26 TasTAFE

Authority Outline

TasTAFE is a Statutory Authority, established by the Training and Workforce Development Act 2013. Governed by a Board of Directors, 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 within 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 in 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; regional locations; and workplaces across the State. TasTAFE is also offering increasing opportunities for students to access online training services.

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

This chapter provides financial information for TasTAFE for 2016‑17 and the Forward Estimates period (2017‑18 to 2019‑20). Further information on TasTAFE is provided at www.tastafe.tas.edu.au.

Key Deliverables

TasTAFE's key deliverables are driven by the Government's priorities and TasTAFE Board's corporate plan.

TasTAFE is developing a new organisational education strategy aimed at creating a more holistic system of VET delivery across Tasmania, aligned with industry growth areas. This strategy will initially focus on the advanced manufacturing, agricultural, construction and human services industries. The 2016‑17 Budget includes a commitment of $3 million over two years commencing in 2017‑18 to support this initiative through capital investment.

Other initiatives include:

       the enhancement of TasTAFE's new organisational and operational model, with a focus on streamlining management of TasTAFE's delivery, support and corporate service functions in order to improve service delivery, achieve business efficiencies and ongoing business sustainability;

       the implementation of the TasTAFE Education Blueprint that has been developed to guide a contemporary approach to TasTAFE's VET delivery;

       strengthening TasTAFE's contribution to the skills requirements of the State's successful tourism and hospitality sector, particularly through the development of local, interstate and international partnerships;

       keeping TasTAFE's training activities and capabilities focussed on industry need and social and economic drivers;

       achieving measurable increases in core skills around literacy, numeracy, reasoning and writing. Future work will build upon a 2015-16 pilot of a VET initiative that worked with 2 500 TasTAFE and private RTO students that measured progress of these skills;

       new business growth initiatives generated through the TasTAFE Business Development 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 a greater emphasis upon engagement with prospective students, particularly those still in the schooling system;

       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 continued implementation of a newly acquired student management system in two stages in 2017.


Detailed Budget Statements

Table 26.1: Statement of Comprehensive Income

 

2015‑16)

 

Budget)

2016‑17)

 

Budget)

2017‑18)

Forward)

Estimate)

2018‑19)

Forward)

Estimate)

2019‑20)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Revenue and other income from transactions

 

 

 

 

 

Grants1

78 579)

75 350)

77 856)

78 875)

78 407)

Sales of goods and services2

25 850)

24 500)

24 990)

25 490)

26 000)

Total revenue and other income from transactions

104 429)

99 850)

102 846)

104 365)

104 407)

 

 

 

 

 

 

Expenses from transactions

 

 

 

 

 

Employee benefits3

71 144)

69 860)

70 889)

71 800)

72 697)

Depreciation and amortisation4

9 000)

7 445)

8 145)

8 145)

8 145)

Supplies and consumables

29 524)

29 750)

30 048)

30 348)

30 651)

Borrowing costs

1)

....)

....)

....)

....)

Total expenses from transactions

109 669)

107 055)

109 082)

110 293)

111 493)

 

 

 

 

 

 

Net result from transactions (net operating balance)

(5 240)

(7 205)

(6 236)

(5 928)

(7 086)

 

 

 

 

 

 

Net result

(5 240)

(7 205)

(6 236)

(5 928)

(7 086)

 

 

 

 

 

 

Comprehensive result

(5 240)

(7 205)

(6 236)

(5 928)

(7 086)

 

 

 

 

 

 

Notes:

1. The decrease in Grants in 2016‑17 primarily reflects the cessation of funding for the 27th pay.

2. The decrease in Sales of goods and services in 2016‑17 reflects estimated declining contestable training revenue due to increased competition with RTOs.

3. The decrease in Employee benefits in 2016‑17 reflects estimated declining contestable training revenue and associated changes to the TasTAFE workforce.

4. The decrease in Depreciation and amortisation in 2016‑17 reflects the revaluation of property undertaken at 30 June 2015.


Table 26.2: Statement of Financial Position as at 30 June

 

2016)

 

Budget)

2017)

 

Budget)

2018)

Forward)

Estimate)

2019)

Forward)

Estimate)

2020)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Assets

 

 

 

 

 

Financial assets

 

 

 

 

 

Cash and deposits

666)

1 466)

1 438)

892)

1 125)

Receivables1

5 506)

3 059)

3 482)

3 182)

2 844)

Other financial assets1

....)

