Annual Report 2013 - Parliament of Victoria...The 2013 Annual Report provides an overview of...

Annual Report

2013

Part One: Report of OperationsVision, Mission and Values 4Introduction 5Board Chair Report 6Chief Executive Officer Report 7Strategic Planning 8Board Organisational Chart 9Institute Governance 102013 Institute Board Membership 112013 Institute Board Members 122013 Board Member Attendance at Meetings 14Objectives of the Board 15Board Governance 15Institute Board Committees 16

Finance Committee 16Audit and Risk Committee 17People and Safety Committee 18Governance Committee 18

Board Induction and Training 19Institute Executive 20GippsTAFE Organisational Chart 21Finance and Infrastructure 22Facilities Management 24Academic Support Services 24Technical Innovations 25Human Resource 26

Staff Achievements 28Student Management Centre 30

Fees and Charges 30Student Achievements 31Library and Information Services 32Occupational Health and Safety 33Protected Disclosures Act 34Institute Staff 35Staffing Data 37

Major Committee Representation 38Educational Operations Overview 40

Business and Community Programs 40Foundation Studies 41Energy and Telecommunications 43Higher Education 44Industry Programs 45Health Programs 47Technology Enabled Learning Centres 49

International 50Commercial Programs and Marketing 52Freedom of Information 54Consultants 55Summary of Financials 56Activity Statement 57Information Privacy 58Compliance with National Competition Policy 58Compliance Statement 59Information Available 59

Contents

Part Two: Financial StatementsAuditor’s Report 62Certifications 64Comprehensive Operating Statement 65Balance Sheet 66Statement of Changes in Equity 67Cash Flow Statement 68Notes to the Financial Statements 70Glossary 118Disclosure Index 120

2013 GippsTAFE Annual Report

Page. 4 GippsTAFE Annual Report

Values:

GippsTAFE puts you FIRST by demonstrating:

FLEXIBILITYMeans to be adaptable, versatile, responsive and nimble.In our environment, examples include:• Being solutions focussed in offering options and alternatives that

suit other’s needs, and mentoring and supporting colleagues to do the same.

• Re-inventing yourself or your methods, processes and activities and implementing best practice initiatives.

• Embracing and enthusiastically implementing the use of e-technologies.

INNOVATIONMeans to challenge yourself to explore and implement new ideas and methods to best support the needs of our clients.In our environment, examples include:• Developing and implementing exciting and engaging methods of

delivery. e.g. Online applications, nested products, use of social media and industry involvement.

• Designing and leading new processes that create efficiencies.

• Undertaking new activities aimed at better meeting changing and emerging needs.

RESPONSIVENESSMeans to be sensitive to other’s needs and to be proactive in providing efficient and professional services and accurate information in a timely manner.In our environment, examples include:• Demonstrating desire and willingness to strive towards always

providing levels of service, guidance and advice that is highly valued by our clients.

• Meeting deadlines and milestones with enthusiasm and initiative.

• Providing answers and solutions and showing initiative in predicting and servicing further needs.

SUSTAINABILITYMeans to maintain, to support, and to ensure longevity.In our environment, examples include:• Ensuring activities can translate across areas.

• Workforce planning strategies/ succession planning.

• Developing and implementing work practices that support environmental sustainability.

TRANSFORMATIONMeans to change or convert.In our environment, examples include:• Up skilling/ developing yourself.

• Having influence over others to change a situation, process or activity.

• Exerting a positive influence on culture.

Part One Report of Operations

Vision:Securing your future through flexible solutions.

Mission:To continually develop and deliver customised training solutions for the economic and social development of individuals, enterprises and communities.

Page. 5GippsTAFE Annual Report

The six locations are differentiated from one another by the focus of the educational programs, the services provided and the delivery methodology, which is tailored to the community that each of the location serves.

The region served by GippsTAFE covers the shires of Baw Baw, South Gippsland, Cardinia, Latrobe City, Monash and elements of Wellington. In addition to its regional operations, GippsTAFE is active within the international arena. The Institute is involved in the delivery of training programs in Papua New Guinea, the Philippines and Malaysia.

The diversity of courses and the range of qualifications that the Institute delivers are complemented by its expertise in e-learning technologies, blended delivery options and the design and delivery of learning environments that are aligned to the needs of the client. The Institute has a robust online presence, mediated through the TAFE Virtual Campus. The introduction of the Technology Enabled Learning Centres will further enhance the online and flexible learning capability of the Institute.

The 2013 Annual Report provides an overview of GippsTAFE’s performance during 2013 and showcases a number of the Institute’s successes. This Annual Report reflects the Institute’s operations and is prepared in accordance with the Financial Reporting Directions set by Department of Education and Early Childhood Development, Higher Education and Skills Group.

Introduction

Central Gippsland Institute of TAFE (otherwise known and trading as GippsTAFE) is situated in Gippsland, south east of Melbourne Victoria. The Institute operates from six locations, which includes five regional and one metropolitan centre.


Chair’s 2013 Annual Report It is with pleasure that I recommend this 2013 Annual Report for your reading and consideration. As the incoming Chair of Central Gippsland Institute of TAFE (GippsTAFE) I am proud to be part of an Institute that has served the Gippsland community since 1928. Throughout those many years our Institute has been the cornerstone of technical and vocational education and it is with pride that I recognise that many students have passed through the GippsTAFE doors and have gone on to create and have productive and rewarding careers.

The year 2013 has been one of change and transformation with the introduction of a demand driven training environment, enhanced Board autonomy provided by the State Government and the transition of our Institute into that of a more commercially focused organisation. The activities of the Institute have been shaped by an economic environment that has impacted the whole of Australia and the effect of low participation and aspirational rates across our region; coupled with these elements the Institute has operated in an increasingly challenging and competitive training market.

During the course of 2013 GippsTAFE undertook an extensive review process to evaluate the most appropriate options for business sustainability into the future. The Institute commissioned the services of Ernst and Young, RSM Bird Cameron and Deloitte Touche Tohmatsu to assess different elements and business viability options.

Central to the evaluation processes was the assessment of key risk mitigation strategies as the Institute explored opportunities for business sustainability. The GippsTAFE Board mindful of the need to be sustainable has sought a solution that provides a robust presence for Vocational Educational Training (VET) and increased accessibility for students desirous of choice of study.

While there have been challenges for the Institute throughout 2013 the Institute was proactive on a number of fronts including the piloting and rolling out of a new Student Management System (SMS) and as the lead Institute for the Technology Enabled Learning Centres (TELCs) initiative. The previous SMS was past its use by date and in partnership with Higher Education and Skills Group (HESG) and a number of other TAFEs, GippsTAFE undertook to pilot the new system across the Victorian TAFE Network. As with many other new systems there have been teething issues, data integration concerns and configuration issues; despite the challenges, the Institute was steadfast in seeking to play a lead role in the rollout of the new student system and fufill our obligations.

In a similar manner the Institute has in partnership with Chisholm Institute and Advance TAFE sought to rollout twenty (20) plus sites that are connected to high end technologies which visually link campuses and locations over vast geographic distances. Whilst these projects have been challenging, they characterise an Institute that is resilient and dedicated to provide the best possible educational outcomes for students and learners in our region.

On the curriculum and new products front GippsTAFE has been at the leading edge of curriculum design and delivery with the Regional Partnership Facilitation Fund (RPFF) supported Community Health program. The program was one of the very first to be designed around the integration of vocational education and higher education. The program has proven highly successful with very good enrolments, the use of educational technologies and most importantly the bringing together of both applied and conceptional learning. In addition to the above, in the latter half of 2013 the Institute was able to gain a further two RPFF Grants in the fields of Process Control Engineering and Hospitality. These projects are forerunners for the future design and development of courses and new products and services for GippsTAFE.

GippsTAFE has continued to be focussed on business transformation as we seek to ensure our sustainability into the future. While the Institute has a commercial focus which it has sought to develop over the last couple of years, it is important that greater emphasis is applied to the commercialisation of our products and services. A feature of that commercialisation will be the increasing use of digitised learning and the globalisation of our courses. The Institute has already made gains in international education and is a leader in the digitisation of educational content and it will be essential to drive these changes to sustain the Institute into the future. During 2013 GippsTAFE in line with the Victorian Government’s International Education Strategy for Victoria 2013 – 2018, signed a Memorandum of Understanding with Pusat Pembangunan Kemahiran Sarawak, Beyond Petroleum SDN BHD and the SAE International Institute to deliver diploma and certificate level courses throughout Malaysia which will generate a revenue stream.

The Institute continues to be a major provider of quality vocational education within Gippsland and beyond while the higher education provision, particularly from GippsTAFE Academy Traralgon, continues to grow. Our partnership arrangements also include our work with the Gippsland Education Precinct, West Gippsland Trade Training Centre and the South Gippsland Trade Training Centre through which the Institute is building stronger alliances with the secondary school sector.

Finally I wish to extend my appreciation to the Institute’s current Board of Non-Executive Directors, our Chief Executive Officer and Executive Directors for their support and strong endeavours during 2013.

I would also take this opportunity to formally thank the previous Board Directors for their dedication and contribution to GippsTAFE.

John Mitchell

Board Chair Report


CEO’s 2013 Annual Report The year 2013 has been one of change and challenge which has seen GippsTAFE consider and review its future directions with a particular desire to meet the expectations of our students, customers and clients. Repositioning the Institute so that it is in a favourable and sustainable position moving forward has occupied much of our work so that our courses meet the skill needs of the local industry, technology is embedded into our services to increase the variety and accessibility as we strengthen our engagement with industry.

With the advent of changes to policy framework the Institute has sought to renew itself through a restructure of our organisation, a change in focus for our courses so they target skill shortage areas, the increasing use of technologies into our pedagogical practices and a renewed emphasis on developing and creating new streams of revenue. It is our intention to generate revenues from multiple sources that will support and contribute to building and providing better products and services for students of Gippsland and the markets we reach.

Our Institute continues to work to its values of FIRST (Flexibility, Innovation, Responsiveness, Sustainability and Transformation) by creating services and products that embrace the elements of FIRST but are developed to match the expectations of the schools, industries and stakeholders that are part of our learning community. A strong emphasis during 2013 has been the pursuit of new technologies and the digitisation of our learning materials which has seen an enhancement of the accessibility of our courses beyond the Gippsland region. These initiatives provide an opportunity for the Institute to grow as we build our staff’s capability to take advantage of the new intuitive technologies.

In 2013 our industry engagement activities have proven to be strong and GippsTAFE is reaping the rewards of positive industry partnerships with extensive collaborative work between being undertaken at our Chadstone campus with electrical energy distributors and at our Yallourn

campus with the oil and gas industries. These are positive outcomes which cement GippsTAFE’s role in eastern Victoria as a major provider of quality vocational and technical education.

The staff of the Institute during 2013 have contributed significantly to the Institute’s performance and perception within the community; amid considerable organisational transformation our staff have embraced the many challenges, sought out the opportunities and carried the Institute forward so that it is in a better position in the future. I take this opportunity to congratulate all the Institute staff for their endeavours and assistance during the year.

There have been many projects that have been undertaken by the Institute during the year including the piloting of the Student Management System (SMS), leading the Technology Enabled Learning Centres (TELCs) rollout, participating in the Regional Partnership Facilitation Fund (RPFF) activities and the Trade Training Centres development. While they have all taken some considerable effort the resulting outcomes have been positive for the Institute and continue to demonstrate GippsTAFE’s commitment to regional education.

While the year has had its challenges the Institute has embraced those challenges and is moving forward within the new training environment. I am equally confident that we have set the Institute on the right track for the future and within that environment GippsTAFE will be able to prosper. Our new products and services will stand us in good stead for the next year. It is with these thoughts and comments that I present the Central Gippsland Institute of TAFE Annual Report for 2013.

Dr Peter Whitley

CEO Report


GippsTAFE’s business operations continue to be aligned with the Institute’s strategic directions published in the Strategic Plan 2014 – 2016 “Flexible Solutions”. These strategic directions are founded on three priority areas:

Our Products and Services: Our DifferenceTo provide quality competitive training services and business solutions which are responsive, flexible and innovative.

Our People: Our AdvantageTo develop and promote a sustainable workforce highly regarded for their skills, knowledge, adaptability, innovation and professionalism.

Our Investment: Our FutureTo invest for the future to achieve a sustainable and successful organisation.

STRATEGIC PLANNING 2014 - 2016

The Institute Board annually reviews the Institute’s Strategic Plan to ensure the currency and relevance of the Plan and that the Strategic Plan is continuing to be appropriate to the Institute. Throughout 2013 the Strategic Plan continued to provide a strong foundation and reference point for operational planning across all campuses, departments and business units.

The GippsTAFE Key Performance Indicators (KPI’s) are a key element in the creation of the Strategic Plan to make certain that the Plan aligns with the objectives ensuring feasibility in achieving the set targets. The staff of the Institute have continued to work toward the achievement of the targets for 2013 and our success demonstrates the strong leadership from the Board, Institute Management and staff. The Strategic Plan and indicators are embodied in the document ‘Flexible Solutions’.

Strategic Planning 2014 - 2016


Board Organisational Chart

The Board of Central Gippsland Institute of TAFE

Board Chair John Mitchell

Board SecretaryIan Carroll

Board Executive Assistant

Audit and Risk Committee Finance Committee People and Safety Committee Governance Committee

Committee Membership

Ormond Pearson (Chair)Belinda WilsonDavid Gittins


Mark Dunsmuir (Chair)John Mitchell

Joanne Stringer


Julie Hocking (Chair)Peter Vines

Dr Cheryl Glowrey


John Mitchell (Chair)Belinda WilsonBoard Secretary

The Board of Central Gippsland Institute of TAFE as of 31 December 2013


The Institute Board is the governing body of GippsTAFE and is appointed under a Governor-in-Council order of the Education and Training Reform Act 2006, and is responsible to The Hon. Peter Hall, MLC, Minister for Higher Education and Skills. The Institute operates within the directions and guidance of a formal Constitution and Strategic and Commercial guidelines issued from the Minister’s Portfolio Department. In order to undertake its obligations, the Institute Board delegates responsibilities to the Institute Chief Executive Officer for specifically identified activities.

In 2013 a new Constitution was passed through parliament formally Gazetted on 10 April 2013 and taking effect on 15 April 2013. The

purpose of this Constitution is outlined in Division 1 Clauses (2a) to (2h) particularly to continue the existence of this organisation.

The new Constitution formalised the requirement for a Board Secretary and defined limits of the Board activity without and with reference back to the Minister. The Governor in Council appointed a new Chair and the Minister appointed four Directors who then collectively nominated four further Directors for acceptance by the Minister to complete the governing Board of the Institute. The CEO is no longer a Board Director.

Institute Governance

GippsTAFE Academy Campus (Traralgon)


Ministerial Appointments – January 2013 to 14 April 2013Mr David Gittins Mrs Joanne Stringer Ms Loretta Hambly (Term completed 14 April 2013)Ms Linda Giddy (Term completed 14 April 2013)Ms Monique de Zwart (Term completed 14 April 2013)Mr Nigel Gerreyn (Term completed 14 April 2013)Mr Ormond Pearson Mrs Julie Hocking Ms Liz Cruickshank (Term completed 14 April 2013)Dr Peter Whitley CEO (Term completed 14 April 2013)

Interim Ministerial Nominee Directors – Appointed 16 April 2013Mr David Gittins (Term completed 30 August 2013)Mrs Joanne Stringer (Term completed 30 August 2013)Mr Ormond Pearson (Term completed 30 August 2013)Mrs Julie Hocking (Term completed 30 August 2013)

Ministerial Nominee Directors - RatifiedMr John Mitchell (Term appointed – 16 April 2013 to 28 February 2016)Mr David Gittins (Term appointed – 1 September 2013 to 28 February 2015)Mrs Joanne Stringer (Term appointed – 1 September 2013 to 28 February 2014)Mr Ormond Pearson (Term appointed – 1 September 2013 to 28 February 2015)Mrs Julie Hocking (Term appointed – 1 September 2013 to 28 February 2016)

Board Nominee Directors Appointed and Accepted by MinisterMr Mark Dunsmuir (Term appointed – 1 September 2013 to 28 February 2016)Ms Belinda Wilson (Term appointed – 1 September 2013 to 28 February 2016)Mr Peter Vines (Term appointed – 1 September 2013 to 28 February 2015)Dr Cheryl Glowrey (Term appointed – 1 September 2013 to 28 February 2015)

2013 Institute Board Membership


Mr John MitchellFLGPro; MAICD

John has an extensive business/governance background in local government, water, sewerage, resource management, and community governance. In his various roles as Chief Executive and Managing Director John has a strong track record in strategic/business planning, organisational development and restructure, economic development, leadership and organisational change.

John is currently Managing Director, John Mitchell Consulting Pty Ltd; Deputy Chair Gunaikurnai Traditional Owner Land Management Board; Director Sundermann Water Power Ltd; Chair Gippsland Regional Executive Forum; and President Gippsland Emergency Relief Fund.

Mr David GittinsDip.Bus.Admin

David is Managing Director and Dealer Principal of Valley Motor Group in Traralgon, Morwell and Moe. His professional background has been predominantly within the automotive industry, with eleven years of experience within the corporate structure of Ford Australia. David is committed to the growth and development of Gippsland, as well as to the delivery and promotion of vocational education and training in the region. David is a Ministerial appointment to the Gippsland Tertiary Education Committee. He is a life member of Apex, Committee member of Gippsland Life Education, member of BMW Dealer Council and a current member of the Morwell Rotary Club.

Mrs Joanne StringerM.Bus.Tech, B.Ed, Dip.ECE, Grad.Cert.Mgmt

Joanne has been a member of the Institute Board for more than fourteen (14) years both as a Ministerial and co-opted member with 3 years as Board President. Joanne brings a wealth of experience to the Board with employment in various industry sectors including early childhood education, local government, aged care and community health. Joanne has extensive training and involvement in corporate governance over many years, including the Institute Company Directors course. Joanne brings a rural and regional community perspective in regard to training and education to the Board, having lived in South Gippsland for more than 30 years. Joanne is currently employed by Latrobe Community Health Service as a Case Manager

Mr Ormond PearsonBHSC(Mgt), AFCHSM, FIPA, FAIM, FAICD

Ormond resigned as CEO of West Gippsland Healthcare Group in 2011 after 30 years as CEO of rural and regional health services in South Australia and Victoria. Ormond is currently works as a part time consultant, facilitator, and mediator as well as providing a Locum CEO Service. Ormond is a Director on the Gippsland Water Board and serves as a Minister for Health Delegate at Portland District Health Service and has experience in leadership, strategic and business planning, financial management, quality and risk management. Ormond is the Chair of the Audit and Risk Committee.

2013 Institute Board Members

Board of Directors

The Board of Directors comprises nine Directors who all individually share a commitment to TAFE and its mission to provide a valuable and integrated technical and further education service to industry, the community and the Victorian Government.


Mrs Julie Hocking BA Psychology/Humanities, Graduate Certificate – Executive Business Administration, Neuro Linguistics Programming (NLP) Practitioner

Julie is a strategic leader with over 20 years experience in Regional, Local and State Government and has significant experience in collaborating across sectors. She has strong skills and success in delivery on corporate vision and goals, ensuring organisational alignment. Throughout her career Julie has worked with State and Federal governments, Not-For-Profits, Councils, industry groups, the education sector and community groups. As a State Government Regional Director for the Department of Planning and Community Development (DPCD), Julie has experience in working tactically in a regional setting with senior executives in government, business, industry and with leaders in communities. In her current role, Julie is the Senior Director of Julie Hocking Consulting, focusing on strategic planning, facilitation, business planning and people management, with success in transforming staff and organisations through leadership dimensional coaching. Julie is the Chair of the People and Safety Committee.

Ms Belinda WilsonLL.B

Belinda is a Senior Associate at Tyler Tipping & Woods and has been a local solicitor practising law in Gippsland since 2002.Belinda practices in a variety of areas of law including Business Law, Property Law and Estate Planning. Belinda plays an active role in the Law Institute of Victoria, and, in particular was elected as a Councillor of the Law Institute of Victoria for a three year term commencing on the 1st January 2014, is a Committee Member of the Business Law Section; and is a founding member of their Mentoring Program.

As Regional Lawyer of the year 2011 (Law Institute of Victoria), Belinda is committed to regional and rural issues and in particular the retention, growth and development of students, learning and knowledge in Gippsland. Belinda has vast understanding of both the legal and education sectors and is able to bring this knowledge and experience to GippsTAFE.

Mr Mark DunsmuirB.Bus CA

Mark is a chartered accountant with extensive experience working as a principal for a publicly listed accounting firm and now managing his own accounting firm, specialising in the fields of Agricultural, Retail and Development. Mark is also Director of Gippsdairy and Fairview Homes for the Aged. Mark is the Chair of the Finance Committee.

Mr Peter VinesB.Com, MBA, FAICD, FIE(Aust)

Peter has held a range of non-executive director roles in the energy, utilities and manufacturing sectors. He is currently Deputy Chair of Melbourne Water Corporation and Chair of Carroll and Richardson. Peter previously held executive roles as Managing Director of Pacificorp Australia Limited and Executive General Manager of Origin Energy Limited.

Dr Cheryl GlowreyBA, Masters in Education, PhD

Cheryl is Principal of South Gippsland Secondary College, located in Foster. She has more than 30 years of experience in secondary education. As a teacher, she worked in the ACT, Riverina and Gippsland and always taken a strong interest in the post-compulsory pathways for young people. As a Principal for the past 14 years in West and South Gippsland, she has participated in networks committed to improving Vocational Education and Training outcomes in schools (VETiS) and is currently Principal of the Lead School in the South Gippsland Trade Training Centre project. Through this project, delivery of a blended learning model of VETiS programs is aimed at improving access for rural and remote students to learning. Cheryl has previous experience as a member of the former VQA Board, as Director and Chair of Community College Gippsland and as a member of Australian Council of Further Education Regional Council. She is currently a member of the South Gippsland Bass Coast Local Learning Education Network Board of Management and of the Foster Rotary Club. Cheryl’s interest in regional and local history is part of her strong commitment to Gippsland and its future.


January - March 2013 April - May 2013 June - December 2013

Member AppointedTerm Completed

No of Meetings Attended



David Gittins 2 3 11

Joanne Stringer 2 3 12

Loretta Hambly March 2013 2

Linda Giddy March 2013 2

Monique de Zwart March 2013 2

Nigel Gerreyn March 2013 2

Ormond Pearson 2 3 11

Julie Hocking March 2013 2 3 12

Liz Cruickshank March 2013 1

Dr Peter Whitley 2

John Mitchell 16 April 2013 3 12

Mark Dunsmuir 1 June 2013 10

Belinda Wilson 1 June 2013 11

Peter Vines 1 June 2013 8

Dr Cheryl Glowrey 1 June 2013 11

Member Attendance

Seventeen Board meetings were held during 2013.

Directors No. of Meetings Attended

At Institute Board Meetings


The role of the Board is to oversee and govern the Institute. It’s role is to make rules for its governance within legislative and policy frameworks. The Board is to strategically plan and ensure the Institute operates within this plan. The Board is to direct and exercise control over the Chief Executive in operationalising its plans. The Institutes function is to deliver educational services and utilise its state provided assets as effective as possible for the public benefit. The Board determines employment policies for staff to implement its objectives for the Institute. The objective of TAFE through all its activities is to ensure it is sustainable in the medium to long term and its practices are consistent with prudent commercial practice. The Institute must endeavour to maximise its contribution to the economy and wellbeing of its community and those industries it serves.

In addition to duties and obligations required by the Education and Training Reform Act 2006, the Constitution and by law, the Board must:• Take all reasonable steps for the advancement of its objectives;

• Operate in accordance with the economic and social objectives and public sector management policy established by the Government of Victoria;

• Provide all assistance and information the Minister, the Secretary or the Director, Higher Education and Skills Group may reasonably require from the Institute Board; and

• Ensure safe custody and proper use of the Common Seal of the Board.

Objectives Of The Board

Governance Of The Board

The governance of Central Gippsland Institute of TAFE (GippsTAFE) is provided by the Institute’s Board of Directors. The Board of Directors is responsible and accountable for:• Governing in a manner that ensures the Institute is efficiently and

effectively managed;

• Ensuring the population of the area is effectively served with technical and further education that best suits their needs; and

• Providing adult, community and further education services which are responsive to the needs of industry and the community as well as ensuring that all of its statutory obligations are met.

In administering appropriate governance the Directors ensure that the Board provides a clear direction for the Institute and ensures its sustainability and viability into the future.


Institute Board CommitteesThe Institute Board is supported in its corporate governance and management responsibilities by a number of Committees comprising:• Governance Committee;

• Audit and Risk Committee;

• Finance Committee; and

• People and Safety Committee.

The role of each Committee is defined by Terms of Reference which are approved by the Institute Board. The Terms of Reference establish the Committee’s responsibilities, composition, structure and membership.

The purpose of the Finance Committee is to:• Monitor and oversee the financial performance of the Institute against

budget targets and KPI’s ensuring appropriate human and financial resources are available. Make enquiries as to variances between actual and forecast performance.

• Obtain the relevant representations from management as to the business compliance and performance in the financial statements.

• Review financial information as to its completeness, reliability and accuracy and its relevance to stakeholders.

• Review and recommend to the Board acceptance of the annual budget prior to its release to the Higher Education and Skills Group (HESG).

• Review significant accounting and reporting issues and consider and understand their impact on the financial statements.

• Assess management’s initiatives to correct or enhance results.

• Review and recommend to the Board acceptance of any mid-year forecast changes reviews.

• Review and present KPI’s to the Board for approval.

• Develop and monitor the Institute’s Investment Strategy.

• Monitor the progress of major capital expenditure and make recommendations to the Board.

• Review financial information that may from time to time be released to parties external to the Institute, post to its release but subsequent to the approval of same by the Chief Finance & Accounting Officer (CFAO) in accordance with Financial Management Act and the Ministerial Standing Directions and the Board Secretary under the Constitution and commercial guidelines.

