2 March 2018 TOWNSVILLE GRAMMAR SCHOOL Opening doors since 1888 The Honourable Grace Grace MP, Minister for Education and Minister for Industrial Relations PO Box 15033 CITY EAST Q 4002 Dear Minister I am pleased to present the Annual Report 2017 for Townsville Grammar School. I certify that this Annual Report complies with: • The prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009, and • The detailed requirements set out in the Annual re port requirements f or Queensland Government agencies. A checklist outlining the annual reporting requirements can be accessed at www.tgs.qld.edu.au. Yours sincerely Secretary to the Board of Trustees OfTownsville Grammar School Years 7-12 North Ward 45 Paxton Street NORTH WARD QLD 481 0 Pre-Prep-Year 6 Annandale 1 Brazier Drive ANNAN DALE QLD 4814 Pre-Kindy-Early Primary North Sh ore 70-90 North Shore Blvd NORTH SHORE QLD 4818 www.tgs.qld.edu.au An Internat ional Baccalaureate World School
Transcript
2 March 2018
TOWNSVILLE GRAMMAR SCHOOL Opening doors since 1888
The Honourable Grace Grace MP, Minister for Education and Minister for Industrial Relations PO Box 15033 CITY EAST Q 4002
Dear Minister
I am pleased to present the Annual Report 2017 for Townsville Grammar School.
I certify that this Annual Report complies with: • The prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009, and • The detailed requirements set out in the Annual report requirements f or Queensland Government agencies.
A checklist outlining the annual reporting requirements can be accessed at www.tgs.qld.edu.au.
Yours sincerely
~:::z Secretary to the Board of Trustees OfTownsville Grammar School
Years 7-12 North Ward 45 Paxton Street NORTH WARD QLD 481 0
Pre-Prep-Year 6 Annandale 1 Brazier Drive ANNAN DALE QLD 4814
Pre-Kindy-Early Primary North Shore 70-90 North Shore Blvd NORTH SHORE QLD 4818
www.tgs.qld.edu.au An International Baccalaureate World School
Compliance Checklist Townsville Grammar School
Annual Summary of requirement Basis for requirement report
reference
Letter of . A letter of compliance from the accountable ARRs - section 7 Included compliance officer or statutory body to the relevant Minister/s
Non-financial . Government's objectives for the community ARRs - section 11.1 Pages 5-14 performance . Other whole-of-government plans I specific ARRs -section 11.2 NA
FPMS Financial and Performance Management Standard 2009
ARRs Annual report requirements for Queensland Government agencies
BOARD OF TRUSTEES
OF THE
TOWNSVILLE GRAMMAR SCHOOL
ANNUAL REPORT
To THE
MINISTER FOR EDUCATION AND MINISTER FOR INDUSTRIAL RELATIONS
FOR THE PERIOD
1 JANUARY 2017 TO 31 DECEMBER 20 17
@(Board ofTrustees of the Townsville Grammar School) 2018
PUBLIC AVAILABILITY OF REPORT
LEGISLATIVE BASIS
MINISTER RESPONSIBLE FOR ADMINISTRATION OF LEGISLATION
PRINCIPAL PLACE OF BUSINESS
STATUTORY FUNCTIONS
STATUTORY POWERS
CONTROLLED ENTITIES
STRATEGIC PLAN
REVIEW OF STRATEGIC GOALS
KEY PERFORMANCE INDICATORS
CHAIRMAN'S REPORT
TABLE OF CONTENTS
REVIEW OF OPERATIONS- PRINCIPAL'S REPORT
SERVICES PROVIDED
STAFF INFORMATION
LIST OF SENIOR OFFICERS
PROFESSIONAL DEVELOPMENT PROGRAMMES
PERFORMANCE MANAGEMENT SYSTEMS
RISK MANAGEMENT
SPECIAL INTEREST GROUPS
INFORMATION SYSTEMS AND RECORDKEEPING
OPEN DATA
FORWARD PLANS
FINANCIAL STATEMENTS (appended)
GLOSSARY
ORGANISATION CHART
STATISTICAL INFORMATION
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PUBLIC AVAILABILITY OF REPORT This report is available to the public on request at the School's Administration Office or www.tgs.qld.edu.au/about_us/Annuai_Report_2017. Enquiries should be directed to: Greg Walsh, Board Secretary, telephone 0747224931, Facsimile 47224994 or [email protected]. ISSN 1837-8544
LEGISLATIVE BASIS The Grammar Schools Act 2016 (Qid) came into effect on 1 January 2017. The Grammar Schools Act 2016 (Qid) did not alter the status or functions of the Board of Trustees or the Board's responsibility for the governance of the school.
The Board of Trustees of the Townsville Grammar School is constituted under the Grammar Schools Act 2016 (Qid) and is a Statutory Body as prescribed by the Financial Accountability Act 2009 and is subject to audit by the Auditor-General.
MINISTER RESPONSIBLE FOR ADMINISTRATION OF LEGISLATION The Minister for Education and Minister for Industrial Relations is responsible for the administration of the Grammar Schools Act 2016 (Qid).
PRINCIPAL PLACE OF BUSINESS 45 Paxton Street, Townsville Qld 4810 is the main campus address of the School. Junior School campuses are located at 1 Brazier Drive Annandale Qld 4814 and Cnr Erskine Place and North Shore Boulevard Burdell Qld 4818.
STATUTORY FUNCTIONS Townsville Grammar School Board
Act
Functions
Grammar Schools Act 2016 (Qid)
The Board of Trustees held eight (8) general meetings and one (1) strategic planning meeting during 2017. The functions of the Board of Trustees of the Townsville Grammar School are:to supervise, maintain and control the operations of the Board's school; -to erect, alter, add to, purchase or sell buildings used or to be used for the Board's school; -to effect general improvements to the premises used or to be used for the Board's school; -to provide an educational program for the Board's school; -to make policies and procedures about:
- fees and charges payable in relation to students enrolled or to be enrolled at the Board's school; and -the management and control of the Board's school; and - the discipline and conduct of students enrolled at the Board's school.
Achievements - In March 2007 a Strategic Capital Developments timeline was developed as a charter for future capital works. The School continues to implement this strategic capital development plan. Master plans have been developed for each of the three campuses and these guide capital development. -A Building sub-committee met on a monthly basis to ensure strategic developments identified in the strategic plan progressed as planned. - The development of the School's third campus at North Shore was progressed with completion of an Early Education Centre in January 2015. Construction of stage 2 of the campus was completed late October 2016. The School accepted enrolments for years Prep to 2 from January 2017. - Restoration of the School's historic, heritage listed, School House continued during 2017. The exterior restoration was completed and the internal use designs will be the focus of 2018. -The incumbent Principal retired 31 December 2017 after 20 years as Principal and the Board engaged in an extensive, world-wide candidate search to ensure the Principal (01/01/2018) continues the School's development in line with the Board's priorities.
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- A strong performance by the year 12 cohort - 2017 OP results summarised httl2s://www.tgs.gld.edu.au/news/tgs-news/class-of-2017-results/
Financial The Board of Trustees is responsible for the preparation and fair presentation of the reporting financial report in accordance with prescribed accounting requirements identified in the
Financial and Performance Management Standard 2009. In accordance with this, general purpose financial statements pursuant to section 62(1) of the Financial Accountability Act 2009 are prepared. The financial statements are subject to annual audit under the Auditor-General Act 2009. The QAO report 'Universities and grammar schools: 2106 results of financial audits (Re12ort 18:2016-17)' was tabled in the Queensland legislative assembly on 22 June 2017.
Remuneration: Board members are engaged on a voluntary basis and no remuneration is received. Members: S.Durward, J.Johnson, D.Rains, A.Johnson, B.McKay, G.Bell, C.Cocklin
STATUTORY POWERS A Board has all the powers of an individual, and may, for example:
- enter into contracts;
- acquire, hold, deal with and dispose of property; and
- do anything else necessary or convenient to be done in performing its functions.
- A Board may:
- establish and administer trust funds.
- establish and administer investment common funds;
- employ staff.
CONTROLLED ENTITY The Board of Trustees of the Townsville Grammar School administer a Building Fund established in accordance with "The Charitable Funds Act 1958''. The fund is audited by the Queensland Audit Office. The financial details are included in the attached statements. The fund is the "Townsville Grammar School Building Fund". The purpose of the fund is to provide for the acquisition, construction or maintenance of the School buildings.
STRATEGIC PLAN 2017 Mission Statement
To provide a best practice, independent school environment within which students enjoy mutual respect, a sense of pride and can achieve their personal best in academic, cultural and sporting endeavours.
Vision
To grow Townsville Grammar School to maintain pre-eminence in North Queensland.
Critical Success Factors
• Leadership of the Principal;
• Quality and commitment of all staff;
• High expectations of student achievement and behaviour;
• Strategically focused Board with a strong relationship with the Principal;
• Sound financial base.
Enrolments
• Townsville Grammar School will pursue a consolidation model of enrolment growth in the current economic circumstances but then pursue a more aggressive model as conditions improve.
• Develop the North Shore Junior Campus. Stage 1 - Pre-Prep and Pre-Kindy constructed in 2015, opened 2016 and stage 2 -Prep to year 2- constructed in 2016, opened 2017. Campus development to accommodate incremental year level roll out.
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Educational Offering
• Establish appropriate schooling structures and programmes which maximise student potential within a single School framework:
- P-6 Junior School - Annandale Campus - P-6 North Shore Campus (2017 P-2) - 7-9 Middle School- North Ward Campus - 10-12 Senior School- North Ward Campus
• Develop best practice program delivery - teaching, learning and caring;
• Maximise OP outcomes for all eligible students;
• Provide a best practice co-curricular program staffed primarily by TGS personnel.
Boarding
• Build on our strength as the pre-eminent co-educational boarding School in North Queensland;
• Boarding facilities are sustainable over the foreseeable future given the School's preference to retain a model of "excess demand for boarding".
• Improve the amenity and appearance of the Parker Hall boarding facility. Bathroom renovation and external stairs and entrance statement project to be further developed.
• Attract and retain quality boarding staff.
Staff Development
• Ensure competitive and attractive remuneration for all staff;
• Provide attractive professional development opportunities;
• Further develop staff facilities and working conditions;
• Optimise the efficiency and effectiveness of the Senior Management team.
Marketing and communications
• Strengthen links with alumni to ensure an ongoing base of support for the School's future;
• Build stronger relationships with the local, national and international School community;
• Maintain the opportunity for parents and friends of the School to interact as a positive School community.
Property, facilities and resources
• Continue development of the campuses in accordance with the respective campus master plans.
Governance and management
• Manage the succession of membership of the Board to ensure enhanced effectiveness and a continued strategic focus;
• Provide ongoing governance training to the Board within the School.
Funding the Vision
• Establish and resource a TGS Foundation to underpin fund raising and the future development of the School;
• Prepare a financial plan for the life of this strategic plan.
The Values of Townsville Grammar School • Personal best - a commitment to personal best achievement by students in all their endeavours;
• Best practice - a commitment to organisational critical reflection and incremental improvement;
• Mutual respect - a commitment to ensuring that everyone is valued and a School ethos where there is:
- Respect for self - Respect for each other - Respect between staff and students - Respect for the fabric, ethos, history and facilities of the School.
