Department of Further Education,
Employment, Science and Technology
Annual Report
2013-14
www.statedevelopment.sa.gov.au
www.statedevelopment.sa.gov.au
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DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
The Department of Further Education, Employment, Science and Technology
ANNUAL REPORT 2013-14
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1 JULY 2013 - 30 JUNE 2014
For further copies and enquiries please contact
DEPARTMENT OF STATE DEVELOPMENT
OFFICE OF THE CHIEF EXECUTIVE
GPO Box 320
Adelaide, SA 5001
ABN: 16692317206
Telephone: +61 8 8226 3821
Facsimile: +61 8 8226 9533
The 2013-14 Annual Report is available on the department’s website at:
www.statedevelopment.sa.gov.au
ISSN1449-6437
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DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
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CONTENTS
01 CHIEF EXECUTIVE’S WELCOME
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02 HIGHLIGHTS FROM THE YEAR
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03 DEPARTMENT OF STATE DEVELOPMENT
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04 ABOUT THE DEPARTMENT
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4.1
Strategic directions
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4.2
Culture and values
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4.3
Strategic alignment
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05 PERFORMANCE SUMMARY
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5.1
Overview
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5.2
The South Australian VET system P 11
5.3
Workforce development • Skills
• Employment
• Higher education
• International education
• National partnerships
• Training and Skills Commission
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5.4
Industry transformation • Automotive transformation
• Industry growth and support
• Support for retrenched workers
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5.5
Science and Innovation
• STEM skills
• Science and research
• Digital productivity and technology
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06ABBREVIATIONS
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DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
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ANNUAL REPORT 2013-14
CONTENTS
07APPENDICES
P 35
7.1
Ministerial accountability
P 35
7.2
Legislation administered by the department P 35
7.3
Account payment performance P 36
7.4 Asbestos management in government buildings
P 36
7.5
Boards, committees and authorities
P 36
7.6
Consultants
P 37
7.7
Disability Action Plans
P 37
7.8
Financial overview P 38
7.9
Greening of government operations P 41
7.10
Management of human resources P 42
7.11
Managing risk and fraud
P 48
7.12
Overseas travel P 48
7.13
Reconciliation
P 48
7.14
Reporting against the Carers Recognition Act 2005
P 49
7.15
Reporting against the Whistleblowers Protection Act 1993
P 49
7.16
Urban Design Charter
P 50
7.17
VET student activity
P 50
7.18
Website listing
P 62
08 FINANCIAL STATEMENTS
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LIST OF FIGURES / LIST OF TABLES
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01
CHIEF EXECUTIVE'S
WELCOME
I am pleased to present the 2013-14 Annual Report for the Department
of Further Education, Employment, Science and Technology (DFEEST).
This is the final annual report for DFEEST, as from 1 July 2014 DFEEST merged with the Department for
Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) and other agencies to form the new
Department of State Development. This new department will bring together the key areas of economic
development in one agency to help drive the ongoing economic transformation of the economy.
This is also my final report as Chief Executive of DFEEST, a position I have been honoured to hold for the
past six years.
In this final report it is worthwhile to reflect on the significant achievements and changes the department
has led over the years.
The vocational education and training (VET) system in South Australia has undergone fundamental reform,
culminating in the introduction of Skills for All in 2012.
These reforms have seen South Australia move to a position where it is now leading Australia in vocational
training on many measures.
Since its introduction on 1 July 2012, Skills for All has achieved significant success in attracting South
Australians to training. In 2013, Skills for All funded 134 900 course enrolments, a 60 per cent increase on the
84 300 course enrolments in 2012. Most pleasing was that the majority of the enrolments (67 per cent) were
at the Certificate III level or higher, the levels most likely to lead to secure, well paid employment.
South Australia has gone from being one of the most costly jurisdictions for training, in terms of cost per hour,
to now being the most efficient in the country. There has been a 44 per cent reduction in the cost per hour of
publicly funded training since 2006.
The improvement in efficiency has meant that, for the same budget, in 2013 South Australia was able to
support an extra 60 000 students in training due solely to efficiencies.
The increase in training has aligned very closely to industry demand. This is largely as a result of both the
increased responsiveness of the VET sector today and ongoing management of the courses that are funded.
In 2013-14 we also saw ongoing measures to maintain the quality of training in South Australia with both
TAFE SA and private providers reporting student satisfaction of around 90 per cent, one of the highest levels
in the country.
While South Australia has traditionally lagged Australia in terms of the proportion of the population with post
school qualifications, Skills for All has significantly stimulated much needed improvements. VET participation
for the working age population has increased from 11.3 per cent in 2008 to an estimated 14.4 per cent in 2013.
The state now exceeds the nation for the first time in terms of VET participation.
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DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
01 CHIEF EXECUTIVE'S WELCOME
2014 also saw the completion of the $120 million Sustainable Industries Education Centre at Tonsley, and the
completion of the $38 million Mining and Engineering Centre at Regency Park. These two flagship projects
form part of the $240 million rejuvenation of TAFE SA facilities, the biggest investment ever in training
infrastructure in South Australia.
In 2014, the Investing in Science action plan was launched following collaboration with the Premier’s Science
and Industry Council. The action plan includes over 40 initiatives that, when fully implemented, will help
support science, technology, engineering and maths and the application of research and innovation to
support the transformation of South Australia’s economy into an advanced high value economy.
A further highlight of 2014 was the launch of the Adelaide Free Wi-Fi network with the Adelaide City Council.
Adelaide now has Australia’s biggest, free Wi-Fi network for outdoor areas providing free high speed Wi-Fi to
residents, workers, businesses and visitors to the city.
As well the formation of the new department, 2014 saw the appointment of the Hon Gail Gago MLC as the
Minister for Employment, Higher Education, Skills, Science and Information Economy.
I thank DFEEST staff for their dedication as public officials and hard work during this time and the leadership
and support of Minister Gago and of Grace Portolesi before her.
Raymond Garrand
Chief Executive
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02
HIGHLIGHTS FROM THE YEAR
VOCATIONAL EDUCATION AND TRAINING
• Increased the number of government funded VET students in South Australia by 22 per cent, from 123 300 in 2012 to an estimated
150 300 in 2013.
• In 2013 there were 134 900 Skills for All subsidised course enrolments, a 59 per cent (or 49 600 additional enrolments) increase on the
84 300 enrolments in 2012.
• S outh Australia had an estimated 15 700 apprentice and trainee commencements, and the highest number of completions on record
compared with 12 200 in 2013.
• Completed the Sustainable Industries Education Centre at Tonsley Park, and training delivery commenced in early 2014.
• O
pened the Mining, Engineering and Transport Centre at TAFE SA Regency Campus in August 2013, providing a state-of-the-art facility
hub for the training of mining, engineering, advanced manufacturing, defence and transport industries.
LEARNING, WORKFORCE PARTICIPATION AND WORKFORCE DEVELOPMENT
• Over
170 projects, totalling $9.5 million, were delivered across South Australia to assist more than 8000 people develop skills for local
jobs in metropolitan and non-metropolitan regions.
• A
ssisted 62 companies in critical industry sectors to access training and workforce development through the Skills in the
Workplace program.
• A
ssisted retrenched workers in 13 companies affected by economic restructuring including GM Holden, Carl Zeiss, Detmold Packaging,
Huon Aquaculture and McCain Foods in Mount Gambier to reskill and transition to new employment.
QUALITY ASSURANCE AND REGULATORY SERVICES
• Commenced
the independent validation of assessment project to verify that graduates from 14 Skills for All courses, selected on
the basis of risk, can apply their skills and knowledge in the workplace to industry standards.
• C
ompleted comprehensive reviews of 43 Skills for All training providers to assess compliance with quality training and
contractual obligations.
• P
rovided 32 professional development programs to 938 VET professionals and practitioners along with onsite customised
training support and professional development for staff in 35 registered training organisations attended by 213 participants.
• Introduced a web portal to the ATLAS data management system enabling employers, apprentices and trainees to transact
business online.
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DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
02 HIGHLIGHTS FROM THE YEAR
INTERNATIONAL AND HIGHER EDUCATION
• As at June 2014 there were 22 176 international student enrolments in South Australia.
• A
ssisted the state’s public universities win $9.1 million of competitive funding under the Australian Government’s Higher Education
Participation and Partnerships fund to support pathways to university for students from low socio-economic backgrounds.
SCIENCE AND INNOVATION
• Finalised the establishment of the Medical Research Commercialisation Fund in South Australia, committing $600 000 over four years.
• U
nder the Premier’s Science and Industry Fund, $3.7 million was awarded across three professorial fellowships, five International
Research Grants, six Collaboration Pathways Grants, eight Catalyst Research Grants and seven Innovation Vouchers.
• C
ommenced operation of the $4.15 million High Value Food Manufacturing Centre in November 2013, and in February 2014 launched
the Advanced Food Manufacturing grants program to support partnerships between food manufacturers and the South Australian
research sector.
• L aunched the Investing in Science Action Plan in January 2014, to focus investment to ensure continued economic development of the
state based on research, innovation and commercialisation.
INFORMATION ECONOMY
• In partnership with the Adelaide City Council, the AdelaideFree fast Wi-Fi service was deployed across the central business district for
residents, workers and visitors.
• In partnership with the University of South Australia, developed the Student Entrepreneur Initiative to support innovative students
translate ideas into business opportunities by encouraging collaboration between students and customers to create start-ups for the
commercialisation of products, services or processes.
• S upported over 200 small to medium enterprises (SMEs) in the Riverland and Murraylands to participate in the ebizSA program which
helps them to use digital technology to improve their competitiveness, streamline their business systems and identify new markets.
• A
ssisted 20 participants, supported by 13 industry mentors, to complete the MEGA Digital Entrepreneurship program for the digital
content and application industries.
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03
DEPARTMENT OF
STATE DEVELOPMENT
The South Australian Government has merged DFEEST, DMITRE, the Office of the Economic Development Board, Arts SA, Aboriginal
Affairs and Reconciliation, Invest SA, and Health Industry South Australia (HealthInSA) to become the Department of State Development.
The creation of the department on 1 July 2014 provides an opportunity to harness synergies around productivity, innovation, economic
development, employment, regional development and ensuring skills are closely aligned to the needs of industry.
The establishment of the Department of State Development allows for a more collaborative approach on a range of matters that were
previously the responsibility of DFEEST, DMITRE, the Department of the Premier and Cabinet and SA Health. These include:
• support for the automotive sector
• innovation and commercialisation initiatives
• science, technology, engineering and maths (STEM) skills
• skilled migration
• centres of excellence in resources and manufacturing
• the growing resources and energy portfolio
• advanced manufacturing, and
• investment attraction.
Aboriginal Affairs and Reconciliation will continue to be the South Australian Government's lead agency on Aboriginal affairs. The inclusion
of this division in the department will allow a greater focus on Aboriginal economic development. This will result in more skills
development, job creation, business development and sustainable employment for Aboriginal people.
The department will also recognise the important social and economic contribution of the Arts and will concentrate on innovation and
growth in the creative industries as well as high technology sectors including photonics and biotechnology. Expanding science and
research development will have a significant impact on economic growth in South Australia.
The Department of State Development will position South Australia to take advantage of our high growth, high-value sectors, including
mineral and resources, information and communications technology, defence, agriculture, advanced manufacturing and renewable
energy. The inclusion of HealthInSA allows the department to bring together the state’s cutting-edge, manufactured medical technologies
and capacity to advance health related capabilities and industries.
The Department of State Development will focus on innovation to assist the transition of manufacturing to high value-added activities
that compete on value for money, not solely on cost, for example. With funding from the Commonwealth Government’s Growth Fund,
the department will continue to implement the automotive transformation strategy for South Australia, as announced in the government’s
Our Jobs Plan initiatives.
Given responsibility for the state’s investment and trade, the department will work with industry to further trade and the internationalisation
of our economy. Synergies have been created through the inclusion of Invest SA.
The creation of the Department of State Development will better position South Australia to realise the potential of our natural and
economic assets. The department will have the capacity to expand beyond our state borders to seek investment partners in Asia, and
other growth-leading economies in our region. Expansion of the Olympic Dam Taskforce will facilitate the proposed expansion of the
Olympic Dam mine and provide BHP Billiton with a single entry point to government.
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DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
03 DEPARTMENT OF STATE DEVELOPMENT
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04
ABOUT THE DEPARTMENT
DFEEST was the South Australian Government’s key agency driving employment, skills development, research and technology in the
state, working collaboratively to meet specific targets in South Australia’s Strategic Plan (SASP) and developing the scientific, research and
innovative capacity of the state.
The department contributed to a strong and sustainable economic future for South Australia by:
• e nsuring employers and individuals had access to high quality training and education to develop the required skills for a
progressive economy
• coordinating skilling, employment and innovation responses to assist industry sectors experiencing structural change
• fostering innovation through science and research, and
• promoting and supporting digital and technology developments within business, industry and community sectors.
4.1 STRATEGIC DIRECTIONS
The department’s Strategic Directions 2013-2016 had three key priorities:
• providing opportunities for all to participate in learning and work
• meeting the skills needs of workers and employers, and
• boosting productivity through innovation and skills.
These priorities are critical to South Australia achieving the economic and social aspirations outlined in the 2013 Economic Statement and
are the core business of the department.
The Strategic Directions reflect the department’s strengths and outline where we can make a real difference - directly impacting the lives
of more than 400 000 South Australians and tens of thousands of businesses over the coming years.
Key to the department’s success was our commitment to collaboration and working with industry, the education sector, the community
and regions.
Underpinning our work was a shared commitment to our values and behaviours - a commitment to integrity, respect, responsiveness in
providing services, excellence, the courage to drive change and reform, and most importantly, being accountable for our performance.
OUR VISION
A skillful and productive population.
OUR MISSION
We help people build and enhance their skills and education, making South Australia a smarter and more innovative state.
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DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
04 ABOUT THE DEPARTMENT
OUR PRIORITIES AND OUTCOMES
Focusing on people and community
Focusing on industry and employers
Focusing on our economic future
Opportunities and participation in
learning and work
Meeting skills needs of workers and
employers
Productivity through innovation
and skills
Individuals have the opportunity to
engage and succeed in training, further
education and work
Employers have people with the right skills
at the right time
Science, technology and innovation is
targeted to support economic growth
and social development
4.2 CULTURE AND VALUES
The department’s Values and Behaviours Statement provided a platform on which to build a high performance culture. The statement
reflected the kind of organisation staff would like the department to be, and outlined and described an ethical organisation in which
practices and behaviours reward integrity and excellence, promote respect and responsiveness, and value courage and accountability.
The values were:
I
Commitment to integrity
C
Having the courage to drive change and reform, and be challenged
A
Being accountable for our performance and outcomes
R
Respect for each other and our community
R
Responsiveness in providing services and solutions
E
Striving for excellence in everything we do.
4.3 STRATEGIC ALIGNMENT
THE SOUTH AUSTRALIAN GOVERNMENT’S SEVEN STRATEGIC PRIORITIES
In 2012 the South Australian Government identified seven focus areas to enhance the long-term health and prosperity of the state. The
department’s work aligned to the following five areas:
• Creating a vibrant city
• Every chance for every child
• Growing advanced manufacturing
• Realising the benefits of the mining boom for all
• Premium food and wine from our clean environment.
The additional two priorities are:
• An affordable place to live
• Safe communities, healthy neighbourhoods.
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04 ABOUT THE DEPARTMENT
SOUTH AUSTRALIA’S STRATEGIC PLAN
The SASP guides individuals, community organisations, governments and business to secure the wellbeing of all South Australians over
the medium to long term. SASP contains our community’s vision and goals; its 100 measurable targets reflect our priorities.
DFEEST was the lead agency for 17 targets:
Table 1: Progress against SASP targets
Baseline
Recent data
Progress
T36 Labour productivity:
Exceed Australia’s average labour productivity growth rate through
to 2020.
0.0 pp1
(2002-03)
1.8 pp
above Aus
(2012-13)
On track
T47 Jobs:
Increase employment by two per cent each year from 2010 to 2016.
1.7%
(Jan 2010)
1.5%
(Apr 2014)
Negative
movement
T48 Ageing workforce participation:
Increase the proportion of older South Australians who are engaged in the
workforce, by 10 percentage points by 2020.
40.3%
(Jan 2010)
40.5%
(Apr 2014)
Negative
movement
T49 Unemployment:
Maintain, equal or lower than the Australian average through to 2020.
0.5 pp
above Aus
(Jan 2004)
0.7 pp
above Aus
(Apr 2014)
Negative
movement
T50 People with disability:
Increase by 10 per cent the number of people (aged 15 to 64) with a
disability employed in South Australia by 2020.
89 700
(2009)
86 700
(2012)
Negative
movement
T51 Aboriginal unemployment:
Halve the gap between Aboriginal and non-Aboriginal unemployment
rates by 2018, halving the gap in employment outcomes between
Indigenous and non-Indigenous Australians within a decade.
14.0 pp
gap (2008)
10.0 pp
gap (2011)
On track
T53 Aboriginal employees:
Increase the participation of Aboriginal people in the South Australian
public sector, spread across all classifications and agencies, to 2 per cent
by 2014 and maintain or better those levels through to 2020.
0.92%
(2003)
1.66%
(2013)
Little
movement
T54 Learning or earning:
Increase the proportion of 15 to 24 year olds engaged full-time in school,
post-school education, training or employment (or combination thereof)
to 85 per cent by 2020.
78.6%
(Jun 2003)
78.4%
(Apr 2014)
Little
movement
T55 Apprentices:
Increase the number of apprentice completions in trade occupations by
20 per cent by 2020.
0%
(2700)
(Dec 2009)
10.1%
(2974)
(Dec 2013)
On track
T57 Broadband access:
The proportion of South Australian premises with access to broadband
services delivered by fibre technology meets the national average by 2020.
0.11% - SA
1.3% - SA
0.14% - Aus
(2011)
2.7% - Aus
(May 2014)
Little
movement
24.2%
(2007-08)
32.0%
(2011-12)
T58 Online business:
Increase the proportion of businesses that receive online orders from
24 per cent to 40 per cent by 2014 and continue to grow each year.
1
PP = Percentage Point
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DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
On track
04 ABOUT THE DEPARTMENT
Table 1: Progress against SASP targets continued
Baseline
Recent data
Progress
13 737
(2003)
27 147
(Mar 2013)
Positive
movement
T91 Non-school qualifications:
By 2014, equal or better the national average for the proportion of the
labour force with non-school qualifications and maintain thereafter.
3.4 pp
below Aus
(2002)
2.5 pp
below Aus
(2013)
Positive
movement
T92 STEM qualifications:
Increase the number of domestic students completing undergraduate
tertiary qualifications in specified science, technology, engineering and
mathematics fields of education to 3600 students per annum by 2020.
3129
(2009)
3198
(2012)
Positive
movement
T93 Tertiary education and training:
Increase the proportion of South Australians aged 15 to 64 participating in
tertiary education and training to 17 per cent by 2016.
15.7%
(2009)
18%
(2012)
On track
T95 Industry collaboration, research and development
commercialisation:
Increase to $650 million total gross cumulative value of industry and other
funding for research earned by universities and state-based publicly
funded research institutions by 2020.
$100m
(2010)
$178m
cumulative
(2011)
On track
T96 Public research expenditure:
Public expenditure on research and development, as a proportion of gross
state product (GSP), to be maintained at 1.2 per cent to 2020.
1.2%
(2008-09)
No new data
Baseline only
T97 University research income:
Increase the total gross value of university research income to 20 per cent
above South Australia's per capita share by 2014 and maintain thereafter
(2008 baseline).
17.7%
above SA
per capita share
(2008)
19.6%
above SA
per capita share
(2012)
On track
T90 Share of overseas students:
Increase the number of overseas students across all education and training
sectors from 13 737 in 2003 to 45 000 by 2014 and continue growth each
year through to 2020.
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05
5.1 PERFORMANCE SUMMARY
OVERVIEW
As mentioned in section 4.1, the department's Strategic Directions commit the agency to addressing economic and social barriers for
students and industry and underpin improvements to social and economic prosperity into the future, through providing opportunities
and pathways to higher level skills and industry investment to improve productivity. Further, the department’s STEM Skills Strategy
addresses the growing demand from local industries such as mining and defence for skilled workers in science, technology and engineering.
Skills and innovation are central to increasing participation and productivity and realising the state’s potential and future prosperity,
supported through partnerships with industry.
Research and development is one of the major drivers for economic growth and innovation and provides solutions to deal with emerging
industrial, social, health, security and environmental challenges. Bringing together skill development and science and technology into one
portfolio enhances opportunities, both for individuals and the future of the state’s economy.
The Training and Skills Commission (TaSC) predicts increasing demand for higher level qualifications over the period 2011-12 to 2016-17,
with around 10 per cent of this demand relating to occupations requiring significant STEM capability. International evidence indicates the
demand for jobs requiring STEM skills is growing at twice the rate of non-STEM jobs.
South Australia’s ageing population also emphasises the importance to our economy of addressing labour productivity and participation
rates. Increasing the skills of workers is critical to our future economic growth and social wellbeing. Research shows that people with a
Certificate III or higher have substantially lower unemployment rates and increased earning capacity.
Therefore, it is important to target public funding to assist the most disadvantaged into work and meet the critical skill needs of industry.
5.2 THE SOUTH AUSTRALIAN VET SYSTEM
DFEEST has responsibility for policy, funding and operation of the state’s VET system as a whole.
There are currently 165 700 students in the South Australian VET sector, an increase of 16.3 per cent or 23 200 extra students on 2012.
In 2013 South Australia led the nation in enrolment growth in qualifications, with 23 per cent growth compared to a three per cent fall
nationally. South Australia’s growth in enrolments was the highest in the nation in 2013.
An estimated one in seven South Australians in the 15 to 64 age group are undertaking VET, above the national average.
Along with this there were 34 200 trainees and apprentices employed under a training contract in South Australia in December 2013.
In South Australia there were 44.1 million hours of VET delivered to students in 2013, an increase of 24.7 per cent or 8.7 million extra hours
on 2012. South Australia was the only jurisdiction to record an increase in 2013, while the number of hours fell nationally by 2.7 per cent.
In 2013 Skills for All funded 134 900 qualification enrolments, including over 4000 school enrolled students undertaking VET as part of their
South Australian Certificate of Education (SACE).
Under Skills for All, course enrolments increased for disadvantaged groups. When comparing 2013 with 2012, enrolments for:
• mature aged (55 and over) increased by 159 per cent
• Aboriginal students increased by 69 per cent
• female students increased by 69 per cent
• people with a disability increased by 58 per cent
• low socio-economic background people increased by 60 per cent, and
• young people in the age group 15 to 24 years increased by 38 per cent.
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DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
05 PERFORMANCE SUMMARY
In addition, over 1000 participants undertook accredited training through Adult Community Education (ACE) programs.
In South Australia there were 43 900 qualifications completed in 20121. This was an increase of 22.9 per cent or 8200 extra completions on
2011, the second-highest growth rate in the nation. Nationally, the number of qualification completions increased by 12.3 per cent.
TAFE SA is the major public training provider and has responsibility for service delivery in accordance with its Charter and the policy
objectives of the government. Over 50 per cent of South Australian VET students were enrolled at TAFE SA.
3.4
%
39.9%
56.7%
TAFE & other government 56.7%
Private/Non-TAFE SA providers 39.9%
Community education 3.4%
Figure 1: South Australian VET students by provider type, 2013
Source: NCVER, Australian vocational education and training statistics: Students and Courses 2013
DFEEST also manages VET infrastructure on behalf of the Minister for Employment, Higher Education and Skills, as a whole of public VET
system asset base, and also, as delegate of the TaSC, has responsibility for the regulation of apprentices and trainees across the state.
5.3 WORKFORCE DEVELOPMENT
SKILLS
SKILLS FOR ALL
Skills for All is a South Australian Government initiative that has transformed the state’s VET system in order to:
• increase the skills and qualification levels of the workforce
• increase the number of South Australians with post-school qualifications, and
• increase employment participation rates, i.e. the available supply of labour to employers.
Skills for All strives to ensure the VET system is closely aligned to strategic industry demand and that public investment is targeted to skill
development of greatest benefit to all South Australians.
Skills for All offers eligible South Australians aged 16 years and above government funded training to meet individual vocational training
needs and industry demand. South Australians have the opportunity to gain government subsidised qualifications in areas linked to
employment, many at low or no cost, through the Skills for All training provider of their choice.
Building on its initial success, government investment in training through Skills for All continues to focus on meeting the strategic skill
needs of industry and priority is given to sustainable, targeted investment in areas of strategic priority.
Enrolments
Since its introduction, Skills for All has achieved significant success in attracting South Australians to training. Final qualification data
indicates that, in 2013, Skills for All funded 134 900 course enrolments, a 60 per cent increase on the 84 300 course enrolments in 20122,
representing an additional 50 600 enrolments. Figures for the same period highlight that in 2013 the number of Skills for All funded
qualifications issued (completions) increased by 80 per cent to 41 100 to deliver an additional 18 200 issued qualifications.
1
NCVER collects the number of completions for a full year over a two year period and this leads to a lag (of one year) in reporting the data.
In this enrolment context, Skills for All excludes Skills for Jobs in Regions, specific Aboriginal and foundation skills funding, Productivity Places
Program, Skills in the Workplace, and other Australian Government specific funding.
2 P 12
05 PERFORMANCE SUMMARY
The majority of qualification enrolments, 67 per cent, were at the Certificate III level and above while Certificate I and II entry pathways also
experienced strong growth with many first time entrants to the training system taking the opportunity to get a qualification.
Figure 2 shows the percentage increase in enrolments across qualifications for 2013, and the increase in enrolments for the period of
TAFE SA and private training providers.
140%
120%
100%
80%
60%
40%
20%
en
ts
Pr
iv
at
e/
No
Al
lE
nr
ol
m
A
ES
A
ES
nTA
F
om
pl
Di
TA
F
pr
ov
i
de
rs
Ab
ov
e
aa
nd
III
a
ica
te
s
tif
Ce
r
Ce
r
tif
ica
te
s
Ia
nd
nd
IV
II
0%
Figure 2: Skills for All, changes in course enrolments, 2013
Source: DFEEST, data extracted from SIS and STELA on 1 April 2014
Skills for All training aligned to industry
The increase in VET has aligned closely to the needs of industry as forecast by the TaSC. Figure 3 shows the alignment of government
investment to projected industry demand for qualifications.
21%
18%
15%
12%
9%
6%
2013 Skills for All Enrolments
3%
Industry Demand for
VET Qualifications Five Years to 2015-16
&
lth
W
ho
He
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0%
Figure 3: Distribution of projected industry demand for VET qualifications and Skills for All enrolments in 2013 across
TaSC occupation groups
Source: DFEEST, TaSC Five Year Plan 2012
Note: Chart contains enrolments that could be allocated by TaSC Occupation Group.
P 13
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
05 PERFORMANCE SUMMARY
Career information and development services
Information services are integral to informed choices under Skills for All. Services were delivered online, by telephone and face-to-face.
Information services provided a personalised response to over 40 000 telephone and email enquiries, and 6000 people visited
the Infocentre. The Skills for All website provided access to comprehensive information on careers, the labour market and training
opportunities.
Table 2: Website service activity, 1 July 2013 to 31 May 2014
Skills for All website
Skills for All mobile-friendly website
Visitors
Pageviews
New visitors
Returning
visitor
479 593
2 322 010
52%
48%
21 176
183 351
58.1%
41.9%
4 224
12 697
46.1%
53.9%
504 993
2 518 058
Skills for All/DFEEST eNewsletter website
Total
COST OF TRAINING DELIVERY
Increasing contestability in the VET system, culminating in the introduction of Skills for All, has significantly increased the efficiency of the
training system. The most recent data available shows that by 2012 the cost of VET delivery in South Australia has improved from one of
the highest in the nation to the lowest, while maintaining the quality of the system.
Data used to measure efficiency is ‘government recurrent expenditure per annual hour’. Factors that impact on improving efficiencies
include training costs such as teacher salaries, length of training programs, differences across jurisdictions such as scale of service delivery,
and VET policies and practices.
