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CONSTRUCTION 1r
TRA?NING FUNI) Jl
BUILDING AND CONSTRUCTION
INDUSTRY TRAINING BOARD
ANNUAL REPORT
2014-2015
STATEMENT OF COMPLIANCE
To the Hon Liza Harvey MLA, Minister for Police; Road Safety; Training andWorkforce Development; Women's Interests.
In accordance with Section 63 of the Financial Management Act 2006, l havepleasure in submitting for your information and presentation to Parliament the AnnualReport of the Building and Construction Industry Training Board for the financial year
d d 30? J 20lgene une .
(
llan C Hill
Chairman
BCIT Board
%
OVERVIEW
This report describes the function and operations of the Building and ConstructionIndustry Training Board and Fund, outlining outputs, financial results andrf- ad' f h dd30?J 20l5Tha d la lpeormanceinicatorsorteyearene une . isanearierannua
reports are available on the Training Fund's website at bcitf.org.
Building and Construction Industry Training Boardtrading as Construction Training Fund
Suite 3, 40 Hasler RoadOsborne Park WA 6017
PO Box 743
Wembley WA 691308 9244 0100 (P)08 9244 0199 (F)
inquiries@,bcitf.orgbcitf.org
nolimits.com.au
CONTENTS
STATEMENT OF COMPLIANCE
ABOUT THE CONSTRUCTION TRAINING FUND ............................................................... 1
PERFORMANCE HIGHLIGHTS 2014-15 ............................................................................. 2
CHAIRMAN'S OVERVIEW.............................. ........................... ................ ... ................. 3
ORGANISATIONAL STRUCTURE ................................. ........... ................ .. .................... 7
AGENCY PERFORMANCE.................................................................................................. 8
APPRENTICESHIP / TRAINEESH?P SUPPORT PROGRAM............................................. 12
SUPPLEMENTARY SKILLS AND OCCUPATIONAL SAFETY AND HEALTH .................... 14
CAREER PROMOTION AND SCHOOL TO WORK TRANSITION SUPPORT ................... 16
RESEARCH AND DEVELOPMENT PROGRAM ................................................................ 19
INDUSTRY TRAINING COUNCIL....................................................................................... 21
PLANNED OPERATIONS FOR 2015-16 ............................................................................ 23
PERFORMANCE MANAGEMENT FRAMEWORK ............................................................. 25
STATUTORY AND OBLIGATORY REPORTING................................................................ 26
AUDITOR GENERAL'S REPORT
CERTIFICATION OF KEY PERFORMANCE INDICATORS
CERTIF?CATION OF FINANCIAL STATEMENTS
FINANCIAL STATEMENTS FOR YEAR ENDED 30 JUNE 2015
ABOUT THE CONSTRUCTION TRAIN?NG FUND
Who we are
The Construction Training Fund is a statutory authority that assists Western Australia'sbuilding and construction industry to meet its demands for skilled workers.
The Fund is managed by a Board of industry representatives and an independentChairperson. Members of the Building and Construction Industry Training Board areappointed by the Minister for Training and Workforce Development.
A small team of 20 staff service the Fund which is based in Osborne Park. We work veryclosely with stakeholders in the building and construction industry, registered trainingproviders, local government agencies, secondary schools, the Department of Training andWorkforce Development and the State Training Board.
What we do
The Fund administers a Ievy on building and construction work in Western Australia, with theexception of engineering construction associated with the resources sector.
The revenue generated from the levy is then returned to the industry's employers andworkers in a range of grants and subsidies that reduce costs associated with skills trainingrequired by a modern and progressive building and construction industry.
The Board also carries out the role of a Construction Training Council, which works closelywith industry stakeholders and provides advice to Government to ensure that training meetsthe needs of one of WA's biggest and most diverse industries.
Values
The Building and Construction Industry Training Board and Fund are committed to providingreliable, efficient and effective services to our internal and external customers.
The standards of conduct and integrity expectedemployees are expressed in the following principles.
of the Board members and Fund
* Personal Integrity
We act with care and diligence and make decisions that are honest, fair, impartial, andtimely and consider all relevant information.
Relationships with others
We treat people with respect, courtesy and sensitivity and recognise their interests,rights, safety and welfare.
Accountability
We use the resources of the Fund in a responsible and accountable manner thatensures the efficient, effective and appropriate use of human, natural, financial andphysical resources, property and information.
The Construction Training Fund ensures these values are demonstrated in a commitmentthat our customers will be treated professionally, courteously and with appropriatesensitivity. Consideration will be given to their concerns and interests and stakeholders willbe consulted regarding significant changes in our processes and systems.
1
PERFORMANCE HIGHLIGHTS 2014-15
Significant results have been achieved in training by the construction industry with 2014seeing the highest number of apprentices in training on record.
The construction industry has had a 1 9% increase in apprentice commencements in the pasttwelve months which follows a 24% increase in the previous 12 months. The ConstructionTraining Fund responded to significant growth in the residential construction sector withincreased financial subsidies which helped to keep skill shortages to minimal Ievels.
Training support outcomes
Program
Apprentice subsidies
Bonus apprentice subsidies
Skills training subsidies
OS&H training subsidies
Number supported
6,546
1,287
11 ,350
8,900
Funding allocated
$19.4 million
$4.2 million
$3.7 million
$1 .3 million
New initiatives
Funding support implemented for:
M Awareness training in depression and suicide.
a Awareness training in abuse of alcohol and drugs.
s Employment of women in apprenticeships and traineeships, and scholarships for youngwomen entering the industry.
Career information and school support
w 142,000 visits to No Limits and BCITF information websites.
w 2,500 school students supported in school to work transition.
m 700 school students funded to undertake VET secondary schools programs.
m 158 career presentations and expos undertaken.
Research / Construction Training Council
s Research completed into the impact of modular construction techniques.
w Facilitated a solution to problems associated with implementation of competency basedwage progressl0n.
w Facilitated the implementation of a new pre-apprenticeship model.
Administration costs
$2.3 million - 6.6% of total expenditure.
2
CHAIRMAN'S OVERVIEW
2014-15 a year of wide variations in construction industry activity
The substantial reduction in resource industry infrastructure construction continued duringthe year and had a flow on effect in the economy generally. Despite this, the residentialconstruction sector experienced continued substantial growth achieving over 30,000 dwellingcommencements for the year.
By comparison, the commercial and civil construction sectors remained subdued and thesepeaks and troughs in activity were reflected in both the Construction Training Fund'srevenue and expenditure patterns.
Despite this volatility the Board has been able to monitor industry activity, predict trends andas a result set budgets accordingly. The revenue achieved for the year of $35. 1 million was$291 ,000 over the budget of $34.8 million. Expenditure of $34.3 million was $662,000 underthe budget of $35 million.
Training support programs
The implementation of bonus subsidies of up to $4,000 to encourage employment ofadditional apprentices was a significant success.
The Construction Training Fund expended $23.7 million in financial support for employmentof apprentices. The industry responded with a 19% increase in apprentice commencementsduring the year and the most number of apprentices in training on record.
Importantly, at a time of unprecedented activity in the residential sector of the industry therewere relatively few delays caused by skill shortages.
Industry skills and occupational safety and health training numbers increased slightly overallwith indications that there are still already skilled workers returning to the industry fromprojects in the north west which are completing their construction phase.
There has been pleasing growth in the number of VET secondary school studentsundertaking the new construction industry pathways programs and the Fund has fundedover 700 student enrolments during the financial year.
New career information centre
The Board's decision to expand its school support and career information program throughestablishment of a career information centre has progressed with the Board currently in theprocess of purchasing a property in Belgravia Street, Belmont.
The !ndus?rY employs nearlV 11 % of fMe State workforce and oVer 40% of all appren?!ces bufstill struggles to attract enough school leavers with the aptitude and basic skills to meet itsrecruitment needs.
The career information centre in the form of a scitech for the construction industry will be acatalyst for greater and more positive interest by students, teachers and parents aboutcareers in construction
The Board plans to construct a purpose built facility to enable the delivery of careerinformation services which will also service the Construction Training Fund's accommodationneeds. The commissioning of the facility is planned for the first quarter of 2017.
3
CHAIRMAN'S OVERVIEW
Review of the Construction Training Fund
In June 2014 a review of the effectiveness of the Board and the Construction Training Fundwas undertaken and subsequently submitted to Parliament.
The review identified strong industry support for the Board and acknowledgement that theFund makes a significant contribution to the training of individuals and the supply of skilledworkers for all sectors of the industry.
A number of suggestions were made to improve the effectiveness of the Building andConstruction Industry Training Fund and Levy Collection Act 1990 which have either beenimplemented through administrative changes or are being progressed through proposedamendments to legislation.
BOARD STRUCTURE
The Building and Construction Industry Training Board is a body corporate which isresponsible for the administration of the training levy and operations of the ConstructionTraining Fund.
The Board has seven members appointed by the Minister for Training and WorkforceDevelopment. During the year three existing members were reappointed for a period ofthree years expiring in June 2018 and a new member was appointed with a term expiring inJune 2016.
BOARD MEMBER PROFILES
Mr lan Hill, Chairman
Mr Hill has a career spanning over 30 years in the State Public Sector. During this time MrHill has been employed as Chief Executive Officer of the Department of Corrective Servicesand Director General of the WA Department of Training and Employment.
Mr Hill currently chairs the Building and Construction Industry Training Board and theTraining Accreditation Council.
Mrs Susan Bailey
Mrs Bailey possesses 34 years' experience in the housing construction industry, whichincludes serving as past President of the Housing Industry Association (WA / Asia) andrecent experience as a senior executive of the HomestarUJCorp organisation.
Mr Maxwell Rivett
Mr Rivett has been Director / Partner of Cooper and Oxley Builders Pty Ltd where he hasworked since 1974. Mr Rivett has been a past president of the Master Builders' Associationand Director of Master Builders Australia Incorporated.
4
CHAIRMAN'S OVERVIEW
Mr Les Wellington
Mr Wellington has been employed as Chief Executive Officer of the Construction SkillsTraining Centre in Welshpool since 1998. Prior to this employment Mr Wellington wasemployed for a number of years as a union official with the Construction, Forestry, Miningand Energy Union of WA.
Ms Kathleen Soumanis
Ms Soumanis is the Human Resources Manager - lnfrastructure North West with the JohnHolland Group. Ms Soumanis has held human resource management roles in several largeorganisations over the past 20 years and has been employed with the John Holland Groupsince 2008.
Mr Mick Unger
Mr Unger is General Manager lnfrastructure with Ertech Pty Ltd, a civil contracting company.
Mr Unger has worked in the construction industry for 15 years and is Branch President of theCivil Contractors Federation WA and a member of the Kimberley Training InstituteGoverning Council.
Mr Les McLaughlan
Mr McLaughlan is the State Secretary of the Electrical Trades Union (ETU); a position hehas held since 2006. Previously he has worked in the union as an organiser, and as anelectrician in Western Australia since 1978. Mr McLaughlan resigned on 10 March 2015 aswork commitments prevented him from participating as a Board member.
Mr Gregory Wilton
Mr Gregory Wilton was appointed as a Board member to fill the position previously held byMr McLaughlan. Mr Wilton has been employed in the electrical contracting industry in anumber of states and is currently employed as a Trainer and Assessor. He is also amember of the Trades Recognition Australia WA Electrical Committee and the WA ElectricalLicensing Board.
BOARD ACTMTIES
During the year the Board met on nine occasions. Members also participated in an annualstrategic planning workshop with approximately 40 industry stakeholders in March 2015,which assisted the Board to set priorities and strategic program objectives for the future.
A number of issues of strategic importance to the construction industry were dealt withduring the year including competency based wage progression and prevocational trainingincluding pre-apprenticeship and VET secondary schools programs.
s
CHAIRMAN'S OVERVIEW
Acknowledgements
The Board relies on four advisory committees to provide advice and information about keytraining and workforce development issues. These committees are:
* Construction Industry Strategic Group.
Construction Industry Working Group.
* Construction Training Delivery Group.
* Career Promotion Committee.
Each committee or group meet to provide input to training and workforce development in theindustry and Construction Training Fund programs. This includes the work undertaken bythe Board in its capacity as an industry training council dealing with workforce developmentissues. The participation of voluntary representatives on these committees is greatlyappreciated.
During the year Mr Les McLaughlan resigned from the Board due to work commitments andhis replacement was arranged as part of the process of appointment of members whoseterm of appointment expired in June 2015.
Three Board members, namely Mrs Sue Bailey, Mr Les Wellington and Mr Max Rivett werereappointed by the Minister with terms expiring in June 2018. Mr Gregory Wilton wasappointed as a new member to replace Mr McLaughlan and his term of appointment expiresin June 2016.
My appreciation is extended to all the Board members for their expertise and commitmentwhich continues to be reflected in the very positive achievements of the ConstructionTraining Fund.
During the year the Board had the pleasure of working with the Hon Dr Kim Hames MLA,Deputy Premier, Minister for Health; Training and Workforce Development. Following aportfolio change in December 2014, the Board now reports to the Hon Liza Harvey MLA,Minister for Police; Road Safety; Training and Workforce Development; Women's Interests.A strong working relationship has been established with the Minister and her staff which isappreciated.
The Board also acknowledges the close working relationship that the Fund has with theDepartment of Training and Workforce Development and the State Training Board.
Collectively these people make a vital contribution to the work and success of theConstruction Training Fund and they are sincerely thanked for their support.
Finally the Board wishes to acknowledge the very strong efforts and results achieved by theExecutive Director and his team at the Construction Training Fund. Their contribution isgreatly appreciated.
??l'-:m'AA
%>
:?
lan C Hill
Chairman
Building and Construction lndustiy Training Board
6
ORGAN?SATIONAL STRUCTURE
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BUllDlNa & CONSTRUCTION INDUSTRY TRAlNlNa BOARD
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SENIOR OFFICERS
Mr Ralph Dawson - Executive Director
Mr Dawson has held the position of Executive Director since September 2003.
He has approximately 48 years' experience in the State Public Sector including extensiveexperience in senior management roles in vocational education and training.
Mr Alan Davis - Director Skills Development
Mr Davis has been employed by the Construction Training Fund since 2009.
He has over 27 years' experience in the delivery and management of vocational educationand training programs.
Mr Eamon Moore - Director Communications and Operations
Mr Moore has been employed within the Construction Training Fund since 2004 and has 17years' experience in the education sector.
7
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AGENCY PERFORMANCE
Income of $35. 1 million was $291 ,000 or O.8% over the $34.8 million budgeted in the 2014-15 0perational Plan.