Serving members of the Finance Committee are:• Mark Dunsmuir (Chair)

• John Mitchell

• Joanne Stringer

The above are independent and not Executive staff of the Institute.

Other attendees were:Board Secretary and/or Acting Board Secretary, Chief Executive Officer, CFAO or Acting CFAO, Executive Director Academic Programs and Director Commercial Programs & Marketing attended Finance Committee meetings during 2013 by standing invitation.

Finance Committee


The Audit and Risk Committee is appointed by the Institute Board to: • Assist the Board and Governance Committee in exercising due care,

diligence and skills in relation to risk assessment, treatment strategies and monitoring.

• Oversee the sign-off of accounting policies.

• Oversee and advise on the acceptability, disclosure of and correct accounting treatment for significant transactions which are not part of the Institute’s normal course of business.

• Identify and monitor matters of accountability and internal control affecting the operations of the Institute.

• Monitor and review the effectiveness of management information systems and other systems of internal control.

• Establish and oversee and advise on the scope of the work, performance and independence of the internal auditor.

• Oversee and discuss issues from the work performed by the external auditor (VAGO Agents).

• Provide advice to the Institute Board regarding the engagement and dismissal of the Internal Auditor.

• Oversee GippsTAFE’s continuous improvement process.

• Oversee and advise on the development, implementation, and operation of the risk management framework.

Serving members of the Audit and Risk Committee are:• Ormond Pearson (Chair)

• David Gittins

• Belinda Wilson

• Vacancy presently being advertised.


Other attendees were:Board Chair, Board Secretary and/or Acting Board Secretary, Chief Executive Officer, CFAO, Acting CFAO, Executive Director Academic Programs, Executive Director Academic Support Services, Internal Auditor and External Auditor attended the Audit and Risk Committee meetings during 2013 by standing invitation.

The Audit and Risk Committee receives and reviews all reports from the Auditor-General or his agent and the Internal Auditor. Matters dealt with by the Audit Committee during 2013 included reports covering:

• Victorian Auditor-General’s Office Central Gippsland Institute of TAFE – Audit Strategy for the Financial Year Ending 31 December 2013

• Internal Audit Report – Review of Financial Policies and Delegations October 2013

• Internal Audit Report – Payroll Systems and Processes Review April 2013

• Internal Audit Report – Review of Purchase Cards and Taxation October 2013

Audit and Risk Committee


The role of the People and Safety Committee is to assist the Board in fulfilling its responsibilities relating to organisational capability with specific focus on workplace health and safety, leadership and talent development, diversity, human resources issues and remuneration. Functions include:• Review GippsTAFE’s Human Resources Strategy to ensure it is

consistent with GippsTAFE’s Strategic Framework and the human resources needs of GippsTAFE and is consistent with relevant legislation and Government policies.

• Review GippsTAFE’s strategic Workplace Health and Safety Policy and direction.

• Review and assess the effectiveness of GippsTAFE’s Human Resources Strategy and Policy.

• Review and assess the effectiveness of GippsTAFE Workplace Health and Safety policy and procedures with particular reference to achieving continuous improvement.

• Monitor compliance with the Human Resources Strategy and Human Resources polices.

• Monitor GippsTAFE’s compliance with relevant Workplace Health and Safety legislative obligations.

• Monitor GippsTAFE’s workplace health and safety performance including review against key performance indicators, progress of and management response to audits, review of remedial actions and the comparison of performance against industry benchmarks.

• Review and monitor risks relating to people and safety.

• Review audit reports referred to the Committee by the Occupational Health and Safety (OHS) Committee. Review management responses and monitor completion of agreed response actions.

• Reviewing and making recommendations on executive (GSERP) remuneration, performance and employment contracts.

• Monitoring Institute performance against KPIs.

Serving members of the People and Safety Committee are:• Julie Hocking (Chair)

• Peter Vines

• Dr Cheryl Glowrey


Other attendees were:Board Chair, Board Secretary and/or Acting Board Secretary and Executive Director Academic Support Services attended the People and Safety Committee by standing invitation.

People and Safety Committee

The role of the Governance Committee is to assist the Board in fulfilling its responsibilities relating to Governance issues.

Serving members of the Governance Committee are:• John Mitchell (Chair)

• Belinda Wilson

• Board Secretary


Other attendees were:Board Secretary and/or Acting Board Secretary attended the Governance Committee by standing invitation.

Governance Committee


The Board will provide all new Directors a thorough induction into the activities of the Board and GippsTAFE, its issues, current concerns, staff and current financial position. All Board Directors will receive the following:• An individual meeting with the Chairperson, the CEO and the Board

Secretary to discuss expectations and responsibilities and to explain terminology relevant to GippsTAFE operations.

• Provision of a comprehensive package of briefing materials including a full set of the latest financial information.

• A tour of relevant assets to meet with key staff.

• A copy of this Governance Manual and the Constitution.

The Board recognises that good governance influences the overall performance of the entity. Consequently, the Board will invest in training and development to improve its governance performance.• All new Directors will receive a formal induction programme.

• As decided from time to time, the Board may approve and provide training for Directors in order to enhance their capacity for governance excellence.

• In accordance with the portfolio Minister’s requirements, the Board will annually carry out a review of its performance and identify areas for further development.

• A budget for undertaking this development will be included in GippsTAFE’s annual program.

• On completion of any Board professional development, Directors may be required to submit a written report to the Board, at the discretion of the Chairperson.

Board Induction And Training

GippsTAFE Yallourn Campus


Institute ExecutiveThe Institute Executive is the prime leadership group responsible and accountable for establishing the leadership goals, direction and performance of GippsTAFE. The primary goal of the leadership group is the development and implementation of strategies that will increase the entrepreneurial and business acumen of the Institute.

In 2013, the Institute Executive consisted of:Dr Peter WhitleyMr Ian CarrollMr Jim VivianMs Carol ElliotMs Jenni Hardy

Mr Ian CarrollExecutive Director Finance and InfrastructureChief Finance and Accounting Officer (CFAO)Board SecretaryB.com, CPA, Reg. Tax Agent, Grad Ed (Leadership)

The Executive Director Finance and Infrastructure is responsible for Finance, Treasury, Insurance and Risk and accountability for assets of the Institute under the Financial Management Act. The primary role of the CFAO is to ensure that the Institute maintains a rigorous approach to financial accountability and its financial position is maintained and enhanced.

As the Constitution was upgraded on 15 April 2013 (Section 26) to incorporate a Board Secretary, the CFAO was appointed by the Board to keep the records of the Institute as he is qualified to act as a Company Secretary under the Corporations Act 2001.

Dr Peter WhitleyChief Executive OfficerDBA, M.Ed.Admin, Grad. Dip.Ed.Admin, B.Ed St, Dip.T (TAFE)

The primary role of the Chief Executive is to establish the direction of the Institute in line with the expectations and aspirations of the Institute Board. The Chief Executive is accountable for ensuring that the appropriate management structures and processes are in place to meet the strategic goals set for the Institute.

Ms Jenni HardyExecutive Director Academic Support ServicesGrad Dip HR, MAHRI, Dip Bus(Mgt)

The Executive Director Academic Support Services provides leadership and management across the Institute in the following key areas: customer service, student data systems and information, human resources, information technology and communications, library and operational support services, ASQA compliance and facilities management.

Institute Executive

The Executive Directors Academic Programs are responsible for the leadership and management of all educational activities across the Institute. Integral to the role is the emphasis on quality delivery of the Institute’s programs which meet our clients’ needs and expectations. In addition, it includes liaising and negotiating with government funding bodies and Higher Education and Skills Group.

Mr Jim VivianExecutive Director Academic Programs(Industry & Health)Grad. Dip. Ed. Admin, Dip T

Ms Carol ElliotExecutive Director Academic Programs(Energy, Communications, Business, Community & Foundation) B. Arts, Dip. AICD, Cert T, Cert HS

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Finance And Infrastructure

Summary results:GippsTAFE has finished a very challenging year with a result that after excluding those book entries to declare Earnings Before Interest, Tax (not applicable), Depreciation and Amortisation, ie EBITDA excluding capital was ($4.0M). Our aim was to breakeven.

The economic trading conditions prevented achievement of a significant revenue stretch budget in our Commercial Fee for Services activities where revenues were ($2.7M) down to budget. Even though we moved to a business philosophy of greater “user pays” and we achieved our targets for student enrolment fees, the actual mix of course delivery and the volume of subsidy claims able to be made to state government for hours delivered saw a shortfall to state government revenue budget of ($1.2M).

This situation only crystalised in December where remedial action was not possible.

The Institute has delivered significant Apprentice training again but fallen short in other categories for skills creation and skills building.

Salary management with lower revenues flowing through our pipeline was challenging; and salaries exceeded budget by ($680k) and were a continued focus throughout the year. Many corporate or fixed personnel were made redundant during the year to restructure the business albeit timing was lagged. Student contact hour data was not readily available as we introduced the new management system which compromised the ability to quickly adjust salary costs.

Goods and services were reduced and provided gains of $0.5M.

Overall the cash impact has been contained to less than $4M as we preserve working capital and investments to cover and maintain staff entitlements/liabilities.

Summary of ResultsFinancial indicators demonstrating the sustainable financial viability of GippsTAFE for 2013:

• Operating Revenue at $29.6 million

• EBITDA – ($4.0) million Government measure prior to funding rate changes >$1 (Funded Surplus)

• Actual Result (loss) including depreciation and provision adjustments of ($7.4M) (ex Capital Contributed)

• Actual versus Budget ($3.6M) - a variance loss of ($3.8M)

• Capital Revenue of $2.7M

• Aggregated result/(deficit) including revenue from all sources ($4.7M)

• Current Asset Ratio -1.30:1 Benchmark 1:1

• Net Assets of $90.0million

Actual total operating revenue $29.6M for the year was down ($3.6M) to the budget of $33.2M. Commercial revenue from all sources $10.0M ($10.0M 2012) versus budget $12.7M. The major variances are illustrated below:

• Chadstone and National Broadband Network (NBN) ($1.9M)

• Yallourn ($0.4M)

The Chadstone activity was down whilst the Federal election result was pending. We look forward to revenue growth in future years from the new campus development.

Salaries and On Costs incurred for the full year were $23.3M (2012 $27.7M) due to reduced revenue levels and after incurring redundancy costs associated with restructuring the organisation. Institute management imposed a number of measures including recruitment freezes and business case justifications to respond to adverse trading conditions and lower funding streams applicable in the year. The Institute will continue to focus heavily on the required level of staff to viably meet market demand in 2014. The goal being to achieve a composition of skills necessary to be nimble and responsive to the market whilst striving for employment stability for its core workforce who will serve those industries identified with jobs outcomes. Casual staff provide a buffer to changing economic conditions, the pursuit of opportunities and new ideas, and to assist with ongoing structural changes for the Institute in this fully competitive training environment.

Goods and services were $13.8M (2012 $14.0M) year on year, and $506k less than budget $14.3M. We were able to favourably control costs across all categories. Significant negative variances were non-teaching consultants ($290k) over budget due to the consultants engaged during the year to assist the Institute in submitting TAFE Structural Adjustment Fund (TSAF) bids. IT leases were over budget ($177k) mainly due to computer equipment for our various technology initiatives.

In summary, goods and services have been well controlled during the year and will be budgeted at similar levels in 2014.

Technology development during the year has included significant focus on the system development of the new Student Management System (SMS) which was operationalized with many challenges about midway through the year.

Balance SheetThe Institute’s balance sheet is strong, with total assets of $106.8 M and a working capital ratio of 1.30: 1

The net assets are $89.8M an increase of $1.7M (2012 $88.1M).

Current assets are $12.0M an increase of $3.4M from (2012 $8.6M).

Current assets are all liquid presently for cash flow management whilst we settle new student management systems and restructure the organisation.

Non-Current Assets $94.7M an increase of $6.4M on (2012 $88.3M)

This is due mainly to the capitalisation of the Student Management System licence $6.4M that was transferred from the State Government

Total Liabilities were $16.9M and $8.1M higher than 2012 ($8.8M). Mainly due to $7.0M funded from HESG in May 2013 repayable by November 2017.


Actual 2009

Actual 2010

Actual 2011

Actual 2012

Actual 2013

Budget 2013

000 000 000 000 000 000

Operating Revenue

Excluding FFS 26,012 24,575 30,467 27,674 18,950 20,416

Other Revenue

FFS 10,135 15,247 11,192 11,256 9,990 12,778

Capital Revenue 5,018 13,641 12,007 8,002 2,702 0

Total Revenue 41,165 53,463 53,666 46,932 31,642 33,194

Salaries and On-costs 24,803 26,978 28,188 27,743 23,272 22,552

Depreciation & Amortisation 2,316 2,413 2,759 3,076 3,151 3,112

Non-salary costs 9,504 11,292 11,915 10,174 9,937 11,164

Total Costs 36,623 40,683 42,862 40,993 36,360 36,828

Result from Continuing Operations including Capital 4,542 12,780 10,804 5,939 -4,718 -3,634

Add / Subtract Non Cash Items

Less Capital Contributions 5,018 13,641 12,007 8,002 2,702 0

Add Back Depreciation & Amortisation 2,316 2,413 2,759 3,076 3,151 3,112

Add Back Profit/Loss on sale of assets (42) 1 33 -20

Add Back Non Cash LSL Movements 669 -145 134 327

Funded Surplus / (Deficit) 1,840 1,552 2,267 867 (4,168) (175)

Summary of results

Variance Report Compared to: 2012 Actual

2013 Budget

000 000

Operating Revenue (8,724) -7,258

Salaries and On-costs 4,471 (5,191)

Goods and Services 237 990

Depreciation (75) 36

Total (4,091) -11,423


Building Act ComplianceThe Institute has maintained compliance with the Building Act 1993 (including amendments as at 1 July 2007) Essential Services with the conduct of audits and inspections which have been undertaken throughout 2013 at all campuses and corrective action taken to address non-compliance. The new projects have commenced at Chadstone campus and GippsTAFE Academy and are in the process of working with contractors to carry out Essential Services testing and audits.

Building Maintenance Report Throughout 2013, the Institute has self-funded a number of activities to maintain utilities, and the structural and physical appearance of our buildings so that a safe and high quality learning and teaching environment for GippsTAFE staff and students is provided. The importance of continuing to meet the regulatory and safety standards

across all GippsTAFE buildings is extremely high which, in turn, ensures a high priority for the Institute’s OH&S Committee.

The areas which have been a focus during 2013 have included; essential services requirements, cyclic maintenance schedules, preventative and safety maintenance, and works associated with ensuring new facilities are fully functional and meet operational and safety standards.

Capital Works ProjectsElectrical Training Yard developments at the new Chadstone facility (2012) were postponed with tender evaluations being extended late in the year and will completed in the early part of 2014.

Facilities Management

Academic Support Services

Information Communication Technology Infrastructure Upgrades to the server infrastructure and capacity at the Yallourn Data Centre have enabled the implementation of new applications including the Student Management System (SMS) to occur without incident.

Computing CapacityThe latest roll out of new desktop computers and laptops has been completed throughout the institute and the leases have been extended from four years to five to reduce the cost of future upgrades.

CommunicationsA new gigabit network link has been completed which has resulted in an upgrade to the Chadstone network infrastructure to enable high speed capacity across the network from Chadstone campus.

Business Process RedevelopmentThe ICT team continues to work on the Student Management System implementation and are currently engaged in a number of cost cutting exercises including a reduction in the institute’s telephone expenditure, software costs, disaster recovery and video conferencing.


Technical improvements to the Chadstone campus include a fully interactive auditorium with video conferencing facilities, a quad screen interactive display in the foyer, a multi-screen digital signage mosaic at the entrance and a digital art display on the wall capable of showcasing sponsors or marketing messages. A fully automated video conferencing facility on the third floor integrates with the main conference area providing increased seating and viewing capability.

Further enhancements to the foyer areas include a multi-colour tickertape digital banner to promote events and campus activities at both the Chadstone and Leongatha locations.

The institute is also the lead agency in the roll out of the State Governments five million dollar Technology Enabled Learning Centres (TELCs) project across Gippsland. The ICT manager was the technical lead, which involved development of a new digital learning centre in Morwell and high definition end points across the institute.

This project was proudly presented to the public by The Hon. Peter Hall MP, Minister of Higher Education and Skills and supported by local media on 7 November 2013.

Technical Innovations

GippsTAFE Chadstone Campus auditorium


The Institute’s Human Resources (HR) Department has responsibility for the management of staff recruitment, engagement and induction; staff employment terms and conditions; health and wellbeing initiatives; staff training and development; staff support and counseling programs; staff grievances and disputes; staff excellence and service awards; organisational and cultural development and change; occupational health and safety and industrial relations matters.

Some of the major activities and organisational change initiatives managed by the HR Department in 2013 included:• Wind up of a Student Management System (SMS) Project Office that

had been in place for four years to manage the Implementation of the new SMS within GippsTAFE’s environment. This involved a review of the functions being carried out, significant workforce planning activities to move functions over to normal business practice, redeployment and redundancy processes, and termination of staff.

• Establishment of GippsTAFE’s restructured Student Management Centre involving; consolidation of previous disparate areas and management structures, new position descriptions, redeployment and redundancy processes, recruitments, inductions, physical shifts of office, and significant cultural and process changes.

• Finalisation and implementation of the organisation’s new structural model with a key driver being a reduction of workforce costs. GippsTAFE moved from a campus based structure with salary expenditure of approximately $28m, to a Directorate (training delivery) based model with salary expenditure of approximately $22.5m. This involved major workforce planning issues with restructure of positions and responsibilities, internal recruitment, redeployment and redundancy processes, departure processes, realignment of roles, and significant change management and dispute resolution processes, and a significant communication strategy led by HR and the Institute Executive.

• Finalisation of negotiations, and implementation of a new Industrial Agreement for Trainers at the Chadstone campus. The previous Agreement nominally expired on 27 March 2012, with the last pay increase having been processed March 2011. An ‘in principle’ agreement was reached through conciliation at Fair Work Australia in November 2012, however further negotiations and work had to be completed to gain the approval of Higher Education & Skills Group/Department of Treasury & Finance. This was achieved mid-year and the new Agreement was approved by Fair Work Australia in July 2013. Implementation occurred in August 2013 with the resultant pay increases processed and back paid to November 2012.

Expenditure on staff training and professional development activities was more conservative in 2013, whilst still meeting our aims of growing staff expertise in critical areas. In addition, the HR Department was successful in securing funding from the VET Development Centre, to run specialist projects and development activities.

Some of the major highlights throughout 2013 included:• A major project on team effectiveness undertaken with the newly

established Marketing & Workforce Development Team.

• Customer Service benchmarking activities.

• Several staff undertaking activities related to understanding the compliance requirements associated with the Australian Skills Quality Authority (ASQA) requirements.

• Teaching staff undertaking the Diploma of VET Practice.

• A significant number of staff attending industry relevant conferences and seminars.

• Occupational Health and Safety and First Aid training.

• Online facilitation courses.

• Courses on student behaviour management.

• Courses related to efficient use of software programs in the Microsoft Office suite.

• A large number of staff formally upgraded their qualifications through further study and Recognition of Prior Learning.

• Several staff participated in industry placement programs to keep skills and qualifications current, in line with industry trends and developments.

• A number of teaching staff upgrading the currency of their qualifications for Certificate IV in Training & Assessment.

GippsTAFE is an equal opportunity employer and is committed to equitable work practices, provision of a healthy and safe work environment, and working in line with the Code of Conduct for the Victorian Public Sector. There were no issues identified that conflicted with these principles in 2013.

Human Resources


GippsTAFE advises that there was no lost time related to industrial disputes throughout 2013.

Institute staff participated in the annual State Services Authority (SSA) People Matter Survey. The Climate and Opinion Survey collects data on employee perceptions of the values and principles underpinning the workplace culture. It is carried out annually providing an opportunity to benchmark results year to year. 26% of our staff participated in the survey this year which means that statistical relevance is compromised, and could be within a variance of +/- 9% of the actual result recorded. All full time, part time and casual current staff were invited to participate; the response was made up of 59% full time staff and 41% part time staff; 58% of the respondents were female and 42% male, 15% held management positions and 85% were non-management positions.

The questions and results are grouped under the categories of:• Values

• Employment Principles

• Work Environment

• Job Satisfaction & Engagement

• Your Experiences

• Awareness of Organisational policies and procedures

• Bullying

In summary, the results indicate how employees are aware of our ‘behavioural policies’, such as Code of Conduct, Organisational Values and processes for reporting improper employee conduct.

There were some declines from the previous year’s survey in respect of ‘actions matching words’: accountability, communication, job security, and workplace wellbeing. Some of these factors can be attributed to the turbulent environment of late 2012 / early 2013 where a reduced budget meant significant loss of jobs, and uncertainty about the future.

Institute Executive and Senior Management immediately implemented a number of tactics to address some of the findings of the survey including:• Encouraging and recognising the flexibility being shown by employees.

• Leadership workshops that focused on addressing issues and fostering accountability and responsibility throughout all levels of the organisation.

• Workshops that involved staff and middle management in contributing to the strategic planning, budgeting, accountability/objective and KPI development, role clarity and definition of employee expectations.

• Involving staff in developing a revenue growth strategy for 2014, listening to new ideas.

• Workshops for supervisory staff on conducting effective performance appraisals and dealing with poor performance issues.

• Regular CEO Staff Forums to ensure staff hear first-hand about current issues, events and developments affecting GippsTAFE, and also providing the opportunity for questions.

• Improving communication strategies particularly in relation to organisational change.

GippsTAFE will again participate in this climate survey in 2014 with an aim of achieving a higher response rate from our staff, and improving those measures where our response percentages had declined in the 2013 survey.


Staff Excellence AwardsThese Awards are peer nominated and selected by a panel of representative staff and the Institute Board Chair. The Awards were in line with the Institute’s FIRST values – Flexibility, Innovation, Responsiveness, Sustainability, Transformation. Each winner received a framed certificate and testimonial outlining their achievements and $1,000. In augmenting these awards, the Chief Executive Officer selects an overall winner from the recipients of the above categories, who is awarded the CEO’s Award. The categories and winners for 2013 were as follows:

Award for FlexibilityGreg Logan – Senior Educator for Gippsland Integrated Health & Community Care Education Program.

Award for Innovation Nathan Johnson – Digital Marketing Officer

Award for ResponsivenessBruce Elvey & Darren Tierney – Maintenance Officers

Award for SustainabilityWendy Foord & Linda Jobling Children’s and Community Services Department

Award for TransformationCarol Riley – Education Delivery Coordinator Business and Community

CEO’s AwardGreg Logan Senior Educator for Gippsland Integrated Health & Community Care Education Program.

Staff Achievements

In 2013 the Institute celebrated a number of staff achievements. A presentation event was held towards the end of 2013 to recognise and reward staff with excellence and service awards.


Length of Service AwardsLength of Service Awards were presented for milestones which had been achieved throughout 2013. Staff received a framed Certificate of Recognition and a gift certificate.

10 Years Susan Lawrence – Disability Liaison Officer

15 Years Christopher Cooke – Teacher Plumbing Kristine Sapkin – Teacher Hairdressing/Beauty Adele Mangano – Teacher Tourism Narelle Naismith – Teacher Aged Care Malcolm Gifford – Finance Officer

20 YearsFiolmena Lea – Bookshop Printroom Barbara Vanner – Teacher Business Studies

25 Years Reginald Sporle – Team Leader Maintenance

Whilst some staff have been recognised for achievements and awards by being listed above, many other members of staff have also been responsible for outstanding efforts throughout 2013.


GippsTAFE Customer and Student Service Officers continued to provide a broad range of high quality services to meet the needs of both internal and external customers of the Institute. The Victorian Training Guarantee continued to provide challenges, namely continuing changes to the fee structures and eligibility criteria for Government subsidised training places, which has meant several changes to documentation and processes throughout the year. This has also meant continual professional development for staff to keep abreast of the changes and ensure that student eligibility checks are processed correctly, and the right fees are charged.

The Student Management Centre was restructured and throughout the year the team continued to assist students and teaching departments

with advice and practical solutions. In addition, all enrolments, amendments, certifications (both accredited and non-accredited), Academic Board liaison and statutory reporting to regulatory bodies, were processed. Staff spent significant amounts of time implementing and testing the new Student Management System (SMS). GippsTAFE went ‘live’ on the SMS in March 2013 on schedule; however, we continue to incrementally roll out functionality as required. There have been some significant ‘setbacks’ throughout 2013 due to some inconsistencies and shortfalls with the SMS; however, these have been worked through with the centralised SMS Project Team (TAFE ICT) who were funded by the Government for this purpose until the end of 2013. End of year processing has been challenging to meet the timetabled cut off. We look forward to utilising the expanded capacity of the product in 2014.

Student Management Centre

Students enrolled in government funded courses were required to pay a tuition fee and a student services and amenities fee in 2013, plus a materials fee (where appropriate). Concessions were available on proof of eligibility.

The Institute controls what it charges for tuition fees, but is encouraged by the State Government to set fees at commercially competitive rates. The Institute elected to charge fees at rates priced per individual course so as to be as flexible and competitive as possible in the marketplace. Course fee rates for eligible enrolments ranged from $0.45 per hour to $16.62 per hour with the median price being $2.17 per hour. The Institute elected to continue to cap student’s fees at the same amounts as 2012.

A Student Services and Amenities Fee (SSAF) of $0.50 per enrolled hour, was charged in 2013. The maximum SSAF payable was $300.00, with a minimum and concession rate both of $20.00.

In 2013, the SSAF contributed to funding the following services and amenities, specifically directed to enrolled students:• Student information booklets and materials;

• Staffing of Student Services, including Disability Support, and Apprenticeship Support;

• Library resources, online databases and staffing; and

• Subsidies for student amenities and recreation activities.

