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Sunraysia Institute of TAFE ANNUAL REPORT 2015

TRAINING TO GET BACK TO WORK

Sunraysia Institute of Technical and Further Education 1>

The training services referred to in this report are delivered with Victorian and Commonwealth Government funding.CRICOS Provider Code: 01985A RTO Code: 4693

This report may contain the names, images and descriptions of people who have passed away and which may sadden and distress some Aboriginal and Torres Strait Islander people.

Accountable Officer’s declarationIn accordance with the Financial Management Act 1994, I am pleased to present the Sunraysia Institute of TAFE Annual Report for the year ending 31 December 2015.

Win ScottChief Executive OfficerSunraysia Institute of TAFE29/03/2016

Contents

SuniTAFE ... Start here, go far!

INTRODUCTIONAbout SuniTAFE 2 Board Chair’s Report 3Chief Executive Officer’s Report 4

OUR ORGANISATIONStatement of Performance 5

Our Year in Review 5 Customers 5 Education and Training 9 Business 10 Staff 12 Environmental Performance 13 Financial Performance 15

Future Directions 16Our Vision, Mission and Values 17

Governance and Organisational Structure 20

COMPLIANCE INFORMATIONStatutory Requirements and Statements 28Disclosure Index 29VAGO Statement of Performance 34

2015 FINANCIAL REPORTDeclaration Statement 32 Independent Auditor’s Report 33Comprehensive Operating Statement 35Balance Sheet 36Statement of Changes in Equity 37Cash Flow Statement 38

Sunraysia Institute of Technical and Further Education 32 >

ABOUT SuniTAFESunraysia Institute of TAFE (SuniTAFE) is one of the largest providers of vocational education and training in north-west Victoria. A small TAFE with a large reach, the Institute was established in 1980 as a result of the dream of local educators who saw the introduction of post-secondary education to the district as being integral to the needs of the growing community and regional industry.

InceptionThe Sunraysia College of TAFE, as it was known then, was the first purpose-designed and built TAFE College in Victoria. The College was designed not only to provide a quality teaching program that would meet the needs of the community and industry but also to provide training access to those living in remote regional areas of north-west Victoria. Indeed the construction of residential accommodation and the planning of childcare facilities were included in the very initial planning phase of the new college. This was unprecedented in Victoria at the time but was strongly fought for by the steering committee as being necessary to break down barriers to access for remote students.

Removing educational obstacles for regional and rural students was a significant driver for the initial establishment of the Institute. During the very early years of the Institute’s inception the vital role partnerships with other educational providers could play was recognised. Links and relationships were fostered with Ballarat University College, La Trobe University, Hawthorn Institute of Education, Victoria College and Deakin University. It is notable to mention that the SuniTAFE of today continues to enjoy strong links with all of these early partners although it might be through another entity.

SuniTAFE today is a vibrant institute with two main campuses located at Mildura and Swan Hill, rural campuses at Robinvale and Ouyen and a training farm at Cardross

near Mildura. Together these facilities provide vocational education and training for the people of Loddon Mallee north and beyond. Through the use of technology and a commitment to building educational partnerships that improve opportunities for students, the Institute’s reach now extends far beyond the boundaries of its geographic location.

Our regionLoddon Mallee North is a vast geographic area approximately 45,000 square kilometres in size, about 17% of Victoria’s total area. The population of Loddon Mallee North is projected to increase by 13% by 2031. Between 2011 and 2031, the highest growth is projected for the 65+ age group. The region’s aging population will require additional skilled health workers to meet the challenge of population increase. The region has a strong Indigenous heritage and a large Aboriginal population, and new skilled migrants are an ever-growing demographic in the region. Rates of international and humanitarian migration into the region have increased in recent years, stimulated by the Australian Government’s regional settlement programs and the Victorian Government’s Regional Migration Incentive Fund. The Loddon Mallee North region has a disproportionate number of communities and groups who experience disadvantage.

Training programsThese environmental factors have largely driven the development of SuniTAFE’s training delivery. Highest delivery occurs in the areas of community services, agriculture and production horticulture, general construction and repair, service and retail and health. These areas currently account for nearly one third of overall delivery at the Institute. The Institute’s community services and health training is providing skilled workers to meet labour shortages in aged care, disability services, early childhood development, nursing, allied health and community services.

Introduction

Our adult community and further education training provides students with training in areas such as language support, work education and general education, enabling students to further their employment opportunities and community engagement.

Traditional areas of delivery at the Institute have reflected the industry base of the region. These were predominately agriculture, horticulture, building, construction and associated trades, light and heavy automotive, community health, welfare, business and retail and hospitality services. While we still deliver in the traditional areas, there has been an increased focus on delivery in areas of regional skills shortage; Health Care and Social Assistance, Trades, Engineering and Agriculture.

More often qualifications are designed around providing students with pathways into further study. The Institute is continuing to diversify the way it provides services to the community with delivery occurring via a wide variety of modes including on-campus, off-campus, full and part-time, online, workplace based and skills recognition.

SuniTAFE received 7,252 enrolments in 2015. In delivering important vocational skills to the community and providing local businesses and industry with a skilled workforce SuniTAFE plays a key role in supporting the region’s economy.

SuniTAFE objectives, powers and functions are set out in our governing document - The Constitution of the Sunraysia Institute of Technical and Further Education. In 2015 the Institute reported to Parliament through The Hon. Steve Herbert, MP, Minister for Training and Skills, from 01 January 2015 until 31 December 2015.

The Board and staff of Sunraysia Institute of TAFE will remember 2015 as a year of building in all senses of the word. The Board commissioned four building projects one of which was operational before the end of the year. This was a new kindergarten for TAFE Kids, the Institute’s Childcare Centre, and the Minister for Families and Children, the Honourable Jenny Mikakos, officially opened the Centre in June 2015. As a result of the project there will be an additional twenty-two kindergarten places at the Centre from the beginning of 2016.

The next project to begin was an expansion project for the Swan Hill campus which includes a Learning Commons with student facilities, two nursing laboratories and two additional classrooms to accommodate the growing number of apprentices in the trades. In Mildura there will be a new Dulka Yuppata Cultural and Training Centre with additional training facilities and two nursing laboratories along with a refreshed front entrance to solve some of the campus access problems. These projects will all open in the first few months of 2016.

The next project to begin was an expansion project for the Swan Hill campus which includes a Learning Commons with student facilities, two nursing laboratories and two additional classrooms to accommodate the growing number of apprentices in the trades. In Mildura there will be a new Indigenous Cultural Centre with additional training facilities and two nursing laboratories along with a refreshed front entrance to solve some of the campus access problems. These projects will all open in the first few months of 2016.The business of SuniTAFE is also in a building phase. This has been assisted with funding from the State Government of Victoria through the TAFE Rescue and the Back to Work funds and the Board was pleased to welcome the Honourable Steve Herbert, Minister for Training and Skills,

to the campus to announce the funding grants. Four industry engagement projects were initiated as a result of the funding and the Institute has made good progress in building relationships with industry partners.

Later in the year, the Board welcomed Minister Herbert back to Mildura when he announced funding to create a Skills and Jobs Centre. This will provide further opportunities to engage with the community and industry through its central location in Mildura. Planning has progressed well and the Skills and Jobs Centre will be opened in early 2016. In the meantime, the services offered by the Centre have commenced on each of the Institute’s campuses and there is already a measurable increase in engagement and improvement in retention as a result.

The Board also built a new reporting framework in 2015 which led to more accurate monthly as well newly developed predictive financial reports. The Institute still has financial challenges but the Board has confidence in the management reports which provide a strong base for future planning. The educational delivery reports also provided solid data which enabled the Board to identify current trends and future opportunities.

I would like to thank the Board Directors for their commitment to the Institute in 2015. The composition of the Board has been very stable since 2013 and this continuity has been important in providing sound governance and stability during a time of organisational change. There will be significant changes to governance arrangements in 2016. In an environment of ongoing change, the Board of Sunraysia Institute of TAFE will be anticipating some continuity in Board membership to limit risk. This is especially relevant given that the Institute will be welcoming a new CEO in 2016.

SuniTAFE’s CEO Win Scott advised the Board that she would not be seeking a further term when her contract expires in June 2016. The Board began a recruitment process in November to select a new CEO and an appointment is expected in early 2016. There will be an opportunity to acknowledge Win’s ten year contribution before she leaves the Institute.

I would like to thank Win, the Executive team and the staff for their hard work and support in 2015. Feedback about the quality of our teaching programs is excellent and that reminds us of the reason we’re here – to provide training that leads to employment and pathways to higher education for the communities of north-west Victoria.

Leonie BurrowsBOARD CHAIR

Board Chair’s Report


The Institute is proud of the standard of our apprenticeship training which is evidenced by a completion rate of 95%. Apprenticeship enrolments grew by 6% in 2015 which is particularly pleasing when there is concern nationally about the decline in apprenticeship enrolments. I was asked recently about the reason for our success and I had no hesitation in saying that it’s the quality of our teaching.

Our teachers are committed and will go the extra mile to make sure that their students get the most out of their SuniTAFE experience. There are parts of our equipment and facilities that could do with an upgrade but student feedback is overwhelmingly positive about the quality of the teaching that they receive.

Even more importantly, the feedback from employers in the 2015 annual survey was very positive. The survey confirmed that SuniTAFE is delivering the skills that are needed in the workplace and reinforcing the students’ workplace experience through theory and practical training.

We have a great team of staff members at SuniTAFE – teachers, support staff and managers. I would like to thank them most sincerely for their commitment to the Institute. Thanks especially to the members of the Executive team –Tracey Forbes, Frank Piscioneri, Anthony Mills and Jenny Grigg. We’re fortunate to have a Board that supports us in sometimes difficult times and celebrates our successes with us. The Board Chair, Leonie Burrows dedicates many hours to SuniTAFE business and I really appreciate her advice and guidance. 2016 is shaping up to be a good year for SuniTAFE with the opening of new facilities and the Skills and Jobs Centre. We look forward to continued growth and success in the coming year.

Win ScottCHIEF EXECUTIVE OFFICER


Chief Executive Officer’s Report OUR YEAR IN REVIEWThe Year in Review section of SuniTAFE’s 2015 Annual Report provides a snapshot of its activities and achievements in relation to its strategic and operational objectives. The section highlights are summarised under the headings of:

> Customers> Education and Training> Business > Staff> Environmental Performance> Financial Performance

CUSTOMERSGraduate OutcomesThe National Centre for Vocational Education Research (NCVER) annual Student Outcomes Survey provides strong evidence of the Institute’s graduate satisfaction. The 2015 survey (of 2014 graduates) showed;• 84%ofSuniTAFEgraduateswereemployedaftertraining• 30%wereenrolledinfurtherstudyaftertraining• 88.5%ofgraduatesindicatedtheyweresatisfiedwiththe overall quality of their training• 89.5%ofgraduateswouldrecommendSuniTAFE

Each of these indicators of graduate satisfaction and success are above the Victorian TAFE average and Government Funded VET Victorian average satisfaction rates.

STATEMENT OF PERFORMANCE FOR 2015 In our opinion, the accompanying Statement of Performance of Sunraysia Institute of Technical and Further Education for the year ended 31 December 2015, is presented fairly in accordance with the Financial Reporting Directions.

The Statement outlines the performance indicators as determined by the responsible Minister, predetermined targets and the actual results for the year against these indicators, and an explanation of any significant variance between the actual results and performance targets.

As at the date of signing, we are not aware of any circumstance which would render any particulars in the Statement to be misleading or inaccurate.

Our Organisation

Leonie Burrows BOARD CHAIR Sunraysia Institute of TAFE29/03/2016

Win ScottCHIEF EXECUTIVE OFFICERSunraysia Institute of TAFE29/03/2016

Frank PiscioneriCHIEF FINANCE AND ACCOUNTING OFFICER and Company Secretary (Director Operations)Sunraysia Institute of TAFE29/03/2016

Recently I was part of a panel interviewing shortlisted candidates for awards for the Sunraysia Institute of TAFE 2015 Graduation and Awards ceremony. The candidates interviewed were for the Teacher of the Year Award and the Board Excellence Award. The graduating students and the teachers had much in common - their passion for their chosen industry, their energy and enthusiasm to do more and their loyalty and commitment to SuniTAFE. It was a wonderful reminder of the reason we’re in the business of providing vocational education and training.

In the 2015 Learner Engagement Survey, when asked to comment on positive aspects of their course, one student wrote, ‘the amount of knowledge and actual experiences the teacher had of the training and her passion for it’.

During the year I attended an event to acknowledge the shortlisted candidates for the Victorian International Student Awards. Once again the candidates were outstanding and there were many stories about the life-changing nature of their studies at TAFE institutes or other VET providers in Victoria.

SuniTAFE was very proud to have an International student shortlisted. Lai Poh Lee completed a Diploma of Hospitality at the end of 2015. Apart from her studies and her part-time work, Poh has become a passionate advocate for the Slow Food movement and she is now the Secretary of Slow Food Mildura – it’s great to see an International student from Malaysia so integrated into the Mildura community.

Several SuniTAFE apprentices collected industry awards in 2015. Student awards are a great reflection on the hard work and commitment of our students. They are also a great reflection of the hard work and commitment of our teachers and support staff.


GraduationGraduation ceremonies are held annually in March by both the Mildura and Swan Hill campuses. At the ceremony students received their graduation certificates and a number of students were recognised for their outstanding achievements. Presentations were made to winners of awards in categories across business units as well as in specialist categories. Of particular note in 2015 a range of awards were presented to students at regional, state and national ceremonies such as international student Lai Poh Lee, school-based apprentice (Electro technology) Elliot Grayling and Electrical Apprentice Makayla Harrison.

SuniTAFE’s first graduation ceremony for students completing the Federation University Australia degree program Bachelor of Applied Management was held in September 2015. The university had demonstrated its inclusive approach to higher education in the Sunraysia region by creating a degree program to meet the needs of the local community. The program’s facilitators come from the local Sunraysia area and couple very high standards of delivery with their extensive business knowledge to provide a rich experience for the students. This was the first higher education program delivered directly by SuniTAFE, others will follow as the Institute expands its range of offerings into other sectors.

Student AwardsLai Poh Lee One of three finalists in the Victorian International Education Awards 2015, International Student of the Year - VET category, Poh is an outstanding student who is well respected by her teachers in hospitality and well-liked by all who meet her. Completing an Advanced Diploma of Hospitality in 2015, Malaysian born Poh has been on quite a journey since arriving in Mildura in 2013 as a backpacker looking to re-skill and experience the Australian lifestyle. She studied a Certificate IV in Hospitality (Commercial Cookery) and Diploma of Hospitality and during this time received accolades for her achievements including being named the International Student of the Year for 2014 as well as receiving SuniTAFE’s Board Excellence Award. Working locally as a chef, Poh understands the importance of studying – in knowing how to cook good food skills in administration, management and budging are also necessary. Following her studies Poh plans to continue to live and work in Mildura.

Elliot Grayling Year 12 student Elliot undertook a Certificate III in Electro Technology – Electrician as a school-based apprentice. As part of his apprenticeship he also worked 10 hours a week at his father’s company Grayling Electrical. In his fourth year of trade school, Elliot has passed all modules, achieving top marks in his electrical licensing exams. He is the youngest person in Victoria to have sat these exams and the only school-based apprentice. He was recognised for his outstanding achievements by being named a finalist in the Australian School-based Apprentice of the Year Award at the 2015 Australian Training Awards after winning the School-Based Apprentice of the Year Award at the 2015 Victorian Training Awards. These awards follow the success of Elliot winning the Sunraysia Institute of TAFE Industry and Energy Education Unit Award and Apprentice of the Year Award for the 2014 academic year. The apprenticeship has taught him important skills including respect for the customer and responsibility. Elliot plans to go to university to study electrical engineering.

Makayla HarrisonOne of SuniTAFE’s four female electrical apprentices, Makayla was named the Regional Apprentice of the Year for 2015 at the Electrical Development Association of Victoria Awards. The awards recognise the achievements and contributions made by Victorian students within the electrical industry and provides them with an opportunity to further their professional development. Makayla joined Lower Murray Water in January 2013 as an Apprentice Electro Technology Electrician. During her time there she has been involved with a range of projects including Stage 1 of the Mildura Water Treatment Plant upgrade, and was chosen as SMGT’s June 2015 Apprentice of the Month.

Students Awards

Student Awards - 2015Elliot Grayling Certificate III in Electro technology Electrician (4th year apprentice, Grayling Electrical)

Finalist - Australian School-based Apprentice of the Year Award, 2015 Australian Training AwardsWinner - School-based Apprentice of the Year Award, 2015 Victorian Training Awards

Winner - Apprentice of the Year Award 2014, Sunraysia Institute of TAFE

Winner - Education Unit Award 2014, Industry and Energy, Sunraysia Institute of TAFE

Vimal Ram Diploma of Hospitality

Winner - International Student of the Year (VET/TAFE) Award, CISA Excellence Awards 2015

Shari Handy Certificate III in Business Administration (Trainee, Mildura Rural City Council)

Finalist - Koorie Student of the Year Award, 2015 Victorian Training Awards

Finalist - Koorie Student of the Year Award, VAEAI 2015 Wurreker Awards

Lai Poh Lee Advanced Diploma of Hospitality

Finalist - International Student of the Year Award, 2015 Victorian International Education Awards

Winner - International Student of the Year Award 2014, Sunraysia Institute of TAFE

Winner - SuniTAFE Board Excellence Award 2014, Sunraysia Institute of TAFE

Makayla Harrison Apprentice, Electro technology Electrician

Winner - Regional Apprentice of the Year Award 2015, Electrical Development Association of Victoria Awards

Liam Donnelly Certificate III in Light Vehicle Mechanical Technology (2nd year apprentice, Oasis Auto Services)

Winner - Apprentice of the Year Award, Bosch Service Network, Oceania region

SuniTAFE hospitality students - team Bronze Medal - AusTAFE state final, Bendigo

Kritika Devi Diploma of Hospitality

Winner - 2015 Chefs of the Future, Sunraysia Institute of TAFE

Karina Sullivan Certificate III in Aged Care

Winner - Trainee of the Year Award, 2014 SMGT Gala Awards

Winner - Trainee of the Month, January 2014, SMGT

Jamie Alchin Certificate III in Automotive Mechanical Technology - Agricultural

Winner - Education Unit Award 2014, Automotive, Sunraysia Institute of TAFE

Tim Ikafanga Certificate III in General Education for Adults

Winner - Education Unit Award 2014, Foundation and Further Education, Sunraysia Institute of TAFE

Dana Peirce Certificate III in Hairdressing

Winner - Education Unit Award 2014, Health and Wellbeing, Sunraysia Institute of TAFE

Candice Heyward-Spence Certificate III in Equine Industry

Winner - Education Unit Award 2014, Land and Environment, Sunraysia Institute of TAFE

Lisa Talbot (SuniTAFE teacher) Diploma of Vocational Education and Training

Winner - Education Unit Award 2014, Creative Industries, Sunraysia Institute of TAFE

Stephanie McCarten Certificate II in Animal Studies

Winner - VETiS Student of the Year Award 2014, Sunraysia Institute of TAFE

Leanne Owen Certificate II in Equine Industry

Winner - Koorie Student of the Year Award 2014, Sunraysia Institute of TAFE

Karen Hokai Certificate III in Horticulture, East End Community House

Outstanding Pre-accredited Learner Award, 2015 Learn Local Awards

Emory MarshmanSchool-based Apprentice, Certificate II in Automotive

Outstanding Achievement Award 2015, Skillinvest

Kynan MeyerSchool-based Apprentice, Certificate II in Automotive

Outstanding Achievement Award 2015, Skillinvest

Mitchel BarryApprentice, Certificate III in Agriculture Mechanical Technology

Best First Year Apprentice Award 2015, Skillinvest


Engagement and Retention Program In 2015 SuniTAFE implementation of the Engagement and Retention Unit to provide students with course guidance advice and attrition intervention strategies to ensure the best possible study and employment outcomes for students.

Course guidance advice and attrition intervention strategies have resulted in re-engagement of 31% of students who were identified as “at risk” in the final quarter of 2015.

Centralised Curriculum In 2015 the Education Division implemented a centralised curriculum function to provide teaching staff with the facility to efficiently maintain existing and develop new curriculum.

Although still in development, the centralised curriculum function has seen the preparation of several new programs for implementation in 2016. The employment of a Curriculum Development Officer has been instrumental in providing Education Managers with the support necessary to construct new programs in a timely way in response to industry or customer demand.

CommunitySunraysia Institute of TAFE is committed to delivering high quality training to its local community, industry and learners.

In 2015 the Institute and its staff continued to make significant contributions to the community through the provision of services in relation to learner support, delivery in thin and niche markets and through making available assets for community need. The Institute will prepare and implement its Community Services Expectations Plan in early 2016.

