kimberley training institute - parliament of western … · people with a non-english speaking...

2011

Annual Report

Kimberley Training Institute Annual Report 2011

2

Contents

Statement of Compliance ________________________________________________ 4

1. Overview __________________________________________________________ 5

1.1 Message from the Chairman and Managing Director ___________________ 5

1.2 Executive Summary _____________________________________________ 7

1.3 Operational Structure ___________________________________________ 10

1.3.1 Governing Council ________________________________________________________ 10 1.3.2 Kimberley Training Institute Management Structure ______________________________ 11 1.3.3 Vision, Mission and Values _________________________________________________ 12 1.3.4 Campus Locations ________________________________________________________ 13

1.4 Performance Management Framework _____________________________ 14

1.4.1 Strategic Plan 2010-2012 ___________________________________________________ 15

2. Agency Performance _______________________________________________ 17

2.1 Highlights at a Glance ___________________________________________ 17

2.2 Strategic Objective 1 – Outstanding Student Experience ______________ 19

2.3 Strategic Objective 2 – Effective Industry Relationships and Partnerships 21

2.4 Strategic Objective 3 – Sustainability, Capability and Capacity _________ 25

2.5 Strategic Objective 4 – Community and Social Responsibility __________ 28

3. Significant Issues Impacting the Agency_______________________________ 31

3.1 Factors Affecting Delivery _______________________________________ 31

3.2 Trends Affecting Delivery ________________________________________ 32

4. Disclosure of Legal Compliance ______________________________________ 34

4.1 Financial Statements ____________________________________________ 36

4.1.1 Statement of Comprehensive Income for the Year Ended 31 December 2011 _________ 37 4.1.2 Statement of Financial Position as at 31 December 2011 __________________________ 38 4.1.3 Statement of Cash Flows from the Year Ended 31 December 2011 __________________ 39 4.1.4 Statement of Changes in Equity for the Year Ended 31 December 2011 _____________ 40 4.1.5 Notes to the Financial Statements for the Year Ended 31 December 2011 ___________ 41 4.1.6 S40 Submission – Statement of Comprehensive Income __________________________ 72 4.1.7 S40 Submission – Balance Sheet ____________________________________________ 73 4.1.8 S40 Submission – Changes in Equity Statement ________________________________ 74 4.1.9 S40 Submission – Cash Flow Statement _______________________________________ 75

4.2 Detailed Key Performance Indicators Information ____________________ 76

4.2.1 Effectiveness Indicators ____________________________________________________ 77 4.2.2 Efficiency Indicator ________________________________________________________ 82

4.3 Ministerial Directives ____________________________________________ 83

4.4 Other Financial Disclosures ______________________________________ 83

4.4.1 Pricing Policies ___________________________________________________________ 83 4.4.2 Capital Works ____________________________________________________________ 84


3

4.5 Governance Disclosures. ________________________________________ 85

4.6 Other Legal Requirements _______________________________________ 86

4.6.1 Advertising ______________________________________________________________ 86 4.6.2 Disability Access and Inclusion Plan Outcomes _________________________________ 87 4.6.3 Compliance with Public Sector Standards and Ethical Codes _______________________ 88 4.6.4 Equal Employment Opportunity ______________________________________________ 89 4.6.5 Record Keeping Plans _____________________________________________________ 89 4.6.6 Freedom of Information ____________________________________________________ 90 4.6.7 Public Disclosures ________________________________________________________ 90

4.7 Government Policy Requirements _________________________________ 90

4.7.1 Occupational Safety, Health and Injury Management _____________________________ 90

List of Acronyms _____________________________________________________ 92


4

Statement of Compliance

Hon. Peter Collier MLC Minister for Training and Workforce Development

In accordance with section 61 of the Financial Management Act 2006, we hereby submit for your information and presentation to Parliament, the Annual Report of Kimberley Training Institute for the financial year ended 31 December 2011. The Annual Report has been prepared in accordance with the provision of the Financial Management Act 2006 and the Vocational Education and Training Act 1996. Niegel Grazia Karen Dickinson Chairman, Governing Council Managing Director Kimberley Training Institute Kimberley Training Institute Date: 6 March 2012 Date: 6 March 2012 Contact Details Kimberley Training Institute P O Box 1380 68 Cable Beach Road BROOME WA 6725 Internet: www.kti.wa.edu.au Email: [email protected] Phone: 1300 996 573 Fax: (08) 9192 9111

http://www.kti.wa.edu.au/

mailto:[email protected]


5

1. Overview 1.1 Message from the Chairman and Managing Director It is our pleasure to present the Kimberley Training Institute‟s (KTIs) Annual Report for 2011. 2011 has been an incredible year for the Institute with phenomenal growth and all Key Performance Indicators (KPIs) being met or exceeded. The Institute‟s total Student Curriculum Hours (SCH) grew by 37% compared to 2010. KTIs impressive growth can be attributed to the focus on flexible delivery, Recognition of Prior Learning (RPL), delivery to skills shortage areas and higher level of qualifications. The Institute achieved the highest level of student satisfaction for the State at 95.9% compared to the average of 88.4%. This was a remarkable achievement given the substantial growth and significant increased participation of all special needs groups; 21% increase in participation by Aboriginal students; 30% increase in participation from people with a non-English speaking background (NESB) and 26% increase in participation of students with a disability. KTIs achievements would not have been possible without sound governance. Improved governance and increased accountability contributed to a stronger financial position in 2011 which paved the way for investing in cutting edge technology. In late 2010 the Governing Council made a significant investment in software and hardware for the Broome Maritime Simulation Centre. In early 2011 the new Transas system was launched which enabled the Centre to strengthen its reputation as a leading Australian maritime simulation provider. The Centre is now providing simulation services in maritime research and port development to an International market. High profile clients include; Beltship (UK), BHP, Chevron, Newcrest Mining, Rio Tinto, Woodside and WorleyParsons. KTI has continued to expand its strategic partnerships with a number of Industry partners. These partnerships have strengthened the Institute‟s ability to deliver a broader and more flexible range of training products. An example of such a successful partnership was KTI working alongside Argyle Diamond Mine to deliver the “Qualifications for Life” project. This project identified Argyle Diamond Mine employees‟ eligibility for a qualification through the RPL process. Other collaborations that satisfied industry needs included the KTI and Ertech partnership that supported eight students transition from training to employment. The Institute delivered training at the Broome North site in partnership with Ertech and Landcorp. The Fortescue Metals Group (FMG) and Downer EDI partnership resulted in 24 Certificate III in Civil Construction graduates being employed at the Cloudbreak Mine in the Pilbara. KTI builds industry and community partnerships to facilitate access to a skilled workforce.


6

KTI services an area of 420,000 square kilometres, with six campuses and just over 4,000 students (of whom 57% are Aboriginal). Innovative training programs are delivered in partnership with many key Aboriginal organisations across the Kimberley and one such program is the Kimberley Ranger Program. The Kimberley Ranger Program involves KTI and the Kimberley Land Council (KLC) working in partnership to facilitate ranger activities in communities. KTI delivers the training in Conservation and Land Management and KLC support the cultural and heritage development on country. This program employs more than 70 rangers and experiences high levels of student participation. In the aftermath of floods that destroyed the Warmun Community, KTI worked alongside the East Kimberley Community Development Employment Programs (CDEP) to provide construction training to a team of Warmun Community members. The Program engaged 15 participants in a 30 week program. This „hands on‟ experience assisted community members to rebuild their community and increase their employment skills. There are numerous examples of extraordinary efforts to deliver flexible and responsive training to industry and isolated communities. KTI staff are committed to ensure that training is delivered to the highest standard and meets the requirements of its students. The addition of new facilities in Wyndham, Kununurra and Fitzroy Crossing provided an enhanced learning environment for students across the Kimberley. These improvements have enabled KTI to deliver a broader range of courses at these campuses. Our staff are important and the retention of staff is imperative for the ongoing success currently experienced at KTI. In 2011 KTI doubled its investment in professional development activities. This contributed to highly skilled staff who are committed to the priorities and vision of the Institute. Our Workforce and Diversity Plan 2011-2015 will continue to provide direction in attraction, retention and recruitment of staff. It has been an outstanding year of achievement culminating in a repositioning in the market and a name change. The name, Kimberley Training Institute was launched by the Minister for Training and Workforce Development in September. The rebranding and repositioning of KTI has seen it emerge as a bolder, smarter and more agile organisation that is clear about its vision and purpose. We would like to thank all the outgoing Governing Council members with a special thanks to Ned McCord the former Chairman for his work over the years. It is also with great pleasure we welcome the new members to the Governing Council. To all the staff at Kimberley Training Institute who worked tirelessly in 2011 thank you for your hard work, passion and dedication. Niegel Grazia Karen Dickinson Chairman, Governing Council Managing Director


7

1.2 Executive Summary Kimberley Training Institute‟s vision is to lead in the delivery of innovative, vocational education and training programs and services that are flexible, relevant and responsive to the needs of community and industry. In 2011 the Institute demonstrated that it is realising its vision with extraordinary efforts producing extraordinary results. The Institute experienced its best ever SCH with a remarkable 37% growth achieved in one year. This growth positioned the Institute as one of the fastest growing State Training Providers in Australia. The growth was matched by an increase in its flexibility, relevance, responsiveness and quality of service delivery. The Institute achieved the highest level of student satisfaction in Western Australia, met or exceeded all KPIs and managed to do this while improving its financial position. Some of the highlights include:

43% growth in Profile delivery from 2010 exceeding its original 2011 Profile target of 550,000. (The 2011 section 40 estimates were increased from 540,000 to 703,519 SCH an increase in the estimates by 29%).

37% increase in total SCH compared to 2010. 95.9% student satisfaction compared to the State average of 88.4%. 35% of overall delivery occurred in the Skills Shortage areas, which represents

a 98% achievement of a target that increased significantly during 2011. 120% increase in students obtaining RPL compared to 2010. 103% increase in flexible delivery compared to 2010. 5% increase in Aboriginal students studying at Certificate III and higher

compared to 2010. The 2011 target was exceeded by 89%. 68% increase in students enrolled in Certificate IV and higher qualifications

compared to 2010. 1% improvement in the module load completion rate (MLCR). This represents

a considerable achievement considering the substantial increase in delivery compared to 2010.

Significant increases in all special needs groups. 21% increase in Aboriginal students; 30% increase in NESB and 26% increase of students with a disability.

The Institute‟s available cash reserves rose to $2,138,504 in 2011 from $897,237 in 2010 due to a cash retention financial strategy.

Overall deficit also decreased from $2,719,675 to $322,911. Cost per SCH decreased significantly from $43.48 in 2010 to $37.06 in 2011,

which was lower than the target of $39.22. This was due to a concerted strategy to control expenditure and the achievement of some economies of scale.

Total cost of services increased to $28,737,486 in 2011 from $24,552,727 in 2010 (+17%) which is a significant lower increase than the 37% increase in SCH.

Service Appropriation increased from $18,517,129 in 2010 to $24,042,882 in 2011 (29%), due to the negotiated increase in profile delivery.

Non Current assets increased to $47,000,714 in 2011 from $35,260,078 in 2010 due to negotiations with the Valuer General in regards to land and buildings revaluations and new infrastructure.


8

In 2011 staff numbers increased some 20% to 151.15 (FTE), less than the 37% increase in delivery for the year.

The Aboriginal Education Employment and Training Committee (AEETC) developed a new handbook and revamped the Aboriginal Training Strategy.

Support services for Aboriginal students, who constitute 57% of the student cohort was strengthened. Additional Aboriginal positions were created to support students and Aboriginal lecturer cadet positions created.

Significant increased investment in professional development activities enabled a more innovative and customer focused approach. Furthermore, this contributed to attraction, retention and recruitment of quality staff.

New facilities were built at Wyndham, Kununurra and Fitzroy Crossing enabling a broader scope of courses to be delivered in a positive learning environment for staff and students.

Another highlight for the year was the growth and success of the Access - Language, Literacy, Numeracy and Engagement Programs. The Institute‟s Open Learning Centres proved to be a very successful way of supporting students to strengthen their language, literacy and numeracy skills (LLN). The Indigenous Tutorial Assistance Scheme (ITAS) supported 76 Aboriginal students working toward vocational qualifications. Workplace English Language and Literacy (WELL) projects involved collaborations with Aged Care in Derby, Argyle Diamond Mine and the Kimberley Ranger Program. Youth engagement programs at Broome, Derby and Fitzroy Crossing provided a valuable alternative to youth who had disengaged from school and not in training or employment.

A number of strategies have contributed to the Institute‟s growth, they included improving governance structures, building the Institute‟s reputation, forging strategic partnerships and aligning the courses offered to what Industry and communities want. Sound governance strategies included completing the relocation of Corporate Services from Kununurra to Broome, introducing a portfolio management structure, refining and revamping committees and how they were conducted. The structural changes facilitated increased accountability and transparency across the organisation leading to improved efficiency and effectiveness. This improved monitoring of outputs, included services delivered to students to ensure KTI managers knew what was expected and stayed on budget. To assist managers in monitoring their accountabilities, reporting mechanisms (in particular in relation to expenditure against budgets and delivery, SCH and performance) were improved to be more elementary and user-friendly. Coupled with the enhanced reports were information sessions and regular meetings to discuss results progressively throughout the year. Governance in regard to Occupational Safety and Health (OSH) and Risk Management was strengthened during 2011 with both highlighted as priority areas. The OSH Committee is very active and has developed an OSH action plan with key priorities identified. These are monitored through the Committee and regular update reports presented to the Executive and Governing Council.


9

In December a Risk Management workshop was undertaken by RiskCover to raise the awareness and understanding by managers of risk assessment, analysis and management. All KTI committees have Risk as a standing item on their agenda. A major highlight for the year that contributed to building the Institute‟s reputation was the renaming/rebranding of Kimberley TAFE to Kimberley Training Institute. The Minister for Training and Workforce Development made the announcement at a ceremony at the Broome Campus in September. The rebranding and repositioning of Kimberley Training Institute has seen it emerge as a bolder, strategic and more agile organisation. Forging strategic partnerships with Industry and communities was achieved to ensure training was relevant, timely and flexibly delivered. Partnerships were fostered with high profile Industry partners, other private and public Registered Training Organisations (RTOs), communities, Job Services Australia agencies and not for profit and Government organisations. The range of partnerships highlights the Institute‟s agility in forming these partnerships to meet Industry requirements. In 2011 some of the Institute‟s major partnerships included:

The Broome Maritime Simulation Centre. The purchase of hardware and software infrastructure has enabled the Institute to provide high level specialist maritime simulation and training that is competitive on a world stage. The Centre has built on its previous reputation to now be recognised as one of Australia‟s leading maritime simulation providers for research and port development. Some high profile clients include Beltship (UK), BHP, Chevron, Newcrest Mining, Rio Tinto, Woodside and Worley Parsons.

The Argyle Diamond Mine and KTI “Qualifications for Life” project. This project identified Argyle Diamond Mine employees‟ eligibility for a qualification through the RPL process. Qualification areas include surface extraction, resource processing and resources and infrastructure work preparation.

VET in Schools (VETiS) Program. The VETiS Program was extremely popular and successful throughout Kimberley schools in 2011. Over 30 courses were delivered to students in 10 schools with 74 students graduating.

Kimberley Ranger Program. The Kimberley Land Council (KLC) and KTI worked in partnership to deliver training in Conservation and Land Management on country.

The industry and business landscape of the Kimberley region is set to change dramatically over the coming years. The Kimberley is currently identified as the second fastest growing region in the State and these developments will have a significant impact on the Institute‟s future delivery. In 2011 the Institute reviewed and updated its Strategic Plan to make sure it remained focused on where it wants to be and how it will get there in the future. This report provides a summary of achievements for 2011. It will highlight that Kimberley Training Institute has had an outstanding year and is well on its way to delivering innovative vocational education and training programs.


10

1.3 Operational Structure

1.3.1 Governing Council Niegel Grazia Chairman Karen Dickinson Managing Director Greg Moore Christopher Mitchell Peter Biber Mick Unger

Ian Trust Deputy Chair Glennis Bibra Antoine Bloemen Patricia McKay Anthony Proctor Glen Chidlow


11

1.3.2 Kimberley Training Institute Management Structure

(x4)


12

1.3.3 Vision, Mission and Values Our Vision Kimberley Training Institute operates in one of the most unique and challenging environments and in one of the world‟s last great wilderness locations. Kimberley Training Institute will lead the region in the delivery of innovative, vocational education and training programs and services that are flexible, relevant and responsive to the needs of community and industry. Our Mission To provide lifelong, flexible, quality learning experiences for individuals, industry and communities through customised vocational training. Our Values At Kimberley Training Institute we provide our programs and services from a foundation of shared values. Our values are:

Honest and open communication. Respect for the traditional lifestyles, cultural backgrounds and different

learning styles of the people in our region. Responsive to the needs of our clients. Commitment to and recognition of the strengths, abilities and values of our

staff. Commitment to the empowerment of clients through quality education. Collaboration and partnership with others to achieve learning and training

outcomes for industry, individuals and communities. Encouragement for innovation and professionalism in our unique environment.


13

1.3.4 Campus Locations Kimberley Training Institute has six campuses located across the 420,000 square kilometres of the Kimberley in Broome, Derby, Fitzroy Crossing, Halls Creek, Kununurra and Wyndham.


14

1.4 Performance Management Framework Kimberley Training Institute has aligned its Strategic Plan with Training WA: Planning for the Future 2009-2018. Agency performance will be discussed against Kimberley Training Institute‟s four broad strategic objectives.

