,436 2,787,497Fee for service - Department of Training and Workforce Development 218,808 221,896Fee for service - Government (other than Department of Training and Workforce Development) 12,956,541 9,742,481Adult community education fees 821,084 907,914International division fees 8,865,837 7,972,668Fee for service - other 395,962 402,301

26,122,668 22,034,758

13 Student fees and chargesTuition fees 7,265,815 7,425,970Resource fees 2,969,366 2,883,502Other college fees 273,393 294,464

10,508,573 10,603,936

14 Ancillary tradingLive works (not a trading activity) 951,570 1,027,091Contracting and consulting 55,605 83,026Other ancillary revenue 179,486 343,587

1,186,662 1,453,704

AUDFED


Polytechnic West

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010

2010 2009$ S

15 Trading profitl(loss)

Bookshop:Sales 1,435,844 1,420,997Cost of sales:

Opening inventory (565,312) (499,734)Purchases (1,357,284) (1,461,233)

(1,922,597) (1,960,967)Closing inventory 544,202 565,312Cost of goods sold (1,378,395) (1,395,655)Trading profit/(loss) - Bookshop 57,449 25,342

See note 2(n) 'Inventories' and note 22 'Inventories'.

16 Commonwealth grants and contributionsCommonwealth capital grants and contributions 1,890,700 5,779,850

These grants include Training Infrastructure and Investment for Tomorrow S1.791V1 and Better Tafe Facilities $0.1M.

17 Interest revenueInterest revenue

Interest from Commonwealth Bank trading account, short term deposits and deposits with the WA Treasury Corporation.

1,890,700 5,779,850

956,531 564,504956,531 564,504

18 Other revenueRental and facilities fees 600.240 498,795Other direct grants and subsidy revenue 33,500Copyright and royalties revenue 46 63,350Sponsorship and donations revenue 139,748 23,472Miscellaneous revenue 721,432 669,992

1,461,466 1,289,108

19 Net gaingloss) on disposal of non-current assets

Costs of disposal of non-current assets

Motor vehicles, caravans and trailers (69,739) (151,433)Plant, furniture and general equipment (93,841) (125,188)Computers and communication network (2,337) (858)Total cost of disposal of non-current assets (165,917) (277,479)

Proceeds from disposal of non-current assetsMotor vehicles, caravans and trailers 77,538 141,231Plant, furniture and general equipment 39,057 88,642Computers and communication network 65,910 7,811Total proceeds from disposal of non-current assets 182,505 237,684

Net gaini(loss)

20 Income from State Government

16,588 (39,795)

Appropriation received during the year

Service appropriation (a) (State funds received from Department of Training and Workforce Development)*Delivery and Performance Agreement (DPA) 79,798,607 76,351,013Superannuation 7,895,122 6,847,880Other recurrent funds 4,878,925 2,910,347Capital works transferred 170,585 69,528Total State funds 92,743,239 86,178,769

Resources received free of charge determined on the basis of the following estimates provided by aeencies_NiDepartment of Training and Workforce Development- Corporate systems support 1,153,463 1,040,241- Marketing and publications 236,106 236,756- Human resources, and industrial relations support 28,842 68,972- Other 61.670Total resources received free of charge 1,418,411 1,407,639

Total income from State Government 94,161,651 87,586,408

(a) Service appropriations are accrual amounts reflecting the net cost of services delivered. The appropriation revenue comprises a cash component anda receivable (asset). The receivable (holding account) comprises the depreciation expense for the year and any agreed increase in leave liability during the year.

(b) Where assets or services have been received free of charge or for nominal cost, the College recognises revenues equivalent to the fair value ofthe assetsand/or the fair value of those services that can be reliably measured and which would have been purchased if they were not donated, and those fair values shallbe recognised as assets or expenses, as applicable. Where the contribution of assets or services are in the nature of contributions by owners, the Collegemakes an adjustment direct to equity.

21 Restricted cash and cash equivalents

Allocation of cash for future commitment of 27th pay 1,611,604 1,268,709Carryover- Capital Works Grants received from DTWD. 2,138,000 5,383,222

3,749,604 6,651,931

22 Inventories

Inventories held for resale:Bookshop (at cost) 533,826 565,312Other (at cost) 81,247 23,972

See a Atien ries' and note 15 'Trading profit/(loss)'.

