2008 ar draft pilbara tafe - parliament of western australia · executive summary managing...

Pilbara TAFE Annual Report 2008

TABLE OF CONTENTS Overview of Agency: Executive Summary Managing Director’s report 2 Organisational Structure College Council 4 Management Structure 5 Performance Management Framework Strategic Plan Overview 6 Agency Performance ` State Training Priorities vs Agency Performance 7 Agency Key Priorities 9 Significant Issues and Trends Factors affecting delivery 10 Governance Disclosures Enabling Legislation 10 Advertising Spend 10 Disability Access and Inclusion Plan Outcomes Compliance Report 11 Compliance with Public Sector Standards and Ethical Codes Freedom of Information 12 Contract with Senior Officers 13 Record Keeping Plans 13 Government Policy Requirements Corruption Prevention 14 Sustainability 14 Occupational Safety and Health 15 Disclosures and Legal Compliance Financial Statements 16 S40 Information 42 Key Performance Indicators Information 46 Contact details 54

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EXECUTIVE SUMMARY MANAGING DIRECTOR’S REPORT It is with pleasure that I present Pilbara TAFE’s 2008 Annual Report. 2008 has been a year of many challenges to the College. Industry and business growth proceeded strongly in the Pilbara but there was a levelling off in the last part of the year. A key challenge was to deliver training to a workforce and community with high employment levels by continuing to implement flexible approaches. These approaches included greater use of skills recognition services, more on-the-job training and assessment, and blended approaches using on-line and videoconferencing. This allowed Pilbara TAFE to deliver 5% more training in 2008 compared to the previous year Another challenge was to improve our training for Indigenous people to increase their workforce participation. Of particular interest was the growth in Work Ready programs in conjunction with industry, many of these programs having close to 100% employment outcomes. Our customers were very satisfied with our training and related services. In 2008 the College received an overall satisfaction rating of 86%. This is significantly higher than for 2007. Attracting and retaining skilled College staff continues to be a challenge. Through improvements in our recruitment processes and better support for staff we have minimised staff turnover, and in most areas have had sufficient staff to conduct our business. Quality assurance in training was an area of high focus. The College had a full compliance audit by the Training and Accreditation Council and had a small number of non-compliances. The College will be undertaking another audit in 2009. Seeing this as an opportunity will allow the implementation of a positive teams-based approach to quality improvement, not only in training compliance, but also other business areas such as Client Services. The VET for Schools program continues to grow, providing skills and VET qualifications for school students as part of their senior schooling. The College’s ongoing partnerships with Curtin University Centre for Regional Education and Australian Technical College – Pilbara are providing education and training pathways and are creating significant benefit to the region. On behalf of Pilbara TAFE Governing Council I would like to congratulate and thank staff for their efforts in 2008, a very challenging year in vocational education and training. I would also like to acknowledge the contribution of the College Governing Council to our strategic directions, in particular the contribution of outgoing Governing Council Chair Mr. Bob Stratton and Deputy Chair Ms. Joneen Scott.

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In 2009 I look forward to building on our stakeholder relationships to ensure the best possible education and training opportunities for the Pilbara region. With these relationships in place and continued staff commitment, Pilbara TAFE can rightly claim to be ‘first choice in vocational education and training’ in the Pilbara. Dr Barry McKnight Managing Director

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ORGANISATIONAL STRUCTRE COLLEGE COUNCIL (as at 31 December 2008) Vacant – Chairperson Joneen Scott – Deputy Chairperson Member Fiona Grierson – Member Anita Grace – Member Shane Seers – Member Kirk Lenton – Member Laurie Dalton – Member Murray Smalpage – Member Isabelle Ellis – Member Stephen Webster – Member Dr Barry McKnight – Member and Managing Director, Pilbara TAFE

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PILBARA TAFE MANAGEMENT STRUCTURE as at December 2008

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2004 - 2008 STRATEGIC PLAN OVERVIEW Key Objectives Skilled Workforce To support the growth and strengthening of a skilled Pilbara workforce through the provision of industry-aligned vocational and training products and services that lead to employment outcomes. Regional Development and Community Capacity Building To contribute to effective development of Pilbara communities through the provision of vocational education and training and other services which foster economic growth and development, promote diversity and support community capacity building. Organisational Development To optimise the quality and opportunities provided by Pilbara TAFE’s vocational education and training services and products through the use of effective and efficient strategies for the acquisition and management of its human, financial and physical resources. Priorities and Strategies for Success

• Flexible Delivery – Provide flexibility in the delivery of training to expand choice of when, where and how clients access training.

• Product and Services Development – Deliver quality VET products and services and increase the range of qualifications offered resulting in growth in student contact hours.

• Industry and Community Partnerships – Build collaborative partnerships with industry and the community to ensure client needs are met.

• Indigenous Education and Training – Improve Indigenous training to build skills, enhance employment opportunities and build our national reputation to become a centre of excellence.

• Multi- Sectoral Collaboration – Promote learning pathways and relationships with other educational sectors.

• International Collaboration – Form partnerships and investigate opportunities to provide training to leading VET institutions overseas.

• Career and Professional Development – Develop a positive working environment and provide opportunities for staff to develop the knowledge, skills and attitudes the need for their own professional and career development

• Business Systems Development – Develop and implement business systems that support the effective and efficient delivery of the college’s services.

• Client Support Services – Develop a strong level of client focus for both internal and external clients.

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AGENCY PERFORMANCE STATE TRAINING PRIORITIES The State Training Priorities are developed through extensive consultation, validation, feedback and negotiation with stakeholders throughout Western Australia, including industry and enterprises; Industry Training Advisory groups; Regional and community organisations; Equity groups; Training providers; and Government agencies. The priorities for VET within the education and training arrangements focus on developing a high quality system of lifelong learning which encourages and facilitates the engagement of individuals, communities and industry.

STATE TRAINING PRIORITIES VS AGENCY PERFORMANCE

PARTICIPATION OF 15-24 YR OLDS IN TRAINING, EDUCATION & EMPLOYMENT

• Continuation of VET in Schools in conjunction with local Government and Independent Schools (local, regional and remote) to offer a wide variety of targeted VET options to meet locally identified training needs

• Liaison with DET Regional Office and schools to ensure programs are targeted to the needs of the clients through participation in the Pilbara VET Cluster and the Pilbara Education and Training Participation Plan (ETPP).

• Partnership with the Australian Technical College (ATC). Pilbara continues to develop with ATC an additional pathway for Years 11/12 to complete their WACE with VET options and engage in school-based apprenticeships. 2008 saw the completion of the first year of preparation and engagement of students, which has resulted in 11 school-based apprentices.

LITERACY AND NUMERACY • Additional assistance for disengaged and indigenous students via

provision of literacy/ numeracy support, and mentoring for general VET programs.

• An increase in delivering specialised programs to address literacy and numeracy issues among client groups. These have been ‘stand-alone’ programs like Gaining Access to Employment and Training (GATE) and literacy/numeracy support for many programs including apprenticeships via the Course in Applied Vocational Study Skills (CAVSS).

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INDIGENOUS TRAINING • Wider range of ‘work ready’ programs at many locations usually in

partnership with a major resource/mining partner. (See industry partnerships)

• Increase in the numbers of Indigenous students completing a range of Certificate III programs

APPRENTICESHIPS & TRADES TRAINING • 352 new commencements in apprenticeships and trainees during 2008

LOCAL PARTICIPATION IN EMPLOYMENT OPPORTUNITIES

INDUSTRY PARTNERSHIPS Workstart/Work Ready programs with various resource/mining groups including:

Rio Tinto/Roebourne Regional Prison Newcrest/Telfer mine site Ngarda Rio Tinto/Dept of Conservation and Environment Mining contractors – HWE, McMahons Pilbara Iron – apprenticeship delivery Pirakara Mining Academy/BHP Billiton – Yarrie mine site FMG –Civil Construction, Horticulture, Industrial skills and

Plant Operation Rio Tinto/Ashburton CDEP – Nullagine and Onslow Global Gypsies - Tourism training Scholarships sponsored by industry and local

government to support delivery in Children’s Services qualifications across several Pilbara TAFE campuses.

The Walkington Theatre continues to flourish as a partnership between Pilbara TAFE and the Shire of Roebourne. In 2008, the Theatre held three major conferences, a week long performing arts festival, a Pilbara-wide comedy tour and screened a range of movies. Woodside have lent their support by sponsoring the outdoor theatre, now called the Woodside Moonrise Cinema, while the Pilbara Development Commission has donated significant funds to allow a major technical upgrade to the facilities.

INDIGENOUS ECONOMIC DEVELOPMENT • Ongoing relationship with key Indigenous organisations and

communities within the Pilbara such as Ashburton Aboriginal Corporation, Bloodwood Tree Association

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AGENCY KEY PRIORITIES

Increase number of apprentices and trainees in training • Apprentice numbers peaked late 2007/early 2008. Delivery has been

limited by the availability/recruitment of lecturing staff, equipment and workshop space. This has seen the creation of some ‘waiting lists’ in some industry areas.

• Increased numbers in Hairdressing were a result of a targeted promotional campaign across the Pilbara and adjacent regions of Kimberley and Gascoyne.

Increase qualification completions in courses at Diploma level and above • Increasing completions in higher level courses has been very

challenging for the college in an era of maximum employment and industry growth, particularly in the major multinational resource industries. The Pilbara economy continues to lead Australia’s production boom. The structure of the Pilbara workforce is such that many workers face twelve hour shifts, often for six days each week. TAFE clients are therefore not focused on training outcomes but more on those connected to industry performance and production. This has resulted in a slight decline in participation and completion rates.

Develop innovative partnerships to increase productivity • Ongoing liaison with key industry partners in the mining/resource

sector continues to develop partnerships at the entry-level market, specifically for Indigenous clients, with a number of ‘work ready’ programs being negotiated with BHP, Fortescue Metals Group, Rio Tinto, Woodside, and Newcrest.

• In addition to the many partnership arrangements listed previously, Pilbara TAFE’s Pundulmurra and Minurmarghali Mia (Roebourne) campuses provide a range of traineeship programs across several industry areas, as well as specialist short training programs such as plant operation in remote communities.

• Development of new niche markets with organisations like Global Gypsies and William Angliss Institute of TAFE (Vic) has improved flexible options for the tourism and hospitality industry.

Increase the retention of Indigenous students into Years 11 & 12 by December 2008 • Special focused programs for local and remote high school students

including School Apprenticeship Link programs in Building and Construction, and Automotive

• Targeted VET in Schools programs in Metals, Children’s Services, Community Services

• Support for remote indigenous schools

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SIGNIFICANT ISSUES AND TRENDS FACTORS AFFECTING DELIVERY:

• Strong employment conditions have impacted on the College’s ability to retain lecturing staff who are continually being lured into better employment conditions, especially remuneration, by the multi-national resource companies.

• Recruitment is also posing similar problems whereby the TAFEWA Lecturer’s Agreement is not competitive with local Pilbara employment conditions.

• High numbers of apprentices have put additional pressure on workshop space, lecturer availability, and programming.

GOVERNANCE DISCLOSURES ENABLING LEGISLATION Pilbara TAFE was established as an autonomous body on 1 July 1999 under Section 35 of the Vocational Education and Training Act 1996.

ADVERTISING

Electoral ACT 1907 In accordance with Section 175ZE of the Electoral Act 1907, the following expenditures were incurred by or on behalf of the College as shown in the table below. The College spent $213,394 (an increase of $17,155 or 8.7% on 2007) on advertising. The breakdown is as follows:

Class of Organisation Total Expenditure Breakdown

Advertising agencies $108,205

Promotional Material – Production, Design $5,038 Promotional Items / Displays $7,506 Campaign Advertising – TV $19,190

Campaign Advertising – Radio $22,755 Campaign Advertising – Press $44,419

Advertising – Courses $9,297

Staff Advertising $105,189 Advertising – Staff Vacancies $99,006

North West Telegraph - $4,660 Pilbara News - $1,523

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DISABILITY ACCESS & INCLUSION PLAN OUTCOMES COMPLIANCE REPORT Pilbara TAFE has continued to encourage and promote VET courses to students and prospective students with a disability, throughout the Pilbara. Requests for support of specific students’ needs have been met promptly with the allocation of additional resources including specialised computer software to assist people with speech disabilities to communicate, and print scanning equipment Information published by Pilbara TAFE is available in alternate formats and the Pilbara TAFE website conforms to modern web standards as per the Web Standards Project (W3C). Pilbara TAFE staff members are aware of the needs of people with a disability, and reasonable adjustments have included re-locating classrooms to prevent some students being precluded from participating in classes in certain areas and submitting an application to fund modifications for the improvement of access for disabled students at one of our campuses. All campus maps in client information guides and websites have been updated to indicate disability access and support facilities and Pilbara TAFE has ensured that all new buildings provide access for people with disabilities where practicable and disabled parking bays have been clearly identified. Where reception desks and counters do not have access for people with disabilities, alternatives such as suitable tables are provided in foyer areas. Students with a disability have been accommodated into classrooms, any additional needs or resources identified promptly and with the availability of funding their needs have been met. Student’s comfort and safety have also been taken into consideration with the redesigning of classrooms and space where necessary. Pilbara TAFE has ensured that all staff members have open access to the Disability Access and Inclusion Plan by publishing it on the Staff Intranet and Pilbara TAFE website. Pilbara TAFE’s Grievance policy is available for students to lodge a complaint. Additional assistance for the student by way of a specialist or community advocate is permissible within the complaints process. The students with a disability who have attended Pilbara TAFE throughout 2008 have included students with an intellectual disability, physical disability, and learning disability, mental and sensory disabilities.