State Government Goals

Training WA: Planning for the Future

A skilled

workforce

A contemporary

apprenticeship

system

Individual

participation

in training

Support for

regional

communities

A vibrant and

diverse

training

market

Training

system

capability

and capacity

Kimberley Training Institute Strategic Plan 2010 – 2012

Outstanding Student

Experience

Effective Industry

Relationships &

Partnerships

Sustainable

Capability &

Capacity

Social Responsibility


15

1.4.1 Strategic Plan 2010-2012 Kimberley Training Institute‟s Strategic Plan has four broad strategic objectives and these are described below. Agency performance will be discussed against these four broad strategic objectives.

Outstanding Student Experience

KTI is renowned as the place to study in the Kimberley.

Literacy and numeracy is a key component in all delivery and is available to all students.

Articulation pathways are available to assist the individual‟s progression to higher levels of training.

Improve retention and completion rates for apprentices.

Increase the number of Certificate IV and Diploma level courses offered.

Continue to build and promote a quality apprenticeship system that is flexible and responsive to both industry and apprentice needs.

The quality of delivery and assessment will take into consideration the impact on broader health and social issues that improve students‟ participation and retention rates.

A customer focused approach for students and staff is nurtured.

Increase flexible and blended delivery and assessment options including Recognised Prior Learning and e-learning.

Provide holistic student support services.

Link training to employment.

Effective Industry Relationships and Partnerships

Industry and community partnerships are developed and sustained to align training delivery to local, State and federal strategic priorities.

Effective networks and strategic partnerships with private and public providers are developed and nurtured.

Strengthen training partnerships with all stakeholders including schools, industry, other State Training Providers, Employment Services Providers, private Registered Training Organisations and universities to ensure training delivery is appropriate and/or customised.

Alignment of the Institute‟s scope with industry skill shortage areas.

Provide training products that are agile and adaptive to meet student and industry needs.

Implement strategic marketing and communication approaches that target specific audiences.

New business opportunities are identified and developed as a result of partnerships.

Industry recognises KTI as a leading provider of training.


16

Sustainability, Capability and Capacity

KTI has a reputation as a great place to work and one that cares for its staff.

Training facilities and equipment supports a quality learning environment.

Develop and implement a Workforce Development and Diversity Plan.

Ensure the Institute‟s business processes and operating systems are contemporary.

Review and update policy, procedure and business rules prioritising Human Resources, enrolment systems, IT and finance to ensure improved effectiveness and efficiency.

Health and safety in the workplace are a priority for staff, students and management.

Further align VET delivery in schools with industry skills shortage areas. Enhance the delivery of career information to high school teachers, students and parents to better inform their choices and create smooth transitional pathways to KTI.

Seek new sources of revenue and ways to lower operational costs.

Attract and support multijurisdictional, 457 visa holders and international students.

Continuous quality improvement is embedded into all Corporate and Training Directorate activities.

The Institute‟s infrastructure supports training and assessment requirements, now and into the future.

Community and Social Responsibility

Develop an Aboriginal Workforce Development plan which increases career opportunities across all areas of the Institute.

Provide youth engagement programs that support work readiness and vocational training programs.

Consult and develop innovative training models to suit Aboriginal learning styles that improve participation, retention and completion rates.

Provide pathways to strengthen training participation by youth, people with disabilities and people from culturally diverse backgrounds.

KTI will support communities with training to support their social and economic aspirations.

Increase the participation of local migrants‟ access to English as a Second Language (ESL) programs and vocational training and support.

Deliver culturally appropriate and practical training that impact on broader health and social needs.

Align training to regional development priorities.

Develop a Greens Skills policy on sustainability practices.

Create vibrant and dynamic Institute campus environments.


17

2. Agency Performance 2.1 Highlights at a Glance

Achieved Training Hours Kimberley Training Institute increased its total SCH by 37% compared to 2010.

Skills Shortage Skills Shortage delivery accounted for 35% of overall delivery under Profile. The target of 224,650 SCH was exceeded by 10%.

Students Enrolled in Flexible Delivery Flexible delivery substantially increased by 103% compared to 2010. For the past three years, the Institute has seen a significant increase in flexible delivery and this trend is expected to continue.

Students Enrolled in Higher Level Courses A 68% increase in students enrolled in Certificate IV and higher qualifications compared to 2010. For the last three years, the Institute has seen a significant growth in students undertaking higher level qualifications and this trend is expected to continue.


18

Module Load Completion Rate (MLCR) The Institute‟s MLCR has remained relatively steady over the last three years. It was down by only 1% in 2010, which is a considerable achievement considering the substantial increase in delivery compared to 2010.

Certificate III+ Aboriginal Students Certificate III and higher, Aboriginal student enrolments increased by 5% compared to 2010. The 2011 target was exceeded by 89%.

Students with Special Needs In 2011, Kimberley Training Institute saw a substantial increase of 30% in NESB (Non-English Speaking Background) students in comparison to 2010. In addition, the Institute experienced a 26% increase compared to 2010, in students with a disability. Furthermore, the Institute had an increase of 21% in ATSI (Aboriginal and Torres Strait Islander) students compared to 2010.

Students Obtaining RPL Since 2008, Kimberley Training Institute has seen a substantial increase in students obtaining RPL. In 2011, the Institute had an increase of 120% in students obtaining RPL, over 2010.


19

2.2 Strategic Objective 1 – Outstanding Student Experience In 2011 KTI experienced a phenomenal level of success with every KPI being met or exceeded. In summary, the key ingredients for the Institute‟s success included an organisational restructure (the relocation of Corporate Services to Broome was completed), the introduction of a portfolio management system, review and enhancement of committees and their functioning, a realignment of scope to embrace regional and Industry needs, a campaign to improve customer service, forging and growing strategic partnerships, supporting staff with professional development opportunities and a focus on quality training delivery. Student Satisfaction The WA Student Survey 2011, developed by DTWD compares each State Training Provider‟s performance. Kimberley Training Institute achieved the State‟s highest level of student satisfaction at 95.9% compared to the State average of 88.4%. The emphasis the Institute placed on customer service, the relationship staff built with students, the quality of the lecturers and their flexibility in delivery have all contributed to this achievement. It is worth noting that the survey identified the flexibility of study options (82%) compared to the State average of 76% as a great strength. Higher Level Qualifications All KPIs were exceeded with a substantial increase in Certificate IV and Diploma students enrolling and completing their studies. 526 students enrolled in the higher level qualifications compared with 314 in 2010, a 68% increase. Recognition of Prior Learning (RPL) RPL continued to dramatically increase and doubled its delivery on what was achieved in 2010. 342 students obtained an RPL, 120% increase compared to 2010. In collaboration with Argyle Diamond Mine the „Qualifications for Life‟ project was born. The aim of „Qualifications for Life‟ was to identify Argyle Diamond Mine employees‟ eligibility for a Certificate II or Certificate III qualification through the RPL process. Qualification areas include surface extraction, resource processing and work preparation in resources and infrastructure. Kimberley Training Institute worked closely with qualified industry experts at Argyle Diamond Mine to build the foundation for the RPL process for Surface Extraction operators. A successful pilot program was conducted with a range of multi-skilled operators at varying levels of experience, before a roll out to all panel groups of approximately 70 participants. The process has provided an opportunity for this industry to review industry training and assessment practices as well as recognise existing skills of personnel and promote workers‟ morale.


20

Apprentices and Trainees Although the apprentice and trainee numbers did not increase substantially the completion rate increased. The increased completions, albeit small, can be attributed to the support staff who regularly visit the apprentices, trainees and supervisors in the workplace. Streamlining of internal processes and an increased attention to workplace delivery and assessment with an emphasis on delivering greater customer focused service will be further harnessed in 2012 to give apprentices and trainees the best possible opportunity to succeed.

Flexible Delivery Flexible delivery had a phenomenal increase with 1,960 students receiving flexible delivery which constitutes approximately half of KTI‟s students. This reflects a 103% increase, in comparison to the 2010 delivery figures. With six regional campuses covering an area of 420,000 square kilometres flexible delivery occurs on a daily basis. Some terrific examples of this include:

Cultural Tourism being delivered in Kalumburu, Cone Bay, Gibb River Road and some very remote locations throughout the Kimberley. Similarly, Tourism and Retail Travel stretched across the Kimberley to deliver training in many remote communities. See above photo – a make do classroom on country.

The Kimberley Ranger Program delivering training to rangers on country

throughout the region. KTI provides training to eight ranger groups across the Kimberley.

Retention and Completion For the past five years KTI has continually improved its modular load completion rate. In 2011 KTI achieved it highest MLCR ever at 75% which is a remarkable achievement given the geographic isolation, the weather, the levels of poor literacy and numeracy and the contextual social disadvantage of KTI students.


21

Skills in Demand The original skills shortage target for 2011 was 98,450 SCH which was increased in the May and September Addendums to 247,708 SCH. At the end of 2011 243,299 SCH was achieved which was an impressive increase on the original planned delivery. Skills shortage delivery constitutes 35% of the Institute‟s overall delivery. Key skills shortage areas included:

Metal & Mining Education & Childcare Community Service Workers Building & Constructions

Hospitality Health Cooking

Articulation Pathways Articulation pathways have been secured for students graduating from Certificate IV and Diploma programs with Curtin University, Edith Cowan University and Charles Darwin University. Link Training to Employment KTI works closely with the Job Services Australia (JSA) agencies to maximise job seekers participation in training and successful graduation into employment. A good example of a collaborative effort that had great outcomes involved JSA, Job Futures - Kimberley Employment Services (KES). KTI delivered the Certificate II in construction and KES picked up the students, dropped them at the campus and returned them home each day. KES also provided regular mentoring to the students. Almost all graduates of the courses secured employment. E-learning and Use of Technology In September the Institute employed an e-learning Coordinator to progress the use of e-learning technologies. The Institute experienced a good level of success with its online OSH and IT programs. The Institute‟s use of social media including the use of Facebook and Twitter is proving to be not only an effective marketing tool but a medium to connect and interact with students, the community and Industry. The use of virtual conferencing to conduct classes was trialled by a number of lecturers who have students scattered across isolated communities. Increasingly more lecturers are working with a number of Web 2.0 tools. These have assisted with facilitating social networking, the use of avatars, cartoon animations, digital story-telling and E-portfolios. Strategies to protect student privacy in social media activities have also been progressed. The newly appointed e-learning Coordinator is working one on one with lecturers to assist them to incorporate these tools into Blackboard 9 courses.

2.3 Strategic Objective 2 – Effective Industry Relationships and Partnerships

A major contributor to KTIs success in 2011 was strengthening the effectiveness of partnerships with organisations in remote communities and with Industry. KTIs mission is


22

to provide lifelong, flexible and quality learning experiences for all students regardless if an individual lives in Wangkatjunka or an apprentice working for Rio Tinto. KTIs Industry responsive training has earned it a growing reputation for building customised training packages that meet the needs of Industry. Some of the strategic and successful relationships and partnerships include: Broome Maritime Simulation Centre (BMSC) In 2011 the Governing Council took the bold move to make a substantial investment in enhancing the software and hardware for the BMSC. The purchase of hardware and software infrastructure enabled the Institute to provide high level specialist industry training that was competitive on a world stage. The investment has translated into a service that is in high demand. The Centre has built on its previous reputation to become one of Australia‟s leading maritime simulation providers for research and port development. High profile clients include; Beltship (UK), BHP, Chevron, Newcrest Mining, Rio Tinto, Woodside and WorleyParsons. Tug masters and pilots working in facilities around Australia come to the Centre to upgrade their skills. The Centre‟s reputation is at an all time high, now attracting requests for quotations from numerous International offshore agencies. The Centre can now boast that it supports the mining, oil and gas industries to improve and develop specialist maritime skills in Australia. Furthermore, it provides timely, customer focused, responsive training that enhances the efficiency and effectiveness of the Australian resources industry and has increased the capacity of KTI to support regional development including the flow on commercial opportunities for the retail, tourism, hospitality and pearling industries in Broome. Ertech Academy In its second year KTI partnered with a local Aboriginal RTO, Landcorp and Ertech to deliver Certificate II in Civil Construction at the Broome North development site. A KTI lecturer was placed on site every day to facilitate assessments. All participants successfully completed the three month program and were employed at the completion of their studies. KTI, Fortescue Metals Group (FMG) and Downer EDI KTI delivered Certificate III in Civil Construction over six months with all graduates guaranteed employment at Christmas Creek Mine in the Pilbara under a FIFO arrangement. In May 2011, 24 students proudly graduated from their training to employment with Downer EDI.


23

Beauty – a partnership with WA Academy Beauty therapy is delivered at the Broome Campus in partnership with the WA Academy. A range of courses are available and proving to be very popular for local women and VETiS students. Many of the graduates are moving into employment with Broome‟s beauty spas. Working with Durack Institute Kimberley Training Institute won the Department for Health and Aging (DoHA) tender in 2011 to deliver the Aboriginal and Torres Strait Islander Rural and Remote Aged Care Project. In partnership with Durack Institute of Technology culturally appropriate, accredited and targeted training was delivered throughout 2011 to aged care workers at 23 eligible remote aged Aboriginal care services in the Kimberley and Pilbara regions of Western Australia. Training included specific skill sets and qualifications up to Certificate IV in Aged Care, Community Services, Home and Community Care and other accredited and non-accredited training depending on the needs of the aged care service. Although delivery to these communities has not been without numerous challenges the strength of the partnership, good project management and team work have achieved some excellent outcomes in equipping Aboriginal people to work in aged care facilities. Feedback from DoHA staff suggests the project performance is one of the most successful across Australia. Working with the Army The Army Aboriginal Community Assistance Program (AACAP) is a co-operative initiative between the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) and the Army to improve environmental health conditions within remote Aboriginal communities. Each project has a construction component, a health component and a training component. KTI lecturers spent six weeks working alongside the Army staff in very remote communities near Fitzroy Crossing. Thirteen mature aged students completed a Certificate I in Kitchen Operations. Literacy and numeracy support was delivered before the training commenced. Pastoral Training in collaboration with Pastoralists and Graziers’ Association In 2011 the Pastoral Training Program has once again been a strong performer for the Institute. Early in 2011, a Pastoral Pre-employment Program was delivered in collaboration with Kimberley pastoralists and the Pastoralists and Graziers‟ Association. The aim was to equip the students with the specific skills they required to competently and safely work on stations. The program was delivered at the Liveringa Station in February and March, with all resources supplied by local pastoralists who formed the Industry Advisory Group and identified the skills sets required for employment. The seven students who completed the training were employed by the pastoralists and most went on to formal traineeships.


24

Partnering with Serco, Derby KTI worked in conjunction with Serco to offer Certificate II in Security to groups of students who would then transition into employment at the Curtin Detention Centre. The students had the opportunity for work experience at the detention centre as part of the training. Wet Season Program- MG Corporation In 2011 the MG Corporation wet season program attracted 50 people to participate in a range of training programs including language, literacy and numeracy, art and design, welding, small engine maintenance, basic construction, barista and computing. Sport and Recreation – partnering with Garnduwa, Department of Sport and Recreation, Local Shires and Clontarf In 2011 KTI added Certificate I to IV in Sport and Recreation to its scope. Partnerships were established with Garnduwa, Department of Sport and Recreation, the Local Shires and the Clontarf Football Academy to support delivery occurring across the West Kimberley. Interest in this program is high and it is expected to further expand into 2012. Council of Australian Governments (COAG) Priority Sites Remote service delivery (RSD) is a commitment by governments to work with Aboriginal communities to improve the delivery of services to 29 priority remote communities across the Northern Territory, Western Australia, Queensland, New South Wales and South Australia. The aim is to improve access to government services and facilities, raise the quality of these services, and better support Indigenous community governance and leadership. There are four COAG priority sites in Western Australia and all are located in the Kimberley. Local Implementation Plans (LIPs) are created for each priority community (Bardi Jawi, Beagle Bay, Fitzroy Valley, Halls Creek). The LIPs are formal agreements between the communities, service providers and government. KTI contributed to all the LIPs and completed training programs that contributed to each community‟s goals and aspirations. Yiramalay Studio School On the 20 May 2011 the Yiramalay Studio School was opened at Leopold Station, an hour out of Fitzroy Crossing. The School is a partnership between the Bunuba people and Wesley College where the students spend two terms at Yiramalay and two terms at Wesley in Melbourne. KTI has provided Certificate IV TAE for Yiramalay staff and Certificate II Hospitality, Tourism, Art and Pastoral to the students. Aligned to Regional Priorities All activities undertaken are aligned to meet broader Kimberley objectives including the Regional Development Australia (RDA) key priorities in skills development (Education), Economic Development, Indigenous (Closing the Gap), Youth, and Infrastructure/Energy/Mining (Industry).


25

Marketing/Repositioning The Strategic Marketing Plan outlined how the Institute would align its marketing to the Strategic Plan. Marketing tactics included a focus on improving student recruitment, and increasing community awareness and student experience. The website was overhauled and the brand strengthened. The new and improved KTI was vibrant and bold and this was evident in the use of bold colours and images in photos used in marketing. Controlled marketing produced a greater level of consistency across campuses. The production of high quality flyers, brochures and radio ads included local people and testimonials in the adverts. The Institute increased its presence in communities attending all the large festivals, advertising in the local cinema, the back of the phone book and at the airport. The rebranding to Kimberley Training Institute allowed the Institute to reposition itself in the marketplace and build a new image using social media. The new image has strengthened the reputation of Kimberley Training Institute.