AUDITED

5

615,073 589,284

Notes to the Financial Statements 2010.xls 4/03/2011 1:42PM


2010 2009

23 Receivables

CurrentReceivables - trade 4,995.497 2,494,325Receivables - students 1,999,256 1,523,316Receivables - other 56,312 721,533Accrued income 1,436,849 3,471,733Allowance for impairment of receivables (1,816,609) (1,588,451)GST receivable 288,946 209,885

6,960,251 6,832,342Total current 6,960,251 6,832,342

Reconciliation of changes in the allowance for impairment of receivables:Balance at start of year (1,588,451) (1,344,171)Doubtful debts expense recognised in the Statement of Comprehensive Income (734,987) (640,270)Amount written off during the year 506,829 395,990Balance at end of year (1,816,609) (1,588,451)

The College does not hold any collateral as security or other credit enhancements relating to receivables.See also note 2(o) 'Receivables' and note 38 'Financial instruments'.

24 Other assets

urrentPrepayments 792.333 1,080,684Total current 792,333 1,080,684

25 Non-current assets classified as held for sale

Opening balanceMotor vehicles, caravans and trailers 28,649

28,649Less assets sold (a)Motor vehicles, caravans and trailers 28,649

Closing balance28,649

Motor vehicles, caravans and trailers

(a) See note 19 'Net gain/(loss) on disposal of non-current assets'.

26 Property, plant and equipment

Land

At fair value (a) 55,370,000 54,230,000

Buildings55,370,000 54,230,000

130,868,774 134,426,111At fair value (a)Accumulated depreciation (147,419) (126,516)

130,721,355 134,299,596Buildings under constructionConstruction costs 5,252,428 1,479,220

Motor vehicles, caravans and trailers5,252,428 1,479,220

At cost 916,045 890,290Accumulated depreciation (454,553) (452,650)

461,491 437,640Plant, furniture and general equipmentAt cost 11,825,841 10,132,462Accumulated depreciation (2,998,420) (1,919,155)

8,827,422 8,213,308

Leased plant, furniture and general equipment 808,755 808,755Accumulated depreciation (808,755) (772,194)

36,561Computer equipment. communication networkAt cost 3,128,113 2,347,789Accumulated depreciation (2,082,464) (1,733,647)

Works of art1,045,650 614,142

At cost 18,000 18,00018,000 18,000

201,696,346 199,328,466

AU D 1TE D

Notes to the Financial Statements 2011) )(Is 4/02/2011 1.42 PM


2010 2009$ $

(a) Freehold land and buildings were revalued as at 1st July 2010 by the Western Australian Land Information Authority(Valuation Services). The valuations were performed during the year ended December 2010 and recognised at December 2010. The fair valueof all land and buildings was determined by reference to market values. See note 2(g) Property, plant and equipment'.

Reconciliations of the carrying amounts of property, plant and equipment at the beginning and end of the reportingperiod are set out below.

2010Land

$

Buildings$

CapitalWorks inProgress

$

Motorvehicles,

caravans andtrailers

$

Plant,furniture and

generalequipment

S

Computerequipment,

communicationnetwork

$

Works of art$

Total$

Carrying amount at start of year 54,230,000 134,299,596 1,479,220 437,640 8,249,869 614,142 18,000 199,328,466Additions 114,119 5,063,779 175,433 1,578,622 785,724 7,717,677Transfers to/from Work in Progress 711,937 (1,290,571) 578,634 -

Transfers (i) 5,442,367 - - 5,442,367Disposals (1,749) (66,819) (239,911) (308,479)Revaluation increments/ (decrements) 1,140.000 (6,466,445) (5,326,445)Depreciation expense (3,378,469) - (84,763) (1,339,792) (354,216) (5,157,241)Carrying amount at end of year 55,370,000 130,721,356 5,252,428 461,491 8,827,422 1,045,650 18,000 201,696,346

(i) Assets transferred to the College from the Department of Training and Workforce Development.

