2011
ANNUAL
REPORT
Annual Report 2011
1
OUR VISION
Leading the way in education and training to inspire
success and transform lives.
OUR PURPOSE
Chisholm Institute excels in education and training
and is respected and valued for enhancing the social
and economic futures of individuals, industry and
communities.
OUR VALUES
• Making a difference through learning
• Integrity and respect
• Excellence
• Service and relevance
• Diversity
• Sustainable practices.
Welcome
About this Report
4
About Chisholm
5
Board President Welcome
6
CEO Report
8
2011 Highlights
10
Our Organisation
Statistical Overview
21
Board
23
Chisholm Directors Group
29
Governance Report
34
Social Responsibility
41
Financial and Compliance Information
Financial Overview
44
Chisholm Institute Financial Reports and Performance
Statements
50
Caroline Chisholm Education Foundation Report
100
Caroline Chisholm Education Foundation Financial
Reports
107
Compulsory Non-Academic Student Fees
118
Activity Table
119
Financial Performance against Budget
121
Chisholm 2011 – 2014 Targets
122
Disclosures Index and Additional Compliance Reports
123
Acronyms
142
Annual Report 2011
3
About this Report
In the preparation of this report Chisholm has followed the reporting
guidelines issued by Skills Victoria, Department of Education and
Early Childhood Development. This report is based on the model
annual report issued with these guidelines, in accordance with the
Financial Management Act 1994, Australian Accounting Standards,
Statement of Accounting concepts, authoritative pronouncements
of the Australian Accounting Standards Board and other legislative
requirements.
This report also includes details of the operations of the Caroline
Chisholm Education Foundation and an audited financial report for
the foundation. The Caroline Chisholm Education Foundation is a
controlled entity of the Chisholm Board.
All financial information presented in this report is consistent with
the audited financial report for Chisholm and the Caroline Chisholm
Education Foundation.
Queries in relation to this report can be addressed to:
The Chisholm Institute of TAFE (Chisholm) 2011 Annual Report is a
report to the Parliament of Victoria required under Section 45 of the
Financial Management Act 1994. The report contains a report on
the operations of Chisholm during 2011, audited standard financial
and performance statements and other information required under
Director, Corporate Services
Chisholm Institute
PO Box 684
Dandenong VIC 3175
E [email protected]
Standing Directions of the Minister for Finance under the Act (Section
Further information about Chisholm can be obtained on Chisholm’s
4 Financial Management Reporting) and the Financial Reporting
internet homepage chisholm.edu.au
Directions given under that Act.
4
Chisholm Institute
Maria Peters
Grant Radford
Chief Executive Officer
Chief Finance and Accounting Officer
29 February 2012
29 February 2012
About Chisholm
Chisholm’s vision is to lead the
way in education and training to
inspire success and transform
people’s lives. At any one time
there are more than 40,000
people developing skills at
Chisholm’s six campuses in the
southeast of Melbourne, at
workplaces throughout Victoria
and Australia, and overseas.
Chisholm is a Victorian
Government institute of
technical and further education
established under the Education
and Training Reform Act 2006.
The responsible minister is The
Hon. Peter Hall, MLC, sworn in
as Minister for Higher Education
and Skills. Chisholm was named
in 1998, in honour of Caroline
Chisholm, the early Australian
reformer and humanitarian.
The Institute has grown
significantly and has become
a multi-sectoral Institute
delivering a broad range of
education and training program
and services in higher education,
VET and school sectors across
its campuses, online, in the
workplace and overseas
with partner educational and
government organisations.
Currently, Chisholm offers
Chisholm also conducts
Chisholm is a proud, public
over 500 certificate, diploma,
over 300 short courses for
institute that has as its purpose
advanced diploma and graduate
industry compliance and skills
to excel in education and training
certificate courses. It now offers
development, as well as self-
and be respected and valued
places across three Chisholm
improvement and recreation.
for enhancing the social and
degree programs: Bachelor
of Community Mental Health,
Alcohol and Other Drugs;
two streams of a Bachelor
of Engineering Technology;
and Bachelor of Interactive
Media Design as well as higher
education programs with partner
universities.
Chisholm serves one of the
state’s most culturally diverse
economic futures of individuals,
industry and communities.
and fastest growing regions in
southeast Victoria, with modern
training facilities in Dandenong,
Frankston, Berwick, Cranbourne,
Mornington Peninsula and Bass
Coast.
Annual Report 2011
5
Board President Welcome
Given the uncertainty of the year and the significance of market
response, ongoing policy changes and funding cuts, the Board
focussed on the impact of operating in a fully contestable funding
environment. To this end, the Board’s emphasis for the year was on
working with Institute management to respond to these challenges
with the aim of strengthening the Institute’s ability to meet future
demands and adapt to the changing environment – new measures,
new dialogues and new planning needed to occur.
The Board’s Chisholm Strategy 2020 is an acknowledgment of the
significance of setting long term strategic directions for the Institute.
Chisholm 2020 provides vision, purpose and strategic directions
for the Institute that reflects the education and training needs of
its principal catchment in the southeast of Melbourne, its industry,
businesses and communities.
In 2011, Chisholm continued its journey towards the achievement of
the Board’s longer term 2020 vision that resulted in the finalisation
and achievement of the strategies and outcomes of the three year
Institute Strategic Plan of 2009 – 2011. A major focus for the Board
On behalf of the Chisholm Board, I am proud to introduce Chisholm
was to develop a new strategic planning framework to reflect the
Institute’s 2011 Annual Report. The 2011 report reflects Chisholm’s
current tertiary context, building enduring industry and educational
commitment to deliver quality, responsive and innovative education
partnerships and positioning Chisholm as a leading public tertiary
and training for its students and in partnership with industry,
provider in Victoria.
government and its wider communities.
The Board has embraced a new vision and purpose to ensure
This annual report reflects the governance, strategic initiatives,
ongoing success is underpinned by a robust and forward-thinking
financial management and key operations undertaken during 2011.
2012 – 2014 Strategic Plan. It is this new vision that has marked the
2011 was a challenging but successful one for Chisholm. In the first
year of full contestability in the VET training market, Chisholm achieved
growth in government subsided education and training, returning a
beginning of a strategic research process to revitalise the Institute’s
brand as Chisholm looks to build its reputation and achieve further
market growth and success in 2012.
strong operating surplus. Chisholm’s performance remains strong while
As a Board, there has always been a strong and professional focus
refocussing the direction of the Institute in this changing environment.
on our governance responsibilities and this has been even more
In 2011, Chisholm’s record as a proud, quality public provider was
reflected in it having the highest level government funded enrolments
and the largest number of students undertaking government subsidised
education and training in the state. A focus of the Board also was for the
Institute to build its commercial business and though there were some
pleasing results in new overseas markets and in building reputation in
international project work, this remains a priority for 2012.
important in the current changing and complex VET, tertiary and
commercial environment. The Chisholm Board continued throughout
2011 to ensure that the Institute retain its benchmark in governance
by focussing on its strategic role and positioning Chisholm within the
rapidly evolving education and training environment. In 2011, the Board
held two key planning workshops and continued an ongoing program
of informing itself of policy change, key trends and research related to
its region as well as engaging with key stakeholders on strategic topics
aimed at dealing both with immediate and longer term challenges.
6
Chisholm Institute
The Board also farewelled a long standing board member in 2011.
I would like to express my gratitude to my fellow Board members for
I would like to take this opportunity to recognise the contribution
their commitment to Chisholm and their continued support to me as
made to Chisholm Institute by Meg Collins-Hughes who did not seek
Chair throughout the year. In particular, sincere thanks are due to the
reappointment to the Board following her current term expiring in
chairs of the three board committees who ensured the completion of
September 2011. Meg has been a long serving Board member who
the committees’ demanding work schedules. The success Chisholm
first joined the Board in April 2003. Over her years of dedicated
has experienced over this last year is testament to the dedication and
service Meg served as Board Chairperson for two years and also
hard work of the Chisholm staff, managers and the executive team. I
chaired the Strategic Development and Monitoring Committee. In
wish to commend CEO, Maria Peters whose leadership, focus and hard
the period of Meg’s service on the Board, she oversaw a significant
work during these challenging times, continues to ensure Chisholm’s
period of change and established a long term vision for Chisholm
ongoing success and to push the organisation forward so that it will
through the development of Chisholm 2020. Meg was also the Chair
thrive in the future.
of the Caroline Chisholm Education Foundation Board and was a
passionate supporter of its establishment. She also made significant
contribution to the broader sector through her role on the Victorian
TAFE Association Board for a period of six years. On behalf of the
Board, I would like to thank Meg for her leadership and commitment to
Chisholm over the last nine years.
2011 saw Chisholm continue its responsibilities as a strong public
provider and fulfilling its community service obligations. Though there
are many projects, initiatives and participation in local community
events by both students and staff to reflect this; this is no better
demonstrated than through the work and success of the Caroline
Chisholm Education Foundation. In 2011, the Foundation awarded
The year ahead will continue to present new challenges for a large
metropolitan TAFE institute such as Chisholm. Policy changes and
likely changes in funding levels will require the continuation and
constant appraisal of the operations and strategic directions of the
Institute. As a Board, we will continue to ensure that we can meet and
address these and endeavour to successfully meet our obligations to
government.
I look forward to continuing to lead the Board to achieve the goals
outlined in our Strategic Plan, to maintain and build Chisholm’s
leadership through education and training and pursue excellence in all
that we stand for and do in 2012 and beyond.
198 grants that included scholarships, bursaries and special projects
such as the CREW@Chisholm program and the Bass Coast Travel
Grant. All the awarded grants afforded many students an opportunity
to undertake study that they may have not been otherwise able to
because of personal and financial barriers.
I would also like to acknowledge the significant contribution of state
and federal governments to our capital development in 2011. This
has included a number of key capital projects including the completion
David Willersdorf
Board President
29 February 2012
of the Automotive and Logistics Centre at Dandenong, the opening
of a major industry flagship, the Centre for Sustainable Water
Management and the first Trade Training Centre built on Chisholm
land with our partner schools, DREAM. The Board is committed
to improve the facilities at each of its campuses and it made a
considerable contribution to these facilities. The Board will continue to
build funds to reinvest in capital and other key projects that enhance
the learning experience for our students.
Annual Report 2011
7
CEO Report
characterised by disadvantage, cultural diversity and disengaged
youth requiring a range of blended learning options and skill
recognition for existing workers and industry.
In addition, we have maintained a strong commitment to our corporate
social responsibilities and our community service obligations as a
public provider. Many students and staff have contributed their time
and skills by being involved in key community projects, supporting
disengaged and disadvantaged groups as well as giving their time to
a range of community, business, education and planning committees
and events, all of which made a difference, provided improved access
to opportunities and strengthened our communities.
As a major public metropolitan training provider, Chisholm faced
fierce training competition throughout the year across our regions of
southeast Melbourne and Bass Coast. However, we managed to grow
our Victorian Training Guarantee funding and to record the highest
level of enrolments and student numbers in the state.
2011 saw a rebuilding of the Institute’s fee-for-service products and
2011 was another good year for Chisholm and it is with great pleasure
services and the development of a new commercial business growth
that I share and acknowledge our achievements and successes.
plan where the focus is to maintain existing and build new, enduring,
commercial partnerships. Despite the challenges facing international
2011 was the first year of Chisholm operating in a fully market-
business, Chisholm had success in developing new overseas markets
driven education and training environment and with it came many
and international project work. Our students also had the opportunity
challenges. I am proud to state that overall the year was a successful
to undertake research, study and work overseas as part of their
one in many areas. It also was the year in which the Institute initiated
programs offering them an exciting international experience.
areas of improvement that in the longer term will build on the
Institute’s reputation with its students and customers; strengthen our
position in the VET sector; and ensure our ongoing success.
rates in education and training in the state, a major focus in 2011 was
Throughout this annual report you will read the many highlights and
We have continued to diversify our programs and shift our focus,
achievements of our students and staff from across the teaching and
becoming a tertiary institution and a major tertiary destination for
support areas, as well as the many valued and effective partnerships
students in the southeast.
that have been fostered with schools, universities, industry, community,
government and international clients. These examples reinforce
Chisholm’s position as a leading and well respected TAFE institute in
Victoria. We believe partnerships and relationships that bring mutual
to work in partnership with schools and universities to build aspiration.
We have implemented a comprehensive tertiary strategy that includes
enhancing our degree offerings either through offering our own
degree programs, by offering our partner degrees or by having a range
benefit and that strengthen our communities are important.
of guaranteed pathways offered at Chisholm or at nearby partner
Chisholm’s strong track record and commitment to individuals,
offered our first degree in 2011, the Bachelor of Community Mental
communities and industry has continued with a greater focus on
Health, Alcohol and Other Drugs and had two new degrees accredited;
innovation, flexibility and responsiveness to all clients resulting in
the Bachelor of Interactive Media Design and two streams of a
growth and financial success. We have maintained our commitment to
Bachelor in Engineering Technology.
our core business – the provision of quality, responsive and relevant
education and training for industry as well as the broad spectrum
of service and community organisations across our region. We have
continued to plan programs that meet local employment and career
opportunities in our region and to offer innovative programs and
services that meet the needs of our student cohort. This cohort is
8
As Chisholm’s principal catchment has one of the lowest participation
Chisholm Institute
locations to provide seamless tertiary options for our students. We
Building strong education pathways and partnerships was important
in 2011. Chisholm plans to offer, in partnership with La Trobe
University, the Bachelor of Accounting where entry to the program
is guaranteed on successful completion of Chisholm’s Diploma of
Accounting. Productive dialogues commenced with Swinburne
University to offer Chisholm graduates in selected courses a
The success achieved in 2011 was largely due to the staff and the
guaranteed place and advanced standing in many of their linked
leadership across many levels of the organisation. Staff at Chisholm
degree programs. The Deakin at Your Doorstep program continued to
bring their minds, hearts and souls to work each day together with
successfully operate at our Dandenong campus and expanded to our
professional expertise and invaluable experience. Throughout
Mornington Peninsula campuses in children’s services and over 70 per
2011, given the level and complexity of change, our staff remained
cent of Chisholm diploma and advanced diploma courses now have
committed to the Institute’s vision and values and were focused on
formal pathways agreements into higher level courses at Chisholm or
the core reason for our existence – to provide quality education and
with our university partners.
training and exemplary services and put our students and industry
Chisholm has continued to strengthen its relationship with Monash
partner needs first.
as the major university in its region and to build programs and
During 2011, a number of staff retired or left the organisation and
pathways for our students. This is best illustrated at Berwick where
I would like to acknowledge the contribution of these staff. I wish
the collaboration saw a number of guaranteed pathways available for
to once again extend my thanks to all staff for their individual and
Chisholm students who met entrance requirements in nursing, health
collective contributions to the success of our students in their
promotion and social welfare.
learning and experiences at Chisholm, for developing effective and
A new Chisholm 2020, a Planning Framework for 2012 - 2014 and
a revised Chisholm Strategy were endorsed by the Board and will be
enduring relationships with partners and clients and for meeting many
of the challenges of 2011.
launched in 2012. This builds on the groundwork and impetus gained
I also wish to acknowledge the contribution of the executive and
from the previous strategy. In addition a more succinct and aspirational
management teams who often work above and beyond expectations.
vision and new purpose was developed as well as making the
language of the three strategic directions: Institute of Choice, Partner
of Choice and Workplace of Choice clearer and more meaningful.
The Institute Strategy 2012 – 2014 is clear and simplified with only
two plans, Teaching and Learning, and Organisational Growth and
Sustainability. The Framework more strongly links teaching and learning
to the Board’s vision and directions as well as requiring departments to
form a 2014 vision and state key 2012 focus and actions. All plans of
the Institute are solidly linked, from the Board to the actions of staff, in
I would also like to acknowledge our industry and community partners
during 2011, which is fundamental to the ongoing success of the
Institute.
Chisholm continues to have a board that works together to offer
strong strategic leadership and advice. I would like to thank all of the
members of the Institute Board for their leadership, expertise and
commitment throughout the year and express my appreciation of the
support and guidance of the Board Chair, David Willersdorf.
realising the Institute’s vision. To reflect a new vision and new strategic
For Chisholm, 2011 was a year of significant change and in many
plan, the Institute embarked on a strategic process and research to
ways preparing and positioning the Institute to be able to respond
revitalise its brand which will be launched in 2012.
to government expectations and any further changes likely to result
The revised Chisholm Strategy and refreshed brand demonstrate
Chisholm’s preparedness to operate in a fully contestable tertiary
environment; its alignment to government policy and priorities; and
the provision of a framework to assess program provision and services
to position the Institute to realise a strong future.
from external factors. As we move forward, our continued success in
the increasingly competitive marketplace will rely on our continuing
capability to provide students with high quality education and training,
along with our continued focus to implement customer-focussed
practices. We are still on a journey at Chisholm and I am confident
that the work undertaken during 2011 positions Chisholm to face the
Chisholm now operates across three key educational sectors to meet
future and contribute as a leader in the VET and emerging tertiary
government policy and the needs of its region – senior secondary,
sector. Chisholm is well positioned to look forward to 2012 and
vocational education and training and higher education. As a result,
beyond with a high level of confidence.
Chisholm is now a very large and complex organisation. To support
this we began to implement a new effective and transparent internal
communications strategy, I matters and a strong focus on being a
workplace of choice including a new approach to recognition and reward
largely driven by staff. This will continue to be a major focus in 2012.
Maria Peters
CEO
Annual Report 2011
9
2011 Highlights
New education and training facilities National
Water Centre
CEO Maria Peters and The Hon. Anthony Byrne
Chisholm’s National Water
Resource Training Facility
at Cranbourne was officially
opened by The Hon. Anthony
Byrne, Federal Member for
Holt. The $8.2 million new
multipurpose facility includes
a pioneering water treatment
plant, a water quality testing
lab, industry research and
development area, recycling
programs and controlled
environment horticulture facility.
As well, an undercover training
space accommodates heavy
machinery, allowing students to
get hands-on experience with
earth moving plant equipment
and be taught civil construction
skills, such as pipe-laying,
trenching and shoring.
Automotive and Logistics Centre
Training Centre to be constructed on Chisholm and Frankston Council
commence training in 2012.
land at the Samuel Sherlock Reserve has commenced its planning
DREAM for the future
during 2011. The 13 independent and Catholic schools consortium
received council support and has commenced work on developing an
innovative regional trade training model.
The first Trade Training
This new Trade Training Centre will provide students from Years 9 to
Centre, DREAM, a consortium
12 with access to vocational education and training, giving schools
of five schools and Chisholm,
a broader range of options to improve Year 12 retention rates and
was constructed in 2011 at
enhance pathways into vocational careers.
Chisholm’s Dandenong campus.
The facility designed to meet
Chisholm hosts another Trade Training Centre with school partners
Chisholm enhanced its
the VET learning needs of
reputation as a leading
young people reflects a range
automotive and logistics
of innovative learning areas,
training provider in Victoria
including building, electro-
with completion of a new
technology, engineering, hair
Automotive and Logistics Centre
dressing and beauty therapy. Of
at its Dandenong campus. The
significance in the facility is the
$15 million training complex
technology centre which aims to
hosts the latest technology
create innovative thinking and
and features a full diagnostics
design with our young students.
laboratory, natural gas fired infra
Delivery will commence in 2012.
aspirations of young people to encourage engagement in lifelong
Finally a
START up
further study. One of the sites is at Chisholm’s Mornington Peninsula
The School TAFE Alliance for
Secondary College which will provide training to meet the needs of
red paint curing system, body
repair workshops and more.
Major sponsorship agreements
with Sidchrome, Bosch, Lucas
Nuelle and Lowbake have been
10
secured and students will
Chisholm Institute
Regional Training (START) Trade
The Southern Peninsula Trades Training Centre (SPTTC) was
developed with a consortium of six schools in the Mornington
Peninsula, with the aim to increase access for young people to high
quality technical training. This consortium successfully applied for
funding under the Australian Government’s Trades Training Centre
in Schools Program. The SPTTC will have two sites and has as its
main goal to bring together the needs of the local economy and the
learning. Courses to be offered will also have clear pathways to
campus and will offer industry standard training in carpentry, allied
health and electro-technology. The other site is at Somerville
the local plumbing industry.
New
degrees
Building higher education at Chisholm
Engineering
Pathways
to higher learning
Pathways,
credit and a place
An exciting partnership
Most Chisholm diploma
between Chisholm and
graduates would expect to
La Trobe University
get some level of credit into a
was established to give
bachelor degree in the same
students a pathway
industry or discipline area. In
to university level
2011, Chisholm tackled the
qualifications. A unique
next step in creating reliable
Interactive media design
three-year degree
and robust learning pathways
The Bachelor of Interactive Media Design, the third Chisholm degree
program has been
for graduates. For Chisholm’s
developed where a first-
three bachelor degrees,
year TAFE accounting
diploma and advanced diploma
qualification is combined
graduates who meet the entry
with a further two years
criteria are assured of a place
of university study to
under The Chisholm Guarantee.
​Chisholm’s Bachelor of Engineering Technology degree was accredited
and launched as a specialist degree that responds to the needs of the
manufacturing industry. The first of its kind in the VET sector, study
focuses on the technology, its application, system operation and the
development and maintenance of plant and equipment. The degree to be
offered at Dandenong in 2012 has been developed in partnership with
Engineering Australia (Victoria), the South East Melbourne Manufacturers
Alliance Inc. (SEMMA), and South East Business Networks (SEBN).
to be developed, was accredited in 2011. Chisholm’s commitment to
engagement with industry will ensure graduates of the degree have
the knowledge and skills vital to a rapidly expanding design and visual
communication field. The degree is driven by trends of converging
and rapidly emerging technologies, with graduates expected to enter
industry with both print-based design skills and knowledge and
capabilities in the design and interactive media functionality. Chisholm
graduates will have the distinct advantage of heralding the combined
skills of a graphic designer and a web/interactive media designer. The
first intake will commence in 2012.
complete the Bachelor
of Accounting. Both
Chisholm and La Trobe
University are committed
to ensuring that worldclass education programs
Community health
are accessible in the
The Bachelor of Community Mental Health, Alcohol and Other Drugs
they operate, with 32
degree developed by Chisholm to meet the growing demand for
enrolments commencing
people with the appropriate knowledge, skills and attitudes to work
in 2012.
across the spectrum of community-based mental health and alcohol
and other drugs (AOD) treatment services had its first intake in 2011
with a total 32 students across first and second year. The majority of
students were existing workers.
communities where
In addition, Chisholm now
has formal Memoranda
of Understanding (MOU)
with three universities
that guarantee places
with advanced standing in
nominated bachelor degrees.
With La Trobe, Chisholm’s
Diploma of Accounting
graduates have a place in the
Bachelor of Accounting. With
Monash, Chisholm graduates
from community services
and health courses can apply
for reserved places in three
In 2011, Chisholm’s three bachelor degree courses, gained CRICOS
Monash bachelor degrees
registration for the courses to enable their promotion and delivery to
at Berwick campus. And in
international students.
the first stage of ongoing
To build our tertiary offerings, there was a focus in 2011 to build the
range of graduate programs offered at Chisholm. Vocational graduate
certificates were developed in digital marketing, family violence work,
community services practice (client assessment and case management)
and the Vocational Graduate Certificate in Eco Tourism Management also
negotiation, graduates from
10 Chisholm diplomas are
guaranteed a place in a range
of linked bachelor degrees at
Swinburne.
launched in 2011, with the involvement of Phillip Island Nature Parks.
Annual Report 2011
11
2011 Highlights
Working in
Partnership
Dr Duncan Sutherland,
Phillip Island Nature Parks
Milestones with key partners
significant milestones in 2011. Chisholm is responsible for training
On-the-job
management training all Australian Defence Force (ADF) cooks and stewards, a training
Strong on-the-job management
Chisholm aims to form enduring partnerships. Two of these reached
partnership which extends beyond 13 years. In addition, Chisholm
training was a focus in 2011.
has reached a seven-year milestone in its partnership with Toyota.
Chisholm continued its successful
Chisholm continues to deliver the Advanced Diploma of Engineering in
partnership with Volunteer Fire
Technology (Mechatronics) at Toyota’s manufacturing plant at Altona.
Brigades Victoria (VFBV) by
Chisholm has two specialist engineering teachers on location at
delivering another certificate
Altona on a full-time basis to deliver the program to selected Toyota
in frontline management as a
employees in the highly specialised area of mechatronics and robotics.
Essential services
by Darley. The investment
BlueScope
training by the VFBV to enhance the
specific programs across the government essential services sector
The Institute made a strong
are involved in such important
to support the development of the sector in the area of training and
response to the needs of
community service work also
assessment. Strong relationships have been developed and culminated
staff at BlueScope through
acknowledges the benefits for
in the delivery of numerous programs to Victorian State Emergency
provision of counselling career
local communities going into the
Services including complete qualifications, skills sets and recognition
advice, skills recognition and
future. Groups of staff in the
programs to both career members and volunteers. Approximately
customised courses to assist
workplace at Grenda, EPA, Skilled
150 people participated in the programs which has facilitated the
transition to allied or alternative
and City of Greater Dandenong
implementation of best practice and improved processes to ensure
employment opportunities. An
were trained in management
members are better equipped to provide emergency service.
example of the relationship with
qualifications.
The Professional Development and Learning Department are building a
niche market by developing and implementing customised and sector
Workplace school-based apprenticeships at Jayco
Chisholm delivered the Certificate III in Recreational Vehicle
Manufacturing in the workplace to two groups of school-based
apprentices at Jayco. Jayco is the largest manufacturer in the
Dandenong region with over 900 employees. Jayco, like Chisholm,
has excellent links with local secondary colleges and has sourced its
apprentices from local schools in the Dandenong region.
12
scholarship program sponsored
BlueScope, industry, Department
of Education, Employment and
Workplace Relations (DEEWR)
and Skills Victoria was a
specifically designed intensive
training program to support
industrially skilled BlueScope
staff in compliance skills that
would allow entry into work
opportunities in both the civil
Milwauki partnership
construction and mining sectors.
Chisholm signed a partnership with Milwaukee Electric Tool Corp.,
the Civil Contractor Federation,
giving the Institute’s plumbing students the latest tools from the
the peak employer body with
leading manufacturer. Milwaukee Electric Tool Corp. is an industry-
over 2,000 company members,
leading manufacturer and marketer of heavy-duty, portable electric
and Skills DMC (Drilling Mining
power tools and accessories for professional users worldwide. The
and Civil) who represent the skills
partnership allows students to use the latest in portable electric
training needs of the resources
power tools.
and civil industries.
Chisholm Institute
The program was endorsed by
leadership capability of Country
Fire Authority volunteers who
School
partners
Chisholm signed a key MOU with
Pakenham Secondary College
to work more collaboratively to
assist the school lift retention
and completions. The primary
focus of the MOU is to develop
program offerings, linked to local
needs, and identify possible
infrastructure developments. In
addition, the Institute supported
program design and industry
research for secondary school
development programs, with
four partner schools, Western
Port, Pakenham, Monterey and
Hampton Park.
Australia in a one-day workshop
Mornington Peninsula
hairdressing students
to provide experiences,
perspectives and solutions as
input into the formation of a
Respect Agenda focussed on
young people and their views
around community respect. The
development of this agenda
was made possible through
a $50,000 grant awarded to
Scouts Australia. Chisholm’s
work with a range of young
people through its TEC, was
recognised by Scouts Australia
and input sought to inform the
development of this key piece
of work. Staff and students
engaged in discussion and
responded to questions around
Phillip Island partnership
14 part-time students in 2008
finally for Chisholm staff the
to 120 graduates in 2011. The
partnership increased industry
growth reflects Chisholm’s
currency, professional growth
In 2011 Chisholm and Phillip
ongoing commitment to giving
and modelling by developing
Island Nature Parks launched
people access to skills and
positive relationships with
a unique vocational graduate
qualifications that allow them
students and child care centres.
certificate designed to respond
access to greater career pathways.
issues such as violence and
bullying, and were given the
opportunity to outline their
views and experiences and to
propose solutions for the future.
The Early Childhood Education
developed in 2011 working to
department developed a
support and partner Scouts
Skill shortages and skilled migration
industries panels
partnership with 17 Good Start
Victoria. Chisholm delivered
Chisholm is strongly supporting
Child Care Centres to create an
leadership program outdoor
the Department of Business
effective placement system
leadership training and the
and Innovation’s (DBI) Skilled
which supports and is beneficial
Mental Health First Aid
and Business Migration program.
to all parties – students, Chisholm
program to 12 members of
Chisholm was invited to be
teaching staff and centre staff.
Scouts Victoria. Chisholm also
an industry panel member in
The benefits for students
commenced a state-wide
the manufacturing area which
included additional support and
recognition process against
has been identified under this
mentoring, developing best
accredited qualifications and
Existing workers moving into
management
initiative as experiencing specific
practice quickly and having
Berwick TEC students used their
skills shortages in the labour
transparent and immediate
newly developed building and
market. Chisholm’s role is to
student participation in the
construction skills to build new
assist in the skills recognition
centre; for centre staff there
recreation facilities at Gilwell Park.
and assessment of applicants’
The School of Business,
established to give existing
with TAFE staff to support
workers of the southeast access
improved centre practices as
to management jobs through
well as accessing professional
Collaboration
on a Respect
Agenda
curriculum vitaes in the areas
they were able to work collegially
graduate programs, grew from
information and training and
to international and local
visitor demand for Australia’s
nature-based tourist operations.
The Graduate Certificate in
Ecotourism is the first higher
qualification to combine the
science of ecotourism with
business management to give
graduates a greater knowledge,
understanding and appreciation of
the economic and environmental
factors required to operate a
successful and sustainable
ecotourism organisation.
A three way
benefit
was less demand on their time,
Scouts and Chisholm Several new opportunities
The Berwick TEC staff and
of fabrication and metals and
mechanical trades including
post trade qualifications
assessments.
students worked with Scouts
Annual Report 2011
13
2011 Highlights
Winners
Outstanding Apprentice of the Year,
Matthew Chick with Chisholm Board President,
David Willersdorf and Phil Hayes from Okuma
Dandenong Chamber of
Commerce Youth
Enterprise
Award
Automotive apprentice Kelly
Byford won the prestigious
Dandenong Chamber of
Commerce Youth Enterprise
Award at the Chamber’s Business
Enterprise Awards ceremony in
front of 800 business guests
at the Crown Palladium in
March. Kellie also displayed her
consummate skills in public
speaking in giving the key note
address at Chisholm’s Apprentice
Outstanding Vocational Student of the Year, Diploma of Youth Work.