Training Fund Revenue - $millions (including levy and other income)
40.033,8
34.9 35.1
35.0
30.0
25.0
20.0
is.o
io.o
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2010/11 2011/12 2012/13 2013/14 2014/15 2014/15Budget Actual
34.8
Industry Sector Revenue
56.0%
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50.0%
40.0%30.1% 30.0%
J Il30.0%
'16'.?6%'13.0% l
I 2.4%1.0%
JResources Industry
20.0%
rl
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Commercial Housing
-2013/14 m 2014/15
Residential dwelling commencements again increased during the year reaching recordlevels. Commercial construction was consistent but subdued compared to peaks two yearsago. Civil construction reduced marginally with these changes all reflected in levy collectionlevels.
10.0%
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Engineering
8
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AGENCY PERFORMANCE
Expenditure Results
Annual expenditure
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30.0
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15.0
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Budget
2014/15Actual
Expenditure of $34.3 million was $662,000 below budget but still $3.1 million more thanspent in 2013-14.
In addition to the recurrent budget $6 million was allocated for capital expenditure to supportacquisition of a property for the proposed career information centre. This expenditure wasnot incurred despite an exhaustive search, as a suitable property was not identified until laterin the financial year. A property in Belmont has been selected and an offer to purchaseaccepted with settlement to take placed in September 2015.
9
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AGENCY PERFORMANCE
Legislative Changes
No changes were made to the Building and Construction Industry Training Fund and LevyCollection Act or the regulations during the year. However the Building and ConstructionIndustry Training Fund and Levy Collection Amendment Bill 2015 was tabled in Parliament inJune 2015.
The Bill proposes to make the following amendments:
* Changing the objectives of the Iegislation by removing reference to supporting animprovement in the quality of training and replacing it with promotion and facilitation oftraining.
* Giving the Building and Construction Industry Training Board formal responsibility toprovide advice to the Minister for Training and Workforce Development on employmentissues relating to the construction industry.
@ Shifting provisions for establishment of a threshold level relating to application of thetraining levy on variations in the value of construction after completion of work from theAct to the Regulations.
Administrative changes and activities
lalVew Onllne revy application and payment systei
A new electronic levy application and payment system was developed and implemented inearly 2014. The system which enables project owners to submit information relating toprojects directly to the Construction Training Fund electronically and to make payment of thelevy by credit card, electronic funds transfer or cheque has been very popular withcustomers. From a small beginning, over 3,300 transactions have been processed duringthe 2014-15 financial year using the online application. This represents approximately 8% ofthe 39,000 transactions processed during the year.
Changes to support programs
Program subsidies have remained unchanged.
* The bonus subsidy of up to $4,000 per apprentice was continued and has seensignificant results with substantial increases in apprentice commencements.
* Funding has been provided to support delivery of vocational education and training inschools programs for approximately 700 students.
* The career information and school support program continues to expand to respond togrowth in demand.
@ Funding support introduced to support scholarships for young women entering theconstruction industry and for employers recruiting women in apprenticeships andtraineeships. This is a new initiative implemented by the Minister for Training andWorkforce Development
11
APPRENT?CESHIP / TRAINEESHIP SUPPORT PROGRAM
Support for employers
a Employers are paid a subsidy depending on the term of indenture to support theemployment of apprentices. A new differential funding model was introduced during2013-14, with the base grant for most construction trades raised from $9,000 to$10,000. In addition "trade bonus" incentives of up to $4,000 for employers encourageemployment of apprentices in critical trade shortage areas. These subsidies havecontinued during 2014-15 with strong results. In the past twelve months there has beena 19% increase in apprentice commencements and there are currently 8,400apprentices in training, the highest on record.
a Additional supplements of up to 20% of the base grant are paid to employers ofregionally based apprentices and 30% of the base grant is paid to employers ofAboriginal apprentices.
Outcomes
€ During the year, there was a 19% increase in apprentice commencements withapprentices in training increasing by approximately 6%. There are currently over 8,400apprentices in training (including electrical), the highest number on record.
a Whilst the total number of base subsidies was almost identical to 2013-14 the 1,287bonus subsidies provided represents a 1 34% increase on last year.
€ These bonus subsidies were successful in achieving substantial increases in recruitmentof wet trades apprentices which were trades in high demand in the industry.
€ The following data details the number of subsidies and support payments providedtogether with the expenditure incurred.
Number Expenditure
a Direct indenture apprentices 4,667# $14,461,000
a Group training apprentices "1,879# $4,904,000
€ Bonus trade and other subsidies 1,287 $3,637,000
a Accommodation allowance 19 $4,000
€ Scholarships or bursaries 1,064 $600,000
a Indigenous bonus 45 $r34,000
TOTALS 6,546# $23,740,000
"Average per month (bonus subsidies shown in base figures) total base subsidies.
12
APPRENTICESHIP / TRAINEESHIP SUPPORT PROGRAM
As an example, between 2012 and 2014 bricklaying trade apprentice commencementsincreased by 229%, concreting by 960%, plastering by 79%, wall and ceiling fixing by 38%and wall and floor tiling by 23%. By comparison electrical apprenticeship commencementsdecreased by 7%.
The Construction Training Fund expended $23.7 million on apprentice support during theyear which was $3 million more than in 2013-14.
History of apprentice subsidies provided
7,000
6,000
s,ooo
4,000
3,000
2,000
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5,175
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072009/10 2010/11 2011/12 2012/13 2013/14 2014/15
Recognition of prior Iearning (RPL)
During the year, the Construction Training Fund provided 43 subsidies at a cost of $16,150to support existing construction industry workers to gain trade qualifications and recognition.
13
SUPPLEMENTARY SKILLS AND OCCUPATIONAL SAFETY AND
HEALTH
a To maintain the skill Ievels required in WA's construction industry, the ConstructionTraining Fund provides subsidies to industry workers who complete short trainingcourses enabling them to perform their tasks effectively and safely.
a The Fund supports more than 200 short training courses delivered by registered trainingproviders.
a The subsidy available to eligible workers attending training in metropolitan areas iscalculated on an hourly rate of $29 per hour of training or 70% of the course cost,whichever is the lower amount. The maximum subsidy available per trainee per courseis$1,100.
a For training delivered in regional Western Australia, the subsidy is calculated at $32 perhour of training or 80% of the course cost, whichever is Iower. The maximum subsidyavailable per trainee per course is $1 ,300.
Higher qualifications
a The Construction Training Fund supports industry workers that complete Certificate IVqualifications in Occupational Safety and Health, Builder's Registration and ProjectManagement. This year the Fund provided 92 subsidies for these higher qualifications,with an expenditure of $102,000.
Outcomes
Number Expenditure
a Supplementary skills 11 ,350 $3,657,000
a Occupational safety and health 8,916 $'r ,300,000
TOTALS 20,266 $4,957,000
The 20,266 supplementary skills and occupational safety and health subsidies provided in2014-15 was 10% higher than Iast year. Although skills training remained Iow bycomparison with previous years, occupational safety and health training increasedsignificantly.
New initiatives
During the year funding support was introduced to enable "Mates in Construction" to deliverawareness training to workers in the industry about the problems associated with depressionand suicide.
Similar support has been provided for workers undertaking awareness training in abuse ofalcohol and drugs which is a program being delivered by the Holyoake organisation.
14
SUPPLEMENTARY SKILLS AND OCCUPATIONAL SAFETY ANDHEALTH
History of workers subsidised to undertake supplementary skills training
25,000
1Q78120i365
20,00016,279
lll
18,075
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15,000
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2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
History of workers subsidised to undertake occupational safety and healthtraining
14,0001 1,936 12,211
11,547
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2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
15
CAREER PROMOTION AND SCHOOL TO WORK TRANS?TION
SUPPORT
The key objective of the Career Promotion Program is to raise awareness within thecommunity of the unlimited career opportunities which are available in the constructionindustry, particularly for school students who are considering their career options.
What we do
Promotions and field services
m Two websites - bcitf.org for information about the Construction Training Fund supportnolimits.com.au for information on careers.
s Comprehensive campaign advertising in TV, radio, press and digital media, promotingcareers in the industry.
m Advertising in industry publications promoting the Training Fund's support programs.
w Information brochures on support programs and careers.
w Attendance at public, industry and school-based careers expos and industry forums.
m Funding industry-based awards for excellence in training.
w Visits to employers of new apprentices on construction sites to provide information andguidance.
Schools2Skills
m Funding of school-to-work transition initiatives.
s Liaison with district and regional Department of Education, Catholic Education andIndependent Schools to promote VET in Schools courses and training.
m In-school presentations to students and educators about career opportunities.
W Promotion of VET in Schools qualifications to secondary students, parents andeducators.
s Funding VET in Schools programs related to construction.
s Supporting students to meet the cost of personal protective equipment for site-basedwork experience.
s Funding scholarships for students who complete VET in Schools and pre-apprenticeshipqualifications.
The delivery costs of VET in Schools programs are funded by Government, however, since2013-14, the Board has provided funding for delivery of new construction VET in Schoolsqualifications, where demand for these qualifications may exceed funding allocated byGovernment. This funding commitment by the Board continued throughout 2014-15 and willcease at the end of the 2016 calendar year.
16
CAREER PROMOTION AND SCHOOL TO WORK TRANSITIONSUPPORT
Outcomes
s Funded 1,738 Year 10 students to complete Try-a-Trade courses, an increase of 45%over20l3-14.
a Provided $150 to 796 Year 11 and 12 students in VET in Schools constructionqualifications for PPE, an increase of 32%.
a For the 2014-15 year, the Construction Training Fund funded delivery of training for 374students in VET in Schools qualifications between July - December 2014 and 517students between January-July 2015 for a total expenditure of $759,898. Thisrepresents a 138% increase in enrolments.
m Funded 172 pre-apprenticeship scholarships - a decrease of 31 %
m Delivered 158 school-based presentations to students and career expos - a 9%increase.
a 585 visits to employers of new apprentices and trainees
a 142,022 visits to the Training Fund's websites - a decrease of 5%.
Industry stakeholders place a high value on the field services provided by the ConstructionTraining Fund's Training Suppoit Officers. During 2014-15, the Construction Training Fundemployed a fourth Training Support Officer, enabling growth in the Schools2Skills careerpromotion program and continuing services to employers of new apprentices and trainees.
The decrease in the number of pre-apprenticeship scholarships provided in 2014-15 is areflection of the overall decrease in the number of post-school enrolments in such coursesdue to the rise in the school leaving age to 17 and the high number of secondary studentsenrolled in VET in schools qualifications.
The Construction Training Fund expended $3,008,000 on the CareerPromotion/School to work transition program in 2014-15 which represents 8.7% oftotal expenditure.
l
l'1l l?'l!IL?
l%ol0nlku tmng lhaat9 $ tltlF} 10 'r61J Itu}in@ts xnd
'?lmgwusgt'wnikxbu:klvzwscosyirua=n?hb:o. !?zuis *hy vm ?xiiux*= iiawhnq pum grcnabx up lo M?sai.?:nirmssvauioryuca-ivx+moimini*meh ?xmmm'riunmnks ?'#""=?-'-IJ.-h-.- ThMl@W!l@iMi'mraWM!Th*gb??'Y.vslmFxA.Nqukdla?440!m 6F- ArYKal'l l 1%,#.
'J('a?' ?" Xa f[:?' !. #
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r
%-
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!'illJ,,,Nil}N.,,,..,=...:,,,,::,.,.. lyy&I- '- . 1. . 'i
)!? ?r'
lk11
J
17
CAREER PROMOTION AND SCHOOL TO WORK TRANSITIONSUPPORT
Students supported
s,ooo 4,069
4,000 l2,616
3,000
l 1,805l
2,000l
ll
I l
1,000r
II
l
o T 'I' 1
2010/11 2011/12 2012/13 2013/14 2014/15
Note: Does not include approximately 750 students funded to undertake VET in School construction pathways course in2014-15.
Website visits
The Fund received approximately "149,474 visits to its information websites in 2013-14.
99,513
ioo,oooia oan 74.'i34
ri' l ? 1 ? '
67,899V 66,46780,000 J 61,470 7
@ai ? !a i60,000
40,000
20,000
i rr
rIll
l
ll
l
l
llllll
o T' v r l
2010/11 2011/12 2012/13 2013/14 2014/15
No Limits Website m Construction Training Fund Website
School presentations and careers expos
149
2010/11 2011/12 2012/13 2013/14 2014/15
' Metropolitan N Regional
2,534
?4 mlelw
1,-/35'
18
RESEARCH AND DEVELOPMENT PROGRAM
During the past year, the Construction Training Fund's Research and Development branchhas contributed to the bi-monthly Construction Industry Snapshots, Annual Key PerformanceIndicators and also focused on the following key research programs.
The Impact and Effectiveness of Targeted Funding for VET in SchoolsPrograms in Construction
Financial support for VET in Schools was provided by the Fund during 201 3-15 and remainsin place until December 2016. The funding supports delivery of the new VET in Schools,Certificate 11 Building and Construction programs. This provided funding to 24% of allConstruction VET in Schools enrolments and 44% of the new Pathways programs.
There was significant growth of 290% in programs supported by the Fund.Ofl ,652 enrolments in Construction programs in 2014, more than 900 were in the Pathwayprograms.
The Impact on the Retention of Students in School until Year 12 on the numberof Pre-apprentices and Apprentices entering the Industry
This project will be completed in July 2015. It investigated the perception that the change inschool leaving age caused lower apprenticeship, traineeship and pre-apprenticeship intakes.
Initial findings are that the changes have not affected the Construction Industry, especiallygiven the strong promotional activity undertaken by the Fund. In addition, the number ofschool students undertaking Certificate 11 in Building and Construction has significantlyincreased and continues to provide graduates for entry into a career in Construction.
The Impact of Subsidies on Employer Decisions to Recruit Apprentices andTrainees
This research established the use of subsidies has a positive influence on employers'decisions to employ apprentices and trainees. This is consistent across States with trainingfunds, showing higher completion rates and training rates over the Iast ten years.
The use of bonus subsidies provided by the Fund supported a significant increase inapprentice commencements and 'in training' numbers in all trades that received bonussubsidies. In trades that received a smaller bonus, the increase in numbers was smaller andin those that did not receive a bonus remained strong compared to other industries wherethe numbers of apprentices declined. Over 71% of respondents identified "subsidies hadinfluenced their decision to employ".
The Impact of New Technologies on the Residential Construction Sector
This project concentrated on the impact of Modular construction on the Residential HousingSector, including any changes to the composition of the workforce. The research identifieda number of impacts that new technology and alternative construction methods will have. Itwas established that:
*
*
*
Modular home builders are accessing adequate numbers of skilled workers from thecurrent workforce; therefore, there is no immediate need for additional subsidy support.
Given build time, affordability and raw material shortages, it is predicted this sector ofindustry could grow by 1 00% (an additional 900 homes) per year over the next s years.
This growth will be an integral part of dwelling commencements rather than in addition tothe total build in WA.