Motor Plant, ComputerCapital vehicles, furniture and equipment,

Works in caravans and general communicationLand Buildings Progress trailers equipment network Works of art Total

2009 S S $ $ $ $ $ $Carrying amount at start of year 54,230,000 148,950,900 599,596 632,654 5,523,068 289,629 18,000 210,243,847Additions 1,617,862 879,624 56,694 3,949,692 474,668 6,978,540Disposals - (151,433) (125,188) (858) (277,479)Revaluation increments/(decrements) (12,519,098) (12,519,098)Depreciation expense - (3,750,068) (100,275) (1,097,704) (149.297) (5,097,344)Carrying amount at end of year 54,230,000 134,299,596 1,479,220 437,640 8,249,868 614,142 18,000 199,328,466

27 Impairment of assetsThere were no indications of impairment of property plant and equipment as at 31 December 2010.

The College held no goodwill or intangible assets with indefinite useful lifes during the reporting period and at the endof the reporting period there were no intangible assets not yet available for use.

All surplus assets as at 31 December 2010 have either been classified as assets held for sale or written off.

28 Payables

CurrentTrade payables 152,776 46,366Accrued expenses 1,147,178 1,123,588Accrued salaries and related costs 1,597,948 1,239,446Total current 2,897,902 2,409,401

See also note 2(p) 'Payables' and note 38 'Financial Instruments'.

29 Borrowings

CurrentFinance lease liabilities (secured) (a) 37,262Total current

(a) Lease liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of default.

37,262

Assets pledged as securityThe carrying amounts of non-current assets pledged as security are:Leased plant, furniture and general equipment 36,561

36,561

(r, ^ (--.

AU DITE D

5

NntPc to tho Financial Statpmpntc 9n1n ylc 61/111/9(111 1-d7 PAA


2010 2009

30 Provisions

CurrentEmployee benefits provisionAnnual leave (a) 3,943,549 3,289,268Long service leave (b) 8,835,118 8,012,311Salary deferment 75,400 85,310

12,854,067 11,386,889Other provisionsEmployment on-costs (c) 854,547 716,584

Total current 13,708,614 12,103,473

Non-currentEmployee benefits provisionLong service leave (b) 3,537,637 3,141,317Salary deferment 150,657 216,069

3,688,293 3,357,386Other provisionsEmployment on-costs (c) 242,210 203,905

Total non-current

(a) Annual leave liabilities have been classified as current as there is no unconditional right to defer settlementfor at least 12 months after the reporting period. Assessments indicate that actual settlement of the liabilitiesis expected to occur as follows:

3,930,503 3,561,291

Within 12 months of the end of the reporting period 3,258,985 2,598,522More than 12 months after the end of the reporting period 684,564 690,746

(b) Long service leave liabilities have been classified as current where there is no unconditional right to defersettlement for at least 12 months after the end of the reporting period. Assessments indicate that actual settlementof the liabilities will occur as follows:

3,943,549 3,289,268

Within 12 months of the end of the reporting period 1,448,530 3,948,067More than 12 months after the end of the reporting period 10,924,225 7,205,561

(c) The settlement of annual and long service leave liabilities gives rise to the payment of employment on-costsincluding workers' compensation insurance. The provision is the present value of expected future payments. Theassociated expense, apart from the unwinding of the discount (finance cost), is disclosed in note 11 'Other expenses'.

12,372,755 11,153,628

Movements in other provisionsMovements in each class of provisions during the financial year, other than employee benefits, are set out below.

Employment on-cost provisionCarrying amount at start of year 920,489 626,112Additional provisions recognised 176.268 294,377Carrying amount at end of year 1,096,757 920,489

31 Other liabilities

cwentIncome received in advance (a) 810,711 1,978,365Grants and advances 434,475 644,390Grants and advances - Fast Track Brokerage 244,317Grants and advances - Transforming the Trades 148,107Grants and advances - Sustainable Energy development Office (SEDO) 23,222Money/deposits held in trust 420,422 465,979Other 32,690Total current liabilities 1,665,608 3,537,070

Non-currentOther 32,783 49.175Total non-current liabilities

(a) Income received in advance comprises:

32,783 49,175

Fee for service 524,166 1,795,099Student fees and charges 286,545 183,266

810,711 1,978,365

CAC-:\\AUDITED

Nr,tPc tr, thp Finanrial tatpmpnt, 7i11n vie 41112/7f111 1 ,(19


2010 2009

32 EquityEquity represents the residual interest in the net assets of the College. The Government holds the equity interestin the net assets of the College. The Government holds the equity interest in the College on behalf of the community.The asset revaluation surplus represents that portion of equity resulting from the revaluation of non-current assets.