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• Shared leadership - everybody in the School from Board to staff to students accepts responsibility for maintaining the values and standards of the School;
• Responsive to our community - an ongoing commitment to listen, to discuss and to take action in the best interests of the whole School;
• Staff are valued as an integral component of the ongoing success of the School.
REVIEW OF STRATEGIC GOALS • In September 2005 the Board engaged a consultant to facilitate a workshop to review progress on the Strategic Plan to date.
It was agreed that 6 priorities will be the focus of the School's strategic thrust over the medium to long term: • A building programme to cope with expanded enrolments at the North Ward and Annandale campuses; • A focus on attracting, developing and retaining high calibre teaching staff; • Adoption of a growth model which could include development of a third campus in a new growth area of Townsville; • A strategy for the boarding element of the School's offering and operations; • Continued focus on improving academic outcomes; • A more structured approach to maintaining contact and fostering relations with alumni.
Further, it was agreed that tasks previously identified in the Strategic Plan that are yet to be completed will receive greater priority.
These priorities remain the focus of the Board of Trustees. In summary: • The Board convenes an annual strategic planning meeting to consider the School's progress towards the
identified priorities. • Master Plans have been developed to guide the building program. • The School's third campus- North Shore- accepted years Prep to 2 enrolments in 2017. • Providing better education and training outcomes for the School community genuinely open doors for our
students as they prepare to enter the workforce and further education. Such outcomes align with the Queensland Government's community objectives.
The retention of enrolments during the recent regional economic downturn indicates the school is meeting its strategic goals:
• Developing a best practice program delivery in teaching learning and caring. • Providing a best practice co-curricular program. • Building on the schools position, as the pre-eminent boarding school in North Queensland.
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Operating Efficiency 2017 2016 2015 2014 2013
Total Income $ 29,950,328 $ 31,271,206 $ 30,653,080 $29,929,561 $28,880,642 Operating Surplus before Depreciation and Interest expense $3,600,877 $5,532,052 $4,620,375 $5,167,682 $4,888,791
Student Numbers 1256 1327 1374 1414 1459
Operating Efficiency 12% 18% 15% 17% 17%
Per Student $2867 $4169 $3363 $3655 $3413
Operating efficiency is measured as the surplus from every dollar of gross revenue. The Somerset Education survey for year ended 31/12/16 reported an average for similar schools of 14.1 %. Sample selection criteria: State: QLD; Day/Boarding: Boarding; SES between 100 and 110; Type: Coeducational; Curriculum: P-12; which contains 6 schools.
Debt per Student 2017 2016 2015 2014 2013
Borrowings at end of Financial year $16,336,813 $17,721,066 $19,008,301 $13,206,697 $14,422,244
Student Numbers 1256 1327 1374 1414
Debt per student $13,007 $13,354 $13,834 $9,340
REVIEW OF OPERATIONS- PROGRESS TOWARDS GOAL ACHIEVEMENTS CHAIRMAN'S REPORT
1459
$9,885
2017 has been a marquee year in the history of Townsville Grammar School in several respects. However, the most significant historical event is the retirement of Principal Richard Fairley, after 20 years of outstanding leadership of our school.
Richard Fairley's appointment as Principal in 1997 and the commencement of his principalship in 1998, at the end of Mr Steven Paul's term as Principal, marked the beginning of a period of critical developments that have been of outstanding and enduring benefit to the school, our parents, our students and our staff.
As a leader, education visionary and cultural curator in the role of Principal, Richard Fairley has significantly enhanced the successful academic regime in the school. He has overseen the introduction of the positive education philosophy and the integration of the international baccalaureate program. He has nurtured the cultural environment of our arts, music, and performing arts programs. He valued the Grammar School's traditions and ethos. He grew and supported our diverse sporting program. He has valued our staff and their positive contribution to the success of our school. He worked tirelessly and positively with the Board of Trustees in its governance, strategic and guardianship of values roles.
History will judge Richard Fairley's principalship of Townsville Grammar School as a watershed in its growth, academic and cultured development and its sense of place in the educational environment.
On behalf of the Board of Trustees and the School I acknowledge the wonderful contribution Richard Fairley has made to our school as an outstanding leader, educator and custodian of our grammar values. We wish Richard and Nina Fairley, whose support and counsel has been an integral part of the success of Richard's principalship, a healthy, invigorating and enriching retirement.
The search for and selection of a new principal, who is in our school the Chief Executive Officer, is the most important function of a Board of Trustees. The search - a process that dominated a nine month period from late-2016 to mid-2017- sought and received expressions of interest and candidate
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applications from overseas, interstate and within Queensland. After a rigorous selection and interview process, the Board appointed Mr Tim Kelly, currently Deputy Headmaster at Toowoomba Grammar School, as Principal of Townsville Grammar School from 01 January 2018.
The Board of Trustees are, and I am sure the school community will be, delighted with Tim Kelly's acceptance of the appointment and we look forward to another enriching and successful era in the history of our school.
Tim Kelly brings academic stature, fine personal qualities, a committed work ethos and valuable experience as a Deputy Headmaster (including a number of significant periods as Acting Headmaster) of a large sister school that shares our institutional origins, values, the grammar traditions and ethos and has been, and continues to be, a highly successful regional school.
Our school will be in good hands as we move through the transition from Richard Fairley's tenure as Principal to that of Tim Kelly's principalship. The Board of Trustees looks forward to working in its governance, strategic and custodian roles with Mr Kelly and we as a Board are confident in his capacity to raise the school to new heights as one of regional Queensland's leading educational and youth development institutions. We will formally welcome Tim Kelly, his wife Nicola and family to our school early in the first term next year.
The opening of stage 2 of the North Shore Junior School earlier this year is another marquee event in the development and growth of the school. It is situated in a planned high population growth catchment area of Townsville and our Junior School growth predictions are being achieved. The development and growth of this campus has been planned conservatively and it will mature into a valuable provider of junior school education and complement and contribute to our Middle and Senior School at North Ward, as the Junior School at Annandale has done and continues to do successfully.
The Board of Trustees has recently refined and extended its strategic planning for the school's development over the next 10 years. A major focus will be on the progressive redevelopment of the senior campus and North Ward.
The boarding facilities at North Ward are to receive a make-over in the December- February period, with the completion of the first of a two stage redevelopment. A development of a new entrance to the boarding house is currently in the design phase and proposals to design facilities for senior boarders that reflect their maturity, independence and responsibilities as student leaders and mentors are at early stage of planning.
Another continuing marquee development is School House. It will shed its scaffolding and safety cladding to expose its brilliant new and refurbished exterior, including new or remodelled verandas. Further planning for the interior redevelopment is underway and we will engage with the school community in the New Year about the detail of the proposals.
Our year 12 students now transition to their further studies and careers. This transition is built on the academic, cultural, sporting, societal and collegiate development that they have experienced as students in the exceptional Queensland grammar school educational environment in their years at our school. We wish them every success in their adult life and future careers.
To all our valued staff, the Board of Trustees express its thanks for you tireless and professional application to the educational tasks that you are entrusted with. Academic success is a joint endeavour of students and excellent teaching staff. Our school also has the valued support of non-teaching staff in varied capacities across our three campuses. Without your support and work ethic the school could not function.
We acknowledge the leadership, operational and professional excellence of our senior management team who have worked collaboratively with the Principal to ensure that the daily operations of the school are consistent and seamless.
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The efficient daily management of a large school such as ours does not happen by accident. It requires detailed planning, implementation, monitoring and review in a cooperative and professional environment. That is what we get from our Principal, his senior management group, all our staff and our student teachers. The Board of Trustee's acknowledge that contribution. It enables the Trustees of the school to focus on their role in governance, strategic planning, financial oversight and custodianship of the traditions, ethos and values of a very successful and significant Queensland Grammar School. We acknowledge the professional contribution of the Board of Secretary Mr Greg Walsh in support of the governance work of the Board of Trustees.
I thank my fellow members of the Board of Trustees for their continued support of myself as Chairman and Mr John Johnson as Deputy Chairman, particularly during my several absences from Townsville in the course of the year. The Board's membership succession plain is being implemented and to the Trustees who will be retiring early in the New Year, prior to their appointment end-date in late 2019, I express my personal thanks and the thanks of their Board colleagues for their invaluable individual and collective contributions to the business of trusteeship and the successful governance of our school.
We look forward with the whole of the school community to 2018 and the exciting and invigorating challenges that we will undertake in collaboration with the leadership of Principal Tim Kelly.
Finally, from my own and the Trustees personal perspectives, we acknowledge our professional relationship with Richard Fairley and the collegiate times we have all shared with Richard and Nina. We have had the benefit of a consistently loyal, professional and insightful contribution to governance of the school from Richard and he has contributed to and implemented the Board's broad strategic vision for the development of the school. Richard and Nina Fairley, we as Trustees thank you both. Transition safely and contentedly into what we expect will be a busy 'retirement', with the knowledge and satisfaction of having shared a twenty year journey of significant and enduring success as partners with the whole school community in a notable time in the history of Townsville Grammar School.
Judge Stuart Durward SC
Chairman, Board of Trustees
REVIEW OF OPERATIONS- Principal's report In 2018, Townsville Grammar School will celebrate 130 years of educating young people in North Queensland and preparing them to make a difference in society. During this journey the School has stood the test of time in the face of the vagaries of government funding models, drought and cyclones, economic recessions and depressions and two world wars. During the course of our history, some 15,000 students have passed through the gates of the School. Today, children enter our Early Education Centre as young as 4 years of age enjoy the very best of facilities and learning experiences, at Grammar.
Of our graduates, some 3,500 Grammarians have been boarders and they have developed very special bonds, not only with each other but their school. We are delighted that, in 2017, nearly 100 students currently attending the School are the children of Past Grammarians and that we currently have a number of exceptional teachers who themselves also attended Grammar.
As one of the original Queensland Grammar Schools, we have always had a very clear mission of providing a holistic education for all our students and, in particular, a sound preparation for those who seek university entrance. A Grammar education has always been about the growth and development of young people across the broad spectrum of academic outcomes, sport, music, drama and community spirit. In recent years, with the introduction of the International Baccalaureate Diploma Programme and Positive Education, we have enhanced this traditional ethos by providing explicit opportunities for students to develop an understanding of self and an outward looking view of the world, through the provision of a world class curriculum.
From the very beginning, many of our alumni have been aspirational and with no local university in Queensland until the opening of UQ in 1911, our young graduates initially travelled to Sydney University
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to undertake further study. Of course, this has now changed dramatically but many of our graduates still gravitate to Sydney, Melbourne, Brisbane, Newcastle and Canberra and, in more recent times, to the UK, USA and HK. Not only have we been committed to young people coming in good and going out better, we have also encouraged an exciting culture of curiosity about knowledge and understanding.
In this context, we have been particularly delighted in recent years, to support a number of students to complete units of study overseas while still at school. Some of these students have been as young as Year 10 and their experiences have been nothing short of remarkable.
No annual report would be complete without acknowledging the sacrifices made by the parents of our current students. The financial burden of boarding and tuition fees has become increasingly difficult for many and the pressure on schools, on the one hand to contain fees and yet on the other hand to meet growing expectations about improved facilities, enhanced technology, special needs, student welfare, co-curricular activities and curriculum development, requires ever prudent management. The economic cycle in recent years has meant that many of our families have had changed employment and business circumstances, making the affordability of a private school education even more challenging.
