Portfolio Budget Statements 2015–16
Budget Related Paper No. 1.5
Education and Training Portfolio
Budget Initiatives and Explanations of
Appropriations Specified by Outcomes
and Programmes by Entity
© Commonwealth of Australia 2015
ISSN 2204-8561 (Print)
ISSN 2204-857X (Online)
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ii
iii
Abbreviations and conventions
The following notation may be used:
NEC/nec
..
n/a
nfp
$m
$b
not elsewhere classified
nil
not zero, but rounded to zero
not applicable (unless otherwise specified)
not for publication
$ million
$ billion
Figures in tables and in the text may be rounded. Figures in text are generally rounded
to one decimal place, whereas figures in tables are generally rounded to the nearest
thousand. Discrepancies in tables between totals and sums of components are due to
rounding.
Enquiries
Should you have any enquiries regarding this publication please contact
Susan Monkley, Chief Finance Officer, Department of Education and Training, on
13 33 97.
A copy of this document can be located on the Australian Government Budget website
at: www.budget.gov.au.
iv
USER GUIDE
TO THE
PORTFOLIO BUDGET STATEMENTS
v
USER GUIDE
The purpose of the 2015–16 Portfolio Budget Statements (PBS) is to inform Senators
and Members of Parliament of the proposed allocation of resources to government
outcomes by entities within the portfolio. Entities receive resources from the annual
appropriations acts, special appropriations (including standing appropriations and
special accounts), and revenue from other sources.
A key role of the PBS is to facilitate the understanding of proposed annual
appropriations in Appropriation Bills (No. 1 and No. 2) 2015–16 (or Appropriation
(Parliamentary Departments) Bill (No. 1) 2015–16 for the parliamentary departments).
In this sense the PBS are Budget related papers and are declared by the Appropriation
Acts to be ‘relevant documents’ to the interpretation of the Acts according to section
15AB of the Acts Interpretation Act 1901.
The PBS provides information, explanation and justification to enable Parliament to
understand the purpose of each outcome proposed in the Bills.
As required under section 12 of the Charter of Budget Honesty Act 1998, non-general
government sector entities are not consolidated into the Commonwealth general
government sector fiscal estimates and accordingly, these entities are not reported in
the PBS.
vi
CONTENTS
Portfolio overview ......................................................................................................... 1
Education and Training Portfolio Overview ..................................................................... 3
Entity resources and planned performance ............................................................... 7
Department of Education and Training ........................................................................... 9
Australian Curriculum, Assessment and Reporting Authority ....................................... 89
Australian Institute of Aboriginal and Torres Strait Islander Studies ........................... 111
Australian Institute for Teaching and School Leadership............................................ 133
Australian Research Council ....................................................................................... 149
Australian Skills Quality Authority ............................................................................... 179
Tertiary Education Quality and Standards Agency ..................................................... 201
Glossary ..................................................................................................................... 225
Acronyms ................................................................................................................... 228
vii
viii
PORTFOLIO OVERVIEW
1
2
Portfolio overview
EDUCATION AND TRAINING PORTFOLIO OVERVIEW
Ministers and portfolio responsibilities
The Portfolio Budget Statements (PBS) provide information about the Education and
Training portfolio. Through its portfolio entities, the Australian Government takes a
national leadership role in education—preschool, school, tertiary and international—
and research, skills and training. The department and its entities work with state and
territory governments, other Australian Government entities and a range of service
providers to provide high quality policy advice and services for the benefit of
Australia.
The Education and Training portfolio comprises the Department of Education and
Training (the department) and the following entities:

the Australian Curriculum, Assessment and Reporting Authority

the Australian Institute of Aboriginal and Torres Strait Islander Studies

the Australian Institute for Teaching and School Leadership

the Australian Research Council

the Australian Skills Quality Authority

the Tertiary Education Quality and Standards Agency.
A full outline of the Education and Training portfolio can be found at Figure 1 (see
page 4).
3
Portfolio Overview
Figure 1: Education and Training Portfolio Structure and Outcomes
The Hon Christopher Pyne MP
Minister for Education and Training
Senator the Hon Simon Birmingham
Assistant Minister for Education and Training
Senator the Hon Scott Ryan
Parliamentary Secretary to the Minister for Education and Training
Department of Education and Training
Lisa Paul AO PSM—Secretary
Outcome 1
Improved early learning, schooling, student educational outcomes and transitions to
and from school through access to quality support, parent engagement, quality
teaching and learning environments.
Outcome 2
Promote growth in economic productivity and social wellbeing through access to
quality higher education, international education, and international quality research,
skills and training.
Former Outcome 1
Improved access to quality services that support early childhood learning and care for
children through a national quality framework, agreed national standards, investment
in infrastructure, and support for parents, carers, services and the workforce.
Note: The outcome structure of the Department of Education and Training has changed since the Portfolio
Additional Estimates Statements 2014–15. These changes are explained further on page 18–19.
4
Portfolio Overview
Figure 1: Education and Training Portfolio Structure and Outcomes (continued)
Australian Curriculum, Assessment and
Reporting Authority
Australian Institute of Aboriginal and
Torres Strait Islander Studies
Robert Randall—Chief Executive Officer
Russell Taylor—Principal (Chief Executive
Officer)
Outcome: Improved quality and
consistency of school education in Australia
through national curriculum, national
assessment, data collection and
performance reporting system.
Outcome: Further understanding of
Australian Indigenous cultures, past and
present through undertaking and
publishing research, and providing access
to print and audiovisual collections.
Australian Institute for Teaching and
School Leadership
Australian Research Council
Professor Aidan Byrne—Chief Executive
Officer
Margery Evans—Chief Executive Officer
Outcome: Enhance the quality of teaching
and leadership through developing
standards, recognising teacher excellence,
providing professional development
opportunities, and supporting the teacher
profession.
Outcome: Growth of knowledge and
innovation through managing research
funding schemes, measuring research
excellence and providing advice.
Australian Skills Quality Authority
Tertiary Education Quality and Standards
Agency
Chris Robinson—Chief Commissioner and
Chief Executive Officer
Professor Nicholas Saunders AO—Acting
Chief Commissioner
Outcome: Contribute to a high quality
vocational education and training sector,
including through streamlined and
nationally consistent regulation of training
providers and courses, and the
communication of advice to the sector on
improvements to the quality of vocational
education and training.
Outcome: Contribute to a high quality
higher education sector through
streamlined and nationally consistent
higher education regulatory arrangements;
registration of higher education providers;
accreditation of higher education courses;
and investigation, quality assurance and
dissemination of higher education
standards and performance.
5
Portfolio overview
Portfolio resources
Table 1 shows the total new resources provided to the portfolio in the 2015–16 budget
year by entity.
Table 1: Portfolio resources 2015–16
Appropriation
Bill No. 1
($m)
Department of Education
and Training
Administered appropriations
Departmental appropriations
Appropriation
Bill No. 2
($m)
1,646
277
44
11
Special
appropriation
($m)
34,384
-
Receipts
Total
($m)
($m)
18
Total:
Australian Curriculum,
Assessment and Reporting
Authority
Administered appropriations
Departmental appropriations
36,380
-
-
-
25
Total:
Australian Institute of
Aboriginal and Torres Strait
Islander Studies
Administered appropriations
Departmental appropriations
15
-
-
-
-
-
-
10
10
10
5
21
3
790
-
-
Total:
Australian Skills Quality
Authority
Administered appropriations
Departmental appropriations
15
15
Total:
Australian Research Council
Administered appropriations
Departmental appropriations
25
25
Total:
Australian Institute for
Teaching and School
Leadership Limited
Administered appropriations
Departmental appropriations
36,073
306
795
23
818
39
4
-
-
Total:
42
42
Tertiary Education Quality
and Standards Agency
Administered appropriations
Departmental appropriations
12
-
-
-
Total:
12
Portfolio total
Less amounts transferred
within portfolio
12
37,302
-
-
20
20
Resources available within portfolio:
37,282
6
-
ENTITY RESOURCES AND
PLANNED PERFORMANCE
Department of Education and Training ....................................................................... 9
Australian Curriculum, Assessment and Reporting Authority .............................. 89
Australian Institute of Aboriginal and Torres Strait Islander Studies ................. 111
Australian Institute for Teaching and School Leadership .................................... 133
Australian Research Council ................................................................................... 149
Australian Skills Quality Authority .......................................................................... 179
Tertiary Education Quality and Standards Agency ............................................... 201
7
8
Department of Education and
Training
Entity resources and planned
performance
9
DEPARTMENT OF EDUCATION AND TRAINING
Section 1: Entity overview and resources ................................................................ 11
1.1
Strategic direction statement .......................................................................... 11
1.2
Entity resource statement ............................................................................... 14
1.3
Budget measures ............................................................................................ 16
Section 2: Outcomes and planned performance ..................................................... 18
2.1
Outcomes and performance information ........................................................ 18
Section 3: Explanatory tables and budgeted financial statements ....................... 69
3.1
Explanatory tables .......................................................................................... 69
3.2
Budgeted financial statements........................................................................ 73
10
Department of Education and Training Budget Statements
DEPARTMENT OF EDUCATION AND TRAINING
Section 1: Entity overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
The Department of Education and Training is the Australian Government’s lead
agency responsible for national policies and programmes that help Australians access
education, regardless of their age or stage of life. These range from quality preschool,
school and international education, higher education, academic research and skills and
training.
The department works to provide opportunity through learning for all Australians.
This recognises that education is fundamental to individual and national prosperity,
particularly for children, students and communities vulnerable to poor outcomes.
Within the department, Indigenous business is everyone’s business, and the
department strives to improve the educational outcomes for Aboriginal and Torres
Strait Islander peoples.
The department collaborates closely with other Australian Government agencies, state
and territory governments, education stakeholders and the wider public to achieve its
outcomes.
The department’s responsibilities changed as a result of the Administrative
Arrangements Order that took effect on 23 December 2014. In addition to a variation of
functions, the department’s name also changed to the Department of Education and
Training. The responsibility for:

skills and training transferred from the former Department of Industry to the
department

child care and early childhood development transferred from the department to
the Department of Social Services

preschool education and the Australian Early Development Census remained with
the department.
The department’s outcome structure was updated to reflect these changes and realign
the department’s functions. A diagram of the department’s outcome structure changes
is on page 18–19.
The department is committed to the development of world-class education
opportunities comprising:

a school education system, including preschool, that is based on teacher and
educator quality, school autonomy, engaging parents in education and a strong
11
Department of Education and Training Budget Statements
and robust Australian curriculum, which can have a significant impact on student
outcomes

a higher education system that supports economic and social growth through
participation and engagement in quality teaching, learning and research

an efficient and effective skills and training system that is industry led and
outcome-driven.
Some of the major measures impacting the portfolio as a result of the 2015–16 Budget
include:

National Collaborative Research Infrastructure Strategy (NCRIS)—building on
the Government’s 2014–15 Budget decision to commit $150 million for NCRIS
operation in 2015–16, an additional $150 million will be provided in 2016–17 to
continue the operations of major national research infrastructure to 30 June 2017.
This will ensure ongoing support for research until the review of Commonwealth
funded research infrastructure is completed in mid-2015 and its recommendations
are considered by Government.

Securing the future of the national Indigenous collection—additional funding of
$5.0 million in 2015–16 to address the highest priority needs in the management of
the AIATSIS collection of Indigenous cultural and heritage material. The funding
will provide urgent remediation and preservation work on parts of the unique
AIATSIS collection of audio-visual material, manuscripts, and publications.

Extension of the Indigenous Boarding Initiative—providing $5.4 million over
two years (2015–16 and 2016–17) will allow a further two calendar years (2015 and
2016) of recurrent funding to assist non-government boarding schools with large
numbers of Indigenous students from remote and very remote areas.

Universal Access Extension—providing $840 million, adjusted for the Consumer
Price Index, to support preschool programmes for a further two calendar years.
The objective of the National Partnership is for at least 95 per cent of children to
have access to a quality early childhood education programme in the year before
full-time school.

Strengthening the Higher Education Loan Programme (HELP) system—The
Australian Government has announced changes to the VET FEE-HELP student
loan scheme to address practices of concern while ensuring that students can
continue to access this important programme. The changes will strengthen the
administration of the scheme and improve the quality of outcomes for students
including giving students more information and addressing undesirable
marketing and recruitment practices. In addition, the Australian Government will
require Australians who have a HELP debt and are living overseas to repay these
debts, on the same income contingent basis as would apply if they were residing in
Australia. These changes to debt recovery arrangements will provide estimated
savings to the Budget of $25.4 million from 2015–16 to 2018–19 in fiscal balance
terms.
12
Department of Education and Training Budget Statements

Lifting the quality of initial teacher education—providing $16.9 million from
2015–16 to 2018–19 to enable the Australian Government to raise student learning
outcomes through lifting the quality of initial teacher education in Australia.
Funding will be directed to support activities to improve initial teacher education
courses in Australia as recommended by the Teacher Education Ministerial
Advisory Group (TEMAG) in its 2014 report, Action Now: Classroom Ready
Teachers.
13
Department of Education and Training Budget Statements
1.2
ENTITY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources will be applied by outcome and by administered and departmental
classification.
Table 1.1: Department of Education and Training resource statement—Budget
estimates for 2015–16 as at Budget May 2015
Actual Estimate of prior
Available
year amounts
Appropriation
available in
2014–15
2015–16
$'000
$'000
Ordinary annual services (a)
Departmental appropriation
Prior year appropriations (b)
Departmental appropriation (c)
s74 Retained revenue receipts (d)
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
$'000
296,045
24,390
-
277,383
17,970
277,383
17,970
Total
Administered expenses
Outcome 1
Outcome 2
Total
320,435
-
295,353
295,353
489,419
758,380
1,247,799
-
100,167
1,545,593
1,645,760
100,167
1,545,593
1,645,760
Total ordinary annual services [A]
1,568,234
-
1,941,113
1,941,113
99,621
-
43,645
43,645
99,621
-
43,645
43,645
4,141
3,489
-
2,574
8,465
2,574
8,465
7,630
-
11,039
11,039
107,251
-
54,684
54,684
1,675,485
-
1,995,797
1,995,797
(e)
Other services
Administered expenses
Specific payments to States, ACT, NT
and local government
Outcome 1
Total
Departmental non-operating
Prior year appropriations (b)
Equity injections
Total
Total other services [B]
Total available annual appropriations
[A+B]
14
Department of Education and Training Budget Statements
Table 1.1: Department of Education and Training resource statement—Budget
estimates for 2015–16 as at Budget May 2015 (continued)
Actual Estimate of prior
Available
year amounts
Appropriation
available in
2014–15
2015–16
$'000
$'000
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
$'000
Special appropriations
Special appropriations limited by
criteria/entitlement
A New Tax System (Family Assistance)
Act 1999
Australian Education Act 2013
Higher Education Support Act 2013
Trade Support Loan Act 2014
Total special appropriations [C]
Total appropriations excluding special
accounts
Special accounts
Opening balance (f)
Non-appropriation receipts to Special
Accounts
Total special accounts [D]
Total resourcing [A+B+C+D]
Less appropriations drawn from annual or
special appropriations above and credited
to special accounts
and/or payments to corporate entities
through annual appropriations
Total net resourcing for Department of
Education
3,360,968
-
-
-
14,621,373
16,770,769
60,974
-
15,700,346
18,152,359
531,617
15,700,346
18,152,359
531,617
34,814,084
-
34,384,322
34,384,322
36,489,569
-
36,380,119
36,380,119
86,891
-
19,634
19,634
228,059
-
46,716
46,716
314,950
-
66,350
66,350
36,804,519
-
36,446,469
36,446,469
-
-
-
-
28,673
-
20,300
20,300
36,775,846
-
36,426,169
36,426,169
(a)
(b)
(c)
Appropriation Bill (No. 1) 2015–16.
Estimated adjusted balance carried forward from previous year.
Includes an amount of $22.177m in 2015–16 for the Departmental Capital Budget (refer to Table 3.2.5
for further details). For accounting purposes this amount has been designated as 'contributions by
owners'.
(d) Estimated Retained revenue receipts under section 74 of the PGPA Act.
(e) Appropriation Bill (No. 2) 2015–16.
(f)
Estimated opening balance for special accounts (less ‘Special Public Money’ held in accounts like
Other Trust Monies accounts (OTM), Services for other Government and Non-agency Bodies accounts
(SOG), or Services for Other Entities and Trust Moneys accounts (SOETM)). For further information on
special accounts see Table 3.1.2.
Note: All figures are GST exclusive.
Third party payments from and on behalf of other entities
2014–15
$'000
2015–16
$'000
Payments made on behalf of other entities
Department of Social Services
590,615
-
Payments made by other entities on behalf of Education and Training
Department of Human Services
Department of Industry
836,916
16,517
-
Payments made to corporate entities within the Portfolio
Australian Institute for Teaching and School
Annual Appropriation Bill 1
Leadership
14,420
7,500
Australian Curriculum, Assessment and
Reporting Authority
14,253
12,800
Annual Appropriation Bill 1
15
Department of Education and Training Budget Statements
1.3
BUDGET MEASURES
Budget measures in Part 1 relating to the Department of Education and Training are
detailed in Budget Paper No. 2 and are summarised below.
Table 1.2: Entity 2015–16 Budget measures
Part 1: Measures announced since the 2014–15 Mid-Year Economic and Fiscal
Outlook (MYEFO)
Programme
Revenue measures
Higher Education Loan Programme –
recovery of repayments from overseas
debtors
Administered revenue
Departmental revenues
2014–15
$'000
2015–16
$'000
2016–17
$'000
2017–18
$'000
2018–19
$'000
2.4
-
2,440
-
6,307
-
8,598
-
11,079
-
Total
Total revenue measures
Administered
Departmental
-
2,440
6,307
8,598
11,079
-
2,440
-
6,307
-
8,598
-
11,079
-
Total
Expense measures
Parental Engagement Campaign
Administered expenses
Departmental expenses
-
2,440
6,307
8,598
11,079
(3,700)
-
3,700
-
-
-
-
(3,700)
3,700
-
-
-
Total
Smaller Government – Education and
Training Portfolio
Administered expenses
Departmental expenses
Total
Remote Indigenous Students Attending
Non-Government Boarding Schools –
continuation
Administered expenses
Departmental expenses
Total
Australian Early Development Census –
saving
Administered expenses
Departmental expenses
Total
Improving the Quality of Teachers and
Teacher Education Courses
Administered expenses
Departmental expenses
Total
Families Package – National Partnership
Agreement on Universal Access to Early
Childhood Education – extension
Administered expenses
Departmental expenses
1.3,2.3
1.3,1.6,2.3
2.6,2.7,2.8
All
(750)
-
(30,936)
(925)
(22,354)
(1,613)
(28,135)
(2,218)
(41,267)
(2,825)
(750)
(31,861)
(23,967)
(30,353)
(44,092)
-
3,479
-
1,931
-
-
-
-
3,479
1,931
-
-
-
-
-
-
-
-
-
-
-
-
-
4,800
-
4,300
-
4,100
-
3,700
-
-
4,800
4,300
4,100
3,700
-
-
1,500
-
1,500
-
-
-
-
1,500
1,500
-
1.2
Former 1.1,
1.3
1.3
1.3
Total
16
Department of Education and Training Budget Statements
Part 1: Measures announced since the 2014–15 Mid-Year Economic and Fiscal
Outlook (MYEFO) (continued)
Higher Education Participation
Programme – adjustment
Administered expenses
Departmental expenses
Total
VET FEE-HELP – enhanced compliance
regime
Administered expenses
Departmental expenses
Total
Higher Education Loan Programme –
recovery of repayments from overseas
debtors
Administered expenses
Departmental expenses
Total
Sustainable Research Excellence –
adjustment
Administered expenses
Departmental expenses
Programme
2.3
2014–15
$'000
Total
National Collaborative Research
Infrastructure Strategy – continuation
Administered expenses
Departmental expenses
Total
Adult Migrant English Programme –
expansion
Administered expenses
Departmental expenses
2017–18
$'000
2018–19
$'000
-
(5,000)
-
-
-
-
-
(5,000)
-
-
-
-
4,570
3,901
3,054
3,083
-
4,570
3,901
3,054
3,083
-
155
155
155
(19)
5
-
155
155
155
(14)
-
-
(150,000)
-
(37,500)
-
(75,000)
-
-
-
(150,000)
(37,500)
(75,000)
-
-
-
-
-
-
-
-
-
-
-
-
150,000
-
-
-
-
-
150,000
-
-
-
14,454
-
-
-
-
-
14,454
-
-
-
2.4
2.5
2.6
2.6
2.8
Total
Total expense measures
Administered
Departmental
Total
Capital measures
VET FEE-HELP – enhanced compliance
regime
Administered capital
Departmental capital
2016–17
$'000
2.4
Total
Australian Consensus – establishment
Administered expenses
Departmental expenses
2015–16
$'000
(4,450)
-
(9,503)
3,800
(14,623)
2,443
(60,035)
991
(112,586)
263
(4,450)
(5,703)
(12,180)
(59,044)
(112,323)
2.4
-
3,600
-
-
-
Total
Total capital measures
Administered
Departmental
-
3,600
-
-
-
-
3,600
-
-
-
Total
-
3,600
-
-
-
Prepared on a Government Finance Statistics (fiscal) basis.
17
Department of Education and Training Budget Statements
Section 2: Outcomes and planned performance
2.1
OUTCOMES AND PERFORMANCE INFORMATION
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programmes are the
primary vehicle by which government entities achieve the intended results of their
outcome statements. Entities are required to identify the programmes which contribute
to government outcomes over the Budget and forward years.
Each outcome is described below together with its related programmes, specifying the
performance indicators and targets used to assess and monitor the performance of the
Department of Education and Training in achieving government outcomes.
Figure 1: Department of Education and Training outcome structure
changes
18
Department of Education and Training Budget Statements
Figure 1: Department of Education and Training outcome structure changes
(continued)
19
20
Department of Education and Training Budget Statements
Outcome 1: Improved early learning, schooling, student educational outcomes
and transitions to and from school through access to quality support, parent
engagement, quality teaching and learning environments.
Outcome 1 Strategy
In partnership with states and territories and the non-government sector, the
Australian Government is working to improve outcomes in Australia’s schools
through the Students First package of reforms, by focusing on teacher quality, school
autonomy, engaging parents in education and strengthening the Australian
Curriculum. At the same time, the Government is supporting quality early childhood
education and universal access to increase children’s enrolment and attendance in
preschool programmes in order to support child development in the early years and
prepare children for formal schooling.
The Government acknowledges that states, territories and school systems are
responsible for the operation and management of schools, including determining the
distribution of funding. Under Outcome 1, the majority of the Commonwealth’s
investment in schools is made through payments to states and territories for
government and non-government schools and systems. This approach reflects the
important role schools, parents and communities play in translating national policy
settings into action at the local level, and is supported by ensuring quality data is
available to track progress and inform policy development.
The Government’s approach is more than a focus on funding—it is about improving
schooling through initiatives that can have a significant impact on student outcomes
and address disadvantage, for example for students from low socio-economic
backgrounds, students with disability, Aboriginal and Torres Strait Islander students,
and students in regional and remote areas.
Evidence tells us that teachers have the greatest in-school influence on student
engagement and achievement. The Teacher Education Ministerial Advisory Group’s
report, Action Now: Classroom Ready Teachers, was released in February 2015. The
Government is committed to implementing the report’s recommendations to improve
teacher education in Australia, and believes they will make a real impact on the quality
of teaching in our schools. The Government will work closely with universities, state
and territory governments, non-government schools, the Australian Institute for
Teaching and School Leadership and other key stakeholders to deliver this important
work and build on efforts to date to help Australia’s teachers be their best.
High performing school systems give schools the flexibility to make their own
decisions about school management. In addition to advancing a school autonomy
agenda through the Independent Public Schools initiative, the Government is
committed to ensuring that parent engagement is strengthened and valued. This
includes providing opportunities, research and information to help parents engage in
and support their child’s learning.
21
Department of Education and Training Budget Statements
Getting curriculum settings right is essential to improving the quality of education for
all school students which is why the Government instituted a review of the Australian
Curriculum in 2014 to examine its robustness, independence and balance, and to
evaluate the process of its development. The reviewers’ final report and the
Government’s initial response were both released in October 2014. Following
consideration by the Education Council in March 2015, the Australian Curriculum,
Assessment and Reporting Authority (ACARA) has commenced work to address the
key themes of overcrowding and rebalancing of content, accessibility and parent
engagement. At the same time, the Government is restoring the focus on science,
technology, engineering and mathematics (STEM) subjects in primary and secondary
schools, and prioritising the continued development of the languages curriculum. This
includes $12 million announced in October 2014 for STEM education initiatives under
the Government’s Industry, Innovation and Competitiveness agenda.
The Government has provided national leadership in the development and
implementation of the framework Preparing Secondary Students for Work: A
Framework for Vocational Learning and VET Delivered to Secondary Students, which
was endorsed by the Education Council in December 2014. This framework provides a
platform for the change required to lift the quality of vocational learning and VET
delivered to secondary students.
The Government is also committed to ensuring that parents and school communities
have access to timely and accurate information on student outcomes. The Government
is working with states and territories, ACARA and Education Services Australia (ESA)
to move the National Assessment Programme, including the National Assessment
Programme—Literacy and Numeracy (NAPLAN), online. Online delivery will
transform national testing, giving teachers and parents faster and more accurate
information regarding student performance by tailoring individual tests to match each
student’s ability. As a result, NAPLAN online will provide even greater opportunities
for teachers to help students develop the crucial skills of literacy and numeracy.
22
Department of Education and Training Budget Statements
Outcome expense statement
Table 2.1 provides an overview of the total expenses for Outcome 1 by programme.
Table 2.1.1: Budgeted expenses for Outcome 1
Outcome 1: Improved early learning, schooling, student educational outcomes and
transitions to and from school through access to quality support, parent engagement,
quality teaching and learning environments.
Programme 1.1: Government Schools National Support
Administered expenses
Special appropriations
Total for Programme 1.1
2014–15
Estimated
actual
expenses
$'000
2015–16
Estimated
expenses
$'000
5,247,309
5,746,174
5,247,309
5,746,174
42,605
9,374,064
42,640
9,954,172
9,416,669
9,996,812
85,314
99,633
85,314
99,633
45,647
1,005
45,647
1,005
2,882
11,369
-
14,251
-
67,505
240
534
240
67,745
774
155,701
99,621
14,621,373
240
100,167
43,645
15,700,346
240
85,817
82,145
Programme 1.2: Non-Government Schools National Support
Administered expenses
Other services (Appropriation Bill No. 2)
Special appropriations
Total for Programme 1.2
Programme 1.3: Early Learning and Schools Support
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
(a)
Total for Programme 1.3
Programme 1.4: Trade Training Centres in Schools
Administered expenses
Other services (Appropriation Bill No. 2)
Total for Programme 1.4
Programme 1.5: More Support for Students with Disabilities
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Other services (Appropriation Bill No. 2)
Total for Programme 1.5
Programme 1.6: Youth Support
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Special Accounts
Total for Programme 1.6
Outcome 1 Totals by appropriation type
Administered Expenses
Ordinary annual services (Appropriation Bill No. 1)
Other services (Appropriation Bill No. 2)
Special appropriations
Special Accounts
Departmental expenses
Departmental appropriation (b)
Expenses not requiring appropriation in the Budget year
(c)
Total expenses for Outcome 1
Average Staffing Level (number)
(a)
9,567
10,110
14,972,319
15,936,653
2014–15
501
2015–16
477
2014–15 estimated expenses for this programme do not include the Former Outcome 1 programmes
retained by the department since the Machinery of Government changes announced on 23 December
2014. These programmes are reported under the Former Outcome 1 programmes 1.1 and 1.4.
(b) Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and
'Revenue from independent sources (s 74)'.
(c) Expenses not requiring appropriation in the Budget year are made up of Depreciation Expenses,
Amortisation Expenses, Makegood Expenses and Audit Fees.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of
the Budget year as government priorities change.
23
Department of Education and Training Budget Statements
Programme 1.1 Government Schools National Support
Programme objective
The Government provides supplementary funding to states and territories to support
the operating costs of government primary and secondary schools.
Administered items include:

Since 1 January 2014, funding for government schools has been calculated
according to a Schooling Resource Standard, comprising a base amount for every
primary and secondary school student plus loadings to target disadvantage. The
Government’s funding for government schools is based on arrangements
contained within the Australian Education Act 2013.

The Government provides funding for the Independent Public Schools initiative to
increase the autonomy of government schools through project agreements with
states and territories. The initiative makes available $70 million to support
government schools across Australia, including through greater engagement of
parents and local communities in school decision-making and the provision of
professional development for principals, school leaders and school communities.
The initiative’s objectives are:
-
a focus on local governance
increased accountability to the local community
the use of streamlined or one-line budgets
local management of school facilities
increased delegation over staffing for school principals.
Linked to: Specific Purpose Payments and National Partnerships—linked to the
Department of the Treasury, 1.9 National Partnership Payments to the States.
24
Department of Education and Training Budget Statements
Programme expenses
Programme expenses 1.1 Government Schools National Support
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
Special Appropriations:
Australian Education Act 2013
5,247,309
5,746,174
6,358,918
6,851,941
7,140,104
5,247,309
5,746,174
6,358,918
6,851,941
Total Programme expenses
7,140,104
Programme 1.1 deliverables
Deliverables
2014–15
Revised
Budget
2015–16
Budget
2016–17
2017–18
2018–19
2,443,000
2,480,000
2,521,000
2016–17
2017–18
2018–19
Government schools specific purpose payment
Funded full-time equivalent
student enrolment projections 1
2,417,000
2,416,000
Programme 1.1 key performance indicators
Key performance indicators
2014–15
Revised
Budget
2015–16
Budget
Enrolment projections – government schools 2
All full-time enrolments in Australian schools:
•
Primary students
•
Secondary students
Number of Indigenous students
at school 3
1
2
3
1,502,000
1,468,000
1,490,000
1,520,000
1,543,000
892,000
949,000
951,000
955,000
969,000
160,000
167,000
172,000
177,000
183,000
Funded full-time equivalent student enrolment projections do not include unfunded
students such as full fee paying overseas students.
All full-time student enrolments in Australian schools include unfunded students such as
full fee paying overseas students. The aggregate of all primary and secondary student
enrolments will not match funded enrolments.
Indigenous student enrolments are a subset of primary and secondary student enrolments.
25
Department of Education and Training Budget Statements
Programme 1.2 Non-Government Schools National Support
Programme objective
The Government provides funding to support the operating costs of non-government
schools and systems, and supplements funding raised by schools from other sources.
Administered items include:

Since 1 January 2014, funding for non-government schools has been calculated
according to a Schooling Resource Standard comprising a base amount for every
primary and secondary school student plus loadings to target disadvantage. The
base per-student amount is discounted by the capacity of the school community to
contribute towards the operating costs of the school. The Government’s funding
for non-government schools is based on arrangements contained within the
Australian Education Act 2013.

Provision of $165 million over four years from 2014 to state and territory Catholic
Education Commissions and Associations of Independent Schools, as nongovernment representative bodies approved under the Australian Education Act
2013, to help non-government schools implement national reforms.

Capital funding is provided under the Capital Grants Programme to assist nongovernment school communities to improve school capital infrastructure,
particularly for the most educationally-disadvantaged students. Capital grants are
supplementary to funding provided by the school communities and nongovernment school authorities who have the primary responsibility for providing,
upgrading and maintaining their school facilities.

The 2014 Indigenous Boarding Schools (Additional Funding for Non-government
Schools with Substantial Numbers of Remote or Very Remote Indigenous
Boarding Students) initiative has been extended for two more years. This initiative
will provide support in 2015 and 2016 for non-government schools with more than
50 Indigenous boarding students from remote or very remote Australia, or where
50 per cent or more of their boarding students are Indigenous and from remote or
very remote Australia. The extra support will assist non-government boarding
schools to deliver improved services to Indigenous students, boost school
attendance and engagement, and help ensure Indigenous students access the same
educational opportunities as their non-Indigenous peers.
Linked to: Specific Purpose Payments and National Partnerships—linked to the
Department of the Treasury, 1.9 National Partnership Payments to the States.
26
Department of Education and Training Budget Statements
Programme expenses
Programme expenses 1.2 Non-Government Schools National Support
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
Annual administered expenses:
Short Term Emergency Assistance
Non-Government Representative Bodies
Special Appropriations:
Australian Education Act 2013
1,438
41,167
1,473
41,167
1,521
41,167
1,545
-
1,570
-
9,374,064
9,954,172
10,610,260
11,177,115
11,618,421
Total Programme expenses
9,416,669
9,996,812
10,652,948
11,178,660
11,619,991
2014–15
Revised
Budget
2015–16
Budget
2016–17
2017–18
2018–19
1,303,000
1,319,000
1,339,000
1,360,000
225
225
225
225
2015–16
Budget
2016–17
2017–18
2018–19
Programme 1.2 deliverables
Deliverables
Recurrent grants – non-government
Funded full-time equivalent
student enrolment projections 4
1,297,000
Capital grants – non-government 5
Number of schools assisted with
capital support
245
Programme 1.2 key performance indicators
Key performance indicators
2014–15
Revised
Budget
Enrolment projections – non-government 6
All full-time student enrolments in Australian schools:
•
Primary students
•
Secondary students
Indigenous students
4
5
6
7
7
674,000
646,000
652,000
662,000
671,000
619,000
664,000
671,000
678,000
687,000
30,000
32,000
33,000
35,000
36,000
Funded full-time equivalent student enrolment projections do not include unfunded
students such as full fee paying overseas students.
The Capital Grants Programme operates on calendar years. The number of schools assisted
will vary from year to year depending on the size of projects supported.
All full-time student enrolments in Australian schools include unfunded students such as
full fee paying overseas students. The aggregate of all primary and secondary student
enrolments will not match funded enrolments.
Indigenous student enrolments are a subset of primary and secondary student enrolments.
27
Department of Education and Training Budget Statements
Programme 1.3 Early Learning and Schools Support
Programme objective
The Government, in its national leadership role, funds other initiatives to improve
outcomes for all Australian students and ensure access to high quality early learning. 8
A number of these initiatives support the Students First package of reforms.
Administered items include:

The Government has committed to restoring the focus on STEM subjects in
primary and secondary schools in line with the STEM strategy proposed by the
Chief Scientist. In addition to maintaining funding for Primary Connections and
Science by Doing, funding of $12 million has been provided for a range of STEM
education projects: Mathematics by Inquiry, Coding across the Curriculum,
Pathways in Technology Early College High School (P-TECH), and Summer
Schools for STEM.

Quality Outcomes—provides funding for strategic projects that aim to improve
student learning outcomes in schools. This includes the Parliament and Civics
Education Rebate (PACER) programme, which provides financial support to assist
students in years 4 to 12 visiting national institutions in Canberra, including
Parliament House, for civics and citizenship education.

The National School Chaplaincy Programme (NSCP) supports the emotional
wellbeing of students through the provision of pastoral care services in schools.
The NSCP facilitates this by supporting the engagement of school chaplains in
approximately 3000 schools nationally. States and territories are responsible for
delivering all aspects of the programme, including selecting schools to participate.
Participation by schools and students in the NSCP is voluntary.

The Flexible Literacy Learning for Remote Primary Schools programme funds
approaches to literacy teaching through explicit and direct instruction in rural and
remote primary schools.

The Australian Curriculum, Assessment and Reporting Authority will be provided
with $1.8 million over two years to develop languages curricula for Auslan,
Classical Languages, Hindi and Turkish. This initiative will support the
Government's election commitment to improve the take-up of languages in
Australian schools.

The Teach for Australia programme was established to introduce employmentbased pathways into the profession and attract high-calibre graduates who may
otherwise not have considered a career in teaching. On completion of their two
8
Early learning programmes were reported previously under Programme 1.1: Support for the
Child Care System and Programme 1.4: Early Childhood Education. For changes to the
outcome and programme structure since the Education and Training Portfolio Additional
Estimates Statements 2014–15, please see page 19–20.
28
Department of Education and Training Budget Statements
year placement, participants are awarded a postgraduate teaching qualification.
The Government is committed to ongoing support for Teach for Australia.