Engineering apprentice
interviewed on
ABC Radio
Both of these students were exemplary in their studies, were leaders
Chisholm mechanical engineering
in their classes, supportive of their peers, and demonstrated real
apprentice Matthew Chick
passion and commitment for their career field. We are confident they
was interviewed by ABC Radio
will be successful in their future endeavours. Electrical Apprentice
talk-show host Richard Stubbs
Teacher, Stuart Blamey was nominated for, and won, Chisholm’s
about life as an apprentice and
Outstanding Teacher of the Year Award. Stuart, as well as being an
quizzed Matthew for over 40
exemplary and committed teacher, took a strong personal interest
minutes on-air on key issues and
in ensuring apprentices that have difficulty with their studies were
challenges facing apprentices.
offered additional support for better outcomes.
Matthew was one of over 400
The annual Chisholm award winners in 2011 were worthy recipients
and we are proud of their achievements. The student winners were
Matthew Chick, as the Outstanding Apprentice of the Year Certificate
III Engineering (Mechanical) and Clorinda Siemienowicz as the
Doncaster BMW and her career
goal is to start her own business.
Kelly was also selected as a
candidate for the Commonwealth
Government’s Today’s Skills
Tomorrow’s Leaders 2009
program where she met with Julia
Gillard to discuss the issues faced
by apprentices.
Culinary
competition
Chisholm hospitality students,
Chisholm and is a remarkable
Will Whitby and Rohan Smith
and switched on 22-year-old
won the second and third-year
young man who previously won
apprentice categories in the
Chisholm’s Apprentice of the
Hospitality Training Network’s
Year Award and now works for
National Culinary Apprenticeship
Garry Rogers Motorsports in
Competitions.
overawed by the circumstances
at all and answered Richard’s
sometimes tricky questions on a
federal government report into
apprenticeships like a radio pro.
Chisholm Institute
completed her apprenticeship at
engineering apprentices at
Dandenong. Matthew was not
14
and Trainees Awards Evening. She
It was another successful year where students, individually or in teams, and staff
achieved remarkable things during 2011.
Manufacturing Engineering Skills Advisory Board (MESAB)
Training Awards
She’s got the ‘IT’ factor
Hair and beauty talents
Business IT student Allison
Sharna Heitman, a Diploma of
Kirby achieved a perfect score
Beauty Therapy Student won
The 2011 MESAB Training Awards were held in May, with a Chisholm
in 22 minutes and 28 seconds
the HBIA Award for the Diploma
of the allowable 50 minutes in
of Beauty Therapy category and
the Microsoft Office Specialist
was nominated for the City of
certification exam. Now Allison
Greater Dandenong Chamber
has been nominated for the
of Commerce - Youth Enterprise
Microsoft Office worldwide
Award. In the WorldSkills
competition in 2012. The top
Regional Competitions, Chisholm
graduates in each country will
student Sarah Hensley won gold
meet in Las Vegas for a world
in the Beauty Care Category and
challenge. Allison, who studied
Kirsty Stanley won a bronze in
the Certificate IV in Library/
the Hairdressing Category.
Manufacturing Engineering and Logistics Department staff member
and student being recognised for their achievements. Samuel Pop,
MEL Technical Support Officer at Frankston won the Young Industry
Ambassador Award. Sam was selected based on his eagerness and
enthusiasm as an ambassador to present his fitting and turning trade
and manufacturing to secondary school students. Christopher Wright,
a mature age student and a qualified motor mechanic, won the TAFE
Student of the Year Award. Christopher has completed his Advanced
Diploma in Engineering Technology with high distinction. Striving to
better himself in his field, Chris is a technical writer for an engineering
company and eventually wants to complete an engineering degree.
Information Services full-time
Emilie’s scholarship is ABC
of two teenage children with
Chisholm graduate Emilie Abad has won the third 2010 ABC Women in
Broadcast Technology Scholarship. The Scholarship, instigated by the
ABC to encourage the participation of women in the engineering and
technology sides of the broadcasting industry, included four weeks
paid on-the-job training at the ABC and a $1,000 book allowance.
at Cranbourne, is also a mother
after school activities. The
Microsoft certification is offered
as a bonus with the course.
Overall about 260 people
have completed the vendor
certification exam in 2011.
Small business training reaps rewards At the 2011 National NEIS
Awards, the Best Growth
Business was awarded to
Airflow Mechanical Solutions,
one of the small businesses
trained under the NEIS program
at Chisholm.
Widely read
Dr. Anita Milicevic, Higher
Education Coordinator, Bachelor
of Community Mental Health,
Alcohol and Other Drugs, had her
paper, Refugee trauma worse
than war trauma, published in
the Wall Street Journal among
other publications globally.
Her aim when writing the
thesis was to develop more
Emilie,
second from left,
with colleagues
effective responses to refugee
settlement challenges and help
improvement of public policies
on refugees in Australia.
Annual Report 2011
15
2011 Highlights
Educational Initiatives
Pathways for young people Apprentices also received a free 12-month student membership
Creative project-focussed and client-specific delivery for youth was
on tools, cars and fuel. Apprentices also have access to a dedicated
focus for the access area in 2011 with the Freshstart initiative and
expanding the Xpress program to Frankston. Both of these programs
were a great success, building the confidence and self belief of the
youth involved, with participants confirming pathways either back to
secondary schools or onto a mainstream TAFE program.
with MBAV, entitling them to wage and career advice and discounts
website providing information and support during their apprenticeship.
Bass Coast project
a great success 2011 saw the successful completion of the Victoria Works for job
VCAL a hit!
VCAL children’s services and brick and landscaping students
participated in the SAFET1 state wide rap competition sponsored by
WorkSafe and the Victorian Applied Learning Association. The students
wrote and performed a rap song then produced a video winning the
state wide competition. As prize winners a professional film team came
to Berwick TEC and produced a film clip that was designed by the
students. The resulting video was shown on Channel 31.
seekers with employment challenges project. Over 150 job seekers
participated and were engaged in the project with required job
outcomes achieved two months ahead of the project deadline. The
skills gained will assist the participants to gain employment or provide
them with a strong foundation to continue their lifelong learning
journey.
Valuing LLN in the workplace DEEWR’s Workplace, English Language and Literacy (WELL) area
Apprentices soar
Berwick TEC has seen strong growth in the delivery of Certificate
III in Bricklaying and Block Laying during 2011. A key factor in the
success of this course is the blended delivery model that incorporates
a combination of on-site assessment, online theory and assessment
and practical tasks. This is supported by strong links with industry
to ensure validation of the current course content and to inform
Chisholm if changes are necessary as industry needs change.
Extensive development to continually improve the online resources
continued in 2011 to move the resources from predominately text
model for small to medium sized enterprises to increase awareness
about workplace LLN and how to access WELL funding to address
these collectively (the ENTWINED network) and a major project with
Agrifoods ISC for the development of assessment models which
embedded LLN assessments in competencies from the current
training package.
Chisholm’s new
e-learning framework
based to a more advanced and professional online model that
Under Chisholm’s new e-learning framework, Chisholm’s learning
improves the student’s learning experience and outcomes.
management system is utilising Moodle as its platform for its virtual
Cutting drop-out rates in apprentices
Building and Furniture Program Coordinator, Fraser Dempster,
16
funded Chisholm for two key projects, one to develop a network
learning environment and providing allowing students and staff
individual e-portfolios (using Mahara) and supported by individual
client learning resource repositories (Equella). This will allow for
greater student access from remote and off campus locations.
supported a Master Builders of Victoria (MBAV) program to reduce
Chisholm has also set itself new strategic targets in the development
the drop-out rate of apprentices in the building industry. Fraser
of online learning resources complimenting a broader range of blended
worked with MBAV careers officers to provide Chisholm as a venue for
delivery options for program delivery. Chisholm is also developing
apprentices to access relevant, clear and centralised information, as
its myLearning Student Support Centre to provide all students with
well as developing a MBAV student membership scheme called Alink.
online support for its learning management system.
Chisholm Institute
ESL students at Dandenong
International developments The International Division has made significant headway in
raising Chisholm’s profile with several successful outcomes in the
international arena with some real gains in the project area.
In 2011 Chisholm hosted 13 new international students who were
• Two short courses were delivered for over 26 representatives
from more than 15 African countries on reviewing Australia’s VET
system and reviewing their own TVET systems in the context of
the Australian and other African systems. The course was aligned to
units of the Graduate Certificate in VET and was a great success.
New Caledonia. Australian Development Scholarships are a highly
Chisholm and Hanoi University of Industry
partnership
valued form of development cooperation that aims to contribute to
Chisholm signed a MOU with Vietnam’s Hanoi University to
awarded Australian Development Scholarships to further their tertiary
education. Students were from Papua New Guinea, Vanuatu and
the long term development needs of Australia’s partner countries to
promote growth and stability. They equip scholars with the skills and
knowledge to drive change and influence the development outcomes
of their own country through obtaining tertiary qualifications at
participating Australian higher education institutions and technical
colleges. Scholarship holders are required to return to their country of
citizenship for two years after they have completed their studies to
contribute to the development of their country.
provide education and training abroad. The Institute’s International
Department welcomed the university’s top officials, Rector, Tran Duc
Quy, Vice Rector, Bui Thi Ngan and Dean of Faculty of International
Cooperation and Training, Nguyen Thanh Tung to the Dandenong
campus to discuss plans for the partnership.
An international
beauty partnership
The following AusAID funded projects were successfully tendered
The Institute signed a MOU with Madame Stella Director of the Stella
and undertaken in 2011:
In Beauty Academy, Malaysia defining credit transfer arrangements
• A customised short course on Integrated Water Resource
and pathway opportunities for the academy’s students. Senior staff
Management aligned to the Graduate Certificate in Water
from the academy also accompanied a group of 12 students on a
Leadership Management was conducted in Australia for 20
five-day study tour. The students and staff participated in a range of
professionals from Cambodia. Chisholm in collaboration with Earth
training activities which showcased the Institute’s diploma program
Systems and Entura (Hydro Tasmania) delivered the course that
and its beauty and spa facilities at the Berwick campus.
included a mixture of classroom training and activities, meetings
with key Australian government agencies, and site visits to a range
of catchments in Victoria, NSW, South Australia and Tasmania
Annual Report 2011
17
2011 Highlights
Student experiences
Staff
experiences
Study tour opportunity
students overseas to broaden their experiences. Five students
Staff undertaking International Skills Scholarship (ISS)
travelled to the Netherlands to undertake a research visit titled:
George Yue of the Automotive Department
A most rewarding outcome for 2011 was the opportunity to send
Controlled Environment Horticulture – Developing Skills in Sustainable
Practice. The visit was funded by DEEWR and included being hosted
by internationally recognised companies including Priva, De Lier,
Practical Training Centre, Ede, KWR Water, and World Water Academy
who shared the latest technologies and practices with our students.
skills development project in China, studying
opportunities for students and graduates who
may wish to work in the China in the automotive
business management field.
International structure
workplace learning
Foundation staff
honoured A number of 2011 children’s services students undertook a very
In 2011 a group of over 40 staff came together
successful practical placement extension to enhance their studies
in China. Seven students took advantage of a partnership with ICRO
and the Qingdao Kindergarten in China to undertake a placement of
three months. The students lived and worked in Qingdao, sharing in
the Chinese culture with families. They were able to share with the
Kindergarten Australian early childhood practices and returned with
a much greater knowledge of the Chinese culture and education
system.
and explored how the Institute should recognise
staff service as well as develop a framework
for reward and recognition going forward. A
‘one off’ recognition event for staff who were
foundation employees of Chisholm Institute,
was held in August. The Foundation Employee
Award celebrated employment service at
Chisholm Institute, which came into existence
Southern University Games
on Wednesday 1 July, 1998. As well as
​Students from Chisholm’s Diploma of Sport and Recreation and
those staff had at the predecessor Institute’s
Diploma of Sport Development competed in the Southern University
as well, such as Casey (Dandenong), Peninsula
Games, putting in a strong performance in the basketball, netball and
(Frankston) and Barton (Moorabbin). 2012 will see
tennis competitions.
formal service recognition events being held to
The games were held in Geelong with over 1,600 students
representing 14 different institutions across 15 different sports. Over
2,000 people were involved in the Games.
Chisholm’s teams were selected from only 29 students and competed
against the might of the big universities who conducted selection
trials from thousands of students. Given those circumstances,
Chisholm performed admirably, winning games in all sports, and being
very competitive in others.
18
was an ISS fellow for 2011 undertaking a
Chisholm Institute
acknowledging the contribution and service that
recognise staff with service in key milestones.
New
developments
Chisholm brand
Launch of myJobs
In 2011, Chisholm’s marketing
Frankston. The new careers and employment website, myJobs, was unveiled at Bunurong Restaurant and was
and communication department
attended by many job network providers, employers and current and past students. Students can access full-
began the process of revitalising
time, part-time, apprenticeship and traineeship employment opportunities, with employers able to register their
the Institute’s brand. Extensive
positions; career resources and upcoming careers expos, and employment and industry events.
Chisholm’s Learner and Community Engagement department successfully launched its new jobs initiative at
market research and consultation
within the organisation led
to the development of a new
position within the market and a
refresh of all internal and external
communication. Chisholm will
launch the brand in 2012 with
major updates to the Institute
website and intranet site.
Information
matters A focus in 2011 was to develop
a new internal communications
framework with the emphasis
on listening, dialogue, giving and
receiving feedback and taking
responsibility for follow up and
action. The result was I matters.
This new internal communications
strategy aims to build new
ways of communication with an
emphasis on interaction, with
opportunities to discuss the
impact of government policy,
track Institute performance,
share effective practices and
to collaborate in developing the
cultural changes required to
implement The Chisholm Way.
The I matters framework,
launched in July 2011, is driven by
myJobs launch: Geoff Shaw MP, Member for Frankston, Chisholm’s
Geoff Cousins, Chris Wierzbowski and Chisholm’s Matthew Posetti
staff ambassadors, managers and
leaders across the Institute and
is key to ensuring effective and
transparent communication is a
feature of Chisholm going forward.
Annual Report 2011
19
2011 Highlights
Giving to our communities
Glen Davidson, Course Leader,
Bachelor of Accounting
Social inclusion partnership
Using skills for a good cause
Chisholm and Wallara Australia, a leading provider of support services
Chisholm hospitality staff and students provided front of house and
to adults with a disability in Melbourne, announced their partnership
back of house service to Supported Places Victoria (formerly Vic
aimed at making a real difference to social inclusion. The inspiration for
Urban) in staging the 2011 Food and Wine Festival event for over 600
the partnership was the desire to build stronger pathways for young
patrons hosted at the Dandenong Market.
adults with disabilities into mainstream adult training and to create a
sustainable program to drive social inclusion for people with disabilities.
Shave for Cure – Leukaemia Foundation, participated in key fashion
The key components of the partnership included: young adults from
shows to support the Breast Cancer Awareness Campaign and
Wallara’s Life Options program partnered Chisholm for a jointly run
instigated fundraising events that contributed to supporting grants
program in the Certificate I in Vocational Preparation; the production
and scholarships for the Caroline Chisholm Education Fund.
of a performance for International Day of People with a Disability at
Wallara’s Annual Report to the Community; our Berwick TEC students
(landscape and building) built a sensory garden at Wallara and through
the in partnership valuable workplace experience was available for
Chisholm students studying in the welfare and disability field.
20
Hair and beauty students and staff at Chisholm contributed to the
Chisholm Institute
2011 Statistical Overview
Student Enrolments
2011
2010
Government Funded Accredited Programs
17,986
18,184
Fee for Service Programs
24,110
27,469
(Less) Student enrolments in both Government Accredited Programs and Fee for Service Programs
(1,151)
(1,965)
Total Net Student Enrolments
40,945
43,688
2011
2010
Government Funded Accredited Programs
7,242,723
7,043,783
Fee For Service Programs
3,951,630
4,695,880
Total Student Contact Hour Delivery
11,194,353
11,739,663
Student Contact Hour Delivery
Student Enrolments by Age
2011
2010
Age Group
Student
Enrolments
Per cent
Student
Enrolments
Per cent
Under 15
182
0.4%
67
0.2%
15 to 19
11,279
27.5%
10,900
24.9%
20 to 24
7,986
19.5%
9,539
21.8%
25 to 39
10,365
25.3%
11,280
25.8%
40 to 64
10,796
26.4%
11,550
26.4%
65 plus
334
0.8%
346
0.8%
Not Stated
3
0.0%
6
0.0%
Total
40,945
100.0%
43,688
100.0%
Student Enrolments by Gender
2011
2010
Gender
Student
Enrolments
Per cent
Student
Enrolments
Per cent
Female
16,128
39.4%
17,147
39.2%
Male
24,815
60.6%
26,539
60.7%
Not stated
2
0.0%
2
0.0%
Total
40,945
100.0%
43,688
100.0%
Annual Report 2011
21
2011 Statistical Overview
Course Enrolments and Student Contact Hours by Campus
2011
2010
Course
Enrolments*
Per cent
Student
Contact
Hours
Frankston
14,536
25.5%
3,389,518
30.3%
14,859
Dandenong
14,744
25.9%
3,136,328
28.0%
5,493
9.6%
1,540,626
13.8%
Campus
Off Shore Delivery
Berwick
Per cent
Student
Contact
Hours
Per cent
25.7%
3,367,425
28.7%
17,198
29.7%
3,615,039
30.8%
6,715
11.6%
1,893,031
16.1%
Course
Per cent Enrolments*
4,091
7.2%
1,083,099
9.7%
4,119
7.1%
1,198,745
10.2%
Workplace
12,642
22.2%
891,380
8.0%
10,041
17.4%
557,530
4.7%
Cranbourne
2,246
3.9%
489,692
4.4%
2,165
3.7%
498,270
4.2%
791
1.4%
307,199
2.7%
431
0.7%
259,351
2.2%
Mornington
Peninsula
1,252
2.2%
244,733
2.2%
1,057
1.8%
213,845
1.8%
Bass Coast
623
1.1%
90,392
0.8%
788
1.4%
126,211
1.1%
Online
506
0.9%
21,386
0.2%
458
0.8%
10,216
0.1%
Total
56,924
100.0%
11,194,353
100.0%
57,831
100.0%
11,739,663
100.0%
Berwick TEC
* Individual students can choose to enrol in multiple courses
Financial Measures
2011
$’000
2010
$’000
• Funded Operations (excludes capital grants, loss on disposal of assets, depreciation and
expenditure using capital grants)
7,452
5,611
• Total Operations
6,402
21,802
Total Revenue (includes proceeds from sale of assets)
136,287
154,158
Total Operating Revenue (total revenue less capital)
128,699
128,800
Net Assets Value
219,155
212,344
18,080
17,139
Measure
Operating Surplus for the Year
Working Capital (adjusted for liabilities payable after 12 months)
Sources of Chisholm Operating Revenue*
% Total Operating Revenue
2011 %
2010 %
Government funding from the Victorian Skills Commission
69.4
66.8
Fee-for-service, commercially priced programs and services
19.4
22.2
Student fee and charges
8.7
8.2
Other, including investment interest, donations, trading activities and miscellaneous revenues
2.5
2.8
* Commonwealth and State Government capital grants totalling $7.57 million in 2011and $25.30 million in 2010 are not included.
22
Chisholm Institute
2011 Board and Committees
Board Organisational Chart
The following chart details the organisational arrangements and
accountabilities of the Board and the Board Committees for 2011.
Responsible Minister
The Hon. Peter Hall
MP, Minister for Higher
Education and Skills
The Board of
Chisholm Institute
of TAFE
BOARD SECRETARY
Mr David Thorsen
Mr David Willersdorf,
President
Audit and Risk
Management
Committee
StrAtegic
DEVELOPMENT
and MONITORING
COMMITTEE
Resource
Management
Committee
Committee Membership
Committee Membership
Committee Membership
Mr Lyndon Joss (Chairperson)
Mr Robert Comelli (Chairperson)
Mr David Eynon (Chairperson)
Mr David Willersdorf
Mr David Willersdorf
Mr David Willersdorf
Ms Tracey Davies
Mrs Maria Peters
Prof Wendy Cross
Mr Michael Said
Mr Greg Hunt
Mr Peter Malone
Mr Mel Pecan
Mr Rob Johnson
Mrs Maria Peters
Executive Officer
Mr David Muir
Mr David Edgar
Mr John Buckler
Executive Officer
Executive Officer
Mr Grant Radford
Mr Peter Harrison
Board Committees
Board and Institute Committees – Relationships
THE BOARD OF CHISHOLM INSTITUTE
Audit and Risk
Management
Committee
Resource
Management
Committee
StrAtegic
DEVELOPMENT
and MONITORING
COMMITTEE
MEMBERSHIP
COMMITTEE
REMUNERATION
COMMITTEE
CHIEF EXECUTIVE OFFICER
Institue Committees
CHISHOLM DIRECTORS GROUP (CDG)
ODC/Centre/
DIvisional
ICT STEERING
COMMITTEES
OCCUPATIONAL
HEALTH
and SAFETY
COMMITTEE
BOARD OF
STUDIES
QUALITY
MANAGEMENT
COMMITTEE
Functional relationship
Monitoring relationship
Annual Report 2011
23
2011 Board Committee Profiles
David Willersdorf
Meg Collins-Hughes Robert Comelli President of the Board
Ministerial Appointee
Ministerial Appointee
Ministerial Appointee – Industry Member
BA, BEd, GradDip Management, Trained
Special Teacher’s Certificate, Trained
Secondary Teacher’s Certificate, MAICD.
B Bus,Dip Ed
Diploma of Commerce, Accountancy
Certificate, Associate Diploma in Industrial
Accounting
David is Group General Manager/Director/
the technical and TAFE systems. Then for
Company Secretary for the Grenda
19 years she worked in industry, first with
Corporation Pty Ltd with over 20 years
Mobil Oil at the Altona Refinery, then as
experience in this business. He was an
National Training and Development Manager
inaugural member of the Bayside Business
with Cadbury Schweppes. Recently, Meg
Board and a past Treasurer and President
retired from the position of Development
of Auburn South Primary School. David was
and Training Manager (Australasia) with
elected President of the Board of Chisholm
Pilkington after nine years of service.
Institute in November 2007 with effect
from 1 January 2008. He is a member of all
Chisholm Institute Board Committees and
was the chair of the Resource Management
Committee in 2007. David is a member of the
newly created Committee for Dandenong
established December 2010.
He is a Fellow of the Certified Practising
Accountants of Australia Association
and a member of the Australian Institute
of Management. David’s key areas of
knowledge, skills and experience include
this role since July 2007. Robert has a
strong commercial finance background
including significant merger and acquisition
work activities. Robert has held senior
management and CEO positions in a variety
of private sector organisations spanning
over 25 years. Over his career, he has held
directorships in several public and private
learning programs for management and
as 20 subsidiaries and turnovers in excess of
leadership, monitoring career development,
$500 million.
and fostering the growth and capability
within an organisation. Meg is a member
of the Australian Institute of Company
Directors.
Meg was appointed a member of the
Victorian TAFE Association (VTA)
Administrative Committee and an active
participant in the VTA’s processes.
As well as a Board member at Chisholm, she
is also chair of the Strategic Development
compliance.
and Monitoring Committee and a trustee/
Chisholm Institute
Ltd. (AAT Australia). Robert has held
companies, including Groups with as many
management, statutory and regulatory
as a member of all Board Committees.
for Accounting Technicians (Australia)
Meg has extensive experience in developing
financial management, accounting and risk
As President of the Board, David will continue
24
Meg began her career as a teacher within
Robert Comelli is the CEO of the Association
chair of the Caroline Chisholm Education
Foundation.
Robert is a Fellow of CPA Australia, Fellow
of the National Institute of Accountants
and Fellow of the Association of Accounting
Technicians.
Robert is the chair of the Resource
Management Committee and Remuneration
Committee.
Prof Wendy Cross
Tracey Davies
David Edgar Ministerial Appointee –
Industry Member
Ministerial Appointee –
Industry Member
Ministerial Appointee –
Industry Member
RN, RPN, B.App. Sc. (Adv Nsg), MEd., PhD.,
FRCNA, FACMHN*, MAICD
LLB (University of Melbourne),
B.Comm (University of Melbourne)
Strategic Development and Monitoring
Committee Co-opted Member
Professor Wendy Cross’ career has spanned
Tracey is a Principal at Davies Lawyers having
Advanced Diploma in Business Management
many years in nursing, nursing research and
been a Solicitor for 23 years. Tracey has
nurse education. She has contributed to
represented government departments and
professional, managerial and administrative
instrumentalities, banks, financial institutions,
elements of nursing over that time. Wendy
liquidators, businesses, individuals and
has been awarded numerous research
accounting firms. She currently practices
and teaching grants. She has extensive
in the areas of employment law, industrial
experience in a range of nursing and
relations and commercial litigation.
management activities.
Certificate IV in Workplace Assessment and
Training
Certificate in General Construction
(Horticulture – Landscape)
David is currently the General Manager of
Southern Suburbs Group Training Company
(SSGT) based in Melbourne. David has 15
Tracey is a member of the Law Institute
years experience in the vocational education,
Since April 2002, she was employed in a
of Victoria, Law Institute of Victoria
employment and training sector with eight of
senior executive role at Southern Health and
Practice Sections – Litigation Lawyers and
those years in senior management in group
her roles encompassed practice development,
Administrative Law & Human Rights and
training organisations, including management
clinical governance, policy and procedure
Industrial Relations Society of Victoria.
of a registered training organisation and
development, performance management and
appraisal, workforce planning and numerous
other activities.
Tracey is a member of the Audit and Risk
Management Committee.
Australian Apprenticeship Centre business.
During David’s career he has worked in both
regional and metropolitan communities
In February 2007, she joined Monash
across Victoria for extended periods. In his
University, School of Nursing and Midwifery
current position David is the senior executive,
with a focus on mental health nursing
public officer and responsible for all aspects
research and has since been appointed as
associated with the daily running of the
Head, School of Nursing and Midwifery.
business, including financial, strategic and
Wendy is a member of the Strategic
Development and Monitoring Committee and
operational management including reporting to
a board of management.
Chairs the Higher Education Academic Affairs
Since 2001 David has actively participated on
Committee.
multiple boards of management including local
learning employment networks, education
networks, Career Advice Australia consortiums
and fulfilled office bearer positions of Treasurer
and Chairperson. David is currently the
Treasurer and Vice Chairperson of the Bayside
Glen Eira Kingston Local Learning Employment
Network (BGKLLEN).
Annual Report 2011
25
2011 Board Committee Profiles
David Eynon
Greg Hunt
Robert Johnson
Co-opted Member
Co-opted Member
BEc (Monash), MA (Melbourne), FAICD
Bachelor of Science (Hons),Dip Ed, Dip Bus
(Frontline Management)
Resource Management
Co-opted Member
David is the Executive Director of Air
Conditioning and Mechanical Contractors
Greg is the Executive Officer of the South
Rob has a property and development
Association (AMCA). AMCA is a federation
East Councils Climate Change Alliance, a
background, he has significant experience in
of employer and industry associations
not for profit organisation that carries out
large private and public sector infrastructure
representing the commercial and industrial
climate change response projects through
projects spanning over 25 years. His roles
relations interests of companies that are
the local governments of the southeast.
have included general manager, project
primarily engaged in the design, installation and
servicing of air conditioning and mechanical
services plant in large commercial buildings.
Previously, Greg was involved in science
and environmental studies in secondary
schools before becoming a bureaucrat in
director, specialist consulting advice to both
the government and the private sector,
litigation and claims management and public/
private partnerships.
David’s primary responsibility is to the board
the education department where he was
of directors for service delivery in the state
involved in state, national and international
He has expertise in project procurement,
of Victoria and policy development for the
environmental education projects.
project finance, delivery management,
National Council.
Greg was Principal at the Zoo Education
David represents the Association to a wide
Service and then Education Manager at
range of organisations including, ministers
Melbourne Museum. He left formal education
of state, government departments, industry
to work as an environmentalist to establish
policy forums.
Waterkeepers Australia. He maintains his
David has extensive experience in public
policy development in connection with skills
training, industrial relations and energy
efficiency.
interests in education as President of the Box
Hill High School Council and with continuing
activity in the Australian Association for
Environmental Education. Greg is also a
fellow of the Victorian Association for
Current directorships include:
Environmental Education.
• Australian Construction Industry Forum
Greg is a member of the Resource
Ltd.
• ARBS exhibitions Ltd.
• Joint Plumbing Industry Training Fund Ltd
(2006 – current)
• Redundancy Central Payments Fund
David is a member of the Strategic
Development and Monitoring Committee.
26
LLB (Monash University)
Chisholm Institute
Management Committee.
property development, construction law, and
significant industry knowledge.
Lyndon Joss
Peter Malone
Mel Pecen
Ministerial Appointee –
Industry Member
Lieutenant Commander,
RAN rtd.
Elected Staff Member
Audit and Risk Management
Committee Co-opted Member
MEd Studies; BAppSc; GradDip Education;
Grad Cert Computing; Postgraduate DipEd
(TESOL); Grad Cert Indonesian Language.
Mel is currently the Group Business Manager
Before joining the TAFE sector, Peter served
has held various senior accounting and
as an officer in the Royal Australian Navy.
finance positions in the transport industry,
In the later part of his service, he undertook
including most recently finance manager and
a number of duties such as Formation
company secretary, in Western Australia. His
Associate Fellow Australian Institute of
Management
Ground Safety Officer at RAAF Williams
responsibilities during his career have included
and Training Development Manager at
contracts negotiation and management,
Member Australian Institute of Company
Directors
HMAS Cerberus, which involved safety and
financial management, quality systems
educational auditing and risk management.
Graduate Member Australian Institute of
Company Directors
compliance at industry level and ISO series,
He also performed duties as an Indonesian
marketing and business systems. Mel is also a
linguist in Australia and overseas. In the
director on the board of a large independent
TAFE sector he has been manager of a
private girls college in Melbourne.
Fellowship Diploma in Metallurgy, RMIT
Post Graduate Diploma in Business Studies,
Swinburne Institute
Post Graduate Diploma in Quality Technology,
RMIT
Kepner Traegar Management Program
Bywater Lead Assessor – Quality
Chartered Professional Engineer (Mechanical)
(CPEng)
Mentor and Business Plan Coach to SME’s
District Councillor – Rotary International –
District 9800
Lyndon has over 35 years Australian and
International experience in management
and senior management positions in the
engineering and manufacturing industries.
CPA, MBA
of Grenda Transit, a large bus operation
based in Melbourne. During his career Mel
multimedia development centre, a curriculum
officer and a project manager for a number
of major materials development projects.
Currently, Peter works in Chisholm’s Centre
for Integrated Engineering and Science.
He has a strong commitment to the regional
Peter is a member of the Strategic
development of the engineering industries
Development and Monitoring Committee.
through his role as President of South East
Melbourne Manufacturers Alliance (SEMMA)
and Facilitator South East Networks.
Lyndon is the chair of the Audit and Risk
Management Committee.