Fees And Charges


In 2013, GippsTAFE presented a number of awards to students, in recognition of exceptional achievements accomplished during 2012, as follows:

Outstanding Institute StudentSteven Shaw (Painting and Decorating)

Outstanding Institute ApprenticeSteven Shaw (Painting and Decorating)

Outstanding Institute TraineeKatrina East (Sport & Recreation)

Outstanding Institute Koorie StudentCrystal Burgess-Hogg (Health & Community Studies)

Outstanding Institute Vocational StudentAshlee Melhuish (Animal Studies)

Outstanding Institute Community Student – George Bates AwardMarion Jones (Massage)

Outstanding Student Warragul Campus – Board President’s AwardDenise Parker (Health & Community - Disability)

Outstanding Student Leongatha Campus – Southern & Coastal TAFE Alliance AwardMicarla McNeill (Health & Community - Disability)

Student Achievements


LibraryThe library has continued to meet the challenge of providing a quality service to Institute staff and students with library staff utilising personal development to multitask across the library, bookshop, Printroom and Records.

Over 300 resources have been catalogued and made available to support the five higher education / bachelor programs being offered in collaboration with the University of Ballarat Dual Sector Partnership at GippsTAFE Traralgon Academy. This includes academic writing, research and study skills materials.

Ninety streaming videos are now available on the Library catalogue fully accessible 24/7 and offsite to all students and staff.

Library staff have been heavily utilized to provide ongoing research, information and referencing skills sessions throughout the year in support of these programs. Library staff are constantly assessing the collection to ensure its relevance to courses taught.

Library staff are proactive in implementing new ways to deliver information literacy to students ranging from classroom sessions to one on one on demand assistance when required. The library staff also continue to provide a basic information technology helpdesk service to all library users especially students with a disability or those who are IT challenged.

We are constantly researching new ways to deliver information online via the Library Guides (LibGuides) which can be accessed on site and also offsite via the internet. These guides are an open access point for a huge range of resources from library-generated material, to articles and video content relevant to courses taught. Their importance to students is demonstrated by continued demand and an increased demand via

mobile devices. Mobile usage has doubled this year. Whilst we have not created many new guides this year we have expanded and added to those we have, regularly adding new links and removing obsolete material with the help of the inbuilt link checker.

The American Psychological Association (APA) Referencing for Nursing Students guide is still the most utilised Library Guide. Last year’s collaboration with the Plumbing Department, providing access to Apprentices academic calendar has proved very successful and will continue into 2014.

Database use is still a valued resource, with Australian Standards the most heavily used, followed by Cumulative Index to Nursing and Allied Health Literature (CINAHL), Nursing and Allied Health.

Central RecordsStaff training in the use of Electronic Records Management Archive (ERMA) software and has been pivotal in capturing and overseeing document registration and archiving across GippsTAFE and has been valuable in ensuring that archiving has been monitored to meet all Institute guidelines in a timely manner.

Library, Bookshop and Records staff have up skilled to ensure constant coverage of their areas.

Bookshop and Print RoomThe print room is currently in the process of updating and rebadging all Institute learning resources allowing for electronic use via Moodle. All multifunction devices are now established at all campuses and supported by online ordering of consumables and usage statistics.

The Bookshop is now consolidated at the Yallourn campus and continues to support staff and students across all campuses.

Library And Information Services


GippsTAFE is committed to the provision of a safe and healthy work environment for all staff, students, contractors and visitors. The Institute systematically reviews all policies and procedures related to Occupational Health and Safety (OH&S), to ensure relevance and effectiveness.

The Institute convenes an OH&S Committee to regularly monitor all injuries/incidents and internal and external audit reports, to assess trends for continuous improvement activities. The Committee also oversees the process for ensuring that OH&S matters are dealt with in a timely and efficient manner. All members of the Committee are trained and continually updated in the requirements of OH & S.

In relation to WorkCover and Injury Management, the Institute reports the following statistics for 2013:• The Institute had three Lost Time Injuries - injuries that required

medical attention and resulted in the person being absent from work for more than 24 hours;

• The Institute had a total of 8,490 lost hours due to Lost Time Injuries;

• The Lost Time Injury Frequency Rate was 7.49 injuries per one million hours worked;

• The average time lost per Lost Time Injury was 2,830 hours;

• The Institute also reports that the number of long-term (more than three years) WorkCover claims stand at 2; and

• There are three current (less than one year) claims.

The Institute continues to work on OH&S and Risk Management strategies, with a view to ensuring that the appropriate mechanisms are in place for proactive health and safety management.

Compensation Statistics 2011 – 2013

*Incident Rate refers to the number of reported injuries (both minor and Lost Time) per one million hours worked.

**Frequency Rate refers to the number of Lost Time Injuries per one million hours worked.

Occupational Health And Safety

2013 2012 2011

Lost time injuries 3 7 8

Minor injuries 1 2 4

Students 0 0 0

VWC Reported Students 0 0 0

Existing Long Term Claims

Less than three years 3 1 1

More than three years 2 2 2

Total attendance hours 400,678 557,482 556,718

Total hours lost 8,490 3,518 3,174

Incident rate* 9.99 16.14 21.55

Frequency rate** 7.49 12.56 14.37


Disclosures under The Act regarding the improper conduct of any officer of the Institute may be made to the following persons:

Protected Disclosure Co-ordinator:Executive Director Academic Support ServicesCorner Monash Way and Princes Drive, MorwellPO Box 3279, Gippsland Mail Centre, VIC 3841Phone: 5120 4539

Protected Disclosure Officers:Maxine de GraaffBusiness Development OfficerChadstone Campus41 Drummond St, ChadstonePhone: 9251 3000

Noelene BrennanExecutive Assistant, Morwell CampusCorner Monash Way and princes Drive, MorwellPO Box 3279, Gippsland Mail Centre, VIC 3841Phone: 5120 4533

Disclosures may be made orally or in written format, and may be anonymous.

Copies of the Institute’s Statement of Support for Protected Disclosures may be accessed via the GippsTAFE website: www.GippsTAFE.edu.au or by contacting one of the officers listed above. Copies of the Institute Protected Disclosures process may be obtained from the officers listed above.

During 2013:• No disclosures were referred for determination as to whether they

were public interest disclosures.

• No disclosed matters were referred to the Institute.

• No disclosed matters were referred by the Institute for investigation.

Protected Disclosures Act (The Act)


Institute StaffThe following people worked as employees of GippsTAFE throughout 2013:

ABDALLAH, TanyaADDY, KylieAGGARWAL TanejaAJOK, PriscilaALLAN, KennethALLEN, BruceANDERS, Fiona ANDERSON, Meagan ANTON, Louise ANTONELLI, FionaARCHER, SharonARMSTRONG, Gerald AUSTIN, Linda

BANKS, Linda BANKS, Paul BARNBROOK, Kelven BARRETT, LorraineBARTRAM, Julie BATESON, Catherine BEACH, Bradley BEACH, Bronwyn BELSTEAD, KarolynBERGEN, Steven BERMINGHAM, Barbara BERNHARD, Kim BERRY, KathrynBILLIMORIA, AndreaBIRT, Jeffrey BISHOP, MaureenBOAST, Garry BOMERS, Marchelm BONNICI, Peter BOON, Vera BOOTHMAN, Nicole BORG, PaulBOURCHIER, Christine BOURKE, KayeBOYER, Barry BRADLEY, LindsayBRADLEY, PeterBRADY, Helen BRAILEY, Janine BRAMLEY, Paul BRAND, Gayle BRANSGROVE, Colin BRAY, DebraBREMNER, Nicole BRENNAN, Janine BRENNAN, Noelene

BRIDGMAN, Shaun BRIEDE, Michelle BRIEN, Douglas BRIMBLECOMBE, HeatherBROOKS, Nina BROWN, Helen BROWNE, Mark BRUCE, Janet BUNTINE, Heather BURCOMBE, Daniel BURNEY, Leonie

CAIN, Joanne CAKE, Malcolm CALDWELL, GayleneCAMPAGNA, RomanoCARROLL, Benjamin CARROLL, Ian CARROLL, JulieCARROLL, VivianCHERRY, Alyse CLAVARINO, Abby CLAYMAN, Danielle COLARUSSO, FilomenaCOLLINGS, Kate CONSTANTINE, Jan-MareeCOOKE, Christopher COOPER, Stuart CORSER, Peter COSSINS, Peter COUPER, Ian CROSBIE, CeciliaCROSS, KerrynCRUICKSHANK, ElizabethCULPH, Barry CUNNINGHAM, Carol CURETON, CraigCURPHEY, Melissa CURTIS, Sandra

DADGE, Jane DALAMAGAS, MichaelDALGLEISH, Andrew DALTON, AndrewDARAIO, NatashaDARGUE, Anthony DARLING, Vanessa DASTEY, MariahDAVEY, Matthew DAVIS, Jodie

DAVIS, WendyDE GRAAFF, MaxineDE GRAAFF, Michael DE HAAN, FionaDE RUYTER, FrankDEAR, Merryn DENT, PaulineDENT, Simone DERBYSHIRE, JanelleDEVERS, Jennifer DI LULLO, Antonella DI LULLO, PeterDIAZ, FionaDICKER, Christina DILLON, Vicki DONALDSON, Brooke DOUGLAS, Monica DOUGLAS, Roderick DOUGLAS, Scott DRISCOLL, Jacqueline DRIU, Katarina DUNBIER, Gary DUNCAN, Dale DUNCAN, Michael DUNN, Stephen DURAND, Gabrielle

ELLIOT, Carol ELLIOT, Richard ELLIOTT, Dianne ELVEY, Bruce EVANS, David

FALLON, James FARMER, James FARNABY, Peter FAWCETT, Caitlin FEDE, VinceFELTON, RobertFENTON, Sam FERGUSON, Heather FERNANDO, Noel FINGER, JulianFLAHAVIN, Ashlee FLAHAVIN, MeganFLAHAVIN, Owen FOORD, WendyFORESTER, Margaret FRASER, KellieFREDERIC, Dorine

FREDMAN, Ian FREEMAN, Maxine FRENCH, Maree FULLERTON, Rachael

GAFA, Kerri-AnneGANE, Ry-BrockGARDENER, GerardineGARDNER, ScotGARRAWAY, Alan GAZZARD, Mitchell GIBSON, IanGIESSLER, SarahGIFFORD, Malcolm GILL, Claire GODDARD, Paul GOODE, Nigel GOUVEIA, JohnGOW, Christine GRAHAM, Jennifer GRAHAM, KarenGRANT, Malcolm GREEN, Kerry GREGORY, Sean GRIFFIN, Maggie GRIFFITHS, David GRIFFITHS, Jenni GRINHAM, Brian GRIST, Mark GROSS, Jason GRUENDLER-TODD, Simone

HAARBURGER, PaulHAGGER, GregoryHALLIDAY, Kim HAMMOND, Clifton HANSCH, Stacey HARDY, JenniHARDY, Kira HARDY, LeahHARDY, LindaHARMER, Cristopher HARRIS, Andrew HARRIS, Jodie HARRIS, Phillip HARRISON, Dianne HARRISON, ShannynHARRUP, Sharon HARVEY, David HAUXWELL, Neil

HAYES, Sionainn HEENAN, Kerry - LynneHEILY, Gai HENLEY, Richard HENRY, Carolyn HENRY, Kerry HEPBURN, Casey HERMAN, AndreaHIBBINS, Brian HIGGINBOTHAM, JohnHILL, Robyn HOCKING, Lisa HODGES, Daniel HOGARTH, StephenHOGGARD, Shona HOLTON-MCPHEE, Imogen HOUSE, Michael HOUSE, Robert HOWARD, Bernard HOWELL, PaulineHOWELL, Peter HUGGINS, Anne HUGHES, Leonnie HUGHES, RosemaryHUGUENIN, LynnHUNKIN, Matthew HUNT, NatashaHURRELL, OliviaHUSTON, LindaHYETT, Jacqueline HYETT, Mark

IBBOTSON, BrianINTERRIGI, VivienneIRWIN, Douglas ISIKLI, Haydar

JAGUSCH, Carolyn JANKOVIC, DragiJANSSEN, GiedreJASPER, Robert JESSOP, PeterJOBLING, Lynda JOHNS, Cameron JOHNSON, ChristineJOHNSON, NathanJOHNSON, Shaun JOINER, Tanya JOLLEY, Russell JOLLY, Malcolm


JONES, Geraldine JONES, Julie JONES, Laurence

KEE, David KELLOW, AimeeKELLY, AmandaKEMEL, Andrew KEMP, Suzanne KERR, Andrew KILNER, Brittany KILNER, Clifford KILNER, Haimish KILNER, Jennifer KING, Christa KING, Jeannette KING, Michael KING, Natalie KINGWILL, Amy KIRKHOPE, Jenni KUHNE, LisaKURRLE, JanKYLE, Christine

LA FONTAINE-KOHLMAN, Juliet LAIDLAW, Claire LAKE, Fay LAMPITT, SusanneLANGDON, Bruce LANGLEY, Jenna LANSDOWN, Susan LANT, Martin LAWLESS, AlisonLAWLESS, Carolyn LAWRENCE, Susan LAZARUS, Ruth LE, CarmenLEA, AnthonyLEESON, Donald LEESON, JenniferLENANE, MelindaLEWIS, Lucy LEWIS, MichaelLICCIARDI, Isidoro LIGHTFOOT, Paul LINAHAN, Ashley LINDSAY, Robin LINKLATER, AlisonLOGAN, Gregory LOMBARDO, Sonia LONG, Alan LONG, JacksonLOVE, Terrence LOVELAND, Angeline

MACGREGOR-DAVIES, ShaneenMACLEAN, Colin

MAGILL, David MANGANO, Adele MARMARA, Nola MARSH, Vanessa MARTIN, Janine MASON-WOODS, Michelle MATHER, Adam MCDERMOTT, Kelly MCDERMOTT, MichaelMCENIRY, Brendon MCFADYEN, Peter MCGOWN, AnnMCGRATH, Anthony MCKAY, DavinMCKAY, Yvonne MCKEE, Meaghan MCKENZIE, Jenni MCLENNAN, Jenifer MCLEOD, FionaMCRAE, Douglas MENZIES, JoanneMERCER, Carmen MERTON, Benjamin MIKIC LITTLE, Marie MILLER, Beverley MILLER, Katelyn MINGLIS, PersephoneMITCHELL, Gregory MITCHELL, Steven MOBOURNE, AlexisMOLONEY, JennyMONTGOMERY, Doug MOORE, Mandy MORELLO, Kerri MORRIS, Stephen MORRISON, Helen MULLUCKS, TheresaMURRAY, James MURTAGH, Krystal

NAISMITH, Narelle NATHAN, Lisa NEILSON, DavidNESTOR, Mark NICHOLAS, Davin NOBLE, Rhonda NOTT, Wendy

OAKLEY, Ken O'CONNELL, TheresaO'DONNELL, Lisa O'HARE, Eamon O'REILLY, Stavroula

PARSONS, Andrew PATEMAN, Sarah PATON, Doris PATTERSON, David

PAVITT, Verona PAYNTER, Kathleen PEARSON, Caroline PENNY, Alan PETERS, Christopher PHILLIPS, Geoffrey PHILLIPS, Jason PLACE, TimothyPOCKLINGTON, DeidreePOELSMA, TraceyPOIDOMANI, Alison PORTELLI, Angelo PORTELLI, Joanne POWELL, WaynePYE, Geoff

QUINLAN, Rachael QUINN, Peter

RANDALL, Ian RAYNER, JanetREDMOND, Heather REED, Melanie REES, Diana REES, Jenna REK, Hayley RENSHAW, TrevorRIAL, Dimitie RICHARDS, Jo anneRICHARDSON, Amber RICKARDS, Ailsa RIGHTON, CathrineRIJS, Paul RILEY, Bobbie RILEY, CarolROBERTS, BenjaminROBINSON, JasmineROBINSON, Maureen ROBINSON, Ralph RODE, Colin ROSCOE, AshleyRUTJENS, Wendy

SAMPSON, MelanieSAPKIN, KristineSAVINI, Kerrie SCHARL, John SCHNUR, Bradley SCHOLES, MarnieSCORSE, GiselleSCORSE, Jake SCOTT, Karen SHALLCROSS, Rodney SHAW, Kim SHEEHAN, Peter SHERRIN, William SHERRY, Amber SHIELDS, Ronald

SHORTER, JohnSIBSON, Graham SIDEBOTTOM, Kristin SIMPSON, Lisa SKEHAN, Rhonda SKICKO, Christine SKINNER, TiffanySMITH, Grace SMITH, Phillip SMITH, Roger SNAPE, Michelle SNELL, Kyra-BaeSOAR, Rodney SOLOMON-DENT, Lynnette SPORLE, ReginaldSTALKER, John STANISTREET, Dean STEELE, Jessica STEFFEN, DarrenSTEPHENS, Melissa STEPHENS, Raymond STEVENS, BrigittaSTEVENS, Lauren STEWART, Brett STEWART, Gregory STEWART, Helen STEWART, Ian STOKES, Julie-AnneSTRICKLAND, AlanSTROUD, Denis STUPKA, JacquelineSUMMERS, Ami SUMNER, Terrence SUTCLIFFE, Lorna SUTCLIFFE, Noel SUTHERLAND, Karen

TALBOT, Shannon TAMBER, NannitaTATE, Sarah AliceTAYLOR, AlisonTAYSOM, Janet TELLER, Darren TERRANOVA, Alexander THACKER, LeonTHOMAS, Ryan THOMPSON, PhillipTHORSON, JudithTIERNEY, Darren TORRIERI, TeresaTOWB, DanielTRAILL, Tamara TRAYLER, RandallTRELLER, Duncan TREMEWEN, Erin TUSCHEWSKI, AnnTYRRELL, Jodie

UHE, Kylie URE, Maryann

VAJDA, JuditVAN SLAGEREN, Allira VAUGHAN, Barbara VAUGHAN, Kerryn VERNON, Robert VINES, Peter VIVIAN, James VIVIAN, Julie VOIGT, MontiVOSPER, Duane VUILLERMIN, Debra

WADDELL, Kristy WALDRON, Catherine WALKER, Sharon WALKER, Trudy WALKER-HASSETT, Teresa WALL, Karen WALL, Lynette WALLACE, Bronwyn WALSH, Kristine WARD, MeganWARE, Paulette WARE, Rodney WASTENEY, StuartWATERS, Roy WATSON, AlisonWATSON, Lesley WATSON, TeaganWATTS, Phillip WEBB, Kathleen WEEKS, Rohan WELLS, ShereeWHITE, Peter WHITEHEAD, Laurence WHITLEY, PeterWILKINSON, David WILLIAMS, Deborah WILSON, AndrewWILSON, Ian WILSON, Sarah WINDSOR, Georgia WOOD, Darryl WOOKEY, Adam WRIGHT, Carolyn WRIGHT, Steven YATES, Nikita YEOMANS, DannyYEOMANS, LaceyYOUNG, Kirsty YOUNG, Melissa ZAFFINA, BrigittaZAFFINA, FionaZAMMIT, Emma ZIPKAS, Karen


Staffing Data

December 2012Head Count

June 2013Head Count

December 2013Head Count

Teaching Full Time Part Time Total EFT Full Time Part Time Total EFT Full Time Part Time Total EFT

Non-Contract

Female 18 23 41 32.2 9 17 26 19.4 9 16 25 18.8

Male 49 4 53 51.36 29 3 32 31.1 25 4 29 27.5

Contract

Female 9 14 23 18.8 8 6 14 12.8 6 7 13 11.18

Male 13 10 23 19.7 10 1 11 10.8 10 3 13 12.1

Casual

Female 29.99 30.94 31.28

Male 18.17 27.2 34.74

Sub Total

Female 27 37 64 80.99 17 23 40 63.14 15 23 38 61.26

Male 62 14 76 89.23 39 4 43 69.1 35 7 42 74.34

Non- Teaching Full Time Part Time Total EFT Full Time Part Time Total EFT Full Time Part Time Total EFT

Executive Officers

Female 1 0 1 1 2 0 3 1 2 0 2 2

Male 3 0 3 3 3 0 3 4 3 0 3 3

PACCT Non-Contract

Female 36 12 48 42.69 29 11 41 36.17 28 10 39 35.3

Male 20 0 20 20 20 0 19 18.6 17 0 16 15.6

PACCT Contract

Female 26 9 35 31.69 39 7 46 43.12 40 11 51 46.37

Male 11 3 14 13.4 15 1 16 15.6 19 3 22 20.8

Other Non-Contract

Female 4 0 4 4 1 0 1 1 1 0 1 1

Male 9 0 9 9 3 0 3 3 2 0 2 2

Casual

Female 29.99 32.86 37.3

Male 14.39 12.13 13.42

Sub Total

Female 67 21 88 109.37 71 18 89 114.15 71 21 92 120.97

Male 43 3 46 59.79 41 1 42 53.33 41 3 44 55.82

Total Full Time Part Time Total EFT Full Time Part Time Total EFT Full Time Part Time Total EFT

Female 94 58 152 190.36 88 41 129 177.29 86 44 130 182.23

Male 105 17 122 149.02 80 5 85 122.43 76 10 86 130.16

Institute Total 199 75 274 339.38 168 46 214 299.72 162 54 216 312.39


The Adult Community and Further Education (ACFE) Regional Council

The CEO Dr Peter Whitley is currently a member of the Gippsland ACFE Regional Council which has responsibility for the coordination of ACFE programs throughout the Gippsland Region. The Regional Council is a body that meets bi-monthly to contribute to the growth of ACFE programs through the provision of advice and discussion with the ACFE Board.

The Regional Council meets in locations throughout Gippsland in an endeavour to ensure community engagement by providers and others using the ACFE services. Regional Council seeks to represent the ACFE Community and ACFE Providers through to the Minister and the ACFE Board on all matters pertaining to access and the continued evolution of ACFE programs.

The CEO has been a member of the Gippsland ACFE Regional Council for five years and continues to play an important role in supporting the work and values of ACFE in Gippsland.

COMMITTEE for GIPPSLAND (C4G)The CEO Dr Peter Whitley, has been a member for the C4G for two years and has sought to represent the views of post compulsory education on the Committee for Gippsland. The C4G is a voluntary organisation made up of representatives from across the Gippsland business community. The Committee has been extremely proactive in supporting and promoting business initiatives that might build the economy and the economic base within the Gippsland Region.

In addition to C4G prompting business and economic development it also takes a keen interest in the development of individuals that might become community leaders into the future. To that end the C4G auspices the Gippsland Community Leadership Program that has been operating since 1996 and is one of the longest running community leadership programs in Australia.

Dr Whitley’s membership of C4G further enhances the link between economic development and vocational education. The prime goal of GippsTAFE is to provide highly skilled and accomplish persons able to work within the Gippsland business community and membership of this C4G is a substantial link in achieving this aspiration.

ADVANCING COUNTRY TOWNS - Lower Tarwin Valley District

The Advancing Country Towns – Lower Tarwin Valley District Project involves a cluster of small country townships and surrounding rural areas including Koonwarra, Buffalo, Dumbalk, Tarwin Lower, Stony Creek, Venus Bay, Fish Creek and Meeniyan located in central South Gippsland. While the Project Sponsor is the Department of Planning and Community Development, the project is owned by the South Gippsland Shire Council and the project steering committee is led by the Regional Manager Delivery, Regional Development Gippsland, Department of State Development, Business and Innovation. GippsTAFE is one of nine (9) organisations which comprise the Steering Committee.

The project has three overarching priority areas developed through consultation between agencies and stakeholders, community feedback and data, and endorsed by the Steering Committee. These priorities are:• Education Skills and Training (focussing on opportunities for young

people to remain in their local community)

• Employment and Economic Development (small business/enterprises and key industries)

• Embracing sustainable energy sources and farming practices.

Nine strategic interventions were identified and initiative proposals to address these interventions will be developed. These initiatives require specific partnerships to be established for implementation.

The Project commenced in February 2012 and will conclude by July 2015.

GIPPSLAND EDUCATIONAL PRECINCT (GEP)The Gippsland Education Precinct is a representative group consisting of Apprenticeships Group Australia, Latrobe City Council, Monash University, Kurnai College and GippsTAFE who have established an educational precinct on the grounds of the Monash University’s Churchill Campus. The GEP has been responsible and has contributed to bringing together educational partners that has seen greater numbers of TAFE to higher education pathways created, the securing of Regional Partnership Participation Programs and extensive work with the Smith Family to provide better access and support.

Major Committee Representation


The GEP has had and continues to have a pivotal role in the increasingly complex collaborative partnership arrangement were partners are coming together to provide superior opportunities for educational provision. In a number of ways the GEP has provided a role model for collaboration and it provides an example for the future way of doing business.

CEO Dr Peter Whitley has been a member of the GEP since 2006 and has been the Chair of the GEP Board during 2013.

Mr Ian Carroll is the Treasurer/Finacial Manager for the GEP.

GIPPSLAND SPORTS ACADEMYMr Jim Vivian, Executive Director Academic Programs (Industry and Health) is a member of the Gippsland sports Academy Board and

undertakes this duty to further and maintain GippsTAFE’s strong community engagement program.

The Gippsland Sports Academy is a community based organisation which provides developmental opportunity for young athletes within the Gippsland region. The Gippsland Sports Academy covers the full extent of Gippsland from the south-eastern fringe of Melbourne though to New South Wales border including the mountain communities of the Great Dividing Range.

The Gippsland Sports Academy seeks to help break down the obstacles and disadvantages for local athletes. Mr Jim Vivian has participated as Board member for a numb4r of years and is a keen contributor to youth access and participation.

GippsTAFE Morwell Campus


Directorate OverviewPlanning for 2013 delivery in the later stages of 2012 presented some significant challenges to which our staff responded to positively and we have seen many innovative changes to delivery throughout this year.

A major change commencing in 2013 was the re-structuring of all disciplines into Directorates rather than being aligned with a traditional campus structure. Four directorates were created: • Industry 1

• Industry 2

• Community and Business Services

• Energy and Telecommunications.

Qualifications allocated to each of these directorates were managed across the various delivery locations of the Institute to provide the most effective access for our clients.