* It was identified there was a need for up-skilling and cross skilling in the future. Therewas no identified requirement for new or modified trade qualifications at this time.
19
RESEARCH AND DEVELOPMENT PROGRAM
Suspension and Attrition Rates of Apprentices 2007- 2014
This research identified the difference in attrition and suspension rates of apprenticesemployed through Group Training Organisations (GTO) and those employed under directindenture with an employer.
Despite an overall increase in apprentices 'in training' there has been a 38% decline in thenumber of apprentices employed by GTOs since 2007. The reduction from 38. 1% of totalmarket share in 2007 to 25.6% in 2015 was identified as a concern.
The higher suspension rates within GTOs and the impact this may have on the number ofapprentices Ieaving the industry was also identified as a concern.
Investigate Opportunities for Changes to Off-the-Job Training in the WAApprenticeship System
This research examined stakeholder concerns regarding quality and validity of apprenticeassessment in the VET system. A number of issues were identified, including:
* Dissatisfaction with the lack of communication and involvement between the
employer and the training provider, and lack of faith in relevant training content andassessment methods.
* Dissatisfaction with the duplication of on and off-the-job training effort and trainingplans that did not meet the off-the-job scheduling needs of employers.
* Lack of on-site and final assessment of competency.
It was identified that there is a strong appetite for review and improvement of the currentapprenticeship training arrangements and models of delivery. Following further consultationwith key industry stakeholders in March 2015, the BCIT Board approved research into thefeasibility of a new model of apprenticeship training during 2015-16.
Copies of all significant research projects undertaken by the Construction Training Fund areavailable on the Fund's bcitf.org website.
20
INDUSTRY TRAINING COUNCIL
Over the past 12 months, the Building and Construction Industry Training Board (BCITBoard) in its capacity as the Construction Training Council has provided advice toGovernment and the Department of Training and Workforce Development (Dn/VD) ontraining issues of strategic importance to the industry.
Key industry stakeholders have participated in the Construction Industry Strategic Group andIndustry Working Group and provided valuable input to:
The Construction Industry Workforce Development Plan.
Implementation of VET in Schools plumbing pathway for entry into the ConstructionIndustry.
Support for the development of learning resources for the VET Secondary Schools tradepathway in conjunction with WestOne Services (DTWD) and Polytechnic West.
Competency Based Wage Progression and the regulation change under the VET Act.
Advice to the DTWD related to the State Priority Occupation List (SPOL).
Consultation and advice on key changes to training packages at State and national Ieveland on accreditation and re-accreditation of State-based courses.
Advice to the State Training Board, Training Accreditation Council (TAC) and DTWD onissues including the VET in Schools approved qualifications register, Strategic IndustryAudit (VET in Schools) and changes to the State pre-apprenticeship system.
A comprehensive Industry Workforce Development Plan was revised and submitted to theDTI/VD. The plan made five key and twenty-six specific recommendations that relate to sixindustry specific areas of interest.
Following implementation of the VET Secondary Schools trade and para-professionalpathways, the Certificate 11 Civil Construction and Certificate 11 in Plumbing (52700WA)Pathways were developed.
With agreement from the DTWD, seven existing construction trade pre-apprenticeships werereplaced by the VET Secondary Schools programs.
Following successful completion of Iearning resources for the Certificate 11 para-professionalpathway, learning resources for the Certificate 11 trade pathway qualification have beendeveloped. The Year 11 common core resources for all trade streams have beencompleted. The Carpentry and Joinery resources for Year 12 are now complete for use by allRTOs.
a
a
a
a
€
€
a
During 2014-15, the Training Council produced bi-monthly 'lndustry Snapshot' reports thatprovide industry stakeholders, DTWD, the State Training Board and Industry Skills Councilswith a summary of the status of the industry using specific performance indicators. Theindicators are based on Australian Bureau of Statistics, Construction Forecasting Counciland other key providers of statistical information and trends.
Number Employed - Construction Industry Western Australia
The following graph shows the 'annualised average growth' of employment in theConstruction Industry over the Iast 10 years to May 2015, which now employs 10.75% of theState Workforce.
In the year to May 2015, the industry experienced an overall growth of 22,060 (+16.2%)workers employed in the industry. Contributing to this growth was an increase in full-timeemploymenf ofl4,800 (+ 12.3%) and an !ncrease !n part-time of 7,300 (+45.9%).
The Housing sector has mirrored the above and continued to grow and strongly contributedfo a 1 2.5% growtM !n full-?!me pos!f!ons. Confr!buf!ng f0 fh!s growth was an increase of 46%in part-time employment and 12% in full-time employment.
21
INDUSTRY TRA?NING COUNCIL
Employed in Western Australian construction industry(OOO's) - Annualised average
160.00
140.00
120.00
ioo.oo
80.00
so.oo
40.00
20.00
T -r T l T'
141.03
v
148.16
?
7
l
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
The annualised growth in the industry is at a higher rate than all industries combined. In thepast 10 years, while the construction industry workforce has increased by 43%, the WesternAustralian workforce has increased by 30%.
Apprentices 'in training' over past 10 years
The Construction Industry has a reliance on apprenticeships to help meet skills demand andemploys approximately 45% of all apprentices, including electrical, in WA. The followinggraph shows the growth of construction apprenticeships over the past 10 years.
g,ooo
s,ooo
7,000
6,000
5,000
4,000
3,000
2,000
i,ooo
8,449.=i -ira 7 ')'il 7,%'i ?
? ? a 7,500 7,421 7,432 aa? ? 7-1o8 ? ? m m ?
JT
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
As at April (including Electricians)
The 'training rate', which is the apprentice to tradesperson ratio, is currently 11 .5% and whenthis includes trainees is 12.7%. This compares favourably with the 'all other industries'average of approximately 8.0%.
' Due to data collection methodology change, the end of April 2015 is the latest data available.
22
Ml sMl m m m lm'm wl m
s m ml m s m m m ml mm m ml m m m m m ml mm m ml m s m m m ml mm m ml m s m m m ml mm m ml m s m m m ml m0101010101W i i01
s m lMl m wl m m Ws m m ml m ml m m mm m m ml m ml m m mm m m ml m ml m m mm m m ml m ml m m mm m m ml m ml m m mm m m ml m ml m m mW 010101W W 010101
PLANNED OPERATIONS FOR 2015-16
Summary
The Construction Training Fund finished the year with an operating surplus of $632,000 andnet assets of $18.5 million.
The operational plan for 2015-16 maintains existing subsidy programs however, there will bechanges to apprentice subsidy allocations including:
Cessation of bonus subsidies for building trades.
* Introduction of a mature age bonus payment for employers who employ new apprenticesaged 21 or above.
* Introduction of a number of new supplementary skills and occupational safety and healthsubsidies including:
Licensing course training for plumbers, electricians and painters.
Cabling for electronic communications courses.
* Funding of Certificate IV and above Ievel courses on completion of a unit or module oftraining rather than the full qualification.
These changes will result in additional support for workers undertaking short trainingcourses.
Career information centre
During 2014 the Fund conducted an exhaustive search for properties in commercial / Iightindustrial areas of the metropolitan area which would be suitable for establishment of theproposed career information centre and Fund offices. $6 million in capital expenditure hadbeen built into the 2014-15 financial year budget but not expended as a suitable propertywas not identified until late 2014. This property in Belgravia Street, Belmont has nowundergone a due diligence investigation and is about to be purchased for $3.475 million.Settlement on the property takes place in September 2015.
In the meantime the Fund has contracted consultants and architects to design the necessarybuildings. Contracts will be Iet for construction which is planned for commencement inDecember 2015. The planned commissioning of the facility is scheduled for the first quarterof 2017. The total cost of the project is estimated at $8.5 million including purchase of theproperty.
23
PLANNED OPERATIONS FOR 2015-16
The Minister for Police; Road Safety; Training and Workforce Development; Women'sInterests, the Hon Liza Harvey MLA, approved the Construction Training Fund's OperationalPlan for 2015-16in June 2015. Below is a summary of the plan:
Operational Plan-I July 2015 to 30 June 2016
Note: Current assets reduce from $18.6 million to $12.6 million. Net equity includes valueof property and improvements.
24
i'- 'JWl Wr
11 ffiWmw
i !M, :!ml m m m m m
DPi
kn&l k fi E fi € a u
J ':md
Levy income - general
Other income
Interest income
TOTAL INCOME
33 800
615
620
35,035
32,400
470
350
33,220
m -Apprentice & Trainee Programs
Group training schemes
Direct indenture
Other bonuses and support
Program Total
4 900
14600
4310
23,810
4 600
14100
2,565
21,265
Supplementary Skills Program
Construction skills
lndustry skills
Program Total
3100
310
3,410
3 570
490
4,060
Safety & Health Program 1,140 1,780
Career Promotion/Schools2Skills Transition 3,000 3,200
Research & Development/lndustry Support Programs
Training Advisory Services
300
5'l5
320
470
Construction Training Fund Administration 2,000 2,075
Total Recurrent Expenditure 34,175 33,170
Capital Expenditure (including depreciation) 256 6,100
TOTALEXPENDITURE 34,355lsm s s
]q9Rp[i[N[!3L'%a i 11immJ iiisg iimcun Bm j:)
b immmm
PERFORMANCE MANAGEMENT FRAMEWORK
Government Goal(s)
m Building strategic infrastructure that will create jobs and underpin Western Australia'slong term economic development.
Agency level Government desired outcomes
w Construction Training Fund programs support an increase in the number of personsin the building and construction industry with the skills required to meet the industry'sworkforce needs.
s Construction Training Fund programs support an improvement in the quality oftraining for the construction industry.
The West Australian Construction Industry contributes approximately 11 % of the Gross StateProduct and employs approximately 10.8% of the State's workforce, which includesapproximately 45% of the State's apprentice workforce.
The Construction Training Fund provides financial support to both employers and workers inthe industry to employ and train apprentices and to undertake skills enhancement and OS&Htraining. During 2014-15 the Construction Training Fund has provided training support inone form or another for approximately 30,000 people which is 21% of the constructionindustry's workforce subject to the Ievy.
This support contributes to the productivity of the industry and ultimately, the economicperformance of the State.
Services
Financial support to employers for employment of apprentices.*
Financial support to workers for skills and occupational safety and health training.*
Research into training and competency levels.*
Provision of career information and support for school to work transition programs.*
25
STATUTORY AND OBLIGATORY REPORTING
Legislation impacting on the Building and Construction Industry TrainingBoard's activities
In the performance of its functions, the Building and Construction Industry Training Boardcomplies with the following relevant written laws:
The Building and Construction Industry Training Board, has complied with the requirementsof the Financial Management Act 2006 and every other relevant written law. It has exercisedcontrols which provide reasonable assurance that the receipt and expenditure of moneys,the acquisition and disposal of public property and incurring of Iiabilities have been inaccordance with legislative provisions.
At the date of signing, the Board is not aware of any circumstances which would render theparticulars included in this statement misleading or inaccurate.
Publications
The following publications are produced by the Building and Construction Industry TrainingBoard and are available on request:
These documents are all available on the Training Fund's ? or nolimits.com.auwebsites.
26
a Auditor General Act 2006 a lndustrial Relations Act 1979 (EmploymentAct)
a Building Act 2011 a MinimumconditionsofEmploymentAct1993
' Building and Construction lndustryTraining Fund and Levy CollectionActl990
a Occupational Safety and Health Act 1984
a DisabilityServicesActl993 ' Public Sector Management Act 1994
' EqualOpportunityActl984 a State Records Act 2000
a Financial Management Act 2006 a StateSupplyCommissionActl99l
a FreedomoflnformationActl992 a Statutory Corporations (Liability of Directors)Act1996
' Annual Report ' Quarterly Newsletter
' Career information booklets ' Training subsidy pamphlets
' Program information on website: ' Career information on website: nolimits.com.au
' Bi-monthly Construction lndustry Snapshot ' Formal research reports
STATUTORY AND OBLIGATORY REPORTING
Contracts with senior officers
At the date of reporting, other than normal contracts of employment of service, no Boardmembers or senior officers or firms of which members or senior officers are members, orentities in which members or senior officers have substantial interests, had any interests inexisting or proposed contracts with the Building and Construction Industry Training Board.
Ministerial Directives
The Building and Construction Industry Training Fund and Levy Collection Act 1990 providesfor the Minister to approve the Building and Construction Industry Training Board'sOperational Plan for the forthcoming year.
The Minister approved the 2014-15 0perational Plan in June 2014. No further ministerialdirectives were issued.
Legislative review
Section 32(1) of the Building and Construction Industry Training Fund and Levy CollectionAct 1990 requires the Minister to conduct a review of the effectiveness of the Act and theBoard every s years.
The Minister initiated such a review which was undertaken by an independent chairpersonand steering committee of industry representatives. The review was completed in June2014 and submitted to the Minister for consideration.
Staff Development
The Building and Construction Industry Training Board is committed to the personaldevelopment of its employees.
The sum of $21,450.51 was spent on staff development in 2014-15. New staff undertakeappropriate induction training and existing staff undertake training in accordance with theConstruction Training Fund's needs and their personal development requirements.
Major Promotional, Public Relations or Marketing Activities
The Construction Training Fund administered a Career Promotion and Marketing Programduring the year to raise awareness of career opportunities within the building andconstruction industry.
The Fund also promoted the availability of financial subsidies to industry and used variousmedia and marketing strategies including the following information web sites:
?
nolimits.com.au
27
STATUTORY AND OBLIGATORY REPORTING
The following information complies with section 1 75ZE of the Electoral Act 1907 and detailsexpenditure in advertising, market research, polling, direct mail and media advertising:
Pricing Policies on Services
The Construction Training Fund does not charge any fees for services it renders, however,the Board entered into a contract with the Department of Training and WorkforceDevelopment to deliver training advisory services for the construction industry. The contractfor thea period under review is valued -at $523,000 for delivery of services- until 30'h June2015.
Insurance Premiums paid to indemnify members of the Board
A Directors and Officers Iiability insurance policy was taken out to indemnify members of theBuilding and Construction Industry Training Board against any liability incurred inundertaking their responsibilities. The amount of the insurance premium in 2014-15 was$6,140.
Freedom of Information
The Construction Training Fund has published and maintained information statements in theform of hard copy pamphlets and information on its ? website enabling people toaccess information about programs, policies and procedures. Procedures are in place torespond to applications under the Freedom of Information Act 1992. No applications werereceived during the year under review.