Annual Report 2011
27
2011 Board Committee Profiles
Michael F. Said Maria Peters David Muir
Audit and Risk Management
Committee Co-opted Member
Chisholm Institute Chief
Executive Officer
Elected Student Member
CPA
Ongoing (Ex-officio) Appointment
In the course of Michael’s career, he has held
CEO of Chisholm Institute since 2010,
executive positions at the State Insurance
Maria’s previous roles was as Deputy CEO
Office where he was General Manager of
and Executive Director Programs for the
its largest Insurance Division, and General
Institute. Maria has had extensive experience
Manager of Finance and Business Support.
in education both locally and internationally.
In 1993, he joined the Victorian Auditor
General’s Office as director responsible for
all financial audits and special reviews in
the Department of Education, including
universities and institutes of TAFE,
Department of Justice, and Police and
Emergency Services.
Michael retired in November 1999 and since
that time has developed a consultancy
specialising in governance. He is chairman of
four audit committees in local government
and a member of another audit committee in
local government.
She has held a range of management
positions and has had significant experience
in delivery performance, professional
development and tertiary education
across a range of industry sectors where
she continues to be actively involved in
respective VET related industry networks
and organisations.
As Institute Chief Executive Officer, Maria
Peters is an ongoing (ex-officio) member of
the Board. Maria is a member of the Board
Executive, the Resource Management
Committee and the Strategic Development and
Monitoring Committee. She is also a Trustee of
the Caroline Chisholm Education Foundation.
28
Chisholm Institute
Term: 1 April 2011 to 31 March 2012
David Muir was a Chisholm student who was
an elected member to the Board.
Chisholm Directors Group
The Chisholm Directors Group’s focus is strategic leadership and
business development, with day-to-day operations largely managed
by middle management under a policy and procedural framework
established by the Chisholm Directors Group under the Board’s
delegation framework.
Maria Peters Peter Harrison
Chief Executive Officer
Maria Peters was appointed Director
Deputy CEO and Executive
Director Programs
and CEO of Chisholm in April 2011.
Peter Harrison, B Ed, Grad Cert, Cert in
Prior to this, Maria was Deputy CEO
Welfare is responsible for the educational
and Executive Director Programs
leadership, planning and strategic
for the Institute. While at Chisholm,
direction of the Institute’s core business
Maria has extensive experience in
across six teaching centres, including the
driving educational leadership and
Berwick Technical Education Centre and
planning and strategic direction for the
the Institute’s two regional campuses at
Institute. Maria’s highlights include the
Bass Coast and Mornington Peninsula.
development and rollout of the Institute’s
He also has carriage of strategic
Berwick Technical Education Centre in
planning, institute delivery performance,
2009 as well as driving the Institute’s
professional development, e-learning
first tertiary offerings in community
strategies, tertiary education and
mental health, alcohol and other drugs,
development and business development.
delivered for the first time in 2011.
Peter has had more than 20 years
Maria has had extensive experience in
education both locally and internationally.
She has held a range of management
positions and has had significant
experience in delivery performance,
professional development and tertiary
education across a range of industry
sectors where she continues to be
actively involved in respective VET related
industry networks and organisations.
experience in both the secondary and
vocational education sectors holding
a range of senior management and
leadership positions. He has been actively
involved with community groups, local
and state government initiatives and
reforms with a primary focus on the
successful engagement and pathways
development for disadvantaged and
disengaged young people.
Annual Report 2011
29
Chisholm Directors Group
John Buckler
Anne Cosentino
Leanne Jenkins
CIO and Director, Technology
and Learning Information
Services
Director, Centre for Vocational
Pathways
Director, Centre for Services
and Arts Industries
Anne Cosentino, BA, Dip.Ed, has extensive
Leanne Jenkins worked extensively in
John Buckler MBA, BSc (Hons), PGDipEd,
experience in the field of education,
the hair and beauty industry before
joined Chisholm in December 2011 having
spanning both secondary and adult sectors.
commencing her career with Chisholm in
been Director of IT at Lincoln University,
Appointed Director, Centre for Vocational
1988. In 1995, Leanne was appointed to
Christchurch, New Zealand. Prior to moving
Pathways in 2008, Anne brought to the
the position of department manager and
into an IT career in 1992 John taught in
position significant experience in securing
since 2001 also managed the sport and
high schools in the UK and Bermuda. John’s
and managing government tenders;
recreation program area. In 2008 Leanne
career in IT has been in the electrical and
involvement in local and national networks
was appointed as Director, Centre for
plumbing wholesale, food retail and tertiary
for general education and access programs;
Services and Arts Industries; a new centre
education industries. John enjoys the
and school, community and industry links.
which brings hospitality, food processing,
vibrancy, complexity and diversity of the
She strategically leads her centre in the
arts, hair and beauty together. Leanne has a
tertiary education industry – he has been an
development and implementation of
particular interest in working with industry
active member of the Council of Australian
foundation and pathway programs for its
and has wide experience in providing
Universities Directors of IT and has served on
diverse student cohort.
training and consultancy to a diverse range
the executive of the Australian Peoplesoft
Higher Education Users Group. He focuses
on ensuring that technology is deployed in
the context of teaching, learning, service
and administrative activities. He also enjoys
programme management and has managed
large enterprise projects outside of the IT
field including all aspects of the merger of a
polytechnic and a university.
30
Chisholm Institute
of industry sectors.
Andrew Kong
Madelyn Lettieri
Christine Louey
Director, Centre for Advanced
Business Services
Director, Centre for Health,
Community and Early
Childhood Education
Director, International Division
Grad Dip Ed, BA, Dip Trg Dev. has enjoyed a
Madelyn Lettieri, Dip T, Dip FLM, Cert IV
WTA and GradCertEdMgt, Professional
was appointed to this position on 1 July
career as a leader in education and training
in industry, government and the Victorian
Certification – Leadership and Management
TAFE system. He has worked as the training
– Chair Academy (USA) was appointed
and development manager at Tooheys, Lion
Director in 2008. Madelyn has extensive
Nathan. He was a commissioned officer
experience in teaching and management
within the Australian Regular Army and held
within the TAFE sector and has managed
management positions at East Gippsland
a diverse portfolio of teaching programs,
Institute of TAFE and Box Hill Institute before
including innovative models of small business
joining Chisholm Institute in June 2008.
vocational training centres. Madelyn also
Andrew Kong, AFAIM, M Ed Admin, M Prof St,
has experience in course design and
Andrew’s career has seen him involved in
development from certificate I level through
implementing the education and training
to bachelor and graduate certificate levels
strategies within change management
within the VET sector. She has delivered
initiatives across industrial, military and
many conference papers and workshops in
educational settings.
the fields of art and disability in practice,
health and wellbeing and community
partnerships. Madelyn has also been part of
Christine Louey, BBus (Accounting), GradDip
Ed, Diploma FMI, Cert IV in TESOL, CPA
2007. Prior to this appointment, Christine
held the position of Department Manager,
Business Services. Christine joined Chisholm
in 2003 and previously held management
positions in international projects, business
and management and the CBT Accounting
Resources Project at Swinburne University’s
TAFE Division and at Eastern TAFE. Christine
currently is responsible for commercially
based international development including
international projects, international student
recruitment and English language programs
for international students. In partnership
with centres and divisions she coordinates
and supports the strategic development of
Chisholm’s international profile.
workforce development projects and applied
research activity.
Annual Report 2011
31
Chisholm Directors Group
John McKay
Director, Centre for Integrated
Engineering and Science
Grant Radford
Director, Corporate Services
Division
John McKay, Grad Dip Ed Admin, BEE, DipEd
Director, Centre for
Sustainable Technologies
has extensive experience in teaching
Malcolm Macpherson BSc, G Dip Recreation, G
as Director, Corporate Services in April
and senior management within the TAFE
Dip Ed joined Chisholm in 2007 as Manager of
2008. Grant has over 15 years experience
sector. John manages delivery over a
Manufacturing Engineering and Logistics and
in finance and infrastructure. Grant has
range of industries that includes electrical
in 2008 moved to the role of Director, Centre
held a number of positions in Australia’s
and electronics engineering, computer
for Sustainable Technologies. Malcolm’s early
Defence Force which included assisting with
engineering and applied science and
career was in a variety of roles in industrial
the development and management of the
manufacturing engineering and logistics. This
chemistry and community-based recreation
Defence Material Organisation’s statutory
scope of operations also includes Australia
management. Malcolm managed a diverse
financial statements, monthly budget
wide and international project delivery
portfolio of teaching centres during his 20
analysis and audit coordination. Grant has
as well as the recently developed higher
years at Bendigo Regional Institute of TAFE
also operated as a senior manager with
education profile. John maintains close links
and has developed specialist expertise and
Victoria’s Department of Education and
with industry and key industry representative
interest in work-based training programs
Training where he played a major role in the
bodies and has served on various boards
for industrial clients. A commitment to
implementation of the 2006 Skill Statement
of management of organisations including
the professional skilling of VET staff was
– Maintaining the Advantage. Immediately
group training and LLEN. John was appointed
enhanced by two secondments to the TAFE
prior to joining Chisholm, Grant held a
Director, Centre for Integrated Engineering
Development Centre.
senior advisor position with the Victorian
and Science in 2008.
32
Malcolm Macpherson
Chisholm Institute
Grant Radford, BCom, CPA, joined Chisholm
Department of Treasury and Finance.
David Thorsen
Director, Organisational
Culture and Communications
Division
David Thorsen, BBus, GradDip Labour
Law, joined Chisholm in June 2005 as HR
Development Manager. He has over 15
years experience in various education
environments. Prior to Chisholm, David
was Human Resources Manager, Adult
Multicultural Education Services (AMES),
and also worked in a range of human
resource roles at La Trobe University. David
was appointed as Director, Organisational
Culture and Communications in 2008.
David’s role encompasses responsibility for
human resources, marketing, learner and
community engagement, client services as
well as performing the role of Chisholm’s
Board Secretary.
Annual Report 2011
33
Governance Report
Corporate Governance:
Chisholm’s Solid
Foundation
The Board of Chisholm Institute
Corporate governance is central to Chisholm’s capacity to operate as a
of Technical and Further
premier vocational education provider and receives on-going scrutiny
Education (“The Board”) is
from the Board and its committees. The Board considers that its
responsible to the Minister
governance framework provides a competitive advantage to Chisholm
and other stakeholders for the
by effectively discharging its ethical and stewardship obligations and
strategic oversight and guidance
by facilitating effective and timely decision-making processes.
of Chisholm as set out in the
Education and Training Reform
Act 2006, its Constitution under
this Act and the Board’s Charter.
The Board recognises that its
overriding responsibility is to act
honestly, fairly and diligently
in meeting the aspirations
of students, staff and the
communities in which Chisholm
operates and the obligations
to the Minister and other
stakeholders.
34
Chisholm Institute
In relation to the governance framework, the Board seeks to:
• Embrace both government and non-government sector bestpractice approaches
• Recognise and adopt, as early as possible, any new
recommendations relating to Board operations
• Actively discuss, monitor and review corporate governance issues
and best-practice developments
• Develop annual performance goals and actions to support
achievement of these goals and
• Critically analyse its performance periodically.
Board Charter
The Board’s Charter sets out the Board’s purpose, powers and specific
responsibilities.
The Board’s responsibilities are to:
Leadership, Planning and Direction
(1)
Set the Institute’s strategic directions, Strategic Plan,
associated plans
(2)
Select and appoint the Chief Executive Officer (CEO),
determine the terms and conditions of the appointment and
(3)
monitored
(13) Ensure that the Institute is meeting its statutory and
regulatory obligations and that ethical standards are being
maintained
(14) Ensure the Institute operates within a clear and regularly
reviewed policy framework
(16) On an annual basis evaluate the performances of all Board
Utilise its collective external networks, experience in the
identifying threats and opportunities and promote the
Institute in the region
Ensure there is a succession plan in place in respect of the
CEO.
Financial Management and Performance
Monitoring
Enter into and monitor the triennial Performance Agreement
and annual Performance Agreement Variations with the
Victorian Skills Commission
(7)
management of risk and assurance that risk is being regularly
Establish a clear set of delegations to the CEO to facilitate
to scan the external environment, assist the Institute in
(6)
including identification of assessment of the level of risk, the
(15) Appoint the chairpersons of Board Committees
business environment and knowledge of regional issues
(5)
(12) Approve and oversee the Institute’s Risk Management Plan,
evaluate the performance annually
the operation of the Institute
(4)
Risk Management and Legislative Compliance
Approve the Institute’s Annual Budget, Financial Statements
and Annual Report
(8)
Appoint the Institute’s internal auditor on an annual basis
(9)
Monitor the Institute’s achievements of its goals and targets
against agreed key performance indicators on both a monthly
and an annual basis
Committees and Working Groups to ensure that each
operates in accordance with its approved terms of reference
(17) Determine membership and the terms of reference for each
Board Committee and Board Working Group
(18) Receive reports from the Board standing committees and any
ad hoc Board committees, and consider, determine or ratify
their recommendations as appropriate
(19) Recommend to the minister appointments to the Board in
accordance with clause 5(a) of the Board’s Constitution
(20) Select and appoint coopted members to the Board in
accordance with clause 5(e) of the Board’s Constitution
(21) Ensure that there are staff and student members elected
to the Board in accordance with clauses 5(b) and 5(c) of the
Board’s Constitution
(22) Oversee the appointment and remuneration policies and
performance management processes for all other Institute
executives
(23) Establish performance goals for the Board and evaluate its
performance annually. (10) Approve capital works plans and programs
(11) Establish performance goals for the Board and evaluate the
Institute’s performance annually.
Annual Report 2011
35
Composition of the Board
The Board comprises 12 members:*
• Seven members appointed by the responsible minister based on
Board recommendations*
• Two members co-opted by the Board*
• One staff member elected by staff
• One student member elected by students
• The Institute Chief Executive Officer.
* There are currently 2 vacancies.
Board Meetings
The Board met nine times in 2011 with an additional two planning and
strategy workshop conducted in May and September.
Typically the Board’s agenda will include:
• Recording of attendances and apologies
• Recording of actual or potential conflicts of interest in regard to
• A report by the Chief Finance and Accounting Officer on monthly
financial performances, financial risks and forecasts since the last
meeting
• A report by the CEO
• As required, consideration of any other matters subject to the
Board’s Charter not otherwise considered and reported through a
Board Committee and
• Other matters raised by Board members in accordance with Board
meeting procedures.
Criteria for Board Membership
For Board members recommended for appointment by the minister or
co-opted by the Board, the Board will consider skills and experience
in light of the strategic directions, skills required to enhance the
Board’s performance, and current composition and gender balance
of the Board. Specialist skills in education, legal, finance, community
development, sustainability and communications and other
professional skills including senior industry experience are valued.
Board members are also required to demonstrate:
any meeting agenda items
• Minutes of the previous meeting
• Outstanding issues raised by board members at previous
meetings
• Board correspondence
• Reports from the Chairs of Board Committees that have met since
the last meeting
• Review of the minutes of the Board Committee reports and
recommendations since the last meeting
36
Chisholm Institute
• Personal integrity and honesty
• Alignment with the Institute’s visions and values
• A willingness to attend and participate constructively in Board and
Board Committee processes.
The Board seeks prospective Board members through its ongoing
liaisons with industry, local government, regional educational providers
and community group as well as expressions of interest process
conducted by the Minister.
Risk Management
Chisholm has established a comprehensive risk management plan
The following Certification Statement is provided in accordance
consistent with the Australian/New Zealand Risk Management Standard.
with Standing Direction 4.5.5 from the Minister for Finance and in
Internal control systems enable the Board and executive management to
accordance with a Resolution of the Board dated 29 February 2012
understand, manage and satisfactorily control risk exposures.
The new plan that was endorsed in 2011 identifies high-level material
risks that could potentially hinder or prevent Chisholm achieving its
key objectives and performance expectations.
Risk Management
Certification Statement
I, Maria Peters, certify that
executive to understand,
as at the 31st December
manage and satisfactorily
2011, Chisholm Institute of
control risk exposures in
TAFE, has risk management
significant respects. The
processes in place broadly
Audit Finance and Risk
The Audit and Risk Management Committee is responsible for
consistent with the
Committee verifies this
providing advice to the Board on the development and operation of
Australian/New Zealand Risk
assurance and that the risk
the Annual Risk Management Plan. The Internal Audit Plan is aligned
Management Standard (or
profile of the Agency has
to risk issues identified in the Annual Risk Management Plan.
equivalent standard) and
been critically reviewed
an internal control system
within the last 12 months.
The Board is responsible for approving the Annual Risk Management
Plan and related strategies, monitoring and assessing the
implementation and effectiveness of risk management strategies and
determining appropriate corrective measures.
The Resource Management Committee specifically monitors risks
is in place that enables the
associated with the achievement of targets specified in the Annual
Budget Plan.
The total numbers of risks monitored by the Board in 2011 were as
follows:
Maria Peters
Level of Risk
Exposure
Risk Exposures subject to
monitoring by the Board in 2011
Extreme
2
High
4
Medium
9
Total
15
Chief Executive Officer
Chisholm Institute of TAFE
29 February 2012
Dandenong
Annual Report 2011
37
Conflict of
Interest
The Board’s meeting procedures
Board Committees
require Board members to
The Board carries out duties by delegating certain responsibilities to Board Committees.
declare any actual or potential
The committees make decisions and recommendations to the Board on the matters
conflicts of interest in relation
delegated to them.
to any item to be discussed at
meeting. As appropriate,
Audit and Risk Management
Committee
Strategic Development and
Monitoring Committee
members are required to leave
The Committee assists in the Board
The Committee assists the Board
the meeting, not enter into
governance framework with the
through monitoring:
discussions or refrain from voting
monitoring of:
• The development of the Strategic
a Board or Board committee
where an actual or potential
conflict of interest exists.
In addition Board Regulation 08:
Member and Board Committee
Declarations require each Board
and Board Committee member to
complete an annual declaration
in relation to:
• Any conflict of interest or
other declaration in respect
of duties as a member of the
Chisholm Institute of TAFE
Board
• Any financial interest in any
• The preparation of Chisholm’s financial
statements
• The effectiveness of the internal
control framework
• The operation of an effective internal
and external audit program
• Effective management of business
risks
• Business continuity process
• Effective ethical framework and
• The Chisholm fraud control program.
Under the Committee’s Charter, all
members must be independent members.
purchasing or tendering
processes undertaken by the
Institute
• Any immediate relatives,
friends or acquaintances
with a financial interest
in the purchasing and
tendering processes of the
Institute and
• Any personal bias, obligation
or inclination, which would
in any way affect decisions
or influence other members
Resource
Management Committee
The Committee assists the Board
through the monitoring of:
• Financial strategies
• Risks associated with the
achievement of budget plan targets
change.
plans
• Information and communication
• Buildings capital works and
maintenance programs
• Major expenditures and contracts
(exceeding $100,000)
• Legislative change and influence
• Overseas travel and
• Student fees and charges.
38
Chisholm Institute
• The implications of research and policy
changes in strategic directions
• Learning development strategies
• Workforce development strategies
• Achievements against the annual
strategic plans
• Best-practice arrangements in
corporate governance and updating of
the governance manual and
• Program delivery.
Remuneration
and Membership Committee
The Committee is responsible for
recommending new appointments to the
Board and Committees, establishing and
reviewing the Executive remuneration
policy against the Government guidelines,
the CEO, approve succession planning
developments
detailed in the declarations
activities
• Achievements against annual budget
member of the Chisholm
provide advice if circumstances
performance against stated goals/
approving performance payments to
technologies strategies and
Board members are required to
• Annual assessment of the board
• Performance measures
in relation to duties as a
Institute of TAFE Board.
Framework and annual strategic plans
requirements for the position of CEO and
oversee remuneration with respect to
Board members.
Board and Committee Meetings
Board
(including
ad-hoc
meeting)
Audit and Risk
Management
Committee
Strategic
Development
and Monitoring
Committee
Resource
Management
Committee
Chisholm
Planning
Workshop
(meeting days)
A
B
A
B
A
B
A
B
A
B
Mr David Willersdorf
9
9
5
4
6
6
3
3
3
2
Ms Meg Collins-Hughes
6
3
3
0
3
1
3
2
3
3
3
1
3
3
3
3
Prof Wendy Cross
9
4
Mr Robert Comelli
9
8
Mr Lyndon Joss
9
8
Mr Peter Malone
9
8
6
5
Mr David Eynon
9
9
Ms Tracey Davies
9
6
Mr Greg Hunt
9
9
Mrs Maria Peters
9
9
Mr Leigh Grant
2
Mr David Muir
4
Mr Mel Pecen (1)
N/A
N/A
5
Mr Michael Said (1)
N/A
N/A
5
Mr David Edgar (1)
N/A
N/A
Mr Rob Johnson (1)
N/A
N/A
5
6
4
2
3
3
3
3
3
3
3
3
3
3
3
1
4
3
1
5
3
1
3
3
3
3
5
6
6
6
5
2
2
1
1
4
0
4
3
3
3
3
6
5
3
2
A: Indicates the number of meetings the member was eligible to attend
B: Indicates the number of meetings that the member attended
Note 1: Indicates co-opted members of Board Committees.
Board Member Professional Development
In 2011 at the commencement of the year the Board introduced a
program of addressing strategic topics at meetings and planning
workshops. Topics addressed in 2011 were:
• Risk Management Board Responsibility, Mette Shcepers, Nous
Group
• Tertiary Education Provision Plan for Outer South East Melbourne,
Professor Kwong Lee Dow, Chair
• Government perspective on the training market place and
Chisholm’s role, Kym Peake, Deputy Secretary, Skills Victoria
• Organisational Sustainability from a Financial Perspective, Grant
Radford, Director, Corporate Services, Chisholm Institute
• Aligning Business to Strategy – Commencing the Change Process,
Maria Peters, CEO, Chisholm Institute
• Skills for Prosperity a Road Map for Vocational Education &
Training, Robyn Shreeve, CEO, Skilling Australia
• Marketing Strategy, Kate Oxenbould, Marketing Manager, Chisholm
Institute and
• Chisholm Brand Strategy, Neil Cotton, The Lab.
All Board members have access to formal Governance training through
the Australian Institute for Company Directors.
Annual Report 2011
39
Promotion
of Ethical
Standards
The Board is accountable to
the responsible minister for
the performance and ethical
culture of Chisholm. The Board
continually promotes the
development of high ethical
standards.
The Chisholm Staff Code of
Conduct
The Chisholm Staff Code
of Conduct describes how
staff should behave in many
circumstances. It provides
assistance to staff in resolving
uncertainties and clearly sets
outs Chisholm’s expectations of
staff in day-to-day behaviours.
The code is subject to annual
review reported to the Audit and
Board regulations prescribe strict standards for purchasing aligned
Internal and External Audit Programs
to State Government Standards applicable to the Department of
The Board appoints an
Innovation, Industry and Regional Development. Under the Staff
independent auditor with
Chisholm Values
Code of Conduct and Chisholm Purchasing procedures, all staff with
responsibilities on conducting
any purchasing, budget or financial management responsibilities
an on-going audit of income
are required to complete a Conflict of Interest/Pecuniary Interest
and expenditure in accordance
Chisholm’s vision, purpose and
declaration. No shares are held by Chisholm senior officers as
with Section 3.1.15(3) of the
values are integral in shaping
nominees or held beneficially in a statutory authority or subsidiary.
Education and Training Reform
Risk Management Committee
and is actively used in Chisholm’s
human resource management
processes. In 2011 the code was
reviewed and updated.
the way in which the Institute
functions and forms the
cultural base of expected staff
behaviour. The values have been
designed through consultation
with staff and are directly
relevant to the education setting
Purchasing and Statements of
Pecuniary Interest
Fraud Control Program
of the Board and has a strong
manages an annual Fraud Control Program.
alignment to the Board’s Annual
Internal Control Framework
Chisholm operates a comprehensive internal control framework covering
also compliments the broader
risk management and all aspects of budget, financial and asset
Victorian Public Sector values.
management. The Chisholm CEO and Chief Financial and Accounting
All Board members and staff
Officer make an annual declaration to the Board that states:
do in their roles associated with
Chisholm.
40
Chisholm Institute
Risk Management Plan and
Strategic Plan. The operation of
the Audit Plan is monitored by
the Board though the Board’s
Audit and Risk Management
Committee.
Chisholm is also subject to
must ensure that Chisholm’s
underpinned in everything they
plan is subject to the approval
The Board through the Audit and Risk Management Committee
in which Chisholm operates but
vision, purpose and values are
Act 2006. The annual audit
“The financial reports presented to, and prepared on behalf of
the Chisholm Institute of Technical and Further Education Board
present fairly the financial conditions of Chisholm Institute of
TAFE and are founded on the basis of sound risk management,
internal compliance and control systems.”
an external audit conducted
by the Victorian Auditor
General’s Office in relation to
the preparation of the Annual
Report.
Social Responsibility
Chisholm PLAYS
A KEY ROLE
Chisholm recognises the important role it plays in the communities
in which it operates. Chisholm acknowledges that our demonstrated
social responsibility is a vital contributor to long-term business
success, and community capability. As a Victorian Government
operation, Chisholm also plays a key role in the Victorian Government’s
commitment to social responsibility. This commitment is reflected in:
• Chisholm’s commitment to providing accessible programs meeting
the learning needs and vocational aspirations of its students
• Chisholm’s commitment to safety, health and the environment in
all aspects and
staff, including career transition training and manager assist
– Provision of health checks for staff in conjunction with
WorkHealth. 613 staff participated in this program.
• National Safe Work Week activities – over 376 entries were
received over the course of the weeks activities from staff
• Continued testing and enhancement of the Institute’s Business
Continuity Plan, there were two desktop exercises carried out
over the year, with a further one being run through consultants of
the Victorian Managed Insurance Agency (VMIA)
• Continuation of the Emergency Management Program, including
• The operation of the Caroline Chisholm Education Foundation.
training emergency response staff, first aiders, and conducting
Health, Safety and Wellbeing
entire campus evacuation drills at each campus and
Chisholm considers all workplace injuries to be preventable and
ensures occupational health and safety is integrated into department
and campus operations. Chisholm’s OH&S policies and procedures
assert individual responsibilities for the health and safety of staff
and students. Health and safety issues identified through Chisholm’s
hazard management process are given the highest priority in
expenditure considerations.
The Institute’s health and safety strategy aims to meet its legal and
ethical obligations and to create a harmonious, productive learning
and working environment, by providing a workplace free from risks to
health and safety.
Key strategies undertaken in 2011 were:
• Health and well-being initiatives to improve staff health and
• Auditing of and continued implementation of Department OH&S
Management Plans.
Chisholm’s OH&S Management Program in conjunction with its Injury
Management Program, continues to work towards a reduction in
staff injuries, workers compensation claims and WorkCover insurance
premium whilst improving the health and welfare of staff at work.
WorkCover/Return to Work
The number of staff injuries reported for the year totalled 42 which is
11 fewer than the previous year. Student reported injuries were also
down, 97 for the year and 132 for the previous year.
The number of accepted WorkCover claims for 2011 totalled 14,
six fewer than the previous year. Of these, seven were premiumsensitive, a decrease of eight from the previous year.
fitness including:
– Institute wide staff flu vaccination program, 385 staff
participated
– Active promotion of Employee Assistance Program to benefit
On average, the employees who were injured as a result of a
workplace incident had an average of 5 days lost which is better than
the target of a maximum of ten days.
Annual Report 2011
41
Environmental Sustainability
• Green purchasing
• Built environment design
The business of Chisholm Institute requires consumption of large
• Transportation
amounts of natural resources. Chisholm is committed to reducing
its impact on the environment and in 2011 continued the works
• Greenhouse gas emissions
that commenced in 2007. This is demonstrated by the Institutes
• Education for sustainability
ResourceSmart Strategy which aligns with Government policy
• Embedding of sustainability throughout our business.
commitments:
• Living Sustainably (2009)
The targets set for 2011 were as follows:
• National VET Sector Sustainability Policy and Action Plan
• Emission reduction 15%
• Energy reduction 15%
(2009 – 2012).
• GreenPower purchase 20%
Chisholm’s ResourceSmart Strategy covers the following key areas:
• Renewable energy onsite generation 5%
• Energy
• Water reduction 15%
• Water
• Waste recycled 25%.
• Waste minimisation and recycling
Chisholm’s baseline information was calculated for 2007 and the
• Onsite renewable energy generation
results for 2011 compare with the baseline are as follows:
2011 (Jan – Dec) VS 2007 Baseline (Jan – Dec)
Impacts/Indicators
Square Meters (Mth Avg)
Measure
Baseline 2007
Actual 2011
% (‘07 vs’10)
M2
98,784
111,719
13.1%
SCH
9,250,627
11,194,353
21.0%
Staff Numbers (Mth Avg)
#
1,332
1,959
47.1%
Student Enrolments
#
40,329
43,127
6.9%
Student Contact Hours
Staff EFT (Avg)
Student FTESL (SCH/720)
Student (EFTSL) + Staff (EFT)
EFT
956
1,109
15.9%
EFTSL
12,848
15,548
21.0%
EFTSL + EFT
13,805
16,657
20.7%
t Co2-e
14,223
15,484
2011 Targets
T1 – Emissions Reduction (15%)
T2 – Energy Reduction (15%)
T3 – Green Power Purchase (20%)
T4 – Renewable Energy (5%)
T5 – Water Reduction (15%)
T6 – Waste to Landfill Reduction (25%)
t CO2-e/EFTSL+EFT
1.03
0.93
MJ
61,636,903
64,473,039
Total MJ/EFTSL+ EFT
4,465
3,871
MJ
3,187,044
5,173,876
%
9.8%
14.9%
MJ
0
24,926
%
0
0.04%
kL
36,744
30,154
kL/EFTSL+ EFT
2.66
1.81
t
847
1,318
t/EFTSL+ EFT
0.0613
0.0791
% recycled
13.3%
26.3%
Notes:
There are many variables that impacted on Chisholm achieving its sustainability targets. Impacts include:
• The square metres (m2) of building area increased by 13% in 2011 compared to 2007
• The student contact hours (SCH) increased by 21% in 2011 compared to 2007
• Chisholm operating hours have increased to cope with additional evening and weekend activity
• The full operation of the new building stock has contributed additional energy, water and waste.
42
Chisholm Institute
-9.8%
-13.3%
5.1%
0.04%
-32.0%
28.9%
2011
ANNUAL
REPORT
Financial
and Compliance
Information
Financial and Compliance Information
Financial Overview
44
Chisholm Institute Financial Reports and Performance
Statements
50
Caroline Chisholm Education Foundation Report
100
Caroline Chisholm Education Foundation Financial
Reports
107
Compulsory Non-Academic Student Fees
118
Activity Table
119
Financial Performance against Budget
121
Chisholm 2011 – 2014 Targets
122
Disclosures Index and Additional Compliance Reports
123
Acronyms
142
Financial Overview
Operating statement
Operating Surplus
Operating Surplus increased by 32.8% from the prior year.