Strong community partnerships have long played a part in the operations of SuniTAFE. This is reflected in the number of organisations that share space at the Mildura campus. SuniTAFE is a campus partner with La Trobe University and the Murray Darling Freshwater Research Centre, we host the Sunraysia branch of University of the Third Age, the National Centre for Sustainability and the Sunraysia branch of Men’s Shed as well as TAFE Kids, an incorporated childcare centre. In order to improve the educational options for the students of SuniTAFE the Institute actively seeks out partnerships that add value to both the community and the Institute. SuniTAFE is also actively involved in its local communities through staff representation on local boards and committees.

SuniTAFE is a proud supporter of many community projects; in 2015 GJ Gardner Homes purchased 215 trees for the Conservation and Land Management students who were planting trees at the Etiwanda Wetlands as part of their studies. This in turn assisted the custom builder to achieve their goal of reducing its carbon footprint by planting trees for every new home it builds.

SuniTAFE has a social enterprise partnership with the Christie Centre (provides service to people with disabilities). The students were engaged in propagating seedling stock to be planted at the SuniTAFE Farm. Approximately 1000 rosemary seedlings have already been planted and further plantings of other varieties are planned. The project aims to eventually produce commercial quantities of herbs for the local and interstate markets.

Fundraising Throughout 2015 SuniTAFE staff and students undertook a number of community fundraising activities and raised over $5400. Receiving organisations included The Sunraysia Cancer Resource Centre, Cancer Council (Australia’s Biggest Morning Tea and Girls’ Night In events), Earthquake survivors in Nepal and Mallee Family Care Christmas Toy Appeal.

In May Nepalese students held two events at the Mildura Campus to raise funds for earthquake survivors in Nepal. A BBQ and separate luncheon in the SuniTASTE training restaurant were held. The Nepalese students together with the wider Nepalese community of Mildura were pleased with the generous donations received.

SponsorshipThroughout 2015 SuniTAFE was a sponsor of numerous events including:> Murray River International Music Festival> Mildura Wentworth Arts Festival> Mildura Writers Festival> Mildura Palimpsest Biennale > Mildura Jazz Food and Wine Festival> Australian Print Triennial> SARG Paws Along the Murray> Mildura Country Music Festival> whitecubemildura > La Trobe University Arts - Culmin8

TAFE Kids Inc. In June 2015 The Hon. Jenny Mikakos, MLC, Minister for Families and Children, officially opened the $287,000 extensions to the TAFE Kids Inc. Childcare Centre. The new 22 place facility now offers Kindergarten programs for both three and four year olds

and vacation care programs. Built with the assistance of a grant through the Victorian Government Early Learning Facilities Upgrade Fund, the extensions also included renovations to the existing facility including a new bike racing track in the playground. During construction the child size ‘peephole’ made by the builders in the temporary playground fence proved very popular with the children. TAFE Kids is a community based, not for profit childcare centre providing care to local children aged six weeks to six years. The centre is a controlled entity of Sunraysia Institute of TAFE. Refer to the audited

Financial Report; Note 22.

Swan Hill Eco Demonstration HouseA number of community presentations and events were held at the Swan Hill Eco-Demonstration House in 2015. These included presentations on energy saving initiatives, participation in National Sustainable House Day (open day event), and the Sustainable Living Festival. There was strong community support at these events and the Institute continued to build community support for sustainable building initiatives and interest in sustainable housing with demonstrations of the lightening tower (built by SuniTAFE apprentices), solar air vents, solar water pumps for ponds and other devices.

EDUCATION AND TRAININGTraining DeliveryIn 2015, in contrast with the trend across the state, apprenticeship growth was strong. In 2015 local VTG apprenticeship enrolments equated to 31% of total enrolments, a 6% increase in enrolments from 2014. Further to this, the module load completion rate for apprentices was high at 95.26% (93.56% for first year apprentices).

Another positive result in 2015 was the increase in local delivery overall (2%), particularly in light of the Institute’s move away from subcontracting arrangements. In order to maintain its ongoing sustainability the Institute continued to review its programs for efficiency whilst

maintaining the quality and volume of learning. Those programs assessed as ‘at risk’ were retained by implementing blended and project based delivery were added to delivery modes to increase accessibility and maintain the presence of SuniTAFE in those industry areas. SuniTAFE specialises in face-to-face delivery resulting in quality training delivery and high student completion rates (85% MLCR in 2015).

A number of high profile seminars were delivered in 2015 with strong community interest. Seminars were held in the areas of health, land and environment and design. Each was conducted in collaboration with the Mildura Rural City Council, Swinburne and La Trobe University. The seminars have increased the Institute’s profile in the community as a provider of industry specific skills set training, a solution often sought outside the region by industry, learners and the wider community.

In late 2015, 160 St Joseph’s College students visited the SuniTAFE Farm over a two day period. They experienced sessions covering water testing using microscopes, soil nutrition, plant and pest identification, farm tours and were given an overview of the horticulture and environmental industries and associated career opportunities. Both days were very successful and the feedback from both students and staff was positive and potentially leading future enrolments.

The Institute’s collaboration with La Trobe University to deliver the Bachelor of Creative Arts was a successful initiative that was

established to meet a community need in this thin market. The first year of the degree, which was delivered by SuniTAFE, had a strong retention rate and feedback from students was positive. In 2016 the 11 students who completed the first year of the degree will continue into the second year of the course with La Trobe.

International Students International students are drawn to the Institute due to its unique regional position, course offerings and range of pathways to universities. SuniTAFE is a Streamlined Visa Processing Provider and has strong ties with La Trobe University and range of other universities with various pathway options for students.

In 2015 there were 131 onshore International student enrolments, with the student body representing 15 countries including a majority of students from China and Nepal. International student marketing activities included attendance at education exhibitions in Vietnam and the Philippines in April, and ongoing liaison with the Institute’s agent representative network. An agent forum was held at the Institute in March and was attended by four agents from China, India, Taiwan and Melbourne. The agents were provided an insight into the Institute’s facilities, resources and staff, curriculum and an introduction to VET education in an Australian context. The participants were also given tours of the region to enhance their understanding of Mildura as a setting for International students. In September 2015

Jane Zhang, International Marketing Coordinator had the opportunity and privilege to meet Her Excellency, the Honourable Linda Dessau AM, Governor of Victoria and Yunnan delegation from China at an invited luncheon at Government House in September. The Yunnan delegation was composed by the Vice Governor of the Yunnan Province, University Presidents and the Vice Director General of the Yunnan Provincial Department of Education.

Our Year In Review

The Hon. Jenny Mikakos together with Board Director Danny Grzan unveiling the plaque at the official opening of the TAFE Kids Inc. Childcare Care extensions.


Indigenous cohortIn 2015 SuniTAFE recorded 340 self-declared indigenous enrolments and 70,265 student contact hours, an increase of 3.5% from 2014. In total, 23 indigenous students undertook more than one enrolment, and module load completion rates increased by 2.5%. The Institute is committed to growing our indigenous cohort by keeping students engaged and the retention of students.

Trends 2013 2014 2015

MLCRforstudentswithadisability(Gov’tFunded)% 76.1 71 71

Passrateforstudentswithadisability(Gov’tFunded)% 80.9 79 80

No. of enrolments of people with a disability 543 591 543

Total Institute enrolments 15,013 9,937 7,252

Participationrateaspercentageofenrolments% 3.62 5.95 7.49

Disability Access

BUSINESSA comprehensive course review was conducted in 2015 resulting in the modification to program delivery in some areas and in some staff contributing to projects considered outside their primary role. Several Institute-wide working parties were established in 2015 to review issues that were impacting broad sections of the organisation. This enabled a holistic approach to a variety of problems and resulted in innovative and cost effective /productive solutions.

Key Performance Indicators

Description and methodology 2015 Target

2015 Actual

Explanation of variances

Prior year result

Training Revenue diversity Breakdown of training revenue split by Government funded and Fee for Service

Training revenue split by:• Victorian Training Guarantee (VTG)• Fee for Service (FFS)

86%14%

73%27%

1

78%22%

Employment costs as a proportion of training revenue

Employment and Third Party training delivery costs as a proportion of training revenue (VTG and FFS)

Employment costs + 3rd party training delivery costs/ Training Revenue

89% 109% 2 122%

Training revenue per teaching FTE*

Training Revenue (excl. revenue delivered by third parties) per Teaching FTE*

Training Revenue (excl. revenue delivered by 3rd parties) / Teaching FTEs*

$91,891 $156,231 3 $149,725

Operating margin percentage

Operating margin %

EBIT excluding Capital Contributions) / Total Revenue (excl. Capital Contributions)

6.2% 2.7% 4 (33.6%)

Return on Investment (non-current assets) 33.63% 20.37% 5 (20.93)% Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA)

= Earnings before Interest, Taxes and Amortisation (EBITA)

$12,949,304 $8,167,000 6 ($9,417,491)

Module load completion rate

85% 85% 86%

Operating revenue = Total revenue $31,756,074 $31,464,929 7 $24,022,695 Net result = Net result $11,254,542 $6,241,428 8 ($10,651,297)Number of Indigenous enrolments

Student enrolments 400 340 9 507

Total Number Institute students

Individual student numbers 7,500 5,878 10 8,239

Total Institute enrolments

Number of enrolments 10,000 7,252 9,937

Number International students

Individual student numbers 250 131 11 163

Participation of 15-24 year old students

Individual student numbers 2,500 2,818 12 3,162

Working capital ratio = Current Assets*/ current liabilities** 1:1 1.5 13 0.66 : 1

Notes:1. VTG revenue increased by 4% from 2014 and FFS has increased by 33%. Overall training revenue increased by 11% or $1.3m.2. Training revenue was below budget by (29%) and employment, third party costs 14% below budget.3. Training delivery revenue excluding 3rd parties was below target by (19%). A slight increase from 2014.4. A significant turnaround from 2014 to 2015 due to additional training revenue and grant funding.5. Demand driven and capital funding received was below budget.6. Demand driven partnership income did not meet target by ($4.1m) / (54%). Received back to work funding of $1.8m. Training Partnership expenditure was below budget by

46%. Salary costs were 6% below budget. Capital funding below budget by ($3.56m)7. Demand driven partnership income did not meet target by ($4.1m) / (54%). Received back to work funding of $1.8m. Also received grant funding.8. Demand driven income below budget by ($4.1m) contributed significantly to the variance to the target. The major turnaround from 2014 is the additional grant funding

received in 2015 and as well as a slight increase in training revenue.9. The 317 self-declared indigenous students equated to 340 enrolments and 70,265 student contact hours; training delivery increase of 3.5% indicating that a greater number

of students undertook extended programs in 2015. The Institute is committed to growing our indigenous cohort by keeping students engaged and focusing on the retention

of students.10. Decreased subcontracted delivery, however, there was a positive increase (2%) in local enrolments/delivery.11. Students enrolled in multiple qualifications however there were fewer students than anticipated. Strategies are in place for growth in enrolments for 201612. Apprentice student numbers increased by 12% from 2014 which contributed to the increase in students in the 15-24 year old age group.13. Additional grant funding received in 2015.

SuniTAFE CEO Win Scott headed a delegation to visit partner organisations in China where a Memorandum of Understanding with Dali University and Dali Health School (located in Dali, Mildura’s sister city) was renewed. In addition agent training and communication took place in Wuhan and Hong Kong.

SuniTAFE international students continue to achieve success with hospitality student Lai Poh Lee being nominated as a finalist in the Victorian International Education Awards in 2015.

Coordinator Hospitality, Brad Fyfe, spent six weeks in China in 2015 as the first foreign expert to the Dali VET Technician College. Brad assisted the college to develop a program for western cookery and assisted in its delivery. Training was delivered to two groups of 15 students from the college who were selected due to their high results and excellence in Chinese cuisine. This program provided an excellent opportunity for the students to learn from Brad who has a wealth of knowledge and an incredible passion for local fresh food in the Mildura region.

The Institute does not conduct any offshore activities.

Key Performance IndicatorsThe following table details the Institute’s business performance in 2015 across the organisation in line with the Directions set out in the Minister’s Annual Statement of Expectations.


STAFFAll Institute staff have the ability to participate in the Strategic Planning process at a Business Unit and Divisional level. Staff are actively engaged to determine how their unit will address the Institute’s and division’s Strategic Key Performance Indicators. Furthermore, engaging staff in the course review process throughout 2015 provided them with valuable information regarding the viability of particular programs and in modifying program or delivery options for an efficient, quality outcome.

Promoting a healthy workplace SuniTAFE promotes a healthy workplace and by doing so improves staff engagement and productivity. In 2015 SuniTAFE participated in the Healthy Together Mildura Community 10,000 Steps Challenge. Two staff teams participated in the five week challenge to ‘sit less’ and ‘move more’ with the aim of reaching 10,000 steps per day. Over 70 teams from across the region registered and collectively the teams took 189,981,042 steps with the overall average of 9,707 steps per person per day. Both of the SuniTAFE teams made the top 25 list.

In 2016, SuniTAFE will be working with Healthy Together Mildura to develop further initiatives to promote health and wellbeing in the workplace.

Staff Development > Specialist Scholarship Recipients: Trish Kelly and Ross Goonan> Teaching Fellowship Recipients: Chris Zhong> Workforce Development: Education Business Unit – Business Improvement Pilot: Ross Goonan> Diploma of VET scholarship Recipients: Neva Denham, Nadine Robinson, Lisa Talbot, Chris Zhong, Andrew Carmichael, Devon Andrews, Shane O’Shannassy.

Staff QualificationsAs at 31 December 2015 89% of teaching staff held a graduate or post graduate qualification (AQF level 5 or above). This result was 27% higher than the Institute’s target for the year and a positive indicator of success of the Institute’s workforce development strategy. Additionally, 97% of teaching staff hold a Certificate IV TAE.

In 2015 SuniTAFE teaching staff were again assisted to upgrade their skills through our Professional Development Program with seven staff enrolled in the Diploma of Vocational Education and Training Practice. In addition two PAACT staff achieved their Diploma of Management; Jacinta Hosking and John Jackson.

Service AwardsAt SuniTAFE we pride ourselves on being an employer of choice, this is reflected in the length of time our staff choose to remain with us. In 2015 the following staff reached significant service milestones:

20 YEARSKylie Rogers, Alan Box.

15 YEARS Mark Hull, Ross Goonan, Megan Stewart, Karen Kelly, Jill Dowdy, Prue Taylor, Jenny Heaslip.

10 YEARS Anthony Mills, Peta Job, Paul McClure, Gabrielle Schammer, Jeff Muller, Linda McKinnon, Craig Hocking.

5 YEARS Naomi Tidswell, Abby Carn, Sophie Cook, Emily Walshaw, Karen Vincent, Racheal Fyfe, Ross Humphreys, Tania Felton, Kassie Hocking, Deidre Reid, Elena Pelle, Kelly Vale, Nardia Baker, Gail Groat, Colin Moore (vale).

VALEColin Moore Staff across the Institute were deeply saddened to hear of the passing of their friend and colleague Colin Moore. Colin passed away on 8th September 2015 after a long illness. Colin commenced at the Institute on the 22nd March 2010 and had been a valued member of the Finance Team. He was always happy and had a great love for sport and his family.

Environmental Data Unit Measure

2014 2015 Greenhouse Gas Emissions

CO2-e

%

Energy Electricity 1 kWh 1716405 1610262 2153.60 -6.18

Natural Gas 2 Megajoule 3050469 3165484 174.90 3.78

LPG 3 Megajoule 377641 328572 18.19 -13.0

Green Power 4 kWh N/A N/A - -

Renewable 5 kWh 294824 283184 - -3.95

Waste Landfill Tonne 53.91 50.82 - -5.73

Recycle 6 (cardboard, paper, glass, cans) Tonne 11.48 12.39 - 7.93

- Metals 7 Tonne 10.4 9.47 - -9.0

- Engine oil 7 Litres 3200 900 - -71.5

- E-waste 7 Units 349 573 - -64.2

- Miscellaneous Equipment 7 $ 5246.00 6024.72 - 14.8

Paper

Plantation A4 Ream 118 54 - -54.2

50% recycle A4 Ream 2480 2853 - 15.0

80% recycle A4 Ream 478 553 - 15.7

Water (metered) Domestic Kilolitres 20995 23097 - 10.0

Reused Kilolitres 532 532 - -Fuel Unleaded Petrol Litre 29933 28311 64.58 -5.42

Diesel Litre 26467 20905 55.84 -21.0Travel Vehicle km 583472 506344 - -13.2

Air km 292890 288257 96.7 -1.58Greenhouse Gas Emissions

Electricity, gas, fuel, air travel 8 Tonnes CO2-e

2291 2566 - 12.1

ENVIRONMENTAL PERFORMANCE

Notes:

ENERGY

1. Electricity - a review of equipment operating times combined with behavioural

change has resulted in reduced consumption.

Sites: Mildura Campus, NCS, SuniTAFE Farm, Swan Hill and Robinvale Campuses.

Prior to 1st July 2014 the annual national ACI (Average Carbon Intensity) value

used to calculate electricity emissions was 0.864. The Victorian state

based value now used to calculate electricity emissions has changed from

0.8645 to 1.34.2. Natural Gas – colder weather during winter saw a slight increase in

consumption figures.

Sites: Mildura Campus and NCS.3. LPG – SuniTAFE Farm consumption decreased due to reduction in dried fruit

processing requirements.

Sites: Mildura Campus, SuniTAFE Farm and Swan Hill Campus.4. Green Power - no longer purchased due to the installation of 178 kW of PV solar

panels across 3 sites (Mildura Campus, NCS and Swan Hill Campus). This was

completed in 2014 as part of the Greener Government Building Project.5. Renewable Energy - the 178 kW PV solar panels are now operational across all

three sites. Original renewable energy generation was from 4 x 1.75 kW PV solar

systems which are still in operation.

Sites: Mildura Campus, NCS and Swan Hill Campus. PV Solar system 4 x 1.75kWh

WASTE6. Recycle - total waste has decreased by 3.3%, recycling practices have improved

and the amount of paper sent to shredding bins has increased by 1705kg.

Sites: Mildura Campus only (recorded as contractor weighs all waste). 7. Additional inclusions -

• Metals – the engineering, plumbing, automotive, and SuniTAFE Farm

departments recycle all metals.

• Engine oil – automotive department recycles oils via a ‘recover and reuse’

waste oil company which re-refines oil.

• E-waste – computers, monitors, servers, electronics, mobile phones all

sold/recycled.

• Miscellaneous equipment – obsolete equipment, furniture and unrequired items

sold through online auctions.

Sites: Mildura Campus, SuniTAFE Farm and Swan Hill Campus.

Notes (CONT):

GREENHOUSE GAS EMISSIONS8. Calculated only on electricity, gas, fuel and air travel. Total emissions show an

increase due to Natural Gas usage and 1st semester electricity comparison periods

2014/2015. The revised value for Victorian electricity emissions which increased as

of 1st July 2014.

Sites: Mildura Campus, NCS and Swan Hill Campus. Prior to 1/07/14 the annual

national ACI (Average Carbon Intensity) value used to calculate electricity emissions

was 0.864. The Victorian state based value now used to calculate electricity

emissions has changed from 0.8645 to 1.34.

FUTURE TARGETS The targets for electricity and natural gas consumption have been estimated for

2015/2016 (period of one year) as per the Green Government Building Project.

Electricity: 5% reduction for 2015/2016 (one year from all systems transitioning

to online).

Natural Gas: 5% reduction for 2015/2016 (one year from all systems transitioning

to online).

2016 targets for all other environmental aspects have been set at 2015 achieved

results - as reported above table.

The Hon. Steve Herbert together with our award winning students Karen Hokai, Joel Schwarz, Lai Poh Lee, Elliott Grayling and Vimal Ram.

The Hon. Steve Herbert together with Lai Poh Lee, Brad Fyfe, hospitality teacher, Annette Whittaker, Project Manager for International Students Unit at the Victorian International Education Awards.


Full Time Equivalent Staff & Students (FTE) 2014 2015

3671 3074

Per FTE Per Square Metre Per FTE Per Square Metre

Power (Megajoules/h) 1 467.56 68.46 523.83 64.23

Power CO2-e (Tonnes) 0.50 0.07 0.70 0.09

Natural Gas (Megajoules) 830.96 121.67 1029.76 126.26

Waste (Kg) 2 17.81 2.61 20.57 2.52

Paper (Ream) 3 0.84 N/A 1.13 -

Water (Kilolitres) 4 5.72 0.84 7.51 0.92

Fuel (Litres) 5 271.15 N/A 243.64 -

Air Travel CO2-e (Tonnes) 0.57 N/A 0.48 -

FTEfigures:Basedontotalnumberofstaffandstudentsusingfacilities

Notes:1. Energy Use

Energy data is captured in kWh - converted to megajoules using rate of 1 kWh = 3.6 MJ/h.