28
Total expenditure for 2014-15 was $723,632.25
Agency Expenditure Agency
HIA - Building News
Expenditure
$ e,oro.ooVinten Browning $ 310.00
Branch Media 5 6,975.00 Gate Crasher $ 99,629.92
Business Promotions Aust $ 4,952.02
$ s ooo.oo
$ 11,715.00
Times Publishing $ 4,500.00
Ma5ter PlumberS & GaSfiterS $ 4,180.00Construction Worker
Master Painters & Decorators 5 eeo.ooCrowther Blayne
Dowd Publications $ 3 990.00 WA Building News $ 1,475.00
Civil Contractors' Federation $ 2,666.00
Total $152,062.94
Polling Organisations nil
Direct Mail Organisations nil
Media Advertising Organisations $571,569.31
Carat Australia Media Services $571 ,569.31
STATUTORY AND OBLIGATORY REPORTING
Occupational Safety, Health and Injury Management
The Construction Training Fund is committed to providing a safe and healthy workenvironment for all staff and visitors. The Fund's goal is to have a workplace that is freefrom work-related injuries and diseases by developing and implementing safe systems ofwork and by continuing to identify hazards and to control risks as far as practicable.
The Fund promotes a consultative environment in which management, staff and otherstakeholders work together to continually improve occupational safety and health practices.Formal mechanisms for consultation with employees on occupational safety and healthmatters include:
A standing agenda item on management and staff meetings;
Maintenance of Occupational Safety and Health policy as part of the Fund's HumanResources Management processes as detailed in the Human Resources Manual;
Identification of health and safety risks and monitoring by management and staff;
Dissemination of information and discussion at staff meetings
Dissemination of information and monitoring at management meetings
The Construction Training Fund's Human Resource Manual includes a policy on injurymanagement, which was developed in accordance with the Workers' Compensation andlnjuty Management Act 1981.
Occupational Safety and Health policies and processes are documented in the Fund'sHuman Resources Manual provided to all staff and forming part of the induction for all newstaff and are used as a reference by all staff.
The policies were recently reviewed as part of a general review of the Construction TrainingFund's Human Resources Manual. The Fund has an employee assistance program inplace. There were no compensation claims processed during the year.
The Construction Training Fund's Occupational Safety and Health statistics for 2014-15 areshown below:
*
*
*
*
*
*
29
Occupational Safety and Health Statistics 2014-15 Target 2014-15 Actual
Number of fatalities o o
Lost time injury / diseases (LTI/D) incidence rate o o
Lost time injury severity rate o o
Percentage of injured workers returned to work within(i) 13 weeks; (ii) 26 weeks
Greater than or
equal to 80% within26 weeks
N/A
Percentage of managers and supervisors trained inoccupational safety, health and injury managementresponsibilities
Greater than or
equal to 60%60%
STATUTORY AND OBLIGATORY REPORTING
Disability Access and Inclusion Plan
The Construction Training Fund is a non SES organisation which does not fall within thejurisdiction of the Disability Services Act 1993.
However the Fund has voluntarily adopted the Disability Access and Inclusion Plan (DAIP)objectives which are built into its human resources plan.
Recordkeeping Plans
Records Management Framework
The Construction Training Fund is committed to maintaining record keeping practicesconsistent with the State Records Act 2000. The current Record Keeping Plan wasreviewed in 2013 and approved by the State Records Commission for five years in March2014 and has approval for continuation until March 2019.
Evaluation and Review of Efficiency and Effectiveness of Systems
During 2014-15 the Construction Training Fund's record keeping processes were reviewedand some processes updated.
Offsite Storage and Disposal
The Construction Training Fund continues to maintain an offsite storage facility for thestorage of all "significant" records for the duration of their retention. A regular disposalprogram is undertaken to ensure ongoing on-site storage capacity.
Electronic Records Management
All incoming, outgoing and significant internal documents are being saved electronically intothe Electronic Records Management System.
Induction and Training
New staff are informed of their roles and responsibilities for records management as part ofthe Fund's induction program manual. The Human Resources Manual provides detailedinformation for staff relating to a wide range of human resource practices and obligationsincluding Code of Conduct, Recruitment, Managing Performance, Occupational Safety andHealth and employee relations. Sections of the manual have been reviewed and updated asrequired.
Sustainability Code of Practice
As a non SES organisation, the Construction Training Fund is not required to maintain aSustainability Action Plan, however, the Fund continues to apply the principles set out in thecode as part of good governance of the Fund. This includes:
Strategic planning is based on assessment of longer term needs of the building andconstruction industry and involves objectives and strategies that ensure the maximumeffectiveness and the long term sustainability of Fund resources;
Agency operations and use of resources support sustainability principles;
Staff are encouraged to make the most effective use of recycled paper products and tominimise light and power usage;
The Construction Training Fund has responded to new training programs in the buildingand construction industry relating to sustainable building practices by providing trainingsubsidies.
s
tut
s
m
30
STATUTORY AND OBLIGATORY REPORTING
Compliance with Public Sector Standards and Ethical Codes
Action to monitor and ensure compliance with Western Australian Public SectorStandards
Managers and staff are required to comply with the Public Sector Standards in HumanResources Management. Monitoring provisions include:
*
For recruitment, selection and appointment, a review of each process is undertaken priorto the final decision to ensure compliance with the Employment Standard;
A monitoring process to ensure there are current performance management processesin place for all employees.
Compliance issues
Internal reviews have shown compliance with the Standards is achieved before any finaldecision is made. No claims for breach of standards have been made during the year.
Action to monitor and ensure compliance with Western Australian Public Sector Codeof Ethics
The Code of Ethics is available in the Construction Training Fund's Human ResourcesManual which is available in the electronic records systems and is part of the induction fornew staff. The Code of Ethics is reinforced as part of personal performance managementprocesses. Regular information is provided to staff together with relevant training andreferences made in job descriptions. The Code of Ethics was reviewed during the year.
Compliance issues
There has been no evidence of non-compliance with the Public Sector Code of Ethics.
Action to monitor and ensure compliance with Construction Training Fund Code ofConduct
The Construction Training Fund's Code of Conduct Iinks the corporate values with expectedstandards of personal conduct. All staff, contractors and consultants who carry out work for,or on behalf of, the Fund are required to comply with the spirit of the Code of Conduct whichhas the premise that all staff accept personal responsibility for their behaviour. The Code ofConduct was reviewed during the year.
Compliance issues
There has been no evidence of non-compliance with the Construction Training Fund's Codeof Conduct. The Fund Executive has a Public Interest Disclosure Policy and supportsdisclosures being made by staff. The Executive Director will take all reasonable steps toprovide protection to staff who make such disclosures from any detrimental action in reprisalfor making public interest disclosure. The Fund provides guidelines to staff wishing to makesuch disclosures. In 2014-15 there vvere no public interest disclosures about the activities ofthe Fund or issues raised about breaches of the Code of Conduct.
Corporate Governance Framework
The Construction Training Fund's governance framework is based on the Public SectorCommissioner's Good Governance guide. The Board undertook a review of its performanceagainst the guide during the previous financial year and undertook some CorporateGovernance training during the year to meet the development needs of members.
31
STATUTORY AND OBLIGATORY REPORTING
Government and Public Sector relationships
The Building and Construction Industry Training Board is the corporate entity prescribedunder the Building and Construction Industry Training Fund and Levy Collection Act 1990 asresponsible for administration of the Construction Training Fund.
Management and oversight
Delegations from the Board to the Executive Director are documented to give the ExecutiveDirector responsibility for the day to day operations of the Construction Training Fund. Thedelegations were updated following a review by the Board during 2014.
Policies and guidelines are in place to support decision making and communications withexternal customers and stakeholders. These include governance, information technology,human resources, finance and procurement. The policies and guidelines are available tostaff through the Construction Training Fund's Human Resources Manual and through theinternal records managements system.
The Building and Construction Industry Training Board produces an annual strategic planand an operational plan which is required to be approved by the Minister for Training andWorkforce Development. The plan establishes revenue and expenditure estimates, programexpenditure and targeted outcomes for the forthcoming financial year.
The plan is consistent with the Construction Training Fund's legislative objectives and withpriorities set by the Board following consultation with industry stakeholders.
Organisational structure
Decision making responsibilities in accordance with the approved operational plan rest withthe Executive Director and the executive team of the Construction Training Fund.
The organisational structure supports the delivery of Construction Training Fund programs.Each year the structure and individual positions are reviewed and changes implemented ifnecessary to ensure good governance and maintenance of a skilled and motivatedworkforce.
Operations
The Board meets regularly and receives monthly reports detailing program and financialperformance against the operational plan targets.
Reviews of the effectiveness of programs and financial results are undertaken regularly tosupport Board decision making when it is necessary to make adjustments.
People
The Construction Training Fund works to attract, develop and retain a skilled and valuedworkforce with a culture that supports high quality, responsive and efficient services; and totreat people professionally, courteously and with appropriate sensitivity.
The Fund has a human resources policy framework covering flexible work arrangements,staff development, study assistance and occupational safety and health.
32
STATUTORY AND OBLIGATORY REPORTING
Other disclosures and legal compliance
Finance
The Construction Training Fund produces an annual budget, by program and division, whichis approved by the Corporate Executive to ensure that it is line with the strategic direction ofthe Fund. Financial integrity and accountability is secured through reporting to CorporateExecutive and the Board every month.
The Fund has documented Financial Management processes, designed to assist employeesto perform their tasks efficiently and effectively. These manuals ensure disruptions tooperations are minimised as a result of staff changes. The processes are consistent withrelevant Treasurer's Instructions and State Supply Commission policies.
External auditors conduct an annual internal audit of financial management to ensure thatfinancial processes, policies and controls are in place and consistent with the requirementsof the Financial Management Act 2006.
Communication
To ensure services are accessible, open and responsive, the Construction Training Fundcommunicates with its key stakeholders using a range of communication methods. Thisincludes planning workshops with stakeholders, industry information forums and written andelectronic surveys to obtain feedback on specific issues.
Fortnightly staff meetings and executive team meetings enable sharing of informationinternally and the opportunity for staff to contribute to decision making.
Policies covering record keeping, record management and communications are in place toensure the confidentiality and integrity of information, preventing unauthorised or falsedisclosure.
Risk management
The Construction Training Fund identifies and manages its risk through a Risk ManagementPlan that has been created following consultation with Risk Cover. A new plan created in2011-12 was reviewed and updated regularly. The Iast review was conducted in February2015. The plan includes actions required to maintain business continuity.
Under the Risk Management Plan, controls have been identified for significant risks and anyaction required is assigned to a relevant member of Corporate Executive. Progress on theseactions is monitored through reporting to Corporate Executive.
33
STATUTORY AND OBLIGATORY REPORTING
Construction Training Fund staff profile
IFull Time Full Time Part Time TOTALFTE l
Permanent Contract Permanent r18.0 1 1 @ .66 FTE 18.66
19.0?.ol 1 1 @ .66FTE 19.8
2013-14
2014-15
AS at 30 June 2C)15
34
&Auditor General
INDEPENDENT AUDITOR'S REPORT
To the Parliament of Western Australia
BUILDiNG AND CONSTRUCTION INDUSTRY TRAIN?NG BOARD
Report on the Financial Statementsl have audited the accounts and financial statements of the Building and Construction IndustryTraining Board.
The financial statements comprise the Statemerit of Financial Position as at 30 June 2C)15, theStatement of Comprehensive Income, Statement of Changes in Equity and Statement of CashFlows for the year then ended, and Notes comprising a summary of significant accountingpolicies and other explanatory information.
Board's Responsibility for the Financial StatementsThe Board is responsible for keeping proper accounts, and the preparation and fair presentationof the financial statements in accordance with Australian Accounting Standards and theTreasurer's Instructions, and for such internal control as the Board determines is necessary toenable the preparation of financial statements that are free from material misstatement, whetherdue to fraud or error.
Auditor's ResponsibilityAs required by the Auditor General Act 2006, my responsibility is to express an opinion on thefinancial statements based on my audit. The audit was conducted in accordance with AustralianAuditing Standards. Those Standards require compliance with relevant ethical requirementsretating to audit engagements and that the audit be planned and performed to obtain reasonableassurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financia! statements. The procedures selected depend on the auditor'sjudgement, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorcorisiders internal control relevant to the Board's preparation and fair presentation of the financialstatements in order to design audit procedures that are appropriate in the circumstances. Anaudit also includes evaluating the appropriateness of the accounting policies used and thereasonableness of accounting estimates made by the Board, as well as evaluating the overallpresentation of the financial statements.
l believe that the audit evidence obtained is sufficient and appropriate to provide a basis for myaudit opinion.
OpinionIn my opinion, the financial statements are based on proper accounts and present fairly, in allmaterial respects, the financial position of the Building and Construction Industry Training Boardat 30 June 2015 and its financial performance and cash flows for the year then ended. They arein accordance with Australian Accounting Standards and the Treasurer's Instructions.
Page 1 of 3
7th Floor Albert Facey House 469 Wellington Street Perih MAIL TO: Perth BC PO Box 8489 Perth WA 6849 TEL: 08 6557 7500 FAX. 08 6557 7600
Report on Controlsl have audited the controls exercised by the Building and Construction Industry Training Boardduring the year ended 30 June 2015.
Controls exercised by the Building and Construction Industry Training Board are those policiesand procedures established by the Board to ensure that the receipt, expenditure and investmentof money, the acquisition and disposal of property, and the incurring of Iiabilities have been inaccordance with legislative provisions.
Board's Responsibility for ControlsThe Board is responsible for maintaining an adequate system of internal control to ensure thatthe receipt, expenditure and investment of money, the acquisition and disposal of public andother property, and the incurring of liabilities are in accordance with the Financial ManagementAct 2006 and the Treasurer's Instructions, and other relevant written Iaw.
Auditor's ResponsibilityAs required by the Auditor General Act 2006, my responsibitity is to express an opinion on thecontrots exercised by the Building and Construction Industry Training Board based on my auditconducted in accordance with Australian Auditing and Assurance Standards.
An audit involves performing procedures to obtain audit evidence about the adequacy of controlsto ensure that the Board complies with the legistative provisions. The procedures selecteddepend on the auditor's judgement and include an evaluation of the design and implementationof relevant controls.
l believe that the audit evidence obtained is sufficient and appropriate to provide a basis for myaudit opinion.
OpinionIn my opinion, the controls exercised by the Building and Construction Industry Training Boardare sufficiently adequate to provide reasonable assurance that the receipt, expenditure andinvestment of money, the acquisition and disposal of property, and the incurring of liabilities havebeen in accordance with legislative provisions during the year ended 30 June 2015.
Report on the Key Performance Indicatorsl have audited the key performance indicators of the Building and Construction Industry TrainingBoard for the year ended 30 June 2015.
The key performance indicators are the key effectiveness indicators and the key efficiencyindicators that provide information on outcome achievement and service provision.
Board's Responsibility for the Key Petformance IndicatorsThe Board is responsible for the preparation and fair presentation of the key performanceindicators in accordance with the Financial Management Act 2006 and the Treasurer'sInstructions and for such controls as the Board determines necessary to ensure that the keyperformance indicators fairly represent indicated performance.