OPERATING SURPLUS
8.0
2011
$M
2010
$M
Var
6.0
Operating revenues
128,699
128,800
(0.1%)
4.0
Operating expenditures
121,247
123,189
(1.6%)
2.0
7,452
5,611
32.8%
0.0
7.0
7.6
7.5
3.7
4.9
5.6
2006 2007 2008 2009 2010 2011
Operating surplus is the key measure of profitability. This measure is the
difference between operating revenues and operating surpluses.
Net Surplus
Net Surplus decreased by 71% from the prior year.
NET SURPLUS
30.0
2011
$M
2010
$M
Var
Total revenues
136,287
154,158
(12%)
Total expenditures
129,885
132,356
(2%)
6,402
21,802
(71%)
21.8
20.0
$M
10.0
15.2
9.5
6.1
8.4
6.4
0.0
2006 2007 2008 2009 2010 2011
Net surplus results from the operating surplus, the success of obtaining
capital funding from Government, depreciation and expenditures from capital grants.
Enterprise Revenue
Enterprise revenue decreased by 8% from the prior year.
ENTERPRISE INCOME
50.0
2011
$M
2010
$M
Var
Fee for service income
25,029
28,639
(13%)
Student fees and charges
11,158
10,550
6%
Sale of goods
671
810
(17%)
Investment income
982
1,002
(2%)
1,562
1,811
(14%)
39,402
42,812
(8%)
Other
40.0
$M
30.0
26.2
31.8
35.5
38.8
42.8
39.4
20.0
10.0
0.0
2006 2007 2008 2009 2010 2011
Enterprise revenue is the operating revenue excluding Government contributions.
Fee for service (FFS) as a % of Total Operating Revenue
2011
$M
2010
$M
Var
FFS - Government
8,924
9,093
(2%)
FFS – International students
6,342
9,791
(35%)
FFS - International projects
3,370
2,367
42%
FFS - Short courses
2,381
2,757
(14%)
FFS - Other
4,013
4,631
(13%)
25,029
28,639
(13%)
Fee for service revenue is a major component of Enterprise revenue.
Profitable fee for service revenue is the major source of funding
for reinvestment in Chisholm.
44
% FEE FOR SERVICE
25%
Chisholm Institute
20%
%
19%
22% 23% 23% 22%
19%
15%
10%
5%
0%
2006 2007 2008 2009 2010 2011
Financial Overview
Balance Sheet
Working Capital
2011
$M
2010
$M
WORKING CAPITAL
Var
Current assets
Cash and cash equivalents
15.0
26,377
13,696
93%
$M 10.0
4,802
12,670
(62%)
5.0
0
2,000
100%
0.0
162
153
6%
1,016
928
9%
Payables and accruals
(10,938)
(8,984)
(22%)
Short term employee
benefits
(3,339)
(3,324)
(0%)
18,080
17,139
5%
Receivables
Floating Rate Notes
Inventories
Prepayments
17.1 18.1
20.0
7.0
6.1
9.4
4.3
2006 2007 2008 2009 2010 2011
Current liabilities
Working capital is a measure of Chisholm’s liquidity
(the ability to pay debts as they fall due) in the short term.
Net Assets (Equity)
Net Assets increased by 3% from the prior year.
2011
$M
2010
$M
NET ASSETS
Assets
Current assets
Non current assets
$M
Non current liabilities
200.0
32,357
27,447
18%
100.0
212,312
207,492
2%
0.0
(24,144)
(21,242)
(14%)
(1,370)
(1,353)
(1%)
219,155
212,344
3%
Liabilities
Current liabilities
300.0
Var
182.2
151.6 171.2
190.5 212.3
219.2
2006 2007 2008 2009 2010 2011
Net assets equal Chisholm’s totals assets less its liabilities.
Annual Report 2011
45
Financial Overview
Reinvestment in Chisholm
In 2011, $7.7 million was reinvested into key capital facility projects driving
Chisholm’s transformation into a training provider of choice.
46
REINVESTMENT IN CHISHOLM
10,000
Year
Growth
$
$’000 6,000
2008
3,538,000
3,538,000
4,000
2009
3,282,000
-256,000
2010
2,444,938
-837,062
2011
7,703,538
5,258,600
Chisholm Institute
7,704
8,000
Reinvestment
in Chisholm
3,538 3,282
2,445
2,000
0
2008
2009
2010
2011
Annual Report 2011
47
48
Chisholm Institute
DECLARATION BY PRESIDENT OF THE BOARD,
CHIEF EXECUTIVE OFFICER AND CHIEF FINANCE
AND ACCOUNTING OFFICER
We certify the attached financial statements for the Chisholm Institute of TAFE has been
prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994,
applicable Financial Reporting Directions issued under that legislation, Australian Accounting
Standards and other mandatory reporting requirements.
We further state that, in our opinion, the information set out in the comprehensive operating
statement, balance sheet, statement of changes in equity, cash flow statement and notes to
and forming part of the financial statements, presents fairly the financial transactions during
the year ended 31 December 2011 and financial position of the Institute as at 31 December
2011.
At the date of signing these financial statements, we are not aware of any circumstance
that would render any particulars included in the financial statements to be misleading or
inaccurate. There are reasonable grounds to believe that the Institute will be able to pay its
debts as and when they become due and payable.
The President of the Board and the Chief Executive Officer sign this declaration as delegates
of, and in accordance with a resolution of, the Board of Chisholm Institute of TAFE.
David Willersdorf
Maria Peters
Grant Radford
President of the Board
Chief Executive Officer
Chief Finance and Accounting
29 February 2012
29 February 2012
29 February 2012
Place: Dandenong
Place: Dandenong
Place: Dandenong
Annual Report 2011
49
Comprehensive Operating Statement
For the year ended 31 December 2011
2011
2010
Note
$’000
$’000
Government contributions – operating
2a(i)
89,297
85,988
Government contributions – capital
2a(ii)
7,567
25,295
Sale of goods and services
2b
36,858
39,999
Interest
2c
982
1,002
Continuing operations
Income from transactions
Total fair value of assets received free of charge or for nominal consideration
2d
0
450
Other income
2e
1,562
1,361
136,266
154,095
Total income from transactions
Expenses from transactions
Employee benefits
3a
89,612
90,737
Depreciation and amortisation
3b
6,357
5,867
Grants and other transfers
3c
17
20
Supplies and services
3d
21,808
24,215
Other operating expenses
3e
9,830
10,399
127,624
131,238
8,642
22,857
Total expenses from transactions
Net result from transactions
Other economic flows included in net result
Net gain/(loss) on non-financial assets
4a
(59)
(11)
Net gain/(loss) on financial instruments and statutory receivables/payables
4b
(13)
(367)
Net gain/(loss) arising from revaluation of long service leave liability
4c
(1,765)
(370)
Net gain/(loss) arising from revaluation of annual leave liability
4c
(403)
(307)
Total other economic flows included in net result
(2,240)
(1,055)
Net result from continuing operations
6,402
21,802
-
-
6,402
21,802
Other economic flows – other non owner changes in equity
Comprehensive result
The above comprehensive operating statement should read in conjunction with the accompanying notes.
50
Chisholm Institute
Balance Sheet
As at 31 December 2011
2011
2010
Note
$’000
$’000
Cash and deposits
5
26,377
13,696
Receivables
6
4,802
12,670
Investments, loans and other financial assets
7
0
2,000
31,179
28,366
8
162
153
Property, plant and equipment
10
212,064
205,420
Intangibles
11
248
0
9
1,016
1,000
Total non financial assets
213,490
206,573
Total Assets
244,669
234,939
Assets
Financial assets
Total financial assets
Non financial assets
Inventories
Other non financial assets
Liabilities
Payables
12
8,882
6,481
Provisions
13
14,576
13,611
Other liabilities
14
2,056
2,503
25,514
22,595
219,155
212,344
Total liabilities
Net assets
Equity
Accumulated surplus/(deficit)
15
92,744
86,342
Reserves
15
41,024
41,024
Contributed capital
15
85,387
84,978
219,155
212,344
Net worth
Commitments for expenditure
18
Contingent assets and contingent liabilities
20
The above balance sheet should be read in conjunction with the accompanying notes.
Annual Report 2011
51
Statement of Changes in Equity
For the year ended 31 December 2011
Equity at
1 Jan 2011
$’000
Total
Comprehensive
result
$’000
Transactions
with owners in
their capacity
as owners
$’000
Equity at
31 Dec 2011
$’000
86,342
6,402
-
92,744
-
-
-
-
Accumulated surplus/(deficit)
at the end of the year
86,342
6,402
-
92,744
Contribution by owners
84,978
Note
Accumulated surplus/(deficit)
Adjustment due to changes in accounting policy
-
409
85,387
-
-
-
-
-
-
-
84,978
-
409
85,387
Contributed capital
Withdrawal of equity
Contribution by owners at the end of the year
Physical assets revaluation reserve
41,024
-
-
41,024
Financial assets available-for-sale reserve
-
-
-
-
Adjustments due to change in accounting policy
-
-
-
-
41,024
-
-
41,024
212,344
6,402
409
219,155
Equity at
1 Jan 2010
$’000
Total
Comprehensive
result
$’000
Transactions
with owners in
their capacity
as owners
$’000
Equity at
31 Dec 2010
$’000
64,540
21,802
-
86,342
-
-
-
-
Accumulated surplus/(deficit)
at the end of the year
64,540
21,802
-
86,342
Contribution by owners
84,978
-
-
84,978
Contributed capital
-
-
-
-
Withdrawal of equity
-
-
-
-
84,978
-
-
84,978
41,024
-
-
41,024
Financial assets available-for-sale reserve
-
-
-
-
Adjustments due to change in accounting policy
-
-
-
-
41,024
-
-
41,024
Total equity at the end of the year
Note
Accumulated surplus/(deficit)
Adjustment due to changes in accounting policy
Contribution by owners at the end of the year
Physical assets revaluation reserve
Total equity at the end of the year
190,542
21,802
-
212,344
The above statement of changes in equity should be read in conjunction with the accompanying notes.
52
Chisholm Institute
Cash Flow Statement
For the year ended 31 December 2011
2011
$’000
2010
$’000
97,061
82,177
7,567
24,184
42,320
37,397
876
3,511
Interest received
1,022
1,000
Other receipts
2,242
2,174
151,088
150,443
Payments to employees
(91,169)
(90,626)
Payments to suppliers
(33,751)
(34,674)
(2,587)
(3,618)
(127,507)
(128,918)
23,581
21,525
(12,921)
(24,563)
21
63
2,000
6,000
(10,900)
(18,500)
12,681
3,025
13,696
10,671
26,377
13,696
Note
Cash flows from operating activities
Receipts
Government contributions- operating
Government contributions- capital
User fees and charges
Goods and services tax recovered from the ATO
Total receipts
Payments
Goods and services tax paid
Total Payments
Net cash provided by/ (used in) operating activities
Cash flows from investing activities
Payments for non financial assets
Proceeds from sale of non financial assets
Proceeds from maturation of financial assets
Net cash provided by/(used in) investing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Cash and cash equivalents at the end of the financial year
5
The above cash flow statement should be read in conjunction with the accompanying notes.
Annual Report 2011
53
Notes to the Financial Statements
For the year ended 31 December 2011
1.Statement of significant accounting policies
The annual financial statements represent the audited general purpose financial statements and notes of Chisholm Institute of
TAFE (the Institute).
1.01Statement of compliance
These general purpose financial statements have been prepared in accordance with the Financial Management Act 1994
(FMA) and applicable Australian Accounting Standards (AAS) which include Interpretations, issued by the Australian Accounting
Standards Board (AASB). In particular, they are presented in a manner consistent with the requirements of the AASB 1049 Whole of
Government and General Government Sector Financial Reporting.
Where appropriate, those AAS paragraphs applicable to not-for-profit entities have been applied.
Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the
concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is
reported.
1.02 Basis of preparation
The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity,
income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.
These financial statements are presented in Australian dollars, the functional and presentation currency of the Institute.
In the application of AAS, judgements, estimates and assumptions are required to be made about the carrying values of assets
and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on
professional judgements derived from historical experience and various other factors that are believed to be reasonable under the
circumstances. Actual results may differ from these estimates.
The estimates and associated assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements made by
management in the application of AASs that have significant effects on the financial statements and estimates, with a risk of
material adjustments in the next year, are disclosed throughout the notes to the financial statements.
These financial statements have been prepared in accordance with the historical cost convention. Historical cost is based on the
fair values of the consideration given in exchange for assets.
Exceptions to the historical cost convention include:
• non-financial physical assets which, subsequent to acquisition, are measured at a revalued amount being their fair
value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses.
Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their
fair value
• the fair value of an asset other than land is generally based on its depreciated replacement value
• certain liabilities that are calculated with regard to actuarial assessments; and
• available-for-sale investments which are measured at fair value with movements reflected in equity until the asset
is derecognised.
The accounting policies set out below have been applied in preparing the financial statements for the year ended 31 December
2011 and the comparative information presented for the year ended 31 December 2010.
54
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
The following is a summary of the material accounting policies adopted by the Institute in the preparation of the financial
statements. The accounting policies have been consistently applied unless otherwise stated.
1.03 Reporting entity
The financial statements cover the Chisholm Institute of TAFE as an individual reporting entity. The Institute is a statutory body
corporate, established pursuant to an act made by the Victorian Government under the Education and Training Reform Act 2006
Section 3.1.12 4(a).
Its principal address is:
Chisholm Institute of TAFE
121 Stud Road
Dandenong VIC 3175
1.04 Basis of Consolidation
The Institute operates a controlled entity, the Caroline Chisholm Education Foundation. All transactions related to the operation of
the Caroline Chisholm Education Foundation are reported separately and not consolidated based on the view that the figures are
immaterial.
1.05 Events after reporting date
Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an
agreement between the Institute and other parties, the transactions are only recognised when the agreement is irrevocable at
or before balance date. Adjustments are made to amounts recognised in the financial statements for events which occur after
the reporting date and before the date the statements are authorised for issue, where those events provide information about
conditions which existed at the reporting date. Note disclosure is made about events between the reporting date and the date
the statements are authorised for issue where the events relate to a condition which arose after the reporting date and which may
have a material impact on the results of subsequent years.
1.06Goods and Services Tax (GST)
Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from
the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable (i.e. on a gross basis). The net amount of
GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.
Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and
financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.
Commitments and contingent assets or liabilities are also presented on a gross basis.
Annual Report 2011
55
Notes to the Financial Statements
For the year ended 31 December 2011
1.07Income from Transactions
Amounts disclosed as income is where applicable, net of returns, allowances and duties and taxes. Revenue is recognised for each
of the Institute’s major activities as follows:
Government Contributions
Government contributions are recognised as revenue in the period when the Institute gains control of the contributions. Control is
recognised upon receipt or notification by relevant authorities of the right to receive a contribution for the current period.
Fee for service
Fee for service revenue is recognised by reference to the percentage completion of each contract, i.e. in the reporting period
in which the services are rendered. Where fee for service revenue of a reciprocal nature has been clearly received in respect of
programs or services to be delivered in the following year, such amounts are disclosed as revenue in advance.
Student fees and charges
Student fees and charges revenue is recognised by reference to the percentage of services provided. Where student fees and
charges revenue has been clearly received in respect of courses or programs to be delivered in the following year, any nonrefundable portion of the fees are treated as revenue in the year of receipt and the balance as revenue in advance.
Revenue from sale of goods
Revenue from sale of goods is recognised by the Institute when:
-The significant risks and rewards of ownership of the goods have been transferred to the buyer;
-The Institute retains neither continuing managerial involvement to the degree usually associated with ownership nor effective
control over the goods sold;
- The amount of revenue can be reliably measured; and
-It is probable that the economic benefits associated with the transaction will flow to the Institute and the costs incurred or to be
incurred in respect of the transaction can be measured reliably.
Interest income
Interest income from cash, short-term deposits and investments is brought to account on a time proportional basis taking into
account interest rates applicable to the financial assets.
Net realised and unrealised gains and losses on the revaluation of investments do not form part of income from transactions, but
are reported as part of income from other economic flows in the net result or as unrealised gains and losses taken direct to equity,
forming part of the total change in net worth in the comprehensive result.
Other income
Rental income is recognised on a time proportional basis and is brought to account when the Institute’s right to receive the rental is
established.
Fair value of assets received free of charge or for nominal consideration
Contributions of resources received free of charge or for nominal consideration are recognised at their fair value when the
transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the
contributions. Contributions in the form of services are only recognised when a fair value can be reliably determined and the
services would have been purchased if not donated.
56
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
1.08 Expenses from transactions
Employee benefits
Expense for employee benefits are recognised when incurred, except for contributions in respect of defined benefit plans.
Retirement benefit obligations
(i) Defined contribution plan
Contributions to defined contribution plans are expensed when they become payable.
(ii) Defined benefit plans
The amount charged to the comprehensive operating statement in respect of superannuation represents the contributions made by
the Institute to the superannuation plan in respect of current services of current Institute staff. Superannuation contributions are
made to the plans based on the relevant rules of each plan.
The Institute does not recognise any deferred liability in respect of the plan(s) because the Institute has no legal or constructive
obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as and
when they fall due. The Department of Treasury and Finance recognises and discloses the State’s defined benefit liabilities in
its finance report.
Depreciation
Depreciation is provided on property, plant and equipment, including freehold buildings but excluding land. Depreciation is generally
calculated on a straight-line basis so as to write off the net cost or other re-valued amount of each asset over its expected useful
life to its estimated residual value. Leasehold improvements are depreciated over the period of the lease or estimated useful life,
whichever is the shorter, using the straight-line method. The estimated useful lives, residual values and depreciation method are
reviewed at the end of each annual reporting period.
Depreciation methods and rates are used for each class of depreciable assets.
Method
Rates
Buildings
Class of assets
Straight line
1.64%- 14.28%
2010 1.64%-14.28%)
Land Improvements
Straight line
2.50%- 6.67%
2010: 2.50% -6.67%)
Plant and Equipment
Straight line
10.00%-34.00%
(2010: 10.00% -34.00%)
Motor Vehicles
Straight line
15.00%
(2010:15.00%)
Library Collections
Straight line
20.00%
(2010:20.00%)
The assets’ residual values and useful lives are reviewed and adjusted if appropriate on an annual basis.
Grants and other transfers
Grants and other transfers to third parties are recognised as an expense in the reporting period in which they are paid or payable.
Annual Report 2011
57
Notes to the Financial Statements
For the year ended 31 December 2011
Other operating expenses
Supplies and services
Supplies and services expenses are recognised as an expense in the reporting period in which they are incurred. The carrying
amounts of any inventories held for distribution are expensed when distributed.
Fair value of assets provided free of charge or for nominal consideration
Resources provided free of charge or for nominal consideration are recognised at their fair value.
1.09 Other economic flows included in net result
Other economic flows measure the change in volume of value of assets or liabilities that do not result from transactions.
Net gain/(loss) on non financial assets
Net gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses from revaluations,
impairments, and disposals of all physical assets.
Disposal of non-financial assets
Any gain or loss on disposal of non-financial assets is recognised at the date control of the asset is passed to the buyer and is
determined after deducting from the proceeds the carrying value of the asset at the time.
Impairment of assets
Assets are assessed annually for indications of impairment, except for:
-Inventories
- Financial assets
- Investment property that is measured at fair value; and
- Non-current assets held for sale.
If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible
recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by a charge to
the comprehensive operating statement, except to the extent that the write down can be debited to an asset revaluation reserve
amount applicable to that class of asset.
If there is an indication that there has been a change in the estimate of an asset’s recoverable amount since the last impairment
loss was recognised, the carrying amount shall be increased to its recoverable amount. This reversal of the impairment loss occurs
only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net
of depreciation or amortisation, if no impairment loss had been recognised in prior years.
It is deemed that, in the event of the loss or destruction of an asset, the future economic benefits arising from the use of the
asset will be replaced unless a specific decision to the contrary has been made.
58
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell.
Recoverable amount for assets held primarily to generate net cash flows is measured at the higher of the present value of future
cash flows expected to be obtained from the asset and fair value less costs to sell. It is deemed that, in the event of the loss of an
asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has
been made.
Net gain/ (loss) on financial instruments
Net gain/(loss) on financial instruments includes realised and unrealised gains and losses from revaluations of financial instruments
that are designated at fair value through profit or loss or held-for-trading, impairment and reversal of impairment for financial
instruments at amortised cost, and disposals of financial assets.
Revaluation of financial instruments at fair value
The revaluation gain/(loss) on financial instruments at fair value excludes dividends or interest earned on financial assets, which is
reported as part of income from transactions.
Impairment of financial assets
Bad and doubtful debts are assessed on a regular basis. Those bad debts considered as written off by mutual consent are classified
as a transaction expense. The allowance for doubtful receivables and bad debts not written off by mutual consent are adjusted as
‘other economic flows’.
Other gains/(losses) from economic flows
Other gains/(losses) from other economic flows include the gains or losses from reclassifications of amounts from reserves and/or
accumulated surplus to net result, and from the revaluation of the present value of the annual and long service leave liabilities due
to changes in the bond interest rates.
1.10 Financial assets
Cash and deposits
Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and those highly liquid
investments with an original maturity of three months or less, which are held for the purpose of meeting short term cash
commitments rather than for investment purposes, and which are readily convertible to known amounts of cash and are subject to
an insignificant risk of changes in value.
For cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as
borrowings on the balance sheet.
Receivables
Receivables consist of:
• statutory receivables, which include predominantly amounts owing from the Victorian Government and GST input tax
credits recoverable; and
• contractual receivables, which include mainly debtors in relation to goods and services, loans to third parties, accrued
investment income, and finance lease receivables.
Receivables that are contractual are classified as financial instruments. Statutory receivables are not classified as financial
instruments.
Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest
method, less an allowance for impairment.
Annual Report 2011
59
Notes to the Financial Statements
For the year ended 31 December 2011
A provision for doubtful receivables is made when there is objective evidence that the debts may not be collected and bad debts are
written off when identified.
Investments and other financial assets
Investments are classified in the following categories:
• financial assets at fair value through profit or loss,
• loans and receivables, and
• available for sale financial assets.
The classification depends on the purpose for which the investments were acquired. Management determines the classification
of its investments at initial recognition.
Any dividend or interest earned on the financial asset is recognised in the consolidated comprehensive operating statement as
a transaction.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:
• the rights to receive cash flows from the asset have expired; or
• the Institute retains the right to receive cash flows from the asset, but has assumed an obligation to pay
• them in full without material delay to a third party under a ‘pass through’ arrangement; or
• the Institute has transferred its rights to receive cash flows from the asset and either:
(a) has transferred substantially all the risks and rewards of the asset, or
(b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control
of the asset.
Where the Institute has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is
recognised to the extent of the Institute’s continuing involvement in the asset.
At the end of each reporting period, the Institute assesses whether there is objective evidence that a financial asset or group of
financial assets is impaired. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more
than 60 days overdue, and changes in debtor credit ratings. All financial instrument assets, except those measured at fair value
through profit or loss, are subject to annual review for impairment.
Bad and doubtful debts for financial assets are assessed on a regular basis. Those bad debts considered as written off by mutual
consent are classified as a transaction expense. Bad debts not written off by mutual consent and the allowance for doubtful
receivables are classified as ‘other economic flows’ in the net result.
The amount of the allowance is the difference between the financial asset’s carrying amount and the present value of estimated
future cash flows, discounted at the effective interest rate.
In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional
judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with
AASB 136 Impairment of Assets.
60
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
1.11Leases
A lease is a right to use an asset for an agreed period of time in exchange for payment.
Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement
so as to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance
infrastructure leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership from the lessor
to the lessee. All other leases are classified as operating leases.
Finance leases
Institute as lessor
Amounts due from lessees under finance leases are recorded as receivables. Finance lease receivables are initially recorded at
amounts equal to the present value of the minimum lease payments receivable plus the present value of any unguaranteed residual
value expected to accrue at the end of the lease term. Finance lease receipts are apportioned between periodic interest income
and reduction of the lease receivable over the term of the lease in order to reflect a constant periodic rate of return on the net
investment outstanding in respect of the lease.
Institute as lessee
At the commencement of the lease term, finance leases are initially recognised as assets and liabilities at amounts equal to the fair
value of the lease property or, if lower, the present value of the minimum lease payment, each determined at the inception of the
lease. The lease asset is depreciated over the shorter of the estimated useful life of the asset or the term of the lease.
Minimum finance lease payments are apportioned between reduction of the outstanding lease liability, and periodic finance expense
which is calculated using the interest rate implicit in the lease and charged directly to the comprehensive operating statement.
Operating leases
Institute as lessee
Operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating
statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time
pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the balance sheet.
All incentives for the agreement of a new or renewed operating lease are recognised as an integral part of the net consideration
agreed for the use of the leased asset, irrespective of the incentive’s nature or form or the timing of payments.
In the event that lease incentives are received to enter into operating leases, the aggregate cost of incentives are recognised as a
reduction of rental expense over the lease term on a straight-line basis, unless another systematic basis is more representative of
the time pattern in which economic benefits from the leased asset are consumed.
Annual Report 2011
61
Notes to the Financial Statements
For the year ended 31 December 2011
1.12 Non financial assets
Inventories
Inventories include goods and other property held either for sale or for distribution at no or nominal cost in the ordinary course
of business operations.
Inventories, including land held for sale, are measured at the lower of cost and net realisable value.
Cost for all other inventory is measured on the basis of weighted average cost.
Inventories acquired for no cost or nominal considerations are measured at current replacement cost at the date of acquisition.
Non-current physical assets classified as held-for-sale, including disposal group assets
Non-financial physical assets (including disposal group assets) are treated as current and classified as held for sale if their carrying
amount will be recovered through a sale transaction rather than through continuing use
This condition is regarded as met only when:
• The asset is available for immediate use in the current condition; and
• The sale is highly probable and the asset’s sale is expected to be completed within twelve months from the date
of classification.
These non-financial physical assets, related liabilities and financial assets are measured at the lower of carrying amount and fair
value less costs to sell, and are not subject to depreciation or amortisation.
Property, plant and equipment
All non-financial physical assets, are measured initially at cost and subsequently revalued at fair value less accumulated depreciation
and impairment.
The initial cost for non-financial physical assets under a finance lease is measured at amounts equal to the fair value of the leased
asset or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease.
Where an asset is received for no or nominal consideration, the cost is the asset’s fair value at the date of acquisition.
The fair value of infrastructure systems and plant, equipment and vehicles, is normally determined by reference to the asset’s
depreciated replacement cost, or where the infrastructure is held by a for profit entity, the fair value may be derived from
estimates of the present value of future cash flows. For plant, equipment and vehicles, existing depreciated historical cost is
generally a reasonable proxy for depreciated replacement cost because of the short lives of the assets concerned.
Certain assets are acquired under finance leases, which may form part of a service concession arrangement.
The cost of constructed non-financial physical assets includes the cost of all materials used in construction, direct labour on the
project, and an appropriate proportion of variable and fixed overheads.
Where an asset is received for no or nominal consideration, the cost is the asset’s fair value at the date of acquisition.
For the accounting policy on impairment of non-financial physical assets refer to Note on Impairment of non-financial assets.
62
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
Library collections
Library collections are measured at cost or fair value as indicated less, where applicable, any accumulated depreciation and
impairment losses.
Leasehold improvements
The cost of a leasehold improvement is capitalised as an asset and depreciated over the remaining term of the lease or the
estimated useful life of the improvements, whichever is the shorter.
Non financial physical assets constructed by the Institute
The cost of non-financial physical assets constructed by the Institute includes the cost of all materials used in construction, direct
labour on the project, and an appropriate proportion of variable and fixed overheads.
Revaluations of non-current physical assets
Non-current physical assets measured at fair value are revalued in accordance with FRDs issued by the Minister for Finance.
This revaluation process normally occurs every five years, based upon the asset’s Government Purpose Classification, but may
occur more frequently if fair value assessments indicate material changes in values. Revaluation increases or decreases arise
from differences between an asset’s carrying value and fair value.
Revaluation increases are credited directly to equity in the revaluation surplus, except to the extent that an increase reverses
a revaluation decrease in respect of that class of property, plant and equipment, previously recognised as an expense (other
economic flows) in the net result, the increase is recognised as income (other economic flows) in determining the net result.
Revaluation decreases are recognised immediately as expenses (other economic flows) in the net result, except to the extent that
a credit balance exists in the revaluation surplus in respect of the same class of property, plant and equipment, they are debited to
the revaluation reserve.
Revaluation increases and revaluation decreases relating to individual assets within a class of property, plant and equipment are
offset against one another within that class but are not offset in respect of assets in different classes.
When revalued assets are sold, it is Institute policy to transfer the amounts included in other reserves in respect of these assets
to accumulated funds.
Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the
net amount is restated to the revalued amount of the asset.
Non-current physical assets constructed by the Institute
The cost of non-current assets constructed by the Institute includes the cost of all materials used in construction, direct labour
on the project, and an appropriate proportion of variable and fixed overheads.
Annual Report 2011
63
Notes to the Financial Statements
For the year ended 31 December 2011
Intangibles
Intangible assets represent identifiable non-monetary assets without physical substance. Intangible assets are recognised at
cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated
impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future
economic benefits will flow to the Institute.
Intangible assets are measured at cost less accumulated amortisation and impairment, and are amortised on a straight-line basis
over their useful lives as follows:
2011
Capitalised software development cost (years)
4
1.13Liabilities
Payables
Payables consist of:
• Contractual payables, such as accounts payable, and unearned income including deferred income from concession
arrangements. Accounts payable represent liabilities for goods and services provided to the Institute prior to the end of
the financial year that are unpaid, and arise when the Institute becomes obliged to make future payments in respect of the
purchase of those goods and services; and
• Statutory payables, such as goods and services tax and fringe benefits tax payables.
Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost.Statutory
payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not
included in the category of financial liabilities at amortised cost, because they do not arise from a contract.
Provisions
Provisions are recognised when the Institute has a present obligation, the future sacrifice of economic benefits is probable, and the
amount of the provision can be measured reliably.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at
reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the
cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows
Employee benefits
The calculation of employee benefits includes all relevant on-costs and is calculated as follows at reporting date.
(i)
Wages, salaries and annual leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12
months of the reporting date are recognised in the provision for employee benefits in respect of employee services up to
the reporting date, classified as current liabilities and measured at their nominal values.
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulated sick leave expected
to be settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of
employee services up to the reporting date, classified as current liabilities and measured at their nominal values.
Liabilities that are not expected to be settled within 12 months of the reporting date are recognised in the provision for
employee benefits as current liabilities, measured at present value of the amounts expected to be paid when the liabilities
are settled using the remuneration rate expected to apply at the time of settlement.