Square metre figures are calculated for total campus facilities used including office space.2. Waste Production

Waste data is captured in tonnes – converted to kilograms using rate of 1 Tonne = 1000 Kg for FTE.

Recycling waste has increased to 19.5% of total waste.3. Paper Use

Units of paper have been calculated using staff and student FTE total. 4. Water Consumption

Units of metered water calculated for both FTE kilolitres and square metre. 5. Transportation

Fuel data captured in litres.

Fuel and Air Travel CO2-e have been calculated using staff figures only for FTE.

All campuses are located in regional and rural areas, many staff and students travel from regional areas to sites where there is limited public transport.

GREENHOUSE GAS EMISSIONS(Refer to column in Environmental Data table).Fuel and air flight emission totals have reduced.

LPG emissions have decreased due to seasonal changes in farming operations. Electricity emissions show an increase due to change of the annual national ACI (Average Carbon Intensity) value of 0.8645 to the Victorian state based value of 1.345 (brown coal) which is now used to calculate Victoria’s electricity emissions, this commenced 1st July 2014.

Consolidated Entity ($’000) 2015 2014 20013 2012 2011

Operating Revenue 36,886 24,023 43,949 30,301 28,384

Operating Expenses 30,431 31,709 41,954 30,215 29,819

Operating Result before Other Economic Flows 6,455 (7,686) 1,995 86 (1,435)

Other economic flows included in Net Result (214) (2,965) - - -

Operating Result after Other Economic Flows 6,241 (10,651) 1,995 86 (1,435)

AccumulatedProfit(Deficit)b/f1stJanuary 5,064 15,715 13,720 13,634 15,069

Transfers from Reserves - - - - -

Transfers to Reserves - - - - -Transfer to Contributed Capital - - - - -

AccumulatedProfit(Deficit)31stDecember 11,305 5,064 15,715 13,720 13,634

Summary of Significant Changes to Financial Position during the Year For the financial year ended 31st December 2015, the Institute recorded a consolidated profit of $6,241,428. Total income achieved for 2015 was $36,885,000 compared to $24,023,000, for 2014. Excluding capital income, operating income has increased by $7,729,282 which is an increase of 31%. Expenditure for 2015 totalled $30,431,000 compared to $31,709,000 for 2014, a decrease of $1,278,000 which is a decrease of 4.0%.

Overall employee benefits increased by $85,000, an increase of 3.0%, and non-salary expenses decreased by $2,937,000 for 2015, a decrease of 19%.

Financially 2015 was a challenging year for the Sunraysia Institute of TAFE. The Institute did meet some revenue targets, returning an operating profit of $6,241,428. There have been no events subsequent to balance date which would adversely affect the operations of the Sunraysia Institute of TAFE in subsequent years.

The financial information provided in this report is consistent with that provided in the Financial Statements.

FINANCIAL PERFORMANCE


Future Directions

Growth in health delivery Health and community services training will be a major focus for the Institute in 2016 and beyond. Two purpose built practical nursing and aged care training facilities at both Mildura and Swan Hill campuses will be operational in 2016 to alleviate the demand for nursing applications and provide opportunity to deliver more specialised training to students and industry.

The additional learning spaces will allow the Institute to increase delivery at diploma and advanced diploma level and develop new placement partnerships.

The Institute will be expanding delivery in the areas of allied health and youth work in 2016.

AARNET In 2016 AARNET will become SuniTAFE’s internet provider and this will enable extended connectivity. The capacity to deliver new programs will be assisted by a regional TAFEs collaborative e-learning project which is led by GO TAFE and coordinated through the Victorian TAFE Association.

Apprenticeship and traineeship growth Minister for Training and Skills, Steve Herbert visited the Mildura Campus in November and announced $1 million in funding to help support the Institute to deliver important, relevant training and to drive growth in apprenticeships and traineeships.

It will also help the Institute better meet the employment needs of the community and industries by providing relevant skills to meet the needs of the changing economy.

Training partnership growth Beginning in February 2016, SuniTAFE will partnering with William Angliss Institute to deliver the Regional Tourism Employability Program. SuniTAFE will have access to expertise in tourism, hospitality and events to deliver a range of specialist courses in tourism, hospitality and events to equip graduates with skills to be job ready. Students will be able to continue living in the region, while gaining practical skills and specialist knowledge to drive regional hospitality and tourism to a more competitive level.

Growth in Indigenous courses Work commenced late in 2015 on the development of the new Dulka Yuppata Cultural and Training Centre at the Mildura Campus’s existing site. Funded by the Victorian Government, the project will provide the campus with a new specialised training centre to accommodate ongoing growth in Indigenous courses including health, education and the arts. This will include training spaces, a reception/administration area and staff offices. Extensive consultation with the Koorie community and staff has taken place to ensure that the new facility aligns with future needs and to assist in the development of SuniTAFE’s 2016 Education Plan. International growth In order to grow its international student program, SuniTAFE continues to develop a range of new pathways with universities, particularly La Trobe through our status as a Streamlined Visa Processing Provider. In addition, closer ties with La Trobe University will soon see SuniTAFE becoming an ELICOS Centre for the university.

Several activities are planned for early 2016, including a visit by 15 ELICOS students from Wuhan, an agent’s forum, and a China Study Tour which will incorporate a Teacher Exchange Program.

Early in 2016 SuniTAFE will be hosting a delegation from China which will see six of the original 2007 Chinese Visiting Scholars from the Yunnan Agricultural University returning for a reunion. This visit displays the strong ties SuniTAFE has withheld with the University since the Visiting Scholars Program commenced.

Left: Leonie Burrows, Win Scott and Michael Schooneveldt, Senior Manager for International and Higher Education together with the first graduate group of the Bachelor of Applied Management.

Our VisionSuniTAFE will deliver education and training that creates career opportunities and pathways to university.

Our MissionTo be an outstanding service provider, working in partnership with students and customers to achieve their goals.

Our ValuesWe value learning excellence, innovation and integrity and the needs of our customers are important to us.

GOVERNANCE AND ORGANISATIONAL STRUCTURE Sunraysia Institute of TAFE is governed by a Board of Directors, established by the Order in Council titled the Constitution of the Sunraysia Institute of Technical and Further Education Order 2013, made under section 3.1.11(2) of the Education and Training Reform Act 2006.

Through the Higher Education and Skills Group, the Board is accountable to the responsible state Minister. The responsible Minister in 2015 is detailed in Note 20 (I) of the financial statements.

The Board is charged with responsibility for ensuring the Institute performs its duties for the public benefit, within the context of the functions, powers and duties conferred upon it by the Constitution, applicable Law and subordinate instruments, and relevant industrial awards.

OUR VISION OUR MISSIONOUR VALUES

The objectives of the Board are:• to ensure the delivery of high quality education and training programs and services in the north-west region of Victoria, south-west region of New South Wales and the Riverland region of South Australia;• to ensure that the provision of programs and services are responsive to the needs of Institute clients, promote the competitiveness of industry, enhance the opportunities of individuals, and exceed the expectations of the community; and• to govern the Institute efficiently and effectively, ensuring appropriate compliance and risk management frameworks are effected, and resources are used prudently solely in the Institutes’ and the public interest;

The Board’s duties include:• establishing vision, mission and strategic directions for the Institute and ensuring the Institute operates in accordance with

its strategic and business plans;• ensuring compliance, risk management and reporting frameworks are in place and controls are implemented and regularly tested;• the making, amending and revocation of rules for the good order and management of the Institute;• evaluating the performance of the CEO and managing all matters in relation to the CEO’s employment contract; and• regularly evaluating the performance of the Board and individual directors to ensure the Board is achieving its purpose.

The Board of Sunraysia Institute of TAFE is committed to ensuring effective governance practices that reflect accountability, transparency, professional integrity, and ethical behaviour within an inclusive framework based on trust and honesty. The Board executes its duties in accordance with the Public Sector Director’s Code of Conduct.

Board Directors inspect progress of building works at the new nursing and aged care training facilities.


Board Chair – Leonie BurrowsMinisterial Board Chair, appointed 16 April 2013

Leonie is an experienced Management Consultant and Company Director who also has local government, horticulture and education CEO experience. She has extensive skills in leadership, financial management, governance and project management. In her consulting business, she specialises in organisational analysis, strategic planning, business planning, research and training and facilitation. Leonie is also a partner in Burrows Jewellers retail business.

Leonie is a current member of the Institute’s Audit, Finance and Risk Committee, the Governance Committee, TSAF Project Control Group, and TAFE Kids Inc. Project Control Group. Leonie is a very active member of the community and heads a number of Boards and Committees, with positions including; Chair, Victorian TAFE Association Chair, Sunraysia Community Health Services Director, Murray Primary Health Network Committee Member, Loddon Mallee Regional Development Australia Committee Member, Northern Mallee Leadership Program Chair, Organising Committee, 2016 Victorian State Fire Brigade Championships

Board Directors in 2015Mrs Leonie Burrows (Chair)Ms Trudie ChantMr Geoffrey DeaMr Danny Grzan (term concluded 31 March 2015)Mr Terry JenningsMr Rodney MarkwellMs Kay MartinMs Amanda Phillips (appointed 1 December 2015)Mr Owen RussellMs Lydia Senior (appointed 1 December 2015)

Committees of the BoardThe Board has established an active committee structure that capitalises on the skills and experiences of individual Board Directors. The Committees are established to assist the Board in meeting its constitutional duties in the management of the Institute through the application of sound corporate governance practices.The Board committee structure is subject to annual review and committees have clear objectives and terms of reference which are consistent with the corporate governance objectives of the Board. The Committees are led by the Board and are not management driven, and operate in accordance with the following guidelines:• All members are non-Executive Directors • All members are independent members• The Chairperson of the Board cannot be the Chairperson of a Committee • The Chair of each Committee is selected annually by the Board Chair and endorsed by the Board.

Governance Committee membership (as at 31 December 2015)Ms Kay Martin (Chair) Mrs Leonie Burrows (Board Chair)Ms Trudie Chant Mr Danny Grzan* Mr Terry Jennings Mr Owen RussellMs Lydia Senior (from 1 December 2015)

* Mr Grzan was a member of the Governance Committee until he concluded his board term on 31 March 2015. He was subsequently co-opted to the committee from 1 April 2015 to 30 November 2015 inclusive.

The Governance Committee assists the Board to oversee the Institute’s corporate governance and ensure compliance with the Institute’s statutory obligations. The Committee has stewardship of maintaining an appropriate governance framework and driving a corporate culture of accountability, integrity and transparency,

ensuring that appropriate compliance processes are in place, managing the processes of recruitment, induction and performance review of Board Directors, making recommendation to the Board on all matters relating to the CEO’s employment and executive remuneration matters, and reviewing new and existing Institute policies.

Audit, Finance and Risk Committee membership (as at 31 December 2015)Mr Geoffrey Dea (Chair) Mrs Leonie Burrows (Board Chair)Mr Rod Markwell Ms Inga Dalla Santa (co-opted)Ms Amanda Phillips (co-opted 24 February 2015 – 30 November 2015. Member from 1 December 2015)

The Audit, Finance and Risk Committee links the Board with the Institute’s continuous audit program, and provides advice and recommendation on matters pertaining to financial and risk management strategies. The Committee is charged with responsibility for overseeing the scope and execution of the internal audit plan, reviewing the integrity and effectiveness of the Institute’s financial reporting systems and controls, monitoring the effectiveness of the Institutes processes for ensuring compliance with its fiduciary and statutory obligations in relation to financial reporting, oversight of the preparation of financial statements and other published financial data, conducting regular reviews of the Institute’s Risk Management Framework, strategic risk register and Fraud Management Plan, ensuring appropriate management of matters pertaining to risk and fraud control, and reviewing new and existing financial and accounting policies and procedures.

ORGANISATIONALMANAGEMENTChief Executive OfficerThe Directorate is responsible for implementing the strategic direction as established by the Institute’s Board. This includes developing the strategic and underpinning plans, allocating resources and ensuring that policies and reports are in place for the Institute to meets its legislative and contractual obligations.

Director EducationThe primary objective of this Division is driving training activity through the planning, development, provision and reporting of quality, responsive and flexible training services for students, employers and the community.

Director Client ServicesThe primary objective of this division is to provide services that support both domestic and international students and to cultivate

business opportunities for the Institute leading to increased training activity.

Director OperationsThis division is responsible for financial management and the management of resources and services to ensure quality services are developed and maintained in accordance with the Institute’s objectives.

Director Organisational CapabilityThe primary objective of this division is to drive the strategic capability of the Institute through the development, implementation and delivery of the Workforce Development Strategy.

Top Left Tracey Forbes > Director EducationTop Right Jenny Grigg > Director Client ServicesBottom Left Frank Piscioneri > Director OperationsBottom Right Anthony Mills > Director Organisational Capability


Organisational Structure

Minister Department of Education and Training (DET)Hon. Steve Herbert

Office of the SecretarySecretary Gill Callister

Higher Education Skills Group (HESG)Deputy Secretary Craig Robertson

SuniTAFE Board ChairLeonie Burrows

Audit, Finance and Risk Committee Chair Geoffrey Dea

Governance CommitteeChair Kay Martin

Chief Executive OfficerWin Scott

Directorate - Planning and Reporting - Quality and Compliance- Executive Projects

Organisational Capability Director Anthony Mills

HR ServicesTAFE Kids Inc. Community Childcare Centre

Education Director Tracey Forbes

Operations Director Frank Piscioneri

Client ServicesDirector JennyGrigg

Rural CampusesIndustry SkillsInternational & Higher EducationEducation ProjectsEducation SupportDulka Yuppata

Business ImprovementICT ServicesFinanceStudent AdministrationBuildings and PropertiesResidencesOH&SEnvironmentCapital Projects

FarmLearning Resource CentreBookshopPrintroomStudent Support ServicesRobinvale CampusMallee CampusBusiness DevelopmentMedia

The Institute’s 2015 Annual Report has been prepared in accordance with the requirements of all relevant legislation and subordinate instruments, including, but not limited to, the following:• Education and Training Reform Act 2006 (ETRA)• TAFE institute constitution• Directions of the Minister for Training and Skills (or predecessors)• TAFE institute Commercial Guidelines• TAFE institute Strategic Planning Guidelines• Public Administration Act 2004• Financial Management Act 1994• Freedom of Information Act 1982• Building Act 1993 • Protected Disclosure Act 2012• Victorian Industry Participation Policy Act 2003

Freedom of InformationSunraysia Institute of TAFE has implemented procedures which, subject to privacy and confidentiality provisions, facilitate all reasonable requests for information from students, staff and the general public without recourse to the Freedom of Information Act 1982.

Access to documents may be obtained through written request to the Freedom of Information Manager, as detailed in s17 of the Freedom of Information Act 1982. In summary, the requirements for making a request are:• it should be in writing;• it should identify as clearly as possible which document is being requested; and• it should be accompanied by the appropriate application fee (the fee may be waived in certain circumstances).

Formal requests for access to documents or records are required to be directed to:

Mr Anthony MillsFreedom of Information Officer/Director Organisational CapabilitySunraysia Institute of TAFEPO Box 1904, Mildura VIC 3502

Compliance Information

Requests can also be lodged online at www.foi.vic.gov.auAccess charges may also apply once documents have been processed and a decision on access is made; for example photocopying and search and retrieval charges.

Further information regarding Freedom of Information can be found at www.foi.vic.gov.au.

National Competition PolicyThe Institute has established mechanisms to ensure that the National Competition Policy including the requirements of the following Government Policy Statements are observed; ‘Competitive Neutrality: Statement of Victorian Government Policy’ and ‘Victorian Government Timetable for the Review of Legislative Restrictions on Competition’ and any subsequent reforms.

External Reviews There were no external reviews of the Institute in 2015.

Non-Academic Student Fees The Institute levies a compulsory student services and amenities fee. The fee is fully applied to the provision of funding for student recreation, counselling and welfare and other non-academic support services. The processes for the collection and disbursement of the services and amenities fees are managed by the Institute and are not paid to any student organisations. Total Student Services and Amenities Fees collected for the year ending 31 December 2015 by the Institute was $232,402.

Materials fees are separate and also compulsory. These fees enable students to access the resources needed for completion of their course. Materials charges are set by each department at SuniTAFE, and vary from course to course. In 2015 total materials fees were $657,582 compared to 2014 $634,342. Further information about

these fees can be obtained from the relevant teaching department.

A list of fees and charges is available on the Institute’s website - www.sunitafe.edu.au

Maintenance and Capital WorksThe Sunraysia Institute of TAFE takes all reasonable steps to ensure that Institute buildings conform to relevant building standards and codes; including the National Construction Code (NCC), the Victorian Building Act 1993, and Victorian Building Regulations 2006.

Institute buildings in existence prior to the introduction of the Building Act 1993 comply with the relevant building regulations existent at that time. The Institute’s ongoing maintenance programs and any improvements or alterations to buildings are completed in a manner compliant with the relevant requirements of the Building Act 1993.

SuniTAFE retains all plans and documentation for building extensions and new buildings. Upon completion of construction, the Institute obtains Certificates of Occupancy and Final Inspection from the relevant Building Surveyors.

In 2015 the institute undertook major works (greater than $50,000) as follows:• Kinder room extension, TAFE Kids Inc., Mildura Campus Redevelopment, incorporating the Dulka Yuppata Cultural and Training Centre (due for completion Maydulka 2016) • Swan Hill Campus Learning Commons and Trades Classrooms (Due for completion February 2016)

Victorian Industry Participation Policy (VIPP)No contracts applicable to the VIPP were commenced in 2015.


Protected Disclosure Act 2012 The Protected Dissclosure Act 2012 (formerly the Whistleblowers Protection Act 2001) encourages and assists people in making disclosures of improper conduct by public officers and public bodies. The Act provides protection to people who make disclosures in accordance with the Act and establishes a system for the matters disclosed to be investigated and rectifying action to be taken.

The Institute does not tolerate improper conduct by employees, nor the taking of reprisals against those who come forward to disclose such conduct. It is committed to ensuring transparency and accountability in its administrative and management practices and supports the making of disclosures that reveal corrupt conduct, conduct involving a substantial mismanagement of public resources, or conduct involving a substantial risk to public health and safety or the environment. The Institute will take all reasonable steps to protect people who make such disclosures from any detrimental action in reprisal for making the disclosure. It will also afford natural justice to the person who is the subject of the disclosure to the extent it is legally possible.

No requests under the Freedom of Information Act 1982 were received by the Institute during 2015, nor any disclosures referred to or from the Ombudsman or taken over by the Ombudsman. There were no recommendations made by the Ombudsman under the Act that related to the Institute.

RecruitmentIn 2015, 17 new positions were created and 34 staff departures occurred during the reporting period, resulting in a turnover rate of 12.2%. This resulted in 53 staffing movements throughout 2015. In 2015 $125,722 was spent on staff learning and development activities with $33,000 of this

funded by Victorian Development Centre initiatives.

Industrial Relations The Institute works closely with employees and both the National Tertiary Education Union (NTEU) and the Australian Education Union (AEU) to negotiate replacement agreements for employees. Regular meetings were conducted in 2015 as per the negotiation meeting schedule. There has been no industrial action during this period.

Carer’s Recognition Act 2013 (Carer’s Act) The Sunraysia Institute of TAFE has taken all practical measures to comply with its obligations under the Carers Recognition Act 2012 to ensure staff have an awareness and understanding of the care relationship principles set out in the Act.

The Institute has an equal opportunity policy in place that entitles staff to reasonable flexibility in working arrangements where needed to accommodate their carer responsibilities.

In delivering services to the community, the Institute is guided by its access and equity policy which promotes adherence to the principles of access and equity and directs that Institute practices be inclusive and should not unreasonably prevent individuals from accessing services or participating in learning. Staff and/or students in a carer’s role are encouraged to access a range of services offered by the Institute, including Student Support Services such as counselling, disability support and participation services.

New staff are made aware of these policies as part of their induction. In addition, a formal program of awareness raising about the Act was conducted in 2015.

Victorian Public Sector Travel Principles The Sunraysia Institute of TAFE has formal mechanisms in place to ensure that all

travel by employees is approved and undertaken in accordance with Victorian Public Sector Travel Principles and the Australian Tax Office guidelines. In 2015 the Institute’s policies on domestic and overseas travel were audited, reviewed in accordance with the 2006 Victorian Public Sector Travel Principles issued by the Department of Premier and Cabinet and approved by the Board.

Workplace Health and Safety Incident managementThe Workplace Health and Safety Co-ordinator reports to the Facilities Manager, Building and Properties.