Auditor's ResponsibilityAs required by the Auditor General Act 2006, my responsibility is to express an opinion on thekey performance indicators based on my audit conducted in accordance with Australian Auditingand Assurance Standards.
Page 2 of 3
An audit involves performing procedures to obtain audit evidence about the key performanceindicators. The procedures selected depend on the auditor's judgement, including theassessment of the risks of material misstatement of the key performance indicators. In makingthese risk assessments the auditor considers internal control relevant to the Board's preparationand fair presentation of the key performance indicators in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating the relevance andappropriateness of the key performance indicators for measuring the extent of outcomeachievement and service provision.
l believe that the audit evidence obtained is sufficient and appropriate to provide a basis for myaudit opinion.
OpinionIn my opinion, the key performance indicators of the Building and Construction Industry TrainingBoard are relevant and appropriate to assist users to assess the Board's performance and fairlyrepresent indicated performance for the year ended 30 June 2015.
Independencetn conducting this audit, l have complied with the independence requirements of the AuditorGeneral Act 2006 and Australian Auditing and Assurance Standards, and other relevant ethicalrequirements.
Matters Relating to the Electronic Publication of the Audited Financial Statements andKey Performance IndicatorsThis auditor's report relates to the financial statements and key performance indicators of theBuilding and Construction Industry Trairiing Board for the year ended 30 June 2015 included onthe Board's website. The Board's management are responsible for the integrity of the Board'swebsite. This audit does not provide assurance on the integrity of the Board's website. Theauditor's report refers only to the financial statements and key performance indicators describedabove. It does not provide an opinion on any other information which may have been hyperlinkedto/from these financial statements or key performance indicators. If users of the financialstatements and key performance indicators are concerned with the inherent risks arising frompublication on a website, they are advised to refer to the hard copy of the audited financialstatements and key performance indicators to confirm the information contained in this websiteversion of the financial statements and key performance indicators.
DON CuNNINGHAME
ASSISTANT AUDITOR GENERAL FINANCIAL AUDIT
Delegate of the Auditor General for Western AustraliaPerth, Western Australia17 August 2015
Page 3 of 3
BU?LDING AND CONSTRUCTION INDUSTRY TRA?NING BOARDNotes to the Financial Statements
For the year ended 30 June 2015
CERT?FICATION OF PERFORMANCE IND?CATORS
We hereby certify that the Performance Indicators are based on proper records, arerelevant and appropriate for assisting users to assess the Board's performance andfairly represent the performance of the Building and Construction lridustry TrainingBoard for the financial year ended 30 June 2015.
,0+
' '?
[
,io /.q />lan Hill
Chairman
For the BCIT Board
Date
'c/g/€ oSue BaileyBoard Member
For the BCIT Board
Date
,faa ?,r ..?'f%
'l- A'
?%
?t,,[a? ':.a">r?l;a'3r
4 i!, ) %7-%:-,,.,-..,v i!. } ! 7
il
. l-
"r. ...f
William Buck Audit (WA) Pty Lttl1
BUILDING AND CONSTRUCTIONINDUSTRY TRANING BOARD
Performance lndicators
For the year ended 30 June 2015
KEY PERFORMANCE IND?CATORS
Mission
i@The demands of the building and construction industry for skilled workers aresupported"
s
Govecnrnent goa!(s)
W Building strategic infrastructure that will create jobs and underpin Western Australia's Iong termeconomic development.
Agency !eve! Gevecngnenf des:red outcome(s)
m
m
The Construction Training Fund's programs support an increase in the number of persons in thebuilding and construction industry with the skills required to meet the Industry's workforce needs.
The Construction Training Fund's programs support an improvement in the quality of training forthe construction industry.
Outcorrve !- Prograrns support an :ncrease in ski!!ed workers :n the industry
KPI 1.1 "The number of apprentices and trainees employed in the Building andConstruction lndustty as a percentage of the trade workforce in the industr5r."
l Number of al entices and trainees 20.fi
*-,lQ, i 2012-1:! lApprentices and trainees in training(includes electricians)
Source: Department of Training and Workforce Development '
Nu-tuber-ofidespeople?- ---Tradespeople in industry (includes electricians)Source: ABS2
*Ti r.&ll
9,347 8,322 8,374
2014-15 l 'in<'i'ial-%i l %I-l '!l 2012-13 -l
73,500 i 62,375 65,000
i
Training Rate3Source: Derived
l ;aota-ts l 2013-14 2012-13 l
1 2.7% 1 3.3% 1 2.9%
The training rate has dropped to 12.7% from 13.3% even though there has been 11% growth inta-th a f11125d lah tAl20l5aTFl=happrenices, erewasanincreaseo , traespeopeinteyearo pri . isiste
highest number of tradespeople in the industry in over 10 years. This increase in tradespeople isdue to the increase in activity in the overall construction sector including higher dwellingcommencement rates and the number of workers returning from the resources sector.
National research based on age distribution in the workforce has confirmed that industry needs totrain at a training rate of 1 5% in order to replace tradespeople leaving the industry through normalcircumstances such as retirement. The training rate is the percentage of active apprentices andtrainees compared to employed tradespeople in the industry.
The apprentice training rate for "all other lndustries" is approximately 8.0%.
A significant number of total workers are still employed in engineering construction in the resourcessector on the construction phase of projects where apprentice employment is limited and theConstruction Training Fund Ievy does not apply.
:Australian bureau of Statistics, Labour Force, 6291 .0.55.003 - Australia, Detailed, Quatterly May 2015. Training Rate in Outcome 1 is the ratio of apprentices to tradespeoplea Due to 'data collection lag this is latest available TRS data as at April 2015
KEY PERFORMANCE INDICATORS
KPI 1.2 "The number of people supportpd to undertake supplementar5r skills andoccupational safefi and health training or skills assessment as a percentage of thetotal workforce in the building and construction industr37."
Number of Peoplp ?????l20l4-15 2013-14Workers in industry trained withConstruction Training Fund support
2012-13 lAQij:-l
18,355 i 26,63920,530Source: CTF
l Number of workersNumber of workers in the industry" (actualemployed at end ofApril 2015)Source: ABS4
- zois-i* ', zoiz-i:i l
126,528 i 110,008 i 99,923
Percentaqe
Training ratesSource: Derived
Target I?
7 1 6.23%
2013-14 '}fl4'l 4'!ztnz-l,j j?
16.67% ? l 27%
Note: All percentages are rounded up or down to the nearest whole numberThe above figures do not include apprentice subsidies which am pard directly to employers of the apprentice.
The 'training rate' in KPI 1.2 shows a comparable level to 20'l3-14. However, the number ofworkers in the industry has increased by 15%. The number of workers in industry that aresupported by the Construction Training Fund has increased by 1 1.85%.As at April 2015, there were 158,160 workers employed in the construction industry however, the"Number of workers in the industry" includes the engineering construction workforce within themining sector and is estimated as 20% of the construction workforce.s These workers are notentitled to access subsidies from the Construction Training Fund but are included as workers in theindustry.
Therefore, the engineering construction workforce within the mining sector is excluded from theabove tables to reflect the true workforce eligible for Construction Training Fund support."The number of people receiving training support has increased 2,175 since 2013-14 becausethousarids of workers from the resources sector who are already skilled are moving back to thetraditional sectors of the construction industry, but are undertaking occupational safety and healthtraining to meet current Certification requiremerits.
:Australian Bureau of Statistics, Labour Force, 6291 .0.55.003 - Australia, Detailed, Quarterly? Trainirig Rate in utcome 2 is t e ratio o people trained in Supplementary Skrlls compared to tota eligib e peop e tn wor orce6 - - . ' aABS Labour Mobtltty and Intentions Survey 2008
KEY PERFORMANCE INDICATORS
Oufcorne 2 - Pvogcarns support an improvement in the quaiity of training
KPI 2.1 l€The proportion of workers surveyed who are satisfied with the quality oftraining supported by the Construction Training Fund."
Name: Bu0/ding workev satisfaction /eve/sSource: Satisfaction surveys of workevs
# Surveyed # of Responsesl
I 11,715
li 11,715 l
& *l
Tgp$porises
11,141
:!2al
gg@
80%
"in"ia-'is
95.1 %
?
2013-14 2012-13 2011-12 l
96% l 97% 96%
Note: All percentages are rounded up or down to the nearest whole number
Methodo!ogy of survey - buidtng vvorker satisfaction !eve!s
The indicator relating to 'worker satisfaction' is a measure of the level of satisfaction withsupplementary skills training, and occupational safety and health training (OSH) that was subsidisedby the Construction Training Fund (the Fund) within the Iast twelve months.
Building worker satisfaction Ievels were determined by surveying students who had undertakensupplementary skills training courses at private Registered Training Providers (RTP) deliveringcourses subsidised by the Fund and by individual claims. The survey was included on the Fundclaim form which had to be completed and returned to the Fund in order to obtain a reimbursementfor the course completed. Results from the survey were entered into the Fund's CRM database andthe level of satisfaction was derived from these resp0nses."
Satisfaction levels were calculated on a scale of 1 to s, where 1 is very dissatisfied and s is verysatisfied. Response Ievels 4 - s were included as positive responses in the result.
There were 408 responses (3.5%) in the mid-range where the respondent was neither satisfied nordissatisfied. A further 166 respondents (1 .4%) indicated some degree of dissatisfaction.
To ensure that the satisfaction level was consistent across training providers, a random sampleacross nine private RTPs with 5,750 responses was considered.' The percentage of overallsatisfaction was 95.8% with a confidence interval of O.14 and a Ievel of confidence of 99%.9 Asecond random survey was also undertaken, using nine different RTPs with 2,765 responses, tocompare satisfaction Ievels; the result was a difference of O.6% between the 2 sets of sample RTPs.
In addition to the responses received from the direct survey of employers and workers, the Fundrelies on other feedback mechanisms. These include industry stakeholder advisory groups, industryemployer/employee associations and regular contact with RTPs where overail positive feedback isreceived regarding the performance of the Fund.
Comparing results from previous years, this analysis uses a wider spread of RTPs. This has shownthat even though there is a change in the respondent cohort, the satisfaction rate is exceeding targetand is almost the same as previous years. This demonstrates a high Ievel of satisfaction across agreater number of RTPs in the survey.
'. Survey Results - http://dataserv/cmi/eware.dll/go? The responses in this survey were received up to 29 May 20159 '
c.h}m - lo determine confidence in}erval
KEY PERFORMANCE IND?CATORS
KPI 2.2 lxThe proportion of employers surveyed who are satisfied overall with thequality of training supported by the Construction Training Fund."
Name: Employer satisfaction levelsSource.a Satisfaction sutvey of emp]oyersl # - Satisfied1 .. #ofResponses R
2,402 i 2,402 i 2,234
Note: All percentages are rounded up or down to the nearest whole number
Methodoiogy of survey - employer satisfaction levers
The KPIs detailed in this report relate to the results from the collation of the satisfaction surveyscompieted on the supplementary skills program claim forms.
The responses to the claim form surveys were entered into the Fund CRM database and satisfactionpercentages were derived from these results.'o
The 2,402 employers surveyed represented a 100% response rate, which was a marked increaseon previous surveys for this KPI. Satisfaction levels were calculated on a scale of 1 to s, where 1 isvery dissatisfied and s is very satisfied and was derived from the question "How would you rate yourlevel of satisfaction with the subsidised training undertaken by your employee/s?" Response levels4 - s were included as positive responses in the result.
Based on the sample of 2,402 responses there were 2,234 satisfied responses and the percentageof overall satisfaction was 93% with a confidence interval of .28 at a Ievel of confidence of 99%."
There were 143 responses (6%) in the mid-range where the respondent was neither satisfied nordissatisfied. A further 25 respondents (1 %) indicated some Ievel of dissatisfaction.
Compared to 2013-14, the level of dissatisfaction in response levels 1 - 3 reduced by 5%, eventhough the total overall number of responses in 2014-15 increased by over 500%.
The overall satisfaction rate has increased by five percentage points in 2014-15 which may beattributed to the mandatory completion of the satisfaction survey on the new claim forms.
A shorter time Iapse between delivery and the requirement to respond ensures a more reliable andtimely response to the survey.
'o Survey Results- htkp://dataserv/crm/eware.dll/qo11' . ? .
Survey System http.//www.surveysystem.com/sscalc.htm - used to determine confidence interval
KEY EFFICIENCY PERFORMANCE INDICATORS
KPI 1.1 ilThe total administration costs of the Building and Construction IndustryTraining Fund as a percentage of the Fund's total expenditure. 55
2013-14-- 2012-13 2011-12"MaqrZU14-15
r 6.62%r
i7.27% I 7.43% l 6.60% l
There has been a O.65% decrease in the administration cost as a percentage of total expenditure in2014-15 due to:
* An increase in total expenditure from $31.3 million in 2013-14 to $34.4 million in 2014-15.During this period training expenditure increased by $2.6 million and program expenditureincreased by $0.4 million.
KPI 1.2 "The specific administration costs of the Building and Construction lndustr5rTraining Fund represented as a cost per apprentice or trainee subsidised by theFund."
is.-?
lTh
2014-15 2013-14 2012-13 2011-12 -lr $59.37 l $57.B4 r $76.53 l
Specific administration costs represented as a cost per apprentice or trainee increased in 2014-15from $53.18 to $59.37. This is due to:
* An increase in administration costs resulting from the employment of an additional TrainingSupport Officer.
* Whilst the number of base apprentice subsidies remained the same as Iast year there were1,287 additional bonus subsidies provided, a 54% increase which increased administrativeworkloads.
$53.18
KPI 1.3 IlThe specific administration costs of the Building and Construction IndustryTraining Fund represented as a cost per person supported by the Fund to undertakeskills training or vocational education."
l ';ioia-ts zo'is-*a 'rn'i'r-'i:i zo'ii-rzr $16.05 r $18.98 J $13.94 l $12.21 l
Specific administration costs represented as a cost per person supported to undertake skills trainingor vocational education decreased in 2014-15 from $18.98 to $16.05. This is due to:
* An increase in subsidies paid from 18,335 to 20,487.
BU?LDING AND CONSTRUCTION INDUSTRY TRAINING BOARDNotes to the Financial Statements
For the year ended 30 June 2015
CERTIFICAT?ON OF FINANCIAL STATEMENTS
The accompanying financiai statements of the Building and Construction IndustryTraining Board have been prepared in compliance with the provisions of the FinancialManagement Act 2006 from proper accounts and records to present fairly the financialtransactions for the financiai year ended 30 June 201 s and the financial position as at30 June 2015.
At the date of signing we are not aware of any circumstances which would render theparticulars included in the financial statements misleading or inaccurate.