2.4 Strategic Objective 3 – Sustainability, Capability and Capacity On 13 September 2011 Kimberley TAFE changed its name to Kimberley Training Institute and took the opportunity to reposition itself in the local training market. The WA Student Survey confirms that the strengthening of reputation has been achieved with 83% of students compared with State average of 81% being satisfied with the reputation of the training provider. KTI was also selected as one of four finalist organisations for the Large Training Provider of the Year award. The Institute has ensured that sound governance and accountability structures are in place and this has been partially achieved by the relocation of Corporate Services from Kununurra to Broome and the introduction of a portfolio management system. These organisational changes occurred in parallel with building effective and focused committees. The value of the committee, its membership, terms of reference and agenda were all reviewed and sharpened to improve its effectiveness. The improved efficiency and effectiveness has stretched beyond our committees to include process review. The human resource and finance systems have streamlined many of their forms and processes. The amount of immense structural reform could not have occurred without a strategy for managing the change. The Change Management Strategy has sought to involve staff throughout the year and maximise all forms of communication. Other major changes that have contributed to KTIs impressive success in 2011 include a realignment of scope to line up with regional and Industry needs, building strategic partnerships and incredibly flexible delivery. Aboriginal Education Employment and Training Committee (AEETC) One committee that achieved a complete makeover was the AEETC. A major initiative for 2011, as directed by the Governing Council was to build greater community representation on the AEETC. Additional energetic members were sought and found. The new members lead the charge in producing a new AEETC Handbook and the Aboriginal Training Strategy which resulted in the Institute‟s Training Plan being successfully initiated.


26

Facilities/Infrastructure In Wyndham a total of just over $1M has been invested in the development of new classrooms. The investment has provided two new classrooms that are designed to meet local climatic conditions and allow lecturers to provide quality training in state of the art facilities. In addition to the classrooms there is also a new amenity block, horticulture training areas, decking and covered areas to improve facilities for students and visitors to the Campus. In 2011 Wyndham Campus expanded its delivery to provide training in the very popular, community garden training program (the community have plots of land where they grow vegetables), art and design, literacy and numeracy support, community services, business and horticulture. In Kununurra the $9M upgrade to the Kununurra Campus was completed in February 2012, as part of the $400M investment by State and Federal Governments in the development of the Ord Stage 2 project in the East Kimberley. This upgrade enables a broader scope of courses to be delivered in a positive learning environment for staff and students. The major upgrade included:

Major extensions to the existing trades workshop complex, comprising two new classrooms, new automotive and carpentry and joinery workshops, new lecturers‟ office and ablution block.

Redevelopment and extensions to the Horticulture Compound. Two new general purpose classrooms. Horticulture laboratory and classroom. New hospitality classroom. New vehicle garages and compound. Outdoor learning area.

In the past the Fitzroy Valley has been serviced by KTI using a make do „donga‟ supported by visiting lecturers from Broome and Derby. Funding was obtained from the State Government to build a new campus at Fitzroy Crossing adjacent to the new School. This $3M project (completed in early 2012) comprises Stage 1 of a campus facility to meet the growing needs for training and vocational education in the Fitzroy Valley region in modern, purpose-built premises. The new campus encompasses two classrooms, administrative block and offices and an ablution block. Workforce Development and Diversity Plan KTI makes a substantial investment in training to build a workforce with contemporary skills to remain at the cutting edge of innovative vocational delivery in a remote and regional context. To this end the Institute doubled its contribution to professional development, an investment of just over $160,000. In 2011 the year kicked off with a Professional Development Week with all staff from across the Institute coming together for a week of induction; provision of information on key priorities and strategies for the Institute and building teamwork.


27

At the end of 2011 the Institute finalised its Workforce and Diversity Plan 2011-2014. The consultation with staff, review of key documents and thorough planning produced a document that highlights key action areas to be progressed in the coming years. The strategies build on the work that is presently underway. This important document guides the Institute in its attraction, retention and recruitment of staff. Absenteeism reflects a downward trend, possibly indicating some of the strategies in place create a culture that is caring; family friendly with flexible working conditions that create a positive working environment. Growing the capacity of the Institute‟s workforce through organisational culture change and leading from the top are embedded in the way the organisation operates. The Staff Planning and Review System (SPAR) is undertaken with supervisors and monitored to confirm an 85% completion is achieved at least annually. Community Employment & Training Officers - Aboriginal Cadet Lecturers Project (CETO) The CETO project is largely funded by the Department of Education, Employment and Workplace Relations through the Innovation Fund Projects Program. This Project started in 2010 and is due for completion in June 2012. Through the CETO project Kimberley Training Institute facilitates three Aboriginal Cadet Lecturer positions. Under this program local and young Aboriginal people can gain leadership skills and experience that will equip them to potentially take on lecturing and employment roles within their own communities. Under the program the three Aboriginal cadets have dedicated staff that mentor and support them towards successful completion of the cadetship and a Certificate IV in Training and Assessment qualification. In addition, the Cadet Lecturers are involved in actual training activities and as such within their roles act as mentors and effective role models for their Aboriginal students. Streamlining Business Processes Streamlining processes, reviewing and updating procedures to reduce this burden and increase efficiency is part of KTIs strategic focus. In 2011 Human Resources in consultation with key stakeholders reviewed 14 policies, procedures and associated forms to ensure compliance with legislation, Public Sector Commission directives and best practice. New procedures, checklists and forms were developed where it was identified that these tools would assist staff to streamline operational procedures. The finance team created easy to read finance reports for all teams and through more effective monitoring expenditure on hospitality was almost halved. VET in Schools (VETiS) VETiS was extremely popular and successful throughout Kimberley schools in 2011. Over 30 courses were delivered to students in 10 schools. The majority of school courses were delivered at KTI campuses, in particular Broome, Derby and Kununurra. Other courses were delivered on school grounds in Bidyadanga and Fitzroy Valley. Delivery in these locations allowed for other remote schools to drive in and attend the VETiS training day. VETiS was auspiced through careful moderation at Birdwood Downs Station, Boab Park Station and Burkes Park. Completion rates for courses were high with 74 students gaining their qualifications.


28

Commercial Services KTI continues to grow its commercial activities in order to reduce its reliance on State funded profile funding. Income was largely achieved via tenders, fee for service delivery, maritime simulator training and other funding received for specific projects. Fee for Service revenue for 2011 totalled $1,265,172, while income from grants totalled $1,225,120. Successful strategic and targeted marketing functions held by the Institute allowed it to highlight all courses (i.e. both profile and fee for service).

2.5 Strategic Objective 4 – Community and Social Responsibility The Kimberley Ranger Program The Kimberley Ranger Program is a partnership with Kimberley Land Council (KLC). KTI delivers the training in Conservation and Land Management. KLC facilitates the ranger groups through the Working on Country program. The program employs more than 70 rangers, who are out working on their country. One of the most successful training programs for engaging and retaining Aboriginal students is the Kimberley Ranger Program. Activities of the Kimberley Ranger Program include animal surveys, fire management, reading and interpreting maps and rubbervine eradication. KTI lecturers and the Karajarri Rangers whilst completing a survey found in excess of 30 unique reptiles, with two specimens sent to the Western Australian Museum for further identification, one of which is believed to be a new species. Fire management training is part of the delivery and a growing area of interest as attention increasingly focuses on carbon abatement programs. The Rubber vine eradication program is being implemented on the Fitzroy River - which is one of the few projects in the world to be working on eradicating a serious weed rather than just controlling it. Access - Language, Literacy, Numeracy and Engagement Programs

Open Learning Centres KTIs Open Learning Centres have proved to be a very successful way of supporting students to strengthen their language, literacy and numeracy skills (LLN). A teacher is available at set times every day at the Centre to provide tailored training to meet the student‟s requirements. Centres are established in Broome, Halls Creek, Kununurra and Derby and in 2011 a Centre was also opened in Wyndham. The classes embrace a diversity of students in terms of age, gender, language, culture and religion. Some students enrol in Certificates of General Education for Adults (CGEA) to discretely strengthen their LLN skills. Other students enrol in the course, Underpinning Skills for Industry Qualifications (USIQ) to access teacher support for vocational studies.


29

Indigenous Tutorial Assistance Scheme (ITAS) Indigenous Tutorial Assistance Scheme (ITAS) funding was used to support 76 Aboriginal students working towards vocational qualifications. A variety of support options were made available in a range of locations. The program was deployed using one on one tutorials, study groups and targeted skills study sessions delivered by teacher qualified language, literacy and/or numeracy specialist staff. Support was offered to all vocational students at each town based campus and additionally tutors travelled to remote communities around Broome and the Fitzroy Valley. Vocational lecturers acknowledged that the availability of this support was instrumental in the successful retention of students and contributed to a higher completion rate.

Workplace English Language and Literacy (WELL) WELL training projects are funded by the Federal Government with the purpose of supporting people‟s LLN skills development in the context of their workplace. This enables them to work more effectively in their role and develop opportunities for pathway progression. WELL projects‟ collaborations occurred with Aged Care in Derby, Argyle Diamond Mine and the Kimberley Ranger Program.

Resource Development KTI recognises the need to support students‟ LLN skills development while they are enrolled in Certificate I, II and III level courses to ensure competence to progress to higher level qualifications. As such several projects were run to develop resources targeting particular qualifications whilst simultaneously supporting the LLN skills development of the students in a variety of qualifications including conservation and land management, industrial skills, construction and carpentry and joinery.

Youth Engagement Programs KTI offers a number of youth engagement programs across the Kimberley including programs at Broome, Derby and Fitzroy Crossing. These programs provide a valuable alternative to youth aged between 15 and 21 who have disengaged from school and are not involved in training or employment. All programs are delivered in partnership with the Kimberley District Education Office, local schools and shires as well as community based organisations (such as Marninwarntikura Women‟s Resource Centre, Yirimin Project, Garnduwa Amboorny Wirnan, Burdikin Youth Services, Headspace, HYPE) have wide support from the communities of each township as the programs support their young people.

Integrating LLN in VET Programs The Institute is very proud of the work it does in supporting vocational students with their literacy and numeracy requirements. KTI lecturers are at the cutting edge of delivery with initiatives underway that are making a huge difference to the lives of students. One such initiative is the Kimberley Land Council Ranger Initiative (a federally funded Workplace English Language and Literacy project). The Conservation and Land Management and


30

the Language, Literacy and Numeracy teams work together to implement a training program that enables students in remote communities to succeed in Certificate II and III vocational studies with pathway progression into higher level qualifications. Specialist lecturers travel to remote communities on a weekly basis to support the development of students‟ underpinning skills in language, literacy and numeracy. Construction on a Movie Set – ‘Satellite Boy’ As part of their Certificate II in Construction, KTI students based in Wyndham had a chance to see behind the scenes of a feature film when they were recruited to build parts of the set for Satellite Boy which was being shot in the East Kimberley. They helped build a cinema screen, satellite dish, telephone box, rocket and projection room for the set of the film. The training achieved a 100% student attendance during the set building. Once the parts were built and erected the students were able to visit the set and see their creations in action. Warmun Construction Project In 2011, KTI entered into an auspicing agreement with EKCDEP to provide Certificate I & II in Construction training to a team of Warmun Community members. The program engaged 15 participants in a 30 week program. Participants were enrolled in the Certificate I in Construction in Kununurra where they undertook the basic construction training and safety requirement and then completed the Certificate II at site in Warmun as part of the Warmun Reconstruction Project. This project was a refurbishment of 17 houses that were damaged in the floods earlier in the year. KTI and Clontarf The Clontarf Foundation exists to improve the education, discipline, self esteem, life skills and employment prospects of young Aboriginal men and by doing so, equip them to participate more meaningfully in society. In partnership with the Kununurra District High School and Clontarf the Clontarf Aboriginal Life Skills (CALS) class with nine students completed a Certificate I in Construction in Semester 2. Creative and Cultural Training The creative and cultural team provided training in a number of areas including mainstream programs through to VETiS and the Department of Corrective Services. VETiS programs were delivered in Bidyadanga, Beagle Bay and locally across both areas. The art program was delivered in Broome, Derby, Wangkatjunka, Beagle Bay with a number of students completing their Certificate III in ATSI Arts Administration and moving into employment. The Corrective Services program continues to be very successful. The Broome annual art exhibition held in a local gallery proved to be extremely popular, with over 250 local people attending the opening night. KTI music students also had an amazing year. The music program had seven students enrolled in the Diploma of Music. The Walkabout Boys from Yiyili, studying at Diploma level had a successful touring season, from Kununurra to Perth and were in high demand. Another music student, John Bennett (JB) also won a recording contract in 2011 due to the efforts of the dedicated lecturers. This student originated from the


31

Department of Corrective Services program and completed a qualification once released. The Walkabout Boys and JB were finalists in the WA Music Awards. Role of Aboriginal Staff KTIs Aboriginal staff take onboard a variety of roles, playing an important part in enrolments, retention and performance of students. KTI has 10 full time staff employed across six campuses that assist and support Aboriginal training delivery. The Aboriginal Development Officers, Aboriginal Liaison Officers, Apprenticeship and Traineeships Officers have the primary role of community engagement and mentoring specifically for Aboriginal people. In 2011 the case management and mentoring of Aboriginal trainees contributed to improved retention and decreased cancellations. Broome Aquaculture Centre (BAC) KTI has a 13 year history of aquaculture programs in the Kimberley. These programs were delivered to a range of communities from Bidyadanga Aboriginal Community south of Broome to Kalumburru in the north. KTI is very experienced with the logistical and cultural issues surrounding delivery of complex programs in remote areas of north Western Australia. One of the growing areas of expertise is in the area of culturing barramundi. The Broome Aquaculture Centre (BAC) has been expanding its research and teaching activities in this field since 1998. Growing barramundi has involved the capture and transport of brood stock from all over the Kimberley to then grow them to maturation. The BAC has been the primary driver of a restocking and monitoring program for Dampier Creek in Roebuck Bay adjacent to the town site of Broome. This restocking program has strengthened the staffs understanding of species specific issues associated with barramundi transport, handling, tagging and release into natural water ways. The Dampier Creek program has achieved two successful releases of barramundi into the Dampier Creek in May 2010 and April 2011. KTIs Broome Aquaculture Centre runs a range of other programs designed to meet demand for marine orientated science. These include school based programs, industry development programs with pearling and barramundi industry partners and community based programs with partners as diverse as the Tourist operators, commercial fisherman, Broome Fishing Club, Recfishwest, Fisheries WA and Local Traditional Owners.

3. Significant Issues Impacting the Agency 3.1 Factors Affecting Delivery At the 2006 Census 47.7% of the Kimberley region‟s population identified themselves as Aboriginal. Australian Bureau of Statistics (ABS) data also indicates that Aboriginal people living in the Kimberley are the most disadvantaged people in Western Australia. The challenges of remote service delivery and working with the most disadvantaged people in Western Australia include:

thin markets where it is difficult to get viable numbers of students for delivery; seasonal factors limiting access to communities during the wet season;


32

geographic isolation; the cost of delivering in remote rural communities which is prohibitively

expensive, especially in regard to travel and accommodation; low levels of literacy and numeracy and low attendance rates in secondary

schools create an issue for the Institute where high levels of literacy and numeracy support are required in vocational programs;

recruitment and retention of staff with significant staff turnover due to isolation and difficult living conditions. The Institute attracts a reasonable number of applicants to the larger regional centre of Broome but it is difficult to recruit highly skilled and qualified staff to the smaller campuses where there is less infrastructure and facilities and the cost of living is high;

lack of infrastructure where, for example, the Broome Campus cannot meet demand due to the requirement for enhanced trades infrastructure;

immense social issues of poverty, high levels of unemployment and inadequate housing;

limited economies of scale due to thin markets; and competition is increasing in the Kimberley region from other RTOs. KTI has

always and continues to provide training to the very remote areas and recognises its social and ethical obligations and expectations in relation to access and equity, community development, and literacy and numeracy.

3.2 Trends Affecting Delivery From 1997 to 2007, the Kimberley‟s average growth rate was 2.5%, making it the second fastest growing region in the State. The following trends and developments will have a significant impact on the Institute‟s future delivery:

the $400M East Kimberley Development Package launched mid way through 2009, will be used to build social and common use infrastructure to promote healthy and vibrant communities and supply sustainable employment opportunities for local Aboriginal people;

Ord Stage 2 will develop over the next few years with significant agricultural expansion around Kununurra. This will create increased demand for suitably trained and skilled people to work in the horticultural and agricultural industries;

the $30B LNG gas project at James Price Point on the Dampier Peninsula may create significant training and employment opportunities, particularly in the trades;

Derby Regional Prison (220 beds) will open mid 2012; Government Regional Officers Housing (GROH) building 53 new houses in

Derby and creating significant demand for apprentices in carpentry and joinery;

significant increases in construction in the Fitzroy Crossing and Fitzroy Valley area will create training and employment opportunities in building and construction. This area has been identified as one of the 26 focus areas in the National Partnership Program;

the Kimberley has four of the COAG priority sites so there will be significant attention on the Institute to achieve national COAG targets including those relating to participation in training, higher level qualifications and closing the gap for Aboriginal Australians;


33

the Broome North Development will provide housing, business opportunities and community facilities for up to 13,000 people; and

$500M committed or under construction for mining and agricultural industries for Western Australia and $300M of resource projects involving expansion, feasibility, or new projects planned.


34

4. Disclosure of Legal Compliance


35


36

4.1 Financial Statements Kimberley Training Institute Certification of Financial Statements for year ended 31 December 2011 The accompanying financial statements of Kimberley Training Institute have been prepared in compliance with the provisions of the Financial Management Act 2006 from proper accounts and records to present fairly the financial transactions for the year ended 31 December 2011 and the financial position as at 31 December 2011. At the date of signing we are not aware of any circumstances which would render any particulars included in the financial statements misleading or inaccurate.