The goal of the Institute’s occupational health and safety strategy is to ensure that all staff, students, contractors and visitors remain safe and healthy during their involvement with the Institute. The following action has been taken in 2015 in respect to achieving this goal:- The Emergency Management Plan has been trialled, reviewed and refined across all campuses during the year. Steps taken have included:

• Initial Warden training for new Wardens at Mildura and Swan Hill campuses. • First Aid and HSR training to meet needs across the Institute. • Desktop audits for Mildura Campus conducted by a qualified external trainer. • Evacuation drills at Mildura and Swan Hill campuses – external observer. • Change to evacuation procedures for improved efficiency. • Preparation of maps redefining evacuation zones for Mildura campus. • Senior staff have received training from CFA officers on the use of fire tankers.

- Training of First Aid officers and maintenance of the First Aid kit. - Review of procedures for general Institute safety. - Tree pruning has begun to meet the recommendations of an arborist engaged to inspect and report on trees

under the control of the Institute. - Implementation, testing and maintenance of an improved Duress Alarm system. - Continued workplace inspections across the campuses resulting in the identification and resolution of hazards throughout the year. - Safety audits conducted during September on both the Mildura and Swan Hill building extension projects. - Extensions and changes to car parks at Mildura campus for improved safety.

In 2015 the incident/injury rate remained relatively low. Aside from one case, injuries have been minor. There have been no VWA visits and no WorkCover claims for 2015. There was one minor hand injury that occurred at the site of the Swan Hill building extension project. Apart from this both building projects at the Mildura and Swan Hill campuses have remained safe. Contractors have received work health and safety induction and sites have sign-in rules.

Where hazards have been identified, steps have been taken to eliminate or effectively control the risk. In instances where the immediate solution has not been obvious, risk assessments have been conducted and documented with research and the use of the “Hierarchy of Control” leading to the most suitable solution.

The Institute’s performance against work health and safety management measures in 2015 compared with 2014 are outlined in the table above.

WorkCover and Injury Management PerformanceThere were no WorkCover claims presented during 2015 and no lost time.

1. Work Place Health and Safety applied by the Institute ensures that all incidents are reported and recorded for staff, students, contractors and visitors. Hard copy and electronic records are maintained. With one exception, all incidents were minor – slips, trips, falls, hand cuts and burns. The one major injury was to a student who sustained a tear in a tendon in her arm as a result of a manual handling incident. This student has received follow-up medical treatment for the injury. There were no Victorian WorkCover Authority notifications during the 2015 reporting period. 2. There were no WorkCover claims presented during 2015 and no lost time.3. Due to no WorkCover claims during 2015, the Institute Work Cover premium rate and premium have been reduced from the 2014 level.4. Health, safety and wellbeing activities for staff included participation in the 10,000 Step Challenge, hearing tests and OH&S Committee Meetings. 5. Hazards were identified through designated work group area inspections, the Institute’s hazard/near miss reporting system, the Institutes’s injury reporting and investigating system and the Occupational Health and Safety Committee. 6. New staff induction - All new employees were inducted during 2015. The Occupational Health & Safety Committees at both the Mildura & Swan Hill campuses operated as required under the Occupational Health & Safety Act.

Measure KPI 2014 2015

Incidents EmployeesMinor incidents reported StudentsMinor incidents reported Major incidents reportedVisitorsMinor incidents reported

1

12

280

1

15

161

0Claims WorkCover claims

Total time lost (hours)

2 00.00

0 0.00

Fatalities - - -

Claim costs Total paid on claims Work Cover premium Industry premium rate Institute premium rate

3 $267.04$131,4330.9500%0.7428%

0$96,543.04

0.9500%0.7164%

Return to work 0 0

Management commitment

Consultation and participation

MilduraSwan Hill

4 55

45

Risk management Hazards identified and resolved 5 76 37

Training 6 63 24


Additional Information Available on Request In compliance with the requirements of the Standing Directions of the Minister for Finance, details in respect of the items listed below have been retained by the Institute and are available on request, subject to the provisions of the Freedom of Information Act 1982.- a statement that declarations of pecuniary interests have been duly completed by all relevant officers;- details of shares held by a senior officer as nominee or held beneficially in a statutory authority or subsidiary; - details of publications produced by the Institute about itself, and how these can be obtained; - details of changes in prices, fees, charges, rates and levies charged by the Institute; - details of any major external reviews carried out on the Institute;- details of major research and development activities undertaken by the Institute;

- details of overseas visits undertaken including a summary of the objectives and outcomes of each visit; - details of major promotional, public relations and marketing activities undertaken by the Institute to develop community awareness of the Institute and its services; - details of assessments and measures undertaken to improve the occupational health and safety of employees; - a general statement on industrial relations within the entity and details of time lost through industrial accidents and disputes; - a list of major committees sponsored by the Institute, the purposes of each committee and the extent to which the purposes have been achieved; and- details of all consultancies and contractors including: • consultants/contractors engaged; • services provided; and • expenditure committed to for each engagement.

2012 2013 2014 2015222 230 208 202

WORKFORCE INFORMATION

Table 2. Workforce data for the current and previous reporting period as at June302015

Year Female Male Total

EFT People EFT People EFT People2014 119 208 89 115 208 323

2015 122 202 80 111 202 313

Please note: Data for Table 1 and Table 2 is sourced from reports to the Victorian Public Sector Commission and are a snapshot of the final pay run in June for each year as per Guidance Note to FRD 29A.

Enquiries regarding details of any of the above should be addressed to:Anthony Mills Director Organisational CapabilitySunraysia Institute of TAFEPO Box 1904, Mildura VIC 3502Ph: 03 50223705Email: [email protected]: www.sunitafe.edu.au

Major Commercial Activity In 2015 the Sunraysia Institute of TAFE did not undertake any major commercial activities. This is reported in accordance with section 45 of the Financial Management Act 1994, together with matters listed under Commercial Guideline 10 (clause 27).

Controlled EntitiesUnder section 45 of the Financial Management Act 1994 a copy of the accounts of TAFE Kids Inc. prepared in accordance with the requirements of the Financial Management Act 1994 is included in the audited Financial Report; Note 22.

Table 3. Summary of employment by status and gender for 2015

Snapshotasat30June2015Mode of Employment Female Male ATSI TotalPermanent full time 61 61 7 122Permanent part time 44 7 0 51Temporary full time 34 20 0 54Temporary part time 11 8 0 19Casual 52 15 0 67Total 202 111 7 313

Table4.Employmentbyclassification

Snapshotasat30June2015Classification EFT PeopleExecutive 5 5Teaching 89.53 146PACCT 91.26 134Others (agreed contracts) 15.99 28Total 202 313

Table5.Detailsofongoingemployeescomparedwithfixedtermandcasualemployeesfor the current and previous reporting periodOngoing Employees Fixed term &

Casual EmployeesEmployees(Headcount)

Full time(Headcount)

Part time(Headcount)

FTE FTE

30June2014 181 129 52 151 5730June2015 173 122 51 136 65

Table1.FulltimeEquivalents(FTE)staffingtrendsasatJune302015


Table 6. Details of employment levels in 2015 compared with previous year.

30 June 2014 30 June 2015

Ongoing Fixed term & CasualEmployee

Ongoing Fixed term & CasualEmployee

Gender Employee(Headcount)

FTE FTE Employee(Headcount)

FTE FTE

Male 69 64 25 68 57 22

Female 112 87 32 105 79 43

Age

Under 25 5 4 3 3 3 5

25-34 29 23 8 24 18 11

35-44 50 41 17 47 35 19

45-54 48 41 10 42 35 10

55-64 43 38 16 49 41 17

Over 64 6 4 4 8 4 3

Classification

PACCT 1 3 1 2 4 2 1

PACCT 2 31 23 3 27 20 9

PACCT 3 14 10 1 14 9 3

PACCT 4 17 16 0 15 14 1

PACCT 5 14 13 1 15 12 0

PACCT 6 8 5 1 7 4 2

PACCT 7 6 6 0 6 4 0

PACCT8 4 4 0 4 3 0

T4CAS1 0 0 5 0 0 6

T5CAS1 0 0 1 0 0 1

T1 0 0 1 0 0 0

T2 1 1 10 1 1 9

T3 0 0 0 0 0 0

T4 14 12 5 10 9 6

T5 43 39 8 44 36 8

SE1 5 5 1 6 6 2

SE2 1 1 0 1 1 0

SE3 8 8 0 8 6 0

NONEXEC.1 2 2 4 2 2 2

EXEC.1 0 0 4 0 0 4

CEO 0 0 1 0 0 1

CSE2 1 1 0 1 1 0

CSE3 1 0 5 1 1 7

CSE4 7 5 3 5 4 3

ESA6 0 0 0 1 1 0

DIRL3.6.9 1 1 0 1 1 0

Please note: Employee classifications for Table 6 are correctly allocated as per the TAFE Sector ASCO-ANZSCO Transition Table.

Employment and Conduct Principles SuniTAFE is committed to applying merit and equity principles when appointing staff. The selection processes ensure that applicants are assessed and evaluated fairly and equitably on the basis of the key selection criteria and other accountabilities without discrimination. Employees have been correctly classified in workforce data collections.

The Institute complies with the Public Administration Act 2004 Employment and Conduct Principles in the following ways:- Employment decisions are based on merit.- Employees are treated fairly and reasonably. - Equal employment opportunity is provided.- Employees have reasonable avenues of redress against unfair or unreasonable treatment. - PAACT employees are classified in a manner compliant with PACCT staff classification guidelines and the Classification Descriptions as listed

in Schedule A in the Sunraysia Institute of TAFE Enterprise (PACCT) Agreement 2011.- Teaching employees are classified in a manner compliant with Schedule 1 and 5 of the Victorian TAFE Teaching Staff Multi Business Agreement (MBA) 2009.

The Institute’s Code of Conduct, which is reviewed annually, provides guidance to all staff on expected behaviour and professional conduct and is based on the Institute’s expected standards and Victorian Public Sector values. SuniTAFE is committed to equal opportunity and fair and transparent processes in all human resource management procedures.

The Public Administration Act 2004 abolished the Office of Commissioner for Public Employment and established the State Services Authority. Notwithstanding, the Institute continues to implement the previous directions of the Commissioner for Public Employment with respect to upholding public sector conduct, managing and valuing diversity, managing

underperformance, reviewing personal grievances, and selecting on merit.

SuniTAFE introduced a suite of detailed employment policies, including policies with respect to grievance resolution, recruitment, redeployment, and managing diversity. Policies with respect to managing underperformance and discipline were produced and have been implemented across the organisation.

Consultants In 2015, there was one consultancy where the total fees payable to the consultants were $10,000 or greater and no consultancies individually valued at less than $10,000.

Total expenditure during 2015 in relation to these consultancies was $727,677 [excl. GST].

Details of individual consultancies (where fees paid were greater than $10,000) can be viewed at http://www.sunitafe.edu.au/reports/


Compliance AttestationI, Leonie Burrows certify that the Sunraysia Institute of TAFE has complied with the mandatory requirements of the Victorian Government Risk Management Framework and has risk management processes in place consistent with the Australian/New Zealand Risk Management Standard. Further, the Institute has an internal control system in place that enables the executive to understand, manage and satisfactorily control risk exposures. The audit committee verifies this assurance and that the risk profile of the Sunraysia Institute of TAFE has been critically reviewed within the last 12 months.

Leonie BurrowsBoard ChairSunraysia Institute of TAFE 29/03/2016

Attestation for compliance with Ministerial Standing Direction 4.5.5.1 – InsuranceI, Leonie Burrows certify that the Sunraysia Institute of TAFE is required to insure with the VMIA under the Victorian Managed Insurance Authority ACT 1996 and as such have insured appropriately, having regard to relevant Government guidelines and directions as per Ministerial Direction 4.5.5.1- insurance, the Sunraysia Institute of TAFE has;a) Determined the appropriate level of insurance in consultation with the VMIA.b) Maintained a current register of all insurance and indemnities and makes this available to the VMIA on request.c) Recorded the valuation and basis for valuation of self-insured retained losses.d) Provided information on claims management capability, resources, structures and processes for any self- insured retained losses to the VMIA.

The Sunraysia Institute of TAFE has undertaken this process as part of the annual insurance renewal. The Audit committee verifies this assurance.

Leonie Burrows Board Chair Sunraysia Institute of TAFE 29/03/2016

Disclosure indexThe annual report of the Institute is prepared in accordance with all relevant Victorian legislations and pronouncements. This index has been prepared to facilitate identification of the Institute’s compliance with statutory disclosure requirements.

Disclosure Index

Item No. Source SUMMARY OF REPORTING REQUIREMENT Page No.

REPORT OF OPERATIONS - CHARTER AND PURPOSE

1 FRD 22G Manner of establishment and the relevant Minister 2, 17, 20, 74

2 FRD 22G Purpose, functions, powers and duties linked to a summary of activities, programs and achievements

2, 15, 17

3 FRD 22G Nature and range of services provided including communities served 2

MANAGEMENT AND STRUCTURE

4 FRD 22G Organisational structure and chart, including responsibilities 19-20

5 FRD 22G Names of Board members 18

FINANCIAL AND OTHER INFORMATION

6 FRD 03A Accounting for Dividends N/A

7 FRD 07A Early adoption of authoritative accounting pronouncements 48, 49, 50, 51

8 FRD 10 Disclosure Index 29-31

9 FRD 17B Long Service leave and annual leave for employees 47

10 FRD 20A Accounting for State motor vehicle lease arrangements prior to 1 Feb 2004 N/A

11 FRD 22G Operational and budgetary objectives, performance against objectives and achievements 5-15

12 FRD 22G Occupational health and safety statement including performance indicators, performance against those indicators. Reporting must be on the items listed at (a) to (e) in the FRD

22, 23

13 FRD 22G Workforce data for current and previous reporting period including a statement on employment andconductprinciplesandthatemployeeshavebeencorrectlyclassifiedintheworkforcedata collections

25, 26

14 FRD 22G Summaryofthefinancialresultsfortheyearincludingprevious4yearcomparisons 15

15 FRD 22G Significantchangesinfinancialposition 15

16 FRD 22G Keyinitiativesandprojects,includingsignificantchangesinkeyinitiativesandprojectsfromprevious years and expectations for the future

3, 4, 8, 9, 10, 16

17 FRD 22G Post-balancesheetdateeventslikelytosignificantlyaffectsubsequentreportingperiods 15, 76

18 FRD 22G Summary of application and operation of the Freedom of Information Act 1982 21

19 FRD 22G Discussionandanalysisofoperatingresultsandfinancialresults 10, 11, 15

20 FRD 22G Significantfactorsaffectingperformance 15

21 FRD 22G Where a TAFE has a workforce inclusion policy, a measurable target and report on the progress towards the target should be included

N/A

22 FRD 22G Schedule of any government advertising campaign in excess of $100,000 or greater (exclusive of GST) include list from (a) – (d) in the FRDS

N/A

23 FRD 22G Statement of compliance with building and maintenance provisions of the Building Act 1993 21

24 FRD 22G Statement, where applicable, on the implementation and compliance with the National Competition Policy

21

25 FRD 22G Summary of application and operation of the Protected Disclosure Act 2012 22

26 FRD 22G and FRD 24C

Summary of Environmental Performance including a report on office based environmental impacts 13, 14, 15

KEY TO ABBREVIATIONS FRD = Financial Reporting Directions (as at August 2015)available at: http://www.dtf.vic.gov.au/Publications/Government-Financial-Management-publications/Financial-Reporting-Policy/Financial-reporting-directions-and-guidance

SD = Standing Directions (as at May 2015)available at: http://www.dtf.vic.gov.au/Publications/Government-Financial-Management-publications/Financial-Management-Compliance-Framework/Standing-Directions-of-the-Minister-for-Finance

CG = Commercial Guidelinesavailable at: http://www.education.vic.gov.au/about/department/legislation/Pages/guidelines.aspx



27 FRD 22G Consultants:Report of Operations must include a statement disclosing each of the following1. Total number of consultancies of $10,000 or more (excluding GST)2. Location (eg website) of where details of these consultancies over $10,000 have been made

publicly available 3. Total number of consultancies individually valued at less than $10,000 and the total

expenditure for the reporting periodAND for each consultancy more than $10,000, a schedule is to be published on the TAFE institute website listing:• Consultant engaged • Brief summary of project• Total project fees approved (excluding GST)• Expenditure for reporting period (excluding GST)• Any future expenditure committed to the consultant for the project

27

28 FRD 22G Statement, to the extent applicable, on the application and operation of the Carers Recognition Act 2012 (Carers Act), and the actions that were taken during the year to comply with the Carers Act

22

29 FRD 22G List of other information available on request from the Accountable Officer, and which must be retained by the Accountable Officer (refer to list at (a) – (l) in the FRD)

24

30 FRD 25B Victorian Industry Participation Policy Disclosures 21

31 FRD 26A Accounting for VicFleet motor vehicle lease arrangements on or after 1 February 2004 N/A

32 FRD 29A Workforce Data Disclosures on the public service employee workforce Note:TAFEscanreportonacalendaryearbasis(ienotfinancialyearbasis)

25, 26, 74, 75

33 SD 4.5.5(a) ProvideanattestationthatriskidentificationandmanagementisconsistentwithAS/NZSISO31000:2009 or equivalent

28

34 SD 4.2(g) Qualitative and Quantitative information to be included in Report of Operations, and provide general information about the entity and its activities, together with highlights and future initiatives

2-16

35 SD 4.2(h) The Report of Operations must be prepared in accordance with requirements of the relevant Financial Reporting Directions

32

36 SD 4.2(j) The Report of Operations must be signed and dated by a member of the Responsible Body 0, 32

37 CG 10 (clause 27)

Major Commercial Activities 24

38 CG 12 (clause 33)

Controlled Entities 24

FINANCIAL REPORT - FINANCIAL STATEMENTS REQUIRED UNDER PART 7 OF THE FINANCIAL MANAGEMENT ACT 1994

39 SD 4.2(a) Thefinancialstatementsmustbepreparedinaccordancewith:• Australian accounting standards (AAS and AASB standards) and other mandatory professional

reporting requirements (including urgent issues group consensus views);• Financial Reporting Directions; and • business rules

32, 39-51

40 SD 4.2(b) Thefinancialstatementsaretocomprisethefollowing:• income statement;• balance sheet;• statement of recognised income and expense; • cash flows statement; and• notestothefinancialstatements.

35-76

OTHER REQUIREMENTS UNDER STANDING DIRECTION 4.2 / FINANCIAL MANAGEMENT ACT 1994 (FMA)

41 SD 4.2(c) and FMA s 49

ThefinancialstatementsmustcontainsuchinformationasrequiredbytheMinisterandbeprepared in a manner and form approved by the Minister. They must be signed and dated by the Accountable Officer, CFAO and a member of the Responsible Body, in a manner approved by the Minister, stating whether, in their opinion:• thefinancialstatementspresentfairlythefinancialtransactionsduringthereportingperiod

andthefinancialpositionattheendoftheperiod;• thefinancialstatementsarepreparedinaccordancewiththisdirectionandapplicable

Financial Reporting Directions; and • thefinancialstatementscomplywithapplicableAustralianaccountingstandards(AASand

AASB standards) and other mandatory professional reporting requirements (including urgent issues group consensus views).

32

42 SD 4.2(d) Rounding of amounts 48

43 SD 4.2(e) ReviewandrecommendationbyAuditCommitteeorresponsiblebodypriortofinalisationandsubmission

28

OTHER REQUIREMENTS AS PER FINANCIAL REPORTING DIRECTIONS IN NOTES TO THE FINANCIAL STATEMENTS

44 FRD 11A Disclosure of ex-gratia payments N/A

45 FRD 21B Disclosures of Responsible Persons, Executive Officer and Other Personnel (Contractors with significantmanagementresponsibilities)intheFinancialReport

74, 75


46 FRD 102 Inventories 45, 46, 54

47 FRD 103F Non-financialphysicalassets 46, 54, 55

48 FRD 104 Foreign currency 39

49 FRD 105A Borrowing costs 43

50 FRD 106 Impairment of assets 44

51 FRD 107A Investment properties N/A

52 FRD 109 Intangible assets 46

53 FRD 110 Cash flow statements 38

54 FRD 112D Definedbenefitsuperannuationobligations 65

55 FRD 113A Investment in subsidiaries, jointly controlled entities and associates 39, 40, 41, 75

56 FRD 114A Financialinstruments–generalgovernmententitiesandpublicnon-financialcorporations 66-73

57 FRD 119A Transfers through contributed capital 48

58 FRD 120I Accounting and reporting pronouncements applicable to the reporting period 48, 49, 50, 51

59 Legislation The TAFE institute Annual Report must contain a statement that it complies with all relevant legislation, and subordinate instruments, (and which should be listed in the Report) including, but not limited to, the following:• Education and Training Reform Act 2006 (ETRA)• TAFE institute constitution• Directions of the Minister for Training and Skills (or predecessors)• TAFE institute Commercial Guidelines• TAFE institute Strategic Planning Guidelines• Public Administration Act 2004• Financial Management Act 1994 Freedom of Information Act 1982• Building Act 1993• Protected Disclosure Act 2012• Victorian Industry Participation Policy Act 2003

21

60 ETRA s3.2.8 Statement about compulsory non-academic fees, subscriptions and charges payable in 2015 21

61 Policy Statement that the TAFE institute complies with the Victorian Public Sector Travel Principles 22

62 Key Performance Indicators

Institutes to report against:• KPIs set out in the annual Statement of Corporate Intent; and• Employment costs as a proportion of training revenue;• Training revenue per teaching FTE;• Operating margin percentage;• Training Revenue diversity

11

63 PAEC andVAGO(June2003Special Review item 3.110)

• Financial and other information on initiatives taken or strategies relating to the institute’s overseas operations

• Nature of strategic and operational risks for overseas operations• Strategies established to manage such risks of overseas operations• Performance measures and targets formulated for overseas operations• The extent to which expected outcomes for overseas operations have been achieved

9-10


Financial Report for Year Ended 31 December, 2015 Declaration by The Board Chair Chief Executive Officer and Chief Finance and Accounting Officer

We certify that the attached financial statements for the Sunraysia Institute of TAFE has been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions issued under that legislation, Australian Accounting Standards and other mandatory professional reporting requirements.