]JLc $0/ 3/ l(Mark Lukan
Chief Finpce Officer
Date
'../'
l ,m/ rl?/?y'lan Hill
Chairman
For the BCIT Board
Date
/b/ g /{..5Susan BaileyBoard Mernber
For the BCIT Board
Date'
,? o?a'a%?,,
o'ii
-,-.,-'
William Buck Audit (WA) Pty Ltd1
BUILDING AND CONSTRUCTIONINDUSTRY TRAINING BOARD
FlNANClAL STATEMENTS
For the year ended 30 June 2015
BU?LDING AND CONSTRUCTION INDUSTRY TRAINING BOARD (BCITB)STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2015
Note 2015
($'000)
2014
($'ooo)INCOME
Revenue
Levy receiptsInterest revenue
Other revenue
TOTAL INCOME
3
4
s
33,878593
621
35,092
33,858591
545
34,994
EXF N' r-ctwaca
Employee benefits expenseSupplies and servicesDepreciation expenseAccommodation expensesGrants and subsidies - programs recurrentGrants and subsidies - training expenditure recumOther expensesRevenue collection costs
TOTAL EXPENSES
6
7
8
9
10
10
11
12
2,149559
84
225
2,38928,707
37
246
34,396
2,011643
93
227
1,99326,081
35
239
31,322
PROFIT FOR THE PERIOD 696 3,672
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 696 3,672
The Statement of Comprehensive Income should be read in conjunction with theaccompanying notes.
2
BU?LDING AND CONSTRUCTION INDUSTRY TRAINING BOARD
STATEMENT OF FINANCIAL POS?TION
As at 30 June 2015
Note 2015
($'000)2014
($'000)
ASSETS
Current Assets
Cash and cash equivatentsReceivables
Other current assets
Total Current Assets
13
14
15
17,789149
2,164
20102
"i7,032173
1,93919,"144
Non-Current Assets
Property, plant and equipmentTotal Non-Current Assets
16 35
35
104
104
TOTAL ASSETS 20,137 19,248
LIAB?LIT?ES
Current Liablilities
PayablesProvisions
Other current Iiabilities
Total Current Liabilities
18
19
20
32
233
11651 ,430
27
281
919
1,227
Non-Current Liabilities
Provisions
Total Non-Current Liabilities
19 98
98
108
108
TOTAL LIABIL?TIES 1,528 1,335
NET ASSETS 18,609 17,913
EQUITY
Retained earningsTOTAL EQUITY
21 18,60918,609
17,91317,913
The Statement of Financial Position should be read in conjunction with theaccompanying notes.
3
BUILDING AND CONSTRUCTION INDUSTRY TRA?NING BOARD
STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2015
Contributed Retained Earnings TotalNote equity Reserves surplus/(deficit) Equity
($'000) ($'000) ($'000)
Balance at 30 June 2013
Balance at I July 2013
Surplus/DeficitOther Comprehensive Income
Balance at 30 June 2014
Balance as at I July 2014
Surplus/DeficitOther Comprehensive Income
Balance at 30 June 2015
21 14,241 14,241
14,241 14,241
3,672 3,672
17,913 17,913
17,913 17,913
696 696
18,609 18,609
The Statement of Changes in Equity should be read in conjunction with the accompanying notes.
4
BU?LDING AND CONSTRUCTION INDUSTRY TRAINING BOARD
STATEMENT OF CASH FLOWS
For the year ended 30 June 2015
Note 2015
($'000)
2014
($'000)
CASH FLOWS FROM OPERATING ACTMTIES
ReceiptsLevies from project ownersInterest received
Other receiptsGST receipts from taxation authority
33,393614
620
165
34,792
33,586543
546
208
34,883
PaymentsEmployee benefitsSupplies and servicesAccommodation
Grants and subsidies - programs recurrentGrants and subsidies - training expenditure recurrentGST payments on purchases
(2,209)(607)(226)
(2,404)(28,421)
(153)(34,020)
(2,012)(654)(226)
(1,908)(26,208)
(227)(31,235)
NET CASH PROVIDED BY OPERATING
ACTMTIES 22b 772 3,648
CASH FLOWS FROM INVESTING ACTMTIES
Purchase of non-current physical assets
NET CASH (USED IN) INVESTING ACTMTIES
NET INCREASE/(DECREASE) IN CASH ANDCASH EQUIVALENTS
Cash and cash equivalent at the beginning of the period
CASH AND CASH EQUIVALENT ASSETS AT
THE END OF THE PERIOD
(15)
(15)
757
17,032
22a 17,789
(19)
(19)
3,629
13,403
17,032
The Statement of Cash Flows should be read in conjunction with theaccompanying notes. s
BU?LDING AND CONSTRUCTION INDUSTRY TRAINING BOARD
Index of Notes to the Financial Statements
For the year ended 30 June 2015
Subject
General
General
General
General
General
Income
Income
Income
General
Assets
Assets
Assets
General
Assets
Assets
ASSets
LiabilityLiability
ExpenseLiabilityGeneral
ExpenseGeneral
General
General
ExpenseExpenseExpenseExpenseExpenseExpenseExpenseIncome
Asset
LiabilityEquityCash Flow
General
General
General
General
General
General
External
General
General
PolicyNote
1
2
2a
2b
2c
2d
2e
2f
2g2j2h
21
2i
2m
2n
2o
2o (i)2o (ii)
2p2k
2q2r
2s
2t
2u
Disclosure Title of the Disclosure note
Note
3
4
16
17
13
24
14
28
18
19
6
20
23
6
7
8
9
10
11
12
s
15
20
21
22
25
26
27
29
30
31
32
33
34
Australian Accounting StandardsSummary of significant accounting policies
General Statement
Basis of PreparationReporting EntityIncome
Levy receiptsInterest revenue
Income tax
Property, Plant and EquipmentImpairment of assetsCash and cash equivalentsLeases/Commitrments
Receivables
Financial instruments
Investments and Other Financial Assets
PayablesProvisions
Provisions - Employee benefitsProvisions - Other
Superannuation expenseOther Liabilities
Assets and Services received free of charge or for nominal costComparative figuresDisclosure of changes in accounting policy and estimatesJudgements made by management in applying accounting policiesKey sources of estirriation uncertaintyEmployee benefits expenseSupplies and servicesDepreciationAccommodation expensesGrants and subsidies
Other expensesRevenue collection costs
Other revenue
Other assets
Other liabilities
Retained earningsNotes to the Statement of Cash Flows
Contingent Liabilities and Contingent AssetsEvents occurring after the end of the reporting periodExplanatory statementRemuneration of members of the Accountable Authority and senior officersRemuneration of auditor
Related bodies
Affiliated bodies
Supplementary financial informationEquity
6
This index does not form part of the financial statements.
BUILDING AND CONSTRUCTION INDUSTRY TRAIN?NG BOARDNotes to the Financial Statements
For the year ended 30 June 2015
1. Australian Accounting Standards
General
The Building and Construction Industry Training Board's (Board) financial statements forthe year ended 30 June 2015 have been prepared in accordance with Austra!ianAccounting Standards. The term "Australian Accounting Standards" includes Standardsand Interpretations issued by the Australian Accounting Standards Board (AASB).
The Board has adopted any applicable new and revised Australian Accounting Standardsfrom their operative dates.
Early adoption of standards
The Board cannot early adopt an Australian Accounting Standard unless specificallypermitted by Tl 1101 Application of Australian Accounting Standards and OtherPronouncements. There has been no early adoption of Australian Accounting Standardsthat have been issued or amended (but not operative) by the Board for the annualreporting period ended 30 June 2015.
2. Summaiy of significant accounting policies
(a.) General Statement
The Board is a not-for-profit reporting entity that prepares general purpose financialstatements in accordance with Australian Accounting Standards, the Framework,Statements of Accounting Concepts and other authoritative pronouncements of theAASB as applied by the Treasurer's instructions. Several of these are modified by theTreasurer's instructions to vary application, disclosure, format and wording.
The Financial Management Act and the Treasurer's instructions impose Iegislativeprovisions that govern the preparation of financial statements and take precedenceover Australian Accounting Standards, the Framework, Statements of AccountingConcepts and other authoritative pronouncements of the AASB.
Where modification is required and has had a material or significant financial effectupon the reported results, details of that modification and the resulting financial effectare disclosed in the notes to the financial statements.
(b.) Basis of Preparation
The financial statements have been prepared on the accrual basis of accountingusing the historicat cost convention.
7
BUILDING AND CONSTRUCTION INDUSTRY TRAIN?NG BOARDNotes to the Financial Statements
For the year ended 30 June 2015
The accounting policies adopted in the preparation of the financial statements havebeen consistently applied throughout all periods presented unless otherwise stated.
The financial report is presented in Australian dollars and all values are rounded to thenearest thousand dollars ($'000).
Note 2t "Judgements made by management in applying accounting policies" disclosesjudgements that have been made in the process of applying the Board's accountingpolicies resulting in the most significant effect on amounts recognised in the financialstatements.
Note 2(u) "Key sources of estimation uncertainty" discloses key assumptions madeconcerning the future and other key sources of estimation uncertainty at the end of thereporting period, that have a significant risk of causing a material adjustment to thecarrying amount of assets and liabilities within the next financial year.
(c.) Reporting Entity
The reporting entity comprises the Building and Construction Industry Training Board,there being no related bodies.
(d.) Income
Revenue Recognition
Revenue is recognised and measured at the fair value of consideration received orreceivable. Revenue is recognised for the major business activities as follows:
Levy income
The principal revenue is levy collection based on the value of that construction workin accordance with Section 21 of the Building and Construction Industry TrainingFund and Levy Collection Act of 1 990. Revenue is recognised on receipt from projectowners and in respect of collection agents, when the levy is received by an agent. Anestimate of funds held by agents at the end of the reporting period is recognised asincome for the period. Levy receipts are shown net of refunds: 2015 $591 ,082 (20'l4$746,936).
Interest
Revenue is recognised as the interest accrues.
8
BUILDING AND CONSTRUCTION INDUSTRY TRA?NING BOARDNotes to the Financial Statements
For the year ended 30 June 2015
Gains
Realised and unrealised gains are usually recognised on a net basis. These includegains arising on the disposal of non-current assets and some revaluations of non-current assets.
(e.) Income Tax
The Board has been exempted from income tax under the provisions of section 23(d)of the Income Tax Assessment Act.
(f.) Plant and Equipment
Capitalisation/expensing of assets
Items of plant and equipment costing $5,000 or more are recognised as assets andthe cost of utilising assets is expensed (depreciated) over their useful lives. Items ofplant and equipment costing less than $5,000 are immediately expensed direct to theStatement of Comprehensive Income (other than where they form part of a group ofsimilar items which are significant in total).
Initial recognition and measurement
Plant and equipment are initially recognised at cost.
For items of plant and equipment acquired at no cost or for nominal cost, the cost istheir fair value at the date of acquisition.
Subsequent measurement
Subsequent to initial recognition as an asset, the historical cost model is used for allplant and equipment. All items of plant and equipment are stated at historical costIess accumulated depreciation and accumulated impairment Iosses.
Depreciation
All non-current assets having a Iimited useful life are systematically depreciated overtheir estimated useful Iives in a manner that reflects the consumption of their futureeconomic benefits.
Depreciation is calculated using the straight line method, using rates which arereviewed annually. Estimated useful lives for each class of depreciable asset are:
Office equipmentOffice furnishings
3 yearss years
9
BUILDING AND CONSTRUCTION INDUSTRY TRAINING BOARD
Notes to the Financial Statements
For the year ended 30 June 2015
(g.) Impairment of Assets
Ptant and equipment are tested for any indication of impairment at the end of eachreporting period. Where there is an indication of impairment, the recoverable amountis estimated. Where the recoverable amount is less than the carrying amount, theasset is considered impaired and is written down to the recoverable amount and animpairment loss is recognised. As the Board is a not-for-profit entity, unless an assethas been identified as a surptus asset, the recoverable amount is the higher of anasset's fair value less costs to sell and depreciated replacement cost.
The risk of impairment is generally Iimited to circumstances where an asset'sdepreciation is materially understated, where the replacement cost is falling or wherethere is a significant change in the useful Iife. Each relevant class of assets isreviewed annually to verify that the accumulated depreciation/amortisation reflectsthe level of consumption or expiration of asset's future economic benefits and toevaluate any impairment risk from falling replacement costs.
(h.) Leases
The Board has entered into several operating lease arrangements for the rent of theoffice building and motor vehicles. Lease payments are expensed on a straight linebasis over the lease term as this represents the pattern of benefits to be derived fromthe leased properties.
(i.) Financial Instruments
In addition to cash, the Board has three categories of financial instruments:Loans and receivables
Held-to-maturity investments (term deposits); andFinancial Iiabilities measured at amortised cost.
*
*
*
Financial Instruments have been disaggregated into the following classes:
Financial Assets
Cash and cash equivalentsReceivables
Term deposits
*
*
*
Financial Liabilities
Payables*
Initial recognition and measurement of financial instruments is at fair value whichnormatly equates to the transaction cost or face value. Subsequent measurement isat amortised cost using the effective interest method.
10
BUILD?NG AND CONSTRUCTION INDUSTRY TRAINING BOARDNotes to the Financial Statements
For the year ended 30 June 2015
The fair value of short-term receivables and payables is the transaction cost or theface value because there is no interest rate applicable and subsequent measurementis not required as the effect of discounting is not material.
(j.) Cash and Cash Equivalents
For the purpose of the Statement of Cash Flows, cash and cash equivalent assetscomprise cash on hand and short-term deposits with original maturities of threemonths or !ess that are readily convertible to a known amount of cash and which aresubject to insignificant risk of changes in value.
(k.) Accrued Salaries
Accrued salaries represent the amount due to staff but unpaid at the end of thefinancial year. Accrued salaries are settled within a fortnight of the financial year end.The Board considers the carrying amount of accrued salaries to be equivalent to itsnet fair value.
(l.) Receivables
Receivables are recognised at original invoice amount Iess an atlowance for anyuncol(ectible amounts (impairment). The collectability of receivables is reviewed onan ongoing basis and any receivables identified as uncollectible are written-offagainst the allowance account. The allowance for uncollectible amounts (doubtfuldebts) is raised when there is objective evidence that the Board will not be able tocollect its debts. The carrying amount is equivalent to fair value as it is due forsettlement within 30 days. See note 28 'Financial lnstruments' and note 14'Receivables'.
(m.) Investments and Other Financial Assets
The Board classifies its investments into the following categories: financial assets atfair value through profit or loss, Ioans and receivables and held to maturityinvestments. The classification depends on the purpose for which the investmentswere acquired. Management determines the classification of its investments at initialrecognition and re-evaluates this designation at the end of the reporting period.Investments not at fair value are initiaily recognised at cost being the fair value ofconsideration given, including directly attributable transaction costs.