37

4.1.1 Statement of Comprehensive Income for the Year Ended 31 December 2011

STATEMENT OF COMPREHENSIVE INCOME 2011 2010

FOR THE YEAR ENDED 31 DECEMBER 2011

Notes $ $

COST OF SERVICES

Expenses

Employee benefits expense 7 19,787,461 16,043,296

Supplies and services 8 5,442,511 5,903,965

Depreciation and amortisation expense 9 1,063,086 988,722

Finance costs 10 - 30

Grants and subsidies 11 419,100 94,824

Cost of sales 16 35,151 34,914

Loss on disposal of non-current assets 20 1,734 -

Other expenses 12 1,373,924 1,059,837

Total cost of services 28,122,967 24,125,588

Income

Revenue

Fee for service 13 1,265,172 1,269,787

Student fees and charges 14 680,907 678,748

Ancillary trading 15 36,437 57,432

Sales 16 47,727 45,607

Commonwealth grants and contributions 17 1,225,120 487,888

Interest revenue 18 143,229 138,422

Other revenue 19 11,334 47,114

Total revenue 3,409,926 2,724,998

Total income other than income from State Government 3,409,926 2,724,998

NET COST OF SERVICES (24,713,040) (21,400,590)

INCOME FROM STATE GOVERNMENT 21

Service appropriation 24,042,882 18,517,129

Resources received free of charge 358,073 163,786

Total income from State Government 24,400,955 18,680,915

(312,086) (2,719,675)

OTHER COMPREHENSIVE INCOME

Changes in asset revaluation surplus 12,448,410 (1,835,970)

Total other comprehensive income 12,448,410 (1,835,970)

TOTAL COMPREHENSIVE INCOME/(DEFICIT) FOR

THE PERIOD 12,136,324 (4,555,645)

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

Kimberley Training Institute

SURPLUS/(DEFICIT) FOR THE PERIOD


38

4.1.2 Statement of Financial Position as at 31 December 2011 Kimberley Training Institute

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2011 2011 2010

Notes $ $

ASSETS

Current Assets

Cash and cash equivalents 36 2,138,504 897,237

Restricted cash and cash equivalents 22,36 494,924

Inventories 23 29,066 23,463

Receivables 24 661,518 1,068,686

Other current assets 25 91,589 88,807

Total Current Assets 2,920,677 2,573,117

Non-Current Assets

Restricted cash and cash equivalents 22,36 423,453 268,605

Property, plant and equipment 27 47,023,607 35,260,078

Intangible assets 28 67,414 -

Total Non-Current Assets 47,514,474 35,528,683

TOTAL ASSETS 50,435,151 38,101,800

LIABILITIES

Current Liabilities

Payables 30 946,406 1,207,804

Provisions 32 2,146,660 1,818,894

Other current liabilities 33,34 686,009 700,349

Total Current Liabilities 3,779,075 3,727,047

Non-Current Liabilities

Provisions 32 606,476 461,476

Total Non-Current Liabilities 606,476 461,476

TOTAL LIABILITIES 4,385,551 4,188,523

NET ASSETS 46,049,600 33,913,277

EQUITY

Contributed equity 35 6,842,955 6,842,955

Reserves 31,616,568 19,168,158

Accumulated surplus/(deficit) 7,590,077 7,902,164

TOTAL EQUITY 46,049,600 33,913,277

The Statement of Financial Position should be read in conjunction with the accompanying notes.


39

4.1.3 Statement of Cash Flows from the Year Ended 31 December 2011 Kimberley Training Institute

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2011 2011 2010

Notes $ $

CASH FLOWS FROM STATE GOVERNMENT

Service appropriation - Department of Training and

Workforce Development 22,935,705 17,648,138

Net cash provided by State Government 22,935,705 17,648,138

Utilised as follows:

CASH FLOWS FROM OPERATING ACTIVITIES

Payments

Employee benefits (17,946,611) (14,532,286)

Supplies and services (5,376,676) (5,581,264)

Grants and subsidies (433,440) (73,050)

Finance costs (30)

GST payments to taxation authority 213,047 (733,649)

Other payments (1,335,187) (1,029,673)

Receipts

Fee for service 1,202,898 1,116,740

Student fees and charges 660,587 616,001

Ancillary trading 36,437 57,431

Commonwealth grants and contributions 1,590,857 763,157

Interest received 143,228 138,422

GST receipts on sales (599,703) 246,536

GST receipts from taxation authority 231,745 385,921

Other receipts 23,908 479,623

Net cash provided by/(used in) operating activities 36 (21,588,909) (18,146,121)

CASH FLOWS FROM INVESTING ACTIVITIES

Payments

Purchase of non-current physical assets (445,604) (1,390,231)

Net cash provided by/(used in) investing activities (445,604) (1,390,231)

Net increase/(decrease) in cash and cash equivalents 901,191 (1,888,214)

Cash and cash equivalents at beginning of period 1,660,766 3,548,980

CASH AND CASH EQUIVALENTS AT END OF PERIOD 36 2,561,957 1,660,766

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


40

4.1.4 Statement of Changes in Equity for the Year Ended 31 December 2011 Kimberley Training Institute

STATEMENT OF CHANGES IN EQUITY Accumulated

FOR THE YEAR ENDED 31 DECEMBER 2011Contributed

Equity Reserves

Surplus /

(Deficit) Total Equity

Notes $ $ $ $

Balance at 1 January 2010 35 6,842,955 21,004,128 10,621,839 38,468,922

Surplus/(deficit) - - (2,719,675) (2,719,675)

Other comprehensive income - (1,835,970) - (1,835,970)

Total comprehensive income for the year - (1,835,970) (2,719,675) (4,555,645)

Balance at 31 December 2010 6,842,955 19,168,158 7,902,164 33,913,277

Balance at 1 January 2011 6,842,955 19,168,158 7,902,164 33,913,277

Surplus/(deficit) - - (312,087) (312,087)

Other comprehensive income - 12,448,410 - 12,448,410

Total comprehensive income for the year - 12,448,410 (312,087) 12,136,323

Balance at 31 December 2011 35 6,842,955 31,616,568 7,590,077 46,049,600

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


41

4.1.5 Notes to the Financial Statements for the Year Ended 31 December 2011 1. Australian equivalents to International Financial Reporting Standards (a) General The Institute's financial statements for the year ended 31 December 2011 have been prepared in accordance with Australian Accounting Standards. The term 'Australian Accounting Standards' refers to Standards and Interpretations issued by the Australian Accounting Standard Board (AASB). The Institute has adopted any applicable, new and revised Australian Accounting Standards from their operative dates. (b) Early adoption of Standards The Institute cannot early adopt an Australian Accounting Standard unless specifically permitted by Treasurer's Instruction (TI) 1101 'Application of Australian Accounting Standards and Other Pronouncements'. There has been no early adoption of Australian Accounting Standards that have been issued or amended [but not operative] by the Institute for the annual reporting period ended 31 December 2011. 2. Summary of significant accounting policies The following accounting policies have been adopted in the preparation of these financial statements. Unless otherwise stated, these policies are consistent with those adopted in the previous year. (a) General statement The financial statements constitute general purpose financial statements which have 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 Treasurer‟s instructions. Several of these are modified by the Treasurer‟s instructions to vary application, disclosure, format and wording. For example, AASB 116 requires land and buildings to be measured at either cost or fair value; TI 954 mandates the fair value option. The Financial Management Act and the Treasurer‟s instructions are legislative provisions governing the preparation of financial statements and take precedence over the Australian Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the AASB. Where modification is required and has had a material or significant financial effect upon the reported results, details of that modification and the resulting financial effect are disclosed in the notes to the financial statements.


42

(b) Basis of preparation The financial statements have been prepared on the accrual basis of accounting using the historical cost convention, except for land, buildings and infrastructure which have been 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 ($). Note 4 „Judgements made by management in applying accounting policies‟ discloses judgements that have been made in the process of applying the Institute‟s accounting policies resulting in the most significant effect on amounts recognised in the financial statements. Note 5 „Key sources of estimation uncertainty‟ discloses key assumptions made concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. (c) Reporting entity The reporting entity comprises the Institute only. (d) Contributed equity AASB Interpretation 1038 „Contributions by Owners Made to Wholly-Owned Public Sector Entities‟ requires transfers in the nature of equity contributions, other than as a result of a restructure of administrative arrangements, 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 appropriations have been designated as contributions by owners by TI 955 'Contributions by Owners Made to Wholly Owned Public Sector Entities' and have been credited directly to Contributed Equity. Transfer of net assets to/from other agencies, other than as a result of a restructure of administrative arrangements, are designated as contributions by owners where the transfers are non-discretionary and non-reciprocal. See note 35 'Equity'. (e) Income Revenue Recognition Revenue is recognised and measured at the fair value of consideration received or receivable.


43

Funding revenue is recognised in the statement of comprehensive income when it is controlled, unless any specific obligations attached to the funds have yet to be performed, when they are then recorded as deferred income in the statement of financial position until such conditions are met or services provided. The majority of operating revenue of the Institute represents revenue earned from student fees and charges, fee for service, ancillary services, trading activities and Commonwealth grants and contributions. Sale of goods Revenue is recognised from the sale of goods and disposal of other assets when the significant risks and rewards of ownership transfer to the purchaser and can be measured reliably. Provision of services Revenue is recognised by reference to the stage of completion of the transaction. Interest Revenue is recognised as the interest accrues. Grants, donations, gifts and other non-reciprocal contributions Revenue is recognised at fair value when the Institute obtains control over the assets comprising the contributions, usually when cash is received. 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. State funds The funds received from the Department of Training and Workforce Development 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 Institute meets the terms of the Agreement. See note 21 'Income from State Government'. Gains Realised and unrealised gains 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.


44

(f) Borrowing costs Borrowing costs for qualifying assets are capitalised net of any investment income earned on the unexpended portion of the borrowings. Other borrowing costs are expensed when incurred. (g) Property, plant and equipment and infrastructure Capitalisation/Expensing of assets Items of property, plant and equipment and infrastructure costing $5,000 or more are recognised as assets and the cost of utilising assets is expensed (depreciated) over their useful lives. Where applicable in accordance with TI 1101, the capitalisation threshold has been applied to the aggregate value of a group or network of assets where the cost of individual item may be below the threshold but collectively the cost of the items in the group or network exceeds the threshold. Items of property, plant and equipment and infrastructure costing less than $5,000 are immediately expensed direct to the Statement of Comprehensive Income (other than where they form part of a group of similar items which are significant in total). Initial recognition and measurement 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 the fair value at the date of acquisition. Subsequent measurement Subsequent to initial recognition as an asset, the revaluation model is used for the measurement of land, buildings and infrastructure and historical cost for all other property, plant and equipment. Land and buildings are carried at fair value less accumulated depreciation (buildings only) and accumulated impairment losses. All other items of property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. Where market-based evidence is available, the fair value of land and buildings is determined on the basis of current market buying values determined by reference to recent market. 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. In the absence of market-based evidence, fair value of land and buildings is determined on the basis of existing use. This normally applies where buildings 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 determined on the depreciated replacement cost basis, the accumulated depreciation is


45

eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount. Land and buildings are independently valued annually by the Western Australian Land Information Authority (Valuation Services) and recognised annually to ensure that the carrying amount does not differ materially from the asset's fair value at the end of the reporting period. The most significant assumptions in estimating fair value are made in assessing whether to apply the existing use basis to assets and in determining estimated useful life. Professional judgement by the Valuer is required where the evidence does not provide a clear distinction between market type assets and existing use assets. Refer to note 27 'Property, plant and equipment' for further information on revaluations. Derecognition Upon disposal or derecognition of an item of property, plant and equipment and infrastructure, any revaluation surplus relating to that asset is retained in the asset revaluation surplus. Asset revaluation surplus The asset revaluation surplus is used to record increments and decrements on the revaluation of non-current assets as described in note 27 „Property, plant and equipment‟. Depreciation All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in a manner that reflects the consumption of their future economic benefits. Depreciation is calculated using the straight line method, using rates which are reviewed annually. Estimated useful lives for each class of depreciable asset are: Buildings 40 years Motor vehicles, caravans and trailers 5 to 8 years Plant, furniture and general equipment 4 to 8 years Computing, communications and software (a) 2 to 8 years Marine craft 5 to 8 years (a) Software that is integral to the operation of related hardware. Land is not depreciated.


46

(h) Intangible assets Capitalisation/Expensing of assets Acquisitions of intangible assets costing $ 5,000 or more and the cost of utilising the assets are expensed (amortised) over their useful life. Costs incurred below these thresholds are recognised as an expense in the Statement of Comprehensive Income 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 accumulated impairment losses. Amortisation for intangible assets with finite useful lives is calculated for the period of the expected benefit (estimated useful life which is reviewed annually) on the straight line basis. All intangible assets controlled by the Institute have a finite useful life and zero residual value. The expected useful lives for each class of intangible asset are: Software (a) 3 to 5 years (a) Software that is not integral to the operation of any related hardware. Computer software Software that is an integral part of the related hardware is recognised as property, plant and equipment. Software that is not an integral part of the related hardware is recognised as an intangible asset. Software costing less than $5,000 is expensed in the year of acquisition. (i) Impairment of assets Property, plant and equipment, infrastructure and intangible assets are tested for any indication of impairment at the end of each reporting period. Where there is an indication of impairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is considered impaired and is written down to the recoverable amount and an impairment loss is recognised. As the Institute is a not-for-profit entity, unless an asset has been identified as 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.


47

Intangible assets with an indefinite useful life and intangible assets not yet available for use are tested for impairment at the end of each reporting period 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 reference to 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. Surplus assets at cost are tested for indications of impairment at the end of each reporting period. See note 29 „Impairment of assets‟ for the outcome of impairment reviews and testing. See note 2(p) 'Receivables' and note 24 'Receivables' for impairment of receivables. (j) Non-current assets (or disposal groups) classified as held for sale Non-current assets (or disposal groups) held for sale are recognised at the lower of carrying amount and fair value less costs to sell and are disclosed separately from other assets in the Statement of Financial Position. Assets classified as held for sale are not depreciated or amortised. (k) Leases The Institute has entered into operating lease arrangements for vehicles and land. Lease payments are expensed on a straight line basis over the lease term as this represents the pattern of benefits derived from the leased motor vehicles and land. (l) Financial instruments In addition to cash, the Institute has two categories of financial instruments:

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

Financial liabilities

payables Initial recognition and measurement of financial instruments is at fair value which normally equates to the transaction cost or face value. Subsequent 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.


48

(m) Cash and cash equivalents For the purpose of the Statement of Cash Flows, cash and cash equivalents include restricted cash and cash equivalents. These are comprised of cash on hand and 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 to insignificant risk of changes in value, and bank overdrafts. The Institute has no bank overdrafts. (n) Accrued salaries The 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. The accrued salaries suspense account (see note 30 „Payables‟) represents 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 Institute considers the carrying amount of accrued salaries to be equivalent to its net fair value. (o) Inventories Inventories 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 measured on a first in first out basis. Inventories not held for resale are measured at cost unless they are no longer required, in which case they are measured at net realisable value. See note 23 'Inventories'. (p) Receivables Receivables are recognised and carried at original invoice amount less an allowance for any uncollectible amounts (i.e. 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 allowance for uncollectible amounts (doubtful debts) is raised when there is objective evidence that the Institute 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‟.


49

(q) Payables Payables are recognised when the Institute 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 settlement is generally within 30 days. See note 2(l) „Financial instruments‟ and note 30 'Payables'. (r) Borrowings The Institute has no borrowings. (s) Provisions Provisions are liabilities of uncertain timing or amount and are recognised where there is a present legal or constructive obligation as a result of 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 the end of each reporting period. See note 32 „Provisions‟. (i) Provisions - employee benefits All annual leave and long service leave provisions are in respect of employees‟ services up to the end of the reporting period. Annual leave and long service leave The liability for annual leave expected to be settled within twelve months after the end of the reporting period is recognised and measured at the undiscounted amounts expected to be paid when the liabilities are settled. Annual leave and long service leave not expected to be settled within 12 months after the end of the reporting period is recognised and measured at the present value of amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement. When assessing expected future payments consideration is given to expected future wage and salary levels including non-salary components such as employer superannuation contributions, as well as the experience of employee departures and periods of service. The expected future payments are discounted using market yields at the end of the reporting period on national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows. The provision for annual leave is classified as a current liability as the Institute does not have an unconditional right to the defer settlement of the liability for at least 12 months after the end of the reporting period. When assessing expected future payments consideration is given to expected future wage and salary levels including non salary components such as employer superannuation contributions, as well as the experience of employee departures and periods of service. The expected future payments are discounted using market yields at


50

the end of the reporting period on national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows. Unconditional long service leave provisions are classified as current liabilities as the Institute does not have an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. Pre-conditional and conditional long service leave provisions are classified as non-current liabilities because the Institute has an unconditional right to defer the settlement of the liability until the employee has completed the requisite years of service. Superannuation The Government Employees Superannuation Board (GESB) administers public sector superannuation arrangements in Western Australia in accordance with legislative requirements. Eligible employees may contribute to the Pension Scheme, a defined benefit pension scheme now closed to new members since 1987, or the Gold State Superannuation Scheme (GSS), a defined benefit lump sum scheme also closed to new members since 1995. The GSS is a defined benefit scheme for the purposes of employees and whole-of-government reporting. However, it is a defined contribution plan for Institute purposes because the concurrent contributions (defined contributions) made by the Institute to GESB extinguishes the Institute‟s obligations to the related superannuation liability. The Institute has no liabilities under the Pension schemes or the GSS. The liabilities for the unfunded Pension Scheme and the unfunded GSS transfer benefits attributable to members who transferred from the Pension Scheme, are assumed by the Treasurer. All other GSS obligations are funded by concurrent contributions made by the Institute to the GESB. Employees commencing employment prior to 16 April 2007 who were not members of either the Pension Scheme or the GSS became non-contributory members of the West State Superannuation Scheme (WSS). Employees commencing employment on or after 16 April 2007 became members of the GESB Super Scheme (GESBS). Both of these schemes are accumulation schemes. The Institute makes concurrent contributions to GESB on behalf of employees in compliance with the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992. These contributions extinguish the liability for superannuation charges in respect of the WSS and GESBS. The GESB makes all benefit payments in respect of the Pension Scheme and GSS, and is recouped from the Treasurer for the employer's share. See also note 2(t) 'Superannuation expense'.