1 289)

1 289)

1 289)

1 289)

 

6 172)

5 814)

6 209)

5 363)

5 258)

Non‑financial assets

 

 

 

 

 

Inventories

291)

226)

226)

226)

226)

Property, plant and equipment2

237 887)

169 835)

165 190)

160 545)

154 400)

Heritage and cultural assets

....)

21)

21)

21)

21)

Intangibles3

....)

7 020)

6 570)

6 120)

5 670)

Other assets4

3 324)

2 383)

1 933)

1 483)

1 033)

 

241 502)

179 485)

173 940)

168 395)

161 350)

 

 

 

 

 

 

Total assets

247 674)

185 299)

180 149)

173 758)

166 608)

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Payables4

1 693)

6 997)

8 247)

7 947)

8 047)

Employee benefits

17 599)

16 482)

16 318)

16 155)

15 991)

Other liabilities

20)

....)

....)

....)

....)

Total liabilities

19 312)

23 479)

24 565)

24 102)

24 038)

 

 

 

 

 

 

Net assets (liabilities)

228 362)

161 820)

155 584)

149 656)

142 570)

 

 

 

 

 

 

Equity

 

 

 

 

 

Contributed capital

228 346)

228 037)

228 037)

228 037)

228 037)

Reserves2

16 976)

5 653)

5 653)

5 653)

5 653)

Accumulated funds2

(16 960)

(71 870)

(78 106)

(84 034)

(91 120)

Total equity

228 362)

161 820)

155 584)

149 656)

142 570)

 

 

 

 

 

 

Notes:

1. The variations in these items primarily reflects a reclassification between Receivables and Other financial assets based on 30 June 2015 actuals.

2. The decreases in Property, plant and equipment, Reserves and Accumulated funds reflect the revaluation of property undertaken at 30 June 2015.

3. The increase in Intangibles reflects the completion of the new student management system which will be amortised over 10 years.

4. The variations in Other assets and Payables reflect revised estimates based on 30 June 2015 actuals.


Table 26.3: Statement of Cash Flows

 

2015‑16)

 

Budget)

2016‑17)

 

Budget)

2017‑18)

Forward)

Estimate)

2018‑19)

Forward)

Estimate)

2019‑20)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Grants1

78 579)

75 350)

77 856)

78 875)

78 407)

Sales of goods and services2

25 550)

24 775)

24 790)

25 640)

26 150)

GST receipts

5 572)

7 147)

7 201)

7 631)

7 726)

Total cash inflows

109 701)

107 272)

109 847)

112 146)

112 283)

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Employee benefits3

(65 393)

(62 000)

(62 939)

(63 723)

(64 518)

Superannuation

(8 037)

(7 860)

(8 114)

(8 240)

(8 343)

Borrowing costs

(1)

....)

....)

....)

....)

GST payments

(5 572)

(7 368)

(7 424)

(7 481)

(7 538)

Supplies and consumables

(29 474)

(29 850)

(28 798)

(30 648)

(30 551)

Total cash outflows

(108 477)

(107 078)

(107 275)

(110 092)

(110 950)

 

 

 

 

 

 

Net cash from (used by) operating activities

1 224)

194)

2 572)

2 054)

1 333)

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Payments for acquisition of non‑financial assets4

(3 130)

(3 450)

(2 600)

(2 600)

(1 100)

Net cash from (used by) investing activities

(3 130)

(3 450)

(2 600)

(2 600)

(1 100)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Net borrowings5

(843)

....)

....)

....)

....)

Net cash from (used by) financing activities

(843)

....)

....)

....)

....)

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents held

(2 749)

(3 256)

(28)

(546)

233)

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting period

3 415)

4 722)

1 466)

1 438)

892)

Cash and deposits at the end of the reporting period

666)

1 466)

1 438)

892)

1 125)

 

 

 

 

 

 

Notes:

1. The decrease in Grants in 2016‑17 primarily reflects the cessation of funding for the 27th pay.

2. The decrease in Sales of goods and services in 2016‑17 reflects estimated declining contestable training revenue due to increased competition with RTOs.

3. The decrease in Employee benefits in 2016‑17 reflects estimated declining contestable training revenue and associated changes to the TasTAFE workforce.

4. The increase in Payments for acquisition of non‑financial assets in 2016‑17 reflects payments for the new student management system. Increases in 2017‑18 and 2018‑19 compared with the 2015‑16 Budget reflect additional funding for TasTAFE infrastructure investment of $1.5 million in each year.

5. The decrease in Net borrowings in 2016‑17 reflects the repayment of a loan provided from Finance-General to the former Tasmanian Skills Institute under the Targeted Voluntary Redundancy Program.