Annual report 2010

GREAT SOUTHERNINSTITUTE OF TECHNOLOGY

2010 ANNUAL REPORT

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ContentsOverview of Great Southern Institute of Technology �� 4Managing Director’s Report �� 4Governing Council Chair’s Report �� 7Governing Council �� 9Operational Structure �� 11Legislation �� 12Performance Management Framework �� 13Agency Performance�� 15Directorate Reports �� 17Corporate Services Directorate �� 17Student Services Directorate �� 19Training Services Directorate �� 21Business and Creative Industries �� 22Communication and The Arts �� 23The Environment and Primary Industries �� 24Health Sciences and Community Services�� 26Trades and Allied Industries �� 28Skills Development Centre �� 29Library Resource Centre �� 31Significant Issues Affecting the Agency �� 32Disclosures and Legal Compliance �� 35Financial Statements �� 38Appendix 1�� 62Certification of Performance Indicators �� 64Other Financial Disclosures�� 72Governance Disclosures �� 72Advertising �� 73Disability Access and Inclusion Plan Outcomes �� 73Compliance with Public Sector Standards and Ethical Codes �� 74Recordkeeping Plan �� 74Sustainability �� 76Occupational Safety and Health (OSH) �� 76Principles of Public Sector Governance �� 77Authority for Directions �� 77Strategic and Business Plans �� 77International Students�� 77

The use of the word ‘Aboriginal’ in this document respectfully refers to the Aboriginal And Torres Strait Islander

people of Western Australia

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Section 1

Overview of Great Southern Institute of Technology

Managing Director’s Report

I am pleased to present my report on the performance of Great Southern Institute of Technology in 2010�

This was a groundbreaking year in the history of the institute – a year of furthering partnerships with industry and promoting workforce development both within the Great Southern region and across the State�

With 430 staff and 6370 students in 2010, Great Southern Institute of Technology reaches all over Western Australia from its base in the State’s south� To achieve this, some lecturers travel as far as Kununurra to deliver workplace training, while the option of external studies extends this reach to a global scale�

Of the two most notable developments for the institute during the year, the name change in April had the broadest impact on the institute’s direction and its position in the local training environment�

In response to the Minister for Training and Workforce Development’s call for TAFE colleges to reinvent themselves, the name change came after several months of preparation and was a much-anticipated event within the institute because of the new direction it signalled�

The new name and image have been readily adopted by the communities the institute serves, and I am proud of the way in which the institute’s staff readily embraced, and promoted, the new brand�

The second major event for the year was the restructure of the institute’s executive following a functional review report compiled by an independent consultant in the early part of 2010�

Essentially, this resulted in the establishment of a smaller executive made up of the Managing Director and three directors heading the Divisions of Training Services, Student Services and Corporate Services�

Six delivery portfolios were established under the Training Services Directorate, including the new portfolio of Communication and The Arts, which includes art, external studies, prisons, literacy and numeracy, and VET in Schools�

The other five portfolios are now named as follows:

• The Environment and Primary Industries

• Business and Creative Industries

• Trades and Allied Industries

• Health Sciences and Community Services

• Skills Development Centre�

Such is the ability of the institute’s staff to accept and adapt to change that by the end of

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the year, they had settled well into the new reporting structure�

July 19-21 marked the first time the institute’s Professional and Career Development (PACD) event had been held over three days�

This extended period allowed greater scope than in previous years for the number of learning sessions available to each staff member and the range of offerings both in instruction and activities�

The Strategic Plan for 2010-2012 was launched during the PACD� The institute’s commitment to workforce development is demonstrated by its constant revisiting and reworking of the plan, and at the end of the year, a new plan for 2011-2012 was being drawn up�

The Skills Development Centre exceeded its targets for fee-for-service training and attracted 26 full-time international students from Europe, Asia, South America and Africa�

The push to boost high-level training enrolments (Certificates IV and above) brought a 38�5 per cent increase, 35�5 per cent higher than the performance indicator target set by the Governing Council�

Similarly, the target of 3 per cent for apprentices and trainee commencements was exceeded by 14�7 per cent�

The institute continued to strengthen partnerships with the Aboriginal community, and the number of Aboriginal people enrolled in employment-related training exceeded the one per cent target by 22 per cent�

Efforts to increase retention of students were rewarded with a decrease in the module withdrawal rate, down 3 per cent on last year to 14 per cent�

A massive 198 per cent increase in the number of successful training modules completed under Recognition of Prior Learning was also very satisfying�

Preparing our young people for the workforce by providing more flexible and accessible pathways to higher vocational education and training and university qualifications is always a priority for the institute� So it is pleasing to report a 45�1 per cent increase in apprenticeship enrolments, which far exceeded the 3 per cent target�

One of the most gratifying statistics is the institute’s standing in a student satisfaction survey carried out by independent consultant Patterson Market Research� With a result of 91�3 per cent of students who were satisfied or very satisfied overall with their training, well above the State average of 86�7 per cent, and the second highest result in regional Western Australia� The overall graduate satisfaction for the institute, in the last biannual survey published in 2009, was at 90�0%, which is above the State (87�2%) and national (86�2%) averages�

To foster the contemporary teaching environment at the institute, e-learning was a focus for delivery strategies and lecturers embraced the Moodle platform, which is being used extensively throughout the institute�

With the expansion of the move to electronic media, wireless technology was implemented and projectors installed into all classrooms to add another dimension to delivery�

In the Library Resource Centre, a trolley of 15 laptop computers was introduced for use in any classroom and a bank of netbooks extended the opportunities for students surfing the Internet�

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Investment in capital works continued with the building of a new block for The Environment and Primary Industries portfolio� Staff moved in at the end of 2010 ready for classes in 2011�

Funding totalling $3�9 million was received from the Australian Government through the Teaching and Learning Capital Fund for Vocational Education and Training, Better TAFE Facilities and Training Infrastructure Investment for Tomorrow elements�

This supported the Wool Harvesting and Aquaculture relocation for The Environment and Primary Industries portfolio as well as roof replacements and various maintenance and upgrade projects�

With sustainability a priority for the institute, several of these projects take the campus into a new era of energy savings� They included replacing single-flush toilet systems with dual flush, updating a gas boiler with energy-efficient gas units, installing a sun-blocking walkway, and fitting automatic toilet lighting�

Major repairs to driveways and concrete paths have improved safety, car park lighting was installed, a concrete floor was replaced in a trades workshop and an asbestos roof was removed�

The focus on sustainability has influenced the way the institute works and last year, savings of approximately $46,000 were made through recycling efforts and several initiatives to reduce paper usage� These savings will fund the installation of solar panels to heat water in the aquaculture centre 24 hours a day – the first major project from this fund and one which will significantly reduce the drain on institute resources�

To keep staff and students informed of news across all campuses, a monthly newsletter, the Great Southern Gazette, was started� In line with the institute’s policy of reducing paper use and printing costs, this is only published online�

I congratulate the staff of Great Southern Institute of Technology on their commitment, which positions the institute as a training leader working within a contemporary business environment�

The lecturers’ continued delivery of quality training and education has been a major factor in the institute’s success in 2010�

The executive has also worked hard to ensure scrupulous accountability in planning, decision making, evaluation and reporting�

I sincerely thank our industry partners, sponsors and key stakeholders, whose support and generosity ensure a prosperous future for our students and for the institute�

Finally, my appreciation goes to members of the Governing Council for their valuable dedication and guidance throughout another productive year�

I take great pleasure in presenting this document to you�

LIDIA ROZLAPA

CEO/Managing Director

February 10, 2011

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Governing Council Chair’s Report

I would like to congratulate the Managing Director and staff of Great Southern Institute of Technology on another successful year, and thank them for their continued commitment to delivering excellence in training and education�

I am pleased to report the institute’s prudent management of its financial resources and reserves has again been demonstrated throughout the year, making it one of the few institutes operating in surplus�

Performance indicator targets have largely been met and in many cases exceeded, reflecting the dedication of staff upholding the high professional and academic standard which the institute has established over many years�

The institute’s influence within the State of Western Australia as well as the Great Southern should not be underestimated�

The Governing Council is satisfied that the institute’s strong financial position is matched by its capability to answer a broad scope of workforce training needs now and in the future, through its adherence to a strategic workforce development plan�

It not only responds to industry demands for trained and qualified staff, but the institute also anticipates those demands and delivers timely and relevant training�

The institute’s partnerships with local high schools have created new opportunities for youth, and higher numbers of school leavers signed up for apprenticeships and traineeships last year than in the previous year�

It was pleasing to see the high professional and academic standards upheld throughout the year, resulting in several achievements worthy of note here:

• Forestry coordinator Andrew Nicholson reached the finals of the Western Australian Government’s State Trainer of the Year Awards

• The Certificate I in Hospitality course for people with a disability, delivered for the first time in 2010, brought rewards for dedicated staff Disability Liaison Officer Wendy Macliver and Hospitality Lecturer Andrea Gallagher when it was named the winner in the Count Me In Awards in the category of post school/tertiary education and training

• The Denmark Music Foundation chose Great Southern Institute of Technology as the recipient of $10,000 in scholarship funding for two students a year for 10 years, and the first two students to receive it were Katie White and Kris Nelson�

The Governing Council values the contributions of Great Southern Institute of Technology’s stakeholders and industry partners� These vital relationships allow the institute to develop its courses to maximise opportunities for communities�

My thanks go to Managing Director Lidia Rozlapa for her strong leadership of the institute� Her staff have met all objectives while delivering excellence in education and training throughout the region�

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Thank you also to the members of the Governing Council for their dedication to Great Southern Institute of Technology, and their interest in the welfare of not only the institute, but also the communities it serves�

Len SmithChair, Great Southern Institute of Technology Governing CouncilFebruary 11, 2011�

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Governing CouncilThe Governing Council consists of a Chairperson, Deputy Chairperson, the Managing Director and 10 other members appointed by the Minister for Training and Workforce Development for their expertise in education and training, industry or community affairs and for their ability to contribute to the strategic direction of the institute�

While the Managing Director has responsibility for the day-to-day operations, the Governing Council oversees the strategic and overall direction of the institute through the execution of its statutory functions within the Vocational Education and Training Act 1996, the Public Sector Management Act 1994 and the Financial Management Act 2006�

Members of the Governing Council during 2010

Len Smith – Chair

Len is the owner and manager of the Comfort Inn in Albany and a long-term and significant contributor to the local community, particularly through his involvement with key tourism and training bodies� He is currently a board member of the Great Southern Development Commission�

Scott Leary – Deputy Chair

Scott is a director of Albany City Motors which is a well established local motor dealer for Holden, Nissan and Isuzu� With 15 years’ experience in the motor trade and the previous 12 years in the finance industry with Westpac, and now as financial controller, Scott offers a working knowledge of management and processes�

Lidia Rozlapa – CEO/Managing Director

Lidia is the current Chief Executive Officer/Managing Director of Great Southern Institute of Technology and holds a Bachelor of Education and several related teaching qualifications� She is a member of the Public Providers’ Group and Client Management Council, as well as participating in the Managing Directors’ Network and Regional Managing Directors’ Network� She has seen the institute grow from 250,000 Student Curriculum Hours (SCH) to 1�4 million SCH and has expanded the training reach throughout the 40,000 square kilometres of the Great Southern, with campuses in Albany, Katanning, Denmark and Mount Barker�

Jane Trethowan

Jane is the Deputy President for the Shire of Kojonup, initially elected to the local council in 2003� Jane farms 3700 acres at Kojonup with her husband Nick� Jane and Nick’s farming operation is sheep and grain-focused, with some innovative use of perennial plants in their grazing and cropping enterprise� Jane is the representative on the Governing Council from the Great Southern Zone of the Western Australian Local Government Association�

Graham Harvey

Graham is the Chief Executive Officer of the Albany Chamber of Commerce and Industry, the Great Southern’s peak business organisation� He is also president of Regional Chambers of Commerce (WA)� Graham is a bestselling author and a previous Western Australian Professional Speaker of the Year� His qualifications include a Bachelor of Commerce from Curtin University, majoring in Tourism Management�

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Owen Starling

During 2010, Owen was the Regional Manager Great Southern for Court and Tribunal Services, which covers the Albany, Katanning and Narrogin Magisterial Districts, and was the Clerk of the Court at the Albany Magistrate’s Court� Owen worked within regional courts for 24 years and had gained extensive experience within the State Public Service� He was also an active member of the Army Reserve with 11/28 RWAR and was a senior umpire of Australian Rules Football within the region�

Antony Smith

Born and educated in England, Tony migrated under the assisted passage scheme in 1960 to work as a Jackeroo in NSW and then as an Overseer at Forbes NSW, before buying a farm at Denbarker, WA� He founded Plantagenet Wines in 1974 and although retired, Tony still serves as chair of the company board� He served on wine industry bodies at regional, State and federal levels, the board of the Great Southern Development Commission and chaired the Great Southern Area Consultative Committee� He is currently on the board of the Albany UWA Foundation (vice chairman), and Mount Barker Community College Farm committee� He runs an aquaculture venture at Denbarker�

Suzanne SeeleySuzanne works as Clinical Lead for the redevelopment of the new Albany Health Campus� Prior to this appointment, Suzanne was working as the Nurse Director for WA Community Health Services (WACHS) – Great Southern, moving to Albany after working in Broome as the Director of Nursing for six years� Suzanne has many years of nursing and hospital management experience and has worked in both the public and private health sectors as well as representing WACHS on the WA Palliative Care Advisory Committee� Suzanne is committed to working with the community and staff of at Albany Hospital to help develop a new facility which is well designed and has work processes which assist staff to deliver a high standard of care to patients�

Anne StaffordAnne held a senior executive position at Central TAFE in Perth for eight years before marrying an Albany man in 2002, and taking early retirement to live in Albany� Since then she has chaired the board at Albany Worklink, been a member of the board at Parklands School, and been a volunteer tutor to an Afghani immigrant and to students at Lockyer school� Her qualifications are in anthropology and teaching�

Suzanne YewersSuzanne is the administration and training manager for Fletcher International WA which is Australia’s largest exporter of sheep/lamb meat and a textile processor� Suzanne is currently studying two Diplomas, one in TAE Training and Assessment and the other in Diploma of Sustainability� She is a volunteer for the Narrikup Red Cross Unit and Albany Community Radio, and loves sport – she is a paddler in the Denmark Dragon Boat Club�

Natalie DimmockNatalie was a Senior Associate with the HHG Legal Group and had previous experience as a lecturer with Curtin University, Great Southern TAFE and co-ordinator of Rainbow Coast Family Services in Albany� Her qualifications included Bachelors of Laws and Psychology with a Minor in Aboriginal and Intercultural Studies from Edith Cowan University� Natalie was also involved in community work with Bicycle Victoria as team leader and organiser of regular bicycle events around Australia�

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Bruce Rudeforth

Bruce joined Latro Lawyers in Albany as an associate in 2009� He grew up in Albany and was educated in Albany and Perth� As the youngest member of the Governing Council and a relatively recent university graduate, Bruce shares the outlook of young people and understands the challenges students face� He also keeps abreast of new technologies and their place in the training of tomorrow’s workforce�

Simon Lyas

Simon relocated with his family from Canberra to Denmark in February 2009 and was appointed executive officer of Regional Development Australia Great Southern two months later� In this position, he identifies the region’s development opportunities, which also allows him to anticipate industry’s needs for the future of the workforce� A former primary and high school teacher, Simon has a particular interest in education and training� He also brings extensive experience in government and public sector management to the Governing Council�

Retired during 2010Natalie DimmockOwen Starling

Operational Structure

The institute reports to the Minister for Energy; Training and Workforce Development; Indigenous Affairs, The Hon� Peter Collier BA DipEd MLC�

Governing Council

Director Training Services

Sue Bennett-Ng

Director Corporate Services

Kevin O’Connor

Director Student Services

Chris Jones

Managing DirectorLidia Rozlapa

Executive

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Legislation

The following legislation applies to the operation of the institute:

State

Auditor General Act, 2006

Building and Construction Industry Training Fund and Levy College Act, 1990

Corruption and Crime Commission Act, 2003

Curriculum Council Act, 1997

Disability Services Act, 1993

Education Service Providers (Full Fee Overseas Students) Registration Act, 1991

Electronic Transactions Act, 2003

Equal Opportunity Act, 1984

Financial Management Act, 2006

Freedom of Information Act, 1992

Industrial Relations Act, 1979

Industrial Training Act, 1975

Library Board of Western Australia Act, 1951

Liquor Control Act, 1988

Minimum Conditions of Employment Act, 1993

Occupational Safety and Health Act, 1984

Public Interest Disclosure Act, 2003

Public Sector Management Act, 1994

School Education Act, 1999

State Records Act, 2000

State Superannuation Act, 2000

State Supply Commission Act, 1991

Vocational Education and Training Act, 1996

Workers Compensation and Injury Management Act, 1981

Working with Children (Criminal Record Checking) Act, 2004

Commonwealth

Copyright Act, 1968

Education Services for Overseas Students Act, 2000

Education Services for Overseas Students (Registration Charges) Act, 1997

Trade Practices Act, 1974

Training Guarantee (Administration) Act, 1990

Fair Work Act 2009

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Performance Management FrameworkThe institute has a strategic plan with strategies aligned to the Training WA outcomes�

These strategies will result in:

• A skilled workforce

• A contemporary apprenticeship and traineeship system

• Individual participation in training

• Support for regional communities

• A vibrant and diverse training market

• Training system capability and capacity�

The institute has developed and assessed strategic risk based on these outcomes and also linked these to the institute’s business plan�

In addition, the institute analyses monthly performance against outcomes specified in the Managing Director’s performance agreement, delivery and performance agreement and institute business plan�

These indicators are: (legend: DPA = Delivery Performance Agreement; MD = MD’s performance Agreement and Assessment; OPM refers to operational performance measures)

Item Measurement type SourceEmployment-based training

TRS commencements and SCH, numbersin training

DPA, MD

Aboriginal training Course enrolments MDAboriginal Certificate III+ Course enrolments DPA, OPMDisability Course enrolments DPACertificate IV and above Course enrolments DPADiploma and above Increase in activity MD15-19 Course enrolments DPA20-24 Course enrolments DPARecognition of Prior Learning

SCH, unit enrolments MD

Responsiveness to traininginitiatives (eg Skills FormationTaskforce initiatives and flexible and responsive delivery and assessment)

Lecturing staff trained in new ways ofworking

MD

Skill shortage delivery SCH MD, DPA

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In addition, the institute has a risk management system which ensures that critical successfactors for key activities are defined and risk assessed accordingly�

Item Measurement type SourceAddress recommendations of the Office of the AuditorGeneral’s 2008 Report

Decrease attrition (SCH) MD

Aboriginal School Basedtraineeships

Student numbers MD

Continued development ofschool, TAFE and universitypathways, particularly at higher qualification levels

SCH, student numbers MD

Aboriginal higher completionsat higher levels

Module Load Completion Rate

MD

Repeat Business % pre-existing clients OPMProportion of Regional Delivery

% SCH OPM

%15-19 in Cert III+qualifications

% SCH OPM

Delivery Satisfaction % satisfaction from surveys

OPM

Module Load CompletionRates(Profile)