51

(ii) Provisions – other Employment on-costs Employment on-costs, including workers‟ compensation insurance, are not employee benefits and are recognised separately as liabilities and expenses 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 Institute's 'Employee benefits expense‟. The related liability is included in 'Employment on-costs provision'. (See note 12 'Other expenses' and note 32 'Provisions'.) (t) Superannuation expense The superannuation expense in the Statement of Comprehensive Income comprises of employer contributions paid to the GSS (concurrent contributions), the West State Superannuation Scheme (WSS), and the GESB Super Scheme (GESBS). (u) Resources received free of charge or for nominal cost Resources received free of charge or for nominal cost that can be reliably measured are recognised as income at fair value. Where the resource received represents a service that the authority would otherwise pay for, a corresponding expense is recognised. Receipts of assets are recognised in the Statement of Financial Position. Assets or services received from other State Government agencies are separately disclosed under Income from State Government in the Statement of Comprehensive Income. (v) Jointly controlled operations The Institute has no interests in joint ventures that are jointly controlled operations. (w) Comparative figures Comparative figures are, where appropriate, reclassified to be comparable with the figures presented in the current financial year. 3. Other policies not included in this Model There are no further policies to disclose. 4. Judgements made by management in applying accounting policies The preparation of financial statements requires management to make judgements about the application of accounting policies that have a significant effect on the amounts recognised in the financial statements. The Institute evaluates these judgements regularly.


52

Operating Lease Commitments The Institute has entered into a commercial lease and has determined that the lessor retains substantially all the significant risks and rewards incidental to ownership of the property. Accordingly, the lease has been classified as an operating lease. 5. Key sources of estimation uncertainty Key estimates and assumptions concerning the future are based on historical experience and various other factors that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year. Long Service Leave Several estimations and assumptions in calculating the Institute‟s long service leave provision include expected future salary rates, discount rates, employee retention rates and expected future payments. Changes in these estimations and assumptions may impact on the carrying amount of the long service leave provision. Property, Plant and Equipment The Institute engages the Valuer General‟s Officer annually to performing an estimation of land and buildings revaluation. However the estimated useful life of other assets such as Plant and Equipment could be considered an estimate of uncertainty. Receivables Uncertainty exists within the estimation of values in relation to the impairment of receivables. 6. Disclosure of changes in accounting policy and estimates Initial application of an Australian Accounting Standard The Institute has applied the following Australian Accounting Standards effective for annual reporting periods beginning on or after 1 January 2011 that impacted on the Institute.

AASB 2009-12 Amendments to Australian Accounting Standards [AASB 5, 8, 108, 110, 112, 119, 133, 137, 139, 1023 & 1031 and Interpretations 2, 4, 16, 1039 & 1052] This Standard makes editorial amendments to a range of Australian Accounting Standards and Interpretations. There is no financial impact.


53

AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 1, AASB 7, AASB 101 & AASB 134 and Interpretation 13] The amendments to AASB 7 clarify financial instrument disclosures in relation to credit risk. The carrying amount of financial assets that would otherwise be past due or impaired whose terms have been renegotiated is no longer required to be disclosed. There is no financial impact. The amendments to AASB 101 clarify the presentation of the statement of changes in equity. The disaggregation of other comprehensive income reconciling the carrying amount at the beginning and the end of the period for each component of equity is no longer required. There is no financial impact.

AASB 2010-5 Amendments to Australian Accounting Standards [AASB 1, 3, 4, 5, 101, 107, 112,118, 119, 121, 132, 133, 134, 137, 139, 140, 1023 & 1038 and Interpretations 112, 115, 127, 132 & 1042] This Standard makes editorial amendments to a range of Australian Accounting Standards and Interpretations. There is no financial impact.

Voluntary changes in accounting policy

No Voluntary changes in accounting policy have been made.

Future impact of Australian Accounting Standards not yet operative

The Institute cannot early adopt an Australian Accounting Standard unless specifically permitted by TI 1101 'Application of Australian Accounting Standards and Other Pronouncements'. Consequently, the Institute has not applied early any of the following Australian Accounting Standards that have been issued that may impact the Institute. Where applicable, the Institute plans to apply these Australian Accounting Standards from their application date.

Title

Operative for reporting periods beginning on / after

AASB 9 Financial Instruments This Standard supersedes AASB 139 Financial Instruments: Recognition and Measurement, introducing a number of changes to accounting treatments. The Standard was reissued in Dec 2010. Treasury has not yet determined the application or the potential impact of the Standard for agencies.

1 Jan 2013


54

Title


AASB 13 Fair Value Measurement This Standard defines fair value, sets out a framework for measuring fair value and requires disclosures about fair value measurements. There is no financial impact.

1 Jan 2013

AASB 119 Employee Benefits This Standard supersedes AASB 119 Employee Benefits, introducing a number of changes to accounting treatments. The Standard was issued in Sep 2011. Treasury has not yet determined the application or the potential impact of the Standard for agencies.

1 Jan 2013

AASB 1053 Application of Tiers of Australian Accounting Standards This Standard establishes a differential financial reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements. The Standard does not have any financial impact on the Institute. However it may affect disclosures in the financial statements of the Institute if the reduced disclosure requirements apply. Treasury has not yet determined the application or the potential impact of the new Standard for agencies.

1 July 2013

AASB 1054 Australian Additional Disclosures This Standard, in conjunction with AASB 2011-1 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project, removes disclosure requirements from other Standards and incorporates them in a single Standard to achieve convergence between Australian and New Zealand Accounting Standards. There is no financial impact.

1 Jul 2011

AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 and Interpretations 10 & 12] The standard is superseded by AASB 2010-7.

1 Jan 2013

AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements [AASB 1, 2, 3, 5, 7,8, 101, 102, 107, 108, 110, 111, 112, 116, 117, 119, 121,123, 124, 127, 128, 131, 133, 134, 136, 137, 138,

1 July 2013


55

Title


140, 141,1050 & 1052 and Interpretations 2, 4, 5, 15, 17, 127, 129 & 1052] This Standard makes amendments to many Australian Accounting Standards, including Interpretations, to introduce reduced disclosure requirements into these pronouncements for application by certain types of entities. The Standard is not expected to have any financial impact on the Institute. However this Standard may reduce some note disclosures in the financial statements of the Institute. Treasury has not yet determined the application or the potential impact of the amendments to these Standards for agencies.

AASB 2010-6 Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial Assets [AASB 1 & AASB 7] The amendments to AASB 7 introduce additional disclosure relating to transfers of financial assets. There is no financial impact.

1 Jul 2011

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101,102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137,139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] This Standard makes amendments to other Australian Accounting Standards and Interpretations as a result of issuing AASB 9 in Dec 2010. Treasury has not yet determined the application or the potential impact of the Standard for agencies.

1 Jan 2013

AASB 2011-2 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project – Reduced Disclosure Requirements [AASB 101 & 1054] This Standard removes disclosure requirements from other Standards and incorporates them in a single Standard to achieve convergence between Australian and New Zealand Accounting Standards for reduced disclosure reporting. Treasury has not yet determined the application or the potential impact of the amendments to these Standards for agencies.

1 July 2013


56

Title


AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 [AASB 1, 2, 3, 4, 5, 7, 9, 2009-11, 2010-7, 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038 and Interpretations 2, 4, 12, 13, 14, 17, 19, 131 & 132] This Standard replaces the existing definition and fair value guidance in other Australian Accounting Standards and Interpretations as the result of issuing AASB 13 in Sep 2011. There is no financial impact.

1 Jan 2013

AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income [AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 &1049] This Standard requires to group items presented in other comprehensive income on the basis of whether they are potentially reclassifiable to profit or loss subsequently (reclassification adjustments). Treasury has not yet determined the application or the potential impact of the Standard for agencies.

1 Jul 2012

AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) [AASB 1, 8, 101, 124, 134, 1049 & 2011-8 and Interpretation 14] This Standard makes amendments to other Australian Accounting Standards and Interpretations as a result of issuing AASB 119 Employee Benefits in Sep 2011. Treasury has not yet determined the application or the potential impact of the Standard for agencies.

1 Jan 2013

AASB 2011-11 Amendments to AASB 119 (September 2011) arising from Reduced Disclosure Requirements This Standard gives effect to Australian Accounting Standards – Reduced Disclosure Requirements for AASB 119 (Sep 2011). Treasury has not yet determined the application or the potential impact of the Standard for agencies.

1 Jul 2013

Changes in Accounting Estimates

The Institute made no accounting estimate change in 2011.


57

2011 2010

$ $

7 Employee benefits expense

Wages and salaries (a) 14,490,766 11,735,460

Superannuation - defined contribution plans (b) 1,107,175 868,988

Long Service Leave (c) 339,785 223,542

Annual leave (c) 135,831 228,102

Other 878,400 726,611

GROH Rental Subsidy 2,835,504 2,260,593

19,787,461 16,043,296

(c) Includes a superannuation contribution component.

8 Supplies and services

Consumables and minor equipment 744,942 776,286

Communication expenses 124,087 121,606

Utilities expenses 254,215 379,297

Consultancies and contracted services 1,543,266 2,146,522

Minor works 660,497 477,222

Repairs and maintenance 109,817 271,774

Operating lease and hire charges 740,136 748,122

Travel and passenger transport 904,302 869,524

Advertising and public relations 107,289 93,090

Supplies and services - other 253,960 20,522

5,442,511 5,903,965

9 Depreciation and amortisation expense

DepreciationBuildings 635,000 667,960 Motor vehicles, caravans and trailers 130,270 136,420 Plant, furniture and general equipment 102,271 107,972 Computers and communication network 158,299 72,003 Marine craft 2,390 4,367

Total depreciation 1,028,230 988,722

Amortisation

Software 34,856 -

Total amortisation 34,856 -

Total depreciation and amortisation 1,063,086 988,722

Employment on-costs expenses, such as workers' compensation insurance, are included at

note 12 'Other expenses'.

Employment on-costs liability is included at note 32 'Provisions'.


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2011

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

component, leave entitlements including superannuation contribution component.(b) Defined contribution plans include West State, and Gold State and GESB Super Scheme

(contribution paid).


58

2011 2010 10 Finance costs

Other interest expenses - 30 Finance costs expensed - 30

11 Grants and subsidies

Payments to non-TAFE providers for VET service

delivery 419,100 94,824

419,100 94,824

12 Other expenses

Asset revaluation decrementBuilding maintenance 277,467 291,876 Doubtful debts expense 32,050 12,607 Employment on-costs (a) 864,802 728,400 DonationsStudent prizes and awards 1,307 8,535 Write-down of assets classified as held for sale (a)Losses and write-offs 8,422 17,558 Other (b) 189,876 861

1,373,924 1,059,837

13 Fee for service

Fee for service - general 942,371 1,077,527 Fee for service - Department of Training and Workforce

Development 288,311 174,750 Fee for service - Government (other than Department

of Training and Workforce Development) 11,870 1,828

International division fees 22,620 15,682

1,265,172 1,269,787

14 Student fees and charges

Tuition fees 415,124 414,136

Enrolment fees 10,830 9,975

Resource fees 251,380 246,824

Other Institute fees 3,573 7,813

680,907 678,748

15 Ancillary tradingContracting and consulting - - Other ancillary revenue 36,437 57,432

36,437 57,432

16 Bookshop Trading profit/(loss)Sales 47,727 45,607 Cost of sales:Opening inventory (23,463) (32,610) Purchases (40,754) (31,086) Write Offs 5,319

(64,217) (58,377)

Closing inventory 29,066 23,463

Cost of goods sold (35,151) (34,914)

Trading profit/(loss) - Bookshop 12,576 10,693

See note 2(o) 'Inventories' and note 23 'Inventories'.

(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 32 'Provisions'. Superannuation contributions accrued as part of the

provision for leave are employee benefits and are not included in employment on-costs.

(b) Includes Refunds of Revenue from Prior Year.


59

2011 2010

17 Commonwealth grants and contributions

Commonwealth specific purpose grants and

contributions (a) 1,225,120 487,888

1,225,120 487,888

18 Interest revenue

Interest revenue from CBA Operating Account 143,229 138,422

143,229 138,422

19 Other revenueRental and facilities fees 6,664 9,944 Sponsorship and donations revenue 315 8,000 Miscellaneous revenue 4,355 29,170

11,334 47,114

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

Costs of disposal of non-current assets

Plant, furniture and general equipment (1,734) -

Total cost of disposal of non-current assets (1,734) -

Net gain/(loss) (1,734) -

21 Income from State Government

Delivery and Performance Agreement (DPA) 19,488,231 14,995,349

Superannuation 1,096,235 868,988

Other recurrent funds 3,458,416 2,652,792

Total State funds 24,042,882 18,517,129

Department of Training and Workforce Development

- Corporate systems support 304,209 46,563

- Marketing and publications 24,386 13,602

- Other 29,478 103,621

358,073 163,786

Total income from State Government 24,400,955 18,680,915

(a) These grants include DEEWR grants, WELL grants, LLNP and Rural and Remote Aged

Care Tenders.

Service appropriation (a) (State funds received from Department of Training and Workforce

Development):

Resources received free of charge determined on the basis of the following estimates

provided by agencies (b) :

(a) Service appropriations fund the net cost of services delivered. Appropriation revenue

comprises a cash component and a receivable (asset). The receivable (holding account)

comprises the depreciation expense for the year and any agreed increase in leave liability

during the year.

(b) Assets or services received free of charge or for nominal cost are recognised as

revenue at fair value of the assetsnd/or services that can be reliably measured and which

would have been purchased if they were not donated. Contribution of assets or services in

the nature of contributions by owners are recognised direct to equity.

See note 2(j) 'Non-current assets (or disposal groups) classified as held for sale‟ and note

27 „Property, plant and equipment‟.


60

2011 2010

22 Restricted cash and cash equivalents

Current Specific Allocations - 494,924

Non-Current Allocations (a) 423,453 268,605

423,453 763,529

(a) 27th Pay Period Restricted Cash 423,453

Total Non Current Specific Allocations 423,453

23 Inventories

Inventories held for resale:

Bookshop (at cost) 29,066 23,463

Total 29,066 23,463

See also note 2(o) 'Inventories' and note 16 'Trading profit/(loss)'.

24 Receivables

Current

Receivables - trade 471,653 866,570

Receivables - students 119,903 107,808

Receivables - other - -

Accrued revenue 102,765 56,311

Allowance for impairment of receivables (58,406) (26,356)

GST receivable 25,603 64,353

Total current 661,518 1,068,686

Reconciliation of changes in the allowance for impairment of receivables:

Balance at start of year (26,356) (13,749)

Doubtful debts expense (32,050) (12,607)

Balance at end of year (58,406) (26,356)

Not more than 3 months 37,319 353,959

More than 3 months but less than 6 months 51,464 10,401

More than 6 months but less than 1 year 40,389 42,369

More than 1 year 20,143 -

149,315 406,729

Receivables individually determined as impaired as at the end of the reporting period:

Carrying amount, before deducting any impairment loss 88,236 64,153

Impairment loss (58,406) (26,356)

29,830 37,797

25 Other assets

Current

Prepayments 91,589 88,807

Total current 91,589 88,807

Ageing of receivables past due but not impaired based on the information provided to senior

management, as at the end of the reporting period:

The Insitute does not hold any collateral as security or other credit enhancements relating to

receivables. See also note 2(p) 'Receivables' and note 43 'Financial instruments'.


61

2011 2010

26 Non-current assets classified as held for sale

The Institute has no non-current assets classified as held for sale.

27 Property, plant and equipment

Land

At fair value (a) 11,280,000 8,562,000

11,280,000 8,562,000 Buildings

At fair value (a) 34,620,000 25,524,780

34,620,000 25,524,780

Buildings under construction

Construction costs - 104,593

- 104,593 Motor vehicles, caravans and trailers

At cost 1,132,016 1,114,632

Accumulated depreciation (862,466) (732,195)

269,550 382,437

Plant, furniture and general equipment

At cost 1,291,587 1,270,237


366,235 402,279

Computer equipment, communication network

At cost 1,003,271 878,506


482,830 276,608

Marine craft

At cost 78,679 78,678


4,992 7,381

47,023,607 35,260,078

(a) Land and buildings were revalued as at 31 December 2011 by the Western Australian

Land Information Authority (Valuation Services). The valuations were performed during the

year ended 31 December 2011 and recognised at 31 December 2011. In undertaking the

revaluation, fair value was determined by reference to market values for land: $11,280,000

and buildings: $34,620,000. For the remaining balance, fair value of land and buildings was

determined on the basis of depreciated replacement cost. See note 2(g) 'Property, plants

and equipment'.