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COMPLIANCE WITH PUBLIC SECTOR STANDARDS AND ETHICAL CODES The College is committed to ensuring its processes comply with the Human Resource Management Standards of the Public Sector Standards Commission. Compliance with Public Sector Management Act Section 31(1) In the administration of the Pilbara TAFE, I have complied with the Public Sector Standards in Human Resource Management, the Western Australian Public Sector Code of Ethics and the College’s Code of Conduct. I have put in place procedures designed to ensure such compliance and conducted appropriate internal assessments to satisfy myself that the statement made in 1. is correct. The Applications made for Breach of Standards Review and the corresponding outcomes for the reporting period are: Number lodged: 0 Number of breaches found, including details of multiple breaches per application: 0 Number still under review: 0 Dr Barry McKnight Managing Director

FREEDOM OF INFORMATION The College publishes a range of documents that provide information to staff and the community. Publications are available from the College and many are widely distributed to interested parties and the broader community. The College’s website is continually updated with an increasing amount of general information and documentation. Any member of the public wishing to access material under the Freedom of Information Act 1992 (FOI Act), may address requests to: Managing Director Pilbara TAFE PO Box 315 KARRATHA WA 6714 Telephone: 08 9159 6700 The College did not receive any applications under the auspices of the FOI Act during 2008.

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CONTRACTS WITH SENIOR OFFICERS At the date of reporting, other than normal contracts of employment, no Senior Officers, or firms of which Senior Officers are members, or entities in which Senior Officers have substantial interests had any interests in existing or proposed contracts with Pilbara TAFE.

RECORDKEEPING PLANS Pilbara TAFE is a signatory of the sector wide Recordkeeping Plan (RKP) which was submitted to the State Records Commission in March 2004 on behalf of the Department of Education and Training, the Curriculum Council, the Department of Education Services, the Public Education Endowment Trust and the TAFEWA Colleges. In accordance with this RKP, Pilbara TAFE has implemented the generic TAFEWA Thesaurus, Retention and Disposal Schedule (R&D) and a joint operating procedure manual within the College. Pilbara TAFE anticipates migrating to a new records management, TRIM Context 6R2, in 2009. In preparation of this move, the College has invested resources to ensure that appropriate records are archived and stored in compliance with the TAFEWA common retention and disposal schedule. At the same time, an informal evaluation of the College’s efficiency and effectiveness of the current recordkeeping system has been undertaken. Recordkeeping training was provided by the College’s Records Officer to staff with responsibility of archiving and storing records at South Hedland, Pundulmurra, Tom Price and Newman campuses. It is planned that extensive training will be conducted for all staff as part of the implementation of TRIM Context 6R2 in 2009. In 2008, Pilbara TAFE gained access to an online records awareness training program (RATS) which was purchased by the Department of Education and Training for the sector. It is planned to rollout this training program to all College staff in 2009. It is anticipated that an evaluation of the efficiency and effectiveness of the recordkeeping training programs will be conducted towards the end of 2009 after the implementation of TRIM Context 6R2. Pilbara TAFE have a number of policies and procedures regarding the responsibility of all staff to ensure that appropriate corporate records are captured and retained according to legislative requirements. After the implementation of TRIM Context 6R2, the current induction program will be updated to include this information.

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GOVERNMENT POLICY REQUIREMENTS CORRUPTION PREVENTION The College continued to work with other TAFEWA Colleges and the Department of Education and Training to further develop policies and procedures aimed at reducing the risk of corruption and crime in the Education Sector in Western Australia. During 2008, the College ensured that all new staff members secured criminal clearances prior to commencing work. In addition the College made sure that all staff who are required to have a Working with Children Check, have completed the necessary arrangements. Pilbara TAFE continues to promote and provide opportunities for staff to increase their understanding of issues such as Corruption Prevention in accordance with legislative requirements. Pilbara TAFE continues to provide up to date information to our staff on Public Interest Disclosures (PID) as well as adjusting our policies to ensure compliance. Staff members are also aware of the appointed PID Officers, should they wish to contact them if they have a query or if they would like to lodge a PID.

SUSTAINABILITY Pilbara TAFE is committed to ensuring that the College embraces the principles of sustainability in all its activities and educates its staff on the importance of contributing to sustainability on an ongoing basis. The three key elements of sustainability include:

• Social sustainability – contribution to developing social capital and capacity building.

• Economic Sustainability – elements of organisational and financial sustainability.

• Environmental sustainability – responsiveness to energy efficiency, water conservation and waste minimisation.

These three elements strongly contribute to the College’s Strategic Planning Framework.

The College’s Sustainability Action Plan, which details actions to be addressed in achieving successful sustainability outcomes, is reviewed and updated annually and will, subject to available resources, identify new areas of activity and enhance existing actions. The College has achieved the following outcomes in relation to its support of implementing Sustainability principles:

• Development the Sustainability Strategic Action Plan for Pilbara TAFE • Sustainability principles incorporated into our procurement practices

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• Strategic Planning Framework identifies Sustainability as a key goal for the organisation.

• A College Sustainability Committee has been established to manage and monitor sustainability activities within the College.

• Development and delivery of training programs and courses which focus on or relate to environmental, social and economic sustainability.

• Involvement in cross-sectoral (Government & Private) service provision; resource sharing; collaborative initiatives; and strategic alliances with industry.

• Energy Management Plan on target to achieve energy smart milestones.

• The Occupational Safety and Health Steering Committee supports sustainability actions in the areas of:

- Environment – for example hazardous chemical handling; - Economic – minimises Riskcover premiums by reducing

potential claims; - Social – minimises accidents or harm to individuals.

OCCUPATIONAL SAFETY AND HEALTH

Pilbara TAFE is committed to creating and maintaining a safe and healthy working environment for staff, clients and members of the public and to maximise opportunities for continuous improvement in safety performance.

The College is committed to preventing occupational injury and illness through the provision of a safe and healthy work environment

Pilbara TAFE utilises Occupational Health & Safety Representatives, Local OSH Committees and an Executive OSH Committee to provide a forum for the discussion of safety and health policies and practices. It recommends measures to promote the safety and health of staff, students and visitors at the college. Minutes for meetings are available to all employees via the Pilbara TAFE intranet.

Summary of statistics for 2008

Number of fatalities 0Lost time injury/diseases (LTI/D) incidence rate 0Lost time injury severity rate 0

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PILBARA TAFE

FINANCIAL STATEMENTS

FOR

YEAR ENDED 31 DECEMBER 2008

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Auditor General

Page 1 of 2

4th Floor Dumas House 2 Havelock Street West Perth 6005 Western Australia Tel: 08 9222 7500 Fax: 08 9322 5664

INDEPENDENT AUDIT OPINION To the Parliament of Western Australia PILBARA TAFE FINANCIAL STATEMENTS AND KEY PERFORMANCE INDICATORS FOR THE YEAR ENDED 31 DECEMBER 2008 I have audited the accounts, financial statements, controls and key performance indicators of the Pilbara TAFE. The financial statements comprise the Balance Sheet as at 31 December 2008, and the Income Statement, Statement of Changes in Equity and Cash Flow Statement for the year then ended, a summary of significant accounting policies and other explanatory Notes. The key performance indicators consist of key indicators of effectiveness and efficiency. Governing Council’s Responsibility for the Financial Statements and Key Performance Indicators The Governing Council is responsible for keeping proper accounts, and the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Treasurer’s Instructions, and the key performance indicators. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial statements and key performance indicators that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; making accounting estimates that are reasonable in the circumstances; and complying with the Financial Management Act 2006 and other relevant written law. Summary of my Role As required by the Auditor General Act 2006, my responsibility is to express an opinion on the financial statements, controls and key performance indicators based on my audit. This was done by testing selected samples of the audit evidence. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Further information on my audit approach is provided in my audit practice statement. Refer "http://www.audit.wa.gov.au/pubs/Audit-Practice-Statement.pdf". An audit does not guarantee that every amount and disclosure in the financial statements and key performance indicators is error free. The term “reasonable assurance” recognises that an audit does not examine all evidence and every transaction. However, my audit procedures should identify errors or omissions significant enough to adversely affect the decisions of users of the financial statements and key performance indicators.

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Pilbara TAFE Financial Statements and Key Performance Indicators for the year ended 31 December 2008 Audit Opinion In my opinion,

(i) the financial statements are based on proper accounts and present fairly the financial position of the Pilbara TAFE at 31 December 2008 and its financial performance and cash flows for the year ended on that date. They are in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Treasurer’s Instructions;

(ii) the controls exercised by the College provide reasonable assurance that the receipt, expenditure and investment of money, the acquisition and disposal of property, and the incurring of liabilities have been in accordance with legislative provisions; and

(iii) the key performance indicators of the College are relevant and appropriate to help users assess the College’s performance and fairly represent the indicated performance for the year ended 31 December 2008.

COLIN MURPHY AUDITOR GENERAL 23 March 2009

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INCOME STATEMENT 2008 2007FOR THE YEAR ENDED 31 DECEMBER 2008

Notes $ $COST OF SERVICESExpensesEmployee benefits expense 6 22,172,232 19,261,328 Supplies and services 7 9,506,908 9,027,247 Depreciation and amortisation expense 8 1,645,913 1,493,134 Finance costs 9 45,456 45,546 Grants and subsidies 10 8,171 - Capital user charge 11 - 1,704,127 Cost of sales 16 98,389 116,603 Other expenses 12 2,074,358 1,282,200 Total cost of services 35,551,427 32,930,185

IncomeRevenueFee for service 13 1,117,408 1,074,100 Student fees and charges 14 1,920,414 1,609,981 Ancillary trading 15 138,889 68,597 Sales 16 435,576 375,385 Commonwealth grants and contributions 17 274,510 56,251 Interest revenue 18 257,741 318,939 Other revenue 19 3,442,561 3,830,346 Total revenue 7,587,099 7,333,599

GainsGain on disposal of non-current assets 20 550 2,012 Other gains - - Total gains 550 2,012

Total income other than income from State Government 7,587,649 7,335,611

NET COST OF SERVICES (27,963,778) (25,594,574)

INCOME FROM STATE GOVERNMENT 21Service Appropriation 25,463,554 23,979,976 Resources received free of charge 797,291 751,760 Total income from State Government 26,260,845 24,731,736

(1,702,933) (862,838)

The Income Statement should be read in conjunction with the accompanying notes.

PILBARA TAFE

DEFICIT FOR THE PERIOD

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PILBARA TAFEBALANCE SHEETAS AT 31 DECEMBER 2008 2008 2007

Notes $ $ASSETSCurrent Assets Cash and cash equivalents 34 2,539,465 3,535,972 Restricted cash and cash equivalents 22,34 199,253 141,849 Inventories 23 57,512 73,158 Receivables 24 1,394,493 1,812,976 Other current assets 25 336,111 339,011 Total Current Assets 4,526,834 5,902,966

Non-Current Assets Receivables 24 - - Property, plant and equipment 26 115,350,266 66,009,295 Intangible assets 27 - 35,670 Total Non-Current Assets 115,350,266 66,044,965

TOTAL ASSETS 119,877,100 71,947,931

LIABILITIESCurrent LiabilitiesPayables 29 884,513 1,094,974 Borrowings 30 68,846 66,860 Provisions 31 1,503,701 1,345,442 Other current liabilities 32 350,670 924,432 Total Current Liabilities 2,807,730 3,431,708

Non-Current LiabilitiesPayables 29 - - Borrowings 30 570,595 640,181 Provisions 31 837,796 611,768 Other non-current liabilities 32 - - Total Non-Current Liabilities 1,408,391 1,251,949

TOTAL LIABILITIES 4,216,121 4,683,657

NET ASSETS 115,660,979 67,264,275

EQUITYContributed equity 33 28,231,057 27,702,097 Reserves 82,959,955 33,389,278 Accumulated surplus 4,469,967 6,172,900

TOTAL EQUITY 115,660,979 67,264,275

The Balance Sheet should be read in conjunction with the accompanying notes.

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PILBARA TAFESTATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 31 DECEMBER 2008 2008 2007

Notes $ $Balance of equity at start of period 67,264,274 40,592,491

CONTRIBUTED EQUITY 33Balance at start of period 27,702,097 27,702,097 Capital contributions 528,960 - Other contributions by owners - - Distributions to owners - - Balance at end of period 28,231,057 27,702,097

RESERVES 33Asset Revaluation ReserveBalance at start of period 33,197,669 5,375,961 Restated balance at start of period 33,197,669 5,375,961 Gains/(losses) from asset revaluation 49,570,680 27,821,711 Balance at end of period 82,768,349 33,197,672

Other ReservesBalance at start of period 191,606 191,606 Transfer from/(to) accumulated surplus - - Other adjustments during the year - - Balance at end of period 191,606 191,606

ACCUMULATED SURPLUS 33Balance at start of period 6,172,900 8,418,715 Change in accounting policy or correction of prior period errors - (1,382,977) Restated balance at start of period 6,172,900 7,035,738 Surplus/(deficit) for the period (1,702,933) (862,838) Gains/(losses) recognised directly in equity - - Balance at end of period 4,469,967 6,172,900

Balance of equity at end of period 115,660,978 67,264,275

Total income and expenses for the period (a) 47,867,747 26,958,873

(2007: deficit $862,838 plus gains from asset revaluation of $27,821,708).

The Statement of Changes in Equity should be read in conjunction with the accompanying notes.

(a) The aggregate net amount attributable to each category of equity is: deficit $1,702,933 plus gains from asset revaluation of $49,570,680.