$35.00
$30.00
$25.00
NSW
Vic
$20.00
Qld
$15.00
NSW
VIC
QLD
WA
SA
TAS
ACT
NT
AUST (AVERAGE)
NSW
VIC
QLD
WA
SA
TAS
ACT
NT
AUST (AVERAGE)
NSW
VIC
QLD
WA
SA
TAS
ACT
NT
AUST (AVERAGE)
$0.00
NSW
VIC
QLD
WA
SA
TAS
ACT
NT
AUST (AVERAGE)
$5.00
SA
NSW
VIC
QLD
WA
SA
TAS
ACT
NT
AUST (AVERAGE)
$10.00
WA
2008
2009
2010
2011
2012
Tas
ACT
NT
Aust (average)
Figure 4: VET system efficiency
Source: (2014) Steering Committee for the Review of Government Service Provision, Report on Government Services 2014
P 14
05 PERFORMANCE SUMMARY
This significant improvement in efficiency meant it was possible to support in the order of 70 000 additional students in 2013.
The comparison between actual student numbers and the hypothetised number that would have been funded if the 2003 efficiency
levels had continued over the past decade is shown in Figure 5.
160,000
140,000
120,000
100,000
80,000
Actual Student Numbers
Student Numbers at 2003
Cost per Hour
60,000
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Figure 5: Impact of efficiency improvement on VET student numbers
Source: (2014) Steering Committee for the Review of Government Service Provision, Report on Government Services 2014 & NCVER, Students and
Courses 2013
QUALITY TRAINING PROVIDERS
There are 209 training providers contracted and operating in South Australia under Skills for All (including TAFE SA and seven government
departments). Terms of contracts are one to five years, with the majority holding a three year contract.
As at 31 May 2014, a total of 211 499 training accounts had been created. Of these:
• 28 per cent resulted in completions
• 59 per cent are still current, and
• 13 per cent had been terminated.
Of the total active training accounts created 59 per cent were by TAFE SA and 41 per cent by private training providers.
Maintaining the quality of training providers
The Quality Assurance and Compliance Framework was established to monitor and assure training funded through Skills for All is of the
highest caliber. The following quality assurance activities occurred during 2013-14 to monitor the outcomes of funded training:
• p
erformance monitoring of Skills for All training providers nearing the completion of their initial Skills for All contract; 58 scheduled and
12 ‘off-cycle’ performance reviews were conducted
• real-time monitoring of Skills for All training providers claim data resulted in 63 formal contract notices being issued
• independent validation of assessment, and
• student surveys.
OTHER KEY TRAINING ELEMENTS
Adult Community Education
The Adult Community Education (ACE) program is the community learning gateway for people to develop literacy, numeracy, digital
literacy and employability skills. ACE provides learning programs in a supportive community setting and delivers accredited training and
non-accredited learning programs for working-age adults (17 years and over) through not-for-profit community-based organisations. The
program improves the foundation skills of South Australians facing barriers to learning and provides further training and work pathways.
The application of the Australian Core Skills Framework and the annual agreement with community centres ensures the consistency and
quality of ACE delivery across the state.
The state government committed $11.7 million from 2010 to 2016 to ACE. In 2013-14, the department funded 78 community centres across
the state to deliver accredited training to over 1000 people, and non-accredited training which supported 13 500 enrolments. In addition,
a workforce and professional development program for 450 community centre staff and volunteers was delivered by Community Centres SA.
P 15
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
05 PERFORMANCE SUMMARY
Building Family Opportunities
The Building Family Opportunities (BFO) program breaks the cycle of long term and intergenerational family joblessness. The program
provides professional and practical whole-of-life services that enable members of jobless families to reach their full educational and
employment potential.
Jobless households suffer higher rates of poverty when compared to working households. Households where no parent is employed, be
it single parent or couple parent families, have lower levels of income when compared to single parent or couple parent working families.
The BFO demonstration program ($9.6 million from 2010 to 2014) assisted over 600 jobless families and 1800 individuals; 32 per cent were
Aboriginal families. 395 employment outcomes and 713 training outcomes were achieved. An extensive Flinders University evaluation
concluded that BFO is creating change where other agencies have been unsuccessful in the past, because:
• the whole family is assisted through a strengths-based, intensive family case management approach
• a ‘life-first’ approach is adopted - all non-vocational and vocational issues are dealt with
• a culture of non-dependence is built within the family
• motivational goal setting is central to interventions
• locally sourced and locally delivered training and job opportunities are provided
• participants are followed up during the early stages of employment, and
• a coordinated, multiple cross agency involvement is a feature of the program.
An additional $2 million was allocated in 2013-14 through the government’s Jobs and Skills Policy to assist 350 families living in the
City of Playford.
A more intense approach with Aboriginal families has led to the delivery of a specific BFO for Aboriginal families who have been identified
by the South Australian Police as being ‘on the cusp’ of offending. These families face even more significant barriers to getting a job. While
supporting participant families to engage in learning, training and work, this program is also helping reduce contact with the criminal
justice system.
By focusing on increasing the social and economic participation of jobless families, the government is investing in reducing the
intergenerational transmission of disadvantage, social exclusion and joblessness.
Aboriginal training and employment
The department is committed to halving the gap in employment outcomes between Aboriginal and non-Aboriginal people by 2018.
To achieve this, the department is connecting students, employers and work-ready Aboriginal job seekers through a suite of initiatives.
These initiatives ensure that Aboriginal job seekers have the breadth of employability skills needed to be competitive across a range of
industries while at the same time provide employers with work-ready Aboriginal people. Over 3000 Aboriginal people participated in
these initiatives, with 870 gaining a job.
One of the initiatives, the Aboriginal Employment Industry Cluster, builds the capacity of employers to increase and sustain the
employment of Aboriginal people through seven Industry Clusters, each led by a senior industry champion. This initiative was extended
to schools, with 230 Aboriginal students and job seekers visiting 30 cluster employers for career advice and hands on work experience.
Aboriginal Engagement Coordinators have a visible presence, on the ground, in regions and in local communities where high numbers of
Aboriginal people are not participating in learning, training or work. The coordinators facilitate solutions to local training and employment
needs, in particular, preparing Aboriginal people for local jobs identified by employers.
Skills for All supported 3200 course enrolments by Aboriginal students in 2013, an increase of 69 per cent (or 1300 additional enrolments)
when compared to 2012.
The department also provided $2.22 million to the Tauondi Aboriginal College to provide training in a variety of qualifications to over
1000 Aboriginal students. Tauondi, a registered training organisation owned and run by the Aboriginal community, delivers education and
training to Aboriginal people who face barriers to learning, training and work.
Training completion rates of Tauondi students are above the 25 per cent national average for all VET students. 37 per cent of students
enrolled in a full qualification in 2013-14 completed the qualification and 75 per cent of those enrolled in skill set training completed their
course.
Through the Council of Australian Governments’ (COAG) National Agreement on Remote Indigenous Public Internet Access (2009-13),
Indigenous people in the APY Lands were provided with improved community-based telecommunications, free internet access and
digital literacy training in computer and internet use.
P 16
05 PERFORMANCE SUMMARY
Support for school students
Through Skills for All, school students can start a vocational pathway as a fully integrated part of their senior secondary education and have
it count towards their SACE and a VET qualification.
Skills for All assists school students to invest in their futures and the state’s future skilled workforce in three ways:
• school based apprenticeships
• Innovative Community Action Networks (ICAN), and
• Training Guarantee for SACE Students (TGSS).
As at 31 May 2014, Skills for All had funded more than 4300 school enrolled students to start vocational courses as part of their senior
secondary education. These students enrolled in 4884 separate courses, of which:
• 1152 courses were under the school based apprentices/trainees scheme
• 215 courses were enrolled through the ICAN scheme
• 3 517 students enrolled in the TGSS scheme in over 80 different qualifications including engineering, construction, children’s services
and aged care, and
• 425 students completed the qualification while at school, although students generally complete their pathway post school.
Traineeships and Apprenticeships
South Australia continued to have significant numbers of apprentices and trainees in 2013, with an estimated 34 200 apprentices and
trainees in training as at 31 December 2013. While the numbers have slightly fallen from their 2012 peak, the long term trend still
demonstrates growth in the system. In 2002, there were 29 500 apprentices and trainees in training, and in 2009 there were 30 200 apprentices
and trainees in training.
There were approximately 15 700 apprentice and trainee commencements in South Australia in 2013, including 5600 apprentice
commencements (35.6 per cent) and approximately 5400 female apprentice and trainee commencements.
There were approximately 12 200 apprentice and trainee completions in South Australia in 2013, including 3600 apprentice completions
(29.5 per cent).
The five most popular qualifications undertaken through apprenticeship pathways are:
• Certificate III in Electrotechnology Electrician
• Certificate III in Carpentry
• Certificate III in Automotive Mechanical Technology
• Certificate III in Hairdressing, and
• Certificate III in Engineering – Fabrication Trade.
The five most popular qualifications undertaken through traineeship pathways are:
• Certificate III in Driving Operations
• Certificate III in Retail Operations
• Certificate III in Process Manufacturing
• Certificate II in Meat Processing (Abattoirs), and
• Certificate III in Business.
The Traineeship and Apprenticeship Services Information Service received:
• 25 115 calls to the Infoline, and
• 3421 emails to the Information Service.
Support to trainees and apprentices
The Critical Skills Fund provides a more targeted approach to addressing the skills needs of the state than the previous payroll tax
exemption scheme. The fund provides a completion bonus of up to $4000 to enterprises that employ apprentices and trainees who
complete a qualification on the Critical Skills List. As at 25 June 2014, in 2013-14 637 employers claimed a total of 998 bonus payments,
which were worth approximately $4 million.
P 17
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
05 PERFORMANCE SUMMARY
The travel and accommodation allowance is the state government’s contribution towards an apprentice or trainee’s travel and
accommodation costs incurred while attending off-the-job training. As at 25 June 2014, in 2013-14 approximately $1.2 million in funding
was provided to 939 apprentices and trainees to assist them in meeting their travel costs when attending training.
Workforce Participation in Government Construction Procurement Policy
The Workforce Participation in Government Public Procurement Policy ensures that 15 per cent of the onsite labour hours of state
government contracts over $5 million are undertaken by apprentices, trainees, Aboriginal people, local people with barriers to
employment, and through up-skilling of the existing workforce. The policy has recently been expanded under the Our Jobs Plan to
include a new target group – displaced automotive workers - and a 20 per cent compliance for major projects over $100 million.
The Department of Planning, Transport and Infrastructure (DPTI) is responsible for implementation of the policy, including all recording of
compliance data and contractor targets. DFEEST plays a major support role in assisting contractors to meet their compliance obligations.
There are a number of direct program measures, delivered through a case management approach, including Skills for Jobs in Regions,
Aboriginal programs and upskilling through the Skills in the Workplace.
A review of the policy is to occur in the first half of 2016. An area under consideration is whether long term major service and maintenance
contracts should also be captured by this policy. DFEEST will continue to work with DPTI to ensure ongoing success of the initiative.
EMPLOYMENT
TRAINING AND WORKFORCE DEVELOPMENT
Workforce Development Program
The Workforce Development Program is a co-investment program which enables companies and businesses (through a sector approach)
to assess and articulate their skill needs, undertake gap analysis and map strategies for training need. These sector-wide projects aim to
develop high performance workplaces, support coordinated workforce planning and address workforce issues that are restricting growth
and/or service provision.
As at 30 June 2014, $2.22 million had been allocated since its inception, with complementary industry investment of $3.68 million. Of this
total allocation $0.60 million (26.88 per cent) was allocated to initiatives in regional South Australia.
In many instances the program informed and provided evidence of the need to support applications under the Skills in the Workplace
program.
Skills in the Workplace
The Skills in the Workplace program, an initiative of Skills for All, has offered employers in key industry sectors the opportunity to partner
with the government by co-investing in training for existing workers.
The program targets investment in skills that are critical to company productivity, competitiveness and innovation in developing higher
value products and services for domestic and international markets. In 2013-14 the program changed its focus to target advanced
manufacturing, which includes manufacturing, defence, automotive, food processing and production, and mining resources and energy
industries.
As at 30 June 2014, the department had committed more than $6.85 million since the introduction of the program in 2012 to support
South Australian employers and enterprises to gain 1674 qualifications and more than 1054 skill sets, and had attracted industry
co-investment of $1.88 million.
The allocation of funding under the program concluded in January 2014. However, the program will continue to be active with substantial
training occurring until 31 May 2016 to meet the commitment to students to complete their training.
Industry and Indigenous Skills Centres
The Australian Government provides capital funding to industry and/or community organisations, or Indigenous industry and/or
community organisations to refurbish or build training facilities that deliver or enable the delivery of VET.
During 2013-14, the department managed nine Industry and Indigenous Skills Centres (IISC) contracts on behalf of the Australian
Government.
All projects managed by the department, with the exception of one in the APY Lands, have been finalised. This is the final project for the
IISC program.
Since 2005, the state government has managed 39 projects providing $17.88 million in funding support to proponents of the IISC program.
P 18
05 PERFORMANCE SUMMARY
SKILLS FOR JOBS IN REGIONS
The department, through the Skills for Jobs in Regions program, contributed to regional employment growth by working with regional
employers and industry to fill jobs with local, work-ready job seekers. The program enabled South Australians to experience the economic
and social benefits, security and dignity that come with a job, and employers to have people with the right skills at the right time.
Local, tailored projects developed the vocational and employability skills of job seekers to access local jobs.
$9.5 million assisted nearly 10 000 people through the program, which provided foundation skills, training, case management, mentoring,
employability skills and supported work experience to help individuals transition to work. Projects focused on people with low levels of
educational attainment, unemployed people, and those not in the labour force. Over 3600 people gained a job.
South Australia has been nationally acknowledged as having the most extensive and robust regional program of all jurisdictions and is
applauded for having a significant approach to regional workforce development. This is because:
• strong regional, industry and community engagement underpin the regional approach
• support for decision-making in local communities is at the core of the program
• shared regional, government and industry priorities are being achieved, and
• a culture of ownership and solution brokering has been built at a local level.
The program has an extensive reach with over 150 projects delivered across the state each year, with Regional Managers and Aboriginal
Engagement Coordinators based in regional areas to support and facilitate this work.
Skills for Jobs Regional Networks and Industry Leaders Groups
Seventeen long standing and mature Regional Networks are located across South Australia. Network members have local knowledge of
workforce development priorities and a commitment to work together to lead local workforce development solutions. These networks
bring together service providers from government and the community sector to act on the unique employment challenges and
opportunities of their region. Over 1500 service providers across the state participate in these networks.
In addition, 15 Regional Industry Leaders Groups were established to provide valuable information on specific regional issues, feedback on
government policies and programs, and proactively implement employer-led initiatives at a local level.
Career services
A network of 13 regional and metropolitan career service providers work locally with job seekers who face barriers to employment,
retrenched workers and workers who need support to transition to training or other jobs if they are facing job loss. Experienced and
qualified practitioners use their knowledge of local labour markets to provide guidance and support to people looking to manage or
improve their careers, as well as one-on-one support to connect with learning, training and work opportunities.
SKILLED MIGRATION
Newly arrived skilled migrants have been assisted with information about qualifications and skills recognition, local occupational
registration and licencing, finding work in the local labour market and upskilling opportunities through Skills for All. These services
supported the attraction and retention objectives of the state’s immigration and population policy and program. Skilled migrants living
in regional South Australia were supported in collaboration with Multicultural SA and regionally based career services.
The department supported 983 individuals with job readiness and/or interview skills preparation, and a further 275 people through trades
recognition and licensing pathways. 655 individuals facing significant barriers received one on one intensive support, resulting in 223
employment outcomes. 1200 comparative assessments of overseas gained qualifications were undertaken.
HIGHER EDUCATION
Collectively, the three public universities and Torrens University Australia are a critical part of the state’s economic performance. This
includes the quality of their graduate output, community engagement, direct connection to state key economic interests through their
research and commercialisation activities, and their central role in education of international students.
Torrens University Australia, as a private Australian university and a member of the Laureate International higher education network, was
registered as an Australian University with the national regulator, the Tertiary Education and Quality Standards Agency, in July 2012 and
commenced enrolments in 2014.
Through students, faculty and research, the universities also have extensive and mature international links with countries in Asia, the
European Union, the United States of America and Canada. Inbound investment by way of partnering and investment in research centres
is growing.
P 19
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
05 PERFORMANCE SUMMARY
MINISTERIAL RESPONSIBILITIES
The Minister for Employment, Higher Education and Skills has responsibility for leading the state government’s relationship with higher
education providers. The Minister is also responsible for the legislation for the three public universities and Torrens University Australia.
The Minister and the Premier meet regularly with the Vice Chancellors, individually and through the South Australian Vice Chancellors’
Committee to discuss matters of mutual interest and importance to the state.
The department supports the Minister by providing important policy and program support to ensure sustainable growth in the state’s
tertiary education system, particularly in areas of strategic importance to the state.
ENROLMENTS
In 20123, 62 726 domestic students were enrolled in higher education studies in South Australia. Of these:
• 73 per cent of all domestic students were undertaking a Bachelor degree, and over 10 per cent a Master’s degree
• 1.2 per cent were Aboriginal
• 19.5 per cent came from low socio-economic backgrounds
• 59 per cent were female, and
• 16 per cent were from regional and remote areas.
30,000
25,000
20,000
15,000
2008
10,000
2009
2010
Flinders University
The University of Adelaide
2012
2011
2010
2009
2008
2012
2011
2010
2009
2008
2012
2011
2010
2009
0
2008
5,000
2011
2012
University of
South Australia
Figure 6: Domestic enrolments for South Australian universities, 2008 - 2012
Source: Higher Education Statistics, Department of Education, Canberra, 2012
By way of relativities, there are more South Australians enrolled in the vocational education sector than in higher education, and TAFE SA
alone has roughly the same number of students as all South Australian universities combined.
NATIONAL GRANT FOR SOUTH AUSTRALIAN UNIVERSITIES
In 2013-14 the three public South Australian universities were awarded $9.24 million under the Australian Government’s Higher Education
Participation and Partnerships Program (HEPPP). The funds will support a range of activities that improve access to university for people
from disadvantaged backgrounds. The funding was the largest grant awarded to a university group from the $50 million national
funding pool.
The universities formed a consortium under the auspices of the South Australian Vice Chancellors' Committee which was actively
supported by DFEEST and the Department of Education and Child Development (DECD). The consortium will operate through three
key themes (Aspire, Support and Achieve) with HEPPP monies funding partnership activities with schools, families and communities.
These activities build on the strengths and successes of each university’s outreach to provide a full suite of statewide programs aimed at
engaging and supporting students throughout their school life and beyond.
3
This is the most recent dataset available.
P 20
05 PERFORMANCE SUMMARY
NATIONAL REVIEWS
The department actively contributes to Australian Government reviews into higher education and in 2013-14 made a substantial
submission to the review of the higher education demand driven funding system. The submission supported retaining a demand driven
system for Bachelor level qualifications and recommended increasing flexibility at the postgraduate level to increase the number of
Australian Government-supported places in programs that provide pathways to professions.
TEACHER TRAINING QUALIFICATIONS
The department is leading the component of the state government’s High Quality Education Policy that looks at the requirement for all
new teachers to have a postgraduate qualification by 2020. South Australian universities will work with the state government to facilitate
models of initial teacher education training programs to replace current Bachelor level qualifications for initial teacher registration in
South Australian public schools.
EQUITY SCHOLARSHIPS
Through the provision of a number of scholarships, the department continued to support the government’s equity and access policies
which aim to give every member of the community the opportunity to participate in learning.
Terry Roberts Memorial Scholarship
The 8th Terry Roberts Memorial Scholarship was awarded to a student studying a Bachelor of Behavioural Science (Psychology) at Flinders
University. The Indigenous scholarship was established in 2007 with recipients receiving $2000 annually, up to a maximum of four years,
and assists with study and living expenses.
Sir Charles Bright Scholarship
The department sponsored two $1000 Sir Charles Bright Scholarships in 2013-14. The scholarships were awarded to disabled persons
undertaking post-secondary studies in Event Management (TAFE SA) and a double degree Bachelor of Law (Legal Practice) and Bachelor
of International Studies (Flinders University).
Sir Eric Neal Scholarship
In conjunction with Flinders University, the department awarded a single Sir Eric Neal Scholarship to a rural undergraduate student undertaking
an engineering degree at Flinders University. The scholarship is awarded annually to the value of $2500 per year for up to four years.
INTERNATIONAL UNIVERSITIES
Two private international universities currently operate in South Australia - Carnegie Mellon University and University College London.
The department manages the campus contracts.
These universities provide benefits to the state through their international outreach, enhancing South Australia’s reputation, and providing
specialist qualifications from internationally ‘high ranking’ universities. The combination of an international degree and studying in
Australia provides students with a unique skill set and international perspective, and enhances graduates’ employability.
Working links have been established between the international and state universities: University College London and the University of
South Australia have collaborated on a joint Graduate Certificate in Energy and Resources, while Carnegie Mellon University and Flinders
University have joint teaching programs in public policy.
INTERNATIONAL EDUCATION
The department contributes to high-level international education policy support at the state and national level through its membership
on the Joint Committee on International Education and the Education Visa Consultative Committee, and through working closely with the
state’s international education sector to provide advice on a range of policy matters.
The department provides strategic policy and program support and advice around the state’s international education sector, including
market analysis.
P 21
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
05 PERFORMANCE SUMMARY
ECONOMIC AND SOCIAL CONTRIBUTION OF THE INTERNATIONAL EDUCATION SECTOR
International education continues to make a significant contribution to South Australia’s economy. It is the state’s largest service sector
export and the sixth largest overall export, with an export value of $924 million in 2013. For every 1000 international students, the increase
to the state’s income is more than $2.4 million (Australian Institute for Social Research, 2009). The multiplier effects of international
education include the creation of more than 7400 local jobs and a travel spend of more than $18 million per annum by students, their
friends and families.
In addition to the economic benefits, international students contribute to improving the state’s inter-cultural relationships and therefore its
research, social, political, trade and diplomatic capabilities, and add to the cultural diversity and character of Adelaide as a vibrant city.
INTERNATIONAL STUDENTS
Adelaide continues to attract international students and in 2013 more than 27 000 international students chose Adelaide as their
study destination.
Between 2009 and 2012 the international education sector experienced a significant decline in international student numbers, due in part
to Australian Government changes to student visa and migration policy, the global financial crisis, a high Australian dollar and increased
activity of competitor countries in Australia’s traditional markets.
The more recent introduction of streamlined visa processing arrangements for universities and for other low risk non-university providers
has positively impacted on the sector with signs of a modest return to growth in 2014, particularly in the Higher Education and English
Language Intensive Courses for Overseas Students (ELICOS) sectors.
The Australian Government has also indicated its intent to develop a national industry strategy to grow the sector and support migration
by students to Australia.
Between now and 2020, global demand for education services is expected to grow by seven per cent per annum4, representing a
significant opportunity for industry growth in South Australia. Enrolment trends also show that, even in the absence of this growth, there
is capacity for South Australia to increase its share of the national market, particularly in the ELICOS and VET sectors.
Table 3: Enrolment trends by sector, 2009 to 2013 (full year)
Sector
2009
2010
2011
2012
2013
SA Share of
National Market
2013
14 808
15 667
15 671
14 686
14 028
6.1%
VET
7 651
8 582
7 303
5 584
5 069
3.8%
Schools
2 742
2 479
2 118
1 793
1 828
10.3%
ELICOS
5 926
5 099
3 933
3 522
3 868
3.4%
"Other"
2 279
1 972
1 655
1 566
1 919
6.9%
33 406
33 799
30 680
27 151
26 712
5.1%
Higher Education
Total
Source: Australian Education International, full-year student enrolment data – online detailed pivot table April 2014
Deloitte, Positioning for Prosperity, International Education 2013.
4
P 22
05 PERFORMANCE SUMMARY
In terms of source countries, China continues to provide the largest number of international students in South Australia making up
42.2 per cent, followed by India (11.7 per cent) and Malaysia (7.5 per cent). The fastest growing source countries (off a very low base) are
Brazil and the Philippines.
Table 4: Enrolment trends by Country, 2012 to 2013 (full year)
Nationality
2012
2013
2013 Share
of SA Total
Growth
2012-13
SA Share of
National Market
2013
China
11 533
11 265
42.2%
-2.3%
7.5%
India
3 490
3 135
11.7%
-10.2%
6.4%
Malaysia
2 059
2 001
7.5%
-2.8%
9.5%
Vietnam
1 151
1 205
4.5%
4.7%
4.6%
Saudi Arabia
1 047
1 136
4.3%
8.5%
11.0%
Korea, Republic of (South)
1 133
942
3.5%
-16.9%
3.4%
Brazil
147
580
2.2%
294.6%
3.3%
Singapore
494
516
1.9%
4.5%
5.9%
Philippines
358
513
1.9%
43.3%
5.8%
Japan
468
471
1.8%
0.6%
4.1%
5 271
4 948
18.5%
-6.1%
2.5%
27 151
26 712
100.0%
-1.6%
5.1%
All other countries
Total
Source: Australian Education International, International Student Data – online detailed pivot table April 2014
EDUCATION ADELAIDE
Education Adelaide’s role is to promote South Australia an international education destination. It is jointly funded by the South Australian
Government, the Adelaide City Council and South Australia’s three public universities. The financial contribution is 60 per cent from the
state government and 40 per cent from other key partners.
Following a decision in 2013 not to fund Education Adelaide from 2015-16, an independent study was completed which examined future
models through which education providers, Education Adelaide, the state government and the Adelaide City Council can support the
international education market in South Australia into the future. An outcome of this review was a decision to continue funding Education
Adelaide from 2015-16 for $900 000, provided that the contribution of the other key partners continues.
AUSTRAINING INTERNATIONAL
Austraining International Pty Ltd, established in 1991, is wholly owned by the state government, with the Minister for Employment, Higher
Education and Skills as the sole shareholder.
Austraining is a specialist project management and international development organisation, managing volunteer, youth ambassador
and scholarship projects within the international aid and social development sector throughout Asia, the Pacific, Latin America, Africa and
the Carribean.
Headquartered in Adelaide, Austraining employs approximately 80 local staff, with a further 50 staff located across international offices in
Bangladesh, Ghana, Indonesia, New Zealand, Papua New Guinea, Peru and Vietnam. Austraining has an established network of more than
600 partner organisations in Australia which support and enhance its social development work.
NATIONAL PARTNERSHIPS
The department has lead responsibility for a number of National Partnership Agreements, agreed through COAG, which aim to improve
employment and economic participation among disadvantaged groups.
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DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
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The National Agreement on Skills and Workforce Development and National Partnership Agreement on Skills Reform provide a framework
for broader collaboration between South Australia and the Australian Government in relation to the VET system, improvements to
information transparency and the scope and frequency of data collections and reforms to improve the quality of training provided.
NATIONAL PARTNERSHIP AGREEMENT ON SKILLS REFORM
The National Partnership Agreement on Skills Reform will contribute to reform of the VET system to deliver a productive and highly
skilled workforce which contributes to Australia's economic future, and to enable all working age Australians to develop the skills and
qualifications needed to participate effectively in the labour market.
In 2013 South Australia signed the National Partnership Agreement on Skills Reform with the Australian Government. The Agreement
allows for the payment by the Australian Government of up to $127 million in funding to South Australia in three streams for VET.
These streams included two equal in-advance payments in 2012-13 and 2013-14 totalling $25.4 million. The second stream is a series
of annual facilitation payments for implementing structural reforms in the VET sector. As a result of Skills for All changes, the Australian
Government has made the first of these payments to South Australia. They will total around $57.1 million over the life of the Agreement
from 2012-13 to 2016-17.
In the third stream the Australian Government is making available reward payments for meeting agreed targets for additional completions
above a base which is the average number of completions in 2008 and 2009. Up to $44.4 million is available in total in 2015-16 and 2016-17.
NATIONAL PARTNERSHIP AGREEMENT ON YOUTH ATTAINMENT AND TRANSITIONS
The National Partnership Agreement on Youth Attainment and Transitions aimed to increase the educational attainment and engagement
of young people aged 15 to 24 years in education, training and employment. The Agreement included a national target of 90 per cent of
young people aged 20 to 24 to have attained Year 12 or equivalent or Certificate II or above by 2015.
In South Australia, the focus of project activities funded by the partnership were delivered exclusively in and managed by the schooling
sector. The Agreement expired on 31 December 2013.