64
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
(ii)Long service leave
Liability for long service leave (LSL) is recognised in the provision for employee benefits.
Current Liability - unconditional LSL representing seven years of service is disclosed as a current liability even when the
Institute does not expect to settle the liability within 12 months because it will not have the unconditional right to defer
settlement of the entitlement should an employee take leave within 12 months.
The components of this current liability are measured at:
•
Present value - component that is not expected to be settled within 12 months
•
Nominal value - component that is expected to be settled within 12 months
Non-current liability - conditional LSL representing less than seven years is disclosed as a non - current liability. There is an
unconditional right to defer settlement of the entitlement until the employee has completed the requisite years of service.
This non-current LSL liability is measured at present value. Gain or loss following revaluation of the present value of noncurrent LSL liability due to changes in bond interest rates is recognised as an ‘other economic flow’.
(iii)
Termination benefits
Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee
accepts voluntary redundancy in exchange for these benefits. The Institute recognises termination benefits when it is
demonstrably committed to either terminating the employment of current employees according to a detailed formal plan
without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary
redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to present value.
Employee benefits on-costs
Employee benefits on-costs (payroll tax, workers compensation, superannuation, annual leave and long service leave accrued
while on LSL taken in service) are included in the provision for employee benefits.
Performance payments
Performance payments for TAFE Executive Officers are based on a percentage of the annual salary package provided under
the contract of employment. A liability is provided for under the term of the contracts at reporting date and paid out in the next
financial year.
Onerous contracts
An onerous contract is considered to exist where the Institute has a contract under which the unavoidable cost of meeting
the contractual obligations exceed the economic benefits estimated to be received. Present obligations arising under onerous
contracts are recognised as a provision to the extent that the present obligation exceeds the economic benefits estimated
to be received.
1.14Commitments
Commitments include those operating, capital and other outsourcing commitments arising from non - cancellable contractual or
statutory sources and are disclosed at their nominal value and inclusive of the GST payable.
1.15Contingent assets and liabilities
Contingent assets and liabilities are not recognised in the balance sheet, but are disclosed by way of a note (refer note 20) and,
if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of the GST receivable or
payable respectively.
Annual Report 2011
65
Notes to the Financial Statements
For the year ended 31 December 2011
1.16Equity
Contributed capital
Funding that is in the nature of contributions by the State Government are treated as contributed capital when designated in
accordance with UIG Interpretation 1038 Contribution by Owners Made to Wholly-Owned Public Sector Entities. Commonwealth
capital funds are not affected and are treated as income.
1.17 Foreign currency transactions
Functional and presentation currency
The Institute’s financial statements are presented in Australian dollars which is the entity’s functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the
transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured at
historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair
value are reported at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in the income statement in the period in which
they arise, except where deferred in equity as a qualifying cash flow or net investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent that the
gain or loss is directly recognised in equity; otherwise the exchange differences are recognised in the comprehensive operating
statement.
1.18Materiality
In accordance with Accounting Standard AASB1031 ‘Materiality’, accounting policies need only be identified in the summary
of accounting policies where they are considered ‘material’. Accounting policies will be considered material if their omission,
misstatement or non-disclosure has the potential, individually or collectively, to:
(a) influence the economic decisions of users taken on the basis of the financial statements; and
(b) affect the discharge of accountability by the management or governing body of the entity.
1.19 Rounding of amounts
Amounts in the financial statements have been rounded to the nearest thousand dollars, unless otherwise stated.
1.20Comparative information
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the
current financial year.
1.21 New accounting standards and interpretations
Certain new accounting standards and interpretations have been published that are not mandatory for the 31 December 2011
reporting period.
As at 31 December 2011, the following standards and interpretations applicable to the Institute had been issued but were not
mandatory for financial year ending 31 December 2011. The Institute has not, and does not intend to, adopt these standards early.
66
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
Amending Pronouncements
and Errata
Standards Affected
Outline of Amendment
Application
date of
standard
Impact on financial
statements
AASB 9 Financial Instruments
AASB 139 Financial
Instruments:
Recognition and
Measurement
This standard simplifies
requirements for the classification
and measurement of financial
assets resulting from Phase 1
of the IASB’s project to replace
IAS 39 Financial Instruments:
Recognition and Measurement
Reporting
periods
beginning on
1 January 2013
Detail of impact is still
being assessed
This standard establishes a
differential financial reporting
framework consisting of two
tiers of reporting requirements
for preparing general purpose
financial statements
Reporting
periods
beginning on
1 July 2013
The Victorian
Government is currently
considering the impacts
of reduced disclosure
requirements (RDRs)
for certain public sector
entities and has not
decided if RDRs will
be implemented in the
Victorian public sector
This standard gives effect to
consequential changes arising
from the issuance of AASB 9
Reporting
periods
beginning on
1 January 2013
Detail of impact is still
being assessed
These amendments introduce
reduced disclosure requirements
for application by certain types of
entities
Reporting
periods
beginning on
1 July 2013
The amendments do
not affect financial
measurement or
recognition and are
not expected to have
any impact on financial
result or position
This relates to the introduction of
AASB 9 Financial instruments
Reporting
periods
beginning on
1 January 2013
Detail of impact is still
being assessed
AASB 1053 Application of Tiers of
Australian Accounting Standards
AASB 2009 11 Amendments to
Australian Accounting Standards
arising from AASB 9
AASB 1, 3, 4, 5, 7,
101, 102, 108, 112,
118, 121, 127, 128,
131, 132, 136, 139,
1023 and 1038 and
Interpretations 10
and 12
AASB 2010 2 Amendments to
Australian Accounting Standards
arising from Reduced Disclosure
Requirements
AASB 2010 7 Amendments to
Australian Accounting Standards
arising from AASB 9 (December
2010)
AASB 1, 3, 4, 5, 7, 101,
102, 108, 112, 118,
120, 121, 127, 128,
131, 132, 136, 137,
139, 1023 and 1038
and Interpretations 2,
5, 10, 12, 19 and 127
Annual Report 2011
67
Notes to the Financial Statements
For the year ended 31 December 2011
Amending Pronouncements
and Errata
Standards Affected
Outline of Amendment
Application
date of
standard
Impact on financial
statements
AASB 2011 2 Amendments to
Australian Accounting Standards
arising from the Trans Tasman
Convergence Project – Reduced
Disclosure Requirements
AASB 101 and AASB
1054
The objective of this amendment
is to include some additional
disclosure from the Trans Tasman
Convergence Project and to
reduce disclosure requirements for
entities preparing general purpose
financial statements under
Australian Accounting Standards –
Reduced Disclosure Requirements
(RDRs)
Reporting
periods
beginning on
1 January 2013
The Victorian
Government is currently
considering the impacts
of RDRs and has not
decided if they will be
implemented in the
Victorian public sector
AASB 2011 3 Amendments to
Australian Accounting Standards
– Orderly Adoption of Changes to
the ABS GFS Manual and Related
Amendments
AASB 1049
This amends AASB 1049 to
clarify the definition of the ABS
GFS Manual, and to facilitate
the adoption of changes to the
ABS GFS Manual and related
disclosures
Reporting
periods
beginning on
July 2012
There will be no impact
on performance
measurement
This amendment provides
clarification to users on the
version of the GFS Manual to be
used and what to disclose if the
latest GFS Manual is not used
68
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
2011
2010
$’000
$’000
Recurrent contributions
25,255
64,761
Contestable contributions
51,914
11,953
Other contributions
12,128
9,274
89,297
85,988
7,165
23,977
402
1,318
7,567
25,295
96,864
111,283
11,158
10,550
Fee for service - Government
8,924
9,093
Fee for service - International Operations - onshore
6,342
9,791
Fee for service - International Operations - offshore
3,370
2,367
Fee for service - Other
6,393
7,388
25,029
28,639
671
810
36,858
39,999
982
1,002
0
450
419
424
Donations bequests and contributions
10
10
Scholarships
(4)
35
Other
1,137
892
Total other income
1,562
1,361
Note
2. Income from transactions
(a) Grants and other transfers
Government financial assistance
(i) Government contributions - operating
Total Government contributions - operating
(ii) Government contributions - capital
Commonwealth capital
State capital
Total Government contributions – capital
Total Government financial assistance
(b) Sale of goods and services
Student fees and charges
Rendering of services
Total rendering of services
Other non-course fees and charges
Sale of goods
Total income from sale of goods and services
(c) Interest
Interest on bank deposits
(d) Fair value of assets received free of charge or for nominal consideration
Building improvements and equipment
(e) Other income
Rental revenue
Annual Report 2011
69
Notes to the Financial Statements
For the year ended 31 December 2011
2011
2010
$’000
$’000
74,732
76,030
Superannuation
6,462
6,883
Payroll tax
4,041
4,128
Note
3. Expenses from transactions
(a) Employee expenses
Salaries, wages, overtime and allowances
Worker’s compensation
694
548
1,045
1,360
775
731
1,735
874
128
183
89,612
90,737
Buildings
4,501
4,104
Plant and equipment
1,508
1,450
Motor vehicles
111
106
Library collections
190
182
35
25
6,345
5,867
12
0
6,357
5,867
17
20
Purchase of supplies and consumables
4,979
5,715
Communication expenses
1,233
1,378
Contract and other services
5,570
5,339
101
44
3,111
3,182
Other financing costs (other than interests)
101
82
Minor tools and equipment
151
140
2,569
3,158
Long service leave
Annual leave
Termination benefits
Other
Total employee benefits
(b) Depreciation and amortisation
Land improvements
Total depreciation
Software
Total depreciation and amortisation
(c) Grants and other transfers
Grants and subsidies to apprentices and trainees
(d) Supplies and services
Cost of goods sold/distributed (ancillary trading)
Building repairs and maintenance
Equipment below capitalisation threshold
Fees and charges
Total suppliers and services
70
Chisholm Institute
3,993
5,177
21,808
24,215
Notes to the Financial Statements
For the year ended 31 December 2011
2011
2010
$’000
$’000
Marketing and promotional expenses
1,612
1,766
Utilities
1,590
1,571
Audit fees and services
155
156
Staff development
662
716
Travel and motor vehicle expenses
2,520
2,025
Other expenses
2,062
2,913
Total general expenses
8,601
9,147
Operating lease rental expenses
1,229
1,252
Total other expenses
9,830
10,399
Net gain/(loss) on disposal of physical assets
(59)
(11)
Total net gain/(loss) arising from non financial assets
(59)
(11)
Loans and receivables
(13)
(367)
Total net gain/(loss) on financial instruments
(13)
(367)
(1,765)
(370)
(403)
(307)
Total other gains/(losses) from other economic flows
(2,168)
(677)
Total other economic flows included in net result
(2,240)
(1,055)
2,662
2,395
23,715
8,301
-
3,000
26,377
13,696
Note
(e) Other expenses
General expenses
4. Other economic flows included in net result
(a) Net gain/(loss) on non financial assets
(b) Net gain/(loss) statutory receivables/payables or:
(c) Other gains/(losses) from other economic flows
Net gain/(loss) arising from revaluation of long service leave liabilities
Net gain/(loss) arising from revaluation of annual leave liabilities
5. Cash and cash equivalents
Cash at bank and on hand
Deposits at call
Floating rate notes
Total cash and cash equivalents
Annual Report 2011
71
Notes to the Financial Statements
For the year ended 31 December 2011
2011
2010
$’000
$’000
Balances as above
26,377
13,696
Balances as per cash flow statement
26,377
13,696
1,847
1,837
(13)
(367)
904
1,115
Note
(a) Reconciliation of cash at the end of the year
The above figures are reconciled to cash at the end of the financial year as shown
in the statement of cash flows as follows:
(b) Cash at bank and on hand
Cash at bank is bearing floating interest rates between 4.13% and 3.63% (2010: 2.63% and 4.13%)
(c) Deposits at call
The deposits are bearing floating interest rates between 4.95% and 4.20% (2010: 3.20% and 4.95%)
6. Receivables
Current receivables
Contractual
Trade receivables
Provision for doubtful trade receivables (a) (See also Note 6(a) below)
Other debtors
(a)
Revenue receivable
2,064
9,514
Total contractual receivables
4,802
12,099
GST receivable from the ATO
0
571
Total statutory receivables
0
571
4,802
12,670
Statutory
Total current receivables
The average credit period on sales of goods is 21 days. No interest is charged on receivables for the first 21 days from the date of the invoice or thereafter.
(a) Movement in the provision for doubtful trade receivables
Balance at the beginning of the year
Reversal of unused provision recognised in net result
(146)
136
48
Increase in provision recognised in net result
(13)
(367)
Reversal of provision for uncollectable receivables written off during the year
231
98
Balance at the end of the year
(13)
(367)
(b) Ageing analysis of contractual receivables
Refer to Note 27 for the ageing analysis of contractual receivables
(c) Nature and extent of risk arising from contractual receivables
Refer to Note 27 for a review of the nature and extent of risk arising from
contractual receivables
72
(367)
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
2011
2010
$’000
$’000
0
2,000
Floating rate notes
-
-
Total investments, loans and financial assets
0
2,000
Supplies and consumables – at cost
162
153
Total current inventories
162
153
1,016
928
0
72
1,016
1,000
Note
7. Investment, loans and other financial assets
Current investments, loans, and financial assets
Floating rate notes
Non current investments, loans and financial assets
(a) Ageing analysis of investments, loans and financial assets
Refer to Note 27 for the ageing analysis of investments, loans and other financial
assets.
(b) Nature and extent of risk from investments, loans and other
financial assets
Refer to Note 27 for a review of the risks arising from investments, loans and other
financial assets.
8. Inventories
9. Other non financial assets
Total current other non-financial assets
Prepayments
Total non-current other financial assets
Prepayments
Total other non-financial assets
Annual Report 2011
73
Notes to the Financial Statements
For the year ended 31 December 2011
10. Property, plant and equipment
2011
Land
$’000
Buildings
$’000
Construction
in progress
$’000
Plant and
equipment
$’000
Motor
vehicles
$’000
Library
$’000
Land
imp.
$’000
Total
$’000
As at 1 Jan 2011
Cost
Valuation
33,910
Accumulated Depreciation
Opening net book
amount
18,338
18,338
152,100
18,245
840
2,439
790
208,324
(8,027)
(10,907)
(348)
(1,923)
(37)
(21,242)
33,910
144,073
18,338
7,338
492
516
753
205,420
33,910
144,073
18,338
7,338
492
516
753
205,420
11,618
1,259
0
155
37
13,069
(80)
(31)
0
0
0
(111)
15
16
Year ended 31 Dec 2011
Opening net book amount
Additions
Disposals
Depreciation write-back
Transfer to buildings
28,718
Transfer to plant and
equipment
0
(28,718)
(68)
Depreciation
Closing net book amount
31
(4,501)
33,910
168,225
1,170
68
0
(1,508)
(111)
(190)
(35)
(6,345)
7,074
381
481
823
212,064
At 31 Dec 2011
Cost
Valuation
Accumulated Depreciation
Net book amount
1,170
1,170
33,910
180,738
-
(12,514)
33,910
168,225
19,484
839
2,593
896
238,460
-
(12,410)
(458)
(2,112)
(73)
(27,566)
1,170
7,074
381
481
823
212,064
Independent valuation of land and buildings was performed by Cunningham Property Consultants Pty Ltd in accordance with accounting
standard AASB 116 Property, plant and equipment and AASB 136 Impairment of assets on 31 December 2008. For the year ended
31 December 2011, and per the guidelines of FRD103D Non current physical assets, the movement in land and building indices were
assessed to ensure that the Institute’s land and building assets are recorded at their fair value.
74
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
2010
Land
$’000
Buildings
$’000
Construction
in progress
$’000
Plant and
equipment
$’000
Motor
vehicles
$’000
Library
$’000
Land
imp.
$’000
Total
$’000
As at 1 Jan 2010
Cost
Valuation
Accumulated Depreciation
Net book amount
3,803
3,803
146,566
16,444
752
2,200
450
200,322
(3,924)
(11,802)
(298)
(1,741)
(12)
(17,777)
33,910
142,642
3,803
4,642
454
459
438
186,348
33,910
142,642
3,803
4,642
454
459
438
186,348
20,756
3,499
178
239
340
25,012
(2,385)
(90)
(2,475)
2,345
56
2,401
Year ended 31 Dec 2010
Opening net book amount
Additions
Disposals
Depreciation write-back
Transfer to buildings
5,534
Transfer to plant and
equipment
(687)
Depreciation
Closing net book amount
(4,103)
33,910
144,073
-
(5,534)
18,338
-
687
(1,450)
(106)
(182)
(25)
(5,866)
7,338
492
516
753
205,420
At 31 Dec 2010
Cost
Valuation
33,910
Accumulated Depreciation
Net book amount
18,338
18,338
33,910
152,100
18,245
840
2,439
790
208,324
(8,027)
(10,907)
(348)
(1,923)
(37)
(21,242)
7,338
492
516
753
205,420
144,073
18,338
Annual Report 2011
75
Notes to the Financial Statements
For the year ended 31 December 2011
11. Intangible Assets
Software
$’000
Total
$’000
-
-
-
-
260
260
Amortisation charge1
(12)
(12)
Closing net book amount
248
248
Software
$’000
Total
$’000
-
-
Opening net book amount
-
-
Additions from internal developments
-
-
Amortisation charge 1
-
-
Closing net book amount
-
-
2011
As at 1 Jan 2011
Cost
Accumulated amortisation and impairment
Net book amount
Year ended 31 Dec 2011
Opening net book amount
Additions from internal developments
Disposals
Impairment losses charged to net result
2010
As at 1 Jan 2010
Cost
Accumulated amortisation and impairment
Net book amount
Year ended 31 Dec 2010
Disposals
Impairment losses charged to net result
1 Amortisation charged is reported as an expense from transactions in the Comprehensive Operating Statement.
The Institute has capitalised software development expenditure for the upgrade of its Strata software.
The carrying amount of the capitalised software development expenditure is $0.25 million (2010: nil).
Its useful life is 4 years and will be fully amortised in 2014.
76
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
2011
2010
$’000
$’000
2011
2010
$’000
$’000
Supplies and services
3,972
5,380
Amounts payable to governments and agencies
3,659
0
GST payable
120
0
Group tax payable
731
544
Other taxes payable
401
558
8,882
6,481
8,882
6,481
Annual leave
1,513
1,627
Long service leave
1,465
1,381
292
250
Note
Note
12. Payables
Current
Contractual
Statutory
Total current payables
(a) Foreign currency risk
The carrying amounts of the entity’s payables are denominated in the following currency:
Australian dollars
Notes
1. The average credit period is 30 days. No interest is charged on the other payables
for the first 30 days from the date of the invoice or thereafter.
2. For an analysis of the sensitivity of payables to foreign currency risk refer to note
28.
Maturity analysis of contractual payables
Refer to Note 28 for maturity analysis of contractual payables.
13. Provisions
Current provisions expected to be settled within 12 months
Employee benefits
Performance payments
Time off in lieu
69
65
3,339
3,323
955
642
Long service leave
8,912
8,293
Subtotal
9,867
8,935
13,206
12,258
Subtotal
Current provision expected to be settled after 12 months
Annual leave
Total current provisions
Annual Report 2011
77
Notes to the Financial Statements
For the year ended 31 December 2011
2011
2010
$’000
$’000
Long service leave
1,370
1,353
Total non current provisions
1,370
1,353
14,576
13,611
13,611
13,684
2,045
2,339
(3,248)
(3,090)
2,168
678
14,576
13,611
Revenue in advance
2,056
2,503
Total current other liabilities
2,056
2,503
Note
Non current provisions
Total provisions
Movement in provisions
Movement in provisions during the financial year are set out below:
Carrying amount at the start of the year
Additional provisions recognised
Amounts used
Increase/(decrease) due to remeasurement
Carrying amount at the end of the year
14. Other Liabilities
Current
78
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
2011
2010
$’000
$’000
Balance at 1 January
84,978
84,978
Capital contributions
409
0
85,387
84,978
86,342
64,540
6,402
21,802
92,744
86,342
41,024
41,024
41,024
41,024
219,155
212,344
20,335
20,335
Revaluation increment on non-current asset
-
-
Revaluation (decrement) on non-current asset
-
-
20,335
20,335
Note
15. Equity
(a) Contributed capital
Balance at 31 December
(b) Accumulated surplus/(deficit)
Balance at 1 January
Net result for the year
Balance at 31 December
(c) Reserves
Composition of reserves
Physical asset revaluation surplus
Balance at the end of the year
Total Equity
Movement in reserves
Asset revaluation reserve - Land
Balance at 1 January
Balance at 31 December
Asset revaluation surplus - Buildings
Balance at 1 January
20,689
20,689
Revaluation increment on non-current asset
-
-
Revaluation (decrement) on non-current asset
-
-
20,689
20,689
Balance at 31 December
Annual Report 2011
79
Notes to the Financial Statements
For the year ended 31 December 2011
2011
2010
$’000
$’000
6,402
21,802
6,357
5,867
59
11
0
(450)
7,868
(6,097)
Decrease/(increase) in inventories
(9)
4
Decrease/(increase) in other assets
(15)
332
1,954
129
965
(73)
23,581
21,525
Within one year
1,416
10,653
Later than one year but not later than five years
1,261
-
Total capital expenditure commitments
2,677
10,653
GST reclaimable on the above
243
968
Net capital commitments
2,434
9,685
Within one year
1,629
1,036
Later than one year but not later than five years
2,536
1,841
Total lease commitments
4,165
2,877
GST reclaimable on the above
379
262
3,786
2,615
Note
16. Cash flow information
Reconciliation of operating result after income tax to net cash flows from
operating activities
Net result for the year
Non cash flows in operating result
Depreciation of non current assets
Net gain/(loss) on sale of non current assets
Assets received free of charge
Movements in operating assets and liabilities
Decrease/(increase) in trade receivables
Increase/(decrease) in payables
Increase/(decrease) in provisions
Net cash flows provided by operating activities
17. Ex gratia payments
Chisholm Institute of TAFE made a total of $57,995 in ex-gratia payments during 2011 (2010: 217,472).
18. Commitments for expenditure
Capital commitments
Capital expenditure contracted for at the reporting date but not recognised as
liabilities is as follows:
Payable:
Operating lease commitments
Operating lease commitments in relation to leases contracted for at the reporting
date but not recognised as liabilities are as follows:
Payable:
Net operating lease commitments
80
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
2011
2010
$’000
$’000
1,788
5,122
133
1,921
1,921
7,043
175
640
1,746
6,403
Within one year
6,515
3,971
Later than one year but not later than five years
4,920
1,564
11,435
5,535
333
383
Note
Other expenditure commitments
Expenditure commitments for maintenance services in existence at reporting date
but not recognised as liabilities are as follows:
Payable:
Within one year
Later than one year but not later than five years
Total other expenditure commitments
GST reclaimable on the above
Net other expenditure commitments
Remuneration commitments
Commitments for the payment of salaries and other remuneration under long
term employment contracts in existence at reporting date but not recognised as
liabilities are as follow:
Payable:
Total remuneration commitments
19. Leased Assets
Non cancellable operating lease receivables
Receivable:
Within one year
Later than one year but not later five years
250
636
Total lease receivables
583
1,019
GST payable on the above
53
93
530
926
Net operating lease receivables
The Institute leases out certain land, buildings and equipment, which are excess to
current requirements at current market rates.
20.Contingent assets and contingent liabilities
There were no contingent assets or liabilities as at 31 December 2011 (2010: Nil).
21. Economic dependency
Chisholm Institute of TAFE has substantial economic dependency on Government operating and capital contributions.
Annual Report 2011
81
Notes to the Financial Statements
For the year ended 31 December 2011
2011
2010
$’000
$’000
57
56
3
3
Remuneration of other auditors
95
97
Total Remuneration of Auditors
155
156
0
2
Revised scheme-
358
426
New scheme
639
662
4,278
4,418
HESTA
147
119
Australian Super
153
147
Host Plus
93
98
Unisuper
116
104
49
51
890
717
6,723
6,744
Note
22. Subsequent events
No matters or circumstances have arisen since the end of the reporting period
which significantly affected or may significantly affect the operations of the
Institute, the results of those operations, or the state of affairs on the Institute in
future financial years.
23. Remuneration of auditors
Remuneration of Victorian Auditor General’s Office for:
Audit of the Chisholm Institute of TAFE financial statements
Audit of the Caroline Chisholm Education Foundation financial statements
24. Superannuation
The Institute contributes to both defined benefit and defined contribution plans.
In accordance with accounting policy 1.13 the Institute does not recognise any
defined benefit liabilities. Contributions are included as part of employee benefits
in the comprehensive operating statement.
The name and details of the major superannuation funds and contributions made
by the Institute are as follows:
Emergency Services and State Super Fund (defined benefit)
SERB scheme
Victorian Superannuation Fund (defined contribution)
Vic Super
Other Superannuation Funds (defined contribution)
Health Super
Other superannuation funds
Total contribution to all funds
As at 31 December 2011 the Institute had $381,597 in outstanding
superannuation payments to a number of superannuation funds
(2010: $271,406).
As at 31 December 2011 there were no loans to the Institute from any funds (2010: Nil).
82
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
25. Key management personnel disclosures
In accordance with the directions of the Minister for Finance under the Financial Management Act 1994, the following disclosures are made
for the responsible Ministers and responsible Members of the Council.
(i)Minister
The relevant Minister is The Hon Peter Hall MP, Minister for Higher Education and Skills. Remuneration of the Ministers is disclosed
in the financial statements of the Department of Premier and Cabinet. Other relevant interests are declared in the Register of
Members interests which is completed by each member of the Parliament.
(ii)Members of the Chisholm Institute of TAFE Board
Name
Category of Appointment
Relevant Period
Mr David Willersdorf (President)
Ministerial
01/01/2011 - 31/12/2011
Mr Robert Comelli
Ministerial
01/01/2011 - 31/12/2011
Mr David Edgar
Ministerial
01/01/2011 - 31/12/2011
Ms Meg Collins-Hughes
Ministerial
01/01/2011 - 30/09/2011
Mr Lyndon Joss
Ministerial – Industry Member
01/01/2011 - 31/12/2011
Ms Tracey Davies
Ministerial – Industry Member
01/01/2011 - 31/12/2011
Prof. Wendy Cross
Ministerial – Industry Member
01/01/2011 - 31/12/2011
Mr Peter Malone
Elected Staff Member
01/01/2011 - 31/12/2011
Mr Leigh Grant
Elected Student Member
01/01/2011 - 31/03/2011
Mr David Muir
Elected Student Member
01/04/2011 - 11/10/2011
Mr Greg Hunt
Co-opted Member
01/01/2011 - 31/12/2011
Mr David Eynon
Co-opted Member
01/01/2011 - 31/12/2011
Mrs Maria Peters
Chief Executive Officer
01/01/2011 - 10/04/2011
16/04/2011 - 11/09/2011
29/09/2011 - 31/12/2011
Mr Peter Harrison
Chief Executive officer (Acting)
11/04/2011 - 15/04/2011
12/09/2011 - 28/09/2011
(ii) (b) Other Board Committee members:
Name
Board Commitee
Relevant Period
Mr Mel Pecen
Audit and Risk Management Committee
01/01/2011 - 31/12/2011
Mr Michael Said
Audit and Risk Management Committee
01/01/2011 - 31/12/2011
Mr Robert Johnson
Resource Management Committee
01/01/2011 - 31/12/2011
Annual Report 2011
83
Notes to the Financial Statements
For the year ended 31 December 2011
(iii)
Executive officers
The following persons also had authority and responsibility for planning, directing and controlling the activities of Institute during
the financial year:
Name
Centre/Division
Relevant Period
Mr Peter Harrison
Deputy Chief Executive Officer
01/01/2011 - 31/12/2011
Mr Grant Radford
Director, Corporate Services Division (CFAO)
01/01/2011 - 31/12/2011
Ms Christine Louey
Director, International Division
01/01/2011 - 31/12/2011
Mr David Thorsen
Director, Organisational Culture and Communications
Division
01/01/2011 - 31/12/2011
Mr Chris van der Weyden
Director, Technology and Learning Information
Services Division
01/01/2011 - 30/06/2011
Mr John Buckler
Director, Technology and Learning Information
Services Division
05/12/2011 - 31/12/2011
Ms Madelyn Lettieri
Director, Centre for Health, Community and Early
Childhood Education
01/01/2011 - 31/12/2011
Mr John McKay
Director, Centre for Integrated Engineering and
Science
01/01/2011 - 31/12/2011
Mr Andrew Kong
Director, Centre for Advanced Business Services
01/01/2011 - 31/12/2011
Mr Malcolm Macpherson
Director, Centre for Sustainable Technologies
01/01/2011 - 31/12/2011
Ms Leanne Jenkins
Director, Centre for Services and Arts Industries
01/01/2011 - 31/12/2011
Mr Nigel Hill
Director, Youth and Regional Partnerships
01/01/2011 - 29/04/2011
Ms Anne Consentino
Director, Centre for Vocational Pathways
01/01/2011 - 31/12/2011
Remuneration of Board Members
This includes remuneration received, or due and receivable from the Institute in connection with the Management of the Institute. This includes
termination payments and bonuses paid at the end of contracts.
2011
2010
$’000
$’000
292
331
2011
2010
$0
2
2
Less than $10,000
9
8
$10,000-$29,999
1
1
$100,000-$199,999
0
2
$240,000- $249,999
1
-
13
13
Note
Remuneration of Board members
Income Range
The number of Board members whose remuneration from the Institute was within the specified bands are as follows:
Total number of Board members
84
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
Executive Officers’ Remuneration
Note
2011
2010
$’000
$’000
Base remuneration of Executive Officers
1,753
1,679
Total Remuneration of Executive Officers
1,843
1,776
Income Range
The number of executive officers whose total remuneration exceeded $100,000 during the financial year are shown in their relevant
income bands. The base remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and
retirement benefits.
2011
2011
2010
2010
Base
Total
Base
Total
$140,000 - $149,999
4
-
8
4
$150,000 - $159,999
4
5
1
4
$160,000 - $169,999
1
3
1
1
$170,000 - $179,999
-
1
-
1
$180,000 - $189,999
1
1
-
-
$210,000 - $219,999
-
-
1
-
$220,000 - $229,999
-
-
-
1
$240,000 - $249,999
-
-
-
-
10
10
11
11
2011
2010
$’000
$’000
136
130
7
11
143
141
Total number of Executive Officers
Note
Executive Officers’ personnel compensation
Short-term employee benefits
Post-employment benefits
Other long-term benefits
Termination benefits
Share-based payments
Total key management personnel compensation
Annual Report 2011
85
Notes to the Financial Statements
For the year ended 31 December 2011
26. Related parties
(a)Key Management Personnel
Disclosures relating to Executives are set out in Note 24.