A primary example of innovative delivery is the continuing success of the new Diploma of Community Health, a collaborative venture between GippsTAFE, Advance TAFE and Monash University (Churchill) funded through the Regional Partnerships Facilitation Fund (RPFF). This new program was developed with significant industry input and has been delivered flexibly in mode and time to enable people working in the Health industry to participate. Our first graduates will receive their diplomas this year. In addition, the delivery of this qualification utilised the newly-installed Technology Enabled Learning Centres providing ease of access for participants from a range of locations.

Many of the programs delivered by all directorates have been reviewed throughout 2013 in response to client requests to provide greater flexibility in attendance and modes of engagement. Consequently, retention rates have increased resulting in higher rates of successful completion for participants. Ensuring that all vocational education and training (VET) delivered by GippsTAFE was of the highest possible standard was an aim for all directorates and positive student outcomes are a testament to this aim.

Business & Community Programs2013 has been a busy and productive time for the Business and Community Directorate. Throughout the year, as changes to subsidy rates were introduced, staff have remained positive about the future, while also ensuring that productivity and compliance targets were achieved. To meet the challenges created by an increasingly commercialised environment, staff have developed innovative solutions to address the changes implemented and have responded positively to the new directorate structure.

Innovative changes in course delivery and increased client focus have resulted in enhanced success in the following areas:Children Services:The Institute has built a very positive relationship with Latrobe City and is now offering flexible delivery of the Diploma. The students enjoyed utilising the TELCs as part of their delivery and staff are enthusiastic about increasing usage of this new technology in 2014.

Animal Studies:Participation in this field is growing each year with the demand numbers for 2014 already showing upside in the VET in Schools (VETiS) area. The diversity of delivery within this course means that students find the course interesting and relevant. Increased industry-based delivery will be in place for some of the Animal Studies units in 2014.

Information Technology (IT):There was a significant increase in interest for the Certificate IV in IT this year due to the course being restructured with flexible enrolments throughout the year, and online delivery of most of the units within the course. All students were encouraged to attend classes weekly to monitor their progress and there was strong support from outside organizations by providing work placement and project opportunities. A few students have already applied for and accepted university places for 2014.

The introduction of a new course in interactive gaming in 2014 is very exciting for both teachers and students and already strong demand is being expressed.

Accounting:This year has been extremely busy in the accounting department. The TELCs was trialled in the accounting area with great success and this innovative practice of teaching and learning will be further developed and expanded in 2014.

It is pleasing to report that a number of our students from 2012 went on to further their studies at Monash University, Swinburne University and the University of Ballarat this year.

Outside School Hours Care (OSHC) Educational Support:2013 was very successful year for OSHC; the Diploma was particularly so as a result of strong associations with industry. These programs continued to experience great success with many students undertaking a pathway to further studies at university.

Professional Writing and Editing:In 2013 the new Certificate IV in Professional Writing and Editing (22203VIC) was introduced and has proven to attract an expanded target audience including VETiS students. Blended delivery modes have enabled students to meet regularly face to face thus overcoming the isolation of online study which is a barrier for some learners.

This overview highlights the success experienced by participants in programs delivered by the Business and Community Programs portfolio. This success forms a solid foundation for increased performance in 2014.

Educational Operations


The Gippsland Employment and Transitional Training Centre (GETT Centre)Disability Employment Service:GETT Employment, a Disability Employment Service provider, is now operating from five sites across Gippsland: Traralgon, Newborough, Morwell, Leongatha and Warragul and continues to assist people to gain employment within the region.

GETT Centre’s Disability Employment Service (GETT Employment) and GETT Centre Training staff have worked together during the second half of 2013 to arrange and oversee a number of work experience placements for students and GETT Employment clients with some great outcomes to date.

One client (a GETT Centre student and GETT Employment client) performed so well on work placement with a large department store that her direct supervisor spoke to the store manager about employing her. This resulted in a casual employment contract. The young person is proud to wear her uniform, feels like a worthwhile part of the team and is enjoying her job.

Another client (also a GETT Centre student and GETT Employment client) enjoyed a work experience placement with a large hardware store. The management and staff were so impressed with his enthusiasm and ‘can-do’ attitude that the managers of two local stores are now racing to see who can find a paid position in their store for him the quickest.

In addition, three other young people who are students at the GETT Centre or clients of GETT Employment performed so well in their work experience that the host employers are discussing possible employment after Christmas.

A young male adult GETT Employment client mentioned to his Employment Coach that he really wanted to be a mechanic but didn’t have the skills. He had missed a lot of schooling, had limited literacy and low self -esteem. His employment coach referred him to GippsTAFE’s SEE Program (Skills for Education and Employment). Having now commenced the SEE Program at Morwell campus of GippsTAFE, the young man now believes he can achieve his goal and his confidence has improved considerably. He has told his Employment coach after only a few weeks he now has friends, feels excited about the future and is looking forward to studying next year.

Workways Program:GETT Centre successfully conducted Workways Community tasters Access Program in January this year, following on from this success we were successful in tendering for two more Access Programs, another Community Tasters program and a new Customer Contact Program. These programs are delivered to long term unemployed clients over an intensive seven week period with the aim of reengaging them with education or employment and to date three clients have secured traineeships in the disability field, one has enrolled to undertake a Bachelor of education; and three more are considering entering the Diploma of Nursing program in 2014.

GETT Training:GippsTAFE’s GETT Centre is now offering training to students with a Disability in Leongatha. This year we had 12 students enrolled in our literacy and numeracy program with Yooralla. This popular program which utilises iPad technology is set to be delivered to all Yooralla students. We are currently in discussions with “Interchange” who are setting up a new service in Wonthaggi. They are also hoping to have enough participants to run a literacy and numeracy program on the iPads.

Students participating in the Transition and Work Education programs have experienced many levels of success and due to the successful implementation of these programs in the Latrobe Valley, we are now set to offer programs in other regions such as Warragul and Leongatha to assist young people with a disability transitioning out of specialist education and main stream education into further education or employment.

The GETT Centre has continued to build and engage with local community organisations and businesses through the Outdoor Work Program. Both students from the Work Education Program and MORE programs participate in these hands on program with excellent results including:• Work at Centenary House building a brick path and general garden

maintenance

• Traralgon Mens shed levelling grounds around the new shed

• SASI (Statewide Autistic Services) Morwell, working in and around the grounds to tidy and brighten the area for the clients

Foundation Studies


Students were also involved with the following community projects in which they participated in basic work and employment skills around landscaping and gardening;• Mardan Landcare Group

• Yallourn Rail Trail

• Mirboo North Rail Trail

• Lyrebird Walk

• Cumberland Street Kindergarten

GippsTAFE is now providing the Motivation, Opportunity, Recognition and Empowerment (MORE) program to multiple agencies and this is set to continue in 2014 with enquiries regarding enrolments received daily. The MORE program is expanding into the Baw Baw shire in 2014 and is working with agencies in the Bass Coast and South Gippsland Shires with a view to deliver a youth program in these regions. The ongoing success of this program is evidenced by the many positive statements from agency staff, parents and the students themselves; increased attendance rates, higher engagement and employment opportunities for students.

English as an Additional LanguageGippsTAFE continues to deliver diverse and engaging English as an Additional Language (EAL) program with some promising results.

A number of students successfully completed a Certificate II in Hospitality while undertaking studying with EAL. They are now confident and are applying for work and will continue studying with GippsTAFE to improve their English further until they find work.

Two students successfully gained employment earlier this year, one as an accountant and one as a contract worker in construction.

Ten of our students are now volunteering on two tailor made programs for our EAL students (an aged care program at Gippsland Multicultural Services and a volunteer simulated patient program at Latrobe Community Health Service).

The Foundation Studies programs continue to successfully meet the needs of these client groups with specific needs.

Koorie Unit:This year the GippsTAFE Koorie unit supported indigenous artists from across Gippsland to help launch an exhibition in honour of NAIDOC week, 7-14th of July.

The ‘Indigenous Artists Celebrating NAIDOC’ exhibition was held at the Stockyard Gallery in Foster. Acclaimed indigenous artist and former GippsTAFE student, Ron Edwards from Morwell, attended the exhibition. “Artists have been working with the GippsTAFE Koorie Unit and they have helped to get this show up and running for NAIDOC week. The GippsTAFE Koorie Unit has helped me get to where I am today as a successful artist with a job at the Latrobe Regional Art Gallery. I learned more about my culture from all the teachers and it’s a very good place for all community members to get a start in working” Ron explained.

Despite poor weather conditions the exhibition opening was well attended and the exceptional quality and number of works was recognised by organisers and guests alike.

“GippsTAFE is thrilled to be supporting this excellent local exhibition,” explained GippsTAFE representative Peter Corser.

“We recognise a number of the artists here as past (and present) students of the GippsTAFE Koorie Unit as well as other members of the South Gippsland Community. We hope the success of these talented artists will inspire others to pursue their interest in cultural arts and perhaps even join us for the Certificate III and IV in Aboriginal and Torres Strait Islander Arts in 2013/2014.”


Based at the Chadstone campus in metropolitan Melbourne, the Energy and Telecommunications Directorate focuses on training for the essential services utilities sectors. Consequently the Chadstone campus has purpose-designed and built facilities (completed in 2012) to cater for the specific needs of the Telecommunications, Gas and Electrical Supply Industry (ESI).

Throughout 2013 the Chadstone campus has delivered training to a total of 388 apprentices across all four years of the ESI Overhead Power Distribution qualification (lineworker). While most of these apprentices are employed by companies based in Victoria, the Institute also services clients in New South Wales and the Northern Territory under specific arrangements with these governments. To enhance the quality and relevance of training in the high voltage electrical supply industry, the Yard at the Chadstone campus is undergoing a million dollar upgrade. This upgrade simulates the networks existing in Victoria and enhances skills development in both overhead and underground infrastructure. The Institute appreciates the support and involvement of industry in the design and construction of this upgrade to the Chadstone Yard.

The national shortage of lineworkers has resulted in Chadstone campus designing two innovative solutions to recognise skills of existing workers. Through the Australian Skilled Migration scheme, lineworkers from other countries have participated in an intense 12 week program which qualifies them to work on the Victorian networks. These programs have successfully enhanced the skilled workforce of the electrical supply industry. In addition to overseas workers, Australians with an electrical qualification have participated in an “Electrician to Lineworker” (E2L)

program which recognised existing skills and focussed on training participants in lineworker specific skills. Again, this highly successful program has increased the capability of the industry.

Training in the telecommunications fields has continued to expand as the roll-out of the National Broadband Network occurred throughout Victoria and Tasmania. GippsTAFE is proud to be a preferred supplier of training for this significant infrastructure event and has been selected to do the training for a major component of the roll out in Tasmania working with Skills Tasmania. Specialist facilities at the Chadstone campus are utilised by the NBN Co for research and development which in turn informs the skills training required in the field.

The Energy and Telecommunications industries provide essential services for the state of Victoria and beyond. It is therefore essential for the Institute to be advised by the leaders of these industries. This is achieved through an Industry Advisory Board which comprises senior decision makers from our client groups: Powercor/Citipower, SP AusNet, Jemena, Zinfra, United Energy and Energy Safe Victoria. Close collaboration between the Institute and these stakeholders is imperative to ensure that the training provided meets current industry standards and expectations. Safety is a ‘non-negotiable’ across all industries and training provided by the Institute places high importance on embedding safety in all delivery.

GippsTAFE looks forward to continuing its close collaboration with leaders of the utilities industries to create a centre at Chadstone renowned for excellence in training.

Energy and Telecommunications


In 2013 GippsTAFE continued its strategic plans to develop and grow opportunities in higher education with the University of Ballarat (now called Federation University) through the Dual Sector Partnership (DSP). This has seen the addition of two new degree programs to the suite of programs now on offer through GippsTAFE. The two new programs in Sport Management and Engineering have received strong community support.

The Higher Education Department now have students enrolled in the following qualifications:• Bachelor of Applied Management

• Bachelor of Teaching

• Bachelor of Engineering Technology

• Bachelor of Sport Management

• Associate Degree of Education and Training

• Graduate Certificate of Education (Tertiary)

• Master of Education Studies

To support the delivery of higher education programs in our community the Institute has received funding from the DSP for a fit out of a Higher Education Centre within the GippsTAFE Academy. The design and tender activity has now occurred with the centre expected to be available early in 2014.

The success of GippsTAFE Higher Education Programs has seen the recent development of a “learning model of delivery” which will enhance the current activities. To support the growth of Higher Education at GippsTAFE a Strategic Marketing group has been established which will have the objective of expanding the program into the region and particularly other locations.

Higher Education


The Industry Programs is a new Directorate at GippsTAFE in 2013. The Directorate is made up of two portfolios: one being traditional trade delivery areas mainly at the Yallourn campus and the second being a mix of program delivery areas across all of the Gippsland campuses.

2013 has been an extremely challenging year with significant structural change occurring at the start of the year combined with the rollout of the new Student Management System and the introduction of a range of increased student tuition fees.

Notwithstanding all of these challenges, the Industry Programs Directorate has performed extremely well with each department contributing to the positive result.

Construction and SafetyThis is a program area in 2013 that has been directly affected by the efforts of private providers. Our instructors are not only qualified but also experienced and have an understanding of the requirements of industry. GippsTAFE continues to deliver training in the high risk licensed areas of Construction Induction and Power Industry Induction.

We have had staff delivering training and assessment services in the Philippines early in the year and a very busy year working with Fulton Hogan (a major supplier of civil works contracts for the Victorian government) keeping their staff and sub-contractors compliant with the new Workplace Health and Safety Regulations. We have delivered the Certificate IV and Diploma in OH&S online and are looking to expand this program with the new Workplace Health and Safety course in 2014.

Building StudiesEarly 2013 was subdued in the building industry with apprentice numbers dropping. Teaching positions were rationalised to bring the department back to a sustainable ratio of fulltime and sessional staff. Apprentice numbers have hopefully stabilised. The departments making up Building Studies; Carpentry and Joinery, Painting and Decorating, and Furniture Making, were all affected.

Hair and BeautyHair and Beauty is one of the departments that combined across campuses and this has allowed the department to utilise staff across the institute. Hair and Beauty has continued its close working relationship with Schwarzkopf, Dermalogica and industry, hosting their Essential Looks Evenings (current trends in industry). This gives staff the opportunity to keep current with the latest trends. Student numbers from East Gippsland have steadily increased and the move into an e-learning delivery strategy with Pivot Point (Student Resources Program) gives students and employers access to engaging training from the salon or at home across the region.

Hospitality and TourismHospitality and Tourism is another area severely impacted by changes to Government subsidies. 2013 saw major changes to staffing and a concerted effort to re-establish ourselves with industry. We have had great success at this year’s AusTAFE’s Cookery Competition with five GippsTAFE students competing at state level and receiving medals and one of our 3rd year apprentices go on to compete at the national level and take out the silver medal.

Teaching staff have also had the honour of being invited to judge at state and national levels.

Short courses have continued to grow with the Responsible Service of Alcohol (RSA) and Hygiene course. Pilot programs utilising the Technology Enabled Learning Centres (TELCs) to reach out to the wider community are progressing well. The Tourism department has also been utilising TELCs to pilot some programs and is expecting growth in this area in 2014.

The student placement program at Heron Island has been a great success with eight students travelling there for placement and all eight being offered ongoing employment. The department is gearing up for a new training package in 2014 and looking forward to next year.

EngineeringThe Engineering department has remained reasonably stable over 2013 however the funding cuts to Recognition of Prior Learning (RPL) programs has caused a drop in revenue.

New Certificate IV and Diplomas courses with pathways to a newly developed Bachelor Degree course has begun, development of the course and a new Engineering Hub set up in Building “G” at Yallourn campus. This is sponsored by the Engineering RPFF program and donations from industry. This program was originally in partnership with Monash University now Federation University. This program utilises industry collaboration in the development and delivery strategies to meet local industry training needs.

AutomotiveAutomotive has had a reasonably stable year however the Panel Beating department has felt the effects of private providers and this has led to the department shifting mainly to “on the job” training. We have had staff in Papua New Guinea again this year delivering Certificate II in Automotive Mechanical Air Conditioning and Diesel Technology courses at a variety of locations.

VETiS Student numbers have increased in West Gippsland and apprentice numbers are steady. The department is working closely with Advance TAFE and Chisholm TAFE on utilising the new links through the TELCs to share resources.

Industry Programs


PlumbingThe Plumbing department has again had a steady increase in apprentice numbers. A new Certificate IV course has attracted good numbers and looks to be expanding in 2014. Plumbing Industry Commission (PIC) exams have again had very good results reflecting the quality of the training being delivered by GippsTAFE.

HorticultureHorticulture has experienced a strong growth in Fee for Service; working to supply industries such as Fulton Hogan and Citywide training in AgVET Chemical Users Course and Refresher Courses. The Horticulture department has continued to grow relationships with Latrobe City, Department Environment Primary Industries, Parks Victoria and Gippsland Water and this has allowed us to offer training in actual working environments giving students exposure to current trends and practices.

ElectricalThe Electrical department has continued to evolve after major changes at the start of the year and this has allowed for a new structure and leadership within the department. VETiS numbers have been good and short courses in Portable Appliance Testing (PAT), Disconnect-Reconnect and Licenced Electrical Assessment (LEA) have all been well attended. The new Lab-View and Lab-Volt equipment is being utilised and student interaction with this technology has improved results markedly. Instrumentation has had a very good year attracting industry back to GippsTAFE and also being involved with funding from the Telematics Trust to help us develop online resources.

Plumbing class room at GippsTAFE’s Yallourn Campus


The commencement of 2013 saw the Institute embark on a journey of change. The creation of the Health Directorate resulted in bringing together a diverse range of programs from across five campuses under one leadership team. As staff moved into and out of roles, a large amount of our energy throughout the year has been spent in ensuring staff were aware of their requirements and were receiving the support they needed, particularly in the area of ASQA compliance. Steering such a diverse group with a mix of levels of experience in the TAFE workforce has proved to be both a challenging and rewarding role.

The Health Directorate has performed very well against budget, achieving a positive operating surplus. Our classroom numbers were well maintained across the directorate, however further changes to course funding levels and prices will continue to impact on our student numbers and the viability of delivery for a range of our courses. Our leadership team spent time evaluating all of our programs and their future viability, implementing change and developing improvement strategies for the future. The directorate continues to liaise with industry to create new opportunities and cement a positive reputation. Work is nearing completion on our initial application phase to deliver the Diploma of Nursing course from 2015. The registration process is lengthy and will take up to 12 months for approval to be granted, and so with our current registration to expire at the end of 2014 this application will be lodged in January 2014.

Areas that have traditionally performed well in generating Fee for Service income, continued to do so. Our staff deliver a range of Department of Health and Ageing funded programs. The funding agreement for Age Care Workforce Vocational Education Training (ACWVET) Skill Sets was extended to June 2014. The department successfully met all targets, delivering 220 units as part of the initial agreement. As of December 2013, 60% of the remaining 175 units have been delivered, and being offered the extension to the funding agreement so readily is a testament to the ability of our staff to meet targets and deliver a quality product. The quality of the program is highlighted by the feedback from participants. Comments emphasised the passion, depth of knowledge and experience of our teaching staff, which is extremely pleasing for all involved in the program.

The first part of the Dementia Rhythm of Life Drumming program was completed in May. The participants had a wonderful time over the duration of the 10 week program. A DVD of the program was produced and used to highlight the projects achievements and discuss any issues raised throughout program. The Rhythm of Life Drumming was also presented in two concurrent workshops to the Alzheimer’s Australia

annual conference in Hobart. Delivery commenced on the Dementia Breakfast Series in the second half. While initial bookings were slow to come in, feedback has begun to filter through the local business community and further bookings are starting to flow in for delivery of sessions in 2014.

Our partnerships with industry stakeholders have progressed steadily. Staff have been involved in the delivery of a range courses including Manual Handling, Dementia, Medications Administration, First Aid and CPR updates to industry, as a part of an expanding suite of programs designed for the aged care industry as annual competencies. The current Alzheimer’s Australia Victoria agreement for the delivery of dementia training across Gippsland runs through until the middle of 2014.

Staff successfully delivered training to the Department of Human Services across the Southern region (Gippsland and Dandenong regions combined). The DHS suite of training includes Person Centred Active Support Workshops (PCAS), Autism Workshops, and Provide Behaviour Support Workshops, Diploma and Advanced Diploma of Disability and Certificate IV in Disability (trainees). The relationship with DHS continues to grow and we look forward to exploring further training opportunities with them.

After the initial preparatory phase in 2012, our Regional Partnerships Facilitation (RPFF) funded Diploma of Community Health commenced with students in February 2013. This course was designed in collaboration with GippsTAFE, Advance TAFE and Monash University Gippsland, to provide Gippsland students with a pathway higher education delivered in the region. From the offers made to students at GippsTAFE, 75% of those students have continued through to completion and will graduate at ceremonies across the Institute in February 2014. Our first year has presented some unique hurdles due in part to the nature of working within a collaborative partnership. The feedback we have had from students, their employers and from teaching staff have been very encouraging. We believe we have developed the right course for the skills that are needed in the sector. The Diploma of Community Health pulled together staff members from across several of the health & community studies areas, forging closer working relationships across those disciplines. The application for accreditation with ASQA has been lodged and it is anticipated that the 2014 students will enrol in a fully accredited course in February.

Particular highlights for the year included staff and students participating in the annual Job Skills Expo at Lardner Park. This expo provided us with a wonderful opportunity to showcase our directorate offerings to local

Health Programs


secondary students. Energetic staff and students from the Fitness and Massage areas provided visitors with hands on interactive activities including seated massage and jump tests. Other areas provided static display including mobility aides, and anatomical dummies. To gain experience in a practical setting students participated in setting up and running Massage Clinic days at the Morwell campus. This was an invigorating experience for students and staff, providing quality learning in a real life setting. Outdoor Recreation students participated in an overnight camp at Wilsons Promontory, providing the students with a valuable (if wet) learning experience.

Of particular note was the huge success of the Institute Open Evenings for the directorate. Health staff participated with great enthusiasm, with representatives present at five campuses. Formal presentations were conducted at Yallourn, Warragul, and Traralgon, with the Traralgon presentations being video conferenced to Leongatha. We had large numbers of prospective students attend the Warragul and Traralgon sites, which was very pleasing for everyone involved.

We celebrated the success of several students through the year. Cameron Juha Completed a Certificate IV and Diploma in Outdoor Recreation and commenced study in the Bachelor of Sport Management through the University of Ballarat in July. Cameron has gained local employment in the fitness industry and is well on his way to achieving his goals. Nursing student Helen Woods completed the Diploma of Nursing, gaining her registration as an enrolled nurse in July. Helen has now gained entry into the Mental Health Graduate Program with Monash Health, with plans to go on to gain a Bachelor Degree in Nursing. These students were featured in the spring – summer edition of GippsTAFE’s in focus publication.

As the year draws to a close, it is pleasing to reflect on some of the achievements of the Directorate staff and students, with a view to building on these successes for the future.

Nursing practical class room at GippsTAFE’s Leongatha Campus


This year saw the establishment of the Technology Enabled Learning Centres (TELCs) - state of the art video conference capability. The TELCs initiative has at its core a partnership arrangement between three TAFEs, Advance, Chisholm and Central Gippsland. This initiative has been funded through a three year $5m grant from the Victorian Government.

The TELCs are a direct response to a key recommendation of the Gippsland Tertiary Education Plan. Based around offering increased flexibility it is envisioned that greater numbers of students, particularly those in more isolated communities will in the future be able to engage with a wider range of educational programs. The TELCs will transform the way in which TAFE delivers training taking the blended delivery model to a new level, particularly as it is applied to skill based training.

During 2013 the focus has primarily been on equipment installation, developing staff capability along with establishing a number of administrative protocols to promote ease of access for students when having to work across the partners. Phase 2 (2014+) will see the expansion of the technology eventually involving some 20 different locations across Gippsland. The breadth of courses offered via video conferencing will increase along with the technical capability of the partners. During this phase issues associated with recording, storing and the ability to play-back classes on demand will also be worked through.

The Technology Enabled Learning Centres

From L-R: Chair of Advance TAFE Board Scott Rossetti, CEO Advance TAFE Shaun McDonagh, Minister of Higher Education and Skills The Hon. Peter Hall MP, CEO Chisholm Institute Maria Peters, Member for Morwell Russell Northe, CEO GippsTAFE Dr Peter Whitley.


OverviewGippsTAFE has successfully maintained its off-shore delivery of products and services throughout 2013. This Institute has continued to focus on delivery in Malaysia and Papua New Guinea as well as undertaking Linesman assessments in the United Kingdom in partnership with VETASSESS as part of the ‘457’ Australian Government VISA strategy.

Strategic ApproachThe Institute has focused heavily in 2013 on expanding business opportunities outside of its core clients to ensure the sustainability and growth of the business. GippsTAFE now delivers training across three mining sites in Papua New Guinea and has signed four new partnership agreements with both training and industry organisations within Malaysia and Papua New Guinea to partner on upcoming training opportunities.

Another key strategy for 2013 was to collaboratively work with our Victorian TAFE partners to tender for opportunities previously not available to GippsTAFE. We were successful in an Indonesian collaborative partnership with Holmesglen TAFE and Box Hill TAFE which will occur across 2014.

Building on our existing delivery model for off-shore, we successfully extended this model for a new client within Malaysia resulting in a three year auspice agreement with SAE Institute (Malaysia) for the delivery of dual-badged qualifications.

Risk Management StrategiesRisk management is a core component of our International business. Our relationships with our international clients provide strategic and risk mitigation. The Victorian Government business offices and the Department of Foreign Affairs and Trade (DFAT) website provides advice

and warnings as required. GippsTAFE has strategically appointed “Country Client Managers” for both Malaysia and Papua New Guinea to provide specialist advice as required on strategic and operational risk management. GippsTAFE is also a member of the VIEC (Victorian International Education Cluster).

MalaysiaOur partnership with Curtin Sarawak continues to provide quality training across four programs in technical vocational and education training for the Sarawak Oil and Gas region.

