Performance Measures in Private Education and Training
Guidance Notes
Further information on the survey questions.
You do not have to read this document.
Provider Details
Participant No:
The participant number is your individual identification number. All numbers take the form
hcacpetNNN-NN (eg. hcacpet164-00). The first three numbers relate to your group and the
last two numbers relate to the individual training business.
At the time of mailing the survey form to you, we do not know how many different types of
training businesses you control. If you operate only one type of training business then you
need only complete one survey form. Your participant number will take the form
hcacpetNNN-00 (eg. hcacpet164-00). The two zeros after the dash indicate that you are the
only business in your group. If it is necessary to complete more than one survey form, please
contact Hall Chadwick (John Somerset or Simon Macklin on 07 3233 3555)
Contact Details
Hall Chadwick has recorded a number of details in relation to your business on the front of
your survey form. Please check the recorded details and make any changes in the
“Amendments to Contact Details” box on the front of the survey form.
It is important that these details are correct, because it will be relied upon for the purpose of
corresponding with you, including the posting of your confidential report.
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Performance Measures in Private Education and Training
1.
Guidance Notes
Training Industry
1.1 – 1.20 Training Industry
Once information is gathered from survey participants, Hall Chadwick will calculate a number
of ratios for the purpose of analysing performance between training providers.
We recognise that many factors affect the cost structure and operations of training providers.
An important determinant of these differences is the industry that providers deliver their
programs to.
Based on research carried out by the Australian National Training Authority (ANTA), the
categories listed in questions 1.1 to 1.19 should be sufficient for the purposes of placing
survey participants into like groups for analysis purposes.
Based on the student contact hours delivered during the period covered by this survey, please
apportion your delivery between the nineteen categories. It may be that 100% of your delivery
will be in one category.
Reasonable estimates are acceptable where it is impractical to obtain details.
2.
General Information
2.1
Area of facilities
The floor area of buildings used in your business, measured as an estimate of square metres.
Your estimate should include all floor space including general learning areas, office space,
retail space and other storage space. If you lease premises the estimate should be based on the
total area leased.
2.2
Placing graduates with employers
If you deliver courses that are endorsed or recognised by employers as meeting their
employment requirements, then the probability of graduates entering the workforce after
graduation may be higher than if your courses were not endorsed or recognised. If you have a
system that matches graduates to potential employers, this may strengthen the employment
opportunities for your graduates, and the long-term success of your business.
2.3
Monitoring employment outcomes of students
By monitoring employment outcomes, you may be able to identify practices that are
successful in assisting your graduates to achieve employment or further their studies.
Each year ANTA publishes a national report on the Australian Vocational Education and
Training System. This report summarises and presents data gathered from state systems in
relation to VET outputs, stocks of skills, employer and student views, and cost of delivery.
One of these measures (Key Performance Measure 4) gathers data on the percentage of
graduates working or in further study after their course (88% in 1999). This is compared to the
percentage before study (78% in 1999).
Do you have a system for monitoring employment or further study activities of your
graduates?
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Performance Measures in Private Education and Training
2.4
Guidance Notes
Monitoring employer satisfaction
By monitoring employer satisfaction, a provider may be able to better identify graduate skills
valued by employers, and consequently improve the employment prospects of graduates.
Better employment outcomes should result in market support for a provider’s study programs.
Do you have a system in place for monitoring if employers of your graduates are satisfied with
their skills acquired from your course?
2.5
Do you offer qualifications from a training package?
We are trying to determine the extent to which nationally endorsed training packages have
been adopted by the private education and training sector.
Do you offer one or more qualifications from a nationally endorsed training package?
2.6
Do you have a business plan?
Do you have a written business and/or strategic plan, generally including a list of actions that
you must do in order to execute that plan?
2.7
Word-of-mouth referrals
This is an estimate of the number of enrolments that you receive as a result of satisfied
students or other advocates of your business recommending your courses to a colleague.
2.8
Percentage of students that successfully completed study components
Of the student contact hours (SCHs) that students intended to complete during the period 1
July 1999 to 30 June 2000 (or substituted period covered by this survey) please estimate the
following percentage
Successfully completed
--------------------------------------------------------------------------Successfully completed + not successfully completed + withdrawn
Do not include SCHs relating to studies that are continuing into another collection period, are
non-assessable, status (or credit) granted through recognition of prior learning or credit
transfer arrangements.
