26   TasTAFE

Authority Outline

TasTAFE is a Statutory Authority, governed by the Training and Workforce Development Act 2013. TasTAFE is the single entity responsible for public sector post‑compulsory Vocational Education and Training (VET) in Tasmania. Through its status as a registered training organisation (RTO) its role is to enable Tasmanians to gain skills and qualifications needed for the State's workforce and to support the community to succeed and prosper.

TasTAFE operates predominantly in a contestable training market in Tasmania as well as a commercial international student market. It services the training needs of individual learners as well as providing training and workforce skills development services to Tasmanian employers and their employees.

The scope of training provided by TasTAFE aims to support the economic and policy priorities of the Government and covers the major trade, technical and vocational occupations represented in the Tasmanian economy.

Training is conducted statewide at training centres in Hobart, Clarence, Claremont, Launceston, Devonport and Burnie; in Trade Training Centres; in regional locations and in workplaces across the State. TasTAFE is also offering increasing opportunities for students to access online training services.

The Board of TasTAFE is accountable to the Minister for Education and Training, Hon Jeremy Rockliff MP.

This chapter provides financial information for TasTAFE for 2015‑16 and over the Forward Estimates period (2016‑17 to 2018‑19).

Key Deliverables

TasTAFE's key deliverables are driven both by Government and organisational agendas. TasTAFE will continue to seek to achieve operational efficiencies in support of the Government's budget management strategy. This, in part, will be reflected in a new organisational structure aimed at transitioning TasTAFE to a contemporary, efficient and competitive training organisation.

Particular initiatives will include:

·       the implementation of TasTAFE's new organisational and operational model, with a focus on streamlining management of TasTAFE's delivery, support and corporate service functions and changing delivery team structures in order to improve service delivery and achieve business efficiencies;

·       further development of the TasTAFE Education Blueprint that has, to date, defined TasTAFE's core business and is now being used in discussions with external stakeholders;

·       continued improvement of TasTAFE's organisational practices, using TasTAFE's Developing TasTAFE framework to respond to the findings of multiple staff capability surveys undertaken in 2014‑15 and to maintain a focus on the pursuit of growth alongside improved effectiveness and efficiency;

·       continued efforts to keep TasTAFE's training activities and capabilities focussed on industry need as well as social and economic drivers, with particular attention on the decline in employer demand for apprentices and the continuing need to support young Tasmanians who are not in work;

·       the pilot of a vocational education initiative that will work with 3 000 students drawn from TasTAFE and private RTOs with a view to measuring the progress of their core skills around literacy, numeracy, reasoning  and writing twice over a 12 month period. The initiative will apply customised inputs based on the initial assessments to seek to achieve measurable increases in these skills that make individuals better at their jobs;

·       new business growth initiatives generated through the Growing TasTAFE framework, with a focus on improving engagement with prospective and existing students through formal frameworks and improved use of technology, as well as a comprehensive campaign to increase student numbers through open days and pop-up information booths;

·       continued growth in the use of TasTAFE's virtual learning environment to modernise educational practices by providing TasTAFE students with access to more online learning opportunities and learning resources; and

·       the implementation of a newly acquired student management system in two stages in 2016 and 2017 at an estimated total cost of $5.8 million.


Detailed Budget Statements

Table 26.1:        Statement of Comprehensive Income

 

2014-15)

 

Budget)

2015-16)

 

Budget)

2016-17)

Forward)

Estimate)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Revenue and other income from transactions

 

 

 

 

 

Grants1

 80 473)

 78 579)

 76 850)

 77 856)

 78 875)

Sales of goods and services2

 27 505)

 25 850)

 26 657)

 27 476)

 28 321)

Total revenue and other income from transactions

 107 978)

 104 429)

 103 507)

 105 332)

 107 196)

 

 

 

 

 

 

Expenses from transactions

 

 

 

 

 

Employee benefits3

 75 218)

 71 144)

 71 977)

 73 673)

 74 703)

Depreciation and amortisation4

 9 000)

 9 000)

 9 570)

 9 570)

 9 570)

Supplies and consumables

 30 435)

 29 524)

 29 842)

 30 465)

 30 541)

Borrowing costs

  29)

  1)

....)

....)

....)

Total expenses from transactions

 114 682)

 109 669)

 111 389)

 113 708)

 114 814)

 

 

 

 

 

 

Net result from transactions (net operating balance)

(6 704)

(5 240)

(7 882)

(8 376)

(7 618)

 

 

 

 

 

 

Net result

(6 704)

(5 240)

(7 882)

(8 376)

(7 618)

 

 

 

 

 

 

Other economic flows - other non-owner changes in equity

 

 

 

 

 

Changes in physical asset revaluation reserve5

 15 000)

....)

 17 500)

....)

....)

Total other economic flows - other non-owner changes in equity

 15 000)

....)

 17 500)

....)

....)

 

 

 

 

 

 

Comprehensive result

 8 296)

(5 240)

 9 618)

(8 376)

(7 618)

 

 

 

 

 

 

Notes:

1.   The decrease in Grants in 2015‑16 reflects the reclassification of revenue generated through services provided to the Department of Education to Sales of goods and services, partly offset by additional funding associated with the 27th pay. The decrease in 2016-17 reflects the removal of funding for the 27th pay.

2.   The decrease in Sales of goods and services in 2015‑16 reflects declining contestable training revenue through increased competition with private RTOs, partly offset by the reclassification of revenue generated through services provided to the Department of Education from Grants.