11
BUILDING AND CONSTRUCTION INDUSTRY TRA?NING BOARDNotes to the Financial Statements
For the year ended 30 June 2015
Non-derivative financial assets with fixed or determinable payments and fixedmaturity dates are classified as herd-to-maturity when management has a positiveintention and ability to hold to maturity. Investments intended to be held for anundefined period are not included in this classification.
Loans and receivables and held-to-maturity investments, such as commercial biilsare subsequently measured at amortised cost using the effective interest method.Amortised cost is calculated by taking into account any discount or premium onacquisition, over the period to maturity. For investments carried at amortised cost,gains and losses are recognised in the Statement of Comprehensive Income whenthe investments are derecognised or impaired, as well as through the amortisationprocess.
The Board assesses at each balance date whether there is objective evidence that afinancial asset or group of financial assets is impaired.
(n.) Payables
Payables are recognised at the amounts payable when the Board becomes obligedto make future payments as a result of a purchase of assets or services, as they aregenerally settled within 30 days. See note 28 'Financial lnstruments' and note 18'Payables'.
(o.) Provisions
Provisions are Iiabilities of uncertain timing or amount and are recognised wherethere is a present Iegal or constructive obligation as a resu)t of a past event and whenthe outfiow of resources embodying economic benefits is probable and a reliableestimate can be made of the amount of the obligation. Provisions are reviewed at theend of the reporting period. See note 19 'Provisions'.
(i) Provisions - Employee Benefits
All annual leave and Iong service leave provisions are in respect of employees'services up to the end of the reporting period.
Annual Leave
Annual Ieave is not expected to be settled wholly within 12 months after the endof the reporting period and is therefore considered to be 'other long-term employeebenefits'. The annual Ieave Iiability is recognised and measured at the presentvalue of amounts expected to be paid when the Iiabilities are settled using theremuneration rate expected to apply at the time of settlement.
12
BUILDING AND CONSTRUCTION INDUSTRY TRAINING BOARDNotes to the Financial Statements
For the year ended 30 June 2015
When assessing expected future payments consideration is given to expectedfuture wage and sa!ary Ievels including non-salary components such as employersuperannuation contributions, as well as the experience of employee departuresand periods of service. The expected future payments are discounted usingmarket yields at the end of the reporting period on national government bonds withterms to maturity that match, as closely as possible, the estimated future cashoutflows.
The provision for annual leave is classified as a current liability as the Board doesnot have an unconditional right to defer settlement of the Iiabitity for at Ieast 12months after the end of the reporting period.
Long Service Leave
Long service Ieave is not expected to be settled wholly within 1 2 months after theend of the reporting period is recognised and measured at the present value ofamounts expected to be paid when the Iiabilities are settled using the remunerationrate expected to apply at the time of settlement.
When assessing expected future payments consideration is given to expectedfuture wage and salary levels including non-salary components such as employersuperannuation contributions, as well as the experience of employee departuresand periods of service. The expected future payments are discounted usingmarket yields at the end of the reporting period on national government bonds withterms to maturity that match, as closely as possible, the estimated future cashoutflows.
Unconditional Iong service Ieave provisions are classified as current liabilities asthe Board does not have an unconditional right to defer settlement of the liabilityfor at least 12 months after the end of the reporting period. Pre-conditional andconditional long service leave provisions are classified as non-current liabilitiesbecause the Board has an unconditional right to defer the settlement of the Iiabilityuntil the employee has completed the requisite years of service.
(ii) Provisions - Other
Employment on-costs
Employment on-costs, including workers' compensation insurance, are notemployee benefits and are recognised separately as liabilities and expenses whenthe employment to which they relate has occurred. Employment on-costs areincluded as part of "Other expenses" and not included in the Board's "Employeebenefits expense". The related liability is included in "Employment on-costsprovision". See note 11 'Other expenses' and note 19 'Provisions'.
13
BUILDING AND CONSTRUCTION INDUSTRY TRAINING BOARDNotes to the Financial Statements
For the year ended 30 June 2015
(p.) Superannuation Expense
The Board complies with Commonwealth legislation by making contributionsaccording to individual requirements. Contributions are paid to selectedsuperannuation funds complying with the Commonwealth Government'sSuperannuation Guarantee (Administration) Act 1992. See note 2(n) (i) "Provisions-Employee Benefits".
(q.) Assets and Services Received Free of Charge or for Nominal Cost
Assets and services received free of charge or for nominal cost that can be reliablymeasured are recognised as at fair value. Where the asset or service receivedrepresents a service that the Board would otherwise pay for, a correspondingexpense is recognised. Receipts of assets are recognised in the Statement ofFinancial Position.
Assets or services are received from other State Government agencies areseparately disclosed under Income from State Government in the Statement ofComprehensive Income.
(r.) Comparative Figures
Comparative figures are, where appropriate, reclassified to be comparable with thefigures presented in the current financial year.
(s.) Disclosure of changes in accounting policy and estimates
Initial application of an Australian Accounting Standard
The Board has applied the following Australian Accounting Standards effective forannual reporting periods beginning on or after I July 2014 that impacted on the Board.
lNT2l Levies
This Interpretation clarifies the circumstances under which aliability to pay a government Ievy imposed should berecognised. There is no financial impact for the Board atreporting date.
AASB 1031 Materiality
This Standard supersedes AASB j03'l (February 2010),removing Australian guidance on materiality not available inIFRSs and refers to guidance on materiality in other Australianpronouncements. There is no financial impact.
14
BU?LDING AND CONSTRUCTION INDUSTRY TRA?NING BOARDNotes to the Financial Statements
For the year ended 30 June 2015
AASB 1055 Budgetary Reporting
This Standard requires specific budgetary disclosures in thegeneral purpose financial statements of not-for-profit entitieswithin the General Government Sector. The Board will be
required to disclose additional budgetary information andexplanations of major variances between actual and budgetedamounts, though there is no financial impact.
AASB 2012-3 Amendments to Australian Accounting Standards - OffsettingFinanciat Assets and Financial Liabilities [AASB 132]
This Standard adds application guidance to AASB 132 toaddress inconsistencies identified in applying some of theoffsetting criteria, including clarifying the meaning of "currentlyhas a legally enforceable right of set-off' and that some grosssettlement systems may be considered equivalent to netsettlement. There is no financial impact.
AASB 2013-3 Amendments to AASB 136 - Recoverable Amount Disclosuresfor Non-Financial Assets
This Standard introduces editorial and disclosure changes.There is no financial impact.
AASB 2013-4 Amendments to Australian Accounting Standards - Novationof Derivatives and Continuation of Hedge Accounting [AASB139]
This Standard permits the continuation 6f hedge accounting incircumstances where a derivative, which has been designatedas a hedging instrument, is novated from one counterparty to acentral counterparty as a consequence of Iaws or regulations.The Board does not routinely eriter into derivatives or hedges,therefore there is no financial impact.
AASB 2013-9 Amendments to Australian Accounting Standards -ConceptualFramework, Materiality and Financial Instruments
Part B of this omnibus Standard makes amendments to other
Standards arising from the deletion of references to AASB 1031in other Standards for periods beginning on or after I January20j4. It has no financial impact.
15
BU?LDING AND CONSTRUCTION INDUSTRY TRAINING BOARDNotes to the Financial Statements
For the year ended 30 June 2015
AASB 2014-1 Amendments to Australian Accounting Standards
Part A of this Standard consists primarily of clarifications toAccounting Standards and has no financiai impact for the Board.
Part B of this Standard has no financial impact as the Boardcontributes to schemes that are either defined contribution
plans, or deemed to be defined contribution plans.
Part C of this Standard has no financial impact as it removesreferences to AASB 1031 Materiality from a number ofAccounting Standards
Future impact of Australian Accounting Standards not yet operative
The Board cannot early adopt an Australian Accounting Standard unless specificallypermitted by Tl 1101 Application of Australian Accounting Standards and OtherPronouncements. Consequently, the Board has not applieid early any of the followingAustralian Accounting Standards that have been issued that may impact the Board.Where applicable, the Board plans to apply these Australian Accounting Standardsfrom their application date.
Operative forreporting periodsbeginning on/after
AASB 9 Financial Instruments 1 Jan 2017
This Standard supersedes AASB 139 Financial Instruments:Recognition and Measurement, introducing a number ofchanges to accounting treatments.
The mandatory application date of this Standard is currently 1January 2018 after being amended by AASB 2012-6, AASB2013-9 and AASB 2C)14-1 Amendments to Australian
Accounting Standards. The Board has not yet determined theapplication or the potential impact of the Staridard.
AASB15 Revenue from Contracts with Customers 1 Jan 2017
This Standard establishes the principles that the Board shallapply to report useful information to users of financialstatements about the nature, amount, timing and uncertainty ofrevenue and cash flows arising from a coritract with a customer.The Board has not yet determined the application or thepotential impact of the Standard.
16
BUILDING AND CONSTRUCTION INDUSTRY TRAINING BOARDNotes to the Financial Statements
For the year ended 30 June 2015
AASB 2010-7 1 Jan 2018
Amendments to Australian Accounting Standards arising fromAASB 9 (December 2010) (AASB 1, 3, 4, s, 7, lO"l, 102, 108,112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023, &1038 and Int 2, s, 10, 12, 19, & 127)
This Standard makes consequential amendments to otherAustralian Accounting Standards and Interpretations as a resultof issuing AASB 9 in December 2010.
The mandatory application date of this Standard has beenamended by AASB 2012-6 and AASB 2014-1 to I January2018. The Board has not yet determined the application or thepotential impact of the Standard.
AASB 2013-9 1 Jan 2C)15
Amendments to Australian Accounting Standards ConceptualFramework, Materiality and Financial Instruments.
Part C of this omnibus Standard defers the application of AASB9 to January 1 2017. The application date of AASB 9 wassubsequently deferred to I January 2018 by AASB 2014-1 .TheBoard has not yet determined the application or the potentialimpact of AASB 9.
AASB 2014-'I 1 Jan 2018
Amendments to Australian Accounting Standards
Part E of this Standard makes amendments to AASB 9 and
consequential amendments to other Standards. It has not yetbeen assessed by the Board to determine the application orpotential impact of the Standard.
AASB 2014-4 1 Jan 2016
Amendments to Australian Accounting Standards - Clarificationof Acceptable Methods of Depreciation and Amortisation [AASB116&138]
The adoption of this Standard has no financial impact for theBoard as depreciation and amortisation is not determined byreference to revenue generation, but by reference toconsumption of future economic benefits.
17
BUlLDING AND CONSTRUCTION INDUSTRY TRAINING BOARD
Notes to the Financial Statements
For the year ended 30 June 2015
AASB 2014-s 1 Jan 2017
Amendments to Australian Accounting Standards arising fromAASB15
This Standard gives effect to the consequential amendments toAustralian Accounting Standards (including Interpretations)arising from the issuance of AASB 15. The Board has not yetdetermined the application or the potential impact of theStandard.
AASB 2014-7 1 Jan 2018
Amendments to Australian Accounting Standards arising fromAASB 9 (December 2014)
This Standard gives effect to the consequential amendments toAustralian Accounting Standards (including Interpretations)arising from the issuance of AASB 9 (December 2014). TheBoard has not yet determined the application or the potentialimpact of the Standard.
AASB 2014-8 1 Jan 2015
Amendments to Australian Accounting Standards arising fromAASB 9 (December 2014) - Application of AASB 9 (December2009) and AASB 9 (December 2010) [AASB 9 (2009 & 2010)]
This Standard makes amendments to AASB 9 Financial
Instruments (December 2009) and AASB 9 FinancialInstruments (December 2010), arising from the issuance ofAASB 9 Financial Instruments in December 2C)14. The Board
has not yet determined the application or the potential impact ofthe Standard.
AASB 2015-1 1 Jan 2016
Amendments to Australian Accounting Standards - AnnualImprovements to Australian Accounting Standards 2012-2014Cycle [AASB 1, 2, 3, s, 7, 11, 110, 119, 121, 133, 134, 137 &140?
These amendments arise from the issuance of International
Financial Reporting Standard Annual Improvements to IFRSs2012-2014 Cycle in September 2014, and editorial corrections.The Board has not yet determined the application or thepotential impact of the Standard.
18
BU?LDING AND CONSTRUCTION INDUSTRY TRAINING BOARDNotes to the Financial Statements
For the year ended 30 June 2015
AASB 2015-2 1 Jan 2016
Amendments to Australian Accounting Standards - DisclosureInitiative: Amendments to AASB 101 [AASB 7, 101 , 134 & 1049]
This Standard amends AASB 101 to provide clarificationregarding the disclosure requirements in AASB l0'l.Specifically, the Standard proposes narrow-focus amendmentsto address some of the concerns expressed about existingpresentation and disclosure requirements and to ensure entitiesare able to use judgement when applying a Standard indetermining what information to disclose in their financialstatements. There is no financial impact.
AASB 2015-3 1 Jan 20"l5
Amendments to Australian Accounting Standards arising fromthe Withdrawal of AASB 1031 Materiality
This Standard completes the withdrawal of references to AASB1031 in all Australian Accounting Standards and Interpretations,allowing that Standard to effectively be withdrawn. There is nofinancial impact.
AASB 2015-6 1 Jul 2016
Amendments to Austratian Accounting Standards - ExtendingRelated Party Disclosures to Not-for-Profit Pubiic Sector Entities[AASB 10, 124 & 1049]
The amendments extend the scope of AASB 124 to includeapplication by not-for-profit public sector entities.Implementation guidance is included to assist application of theStandard by not-for-profit public sector entities. The Board hasnot yet determined the application of the Standard, though thereis no financial impact.
(t.) Judgements made by management in applying accounting policies
The preparation of financial statements requires management to make judgementsabout the application of accounting policies that have a significant effect on theamounts recognised in the financial statements. The Board evaluates thesejudgements regularly.
19
BUILD?NG AND CONSTRUCTION INDUSTRY TRA?NING BOARDNotes to the Financial Statements
For the year ended 30 June 2015
(u.) Key sources of estimation uncertainty
Key estimates and assumptions concerning the future are based on historicalexperience and various other factors that have a significant risk of causing materialadjustments to the carrying amount of assets and Iiabilities within the next financialyear.
Long Service Leave
Several estimations and assumptions used in calculating the Board's long serviceIeave provision, expected future saiary rates, discount rates, employee retentionrates and expected future payments. Changes in these estimations and assumptionsmay impact on the carrying amount of the long service leave provision.