The Government is working closely with ACARA, ESA and states and territories
to deliver the National Assessment Programme, including NAPLAN online. The
National Assessment Reform initiative provides funding for the development and
ongoing maintenance of the platform to deliver these assessments online. The
platform will first be used to conduct the National Assessment Programme—
Civics and Citizenship sample assessment in 2016, with NAPLAN assessments
being available for use by schools from 2017 onwards. Education Ministers have
committed to all schools undertaking NAPLAN online by 2019.

The Government provides funding to states and territories through the National
Partnership Agreement on Universal Access to Early Childhood Education. This
initiative supports states and territories to provide quality early childhood
programmes for up to 600 hours a year for all children in the year before full-time
schooling. These programmes meet the National Quality Framework, which
requires them to be delivered by a degree-qualified early childhood teacher. The
National Partnership Agreements have a particular focus on participation by
vulnerable and disadvantaged children. The National Partnership has been
extended to provide funding for preschool education for an additional two years
to 2017.

The Early Learning Languages Australia (ELLA) trial is enabling children at
41 services delivering early childhood education programmes to participate in a
one year trial of online language learning in 2015. The trial’s objective is to
determine the effectiveness of languages learning by providing preschool children
with early exposure to a language other than English through online learning
programmes in a select range of languages.

The Government invests in the Australian Early Development Census (AEDC) to
improve early childhood development outcomes. The AEDC is a population-based
measure of how children have developed by the time they start their first year of
full-time schooling, across five areas of early childhood development. It provides
parents, schools, local communities, governments and policy makers with the
information they need to plan and evaluate their efforts. The AEDC is conducted
every three years. The third cycle of collection commenced on 4 May 2015.

One of the ways the Government is providing support to students with disability
is through the Helping Children with Autism package. Positive Partnerships, the
education element of this package, provides support for parents and carers of
children with autism, including through workshops and access to online resources.
It also provides professional development for school leaders and teachers working
with students with autism spectrum disorder, with the aim of building
partnerships between schools and families to improve educational outcomes.
Linked to: Specific Purpose Payments and National Partnerships—linked to the
Department of the Treasury, 1.9 National Partnership Payments to the States.
29
Department of Education and Training Budget Statements
Programme expenses
Programme expenses 1.3 Early Learning and Schools Support
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
3,899
50,356
5,637
3,205
5,700
7,300
1,367
39,996
5,716
5,250
7,450
1,353
36,284
5,749
2,000
3,214
1,353
34,231
5,841
1,000
885
1,353
33,583
5,935
-
6,000
1,017
6,000
9,840
6,000
10,220
-
2,200
1,000
3,850
3,950
3,200
-
1,200
-
600
10,800
1,500
3,106
1,500
11,972
1,500
11,972
-
-
2,464
-
-
-
-
4,800
4,300
4,100
3,700
85,314
99,633
Total Programme expenses
(a) 2014–15 estimated actuals reported under Former Outcome 1.
77,676
64,082
58,743
Annual administered expenses:
Grants and Awards
Quality Outcomes
Helping Children with Autism
Broadband Enabled Education
Maths and Science Participation
Teach for Australia
Flexible Literacy Learning for Remote
Primary Schools
National Assessment Reform
Science, Technology, Engineering and
Mathematics (STEM)
Improving the Teaching of Foreign
Languages
Australian Early Development Census (a)
Universal Access (a)
Early Learning Languages Australia
(ELLA) (a)
Australian Government Response to
TEMAG
2014–15
Estimated
actual
$'000
2015–16
Budget
30
Department of Education and Training Budget Statements
Programme 1.3 deliverables
Deliverables
2014–15
Revised
Budget
2015–16
Budget
2016–17
2017–18
2018–19
2,202
2,268
2,336
2,406
Parliament and Civics Education Rebate
Number of schools visiting
Canberra under PACER
2,155
Helping Children with Autism package 9
Number of teachers and other
school staff attending
professional development
courses
450
n/a
n/a
n/a
n/a
Number of parents and carers
attending workshops and
information sessions
1,800
n/a
n/a
n/a
n/a
2,900
2,900
2,900
2,900
programme
commenced
programme
evaluated
n/a
n/a
n/a
n/a 11
60
60
n/a
n/a
National School Chaplaincy Programme
Number of schools receiving
support for chaplaincy services
3,000
Early Learning Languages Australia trial
Online foreign language learning
in preschool programmes trialled
in 2015
Teach for Australia programme
Number of associates
commencing in schools 10
9
10
11
Deliverables up to and including 2014–15 for this programme reflect those in the contract
with the current service provider, which ceases in 2015. A tender process will be undertaken
in mid-2015 for a new service provider to deliver the programme for the next three years,
and deliverables will be negotiated with the new service provider.
The Teach for Australia programme operates on calendar years. The number of associates
placed in schools could vary from year to year. The minimum number of associates for each
year is 60, based on core funding.
At the time of the 2014–15 PBS, the new contract had not been signed and therefore KPIs
could not be included. The contract was signed in June 2014 and 60 associates were funded
in the 2014–15 budget year.
31
Department of Education and Training Budget Statements
Programme 1.3 key performance indicators
Key performance indicators
2014–15
Revised
Budget
2015–16
Budget
2016–17
2017–18
2018–19
Universal Access to Early Childhood Education National Partnership
Percentage of all children
enrolled in preschool
95%
95%
95%
95%
n/a
Percentage of Indigenous
children enrolled in preschool
95%
95%
95%
95%
n/a
Percentage of Indigenous
children enrolled in preschool in
remote areas
95%
95%
95%
95%
n/a
Percentage of children enrolled
in an early childhood education
programme that is available for
at least 600 hours a year 12
95%
95%
95%
95%
n/a
12
The KPI has been updated to reflect the performance milestones in the National Partnership
Agreement on Universal Access to Early Childhood Education – 2015.
32
Department of Education and Training Budget Statements
Programme 1.4 Trade Training Centres in Schools
Programme objective
The Trade Training Centres in Schools Programme provides funding for Trade Skills
Centres.
As previously announced, funding for the programme will conclude on 30 June 2016.
Linked to: Specific Purpose Payments and National Partnerships—linked to the
Department of the Treasury, 1.9 National Partnership Payments to the States.
Programme expenses
The final funding round was announced in January 2014 following the Government’s
decision, at the 2013–14 Mid-Year Economic and Fiscal Outlook, that funding would
cease following round five (phase one), under which new centres have been retitled
Trades Skills Centres.
Programme expenses 1.4 Trade Training Centres in Schools
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
Annual administered expenses:
Trade Skills Centres (Non-Government)
45,647
1,005
-
-
-
Total Programme expenses
45,647
1,005
-
-
-
Programme 1.4 deliverables
Deliverables
2014–15
Revised
Budget
2015–16
Budget
2016–17
2017–18
2018–19
n/a
n/a
n/a
Trade Training Centres in Schools Programme
Total announced projects
(cumulative)
511
511
33
Department of Education and Training Budget Statements
Programme 1.5 More Support for Students with Disabilities
Programme objective
The More Support for Students with Disabilities was a short-term initiative (2012–
2014) to strengthen the capacity of schools and teachers in providing additional
support for students with disabilities.
Activities were delivered over the duration of the initiative in government and nongovernment schools across the country. These included: additional training for
teachers on obligations under the Disability Standards for Education 2005, the
provision of additional allied health support in schools, the development of support
centres to provide expert guidance to schools, and assistance with implementation of
the Nationally Consistent Collection of Data on School Students with Disability.
Linked to: Specific Purpose Payments and National Partnerships—linked to the
Department of the Treasury, 1.9 National Partnership Payments to the States.
Programme expenses
Funding under the More Support for Students with Disabilities initiative expires at the
end of the 2014–15 financial year.
Programme expenses 1.5 More Support for Students with Disabilities
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
Annual administered expenses:
Students with Disabilities (COPE)
Students with Disabilities
(Non-Government)
2,882
-
-
-
-
11,369
-
-
-
-
Total Programme expenses
14,251
-
-
-
-
34
Department of Education and Training Budget Statements
Programme 1.6 Youth Support
Programme objective
The Youth Support Programme provides funding for research into factors affecting
young people.
Administered items include:

The National Youth Affairs Research Scheme which is an Australian and state and
territory government research programme that provides nationally based research
to inform policies and programmes for young people.
Linked to: Specific Purpose Payments and National Partnerships—linked to the
Department of the Treasury, 1.9 National Partnership Payments to the States.
Programme expenses
Programme expenses 1.6 Youth Support
2014–15
Estimated
actual
$'000
2015–16
Budget
Annual administered expenses:
Youth Attainment and Transitions
Youth Engagement
Special Account Expenses:
National Youth Affairs Research
Scheme
Total Programme expenses
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
64,428
3,077
534
535
-
-
240
240
240
240
240
67,745
774
775
240
240
Programme 1.6 deliverables
Deliverables
2014–15
Revised
Budget
2015–16
Budget
2016–17
2017–18
2018–19
No
targets
90% final
target
n/a 13
n/a
n/a
Youth Attainment and Transitions
Progress towards 2015 COAG
target of 90 per cent Year 12
equivalent attainment
13
The COAG target has no ongoing deliverables beyond 2015–16.
35
36
Department of Education and Training Budget Statements
Outcome 2: Promote growth in economic productivity and social wellbeing
through access to quality higher education, international education, and
international quality research, skills and training.
Outcome 2 Strategy
Research, higher education and vocational training are integral to Australia’s
prosperity. Through Outcome 2, the Australian Government is supporting economic
growth and social wellbeing through participation and engagement in quality learning
and teaching, training and research.
In partnership with vocational education and training (VET) providers, universities
and other higher education institutions and industry, the Government is working to
promote a world class tertiary education system which is innovative, competitive and
globally connected.
Ensuring a highly skilled workforce is a key priority for the Government and its efforts
are focused on giving all students opportunities for access, participation and success.
The Government is also committed to cutting red tape to allow institutions the
freedom to focus on their core business and play to their strengths in a competitive
environment. The reforms to VET, higher education and research are designed to
achieve these goals.
The Government is also committed to Australia having a world-class research sector,
where researchers demonstrate excellence and innovation, lifting our national
productivity and prosperity and contributing to our nation’s social well-being,
character and understanding.
Over 2015–16, the Government will make significant investment to strengthen
Australia’s VET, higher education and research sectors and to improve Australia’s
position as a knowledge-based nation. The Government will enact this through:

continued pursuit of reforms to the provision of Commonwealth subsidies for
students undertaking higher education to ensure that students have a choice of
course and higher education provider and that these providers can perform at
their best

strengthening the Higher Education Loan Programme (HELP)

establishing a new institute for learning and teaching excellence in universities

continuing funding for the National Collaborative Research Infrastructure Strategy
(NCRIS)

launching a new national strategy for Australia’s international education sector

strengthening and safeguarding the quality and responsiveness of the VET sector.
37
Department of Education and Training Budget Statements
The establishment of a new institute for learning and teaching in universities will
allow the higher education sector itself to lead the promotion of excellence and
creativity in learning and teaching.
Continuation of funding for the NCRIS provides for multi-layered collaboration across
universities, industry and governments, further growing Australia’s excellent research
standing.
A significant investment and commitment to keep working with the Australian
Institute of Aboriginal and Torres Strait Islander Studies to ensure the resilience and
national accessibility of the national Indigenous cultural collection is also a feature of
the 2015–16 Budget.
Australia’s prosperity is prioritised in the launching of an international education
strategy. The strategy is a blueprint for the Government and the international
education community to work together and grow the market in Australia’s third
largest export.
Much needed reforms to VET FEE-HELP strengthen arrangements with training
providers and ensure safeguards for students and employers, solidifying the integrity
of the vocational sector. The Government continues to work closely with VET
stakeholders and industry to improve the quality and responsiveness of delivery.
38
Department of Education and Training Budget Statements
Outcome expense statement
Table 2.1 provides an overview of the total expenses for Outcome 2 by programme.
Table 2.1.2: Budgeted Expenses for Outcome 2
Outcome 2: Promote growth in economic productivity and social
wellbeing through access to quality higher education, international
education, and international quality research, skills and training.
Programme 2.1: Commonwealth Grant Scheme
Administered expenses
Special appropriations
Total for Programme 2.1
Programme 2.2: Higher Education Superannuation Programme
Administered expenses
Special appropriations
Total for Programme 2.2
Programme 2.3: Higher Education Support
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Special appropriations
Special Accounts
Total for Programme 2.3
Programme 2.4: Higher Education Loan Programme
Administered expenses
Special appropriations
Total for Programme 2.4
Programme 2.5: Investment in Higher Education Research
Administered expenses
Special appropriations
Total for Programme 2.5
Programme 2.6: Research Capacity
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Special appropriations
Special Accounts
Expenses not requiring appropriation
Total for Programme 2.6
Programme 2.7: International Education Support
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Special Accounts
Total for Programme 2.7
39
2014–15
Estimated
actual
expenses
$'000
2015–16
Estimated
expenses
$'000
6,453,587
6,652,630
6,453,587
6,652,630
(938,334)
261,565
(938,334)
261,565
19,171
412,728
146,540
11,124
471,736
36,627
578,439
519,487
2,403,707
2,407,891
2,403,707
2,407,891
1,755,928
1,803,439
1,755,928
1,803,439
112,900
4,654
66,950
13,295
160,832
4,734
14,935
197,799
180,501
65,753
1,742
53,696
1,785
67,495
55,481
Department of Education and Training Budget Statements
Table 2.1.2: Budgeted Expenses for Outcome 2 (continued)
2014–15
Estimated
actual
expenses
$'000
2015–16
Estimated
expenses
$'000
(a)
Programme 2.8: Building Skills and Capability
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Special appropriations
Total for Programme 2.8
Outcome 2 Totals by appropriation type
Administered Expenses
Ordinary annual services (Appropriation Bill No. 1)
Special appropriations
Special Accounts
Expenses not requiring appropriation
Departmental expenses
Departmental appropriation (b)
Special Accounts
Expenses not requiring appropriation in the Budget year
Total expenses for Outcome 2
(c)
522,187
29,473
1,319,941
188,723
551,660
1,508,664
720,011
10,121,743
215,232
13,295
1,545,593
11,790,718
38,412
14,935
157,531
3,625
191,031
2,850
22,130
27,812
11,253,567
13,611,351
2014–15
2015–16
Average Staffing Level (number)
813
1,124
(a) 2014–15 Estimated actual expenses reflect a part year effect due to the Machinery of Government
changes announced on 23 December 2014.
(b) Departmental Appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and
‘Revenue from independent sources (s74)’.
(c) Expenses not requiring appropriation in the budget year are made up of Depreciation Expenses,
Amortisation Expenses, Makegood Expenses and Audit Fees.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of
the budget year as government priorities change.
40
Department of Education and Training Budget Statements
Programme 2.1 Commonwealth Grant Scheme
Programme objective
Ensuring a highly skilled workforce and educated community is a key priority for the
Government. Through the Commonwealth Grant Scheme (CGS), the Government
subsidises the tuition costs for higher education students enrolled in undergraduate
and postgraduate degrees.
Currently the Government provides funding on a demand-driven basis for all
domestic students enrolled in a bachelor degree at a public university. Limited funding
is also provided for students enrolled in a sub-degree and postgraduate degree
programmes.
Under its proposed reforms to higher education, the Government aims to ensure more
students have the opportunity to attain a higher education, particularly those from less
educationally advantaged backgrounds. The reforms propose the extension of CGS
funding to domestic students enrolling in all higher education diplomas, advanced
diplomas and associate degrees and in accredited undergraduate degrees at nonuniversity higher education providers, such as Technical and Further Education
institutions and private colleges.
Programme 2.1 components contribute to achieving the objectives through:
 making a direct contribution to the cost of educating all Commonwealth supported
students

providing additional funding to meet the higher costs associated with the delivery
of higher education in regional locations

supporting educationally disadvantaged students to prepare for and successfully
complete higher education through funding for enabling courses

meeting medical workforce training needs through the provision of targeted
support for initial-entry medical programmes.
41
Department of Education and Training Budget Statements
Programme expenses
Under the Government’s reforms to higher education, the future growth in resourcing
for the sector encompasses expansion in eligibility, moderated by changes to subsidy
rates. These changes will achieve a better balance between government and students in
sharing the cost of higher education and to ensure the long term sustainability of the
CGS and the demand-driven system.
Programme expenses 2.1 Commonwealth Grant Scheme
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
Special Appropriations:
Higher Education Support Act 2003
Cluster Fund and Place Loadings
Regional Loading
6,386,206
67,381
6,582,467
70,163
6,369,120
70,217
6,457,023
71,902
6,603,426
73,628
Total Programme expenses
6,453,587
6,652,630
6,439,337
6,528,925
6,677,054
Programme 2.1 deliverables
Deliverables
2014–15
Revised
Budget
2015–16
Budget
2016–17
2017–18
2018–19
Provision of funding to higher education providers to support higher
education student places
Number of Commonwealth
supported domestic
undergraduate places
Number of Commonwealth
supported domestic
postgraduate coursework places
Number of enabling places
Number of Commonwealth Grant
Scheme (CGS) medical places
Number of regional campuses
under the CGS for which
regional loading is applied
558,700
573,800
626,000
646,800
667,000
39,000
39,500
44,000
45,400
45,300
9,800
9,700
9,700
9,700
9,500
13,100
13,100
13,100
13,100
13,100
46
46
46
46
46
42
Department of Education and Training Budget Statements
Programme 2.1 key performance indicators
Key performance indicators
2014–15
Revised
Budget
2015–16
Budget
2016–17
2017–18
2018–19
Increased student participation in higher education
Number of domestic enrolments
(full-time equivalent)
721,200
740,000
808,000
835,000
859,000
Number of domestic
postgraduate enrolments (fulltime equivalent)
122,300
125,000
137,000
142,000
145,000
Number of undergraduate
completions
201,200
207,000
226,000
233,000
240,000
Number of postgraduate
coursework completions
122,600
125,000
138,000
142,000
145,000
43
Department of Education and Training Budget Statements
Programme 2.2 Higher Education Superannuation Programme
Programme objective
The Higher Education Superannuation Programme provides supplementary funding
to assist universities to meet superannuation expenses incurred for eligible current and
former university employees who are members of identified state government
emerging cost superannuation schemes.
A portion of the funding is recovered from the relevant states under cost-sharing
arrangements.
Programme expenses
Demand for funding will increase as remaining eligible staff retire. This demand is
expected to peak around 2020. The negative expense in 2014–15 is a result of the write
back of the provision for doubtful debts due to the resolution between the
Commonwealth and NSW Governments on unfunded NSW university
superannuation liabilities.
Programme expenses 2.2 Higher Education Superannuation Programme
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
Special Appropriations:
Higher Education Support Act 2003
Higher Education Superannuation
Programme
(938,334)
261,565
258,873
254,829
250,274
Total Programme expenses
(938,334)
261,565
258,873
254,829
250,274
Programme 2.2 key performance indicators
Key performance indicators
Eligible Table A universities
14
2014–15
Revised
Budget
2015–16
Budget
2016–17
2017–18
2018–19
17
27 14
27
27
27
Increase is as a result of an agreement being reached between the Commonwealth and NSW
Governments on unfunded NSW university superannuation liabilities .
44
Department of Education and Training Budget Statements
Programme 2.3 Higher Education Support
Programme objective
The objectives of Programme 2.3 are to improve higher education access and
participation, and to ensure that the quality of our higher education system is
maintained and improved.
Programme 2.3 components contribute to achieving the objectives through:

improving access to, and the educational outcomes for, students from
disadvantaged backgrounds, including people from low socio-economic status
backgrounds, Aboriginal and Torres Strait Islander backgrounds, students with a
disability and those from regional and remote areas

promoting and supporting the enhancement of learning and teaching

independently administering quality indicators for learning and teaching that help
focus on quality and provide better information for student choice

supporting the ongoing operations of a number of National Institutes

driving major improvement in the quality of training of teachers of mathematics
and science.
45
Department of Education and Training Budget Statements
Programme expenses
The Promotion of Excellence in Learning and Teaching in Higher Education (PELTHE)
programme will be redesigned by establishing an ongoing institution to administer the
programme of grants, fellowships and awards in a university, in place of the Office for
Learning and Teaching.
Programme expenses 2.3 Higher Education Support
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
327
4,309
156
4,309
-
4,309
-
4,309
-
4,309
-
4,779
9,600
6,815
-
6,817
-
6,818
-
6,818
-
7,120
622
7,129
18,750
7,276
26,250
7,450
15,000
7,629
-
163,653
207,333
175,638
209,662
170,675
213,966
173,830
219,102
186,941
224,360
18,886
15,114
14,009
9,921
11,756
2,483
8,015
501
8,207
513
-
36,627
7,093
-
-
78
-
-
-
-
146,462
36,627
-
-
-
578,439
519,487
450,625
435,025
Total Programme expenses
(a) The legislation for this item is yet to be passed and the name is subject to change.
438,777
Annual administered expenses:
ATSIHEAC
National Disability Coordination Officer
VET FEE-HELP Redesign
Quality Indicators for Teaching and
Learning
Higher Education Special Projects
Special Appropriations:
Higher Education Support Act 2003
Disability Support Programme
Diversity and Structural Reform
Higher Education Participation
Programme
National Institutes
Promotion of Excellence in Learning and
Teaching in Higher Education
Quality Initiatives
Education Investment Fund (a)
Education Investment Fund - Higher
Education
Special Account Expenses:
Promotion of Excellence in Learning and
Teaching in Higher Education
Education Investment Fund - Higher
Education
2014–15
Estimated
actual
$'000
2015–16
Budget
46
Department of Education and Training Budget Statements
Programme 2.3 deliverables
Deliverables
2014–15
Revised
Budget
2015–16
Budget
2016–17
2017–18
2018–19
Provision of learning and teaching awards and grants
Number of learning and teaching
citations and awards provided to
higher education providers by
the Promotion of Excellence in
Learning and Teaching in Higher
Education Programme
184
184
n/a 15
n/a
n/a
Number of learning and teaching
projects supported by the
Promotion of Excellence in
Learning and Teaching in Higher
Education Programme
58
58
n/a 16
n/a
n/a
Number of maths and science
projects supported by the
Australian Maths and Science
Partnerships Programme 17
22
11 18
n/a 19
n/a
n/a
Number of maths and science
educational activities supported
by the Australian Mathematical
Sciences Institute project
n/a
5
n/a 20
n/a
n/a
2015–16
Budget
2016–17
2017–18
2018–19
10
n/a 21
n/a
n/a
Programme 2.3 key performance indicators
Key performance indicators
2014–15
Revised
Budget
Improved infrastructure for tertiary education
Number of infrastructure projects
supported by – EIF Regional
Priorities Round and SAF
15
16
17
18
19
20
21
15
The Promotion of Excellence in Learning and Teaching in Higher Education Programme will
be redesigned and managed by a university or consortium of universities from 1 July 2016.
The Promotion of Excellence in Learning and Teaching in Higher Education Programme will
be redesigned and managed by a university or consortium of universities from 1 July 2016.
This deliverable was previously reported as a key performance indicator. It replaces a
deleted deliverable referring to the value of funding for the Australian Maths and Science
Partnerships Programme.
Projects have different funding end dates hence fewer projects were supported in 2015–16.
Programme funding ends in June 2016.
Subject to approval of new project commencing in 2016–17.
Funding ceases 2016–17.
47
Department of Education and Training Budget Statements
Key performance indicators
2014–15
Revised
Budget
2015–16
Budget
2016–17
2017–18
2018–19
Improved quality in higher education
Higher education graduates in
full-time employment within four
months of completion of degree
as a proportion of those
available for work
68.1%
66.4%
66.1%
67.1%
67.4%
Graduate starting salaries as a
proportion of Male Average
Weekly Earnings
74.0%
74.0%
74.0%
74.0%
74.0%
Increased participation by previously under-represented groups
Number of domestic
undergraduate low SES
enrolments
131,400
141,000
157,000
166,000
175,000
Statistical Area Level 1 (SA1)
measure of the number of
domestic undergraduates in low
SES
119,700
128,000
143,000
151,000
159,000
Proportion of higher education
undergraduate students from a
low SES background
17.7%
18.1%
18.5%
18.9%
19.3%
Number of Indigenous students
enrolled at funded institutions
13,800
14,300
14,800
15,300
15,800
1,850
1,920
1,990
2,050
2,120
14,200
14,700
15,200
15,700
16,200
Number of Indigenous
completions at funded
institutions
Number of Indigenous student
enrolments by selected higher
education course level
categories
Increased participation in Science and Maths
Number of universities
participating in Australian Maths
and Science Partnership
Programme (AMSPP) projects
22
19
n/a 22
n/a
n/a
Number of students participating
in Australian Mathematical
Sciences Institute (AMSI)
activities
313
313
n/a 23
n/a
n/a
22
23
Funding for AMSPP ends in June 2016.
While funding for AMSI is included in the forward estimates, funding is subject to approval
of a new project commencing in 2016–17.
48
Department of Education and Training Budget Statements
Programme 2.4 Higher Education Loan Programme
Programme objective
The objective of Programme 2.4 is to remove the up-front cost barriers to tertiary
education and training. This is achieved through the provision of income contingent
loans for students undertaking higher education courses and in certain higher level
vocational education and training courses.
Programme 2.4 components contribute to achieving these objectives through:

HECS-HELP—provides loans to eligible Commonwealth supported higher
education students to pay their student contributions

FEE-HELP—provides loans to eligible fee-paying higher education students to pay
all or part of their tuition fees

OS-HELP—provides loans to eligible Commonwealth supported higher education
students who wish to undertake some of their Australian course of study overseas

SA-HELP—provides loans to eligible higher education students to pay Student
Services and Amenities Fees charged by their higher education provider

VET FEE-HELP—provides loans to eligible students to pay all or part of their
tuition fees for VET accredited diploma, advanced diploma, graduate certificate
and graduate diploma courses.
Programme expenses
Higher Education Loan Programme expenses are expected to be moderated by
requiring Australians who are overseas to make repayments on an income contingent
basis from July 2017. Improvements to the VET FEE-HELP scheme will also assist in
moderating growth in expenses.
Programme expenses 2.4 Higher Education Loan Programme
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
Special Appropriations:
Higher Education Support Act 2003
Higher Education Loan Programme
Total Programme expenses
2,403,707
2,407,891
3,074,478
3,759,218
4,431,889
2,403,707
2,407,891
3,074,478
3,759,218
4,431,889
49
Department of Education and Training Budget Statements
Programme 2.4 deliverables
Deliverables
2014–15
Revised
Budget
2015–16
Budget
2016–17
2017–18
2018–19
Provision of HELP loans to higher education students
Number of Commonwealth
supported places for which
HECS-HELP loans paid
509,100
523,000
593,000
613,000
631,000
Number of places for which FEEHELP loans paid
91,600
90,000
123,000
125,000
128,000
Number of OS-HELP loans to
assist students to undertake
some of their course overseas
12,500
15,600
17,100
18,000
18,400
Number of SA-HELP loans to
assist students to pay their
services and amenities fees
479,900
500,000
512,000
523,000
532,000
Number of places for which VET
FEE-HELP loans paid
225,500
128,000
183,000
214,000
225,000
2016–17
2017–18
2018–19
Programme 2.4 key performance indicators
Key performance indicators
2014–15
Revised
Budget
2015–16
Budget
Students who are able to repay their HELP debts do so
Average amount of debt ($)
17,500
18,900
20,000
21,200
22,500
Average number of years to
repay debt
8.7
8.8
9.0
9.2
9.4
20%
19%
20%
21%
21%
Proportion of new debt not
expected to be repaid
50
Department of Education and Training Budget Statements
Programme 2.5 Investment in Higher Education Research
Programme objective
The Australian Government is committed to a world-class research system, one which
encourages innovation and economic growth. Quality collaboration, diversity, impact,
and sustainability are the key priorities for the Government and drive its investment in
Australian research and research capacity.
Programme 2.5 components contribute to achieving the objectives through:

supporting the indirect costs associated with conducting Australian competitive
grant research through the Sustainable Research Excellence initiative and the
Research Infrastructure Block Grants

providing flexibility for higher education providers to support their research
strengths and facilitate collaborative research activities between universities,
industry and end-users through the Joint Research Engagement scheme

providing living stipends and tuition fee support for research training through the
Research Training Scheme, the Australian Postgraduate Awards and the
International Postgraduate Research Scholarships.
Programme expenses
Programme expenses 2.5 Investment in Higher Education Research
Special Appropriations:
Higher Education Support Act 2003
International Post Graduate Research
Research Investment Adjustment Scheme
Joint Research Engagement Programme
Research Infrastructure Block Grants
Research Training
Sustainable Research Excellence
Australian Post Graduate Awards
Total Programme expenses
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
22,201
356,083
239,384
676,705
185,417
276,138
22,449
8,000
360,230
242,171
649,752
238,732
282,105
22,910
16,000
367,625
247,143
628,470
137,142
287,767
23,459
16,000
376,448
253,074
643,553
255,677
294,610
24,022
385,483
259,148
658,999
225,249
301,681
1,755,928
1,803,439
1,707,057
1,862,821
1,854,582
51
Department of Education and Training Budget Statements
Programme 2.5 deliverables
Deliverables
2014–15
Revised
Budget
2015–16
Budget
2016–17
2017–18
2018–19
Provision of support for new and existing research training
Number of commencing
Australian Postgraduate Awards
allocated 24
Up to
3,500
Up to
3,500
Up to
3,500
Up to
3,500
Up to
3,500
Number of commencing
International Postgraduate
Research Scholarships allocated
330
330
330
330
330
2015–16
Budget
2016–17
2017–18
2018–19
Programme 2.5 key performance indicators
Key performance indicators
2014–15
Revised
Budget
Sustained research performance, transparency and accountability of
Australian higher education providers
Number of higher education
providers receiving support for
research
41
41
41
41
41
Sustained number of students completing higher degrees by research
Number of higher education
providers receiving support for
research training
The Equivalent Full-time Student
Load supported by the Research
Training Scheme
Number of higher degree by
research student completions
24
25
41
41
41
41
41
21,500
21,500
21,500
21,500
21,500
7,400
9,200 25
9,200
9,200
9,200
The data for this deliverable is by calendar year e.g. the 2014–15 data relates to the
2014 calendar year.
The data increase from 2014–15 is to take account of actual number of research student
completions.
52
Department of Education and Training Budget Statements
Programme 2.6 Research Capacity
Programme objective
Research advances our knowledge and drives our potential for innovation, as it shapes
economic competitiveness and social changes. New funding to continue the NCRIS
will support major research infrastructure that underpins world-class research activity
in Australia and provides the platform for collaboration between the research sector,
industry and government. Funding for Sustainable Research Excellence will be
redirected for the continuation of the NCRIS.
The objectives of Programme 2.6 are to increase the production, use and awareness of
research knowledge through:

promoting a strong culture of collaboration and networking

supporting research infrastructure

raising awareness of the importance of research and promoting scholarship across
all fields of study

supporting the costs of operating and maintaining capabilities funded under the
NCRIS

supporting regional and less research intensive universities to increase their
research capacity

promoting the central role of research, science and technology in advancing the
interests of Australia’s social and economic wellbeing through the Higher
Education Research Promotion Programme.
The Collaborative Research Network will cease from 30 June 2016, without affecting
existing activities.
53
Department of Education and Training Budget Statements
Programme expenses
Programme expenses 2.6 Research Capacity
Annual administered expenses:
Collaborative Research Network
Programme
Commonwealth - ANU Strategic
Relationships
National Collaborative Research
Infrastructure Strategy
The Conversation - Funding Support
Australia Consensus
Special Appropriations:
Higher Education Support Act 2003
Higher Education Research Promotion
Special Account Expenses:
Education Investment Fund - Research
Expenses not requiring appropriation
AIATSIS
Total Programme expenses
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
10,300
9,332
-
-
-
500
500
500
500
-
100,100
1,000
1,000
150,000
1,000
150,000
1,000
1,000
-
4,654
4,734
4,847
4,964
5,081
66,950
-
-
-
-
13,295
14,935
9,836
9,881
9,995
197,799
180,501
166,183
16,345
15,076
54
Department of Education and Training Budget Statements
Programme 2.6 deliverables
Deliverables
2014–15
Revised
Budget
2015–16
Budget
2016–17
2017–18
2018–19
n/a
12
n/a 27
n/a
n/a
n/a
6
6
6
6
n/a
15
15
15
n/a 30
Research capacity building
Number of research institutions
supported by the Collaborative
Research Networks (CRN)
programme 26
Promotion of research, science and technology
Number of learned academies and
associations supported under the
Higher Education Research
Promotion (HERP) scheme 28
Public policy capability
Number of Australian Public Service
agencies participating in National
Security College (NSC) activities 29
26
27
28
29
30
New deliverable—note that 15 research institutions were supported under the CRN in
2014–15. Projects have different funding end dates hence fewer projects were supported in
2015–16.
Programme funding ends in June 2016.
New deliverable—note that six institutions were supported under the HERP scheme in
2014–15.
New deliverable – note that 16 APS agencies participated in NSC activities 2014–15. This will
reduce to 15 due to Machinery of Government changes to the Immigration and Customs
portfolios.
Programme funding ends in June 2018.
55
Department of Education and Training Budget Statements
Programme 2.6 key performance indicators
Key performance indicators
2014–15
Revised
Budget
2015–16
Budget
2016–17
2017–18
2018–19
Improved research performance of less research intensive universities
Number of partnerships
supported by the Collaborative
Research Networks programme
23
20
n/a
n/a
n/a
54,000
54,000
Increased number of participants in activities promoting researchbased careers
Number of attendees
participating in activities
promoting research awareness
54,110
54,000
54,000
Increased access to research infrastructure to facilitate and support
collaborative research activities
Number of research
infrastructure projects
established under the National
Collaborative Research
Infrastructure Strategy to offer
services to the research sector
27
27
27
n/a
n/a
National Security College training courses
Number of Commonwealth
participants in National Security
College courses
150
80 31
80
80
n/a 32
Number of participants in
National Security College
courses 33
n/a
350
350
350
n/a 34
31
32
33
34
This is the number of places supported under the NSC project funding agreement rather
than broader Commonwealth funded participation reported in 2014–15. Note that the
department is currently seeking 15 agencies’ commitment to continuation of funding for
those 80 course places post June 2016.
Programme funding ends in June 2018.
New key performance indicator.
Programme funding ends in June 2018.
56
Department of Education and Training Budget Statements
Programme 2.7 International Education Support
Programme objective
International education is a vital part of Australia’s prosperity. Programme 2.7
incorporates a number of programmes to support the development of Australia’s
international education and research sector through:

building the capacity and reputation of Australian education and developing
regional and global engagement by delivering a range of international scholarships
and fellowships to attract the best and brightest

providing grants to support the outward mobility of Australian students including
the New Colombo Plan scholarship and mobility programmes in collaboration
with the Department of Foreign Affairs and Trade

supporting Australia’s bilateral and multilateral education links with key overseas
partners

developing and strengthening mutually beneficial government-to-government,
institution-to-institution and people-to-people links and improving the openness
and transparency of education systems to support student, academic, provider and
international labour market mobility

positioning Australia as a regional and world leader in international education
cooperation and advancing the sustainable development of Australia’s
international education and research engagement

ensuring quality education through the arrangements set out under the Education
Services for Overseas Students Act 2000 and related legislative framework.