3.   The decrease in Employee benefits in 2015‑16 reflects the organisational redesign undertaken by TasTAFE in 2014‑15.

4.   The increase in Depreciation and amortisation in 2016-17 reflects the amortisation of the new Student Management System.

5.   The movements in Changes in physical asset revaluation reserve reflect the anticipated increase in valuation of land and buildings.

 

 


Table 26.2:        Statement of Financial Position as at 30 June

 

2015)

 

Budget)

2016)

 

Budget)

2017)

Forward)

Estimate)

2018)

Forward)

Estimate)

2019)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Assets

 

 

 

 

 

Financial assets

 

 

 

 

 

Cash and deposits1

 3 550)

  666)

 1 059)

 1 031)

 1 811)

Receivables2

 3 317)

 5 506)

 5 231)

 5 431)

 5 281)

 

 6 867)

 6 172)

 6 290)

 6 462)

 7 092)

Non-financial assets

 

 

 

 

 

Inventories2

  381)

  291)

  291)

  291)

  291)

Property, plant and equipment2

 251 156)

 237 887)

 247 587)

 239 089)

 230 591)

Other assets

....)

 3 324)

 3 324)

 3 324)

 3 324)

 

 251 537)

 241 502)

 251 202)

 242 704)

 234 206)

 

 

 

 

 

 

Total assets

 258 404)

 247 674)

 257 492)

 249 166)

 241 298)

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Payables

 1 506)

 1 693)

 1 593)

 1 843)

 1 793)

Interest bearing liabilities3

  917)

....)

....)

....)

....)

Employee benefits2

 16 395)

 17 599)

 17 899)

 17 699)

 17 499)

Other liabilities

....)

  20)

  20)

  20)

  20)

Total liabilities

 18 818)

 19 312)

 19 512)

 19 562)

 19 312)

 

 

 

 

 

 

Net assets (liabilities)

 239 586)

 228 362)

 237 980)

 229 604)

 221 986)

 

 

 

 

 

 

Equity

 

 

 

 

 

Contributed Capital

 229 608)

 228 346)

 228 346)

 228 346)

 228 346)

Reserves

 19 628)

 16 976)

 34 476)

 34 476)

 34 476)

Accumulated funds

(9 650)

(16 960)

(24 842)

(33 218)

(40 836)

Total equity

 239 586)

 228 362)

 237 980)

 229 604)

 221 986)

 

 

 

 

 

 

Notes:

1.   The decrease in Cash and deposits in 2016 reflects the purchase of the new Student Management System.

2.   The decrease in Inventories and Property, plant and equipment and the increase in Receivables and Employee benefits in 2016 reflects revised estimates based on 30 June 2014 actuals.

3.   Interest bearing liabilities reflects the inherited liabilities from the former Tasmanian Skills Institute and Tasmanian Polytechnic, which are scheduled to be repaid by June 2016.

 


Table 26.3:        Statement of Cash Flows

 

2014-15)

 

Budget)

2015-16)

 

Budget)

2016-17)

Forward)

Estimate)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Grants1

 80 473)

 78 579)

 76 850)

 77 856)

 78 875)

Sales of goods and services2

 27 630)

 25 550)

 26 932)

 27 276)

 28 471)

GST receipts

 5 754)

 5 572)

 5 595)

 5 618)

 5 640)

Total cash inflows

 113 857)

 109 701)

 109 377)

 110 750)

 112 986)

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Employee benefits3

(67 533)

(65 393)

(63 579)

(65 441)

(66 330)

Superannuation

(7 998)

(8 037)

(8 098)

(8 432)

(8 573)

Borrowing costs

(29)

(1)

....)

....)

....)

GST payments

(5 754)

(5 572)

(5 595)

(5 618)

(5 640)

Supplies and consumables

(30 135)

(29 474)

(29 942)

(30 215)

(30 591)

Total cash outflows

(111 449)

(108 477)

(107 214)

(109 706)

(111 134)

 

 

 

 

 

 

Net cash from (used by) operating activities

 2 408)

 1 224)

 2 163)

 1 044)

 1 852)

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Payments for acquisition of non-financial assets4

(2 500)

(3 130)

(1 770)

(1 072)

(1 072)

Net cash from (used by) investing activities

(2 500)

(3 130)

(1 770)

(1 072)

(1 072)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Net borrowings5

(1 658)

(843)

....)

....)

....)

Net cash from (used by) financing activities

(1 658)

(843)

....)

....)

....)

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents held

(1 750)

(2 749)

  393)

(28)

  780)

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting period

 5 300)

 3 415)

  666)

 1 059)

 1 031)

Cash and deposits at the end of the reporting period

 3 550)

  666)

 1 059)

 1 031)

 1 811)

 

 

 

 

 

 

Notes:

1.   The decrease in Grants in 2015‑16 reflects the reclassification of revenue generated through services provided to the Department of Education to Sales of goods and services, partly offset by additional funding associated with the 27th pay. The decrease in 2016-17 reflects the removal of funding for the 27th pay.

2.   The decrease in Sales of goods and services in 2015‑16 reflects declining contestable training revenue through increased competition with private RTOs, partly offset by the reclassification of revenue generated through services provided to the Department of Education from Grants.

3.   The decrease in Employee benefits in 2015‑16 reflects the organisational redesign undertaken by TasTAFE in 2014‑15.

4.   The increase in Payments for acquisition of non-financial assets in 2015‑16 reflects payments for the purchase of the new Student Management System and other equipment replacements.

5.   The decrease in Net borrowings in 2015‑16 reflects the repayment of a loan provided from Finance‑General to the former Tasmanian Skills Institute under the Targeted Voluntary Redundancy Program.