Contributed equityBalance at start of period 60,150,003 60,066,003

Contributions by ownersCapital appropriation (a) 5,442,367Transfer of net assets from other agencies (b)Transportables from West Coast Institute of Training 54.000Total contributions by owners 5,442,367 84,000

Balance at end of period 65,592,370 60,150,003

(a) Treasurer's instruction TI 955 'Contributions by Owners Made to Wholly Owned Public Sector Entities' designates Capital Appropriations as contributions by ownersin accordance with AASB. Interpretation 1038 'Contributions by Owners Made to Wholly-Owned Public Sector Entities'.

(b)AASB 1004 'Contributions', requires transfers of net assets as a result of a restructure of administrative arrangements are to be accounted for as contributionsby owners and distributions to owners.Where activities are transferred from one agency to another agency as a result of a restructure of administrativearrangements, AASB 1004 (paragraph 57) requires the transferee agency to disclose the expenses and income attributable to the transferred activities forthe reporting period, showing separately those expenses and income recognised by the transferor agency during the reporting period. Furthermore, AASB 1004(paragraph 58) requires disclosures by class for each material transfer of assets and liabilities in relation to a restructure of administrative arrangements,together with the name of the counterparty transferor/transferee agency. In respect of transfers that are individually immaterial, the assets and liabilitiesare to be disclosed on an aggregate basis.

TI 955 designates non-discretionary and non-reciprocal transfers of net assets between state government agencies as contributions by owners in accordancewith AASB Interpretation 1038, where the transferee agency accounts for a non-discretionary and non-reciprocal transfer of net assets asa contribution by ownersand the transferor agency accounts for the transfer as a distribution to owners.

ReservesAsset revaluation surplusBalance at start of year 129,579,920 142,099,019Net revaluation increments/(decrements)Land 1,140,000Buildings (6,466,445) (12,519,098)Balance at end of year 124,253,475 129,579,920

Accumulated surplus /(deficit)Balance at start of year 14,462,720 11,604,422Result for the period (4359,734) 2,858,298Balance at end of year 9,702,986 14,462,720

01-kr

AUDITED

Notes to the Financial Statementc 2n1 n vis Amon 1 1 1 d7 PAA


2010

33 Notes to the Statement of Cash Flows

2009

Reconciliation of cash

Cash at the end of the financial year. as shown in the Statement of Cash Flows is reconciled to the related items inthe Statement of Financial Position as follows:

Cash on hand 27,226 27,298Cash advances 197 5,118Cash at bank 1,117,866 1,658,412Short term deposits 6,825,346 9,716,779

7,970,635 11,407,606Restricted cash and cash equivalents (refer to note 21 Restricted cash and cash equivalents') 3,749,604 6,651,931

11,720,239 18,059,537

Reconciliation of net cost of services to net cash flows provided by /(used in) operating activities

Net cost of services (98,921,385) (84,728,109)

Non-cash items:Depreciation 5,157,241 5,097,344Doubtful debts expense 734,987 640,270Superannuation expense 7,895,122 6,847,880Resources received free of charge 1,418,411 1,407,639Net (gain)/loss on sale of property, plant and equipment (16,588) 39,795Write down of non-current assets classified as held for saleLosses and write-offs (excludes cash shortages/thefts of money) 6,863 21,717

(Increase) /decrease in assets:Current receivables (c) (1,358,932) (4,406,713)Current inventories (32,652) (89,550)Other current assets 288,351 (268,639)Increase/(decrease) in liabilitiesCurrent payables (c) 488,501 78,317Current provisions 1,605,141 5,297,912Other current liabilities (1,858,894) 1,708,559Non-current provisions 369,213 (883,637)Other non-current liabilities (9,562)

Net GST receipts/(payments) (a) (2,355,077) 571.747Change in GST in receivables/payables (b) 2,141,854 30,238

Net cash provided by/(used in) operating activities (84,437,843) (68,644,792)

(a) This is the net GST paid/received, i.e. cash transactions(b) This reverses out the GST in receivables and payables(c) Note that the Australian Taxation Office (ATO) receivable/payable in respect of GST and the receivable/payable

in respect of the sale/purchase of non-current assets are not included as they are not reconciling items.