2.9
Articulation arrangements with other VET providers
Nationally, an average of 40% of students who complete their current study, continue with
further study. Therefore if a student can apply completed study with one provider as a credit
towards, or entry into, a course of study with another VET provider, then the first provider’s
course adds value to a student’s path of study.
This may be an important distinction in determining long-term success of your business.
Of the products that you sell, (training packages and other programs), approximately what
percentage of those products are recognised by other VET providers to allow your students
entry into their courses?
2.10
Articulation arrangements with Higher Education providers
As with 2.9 but referring to higher education providers.
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Performance Measures in Private Education and Training
Guidance Notes
2.11 – 2.13 How do you deliver your training?
Training packages provide a new foundation for VET programs leading to nationallyrecognised qualifications.
It is important for ACPET to understand the methods used by its members to deliver training
by building a profile of the proportion of training delivered using training packages, other
accredited programs and unaccredited programs.
As accurately as is practical possible, based on SCHs delivered during the period covered by
this survey, would you please apportion the percentage of SCHs delivered between three
categories - training packages, other accredited programs and unaccredited training.
2.14
Students who complete 95% of their intended study
The overall completion rate gives a broad indication of the success in assessable training of all
students doing VET. However, it is also interesting to look at the success from the standpoint
of the individual student in both assessable and non-assessable training at the unit or module
level.
This question therefore asks you to estimate the percentage of students that, to a significant
degree (95%) achieve what they set out to do – be it to complete, or simply attend, a module
or a whole course.
3.
Financial Information
Profit & Loss
The following questions relate to income and expenditure for the year 1 July 1999 to 30 June
2000 or substituted period (for example your accounting year may end on 31 December 2000).
You should obtain this information from your profit and loss statement.
Many businesses are operated through a number of different entities. For example, your
training activities may be operated through a private company, but administration activities
may be carried out through a service trust. The service trust may charge a management fee to
the company.
The purpose of the financial performance ratios included in the report is to help you analyse
the operations of your business as if it were a stand-alone entity operated by an independent
party. This helps you to identify areas that you doing well and not so well. It also helps to
determine the true value of a business and return on investment.
Therefore, we request that if you carry out your business through a number of entities, that, as
best as is practical for you to do so, please combine the operations of the different entities for
the purpose of this survey document. Record data as a single operating result without the
effect of internally generated mark-ups and adjustments between different entities within your
group.
If you have a number of distinct businesses however, it may be appropriate to complete more
than one survey form.
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Performance Measures in Private Education and Training
3.1
Guidance Notes
Total Income
Insert your total sales (fees, grants, other) in dollars for the year. Include sales from all
training, sales of items sold and any other core business income.
3.2
Fees Charged to Domestic Students
Include fees charged to students who are ordinarily resident in Australia. Include tuition and
administration fees, short course income, contracting and consulting fees.
3.3
Fees Charged to International Students
Include tuition and administration fees charged to students who are ordinarily not resident in
Australia. Include client fees, short course income, contracting and consulting fees etc.
3.4
State Government Funding
Any income shown in your profit and loss statement received from the State government
3.5
Commonwealth Government Funding
Any income shown in your profit and loss statement received from the Commonwealth
government
3.6
Other funds received from government
This may include income received from local government/councils.
3.7
Income from ancillary activities
Income from sale of books and materials, canteen, live work (hairdressing, restaurants etc),
printing childcare etc.
3.8
Income from sale of assets
You may have sold surplus assets during the period. If your accounts record a profit on the
sale of these assets, please include that figure at this question.
3.9
Other income
Insurance recovery, rental income, interest and other investment income, car parking fees,
other income not shown elsewhere.
3.10
Revenue received from accredited training
This figure is extracted from the total income figure recorded at question 3.1.
Questions 3.2 to 3.9 (also a dissection of total income recorded at question 3.1) show where
your income comes from. This question (3.10) indicates, not who pays, but what amount of
the income is in relation to the delivery of training that has been accredited (training packages,
ELICOS, Higher education or other).
The income recorded at this question will also be included amongst the dissections in
questions 3.2 to 3.9.
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Performance Measures in Private Education and Training
3.11
Guidance Notes
Total expenditure
Your operating expenses will be shown in your financial accounts for the year ended 30 June
2000 or substituted period. Total expenses as listed on your survey form should be equal to
(or be close to) the total operating expenses in your financial accounts. Please note that total
expenses should include the cost of goods sold that may be accounted for in a separate trading
account and relating to goods sold through a shop that you operate as part of your business.
