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ANNUAL REPORT 2016-17 | 1
ANNUAL REPORT2016-2017
8 September 2017
The Honourable Yvette D’Ath MP
Attorney-General and Minister for Justice and Minister for Training and Skills
GPO Box 149
Brisbane Qld 4001
Dear Minister,
I am pleased to present the Annual Report 2016-2017 and financial statements for TAFE Queensland.
I certify that this Annual Report complies with:
• the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009; and
• the detailed requirements set out in the Annual report requirements for Queensland Government agencies.
A checklist outlining the annual reporting requirements can be accessed at www.tafeqld.edu.au
Yours sincerely,
Annabel Dolphin
Board Chair
TAFE Queensland
Introduction and review 4
Our organisation 6
Our vision, values and key priorities 7
Key results 2016-17 8
Financial performance 9
Delivering for Queensland 10
Stronger within 12
Ahead of the curve 14
A focus on growth 16
Governance 18
CONTENTS
Organisational structure 19
Board business in 2016-17 20
Performance measures 21
Board Members 22
Committees 24
Other reporting requirements 26
Financial statements 2016-17 28
Management Certificate 60
Independent Auditor’s Report 61
Glossary of terms 64
The TAFE Queensland Annual Report 2016-17 is available from:
TAFE Queensland
Level 9, 133 Mary Street, Brisbane QLD 4000
PO Box 16100, City East Qld 4001
Phone: +61 7 3514 3600
or online at www.tafeqld.edu.au
Information on consultancies and overseas travel can be
accessed through the Queensland Government Open Data
website (www.qld.gov.au/data) or at www.tafeqld.edu.au
TAFE Queensland is committed to providing accessible services
to Queenslanders from all culturally and linguistically diverse
backgrounds. If you have any difficulty in understanding the
annual report please call TAFE Queensland on (07) 3514 3600
and we will arrange an interpreter to effectively communicate the
report to you.
© TAFE Queensland 2017
This annual report is licensed by TAFE Queensland under a Creative Commons Attribution (CC BY) 4.0 Australia licence.
CC BY Licence Summary Statement:
In essence, you are free to copy, communicate and adapt this annual report, as long as you attribute the work to TAFE Queensland.
To view a copy of this licence, visit www.creativecommons.org/licenses/by/4.0/au/deed.en
Attribution
Content from this annual report should be attributed as:
TAFE Queensland Annual Report 2016-17
ISSN 1322-5154 (Print) ISSN 2205-4677 (Online)
4 | tafeqld.edu.au
TAFE Queensland has
continued to operate
successfully during 2016-
17 within a complex and
changing environment
shaped by funding, policy
and program changes from
State and Commonwealth
Governments.
During this ongoing period of change and reform to the broader tertiary education and training sector, TAFE Queensland has been actively advocating for quality education and training and improving equity in funding for the Vocational Education and Training (VET) sector to improve choice and quality outcomes for all students.
We have maintained our commitment
to being a commercially focussed
and community minded provider.
This Annual Report demonstrates
some great achievements against our
strategic priorities and outlines a strong
performance for TAFE Queensland in
2016-17 including a positive operating
position for the fourth consecutive year.
In early 2017, the new TAFE Queensland
Board reaffirmed the direction of our
Strategic Plan which focusses on
achieving growth in our key markets,
complemented by a commitment to
efficiency and delivering a consistent
customer experience across all areas of
our business.
Across the state, we have delivered
customised training for large employers
including Queensland Rail and a number
of major regional hospitals and we have
continued hundreds of local partnerships
with the small business sector that drives
the Queensland economy.
Our students and employer clients
continue to experience strong satisfaction
levels at 89.6% and 92.8% respectively
- an increase from 91.4% in the previous
reporting period.
The new VET Student Loans (VSL)
program that was implemented
from 1 January 2017 (replacing the
VET FEE-HELP scheme (VFH)) has
significantly impacted the VET sector
resulting in the exit of a number of large
competitor providers from the sector.
This has presented both challenges and
opportunities for TAFE Queensland as
the broader sector now works to rebuild
confidence in VET as a study choice.
The 2017-18 Commonwealth Budget
indicated a reduction of circa $50 million
in VET investment in Queensland (by the
Australian Government from 2016-17
investment levels) and raises ambiguity
about inter-governmental funding
arrangements for National Partnership
Agreement funding with the introduction
of the Skilling Australia Fund. Details of
how the fund will work and how providers
can access training funds is yet to be
announced, but TAFE Queensland is well
placed to deliver areas of focus for the
new funding, including to apprentices
in high priority industries in regional and
remote areas.
INTRODUCTION AND REVIEW
ANNUAL REPORT 2016-17 | 5
In addition, the Higher Education Reform
Package has the potential to impact the
VET sector as a result of the proposal to
extend demand driven funding to Public
University sub-bachelor qualifications.
However, against a backdrop of
apprenticeship market decline, nationally,
TAFE Queensland has regained market
share as more employers look to TAFE
Queensland to provide stability and
quality training outcomes. Our work
behind-the-scenes to streamline our
apprenticeship processes is supporting
this growth and we eagerly await the
details of the Australian Government’s
Skilling Australians Fund which promises
to provide much needed support for
young workers and our priority industries.
TAFE Queensland is working closely
with Gold Coast 2018 Commonwealth
Games Corporation (GOLDOC) to design
the bespoke training programs that will
be delivered to the 15,000 volunteers of
the Gold Coast 2018 Commonwealth
Games. Analysis of the training needs for
up to 200 specialist roles and 30 different
competition and non-competition venues
has commenced and TAFE Queensland
has already begun delivering training to
250 GOLDOC staff that will be involved in
training the volunteers.
TAFE Queensland’s priorities for 2017-
18 will focus on delivering efficiencies
and process improvements to ensure
that our business is sustainable and
our offerings represent value-for-
money to Queenslanders. Delivering
efficiencies is now critical in ensuring
improvements in the affordability of
our training services in a price-driven
marketplace and our capacity to continue
to invest in the capability and systems
necessary to support a high quality VET
offering. This work will complement the
transition to a single Registered Training
Organisation (RTO) and our ongoing
investment in developing contemporary
product offerings that provide increased
consistency across our state.
TAFE Queensland will continue to meet
and exceed stakeholder expectations
and deliver solutions and benefits for our
customers through our focus on industry,
employers and students. Our program
of continuous improvement will ensure
our sustainability through an enterprise
approach to the way we do business
and embracing innovation in our products
and services.
Annabel Dolphin
Board Chair
TAFE Queensland
Jodi Schmidt
Chief Executive Officer
TAFE Queensland
Bamaga
Great Barrier ReefInternational Marine College
Thursday Island
Normanton
Cloncurry
MareebaAtherton
Innisfail
Ingham
Bowen
Pimlico
Connonvale
Charleville Roma Kingaroy
BundambaChinchilla
Warwick
Toowoomba
Springfield / Inala
Dalby
Bundaberg
NurunderiGympie
Hervey BayMaryborough
Charters Towers
Townsville Trade Training Centre
Mount IsaBurderkin
Maroochydore
Mooloolaba
Brisbane
AshmoreCoomeraSouthportCoolangatta
Nambour
Palm Island
Caboolture
Redcliffe
Grovely
LoganleaBrowns Plains
Acacia Ridge
Bowen HillsSouth Bank
Yeerongpilly
Bracken RidgeEagle Farm
Alexandra Hills
Mount Gravatt
6 | tafeqld.edu.au
TAFE Queensland’s physical footprint covers an area from Thursday
Island in the North, Mount Isa in the West, Coolangatta in the South
and Hervey Bay in the East. Our six RTOs are:
• TAFE Queensland Brisbane
• TAFE Queensland SkillsTech
• TAFE Queensland Gold Coast
TAFE Queensland contributes to the
Queensland Government’s objectives for
the community by stimulating workforce
participation and economic growth.
Through quality training designed to
increase the knowledge and skills of
Queenslanders, TAFE Queensland
delivers training solutions that meet the
needs of students, communities, industry
and local economies. The government’s
objectives can be accessed at
www.premiers.qld.gov.au/publications/
categories/plans/governments-objectives-
for-thecommunity.aspx
Established as a statutory body under
the TAFE Queensland Act 2013 (TQ
Act), TAFE Queensland is a commercially
focused and community-minded
organisation servicing the length and
breadth of the state.
Due to our size, as Queensland’s largest
public provider, we are able to respond
to training market demand across a
wide range of industry training groups
(ITGs). TAFE Queensland offers practical,
industry-relevant training across 23
ITGs. We offer over 500 programs from
foundation skills and entry level workforce
qualifications to higher education
degrees, providing people with training
options at every stage of their career
and employers with skilling solutions that
respond to complex workforce needs.
Our network across over 50 locations
supports the delivery of training to
approximately 120,000 students
(including 7,390 international students
from over 110 countries) through a variety
of modes; be it face-to-face, online or in
the workplace.
OUR ORGANISATION
Our commitment to our students, industry and the VET sector is evident across our organisation.
• TAFE Queensland East Coast
• TAFE Queensland South West
• TAFE Queensland North
OUR VISION,VALUES AND KEY PRIORITIES
ANNUAL REPORT 2016-17 | 7
Moving to one RTOTAFE Queensland has commenced
the process of consolidating our
six RTOs into a single RTO from 1
July 2017. This work, along with the
establishment of a single website and
new Student Management System
(SMS) is critical to TAFE Queensland’s
positioning as a single brand within
the market to ensure that the
maximum efficiency and effectiveness
of the organisation’s size, scale and
reach can be realised over the next
phase of market evolution.
While the transition is largely an
administrative change, operating
as one RTO will leverage TAFE
Queensland’s scale and expertise,
make it easier to do business with
us and enable students to move
between TAFE Queensland regions
based on their needs.
GREAT RECOGNITION: TAFE QUEENSLAND • 2016 Large Training Provider of the Year – Queensland Training Awards
• Finalist – 2016 Australian Training Awards
• Registered Training Organisation of the Year Award – TAFE Queensland
SkillsTech, Construction Skills Queensland Excellence Awards
• Service Excellence Award – TAFE Queensland North, Employment, Education
and Training Sector, 2016 EMO Trans Northern Outback Business Awards
• Nominated for Queensland Reconciliation Awards
• 2016 finalist at the Australia-China Business Awards (ACBA) in the category
of the Business Excellence Award for Education and Training
• 2017 finalist at the Australia-China Business Awards (ACBA) in the category
of the Business Excellence Award for Consumer Services
• EventsAIR Innovation Award – TAFE Queensland Brisbane, for Rising Star
Institution of the Year
• Supplier of the Year 2016 – TAFE Queensland South West, Queensland Bus
Industry Council
OUR VISIONTAFE Queensland’s vision is to be the
market leader of high quality education
and training in Queensland and target
markets beyond.
OUR MISSIONThough our form has changed many
times throughout our proud history,
our mission has remained true:
To be an efficient, effective, sustainable,
responsive organisation that develops
individual’s skills and employment
opportunities by meeting employer,
industry and community needs.
OUR VALUES
Innovation
Bringing new ideas to life
Accountability
Delivering on our promises to
our customers and each other
Commerciality
Building a sustainable
organisation
Teamwork
Working together as
one TAFE Queensland
By holding true to these values and
keeping customers at the centre of
everything we do, we will continue to
strengthen TAFE Queensland’s reputation
as a market leader in high quality
education and training.
The following pages set out some of our
achievements against the objectives and
key performance indicators of each of
the key priorities of the Strategic Plan,
namely:
• Sharpen our industry, employer
and student focus
• Build our capability and
outcomes focus
• Innovate our products and services
• Embed sustainability
8 | tafeqld.edu.au
GREAT TRAINING
GREAT BRAND
GREAT STAFFCompetency
completion rate
89.78% 87%
Student satisfaction
93%
Employer satisfaction
Graduates employed or in further study
86%
Revenue from non-government sources
Queensland employers agree
TAFE Queensland
is a solutions provider
60%
Total staff (FTE)
4072Staff satisfaction
3.96(scale of 1 to 5)
122,034 41,600
36.21 million hours of training delivered
KEY RESULTS 2016-17
unique studentsCert 1 +
qualifications awarded
GREAT PERFORMANCE
60.5%
As per the financial
statements, TAFE
Queensland recorded an
operating profit of $20.0m
for 2016-17. This compares
to a surplus of $12.0m in
2015-16.
The 2016-17 operating result includes
a $7.0m contribution from Department
of Education and Training (DET) towards
the fit-out of the Sunshine Coast
Health Institute (SCHI) on behalf of
TAFE Queensland, as well as $1.8m of
expenses relating to the fit-out. TAFE
Queensland’s underlying operating profit
excluding these items was $14.2m.
TAFE Queensland has managed its
resources effectively in a difficult operating
environment, continuing to generate an
operating surplus while maintaining a
strong balance sheet underpinned by
considerable holdings of liquid assets.
TAFE Queensland continues to hold no
managed in line with the level of training
demand from our customers. Overall
costs increased by $33.7m (5.3%) which
included an average wage increase
of 2.5%, costs associated with third
party delivery arrangements, additional
maintenance expenditure and increase in
amortisation expense.
Employee Expenses
Supplies & Services
Depreciation & Amortisation
Other Expenses
Expenditure by
management
reporting
classification
Domestic Training
International Training
Government Subsidised Training
Commonwealth Training Programs
Grants & Contributions
Other Revenue
Income by
management
reporting
classification
FINANCIAL PERFORMANCE
ANNUAL REPORT 2016-17 | 9
Highlights from the 2016-17 year are provided below. Further details are contained
in the financial statements.
Operating performance:
financial highlights
2015-16
$’000
2016-17
$’000
Income 645,433 687,161
Expenses 633,474 667,201
Operating Surplus 11,959 19,960
Cash and cash equivalents 231,196 216,185
Total Assets 366,825 396,003
Total Equity 268,888 290,207
debt with all initiatives funded through
operating profits and working capital.
TAFE Queensland’s strong financial
position provides capacity to continue
making strategic investments within a
highly competitive and resource intensive
VET sector.
Revenues from training activities
increased by $23.6m (6%) in 2016-17,
with the majority of this increase arising
through delivery under Commonwealth
contracts and Queensland Government
subsidised training programs.
Grants and contributions (other than
Queensland Government subsidies)
increased by $19.5m during the year,
mainly due to grants and contributions
from DET including one-off additional
maintenance funding and contribution
towards the SCHI fit-out, and grants
under the Rescuing TAFE and Back to
Work programs.
TAFE Queensland has continued our
prudent management of expenditure,
ensuring operating expenses were
During 2016-17, we have continued to consult and collaborate with industry, employers and students through stakeholder engagement and business development programs to identify local issues and develop solutions through our product and service delivery.
DELIVERING FOR QUEENSLAND
Strategic priority Sharpen our industry, employer and student focus
10 | tafeqld.edu.au
The Gold Coast 2018 Commonwealth
Games (GC2018) continued to be a major
priority for TAFE Queensland throughout
the year as a tier one sponsor of the games.
Fifteen Indigenous Small and Medium
Enterprises participated in TAFE
Queensland’s Supply Chain program,
developed in collaboration with the Office
of Commonwealth Games, Department
of Aboriginal and Torres Strait Islander
Partnerships and Grocon, to meet the
needs of tendering to Grocon and other
GC2018 contractors.
The program has been so successful it
has been nominated for the Queensland
Reconciliation Awards.
Registrations to become one of the
15,000 volunteers at GC2018 far
exceeded the expectation of Games’
organisers. The successful internal
volunteer recruitment drive attracted over
1,000 TAFE Queensland staff and students.
TAFE Queensland is the official training
partner for the GC2018 and will be
delivering bespoke training to the
15,000 successful volunteer applicants.
Training will cover up to 200 different
roles including venue-specific training
and orientation. Training received by
volunteers will include skills they can
apply outside of GC2018.
TAFE Queensland was represented by the
Board Chair, Annabel Dolphin and CEO,
Jodi Schmidt at the Queen’s Baton Relay
Official Launch at Buckingham Palace,
London in March 2017.
Strengthening partnershipsIndustry engagement remained a focus
for TAFE Queensland across 2016-17,
strengthening partnerships with large
enterprises such as Aurizon, Volvo
Group, Grand Central Shopping Centre,
Queensland Rail, Ramsay Health, Gold
Coast Hospital and Health Service and
Star Entertainment.
TAFE Queensland has become the
recognised provider of choice for
non-clinical training within Logan and
Beaudesert Hospitals through the
hospitals’ wellness program Healthy,
Wealthy and Wise.
Following the successful training model at
Logan, TAFE Queensland has extended
this program to other hospital’s including
the Princess Alexandra and Queen
Elizabeth II Jubilee Hospitals.