NATIONAL PARTNERSHIP AGREEMENT ON TRAINING PLACES FOR SINGLE AND TEENAGE PARENTS
This Agreement guaranteed a training place for recipients of certain parenting payments moving onto Newstart Allowance from
1 January 2013.
South Australia received $2.23 million for 2013-14 and was due to receive the same amount in 2014-15, which would have provided
$6.68 million to South Australia for the life of the Agreement. However, the Agreement was abolished in the 2014-15 Australian
Government budget and the 2014-15 payment will not be received.
NATIONAL PARTNERSHIP ON TAFE FEE WAIVERS FOR CHILD CARE QUALIFICATIONS
Under this Agreement the Australian Government agreed to reimburse states and territories for student fees waived by TAFE and paid
by the state or territory on behalf of the student. The payment is based on advice on the take up of eligible child care courses during the
preceding year. Eligible courses at Diploma level and above have been placed on the Skills for All Funded Training List as priority fee
free courses.
NATIONAL PARTNERSHIP AGREEMENT ON REMOTE INDIGENOUS PUBLIC INTERNET ACCESS
This Agreement seeks to improve investment in communications services to Indigenous people in remote communities. The Agreement
has been extended to June 2016 as a Project Agreement with the Australian Government, with additional funding of $474 000.
During 2013-2016, the new Project Agreement will maintain the Internet Centres established in five remote communities and provide
mentoring and training in digital literacy and the use of online services and communications.
PROJECT AGREEMENT FOR THE AUSTRALIAN, STATE AND TERRITORY JOINT GROUP TRAINING PROGRAM
The Joint Group Training Program (JGTP) is a joint State and Australian Government program supporting 16 group training organisations
and Group Training Australia (SA) to implement strategies and initiatives that encourage and improve commencements and completions
in Australian Apprenticeships.
In 2013-14 the total State and Australian Government funding allocation for the JGTP was $2.5 million. The South Australian Government
maintained its commitment to the JGTP at the same level as in previous years, providing $1.35 million while the Australian Government
reduced its contribution to $1.15 million.
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TRAINING AND SKILLS COMMISSION
The Training and Skills Development Act 2008 (the Act) establishes the Training and Skills Commission and outlines its functions. The
Commission’s primary role is to advise the Minister for Employment, Higher Education and Skills on priorities for skills and workforce
development in South Australia.
During 2013 the Commission comprised nine members from industry, academia, unions and community organisations, and was chaired
by Adrian Smith from Rheinmetall Defence.
The Act also establishes two reference groups: one to advise the Commission on the ACE sector, the other on the regulation of
apprenticeships and traineeships under Part 4 of the Act. These groups are chaired by Commission members but draw on the wider
expertise from industry and the community for specialist advice through their membership and consultations.
Each year the Commission prepares its annual update of the five-year plan for skills and workforce development, Skills for Jobs. The plan is
the principal instrument by which the Commission provides advice to the Minister. In developing its advice, the Commission is required to
consult with a range of stakeholders, including groups representing industry, employees, education and training providers, government
and community groups.
PLANNING THE WORKFORCE
The 2013 plan, launched in November, reflects the changes in the make-up of the Commission and its stronger focus on policy
development than previous years, and reinforces the significance of the Skills for All reforms.
The Plan noted that demand will favour growth of higher level qualifications, as the economy of the future will require a more highly
skilled workforce. Between 2011-12 and 2016-17, it is estimated that GSP in South Australia will grow by at least 2.25 per cent per annum,
but with the potential to grow by as much as 3.25 per cent per annum if the Australian and world economies recover strongly. This
2.25 per cent projected average growth rate compares with the projection of three per cent presented the previous year.
This downward adjustment reflects a reassessment in light of the deterioration in economic conditions, which in turn has affected the
size and scheduling of some major projects.
The Commission has noted that South Australia has a range of other major projects underway or in the pipeline, requiring ongoing
investment in skills development. This will assist displaced and marginalised workers to have the skills to take advantage of emerging job
opportunities.
The projected rate of economic growth will support the creation of at least 30 000 new jobs in South Australia over the period 2011-12 to
2016-17, although on balance it is more likely that more rather than fewer jobs will be created.
South Australia’s demographics are such that, as the population ages, there will be an increasing need to replace workers who retire.
The Commission considers that a labour force participation rate of 64.5 per cent by 2024-25 would be consistent with its projections of
economic growth and employment. A lower rate of labour force participation could jeopardise South Australia realising its potential.
Over the period 2011-12 to 2016-17, the number of net job openings resulting from replacement demand is likely to be about 86 000, but
could be as low as 81 000. Combined, this results in total job openings over the five year period of 116 000, but with the possibility of up to
154 000. This compares with 139 000 job openings projected in the previous year.
The Commission is expecting apprentice and trainee commencements will be at a ten year low.
The Commission produces its annual plan following extensive consultation with industry and peak bodies, and includes a detailed analysis
on the demand for qualifications associated with specialist occupations.
The Commission continues to focus its efforts on building new industry advisory arrangements and developing criteria to assist with
priority settings for VET.
5.4 INDUSTRY TRANSFORMATION
With South Australia's economy in transition, the department has focused its industry collaboration effort in two aspects of structural
adjustment. These are the development of higher level skills and increasing enterprise productivity. The department is responding
through upskilling self-identifying retrenched employees of key companies that are ceasing their operations in Adelaide and regional areas.
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DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
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The second area is supporting employers in manufacturing sectors identified as growing strongly or in emergent niche areas. These
companies will require a workforce with higher level technological capability, underpinned by engineering and technical expertise, STEM
skills and higher level qualifications (both VET and higher education). Coupled with this is the importance of enhancing management and
leadership skills, which have been estimated to increase productivity by around 17 per cent.
AUTOMOTIVE TRANSFORMATION
The intention of GM Holden to close in 2017 exemplifies this difficult transition of the economy. Since April 2013 DFEEST has played a
leading role in a high level cross-government response team responding to uncertainty surrounding the Elizabeth plant's future. It is
estimated South Australia is likely to lose approximately $1.24 billion in GSP, 13 200 jobs and $72 million per year to the state’s taxation base.
Estimated jobs losses include 1750 direct job losses (GM Holden Elizabeth plant workers) and up to 6000 potential job losses in core
automotive suppliers. While some businesses may diversify product and customer bases, others won’t survive the exit of major
automotive manufacturers from Australia.
Successful employment outcomes require individual case management, skill recognition and career planning, job search assistance,
referral for skills and vocational training, and employment brokerage. Significant retraining and support investment will be required from
industry and government during this process.
The department has developed the Structural Adjustment Response to plan, develop and implement strategies and initiatives to support
enterprises and workers affected by the closure of GM Holden and the collapse of the automotive manufacturing industry in Australia. The
response focuses on providing coordinated, timely, effective and efficient strategies and initiatives that support workers in their transition
to alternative training and employment opportunities. It will also provide support and assistance to enterprises to prepare their workforces
for alternative markets.
The new Department of State Development is working with the Australian Government to comprehensively identify automotive supply
chain companies whose workers are eligible for assistance under the Australian Government’s Automotive Industry Structural Adjustment
Program (AISAP). Improvements including streamlined access to the program and extension to Tier 1 and 2 supply companies have also
been requested by the South Australian Government.
ONE-STOP SHOP ADVISORY SERVICE
A 90 day project was undertaken to establish a referral service to assist affected GM Holden and related supply-chain workers and
community members, ensuring they are supported in transitioning beyond 2017 through wellbeing, education and employment services.
The collaboration between DFEEST, DMITRE, Northern Connections and relevant local service providers delivered a business and action
plan in mid May 2014.
Further to this, DFEEST commenced planning South Australia’s labour market responses, and engaged local involvement and partnership.
Responses included:
• s upporting workforce development and training to diversify and transition the automotive supply chain, aimed at retaining as many
businesses as possible and maximising worker retention
• t he “GM Holden Tier 1 & Tier 2 Beyond 2017” project supporting retrenched workers re-skill for work in other sectors, in collaboration
with the AISAP, and
• d
evelopment of a One-Stop Shop advisory website and hotline for workers, businesses and communities likely to be affected by the
GM Holden closure.
Arrangements for minimising the disruption to apprenticeships and traineeships are also critical.
The next steps require further investment by both South Australian and Australian Governments to:
• improve collaboration between government, research institutions and industry to better link innovation and research in the workplace
• identify collaborative projects to ensure better utilisation of workplace skills, and workplace cultural change engendering more
productive, innovative and satisfying work
• ensure greater focus on skill development around new technologies, and
• increase coordination of early retrenchment intervention support, and reviewing with the Australian Government’s current
AISAP policy.
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05 PERFORMANCE SUMMARY
INDUSTRY GROWTH AND SUPPORT
The department’s approach of co-investing and working with industry - to strengthen the state’s workforce and capacity of South
Australians to access skilled employment in a changing economy - is an important strategy for supporting the state’s resilience and
response to the ongoing global and economic structural change.
In 2013-14, the department continued to engage with enterprises and industry associations to identify skills and workforce challenges, and
resolutions to the impediments to companies’ growth through coordinated government assistance. These consultants also developed
close working relationships with other state government agencies, including the Department of Primary Industries and Regions SA (PIRSA),
DMITRE and DPTI, as well as their counterparts in the Australian Government, particularly the Department of Industry.
The Industry Consultants provided personalised assistance to enable companies to access funding through numerous State and Australian
Government programs and grant offerings. They liaised between agencies to broker solutions for enterprises that often do not distinguish
between state government departments and that prefer to liaise with a single person across all government agencies.
From 1 July 2013 to 28 February 2014, the Industry Consultants interacted with over 370 organisations with over 880 visits across all
industries within the state, and during these visits, over 90 per cent of discussions concerned industry skills development initiatives,
including Skills for All activities.
In addition to this, Industry Consultants provided specialist services through formal contractual relationships with a number of major
organisations, including the Australian Submarine Corporation Pty Ltd (ASC) around the skills and training needs and challenges of
Air Warfare Destroyer Project workforce.
Due to the highly technical and specialised nature of the construction of the three Air Warfare Destroyers, the department continues to
support ASC to train and up-skill its workforce to ensure it has the highly specialised skills required. To further this work, the department
recently funded the ASC to undertake a skills analysis of its workforce. This enables better identification of the existing skills and
qualifications of the workforce; improves skills utilisation; and better identifies and addresses any qualification and skills requirements for
the project. Employees will be formally recognised for the skills they possess, and receive formal training for any skill or qualification gaps.
SUPPORT FOR RETRENCHED WORKERS
In South Australia, the term “retrenched worker” refers to “a person who, as a result of company closure, downturn or restructuring, has
received formal notification of exit from a company. This includes those who accept a voluntary redundancy as a result of the same”.
The South Australian Government Retrenched Worker Program provides a range of services to retrenched workers, which assists them
transition into training and/or employment.
The program, managed by DFEEST, is voluntary and workers do not have to engage with the program nor advise DFEEST if they gain
employment. Services to workers are delivered in collaboration with DFEEST’s Career Services. In the case of automotive workers the
Australian Government also is a partner.
Between 1 July 2013 and 30 June 2014, the department supported 1230 employees from thirteen South Australian companies to transition
into training and/or employment; 885 workers were based in Adelaide and 345 were located in the South East and Riverland. The program
expended $1.93 million in support for these workers to obtain full qualifications delivered through a registered training organisation,
undertake gap training to enable them to achieve a full qualification, obtain training resources required to undertake the training, and
undertake other non-accredited training that is outside VET.
5.5 SCIENCE AND INNOVATION
STEM SKILLS
STEM SKILLS STRATEGY
STEM skills are critical to the state’s future economic development. The STEM Skills Strategy launched in 2011 outlines the policy and
program priorities required to increase the number of people studying STEM and attaining high-value STEM skills. The strategy brings
together agencies and leaders across the spectrum of government, education and industry to deliver clear policy priorities.
Since implementation of the strategy, encouraging results have been seen in the uptake of STEM qualifications in South Australia. In 2014
total university offers in the main round in each of the key STEM fields (engineering and related technologies, information technology, and
natural and physical sciences) represented 18.5 per cent of total offers, a slight decrease over 2013, but still higher than previous years.
Implementation of the strategy is overseen by the STEM Executive Reference Group.
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DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
05 PERFORMANCE SUMMARY
The state government’s Investing in Science action plan builds on the strategy with additional commitments to:
• lift numeracy achievement in government schools through implementation of Great Start - Strong Foundations - Powerful Learners: Birth
to 18 Numeracy and Literacy Strategy
• launch STEM Australia, an online portal to raise the importance of STEM to students by promoting STEM events, education programs
and providing career advice
• e quip teachers, parents and students in government schools to improve learning outcomes in STEM by using the Australian Curriculum
year-by-year achievement standards to assess and report achievement for each and every student
• increase, by five per cent per year, the number of students in vocational training undertaking STEM studies through Skills for All
• f urther increase primary school teaching time for science to the Western European average of nine per cent by 2025, as recommended
by the Australian Chief Scientist
• e xpand the number of government schools with a strong focus on STEM learning and with strong connections to post school STEM
education, and
• continue to invest in professional development for government school leaders and teachers to improve teaching practices in STEM subjects.
STEM INITIATIVES
Supporting the ongoing policies in this area, the department has implemented a number of important initiatives, including:
STEM Australia
The STEM Australia website was launched in January 2014 and is aimed at attracting students and workers to pursue careers in STEM
by broadening awareness of careers that utilise STEM skills.
VET qualifications in STEM
The government has invested $35 million through Skills for All, which includes funded training support for students undertaking
STEM-related courses.
National Science Week
The department continued its long-standing investment in National Science Week in South Australia providing $40 000 towards
17 community science events around the state. National Science Week is a nation-wide celebration of science and technology comprising
around 1000 events delivered by schools, tertiary institutions, museums and science organisations.
Concept-2-Creation Program
The department invested in the industry-led Concept-2-Creation Program developed by the Northern Advanced Manufacturing Industry
Group. The program introduces a “project life cycle approach” helping schools and students develop the knowledge, understanding
and appreciation of advanced manufacturing processes and possibilities, through a problem-based learning approach. In 2013,
Concept-2-Creation was implemented in 31 schools throughout the state with over 3000 students participating in the program.
Science and Engineering Challenge
The Science and Engineering Challenge is a national competition designed to inspire school students to study senior science and
engineering. The competition is held through participating schools around the state with winners progressing to the national final.
Defence Scholarships Program
The Defence Scholarships Program provides support to Honours students considering a career in the defence sector. Now in its fourth
year, the scholarship continues to ensure a long-term supply of skills to meet the workforce needs of the South Australian defence
industry. The $5000 scholarship was awarded to 65 applicants for the 2013 academic year.
CSIRO Education South Australia
The department supported CSIRO Education South Australia to expand the outreach and in-centre science awareness activities for
students, career events and professional development opportunities for teachers. Approximately 55 000 students and adults participate in
CSIRO Education programs annually.
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05 PERFORMANCE SUMMARY
Other initiatives
The department also provided two one-off grants:
• $ 45 000 to Mobile Science Education to deliver science curriculum programs to schools in regional South Australia as well as four
professional development programs for primary schools. Themes included earth and space sciences, physical sciences, chemical
sciences and biological sciences.
• $ 50 000 (per annum for three years) to SciWorld to deliver science outreach programs to schools and communities in regional areas of
South Australia. SciWorld held seven SciWorld Sunday Science Fairs, of which five were in regional areas (Coober Pedy, Mount Gambier,
Port Augusta, Port Lincoln and Whyalla).
WORKING EFFECTIVELY WITH THE AUSTRALIAN GOVERNMENT
Australia’s Chief Scientist, Professor Ian Chubb AC, has been a vocal advocate of the importance of STEM, particularly the challenges that
Australia faces by the decline in STEM expertise.
There is an opportunity for South Australia to take the lead on initiatives in this area and be a pilot for national initiatives. The new
Australian Government Industry and Skills Council, endorsed as a standing committee of COAG, may provide a new forum to promote this
agenda at a national level.
SCIENCE AND RESEARCH
PREMIER’S SCIENCE AND INDUSTRY COUNCIL AND CHIEF SCIENTIST
The Premier’s Science and Industry Council provides strategic advice to the Premier, Minister for Science and Information Economy,
and Cabinet on a range of matters and initiatives relating to science, technology and innovation. The Chief Scientist for South Australia,
Professor Don Bursill, co-chairs the council with the Premier.
In 2013-14 the council held seven meetings and a number of working groups met more frequently. The Council’s working groups have
been formed to:
• provide advice on the effective communication of the importance of science to the general community
• p
rovide guidance and advice on the commercialisation of research and mechanisms to strengthen the links between the research
sector and industry, and
• oversee the implementation and monitoring of the Investing in Science action plan.
Investing in Science - An action plan for prosperity through science, research and innovation
In January 2014 the South Australian Government released Investing in Science – An action plan for prosperity through science, research
and innovation. The plan provides a new coordinated approach to science, research and innovation in South Australia.
The plan adopted all ten recommendations made by the council and were formulated from feedback received during an extensive
consultation. The plan allocates an additional $8 million over four years to implement new and expand existing initiatives. Key objectives
of the plan are:
• attract and retain high calibre researchers in South Australia and build the capability of existing researchers
• position South Australia as leading the nation on STEM education at the school, vocational and higher education levels
• significantly increase high quality research in South Australia that aligns to the state’s priorities
• strengthen the links between education, research and industry to improve translating research into new products and services
• increase international collaboration in research and development, promote increased investment into South Australia based on our
research strengths and help South Australian companies compete in the global market place
• sustain the state’s reputation as a leader in research conducted for the benefit of society, and
• e nsure South Australia’s science, research and innovation community has access to the equipment, facilities and infrastructure needed
to undertake industry relevant research.
Together with the council, the department has been developing implementation plans and monitoring arrangements across government
for the 41 actions that underpin the plan.
Investing in Science will inform future state government investment in science, research and innovation projects, incorporating a national
context that will enable greater leveraging of investment by our research institutions and universities from the Australian Government
grant programs.
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DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
05 PERFORMANCE SUMMARY
INVESTMENT IN SCIENCE AND RESEARCH
Premier’s Research and Industry Fund
The Premier’s Research and Industry Fund was established to support South Australia’s research community to compete successfully
on a national and global scale. The fund encourages investment in key science and research areas that have the potential to generate
significant economic, social and/or environmental benefits for the state. The fund consists of five strategic program areas:
• S A Research Fellowship Program - attracting world class researchers with expertise that will enhance research capabilities in South
Australia and support key industry sectors for the state
• C
ollaboration Pathway Program - supporting both established and early stage South Australian-based collaborations that undertake
leading edge and potentially transformational research and development
• International Research Grant Program - facilitating South Australian specific research being conducted with an international partner
• Innovation Voucher Program - a joint initiative between the department and the former DMITRE encouraging greater innovation in the
advanced manufacturing sector and driving connectivity and collaboration between industry and the research sector, and
• Catalyst Research Grants - supporting early career researchers undertaking research in collaboration with industry and end users.
In 2013-14, the fund provided a total of $6 million across the above program areas, with $3.7 million allocated to existing projects and
$2.3 million allocated to new projects.
Since 2003-04, the fund has committed $46.8 million over 82 projects; which has leveraged $95.5 million from the Australian Government,
industry partners and institutions.
High Value Food Manufacturing Centre
In November 2013, the department launched the $4.2 million High Value Food Manufacturing Centre (the Food Hub). A key objective of
the FoodHub is to increase food manufacturing industry investment in science and research through the Advanced Food Manufacturing
Grants Program. The first round of this program concluded in May 2014 with nine food manufacturers receiving funding from a strong
field of applicants.
Responsibility for the FoodHub transferred to PIRSA on 1 July 2014, as it aligns closely with the strategic priority of Premium Food and
Wine from Our Clean Environment.
Medical Research Commercialisation Fund
In 2014, DFEEST, SA Health and the South Australian Health and Medical Research Institute (SAHMRI) entered into an agreement with the
Medical Research Commercialisation Fund (MRCF) to establish a presence in South Australia, committing $600 000 per annum over four
years. The entry of the MRCF into South Australia will allow all health and medical research related institutions to access the expertise and
venture capital finance of the MRCF. The first South Australian research member is SAHMRI.
The MRCF is a venture capital fund providing dedicated funds for the commercialisation of research emanating from its member medical
research institutes. It was established by Australian superannuation funds and medical research institutes and hospitals in 2007. Since this
time the MRCF has secured $50 million in investment capital and its membership has grown to 32 medical research institutes, research
hospitals and health departments across all mainland states.
Cooperative Research Centre Assistance Program
The Australian Government’s Cooperative Research Centre (CRC) program supports applied research between industry and research
institutions. Funding is allocated through a competitive basis with centres established (mostly between five to seven years duration) in
areas of national importance. The South Australian Government, through DFEEST, provides a CRC Assistance Program offering $100 000 for
nodes based in South Australia or $200 000 for those headquartered here.
The CRC Assistance Program currently supports ten CRCs and in 2013-14 provided a total of $1.2 million in funding support. The CRC
Assistance Program also supported the Data to Decisions CRC bid application, headquartered in South Australia, which was successful in
receiving Australian Government funding of $25 million over five years from 2014-15.
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05 PERFORMANCE SUMMARY
DIGITAL PRODUCTIVITY AND TECHNOLOGY
NBN ROLLOUT IN SOUTH AUSTRALIA
The National Broadband Network (NBN) was announced by the Australian Government in April 2009. Although the NBN is the
responsibility of the Australian Government, the department is keen to ensure that our state maximises the benefits from high speed
broadband services. Significant areas of the state do not have access to affordable high speed connections that are needed now and into
the future to support businesses and the delivery of online government service delivery, remote/distance education and telemedicine.
In South Australia, the NBN was launched in Willunga in September 2011, one of the first five sites on mainland Australia. Since that time,
NBN rollouts have been completed in McLaren Vale/McLaren Flat, with Prospect, Modbury, Seaford and Aldinga rollouts progressing.
Fixed Wireless rollout has commenced in the South East/Murraylands with the first connections in June 2014. Further rollout areas are
expected to be announced soon.
According to figures released by NBN Co in its most recent status report (June 2014), South Australia’s share of number of ‘premises passed’
is 15 965 versus 560 241 for Australia and for ‘premises activated’ 6359 versus 199 067 for Australia.
The department leads an across government SA Early NBN Sites Reference Group designed to foster collaboration and information sharing
across local government in NBN rollout areas. The department will continue to monitor the rollout of the NBN closely as the new NBN
model commences in late 2014, especially in regional areas.
Mobile Blackspot Program
The Australian Government announced a $100 million funding program to address remaining mobile phone coverage blackspots in the
2014 Australian Government Budget.
The department is working with a number of agencies including Regional Development in PIRSA and the Office of the Chief Information
Officer to coordinate the nomination of new mobile blackspot locations and liaison with the Australian Government Department of
Communications in regards to program guidelines.
NATIONAL DIGITAL ECONOMY STRATEGY
The National Digital Economy Strategy (NDES) sets out a vision for Australia to realise the benefits of the NBN and position Australia as
a leading digital economy by 2020.
The NDES outlines eight digital economy goals in key focus areas:
• online participation by Australian households
• online engagement by Australian businesses and not-for-profit organisations
• smart management of our environment and infrastructure
• improved health and aged care
• expanded online education
• increased teleworking
• improved online government service delivery and engagement, and
• greater digital engagement in regional Australia.
Through the South Australian Digital Economy Strategy Group, DFEEST has contributed to a number of key focus areas. The department
is championing the release of South Australian Government data under the Open Data Declaration and is a key sponsor of Unleashed, the
South Australian node of the national open data competition, GovHack. Unleashed gives the general public access to non-sensitive data
that can be reused and remixed to create mobile applications and website tools that solve problems and generate new ideas.
Through the digital literacy learning tool, ForwardIT, DFEEST is specifically addressing online participation by Australian households and
online engagement by Australian businesses and not-for-profit organisations. ForwardIT continues to be the digital learning tool of choice
for libraries, schools, the ACE sector, registered training organisations, the aged sector, multicultural groups and job seeker agencies. As
a free web-based digital literacy resource, ForwardIT helps individuals and businesses develop knowledge and confidence in using the
Internet and business software. Demand for digital literacy skills, via the use of ForwardIT, continues to increase, with around 300 984 page
views and over 1000 iPad downloads.
The NDES update sets out the next phase in the journey and identifies readiness, environment and usage as three key elements as
enablers of leading digital economies with the NBN being the key driver.
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DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
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The Australian Government is currently reviewing the NDES and aspects of the many programs to determine refined focus areas to drive
the digital economy.
INVESTMENTS IN DIGITAL ECONOMY AND TECHNOLOGY
Venture Catalyst
Innovation and entrepreneurship is a key driver of our state’s future prosperity. It will help create high-tech, sustainable jobs, economic
growth, and will boost our state’s global competitiveness. The Venture Catalyst program supports entrepreneurship by encouraging
collaboration between students from the University of South Australia (UniSA) and industry to create start-ups for the commercialisation
of products, services or processes in any field of research offered by UniSA.
Venture Catalyst, a partnership between the state government and UniSA, will help to:
• increase the number of university graduates skilled in developing and commercialising new ideas
• increase the number of university graduates motivated to start a new local company
• increase the number of successful start-ups in South Australia and the amount of investment in these start-ups
• boost employment opportunities for South Australians, and
• increase the number of talented entrepreneurs who are encouraged to stay in South Australia.
Adelaide free Wi-Fi
DFEEST, through initiatives such as the Adelaide Wi-Fi network, promotes investment in and the use of digital technology. In partnership
with the Adelaide City Council, DFEEST facilitated the deployment of a free public wireless network across the Adelaide central business
district, North Adelaide, in public spaces and surrounding parklands.
The state government invested $1 million in the project, with the Adelaide City Council contributing $500 000. iiNet, represented by local
subsidiary Internode, was awarded the contract to construct the network by June 2014, and operate and manage the service for five years
until June 2018.
The expanded wireless coverage provides fast free Internet access such that tourists and visitors can use it to stay in touch with family
and friends, students can use it to study, business can use it for remote access to their office networks, or the wider community to stay in
touch by email, social networks or for online ordering. The network comprises over 200 outdoor points, making it the largest of its type in
Australia. The service was successfully launched on 25 June 2014.
eBizSA
The eBizSA program, delivered in partnership with local councils, Regional Development Australia and industry organisations, shows
South Australian SMEs how to use digital technology to improve their competitiveness, streamline their business systems, and identify
new markets. Since 2006, the state government has invested around $550 000 in programs aimed at boosting the digital skills of South
Australian SMEs.
MEGA
The MEGA entrepreneurship masterclass has been held each year since 2006 and helps participants build on their creative, technical or
business skills and learn how to develop a business from a concept through to the creation of an enterprise. MEGA has become a highly
recognised program, with extensive support from industry, mentors and presenters.
Management of MEGA was outsourced to industry, through the Majoran Distillery, in 2013. A total of 18 participants contributed to five
written business proposals, with pitch presentations conducted in December 2013.
FabLab
FabLab Adelaide is a community 3D printing and fabrication workshop that supports small businesses, schools, entrepreneurial and
creative individuals through the provision of free and low cost access to equipment, expertise and training.
The FabLab concept was originated by Massachusetts Institute of Technology (MIT), and there are now approximately 150 around the world.
FabLab Adelaide is the first Australian-based participant in the international MIT FabLab network and has been in operation since 2012.
Original funding to establish FabLab Adelaide was provided by DFEEST. Further development and expansion is now being explored
through a collaboration between UniSA and Flinders University at the Tonsley and City West sites.
P 32
06
ABBREVIATIONS
ACE
Adult community education
AISAP
Automotive Industry Structural Adjustment Program
AQF Australian Qualifications Framework
ASC
Australian Submarine Corporation Pty Ltd
ATO Australian Taxation Office
BFO
Building Family Opportunities program
COAG
Council of Australian Governments
CRC
Cooperative Research Centre
DECD
Department of Education and Child Development
DFEEST
Department of Further Education, Employment, Science and Technology
DMITRE
Department for Manufacturing, Innovation, Trade, Resources and Energy
DPTI
Department of Planning, Transport and Infrastructure
DSD
Department of State Development
ELICOS
English Language Intensive Courses for Overseas Students
FYTE Full-year training equivalent
GSP
Gross state product
HEPPP
Higher Education Participation and Partnerships Program
ICAN
Innovative Community Action Networks
ICT Information and communication technology
IISC
Industry and Indigenous Skills Centres
JGTP
Joint Group Training Program
MIT
Massachusetts Institute of Technology
MRCF
Medical Research Commercialisation Fund
P 33
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
06 ABBREVIATIONS
NBN
National Broadband Network
NDES
National Digital Economy Strategy
PIRSA
Primary Industries and Regions SA
SACE
South Australian Certificate of Education
SAHMRI
South Australian Health and Medical Research Institute
SASP
South Australia’s Strategic Plan
SMEs
Small to medium enterprises
STEM
Science, technology, engineering and maths
TaSC
Training and Skills Commission
TGSS
Training Guarantee for SACE Students
TVSP Targeted Voluntary Separation Package
UniSA
University of South Australia
VET
Vocational education and training
WHS Work health and safety
P 34
07
7.1
APPENDICES
MINISTERIAL ACCOUNTABILITY
The Minister is accountable to the South Australian public for the delivery of efficient and effective services that respond to training,
employment and workforce needs.
