Financial Performance Survey for Private Education Providers
GUIDANCE NOTES
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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Financial Performance Survey for Private Education Providers
GUIDANCE NOTES
1.
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 longterm 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.
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GUIDANCE NOTES
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?
2.4
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.
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Financial Performance Survey for Private Education Providers
GUIDANCE NOTES
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.
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 nonassessable 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.
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Financial Performance Survey for Private Education Providers
GUIDANCE NOTES
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.
3.1
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
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GUIDANCE NOTES
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.
3.11
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.
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Financial Performance Survey for Private Education Providers
GUIDANCE NOTES
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.
3.20
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.
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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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Financial Performance Survey for Private Education Providers
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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Financial Performance Survey for Private Education Providers
GUIDANCE NOTES
3.35
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 or
surround the figure with brackets.
3.36
Total debtors
Your total debtors represent the amount of money that your customers owed you at
year ending 30 June 2000 (or substituted period). Debtors should be listed on your
balance under current assets.
3.37
Investment
Investments should be listed on you balance sheet generally under current assets or
non-current 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 yearend, 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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Financial Performance Survey for Private Education Providers
GUIDANCE NOTES
4.
STAFFING
Staff numbers in this section should be recorded as a number of full-time equivalent
staff. For example, if you had 11 staff but one only works half the week, you should
record 10.5 full time equivalence (FTE).
Where the proprietor is involved in a number of activities, ie teaching, administration,
and counselling, their time should be apportioned to those activities as per a full-time
equivalent. For example, if during a 40-hour week the proprietor does 20 hours
teaching, 10 hours in administration and 10 hours in counselling activities then 0.5
FTE would be recorded against question 4.1, 0.25 FTE would be recorded against
either question 4.3 or 4.4, and 0.25 FTE would be recorded against either question
4.5 or 4.6.
4.1
Full-time teaching staff
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).
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 Student Contact Hours (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.
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Financial Performance Survey for Private Education Providers
GUIDANCE NOTES
For each Australian Qualification Framework (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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