OPM

Module Load Completion Rates(ATSI)


OPM

Module Load CompletionRates(Tender)


OPM

Achievement of College Profile (separated for EBT, SSI, GI)

% achieved DPA, OPM

Invalid Module Enrolment rate

Invalid Enrolment rate DPA, OPM

International Activity SCH OPMProportion of staff who have completed the Certificate IV Training and Assessment

% of staff OPM

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Section 2Agency PerformanceEstablished in 1974, Great Southern Institute of Technology is the region’s largest training provider, covering an area of 40,500 square kilometres� The institute’s capacity for training stretches right across the region with more than 10 sites, including four major campuses�

The primary campus is located in Albany, with additional campuses in Denmark, Mount Barker and Katanning� All hinterland campuses offer a broad range of qualifications, as well as professional and skills development courses to suit local community and business needs� Each year, more than 350 nationally accredited qualifications are offered, from Certificate to Advanced Diploma level, and university pathways� The institute’s student population exceeds 6300, with student numbers steadily increasing over recent years�

Great Southern Institute of Technology qualifications are structured within six key delivery areas:

• Business and Creative Industries�

• Health Sciences and Community Services

• Trades and Allied Industries

• The Environment and Primary Industries

• Communication and The Arts

• Skills Development Centre�

Alternative study options are made available through online or paper-based external courses; delivery and assessment in the workplace; Recognition of Prior Learning and through a blended delivery approach offering convenience and flexibility�

The institute manages and delivers approximately 1�15 million Student Curriculum Hours (SCH) throughout Western Australia� These hours are spread over programs won under competitive tendering arrangements, Western Australian Training and Workforce Development profile-funded programs, traineeships and apprenticeships, Vocational Education and Training in Schools (VETiS), and auspicing programs�

Great Southern Institute of Technology provides vocational education and training products within the Australian Qualification Framework (AQF), consisting of training packages and courses that are accredited with the Training Accreditation Council (TAC)� The institute offers a range of qualifications from Certificate to Advanced Diploma, university pathways and customised fee-for-service training�

A Customer Service Centre operates at the Albany campus which amalgamates all student services into one centralised and easily accessible facility� Student services include:

• Well-equipped, modern facilities• Professional career guidance• Skills recognition/Recognition of Prior

Learning• Disability Liaison Officer• Library Resource Centre• Student café• Student recreation area

• Accommodation services• External delivery centre• Free internet and email access• Career and employment services• Free counselling service• Literacy and numeracy support for

student success�

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Additional Services

Great Southern Institute of Technology also offers a wide range of specialised services including:

Age %15-24 33�925-45 38�946+ 27�2

Delivery Level %Certificate I 15Certificate II 20Certificate III 35Certificate IV 19Diploma and Above 11

• Workforce development

• Workplace training and assessment

• Apprenticeships and traineeships

• Risk management

• Corporate training

• Industry consultancy

• Bachelor of Science (Nursing) through Curtin University�

Student Profile 2010

Total student numbers = 6372

46% female students

54% male students

8% of students are of Aboriginal and/or Torres Strait Islander origin

7% of students have reported a disability

Median Age = 35

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Directorate Reports

Corporate Services Directorate

Role and Function

The Corporate Services Directorate provides institute-wide support in the areas of Finance, Human Resources, Facilities and Services, Capital works, Information Technology, Records Management and Business Systems� Achievements

All outcomes have been achieved for this directorate� The following represents some of the more significant achievements�

Capital and Minor Works

Completion and handover of The Environment and Primary Industries buildings on Anson Road have provided the institute with updated facilities for wool classing and aquaculture, a science laboratory, three new classrooms and accommodation for lecturers and administration staff�

This construction project was achieved at a final cost of $3�1 million, $2�4 million of which was provided under the Training Infrastructure Investment for Tomorrow (TIIFT) Fund and the balance out of institute reserves�

Funding of $2 million provided by the Better TAFE Facilities (BTF) program was fully expended on maintenance and minor works� The major items at the Albany Campus were reroofing D Block, upgrading roads, car parks and paths and a new boiler for D Block� A new demountable class room was delivered to the Denmark Campus�

Information and Communication Technology

The institute has established a wireless network across the Albany campus� Initially this network will allow staff to use wireless-enabled equipment to access online systems and services where network cabling does not exist�

With future enhancements it will allow students and guests to access online services using their own devices in a secure manner�

When completed, a core network and edge switch upgrades will provide capacity to deliver higher network speeds to the desktop�

A “warm” disaster recovery site has been established in the new Environment and Primary Industries building on Anson road� This new site houses server and storage systems that replicate those currently being used in the production environment which provides strong business continuity and disaster recovery capability�

Human Resources

This section was instrumental in planning, managing and implementing the recommendations for organisational change set out in the Functional Review that was carried out in the first half of the year and subsequently endorsed by the institute Executive and Governing Council�

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The institute developed an Occupational Health and Safety Framework that sets out priorities and an 18-month action plan� Along with a significant commitment of resources, this framework demonstrates the institute’s determination to provide a safe and healthy working and learning environment to our staff and students�

In 2010, the institute trialled a three-day Professional and Career Development event at the Albany Campus� This highly successful event ensured all staff have access to professional and career development as well as providing an opportunity for staff to network and share experiences�

Human Resources staff finalised the customisation of six online modules dealing with accountable and ethical decision making and rolled them out to all staff� This training is in response to Government Policy and is aimed at increasing staff understanding of the importance of acting ethically in all facets of their working lives as well as providing them with practical advice on dealing with conflicts of interest�

Business Systems

The institute is working on developing enhancements to the lecturer portal to allow electronic management of training issues such as attendance and student progress�

The institute enabled selected students to enrol online or electronically for the first time in Semester 1, 2011�

The institute is working towards introducing the student portal which will give students online access to a range of resources including GSLive, a Microsoft product that utilises cloud technology to give students an email address, 40GB of file storage and free access to Microsoft software�

Records Management

The institute has upgraded its electronic record keeping system to Trim Context which will enable it to electronically manage records as they enter or leave the institute�

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Student Services Directorate

Role and Function

The Student Services Directorate is responsible for:

• Aboriginal program delivery

• Institute communications

• Regional campus administration

• Student and customer services�

Functions of the directorate encompass:

• Management of the Disability Access and Inclusion Plan

• Management of the Duty of Care for Minors Policy

• Management of Katanyiny Noongar Moort Aboriginal training strategy

• Coordination of Institute and community events including the awards night and careers expo

• Negotiating articulation agreements between the Institute and universities

• Marketing of the Institute’s qualifications and programs

• Provision of advice to Corporate Executive on economic trends and policies impacting on delivery of VET in the Great Southern region�

Main Achievements

Promotion of institute activities has been enhanced through the monthly production of the Great Southern Gazette (an ‘e-zine’)�

The institute has been piloting the development of a publications website using new ‘flipping book’ technology� In 2010 all course brochures were converted to this easy-to-read electronic format� Increasing access to institute publications by providing them in an electronic format will reduce publishing costs, ensure the currency of publications is maintained, and improve regional access to information�

The Disability Action and Inclusion Plan Implementation Plan has been updated to reflect institute priorities for 2010-2011� Better TAFE Facilities funding was used to improve access for people with disabilities and funds were used for car parking, signage, tactile ground surface indicators and automatic doors�

The institute continues to work collaboratively with community agencies to support the inclusion of people with disabilities including the ‘Around the Garden’ project with the Rainbow Coast Neighbourhood Centre�

The institute was the 2010 State winner in the education and training section of the Disability Service Commission’s ‘Count Me In’ awards�

Key community events delivered in 2010 included the institute Awards Night and the Careers Expo� The expo was well attended with 850 students attending from 10 government and non-government schools�

The Great Southern Institute of Technology continued to develop articulation agreements with universities� The institute also formalised arrangements with several universities to

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ensure VETiS students undertaking a combined WACE Certificate IV pathway in Year 11 and12 would meet minimum entry requirements for undergraduate degrees�

These agreements encourage students to consider VET qualifications as a pathway to higher-level qualifications, and contribute to institute strategies that align to the recommendations of the Bradley Review into Higher Education�

This directorate is responsible for the management and administration of the institute’s three regional campuses, and delivery at other regional centres including the Community Resource Centres� In 2010 a purpose-built demountable was purchased for the Denmark campus� This additional building will relieve the pressure on existing classrooms and provide additional office space�

In 2010 the Great Southern Institute continued to work in partnership with the Aboriginal community, schools and other service providers to secure employment outcomes for Aboriginal students enrolled with the institute�

The institute delivered a highly successful Aboriginal School Based Traineeship in partnership with SkillHire Group Training� The program was based around an experiential career planning program (TryTech) which exposed Year 10 students to hands-on projects across the full gamut of trade areas offered by the institute�

Key Challenges

The restructure of the institute in 2010 resulted in the creation of a new directorate of Student Services� This directorate assumed responsibility for functions that were previously managed by the directorates of Research and Planning, and Performance and Review�

A series of workshops were conducted, facilitated both internally and externally, to support staff in the process of change management, and the directorate enters 2011 with a clear focus on the delivery of services to enhance student experience at the institute�

The Year Ahead

In 2010 the directorate will focus on improving the delivery of information to current and future students� Strategies to achieve this will include:

• Improving career planning strategies through the use of individual pathway plans for young people

• Completing the process of converting paper based documents into an ‘e-book’ format

• Providing facilities in the customer service areas of the Institute to improve access to information�

The directorate will continue to develop and support programs delivering outcomes for Aboriginal people, and in particular focus on delivering mentor and tutoring support to improve student outcomes in mainstream VET qualifications�

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Training Services Directorate