The four auspice programs are as follows:• Diploma of Process Plant Technology

• Diploma of Business

• Diploma of Occupational Health & Safety

• Diploma of Instrumentation and Control Engineering.

We have over 270 enrolments and 80 graduates for 2013.

The Victorian Government business office based in Kuala Lumpur has worked extensively with GippsTAFE throughout 2013 to increase business opportunities and partnerships across Malaysia. GippsTAFE now has three formal memorandums of understandings in place with two Polytechnics (Pusat Pembangunan Kemahiran Sarawak (PPKS) and SAE Institute) and an industry partner (Beyond Petroleum).

A total of fourteen visits to Malaysia were undertaken by GippsTAFE staff in 2013.

International


This year GippsTAFE was on the world stage again with two senior staff presenting at an international conference – the 2013 Special Olympic Conference in Kuala Lumpur, Malaysia. Presentations occurred on how to teach literacy, numeracy and communication skills to a cohort of students with varying levels of intellectual disability. Predominately using iPads and apps to teach this cohort and has been found to be ground-breaking delivery in the TAFE environment and very successful.

A case study on Dyslexia exploring learning theories and frameworks with a diverse student cohort and how to differentiate the curriculum for effective learning and teaching occurred. GippsTAFE staff also presented at conVerge13 on the possibility of using iPad apps to capture workplace assessment evidence.

Papua New GuineaGippsTAFE has maintained its core partnership with Ok Tedi Mining Ltd. with offshore training including the following programs:

• Certificate IV in Training and Assessment

• Diploma of Vocational Education and Training

• Certificate III in Instrumentation and Control

• Diploma of Instrumentation and Control Engineering

• Certificate III in Surface Extraction

• •Certificate II in Automotive (Air Conditioning) and High Voltage.

We have also successfully completed non-accredited industry skill-set training for Oil Search Ltd. in the areas of Genset Diesel and Toyota Light

Vehicle as well as a “Building Supervisor” short course training for Star Mountain Institute of Technology.

GippsTAFE has recently signed a partnership agreement with Port Moresby Technical College to utilise their surrounding facilities to enable GippsTAFE to offer skill-set training services throughout the Port Moresby and surrounding regions in Papua New Guinea.

In 2013, GippsTAFE has also successfully completed consultancy work with the Commonwealth of Learning for the development stage of a phased introduction of flexible and open learning approaches for the Technical and Vocational Education and Training (TVET) Division of the Department of Education in Papua New Guinea.

A total of twenty visits to Papua New Guinea were undertaken by GippsTAFE staff in 2013.

Other International ActivityGippsTAFE and VETASSESS have continued partnering to provide VET qualification assessments in line with individual assessment requirements to gain an Australian ‘457’ VISA in the skills shortage area of Lines workers. A total of two visits to the United Kingdom were undertaken by GippsTAFE staff in 2013.

In addition to the consultancy work GippsTAFE has provided for the Commonwealth of Learning in Papua New Guinea, additional consultancy occurred in Tonga. The Director, Business and Community Programs co-facilitated the five days Pacific Regional Forum on Flexible Learning that was held in Tonga. Senior government staff attended the forum from all eight commonwealth countries within the region.

Also a visit to Tonga was undertaken by GippsTAFE staff in 2013.


A business unit restructure during 2013 saw the Business Development, Sales and Marketing team become the Commercial Programs and Marketing Directorate. This formal bringing together of the sales and marketing functions of the Institute, and introduction of several new faces in the team, were significant milestones in building the capability required in the growing, challenging and competitive education environment.

Changes to Government arrangements, cuts and the associated impact on GippsTAFE continued to cause a diverse and significant impact on the Institute. The challenge being to grow revenue required continual emphasis and focus to achieve the best results possible in the climate.

Significant revenue highlights of the 2013 year included:• The Chadstone Energy and Telecommunications team made significant

in-roads with industry during the year, including winning quite significant proposals for:

• delivery of telecommunications traineeships in Tasmania under the sponsorship of NBN Co. and funded by Skills Tasmania;

• training provision for Telstra on a panel managed by Ross MTC;

• interstate (QLD) training of linesman with Geiger.

• electrical theory and pre-VESI training for Zinfra Services.

• delivery of four 30 day block telecommunication training for ISGM.

• three 6-week assessment programs for groups of offshore lines workers for Tenix (the industry pilot program), for Zinfra Services, and also for Thiess.

• a delivery partnership with a competing telecommunication RTO to undertake contract work for them as part of an Access Program tender they had with Telstra. This was a significant achievement and lends itself to future collaborative industry activity.

• VET in School (VETiS) activity across 32 courses with 28 Gippsland-wide schools, exceeding budget.

• Continuing discussions with the Federal Government on possible new opportunities that may be available under the new “Skills Connect” funding source.

• The launch of three Regional Partnership Facilitation Fund (RPFF) projects in Health, Hospitality and Engineering.

MarketingMonash University Open Day (Sunday 25 July)The Monash University Open Day was a success with over 4,000 people in attendance. The main areas of interest were Nursing Pathways and the Dual Sector Partnership (DSP) Higher Education offerings. From the day we had considerable enquiries. There was clarity sought by the public around Pathways offered in 2014 given the change over from Monash University to Federation University. We assisted where possible to collaborate with our university partner.

New Style Guide A one page GippsTAFE style guide has been created to guide staff on the use of our logo. The marketing department has also issued a new email signature to ensure that all staff are ‘On Brand’. Development of a Customer Service’ booklet to induct, train and standarise staff effort on this aspect of our business is underway.

Marketing collaboration with Advance TAFEGippsTAFE and Advance TAFE worked together on a joint branding campaign focusing on the two TAFE’s working closer in the future, with a potential recruitment campaign being rolled out in January/February 2014 when we are in full swing for enrolling students.

Job Skills Expo (Tuesday 30 July, Lardner Park)The expo was a successful event with over 100 exhibitors and nearly 2,500 students involved on the day. Feedback showed a high level of satisfaction from participants as well as plenty of recognition for the effort and quality which GippsTAFE put into the event. GippsTAFE provided young people with useful information and incentives to think broadly about their future pathway. The initiative of a ‘free photo booth’, ‘free balloons’ and ‘chance to win an iPad’ were a hit with the students. Every student received a free goodie bag of corporate items. The quality of branding at the event ensured that GippsTAFE stood out amongst the competitors

Launch of 2014 Campaign‘The Choice is Yours’If there is one thing that GippsTAFE is big on, it’s choice. Choice enables students to find their perfect fit, giving them the flexibility to find their passion. Our new marketing campaign featured print, radio, television, shopping centres and local signage, and embraced the concept of choice with a range of creative executions revolving around the core message ‘The Choice is Yours’ at GippsTAFE. We believe this was a positive way to promote the institute, positioning GippsTAFE as a place where people can not only choose from a wide range of courses, but also make meaningful choices that will help shape their future.

Commercial Programs & Marketing


GippsTAFE Business Networking LuncheonsIn 2013 GippsTAFE adopted a new approach to industry networking. Replacing the previous annual Industry Awards Night, GippsTAFE held four networking evenings targeting specific industries. These nights aimed to act as a ‘feel good’ to clients, to thank them for their support and to further build relationships. All were well attended.

• Hospitality, Events & Tourism Networking NightGuest Speaker: Elizabeth Chong

• Community Services and Health Networking EveningGuest Speaker: Dr Sally Cockburn

• Gippsland Secondary Schools Networking EveningGuest Speaker: David Parkin

• Business Networking LuncheonGuest Speakers: Jason McCartney, Emma Welsh and Tom O’Toole

Farmworld 2013With an estimated 50,000 people in attendance over four days, Farm World 2013 was certainly a huge event.

The stand really stood out in the Pavilion and the giveaways were very well received. A total of 1,200 show bags were given away over the course of the event. The photo booth was a particularly good addition to the stand. Staff were able to encourage people to have a photo taken, providing the opportunity to give them a course guide and discuss any training needs. By Sunday a total of 437 photos had been taken at the booth.

Farm World proved to be a fantastic branding exercise for the institute.

David Parkin

Dr. Sally Cockburn Jason Mcartney, MC Craig Willis, Emma Welsh & Tom O’Toole

Elizabeth Chong signing books


GippsTAFE operates in accordance with the Freedom of Information Act 1982 and its amendments for Freedom of Information (FoI) Access Arrangements.

During the period January to December 2013 there were no applications for information under the Act.

Records of the Institute, as listed below, are maintained in line with the Public Records Office of Victoria requirements:• Corporate records are maintained on an electronic records

management system (ERMA) by the Corporate Records office.

• Financial and purchasing records of the Institute are maintained by the Institute’s Finance Department.

• Personnel records are maintained by the Institute’s Human Resources Department.

• Educational performance and quality related records are maintained by the Educational Performance Unit of the Institute, to conform to the National VET Regulator (NVR) requirements of the Australian Skills Quality Authority.

Other records of the Institute are maintained by the respective functional areas within the Directorates of the Institute.

Freedom of Information Access ArrangementsFreedom of Information enquiries may be directed to:

Jenni HardyExecutive Director Academic Support ServicesCentral Gippsland Institute of TAFEMail: GippsTAFE, PO Box 3279, Gippsland Mail Centre, Victoria, 3841Telephone: (03) 51 204539Email: [email protected]

Charges for Freedom of Information access are governed by the Act, its amendments and regulations and are outlined as follows:

UPDATE FEESApplication Fee: $25.10 (Payable up front and non-refundable unless fee is waived)

Access Charges:Searches - $20 per hour or part thereof

Supervision Charges: $5 per quarter hour or part thereof

Photocopying Charges:20 cents per black and white A4 page

Access in a form other than photocopying:At cost

These charges are set by the Freedom of Information (Access Charges) Regulations 2004 and are subject to annual review.

Freedom Of Information (Foi)


($ thousands)

Consultant (A-Z)Purpose of Consultancy

Start date End date

Total approved project fee (excluding

GST)

Expenditure 2013

(excluding GST)

Future expenditure (excluding

GST)

B & H Seskis Family Trust Training Consultant 7/01/2013 24/12/2013 320 162 158

Back 2 Basics Training Consultant 5/02/2013 23/12/2013 35 35 0

Casa Electrical Services Training Consultant 4/02/2013 24/12/2013 47 47 0

Central Gippsland Health Nurse Training / Placement 35 17 18

Central Power Pty Ltd Training Consultant 28/02/2013 23/12/2013 146 58 88

Complete Electrical Connection Pty Ltd Training Consultant 24/05/2013 23/12/2013 216 73 143

Curriculum and Assessment Training Consultant 12/03/2013 29/11/2013 31 31 0

Domenico Follacchio Training Consultant 4/02/2013 27/12/2013 26 26 0

Doug Mullen Training Consultant 2/01/2013 20/12/2013 86 53 33

Enersafe Pty Ltd Training Consultant 22 22 0

Ernst & Young Consultancy 384 384 0

Freelance Global Training Consultant 14/01/2013 23/12/2013 277 139 138

Gary Michael O’Donoghue Training Consultant 21/01/2013 24/12/2013 117 69 48

Gippsland Education Precinct Consultancy 53 26 27

Jamie Fieldes Training Consultant 4/03/2013 23/12/2013 428 109 319

Kelard Pty Ltd Training Consultant 14/02/2013 23/12/2013 14 14 0

Latrobe Regional Hospital Nurse Training / Placement 44 22 22

Learnworks Pty Ltd Online Facilitation 1/01/2013 3/02/2013 30 16 14

Lucas Electrical Training Consultant 10/01/2013 24/12/2013 176 108 68

No1 Consulting Services Training Consultant 34 17 17

Power Projects and Training Services Training Consultant 15 15 0

Powerline Training Pty Ltd Training Consultant 10/10/2011 31/12/2013 22 22 0

Squiz Australia Pty Ltd Provide Training Units 34 34 0

The Klevar Group Training Consultant 1/03/2013 30/09/2013 16 16 0

The Moreland Group Training Consultant 57 28 29

Topmarks Training and Assessment Training Consultant 7/01/2013 24/12/2013 241 138 103

T-Zed Consulting Project Consultant 11/02/2013 11/02/2014 13 13 0

Warren G Sinclair Training Consultant 10/01/2013 24/12/2013 115 75 40

Watson Consulting Training Consultant 28/02/2013 23/12/2013 107 62 45

West Gippsland Health Nurse Training / Placement 61 30 31

Zebara Pty Ltd Training Consultant 22/07/2013 30/12/2013 89 26 63

Total Number of Consultants Listed 31 31 31

Total Expenditure 3,289 1,885 1,404

In 2013 Central Gippsland Institute of TAFE engaged 66 consultants at a total cost $1,998,172.58 (excluding GST)

Details of individual consultancies


2013 2012 2011 2010 2009

$000 $000 $000 $000 $000

Revenues from continuing operations 32,324 47,817 52,725 52,782 40,408

Expenses from continuing operations 37,041 41,878 41,922 40,003 35,866

Result from continuing operations (4,717) 5,939 10,803 12,779 4,542

Result for the Year (4,717) 5,939 10,803 12,779 4,542

Decrease on adoption of Accounting Standard

Net increase/(decrease) in asset revaluation reserve 6,696 6,696 (869) (519) 0

Assets transferred to DECA

Total revenues, expenses and valuation adjustments recognised directly in equity 6,438 12,635 9,525 12,260 4,542

Total Changes in Equity 6,438 12,635 9,525 12,260 4,542

Total current assets 11,991 8,632 8,697 12,454 11,084

Total non-current assets 94,736 88,265 75,687 61,450 50,600

Total Assets 106,727 96,897 84,384 73,904 61,684

Total current liabilities 9,386 7,829 8,583 7,646 7,651

Total non-current liabilities 7,538 986 355 339 373

Total Liabilities 16,924 8,815 8,938 7,985 8,024

Net Assets/Equity 89,802 88,081 75,446 65,919 53,660

This information is consistent with the financial statementsThe 2013 full Financial Report is contained in part two of this report

Summary of financial results for 2013


NOTE A1 - STATEMENT OF FINANCIAL PERFORMANCE-Total Operating Expenses Note 2013 2012

Delivery provision and support activity A2 22,491 26,399

Admin. and general services activity A3 6,018 6,646

Property plant and equip. services activity A4 7,859 8,068

Student and other services activity A5 673 764

Total Operating Expenses 37,041 41,878

NOTE A2 - STATEMENT OF FINANCIAL PERFORMANCE

Delivery Provision and Support Activity

Salaries, wages, overtime & allowances 15,894 18,591

Superannuation 1,208 1,514

Payroll tax 792 1,002

Other salary related costs 1,077 1,537

Consumables 1,792 1,971

Travel and motor vehicle expenses 598 637

Depreciation 18 18

Other direct delivery expenses 1,112 1,130

22,491 26,399


Administration and General Services Activity

Salaries, wages, overtime & allowances 2,738 3,203

Superannuation 235 295

Payroll tax 155 196

Other salary related costs 234 334

Consumables 334 367

Communication expenses 892 752

Fees 203 246


Other expenses 1,082 1,100

6,018 6,646


Property, Plant and Equipment Services Activity

Salaries, wages, overtime & allowances 361 423


Payroll tax 20 26


Consumables 58 64

Depreciation 3,133 3,058

Equipment 91 170

Energy costs 665 696

Contract services 883 961

Rent/leasing charges 1,519 1,499

Repairs and maintenance 765 782

Other expenses 301 305

7,859 8,068


Student and Other Services Activity

Salaries, wages, overtime & allowances 409 479


Payroll tax 16 21


Consumables 6 6


673 764

Activity Statement


The Institute has policies and procedures in place for Competitive Neutrality which helps to ensure compliance with government legislation, with the spirit of the National Competition Policy and the Victorian Government’s Competitive Neutrality Principles.

These policies apply to all commercial activity and the pricing of tenders for government funded training of a competitive nature. GippsTAFE has developed and maintained a pricing and costing model to ensure that prices charged for business activity reflect all costs applicable and that all advantages and disadvantages of government ownership are included in pricing calculations. This pricing and costing model is subject to continuous monitoring and internal audit review to ensure compliance.

Information Privacy

There were no complaints received in regard to the Institute’s management of personal information during 2013.

The Institute’s Privacy Officer, can be contacted by phone: 03 5120 4539, by email: [email protected] or by mail: PO Box 3279, Gippsland Mail Centre, VIC 3841. This email address is printed on all GippsTAFE enrolment forms.

Copies of the Institute’s Privacy Statement can be accessed on the GippsTAFE website: www.GippsTAFE.edu.au or by contacting the Institute directly.

Compliance With National Competition Policy


Consistent with the requirements of the Financial Management Act 1994, GippsTAFE has prepared material on the following items, details of which are available on request:• Statement regarding declarations of pecuniary interest.

• Shares held beneficially by senior officers as nominees of a statutory authority or subsidiary.

• Publications and where they are located.

• Changes in prices, fees, charges, rates and levies.

• Major external reviews.

• Major research and development activities.

• Overseas visits undertaken.

• Major promotional, public relations and marketing activities.

• Assessments and measures undertaken to improve the occupational health and safety of employees.

• Industrial relations issues.

• Major committees sponsored by the Institute.

• Financial Information

• Environmental Performance.

Enquiries regarding the information listed above should be addressed to:Mr Ian CarrollBoard Secretary

By contacting:Patricia ReardonBoard Executive Assistant

Central Gippsland Institute of TAFEMorwell CampusCnr Princes Hwy and Monash WayMorwell VIC 3840 Telephone: (03) 5120 4507Website: www.GippsTAFE.edu.au*

*The location of the annual report can be identified through the Institute home page.

Attestation on compliance with the Australian/New Zealand Risk Management Standard

I, Dr Peter Whitley, certify that GippsTAFE has risk management processes in place consistent with the Australian/New Zealand Risk Management Standard AS4360 and an appropriate internal control system is in place. This enables our executives to understand and speak knowledgeably about their operations, their key risks and controls for satisfactory management of risk exposures pertaining to the context, size, complexity, sophistication and maturity of the Institute. The Audit Committee verifies this assurance and affirms the risk profile of GippsTAFE has been critically reviewed within the last 12 months.

Dr Peter J WhitleyChief ExecutiveGippsTAFE

Information Available

Compliance


Part TwoFinancial Report


Central Gippsland Institute of TAFEAnnual financial report – 31 December 2013

Financial Report PageAuditor’s Report 62Certifications 64Comprehensive Operating Statement 65Balance sheet 66Statement of changes in equity 67Cash flow statement 68Notes to the financial statements 70Glossary 118Disclosure index 120

The financial statements were authorised for issue by the Board on the 18/03/2014. The Board of Central Gippsland Institute of TAFE has the power to amend and reissue the financial statements.


Auditor General’s Report


DECLARATION BY CHAIRMAN OF THE BOARD

CHIEF EXECUTIVE OFFICER

AND CHIEF FINANCE AND ACCOUNTING OFFICER

We certify that the attached financial statements for Central Gippsland Institute of TAFE here has been prepared in accordance with Standing Direction 4.2 of the Financial Managment Act 1994, applicable Financial Reporting Directions issued under that legislation, Australian Accounting Standards and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and notes to and forming part of the financial report, presents fairly the financial transactions during the year ended 31 December 2013 and financial position of the Institute as at 31 December 2013.

At the date of signing this financial report, we are not aware of any circumstance that would render any particulars included in the financial report to be misleading or inaccurate. There are reasonable grounds to believe that the Institute will be able to pay its debts as and when they became due and payable.

The Chairman of the Board and the Chief Executive Officer sign this declaration as delegates of, and in accordance with a resolution of, the Board of the Central Gippsland Institute of TAFE.

Central Gippsland Institute of TAFE

Mr John MitchellChairman of the Board

Date 18/03/2014Place: Morwell

Dr Peter WhitleyChief Executive Officer


Mr Ian CarrollChief Finance & Accounting

Officer


Declaration by Chairman of the Board, Chief Executive Officer and Chief Finance and Accounting Officer – Financial Report


Note Institute

2013 2012

$’000 $’000

Continuing operations

Income from transactions

Government contributions - operating 2(a)(i) 15,626 26,213

Government contributions - capital 2(a)(ii) 2,703 8,001

Sale of goods and services 2(b) 12,819 12,459

Interest 2(c) 268 171

Other income 2(d) 115 88

Total income from transactions 31,531 46,932

Expenses from transactions

Employee benefits 3(a) 23,620 27,630

Depreciation and amortisation 3(b) 3,152 3,076

Supplies and services 3(c) 6,518 6,661

Other operating expenses 3(d) 3,308 3,512

Total expenses from transactions 36,597 40,879

Net result from transactions (net operating balance) (5,066) 6,053

Other economic flows included in net result

Net gain/(loss) on non-financial assets 4(a) - -

Share of net profits/(losses) of associates and joint venture entities, excluding divi-dends

9-1(c) - -

Other gains/(losses) from other economic flows 4(b) 348 (114)

Total other economic flows included in net result 348 (114)

Net result from continuing operations (4,718) 5,939

Net result (4,718) 5,939

Other economic flows – other non-owner changes in equity

Changes in physical asset re valuation surplus reserve 16 - 6,696

Total other economic flows – Other non-owner changes in equity - 6,696

Comprehensive result (4,718) 12,635

The above comprehensive operating statement should be read in conjunction with the accompanying notes.

Comprehensive Operating Statement - Central Gippsland Institute of TAFEfor the year ended 31 December 2013


Note

Institute

2013 2012

$’000 $’000

Financial assets

Cash and cash equivalents 5 3,484 6,744

Receivables 6 916 1,288

Investments, loans and other financial assets 7 7,000 -

Investments accounted for using the equity method 9-1 - -

Total financial assets 11,400 8,032

Non-financial assets

Inventories 8 265 259

Property, plant and equipment 11 88,326 88,248

Intangible assets 12 6,397 -

Other assets 10 340 356

Total non-financial assets 95,328 88,863

Total assets 106,729 96,895

Liabilities

Payables 13 6,929 5,308

Provisions 14 2,996 3,509

Borrowings 15 7,000

Total liabilities 16,925 8,817

Net assets 89,802 88,080

Equity

Accumulated surplus/(deficit) 16(c) 38,919 43,636

Reserves 16(b) 38,171 38,171

Contributed capital 16(a) 12,712 6,274

Net worth 89,802 88,080

Commitments for expenditure 18 17,819 17,270

Contingent assets and contingent liabilities 20 - -

The above balance sheet should be read in conjunction with the accompanying notes.

Balance Sheet - Central Gippsland Institute of TAFEfor the year ended 31 December 2013


Changes due to

Equity at 1 Jan 2013

Total Comprehensive

result

Transactions with owners in

their capacity as owners

Equity at 31 Dec 2013

Note $’000 $’000 $’000 $’000

Accumulated surplus/(deficit) 43,636 (4,718) - 38,918

Accumulated surplus/(deficit) at the end of the year 43,636 (4,718) - 38,918

Contributions by owners 16 6,274 - 6,438 12,712

Contribution by owners at the end of the year 6,274 - 6,438 12,712

Physical assets revaluation reserve 16 38,171 - - 38,171

Physical assets revaluation reserve at the end of the year 38,171 - - 38,171

Total equity at the end of the year 88,081 (4,718) 6,438 89,802

Changes due to

Equity at 1 Jan 2012

Total Comprehensive

result

Transactions with owners in

their capacity as owners

Equity at 31 Dec 2012

Note $’000 $’000 $’000 $’000

Accumulated surplus/(deficit) 37,697 5,939 - 43,636

Accumulated surplus/(deficit) at the end of the year 37,697 5,939 - 43,636

Contributions by owners 6,274 - - 6,274

Contribution by owners at the end of the year 6,274 - - 6,274

Physical assets revaluation reserve 16 31,475 6,696 - 38,171

Physical assets revaluation reserve at the end of the year 31,475 6,696 - 38,171

Total equity at the end of the year 75,446 12,635 - 88,081

The above statement of changes in equity should be read in conjunction with the accompanying notes.

Statement of Changes in Equity - Central Gippsland Institute of TAFEfor the year ended 31 December 2013


Note

Institute

2013 2012

$’000 $’000

Cash flows from operating activities

Receipts

Government contributions - operating 16,430 28,071

Government contributions - capital 2,703 8,072

User fees and charges received 12,005 10,195

Goods and services tax recovered from the ATO 149 229

Interest received 268 171

Other receipts 3,144 6,433

Total receipts 34,699 53,171

Payments

Payments to suppliers and employees (34,461) (39,942)

Interest and other costs of finance paid (186) -

Total payments (34,647) (39,942)

Net cash provided by operating activities 17 (a) 52 13,229

Cash flows from investing activities

Payments for investments (7,000)

Proceeds from sale of investments - -

Payments for non-financial assets 11 (3,311) (8,957)

Proceeds from sale of non-financial assets - -

Net cash used in investing activities (10,311) (8,957)

Cash flows from financing activities

Proceeds from borrowings 7,000 -

Net cash flows from/(used in) financing activities 7,000 -

Net increase in cash and cash equivalents (3,259) 4,272

Cash and cash equivalents at the beginning of the financial year 6,744 2,472

Cash and cash equivalents at the end of the financial year 5 3,484 6,744

Financing arrangements - -

Non-cash financing and investing activities - -

The above cash flow statement should be read in conjunction with the accompanying notes.