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PILBARA TAFECASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2008 2008 2007

Notes $ $CASH FLOWS FROM STATE GOVERNMENTService Appropriation - Department of Education and Training 24,244,971 23,897,724 Capital Contributions - Department of Education and Training - - Net cash provided by State Government 24,244,971 23,897,724

Utilised as follows:CASH FLOWS FROM OPERATING ACTIVITIESPaymentsEmployee benefits (20,569,362) (18,391,046) Supplies and services (9,024,937) (8,338,785) Grants and subsidies (8,171) - Finance costs (45,456) (45,546) Capital user charge - (3,218,787) GST payments on purchases (1,052,690) (922,190) GST payments to taxation authority - - Other payments (2,961,205) (1,573,547)

ReceiptsFee for service 1,182,383 1,722,223 Student fees and charges 1,920,414 1,591,136 Ancillary trading 138,889 304,000 Commonwealth grants and contributions 274,510 56,251 Interest received 257,741 296,224 GST receipts on sales 313,302 271,570 GST receipts from taxation authority 629,837 705,331 Other receipts 3,878,137 3,321,828 Net cash provided by used in operating activities 34 (25,066,608) (24,221,338)

CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sale of non-current physical assets 550 2,012 Purchase of non-current physical assets (50,417) (540,394) Net cash provided by used in investing activities (49,867) (538,382)

CASH FLOWS FROM FINANCING ACTIVITIES Finance lease repayment of principal - - Proceeds from borrowings - - Repayment of borrowings (67,600) (65,489) Other proceeds - - Other repayments - - Net cash provided by used in financing activities (67,600) (65,489)

Net decrease in cash and cash equivalents (939,104) (927,485)

Cash and cash equivalents at begining of period 3,677,821 4,605,306 CASH AND CASH EQUIVALENTS AT END OF PERIOD 34 2,738,717 3,677,821

The Cash Flow Statement should be read in conjunction with the accompanying notes.

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PILBARA TAFENOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2008

1 Australian equivalents to International Financial Reporting Standards

(a) General The College's financial statements for the year ended 31 December 2008 have been prepared in accordance with Australian equivalents to International Financial Reporting Standards (AIFRS) which comprise a Framework for the Preparation and Presentation of Financial Statements (the Framework) and Australian Accounting Standards (including the Australian Accounting Intepretations).

In preparing these financial statements the College has adopted, where relevant to its operations, new and revised standards and interpretations from their operative dates as issued by the Australian Accounting Standards Board (AASB) and formerly the Urgent Issues Group (UIG).

(b) Early adoption of standardsThe College cannot early adopt an Australian Accounting Standard or Australian Accounting Interpretation unless specifically permitted by Treasurer'sInstruction (TI) 1101 'Application of Australian Accounting Standards and Other Pronouncements'. No standards and interpretations that have been issued or amended but are not yet effective have been early adopted by the College for the annual reporting period ended 31 December 2008.

2 Summary of significant accounting policies

(a) General statementThe financial statements constitute a general purpose financial report which has been prepared in accordance with the Australian Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the AASB as applied by the TIs. Several of these are modified by the TIs to vary application, disclosure, format and wording.

The Financial Management Act and the TIs are legislative provisions governing the preparation of financial statements and take precedence over theAccounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the AASB.

Where modification is required and has a material or significant financial effect upon the reported results, details of that modification and the resultingfinancial effect are disclosed in the notes to the financial statements.

(b) Basis of preparationThe financial statements have been prepared on the accrual basis of accounting using the historical cost convention, except for certain assets and liabilities which are measured at fair value.

The accounting policies adopted in the preparation of the financial statements have been consistently applied throughout all periods presented unless otherwise stated.

The financial statements are presented in Australian dollars and all values are rounded to the nearest dollar ($).

The judgements that have been made in the process of applying the College’s accounting policies that have the most significant effect on the amounts recognised in the financial statements are disclosed at note 3 ‘Judgements made by management in applying accounting policies’.

The key assumptions made concerning the future, and other key sources of estimation uncertainty at the balance sheet date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are disclosed at note 4 ‘Key sources of estimation uncertainty’.

(c) Reporting entityThe reporting entity comprises the College and entities listed at note 42 ‘Related bodies’.

(d) Contributed equityUIG Interpretation 1038 ‘Contributions by Owners Made to Wholly-Owned Public Sector Entities’ requires transfers in the nature of equity contributions to be designated by the Government (the owner) as contributions by owners (at the time of, or prior to, transfer) before such transfers can be recognised as equity contributions. Capital contributions (appropriations) are designated as contributions by owners per TI 955 'Contributions by Owners Made to WhollyOwned Public Sector Entities' and have been credited directly to Contributed Equity.

Transfer of net assets to/from other agencies are designated as contributions by/distributions to owners to where the transfers are non-discretionary and non-reciprocal. See note 33 'Equity'.

Repayable capital appropriations are recognised as liabilities.

(e) IncomeRevenue recognitionRevenue is measured at the fair value of consideration received or receivable.

The majority of operating revenue of the College represents revenue earned from student fees and charges, fee for service, ancillary services, tradingactivities and Commonwealth grants and contributions.

Sale of goodsRevenue is recognised from the sale of goods and disposal of other assets when the significant risks and rewards of ownership control transfer to the purchaser and can be measured reliably.

Rendering of servicesRevenue is recognised on delivery of the service to the client or by reference to the stage of completion of the transaction.

InterestRevenue is recognised as the interest accrues.

24


Grants, donations, gifts and other non-reciprocal contributionsRevenue is recognised at fair value when the College obtains control over the assets comprising the contributions, usually upon their receipt.

Other non-reciprocal contributions that are not contributions by owners are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated.

Where contributions recognised as revenues during the reporting period were obtained on the condition that they be expended in a particular manner or usedover a particular period, and those conditions were undischarged as at the balance sheet date, the nature of, and amounts pertaining to, those undischargedconditions are disclosed in the notes.

State fundsThe funds received from the Department of Education and Training in respect of the delivery of services forming part of the Delivery Performance Agreement are included in State funds, disclosed under 'Income from State Government'. They are the result of training successfully tendered for under competitive tendering arrangements. This revenue is recognised at nominal value in the period in which the College meets the terms of the Agreement. See note 21 'Income from State Government'.

GainsGains may be realised or unrealised and are usually recognised on a net basis. These include gains arising on the disposal of non-current assets and some revaluations of non-current assets.

(f) Borrowing costsBorrowing costs for qualifying assets are capitalised net of any investment income earned on the unexpended portion of the borrowings. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Other borrowing costs are expensed when incurred.

(g) Property, plant and equipmentCapitalisation/Expensing of assetsItems of property, plant and equipment costing $5,000 or more are recognised as assets and the cost of utilising assets is expensed (depreciated) over their useful lives. Items of property, plant and equipment costing less than $5,000 are recognised as an expense in the Income Statement (other than where theyform part of a group of similar items which are significant in total).

Initial recognition and measurementAll items of property, plant and equipment and infrastructure are initially recognised at cost. For items of property, plant and equipment and infrastructure acquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition.

Subsequent measurement

Where market-based evidence is available, the fair value of land and buildings is determined on the basis of current market buying values determined byreference to recent market transactions . When buildings are revalued by reference to recent market transactions, the accumulated depreciation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount.

Where market-based evidence is not available, the fair value of land and buildings is determined on the basis of existing use. This normally applies wherebuildings are specialised or where land use is restricted. Fair value for existing use assets is determined by reference to the cost of replacing the remaining future economic benefits embodied in the asset, i.e. the depreciated replacement cost. Where the fair value of buildings is dependent on using the depreciated replacement cost, the gross carrying amount and the accumulated depreciation are restricted proportionately.

Independent valuations of land and buildings are provided annually by the Western Australian Land Information Authority (Landgate) and recognised withsufficient regularity to ensure that the carrying amount does not differ materially from the asset's fair value at the balance sheet date.

The most significant assumptions in estimating fair value are made in assessing whether to apply the existing use basis to assets and in determiningestimated useful life. Professional judgement by the valuer is required where the evidence does not provide a clear distinction between market type assetsand existing use assets. Refer to note 26 'Property, plant and equipment' for further information on revaluations.

De-recognitionUpon disposal or derecognition of an item of property, plant and equipment, any revaluation reserve relating to that asset is retained in the assetrevaluation reserve.

Asset Revaluation ReserveThe asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets as described in note 26(Property, Plant and Equipment).

DepreciationAll non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in a manner which reflects the consumptionof their future economic benefits.

Land is not depreciated. Depreciation on other assets is based on the straight line method over its useful life, using rates which are reviewed annually. Estimated useful lives for each class of depreciable asset are:Buildings 2 to 95 yearsMotor vehicles, caravans and trailers 4 to 23 yearsPlant, furniture and general equipment 4 to 28 yearsComputing, communications and software (a) 1 to 15 yearsMarine craft 8 to 19 years

(a) Software that is integral to the operation of related hardware.

After recognition as an asset, the revaluation model is used for the measurement of land and buildings and the cost model for equipment. Land and buildings are carried at fair value less accumulated depreciation on buildings and accumulated property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses.

25


(h) Intangible assetsCapitalisation/Expensing of assetsAcquisitions of intangible assets costing $5,000 or more and internally generated intangible assets costing $5,000 or more, are capitalised. The cost of utilising theassets is expensed (amortised) over their useful life. Costs incurred below these thresholds are recognised as an expense in the Income Statement.

All acquired and internally developed intangible assets are initially recognised at cost. For assets acquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition.

The cost model is applied for subsequent measurement requiring the asset to be carried at cost less any accumulated amortisation and accumulatedimpairment losses.

Amortisation for intangible assets with finite useful lives is calculated for the period of the expected benefit (estimated useful life) on the straight line basisusing rates which are reviewed annually. All intangible assets controlled by the College have a finite useful life and zero residual value. The expected useful lives for each class of intangible asset are:Licences up to 6 yearsSoftware (a) 2 to 6 yearsWeb site costs 2 to 6 years

(a) Software that is not integral to the operation of any related hardware.

LicencesLicences have a finite useful life and are carried at cost less accumulated amortisation and accumulated impairment losses.

Computer softwareSoftware that is an integral part of the related hardware is treated as property, plant and equipment. Software that is not an integral part of the related hardware is treated as an intangible asset. Software costing less than $5,000 is expensed in the year of acquisition.

Web site costs Web site costs are charged as expenses when they are incurred unless they relate to the acquisition or development of an asset when they may be capitalisedand amortised. Generally, costs in relation to feasibility studies during the planning phase of a website, and ongoing costs of maintenance during theoperating phase are expensed. Costs incurred in building or enhancing a web site, to the extent that they represent probable future economic benefits that can be reliably measured, are capitalised.

(i) Impairment of assetsProperty, plant and equipment, and intangible assets are tested for any indication of impairment at each balance sheet date. Where there is an indication ofimpairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is considered impaired and iswritten down to the recoverable amount and an impairment loss is recognised. As the College is a not-for-profit entity, unless an asset has been identifiedas a surplus asset, the recoverable amount is the higher of an asset’s fair value less costs to sell and depreciated replacement cost.

The risk of impairment is generally limited to circumstances where an asset’s depreciation is materially understated, where the replacement cost is falling or where there is a significant change in useful life.

Each relevant class of assets is reviewed annually to verify that the accumulated depreciation/amortisation reflects the level of consumption or expiration of assets' future economic benefits and to evaluate any impairment risk from falling replacement costs or a significant change in useful life.

Intangible assets not yet available for use are tested for impairment at each balance sheet date irrespective of whether there is any indication of impairment.

The recoverable amount of assets identified as surplus assets is the higher of fair value less costs to sell and the present value of future cash flows expected to be derived from the asset. Surplus assets carried at fair value have no risk of material impairment where fair value is determined by referenceto market-based evidence. Where fair value is determined by reference to depreciated replacement cost, surplus assets are at risk of impairment and the recoverable amount is measured.

See note 28 ‘Impairment of assets’ for the outcome of impairment reviews and testing. See note 2(p) 'Receivables' and note 24 'Receivables' for impairment of receivables.

(k) LeasesAt the commencement of the lease term, finance lease rights and obligations are recognised as assets and liabilities equal in amount to the fair value of the leased item or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease. The assets are disclosed as plant, equipment and vehicles under lease and are depreciated over the period during which the College is expected to benefit from their use. Minimum lease payments are apportioned between finance charge and reduction of the outstanding lease liability, according to the interest rate implicit in the lease.

The College has entered into operating lease arrangements for motor vehicle fleets and Multifunction Devices (MFD's). Lease payments are expensed on a straight line basis over the lease term as this represents the pattern of benefits derived from the leased assets.

(l) Financial instrumentsIn addition to cash, the College has two categories of financial instrucments:• loans and receivables; and• financial liabilities measured at amortised cost

These have been disaggregated into the following classes:

Financial assets• cash and cash equivalents (including restricted cash and cash equivalents)• receivables• term deposits

Financial liabilities• payables• borrowings (WATC Loan)• finance leases

26


Initial recognition and measurement of financial instruments is at fair value. Usually the transaction cost or face value is equivalent to fair value and sub-sequent measurement is at amortised cost using the effective interest method.

The fair value of short-term receivables and payables is the transaction cost or the face value because there is no interest rate applicable and subsequent measurement is not required as the effect of discounting is not material.

(m) Cash and cash equivalentsFor the purpose of the Cash Flow Statement, cash and cash equivalents include restricted cash and cash equivalents. These are comprised of cash on handand short-term deposits with original maturities of three months or less that are readily convertible to a known amount of cash and which are subject toinsignificant risk of changes in value.

(n) Accrued salariesThe accrued salaries suspense account (see note 22 'Restricted cash and cash equivalents' consists of amounts paid annually into a suspense account over a period of ten financial years to largely meet the additional cash outlay in each eleventh year when 27 pay days occur instead of the normal 26.No interest is received on this account.