(b)
Other related party transactions
Note
Creditor - Caroline Chisholm Education Foundation (CCEF)
2011
2010
$’000
$’000
37
460
6
3
104
107
89
126
193
233
Related Party, CCEF Revenue
Administration charge
Related Party CCEF Expenditure
Donations
Resources provided free of charge
Total Related Party, CCEF expenditure
27. Institute details
The registered office of and principal place of business of the Institute is:
Chisholm Institute of TAFE
121 Stud Road
Dandenong VIC 3175
86
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
28. Financial Instruments
Financial risk management
(i)
Financial risk management objectives
The Institute’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash
flow interest rate risk and price risk), credit risk and liquidity risk. The Institute’s overall risk management program focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Institute
by adhering to principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative
financial instruments, and the investment of excess liquidity.
Compliance with policies and exposure limits is reviewed by management on a continuous basis. The Institute does not enter into or
trade financial instruments, including derivative financial instruments, for speculative purposes.
The Institute uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity
analysis in the case of interest rate and credit risk, ageing analysis for credit risk and data analysis in respect of investment
portfolios to determine market risk.
The Institute’s treasury function provides services to its business units, co-ordinates access to domestic and international financial
markets, monitors and manages the financial risks relating to the operations of the Institute through internal risk reports which
analyses exposures by degree and magnitude of risks. These risks include market (including currency risk and fair value interest rate
risk), credit risk and liquidity risk.
(ii)
Financial risk exposures and management
The Institute’s financial instruments consist mainly of deposits with banks, local money market instruments, short term
investments, accounts receivables and payables and leases.
The main risks the Institute is exposed to through its financial instruments are market risk, foreign currency risk, price risk, funding
risk, interest rate risk, credit risk and liquidity risk.
(iii)
Categorisation of financial instruments
Carrying amount of financial instruments by category:
Financial assets
Note
Cash and Deposits
5
Receivables
Floating rate notes
6, (a)
7
Category
Cash
Loans and
receivables
Other financial
assets
2011
$’000
2010
$’000
26,377
13,686
4,802
12,099
-
2,000
9,686
7,883
Financial liabilities
Creditors and accruals
12, 14
Financial liabilities
Annual Report 2011
87
Notes to the Financial Statements
For the year ended 31 December 2011
Net holding gain/(loss) on financial instruments by category:
Financial assets
Note
Cash and Deposits
5
Receivables
6, (a)
Floating rate notes
7
2011
$’000
2010
$’000
-
-
(13)
0
Other financial
assets
-
-
Financial liabilities
-
-
Category
Cash
Loans and
receivables
Financial liabilities
Creditors and accruals
(a)
12, 14
Receivables and payables disclosed here exclude statutory receivables and statutory payables.
Market risk
The Institute in its daily operations is exposed to a number of market risks. Market risks relate to the risk that market rates and
prices will change and that this will have an adverse affect on the operating result and /or net worth of the Institute.
The Board ensures that all market risk exposure is consistent with the Institute’s business strategy and within the risk tolerance of
the Institute. Regular risk reports are presented to the Board.
There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing market risk
or the methods used to measure this risk from the previous reporting period.
Foreign currency risk
The Institute does not have any foreign currency bank accounts denominated in foreign currency at 31 December 2011.
The amount of trade receivables denominated in foreign currency at 31 December 2011 is immaterial.
There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing foreign
currency risk or the methods used to measure this risk from the previous reporting period.
Price risk
The Institute is exposed to price risk in respect of changes to the market price of investments.
There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing price risk or
the methods used to measure this risk from the previous reporting period.
Interest rate risk
Interest rate risk arises from the potential for a change in interest rates to change the expected net interest earnings in the current
reporting period and in future years. Similarly, interest rate risk also arises from the potential for a change in interest rates to cause
a fluctuation in the fair value of the financial instruments.
The objective is to manage the rate risk to achieve stable and sustainable net interest earnings in the long term. This is managed
predominately through a mixture of short term and longer term investments with AA rated banking institutions.
88
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
Interest rate movements have not been sufficiently significant during the year to have an impact on the Institute’s year end result.
The Institute’s exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities, both
recognised and unrecognised at balance date are set out in the financial instrument compositions and maturity analysis table. Funding risk
Funding risk is the risk of over reliance on a funding source to the extent that a change in that funding source could impact on the
operating result for the current year and future years.
The Institute manages funding risk by continuing to diversify and increase funding from Commercial activities, both domestically
and off shore.
There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing funding risk
or the methods used to measure this risk from the previous reporting period.
Credit risk
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in a loss to the Institute.
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial
assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance sheet and notes to
the financial statements.
There is no material amounts of collateral held as security at 31 December 2011.
Credit risk is reviewed regularly by the Financial Services department. It arises from exposure to customers as well as through
certain deposits with financial institutions.
The Financial Services department monitors credit risk by actively assessing the rating quality and liquidity of counter parties and
the Institute seeks to mitigate credit risk by ensuring:
• Only banks and financial institutions with an ‘AAA’ rating are utilised
• All potential non student customers are rated for credit worthiness taking into account their size, market position and
financial standing; and
• Customers that do not meet the Institute’s credit policies may only purchase in cash or using recognised credit cards.
The Institute does not have any material credit risk exposure to any single receivable or group of receivables under financial
instruments entered into by the Institute.
The trade receivables balance at 31 December 2011 and 31 December 2010 do not include any counter parties with external
credit ratings.
Liquidity risk
Ultimate responsibility for liquidity risk management rests with the institute’s governing body, which has built an appropriate
liquidity risk management framework for the management of the short, medium and long-term funding and liquidity requirements.
The institute manages liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring forecast
and actual cash flows and matching the maturity profiles of financial assets and liabilities.
There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing liquidity risk
or the methods used to measure this risk from the previous reporting period.
Annual Report 2011
89
Notes to the Financial Statements
For the year ended 31 December 2011
(iv) Summarised sensitivity analysis
The following table summarises the sensitivity of the Institute’s financial assets and financial liabilities to interest rate risk and
credit risk:
Interest rate risk
31 December 2011
-0.50%
1.00%
Carrying
amount
$’000
Result
$’000
Equity
$’000
Result
$’000
Equity
$’000
26,377
(132)
(132)
264
264
(132)
(132)
264
264
Financial assets
Cash and deposits
Receivables1
Other financial assets
4,802
-
Financial liabilities
Payables1
9,686
Total increase/ (decrease)
Interest rate risk
-0.50%
1.00%
Carrying
amount
$’000
Result
$’000
Equity
$’000
Result
$’000
Equity
$’000
Cash and cash equivalents
13,686
(68)
(68)
171
171
Receivables1
12,099
(10)
(10)
25
25
(78)
(78)
196
196
(132)
(132)
264
264
31 December 2011
Financial assets
Other financial assets
2,000
Financial liabilities
Payables1
Total increase/ (decrease)
Total increase/ (decrease)
7,883
1 Receivables and payables disclosed here as financial instruments exclude statutory receivable and statutory payables.
90
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
(v) Financial instrument composition and interest rate exposure
The tables below reflect the undiscounted contractual settlement terms for financial instruments of a fixed period of maturity, as
well as management’s expectations of the settlement period for all other financial instruments. Additionally, the total amount of
financial assets disclosed excludes statutory receivables. Due to the aforementioned factors, the amounts below may not reconcile
to the balance sheet.
2011
Weighted
average
effective
rate
Fixed
interest
rate
$’000
Floating
Interest
Rate
$’000
1 to 6
months
$’000
6 to 12
months
$’000
Over 12
months
$’000
Noninterest
bearing
$’000
Total
carrying
amount
$’000
10
10
Financial assets
Cash and deposits
Cash on hand
Cash at bank
3.63%
2,652
2,652
Deposits at call
4.84%
23,715
23,715
Floating rate note
Receivables*
Trade debtors
1,847
1,847
Other debtors
2,955
2,955
4,811
31,179
(9,686)
(9,686)
(9,686)
(9,686)
Other financial assets
Floating rate notes
Total financial assets
26,367
Financial liabilities
Trade and other
payables
Creditors and accruals
Total financial liabilities
Annual Report 2011
91
Notes to the Financial Statements
For the year ended 31 December 2011
2010
Weighted
average
effective
rate
Fixed
interest
rate
$’000
Floating
Interest
Rate
$’000
1 to 6
months
$’000
6 to 12
months
$’000
Over 12
months
$’000
Noninterest
bearing
$’000
Total
carrying
amount
$’000
Financial assets
Cash and cash
equivalents
Cash on hand
Cash at bank
4.13%
2,385
2,385
Deposits at call
4.94%
8,301
8,301
Floating rate note
5.22%
3,000
10
3,000
10
3,000
Receivables*
Trade debtors
1,881
1,881
Other debtors
10,218
10,218
Other financial assets
Floating rate notes
Total financial assets
5.32%
2,000
15,686
2,000
3,000
2,000
2,000
12,109
27,795
(7,883)
(7,883)
(7,883)
(7,883)
Financial liabilities
Trade and other
payables
Creditors and accruals
Total financial
liabilities
92
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
(vi) Ageing analysis of financial assets
There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and
they are stated at the carrying amounts as indicated. The following table discloses the contractual maturity analysis for the
Institute’s financial assets and financial liabilities.
Maturity dates
Carrying
amount
$’000
Not past
due
and not
impaired
$’000
1‑3
3 months
Month
$’000 s
1 year
$’000
1‑5 years
$’000
Impaired
financial
assets
$’000
Trade receivables
1,834
761
890
130
53
13
Other receivables
2,968
2,968
Total financial assets
4,802
3,729
890
130
53
13
Trade and other payables
9,686
9,686
Total financial liabilities
9,686
9,686
0
0
0
0
Trade receivables
1,793
1,076
466
188
63
44
Other receivables
10,306
10,306
12,099
11,382
Trade and other payables
7,883
7,883
Total financial liabilities
7,883
7,883
2011 financial assets
Receivables:
2011 financial liabilities
Payables:
2010 financial assets
Receivables:
Total financial assets
323
466
188
63
367
0
0
0
0
2010 financial liabilities
Payables:
Fair Value
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure
purposes. Due to the short-term nature of the current receivables and payables, their carrying value is assumed to approximate
their fair value. Based on credit history it is expected that the receivables that are neither past due nor impaired will be received
when due.
For other assets and other liabilities the fair value approximates their carrying value. Financial assets where the carrying amount
exceeds fair value have not been written down as the Institute intends to hold these assets to maturity.
Annual Report 2011
93
Notes to the Financial Statements
For the year ended 31 December 2011
Total carrying amount as per the
balance sheet
Net fair value
Financial Assets
2011
$’000
2010
$’000
2011
$’000
2010
$’000
Cash at bank and on hand
2,662
2,395
2,662
2,395
23,715
8,301
23,715
8,301
Receivables- debtors
1,834
1,793
1,834
1,793
Receivables- other debtors
2,968
10,306
2,968
10,306
Deposits at call
Floating rate notes
Total financial assets
5,000
5,000
31,178
27,795
31,178
27,795
Creditors and accruals
9,686
7,883
9,686
7,883
Total financial liabilities
9,686
7,883
9,686
7,883
Financial Liabilities
The following tables provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value,
grouped into Levels 1 to 3 based on the degree to which the fair value is observable.
• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or
liabilities
• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability
that are not based on observable market data (unobservable inputs).
Fair value measurements recognised in the balance sheet are categorised into the following levels:
Level 1 Quoted Prices
2011
$’000
2010
$’000
-
5,000
0
5,000
Financial Assets
Floating rate notes
Total financial assets
94
Chisholm Institute
Annual Report 2011
95
96
Chisholm Institute
DECLARATION BY PRESIDENT OF THE BOARD,
CHIEF EXECUTIVE OFFICER AND CHIEF FINANCE
AND ACCOUNTING OFFICER
In our opinion, the accompanying Statement of Performance of Chisholm Institute of TAFE
in respect of the 2011 financial year is presented fairly in accordance with the Financial
Management Act 1994.
The Statement outlines the performance indicators as determined by the responsible
Minister, pre-determined targets and the actual results for the year against these indicators,
and an explanation of any significant variance between the actual results and performance
targets.
As at the date of signing, we are not aware of any circumstance which would render any
particulars in the Statement to be misleading or inaccurate.
David Willersdorf
Maria Peters
Grant Radford
President of the Board
Chief Executive Officer
Chief Finance and Accounting
29 February 2012
29 February 2012
29 February 2012
Place: Dandenong
Place: Dandenong
Place: Dandenong
Annual Report 2011
97
Performance Statements
For the year ended 31 December 2011
Key Performance Indicator
Definition
2011
2010
Actual
Target
Actual
Result
Participation of
15-24 year olds
Number of students within
the age group
19,265
20,439
20,439
Not achieved
(a)
Participation of
25-64 year olds
Number of students within
the age group
21,161
22,830
22,830
Not achieved
(a)
Module load completion
Rate scheduled hours
assessed as passed or
satisfactorily completed/total
scheduled hours reported
less hours recorded with
credit transfer and continuing
studies outcomes
83.96%
75.62%
75.62%
Achieved
Student satisfaction
Student satisfaction
71.60%
-
75.30%
(b)
$11.04
10.39
$10.72
Not achieved
(d)
2.26
1.75
2.39
Achieved
5.74%
2.80%
4.35%
Achieved
25,029,913
25,450,000
$120,078
$107,591
$109,134
11,194,353
11,799,229
11,799,229
Not achieved
(d)
4%
(15%)
(14%)
Not achieved
(e)
Total funded expenditure
Total cost per student contact
(excluding depreciation)/total
hour (SCH)
SCH
Working capital ratio
Current assets/current
liabilities (adjusted for noncurrent employee benefit
liabilities)
Net operating margin
Funded operating surplus/
total revenue (excl capital and
exp from capital)
Fee for service revenue
Fee for service revenue
Revenue per EFT staff
Total revenue (excl. capital)/
average EFT staff
Student contact hours (SCH)
Energy consumption
98
2011
Chisholm Institute
Percentage reduction in
energy consumption. (2010
cons. - 2007 cons.)/2007
consumption
28,638,389 Not achieved (c)
Performance Statements – notes
For the year ended 31 December 2011
(a) T
he 2011 age related participation target are based on prior year results. Whilst age participation is still being monitored by the
Victorian Government, they were not included in the 2011 Partnership and Service Agreements between the Victorian Skills
Commission and the Institute. Age related participation targets have been superseded by Youth Compact targets which were
the Institute’s focus in 2011. In succeeding years the Institute has improved the engagement of Victorian training guarantee
students
(b) S
tudent satisfaction is one of the national quality indicators; it is a new KPI and uses a new survey tool. No comparative data
was available between the years or with other training providers to enable the Institute to set an informed performance target
for 2011
(c) The Institute’s fee for service actual performance was slightly below the target. The Institute’s 2011 fee for service target was
lower than the 2010 fee for service actual in recognition of declining International Student revenue; however 2011 International
Student revenue exceeded the reduced target. Below target domestic fee for service revenue was the cause of the Institute not
achieving this target
(d) T
he decrease in student contact hours largely reflects the downturn in International Onshore activity as a result of the global
financial crisis and changes to government policy
(e) T
he guidelines require details of energy consumption using 1999 as a base year. This information is not available for the former
Chisholm Institute. Chisholm’s 15% reduction in energy consumption is an internally set target based on 2007 as the base year.
The Institute has not achieved this target as a result of a 13% increase in square meters; 21% increase in student contract
hours; increase in operating hours to cope with additional evening and weekend activity; and the full operation of new building
stock. Refer the Environmental Sustainability report in Chisholm’s 2011 Annual Report for additional detail.
Annual Report 2011
99
Caroline Chisholm
Caroline Chisholm Education
Education
Foundation
Foundation
FinancialReport
Report
Financial
100
Chisholm Institute
Caroline Chisholm Education Foundation
“I promise
to know neither
country nor creed,
but to serve all
justly and
impartially”
Caroline Chisholm
Picture courtesy National Library of Australia
The Caroline Chisholm
On her arrival in the new
Education Foundation
Australian colony in 1838,
is a further example of
Caroline Chisholm was
Chisholm’s commitment to
compelled to help change the
social responsibility. The
appalling conditions of poor,
Caroline Chisholm Education
vulnerable migrants. Chisholm
Foundation is an independent
Institute of TAFE proudly bears
charitable trust established
the name of this true pioneer.
by Chisholm Institute of TAFE
Her sentiment echoes the role
to provide education grants
of the VET sector and of those
to disadvantaged members of
committed staff who work in
our community. The formation
the region served by Chisholm.
of the Caroline Chisholm
Education Foundation was
inspired by the activism, energy
and ‘can do’ approach of this
remarkable woman.
The Foundation strives to
continue Caroline Chisholm’s
legacy of social justice
by providing support to
disadvantaged students and
members of the Chisholm
Institute community.
Management of the
Caroline Chisholm Education Foundation
The Caroline Chisholm Education Foundation operates
under a Trust Deed approved by the Board of Chisholm
Institute of TAFE. The Trustees were appointed by the
Board. The Trustees during 2011 were:
Ms Meg Collins-Hughes, (Chairperson)
Mr Grant Radford
Mr Alan Burns
Ms Virginia Simmons
Mr Fred Hamilton
Mr Roy Smalley
Mrs Maria Peters
Ms Mandy Splatt
Ms Christine Powell/ Ms Kate Oxenbould
Mr Charles Wilkins
Mr David Willersdorf
Annual Report 2011
101
Caroline Chisholm Education Foundation
Building Foundation Funds
• During 2011 the total net revenue of the Foundation was
$129,355
• Chisholm Institute of TAFE continued to contribute five
Since 2008 Chisholm Institute staff members have volunteered
to be ‘Ambassadors’ taking on a mentoring role with scholarship
and bursary holders. At the Ambassador Network Dinner held on
per cent of its investment interest income to the Caroline
10 November 2010, Trustees heard more about grant holders
Chisholm Education Foundation in 2011. This contribution
from Ambassadors and concurred that the experience for them
totalled $49,104
was extremely uplifting. With the substantial increase in grant
• Donations to the Caroline Chisholm Education Foundation
to fund 2011/2012 grants came from individuals,
recipients the Foundation will seek more Ambassadors annually.
businesses, Rotary Clubs, Chisholm Institute staff and
Fundraisers
students
A number of fundraising events were held throughout the year.
• The aim of the Foundation is to raise $100,000 plus a year
and over time build to a funding base of $1,000,000
• Chisholm Institute of TAFE administers the fund at no cost
to the Caroline Chisholm Education Foundation
• A Board of Trustees chaired by an independent chair and
comprised of representatives from the broader Chisholm
community and Chisholm Institute of TAFE Board and staff
members is responsible for the governance of the Caroline
Chisholm Education Foundation.
They included the International Women’s Day Lunch, Annual
Charity Golf Day, Christmas in July Dinner and Degustation Dinner
sponsored by Montalto Restaurant. Caroline Chisholm Education
Foundation Christmas Cards were once again sold to provide
funding towards a Christmas Scholarship. Reserved parking spaces
at the Frankston, Dandenong and Berwick campuses were raffled
at the end of 2011 and with proceeds from the Chisholm Institute
Christmas Party raffle, funded the Chisholm Staff Scholarship.
2011 Caroline Chisholm Education
Foundation Grants
Distribution of Foundation Grants
Students receive funding for tuition, amenities and materials fees
Grants are available to assist individuals and groups where social or
for programs undertaken as well as study support items such
financial circumstances are impeding engagement in education and
as computers and printers, travel and child care where deemed
training. These include:
appropriate.
• Scholarships and bursaries
• Projects and initiatives
• Scholarships for full fee paying university for Chisholm
Institute of TAFE graduates.
Access to funding is subject to eligibility according to the
Foundation’s Grant Disbursement Principles and particular grant
guidelines.
102
Ambassador Scheme
Chisholm Institute
2011 Grants
In 2011 there were 198 grants, amounting to $165,192 in funding, awarded to students requiring assistance to pay for fees across a
broad range of categories and with varying criteria. Grants ranged from $500 to $2,500 and were awarded to students undertaking ESL,
pre-apprenticeships and apprenticeships, certificates, diplomas, advanced diplomas and projects such as the CREW@Chisholm program
incorporating Certificate II in General Education for Adults and the Certificate II in Automotive Studies. Grants were:
African Scholarship
Grocon & VicUrban Scholarship
African Community Scholarship (Rotary Club
Hospitality Scholarship
of North Melbourne)
HQRA Scholarship
Automotive Scholarship
Ian Tatterson Scholarship
Avaxa Scholarship
Information Technology Scholarship
Bass Coast Travel Scholarship
International Women’s Day Scholarship
Berwick TEC Bursary
KCG Scholarship, PCEA Scholarship and
Box Stallion Scholarship
DVCEA Scholarship
Building/Construction Scholarship
Killen Scholarship
Business Studies Scholarship
Leon Riley Scholarship (Rotary Club of Sorrento)
Business Writing Scholarship
Montalto Scholarship
CAD Scholarship
Patisserie Scholarship
Children’s Services Scholarship
Peter Wylie Memorial Scholarship
Chisholm Board of Directors’ Scholarship
(Rotary Club of Ferntree Gully)
Chisholm Staff Scholarship
Porsche Club Scholarship
Christmas Scholarship
Retail Scholarship
City of Greater Dandenong Scholarship
Regional Scholarship
Commercial Cookery Scholarship
Roden Scholarship
Community Health Scholarship
Rotary Berwick Scholarship
Community Health Services Scholarship
Rotary Club of Chelsea Scholarship
Consolidated Insurance Agencies Scholarship
Rotary Club of Endeavour Hills
Construction/Plumbing Scholarship
Rotary Club of Frankston Scholarship
Crew Scholarship
Rotary Club of Keilor Scholarship
Customer Service/Logistics Scholarship
Rotary Club of Rosebud Scholarship
Dandenong Campus Network Scholarship
Sandra George Manufacturing Industry Award
Dandenong Tax Office Staff Scholarship
Emerson Scholarship
Engineering/ Manufacturing Scholarship
Engineering/ Welding Scholarship
FGB Natural Products Scholarship
Fuji Xerox Scholarship
Garry Rogers Motorsport Scholarship
(Perpetual)
Sorrento Sea Baths Scholarship
Sue Polgar Memorial Scholarship
Tigertune Scholarship
Trade Scholarship
Virginia Simmons Perpetual Scholarship
Yellow Pages Scholarship
Grenda Scholarship
Annual Report 2011
103
104
Chisholm Institute
Annual Report 2011
105
DECLARATION BY PRESIDENT OF THE CHISHOLM
INSTITUTE OF TAFE BOARD, CHAIRPERSON AND
CHIEF FINANCE AND ACCOUNTING OFFICER
We certify that the attached financial statement for Caroline Chisholm Education Foundation
(CCEF) has been prepared in accordance with Standing Direction 4.2 of the Financial
Management Act 1994, applicable Financial Reporting Directions issued under that
legislation, Australian Accounting Standards and other mandatory professional reporting
requirements.
We further state that, in our opinion, the information set out in the comprehensive operating
statement, balance sheet, statement of changes in equity, cash flow statement and notes to
and forming part of the financial statement, presents fairly the financial transactions during
the year ended 31 December 2011 and financial position of the Foundation as at
31 December 2011.
At the date of signing this financial statement, we are not aware of any circumstance
that would render any particulars included in the financial statement to be misleading or
inaccurate. There are reasonable grounds to believe that the Foundation will be able to pay
its debts as and when they became due and payable.
The Authorised Trustees sign this declaration as delegates of, and in accordance with a
resolution of, the Trustees of Caroline Chisholm Education Foundation.
106
David Willersdorf
Virginia Simmons
Grant Radford
President of the Institute Board
Chairperson
Chief Finance and Accounting Officer
Chisholm Institute of TAFE
Caroline Chisholm Education Foundation
Chisholm Institute of TAFE
29 February 2012
29 February 2012
29 February 2012
Place: Dandenong
Place: Dandenong
Place: Dandenong
Chisholm Institute
Comprehensive Operating Statement
For the year ended 31 December 2011
2011
2010
$’000
$’000
Donations received from Chisholm Institute of TAFE
103,832
107,058
Donations received from other sources
193,722
59,269
Note
Continuing operations
Income from transactions
Interest Revenue
19,086
5,646
Resources received free of charge
88,239
126,479
404,879
298,452
77,410
99,487
165,192
59,146
6,309
3,439
3,100
3,000
5,038
-
13,672
14,273
172
1,802
4,631
7,417
Total expenses from transactions
275,524
189,064
Net result from transactions
129,355
109,388
Comprehensive result
129,355
109,388
Total income from transactions
Expenses from transactions
Employee benefits
Scholarships
Administration charge
Audit fees
Consumables
4
Fees and charges
Promotional expenses
Travel and motor vehicle charges
Other expenses
500
The above comprehensive operating statement should be read in conjunction with
the accompanying notes.
Annual Report 2011
107
Balance Sheet
As at 31 December 2011
2011
2010
$’000
$’000
678,647
126,134
36,849
460,007
Total financial assets
715,496
586,141
Total Assets
715,496
586,141
Net assets
715,496
586,141
715,496
586,141
715,496
586,141
2011
2010
$’000
$’000
Accumulated surplus/(deficit) at the beginning of the year
586,141
476,753
Comprehensive result for the year
129,355
109,388
Accumulated surplus/(deficit) at the end of the year
715,496
586,141
Total equity at the end of the year
715,496
586,141
Note
Assets
Financial assets
Cash and cash equivalents
Receivables
Equity
Accumulated surplus/(deficit)
Total equity
Commitments
3
Contingencies
5
The above balance sheet should be read in conjunction with the accompanying notes.
Statement of Changes in Equity
For the year ended 31 December 2011
Note
Accumulated surplus/(deficit)
Adjustment due to changes in accounting policy
The above statement of changes in equity should be read in conjunction with the
accompanying notes
108
Chisholm Institute
Cash Flow Statement
For the year ended 31 December 2011
Note
2011
2010
$’000
$’000
297,553
-
19,086
5,646
Cash flows from operating activities
Receipts
Donations
Interest received
Other income – (Chisholm receivable)
423,158
Total Receipts
739,797
5,646
165,192
-
Expenditure
Scholarships paid
Other Expenses paid
22,092
Total Expenditure
187,284
-
552,513
5,646
552,513
5,646
Cash and cash equivalents at the beginning of the financial year
126,134
120,488
Cash and cash equivalents at the end of the financial year
678,647
126,134
Net cash provided by/ (used in) operating activities
Net increase/(decrease) in cash and cash equivalents
2
The above cash flow statement should be read in conjunction with the accompanying notes.
Annual Report 2011
109
Notes to the Financial Statements
For the year ended 31 December 2011
1.Statement of significant accounting policies
The financial statement is a general purpose financial statement which has been prepared on an accrual basis in accordance with
the Financial Management Act 1994, applicable Australian Accounting standards and Interpretations (AASs) and other mandatory
professional requirements. AASs include Australian equivalents to International Financial Reporting Standards.
1.01 Basis of preparation
The following is a summary of the material accounting policies adopted by the Caroline Chisholm Education Foundation (CCEF)
in the preparation of the financial statement. The accounting policies have been consistently applied unless otherwise stated.
Reporting basis and conventions
The financial statement has been prepared on a historical cost basis.
1.02Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and cash at bank. For the purpose of the cash flow statement, cash and cash
equivalents consist of cash and cash equivalents as defined above, net of bank overdrafts. Bank overdrafts are included in interest
bearing liabilities in the Balance Sheet.
1.03Receivables
Receivables consist entirely of amounts held by Chisholm Institute of TAFE on behalf of the CCEF. Receivables are recognised
initially at fair value and subsequently measured at amortised cost using the effective rate of interest method, less any
accumulated impairment.
1.04 Revenue recognition
Donations received from Chisholm Institute of TAFE
Donations received from Chisholm Institute of TAFE are recognised as revenue in the period when CCEF gains control of the
donation. Control is recognised upon receipt. In accordance with the Operating Agreement between CCEF and Chisholm Institute of
TAFE, 5% of interest earned by Chisholm Institute of TAFE is donated to the CCEF. Chisholm Institute of TAFE also donates income
earned from fundraising activities it holds on behalf of the CCEF.
Donations received from other sources
Donations received from other sources are recognised as revenue in the period when the CCEF gains control of the donation.
Control is recognised upon receipt of the donation. Donations received from other sources include donations from industry,
the community and Chisholm Institute of TAFE staff.
Resources received free of charge
Resources received free of charge are recognised as revenue when the Foundation gains control of them. The benefits derived from
these resources are recorded at their fair value in the financial statements. In accordance with Operating Agreement between CCEF
and Chisholm Institute of TAFE, Chisholm Institute of TAFE is responsible for all operating expenses of the CCEF.
Interest Revenue
Interest revenue from cash, short term deposits and investments is brought to account on a time proportional basis taking into
account interest rates applicable to the relevant financial assets.
110
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
1.05Expenses
Employee Benefits
Employee benefit expenses are recognised when incurred.
Scholarships
Scholarships are recognised as an expense when they are incurred.
Administration charge
The administration charge is recognised as an expense in the period when the amount becomes payable to Chisholm Institute of
TAFE. In accordance with Operating Agreement between CCEF and Chisholm Institute of TAFE, 2 per cent of Donation income is
payable to Chisholm Institute of TAFE for administration of the CCEF accounts.
1.06Commitments
Commitments include scholarships awarded to students for future years. Commitments are disclosed at their nominal values.
1.07Contingent assets and liabilities
Contingent assets and liabilities are not recognised in the balance sheet, but are disclosed by way of a note and, if quantifiable,
are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable.
Annual Report 2011
111
Notes to the Financial Statements
For the year ended 31 December 2011
Note
2011
2010
$’000
$’000
129,355
109,388
423,158
(103,742)
552,513
5,646
17,717
26,411
2. Cash flow information
Reconciliation of operating result to cash flows from operating activities
Net operating result for the year
Change in operating assets and liabilities
Decrease/ (increase) in receivables
Net cash flows from operating activities
3.Commitments
Scholarship
Outstanding Scholarships are payable as follows:
Payment due
Not later than one year
Later than one year and not later than five years
4.
8,000
17,717
34,411
3,100
3,000
Auditor’ Remuneration
In accordance with Operating Agreement between CCEF and Chisholm Institute of
TAFE, Chisholm Institute of TAFE is responsible for Audit expenses.
Victorian Auditor-General’s Office
Audit of the financial statement
5.Contingencies
At balance date, the Foundation had no contingent assets or contingent liabilities
(2010: Nil).
112
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
6.
Key management personnel disclosures
In accordance with the directions of the Minister for Finance under the Financial Management Act 1994, the following disclosures
are made for the responsible Ministers and responsible Members of Council.