Townsville Grammar remains the only Grammar school in Queensland at present to provide senior students with a choice of two pre-tertiary pathways; the Queensland Curriculum and Assessment Authority (QCAA)- Overall Position (OP) system and, since 2010, the International Baccalaureate Organisation (lBO)- IB Diploma Programme. This year will see our 7th IB Diploma cohort graduate from the School with two of our IB graduates from last year have been offered undergraduate courses in the UK. We are delighted that the Anglican Church Grammar School (Churchie) in Brisbane is also now an accredited IB World School and will be offering the Diploma Programme to its boys for the first time in 2018.
With the introduction of a new Senior Assessment and Tertiary Entrance (SATE) system in Queensland from the beginning of 2019, TGS is particularly well placed, given the number of our senior teachers who have had extensive experience preparing students for external examinations under the auspices of the IB system. We are anticipating a growth in the size of our IB cohort in future years as the comfort of a school based assessment system is replaced by external examinations and this point of difference between the Queensland curriculum and the International Baccalaureate curriculum becomes less confronting for some.
In preparing for the introduction of the new SATE system, the School has undertaken a critical review of our current Year 10 curriculum and implemented a number of changes for next year to ensure that our students are well prepared for 2019/2020. Of the changes put in place, the most significant has been in the Science domain. Currently, the General Science course in Year 10 is preparatory for students selecting any of Physics, Chemistry, Biology or Earth Science. From 2018, students will be able to access a 'double' Science option, i.e. Physical Science (Physics and Chemistry) and/or Natural Science (Biology and Environmental Science). This change, in part, reflects the need to better cater for what is historically a strong Science uptake at Grammar where over 90% of our Year 11/12 cohort typically take at least one Science and over 60% take two or more Science subjects.
The uptake of senior Science subjects by our girls is extremely impressive with 97% of our senior girls currently taking a Science subject and nearly 70% taking two Sciences. This uptake of Sciences at Grammar would comfortably exceed the demand for senior Sciences by girls in many all-girl schools.
In 2016, 92% of our Year 12 cohort achieved either an OP or an IB Diploma result, indicating tertiary aspiration for most of our students. The depth of our OP results was very pleasing, although we were surprised by the smaller number of OP1 outcomes than we have become accustomed to in recent years.
Nevertheless, the Seniors of 2016 achieved our 3rd ranked "best ever" OP1-3 outcome since 1992, with 21.8% of the cohort achieving this result, compared with a Queensland average of 11.4% and 46% achieving an OP1-7 outcome, our 6th best result, since 1992. The IB cohort managed a 100% pass rate and we are particularly proud of our Hong Kong students, who achieved some excellent OP results - no mean feat for students studying in their second language.
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We are also very proud of those students who achieved their Senior Certificates via a vocational pathway and are now successfully placed in apprenticeships or traineeships.
The School's NAPLAN results in 2017 continued to be exceptional and clearly the best of any school in Townsville and one of the best performing schools in Queensland. In this context, Grammar was invited earlier this year to participate in a special research project being conducted by Independent Schools Queensland (ISQ). As a result of our high NAPLAN performances over recent years we were identified as one of the 'top 20' independent schools in Queensland and this research project will attempt to identify some best practices in these top performing schools as a means of sharing this practice across member schools. This independent sector commitment to a culture of improvement goes to the heart of education and improved teaching and learning across the state.
Of particular note was the performance of our Year 5 cohort which was ranked 5th in the State from 1,212 participating primary schools and the Year 7 cohort which was ranked 27th out of 496 secondary schools in Queensland.
One of the most encouraging shifts in curriculum focus for schools across Australia in recent years has been in the area of Science, Technology, Engineering and Mathematics (STEM). Governments have identified the shortcomings of schools (and tertiary institutions) to sufficiently engage young people in this area of study, particularly in the higher levels of mathematics and science. Certainly, this has not been the case at Townsville Grammar School where over 80% of our Year 12 graduates typically progress their studies in STEM related areas at university. Our IB course, in particular, has provided enormous scope for intellectual challenge through the provision of Higher Level (HL) studies, within the Diploma Programme.
The Federal STEM agenda dates back to around 2014 when an additional $12 million of funding was allocated to STEM initiatives as part of a review of the Australian Curriculum. According to the Australian Academy of Technical Sciences and Engineering (ATSE), a strong commitment to STEM education is vital for Australia's prosperity. Research indicates that 75 per cent of the fastest growing occupations require significant STEM skills and knowledge and STEM based employment is projected to grow at almost twice the pace of other occupations.
Not surprisingly, as schools respond to this agenda, the emphasis is sometimes more about marketing than authentic curriculum development, as competitor schools (and universities) grapple to find a point of difference in a crowded market place. For some schools, this has translated into the building of STEM centres, the introduction of STEM days, international STEM tours and even the use of catchy slogans. Of course, Grammar is not immune from looking to respond in innovative ways as well and the STEM programme we have initiated in Years 3-7 this year has been authentic and robust.
Hospitality is an important option within the curriculum in Years 10-12 and continues to flourish. Students gain important practical exposure to hospitality through their barista work on the TGS coffee cart and service work at numerous School functions and dinners. As a co-curricular activity, the Cooking Club is always popular and attracts a number of younger students who want to expand their range of cooking skills. In an exciting development for 2018, the School plans to re-introduce Food Technology into the Year 7 curriculum. This applied programme will allow students to learn about appropriate kitchen preparation, hygiene and healthy cooking skills, suitable for life.
Under the meticulous guidance of our Careers Advisor, career counselling for students is an ongoing process throughout the year, ensuring that students have accurate and current advice for subject selection, university applications and employment pathways. The QTAC Parent Information Evening was well attended this year, with excellent feedback from parents.
Year 10 students are guided to explore alternative pathways, including TAFE and University subjects as part of their Senior Education and Training Plan. This year we have a number of students completing Vocational Education Pathways through TAFE or other institutes, completing Certificate courses in Construction, Engineering, Animal Studies, Hospitality, Business, Childcare and Beauty. We have had several students in Year 11 successfully complete tertiary education courses, providing them with direct entry and bonus OP points.
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Over 170 students have undertaken some Work Experience. This is a flexible programme where students are able to organise experience through an employer at a time convenient to all parties. This year students were placed with employers in the IT field, Federal Parliament, medicine and allied health care, dentistry, optometry, education, law, engineering, automotive services, veterinary surgeries and the Defence Force.
The health and wellbeing of our students is 'front and centre' of what we set out to do as a place of learning and living. The reality is that students cannot learn effectively or participate in the full life of the School if their health and well-being is not supported and given priority. Education, as distinct from schooling, is about so much more than subject knowledge and tests and assessments. Our School motto bonus intra melior exi captures the essence of our core purpose and our Pastoral Care Charter makes explicit that "a child's personal growth and wellbeing is best enhanced by a safe and caring environment where each individual is accepted, respected and valued."
Our Pastoral Care Framework is premised on a number of timeless Core Values. We are now into the 51h
year of Positive Education underpinning our pastoral care framework and it is uplifting to see the amazing work being done by so many of our Early Education, Primary and Secondary staff, both teaching and non-teaching, to nurture every child in their care. At the Junior campuses this role is primarily managed by Class Teachers and at North Ward by Year Level Co-ordinators, Form Teachers, Subject Teachers, Boarding staff and specialist support staff such as the School Psychologists and our Health Centre nurses. The nature of our school is that no one individual with a particular job title owns pastoral care - it is a built-in expectation and powerfully embraced by teachers, support staff and our sports coaches.
Year level camps and tours provide a special opportunity for students to build on their relationships with peers and teachers and to grow by being challenged outside their normal comfort zone. Boarder retreats, Year 3-8 Camps, Earth Science and Geography Camps, Duke of Edinburgh expeditions, Year 6 Melior Exi activities, Year 6 Sports Tours to the Gold Coast, the Year 7 Melbourne Tour, the Year 12 Ski Tour to New Zealand, the Senior Rugby and Netball Tour to the UK and Europe and Educational Tours to Japan, all provide a unique opportunity for personal growth, character development and the enhancement of pastoral relationships. These extra-curricular adventures all contribute to emotionally healthy young Grammarians.
Whilst all year levels have particular pastoral activities and address different Positive Education domains and character strengths, the Year 10 programme of Service Learning remains particularly noteworthy. All Year 10 students are involved in fund-raising and volunteering for a particular charity during the year. The projects undertaken in 2017 included volunteer work at: Blue Care, Land Care Australia, Cootharinga Activity and Respite Centre, Townsville Foster and Rehoming Animal Shelter, Operation Christmas Child and the Endeavour Foundation.
The School's culture of community service is embedded across all campuses and every opportunity is taken to show gratitude for what we as a community enjoy and to recognise that there are others in Townsville, Queensland, Australia and throughout the world, a lot less fortunate, than ourselves.
The Interact Club held its Annual Food Appeal in July. This appeal involved students from all campuses donating over 3,000 non-perishable food items to Food Relief NQ for distribution to needy people in the Townsville community. lnteractors also prepared 200 birthing kits for the Townsville Zonta Club, to help the safe and healthy delivery of newborns in third-world countries. The Interact Club made a special donation to the Supporters of 65 Roses to assist with Cystic Fibrosis research and support, following the passing in September of a much loved Past Grammarian.
The Music Faculty has continued to support Musicians without Borders as its designated charity. Donations received at Music functions, Grammar Sings and Ensemble Showcase evenings are used by this charity for healing and reconciliation in areas torn by war and conflict. This year the Founder and Director of Musicians without Borders, Ms Laura Hassler, visited Grammar to thank our community personally for the ongoing fundraising and to speak to students about the work of her organisation.
Page 10
The students of our Junior campuses continue to embrace community service opportunities. The annual visits of students to the Villa Vincent Nursing Home and the Good Shepherd Nursing Home are always warmly received and welcomed by the residents. A medical supplies and toiletries drive was held to benefit YWAM and this organisation's work in Papua New Guinea. The proceeds of the annual Disco, Bring Your Own Backpack Day and Funky Hair Day were used to support the School's Ethiopian foster child. Pre-Prep held Jeans for Genes Day and Day for Daniel in support of these charities. Other community service activities and fundraising included the Year 6 Community Clean Up and the Mayor's Christmas Appeal.
Co-curricular Music, Drama and Sport programmes continue to thrive within the School and provide enormous opportunities for students to engage and develop an all-important sense of belonging. Numerous other activities also exist for student involvement in the life of the School.
The Music programme provides a comprehensive collection of pathways for musical expression with instrumental and vocal ensembles that perform regularly at school and community events, exhibiting the skills and talents of our students. Our Music Faculty is well supported by the community and the annual Friends of Music Cocktail Function was attended by 120 guests.
At the North Shore campus, music is a vital part of the Early Years curriculum as the children learn about self-control, expression and teamwork. The students at North Shore have opportunities with instrumental and choral work, and the programme is designed to grow with the campus.