One reason that total expenses may vary from what is recorded in your accounts may be for
any adjustment that you have made for proprietors remuneration – refer notes to question 3.12
below.
3.12
Teaching Salaries
Include full-time, part-time, consultant and casual teaching wages. These are costs that are
directly related to the delivery provision and support activity of a training program including
costs associated with Heads of Departments.
If a wage is paid to the proprietor, that wage should be included as well. Where this wage is
unusually high or low, substitute a reasonable figure. For example, if a proprietor draws a
wage of $20,000 per year where an external manager employed to fulfil the same roll would
demand $50,000 per year; you would include $50,000 in salaries and wages rather than
$20,000.
3.13
Administration salaries
Include full-time, part-time, consultant and casual wages for activity relating to student, staff,
financial and management administration, marketing, administration of exams etc.
3.14
Other salaries
Include full-time, part-time, consultant and casual wages relating to activity for a primary
purpose of supporting the education and welfare of students by the provision of health,
counselling, accommodation, employment, childcare, recreation, loans, scholarships and food
services, lab and workshop assistants etc.
3.15
Salary on-costs
Include expenditure on Superannuation, WorkCover, Payroll tax, fringe benefits tax and other
salary related costs.
3.16
Staff training and development
Include costs of conferences (accom., meals, travel etc), seminars, in house training.
3.17
Consumables
The cost of expendable materials consumed in the delivery of training programs.
3.18
Communication
Postage, telephone, fax, internet and network communication charges etc.
3.19
Interest expense
Insert your interest expense for the year. Include all interest paid on bank overdrafts, bank
loans and other borrowings.
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Performance Measures in Private Education and Training
3.20
Guidance Notes
Depreciation and amortisation
Assets typically suffer a decline in value over their lives due to wear and tear and
obsolescence. Depreciation is a process of allocation of the cost of this decline in value over
the life of the asset. Include all depreciation on fixed assets as well as amortisation (like
depreciation but generally relates to assets that are not tangible) associated with assets used in
your business. Refer to your profit and loss statement.
3.21
Domestic promotion
Include advertising of courses, information and promotional services (brochures, videos etc)
that are aimed at the domestic market.
3.22
International promotion
Include advertising of courses, information and promotional services (brochures, videos etc)
that are aimed at the international market.
3.23
Travel and accommodation
Include motor vehicle expenses, domestic and overseas travel and accommodation.
3.24
Property expenses
Includes expenses relating to the planning, maintenance, repair of property, plant and
equipment and upkeep of buildings and grounds. Do not include property rent here
3.25
Rent of facilities
Include all lease or rental payments relevant to the lease of property. If your lease agreement
requires you to pay outgoings (rates, water etc), include those costs.
3.26
Lease and rental payments for plant and equipment etc.
Include rental and/or lease of plant and equipment used in your business. If practical, please
include the lease of motor vehicles at question 3.23, unless motor vehicles are integral to the
delivery of your training eg. Driver education courses, in which case you would include those
lease payments at this question.
3.27
Bad debts
If you record bad debts expense in your profit and loss statement, please show the amount
here.
3.28
Other expenses
Add all expenses listed at questions3.12 to 3.27. Deduct this amount from the total
expenditure amount at question 3.11. The difference is recorded at this question. Please note
that total expenses should include the cost of goods sold that may be accounted for in a
separate trading account and relating to goods sold through a shop that you operate as part of
your business
3.29
Operating profit (before tax)
This is a double check, to ensure that the survey details are correct. The net profit before
income tax, listed in your financial statements for the year should be equal to total income
recorded at question 3.1 minus total expenses recorded at question 3.11. The only difference
may be because you have adjusted wages for the proprietor – refer notes to question 3.12.
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Performance Measures in Private Education and Training
Guidance Notes
Balance Sheet
The following questions relate to assets (things that you own) and liabilities (thing that you
owe) as at 30 June 2000 or substituted period.
3.30
Total current assets
Current assets are things that you own which are cash or are generally converted into cash
within twelve (12) months. Total current assets should be a group total on your balance sheet.
You will be asked further questions below in relation to specific current asset items. The
amount to be inserted in this question should be the total of all current assets even though
some amounts will be included again in later questions.