(i) Minister
The relevant Minister is The Hon Peter Hall MP, Minister for Higher Education and Skills. Remuneration of the Ministers is disclosed in
the financial statement of the Department of Premier and Cabinet. Other relevant interests are declared in the Register of Members
interests which is completed by each member of the Parliament.
(ii) Trustees of the Caroline Chisholm Education Foundation
The following persons were responsible persons and trustees of the Foundation during the year:
Name
Category of Appointment
Relevant Period
Ms Virginia Simmons
Trustee
01/01/2011 - 31/12/2011
Ms Virginia Simmons
Chairperson
16/11/2011 - 31/12/2011*
Ms Meg Collins-Hughes
Chairperson
01/01/2011 - 19/08/2011*
Ms Meg Collins-Hughes
Trustee
20/08/2011 - 31/12/2011
Mr Alan Burns
Trustee
01/01/2011 - 01/11/2011
Ms Kate Oxenbould
Trustee
01/05/2011 - 31/12/2011
Ms Christine Powell
Trustee
01/01/2011 - 01/05/2011
Mr Fred Hamilton
Trustee
01/01/2011 - 31/12/2011
Mr Grant Radford
Trustee
01/01/2011 - 31/12/2011
Mrs Maria Peters
Trustee
01/01/2011 - 31/12/2011
Mr Roy Smalley
Trustee
01/01/2011 - 31/12/2011
Ms Mandy Splatt
Trustee
01/01/2011 - 31/12/2011
Mr David Willersdorf
Trustee
01/01/2011 - 31/12/2011
Mr Charles Wilkins
Trustee
01/01/2011 - 31/12/2011
* Ms Meg Collins-Hughes resigned as chairperson in the August CCEF trustee meeting.
Ms Virginia Simmons was acting Chairperson until approved as the Chairperson by the Chisholm Board of Directors in November 2011.
Annual Report 2011
113
Notes to the Financial Statements
For the year ended 31 December 2011
Note
7. 2011
2010
$’000
$’000
36,349
460,007
36,349
460,007
103,832
107,058
88,239
126,479
192,071
233,537
Related parties
Debtor – Chisholm Institute
Intercompany revenue
Donations
Resources provided free of charge
Intercompany expenditure
Administration charge
8.
6,308
3,439
6,308
3,439
Financial Instruments
Terms, conditions and accounting policies
CCEF’s accounting policies, including the terms and conditions of each class of financial asset, financial liability and equity
instrument, both recognised and unrecognised at reporting date, are as follows:
Recognised financial instruments
Note
Accounting policies
Terms and conditions
Cash and cash equivalents – Deposits at call
1.02
Deposits at call are carried at their
nominal amounts. Interest revenue
is recognised in the operating
statement when it
is earned
Deposits at call have an effective
interest rate of 4.9%
Receivables
– Related party receivable
1.03
Related party receivable is carried
at the nominal amount
Financial assets
114
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
(a)
Financial instrument compositions and maturity analysis
The tables below reflect the undiscounted contractual settlement terms for financial instruments of a fixed period of maturity,
as well as management’s expectations of the settlement period for all other financial instruments. Additionally, the total amount
of financial assets disclosed excludes statutory receivables. Due to the aforementioned factors, the amounts below may not
reconcile to the balance sheet.
2011
Weighted average
effective rate
Floating interest
rate
$
4.9%
678,647
Non- interest
bearing
$
Total carrying
amount
$
Financial assets
Cash and cash
Deposits at call
678,647
Receivables
Related party receivable
36,349
36,349
678,647
36,349
714,996
Weighted average
effective rate
Floating interest
rate
$
Non- interest
bearing
$
Total carrying
amount
$
4.75%
126,134
Total financial assets
2010
Financial assets
Cash and cash equivalents
Deposits at call
126,134
Receivables
Related party receivable
Total financial assets
126,134
460,007
460,007
460,077
586,141
Annual Report 2011
115
Notes to the Financial Statements
For the year ended 31 December 2011
(b)
Sensitivity analysis
The following table summarises the sensitivity of the Foundation’s financial assets and financial liabilities to interest rate risk:
Interest rate risk
31 December 2011
Carrying
amount
$
-0.50%
Result
$
+1.00%
Equity
$
Result
$
Equity
$
Financial assets
Cash and cash equivalents
678,647
(3,393)
(3,393)
6,786
6,786
Total increase/(decrease)
Interest rate risk
31 December 2010
-0.50%
+1.00%
Carrying
amount
$
Result
$
Equity
$
Result
$
Equity
$
126,134
(631)
(631)
1,261
1,261
126,134
(631)
(631)
1,261
1,261
Financial assets
Cash and cash equivalents
Total increase/(decrease)
Fair Value
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for
disclosure purposes.
Due to the short-term nature of the receivables their carrying value is assumed to approximate their fair value. Receivables are
neither past due nor impaired will be received when due.
Financial risk management
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement
and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity
instrument is disclosed in note 1 of the financial statements
(i)
Financial risk management objectives
The Foundation’s activities only expose it to interest rate risk. The Foundation relies on Chisholm’s treasury function to monitor
interest rates and minimise potential adverse effect on the financial performance of the CCEF by adhering to the Institute’s
Investment Strategy parameters.
116
Chisholm Institute
Notes to the Financial Statements
For the year ended 31 December 2011
(ii)
Financial risk exposures and management
The Foundation’s financial instruments consist of deposits at call and a related party receivable. The main risk to the Foundation is
exposed to through its financial instruments is interest rate risk.
Interest rate risk
Interest rate risk arises from the potential for a change in interest rates to change the expected net interest earnings in the current
reporting period and in future years. Similarly, interest rate risk also arises from the potential for a change in interest rates to cause
a fluctuation in the fair value of the financial instruments.
The objective is to manage the rate risk to achieve stable and sustainable net interest earnings in the long term. This is managed
predominately through a mixture of short term and longer term investments with AA rated banking institutions.
The Foundation’s exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities, both
recognised and unrecognised at balance date are set out in the financial instrument compositions and maturity analysis table.
Credit risk
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in a loss to the Institute.
There is no credit risk to the related party receivable.
Annual Report 2011
117
Compulsory non academic student fees income
and expenditure statement for the year
ended 31 December 2011
Chisholm Institute of TAFE imposes a compulsory non-academic fee known as the “Student Services and Amenities Fee” for the purposes
of providing additional student services and amenities. The 2001 fee was calculated on the basis of 21cents per enrolled student
contact hour in Government funded accredited courses with a maximum fee of $82 and a minimum fee of $26. Certain concessions and
exemptions apply. The collection and expenditure of the fees is subject to the provisions of the Ministerial Directions on Fees and Charges
and Division 3 of the Tertiary Education Act 1993.
2011
2010
$
$
Student Service and Amenities Fees annual revenue
713,389
783,221
Ancillary Trading and Other
103,019
44,405
816,408
827,626
142,278
-
Recreational Services
72,972
88,259
Induction & Transition
26,712
56,346
377,950
377,996
17,762
59,042
328
4,138
-
9,212
Leadership & Skills Program
4,039
2,854
Internal Subsidies
2,465
91,183
23,818
-
668,324
689,030
Fund (Deficit)/Surplus for Year
148,084
138,596
Fund Surplus from Previous Year
140,486
1,890
Fund Surplus at 31 December
288,570
140,486
Income
Total Income
Less Expenditure
Amenities & Facilities
Unit Operations (including salaries)
Liaison Services
Student Representation Support
Clubs and Collectives
Ancillary Trading and Other
Certification
I certify that the information contained in this statement is in
I further certify that this statement is prepared on the same
accordance with the accounting records of Chisholm Institute of
basis as the audited Financial Report for Chisholm Institute of
TAFE and that expenditure of funds is in accordance with the
TAFE for the year ended 31 December 2011.
Ministerial Directions on Fees and Charges and Division 3 of the
Tertiary Education Act 1993.
Grant Radford
Chief Finance and Accounting Officer
Chisholm Institute of TAFE
29 February 2012
118
Chisholm Institute
Activity table
The Activity Table is provided for National Financial Reporting purposes. The information provided in this statement is reporting
on the same basis as the financial information reported in the audited Financial Report for Chisholm Institute of TAFE for the
year ended 31 December 2011.
2011
2010
$’000
$’000
Delivery Provision and Support Activity
80,315
84,069
Administration and General Services Activity
21,905
20,875
Property, Plant and Equipment Services Activity
19,458
19,711
8,186
7,638
129,864
132,293
62,778
65,081
Superannuation
5,468
5,712
Payroll Tax
3,317
3,427
STATEMENT 1 – OPERATING EXPENSES
Total Operating Expenses
Student and Other Services Activity
Total Operating Expenses
STATEMENT 2 – DELIVERY PROVISION AND SUPPORT ACTIVITY
Delivery Provision and Support Activity
Salaries, Wages, Overtime and Allowances
Other Salary Related Costs
686
600
4,448
5,139
422
422
Depreciation
2,111
1,948
Other Direct Delivery Expenses
1,084
1,740
80,314
84,069
10,595
8,011
Superannuation
394
610
Payroll Tax
321
332
81
64
203
277
Communication Expenses
1,227
1,378
Fees
3,770
5,177
Travel and Motor Vehicle Expenses
2,098
1,603
406
375
Consumables
Travel and Motor Vehicle Expenses
Delivery Provision and Support Activity
STATEMENT 3 – ADMINSTRATION AND GENERAL SERVICES ACTIVITY
Administration and General Services Activity
Salaries, Wages, Overtime and Allowances
Other Salary Related Costs
Consumables
Depreciation
Other Expenses
Administration and General Services Activity
2,810
3,048
21,905
20,875
Annual Report 2011
119
Activity table
2011
2010
$’000
$’000
1,191
1,333
113
125
Payroll Tax
69
76
Other Salary Related Costs
11
13
Consumables
115
108
Depreciation
3,826
3,531
Equipment
2,569
3,158
Energy Costs
1,590
1,571
Contract Services
5,555
5,331
Rent/leasing Charges
1,229
1,252
Repair and Maintenance
3,111
3,182
Loss on sale of non current assets
59
11
Other Expenses
20
94
19,458
19,711
STATEMENT 4 – PROPERTY, PLANT AND EQUIPMENT SERVICES ACTIVITY
Property, Plant and Equipment Services Activity
Salaries, Wages, Overtime and Allowances
Superannuation
Property, Plant and Equipment Services Activity
STATEMENT 5 – STUDENT AND OTHER SERVICES ACTIVITY
Student and Other Services Activity
Salaries, Wages, Overtime and Allowances
5,891
5,248
Superannuation
487
435
Payroll Tax
332
292
46
54
Consumables
364
331
Depreciation
13
12
Other Expenses
1,053
1,266
Student and Other Services Activity
8,186
7,638
Other Salary Related Costs
120
Chisholm Institute
2011 Financial Performance against the 2011 Budget
The Board approves an Annual Budget consistent with financial obligations stated in its governance approaches, the Constitution, the
Education and Training Act and other statutory directions.
The 2011 Budget was originally approved by the Board on 1 December 2010. A revision to the Budget was approved on 27 July 2011.
Chisholm’s performances against the financial targets specified in the 2011 Revised Budget are summarised as follows:
Note
2011
Actual
$’000
2011
Revised
Budget
$’000
Variance
$’000
Operating Income
1
128,699
124,546
4,513
Operating Expenses
2
(121,247)
(121,115)
(132)
7,452
3,431
4,021
(1,050)
1,747
2,797
6,402
5,178
1,224
18,080
12,580
4,545
Operating Surplus
Capital Operations
3
Net Surplus
Working Capital Balance
4
Notes
1. O
perating Income was higher than budget due to increased contestable delivery which resulted in higher than anticipated
Contestable funding.
2. T
he increase in Operating Expenses largely results from the marginal increase in salary expenses associated with increased
contestable delivery.
3. C
apital Operations includes Government Contributions – Capital, Depreciation, and Expenditures from Capital Contributions.
4. Working Capital is equal to Current Assets less Current Liabilities (excluding Long Term Employee Provisions).
Annual Report 2011
121
Chisholm 2011 – 2014 Targets
122
Chisholm 2014 Targets
2011 Progress Report
Maintain a 5% surplus, exclusive of reinvestment
The Institute achieved a $7.452M surplus, higher than the 5% target of $6.4M. The turnover was
$128.7M.
All tertiary programs have
formal pathways
(100%)
For this KPI, tertiary programs are defined as Diploma and Advanced Diploma. At the end of 2011,
70.4% of courses had formal pathways to higher levels. For some courses, e.g. OH&S, there are no
easily identified equivalents in higher education and for others, e.g. Engineering, formal articulation
is difficult to negotiate because of specialist subjects.
30% increase in staff rating Chisholm
as an excellent place to work
(8.7%)
In 2010, 14.6% of staff rated Chisholm as excellent in the staff satisfaction survey, up from 6.7%
in 2006, and well ahead of the 2014 target. The next Chisholm staff survey is in the second half of
2012.
32% reduction in environment
sustainability index
(11,410 tonne)
In 2011, Chisholm’s environmental sustainability index reduction target was 15% and the actual
performance achieved was a reduction of 13%. This included total net emissions of 15,484 CO2-et.
37% of learners undertake
a subsequent course
(11,880 learners)
In 2010, 32% of learners undertook a subsequent course, a small increase on the previous year. For
2011, 37% of students undertook more than one course, thereby meeting the 2014 performance
target.
Increase in training resulting in
10% growth
(7.75 M SCH, government
funds in 2011)
The final report for the year showed a 2.8% increase over the 2010 result at 7.24 M SCH.
The Institute did not meet the growth target of 7.75 M SCH in 2011. A target of 10% has
also been set for 2012.
Chisholm Institute
Disclosures Index and Additional
Compliance Reports
Introduction
The Annual Report is the principal medium through which Chisholm
Institute of TAFE discharges its accountability to the Parliament,
Government and the people of Victoria. This index is provided to assist
readers of the 2011 Annual Report to identify how Chisholm
has met reporting obligations specified in:
• Financial Management Act 1994 (FMA)
• Financial Reporting Directions (FRD)
• Standing Directions (SD) of the Minister for Finance issued
under the Financial Management Act 1994
• Australian Accounting Standards (AAS)
• Australian Accounting Standards Board (AASB)
• Education and Training Reform Act 2006 (ETR)
• Decision of Public Accounts and Estimates Committee of
Parliament December 1997 (PAEC)
• 3.110 Auditor General 30 June 2002 – Overseas Operations
of Victorian TAFE Institute (Auditor General)
• TAFE Governance Review, May 2003 (Governance).
Questions or comments can be addressed to:
Director, Corporate Services
Chisholm Institute of TAFE
121 Stud Road
Dandenong VIC 3175
T +61 3 9212 5259
E [email protected]
Annual Report 2011
123
Disclosures Index and Additional
Compliance Reports
This section of the 2011 Annual Report includes:
Page number
Disclosures Index
125-128
The index of compliance reports, which provides:
• A list identifying the relevant clauses of Victorian legislation with statutory disclosure requirements
• A short description of the relevant requirement
• Details of the page number(s) where this Report provides the relevant details for Chisholm Institute.
Additional information and reports not otherwise included in the 2011 Annual Report, including: Page number
124
• Additional Information Available on Request
129
• Application of the Freedom of Information Act 1982
129
• Application of the Whistleblowers Protection Act 2001
130
• Assets Received Without Due Consideration
130
• Compliance with the Building Act 1993
131
• Engagement of Consultants
133
• Environmental Performance
134
• External Reviews
137
• Financial Management Compliance Framework
137
• Formation and objectives of the Board Chisholm Institute of TAFE
137
• Formation and objectives of the Caroline Chisholm Education Foundation
138
• Human Resources Report
139
• National Competition Policy
140
• Prices, Fees, Charges, Rates and Levies charged by Chisholm Institute of TAFE
141
Chisholm Institute
DISCLOSURES INDEX
CLAUSE
REPORTING REQUIREMENT
(a) REPORT OF OPERATIONS
page
1
CLAUSE
FRD 22
The Report of Operations is to include qualitative and quantitative information on operations of
the Institute and should be prepared on a basis consistent with the financial statements prepared
pursuant to the Financial Management Act 1994. This report is to provide users with information
about:
• The Institute and its activities
• Operational highlights for the reporting period
• Future initiatives and
• Other relevant information not included in the financial statements.
4–20
2
SD 4.2(g)
FRD 22
The Report of Operations must be prepared in accordance with the requirements of the Financial
Reporting Directions.
4
3
SD 4.5.5
Signature of responsible person - Attestation on compliance with the Australian/New Zealand Risk
Management Standard.
37
4
SD 4.2(j)
FRD 22
Signature of Responsible Person –
The Report of Operations must be signed and dated by the Accountable Officer in the case
of a Government Department or, in the case of any other Public Sector Body, a member of the
Responsible Body.
4
STANDARD DISCLOSURES IN THE REPORT OF OPERATIONS
GENERAL INFORMATION
5
FRD 22
Manner of Establishment, including the relevant Minister.
23
6
FRD 22
The Institute’s objectives, functions, powers and duties, linked to a summary of its activities,
programs and achievements for the reporting period.
137
7
FRD 22
Nature and range of service provision, including the communities served.
5-20,
137–139
8
FRD 22
Organisational chart(s) detailing members of the governing Board and the CEO, and organisational
chart(s) detailing occupants of senior officers and their responsibilities.
23-33
Governance
9
TAFE Gov.
Review
Recommendation of TAFE Governance Review May 2003
Outline of the structure of the Board including:
• Committees of Board
• Description of their functions and
• Occupants of each committee. 39–40
10
TAFE Gov.
Review
Outline of the structure of Board including:
• Names and qualifications of members of the Board including knowledge, experience and skills and
• Summary of number of meetings attended by each Board member.
23-33, 39
11
TAFE Gov.
Review
Summary of training undertaken by Board members throughout the year, including the number and
type of programs.
39
12
TAFE Gov.
Review
A summary of performance and activities of the Board including a brief description of the values of
the Board and whether there is a code of conduct used to guide Board decisions.
38-42
13
FRD 22B
Statement on workforce data for the current and previous reporting periods.
139
14
FRD 22B
Statement on the application of employment and conduct principles.
140
15
FRD 22B
Statement on occupational health and safety, including appropriate performance indicators,
outlining the Institute’s performance against such indicators. This should also include details of
assessments and measures taken to improve the occupational health and safety of employees.
41
16
FRD 22B
A general statement on industrial relations within the Institute and details of time lost through
industrial accidents and disputes.
41
DISCLOSURE INDEX
17
FRD 10
The Disclosure Index is to contain a list identifying the relevant clauses of Victorian legislation
including statutory disclosure requirements.
125-128
18
FRD 10
A short description of the relevant requirement.
124
19
FRD 10
The page in the Annual Report where satisfaction of the relevant requirement is disclosed.
124-128
Annual Report 2011
125
Disclosures Index and Additional
Compliance Reports
DISCLOSURES
Disclosure of ex-gratia payments
20
FRD 11
Disclosure in aggregate of the nature and amount of any ex-gratia payments incurred and written
off during the reporting period. This is to be included in the notes to the financial statements.
80
Disclosures of responsible persons.
21
FRD 21A(1)(a)
The name of each person holding a position that meets the definition of responsible person of the
reporting entity at any time during the reporting period.
83
Disclosures of remuneration of executive officers.
22
FRD 21A(1)(b)
Where there is more than one responsible person during any reporting period, the total
remuneration of all responsible persons received or receivable in connection to their employment.
85
23
FRD 21A(1)(c)
An analysis of remuneration of responsible persons
85
• In bands of $10,000 and
• Listing the number of responsible persons whose actual remuneration for the period falls within
each band.
86
24
FRD 21A(1)(d)
A table disclosing the aggregate amount of related party transactions at the reporting date,
including but not limited to the aggregate amount of repayments, shares and share options
and other sources of remuneration that do not come under the definition of any of the above
mentioned categories received by the responsible person in addition to base remuneration.
25
FRD 21(2)(a)
Total remuneration of all executive officers received or receivable in connection to their employment 85
including:
• The remuneration of executive officers acting in the position of an accountable officer at any
time during the reporting period and
• To ensure disclosures are meaningful, additional information may need to be disclosed about the
nature of such remuneration.
26
FRD 21(2)(b)
Base remuneration disclosed separately from actual remuneration. Significant variations between
total and base remuneration should be supported by explanatory commentary.
85
27
FRD 21(2)(c)
Accrual principles that apply in determining remuneration levels. All amounts received or receivable
by the individual are to be disclosed.
85
28
FRD 22
Summary of financial results with comparative information for preceding four years.
44-46
29
FRD 22
Summary of significant changes in financial position.
44-46
30
FRD 22
Summary of operational and budgetary objectives, including performance against objectives and
significant achievements.
44-46,
98-99
31
FRD 22
Events subsequent to balance date that may have a significant effect on operations in subsequent
years, including a summary of major changes affecting the achievement of operational objectives.
82
32
FRD 22
For each consultancy valued in excess of $100,000, set out:
FINANCIAL INFORMATION
• Schedule listing the consultants engaged
• Summary of project involved
• Total project fees approved (excluding GST)
• Expenditure for the reporting period (excluding GST) and
• Future commitments relating to consultant.
126
33
FRD 22
Total number of consultancies individually valued at less than $100, 000 (exclusive of GST).
133
34
FRD 22
Total expenditure (exclusive of GST) of these consultancy engagements.
133
35
FRD 22
Financial information must be consistent with that included in the financial statements.
22
Chisholm Institute
36
FRD 22
The Report of Operations should be presented in a format that complements the financial report as
a whole:
19-20
• Containing any additional information the accountable officer or the governing board considers
appropriate or
• Any information that has been mandated by other authoritative pronouncements.
The Report of Operations must contain general and financial information, including other relevant
financial information, outlining and explaining an entity’s operations and activities for the reporting
period.
37
FRD 27
The Report of Operations must include an audited statement of performance including:
95-97
• The relevant performance targets and indicators as determined by the responsible Minister
• The actual results achieved for that financial year against pre-determined performance targets
and indicators
• An explanation of any significant variance between the actual results and performance targets
indicators and
• The TAFE Statement of Performance Management Certificate.
OTHER RELEVANT INFORMATION
38
FRD 22
Summary of Application of Freedom of Information Act (1982). (Including amendments of
3 August 2007.)
129
39
FRD 22
Statement on compliance with building and maintenance provisions in the Building Act 1993.
(Including amendments of 1 July 2007.)
131-132
40
FRD 22
Summary of the application and operation of the Whistleblowers Protection Act 2001, including
disclosures required by the Act. (Including amendments of 1 July 2007.)
130
41
FRD 22
Statement on implementation and compliance with National Competition Policy, including
statement on compliance with policy statements:
140-141
Statement on implementation and compliance with National Competition Policy, including
statement on compliance with policy statements:
• “Competitive Neutrality: A Statement of Victorian Government Policy”
• “Victorian Government Timetable for the Review of Legislative Restrictions on Competition” and
• Any subsequent reforms.
134-137
42
FRD 22
Summary of environmental performance.
43
FRD 22
Statement (to the extent applicable that the information listed in Appendix 1) is available on request 123-124
to the relevant Minister, members of Parliament or the public.
This includes additional information available on request subject to provision of
Freedom of Information Act.
44
FRD 22
Statement that declarations of pecuniary interests have been duly completed by all relevant
officers.
129
45
FRD 22
Details of shares held by senior officers (as nominees or held beneficially in a statutory authority or
subsidiary).
40
46
FRD 22
Details of publications produced by the entity about itself and how they can be obtained.
123
47
FRD 22
Details of major promotional, public relations and marketing activities undertaken to develop
community awareness of the Institute and its services.
19
48
FRD 22
Details of changes in prices, fees, charges, rates and levies charged by the Institute.
141
49
FRD 22
Details of any major external reviews carried out on the Institute.
137
50
FRD 22
Details of major research and development activities undertaken by the Institute.
129
51
FRD 22
Details of overseas visits undertaken including a summary of the objectives and outcomes of
each visit.
129
52
FRD 22
List of major committees sponsored by the Institute, the purposes of each committee and the
extent to which the purposes have been achieved.
129
Annual Report 2011
127
Disclosures Index and Additional
Compliance Reports
OVERSEAS OPERATIONS OF VIC.TAFE INSTITUTES
53
PAEC
Financial and other information on initiatives taken or strategies relating to the Institute’s
international operations.
69
AUDITOR GENERAL
Recommendation in relation to Overseas Operations of Victoria TAFE Institutes –
3.110 Auditor General, Special Reviews, 30 June 2002.
54.
3.110
Information in Annual Reports of TAFE Institutes should include:
• Nature of strategic and operational risks
38, 40,
87-93
• Strategies established to manage such risks
• Performance measures and targets formulated for off-shore operations and
• Extent to which expected outcomes have been achieved.
FINANCIAL REPORTING DIRECTION 27 – PRESENTATION OF REPORTING AND
PERFORMANCE INFORMATION
55.
FRD 27A
Reporting and Performance Information
Reporting and Performance Information should be presented using Key Performance Indicators
(KPIs).
A Statement of Performance Management Certificate should also be completed.
121-122
(a) FINANCIAL STATEMENTS
Part 7 of the financial management act 1994 (fma)
56.
FMA 49(a)
Must contain such information as required by the Minister.
49
57.
FMA 49(b)
Must be prepared in a manner and form approved by the Minister.
49
58.
FMA 49(c)
Must present fairly the financial transactions of the department or public body during the financial
year to which they relate.
49
59.
FMA 49(d)
Must present fairly the financial position of the department or public body as at the end of
the year.
49
60.
FMA 49(e)
Must be certified by the Accountable Officer for the Department or public body in the manner
approved by the Minister.
49
The Financial Statements must be prepared in accordance with:
61.
SD 4.2(a)
Australian Accounting Standards (AAS and AASB standards) and other mandatory professional
reporting requirements (including Urgent Issues Group Consensus Views and Statements of
Accounting Concepts).
49
62.
SD 4.2(a)
Financial Report Directions.
49
63.
SDA 4.2(a)
Business rules.
49
The Financial Statements are to comprise the following:
64.
SD 4.2(b)
Operating Statement.
50
65.
SD 4.2(b)
Balance Sheet.
51
66.
SD 4.2(b)
Statement of recognised income and expenses.
69-73
67.
SD 4.2(b)
Cash Flow Statement.
53
68.
SD 4.2(b)
Notes to the financial statements.
54-94
The Financial Statements must, where applicable, be signed and dated by the
Accountable Officer, CFAO and a member of the Responsible Body stating whether,
in their opinion:
128
69.
SD 4.2(c)
The financial statements present fairly the financial transactions during the reporting period and
the financial position at the end of the period.
49
70.
SD 4.2(c)
The financial statements are prepared in accordance with this direction and applicable Financial
Reporting Directions.
49
71
SD 4.2(c)
The financial statements comply with applicable Australian accounting standards (AAS and AASB
standards) and other mandatory professional reporting requirements (including Urgent Issues Group
Consensus Views and Statements of Accounting Concepts).
49
Chisholm Institute
Additional Information
Available on Request
Application of the Freedom of
Information Act 1982
Consistent with the requirements of the Financial Management
Chisholm Institute of TAFE has implemented procedures which,
Act 1994, Chisholm has prepared materials on the following topics,
subject to privacy and confidentiality provisions, facilitate all
which are available on request:
reasonable requests for information from students, staff and the
general public without recourse to the Freedom of Information
• Statements regarding declarations of pecuniary interest
Act 1982. General enquiries about Chisholm Institute should be
• Details of publications produced by Chisholm Institute of
addressed to:
TAFE and the places where publications can be obtained
• Details of research and development activities undertaken
by Chisholm Institute of TAFE
• Details of overseas visits undertaken, including a summary
of the objectives and outcomes of each visit
• Details of promotional, public relations and marketing
Chisholm Institute of TAFE
PO Box 684
Dandenong VIC 3175
or visit our website chisholm.edu.au
All Freedom of Information requests should be forwarded to:
activities undertaken by Chisholm Institute of TAFE to
The Freedom of Information Officer
develop community awareness of the Institute and the
Chisholm Institute of TAFE
programs and services provided
PO Box 684
• Details of major committees sponsored by Chisholm
Institute of TAFE and the extent to which their purposes
have been achieved.
Dandenong VIC 3175
Chisholm Institute of TAFE may levy a charge for information
provided that is subject to a Freedom of Information request in
accordance with the Freedom of Information (Access Charges)
Enquiries regarding this information
should be directed to:
Regulation 2004.
Director, Corporate Services
During the year ended 30 December 2011, Chisholm received three
Chisholm Institute of TAFE
PO Box 684
applications for access to documentary information under Section
17 of the Freedom of Information Act 1982.
Dandenong VIC 3175
T +61 3 9212 5056
E [email protected]
Annual Report 2011
129
Application of the Whistleblowers
Protection Act 2001
Assets Received Without Due
Consideration
Chisholm Institute of TAFE has implemented a policy and
Chisholm Institute receives financial support from industry and the
procedural framework to encourage and facilitate the making
community in the form of donated assets and materials provided at
of whistleblower disclosures of improper conduct by Chisholm’s
no cost. During 2011, these donations took the form of:
officers and employees. Chisholm’s procedure provides protection
and support for whistleblowers and establishes a system for
matters to be investigated and, where necessary, corrective actions
to be taken.
• Cash donations received by Chisholm for the Caroline
Chisholm Education Foundation
• Equipment, furniture and fittings and other consumable
materials donated to Chisholm Institute which assist in the
For the year ended 31 December 2011:
provision of apprenticeship programs and the delivery of
(a)
other programs
There was one matter raised with Chisholm under the
Whistleblowers Protection Act 2001
(b)
There were no matters referred to Chisholm for
investigation by the Ombudsman in 2011
(c)
There were no matters referred to Chisholm Institute which
the Institute declined to investigate.
130
Chisholm Institute
• Additional supplier price discounts for equipment purchased
for training purposes
• Cash and materials donations specifically for student award
presentations.
Compliance with the Building Act 1993
Building Act 1993
General Statement
Chisholm Institute holds all plans and documentation for building extensions and new buildings lodged for issue of building approvals
by certified building surveyors. Upon completion of construction the Institute has obtained Certificates of Occupancy and practical
completion certificates from the relevant architects and surveyors.
Assurance Programs
Certification of Building Projects
During 2011 architects provided completion certificates and necessary building compliance and
regulatory certificates were received for all projects completed during the year.
Building Maintenance Programs
Chisholm Institute has an ongoing maintenance program (using Institute’s staff and engagement
of specialist external contractors) for works to the existing buildings controlled by Chisholm.