Cash Flow Statement - Central Gippsland Institute of TAFEfor the year ended 31 December 2013

Notes to the Financial Statements - Central Gippsland Institute of TAFEfor the year ended 31 December 2013


Contents Note Accompanying Note Page 1 Statement of significant accounting policies 70 2 Income from transactions 80 3 Expenses from transactions 81 4 Other economic flows included in net result 82 5 Cash and cash equivalents 83 6 Receivables 84 7 Investments, loans and other financial assets 85 8 Inventories 86 9 Investments accounted for using the equity method (Part I) 87 10 Other assets 88 11 Property, plant and equipment 90 12 Intangible assets 91 13 Payables 92 14 Provisions 93 15 Borrowings 94 16 Equity 95 17 Cash flow information 96 18 Commitments 97 19 Leased assets 98 20 Contingencies 99 21 Economic dependency 100 22 Events occurring after the balance sheet date 101 23 Remuneration of auditors 102 24 Superannuation 103 25 Key management personnel disclosures (Part I) 104 26 Institute details 107 27 Financial instruments (Part I) 108 27 Financial instruments (Part II) 110 27 Financial instruments (Part III) 111 27 Financial instruments (Part IV) 112 27 Financial instruments (Part V) 113



1.01 Statement of compliance

These general purpose financial statements have been prepared in accordance with the Financial Management Act 1994 (FMA) and applicable Australian Accounting Standards (AAS) which include Interpretations, issued by the Australian Accounting Standards Board (AASB). In particular, they are presented in a manner consistent with the requirements of the AASB 1049 Whole of Government and General Government Sector Financial Reporting.

Where appropriate, those AAS paragraphs applicable to not-for-profit entities have been applied.

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

1.02 Basis of preparation

The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

These financial statements are presented in Australian dollars, the functional and presentation currency of the Institute.

In the application of AAS, judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

The estimates and associated assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements made by management in the application of AASs that have significant effects on the financial statements and estimates, with a risk of material adjustments in the next year, are disclosed throughout the notes to the financial statements.

These financial statements have been prepared in accordance with the historical cost convention. Historical cost is based on the fair values of the consideration given in exchange for assets

Exceptions to the historical cost convention include:• non-financial physical assets which, subsequent to acquisition, are measured at a revalued amount being their fair value at the date of

therevaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrrying amounts do not materially differ from their fair value;

• available-for-sale investments which are measured at fair value with movements reflected in equity until the asset is derecognised.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 31 December 2013 and the comparative information presented for the year ended 31 December 2012.

The following is a summary of the material accounting policies adopted by the Institute in the preparation of the financial report. The accounting policies have been consistently applied unless otherwise stated.

1.03 Reporting entity

The financial statements cover the Central Gippsland Institute of TAFE as an individual reporting entity. The Institute is a Body Corporate, established pursuant to an act/order made by the Governor in Council under the Education and Training Reform Act 2006.Its principal address is:Central Gippsland Institute of TAFECorner of Princes Drive and Monash WayMorwell, Victoria, 3840

1.04 Basis of consolidation

The financial statements include all the activities of the Institute. The Institute has no controlled entities.

1.05 Events after reporting date

Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between the Institute and other parties, the transactions are only recognised when the agreement is irrevocable at or before balance date. Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting date and before the date the statements are authorised for issue, where those events provide information about conditions which existed at the reporting date. Note disclosure is made about events between the reporting date and the date the statements are authorised for issue where the events relate to condition which arose after the reporting date and which may have a material impact on the results of subsequent years.

1.06 Goods and Services Tax (GST)

Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.

Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

Commitments and contingent assets or liabilities are presented on a gross basis.

NOTE 1



1.07 Income from transactions

Amounts disclosed as income are, where applicable, net of returns, allowances and duties and taxes. Revenue is recognised for each of the Institute’s major activities as follows:

Government contributions

Government contributions are recognised as revenue in the period when the Institute gains control of the contributions. Control is recognised upon receipt or notification by relevant authorities of the right to receive a contribution for the current period.

Sale of goods and services

(i) Student fees and charges Student fees and charges revenue is recognised by reference to the percentage of services provided. Where student fees and charges revenue has been clearly received in respect of courses or programs to be delivered in the following year, any non-refundable portion of the fees is treated as revenue in the year of receipt and the balance as Revenue in Advance.

(ii) Fee for ServiceFee for service revenue is recognised by reference to the percentage completion of each contract, i.e. in the reporting period in which the services are rendered. Where fee for service revenue of a reciprocal nature has been clearly received in respect of programs or services to be delivered in the following year, such amounts are disclosed as Revenue in Advance.

(iii) Revenue from sale of goodsRevenue from sale of goods is recognised by the Institute when: (a)the significant risks and rewards of ownership of the goods have transferred to the buyer;(b) the Institute retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; (c) the amount of revenue can be reliably measured;(d) it is probable that the economic benefits associated with the transaction will flow to the Institute and;(e) the costs incurred or to be incurred in respect of the transaction can be measured reliably.

InterestInterest from cash, short-term deposits and investments is brought to account on a time proportional basis taking into account interest rates applicable to the financial assets.(ii) Rental income

Rental income is recognised on a time proportional basis and is brought to account when the Institute’s right to receive the rental is established.

1.08 Expenses from transactions

Employee benefitsExpenses for employee benefits are recognised when incurred, except for contributions in respect of defined benefit plans.Retirement benefit obligations(i) Defined contribution plan

Contributions to defined contribution plans are expensed when they become payable. (ii) Defined benefit plans

The amount charged to the comprehensive operating statement in respect of superannuation represents the contributions made by the Institute to the superannuation plan in respect of current services of current Institute staff. Superannuation contributions are made to the plans based on the relevant rules of each plan.The Institute does not recognise any deferred liability in respect of the plan(s) because the Institute has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as and when they fall due. The Department of Treasury and Finance recognises and discloses the State’s defined benefit liabilities in its finance report.

Depreciation and amortisation

DepreciationDepreciation is provided on property, plant and equipment, including freehold buildings but excluding land. Depreciation is generally calculated on a straight-line basis so as to write off the net cost or other revalued amount of each asset over its expected useful life to its estimated residual value. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period.

Depreciation methods and rates used for each class of depreciable assets are as follows and remain unchanged from the prior year.

Class of asset Method Rate/Rates

Building Straight 1% to 5%

Leased Building Straight Period of Lease

Leasehold Improvements Straight Period of Lease

Plant & equipment Straight 4% to 40%

Infrastructure Straight 5.0%

Computers Straight 10% to 40%

Motor vehicles Straight 15% to 33%

Intangible Straight 5% to 10%

Library collections Diminishing 25.0%



The land and building assets were formally revalued in 2012 and the assets have been adjusted accordingly.

AmortisationIntangible assets with finite lives are amortised on a straight line basis over the assets useful lives. Amortisation begins when the asset is available for use, that is, when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each annual reporting period. In addition, an assessment is made at each reporting date to determine whether there are indicators that the intangible asset concerned is impaired. If so, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount.Intangible assets with indefinite lives are not amortised. The useful life of intangible assets that are not being amortised are reviewed each period to determine whether events and circumstances continue to support an indefinite useful life assessment for that asset. In addition, the Institute tests all intangible assets with indefinite lives for impairment by comparing its recoverable amount with its carrying amount:(a) annually;(b) whenever there is an indication that the intangible asset may be impaired.Any excess of the carrying amount over the recoverable amount is recognised as an impairment loss.

Interest expenseInterest expenses are recognised as expenses in the period in which they are incurred.Interest expenses include interest on bank overdrafts and short term and long term borrowings, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings and finance lease charges.

Grants and other transfersGrants and other transfers to third parties are recognised as an expense in the reporting period in which they are paid or payable.

Other operating expensesSupplies and servicesSupplies and services expenses are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any inventories held-for-distribution are expensed when distributed.

Fair value of assets and services provided free of charge or for nominal considerationResources provided free of charge or for nominal consideration are recognised at their fair value.

1.09 Other economic flows included in net resultOther economic flows measure the change in volume or value of assets or liabilities that do not result from transactions.

Net gain/(loss) on non-financial assetsNet gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses from revaluations, impairments, and disposals of all physical assets and intangible assets.

Disposal of non-financial assetsAny gain or loss on disposal of non-financial assets is recognised at the date control of the asset is passed to the buyer and is determined after deducting from the proceeds the carrying value of the asset at the time.

Impairment of assetsGoodwill and intangible assets with indefinite useful lives (and intangible assets not yet available for use) are tested annually for impairment (i.e. as to whether their carrying value exceeds their recoverable amount and so require write downs). All other assets are assessed annually for indications of impairment, except for: –Inventories;– Financial assets;If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by a charge to the comprehensive operating statement, except to the extent that the write down can be debited to an asset revaluation reserve amount applicable to that class of asset.

It is deemed that, in the event of the loss or destruction of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made.

The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash flows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell. It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made.

Impairment of financial assetsBad and doubtful debts are assessed on a regular basis. Those bad debts considered as written off by mutual consent are classified as a transaction expense. The allowance for doubtful receivables and bad debts not written off by mutual consent are adjusted as ‘other economic flows’.

Other gains/(losses) from other economic flowsOther gains/(losses) from other economic flows include the gains or losses from reclassifications of amounts from reserves and/or accumulated surplus to net result, and from the revaluation of the present value of the long service leave liability due to changes in the bond interest rates.



1.10 Financial assets

Cash and depositsCash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and highly liquid investments with an original maturity of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

For the cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as interest bearing liabilities on the balance sheet.

ReceivablesReceivables consist of:• statutory receivables, which include predominantly amounts owing from the Victorian Government and GST input tax credits recoverable; and• contractual receivables, which include mainly debtors in relation to goods and services, loans to third parties, accrued investment income,

and finance lease receivables

Receivables that are contractual are classified as financial instruments. Statutory receivables are not classified as financial instruments.Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest method, less an allowance for impairment.

A provision for doubtful receivables is made when there is objective evidence that the debts may not be collected and bad debts are written off when identified.

Investments and other financial assetsInvestments are classified in the following categories: • financial assets at fair value through profit or loss,• loans and receivables, and• available for sale financial assets. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition.

Any dividend or interest earned on the financial asset is recognised in the consolidated comprehensive operating statement as a transaction.

Derecognition of financial assets A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when: • the rights to receive cash flows from the asset have expired; or• the Department retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material

delay to a third party under a ‘pass through’ arrangement; or• the Department has transferred its rights to receive cash flows from the asset and either:

(a) has transferred substantially all the risks and rewards of the asset, or(b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Where the Department has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of the Department’s continuing involvement in the asset.

At the end of each reporting period, the Institute assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual review for impairment.

Bad and doubtful debts for financial assets are assessed on a regular basis. Those bad debts considered as written off by mutual consent are classified as a transaction expense. Bad debts not written off by mutual consent and the allowance for doubtful receivables are classified as ‘other economic flows’ in the net result.

The amount of the allowance is the difference between the financial asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate.

In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets.



1.11 Leases

A lease is a right to use an asset for an agreed period of time in exchange for payment.Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance infrastructure leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership from the lessor to the lessee. All other leases are classified as operating leases

Operating leasesInstitute as lessor Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease.All incentives for the agreement of a new or renewed operating lease are recognised as an integral part of the net consideration agreed for the use of the leased asset, irrespective of the incentive’s nature or form or the timing of payments.

Institute as lesseeOperating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the balance sheet.

All incentives for the agreement of a new or renewed operating lease are recognised as an integral part of the net consideration agreed for the use of the leased asset, irrespective of the incentive’s nature or form or the timing of payments.

1.12 Non-Financial Assets

InventoriesInventories include goods and other property held either for sale or for distribution at no or nominal cost in the ordinary course of business operations. It includes land held-for-sale and excludes depreciable assets.

Inventories held-for-distribution are measured at cost, adjusted for any loss of service potential. All other inventories, including land held for sale, are measured at the lower of cost and net realisable value.

The basis used in assessing loss of service potential for inventories held-for-distribution include current replacement cost and technical or functional obsolescence. Technical obsolescence occurs when an item still functions for some or all of the tasks it was originally acquired to do, but no longer matches existing technologies. Functional obsolescence occurs when an item no longer functions the way it did when it was first acquired.

Cost is assigned to land for sale (undeveloped, under development and developed) and to other high value, low volume inventory items on a specific identification of cost basis.• Cost for all other inventory is measured on the basis of weighted average cost.• Inventories acquired for no cost or nominal consideration are measured at current replacement cost at the date of acquisition.

Property, plant and equipmentAll non-financial physical assets, are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment.

The initial cost for non-financial physical assets under a finance lease is measured at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease.

Where an asset is received for no or nominal consideration, the cost is the asset’s fair value at the date of acquisition.

Non-financial physical assets such as national parks, other Crown land and heritage assets are measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the asset are not taken into account until it is virtually certain that the restrictions will no longer apply.

The fair value of cultural assets and collections, heritage assets and other non-financial physical assets that the State intends to preserve because of their unique historical, cultural or environmental attributes, is measured at the replacement cost of the asset less, where applicable, accumulated depreciation (calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset) and any accumulated impairment. These policies and any legislative limitations and restrictions imposed on their use and/or disposal may impact their fair value.

The fair value of infrastructure systems and plant, equipment and vehicles, is normally determined by reference to the asset’s depreciated replacement cost. For plant, equipment and vehicles, existing depreciated historical cost is generally a reasonable proxy for depreciated replacement cost because of the short lives of the assets concerned.

The cost of constructed non-financial physical assets includes the cost of all materials used in construction, direct labour on the project, and an appropriate proportion of variable and fixed overheads.

Where an asset is received for no or nominal consideration, the cost is the asset’s fair value at the date of acquisition.

For the accounting policy on impairment of non-financial physical assets refer to Note on Impairment of non-financial assets.

Library collectionsLibrary collections are measured at cost less accumulated depreciation.



Leasehold improvementsThe cost of a leasehold improvements is capitalised as an asset and depreciated over the remaining term of the lease or the estimated useful life of the improvements, whichever is the shorter.

Revaluations of non-current physical assetsNon-current physical assets measured at fair value are revalued in accordance with FRDs issued by the Minister for Finance. This revaluation process normally occurs every five years, based upon the asset’s Government Purpose Classification, but may occur more frequently if fair value assessments indicate material changes in values. Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value.

Revaluation increases are credited directly to equity in the revaluation reserve, except to the extent that an increase reverses a revaluation decrease in respect of that class of property, plant and equipment, previously recognised as an expense (other economic flows) in the net result, the increase is recognised as income (other economic flows) in determining the net result.

Revaluation decreases are recognised immediately as expenses (other economic flows) in the net result, except to the extent that a credit balance exists in the revaluation reserve in respect of the same class of property, plant and equipment, they are debited to the revaluation reserve.

Revaluation increases and revaluation decreases relating to individual assets within a class of property, plant and equipment are offset against one another within that class but are not offset in respect of assets in different classes.

Revaluation reserves are not normally transferred to accumulated funds on de-recognition of the relevant asset.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

IntangiblesIntangible assets represent identifiable non-monetary assets without physical substance.

Intangible assets are recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to the Institute.

Intangible assets are measured at cost less accumulated amortisation and impairment, and are amortised on a straight-line basis over their useful lives as follows:

1.13 Liabilities

PayablesPayables consist of: • contractual payables, such as accounts payable, and unearned income including deferred income from concession arrangements. Accounts

payable represent liabilities for goods and services provided to the Department prior to the end of the financial year that are unpaid, and arise when the Institute becomes obliged to make future payments in respect of the purchase of those goods and services; and

• statutory payables, such as goods and services tax and fringe benefits tax payables.• Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost. Statutory payables are

recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from a contract.

Interest bearing liabilitiesInterest bearing liabilities are initially measured at fair value, being the cost of the interest bearing liabilities, net of transaction costs.

Subsequent to initial recognition, borrowings are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in the comprehensive operating statement income over the period of the borrowing using the effective interest rate method.

Financial liabilitiesNon-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost using the effective interest rate method.

Derecognition of financial liabilitiesA financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.

Financial guaranteesFinancial guarantee contracts are recognised as a liability at the time the guarantee is issued. The liability is initially measured at fair value, and if there is a material increase in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognised less cumulative amortisation, where appropriate.

The fair value of financial guarantee contracts has been assessed using the probability weighted discounted cash flow approach. The probability has been based on:

– the likelihood of the guaranteed party defaulting in a year’s period;– the proportion of the exposure that is not expected to be recovered due to the guaranteed party defaulting; and– the maximum loss exposed if the guaranteed party were to default.

2013 2012

Capitalised software development cost (years) 5-15 3-5



ProvisionsProvisions are recognised when the Institute has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cashflows estimated to settle the present obligation, its carrying amount is the present value of those cashflows.

Employee benefitsThe calculation of employee benefits includes all relevant on-costs and are calculated as follows at reporting date.

(i) Wages and salaries and annual leaveLiabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of employee services up to the reporting date, classified as current liabilities and measured at their nominal values.

Liabilities that are not expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits as current liabilities, measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

(ii) Long service leaveLiability for long service leave (LSL) is recognised in the provision for employee benefits.

Current Liability - unconditional LSL representing 7 years is disclosed as a current liability even when the Institute does not expect to settle the liability within 12 months because it will not have the unconditional right to defer settlement of the entitlement should an employee take leave within 12 months.

The components of this current liability are measured at :– present value - component that is not expected to be settled within 12 months. – nominal value - component that is expected to be settled within 12 months.

Non-current liability - conditional LSL representing less than 7 years is disclosed as a non - current liability. There is an unconditional right to defer settlement of the entitlement until the employee has completed the requisite years of service.

This non-current LSL liability is measured at present value. Gain or loss following revaluation of the present value of non-current LSL liability due to changes in bond interest rates is recognised as an other economic flow (refer to Note 4(b)).

(iii) Termination benefitsTermination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Institute recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to present value.

Employee benefits on-costsEmployee benefits on-costs ( payroll tax, workers compensation, superannuation, annual leave and long service leave accrued while on LSL taken in service) are recognised separately from provision for employee benefits.

Performance PaymentsPerformance payments for Central Gippsland Institute of TAFE Executive Officers are based on a percentage of the annual salary package provided under the contract of employment. A liability is provided for under the term of the contracts at reporting date and paid out in the next financial year.

Onerous contractsAn onerous contract is considered to exist where the Institute has a contract under which the unavoidable cost of meeting the contractual obligations exceed the economic benefits estimated to be received. Present obligations arising under onerous contracts are recognised as a provision to the extent that the present obligation exceeds the economic benefits estimated to be received.

1.14 CommitmentsCommitments include those operating, capital and other outsourcing commitments arising from non-cancellable contractual or statutory sources and are disclosed at their nominal value and inclusive of the GST payable.

1.15 Contingent assets and liabilitiesContingent assets and liabilities are not recognised in the balance sheet, but are disclosed by way of a note (refer note 20) and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of the GST receivable or payable respectively.

1.16 EquityContributed capitalFunding that are in the nature of contributions by the State government are treated as contributed capital when designated in accordance with UIG Interpretation 1038 Contribution by Owners Made to Wholly-Owned Public Sector Entities. Commonwealth capital funds are not affected and are treated as income.

1.17 Foreign currency translationsFunctional and presentation currencyThe functional currency of each group entity is measured using the currency of the primary economic environment in which that entity operates. The Institute’s financial statements are presented in Australian dollars which is the parent entity’s functional and presentation currency.



Transactions and balancesForeign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined.

Exchange differences arising on the translation of monetary items are recognised in the comprehensive operating statement in the period in which they arise, except where deferred in equity as a qualifying cash flow or net investment hedge.

Exchange difference arising on the translation of non-monetary items are recognised directly in equity to the extent that the gain or loss is directly recognised in equity, otherwise the exchange difference is recognised in the comprehensive operating statement.

1.18 Materiality

In accordance with Accounting Standard AASB1031 ‘Materiality’, accounting policies need only be identified in the summary of accounting policies where they are considered ‘material’. Accounting policies will be considered material if their omission, misstatement or non-disclosure has the potential, individually or collectively, to:

(a ) influence the economic decisions of users taken on the basis of the financial report; and

(b) affect the discharge of accountability by the management or governing body of the entity.

1.19 Rounding of amounts

Amounts in the financial report have been rounded to the nearest thousand dollars, unless otherwise stated. Some figures in the financial statements may differ slightly due to rounding.

1.20 Comparative information

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. Where necessary, the previous year’s figures have been reclassified to facilitate previous year’s comparison.

1.21 Change in accounting policy

Certain new accounting standards and interpretations have been published that are not mandatory for the 31 December 2013 reporting period. The Institute has applied the following standards:

1.22 AASB 13 Fair Value Measurement

The Institute has applied AASB 13 Fair Value Measurement for the first time in the current year. AASB 13 establishes a single source of guidance for fair value measurements. The scope of AASB 13 is broad; the fair value measurement requirements of AASB 13 apply to both financial instrument items and non-financial instrument items for which other A-IFRS require or permit fair value measurements and disclosures about fair value measurements, except for share-based payment transactions that are within the scope of AASB 2 Share-based Payment, leasing transactions that are within the scope of AASB 17 Leases, and measurements that have some similarities to fair value but not fair value (e.g. net realisable value for the purposes of measuring inventories or value in use for impairment assessment purposes). AASB 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions. Fair value under AASB 13 is an exit price regardless of whether that price is directly observable or estimated using another valuation technique. Also, AASB 13 includes extensive disclosure requirements. AASB 13 requires prospective application from 1 January 2013. In addition, specific transitional provisions were given to entities such that they need not apply the disclosure requirements set out in the Standard in comparative information provided for periods before the initial application of the Standard. In accordance with these transitional provisions, the Institute has not made any new disclosures required by AASB 13 for the 2012 comparative period (please see note 9 and 27 disclosures). Other than the additional disclosures, the application of AASB 13 has not had any material impact on the amounts recognised in the financial statements.

1.23 AASB 119 Employee benefits

“In the current year, the Institute has applied AASB 119 Employee Benefits (as revised in 2011) and the related consequential amendments for the first time. AASB 119 (as revised in 2011) changes the accounting for defined benefit plans and termination benefits. The most significant change relates to the accounting for changes in defined benefit obligations and plan assets. This change has no impact on the Institute because it has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance recognises and discloses the State’s defined benefit liabilities in its financial statements.

In addition, AASB 119 also changes the definition of short-term employee benefits. This change has no impact on the Institute because the Institute has always defined short-term employee benefits as benefits expected to be settled wholly before twelve months after the end of the reporting period in which the employees render the related service; and measured the provision for annual leave on a discounted basis.”

As at 31 December 2013 the following standards and interpretations (applicable to the Institute) had been issued but were not mandatory for financial year ending 31 December 2013. The Institute has not, and does not intend to, adopt these standards early.



Standard/Interpretation

Summary Application date of standard

Impact on entity financial statements

AASB 9 Financial Instruments

This standard simplifies requirements for the classification and measurement of financial assets resulting from Phase 1 of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement (AASB 139 Financial Instruments: Recognition and Measurement).

1 Jan 2015 Subject to AASB’s further modifications to AASB 9, together with the anticipated changes resulting from the staged projects on impairments and hedge accounting, details of impacts will be assessed.

AASB 11 Joint Arrangements

This Standard deals with the concept of joint control, and sets out a new principles-based approach fordetermining the type of joint arrangement that exists and the corresponding accounting treatment. The new categories of joint arrangements under AASB 11 are more aligned to the actual rights and obligations of the parties to the arrangement.

1 Jan 2014 Not-for-profit entities are not permitted to apply this Standard prior to the mandatory application date.

Subject to AASB’s final deliberations and any modifications made to AASB 11 for not-for-profit entities, the entity will need to assess the nature of arrangements with other entities in determining whether a joint arrangement exists in light of AASB 11.

AASB 12 Disclosure of Interests in Other Entities

This Standard requires disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on the financial statements. This Standard replaces the disclosure requirements in AASB 127 Separate Financial Statements and AASB 131 Interests in Joint Ventures. The exposure draft ED 238 proposes to add some implementation guidance to AASB 12, explaining and illustrating the definition of a ‘strucutured entity’ from a not-for-profit perspective.

1 Jan 2014 Not-for-profit entities are not permitted to apply this Standard prior to the mandatory application date.

Impacts on the level and nature of the disclosures will be assessed based on the eventual implications arising from AASB 10, AASB 11 and AASB 128 Investments in Associates and Joint Ventures.

AASB 127 Separate Financial Statements

This revised Standard prescribes the accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements.

1 Jan 2014 Not-for-profit entities are not permitted to apply this Standard prior to the mandatory application date. The AASB is assessing the applicability of principles in AASB 127 in a not-for-profit context. As such, the impact will be assessed after the AASB’s deliberation.

AASB 128 Investments in Associates and Joint Ventures

This revised Standard sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.

1 Jan 2014 Not-for-profit entities are not permitted to apply this Standard prior to the mandatory application date. The AASB is assessing the applicability of principles in AASB 128 in a not-for-profit context. As such, the impact will be assessed after the AASB’s deliberation.



Assets / Liabilities measured at fair value

Fair Value as at Fair Value Hierarchy Valuation Technique(s) and key assumptions

Significant unobservable input(s)

Relationship of unobservable inputs to fair value

31/12/2013 31/12/2012

1 Assets- $AUDLiabilities - $AUD

Assets- $AUDLiabilities - $AUD

Level 1 Quoted bid prices (unadjusted) in an active market for identical assets or liabilities that the entity can access at the measurement date.

NA NA

2Assets- $AUDLiabilities - $AUD

Assets- $AUDLiabilities - $AUD Level 2

Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.

NA NA

Depreciated replacement cost as applied to non-specialised assets.

3 Assets- $AUDLiabilities - $AUD

Assets- $AUDLiabilities - $AUD

Level 3 Depreciated replacement cost.

Specialised assets, estimates made on replacement cost of asset

The higher the construction cost, the higher the fair value.

1.24 Critical accounting judgements and key sources of estimation uncertainty “In the application of the Institute’s accounting policies, judgements, estimates and assumption about the carrying amounts of assets and liabil-ities must be made. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Key sources of estimation uncertainty The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.”

Fair value measurements and valuation processes“Some of the Institute’s assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or a liability the Institute uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Institute engages third party qualified valuers to perform the valuation.

Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities is summarised below and at notes 11 and 27. In addition, the following table provides an analysis of assets and liabilities that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.

• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). “

The Institute did not have any financial instruments that are measured subsequent to initial recognition at fair value in 2013.