3.31
Total non-current assets
Non-current assets are things that you own which would not usually be converted into cash
within a twelve (12) month period. Total non-current assets should be a group total on your
balance sheet.
You will be asked further questions below in relation to specific asset items. The amount to
be inserted in this question should be the total of all non-current assets even though some
amounts may be included again in later questions.
3.32
Total current liabilities
Current liabilities are debts that you are likely to pay within twelve (12) months. Total current
liabilities should be a group total on your balance sheet.
You will be asked further questions below in relation to specific current liabilities items. The
amount to be inserted in this question should be the total of all current liabilities even though
some amounts will be included again in later questions.
3.33
Total non-current liabilities
Non-current liabilities are debts that you plan to pay over a period of more than twelve (12)
months. Total non-current liabilities should be a group total on your balance sheet.
You will be asked further questions below in relation to specific non-current liabilities. The
amount to be inserted in this question should be the total of all non-current liabilities even
though some amounts will be included again in later questions.
3.34
Total equity (reserves & retained profits)
If you subtract the value of the debts that you owe from the value of the things that you own,
this hopefully will give you a surplus. This is known as equity.
Total equity should be a group total on your balance sheet.
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Performance Measures in Private Education and Training
3.35
Guidance Notes
Total cash at bank an on hand
Cash at bank and on hand should be listed under current assets on the balance.
If you had a number of different bank accounts or bank overdrafts as at 30 June 2000 then you
will need to add the balance of all of these accounts to work out your total cash at bank.
Remember, if your net cash at bank was negative (in overdraft) then you will need to put a
negative sign (-) in front of the total cash at bank.
3.36
Total debtors
Your total debtors represent the amount of money that your customers owed you at year-end.
Debtors should be listed on you balance under current assets.
3.37
Investment
Investments should be listed on you balance sheet generally under current assets or noncurrent assets.
If you have a number of different investment accounts listed on your balance sheet you will
need to add the balance of all of the investment accounts to work out the figure to insert here.
3.38
Total bank debt
Insert your total bank debt as at 30 June 2000 or substituted period end. Bank debt should be
listed on you balance sheet and may be referred to as bank loans or overdrafts. You will
generally find these accounts listed under the current liabilities and non-current liabilities.
If you have a number of different accounts relating to bank debt (loans, overdraft, etc) listed
on your balance sheet you will need to add the balance of all of these accounts to work out the
figure to insert here. If you have a bank overdraft at year-end, it will be included in question
3.35 and this question.
3.39
Purchases of property
If you bought land and buildings during the year, please show the purchase price here.
3.40
Purchase of plant and equipment
If you bought plant and equipment during the year (paid cash or used a loan to fund the
purchase), please include the cost price of the acquisitions here. Do not include leased items
here.
3.41
Plant and equipment leased during the year
Many businesses acquire plant and equipment by leasing the items required. Please list the
value of plant and equipment that you leased during the year.
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Performance Measures in Private Education and Training
4.
STAFFING
4.1
Full-time teaching staff
Guidance Notes
Insert the total number of teaching staff employed on a full-time or regular part time basis as
at 30 June 2000 or substituted period. Full-time and part-time employees are normally entitled
to annual leave sick pay and termination benefits.
Teaching staff are those involved in the preparation and delivery of training, examinations,
including delivery provision and support (heads of departments etc.
If you had, for example, 11 staff but one only works half the week, you should record 10.5 full
time equivalence.
4.2
Casual teaching staff
Include teaching staff that are not full-time or part-time.
4.3 – 4.4 Administration staff
Include staff associated with student, staff, financial and management administration,
marketing, administration of exams etc.
4.5 – 4.6 Other staff
Include health, counselling, accommodation, career officers, loans assistance, food services,
maintenance staff, lab and workshop assistants etc.
5.
STUDENTS
We will use the data from this table to calculate many different ratios. It may also be used
when selecting samples of training providers for the purpose of preparing your report
comparing your performance against providers of similar services – compare like with like.
The addition of SCH’s listed in the Domestic and International columns should equal the total
SCH’s delivered by your business during the year ended 30 June 2000 or substituted period.
For each AQF level of SCH’s that you delivered during the year, please estimate the
percentage of units delivered between the following modes
(1)
(2)
(3)
(4)
face-to-face on-campus delivery,
off-campus – usually work place delivery,
computer delivered (probably self-paced) either on-campus or off-campus
external studies – usually traditional paper based.
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