At the end of the reporting period, the College had fully drawn on all financing facilities, details of which are disclosed in the financial statements .

34 Commitments

Capital expenditure commitments

Capital expenditure commitments, being contracted capital expenditure additional to the amounts reported in thefinancial statements, are payable as follows:Within I year 1,526,463 2,560,214

1,526,463 2,560,214Lease commitments

Commitments in relation to leases contracted for at the end of the reporting period but not recognised in thefinancial statements, are payable as follows:Within I year 375,967 334,867Later than 1 year and not later than 5 years 245,521 174.343

621,488 509,210Representing:Non-cancellable operating leases 621,488 509,210

621,488 509,210Finance lease commitments

Minimum lease payment commitments in relation to finance leases are payable as follows:Within 1 year 37,262Minimum finance lease payments 37.262Present value of finance lease liabilities 37,262

Included in the financial statements as:Current borrowings(note 29) 37,262

37,262Non-cancellable operating lease commitmentsCommitments for minimum lease payments are payable as follows:Within 1 year 375,967 334,867Later than 1 year and not later than 5 years 245,521 174,343

621,488 509,210These commitments are all inclusive of GST.

Notes to the Financial Statements 2010.x1s 4/03/2011 1:42 PM


2010 2009

35 Contingent liabilities and contingent assetsThe College has no contingent liabilities or contingent assets.

36 Events occurring after the reporting periodThe College has no events occurring after the reporting period.

37 Explanatory statement

Significant variations between estimates and actual results for income and expense are shown below. Significantvariations are considered to be those greater than 10% or $250,000.

Significant variances between estimated and actual result for the financial year 20102010

Estimate$

2010Actual

$Variance

$Employee Benefits 86.439,919 94,169,350 7,729,431Finance Costs 10,246 10,246Supplies & Services 29,794,974 31,612,692 1,817,718Other Expenses 4,006,944 9,760,715 5,753,771Fee For Service (24,783,264) (26,122,668) (1,339,404)Student Fees & Charges (9,076,077) (10,508,573) (1,432,496)AncillaryTrading (1,977,443) (1,186,662) 790,781Sales (1,520,000) (1,435,844) 84,156Commonwealth Grants & Contributions (2,089,150) (1,890,700) 198,450Other Revenue (344,647) (1,461,466) (1,116,819)Income From State Government (80,832,577) (92,743,239) (11,910,662)

Employee Benefits $ 7,729,431

The increase in employee expenses is largely due to increase in delivery of 326,385 SCH ; increase in salaries for fee for service programs includingAMES and International overseas students; increase in the superannuation expense ; Increase leave entitlement expense , and pay increases for lecturing and GOSAC staff.

Finance Costs $ 10,246No estimates provided for borrowing cost expense as it was expected that the lease arrangement for photocopiers would have been finalised

Supplies & Services $ 1,817,718

Consumables for delivery and other activities higher than estimates due to prices increase more than CPI; increase in desktop PC's to increase access to computersfor staffwhich increased data communication expense; increase in minor equipment, minor works and repairs and maintenance over estimates; electricity and water expense higherthan estimates due to increased tarrifs; contracted services such as cleaning, rubbish collection and child care services for AMES program more than estimates.

Other Expenses $ 5,753,771

Doubtful debts expense is higher than estimates; repairs and maintenance for building is higher due to aging buildings; increased employee on costs for payroll tax andworkers compensation due to delivery of additional student cirriculum hours and other miscellaneous expense higher than budget due to increased delivery.Increase in expenditure for student awards and prizes and increase in wite off loss of college assets.

Fee For Service -$ 1,339,404

Increase in international overseas students was higher than estimates especially in the hospitality and baking academy; and Community Services areas; the AMESprogram exceeded original estimates as did the ACE Community Services program. The General Fee for Services was down on estimates but this was offset byoverachievement in the other FFS programs.