Accrued salaries (see note 29 'Payables') represent the amount due to staff but unpaid at the end of the financial year, as the end of the last pay period for that financial year does not coincide with the end of the financial year. Accrued salaries are settled within a fortnight of the financial year end. The College considers the carrying amount of accrued salaries to be equivalent to its net fair value.

(o) InventoriesInventories are measured at the lower of cost and net realisable value. Costs are assigned by the method most appropriate to each particular class of inventory, with the majority being valued on a first in first out basis.

Inventories not held for resale are valued at cost unless they are no longer required, in which case they are valued at net realisable value.

See note 23 'Inventories'.

(p) ReceivablesReceivables are recognised and carried at original invoice amount less an allowance for any uncollectible amounts (impairment). The collectability of receivables is reviewed on an ongoing basis and any receivables identified as uncollectible are written off against the allowance account. The provision for uncollectible amounts (doubtful debts) is raised when there is objective evidence that the College will not be able to collect the debts. The carrying amount is equivalent to fair value as it is due for settlement within 30 days. See note 2(l) ‘Financial instruments’ and note 24 ‘Receivables’.

(q) PayablesPayables are recognised at the amounts payable when the College becomes obliged to make future payments as a result of a purchase of assets or services. The carrying amount is equivalent to fair value, as they are generally settled within 30 days. See note 2(l) ‘Financial instruments’ and note 29 'Payables'.

(r) BorrowingsAll loans payable are initially recognised at cost, being the fair value of the net proceeds received. Subsequent measurement is at amortised cost using theeffective interest rate method. See note 2(l) ‘Financial instruments’ and note 30 ‘Borrowings’.

(s) ProvisionsProvisions are liabilities of uncertain timing and/or amount and are recognised where there is a present legal, equitable or constructive obligation as a resultof a past event and when the outflow of resources embodying economic benefits is probable and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each balance sheet date. See note 31 ‘Provisions’.

(i) Provisions - employee benefitsAnnual leave and long service leaveThe liability for annual and long service leave expected to be settled within twelve months after the balance sheet date is recognised and measured atthe undiscounted amounts expected to be paid when the liabilities are settled. Annual and long service leave expected to be settled more than twelvemonths after the balance sheet date is measured at the present value of amounts expected to be paid when the liabilities are settled. Leave liabilitiesare in respect of services provided by employees up to the balance sheet date.

When assessing expected future payments consideration is given to expected future wage and salary levels including non-salary components such as employer superannuation contributions. In addition, the long service leave liability also considers the experience of employee departures and periods of service.

The expected future payments are discounted using market yields at the balance sheet date on national government bonds with terms to maturity thatmatch, as closely as possible, the estimated future cash outflows.

A liability for long service leave is recognised after an employee has completed four years of service. An actuarial assessment of long service leave undertaken by Price Waterhouse Coopers Actuaries at 20 January 2009 determined that the liability measured using the short hand method was not materially different from the liability measured using the present value of expected future payments. The shorthand method is compliant with AASB 119 'Employee Benefits'.

All annual leave and unconditional long service leave provisions are classified as current liabilities as the College does not have an unconditional right todefer settlement of the liability for at least twelve months after the balance sheet date.

Superannuation Employees may contribute to the Pension Scheme, a defined benefit pension scheme now closed to new members or the Gold State Superannuation (GSS) Scheme, a defined benefit lump sum scheme also closed to new members. Both schemes are administered by the Government Employees Superannuation Scheme (GESB).

The College has no liabilities for superannuation charges under those schemes, as the liabilities for the unfunded Pension Scheme and the unfundedGSS Scheme transfer benefits due to members who transferred from the Pension Scheme, are assumed by the Treasurer. All other GSS Schemeobligations are funded by concurrent contributions made by the College to the GESB. The concurrently funded part of the GSS Scheme is a definedcontribution scheme as these contributions extinguish all liabilities in respect of the concurrently funded GSS Scheme obligations.

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Employees commencing employment prior to 16 April 2007 who were not members of either the Pension or the GSS Schemes became non-contributorymembers of the West State Superannuation (WSS) Scheme. Employees commencing employment on or after 16 April 2007 became members of the GESB Super (GESBS) Scheme. Both of these schemes are accumulation schemes. The College makes concurrent contributions to GESB on behalfof employees in compliance with the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992. These contributions ex-tinguish the liability for superannuation charges in respect of the WSS and GESBS Schemes.

The GESB makes all benefit payments in respect of the Pension Scheme and the GSS Scheme transfer benefits and is recouped by the Treasurer for the employer's share. See also note 2(t) 'Superannuation expense'.

(ii) Provisions - otherEmployment on-costs Employment on-costs, including workers’ compensation insurance, are not employee benefits and are recognised separately as expenses and liabilities when the employment, to which they relate, has occurred. Employment on-costs are included as part of 'Other expenses' and are not included as part of the College's 'Employee benefits expense’. The related liability is included in 'Employment on-costs provision'. (See note 12 'Other expenses' and note 31'Provisions'.)

(t) Superannuation expenseThe following elements are included in calculating the superannuation expense in the Income Statement:

(i) Defined benefit plansFor 2007, change in the unfunded employer’s liability (i.e. current service cost and actuarial gains and losses) assumed by the Treasurer in respect of currentemployees who are members of the Pension Scheme and current employees who accrued a benefit on transfer from that Scheme to the GSS Scheme;and

(ii) Defined contribution plansEmployer contributions paid to the GSS (concurrent contributions), the West State Superanuation Scheme (WSS), and the GESB Super Scheme (GESBS).

Defined benefit plans - for 2007, the movements (i. e. current service cost and actuarial gains and losses) in the liabilities in respect of the Pension Scheme and the GSS Scheme transfer benefits are recognised as expenses directly in the Income Statement. As these liabilities are assumed by the Treasurer (refer note 2(s)(i)), a revenue titled ‘Liabilities assumed by the Treasurer’ equivalent to the expense is recognised under ''Income from State Government' in the Income Statement (see note 21 'Income from State Government'). Commencing in 2008, the reporting of annual movements in thesenotional liabilities has been discontinued and is no longer recognised in the Income Statement.

The superannuation expense does not include payment of pensions to retirees, as this does not constitute part of the cost of services provided by the College in the current year.

The GSS Scheme is a defined benefit scheme for the purposes of employees and whole-of-government reporting. However, apart from the transfer benefit,it is a defined contribution plan for agency purposes because the concurrent contributions (defined contributions) made by the College to GESB ex-tinguish all of the College's obligations to the related superannuation liability.

(u) Resources received free of charge or for nominal costResources received free of charge or for nominal cost that can be reliably measured are recognised as income and as assets or expenses, as appropriate,at fair value.

(v) Comparative figuresComparative figures are, where appropriate, reclassified to be comparable with the figures presented in the current financial year.

3 Judgements made by management in applying accounting policies

The judgements that have been made in the process of applying accounting policies that have a significant effect on the amounts recognised in the financialstatements include:

Operating Lease CommitmentsThe College has entered into a commercial lease and has determined that the lessor retains all the significant risks and rewards of ownership of the property. Accordingly, the lease has been classified as an operating lease.

4 Key sources of estimation uncertainty

The key assumptions made concerning the future, and other key sources of estimation uncertainty at the reporting date that have a significant risk ofcausing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

Student Receivables:Student Receivables under 120 days is considered collectable and a provision is made for those greater than 120 days on the following basis:

Raised in the current financial year, ≤$100 debt, written off after the 3rd reminder letter (GC Resolution 5/2007)Raised in the current financial year 70% of the tatal value of >120 day debtRaised in the previous financial year 85% of the total value of >120 day debtRaised in the previous two or more financial years 100% of the total value of >120 day debt

General receivables from other government agencies are considered risk free, no provision is made an all others are by individual assessment witha provision to the full value if required.

Inventory stocks (bookshop) are ordered on a just in time basis to match current year teaching requirements. Obsolescence is considered to be lessthan 5% of the annual trading purchases and therefore no provision is made.

The College values its Land and Building every year.

No provision has been made for sick leave as the College annual costs do no exceed the annual value of entitlements.

Included in Current Liabilities is a value refundable to the Department of Education and Training for under delivery in its training programs.An estimate has been made based on student information held at the year end with final results determined by the Department the following year.

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5 Disclosure of changes in accounting policy and estimates

Initial application of an Australian Accounting StandardThe College has not applied any new Australian Accounting Standards and Australian Accounting Interpretations effective for annual reporting periods beginning on or after 1 January 2008 as they have no financial impact on the college.

Voluntary changes in accounting policyNo voluntary changes in accounting policy exists.

Future impact of Australian Accounting Standards not yet operative The College cannot early adopt an Australian Accounting Standard or Australian Accounting Interpretation unless specifically permitted by TI 1101 'Applicationof Australian Accounting Standards and Other Pronoucements'. Consequently, the College has not applied early the following Australian Accounting Standardsand Australian Accounting Interpretations that have been issued and which may impact the college but are not yet effective. Where applicable, the college plans to apply these Standards and Interpretations from their application date:

1. AASB 101 'Presentation of Financial Statements'. This Standard has been revised and will change the structure of the financial statements. These changeswill require that owner changes in equity are presented separately from non-owner changes in equity. The College does not expect any financial impact whenthe Standard is first applied. The Standard is required to be applied to annual reporting periods beginning on or after 1 January 2009.

2. Review of AAS 27 ‘Financial Reporting by Local Governments’, 29 ‘Financial Reporting by Government Departments’ and 31 ’Financial Reporting by Governments’. The AASB has made the following pronouncements from its short term review of AAS 27, AAS 29 and AAS 31:

AASB 1004 ‘Contributions’ (December 2007). Required to be applied to annual reporting periods beginning on or after 1 July 2008.

AASB 1050 ‘Administered Items’ (December 2007). Required to be applied to annual reporting periods beginning on or after 1 July 2008.

AASB 1051 ’Land Under Roads’ (December 2007). Required to be applied to annual reporting periods beginning on or after 1 July 2008.

AASB 1052 ‘Disaggregated Disclosures’ (December 2007). Required to be applied to annual reporting periods beginning on or after 1 July 2008.

AASB 2007-9 ‘Amendments to Australian Accounting Standards arising from the review of AASs 27, 29 and 31 [AASB 3, AASB 5, AASB 8, AASB 101, AASB 114, AASB 116, AASB 127 & AASB 137] (December 2007). Required to be applied to annual reporting periods beginning on or after 1 July 2008.

Interpretation 1038 ‘Contributions by Owners Made to Wholly-Owned Public Sector Entities (revised) (December 2007).Required to be applied to annual reporting periods beginning on or after 1 July 2008.

The existing requirements in AAS 27, AAS 29 and AAS 31 have been transferred to the above new and existing topic-based standards and interpretations. These requirements remain substantively unchanged. AASB 1050, AASB 1051, and AASB 1052 do not apply to Statutory Authorities. The other Standards and Interpretations make some modifications to disclosures and provide additional guidance (for example, Australian Guidance to AASB 116 ‘Property, Plant and Equipment’ in relation to heritage and cultural assets has been introduced), otherwise, there will be no financial impact.

Changes in accounting estimatesNo changes in accounting estimates exist.

29

PILBARA TAFENOTES TO THE FINANCIAL STATEMENTS 08GLACT 07GLACTFOR THE YEAR ENDED 31 DECEMBER 2008

2008 2007$ $

6 Employee benefits expenseWages and salaries (a) 14,842,473 13,696,502 Superannuation - defined contribution plans (b) 1,135,992 1,109,949 Superannuation - defined benefit plans (c)(d) 82,591 42,033 Long service leave (e) 302,093 169,929 Annual leave (e) 121,254 525,085 Other 5,687,829 3,717,830

22,172,232 19,261,328

(a) Includes the value of the fringe benefit to the employee plus the fringe benefit tax component.

(b) Defined contribution plans include West State, and Gold State and GESB Super Scheme (contributions paid).

(c) Defined benefit plans include the Pension and the Gold State Scheme (pre-transfer benefit).

(d) An equivalent notional income is also recognised (see note 21 'Income from State Government'). Commencing

in 2008, the reporting of notional superannuation expense and equivalent notional income has been discontinued.

(e) Includes a superannuation contribution component.

7 Supplies and servicesConsumables and minor equipment 1,159,490 1,082,264 Communication expenses 304,369 307,294 Utilities expenses 1,049,901 1,039,920 Consultancies and contracted services (a) 3,463,478 3,207,710 Minor works 1,029,939 1,425,728 Repairs and maintenance 405,471 262,405 Operating lease and hire charges 813,268 682,138 Travel and passenger transport 650,310 570,558 Advertising and public relations 213,394 196,239 Supplies and services - other 417,288 252,991

9,506,908 9,027,247 (a) Audit Fees, see also note 41 (Remuneration of Auditor).

8 Depreciation and amortisation expense

DepreciationBuildings 1,208,067 969,351 Motor vehicles, caravans and trailers 31,049 46,049 Plant, furniture and general equipment 171,474 142,122 Computers and communication network 196,427 260,542 Marine craft 3,226 3,226 Total depreciation 1,610,243 1,421,290

AmortisationSoftware 35,670 71,844 Total amortisation 35,670 71,844

Total depreciation and amortisation 1,645,913 1,493,134

9 Finance costsInterest paid to WA Treasury Corporation 45,456 45,546

45,456 45,546

Finance costs expensed 45,456 45,546

10 Grants and subsidiesAdult and community education organisationsPayments to non-TAFE providers for VET service deliveryCapital grantsApprentices and trainees (travel, accommodation and other off-the-job assistance)Other 8,171 -

8,171 -

Employment on-costs such as workers' compensation insurance are included at note 12 'Other expenses'. Theemployment on-costs liability is included at note 31 'Provisions'.