Institute

2013 2012

$000 $000

(a) Grants and other transfers (other than contributions by owners)

Government financial assistance

(i) Government contributions – operating

Commonwealth government recurrent specific funded programs 933 1,393

State government recurrent specific funded programs 13,338 21,392

Other contributions 1,355 3,428

Total government contributions – operating 15,626 26,213

(ii) Government contributions – capital

Commonwealth capital - 3,305

IT TELCs 2,136 -

State capital 567 4,696

Total government contributions – capital 2,703 8,001

Total government financial assistance 18,329 34,214

(b) Sales of goods and services

Student fees and charges 261 358

Rendering of services

Fee for service – Government 2,382 2,349

Fee for service – International operations 746 669

Fee for service – other 8,526 8,238

Total rendering of services 11,914 11,614

Other non-course fees and charges

Sale of goods, Expense Recovery and Donations, Bequests and Other Contributions 905 845

Total other fees and charges 905 845

Total revenue from sale of goods and services 12,819 12,459

(c) Interest

Interest from financial assets not at fair value through P/L:

Interest on bank deposits 268 171

Total interest revenue from financial assets not at fair value through P/L 268 171

Net interest income 268 171

(d) Other income

Rental revenue:

Rental Hire of facilities 115 88

Total rental revenue 115 88

Total other income 115 88

NOTE 2 - Income and transactions



(a) Employee benefits

Salaries, wages, overtime and allowances 19,752 23,581

Superannuation 1,536 1,877

Payroll tax 983 1,244

Worker’s compensation 218 142

Long service leave 378 (146)

Annual leave (166) (235)

Termination benefits 726 1,055

Other 193 112

Total employee benefits 23,620 27,630

(b) Depreciation and amortisation

Depreciation of non-current assets

Buildings 1,451 1,412

Plant and equipment 1,375 1,204

Computer equipment 23 45

Motor vehicles 62 129

Library collections 18 18

Infrastructure 36 36

Total depreciation 2,965 2,844

Amortisation of intangible assets

Leasehold improvements - amortisation 146 150

Software 41 82

Total amortisation 187 232

Total depreciation and amortisation 3,152 3,076

(c) Supplies and Services

Purchase of supplies and consumables 1,686 1,985

Communication expenses 886 844

Contract and other services 1,065 1,059

Cost of goods sold/distributed (ancillary trading) 295 300

Building repairs and maintenance 291 358

Minor equipment 91 180

Fees and charges 2,203 1,935

Total supplies and services 6,518 6,661

(d) Other Expenses

General Expenses

Marketing and promotional expenses 583 548

Occupancy expenses 909 891

Audit fees and services 102 94

Staff development 75 138



Software Upgrades 385 484

Total other expenses 3,308 3,512

Subtotal 3,308 3,512

Total other operating expenses 3,308 3,512

Institute

2013 2012

$000 $000

NOTE 3 - Expenses from transactions



(a) Net gain/(loss) on non-financial assets (including PPE and intangible assets)

Net gain/(loss) on disposal of physical assets – –

Total net gain/(loss) on non-financial assets and liabilities – –

(b) Other gains/(losses) from other economic flows

Net gain/(loss) arising from revaluation of long service leave liability 348 (114)

Total other gains/(losses) from other economic flows 348 (114)

Institute

2013 2012

$000 $000

NOTE 4 - Other economic flows included in net results



Institute

2013 2012

$000 $000

NOTE 5 - Cash and cash equivalents

Cash at bank and on hand 3,475 6,254

Deposits at call – 481

Petty Cash Advances are Non Interest Bearing 9 9

Total cash and cash equivalents 3,484 6,744

The above figures are reconciled to cash at the end of the financial year as shown in the cash flows statement as follows:

(a) Reconciliation to cash at the end of the year

Balances as above 3,484 6,744

Less Bank overdraft _ _

Balance as per cashflow statement 3,484 6,744

(b) Cash at bank and on hand

Cash at bank is earning floating rates between 2% and 3% (2012 – 2% and 4%)

(c) Deposits at call

The deposits are bearing floating interest rates between 2% and 3% (2012 – 3% and 5%).

These deposits have an average maturity of 30 days.



Current receivables

Contractual

Trade receivables1 622 620

Provision for doubtful contractual receivables(a) (See also Note 6(a) below) (1) (1)

Revenue receivable 73 45

Total contractual 694 664

Statutory

Amounts owing from Victorian Government 74 497

GST receivable from ATO 148 127

Total statutory 222 624

Total current receivables 916 1,288

Total receivables 916 1,288

1 The average credit period on sale of goods is 30 days. No interest is charged on outstanding amounts for other receivables. A provision has been made for estimated irrecoverable amounts from the sale of goods, determined by reference to past default experience.

(a) Movement in the provision for doubtful contractual receivables

Balance at beginning of the year (1) (1)

Reversal of unused provision recognised in the net result – –

Balance at end of the year (1) (1)

(b) Ageing analysis of contractual receivables

Please refer to Note 27 for the ageing analysis of contractual receivables.

(c) Nature and extent of risk arising from contractual receivables

Please refer to Note 27 for the nature and extent of credit risk arising from contractual receivables.

NOTE 6 - ReceivablesInstitute

2013 2012

$000 $000



Institute

2013 2012

$000 $000

Fixed Interest /Term Deposits¹ 7,000 –

Total current investments, loans and other financial assets 7,000 –

Total investments, loans and other financial assets 7,000 –1 The fixed Interest /Term Deposits are bearing interest floating rates between 2% and 4% (2012 - 3% and 5%)

NOTE 7 - Investments, loans and other financial assets



Current

Inventories

Supplies and consumables - at cost 117 114

Inventories held-for-sale:

at cost 148 145

Total current inventories 265 259

Institute

2013 2012

$000 $000

NOTE 8 - Inventories



Investments in joint entities – –

Total investments accounted for using the equity method – –

(a) Reconciliation

Balance at 1 January – –

Share of profit for the year – –

Return of equity – –

Balance at 31 December – –

(b) Financial Position

Total assets – –

Total liabilities – –

Net assets – –

Share of associates’ net assets – –

(c) Financial Position

Total Revenue – –

Profit/(loss) – –

Share of associates’ profit/(loss) – –

Institute

2013 2012

$000 $000

NOTE 9 - Investments using equity method



NOTE 10 - Other assetsInstitute

2013 2012

$’000 $’000

Current other assets

Prepayments 333 341

Total current other assets 333 341

Non-current assets

Prepayments 7 15

Total non-current assets 7 15

Total other assets 340 356



NOTE 11 - Property, plant and equipment

Institute

Land Buildings Construction in progress

Plant & Equipment

Motor Vehicles

Leasehold Improve-

ments

Library Leased Buildings

Lease Right Infrastruc-ture

Computer Equip

Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

At 1 January 2012

Cost - - 12,624 - - - - - - - - 12,624

Valuation / Fair value 9,372 57,986 - 12,776 773 5,898 792 56 888 718 3,752 93,011

Accumulated depreciation - (19,058) - (4,725) (510) (944) (741) (56) (101) (223) (3,684) (30,042)

Net book amount 9,372 38,928 12,624 8,051 263 4,954 51 - 787 495 68 75,593

Year ended 31 December 2012

Opening net book amount 9,372 38,928 12,624 8,051 263 4,954 51 - 787 495 68 75,594

Additions - - 8,897 - 48 - 12 - - - - 8,957

Disposals - - - (7) - - - - - - - (7)

(Impairment Losses) / Reval-

uation through revaluation

reserve

6,074 484 - - - 140 - - - - - 6,698

Transfer to assets classified as

held-for-sale

- 16,339 (20,189) 3,850 - - - - - - - -

Impairment loss through profit

and loss

- - - - - - - - - - - -

Depreciation expense - (1,412) - (1,204) (129) (121) (18) - (29) (36) (45) (2,994)

Closing net book amount 15,446 54,339 1,332 10,690 182 4,973 45 - 758 459 23 88,248

At 31 December 2012

Cost - - 1,332 3,843 48 - 12 - - - - 5,235

Valuation 15,446 54,511 - 12,776 773 5,102 792 56 888 718 3,752 94,814

Accumulated depreciation - (172) - (5,929) (639) (129) (759) (56) (130) (258) (3,729) (11,801)

Net book amount 15,446 54,339 1,332 10,690 182 4,973 45 - 758 460 23 88,248

At 31 December 2013

Opening net book amount 15,446 54,339 1,332 10,690 182 4,973 45 - 758 460 23 88,248

Additions - 140 2,020 965 186 - - - - - 3,311

Disposals - - - (19) (103) - - - - - - (122)

(Impairment Losses) / Reval-

uation through revaluation

reserve

- - - - - - - - - -

Transfer of completed projects - (2,850) 2,850 - - - - - - - -

Impairment loss through profit

and loss

- - - - - - - - - - -

Depreciation expense - (1,451) (1,375) (62) (118) (18) - (28) (36) (23) (3,111)

Closing net book amount 15,446 53,028 502 13,111 203 4,855 27 - 730 424 - 88,326

At 31 December 2013

Cost - 502 - 12 - - - - 514

Valuation / Fair value 15,446 54,651 20,371 823 5,101 792 56 888 718 3,750 102,596

Accumulated depreciation - (1,622) - (7,260) (620) (246) (777) (56) (158) (294) (3,750) (14,783)

Net book amount 15,446 53,029 502 13,111 203 4,855 27 - 730 424 - 88,326

(a) Valuations of land and buildings“The Institutes land and buildings were last formally revalued in the financial statements at 31 December 2012 by the Valuer General Office representative Preston Rowe Patterson Valuer General Reference: 201B-A00981The Institute undertakes on an annual basis, a review of movements in indices to determine a fair value assessment and indication of material changes “

(b) Non current assets pledged as securityThere are no non current physical assets pledged as security



NOTE 11 - Property, plant and equipment (Continued)

Level1 Level2 Level3 Fair Value as at 31/12/2013

2013 AUD '000 AUD '000 AUD '000 AUD '000

Freehold land - 15,446 - 15,446

Crown Land - - - -

buildings used solely for educational purposes - 53,029 - 53,029

buildings used for communal purposes - - - -

Details of Institute’s land and buildings and information about the recurring fair value measurement hierarchy as at 31 December 2013 are as follows:



NOTE 12 - Intangible assets

Institute Software Licences Total

$’000 $’000 $’000

At 1 January 2012

Cost 434 - 434

Accumulated amortisation and impairment (352) - (209)

Net book amount 82 225


Opening net book amount 82 - 225

Additions - - -

Amortisation charge (82) - (225)

Closing net book amount - -

At 31 December 2012

Cost 434 - 434

Accumulated amortisation and impairment (434) - (434)

Net book amount - -


Opening net book amount - 6,438 6,438

Amortisation charge - (41) (41)

Closing net book amount - 6,397 6,397

At 31 December 2013

Cost 434 6,438 6,872

Accumulated amortisation and impairment (434) (41) (475)

Net book value at the end of the financial year - 6,397 6,397



NOTE 13 - Payables

Institute

2013 2012

$’000 $’000

Current

Contractual

Supplies and services 2,967 2,331

Amounts payable to government and agencies 3,105 1,400

Other employee entitlements payable within 12 months 103 339

6,175 4,070

Statutory

Taxes Payable 454 605

Total current payables 6,629 4,675

Non-current

Contractual

Supplies and services

Amounts payable to government and agencies 300 633

Other employee entitlements payable within 12 months

Other 300 633

Total non-current payables 300 633

Total payables 6,929 5,308

The carrying amounts of the Group’s and parent entity’s payables are denominated in the following currencies:

(a) Foreign currency risk

Institute

2013 2012

$’000 $’000

Australian Dollars 6,929 5,308

6,929 5,308

Notes1 The average credit period is 30 days. No interest is charged on the other payables for the first 30 days from the date of the invoice.

2 For an analysis of the sensitivity of payables to foreign currency risk refer to note 27.

Maturity analysis of contractual payablesRefer to Note 27 for maturity analysis of contractural payables.



NOTE 14 - Provisions

Institute

2013 2012

$’000 $’000

Current provisions expected to be settled within 12 months

Employee benefits

Annual leave 1,076 1,242

Long service leave 164 185

Performance Payments 68 91

Total current provisions expected to be settled within 12 months 1,308 1,518

Current provisions expected to be settled after 12 months

Employee benefits

Annual leave 120 138

Long service leave 1,281 1,497

Total current provisions expected to be settled after 12 months 1,401 1,635

Total current provisions 2,709 3,153

Non-current

Employee benefits:

Long service leave 286 355

Total non-current provisions 286 355

Total provisions 2,996 3,509

Movements in Provisions

Institute

2013 2012

$’000 $’000

Carrying amount at start of year 3,509 4,652

Additional provisions recognised 1,031 1,423

Net gain/(loss) arising from revaluation of long service leave liability 348 (114)

Amounts used (1,892) (2,452)

Carrying amount at end of year 2,996 3,509



NOTE 15 - Borrowings

Institute

2013 2012

$’000 $’000

Unsecured

Current

Bank overdraft - -

Bills payable - -

Other loans - -

Total current unsecured borrowings - -

Non-current

Bills payable - -

Other loans 7,000 -

Total non-current secured borrowings 7,000 -

Total unsecured borrowings 7,000 -

Total borrowings 7,000 -

(i) On balance sheetThe fair value of current borrowings equals their carrying amount, as the impact of discounting is not significant. The fair values of non-current bor-rowings are based on cash flows discounted using borrowing rates varying from 0% to 4%.The term of the loan is four and half years no assets are incumbent by this loan.



NOTE 16 - Equity

Institute

2013 2012

$’000 $’000

(a) Contributed Capital

Balance at 1 January 6,274 6,274

Transfer non-financial asset (Capital Contribution) 6,438 -

Balance at 31 December 12,712 6,274

(b) Reserves

Composition of Reserves

Asset revaluation reserve

Land 10,869 10,869

Buildings 27,302 27,302


(c) Accumulated surplus / (deficit)


Net operating result for the year (4,717) 5,939


Total equity 77,090 81,807

Movements in Reserves

Institute

2013 2012

$’000 $’000

Asset Revaluation Reserve - Land


Revaluation of Land - 6,074


Asset Revaluation Reserve - Buildings


(Impairment losses) / Revaluation - 622


Physical Asset Revaluation Reserve


Balance at beginning of financial year 38,171 31,475

(Impairment losses) / Revaluation - 6,696


Asset Revaluation Reserve - Buildings1. FRD103D states that Victorian Public Service (VPS) are required to complete a formal valuation completed by an accredited Valuer on a five year cycle. 2012 is the five year cycle for the Institute and the valuation figures are reflected above.

The Institutes land and buildings were last formally revalued in the financial statements at 31 December 2012 by the Valuer General Office representative Preston Rowe Patterson Valuer General Reference: 201B-A00981The Institute undertakes on an annual basis, a review of movements in indices to determine a fair value assessment and indication of material changes.



NOTE 17 - Cash flow information

Institute

2013 2012

$’000 $’000

(a)Reconciliation of operating result after income tax to net cash flows from operating activities

Net result for the year (4,717) 5,939

Non-cash flows in operating result

Depreciation and amortisation of non-current assets 3,151 3,076

Net (gain) / loss on sale of non-current assets 33 1

Allowance to recoverable amounts 1 1

Total non-cash flows in operating result 3,185 3,078

Movements included in investing and financing activities

Decrease / (increase) in trade receivables 6 3,935

Decrease / (increase) in inventories (6) 29

Decrease / (increase) in other assets 3 (11)

Decrease / (increase) in other debtors 388 383

Increase / (decrease) in payables 1,708 1,020

Increase / (decrease) in employee benefits (515) (1,144)

Increase / (decrease) in non-current liabilities - -

Total change in operating assets and liabilities 1,584 4,212

Net cash flows provided by/(used in) operating activities 52 13,229



NOTE 18 - Commitments

Institute

2013 2012

$'000 $'000

(a) Capital commitments

Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows:

Property, Plant and Equipment Payable:

Within one year 1,238 1,000

Later than one year but not later than five years - -

Later than five years - -

Total Property, Plant and Equipment 1,238 1,000

GST reclaimable on the above 124 100

Net Commitments Property, Plant and Equipment 1,362 1,100

Total capital expenditure commitments 1,362 1,100

The above commitments include capital expenditure commitments of $1,238 relating to the Chadstone Yard Development and Technical Enabled Learned Centres (TELCs) project

Commitments

Institute

2013 2012

$'000 $'000

(b) Lease commitments

Commitments in relation to leases contracted for at the reporting date but not recognised as liabilities, payable:

Within one year 1,458 1,458

Later than one year but not later than five years 2,913 2,751

Later than five years 10,325 10,048

Total lease commitments 14,696 14,257

Net commitments Operating leases 14,696 14,257

(i) Operating LeasesCentral Gippsland Institute TAFE leases it fleet from Alphabet Fleet leasing and Macquarie leasing. Central Gippsland Institute TAFE also has a fifty year lease arrangement with Victrack at the Warragul Campus with 45 years remaining.

Commitments

Institute

2013 2012

$'000 $'000

(c) Remuneration commitments

Commitments for the payment of salaries and other remuneration under long-term employment contracts in existence at the reporting date but not recognised as liabilities.

Within one year 768 665

Later than one year but not later than five years 1,117 1,348

Later than five years - -

Total remuneration commitments 1,885 2,013



NOTE 19 - Leased assets

Institute

2013 2012

$’000 $’000

As at the reporting date the Institute leased out the following assets:

Building at the Yallourn Campus 14 14

Gross amount of leased assets 14 14

The Institute leases out a building which is excess to current requirements, at current market rates.



There are no Contingent Liabilities or Contingent Assets at 31 December 2013. (2012 $Nil).

NOTE 20 - Contingencies



Consolidated

2013 2012

$’000 $’000

Higher Education & Skills Group (HESG) 18,463 25,926

Department of Education Employment and Workplace Relation - 2,629

18,463 28,555

1 Higher Education & Skills Group (HESG)Central Gippsland Institute of TAFE provide vocational education tranining and receives funding from this body as well as receiving capital recovery costs for the development of the Technical Enabled Learning Centres (TELCs) project.

1 Department of Education Employment and Workplace RelationCentral Gippsland Institute of TAFE provides vocational education training and receives funds from this body.

Figures sourced off the Govt reconciliation report.

NOTE 21 - Economic dependency



Institute

2013 2012

$’000 $’000

Events occurring after reporting date are as follows: - -

Total events occurring after reporting date - -

NOTE 22 - Events occurring after the balance sheet date



NOTE 23 - Remuneration of auditors

Institute

2013 2012

$’000 $’000

Remuneration of Victorian Auditor General’s Office for:

Audit of the financial report 28 25

Total remuneration of Victoria Auditor General’s Office 28 25

Remuneration of other auditors

Remuneration of Internal auditors and other 75 78

Total remuneration of other auditors of subsidiaries 75 78

Total Remuneration of auditors 103 103



Institute

2013 2012

$’000 $’000

State Superannuation Fund of Victoria

SERB Scheme 12.5% - -

Revised Scheme 15.5% - 17.6% 24 127

New Scheme 7.4% - 10.3% 76 135

Total State Superannuation Fund of Victoria 100 262

Victorian Superannuation Fund

Victoria Superannuation Scheme 9.25% 1,200 1,237

Total Victorian Superannuation Fund 1,200 1,237

Other Superannuation Schemes

Other Superannuation Schemes 676 378

Total Other Superannuation Schemes 676 378

Total Contribution to all funds 1,976 1,877

NOTE 24 - Superannuation

Employees of Central Gippsland Institute of TAFE are entitled to receive superannuation benefits and the Institute contributes to both defined benefits and defined contribution plans. The defined benefits plan(s) provides benefits based on years of service and the final average salary. The Institute does not recognise any defined benefits liability in respect to plan(s) because the entity has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance recognises and discloses the State’s defined benefit liabilities in its financial statements. However, superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the Comprehensive operating statement.

In accordance with the accounting policy the Institute does not recognise any defined benefits liabilities. As at the reporting date there were no loans to the Institute from any fund.



NOTE 25 - Key management personnel disclosures (Part I)

Responsible persons related disclosuresIn accordance with the directions of the Minister for Finance under the Financial Management Act 1994, the following disclosures are made for the responsible Ministers and responsible Members of Council.

(i) MinisterThe relevant Minister is The Hon Peter Hall MP, Minister for Higher Education and Skills. Remuneration of the Ministers is disclosed in the financial report of the Department of Premier and Cabinet. Other relevant interests are declared in the Register of Members interests which is completed by each member of the Parliament.

(ii) Names of responsible persons and executive officersThe following persons were Members of the Institute Board:

Mr J. Mitchell (President) (from 16/04/2013), Mr D. Gittins, Ms J. Stringer, Dr P. Whitley (CEO) (to 14/04/2013), Ms L. Giddy (to 14/04/2013), Ms M. de Zwart (to 14/04/2013), Ms L. Hambly (to 14/04/2013), Mr N. Gerreyn (to 14/04/2013), Mr O. Pearson, Mrs J. Hocking, Ms L. Cruickshank (to 14/04/2013), Mr M. Dunsmuir (from 01/06/2013, Ms B. Wilson (from 01/06/2013), Mr P. Vines (from 01/06/2013, Dr C. Glowrey (from 01/06/2013).

New constitution gazetted on the 15/04/2013 removed the CEO as a board member.

(iii) Other key management personnelThe following persons also had the authority and responsibility for planning, directing and controlling the activities of the Institute during the financial year.

Dr P. Whitley Mr I. Carroll Mr J. Vivian Ms C. Elliot Ms J. Hardy



NOTE 25 - Key management personnel disclosures (Part I) (Continued)

Responsible persons$’000 $’000

Remuneration of responsible persons

Remuneration received, or due and receivable from the Institute in connection with the management of the Institute. Includes termination payments and bonuses paid at end of contracts.

143 247

- -

No. No.

Income range

The number of Responsible Persons whose remuneration from the Institute was within the specified bands are as follows:

Nil 1 -

Less than $10,000 8 13

$10,000-$19,999 4 -

$20,000-$39,999 1 -

$40,000-$59,999 - -

$60,000-$79,999 - -

$80,000-$99,999 1 -

$100,000-119,999 - -

$220,000-$229,999 - 1

Total number of Responsible Persons 15 14

New constitution gazetted on the 15/04/2013 removed the CEO as a board member. Listed as responsible person to the 15/04/2013.



Executive officersInstitute

2013 2012

$’000 $’000

Executive Officers’ RemunerationThe number of executive officers, other than Responsible Persons, included under “Remuneration of Responsible Persons” above whose total remuneration exceeded $100,000 during the financial year are shown in their relevant income bands. The base remuneration is exclusive of bonus payments, long service leave payments, redundancy pay-ments and retirement benefits.

Base remuneration of executive officers 791 451

Total remuneration of executive officers 912 503

No. No.

Income range

The number of executive officers whose remuneration from the Institute was within the specified bands are as follows:

$50,000-$69,999 - -

$70,000-$89,999 - -

$100,000-$109,999 - -

$120,000-$129,999 1 -

$130,000-$139,999 - -

$140,000-$149,999 1 2

$150,000-$159,999 1 1

$160,000-$179,999 1 -

$190,000-$199,999 1 -

Total executive officers 5 3

Key management personnelInstitute

2013 2012

No. No.

Key management personnel compensation

Short-term employee benefits 552 414

Total key management personnel compensation 552 414

(iii) Related partiesMr D Gittins is the Managing Director of the Valley Ford Group, which provides motor vehicle and servicing on normal commercial terms and condi-tions with a value of $27K in 2013 (2012: $18K).Dr P Whitley is the Chairman of the Gippsland Education Precinct (GEP), which provides services on normal commercial terms and conditions with a value of $65K in 2012 (2012: $130K).There were no other transactions between the Institute or a related party with Responsible persons of the Institute or related party of those Re-sponsible persons during the reporting period

NOTE 25 - Key management personnel disclosures (Part I) (Continued)



NOTE 26 - Institute Details

The registered office of the Institute is:Central Gippsland Institute of TAFECorner of Princes Drive and Monash Way , Morwell, Victoria, 3840

The principle place of business is:Central Gippsland Institute of TAFECorner of Princes Drive and Monash Way , Morwell, Victoria, 3840



NOTE 27 - Financial Instruments (Part I)

Financial risk management

(i) Financial risk management objectivesThe Institute’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Institute’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Institute. The Institute uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and ageing analysis for credit risk.

Risk management is carried out by the Finance function of the Institute under policies approved by the Board. The function identifies and evaluates financial risks in close co-operation with the Institute’s operating units. The Board provides written principles for overall risk management, as well as policies covering specific areas, such as interest rate risk, credit risk, use of non-derivative financial instruments, and investment of excess liquidity.

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset and financial liability is disclosed in note 1 of the financial statements.

(ii) Financial risk exposures and managementThe Institute’s financial instruments consist mainly of deposits with banks, local money market instruments, short term investments, accounts receivables and payables and leases.

The main risks the Institute is exposed to through its financial instruments are market risk, foreign currency risk,funding risk, interest rate risk, credit risk and liquidity risk.

(iii) Receivables

Carrying amount of financial instruments by category: Institute

2013 2012

Financial Assets Note Category $’000 $’000

Cash and Deposits 5 Cash 3,484 6,735

Revenue Receivables (a) 6 Loans and receivables 694 664

4,178 7,399

Financial liabilities

Payables (a) 13 Financial liabilities 3,070 4,703

3,070 4,703

Note: (a) Receivables and payables disclosed here exclude statutory receivables and statutory payables.



Market riskThe Institute in its daily operations is exposed to a number of market risks. Market risks relate to the risk that market rates and prices will change and that this will have an adverse affect on the operating result and /or net worth of the Institute. e.g. an adverse movement in interest rates or foreign currency exchange rates.

The Board ensures that all market risk exposure is consistent with the Institute’s business strategy and within the risk tolerance of the Institute. Regular risk reports are presented to the Board.

There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing market risk or the methods used to measure this risk from the previous reporting period.

Foreign currency riskThe Institute is exposed to insignificant fluctuations in foreign currencies arising from the delivery of services in currencies other than AUD$.