CURRENT ACCOUNTABILITY
HON GAIL GAGO MLC
From 26 March 2014
Minister for Employment, Higher Education and Skills
Minister for Science and Information Economy
PREVIOUS ACCOUNTABILITY
HON GRACE PORTOLESI MP
21 January 2013 to 15 March 2014
Minister for Employment, Higher Education and Skills
Minister for Science and Information Economy
7.2
LEGISLATION ADMINISTERED BY THE DEPARTMENT
During 2013-14, the following legislation was administered by the department:
• Construction Industry Training Fund Act 1993
• Construction Industry Training Fund Regulations 2008
• Flinders University of South Australia Act 1966
• Public Corporation (BioInnovation SA) Regulations 2001
• Public Corporations (Education Adelaide) Regulations 2011
• TAFE SA Act 2012
• TAFE SA Regulations 2012
• Technical and Further Education (Vehicles) Regulations 1998 (made pursuant to the TAFE Act 1975)
• Training and Skills Development Act 2008
• Training and Skills Development Regulations 2008
• University of Adelaide Act 1971
• University of South Australia Act 1990
Additionally, the South Australian Vocational Education and Training Act 2012 has been committed to the Minister for Employment, Higher
Education and Skills and the Minister for Science and Information Economy, the Hon Gail Gago. The department holds no administrative
responsibility under this Act.
P 35
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
07 APPENDICES
7.3
ACCOUNT PAYMENT PERFORMANCE
Table 5: Account payment performance
Number of
accounts paid
% of
accounts paid
(by number)
Value in $A of
accounts paid
% of
accounts paid
(by value)
17 240
98.56%
$650 028 143
98.62%
Invoices paid within 31 to 60 calendar days
203
1.16%
$6 590 746
1%
Invoices paid greater than 30 calendar days
48
0.28%
$2 501 372
0.38%
17 491
100%
$659 120 261
100%
Invoices paid within 30 calendar days or less
Total accounts paid
In 2013-14, DFEEST paid invoices within 30 calendar days or less at the rate of 98.6 per cent (by number and by value). This is an improvement
on 2012-13 when invoices were paid within 30 calendar days or less at the rate of 94 per cent (by number) and 96.5 per cent (by value).
7.4
ASBESTOS MANAGEMENT IN GOVERNMENT BUILDINGS
DPTI conduct annual asbestos audits which form the basis of the asbestos register for each site. In 2013-14 DFEEST spent approximately
$90 000 directly managing asbestos containing materials which was allocated across TAFE SA for addressing high risk categories as
outlined in the asbestos register for each site.
It should be noted that asbestos management reporting is incorporated into an annual across government report undertaken by DPTI.
7.5
BOARDS, COMMITTEES AND AUTHORITIES
As at 30 June 2014 the following boards, committees and other bodies were either a part of, or under the control of, the department.
MINISTER FOR EMPLOYMENT, HIGHER EDUCATION AND SKILLS
• Austraining International Pty Ltd
• Construction Industry Training Board
• Education Adelaide Board
• Training and Skills Commission
• Training and Skills Commission - Access and Participation Reference Group
• Training and Skills Commission - Quality Reference Group
• Training and Skills Development Act 2008 Assessor Panel
MINISTER FOR SCIENCE AND INFORMATION ECONOMY
• Bio Innovation SA Board
• Bio Innovation SA Board - Audit Committee
• Bio Innovation SA Board - Investment Committee
• Premier’s Science and Industry Council
P 36
07 APPENDICES
7.6CONSULTANTS
Table 6: Consultants
Below $10 000
Between $10 000 and $50 000
Above $50 000
Total
Amount
(excl GST)
Number of
consultancies
$5 000
1
$75 000
3
$119 000
2
$199 000
6
Table 7: Details of consultancy expenditure more than $10 000
Consultant
Description of work
Amount
Australian Bureau of Statistics
To provide expert advice and consultancy services in the development of
the SA Skills survey
$19 000
Jane Jeffreys Consulting
To provide expert advice and consultancy services in the restructuring of
agencies to form the new Department of State Development
$21 000
Globaled Services
To undertake an independent study to determine an optimum and
sustainable model for the support of the international education market in
South Australia
$35 000
Lista
To undertake an independent red tape reduction review
$56 000
Ernst and Young
To undertake a lean process review of Traineeship and Apprenticeship
Services within DFEEST
$63 000
CONTRACTUAL ARRANGEMENTS
The department did not enter into a contract greater than $4 million under the requirements of Premier and Cabinet Circular 013 – Annual
Reporting Requirements..
7.7
DISABILITY ACTION PLANS
A review of the department’s Access and Inclusion Plan 2012-2015 commenced in 2014, and a Disability Access and Inclusion Plan will
be developed in consultation with employees and members of the community. The new plan will outline the Department of State
Development’s commitment to improved physical accessibility, genuine inclusion and strategies to meet the service needs of people
with disability.
Other initiatives included workplace modification to enable workers with disability to perform their duties, inviting workers with
disability to apply for departmental positions through employment vacancy advertisements and promoting opportunities for people
with disabilities.
INFRASTRUCTURE
The Minister for Employment, Higher Education and Skills owns 52 TAFE SA campuses. The department is responsible for ensuring that
access to those facilities is not restricted to people with a disability. In 2013-14 the department funded over $90 000 of projects to improve
the access for staff and students to TAFE SA and DFEEST facilities.
P 37
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
07 APPENDICES
7.8
FINANCIAL OVERVIEW
In 2013-14, total expenses from ordinary activities decreased by $13.9 million. The movement in expenses can be explained as follows:
• a decrease in Employee Benefits of $84.9 million relating primarily to four months of TAFE SA employee costs being included in 2012-13
(TAFE SA was proclaimed as a statutory authority and separated from DFEEST on 1 November 2012), and
• a decrease in Supplies and Services of $22.4 million relating primarily to four months of TAFE SA printing, cleaning, utility and property
maintenance costs being included in 2012 13.
The abovementioned decreases in expenses have been partly offset by:
• an increase in VET funding of $38.1 million due to growth in the Skills for All program
• an increase of $33.5 million in Grants and Subsidy Expenses relating primarily to grants provided to TAFE SA, and
• a n increase of $22.3 million in Other Expenses relating primarily to an increase in DFEEST reimbursements to TAFE SA for Targeted
Voluntary Separation Package payments.
In 2013-14, total income from ordinary activities decreased by $34.5 million primarily due to the recognition in 2012-13 of fees, charges and
commonwealth grants attributable to the operations of TAFE SA for the period 1 July 2012 to 31 October 2012.
The tables provided in this section set out a summary of the actual results for the 2013-14 financial year. The detailed financial statements
reflecting actual results for 2013-14 are presented under Section 8 Financial Statements.
Table 8: Summary of financial information
Actual
2013-14
$’000
Actual
2012-13
$’000
Expenses
Income
580 305
82 876
594 234
117 403
Net cost of providing services
497 429
476 831
Revenues from government
504 808
425 892
7 379
(50 939)
Statement of comprehensive income
Net result
OPERATING REVENUES
Total operating revenues for 2013-14, including revenues from government, amounted to $587.7 million. The principal source of funding
for the department relates to State Government appropriations which in 2013-14 amounted to $504.8 million. Other operating revenues
included $44.3 million from fees and charges and Commonwealth grants of $31.5 million.
$0.4 million
$4.0 million
$2.6 million
$44.3
$31.5
million million
$504.8
million
Revenues from SA Government ($504.8 million)
Commonwealth Grants ($31.5 million)
Fees and Charges ($44.3 million)
Other Grants and Contributions ($2.6 million)
Investment Income ($0.4 million)
Other Income ($4.0 million)
Figure 7: Overview of revenue sources for 2013-14
P 38
07 APPENDICES
OPERATING EXPENSES
VET funding amounted to $309.1 million (or 53 per cent) of the department’s total 2013-14 operating expenses of $580.3 million. Within
this category, $192.6 million related to funding of TAFE SA, whilst the balance of $116.5 million related primarily to VET funding of private
providers.
Supplies and services expenses of $34.9 million related primarily to information technology infrastructure and communication expenses
($13 million) and fees for contracted services ($6.8 million).
Grants and subsidies expenses amounted to $130.5 million, including $73.6 million to TAFE SA, $19.6 million for employment programs,
$15.3 million for science and information economy programs and $11 million for Tertiary Student Transport Concessions.
Other major components of operating expenses amounted to $53.7 million for employee benefits and $30 million for other expenses.
A further $21.9 million was charged to depreciation and amortisation expense.
$0.2 million
$21.9 million
$30.0 million
$53.7
million
Employee Benefits ($53.7 million)
$130.5
million
VET Funding ($309.1 million)
$309.1
million
$34.9
million
Supplies and Services ($34.9 million)
Grants and Subsidies ($130.5 million)
Depreciation and Amortisation ($21.9 million)
Net Loss from the Disposal of
Non-Current Assets ($0.2 million)
Other Expenses ($30.0 million)
Figure 8: Overview of operating expenses for 2013-14
Table 9: Overview of operating expenses 2013-14
$ million
$482.4
Employment and skills formation - VET
Coordinate high quality VET through TAFE SA and other registered training organisations through:
• t he investment of public funds to support individuals and employers to develop workforce skills, including
through apprenticeships and traineeships
• supporting post-secondary training and education to meet industry requirements, and
• providing state and national policy advice.
$54.6
Employment and skills formation - learning, workforce participation and workforce development
Address the state’s economic development, productivity and social inclusion objectives by:
• p
roviding opportunities for people to participate in employment, training, skills development and adult
community education
• meeting the current and future labour and skill needs of industry, and
• providing state and national policy advice.
P 39
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
07 APPENDICES
Table 9: Overview of operating expenses 2013-14 continued
$ million
Employment and skills formation - quality assurance and regulatory services
$16.2
Administer the state’s further education and training system through:
• q
uality assurance of Skills for All training providers and other training organisations in accordance with
contract standards
• quality oversight of the state vocational education system through the TaSC
• regulating and administering the apprenticeship and traineeship system, and
• providing state and national policy advice.
Employment and skills formation - international and higher education
$5.4
Support South Australian higher education institutions, both local and international, in sustaining the state’s
reputation for quality teaching and learning for both domestic and international students.
Provide high level strategic policy advice to the Minister on higher education policy and planning.
Science, technology and information economy - science and innovation
$13.1
Provide high level strategic advice to the Minister on maximising economic, environmental and social benefits from
the state’s scientific and research performance and investments by:
• identifying strategic priorities for state government investment in science and research
• r aising awareness and understanding of the benefits of science and innovation amongst government, business
and the community
• facilitating coordinated and strategic bids for Australian Government grants, and
• f acilitating the coordination of education and research activity with end-user (industry) requirements to maximise
the benefits for South Australia.
Science, technology and information economy - bioscience industry development
$5.7
Develop the bioscience industry by providing assistance in business development, finance, infrastructure
and marketing.
Science, technology and information economy - information economy
$2.9
Provide high level strategic policy advice to the Minister and government on the information economy and the
information and communications technology (ICT) sector with particular regards to its uptake and effective use to
maximise economic benefits across the state through:
• d
eveloping strategy and facilitating programs and projects for promoting the information economy and
supporting the deployment, availability and effective use of broadband across the state
• supporting strategic investments projects that deliver on the information economy objectives, and
• implementing initiatives that support digital literacy across the community.
Total
$580.3
P 40
07 APPENDICES
7.9
GREENING OF GOVERNMENT OPERATIONS
ENERGY EFFICIENCY
The 2013-14 energy usage result was positive with the portfolio achieving an overall average of 3.2 per cent increase in energy use
compared to 2012-13.
This is the first financial year that the department has reported energy usage separately to TAFE SA. This significantly changes the
department’s data as energy usage for the approximate 52 TAFE SA operated campuses will be reported on in the TAFE SA Annual Report.
Data for the previously reported base year of 2000-01 does not exist for DFEEST only assets. Data for the 2012-13 reporting period has
been included to provide an indication of change in energy use across periods.
Three vacant TAFE SA sites were taken over by the department and the energy usage for these sites has reduced significantly as they are
now unused awaiting sale.
The sustainability reporting is aligned to the department’s strategic directions, the whole of government Energy Efficiency Action Plan
and the Greening of Government Operations Plan, which are all linked to various SASP targets, of which the following objectives, goals
and aims are reported:
Table 10: Performance against annual energy usage targets
Energy use (GJ)1
$ (ex GST)
Business measure
MJ/m2
Year 2012-13
1 840
$150 904
187
Year being reported (2013-14)
1 889
$141 781
193
Reduction from 2011-12
4.5%
Final Target (for 2015 from 2000-2001)
20%
Business Measure m2
9 846 m2
Disclaimer:
The department has endeavoured to provide the most accurate information from all possible sources available to it and any unintentional
inconsistencies are beyond the department’s control.
Notes:
1.Energy use is expressed in gigajoules (GJ) and is the sum of all fuel types used in our facilities (electricity, natural and bottled gas) for
that period.
2.The key performance indicator for energy efficiency is energy intensity; the amount of energy consumed per unit of a given business
measure. DFEEST uses the net size of all of our facilities in m2. This is a common measure used across many agencies.
FLEET MANAGEMENT
As at the completion of the 2013-14 financial year, the department’s fleet had a total of 32 vehicles, a reduction on the previous period by
three vehicles. During the year the department continued to migrate the fleet from six cylinder to four cylinder vehicles where possible
and increased the use of alternatively fuelled vehicles during this time of which diesel fuel is preferred.
The department’s fleet kilometre travelled per vehicle has reduced significantly from the previous reporting period from 6449 km per
vehicle per quarter to 624 km per vehicle per quarter, with a total of 79 946 km across the fleet for this period. This is consistent with the
reduced regional travel responsibilities of the department now that TAFE SA has become a statutory body.
The vehicle fleet used a total of 5030 litres of diesel fuel, 8570 litres of LPG and 15 520 litres of unleaded fuel which represents an 84 per cent
decrease in the total amount of diesel, LPG and unleaded fuels compared with the same period for the previous financial year. This is
consistent with the decreased number of kilometres travelled by fleet vehicles.
Greenhouse gas emissions have fallen from 228.33g per km to 223g per km. This is a further reduction on the whole of fleet average
of 238.12g. The department is well advanced toward achieving its greenhouse gas emissions target reduction achieving a reduction of
23.03g against a target of 25.4g.
P 41
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
07 APPENDICES
WASTE MANAGEMENT
This represents the first financial year that the department has reported waste management separately to TAFE SA. This significantly
changes the department’s data, as waste for the approximate 52 TAFE SA operated campuses will be reported on in the TAFE SA
annual report.
The department is responsible for portions of two leased buildings within the central business district, one of which has a five star green
star rated fit out. In accordance with the requirements of the green star accreditation, waste removed from the site is managed in a
sustainable manner. In 2013-14, 83 per cent of the waste was recycled with the remaining 17 per cent going to land fill.
WATER USAGE
As with energy efficiency and waste management, this represents the first financial year that the department has reported water usage
separately to TAFE SA.
The department’s facilities are portions of large multi storey buildings within the central business district and are not separately metered
or charged directly for water usage.
7.10
MANAGEMENT OF HUMAN RESOURCES
EMPLOYEE STATISTICS
The following data is based on records extracted from the department’s Human Resource Information System, and relates to individuals
identified as DFEEST employees as at 19 June 2014, the last pay of the 2013-14 financial year.
Unless otherwise stated, the data includes all executive and non-executive employees.
The abbreviation FTE stands for full time equivalent. The term ‘persons’ refers to the headcount of individuals employed. Data provided is
based on headcount unless specifically referred to as FTE.
Table 11: Total number of employees
Persons
FTEs
533
505.19
Table 12: Employee numbers by gender
Gender
Persons
%
FTE
%
Male
243
45.59
238.26
47.16
Female
290
54.41
266.93
52.84
Total
533
100
505.19
100
Table 13: Number of persons who were recruited to and separated from the department
Separated from the department
221
Recruited to the department
101
P 42
07 APPENDICES
Table 14: Age distribution of employees by headcount and gender
Age bracket
(years)
Male
Female
Total
% of total
Workforce
benchmark (%)
15 - 19
0
1
1
0.19
5.73
20 - 24
6
12
18
3.38
9.47
25 - 29
22
27
49
9.19
10.39
30 - 34
44
41
85
15.95
9.79
35 - 39
50
55
105
19.70
10.56
40 - 44
34
30
64
12.01
11.73
45 - 49
23
30
53
9.94
11.89
50 - 54
17
29
46
8.63
11.51
55 - 59
23
33
56
10.51
9.39
60 - 64
18
28
46
8.63
6.30
6
4
10
1.88
3.23
243
290
533
100
100
65+
Total
Table 15: Number of employees by salary bracket
Male
Female
$1 - $51 599
14
24
$51 600 - $65 699
47
55
$65 700 - $84 099
72
87
$84 100 - $106 199
81
103
$106 200 +
29
21
243
290
Total
Table 16: Status of employees in current position
Ongoing
Short-term
contract
(0 > 12 months)
Long-term
contract
(< 12 months)
Total
Male
168
63
12
243
Female
197
77
16
290
Total
365
140
28
533
Ongoing
Short-term
contract
Long-term
contract
Total
Male
164.66
61.60
12
238.26
Female
180.73
70.20
16
266.93
345.39
131.80
28
505.19
Table 17: Status of FTE employees in current position
Total
P 43
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
07 APPENDICES
Table 18: Number of executives by gender and classification
Classification
Tenure
Male
Female
EXEC ULE
N
1
0
SAES-1
N
4
7
SAES-2
N
3
0
8
7
Total
Table 19: Aboriginal and/or Torres Strait Islander employees
Male
Female
Total
% of agency
% of SA
community*
7
8
15
2.81
2
* Target set by South Australia’s Strategic Plan (% Public Sector)
Table 20: Cultural and linguistic diversity
Male
Female
Total
% of
agency
% of SA
community*
11
15
26
4.9
22.11
3
6
9
1.7
14.38
Number of employees born overseas**
Number of employees who speak language(s)
other than English at home
* Benchmark from ABS Publication Basic Community Profile (SA) Cat No. 2001.0, Tables B09 and B13a-B13b (2011 Census)
** Employees are not compelled to provide this information and therefore, the information in the table is not a true reflection
Table 21: Number of employees identified as having disability
Employees are not compelled to provide this information and therefore, the information in the table is not a true reflection.
Employees with disability
4
Table 22: Average leave days
09-10
10-11
11-12
12-13
13-14*
Paid sick leave
8.20
8.36
8.18
8.59
9.47
Special leave with pay
3.19
3.22
2.28
4.53
3.42
* Average leave days taken per FTE over each financial year
P 44
07 APPENDICES
VOLUNTARY FLEXIBLE WORKING ARRANGEMENTS
Table 23: Voluntary flexible working arrangements
Type
Male
Female
Total
0
2
2
231
266
497
2
2
4
Part-time
14
62
76
Job share
0
1
1
Working from home
0
6
6
Purchased leave
Flexitime
Compressed weeks
PERFORMANCE DEVELOPMENT
PERFORMANCE COACHING
The department’s Performance Coaching Framework encourages two-way conversations and aligns employees’ understanding of their
duties and responsibilities to the SASP, the department’s Strategic Priorities and agency business plans.
The framework assists the department to achieve a culture of ongoing and continued performance coaching, planned performance
development to meet organisational needs, and career planning through performance coaching meetings between employees and
their managers.
Performance coaching online
Performance coaching online is designed to enhance the performance coaching process. Since implementation of the system:
• 55 per cent of managers have registered performance management data into the system, and
• 66 employees have either completed or planned performance coaching meetings using the online system.
The current data has been impacted by system difficulties. The online system is being reviewed to improve record keeping
and accessibility.
Table 24: Documented review of individual performance management
Employees with …
% of total workforce
A review within the past 12 months
16.7
A review older than 12 months
21.4
No review
61.9
GRADUATE PROGRAM
The department’s Graduate Employment Strategy 2010-2015 is an innovative program designed to address and refresh the department’s
ageing workforce. This annual program provides six skilled graduates with a career pathway into the department and the South Australian
public sector.
Graduates participate in a structured program that includes rotational placements across the department’s business units and completion
of a tailored development program. The program has been designed to prepare graduates to secure further employment within the
public sector at the end of their 12 month graduate employment experience.
Table 25: Graduate numbers by gender
P 45
Male
Female
2
4
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
07 APPENDICES
ABORIGINAL TRAINEESHIP PROGRAM
The department’s Aboriginal traineeship program was integrated into the Government’s new Jobs4YouthSA initiative launched in March
2014, as part of the department’s planned approach towards recruiting and developing Aboriginal trainees within the department. The
department recruited one Aboriginal trainee to work across the department.
EMPLOYMENT OPPORTUNITY PROGRAMS
Table 26: Employment opportunities by gender
Male
Female
Apprentices, trainees* and cadets
0
1
Aboriginal recruitment programs (includes
Aboriginal traineeship programs)
1
2
Disability Employment Registers recruitment
0
2
* Includes Aboriginal trainees
ORGANISATIONAL CAPACITY BUILDING PROGRAM
The department has a strong Capacity Building Program which focusses on three core areas: workforce planning, capacity building and
culture. The program is underpinned by the department’s Capability Framework which establishes the core capabilities and skill sets
required across the department. The framework consists of five core capability areas: communication, business excellence, achieving
results, positive working relationships and strategic and operational thinking.
Skills development identified as priorities for staff included:
• leading service change in wellbeing
• service excellence
• project management and project governance
• leadership
• change management
• resilience and business improvement
• performance management, and
• work, health and safety.
In addition, specific programs for management, leadership and executive development were incorporated into the program.
The program is centrally funded in the department by Corporate Services and individual directorates. Funds are allocated to the program
with activities are negotiated annually, based on business need and future directions of the department.
A total of 843 staff participated in the program which comprised of:
• leading change
• making the most of change
• building resilient and successful teams; building resilience and self-management and developing your performance edge
• work and wellbeing
• leading service excellence; customer service excellence and managing complex customer situations
• practical and advanced project management
• performance management
• work health and safety, and
• coaching.
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Table 27: Training and development expenditure
Total cost
% of total salary
expenditure
Total training and development expenditure
$474 000
1.3%
Total organisational capacity building expenditure
$463 000
0.4%
Note: These figures include HECS costs.
WORK HEALTH AND SAFETY AND INJURY MANAGEMENT
Table 28: Work health and safety (WHS) comparative data
2013-14
2012-13
2011-12*
1. W
HS (previously OHS) legislative requirements (includes incidents involving students,
contractors and visitors)
Number of notifiable incidents (previously occurrences or injuries) pursuant to
WHS Act Part 3-Incident notification
0
0
13
(4 from students,
1 from public)
Number of notices served pursuant to WHS Act Part 10 Division 1 to 3
(previous OHS&W Act s35, s39 and s40)
0
0
3
Total number of new claimants who participated in the rehabilitation program
1
1
31
Total number of employees rehabilitated and reassigned to alternative duties
1
0
0
Total number of employees rehabilitated back to their original work
0
0
8
7
8
116
0.0038
.0039
0.0126
4
4
72
0
3
1
0
1
3
0
33
39
146
56
4303
2. Injury management legislative requirements
3. WorkCover action limits
Number of open claims as at 30 June 2014
Percentage of workers compensation expenditure over gross annual
remuneration
4. Number of injuries
Number of new workers compensation claims in the financial year
Number of:
• fatalities
• lost time injuries
• medical treatment only
Total number of whole working days lost
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Table 28: Work health and safety (WHS) comparative data continued
2013-14
2012-13
2011-12*
$37 151.69
$10 595.33
$333 220.75
Cost of all claims excluding lump sum payments
$85 942
$37 870
$1 682 940
Amount paid for lump sum payments (s42, s43, s44)
$21 370
$29 231
$1 371 170
$107 312
$67 101
$3 054 110
$0
$0
$52 081
$254 000
$320 000
$3 250 000
1.85
0.97
6.68
Psychological
Pressures
Body stressing
Body stressing
Manual Handling
Body stressing
Mental stress
5. Cost of workers compensation
Cost of new claims for the financial year
Total claims expenditure
Total amount recovered from external sources (s54)
Budget allocation for workers compensation
6. Trends
Injury frequency rate for new lost-time injury/disease for each million
hours worked
Most frequent cause (mechanism) of injury
Most expensive cause (mechanism) of injury
* Column three shows DFEEST and TAFE SA combined data to allow comparison against previous two financial years prior to the
TAFE SA separation from DFEEST on 31 October 2012.
7.11
MANAGING RISK AND FRAUD
As part of its risk management framework, the department has implemented processes for identifying and responding to the risks of
fraud, including any specific risks of fraud that have been identified, or account balances, classes of transactions or disclosures for which a
risk of fraud is likely to exist.
The department has established an internal audit and risk management and business continuity function through its Audit and Risk
Management Committee. This is supported by the department’s Internal Audit and Risk Management and Business Continuity Unit.
The Internal Audit Plan, which is reviewed by the Audit and Risk Management Committee and approved by the Chief Executive, addresses
a number of potential risk areas including internal controls over revenue, information and asset security and expenditure activity.
Complementing this work, the Director, Strategic Finance and Budgets is responsible for ongoing internal reconciling controls over
department revenue and expenditure and liaises with the Manager Internal Audit where abnormal variances are detected. The Strategic
Finance and Budgets section also works closely with the Internal Audit Unit to oversee the implementation and monitoring of DFEEST’s
Financial Management Compliance Program.
7.12
OVERSEAS TRAVEL
For the period 1 July 2013 to 30 June 2014 no departmental staff travelled overseas.
7.13RECONCILIATION
The department works closely with Reconciliation SA and other state government agencies to achieve the government’s commitment to
reconciliation, and has committed considerable funds to build an environment promoting decision making that is culturally inclusive and
involves Aboriginal people.
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RECONCILIATION ACTION PLAN
The department developed a new Reconciliation Action Plan, and was the first state government department to achieve a STRETCH
Reconciliation Action Plan endorsement by Reconciliation Australia. All targets, activities and outcomes of the department’s plan
incorporated STRETCH targets aimed at building on the good work already underway with a focus on achieving tangible and measurable
outcomes and longer term strategies are rigorously monitored. The plan further strengthens relationships, acknowledges and respects
Aboriginal culture, improves training, employment and procurement opportunities, and recruitment and retention of Aboriginal people.
The department consulted with a Kaurna Elder and Aboriginal employees to contribute towards the plan, with their recommendations
incorporated into the final plan.
RECONCILIATION WEEK
The department facilitated a variety of cultural activities and events enriched by both Aboriginal and non-Aboriginal employee
participation to celebrate Aboriginal culture during 2013-14.
In keeping with the National Reconciliation Week ‘Let’s Walk the Talk’ theme, the department hosted two signature events during
Reconciliation Week:
• t he Constitutional Recognition Workshop built on the information provided in the 2013 workshop series and attracted a prominent
guest speaker to provide employees with further insight and update on the constitutional reform, and
• a n Aboriginal Film Festival was hosted in partnership with five other government agencies which offered two film screenings, The
Sapphires and Utopia. This event was promoted to all staff within the five host departments and was well attended by staff members
and their families.
A number of low key, informal ‘tea and talk’ events were also held across the department during Reconciliation Week.
ANNIVERSARY OF APOLOGY DAY
The department continued to recognise the importance of the Anniversary of the Apology Day breakfast. This event was attended by
internal staff, key industry partners and members of the department’s Reconciliation Action Committee.