TAFE Queensland has further expanded
its existing relationship with oil and gas
producer SANTOS to train material
controller staff in South Australia and
Western and Central Queensland.
Training will cover accredited skill sets
and qualifications.
TAFE Queensland, Energex and BUSY
at Work have partnered to deliver the
Indigenous Bright Sparks Program.
The 16 week pre-apprenticeship program
provides Aboriginal and Torres Strait
Islander students the opportunity to
learn the basic skills and competencies
that will help them to obtain an electrical
apprenticeship.
The Queensland Hotel and Hospitality
School, a partnership between TAFE
Queensland and The Star Entertainment
Group celebrated its first year of
operation, and the measured success it
has achieved in training over 50 skilled
hospitality workers whilst fast tracking
90% of them into employment.
Following our successful arrangement
with Australian Industry Trade College
(AITC) at its Redlands Campus, TAFE
Queensland is now also the preferred
training provider of TAFE at School and
User Choice apprentice and trainee
training at the AITC Gold Coast campus.
Advancing QueenslandOn 4 May 2017, an agreement between
the Department of Science, Information
Technology and Innovation (DSITI) and
TAFE Queensland was signed which will
see an additional $300,000 investment in
TAFE Queensland’s Scholarship program
across Science, Technology, Engineering
and Maths (STEM) qualifications. This
will also include the opportunity for top-
up scholarships for TAFE Queensland
students transitioning to university.
Healthy relationshipsTAFE Queensland, in partnership with the
Young Women’s Christian Association
(YWCA) hosted members of the Domestic
and Family Violence Implementation
Council, including the Honourable Dame
Quentin Bryce, AD CVO for an informal
presentation of the Healthy Relationships
eLearning Program. A joint initiative
between TAFE Queensland and YWCA
Queensland, the program focusses on
preventing domestic violence by engaging
young adults through positive messaging
about healthy relationships.
GC2018
ANNUAL REPORT 2016-17 | 11
Project BooyahOff the back of its successes over the
past five years, Project Booyah (a joint
initiative with the Queensland Police
Service and Police Citizens Youth Club),
received a boost of $7.65m in State
Government funding over the next
five years.
This initiative will provide additional
programs that will assist at-risk youth
in Queensland into opportunities for
education and employment.
Skilling Queenslanders
Over 1,400 disadvantaged students
across the state enhanced their
knowledge and skills through the Skilling
Queenslanders for Work initiative.
Working in partnership with local
community organisations and not-for-
profits, TAFE Queensland delivered 52
training programs across a range of
industries.
TAFE Queensland responded to over
1,416 job seeker referrals as part
of the State Government’s Back to
Work Regional Employment Package.
Based in Hervey Bay, Dalby, Mt Isa,
Cairns, Townsville, Rockhampton
and Mackay, Jobseeker Officers are
providing career and training advice
and working with government and
employment agencies and employers
to build regional employment solutions
and match jobseekers with employment
opportunities.
Research partnership Prepared in partnership with the
Commonwealth Scientific and Industrial
Research Organisation (CSIRO), TAFE
Queensland launched The VET Era:
Equipping Australia’s workforce for the
future digital economy - examining the
skilling demands of the future Australian
workforce and the evolution that the
Australian VET sector must undertake to
meet these demands.
Following the high profile recognition
of the above work, TAFE Queensland
in conjunction with Jobs Queensland
has developed a regional workforce
development plan for the Fraser Coast
Regional Council Area, focussed on
examining innovative and emerging
industries and how these sectors can
be leveraged to support the transition of
workers from traditional industries.
In December 2016, TAFE Queensland
published ARIES (Applied Research,
Innovation and Entrepreneurship
Services) Case Studies 2016, featuring 20
examples of our educators working with
employers and within communities. These
case studies demonstrate collaborations
between our educators, learners and
employers within local communities
across Queensland.
Critical Participatory Action Research A key initiative of the TAFE Queensland
Education and Training Strategy is to
embed the scholarship of learning and
teaching and use action and applied
research to inform practice. To realise
this objective, a number of Critical
Participatory Action Research (CPAR)
projects were undertaken, encouraging
educators to reflect on and improve
teaching practice.
Greenlight Film Festival TAFE Queensland Brisbane produced
it’s very own student-targeted film
festival open to creative film and
television production students across
high schools and tertiary institutions as
well as recent graduates. The festival
created opportunities for further industry
and customer relationships for TAFE
Queensland.
Strategic investment in learning resourcesTAFE Queensland has invested heavily in
the development of high quality learning
resources over the past two years. Using
key stakeholder groups, including industry
representatives, a set of key design
principles have been developed to ensure
our learning and teaching resources are
cohesive, consistent and responsive to
the needs of target student cohorts.
STRONGER WITHIN
Strategic priority Build our capability and outcomes focus
12 | tafeqld.edu.au
Working together as one TAFE Queensland our staff have empowered one another to lead, innovate and drive quality throughout 2016-17.
Our talented educators and services staff
strive to deliver quality training and an
exceptional student experience; be it on
campus, online or in the workplace.
Excellence in learning and teaching is at
the heart of TAFE Queensland’s culture.
An organisation-wide focus on innovation
and quality helps attract and retain the
state’s most experienced vocational
teaching workforce who are recognised
by both students and employers as
experts in their fields. Our educators and
the excellence they bring to teaching,
learning and assessment is what sets us
apart from our competitors.
In line with the Strategic Plan, TAFE
Queensland continued its focus
on enhancing workforce capability
with a program of work to unify the
approach to professional learning,
capability development and knowledge
management.
Connected LeadersTo further support strategic execution,
senior leaders across TAFE Queensland
have participated in a series of leadership
workshops, including conversations
about effective leadership, which have
provided the foundations for strong
strategy execution.
Moving forward, the leadership
workshops will have a focus on change
management, with the introduction of
a tailored TAFE Queensland change
management toolkit.
Innovation HubFlowing from the success of last year, the
2017 Innovation Hub brought together
staff from across the state to focus on
Design Thinking methodology. The day
fostered a collaborative spirit as teams
worked together to come up with ideas
about how we can create a culture of
‘solutions’ across TAFE Queensland.
Regional innovation campaigns continue
to run regularly, with a network of
Innovation Officers sharing ideas and
successes across TAFE Queensland.
HECS-free scholarships Higher Education Contribution Scheme
(HECS)-free scholarships have been
available for eligible TAFE Queensland
staff under an agreement with the
University of Tasmania (UTAS) since
2013, and both the number of courses
available to staff and the number of
participants have been growing steadily.
We now have six courses in education
on offer (two undergraduate and four
post graduate qualifications). To date
282 TAFE Queensland staff have active
scholarships.
The Applied Learning Studies Reference
Group met bi-annually to review course
standards, the learner experience and
consider other opportunities. TAFE
Queensland is currently working with
UTAS to create or identify existing
professional learning units tailored to the
needs of our higher education academics.
LinkedIn ‘Ed Talk’ group This year also saw the launch of a ‘TAFE
Queensland only’ LinkedIn group, created
for current TAFE Queensland educators,
to provide the opportunity to contribute
knowledge and expertise, share success
stories, network and collaborate with
colleagues. An additional means of state-
wide communication, ‘Ed Talk’ aims to
promote, enable and provide a model of
social learning for educators.
Ed chats Fortnightly online meetings ‘chats’
continue to occur with educational
leaders to keep abreast of professional
learning calendar events and activity
including registration, attendance
at webinars/workshops, resource
development updates, consultation and
feedback. These meetings reinforce a
consistent approach to professional
learning across TAFE Queensland, to
enable and support the introduction of
new approaches to building capability
and meeting the needs of educators.
Educator Voice ForumsSixty-one applicants from different
disciplines and educational roles have
joined TAFE Queensland’s Educator Voice
Forum. Established to provide TAFE
Queensland educators with a forum to
provide feedback on strategic educational
projects, members are also encouraged
to raise, discuss and share solutions
to a number of work related issues.
Additionally, members were invited to
engage in a review of the new Inclusive
Practice training module and other
learning system enhancement initiatives.
Great recognition–TAFE Queensland employeesJudy Hoskins, lead teacher in
Indigenous Primary Health Care,
VET Teacher or Trainer Award,
Queensland Training Awards.
Tara Hastings, Director of Legal
Services and General Counsel,
Academia, Training and Education
Lawyer of the Year, Lawyers
Weekly Corporate Counsel
Awards 2017.
Mount Isa staff, Service Excellence
Award Employment, Education
and Training Sector, 2016 EMO
Trans Northern Outback Business
Awards.
TAFE Queensland SkillsTech,
Registered Training Organisation of
the Year award, Construction Skills
Queensland Excellence Awards.
Phil Vivian, teacher, Construction
Trainer of the Year Award, Major
Training Group.
Carl Balke, refrigeration and air
conditioning teacher has been
selected as part of a team of 24
experts that will train the 2017
Skills Squad in preparation for
the international WorldSkills
Competition in Abu Dhabi in 2017.
Paul Marshall, refrigeration and
air-conditioning teacher, was
awarded a Queensland Overseas
Foundation Global Connections
Bursary to undertake a study tour
of Vietnam with a focus on the
development of online teaching
and assessment resources.
TAFE Queensland
workforce
Total staff (FTE) 4072.37
Permanent staff 2503.5
Temporary staff 1176.23
Casual staff 215.74
Contract staff 176.9
Permanent
separation rate 6.43%
ANNUAL REPORT 2016-17 | 13
Staff training catalogueDuring 2016, staff were provided with
the ability to enrol in a steadily increasing
number of professional learning training
modules via the ‘staff training catalogue’
www.tafeqldtc.brightspace.com/.
This initiative allows educators to self-
enrol into online courses, review content
and webinar recordings and complete
quizzes and activities in their own time.
Through this approach, significant
progress has been made towards
building educator capability in validation,
assessment, quality and compliance.
Learning and Teaching Excellence ConferenceThe inaugural Learning and Teaching
Excellence Conference was held at the
Brisbane Convention and Exhibition
Centre in January 2017 and was attended
by 569 TAFE Queensland educators.
Topics, included tackling tough student
behaviour, action learning, online learning,
gen Y/Z learners and pedagogy.
Additionally, two masterclasses were
offered on 19 January 2017 aimed
at higher education and improving
assessment techniques.
World Teachers’ DayOn 28 October, TAFE Queensland
celebrated World Teachers’ Day in
conjunction with OctoberVET, an
Australian Vocational Education and
Training Research Association (AVETRA)
initiative focussed on research in VET.
TAFE Queensland’s theme in 2016 was
‘the value of applied research in VET’
and the day provided CPAR participants
with the opportunity to network, share
research experiences and present the
outcomes of their applied research
projects to a wider audience.
TAFE Queensland Staff AwardsThe third state-wide TAFE
Queensland Staff Awards were held
in 2017 to recognise the outstanding
achievement and high performance of
our staff across ten award categories
that reflect our corporate values and
focus on safety and service quality.
After six regional finals, the awards
culminated in a state final event
on 26 May 2017.
2017 TAFE Queensland Staff Awards Neil Wood, Great Achiever Award and
Educator of the Year
Laura Thomas, Great Achiever Award
and Employee of the Year
Jo-Liz Prosser, Educational Leader
Award
Les Johnson, Lifetime Achievement
Award
Neil Wattam, Industry Collaboration
Award
Carly Forrest and Naomi Richards,
Great Business Award
Susan Goller, Great Service Award
Tabitha Bleys, Great Safety Award
Leading Vocational Teacher Peer
Review Panel, Great Team Award
Karen Jones and Joyce Cheng,
Board Chair Great Ideas Award
Combining these events each year
ensures the focus is firmly on our
educators and the value of their various
contributions, the value of applied
research projects and scholarly activity
and the importance of educational
excellence to TAFE Queensland.
AHEAD OF THE CURVE
Strategic priority Deliver exceptional learning experiences
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Our organisational focus on delivering great experiences to students and employers has positioned us as Queensland’s premier provider of VET. Our people have achieved this outcome in the face of significant change in our market and in our organisation.
TAFE Queensland’s success at the recent
Queensland Training Awards shows that
it continues to be the market leader of
high quality education and training in
Queensland and target markets beyond.
TAFE Queensland has invested in a
number of initiatives to expand and
improve the overall student experience as
well as increase access and participation
in education and training.
Scholarships programSince the launch of the TAFE Queensland
Scholarships program in 2015, more than
130 scholarships have been awarded
state-wide, with the program now
positioned as Australia’s leading vocational
education scholarships initiative.
The $5,000 scholarships provide students
with financial assistance to complete a
TAFE Queensland qualification across a
range of industry areas.
Success with Rescuing TAFETAFE Queensland continues to deliver
a range of training options under the
Rescuing TAFE program. Over 10,000
students have enrolled in a Rescuing TAFE
supported qualification this year, enabling
them to access funding to offset the cost
of training and support services that they
would otherwise not be eligible for.
Retaining sustainable traditionsIn partnership with Clermont Aboriginal
Community Development Fund, the
Wangan and Jagalingou People, Glencore
and the Department of Environment and
Heritage Protection, TAFE Queensland
is delivering land conservation and
management skills, including but not
limited to: maintaining cultural places,
environmentally sustainable work
practices, recording information about
country and first aid.
Preparing today’s students for tomorrow’s careersFollowing a successful pilot last year,
TAFE Queensland’s #DiscoverMyFuture
Program has now been rolled out to Year
9 students state-wide.
Additionally, DET has endorsed TAFE
Queensland’s Discover My Career
Program, enabling TAFE Queensland
to engage over 20 private and public
secondary schools in the program
targeting Year 10 students, prior to the
development of their Senior Educational
Training (SET) plan, to build awareness of
career options and assist them to select
appropriate subjects that will support their
career ambitions.
The above programs were developed
in response to a growing recognition in
high schools and universities that there
is not enough information and advice
for students prior to Year 11 to make
informed decisions about their future
education investment and
career pathways.
Continued growth in higher education pathwaysHistory was made this year when
61 students graduated from TAFE
Queensland with a University of Canberra
(UC) bachelor degree in a range of
different courses. The cohort became
the first students to achieve a bachelor
degree through TAFE Queensland’s
innovative partnerships with the University
of Canberra, marking a very special
milestone for this partnership.
TAFE Queensland also welcomed
approximately 1,100 continuing and
commencing students to higher
education courses this year. As part of
our partnership with UC four additional
bachelor degrees commenced in February
2017, bringing our higher education
offering to 17 programs.
Reintegration programs Continuing our work with Queensland
Corrective Services as the preferred
training provider, TAFE Queensland has
established a delivery model with the
Borallon Training and Correctional Centre
(BTCC) aimed to support BTCC’s vision
to be the leading Australian correctional
centre for the rehabilitation of young male
prisoners.
TAFE Queensland delivers skills and
qualifications to participants to enable
them to effectively transition back into
community and reduce the likelihood of
re-offending.
Get Set for WorkThe first round of projects as part of the
Get Set for Work program commenced in
October 2016 across a number of TAFE
Queensland regions.
In partnership with the charitable
foundation yourtown, these programs
aim to provide young people aged
15-19 years with nationally recognised
training, that will enable them to effectively
transition to employment and/or further
education and training.
Industry’s provider of choiceTAFE Queensland successfully
implemented a number of apprenticeship
and traineeship management strategies
to streamline processes across all regions
including; Strategic Relationship Strategy,
Apprentice Guide, User Choice Quality
Framework, standard TAFE Queensland
Induction System (eSign), future dated
enrolling and consistent monthly reporting.
This has supported an increase in market
share of apprentice commencements,
from 35.85% to 41.03% during the
financial year.
Unique Students
by AQF Level
Year 12 (equivalent)
Statement of Attainment
Other Non-award courses
Certificate I
Certificate II
Certificate III (or Trade Certificate)
Certificate IV (or Advanced Certificate)
Diploma
Higher education programs
TAFE Queensland Brisbane
TAFE Queensland East Coast
TAFE Queensland Gold Coast
TAFE Queensland North
TAFE Queensland SkillsTech
TAFE Queensland South West
Unique Students
by TAFE
Queensland
Region
0
3000
6000
9000
12000
15000
Unique Students by top 10 ITGs
ANNUAL REPORT 2016-17 | 15
2016 WorldSkills Australia national competitionTAFE Queensland students took out 14 medals including six gold, four silver
and four bronze at the 2016 WorldSkills Australia National Competition held in
Melbourne from 6 – 8 October. The medal winners were part of the Queensland
team which included more than 70 TAFE Queensland students.
Six gold medals were won by TAFE Queensland and competitors now have
a chance to be selected for the Australian team that will compete in the 44th
WorldSkills Competition to be held in Abu Dhabi in October 2017.