There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing foreign currency risk or the methods used to measure this risk from the previous reporting period.

Interest rate riskInterest rate risk arises from the potential for a change in interest rates to change the expected net interest earnings in the current reporting period and in future years. Similarly, interest rate risk also arises from the potential for a change in interest rates to cause a fluctuation in the fair value of the financial instruments.

The objective is to manage the rate risk to achieve stable and sustainable net interest earnings in the long term. This is managed predominately through a mixture of short term and longer term investments.

Interest rate movements have not been sufficiently significant during the year to have an impact on the Institute’s year end result.

The Institute’s exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities, at balance date are set out in the financial instrument composition and maturity analysis table.

Funding riskFunding risk is the risk of over reliance on a funding source to the extent that a change in that funding source could impact on the operating result for the current year and future years.

The Institute manages funding risk by continuing to diversify and increase funding from Commercial activities, both domestically and off shore.

There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing funding risk or the

methods used to measure this risk from the previous reporting period.

Concentrations of credit riskThe maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance sheet and notes to the financial statements.

There are no material amounts of collateral held as security at 31 December 2013.

Credit risk is managed and reviewed regularly by the finance committee. It arises from exposures to customers.

The finance committee monitors credit risk by actively assessing the rating quality and liquidity of counter parties:• all potential customers are rated for credit worthiness taking into

account their size, market position and financial standing; and• customers that do not meet the Institute’s strict credit policies may

only purchase in cash or using recognised credit cards.

Details of the finance committee are provided below:

Members of the Finance Committee are: Mark Dunsmuir (Chair), Joanne Stringer and John Mitchell

The Institute does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into by the Institute.

The trade receivables balance at 31 December 2013 and 31 December 2012 do not include any counter parties with external credit ratings. Customers are assessed for credit worthiness using the criteria detailed above.

There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing funding risk or the methods used to measure this risk from the previous reporting period.

Liquidity riskUltimate responsibility for liquidity risk management rests with the institute’s governing body, which has built an appropriate liquidity risk management framework for the management of the short, medium and long-term funding and liquidity requirements. The institute manages liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

There has been no significant change in the Institute’s exposure, or its objectives, policies and processes for managing liquidity risk or the methods used to measure this risk from the previous reporting period.



NOTE 27 - Financial Instruments (Part II)

Terms, conditions and accounting policies

The Institute’s accounting policies, including the terms and conditions of each class of financial asset, financial liability and equity instrument, both recognised and unrecognised at reporting date, are as follows:

Recognised financial instruments Note Accounting policies Terms and conditions

Financial assets

Cash and cash equivalents - cash at bank and on hand 5 Cash at bank is carried at the nominal amount. Cash is invested as funds permit at effective interest rate between 2.00% and 3.00% (2012 be-tween 2.00% and 4.00%)

Cash and cash equivalents - deposits at call 5 Deposits at call are carried at their nominal amounts. Interest revenue is recognised in the comprehensive operating statement when it is earned.

Deposits at call have an average maturity of 30 days and effective interest rate between 2.00% and 3.00% (2012 between 3.00% and 5.00%)

Trade Receivables 6 Trade debtors are carried at amortised cost less any allowance for doubtful debts. An allowance for doubtful debts is maintained to recognise that collection of the full nominal amount is no longer probable.

Credit sales are on 30 day terms

Receivables Receivables 6 Other debtors are carried at amortised cost less any allowance for doubtful debts. An allowance for doubtful debts is maintained to recognise that collection of the full nominal amount is no longer probable.

Credit sales are on 30 day terms


Payables creditors and accruals 13 Liabilities are recognised for amounts to be paid in the future for goods and services re-ceived, whether or not invoiced to the Institute.

Trade liabilities are settled as required.



Carrying amount Interest rate risk

-1% 1%

Result Equity Result Equity

$’000 $’000 $’000 $’000 $’000

Financial assets

Cash at Bank (as variable rates) 3,475 (34.8) (34.8) 34.8 34.8

Total increase/ (decrease) 3,475 (35) (35) 35 35

Carrying amount Interest rate risk

-1% 1%

Result Equity Result Equity

$’000 $’000 $’000 $’000 $’000

Financial assets

Cash at Bank (as variable rates) 6,735 (67.4) (67.4) 67.4 67.4

Total increase/ (decrease) 6,735 (67) (67) 67 67

NOTE 27 - Financial Instruments (Part III)

Summarised sensitivity analysis

The following table summarises the sensitivity of the Institute’s financial assets and financial liabilities to interest rate risk. The Institute’s foreign exchange risk and other price risk is insignificant and has not been disclosed.



Consolidated2013

Weighted average effective rate

Floating interest

rate

Within 1 year

1-5 years More than 5 years

Non- Interest Bearing

Total Carrying Amount per

Balance Sheet

% $`000 $`000 $`000 $`000 $`000 $`000

Financial assets

Cash and cash equivalents

Cash at bank and on hand 2.00 3,475 - - - - 3,475

Deposits at call 3.00 - - - - - -

Contractual receivables -

Receivables Debtor - - - - - 622 622

Total financial assets 3,475 - - - 622 4,097


Trade and other payables - - - - - 3,070 3,070

Total financial liabilities - - - - - 3,070 3,070

NOTE 27 - Financial instruments (Part IV)

Financial instrument composition and maturity analysis

The tables below reflect the undiscounted contractual settlement terms for financial instruments of a fixed period of maturity, as well as management’s expectations of the settlement period for all other financial instruments. As such, the amounts may not reconcile to the balance sheet.

Consolidated2012

Weighted average effective rate

Floating interest

rate

Within 1 year

1-5 years More than 5 years

Non- Interest Bearing

Total Carrying Amount per

Balance Sheet

% $`000 $`000 $`000 $`000 $`000 $`000

Financial assets

Cash and cash equivalents

Cash at bank and on hand 3.00 6,254 - - - - 6,254

Deposits at call 4.00 - 481 - - - 481

Contractual receivables -

Receivables Debtor - - - - - 664 664

Total financial assets 6,254 481 - - 664 7,399


Trade and other payables - - - - - 4,703 4,703

Total financial liabilities - - - - - 4,703 4,703


NOTE 27 - Financial instruments (V)

Fair value estimation

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.

The fair value of financial instruments that are not traded in an active market (for example, over the counter derivatives) is determined using valuation techniques. The Institute uses a variety of methods and makes assumptions that are based on market conditions existing at each balance date.

The carrying value less impairment provision of trade receivables and payables is a reasonable approximation of their fair values due to the short-term nature of trade receivables. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Institute for similar financial instruments.

Due to the short-term nature of the current receivables, their carrying value is assumed to approximate their fair value and based on credit history it is expected that the receivables that are neither past due nor impaired will be received when due.

For other assets and other liabilities the fair value approximates their carrying value. Financial assets where the carrying amount exceeds fair values have not been written down as the Institute intends to hold these assets to maturity.

All carrying amounts of financial assets and liabilities at balance date are materially in line with their fair value.

Financial instruments that are measured to initial recognition at fair value are grouped into Levels 1 to 3 based on the degree to which the fair value is observable.

Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The Institute did not have any financial instruments that are measured subsequent to initial recognition at fair value in 2013.

Ageing analysis of financial assets

There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The following table discloses the ageing only of financial assets that are past due but not impaired:

Carrying amount

Not past due and not

impaired

Past due but not impaired Impaired financial

assetsLess than 1 month

1-3 months

3 months – 1 year

1-5 years

Contractual receivables

Revenue receivables 664 - 664 - - -

Total 664 - 664 - - -

Contractual receivables

Revenue receivables 615 - 335 274 6 -

Total investments, loans & other 615 - 335 274 6 -


Statement of Performance Audit Report


PERFORMANCE STATEMENT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2013

DECLARATION BY CHAIRMAN OF THE BOARD,

CHIEF EXECUTIVE OFFICER

AND CHIEF FINANCE AND ACCOUNTING OFFICER

In our opinion, the accompanying Performance Statement of Central Gippsland Institute of TAFE in respect of the 2013 Financial Year is presented in accordance with the Financial Management Act 1994.

The Statement outlines the performance indicators as determined by the responsible Minister, pre-determined targets and the actual results for the year against these indicators, and an explanation of any significant variance between the actual results and performance targets.

As at the date of signing, we are not aware of any circumstance which would render any particulars in this Statement to be misleading or inaccurate.

The President of the Board and the Chief Executive Officer sign this declaration as delegates of, and in accordance with a resolution of, the Board of Central Gippsland Institute of TAFE.

Central Gippsland Institute of TAFE

Mr John MitchellChairman of the Board


Dr Peter WhitleyChief Executive Officer


Mr Ian CarrollChief Finance & Accounting

Officer


Declaration by Chairman of the Board, Chief Executive Officer and Chief Finance and Accounting Officer – Performance Statement


KEY PERFORMANCE INDICATORS Target 2013 Actual 2013 Commentary

Student Contact Hours (Government Subsidised)(AS per Skills Victoria Agreement including Skills Statement Schs)

1,580,890(L,LQ,P,Q funds)

1,509,566(L,LQ,P,Q funds)

The Institute has not met its target for subsidised student contact hours by 71,324, partly due to increased contestability and less clement economic conditions.

Module Load Completion RateScheduled Hrs assessed and passed or satisfactorily completed/Total scheduled hours reported less hours recorded with Credit Transfer and continuing studies outcome.

81.5% 84.33%Module load completion rate increased from a target of 81.5%.

Participation of 15-19 Years Olds - Number of students within the age group

N/A3,648

students

15-19 year olds participation has increased in 2013 compared with 3,498 students in 2012. This is due to an alignment with demographic which indicates that the cohort is increasing as a percentage of our Institute’s catchment population.


N/A5,766

students

15-24 year olds captures the 20-24 cohort who have taken gap years after year 12 and are returning for qualifications to gain employment.


N/A6,464

students

This figure demonstrates reduction by this cohort in participation in VET in 2013 compared to 8,319 students in 2012.

Student Satisfaction N/A 75.9%This result is reported by NCVER in the latest Student Outcomes Survey.

Total cost per Student Contact Hr (SCH)Total funded expenditure (excluding depreciation)/Total SCH

N/A $7.82This performance indicator reflects the recurrent costs associated with the delivery of training.

Working Capital Ratio Current Assets/Current Liabilities (adjusted for non-current Long Service Leave)

1:1 times 1.3:1 timesWe strive to deliver greater than Government stipulation of 1:1.

Net Operating MarginFunded Surplus/Total Revenue (excluding Capital Funding)

1.0% (13.8%)

The Institute achieved a funded deficit after delivering a funded surplus for the past 7 years. This has occurred due to a unique year in which we have witnessed a significant reduction in funding rates along with a depressed economy.

Fee for Service Revenue(Fee for Service Revenue/Total Revenue % excluding capital funding)

38.5% 33.7%Fee for service revenue was below target due to the current economic climate

Revenue per EFT Total revenue (Excluding capital)/Average EFT staff

$110,648 $105,039Fell slightly short of budget due to the economic conditions even though we have considerably reduced our staffing levels.

Number of students with a disability 932 1,201The Institute experience a increase in 2013 of people with a disability participating in training compared to (2012 – 932).

Number of indigenous Students- Number of students from an Aboriginal or Torres Straits background

145 178

The Institute is held in high regard by the local Indigenous Community and the community focus of the training programs continues to attract participants. Indigenous take up of main stream courses is very positive (2012 – 145).

Note: N/A no target for 2013

STATEMENT OF PERFORMANCE


Glossary of Terms

Actuarial gains or losses on superannuation defined benefit plans

Actuarial gains or losses reflect movements in the superannuation liability resulting from differences between the assumptions used to calculate the superannuation expense from transactions and actual experience.

Associates

Associates are all entities over which an entity has significant influence but not control, generally accompanying a shareholding and voting rights of between 20 per cent and 50 per cent.

Comprehensive result

Total comprehensive result is the change in equity for the period other than changes arising from transactions with owners. It is the aggregate of net result and other non-owner changes in equity.

Capital asset charge

The capital asset charge represents the opportunity cost of capital invested in the non-current physical assets used in the provision of outputs.

Commitments

Commitments include those operating, capital and other outsourcing commitments arising from non-cancellable contractual or statutory sources.

Employee benefits expenses

Employee benefits expenses include all costs related to employment including wages and salaries, leave entitlements, redundancy payments and superannuation contributions.

Financial asset

A financial asset is any asset that is:(a) cash; (b) an equity instrument of another entity; (c) a contractual right: to receive cash or another financial asset from another entity;

or to exchange financial assets or financial liabilities with

another entity under conditions that are potentially favourable to the entity; or

(d) a contract that will or may be settled in the entity’s own equity instruments and is:

a non-derivative for which the entity is or may be obliged to receive a variable number of the entity’s own equity instruments; ora derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments

Grants and other transfers Transactions in which one unit provides goods, services, assets (or extinguishes a liability) or labour to another unit without receiving approximately equal value in return. Grants can either be operating or capital in nature. While grants to governments may result in the provision of some goods or services to the transferor, they do not give the transferor a claim to receive directly benefits of approximately equal value. Receipt and sacrifice of approximately equal value may occur, but only by coincidence. For example, governments are not obliged to provide commensurate benefits, in the form of goods or services, to particular taxpayers in return for their taxes. For this reason, grants are referred to by the AASB as involuntary transfers and are termed non-reciprocal transfers.

Grants can be paid as general purpose grants which refer to grants that are not subject to conditions regarding their use. Alternatively, they may be paid as specific purpose grants which are paid for a particular purpose and/or have conditions attached regarding their use.

Grants for on-passing

All grants paid to one institutional sector (e.g. a State general government) to be passed on to another institutional sector (e.g. local government or a private non-profit institution).

Financial statements

Depending on the context of the sentence where the term ‘financial statements’ is used, it may include only the main financial statements (i.e. comprehensive operating statement, balance sheet, cash flow statements, and statement of changes in equity); or it may also be used to replace the old term ‘financial report’ under the revised AASB 101 (Sept 2007), which means it may include the main financial statements and the notes.

Intangible assets

Intangible assets represent identifiable non-monetary assets without physical substance.

Interest expense

Costs incurred in connection with the borrowing of funds. Interest expenses include interest on bank overdrafts and short-term and long-term borrowings, amortisation of discounts or premiums relating to borrowings, interest component of finance leases repayments, and the increase in financial liabilities and non-employee provisions due to the unwinding of discounts to reflect the passage of time.


Interest revenue

Interest revenue includes interest received on bank term deposits, interest from investments, and other interest received.

Joint ventures

Joint ventures are contractual arrangements between the Institute and one or more other parties to undertake an economic activity that is subject to joint control. Joint control only exists when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control (the venturers). Net acquisition of non-financial assets (from transactions)

Purchases (and other acquisitions) of non-financial assets less sales (or disposals) of non-financial assets less depreciation plus changes in inventories and other movements in non-financial assets. Includes only those increases or decreases in non-financial assets resulting from transactions and therefore excludes write-offs, impairment write-downs and revaluations. Net result

Net result is a measure of financial performance of the operations for the period. It is the net result of items of revenue, gains and expenses (including losses) recognised for the period, excluding those that are classified as ‘other non-owner changes in equity’.

Net result from transactions/net operating balance

Net result from transactions or net operating balance is a key fiscal aggregate and is revenue from transactions minus expenses from transactions. It is a summary measure of the ongoing sustainability of operations. It excludes gains and losses resulting from changes in price levels and other changes in the volume of assets. It is the component of the change in net worth that is due to transactions and can be attributed directly to government policies.

Non-financial assets

Non-financial assets are all assets that are not ‘financial assets’.

Other economic flows

Other economic flows are changes in the volume or value of an asset or liability that do not result from transactions. They includes gains and losses from disposals, revaluations and impairments of non-current physical and intangible assets; actuarial gains and losses arising from defined benefit superannuation plans; fair value changes of financial instruments and agricultural assets; and depletion of natural assets (non-produced) from their use or removal. In simple terms, other economic flows are changes arising from market re-measurements.

Payables

Includes short and long term trade debt and accounts payable, grants and interest payable.

Receivables

Includes short and long term trade credit and accounts receivable, grants, taxes and interest receivable.

Sales of goods and services

Refers to revenue from the direct provision of goods and services and includes fees and charges for services rendered, sales of goods and services, fees from regulatory services, work done as an agent for private enterprises. It also includes rental income under operating leases and on produced assets such as buildings and entertainment, but excludes rent income from the use of non-produced assets such as land. User charges includes sale of goods and services revenue.

Supplies and services

Supplies and services generally represent cost of goods sold and the day-to-day running costs, including maintenance costs, incurred in the normal operations of the Institute.

Transactions

Transactions are those economic flows that are considered to arise as a result of policy decisions, usually an interaction between two entities by mutual agreement. They also include flows within an entity such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset. Taxation is regarded as mutually agreed interactions between the government and taxpayers. Transactions can be in kind (e.g. assets provided/given free of charge or for nominal consideration) or where the final consideration is cash. In simple terms, transactions arise from the policy decisions of the Institute.


Disclosure Index

The Annual Report of the entity is prepared in accordance with the Financial Management Act 1994 and the Directions of the Minister for Finance. This index has been prepared to facilitate identification of compliance with statutory disclosure requirements.

Item No Source reference REPORTING REQUIREMENTS Page No

REPORT OF OPERATIONSCHARTER AND PURPOSE

1 FRD 22D Manner of establishment and the relevant Minister 5,10

2 FRD 22D Objectives, functions, powers and duties 15

3 FRD 22D Nature and range of services provided including communities served 5

MANAGEMENT AND STRUCTURE

4 FRD 22D Organisational structure and chart, including accountabilities 9-21

5 FRD 22D Names of Board members 12-13

FINANCIAL AND OTHER INFORMATION

6 FRD 03A Accounting for Dividends N/A

7 FRD 07A Early adoption of authoritative accounting pronouncements N/A

8 FRD 10 Disclosure Index 120-123

9 FRD15B Executive officer disclosures 104-106

10 FRD 17A Long Service leave wage inflation and discount rates 93

11 FRD19 Private provision of public infrastructure N/A

12 FRD 20A Accounting for State motor vehicle lease arrangements prior to 1 Feb 2004 N/A

13 FRD22 Operational and budgetary objectives, performance against objectives and achievements 22-23

14 FRD 22D Occupational health and safety statement including performance indicator and performance against those indicators

33

15 FRD 22D Workforce data for current and previous reporting period including a statement on employment and conduct principles

35-37

16 FRD 22D Summary of the financial results for the year including previous 4 year comparisons 56

17 FRD 22D Significant changes in financial position during the year 22

18 FRD 22D Major changes or factors affecting performance 22

19 FRD 22D Post-balance sheet date events likely to significantly affect subsequent reporting periods 101

20 FRD 22D Summary of application and operation of the Freedom of Information Act 1982 54

21 FRD 22D Statement of compliance with building and maintenance provisions of the Building Act 1993 24

22 FRD 22D Statement on National Competition Policy 58

23 FRD 22D Summary of application and operation of the Protected Disclosure Act 2012 34

24 FRD 22D Summary of Environmental Performance. N/A

25 FRD 22C Details of consultancies over $10,000 (refer to FRD for information required) 55

26 FRD 22C Details of consultancies under $10,000 (refer to FRD for information required) 55

27 FRD 22D List of certain other information available on request (as specified in the FRD) 59

28 FRD 24C Reporting of office based environmental impacts N/A

29 FRD 25A Victorian Industry Participation Policy Disclosures N/A

30 FRD 26A Accounting for VicFleet motor vehicle lease arrangements on or after 1 February 2004

N/A

31 FRD 29 Workforce Data Disclosures on the public service employee workforce 35-37


Disclosure Index

32 FRD30A Standard requirements for the design and print of annual reports 59

33 SD 4.5.5 Risk Management compliance attestation 59

34 SD 4.2 (g) Qualitative and Quantitative information to be included 4-59

35 SD 4.2 (h) Statement that Report prepared in accordance with Financial Reporting Directions 64,116

36 SD 4.2 (j) Sign-off by member of Responsible Body 116

37 CG 10 (clause 27) Major Commercial Activities N/A

38 CG 12 (clause 33) Controlled Entities N/A

FINANCIAL REPORTFINANCIAL STATEMENTS REQUIRED UNDER PART 7 OF THE FINANCIAL MANAGEMENT ACT 1984

39 SD 4.2 (a) The financial statements must be prepared in accordance with:• Australian accounting standards (AAS and AASB standards) and other mandatory professional

reporting requirements (including urgent issues group consensus views);• Financial Reporting Directions; and • business rules.

70-79

40 SD 4.2 (b) The financial statements are to comprise the following:• income statement;• balance sheet;• statement of recognised income and expense; and • cash flows statement; and• notes to the financial statements.

65

OTHER REQUIREMENTS UNDER STANDING DIRECTION 4.2

41 SD 4.2 (c) The financial statements must where applicable be signed and dated by the Accountable Officer, CFAO and a member of the Responsible Body, stating whether, in their opinion:• the financial statements present fairly the financial transactions during the reporting period and

the financial position at the end of the period;• the financial statements are prepared in accordance with this direction and applicable Financial

Reporting Directions; and • the financial statements comply with applicable Australian accounting standards (AAS and AASB

standards) and other mandatory professional reporting requirements (including urgent issues group consensus views).

64

42 SD 4.2 (d) Rounding of amounts. 77

43 SD 4.2 (e) Review and sign off by Audit Committee or responsible body 17

44 SD 4.2 (f) Compliance with DTF Model Financial report 64

OTHER REQUIREMENTS AS PER FINANCIAL REPORTING DIRECTIONS IN NOTES TO THE FINANCIAL STATEMENTS

45 FRD Disclosure of administered assets and liabilities N/A

46 FRD 11 Disclosure of ex-gratia payments 106

47 FRD 21B Disclosures of Responsible Persons, Executive Officer and Other Personnel (Contractors with significant management responsibilities) in the Financial Report

104

48 FRD 101 First time adoption N/A

49 FRD Inventories 86

50 FRD 103D Non-current physical assets 89-90

51 FRD 104 Foreign currency 92

52 FRD 105A Borrowing costs 94

53 FRD 106 Impairment of assets N/A

54 FRD 109 Intangible assets 91

55 FRD 107 Investment properties N/A



Disclosure Index

56 FRD 110 Cash flow statements 68

57 FRD 112C Defined benefit superannuation obligations 103

58 FRD 113 Investment in subsidiaries, jointly controlled entities and associates N/A

59 FRD 114A Financial instruments – general government entities and public non-financial corporations 108-113

60 FRD 115 Non-current physical assets – first time adoption N/A

61 FRD 119 Contributions by owners 95

62 FRD 119A Transfers through contributed capital 95

63 FRD 120G Accounting and reporting pronouncements applicable to the reporting period 78-79

64 FRD 121 Infrastructure assets N/A

PART 7 OF THE FINANCIAL MANAGEMENT ACT 1994 (FMA)

65 FMA 49 (a) Must contain such information as required by the Minister. 65-68

66 FMA 49 (b) Must be prepared in a manner and form approved by the Minister. 65-68

67 FMA 49 (c) Must present fairly the financial transactions of an institute during the financial year to which they relate.

65-68

68 FMA 49 (d) Must present fairly the financial position of an institute as at the end of the year. 65-68

69 FMA 49 (e) Must be certified by the Accountable Officer for an institute in the manner approved by the Minister.

64

COMPLIANCE WITH OTHER LEGISLATION AND SUBORDINATE INSTRUMENTS

70 Legislation The TAFE institute Annual Report must contain a statement that it complies with all relevant legislation and subordinate instruments, including, but not limited to, the following:• Education and Training Reform Act 2006 (ETRA)• TAFE institute constitution• Directions of the Minister for Higher Education and Skills (or predecessors)• TAFE institute Commercial Guidelines• TAFE institute Strategic Planning Guidelines• Public Administration Act 2004• Freedom of Information Act 1982• Building Act 1983• Protected Disclosure Act 2012• Victorian Industry Participation Policy Act 2003

24,34,55

71 ETRAs 3.2.8

Statement about compulsory non-academic fees, subscriptions and charges payable in 2013 30

PRESENTATION OF REPORTING AND PERFORMANCE INFORMATIONAudited Statements of Key Performance Measures (KPIs) must include an audited statement of performance for certain KPIs.

72 FRD 27B Reporting and performance should be presented using KPIs and a signed Performance Management Certificate should also be completed.

1. Participation of 15-24 year olds.2. 2Participation of 25-64 year olds.3. Module Load Completion Rate.4. Student satisfaction.5. Total Cost per Student Contact Hour (SCH).6. Working Capital Ratio.7. Net Operating Margin.8. Fee for Service Revenue.9. Revenue per EFT Staff.10. Student Contact Hours (SCH).11. Energy Consumption.

117

OVERSEAS OPERATIONS OF VICTORIAN TAFE INSTITUTES

73 PAEC and VAGO (June 2003 Special Review item 3.110)

• financial and other information on initiatives taken or strategies relating to the institute’s overseas operations.

• nature of strategic and operational risks for overseas operations;• strategies established to manage such risks of overseas operations;• performance measures and targets formulated for overseas operations;• the extent to which expected outcomes for overseas operations have been achieved

50-51



Contact UsEmail [email protected] www.gippstafe.edu.auPost PO Box 3279 GMC Morwell 3841Fax 1300 094 661

Training Locations

GippsTAFE Academy49-63 Princess Street, Traralgon 3844 (03) 5175 9600

Chadstone Campus41 Drummond Street, Chadstone 3148(03) 9251 3000

GETT Centre49-63 Princess Street, Traralgon 3844(03) 5175 9650

Leongatha CampusNerrena Road, Leongatha 3953(03) 5662 6800

Morwell CampusCorner Princess Drive and Monash Way, Morwell 3840(03) 5120 4500

Warragul CampusQueen Street, Warragul 3820(03) 5622 8500

Yallourn CampusMonash Road, Newborough 3825(03) 5127 0277

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