30


2008 2007$ $

11 Capital user chargeCapital user charge expense - 1,704,127

12 Other expensesAsset revaluation decrement - - Building maintenance 338,813 151,660 Doubtful debts expense 24,848 69,956 Employment on-costs (a) 956,619 936,573 Donations 4,250 2,750 Student prizes and awards 3,950 337 Losses and write-offs 25,670 654 Other (c) 720,208 120,270

2,074,358 1,282,200 (a) Includes workers' compensation insurance and other employment on-costs. The on-costs liability associated with the recognition of annual and

long service leave liability is included at note 31 'Provisions'. Superannuation contributions accrued as part of the provision for leave are employee

benefits and are not included in employment on-costs.

(b) Non-current assets available for sale are measured at lower of carrying amount and fair value less selling costs.

(c) Includes Refunds of Prior Year Revenue; Overhead Costs

13 Fee for serviceFee for service - general 1,069,688 1,061,082 Fee for service - Department of Education and Training - - Fee for service - Government (other than Department of Education and Training) 30,772 6,671 Adult community education fees - 327 International division fees 17,235 6,020 Fee for service - other (287) -

1,117,408 1,074,100

14 Student fees and chargesTuition fees 883,840 703,470 Enrolment fees 16,098 119,971 Resource fees 874,916 724,853 Other college fees 145,560 61,687

1,920,414 1,609,981

15 Ancillary tradingLive works (not a trading activity) 17,194 7,376 Joint venture - net operating result 43,457 60,261 Other ancillary revenue 78,238 960

138,889 68,597

16 Trading profit/(loss)

(a) Bookshop: Sales 127,255 139,983

Cost of sales:Opening inventory (73,158) (79,260) Purchases (82,743) (110,501)

(155,901) (189,761) Closing inventory (57,512) (73,158)

Cost of goods sold (98,389) (116,603) Trading profit/(loss) - Bookshop 28,866 23,380

(b) Other tradingSales 308,321 235,402

Cost of sales:Opening inventory - - Purchases - -

- - Closing inventory

Cost of goods sold

Trading profit/(loss) - Other trading 308,321 235,402

435,576 375,385 See note 2(o) 'Inventories' and note 23 'Inventories'.

The charge was a levy applied by Government for the use of its capital. The final charge was levied in 2006-07

31


2008 2007$ $

17 Commonwealth grants and contributionsCommonwealth specific purpose grants and contributions 274,510 56,251 Commonwealth capital grants and contributions

274,510 56,251 These grants include Indigenous Funding from the Department of Education, Employment & Workplace Relations.

18 Interest revenueInterest revenue 257,741 318,939

19 Other revenueRental and facilities fees 516,935 339,984 Local Government Grants and Contributions for Walkington Theatre and Community Libraries 727,361 756,733 Other direct grants and subsidy revenue 912,027 1,110,637 Expense Recoveries 114,911 294,634 Childcare Fees 126,941 112,444 Library Fees 9,879 7,064 Copyright and royalties revenueSponsorship and donations revenue 13,569 2,514 GEHA Rent Contributions 619,770 548,457 Facilities Income - Pundulmurra Village 171,655 570,121 Miscellaneous revenue 229,514 87,758

3,442,562 3,830,346

20 Net gain/(loss) on disposal of non-current assets

Proceeds from disposal of non-current assetsLand - - Buildings - - Motor vehicles, caravans and trailers - - Plant, furniture and general equipment 550 2,012 Computers and communication network - - Marine craft - - Works of art - - Total proceeds from disposal of non-current assets 550 2,012

Net gain/(loss) 550 2,012

21 Income from State Government

State funds (received from Department of Education and Training):Delivery and Performance Agreement (DPA 23,626,174 20,415,366 Other recurrent funds 1,837,380 1,838,729 Capital user charge funding - 1,704,127 Capital works transferred - 21,754 Total State funds 25,463,554 23,979,976

Resources received free of charge determined on the basis of the following estimates provided by agencies(c):Department of Education and Training- Corporate systems support 701,533 620,031 - Marketing and publications 30,326 8,035 - Human resources, and industrial relations support - 102,369 - Other 65,432 21,325

797,291 751,760 Department of Treasury and Finance Other Government - - Total resources received free of charge 797,291 751,760

Total income from State Government 26,260,845 24,731,736

the notional superannuation expense and equivalent notional income has been discontinued. Where the Treasurer

or other entity has assumed a liability, the Authority recognises revenues equivalent to the amount of the liability

assumed and an expense relating to the nature of the event or events that initially gave rise to the liability.

(b) Discretionary transfers of assets between State Government agencies are reported as assets assumed/

(transferred) under Income from State Government. Non discretionary non reciprocal transfers of net assets

(ie. restructuring of administrative arrangements) have been classified as Contributions by Owners (CBOs)

under TI 955 and are taken directly to equity.

(c) Where assets or services have been received free of charge or for nominal cost, the Authority recognises

revenues equivalent to the fair value of the assets and/or the fair value of those services that can be reliably

measured and which would have been purchased if they were not donated, and those fair values shall be

recognised as assets or expenses, as applicable. Where the contribution of assets or services are in the nature

of contributions by owners, the Authority makes an adjustment direct to equity

superannuation expense reported in respect of current employees who are members of the Pension Scheme

and current employees who have a transfer benefit entitlement under the GSS Scheme. (The notional super-

annuation expense is disclosed at note 6 'Employee benefits expense'.) Commencing in 2008, the reporting of

(a) The assumption of the superannuation liability by the Treasurer is notional income to match the notional

32


2008 2007$ $

22 Restricted cash and cash equivalents27th Pay - Restricted Cash 199,253 141,849

199,253 141,849

23 Inventories

Inventories held for resale:Bookshop (at cost) 57,512 73,158 Less: Provision for obsolete stock - -

57,512 73,158 Total 57,512 73,158

See also not 2(o) 'Inventories' and note 16 'Trading profit/(loss)'.

24 Receivables

CurrentReceivables - trade 977,337 702,184 Receivables - students 116,208 128,367 Receivables - other - - Accrued income 198,185 993,031 Allowance for impairment of receivables (113,178) (116,996) GST receivable 215,941 106,390

1,394,493 1,812,976 Total current 1,394,493 1,812,976

Non-currentReceivables - - Provision for doubtful debts - - Total non-current - -

Reconciliation of changes in the allowance for impairment of receivables:Balance at start of year (116,996) (58,849) Doubtful debts expense recognised in the Income Statement (24,286) (69,956) Amount written off during the year 29,539 11,809 Amount recovered during the year (1,435) - Balance at end of year (113,178) (116,996)

Credit Risk[Colleges are required to disclose the following by class of financial instrument, per AASB 7.36:

(a) the amount that best represents its maximum exposure to credit risk at the reporting date without taking account of any collateral

held or other credit enhancements (e.g. netting agreements that do not qualify for offset in accordance with AASB 132);

(b) in respect of the amount disclosed in (a), a description of collateral held as security and other credit enhancements;

(c) information about the credit quality of financial assets that are neither past due nor impaired; and

(d) the carrying amount of financial assets that would otherwise be past due or impaired whose terms have been renegotiated.]

Ageing of receivables past due but not impaired based on the information provided to senior management,as at the balance sheet date:Not more than 3 months 834,714 565,521 More than 3 months but less than 6 months 258,831 265,030 More than 6 months but less than 1 year - - More than 1 year - -

1,093,545 830,551

The College trades only with recognised, creditworthy third parties. The College has policies in place to ensurethat sales of products and services are made to customers with an appropriate credit history. In addition,receivable balances are monitored on an ongoing basis with the result that the College's exposure to debt isminimal. There are no significant concentrations of credit risk.

See also note 2(p) 'Receivables' and note 39 'Financial instruments'.

25 Other assets

CurrentPrepayments 262,036 157,675 Other current assets (b) 74,075 181,336 Total current 336,111 339,011

Non-currentCash investments (a) - - Other non-current assets (b) - - Total non-current - -

33


2008 2007$ $

26 Property, plant and equipment

LandAt fair value (a) 22,380,000 16,284,000 Accumulated impairment losses

22,380,000 16,284,000 BuildingsAt fair value (a) 90,960,000 48,322,700 Accumulated depreciation - (163,707) Accumulated impairment losses - -

90,960,000 48,158,993 Buildings under constructionConstruction costs 14,097 21,754

14,097 21,754 Motor vehicles, caravans and trailers At Cost 423,246 423,246 Accumulated depreciation (255,377) (224,328) Accumulated impairment losses - -

167,869 198,918 Plant, furniture and general equipmentAt Cost 1,723,779 1,496,853 Accumulated depreciation (682,682) (518,708) Accumulated impairment losses - -

1,041,097 978,145 Computer equipment, communication networkAt Cost 2,038,521 1,419,150 Accumulated depreciation (1,272,961) (1,076,534) Accumulated impairment losses - -

765,560 342,616 Marine craftAt Cost 41,000 41,000 Accumulated depreciation (19,357) (16,131) Accumulated impairment losses - -

21,643 24,869

115,350,266 66,009,295

(a) Freehold land and buildings were revalued as at 01 July 2008 by the Western Australian Land Information Authority

(Landgate). The valuations were performed during the year ended 31 December 2008 and recognised at 31 December 2008. The fair value of all

land and buildings was determined by reference to market values. See note 2(g) 'Property, plant and equipment'.

Reconciliations of the carrying amounts of property, plant and equipment at the beginning and end of the reporting period are set out below.

2008 Land BuildingsBuildings under

construction

Motor vehicles,caravans and

trailersPlant, furniture and

general equipment

Computerequipment,

communicationnetwork Marine Craft Total

Carrying amount at start of year 16,284,000 48,158,993 21,754 198,918 978,145 342,616 24,869 66,009,295 Additions - 950,000 14,097 - 234,426 619,370 1,817,893 Transfers - - (21,754) - (21,754) Disposals - - - - - Classified as held for sale - - - - - - - Revaluation increments 6,096,000 43,474,680 - - - - 49,570,680 Adjustment - (415,606) - - - (415,606) Impairment losses reversed (a) - Depreciation expense - (1,208,067) - (31,049) (171,474) (196,427) (3,226) (1,610,244)

Carrying amount at end of year 22,380,000 90,960,000 14,097 167,869 1,041,097 765,559 21,643 115,350,266

2007 Land BuildingsBuildings under

construction

Motor vehicles,caravans and

trailersPlant, furniture and

general equipment

Computerequipment,

communicationnetwork Marine Craft Total

Carrying amount at start of year 2,610,000 34,980,636 - 262,230 1,573,552 1,003,288 - 40,429,706 Additions - - 21,754 - 352,004 188,391 562,149 Transfers 7,594 (30,769) (8,889) 30,435 (1,629) Disposals - - - - - - Classified as held for sale - - - - - - - threshold (24,856) (774,520) (579,631) (2,340) (1,381,347) Revaluation increments 13,674,000 14,147,708 - - - - 27,821,708 Impairment losses (a) - - - - - - Impairment losses reversed (a) - Depreciation expense - (969,351) - (46,049) (142,122) (260,542) (3,226) (1,421,290) Carrying amount at end of year 16,284,000 48,158,993 21,754 198,919 978,145 342,617 24,869 66,009,297

(a) Recognised in the Income Statement. Where an asset measured at cost is written down to recoverable amount,

an impairment loss is recognised in the Income Statement. Where an asset measured at fair value is written down

to recoverable amount, the loss is accounted for as a revaluation decrement.

34


2008 2007$ $

27 Intangible assets

Computer softwareAt cost 365,221 365,221 Accumulated amortisation (365,221) (329,551) Accumulated impairment losses - -

- 35,670

ReconciliationsComputer softwareCarrying amount at start of year 35,670 107,514 Reclassification of assets 1 January 2007 - 1,629 Change in asset accounting threshold - (1,629) Additions - - Classified as held for sale - - Revaluation increments - - Impairment losses recognised in Income Statement - - Impairment losses reversed in Income Statement - - Amortisation expense (35,670) (71,844) Carrying amount at end of year - 35,670

28 Impairment of assetsThere were no indications of impairment of property plant, equipment and intangibles as at 31 December 2008.

The College held no goodwill or intangible assets with indefinite useful lifes during the reporting period and at balance sheet date there were no intangible assets not yet available for use.

All surplus assets as at 31 December 2008 have either been classified as assets held for sale or written off.

29 Payables

Current Trade payables 275 - GST payable 43,208 42,336 Accrued expenses 623,356 640,615 Accrued salaries and related costs 217,674 102,023 Amounts owing to Department of Education and Training - DPA Refund - 310,000 Total current 884,513 1,094,974

30 Borrowings

CurrentBorrowings from WA Treasury Corporation 68,846 66,860 Total current 68,846 66,860

Non-currentBorrowings from WA Treasury Corporation 570,595 640,181 Total non-current 570,595 640,181

(a) Lease liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of default.

31 Provisions

CurrentEmployee benefits provisionAnnual leave (a) 796,254 696,938 Long service leave (b) 496,393 524,675 Superannuation 104,266 63,889 Salary Deferement (d) 20,779 14,639

1,417,692 1,300,141 Other provisionsEmployment on-costs (c) 86,009 45,301 Other (provide details) - -

86,009 45,301 Total current 1,503,701 1,345,442

Non-currentEmployee benefits provisionAnnual leaveLong service leave (b) 740,103 542,829 Superannuation 46,626 34,198 Salary Deferement (d)

786,729 577,027 Other provisionsEmployment on-costs (c) 51,067 34,741 Other (provide details)

51,067 34,741 Total non-current 837,796 611,768

Within 12 months of balance sheet date 796,254 696,938 More than 12 months after balance sheet date - -

796,254 696,938

(a) Annual leave liabilities have been classified as current as there is no unconditional right to defer settlement

for at least 12 months after balance sheet date. Assessments indicate that actual settlement of the liabilities

will occur as follow:

35


2008 2007$ $

(b) Long service leave liabilities have been classified as current where there is no unconditional right to defer

settlement for at least 12 months after balance sheet date. Assessments indicate that actual settlement ofthe liabilities will occur as follows:Within 12 months of balance sheet date 326,977 247,665 More than 12 months of balance sheet date 1,072,736 888,778

1,399,713 1,136,443

is disclosed in note 12 'Other expenses'.