NAIDOC WEEK
Employees were encouraged to attend NAIDOC Week activities and events.
ABORIGINAL EMPLOYMENT STRATEGY 2010-2015
Work continued on the Aboriginal Employment Strategy 2010-2015 – Building a Culturally Inclusive Workforce, which aimed to increase
the participation of Aboriginal people in the department’s workforce.
7.14
REPORTING AGAINST THE CARERS RECOGNITION ACT 2005
The department promoted the Carers Recognition Act 2005 and the Carers Charter on its intranet site to ensure all employees had an
awareness and understanding of this information.
Carer information was also incorporated in the department’s online induction package and occurred through corporate services units
across the department.
7.15
REPORTING AGAINST THE WHISTLEBLOWERS PROTECTION ACT 1993
DFEEST appointed responsible officers for the purposes of the Whistleblowers Protection Act 1993 pursuant to Section 7 of the Public Sector
Act 2009. DFEEST reviewed its policy and procedures as a result of the introduction of the ICAC Act 2012. DFEEST received no whistleblowerrelated allegations during the year.
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7.16
URBAN DESIGN CHARTER
Urban design was integrated within the department’s core systems and procedures. Consultants, contract tenders and major contracts
were managed on behalf of the department by DPTI. DFEEST supported DPTI in the preparation of policies, including the impact of our
presence in the local community, with a view to integrating with the urban fabric so that a positive contribution could be made.
To initiate the engagement of consultants to undertake design work, DFEEST collaborated with DPTI to define and/or request specific
urban design principles associated with the project or request their investigation, including:
• ecologically sustainable development initiatives to be considered
• specific site issues such as cultural, political and heritage issues
• corporate parameters (relevant policies, standards and guidelines), and
• specific consultant services required (e.g. tree audits, traffic management surveys, disability access, Indigenous/cultural issues).
DFEEST interacted and communicated with the community through TAFE SA institutes and campuses. With respect to major projects,
the Public Works Committee and DPTI worked on behalf of the department to ensure exposure to a wide range of community views
and scrutiny.
7.17
VET STUDENT ACTIVITY
General note:
The tables and figures in this section are sourced from: NCVER, Australian vocational education and training statistics, Students and Courses 2013.
Unless otherwise stated.
In South Australia, there were 165 700 VET students in 2013, an increase of 16.3 per cent on 20121. Nationally, the number of VET students
decreased by 3.4 per cent in 2013. South Australia was the only jurisdiction to record an increase in 2013.
Table 29: VET students by provider type, South Australia and Australia, 2012 and 2013
South Australia
Provider type
Australia
2012
2013
Change
Change
TAFE & other government
88 100
94 000
6.7%
-5.4%
Private/non-TAFE
48 300
66 100
36.8%
-2.7%
6 100
5 600
-7.8%
14.9%
142 500
165 700
16.3%
-3.4%
Community education
All providers
Notes:
• Figures are rounded to the nearest 100
• Percentage changes are calculated on non-rounded figures
• Totals may not sum due to the effects of rounding
The 16.3 per cent increase in the number of VET students in South Australia between 2012 and 2013 includes:
• 7.8 per cent increase in young people (aged 15 to 24 years)
• 17.6 per cent increase in females
• 15.0 per cent decrease in indigenous people
• 12.1 per cent increase in people with disability, and
• 3.7 per cent increase in remote and very remote regions in South Australia.
1
The scope is VET delivery by TAFE institutes, registered community education providers and the publicly funded component of other registered providers. It
includes fee-for-service delivery by TAFE institutes but excludes VET delivered in schools where the delivery has been undertaken by schools, recreation, leisure
and personal enrichment activity, fee-for-service VET delivered by private providers, delivery undertaken at overseas campuses of Australian VET institutions and
credit transfer.
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20.0%
15.0%
% change
10.0%
5.0%
0.0%
-5.0%
-10.0%
-15.0%
-20.0%
15-24 years
Females
Indigenous
With a
disability
Remote and
very remote
All students
Figure 9: VET students in South Australia by cohort, percentage change between 2012 and 2013
South Australia accounted for 8.8 per cent of the VET students nationally (1.877 million students), which is above South Australia’s share
of the national population (7.2 per cent of the estimated resident population of Australia at 31 December 20132).
The VET participation rate of persons aged 15 to 64 in South Australia in 2013 was 14.8 per cent, above the national rate of 11.9 per cent.
The South Australian VET participation rate in 2013 increased by two percentage points on the 2012 rate.
3.4
%
39.9%
56.7%
TAFE & other government 56.7%
Private/non-TAFE SA providers 39.9%
Community education 3.4%
Figure 10: South Australian VET students in 2013 by provider type
The number of VET students in South Australia, funded by the Australian and State governments, increased by 21.9 per cent between
2012 and 2013. During the same period the number of VET students in South Australia funded by fee for service fell for both domestic
and international.
2
Source: ABS Cat. No 3101.0—December 2013
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Table 30: VET students by fund source, South Australia and Australia, 2012 and 2013
South Australia
Fund Source
Commonwealth & state
Fee-for-service - domestic
Fee-for-service - international
All fund sources
Australia
2012
2013
Change
Change
123 300
150 300
21.9%
-3.9%
17 400
14 200
-18.6%
-1.2%
1 800
1 200
-30.2%
-1.7%
142 500
165 700
16.3%
-3.4%
Notes:
• Figures are rounded to the nearest 100
• Percentage changes are calculated on non-rounded figures
• Totals may not sum due to the effects of rounding
0.7%
8.6%
90.7%
Commonwealth & state 90.7%
Fee-for-service - domestic 8.6%
Fee-for-service - international 0.7%
Figure 11: South Australian VET students in 2013 by fund source
50.0%
% change
40.0%
30.0%
20.0%
10.0%
0.0%
Diploma
and higher
Certificate
IV
Certificate
III
Certificate
II
Certificate
I
All
qualifications
Figure 12: VET students in South Australia, percentage change, by qualification level, between 2012 and 2013
Note: All qualifications includes non-Australian Qualifications Framework (AQF) enrolments
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07 APPENDICES
12.0%
12.8%
6.1%
17.7%
Diploma and higher 12.8%
Certificate IV 17.7%
20.1%
Certificate III 31.3%
Certificate II 20.1%
31.3%
Certificate I 6.1%
Non-AQF 12.0%
Figure 13: South Australian VET students in 2013 by qualification levels
The largest percentage increase in VET students in South Australia between 2012 and 2013 was in the age group 25 to 44 years, with an
increase of 23.6 per cent.
Table 31: VET students by age, South Australia and Australia, 2012 and 2013
South Australia
Age groups (years)
Australia
2012
2013
Change
Change
15 - 19
29 100
29 800
2.5%
-7.1%
20 - 24
24 800
28 300
14.1%
-2.1%
25 - 44
55 200
68 200
23.6%
-1.6%
45 - 64
30 000
35 700
18.7%
-3.4%
2 700
3 100
13.1%
18.7%
Other
600
600
-0.8%
-26.3%
Total
142 500
165 700
16.3%
-3.4%
65 +
Notes:
•
•
•
•
Other includes 14 years and under and not known
Figures are rounded to the nearest 100
Percentage changes are calculated on non-rounded figures
Totals may not sum due to the effects of rounding
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1.9%
0.4%
18.0%
21.5%
15 - 19 years 18%
17.7%
20 - 24 years 17.1%
25 - 44 years 41.2%
45 - 64 years 21.5%
41.2%
65 years and over 1.9%
Others 0.4%
Figure 14: South Australian VET students in 2013 by age group
The number of VET students increased across all regions in South Australia between 2012 and 2013. The largest percentage increase
during this period was in the major city region, with an increase of 18.7 per cent.
In 2013, the majority of VET students in South Australia were in the major city region, with 65.5 per cent of the total.
Table 32: VET students by remoteness region, South Australia and Australia, 2012 and 2013
South Australia
Number
Australia
Percentage
Percentage
2012
2013
Share of
total
Change
Share of
total
Change
Major cities
91 500
108 600
65.5%
18.7%
60.2%
-1.4%
Inner regional
18 100
20 200
12.2%
12.1%
22.5%
-6.3%
Outer regional
21 500
23 700
14.3%
10.3%
11.1%
-6.4%
Remote
5 600
5 600
3.4%
0.6%
2.1%
-8.3%
Very remote
1 800
2 000
1.2%
13.5%
1.2%
-10.0%
Overseas
2 000
1 300
0.8%
-36.5%
1.9%
6.1%
Not known
2 100
4 200
2.5%
104.9%
1.0%
-12.5%
142 500
165 700
100.0%
16.3%
100.0%
-3.4%
Regions
Total
Notes:
• Figures are rounded to the nearest 100
• Percentage changes are calculated on non-rounded figures
• Totals may not sum due to the effects of rounding
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The number of VET students in South Australia increased between 2012 and 2013 across most of the fields of education, with the
exception of architecture and building. The largest percentage increase during this period was in the natural and physical sciences field
of education, with an increase of 63.9 per cent.
The largest proportion of VET students in South Australia were in the management and commerce field of education, with 19.5 per cent
of total.
Table 33: VET students by fields of education, South Australia and Australia, 2012 and 2013
South Australia
Number
Australia
Percentage
Percentage
2012
2013
Share of
total
Change
Share of
total
Change
700
1 100
0.7%
63.9%
0.5%
14.4%
2 500
3 500
2.1%
42.4%
2.0%
5.7%
22 700
26 400
15.9%
16.0%
16.9%
-2.1%
Architecture and building
7 500
7 500
4.5%
-0.6%
6.8%
1.2%
Agriculture, environmental and related studies
4 900
5 100
3.1%
3.7%
3.3%
-11.7%
Health
5 600
7 700
4.7%
37.1%
5.0%
-6.9%
Education
4 700
6 300
3.8%
32.2%
3.7%
0.1%
Management and commerce
31 200
32 300
19.5%
3.6%
18.7%
-16.1%
Society and culture
21 100
28 800
17.4%
36.5%
13.7%
1.9%
2 200
2 800
1.7%
29.1%
2.4%
-13.6%
Food, hospitality and personal services
10 100
14 900
9.0%
47.4%
9.2%
-10.3%
Mixed field programs
19 100
20 000
12.1%
4.5%
12.3%
8.5%
Subject only - no field of education
10 200
9 500
5.7%
-7.3%
5.5%
29.2%
142 500
165 700
100.0%
16.3%
100.0%
-3.4%
Field of education
Natural and physical sciences
Information technology
Engineering and related technologies
Creative arts
Total
Notes:
• Figures are rounded to the nearest 100
• Percentage changes are calculated on non-rounded figures
• Totals may not sum due to the effects of rounding
FULL-YEAR TRAINING EQUIVALENTS
In 2013, there were 61 300 full-year training equivalents (FYTE) in South Australia, an increase of 24.7 per cent on 20123. Nationally FYTE
decreased by 2.7 per cent in 2013; South Australia was the only jurisdiction to record an increase in 2013.
3
FYTE of one represents the activity of a student who is training on a full-time basis for one year. These units are based on annual hours of training (720 hours = 1 FYTE)
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Table 34: VET FYTE by provider type, South Australia and Australia, 2012 and 2013
South Australia
Number
Australia
Percentage
Percentage
2012
2013
Share of
total
Change
Share of
total
Change
TAFE & other government
30 500
32 800
53.5%
7.7%
67.8%
-3.5%
Private/non-TAFE
18 300
28 100
45.8%
53.6%
28.3%
-0.8%
400
400
0.7%
-1.0%
3.9%
-1.8%
49 200
61 300
100.0%
24.7%
100.0%
-2.7%
Provider type
Community education
All providers
Notes:
• Figures are rounded to the nearest 100
• Percentage changes are calculated on non-rounded figures
• Totals may not sum due to the effects of rounding
0.7%
45.8%
53.5%
TAFE & other government 53.5%
Private/non-TAFE 45.8%
Community education 0.7%
Figure 15: South Australian FYTE in 2013 by provider type
Table 35: VET FYTE by fund source, South Australia and Australia, 2012 and 2013
South Australia
Number
Australia
Percentage
Percentage
2012
2013
Share of
total
Change
Share of
total
Change
44 700
58 600
95.5%
30.9%
86.3%
-3.2%
Fee-for-service - domestic
3 300
2 000
3.2%
-39.3%
10.7%
3.4%
Fee-for-service - international
1 200
800
1.3%
-34.7%
3.0%
-6.1%
49 200
61 300
100.0%
24.7%
100.0%
-2.7%
Fund source
Commonwealth & state
All fund sources
Notes:
• Figures are rounded to the nearest 100
• Percentage changes are calculated on non-rounded figures
• Totals may not sum due to the effects of rounding
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HOURS OF DELIVERY
In 2013, there were 44.1 million hours of VET training delivered in South Australia, an increase of 24.7 per cent on 2012. VET hours decreased
nationally by 2.7 per cent in 2013. South Australia was the only jurisdiction to record an increase in 2013.
The 24.7 per cent increase in the number of VET hours in South Australia between 2012 and 2013 includes:
• 53.6 per cent increase by private/non-TAFE providers
• 7.7 per cent increase by TAFE SA
• 1.0 per cent fall in community education providers
Table 36: VET hours by provider type, South Australia and Australia, 2012 and 2013 (‘000 000)
South Australia
Number
Australia
Percentage
Percentage
2012
2013
Share of
total
Change
Share of
total
Change
TAFE & other government
21.931
23.623
53.5%
7.7%
67.8%
-3.5%
Private/non-TAFE
13.160
20.207
45.8%
53.6%
28.3%
-0.8%
0.312
0.309
0.7%
-1.0%
3.9%
-1.8%
35.403
44.14
100.0%
24.7%
100.0%
-2.7%
Provider type
Community education
All providers
Notes:
• Percentage changes are calculated on non-rounded figures
• Totals may not sum due to the effects of rounding
The number of VET hours in South Australia funded by the Australian and State governments increased by 30.9 per cent between
2012 and 2013. During the same period the number of VET students in South Australia funded by fee for service fell for both domestic
and international.
Table 37: VET hours by fund source, South Australia and Australia, 2012 and 2013 (‘000 000)
South Australia
Number
Australia
Percentage
Percentage
2012
2013
Share of
total
Change
Share of
total
Change
32.202
42.157
95.5%
30.9%
86.3%
-3.2%
Fee-for-service - domestic
2.349
1.426
3.2%
-39.3%
10.7%
3.4%
Fee-for-service - international
0.852
0.557
1.3%
-34.7%
3.0%
-6.1%
35.403
44.14
100.0%
24.7%
100.0%
-2.7%
Fund source
Commonwealth & state
All fund sources
Notes:
• Percentage changes are calculated on non-rounded figures
• Totals may not sum due to the effects of rounding
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COURSE ENROLMENTS
In 2013, there were 206 200 course enrolments in South Australia, an increase of 23.2 per cent on 2012. Course enrolments decreased
nationally by 3.1 per cent in 2013. South Australia had the highest growth rate in the nation, with the Australian Capital Territory and
Western Australia the only other jurisdictions to record an increase.
Table 38: VET course enrolments by provider type, South Australia and Australia, 2012 and 2013
South Australia
Provider type
TAFE & other government
Private/non-TAFE
Community education
All providers
Australia
2012
2013
Change
Change
113 800
127 200
11.7%
-3.5%
53 500
79 000
47.7%
-0.9%
Less than 100
0
–
-11.3%
167 300
206 200
23.2%
-3.1%
Notes:
• Figures are rounded to the nearest 100
• Percentage changes are calculated on non-rounded figures
• Totals may not sum due to the effects of rounding
38.3%
61.7%
TAFE & other government 61.7%
Private/non-TAFE 38.3%
Figure 16: VET course enrolments in South Australia in 2013 by provider type
VET course enrolments in South Australia increased across all AQF qualification levels between 2012 and 2013. The largest percentage
increase during this period was at Certificate II, with an increase of 52.5 per cent.
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60.0%
50.0%
% change
40.0%
30.0%
20.0%
10.0%
0.0%
Diploma
and higher
Certificate
IV
Certificate
III
Certificate
II
Certificate
I
All
qualifications
Figure 17: VET course enrolments in South Australia, percentage change between 2012 and 2013
Note: All qualifications includes non-AQF enrolments
7.2%
11.7%
9.4%
16.8%
Diploma and higher 11.7%
Certificate IV 16.8%
23.8%
Certificate III 31.3%
Certificate II 23.8%
31.3%
Certificate I 9.4%
Non-AQF 7.2%
Figure 18: South Australian VET course enrolments in 2013, by qualification levels
SUBJECT ENROLMENTS
In 2013, there were 1 336 500 subject enrolments in South Australia, an increase of 20.5 per cent on 2012. Subject enrolments decreased
nationally by 3.9 per cent in 2013. South Australia was the only jurisdiction to record an increase in 2013.
Table 39: VET subject enrolments by provider type, South Australia and Australia, 2012 and 2013
South Australia
Number
Australia
Percentage
Percentage
2012
2013
Share of
total
Change
Share of
total
Change
TAFE & other government
637 700
672 900
50.4%
5.5%
64.4%
-4.1%
Private/non-TAFE
458 800
651 300
48.7%
42.0%
31.9%
-3.0%
12 700
12 200
0.9%
-3.6%
3.7%
-7.1%
1 109 100
1 336 500
100.0%
20.5%
100.0%
-3.9%
Provider type
Community education
All providers
Notes:
• Figures are rounded to the nearest 100
• Percentage changes are calculated on non-rounded figures
• Totals may not sum due to the effects of rounding
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COURSE COMPLETIONS
In 2012, there were 43 900 course completions in South Australia, an increase of 22.9 per cent on 20114. Nationally, the number of course
completions increased by 12.3 per cent in 2012. South Australia had the second-highest growth rate in the nation behind Victoria
(32.6 per cent).
The number of course completions by TAFE SA increased by 19.3 per cent between 2011 and 2012 in South Australia. For private/non-TAFE
providers course completions increased by 28.2 per cent during the same period.
Table 40: Course completions by provider type, South Australia and Australia, 2011 and 2012
South Australia
Number
Australia
Percentage
Percentage
2012
2013
Share of
total
Change
Share of
total
Change
TAFE & other government
21 300
25 400
57.8%
19.3%
59.9%
6.0%
Private/non-TAFE
14 500
18 600
42.2%
28.2%
36.1%
23.4%
n.a.
n.a.
n.a.
n.a.
4.0%
34.1%
35 700
43 900
100.0%
22.9%
100.0%
12.3%
Provider type
Community education
All providers
Notes:
• Figures are rounded to the nearest 100
• Percentage changes are calculated on non-rounded figures
• Totals may not sum due to the effects of rounding
• n.a. = not applicable
Course completions in Certificate I increased by 47 per cent between 2011 and 2012 in South Australia. The next highest percentage
increase was in Certificate II, with an increase of 46.9 per cent.
60.0%
50.0%
% change
40.0%
30.0%
20.0%
10.0%
0.0%
Diploma
and higher
Certificate
IV
Certificate
III
Certificate
II
Certificate
I
All
qualifications
Figure 19: VET course completions in South Australia, percentage change between 2011 and 2014
4
NCVER collects the number of course completions for a full year over a two year period and this leads to a one year lag in reporting of the data. Therefore, 2012 figures
are the latest available.
P 60
07 APPENDICES
5.2
%
16.3%
21.8%
23.2%
Diploma and higher 16.3%
Certificate IV 23.2%
Certificate III 33.5%
33.5%
Certificate II 21.8%
Certificate I 5.2%
Figure 20: South Australian VET course completions in 2012, by qualification levels
Preliminary course completions figures for 2013, estimated by the department, shows that in South Australia there were an estimated
53 100 course completions. Of the estimated completions:
• 57 per cent were provided by private/non-TAFE
• 43 per cent were provided by TAFE & other government.
Table 41: Course completions by provider type, South Australia, 2012 and 2013
South Australia
Number
Percentage
2012
2013
(estimated)
Share of
total
Change
TAFE & other government
25 400
22 800
43.0%
-10.2%
Private/non-TAFE
18 600
30 300
57.0%
63.2%
n.a.
n.a.
n.a.
n.a.
43 900
53 100
100.0%
20.8%
Provider type
Community education
All providers
Notes:
• Figures are rounded to the nearest 100
• Totals may not sum due to the effects of rounding
• n.a. = not applicable
Source: 2012 - NCVER, Australian vocational education and training statistics, Students and Courses 2013; 2013 – estimated by the
Department of State Development
P 61
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
07 APPENDICES
7.18
WEBSITE LISTING
The following websites are maintained by the department:
Site Name
Internet Address
Apprenticeship and Traineeship Online Application System
www.atlas.dfeest.sa.gov.au
Building Family Opportunities
www.crm.dfeest.sa.gov.au/BFO/main.aspx
Checkbox
www.checkbox.dfeest.sa.gov.au
Online Application System
www.oasys.dfeest.sa.gov.au
Registrar of Approved Employers
www.TrainingSkillsCommission.sa.gov.au
Skills for All
www.skills.sa.gov.au
Student Training Enrolment Logistics Application
www.stela.dfeest.sa.gov.au
Training and Skills Commission
www.tasc.sa.gov.au
Training Provider Online Application Form
www.sfaproviderapplication.training.sa.gov.au
Vocational Education Training Application
www.atis.dfeest.sa.gov.au
P 62
08
FINANCIAL STATEMENTS
INDEPENDENT AUDIT REPORT
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2014
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2014
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2014
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2014
DISAGGREGATED DISCLOSURES - EXPENSES AND INCOME FOR THE YEAR
ENDED 30 JUNE 2014
DISAGGREGATED DISCLOSURES - ASSETS AND LIABILITIES FOR THE YEAR
ENDED 30 JUNE 2014
DISAGGREGATED DISCLOSURES - EXPENSES AND INCOME FOR THE YEAR
ENDED 30 JUNE 2013
DISAGGREGATED DISCLOSURES - ASSETS AND LIABILITIES FOR THE YEAR
ENDED 30 JUNE 2013
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
P 63
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
P 64
08 FINANCIAL STATEMENTS
P 65
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
P 66
08 FINANCIAL STATEMENTS
P 67
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
P 68
08 FINANCIAL STATEMENTS
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2014
Note
No.
2014
$’000
2013
$’000
5
6
7
8
9
16
10
53 690
309 060
34 903
130 547
21 905
156
30 044
138 638
270 936
57 326
97 091
22 442
12
7 789
580 305
594 234
31 475
44 330
2 631
425
4 015
44 222
64 841
6 020
534
1 786
82 876
117 403
497 429
476 831
506 219
(1 411)
434 139
(8 247)
504 808
425 892
7 379
(50 939)
(26 302)
163
(9 298)
(349)
Total other comprehensive income
(26 139)
(9 647)
Total comprehensive result
(18 760)
(60 586)
Expenses
Employee benefits
Vet funding
Supplies and services
Grants and subsidies
Depreciation and amortisation
Net loss from the disposal of non-current assets
Other expenses
Total expenses
Income
Commonwealth grants
Fees and charges
Other grants and contributions
Investment income
Other income
12
13
14
15
17
Total income
Net cost of providing services Revenues from/payments to SA Government
Revenues from SA Government
Less payments to SA Government
18
18
Total revenues from/payments to SA Government
Net result
Other comprehensive income
Items that will not be reclassified to net result
Changes in revaluation surplus
Change in financial assets available-for-sale revaluation surplus
30
The net result and total comprehensive result are attributable to the SA Government as owner.
P 69
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2014
Note
No.
2014
$’000
2013
$’000
19
20
21
41 560
18 159
41 090
62 712
10 024
9 570
100 809
82 306
41
6 103
778 017
12 458
50
5 940
804 109
11 179
Total non-current assets
796 619
821 278
Total assets
897 428
903 584
50 155
5 469
208
658
97 788
7 022
240
495
56 490
105 545
896
9 651
933
527
12 919
1 080
Total non-current liabilities
11 480
14 526
Total liabilities
67 970
120 071
829 458
783 513
324 474
3 499
328 011
173 474
313 387
3 336
354 313
112 477
829 458
783 513
Current assets
Cash and cash equivalents
Receivables
Non-current assets classified as held for sale
Total current assets
Non-current assets
Receivables
Investments
Property, plant and equipment
Intangibles
20
29
22
23
Current liabilities
Payables
Employee benefits
Provisions
Other current liabilities
25
26
27
28
Total current liabilities
Non-current liabilities
Payables
Employee benefits
Provisions
25
26
27
Net assets
Equity
Retained Earnings
Financial asset available-for-sale revaluation surplus
Revaluation surplus
Contributed capital
30
30
30
30
Total equity
The total equity is attributable to the SA Government as owner.
Unrecognised contractual commitments
Contingent assets and liabilities
The above statement should be read in conjunction with the accompanying notes.
31
32
P 70
08 FINANCIAL STATEMENTS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2014
2014
$’000
2013
$’000
Employee benefit payments
Payments to VET providers
Payments for supplies and services
Payments of grants and subsidies
GST paid to the Australian Taxation Office (ATO)
Payments for paid parental leave scheme
Other payments
(54 769)
(328 469)
(85 717)
(130 548)
(4 730)
(133)
(28 201)
(142 501)
(235 461)
(73 305)
(89 499)
(6 830)
(204)
(7 703)
Cash used in operations
(632 567)
(555 503)
Commonwealth grants
Fees and charges
Other grants and contributions
Interest received
GST recovered from the ATO
Dividends received
Receipts for paid parental leave scheme
Other receipts
31 475
40 486
2 631
16 961
425
150
4 034
44 222
67 717
4 606
11
21 042
522
170
1 175
Cash generated from operations
96 162
139 465
Receipts from SA Government
Payments to SA Government
506 219
(1 411)
434 139
(8 247)
Cash generated from SA Government
504 808
425 892
(31 597)
9 854
Purchase of property, plant and equipment
Purchase of intangibles
(49 222)
(2 750)
(64 921)
(895)
Cash used in investing activities
(51 972)
(65 816)
Proceeds from the sale of property, plant and equipment
1 420
-
Cash generated from investing activities
1 420
-
(50 552)
(65 816)
Note
No.
Cash flows from operating activities
Cash outflows
Cash inflows
Cash flows from SA Government
Net Cash provided by operating activities
36
Cash flows from investing activities
Cash outflows
Cash inflows
Net cash used in investing activities
P 71
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
STATEMENT OF CASH FLOWS CONTINUED
FOR THE YEAR ENDED 30 JUNE 2014
2014
$’000
2013
$’000
Cash transferred as a result of restructuring activities
-
(60 109)
Cash used in financing activities
-
(60 109)
Capital contributions from Government
60 997
112 477
Cash generated from financing activities
60 997
112 477
Net cash provided by financing activities
60 997
52 368
(21 152)
(3 594)
62 712
66 306
41 560
62 712
Note
No.
Cash flows from financing activities
Cash outflows
Cash inflows
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 July 2013
Cash and cash equivalents at 30 June 2014
19
P 72
08 FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2014
Revaluation
surplus
$’000
Financial
asset
availablefor-sale
revaluation
surplus
$’000
Retained
earnings
$’000
Contributed
capital
$’000
Total
$’000
367 900
3 685
380 489
-
752 074
-
-
(51 156)
-
(51 156)
30
-
(349)
-
-
(349)
22(a)
(9 298)
-
-
-
(9 298)
22(a)
30
(4 289)
-
-
4 289
-
112 477
112 477
33
-
-
(20 452)
-
(20 452)
Total comprehensive result 2012-13
(13 587)
(349)
(67 319)
112 477
31 222
Balance at 30 June 2013
354 313
3 336
313 170
112 477
783 296
-
-
217
-
217
354 313
3 336
313 387
112 477
783 513
-
-
7 379
-
7 379
30
-
163
-
-
163
22(a)
(26 302)
-
-
-
(26 302)
30
-
-
-
60 997
60 997
33
-
-
3 708
-
3 708
Total comprehensive result 2013-14
(26 302)
163
11 087
60 997
45 945
Balance at 30 June 2014
328 011
3 499
324 474
173 474
829 458
Note
No.
Balance at 30 June 2012
Net result for 2012-13
Change in financial assets available-for-sale
revaluation surplus
Loss on revaluation of property assets during
2012-13
Write off of asset revaluation reserve libraries
Contributed capital increases
Net assets transferred as a result of
administrative restructure
Error correction
Restated balance at 30 June 2013
Net result for 2013-14
Change in financial assets available-for-sale
revaluation surplus
Loss on revaluation of property assets during
2013-14
Contributed capital increases
Liabilities transferred as a result of administrative
restructure
All changes in equity are attributable to the SA Government as owner.
