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 public sector entity responsible for post‑compulsory Vocational Education and Training in Tasmania. Through its status as a registered training organisation, 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 is the largest vocational education and training provider in Tasmania, providing the majority of training for Tasmanian businesses. TasTAFE also operates in the contestable training market in Tasmania and in the 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 Tasmanian Government, business and industry, and covers the major trade, technical and vocational occupations represented in the Tasmanian economy.

Training is conducted statewide at TasTAFE facilities in Hobart, Clarence, Claremont, Launceston, Alanvale, Devonport and Burnie; in Trade Training Centres; regional locations; workplaces across the State; and online.

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

This chapter provides financial information for TasTAFE for 2018‑19 and over the Forward Estimates period (2019‑20 to 2021‑22). 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’s Corporate Plan.

TasTAFE continues to develop contemporary strategies and plans aimed at creating accessible and quality VET delivery across Tasmania, with a strong emphasis on industry partnerships. Strategies will continue to focus on the advanced manufacturing, agricultural, construction, human services, and the tourism and hospitality sectors. TasTAFE will continue to re-position itself and be more responsive to the needs of communities that do not have ready access to existing TasTAFE infrastructure.

The 2017-18 Budget included an allocation of $3.2 million over two years for the development of a Drysdale Centre of Excellence. The 2018-19 Budget includes an additional investment of $3.5 million for the further development of Drysdale at new locations in Devonport and Claremont. The 2018‑19 Budget and Forward Estimates also include an amount of $12 million for the development of centres of excellence in Trades and Water and Agriculture.

This brings the total commitment for the development of centres of excellence to $18.7 million over the 2018‑19 Budget and Forward Estimates. In summary, the total investment will include:

·       $6.7 million for Investment in Drysdale as a Centre of Excellence, including delivery points in Claremont and Devonport;

·       $7 million for the development of a Trades and Water Centre of Excellence based at Clarence in Hobart; and

·       $5 million for an Agricultural Centre of Excellence based at Freer Farm, Burnie.

In addition to the above initiatives, the 2018-19 Budget also includes $1.5 million for the continuation of the Education Architecture initiative announced in 2016‑17.

Detailed Budget Statements

Table 26.1:       Statement of Comprehensive Income1

2017-18  2018-19  2019-20  2020-21  2021-22        Forward  Forward  Forward    Budget  Budget  Estimate  Estimate  Estimate    $'000  $'000  $'000  $'000  $'000              Revenue and other income from transactions           Grants2 79 171  84 920  89 557  78 583  79 623  Sales of goods and services 25 651  24 150  24 659  25 153  25 656  Interest3 ....  125  140  125  125  Total revenue and other income from transactions 104 822  109 195  114 356  103 861  105 404              Expenses from transactions           Employee benefits4 69 484  71 957  72 025  72 770  73 499  Depreciation and amortisation5 7 365  8 825  8 655  8 970  8 511  Supplies and consumables 31 440  31 170  31 108  31 419  31 695  Total expenses from transactions 108 289  111 952  111 788  113 159  113 705              Net result from transactions (net operating balance) (3 467) (2 757) 2 568  (9 298) (8 301)             Net result (3 467) (2 757) 2 568  (9 298) (8 301)             Comprehensive result (3 467) (2 757) 2 568  (9 298) (8 301)

Notes:

1.    Authority estimates do not include the indexation impact of any variations to Authority expenditure that have been made since the finalisation of the Revised Estimates Report 2017-18 (including December Quarterly Report). For further information see chapter 1 of this Budget Paper.

2.    The increase in Grants in 2018‑19 reflects additional funding of $3.5 million to further develop the Drysdale Centre of Excellence in Devonport and Claremont, this is in addition to the $2.4 million already committed in the 2018‑19 Budget. The increase in 2019‑20 reflects funding for the development of a Trades and Water Centre of Excellence and an Agricultural Centre of Excellence.

3.    The increase in Interest is due to a reclassification as Interest had previously been recorded as Sales of goods and services.

4.    The increase in Employee benefits in 2018‑19 reflects anticipated expenditure related to addressing findings from the WLF Accounting & Advisory investigation and requirements arising from the Australian Skills Quality Authority re‑registration.

5.    The increase in Depreciation and amortisation in 2018‑19 reflects the impairment of assets purchased in 2016‑17 and 2017‑18.