Music Tuition at the Annandale campus remains popular with fifteen tutors providing over 200 lessons weekly. In 2017 a variety of instrumental ensembles with strong membership regularly demonstrated refined musical skill, Choirs performed regularly and Recitals held each term were often over-subscribed with performers.
The annual Grammar Sings and Ensembles Showcase Concerts provided opportunities for our choral and instrumental ensembles to present their talents to the School community and each concert had a capacity audience.
Townsville Grammar School's established collaboration with the Australian Festival of Chamber Music is now in its eleventh successive year. In 2017, the School remained a Silver Sponsor of the Festival, hosting the Winterschool and sponsoring the Winterschool directors, Ms Gwyn Roberts and Ms Jenni Flemming. Many students from Grammar joined the AFCM choir for performances, and our senior school barbershop ensemble, Lezom, were invited to perform at the Concert in Queens Gardens as part of the Festival.
The School was well represented at the three Queensland Conservatorium State Honours Ensemble Programmes in Cairns, Townsville and Brisbane. This highly prestigious programme provides young musicians the opportunity to work with their peers in an intensive environment of musical excellence.
Performing Arts continues to play a pivotal role in the lives of many students at Grammar and, in 2017, North Ward staff and students came together to produce the amazing biennial School Production of Beach by Australian playwright Timothy Daly.
2017 has been a busy year for Debating at Townsville Grammar School. It has continued to flourish, with 12 teams, across all age groups, competing in the Townsville lnterschool Debating Competition. Special congratulations are extended to the Grammar 2 Team on their victory in the Grand Final of the Senior Debating Competition
Chess at both the North Ward and Annandale campuses enjoys strong student participation. The Annandale campus became the first school to enter an all-girls team in the Junior Division and these girls were invited to participate in the Girls' State Chess Tournament. The top teams from both Junior School and Senior School campuses progressed to the State Finals, held in Brisbane in October. This is the fifth year in a row that the Juniors have achieved this honour and the third year in a row for the Seniors.
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The 181h annual Cultural Awards Evening was held in October. The presentations and cocktail function
provide an opportunity to acknowledge high achieving Music, Drama, Dance, Visual Art, Debating and Public Speaking students from Years 5 to 12 and over 300 students received Cultural Awards this year.
Sport is an integral part of co-curricular life at Townsville Grammar School. A significant number of our teaching staff are actively involved in coaching and managing teams and through this commitment enhance their pastoral relationships with students. It is these bonds that then improve student outcomes in classrooms and contribute to the holistic development of our students.
Of special note in 2017 was our Junior School interschool swimming team who won their 'A' Schools Carnival for the gth time in the last 11 years. In the secondary championships, our Senior Girls and Senior Boys Swim Teams finished 2nd at the TSSS Swimming Carnival. TGS celebrated another strong year of Cross Country with the Boys and Girls Teams finishing 2nd and 3rd respectively at the TSSS Carnival. Rounding out the lnterschool competitions, the TGS Girls Athletics Team finished 2nd and the Grammar Boys finished 51h in the TSSS carnival.
Special acknowledgement is in order for the many hard-working parent volunteers who represent the Parent Network at our House Carnivals and provide a much appreciated catering service for our primary and secondary students. It is this generosity of spirit which facilitates fund raising to invest back into School facilities and equipment, for students.
In Club Netball, the School had 187 players in 20 teams participating in the Townsville City Netball Competition. At the end of the regular season, 9 teams progressed through to the semi-finals.
In Club Rugby, the School fielded 1 0 teams with 163 registered players in the Townsville and District Rugby Union Competition. Our most successful team this year was the Under 17 Gold team who reached the Grand Final of their competition.
A Senior Rugby and Netball Touring group of 38 students travelled to Northern France, Belgium and the United Kingdom over the September holidays. The tourists' initial focus was on a Battlefields tour of the Somme, concluding at a poignant ceremony at the Menin Gate in Ypres, where Tour captains laid a wreath on behalf of the School.
The tour continued into the United Kingdom and the party played competitive fixtures against: Duke of York's Royal Military School, Sutton Valence School and Barnard Castle School in England, Boroughmuir High School in Edinburgh and Sullivan Upper in Belfast. The matches were all played in fantastic spirit and the tourists relished their time with their host families as friendships were formed across the globe, united by a shared love of their sport.
The Grammar Rowing Team of 51 athletes excelled in 2017 with their season culminating in a successful All Schools Head of the River Regatta in August, followed by excellent performances at the Queensland Schools Championships in Rockhampton in September. During the September break, TGS fielded a team of 12 Boys and 15 Girls to contest the Queensland Schools State Championships in Rockhampton. In all, our team featured in 26 events including 7 semi-finals and 7 finals.
Townsville Grammar School continues to offer a 'home away from home' environment to students who for reasons of distance and opportunity, live on campus, during term. This residential service has been offered at Grammar since the School opened its doors in 1888. These days, our contemporary boarding community is particularly diverse with students from not only rural Queensland but PNG, Japan, Fiji, Hong Kong, China, Thailand and Germany. Our Australian boarders are exposed to international perspectives, cultural diversity and insights that add real value to their lives. Our International students have the opportunity of being immersed into the Australian lifestyle and culture, contributing to their development and character.
The upgrading of the Parker-Hall building is now in train with the first phase of this significant investment, a major refurbishment of bathroom facilities, due to commence over the December/January vacation
Page 12
period. There are a number of other enhancements in the pipeline as well, all designed to enhance the residential experience for our boarders.
In 2017 TGS implemented the boarding management system (REACH) and this web based software has already streamlined our leave application system and, as it continues to be rolled out, will further enhance all record keeping within boarding. In September 2017, the Australian Boarding Schools Association acknowledged Townsville Grammar for successfully completing self-assessment for the Australian Standard for Boarding Schools and Residences.
2017 has seen continued investment and expansion into the new computerised school management system (TASS) that was initially implemented in 2016. In particular, this year has seen a shift into online interaction with our parent community through expansion of Parent Lounge. It has been exciting to observe the keen and enthusiastic reception to this online method of interaction.
Our parent community now has access to a wide range of data online including academic reports, absentee data and timetables, and the ability to book and view parent teacher interviews and tours. Online payments can be made for School fees as well as tours and excursions, taking away the need for our families to visit or phone the School during business hours, specifically for this.
The North Ward campus introduced new network infrastructure to replace the existing equipment which had reached end-of-life. This upgrade has seen significantly improved capacity and speed across the wireless Bring Your Own Device (BYOD) and fixed computer network, reflecting the ever increasing use of technology in both our teaching and operational fields. All three campuses are now running networks featuring modern WIFI technology with high speed and capacity.
BYOD has benefited from this upgrade, and shares the same IT network infrastructure. Via our BYOD network, students can access the internet, Student Cafe, and Moodie, as well as other educational resources.
New SMART Interactive White Boards have been installed at the new North Shore campus, along with a modern fleet of desktops and laptops for the classrooms. The campus features a purpose built IT data centre, keyless access to all doors via proximity cards, and security system including CCTV, reflecting our commitment to a safe, secure environment and technology as a key element of our learning environment.
The move into the next generation of Interactive Whiteboards has continued across the North Ward and Annandale campuses, matching the new installations at North Shore. Teachers and students are able to interact directly with teaching resources on screen, preserve contributions for later use and develop higher levels of engagement through student ownership of screen content. This new standard of Interactive Whiteboards feature superior image quality and reliability and will contribute towards a consistent teaching environment across our classrooms.
The continual evolution of internet technologies has seen opportunities to improve internet connectivity, in both speed and capacity. All three campuses are now connected with links that are five times faster, with an internet connection ten times the speed. This supports the continued use of technology and online content as learning resources.
The rollout of Closed Circuit Television (CCTV) has continued across the School. This system continues to prove its worth in ensuring the safety of students and protecting the value of our assets.
After many years of significant capital investment in the School's physical infrastructure, including the recent development of the North Shore campus, 2017 has been a year dedicated to prudent consolidation before re-focusing on the North Ward master plan and targeted enhancement of boarding facilities in the years to come.
The restoration of School House is progressing to plan with the expectation that the external works will be finalised by the end of this year and the project completed in the School's 130th anniversary year, next
Page 13
year. During 2017, $640,000 has been allocated to this heritage listed restoration, in a year where approximately $1 ,270,000 was spent on capital improvements, attracting nil Government funding.
Grammar has been generously assisted in 2017 by the ongoing support from the Black and Gold supporters, the TGS Parents Network and the Past Grammarians Association. Since 2007, the Black and Gold group has now raised in excess of $100,000 for the School's Music and Performing Arts facilities.
The ongoing support of the many generous School sponsors and a significant number of families who make contributions to the School's Building Fund are gratefully acknowledged. These tax-deductible donations are particularly important for the School's ongoing infrastructure development.
One of the greatest assets that a Head of any Independent School can have is a supportive Chair and Board. I have been blessed over my tenure by this alignment of persons and governance.
Judge Stuart Durward SC was appointed to the Board of Trustees in 1995 and elected Chair in 1997. He has always had a clear sense of the difference between governance and executive management and this ability to step back from the day to day operations of the School and focus on strategic and governance matters has enabled me to flourish under his chairmanship.
In his role as Chairman, Judge Stuart Durward has had two exceptional Deputy Chairs over the last 20 years.
Mr Ross Marsh joined the Board in 1984 and became Deputy Chairman in 1997. Mr John Johnson has also been a long serving Trustee, taking up his role on the Board in 1997.
John replaced Mr Ross Marsh as Deputy Chairman in 2006 and also took on the role of Chair of the Building Sub-Committee. He has been an incredibly hard-working and dedicated Trustee in this role. His background as an engineer has enabled him to provide clear insight and decisive support through numerous building projects and the various challenges that these projects have entailed. John's contribution to the Board has been enormous and his willingness to come into the School at short-notice and attend various project related meetings and deal with emergent problems has been extraordinary.
The Queensland Government and successive Ministers of Education have good reason to be grateful for the selfless service of these Trustees and, for that matter, Trustees in all of the Grammar Schools of Queensland. The Boards they represent in a voluntary capacity, all report to the Minister and contribute an enormous community service to their respective schools which, in turn, adds to the educational infrastructure of this state.
RICHARD FAIRLEY Principal 10 November 2017
SERVICES PROVIDED: 2017 Middle Years
The Middle Years Curriculum, Years 7 to 9, was organised around the Key Learning Areas. At Townsville Grammar School students study a core curriculum across these years electing a specific Modern Language option or Literacy Support. In 2017 three language choices were offered to students: Japanese, French and Italian. Students requiring literacy support were withdrawn from Modern Language classes to receive specialised support. A wide reading programme across Years 7-9 also provided an avenue for slower readers to receive additional support. Art and Design & Technology were studied on a semester rotation. Music was integrated into Year 7 curriculum for two periods per cycle, but the subject is an elective option for Years 8 and 9, occurring when wide reading is scheduled.