ensuring the draft National Strategy for International Education is finalised in
2015.
57
Department of Education and Training Budget Statements
Programme expenses
Funding for the Regional Links Programme, Increased Profile of Australian
International Education Sector (IPAIES) Programme, Professional Services
Development Programme and Assessment Subsidy for Overseas Trained Professionals
programme will cease from 30 June 2015. A small number of contractual commitments
under the IPAIES programme extend over the forward estimates.
Programme expenses 2.7 International Education Support
Annual administered expenses:
International Education Support
Assessment Subsidy for Overseas
Trained Professionals
Special Account Expenses:
Overseas Student Tuition Fund
Total Programme expenses
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
64,547
53,696
52,703
48,832
48,707
1,206
-
-
-
-
1,742
1,785
1,898
2,019
2,148
67,495
55,481
54,601
50,851
50,855
58
Department of Education and Training Budget Statements
Programme 2.7 deliverables
Deliverables
2014–15
Revised
Budget
2015–16
Budget
2016–17
2017–18
2018–19
Provision of International education support 35
Number of projects and/or
activities funded by the
Increased Profile of Australian
International Education Sector
programme
Number of international
scholarships, fellowships and
exchange opportunities
supported (Endeavour and
mobility programmes)
18
2 36
1
1
n/a
6,205
3,100 37
3,100
3,100
3,100
2016–17
2017–18
2018–19
Programme 2.7 key performance indicators
Key performance indicators
2014–15
Revised
Budget
2015–16
Budget
International students’ satisfaction with studying and living in Australia
Proportion of international
student survey respondents who
are satisfied or very satisfied
with studying in Australia
>80%
>85%
>85%
>85%
>85%
Proportion of international
student survey respondents who
are satisfied or very satisfied
with living in Australia
>80%
>80%
>80%
>80%
>80%
35
36
37
Previous deliverables relating to Regional Links and Assessment Subsidy for Overseas
Trained Professionals programme have been removed due to programmes ceasing 30 June
2015.
Funding for this programme will cease from 2015–16 onwards, noting that there is a small
number of contractual funding commitments over the forward estimates.
The reduction in deliverables reflects the Australian Government’s decision to reallocate
funding that supported undergraduate mobility to the New Colombo Plan from 2015–16
onwards.
59
Department of Education and Training Budget Statements
Programme 2.8 Building Skills and Capability
Programme objective
VET is central to Australia’s economic growth, competitiveness, and business
productivity by providing employees or potential employees with the skills required
for a job or a pathway into a job.
The Australian Government is working to create an effective and efficient skills and
training system that is industry led and delivers the skills Australian employers need.
A range of system reforms will be implemented in 2015–16 to improve the
responsiveness of the system to industry and enhance programme outcomes.
Programme 2.8 supports this vision through the following sub-programmes:

Sub-programme 2.8.1 Industry Competitiveness—this sub-programme facilitates
training that will enhance Australian businesses’ competitiveness in global
markets

Sub-programme 2.8.2 Skills Development—this sub-programme is designed to
increase completions of apprenticeships and develop the skills of the Australian
workforce

Sub-programme 2.8.3 Access to Training—this sub-programme is designed to
provide clearer pathways and improved access to training which allows
Australians to obtain jobs and progress to better career opportunities

Sub-programme 2.8.4 Support for the National Training System—this subprogramme is designed to develop an effective and efficient national training
system that meets the needs of Australia’s current and emerging industries.
Linked to: Specific Purpose Payments and National Partnerships—linked to the
Department of the Treasury, 1.9 National Partnership Payments to the States.
60
Department of Education and Training Budget Statements
Programme expenses
Programme expenses 2.8 Building Skills and Capability
Sub-programme 2.8.1: Industry
Competitiveness
Annual administered expenses:
Industry Skills Fund
National Workforce Development Fund
Sub-programme 2.8.2: Skills Development
Annual administered expenses:
Australian Apprenticeships Support
Network
Australian Apprenticeships Incentives
Programme
Job Ready Programme - Trades
Recognition Australia
Accelerated Australian Apprenticeships
Apprentice to Business Owner Business Skills and Mentoring
Australian Apprenticeships Mentoring
Programme
Special Appropriations:
Trade Support Loan Act 2014
Trade Support Loans
Sub-programme 2.8.3: Access to Training
Annual administered expenses:
Adult Migrant English Programme
National Foundation Skills Strategy
Skills for Education and Employment
Programme
Australian Apprenticeships Access
Workplace English Language and
Literacy
Sub-programme 2.8.4: Support for the
National Training System
Annual administered expenses:
Industry Workforce Training
My Skills Website
National Centre for Vocational Education
Research
National Skills Standards Council
National Training System COPE
Australian Industry and Skills Committee
2014–15
Estimated
actual (a)
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
27,701
24,272
164,220
1,082
153,970
431
157,715
421
159,452
-
110,624
200,050
189,092
189,473
189,447
158,688
435,300
394,945
392,083
392,083
3,947
1,533
4,634
490
4,634
-
4,634
-
4,634
-
3,093
2,100
-
-
-
3,264
-
-
-
-
29,473
188,723
209,673
231,021
233,332
94,563
1,042
283,902
131
273,749
-
283,217
-
297,759
-
59,522
1,627
138,816
-
144,521
-
152,016
-
159,675
-
4,641
4,763
293
-
-
18,335
1,045
54,855
572
54,605
542
55,822
554
57,497
565
308
7,382
600
686
26,857
1,483
686
33,391
1,487
686
34,777
1,493
686
35,333
1,498
551,660 1,508,664 1,462,019 1,503,912 1,531,961
Total programme expenses
(a) 2014–15 Estimated expenses reflect a part year effect due to the Machinery of Government changes
announced on 23 December 2014.
61
Department of Education and Training Budget Statements
Programme 2.8 deliverables
Deliverables
2014–15
Revised
Budget
2015–16
Budget
2016–17
2017–18
2018–19
Sub-programme 2.8.1: Industry competitiveness
Industry Skills Fund – Youth Pilot Programmes (Training for
Employment Scholarships and Youth Employment Pathways)
Number of eligible young people
assisted through the Training for
Employment Scholarships 38
n/a
5,000
n/a
n/a
n/a
Number of eligible young people
assisted through the Youth
Employment Pathways 39
n/a
2,000
n/a
n/a
n/a
Sub-programme 2.8.3: Access to training
Skills for Education and Employment programme
Number of eligible job seekers
assisted through the Skills for
Education and Employment
programme
27,000
27,300
27,990
29,000
30,000
57,000
60,000
57,000
58,000
60,000
Adult Migrant English Programme
Number of eligible migrants and
humanitarian entrants assisted
through the Adult Migrant
English Programme 40
38
39
40
New deliverable.
New deliverable.
The annual fluctuations of clients accessing AMEP are adjusted to changes made to the
Government’s migration policies. These include changes to annual migration programmes,
intake numbers and cohorts deemed to be eligible for the programme.
62
Department of Education and Training Budget Statements
Programme 2.8 key performance indicators
Performance measures for Programme 2.8:

growth in the number and proportion of Australians with VET skills (includes
measurement of whether employed or not)

growth in the apprenticeship completion rate

change in reported employer satisfaction with vocationally-trained graduates

contribution to productivity growth from changes in skills acquisition

changes in individual returns from investment in education and training,
including employment and wages

monitoring of progress of National Partnerships reforms through assessment of
achievement as outlined in Annual Performance Reports.
Key performance indicators
2014–15
Revised
Budget
2015–16
Budget
2016–17
2017–18
2018–19
38,000
44,000
45,500
46,000
Sub-programme 2.8.1: Industry competitiveness
Industry Skills Fund
Number of participants
supported to undertake training
and/or support services 41
7,000
Sub-programme 2.8.2: Skills development
Australian Apprenticeships Support Network
Number of organisations
contracted to provide services as
Australian Apprenticeships
Centres
22
n/a
n/a
n/a
n/a
Number of organisations
contracted to provide services as
Australian Apprenticeship
Support Network providers 42
n/a
11
11
11
n/a
78,000
79,000
80,000
80,000
Australian Apprenticeships Incentives Programme
Total number of employers who
have received a payment under
the programme 43
41
42
43
81,000
Programme commenced in January 2015.
Australian Apprenticeship Support Network Providers will provide new Australian
Apprenticeship services from 1 July 2015.
Impact of previously published estimates results from changes to eligibility arrangements for
various payment types.
63
Department of Education and Training Budget Statements
Key performance indicators
Total number of Australian
apprentices receiving a Personal
Benefit through the
programme 44
2014–15
Revised
Budget
2015–16
Budget
2016–17
2017–18
2018–19
84,000
10,000
3,000
3,000
3,000
59,500
74,500
82,000
89,500
90,0000
Trade Support Loans
Total number of Australian
Apprentices assisted through
Trade Support Loan payments
44
Impact of cessation of Support for Adult Australian Apprentices for apprentices announced
in 2014 MYEFO.
64
Department of Education and Training Budget Statements
Former Outcome 1: Improved access to quality services that support early
childhood learning and care for children through a national quality framework,
agreed national standards, investment in infrastructure, and support for parents,
carers, services and the workforce.
Former Outcome 1 Strategy
The department’s responsibilities changed as a result of the Administrative
Arrangements Order that took effect on 23 December 2014:

the responsibility for child care and early childhood development transferred from
the department to the Department of Social Services

the department retained responsibility for preschool education and the Australian
Early Development Census.
The department’s outcome structure was updated to reflect these changes and realign
the department’s functions. A diagram of the department’s outcome structure changes
is on page 18–19.
The department’s 2014–15 actuals for the programmes of the Former Outcome 1 will be
reported under this outcome.
65
Department of Education and Training Budget Statements
Outcome expense statement
Table 2.1 provides an overview of the total expenses for the Former Outcome 1 by
programme.
Table 2.1.3: Budgeted Expenses for Former Outcome 1
Former Outcome 1: Improved access to quality services that support
early childhood learning and care for children through a national quality
framework, agreed national standards, investment in infrastructure, and
support for parents, carers, services and the workforce.
Former Programme 1.1: Support for the Child Care System
Administered expenses
Ordinary annual services (Appropriation Act No. 1) (b)
Special Accounts
Total for Former Programme 1.1
Former Programme 1.2: Child Care Benefit
Administered expenses
Special appropriations
Total for Former Programme 1.2
Former Programme 1.3: Child Care Rebate
Administered expenses
Special appropriations
Total for Former Programme 1.3
Former Programme 1.4: Early Childhood Education
Administered expenses
Ordinary annual services (Appropriation Act No. 1)
2015–16
Estimated
expenses
$'000
335,103
61,525
-
396,628
-
1,829,392
-
1,829,392
-
1,582,617
-
1,582,617
-
8,043
-
8,043
-
343,146
3,412,009
61,525
-
57,896
-
6,224
-
3,880,800
-
(c)
Total for Former Programme 1.4
Former Outcome 1 Totals by appropriation type
Administered Expenses
Ordinary annual services (Appropriation Act No. 1)
Special appropriations
Special Accounts
Departmental expenses
Departmental appropriation (d)
Expenses not requiring appropriation in the Budget year
Total expenses for Former Outcome 1
2014–15
Estimated
actual
expenses (a)
$'000
(e)
2014–15
2015–16
Average Staffing Level (number)
337
(a) 2014–15 Estimated expenses reflect a part year effect due to the Machinery of Government changes
announced on 23 December 2014.
(b) Includes the Australian Early Development Census (AEDC) retained by the Department of Education
and Training. The 2015–16 and forward estimates for AEDC will be reported under the new Outcome 1
(Programme 1.3 Early Learning and Schools Support).
(c) Retained by Department of Education and Training. 2015–16 and forward estimates will be reported
under the new Outcome 1 (Programme 1.3 Early Learning and Schools Support).
(d) Departmental Appropriation combines ‘Ordinary annual services (Appropriation Act No. 1)’ and
‘Revenue from independent sources (s74)’.
(e) Expenses not requiring appropriation in the Budget year are made up of Depreciation Expenses,
Amortisation Expenses, Makegood Expenses and Audit Fees.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of
the budget year as government priorities change.
66
Department of Education and Training Budget Statements
Former Programme 1.1 Support for the Child Care System
Programme expenses
Former Programme 1.1 Support for the Child Care System
2014–15
Estimated
actual (a)
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
Annual administered expenses:
Child Care Services Support (b)
Jobs Education and Training Child Care
Fee Assistance (JETCCFA)
Special Account Expenses:
Early Years Quality Fund Special
Account Act 2013
284,688
-
-
-
-
50,415
-
-
-
-
61,525
-
-
-
-
Total Programme expenses
396,628
(a) 2014–15 Estimated expenses reflect a part year effect due to the Machinery of Government changes
announced on 23 December 2014.
(b) Includes the Australian Early Development Census (AEDC) retained by the Department of Education
and Training. The 2015–16 and forward estimates for AEDC will be reported under the new Outcome 1
(Programme 1.3 Early Learning and Schools Support).
Former Programme 1.2 Child Care Benefit
Programme expenses
Former Programme 1.2 Child Care Benefit
2014–15
Estimated
actual (a)
$'000
Special Appropriations:
A New Tax System (Family Assistance)
(Administration) Act 1999
Child Care Benefit
1,829,392
2015–16
Budget
$'000
-
2016–17
Forward
estimate
$'000
-
2017–18
Forward
estimate
$'000
-
2018–19
Forward
estimate
$'000
-
Total Programme expenses
1,829,392
(a) 2014–15 Estimated expenses reflect a part year effect due to the Machinery of Government changes
announced on 23 December 2014.
67
Department of Education and Training Budget Statements
Former Programme 1.3 Child Care Rebate
Programme expenses
Former Programme 1.3 Child Care Rebate
2014–15
Estimated
actual (a)
$'000
Special Appropriations:
A New Tax System (Family Assistance)
(Administration) Act 1999
Child Care Rebate
1,582,617
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
-
-
2017–18
Forward
estimate
$'000
-
2018–19
Forward
estimate
$'000
-
Total Programme expenses
1,582,617
(a) 2014–15 Estimated expenses reflect a part year effect due to the Machinery of Government changes
announced on 23 December 2014.
Former Programme 1.4 Early Childhood Education
Programme expenses
Former Programme 1.4 Early Childhood Education (a)
2014–15
Estimated
actual
$'000
Annual administered expenses:
Early Childhood Education - Universal
Access
Early Learning Languages Australia
1,500
6,543
2015–16
Budget
$'000
-
2016–17
Forward
estimate
$'000
-
2017–18
Forward
estimate
$'000
-
2018–19
Forward
estimate
$'000
-
Total Programme expenses
8,043
(a) Retained by Department of Education and Training. 2015–16 and forward estimates will be reported
under the new Outcome 1 (Programme 1.3 Early Learning and Schools Support).
68
Department of Education and Training Budget Statements
Section 3: Explanatory tables and budgeted financial
statements
Section 3 presents explanatory tables and budgeted financial statements which provide
a comprehensive snapshot of entity finances for the 2015–16 budget year. It explains
how budget plans are incorporated into the financial statements and provides further
details of the reconciliation between appropriations and programme expenses,
movements in administered funds, special accounts and government Indigenous
expenditure.
3.1
EXPLANATORY TABLES
3.1.1 Movement of administered funds between years
Administered funds can be provided for a specified period, for example under annual
Appropriation Acts. Funds not used in the specified period with the agreement of the
Finance Minister may be moved to a future year. Table 3.1.1 shows the movement of
administered funds approved between years.
Table 3.1.1: Movement of administered funds between years (a)
2014–15
$'000
2015–16
$'000
2016–17
$'000
2017–18
$'000
2018–19
$'000
Outcome 2:
Higher Education Support
(22,593)
15,500
7,093
Total movement of administered
(22,593)
15,500
7,093
funds
(a) Figures displayed as a negative (-) represent a decrease in funds and a positive reflect an increase in
funds.
69
Department of Education and Training Budget Statements
3.1.2 Special accounts
Special accounts provide a means to set aside and record amounts used for specified
purposes. Special accounts can be created by a Finance Minister’s determination under
section 78 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act)
or under separate enabling legislation (section 80 of the PGPA Act refers). Table 3.1.2
shows the expected additions (receipts) and reductions (payments) for each account
used by the Department of Education and Training.
Table 3.1.2: Estimates of special account flows and balances
Outcome
National Youth Affairs Research
Scheme Special Account - s78
PGPA Act Det 2006/45 (A)
2015–16
1
National Youth Affairs
Research Scheme Special
Account - s78 PGPA Act Det
2006/45 (A)
2014–15
EIF Education Portfolio Special
Account - s80 PGPA [s181
Nation-Building Funds Act 2008]
(A)
2015–16
2
EIF Education Portfolio
Special Account - s80 PGPA
[s181 Nation-Building Funds
Act 2008] (A)
2014–15
EIF Research Portfolio Special
Account - s80 PGPA Act [s188
Nation-Building Funds Act 2008 ]
(A)
2015–16
EIF Research Portfolio
Special Account - s80 PGPA
Act [s188 Nation-Building
Funds Act 2008] (A)
2014–15
2
Opening
balance
$'000
Receipts
Payments Adjustments
$'000
$'000
251
240
(240)
-
251
251
240
(240)
-
251
-
36,627
(36,627)
-
-
-
146,462
(146,462)
-
-
-
-
-
-
-
70,950
-
-
70
-
(70,950)
$'000
Closing
balance
$'000
Department of Education and Training Budget Statements
Table 3.1.2: Estimates of special account flows and balances (continued)
Outcome
Overseas Students Tuition Fund s80 PGPA Act [s52A Education
Services for Overseas Students
Legislation Amendment Act
2012] (A)
2015–16
2
Overseas Students Tuition
Fund - s80 PGPA Act [s52A
Education Services for
Overseas Students Legislation
Amendment Act 2012] (A)
2014–15
Services for Other Entities and
Trust Monies - s78 PGPA Act
Det 2008/14 (A)
2015–16
1&2
Services for Other Entities and
Trust Monies - s78 PGPA Act
Det 2008/14 (A)
2014–15
Student Identifiers Special
Account - s80 PGPA Act [s48
Student Identifiers Act 2014} (D)
2015–16
2
Student Identifiers Special
Account - s80 PGPA Act [s48
Student Identifiers Act 2014]
(D)
2014–15
Early Years Quality Fund Special
Account - s80 PGPA Act 2013
Former
[s5 Early Years Quality Fund
Outcome
1
Special Account Act 2013 ] (A)
2015–16
Early Years Quality Fund
Special Account - s80 PGPA
Act 2013 [s5 Early Years
Quality Fund Special Account
Act 2013] (A)
2014–15
Total special accounts
2015–16 Budget estimate
Total special accounts
2014–15 estimated actual
(A) = Administered
(D) = Departmental
Opening
balance
$'000
Receipts
17,197
6,999
(1,785)
-
22,411
12,157
6,782
(1,742)
-
17,197
6,935
-
-
6,935
6,589
-
(78)
424
6,935
2,186
2,850
(2,850)
-
2,186
2,186
3,625
(3,625)
-
2,186
-
-
-
-
72,297
-
(61,525)
(10,772)
-
26,569
46,716
(41,502)
-
31,783
93,480
228,059
(284,622)
(10,348)
26,569
71
$'000
Payments Adjustments
$'000
-
-
$'000
Closing
balance
$'000
Department of Education and Training Budget Statements
3.1.3 Australian Government Indigenous expenditure
Table 3.1.3: Australian Government Indigenous expenditure (AGIE)
Approp
Approp
Bill No. 1 Bill No. 2
$'000
$'000
Department of Education and Training
Outcome 1
Administered 2015–16
Administered 2014–15
793
Departmental 2015–16
972
Departmental 2014–15
793
Total outcome 1 2015–16
972
Total outcome 1 2014–15
Outcome 2
Administered 2015–16
327
Administered 2014–15
353
Departmental 2015–16
816
Departmental 2014–15
353
Total outcome 2 2015–16
1,143
Total outcome 2 2014–15
Total Administered
2015–16
327
Total Administered 2014–15
Total Departmental
1,146
2015–16
1,788
Total Departmental 2014–15
1,146
Total AGIE 2015–16
2,115
Total AGIE 2014–15
Special
approp
$'000
- 234,703
- 217,222
- 234,703
- 217,222
Total Other
approp
$'000 $'000
Total Programme
$'000
234,703
217,222
793
972
235,496
218,194
-
234,703
217,222
793
972
235,496
218,194
1.1, 1.2
2.3
-
18,000
16,000
18,000
16,000
18,000
16,327
353
816
18,353
17,143
-
18,000
16,327
353
816
18,353
17,143
-
252,703
252,703
-
252,703
-
233,222
233,549
-
233,549
-
-
1,146
-
1,146
- 252,703
- 233,222
1,788
253,849
235,337
-
1,788
253,849
235,337
72
Department of Education and Training Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in entity resourcing and financial statements
There are no differences between the agency resourcing table 1.1 and financial
statements.
3.2.2 Analysis of budgeted financial statements
An analysis of the department’s budgeted financial statements, which consists of the
budgeted departmental statements and administered schedules, is provided below.
The 2014–15 estimated actual is used as the comparative year, but because it has been
affected by Machinery of Government changes some programmes only reflect part
financial year estimates. Given this, care needs to be taken in interpreting the
difference.
Budgeted departmental comprehensive income statement
The department’s income statement reflects a deficit across the forward estimates.
These deficits are solely attributable to the depreciation expense for the year. Expenses
for 2015–16 are estimated to be $313.9 million. This reflects a decrease of $28.8 million
from the estimated actual expense for 2014–15.
Budget departmental balance sheet
The budgeted net asset position of $80.0 million for 2015–16 represents a decrease of
$0.5 million from the 2014–15 estimated actual. The accumulated deficit apparent in
the balance sheet represents the accounting treatment applicable to depreciation
expense.
The structure of the balance sheet reflects the nature of the organisation. Key assets are
office fit-out (included in land and buildings), computer and office machines (included
in infrastructure, plant and equipment), and computer software (included in
intangibles). The most significant liability relates to employees and the leave
provisions that are accrued as a result of their employment.
Schedule of budgeted income and expenses administered on behalf of
Government
The schedule reflects the revenues/gains and expenses relating to the programmes
administered by the department on behalf of Government.
The administered revenue estimates predominately relate to the loan programmes
administered by the department, including Higher Education Loan Programmes
(HELP) and Trade Support Loans. The decrease in ‘other revenue’ reflects the removal
of the loan fees from the HELP.
The increase in Suppliers and Subsidies from 2014–15 to 2015–16 is mainly attributable
to Machinery of Government changes which saw the skills and training functions
73
Department of Education and Training Budget Statements
transferred into the department part way through the 2014–15 financial year, and the
transfer of the child care function to the Department of Social Services.
The significant decrease in personal benefits reflects the transfer of the Child Care
Rebate and Benefits programmes to the Department of Social Services.
Schedule of budgeted assets and liabilities administered on behalf of
Government
Total administered assets are projected to increase from $33.1 billion to $67.2 billion
over the period 2014–15 to 2018–19 mainly attributable to HELP. The total
administered liabilities predominately relates to the unfunded superannuation
provision for Australian Universities.
74
Department of Education and Training Budget Statements
3.2.3 Budgeted financial statements tables
Table 3.2.1: Comprehensive income statement (showing net cost of
services for the period ended 30 June)
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Total expenses
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services
Other
Total own-source revenue
Gains
Other
Total gains
Total own-source income
Net cost of/(contribution by) services
Revenue from Government
Surplus/(deficit) attributable to the
Australian Government
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation surplus
Total other comprehensive income
2014–15
Estimated
actual
$'000
2015–16
Budget
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
215,866
95,746
31,178
197,462
85,307
31,179
190,782
83,854
32,514
190,132
83,691
32,514
191,789
84,337
32,514
342,790
313,948
307,150
306,337
308,640
24,390
3,625
17,970
2,850
17,970
1,720
17,970
1,737
17,970
1,768
28,015
20,820
19,690
19,707
19,738
6,743
6,743
6,743
6,743
6,743
6,743
34,758
308,032
276,854
6,743
27,563
286,385
255,206
6,743
26,433
280,717
248,203
6,743
26,450
279,887
247,373
6,743
26,481
282,159
249,645
(31,178)
(31,179)
(32,514)
(32,514)
(32,514)
-
$'000
-
-
-
-
Total comprehensive income/(loss)
(31,178)
(31,179)
(32,514)
(32,514)
(32,514)
Total comprehensive income/(loss)
attributable to the Australian Government
(31,178)
(31,179)
(32,514)
(32,514)
(32,514)
2015–16
$'000
2016–17
$'000
2017–18
$'000
2018–19
$'000
Note: Impact of net cash appropriation arrangements
2014–15
$'000
Total comprehensive income/(loss)
excluding depreciation/amortisation
expenses previously funded through
revenue appropriations.
less depreciation/amortisation expenses
previously funded through revenue
appropriations (a)
31,178
-
-
-
-
31,179
32,514
32,514
32,514
Total comprehensive income/(loss) - as
(31,178)
(31,179)
(32,514)
(32,514)
(32,514)
per the statement of comprehensive
income
Prepared on Australian Accounting Standard basis.
(a) From 2010–11, the Government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities
(and select corporate Commonwealth entities) were replaced with a separate capital budget (the
Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information
regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.
75
Department of Education and Training Budget Statements
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
8,429
34,776
5,513
8,429
32,310
5,513
8,429
32,250
5,513
8,429
32,187
5,513
8,429
32,142
5,513
Total financial assets
48,718
46,252
46,192
46,129
46,084
Non-financial assets
Land and buildings
Property, plant and equipment
Intangibles
Other non-financial assets
46,383
10,718
81,095
8,599
46,194
13,940
80,099
8,599
47,629
13,767
69,678
8,599
49,078
13,545
59,246
8,599
51,063
11,815
49,000
8,599
Total non-financial assets
146,795
148,832
139,673
130,468
120,477
Total assets
195,513
195,084
185,865
176,597
166,561
LIABILITIES
Payables
Suppliers
Other payables
12,975
21,397
12,975
21,397
12,975
21,397
12,975
21,397
12,975
21,397
Total payables
34,372
34,372
34,372
34,372
34,372
Interest bearing liabilities
Other interest bearing liabilities
-
-
-
-
-
Total interest bearing liabilities
-
-
-
-
-
Provisions
Employee provisions
Other provisions
79,218
1,345
79,326
1,345
79,266
1,345
79,203
1,345
79,158
1,345
Total provisions
80,563
80,671
80,611
80,548
80,503
-
-
-
-
-
114,935
115,043
114,983
114,920
114,875
80,578
80,041
70,882
61,677
51,686
158,873
433
(97,629)
61,677
181,396
433
(130,143)
51,686
Liabilities included in disposal groups
held for sale
Total liabilities
Net assets
EQUITY*
Parent entity interest
Contributed equity
81,567
112,209
135,564
Reserves
433
433
433
Retained surplus (accumulated deficit)
(1,422)
(32,601)
(65,115)
Total Equity
80,578
80,041
70,882
Prepared on Australian Accounting Standard basis.
*
Equity is the residual interest in assets after the deduction of liabilities.
76
Department of Education and Training Budget Statements
Table 3.2.3: Departmental statement of changes in equity—summary of
movement (Budget year 2015–16)
Retained
earnings
$'000
Asset
revaluation
reserve
$'000
Other Contributed
reserves
equity/
capital
$'000
$'000
Total
equity
$'000
Opening balance as at 1 July 2015
Balance carried forward from previous period
Adjustment for changes in accounting policies
(1,422)
-
433
-
-
81,567
-
80,578
-
Adjusted opening balance
80,578
(1,422)
433
-
81,567
Comprehensive income
Other comprehensive income
Surplus/(deficit) for the period
(31,179)
-
-
-
(31,179)
Total comprehensive income
(31,179)
-
-
-
(31,179)
(31,179)
-
-
-
(31,179)
-
-
-
-
-
-
-
-
-
-
-
-
-
8,465
22,177
30,642
8,465
22,177
30,642
-
-
-
-
-
433
-
112,209
80,041
433
-
112,209
80,041
of which:
Attributable to the Australian Government
Transactions with owners
Distributions to owners
Returns on capital:
Dividends
Returns of capital:
Distribution of equity
Contributions by owners
Equity Injection
Equity Injection - Appropriation
Departmental Capital Budget (DCB)
Sub-total transactions with owners
Transfers between equity
Transfers between equity components
Estimated closing balance as at 30 June 2016
(32,601)
Closing balance attributable to the Australian
(32,601)
Government
Prepared on Australian Accounting Standards basis.
77
Department of Education and Training Budget Statements
Table 3.2.4: Budgeted departmental statement of cash flows
(for the period ended 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
OPERATING ACTIVITIES
Cash received
Appropriations
Sale of goods and rendering of services
Other
278,706
24,390
3,625
Total cash received
Cash used
Employees
Suppliers
Total cash used
Net cash from/(used by) operating
activities
INVESTING ACTIVITIES
Cash received
Other
Total cash received
Cash used
Purchase of property, plant and
equipment
Total cash used
Net cash from/(used by) investing
activities
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
257,672
17,970
2,850
248,263
17,970
1,720
247,436
17,970
1,737
249,690
17,970
1,768
306,721
278,492
267,953
267,143
269,428
215,862
89,003
197,355
78,563
190,843
77,110
190,194
76,949
191,833
77,595
304,865
275,918
267,953
267,143
269,428
1,856
2,574
-
-
-
$'000
-
-
-
-
-
-
-
-
-
-
29,241
33,216
23,355
23,309
22,523
29,241
33,216
23,355
23,309
22,523
(29,241)
(33,216)
(23,355)
(23,309)
(22,523)
27,385
30,642
23,355
23,309
22,523
27,385
30,642
23,355
23,309
22,523
Cash used
Other
-
-
-
-
-
Total cash used
-
-
-
-
-
27,385
30,642
23,355
23,309
22,523
-
-
-
-
-
8,429
8,429
8,429
8,429
8,429
-
-
-
-
-
8,429
8,429
8,429
8,429
Net cash from/(used by) financing
activities
Net increase/(decrease) in cash held
Cash and cash equivalents at the
beginning of the reporting period
Effect of exchange rate movements on
cash and cash equivalents at the
beginning of reporting period
Cash and cash equivalents at the end
8,429
of the reporting period
Prepared on Australian Accounting Standard basis.
78
Department of Education and Training Budget Statements
Table 3.2.5: Departmental capital budget statement
(for the period ended 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
19,191
22,177
22,380
22,345
22,523
3,489
8,465
975
964
-
22,680
30,642
23,355
23,309
22,523
22,680
-
30,642
-
23,355
-
23,309
-
22,523
-
22,680
30,642
23,355
23,309
22,523
7,630
11,039
975
964
-
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Equity injections - Bill 2
Total new capital appropriations
Provided for:
Purchase of non-financial assets
Other Items
Total Items
PURCHASE OF NON-FINANCIAL ASSETS
Funded by capital appropriations
(a)
Funded by capital appropriation - DCB
(b)
21,611
22,177
22,380
22,345
22,523
TOTAL
RECONCILIATION OF CASH USED TO
ACQUIRE ASSETS TO ASSET
MOVEMENT TABLE
Total purchases
less additions by finance lease
less additions by creditors/borrowings
plus borrowing/finance costs
plus annual finance lease costs
less gifted assets
less s75 transfers/restructuring
29,241
33,216
23,355
23,309
22,523
29,241
-
33,216
-
23,355
-
23,309
-
22,523
-
Total cash used to acquire assets
29,241
33,216
23,355
23,309
22,523
Prepared on Australian Accounting Standard basis.
(a) Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.
(b) Does not include annual finance lease costs. Includes purchases from current and previous years'
Departmental Capital Budgets (DCBs).
79
Department of Education and Training Budget Statements
Table 3.2.6: Statement of asset movements (Budget year 2015–16)
Land Buildings
$'000
$'000
Other
property,
plant and
equipment
$'000
200
54,460
17,678
147,128
219,466
-
(8,277)
(6,960)
(66,033)
(81,270)
200
46,183
10,718
81,095
138,196
-
-
-
8,465
8,465
-
7,383
7,174
10,194
24,751
-
7,383
7,174
18,659
33,216
Total other movements
As at 30 June 2016
Gross book value
Accumulated depreciation/amortisation
and impairment
-
(7,572)
(7,572)
(3,952)
(3,952)
(19,655)
(19,655)
(31,179)
(31,179)
200
61,843
24,852
165,787
252,682
-
(15,849)
(10,912)
(85,688)
(112,449)
Closing net book balance
200
45,994
13,940
80,099
140,233
As at 1 July 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
Capital asset additions
Estimated expenditure on new or
replacement assets
By purchase - appropriation equity (a)
By purchase - appropriation ordinary
annual services (b)
Total additions
Other movements
Depreciation/amortisation expense
Other
Computer
software and
intangibles
Total
$'000
$'000
Prepared on Australian Accounting Standard basis.
(a) ‘Appropriation equity’ refers to equity injections appropriations provided through Appropriation Bill
(No. 2) 2015–16 and prior Act 2/4/6 appropriations.
(b) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)
2015–16 for depreciation/amortisation expenses, DCBs or other operational expenses.
80
Department of Education and Training Budget Statements
Table 3.2.7: Schedule of budgeted income and expenses administered on
behalf of Government (for the period ended 30 June)
EXPENSES
Suppliers
Subsidies
Personal benefits
Grants
Finance costs
Write-down and impairment of assets and
fair value losses
Total expenses administered on behalf of
Government
LESS:
OWN-SOURCE INCOME
Own-source revenue
Taxation revenue
Other taxes
Total taxation revenue
Non-taxation revenue
Interest
Loan Discount
Other revenue
Total non-taxation revenue
Total own-source revenue administered
on behalf of Government
Gains
Other gains
Total gains administered on behalf of
Government
Total own-sourced income administered
on behalf of Government
Net cost of/(contribution by) services
Surplus/(deficit)
OTHER COMPREHENSIVE INCOME
Items not subject of subsequent
reclassification to net cost of services
Changes in asset revaluation surplus
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
407,058
156,540
3,517,912
24,496,176
800,899
677,139
417,707
122,944
25,519,278
965,356
650,087
396,192
84,246
26,368,549
1,245,121
655,345
393,266
92,428
27,463,424
1,503,011
673,275
393,267
93,307
28,333,208
1,747,009
385,311
1,531,632
1,959,295
2,399,375
2,829,480
29,763,896
29,234,056
30,703,490
32,506,849
34,069,546
6,782
6,999
7,258
7,512
7,775
6,782
6,999
7,258
7,512
7,775
546,776
368,380
770,673
670,382
451,716
320,924
986,025
403,118
33,830
1,154,001
524,189
35,819
1,281,658
949,558
38,061
1,685,829
1,443,022
1,422,973
1,714,009
2,269,277
1,692,611
1,450,021
1,430,231
1,721,521
2,277,052
-
131,400
-
-
-
-
131,400
-
-
-
1,692,611
1,581,421
1,430,231
1,721,521
2,277,052
(28,071,285)
(27,652,635)
(29,273,259)
(30,785,328)
(31,792,494)
(28,071,285)
(27,652,635)
(29,273,259)
(30,785,328)
(31,792,494)
-
-
-
-
-
Total other comprehensive income
-
-
-
-
-
Total comprehensive income/(loss)
(28,071,285)
(27,652,635)
(29,273,259)
(30,785,328)
(31,792,494)
Prepared on Australian Accounting Standard basis.
81
Department of Education and Training Budget Statements
Table 3.2.8: Schedule of budgeted assets and liabilities administered on
behalf of Government (as at 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Other investments
Other financial assets
832
628,699
2,153,101
30,273,989
832
630,451
2,153,175
36,879,505
832
632,207
2,153,700
44,964,110
832
633,948
2,153,775
54,111,929
832
635,669
2,153,775
64,390,260
Total financial assets
33,056,621
39,663,963
47,750,849
56,900,484
67,180,536
Non-financial assets
Other non-financial assets
523
523
523
523
523
Total non-financial assets
523
523
523
523
523
33,057,144
39,664,486
47,751,372
56,901,007
67,181,059
53,085
10,797
4,879
5,885,176
2,203
53,085
10,797
4,879
5,846,310
2,203
53,085
10,797
4,879
5,751,168
2,203
53,085
10,797
4,879
5,645,052
2,203
53,085
10,797
4,879
5,524,411
2,203
Total assets administered on behalf of
Government
LIABILITIES
Payables
Suppliers
Subsidies
Personal benefits
Grants
Other payables
Total payables
5,956,140
5,917,274
5,822,132
5,716,016
5,595,375
Interest bearing liabilities
GST Annotation Loans
6,489
6,489
6,489
6,489
6,489
Total interest bearing liabilities
6,489
6,489
6,489
6,489
6,489
Total liabilities administered on behalf
of Government
Net assets/(liabilities)
5,962,629
5,923,763
5,828,621
5,722,505
5,601,864
27,094,515
33,740,723
41,922,751
51,178,502
61,579,195
Prepared on Australian Accounting Standards basis.
82
Department of Education and Training Budget Statements
Table 3.2.9: Schedule of budgeted administered cash flows
(for the period ended 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
OPERATING ACTIVITIES
Cash received
Interest
Taxes
Other
Total cash received
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
447,033
6,782
333,320
426,539
6,999
94,803
406,674
7,258
59,830
475,256
7,512
61,819
516,353
7,775
64,061
787,135
528,341
473,762
544,587
588,189
Cash used
Grants
Subsidies paid
Personal benefits
Suppliers
24,474,855
159,965
3,542,851
436,205
25,558,144
417,707
51,176
677,139
26,463,691
396,192
4,511
650,087
27,569,540
393,266
4,575
655,345
28,453,849
393,267
4,575
673,275
Total cash used
28,613,876
26,704,166
27,514,481
28,622,726
29,524,966
(27,826,741)
(26,175,825)
(27,040,719)
(28,078,139)
(28,936,777)
Net cash from/(used by) operating
activities
INVESTING ACTIVITIES
Cash received
Repayments of advances and loans
1,406,525
1,342,045
1,352,151
1,590,170
1,745,793
Total cash received
1,406,525
1,342,045
1,352,151
1,590,170
1,745,793
Cash used
Advances and loans made
Investments
Other
7,915,453
4,000
75
9,459,773
74
11,760,834
75
13,547,542
75
14,996,576
74
Total cash used
Net cash from/(used by) investing
activities
FINANCING ACTIVITIES
Cash received
Other
Total cash received
7,919,528
9,459,847
11,760,909
13,547,617
14,996,650
(6,513,003)
(8,117,802)
(10,408,758)
(11,957,447)
(13,250,857)
75
74
75
75
74
75
74
75
75
74
Cash used
Other
-
-
-
-
-
Total cash used
-
-
-
-
-
75
74
75
75
74
(34,339,669)
(34,293,553)
(37,449,402)
(40,035,511)
(42,187,560)
-
5,040
10,254
15,614
21,107
Net cash from/(used by) financing
activities
Net increase/(decrease) in cash held
Cash and cash equivalents at
beginning of reporting period
Cash from Official Public Account for:
- Appropriations
Total cash from Official Public
Account
Cash to Official Public Account for:
- Appropriations
Total cash to Official Public Account
Effect of exchange rate movements on
cash and cash equivalents at the
beginning of reporting period
Cash and cash equivalents at end of
reporting period
36,252,410
36,125,287
39,273,177
42,168,009
44,519,154
36,252,410
36,125,287
39,273,177
42,168,009
44,519,154
(1,907,701)
(1,826,520)
(1,818,415)
(2,127,005)
(2,325,967)
(1,907,701)
(1,826,520)
(1,818,415)
(2,127,005)
(2,325,967)
-
-
-
-
-
5,040
10,254
15,614
21,107
26,734
Prepared on Australian Accounting Standards basis.
83
Department of Education and Training Budget Statements
Table 3.2.10: Administered capital budget statement (for the period ended
30 June)
The Department of Education and Training has no administered capital budget
therefore table 3.2.10 is not presented.
Table 3.2.11: Statement of administered asset movements (Budget year
2015–16)
The Department of Education and Training has no administered asset movements
therefore table 3.2.11 is not presented.
3.2.4 Notes to the financial statements
Accounting Policy
The budgeted financial statements have been prepared in accordance with the
requirements of the Finance Minister’s Orders issued by the Minister for Finance.
The statements have been prepared:

on an accrual accounting basis

in compliance with Australian Accounting Standards and Australian Equivalents
to International Financial Reporting Standards (AEIFRS) and other authoritative
pronouncements of the Australian Accounting Standards Board and the
Consensus Views of the Urgent Issues Group

having regard to Statements of Accounting Concepts.
Departmental appropriation revenue
Revenue from Government represents the purchase of outputs from the department by
the Government. The changes reflected in the ordinary annual appropriations are a
result of those new measures and variations that are explained in Section 1: Agency
overview and resources.
Departmental own source revenue
Revenue from the sale of goods and services is recognised upon the delivery of the
goods or services to the customers.
Departmental gains
Services received free of charge are recognised as gains when a fair value can be
reliably determined and the services would have been purchased if they had not been
donated. Use of those resources is recognised as an expense.
84
Department of Education and Training Budget Statements
Departmental expenses – employee benefits
This item represents payments made and net increases or decreases in entitlements
owed to employees for their services provided in the financial year.
Departmental expenses – suppliers
This item represents payments to suppliers for goods and services.
Departmental expenses – depreciation and amortisation
Property, plant and equipment assets are written-off to their estimated residual value
over their estimated useful lives to the department using the straight-line method of
depreciation. Forward estimates of depreciation expense are made using forecasts of
net capital acquisitions over the forward years.
Departmental assets – financial assets – receivables
Receivables represent amounts owing to the department for goods and services it has
provided to external parties, cash reserves held in the Official Public Account which
are recorded as receivable and prepayments.
Departmental assets – non-financial assets
These items represent future economic benefits that the department will consume in
producing outputs. Following initial recognition at cost, Land and Buildings,
Infrastructure, Plant and Equipment are carried at fair value less accumulated
depreciation. Valuations are conducted with sufficient frequency to ensure that the
carrying amount does not differ materially from the assets’ fair values at reporting
date.
Computer software, disclosed in the Departmental Balance Sheet as Intangibles, are
expensed in the year of acquisition except for purchases of internally developed
software costing more than the appropriate threshold which are capitalised at cost.
Departmental liabilities – provisions – employees
Provision has been made for the department’s liability for employee entitlements
arising from services rendered by employees to balance date. This liability
encompasses wages and salaries that are yet to be paid, annual and long service leave.
No provision is made for sick leave.
Employee entitlements payable are measured as the present value of the estimated
future cash outflows to be made in respect of services provided by employees up to the
reporting date. Liabilities expected to be settled within twelve months are measured at
the nominal amount.
85
Department of Education and Training Budget Statements
Departmental liabilities – payables – suppliers
Suppliers and other payables are recognised at amortised cost. Liabilities are
recognised to the extent that the goods or services have been received (and irrespective
of having been invoiced).
Administered revenue – other taxes
Funds collected through the Tuition Protection Service levy, these funds are paid into
the Overseas Students Tuition Fund Special Account.
Administered revenue – interest
This amount comprises of the fair value accounting treatment relating to the loan
programmes administered by the department which sees indexation applied on the
Higher Education Loan and Trade Support Loan receivable. It also reflects the interest
accrued for the University Superannuation programme.
Administered revenue – loan discount
This amount comprises the unwinding of the concessional loan discount for both the
Higher Education Loan Programme (HELP) and Trade Support Loan Programme.
Administered revenue – Other Sources of non-Taxation Revenue
This amount comprises of the Education Investment Fund Special account funds,
National Youth Affairs Research Scheme special account funds received by the
department, the revenue received from HELP loan fees and the revenue received from
the job ready programme – trades recognition Australia and registrations fees
associated with the Commonwealth Register of Institutions and Courses for Overseas
Students.
Administered expenses – grants
The Grants expenses include funding provided to the schools, vocational education
and training and higher education (multi-jurisdictional) sectors.
Administered expenses – subsidies
Subsidies reflect the expenses related to the Australian apprenticeship incentives
programme and the parliament and civics education rebate programme.
Administered expenses – personal benefits
These include payments made in respect of HELP, trade support loans and Australian
apprenticeship incentives programme. Note the decrease from 2014–15 to 2015–16 is a
result of the Child Care Rebate and Benefit programmes transferring to the
Department of Social Services.
86
Department of Education and Training Budget Statements
Administered expenses – suppliers
These comprise a range of administered programs the most significant being
Australian Apprenticeship Support Network, Australian Migrant English Programme
and Skills for Education and Employment Programme.
Administered expenses – write down and impairment of assets
This relates to loans provided for both the trade support loan programme and to
students under HELP and reflects those amounts not expected to be repaid.
Administered expenses – finance costs
This component reflects the deferral costs on loans provided to students under HELP
and trade support loan programme. Deferral costs arise due to the concessional nature
of the loans.
Administered assets – financial assets
The main component is loans provided to students under HELP. The value of these
loans are based on a ‘fair value’ which accounts for an estimate of those amounts that
are not expected to be repaid as well as the cost of repayments being deferred due to
the income contingent nature of the repayment arrangements.
Administered liabilities
This primarily comprises a grants provision for the Australian Government share of
unfunded superannuation liability in respect of university employees.
87
88
Australian Curriculum,
Assessment and Reporting
Authority
Entity resources and planned
performance
89
AUSTRALIAN CURRICULUM, ASSESSMENT AND
REPORTING AUTHORITY
Section 1: Entity overview and resources ................................................................ 91
1.1
Strategic direction statement .......................................................................... 91
1.2
Entity resource statement ............................................................................... 92
1.3
Budget measures ............................................................................................ 92
Section 2: Outcomes and planned performance ..................................................... 93
2.1
Outcomes and performance information ........................................................ 93
Section 3: Explanatory tables and budgeted financial statements ..................... 102
3.1
Explanatory tables ........................................................................................ 102
3.2
Budgeted financial statements...................................................................... 103
90
ACARA Budget Statements
AUSTRALIAN CURRICULUM, ASSESSMENT AND
REPORTING AUTHORITY
Section 1: Entity overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
The Australian Curriculum, Assessment and Reporting Authority (ACARA) was
established under the Australian Curriculum, Assessment and Reporting Authority Act
2008 of the Parliament of the Commonwealth of Australia. The legislation was
assented to on 8 December 2008.
ACARA is tasked to execute the policy directions that are determined by the Education
Council regarding curriculum, assessment, data collection and reporting at a national
level. ACARA’s mission is to improve the learning of all young Australians through
world-class school curriculum, assessment and reporting.
ACARA is responsible for delivering:

an Australian Curriculum from Foundation to Year 12 in specified learning areas

a national data collection and reporting programme that supports:



analysis, evaluation, research and resource allocation
accountability and reporting on schools and broader national achievement
a national assessment programme aligned to the national curriculum that
measures students’ progress.
ACARA is also responsible for test development and research to support the move of
the National Assessment Programme—Literacy and Numeracy online, as well as
communications, strategy and planning.
91
ACARA Budget Statements
1.2
ENTITY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources will be applied by outcome and by administered and departmental
classification.
Table 1.1: Australian Curriculum, Assessment and Reporting Authority resource
statement — Budget estimates for 2015–16 as at Budget May 2015
Actual
Available
Appropriation
2015–16
Opening balance/Reserves at bank
REVENUE FROM GOVERNMENT
Ordinary annual services (a)
Outcome 1
Total ordinary annual services
Other services (b)
Non-operating
Total other services
Total annual appropriations
Payments from related entities (c)
Amounts from the portfolio department
Amounts from other entities
Total
Total funds from Government
FUNDS FROM OTHER SOURCES
Interest
Other
Total
Total net resourcing for entity
$'000
Estimate of
prior year
amounts
available in
2015–16
$'000
-
Proposed at Total 2015–16
2015–16
estimate
Budget
$'000
$'000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12,800
-
12,800
-
-
-
12,800
12,800
-
-
12,800
12,800
-
-
220
12,200
220
12,200
-
-
12,420
12,420
-
-
25,220
25,220
(a) Appropriation Bill (No. 1) 2015–16.
(b) Appropriation Bill (No. 2) 2015–16.
(c) Funding provided by Department of Education and Training.
Notes:
All figures are GST exclusive.
CRF - Consolidated Revenue Fund.
ACARA is not directly appropriated as it is a Corporate Commonwealth body. Appropriations are made
to the Department of Education and Training which are then paid to ACARA and are considered
'departmental" for all purposes.
1.3
BUDGET MEASURES
Budget measures in Part 1 relating to Australian Curriculum, Assessment and
Reporting Authority are detailed in Budget Paper No. 2 and are summarised below.
Table 1.2: Entity 2015–16 Budget measures
ACARA does not have any new measures since the 2014–15 Budget. For this reason
table 1.2 is not presented.
92
ACARA Budget Statements
Section 2: Outcomes and planned performance
2.1
OUTCOMES AND PERFORMANCE INFORMATION
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programmes are the
primary vehicle by which government entities achieve the intended results of their
outcome statements. Entities are required to identify the programmes which contribute
to government outcomes over the Budget and forward years.
Each outcome is described below together with its related programmes, specifying the
performance indicators and targets used to assess and monitor the performance of the
Australian Curriculum, Assessment and Reporting Authority in achieving government
outcomes.
Outcome 1: Improved quality and consistency of school education in Australia through
national curriculum, national assessment, data collection and performance reporting
system.
Outcome 1 strategy
ACARA will continue to work collaboratively with a wide range of stakeholders
including teachers, principals, government, state and territory education authorities,
professional education associations, business and industry, community groups and the
broader public.
Curriculum

To finalise the Foundation to Year 10 (F-10) Australian Curriculum, comprising
content descriptions, achievement standards and annotated work samples for all
learning areas listed in the Melbourne Declaration on Educational Goals for Young
Australians with due emphasis to general capabilities and cross-curricular
priorities.

To ensure that the Australian Curriculum caters for and engages all learners,
including students with disabilities and those for whom English is an additional
language/dialect.

To implement a rigorous approach to benchmarking the Australian Curriculum
with curriculums of leading nations.

To enhance public access to and understanding and awareness of the Australian
Curriculum.

To implement decisions made by Education Council to enhance the Australian
Curriculum following the Review of the Australian Curriculum.
93
ACARA Budget Statements
Reporting and assessment

To provide a richer array of information on Australian schools and on student
achievement, progress and participation.

To pilot a more interactive and timely format for the presentation of the National
Report on Schooling in Australia.

To extend and improve ways of enabling schools to benchmark their performance
against other schools with similar characteristics and similar student backgrounds
and academic starting points.

To ensure that national assessments enable accurate monitoring of student and
school performance and progress while promoting good pedagogical practices.

To align national assessments with the Australian Curriculum and ensure that
they validly, reliably and fairly capture achievement across a range of learning
areas and valued outcomes, particularly those capabilities of special importance in
the 21st century.
Supporting improvement

To establish productive partnerships with jurisdictions, agencies and professional
associations to provide tools and resources to support schools, teachers and the
public in understanding, implementing and interacting with the Australian
Curriculum.

To coordinate a cooperative, national approach to supporting teachers in using
assessments and standards to obtain feedback to improve teaching and learning.

To provide analysis and reports on performance to facilitate more informed
curriculum and teaching decision making.
Building capacity

To align governance and operations within ACARA and create a high performance
organisation that can fully meet stakeholder expectations.

To strengthen connections with ACARA’s stakeholders and strategic partners.

To leverage international knowledge and practice in curriculum, assessment and
reporting to ensure leading edge practice.

To work with the Australian Institute for Teaching and School Leadership,
Education Services Australia and jurisdictions in developing and delivering
professional learning and training in curriculum and assessment across all sectors
of education.
94
ACARA Budget Statements
Outcome expense statement
Table 2.1 provides an overview of the total expenses for outcome 1, by programme.
Table 2.1: Budgeted expenses for Outcome 1
Outcome 1: Improved quality and consistency of school
education in Australia through a national curriculum, national
assessment, data collection and performance reporting system.
Programme 1.1: National Curriculum
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Payment from related entities
Revenues from industry sources
Revenues from other independent sources
Total for Programme 1.1
Programme 1.2: National Data Collection and Reporting
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Payment from related entities
Revenues from industry sources
Revenues from other independent sources
Total for Programme 1.2
Programme 1.3: National Assessment
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Payment from related entities
Revenues from industry sources
Revenues from other independent sources
Total for Programme 1.3
Outcome 1 totals by resource type
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Payment from related entities
Revenues from industry sources
Revenues from other independent sources
Total expenses for Outcome 1
Average staffing level (number)
95
2014–15
Estimated actual
expenses
$'000
2015–16
Estimated
expenses
$'000
6,100
3,735
5,421
3,625
11,521
7,360
1,390
1,143
1,236
1,109
2,626
2,252
6,763
7,922
6,011
7,686
12,774
15,608
14,253
12,800
12,668
12,420
26,921
25,220
2014–15
95
2015–16
93
ACARA Budget Statements
Contributions to Outcome 1
Programme 1.1: National Curriculum
Programme objectives

To finalise the F-10 Australian Curriculum, comprising content descriptions,
achievement standards and annotated work samples for all learning areas listed in
the Melbourne Declaration on Educational Goals for Young Australians with due
emphasis to general capabilities and cross-curricular priorities.

To ensure that the Australian Curriculum caters for and engages all learners,
including students with disabilities and those for whom English is an additional
language/dialect.

To develop and implement a rigorous approach to benchmarking the Australian
Curriculum with curriculums of leading nations.

To enhance public access to, and understanding and awareness of, the Australian
Curriculum.

To complete the fourth round of alternative curriculum recognition.

To undertake approved actions arising from the 2014 monitoring of the Australian
Curriculum, complete the 2015 monitoring process and initiate the 2016 process.
96
ACARA Budget Statements
Programme expenses
ACARA has not identified any significant trends, changes or variances in programme
expenses over the forward years.
Programme expenses table
1.1.1 - National Curriculum
Annual departmental expenses:
Payment related entities
Revenues from Independent Resource
Total component expenses
1.1.2 - National Data Collection and Reporting
Annual departmental expenses:
Payment related entities
Revenues from Independent Resource
Total component expenses
1.1.3 - National Assessment
Annual departmental expenses:
Payment related entities
Revenues from Independent Resource
Total component expenses
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
6,100
5,421
11,521
3,735
3,625
7,360
-
-
-
1,390
1,236
2,626
1,143
1,109
2,252
-
-
-
6,763
7,922
-
-
-
6,011
12,774
7,686
15,608
-
-
-
Total programme expenses
26,921
25,220
Note: The current ACARA funding agreement ends with the 2015–16 financial year. Funding for the next four
year work plan will be considered by COAG Education Council.
97
ACARA Budget Statements
Programme 1.1 deliverables

Education Council directives regarding the Australian Curriculum are
implemented by resolving the overcrowded curriculum, rebalancing the
curriculum, improving accessibility for all students and improving parental
engagement around the curriculum.

The Aboriginal languages and Torres Strait Islander languages framework is
developed.

The remaining languages curriculums are developed (Auslan, Turkish and Hindi,
as well as a framework for classical languages, followed by curriculums for
Classical Greek and Latin).

Student work sample portfolios are published for arts, languages, health and
physical education, technologies, civics and citizenship, economics and business,
geography and work studies Years 9–10.
Programme 1.1 key performance indicators

Education Council approves ACARA’s proposed amendments to the Australian
Curriculum following on from the Review of the Australian Curriculum.

Education Council approves the following for publication as endorsed curriculum:
arts, languages (Chinese, French, Indonesian, Italian, Arabic, German, Japanese,
Korean, Modern Greek, Vietnamese and Spanish), health and physical education,
technologies, civics and citizenship, and economics and business, as well as work
studies (Years 9 and 10).

Education Council approves the Aboriginal languages and Torres Strait Islander
languages framework.

ACARA successfully delivers against its work plan for 2015–16, as agreed by
Education Council.
98
ACARA Budget Statements
Programme 1.2: National Data Collection and Reporting
Programme objectives

To provide a richer more user-friendly array of information on Australian schools
and schooling, and on student achievement, progress and participation.

To extend and improve ways of enabling schools to benchmark their performance
against other schools with similar characteristics and similar student backgrounds
and academic starting points.

To monitor and, where necessary, review the existing national key performance
measures for schools in the light of the national goals outlined in the Melbourne
Declaration and current legislative accountability requirements for school
authorities.
Programme expenses
ACARA has not identified any significant trends, changes or variances in programme
expenses over the forward years.
Programme 1.2 deliverables

Addition of updated assessment and other school-related data on the My School
website providing more information to the public about Australia’s schools,
including further trend and comparative information.

To pilot a more interactive and timely format for the presentation of the National
Report on Schooling in Australia.

Update and modify the Measurement Framework for Schooling in Australia where
appropriate.

National Report on Schooling in Australia 2013 published and the National Report
on Schooling in Australia 2014 published where data are available.
Programme 1.2 key performance indicators

The data reported in the National Report on Schooling in Australia and on the
My School website are materially accurate.

An additional year’s data on the My School website is provided, including any
specific new measures approved by Ministers (e.g. attendance data broken down
by Indigenous status).
99
ACARA Budget Statements
Programme 1.3: National Assessment
Programme objectives

To ensure that national assessments enable accurate monitoring of student and
school performance and progress while promoting good pedagogical practices.

To deliver national assessments that provide accurate and nationally comparable
measurement of student performance against common scales in each domain.

To provide accurate and constructive information to inform planning for improved
student learning in key curriculum areas.

To ensure that national assessments validly, reliably and fairly capture
achievement across a wide range of learning areas and valued outcomes,
particularly those capabilities of special importance in the 21st century.

To align national assessments for 2016 onwards with the Australian Curriculum.

To ensure that assessment techniques are innovative and model good assessment
practice.
Programme expenses
ACARA may have increased programme expenses over forward years with the dual
modes of testing, pen and paper and NAPLAN online tests.
Programme 1.3 deliverables

Delivery and analysis of National Assessment Programme – Literacy and
Numeracy (NAPLAN) tests.

Delivery and analysis of National Assessment Programme – Sample Assessment
(NAP – Sample) triennial cycle tests.

Delivery of research and test items to prepare for the delivery of NAPLAN online
from 2017.

Revised national assessment frameworks are aligned with the Australian
Curriculum to guide NAPLAN and NAP – Sample test development for 2017 and
beyond.

Publication of an annual Test Incidents Report.

Publication of NAP – Sample Public Report, NAPLAN summary information and
NAPLAN National Report 2015.
Programme 1.3 key performance indicators

NAPLAN and NAP– Sample assessments are conducted according to protocols
and risk management strategies. Any incidents are managed as per the protocols
in an efficient and effective manner.

NAPLAN and NAP—Sample assessment results are analysed accurately and
meaningfully for reporting against common scales.
100
ACARA Budget Statements

Strong awareness of the National Protocols for Test Administration within schools,
leading to greater consistency in national test administration and minimal test
incidents.

NAPLAN online test items are trialled according to protocols and risk
management strategies.
101
ACARA Budget Statements
Section 3: Explanatory tables and budgeted financial
statements
Section 3 presents explanatory tables and budgeted financial statements which provide
a comprehensive snapshot of entity finances for the 2015–16 budget year. It explains
how budget plans are incorporated into the financial statements and provides further
details of the reconciliation between appropriations and programme expenses,
movements in administered funds, special accounts and government indigenous
expenditure.
3.1
EXPLANATORY TABLES
3.1.1 Movement of administered funds between years
Table 3.1.1: Movement of administered funds between years
ACARA has no administered funds therefore table 3.1.1 is not presented.
3.1.2 Special accounts
Table 3.1.2: Estimates of special account flows and balances
ACARA has no special accounts therefore table 3.1.2 is not presented.
3.1.3 Australian Government Indigenous expenditure
Table 3.1.3: Australian Government Indigenous expenditure (AGIE)
The 2014–15 Australian Government Indigenous Statement is not applicable because
ACARA has no Indigenous-specific expenses therefore table 3.1.3 is not presented.
102
ACARA Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in entity resourcing and financial statements
There are no differences in agency resourcing and the financial statements.
3.2.2 Analysis of budgeted financial statements
The Commonwealth has allocated funding for ACARA of up to $54.6 million from
2012–13 to 2015–16.
In October 2011 Ministers agreed to ACARA’s total budget of $109.2 million over four
years, 2012–13 to 2015–16 being equally shared between the Commonwealth and the
states and territories based on the applicable ministerial council funding formula.
103
ACARA Budget Statements
3.2.3 Budgeted financial statements tables
Table 3.2.1: Comprehensive income statement (showing net cost of
services) for the period ended 30 June
2014–15
Estimated
actual
$'000
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Total expenses
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services
Fees and fines
Interest
Other
Total own-source revenue
Gains
Sale of assets
Other (a)
Total gains
Total own-source income
Net cost of/(contribution by) services
Revenue from Government
Surplus/(deficit) attributable to the Australian
Government
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation surplus
Total other comprehensive income
Total comprehensive income/(loss)
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
14,425
11,746
750
26,921
14,874
9,616
730
25,220
-
-
-
220
26,701
26,921
220
25,000
25,220
-
-
-
26,921
-
25,220
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total comprehensive income/(loss) attributable to
the Australian Government
Note: Impact of net cash appropriation arrangements
2014–15
$'000
Total comprehensive income/(loss) excluding
depreciation/amortisation expenses previously
funded through revenue appropriations.
-
2015–16
$'000
-
2016–17
$'000
-
2017–18
$'000
-
2018–19
$'000
-
less heritage and cultural depreciation expenses
previously funded through revenue appropriations (b)
Total comprehensive income/(loss) - as per the
Statement of comprehensive income
-
(a)
(b)
-
-
-
-
Includes funding provided by the Department of Education and Training.
From 2009–10, the Government replaced Bill 1 revenue appropriations for the heritage and cultural
depreciation expenses of designated Collection Institutions, with a separate capital budget (the
Collection Development Acquisition Budget, or CDAB) provided through Bill 2 equity appropriations.
For information regarding CDABs, please refer to Table 3.2.5 Departmental Capital Budget Statement.
Notes:
The current ACARA funding agreement ends with the 2015–16 financial year. Funding for the next four
year work plan will be considered by COAG Education Council.
Prepared on Australian Accounting Standards basis.
104
ACARA Budget Statements
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
Non-financial assets
Land and buildings
Property, plant and equipment
Other non-financial assets
Total non-financial assets
2014–15
Estimated
actual
$'000
2015–16
Budget
4,463
175
3,847
145
4,638
1,076
130
$'000
3,992
596
90
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
-
-
-
-
-
-
-
-
-
1,206
686
-
-
-
5,844
4,678
-
-
-
-
-
-
-
-
-
-
-
-
Assets held for sale
Total assets
LIABILITIES
Payables
Suppliers
Other payables
Total payables
Provisions
Employee provisions
Other provisions
Total provisions
1,887
510
2,397
1,020
1,251
40
1,291
960
1,020
960
-
-
-
Total liabilities
3,417
2,251
-
-
-
Net assets
2,427
2,427
-
-
-
Liabilities included in disposal groups
held for sale
EQUITY*
Parent entity interest
Contributed equity
Reserves
Retained surplus (accumulated deficit)
2,427
2,427
Total parent entity interest
2,427
2,427
Attributed to non-controlling interest
Contributed equity
Reserves
Retained surplus (accumulated deficit)
Total non-controlling interest
Total Equity
2,427
2,427
*
Equity is the residual interest in assets after the deduction of liabilities.
Notes:
The current ACARA funding agreement ends with the 2015–16 financial year. Funding for the next four
year work plan will be considered by COAG Education Council.
Prepared on Australian Accounting Standards basis.
105
ACARA Budget Statements
Table 3.2.3: Departmental statement of changes in equity — summary of
movement (Budget year 2015–16)
Retained
earnings
$'000
Opening balance as at 1 July 2015
Balance carried forward from previous period
Adjustment for changes in accounting
policies
2,427
Asset
revaluation
reserve
$'000
-
Other Contributed
reserves
equity/
capital
$'000
$'000
-
-
Total
equity
$'000
2,427
-
Adjusted opening balance
-
-
-
Transactions with owners
Contributions by owners
Equity Injection
Sub-total transactions with owners
Estimated closing balance as at
2,427
30 June 2016
Less: non-controlling interests*
Closing balance attributable to the
2,427
Australian Government
*
This disclosure is not required if an entity does not have non-controlling interests.
Prepared on Australian Accounting Standards basis.
106
-
-
-
-
-
2,427
-
-
2,427
ACARA Budget Statements
Table 3.2.4: Budgeted departmental statement of cash flows (for the
period ended 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
Receipts from Government
Sale of goods and rendering of services
Interest
Other
26,701
220
-
25,000
220
-
-
-
-
Total cash received
26,921
25,220
-
-
-
Cash used
Employees
Suppliers
Other
14,425
20,430
-
14,874
10,712
-
-
-
-
Total cash used
34,855
25,586
-
-
-
-
-
-
Net cash from/(used by) operating
activities
INVESTING ACTIVITIES
Cash received
Investments
Other
Total cash received
(7,934)
(366)
-
-
-
-
-
-
-
-
-
-
Cash used
Purchase of property, plant and
equipment
Other
250
250
-
-
-
-
-
-
-
-
Total cash used
250
250
-
-
-
Net cash from/(used by) investing
(250)
(250)
activities
FINANCING ACTIVITIES
Cash received
Contributed equity
Other
Total cash received
Cash used
Total cash used
Net cash from/(used by) financing
activities
Net increase/(decrease) in cash held
(8,184)
(616)
Cash and cash equivalents at the
12,647
4,463
beginning of the reporting period
Cash and cash equivalents at the end
4,463
3,847
of the reporting period
Notes:
The current ACARA funding agreement ends with the 2015–16 financial year. Funding for the next four
year work plan will be considered by COAG Education Council.
Prepared on Australian Accounting Standards basis.
107
ACARA Budget Statements
Table 3.2.5: Departmental capital budget statement (for the period ended
30 June)
ACARA does not have a departmental capital budget therefore table 3.2.5 is not
presented.
Table 3.2.6: Statement of asset movements (Budget year 2015–16)
Other property,
plant and
equipment
$'000
As at 1 July 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
Capital asset additions
Estimated expenditure on new or
replacement assets
By purchase - other
Total additions
Other
Total
$'000
$'000
4,997
591
-
5,588
(3,921)
(591)
-
(4,512)
1,076
-
-
1,076
250
-
-
250
250
-
-
250
(730)
-
-
(730)
(730)
-
-
(730)
5,247
591
-
5,838
(4,651)
(591)
-
(5,242)
Other movements
Assets held for sale or in a disposal group
held for sale
Depreciation/amortisation expense
Total other movements
As at 30 June 2016
Gross book value
Accumulated depreciation/amortisation
and impairment
Computer
software and
intangibles
$'000
Closing net book balance
596
-
-
596
Prepared on Australian Accounting Standards basis.
Table 3.2.7: Schedule of budgeted income and expenses administered on
behalf of Government (for the period ended 30 June)
ACARA has no income and expenses administered on behalf of Government therefore
table 3.2.7 is not presented.
Table 3.2.8: Schedule of budgeted assets and liabilities administered on
behalf of Government (as at 30 June)
ACARA has no assets and liabilities administered on behalf of Government therefore
table 3.2.8 is not presented.
Table 3.2.9: Schedule of budgeted administered cash flows
(for the period ended 30 June)
ACARA has no administered cash flows therefore table 3.2.9 is not presented.
108
ACARA Budget Statements
Table 3.2.10: Administered capital budget statement (for the period ended
30 June)
ACARA has no administered capital budget therefore table 3.2.10 is not presented.
Table 3.2.11: Statement of administered asset movements (Budget year
2015–16)
ACARA has no administered asset movements therefore table 3.2.11 is not presented.
3.2.4 Notes to the financial statements
The budgeted financial statements for ACARA are prepared for the current year and
the 2015–16 budget year. The accounting policies used in preparing these financial
statements are consistent with those used in ACARA’s 2013–14 Annual Report.
109
110
Australian Institute of
Aboriginal and Torres Strait
Islander Studies
Entity resources and planned
performance
111
AUSTRALIAN INSTITUTE OF ABORIGINAL AND TORRES
STRAIT ISLANDER STUDIES
Section 1: Entity overview and resources .............................................................. 113
1.1
Strategic direction statement ........................................................................ 113
1.2
Entity resource statement ............................................................................. 115
1.3
Budget measures .......................................................................................... 116
Section 2: Outcomes and planned performance ................................................... 117
2.1
Outcomes and performance information ...................................................... 117
Section 3: Explanatory tables and budgeted financial statements ..................... 123
3.1
Explanatory tables ........................................................................................ 123
3.2
Budgeted financial statements...................................................................... 124
112
AIATSIS Budget Statements
AUSTRALIAN INSTITUTE OF ABORIGINAL AND TORRES
STRAIT ISLANDER STUDIES
Section 1: Entity overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
The Australian Institute of Aboriginal and Torres Strait Islander Studies (AIATSIS) is
an independent statutory authority created by the Australian Institute of Aboriginal and
Torres Strait Islander Studies Act 1989 (the Act). The purpose of AIATSIS is to build
pathways for the knowledge of Aboriginal and Torres Strait Islander peoples to grow
and be shared. This purpose contributes to a broader vision for Indigenous peoples’
knowledge and culture to be recognised, respected and valued.
AIATSIS’ Statement of Strategic Intent for the period 2013–2016 sets out the following
goals:
1.
Promote Australia’s Aboriginal and Torres Strait Islander peoples, their heritage
and culture
2.
Focus outward and engage collaboratively
3.
Provide the foundation for research excellence in Australian Indigenous studies
4.
Ensure our collections are safe, secure, valued and growing
5.
Celebrate 50 years of leadership and excellence in Indigenous studies (2014)
6.
Create an effective organisation where people want to work.
Priorities for AIATSIS in the coming year include:
Securing AIATSIS’ collection: The AIATSIS collection contains over six million items
including film, photos, art and artefacts and manuscripts, and has been independently
assessed as the most significant collection of Aboriginal and Torres Strait Islander
materials in the world. It has, for example, language materials listed on the United
Nations Educational, Scientific and Cultural Organization (UNESCO) Memory of the
World Australian Register. The Government has announced the investment of an
additional $5 million in 2015–16 to strengthen AIATSIS’ capacity to preserve, manage
and share its collection.
Establishing the AIATSIS Foundation: AIATSIS has established a not-for-profit
foundation to raise funds and broker partnerships that will support its mission. Once
established, the foundation will also look to supporting opportunities for greater
public engagement with the AIATSIS collection and AIATSIS experts. In the longer
term it will also seek funding and other partnerships for the establishment of an iconic
Canberra precinct, modelled after the National Museum of the American Indian that is
symbolically located at the head of the National Mall in Washington DC.
113
AIATSIS Budget Statements
Pursuing an externally funded strategic research agenda: AIATSIS is building
partnerships and seeking alternative sources of funding to better position its
leadership role in Indigenous Studies for which it is uniquely positioned. The research
programme will continue to develop through 2015–16 and will be focused around our
deep expertise in matters such as cultural competency and ethics, relationship with
community, methodologies, native title and collections-based research. The Before It’s
Too Late Mk3 announced in late 2014, will also be scoped and clarify for Government
the status of materials not already in the collection that will need to be secured before
they disintegrate. Possible mechanisms to undertake this large task will include, for
example, linking with and energising other tertiary institutions to join in the task in
their teaching and research programmes.
Transformative planning and reform: AIATSIS is working with its stakeholders and
the Department of Education and Training to consider scenarios and plan for how
AIATSIS is best positioned and resourced to contribute to knowledge and
understanding of Indigenous Australia over the medium and longer term (up to fifty
years). This includes considering AIATSIS’ role in leading practice and undertaking
research, publication and supporting the development of Indigenous scholars and
researchers, as well as preserving and making accessible the collection. Out of this
process AIATSIS’ next four year corporate plan will be developed to replace the
current plan which expires at the end of this financial year.
Building on AIATSIS’ refreshed online presence: In 2014–15, AIATSIS rebuilt and
relaunched its website. As well as bringing the site in line with the latest functionality
including integration with social media, it has been designed to grow into Australia's
authoritative gateway to Indigenous Australia, as well as provide access to AIATSIS’
collections, research outputs and corporate information. Maintaining and building
from this platform is a key opportunity.
Refreshing the publishing business model: Aboriginal Studies Press exists to respond
to market failure in the publication of academic and general texts on Indigenous
Australia, particularly by Indigenous authors and/or through culturally proficient
practice. However, opportunities to expand its impact and commercial outcomes,
including through international markets, have emerged and will be pursued through
2015–16.
AIATSIS’ key challenges in 2015–16 include:
Change management: AIATSIS’ engagement in transformative planning and the
associated restructuring and reform requires an effective change management strategy.
Communication and engagement with institutional and community stakeholders will
be critical in adjusting and meeting expectations.
Technological change: AIATSIS operates in the rapidly changing world of knowledge
management and must be at the forefront of technological change notwithstanding
constrained resources. 2015–16 will see the implementation of a world class digital
asset and electronic document management system.
114
AIATSIS Budget Statements
1.2
ENTITY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources will be applied by outcome and by administered and departmental
classification.
Table 1.1: Australian Institute of Aboriginal and Torres Strait Islander Studies
resource statement—Budget estimates for 2015–16 as at Budget May 2015
Actual
Available
Appropriation
2014–15
Opening balance/Reserves at bank
REVENUE FROM GOVERNMENT
Ordinary annual services (a)
Outcome 1
17,203
Estimate of
prior year
amounts
available in
2015–16
$'000
17,533
13,317
-
14,935
14,935
Total ordinary annual services
Other services (b)
Non-operating
13,317
-
14,935
14,935
75
-
74
74
$'000
Total other services
Proposed at
2015–16
Budget
Total
2015–16
estimate
$'000
-
$'000
17,533
75
-
74
74
Total annual appropriations
13,392
-
15,009
15,009
Total net resourcing for entity
30,595
17,533
15,009
32,542
(a) Appropriation Bill (No. 1) 2015–16.
(b) Appropriation Bill (No. 2) 2015–16.
Notes:
All figures are GST exclusive.
AIATSIS is not directly appropriated as it is a corporate Commonwealth entity.
Appropriations are made to the Department of Education and Training, which are then paid to AIATSIS
and are considered 'departmental' for all purposes.
115
AIATSIS Budget Statements
1.3
BUDGET MEASURES
Budget measures in Part 1 relating to the Australian Institute of Aboriginal and Torres
Strait Islander Studies are detailed in Budget Paper No. 2 and are summarised below.
Table 1.2: Entity 2015–16 Budget measures
Part 1: Measures announced since the 2014–15 Mid-Year Economic and Fiscal
Outlook (MYEFO)
Programme
2014–15 2015–16 2016–17 2017–18 2018–19
$'000
$'000
$'000
$'000
$'000
Expense measures
Australian Institute of Aboriginal and
Torres Strait Islander Studies –
preservation of Indigenous cultural
resources
Departmental expenses
1
-
5,000
-
-
-
Total
Total expense measures
Departmental
-
5,000
-
-
-
-
5,000
-
-
-
Total
Prepared on a Government Finance Statistics (fiscal) basis.
-
5,000
-
-
-
116
AIATSIS Budget Statements
Section 2: Outcomes and planned performance
2.1
OUTCOMES AND PERFORMANCE INFORMATION
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programmes are the
primary vehicle by which Government entities achieve the intended results of their
outcome statements. Entities are required to identify the programmes which contribute
to Government outcomes over the Budget and forward years.
Each outcome is described below together with its related programmes, specifying the
performance indicators and targets used to assess and monitor the performance of
AIATSIS in achieving Government outcomes.
Outcome 1: Further understanding of Australian Indigenous cultures, past and present
through undertaking and publishing research, and providing access to print and
audiovisual collections.
Outcome 1 strategy
AIATSIS is an independent statutory authority created by the Australian Institute of
Aboriginal and Torres Strait Islander Studies Act 1989 (the Act). It is governed by its own
Council, which has a majority of Aboriginal and Torres Strait Islander members.
The Statement of Strategic Intent 2013–2016 provides direction for the allocation of
resources across the broad functions of AIATSIS as prescribed under Section 5 of the
Act, which requires AIATSIS to:

undertake and promote Aboriginal and Torres Strait Islander studies

publish the results of Aboriginal and Torres Strait Islander studies and to assist in
the publication of the results of such studies

conduct research in fields relevant to Aboriginal and Torres Strait Islander studies
and to encourage other persons or bodies to conduct such research

assist in training persons, particularly Aboriginal and Torres Strait Islander
persons, as research workers in fields relevant to Aboriginal and Torres Strait
Islander studies

establish, maintain and provide appropriate access to a cultural resource collection
consisting of materials relating to Aboriginal and Torres Strait Islander studies

encourage understanding, in the general community, of Aboriginal and Torres
Strait Islander societies

carry out such other functions as are conferred on AIATSIS by the Act

do anything else that is incidental or conducive to the performance of any of the
preceding functions.
117
AIATSIS Budget Statements
Outcome expense statement
Table 2.1 provides an overview of the total expenses for Outcome 1 by programme.
Table 2.1: Budgeted expenses for Outcome 1
Outcome 1: Further understanding of Australian Indigenous
cultures, past and present through undertaking and publishing
research, and providing access to print and audiovisual
collections.
Programme 1: AIATSIS: Research and Collections
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Revenues from other independent sources
Total for Programme 1
Total expenses for Outcome 1
Average staffing level (number)
118
2014–15
Estimated actual
expenses
$'000
2015–16
Estimated
expenses
$'000
13,295
5,863
14,935
5,863
19,158
20,798
19,158
20,798
2014–15
134
2015–16
143
AIATSIS Budget Statements
Programme 1: AIATSIS Research, Collections, Publications and
Communication
Programme objective
AIATSIS contributes to Outcome 1 by pursuing the following goals established in the
Statement of Strategic Intent 2013–2016.
During 2015–16,
Goal 1: Promote Australia’s Aboriginal and Torres Strait Islander peoples, their
heritage and culture
AIATSIS provides general and specific information about Aboriginal and Torres Strait
Islander peoples to local and global audiences. AIATSIS continually looks for
opportunities to advance this goal through engaging with complementary agendas
and activities, including through provision of public policy advice to Parliament,
collaboration on exhibitions, engaging with international parties both here and abroad,
and joint academic arrangements. For example, AIATSIS is soon to sign off on an
international Statement of Cooperation with the National Museum of the American
Indian.
Goal 2: Focus outward and engage collaboratively
AIATSIS has rebuilt its multimedia presence, enhancing its reach to Australians
everywhere and to the world. AIATSIS will engage in strategies to increase external
engagement and maintain and build on its renewed online platform. The AIATSIS
catalogue facility, called Mura, allows the public to review its holdings, wherever they
are. AIATSIS works to enhance accessibility and discoverability.
Many communities express the desire for visits from AIATSIS and for the return of
collection materials related to them. AIATSIS is considering how to develop its future
programme of work having regard to increasing community engagement and the
desire to develop a new museological approach. In the longer term, it is anticipated
that a greater emphasis on repatriation of materials, where possible, will contribute to
ethical collections practices and increased employment and study opportunities in
communities with a concomitant growth of local and regional cultural centres.
AIATSIS also conducts seminars, conferences and public events that promote
Indigenous peoples’ knowledge and cultures and activities are communicated through
a range of media. Aboriginal Studies Press, AIATSIS’ publishing arm, publishes
outstanding writing especially by Indigenous authors. AIATSIS also publishes free
downloadable resources, including material for schools, and produces information to
inform research, policy and practice.
Goal 3: Provide the foundation for research in Australian Indigenous studies
After 50 strong years of research and of successfully encouraging the development of
research in tertiary institutions and communities, AIATSIS is now reviewing and
repositioning its research leadership to where it will be most effective and break new
119
AIATSIS Budget Statements
horizons. AIATSIS has committed to pursuing a strategic research agenda based on its
unique strengths, but funded through grants and on a fee-for-service basis. This
agenda will continue to be defined and negotiated in 2015–16. AIATSIS leadership in
ethical research, its invaluable archival collections, cultural competence and human
capital is at the heart of this transformation. As a publicly funded research agency
dedicated to Aboriginal and Torres Strait Islander studies, AIATSIS promotes and
participates in critical Indigenous research networks. AIATSIS research staff undertake
rigorous community-based research projects, participate in policy debate and provide
advice directly to government. AIATSIS will seek to secure competitive research grants
and consultancies to develop its leadership and ability to provide sound and
innovative advice.
AIATSIS’ archival collections provide invaluable and essential research infrastructure
nationally and internationally for both community and academics. AIATSIS aims to
promote itself as the place to conduct research and deposit research materials. Within
available resources, AIATSIS aims to provide extensive and culturally appropriate
support to Aboriginal and Torres Strait Islander individuals and communities
conducting research about their families, communities, languages and cultures,
including family history research training and services. Improving cultural knowledge
and practice will lead to improved wellbeing for Aboriginal and Torres Strait Islander
peoples.
Goal 4: Ensure collections are safe, secure and valued
AIATSIS aims to ensure materials in the AIATSIS collections are stored and managed
in accordance with the highest standards in archival management, including concerted
effort to preserve, conserve and make accessible at risk materials through digitisation.
A recent technical assessment has provided expert advice on the structure, scale and
resources required to achieve this, and it identified urgent and potential catastrophic
risks to elements of the collection. Through the additional resources provided through
the Budget and reprioritisation of existing resources, AIATSIS will start to implement
the strategies and approach recommended in this assessment. Access to AIATSIS
collections is provided in a culturally appropriate manner.
Goal 5: Celebrate 50 years of leadership and excellence in Indigenous studies
Celebration of AIATSIS’ 50th anniversary (in 2014) was completed during 2014–15.
Planning for the next fifty years will be progressed through transformative planning
and reform.
Goal 6: Foster an effective organisation where people want to work
The AIATSIS executive actively engages with all staff through structured
arrangements to maximise both the effectiveness of the organisation and people’s
commitment to it. The AIATSIS staff survey shows very high levels of staff
engagement.
AIATSIS upholds the highest standards of governance through the AIATSIS Council
and advisory committees.
120
AIATSIS Budget Statements
Programme expenses
Programme expenses are based on appropriation plus anticipated external revenue.
Programme expenses 1.1 AIATSIS Research, Collections, Publications
and Communication
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
Annual departmental expenses:
Departmental item
Total programme expenses
19,158
20,798
15,796
15,841
15,955
19,158
20,798
15,796
15,841
15,955
Programme 1 deliverables
AIATSIS delivers products and services relevant to its functions and purpose,
including:

quality online information and resources about Aboriginal and Torres Strait
Islander peoples

quality publications for trade and a variety of open access formats

preservation of and making discoverable the collection of cultural materials
relevant to Aboriginal and Torres Strait Islander peoples

access to the collections, including advice and support for clients and copies of
materials requested

guidelines for research, collections management and publishing with Aboriginal
and Torres Strait Islander peoples

research projects on matters of importance to Aboriginal and Torres Strait Islander
peoples

research and consultancy services

advice on policy and practice in areas of interest to Aboriginal and Torres Strait
Islander peoples

accession of new material into the collections as resources allow

limited range of public programmes and events as funding allows

corporate support systems and governance

efficient and innovative learning and development programmes for staff.
Programme 1 key performance indicators
The key performance indicators are:

reach and impact of our communication activity
121
AIATSIS Budget Statements

quality, innovation and impact demonstrated through AIATSIS’ own research,
publications and collections practice

reach and take-up of standards, guidance and advice on best practice

rates at which material is offered to and accepted into the collection, preserved and
made discoverable and accessible

performance against measures of staff engagement.
122
AIATSIS Budget Statements
Section 3: Explanatory tables and budgeted financial
statements
Section 3 presents explanatory tables and budgeted financial statements which provide
a comprehensive snapshot of entity finances for the 2015–16 budget year. It explains
how budget plans are incorporated into the financial statements and provides further
details of the reconciliation between appropriations and programme expenses,
movements in administered funds, special accounts and government indigenous
expenditure.
3.1
EXPLANATORY TABLES
3.1.1 Movement of administered funds between years
AIATSIS has no administered funds; therefore Table 3.1.1 is not presented.
3.1.2 Special accounts
AIATSIS has no special accounts; therefore Table 3.1.2 is not presented.
3.1.3 Australian Government Indigenous expenditure
All AIATSIS’ expenditure is in support of Indigenous activities.
Table 3.1.3: Australian Government Indigenous expenditure (AGIE)
Australian Institute of
Aboriginal and Torres Strait
Islander Studies
Outcome 1
Departmental 2015–16
Departmental 2014–15
Approp
Bill No. 1
$'000
Approp
Bill No. 2
$'000
Total
approp
$'000
Total
$'000
14,935
13,317
74
75
15,009
13,392
15,009
13,392
Total outcome 1 2015–16
14,935
74
15,009
15,009
Total outcome 1 2014–15
13,317
75
13,392
13,392
14,935
74
15,009
15,009
13,317
14,935
13,317
75
74
75
13,392
15,009
13,392
13,392
15,009
13,392
Total Departmental
2015–16
Total Departmental 2014–15
Total AGIE 2015–16
Total AGIE 2014–15
123
Programme
1
AIATSIS Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in entity resourcing and financial statements
There are no material variances between the entity resources table and the Portfolio
Budget Statements.
3.2.2 Analysis of budgeted financial statements
Budgeted departmental income statement
The statement shows the estimated net cost of services for AIATSIS.
The budgeted net cost of services to AIATSIS for delivering its programmes in 2015–16
is $14.9 million.
Expenses
Total departmental expenses budgeted for in 2015–16 are $20.8 million, comprising
$14.5 million for employee expenses, $5.1 million for suppliers and $1.2 million for
depreciation and amortisation.
Income
Total departmental own-source income budgeted for in 2015–16 is $5.9 million,
comprising $1.6 million from sale of goods and rendering of services, $0.6 million from
interest and $3.6 million from other sources.
Revenue from Government for 2015–16 is budgeted at $14.9 million.
Budgeted departmental balance sheet
The statement shows the estimated end of year position for departmental assets and
liabilities.
Assets
Total departmental assets budgeted for 2015–16 are $42.2 million, comprising
$24.4 million in non-financial assets and $17.8 million in financial assets.
Non-financial assets include $12.0 million for land and buildings and $12.4 million for
property, plant and equipment.
Liabilities
Total departmental liabilities budgeted for in 2015–16 are $3.5 million, comprising
$2.9 million in provisions and $0.6 million in payables.
124
AIATSIS Budget Statements
Budgeted statement of cash flows
The statement provides information on estimates of the extent and nature of cash flows
by categorising the expected cash flows against operating, investing and financing
activities.
Statement of changes in equity – summary of movement
The statement shows the expected movement of equity during the budget year.
3.2.3 Budgeted financial statements tables
Table 3.2.1: Comprehensive income statement (showing net cost of
services) for the period ended 30 June
2014–15
Estimated
actual
$'000
EXPENSES
Employee benefits
Suppliers
Grants
Depreciation and amortisation
Total expenses
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
13,327
4,577
24
1,230
19,158
14,488
5,080
1,230
20,798
9,896
4,670
1,230
15,796
9,941
4,670
1,230
15,841
10,084
4,641
1,230
15,955
1,569
633
3,661
5,863
5,863
1,628
652
3,583
5,863
5,863
797
450
4,713
5,960
5,960
797
450
4,713
5,960
5,960
797
450
4,713
5,960
5,960
13,295
13,295
14,935
14,935
9,836
9,836
9,881
9,881
9,995
9,995
-
-
-
-
-
Total comprehensive income/(loss)
attributable to the Australian Government
Prepared on and Australian Accounting Standards basis.
-
-
-
-
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services
Interest
Other
Total own-source revenue
Total own-source income
Net cost of/(contribution by) services
Revenue from Government
Surplus/(deficit) attributable to the
Australian Government
Total comprehensive income/(loss)
125
AIATSIS Budget Statements
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Other investments
1,050
517
16,483
1,050
517
16,213
1,050
595
15,365
1,050
595
15,095
1,050
595
14,825
Total financial assets
18,050
17,780
17,010
16,740
16,470
Non-financial assets
Land and buildings
Property, plant and equipment
Inventories
Other non-financial assets
11,654
12,386
30
6
11,969
12,415
30
6
12,670
12,558
30
6
12,475
13,097
30
6
12,280
13,636
30
6
Total non-financial assets
24,076
24,420
25,264
25,608
25,952
Total assets
42,126
42,200
42,274
42,348
42,422
LIABILITIES
Payables
Suppliers
Other payables
434
194
434
194
434
194
434
194
434
194
Total payables
628
628
628
628
628
Provisions
Employee provisions
2,875
2,875
2,875
2,875
2,875
Total provisions
2,875
2,875
2,875
2,875
2,875
Total liabilities
Net assets
3,503
3,503
3,503
3,503
3,503
38,623
38,697
38,771
38,845
38,919
3,835
13,939
21,071
38,845
38,845
3,909
13,939
21,071
38,919
38,919
EQUITY*
Parent entity interest
Contributed equity
3,613
3,687
3,761
Reserves
13,939
13,939
13,939
Retained surplus
21,071
21,071
21,071
Total parent entity interest
38,623
38,697
38,771
Total Equity
38,623
38,697
38,771
*
Equity is the residual interest in assets after the deduction of liabilities.
126
AIATSIS Budget Statements
Table 3.2.3: Departmental statement of changes in equity—summary of
movement (Budget year 2015–16)
Retained
earnings
$'000
Asset Contributed
revaluation
equity/
reserve
capital
$'000
$'000
Total
equity
$'000
Opening balance as at 1 July 2015
Balance carried forward from previous period
Adjusted opening balance
Transactions with owners
Contributions by owners
Equity Injection - Appropriation
Sub-total transactions with owners
Estimated closing balance as at
30 June 2016
Closing balance attributable to the
Australian Government
Prepared on an Australian Accounting Standards basis.
127
21,071
13,939
3,613
38,623
21,071
13,939
3,613
38,623
-
-
74
74
74
74
21,071
13,939
3,687
38,697
21,071
13,939
3,687
38,697
AIATSIS Budget Statements
Table 3.2.4: Budgeted departmental statement of cash flows
(for the period ended 30 June)
2014–15
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
13,295
14,935
9,836
9,881
9,995
Sale of goods and rendering of services
1,569
1,628
875
797
797
Interest
Other
633
3,661
652
3,583
450
4,713
450
4,713
450
4,713
Total cash received
19,158
20,798
15,874
15,841
15,955
Cash used
Employees
Suppliers
Other
13,227
4,577
24
14,488
5,080
-
9,896
4,670
-
9,941
4,670
-
10,084
4,641
-
Total cash used
17,828
19,568
14,566
14,611
14,725
1,330
1,230
1,308
1,230
1,230
Net cash from operating activities
INVESTING ACTIVITIES
Cash received
Investments
-
270
848
270
270
Total cash received
-
270
848
270
270
Cash used
Purchase of property, plant and
equipment
Investments
1,075
1,574
2,074
1,574
1,574
330
-
156
-
-
Total cash used
1,405
1,574
2,230
1,574
1,574
Net cash used by investing activities
(1,405)
(1,304)
(1,382)
(1,304)
(1,304)
FINANCING ACTIVITIES
Cash received
Contributed equity
75
Total cash received
75
Net cash from financing activities
75
Net increase/(decrease) in cash held
Cash and cash equivalents at the
1,050
beginning of the reporting period
Cash and cash equivalents at the end
1,050
of the reporting period
Prepared on an Australian Accounting Standards basis.
128
74
74
74
-
74
74
74
-
74
74
74
-
74
74
74
-
1,050
1,050
1,050
1,050
1,050
1,050
1,050
1,050
AIATSIS Budget Statements
Table 3.2.5: Departmental capital budget statement
(for the period ended 30 June)
2014–15
Estimated
actual
$'000
NEW CAPITAL APPROPRIATIONS
Equity injections - Bill 2
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
75
74
74
74
74
75
74
74
74
74
75
74
74
74
74
75
74
74
74
74
75
74
74
74
74
1,000
1,500
2,000
1,500
1,500
TOTAL
RECONCILIATION OF CASH USED TO
ACQUIRE ASSETS TO ASSET
MOVEMENT TABLE
1,075
1,574
2,074
1,574
1,574
Total purchases
1,075
1,574
2,074
1,574
1,574
Total new capital appropriations
Provided for:
Purchase of non-financial assets
Total Items
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriations (a)
Funded internally from departmental
resources (b)
Total cash used to acquire assets
(a)
(b)
1,075
1,574
2,074
1,574
1,574
Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.
Includes the following sources of funding:
- current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB)
- donations and contributions
- gifts
- internally developed assets
- proceeds from the sale of assets.
129
AIATSIS Budget Statements
Table 3.2.6: Statement of asset movements (Budget year 2015–16)
Buildings
Other Heritage and
property, plant
cultural
and equipment
$'000
$'000
$'000
As at 1 July 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
Capital asset additions
Estimated expenditure on new or
replacement assets
By purchase - appropriation equity (a)
By purchase - appropriation ordinary
annual services (b)
Total additions
Other movements
Depreciation/amortisation expense
12,040
(386)
4,123
(1,733)
10,269
(273)
Total
$'000
26,432
(2,392)
11,654
2,390
9,996
24,040
-
-
74
74
510
990
-
1,500
510
990
74
1,574
(195)
(897)
(138)
(1,230)
(195)
(897)
(138)
(1,230)
Total other movements
As at 30 June 2016
Gross book value
Accumulated depreciation/amortisation
and impairment
12,550
Closing net book balance
11,969
(581)
5,113
(2,630)
2,483
10,343
(411)
9,932
28,006
(3,622)
24,384
Estimated operating expenditure in income statement for heritage and cultural assets
Operations and Maintenance
340
Preservation and Conservation
220
Total operating expenditure on heritage and cultural assets
560
(a)
(b)
‘Appropriation equity’ refers to equity injections appropriations provided through Appropriation Bill
(No. 2) 2015–16, including CDABs.
‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)
2015–16 for depreciation/amortisation expenses, DCBs or other operational expenses.
130
AIATSIS Budget Statements
Table 3.2.7: Schedule of budgeted income and expenses administered on
behalf of Government (for the period ended 30 June)
AIATSIS has no budgeted administered income and expenses; therefore Table 3.2.7 is
not presented.
Table 3.2.8: Schedule of budgeted assets and liabilities administered on
behalf of Government (as at 30 June)
AIATSIS has no budgeted administered assets and liabilities; therefore Table 3.2.8 is
not presented.
Table 3.2.9: Schedule of budgeted administered cash flows
(for the period ended 30 June)
AIATSIS has no budgeted administered cash flows on behalf of government; therefore
Table 3.2.9 is not presented.
Table 3.2.10: Administered capital budget statement (for the period ended
30 June)
AIATSIS has no administered capital budget; therefore Table 3.2.10 is not presented.
Table 3.2.11: Statement of administered asset movements (Budget year
2015–16)
AIATSIS has no administered asset movements; therefore Table 3.2.11 is not presented.
3.2.4 Notes to the financial statements
AIATSIS’ budgeted financial statements are prepared in accordance with the
Australian Accounting Standards and Accounting Guidance releases, and having
regard to the Statements of Accounting concepts.
131
132
Australian Institute for
Teaching and School
Leadership
Entity resources and planned
performance
133
AUSTRALIAN INSTITUTE FOR TEACHING AND SCHOOL
LEADERSHIP
Section 1: Entity overview and resources .............................................................. 135
1.1
Strategic direction statement ........................................................................ 135
1.2
Entity resource statement ............................................................................. 136
1.3
Budget measures .......................................................................................... 136
Section 2: Outcomes and planned performance ................................................... 137
2.1
Outcomes and performance information ...................................................... 137
Section 3: Explanatory tables and budgeted financial statements ..................... 142
3.1
Explanatory tables ........................................................................................ 142
3.2
Budgeted financial statements...................................................................... 143
134
AITSL Budget Statements
AUSTRALIAN INSTITUTE FOR TEACHING AND SCHOOL
LEADERSHIP
Section 1: Entity overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
The Australian Institute for Teaching and School Leadership (AITSL) commenced
operations on 1 January 2010.
AITSL is a public company limited by guarantee under the Corporations Act 2001 and is
subject to the Public Governance, Performance and Accountability (PGPA) Act 2013. The
Minister for Education and Training is the owner and sole member of the company.
AITSL operates under its own constitution, with priorities set through letters from the
Minister from time to time. Its primary purpose is to promote excellence in the
profession of teaching and school leadership.
The eleven-member Board, appointed by the Minister for Education and Training,
includes a Chair and Deputy Chair nominated by the Australian Government and
individuals from the Catholic and independent school sectors, teacher unions, teacher
educators, principals’ associations, state and territory regulatory authorities and the
Australian Education, Early Childhood Development and Youth Affairs Senior
Officials Committee (AEEYSOC).
AITSL plays a key role in leading significant national educational reform so that
teachers and school leaders have the maximum impact on student learning in all
Australian schools.
AITSL’s policy direction and work priorities give particular attention to three key
areas: Initial Teacher Education; School Leadership; and Engaging with the Profession.
The Teacher Education Ministerial Advisory Group reported to the Australian
Government early in 2015. The Government response sets out a major role for AITSL
in actioning the recommendations accepted by Government.
135
AITSL Budget Statements
1.2
ENTITY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources will be applied by outcome and by administered and departmental
classification.
Table 1.1: Australian Institute for Teaching and School Leadership resource
statement—Budget estimates for 2015-16 as at Budget May 2015
Actual
Available
Appropriation
2014–15
Opening balance/Reserves at bank
REVENUE FROM GOVERNMENT
Ordinary annual services (a)
Outcome 1
Total ordinary annual services
Other services (b)
Non-operating
Total other services
Total annual appropriations
Payments from related entities (c)
Amounts from the portfolio department
Amounts from other entities
Total
Total funds from Government
FUNDS FROM OTHER SOURCES
Interest
Royalties
Sale of goods and services
Other
Total
Total net resourcing for agency
$'000
-
Estimate of
prior year
amounts
available in
2015–16
$'000
5,313
Proposed at Total 2015–16
2015–16
estimate
Budget
$'000
-
$'000
5,313
-
-
-
-
-
-
-
-
-
-
7,500
7,500
7,500
7,500
7,500
7,500
-
5,313
100
688
788
8,288
100
688
788
13,601
(a) Appropriation Bill (No. 1) 2015–16.
(b) Appropriation Bill (No. 2) 2015–16.
(c) Funding provided by Department of Education and Training.
Notes:
All figures are GST exclusive.
CRF - Consolidated Revenue Fund.
Australian Institute for Teaching and School Leadership is not directly appropriated as it is a corporate
Commonwealth company.
1.3
BUDGET MEASURES
AITSL does not have any new measures since the 2014–15 Budget therefore table 1.2 is
not presented.
136
AITSL Budget Statements
Section 2: Outcomes and planned performance
2.1
OUTCOMES AND PERFORMANCE INFORMATION
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programmes are the
primary vehicle by which government entities achieve the intended results of their
outcome statements. Entities are required to identify the programmes which contribute
to government outcomes over the Budget and forward years.
Each outcome is described below together with its related programmes, specifying the
performance indicators and targets used to assess and monitor the performance of
Australian Institute for Teaching and School Leadership in achieving government
outcomes.
Outcome 1: Enhance the quality of teaching and leadership through developing
standards, recognising teacher excellence, providing professional development
opportunities, and supporting the teacher profession.
Outcome 1 strategy
AITSL is working collaboratively with the eight state and territory education
departments and their Ministers, the Catholic and independent school sectors, teacher
educators, teacher regulatory authorities, teacher unions, professional and community
organisations and teachers and principals throughout Australia to strengthen the
profession. It will undertake a range of targeted activities, complementing the work of
other education agencies, to enhance the quality of teaching and school leadership and
to support the professionalism of teachers and school leaders.
Key strategies in 2015–16 will be to:

support implementation of relevant recommendations accepted by Government
from the report of the Teacher Education Ministerial Advisory Group to the
Australian Government

monitor and maintain the agreed national approach to the Accreditation of Initial
Teacher Education programmes and contribute to the ongoing improvement of
initial teacher education

continue to support the nationwide promulgation and use of the Australian
Professional Standard for Principals and improvement in the preparation and
professional practice of school leaders

continue to support the promulgation and use of the Australian Professional
Standards for Teachers and improvement in the professional practice of teachers
137
AITSL Budget Statements

continue to monitor and support the implementation of elements of policy
endorsed for the Nationally Consistent Registration of Teachers in Australia

continue to maintain, monitor and report on the implementation of the national
approach to Certification of Highly Accomplished and Lead Teachers in Australia

continue to support the implementation of the Australian Teacher Performance
and Development Framework and the Australian Charter for the Professional
Learning of Teachers and School Leaders

undertake and engage with leading national and international research to support
the improvement of teacher and school leader quality through a strong evidence
base

undertake the role of assessing authority under the Migration Regulations 1994 for
the purposes of skilled migration to Australia as a pre-primary, primary,
secondary, middle or special education school teacher

implement and maintain high standards of corporate governance.
138
AITSL Budget Statements
Outcome expense statement
Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.
Table 2.1: Budgeted expenses for Outcome 1
Outcome 1: Enhance the quality of teaching and school leadership
through developing standards, recognising teacher excellence, providing
professional development opportunities and supporting the teacher
profession.
Programme 1.1: Assistance for quality teaching and learning
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Payment from related entities
Revenues from other independent sources
Total for Programme 1.1
Outcome 1 Totals by resource type
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Payment from related entities
Revenues from other independent sources
Total expenses for Outcome 1
Average Staffing Level (number)
139
2014–15
Estimated
actual
expenses
$'000
2015–16
Estimated
expenses
$'000
14,420
950
15,370
7,500
788
8,288
14,420
950
15,370
7,500
788
8,288
2014–15
62
2015–16
56
AITSL Budget Statements
Programme 1.1: Assistance for Quality Teaching and Learning
Programme objectives

implement relevant recommendations accepted by Government from the report of
the Teacher Education Ministerial Advisory Group to the Australian Government

monitor and maintain the agreed national approach to the Accreditation of Initial
Teacher Education programmes and contribute to the ongoing improvement of
initial teacher education

provide effective support for the ongoing implementation and promulgation of the
Australian Professional Standard for Principals and improvement in the
preparation and professional practice of school leaders

provide effective support for the nationwide promulgation and use of the
Australian Professional Standards for Teachers and improvement in the
professional practice of teachers

monitor and support the implementation of elements of policy endorsed for the
Nationally Consistent Registration of Teachers in Australia

provide effective support, moderate, gather data and report on implementation of
the national approach agreed by Ministers to Certification of Highly Accomplished
and Lead Teachers in Australia

provide effective support, including practical resources and tools, for the
nationwide implementation of the Australian Teacher Performance and
Development Framework and the Australian Charter for the Professional Learning
of Teachers and School Leaders

maintain and advance the currency of AITSL’s evidence base by engaging with
leading national and international research

continue to perform efficiently and effectively in the role of assessing authority
under the Migration Regulations 1994 for the purposes of skilled migration to
Australia as a pre-primary, primary, secondary, or special education school teacher