62

28 Intangible assets

Computer software

At cost 102,270 -

Accumulated amortisation (34,856) -

67,414 -

Reconciliations

Computer software

Carrying amount at start of year - -

Additions 102,270

Amortisation expense (34,856) -

Carrying amount at end of year 67,414 -

29 Impairment of assets

30 Payables

Current

Trade payables 92,484 -

GST payable 31,309 39,833

Accrued expenses 420,270 789,333

Accrued salaries and related costs 395,270 378,638

Paid parental leave payable 7,073 -

Total current 946,406 1,207,804

See also note 2(q) 'Payables' and note 42 'Financial Instruments'.

31 Borrowings

The Institute does not have any borrowings as at 31 December 2011.

There were no indications of impairment to property, plant and equipment or intangible assets

as at 31 December 2011.

The Institute held no goodwill or intangible assets with an indefinite useful life during the

reporting period. At the end of the reporting period there were no intangible assets not yet

available for use.

All surplus assets as at 31 December 2011 have either been classified as assets held for sale

or written off.

Reconciliations of the carrying amounts of property, plant and equipment at the beginning and end

of the reporting period are set out in the table below.


63

2011 2010 $ $

32 Provisions

Current

Employee benefits provision

Annual leave (a) 963,664 827,833

Long service leave (b) 1,032,639 829,048

1,996,303 1,656,881

Other provisions

Employment on-costs (c) 150,357 162,013

Total current 2,146,660 1,818,894

Non-current

Employee benefits provision

Long service leave (b) 569,746 433,552

569,746 433,552

Other provisions

Employment on-costs (c) 36,730 27,924

Total non-current 606,476 461,476

Within 12 months of the end of the reporting period 644,929 557,554

More than 12 months after the end of the reporting period 318,736 270,279

963,665 827,833

Within 12 months of the end of the reporting period 351,547 282,775

More than 12 months after the end of the reporting period 1,250,838 979,824

1,602,385 1,262,599

Movements in other provisions

Employment on-cost provision

Carrying amount at start of year 189,937 156,930

Additional provisions recognised (2,850) 33,007

Carrying amount at end of year 187,087 189,937

33 Other liabilities

Current

Income received in advance (a) 680,829 695,169

Grants and advances 5,180 5,180

Total current liabilities 686,009 700,349

(a) Income received in advance comprises:

Other Government (Commonwealth/Local) 678,793 -

Fee for service - 695,169

Other 2,036 -

680,829 695,169

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

defer settlement for at least 12 months after the end of the reporting period. Assessments

indicate that actual settlement of the liabilities will occur as follows:

(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 the end of the reporting

period. Assessments indicate that actual settlement of the liabilities will occur as follows:

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

employment 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), is disclosed in note 12 'Other expenses'.

Movements in each class of provisions during the financial year, other than employee benefits,

are set out below.


64

2011 2010 $ $ 34 Amounts due to the Treasurer

No amounts due to the Treasurer as at 31 December 2011

See also note 42 'Financial Instruments'

35 Equity

Contributed equity

Balance at start of year 6,842,955 6,842,955

Balance at end of year 6,842,955 6,842,955

Reserves

Asset revaluation surplus


Net revaluation increments/(decrements):

Land 2,718,000 (233,000)

Buildings 9,730,410 (1,602,970)


Accumulated surplus/(deficit)


Result for the period (312,087) (2,719,675)


Total Equity at end of period 46,049,600 33,913,277

36 Notes to the Statement of Cash Flows

Reconciliation of cash

Cash on hand 3,600 3,600

Cash at bank 2,134,904 893,637

2,138,504 897,237

Restricted cash and cash equivalents (refer to note 22

'Restricted cash and cash equivalents') 423,453 763,529

2,561,957 1,660,766

Net cost of services (24,713,040) (21,400,590)

Non-cash items:

Depreciation and amortisation expense (note 9

'Depreciation and amortisation expense) 1,063,086 988,722

Doubtful debts expense (note 12 „Other expenses‟) 32,049 12,607

Superannuation expense 1,107,175 868,988

Resources received free of charge (note 21 „Income from

State Government‟) 358,073 163,786

Fringe Benefit Tax 185,123 119,409

(Increase)/decrease in assets:

Current receivables (a) 382,823 (579,254)

Current inventories (5,603) 9,147

Other current assets (49,236) (45,364)

The Government holds the equity interest in the Institute on behalf of the community. Equity

represents the residual interest in the net asset of the Institute. The asset revaluation surplus

represents that portion of equity resulting from the revaluation of non-current assets.

Cash at the end of the financial year, as shown in the Statement of Cash Flows is reconciled

to the related items in the Statement of Financial Position as follows:

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

operating activities


65

2011 2010 $ $

Increase/(decrease) in liabilities

Current payables (a) 96,394 (4,205)

Income received in advance/grants and advances (14,339) 21,775

Current provisions 327,766 668,098

Other current liabilities (349,269) 1,314,715

Non-current provisions 145,000 (182,765)

Net GST receipts/(payments) (b) (154,910) (101,190)

Net cash provided by/(used in) operating activities (21,588,909) (18,146,121)

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

37 Resources provided free of charge

38 Commitments

Capital expenditure commitments

Within 1 year - 432,160

- 432,160

Non-cancellable operating lease commitments

Commitments for minimum lease payments are payable

as follows:

Within 1 year 339,876 339,315

Later than 1 year and not later than 5 years 244,824 282,870

584,700 622,185

Operating lease commitments

Within 1 year 405,805 656,154

405,805 656,154

These commitments are all inclusive of GST.

39 Contingent liabilities and contingent assets

40 Events occurring after the reporting period

41 Explanatory statement

(a) 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

in these items as they do not form part of the reconciling items.

During the year Kimberley Training Institute engaged in no activities which resulted in providing

resources to agencies free of charge for functions outside the normal operations of the

Institute.

Capital expenditure commitments, being contracted capital expenditure additional to the

amounts reported in the financial statements, are payable as follows:

The Institute 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.

Other expenditure commitments contracted for at the end of the reporting period date but not

recognised as liabilities are payable as follows:

Kimberley Training Institute has no contingent liabilities or contingent assets as at

31 December 2011.

The Institute is not aware of any other matter or circumstances that had risen since the end of

the financial year to the date of this report which have significantly affect the results or the

state of affairs of the Institute in the ensuing or any subsequent years.

This statement provides details of any significant variations between estimates and actual

results for 2011and between actual results for 2010 and 2011. Significant variations are

considered to be those greater than 10 % or $100,000.


66

Significant variances between estimated and actual result for the financial year

Expense $ $ $

Employee benefits expenses 15,853,562 19,787,461 (3,933,899)

Supplies and services 6,647,544 5,442,511 1,205,033

Depreciation and amortisation expense 1,360,724 1,063,086 297,638

Grants and subsidies 111,262 419,100 (307,838)

Other expenses 894,640 1,373,924 (479,284)

Employee benefits expenses

Supplies and services

Depreciation and amortisation expense

Grants and subsidies

Other expenses

Income $ $ $

Fee for service 2,140,679 1,265,172 (875,507)

Student fees and charges 561,700 680,907 199,207

Commonwealth grants and contributions 735,288 1,225,120 489,832

Service appropriation 19,598,499 24,042,882 4,444,383

Resources received free of charge 760,852 358,073 (402,779)

Fee for service

Revenue for fee for service was lower than expected due to a reduction in revenue from

maritime simulator delivery which was projected to be an increase in revenue. This was due

to break in services which resulted from an outcome of upgrading the facilities and software

package of the simulator. The drop in fee for service revenue was compensated overall by an

increase in grants and contributions.

Grants and subsidies were estimated based on historical trends. In 2011 payments to private

providers for delivery were accounted for as a subsidy as opposed to supplies and services.

Employment oncosts increased with an increase to leave liability as a result of the FTE

increase. There was also a large amount of payment acquittals on unspent grant funding from

previous years.

Supplies and services were reduced over the estimate due to the reduction in costs

associated with maritime simulator delivery. In 2011, a procurement contract was established

with Transas to provide software and support which saw a dramatic decrease in contracted

services. Also payments to private providers for training delivery were reconciled and

accounted for correctly as grants and subsidies instead of supplies and services.

Depreciation was reduced from the estimate due to the delay in finalisation of capital

investment programs for Ord Stage 2 and the new Fitzroy Campus establishment. Although

elements of these projects were included in the Valuer General's revaluation of land and of

land and buildings, the final contributed equity amount has not been transferred for both

projects.

Estimate Actual Variation

2011 2011

The main reason for the increase of actuals in comparison to estimates was due to a 17%

increase in FTE count. In 2011 FTE count for permanent staff was 168 and in 2010 was 144

which was a result of an overall 43% in profile delivery. Proportionate to this increase

associated oncosts also increased including GROH housing. Additional to the FTE increase

the District Allowances were also increased as per the Labour Relations circular 13 which

implemented a 16% increase over the Kimberley region as at 01 July 2011. GOSAC salaries

also increased as per the award by 3.75%.

2011 2011

Estimate Actual Variation


67

Student fees and charges

Commonwealth grants and contributions

Service appropriation

Resources received free of charge

Expense $ $ $

Employee benefits expense 19,787,461 16,043,296 3,744,765

Supplies and services 5,452,511 5,903,964 (461,453)

Grants and subsidies 419,100 94,824 324,276

Other expenses 1,373,924 1,059,837 314,087

Employee benefit expense

Supplies and services


Other expenses

Income $ $ $

Commonwealth grants and contributions 1,225,120 487,888 737,232

Service appropriation 24,042,882 18,517,129 5,525,753

Resources received free of charge 358,073 163,786 194,287

Commonwealth grants and contributions

The increase is due to the allocation of payments to private providers for training delivery in

2011.

The increase was due to leave liability movements as a result of the 17% growth in FTE.

There were also significant repayments of unacquitted funds to grants due to unforeseen

circumstances.

The large increase in Commonwealth grants is mainly related to the securing of an ATSI Rural

and Remote grant and additional funding from DEEWR for a collection of smaller grants.

The estimate was based on the amount received for 2009 which significantly decreased over

the 2010 and 2011 periods. This was a result of a decrease in ICT support in 2010 which

slightly increased in 2011.

Significant variances between actual results for 2010 and 2011

The increase in comparative years was a result of an increase of a 43% overall increase in

profile delivery. This resulted in an increase of 17% in FTE count and associated oncosts

including leave provisions and GROH allocation. There was also an increase of 16% in overall

District Allowance and the scheduled increase of 3.75% in accordance with the GOSAC

award.

The variance in supplies and services is a result in a decrease in contracted services relating

mainly to shift in the supplier contract for the maritime simulator delivery. There was also a

reallocation of payments to private providers as grants and subsidies expense.

Student fees revenue increased due to the volume of students based on a higher SCH target

than was originally projected. There was also a significant debt recovery internal process

change with the movement to NCML as the debt recovery agent.

The Institute was successful in being awarded some major grants in 2011 including the ATSI

Rural and Remote funding.

The increase in state funding revenue was due to the estimate being based on a 540,000 SCH

target where the actual achieved was 700,000 representing a 29% increase. The actual

increase over estimate was 25% due to a delay in additional funding and gap for the GOSAC

award increase.

2011 2010 Variation

2011 2010 Variation


68

Service appropriation

Resources received free of charge

42 Financial instruments

(a) Financial risk management objectives and policies

Credit risk

Liquidity risk

Market risk

(b) Categories of financial instruments

The increase in comparative years was a result of the increase of 43% between the 2010

SCH figure of 489,080 and the 2011 figure of 700,000 profile delivery achieved. The actual

increase of Service Appropriation of 30% was lower than the 43% SCH increase due to

perceived economies of scale.

Market risk is the risk that changes in market prices such as foreign exchange rates and

interest rates will affect the Institute's income or the value of its holdings of financial

instruments. The Institute does not trade in foreign currency and is not materially exposed to

other price risks (for example, equity securities or commodity prices changes). The Institute's

exposure to market risk for changes in interest rates relates primarily to the long-term debt

obligations. All borrowings are due to the Western Australian Treasury Corporation (WATC)

and are repayable at fixed rates with varying maturities. Other than as detailed in the Interest

rate sensitivity analysis table at Note 42(c), the Institute is not exposed to interest rate risk

because apart from minor amounts of restricted cash, all other cash and cash are

equivalents and restricted cash non-interest bearing and it has no borrowings other than

WATC borrowings and finance leases (fixed interest rate).

In 2011 the ICT component of resources provided was higher than 2010 due to an increase in

service provided.

Financial instruments held by the Institute are cash and cash equivalents, restricted cash and

cash equivalents, loans, finance leases, borrowings and receivables and payables. The

Institute has limited exposure to financial risks. The Institute's overall risk management

program focuses on managing the risk identified below:

Credit risk arises when there is the possibility of the Institute‟s receivables defaulting on their

contractual obligations resulting in financial loss to the Institute.

The maximum exposure to credit risk at end of the reporting period in relation to each class of

recognised financial assets is the gross carrying amount of those assets inclusive of any

provisions for impairment as shown in the table at note 42(c) „Financial instruments

disclosures‟ and note 24 „Receivables‟.

In addition to cash and bank overdraft, the carrying amounts of each of the following

categories of financial assets and financial liabilities at the end of the reporting period are:

Credit risk associated with the Institute‟s financial assets is minimal because the main

receivable is the amounts receivable for services (holding account). For receivables other

than government, the Institute trades only with recognised, creditworthy third parties. The

Institute has policies in place to ensure 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 Institute's exposure to bad debt is minimal. At the

end of the reporting period there are no significant concentrations of credit risk.

Liquidity risk arises when the Institute is unable to meet its financial obligations as they fall

due. The Institute is exposed to liquidity risk through its trading in the normal course of

business. The Institute 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.


69

2011 2010

Financial Assets $ $

Cash and cash equivalent 2,138,504 897,237

Restricted cash and cash equivalent 423,453 763,529

Receivables (a) 635,915 1,004,333

Financial Liabilities

Payables 915,097 1,868,320

(c) Financial instrument disclosures

Credit risk

Liquidity risk and interest rate exposure

The following table discloses the Institute's maximum exposure to credit risk and the ageing

analysis of financial assets. The Institute's maximum exposure to credit risk at the end of the

reporting period is the carrying amount of financial assets as shown below. The table

discloses the ageing of financial assets that are past due but not impaired and impaired

financial assets. The table is based on information provided to senior management of the

Institute.

The Institute does not hold any collateral as security or other credit enhancements relating to

the financial assets it holds.

The following table discloses the contractual maturity analysis for the Institute‟s financial

assets and financial liabilities and also their interest rate exposures. The maturity analysis

section includes interest and principal cash flows. The interest rate exposure section analyses

only the carrying amounts of each item.

(a) The amount of loans and receivables excludes GST recoverable from the ATO (statutory

receivable).


70

Interest rate sensitivity analysis

Fair values

43 Jointly controlled operations

The Institute has no joint controlled operations.

44

Remuneration of members of the Institute

$ 2011 2010

$160,001 - $170,000 - 1

$190,001 - $200,000 1 -

The total number of the members of the Institute is: 1 1

$ $

The total remuneration of the members of the Institute is: 199,155 166,964

The following table represents a summary of the interest rate sensitivity of the Institute's

financial assets and liabilities at the end of the reporting period on the surplus for the period

and equity for a 1% change in interest rates. It is assumed that the change in interest rates is

held constant throughout the reporting period.

All financial assets and liabilities recognised in the Statement of Financial Position, 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.

Remuneration of members of the Institute and senior officers

The number of members of the Institute whose total of fees, salaries, superannuation, non-

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

Total remuneration includes the superannuation expense incurred by the Institute in respect of

members of the Institute.


71

Remuneration of senior officers

2011 2010

$

$40,001 - $50,000 1 -

$80,001 - $90,000 - 1

$110,001 -$120,000 - 1

$140,001 - $150,000 1 -

$150,001 - $160,000 1 1

The total number of senior officers is: 3 3

$ $

The total remuneration of senior officers is: 394,194 359,400

No senior officers are members of the Pension Scheme.

45 Remuneration of auditor

2011 2010

$ $

Auditing the accounts, financial statements and

performance indicators 62,500 60,000

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

46 Related bodies

The Institute has no related bodies.

47 Affiliated bodies

The Institute has no affiliated bodies.

48 Supplementary financial information2011 2010

(a) Write-Offs $ $

Bad debts 8,422 13,066

Inventory - 5,319

8,422 18,385

49 Special purpose accounts

The Institute did not set up or operate special purpose account.

50 Schedule of income and expenditure by service

The Institute provides only one service (as defined by Treasurer's Instruction 1101 (9) and that

is Vocational Education and Training Delivery.

The number of senior officers other than senior officers reported as members of the Institute,

whose total of fees, salaries, superannuation, non-monetary benefits and other benefits for the

financial year, fall within the following bands are:

The total remuneration includes the superannuation expense incurred by the Institute in

respect of senior officers other than senior officers reported as members of the Institute.