TAFE Queensland WorldSkills medallists are:
Automotive Services
• Auto Electrical – Silver
Connor McCue
TAFE Queensland SkillsTech
• Auto Electrical – Bronze
Luke Budd
TAFE Queensland Gold Coast
• Automotive Mechanics – Bronze
Robert Jory
TAFE Queensland SkillsTech
Building and construction
• Electrical Installation – Gold
Nicholas Lennox
TAFE Queensland East Coast
• Electrical Installation – Silver
Anthony Mesiano
TAFE Queensland Gold Coast
• Refrigeration – Gold
Nathan McHugh
TAFE Queensland SkillsTech
• Refrigeration – Silver
Hayden McColl
TAFE Queensland SkillsTech
Client services
• Fashion Technology – Gold
Teegan DuToit
TAFE Queensland Brisbane
Computing and business
• Business Services – Gold
Ben Nedwich
TAFE Queensland East Coast
• Hospitality services Cookery – Bronze
Sallie Brittain
TAFE Queensland South West
• Restaurant Service – Gold
Emilia Montague
TAFE Queensland Brisbane
Metals and engineering
• Sheetmetal Work – Bronze
Tom Gee
TAFE Queensland SkillsTech
Vocational Education and Training in
Schools (VETiS)
• VETiS Electrotechnology – Silver
Jordan Rigby
TAFE Queensland SkillsTech
• VETiS Hairdressing – Gold
Stephanie Raux
TAFE Queensland South West
Our student profileOur unique structure and state-wide delivery model demonstrates our commitment
to supporting a diverse student profile including school leavers, up-skillers, career
changers and job seekers from a wide range of socioeconomic and cultural
backgrounds in regional and remote locations.
This broad customer profile is representative of the community and demonstrates our
commitment to delivering training to students at any stage of their career journey to
meet ever changing skills needs.
A FOCUS ON GROWTH
Strategic priority Embed sustainability
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TAFE Queensland is providing a range of integrated services that improve our efficiency, meet customer expectations and complement the delivery of high quality education and training in Queensland and beyond.
TAFE Queensland has made significant
progress against its ambitious strategic
agenda and has continued to deliver
strong financial results despite some
significant shifts in market share.
TAFE Queensland was successful in the
latest Construction Skills Queensland
procurement round, securing new
contracts across a range of funded
pathways including short courses, skills
assessment and gap training, and higher
level skills.
Broadening our facilities TAFE Queensland is committed to
supporting Queensland communities and
industry to access the skills they need to
prosper. While our broad delivery footprint
and focus on innovation has seen us
expand our range of learning options, our
campuses are still a critical part of our
delivery network.
TAFE Queensland doubled the teaching
area at its Inala campus to meet the
increased demand for English classes for
migrants and refugees in the local area,
providing a number of additional facilities
in the $3.4m renovation.
TAFE Queensland’s hair and beauty
salons in Bundaberg and Mooloolaba
have both had a makeover, transforming
the purpose-built training facilities into
modern and functional salons. The
salons, which are fitted with state-of-the-
art equipment, provide students with the
opportunity to learn their trade and test
their skills as they would in the real world.
TAFE Queensland Gold Coast’s $26m
custom built creative campus was
open to the public in October, offering
interactive displays, demonstrations, tours
and career advice.
In Hervey Bay, the new $250,000
purpose-built Health Industry Training
Centre opened its doors to meet the
demands of the Fraser Coast’s rapidly
growing health services industry.
TAFE Queensland has become part of an
historic educational partnership, having
set up a new site at the Charters Towers
School of Distance Education. With the
school’s large number of students, the
partnership will allow TAFE Queensland
to offer students additional education
programs and continue to build on its
relationships with local high schools and
the community.
Since opening the doors at the Sunshine
Coast Health Institute in February 2017,
TAFE Queensland has enrolled over
300 students in nursing, aged care
and community services. As part of the
collaborative partnership and 25-year
unincorporated joint venture arrangement
with Sunshine Coast Hospital and
Health Service, the University of the
Sunshine Coast and a medical school,
TAFE Queensland is providing a range
of programs to develop and improve
the skills of doctors, nurses, allied
health workers, health professionals and
vocational students in Queensland.
A four year rolling investment program
was approved for $17.25m per year
to maintain and improve assets while
awaiting the outcomes of the Queensland
Government’s Strategic Training
Infrastructure Plan (STIP), currently being
considered by government.
Under the above arrangements, a number
of projects have now commenced:
• planning for a new student hub at the
Pimlico site
• an additional car park at the Coomera
campus
• a new student hub at Toowoomba
• an additional $5milion for operational
condition based maintenance (e.g.
painting, recarpeting) through the
majority of sites across the state.
AMEP and SEE successTAFE Queensland was successful in
the tender for the Adult Migrant English
Program (AMEP) and Skills for Education
and Employment (SEE). This means TAFE
Queensland will continue to be the sole
provider of AMEP and a major provider of
SEE across 39 locations in Queensland.
The new SEE contract will see TAFE
Queensland expand delivery into Ipswich,
Toowoomba, Sunshine Coast, Cairns and
throughout Far North Queensland.
These programs have the potential to
bring up to $55m into the business each
year over the next three years.
ANNUAL REPORT 2016-17 | 17
TAFE Queensland InternationalTAFE Queensland continues to
reinforce its international presence
through investment in the growth
and consolidation of our international
business.
In its effort to improve the level of service
to key stakeholders, TAFE Queensland
has been transitioning towards a single
Commonwealth Register of Institutions
and Courses for Overseas Students
(CRICOS) registration, with consequent
benefits in terms of streamlining of
processes and ease of access for
international students, agents and clients.
In 2016-17, TAFE Queensland
International was successful in securing
$65,000 in funding under the International
Education and Training Partnership fund.
This funding will be used to highlight the
capability of Queensland VET providers
in the Indian market, establishing
Queensland as a leader in offshore VET
and facilitating the delivery of training
in the resources, health and services
sectors.
TAFE Queensland was also successful
in gaining a sub-contract agreement
for 2016 with Coffey International
Development Pty Ltd for the Meat
Production, Processing and Supply Chain
Management short course program,
under the Australia Awards Indonesia
Department of Foreign Affairs and Trade
contract.
Activities from TAFE Queensland
International’s business development and
partnerships teams have resulted in a
number of key achievements, including:
• A year-on-year 16% growth in
revenue generated by offshore training
agreements in 2016-17.
• Over 250 inbound delegates as part of
study tour programs, government and
vocational school visits.
• In-country teacher training workshops
to promote and enhance their
understanding of the Australian
VET system.
• Formalised education pathways for
offshore students to study diploma to
degree pathways.
• Delivery of the International Training
and Assessment Course (ITAC) as
part of the Asia-Pacific Economic
Cooperation (APEC) Transport and
Logistics Project.
• Partnership with Dingo Software Pty
Ltd, an intelligence expert service
company specialising in predictive
maintenance, to deliver Dingo’s
predictive maintenance software to
mining clients across the world. TAFE
Queensland and Dingo successfully
delivered a joint workshop in Mexico,
which attracted over 50 mining
companies, receiving significant media
coverage in the country.
• Appointed by Broadspectrum, a multi
sector service company, to deliver
training in Manus Island to 49 local
employees to improve local capacity
through training and knowledge
transfer.
Australia-Pacific Technical College This year, the Australia-Pacific Technical
College (APTC) marked its 10th year of
delivering training that is changing lives,
not only for graduates but also for the
communities in which they live and work.
In 2016-17, APTC delivered 103
programs to 1,267 students in 29
qualifications who successfully completed
37,168 competencies.
The transformative impact of APTC
has been recognised on national and
international stages. For example, APTC’s
cookery trainer, Daniella Ah Leong-
Leota, was named as Samoa’s female
ambassador to the World Association of
Chefs’ Societies (Worldchefs).
Recognition also went to APTC graduate,
Abhinesh Chand, who was awarded the
Member of the Order of Fiji medal from
His Excellency, the President of Fiji, for
service to the community.
Further demonstrating its success, 85%
of APTC graduates were recorded as
being in employment post training -
having gone on to advance their careers,
start their own small businesses or
pursue work opportunities abroad.
Student Management System (SMS) renewalImplementing our new SMS was one of
the highest priorities for TAFE Queensland
in 2016-17.
Along with our partner, TechnologyOne,
TAFE Queensland has worked steadily
on the planned reconfiguration of our
SMS so that it will support our day-to-day
business and the student experience from
end-to-end.
ICT support renewal projectDuring the year, TAFE Queensland
successfully changed ICT support
providers from Unisys to Fujitsu.
Under the agreement, Fujitsu will provide
large-scale critical services including
service desk, end user computing,
infrastructure management, network
- LAN support and cross functional
services.
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Strengthening TAFE Queensland’s good governance practices, has allowed the organisation to drive performance, achieve our organisational goals and objectives and deliver on business improvement opportunities.
Management and oversightTAFE Queensland was established by
the TQ Act as a statutory body under the
Financial Accountability Act 2009 and the
Statutory Bodies Financial Arrangements Act 1982 on 1 July 2014. This legislation
prescribes the objectives and functions
associated with the governance of TAFE
Queensland.
Governing bodyTAFE Queensland’s governing body is
the TAFE Queensland Board. The TAFE
Queensland Board has seven members
constituted in accordance with the
TQ Act.
The previous Board term expired on 14
August 2016, but was extended to 30
November 2016. The new Board was
appointed on the 1 December 2016.
FunctionsTAFE Queensland has the following
functions under the TQ Act:
a) to provide vocational education and
training services
b) to provide further education, and
other forms of education, to support and
complement the provision of vocational
education and training services
c) to produce and sell vocational
education and training products
d) to prepare, publish, distribute or
license the use of literary or artistic
work, audio or audio-visual material,
or computer software
e) to undertake research and
development on matters relating
to its functions
f) to contribute to and actively
engage with industry on matters
relating to its functions
g) to exploit commercially TAFE
Queensland’s resources, including
any study, research or knowledge or
the practical application of any study,
research or knowledge
h) to report to the Minister for Training
and Skills on the performance of its
functions
i) to advise and make recommendations
to the Minister for Training and
Skills about matters relevant to the
performance of its functions and any
other matters referred to it by the Minister
for Training and Skills
j) any other functions given to it
under an Act.
TAFE Queensland is to perform its functions:a) in a way that is efficient, effective and
responsive to the needs of industry,
students and the general community; and
b) on a not-for-profit basis.
GOVERNANCE
Minister for Training and Skills
TAFE Queensland Board
Jodi Schmidt
Chief Executive Officer
Michael Thomas
Chief Operating Officer
Dean Sedgman
Chief Information Officer
Jenny Dodd
Chief Academic Officer
Julia Smith
Chief Human Resources Officer
Andrew Stuart-Murray
Chief Financial Officer
Robert Petherbridge
Executive Director, Strategic Policy and Executive Services
Mary Campbell
General Manager TAFE Queensland SkillsTech
Brent Kinnane
General Manager TAFE Queensland South West
Garry Kinnon
A/General Manager TAFE Queensland Brisbane
Jo Pyne
General Manager TAFE Queensland North
Karen Dickinson
General Manager TAFE Queensland Gold Coast
Paul Wilson
General Manager TAFE Queensland East Coast
ANNUAL REPORT 2016-17 | 19
The TAFE Queensland Board provides the strategic direction and vision and the Executive team operationalises the activity required to implement the Strategic Plan for the organisation.
ORGANISATIONAL STRUCTURE
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This Annual Report demonstrates some great achievements against our strategic priorities and outlines a strong performance for TAFE Queensland in 2016-17.
At the end of 2016, Minister D’Ath
announced a changing of the guard for
the TAFE Queensland Board. Outgoing
board members, including Chair, Warren
Tapp, were recognised for their influential
contribution to TAFE Queensland
during the establishment and transition
to a statutory body and their critical
role in managing the performance of
Queensland’s largest public provider
of training.
The appointment of five new and two
continuing board members will play a
key role in shaping TAFE Queensland’s
strategic direction over coming years
to provide direction and guidance
to Queensland’s largest provider of
vocational training. The balance of new
and continuing members will provide
leadership continuity while reinvigorating
the Board with new skills and experience
to meet TAFE Queensland’s emerging
challenges.
TAFE Queensland’s new Board has
set a clear strategic direction for the
organisation as TAFE Queensland
continues to deliver quality and
responsive services as the state’s largest
provider of further education and training.
During 2016-17 the Board, comprised
of the Chair and six members, met their
legislated requirements through the
development of the TAFE Queensland
Strategic Plan 2017-2021 and
submission of the TAFE Queensland
Operational Plan 2017-18 to the Minister
for Training and Skills.
During the reporting period, the Board
held eight meetings and travelled
to Ipswich, Logan and Mt Isa, to
connect and actively engage with key
stakeholders, employers, industry,
community members and staff to build
on reputation and better understand local
training needs, now and into the future.
During the year, the Board has also
played a key role in guiding the further
development of TAFE Queensland’s safety
culture, risk management practices,
financial sustainability and strategic
positioning in the highly competitive VET
market.
The TAFE Queensland Board has
continued to build on its strong reputation
as a leader of VET sector policy. This is
illustrated through TAFE Queensland’s
contribution to a number of key
consultation processes over the last
12 months.
In 2016-17, TAFE Queensland provided
the following submissions to national
consultation processes:
• Australian Government’s Driving
Innovation, Fairness and Excellence in
Higher Education Discussion Paper.
• Australian Government’s Review of the
National VET Provider Collection Data
Requirements Policy.
• Australian Government’s VET Student
Loans Eligible Course List.
• Australian Parliament’s Inquiry into
Innovation and Creativity Inquiry.
• Pre-Budget submission to the
Australian Government.
• Submission to the Senate Inquiry in the
Higher Education Support legislation
amendment (A more sustainable,
responsive and transparent higher
education system).
• Queensland Government’s Department
of Education and Training’s VET Quality
Framework.
• Submission to the Jobs Queensland
Positive Futures: Apprenticeships and
Traineeships in Queensland.
• Queensland Government’s Department
of Education and Training’s Advancing
Skills for the Future: A Strategy for VET
in Queensland.
• Queensland Government’s Department
of Education and Training’s Advancing
Aboriginal and Torres Strait Islander
Education and Training draft action
plan.
The TAFE Queensland Board will continue
to engage with and influence policy within
the sector. This objective will be a key
focus of the Board throughout 2017-18
and will provide ongoing benefit to both
TAFE Queensland and the VET sector
more broadly.
BOARD BUSINESS IN 2016-17
ANNUAL REPORT 2016-17 | 21
TAFE Queensland Performance Measure2016-17
Target/estimate
2016-17
Actual
Proportion of all attempted competencies successfully completed 90% 89.8%
Student post training outcome (employed or in further study after training) 88% 86.0%
Proportion of graduates satisfied with the overall quality of their training 90% 86.8%
Proportion of employers satisfied with the overall quality of training 85% 92.8%
Average cost per competency successfully completed ($) $799 $825
89.8
Successful competency
The proportion of all attempted
competencies successfully completed
was 89.78% which is on par with
2015-16 results and indicates that
nearly 9-out-of-10 competencies per
student were successfully achieved.
$825$799
Average cost per competency
87%
Student satisfaction
The proportion of graduates satisfied
with the overall quality of their training
was 87%, a positive result, however
slightly behind the target for 2016-17.
93%
Employer satisfaction
The proportion of employers satisfied
with the overall quality of training
was 93%, significantly better than
the target of 85%.
Graduates employed or in further study
86%
The percentage of students achieving
a post training outcome (employed or
in further study after training) was 86%
which is on par with 2015-16 results.
The average cost per
competency was $825 and
is behind the target of $799.
Performance against this
measure is impacted by a
number of variables, including
volume of training activity, type
and duration of competencies
delivered, class sizes and
general cost increases
(wage and CPI increases).
PERFORMANCE MEASURES
%
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Ms Annabel DolphinChair
Ms Annabel Dolphin has held several independent non-executive board roles and leadership
positions across the private, government and resources sectors. Possessing a unique blend of
business, human resources and directorship experience, Annabel has extensive business strategy,
human resource management and leadership expertise. Annabel is an Independent Non-Executive
Director of North Queensland Bulk Ports as well as Chair of People and Culture Committee and
Member of the Audit and Financial Risk Committee. Annabel is a Director of Mater Health Services
North Queensland and currently is a member of several private Advisory Boards in mining services,
manufacturing, professional services, civil construction, and retail travel. Annabel was previously a
Non-Executive Director of Ergon Energy. She holds a Bachelor of Business Management, Diploma in
Neuroscience of Leadership, and a Graduate of the Australian Institute of Company Directors.
BOARD MEMBERS
Ms Noela L’EstrangeMember
Noela L’Estrange is a highly experienced
Director in both public and private
sectors, including education, utilities and
not-for profits.