Role and Function

The Training Services directorate is responsible for the delivery and outcomes of the six training portfolios of the institute, the Library Resource Centre and the support of academic excellence through three principal lecturers�

Functions of the directorate encompass:

• Quality assurance and continuous improvement of delivery and student outcomes

• Monitoring and adjusting the institute profile

• Allocating extensive resources to the currency of qualifications and higher qualifications for lecturing staff to ensure academic excellence for the institute

• Supporting online inititatives and the development of learning resources through the Academic Board�

Main Achievements

The directorate achieved 100% of the planned profile through managed relationships with industry, employers and the regional community�

The directorate worked to support the strategic intent of Training WA, the institute’s Strategic Plan, and the Workforce Development Plan�

An inaugural three-day Professional and Career Development event was held in 2010 to support administrative and academic staff in meeting the objectives embodied in these plans� A comprehensive program supported the innovation and new ministerial directions underpinning the rebadging of the institute�

Under the banner of ‘Invention/Reinvention’, more than 200 staff participated over three days of professional and personal development, building the institute community and refocussing activity and skills to meet new challenges�

Following the restructure in June 2010, the Principal Lecturer focus was reviewed to ensure pedagogical knowledge, mentoring and academic excellence supported the delivery effort�

The Year Ahead

Training for students will continue to be provided in flexible methodologies – in particular online – and students will access resources and course work via institute-wide platforms such as Moodle�

To support the move to electronic media, a considerable part of the professional and career development budget of this directorate is designated for the upskilling and familiarisation of our academic staff required to support the new technologies and approach�

The specific institute goals for 2011 are to increase the use of electronic modes to replace paper usage and to encourage and support academic staff to achieve higher qualifications� Seventeen lecturers have enrolled for 2011 with Charles Sturt University�

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Business and Creative Industries

Role and function

To provide training for individuals and workforce development in the following areas:

• Accounting

• Administration

• Business

• Information Technology

• Media

• Design

• Management

• Occupational Health and Safety

• Project Management�

Key Challenges

Sourcing and developing resources and finding suitably skilled staff have been major challenges, particularly moving forward to the delivery of public sector and local government qualifications�

In order to meet community and industry needs it has been necessary to restructure regional delivery classes, and training delivery by contractors has been reviewed to focus on achievement of completions�

Main Achievements

Management training with the Forest Products Commission was completed, with approximately 70 individuals receiving training or qualifications as a result of assessments carried out throughout 2010�

As part of the portfolio’s commitment to develop and maintain partnerships with other agencies, it has also delivered training to the City of Albany, the Water Corporation and the Health Department�

Preparations were carried out for the E-Finance Learning Community project which started in February 2011, under which external students will move to a supported online training environment�

Auspicing with the region’s high schools was implemented, with Certificate I in Business, Certificate II in Business and Certificate II in Creative Industries delivered at regional high schools�

Skills development of institute staff was augmented by the production of e-learning tools and adaptation of resources in an online format�

Delivery of 100 per cent SCH was achieved in the following areas:

• Financial Services – Albany

• Business – Albany

• Business – External

• Media – Albany

• Prison delivery�

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The Year Ahead

Expanding delivery into new areas, growing the RPL market, increasing delivery in management training and growing the online market in a move away from external delivery will be priorities in 2011�

Staff will be recruited to support delivery in Finance, Management and Government�

To improve retention, participation and outcomes in training for young people, a trial intake of 12 students will be used to develop the model for a school-based traineeship for government agencies� Also, auspicing will be expanded to include more high schools throughout the regions�

Course areas with extended online components for 2011 will be:

Communication and The Arts

Role and function

Following an organisational restructure, a new portfolio was created� Great Southern Institute of Technology’s Communication and The Arts portfolio offers a variety of courses for students at all levels� Experienced lecturers, excellent facilities and modern resources ensure a contemporary, supportive training environment�

Courses provide a platform for opportunities in the following areas:

• Music

• Art

• Arts Administration

• Language, Literacy and Numeracy programs

• Languages

• Work Education

• Training and Assessment

• Access and participation courses

• Vocational Education and Training in Schools

• External Studies

• Prison Delivery�

Key Challenges

Finding experienced staff – particularly in the areas of Training and Assessment and English as a Second Language at regional centres – has been an ongoing challenge during the year�

The portfolio has a large number of staff who do not hold the Certificate IV in Training and Assessment (or equivalent), which puts pressure on current staff involved in direct supervision� A targeted strategy is being developed at the institute to upgrade the skills of all lecturers to achieve this qualification�

The portfolio’s recent creation has brought other challenges, including the identifying of demographics in order to correctly target advertising and marketing, and the sourcing and developing of resources�

• Media

• IT

• Finance

• Business

• Local Government

• Government

• Project Management

• Occupational Health and Safety�

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With the relocation of the Environment and Primary Industries portfolio to a new purpose-built facility, Communication and The Arts moved into the space it vacated�

Main Achievements

The sixth annual Lower Great Southern Noongar Art Exhibition at Kendenup Lodge ran for four weeks in July and August� Mount Barker Visual Arts students contributed to the exhibition, which is a major event on the students’ art calendar� Students from regional art classes and the Mount Barker Aboriginal and Torres Strait Islander art classes exhibited their work�

A resource CD for Certificate in Spoken and Written English students was developed� Speakers recount in the past simple tense stories that focus on the interest of students, such as their workplace needs, personal interests and real life experiences� It was created for students to listen to in their own time to bolster their learning�

The Year Ahead

A major art exhibition will be held in November 2011, showcasing students’ painting, sculpture, ceramics, photography, digital media and music�

External students will have access to Training and Education (TAE) as an online product, and external studies will be disseminated to the delivery portfolios�

In Mount Barker, a photography program for Aboriginal people will be launched with funding from a Country Arts Network WA grant for $10,000�

The Language, Literacy and Numeracy program which has been very successful in Albany will be delivered in Katanning�

An Underpinning Skills for Industry Qualifications (USIQ) program will be implemented, and a series of brochures and ‘lunchbox’ training sessions for staff organised to facilitate this�

To increase prison delivery, the portfolio will strengthen partnership arrangements with the Department of Corrective Services�

The portfolio aims to develop Arts Administration as online delivery and decrease the number of staff requiring supervision�

The Environment and Primary Industries

Role and Function

To provide training for individuals and workforce development in the following areas:• Agriculture

• Forestry

• Conservation and Land Management

• Horticulture

• Organic Horticulture

• Aquaculture

• Viticulture

• Winemaking

• Shearing

• Shedhanding

• Wool Classing

• Wool Handling

• Tourism�

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Key Challenges

Regional expansion of the wool harvesting area proved to be the key challenge for the section given the current agricultural economic climate� This is expected to also be a major challenge in 2011�

Development of course delivery at our major regional campuses of Katanning and Denmark proved to be a high-level challenge given the low populations�

Resource management across all campuses has been a significant challenge this year�

Main Achievements

The section achieved its whole-of-year profile target figures, which included a high number of RPL applications successfully actioned� The bulk of the applications were in the forestry and conservation and land management study areas�

The May addendum saw the section apply for an additional 150,000 student curriculum hours from the department�

The section operated with three business MOUs in place, all of which resulted in producing additional profile and tender student curriculum hours� These MOUs were with the Forest Products Commission, the Forest Training Centre and the Southern Aboriginal Corporation, the last two of which were new for 2010 and will flow into the 2011 academic year�

A tender with ForestWorks to formalise qualifications through RPL has resulted in 49 workers being signed up – the MOU with the Forest Training Centre works towards achieving this aim� This tender is funded by the Federal Government’s Productivity Places program�

TendersThe section was granted two tenders from the Department of Training and Workforce Development for the delivery of shearing and shedhand training throughout Western Australia� This equated to an additional 28,000 student curriculum hours�

For the professional coaching of shearers and woolhandlers in the industry, the section was awarded an Australian Wool Innovation (AWI) tender�

A CoastCare tender was implemented to restore the four-wheel drive track at Dunsky’s Beach in the West Cape Howe National Park�

To deliver RPL qualifications to 20 dairy workers in the State’s south-west, the section signed a tender with Western Dairy� This will flow through into 2011�

A tender was also signed between Western Dairy and the section to formalise qualifications through RPL to 20 existing workers in the dairy industry in the south-west� This tender will go into the 2011 academic year and is aimed at formally qualifying workers in the Certificate III to Diploma level� At the end of the year, 10 workers had been assessed�

And finally, two Competitive Allocation Tendering (CAT) tenders were awarded to the section to be delivered at Pardellup Prison� These tenders are of a wool harvesting nature and will integrate with the prison farm’s shearing operations�

New businessThe institute signed an Alliance Charter with the National Centre for Dairy Education

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Australia (NCDEA) through Dairy Australia� This alliance makes the institute the preferred provider for dairy education and training in Western Australia�

To date this agreement has given us profile, traineeship and short course student contact hours� The NCDEA has provided our staff with professional development and resources in order to meet the needs of this industry�

New profile courses on offer through the section in 2010 included Laboratory Skills and Events Management� The section has had strong enquiries from potential customers for 2011 delivery�

Capital Works Anson RoadAt the end of 2010, the section moved into its new facility in Anson Road, thereby joining the horticulture and conservation and land management sections� This has ended the split campus operation of the section as the Mercer Road annexe is also being made redundant� This has resulted in a very well designed teaching and learning facility�

The Year Ahead

Settling in to the purpose-built facility will be a priority for staff in the early part of 2011�

Ongoing work with the Forest Products Commission will largely hinge on the wellbeing of that organisation�

New business will be developed in the industry areas of waste management and animal care and there will be further exploration of the dairy industry (delivery of short commercial courses)�

Higher-level courses across all current and future study areas will also be developed�

The section will host Integrated Tree Cropping (ITC) and key industry stakeholder meetings for the Great Southern focus area�

Online delivery across the wool harvesting and horticultural/land management areas will be expanded, and further development work on industry workplace assessment, including Recognition of Prior Learning, will be carried out across all study areas�

Health Sciences and Community Services

Role and Function

To provide training for individuals and workforce development in the following areas:

• Children’s Services

• Education Support

• Community Services

• Dental

• Nursing

• Allied Health

• Massage�

Key Challenges

A deregulated training market, especially in online training, created a challenge in a ‘thin’ market�

However, employment-based training has increased in this portfolio�

Provision of school-based traineeships and other programs for school students within

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the timelines and rigidity of the Department of Education’s grid timetables has been a challenge�

Main Achievements

With the reopening of the Ravensthorpe mine and the consequent need for child care services, Certificates (Certificate III and above) in Children’s Services were delivered�

Certificate IV in Leisure and Health was developed to attract workers in the aged care industry, and staff worked with the GSEDC To develop an application for Certificate III level school-based traineeships for the health and community services industries�

A program was set up linking Great Southern Institute of Technology’s Diploma of Community Services Work to Edith Cowan University’s Bachelor of Social Work� This will enable the institute’s diploma students to enrol in an ECU Bachelor of Social Work program simultaneously� Students gain support in their transition to university and receive one year full-time equivalent credit towards a social work degree� This may raise the numbers in the diploma course as there are few employment opportunities for those with only a diploma but high demand for those with a degree�

In the nursing section, a Westone project was completed successfully and three units are now available in an online mode�

The institute organised and hosted a nursing industry reference group to share results of a 2009 industry survey�

Project days were organised with Aboriginal students of North Albany Senior High School in the Strong Young Women program�

Recognition of Prior Learning was offered from Certificate IV in Enrolled Nursing to the Diploma in Enrolled Nursing�

Certificates III and IV in Education Support and Certificate III to Advanced Diploma of Child Care were delivered, and included skills gap training�

The delivery of Certificate III in Child Protection was also established�

The Year Ahead

As a standard component of face-to-face delivery, most rooms will be provided with the resources to use online and/or animated resources� Electronic media will be used for support materials� Students with insufficient Internet access will be able to access the internet from the Library Resource Centre and have resources made available on on USB drives�

Programs previously offered under a paper-based External Studies delivery mode will now be available under flexible delivery mode with materials provided on USB drives� Students will have the option of printing materials or accessing them in electronic format� Electronic submission of assignments and greater access to lecturers will enhance delivery�

As a consequence of meeting with industry,the nursing section will deliver units of competency specifically related to medications� “Medication Competency” is a requirement of the Nurses’ Board�

Certificate III in Aged Care and Certificate III in Allied Health Assistance will be offered in Katanning with some generic units being offered concurrently�

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In the Children’s Services and Education Support sectors, lecturers will be providing workshops and face-to-face support for high level students in the regional towns and centres and delivery of Community Services qualifications will be supported by face-to-face workshops as far afield as Esperance�

Trades and Allied Industries

Role and Function

The main role of this portfolio is to provide training that supports on-the-job delivery for trainees and apprentices�

In 2010, the Trades portfolio again delivered a mix of both profile and tender products�

The makeup of students is from Year 10 in ‘have-a-go’ programs such as Try Tech through to Diploma of Builders Registration�

The Apprenticeship Support Unit also forms part of the trades portfolio, although this section has a whole-of-institute support function� An Industry Training Consultant was appointed to this position to support the timely management of apprenticeship contracts and respond to changes in Section 7 of the VET Act 1996�

The portfolio provides training for individuals and workforce development in the following

areas:Key Challenges

Sourcing and developing resources and finding suitably qualified staff in boom conditions have been major challenges�

Maintaining current industry facilities, skills and equipment is a continual challenge for the portfolio�

Main Achievements

This year the Trades portfolio has delivered seven tenders, both delivery based and product development based� The portfolio has also delivered more than 100 per cent of its profile allocation and remained on budget for the year�

TendersDelivery based:

• Industrial skills – NEET (Automotive)

• Automotive – NEET

• Try Tech Aboriginal Youth Trade Training Katanning and Albany incorporating Try a

• Cabinetmaking

• Carpentry and Joinery

• Metal Fabrication

• Plumbing and Gasfitting

• Automotive

• Civil Construction

• Electrotechnology

• Residential Drafting

• Clothing and Textiles

• Beauty Therapy and Hairdressing

• Hospitality�

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Trade funded by Construction Industry Training Fund (CITF)

• Certificate I in Hospitality – Disabilities access, winner of Disability Services Commission Award for Education and Training�

Development based:

• Flexible delivery framework innovation tender – Hairdressing together with Regional based tender for online resource development� This involved Hairdressing Lecturer Jodi Remaj and technical adviser Rod Connell

• Westone resource development tender, for two units for Diploma of Builders Registration� This involved Carpentry and Joinery Lecturer Brad Eastough�

AwardsTwo plumbing apprentices from this institute won first and third place in the State Plumbing Registration Board competition� Both apprentices are employed by Active Plumbing in Albany�

The Certificate I in Hospitality course for students with a disability was a winner of the Disability Services Commission Count Me In Award in the Education and Training division� The success of this program can be attributed to Disability Liaison Officer Wendy Macliver, Hospitality Lecturer Andrea Gallagher and Alison Teede, proprietor of the Vancouver Café in Albany�

The year Ahead

Maintenance projects planned for 2011 include refurbishment of the hospitality lecturers’ office and technicians’ area, painting of the trades office and beauty therapy room, repair of water damage in the trades office and levelling the floor in the metals area�

In the restaurant, refurbishment to enable the Skills Development Centre to use it for course delivery, and soundproofing to comply with occupational safety and health requirements�

In 2011, two new delivery tenders have been won for this portfolio – barista training at both Albany and Denmark campuses, and Certificate I in Hospitality for people with disabilities, which is supported by CAVVS�

The Kickstart Pre-apprenticeship School Apprenticeship Link, Certificate II program will be delivered in the industry areas of Construction and Automotive� The program is in conjunction with the Apprenticeship and Traineeship Company (ATC) who will oversee the work placement component of this program� There are 34 students currently enrolled in this program, which will be delivered over three semesters�

Skills Development Centre

Role and Function

The Skills Development Centre delivers an extensive range of short courses to individuals, government and corporate sectors� Courses can be customised to meet specific needs or chosen from the existing product range�

In addition to these skills development programs, the Centre provides lifestyle course, consultancy services, workforce development options and international student recruitment and support services�

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Key Challenges

The main challenges faced in 2010 included:

• Increasing competitiveness for skilled staff, particularly Worksafe assessors, as the mining and construction industries enter a new period of development

• Remaining competitive with the private training sector for large contracts, in the context of public sector HR and IR restrictions

• Retaining skilled staff�

Main Achievements

The Skills Development Centre continued to operate effectively in the competitive fee-for-service market in 2010, with contracts for the delivery of training throughout Western Australia�

With its continued focus on the delivery of high-risk licence training, the Centre is well positioned to reap the benefits of the next mining boom, the effects of which are already starting to be felt�

It also successfully engaged in the competitive tendering environment in 2010, being awarded contracts for the delivery of training and development projects in the vicinity of $1�8 million�

Our international student market was buoyant with full-time students spread across a range of disciplines including horticulture, community services, accounting, hospitality and nursing� Students come from Brazil, the UK, China, Malaysia and Africa�

The full-time student group was complemented by study tour groups who visited the region to further their skills in agriculture and forestry�

The Skills Development Centre continues to operate as the institute’s commercial arm, in addition to assisting the academic areas to engage in workforce development and innovation projects�

The main achievements for 2010 are:

• Fee-for-service training targets for 2010 were exceeded as the Skills Development Centre continued to increase business at a local, statewide and international level� Growth has again been boosted by the development of new products and a continuing emphasis on high-quality training for the corporate sector�

• The institute attracted 26 full-time international students to study at the Albany campus� Students were drawn from many countries including Brazil, England, China, Malaysia and Africa, studying in a variety of disciplines� The institute also continued its engagement in study tour programs, hosting forestry students from Vietnam�

• The Skills Development Centre continued to work with regional TrainingWA public sector institutes in the Kimberley, Pilbara, Goldfields and South-West regions to provide high-risk and OSH training� Programs were delivered under partnership arrangements in Kununurra, Karratha, Bunbury, Kalgoorlie and Esperance�

• Being awarded competitively tendered contracts in the vicinity of $1�8 million for 2010/11 delivery�

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The Year Ahead

The year ahead will bring both challenges and opportunities�

Opportunities will include:

• New market development in the Ravensthorpe region� With the commissioning of Galaxy Resources and First Quantum Minerals mining operations, there are increased opportunities to develop high risk licensing and OSH markets closer to home

• Increased market share in areas that have growth potential such as earthmoving training

• Higher-quality communication systems (web page, database, Facebook) will enable us to reach wider audiences more effectively – freeing up staff to work on new market development�

Challenges include:

• Re-building international markets in the face of a 30 per cent anticipated decrease in full-time statewide onshore student demand in 2011� Strategies to develop alternative markets are already in train

• Meeting the anticipated demands of the next mining boom�

Library Resource Centre

Role and Function

The Library Resource Centre provides services, resources and facilities to support the education and professional development programs at Great Southern Institute of Technology�

The library fosters a culture of life-long learning by providing students with the opportunity to develop skills they can take with them into the future� This includes exposure to new technologies and ways of accessing and using information, both physical and digital�

Main Achievements

The main achievements for the year included the provision of resources in a range of formats to support educational and professional development programs offered�

Support services were provided to a broad range of students and staff, and classes to expand information-finding skills and online and digitally based learning were held throughout the year� Evening opening hours were also extended�

Online research databases such as EBSCOHost and ProQuest were promoted for course delivery�

An iTrolley of 15 laptop computers for classroom use and 10 netbook computers were provided and wireless Internet access was installed�

Key Challenges

Digital literacy and the ability to use information and communications technology is one of the key challenges facing students and staff throughout the institute�

The level of technological change in the library and information industry is very high�

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This is demonstrated in the automation of services, adoption of Internet connectivity for staff and students, the growth in use of digital technologies and the production of online resources and software in preference to traditional formats�

Staff TrainingIn order for the Library Resource Centre to continue to support the information and education needs of the institute community, it is essential staff continue to develop relevant and current IT skills� Staff must remain current with copyright compliance and resources, facilities and services to support the educational needs of a diverse clientele�

The Year Ahead

Identification of, and access, to the most current online resources is essential� A revamp of the library web page will facilitate this�

Extensive promotion campaigns will ensure all staff and students are aware of the online resources available and how to access and use them, and of the support provided by library staff�

The most current audio-visual and digital equipment will be provided to enable course delivery using pedagogically current methodologies such as smart board, graphics tablet and Moodle�

Staff will be trained to provide and maintain all automated services, identify and use online information databases and support students and staff in the use of databases and software, as well as the broad range of digital equipment in the library�

This will necessitate deployment of sufficient numbers of staff and reclassification of the position of Library Technician to reflect the changing skill level� Uncertainty about the impact of the economic recovery in the short, medium and long term requires the institute to be agile and responsive�

Significant Issues Affecting the AgencyIt should be noted that the rapidity of changes over the past 24 months has created an environment in which it is not possible to be certain about industry demand for provision of skills�

Future complicating factors include the impact of the proposed resources tax and likely impact on small/medium resource companies; introduction of an ETS and/or carbon tax and the impact on activity in the natural resource management sector; unexpected drought conditions in the upper Great Southern leading to a downturn in business activity, etc�

Economic indicators and labour market data for the region suggest that unemployment levels have stabilised, but that there is unlikely to be a sudden turnaround in the economic environment�

The institute will continue to monitor regional economic performance through engagement in key community and economic forums, and through its network of industry reference groups�

Re-opening of the nickel operation at Ravensthorpe in late 2010; development of the Lithium mine near Ravensthorpe; and construction associated with the magnetite mine at Southdown will ‘suck’ skilled labour from enterprises unable to match the wages and conditions in the resource sector and generate demand for skills training to backfill positions�

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The residential housing sector is a major provider of apprentice training, and a resource-led economic recovery will no doubt continue the pattern of apprentices completing their training and then moving out of the region� The institute will be working with industry to develop training strategies to mitigate against the impact this will have on productivity�

The consolidation of the timber industry as a result of restructuring of companies that went into receivership/liquidation is anticipated to generate demand for skilled harvester operators as well as sub-contractors who will need a range of OSH and Worksafe tickets�

Current and future contributors to an increase in demand for tourism and hospitality training include establishment of Albany as a cruise ship destination, completion of the Munda Biddi long-distance bike path� Return to economic growth in WA will also lead to an increase in domestic tourism visits to the region�

Demographic factors (the ageing of the population and the low socio-economic status of many regional families) are expected to drive regional demand for training associated with occupations in the service industries and in sectors such as health, community services, and education�

In the current economic environment young people need to be given every opportunity at school to begin developing vocational skills to provide a future career path� The institute has made substantial investments in school career development programs in partnership with the ATC (explain) Group Training Organisation and Local Community Partnership and these will continue as a priority in 2011�

Construction of School Trade Training Centres across the region will require planning for increased delivery of VET to school students, particularly if there is sustained growth in the resources/construction sector�

The competitive labour market highlights the need to increase participation rates – Indigenous participation rates continue to lag behind those of the non-Indigenous labour force� A priority in 2011 will be the continuing development of strategies to increase participation�

The institute has developed an Aboriginal Training Strategy (Kadadjiny Noongar Moort) to ensure that training promoted to the regional Aboriginal labour force is aligned to the priorities of the WA Government’s ‘Training WA’ strategy� This plan will capture the impacts of the economic downturn on the labour force and provide the base data necessary to implement training programs that align the Aboriginal labour force to opportunities in the labour market�

Strategies will continue to be developed that have as their outcome the engagement of Aboriginal school students in structured VET qualification pathways, and in particular delivering units of competence that highlight the role of literacy and numeracy in VET�

Industry has identified that more needs to be done to attract women into the traditional trades and the institute will continue to work with schools and employers to ensure that the current gender bias is addressed through career planning strategies such as TryTech�

The Bradley Review is expected to lead to substantial changes in the way in which higher education is accessed and delivered� The 40:20 targets, combined with low SES in this region, are anticipated to lead to stronger partnerships between the institute and universities and generate growth in demand for higher-level VET qualifications across a number of occupations in the para-professions�

The Australian Industry Group has recently highlighted that low levels of workplace literacy

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and numeracy are affecting productivity� As the qualification profile of Great Southern residents indicates that the region has a disproportionate number of people who have not completed Year 12 or a Certificate III VET qualification, it is likely that workplaces in the region are being affected by these low levels of literacy and numeracy� This is anticipated to generate an increased demand for the delivery of literacy/numeracy training in the workplace�

The planned construction of a new Mount Barker Campus as part of the Mount Barker ‘One Community One College’ concept has set as a priority a requirement for the institute to broaden the delivery profile in this significant local government area�

Managing the institute’s workforce will continue to be a strategic priority� An unforeseen workforce benefit of the global financial crisis was that many older workers have delayed their retirement plans until their superannuation investments recover�

A return to a more stable investment environment will lead to the institute losing skilled lecturers – particularly lecturers delivering in areas of skills shortage�

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Section 4 Disclosures and Legal Compliance

Auditor General

Page 1 of 2

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

INDEPENDENT AUDITOR’S REPORT

To the Parliament of Western Australia

GREAT SOUTHERN INSTITUTE OF TECHNOLOGY

Report on the Financial Statements I have audited the accounts and financial statements of the Great Southern Institute of Technology.

The financial statements comprise the Statement of Financial Position as at 31 December 2010, the Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and Notes comprising a summary of significant accounting policies and other explanatory information.

Governing Council’s Responsibility for the Financial Statements The Governing Council is responsible for keeping proper accounts, and the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards and the Treasurer’s Instructions, and for such internal control as the Governing Council determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility As required by the Auditor General Act 2006, my responsibility is to express an opinion on the financial statements based on my audit. The audit was conducted in accordance with Australian Auditing Standards. Those Standards require compliance with relevant ethical requirements relating to audit engagements and that the audit be planned and performed to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Institute’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the Governing Council, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.

OpinionIn my opinion, the financial statements are based on proper accounts and present fairly, in all material respects, the financial position of the Great Southern Institute of Technology at 31 December 2010 and its financial performance and cash flows for the year then ended. They are in accordance with Australian Accounting Standards and the Treasurer’s Instructions.

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Great Southern Institute of Technology

Report on Controls I have audited the controls exercised by the Great Southern Institute of Technology. The Governing Council is responsible for ensuring that adequate control is maintained over the receipt, expenditure and investment of money, the acquisition and disposal of public and other property, and the incurring of liabilities in accordance with the Financial Management Act 2006 and the Treasurer’s Instructions, and other relevant written law.

As required by the Auditor General Act 2006, my responsibility is to express an opinion on the controls exercised by the Governing Council based on my audit conducted in accordance with Australian Auditing Standards.

OpinionIn my opinion, the controls exercised by the Great Southern Institute of Technology are sufficiently adequate to provide reasonable assurance that the receipt, expenditure and investment of money, the acquisition and disposal of property, and the incurring of liabilities have been in accordance with legislative provisions.

Report on the Key Performance Indicators I have audited the key performance indicators of the Great Southern Institute of Technology. The Governing Council is responsible for the preparation and fair presentation of the key performance indicators in accordance with the Financial Management Act 2006 and the Treasurer’s Instructions.

As required by the Auditor General Act 2006, my responsibility is to express an opinion on the key performance indicators based on my audit conducted in accordance with Australian Auditing Standards.

OpinionIn my opinion, the key performance indicators of the Great Southern Institute of Technology are relevant and appropriate to assist users to assess the Institute’s performance and fairly represent indicated performance for the year ended 31 December 2010.

IndependenceIn conducting this audit, I have complied with the independence requirements of the Auditor General Act 2006 and the Australian Auditing Standards, and other relevant ethical requirements.