Student Fees & Charges -$ 1,432,496Student fees and charges are higher due to increased enrolments and CPI movement.

AncillaryTrading $ 790,781Estimates for live works appear to have been set to high and were not achievable.

Sales $ 84,156Variance due to reduction in sales.

Commonwealth Grants & Contributiot $ 198,450Received slightly less than original estimates

Other Revenue -$ 1,116,819Increase in parking fees as all staff and students now pay for parking; canteen and vending machine revenue return more than estimates;Insurance and overpaid salaries recoups were more than estimates; Donations and scholarships exceeded targets and reimbursement fromExecutive Vehicle Scheme more than budgeted

Income From State Government -$ 11,910,662

State funding increased due to delivery of additional 326,385 Sal: also increase in state funding to accommodate lecturing and GOSAC staff salary increasesalso an increase Community Service Obligations such as an allocation for Governing Council members sitting fees, course fee reimbursement and an increase inallocation to support specific skills shortages lecturers salaries; Increase in superannuation ; Increase in other grants Other grants for capital grantfrom ETI ,and other capital grants not in original budget.

AUDITED

5

Notes to the Financial Statements 201 n yls 4/M/2011 1 .42 PM


2010 2009

Significant variances between actual results for 2010 and 20092010

$

2009$

Variance$

Employee Benefits 94,169,350 86,182,416 7,986,934Supplies & Services 31,612,692 26,345,800 5,266,892Grants & Subsidies 411,779 467,755 (55,976)Trading Profit/Loss 57,449 24,342 33,107Other Expenses 9,760,715 8,331,965 1,428.750Fee For Service (26,122,668) (22,034,758) (4,087,910)Ancillary Trading (1,186,662) (1,453,704) 267,042Interest Revenue (956,531) (564,504) (392,027)Commonwealth Grants & Contributions (1,890,700) (5,779,850) 3,889,150Other Revenue (1,461,466) (1,289,108) (172,358)Income From State Government (92,743,239) (86,178,769) (6,564,470)

Employee Benefits $ 7,986,934The increase in employee expenses is mainly due to an increase in delivery of Adult and Migration Education Services (AMES) and an increase in InternationalOverseas Student delivery and other Fee For Service programs. In addition pay increases including a structural adjustment and pay increase for lecturers 4%and 3% for GOSAC staff and additional superannuation expense.

Supplies & Services $ 5,266,892The increases are mainly in the areas of consumables and materials for delivery due to increase in prices, minor equipment and computers under $5,000and contract services for professional services expended by KT studio and others. Capital works and minor works expenses have continued to accommodateOSH requirements and other college upgrades. Operating lease for Vehicles and buildings have also increased. Utilities costs have also increased due to increased tariffs from Government.

Grants & Subsidies -$ 55,976Apprentice Travel claims has significantly reduced from previous year.

Trading Profit/Loss $ 33,107Reduction of stock on hand has contributed to trading profit.

Other Expenses $ 1,428,750

Increase in building maintenance expense due to aging buildings, increase in employment on costs mainly as result of increase in payroll tax and workers compensation, increasein loss on sale of assets and increase in insurance premiums and other expenses. Doubtful debts expense also increased over 2009 expense.

Fee For Service -$ 4,087,910The AMES program and other commonwealth government programs delivered an additional $3.2m, and the International overseas student program delivered an additional$0.9m for the agency, also a small increase in Fee for Service general.

Ancilliary Trading $ 267,042Liveworks down in hospitality, meat, bakery, automotive and CAD/CAM over 2009 activity.

Interest Revenue -$ 392,027The amount of funds in investments was increased due to college receiving capital works monies andthe rising interest rates in 2010 has impacted in the interest revenue received.

Commonwealth Grants & Contnbutiol $ 3,889,150

One off capital grants funding for Training Infrastructure Investment for Tomorrow project $3.880M and Better TAFE facilities project $1.9M have not been continued in 2010.

Other Revenue -$ 172,358Incease in rental of facilities and also other college fees including parking also increase in sponsorship and donations. Also increase in canteen and vending machinerevenueand salary overpayment recoups and general revenue.