She has expertise in in corporate
governance and leadership, ethics,
learning and development. She is a Fellow
of both AIM and AICD, a full member of
the Queensland Law Society, and was a
founding member of the Women Lawyers
Association of Queensland (WLAQ), of
which she is an Honorary Life Member.
She was one of the first women to be
made a Fellow of the AIM. From 2009-
15, she was CEO of the Queensland
Law Society, the first female to hold the
position. She is also a Director of National
Seniors Australia. She holds a BA(Hons),
LL.B and a Masters of Administration.
Ms Louise CoxMember
Ms Louise Cox is an experienced Board
member serving as Chair, Deputy Chair,
Chair of Finance and Risk, and Chair
of Governance in commercial, public
sector, and not for profit boards across a
broad sector group including education,
professional services in legal, architecture
and accounting, management
consultancy and mental health. Louise is
a member of the Executive Committee
of the Caxton Legal Centre and a Fellow
of CPA Australia and the Tax Institute
of Australia, Chair of Griffith University’s
Department of Accounting, Finance
and Economics Advisory Board, and a
member of QUT’s School of Accountancy
- School Advisory Committee. Louise
has previously served as a member and
Chair of the Metropolitan South Institute
of TAFE Advisory Council from December
2008 to June 2014, and as a Director
of Open Minds and ThomsonAdsett
Architects.
Mr Peter DowlingMember
Mr Peter Dowling is an Accountant
(FCPA and FCA) and Company Director.
He is a former Ernst and Young Tax and
Business Advisory Partner. He was made
a Member of the Order of Australia (AM)
in the General Division for services to
accountancy and the community.
He has served on Government and
private sector boards over a 15 year
period. His current Board positions
include Healthdirect Australia, Metro
South Hospital and Health Services
Board, Workcover Queensland and
Lexon Insurance.
He also holds Audit Committee roles
as Chair or Member on a number of
local government councils and State
government departments. He is also
the Honorary Queensland Consul for
Botswana. Peter was a member of the
inaugural TAFE Queensland Board.
ANNUAL REPORT 2016-17 | 23
Mr Shaun CoffeyMember
Shaun Coffey is an experienced Chair,
Non-Executive Director and Chief
Executive specialising in leadership and
strategy, capacity building and R&D
management.
He has a significant portfolio of
governance experience that was
developed alongside a successful career
in executive management in Australia and
New Zealand. He was elected a Fellow of
the Australian Academy of Technological
Sciences and Engineering in 2004, and a
Companion of the Royal Society of New
Zealand in 2009.
He has been a Fellow of the Australian
Institute of Company Directors since
2006. Shaun has worked in both the
private and public sectors, and in for-
profit and not-for-profit organisations. His
governance experience spans various
industry sectors including agriculture,
animal health, pharmaceuticals,
food processing, industrial R&D,
manufacturing, and renewable energy.
Currently Shaun leads a governance,
leadership and strategy advisory service
operating internationally.
Mr Peter PriceMember
Peter began his career in the electricity
industry in 1981 after attaining an
Honours Bachelor Degree in Engineering
and a Masters in Engineering Science at
the University of Queensland.
He was an Executive General Manager in
Energex from March 2006 to November
2016 leading Programming, Procurement
and Services, Network Performance
and Asset Management business units.
His senior management experience
has seen him involved in all aspects of
the energy industry that has led him to
become a recognised industry leader.
Peter has recently be appointed as
Energy Queensland’s Asset Safety &
Performance Team with a commitment
to ensure that Queensland distribution
electricity assets perform safely and
optimally and deliver exceptional value for
our customers over all timeframes.
He has a strong background in
Queensland’s skills and training sector
as Chairperson of Energy Skills
Queensland, a member of the TAFE
Reform Board, the inaugural TAFE
Queensland Board and (former)
Chairperson of Skills Tech Australia. Peter
holds an Honours Bachelor Degree in
Engineering and a Masters in Engineering
Science and is also a Procurement
Professional (MCIPS) and a Fellow of
the Australian Institute of Company
Directors. He has a strong commitment
to safety, effective risk management, and
disruptive technologies.
Ms Deborah WilsonMember
Deborah is an experienced Company
Director having held several independent
board roles across government, the
private sector, and a listed organisation.
Currently on the board of ThomsonAdsett
Architects and Australia’s CEO Challenge
including various committee positions -
Strategy and Vision, People and Culture
and Finance and Audit.
Deborah is currently the General
Manager at OnTalent, a boutique talent
management organisation. Having
spent some 20+ years in the fast paced
and highly competitive recruitment and
careers sector, Deborah reflects on
sales cultures, global transformations
and digital disruptions that continue
to challenge individuals and business.
She has held executive roles of Chief
Executive Officer and Managing Director
of a listed recruitment company.
Deborah is a Fellow of the Institute of
Company Directors and holds a Master of
Organisational Leadership. She was also
a prior member of the Brisbane North
Institute of TAFE Council and Director of
the Southbank Institute of Technology.
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COMMITTEES
Audit Finance and Risk Management CommitteeThis committee advises the Board
on the quality of external operating
controls, reviews financial risks, internal
and external audit functions, financial
statements and risk management.
In 2016-17, the committee continued its
focus on embedding TAFE Queensland’s
Risk Management Framework with a goal
of improving the visibility and management
of risks faced by the business.
TAFE Queensland’s risk management
framework includes policy and
procedures that are based on the
approach that TAFE Queensland will be
risk aware, responsive, agile and resilient
and allow for the review and addressing
of risks that have the potential to effect
the strategic and operational objectives
of our organisation.
TAFE Queensland conducts risk
management activities in accordance
with the international standard for risk
management. The committee has been
focussed on maturing four risk attributes:
risk leadership, knowledge management,
governance and assurance, along with
resources, tools and processes.
The Board maintain a risk appetite that
guide the decision making frameworks
across the organisation and manages
quarterly reviews of known and emerging
risks via the TAFE Queensland Executive,
this committee and the Board, including
the establishment and monitoring of
mitigation strategies.
The organisation’s compliance obligations
also remained in focus for the committee,
aided by the involvement of internal
auditors PricewaterhouseCoopers, in
conjunction with the Queensland Audit
Office, to deliver a program of audit work
for 2016-17.
The audit function is managed through
this committee and is used to determine
whether TAFE Queensland’s risk
management controls and governance
processes, as designed and represented
by management, is adequate and
functioning in a manner to ensure:
• risks are appropriately identified and
managed
• interaction with the various groups
involved with governance occurs as
needed
• significant financial, managerial, and
operating information is accurate,
reliable, and timely
• employees’ actions are in compliance
with policies, standards, procedures,
and applicable laws and regulations
• resources are acquired economically,
used efficiently, and are adequately
protected
• programs, plans and objectives are
achieved
• quality and continuous improvement
are fostered in TAFE Queensland’s
governance and internal control
process
• significant legislative or regulatory
issues impacting TAFE Queensland are
recognised and addressed properly.
The specific scope of work is set by
the annual audit plan which for
2016-17 included:
• review of cost management
• review of ICT security framework
• review of asset management
• review of fraud management
• review of financial services provision.
The committee continued to provide
guidance and significant input into work
health and safety strategies with the
goal of continuous improvement and
implementation of a consistent safety
culture throughout the organisation until
January 2017 when the newly appointed
Board made the decision to transfer
responsibility for work health and safety
oversight to the People, Culture and
Safety Committee (PCSC).
TAFE Queensland’s risk management and
internal audit activities are cognisant of
key legislative requirements, such as the
TQ Act and the Financial Accountability Act 2009. The activities were also
undertaken with due regard to the
Queensland Treasury Audit Committee Guidelines 2012.
The members of the Audit, Finance and
Risk Management Committee for 2016-17
were Peter Dowling (Chair), Peter Price
and Darrell Butcher up to 30 November
2016. The newly appointed Board held
its first meeting on 17 January 2017
and reconfirmed Peter Dowling as the
continuing Chair of this committee,
Shaun Coffey and Louise Cox as
members and Annabel Dolphin
(Board Chair) as an observer.
ANNUAL REPORT 2016-17 | 25
People, Culture and Safety
Committee
The role of this Committee is to provide
advice on appointments, retirements
and removal of Board members and
to establish a process for the regular
evaluation of the Board, Executive
Directors and senior staff. The Committee
also advises on the appointment and
remuneration of the CEO.
In February 2017, as part of the annual
review of Board and Committee terms
of reference, the Board resolved to
change the name of the Remuneration
and Nomination Committee to the
People, Culture and Safety Committee
recognising the importance of TAFE
Queensland’s commitment to providing
a safe, healthy and productive working
environment for all people.
During the year, this Committee played
a significant role in the Chief Executive
Officer’s performance review for 2016-
17, appointment of the new General
Manager for TAFE Queensland Gold
Coast and new General Manager for
TAFE Queensland Brisbane and the
appointment of the new Chief Human
Resources Officer. In addition, the
Committee provided guidance and input
into the High Performance Scheme
including development of the Chief
Executive Officer’s key performance
indicators and Performance Management
Framework.
The members of this committee in 2016-
17 were Anita Brown (Chair), Elizabeth
Honeycombe and Vivienne Mallinson
and new members endorsed at 17
January 2017 Board Meeting – Deborah
Wilson (Chair), Annabel Dolphin, Noela
L’Estrange and Peter Price.
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Workforce planning and performanceOur annual Employee Engagement
Survey continues to provide valuable
feedback from staff to inform our
workforce strategy. We had a strong
response rate to the 2017 Employee
Engagement Survey – 78% for TAFE
Queensland overall – and a good
response rate across all regions.
To ensure we remain the market leader
in high quality education and training,
TAFE Queensland’s refreshed workforce
strategy follows the employment lifecycle.
Our Educator Capability Framework,
which guides our educational delivery
staff in their development, has been
introduced and is being used in the new
performance planning and development
process.
The new performance planning and
development process, which emphasises
performance conversations and alignment
to the TAFE Queensland Strategic Plan,
has been introduced to all staff across
TAFE Queensland.
Our Leadership Capability Framework is
being used by TAFE Queensland Services
staff in their performance development
conversations, as well as guiding the
leadership and coaching development
framework for TAFE Queensland.
Our staff awards have now been
embedded across TAFE Queensland,
with the third state awards ceremony
further enhancing our ability to reward
high achievers. The TAFE Queensland
High Performance Scheme is also in
place, which rewards senior leaders who
achieve stretch targets.
Networked leadership is now part of the
vernacular of TAFE Queensland, with
leaders understanding the need to share
and use strengths with each other to be
effective leaders.
The safety and well-being of all our
employees, students and industry
partners who visit our sites continues to
be a focus. Recent Workplace Health
and Safety (WHS) audit results indicate
a significant improvement across TAFE
Queensland.
Our vision of Safety Leadership:
‘Everybody Safe at Work’ now takes an
holistic, strategic approach to WHS with
a focus on continuing to embed a safety
culture across TAFE Queensland.
Employee relations frameworkUntil 4 January 2017, TAFE Queensland’s
workforce operated under a number of
industrial instruments:
• the TAFE Teachers Award – State 2012
and the Senior Colleges Awards –
State 2012 as well as the Department
of Education, Training and Employment
TAFE Educational Employees Certified
Agreement 2012 – for teaching staff.
• the Public Service Award – State
2012, the Employees of Queensland
Government Departments (Other
than Public Servants) Award – State
2012, the Building Trades Public
Sector Award – State 2012 and the
Engineering Award – State 2012
as well as the State Government
Departments Certified Agreement
2009 – for non-teaching staff.
On 5 January 2017 the TAFE Queensland
(TAFE Services Employees) Certified
Agreement 2016 and TAFE Queensland
Educators Certified Agreement 2016 were
certified and came into effect.
At the same time, the TAFE Queensland
Award – State 2016 also came into
effect. The Award and Agreements
work together to set the employment
conditions for most of our employees.
Individual Employment Agreements are
used to engage our executive staff.
OTHER REPORTING REQUIREMENTS
ANNUAL REPORT 2016-17 | 27
Public sector ethicsTAFE Queensland is defined as a
Queensland public service agency for
the purposes of the Public Sector Ethics Act 1994. For this reason, there is an
obligation to comply with the Code of
Conduct for the Queensland Public
Service.
All TAFE Queensland employees are given
access to appropriate education and
training about public sector ethics as part
TAFE Queensland’s Orientation Program
(which contains a mandatory unit on the
Code of Conduct.) This unit is available
online to all employees at all times and
can be used at regular intervals during
their employment as required.
The Working with TAFE: Conduct, Ethics and Performance Policy is
the basis of the TAFE Queensland
framework of administrative human
resource procedures and management
practices. These have proper regard to
the ethics principles and values of TAFE
Queensland. There is a strong alignment
with the Code of Conduct for the
Queensland Public Service.
In addition, the planning processes of
TAFE Queensland are congruent with
the public sector ethics principles and
incorporate integrity and accountability
into our strategies, objectives and
actions. Integral to the framework of
our employee performance agreements
is the requirement that our behaviours
incorporate the ethical priorities of the
Public Sector Ethics Act 1994.
Information systems and record keepingWith the increasing global cyber-
security risks to corporate and personal
information, TAFE Queensland has taken
a proactive response by adopting the
ISO/IEC 27001 Information Security Management Standards. We have
commenced design and implementation
of a standards compliant Information
Security Management System (ISMS),
taking a risk based approach to
information security with clear executive
accountabilities and a controls framework
for how our people, processes and
technology work together to secure
information.
The ISMS represents a program of work
with progressive operationalisation over
18 months.
Analytics remains an organisational focus
across TAFE Queensland’s corporate
and regional offices; developing new
information assets and contributing
performance dashboards to the corporate
data warehouse.
Training has taken the form of basic and
advanced user sessions reinforced with
facilitated workshops to develop analytical
skills across the organisation.
TAFE Queensland has continued to
improve its recordkeeping maturity with
an electronic document store now in
excess of 150,000 records including
executive correspondence and business
processes for finance, human resources
and general administration.
Paper based personnel files have been
digitised to improve information search
and retrieval and a program is planned
to extend the scope and management
of digitised records under a Queensland
State Archives compliant digitisation
policy.
This year our HP Records Manager
(HPRM), was upgraded to its next
version, HP Enterprise Content
Manager (HPECM), providing additional
document management features and
positioning TAFE Queensland to take
advantage of the latest desktop operating
environments.
Our Information Management Framework
identifies the disciplines necessary
to manage information efficiently and
in compliance with legislation and
standards.
This year we have added or revised
policies, procedures or guidelines for
recordkeeping, archiving, Right to
Information, privacy, and information
security to the policy framework.
External scrutinyTAFE Queensland was not subject to
external scrutiny for this reporting period.
28 | tafeqld.edu.au
ContentsStatement of Comprehensive Income 29
Statement of Financial Position 30
Statement of Changes in Equity 31
Statement of Cash Flows 32
1. Corporate identity 33
2. Basis of preparation 33
3. Joint arrangements 34
4. Controlled entities 34
5. Sales of goods and services 35
6. Grants and contributions 35
7. Employee expenses 36
8. Supplies and services 37
9. Other expenses 37
10. Cash and cash equivalents 38
11. Receivables 39
12. Property, plant and equipment 40
13. Intangible assets 43
14. Payables 45
15. Employee benefits 45
16. Other current liabilities 46
17. Commitments for expenditure 46
18. Contingencies 47
19. Financial instruments 47
20. Budget vs actual comparison 50
21. Key management personnel 55
22. Related party transactions 58
23. New and revised accounting standards 58
24. Future impact of accounting standards not yet effective 59
25. Events occurring after balance date 59
FINANCIAL STATEMENTS2016 –17
ANNUAL REPORT 2016-17 | 29
Notes
2017
$'000
2016
$'000
Income
Sales of goods and services 5 278,328 270,269
Grants and contributions 6 396,144 360,788
Other income 12,689 14,376
Total income 687,161 645,433
Expenses
Employee expenses 7 397,965 389,269
Supplies and services 8 250,239 225,586
Grants and subsidies 1,889 1,227
Depreciation and amortisation 12,013 7,001
Impairment of non-current assets - 7,022
Other expenses 9 5,093 3,368
Total expenses 667,201 633,474
Operating result 19,960 11,959
Other Comprehensive Income
Increase (decrease) in asset revaluation surplus 58 68
Total Other Comprehensive Income 58 68
Total comprehensive income for the year 20,018 12,027
The accompanying notes form part of these statements.