Compliance Statement
It is considered that all buildings on campus currently conform to the Building Regulations as
existed at the time of construction of the respective buildings. All new buildings constructed
since the promulgation of the Building Act 1993, comply with those relevant standards. Chisholm
Institute has an ongoing program to ensure that any alterations or improvements to buildings
meet the necessary standards to ensure that they are safe and fit for purpose.
For the year ended 31 December 2011 progress towards full compliance with the Buildings Act 1993 is summarised as follows:
Building Works
2011
2010
2009
New buildings certified for approval
0
3
2
Works in progress subject to mandatory inspections
0
3
1
4*
3
3
Notices issues for sub standard buildings requiring urgent attention
0
0
0
Other notices issued involving major expenditure and urgent attention
0
0
0
New occupancy permits issued
Maintenance
Conforming
Number of Buildings occupied by Chisholm
(Note the above numbers are buildings in their entirety, floors and levels have
not been considered.)
17
17
17
Dandenong
Frankston
27**
25
25
Berwick
9***
8
6
Cranbourne
5****
4
3
Bass Coast
5*****
4
3
Mornington Peninsula
TOTAL
Number of buildings conforming to the above standards
Number of non conforming buildings vacated
Number of buildings not conforming to standards
6
6
6
69
64
60
67
64
60
0
0
0
Refer to Subdivision
Statement
Note:
* Cranbourne Water Centre, Bass Coast Portable, Dandenong ALC, Dandenong Dream
** ALC, Dream,
***
Berwick Portables Relocation
****
Cranbourne Water Centre
***** Bass Coast Portable
Annual Report 2011
131
Sub Division 1 of the building regulation is related to all
new buildings or section of existing buildings altered
after the 1st July 1994 - There are approximately 8 buildings
out of the 64 that are considered to be Subdivision 1 Type
buildings, all buildings are issued with an Annual Essential Safety
Measures Report.
Sub Division 2 relates to all buildings constructed or
altered prior to 1st July 1994 - All Sub-Division 2 buildings
have been provided with a maintenance determination in
Accordance with Part 1215 of the Building Regulations, which
requires all buildings to be provided with this document and
subsequent Annual Essential Safety Measures Reports prior to the
13th June 2009.
Estimated value of maintenance backlog:
As at 1 January 2011 - $2.7 million
As at 31 December 2011 - $3 million
Building works undertaken by Chisholm during the year ended 31
December 2011 were as follows:
• Partial implementation of disability access rectification
works across all campuses
• Quarterly inspections completed by an accredited external
consultant to ensure that all essential service
requirements are met
• Completion of the Cranbourne Sustainable Water
Management Centre
• Relocation and fit out of Portable from Frankston to Bass
Coast
• The relocation of portable from Leongatha tafe to Berwick
and Bass Coast
• Completion of the Dandenong Dream building
• Completion of the Dandenong Automotive and Logistic
Centre
• Extension to Berwick TEC for bricklaying training
Despite carrying out backlog works to the value of $552,000 in
2011 the outstanding backlog maintenance remains at or above
the $2.7 million. This is due to the following:
• The majority of the items and their cost estimates are now
7 years old and needs updating.
• A lot of backlog items that were completed with previous
years backlog funding are now due for maintenance again.
• Refurbishment of Cafeteria at Dandenong and Frankston
• Infrastructure for wind mill installations at Berwick
• Sustainability initiatives implemented, completed projects
include:
-
Individual building Energy metering installations
-
Internal and external recycling stations rolled out in new
buildings
Some of these are captured in the structured maintenance
-
Solar PV 8kw installation
• In 2010 structured maintenance plan was prepared and for
-
20kL water harvesting project
2011 the projected estimate for such work was $677,000
-
Thermoshield energy efficient roof coating installation
for cyclic maintenance. Unfortunately this was not funded
-
Lighting upgrades.
plan
hence the identified structured maintenance items were
transferred as outstanding backlog maintenance
• There has been increase in number of new buildings added
to our stock since 2004 and each of them requires planning
for cyclic maintenance and if neglected will become back log
liability
• Unfortunately due to funding constraints the department
did not have the ability to implement the 2011 structured
maintenance plan hence realistically the backlog
maintenance liability will continue to increase
• Therefore the estimated backlog maintenance by end of
2011 will creep up to approximately $3 million
• Furthermore, due to budget constraints particularly with
responsive maintenance there are items of building and
services requests that were not completed and such items
transferred to backlog list. Recent concerns have been
on the conditions of our Plant and Equipment for HVAC
systems for older buildings.
132
Chisholm Institute
Engagement of Consultants
The Financial Management Act 1994 defines a consultant as a person who or an organisation which:
• Provides specialised analysis and advice to facilitate decision making
• Performs a one-off task or set of tasks
• And/ or performs a function involving skills or specialised knowledge not available within the Institute.
During the year ended 31 December 2011, Chisholm Institute of TAFE:
• Engaged ten consultants costing more than $100,000. Details are as follows:
Consultant
Project
Approved
Expenditure
2011
Expenditure
(ex GST)
Future
Commitments
Vincent Chrisp Architects
Berwick Trade Careers Centre – Design
Consultancy Fees
1,403,934
428,803
975,131
Gray Puksand Pty Ltd
START Trade Centre - Design
Consultancy Services
1,253,884
298,940
954,944
M P Cordia & Associates Pty Ltd
START Trade Centre Consultants –
Quantity Surveying Services
236,940
90,930
146,010
Avaxa Pty Ltd
STRATA – Student Administration
System
420,762
420,762
NIL
Total Essential Services Group Pty
Ltd
Safety Auditing Reporting and
Replacement
213,824
261,091
NIL
Reactive Media Pty Ltd
Website Development and Maintenance
213,543
213,202
NIL
Earth Systems Consulting Pty Ltd
International Projects – Cambodia Water
215,270
169,095
46,175
The Teleran Group
360 Degree Feedback
115,88.5
141,394
NIL
Synoptic Consulting Pty Ltd
Workflow Project
120,000
109,839
75,000
• Engaged other 21 consultants, each costing less than $100,000. The total cost of these consultancies was $799,920 (ex GST).
Annual Report 2011
133
Environmental Performance
Sustainability can be described as the interconnectedness of a healthy environment, social justice, equity and economic vitality so that the
quality of human life is improved while living within the carrying capacity of supporting ecosystems.
Chisholm seeks to integrate sustainability principles into all aspects of the organisation so that it is recognised as a leader in the design
and delivery of sustainable education and training for social, environmental and economic prosperity and understanding through life long
education, training and community capacity building.
Chisholm recognise its own sustainability is interconnected with the sustainability of its activities which require coherence and congruence
between sustainability, education delivery and assessment, campus operations and development, values, policy and procedures, behaviour
and culture.
Chisholm’s core business is vocational education and training and the direct environmental impacts of this have been identified and targets
created relating to greenhouse gas emissions, energy, water, waste, onsite renewable generation, GreenPower purchase, embedding
sustainability into institute business and education. Further to this Chisholm is committed to actions relating to green procurement and
education for sustainability, which will support the Chisholm 2020 target of 50 per cent reduction in the Chisholm sustainability index.
In 2011 Chisholm successfully submitted its 2012 - 2013 ResourceSmart Strategy to Sustainability Victoria and continued to support
staff and student education for sustainability both formally and informally via infrastructure and engagement projects.
Key sustainability priorities for 2011 included:
ResourceSmart Strategy
ResourceSmart Tertiary Education (RSTE) is a program developed in a partnership with Skills Victoria, Department of Sustainability &
Environment (DSE) and Sustainability Victoria. The program aligns with Government policy commitments including:
• Living Sustainably (2009)
• National VET Sector Sustainability Policy * Action Plan (2009 – 2012)
• Links with existing environmental programs ie. EREP, WaterMAP, EEO, NGERS, Waste Wise, Skills Victoria, TEFMA, SCG.
The Chisholm ResourceSmart Strategy covers the following targets, relative to 2007 (base year):
Target (baseline 2007)
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Emission Reduction
-15%
-20%
-25%
-30%
-35%
-40%
-43%
-45%
-48%
-50%
Energy Reduction
-15%
-20%
-25%
-30%
-35%
-40%
43%
-45%
-48%
-50%
Green Power Purchase
20%
20%
25%
30%
35%
40%
45%
50%
55%
60%
Renewable Generation
5%
8%
10%
12%
15%
18%
20%
25%
28%
30%
Water Reduction
-15%
-25%
-35%
-55%
-65%
-70%
-75%
-80%
-85%
-90%
Waste Recycling
25%
35%
45%
50%
55%
60%
65%
70%
75%
80%
The Chisholm ResourceSmart Strategy not only covers the above but also green purchasing, built environment design, transportation,
education for sustainability, and embedding of sustainability throughout our business.
A detailed ResourceSmart action plan for 2012 - 2013 was developed in line with the targets.
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Chisholm Institute
Environmental Sustainability Index
The Environmental Sustainability index aligns with ResourceSmart strategy targets, Chisholm strategy program (2010 - 2014) framework
and Chisholm 2020 which includes the 2014 target: 32 per cent reduction in the environmental sustainability index, relative to 2007.
The index is calculated using weighted emissions, energy and water consumption against Students (EFTSL) plus Staff (EFT). As Chisholm
develops its sustainability targets and actions further measures could be added including education for sustainability and social
responsibility. This single measure enables Chisholm to take a holistic view of sustainability.
A summary of the index is below:
Chisholm Environmental Sustainability Index 2010 - 2014
Year
Target Sustainability
Index
Target Reduction %
Actual Sustainability
Index
Actual Performance %
2007 (Baseline)
1.63
0%
1.63
0%
2008
1.59
-2%
1.64
1.6%
2009
1.55
-5%
1.41
-13%
2010
1.46
-10%
1.39
-15%
2011
1.38
-15%
1.41
-13%
Education for Sustainability
In 2011 Chisholm continued its education for sustainability initiatives in line with the National VET Sector Sustainability Policy Action Plan
(2009 - 2012) and VET targets. To date the Professional Learning and Development department have provided sustainability training to
over 350 teaching staff in both the Certificate II and Diploma levels.
Annual Report 2011
135
Sustainability Performance
Chisholm reported it sustainability performance quarterly to the Resource Management Committee.
The 2011 performance summary is below:
Impacts/Indicators
Measure
Baseline 2007
Actual 2011
% (‘07 vs’10)
M2
98,784
111,719
13.1%
SCH
9,250,627
11,194,353
21.0%
Staff Numbers (Mth Avg)
#
1,332
1,959
47.1%
Student Enrolments
#
40,329
43,127
6.9%
Square Meters (Mth Avg)
Student Contact Hours
Staff EFT (Avg)
EFT
956
1,109
15.9%
EFTSL
12,848
15,548
21.0%
EFTSL + EFT
13,805
16,657
20.7%
t Co2-e
14,223
15,484
Student FTESL (SCH/720)
Student (EFTSL) + Staff (EFT)
2011 TARGETS
T1 - Emissions Reduction (15%)
T2 - Energy Reduction (15%)
t CO2-e/EFTSL+EFT
1.03
0.93
MJ
61,636,903
64,473,039
Total MJ/EFTSL+ EFT
4,465
3,871
MJ
3,187,044
5,173,876
%
9.8%
14.9%
MJ
0
24,926
%
0
0.04%
kL
36,744
30,154
kL/EFTSL+ EFT
2.66
1.81
T3 - Green Power Purchase (20%)
T4 - Renewable Energy (5%)
T5 - Water Reduction (15%)
T6 - Waste to Landfill Reduction (25%)
t
847
1,318
t/EFTSL+ EFT
0.0613
0.0791
% recycled
13.3%
26.3%
Energy Efficient Design and Environmental Sustainable Design
EED and ESD principles are incorporated into the design of all new buildings. This includes the following consideration:
• Building orientation to capture northerly sun
• Exterior shading of buildings to reduce direct sunlight
• Light wells in corridors to reduce dependency on artificial lighting
• Louvered internal windows to promote increased airflow
• Operable external windows to increase fresh air circulation
• Use of natural ventilation and ceiling fans
• Use of low embodied energy materials in construction
• New buildings to be built using Green Star rating
• Building automation systems
• Only having air conditioning in staffroom, offices, PC labs; classrooms
are naturally ventilated, and/or use high energy efficient units
• Use water storage tanks
• Solar heating
• Use of energy efficient light fittings
• Light sensors.
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Chisholm Institute
-9.8%
-13.3%
5.1%
0.04%
-32.0%
28.9%
Examples of 2011 construction projects using these principles
include:
Formation and Objectives of the
Board of Chisholm Institute
• Dandenong Automotive and Logistics Centre
The Board of Chisholm Institute of Technical and Further Education
• Dandenong Dream Trade Training Centre
(TAFE) was created by Ministerial order No.8 dated 9 October 2007.
• Cranbourne Sustainable Water Centre.
Ministerial Order No.8 was made under section 3.12(2), 5.2.12 and
Sustainable Campus Group (SCG)
Chisholm Institute is an active member of the Sustainability
5.10.4 of the Education and Training Reform Act 2006. Ministerial
Order Number 8 amends the Order of the Governor in Council of
Chisholm Institute of Technical and Further Education on 16 April
2002 pursuant to the Vocational Education Act 1990.
Campus Group (SCG). The SCG is focused on progressing
sustainability in the tertiary and vocational education sector.
Chisholm Institute of TAFE is also the legal successor to the former
In 2011 Chisholm participated in the SCG sector reports. The
Council of Chisholm Institute of Technical and Further Education,
reports are focused on participating Institutes (Universities and
which was abolished on 16 April 2002.
TAFEs) operational environmental performance such as energy,
water, waste and emissions; however it also captures institutional
commitment including education for sustainability. The report is
a national benchmark report on environmental performance for
the sector and can be viewed here: http://monash.edu/research/
sustainability-institute/assets/documents/scg_aust_tertiary_ed_
sust_report_2011_web.pdf
The Board is responsible for the management and strategic
development of Chisholm Institute in accordance with duties and
obligations specified in the Education and Training Reform Act
2006 and Ministerial Order No.8 (the Constitution of the Board).
The Board’s business is consistent with its Constitution and
Council’s Governance Manual, which regulates the conduct of the
Board and Board Committee meetings and further details the
External Reviews
values and goals of the Board.
There were no external reviews carried out in respect of the
operation of Chisholm Institute during the year ended 31
December 2011.
Financial Management Compliance
Framework
Under the Victorian Government Financial Management
Compliance Framework (FMCF), Chisholm Institute makes an annual
declaration on financial management, taxation, purchasing theft
and losses, compliance and reporting processes.
In accordance with the FMCF, Maria Peters, CEO, and the
Accountable Officer for Chisholm Institute and Grant Radford, Chief
Finance and Accounting Officer for Chisholm Institute have made a
declaration to the Institute Board that Chisholm’s financial reports
are founded on sound risk management, internal compliance and
control systems.
In 2011, Chisholm Institute reports no non-compliances with the
FMCF.
Annual Report 2011
137
Clauses 4 and 5 of the Board’s Constitution specify the following
Clause 5: Duties of the Board
objectives and duties of the Board:
In addition to the duties imposed on the Board by section 3.1.15
Clause 4: Objectives of the Board
of the Act, other provisions of this Order and any other duties
a)
Within the context of national and state policy and
management frameworks, to establish goals for the
imposed by law, the Board must:
a)
objectives
Institute
b)To provide quality vocational education and training and
b)Operate in accordance with the economic and social
objectives and public sector management policy
adult, community and further education programs and
established from time to time by the Government of
services,
Victoria
and related services and research which:
i.
improve and support the competitiveness of
c)Provide all assistance and information as the Minister, the
Secretary or the Deputy Secretary may reasonably require
industry
ii.
support the employment and career opportunities
of individuals
iii.serve the needs of the general community
iv.
c)
contribute to the financial viability of the institute
To govern and control the Institute efficiently and
effectively and to optimise the efficient use of resources
d)To seek and identify needs for high quality vocational
e)
f)
from the Board
d)
Ensure the safe custody and proper use of the common
seal of the Board.
Formation and Objectives of the
Caroline Chisholm Education
Foundation
education and training in industry or markets generally and
The Caroline Chisholm Education Foundation is a ‘controlled-entity’
to fulfil those needs
of the Chisholm Institute of TAFE Board, which operates under a
To involve all staff in the continuous development of their
Trust Deed approved by the Board and an operational agreement
skills
with the Board.
To develop and maintain strong relationships with the local
The Caroline Chisholm Education Foundation began operations
and regional communities in which the Institute operates
in 2006. The Foundation proudly bears the name of the pioneer
g)To ensure the provisions of vocational education, training
and consultancy services to industry and students, both
in Australia and the Asia Pacific region, is in accordance
h)
Take all reasonable steps for the advancement of its
Caroline Chisholm who, on her arrival in the new Australian colony
in 1838, was compelled to help change the appalling conditions of
poor, vulnerable migrants. “I promise to know neither country nor
with the Institute’s quality policy and national and State
creed, but to serve all justly and impartially,” she wrote.
guidelines
Objectives of the Foundation
To enter partnerships which strengthen the Institute’s
The objectives of the Foundation set out in the Trust Deed are as
capacity to achieve the objectives.
follows:
Nothing in this clause affects the functions of the Board under
section 3.1.13 of the Act.
a)To strive to continue Caroline Chisholm’s values and legacy
of social justice by providing support to disadvantaged
students and members of the Chisholm Institute of TAFE
community
b)To provide scholarships, studentships, fellowships, bursaries
and other forms of financial assistance, and support
to students of the Institute (past, present or future) or
members of the Institute community who are confronted
by disadvantage, adversity, lack of opportunity or other
circumstances that impede their advancement in education
or the development of their vocational skills
c)To provide sponsorship or other forms of financial
assistance to persons living outside Australia who are
confronted by disadvantage, adversity, lack of opportunity
or other circumstances that impede their advancement in
education or the development of their vocational skills
138
Chisholm Institute
d)To create opportunities for staff and students of the Institute to participate in philanthropic activities, training programs and
educational or vocational initiatives, and to provide a source of funding for such activities, programs and initiatives that would assist
and support students of the Institute (past, present or future), members of the Institute community or other persons confronted by
disadvantage, adversity or lack of opportunity in educational advancement or vocational skill development in accordance with these
general objects
e)extend invitations to staff, students, alumni, parents of students and individual organisational and corporate friends of the Institute
to become contributors to the Foundation, and through such contribution to participate and join more actively and effectively in
supporting and assisting the Institute to promote and carry out the objectives of the Foundation.
Human Resources Report
The Workforce Capability Plan 2011 focused on a number of significant projects across three areas: Workforce Management, Organisational
Development and Occupational Health and Well-being. The outcomes of these projects in 2011 supported Chisholm Institute’s strategic
intent and direction.
Key achievements undertaken by Chisholm to support workforce capability in 2011 included:
• Implementation of a new and improved KIOSK function for the Institute’s Human Resource Information System – CHRIS 21. The
new KIOSK enabled more streamlined and efficient processing of leave applications on-line for staff and provides enhanced details
about staff leave entitlements and balances. The new KIOSK also enables staff to book into and have recorded on the Chris record
all their professional development activity
• Implementation of arrangements to support staff accessing the new Federal Government Paid Parental Leave arrangements
• Development and implementation of new performance management and review processes including new templates for use by
staff
• Development of an In Principle Agreement for a new Enterprise Agreement for the Institute’s professional (non-teaching) staff;
which will provide improved conditions of employment, an enhanced classification and career structure and annual pay increases
• Review of all OH&S policies and procedures following an OH&S internal audit review
• Implementation of emergency management arrangements across the Institute including evacuation drills on all campuses
• Implementation of Chisholm’s service recognition program with inaugural event for Chisholm’s foundation employees
• A variety of Occupational Health and Well-being Programmes.
Workforce Data Equivalent Full-Time (EFT) Staff
EFT Average Staffing Comparison
2011
2010
2009
12
12
12
Teaching
683
646
698
PACCT
426
423
370
Others
0
0
1
1,121
1,081
1,081
Executive Officers
Total
Note:
The information above represents an average equivalent full-time (EFT) staffing figure for the 2009, 2010 and 2011 calendar years,
i.e. the sum of the monthly figures divided by 12.
Annual Report 2011
139
Public Sector Employment and Conduct
Principles
Chisholm’s employment policies and processes are based on the
principle of merit, relevant award and statutory requirements, and
best practice public sector approaches.
The Institute’s Code of Conduct which is reviewed annually
provides guidance to all staff on expected behaviour and
professional conduct and is based on the Institute values,
the Victorian Public Sector Model and other best practice
examples. Chisholm is committed to equal opportunity and fair
and transparent processes in all human resource management
procedures.
General Statement on Industrial Relations
Chisholm continues to have regular consultative arrangements in
place with both major unions, the Australian Education Union (AEU)
and National Tertiary Education Union (NTEU). Chisholm also uses
the dispute resolution procedures in its Certified Agreements to
ensure issues that may arise are addressed appropriately and in a
timely manner.
There were no days lost due to industrial action in 2011.
WorkCover/Return to Work
See OH&S report.
140
Chisholm Institute
National Competition Policy
Chisholm has developed costing and pricing models that apply with
Chisholm costs including overhead, infrastructure and other indirect
costs, where appropriate, to take into account any competitive
advantage that Chisholm may have.
This enables Chisholm to comply with National Competition Policy,
including the requirements of the Government Policy statement,
“Competitive neutrality: A Statement of Victorian Policy” and
subsequent reforms.
Prices, Fees, Charges, Rates
and Levies charged by
Chisholm Institute of TAFE
• Traineeships - $1.84 per student enrolled hour. The
minimum fee for this category was $187.50 and the
annual maximum fee was $1,250
• Skills Building - $1.84 per student enrolled hour. The
minimum fee for this category was $187.50 and the
Chisholm charges a range of fees and prices for programs and
annual maximum fee was $1,250
services offered by the Institute. For 2011, the fees and charges
• Skills Deepening - $3.79 per student enrolled hour. The
included:
(a)
minimum fee for this category was $375 and the annual
maximum fee was $2,000. A new tuition fee concession
2011 Fees and Charges
maximum of $100 was introduced for young people under
From 1 July 2009, in line with the government policy
25 years undertaking Diploma and Advanced Diploma
initiative, Securing Jobs for Your Future – Implementation
qualifications from 1 February 2011.
of the Skills Reform, Chisholm introduced a new Fees and
Charges schedule. Certain concessions and exemptions
applied
(b)compulsory service and amenities fee charged for students
enrolling in government funded programs for the purpose
(i)For students enrolled before 1 July 2009 the
of providing student services and amenities. The fee is
following applied: A compulsory tuition fee of $1.43
based on 21 cents per student enrolled hour enrolled with
per student enrolled hour charged for government
a minimum fee of $26 and a maximum fee of $82. This fee
subsidised programs in accordance with Ministerial
Directions about fees and charges. The minimum
fee for students in 2011 enrolled before 1 July
has not been increased since 2006
(c)A non-compulsory materials fee for students enrolling in
government funded programs which covers the actual cost
2009 was $57. The annual maximum fee for
of providing materials or services used or retained by a
students enrolled before 1 July 2009 was $916
student in a particular course of study. The fee varies for
(ii)For students enrolled on or after 1 July 2009 the
each course depending upon requirements. Full details are
following applied: A compulsory tuition fee for
government subsidised programs in accordance
with Ministerial Directions about fees and charges,
provided to each student prior to enrolment
(d)Programs and services provided on a fee-for-service basis
and priced in accordance with National Competition Policy
based on an hourly rate per enrolled hour classified
in one of the five Skills Reform course categories:
• Foundation Skills - $1.08 per student enrolled hour. The
minimum fee for this category was $50 and the annual
maximum fee was $500
• Skills Creation - $1.51 per student enrolled hour. The
principles
(e)
Programs and services provided to international students
and customers which are costed on a commercial basis
(f)Other fees and charges of a cost-recovery nature, e.g.
library fines, parking fines, photocopying and printing
charges for staff and students.
minimum fee for this category was $105 and the annual
maximum fee was $875
• Apprenticeships - $1.40 per student enrolled hour. The
minimum fee for this category was $58 and the annual
maximum fee was $923
Annual Report 2011
141
Acronyms
This listing is prepared to assist in the understanding of the Annual Report and related materials by the provision of the listing of acronyms
commonly used at Chisholm and in the Vocational Education and Training (VET) Sector.
142
AAS
Australian Accounting Standard
AASB
Australian Accounting Standards Board
ABS
Australian Bureau of Statistics
ABSTUDY
Aboriginal Study Assistance Scheme
ACCI
Australian Chamber of Commerce and Industry
ACE
Adult and Community Education
ACER
Australian Council for Education and Research
ACFE
Adult, Community and Further Education
ACPET
Australian Council of Private Education and Training
ACSA
Australian Curriculum Studies Association
ACVETS
Australian Committee on Vocational Education & Training Statistics
ADF
Australian Defence Force
AEU
Australian Education Union
AFO’s
Apprenticeship Field Officers
AIG
Australian Industry Group
AITN
Australian International TAFE Network
AITD
Australian Institute of Training and Development
ALA
Adult Learning Australia
ALBE
Adult Literacy and Basic Education
AMES
Adult Multicultural Education Services
AMEP
Adult Migrant English Program
AQF
Australian Qualifications Framework
AQTF
Australian Quality Training Framework
ARC
Australian Research Council
ARMC
Audit and Risk Management Committee
ASF
Australian Standards Framework?
ASIC
Australian Securities and Investments Commission
ATAS
Aboriginal Tutorial Assistance Scheme
ATO
Australian Taxation Office
ATS
Australian Traineeship System
AVETMISS
Australian Vocational Education and Training Management Information Statistical Standard
AVTS
Australian Vocational Training System
BOS
Board of Studies
BIS
Business Intelligence Solutions
CAE
Council of Adult Education
CALD
Culturally and Linguistically Diverse
CBT
Competency Based Training
CDG
Chisholm Directors’ Group
CCEF
Caroline Chisholm Education Foundation
CEDA
Committee for Economic Development of Australia
CEO
Chief Executive Officer
CFO
Chief Finance Officer
CIO
Chief Information Officer
CGEA
Certificate of General Education for Adults
CHRIS
Complete Human Resources Information System
CIES
Centre for Integrated Engineering & Science
Chisholm Institute
CMG
Chisholm Managers Group
CMM
Curriculum Maintenance Manager
COAG
Council of Australian Governments
CRC
Cooperative Research Centres
CRICOS
Commonwealth Register of Institutions and Courses for Overseas Students
CSF
Curriculum Standards Framework
DEEWR
Department of Education, Employment & Workplace Relations (Federal)
DEECD
Department of Education, Early Childhood Development (State)
DIIRD
Department of Innovation, Industry and Regional Development (State)
DREAM
Dandenong Regional Educational Alliance Model (Dandenong TTC)
EBA
Enterprise Bargaining Agreement
EEO
Equal Employment Opportunity
EFT
Equivalent Full Time (when referring to staffing)
EFT
Electronic Funds Transfer (when referring to cash or banking)
EIF
Education Investment Fund
ELICOS
English Language Intensive Course for Overseas Students
ETR
Education and Training Reform Act 2006
ERC
Expenditure Review Committee (of the State Government)
FFS
Fee for Service
FLAG
Flexible Learning Advisory Group
FMA
Financial Management Act 1994
FMCF
Financial Management Compliance Framework
FMI
Frontline Management Initiative
FWA
Fair Work Australia - Replaces Australian Industrial Relations Commission
HELP
Higher Education Loan Program
GST
Goods and Services Tax
HRD
Human Resources Development
IFRS
International Financial Reporting Standards
IME
Invalid Module Enrolment
ISC
Industry Skills Council
ISP
International Student Programs
ISU
Industry Services Unit
IT S
Information Technology Services
ITAB
Industry Training Advisory Board
JSAP
Job Services Australia Provider
KPI
Key Performance Indicator
LACP
Local Aboriginal Community Partnerships
LGA
Local Government Area
LLEN
Local Learning and Employment Network
LLNP
Language, Literacy and Numeracy Program
LOTE
Language other than English
LRC
Library Resource Centre
MCTEE
Ministerial Council for Tertiary Education and Employment
MCVTE
Ministerial Council of Vocational and Technical Education Replaced by MCTEE
MBA
Multi-Business Agreement (Certified Agreement)
MIPS
Managed Individual Pathways
Annual Report 2011
143
144
MLCR
Module Load Completion Rates
NATA
National Australian Testing Authority
NCVER
National Centre for Vocational Education Research
NISC
National Industry Skills Committee
NOOSR
National Office of Overseas Skills Recognition
NQC
National Quality Council
NTEU
National Tertiary Education Union
NTIS
National Training Information Service
NVEAC
National VET Equity Advisory Council
OECD
Organisation for Economic Co-operation and Development
OH & S
Occupational Health & Safety
OUA
Open Universities Australia
PACCT
Professional, Administrative, Clerical, Computing and Technical
PPP
Productivity Places Program
PV
Partnerships Victoria (Public Private Partnerships)
QMS
Quality Management System
RATE
Register of Australian Tertiary Education
RCC
Recognition of Current Competencies
RDA
Regional Development Australia
RMC
Resource Management Committee
RPL
Recognition of Prior Learning
RTO
Registered Training Organisation
SCH
Student Contact Hours
SD
Standing Directions of the Minister for Finance issued under the Financial Management Act 1994
SDMC
Strategic Development and Monitoring Committee
SELLEN
South East Local Learning and Employment Network
SEMRC
South East Migrant Resource Centre
SME
Small / Medium Enterprise
SMS
Student Management System
START
School TAFE Alliance Regional Trade (Frankston TTC)
TAFE
Technical and Further Education
TDA
TAFE Directors Australia
TEC
Technical Education Centre
TEQSA
Tertiary Education Quality Standards Agency
TESOL
Teaching of English to Students of Other Languages
TFN
Tax File number
TLCF
Teaching and Learning Capital Fund
TOEFL
Test of English as a Foreign Language
TQM
Total Quality Management
TRIM
Chisholm Records Management System
TSN
Training Support Network
TTC
Trade Training Centre
TVET
Company owned by MCTEE
U3A
University of Third Age
VAGO
Victorian Auditor General’s Office
VCAA
Victorian Curriculum and Assessment Authority
VCAL
Victorian Certificate of Applied Learning
VCE
Victorian Certificate of Education
VEAC
Vocational Education and Assessment Centre
VET
Vocational Education and Training
Chisholm Institute
VLESC
Victorian Learning and Employment Skills Commission
(replaced by the Victorian Skills Commission)
VMIA
Victorian Managed Insurance Authority
VRQA
Victorian Registration and Qualifications Authority
VSC
Victorian Skills Commission
VTA
Victorian TAFE Association
VTAC
Victorian Tertiary Admissions Centre
WELL
Workplace English Language & Literacy
WNA
Withdrawn Never Attended
WRAPS
Wholesale, Retail and Personal Services
Annual Report 2011
145
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0003-0512
chisholm.edu.au