Page 14
Subjects offered include: '
.,,.. Year7
English Mathematics Science History & Geography Health & Physical Education 2 x Modern Languages*: Japanese, French, Italian or Literacy Support Art * I Design & Technology * Music Performing Arts Wide Reading
*Six months rotat1on
2017 Senior School
.·
English Mathematics Science History Geography
YearB
Health and Physical Education Art* I Design & Technology* Modern Language: Japanese, French, Italian or Literacy Support Performing Arts I.T. Foundations Music or Wide Reading
' .·
English Mathematics Science History Geography
Year9
Health and Physical Education Art* I Design & Technology* Modern Language: Japanese, French, Italian or Literacy Support Performing Arts I.T. Foundations Music or Wide Reading
In 2017, Year 10 students studied 7 subjects while students in Years 11 and 12 studied 6 subjects. In Year 10 three subjects were core: English or English Literature; Mathematics and Science. Students then elected at least one option from 4 subjects, with at least (1) option from: • Modern Languages Japanese, French, Italian • Drama • ESL • History • Geography • Literacy Support* (only if previously received support)
The other subject options for students to select from included: • Music • Technology Studies • Business Studies • Graphics • Information Technology • Physical Education • Hospitality • Art
Years 11 & 12 Curriculum The curriculum provision was flexible and allowed a student to be directed towards entry into the Faculties of Universities in Australia and into the Schools of all Institutes of Technology and Advanced Education, the Agriculture Colleges, the Rural Training Schools, and the professions, trades and occupations in general. In 2017 the School continued the International Baccalaureate Diploma, an internationally recognised tertiary preparation programme. Specific vocational subjects were offered at Years 11 and 12 and the School continues to promote students' participation in School-based apprenticeships and traineeships to provide preparation for employment in the competitive labour market that faces schoolleavers today.
STAFF INFORMATION During 2017 the School employed 208.4 FTE employees, 98.6 teaching staff and 109.8 ancillary staff members and had a Permanent Separation Rate of 14%. Employment flexibility is accommodated to the extent that it can however the School environment is structured and inflexible. The School seeks to attract and retain staff by being the pre-eminent School in North Queensland.
Teaching Staff Senior Junior
Non-Teaching Staff Boarding Staff Total Staff
Number of FTE Staff
64.7 33.2 98.6
92.1 17.7
208.4
Page 15
LIST OF SENIOR OFFICERS
Principal
Deputy Principal (Operations)
Director of Boarding & I. B. Co-ordinator
Head of Junior School
Head of Middle School
Head of Senior School
Director of Studies
Director of Enrolmentsand Marketing
Business Manager & Secretary to the Board of Trustees
Mr R.W. Fairley B.Econ., Dip. Ed., Grad. Dip. Ed. Admin., Grad. Dip. Currie. Leadership, MACE, FAIM, MAICD (Retired 31 December 2017) Mr S. Morris M.Ed., M.App.Sc., M.Mus.St., B.Mus., Grad.Dip.Ed. Mr C.Wilson HDE,B.Comm.,M.Bus.Leadership, Cert. Res. Care Mr N. Nethery B.Ed., Dip. Teach, Grad.Cert.Ed.
Mr A. Moran, HOE, Cert.Res.Care
Mrs S.Ahern Dip Teach, Grad Cert.Ed. (Middle Sch.)
MrS Monk, B.Sc, Grad.Dip.Ed., Grad.Dip.Comp.Sc.
Mrs K Scott B.A., Dip.Ed.
Mr G. Walsh B.Comm., MBA, Grad. Dip. CSP, Assoc. Dip. Civil Eng., FCPA, AGIA
PROFESSIONAL DEVELOPMENT PROGRAMMES The on-going professional development of the staff at Townsville Grammar School is actively encouraged through subject faculties, and is co-ordinated by the Director of Studies. The School has a significant Professional Development budget to provide opportunities for staff to attend professional development programmes and for professional development on designated student-free days throughout the year.
During 2017 staff attended various professional development activities, receiving professional development funding when required. Each semester a professional development newsletter is prepared and published to all staff and the Trustees. Each staff member is required to prepare a precis of the professional development and the outcomes gained.
PERFORMANCEMANAGEMENTSYSTEMS Financial and Administration System The School administration system is provided by a software package known as The Alpha School System (TASS).
The package is a complete school performance management system covering student and family administration, curriculum, timetable and financials. The financial module is a completely interfaced accounting package that enables the school executive team to manage the school efficiently and produce timely and accurate monthly reports to the Board of Trustees. The systems in place allow the Board to monitor the school's financial and operational performance in accordance with the Financial and Performance Management Standard 2009. The School keeps full and accurate records of its activities.
Benchmarking Each year the national body of the Association of School Bursars and Administrators (ASBA) commissions Somerset Education to conduct an Independent Schools Financial Survey. Schools participating in the survey are provided with a report by Somerset Education which provides financial benchmarks for the School.
The School participated in the survey during 2017 with respect to the 2016 financial data.
The Board considered the report provided by Somerset Education comparing the School's performance against schools of similar SES both within the State and nationally. As the School's 2016 performance
Page 16
was within the recommended guidelines no remedial action was taken. Key benchmarks were incorporated into the 2018 budget for the Board's consideration.
Board Reporting The Board of Trustees is provided with detailed financial and operational reports on a monthly basis.
The Operational Report is in the form of a report from the Principal that covers strategic matters such as staffing and enrolments as well as day-to-day activities.
The Financial Report is provided by the Board Secretary and contains: • Statement of Financial Performance by month year to date; • Variance Analysis of actual revenues and costs against budget; • Cash Flow Projections; • Finance Report; • Property Report; • Debtors Report; • Statement of Financial Position at the month end; • Key Performance Indicators against benchmarks set by education specialists for comparable schools such as:
o Revenues per Student; o Net Operating Margins; o Staff Pupil Ratios; o Full Time Equivalent Staff Numbers; o Capital Debt per Student.
The Finance Committee of the Board meets prior to Board meetings to review the Financial Report. This committee consists of the Chairman of the Board of Trustees, a Trustee who is a chartered accountant, the Principal and the Board Secretary. A report from this meeting is included in Board papers distributed to the Board. The School does not have an internal audit committee as it is felt the Finance Committee provides adequate audit control. Finance Committee members attend the annual audit exit meeting.
A review of the school's systems for compliance with the Financial Management and Performance Standard 2009 is provided as part of the audit process carried out by the Queensland Audit Office.
RISK MANAGEMENT The School developed a formal system for Risk Management during 2017. This Risk Management Framework will be rolled during 2018 to form an integral management function. Risks will be considered and reviewed by senior management throughout the year. Such reviews will be presented to the Board via the Risk Management Committee in summary form. Changes to risks will be recommended if deemed necessary. In addition to this, the School, with other Grammar Schools, has produced a comprehensive Financial Management Practice Manual as required by S61 of the Financial Accountability Act 2009.This manual provides detailed policy guidelines by which the School can operate effectively while providing a high level of accountability. The Board regularly reviews reports against the stated Risk Management Manual and Guidelines.
In addition to the Grammar Schools' risk management manual, the School has prepared staff handbooks for both academic and non-academic staff. The handbook covers the following policy headings: administration, boarding, co-curriculum, curriculum, emergency procedures, excursions and camps, facilities and resources, medical, staff and students. The manual provides policies and procedures designed to minimize day-to-day risk. These policies will fall under the risk management framework.
SPECIAL INTEREST GROUPS/RELATED ENTITES The Townsville Grammar School Parents Network and Black & Gold Ladies maintained an active interest in the School and carried out a number of fund raising ventures during 2017.
INFORMATION SYSTEMS AND RECORDKEEPING The School makes full and accurate records of its activities. Recordkeeping is a systematic part of the School's activities and records are identified, captured and retained in an accessible and useable format. The School is working towards compliance with Information Standards IS31 and IS40. All paper records
Page 17
are now stored off site in a commercial records management facility.
OPEN DATA Information regarding Consultancies and Overseas travel is published on the School's website and on the Open Data website https://data.gld.gov.au.
FORWARD PLANS FACILITIES AND INFRASTRUCTURE
• School House Refurbishment - Planning for the restoration of the heritage listed School House continued in 2017. Since the approval process was initiated in 2011, significant progress has been made toward the full restoration of School House. Board is considering how the building can be used as a focal point of the School. During 2017 the School completed the western and southern elevations. Focus will now turn to the installation of a lift and the future internal uses of the building.
SUMMARY OF FINANCIAL PERFORMANCE In 2017 Townsville Grammar School had a surplus from ordinary activities, after interest and depreciation of $2,082,062.This compares with a surplus of $2,487,322 for the previous year.
This result was achieved on revenues of $30 million, an increase on revenues of $31.3 million in 2016. The increase in revenue is attributable to increase student numbers and an annual increase in school fees.
The final cash position at the end of 2017 was $9.5 million in cash and investments.
A copy of the 2017 Annual Financial Statements of the Board prepared pursuant to section 62( 1) of the Financial Accountability Act 2009 (the Act), Division 60 of the Australian Charities and Not-for-Profits Commission Act 2012, relevant sections of the Financial and Performance Management Standard 2009, and other prescribed requirements is attached.
Debt and liquidity ratio graphs appear on page 20 of the report.
GLOSSARY:
AFCM- Australian Festival of Chamber Music lBO- International Baccalaureate Organisation NAPLAN - National Assessment Program Literacy and Numeracy OP - Overall Position SATE - Senior Assessment and Tertiary Entrance STEM- Science, Technology, Engineering, Mathematics QCAA- Queensland Curriculum and Assessment Authority TASS - The Alpha School System TGS - Towns ville Grammar School
Page 18
Board of Trustees TGS
1 School Principal
Business Deputy Manager& Principal
Board Secretary
Director of Director Head of Head Head Head of Enrolments of Senior Middle Junior Boarding &
& Studies School& School& School IB Coordinator Marketing Director of Director Director
Teacher of HPE & of Pos Education DHoB
Performance Sport Music Assistant Deputy Head Head of Boarding
PA to School Junior School Principal Counsellor & I
-Psychologist Assistant to Heads of Faculty Directors of IT Year Year
0 DoS lncl Sports Support Level Level Early OSHC
Head of Library & Info Services Manager Coordinators Coordinators Education Coordinator 110-121 17-91 Coordinator
Assistant Works Assistant Catering Audio Visual D-< :::>----<: )----( p---<: Business Manager Business Manager Manager f-'
Manager Manager (Finance) (General)
Yr7 '--- Assistant to Curriculum 1-- Head of -
Coord Boarding r--
Assistant I
Finance to Dir Secondary Academic Faculty Music Form Form Jnr & House Nurse in Staff Enrolments & (including IB Faculty) Specialists Teachers Teachers Early Ed Parents Charge
Publications Teachers
I Front Office Operations I Library IT
Support Staff Officer Teacher Services Support Teacher Boarding Nursing Maintenance Laundry, & Kitchen Aides Staff Staff Aides Staff Staff
Financial Statements- 31 December 2017 ABN 21 565 628 438
Contents
Financial Report Statement of Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements Trustee Declaration
Independent Audit Report
Page 1 2 3 4 5 15 16
This financial report covers TOWNSVILLE GRAMMAR SCHOOL as an individual not for profit entity. The financial report is presented in the Australian currency.
The Townsville Grammar School is established under the provisions of the Grammar Schools Act 2016.
TOWNSVILLE GRAMMAR SCHOOL is a not for profit school domiciled in Queensland, Australia. Its principal place of business is:
TOWNSVILLE GRAMMAR SCHOOL 45 Paxton Street North Ward QLD 4810
The financial report was authorised for issue by the Townsville Grammar School on 23 February 2018.