STATEMENT OF COMPREHENSIVE INCOMEfor the year ended 30 June 2017
30 | tafeqld.edu.au
STATEMENT OF FINANCIAL POSITIONas at 30 June 2017
Notes
2017
$'000
2016
$'000
Current assets
Cash and cash equivalents 10 216,185 231,196
Receivables 11 100,738 82,883
Inventories 852 663
Other current assets 8,039 7,966
Total current assets 325,813 322,709
Non-current assets
Property, plant and equipment 12 42,089 28,668
Intangible assets 13 28,101 15,448
Total non-current assets 70,190 44,116
Total assets 396,003 366,825
Current liabilities
Payables 14 42,328 39,233
Employee benefits 15 18,967 21,953
Other current liabilities 16 44,501 36,751
Total current liabilities 105,796 97,937
Non-current liabilities
Total non-current liabilities - -
Total liabilities 105,796 97,937
Net assets 290,207 268,888
Equity
Contributed equity 170,096 168,795
Accumulated surplus / (deficit) 119,986 100,025
Asset revaluation surplus 125 68
Total equity 290,207 268,888
The accompanying notes form part of these statements.
ANNUAL REPORT 2016-17 | 31
STATEMENT OF CHANGES IN EQUITYfor the year ended 30 June 2017
Accumulated
Surplus /
(Deficit)
Asset
Revaluation
Surplus
Contributed
EquityTOTAL
$’000 $’000 $’000 $’000
Balance at 1 July 2015 88,067 - 151,263 239,329
Net transfers in/(out) from other
Queensland Government entities- - 17,532 17,532
Operating result 11,959 - - 11,959
Increase in asset revaluation surplus - 68 - 68
Balance at 30 June 2016 100,025 68 168,795 268,888
Net transfers in/(out) from other
Queensland Government entities- - 1,301 1,301
Operating result 19,960 - - 19,960
Increase in asset revaluation surplus - 58 - 58
Balance at 30 June 2017 119,986 125 170,096 290,207
The accompanying notes form part of these statements.
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STATEMENT OF CASH FLOWSfor the year ended 30 June 2017
Notes
2017
$'000
2016
$'000
Cash flows from operating activities
Sales of goods and services 293,420 284,360
Grants and contributions 374,708 357,799
GST input tax credits from ATO 24,260 19,419
Interest received 4,780 6,555
Other receipts 6,640 6,773
Employee expenses (401,898) (386,521)
Supplies and services (268,938) (251,237)
Grants and subsidies (1,889) (1,227)
GST remitted to ATO (11,774) (6,893)
Other payments (2,414) (2,555)
Net cash provided by operating activities 10 16,896 26,473
Cash flows from investing activities
Sales of property, plant and equipment 50 82
Payments for property, plant and equipment (13,110) (2,317)
Payments for intangibles (18,848) (15,297)
Net cash used in investing activities (31,907) (17,532)
Net increase in cash and cash equivalents (15,012) 8,940
Cash and cash equivalents at beginning of financial year 231,196 222,256
Cash and cash equivalents at end of financial year 10 216,185 231,196
The accompanying notes form part of these statements.
ANNUAL REPORT 2016-17 | 33
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
1. Corporate identityTAFE Queensland was established
as a statutory body under the TAFE Queensland Act 2013 on 1 July 2013.
TAFE Queensland is a not-for-profit entity
governed by an independent board.
TAFE Queensland is the largest and most
experienced provider of VET in the state,
with a history of serving Queensland’s
communities for over 130 years.
Each year TAFE Queensland enrols over
120,000 students across a network
of over 50 campuses in Queensland,
in employers’ workplaces, online
and in markets offshore. Our offering
spans foundation skills and entry level
qualifications to higher education degrees
across more than 500 programs.
2. Basis of preparation(a) Compliance with prescribed
requirements
These financial statements are general
purpose financial statements which have
been prepared in accordance with:
• applicable Australian Accounting
Standards (AASBs) and Interpretations
• Financial Accountability Act 2009
• Financial and Performance Management Standard 2009
• Queensland Treasury’s Minimum
Reporting Requirements for reporting
periods beginning on or after 1 July
2016
• Statutory Bodies Financial Arrangement Act 1982
• other authoritative pronouncements.
New accounting standards early adopted
and/or applied for the first time in these
financial statements are outlined in
Note 23 New and Revised Accounting
Standards.
The financial statements are authorised
for issue by the Chairperson, TAFE
Queensland Board, the Chief Executive
Officer, and Chief Financial Officer at
the date of signing the Management
Certificate.
(b) Measurement of fair values
TAFE Queensland’s accounting policies
and disclosures require the measurement
of fair values for non-financial assets
relating to property, plant and equipment
and financial instruments. Fair value
is defined as the price that would be
received to sell an asset or paid to
transfer a liability in an orderly transaction
between market participants at the
measurement date.
All assets and liabilities for which fair value
is measured or disclosed in the financial
statements are categorised within the
following fair value hierarchy based on the
inputs used in the valuation techniques as
follows:
• Level 1: quoted prices in active
markets for identical assets or
liabilities.
• Level 2: inputs other than quoted
prices included in Level 1 that are
observable for the asset or liability,
either directly or indirectly.
• Level 3: inputs for the asset or liability
that are not based on observable
market data (unobservable inputs).
If the inputs used to measure the fair
value of an asset could be categorised in
different levels of the fair value hierarchy,
the fair value measurement is categorised
in its entirety in the same level of the
fair value hierarchy as the lowest level
input that is significant to the entire
measurement.
Further information about the
assumptions made in measuring fair value
is included in Note 12 Property, Plant
and Equipment, and Note 19 Financial
Instruments.
(c) Presentation
Items included in the financial statements
are measured using the currency of
the primary economic environment in
which the entity operates (‘the functional
currency’). The financial statements are
presented in Australian dollars, which
is TAFE Queensland’s functional and
presentation currency.
Foreign currency transactions are
translated into the functional currency
using the average exchange rates
prevailing each month in which
transactions occur. Foreign exchange
gains and losses resulting from the
settlement of such transactions and
from the translation of monetary assets
and liabilities denominated in foreign
currencies at year end exchange rates are
generally recognised in profit or loss.
Amounts included in the financial
statements have been rounded to
the nearest thousand dollars, unless
disclosure of the full amount is specifically
required.
Comparative information has been
restated where necessary to be
consistent with disclosures in the current
reporting period.
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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
2. Basis of preparation (continued)(d) Use of estimates and judgements
The preparation of financial statements
requires management to make estimates,
judgements, and assumptions that affect
the application of accounting policies
and the reported amounts of assets,
liabilities, income, and expenses. The
estimates and associated assumptions
are based on historical experience and
other factors that are considered relevant.
Actual results may differ from these
estimates. Estimates and underlying
assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates
are recognised in the period in which
the estimate is revised and in any future
periods affected.
In particular, information about significant
areas of estimation, uncertainty and
critical judgements in applying accounting
policies that have the most significant
effect on the amount recognised in the
financial statements are described in the
following notes:
• Note 11 Receivables
• Note 16 Other current liabilities.
3. Joint arrangementsJoint arrangements exist when two or
more parties have joint control. Joint
control is the contractually agreed sharing
of control of an arrangement, which exists
only when decisions about the relevant
activities require the unanimous consent
of the parties sharing control.
During 2016-17 TAFE Queensland
partnered with Sunshine Coast Hospital
and Health Service (SCHHS) and
University of Sunshine Coast (USC) in the
operation of the Sunshine Coast Health
Institute (SCHI). SCHI operates as a joint
arrangement under an unincorporated
joint venture agreement, based at the
new Sunshine Coast University Hospital.
The primary aims of SCHI are to advance
the education of trainee medical officers,
nurses, midwives, and other health care
professionals, while providing outstanding
patient care and extending research
knowledge. Each partner has rights
and obligations to the assets, liabilities,
revenue and expenses of SCHI.
TAFE Queensland has accounted for its
interest in the joint arrangement, including
recognising its share of assets, liabilities
and expenses jointly held/incurred,
in accordance with AASB 11 Joint Operations.
The initial share allocation under the joint
arrangement is:
• Sunshine Coast Hospital and
Health Service: 52.6%
• University of
Sunshine Coast: 23.7%
• TAFE Queensland: 23.7%
4. Controlled entitiesThe following entity is controlled by TAFE
Queensland:
Directly Controlled
Name: TAFE Queensland International
Education Pty Ltd
Purpose and Principal Activities:
Deliver training services and provide
international development assistance.
% Interest in Entity & Basis for Control:
100% interest in ordinary share capital
enabling control of majority voting rights.
Financial Information:
Total Assets: 2017: $1.315m
Total Revenue: 2017: $6.805m
Total Liabilities: 2017: $1.085m
Total Operating Result: 2017: $0.230m
In July 2016 TAFE Queensland
participated, with the approval of the
Treasurer, in the formation of TAFE
Queensland International Education Pty
Ltd (TQIE) and controls 100% of the share
capital and voting rights in the company.
TQIE’s registered office is in Brisbane,
and its purpose is delivering training
services and providing international
development assistance and support
to the Commonwealth Department of
Foreign Affairs and Trade (DFAT) and to
any other entity engaged in the provision
of such services from time to time.
The predominant source of revenue for
TQIE is earned through sub-contracting
from TAFE Queensland for the delivery
of services under the Australia Pacific
Technical College (APTC) contract with
DFAT. In 2016-17 TQIE recognised
revenues totalling $6.805m in relation to
services provided to TAFE Queensland.
The transactions and balances of TQIE
are immaterial to TAFE Queensland
and the economic entity and therefore
have not been consolidated in financial
statements.
ANNUAL REPORT 2016-17 | 35
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
5. Sales of goods and services2017
$'000
2016
$'000
Student fees and charges 165,021 162,654
Fees for training services 110,113 104,656
Sales of goods and ancillary services 3,193 2,959
Total 278,328 270,269
Sales of goods and services are recognised as revenues when it has been earned and can be measured reliably with a sufficient
degree of certainty. Accrued revenue is recognised if the revenue has been earned but not yet invoiced.
6. Grants and contributions
Queensland government grants and contributions
– Queensland government subsidised training 156,703 141,235
– VET Purchasers grant 134,000 134,000
– Rental support grant 47,786 40,526
– Corporate operating grant 33,246 34,158
– Other grants and contributions 14,887 4,017
Commonwealth government grants and contributions 4,541 3,389
Other donations, sponsorships, and contributions 4,980 3,463
Total 396,144 360,788
Grants, contributions, donations and gifts received that are non-reciprocal in nature are recognised as revenue on receipt or when
it is probable that the economic benefits will flow to TAFE Queensland, has a right to receive the contribution, and the value of that
benefit can be reliably measured. Grants received that are reciprocal in nature are recognised over the term of the arrangements.
TAFE Queensland’s cost disadvantage in the market is recognised by the VET Purchaser’s grant, which funds TAFE Queensland
for the differential staffing costs between public and private training providers.
Queensland government subsidised training relates to the component of course fees that is received for eligible students from the
Queensland government.
36 | tafeqld.edu.au
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
7. Employee expenses2017
$'000
2016
$'000
Salaries and wages 280,035 273,068
Annual leave 28,965 28,052
Long service leave 6,853 6,576
Employer superannuation contributions 38,517 37,116
Other employee benefits 21,115 22,629
Payroll tax and fringe benefits tax 17,444 16,476
Other employee-related expenses 5,036 5,353
Total 397,965 389,269
The number of employees as at 30 June 2017, including both full-time employees and part-time employees measured on a full-
time equivalent basis (reflecting Minimum Obligatory Human Resource Information (MOHRI)) is 4,072 (4,174 full time equivalent
2015-16).
Salaries, wages and sick leave
Salaries and wages due but unpaid at
reporting date are recognised as a liability
at current salary and wage rates. Prior
history indicates that on average, sick
leave taken each reporting period is less
than the entitlement accrued. As sick
leave is non-vesting, a liability for unused
sick leave entitlements is not recognised.
An expense is recognised for this leave
when taken.
Annual leave and long service leave
TAFE Queensland employs people in
Australia under state-based awards
and it also employs people overseas in
connection with APTC in accordance with
the laws of the local jurisdictions in which
APTC operates – Fiji, Vanuatu, Papua
New Guinea, and Solomon Islands.
For employees on Queensland-
based conditions of employment,
TAFE Queensland is a member of the
Queensland Government’s Annual Leave
Central and Long Service Leave Central
Schemes. A levy is payable to these
schemes to cover the cost of employees’
annual leave (including leave loading
and on-costs) and long service leave.
These levies are expensed in the period
in which they are payable. Amounts
paid to employees for annual leave and
long service leave are claimed back
from the schemes quarterly in arrears.
TAFE Queensland does not recognise a
provision for annual leave or long service
leave in the financial statements as these
liabilities are held, and reported, on a
whole-of-government basis.
For employees employed under foreign
conditions of employment, a liability for
annual leave accrued up to the end of
the reporting period is recognised based
on current salary and wage rates, and
includes employer related on-costs. The
liability for long service leave is recognised
in the provision for long service leave
and measured as the present value
of expected future payments to be
made in respect of services provided
by employees up to the reporting date.
Consideration is given to the expected
future wage and salary levels, experience
of employee departures, and periods of
service. Expected future payments are
discounted using marked yields at the
reporting date on government bonds
with terms to maturity and currency
that match, as closely as possible, the
estimated future cash outflows.
Superannuation schemes
TAFE Queensland contributes to the State
Government Superannuation Contribution
Scheme (QSuper) for employees under
both the defined benefit scheme and the
accumulation superannuation scheme.
TAFE Queensland also contributes
to several other externally manage
accumulation superannuation schemes.
Contributions are expensed in the period
in which they are paid or payable.
ANNUAL REPORT 2016-17 | 37
8. Supplies and services2017
$'000
2016
$'000
Contractors 43,075 28,835
Property rental 50,792 49,196
Property, information technology support services, and transport 86,091 79,503
Travel and accommodation 8,510 6,847
Agents commissions 3,815 2,937
Advertising and promotions 9,776 10,700
Training materials 9,709 9,693
Printing and stationery 4,837 4,387
Minor equipment purchases 10,098 7,423
Subscriptions, books, and publications 3,976 4,467
Finance, human resources, and support services 4,001 6,208
Other supplies and services 15,559 15,390
Total 250,239 225,586
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
9. Other expenses
Other expenses includes remuneration to auditors. Total audit fees quoted by the Queensland Audit Office relating to the 2016-17
financial statements are $173,000 (2016 $153,000).
38 | tafeqld.edu.au
10. Cash and cash equivalents2017
$'000
2016
$'000
Cash at bank 72,557 70,777
Queensland Treasury Corporation Capital Guaranteed Cash Fund 143,628 160,419
Total 216,185 231,196
Cash and cash equivalents comprise cash on hand, cheques receipted but not yet banked, and other short term highly liquid
investments. Cash at bank includes educational bequests (including interest earnings) of $0.425m (2015-16 $0.423m).
Reconciliation of operating Result to Net Cash provided by Operating Activities
Operating Result 19,960 11,959
Non-cash items included in operating result:
Depreciation and amortisation 12,013 7,001
Asset Impairment - 7,022
(Gain)/Loss on sale of property, plant and equipment 339 63
Net SCHI contribution / write-off of assets (5,160) -
Change in assets and liabilities:
(Increase)/decrease in receivables (17,722) 5,875
(Increase)/decrease in GST input tax credits receivable (247) (5,105)
Increase/(decrease) in GST payable 114 4,086
(Increase)/decrease in inventories (189) (91)
(Increase)/decrease in other current assets (73) 725
Increase/(decrease) in accounts payable 3,095 (1,857)
Increase/(decrease) in accrued employee benefits (2,985) 2,802
Increase/(decrease) in other liabilities 7,750 (6,007)
Net cash provided by operating activities 16,896 26,473
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
ANNUAL REPORT 2016-17 | 39
11. Receivables2017
$'000
2016
$'000
Current
Trade debtors 23,660 29,857
Less: Allowance for impairment loss (4,002) (2,244)
19,659 27,613
GST receivable 3,910 3,777
Accrued revenue 70,695 45,112
Other receivables 6,475 6,382
Total 100,738 82,883
Receivables are recognised at amounts due at the time of sale or service delivery. Trade debtors are generally due for settlement
30 days from invoice date. Other receivables are due in accordance with their contractual terms.
Collectability of trade debtors is reviewed on an ongoing basis with provision being made for impairment as a proportion of the age
of the debt. Individual debts that are uncollectable are written off when identified. Movements in the provision for impairment are
recognised as an expense in that period. All known bad debts were written-off at 30 June 2017.
Receivables and payables are stated with GST included. The net amount of GST recoverable from the Australian Taxation Office is
includes as a current asset.