20
BUILD?NG AND CONSTRUCTION INDUSTRY TRAINING BOARDNotes to the Financial Statements
For the year ended 30 June 2015
2015
($'000)
2014
($'000)3 Levy Receipts
Levy receipts 33,878 33,858
Levy receipts by sectorHousingCommercial
EngineeringMining
18,70710,3534,638
180
33,878
17,227
10,191
5,614
826
33,8584 Interest Revenue
Interest revenue 593
593
591
59"l
Earned on current bank accounts and investments by way of term deposits
s 0ther Revenue
Department of Training and Workforce DevelopmentTraining 457 VisaSundry Income
515
105
1
621
500
44
1
545
6 Employee Benefits ExpenseWages & Salaries (a)Superannuation- superannuation guarantee IevyLong service Ieave (b)Annual Ieave (b)Other employee costs
1,823l8al
(54)(4)
203
2,149
1,691165
(io)23
142
2,011
(a) Includes the value of fringe benefit to the employee plus the fringe benefit tax component.(b) Includes a superannuation contribution component.
Employment on-costs such as worker's compensation insurance are included at note 11 'OtherExpenses'. The employment on-cost liability is included at note 19 'Provisions'.
7 Supplies and ServicesBank chargesCommunications
Consumables
Accounting & audit feesBoard costs
Insurance
Legal FeesOther supplies & servicesConferences and Seminars
Travel
8
67
51
13
152
21
8
209
7
23
559
s
69
71
13
156
23
9
234
25
38
643
8 Depreciation ExpenseOffice equipment 84 93
21
BUILD?NG AND CONSTRUCTION INDUSTRY TRAIN?NG BOARD
Notes to the Financial Statements
For the year ended 30 June 2015
2015
($'000)2014
($'000)
9 Accommodation ExpenseLease rentals
Outg0ingsRepairs & maintenanceCleaning
204
11
1
9
225
202
12
4
9
227
10 Grants & Subsidies
Programs recurrentCareer promotionRPL
Research & development
2,31515
59
2,389
1 ,90835
50
1 ,993
Training expenditure recurrent
by sector-
HousingCommercial
Engineering construction
18,2298,239
2,239
28,707
15,941
7,87"l
2,269
26,081
11 0ther Expenses
Employment on-costs (a) (see note 6 'Employee benefits')Other (b)
1
36
37
1
34
35
(a) Includes worker's compensation insurance, and other employment on-costs. The on-costsIiability associated with the recognition of annual and Iong service leave Iiability is included atnote 1 9 'Provisions'. Superannuation contributions accrued as part of the provision for Ieave areemployee benefits and are not included in employment on-costs.
(b) Audit Fees, see note 30 'Remuneration of Auditor'.
12 Revenue Collection Costs
Levy collection fees 246 239
13 Cash and Cash EquivalentsBank accounts
Funds on depositOther financial assets- term deposits
708
180
16,901
1 7,789
133
80
16,819
17,032
14 Receivables
Receivables
GST receivable
Interest receivable
27
68
54
149
27
70
76
173
The Board does not hold any collateral as security or other credit enhancements relating to receivables.22
BU?LDING AND CONSTRUCTION INDUSTRY TRAINING BOARD
Notes to the Financial Statements
For the year ended 30 June 2015
2015
($'000)
2014
($'000)
15 0ther Assets
Accrued levy incomePrepayments
2,13331
2,164
1 ,89544
1,939
16 Plant & EquipmentOffice equipment at costAccumulated depreciation
752
(717)35
737
(633)104
Reconciliations of the carrying amounts of office equipment at the beginning and the end of thereporting period are set out below:
17 Impairment of AssetsThere were no indications of impairment to plant & equipment assets at 30 June 2015.
The Board held no goodwill or intangible assets with an indefinite useful Iife during the reportingperiod and at reporting date there were no intangible assets not yet available for use.
18 PayablesTrade payables 32 27
See also note 2 (n) "Payables" and note 28 Financial Instruments.
19 Provisions
?Employee benefits provision:Annual Ieave (a)Long service leave (a)
112
121
233
116
165
281
Other provisions:Employment on-costs (c)
233 281
Non current
Employee benefits provision:Long service leave (b) 98
98
108
108
23
Office equipment Total Non Current Assets
Carrying amount at start of yearAdditions
DisposalsDepreciationlmpairment IossesDepreciation writeback
Carrying amount at end of year
2015
($000)104
15
(84)
2014
($000)179
18
31
(93)
31
2015
($000)104
15
(84)
2014
($000)179
18
31
(93)
3i
35 104 35 104
BU?LDING AND CONSTRUCTION INDUSTRY TRAINING BOARD
Notes to the Financial Statements
Fortheyearended30June20l5
2015
($'000)
20"l4
($'000)19 Provisions (Cont...)
(a) Annual Ieave Iiabilities have been classified as current as there is no unconditional right todefer settlement for at Ieast 12 months after the reporting period. Assessments indicate thatactual settlement of the Iiabilities will occur as follows:
Within 12 months of the end of the reporting periodMore than 12 months after the reporting period
67
45
112
64
52
116
(b) Long service Ieave liabilities have been classified as current where there is no unconditionalright to defer settlement for at least 12 months after the reporting period. Assessments indicatethat actual settlement of the Iiabilities will occur as follows:
Within 12 months of the end of the reporting periodMore than 12 months affer the reporting period
72
49
121
92
74
166
(c) The settlement of annual and long service Ieave Iiabilities gives rise to the payment ofemployment on-costs including worker's compensation premiums and payroll tax. The provisionis measured at the present value of expected future payments. The associated expense, apartfrom the unwinding of the discount (finance cost), is included at note 11 'Other expenses'.
20 0ther Liabilities
Accrued training expensesAccrued expenses
942
223
1,165
587
332
919
21 EquityRetained EarningsBalance at the start of yearResult for the periodBalance at the end of year
17,913696
18,609
14,241
3,672
17,913
22 Notes to the Statement of Cash Flows
Reconciliation of cash
Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled tothe related items in the Statement of Financial Position as follows:
Cash and cash equivalentsBank accounts
Funds on deposita) Other financial assets- term deposits
708
180
16,901
17,789
133
80
16,819
17,032
24
BU?LDING AND CONSTRUCTION INDUSTRY TRAIN?NG BOARD
Notes to the Financial Statements
For the year ended 30 June 2015
2015
($'000)
2014
($'000)
22 Notes to the Statement of Cash Flows (Cont...)Reconciliation of profit/ (loss) to net cash flows provided by/(used in} operatinq activities:
Profit 696 3,672
Non cash items:
Depreciation expense 84 93
(Increase)/ decrease in assets:Current receivables(c)Other current assets
24
(226)(4)
(54)
Increase/ (decrease) in IiabilitiesCurrent payablesCurrent provisionsOther current Iiabilities
Non-current provisions
s
(47)246
(10)
(10)(59)(26)
36
Net GST receipts/(payments)(a)Change in GST receivables/payables(b)
b) Net cash provided by operating activities
13
(13)772
10
(10)3,648
(a) This is the net GST paid/received, re. Cash transactions
(b) This reverses out the GST in receivables and payables
(c) Note that the Australian Taxation Office (ATO) receivables/payables in respect of GST andthe receivables/payable in respect of the sale/purchase of non-current assets are not included inthese items as they do not form part of the reconciling items.
23 Assets and Services Provided Free of Charge
During the year there were no resources provided to other agencies free of charge for functionsoutside the normal operations of the Board.
24 Commitments
The commitments below are inclusive of GST where relevant.
Non-cancellable operating lease commitments
Commitments in relation to leases contracted at the end of the reporting period but notrecognised in the financial statements as liabilities, are payable as follows:
Within 1 yearLater than 1 year and not Iater than s years
251
26
277
198
14
212
Representing:Non-cancellable Operating Leases 277 212
25
BUILDING AND CONSTRUCTION INDUSTRY TRAINING BOARDNotes to the Financial Statements
Fortheyearended30June2015
In 2009 the Board entered into a non-cancellable five year Iease with the option of a five yearterm extension for premises in Hasler Road Osborne Park. In April 2014 the Board exercisedthis option and extended the Iease for a period of one year to 30 June 20al5. In April 2015 theBoard again exercised the option for a further one year ex!ention to 30 June 20al6. Rent ispayable monthly in advance. Contingent rent provisions within the lease agreement require thatthe current Iease payments should be reviewed on 30th June each year and are subject toincrease at a rate equivalent to prevailing market rates.
The Board has entered into non-cancellable operating Ieases for six motor vehicles with StateFleet. Board policy is to replace vehicles on the expiry of the Iease, the Iatest of which maturesin March 2018.
25 Contingent Liabilities
In addition to the Iiabilities included in the financial statements, there are the following contingentliabilities:
Levy refunds
During the 2014/15 year $33.88 million dollars was collected as levies. Under the Act, these arepayable before the commencement of construction and are refundable wholly or in part if theconstruction is not completed. The proportion representing incomplete work is not known andaccording to past experience the amount of the refunds in proportion to the total amountcollected is relatively insignificant and in the year ended 30th June 2C)15 amounted to $0.59lmbeing 1.75% of the amount received. No other contingent liabilities have since come to ourknowledge.
Litigation in progress
There are no known legal claims pending by third parties against the BCITB other than thosematters referred to our Iawyers or insurers in the normal course of business for which weconsider there are no significant liabilities.
26 Events Occurring After the end of the reporting period.The Board has entered into an agreement for the puchase of a property at 104 Belgravia Street,Belmont. The due diligence has been completed and settlement is expected on 1 3th September2015 subject to Treasury endorsement.
27 Explanatory Statement
Significant variations between the estimates and actual results for income and expense aspresented in the financial statement titled 'Summary of Consolidated Account Appropriationsand Income Estimates' are shown below. Major variances are considered to be those greaterthan 1 0% or $10 million.
26
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BU?LDING AND CONSTRUCTION INDUSTRY TRAINING BOARD
Notes to the Financial Statements
For the year ended 30 June 2015
28 Financial Instruments
Financial Instrument Disclosures
(a) Financial Risk Management Objectives and PoliciesFinancial instruments held by the Board are cash and cash equivalents, restricted cash andcash equivalents, borrowings, finance Ieases, Treasurer's advances, Ioans and receivables, andpayables. The Board has limited exposure to financial risks. The Boards overall riskmanagement program focuses on managing the risks identified below.
Credit risk
Credit risk arises when there is the possibility of the Boards receivables defaulting on theircontractual obligations resulting in financiat Ioss to the Board.
The maximun exposure to credit risk at the end of the reporting period in relation to each classof recognised financial assets is the gross carrying amount of those assets inclusive of anyprovisions for impairment as shown in the table at note 28(c) "Financial instruments disclosures'and note 14 "Receivables"
Liquidity risk
Liquidity risk arises when the Board is unable to meet its financial obligations as they fall due.The Board is exposed to Iiquidity risk through its trading in the normal course of business.
The Boards objective is to maintain a balance between continuity of funding and flexibilitythrough the use of bank overdraffs, Ioans and finance leases. The Board has appropriateprocedures to manage cash flows by monitoring forecast cash flows to ensure that sufficientfunds are available to meet its commitments.
Market risk
Market risk is the risk that changes in market prices such as foreign exchange rates and interestrates will affect the Boards income or the value of its holdings of financial instruments. TheBoard does not trade in foreign currency and is not materially exposed to other price risks. Otherthan as detailed in the interest rate sensitivity analysis table at note 28(c), the Board is notexposed to interest rate risk because apart from cash and cash equivalents it has noborrowings.
(b) Categories of Financial Instruments
In addition to cash and bank overdraft, the carrying amounts of each of the following categoriesof financial assets and financial liabilities at the end of the reporting period are as follows:
Financial Assets
Cash and cash equivalents
2015
$000'S
17,789
2014
$000's
17,032
Receivables
Other current assets
149
2,462
173
1,939
Financial
Financial Iiabilities measured at amortised cost (a) 943 586
(a) The amount of financial Iiabilities measured at amortised cost excludes GST payable to theATO (statutory receivable/payable)
All financial assets and Iiabilities recognised in the statement of financial position, whether theyare carried at cost or fair value, are recognised at amounts that represent a reasonableapproximation of fair value unless otherwise stated in the applicable notes. 29
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BU?LDING AND CONSTRUCTION INDUSTRY TRA?NING BOARD
Notes to the Financial Statements
For the year ended 30 June 2015
29 Remuneration of Members of the Accountable Authority and Senior OfficersRemuneration of Members of the Accountable Authority
The number of members of the Accountable Authority, whose fees, salariessuperannuation and other benefits for the financial year, fall within the following bands are:
$10,000 - $20,000
$20,OCll - $30,000$30,001 - $40,000
$40,001 - $50,000
2015
6
o
o
1
2014
6
o
o
1
Base remuneration and superannuationIan Hill
Sue BaileyMichael LlngerHayley McBrideLeslie WellingtonMax Rivett
Leslie McLaughlin
$000's43
18
18
15
18
18
12
$000's43
18
18
18
18
18
18
The total remuneration of Members of the Accountable Authority is 142 151
The total remuneration included here represents the salary and superannuation expenseincurred by the Board in respect of members of the Accountable Authority.
Remuneration of Senior Officers
The number of senior officers, other than senior officers reported as members of theAccountable Authority, whose total fees, salaries and other benefits for the financial year, fallwithin the following bands are:
$150,001 - $160,000$160,001 - $170,000$170,001 - $180,000$180,001 -$190,000$190,001 - $200,000$200,001 - $210,000
2015
o
o
1
o
o
2
2014
1
o
o
1
1
o
Base remuneration and superannuationAnnual Ieave and Iong service Ieave accrualsOther benefits
The total remuneration of Senior Officers is:
509
(20)77
566
486
(22)74
538
The total remuneration included here represents the superannuation expense incurred by theBoard in respect of senior officers other than senior officers reported as members of theAccountable Authority.
34
BUILDING AND CONSTRUCTION INDUSTRY TRAIN?NG BOARD
Notes to the Financial Statements
For the year ended 30 June 2015
30 Remuneration of Auditor
Remuneration payable to the Auditor General for the financial year is as fo)Iows:
Auditing the accounts, financial statements and performance
2015
$000's
36
2014
$000's
34
Expenses are included in 'Other Expenses' at note 1 1
31 Related Bodies
There are no bodies associated with the BCITB which would constitute that of a related bodyaccording to the disclosure requirements of the FMA.
32 Affiliated Bodies
There are no bodies associated with the BCITB which would constitute that of an affiliated bodyaccording to the disclosure requirements of the FMA.
33 Supplementary Financial lnforrnation
During the financial year, there were no write-offs of public property approved by the Minister,losses of public moneys or property through theft or default or giffs of public property providedby the Board.
34 Equity
Equity represents the residual interest in the net assets of the Authority. The Government holdsthe equity interest in the Board on behalf of the community. The asset revaiuation surplusrepresents that portion of equity resulting from the revaluation of non-current Assets.
35