Movements in other provisionsMovements in each class of provisions during the financial year, other than employee benefits, are set out below.

Employment on-cost provisionCarrying amount at start of year 80,042 - Additional provisions recognised 57,034 80,042 Carrying amount at end of year 137,076 80,042

32 Other liabilities

Current Income received in advance (a) 18,726 2,295 Grants and advances (provide details) 257,459 848,028 Money/deposits held in trust 16,752 16,552 Other 57,733 57,557 Total current liabilities 350,670 924,432

Non-current OtherTotal non-current liabilities - -

(a) Income received in advance comprises:Department of Education and Training - competitive allocation tendering - - Department of Education and Training - curriculum grants - 118,618 Other Government (Commonwealth/Local) 105,058 44,658 Other 152,401 684,752

257,459 848,028

33 EquityEquity represents the residual interest in the net assets of the College. The Government holds the equity interestin the net assets of the College. The Government holds the equity interest in the College on behalf of the community.The asset revaluation reserve represents that portion of equity resulting from the revaluation of non-current assets.

Contributed equityBalance at start of year 27,702,097 27,702,097

Contributions by ownersCapital contribution (a) 528,960 Transfer of net assets from other agencies (a) - - Total contributions by owners 528,960 -

Balance at end of year 28,231,057 27,702,097

(a) Capital Contributions (appropriations) and non-discretionary (non-reciprocal) transfers of net assets from other

State Government agencies have been designated as contributions by owners in Treasurer's Instruction TI 955

Contribution by Owners Made to Wholly Owned Public Sector Entities' and are credited directly to equity.

(b) UIG Interpretation 1038 'Contributions by Owners Made to Wholly-Owned Public Sector Entities' requires that where

the transferee accounts for a transfer as a contribution by owner, the transferor must account for the transfer as a

distribution to owners. Consequently, non-discretionary (non-reciprocal) transfers of net assets to other State

Government agencies are distribution to owners and are debited directly to equity.

(c) TI 955 requires non-reciprocal transfers of assets to Government to be accounted for as distribution to owners.

ReservesAsset revaluation reserveBalance at start of year 33,197,669 5,375,961 Net revaluation increments/(decrements)Land 6,096,000 13,674,000 Buildings 43,474,680 14,147,711 Balance at end of year 82,768,349 33,197,672

Other reservesBalance at start of year 191,606 191,606 Transfer (to)/from accumulated surplusOther adjustments during the yearBalance at end of year 191,606 191,606

82,959,955 33,389,278

Accumulated surplus/(deficit) Balance at start of year 6,172,900 8,418,715 Result for the period (1,702,933) (862,838)

- - Other adjustments (1,382,977) Balance at end of year 4,469,967 6,172,900

Income and expense recognised directly to equity

on-costs including workers' compensation insurance. The provision is the present value of expected

future payments. The associated expense, apart from the unwinding of the discount (finance cost),

(d) Salary Deferment - an officer may elect to receive, over a four-year period, 80% of the salary they

would otherwise be entitled to receive in accordance with the GOSAC Award.

(c) The settlement of annual and long service leave liabilities gives rise to the payment of employment

36


2008 2007$ $

34 Notes to the Cash Flow Statement

Reconciliation of cash

Cash on hand 6,300 6,272 Cash advances - - Cash at bank 2,732,418 3,671,549 Short term deposits - -

2,738,718 3,677,821

Reconciliation of net cost of services to net cash flows provided by/(used in) operating activities

Net cost of services (27,963,778) (25,594,574)

Non-cash items:Depreciation and amortisation expense 1,645,913 1,493,134 Doubtful debts expense (3,818) 69,956 Superannuation expense 1,218,583 1,151,982 Resources received free of charge 797,291 751,760 Net (gain)/loss on sale of property, plant and equipment (550) (2,012) Write down of non-current assets classified as held for sale (550) - Losses and write-offs (excludes cash shortages/thefts of money) - 654 Asset revaluation decrement - -

(Increase)/decrease in assets:Current receivables (c) (262,994) 631,417 Current inventories 15,645 5,448 Prepayments (104,360) 68,610 Other current assets 792,556 (232,397) Non-current receivables - - Non-current inventories - - Other non current assets - - Increase/(decrease) in liabilities - - Current payables (c) 275 (3,699) Current provisions 158,259 (244,291) Other current liabilities (1,586,530) (2,224,398) Non-current provisions 226,028 (91,954) Other non-current liabilities - -

Net GST receipts/(payments) (a) (109,551) 54,712 Change in GST in receivables/payables (b) 110,423 (55,686)

Net cash provided by/(used in) operating activities (25,067,158) (24,221,338)

(a) This is the net GST paid/received, i.e. cash transactions

(b) This reverses out the GST in receivables and payables

(c) Note that the Australian Taxation Office (ATO) receivable/payable in respect of GST and the receivable/payable

in respect of the sale/purchase of non-current assets are not included as they are not reconciling item

Non-cash financing and investing activities

The College did not engage in any non-cash financing and investment activities for the period.

35 Commitments

Lease commitments

Within 1 year 344,150 314,439 Later than 1 year and not later than 5 years 171,490 189,382 Later than 5 years - -

515,640 503,821 Representing:Cancellable operating leasesNon-cancellable operating leases 515,640 503,821 Future finance charges on finance leases - -

515,640 503,821 The College has the option to purchase leased assets at their agreed fair value on expiry of the lease.The leasing arrangements do not have escalation clauses, other than in the event of payment default.There are no restrictions imposed by these leasing arrangements on other financial transactions. Certain finance leaseshave a contingent obligation however these are not material when compared with the total lease payments made.

These commitments are all inclusive of GST.

Commitments in relation to leases contracted for at the balance sheet date but not recognised in the financial statements, are payable as follows:

Cash at the end of the financial year, as shown in the Cash Flow Statement is reconciled to the related items in the Balance Sheet as follows:

37


2008 2007$ $

36 Contingent liabilities and contingent assets

Contingent liabilitiesIn addition to the liabilities incorporated in the financial statements, the College has the following contingent liabilities:

An Agreement dated the 13 June 1985 exists between the former West Pilbara College of TAFE and the Shire of Roebourneunder which the Walkington Theatre was constructed and currently operates. This Agreement includes a termination clausethat comes into effect either upon:

(a) the expiration of 40 years from the date of the Agreement, provided that the College and the Shire agree to continue thAgreement from year to year.(b) either party given notice to the other party 12 months notice of termination of the Agreement at any time.

The Agreement provides that in the event of its termination by either of these methods, the College shall pay to the Shire andthe State, the value of the Theatre at the time (as determined by Landgate), proportional to the contribution made by the Shirein the initial cost of the development and the construction of the complex, excludind land, being a $2.3 million contribution of atotal of $2.7 million or 85% contribution.

As at 31 December 2008, the College estimates this contingency liability to be approximately $1.47m.

Contaminated sitesUnder the Contaminated Sites Act 2003, the College is required to report known and suspected contaminatedsites to the Department of Environment and Conservation (DEC). In accordance with the Act, DEC classifiesthese sites on the basis of the risk to human health, the environment and environmental values. Where sitesare classified as contaminated - remediation required or possibly contaminated - investigation required, theCollege may have a liability in respect of investigation or remediation expenses.

Government asbestos guidelines state that any building or building product manufactured prior to 1987 should be treated as containing the asbestos product.Under this determination, the College deems that all if its sites would need to be reasonably suspected of containing asbestos.Sites that are confirmed as being suspected of containing asbestos include Roebourne, Pundulmurra, Pannawonica and Onslow.

37 Events occurring after the balance sheet date

The Department of Education & Training will fund Pilbara TAFE a sum of $891,000 related to Government Regional Officer Housing Costs for 2008.The shortfall of funding was recognised in late 2008, however funding approval was only given in March 2009.

38 Explanatory Statement

Significant variations between estimates and actual results for income and expense are shown below. Significantvariations are considered to be those greater than $200,000.

Significant variations between estimated and actual results for 082008 2008

Estimate Actual Variation$ $ $

Employee expenses 19,463,748 22,172,232 (2,708,484) Supplies and services 10,452,787 9,506,908 945,879 Other Expenses 1,816,288 2,074,358 (258,070)

Employee expenses- Higher Employee Expenses resulted from the Awards Increases across GOSAC and Academic employees. The increase was further impacted by the backpay to February 2008. In addition, GROH housing costs jumped significantly as a result of a number of renewed leases charged at current higher lease rates.- General rising costs of living in the region have accounted for the increase in Supplies & services across the College. Increases have mostly impacted the following areas : (i) Consultancy & Contracted Services; (ii) Repairs & Maintenance & (iii) Travel- Additional, incorrect DPA funds received in 2008 that was recognised as income in the 2007 financial year was refunded in 2008, accounting for the increase in other expenses

2008 2007 VarianceExpense $ $ $Income Fee For Service 1,117,408 1,074,100 43,308 Other Revenue 3,442,562 3,830,346 (387,784)

Employee expenses 22,172,232 19,261,328 2,910,904 Supplies and services 9,506,908 9,027,247 479,661 Other Expenses 2,074,358 1,282,200 792,158

Income- Income from Pundulmurra Village was significantly reduced ($400k) in 2008 as a result of prior year overcharges being credited in 2008.

Expense- Higher Employee Expenses resulted from the Awards Increases across GOSAC and Academic employees. The increase was further impacted by the backpay to February 2008. In addition, GROH housing costs jumped significantly as a result of a number of renewed leases charged at current higher lease rates.- General rising costs of living in the region have accounted for the increase in Supplies & services across the College. Increases have mostly impacted the following areas : (i) Consultancy & Contracted Services; (ii) Repairs & Maintenance & (iii) Travel- Additional, incorrect DPA funds received in 2008 that was recognised as income in the 2007 financial year was refunded in 2008, accounting for the increase in other expenses

Significant variations between actual results for 08 and 07

38


2008 2007$ $

39 Financial instruments

(b) Categories of financial instrumentsIn addition to cash and bank overdraft, the carrying amounts of each of the following categories of financial assets and financial liabilities at the balance sheet date are as follows: 2008 2007Financial AssetsCash and cash equivalent 2,539,465 3,535,972 Restricted cash and cash equivalent 199,253 141,849 Receivables(a) 980,367 713,555 Loans and advances 272,260 435,686

Financial LiabilitiesPayables 114,265 91,044 WATC/bank borrowings 639,441 707,041 Other borrowingsFinance lease liabilities(a) The amount of loans and receivables excludes GST recoverable from the ATO (statutory receivable)

managed by WATC through portfolio diversification and variation in maturity dates. Other than as detailed in the Interest rate sensitivity analysis table at note 39(c), The College is not exposed to interest rate risk becauseapart from minor amounts of restricted cash, all other cash and cash equivalents and a portion of restricted cash are non-interest bearing and it has no borrowings other than WATC borrowings and finance leases (fixed interest rate).

The Authority does not trade in foreign currency and is not materially exposed to other price risks (for example, equity securities or commodity prices changes). The College's exposure to market risk for changes in interest rates relates primarily to the long-term debt obligations. The College's borrowings are all obtained through the Western Australian Treasury Corporation (WATC) and are at fixed rates with varying maturities. The risk is

Liquidity riskThe College has appropriate procedures to manage cash flows including drawdowns of appropriations by monitoring forecast cash flows to ensure that sufficient funds are available to meet its commitments.

Market risk

that sales of products and services are made to customers with an appropriate credit history. In addition,receivable balances are monitored on an ongoing basis with the result that the College's exposure to debt isminimal. There are no significant concentrations of credit risk.

loans, finance leases, borrowings and receivables and payables. The College has limited exposure to financialrisks. The College's overall risk management program focus on managing the risk identified below:

Credit riskThe College trades only with recognised, creditworthy third parties. The College has policies in place to ensure

(a) Financial risk management objectives and policiesFinancial instruments held by the College are cash and cash equivalents, restricted cash and cash equivalents,

39


2008 2007$ $

(c) Financial instrument disclosuresCredit risk, liquidity risk and interest rate risk exposures

Weighted Average Effective Interest

Rate

Variable Interest Rate

Within 1 year 1-2 Years 2-3 Years 3-4 Years 3-4 Years 4-5 Years More than 5 years Non-Interest Bearing Total

2008 % $ $ $ $ $ $ $ $ $ $Financial AssetsCash and cash equivalent 4.00% - - - - - - - - - - Restricted cash and cash equivalent - 2,738,718 - - - - - - - 2,738,718 Receivables - - - - - - - - 1,394,493 1,394,493 Loans and advances - - - - - - - - - -

- 2,738,718 - - - - - - 1,394,493 4,133,211 Financial LiabilitiesPayables - - - - - - - - 43,208 43,208 Bank overdraft - - - - - - - - - - WATC/bank borrowings 6.05% - 68,846 68,846 68,846 68,846 68,846 68,846 - - 413,076 Other borrowings - - - - - - - - - - Finance lease liabilities - - - - - - - - - -

- 68,846 68,846 68,846 68,846 68,846 68,846 - 43,208 456,284

Weighted Average Effective Interest

Rate

Variable Interest Rate

Within 1 year 1-2 Years 2-3 Years 3-4 Years 3-4 Years 4-5 Years More than 5 years Non-Interest Bearing Total

2007 % $ $ $ $ $ $ $ $Financial AssetsCash and cash equivalent 6.25% - 3,819,668 - - - - - - - 3,819,668 Restricted cash and cash equivalent - - - - - - - - - - Receivables - - - - - - - - 977,621 977,621 Loans and advances - - - - - - - - - -

- 3,819,668 - - - - - - 977,621 4,797,289 Financial LiabilitiesPayables - - - - - - - - 42,336 42,336 Bank overdraft - - - - - - - - - - WATC/bank borrowings 6.38% - 66,860 66,860 66,860 66,860 66,860 66,860 372,741 - 773,901 Other borrowings - - - - - - - - - - Finance lease liabilities - - - - - - - - - -

- 66,860 66,860 66,860 66,860 66,860 66,860 372,741 42,336 816,237

Interest rate sensitivity analysis

the change in interest rates is held constant throughout the reporting period.