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
40 | tafeqld.edu.au
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
12. Property, plant and equipment2017
$'000
2016
$'000
Buildings:
At fair value 5,084 4,854
Less: Accumulated depreciation (3,579) (3,311)
Carrying amount 1,506 1,543
Plant and equipment:
At cost 105,251 98,146
Less: Accumulated depreciation (72,891) (72,596)
Carrying amount 32,361 25,550
Work in progress:
Gross 8,223 1,575
Carrying amount 42,089 28,668
Machinery of Government Changes
DET transferred plant and equipment to TAFE Queensland in accordance with Ministerial approval received from the Attorney-General
and Minister for Justice and Minister for Training and Skills on 5 March 2017. The effective date of the transfer was close of business
on 31 March 2017.
The increase in assets of $1.301m has been accounted for as an increase in contributed equity as disclosed in the Statement of
Changes in Equity.
ANNUAL REPORT 2016-17 | 41
12. Property, plant and equipment
(continued)Closing balances and reconciliation of
carrying amount
BuildingsPlant &
Equipment
Work in
ProgressTOTAL
2017
$’000
2017
$’000
2017
$’000
2017
$’000
Gross 5,084 105,251 8,223 118,558
Less: Accumulated depreciation (3,579) (72,891) - (76,469)
Carrying amount at 30 June 2017 1,506 32,361 8,223 42,089
Represented by movements in carrying amount:
Carrying amount at 1 July 2016 1,543 25,550 1,575 28,668
Acquisitions (including upgrades) 25 780 12,305 13,110
Transfers in - 6,461 - 6,461
Disposals - (389) - (389)
Transfers between asset classes - 6,095 (5,658) 438
Net revaluation increments in operating surplus/(deficit) 58 - - 58
Depreciation expense (120) (6,137) - (6,256)
Carrying amount at 30 June 2017 1,506 32,361 8,223 42,089
2016
$’000
2016
$’000
2016
$’000
2016
$’000
Gross 4,854 98,146 1,575 104,575
Less: Accumulated depreciation (3,311) (72,596) - (75,907)
Carrying amount at 30 June 2016 1,543 25,550 1,575 28,668
Represented by movements in carrying amount:
Carrying amount at 1 July 2015 1,588 4,744 - 6,332
Acquisitions (including upgrades) - 2,317 - 2,317
Transfers in - 17,532 - 17,532
Disposals - (128) - (128)
Transfers between asset classes - - 1,575 6,751
Net revaluation increments in operating surplus/(deficit) 68 - - 68
Depreciation expense (113) (4,090) - (4,203)
Carrying amount at 30 June 2016 1,543 24,550 1,575 28,688
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
42 | tafeqld.edu.au
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
12. Property, plant and
equipment (continued)
Asset classes
Each class of property, plant and
equipment is carried at fair value or cost
less, where applicable, any accumulated
depreciation and impairment losses.
Items of property, plant and equipment
with a total value in excess of the
following thresholds are recognised in the
year of acquisition:
Class of fixed asset Threshold
Buildings $10,000
Plant and equipment $5,000
Acquisition of property, plant and
equipment
Acquisitions of property, plant and
equipment are initially recorded at cost.
Cost is determined as the fair value of
consideration given to acquire the asset
plus costs incidental to the acquisition,
including engineering design fees and all
other establishment costs.
Costs incurred subsequent to the initial
asset purchase are capitalised when the
expenditure improves the condition of
the asset beyond its originally assessed
standard of performance or capacity.
Asset valuation
Each class of property, plant and
equipment is carried at fair value or cost,
less any accumulated depreciation and
impairment losses. Fair value is measured
in accordance with AASB 116 Property, Plant and Equipment and Queensland
Treasury’s Non-Current Asset Policies for
the Queensland Public Sector.
Buildings are measured at fair value
using a depreciated replacement cost
approach. Valuations are undertaken
annually to ensure that the carrying value
of the assets does not differ materially
from that which would be determined
using fair value at the end of the reporting
period. Due to the specialised nature
of this class of asset where there is
generally no active market, the fair value
is determined using information from a
variety of sources.
The fair value measurement for buildings
of $1.506m ($1.543m 2015-16) has been
categorised as a Level 3 in the fair value
hierarchy (refer to Note 2(b)).
Revaluations using independent
professional valuer or internal expert
appraisals are undertaken at least once
every five years. The effective date of
the last specific appraisal for TAFE
Queensland’s building was 30 June 2015,
conducted by quantity surveyor firm Gray,
Robinson & Cotterell (GRC).
The replacement cost estimate was
prepared from plans and elevations
together with available schedules and
specifications. Where this standard of
supplied information was not available
GRC determined appropriate information
from site surveys that were conducted.
GRC applied a combination of pricing
methodologies all of which were adjusted
to reflect the anticipated construction
market as at the effective reporting
date. Detailed estimates were also used
to determine the cost of replacing the
existing assets with a modern equivalent
asset.
The building asset class was not
specifically appraised in the reporting
period, however previous valuations
have been materially kept up-to-date
via the application of relevant indices.
TAFE Queensland ensures that the
application of such indices results in a
valid estimation of the assets’ fair values
at reporting date. The indices applied
in 2016-17 were prepared by quantity
surveyor firm Gray, Robinson & Cotterell
(GRC) on behalf of DET. With similar
assets as DET within this asset class,
TAFE Queensland has adopted the
recommended index of 4.38%.
GRC has undertaken sensitivity analysis
prior to determining the recommended
Building Price Index, to ensure that the
values are reflective and are relative to
other assets of a similar nature. Through
this process, which is undertaken
annually, management assesses and
confirms the relevance and suitability of
indices provided by GRC based on our
own particular circumstances.
The current value in use is considered to
materially reflect highest and best use for
all property, plant and equipment items.
Depreciation expense
Property, plant and equipment is
depreciated on a straight-line basis so
as to allocate the net cost or revalued
amount of each asset, less any estimated
residual value, progressively over its
estimated useful life to TAFE Queensland.
Straight line depreciation is used as that
is consistent with the consumption of
service potential of these assets over their
useful life to TAFE Queensland.
Any expenditure that increases the
originally assessed capacity or service
potential of an asset is capitalised and the
new depreciable amount is depreciated
over the life of the asset.
Assets under construction (work-in-
progress) are not depreciated until
construction is complete and the asset is
put to use or is ready for its intended use,
whichever is earlier. These assets are then
ANNUAL REPORT 2016-17 | 43
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
13. Intangible assets2017
$'000
2016
$'000
Intellectual property:
At cost 13,325 3,240
Less: Accumulated amortisation (6,124) (1,790)
Carrying amount 7,202 1,449
Software purchased:
At cost 9,268 13,333
Less: Accumulated amortisation (8,117) (11,400)
Carrying amount 1,151 1,933
Software internally generated:
At cost 24,845 24,845
Less: Accumulated amortisation (24,705) (24,517)
Carrying amount 140 328
Other intangible assets:
At cost 623 623
Less: Accumulated amortisation (237) (140)
Carrying amount 387 483
Work in progress:
Gross 19,222 11,254
Carrying amount 28,101 15,448
12. Property, plant and
equipment (continued)
reclassified to the relevant class within
property, plant, and equipment.
Depreciation methods, estimated useful
lives and residual values of property, plant
and equipment are reviewed annually and
adjusted if appropriate. The estimated
useful lives for each class of depreciable
assets are:
Class of fixed asset Useful life
(years)
Buildings 25 - 80
Plant and equipment 3 - 20
Gains and losses on disposals
Gains and losses on disposals are
determined by comparing proceeds
with the carrying amount of the asset at
the time of disposal. These gains and
losses are included in the Statement of
Comprehensive Income.
44 | tafeqld.edu.au
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
13. Intangible assets (continued)
Inte
lle
ctu
al
Pro
pe
rty
So
ftw
are
Pu
rch
ase
d
So
ftw
are
Inte
rna
lly
Ge
ne
rate
d
Oth
er
Inta
ng
ible
Asse
ts
Wo
rk in
Pro
gre
ss
TO
TA
L
20
17
$’0
00
20
17
$’0
00
20
17
$’0
00
20
17
$’0
00
20
17
$’0
00
20
17
$’0
00
Gro
ss
13
,32
59
,26
82
4,8
45
6
23
19,2
22
67,2
83
Less: A
ccum
ula
ted
am
ort
isation
(6,1
24
)(8
,11
7)
(24
,70
5)
(23
7)
- (3
9,1
82)
Carr
yin
g a
mo
un
t at
30 J
un
e 2
017
7,2
02
1,1
51
14
03
87
19,2
22
28,1
01
Rep
rese
nted
by
mov
emen
ts in
car
ryin
g am
ount
:
Carr
ying a
mount
at
1 J
uly
2016
1,4
49
1,9
33
32
84
83
11,2
54
15,4
48
Acq
uis
itio
ns (in
clu
din
g u
pgra
des)
--
--
18,8
48
18,8
48
Transfe
rs b
etw
een a
sset
cla
sses
10
,08
62
22
13
5-
(10,8
80)
(438)
Am
ort
isation e
xp
ense
(4,3
34
)(1
,00
4)
(32
3)
(97)
-(5
,757)
Carr
yin
g a
mo
un
t at
30 J
un
e 2
017
7,2
02
1,1
51
14
03
87
19,2
22
28,1
01
Inte
lle
ctu
al
Pro
pe
rty
So
ftw
are
Pu
rch
ase
d
So
ftw
are
Inte
rna
lly
Ge
ne
rate
d
Oth
er
Inta
ng
ible
Asse
ts
Wo
rk in
Pro
gre
ss
TO
TA
L
20
16
$’0
00
20
16
$’0
00
20
16
$’0
00
20
16
$’0
00
20
16
$’0
00
20
16
$’0
00
Gro
ss
3,2
40
13
,33
32
4,8
45
6
23
11,2
54
53,2
95
Less: A
ccum
ula
ted
am
ort
isation
(1,7
90
)(1
1,4
00
)(2
4,5
17
)(1
40
)-
(37,8
47)
Carr
yin
g a
mo
un
t at
30 J
un
e 2
016
1,4
49
1,9
33
32
84
83
11,2
54
15,4
48
Rep
rese
nted
by
mov
emen
ts in
car
ryin
g am
ount
:
Carr
ying a
mount
at
1 J
uly
2015
71
51
,99
84
63
-13,5
63
16,7
39
Acq
uis
itio
ns (in
clu
din
g u
pgra
des)
--
--
15,2
80
15,2
80
Transfe
rs b
etw
een a
sset
cla
sses
1,9
71
1,3
62
-4
84
(10,5
68)
(6,7
51)
Imp
airm
ent
losses r
eco
gnis
ed
in o
pera
ting s
urp
lus/
(defic
it)
--
--
(7,0
22)
(7,0
22)
Am
ort
isation e
xp
ense
(1,2
36
)(1
,42
6)
-(1
)-
(2,7
98)
Carr
yin
g a
mo
un
t at
30 J
un
e 2
016
1,4
49
1,9
33
32
84
83
11,2
54
15,4
48
Clo
sin
g b
ala
nces a
nd
reco
ncilia
tio
n
of
carr
yin
g a
mo
un
t
ANNUAL REPORT 2016-17 | 45
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
13. Intangible assets (continued)Intangible assets with a cost greater than
$100,000 are capitalised. Subsequent
expenditure is capitalised when it
increases the future economic benefits
embodied in the specific asset to which
it relates.
Intangible assets are recognised and
carried at cost less accumulated
amortisation and accumulated impairment
losses.
Costs associated with the development
of intangible assets are capitalised and
amortised on a straight-line basis over
its estimated useful life. The cost of
intangible assets includes the cost of
all materials, direct labour, other directly
attributable costs, and an appropriate
proportion of overheads attributable
during development.
Amortisation
Amortisation is recognised on a straight-
line basis over the estimated useful lives
of intangible assets from the date that
they were available for use. The useful
lives of intangible assets are reviewed
annually and adjusted if appropriate.
The estimated useful lives of intangible
assets are:
Class of intangible asset Useful life
(years)
Intellectual property 3
Software purchased 5 - 10
Software internally generated 7 - 10
Other intangibles 10
Impairment
The carrying amounts of TAFE
Queensland’s non-current assets are
reviewed annually to determine whether
there is any indication of impairment.
An impairment loss is recognised if the
carrying amount of an asset or its cash-
generating unit exceeds its estimated
recoverable amount.
Intangible assets are principally assessed
for impairment by reference to the actual
and expected continuing use of the
asset by TAFE Queensland. Recoverable
amount is determined as the higher of
the asset’s fair value less costs to sell and
amortised replacement cost.
14. Payables2017
$'000
2016
$'000
Trade creditors 40,806 36,581
Other creditors 1,522 2,652
Total 42,328 39,233
Trade and other payables represent the value of goods and services provided to TAFE Queensland prior to the end of the
financial year that remain unpaid. Trade and other payables are recognised upon receipt of the goods or services ordered and are
measured at the agreed purchase price less any applicable discounts. Amounts owing are unsecured and are generally settled on
30 day terms.
15. Employee benefits
Accrued salaries and wages 9,685 8,785
Annual leave levy/provision 7,600 11,286
Long service leave levy / provision 1,683 1,882
Total 18,967 21,953
A liability is recognised for benefits accruing to employees for salaries and wages, annual leave, and long service leave when
it is probable that settlement will be required and they are capable of being measured reliably. Current liabilities recognised for
employee benefits expected to be settled within 12 months are measured at their nominal value using current salary and wage
rates and related on-costs.
46 | tafeqld.edu.au
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
17. Commitments for expenditure
Non-cancellable operating lease commitments
Payable:
Not later than one year 4,460 3,879
Later than one year and not later than five years 7,299 6,029
Later than five years 40,138 -
Total 51,897 9,909
Capital Expenditure
Payable:
Not later than one year 5,470 158
Later than one year and not later than five years - -
Later than five years - -
Total 5,470 158
Commitments are inclusive of GST which is not recoverable from the Australian Tax Office.
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases
and are not recognised in TAFE Queensland’s Statement of Financial Position. Operating lease payments are expensed in the
period incurred and are representative of the pattern of benefits derived over the lease term.
Operating leases are entered into as a means of acquiring access to office accommodation, training facilities, and office
equipment. Lease payments are generally fixed, but with inflation escalation clauses upon which future years rentals are
determined.
16. Other current liabilities2017
$'000
2016
$'000
Current
Unearned revenue 39,093 31,715
Payments received in advance 4,536 4,482
Other current liabilities 872 554
Total 44,501 36,751
Unearned revenue is recognised where payments for goods and services are received in advance of TAFE Queensland delivering
the related goods and/or services.
ANNUAL REPORT 2016-17 | 47
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
18. ContingenciesAt 30 June 2017, TAFE Queensland
has 29 active claims with WorkCover
Queensland and 6 claims with the
Queensland Government Insurance Fund
(2015-16: 31 claims with WorkCover
Queensland and 4 claims with the
Queensland Government Insurance
Fund). These claims are not considered to
be material in value.
19. Financial instrumentsCategorisation of financial
instruments
Financial instruments are recognised
initially at fair value when the related
contractual rights or obligations exist.
Subsequent to initial recognition these
financial instruments are measured as
described below.
Financial assets are derecognised
if the contractual rights to the cash
flows from the financial assets expire
or if the financial asset is transferred to
another party without retaining control or
substantially all risks and rewards of the
asset are transferred. Financial liabilities
are derecognised if the obligations
specified in the contract expire or are
discharged or cancelled.
Financial instruments are classified and
measured as follows:
Notes
2017
$'000
2016
$'000
Financial Assets
Cash and cash equivalents 10 216,185 231,196
Receivables (at amortised cost) 11 100,738 82,883
Total Financial Assets 316,923 314,080
Financial Liabilities
Payables (at amortised cost) 14 42,328 39,233
Total Financial Liabilities 42,328 39,233
Financial risk management
TAFE Queensland has an exposure to a variety of financial risks, including credit risk, liquidity risk and market risk.
The TAFE Queensland Board has the overall responsibility for the establishment and oversight of the risk management framework.
The Board established the Audit, Finance and Risk Management Committee, which is responsible fordeveloping and monitoring risk
management policies. The Committee reports regularly to the Board on its activities.
48 | tafeqld.edu.au
Risk Exposure Definition ExposureMeasurement
Method
Risk Management
Strategy
Credit Risk
Credit Risk exposure
refers to the situation
where TAFE Queensland
may incur a financial
loss as a result of
another party to a
financial instrument
failing to discharge their
obligation.
TAFE Queensland is
exposed to credit risk in
respect of its receivables
(Note 11).
The maximum exposure
at balance date is the
gross carrying amount
of receivables inclusive
of any provisions for
impairment.
Ageing analysis,
earnings at risk.
The QTC Cash Capital
Guaranteed Fund is
an asset management
portfolio with
investments in a wide
variety of high credit
rating counterparts.
Deposits are capital
guaranteed. Cash is
held with a regulated
financial institution that
has a credit rating of at
least A+.