REVENUE FROM CONTINUING OPERATIONS
Employee expenses Supplies and services Depreciation Finance/borrowing costs Other expenses
Operating result from continuing operations
Other comprehensive Income lncrease/(Decrease) in asset revaluation surplus
Total other comprehensive income
Total comprehensive income
The accompanying notes form part of these statements.
NOTE
2
3 5
10a 6 7
14
TOWNSVILLE GRAMMAR SCHOOL STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2017
Balance as at 1 January 2016 Operating result from continuing operations Total other comprehensive income - Decrease in Asset Revaluation Surplus Balance as at 31 December 2016
Balance as at 1 January 2017 Operating result from continuing operations Total other comprehensive income - Increase in Asset Revaluation Surplus Balance as at 31 December 2017
The accompanying notes form part of these statements.
Retained Surpluses $
35,915,328 3,140,156
39,055,485
39,055,485 1,228,387
40,283,874
3
TOWNSVILLE GRAMMAR SCHOOL STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2017
Asset Revaluation Surplus Total
$ $
15,109,070 51,024,397 3,140,156
(652,834) (652,834) 14,456,236 53,511,720
14.456,236 53,511,720 1,228,387
853,675 853,675 15,309,911 55,593,782
Cash flows from operating activities Receipts from school fees Receipts from government grants Receipts from other operating activities Payments to suppliers and employees
Interest received Interest paid Net cash inflow from operating activities
Cash flows from investing activities Government Capital Grants Payments for property, plant and equipment Net cash outflow from investing activities
Net Cash inflows/( outflows) from financing activities Proceeds from borrowing Loan repayments Net Cash inflows/( outflows) from financing activities
Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at end of financial year
The accompanying notes form part of these statements.
Summary of Significant Accounting Policies Revenue Employee Expenses Key Management Personnel and Remuneration Supplies and Services Finance/Borrowing Costs Other Expenses Cash and Cash Equivalents Receivables Property, Plant and Equipment Payables Other Financial Liabilities Accrued Employee Benefits Asset Revaluation Surplus by Class Commitments Contingencies Related Party Transactions Events Occurring After Balance Date Other Information
1. Summary of significant accounting policies
a} Basis of preparation
TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
The School has prepared these financial statements in compliance with the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009. The financial statements are authorised for issue by the Chairman of the Board of Trustees and Secretary at the date of signing the Management Certificate.
These financial statements are general purpose financial statements, and have been prepared on an accrual basis in accordance with Australian Accounting Standards Reduced Disclosure Requirements and Interpretations with tihe exception of the Statement of Cash Flows which is prepared on a cash basis. In addition, the financial statements comply with Queensland Treasury's Minimum Reporting Requirements for the year ending 31 December 2017, and other authoritative pronouncements.
With respect to compliance with Australian Accounting Standards and Interpretations, the school has applied those requirements applicable to not-for-profit entities, as the school is a not-for-profit entity. Except where stated, the historical cost convention is used.
Amounts included in the financial statements are in Australian dollars and have been rounded to the nearest $1. As a result of rounding additions may not necessarily add due to the rounding to the nearest $1.
Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period.
Current I Non-Current Classification -Assets are classified as 'current' where their carrying amount is expected to be realised within 12 months after the reporting date. Liabilities are classified as 'current' when they are due to be settled within 12 months after the reporting date, or the School does not have an unconditional right to defer settlement to beyond 12 months after the reporting date. All other assets and liabilities are classified as non-current.
b) New and Revised Accounting Standards The School did not voluntarily change any of its accounting policies during 2017.
There were no Australian Accounting Standard changes mandatorily applicable for the first time as from 2017 that had a significant impact on the School's financial statements.
The only Australian Accounting Standard that became effective for the first time in 2017 is AASB 124 Related Party Disclosures. This standard requires note disclosures about key management personnel (KMP) remuneration expenses and other related party transactions, and does not impact on financial statement line items. As Queensland Treasury already required disclosure of KMP remuneration expenses, AASB 124 itself had minimal impact on the School's KMP disclosures compared to 2016 (refer to Note 4 ). Material related party transactions for 2017 are disclosed in Note 17. No comparative information about related party transactions is required in respect of 2016.
The school is not permitted to early adopt a new or amended accounting standard ahead of the specified commencement date unless approval is obtained from the Treasury Department. Consequently, the school has not applied any Australian accounting standards and interpretations that have been issued but are not yet effective. The school will apply those standards and interpretations in accordance with their respective commencement dates. All other Australian accounting standards and interpretations with future commencement dates are either not applicable to the school, or have no material impact on the School.
5
TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
2.Revenue 2017 2016 From continuing operations Education revenue Tuition Fees Boarding Fees Application Fees Surcharge Fees State Government Recurrent Grants State Government Endowment Grants Commonwealth Government Recurrent Grants General Purpose levy Outside School Hours Care & PrePrep
Other revenue Capital Grants Interest Income - General Fund Interest Income- Cash Management Interest Income - Other Trading Activities Income Other revenue
Accounting PolicY
$
12.497,865 2,203,531
106.470 219,969
2,766,086 18,200
8,697,933 485,786
2,064.423 29,060,262
56,464 127,766 42,691
589,208 73,g37
29,950,328
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebatesand. amounts collected on behalf of third parties. The .school recognises revenuewhen the amount of revenue can be reliably measured, it is proba~le that future. economic benefits will flow to the school and specific criteria have. been met for each of the schoors activities as described below.
Revenue Is recognised forth~ major bu~i~ess activities as f;llows: (1). Tuition, Boardflig, App.llcatlon and Surcharge Fees; Outside School Hours Care.& Pre Prep fees are recognised upon enrolment of the student and
the Issuance of the sch001 fees.. . . . (2) . 9rants; 00~butl.cms; donations 11nd gift!! that ar~ non·reclprocal in nature are recognised as revenue In the year in which the school obtains
control overUiem. Where grants are received that are reciprocal in nature, revenue is accrued over the term of the funding arrangements. (3) ~ Interest Income Is recognised when it Is eamed. · 4 Tradin Activities lni:ome Is rec nised when It Is eamed.
3. Employee expenses Wages and salaries Employer superannuation contributions
Employee Related Expenses Worker's compensation premium Total
16,870,932 1,825,684
18,696,616
65,732 18,762,348
$
12,993,942 2,045,162
111,960 264,896
2,803,644 18,200
8,647,036 501,503
1,994,742 29.381,085
688,526 66,883
233,841 34,461
685,154 181,256
31,271,206
16,297,495 1,794,063
18,091,558
54,386 18,145,944
The number of employees as at 31 December, including both full·lime employees and part-time employees, measured on a full-time equivalent basis (reflecting minimum Obligatory Human Resource Information (MOHRI)) is:
Number of Employees: 208.4
Accounting PQ/Icy Wages, Salaries and Sick Leave Wages aild salaries due but uppaid at reporting date are recognised in the Statement of Financial Position at the. nominal salary rates. Payroll tax and workers', compensation lnsuraoceare a consequence of employing employees, but are not counted in an employee's total remuneration package. They are not employee benefits ahd are recognized separately as employee related expenses. Employer superannuation contributions~ annual leave levies and long service Jilave levies arn' regarded as employee benefits. . . . .
Prior history i~dfcates that on average, sick leilVe,taken each reporting period is less than the entitlement accrued. This Is expected to continue in future periods. Accordingly, I( is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised. . . ' . .
As sick leave is non-vesting, ~n expense is recognised for this ,leave as it is take~.
Annual and Ldng service leave, . . ,
200.2
The Scho.ol recogni~es a ,liability for annual and, long service leave for employees from commencement of employment. The part of the liability !halls expected to be llayeble"withi~ 12 months of. the end of the reporting period is classified as a current liability and measured at Its nominal amount. Otherwise Annual and Long Service. Leave liabilities are recognised as a non-current liability, in accordance with AASB,119. Where employees have met the prerequisite length of service and the School does not have an unconditional right to defer this liability beyond 12 months, long service is classified as a current liability. OU1erwlse it Is classified as "non-current. , . . . . . . .· The noO:current liability for annual and long service leave is recognised In the provision for employee benefits and measured as the present value of expected future payments to be madE! .In respect of services provided by employees up to the reporting date. Consideration Is given to expected future wage and salary leyels, experience of .employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bcinds wl.th terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.
Superannuation · Contributions are made by the School to employee superannuation funds and are charged as expenses when incurred. The School contributes only to defined contribution superannuation funds.
6
TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017 4. Kay Management Personnel and Remuneration I) Remuneration of Board Members No Board Mombom received or WGro entitled to rocoivo any foes or other bonofits during tho yoar.
li) Key manogomenl personnel Koy management porsonnol and remuneration disclosures are made in accordance with tho Financial Reporting Requirements for Ouoonsland Government Agoncios issuod by Queensland Treasury.
Tho School has assessod tho koy executive management personnel positions in context of lho School being constituted under tho Grammar Schools Act 1975. Details of oxocutlvo management pon:onnol posllions, rosponslbillties, appointment date and remuneration oro detailed below. Further information on lhoso positions can be round in the body of tho Annual Report under tho soclion relating to Governance.
Poaltlona Roaponalbllltloa Contract claumcatlon and appointment authority (curront
Trvsteo lncumbont!l
Eloclod Trustee Trustee
To supervise, maintain and control tho Eloc!od Trustee Trw:too
conduct of tho SchooL To make rules <Mth 1 cloclod rust eo
Trustee rogruds to tho monogomont and control of
~ovommont Appointed rust eo Trustee
tho School. Government Appointed Trustee
Trustee ovomment Appointed Trusteo Trustee Government Appointed Trustoo Principal
The Prlncipalls responsible for tho Throe year contract
Implementation or plans and stratogios as approved by the Board of Trustees.
Deputy Principal~ Five year contract Op&rntlons Tho Deputy Principal- Operations supports
tho Principal in implomontalion of plans and slraleglos as dolegalod by tho Principal.
Busino::t: Monsgor/ To ensure best practico deployment of tho
Permanent Boord Socrofory
Schoora financial f0$0urcos.
Diroc;tor of Boarding Tho Oiroctor Boarding assumes T~ year contract responsibility for all matters relating to the managoment and leadership of Boarding at tho School.
iii) Romunerofion Exponsos Tho remuneration and other terms of employment for the key oxoculivo management personnel oro specified in employment contracts. For tho 2017 year, remuneration or key oxoculivo management personnel increases woro basod on performance assessments, Tho porcontago Increases oro tied to tho achievement of pre--dolorminod Individual performance targets.
Remuneration packages for koy executive management personnel comprise tho follo<Mng compononts: Short term omployeo benefits -Mllch include:
o Baso- consisting of baso salary, allowances and leave entitlements paid and provided for tho enllro yoar or for that part of tho yoar during which tho employeo occupied tho specific position. Amounts disclosed oquallho amount oxponsod In tho Statement of Comprehensive Income.
o Non-monetary bonofits- consisting of provision of romis.sion for School foes and motor vohlclos togolhot with fringe bonofita lax applicable to tho benefit.