Carrying amount Profit Equity Profit Equity 2008 $ $ $ $ $

Financial AssetsRestricted cash and cash equivalent 2,738,718 -27,387 -27,387 27,387 27,387

Financial LiabilitiesBank overdraftWATC/bank borrowings 708,287 7,083 7,083 -7,083 -7,083

Carrying amount Profit Equity Profit Equity 2007 $ $ $ $ $

Financial AssetsRestricted cash and cash equivalent 3,819,668 -38,197 -38,197 38,197 38,197

Financial LiabilitiesBank overdraftWATC/bank borrowings 772,530 7,725 7,725 -7,725 -7,725

Fair valuesAll financial assets and liabilities recognised in the balance sheet, whether they are carried at cost or fair value, are recognised at amounts that represent a reasonable approximation of fair value unless otherwise stated in the applicable notes.

at the balance sheet date on the surplus for the period and equity for a 1% change in interest rates. It is assumed that

- 1% change +1% change

- 1% change +1% change

resulted in them being past due or impaired.Contractual maturity dates

Contractual maturity dates

The following table represents a summary of the interest rate sensitivity of the College's financial assets and liabilities

ment for discounting has been made where material.The College does not hold any collateral as security or other credit enhancements relating to the financial assets it holds.The College does not hold any financial assets that had to have their terms renegotiated that would have otherwise

The following table details the College's maximum exposure to credit risk, and the exposure to liquidity risk and interest rate risk as at the reporting date, based on information provided to senior management of the College. The contractual maturity amounts in the table are representative of the undiscounted amounts as at the balance sheet date. An adjust-

40


2008 2007$ $

40 Remuneration of members of the College and Senior Officers

$ $0 - $50,000 - 1$50,001 - $60,000 - - $60,001 - $70,000 - - $70,001 - $80,000 - $80,001 - $90,000 - 1

$90,001 - $100,000 - - $100,001 - $110,000 - - $110,001 -$120,000 - - $120,001 -$130,000 - - $130,001 - $140,000 - 1$140,001 + 1 -

The total remuneration of the members of the College is: 161,259 263,272

Total remuneration includes the superannuation expense incurred by the College in respect of members of the College.

Remuneration of Senior Officers

$$50,001 - $60,000 - - $60,001 - $70,000 - 1$70,001 - $80,000 - - $80,001 - $90,000 - - $90,001 - $100,000 1 - $100,001 - $110,000 1 1$110,001 -$120,000 2 1$120,001 -$130,000 1 - $130,001 - $140,000 - 1$140,001 - $150,000 - 1

The total remuneration of senior officers is: 546,979 594,589

The total remuneration includes the superannuation expense incurred by the College in respect of senior officers otherthan senior officers reported as members of the College.

No senior officers are members of the Pension Scheme.

41 Remuneration of auditorRemuneration payable to the Auditor General for the financial year is as follows:

Auditing the accounts, financial statements and performance indicators 52,500 60,000

The expense is included in note 12 'Other expenses'.

42 Related BodiesThe College has no related bodies.

43 Affiliated BodiesThe College has no affiliated bodies.

44 Supplementary Financial Information

Write-OffsPublic property 1,952 654 Bad debts 29,539 11,809 Inventory - - Other (provide details) - -

Gifts of Public PropertyGifts of Public Property provided by the College - 3,087

45 Schedule of Income and Expenditure by Service

Education and Training Delivery.The college provides only one service (as defined by Treasurer's Instruction 1101 (9) and that is Vocational

bands are:

benefits and other benefits for the financial year, fall within the following bands are:

The number of senior officers other than senior officers reported as members of the College, whose total of fees,salaries, superannuation, non-monetary benefits and other benefits for the financial year, fall within the following

Remuneration of members of the CollegeThe number of members of the College whose total of fees, salaries, superannuation, non-monetary

41

Pilbara TAFES40 SUBMISSIONINCOME STATEMENT

2007 2008 2008 2009 2010 2011

Est ACTAUDITED Estimate 31/12/2008 Estimate Forecast Forecast

$ $ $ $ $ $

COST OF SERVICES

ExpensesEmployee benefits expense 19,261,328 21,406,898 19,463,748 20,339,617 1 21,254,899 22,211,370Supplies and services 8,764,842 9,300,000 10,452,787 11,253,162 2 9,300,000 9,300,000Depreciation and amortisation expense 1,493,134 1,456,391 1,459,298 1,356,545 1,357,494 1,357,494Finance costs 45,546 47,724 46,000 44,000 42,000 40,000Grants and subsidies 0 0Capital user charge See Note (1) 1,704,127 0Loss on disposal of non-current assetsLoss on disposal of other assetsOther expenses 1,544,605 1,005,230 1,816,288 1,898,021 3 1,983,432 2,072,686Payments to Non TAFE Providers for VET DeliveryCost of sales 116,603 98,821 96,000 100,320 104,834 109,552

Total Cost of Services 32,930,185 33,315,064 33,334,121 34,991,665 34,042,660 35,091,102

IncomeRevenueFee for service 1,074,100 1,800,000 1,237,215 1,800,000 4 1,881,000 1,965,645Student charges and fees 1,609,981 1,822,337 1,909,546 1,995,476 2,085,272 2,179,109Sales 139,983 95,613 141,819 148,201 154,870 161,839Ancillary trading 304,000 275,000 260,964 272,707 284,979 297,803Commonwealth grants and contributions 56,251 50,000 274,510 50,000 5 52,250 54,601Interest revenue 318,939 150,000 252,000 250,000 261,250 273,006Other revenue 3,830,346 3,098,032 3,187,608 3,231,050 3,376,447 3,528,387Total Revenue 7,333,600 7,290,982 7,263,662 7,747,434 8,096,068 8,460,391

GainsGain on disposal of non-current assets 2,012 550 0 0 0Gain on disposal of other assetsOther gainsTotal Gains 2,012 0 550 0 0 0

Total income other than income from State Government 7,335,612 7,290,982 7,264,212 7,747,434 8,096,068 8,460,391

NET COST OF SERVICES -25,594,573 -26,024,082 -26,069,909 -27,244,231 -25,946,591 -26,630,711

INCOME FROM STATE GOVERNMENT

State funds 23,958,222 23,197,314 24,657,401 24,702,649 24,849,636 25,003,237 Liabilities assumed by the TreasurerAssets assumed/(transferred) 21,754 Resources received free of charge 751,760 930,050 650,000 650,000 650,000 650,000 Total income from State Government 24,731,736 24,127,364 25,307,401 25,352,649 25,499,636 25,653,237

SURPLUS (DEFICIT) FOR THE PERIOD -862,837 -1,896,718 -762,508 -1,891,582 -446,956 -977,474

Notes

42

Pilbara TAFES40 SUBMISSIONBALANCE SHEET

2007 2008 2008 2009 2010 2011


$ $ $ $ $ $ASSETSCurrent Assets Cash and cash equivalents 3,677,821 3,179,076 3,080,290 1,075,176 1 1,558,416 1,446,729Restricted cash and cash equivalentsInventories 73,157 80,000 73,158 80,000 80,000 80,000Receivables 977,621 1,200,000 1,680,666 1,756,296 2 1,669,078 1,607,305Amounts receivable for servicesOther current assets 1,174,367 300,000 1,221,837 1,240,165 1,295,972 1,354,291Non-current assets classified as held for sale

Total Current Assets 5,902,966 4,759,076 6,055,951 4,151,637 4,603,466 4,488,325

Non-Current AssetsRestricted cash and cash equivalentsInventoriesReceivablesAmounts receivable for servicesProperty, plant and equipment 66,009,296 39,224,233 64,549,998 63,943,453 65,385,959 64,528,465Intangible assets 35,669 0 0 0 3 0 0Other non-current assetsTotal Non-Current Assets 66,044,965 39,224,233 64,549,998 63,943,453 65,385,959 64,528,465TOTAL ASSETS 71,947,931 43,983,309 70,605,949 68,095,090 69,989,425 69,016,790 LIABILITIESCurrent LiabilitiesPayables 42,336 1,050,000 35,367 36,959 38,250 40,361Borrowings 66,860 66,000 67,348 66,000 66,000 66,000Amounts due to the TreasurerProvisions 1,345,442 1,700,000 1,304,678 1,400,000 4 1,500,000 1,600,000Other current liabilities 1,977,072 775,000 1,504,843 850,000 5 750,000 712,728

Total Current Liabilities 3,431,710 3,591,000 2,912,236 2,352,959 2,354,250 2,419,089

Non-Current LiabilitiesPayablesBorrowings 640,181 575,388 580,181 520,181 6 460,181 400,181Provisions 611,768 810,000 611,768 611,768 7 611,768 611,768Other non-current liabilitiesTotal Non-Current Liabilities 1,251,949 1,385,388 1,191,949 1,131,949 1,071,949 1,011,949TOTAL LIABILITIES 4,683,659 4,976,388 4,104,185 3,484,908 3,426,199 3,431,038

NET ASSETS 67,264,272 39,006,921 66,501,764 64,610,182 66,563,226 65,585,752

EQUITYContributed Equity 27,702,097 30,102,097 27,702,097 27,702,097 30,102,097 30,102,097Reserves 33,389,275 5,567,566 33,389,275 33,389,275 33,389,275 33,389,275Accumulated surplus/(deficiency) 6,172,900 3,337,258 5,410,392 3,518,810 3,071,854 2,094,380

TOTAL EQUITY 67,264,272 39,006,921 66,501,764 64,610,182 66,563,226 65,585,752

Liabilities directly associated with non-current assets classifiedas held for sale

Notes

43

Pilbara TAFES40 SUBMISSIONCHANGES IN EQUITY STATEMENT

2007 2008 2008 2009 2010 2011 Est ACT

AUDITED ESTIMATE 31/12/2008 Estimate Forecast Forecast$ $ $ $ $ $

Balance of equity at start of period 40,592,491 38,503,639 67,264,272 66,501,764 64,610,182 66,563,226

CONTRIBUTED EQUITYBalance at start of period 27,702,097 27,702,097 27,702,097 27,702,097 27,702,097 30,102,097Capital contribution 0 2,400,000 0 0 2,400,000 0Other contributions by owners 0 0Distributions to ownersBalance at end of period 27,702,097 30,102,097 27,702,097 27,702,097 30,102,097 30,102,097

Check 0 - 0 0 0 0

RESERVESAsset Revaluation ReserveBalance at start of period 5,567,566 5,567,566 33,389,275 33,389,275 33,389,275 33,389,275Changes in accounting policy or correction of prior period errorsRestated balance at start of period 5,567,566 5,567,566 33,389,275 33,389,275 33,389,275 33,389,275Gains/(losses) from asset revaluation 27,821,709Balance at end of period 33,389,275 5,567,566 33,389,275 33,389,275 33,389,275 33,389,275 Check 0 0 0 0 0 0

ACCUMULATED SURPLUS (RETAINED EARNINGS)Balance at start of period 8,418,716 5,233,976 6,172,900 5,410,392 3,518,810 3,071,854Net adjustment on transition to AIFRSChanges in accounting policy or correction of prior period errors -1,382,978Restated balance at start of period 7,035,738 5,233,976 6,172,900 5,410,392 3,518,810 3,071,854Surplus/(deficit) or profit/(loss) for the period -862,838 -1,896,718 -762,508 -1,891,582 -446,956 -977,474Gains/(losses) recognised directly in equityBalance at end of period 6,172,900 3,337,258 5,410,392 3,518,810 3,071,854 2,094,380

Check 0 0 0 0 0 0

Balance of equity at end of period 67,264,272 39,006,921 66,501,764 64,610,182 66,563,226 65,585,752

Total income and expense for the period 26,958,871 -1,896,718 -762,508 -1,891,582 -446,956 -977,474

Notes

44

Pilbara TAFES40 SUBMISSIONCASH FLOW STATEMENT

2007 2008 2008 2009 2010 2011


$ $ $ $ $ $CASH FLOWS FROM STATE GOVERNMENTState funds 23,897,724 23,197,314 23,496,093 23,496,341 23,643,328 23,796,929Capital contributionsHolding account drawdownsNet cash provided by State Government 23,897,724 23,197,314 23,496,093 23,496,341 23,643,328 23,796,929

Utilised as follows:

CASH FLOWS FROM OPERATING ACTIVITIESPaymentsEmployee benefits -18,391,046 -19,485,730 -18,343,204 -19,139,617 -20,054,899 -21,011,370Supplies and services -8,338,785 -8,460,232 -10,423,231 -11,253,162 1 -9,300,000 -9,300,000Finance costs -45,546 -47,724 -46,000 -46,000 -44,000 -42,000Capital User Charge -3,218,787Grants and subsidiesGST payments on purchases -922,190 -454,167 -1,033,553 -1,000,000 -849,236 -934,483GST payments to taxation authorityOther payments -1,573,547 -2,474,051 -1,655,157 -1,437,492 -1,500,000 -1,500,000