Liquidity Risk
Liquidity risk refers to
the situation where
TAFE Queensland may
encounter difficulty in
meeting obligations
associated with financial
liabilities that are settled
by delivering cash or
other financial asset.
TAFE Queensland is
exposed to credit risk in
respect of its payables
(Note 14).
Sensitivity analysis
TAFE Queensland
ensures that minimal
levels of cash are held
within various bank
accounts so as to
match the expected
duration of the various
employee and supplier
liabilities.
Market Risk
The risk that the fair
value or future cash
flows of financial
instrument will fluctuate
because of changes in
market prices. Market
risk comprises three
types of risk: currency
risk, interest rate risk
and other price risk.
Interest rate risk is the
risk that the fair value
or future cash flows of
a financial instrument
will fluctuate because
of changes in market
interest rates.
TAFE Queensland is
exposed to interest rate
risk through its cash
deposited through its
investments with QTC
and cash deposited
in interest bearing
accounts (Note 10).
Interest rate sensitivity
analysis
TAFE Queensland is
exposed to interest rate
risk through its cash
deposited through its
investments with QTC
and cash deposited
in interest bearing
accounts. If interest
rates were to change
by +/- 1% and with
all other variables
held constant, TAFE
Queensland would have
a surplus and equity
increase / (decrease)
of $2.172m ($2.312m
2015-16).
TAFE Queensland
does not undertake
any hedging in relation
to interest risk and
manages its risk as
per the liquidity risk
management strategy.
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
19. Financial instruments (continued) TAFE Queensland measures risk exposure using a variety of methods as follows:
ANNUAL REPORT 2016-17 | 49
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
19. Financial instruments (continued) Aging of past due but not impaired, as well as impaired financial assets are disclosed in the following tables:
Gross
Receivables
Allowance
for
Impairment
Carrying
Amount
Gross
Receivables
Allowance
for
Impairment
Carrying
Amount
Individually impaired
receivables (Aged)
2017
$’000
2017
$’000
2017
$’000
2016
$’000
2016
$’000
2016
$’000
Less than 30 days - - - 12 (10) 2
30 to 60 days - - - - - -
60 to 90 days - - - 1 (1) -
Greater than 90 days 4,002 (4,002) - 3,039 (2,233) 806
Total 4,002 (4,002) - 3,052 (2,244) 808
Ageing of past due
but not impaired receivables
2017
$’000
2016
$’000
Less than 30 days 12 5,716 1,096
30 to 60 days 1,488 711
60 to 90 days 3,263 312
Greater than 90 days 1,675 1,592
Total 12,143 3,711
Fair value
TAFE Queensland has not recognised any financial assets or financial liabilities at fair value, except for cash and cash
equivalents. The fair value of receivables and payables is assumed to approximate the value of the original transaction,
less any allowance for impairment.
50 | tafeqld.edu.au
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
20. Budget vs actual comparison
Statement of Comprehensive Income
Budget
2017
Actual
2017
Variance
2017
Variance
2017
$'000 $'000 $'000 % of Budget
Income
Sales of goods and services 438,283 278,328 (159,955) (36.5%)
Grants and contributions 222,736 396,144 173,408 77.9%
Other revenue 12,823 12,689 (134) (1.0%)
Total Income 673,842 687,161 13,319 2.0%
Expenses
Employee expenses 397,414 397,965 551 0.1%
Supplies and services 238,957 250,239 11,282 4.7%
Grants and subsidies 4,479 1,889 (2,590) (57.8%)
Depreciation and amortisation 12,916 12,013 (903) (7.0%)
Other expenses 3,857 5,093 1,236 32.0%
Total expenses 657,623 667,201 9,578 1.5%
Operating result 16,219 19,960 3,741 23.1%
Other Comprehensive Income
Increase (decrease) in asset revaluation surplus - 58 58 100%
Total comprehensive income - 58 58 100%
Total comprehensive income for the year 16,219 20,018 3,799 23.4%
ANNUAL REPORT 2016-17 | 51
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
20. Budget vs actual comparison (continued)
Explanation of major variances:
Sales of goods and services
The variance against sales of goods and services mainly relates the reclassification of the government
subsidised component of course fees to Grants and contributions ($147.3m).
The remaining variance mainly relates to student fees and charges. Revenues from student fees and charges
are impacted by a number of factors including the number of students, the course studied, the eligibility of
students to receive Queensland government subsidies (with the subsidy component of the fee classified as
a contribution). During the budget process TAFE Queensland splits total estimated revenue from course fees
across the various revenue categories based on historical and current enrolment patterns, factoring in current
TAFE Queensland strategies, targeted growth areas and other relevant impacts from the VET landscape.
In 2016-17, while overall student numbers remained constant TAFE Queensland experienced a 5% drop in the
number of full fee paying students. This had a resulting impact on which category of revenue course fees are
recognised. The 2016-17 budget also targeted a strong growth in international students studying on-shore
which was not achieved.
Grants and contributions
The variance in grants and contributions is mainly due to the reclassification of the government subsidised
component of course fees ($147.3m), receipt of a one off maintenance grant from DET ($5.0m), the recognition
of DET’s contribution towards the fit out of SCHI on behalf of TAFE Queensland ($7.0m), and higher than
budgeted Queensland government subsidised training revenue ($9.4m).
Revenues from Queensland government subsidised training are impacted by a number of factors including
the number of students, the course studied, the eligibility of students to receive a subsidy, and the amount
of the subsidy offered (refer also to note on sales of goods and services above). The increase in Government
subsidised training revenue has also been impacted by strong demand for courses offered under the Rescuing
TAFE program.
Supplies and services
The variance in supplies and services is mainly driven by additional maintenance expenditure relating to the one
off maintenance grant from DET ($4.2m), minor equipment and other project costs relating to SCHI ($1.8m), and
APTC scholarship expenditure original budgeted for under grants and subsidies ($3.9m).
52 | tafeqld.edu.au
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
20. Budget vs actual comparison (continued)
Statement of Financial Position
Budget
2017
Actual
2017
Variance
2017
Variance
2017
$'000 $'000 $'000 % of Budget
Current assets
Cash and cash equivalents 213,615 216,185 2,709 1.2%
Receivables 59,505 100,738 41,233 69.3%
Inventories 517 852 335 64.8%
Other current assets 5,738 8,039 2,301 40.1%
Total current assets 279,375 325,813 46,578 16.6%
Non-current assets
Property, plant and equipment 40,334 42,089 1,755 4.4%
Intangible assets 40,213 28,101 (12,112) (30.1%)
Total non-current assets 80,547 70,190 (10,357) (12.9%)
Total assets 359,922 396,003 36,221 10.0%
Current liabilities
Payables 33,607 42,328 8,861 26.0%
Employee benefits 15,522 18,967 3,445 22.2%
Other current liabilities 36,795 44,501 7,706 20.9%
Total current liabilities 85,924 105,796 20,012 23.1%
Total liabilities 85,924 105,796 20,012 23.1%
Net assets 273,998 290,207 16,209
Equity
Contributed equity 169,040 170,096 1,056 0.6%
Retained earnings 104,958 119,986 15,028 14.3%
Asset revaluation reverse - 125 125
Total equity 273,998 290,207 16,209 5.9%
ANNUAL REPORT 2016-17 | 53
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
20. Budget vs actual comparison (continued)
Explanation of major variances:
Receivables The variance in receivables relates mainly to accrued revenue relating to government subsidised training. In
2015-16 TAFE Queensland commenced recognising receivables for Queensland government subsidised training
revenue for training commenced but not completed as at 30 June. The value of this receivable as at 30 June
2017 is $27.1m.
Changes to state and commonwealth government funding arrangements in the VET sector in recent years have
also resulted in changes to the receivable profile for TAFE Queensland. Some of the changes have resulted in
higher contributions required by students and organisations which has seen an increase in overall receivables
(including students entering payment plan arrangements). This is compounded by state and commonwealth
funding arrangements often resulting in payments occurring in arrears. The 2016-17 budget was set before the
full impact of these changes were understood.
Intangible Assets
The variance in intangible assets is mainly due to timing of the implementation of the new student management
system, and lower than budgeted spend on master product development activities.
Payables Payables have been impacted by a high level of maintenance activity conducted towards the end of the financial
year (predominantly due to additional funding provided by DET) resulting in a higher level of invoices not yet due
for payment and accruals for services provided but not yet invoiced at year end. Accruals relating to a number
of projects as well as the timing of invoicing arrangements under a new ICT support arrangement have also
resulted in an increase in payables at year end.
Other current liabilities
The increase in other current liabilities mainly relates to unearned revenue relating to training in progress or yet to
commence ($7.2m). The amount of unearned revenue recognised at year end is impacted by timing of course
start and completion dates as well as the payment options for the course (e.g. upfront payment, payment
plans).
Retained earning
The variance in retained earnings mainly relates to a prior period adjustment performed in 2015-16 financial
statements relating to the recognition of Queensland government subsidised training revenue for training
commenced but not competed as at 30 June ($14.2m).
54 | tafeqld.edu.au
20. Budget vs actual comparison (continued)
Statement of Cash Flows
Budget
2017
Actual
2017
Variance
2017
Variance
2017
$'000 $'000 $'000 % of Budget
Cash flows from operating activities
Sales of goods and services 448,502 293,420 (155,082) (34.6%)
Grants and contributions 222,736 374,708 151,972 68.2%
GST input tax credits from ATO 19,738 24,260 4,522 22.9%
Interest received 6,101 4,780 (1,321) (21.7%)
Other receipts 6,722 6,640 (82) (1.2%)
Employee expenses (397,280) (401,898) (4,618) 1.2%
Supplies and services (258,724) (268,938) (10,214) 3.9%
Grants and subsidies (4,479) (1,889) 2,590 (57.8%)
GST remitted to ATO (9,177) (11,774) (2,597) 28.3%
Other payments (3,648) (2,414) 1,234 (33.8%)
Net cash provided by (used in)
operating activities30,491 16,896 (13,596) (44.6%)
Cash flows from investing activities
Sales of property, plant and equipment - 50 50 -
Payments for property, plant and equipment (18,000) (13,110) 4,890 (27.2%)
Payments for intangibles (21,179) (18,848) 2,331 (11.0%)
Net cash provided by (used in)
investing activities(39,179) (31,907) 7,272 (18.6%)
Net increase (decrease) in cash and cash equivalents (8,688) (14,872) (6,324) 72.8%
Cash and cash equivalents at beginning of financial year 222,303 231,196 8,893 4.0%
Cash and cash equivalents at end of
financial year213,615 216,185 2,570 1.2%
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
Explanation of major variances (note: refer also to explanations of major variances
for Statement of Comprehensive Income and Statement of Financial Position):
Payments for property, plant and equipment
The decrease in payments for property, plant and equipment mainly relates to a provision for fit outs and
emerging requirements that was not utilised during the year ($3.0m)
Payments for intangibles
The variance in payments for intangible assets mainly relate to a lower than budgeted spend on the
development of master product.
ANNUAL REPORT 2016-17 | 55
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
Details of remuneration for each Board Member are:
2017
Remuneration $
2016
Remuneration $
Annabel Dolphin (from 01/12/16) 30,050 -
Shaun Coffey (from 01/12/16) 21,668 -
Louise Cox (from 01/12/16) 21,668 -
Peter Dowling 38,713 38,194
Noela L’Estrange (from 01/12/16) 21,668 -
Peter Price 21,668 -
Deborah Wilson (from 01/12/16) 39,577 -
Warren Tapp (to 30/11/16) 26,971 60,019
Anita Brown (to 30/11/16) 16,988 38,194
Darrell Butcher (to 30/11/16) 16,962 38,194
Elizabeth Honeycombe (to 30/11/16) 16,988 38,194
Vivienne Mallinson (to 30/11/16) 16,988 38,194
Total 293,909 250,989
21. Key management personnel(a) Ministerial remuneration
As from 2016-17, TAFE Queensland’s
responsible Minister is identified as part
of TAFE Queensland’s Key Management
Personnel (KMP), consistent with
additional guidance included in the
revised version of AASB 124 Related Part Disclosures. That Minister is Yvette D’ath,
Attorney-General and Minister for Justice
and Minister for Training and Skills.
Ministerial remuneration entitlements are
outlined in the Legislative Assembly of
Queensland’s Member’s Remuneration
Handbook. TAFE Queensland does
not bear any cost of remuneration of
Ministers. The majority of Ministerial
entitlements are paid by the Legislative
Assembly, with the remaining entitlements
being provided by Ministerial Services
Branch within the Department of Premier
and Cabinet. As all Ministers are reported
as KMP of the Queensland Government,
aggregate remuneration expenses for all
Ministers is disclosed in the Queensland
General Government and Whole of
Government Consolidated Financial
Statements as from 2016-17, which
are published as part of Queensland
Treasury’s Report on State Finances.
(b) Board Members
On 15 August 2013, the first TAFE
Queensland Board was appointed by the
Queensland Governor-in-Council. Each of
the initial board members were appointed
until 30 November 2016. Current Board
members were appointed on 1 December
2016.
Board Members’ fees include fees paid
for membership of TAFE Queensland’s
Board and relevant Board committees.
In accordance with Queensland
Government policy, as a public sector
employee, Mr Peter Price did not receive
any remuneration as a TAFE Queensland
board member during 2015-16. Following
a change in policy, Mr Price received
remuneration from 1 December 2016.
(c) Board Members’ transactions
A number of the Board Members
hold positions in other entities that
may result in them having control or
significant influence over the financial
or operating policies of those entities.
AASB 124 Related Party Disclosures
requires a range of disclosures about
the remuneration of key management
personnel, transactions with related
parties/entities, and relationships between
parent and controlled entities. TAFE
Queensland has not conducted business
in the 2016-17 financial year with related
parties of any Board Members (2015-16
Nil).
(d) Loans to key management
personnel
None of the key management personnel
have personal loans with TAFE
Queensland outstanding at 30 June
2017.
(e) Key executive management
personnel transactions
Key executive management personnel
of TAFE Queensland or their related
parties conduct transactions with TAFE
Queensland on terms and conditions no
more favourable than those available,
or which might reasonably be expected
to be available, on similar transactions
to non-related entities on an arm’s
length basis.
56 | tafeqld.edu.au
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
21. Key management personnel (continued)(f) Remuneration for key executive
management personnel
Key executive management personnel of
TAFE Queensland are appointed under
the TQ Act. Remuneration and other
terms of employment are formalised
in individual contracts of employment.
These contracts of employment make a
provision for an appropriate combination
of competitive fixed and variable
remuneration components. Remuneration
expenses for key management personnel
comprise the following components:
• Short term employee expenses which
include:
> Salaries, allowances and leave
entitlements earned for the year or
for that part of the year during which
the employee occupied the specified
position.
> Performance payments recognised
as an expense during the year (refer to
Note 21 (g)).
> Non-monetary benefits including
fringe benefits tax applicable to that
benefit.
• Long term employee expenses include
amounts expensed in respect of long
service leave entitlements earned.
• Post-employment expenses include
amounts expensed in respect of
employer superannuation obligations.
• Termination benefits include payments
in lieu of notice on termination and
other lump sum entitlements (excluding
annual and long service leave
entitlements) payable on termination of
employment or acceptance of an offer
of termination of employment.
(g) Performance payments
The variable component of remuneration
is provided to executive managers
through an annual incentive performance
scheme. The scheme is designed to
effectively reward a combination of
key outcomes in excess of meeting
business goals and targets, and
networked leadership behaviours. The
performance payment is contingent upon
TAFE Queensland achieving the Board-
approved operating margin result, and
the individual satisfying the performance
expected in their role. Performance
payments may not exceed a maximum
of twenty per cent of the CEO’s total
remuneration package and fifteen
per cent of all other key management
personnel’s total remuneration package.
Performance assessments occur after
the end of the financial year and consist
of:
• Assessment against both TAFE
Queensland and business unit
measures and targets; and
• Assessment of the individual’s
network leadership behaviours.
These assessments include both peer
assessment and CEO assessments.
Payment of performance bonuses
occurs in the year following actual
performance. As at the date these
statements were certified by
management, the performance
assessment process for 2016-17 was
not yet finalised.
Details of key management personnel
The following details for KMP reflect those positions that had
authority and responsibility for planning, directing and controlling the
activities of TAFE Queensland during 2016-17 and 2015-16.
Position Position Responsibility
Chief Executive OfficerStrategic and operational management of
TAFE Queensland.
Chief Operating OfficerOperational performance and the translation of
organisational strategy into operational plans.
Chief Financial Officer
Financial strategy and planning, financial
systems and reporting functions, financial
policies and procedures, procurement
functions, and the evaluation of investment
decisions.
Chief Information Officer
Information and communications technology
(ICT) strategy development, ICT contract
management and procurement functions and
ICT operational services.