COLIN MURPHY AUDITOR GENERAL 15 March 2011

Page 2 of 2

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Section 3Financial Statements

STATEMENT OF COMPREHENSIVE INCOME 2010 2009FOR THE YEAR ENDED 31 DECEMBER 2010

Notes $ $COST OF SERVICESExpensesEmployee benefits expense 7 15,033,292 13,609,206 Supplies and services 8 6,064,862 4,805,024 Depreciation and amortisation expense 9 731,452 758,627 Grants and subsidies 10 16,766 8,058 Cost of sales 15 308,572 396,992 Loss on disposal of non-current assets 19 - 19,672 Other expenses 11 1,046,677 949,600 Total cost of services 23,201,621 20,547,179

IncomeRevenueFee for service 12 1,688,176 1,408,897 Student fees and charges 13 1,407,265 1,454,105 Ancillary trading 14 153,992 255,057 Sales 15 558,129 547,149 Commonwealth grants and contributions 16 362,398 2,511,419 Interest revenue 17 370,966 250,121 Other revenue 18 356,194 196,951 Total revenue 4,897,120 6,623,699

GainsGain on disposal of non-current assets 19 5,375 - Total gains 5,375 -

Total income other than income from State Government 4,902,495 6,623,699

NET COST OF SERVICES (18,299,125) (13,923,480)

INCOME FROM STATE GOVERNMENT 20Service appropriation 18,288,671 15,348,136 Resources received free of charge 254,456 658,515 Total income from State Government 18,543,127 16,006,651

244,001 2,083,171

OTHER COMPREHENSIVE INCOMEChanges in asset revaluation surplus (1,424,347) (1,709,938) Gains/(losses) recognised directly in equity - - Total other comprehensive income (1,424,347) (1,709,938)

TOTAL COMPREHENSIVE INCOME/(DEFICIT) FOR THE PERIOD (1,180,346) 373,233

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

Great Southern Institute of Technology

SURPLUS/(DEFICIT) FOR THE PERIOD

Statutory Financial Statements 2010 FINAL 14/03/2011 1:08 PM

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Great Southern Institute of TechnologySTATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER 2010 2010 2009

Notes $ $ASSETSCurrent Assets Cash and cash equivalents 21 5,913,047 5,000,822 Restricted cash and cash equivalents 31,36 826,969 2,345,557 Inventories 22 52,912 51,800 Receivables 23 562,124 393,705 Other current assets 24 62,204 55,286 Total Current Assets 7,417,255 7,847,170

Non-Current Assets Property, plant and equipment 25 25,076,364 25,236,229 Restricted cash and cash equivalents 21 - 192,000 Total Non-Current Assets 25,076,364 25,428,229

TOTAL ASSETS 32,493,620 33,275,399

LIABILITIESCurrent LiabilitiesPayables 27 696,809 545,803 Provisions 28 1,907,865 1,618,540 Other current liabilities 29 57,827 99,515

Total Current Liabilities 2,662,502 2,263,858

Non-Current LiabilitiesProvisions 28 644,905 659,593 Total Non-Current Liabilities 644,905 659,593

TOTAL LIABILITIES 3,307,407 2,923,451

NET ASSETS 29,186,212 30,351,948

EQUITYContributed equity 30 2,524,017 2,509,407 Reserves 8,651,441 10,075,788 Accumulated surplus/(deficit) 18,010,754 17,766,753

TOTAL EQUITY 29,186,212 30,351,948

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


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Great Southern Institute of TechnologySTATEMENT OF CHANGES IN EQUITY Accumulated

FOR THE YEAR ENDED 31 DECEMBER 2010Contributed

Equity Reserves Surplus / (Deficit) Total EquityNotes $ $ $ $

Balance at 1 January 2009 30 2,509,407 11,785,726 15,683,582 29,978,715

Changes in accounting policy or correction of prior period errors - - - -

Restated balance at 1 January 2009 2,509,407 11,785,726 15,683,582 29,978,715

Total comprehensive income for the year - (1,709,938) 2,083,171 373,233

Transaction with owners in their capacity as ownersCapital appropriations - - - - Other contribution by owners - - - - Distribution to owners - - - - Total - - - -

Balance at 31 December 2009 2,509,407 10,075,788 17,766,753 30,351,948

Balance at 1 January 2010 2,509,407 10,075,788 17,766,753 30,351,948

Total comprehensive income for the year - (1,424,347) 244,001 (1,180,346)

Transaction with owners in their capacity as ownersCapital appropriations 14,610 - - 14,610 Other contribution by owners - - - - Distribution to owners - - - - Total 14,610 - - 14,610

Balance at 31 December 2010 2,524,017 8,651,441 18,010,754 29,186,212

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

Statement of Changes in Equity 2010 FINAL 14/03/2011 1:06 PM

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Great Southern Institute of TechnologySTATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2010 2010 2009

Notes $ $CASH FLOWS FROM STATE GOVERNMENTService appropriation - Department of Training and Workforce Development 17,074,304 14,268,405 Capital appropriation - Department of Training and Workforce DevelopmentRoyalties for Regions FundNet cash provided by State Government 17,074,304 14,268,405

Utilised as follows:CASH FLOWS FROM OPERATING ACTIVITIESPaymentsEmployee benefits (13,450,957) (12,099,054) Supplies and services (5,759,647) (4,121,310) Grants and subsidies (16,766) (8,058) GST payments on purchases (798,799) (494,806) Cost of good sold (308,572) (396,992) Other payments (1,025,671) (948,348)

- Receipts - Fee for service 1,630,496 1,394,861 Student fees and charges 1,417,020 1,415,729 Ancillary trading 153,992 255,057 Commonwealth grants and contributions 274,692 2,511,419 Interest received 323,366 382,683 GST receipts on sales 176,133 223,018 GST receipts from taxation authority 622,666 271,788 Sale of goods 557,017 545,776 Other receipts 308,313 178,471 Net cash provided by/(used in) operating activities 31 (15,896,717) (10,889,766)

CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sale of non-current physical assets 11,000 112,418 Purchase of non-current physical assets (1,986,950) (839,790) Net cash provided by/(used in) investing activities (1,975,950) (727,372)

Net increase/(decrease) in cash and cash equivalents (798,363) 2,651,267

Cash and cash equivalents at begining of period 7,538,379 4,887,112

CASH AND CASH EQUIVALENTS AT END OF PERIOD 31 6,740,016 7,538,379

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


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GREAT SOUTHERN INSTITUTE OF TECHNOLOGYNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010

1 Australian equivalents to International Financial Reporting Standards

(a) General The College's financial statements for the year ended 31 December 2010 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 College has adopted any applicable, new and revised Australian Accounting Standards from their operative dates.

(b) Early adoption of standardsThe College cannot early adopt an Australian Accounting Standard unless specifically permitted by Treasurer's Instruction (TI) 1101 'Application ofAustralian Accounting Standards and Other Pronouncements'. No Australian Accounting Standards that have been issued or amended but are not yet effective have been early adopted by the College for the annual reporting period ended 31 December 2010.

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

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

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

(b) Basis of preparationThe financial statements have been prepared on the accrual basis of accounting using the historical cost convention, except for 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 ($).

The judgements that have been made in the process of applying the College’s accounting policies that have the most significant effect on the amounts recognised in the financial statements are disclosed at note 4 ‘Judgements made by management in applying accounting policies’.

The 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, are disclosed at note 5 ‘Key sources of estimation uncertainty’.

(c) Reporting entityThe reporting entity comprises the College and entities listed at note 39 ‘Related bodies’.

(d) Contributed equityAASB Interpretation 1038 ‘Contributions by Owners Made to Wholly-Owned Public Sector Entities’ requires transfers, in the nature of equity contribution other than as a result of 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 are designated as contributions by owners per TI 955 'Contributions by Owners Made to Wholly Owned Public Sector Entities' and have been credited directly to Contributed Equity.

The transfer of net assets to/from other agencies, other than as a result of a restructure of administrative arrangements, are designated as contributions by/distributions to owners to where the transfers are non-discretionary and non-reciprocal. See note 30 'Equity'.

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

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

Notes to the Financial Statements 2010 FINAL 14/03/2011 1:10 PM

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

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

InterestRevenue is recognised as the interest accrues. The effective interest method which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset, is used where applicable.

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

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

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

Service appropriations Service Appropriations are recognised as revenues at nominal value in the period in which the College gains control of the appropriated funds. The College gains control of appropriated funds at the time those funds are deposited to the bank account or credited to the ‘Amounts receivable for services’(holding account) held at Treasury.

State fundsThe 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 forunder competitive tendering arrangements. This revenue is recognised at nominal value in the period in which the College meets the terms of the Agreement. See note 20 'Income from State Government'.

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

(f) Property, plant and equipment and infrastructureCapitalisation/Expensing of assetsItems 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 netework 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 thanwhere they form part of a group of similar items which are significant in total).

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

Subsequent measurement Subsequent to initial recognition as an asset, the revaluation model is used for the measurement of land, buildings and infrastructure and the cost model for all other property, plant and equipment. Land and buildings are carried at fair value less accumulated depreciation on buildings 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 byreference to recent market transactions. When buildings are revalued by reference to recent market transactions, the accumulated depreciationis eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount.

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


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Independent valuations of land and buildings are provided 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 determiningestimated useful life. Professional judgement by the valuer is required where the evidence does not provide a clear distinction between market type assetsand existing use assets. Refer to note 25 'Property, plant and equipment' for further information on revaluations.

DerecognitionUpon disposal or derecognition of an item of property and plant and equipment , any revaluation surplus relating to that asset is retained in the asset revaluation surplus.

Asset revaluation surplusThe asset revaluation surplus is used to record increments and decrements on the revaluation of non-current assets as described in note 25 ‘Property, plantand equipment’.

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

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 to70 yearsMotor vehicles, caravans and trailers 4 to 15 yearsPlant, furniture and general equipment 5 to 15 yearsComputing, communications and software (a) 4 to 15 years

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

Land is not depreciated.

(g) Impairment of assetsProperty, plant and equipment,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 College is a not-for-profit entity, unless an asset has been identifiedas a surplus asset, the recoverable amount is the higher of an asset’s fair value less costs to sell and depreciated replacement cost.

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

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

Intangible assets 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 referenceto market-based evidence. Where fair value is determined by reference to depreciated replacement cost, surplus assets are at risk of impairment and the recoverable amount is measured. Surplus assets at cost are tested for indications of impairment at the end of each reporting period.

See note 26 ‘Impairment of assets’ for the outcome of impairment reviews and testing. See note 2(m) 'Receivables' and note 23 'Receivables' for impairment of receivables.