ReceiptsFee for service 1,722,223 1,876,000 541,165 1,535,023 1,850,000 1,950,000Student fees and charges 1,591,136 1,900,337 1,909,546 1,750,000 2,050,000 2,150,000Ancillary trading 304,000 370,613 260,964 272,707 270,000 280,000Commonwealth grants and contributions 56,251 50,000 274,510 50,000 60,000 60,000Interest received 296,224 220,000 252,000 250,000 2 261,250 273,006GST receipts on sales 271,570 883,000 898,871 947,835 900,000 900,000GST receipts from taxation authority 705,332Other receipts 3,321,828 3,105,241 3,329,427 3,379,251 3,650,797 3,817,232Net cash provided by/(used in) operating activities -24,221,337 -22,516,713 -24,034,662 -24,691,455 -22,706,088 -23,357,615

CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sale of non-current physical assets 2,012 550Purchase of non-current physical assets -540,394 -450,000 0 -750,000 3 -400,000 -500,000

Net cash provided by/(used in) investing activities -538,382 -450,000 550 -750,000 -400,000 -500,000

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from borrowingsRepayment of borrowings -65,489 -66,000 -59,512 -60,000 -54,000 -51,000Other proceedsOther repaymentsFinance lease repayment of principalNet cash provided by/(used in) financing activities -65,489 -66,000 -59,512 -60,000 -54,000 -51,000

Net increase/(decrease) in cash held and cash equivalents -927,484 164,601 -597,531 -2,005,114 483,240 -111,686Cash and cash equivalents at the beginning of the period 4,605,306 3,014,475 3,677,821 3,080,290 1,075,176 1,558,416

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 3,677,821 3,179,076 3,080,290 1,075,176 1,558,416 1,446,729

Notes

45

KEY PERFORMANCE INDICATORS DESIRED OUTCOMES The provision of vocational education and training services to meet the community and industry training needs.

EFFECTIVENESS INDICATORS The effectiveness indicators measure the achievement of vocational education and training in meeting community and industry needs via student and graduate satisfaction, labour force status of graduates and profile achievement.

TAFEWA STUDENT SATISFACTION SURVEY The 2008 TAFEWA Student Satisfaction Survey is administered annually on the behalf of the Department of Education and Training by Colmar and Brunton. The key focus is to attain an understanding of students training requirements and to measure the quality of the delivery of training and services provided by Pilbara TAFE. The survey approach is a mass market mail out to a random sample of students who had undertaken training either in the first or second semester of the corresponding reference period. The option to complete the survey on-line or via the use of computer assisted telephone interviewing was also provided. STUDENT SATISFACTION RATING: EFFECTIVENESS INDICATOR The overall student satisfaction rating expresses the number of 'satisfied' and 'very satisfied' respondents. The results provide an overall expression of how satisfied students are with various services provided by the College.

2005 2006 2007 2008 2008

Targets

Pilbara TAFE

83%(1) 84% 79% 86% 87%(2)

Western Australia

85% 86% 87% 85% 86% (3)

Source: (1) Department of Education and Training, TAFEWA Student Satisfaction Survey. (2) College Executive Committee minute Pilbara TAFE 15 April 2008 (3) p. 41 Department of Education Annual Report 2008 Of the 2082 potential population identified, where 1275 individuals were contacted, 272 useable surveys were returned, representing a response rate of 21%. The overall student satisfaction rate for 2008 was 86% with a relative sampling error of 2% at a +/-3.9% confidence level.

47

In 2008, the College Executive Group identified four key deficit areas from the 2007 survey:

1. Student experience (improving course information services)

2. Teaching/Learning (improving the communication to students on how they were going to be assessed)

3. Learning Resources (improving the quality of learning resources)

4. Facilities (improving the learning environment). At the beginning of 2008, the College established several strategies to address these points with the goal of meeting or improving on the state average (which was 87% in 2007). These were:

1. Training for customer service staff on product knowledge and course information

2. Making assessment guides available to all students and ensuring the content was understood – this included building in strategies to address cultural differences in learning modes to ensure Indigenous students were fully aware of requirements

3. Using innovations from West One such as Tool Boxes and sharing information with other providers to improve quality of College learning resources

4. Concentrating on tidying up the local environment by fast tracking maintenance issues

The focus on these areas and their subsequent improvement can be directly attributed to the increase in Pilbara TAFE’s student satisfaction rating from 79% in 2007 to 86% in 2008 (which is 1% higher that the state average of 85% in 2008).

48

STUDENT OUTCOMES SURVEY The Student Outcomes Survey is conducted on the behalf of National Centre for Vocational Education Research (NCVER) by I-view Pty Ltd. The aim of the survey is to measure vocational education and training students' employment, further study and the opinions of the training undertaken. Questionnaires were sent to a stratified (field of education, sex and age), randomly selected sample of Pilbara TAFE graduates, who had successfully completed a qualification in the previous reporting period. The graduate achievement is a key performance indicator that measures the extent to which Pilbara TAFE Graduates have wholly or partly achieved their main reason for undertaking the course.

2005 2007

Pilbara TAFE

88% 88.2%

TAFE WA 87% 87.4%

TAFE Australia

88% 89.1%

Note: The College is unable to provide data for 2004, 2006 and 2008 as statistically valid College level data was not available. NCVER intends to conduct surveys with appropriate sample design to produce statistically reliable College level data in alternative years commencing from 2005.

49

GRADUATES IN EMPLOYMENT The proportion of graduates in employment is a key performance indicator, which shows the extent to which the College is providing relevant quality training that improves student employability. The performance indicator shows the proportion of graduates responding to the NCVER Student Outcomes Survey who were in paid employment as at 25th May, the year following graduation.

2005 2007

Pilbara TAFE

86% 89.7%

TAFE WA 78% 83%

TAFE Aust 79% 80.2%

Source: Student Outcome Survey, National Centre for Vocational Education Research (NCVER) Note: The College is unable to provide data for 2004, 2006 and 2008 as statistically valid College level data was not available. NCVER intends to conduct surveys with appropriate sample design to produce statistically reliable College level data in alternative years commencing from 2005.

COST PER STUDENT CURRICULUM HOUR (SCH) EFFICIENCY INDICATOR This is a measure of the extent to which the college is able to efficiently utilise resources for the delivery of vocational education and training. The overall cost per SCH is an efficiency measure that shows the aggregate unit cost of delivery output per SCH based on the delivery costs (Total Cost of Services) as detailed in the Financial Statements.

2005 2006 2007 2008 2008

Target

Pilbara TAFE

$45.08 $47.49 $47.93 $39.49* $34.40*

*The variance between 2007 and 2008 is explained by the change of formula endorsed for TAFEWA colleges, which divides the Total Cost of Services by the Total SCH, which includes non profile hours, rather than previous years which divided the Total Cost of Services by profile hours only. Furthermore, the variance between the target of $34.40 and the achieved $39.49 is explained by the increase in cost of employee housing (GROH) as well as the increase in employee benefits (salary increase in 2008).

50

ACHIEVEMENT OF THE 2008 COLLEGE PROFILE This performance indicator reports the effectiveness of the College in meeting Delivery and Performance Agreement targets, enabling customer needs to be achieved, through which Pilbara TAFE is resourced to deliver courses under Government, purchased funding guidelines. This purchased delivery took into consideration the needs of the local community, individuals and the training plans of industry. The diversity of the delivery indicates the extent to which the College has met its strategic training needs of the State as defined in the State Training Profile as well as additional delivery provided under a fee-for-service arrangement. Performance Agreement targets, enabling customer needs to be achieved, through which Pilbara TAFE is resourced to deliver courses under Government, purchased funding guidelines. This purchased delivery took into consideration the needs of the local community, individuals and the training plans of industry. The diversity of the delivery indicates the extent to which the College has met its strategic training needs of the State as defined in the State Training Profile as well as additional delivery provided under a fee-for-service arrangement.

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Industry Groups

Industry Groups Profile Analysis for Pilbara TAFE

WADTE Group Title 2007

Actuals

2008 Planned Profile

2008 Actuals

Variance

% 01A - Recreation Sports and Entertainment -

-

-

01B - Visual and Performing Arts

27,056

31,200

17,345

55.6%

02A - Automotive

20,902

30,960

20,504

66.2%

03A - Building and Construction

80,073

81,600

139,759

171.3%

04A - Community Service Workers

39,148

45,920

33,698

73.4%

04B - Education and Childcare

52,332

74,750

67,575

90.4%

04C - Health

8,029

9,000

6,090

67.7% 05A - Finance Insurance Property Service Workers

4,067

2,000

5,289

264.5%

09A - Engineering and Drafting

14,630

10,600

23,900

225.7%

09B - Metal and Mining

125,551

124,790

129,716

103.9%

10B - Forestry, Farming and Landcare

5,841

17,800

4,325

24.3%^

10D - Horticulture

10,830

12,000

6,804

56.7%

12A - Personal Service

5,060

9,200

9,372

101.9%

13A - Cooking

9,070

12,700

8,714

68.6%

13B - Hospitality

3,275

5,900

5,382

91.2%

13C - Tourism

2,605

2,200

3,390

154.1% 14A - Transport Trades, Storage and Associated

6,800

7,600

9,440

124.2%

15A - Electrical and Electronic Engineering - 4,000 -

-

15B - Electrical Trades

39,379

48,600

45,727

94.1% 16A - Accounting and Other Business Services

28,920

9,000

13,890

154.3%

16B - Management

32,670

38,400

37,230

97.0%

16C - Office and Clerical

54,700

74,800

50,295

67.2%

17A - Computing

20,098 25,450

8,780

34.5%

18A - Science and Technical Workers

22,314

23,000

19,718

85.7%

19B - Adult Literacy/ESL

36,595

42,100

31,515

74.9%

19D - Miscellaneous

19E - Targeted Access and Participation Courses

37,046

39,110

26,585

68.0%

Total Profile Delivery

686,991

782,680

725,043

92.6%

Non Profile Delivery 175,168

College Total Delivery 900,211

52

Definition: The table indicates the quota and actual achievement of SCH in the profiled Department of Education and Training Industry Group categories. The classification of these Industry Groups is based on the occupation or outcome the course is intended to serve, and highlights the College’s performance in achieving industry delivery targets. Derivation: DPA data represents the actual achievement of SCH in respective years. Planned data is obtained from the DPA, and actual SCH from the College Unified Enrolments System (UE)). Non-profile delivery SCH is the actual SCH count of enrolments not funded under the DPA in UE. These are Fee-For-Service programs that are delivered to meet local industry and community demands for specialised training. Variances in delivery by more than 10% are explained by a staff shortage among lecturers and their migration to better paid jobs in industry (WADTE Groups 1A, 4C, 15A). In WADTE Groups 2A, 4A, 4C, 10B, 10D, 13A, 16C, 17A, 18A, 19B, 19E, the variances are explained by low demand for training from client groups due to high employment ratios and high remuneration among the Pilbara workforce. The overachievement in categories is explained by a variety of factors. Chief amongst these is the fact that profile planning was undertaken in September 2007, which did not equate to actual demand months later due to fluctuating economic circumstances. For example in WADTE Group 3A, there was a spike in Work Ready programs in Building & Construction during the year, which were expanded to meet demand from the resources industry. Measurement B This performance indicator shows the percentage of student curriculum hours (SCH) achieved for activities as contracted with the Department of Education and Training for vocational education and training delivery through the Delivery and Performance Agreement. Profile Achievement = Actual Delivery and Performance Agreement SCH Achieved/ Target SCH contained within Delivery and Performance Agreement

2004 Actual

2005 Actual

2006 Actual

2007 Actual

2008 Actual

2008 Target

NA 99% 93% 87% 93% 100% Source: Pilbara TAFE Delivery and Performance Agreement.

Derivation: DPA data represents the actual achievement of SCH in respective years. Please Note: Data previous to 2007 for Actual Profile (SCH) represents commencements, due to changes in reporting procedures Actual Profile (SCH) from 2007 signifies end of study. The significance of the change has been to move from recording student data from the date they commence to recording the data to date students' study is completed. The overall shift in total value in SCH between the two methods is minimal.

53

Pilbara TAFE 1300 304 244 Karratha Campus Dampier Road, Karratha Ph: (08) 9159 6700 Fax: (08) 9159 6711 South Hedland Campus Hamilton Road, South Hedland Ph: (08) 9158 9400 Fax: (08) 9172 3560 Pundulmurra Campus Parker Street, South Hedland Ph: (08) 9158 5600 Fax: (08) 9158 5648 Newman Campus Kalgan Drive, Newman Ph: (08) 9158 2300 Fax: (08) 9177 8185 Tom Price Campus Stadium Road, Tom Price Ph: (08) 9143 8800 Fax: (08) 9143 8888 Minurmarghali Mia Campus Fraser Street, Roebourne Ph: (08) 9182 0350 Fax: (08) 9182 1222 Onslow Centre Second Avenue Ph: (08) 9184 6401 Fax: (08) 9184 6401 Pannawonica Centre Deepdale Road, Pannawonica Ph: (08) 9184 1354 Fax: (08) 9184 1946 Paraburdoo Centre DeGrey Road Paraburdoo Ph: (08) 9189 5786 Fax: (08) 9189 5997 Wintamurra Training Centre, Jigalong Ph: (08) 9175 7004 Fax: (08) 9175 7092

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2008 ar draft pilbara tafe - parliament of western australia · executive summary managing...

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