P 73
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
P 74
P 75
482 362
Total expenses
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
Net result
Revenues from SA Government
Payments to SA Government
Revenues from/payments to SA Government
7 379
415 283
(1 411)
406 493
75 869
Total income
Net cost of providing services
29 379
44 306
1 012
425
747
Commonwealth grants
Fees and charges
Other grants and contributions
Investment income
Other income
Income
14 281
309 060
17 336
89 591
21 905
156
30 033
Vocational
Education
and
Training
$’000
Employee benefits
VET funding
Supplies and services
Grants and subsidies
Depreciation and amortisation
Net loss from the disposal of non-current assets
Other expenses
Expenses
Expenses/Income
FOR THE YEAR ENDED 30 JUNE 2014
-
49 207
-
49 207
5 377
1 838
1 048
2 491
54 584
19 362
13 793
21 429
-
Learning,
Workforce
Participation
& Workforce
Development
$’000
-
15 949
-
15 949
286
106
24
156
16 235
14 702
1 525
3
5
Quality
Assurance
and
Regulatory
Services
$’000
Employment and Skills Formation
DISAGGREGATED DISCLOSURES - EXPENSES AND INCOME -
5 018
-
5 018
353
227
126
5 371
1 812
297
3 260
2
International
and Higher
Education
$’000
-
12 526
-
12 526
590
196
394
13 116
2 083
1 076
9 955
2
Science and
Innovation
$’000
-
2 510
-
2 510
401
152
148
101
2 911
1 450
876
583
2
Information
Economy
$’000
-
5 726
-
5 726
-
-
5 726
5 726
-
Bioscience
Industry
Development
$’000
Science, Technology and
Information Economy
7 379
506 219
(1 411)
497 429
82 876
31 475
44 330
2 631
425
4 015
580 305
53 690
309 060
34 903
130 547
21 905
156
30 044
$’000
Total
08 FINANCIAL STATEMENTS
799 806
45 082
Total liabilities
Net assets
42 752
1 945
385
844 888
13 323
41 090
778 017
12 458
Vocational
Education
and
Training
$’000
Payables
Employee benefits
Provisions
Other liabilities
Liabilities
Total assets
Cash & cash equivalents
Receivables
Non-current assets classified as held for sale
Investments
Property, plant & equipment
Intangibles
Assets
Assets/Liabilities
FOR THE YEAR ENDED 30 JUNE 2014
(4 906)
5 096
2 228
2 868
-
190
190
-
Learning,
Workforce
Participation
& Workforce
Development
$’000
(2 754)
2 763
349
2 414
-
9
9
-
Quality
Assurance
and
Regulatory
Services
$’000
5 725
467
125
342
-
6 192
89
6 103
-
International
and Higher
Education
$’000
Employment and Skills Formation
DISAGGREGATED DISCLOSURES - ASSETS & LIABILITIES
(2 316)
2 410
2 039
371
-
94
94
-
Science
and
Innovation
$’000
(347)
418
145
273
-
71
71
-
Information
Economy
$’000
(284)
284
284
-
-
-
Bioscience
Industry
Development
$’000
Science, Technology and
Information Economy
34 534
11 450
3 129
6 907
1 141
273
45 984
41 560
4 424
-
$’000
General/
Not
attributable
829 458
67 970
51 051
15 120
1 141
658
897 428
41 560
18 200
41 090
6 103
778 017
12 458
$’000
Total
08 FINANCIAL STATEMENTS
P 76
P 77
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
407 938
Net cost of providing services
368 031
(8 247)
(48 154)
Revenues from SA Government
Payments to SA Government
Net result
Revenues from/payments to SA Government
107 661
Total income
Commonwealth grants
Student and other fees and charges
Other grants and contributions
Investment income
Other income
41 201
63 826
2 100
534
-
515 599
Total expenses
Income
110 954
270 936
47 865
55 604
22 442
12
7 786
Vocational
Education
and
Training
$’000
Employee benefits
Vet funding
Supplies and services
Grants and subsidies
Depreciation and amortisation
Net loss from the disposal of non-current assets
Other expenses
Expenses
Expenses/Income
FOR THE YEAR ENDED 30 JUNE 2013
(2 537)
37 676
-
40 213
5 643
2 596
61
2 777
209
45 856
13 557
6 982
25 317
-
Learning,
Workforce
Development
and
Employment
$’000
(113)
9 216
-
9 329
400
286
114
9 729
9 148
554
25
2
Regulatory
Services
$’000
Employment and Skills Formation
DISAGGREGATED DISCLOSURES - EXPENSES AND INCOME (19)
1 676
-
1 695
2 350
157
989
1 204
4 045
1 579
457
2 008
1
International
and Higher
Education
$’000
(15)
9 719
-
9 734
174
34
140
9 908
1 256
745
7 907
-
Science and
Innovation
$’000
(101)
1 698
-
1 799
1 175
425
477
154
119
2 974
2 144
723
107
-
Information
Economy
$’000
-
6 123
-
6 123
-
-
6 123
6 123
-
Bioscience
Industry
Development
$’000
Science, Technology and
Information Economy
(50 939)
434 139
(8 247)
476 831
117 403
44 222
64 841
6 020
534
1 786
594 234
138 638
270 936
57 326
97 091
22 442
12
7 789
$’000
Total
08 FINANCIAL STATEMENTS
831 496
Total assets
(5 061)
5 138
2 186
2 952
-
77
77
-
Learning,
Workforce
Development
and
Employment
$’000
(2 743)
2 755
286
2 469
-
12
12
-
Regulatory
Services
$’000
7 374
289
65
224
-
7 663
1 723
5 940
-
International
and Higher
Education
$’000
Employment and Skills Formation
(553)
578
255
323
-
25
25
-
Science
and
Innovation
$’000
(721)
726
226
500
-
5
5
-
Information
Economy
$’000
-
-
-
-
-
Bioscience
Industry
Development
$’000
Science, Technology and
Information Economy
Correction of error: Cash (Note 19), Receivables (Note 20), Payables (Note 25) and Other Liabilities (Note 28) comparatives have changed due to prior period corrections.
745 266
86 230
Total liabilities
Net assets
83 801
2 026
403
Payables
Employee benefits
Provisions
Other liabilities
Liabilities
6 638
9 570
804 109
11 179
Vocational
Education
and
Training
$’000
Cash & cash equivalents
Receivables
Non-current assets classified as held for sale
Investments
Property, plant & equipment
Intangibles
Assets
Assets/Liabilities
FOR THE YEAR ENDED 30 JUNE 2013
DISAGGREGATED DISCLOSURES - ASSETS & LIABILITIES
39 951
24 355
11 496
11 447
1 320
92
64 306
62 712
1 594
-
$’000
General/
Not
attributable
783 513
120 071
98 315
19 941
1 320
495
903 584
62 712
10 074
9 570
5 940
804 109
11 179
$’000
Total
08 FINANCIAL STATEMENTS
P 78
08 FINANCIAL STATEMENTS
NOTE INDEX
Agency objectives and funding
Summary of significant accounting policies
Changes in accounting policies
Activities and sub-activities
Note 1
Note 2
Note 3
Note 4
EXPENSE NOTES
Employee benefits
Vet funding
Supplies and services
Grants and subsidies
Depreciation and amortisation
Other expenses
Auditor's remuneration
Note 5
Note 6
Note 7
Note 8
Note 9
Note 10
Note 11
INCOME NOTES
Commonwealth grants
Fees and charges
Other grants and contributions
Investment income
Net loss from the disposal of non-current assets
Other income
Revenues from/payments to SA Government
Note 12
Note 13
Note 14
Note 15
Note 16
Note 17
Note 18
ASSET NOTES
Cash and cash equivalents Receivables Non-current assets classified as held for sale Property, plant and equipment
Intangibles
Fair value measurement
Investments Note 19
Note 20
Note 21
Note 22
Note 23
Note 24
Note 29
LIABILITY NOTES
Payables
Employee benefits
Provisions
Other liabilities
Note 25
Note 26
Note 27
Note 28
EQUITY NOTES
Equity
Note 30
OTHER NOTES
Unrecognised contractual commitments
Contingent assets and liabilities
Transferred functions
After balance day events
Remuneration of board and committee members
Cash flow reconciliation
Financial instruments
Administered items
P 79
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
Note 31
Note 32
Note 33
Note 34
Note 35
Note 36
Note 37
Note 38
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
NOTE 1
AGENCY OBJECTIVES AND FUNDING
A)OBJECTIVES
The objective of DFEEST was to help people build and enhance their skills and education for South Australia to be a smarter and more
innovative state.
DFEEST played a central role in supporting the government’s strategic priorities of ‘growing advanced manufacturing’, ‘realising the
benefits of the mining boom for all’, ‘creating a vibrant city’, ‘every chance for every child’ and ‘premium food and wine from our clean
environment’.
The department undertook a range of functions in order to meet its objectives and contribute to a strong and sustainable economic
future for South Australia. These included:
• coordinating and investing in high quality publicly funded VET
• building skills through workforce planning and skills development programs
• increasing the workforce development and planning culture in South Australian workplaces
• regulation, administration and funding of apprenticeships and traineeships
• managing state funded employment and training support programs
• supporting the government’s strategic direction in the higher education sector
• d
eveloping policies and strategies, and delivering programs, that create opportunities for Aboriginal people, young people, people
with a disability and older workers
• fostering innovation through applied science and research to support technology transfer to industry, and
• promoting and supporting digital and technology developments within business, industry and community sectors.
B)FUNDING
The department is predominantly funded by State Government appropriations supplemented by Commonwealth grants. In addition
income is generated from fees and charges.
The financial activities of the department are primarily conducted through a Special Deposit Account with the Department of Treasury
and Finance pursuant to Section 8 of the Public Finance and Audit Act 1987. The Special Deposit Account is used for funds provided by State
Government appropriation, Commonwealth grants and revenues from fees and charges.
C) PRINCIPLES OF CONSOLIDATION
Associates
Associates are all entities over which the department has significant influence but not control, generally accompanying a shareholding of
between 20 per cent and 50 per cent of the voting rights.
The Minister for Employment, Higher Education and Skills has a 100 per cent interest in Austraining International Pty Ltd. Although
the Minister has control over Austraining it is not considered part of the department’s operations. The department cannot influence
the decisions of Austraining, nor can the department dominate the financial and operational policies of Austraining. Consequently,
Austraining has not been consolidated in the accounts nor disclosed as an Associate. The value of Austraining is shown in the Statement
of Financial Position under Investments.
Details of the investment in Austraining are set out in Note 29.
The Minister also has a 25 per cent interest in SABRENet. SABRENet was registered on 28 September 2005 as a non-profit company
limited by guarantee and has been recognised by the ATO as a tax exempt entity. The founding members are the three South Australian
Universities and the South Australian Government. The objects for which the company was established are to be a non-profit institution
to further the use of advanced data networking for the conduct of research and education in South Australia for the benefit of South
Australia and for the purposes of economic and social advancement in Australia generally. While the Minister has significant influence over
SABRENet, the Minister’s interest in SABRENet is limited to the Minister’s use of SABRENet’s asset (the network). That is, the Minister receives
no return for its interest in SABRENet. SABRENet is not accounted for using the equity method as the Minister does not have access to the
residual assets of the entity.
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08 FINANCIAL STATEMENTS
NOTE 2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A)
STATEMENT OF COMPLIANCE
The department has prepared these financial statements in compliance with section 23 of the Public Finance and Audit Act 1987.
The financial statements are general purpose financial statements. The accounts have been prepared in accordance with relevant
Australian Accounting Standards and comply with Treasurer's Instructions and Accounting Policy Statements promulgated under the
provision of the Public Finance and Audit Act 1987.
The department has applied Australian Accounting Standards that are applicable to not-for-profit entities, as the department is a not-forprofit entity.
Australian Accounting Standards and interpretations that have recently been issued or amended but are not yet effective have not been
adopted by the department for the reporting period ending 30 June 2014. Refer Note 3.
B) BASIS OF PREPARATION
The preparation of the financial statements requires:
• t he use of certain accounting estimates and requires management to exercise its judgement in the process of applying the
department’s accounting policies. The areas involving a higher degree of judgement or where assumptions and estimates are
significant to the financial statements are outlined in the applicable notes
• a ccounting 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 are reported
• c ompliance with accounting policy statements issued pursuant to section 41 of the Public Finance and Audit Act 1987. In the interest
of public accountability and transparency the Accounting Policy Statements require the following note disclosures, that have been
included in these financial statements:
a. r evenues, expenses, financial assets and liabilities where the counterparty/transaction is with an entity within the SA Government
as at reporting date, classified according to their nature. A threshold of $100 000 for separate identification of these items applies
b. expenses incurred as a result of engaging consultants (as reported in the Statement of Comprehensive Income)
c. e mployees whose normal remuneration is equal to or greater than the base executive remuneration level (within $10 000
bandwidths) and the aggregate of the remuneration paid or payable or otherwise made available, directly or indirectly by the
entity to those employees
d. b
oard/committee member and remuneration information, where a board/committee member is entitled to receive income from
membership other than a direct out-of-pocket reimbursement, and
e. employee targeted voluntary separation package (TVSP) information.
The department’s Statement of Comprehensive Income, Statement of Financial Position and Statement of Changes in Equity have been
prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets that have been valued in
accordance with the valuation policy applicable.
The Statement of Cash Flows has been prepared on a cash basis.
The financial statements have been prepared based on a twelve month period and presented in Australian currency. The accounting
policies set out below have been applied in preparing the financial statements for the year ended 30 June 2014 and the comparative
information presented for the year ended 30 June 2013.
C) REPORTING ENTITY
The department is a government department of the State of South Australia, established pursuant to the Public Sector Act 2009. The
department is an administrative unit acting on behalf of the Crown.
The financial statements and accompanying notes reflect the use of assets, liabilities, revenues and expenses controlled or incurred by the
department in its own right. Transactions and balances relating to administered resources are not recognised as departmental income,
expense, assets and liabilities. As administered items are insignificant in relation to the department’s overall financial performance and
position, they are disclosed in summary in Note 38 Administered Items.
Except as otherwise disclosed, administered items are accounted for on the same basis and using the same accounting policies as for
departmental items.
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08 FINANCIAL STATEMENTS
NOTE 2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
D) TRANSFERRED FUNCTIONS
As published in the SA Government Gazette (dated 4.10.2012, p 4584) the TAFE SA Act 2012 (no 28 of 2012) came into operation on
1 November 2012.
As published in the SA Government Gazette (dated 4.10.2012 p 4586), the proclamation of TAFE SA resulted in the transfer of various assets,
rights and liabilities from the Minister for Employment, Higher Education and Skills to TAFE SA. Refer Note 33 Transferred Functions.
In June 2013, the Chief Executives of DFEEST and TAFE SA authorised the transfer of approximately 100 staff from DFEEST to TAFE SA
pursuant to Section 9 of the Public Sector Act 2009. These transfers were in accordance with a decision taken by the TAFE SA Board to
establish autonomous corporate services within TAFE SA. The financial effect of this machinery of government change has been reflected
in the financial statements as transferred functions effective from 1 July 2013.
E) COMPARATIVE INFORMATION
The presentation and classification of items in the financial statements are consistent with prior periods except where specific accounting
standards and/or Accounting Policy Statements has required a change. Where presentation or classification of items in the financial
statements has been amended, comparative amounts have been reclassified unless reclassification is impracticable.
The restated comparative amounts do not replace the original financial statements for the preceding period.
As detailed within Note 33, TAFE SA was proclaimed as a Statutory Authority from 1 November 2012 and all assets, liabilities and
employees relating to TAFE SA within DFEEST were transferred out to the new entity on that date. Consequently, DFEEST comparative
amounts include TAFE SA activities in 2012-13 relating to the period 1 July 2012 to 31 October 2012.
F) INCOME AND EXPENSES
Income and expenses have been classified according to their nature and have not been offset unless required or permitted by a specific
accounting standard, or where offsetting reflects the substance of the transaction or other event.
Income
Income is recognised to the extent that it is probable that the flow of economic benefits to the department will occur and can be reliably
measured.
The following are specific recognition criteria:
• Income from fees and charges is derived from the provision of goods and services to other SA government agencies and to other
clients and is recognised when invoices are raised.
• Income from disposal of non-current assets is recognised when control of the asset has passed to the buyer and determined by
comparing proceeds with carrying amount.
• Income from grants is recognised upon receipt of funding.
• Interest income is recognised as it accrues. Dividend income is recognised only when it is declared.
• C
ontribution income is recognised when control of the contribution or the right to receive the contribution and the income
recognition criteria are met.
• A
ppropriations for program funding are recognised as revenues when the department obtains control over the funding. Control over
appropriations is normally obtained upon their receipt.
Payments to the SA Government include the payment of surplus cash pursuant to the cash alignment policy. Revenues from SA
Government include the return of surplus cash pursuant to the cash alignment policy to DFEEST.
Expenses
Expenses are recognised to the extent that it is probable that the flow of economic benefits from the department will occur and can be
reliably measured.
The following are specific recognition criteria:
Employee benefits expense
Employee benefits expense includes all costs related to employment including wages and salaries, non-monetary benefits and leave
entitlements. These are recognised when incurred.
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NOTE 2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
In regards to superannuation expenses, the amount charged to the Statement of Comprehensive Income represents the contributions
made by the department to the superannuation plan in respect of current services of current departmental staff. The Department of
Treasury and Finance centrally recognises the superannuation liability in the whole of government financial statements.
Grant expenses
Grants are amounts provided by the department to entities for capital, specific or recurrent purposes and the name or category
reflects the use of the grant. The grants given are usually subject to terms and conditions set out in the contract, correspondence, or
by legislation. The grants are paid when the conditions set out in the contract or correspondence are met.
G) CURRENT AND NON-CURRENT CLASSIFICATION
Assets and liabilities are characterised as either current or non-current in nature. Assets and liabilities that are sold, consumed or realised
as part of the normal operating cycle even when they are not expected to be realised within twelve months after the reporting date have
been classified as current assets or current liabilities. All other assets and liabilities are classified as non-current.
Where asset and liability line items combine amounts expected to be realised within twelve months and more than twelve months, the
department has separately disclosed the amounts expected to be recovered or settled after more than twelve months.
H) EVENTS AFTER THE END OF THE REPORTING PERIOD
Adjustments are made to amounts recognised in the financial statements, where an event occurs after 30 June and before the date the
financial statements are authorised for issue, where those events provide information about conditions that existed at 30 June.
Note disclosure is made about events between 30 June and the date the financial statements are authorised for issue where the events
relate to a condition which arose after 30 June and which may have a material impact on the results of subsequent years (refer to Note 34).
I) CASH AND CASH EQUIVALENTS
Cash and cash equivalents in the Statement of Financial Position include cash at bank and on hand.
For the purposes of the Statement of Cash Flows, cash and cash equivalents includes cash at bank and cash on hand.
Cash is measured at nominal value.
J)RECEIVABLES
Receivables include amounts receivable from goods and services, GST input tax credits recoverable, prepayments and other accruals.
Receivables arise in the normal course of providing goods and services to other government agencies and to the public. Receivables
are generally receivable within 30 days after the issue of an invoice or the goods/services have been provided under a contractual
arrangement.
The recoverability of receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written off when identified.
An allowance for doubtful debts is raised when there is objective evidence that the department will not be able to collect the debt.
K) NON-CURRENT ASSETS HELD FOR SALE
Non-current assets are classified as held for sale and stated at the lower of their carrying amount and fair value less costs to sell if their
carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as
met only when the sale is highly probable and the asset’s sale is expected to be completed one year from the date of classification.
Non-current assets classified as held for sale are presented separately from the other assets in the Statement of Financial Position.
L) FINANCIAL ASSETS (INVESTMENTS)
In accordance with AASB 139 other financial assets are classified into the following specified categories: financial assets 'at fair value
through profit or loss', 'held-to-maturity' investments, 'available-for-sale' financial assets, and 'loans and receivables'. The classification
depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.
Available-for-sale financial assets
Certain shares held are classified as being available-for-sale and are stated at fair value less impairment. Gains and losses arising from
changes in fair value are recognised directly in the financial assets available-for-sale revaluation surplus, until the investment is disposed of
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08 FINANCIAL STATEMENTS
NOTE 2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
or is determined to be impaired, at which time the cumulative gain or loss previously recognised in the financial assets available-for-sale
revaluation surplus is included in profit or loss for the period. This category includes investments classified as ‘available-for-sale’ and any
investments that do not fit the definitions for inclusion in any of the categories contained in AASB 139.
M) PROPERTY, PLANT AND EQUIPMENT
Non-current assets are initially recorded at cost or at the value of any liabilities assumed, plus any incidental cost involved with the
acquisition. Non-current assets (excluding land) are subsequently measured at fair value less accumulated depreciation. Where assets are
acquired for no consideration, or minimal value, they are recorded at their fair value in the Statement of Financial Position. However, if the
assets are acquired at no or nominal value as part of a restructure of administrative arrangements then the assets are recognised at book
value, i.e. the amount recorded by the transferor public authority immediately prior to the restructure.
Componentisation of complex assets is only performed when the complex asset’s fair value at the time of acquisition is greater than
$1 million.
Revaluation of non-current assets
All non-current assets are valued at either market value or written down current cost (a proxy for fair value); and revaluation of non-current
assets or group of assets is only performed when its fair value at the time of acquisition is greater than $1 million and estimated useful life
is greater than three years.
Every three years, the department revalues its land, buildings, and improvements. However, if at any time management considers that the
carrying amount of an asset materially differs from its fair value, then the asset will be revalued regardless of when the last valuation took
place. Non-current assets that are acquired between revaluations are held at cost until the next valuation, where they are revalued to
fair value.
Any revaluation increment is credited to the revaluation surplus, except to the extent that it reverses a revaluation decrement of the same
asset class previously recognised as an expense, in which case the increase is recognised as income in the Statement of Comprehensive
Income.
Any revaluation decrement is recognised in the Statement of Comprehensive Income as an expense, except to the extent that it offsets
a previous revaluation increment for the same asset class, in which case the decrease is debited directly to the revaluation surplus to the
extent of the credit balance existing in the revaluation surplus for that asset class.
For buildings and improvements revaluations, any accumulated depreciation as at the revaluation date is eliminated against the gross
carrying amounts of the assets and the net amounts are restated to the revalued amounts of the asset.
The valuation methodology applied to specific classes of non-current assets under revaluations is as follows:
Land
Land is recorded on the basis of market value. Valuations for land were conducted as at 30 June 2012 by Liquid Pacific, independent
valuers, on the basis of market value. As at 30 June 2013 and 30 June 2014 properties classified as held for sale were valued in accordance
with the principles outlined in the note titled ‘Non-current assets held for sale’.
Buildings and Improvements
Buildings and improvements are valued at market value or written down current cost which is considered to be equivalent to fair value.
The building data provided in the statements relates specifically to buildings, paved areas, utility reticulation, fencing, sheds and other site
infrastructure assets. Valuations for building and infrastructure assets were conducted as at 30 June 2012 by Liquid Pacific, independent
valuers, on the basis of market value or written down current cost. As at 30 June 2013 and 30 June 2014, properties classified as held for
sale were valued in accordance with the principles outlined in the note titled ‘Non-current assets held for sale’.
Buildings under construction are recorded as work in progress and are valued at cost.
Plant and Equipment
Items of plant and equipment are recorded at cost less accumulated depreciation (deemed fair value).
All Plant and Equipment assets with a value of $10 000 or greater are capitalised.
Items under $10 000 are recorded in the Statement of Comprehensive Income as an expense in the accounting period in which
they are acquired.
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08 FINANCIAL STATEMENTS
NOTE 2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
Heritage Assets
Heritage assets are recorded at fair value (deemed) and recognised when valued at greater than $10 000.
Intangibles
An intangible asset is an identifiable non-monetary asset without physical substance. Intangible assets are measured at cost. Following
initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses.
The useful lives of intangible assets are assessed to be either finite or indefinite. The department only has intangible assets with finite lives.
The amortisation period for the intangible assets is reviewed on an annual basis.
The acquisition of or internal development of software is capitalised only when the expenditure meets the definition criteria (identifiability,
control and the existence of future economic benefits) and recognition criteria (probability of future economic benefits and cost can be
reliably measured) and when the amount of expenditure is greater than or equal to $10 000.
All research and development costs that do not meet the capitalisation criteria outlined in AASB 138 are expensed.
Fair Value measurement
AASB 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants, in the principal or most advantageous market, at the measurement date.
The department classifies fair value measurement using the following fair value hierarchy that reflects the significance of the inputs used
in making the measurements, based on the data and assumptions used in the most recent revaluation.
• L evel 1 – traded in active markets and is based on unadjusted quoted prices in active markets for identical assets or liabilities that the
entity can access at measurement date.
• L evel 2 – not traded in an active market and are derived from inputs (inputs other than quoted prices included within level 1) that are
observable for the asset, either directly or indirectly.
• Level 3 – not traded in an active market and are derived from unobservable inputs.
The valuation processes and fair value changes are reviewed by the Director, Finance and the Audit Risk and Management Committee at
each reporting date.
Non-financial assets
In determining fair value, the department has taken into account the characteristic of the asset (e.g. condition and location of the asset
and any restrictions on the sale or use of the asset); and the asset’s highest and best use (that is physically possible, legally permissible,
financially feasible).
The department’s current use is the highest and best use of the asset unless other factors suggest an alternative use is feasible. As the
department did not identify any factors to suggest an alternative use, fair value measurement was based on current use.
The carrying amount of non-financial assets with a ‘fair value’ at the time of acquisition that was less than $1 million or had an
estimated useful life that was less than three years’ are deemed to approximate fair value.
Refer to Note 21, 22, and 24 for disclosure regarding fair value measurement techniques and inputs used to develop fair value
measurements for non-financial assets.
N)IMPAIRMENT
All non-current assets are tested for indications of impairment at each reporting date. Where there is an indication of impairment, the
recoverable amount is estimated. An amount by which the asset’s carrying amount exceeds the recoverable amount is recorded as an
impairment loss.
For revalued assets an impairment loss is offset against the revaluation surplus.
O) DEPRECIATION AND AMORTISATION OF NON-CURRENT ASSETS
All non-current assets, having a limited useful life, are systematically depreciated/amortised over their useful lives in a manner that reflects
the consumption of their service potential. Amortisation is used in relation to intangible assets such as software, while depreciation is
applied to tangible assets such as property, plant and equipment.
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DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
NOTE 2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
Assets’ residual values, useful lives and amortisation methods are reviewed and adjusted if appropriate, on an annual basis.
Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are
accounted for prospectively by changing the time period or method, as appropriate, which is a change in accounting estimate.
Land and non-current assets held for sale are not depreciated. In addition, Heritage assets are not depreciated.
Depreciation/amortisation is calculated on a straight line basis over the estimated useful life of the following classes of assets as follows:
Class of asset
Useful life (years)
Buildings
15-80
Improvements
5-50
Paved areas
40-50
Computing and communication equipment
2-20
Other plant and equipment
1-45
Intangibles
10
P)PAYABLES
Payables include creditors, accrued expenses and employment on-costs and Paid Parental Leave Scheme Payable.
Creditors represent the amounts owing for goods and services received prior to the end of the reporting period that are unpaid at the end
of the reporting period. Creditors include all unpaid invoices received relating to the normal operations of the department.
Accrued expenses represent goods and services provided by other parties during the period that are unpaid at the end of the reporting
period and where an invoice has not been received.
The Paid Parental Leave Scheme Payable represents amounts which the department has received from the Commonwealth Government
to forward onto eligible employees via the department’s standard payroll processes. That is, the department is acting as a conduit through
which the payment to eligible employees is made on behalf of the Family Assistance Office.
All payables are measured at their nominal amount, are unsecured and are normally settled within 30 days from the date of the invoice or
date the invoice is first received.
Employee benefits on-costs include superannuation contributions, workers' compensation and payroll tax with respect to outstanding
liabilities for salaries and wages, long service leave, annual leave and skills and experience retention leave.
The department makes contributions to several State Government and externally managed superannuation schemes. These contributions
are treated as an expense when they occur. There is no liability for payments to beneficiaries as they have been assumed by the respective
superannuation schemes. The only liability outstanding at balance date relates to any contributions due but not yet paid to the South
Australian Superannuation Board and externally managed schemes.