Table 26.2:       Statement of Financial Position as at 30 June

2018  2019  2020  2021  2022        Forward  Forward  Forward    Budget  Budget  Estimate  Estimate  Estimate    $'000  $'000  $'000  $'000  $'000              Assets           Financial assets           Cash and deposits 6 896  6 367  2 421  2 440  2 950  Receivables1 3 359  5 608  4 992  4 375  3 757  Other financial assets1 1 289  ....  ....  ....  ....    11 544  11 975  7 413  6 815  6 707              Non-financial assets           Inventories2 226  ....  ....  ....  ....  Property, plant and equipment3 172 963  163 077  169 674  161 812  153 950  Heritage and cultural assets 21  26  26  26  26  Intangibles3 ....  2 826  1 719  611  ....  Other assets4 1 075  ....  ....  ....  ....    174 285  165 929  171 419  162 449  153 976              Total assets 185 829  177 904  178 832  169 264  160 683              Liabilities           Payables5 8 247  5 362  3 862  3 762  3 662  Employee benefits 16 318  16 470  16 280  16 060  15 830  Other liabilities5 ....  2 700  2 750  2 800  2 850  Total liabilities 24 565  24 532  22 892  22 622  22 342              Net assets (liabilities) 161 264  153 372  155 940  146 642  138 341              Equity           Contributed capital6 228 037  227 033  227 033  227 033  227 033  Reserves7 5 653  9 880  9 880  9 880  9 880  Accumulated funds (72 426) (83 541) (80 973) (90 271) (98 572) Total equity 161 264  153 372  155 940  146 642  138 341

Notes:

1.   The increase in Receivables and decrease in Other financial assets in 2019 reflects a reclassification of accrued revenue related to training activities completed during the financial year which have not been invoiced at year end.

2.   The decrease in Inventories in 2019 reflects a change in the treatment of Inventories to be fully expensed at time of purchase.

3.   The decrease in Property, plant and equipment and increase in Intangibles in 2019 reflects a reclassification of the student management system, which was implemented in January 2017 and will be amortised over the next five years.

4.   The decrease in Other assets in 2019 reflects the full impairment of Library stock during 2017‑18.

5.   The decrease in Payables and increase in Other liabilities in 2019 reflects the reclassification of student fees invoiced in advance.

6.   The decrease in Contributed capital in 2019 reflects proceeds paid to the Crown Lands Administration Fund from the partial sale of the Valley Road Campus at Devonport in 2016-17.

7.   The increase in Reserves in 2019 reflects the increase in the asset valuation indices for Buildings, as recommended by the Office of the Valuer‑General in 2016-17.

 

 

Table 26.3:       Statement of Cash Flows

2017-18  2018-19  2019-20  2020-21  2021-22        Forward  Forward  Forward    Budget  Budget  Estimate  Estimate  Estimate    $'000  $'000  $'000  $'000  $'000              Cash flows from operating activities           Cash inflows           Grants1 79 171  84 920  89 557  78 583  79 623  Sales of goods and services 25 451  25 438  25 234  25 728  26 231  GST receipts 3 360  3 360  3 712  3 766  3 821  Interest Received2 ....  125  140  125  125  Total cash inflows 107 982  113 843  118 643  108 202  109 800              Cash outflows           Employee benefits3 (61 764) (63 969) (63 946) (64 614) (65 268) Superannuation (7 884) (8 252) (8 269) (8 376) (8 461) GST payments (3 464) (3 464) (3 621) (3 674) (3 728) Supplies and consumables (30 190) (31 497) (32 608) (31 519) (31 833) Total cash outflows (103 302) (107 182) (108 444) (108 183) (109 290)             Net cash from (used by) operating activities 4 680  6 661  10 199  19  510              Cash flows from investing activities           Payments for acquisition of non-financial assets (3 065) (6 300) (14 145) ....  ....  Net cash from (used by) investing activities (3 065) (6 300) (14 145) ....  ....              Net increase (decrease) in cash and cash equivalents held 1 615  361  (3 946) 19  510              Cash and deposits at the beginning of the reporting period 5 281  6 006  6 367  2 421  2 440  Cash and deposits at the end of the reporting period 6 896  6 367  2 421  2 440  2 950

Notes:

1.   The increase in Grants in 2018‑19 reflects additional funding of $3.5 million to further develop the Drysdale Centre of Excellence in Devonport and Claremont, this is in addition to the $2.4 million already committed in the 2018‑19 Budget. The increase in 2019‑20 reflects funding for the development of a Trades and Water Centre of Excellence, and an Agricultural Centre of Excellence.

2.   The increase in Interest received is due to a reclassification as Interest and had previously been recorded as Sales of goods and services.

3.   The increase in Employee benefits in 2018‑19 reflects anticipated expenditure related to addressing findings from the WLF Accounting & Advisory investigation and requirements arising from the Australian Skills Quality Authority re‑registration.