LonQ term employee benefits include lonQ service leave accrued. Post omplovmont bonofits include superannuation contributions. Tennlnallon Benefits oro not provided for'hithln indrvidual contracts omploymonl. Contracts of employment provide onlv for notico periods or payment In llou of notice on termination, rogardloas of tho reason for termination. No porformanco bonuses woro paid.
2017 Description Short Term long
Employee Benefits Term Totaloggrogoto Employee remuneration for Benefits oxocutivo monogomont Base Non~
porsoonol positions Monetary
notod abovo. Benefits
$'000 $'000 $'000 Truatoos 7
Principal 443 10 11 Ooputy Prfnclpa1- Otaratlona 157 4
Bustnaaa Manager/ 202 1 5 Board Socrotary
Olroctor of Boardlna 150 4
2016 Description Short Term Long
Employee Benefits Term
Total nggrogato Employee
remuneration for Benefits
oxoeutivo managomont Base Non·
personnel positions Monetary
noted above. Benefits
$'000 $'000 $'000 Truatoos. 7
Principal 426 15 11 Ooputy Principal~ Operations 138 21 3
Butlnon Managorl 197 1 5 Board Socrotarv
Director of Boardlna 131 21 2
Post Employee
Benefits
$'000
Post Employee
Benefits
$'000
Termination
Benefits
$'000
42 20 24
16
Termination
Benefits
$'000
41 18
251
17
•• 10 24 14 14 16J 3Jun 1 January 1998
1 January 2012
20 May 2004
25 August 1997
Total Remuneration
$'000
506 181 232
170
Total
Remuneration
$'000
493 180 228
171
TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
5. Supplies and Services Supplies and consumables Consultants and contractors Operating lease rentals Trading activities cost of sales School Transport Costs Other Total
6. Finance/Borrowing Costs Interest on QTC Borrowings Bank fees and charges
Accounting Policy FinanCE) cci~ts are recognised as an expense in the period in which they are incurred. Finance costs include: · · · -lnter~st.on bank .overdrafts and short-term and long-term borrowings; -Ancillary administration charges. •·
7. Other expenses Insurance premiums External audit fees* Total
2017 2016 $ $
4,733,432 897,636 613,771 386,191 447,927 208,480
7,287,436
971,638 85,956
1,057,594
268,167 31,500
299,667
* External audit fees- Total audit fees paid to the Queensland Audit Office relating to the 2017 financial statements are estimated to be $31,500 (2016: $31,500). There are no non-audit services included in this amount.
Accounting Policy . . ·· . . . . . The school's non-.current physical assets and other risksareinsured through Aon Risk Services Australia Limited,with premiums being paid on a risk assessment basis. In addition, the school pays premiums to WorkCover Queensland in respect of its oblioations for employee compensation. · · ·
8. Cash and cash equivalents General Account Cash Management Account Endowment Fund Account Cash on Hand Building Fund Loan Fund Restricted use balances: Short term deposit Suncorp Interest bearing deposit Total cash assets
a) Cash at bank
1,736,474 4,243,428
224,337 2,360
1,704,972 593
1,534,962
9,447,125
The above balances are bearing interest rates between 0.56% and 2.56% (2016- 0.95% and 2.75%).
b) Restricted Use Accounts Not available for use Restricted use accounts (Short term deposit, CBA and Sun corp Interest Bearing Deposits) of $1,532,500 (2016- $1,536,729) represents monies that have been bequeathed to the school. The use of these funds is restricted to the terms and conditions established in the bursary agreements. The bursary agreements stipulate the school cannot use these funds in the normal course of their operating cycle. These deposits are bearing interest rates between 0.90% and 2.70% (2016- 0.10% and 2.02%).
Accounting Policy For the purposes.of the Statement of Financial Positiqn and the Statement of Cash flows, cash and cash equivalents include all cash and che ues recei ted bufnot banked at 31 December as well as de osit at call with financial institutions.
8
4,289,046 1,282,089
597,137 459,839 403,315 278,148
7,309,574
1,039,130 106,984
1,146,114
252,134 31,500
283,634
782,659 5,120,711
223,188 2,260
1,629,888 593
1,536,729
9,296,029
TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
9. Receivables Trade receivables less: Impairment of receivables.
Other receivables- Debtors
(b) Movement in impairment for receivables Balance at beginning of the year Increase/( decrease) in impairment recognised as an expense Balance at the end of the year
Accounting Policy
2017 $
694,518 (299,660)
394,858 242,317 637,175
297,368 2,292
299,660
2016 $
Trade debtors are recognised at the nominal amounts due at the time of sale or service delivery. Settlement of these.amounts is required within 30 days from invoice date. · . . .
The collectability of receivables is assessed periodically with provision being made for impairment. Ali known bad debts were written~off as at 31 December. . . Other debtors generally arise from transactions outside the usual operating activities of the school and are recognised at their assessed values. Terms are a maximum of three months, no interest is charged and no security Is obtained.
10. Property, plant and equipment BUILDINGS Buildings at Fair Value 85,775,000 Less: Accumulated Depreciation (28,625,000) Total Buildings 57,150,000
LAND Leasehold Land at Fair Value 1,950,000 Freehold Land at Fair Value 5,650,000 TOTAL LAND 7,600,000
PLANT & EQUIPMENT Plant and Equipment at Cost 3,490,965 Less: Accumulated Depreciation (3,338,964) Total Plant & Equipment 152,000
WORK IN PROGRESS At Cost 19,025 Total Work in Progress 19,025
Total Property, Plant and Equipment 64,921,025
9
888,854 (297,368)
591,486 200,788 792,274
168433 128,935 297,368
82,140,000 (25,755,000) 56,385,000
1,950,000 5,659,800 7,609,800
3,430,182 (3,228,023)
202,158
53,844 53,844
64,250,802
a} Property, Plant and Equlpmont Reconciliation
Loaaohold Land Freehold Land Baal a of Moasuromont FalrValuo Fair Value Carrying amount at 1 January 2017 1,950,000 5.659,800 Acquisitions Revaluation incromonts/(decromonts} (Note 1 1} (9,800) Transfer bolweon classes Depreciation Carrying amount at 31 Docombor 2017 1.950.000 5 650,000
b) Valuations of land and butldlngs
TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
Buildings P&E Work In Progron Total Fair Value Coat Coat
Land and Buildings wero lndopondonlly valued by MrG Pyman (Certified Practicing Valuer). lntemational Valuation Consullants, a division of Aon Risk Sorvicos Australia Limited, in Oocombor 2017.
Loasohotd Land
Froohold land
Total Land
Building• Doprecialcd Replacement Cost
Market Value
Total Buildings
Valuo Fair Value Mouuromont
1,950,000 Leasehold land is hold under a Oood of Grant in Trust (DOG IT) providing tho Trustees with oxclutivo uso of that land but not its ownership. Tho o.....norship remains v.ilh tho Crown. In accordance ...;th Soction 185(3) of tho land Act 1910 as amendod by tho Land Act 1962, tho School has no power to aoll or transfer tho lond. Tho fair value of land was bnsod on publicly available dato on solos of aimilar land In noarby localitiM in tho twelve months prior to tho date of tho rova!uaUon. In determining tho values, adjustments ware made to the sales data to lake Into account tho location of tho schoofs land, ils size, belng subject loan oasemont and tho signlflcant restriction on tho schoors Inability to soli or transfer the land asset
5.650.000 Tho fair value of land was based on publicly available data on sales of similar land tn neorby localities in tho twelve months ---===~prior to tho date of tho revaluation, taking into consideration any zoning consldorationslrostrictions and encumbrances.
7.600.000
56,150.000 This category of buildings and silo improvomon!s aro of a specia!!sod operational naluro and aro raroly sold in tho open markol. Tho fair value of tho buildings and silo improvements has thoroforo boon dolormln&d by fin.t oslablishing their ostimotod coat to·rop!ace with an oqulvalonl now aaaol or Gron Currant Coat, using obbrovlotod bill of quanl!lios mothodologyvAlh CO$ting reference to Auotrolion Institute of Quantity Surveyors Currant Construction Costs and Building Cost Index, and Rawlfnwn'a Australian Construction Handbook for Civic Worb and Buildings. From each building and tho site improvements Gross Current Cost. is deducted depreciaUon for their physical, functional and economic obsolosconco.
1,000,000 Tho fair value of this. category of buildings was basod on publicly avnilablo data on solo$ of similar land in nearby localilios in tho twolvo months prior lo tho dato of tho rovalua!ion, taking inlo consideration any zoning conaldoratlons/rostrictions
---:::-==,.and encumbrances. 57,150.000
10
Ag;ounting folicv Acquisition of assets
TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
Actual cost Is used for the Initial recording of all non-current physical asset acquisitions. Cost is determined as the value given as consideration plus costs incidental to the acquisition; Inducting an other costs incurred In gelling the assets ready for use, Including architects' fees and engineering design fees. However, any training costs are expe~sed ~~ lncull'ed: . · ·
Property.Pia~t af1d Equipment Items: qf' pri)perty, plant aryd equipment With a 'cost or other value equal to or in excess of lhe folloWing thresholds are recognised for financial reporting purposes In the year of acquisition: · · · · · · Buildings· · Land Plant and Equipmemt. Other (including heritage & cultural)
Items of lesser value are expensed in.the year of acquisition. Land Improvements undertaken by Townsville Grammar School are induded in buildings.
Revaluations of Non·Current Physical Assets
$10,000 $1
$5,000 $5,000
Property, plant and equipment . · Land and Buildings; PfOjlerly, plant and equipment are shown at fair value in accordance With MSB 116 Property, Plant and Equipment, MSB13 Fair Value Measurement and Queensland Treasury's Non-Current Asset Policies for the Queensland Public Sector. These assets are reported at their revalued amounts, being fair value at the date of valuation,(ess any subsequent ~ccumulated depreciation and impairment losses where applicable.
In resp~ of the abovementioned asset classes, the cost of ilems acquired during the financial year has been judged by management to materially represent their fair value atthe ei!d of the reporting period. · · ·
Plant and equipment Is measured at cost in accordance with the Non-Current Asset Policies. The carrying amounts for plant and equipment at cost should not materially differ froll) their fair value. ·
Property, plant end equipment classes measured at fair value (refer above) are revalued on an annual basis undertaken by anindependentprofessional valuer. For financial reporting purposes; the revaluati,>n process- revaluation practices and procedures- is managed by the School. The School undertakes annual reviews of the revaluation practices ·(after each year's revaluation exercise), end reports to the Board of Trustees regarding the outcomes of, and recommendations arising from, each annual review.
-_ .:·" •', ' '··: ,, . '' ' ' ' . · .. If a particUlar asset class experiences significant and volatile changes In fair value, that class Is subject to specific appraisal in the reporting period, where practicable, regardless .of the timing of th~ last specific appraisal. · · · ·
Any revaluaUon increment arising on the revaluaUon of an asset is credited to the asset revaluation surplus of the appropriate class, except to the extent it reverses a revaluation decremept for the class previously recognised as an expense. A decrease In the carrying amount on revaluation is charged as an expense, to the extent It exceeds the balance, if any, In the revaluation surplus relaling to that asset class.