Remuneration payable to the Auditor General in respect to the audit for the current financial

year is as follows:


72

4.1.6 S40 Submission – Statement of Comprehensive Income


S40 SUBMISSION

Statement of Comprehensive Income

2012

Estimate

$

COST OF SERVICES

Expenses

Employee benefits expense 20,349,015

Supplies and services 7,044,015

Depreciation and amortisation expense 1,400,465

Finance costs


Payments to Non TAFE Providers for VET Delivery 345,351

Loss on disposal of non-current assets

Cost of sales 50,753

Other expenses 1,397,909

Total Cost of Services 30,587,508

Income

Revenue

Fee for service 2,001,958

Student charges and fees 812,790

Ancillary trading 51,149

Sales 51,151

Commonwealth grants and contributions 758,817

Interest revenue 93,941

Other revenue 613,033

Total Revenue 4,382,840

Gains

Gain on disposal of non-current assets 20,000

Other gains

Total Gains 20,000

Total income other than income from State Government 4,402,840

NET COST OF SERVICES -26,184,668

INCOME FROM STATE GOVERNMENT

State funds 25,338,550

Assets assumed/(transferred)

Resources received free of charge 263,773

Total income from State Government 25,602,323

SURPLUS (DEFICIT) FOR THE PERIOD -582,345


73

4.1.7 S40 Submission – Balance Sheet


S40 SUBMISSION

BALANCE SHEET

2012

Estimate

$

ASSETS

Current Assets

Cash and cash equivalents 2,306,741

Restricted cash and cash equivalents 85,000

Inventories 36,320

Receivables 1,053,583

Amounts receivable for services

Other current assets 194,117

Non-current assets classified as held for sale

Total Current Assets 3,675,762

Non-Current Assets

Restricted cash and cash equivalents 564,712

Inventories

Receivables

Amounts receivable for services

Property, plant and equipment 45,984,924

Intangible assets

Other non-current assets

Total Non-Current Assets 46,549,635

TOTAL ASSETS 50,225,397

LIABILITIES

Current Liabilities

Payables 1,141,785

Borrowings

Amounts due to the Treasurer

Provisions 1,930,730

Other current liabilities 452,304

Total Current Liabilities 3,524,819

Non-Current Liabilities

Payables

Borrowings

Provisions 714,365

Other non-current liabilities

Total Non-Current Liabilities 714,365

TOTAL LIABILITIES 4,239,184

NET ASSETS 45,986,213

EQUITY

Contributed Equity 19,142,955

Reserves 19,168,158

Accumulated surplus/(deficiency) 7,675,100

TOTAL EQUITY 45,986,213

Liabilities directly associated with non-current assets classified

as held for sale


74

4.1.8 S40 Submission – Changes in Equity Statement


S40 SUBMISSION

CHANGES IN EQUITY STATEMENT

2012

Estimate

$

Balance of equity at start of period 46,568,558

CONTRIBUTED EQUITY

Balance at start of period 19,142,955

Capital contribution

Other contributions by owners

Distributions to owners

Balance at end of period 19,142,955

RESERVES

Asset Revaluation Reserve


Changes in accounting policy or correction of prior period errors

Restated balance at start of period 19,168,158

Gains/(losses) from asset revaluation


ACCUMULATED SURPLUS (RETAINED EARNINGS)


Changes in accounting policy or correction of prior period errors

Restated balance at start of period 8,257,445

Surplus/(deficit) or profit/(loss) for the period -582,345

Gains/(losses) recognised directly in equity


Balance of equity at end of period 45,986,213

Total income and expense for the period -582,345


75

4.1.9 S40 Submission – Cash Flow Statement


S40 SUBMISSION

CASH FLOW STATEMENT

2012

Estimate

$

CASH FLOWS FROM STATE GOVERNMENT

State funds 23,990,987

Capital contributions

Holding account drawdowns

Net cash provided by State Government 23,990,987

Utilised as follows:

CASH FLOWS FROM OPERATING ACTIVITIES

Payments

Employee benefits -18,821,088

Supplies and services -6,938,955

Finance costs


Payments to Non TAFE Providers for VET Delivery -345,351

GST payments on purchases -316,697

GST payments to taxation authority

Other payments -1,397,909

Receipts

Fee for service 1,991,269

Student fees and charges 812,790

Ancillary trading 51,547

Commonwealth grants and contributions 758,817

Interest received 93,941

GST receipts on sales 262,567

GST receipts from taxation authority 113,520

Other receipts 613,033

Net cash provided by/(used in) operating activities -23,122,517

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of non-current physical assets 20,000

Purchase of non-current physical assets -450,000

Net cash provided by/(used in) investing activities -430,000

Net increase/(decrease) in cash held and cash equivalents 438,471

Cash and cash equivalents at the beginning of the period 2,517,982

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 2,956,453


76

4.2 Detailed Key Performance Indicators Information

Certification of Key Performance Indicators We hereby certify that the performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the performance of Kimberley Training Institute and fairly represent the performance of Kimberley Training Institute for the financial year ended 31 December 2011.


77

Desired Outcome Kimberley Training Institute‟s agency level desired outcome is the provision of vocational education and training services to meet community and industry training needs. The Institute‟s mission is to „provide access to lifelong, flexible, high quality learning pathways for individuals, industry and communities through education and training‟.

4.2.1 Effectiveness Indicators KPI 1: Overall Student Satisfaction Student satisfaction is a performance measure that reflects the quality of vocational education and training services provided by the Institute to meet community and industry needs. Student satisfaction was measured through the 2011 Training WA Student Satisfaction Survey, conducted by an independent organisation, Patterson Market Research. Of the students who responded to this survey 96% were either very satisfied or satisfied with their chosen course at Kimberley Training Institute. This compares to the State average of 88% and is a significant increase on the Institute‟s previous satisfaction score from 2010 (86%). The useable population at Kimberley Training Institute was 1,318. The useable returns numbered 242 of which the total sample size was 239. For each stage of the research, a sample frame was created based on the minimum required responses for each quota, and the number of responses that had already been received for each group. Sample sizes were based on achieving a sampling error of no more than ±2.3 (95% confidence) for each of the regional State Training Provider samples.

2008 2009 2010 2011 (1) 2011 Target


90% 90% 86% 96% 90%-95%

Western Australia 85% 86% 87% 88%

Notes: (1) The 2011 Student Satisfaction Survey was conducted by Patterson Market Research in consultation with the Department of Training and Workforce Development. The response rate was 18.4% with a standard error of 2.3%. This is comparable to the State average of 18.8%, and reflects a significant improvement over past years. The Institute has put in place a number of strategies to improve response rates. These include direct contact with students and direct involvement by lecturers to assist students in completing the survey questionnaire. Kimberley Training Institute will continue to pursue a high response rate.


78

KPI 2: Graduate Employment The achievement of graduate employment outcomes is a performance measure that demonstrates the Institute‟s effectiveness in providing vocational education and training services to meet community and industry needs. Kimberley Training Institute achieved 84%, whilst the State average for graduate employment in 2011 was 80%, and the National average was 77%.

YEAR Employed Unemployed Not in Labour Force

2008 (1) N/A N/A N/A

2009 84% 6% 10%

2010 (1) N/A N/A N/A

2011 (2) 84% 6% 9%

Notes: (1) Institute level data for this survey is not available this year, however a National result is provided by NCVER. Institute results are available bi-annually. (2) The 2011 Student Outcomes Survey was conducted by Social Research Centre on behalf of the National Centre for Vocational Education Research (NCVER). The survey targeted students who graduated from a State Training Provider in 2010. In 2011 the graduate response rate for Kimberley Training Institute was 35%, compared to a National response of 42%.

KPI 3: Student Outcomes – Achievement of Main Reason for Studying The achievement by graduates of their main reason for studying is a performance measure that demonstrates the Institute‟s effectiveness in providing vocational education and training services to meet community and industry needs. Kimberley Training Institute achieved 93%, compared to a State average of 88% and a National average of 86%. Percentage - Students achieved reason for study:

Notes: (1) Institute level data for this survey is not available this year, however a National result has been

provided by NCVER. Institute results are available bi-annually.

YEAR Kimberley Training

Institute Western Australia

National

2008 (1) N/A 89% 88%

2009 94% 88% 86%

2010 (1) N/A N/A 85%

2011 (2) 93% 88% 86%


79

(2) The 2011 Student Outcomes Survey was conducted by Social Research Centre on behalf of the National Centre for Vocational Education Research (NCVER). The survey targeted students who graduated from a State Training Provider in 2010. In 2011 the graduate response rate for Kimberley Training Institute was 35%, compared to a National response of 42%.

KPI 4: Achievement of Institute Profile The achievement of Institute Profile is a performance measure that demonstrates the Institute‟s effectiveness in meeting planned vocational education and training services to meet community and Industry needs as identified in its Strategic Plan and in the Delivery and Performance Agreement (DPA) entered into with the Department of Training and Workforce Development. Achievement of Institute Profile compares achieved Student Curriculum Hours (SCH) to planned Student Curriculum Hours (SCH). The original target in the 2011 DPA was 550,000 SCH and the Institute achieved 127.9% of this original target. The overall revised profile target was 700,000 SCH (Addendum No. 3 to the DPA) and the achievement was 703,519 SCH. This represents an achievement of 100.5% against the renegotiated DPA target.

YEAR Planned SCH

(DPA) SCH Achieved

(Census) % Achieved /

Planned

2008 457,030 432,493 94.6%

2009 440,000 446,028 101.4%

2010 (1) 450,000 489,080 108.7%

2011 (2) 550,000 703,519 127.9%

Source: Verified Institute Census Data 2011

Notes: (1) The original planned SCH target in the 2010 DPA was 450,000 SCH. This was negotiated upwards

to 459,890 SCH by way of an addendum (Addendum No. 2 to the 2010 DPA) and then a further increase was granted to 480,473 SCH (Addendum No. 3 to the DPA). Actual SCH achievement against this revised target is 108.7%.

(2) The original planned SCH target in the 2011 DPA was 550,000 SCH. This was negotiated upwards

to 665,000 SCH by way of Addendum No. 1 to the 2011 DPA and then a further increase was granted to 700,000 SCH (Addendum No. 3 to the DPA). The actual SCH achievement against the final revised target is 100.5%.


80

Industry Groups

The following table provides details of the distribution of Kimberley Training Institute‟s Profile delivery, by Student Curriculum Hours, in Industry Groups specified by the Department of Training and Workforce Development:

Industry Groups SCH

Delivered 2008

SCH Delivered

2009

SCH Delivered

2010

SCH Delivered

2011

Planned DPA SCH

2011

Visual and Performing Arts 50,598 48,015 39,547 59,674 40,000 (1)

Automotive 17,240 18,576 9,400 8,162 14,600 (2)

Building and Construction 28,176 38,818 61,724 77,069 100,950 (3)

Community Service 36,131 24,300 13,745 33,790 24,200 (4)

Education and Childcare 30,487 32,470 31,917 55,975 43,500 (5)

Health 0 0 6,570 13,250 6,250 (6)

Finance, Insurance, Property Service Workers

360 3,730 14,200 9,452 4,500 (7)

Metal and Mining 12,197 6,557 7,029 97,084 4,700 (8)

Forestry, Farming and Landcare

63,344 88,061 89,705 102,306 90,600 (9)

Horticulture 15,304 26,490 44,564 28,165 31,700

Personal Service 3,230 0 3,477 26,250 7,900 (10)

Retail 2,485 1,688 15 560 3,700 (11)

Cooking 531 2,029 6,937 16,130 12,200 (12)

Hospitality 21,807 21,161 26,786 17,791 14,150

Tourism 20,390 19,745 21,425 12,455 15,150

Travel Agents 2,525 4,015 2,935 6,330 600 (13)


81

Industry Groups SCH

Delivered 2008

SCH Delivered

2009

SCH Delivered

2010

SCH Delivered

2011

Planned DPA SCH

2011

Transport Trades, Storage and Associated

11,279 2,034 7,307 3,876 8,000 (14)

Accounting and Other Business

0 0 0 3,210 2,000

Management 7,834 5,335 10,710 12,520 9,600 (15)

Office and Clerical 45,825 41,270 28,255 39,530 43,700

Computing 2,015 5,765 3,425 2,570 3,000

Science and Technical Workers

0 1,510 12,780 7,865 8,000

Adult Literacy / ESL 17,733 21,275 21,960 40,075 24,500 (16)

Languages 0 0 2,481 800 2,500 (17)

Targeted Access & Participation Courses

43,002 33,184 22,186 28,630 34,000 (18)

TOTALS (Student Curriculum Hours)

432,493 446,028 489,080 703,519 550,000

Source: Verified Institute Census Data 2011

Notes: 1. Visual and Performing Arts: Art in Derby and Fitzroy Crossing increased as new programs were

offered to support local demand. 2. Automotive: Demand in the Broome area for more pre-apprenticeship and local apprenticeship

training resulted in an increase in delivery. 3. Building and Construction: With the approval from DTWD, hours were reallocated from this area to

mining. 4. Community Services: Demand in Community Services Youth Worker training increased in Broome

and Kununurra to support local requirements. 5. Education and Childcare: Certificate IV in Training and Assessment training increased to satisfy

local demand. Childcare training increased with many students taking up courses in line with the Governments fee free policy.

6. Health: Delivery to aged care courses grew to support the federal regional aged care initiative. 7. Delivery in Certificate II in Security increased to support the development of the Derby Regional

Prison and the detention centre at Curtin Air Base outside Derby. 8. Metals and Mining: The training initiative with Argyle Diamond Mine commenced in 2011 with a suite

of mining courses added to the Institutes scope of delivery. Uptake through RPL was extremely successful. Additional hours were added to this area from Building and Construction and as a result of the May Addendum.

9. Forestry, Farming and Landcare: The Initiative with the Kimberley Pastoral Graziers Association lead to an increase in the number of Pastoral trainees working in Kimberley cattle stations.

10. Personal Service: Fulfilling an increase in the local niche area of Broome hospitality and tourism. This course has been well supported by the Broome local industry and continues to grow to support the local tourism market.


82

11. Retail: The need for retail training has diminished as the larger retailers use in house training options.

12. Cooking: Delivery increased as the number of Chef Apprentices increased. 13. Travel Agents: As a result of local industry demand, the Broome Campus worked with local Travel

Agents to up skill staff. 14. Transport Trades: Storage and Associated: Staffing issues impacted delivery. 15. Management: Uptake of RPL in the Diploma of Management increased. 16. Adult Literacy /ESL: Many students supplemented their vocational training with literacy support,

which increased the delivery through the open learning centres. 17. Languages: Decreased demand for Auslan courses. 18. Targeted Access & Participation Courses: A reduction in the amount of Aboriginal Short Courses and

other 19E programs, and a shift to using more 19B (CGEA) programs.

Non Profile Delivery Kimberley Training Institute delivers a range of programs not incorporated within the Institute Profile to meet community training needs that also reduce dependency on Profile funding. These programs include fee for service and lifestyle courses. Non-profile (Student Curriculum Hours) delivery is presented below as a percentage of overall Profile. Non-Profile Delivery SCH:

2008 2009 2010 2011

2011 Target

Non-Profile Delivery 73,593 66,322 75,654 71,917 85,000

% of Training Delivery

14.5% 12.9% 13.4% 9.3% 13.4%

Source: Verified Institute Census Data 2011 Profile delivery refers to the SCH funded through the Delivery and Performance Agreement with the Department of Training and Workforce Development. Non Profile delivery refers to courses funded otherwise.

4.2.2 Efficiency Indicator KPI 5: Cost per Student Curriculum Hour (SCH) Cost per SCH delivered is a performance measure that demonstrates the Institute‟s efficiency in providing vocational education and training services to meet community and industry needs. The Cost per SCH measure shows the overall unit cost per SCH delivered through both profiled and non-profiled activities based on Total Cost of Services, as detailed in the 2011 Financial Statements. The cost per SCH delivered in 2011 was $36.27.


83

Cost per SCH Delivered:

2008 2009 (1) 2010 (2) 2011 (3) 2011 Target

Total Cost of Services

$20,431,597 $20,408,600 $24,125,588 $28,122,967 $24,903,466

Total SCH Delivered

506,086 512,350 564,734 775,436 631,375

Total Cost per SCH Delivered

$40.37 $39.83 $42.72 $36.27 $39.44

Notes: (1) The higher than expected cost per SCH is attributable to: Lower than estimated SCH achievement in fee for service delivery. Please also refer to the Notes

on KPI 4. Slightly higher overall Cost of Services (+ 1.4%) than was estimated.

(2) The increase in Cost per SCH for 2010 over the original estimates, was due to the following

significant but unforeseen factors which could not be accounted for when the 2010 forward financial estimates were compiled: The Institute incurred $996,589 in additional District Allowance expenses resulting from a granted

increase from 1 July 2010, which also provided back-pay of increased allowances from 1 July 2008.

The Institute incurred extra expenses of $485,333 in additional Annual Leave and Long Service Leave Provisions, as determined by an Actuarial assessment and (mainly) due to increased staff numbers.

If these additional unforeseen costs had not been incurred, the Cost per SCH would have been

$40.10, which is less than originally estimated and only 2.6% above the 2009 result. (3) The reduction in Cost per SCH over that estimated for 2011 is mainly due to the achievement of

some economies of scale with the substantial growth the Institute had in Profile funded delivery over what was originally planned (+28%).

4.3 Ministerial Directives

There were no Ministerial directives received for Kimberley Training Institute relevant to desired outcomes, operational objectives, investment activities or financial activities for 2011.

4.4 Other Financial Disclosures

4.4.1 Pricing Policies Under the Vocational Education and Training Regulations 1996, the Institute may determine fees and charges for services, other than for services prescribed by the Minister for Training and Workforce Development. Kimberley Training Institute has documented fees and charges payable, including those gazetted by the Minister, in its annual Fees and Charges Policy.