Chief Academic Officer
Academic strategy, teaching governance,
learning and quality, and digital product
services.
Chief Human Resources Officer Strategic Human Resources direction and
delivery of Human Resources services.
Regional General Managers
Directing the activities at TAFE Queensland
campuses in each region in alignment with
TAFE Queensland’s commercial and strategic
direction.
ANNUAL REPORT 2016-17 | 57
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
21.
Key M
anag
em
ent
Pers
onnel (c
ontinued
)The follo
win
g d
isclo
sure
focus o
n t
he e
xp
enses in
curr
ed
by
TA
FE
Queensla
nd
att
rib
uta
ble
to
KM
P d
uring
the r
esp
ective
rep
ort
ing
perio
ds. T
he a
mounts
dis
clo
sed
belo
w a
re d
ete
rmin
ed
on
the s
am
e b
asis
as e
xp
enses r
ecognis
ed
in t
he S
tate
ment
of C
om
pre
hensiv
e Inco
me, w
ith t
he e
xcep
tio
n o
f p
erf
orm
ance p
aym
ents
.
2016-1
7
1.
Raym
ent
of p
erf
orm
ance b
onuses o
ccurs
in t
he y
ear
follo
win
g a
ctu
al p
erf
orm
ance (re
fer
to n
ote
21
(g
)).
In 2
01
6-1
7,
perf
orm
ance p
aym
ents
rela
ting
to
20
15-1
6 t
ota
lling
$3
42
,62
2 w
ere
reco
gnis
ed
. P
aym
ents
were
mad
e o
n t
he 1
6 A
ugust
2016 t
o t
he C
EO
and
on t
he 1
3 S
ep
tem
ber
20
16
fo
r all
oth
er
key
manag
em
ent
pers
onnel (
inclu
ded
in S
ho
rt T
erm
Mo
neta
ry E
mp
loye
e E
xp
enses a
bo
ve).
2.
Rem
unera
tion d
isclo
sed
for
Chie
f Fin
ancia
l Offic
er, C
hie
f A
cad
em
ic O
ffic
er, C
hie
f H
um
an R
eso
urc
es O
ffic
er
and
Genera
l Manag
ers
of B
risb
ane a
nd
Go
ld C
oast
refle
cts
a c
hang
e in
incum
bents
during
the fin
ancia
l year.
Ro
leS
ho
rt T
erm
Em
plo
ye
e
Exp
en
se
sL
on
g T
erm
E
mp
loye
e
Exp
en
se
s
Po
st-
Em
plo
ym
en
t E
xp
en
ses
Term
inati
on
B
en
efits
To
tal
Exp
en
ses
Maxi
mum
P
ote
ntial
Perf
orm
ance
P
aym
ent1
Mo
ne
tary
No
n-
mo
ne
tary
$’0
00
$’0
00
$’0
00
$’0
00
$’0
00
$’0
00
$’0
00
Chie
f E
xecutiv
e O
ffic
er
433
- 9
31
- 473
39
Chie
f O
pera
ting O
ffic
er
249
- 6
33
- 287
20
Chie
f Fin
ancia
l Offic
er
(to 2
7/0
1/1
7)2
Chie
f Fin
ancia
l Offic
er
(fro
m 2
3/0
1/1
7)2
148
108
- -
4
2
23
10
50
-
2
25
120
-
20
Chie
f In
form
atio
n O
ffic
er
248
- 5
30
- 2
82
18
Chie
f A
cad
em
ic O
ffic
er
(to 1
1/1
2/1
6)2
Chie
f A
cad
em
ic O
ffic
er
(fro
m 1
2/1
2/1
6)2
120
150
- -
2
3
12
18
- -
1
34
171
-
23
Chie
f H
um
an R
eso
urc
es
Offic
er
(to 3
0/0
6/1
7)2
Chie
f H
um
an R
eso
urc
es
Offic
er
(fro
m 1
5/5
/17)2
262
28
- -
6
1
33
3
- -
3
00
32
20
-
Genera
l Managers
Brisb
ane (to
28/1
0/1
6)²
146
- 3
14
148
311
-
Brisb
ane (from
24/1
0/1
6)²
179
-4
22
-204
-
East
Coast
259
- 5
32
- 2
96
19
Gold
Coast
(to
11/1
2/1
6)²
136
- 3
16
- 1
56
-
Gold
Coast
(actin
g fro
m 1
6/0
1/1
7 t
o 3
0/0
5/1
7)²
84
-1
8-
94
-
Gold
Coast
(from
29/0
5/1
7)²
19
--
2-
22
-
Nort
h246
1
5
32
- 2
85
20
SkillsT
ech
263
1
6
32
- 3
02
20
South
West
211
14
26
- 242
18
58 | tafeqld.edu.au
1.
Paym
ent
of p
erf
orm
ance b
onuses o
ccurs
in t
he y
ear
follo
win
g a
ctu
al p
erf
orm
ance.
Refe
r to
no
te 2
1 (g
). In 2
01
5-1
6,
perf
orm
ance p
aym
ents
rela
ting
to
20
14
-15
to
talling
$3
58
,80
5 w
ere
mad
e t
o k
ey
managem
ent
pers
onnel o
n 1
9 A
ugust
2015 (in
clu
ded
in S
ho
rt T
erm
Mo
neta
ry E
mp
loye
e E
xp
enses a
bo
ve).
2.
Rem
unera
tion d
isclo
sed
for
Genera
l Manager
of TA
FE
Queensla
nd
So
uth
West
refle
cts
a c
hang
e in
incum
bents
during
the fin
ancia
l year, a
nd
inclu
des p
ayo
ut
to t
he o
utg
oin
g in
cum
bent
of accru
ed
em
plo
yee e
ntitlem
ents
on t
erm
ination.
The o
utg
oin
g in
cum
bent
ceased
em
plo
yment
on 4
Ap
ril 2
01
6.
Ro
leS
ho
rt T
erm
Em
plo
ye
e
Exp
en
se
sL
on
g T
erm
E
mp
loye
e
Exp
en
se
s
Po
st-
Em
plo
ym
en
t E
xp
en
se
s
Term
inati
on
B
en
efits
To
tal
Exp
en
ses
Maxi
mum
P
ote
ntial
Perf
orm
ance
P
aym
ent1
Mo
ne
tary
No
n-
mo
ne
tary
$’0
00
$’0
00
$’0
00
$’0
00
$’0
00
$’0
00
$’0
00
Chie
f E
xecutiv
e O
ffic
er
418
2
9
30
- 463
78
Chie
f O
pera
ting O
ffic
er
260
- 5
32
- 301
39
Chie
f Fin
ancia
l Offic
er
252
-5
31
-292
38
Chie
f In
form
atio
n O
ffic
er
236
-5
29
-274
36
Chie
f A
cad
em
ic O
ffic
er
230
-5
25
-264
36
Chie
f H
um
an R
eso
urc
es
Offic
er
260
- 5
32
- 301
39
Genera
l Managers
Brisb
ane
319
- 7
30
- 356
47
East
Coast
246
- 5
30
- 2
81
37
Gold
Coast
250
- 5
31
- 2
86
37
Nort
h256
- 5
31
- 2
93
38
SkillsT
ech
264
2
6
35
- 3
07
39
South
West
(from
15/0
2/1
6)2
76
-2
10
- 87
-
South
West
(to
4/0
4/1
6)2
338
2-
431
52
415
-
21.
Key M
anag
em
ent
Pers
onnel (c
ontinued
)2015-1
6
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
22. Related party transactionsTransactions with people / entities
related to KMP
Related Party Declarations have been
received from KMP with no material
amounts required to be reported.
Transactions with other Queensland
Government – controlled entities
TAFE Queensland’s primary ongoing
sources of funding from Queensland
Government for its services are grants
and contributions (Note 6) via DET.
TAFE Queensland received a transfer
of $1.3m for plant and equipment and
portable and attractive items at training
sites from DET via Minister D’Ath’s
approval on 5 March 2017.
Transactions with SCHI (joint
arrangement) and TQIE (controlled
entity) are disclosed in Notes 3 and 4
respectively.
23. New and revised
accounting standard
TAFE Queensland did not voluntarily
change any of its accounting policies
during 2016-17.
Australian Accounting Standard AASB 124 Related Party Disclosures has
been adopted for the 2016-17 year as
required by Queensland Treasury. This
accounting standard requires a range of
disclosures about the remuneration of key
management personnel, transactions with
related parties/entities, and relationships
between parent and controlled entities.
The most significant implications of AASB
124 for TAFE Queensland’s financial
statements will be the disclosures to be
made about transactions with related
parties, including transactions with
key management personnel or close
members of their families.
ANNUAL REPORT 2016-17 | 59
24. Future impact of accounting standards not yet effective
At the date of authorisation of the financial report, the expected impacts of new or amended Australian Accounting Standards with
future commencement dates are as set out below.
25. Events occurring after balance date
There were no events or transactions that arose between the end of the financial year and the date of this report that were
of a material or unusual nature that would significantly affect the operations of TAFE Queensland.
Reporting periods
beginning
on / after
AASB 15 Revenue from Contracts with Customers
This standard contains more detailed requirements for the accounting for certain types of revenue
from customers. Depending on the specific contractual terms, the new requirements may
potentially result in a change to the timing of revenue from sales of TAFE Queensland’s goods
and services. TAFE Queensland is yet to complete its analysis of current arrangements for sale
of its goods and services, but at this stage does not expect a significant impact on its present
accounting practices.
1 January 2018
AASB 9
AASB 2014-7
Financial Instruments (December 2014)
Amendments to Australian Accounting Standards arising from AASB 9 (December 2014)
The main impacts of these standards are that they will change the requirements for the
classification, measurement and disclosures associated with financial assets. Under the new
requirements, financial assets will be more simply classified according to whether they are
measured at either amortised cost or fair value. This change is not currently expected to have a
material impact on TAFE Queensland’s financial statements.
1 January 2018
AASB 16 Leases
AASB 16 introduces a single lease accounting model for lessees. Lessees will be required to
recognise a right-of-use asset (representing rights to use the underlying leased asset) and a liability
(representing the present value of lease payments during the lease term that are not yet paid) for all
leases with a term of more than 12 months, unless the underlying assets are of low value.
The right-of-use asset will be initially recognised at cost, consisting of the initial amount of
the associated lease liability, plus any lease payments made to the lessor at or before the
commencement date, less any lease incentive received, the initial estimate of restoration costs
and any initial direct costs incurred by the lessee. The right-of-use asset will give rise to a
depreciation expense.
AASB 16 allows for a choice of transitional accounting methods. TAFE Queensland will await
further guidance from Queensland Treasury on the transitional accounting method to be applied.
TAFE Queensland has not yet quantified the impact on the Statement of Comprehensive Income
or the Statement of Financial Position of applying AASB 16 to its current operating leases,
including the extent of additional disclosure required.
1 January 2019
All other Australian Accounting Standards and interpretations with future commencement dates are either not applicable to TAFE Queensland’s
activities, or have no material impact on TAFE Queensland.
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2017
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MANAGEMENT CERTIFICATEfor the year ended 30 June 2017
These general purpose financial statements have been prepared pursuant to section 62(1) of the Financial Accountability Act 2009 (the Act), relevant sections of the Financial and Performance Management Standard 2009 and other prescribed requirements. In
accordance with section 62(1)(b) of the Act we certify that in our opinion:
(a) the prescribed requirements for establishing and keeping the accounts have been complied with in all material respects;
and
(b) the statements have been drawn up to present a true and fair view, in accordance with the prescribed accounting
standards, of the transactions of TAFE Queensland for the financial year ended 30 June 2017, and of the financial
position of TAFE Queensland at the end of that year.
(c) these assertions are based on an appropriate system of internal controls and risk management processes being effective,
in all material respects, with respect to financial reporting throughout the reporting period.
Annabel Dolphin Jodi Schmidt
Board Chair Chief Executive Officer
TAFE Queensland TAFE Queensland
Date: 23 August 2017 Date: 23 August 2017
Andrew Stuart-Murray
Chief Financial Officer
TAFE Queensland
Date: 23 August 2017
ANNUAL REPORT 2016-17 | 61
INDEPENDENT AUDITOR’S REPORTfor the year ended 30 June 2017
62 | tafeqld.edu.au
ANNUAL REPORT 2016-17 | 63
64 | tafeqld.edu.au
A
Apprenticeship
A system of training, regulated by law
or custom, which combines on-the-
job training and work experience with
formal off-the-job training, while in paid
employment.
Australian Qualifications Framework
A comprehensive nationally-consistent
framework incorporating all qualifications
recognised in post-compulsory education
throughout Australia. The framework
identifies six levels in the VET sector:
Certificate I, Certificate II, Certificate III,
Certificate IV, Diploma and Advanced
Diploma.
B
Back to Work
The Back to Work Regional Employment
Package is a Queensland Government
two-year $150 million initiative designed
to give businesses confidence to employ
regional jobseekers. The program offers
Employer Support and Youth Boost
Payments to employers who meet
program eligibility criteria.
F
Full-time Equivalents (FTEs)
A representative number that is calculated
by assessing the hours worked over the
financial year by all full-time and part-
time employees, and converting this to a
corresponding number of employees as if
all staff were full-time.
H
HECS-HELP
Is a loan scheme to help eligible
Commonwealth supported students to
pay their student contribution amounts
through a loan or upfront discounts.
Before 2005, this was known as ‘HECS’.
I
Information and Communication
Technologies (ICT)
An umbrella term that describes the use
of all technologies in the manipulation and
communication of information.
N
National Partnership Agreement
An agreement between the
Commonwealth and the states and
territories to facilitate coordination,
monitoring and delivery of strategies to
improve service delivery.
R
Registered Training Organisation (RTO)
An organisation registered to deliver and
assess nationally recognised VET.
Rescuing TAFE
The Queensland Government’s Rescuing
TAFE initiative provides funding of $22.8m
over three years from 2015-16 to 2017-
18 to TAFE Queensland. The funding
gives Queenslanders access to more
subsidised training places and greater
learning support at TAFE Queensland
locations across the state. The agreement
deliverables include;
• Investing in student support services;
• Providing foundation skills courses
for disadvantaged learners;
• Increasing courses available under
VET in Schools;
• Expanding and improving regional
support programs;
• Subsidising second chance training
opportunities
• Creating new full time equivalent
positions.
S
Strategic Plan
The document provides TAFE
Queensland’s purpose and direction.
It outlines overall objectives (including
contributions to whole-of-government
objectives, ambitions and targets)
and how it will know if it has achieved
those agency objectives (performance
indicators).
U
Unique Student
A unique student is a term used to count
physical students across a particular
metric.
User Choice
The User Choice program provides a
public funding contribution towards
the cost of training and assessment for
eligible Queensland apprentices and
trainees.
The program provides the flexibility for
apprentices, trainees and their employers
to select a preferred RTO from a list
of pre-qualified suppliers (PQS) for the
delivery of accredited training to meet
their specific needs.
V
VET FEE-HELP (VFH)
VET FEE HELP is an income contingent
loan scheme available to assist eligible
students studying higher level VET
qualifications to pay their tuition fees.
Higher level VET qualifications are at the
diploma level and above.
VET in Schools (VETiS)
A funding program administered by the
DET designed to assist Queensland
school students to acquire skills and
knowledge required for specific industries
as part of their school studies.
VET Student Loans (VSL)
The VET Student Loans program is an
income contingent loan offered by the
Australian Government that helps eligible
students pay for some VET diploma
level or above courses. VET Student
Loans commenced on 1 January 2017,
replacing the VFH scheme, which ceased
on 31 December 2016.
Vocational Education and Training
(VET)
Post-compulsory education and training
which provides people with occupational
or work-related knowledge and skills.
GLOSSARY OF TERMS
ANNUAL REPORT 2016-17 | 65
Acronyms and Abbreviations
A
AQF Australian Quality Framework
D
DET Department of Education and Training
F
FTE Full-Time Equivalent
I
ICT Information and Communication Technology
K
KMP Key Management Personnel
R
RTO Registered Training Organisation
S
SMS Student Management System
T
TQ ACT TAFE Queensland Act 2013
V
VET Vocational, Education and Training
VSL VET Student Loans
VFH VET FEE-HELP
VETiS VET in Schools
66 | tafeqld.edu.au
Published by:TAFE Queensland Level 14, 133 Mary Street, Brisbane QLD 4000 PO BOX 16100, CITY EAST QLD 4001 Phone: +61 7 3514 3600 Fax: +61 7 3514 3650 www.tafeqld.edu.au
Providing feedbackWe continually strive to meet best practice reporting standards and value the views of our readers. We invite your comments via the whole-of-government feedback survey available at: www.qld.gov.au/annualreportfeedback