The following statements contain information as required by the Minister and are prepared in a manner and form approved by the Minister.

We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and notes to and forming part of the financial report, presents fairly the financial transactions during the year ended 31 December 2015 and financial position of the Institute as at 31 December 2015.

At the date of signing this financial report, we are not aware of any circumstance that would render any particulars included in the financial report to be misleading or inaccurate. There are reasonable grounds to believe that the Institute will be able to pay its debts as and when they became due and payable.

The Board Chair and the Chief Executive Officer sign this declaration as delegates of, and in accordance with a resolution of, the Board of the Sunraysia Institute of TAFE.

Board ChairLeonie Burrows

24/03/2016Place: Mildura

Chief Finance & Accounting OfficerFrank Piscioneri


Chief Executive OfficerWin Scott


Declaration Statement


Comprehensive Operating Statement for the year ended 31 December 2015

Continuing operations Note

Consolidated Institute

2015 $’000

2014 $’000

2015 $’000

2014 $’000

Income from transactionsGovernment contributions - operating 2(a)(i) 21,878 14,760 21,878 14,760Government contributions - capital 2(a)(ii) 5,420 288 5,420 -

Sale of goods and services 2(b) 9,435 8,764 8,244 7,625

Interest 2(c) 111 90 108 88

Other income 2(d) 42 121 24 92

Total income from transactions 36,886 24,023 35,674 22,565

Expenses from transactionsEmployee expenses 3(a) 18,106 19,162 17,111 18,165Depreciation and amortisation 3(b) 1,712 2,223 1,694 2,209

Grants and other transfers 3(c) - 23 - 23

Supplies and services 3(d) 8,329 7,988 8,186 7,883

Other operating expenses 3(e) 2,284 2,313 2,256 2,246

Total expenses from transactions 30,431 31,709 29,247 30,526

Net result from transactions (net operating balance) 6,455 (7,686) 6,427 (7,961)

Other economic flows included in net resultNet gain/(loss) on non-financial assets 4(a) (37) (2,715) (37) (2,715)Net gain/(loss) on financial instruments 4(b) (55) (57) (55) (48)

Other gains/(losses) from other economic flows 4(c) (122) (193) (110) (186)Total other economic flows included in net result (214) (2,965) (202) (2,949)

Net result from continuing operations 6,241 (10,651) 6,225 (10,910)

Comprehensive result 6,241 (10,651) 6,225 (10,910)

The comprehensive operating statement should be read in conjunction with the notes to the financial statements.

Financial Statements for Sunraysia Institute of TAFE


Financial Statements

36

Balance Sheet as at 31 December 2015

Assets Note


2015 $’000

2014 $’000

2015 $’000

2014 $’000

Financial assetsCash and deposits 14(a) 5,228 2,608 4,964 2,084Receivables 5 1,734 2,614 1,820 2,716

Investments and other financial assets 6 106 103 36 36

Total financial assets 7,068 5,325 6,820 4,834

Non-financial assetsInventories 7 108 138 108 138Property, plant and equipment 8 35,982 34,478 35,191 33,998

Intangible assets 9 3,313 3,605 3,313 3,605

Other non-financial assets 10 524 244 524 244

Total non-financial assets 39,927 38,465 39,136 37,985

Total assets 46,995 43,790 45,956 42,819

LiabilitiesPayables 11 3,511 6,634 3,447 6,613Provisions 12 2,965 2,880 2,861 2,785

Other liabilities 18 36 34 36 34Total liabilities 6,512 9,548 6,344 9,432

Net assets 40,483 34,242 39,612 33,387

EquityAccumulated surplus/(deficit) 11,305 5,064 10,646 4,421Physical asset revaluation surplus 13(a) 22,181 22,181 21,969 21,969

Contributed capital 6,997 6,997 6,997 6,997

Net worth 40,483 34,242 39,612 33,387

Commitments for expenditure 15 6,271 760 6,271 430

Contingent assets and contingent liabilities 16 - - - -

The balance sheet should be read in conjunction with the notes to the financial statements.

Statement of Changes in Equity for the year ended 31 December 2015

Consolidated Note

Physical asset

revaluation surplus

Accumulated surplus

Contributions by owner Total

$’000

$’000

$’000

$’000

At 1 January 2014 22,181 15,715 6,997 44,893Net result for the year - (10,651) - (10,651)

Year ended 31 December 2014 22,181 5,064 6,997 34,242Net result for the year 6,241 6,241Year ended 31 December 2015 22,181 11,305 6,997 40,483

Institute Note

Physical asset

revaluation surplus

Accumulated surplus

Contributions by owner Total

$’000 $’000 $’000 $’000

At 1 January 2014 21,969 15,331 6,997 44,297

Net result for the year - (10,910) - (10,910)

Year ended 31 December 2014 21,969 4,421 6,997 33,387

Net result for the year 6,225 6,225Year ended 31 December 2015 21,969 10,646 6,997 39,612

The statement of changes in equity should be read in conjunction with the notes to the financial statements.



38

Cash Flow Statement for the year ended 31 December 2015

Cash flows from operating activities Note


2015 $’000

2014 $’000

2015 $’000

2014 $’000

ReceiptsGovernment contributions - operating 20,669 21,826 20,122 21,286Government contributions - capital 5,420 288 5,420 -

User fees and charges received 7,889 7,397 7,287 6,768

Goods and services tax recovered from the ATO 114 150 107 149

Interest received 111 90 108 88

Other receipts 1,134 1,058 875 1,023

Total receipts 35,337 30,809 33,919 29,314

PaymentsPayments to suppliers and employees (29,348) (29,260) (27,973) (28,092)Goods and services tax paid to the ATO (407) (897) (434) (872)

Total payments (29,755) (30,157) (28,407) (28,964)

Net cash flows from/(used in) operating activities 14(c) 5,582 652 5,512 350

Cash flows from investing activitiesProceeds from sale of investments 132 167 132 167Purchases of non-financial assets (3,094) (2,182) (2,764) (2,155)

Net cash provided by/(used in) investing activities (2,962) (2,015) (2,632) (1,988)

Net increase/(decrease) in cash and cash equivalents 2,620 (1,363) 2,880 (1,638)

Cash and cash equivalents at the beginning of the financial year 2,608 3,971 2,084 3,722

Cash and cash equivalents at the end of the financial year 14(a) 5,228 2,608 4,964 2,084

The above cash flow statement should be read in conjunction with the notes to the financial statements.

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2015

Notes to the Financial StatementsNote Accompanying Note Pg

1 Summary of significant accounting policies 392 Income from transactions 513 Expenses from transactions 524 Other economic flows included in net result 53 5 Receivables 536 Investments and other financial assets 547 Inventories 548 Property, plant and equipment 549 Intangible assets 5910 Other non-financial assets 6011 Payables 6012 Provisions 6113 Reserves 6214 Cash flow information 6315 Commitments for expenditure 6416 Contingent assets and contingent liabilities 6417 Superannuation 6518 Trust account balances 6519 Financial instruments 6620 Key management personnel disclosures 7421 Responsible persons and executive officers 7522 Controlled entities 7523 Remuneration of auditors 7624 Subsequent events 7625 Economic dependency 7626 Institute details 76

Note 1 Summary of significant accounting policiesThe annual financial statements represent the audited general purpose financial statements for Sunraysia Institute of TAFE and controlled entity (‘Consolidated Group’-or-‘Group’), and the separate financial statements and notes of Sunraysia Institute of TAFE as an individual parent entity (‘Parent-Entity’-or-‘Institute’). The accounting policies set out below have been applied in preparing the financial statements for the year ended 31 December 2015 and the comparative information presented for the year ended 31 December 2014. The following is a summary of the material accounting policies adopted by the Institute in the preparation of the financial report. The accounting policies have been consistently applied unless otherwise stated. 1.01 Statement of compliance These general purpose financial statements have been prepared in accordance with the Financial Management Act 1994 (FMA) and applicable Australian Accounting Standards (AAS) which include Interpretations, issued by the Australian Accounting Standards Board (AASB). In particular, they are presented in a manner consistent with the requirements of the AASB 1049 Whole of Government and General Government Sector Financial Reporting. For the purposes of preparing financial statements, the Institute is classed as a not-for-profit entity. Where appropriate, those AAS paragraphs applicable to not-for-profit entities have been applied. Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. 1.02 Basis of accounting preparation and measurement The financial statements were authorised for issue by the Board members on the 23rd of February 2016.

The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

These financial statements are presented in Australian dollars, the functional and presentation currency of the Institute, and have been prepared in accordance with the historical cost convention.



40

Historical cost is based on the fair values of the consideration given in exchange for assets. Exceptions to the historical cost convention include: • non-financial physical assets which, subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair value; • the fair value of an asset other than land is generally based on its depreciated replacement value;

Financial ViabilityAs at 31 December 2015, Sunraysia Institute of TAFE (the “Institute”) had equity, represented by Accumulated Surplus of $10,646,000 (2014: $4,421,000), Physical asset revaluation surplus of $21,969,000 (2014: $21,969,000) and contributed capital of $6,997,000, (2014: $6,997,000). Additionally the Institute had a working capital of 1.5, (2014: 0.67). Sunraysia Institute of TAFE recorded a profit for the 2015 financial year of $6,225,000 compared to a loss of $10,910,000 in 2014.Cash Net Flows from Operating Activities were positive in both years. There was an overall cash increase in cash in 2015 of $2,880,000 compared to a decrease in cash movement in 2014 of $1,638,000.Based on the projected cash flow position of the Institute as at the 29/02/2016, it is anticipated that after taking into consideration the Department of Education line of credit of $5,000,000 which the Institute has drawn down on $2,500,000 with a further $2,500,000 being available for draw down and anticipated funding for the 2015/16 Community Services Expectations grant to be received in the first half of 2016, the Institute will have a positive cash flow until March 2017.

Because of the above conditions, there is material uncertainty on the Institute’s ability to continue as a going concern and, therefore, the Institute may be unable to realise its assets and discharge its liabilities in the normal course of business. Accordingly, to address this, the Department of Education and Training will provide a further Community Service Expectations grant for 2016/17 which is expected to be paid in the 2016 calendar year. At this point in time the exact amount of this grant is unknown. Critical accounting judgement and key sources of estimation uncertainty Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

• The estimates and associated assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements made by management in the application of AASs that have significant effects on the financial statements and estimates relate to: • the fair value of land, buildings, infrastructure, plant and equipment;• superannuation expense; and• actuarial assumptions for employee benefit provisions based on likely tenure of existing staff, patterns of leave claims, future salary movements and future discount rates.

Fair value measurement Consistent with AASB 13 Fair Value Measurement, the Institute determines the policies and procedures for both recurring fair value measurements such as property, plant and equipment, biological assets, investment properties and financial instruments and for non-recurring fair value measurements such as non-financial physical assets held for sale, in accordance with the requirements of AASB 13 and the relevant Financial Reporting Directions.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and • Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

The Institute’s assets are subject to a revaluation model, as directed by the State’s Financial Reporting Directions. The Institute records non-current tangible assets at fair value (depreciated replacement cost), with revaluations completed every five years as required by FRD 103E Property, Plant and Equipment. The most recent valuation was completed at 31 December 2015 for plant and equipment, 31 December 2013 for land and 31 December 2012 for buildings. From the valuation performed at 31 December 2015 on plant and equipment, it was determined that depreciated replacement cost materially reflected fair value, hence no adjustment was required. During the interim years, an annual fair value assessment is undertaken by applying the VGV indices to ensure that the carrying value of the assets is not materially different from the fair value as at balance sheet date. The Institute uses indicies provided by the VGV to complete these assessments. The Valuer General Victoria (VGV) is the Corporation’s independent valuation agency.

For the purpose of fair value disclosures, the Institute has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. In addition, the Institute determines whether transfers have occurred between levels in the hierarchy by re assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

1.03 Reporting entity The financial statements cover the Sunraysia Institute of TAFE as an individual reporting entity. The Institute is a statutory body corporate, established pursuant to an act made by the Victorian Government under the Education and Training Reform Act 2006. Its principal address is: Sunraysia Institute of TAFE 453 Benetook Avenue Mildura. Victoria 3500 The financial statements include all the controlled activities of the entity. 1.04 Basis of consolidation In accordance with AASB 10 Consolidated Financial Statements, the consolidated financial statements of the Institute combine like items of assets, liabilities, equity, income, expenses and cash flows of the Institute with those of the reporting entities controlled by the Institute. Uniform accounting policies for like transactions and other events in similar circumstances are applied in the preparation of consolidated financial statements. A controlled entity is an entity over which the Institute has exposure or rights to variable returns from its involvement with the entity, and the ability to affect those returns though the use of its power over the entity. The existence of power over an entity is established when the Institute has existing rights that give it the current ability to direct the activities of the controlled entity which would significantly affect the returns of the controlled entity. Where control of an entity is obtained during the financial period, its results are included in the comprehensive operating statement from the date on which control commenced. Where control ceases during a financial period, the entity’s results are included for that part of the period in which control existed. All intragroup assets, liabilities, equity, income, expenses and cash flows relating to transactions between entities of the group are eliminated in full on consolidation.

If a member of the group uses accounting policies other than those adopted in the consolidated financial statements for like transactions and events in similar circumstances, appropriate adjustments are made to that group member’s financial statements in preparing the consolidated financial statements to ensure conformity with the group’s accounting policies. Entities consolidated into the Institute’s reporting entity include: TAFE Kids Inc.

Consistent with the requirements of AASB 1004 Contributions, contributions by owners (that is, contributed capital and its repayment) are treated as equity transactions and, therefore, do not form part of the income and expenses of the Institute. 1.05 Events after reporting date Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between the Institute and other parties, the transactions are only recognised when the agreement is irrevocable at or before balance date. Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting date and before the date the statements are authorised for issue, where those events provide information about conditions which existed at the reporting date. Note disclosure is made about events between the reporting date and the date the statements are authorised for issue where the events relate to conditions which arose after the reporting date and are considered to be of material interest. 1.06 Goods and Services Tax (GST) Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet. Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority are presented as operating cash flow. Commitments and contingent assets or liabilities are presented on a gross basis. 1.07 Income from transactions Income is recognised to the extent that it is probable that the economic benefits will flow to the entity and the income can be reliably measured at fair value. Amounts disclosed as income are, where applicable, net of returns, allowances and duties and taxes.



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Revenue is recognised for each of the Institute’s major activities as follows: Government contributions Government contributions are recognised as revenue in the period when the Institute gains control of the contributions. Control is recognised upon receipt or notification by relevant authorities of the right to receive a contribution for the current period. Sale of goods and services (i) Student fees and charges Student fees and charges revenue is recognised by reference to the percentage of services provided. Where student fees and charges revenue has been clearly received in respect of courses or programs to be delivered in the following year, any non- refundable portion of the fees is treated as revenue in the year of receipt and the balance as Revenue in Advance.

(ii) Fee for Service Fee for service revenue is recognised by reference to the percentage completion of each contract, i.e. in the reporting period in which the services are rendered. Where fee for service revenue of a reciprocal nature has been clearly received in respect of programs or services to be delivered in the following year, such amounts are disclosed as Revenue in Advance.

(iii) Revenue from sale of goods Revenue from sale of goods is recognised by the Institute when: (a) the significant risks and rewards of ownership of the goods have transferred to the buyer; (b) the Institute retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; (c) the amount of revenue can be reliably measured; (d) it is probable that the economic benefits associated with the transaction will flow to the Institute; and (e) the costs incurred or to be incurred in respect of the transaction can be measured reliably. Interest Interest income includes interest received on bank term deposits and other investments and the unwinding over time of the discount on financial assets. Interest income is recognised using the effective interest method which allocates the interest over the relevant period.

1.08 Expenses from transactions Expenses from transactions are recognised as they are incurred, and reported in the financial year to which they relate.

Employee benefits Expenses for employee benefits are recognised when incurred, except for contributions in respect of defined benefit plans. Retirement benefit obligations (i) Defined contribution plan Contributions to defined contribution plans are expensed when they become payable. (ii) Defined benefit plans The amount charged to the statement of comprehensive income in respect of superannuation represents the contributions made by the Institute to the superannuation plan in respect of current services of current Institute staff. Superannuation contributions are made to the plans based on the relevant rules of each plan. The Institute does not recognise any deferred liability in respect of the plan(s) because the Institute has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as and when they fall due. The Department of Treasury and Finance recognises and discloses the State’s defined benefit liabilities in its finance report. Depreciation and amortisation Depreciation Depreciation is provided on property, plant and equipment, including freehold buildings but excluding land. Depreciation is generally calculated on a straight-line basis and reducing balance, at rates that allocate the asset’s value, less any estimated residual value, over its estimated useful life. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period, and adjustments made where appropriate.

Class of asset Method 2015 2014

Buildings Diminishing Value / Straight Line 2.5% 2.5%

Plant & equipment Diminishing Value / Straight Line 10.0% - 25.0% 10.0% - 25.0%

Motor vehicles Diminishing Value / Straight Line20%

33.33% - 50%20%

33.33% - 50%Library collections Diminishing Value / Straight Line 10.0% 10.0%

Depreciation methods and rates used for each class of depreciable assets are:

Amortisation Intangible assets with finite lives are amortised on a straight line basis over the assets useful lives. Amortisation begins when the asset is available for use, that is, when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. The amortisation period and the

amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each annual reporting period. In addition, an assessment is made at each reporting date to determine whether there are indicators that the intangible asset concerned is impaired. If so, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount.

Class of asset Method 2015 2014

Software Diminishing Value / Straight Line 10% - 33% 10% - 33%

Intangible assets with indefinite lives are not amortised. The useful life of intangible assets that are not being amortised are reviewed each period to determine whether events and circumstances continue to support an indefinite useful life assessment for that asset. In addition, the Institute tests all intangible assets with indefinite lives for impairment by comparing its recoverable amount with its carrying amount: (a) annually; (b) whenever there is an indication that the intangible asset may be impaired. Any excess of the carrying amount over the recoverable amount is recognised as an impairment loss. Interest Expense Interest expense is recognised in the period in which it is incurred.Interest expense includes interest on advances, loans, overdrafts, bonds and bills, deposit, interest components of finance lease repayments, and amortisation of discounts or premiums in relation to borrowings. Grants and other transfers Grants and other transfers to third parties are recognised as an expense in the reporting period in which they are paid or payable.

Fair value of assets and services provided free of charge or for nominal consideration Resources provided free of charge or for nominal consideration are recognised at their fair value when the Institute obtains control over them, irrespective of whether these contributions are subject to restrictions or conditions over their use. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not received as a donation.

1.09 Other economic flows included in net result Other economic flows measure the change in volume or value of assets or liabilities that do not result from transactions. Net gain/(loss) on non-financial assets Net gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses from revaluations, impairments, and disposals of all physical assets and intangible assets. Disposal of non-financial assets Any gain or loss on disposal of non-financial assets is recognised at the date control of the asset is passed to the buyer and is determined after deducting from the proceeds the carrying value of the asset at the time. Impairment of non-financial assets Goodwill and intangible assets with indefinite useful lives (and intangible assets not yet available for use) are tested annually for impairment (i.e. as to whether their carrying value exceeds their recoverable amount and so require write downs). All other assets are assessed annually for indications of impairment, except for: • Inventories; • Financial assets; If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by a charge to the statement of comprehensive income, except to the extent that the write down can be debited to an asset revaluation reserve amount applicable to that class of asset.