84

4.4.2 Capital Works The Institute needs the infrastructure to meet the challenging training demands that growth necessitates across the Kimberley. A number of major developments (such as Ord Stage 2, Argyle Diamond Mine underground expansion, proposed LNG project at James Price Point, Gibson Iron, new West Kimberley Regional Prison and Broome North) have either commenced or are planned for the region. During 2011 two Capital Projects were completed or substantially completed to meet these new demands, as follows:

Ord Stage 2 – Upgrades to Wyndham and Kununurra Campuses The Australian Government, through DEEWR funded $10M (as part of the Ord Stage 2 development) to upgrade and extend the Wyndham and Kununurra Campuses. The Wyndham upgrade comprising two new classrooms, new ablution facilities and a new horticulture facility was completed in March 2011, and is being well utilised. The $9M upgrade of Kununurra Campus was substantially completed by the end of 2011 and all works will be finalised in early 2012. This major redevelopment entails:

Major extensions to the existing Trades Workshop complex, comprising two new classrooms, new Automotive and Carpentry & Joinery workshops, new lecturers‟ office and ablution block.

Redevelopment and extensions to the Horticulture Compound. Two new general purpose classrooms. Horticulture Lab and classroom. New Hospitality classroom. New vehicle garages and compound. Outdoor Learning area.

New Campus at Fitzroy Crossing

This State funded $3M project, which commenced in early 2011, was completed at the end of February 2012. The development of this much needed modern training facility at Fitzroy Crossing, initially incorporates two classrooms, administration offices and ablutions at a new site adjacent to the new District High School.

In 2012 a further three Capital Works Projects are planned to commence (with State funds presently being negotiated):

The first phase of the new Master Plan for Broome Campus and Aquaculture Centre, which comprises a major redevelopment and expansion of the workshop facilities at the main Broome Campus at an estimated cost of $15.46M.

A $6.2M refurbishment and expansion of the existing trade workshop at Loch Street Derby.

A $2.8M refurbishment of the Halls Creek Campus.


85

4.5 Governance Disclosures. Enabling Legislation Kimberley Training Institute was established as an autonomous body on 1 July 1999 under Section 35 of the Vocational Education and Training Act 1996. A name change to Kimberley Training Institute was approved by Cabinet on 7 June 2011. Other Key Legislation Impacting on Kimberley Training Institute’s Activities In the performance of its functions, Kimberley Training Institute also complies with the following relevant written laws:

Aboriginal and Torres Strait Islander Commission Amendment Act, 2005. Anti-Corruption Commission Act, 1988. Archive Act, 1983. Auditor General Act, 2006. Building and Construction Industry Training Fund and Levy Collection Act,

1990. Copyright Act, 1968. Commercial Tenancy (Retail Shops) Agreements Act, 1985. Contaminated Sites Act, 2003. Corruption and Crime Commission Act, 2003. Criminal Code Act, 1995. Disability Discrimination Act, 1992. Disability Services Act, 1993. Education Services for Overseas Students (Registration Charges) Act, 1997. Education Act, 1928. Electoral Act, 1907. Electronic Transactions Act. Employment Dispute Resolution Act, 2008. Employment, Education and Training Act, 1988. Equal Opportunity Act, 1984. Evidence Act, 1995. Fair Work Act, 2009. Financial Management and Accountability Act, 2006. Freedom of Information Act, 1992. Government Employees Superannuation Act, 1987. Immigration (Education) Act, 1971. Immigration (Education) Charge Act, 1992. Income Tax Assessment Act, 1997. Industrial Relations Act, 1979 and Other Legislation Amendment Act, 1995. Limitation Act, 2005. Library Board of Western Australia Act, 1951. Minimum Conditions of Employment Act, 1993. Occupational Safety and Health Act, 1984. Privacy Act, 1988. Public and Bank Holidays Act, 1972. Public Interest Disclosure Act, 2003. Public Sector Management Act, 1994.


86

Public Sector Code of Ethics. Salaries and Allowances Act, 1975. SPAM Act, 2003. State Records Act, 2000. State Supply Commission Act, 1991. Trade Practices Act, 1974. Vocational Education and Training Act, 1996. (Colleges Amalgamation Order 2002). WA Public Sector Code of Ethics, 1996. Workers Compensation and Injury Management Act, 1981. Working with Children (Criminal Record Checking) Act, 2004.

Employment and Industrial Relations Kimberley Training Institute has campuses in Broome, Derby, Fitzroy Crossing, Halls Creek, Kununurra and Wyndham and employs approximately 200 full-time, part-time and casual staff. 55 percent of the total workforce is engaged as lecturing staff (casual and non-casual). 45 percent of the workforce is engaged in a diverse range of non-lecturing positions in areas such as Corporate and Training Administration, Student Support, Facilities and Services, Information Systems and the Maritime Simulator Centre. The average number of full-time equivalents (excluding casuals) employed at each campus over the period 2009 to 2011was as follows:

Campus 2009 2010 2011

Broome 59.75 70.55 95.37

Derby 12.45 12.33 16.27

Fitzroy Crossing 1.85 1.75 2.84

Halls Creek 7.63 7.03 6.39

Kununurra 30.09 30.46 26.40

Wyndham 3.21 3.47 3.88

114.98 125.59 151.15

*Workforce Data taken from the Institute‟s Empower HRMIS. No major industrial relations issues are reportable for the period.

4.6 Other Legal Requirements 4.6.1 Advertising In accordance with Section 175ZE of the Electoral Act 1907, the Institute spent $21,939 (an increase of $4,353 on 2010) through ADCORP Australia for recruitment advertising.


87

The Institute also spent $78,848 on advertising courses and general information, which was spent with the following agencies:

ADCORP $26,531

Cineads $9,740

Haze Media $7,443

Forbes Publishing $5,640

Pindan Printing $4,100

Miscellaneous $27,032

4.6.2 Disability Access and Inclusion Plan Outcomes Kimberley Training Institute is committed to its obligations under Equal Opportunity legislation, the Disability Services Act 1993, the Commonwealth Disability Discrimination Act 1992 and Disability Services Regulations 2004. The Institute‟s Disability Access and Inclusion Plan 2007 – 2011 identifies a number of actions to ensure equity and access in service provision to all students, staff and visitors. The Institute has implemented many initiatives and made significant progress towards access and inclusion for people with disability and medical conditions. Some of these initiatives include:

Phone enrolments and online enrolments are available upon request. Publications are available in accessible formats on request. Innovative assistive technology has been adopted to increase independent

learning and successful participation by students with disability. The Institute has maintained ongoing liaison with community groups, agencies

and disability networks to provide information and actively promote the training opportunities for people with disability or medical conditions.

People with disability and medical conditions have the opportunity to access individualised learning support to ensure access and participation in their training at the Institute e.g. free tutorial support - USIQ, equipment and learning aids have been purchased as required.

In consultation with community groups, customised training has been provided for people with disability promoting pathways to further education, training and employment including Certificate II in Business, Certificates in General Education for Adults (CGEA), Certificate I in Rural Skills and Certificate I in Horticulture, Certificate II Hospitality, Certificate II ATSI, Certificates I, II, III & IV Visual Arts and Contemporary Craft, Certificate III Arts Administration.

Continuous access improvements have included provision of accessible toilets, automatic doors, Easy Access parking bays and updated signage.

All new buildings and major renovations have been designed and built to comply with access Standards.

Staff induction includes information on meeting the access needs and including people with disability or medical conditions.

Information on including people with disability or medical conditions is provided on the Institute website.


88

Feedback is regularly sought from students with disability or medical conditions.

The Institute maintains ongoing liaison and partnerships with community agencies that assist people with disability into training and employment.

The Institute‟s customer feedback process includes options for verbal complaints and support for people with disability to provide feedback.

In compliance with annual reporting requirements, a Disability Access and Inclusion Plan (DAIP) progress report was submitted in July 2011 to the Disability Services Commission indicating that 15 of 20 identified planned strategies were considered completed and two partially completed. The Disability Access and Inclusion Plan 2012 – 2016 is currently being developed and will build on these initiatives and the progress made.

4.6.3 Compliance with Public Sector Standards and Ethical Codes The Institute is committed to ensuring compliance and „best practice‟ requirements of the Public Sector Standards in Human Resource Management, the Public Sector Code of Ethics and the Institute‟s Code of Conduct. Human Resources (HR) policies and procedures are regularly reviewed and updated to ensure compliance with Public Sector Standards. During the reporting period the Institute received one request for review against the Public Sector Human Resource Standards. A subsequent review was undertaken and the Institute was advised that the process under review was compliant with the Standards. All staff have access to HR policies and procedures, including policies that relate to recruitment, selection and appointment, transfer, secondment, temporary deployment and grievance resolution, through the Institute‟s Intranet. Maintaining awareness of the Public Sector Standards and the Code of Conduct is achieved through staff training, newsletters, staff meetings, email communication and the Institute‟s Intranet.

Information on the Code of Ethics, Code of Conduct, Accountable and Ethical Decision Making and Public Sector Standards was provided to staff at Professional Development training in February 2011.

Kimberley Training Institute staff attended Public Sector Commission workshops in both Broome and Kununurra on Public Sector Reform, changes to Public Sector Standards, Accountable and Ethical Decision Making, Managing Conflict of Interest, Gifts and Benefits and Public Interest Disclosure.

Customised training on Public Sector Reform, changes to Public Sector Standards was provided to staff during 2011 at each campus.

All new staff complete an induction program that includes the provision of information concerning the Code of Conduct and Ethics. 72.5 percent of all permanent and fixed term contract staff at Kimberley Training Institute have completed on line Accountable and Ethical Decision Making module awareness training.


89

As required under Section 31 of the Public Sector Management Act 1994, the Institute has complied in 2011 with its reporting requirements to the Office of Public Sector Standards in relation to Public Sector Standards, Codes of Ethics and its Code of Conduct. During the reporting period, no breaches of Public Sector Standards were lodged. The Institute referred one matter of suspected misconduct to the Corruption and Crime Commission (CCC). The CCC was satisfied that the Institute had investigated and dealt with this matter appropriately, no further action was required.

4.6.4 Equal Employment Opportunity Kimberley Training Institute actively promotes a workplace free of discrimination and compliance with legislative requirements. In compliance with human resource obligatory information reporting requirements for the Public Sector Commission, Kimberley Training Institute provides information for the Equal Employment Opportunity sector annual reporting. The information provided is primarily related to employment processes and staffing profile.

4.6.5 Record Keeping Plans In 2011 Kimberley Training Institute (KTI) continued to identify best practice record keeping as part of the implementation of a contemporary system to assist staff with the appropriate management of records as stated in the State Records Act 2000 and the Record Keeping Plan (RKP). The RKP describes how records are created, maintained and disposed in accordance with the Commission‟s Standards and Principles to meet compliance requirements. A Project Manager was employed by KTI to implement Total Records and Information Management (TRIM) across KTI‟s six campuses. As part of this implementation key personnel in priority areas received TRIM training. KTI continues its involvement in the Records Management Network to keep up to date with TRIM software development, legislative requirements and the standardisation of record management processes across State Training Providers in Western Australia. Records Awareness Training (RAT) has been completed by 88 KTI staff and is an obligatory component of induction for all new employees. KTI offer the RAT module online. This online module provides the prerequisites of their role and responsibility in compliance with record keeping. In January 2012 KTI will upgrade Hewlett Packard‟s TRIM to Version 7.1 providing an improved system which addresses known issues with previous versions and a more policy based records management system with added benefits which include:

Integration tools for the Microsoft Office Suite. TRIM integration behaviour, i.e. opening and saving documents. An improved web client. Improved stability.


90

KTI has implemented an electronic document management environment and currently has 75 active users of TRIM. In 2012 KTI we will set up a training schedule and offer ongoing support to staff with records management, archiving and correct disposal of records. The records management user manual is available to all staff via the Intranet and provides accurate information to assist employees to comply with their recordkeeping responsibilities.

4.6.6 Freedom of Information The Institute publishes a range of documents that provide information to staff and the community. Publications are available from the Institute and many are widely distributed to interested parties and the broader community. The Institute‟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 Kimberley Training Institute P O Box 1380 Broome WA 6725 Telephone: 08 9192 9104 The Institute did not receive any applications under the auspices of the FOI Act in 2011.

4.6.7 Public Disclosures

The Public Interest Disclosure Act 2003 came into effect on 1 July 2003 requiring the Institute to:

Facilitate the disclosure of public interest information. Provide protection for those making disclosures. Provide protection for those who are the subject of a disclosure.

In accordance with the Act, the Institute has appointed a Public Interest Disclosure (PID) Officer and has published and promoted internal policies and procedures related to its obligations. There were no PID applications received for the reporting period.

4.7 Government Policy Requirements 4.7.1 Occupational Safety, Health and Injury Management The Institute is committed to ensuring compliance with the requirements of the Occupational Safety and Health Act 1984 and Workers‟ Compensation and Injury Management Act 1981. Kimberley Training Institute remains committed to monitoring, management and development of strategies to reduce workplace injuries and accidents.


91

Kimberley Training Institute has appointed OSH representatives and actively encourages and promotes their involvement in the prevention, identification and implementation of OSH strategies. The OSH Committee, including the employee representatives, form the key to occupational safety and health consultation within Kimberley Training Institute. The Committee members appointed, location and details are communicated to all employees. The members are accessible and effectively utilised by both management and employees in the discussion and resolution of occupational safety and health issues. The Institute‟s OSH Committee convenes on a bi-monthly basis to discuss and resolve occupational safety and health issues, review hazard and incident reports and review progress against strategic objectives. In April 2010 the Institute requested an independent audit of its Safety Management System (SMS) with the intent of identifying areas for improvement. As a result of this audit and gaps identified within the Occupational Health and Safety Management Systems (OHSMS) scoring system the Institute has developed an OSH Action Plan 2010-2013 addressing the identified recommendations. Progress against the recommendations is provided to the OSH Committee, Managing Director and Governing Council. The recommendations and progress was audited by the Director of Corporate Services and OSH Coordinator in August 2011. Kimberley Training Institute along with other State Training Providers contributed to the extensive review of the Institute‟s OSH Manual. The Training Agencies Occupational Safety and Health Manual was developed and implemented in August 2011. This document replaces the existing Institute‟s OSH Manual. The Institute reviewed and updated its OSH Policy Statement (endorsed by the Managing Director, Safety and Health Representative and OSH Consultant) in October 2011. The OSH Policy Statement is promoted to all staff on the Intranet and throughout each campus. Evacuation drills were conducted throughout the year. In addition, a number of safety and ergonomic assessments were undertaken in areas with open discussion and feedback to staff and managers. There were 14 reported accidents/incidents recorded during 2011. Three involved students; one involved a visitor; seven involved staff members and the remaining three involved damage to property. Three cases required first aid assistance and/or referred for treatment by ambulance or medical practitioners.

Indicator Target 2010 - 2011 Institute Performance

Number of fatalities Zero (0) Zero

Lost time injury/disease (LT/D) incidence rate

Zero (0) or 10% reduction on previous year

One

Lost time injury severity rate Zero (0) or 10% improvement on previous year

Zero


92

Indicator Target 2010 - 2011 Institute Performance

Percentage of injured workers returned to work within 28 weeks

Actual percentage result to be reported

100%

Percentage of managers trained in occupational safety, health and injury management responsibilities

Greater than or equal to 50%

91%

List of Acronyms AACAP Army Aboriginal Community Assistance Program AASB Australian Accounting Standard Board ABS Australian Bureau of Statistics ADM Arygle Diamond Mine AEDM Accountable and Ethical Decision Making AEETC Aboriginal Education, Employment and Training Committee AQF Australian Qualification Framework AQTF Australian Quality Training Framework ATSI Aboriginal and Torres Strait Islander BAC Broome Aquaculture Centre BMSC Broome Maritime Simulation Centre BMW Building Management and Works CAVSS Course in Applied Vocational Study Skills CCC Corruption and Crime Commission CDEP Community Development Employment Programs CETO Community Employment and Training Officers CGEA Certificates in General Education for Adults CALS Clontarf Aboriginal Life Skills COAG Council of Australian Governments DAIP Disability Access and Inclusion Plan DEEWR Department of Education, Employment and Workplace Relations DoHA Department for Health and Aging DPA Delivery and Performance Agreement DTWD Department of Training and Workforce Development EBT Employment Based Training EDRMS Electronic Document Records Management System EKCDEP East Kimberley Community Development Employment Programs ESL English as a second language FaHCSIA Department of Families, Housing, Community Services and Indigenous Affairs FFS Fee for Service FIFO Fly in/Fly out FMG Fortescue Metals Group Ltd FOI Freedom of Information FTE Full Time Equivalent GROH Government Regional Officers Housing GESB Government Employees Superannuation Board GSS Gold State Superannuation Scheme HR Human Resources ILC Indigenous Land Council


93

ITAS Indigenous Tutorial Assistance Scheme JSA Job Services Australia KEBAP Kimberley Education Based Accommodation Program KES Kimberley Employment Services KGT Kimberley Group Training KLC Kimberley Land Council KRSP Kimberley Regional Service Providers KTI Kimberley Training Institute LIPS Local Implementation Plans LLN Language, Literacy and Numeracy LLNP Literacy Language and Numeracy Program MG Yawoorroong Miriuwung Gajerrong Yirrgeb Noong Dawang Aboriginal

Corporation MLCR module load completion rate NCVER National Centre for Vocational Education Research NESB non English speaking background OLC Open Learning Centre PID Public Interest Disclosure RAT Records Awareness Training RDA Regional Development Australia RKP Record Keeping Plan RPL Recognition of Prior Learning RSD Remote service delivery RTO Registered Training Organisation SPAR Staff Planning and Review System SCH Student Curriculum Hours SMS Safety Management System TAE Training and Assessment TI Treasurer's Instruction TRIM Total Records and Information Management USIQ Underpinning Skills Industry Qualifications VET Vocational Education and Training VETiS Vocational Education and Training in Schools WELL Workplace English Language and Literacy WSS West State Superannuation Scheme

kimberley training institute - parliament of western … · people with a non-english speaking...

Documents