Q) EMPLOYEE BENEFITS AND EMPLOYMENT RELATED LIABILITIES
Liabilities have been established for various employee benefits arising from services rendered by employees to balance date. Employee
benefits include entitlements to wages and salaries, long service leave and annual leave. Long-term benefits are measured at present
value and short-term employee benefits are measured at nominal amounts.
Employment related expenses include on-costs such as employer superannuation and payroll tax on employee entitlements together
with the workers’ compensation insurance premium. These are reported under Payables as on-costs on employee benefits (refer Note 25).
Salaries, wages, annual leave, skills and experience retention leave, non-attendance days and sick leave
Liabilities for salaries and wages are measured as the amount unpaid at the reporting date at remuneration rates current at reporting date.
The annual leave liability and the skills and experience retention leave liability is expected to be payable within twelve months and is
measured at the undiscounted amount expected to be paid. In the unusual event where salary and wages, annual leave and skills and
experience retention leave liability are payable later than 12 months, the liability will be measured at present value.
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08 FINANCIAL STATEMENTS
NOTE 2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees is
estimated to be less than the annual entitlement for sick leave.
Long service leave
The liability for long service leave is measured as the present value of expected future payments to be made in respect of services
provided by employees up to the end of the reporting period using the projected unit credit method.
The estimated liability for long service leave is based on actuarial assumptions over expected future salary and wage levels, experience of
employee departures and periods of service. These assumptions are based on employee data across SA government entities. Expected
future payments are discounted using market yields at the end of the reporting period on government bonds with durations that match,
as closely as possible, the estimated future cash outflows.
R)PROVISIONS
A liability has been reported to reflect unsettled workers' compensation claims. The workers' compensation provision is based on an
actuarial assessment performed by the Public Sector Workforce Relations Division of the Department of the Premier and Cabinet. The
provision is for the estimated cost of ongoing payments to employees as required under current legislation.
Provisions are recognised when the department has a present obligation as a result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of
the obligation.
When the department expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset but
only when the reimbursement is virtually certain. The expense relating to any provision is presented in the Statement of Comprehensive
Income net of any reimbursement.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation
at the Statement of Financial Position date. If the effect of the time value of money is material, provisions are discounted for the time value
of money and the risks specific to the liability.
S)LEASES
The department has entered into a number of operating lease agreements, as lessee, for buildings and other facilities where the lessors
effectively retain all risks and benefits incidental to ownership of the items held under the operating leases.
Operating lease payments are recognised as an expense in the Statement of Comprehensive Income on a straight-line basis over the lease
term. The straight-line basis is representative of the pattern of benefits derived from the leased assets.
Details of commitments of current non-cancellable operating leases are disclosed at Note 31.
T) ACCOUNTING FOR TAXATION
The department is not subject to income tax. The department is liable for payroll tax, fringe benefits tax, goods and services tax (GST),
emergency services levy and local government rate equivalents.
Income, expenses and assets are recognised net of the amount of GST except:
• w
hen the GST incurred on a purchase of goods or services is not recoverable from the ATO, in which case the GST is recognised as part
of the cost of acquisition of the asset or as part of the expense item applicable, and
• receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the Statement of
Financial Position.
Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows arising from investing and
financing activities, which is recoverable from, or payable to, the ATO is classified as part of operating cash flows.
Unrecognised Contractual Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to the
ATO. If GST is not payable to, or recoverable from the ATO, the commitments and contingencies are disclosed on a gross basis.
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DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
NOTE 2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
U) FINANCIAL GUARANTEES
At the time a financial guarantee contract is issued, it is recognised as a liability initially measured at fair value. If there is a material
increase in the likelihood that the guarantee may have to be exercised, the financial guarantee is measured at the higher of the amount
determined in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognised less
cumulative amortisation, where appropriate.
In the determination of fair value, consideration is given to the following factors:
• the overall capital management / prudential supervision framework in operation
• the protection provided by the state government by way of funding should the probability of default increase
• the probability of default by the guaranteed party, and
• the likely loss to the department in the event of default.
The department has reviewed its financial guarantees and determined that there is no material liability to be recognised for financial
guarantee contracts as at 30 June 2014 (there was no material liability recognised for financial guarantee contracts in 2013).
Whilst no liability has been recognised for financial guarantee contracts, further note disclosures relating to financial guarantees are
contained at Note 32 Contingent Assets and Liabilities.
V) UNRECOGNISED CONTRACTUAL COMMITMENTS AND CONTINGENT ASSETS AND LIABILITIES
Commitments include those operating, capital and outsourcing commitments arising from contractual or statutory sources and are
disclosed at their nominal value.
Contingent assets and contingent liabilities are not recognised in the Statement of Financial Position, but are disclosed by way of a note
and, if quantifiable, are measured at nominal value.
W)ROUNDING
All amounts in the financial statements and accompanying notes have been rounded to the nearest thousand dollars ($’000).
NOTE 3
CHANGES IN ACCOUNTING POLICIES
The department did not voluntarily change any of its accounting policies during 2013-14.
In accordance with the new AASB 13 Fair Value Measurement, which became effective for the first time in 2013-14, the department has:
• r eviewed its fair value valuation techniques (primarily independent valuation appraisal) for non-financial assets to ensure they are
consistent with the standard. Previously, the department used the cost approach or the market approach to determine fair value. The
department will continue to measure its non-financial assets using either the cost or market approach. The application of AASB 13 has
not had a material impact on the fair value measurements, and
• included additional disclosures where required to assist users in assessing the valuation techniques and inputs used to ascertain fair
value measurements used for asset and liability measurements.
Fair value hierarchy and other information are provided in Notes 21, 22 and 24.
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective, have not been
adopted by the department for the period ending 30 June 2014. The department has assessed the impact of the new and amended
standards and interpretations and considers there will be no impact on the accounting policies or the financial statements of the department.
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08 FINANCIAL STATEMENTS
NOTE 4
ACTIVITIES AND SUB-ACTIVITIES
Activities - Employment and Skills Formation
Description/Objective: To strengthen the economic prosperity and social well-being of South Australians through strategic employment,
skills formation and workforce development.
Sub-activities - Vocational Education and Training
Coordinate high quality VET through TAFE SA and other registered training organisations through:
• t he investment of public funds to support individuals and employers to develop workforce skills, including through apprenticeships
and traineeships
• supporting post-secondary training and education to meet industry requirements, and
• providing state and national policy advice.
Sub-activities - Learning, Workforce Participation and Workforce Development
Address the state’s economic development, productivity and social inclusion objectives by:
• providing opportunities for people to participate in employment, training, skills development and ACE
• meeting the current and future labour and skill needs of industry, and
• providing state and national policy advice.
Sub-activities – Quality Assurance and Regulatory Services
Administer the state’s further education and training system through:
• quality assurance of Skills for All training providers and other training organisations in accordance with contract standards
• quality oversight of the state vocational education system through the Training and Skills Commission
• regulating and administering the apprenticeship and traineeship system, and
• providing state and national policy advice.
Sub-activities - International and Higher Education
Support South Australian higher education institutions, both local and international, in sustaining the state’s reputation for quality
teaching and learning for both domestic and international students.
Provide high level strategic policy advice to the Minister on higher education policy and planning.
Activities - Science, Technology and Information Economy
Description/Objective: Provide the Government with a strategic and coordinated focus in science, technology and information economy
policy development and program delivery, supporting better linkages between research institutions and industry, to support state
productivity.
Sub-activities - Science and Innovation
Provide high level strategic advice to the Minister on maximising economic, environmental and social benefits from the state’s
scientific and research performance and investments by:
• identifying strategic priorities for state government investment in science and research
• raising awareness and understanding of the benefits of science and innovation amongst government, business and the community
• facilitating coordinated and strategic bids for Commonwealth government grants, and
• f acilitating the coordination of education and research activity with end-user (industry) requirements to maximise the benefits for
South Australia.
Sub-activities - Information Economy
Provide high level strategic policy advice to the Minister and Government on the information economy and the information and
communications technology sector with particular regards to its uptake and effective use to maximise economic benefits across the
state through:
• d
eveloping strategy and facilitating programs and projects for promoting the information economy and supporting the
deployment, availability and effective use of broadband across the state
P 89
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
NOTE 4
ACTIVITIES AND SUB-ACTIVITIES CONTINUED
• supporting strategic investments projects that deliver on the information economy objectives, and
• implementing initiatives that support digital literacy across the community.
Sub-activities – Bioscience Industry Development
Develop the bioscience industry by providing assistance in business development, finance, infrastructure and marketing.
NOTE 5
EMPLOYEE BENEFITS
2014
$’000
2013
$’000
40 797
4 525
2 844
1 013
99
25
4 026
361
109 134
11 414
6 268
4 014
948
1 602
4 717
541
53 690
138 638
2014
$’000
2013
$’000
4 026
1 154
4 717
1 238
5 180
5 955
Funding from the Department of Treasury and Finance (refer note 18)
3 898
4 866
Net cost to the department
1 282
1 089
2014
Number
2013
Number
32
39
Salaries and wages (including annual leave)
Superannuation
Payroll tax
Long service leave
Skills and experience retention leave
Workers compensation
TVSP
Other employee related costs
TVSP
Amount paid to these employees:
TVSPs
Leave paid to those employees
The number of employees who were paid TVSPs during the reporting period
P 90
08 FINANCIAL STATEMENTS
NOTE 5
EMPLOYEE BENEFITS CONTINUED
REMUNERATION OF EMPLOYEES
The number of employees whose remuneration received or receivable falls within the following bands:
2014
Number of employees
(including TVSP)
2013
Number of employees
(including TVSP)
n/a
1
3
2
2
2
1
1
1
1
1
1
1
1
4
1
2
4
2
1
3
3
1
1
1
-
18
23
$138 000 to $141 499 *
$141 500 to $151 499
$151 500 to $161 499
$161 500 to $171 499
$171 500 to $181 499
$181 500 to $191 499
$191 500 to $201 499
$201 500 to $211 499
$221 500 to $231 499 Ο
$231 500 to $241 499
$261 500 to $271 499
$271 500 to $281 499
$281 500 to $291 499
$301 500 to $311 499
$311 500 to $321 499 Δ
$341 500 to $351 499
$361 500 to $371 499
$371 500 to $381 499 Δ
$381 500 to $391 499 Δ
Total number of employees
* This band has been included for the purposes of reporting comparative figures based on the executive base level remuneration rate
for 2012-13.
Δ
This bandwidth includes employees that have received TVSP's during 2013-14.
Ο
This bandwidth includes employees that have received TVSP's during 2012-13.
The table includes all employees who received remuneration equal to or greater than the base executive remuneration level during the
year. Remuneration of employees reflects all costs of employment including salaries and wages, superannuation contributions, separation
packages, fringe benefits tax and any other salary sacrifice benefits. The total remuneration received by these employees for the year was
$4.2 million ($4.4 million).
For 2013-14, the above figures included three non-executive employees (0 in 2012-13) who took a TVSP during the year. The total
remuneration received by non-executive employees in 2013-14 was $1.2 million. P 91
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
NOTE 6
VET FUNDING
2014
$’000
2013
$’000
Funding to TAFE SA for VET
Funding to other providers for VET
192 545
116 515
165 832
105 104
Total VET Funding
309 060
270 936
Funding to TAFE SA for VET
Funding to other providers for VET
192 545
1 406
165 832
3 640
Total VET funding to SA Government entities
193 951
169 472
2014
$’000
2013
$’000
Printing and consumables
Minor works, maintenance and equipment
Information technology infrastructure and communication
Fees - contracted services (including consultants)
Trainee and apprenticeship reimbursements
Utilities
Cleaning
Vehicle and travelling expenses
Rentals and leases
Books, materials and copyright
Satac and student support
Other
318
1 929
13 012
6 846
4 256
315
601
880
5 030
4
146
1 566
3 891
5 056
11 895
12 727
2 680
2 809
2 615
3 084
5 384
950
1 053
5 182
Total supplies and services
34 903
57 326
1 542
1 481
1 637
216
560
571
4 858
269
4 435
1 922
4 574
696
2 253
1 376
4 537
582
11 134
20 375
VET funding paid/payable to entities within the SA Government
NOTE 7
SUPPLIES AND SERVICES
Supplies and services provided by entities within the SA Government
Minor works, maintenance and equipment
Information technology infrastructure and communication
Fees - contracted services (including consultants)
Utilities
Cleaning
Vehicle and travelling expenses
Rentals and leases
Other
Total supplies and services by SA Government entities
The total supplies and services amount disclosed includes GST amounts not-recoverable from the ATO due to the department not holding
a valid tax invoice or payments relating to third party arrangements.
P 92
08 FINANCIAL STATEMENTS
NOTE 7
SUPPLIES AND SERVICES CONTINUED
CONSULTANCY
The number and dollar amount of consultancies paid/payable (included in supplies and services) that fell within the following bands:
No.
2014
$’000
No.
2013
$’000
Below $10 000
Between $10 000 and $50 000
Above $50 000
1
3
2
5
75
119
1
2
4
5
45
264
Total paid/payable to the consultants engaged (GST exclusive)
6
199
7
314
NOTE 8
GRANTS AND SUBSIDIES
2014
$’000
2013
$’000
73 580
19 629
7 542
15 292
10 996
660
2 848
41 237
20 542
6 507
14 093
10 602
1 510
2 600
130 547
97 091
Grants provided to TAFE SA
Employment programs
VET programs
Science and information economy programs
Tertiary student transport concessions
Other specific grants
73 580
176
6 964
10 996
1 780
41 237
435
281
7 440
10 602
1 796
Total grants and subsidies to SA Government entities
93 496
61 791
2014
$’000
2013
$’000
Buildings and improvements
Plant and equipment
Library
Intangibles
19 630
870
1 405
19 604
1 409
673
756
Total depreciation and amortisation
21 905
22 442
Grants provided to TAFE SA
Employment programs
VET programs
Science and information economy programs
Tertiary student transport concessions
National training infrastructure program
Other specific grants
Total grants and subsidies
Grants and subsidies paid/payable to entities within the SA Government
NOTE 9
DEPRECIATION AND AMORTISATION
All library assets transferred to TAFE SA as at 1 November 2012.
P 93
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
NOTE 10
OTHER EXPENSES
2014
$’000
2013
$’000
TVSP reimbursement to TAFE SA
Audit fees (refer note 11)
Allowance for doubtful debts and debt write-offs
Other
29 712
216
116
-
7 490
207
86
6
Total other expenses
30 044
7 789
2014
$’000
2013
$’000
213
180
3
27
216
207
2014
$’000
2013
$’000
Productivity Places Program
Foundation Skills Workforce Development Project
Language Literacy & Numeracy Delivery Statewide
Industry and Indigenous Skills Centre Program
Australian Flexible Learning Framework
Joint Group Training Program
Aged Care Workforce
Remote Indigenous Public Internet Access
Community Development Employment Projects program
TAFE Fee Waivers for Childcare Qualifications
Training Places for Single and Teen Parents
Skills Reform
Other Specific Commonwealth Revenue
13 140
690
90
106
1 148
152
1 226
2 227
12 696
-
15 158
1 499
2 126
844
1 097
197
425
418
861
3 898
17 314
385
Total Commonwealth grants
31 475
44 222
NOTE 11
AUDITOR’S REMUNERATION
Audit fees paid/payable to the Auditor-General's Department relating to the audit of
financial statements
Other audit fees
Total auditor's remuneration paid/payable
No other services were provided by the Auditor-General’s Department.
NOTE 12
COMMONWEALTH GRANTS
2013-14 COMMITMENTS
$13.1 million in Commonwealth revenue was received for the National Partnership Agreement on the Productivity Places Program in
2013-14. All revenue was fully spent in 2013-14.
The 2013-14 expenditure associated with the Foundation Skills Workforce Development National Partnership was funded from a 2012-13
carryover. Similarly, $0.7 million was received late in the financial year which is unspent and will be carried over to fund 2014-15 commitments.
P 94
08 FINANCIAL STATEMENTS
NOTE 12
COMMONWEALTH GRANTS CONTINUED
$0.1 million in Commonwealth revenue was received for the Industry & Indigenous Skills Program. The program has completed and no
2014-15 commitments exist.
$1.1 million in Commonwealth revenue was received for the Joint Group Training Program in 2013-14. All revenue other than $55 636 was
fully spent. The remainder is committed to be spent in 2014-15.
Revenue received associated with the Remote Indigenous Public Internet Access program in 2013-14 totalled $0.2 million and was spent
in full. $1.2 million in Commonwealth revenue was received for the National Partnership Agreement on Child Care Fee Waiver Qualifications in
2013-14. All revenue was fully spent in 2013-14 as part of the Skills for All training initiative.
$2.2 million in Commonwealth revenue was received for the National Partnership Agreement on Training Places for Single and Teen
Parents in 2013-14. All revenue was fully spent in 2013-14 as part of the Skills for All training initiative.
$12.67 million in Commonwealth revenue was received for the National Partnership Agreement on Skills Reform in 2013-14. All revenue
was fully spent in 2013-14 as part of the Skills for All training initiative.
2012-13 COMMITMENTS
$15.2 million in Commonwealth revenue was received and fully spent for the National Partnership Agreement on the Productivity
Places Program.
$1.5 million was received in 2012-13 relating to the Foundation Skills Workforce Development National Partnership Agreement. A minor
amount was spent in 2012-13 while the remainder funded the 2013-14 program commitments via a year end carryover.
$0.8 million was received for the Industry & Indigenous Skills Centre Program in 2012-13. A carryover was submitted at year end to support
2013-14 program commitments.
$0.4 million in Commonwealth revenue was received in 2012-13 for the Remote Indigenous Internet Access program. Of this amount
$0.2 million was not spent and carried over to fund 2013-14 commitments. Commonwealth National Partnership revenue received in 2012-13 for the Training Places for Single & Teen Parents, TAFE Fee Waivers for
Childcare Qualifications and VET Skills Reform programs was spent in full as part of the Skills for All training initiative.
NOTE 13
FEES AND CHARGES
2014
$’000
2013
$’000
Corporate services recharges to TAFE SA
Infrastructure recharges to TAFE SA
Sales/fee for service revenue
Student enrolment fees and charges
Other user fees and charges
13 188
23 023
5 407
2 712
19 945
12 100
20 806
10 937
1 053
Total fees and charges received/receivable
44 330
64 841
Corporate services recharges to TAFE SA
Infrastructure recharges to TAFE SA
Sales/fee for service revenue
Student enrolment fees and charges
Other user fees and charges
13 188
23 023
5 407
1 963
19 945
12 100
5 285
334
114
Total fees and charges from SA Government entities
43 581
37 778
Fees and charges received/receivable from entities within the SA Government
P 95
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
NOTE 14
OTHER GRANTS AND CONTRIBUTIONS
2014
$’000
2013
$’000
Grants and subsidies revenue
Miscellaneous contributions
Donations
Grants from entities within the SA Government
500
76
2 055
1 114
130
42
4 734
Total other grants and contributions
2 631
6 020
2014
$’000
2013
$’000
Dividends
Interest from entities external to the SA Government
425
-
533
1
Total investment income
425
534
2014
$’000
2013
$’000
1 420
(1 397)
-
23
-
(179)
(12)
(179)
(12)
1 420
(1 576)
(12)
(156)
(12)
NOTE 15
NOTE 16
INVESTMENT INCOME
NET LOSS FROM THE DISPOSAL OF NON-CURRENT ASSETS
Land and buildings
Proceeds from disposals
Less: net book value of assets disposed
Plant and equipment
Proceeds from disposals
Less: net book value of assets disposed
Total assets
Total proceeds from disposal
Less: net book value of assets disposed
Total net loss from the disposal of non-current assets
P 96
08 FINANCIAL STATEMENTS
NOTE 17
OTHER INCOME
2014
$’000
2013
$’000
Recoup of salaries
Sundry income
351
3 664
666
1 120
Total other income
4 015
1 786
2014
$’000
2013
$’000
471 298
34 921
415 290
18 849
506 219
434 139
(1 411)
(8 247)
(1 411)
(8 247)
504 808
425 892
2014
$’000
2013
$’000
Special deposit account with the Department of Treasury and Finance
Cash on hand
41 557
3
62 709
3
Total cash and cash equivalents
41 560
62 712
NOTE 18
REVENUES FROM/PAYMENTS TO SA GOVERNMENT
Revenues from SA Government
Appropriations from consolidated account pursuant to the Appropriation Act
Appropriation transfers from contingency1
Payments to SA Government
Payments to consolidated account for sale of property
Total revenues from/payments to SA Government
1
Includes an amount of $3.9 million ($4.9 million) for funding of TVSP payments. Refer to note 5.
NOTE 19
CASH AND CASH EQUIVALENTS
DEPOSITS WITH THE TREASURER
Comprises funds held in the Accrual Appropriation Excess Funds Account. The balances of these funds are not available for general use
(i.e. funds can only be used in accordance with the Treasurer's/Under Treasurer's approval).
INTEREST RATE RISK
Cash on hand is non-interest bearing. Deposits with the Treasurer earn interest at a floating interest rate, based on daily bank deposit rates.
The carrying amount of cash and cash equivalents represents fair value.
CORRECTION OF ERROR
The comparatives have been adjusted for a $0.135 million understatement for deposits relating to pre 1 November 2012 that were
previously recorded as TAFE SA.
P 97
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
NOTE 20
RECEIVABLES
2014
$’000
2013
$’000
Fees and charges receivable
Less: allowance for doubtful debts
Prepayments
GST recoverable from ATO
Other receivables
15 432
(103)
895
1 926
9
7 837
(9)
613
1 569
14
Total current receivables
18 159
10 024
Workers' compensation receivable
41
50
Total non-current receivables
41
50
18 200
10 074
Receivables
13 378
7 173
Total receivables from SA Government entities
13 378
7 173
Current
Non-current
Total receivables
Receivables from SA Government entities
CORRECTION OF ERROR
The comparatives have been adjusted for a $0.282 million understatement for receivables transferred between DFEEST and TAFE SA.
MOVEMENT IN THE ALLOWANCE FOR DOUBTFUL DEBTS
The allowance for doubtful debts (allowance for impairment loss) is recognised when there is objective evidence (i.e. calculated on past
experience and current and expected changes in client credit rating) that a receivable is impaired.
An allowance for impairment loss has been recognised in 'other expenses' in the Statement of Comprehensive Income for specific debtors
and debtors assessed on a collective basis for which such evidence exists.
2014
$’000
2013
$’000
9
2 786
Decrease in the allowance
Amounts written off
Increase(decrease) in allowance recognised in profit or loss
(26)
120
(1 102)
(1 675)
-
Carrying amount at the end of the period
103
9
Carrying amount at the beginning of the period
INTEREST RATE RISK
Receivables are raised for all goods and services provided for which payment has not been received. Receivables are normally settled
within 30 days. Trade receivables and accrued revenues are non-interest bearing.
Other than as recognised in the allowance for doubtful debts, it is not anticipated that counterparties will fail to discharge their obligations.
The carrying amount of receivables approximates net fair value due to being receivable on demand. There is no concentration of credit risk.
a. Maturity analysis of receivables
- Please refer to table 37.3 in Note 37.
b. Categorisation of financial instruments and risk exposure information
- Please refer to note 37.
P 98
08 FINANCIAL STATEMENTS
NOTE 21
NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE
2014
$’000
2013
$’000
Land at fair value
Buildings and improvements at fair value
30 459
10 631
6 719
2 851
Total non-current assets classified as held for sale
41 090
9 570
VALUATION OF ASSETS HELD FOR SALE
As at 30 June 2013 and 30 June 2014, properties classified as held for sale were valued by Valcorp Australia Pty Ltd in accordance with the
principles outlined in the note 2(k).
NOTE 22
PROPERTY, PLANT AND EQUIPMENT
2014
$’000
2013
$’000
125 404
670 409
(34 746)
13 449
154 530
574 873
(19 106)
89 956
774 516
800 253
7 752
(4 300)
10 847
(6 991)
3 452
3 856
49
-
49
-
Total property, plant and equipment
817 063
830 206
Total accumulated depreciation at the end of the period
(39 046)
(26 097)
Total property, plant and equipment
778 017
804 109
Land and buildings
Land at fair value
Buildings and improvements at fair value
Accumulated depreciation
Construction work in progress
Plant and equipment
Plant and equipment at cost (deemed fair value)
Accumulated depreciation
Heritage assets
Heritage assets at fair value
VALUATION OF PROPERTY
The valuation of land and buildings was performed by Martin Burns independent valuer from Liquid Pacific as at 30 June 2012. The valuer
arrived at fair value on the basis of market values or at written down current cost which is considered to be equivalent to fair value.
PLANT AND EQUIPMENT
All items of plant and equipment had a fair value at the time of acquisition that was less than $1 million, or had an estimated useful life
that was less than three years, and have not been revalued in accordance with APFIII. The carrying value of these items are deemed
to approximate fair value. These assets are classified in Level 3 as there has been no subsequent adjustment to their value, except for
management assumptions about the asset's condition and remaining useful life.
P 99
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
NOTE 22
PROPERTY, PLANT AND EQUIPMENT CONTINUED
HERITAGE ASSETS
The valuation of heritage assets was performed in 2008 by Bonhams and Bruce, approved valuers of the Auctioneers & Valuers Association
of Australia. The assets are held at fair value based on the book value recorded by the transferor agency immediately prior to the transfer.
IMPAIRMENT
There were no indications of impairment of property, plant and equipment assets at 30 June 2014.
NOTE 23
INTANGIBLES
2014
$’000
2013
$’000
Computer software
Accumulated amortisation
Intangible work in progress
13 692
(2 121)
887
7 680
(716)
4 215
Total intangibles
12 458
11 179
The department has no contractual commitments for the acquisition of intangibles assets.
IMPAIRMENT
There were no indications of impairment on intangible assets at 30 June 2014.
P 100
P 101
RECONCILATIONS
1 July 2012
carrying
amount
$’000
161 600
586 484
16 632
11 786
5 386
781 888
Land at fair value
Buildings and improvements
Plant & equipment
Construction work in progress
Libraries at valuation
Sub total
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
79 378
400
78 852
126
Additions
$’000
804 109
Sub total
2013
53 805
154 530
555 767
3 856
89 956
-
645
53 111
49
Additions
$’000
Land at fair value
Buildings and improvements
Plant & equipment
Construction work in progress
Heritage assets at valuation
2014
1 July 2013
carrying
amount
$’000
(13)
(13)
-
Disposals
$’000
(1 005)
(694)
(132)
(179)
-
Disposals
$’000
(9 294)
(351)
(8 943)
-
Net revaluation
increment/
(decrement)
$’000
(26 302)
(4 222)
(22 080)
-
Net revaluation
increment/
(decrement)
$’000
(9 571)
(6 719)
(2 852)
-
Transfer to
assets held
for sale
$’000
(32 090)
(24 210)
(7 880)
-
Transfer to
assets held
for sale
$’000
0
682
(682)
-
Other
movements
$’000
0
129 618
(129 618)
-
Other
movements
$’000
(16 593)
(11 754)
(4 839)
Transfer
due to
restructure
$’000
-
-
Transfer
due to
restructure
$’000
Reconciliations of the carrying amount of each class of non-current assets at the beginning and end of the current financial year are set out below:
NOTE 22A
(21 686)
(19 604)
(1 409)
(673)
Depreciation
$’000
(20 500)
(19 630)
(870)
-
Depreciation
$’000
804 109
154 530
555 767
3 856
89 956
-
30 June 2013
carrying
amount
$’000
778 017
125 404
635 663
3 452
13 449
49
30 June 2014
carrying
amount
$’000
08 FINANCIAL STATEMENTS
ANNUAL REPORT 2013-14
18 635
Total
5 137
5 137
Additions
$’000
1 July 2012
carrying
amount
$’000
13 761
4 874
2 926
2 926
Additions
$’000
11 179
Intangibles
Intangibles work in progress
2013
Total
6 964
4 215
1 July 2013
carrying
amount
$’000
RECONCILATIONS
Intangibles
Intangibles work in progress
2014
NOTE 23A
-
-
Disposals
$’000
(242)
(242)
Disposals
$’000
-
-
Net revaluation
increment/
(decrement)
$’000
-
-
Net revaluation
increment/
(decrement)
$’000
-
-
Transfer to
assets held
for sale
$’000
-
-
Transfer to
assets held
for sale
$’000
0
5 192
(5 192)
Other
movements
$’000
0
6 012
(6 012)
Other
movements
$’000
(11 837)
(756)
(756)
-
Amortisation
$’000
Transfer
due to
restructure
$’000
(11 233)
(604)
(1 405)
(1 405)
-
Amortisation
$’000
-
-
Transfer
due to
restructure
$’000
11 179
6 964
4 215
30 June 2013
carrying
amount
$’000
12 458
11 571
887
30 June 2014
carrying
amount
$’000
08 FINANCIAL STATEMENTS
P 102
08 FINANCIAL STATEMENTS
NOTE 24
FAIR VALUE MEASUREMENT
FAIR VALUE HIERARCHY
The fair value of non-financial assets must be estimated for recognition and measurement or for disclosure purposes. The department
categorises non-financial assets measured at fair value into hierarchy based on the level of inputs use in measurement.