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If there is an indication that there has been a change in the estimate of an asset’s recoverable amount since the last impairment loss was recognised, the carrying amount shall be increased to its recoverable amount. This reversal of the impairment loss occurs only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years. It is deemed that, in the event of the loss or destruction of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash flows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell. It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. Net gain/(loss) on financial instruments Net gain/(loss) on financial instruments includes realised and unrealised gains and losses from revaluations of financial instruments that are designated at fair value through profit or loss or held-for-trading, impairment and reversal of impairment for financial instruments at amortised cost, and disposals of financial assets. Revaluations of financial instruments at fair value The revaluation gain/(loss) on financial instruments at fair value excludes dividends or interest earned on financial assets, which is reported as part of income from transactions. Impairment of financial assets At the end of each reporting period, the Institute assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual review for impairment. Bad and doubtful debts for financial assets are assessed on a regular basis. Those bad debts considered as written off by mutual consent are classified as a transaction expense. Bad debts not written off by mutual consent and the allowance for doubtful receivables are classified as ‘other economic flows’ in the net result.

The amount of the allowance is the difference between the financial asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate.

In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets. Other gains/(losses) from other economic flows Other gains/(losses) from other economic flows include the gains or losses from reclassifications of amounts from reserves and/or accumulated surplus to net result, and from the revaluation of the present value of the long service leave liability due to changes in the bond interest rates. This classification is consistent with the whole government reporting format and is allowed under AASB 101 Presentation of Financial Statements. 1.10 Financial instruments Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Categories of non-derivative financial instruments Loans and receivables Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on an active market. These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial measurement, loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Loans and receivables category includes cash and deposits (refer to Note 1.11), term deposits with maturity greater than three months, trade receivables, loans and other receivables, but not statutory receivables. 1.11 Financial assets Cash and deposits Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and those highly liquid investments with an original maturity of three months or less, which are held for the purpose of meeting short term cash commitments rather than for investment purposes, and which are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

For cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as borrowings on the balance sheet. Receivables Receivables consist of: • statutory receivables, which include predominantly amounts owing from the Victorian Government and GST input tax credits recoverable; and • contractual receivables, which include debtors in relation to goods and services, loans to third parties, accrued investment income, and finance lease receivables

Receivables that are contractual are classified as financial instruments. Statutory receivables are not classified as financial instruments.

Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest method, less an allowance for impairment. A provision for doubtful receivables is made when there is objective evidence that the debts may not be collected and bad debts are written off when identified. Investments and other financial assets Investments are classified in the following categories: • loans and receivables; The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition. Any dividend or interest earned on the financial asset is recognised in the consolidated comprehensive operating statement as a transaction. Derecognition of financial assets A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when: • the rights to receive cash flows from the asset have expired; or • the Institute retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a ‘pass through’ arrangement; or• the Institute has transferred its rights to receive cash flows from the asset and either: (a) has transferred substantially all the risks and rewards of the asset, or

(b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Where the Institute has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of the Institute’s continuing involvement in the asset.

1.12 Leases A lease is a right to use an asset for an agreed period of time in exchange for payment.

Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance infrastructure leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership from the lessor to the lessee. All other leases are classified as operating leases.

Operating leases Institute as lessee Operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the balance sheet. 1.13 Non-Financial Assets Inventories Inventories include goods and other property held either for sale or for distribution at a zero or nominal cost, or for consumption in the ordinary course of business operations. It includes land held-for-sale and excludes depreciable assets. Inventories held-for-distribution are measured at cost, adjusted for any loss of service potential. All other inventories, including land held for sale, are measured at the lower of cost and net realisable value. where Inventories are acquired for no cost or nominal consideration, they are measured at current replacement cost at the date of acquisition. The basis used in assessing loss of service potential for inventories held-for-distribution include current replacement cost and technical or functional obsolescence. Technical obsolescence occurs when an item still functions for some or all of the tasks it was originally acquired to do, but no longer matches existing technologies. Functional obsolescence occurs when an item no longer functions the way it did when it was first acquired.



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Property, plant and equipment All non-financial physical assets, are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment. Where an asset is received for no or nominal consideration, the cost is the asset’s fair value at the date of acquisition.

The fair value of cultural assets and collections, heritage assets and other non-financial physical assets that the State intends to preserve because of their unique historical, cultural or environmental attributes, is measured at the replacement cost of the asset less, where applicable, accumulated depreciation (calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset) and any accumulated impairment. These policies and any legislative limitations and restrictions imposed on their use and/or disposal may impact their fair value.

The fair value of infrastructure systems and plant, equipment and vehicles, is normally determined by reference to the asset’s depreciated replacement cost, or where the infrastructure is held by a for-profit entity, the fair value may be derived from estimates of the present value of future cash flows. For plant, equipment and vehicles, existing depreciated historical cost is generally a reasonable proxy for depreciated replacement cost because of the short lives of the assets concerned.

The cost of constructed non-financial physical assets includes the cost of all materials used in construction, direct labour on the project, and an appropriate proportion of variable and fixed overheads.

For the accounting policy on impairment of non-financial physical assets, refer to Note 1.09 on Impairment of non-financial assets.

Library collections Library collections are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and impairment in accordance with FRD103F. Revaluations of non-financial physical assets Non-current physical assets measured at fair value are revalued in accordance with Financial Reporting Directions (FRDs) issued by the Minister for Finance. A full revaluation normally occurs every five years, based upon the asset’s government purpose classification, but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are generally used to conduct these scheduled revaluations. Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value. Revaluation increases are credited directly to equity in the revaluation reserve, except to the extent that an increase reverses

a revaluation decrease in respect of that class of property, plant and equipment, previously recognised as an expense (other economic flows) in the net result, the increase is recognised as income (other economic flows) in determining the net result. Revaluation decreases are recognised immediately as expenses (other economic flows) in the net result, except to the extent that a credit balance exists in the revaluation reserve in respect of the same class of property, plant and equipment, they are debited to the revaluation reserve. Revaluation increases and revaluation decreases relating to individual assets within a class of property, plant and equipment are offset against one another within that class but are not offset in respect of assets in different classes. Intangible assets Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated depreciation/amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to the Institute.

When recognition criteria AASB 138 Intangible Assets are met, internally generated intangible assets are recognised and measured at cost less accumulated depreciation/amortisation and impairment. Expenditure on research activities is recognised as an expense in the period in which It is incurred. An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following are demonstrated: (a) the technical feasibility of completing the intangible asset so that it will be available for use or sale; (b) the intention to complete the intangible asset and use or sell it; (c) the ability to use or sell the asset; (d) the intangible asset will generate probable future economic benefits; (e) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and (f) the ability to measure reliably the expenditure attributable to the intangible asset during its development. Where no internally-generated intangible asset can be recognised, development expenditure is recognised as an expense in the period as incurred.

Intangible assets are measured at cost less accumulated amortisation and impairment, and are amortised on a straight-line basis over their useful lives as follows:

PrepaymentsPrepayments represent payments in advance of receipt of goods and services or that part of expenditure made in one accounting period covering a term extending beyond that period.

2015 2014

Capitalised software development cost (years) 3 - 10 3 - 10

1.14 Liabilities Payables Payables consist of: • contractual payables, such as accounts payable, and unearned income including deferred income from concession arrangements. Accounts payable represent liabilities for goods and services provided to the Institute prior to the end of the financial year that are unpaid, and arise when the Institute becomes obliged to make future payments in respect of the purchase of those goods and services; and• statutory payables, such as goods and services tax and fringe benefits tax payables.

Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost. Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from a contract.

Provisions Provisions are recognised when the Institute has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. Employee benefits Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered to the reporting date. (i) Wages and salaries, and annual leave Liabilities for wages and salaries, including non-monetary benefits annual leave, is recognised in the provision for employee benefits

as ‘current liabilities’, because the Institute does not have an unconditional right to defer settlements of these liabilities. Depending on the expectation of the timing of settlement, liabilities for wages and salaries, annual leave are measured at:• undiscounted value - if the Institute expects to wholly settle within 12 months; or• present vale - if the Institute does not expect to wholly settle within 12 months.

(ii) Long service leave Liability for long service leave (LSL) is recognised in the provision for employee benefits.

Unconditional LSL is disclosed in the notes to the financial statements as a current liability, even where the Institute does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months. The components of the current LSL liability are measured at: • nominal value (undiscounted value) - component that is expected to be wholly settled within 12 months; and • present value (discounted value) - component that is not expected to be wholly settled within 12 months. Conditional LSL is disclosed as non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. This non-current LSL liability is measured at present value. Any gain or loss following revaluation of the present value of non-current LSL liability is recognised as a transaction, except to the extent that a gain or loss arises due to changes in bond interest for which it is then recognised as an other economic flow. (iii) Termination benefits Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee decides to accept an offer of benefits in exchange for termination of employment. The Institute recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to present value. Employee benefits on-costs Provision for on-costs such as payroll tax, workers compensation and superannuation are recognised separately from the provision of employee benefits.



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Performance Payments Performance payments for the Institute’s Executive Officers are based on a percentage of the annual salary package provided under the contract of employment. A liability is provided for under the term of the contracts at reporting date and paid out in the next financial year. Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost using the effective interest rate method. Derecognition of financial liabilities A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.

1.15 Commitments Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed by way of note at their nominal value and inclusive of the GST payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant individual projects are stated. These future expenditures cease to be disclose as commitments once the related liabilities are recognised on the balance sheet.

1.16 Contingent assets and contingent liabilities Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note (refer to Note 16) and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of the GST receivable or payable respectively. 1.17 Equity Contributed capital Funding that are in the nature of contributions by the Victorian State government are treated as contributed capital when designated in accordance with UIG Interpretation 1038 Contribution by Owners Made to Wholly-Owned Public Sector Entities. Commonwealth capital funds are not affected and are treated as income. Transfers of net assets arising from administrative restructurings are treated as distributions to or contributions by owners. 1.18 Materiality In accordance with Accounting Standard AASB 108 Accounting Policies, Changes in Accounting Estimates and Error, when an Australian Accounting Standard specifically applies to a transaction, other event or condition, the accounting policies applied to that item shall be determined by applying the Standard, unless the effect of applying them is immaterial.

Accounting policies will be considered material if their omission or misstatement could, either individually or collectively, influence the economic decisions that users make on the basis of the financial statements. Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. 1.19 Rounding of amounts Amounts in the financial report have been rounded to the nearest thousand dollars, unless otherwise stated. 1.20 Comparative information When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. 1.21 Change in accounting policy Subsequent to the 2014 reporting period, the following new and revised accounting standards have been adopted in the current period with their financial impact detailed as below. • AASB 2015-7 Amendments to Australian Accounting Standards - Fair Value AASB 2015-7 Amendments to Australian Accounting Standards - Fair Value Disclosure of Not-for-Profit Public Sector Entities: The Minister for Finance has approved the early adoption of AASB 2015-7. This enables Victorian not-for-profit public sector entities to benefit from some limited scope exemptions in relation to the fair value disclosure for the 2014-15 reporting period. The Institute has chosen to apply this early adoption. For fair value measurements that have been categorised within Level 3 of the fair value hierarchy, the Institute is no longer required to provide quantitative information about the ‘significant unobservable inputs’ used in determining the fair value measurement. 1.22 New and revised AASBs in issue but not yet effective Certain new accounting standards and interpretations have been published that are not mandatory for the 31 December 2015 reporting period. As at 31 December 2015 the following standards and interpretations (applicable to the Institute) had been issued but were not mandatory for financial year ending 31 December 2015. The Institute has not, and does not intend to, adopt these standards early.

Standard/Interpretation Summary

Applicable for annual reporting periods beginning on

Impact on public sector entity financial statements

AASB 9 Financial Instruments

The key changes include the simplified requirements for the classification and measurement of financial assets, a new hedging accounting model and a revised impairment loss model to recognise impairment losses earlier, as opposed to the current approach that recognises impairment only when incurred.

1-Jan-18 The assessment has identified that the financial impact of available for sale (AFS) assets will now be reported through other comprehensive income (OCI) and no longer recycled to the profit and loss.

While the preliminary assessment has not identified any material impact arising from AASB 9, it will continue to be monitored and assessed.

AASB 14 Regulatory Deferral Accounts

AASB 14 permits first-time adopters of Australian Accounting Standards who conduct rate-regulated activities to continue to account for amounts related to rate regulation in accordance with their previous GAAP.

1-Jan-16 The assessment has indicated that there is no expected impact , as those that conduct rate-regulated activities have already adopted Australian Accounting Standards.

AASB 15 Revenue from Contracts with Customers

The core principle of AASB 15 requires an entity to recognise revenue when the entity satisfies a performance obligation by transferring a promised good or service to a customer.

1-Jan-17

(Exposure Draft 263 – potential deferral to 1 Jan 2018)

The changes in revenue recognition requirements in AASB 15 may result in changes to the timing and amount of revenue recorded in the financial statements. The Standard will also require additional disclosures on service revenue and contract modifications.

A potential impact will be the upfront recognition of revenue from licenses that cover multiple reporting periods. Revenue that was deferred and amortised over a period may now need to be recognised immediately as a transitional adjustment against the opening returned earnings if there are no former performance obligations outstanding.

AASB 1056 Superannuation Entities

AASB 1056 replaces AAS 25 Financial Reporting by Superannuation Plans. The standard was developed in light of changes in recent years, developments in the superannuation industry and Australia’s adoption of IFRS.

Some of the key changes in AASB 1056 include: · the level of integration between AASB 1056 and other AASB standards · a revised definition of a superannuation entity · revised and consistent content for the financial statements · use of fair value rather than net market value for measuring assets and liabilities · revised member liability recognition and measurement requirements · revised disclosure principles

1-Jul-16 The assessment has indicated that there will be no impact on the entity, as the Accounting Standard only affects superannuation entities own reporting.

AASB 2014-1 Amendments to Australian Accounting Standards [Part E Financial Instruments]

Amends various AASs to reflect the AASB’s decision to defer the mandatory application date of AASB 9 to annual reporting periods beginning on or after 1 January 2018 as a consequence of Chapter 6 Hedge Accounting, and to amend reduced disclosure requirements.

1-Jan-18 This amending standard will defer the application period of AASB 9 to the 2018-19 reporting period in accordance with the transition requirements.



50

Standard/Interpretation

Summary Applicable for annual reporting periods beginning on

Impact on public sector entity financial statements

AASB 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation

[AASB 116 & AASB 138]

Amends AASB 116 Property, Plant and Equipment and AASB 138 Intangible Assets to:· establish the principle for the basis of depreciation and amortisation as being the expected pattern of consumption of the future economic benefits of an asset; · prohibit the use of revenue-based methods to calculate the depreciation or amortisation of an asset, tangible or intangible, because revenue generally reflects the pattern of economic benefits that are generated from operating the business, rather than the consumption through the use of the asset.

1-Jan-16 The assessment has indicated that there is no expected impact as the revenue-based method is not used for depreciation and amortisation.

AASB 2014-9 Amendments to Australian Accounting Standards – Equity Method in Separate Financial Statements

[AASB 1, 127 & 128]

Amends AASB 127 Separate Financial Statements to allow entities to use the equity method of accounting for investments in subsidiaries, joint ventures and associates in their separate financial statements.

1-Jan-16 The assessment indicates that there is no expected impact as the entity will continue to account for the investments in subsidiaries, joint ventures and associates using the cost method as mandated if separate financial statements are presented in accordance with FRD 113A.

AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture [AASB 10 & AASB 128]

AASB 2014-10 amends AASB 10 Consolidated Financial Statements and AASB 128 Investments in Associates to ensure consistent treatment in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The amendments require that: · a full gain or loss to be recognised by the investor when a transaction involves a business (whether it is housed in a subsidiary or not);and · a partial gain or loss to be recognised by the parent when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary.

1-Jan-16 The assessment has indicated that there is limited impact, as the revisions to AASB 10 and AASB 128 are guidance in nature.

AASB 2015-6 Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities

[AASB 10, AASB 124 & AASB 1049]

The Amendments extend the scope of AASB 124 Related Party Disclosures to not-for-profit public sector entities. A guidance has been included to assist the application of the Standard by not-for-profit public sector entities.

1-Jan-16 The amending standard will result in extended disclosures on the entity’s key management personnel (KMP), and the related party transactions.

In addition to the new standards above, the AASB has issued a list of amending standards that are not effective for the 2015 reporting period (as listed below). In general, these amending standards include editorial and references changes that are expected to have insignificant impacts on public sector reporting. The AASB Interpretation in the list below is also not effective for the 2015 reporting period and is considered to have insignificant impacts on public sector reporting.

• AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010). • AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments• AASB 2014 1 Amendments to Australian Accounting Standards [PART D – Consequential Amendments arising from AASB 14 Regulatory Deferral Accounts only]

• AASB 2014 3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations [AASB 1 & AASB 11]• AASB 2014 5 Amendments to Australian Accounting Standards arising from AASB 15• AASB 2014 6 Amendments to Australian Accounting Standards – Agriculture: Bearer Plants [AASB 101, AASB 116, AASB 117, AASB 123, AASB 136, AASB 140 & AASB 141]• AASB 2014 7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014)• AASB 2014 8 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) – Application of AASB 9 (December 2009) and AASB 9 (December 2010) [AASB 9 (2009 & 2010)]

• AASB 2015 2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 [AASB 7, AASB 101, AASB 134 & AASB 1049]• AASB 2015 3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality• AASB 2015 4 Amendments to Australian Accounting Standards – Financial Reporting Requirements for Australian Groups with a Foreign Parent [AASB 127, AASB 128] • AASB 2015 5 Amendments to Australian Accounting Standards – Investment Entities: Applying the Consolidation Exception [AASB 10, AASB 12, AASB 128]

Note 2 Income from transactions

2 Income from transactions


2015 $’000

2014 $’000

2015 $’000

2014 $’000

(a) Grants and other transfers (other than contributions by owners)(i) Government contributions - operatingState government - contestable 11,480 11,125 11,480 11,125Other contributions by State Government 10,398 3,635 10,398 3,635

Total government contributions -operating 21,878 14,760 21,878 14,760

(ii) Government contributions - capitalState capital 5,420

288

5,420

-

Total government contributions - capital 5,420 288 5,420 -

Total government contributions 27,298 15,048 27,298 14,760

(b) Sales of goods and services Student fees and charges 5,281

5,049

5,279 5,049

Rendering of services Fee for service - Government 383 279

383 279

Fee for service - International operations - onshore 823 792 823 792

Fee for service - other 1,335 1,356 151 217

Total rendering of services 2,541 2,427 1,357 1,288

Other non-course fees and chargesSale of goods 1,613 1,288 1,608 1,288Total other fees and charges 1,613 1,288 1,608 1,288

Total revenue from sale of goods and services 9,435 8,764 8,244 7,625

(c) Interest Interest from financial assets not at fair value through P/L:Interest on bank deposits 111 90 108

88 Total interest from financial assets not at fair value through P/L 111 90 108 88

Net interest income 111 90 108 88

(d) Other incomeDonations, bequests and contributions 4

75 2 74

Other revenue 38 46 22 18

Total other income 42 121 24 92



52

Note 3 Expenses from transactions

3 Expenses from transactions


2015 $’000

2014 $’000

2015 $’000

2014 $’000

(a) Employee expenses Salaries, wages, overtime and allowances 15,389 16,390 14,391 15,396Superannuation 1,536 1,490 1,535 1,490

Payroll tax 722 791 722 791

Worker’s compensation 145 175 145 175

Long service leave 283 197 283 197

Annual leave (37) 20 (33) 17

Other 68 99 68 99

Total employee expenses 18,106 19,162 17,111 18,165

(b) Depreciation and amortisation Depreciation of non-current assets Buildings 627

631 613

620Plant and equipment 508 621 504 618

Motor vehicles 130 151 130 151

Library collections 19 22 19 22

Total depreciation 1,284 1,425 1,266 1,411

Amortisation of non-current physical and intangible assets Software 428

798

428 798

Total amortisation 428 798 428 798

Total depreciation and amortisation 1,712 2,223 1,694 2,209

(c) Grants and other transfers (other than contributions by owners) Grants and subsidies apprentices and trainees - 23 - 23Total grants and other transfers - 23 - 23

(d) Supplies and services Purchase of supplies and consumables 977 956 916

895

Communication expenses 632 323 632 322

Contract and other services 4,249 4,479 4,245 4,469

Cost of goods sold/distributed (ancillary trading) 388 480 388 479

Building repairs and maintenance 1,024 997 954 968

Minor equipment 359 444 354 444

Fees and charges 700 309 697 306

Total supplies and services 8,329 7,988 8,186 7,883

(e) Other operating expenses General expenses Marketing and promotional expenses 344 223 344 223Occupancy expenses 698 684 687 676

Audit fees and services 118 141 114 93

Staff development 213 104 210 103

Travel and motor vehicle expenses 488 590 488 590

Motor vehicle taxes 28 60 28 60

Other expenses 395 511 385 501

Total other expenses 2,284 2,313 2,256 2,246

Note 4 Other economic flows included in net result

4 Other economic flows included in net result


2015 $’000

2014 $’000

2015 $’000

2014 $’000

(a) Net gain/(loss) on non-financial assets (including PPE and intangible assets) Impairment of property plant and equipment (including intangible assets) - (2,723) - (2,723)Net gain on disposal of property plant and equipment (37) 8 (37) 8

Total net gain/(loss) on non-financial assets (37) (2,715) (37) (2,715)

(b)Net gain/(loss) on financial instruments Loans and receivables (55) (57) (55) (48)Total net gain/(loss) on financial instruments (55) (57) (55) (48)

(c) Other gains/(losses) from other economic flows Net gain/(loss) arising from revaluation of long service leave liability (122) (193) (110) (186)Total other gains/(losses) from other economic flows (122) (193) (110) (186)

Note 5 Receivables

5 Receivables


2015 $’000

2014 $’000

2015 $’000

2014 $’000

Current receivables Contractual Sale of goods and services 745 810 741 806Provision for doubtful contractual receivables (See also Note 5(a) below) (15) (55) (14) (55)Amount receivable from:related parties - Skills Victoria 777 1,779 777 1,779related parties - TAFE Kids - - 95 106Total contractual 1,507 2,534 1,599 2,636

Statutory GST Input tax credit recoverable 227 80 221 80Total statutory 227 80 221 80

Total current receivables 1,734 2,614 1,820 2,716

Total receivables 1,734 2,614 1,820 2,7161 The average credit period for sales of goods and services and for other receivables is 30 days. A provision has been made for estimated

non-recoverable amounts from the sale of goods determined by reference to past default experience

2 Ageing analysis of contractual receivables Please refer to Note 19-2 for the ageing analysis of contractual receivables

3 Nature and extent of risk arising from contractual receivables Please refer to Note 19-2 for the nature and extent of credit risk arising from contractual receivables.