Income From State Government -$ 6,564,470State funds generated from Delivery and Performance Agreement increased due to salary increases, CPI increase and increases in delivery, superannuation washigher than last year due to additional AMES and other staff growth for increased delivery in government and commercial training. Also increase in capital andother grants to the college.

AUDITED

5



2010 2009

38 Financial instruments

(a) Financial risk management objectives and policiesApproximately 67% of the Colleges funding is under an agreement with the State Government for delivery of training with an additional 24% of otherrevenue from students associated with this delivery. The College therefore has a high dependance on government for the continued delivery oftraining services. The level of service provided to Government is negotiated annually with modification for growth or reduction to areas forming partof the overall strategic plan of the College.

Financial instruments held by the College are cash and cash equivalents, restricted cash and cash equivalents,finance leases, receivables and payables. The College has limited exposure to financialrisks. The College's overall risk management program focus on managing the risk identified below:

Credit riskThe College predominately trades directly with students as its primary source of income (sales), after excluding its delivery and agreement withGovernment. In the interest of community service students are not assessed at enrolment as to their credit risk to the College.

Receivables are unsecured requiring prompt follow up with reminder letters to minimise credit risk and subsequent referral to a debt collection agency.

Liquidity riskThe College has appropriate procedures to manage cash flows including drawdowns of appropriations bymonitoring forecast cash flows to ensure that sufficient funds are available to meet its commitments.

Interest rate riskInvestment of cash and cash equivalents are held in accordance with Treasury approval to operate bank accounts (predominately AAA rated).Maximum benefit is achieved through investing in the short term money market facilities offered through the College bank, plus acceptable interest rates on the College trading account.

(b) Categories of financial instrumentsIn addition to cash ,the carrying amounts of each of the following categories of financial assets andfinancial liabilities at the end of the reporting period are as follows: 2010 2009

S

Financial AssetsCash and cash equivalent 7,970,635 1 1,407,606Restricted cash and cash equivalent 3,749,604 6,651,931Receivables (a) 6,671,305 6,622,457Other Current Assets 792,333 1,080,684

Financial LiabilitiesPayables(a) The amount of loans and receivables excludes GST recoverable from the ATO (statutory receivable).

2,897,902 2,409,401

(c) Financial instrument disclosuresCredit risk and interest rate exposures

The following table discloses the College's maximum exposure to credit risk, interest rate exposure and the ageing analysis of financial assets. The College's maximumexposure to credit risk at the end of the reporting period is the carrying amount of financial assets as shown below.The table discloses the ageingof fmancial asssetsthat are past due but not impaired and impaired financial assets. The table is based on information provided to senior management of the College.

The College does not hold any collateral as security or other credit enhancements relating to the financial assets it holds.

The College does not hold any financial assets that had to have their terms renegotiated that would have otherwise resulted in them being past dueor impaired.

WeightedAverageEffective

Interest Rate

CarryingAmount

Interest rate exposure and ageing analysisInterest rate exposure

of financial assets

0 - 3 MonthsPast due but not impaired

2-5 Years Morethan 5years

ImpairedFinancial

Assets

Fixed Variable Non-InterestInterest Rate Interest Rate Bearing

3 - 12 Months 1-2 Years

°A, $ 000's $ 000's $ 000's S 000's S 000's S 000's S 000's S 000's S 000's 5 000'sFinancial Assets2010

Cash and cash equivalent 4.93% 7,970 7,943 27Restricted cash and cash equivalent 4.93% 3,749 3,749Receivables (a) 6,671 6.671 6.431 195 36 9 1.760

18,390 11,692 6,698 6,431 I 195 36 9 1,7602009

Cash and cash equivalent 3.45% 11,407 11,374 33Restricted cash and cash equivalent 3.68% 6,651 6,651Receivables (a) 6,622 6,622 6,534 I I 76 1.588

24,680 18,025 6,655 6,534 11 76 1 1,588

(a) The amount of receivables excludes the GST receivables from the ATO (statutory receivable).

r.

OAGAUDITED



2010 2009

Liquidity risk

The following table details the contractual maturity for fincancial liabilities. The contractual maturity amounts are representative of the undiscounted amounts as at the endof the reporting period. The table includes interest and principal cash flows. An adjustment has been made where material.