Fair value measurements recognised in the Statement of Financial Position are categorised into the following levels at 30 June 2014.
The department had no valuations categorised into level 1.
2014
$’000
Level 2
$’000
Level 3
$’000
125 404
635 663
3 452
49
125 404
-
635 663
3 452
49
764 568
125 404
639 164
30 459
10 631
30 459
10 631
-
41 090
41 090
-
805 658
166 494
639 164
Recurring fair value measurements
Land (note 22)
Buildings & improvements (note 22)
Plant & equipment (note 22)
Heritage assets (note 22)
Total recurring fair value measurements
Non-recurring fair value measurements
Land held for sale (note 21)
Buildings & improvements held for sale (note 21)
Total non-recurring fair value measurements
Total
Comparative information for non-financial assets has not been provided as permitted by the transitional provisions of the new standard.
There were no transfers of assets between level 1 and 2 fair value hierarchy levels in 2014. The department's policy is to recognise transfers
into and out of fair value hierarchy levels as at the end of the reporting period.
VALUATION TECHNIQUES AND INPUTS
Valuation techniques used to derive level 2 and 3 fair values are at note 21 and 22. There were no changes in valuation techniques during
2014. The following table is a reconciliation of fair value measurements using significant unobservable inputs (level 3).
QUANTITATIVE INFORMATION ABOUT FAIR VALUE MEASUREMENT USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Description
Valuation technique
Unobservable inputs
Buildings
Depreciated replacement cost
Plant & equipment
Heritage
Depreciated cost
Deemed fair value
Cost per unit area
Effective life (years)
Effective life (years)
N/a
P 103
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
Range
$85-$5 600
40-80
1-45
n/a
08 FINANCIAL STATEMENTS
NOTE 24
FAIR VALUE MEASUREMENT CONTINUED
RECONCILIATION OF FAIR VALUE MEASUREMENTS - LEVEL 3
Buildings
$’000
Plant &
equipment
$’000
Heritage
$’000
555 767
3 856
-
(7 880)
(132)
129 618
645
(179)
-
49
-
677 373
4 322
49
(19 630)
(870)
-
(19 630)
(870)
-
(22 080)
-
-
Subtotal
(22 080)
-
-
Closing balance at 30 June 2014
635 663
3 452
49
(19 530)
(678)
Opening balance at 1 July 2013
Acquisitions
Donated assets
Transfer out of level 3
Disposals
Transfers between asset classes
Subtotal
Gains/(losses) for the period recognised in net result: #
Depreciation
Subtotal
Gains/(losses) for the period recognised in other
comprehensive income:
Revaluation increment/(decrement)
#
T he gains/(losses) in operating result include changes in unrealised gains/
(losses) for assets still held at the end of the reporting period. The amounts
of these changes included in the various line items are as follows:
Depreciation
NOTE 25
PAYABLES
2014
$’000
2013
$’000
Creditors
Accrued expenses
Employment on-costs
Paid Parental Leave Scheme
Other
24 581
24 520
1 036
4
14
61 084
35 501
1 193
(12)
22
Total current payables
50 155
97 788
Employment on-costs
896
527
Total non-current payables
896
527
51 051
98 315
Current
Non-current
Total payables
P 104
08 FINANCIAL STATEMENTS
NOTE 25
PAYABLES CONTINUED
2014
$’000
2013
$’000
Creditors
Accrued expenses
Employment on-costs
13 647
15 388
1 879
54 814
28 615
1 643
Total payables to SA Government entities
30 914
85 072
Payables to SA Government entities
CORRECTION OF ERROR
The comparatives have been adjusted for a $0.206 million understatement for payables between DFEEST and TAFE SA.
As a result of an actuarial assessment performed by the Department of Treasury and Finance, the percentage of the proportion of long
service leave taken has increased from the 2013 rate of 26 per cent to 40 per cent. This also incorporates a change in accounting estimate,
whereby the department has adopted the percentage for other government departments (40 per cent), rather than the educational
percentage (64 per cent). The average factor for the calculation of employer superannuation cost on-cost has increased from the 2013 rate
of 10.2 per cent to 10.3 per cent. These rates are used in the employment oncost calculation. The net financial effect of the changes in the
current financial year is an increase in the employment on-cost of $0.16 million.
INTEREST RATE AND CREDIT RISK
Creditors are raised for all amounts billed but unpaid and accruals are raised where goods and services are received but an invoice has not
yet been received. Sundry creditors are normally settled within 30 days. Employment on-costs are settled when the respective employee
benefit that they relate to is discharged. All payables are non-interest bearing. The carrying amount of payables represents fair value due
to the amounts being payable on demand.
a. Maturity analysis of payables
- Please refer to table 37.3 in Note 37.
b. Categorisation of financial instruments and risk exposure information
- Please refer to Note 37.
NOTE 26
EMPLOYEE BENEFITS
2014
$’000
2013
$’000
Annual leave
Long service leave
Skills and experience retention leave
Accrued salaries and wages
3 245
929
201
1 094
4 018
1 610
293
1 101
Total current employee benefits
5 469
7 022
Long service leave
9 651
12 919
Total non-current employee benefits
9 651
12 919
15 120
19 941
Current
Non-current
Total employee benefits
P 105
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
NOTE 26
EMPLOYEE BENEFITS CONTINUED
AASB 119 contains the calculation methodology for long service leave liability. The actuarial assessment performed by the Department of
Treasury and Finance has provided a set level of liability for the measurement of long service leave. AASB 119 requires the use of the yield on long term Commonwealth Government bonds as the discount rate in the measurement of the
long service leave liability. The yield on long term Commonwealth Government bonds has decreased from 2013 (3.50 per cent) to 2014
(3.25 per cent).
This decrease in the bond yield, which is used to discount future long service leave cash flows, results in an increase in the reported long
service leave liability. The net financial effect of the changes in the current financial year is an increase in the long service leave liability of
$0.247 million (however the long service liability has decreased overall due to transfer of staff to TAFE SA, and the number of TVSPs taken
during 2013-14). The impact on future periods is impracticable to estimate as the long service leave liability is calculated using a number of
assumptions – a key assumption is the long-term discount rate.
The actuarial assessment performed by the Department of Treasury and Finance left the salary inflation rate at 4 per cent. As a result, there
is no net financial effect resulting from changes in the salary inflation rate.
NOTE 27
PROVISIONS
2014
$’000
2013
$’000
208
240
208
240
933
1 080
933
1 080
Total provisions
1 141
1 320
Carrying amount at 1 July
1 320
9 174
Reductions arising from payments/other sacrifice of future economic benefits
Less provisions transferred to TAFE SA on restructure
Additional provisions recognised
(179)
-
(8 074)
220
Carrying amount at 30 June
1 141
1 320
Current
Workers' compensation
Non-current
Workers' compensation
A liability has been reported to reflect unsettled workers' compensation claims. The workers compensation provision is based on an
actuarial assessment performed by the Public Sector Workforce Relations Branch of the Department of the Premier and Cabinet. P 106
08 FINANCIAL STATEMENTS
NOTE 28
OTHER LIABILITIES
2014
$’000
2013
$’000
Other liabilities
658
495
Total other liabilities
658
495
Current
CORRECTION OF ERROR
The comparatives have been adjusted for a $0.006 million overstatement for unearned revenue between DFEEST and TAFE SA.
NOTE 29
INVESTMENTS
Austraining
International
Pty Ltd
$’000
Austraining
International
Pty Ltd
$’000
400
100%
400
100%
2014
$’000
2013
$’000
Balance at 1 July
Share of operating profit/(loss) after income tax
5 940
163
6 289
(349)
Total investments
6 103
5 940
Contributed capital in subsidiary company
Share of retained profit
Retained profits attributable to subsidiary company
AUSTRAINING INTERNATIONAL PTY LTD
Austraining International Pty Ltd, which has a reporting date of 30 June, is controlled by the Minister for Employment, Higher Education
and Skills. Its principal activity is to secure international contracts for work in VET. The current investment value is an estimate of fair value and is based on unaudited financial statements as at 30 June 2014.
NOTE 30
EQUITY
2014
$’000
2013
$’000
Retained earnings
Revaluation surplus
Financial asset available-for-sale revaluation surplus
Contributed capital
324 474
328 011
3 499
173 474
313 387
354 313
3 336
112 477
Total equity
829 458
783 513
The revaluation surplus is used to record increments and decrements in the fair value of land and buildings to the extent that they offset
one another. P 107
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
NOTE 31
UNRECOGNISED CONTRACTUAL COMMITMENTS
2014
$’000
2013
$’000
Within one year
Later than one year and not later than five years
2 942
6 098
2 797
2 221
Total remuneration commitments
9 040
5 018
Remuneration commitments
Commitments for the payment of salaries and other remuneration under fixed-term
employment contracts in existence at the reporting date but not recognised as liabilities are
payable as follows:
Amounts disclosed include commitments arising from executive contracts. The department does not offer remuneration contracts
greater than five years.
2014
$’000
2013
$’000
Within one year
Later than one year and not later than five years
Later than five years
1 892
198
-
50 346
4 103
2 280
Total capital commitments
2 090
56 729
Capital commitments
Capital expenditure contracted for at the reporting date but are not recognised as liabilities in
the financial statements are payable as follows:
The department's capital commitments mainly relate to ICT contracts.
2014
$’000
2013
$’000
Within one year
4 605
3 233
Total other commitments
4 605
3 233
Other commitments
The department's other commitments relate to agreements for Productivity Places Program contracts, cleaning contracts,
and other procurement.
2014
$’000
2013
$’000
Within one year
Later than one year and not later than five years
6 506
10 668
5 500
14 756
Total operating lease commitments
17 174
20 256
Operating leases commitments
Commitments in relation to operating leases contracted for at the reporting date but not
recognised as liabilities are payable as follows:
The department's operating leases are for office accommodation, equipment and motor vehicles. Office accommodation is leased from
the Department for Planning, Transport and Infrastructure. The leases are non-cancellable with some leases having the right of renewal.
Rent is payable in arrears. Motor vehicles are leased from SA Financing Authority through their agent LeasePlan Australia.
P 108
08 FINANCIAL STATEMENTS
NOTE 32
CONTINGENT ASSETS AND LIABILITIES
ASSETS
The department is in the process of reviewing a potential breach of contractual obligation relating to bridging units undertaken by up to
15 Skills for All training providers.
The department will seek information from each training provider about the evidence they hold to justify the use of the bridging units so
that a position can be formed on whether overpayments have been made.
LIABILITIES
The Minister for Employment, Higher Education and Skills has provided a $3 million guarantee to Austraining International Pty Ltd which
has not been invoked as at 30 June 2014. The Minister for Employment, Higher Education and Skills has entered an agreement to provide Le Cordon Bleu with a 10 year interest
free loan of $7 million conditional upon Le Cordon Bleu entering into a building contract for the development of Le Cordon Bleu's city
training facility.
NOTE 33
TRANSFERRED FUNCTIONS
2014 TRANSFERRED OUT TO TAFE SA
In June 2013, the Chief Executives of DFEEST and TAFE SA authorised the transfer of approximately 100 staff from DFEEST to TAFE SA
pursuant to Section 9 of the Public Sector Act 2009. These transfers were in accordance with a decision taken by the TAFE SA Board to
establish autonomous corporate services within TAFE SA. The transfer became effective from 1 July 2013. On transfer, DFEEST released the following liabilities:
$’000
Payables
Employee benefits liability
220
3 488
Total liabilities
3 708
Total liabilities transferred
(3 708)
Liabilities transferred by the department as a result of the administrative restructure were at the carrying amount recorded in the
Statement of Financial Position immediately prior to transfer. The liabilities have been charged directly to equity.
2013 TRANSFERRED OUT TO TAFE SA
Under the Public Sector (Reorganisation of Public Sector Operations) Notice 2012, from 1 November 2012 TAFE SA was proclaimed as a
Statutory Corporation, and all assets and liabilities relating to TAFE SA within DFEEST were transferred out to the new entity.
On transfer, DFEEST released the following assets and liabilities:
$’000
Cash
Receivables
Inventories
Property, plant & equipment
Intangible assets
60 109
19 418
905
16 593
11 838
Total assets
P 109
108 863
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
NOTE 33
TRANSFERRED FUNCTIONS CONTINUED
$’000
Payables
Employee benefits liability
Provisions
Other liabilities
11 424
65 413
8 074
3 500
Total liabilities
88 411
Total net assets transferred
20 452
Net assets transferred by the department as a result of the administrative restructure were at the carrying amount recorded in the
Statement of Financial Position immediately prior to transfer. The net assets have been charged directly to equity.
NOTE 34
AFTER BALANCE DAY EVENTS
As proclaimed on 26 June 2014 and in accordance with Section 26 of the Public Sector Act 2009, from July 1 2014, the title of the
Department for Manufacturing, Innovation, Trade, Resources and Energy is altered to the Department of State Development (DSD).
In addition the Public Sector (Reorganisation of Public Sector Operations) Notice 2013 and 2014 (dated 15 June 2014) proclaimed that
effective from 1 July 2014 DFEEST, Arts SA, Aboriginal Affairs and Reconciliation division, Office of the Economic Development Board,
Invest in SA and Health Industries SA will be transferred to DSD.
In September 2014, the Chief Executive of DSD and the Acting Chief Executive of TAFE SA authorised the transfer of approximately 80 staff
from DSD to TAFE SA pursuant to Section 9 of the Public Sector Act 2009. These transfers were in accordance with a decision taken by the
TAFE SA Board to establish autonomous ICT services within TAFE SA. The financial effect of this change has not been reflected in the
2013-14 financial statements due to the transfer becoming effective from 8 September 2014.
NOTE 35
REMUNERATION OF BOARD AND COMMITTEE MEMBERS
Members that were entitled to receive remuneration during the 2013-14 financial year were:
Audit and Risk Management Committee
C Dunsford Chair
W Einarson ^
Premier's Science & Industry Council
L Cobiac ^
D Evans ^ I Gould
M Heard
A Lopez
T Monro
D Mutton
R Popelka-Filcoff
C Priest
L Read
K Reynolds P Sandercock
K Scott
from January 2014
resigned September 2013
P 110
08 FINANCIAL STATEMENTS
NOTE 35
REMUNERATION OF BOARD AND COMMITTEE MEMBERS CONTINUED
Premier's Science & Industry Council continued
P Tharenou
G Todd ^ G Young ^
resigned September 2013
from January 2014
Training and Skills Commission
J Buchanan
I Curry Deputy to J Newlyn
P Dowd
A Downs ^ Deputy to S Myatt
J Giles ^ C Haythorpe K Heneker
M Keating
N McBride S Myatt
J Newlyn A Nieuwenhuis
L Palmer
A Smith Chair
resigned September 2013
from December 2013
from December 2013
from November 2013
Training and Skills Commission Access and Participation Reference Group
J Giles K Heneker G McFadyen
P Wright
resigned September 2013
from September 2013 - chair
Training and Skills Commission Quality Reference Group
A Coker
S Forrest
D Frith S Holden
A Nieuwenhuis Chair
E Sckrabei ^ resigned September 2013
from October 2013
Training and Skills Development Act 2008 Assessor Panel
J Adler ^
R Buckler ^
A Cartledge ^
I Curry ^
S Frazer ^
D Jeffries ^
^ Indicates a member who is entitled to receive remuneration but did not receive remuneration during 2013-14.
P 111
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
NOTE 35
REMUNERATION OF BOARD AND COMMITTEE MEMBERS CONTINUED
The number of members whose remuneration from the entity falls within the following bands is:
$1 - $9 999
$10 000 - $19 999
$20 000 - $29 999
$30 000 - $39 999
$40 000 - $49 999
$60 000 - $69 999
2014
No. of members
2013
No. of members
22
1
10
1
-
26
6
3
1
2
1
34
39
Remuneration of board members reflects all costs of performing board/committee member duties including sitting fees, superannuation
contributions, fringe benefits tax and any other salary sacrifice arrangements. The total remuneration received or receivable by members
was $0.4 million ($0.3 million).
Amounts paid to a superannuation plan for board/committee members was $19 337 ($20 579).
Unless otherwise disclosed, transactions between members are on conditions no more favourable than those that it is reasonable to
expect the entity would have adopted if dealing with the related party at arm's length in the same circumstances.
NOTE 36
CASH FLOW RECONCILIATION
2014
$’000
2013
$’000
Cash and cash equivalents disclosed in the Statement of Financial Position
41 560
62 712
Balance as per the cash flow statement
41 560
62 712
2014
$’000
2013
$’000
Net cash provided by operating activities
Depreciation and amortisation
Gain/loss on sale of assets
Transfer out for administrative restructure
Decrease/(increase) in employee benefits
(Decrease)/increase in receivables
(Decrease)/increase in inventories
Decrease/(increase) in payables
(Increase)/decrease in other liabilities
Decrease in provisions
Revenues from government
Payments to government
(31 597)
(21 905)
(156)
(3 708)
4 821
8 126
51 782
(163)
179
(506 219)
1 411
9 854
(22 442)
(12)
(68 088)
67 979
(14 279)
(898)
(34 540)
3 633
7 854
(434 139)
8 247
Net cost of providing services
(497 429)
(476 831)
Reconciliation of cash and cash equivalents - cash at year end as per:
Reconciliation of net cash provided by operating activities to net cost of
providing services
P 112
08 FINANCIAL STATEMENTS
NOTE 37
FINANCIAL INSTRUMENTS
Table 37.1 Categorisation of financial instruments
Details of 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 with respect to each class of financial asset, financial liability and equity instrument
are disclosed in Note 2.
Category of financial assets and
financial liabilities
Statement of financial position
line item
Note
No.
2014
carrying
amount
$'000
2013
carrying
amount
$'000
Financial assets
Cash and cash equivalents
Receivables
Cash and cash equivalents
Receivables (1) (2)
19
20
41 560
15 353
62 712
7 852
Financial assets
Investments
29
6 103
5 940
Payables
25
48 890
96 440
14 126
(19 936)
Financial liabilities
Financial liabilities at cost
Total net financial assets at cost
(1) eceivables and payable amounts disclosed here exclude amounts relating to statutory receivables and payables. In government,
R
certain rights to receive or pay cash may not be contractual and therefore in these situations, the requirements will not apply. Where
rights and obligations have their source legislation such as levy receivables/payables, tax equivalents, commonwealth tax etc they
would be excluded from the disclosure. The standard defines contract as enforceable by law.
(2) eceivables amount disclosed here excludes prepayments. Prepayments are presented in Note 20 as trade and other receivables in
R
accordance with paragraph 78(b) of AASB 101. However, prepayments are not financial assets as defined in AASB 132 as the future
economic benefit of these assets is the receipt of goods and services rather than the right to receive cash or another financial asset.
DFEEST does not recognise financial assets or financial liabilities at fair value with the exception of the investment in Austraining which is
disclosed at fair value derived from data not observable in a market (refer Note 29).
CREDIT RISK
Credit risk arises when there is the possibility of the department’s debtors defaulting on their contractual obligations resulting in financial
loss to the department. The department measures credit risk on a fair value basis and monitors risk on a regular basis.
The carrying amount of financial assets as detailed in table 37.1 represents the department's maximum exposure to credit risk.
The department has minimal concentration of credit risk. The department has policies and procedures in place to ensure that transactions
occur with customers with appropriate credit history. The department does not engage in high risk hedging for its financial assets.
Allowances for impairment of financial assets is calculated on past experience and current and expected changes in client credit
rating. Currently the department does not hold any collateral as security to any of its financial assets. Other than receivables, there is no
evidence to indicate that the financial assets are impaired. Refer to Note 20 for information on the allowance for impairment in relation
to receivables.
P 113
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
NOTE 37
FINANCIAL INSTRUMENTS CONTINUED
The following table discloses the ageing of financial assets, past due, including impaired assets past due.
Table 37.2 Ageing analysis of financial assets
Past due by
Overdue for < 30 days
$’000
Overdue for 30-60 days
$’000
Overdue for > 60 days
$’000
Total
$’000
2014
Not impaired
Receivables
1
11
397
409
2013
Not impaired
Receivables
34
46
71
151
The following table discloses the maturity analysis of financial assets and financial liabilities.
Table 37.3: Maturity analysis of financial assets and liabilities
Contractual maturities
Carrying amount
($’000)
< 1 year
($’000)
1-5 years
($’000)
> 5 years
($’000)
Cash & cash equivalent
Receivables
Other financial assets
41 560
15 353
6 103
41 560
15 330
-
-
23
6 103
Total financial assets
63 016
56 890
-
6 126
48 890
48 890
-
-
48 890
48 890
-
-
Cash & cash equivalent
Receivables
Other financial assets
62 712
7 852
5 940
62 712
7 829
-
-
23
5 940
Total financial assets
76 504
70 541
-
5 963
96 440
96 440
-
-
96 440
96 440
-
-
2014
Financial assets Financial liabilities
Payables
Total financial liabilities
2013
Financial assets Financial liabilities
Payables
Total financial liabilities
LIQUIDITY RISK
Liquidity risk arises where the department is unable to meet its financial obligations as they fall due. The department is funded principally
from appropriations from the SA Government. The department works with the department of Treasury and Finance to determine the
cashflows associated with its government approved program of work and to ensure funding is provided through SA Government
budgetary processes to meet the expected cashflows.
P 114
08 FINANCIAL STATEMENTS
NOTE 37
FINANCIAL INSTRUMENTS CONTINUED
The department settles undisputed accounts within 30 days from the date of the invoice or date the invoice is first received. In the event
of a dispute, payment is made 30 days from resolution.
The department's exposure to liquidity risk is insignificant based on past experience and current assessment of risk.
The carrying amount of financial liabilities recorded in Table 37.1 represents the department's maximum exposure to financial liabilities.
NOTE 38
ADMINISTERED ITEMS
Minister's salary and allowances
2014
$’000
2013
$’000
Employee benefits
286
273
Total administered expenses
286
273
Revenues from SA Government
286
273
Total administered income
286
273
-
-
Administered expenses
Administered income
Total employee benefits
MINISTER'S SALARY AND ALLOWANCES
Minister's salary and allowances represents the amount pursuant to Parliamentary Remuneration Act 1990. P 115
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
08 FINANCIAL STATEMENTS
P 116
LIST OF FIGURES /
LIST OF TABLES
LIST OF FIGURES
Figure 1.
South Australian VET students by provider type, 2013
P 12
Figure 2.
Skills for All, changes in course enrolments, 2013
P 13
Figure 3.Distribution of projected industry demand for VET qualifications and Skills for All enrolments in 2013 across
TaSC occupation groups
P 13
Figure 4.
VET system efficiency
P 14
Figure 5.
Impact of efficiency improvement on VET student numbers
P 15
Figure 6.
Domestic enrolments for South Australian universities, 2008 to 2012
P 20
Figure 7.
Overview of revenue sources for 2013-14
P 38
Figure 8.
Overview of operating expenses for 2013-14
P 39
Figure 9.
VET students in South Australia by cohort, percentage change between 2012 and 2013
P 51
Figure 10.
South Australian VET students in 2013 by provider type
P 51
Figure 11.
South Australian VET students in 2013 by fund source
P 52
Figure 12.
VET students in South Australia, percentage change, by qualification level, between 2012 and 2013
P 52
Figure 13.
South Australian VET students in 2013 by qualification levels
P 53
Figure 14.
South Australian VET students in 2013 by age group
P 54
Figure 15.
South Australian FYTE in 2013 by provider type
P 56
Figure 16.
VET course enrolments in South Australia in 2013 by provider type
P 58
Figure 17.
VET course enrolments in South Australia, percentage change between 2012 and 2013
P 59
Figure 18.
South Australian VET course enrolments in 2013, by qualification levels
P 59
Figure 19.
VET course completions in South Australia, percentage change between 2011 and 2014 P 60
Figure 20.
South Australia VET course completions in 2012, by qualification levels
P 61
LIST OF TABLES
Table 1.
Progress against SASP targets
P9
Table 2.
Website service activity, 1 July 2013 to 31 May 2014
P 14
Table 3.
Enrolment trends by sector, 2009 to 2013 (full year)
P 22
Table 4.
Enrolment trends by country, 2012 to 2013 (full year)
P 23
Table 5.
Account payment performance
P 36
Table 6.
Consultants
P 37
Table 7.
Details of consultancy expenditure more than $10 000
P 37
Table 8.
Summary of financial information
P 38
P 117
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
LIST OF FIGURES / LIST OF TABLES
LIST OF TABLES CONTINUED
Table 9.
Overview of operating expenses 2013-14
P 39
Table 10.
Performance against annual energy usage targets
P 41
Table 11.
Total number of employees
P 42
Table 12.
Employee number by gender
P 42
Table 13.
Number of employees who were recruited to and separated from the department
P 42
Table 14.
Age distribution of employees by headcount and gender
P 43
Table 15.
Number of employees by salary bracket
P 43
Table 16.
Status of employees in current position
P 43
Table 17.
Status of FTE employees in current position
P 43
Table 18.
Number of executives by gender and classification
P 44
Table 19.
Aboriginal and/or Torres Strait Islander employees
P 44
Table 20.
Cultural and linguistic diversity
P 44
Table 21.
Number of employees identified as having disability
P 44
Table 22.
Average leave days
P 44
Table 23.
Voluntary flexible working arrangements
P 45
Table 24.
Documented review of individual performance management
P 45
Table 25.
Graduate numbers by gender
P 45
Table 26.
Employment opportunities by gender
P 46
Table 27.
Training and development expenditure
P 47
Table 28.
Work health and safety (WHS) comparative data
P 47
Table 29.
VET students by provider type, South Australia and Australia, 2012 and 2013
P 50
Table 30.
VET students by fund source, South Australia and Australia, 2012 and 2013
P 52
Table 31.
VET students by age, South Australia and Australia, 2012 and 2013
P 53
Table 32.
VET students by remoteness region, South Australia and Australia, 2012 and 2013
P 54
Table 33.
VET students by fields of education, South Australia and Australia, 2012 and 2013
P 55
Table 34.
VET FYTE by provider type, South Australia and Australia, 2012 and 2013
P 56
Table 35.
VET FYTE by fund source, South Australia and Australia, 2012 and 2013
P 56
Table 36.
VET hours by provider type, South Australia and Australia, 2012 and 2013 (‘000 000)
P 57
Table 37.
VET hours by fund source, South Australia and Australia, 2012 and 2013 (‘000 000)
P 57
Table 38.
VET course enrolments by provider type, South Australia and Australia, 2013 and 2013
P 58
Table 39.
VET subject enrolments by provider type, South Australia and Australia, 2013 and 2013
P 59
Table 40.
Course completions by provider type, South Australia and Australia, 2011 and 2012
P 60
Table 41.
Course completions by provider type, South Australia and Australia, 2012 and 2013
P 61
P 118
P 119
DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14
P 120
DEPARTMENT OF STATE DEVELOPMENT
Level 4, 11 Waymouth Street
ADELAIDE, SA 5000
GPO Box 320
ADELAIDE, SA 5001
Telephone: +61 8 8226 3821
Facsimile: +61 8 8226 9533
Published September 2014.
No responsibility for any loss or damage caused by reliance on any of the information or advice provided by or on behalf of the State of
South Australia, or for any loss or damage arising from acts or omissions made, is accepted by the State of South Australia, their officers, servants
or agents. Produced by the Department of State Development © September 2014. Content correct at time of printing.
www.statedevelopment.sa.gov.au
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DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY
ANNUAL REPORT 2013-14