(a) Movement in the provision for doubtful contractual receivables

Consolidated Institute2015

$’0002014

$’0002015

$’0002014

$’000Balance at beginning of the year 55 33 55 28

Bad debts recovered during the year (13) (3) (11) (3)

Increase in provision recognised in the net result 28 82 25 78

Bad debts written off during the year (55) (57) (55) (48)

Balance at end of the year 15 55 14 55



54

Note 6 Investments and other financial assets

6 Investments and other financial assets


2015 $’000

2014 $’000

2015 $’000

2014 $’000

Current investments and other financial assets Equities and managed investment schemes: Australian dollar term deposits 70 69 - -Total current investments and other financial assets 70 69 - -

Term deposits: Australian dollar term deposits

36 34 36 34

Total term deposits 36 34 36 34

Total non-current investments and other financial assets 36 34 36 34

Total investments and other financial assets 106 103 36 34

Note 7 Inventories

7 Inventories


2015 $’000

2014 $’000

2015 $’000

2014 $’000

Current List type of inventories held Supplies and consumables - at cost 68 44 68 44

Bungalows and SuniPODs 40 94 40 94Total current inventories 108 138 108 138

Note 8 Property, plant and equipment In accordance with government purpose classifications, the Institute’s property, plant and equipment are assets used for the purpose of education. Property, plant & equipment includes all operational assets.

(a) Consolidated

Land at fair value1 Buildings

Assets under construction

Plant and equipment

Motor Vehicles

Cultural Assets Library Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000At 1 January 2014 Cost - 112 723 1,724 598 - 76 3,233

Valuation 4,728 25,388 - 8,936 839 93 728 40,712

Accumulated depreciation - (636) - (7,911) (823) - (697) (10,067)

Net book amount 4,728 24,864 723 2,749 614 93 107 33,878

Year ended 31 December 2014 Opening net book amount 4,728 24,864 723 2,749 614 93 107 33,878Additions - - 1,949 13 220 - - 2,182Disposals - - - - (157) - - (157)Transfer into/(out of) assets under construction - 738 (2,595) 1,749 108 - - - Depreciation2 - (631) - (621) (151) - (22) (1,425)Closing net book amount 4,728 24,971 77 3,890 634 93 85 34,478

At 31 December 2014Cost - 850 77 3,486 696 - 76 5,185Valuation 4,728 25,388 - 8,936 839 93 728 40,712Accumulated depreciation - (1,267) - (8,532) (901) - (719) (11,419)Net book amount 4,728 24,971 77 3,890 634 93 85 34,478



Plant and equipment

Motor Vehicles


$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000Year ended 31 December 2015Opening net book amount 4,728 24,971 77 3,890 634 93 85 34,478

Additions - - 2,715 41 201 - - 2,957

Disposals - (59) - - (110) - - (169)Transfer into/(out of) assets under construction - 310 (355) 45 - - - (0)

Depreciation2 - (627) - (508) (130) - (19) (1,284)

Closing net book amount 4,728 24,595 2,437 3,468 595 93 66 35,982

At 31 December 2015Cost - 1,097 2,437 3,572 707 - 76 7,889Valuation 4,728 25,388 - 8,936 839 93 728 40,712Accumulated depreciation - (1,890) - (9,040) (951) - (738) (12,619)Net book value at the end of the financial year 4,728 24,595 2,437 3,468 595 93 66 35,982

Notes1 Computers are now included in Plant and Equipment

(b) Institute



Plant and equipment

Motor Vehicles


$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000At 1 January 2014 Cost - 112 714 1,708 598 - 76 3,208

Valuation 4,728 24,946 - 8,910 839 93 727 40,243

Accumulated depreciation - (625) - (7,897) (823) - (696) (10,041)

Net book amount 4,728 24,433 714 2,721 614 93 107 33,410

Year ended 31 December 2014 Opening net book amount 4,728 24,433 714 2,721 614 93 107 33,410Additions - - 1,928 8 220 - - 2,156Disposals - - - - (157) - - (157)Transfer into/(out of) assets under construction - 738 (2,595) 1,749 108 - - -Depreciation2 - (620) - (618) (151) - (22) (1,411)

Closing net book amount 4,728 24,551 47 3,860 634 93 85 33,998

At 31 December 2014 Cost - 850 47 3,465 696 - 76 5,134Valuation 4,728 24,946 - 8,910 839 93 727 40,243Accumulated depreciation - (1,245) - (8,515) (901) - (718) (11,379)Net book amount 4,728 24,551 47 3,860 634 93 85 33,998

Year ended 31 December 2015 Opening net book amount 4,728 24,551 47 3,860 634 93 85 33,998Additions - - 2,390 35 203 - - 2,628Disposals - 59 - - (110) - - (169)Transfer into/(out of) assets under construction - - - - - - - -Depreciation - (613) - (504) (130) - (19) (1,266)Closing net book amount 4,728 23,879 2,437 3,391 597 93 66 35,191



56

Note 8 Property, plant and equipment (continued)In accordance with government purpose classifications, the Institute’s property, plant and equipment are assets used for the purpose of education. Property, plant & equipment includes all operational assets.

(b) Institute



Plant and equipment

Motor Vehicles


$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000At 31 December 2015 Cost - 787 2,437 3,500 709 - 76 7,509

Valuation 4,728 24,946 - 8,910 839 93 727 40,243

Accumulated depreciation - (1,854) - (9,019) (951) - (737) (12,561)Net book value at the end of the financial year 4,728 23,879 2,437 3,391 597 93 66 35,191

Notes 1 Computers are now included in Plant and Equipment

(c) Fair value measurement hierarchy for assets as at 31 December 2015

Carrying amount as at 31 Dec 2015

Fair value hierarchy Level 1Quoted Prices

Level 2Observable

Price Inputs

Level 3Un-observable

Inputs

$’000 $’000 $’000 $’000

Classified in accordance with the fair value hierarchy, see Note 1Land at fair value: Non specialised land 600 - 600 -

Specialised land 4,128 - - 4,128

Total of land at fair value 4,728 - 600 4,128

Buildings at fair value: Non specialised buildings - - - -

Specialised buildings 24,595 - - 24,595

Heritage assets - - - -

Total of buildings at fair value 24,595 - - 24,595

Plant, equipment and vehicles at fair value: Vehicles1 595 - - 595

Plant and equipment 3,468 - - 3,468

Total of plant, equipment and vehicles at fair value 4,063 - - 4,064

Cultural assets at fair value: Artworks 93 - - 93

Total of Cultural assets at fair value 93 - - 93

Library assets at fair value: Library collections 66 - - 66

Total of Library assets at fair value 66 66

Transfers between fair value hierarchy levels during the year There were no transfers between Levels during the year.

(d) Valuations of Property, Plant and Equipment Fair value assessments have been performed at 31 December 2015 for motor vehicles, plant & equipment and library collections. This assessment demonstrated that fair value was materially similar to carrying value, and therefore a full revaluation was not required this year. Buildings were last revalued as at 31 December 2012 and land was revalued as at 31 December 2012 and 31 December 2013, demonstraining that the fair value of land was required to be materially reduced. The next scheduled full revaluation for this purpose Institute will be conducted in 2017. Vehicles Vehicles are valued using the depreciated replacement cost method. The Institute acquires new vehicles and at times disposes of them before the end of their economic life. The process of acquisition, use and disposal in the market is managed by experienced fleet managers in the Institute who set relevant depreciation rates during use to reflect the utilisation of the vehicles. Plant and equipment Plant and equipment is held at fair value. When plant and equipment is specialised in use, such that it is rarely sold other than as part of a going concern, fair value is determined using the depreciated replacement cost method. Non specialised land, non specialised buildings and artworks Non specialised land, non specialised buildings and artworks are valued using the market approach. Under this valuation method, the assets are compared to recent comparable sales or sales of comparable assets which are considered to have nominal or no added improvement value. For non specialised land and non specialised buildings, an independent valuation was performed by independent valuers Eishold Property Real Estate Consultant’s on behalf of the Valuer General Victoria to determine the fair value using the market approach. Valuation of the assets was determined by analysing comparable sales and allowing for share, size, topography, location and other relevant factors specific to the asset being valued. From the sales analysed, an appropriate rate per square metre has been applied to the subject asset. The effective date of the valuation is 31 December 2012.

For artwork, valuation of the assets is determined by a comparison to similar examples of the artists work in existence throughout Australia and research on prices paid for similar examples offered at auction or through art galleries in recent years. No revaluation was performed for artwork for the financial period ending at 31 December 2015 To the extent that non specialised land, non specialised buildings and artworks do not contain significant, unobservable adjustments, these assets are classified as Level 2 under the market approach. Specialised land and specialised buildings The market approach is also used for specialised land, although is adjusted for the community service obligation (CSO) to reflect the specialised nature of the land being valued. The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that is also equally applicable to market participants. This approach is in light of the highest and best use consideration required for fair value measurement, and takes into account the use of the asset that is physically possible, legally permissible, and financially feasible. As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified as Level 3 assets. For the Institute’s majority of specialised buildings, the depreciated replacement cost method is used, adjusting for the associated depreciations. As depreciation adjustments are considered as significant, unobservable inputs in nature, specialised buildings are classified as Level 3 fair value measurements. An independent valuation of the Institute’s specialised land and specialised buildings was performed by the Valuer General Victoria. The valuation was performed using the market approach adjusted for CSO. The effective date of the valuation is 31 December 2012. There were no changes in valuation techniques throughout the period to 31 December 2015. For all assets measured at fair value, the current use is considered the highest and best use.



58

Note 8 Property, plant and equipment (continued)In accordance with government purpose classifications, the Institute’s property, plant and equipment are assets used for the purpose of education. Property, plant & equipment includes all operational assets.

(e) Reconciliation of Level 3 fair value as at 31 December 2015

Specialised land

Non - Specialised

buildingsPlant and

equipmentMotor

VehiclesCultural

Assets Library Total$’000 $’000 $’000 $’000 $’000 $’000 $’000

Opening balance 4,128 24,971 3,890 634 93 85 33,801

Purchases (sales) - 251 86 91 - - 428

Depreciations - (627) (508) (130) - (19) (1,284)

Subtotal 4,128 24,595 3,468 595 93 66 32,945

Closing balance 4,128 24,595 3,468 595 93 66 32,945Unrealised gains/ (losses) on non financial assets - - - - - - -

(f) Description of significant unobservable inputs to Level 3 valuations Valuation technique

Significant unobservable inputs

Range (weighted average)

Sensitivity of fair value measurement to changes in significant unobservable inputs

Specialised land Market approach Community Service Obligation (CSO) adjustment

50–70% (60%)1 A significant increase or decrease in the CSO adjustment would result in a significantly lower (higher) fair value.

Specialised buildings Depreciated replacement cost

Direct cost per square metre

Useful life of specialised buildings

$1 000–$1 500 /m2

($1 300)

30-60 years (45 years)

A significant increase or decrease in direct cost per square metre adjustment would result in a significantly higher or lower fair value.

A significant increase or decrease in the estimated useful life of the asset would result in a significantly higher or lower valuation.

Plant and equipment Depreciated replacement cost

Cost per unit

Useful life plant and equipment

$3 000–$4 000 per unit ($3 500 per unit)

5–10 years (5 years)

A significant increase or decrease in cost per unit would result in a significantly higher or lower fair value.


Motor vehicles Depreciated replacement cost

Cost per unit

Useful life of vehicles

$9 000–$10 000 per unit

($9 500 per unit)

1–5 years (3 years)

A significant increase or decrease in cost per unit would result in a significantly higher or lower fair value.


Note 9 Intangible assets

9 Intangible Assets


Software $’000

Total $’000

Software $’000

Total $’000

Year ended 31 December 2014 Gross carrying amountOpening balance 8,035 8,035 8,035 8,035Additions - - - -

Disposals (244) (244) (244) (244)

Impairment1 (3,398) (3,398) (3,398) (3,398)

Closing balance 4,393 4,393 4,393 4,393

Accumulated depreciation, amortisation and impairmentOpening balance

(909) (909) (909) (909)

Amortisation of intangible non produced assets (798) (798) (798) (798)

Disposals 242 242 242 242

Impairment1 677 677 677 677

Closing balance (788) (788) (788) (788)

Net book value at end of financial year 3,605 3,605 3,605 3,605


Software $’000

Total $’000

Software $’000

Total $’000

Year ended 31 December 2014 Gross carrying amountOpening balance 4,393 4,393 4,393 4,393Additions 136 136 136 136

Disposals - - - -

Impairment1 - - - -

Closing balance 4,529 4,529 4,529 4,529

Accumulated depreciation, amortisation and impairmentOpening balance

(788) (788) (788) (788)

Amortisation of intangible non produced assets (428) (428) (428) (428)

Disposals - - - -

Impairment1 - - - -

Closing balance (1,216) (1,216) (1,216) (1,216)

Net book value at end of financial year 3,313 3,313 3,313 3,313

Notes 1 The consumption of intangible produced assets is included in ‘depreciation’ line item, where the consumption of the intangible non produced assets is included in ‘net gain/(loss) on non financial assets’ line item on the comprehensive operating statement.



60

Note 10 Other non-financial assets

10 Other non-financial assets


2015 $’000

2014 $’000

2015 $’000

2014 $’000

Current other non-financial assets Prepayments 524 244 524 244Total current other non-financial assets 524 244 524 244

Total other non-financial assets 524 244 524 244

Note 11 Payables

11 Payables


2015 $’000

2014 $’000

2015 $’000

2014 $’000

Current Contractual Supplies and services1 1,464 1,632 1,414 1,627Greener Government Building 209 190 209 190Revenue in Advance 667 3,360 653 3,344Advances from Government - 225 - 225

2,340 5,407 2,276 5,386

StatutoryGST payable 126 87 126 87Total current payables 2,466 5,494 2,402 5,473

Non-current ContractualGreener Government Building 1,045 1,140 1,045 1,140Total non-current payables 1,045 1,140 1,045 1,140Total payables 3,511 6,634 3,447 6,613

Notes 1 The average credit period is 30 days. (a) Maturity analysis of contractual payables Please refer to Note 19(iii) for the maturity analysis of contractual payables. (b) Nature and extent of risk arising from contractual payables Please refer to Note 19(iii) for the nature and extent of risks arising from contractual payables.

Note 12 Provisions

12 Provisions


2015 $’000

2014 $’000

2015 $’000

2014 $’000

Current provisions Employee benefits (Note 12(a))1 Annual leave (Note 12(a)): - - - -Unconditional and expected to wholly settle within 12 months2 416 447 385 414Long service leave(Note 12(a)): - - - -Unconditional and expected to wholly settle within 12 months2 261 238 254 234Unconditional and expected to wholly settle after 12 months2 1,513 1,381 1,468 1,355

2,190 2,066 2,107 2,003

Provisions for on costs (Note 12(a) and Note 12(b)): - - - -

Unconditional and expected to wholly settle within 12 months2 105 106 101 102Unconditional and expected to wholly settle after 12 months2 234 217 232 214

339 323 333 316Total current provisions 2,529 2,389 2,440 2,319

Non-current Employee benefits (Note 12(a))1 378 425 363 402On costs (Note 12(a) and Note 12(b)) 59 66 58 64

Total non-current provisions 437 491 421 466

Total provisions 2,966 2,880 2,861 2,785

(a) Employee benefits and on costs1


2015 $’000

2014 $’000

2015 $’000

2014 $’000

Current employee benefitsAnnual leave 416 447 385 414Long service leave 1,774 1,619 1,722 1,589

2,190 2,066 2,107 2,003

Non current employee benefits - - - -

Long service leave 378 425 363 402Total employee benefits 378 425 363 402

Current on costs 339 323 333 316Non current on costs 59 66 58 64

Total on costs 398 389 391 380

Total employee benefits and on costs 2,966 2,880 2,861 2,785

Notes 1 Employee benefits consist of annual leave and long service leave accrued by employees. On costs such as payroll tax and workers’ compensation insurance are not employee benefits and are recognised as a separate provision. 2 Amounts are measured at present values.



62

Note 12 Provisions (continued)

(b(i)) Movement in provisions - Consolidated

2015

$’000

Annual LeaveLong Service

Leave On-costs TotalOpening balance 447 2,044 388 2,879Additional provisions recognised 906 391 195 1,492Reductions arising from payments/other sacrifices of future economic benefits (937) (283) (184) (1,404)Closing balance 416 2,152 398 2,966

Current 416 1,774 339 2,529Non-current - 378 59 437

416 2,152 398 2,966

(b(ii)) Movement in provisions - Institute

2015

$’000

Annual LeaveLong Service

Leave On-costs TotalOpening balance 414 1,991 380 2,785Additional provisions recognised 824 378 180 1,382Reductions arising from payments/other sacrifices of future economic benefits (854) (283) (169) (1,306)Closing balance 385 2,085 391 2,861

Current 385 1,722 333 2,440Non-current - 363 58 421

385 2,085 391 2,861

Note 13 Reserves

13 Reserves


2015 $’000

2014 $’000

2015 $’000

2014 $’000

(a) Physical asset revaluation surplus1:Balance at 1 January 22,181 22,181 21,969 21,969Balance at 31 December 22,181 22,181 21,969 21,969

Net changes in reserves 22,181 22,181 21,969 21,969

Notes 1 The physical assets revaluation surplus arises on the revaluation of land and buildings.

Note 14 Cash flow information for the year ended 31 December 2015

14 Cash flow information


2015 $’000

2014 $’000

2015 $’000

2014 $’000

(a) Reconciliation of cash and cash equivalents Total cash and deposits disclosed in the balance sheet 5,228 2,608 4,964 2,084Balance as per cash flow statement 5,228 2,608 4,964 2,084

(b) Financing facilities


2015 $’000

2014 $’000

2015 $’000

2014 $’000

Unsecured bank overdraft facility, reviewed annually and payable at call Credit facilities 100 100 100 100Amount utilised - - - -Credit card facility 250 250 250 250Amount utilised 9 - 9 -

359 350 359 350

(c) Reconciliation of net result for the period


2015 $’000

2014 $’000

2015 $’000

2014 $’000

Net result for the year 6,241 (10,651) 6,225 (10,910)

Non cash movements:(Gain) /l oss on sale or disposal of non current assets 37 (82) 37 (76)Depreciation and amortisation of non current assets 1,712 2,223 1,694 2,209Impairment of non current assets - 2,723 - 2,723Net (gain)/loss on financial instruments 55 73 55 66Movements included in investing and financing activities: Movements in assets and liabilitiesDecrease / (increase) in trade receivables 826 4,290 843 4,242Decrease / (increase) in inventories 30 73 29 73Decrease / (increase) in other assets (283) 53 (282) 56Increase / (decrease) in payables and other liabilities (3,121) 1,738 (3,166) 1,765Increase / (decrease) in employee benefits 85 212 77 202Net cash flows from/(used in) operating activities 5,582 652 5,512 350



64

Note 15 Commitments for expenditure

15 Commitments for expenditure


2015 $’000

2014 $’000

2015 $’000

2014 $’000

(a) Capital expenditure commitments payable Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows: Property, Plant and Equipment Payable: Within one year 6,719 763 6,719 400Total Property, Plant and Equipment 6,719 763 6,719 400

GST reclaimable on the above (611) (69) (611) (36)

Net Commitments Property, Plant and Equipment 6,108 694 6,108 364

Total capital expenditure commitments 6,108 694 6,108 364(b) Non-cancellable operating lease commitments payable1 Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: Within one year 173 57 173 57Later than one year but not later than five years 7 16 7 16Total minimum lease payments in relation to non-cancellable operating leases 180 73 180 73GST reclaimable on the above (17) (7) (17) (7)

Net Commitments Non-cancellable Operating Leases 163 66 163 66

Total Commitments 6,271 760 6,271 430

Note 16 Contingent assets and contingent liabilities Contingent Liabilities 1 The Institute has given an undertaking to its fully owned subsidary, TAFE Kids Incorporated, to provide financial support to that organisation should the need arise.