On revaluation:. . . . . . ·for assets revalued using a cost valuation approach (e.g. depreciated replacement cost)· accumulated depreciation Is adjusted to equal the difference between the gross amount and carrying amount, afler taking Into ac:cOunt accumulated impairment losses. This. is generally referred to as the 'gross method'; and · for assets revalued using a market or income-tiased valuation approach: accumulated depreciation and accumulated Impairment losses are eliminated against the gross amount of the' asset prior. to restating for the revaluation .. This Is generally referred to as the 'net'method'.' · · ·
. ·-_ : ~ ,' ' . <' ·-: ',, . ,, ,'' ' '·,-. ,' In previous years. Queensland Treasury's Non:current Asset Policies for the Queensland Public Sector.(NCAf's) mandated the gross method of revaluation for all revaluations. However, from 1 July 2014, the NCAPs now require either the gross or net method be used, according to the.valualion approach adopted for Individual assets (explal~edabeve).ln aqcordance with the above policies, this means a reported asset class may contain assets for which revaluations are accounted for using either method.
Materiality 'concepts according to the framework for preparation and presentation of financial statements are considered In determining whether the difference between the carrying amount and the fair yalue of an asset Is material.
Separately Identified components of assets are measured on the same basis as the assets to .which they relate.
Depreciation of Property, Plant and Equipment Land is not d~preciat~d as it has an unllmiled us.efullife.
Prope.rty, plant and equipment is depredated ona:stralght·llne basis so as to allocate the net cost or revalued amount of each asset, less its estimated residual value. progressively ~ver.lts estimated use[ui life to the school.
The estimation of the useful lives . of assets is . based on historical experience With similar assets as well as considerations such as manufacturers' warranties, asset tumover practices and the School's strategic asset plan. Reassessments of useful lives are undertaken annually by the School. Any consequential adjustments to remaining useful life estimates are Implemented prospectively.·
Where assets.have separately identifiable. components that are subjed to regular replacement, these components are assigned useful lives distinct from the asset to which they relate and are depreciated a~rdingty: ·
Any expenditure thai Increases the originally assessed capacity or service potential of an asset Is capitalised and the new depreciable amount Is depreciated over tha rerru~lnlrig useful life of th.e asset to the.sch.ool. · ·
The depreciable amount of Improvements to or on leasehold land Is allocated progressively over the estimated useful lives of the improvements or the unexpired period of the lease, whichever is the shorter. The unexpired period of a lease Includes any option period where exercise of the option is probable.
For each class of depreciable asset the folloWing depreciation and amortisation rates are used: • Buildings 25..: 40 years -Plant and equipment 4-15 years
Impairment of Non-Current Assets All non-current · h leal assets are assessed for Indicators of im airmen! on an annual basis.
11
TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
11. Payables Trade Payables Fees In advance
2017 $
981,886 697,451
1,679,337
2016 $
1,007,152 651,514
1,658,666
Accounting PolleY " " , Trade credito~ are recognised upon receipt of the goods or serv,ices ordered and are measured at the agreed purchase/contract price, gross of applicable trade and other dis"coimts. Amounts owing are unsecured and,are generally settled on 30 day terms. These amountS represent liabilities for goods and services provided to the schoo,l prior to the end of financial year Ylhlch are unpaid. The amounts are unsecunid and are usually paid within 30 days of recof!nition. , , , " , "
Fees In Advance re resent the balance of eve aid a rent debtor accounts, which will be a lied a ainst student fees and levies in future eriods.
12. Other Financial Liabilities Current Bank Loan Secured (Queensland Treasury Corporation)
Non-Current Bank Loan Secured (Queensland Treasury Corporation)
1,509.468 1,509,468
14,827,345 14,827,345
1,425,199 1,425,199
16,295,867 16,295,867
Secured bank borrowings are through the Queensland Treasury Corporation (QTC) Australia and Includes a 3 year, 6 year, 12 year and 15 year debt pool. Interest on the loans calculated based on the rate charged by QTC on the principal borrowings are from 3.77% to 7.91% fixed as at 31 December 2017. Expected final payment dates vary from 9 November 2020 to 15 September 2035.
Accounting Polley Borrowings are classified as current liabilities unless the school has an unconditional right to defer settlement of the liability for at least 12 months after the balance date.
13. Accrued Employee Benefits Current Long Service Leave Annual Leave
Non· Current Long Service Leave
1,423,134 254,383
1,677,517
604,733
!Accounting policies for employee benefit liabilities are disclosed in Note 3. Comparative figures have been changed to reflect legal liability.
14. Asset Revaluation Surplus by Class Movements Asset Revaluation Surplus by Class Balance 1 January 2017 Revaluation increments Balance 31 December 2017
Balance 1 January 2016 Revaluation increments Balance 31 December 2016
$ Land
3,862,131 (9,800)
3,852,331
3,802,331 59,800
3,862,131
The asset revaluation surplus represents the net effect of upwards and downwards revaluations of assets to fair value.
12
Buildings 10,594,105
863,475 11,457,580
11,306,739 (712,634)
10,594,105
$
1,622,933 222,113
1,845,046
493,051
Total 14,456,236
853,675 15,309,911
15,109,070 (652,834)
14,456,236
TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
15. Commitments (a) Capital commitments
2017 $
Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows: Payable within one year: North Shore Campus stage 2 Parker Hall Building Toilet Renovation Paxton St Entrance Structure Rheuben Science GLA upgrade
(b) Lease commitments: Operating Leases Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: Within one year Later than one year and not later than two years Later than two years and not later than five years Commitments not recognised in the financial statements
195,160
195,160
659,455 661,796
66,590 1,387,841
2016 $
Operating leases are entered into as a means of leasing motor vehicles and IT equipment for the operations of the school. Lease payments are generally fixed, but with inflation escalation clauses on which contingent rentals are determined.
16. Contingencies Government capital grants contingent on a minimum of 20yrs occupation of the building: Later than 5 yrs: Block Grant Authority- North Shore Stage 2 (19yrs) Block Grant Authority- Yr 7 Flying Start (17yrs) Block Grant Authority- P21 JS Library (13yrs) Commitments not recognised in the financial statements
17. Related Party Transactions The following Trustees held office during the Year Ended 31 December 2017. S.Durward, J.Johnson, D.Giudes. B.McKay, G.Bell, A.Johnson, C.Cocklin. All dealings with Trustees were within normal trading terms and conditions.
403,750 489,175
1,975,740 2,868,665
88,178
243,793 72,878
404,849
608,325 680,003 139,236
1,427,564
425,000 517,950
2,127,720 3,070,670
The School utilised a company (Escape Travel) controlled by one of the Trustees for the majority of its travel arrangements. The fees and charges paid to the company are on an arm's length basis at the standard rates and discounts applicable to all their other customers. Invoices from the company are payable on account within 30days, with no security being required from the School. During 2017 travel expenses incurred from Escape Travel totalled $122,162. As at 31 December 2017 NIL is payable to Escape Travel.
18. Events Occurring After Balance Date No matter or circumstance has arisen since 31 December 2017 that has significantly affected, or may significantly affect the entity's operations. the results of those operations. or the entity's state of affairs in future financial years.
19. Other Information a) Boarders' Amenities accounts The school maintains an account for boarders' pocket money placed on deposit by parents. The balance of this account at 31 December 2017 is $86,399.29 and is not recognized as a cash asset by the School. Monies held in this account are for student's own use and any balances are refunded at completion of schooling.
b) Taxation i) Goods and Services Tax (GST) Revenues. expenses and assets are recognised net of the amount of GST. except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables in the Statement of Financial Position are shown inclusive of GST.
Cash flows are presented in the Statement of Cash Flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.
ii) Income Tax No provision for income tax has been raised as the school is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.
13
c) Critical Accounting Estimates and Judgements
TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
The preparation of financial statements necessarily requires the determination and use of certain critical accounting estimates, assumptions, and management judgements that have the potential to cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Such estimates, judgements and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods as relevant.
Estimates and assumptions with the most significant effect on the financial statements are outlined in the following notes:
Key judgements: Provision for impairment Included in trade and other receivables at 31 December 2017 is an amount receivable for school fees from various parents of students during the current financial year amounting to $299,660. The debts are currently in the hands of an external debt collection agency and a provision for impairment has been made for $299,660 at 31 December 2017.
Valuation - Land and Buildings Land and building valuation methodologies are detailed in Note 10.
14
STATEMENT BY
TOWNSVILLE GRAMMAR SCHOOL
These general purpose financial statements have been prepared pursuant to section 62(1) of the Financial Accountability Act 2009 (the Act), Division 60 of the Australian Charities and Not-for-Profits Commission Act 2012, relevant sections of the Financial and Performance Management Standard 2009, and other prescribed requirements.
In accordance with section 62(1 )(b) of the Act we certify that in our opinion:
a) the prescribed requirements for establishing and keeping the accounts have been complied with in all material respects;
b) the financial statements have been drawn up to present a true and fair view, in accordance with prescribed accounting standards, of the transactions of Townsville Grammar School for the financial year ended 31 December 2017 and of the financial position of the School at the end of that year; and
c) these assertions are based on an appropriate system of internal controls and risk management processes being effective, in all material respects, with respect to financial reporting throughout the reporting period.
STUART DURWARD CHAIRMAN
23/02/2018 23/02/2018
15
INDEPENDENT AUDITOR'S REPORT
To the Board of Trustees of the Townsville Grammar School
Report on the audit of the financial report
Opinion
I have audited the accompanying financial report of the Board of Trustees of the Townsville Grammar School.
In my opinion, the financial report:
a) gives a true and fair view of the entity's financial position as at 31 December 2017, and its financial performance and cash flows for the year then ended
b) complies with the Financial Accountability Act 2009, the Financial and Performance Management Standard 2009, the Australian Charities and Not-for-profits Commission Act 2012, the Australian Charities and Not-for-profits Commission Regulation 2013 and Australian Accounting Standards- Reduced Disclosure Requirements.
The financial report comprises the statement of financial position as at 31 December 2017, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes to the financial statements including summaries of significant accounting policies and other explanatory information, and the certificate given by the Chairman and the Secretary.
Basis for opinion
I conducted my audit in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of my report.
I am independent of the entity in accordance with the auditor independence requirements of the Australian Charities and Not-for-profits Commission Act 2012 and with the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code and the Auditor-General of Queensland Auditing Standards.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Responsibilities of the entity for the financial report
The Board is responsible for the preparation of the financial report that gives a true and fair view in accordance with the Financial Accountability Act 2009, the Financial and Performance Management Standard 2009, the Australian Charities and Not-for-profits Commission Act 2012, the Australian Charities and Not-for-profits Commission Regulation 2013 and Australian Accounting Standards - Reduced Disclosure Requirements, and for such internal control as the Board determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.
The Board is also responsible for assessing the entity's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless it is intended to abolish the entity or to otherwise cease operations.
Auditor's responsibilities for the audit of the financial report
My objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:
• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of the entity's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the entity.
• Conclude on the appropriateness of the entity's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. I base my conclusions on the audit evidence obtained up to the date of my auditor's report. However, future events or conditions may cause the entity to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
I communicate with the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.
In accordance with s.40 of the Auditor-General Act 2009, for the year ended 31 December 2017:
a) I received all the information and explanations I required.
b) In my opinion, the prescribed requirements in relation to the establishment and keeping of accounts were complied with in all material respects.
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