effectively implement and maintain high standards of corporate governance.
Programme expenses
Programme Expenses 1.1 Assistance for Quality Teaching and Learning
2014–15
Estimated
actual
$'000
Annual departmental expenses:
Departmental item
Total Programme expenses
15,370
15,370
140
2015–16
Budget
$'000
8,288
8,288
2016–17
Forward
estimate
$'000
8,505
8,505
2017–18
Forward
estimate
$'000
8,623
8,623
2018–19
Forward
estimate
$'000
-
AITSL Budget Statements
Programme 1.1 deliverables
Deliverable
Accreditation of Initial Teacher Education
Programmes in Australia
2015–16 Target
•
•
•
relevant recommendations of the Teacher
Education Ministerial Advisory Group
implemented
effective and efficient panel arrangements
maintained
initial Teacher Education Data Report
published
Australian Professional Standard for
Principals
•
support materials promulgated effectively,
including online Leadership Profiles,
research repository and findings from
research on principal preparation
Australian Professional Standards for
Teachers
•
support materials promulgated effectively,
including for observation and feedback,
collaboration and professional learning
longitudinal evaluation of implementation
completed
•
Nationally Consistent Registration of
Teachers in Australia
•
implementation monitored and supported
as appropriate
Certification of Highly Accomplished and
Lead Teachers in Australia
•
quality assurance arrangements
maintained
professional network supported
data maintained and reported on
certification decisions
•
•
Australian Teacher Performance and
Development Framework
•
support materials for teachers and school
leaders promulgated
Australian Charter for the Professional
Learning of Teachers and School Leaders
•
supporting materials for teachers and
school leaders promulgated
Fulfilling the role of assessing authority
under the Migration Regulations 1994 for
the purposes of skilled migration to Australia
as a pre-primary, primary or secondary, or
special education school teacher
•
processing of applications undertaken to
the satisfaction of relevant authorities
Undertaking and engaging with national and
international research and innovative
developments in best practice
•
evidence base for AITSL’s work enhanced
by research undertaken, with national and
international agencies and experts
Implementation of measures to ensure high
standards of corporate governance
•
effective board governance arrangements
maintained
audit, risk management and financial
advisory structures operating with
transparency and rigour
•
Programme 1.1 key performance indicators
AITSL promotes excellence in the profession of teaching and school leadership.
141
AITSL Budget Statements
Section 3: Explanatory tables and budgeted financial
statements
Section 3 presents explanatory tables and budgeted financial statements which provide
a comprehensive snapshot of entity finances for the 2015–16 budget year. It explains
how budget plans are incorporated into the financial statements and provides further
details of the reconciliation between appropriations and programme expenses,
movements in administered funds, special accounts and government Indigenous
expenditure.
3.1
EXPLANATORY TABLES
3.1.1 Movement of administered funds between years
AITSL has no administered funds. For this reason Table 3.1.1 is not presented.
3.1.2 Special accounts
Table 3.1.2: Estimates of special account flows and balances
AITSL has no special accounts. For this reason Table 3.1.2 is not presented.
3.1.3 Australian Government Indigenous expenditure
Table 3.1.3: Australian Government Indigenous expenditure (AGIE)
AITSL has no Indigenous specific expenses. For this reason Table 3.1.3 is not
presented.
142
AITSL Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in entity resourcing and financial statements
There are no differences in entity resourcing and the financial statements.
3.2.2 Analysis of budgeted financial statements
In June 2013, the Ministerial Council for Education, Early Childhood Development and
Youth Affairs agreed to a funding arrangement for the two year period 2013–14 to
2014–15. The funding received for the 2014–15 year will be $14.4 million. In the same
year the income from Overseas Skills Assessment is estimated to be $0.7 million and
income earned for other services provided to third parties is estimated to be
$0.5 million.
AITSL is budgeting for a surplus of $0.5 million in the financial year 2014–15. The
budget for the 2015–16 financial year is a break even result.
AITSL has been provided with a commitment to funding of $23 million for the three
year period to 30 June 2018. That total includes funding of $7.5 million for the year
ending 30 June 2016.
The net asset position of $4.8 million as at 30 June 2014 is expected to increase to
$5.3 million at 30 June 2015. Total assets at 30 June 2015 are estimated to be $9.1 million
comprising $7.9 million of financial assets and $1.2 million in non-financial assets.
Total liabilities at 30 June 2015 are estimated to be $3.8 million of which $0.9 million
being accrued employee entitlements and $2.3 million towards supplier payables and
$0.6 million of other provisions.
143
AITSL Budget Statements
3.2.3 Budgeted financial statements tables
Table 3.2.1: Comprehensive income statement (showing net cost of
services) for the period ended 30 June
2014–15
Estimated
actual
$'000
EXPENSES
Employee benefits
6,699
Suppliers
8,461
Depreciation and amortisation
210
Total expenses
15,370
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services
1,200
Interest
170
Other
14,530
Total own-source revenue
15,900
Gains
Other
Total gains
Total own-source income
15,900
Net cost of (contribution by)
530
services
Revenue from Government
Surplus (Deficit) attributable to
the Australian Government
530
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation surplus
Total other comprehensive income
Total comprehensive income (loss)
530
Total comprehensive income (loss)
attributable to the Australian
Government
530
Prepared on Australian Accounting Standards basis.
144
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
5,688
2,400
200
8,288
5,845
2,470
190
8,505
5,893
2,550
180
8,623
-
688
100
7,500
8,288
705
100
7,700
8,505
723
100
7,800
8,623
-
8,288
8,505
8,623
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
AITSL Budget Statements
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
2014–15
Estimated
actual
$'000
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Other investments
Other financial assets
Total financial assets
Non-financial assets
Property, plant and equipment
Investment property
Other non-financial assets
Total non-financial assets
Assets held for sale
Total assets
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
1,761
3,806
2,372
7,939
3,575
1,875
1,390
6,840
3,849
1,925
1,419
7,193
4,159
1,950
1,445
7,554
-
1,175
1,175
9,114
975
975
7,815
785
785
7,978
605
605
8,159
-
2,273
2,273
1,183
1,183
1,312
1,312
1,428
1,428
-
-
-
-
-
-
885
643
1,528
694
625
1,319
745
608
1,353
827
591
1,418
-
3,801
2,502
2,665
2,846
-
5,313
Net assets
EQUITY
Parent entity interest
Contributed equity
Reserves
Retained surplus
5,313
(accumulated deficit)
5,313
Total parent entity interest
5,313
Total Equity
Prepared on Australian Accounting Standards basis.
5,313
5,313
5,313
-
-
-
-
-
5,313
5,313
5,313
5,313
5,313
5,313
5,313
5,313
5,313
-
LIABILITIES
Payables
Suppliers
Other payables
Total payables
Interest bearing liabilities
Other interest bearing liabilities
Total interest bearing liabilities
Provisions
Employee provisions
Other provisions
Total provisions
Liabilities included in disposal groups
held for sale
Total liabilities
145
AITSL Budget Statements
Table 3.2.3: Departmental statement of changes in equity—summary of
movement (Budget year 2015–16)
Retained
earnings
$'000
Opening balance as at 1 July 2015
5,313
Balance carried forward from previous period
Adjustment for changes in accounting
policies
5,313
Adjusted opening balance
Comprehensive income
Other comprehensive income
Surplus (deficit) for the period
Total comprehensive income
of which:
Attributable to the Australian Government
Transactions with owners
Distributions to owners
Other
Contributions by owners
Other
Sub-total transactions with owners
Transfers between equity components
Estimated closing balance as at
5,313
30 June 2016
Closing balance attributable to the
5,313
Australian Government
Prepared on Australian Accounting Standards basis.
146
Asset
Other
revaluation reserves
reserve
$'000
$'000
Contributed
equity/
capital
$'000
Total
equity
$'000
-
-
-
5,313
-
-
-
5,313
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,313
-
-
-
5,313
AITSL Budget Statements
Table 3.2.4: Budgeted departmental statement of cash flows
(for the period ended 30 June)
OPERATING ACTIVITIES
Cash received
Appropriations
Receipts from Government
Sale of goods and rendering of services
Interest
Other
Total cash received
Cash used
Employees
Suppliers
Total cash used
2014–15
Estimated
actual
$'000
2015–16
Budget
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
14,440
1,200
170
110
15,920
9,412
688
100
10,200
7,650
705
100
8,455
7,775
723
100
8,598
-
6,815
7,915
14,730
5,895
3,473
9,368
5,815
2,337
8,152
5,842
2,420
8,262
-
1,190
832
303
336
-
-
982
982
-
-
1,037
1,037
-
29
29
26
26
-
(29)
(26)
-
Net cash from (used by) operating activities
INVESTING ACTIVITIES
Cash received
Investments
Other
Total cash received
Cash used
Investments
Other
Total cash used
Net cash from (used by) investing activities
(1,037)
FINANCING ACTIVITIES
Total cash received
Total cash used
Net cash from (used by) financing activities
Net increase (decrease) in cash held
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period
$'000
982
2018–19
Forward
estimate
$'000
-
-
-
-
-
153
1,814
274
310
-
1,608
1,761
3,575
3,849
-
1,761
3,575
3,849
4,159
-
Prepared on Australian Accounting Standards basis.
Table 3.2.5: Departmental capital budget statement (for the period ended
30 June)
AITSL does not have a departmental capital budget. For this reason Table 3.2.5 is not
presented.
147
AITSL Budget Statements
Table 3.2.6: Statement of asset movements (Budget year 2015-16)
As at 1 July 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
Other movements
Depreciation/amortisation expense
Other
Total other movements
As at 30 June 2016
Gross book value
Accumulated depreciation/amortisation
and impairment
Closing net book balance
Land
Buildings
$'000
$'000
Other
property,
plant and
equipment
$'000
-
-
1,843
-
-
-
-
-
-
-
-
-
-
(896)
-
-
947
(696)
1,147
(200)
(200)
1,843
Heritage
and
cultural
$'000
Computer
software
and
intangibles
$'000
28
-
Total
$'000
1,871
-
-
28
-
(696)
-
-
28
-
-
-
(896)
28
-
975
1,175
(200)
(200)
1,871
Prepared on Australian Accounting Standards basis.
Table 3.2.7: Schedule of budgeted income and expenses administered on
behalf of Government (for the period ended 30 June)
AITSL has no income and expenses administered on behalf of Government. For this
reason Table 3.2.7 is not presented.
Table 3.2.8: Schedule of budgeted assets and liabilities administered on
behalf of Government (as at 30 June)
AITSL has no assets and liabilities administered on behalf of Government. For this
reason Table 3.2.8 is not presented.
Table 3.2.9: Schedule of budgeted administered cash flows
(for the period ended 30 June)
AITSL has no administered cash flows. For this reason Table 3.2.9 is not presented.
Table 3.2.10: Administered capital budget statement (for the period ended
30 June)
AITSL has no administered capital budget. For this reason Table 3.2.10 is not
presented.
Table 3.2.11: Statement of administered asset movements (Budget year
2015–16)
AITSL has no administered assets. For this reason Table 3.2.11 is not presented.
148
Australian Research Council
Entity resources and planned
performance
149
AUSTRALIAN RESEARCH COUNCIL
Section 1: Entity overview and resources .............................................................. 151
1.1
Strategic direction statement ........................................................................ 151
1.2
Entity resource statement ............................................................................. 153
1.3
Budget measures .......................................................................................... 154
Section 2: Outcomes and planned performance ................................................... 155
2.1
Outcomes and performance information ...................................................... 155
Section 3: Explanatory tables and budgeted financial statements ..................... 167
3.1
Explanatory tables ........................................................................................ 167
3.2
Budgeted financial statements...................................................................... 169
150
ARC Budget Statements
AUSTRALIAN RESEARCH COUNCIL
Section 1: Entity overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
The Australian Research Council (ARC) is a non-corporate Commonwealth entity
established under the Australian Research Council Act 2001.
The ARC’s mission is to deliver policy and programmes that advance Australian
research and innovation globally and benefit the community.
The mission aligns with the ARC outcome statement which is growth of knowledge
and innovation through managing research funding schemes, measuring research
excellence and providing advice.
The ARC is responsible for:

funding excellent research and research training

evaluating the quality of research

providing policy advice on research matters.
The ARC manages the National Competitive Grants Program (NCGP), a significant
component of the Australian Government’s investment in research and innovation.
Through the NCGP, the ARC supports excellent research and research training across
all disciplines, awarding funding on the basis of a competitive peer review process.
The NCGP comprises two programmes, Discovery and Linkage, under which the ARC
funds a range of complementary schemes that provide funding for basic and applied
research, research training, research collaborations and infrastructure. Together, the
ARC funding schemes:

support the generation of new knowledge, technologies, products and innovations

provide incentives for researchers to partner with each other, business, the public
sector and community organisations to undertake research in areas of importance
to the end-users of research outcomes

build the scale and focus of research in areas of national priority

support the development of highly trained research personnel.
The ARC manages the Excellence in Research for Australia (ERA), which assesses
research quality by research discipline at eligible Australian higher education
institutions. ERA is an established evaluation framework that reflects the
Government’s commitment to a transparent and streamlined approach to research
evaluation. It provides a national stocktake of discipline-level areas of research
151
ARC Budget Statements
strength and areas where there is opportunity for development across the full
spectrum of research activity.
The ARC is also responsible for the provision of high quality advice to the Minister
about matters related to research.
152
ARC Budget Statements
1.2
ENTITY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources will be applied by outcome and by administered and departmental
classification.
Table 1.1: Australian Research Council Resource Statement Budget
estimates for 2015–16 as at Budget May 2015
Actual Estimate of prior
Available
year amounts
Appropriation
available in
2014–15
2015–16
$'000
$'000
Ordinary annual services (a)
Departmental appropriation
Prior year appropriations (b)
Departmental appropriation (c)
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
$'000
8,557
21,014
8,108
-
20,813
8,108
20,813
Total
Administered expenses
Outcome 1
Total
29,571
8,108
20,813
28,921
5,397
5,397
-
5,156
5,156
5,156
5,156
Total ordinary annual services [A]
Departmental non-operating
Prior year appropriations (b)
Equity injections
34,968
8,108
25,969
34,077
278
2,605
1,173
-
2,572
1,173
2,572
2,883
1,173
2,572
3,745
2,883
1,173
2,572
3,745
37,851
9,281
28,541
37,822
875,642
-
789,659
789,659
875,642
-
789,659
789,659
913,493
9,281
818,200
827,481
6,667
-
-
-
6,667
-
-
-
Total resourcing [A+B+C+D]
Less appropriations drawn from annual or
special appropriations above and credited
to special accounts
920,160
9,281
818,200
827,481
Total net resourcing for ARC
913,493
Total
Total other services [B]
Total available annual appropriations
[A+B]
Special appropriations
Special appropriations limited by amount
Special Appropriation ARC Act 2001
Total special appropriations [C]
Total appropriations excluding special
accounts
Special accounts
Opening balance (d)
Total special accounts [D]
(6,667)
(a)
(b)
(c)
-
-
-
9,281
818,200
827,481
Appropriation Bill (No. 1) 2015–16.
Estimated adjusted balance carried forward from previous year.
Includes an amount of $1.253m in 2015–16 for the Departmental Capital Budget (refer to Table 3.2.5
for further details). For accounting purposes this amount has been designated as 'contributions by
owners'.
(d) Estimated opening balance for special accounts (less ‘Special Public Money’ held in accounts like
Other Trust Monies accounts (OTM), Services for other Government and Non-agency Bodies accounts
(SOG), or Services for Other Entities and Trust Moneys accounts (SOETM)).
Notes:
For further information on special accounts see Table 3.1.2.
All figures are GST exclusive.
153
ARC Budget Statements
1.3
BUDGET MEASURES
Budget measures in Part 1 relating to the ARC are detailed in Budget Paper No. 2 and
are summarised below.
Table 1.2: ARC 2015–16 Budget measures
Part 1: Measures announced since the 2014–15 Mid-Year Economic and Fiscal
Outlook (MYEFO)
Since the 2014–15 MYEFO, the ARC did not have any Budget measures therefore
Table 1.2 Part 1 is not presented.
Part 2: MYEFO measures not previously reported in a portfolio statement
Programme
Measures (if applicable)
Communications and Public Affairs
Functions – target savings (a)
Administered expenses
Departmental expenses
2014–15 2015–16 2016–17 2017–18 2018–19
$'000
$'000
$'000
$'000
$'000
All
Total
Total measures
Administered
Departmental
0
(11)
0
(21)
0
(21)
0
(22)
0
0
(11)
(21)
(21)
(22)
0
0
(11)
0
(21)
0
(21)
0
(22)
0
0
Total
(11)
(21)
(21)
(22)
0
(a) These measures were announced at Budget 2014–15 but not reported in the ARC’s Portfolio Budget
Statements.
Prepared on a Government Finance Statistics (fiscal) basis.
154
ARC Budget Statements
Section 2: Outcomes and planned performance
2.1
OUTCOMES AND PERFORMANCE INFORMATION
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programmes are the
primary vehicle by which Government entities achieve the intended results of their
outcome statements. Entities are required to identify the programmes which contribute
to government outcomes over the Budget and forward years.
Each outcome is described below together with its related programmes, specifying the
performance indicators and targets used to assess and monitor the performance of the
Australian Research Council (ARC) in achieving government outcomes.
Outcome 1: Growth of knowledge and innovation through managing research
funding schemes, measuring research excellence and providing advice.
Outcome 1 strategy
The ARC will pursue the results outlined in its outcome (that is, ‘growth of knowledge
and innovation’ in Australia) by:

supporting excellent research and research training and cross-sector research
partnerships through administration of the National Competitive Grants Program
(NCGP)

measuring research excellence at Australia’s higher education institutions through
administration of Excellence in Research for Australia (ERA)

advancing Australian research and innovation by providing high-quality advice
on research matters to Government.
The NCGP supports two main streams of research funding—Discovery and Linkage
(programme 1.1 and programme 1.2). Through Discovery, funding is available for
investigator-initiated research projects and research fellowships and awards. Through
Linkage, funding is available for research projects, infrastructure, hubs and centres
that foster collaboration among researchers and research teams in Australia and
internationally, and with industry and other end-users of research.
The ARC evaluates the excellence of research undertaken within eligible Australian
higher education institutions. ERA evaluates research quality using a combination of
indicators and expert review by committees comprising experienced, internationally
recognised experts. It identifies excellence across the full spectrum of research
activities and compares Australia’s university research effort against international
benchmarks. The data generated through the ERA process provides a unique resource
155
ARC Budget Statements
for informing evidence-based policy on higher education and publicly funded research
across government.
The ARC provides advice to the Government on research matters. In working to
achieve its outcome the ARC participates in whole-of-government policy dialogue and
engages with its stakeholders across the national and international research and
innovation systems.
156
ARC Budget Statements
Outcome expense statement
Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.
Table 2.1: Budgeted expenses for Outcome 1
Outcome 1: Growth of knowledge and innovation through managing
research funding schemes, measuring research excellence and
providing advice.
Programme 1.1: Discovery - Research and Research Training
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Special appropriations
Departmental expenses
Departmental appropriation (a)
Expenses not requiring appropriation in the Budget year (b)
Total for programme 1.1
Programme 1.2: Linkage - Cross Sector Research Partnerships
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Special appropriations
Special accounts
Departmental expenses
Departmental appropriation (a)
Expenses not requiring appropriation in the Budget year (b)
Total for programme 1.2
Programme 1.3: Excellence in Research for Australia
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Departmental expenses
Departmental appropriation (a)
Expenses not requiring appropriation in the Budget year (b)
Total for programme 1.3
Outcome 1 Totals by appropriation type
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Special appropriations
Special accounts
Departmental expenses
Departmental appropriation (a)
Expenses not requiring appropriation in the Budget year (b)
Total expenses for Outcome 1
2014–15
Estimated
actual
expenses
$'000
2015–16
Estimated
expenses
1,060
549,879
1,086
514,269
7,463
1,186
7,357
1,359
559,588
524,071
1,067
319,096
6,667
1,032
275,390
-
9,498
1,186
9,364
1,359
337,514
287,145
3,270
3,038
2,789
1,186
2,839
1,359
7,245
7,236
5,397
868,975
6,667
5,156
789,659
-
19,750
3,558
19,560
4,077
904,347
818,452
$'000
2014–15
2015–16
120
120
Average staffing level (number)
(a) Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and
'Revenue from independent sources (s 74)'.
(b) Expenses not requiring appropriation in the budget year are made up of depreciation expenses,
amortisation expenses and audit fees.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of
the budget year as government priorities change.
157
ARC Budget Statements
Programme 1.1: Discovery – research and research training
Programme 1.1 objective
The Discovery programme supports the growth of Australia’s research and innovation
capacity by supporting research and research training, which generates new
knowledge, technologies, products and ideas, the creation of jobs, economic growth
and an enhanced quality of life in Australia.
Specifically, the objectives of the Discovery programme are to deliver outcomes of
benefit to Australia and build Australia’s research capacity through support for:

excellent, internationally competitive research by individuals and teams

research training and career opportunities for the best Australian and international
researchers

international collaboration

research in priority areas.
The Discovery programme schemes providing funding (new and/or ongoing) in
2015–16 are Australian Laureate Fellowships, Discovery Early Career Researcher
Award, Discovery Indigenous, Discovery Projects and Future Fellowships.
Programme 1.1 expenses
Administered and departmental expenses for the Discovery programme are expected
to remain relatively stable over the forward estimates.
Annual administered expenses:
Administered item
Special appropriations:
Australian Research Council Act 2001
Annual departmental expenses:
Programme support
Expenses not requiring appropriation in the
Budget year (a)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
1,060
1,086
1,114
1,142
1,171
549,879
514,269
488,792
515,239
517,498
7,463
7,357
7,287
7,155
7,190
1,186
1,359
1,528
1,564
1,564
559,588
524,071
498,721
525,100
527,423
Total programme expenses
(a) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,
amortisation expenses and audit fees.
158
ARC Budget Statements
Programme 1.1 deliverables
Through the Discovery programme schemes, the ARC delivers funding to individual
research projects, and research fellowships and awards. Funding is awarded to
administering organisations on the basis of competitive peer review processes
involving Australian and international experts.
Specific deliverables are as follows:

Deliverable: Grants

Deliverable: Grants management

Deliverable: Strategic policy advice on research and research training.
Programme 1.1 key performance indicators
The key performance indicators (KPIs) of the Discovery programme are identified in
the table below. The KPIs focus on long-term outcomes as well as medium-term
outcomes relating to building Australia’s research capacity, for example, generating
knowledge and supporting research training and careers, international collaboration
and contributions in areas of priority.
The Discovery programme KPIs used in the 2015–16 Portfolio Budget Statements have
been revised to provide flexibility for the transition to new performance measurement
requirements for Corporate Plans. A report against the KPIs and targets in the
2014–15 PBS will be provided in the 2014–15 ARC Annual Report.
159
ARC Budget Statements
Key performance indicators
Outcomes of benefit to Australia
Evidence of economic, environmental, social, health and/or cultural benefits to Australia arising
from Discovery research, including in areas of priority
Greater than 95 per cent of completed Discovery research projects report their objectives were
met
Building Australia’s research capacity – excellent research and researchers
Evidence that Discovery research projects produce excellent, internationally competitive
research
Winning of prestigious prizes and awards by Discovery researchers
Building Australia’s research capacity – research training and careers
Evidence that Discovery research projects support career opportunities for early-career
researchers
Evidence that Discovery research projects involve higher degree by research students
Evidence that Discovery fellowships and awards are accessible to international applicants
(foreign nationals and returning Australians)
Building Australia’s research capacity – international collaboration
Evidence that Discovery research projects involve international collaboration
Building Australia’s research capacity – research in areas of priority
Evidence that Discovery research projects address an area of research priority
160
ARC Budget Statements
Programme 1.2: Linkage – cross-sector research partnerships
Programme 1.2 objective
The Linkage programme supports research collaboration by encouraging partnerships
between university-based researchers and researchers in other sectors in Australia and
overseas that generate new knowledge, technologies and innovations.
The objectives of the Linkage programme are to deliver outcomes of benefit to
Australia and build Australia’s research and innovation capacity through support for:

excellent, internationally competitive collaborative research between universitybased researchers and researchers in other sectors

research training and career opportunities that enable Australian and international
researchers and research students to work with industry and other end-users

research in priority areas.
The Linkage programme schemes providing funding (new and/or ongoing) in 2015–16
are ARC Centres of Excellence, co-funded research centres, Industrial Transformation
Research Hubs, Industrial Transformation Training Centres, Linkage Infrastructure,
Equipment and Facilities, Linkage Learned Academies Special Projects, Linkage
Projects and Special Research Initiatives.
Programme 1.2 expenses
Administered and departmental expenses for the Linkage programme are expected to
remain relatively stable over the forward estimates.
Annual administered expenses:
Administered item
Special appropriations:
Australian Research Council Act 2001
Special account expenses:
ARC Research Endowment Account
Annual departmental expenses:
Programme support
Expenses not requiring appropriation in the
Budget year (a)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
1,067
1,032
1,033
1,032
1,067
319,096
275,390
262,431
268,368
274,809
6,667
-
-
-
-
9,498
9,364
9,275
9,106
9,150
1,186
1,359
1,528
1,564
1,564
337,514
287,145
274,267
280,070
286,591
Total programme expenses
(a) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,
amortisation expenses and audit fees.
161
ARC Budget Statements
Programme 1.2 deliverables
Through the Linkage programme schemes, the ARC delivers funding for individual
research projects, infrastructure, hubs and centres. Funding is awarded to
administering organisations on the basis of competitive peer review processes
involving Australian and international experts.
Specific deliverables are:

Deliverable: Grants

Deliverable: Grants management

Deliverable: Strategic policy advice on research partnerships.
Programme 1.2 key performance indicators
The key performance indicators (KPIs) of the Linkage programme are identified in the
table below. The KPIs focus on long-term outcomes as well as medium-term outcomes
relating to building Australia’s research capacity, for example, generating knowledge
and supporting research partnerships, research training and careers, and contributions
in areas of priority.
The Linkage programme KPIs used in the 2015–16 Portfolio Budget Statements have
been revised to provide flexibility for the transition to new performance measurement
requirements for Corporate Plans. A report against the KPIs and targets in the 2014–15
PBS will be provided in the 2014–15 ARC Annual Report.
Key performance indicators
Outcomes of benefit to Australia
Evidence of economic, environmental, social, health and/or cultural benefits to Australia arising
from Linkage research, including in areas of priority
Greater than 95 per cent of completed Linkage research projects report their objectives were
met
Building Australia’s research capacity – excellent research and researchers
Evidence that Linkage research projects produce excellent, internationally competitive
research
Building Australia’s research capacity – collaboration
Average number of organisations involved in Linkage research projects is maintained or
increased
Greater than 90 per cent of partner organisations rate the research partnerships supported
through Linkage research projects as beneficial or very beneficial
Linkage research projects leverage significant national and international investment from
partner organisations (cash and in-kind)
Evidence that Linkage funding supports research projects that involve collaboration with
industry
Proportion of Linkage research projects involve international collaboration
162
ARC Budget Statements
Key performance indicators
Building Australia’s research capacity – research training and careers
Evidence that Linkage research projects support career opportunities for early-career
researchers
Evidence that Linkage research projects involve higher degree by research students
Evidence that Linkage research projects support research training in areas of strategic
importance to Australian industries
Building Australia’s research capacity – research in areas of priority
Evidence that Linkage research projects address areas of research priority
163
ARC Budget Statements
Programme 1.3: Excellence in Research for Australia
Programme 1.3 objective
The Excellence in Research for Australia (ERA) programme aims to improve research
quality and strategic planning at eligible Australian higher education institutions and
inform Government policy by identifying research strengths and disciplines that are
internationally competitive and highlighting areas where there are opportunities for
further development and investment.
The objectives of ERA are to:

manage an evaluation framework that gives government, industry, business and
the wider community assurance of the excellence of research conducted in
Australian higher education institutions

provide a national stocktake of discipline level areas of research strength and areas
where there is opportunity for development in Australian higher education
institutions

identify excellence across the full spectrum of research performance

identify emerging research areas and opportunities for further development

allow for comparisons of research in Australia, nationally and internationally, for
all discipline areas.
Programme 1.3 expenses
Administered and departmental expenses reflect the funding for the ongoing
administration of ERA.
Annual administered expenses:
Administered item
Annual departmental expenses:
Programme support
Expenses not requiring appropriation in the
Budget year (a)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
3,270
3,038
2,999
2,942
3,000
2,789
2,839
2,890
2,942
2,995
1,186
1,359
1,528
1,564
1,564
7,245
7,236
7,417
7,448
7,559
Total programme expenses
(a) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,
amortisation expenses and audit fees.
164
ARC Budget Statements
Programme 1.3 deliverables
Through ERA, the ARC delivers regular evaluations of the excellence of research
undertaken in eligible Australian higher education institutions. The 2015 ERA
evaluation is currently underway, with outcomes due to be reported during 2015–16.
Evaluations are conducted using a combination of indicators and expert review by
committees comprising experienced, internationally recognised experts. The ARC also
provides ongoing policy advice on broader research matters related to the
measurement of research quality.
Specific deliverables for 2015–16 are:

Deliverable: ERA 2015 evaluation

Deliverable: ERA 2015 National Report

Deliverable: Strategic policy advice on broad research matters related to the
measurement of research quality.
Programme 1.3 key performance indicators
The key performance indicators (KPIs) of ERA are identified in the table below. The
ARC has conducted two full ERA evaluations (in 2010 and 2012 respectively) with a
third evaluation underway in 2015.
The ERA KPIs used in the 2015–16 Portfolio Budget Statements have been revised to
reflect all stages of the ERA process and provide flexibility for the transition to new
performance measurement requirements for Corporate Plans. A report against the
KPIs and targets in the 2014–15 PBS will be provided in the 2014–15 ARC Annual
Report.
Key performance indicators
Conduct high-quality evaluation
Evidence that the ERA framework remains relevant and best practice
Evidence that ERA National Reports provide assurance of the excellence of research
conducted in Australia
Outcomes of benefit to Australia
Evidence that ERA improves the research performance of eligible Australian higher education
institutions
Evidence that ERA improves strategic planning at eligible Australian higher education
institutions
Evidence that ERA positively informs Australian government policy
165
ARC Budget Statements
Evaluations for Outcome 1
The following programme evaluations are planned for 2015–16:
ARC Centres of Excellence
This evaluation commenced in 2014–15 and will conclude in 2015–16. Its focus is on
assessing the extent to which the scheme operates as an integrated component of the
NCGP, programme objectives are being achieved, and the needs of stakeholders
within the research sector are being met.
Linkage Projects
This evaluation will focus on the potential for programme improvements on the basis
of a better understanding of the factors that shape demand for, and barriers to,
participation in university research projects by Partner Organisations from the private,
not-for-profit and government sectors.
166
ARC Budget Statements
Section 3: Explanatory tables and budgeted financial
statements
Section 3 presents explanatory tables and budgeted financial statements which provide
a comprehensive snapshot of entity finances for the 2015–16 budget year. It explains
how budget plans are incorporated into the financial statements and provides further
details of the reconciliation between appropriations and programme expenses,
movements in administered funds, special accounts and government Indigenous
expenditure.
3.1
EXPLANATORY TABLES
3.1.1 Movement of administered funds between years
The ARC has had no movement of administered funds therefore table 3.1.1 is not
presented.
3.1.2 Special accounts
Special accounts provide a means to set aside and record amounts used for specified
purposes. Special accounts can be created by a Finance Minister’s Determination under
section 78 of the PGPA Act or under separate enabling legislation. Table 3.1.2 shows
the expected additions (receipts) and reductions (payments) for each account used by
the ARC.
Table 3.1.2: Estimates of special account flows and balances
Outcome
ARC Research Endowment
Account - Australian Research
Council Act 2001 (A)
2015–16
ARC Research Endowment
Account - Australian Research
Council Act 2001 (A)
2014–15
Total special accounts
2015–16 Budget estimate
Total special accounts
2014–15 estimated actual
(A) = Administered
Opening
balance
$'000
Receipts
$'000
Payments Adjustments
$'000
$'000
Closing
balance
$'000
1
-
-
-
-
-
1
6,667
-
(6,667)
-
-
-
-
-
-
-
6,667
-
(6,667)
-
-
167
ARC Budget Statements
3.1.3 Australian Government Indigenous expenditure
Table 3.1.3: Australian Government Indigenous expenditure (AGIE)
Outcome
Approp
Bill No. 1
$'000
Approp
Bill No. 2
$'000
Australian Research Council
Outcome 1
Administered 2015–16
Administered 2014–15
Special
approp
$'000
Total
approp
$'000
5,456
5,548
5,456
5,548
Other
Total
$'000
$'000
Programme
1.1 & 1.2
5,456
5,548
Total outcome 2015–16
-
-
5,456
5,456
-
5,456
Total outcome 2014–15
-
-
5,548
5,548
-
5,548
Total AGIE 2015–16
Total AGIE 2014–15
-
-
5,456
5,548
5,456
5,548
-
5,456
5,548
168
ARC Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in entity resourcing and financial statements
There are no material variances between the entity resources table and the ARC’s
budget statements.
3.2.2 Analysis of budgeted financial statements
Budgeted departmental income statement
The budgeted net cost of services to the ARC for delivering its programmes in 2015–16
is $23.5 million.
As in previous years the ARC’s financial statements reflect the removal of depreciation
funding as part of the Operation Sunlight net cash appropriation framework, which
has the effect of creating a technical operating loss in 2015–16 and the forward years.
Budgeted departmental balance sheet
The statement shows the estimated end of year position for departmental assets and
liabilities.
Assets
Total departmental assets budgeted for in 2015–16 are $28.0 million, comprising
$9.2 million for financial assets and $18.8 million for non-financial assets.
The $18.8 million in non-financial assets includes $1.9 million for land and buildings,
$0.3 million for plant and equipment, $16.3 million for intangibles (including internally
developed software) and $0.3 million for other non-financial assets. The $9.2 million in
financial assets consists of $0.3 million in cash and $8.9 million in receivables.
Liabilities
Total departmental liabilities budgeted for in 2015–16 are $6.9 million, comprising
$0.5 million for payables, $2.6 million for interest bearing liabilities and $3.8 million for
provisions.
Budgeted departmental statement of cash flows
The statement provides information on estimates of the extent and nature of cash flows
by categories and the expected cash flows against operating, investing and financing
activities. Forecast cash flows for the budget and forward estimates relate to general
operating activities to fund internally developed software projects.
Departmental statement of changes in equity
The statement shows the expected movement of equity during the budget year.
169
ARC Budget Statements
Departmental capital budget statement
The capital budget for the ARC principally relates to internally developed software to
enhance grant management and evaluation systems.
Schedule of budgeted income and expenses administered on behalf of
Government
The schedule shows the estimated expenses for programmes administered by the ARC
on behalf of the Government.
Total administered expenses budget in 2015–16 are $794.8 million, comprising
$789.7 million for grant expenses, representing research funding agreements for new
and ongoing research projects under the NCGP and $5.1 million for supplier expenses
reflecting the funding provided for the ERA, the Industrial Transformation Research
Programme and the Future Fellowships scheme.
Schedule of budgeted assets and liabilities administered on behalf of
Government
The schedule shows the estimated end of year position for assets and liabilities
administered by the ARC on behalf of the Government.
Total assets budgeted in 2015–16 are $1.3 million estimated GST receivable and
$0.3 million of non-financial assets.
Total liabilities budgeted in 2015–16 are $362.4 million, representing the balance of
payments under research funding agreements for new and ongoing research projects
for the calendar year 2016.
170
ARC Budget Statements
3.2.3 Budgeted financial statements tables
Table 3.2.1: Comprehensive income statement (showing net cost of
services) for the period ended 30 June
2014–15
Estimated
actual
$'000
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Finance costs
Total expenses
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
13,955
5,609
3,470
274
23,308
14,019
5,370
3,989
259
23,637
14,128
5,168
4,497
244
24,037
14,829
4,236
4,605
226
23,896
14,769
4,447
4,605
207
24,028
LESS:
OWN-SOURCE INCOME
Own-source revenue
Other
Total own-source revenue
88
88
88
88
88
88
88
88
88
88
Total own-source income
88
88
88
88
88
Net cost of/(contribution by) services
23,220
23,549
23,949
23,808
23,940
Revenue from Government
Surplus/(deficit) attributable to the
Australian Government
19,750
(3,470)
19,560
(3,989)
19,452
(4,497)
19,203
(4,605)
19,335
(4,605)
Total comprehensive income/(loss)
(3,470)
(3,989)
(4,497)
(4,605)
(4,605)
Total comprehensive income/(loss)
attributable to the Australian Government
(3,470)
(3,989)
(4,497)
(4,605)
(4,605)
2015–16
$'000
2016–17
$'000
2017–18
$'000
2018–19
$'000
Note: Impact of net cash appropriation arrangements
2014–15
$'000
Total comprehensive income/(loss)
excluding depreciation/amortisation
expenses previously funded through
revenue appropriations
less depreciation/amortisation expenses
previously funded through revenue
3,470
appropriations (a)
-
-
-
-
3,989
4,497
4,605
4,605
Total comprehensive income/(loss) - as per
(3,470)
(3,989)
(4,497)
(4,605)
(4,605)
the statement of comprehensive income
(a) From 2010–11, the Government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities
(and select corporate Commonwealth entities) were replaced with a separate capital budget (the
Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information
regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.
Prepared on Australian Accounting Standards basis.
171
ARC Budget Statements
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
299
8,893
299
8,893
299
8,893
299
8,893
299
8,893
Total financial assets
9,192
9,192
9,192
9,192
Non-financial assets
Land and buildings
Property, plant and equipment
Intangibles
Other non-financial assets
2,186
199
16,253
318
1,892
234
16,348
318
1,588
269
16,039
318
1,428
82
13,042
318
9,192
1,268
95
9,853
318
Total non-financial assets
18,956
18,792
18,214
14,870
11,534
Total assets
28,148
27,984
27,406
24,062
20,726
LIABILITIES
Payables
Suppliers
Total payables
Interest bearing liabilities
Leases
Total interest bearing liabilities
Provisions
Employee provisions
Other provisions
Total provisions
Total liabilities
516
516
2,575
2,575
3,531
322
3,853
516
516
2,575
2,575
3,531
322
3,853
516
516
2,575
2,575
3,531
322
3,853
516
516
2,575
2,575
3,531
322
3,853
516
516
2,575
2,575
3,531
322
3,853
6,944
6,944
6,944
6,944
6,944
Net assets
21,204
21,040
20,462
17,118
13,782
EQUITY*
Parent entity interest
Contributed equity
Reserves
Retained surplus (accumulated deficit)
Total parent entity interest
25,762
43
(4,601)
21,204
29,587
43
(8,590)
21,040
33,506
43
(13,087)
20,462
34,767
43
(17,692)
17,118
36,036
43
(22,297)
13,782
Total Equity
21,204
21,040
20,462
17,118
13,782
*
Equity is the residual interest in assets after the deduction of liabilities.
Prepared on Australian Accounting Standards basis.
172
ARC Budget Statements
Table 3.2.3: Departmental statement of changes in equity—summary of
movement (Budget year 2015–16)
Retained
earnings
$'000
Opening balance as at 1 July 2015
Balance carried forward from previous period
Comprehensive income
Surplus/(deficit) for the period
Total comprehensive income
(4,601)
Asset
revaluation
reserve
$'000
43
Other Contributed
reserves
equity/
capital
$'000
$'000
-
25,762
Total
equity
$'000
21,204
(3,989)
-
-
-
(3,989)
(3,989)
-
-
-
(3,989)
-
-
-
(3,989)
-
-
2,572
1,253
3,825
2,572
1,253
3,825
43
-
29,587
21,040
43
-
29,587
21,040
of which:
Attributable to the Australian Government
(3,989)
Transactions with owners
Contributions by owners
Equity Injection - Appropriation
Departmental Capital Budget (DCB)
Sub-total transactions with owners
Estimated closing balance as at
(8,590)
30 June 2016
Closing balance attributable to the
(8,590)
Australian Government
Prepared on Australian Accounting Standards basis.
173
ARC Budget Statements
Table 3.2.4: Budgeted departmental statement of cash flows
(for the period ended 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
Net GST received
19,750
550
19,560
550
19,452
550
19,203
550
19,335
550
Total cash received
20,300
20,110
20,002
19,753
19,885
Cash used
Employees
Suppliers
Borrowing costs
Net GST paid
13,955
5,521
274
550
14,019
5,282
259
550
14,128
5,080
244
550
14,829
4,148
226
550
14,769
4,359
207
550
Total cash used
20,300
20,110
20,002
19,753
19,885
-
-
-
-
-
3,869
3,825
3,919
1,261
1,269
3,869
3,825
3,919
1,261
1,269
(3,869)
(3,825)
(3,919)
(1,261)
(1,269)
Net cash from/(used by) operating
activities
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and
equipment
Total cash used
Net cash from/(used by) investing
activities
FINANCING ACTIVITIES
Cash received
Contributed equity
3,869
3,825
3,919
1,261
1,269
Total cash received
3,869
3,825
3,919
1,261
1,269
Net cash from/(used by) financing
activities
3,869
3,825
3,919
1,261
1,269
-
-
-
-
-
299
299
299
299
299
299
299
299
Net increase/(decrease) in cash held
Cash and cash equivalents at the
299
beginning of the reporting period
Cash and cash equivalents at the end
299
of the reporting period
Prepared on Australian Accounting Standards basis.
174
ARC Budget Statements
Table 3.2.5: Departmental capital budget statement (for the period ended
30 June)
2014–15
Estimated
actual
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Equity injections - Bill 2
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
1,264
2,605
1,253
2,572
1,253
2,666
1,261
-
1,269
-
3,869
3,825
3,919
1,261
1,269
3,869
3,825
3,919
1,261
-
3,869
3,825
3,919
1,261
-
Funded by capital appropriations (a)
2,605
2,572
2,666
-
-
Funded by capital appropriation - DCB (b)
1,264
1,253
1,253
1,261
1,269
TOTAL
RECONCILIATION OF CASH USED TO
ACQUIRE ASSETS TO ASSET MOVEMENT
TABLE
Total purchases
3,869
3,825
3,919
1,261
1,269
3,869
3,825
3,919
1,261
1,269
Total new capital appropriations
Provided for:
Purchase of non-financial assets
Total Items
PURCHASE OF NON-FINANCIAL ASSETS
Total cash used to acquire assets
3,869
3,825
3,919
1,261
1,269
Includes both current Bill 2 and prior Act 2/4/6 appropriations.
Does not include annual finance lease costs. Includes purchases from current and previous years'
Departmental Capital Budgets (DCBs).
Prepared on Australian Accounting Standards basis.
(a)
(b)
175
ARC Budget Statements
Table 3.2.6: Statement of asset movements (Budget year 2015–16)
Buildings
$'000
As at 1 July 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
Capital asset additions
Estimated expenditure on new or
replacement assets
By purchase - appropriation equity (a)
By purchase - appropriation ordinary
annual services (b)
Total additions
Other movements
Depreciation/amortisation expense
Total other movements
As at 30 June 2016
Gross book value
Accumulated depreciation/amortisation
and impairment
Closing net book balance
Other property,
plant and
equipment
$'000
3,004
(818)
Computer
software and
intangibles
$'000
Total
$'000
620
30,024
33,648
(421)
(13,771)
(15,010)
2,186
199
16,253
18,638
-
-
2,572
2,572
100
150
1,003
1,253
100
150
3,575
3,825
(394)
(115)
(3,480)
(3,989)
(394)
(115)
(3,480)
(3,989)
3,104
770
33,599
37,473
(1,212)
(536)
(17,251)
(18,999)
1,892
234
16,348
18,474
‘Appropriation equity’ refers to equity injections appropriations provided through Appropriation Bill
(No. 2) 2015–16, including CDABs.
(b) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)
2015–16 for depreciation/amortisation expenses, DCBs or other operational expenses.
Prepared on Australian Accounting Standards basis.
(a)
Table 3.2.7: Schedule of budgeted income and expenses administered on
behalf of Government (for the period ended 30 June)
EXPENSES
Suppliers
Grants
Total expenses administered on behalf of
Government
2014–15
Estimated
actual
$'000
2015–16
Budget
5,397
875,642
881,039
Prepared on Australian Accounting Standards basis.
176
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
5,156
789,659
5,146
751,223
5,116
783,607
5,238
792,307
794,815
756,369
788,723
797,545
$'000
ARC Budget Statements
Table 3.2.8: Schedule of budgeted assets and liabilities administered on
behalf of Government (as at 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
ASSETS
Financial assets
Taxation receivables
1,315
1,315
1,315
1,315
1,315
Total financial assets
1,315
1,315
1,315
1,315
1,315
Non-financial assets
Other non-financial assets
248
248
248
248
248
Total non-financial assets
248
248
248
248
248
Total assets administered on behalf of
Government
LIABILITIES
Payables
Suppliers
Grants
1,563
1,563
1,563
1,563
1,563
19
362,460
19
362,460
19
362,460
19
362,460
19
362,460
Total payables
362,479
362,479
362,479
362,479
362,479
Total liabilities administered on behalf
of Government
362,479
362,479
362,479
362,479
362,479
(360,916)
(360,916)
(360,916)
(360,916)
Net assets/(liabilities)
(360,916)
Prepared on Australian Accounting Standards basis.
Table 3.2.9: Schedule of budgeted administered cash flows
(for the period ended 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
OPERATING ACTIVITIES
Cash received
Net GST received
5,300
5,300
5,300
5,300
5,300
Total cash received
5,300
5,300
5,300
5,300
5,300
Cash used
Grant
Suppliers
Net GST paid
875,657
5,382
5,300
788,495
5,156
5,300
749,323
5,146
5,300
781,675
5,116
5,300
791,526
5,238
5,300
Total cash used
886,339
798,951
759,769
792,091
802,064
Net cash from/(used by) operating
activities
(881,039)
(793,651)
(754,469)
(786,791)
(796,764)
Net increase/(decrease) in cash held
(881,039)
(793,651)
(754,469)
(786,791)
(796,764)
-
-
-
-
793,651
754,469
786,791
796,764
-
-
-
-
Cash and cash equivalents at beginning of
reporting period
Cash from Official Public Account for:
- Appropriations
881,039
Cash and cash equivalents at end of
reporting period
Prepared on Australian Accounting Standards basis.
177
ARC Budget Statements
Table 3.2.10: Administered capital budget statement (for the period ended
30 June)
The ARC has no administered capital budget therefore table 3.2.10 is not presented.
Table 3.2.11: Statement of administered asset movements (Budget year
2015–16)
The ARC has no administered asset therefore table 3.2.11 is not presented.
3.2.4 Notes to the financial statements
The ARC budget statements have been prepared on an accrual accounting basis,
having regard to the Statement of Accounting Concepts, and in accordance with the
Financial Reporting Rule and the Australian Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board.
Departmental assets, liabilities, revenues and expenses are those items controlled by
the ARC that are used by the ARC in producing its outputs and include computer,
plant and equipment used in providing goods and services, liabilities for employee
entitlements, revenue from appropriations, and employee, supplier and depreciation
expenses incurred in providing agency outputs.
Administered items are those that the ARC does not control and which are subject to
prescriptive rules or conditions established by legislation or Australian Government
policy in order to achieve Australian Government outcomes. The ARC administers a
number of grant schemes. Grant liabilities are recognised to the extent that the grant
eligibility criteria or reporting requirements have been satisfied and is recorded when
the Government enters into an agreement to make these grants but the services have
not been performed or criteria satisfied.
178
Australian Skills Quality
Authority
Entity resources and planned
performance
179
AUSTRALIAN SKILLS QUALITY AUTHORITY
Section 1: Entity overview and resources .............................................................. 181
1.1
Strategic direction statement ........................................................................ 181
1.2
Entity resource statement ............................................................................. 184
1.3
Budget measures .......................................................................................... 184
Section 2: Outcomes and planned performance ................................................... 185
2.1
Outcomes and performance information ...................................................... 185
Section 3: Explanatory tables and budgeted financial statements ..................... 189
3.1
Explanatory tables ........................................................................................ 189
3.2
Budgeted financial statements...................................................................... 190
180
ASQA Budget Statements
AUSTRALIAN SKILLS QUALITY AUTHORITY
Section 1: Entity overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
The Australian Skills Quality Authority (ASQA) was established on 1 July 2011 by the
enactment of the National Vocational Education and Training Regulator Act 2011 and
supplementary legislation.
ASQA’s focus is on building a nationally consistent regulatory system that gives
confidence to stakeholders that vocational education and training providers, and
providers of English language courses to overseas students, offer quality training and
assessment services. ASQA works to ensure that this training is appropriate to meet
Australia’s social and economic needs for a highly educated and skilled population.
Further, ASQA is currently implementing a VET regulatory reform package that will
work to:

lower the regulatory burden and cost on high quality, fully compliant registered
training organisations (RTOs) through implementation of an earned autonomy
strategy

provide more support to RTOs who are trying to comply but have some
difficulties in fully meeting the national training standards required of RTOs
through education and information for RTOs

apply even more rigorous regulation of seriously non-compliant, poor quality
providers

further implement a modern risk-based regulatory approach moving the VET
regulatory trigger from the submission of an application by an RTO to better
identifying and managing risk.
Earlier this financial year, the Government committed an additional $68 million over
four years to progress this regulatory reform package. This funding commitment is
reflected in the statements.
Key facets of ASQA’s regulatory approach include:
a. Targeted, risk-based regulation

ASQA’s principles for regulating the sector include employing risk-based,
targeted regulation that focuses on poor quality providers. Resources are
targeted to areas that pose the greatest risk to quality vocational education
and training
181
ASQA Budget Statements



in line with international best practice, ASQA’s regulation seeks to
anticipate potential problems. ASQA assesses risk to quality by drawing on
information derived from national data, and intelligence from our
collaborative partnerships with stakeholders
through this risk-focused approach, ASQA is able to minimise regulatory
interventions for providers that consistently demonstrate that their
operations fully comply with the national standards
ASQA identifies and targets critical factors needing change to improve
training outcomes in specific industry sectors through its programme of
Strategic Reviews. These reviews draw on ASQA’s strong partnerships with
industry, employers and other regulators.
b. Ensuring that training meets the needs of industry


c.
Australian businesses need a skilled workforce. Through an industry-led
approach to the development of training packages, industry defines the
skills required by the labour market. ASQA ensures that registered training
organisations are meeting the requirements of these industry-developed
training packages, so that vocational education and training graduates have
the contemporary work skills required for employment
ASQA works to achieve a balance between the wider interest of Australian
industry and Australian employers and the specific interests of the
vocational education industry.
Decisive action in cases of serious risk to the vocational education and training
sector, particularly with respect to issues that affect industry and students

sanctions against providers are proportionate to the impact of the noncompliance. ASQA’s regulatory interventions scale according to the nature
and extent of issue under consideration. For minor issues ASQA may
employ written directions, reduce or place conditions on a provider’s scope
of registration or issue infringement notices. For serious cases, where the
risks to the quality and reputation of Australia’s training sector are
significant, ASQA may pursue criminal/civil proceedings, act to suspend a
provider’s registration or act to cancel a provider’s registration entirely.
ASQA’s objectives are to:
a. provide for national consistency in the regulation of vocational education and
training
b. regulate vocational education and training using:
i. a standards-based quality framework
ii. risk assessments, where appropriate
c. protect and enhance:
i. quality, flexibility and innovation in vocational education and training
182
ASQA Budget Statements
ii. Australia’s reputation for vocational education and training nationally
and internationally
d. provide a regulatory framework that encourages and promotes a vocational
education and training system that is appropriate to meet Australia’s social
and economic needs for a highly educated and skilled population
e. protect students undertaking, or proposing to undertake, Australian
vocational education and training by ensuring the provision of quality
vocational education and training
f. facilitate access to accurate information relating to the quality of vocational
education and training.
In 2015–16 ASQA will focus on:
a. implementing the recommendations from ASQA’s second tranche of strategic
industry reviews focusing on:
i. training for child care and early childhood learning
ii. training for horse riding
iii. training for the security industry
b. finalising the programme of audits associated with ASQA’s review of VET
FEE-HELP providers
c. finalising and implementing ASQA’s new risk model
d. undertaking stage one of the roll-out of a new information and communication
technology system, which will make it easier for providers to manage their
registrations online in future years
e. commencing a third tranche of strategic reviews following consultation with
the Minister
f. working to implement regulatory reform initiatives as determined by
government.
183
ASQA Budget Statements
1.2
ENTITY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources will be applied by outcome and by administered and departmental
classification.
Table 1.1: ASQA resource statement—Budget estimates for 2015–16 as at
Budget May 2015
Actual Estimate of prior
Available
year amounts
Appropriation
available in
2014–15
2015–16
$'000
$'000
Ordinary annual services (a)
Departmental appropriation
Prior year appropriations (b)
Departmental appropriation (c)
s74 Retained revenue receipts (d)
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
$'000
17,849
40,218
1,500
19,303
-
38,632
-
19,303
38,632
-
59,567
19,303
38,632
57,935
59,567
19,303
38,632
57,935
3,473
-
3,744
3,744
3,473
-
3,744
3,744
3,473
-
3,744
3,744
Total available annual appropriations
[A+B]
63,040
19,303
42,376
61,679
Total net resourcing for ASQA
63,040
19,303
42,376
61,679
Total
Total ordinary annual services [A]
Other services (e)
Departmental non-operating
Equity injections
Total
Total other services [B]
(a)
(b)
(c)
Appropriation Bill (No. 1) 2015–16.
Estimated adjusted balance carried forward from previous year.
Includes an amount of $1.389m (2014–15: $1.632m) for the Departmental Capital Budget (refer to
Table 3.2.5 for further details). For accounting purposes this amount has been designated as
‘contributions by owners’.
(d) Estimated Retained revenue receipts under section 74 of the PGPA Act (2014–15: section 31 of the
FMA Act).
(e) Appropriation Bill (No. 2) 2015–16.
Note: All figures are GST exclusive.
1.3
BUDGET MEASURES
ASQA does not have any new budget measures, therefore Table 1.2 is not presented.
The funding commitment provided for the VET regulatory reform strategy was
presented in the Portfolio Additional Estimates Statements 2014–15.
184
ASQA Budget Statements
Section 2: Outcomes and planned performance
2.1
OUTCOMES AND PERFORMANCE INFORMATION
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programmes are the
primary vehicle by which government entities achieve the intended results of their
outcome statements. Entities are required to identify the programmes which contribute
to government outcomes over the Budget and forward years.
Each outcome is described below together with its related programmes, specifying the
performance indicators and targets used to assess and monitor the performance of
ASQA in achieving government outcomes.
Outcome 1: Contribute to a high quality vocational education and training sector,
including through streamlined and nationally consistent regulation of training
providers and courses, and the communication of advice to the sector on
improvements to the quality of vocational education and training.
Outcome 1 strategy
ASQA’s focus is on building a nationally consistent regulatory system that will give
confidence to stakeholders that vocational education and training (VET) providers
(including Commonwealth Register of Institutions and Courses for Overseas Students
(CRICOS) providers and English Language Intensive Courses for Overseas Students
(ELICOS) providers) offer quality training and assessment as well as services that are
appropriate to meet Australia’s social and economic needs for a highly educated and
skilled population.
ASQA will build consistent regulatory practices by strengthening our targeted, riskbased approach. We will do this by drawing on information derived from improved
national data, and intelligence from our collaborative partnerships with critical
stakeholders. We will use this to inform our regulatory practice and to build a
consistent approach that encourages a sector-wide culture of compliance.
185
ASQA Budget Statements
Outcome expense statement
Table 2.1 provides an overview of the total expenses for Outcome 1 by programme.
Table 2.1: Budgeted expenses for Outcome 1
Outcome 1: Contribute to a high quality vocational education and
training sector, including through streamlined and nationally consistent
regulation of training providers and courses, and the communication of
advice to the sector on improvements to the quality of vocational
education and training.
Programme 1.1: Regulation and advice
Departmental expenses
Departmental appropriation (a)
Expenses not requiring appropriation in the Budget year (b)
Total for programme 1.1
Outcome 1 Totals by appropriation type
Departmental expenses
Departmental appropriation (a)
Expenses not requiring appropriation in the Budget year (b)
Total expenses for Outcome 1
2014–15
Estimated
actual
expenses
$'000
2015–16
Estimated
expenses
$'000
38,586
3,811
37,243
4,450
42,397
41,693
38,586
3,811
37,243
4,450
42,397
41,693
2014–15
2015–16
205
213
Average staffing level (number)
(a) Departmental Appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and
‘Revenue from independent sources (s 74)’.
(b) Expenses not requiring appropriation in the Budget year are made up of depreciation and amortisation.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of
the Budget year as government priorities change.
186
ASQA Budget Statements
Programme 1.1: Regulation and Advice
Programme objective
To assure the quality of VET outcomes through national regulation and the
communication of advice on vocational education and training.
Programme expenses
ASQA’s programme expenses may be affected by:

significant unforeseeable issues emerging within the regulated community
requiring the Authority’s intervention

costs associated with new enforcement activities.
Programme expenses 1.1 Regulation and Advice
2014–15
Estimated
actual
$'000
Annual departmental expenses:
Departmental item
Expenses not requiring appropriation in the
Budget year (a)
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
38,586
37,243
35,506
34,052
34,279
3,811
4,450
3,230
3,184
3,028
Total programme expenses
42,397
41,693
38,736
37,236
37,307
(a) Expenses not requiring appropriation in the Budget year are made up of depreciation and amortisation
expenses.
187
ASQA Budget Statements
Programme 1.1 deliverables

registered training organisations (RTOs) that meet national standards

accredit courses that meet national standards

monitor and enforce compliance

provide advice to and make recommendations to the Portfolio Minister, and/or
state and territory Ministers and/or the Ministerial Council on matters relating to
VET

collect, analyse, interpret and disseminate information about VET and the
performance of RTOs.
Programme 1.1 key performance indicators

number of initial and renewal applications accepted/rejected

number of courses accredited

number of providers subject to high risk monitoring

number of RTOs to which written directions, conditions, sanctions, offences or
civil penalties were applied

stakeholder perception of ASQA’s performance of its statutory functions.
ASQA does not set targets in relation to the performance of its regulatory functions.
ASQA will however track the above functions from year to year and provide a
qualitative discussion of the data collected through its annual reports.
188
ASQA Budget Statements
Section 3: Explanatory tables and budgeted financial
statements
Section 3 presents explanatory tables and budgeted financial statements which provide
a comprehensive snapshot of entity finances for the 2015–16 Budget year. It explains
how budget plans are incorporated into the financial statements and provides further
details of the reconciliation between appropriations and programme expenses,
movements in administered funds, special accounts and government Indigenous
expenditure.
3.1
EXPLANATORY TABLES
3.1.1 Movement of administered funds between years
ASQA has no movement of funds, therefore table 3.1.1 is not presented.
3.1.2 Special accounts
ASQA has no Special accounts, therefore table 3.1.2 is not presented.
3.1.3 Australian Government Indigenous Expenditure
The 2015–16 Australian Government Indigenous Expenditure table is not applicable
because ASQA has no Indigenous specific expenses.
189
ASQA Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in entity resourcing and financial statements
There are no material variances between the entity resources table and the financial
statements.
3.2.2 Analysis of budgeted financial statements
Departmental
ASQA is budgeting for an operating loss in 2015–16, reflecting the value of unfunded
depreciation expenses.
Total expenses other than depreciation are estimated to be $37.2 million and include
expenses for the VET reform initiatives in its second year.
Total assets at the end of 2015–16 are estimated to be $29.9 million, comprising
$19.3 million accrued appropriation, $10.2 million in non-financial assets and
$0.3 million in cash. The majority of non-financial assets are IT business systems and
property fit outs.
Total liabilities at the end of 2015–16 are estimated to be $8.0 million, with employee
entitlements comprising $5.1 million.
Capital acquisitions in 2015–16 are planned to be $5.1 million, predominantly for
ongoing development of IT systems ($3.7 million).
Administered
Revenue estimate for 2015–16 is $19.4 million which is $0.7 million lower than the
forecast revenue for 2014–15, and $15.0 million lower than was proposed in the
2014–15 Budget Papers. The reduction reflects the progressive implementation of the
Government’s VET reforms, which commenced in 2014–15. The VET reforms
announced in the 2014–15 PAES capped cost recovery at 50 per cent of the cost of
ASQA’s operations rather than the previously announced 100 per cent cost recovery.
This is reflected in the forward estimates of the Administered revenue profile.
190
ASQA Budget Statements
3.2.3 Budgeted financial statements tables
Table 3.2.1: Comprehensive income statement (showing net cost of
services) for the period ended 30 June
2014–15
Estimated
actual
$'000
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Total expenses
LESS:
OWN-SOURCE INCOME
Own-source revenue
Other
Total own-source revenue
Total own-source income
Net cost of/(contribution by) services
Revenue from Government
Surplus/(deficit) attributable to the
Australian Government
Total comprehensive income/(loss)
attributable to the Australian Government
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
25,436
13,150
3,811
42,397
25,058
12,185
4,450
41,693
22,848
12,658
3,230
38,736
21,158
12,894
3,184
37,236
21,304
12,975
3,028
37,307
1,500
1,500
-
-
-
-
1,500
-
-
-
-
40,897
38,586
41,693
37,243
38,736
35,506
37,236
34,052
37,307
34,279
(2,311)
(4,450)
(3,230)
(3,184)
(3,028)
(2,311)
(4,450)
(3,230)
(3,184)
(3,028)
(2,311)
(4,450)
(3,230)
(3,184)
(3,028)
(2,311)
(4,450)
(3,230)
(3,184)
(3,028)
Note: Impact of net cash appropriation arrangements
Total comprehensive income/(loss)
excluding depreciation/amortisation
expenses previously funded through
revenue appropriations.
less depreciation/amortisation expenses
previously funded through revenue
appropriations (a)
Total comprehensive income/(loss) - as
per the statement of comprehensive
income
(a)
From 2010–11, the Government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation and amortisation expenses were replaced with a separate capital
budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For
information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.
Prepared on Australian Accounting Standards basis.
191
ASQA Budget Statements
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
295
19,516
295
19,379
295
15,569
295
12,419
295
12,419
Total financial assets
19,811
19,674
15,864
12,714
12,714
2,687
332
6,502
565
469
9,170
1,347
663
8,737
1,967
488
8,408
738
321
8,028
Non-financial assets
Land and buildings
Property, plant and equipment
Intangibles
Total non-financial assets
9,521
10,204
10,747
10,863
9,087
Total assets
29,332
29,878
26,611
23,577
21,801
LIABILITIES
Payables
Suppliers
2,341
2,381
2,501
2,201
2,309
Total payables
2,341
2,381
2,501
2,201
2,309
Provisions
Employee provisions
Other provisions
5,075
741
5,075
564
5,075
305
5,244
108
5,244
-
Total provisions
5,816
5,639
5,380
5,352
5,244
Total liabilities
8,157
8,020
7,881
7,553
7,553
21,175
21,858
18,730
16,024
14,248
24,700
69
(8,745)
16,024
16,024
25,952
69
(11,773)
14,248
14,248
Net assets
EQUITY*
Parent entity interest
Contributed equity
18,987
24,120
24,222
Reserves
69
69
69
Retained surplus (accumulated deficit)
2,119
(2,331)
(5,561)
Total parent entity interest
21,175
21,858
18,730
Total Equity
21,175
21,858
18,730
*
’Equity’ is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
192
ASQA Budget Statements
Table 3.2.3: Departmental statement of changes in equity—summary of
movement (Budget year 2015–16)
Retained
earnings
$'000
Asset Contributed
revaluation
equity/
reserve
capital
$'000
$'000
Total
equity
$'000
Opening balance as at 1 July 2015
Balance carried forward from previous period
2,119
69
18,987
21,175
Adjusted opening balance
2,119
69
18,987
21,175
Comprehensive income
Other comprehensive income
Surplus/(deficit) for the period
(4,450)
-
-
(4,450)
Total comprehensive income
(4,450)
-
-
(4,450)
-
-
3,744
1,389
5,133
3,744
1,389
5,133
(2,331)
69
24,120
21,858
(2,331)
69
24,120
21,858
Contributions by owners
Equity Injection - Appropriation
Departmental Capital Budget (DCB)
Sub-total transactions with owners
Estimated closing balance as at
30 June 2016
Closing balance attributable to the
Australian Government
Prepared on Australian Accounting Standards basis.
193
ASQA Budget Statements
Table 3.2.4: Budgeted departmental statement of cash flows
(for the period ended 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
Other
37,132
1,500
37,380
-
39,316
-
37,202
-
34,279
-
Total cash received
38,632
37,380
39,316
37,202
34,279
Cash used
Employees
Suppliers
25,809
12,823
25,058
12,322
22,848
12,797
20,989
13,391
21,304
12,975
Total cash used
38,632
37,380
35,645
34,380
34,279
-
-
3,671
2,822
-
Net cash from/(used by) operating
activities
INVESTING ACTIVITIES
Cash used
Purchase of property, plant, equipment
and intangibles
5,105
5,133
3,773
3,300
1,252
Total cash used
5,105
5,133
3,773
3,300
1,252
(5,133)
(3,773)
(3,300)
(1,252)
Net cash from/(used by) investing
(5,105)
activities
FINANCING ACTIVITIES
Cash received
Contributed equity
5,105
Total cash received
5,105
Net cash from/(used by) financing
5,105
activities
Net increase/(decrease) in cash held
Cash and cash equivalents at the
295
beginning of the reporting period
Cash and cash equivalents at the end
295
of the reporting period
Prepared on Australian Accounting Standards basis.
194
5,133
5,133
102
102
478
478
1,252
1,252
5,133
102
478
1,252
-
-
-
-
295
295
295
295
295
295
295
295
ASQA Budget Statements
Table 3.2.5: Departmental capital budget statement (for the period ended
30 June)
2014–15
Estimated
actual
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Equity injections - Bill 2
Total new capital appropriations
Provided for:
Purchase of non-financial assets
Total Items
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
1,632
3,473
1,389
3,744
102
478
1,252
-
5,105
5,133
102
478
1,252
5,105
5,133
102
478
1,252
5,105
5,133
102
478
1,252
3,473
3,744
102
478
-
1,632
1,389
-
-
1,252
PURCHASE OF NON-FINANCIAL ASSETS
Funded by capital appropriations
(a)
Funded by capital appropriation - DCB
Funded internally from departmental
resources (c)
(b)
TOTAL
RECONCILIATION OF CASH USED TO
ACQUIRE ASSETS TO ASSET MOVEMENT
TABLE
Total purchases
-
-
3,671
2,822
-
5,105
5,133
3,773
3,300
1,252
5,105
5,133
3,773
3,300
1,252
Total cash used to acquire assets
5,105
5,133
3,773
3,300
1,252
(a) Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.
(b) Does not include annual finance lease costs. Includes purchases from current and previous years’
Departmental Capital Budgets (DCBs).
(c) Includes the following sources of funding:
- current Bill 1 and prior year Act 1 and Act 3 appropriations (excluding amounts from the DCB)
- internally developed assets
- s74 Retained revenue receipts.
Prepared on Australian Accounting Standards basis.
195
ASQA Budget Statements
Table 3.2.6: Statement of asset movements (Budget year 2015–16)
Buildings
$'000
As at 1 July 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
Capital asset additions
Estimated expenditure on new or
replacement assets
By purchase - appropriation equity (a)
By purchase - appropriation ordinary
annual services (b)
Total additions
Other movements
Depreciation/amortisation expense
Total other movements
As at 30 June 2016
Gross book value
Accumulated depreciation/amortisation
and impairment
Other property,
plant and
equipment
$'000
Computer
software and
intangibles
$'000
Total
$'000
6,460
560
10,194
17,214
(3,773)
(228)
(3,692)
(7,693)
2,687
332
6,502
9,521
-
261
3,483
3,744
-
-
1,389
1,389
-
261
4,872
5,133
(2,122)
(124)
(2,204)
(4,450)
(2,122)
(124)
(2,204)
(4,450)
6,460
821
15,066
22,347
(5,895)
(352)
(5,896)
(12,143)
Closing net book balance
565
469
9,170
10,204
(a) ‘Appropriation equity’ refers to equity injections appropriations provided through Appropriation Bill
(No. 2) 2015–16, including Collection Development Acquisition Budgets (CDABs).
(b) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)
2015–16 for depreciation/amortisation expenses, DCBs or other operational expenses.
Prepared on Australian Accounting Standards basis.
Table 3.2.7: Schedule of budgeted income and expenses administered on
behalf of Government (for the period ended 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
OWN-SOURCE INCOME
Own-source revenue
Non-taxation revenue
Fees and fines
Other revenue
20,083
70
19,349
70
18,624
70
17,863
70
17,985
70
Total non-taxation revenue
20,153
19,419
18,694
17,933
18,055
Total own-source revenue administered
on behalf of Government
20,153
19,419
18,694
17,933
18,055
Total own-sourced income administered
on behalf of Government
20,153
19,419
18,694
17,933
18,055
Net cost of/(contribution by) services
20,153
19,419
18,694
17,933
18,055
Total comprehensive income/(loss)
20,153
Prepared on Australian Accounting Standards basis.
19,419
18,694
17,933
18,055
196
ASQA Budget Statements
Table 3.2.8: Schedule of budgeted assets and liabilities administered on
behalf of Government (as at 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
ASSETS
Financial assets
Trade and other receivables
247
247
247
247
247
Total financial assets
247
247
247
247
247
247
247
247
247
235
235
235
235
235
235
235
235
235
235
235
235
12
12
12
12
Total assets administered on behalf of
247
Government
Provisions
Other provisions
235
Total provisions
235
Total liabilities administered on behalf
235
of Government
Net assets/(liabilities)
12
Prepared on Australian Accounting Standards basis.
Table 3.2.9: Schedule of budgeted administered cash flows
(for the period ended 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
OPERATING ACTIVITIES
Cash received
Fees and fines
Other
20,083
70
19,349
70
18,624
70
17,863
70
17,985
70
Total cash received
20,153
19,419
18,694
17,933
18,055
19,419
18,694
17,933
18,055
19,419
18,694
17,933
18,055
(19,419)
(19,419)
(18,694)
(18,694)
(17,933)
(17,933)
(18,055)
(18,055)
Net cash from/(used by) operating
20,153
activities
Net increase/(decrease) in cash held
20,153
Cash to Official Public Account for:
- Appropriations
(20,153)
Total cash to Official Public Account
(20,153)
Cash and cash equivalents at end of
reporting period
Prepared on Australian Accounting Standards basis.
-
-
-
-
Table 3.2.10: Administered capital budget statement (for the period ended
30 June)
ASQA has no Administered capital budget, therefore Table 3.2.10 is not presented.
Table 3.2.11: Statement of administered asset movements (Budget year
2015–16)
ASQA has no Administered asset movements, therefore Table 3.2.11 is not presented.
197
ASQA Budget Statements
3.2.4 Notes to the financial statements
Accounting Policy
The entity budget statements have been prepared in accordance with the requirements
of the Public Governance, Performance and Accountability (Financial Reporting) Rule
2015 (FRR) issued by the Minister for Finance.
The statements have been prepared:

on an accrual accounting basis

in compliance with Australian Accounting Standards issued by the Australian
Accounting Standards Board.
Departmental Revenue from Government
Revenue from Government represents Government’s purchase of outputs from ASQA.
The changes reflected in the ordinary annual appropriations are predominantly a
result of measures and variations that are explained in Section 1: Entity overview and
resources, variations and measures.
Departmental Expenses—Employees
This item represents payments made—and net increases or decreases in entitlements
owed—to employees for their services provided in the financial year.
Departmental Expenses—Suppliers
This item represents payments to suppliers for goods and services.
Departmental Expenses—Depreciation and Amortisation
Infrastructure, plant and equipment assets are written-off to their estimated residual
values over their estimated useful lives using, in all cases, the straight-line method of
depreciation. Leasehold improvements are amortised on a straight-line basis over the
lesser of the estimated useful life of the improvements or the unexpired period of the
lease.
Departmental Assets—Financial Assets—Receivables
Receivables mainly represent amounts owing to ASQA as cash reserves held in the
Official Public Account.
Departmental Assets—Non-Financial Assets
ASQA’s non-financial assets include leasehold improvements (fitout), ICT Business
systems (software), and ICT equipment.
These items represent future economic benefits that ASQA will consume in producing
outputs. Apart from re-valued assets, the reported value represents the purchase price
paid, less depreciation incurred to date in using that asset.
198
ASQA Budget Statements
Infrastructure, plant and equipment is initially brought to account at cost, except for
purchases costing less than $10,000 for leasehold improvements and $2000 for all other
classes, which are expensed in the year of acquisition (other than where they form part
of a group of similar items that are significant in total).
Computer software is expensed in the year of acquisition except for purchases or
internally developed software costing more than $2000—which is capitalised at cost.
ASQA will annually reassess and adjust the values of infrastructure, plant and
equipment.
Departmental Liabilities—Provisions—Employees
Provision has been made for ASQA’s liability for employee entitlements arising from
services rendered by employees up to the balance date. This liability encompasses
wages and salaries that are yet to be paid, plus annual and long service leave. No
provision is made for sick leave.
Employee entitlements payable are measured as the present value of the estimated
future cash outflows to be made in respect of services provided by employees up to the
reporting date. Liabilities expected to be settled within twelve months are measured at
the nominal amount.
Administered Revenue
Administered revenue represents fees and charges for ASQA’s regulatory activities.
This money is transferred to the Government (via the Official Public Account) as and
when it is received.
199
200
Tertiary Education Quality and
Standards Agency
Entity resources and planned
performance
201
TERTIARY EDUCATION QUALITY AND STANDARDS
AGENCY
Section 1: Entity Overview and Resources ............................................................ 203
1.1
Strategic Direction Statement ....................................................................... 203
1.2
Entity Resource Statement ........................................................................... 206
1.3
Budget Measures .......................................................................................... 207
Section 2: Outcomes and Planned Performance ................................................... 208
2.1
Outcomes and Performance Information ...................................................... 208
Section 3: Explanatory Tables and Budgeted Financial Statements ................... 212
3.1
Explanatory Tables ....................................................................................... 212
3.2
Budgeted Financial Statements .................................................................... 213
202
TEQSA Budget Statements
TERTIARY EDUCATION QUALITY AND STANDARDS
AGENCY
Section 1: Entity Overview and Resources
1.1
STRATEGIC DIRECTION STATEMENT
The Tertiary Education Quality and Standards Agency (TEQSA) is Australia’s national
higher education quality assurance and regulatory agency. TEQSA was established
under the Tertiary Education Quality and Standards Agency Act 2011 (the Act) and
commenced regulatory functions on 29 January 2012.
The Act confers powers and functions on TEQSA to:

register regulated entities as registered higher education providers and accredit
courses of study

conduct compliance assessments and quality assessments

conduct accreditation assessments of accredited courses

provide advice and make recommendations to the Minister on matters relating to
the quality or regulation of higher education providers

collect, analyse, interpret and disseminate information relating to quality
assurance practice and quality improvement in higher education

cooperate with similar agencies in other countries.
TEQSA also has responsibility, as a designated authority under the Education Services
for Overseas Students Act 2000, for English Language Intensive Course for Overseas
Students providers if they have an entry arrangement with a registered higher
education provider, and for Foundation Programme providers.
TEQSA’s strategic priorities
TEQSA’s vision is to be recognised in Australia and internationally for its effective,
responsive and risk-reflective approach to standards based quality assurance.
In pursuit of this vision, key strategic priorities are identified for action over the next
triennium, including:

protect the quality of Australian higher education and its reputation domestically
and overseas

deliver efficient, effective and responsive quality assurance
203
TEQSA Budget Statements

continue to develop organisational capability and maximise organisational
efficiency.
These priorities will be addressed by further enhancement of TEQSA’s annual risk
assessments and increased flexibility of approaches to provider assessment. The
successful case management model will be maintained and emphasis will continue to
be placed on engagement and communication with higher education providers.
Changes to the Act
The then Minister for Education introduced the Tertiary Education Quality and
Standards Agency Amendment Bill 2014 on 27 February 2014 to enable TEQSA to
implement more efficient and effective processes around its provider registration and
course accreditation functions. The Bill was passed by Parliament on 4 December 2014
and enables TEQSA to:

improve its operational efficiency through greater delegation of its functions and
powers to single commissioners and to TEQSA staff, increasing the scope for
providers to seek internal review of decisions made under delegation from TEQSA

extend, on its own initiative, the period of registration and accreditation to support
more efficient quality assurance practices and help reduce the burden on
providers.
The amendments also separate the roles of Chief Executive Officer and Chief
Commissioner to allow the Chief Executive Officer to focus on the management and
administration of TEQSA and the Chief Commissioner to focus on delivering timely
provider registration and course accreditation decisions.
TEQSA’s development and progress
During 2014–15, with input from the TEQSA Advisory Council and the higher
education sector, TEQSA has continued to review its key processes including a
reduced scope of assessment for renewal of registration processes and streamlined
evidentiary requirements of providers when preparing applications for renewal of
registration, course accreditation and renewal of accreditation.
In addition, the agency significantly remodelled its risk assessment framework,
following sector wide consultation. This has reduced the burden on higher education
providers by using risk assessments to inform a differentiated approach to evidence
and reporting requirements in assessment processes (e.g. for renewal of registration
and course accreditation applications).
TEQSA introduced a ‘Core +’ model for renewal of registration processes (and
partially for course accreditation) that substantially reduced evidence requirements
and application assessment times for low risk providers.
204
TEQSA Budget Statements
TEQSA proposes to further reduce evidence requirements for many providers and is
currently consulting with the higher education sector on further developing this riskbased model to extend it fully to course accreditation for existing providers.
Key improvements also include a simplified design of the risk assessment framework,
focusing on students, staff, finance and regulatory history, greater flexibility for
different provider models, and improved information for providers. TEQSA
significantly reduced the data collection requirements in 2014 and exempted
universities from the information collection on the basis that all information required
from them by TEQSA is available through the Department of Education and Training’s
Higher Education Information Management Systems (HEIMS). TEQSA is working
with the Department of Education and Training to identify potential areas for further
rationalisation of provider information collection and reporting as part of the
development of an integrated higher education data collection.
TEQSA introduced a provider portal in the first half of 2014 to allow higher education
providers to lodge applications online. In the second half of 2014, this was extended to
external experts to facilitate interaction with TEQSA online and for providers to lodge
the 2014 provider information requirements.
The ongoing streamlining of quality assurance processes introduced in 2014–15
continues to encourage a culture of self-assurance by providers and aim to reduce:

reporting requirements for all higher education providers

duplication of requirements across regulatory bodies

time taken to make quality assurance assessments.
205
TEQSA Budget Statements
1.2
ENTITY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources will be applied by outcome and by administered and departmental
classification.
Table 1.1: Tertiary Education Quality and Standards Agency resource statement
—Budget estimates for 2015–16 as at Budget May 2015
Actual Estimate of prior
Available
year amounts
Appropriation
available in
2014–15
2015–16
$'000
$'000
Ordinary annual services (a)
Departmental appropriation
Prior year appropriations (b)
Departmental appropriation (c)
s74 Retained revenue receipts (d)
Total
Total ordinary annual services [A]
6,768
16,501
15
5,700
15
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
$'000
12,328
15
18,028
30
23,284
5,715
12,343
18,058
23,284
5,715
12,343
18,058
-
-
-
-
(e)
Other services
Departmental non-operating
Prior year appropriations (b)
Equity injections
Total
-
-
-
-
-
-
-
-
23,284
5,715
Total other services [B]
Total available annual appropriations
[A+B]
Actual Estimate of prior
Available
year amounts
Appropriation
available in
2014–15
2015–16
$'000
$'000
Special appropriations
Special appropriations limited by
criteria/entitlement
Public Governance, Performance and
Accountability Act 2013 - s77 (f)
12,343
18,058
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
$'000
200
-
200
200
Total special appropriations [C]
Total appropriations excluding special
accounts
200
23,484
5,715
200
12,543
200
18,258
Total resourcing [A+B+C]
23,484
5,715
12,543
18,258
Total net resourcing for TEQSA
23,484
5,715
12,543
18,258
(a) Appropriation Bill (No. 1) 2015–16.
(b) Estimated adjusted balance carried forward from previous year.
(c) Includes an amount of $0.893m for the Departmental Capital Budget (refer to table 3.2.5 for further
details). For accounting purposes this amount has been designated as ‘contributions by owners’.
(d) Estimated retained revenue receipts under section 74 of the PGPA Act.
(e) Appropriation Bill (No. 2) 2015–16.
(f) Repayments not provided for under other appropriations. Amounts received on or before 30 June 2014
were repaid under section 28 of the Financial Management and Accountability Act 1997.
Note: All figures are GST exclusive.
206
TEQSA Budget Statements
1.3
BUDGET MEASURES
Budget measures relating to TEQSA are detailed in Budget Paper No. 2 and are
summarised below:
Table 1.2: Entity 2015–16 Budget measures
Part 2: MYEFO measures not previously reported in a portfolio statement
Programme
Measure
Communications and Public Affairs
Departmental expenses
(a)
2014–15 2015–16 2016–17 2017–18 2018–19
$'000
$'000
$'000
$'000
$'000
1.1
Total
Total measures
Departmental
(15)
(30)
(30)
(30)
-
(15)
(30)
(30)
(30)
-
(15)
(30)
(30)
(30)
-
Total
(15)
(30)
(30)
(30)
(a) The Communications and Public Affairs target savings was announced in the 2014–15 Budget
Prepared on a Government Finance Statistics (fiscal) basis
207
-
TEQSA Budget Statements
Section 2: Outcomes and planned performance
2.1
OUTCOMES AND PERFORMANCE INFORMATION
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programmes are the
primary vehicle by which Government entities achieve the intended results of their
outcome statements. Entities are required to identify the programmes which contribute
to Government outcomes over the Budget and forward years.
Each outcome is described below together with its related programmes, specifying the
performance indicators and targets used to assess and monitor the performance of
TEQSA in achieving Government outcomes.
Outcome 1: Contribute to a high quality higher education sector through streamlined
and nationally consistent higher education regulatory arrangements; registration of
higher education providers; accreditation of higher education courses; and
investigation, quality assurance and dissemination of higher education standards and
performance.
Outcome 1 strategy
TEQSA has one outcome. TEQSA will work to achieve this outcome by:

delivering effective and timely regulation

reinforcing protection for students undertaking an Australian higher education
award

supporting the capacity of all providers to quality assure their delivery of higher
education

continuing to strengthen and streamline TEQSA’s approach to quality assurance
and regulation

consulting with peak bodies, higher education providers, the Higher Education
Standards Panel and other key stakeholders to promote shared understanding

continuing to strengthen information sharing arrangements with relevant agencies
and organisations

maximising TEQSA’s operational efficiency.
TEQSA contributes to building a national higher education system that meets
Australia’s future needs for an educated and skilled population, and maintains
Australia’s international reputation for providing quality higher education in a
demand-driven system.
208
TEQSA Budget Statements
Recognising the significant budget reductions in 2014–15 and forward years, TEQSA
will continue to review its operations to ensure that its quality assurance and
regulation activities are undertaken in the most efficient way possible, maintaining
high levels of quality, in order to minimise any impact on Outcome 1.
Outcome expense statement
Table 2.1 provides an overview of the total expenses for Outcome 1 by programme.
Table 2.1: Budgeted Expenses for Outcome 1
Outcome 1: Contribute to a high quality higher education sector through
streamlined and nationally consistent higher education regulatory
arrangements; registration of higher education providers; accreditation of
higher education courses; and investigation, quality assurance and
dissemination of higher education standards and performance.
Programme 1.1: Regulation and Quality Assurance
Departmental expenses
Departmental appropriation (a)
Expenses not requiring appropriation in the Budget year
Total for programme 1.1
Outcome 1 Totals by appropriation type
Departmental expenses
Departmental appropriation (a)
Expenses not requiring appropriation in the Budget year
Total expenses for Outcome 1
(b)
(b)
2014–15
Estimated
actual
expenses
$'000
2015–16
Estimated
expenses
$'000
15,623
1,702
11,476
1,123
17,325
12,599
15,623
1,702
11,476
1,123
17,325
12,599
2014–15
2015–16
Average staffing level (number)
71
60
(a) Departmental Appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue
from independent sources (s74).
(b) Expenses not requiring appropriation in the Budget year are made up of Depreciation Expenses,
Amortisation Expenses and Audit Fees.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of
the budget year as government priorities change.
209
TEQSA Budget Statements
Programme 1.1: Regulation and Quality Assurance
Programme objective
The objectives for this programme are to:

assure the quality of Australian higher education through a standards based and
risk based approach to quality assurance

protect students by requiring providers to meet minimum standards for quality
higher education provision in an expanding higher education system

facilitate higher education providers to pursue their individual missions, and
encourage diversity, excellence and innovation in the sector.
Programme expenses
The 2014–15 Budget significantly reduced funding for TEQSA for 2014–15 and forward
years. The reduction for 2015–16 is approximately $4.15 million, a 27 per cent reduction
on 2014–15 funding.
Programme expenses 1.1 Regulation and Quality Assurance
2014–15
Estimated
actual
$'000
Annual departmental expenses:
Departmental item
Programme support
Expenses not requiring appropriation in the
Budget year (a)
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
15,623
11,476
8,967
8,971
9,034
1,702
1,123
1,067
1,228
869
Total programme expenses
17,325
12,599
10,034
10,199
9,903
(a) Expenses not requiring appropriation in the Budget year are made up of Depreciation Expenses,
Amortisation Expenses and Audit Fees.
210
TEQSA Budget Statements
Programme 1.1 deliverables

a robust quality assurance framework

decision making guided by the three principles of necessity, reflecting risk and
proportionality

streamlined processes and improved timelines for decision making taking into
account risk and provider history

provision of timely and relevant information to providers in relation to their
obligations under the TEQSA Act and the Education Services for Overseas Students
(ESOS) Act 2000

increased awareness of TEQSA’s roles and responsibilities in the community

enhanced organisational capability and operational efficiency.
Programme 1.1 key performance indicators
The key performance indicators for this outcome are:

high levels of compliance by higher education providers with the Higher
Education Standards Framework and relevant ESOS requirements

improved levels of self-assurance among higher education providers

high stakeholder confidence in TEQSA meeting its objectives

TEQSA consistently meets its service targets.
211
TEQSA Budget Statements
Section 3: Explanatory Tables and Budgeted Financial
Statements
Section 3 presents explanatory tables and budgeted financial statements which provide
a comprehensive snapshot of entity finances for the 2015–16 budget year. It explains
how budget plans are incorporated into the financial statements and provides further
details of the reconciliation between appropriations and programme expenses,
movements in administered funds, special accounts and government Indigenous
expenditure.
3.1
EXPLANATORY TABLES
3.1.1 Movement of administered funds between years
TEQSA has no movement of funds to report therefore table 3.1.1 is not presented.
3.1.2 Special accounts
TEQSA has no special accounts therefore table 3.1.2 is not presented.
3.1.3 Australian Government Indigenous Expenditure
The 2015–16 Australian Government Indigenous Statement is not applicable because
TEQSA has no Indigenous specific expenses.
212
TEQSA Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in entity resourcing and financial statements
TEQSA’s resourcing statement in table 1.1 is directly comparable to the budgeted
financial statements.
3.2.2 Analysis of budgeted financial statements
Departmental financial statements
An analysis of TEQSA’s budgeted financial statements for 2015–16 is provided below.
Budgeted departmental income statement
TEQSA is budgeting for a deficit equal to the unappropriated depreciation and
amortisation expenses in 2015–16 and the three forward years.
Total expenses for 2015–16 are estimated to be $12.599 million, a reduction of
$4.726 million from the 2014–15 estimated actual.
Revenue from Government for 2015–16 is budgeted at $11.461 million. TEQSA’s
funding for 2015–16 is reduced by 27 per cent from the 2014–15 levels.
Budgeted departmental balance sheet
TEQSA has a budgeted net asset position of $4.494 million in 2015–16.
Total assets for 2015–16 are estimated to be $9.005 million, comprising $5.344 million in
financial assets and $3.661 million in non-financial assets.
Total liabilities for 2015–16 are estimated to be $4.511 million, with the primary
liabilities being accrued employee entitlements which total $2.435 million, suppliers’
and other payables of $1.678 million.
Budgeted departmental statement of cash flows
The statement provides information on estimates of the extent and nature of cash flows
by categorising the expected cash flows against operating, investing and financing
activities.
Statement of changes in equity—summary of movement
The statement shows the expected movement of equity during the budget year.
Administered financial statements
Schedule of budgeted income and expenses
The schedule shows the estimated revenues and expenses for programmes
administered by TEQSA on behalf of the Government.
213
TEQSA Budget Statements
TEQSA has in place cost recovery arrangements for specified services (including
registration and re‑registration of providers; accreditation and re‑accreditation of
courses; and major variations to registrations and accreditations) to higher education
providers.
All fee revenue from cost recovery arrangements is administered revenue and is
returned to the Consolidated Revenue Fund. TEQSA therefore does not have any
administered expenses, assets or liabilities.
Revenue
The administered revenue in 2015–16 from cost recovery arrangements is estimated to
be $4.201 million.
Schedule of budgeted administered cash flows
The schedule shows the estimated cash receipts and payments administered by
TEQSA on behalf of the Government.
214
TEQSA Budget Statements
3.2.3 Budgeted financial statements tables
Table 3.2.1: Comprehensive income statement (showing net cost of
services) for the period ended 30 June
2014–15
Estimated
actual
$'000
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Total expenses
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
10,232
5,439
1,654
17,325
8,620
2,904
1,075
12,599
6,862
2,153
1,019
10,034
6,682
2,337
1,180
10,199
6,875
2,207
821
9,903
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services
Total own-source revenue
15
15
15
15
15
15
15
15
15
15
Gains
Other
Total gains
48
48
48
48
48
48
48
48
48
48
Total own-source income
63
63
63
63
63
Net cost of/(contribution by) services
17,262
12,536
9,971
10,136
9,840
Revenue from Government
Surplus/(deficit) attributable to the
Australian Government
15,608
(1,654)
11,461
(1,075)
8,952
(1,019)
8,956
(1,180)
9,019
(821)
Total comprehensive income/(loss)
(1,654)
(1,075)
(1,019)
(1,180)
(821)
Total comprehensive income/(loss)
attributable to the Australian Government
(1,654)
(1,075)
(1,019)
(1,180)
(821)
2015–16
$'000
2016–17
$'000
2017–18
$'000
2018–19
$'000
Note: Impact of net cash appropriation arrangements
2014–15
$'000
Total comprehensive income/(loss)
excluding depreciation/amortisation
expenses previously funded through
revenue appropriations.
less depreciation/amortisation expenses
previously funded through revenue
appropriations (a)
Total comprehensive income/(loss) - as
per the statement of comprehensive
income
-
-
-
-
1,654
1,075
1,019
1,180
821
(1,654)
(1,075)
(1,019)
(1,180)
(821)
(a)
From 2010–11, the Government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities
(and select corporate Commonwealth entities) were replaced with a separate capital budget (the
Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information
regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.
Prepared on Australian Accounting Standards basis.
215
TEQSA Budget Statements
Table 3.2.2: Budgeted departmental balance sheet
(as at 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
173
5,286
173
5,171
173
4,990
173
4,820
160
4,833
Total financial assets
5,459
5,344
5,163
4,993
4,993
Non-financial assets
Land and buildings
Property, plant and equipment
Intangibles
Other non-financial assets
1,921
679
1,012
281
1,640
659
1,105
257
1,360
608
1,283
223
1,128
515
1,297
203
928
557
1,509
203
Total non-financial assets
3,893
3,661
3,474
3,143
3,197
Total assets
9,352
9,005
8,637
8,136
8,190
LIABILITIES
Payables
Suppliers
Other payables
169
1,548
159
1,519
146
1,417
139
1,234
139
1,234
Total payables
1,717
1,678
1,563
1,373
1,373
Provisions
Employee provisions
Other provisions
2,535
398
2,435
398
2,335
398
2,335
398
2,335
398
Total provisions
2,933
2,833
2,733
2,733
2,733
Total liabilities
4,650
4,511
4,296
4,106
4,106
Net assets
4,702
4,494
4,341
4,030
4,084
11,334
6
(7,310)
4,030
4,030
12,209
6
(8,131)
4,084
4,084
Assets held for sale
Liabilities included in disposal groups
held for sale
EQUITY*
Parent entity interest
Contributed equity
8,732
9,599
10,465
Reserves
6
6
6
Retained surplus (accumulated deficit)
(4,036)
(5,111)
(6,130)
Total parent entity interest
4,702
4,494
4,341
Total Equity
4,702
4,494
4,341
*
'Equity' is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
216
TEQSA Budget Statements
Table 3.2.3: Departmental statement of changes in equity—summary of
movement (Budget Year 2015–16)
Retained
earnings
$'000
Asset
revaluation
reserve
$'000
Other Contributed
reserves
equity/
capital
$'000
$'000
Total
equity
$'000
Opening balance as at 1 July 2015
Balance carried forward from previous period
(4,036)
6
-
8,732
4,702
Adjusted opening balance
(4,036)
6
-
8,732
4,702
Comprehensive income
Other comprehensive income
Surplus/(deficit) for the period
(1,075)
-
-
-
(1,075)
Total comprehensive income
(1,075)
-
-
-
(1,075)
-
-
-
(1,075)
-
-
867
867
of which:
Attributable to the Australian Government
(1,075)
Transactions with owners
Contributions by owners
Departmental Capital Budget (DCB)
Sub-total transactions with owners
Transfers between equity
Transfers between equity components
Estimated closing balance as at 30 June
(5,111)
2016
Closing balance attributable to the
(5,111)
Australian Government
Prepared on Australian Accounting Standards basis.
217
867
867
-
6
-
9,599
4,494
6
-
9,599
4,494
TEQSA Budget Statements
Table 3.2.4: Budgeted departmental statement of cash flows
(for the period ended 30 June)
2014–15
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
Sale of goods and rendering of services
Net GST received
Total cash received
Cash used
Employees
Suppliers
Total cash used
Net cash from/(used by) operating
activities
INVESTING ACTIVITIES
Cash received
Other
Total cash received
Cash used
Purchase of property, plant and
equipment
Total cash used
Net cash from/(used by) investing
activities
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
Cash used
Other
Total cash used
Net cash from/(used by) financing
activities
Net increase/(decrease) in cash held
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
15,608
11,461
8,952
8,956
9,019
63
63
63
63
15
462
368
254
255
253
16,133
11,892
9,269
9,274
9,287
9,896
6,237
8,057
3,835
6,300
2,969
6,138
3,136
6,198
3,102
16,133
11,892
9,269
9,274
9,300
-
-
-
-
(13)
-
-
-
-
-
-
-
-
-
-
893
867
866
869
875
893
867
866
869
875
(893)
(867)
(866)
(869)
(875)
893
893
867
867
866
866
869
869
875
875
-
-
-
-
-
893
867
866
869
875
-
-
-
-
173
173
173
173
173
173
173
160
Cash and cash equivalents at the
173
beginning of the reporting period
Cash and cash equivalents at the end
173
of the reporting period
Prepared on Australian Accounting Standards basis.
218
(13)
TEQSA Budget Statements
Table 3.2.5: Departmental capital budget statement
2014–15
Estimated
actual
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Equity injections - Bill 2
Total new capital appropriations
Provided for:
Purchase of non-financial assets
Total Items
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriations (a)
Funded by capital appropriation - DCB (b)
TOTAL
RECONCILIATION OF CASH USED TO
ACQUIRE ASSETS TO ASSET
MOVEMENT TABLE
Total purchases
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
893
-
867
-
866
-
869
-
875
-
893
867
866
869
875
893
867
866
869
875
893
867
866
869
875
-
-
-
-
-
893
867
866
869
875
893
867
866
869
875
893
867
866
869
875
Total cash used to acquire assets
893
867
866
869
875
(a) Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.
(b) Does not include annual finance lease costs. Includes purchases from current and previous years’
Departmental Capital Budgets (DCBs).
Prepared on Australian Accounting Standards basis.
219
TEQSA Budget Statements
Table 3.2.6: Statement of asset movements (2015–16)
Buildings
$'000
As at 1 July 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
Capital asset additions
Estimated expenditure on new or
replacement assets
By purchase - appropriation equity (a)
By purchase - appropriation ordinary
annual services (b)
Total additions
Other movements
Depreciation/amortisation expense
Disposals (c)
From disposal of entities or operations
(including restructuring)
Other
2,586
(665)
Other property,
plant and
equipment
$'000
969
(290)
Computer
software and
intangibles
$'000
1,307
(295)
Total
$'000
4,862
(1,250)
1,921
679
1,012
3,612
-
-
-
-
50
149
668
867
50
149
668
867
(331)
(169)
(575)
(1,075)
(331)
(169)
(575)
(1,075)
Total other movements
As at 30 June 2016
Gross book value
Accumulated depreciation/amortisation
and impairment
2,636
Closing net book balance
1,640
(996)
1,118
(459)
659
1,975
(870)
1,105
5,729
(2,325)
3,404
(a) ‘Appropriation equity’ refers to equity injections appropriations provided through Appropriation Bill
(No. 2) 2015–16, including CDABs.
(b) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)
2015–16 for depreciation/amortisation expenses, DCBs or other operational expenses.
(c) Net proceeds may be returned to the OPA.
Prepared on Australian Accounting Standards basis.
220
TEQSA Budget Statements
Table 3.2.7: Schedule of budgeted income and expenses administered on
behalf of Government (for the period ended 30 June)
2014–15
Estimated
actual
$'000
EXPENSES
Total expenses administered on behalf of
Government
LESS:
OWN-SOURCE INCOME
Own-source revenue
Non-taxation revenue
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
-
-
-
-
-
4,062
4,201
4,201
4,201
4,201
Total non-taxation revenue
4,062
4,201
4,201
4,201
4,201
Total own-source revenue administered
on behalf of Government
4,062
4,201
4,201
4,201
4,201
Total own-sourced income administered
on behalf of Government
4,062
4,201
4,201
4,201
4,201
(4,062)
(4,201)
(4,201)
(4,201)
(4,201)
4,062
4,201
4,201
4,201
4,201
4,062
4,201
4,201
4,201
4,201
Total comprehensive income/(loss)
4,062
Prepared on Australian Accounting Standards basis.
4,201
4,201
4,201
4,201
Sale of goods and rendering of services
Net cost of/(contribution by) services
Surplus/(deficit) before income tax
Income tax expense
Surplus/(Deficit) after income tax
221
TEQSA Budget Statements
Table 3.2.8: Schedule of budgeted assets and liabilities administered on
behalf of Government (as at 30 June)
All administered revenue is returned to the Consolidated Revenue Fund. Therefore
TEQSA does not have any administered assets or liabilities and for this reason table
3.2.8 is not presented.
Table 3.2.9: Schedule of Budgeted Administered Cash Flows
(for the period ended 30 June)
OPERATING ACTIVITIES
Cash received
Sales of goods and rendering of services
Cash from Official Public Account
Total cash received
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
4,462
(200)
4,601
(200)
4,601
(200)
4,601
(200)
4,601
(200)
4,262
4,401
4,401
4,401
4,401
-
-
-
-
-
4,401
4,401
4,401
4,401
4,401
4,401
4,401
4,401
200
200
200
200
200
200
200
200
Cash used
Total cash used
Net cash from/(used by) operating
4,262
activities
Net increase/(decrease) in cash held
4,262
Cash and cash equivalents at beginning of
reporting period
Cash from Official Public Account for:
- Appropriations
200
Total cash from Official Public Account
200
Cash to Official Public Account for:
- Appropriations
(4,462)
Total cash to Official Public Account
(4,462)
Cash and cash equivalents at end of
reporting period
Prepared on Australian Accounting Standards basis.
222
(4,601)
(4,601)
-
(4,601)
(4,601)
-
(4,601)
(4,601)
-
(4,601)
(4,601)
-
TEQSA Budget Statements
Table 3.2.10: Administered Capital Budget Statement
TEQSA does not have any administered capital budget therefore table 3.2.10 is not
presented.
Table 3.2.11: Statement of Administered Asset Movements (2015–16)
TEQSA does not have any administered assets therefore table 3.2.11 is not presented.
3.2.4 Notes to the Financial Statements
The statements have been prepared:

on accrual accounting basis

in compliance with Australian Accounting Standards and Australian Equivalents
to International Financial Reporting Standards and other authoritative
pronouncements of the Australian Accounting Standards Board

having regard to Statements of Accounting Concepts.
Departmental revenue from Government
Revenue from Government represents the purchase of programmes from TEQSA by
the Government.
Departmental own source revenue
Revenue from the sale of goods and services is recognised upon the delivery of the
goods and services to the customers.
Departmental expenses – employee benefits
This item represents payments and entitlements owed to employees for their services
rendered in the financial year.
Departmental expenses – suppliers
This item represents payments to suppliers for goods and services.
Departmental expenses – depreciation and amortisation
Property, plant and equipment assets are written off to their estimated residual values
over their estimated useful lives to TEQSA using the straight-line method of
depreciation. Forward estimates of depreciation expense are made using forecasts of
net capital acquisitions over the forward years.
Departmental assets – financial assets – cash
Cash includes notes and coins held and deposits at call with a bank or financial
institution.
223
TEQSA Budget Statements
Departmental assets – financial assets – receivables
Receivables represent amounts owing to TEQSA for cash reserves held in the Official
Public Account and prepayments.
Departmental assets – non-financial assets
These items represent future economic benefits that TEQSA will consume in producing
outputs.
Following initial recognition at cost, property, plant and equipment are carried at fair
value less accumulated depreciation. Valuations are conducted with sufficient
frequency to ensure that the carrying amount does not differ materially from the
assets’ fair value and reporting date.
Departmental liabilities – provisions – employees
Provision has been made for TEQSA’s liability for employee entitlements arising from
services rendered by employees to date. This liability encompasses wages and salaries
that are yet to be paid, annual leave and long service leave. No provision is made for
sick leave.
Employee entitlements payable are measured as the present value of the estimated
future cash outflows to be made in respect of services provided by employees up to the
reporting date. Liabilities expected to be settled within 12 months are measured at the
nominal amount.
Departmental liabilities – payables – suppliers
Suppliers are recognised at cost. Liabilities are recognised to the extent that the goods
or services have been received (and irrespective of having being invoiced).
Administered Items
Administered items are those that TEQSA does not control and which are subject to
prescriptive rules or conditions established by legislation or Australian Government
policy, in order to achieve Australian Government outcomes.
Administered revenue is fee revenue from cost recovery arrangements.
224
Portfolio Glossary and Acronyms
PORTFOLIO GLOSSARY
Term
Definition
Accrual accounting
System of accounting where items are brought to account and
included in the financial statements as they are earned or
incurred, rather than as they are received or paid.
Additional Estimates
Where amounts appropriated at Budget time are insufficient,
Parliament may appropriate more funds to portfolios through
the Additional Estimates Acts.
Additional Estimates Bills or
Acts
These are Appropriation Bills 3 and 4, and a separate Bill for the
Parliamentary Departments [Appropriations (Parliamentary
Departments) Bill (No. 2)]. These Bills are introduced into
Parliament sometime after the Budget Bills.
Administered items
Expenses, revenues, assets or liabilities managed by agencies on
behalf of the Commonwealth. Agencies do not control
administered items. Administered expenses include grants,
subsidies and benefits. In many cases, administered expenses
fund the delivery of third party outputs.
Appropriation
An authorisation by Parliament to spend moneys from the
Consolidated Revenue Fund for a particular purpose.
Annual Appropriation
Two Appropriation Bills are introduced into Parliament in May
and comprise the Budget for the financial year beginning
1 July. Further Bills are introduced later in the financial year as
part of the additional estimates. Parliamentary departments
have their own appropriations.
Assets
Assets are physical objects and legal rights it is expected will
provide benefits in the future or alternatively items of value
owned by an agency.
Budget measure
A decision by the Cabinet or ministers that has resulted in a cost
or savings to outlays.
Capital expenditure
Expenditure by an agency on capital projects, for example
purchasing a building.
Consolidated Revenue Fund
Section 81 of the Constitution stipulates that all revenue raised
or money received by the Commonwealth forms the one
Consolidated Revenue Fund (CRF). The CRF is not a bank
account. The Official Public Account reflects most of the
operations of the CRF.
Departmental items
Assets, liabilities, revenues and expenses that are controlled by
the agency in providing its outputs. Departmental items would
generally include computers, plant and equipment assets used
by agencies in providing goods and services and most
employee expenses, supplier costs and other administrative
expenses incurred.
225
Portfolio Glossary and Acronyms
Term
Definition
Accrual accounting
System of accounting where items are brought to account and
included in the financial statements as they are earned or
incurred, rather than as they are received or paid.
Depreciation
Apportionment of an asset’s capital value as an expense over its
estimated useful life to take account of normal usage,
obsolescence, or the passage of time.
Equity or net assets
Residual interest in the assets of an entity after deduction of its
liabilities.
Expenses
Total value of all of the resources consumed in producing goods
and services or the loss of future economic benefits in the form
of reductions in assets or increases in liabilities of an entity.
Fair value
Valuation methodology: The amount for which an asset could
be exchanged or a liability settled, between knowledgeable and
willing parties in an arm’s length transaction. The fair value can
be affected by the conditions of the sale, market conditions and
the intentions of the asset holder.
Forward estimates
A system of rolling three year financial estimates. After the
budget is passed, the first year of the forward estimates
becomes the base for the next year’s budget bid, and another
out-year is added to the forward estimates.
Liabilities
Liabilities represent amounts owing on goods or services that
have been received but not yet paid for. A liability shows the
future commitment of an agency’s assets.
Net annotated appropriation
(Section 74 Receipts)
Section 74 Receipts, also known as net annotated
appropriations, are a form of appropriation which allows a
department access to certain money it receives in payment of
services. These monies are known as Section 74 Receipts,
reflecting their authority under Section 74 of the PGPA Act
2013.
Official Public Account
The Australian Government maintains a group of bank
accounts at the Reserve Bank of Australia, known as the Official
Public Account (OPA), the aggregate balance of which
represents its daily cash position.
Operating result
Equals revenue less expenses.
Outcomes
The Government's objectives in each portfolio area. Outcomes
are desired results, impacts or consequences for the Australian
community as influenced by the actions of the Australian
Government. Actual outcomes are assessments of the endresults or impacts actually achieved.
226
Portfolio Glossary and Acronyms
Term
Definition
Accrual accounting
System of accounting where items are brought to account and
included in the financial statements as they are earned or
incurred, rather than as they are received or paid.
Public Governance, Performance
and Accountability Act 2013
The Public Governance, Performance and Accountability Act 2013
(PGPA Act) replaced the Financial Management and
Accountability (FMA) Act 1997 and the Commonwealth Authorities
and Companies (CAC) Act 1997 as of 1 July 2014.
The PGPA Act is part of the Australian Government’s Public
Management Reform Agenda and aims to foster a more flexible
public sector, preserving the best of existing arrangements
while addressing the limitations of the FMA Act and the CAC
Act.
Portfolio Budget Statements
Statements prepared by portfolios to explain the budget
appropriations in terms of outcomes.
Receipts
The total or gross amount received by the Australian
Government. Each receipt item is either revenue, an offset
within outlays, or a financing transaction. Receipts include
taxes, interest, charges for goods and services, borrowings and
Government Business Enterprise (GBE) dividends received.
Revenue
Total value of resources earned or received to cover the
production of goods and services.
Section 74 Receipts
See net annotated appropriation.
Special Account
Balances existing within the Consolidated Revenue Fund (CFR)
that are supported by standing appropriations
(PGPA Act, s78 and s80). Special accounts allow money in the
CRF to be acknowledged as set-aside (hypothecated) for a
particular purpose. Amounts credited to a Special Account may
only be spent for the purposes of the Special Account. Special
accounts can only be established by a written determination of
the Finance Minister (s.78 of the PGPA Act 2013) or through an
Act of Parliament (referred to in s.80 of the PGPA Act 2013).
Special Appropriations
(including Standing
Appropriations)
An amount of money appropriated by a particular Act of
Parliament for a specific purpose and number of years. For
special appropriations the authority to withdraw funds from
the Consolidated Revenue Fund does not generally cease at the
end of the financial year. Standing appropriations are a subcategory consisting of ongoing special appropriations — the
amount appropriated will depend on circumstances specified in
the legislation.
227
Portfolio Glossary and Acronyms
PORTFOLIO ACRONYMS
Acron ym
Definition
ACARA
Australian Curriculum Assessment and Reporting Authority
AEIFRS
Australian Equivalents to International Financial Reporting Standards
AEDC
Australian Early Development Census
AGIE
Australian Government Indigenous expenditure
AIATSIS
Australian Institute for Aboriginal and Torres Strait Islander Studies
AITSL
Australian Institute for Teaching and School Leadership
AMEP
Adult Migrant English Programme
AMSI
Australian Mathematical Sciences Institute
AMSPP
Australian Maths and Science Partnerships Programme
ARC
Australian Research Council
ASQA
Australian Skills Quality Authority
ATSIHEAC
Aboriginal and Torres Strait Islander Higher Education Advisory Council
CAC
Commonwealth Authorities and Companies
CDAB
Collection Development Acquisition Budget
CGS
Commonwealth Grant Scheme
COAG
Council of Australian Governments
COPE
Commonwealth Own Purpose Expense
CCSSP
Child Care Services Support Programme
CRN
Collaborative Research Networks
DCB
Departmental Capital Budget
EIF
Education Investment Fund
ELLA
Early Learning Languages Australia
ERA
Excellence in Research for Australia
ESA
Education Services Australia
ESOS Act
Education Services for Overseas Students Act 2000
FRR
Financial Reporting Rule
GBE
Government Business Enterprise
HECS
Higher Education Contribution Scheme
HEIMS
Higher Education Information Management System
HELP
Higher Education Loan Programme
HERP
Higher Education Research Promotion
HESA
Higher Education Support Act 2003
ICT
Information and Communication Technology
IPAIES
Increasing the Profile of Australia’s International Education Sector
ITRH
Industrial Transformation Research Hubs
228
Portfolio Glossary and Acronyms
Acron ym
Definition
ACARA
Australian Curriculum Assessment and Reporting Authority
ITTC
Industrial Transformation Training Centres
JETCCFA
Jobs Education and Training, Child Care Fee Assistance
KPI
Key performance indicator
LIEF
Linkage Infrastructure, Equipment and Facilities
LP
Linkage Projects
MOU
Memorandum of Understanding
MSSD
More Support for Students with Disabilities
MYEFO
Mid-Year Economic and Fiscal Outlook
NAP
National Assessment Programme
NAPLAN
National Assessment Programme – Literacy and Numeracy
NCGP
National Competitive Grants Programme
NCRIS
National Collaborative Research Infrastructure Strategy
NP
National Partnership
NQF
National Quality Framework
NSC
National Security College
NSCP
National Schools Chaplaincy Programme
OPA
Official Public Account
OTM
Other Trust Monies
PACER
Parliament and Civics Education Rebate
PBS
Portfolio Budget Statements
PELTHE
Promotion of Excellence in Learning & Teaching in Higher Education
PGPA
Public Governance, Performance and Accountability Act 2013 (PGPA Act)
P-TECH
Pathways in Technology Early College High school
SAF
Structural Adjustment Fund
SCSEEC
Standing Council on School Education and Early Childhood
SES
Socio-economic status
STEM
science, technology, engineering and mathematics
SOETM
Services for Other Entities and Trust Moneys
SOG
Services for other Government and Non-agency Bodies
TAFE
Technical and Further Education
TEMAG
Teacher Education Ministerial Advisory Group
TEQSA
Tertiary Education Quality and Standards Authority
UNESCO
United Nations Educational, Scientific and Cultural Organization
VET
Vocational Education and Training
229