Note 17 Superannuation Employees of the Institute are entitled to receive superannuation benefits and the Institute contributes to both defined benefit and defined contribution plans. The defined benefit plan(s) provides benefits based on years of service and final average salary. The Institute does not recognise any defined benefit liability in respect of the plan(s) because the entity has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance recognises and discloses the State’s defined benefit liabilities in its financial statements. However, superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the Statement of Comprehensive Income of the Institute. The name and details of the major employee superannuation funds and contributions made by the Institute are as follows:

17 Superannuation


2015 $’000

2014 $’000

2015 $’000

2014 $’000

Paid Contribution for the Year Defined benefit plans : State Superannuation Fund – revised and new 78 90 78 90Total defined benefit plans 78 90 78 90

Defined contribution plans: VicSuper

727 786 683 753

Other 623 586 585 573

Total defined contribution plans 1,350 1,372 1,268 1,326

Total paid contribution for the year 1,428 1,462 1,346 1,416

1 The Institute does not have any contributions outstanding to the above funds and there have been no loans made from the funds. The bases for contributions are determined by the various schemes. 2 The above amounts were measured as at 31 December of each year, or in the case of employer contributions they relate to the years ended 31 December.

Note 18 Trust account balances

18 Trust account balances


2015 $’000

2014 $’000

2015 $’000

2014 $’000

Trust account balances relating to Trust Accounts controlled and /or administered by the Institute: Cash and cash equivalents and investments Controlled trusts Dr Alan Antcliff Memorial Trust 36 34 36 34Total controlled trusts 36 34 36 34

Total cash and cash equivalents and investments 36 34 36 34

Trust accounts opened and closed by the Institute during 2015: There were no trust accounts opened or closed by the Institute during 2015.



66

Note 19 Financial instruments (i) Financial risk management objectives and policies The Institute’s financial instruments comprise cash assets, term deposits, receivables (excluding statutory receivables) and payables (excluding statutory payables).

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument is disclosed in Note 1 of the financial statements.

The Institute’s activities expose it to a variety of financial risks: market risk (interest rate risk ), credit risk and liquidity risk. Risk management is carried out by a central treasury unit with the Finance function of the Institute under policies approved by the Board. The Treasury Unit identifies, evaluates financial risks in close co-operation with the Institutes’s operating units. The Board provides written principles for overall risk management, as well as policies covering specific areas, such as interest rate risk, credit risk and investment of excess liquidity. The carrying amounts of the Institute’s contractual financial assets and financial liabilities by category are disclosed below:

Carrying amount of financial instruments by category Note


2015 $’000

2014 $’000

2015 $’000

2014 $’000

(a) Loans and receivables Cash and deposits 5,228 2,608 4,964

2,084

Receivables:Trade receivables 5 730 755 727 751Loans to third parties 5 777 1,779 872 1,885Investment and other financial assets: Term Deposits 6 106 103 36 34Total loans and receivables 6,841 5,245 6,599 4,753

(b) Financial liabilities at amortised cost: Payables: Supplies and services 11 1,464 1,632 1,414 1,627Other payables 11 1,254 1,555 1,254 1,554Total financial liabilities at amortised cost 2,718 3,187 2,668 3,181Total financial liabilities 2,718 3,187 2,668 3,181

Net holding gain/(loss) on financial instruments by category Note


2015 $’000

2014 $’000

2015 $’000

2014 $’000

(c) Impairment loss Financial assets - loans and receivables (55) (57) (55) (48)Total impairment loss (55) (57) (55) (48)

(ii) Credit risk Credit risk arises from the contractual financial assets of the Institute, which comprise cash and deposits, non-statutory receivables. The Institute’s exposure to credit risk arises from the potential default of a counter party on their contractual obligations resulting in financial loss to the Institute. Credit risk is measured at fair value and is monitored on a regular basis by the finance committee. The finance committee monitors credit risk by actively assessing the rating quality and liquidity of counterparties. The Institute does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into by the Institute. The trade receivables balance at 31 December 2015 and 31 December 2014 do not include any counterparties with external credit ratings. Customers are assessed for credit worthiness using the criteria detailed above. The Institute minimises credit risk in relation to student loans receivable in the following ways: - Employed a Credit Manager to follow up on debts In addition, the Institute does not engage in hedging for its contractual financial assets and mainly obtains contractual financial assets that are on fixed interest, except for cash assets, which are mainly cash at bank. The Institute’s policy is to only deal with banks with high credit ratings. Provision of impairment for contractual financial assets is recognised when there is objective evidence that the Institute will not be able to collect a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 90 days overdue, and changes in debtor credit ratings. The carrying amount of contractual financial assets recorded in the financial statements, net of any allowances for losses, represents the Institute’s maximum exposure to credit risk without taking account of the value of any collateral obtained. There are no material financial assets which are individually determined to be impaired. Currently the Institute does not hold any collateral as security nor credit enhancements relating to any of its financial assets. There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing credit risk or the methods used to measure this risk from the previous reporting period. Credit quality of contractual financial assets that are neither past due nor impaired 1

Financial institutions

(AA2 rating)

Government agencies

(AAA rating)Other

counter-party Total2015 $’000 $’000 $’000 $’000Cash and deposits 5,228 - - 5,228Receivables - 777 730 1,508Investments and other financial assets 106 - - 106Total contractual financial assets 2015 5,334 777 730 6,841

2014Cash and deposits 2,608 - - 2,608 Receivables - 1,779 755 2,535Investments and other financial assets 103 - - 103Total contractual financial assets 2014 2,711 1,779 755 5,246

NoteAgeing analysis of financial assets 1. There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The following table discloses the ageing analysis for the Institute’s financial assets.



68

Note 19 Financial instruments (continued)(ii) Credit risk

Carrying amount

Not past due and not

impaired

Past due but not impaired Impaired financial

assetsLess than

1 month1-3

months3 months

– 1 year1-5

years

$’000 $’000 $’000 $’000 $’000 $’000 $’0002015 Financial assets Receivables1: Trade receivables 745 567 112 37 29 - (15)Revenue receivables 777 777 - - - - - Investment and other financial assets: Term Deposits 106 106 - - - - - Total 2015 financial assets 1,628 1,451 112 37 29 - (15)

2014 Financial assets Receivables1: Trade receivables 810 617 94 17 82 - (55)Revenue receivables 1,779 1,779 - - - - -Investment and other financial assets: Term Deposits 103 103 - - - - -Total 2014 financial assets 2,692 2,499 94 17 82 - (55)

Note 1 Receivables and payables disclosed here exclude statutory receivables and statutory payables (e.g. amounts owing to/from Victorian Government, GST input tax credit recoverable and taxes payable).

(iii) Liquidity risk Liquidity risk is the risk that the Institute would be unable to meet its financial obligations as and when they fall due. The Institute operates under payments policy of settling financial obligations within 30 days and in the event of a dispute, making payments within 30 days from the date of resolution.

Ultimate responsibility for liquidity risk management rests with the institute’s governing body, which has built an appropriate liquidity risk management framework for the management of the short, medium and long-term funding and liquidity requirements. The institute manages liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

The Institute has also established a standby facility of $100,000 to provide short-term cash, if required. There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing liquidity risk or the methods used to measure this risk from the previous reporting period. Maturity analysis of financial liabilities The following table discloses the contractual maturity analysis for the Institute’s financial liabilities.

Carrying amount

Nominal amount

Maturity datesLess than

1 month1-3

months3 months

– 1 year1-5

years5+

years

$’000 $’000 $’000 $’000 $’000 $’000 $’0002015 Financial liabilities Payables1: Supplies and services 1,464 1,464 124 1,340 0Other payables 1,254 1,254 209 1,045Total 2015 financial liabilities 2,718 2,718 124 1,340 209 1,045 -

2014 Financial liabilities Payables1: Supplies and services 1,632 1,632 587 1,042 2 1Other payables 1,555 1,555 - - 415 1,140Total 2014 financial liabilities 3,187 3,187 587 1,042 417 1,141 -

Note Receivables and payables disclosed here exclude statutory receivables and statutory payables (e.g. amounts owing to/from Victorian Government, GST input tax credit recoverable and taxes payable).



70

Note 19 Financial instruments (continued)(iv) Market risk The Institute in its daily operations is exposed to a number of market risks. Market risks relate to the risk that market rates and prices will change and that this will have an adverse affect on the operating result and/or net worth of the Institute. e.g. an adverse movement in interest rates or foreign currency exchange rates.

The Institute’s exposures to market risk are primarily through foreign currency risk, interest rate risk and equity price risk. Objectives, policies and processes used to manage each of these risks are disclosed below. The Board ensures that all market risk exposure is consistent with the Institute’s business strategy and within the risk tolerance of the Institute. Regular risk reports are presented to the Board.

There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing market risk or the methods used to measure this risk from the previous reporting period. Interest rate risk Interest rate risk arises from the potential for a change in interest rates to change the expected net interest earnings in the current reporting period and in future years, or cause a fluctuation in the fair value of the financial instruments. Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates. The Institute does not hold any interest bearing financial instruments that are measured at fair value, and therefore has no exposure to fair value interest rate risk.

Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Institute has minimal exposure to cash flow interest rate risk through its cash and deposits that are at floating rate. There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing interest rate risk or the methods used to measure this risk from the previous reporting period. Interest rate movements have not been sufficiently significant during the year to have an impact on the Institute’s year end result. The Institute’s exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities are set out in the financial instrument composition and maturity analysis table below.

Financial instrument composition and interest rate exposure

Consolidated 2015

Weighted average

effective rate

Total Carrying Amount per

Balance Sheet

Interest rate exposureFloating

interest rateFixed

interest rateNon-Interest

Bearing

% $’000 $’000 $’000 $’000Financial assets Cash and deposits 2.12 5,228 5,228 - Receivables: Trade receivables - 730 - 730Loans to third parties - 777 - 777Investment and other financial assets: Term Deposits 3.84 106 106 -Total financial assets 6,841 5,334 - 1,508

Financial liabilities Payables: Supplies and services - 1,464 - - 1,464Other payables - 1,254 - - 1,254 Total financial liabilities - 2,718 - - 2,718

Consolidated 2014

Weighted average

effective rate

Total Carrying Amount per

Balance Sheet

Interest rate exposureFloating

interest rateFixed

interest rateNon-Interest

Bearing

% $’000 $’000 $’000 $’000Financial assets Cash and deposits 2.63 2,608 1,703 - 905Receivables: Trade receivables - 755 - - 755Loans to third parties - 1,779 - - 1,779 Investment and other financial assets: Term Deposits 3.82 103 103Total financial assets 5,245 1,806 - 3,439

Financial liabilities Payables: Supplies and services - 1,632 - - 1,632Other payables - 1,555 - - 1,555Total financial liabilities - 3,187 - - 3,187

Sensitivity analysis and assumptions The Institute’s sensitivity to market risk is determined based on the observed range of actual historical data for the preceding five year period, with all variables other than the primary risk variable held constant. The Institute’s fund managers cannot be expected to predict movements in market rates and prices. Sensitivity analyses shown are for illustrative purposes only. The following movements are reasonably possible’ over the next 12 months: • a movement of 50 basis points up and down (2015: 50 basis points up and down) in market interest rates (AUD) The following tables show the impact on the Institute’s net result and equity for each category of financial instrument held by the Institute at the end of the reporting period as presented to key management personnel, if the above movements were to occur.

Consolidated 31 December 2015

Carrying amount

Interest rate risk

- 50 basis points + 50 basis points

$’000Result $’000

Equity $’000

Result $’000

Equity $’000

Contractual financial assets Cash and deposits 5,228 (26) (26) 26 26Receivables 1,508 - - - - Investments 106 (1) (1) 1 1Total increase / (decrease) in financial assets 6,842 (27) (27) 27 27

Contractual financial liabilities Payables 2,719 - - - - Total increase / (decrease) in financial liabilities 2,719 - - - -Total increase / (decrease) 9,561 (27) (27) 27 27



72

Note 19 Financial instruments (continued)

Consolidated 31 December 2014

Carrying amount

Interest rate risk

- 50 basis points + 50 basis points

$’000Result $’000

Equity $’000

Result $’000

Equity $’000

Contractual financial assets Cash and cash equivalents 2,608 (9) (9) 9 9Receivables 2,535 - - - - Investments 103 (1) (1) 1 1Total increase / (decrease) in financial assets 5,246 (9) (9) 9 9

Contractual financial liabilities Payables 3,187 - - - -Total increase / (decrease) in financial liabilities 3,187 - - - -Total increase / (decrease) 8,433 (9) (9) 9 9

(vi) Fair value estimation The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. Fair values of financial instrument asset and liabilities are determined using the fair value hierarchy that categorises the inputs to valuation techniques used to measure fair value into three levels based on the degree to which the fair value is observable.

• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities that the Institute can access at the measurement date. • Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). • Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The Institute considers that the carrying amount of trade receivables and payables is a reasonable approximation of their fair values due to the short-term nature of trade receivables and payables. Due to the short-term nature of the current receivables, their carrying value is assumed to approximate their fair value, and based on credit history it is expected that the receivables that are neither past due nor impaired will be received when due. For other assets and other liabilities the fair value approximates their carrying value. Financial assets where the carrying amount exceeds fair values have not been written down as the Institute intends to hold these assets to maturity. The carrying amounts and aggregate net fair values of financial assets and liabilities at balance date are:

2015 2014Carrying Amount

$’000

Net Fair Value $’000

Carrying Amount

$’000

Net Fair Value $’000

Financial assets Cash and deposits 5,228 5,228 2,608 2,608Receivables:Trade receivables 730 730 755 755Loans to third parties 777 777 1,779 1,779Investment and other financial assets: Term Deposits 106 106 103 103Total financial assets 6,841 6,841 5,245 5,245

Financial liabilities Payables: Supplies and services 1,464 1,464 1,632 1,632Other payables 1,254 1,254 1,555 1,555Total financial liabilities 2,718 2,718 3,187 3,187

Note 1 Receivables and payables disclosed here exclude statutory receivables and statutory payables (e.g. amounts owing to/from Victorian Government, GST input tax credit recoverable and taxes payable).



74

Note 20 Responsible persons and executive officers In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons and executive officers for the reporting period.

(i) Minister The relevant Minister is The Hon. Steve Herbert, MP, Minister for Training and Skills. Remuneration of the Minister is disclosed in the financial report of the Department of Premier and Cabinet. Other relevant interests are declared in the Register of Members interests which is completed by each member of the Parliament.

(ii) Chief executive officer (accountable officer) Ms Win Scott (appointed June 2006) Remuneration received or receivable by the chief executive officer in connection with the management of the Institute during the reporting period was in the range: Remuneration received or receivable by the chief executive officer in connection with the management of the Institute during the reporting period was in the range $200 000 - $209 999 (2014: $210 000 - $219 999). (iii) Members of the board Remuneration of the board members in connection with the management of the Institute are disclosed below. Ms Leonie Burrows Board Chair Mr Owen Russell Ministerial Nominee Ms Trudie Chant Ministerial Nominee Mr Danny Grzan Ministerial Nominee (ended 31 March 2015) (Co-opted Member 1 April to 30 November 2015) Mr Rod Markwell Board Nominee Ms Kay Martin Board Nominee Mr Geoff Dea Board Nominee Mr Terry Jennings Board Nominee Ms Amanda Phillips Ministerial Nominee (commenced 1 December 2015) Ms Lydia Senior Ministerial Nominee (commenced 1 December 2015)

2015

$’0002014

$’000Remuneration of Board members Remuneration received, or due and receivable from the Institute in connection with the management of the Institute. Includes termination payments and bonuses paid at end of contracts. 153 133

2015 No.

2014 No.

Income range The number of board members whose total remuneration from the Institute was within the specified income bands are as follows:Less than $10,000 1 1$10,000 - $19,999 8 8

$20,000 - $29,999 - 1

$30,000 - $39,999 1 -

Total number of board members 10 10

Other transactions Other related transactions and loan requiring disclosure under the Directions of the Minister for Finance have been considered and there are no matters to report. (iv) Executive officers The following persons also had authority and responsibility for planning, directing and controlling the activities of Institute during the financial year: Mr Frank Piscioneri Mr Anthony Mills Ms Jenny Grigg Ms Tracey Forbes Remuneration of executive officers The number of executive officers, excluding the chief executive officer, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits. The total annualised employee equivalent provides a measure of full time equivalent executive offices over the reporting period.

Total Remuneration Base Remuneration2015

No.2014

No. 2015

No.2014

No.Income range The number of executive officers whose total remuneration from the Institute exceeded $100,000, separately identifying base re-muneration and total remuneration, disclosed within the income band of $10,000 in a table format: $130,000 - $139,999 - 1 - 1$140,000 - $149,999 4 3 4 3Total number of executive officers 4 4 4 4Total annualised employee equivalent (AEE) 4 4 4 4Total amount of remuneration ($’000) 589 602 544 568

Other transactions Other related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been considered and there are no matters to report.

Note 21 Related parties Key management personnel Related parties disclosures are set out in Note 20 (Responsible persons and executive officers). Note 22 Controlled entities The consolidated financial statements incorporate the assets, liabilities and results of the following controlled entities in accordance with the accounting policy described in Note 1.04:

22 Controlled entitiesCountry of

incorporation Class of Shares

Equity holding 2015

%2014

%TAFE Kids IncorporatedTAFE Kids Incorporated provides community child care services. The Association is controlled by Sunraysia Insitute of TAFE. Australia N/A 100% 100%

76

Note 23 Remuneration of auditors

23 Remuneration of auditors

Consolidated Institute2015

$’0002014

$’000 2015 $’000

2014 $’000

Remuneration of Victorian Auditor General’s Office for: Audit of the financial statements 31 29 27 27Total remuneration of Victoria Auditor General’s Office 31 29 27 27Remuneration of other auditors Remuneration for continuous auditors 87 112 87 66Total remuneration of other auditors 87 112 87 66Total Remuneration of auditors 118 141 114 93

Note 25 Economic dependency Department of Education and Training The Sunraysia Institute of TAFE is dependent on the financial support of the Department of Education and Training for a significant volume of revenue to support General Profile Entitlements and Apprentice/Traineeship Entitlements. Sunraysia Institute of TAFE is a body corporate established by the Education and Training reform Act 2006. Under the Act and the VET Funding Contract the Department of Education and Training provides payments to the Institute (Board). The funds are provided to assist the Institute to maintain assets and infrastucture and provide ancillary services in order to support delivery of training services. Sunraysia Institute of TAFE is significantly dependent on the continued financial support of the State Government and in particular, the Department of Education and Training. The Department of Education and Training has provided Sunraysia Institute of TAFE with a credit facility of up to $5million, only to be drawn upon if required, and repayable in full by 30 June 2018 to address the concerns in relation to liquidity and ongoing operational costs. Please refer Note 1 for further disclosure.

Note 26 Institute details Institute details The principal place of business is: Sunraysia Institute of TAFE 453 Benetook Avenue, Mildura, Victoria 3500 With a campus also located at: 64 Sea Lake Swan Hill Road, Swan Hill, Victoria 3585 160 Bromley Road, Robinvale, Victoria 3549 46 Oke Street, Ouyen, Victoria 3490

Note 24 Subsequent eventsNo matters or circumstances have arisen since the end of the reporting period which significantly affected or may significantly affect the operations of the Institute, the results of those operations, or the state of affairs of the Institute in future financial years.

SuniTAFE ... Start here, go far!Requests for further information can be directed to:Sunraysia Institute of TAFE Office of the CEOPO Box 1904Mildura VIC 3502Ph: 03 5022 3707Email: [email protected]

Additional copies can be obtained from:Sunraysia Institute of TAFE PO Box 1904Mildura VIC 3502Ph: 03 5022 3792Email: [email protected] This Annual Report is available online at www.sunitafe.edu.au

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