Financial Liabilities2010

Payables

2009Payables

Interest rate exposure and maturity analysis of financial liabilitiesInterest rate exposure maturity date

Canying FixedAmount Interest Rate

$ $ 000's

Variable Non - Interest Total NominalInterest Rate Bearing Amount

$ 000's S 000's S 000's

0 - 3 Months 3 - 12 Months 1-2 Years 2-5 Years More than 5years

S 000's S 000's S 000's S 000's S 000's

2,897 - - 2,897 - - -2.897 -

2,897 - - 2,897 - 2,897 - -

2,409 . 2,409 2.409 _

2,409 - - 2,409 - - - -2.409 -

Interest rate sensitivity analysisThe following table represents a summary of the interest rate sensitivity of the College's financial assets and liabilitiesat the end of the reporting period on the surplus for the period and equity for a I% change in interest rates. It is assumed thatthe change in interest rates is held constant throughout the reporting period.

2010

100 Basis Points + 100 Basis PointsCanyingamount Surplus Equity Surplus Equity

S S S S S

Financial AssetsCash and cash equivalents 7,970,635 (79,706) (79,706) 79.706 79.706Restricted cash and cash equivalent 3,749,604 (37,496) (37,496) 37,496 37.496

Total Increase /(Decrease) 11,720,239 (117,202) (117,202) 117,202 117,202

2009

- 100 Basis Points + 100 Basis PointsCarryingamount Surplus Equity Surplus Equity

S S S S S

Financial AssetsCash and cash equivalents 11,407,606 (114,076) (114,076) 114,076 114,076Restricted cash and cash equivalent 6,651,931 (66,519) (66,519) 66,519 66.519

Total Increase/(Decrease) 18,059,537 (180,595) (180,595) 180,595 180,595

Fair values

All financial assets and liabilities recognised in the Statement of Financial Position, whether they are carried at cost or fair value, arerecognised at amounts that represent a reasonable approximation of fair value unless otherwise stated in the applicable notes.

ic r'N

(b,UE.:11TED



39 Remuneration of members of the College and senior officers

Remuneration of members of the College CouncilThe number of members of the College Council whose total of fees, salaries, superannuation, non-monetarybenefits and other benefits for the financial year, fall within the following bands are:

2010 2009$ $

$ 2010 2009$0 - $10,000 12 12

$210,001 - $220,000 I 1

The total remuneration of the members of the College is: 232,399 244,634

Total remuneration includes the superannuation expense incurred by the College in respect of members of the College.

Remuneration of senior officersThe number of senior officers other than senior officers reported as members of the College, whose total of fees,salaries, superannuation, non-monetary benefits and other benefits for the financial year, fall within the followingbands are:

2010 2009

$1 - $10,000 *2

$10,001 - $20,000 *4$20,001 - $30,000 2

$30,001 - $40,000 *I

$50,001 - $60,000$70,001 - $80,000$80,001 - $90,000

$120,001 - $130,000 1

$130,001 - $140,000 3

$140,001 - $150,000$150,001 - $160,001 3

S

The total remuneration of senior officers is: 1,115,186 916,408

* Includes senior officers where periods of service are less than twelve months.

The total remuneration includes the superannuation expense incurred by the College in respect of senior officers otherthan senior officers reported as members of the College.

No senior officers are members of the Pension Scheme.

40 Remuneration of auditorRemuneration payable to the Auditor General in respect to the audit for the current financial year is as follows:

2010 2009$

Auditing the accounts, fmancial statements and performance indicators 125,000 120.000

The expense is included in note 11 'Other expenses'.

41 Related bodiesThe College has no related bodies.

42 Affiliated bodiesThe College has no affiliated bodies.

43 Supplementary financial information2010 2009

Write-OffsBad debts 506,828 395.980Inventory 6,573 21,367

Losses through theft. defaults and other causes

Losses of public and other moneys and public and other property through theft, default or otherwise 290 349

44 Schedule of income and expenditure by service

The College provides only one service (as defined by Treasurer's Instruction 1101 (9) and that is VocationalEducation and Training Delivery.

OA GAUDITED


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