(h) Leases

The College has entered into operating lease arrangements for printing and photcopying services and five property leases through out Great Southern region for the delivery of training. For the photocopying and printing services lease the payments are expensed on a rate per copy and property leasesare expensed on a straight line basis over the lease term as this represents the pattern of benefits derived from the leased properties.

(i) Financial instrumentsIn addition to cash and bank overdraft, the College has two categories of financial instruments:

• Loans and receivables; and• Financial liabilities measured at amortised cost.

Financial Instruments have been disaggregated into the following classes:

Financial assets• cash and cash equivalents • restricted cash and cash equivalents• receivables• amounts receivable for services• term deposits

Financial liabilities• payables• borrowings

Initial recognition and measurement of financial instruments is at fair value. Usually the transaction cost or face value is equivalent to fair value and subsequentmeasurement 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


45


measurement is not required as the effect of discounting is not material.



Independent valuations of land and buildings are provided 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 determiningestimated useful life. Professional judgement by the valuer is required where the evidence does not provide a clear distinction between market type assetsand existing use assets. Refer to note 25 'Property, plant and equipment' for further information on revaluations.

DerecognitionUpon disposal or derecognition of an item of property and plant and equipment , any revaluation surplus relating to that asset is retained in the asset revaluation surplus.

Asset revaluation surplusThe asset revaluation surplus is used to record increments and decrements on the revaluation of non-current assets as described in note 25 ‘Property, plantand equipment’.

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

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 to70 yearsMotor vehicles, caravans and trailers 4 to 15 yearsPlant, furniture and general equipment 5 to 15 yearsComputing, communications and software (a) 4 to 15 years

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

Land is not depreciated.

(g) Impairment of assetsProperty, plant and equipment,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 College is a not-for-profit entity, unless an asset has been identifiedas a surplus asset, the recoverable amount is the higher of an asset’s fair value less costs to sell and depreciated replacement cost.

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

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

Intangible assets 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 referenceto market-based evidence. Where fair value is determined by reference to depreciated replacement cost, surplus assets are at risk of impairment and the recoverable amount is measured. Surplus assets at cost are tested for indications of impairment at the end of each reporting period.

See note 26 ‘Impairment of assets’ for the outcome of impairment reviews and testing. See note 2(m) 'Receivables' and note 23 'Receivables' for impairment of receivables.

(h) Leases

The College has entered into operating lease arrangements for printing and photcopying services and five property leases through out Great Southern region for the delivery of training. For the photocopying and printing services lease the payments are expensed on a rate per copy and property leasesare expensed on a straight line basis over the lease term as this represents the pattern of benefits derived from the leased properties.

(i) Financial instrumentsIn addition to cash and bank overdraft, the College has two categories of financial instruments:

• Loans and receivables; and• Financial liabilities measured at amortised cost.

Financial Instruments have been disaggregated into the following classes:

Financial assets• cash and cash equivalents • restricted cash and cash equivalents• receivables• amounts receivable for services• term deposits

Financial liabilities• payables• borrowings

Initial recognition and measurement of financial instruments is at fair value. Usually the transaction cost or face value is equivalent to fair value and subsequentmeasurement 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






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

(k) Accrued salariesThe Specific capital equipment & minor works account (see note 21 'Restricted cash and cash equivalents') consists of amounts held in Restricted cash and cash equivalents account over a period of ten financial years to largely meet the additional cash outlay in each eleventh year when 27 pay days occur instead of the normal 26.No interest is received on this account.

Accrued salaries (see note 27 'Payables') represent the amount due to staff but unpaid at the end of the financial year, as the end of the last pay period for that financial year does not coincide with the end of the financial year. Accrued salaries are settled within a fortnight of the financial year end. The College considers the carrying amount of accrued salaries to be equivalent to its net fair value.

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

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

See note 22 'Inventories'.

(m) ReceivablesReceivables are recognised and carried at original invoice amount less an allowance for any uncollectible amounts (impairment). The collectability of receivables is reviewed on an ongoing basis and any receivables identified as uncollectible are written off against the allowance account. The provision for uncollectible amounts (doubtful debts) is raised when there is objective evidence that the College will not be able to collect the debts. The carrying amount is equivalent to fair value as it is due for settlement within 30 days. See note 2(i) ‘Financial instruments’ and note 23 ‘Receivables’.

A provision for impairment of receivables can only be raised if there is objective evidence of impairment.

(n) PayablesPayables are recognised at the amounts payable when the College becomes obliged to make future payments as a result of a purchase of assets or services. The carrying amount is equivalent to fair value, as they are generally settled within 30 days. See note 2(i) ‘Financial instruments’ and note 27'Payables'.

(o) ProvisionsProvisions are liabilities of uncertain timing and/or amount and are recognised where there is a present legal, equitable or constructive obligation as a resultof a past event and when the outflow of resources embodying economic benefits is probable and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at the end of each reporting period. See note 28 ‘Provisions’.

(i) Provisions - employee benefitsAll annual leave and long service leave provisions are in respect of employees’ services up to the end of the reporting period.

Annual leaveThe liability for annual leave expected to be settled within twelve months after the reporting period is recognised and measured atthe undiscounted amounts expected to be paid when the liability is settled.

Annual leave not expected to be settled within 12 months after 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 College does not have an unconditional right to the defer settlement of the liability for at least 12 months after the reporting period.

Long service leaveA liability for long service leave is recognised after an employee has completed four years of service based on remuneration rates current as at the end of the reporting period. An actuarial assessment of long service leave undertaken by Price Waterhouse Coopers Actuaries at 31December 2010 determined that the liability measured using the short hand measurement technique above was not materially different from the liability determined using thepresent value of expected future payments. This calculation is consistent with the College's experience of employee retention and leave taken.

Unconditional long service leave provisions are classified as current liabilities as the College does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Conditional long service leave provisions are classified as non-current liabilities because the College has an unconditional right to defer the settlement of the liability until the employee has completed the requisite years of service.


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Notes to the Financial Statements 2010 DRAFT3 24/02/2011 12:49 PM


Superannuation The Government Employees Superannuation Board (GESB) in accordance with legislative requirements administers public sector superannuation arrangements in WA.

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 College has no liabilities for superannuation charges under those schemes, as the liabilities for the unfunded Pension Scheme and the unfundedGSS transfer benefits due 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 College to the GESB. The concurrently funded part of the GSS is a defined contributionscheme as these contributions extinguish all liabilities in respect of the concurrently funded GSS obligations.

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

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(p) 'Superannuation expense'.

(ii) Provisions - otherEmployment on-costs Employment on-costs, including workers’ compensation insurance, are not employee benefits and are recognised separately as expenses and liabilities when the employment, to which they relate, has occurred. Employment on-costs are included as part of 'Other expenses' and are not included as part of the College's 'Employee benefits expense’. The related liability is included in 'Employment on-costs provision'. (See note 11 'Other expenses' and note 28'Provisions'.)

(p) Superannuation expenseThe 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).

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 agency purposes because the concurrent contributions (defined contributions) made by the College to GESB extinguish all of the College's obligations to the related superannuation liability.

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

Where assets or services are received from another State Government agency, these are separately disclosed under Income from State Government in the Statement of Comprehensive Income .

(r) Comparative figuresComparative 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

No other policies have been included in these Statutory Accounts

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 College evaluates these judgements regularly.

No significant judgements have been made that would materially alter the current financial results of the College.



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

(k) Accrued salariesThe Specific capital equipment & minor works account (see note 21 'Restricted cash and cash equivalents') consists of amounts held in Restricted cash and cash equivalents account over a period of ten financial years to largely meet the additional cash outlay in each eleventh year when 27 pay days occur instead of the normal 26.No interest is received on this account.

Accrued salaries (see note 27 'Payables') represent the amount due to staff but unpaid at the end of the financial year, as the end of the last pay period for that financial year does not coincide with the end of the financial year. Accrued salaries are settled within a fortnight of the financial year end. The College considers the carrying amount of accrued salaries to be equivalent to its net fair value.

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

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

See note 22 'Inventories'.

(m) ReceivablesReceivables are recognised and carried at original invoice amount less an allowance for any uncollectible amounts (impairment). The collectability of receivables is reviewed on an ongoing basis and any receivables identified as uncollectible are written off against the allowance account. The provision for uncollectible amounts (doubtful debts) is raised when there is objective evidence that the College will not be able to collect the debts. The carrying amount is equivalent to fair value as it is due for settlement within 30 days. See note 2(i) ‘Financial instruments’ and note 23 ‘Receivables’.

A provision for impairment of receivables can only be raised if there is objective evidence of impairment.

(n) PayablesPayables are recognised at the amounts payable when the College becomes obliged to make future payments as a result of a purchase of assets or services. The carrying amount is equivalent to fair value, as they are generally settled within 30 days. See note 2(i) ‘Financial instruments’ and note 27'Payables'.

(o) ProvisionsProvisions are liabilities of uncertain timing and/or amount and are recognised where there is a present legal, equitable or constructive obligation as a resultof a past event and when the outflow of resources embodying economic benefits is probable and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at the end of each reporting period. See note 28 ‘Provisions’.

(i) Provisions - employee benefitsAll annual leave and long service leave provisions are in respect of employees’ services up to the end of the reporting period.

Annual leaveThe liability for annual leave expected to be settled within twelve months after the reporting period is recognised and measured atthe undiscounted amounts expected to be paid when the liability is settled.

Annual leave not expected to be settled within 12 months after 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 College does not have an unconditional right to the defer settlement of the liability for at least 12 months after the reporting period.

Long service leaveA liability for long service leave is recognised after an employee has completed four years of service based on remuneration rates current as at the end of the reporting period. An actuarial assessment of long service leave undertaken by Price Waterhouse Coopers Actuaries at 31December 2010 determined that the liability measured using the short hand measurement technique above was not materially different from the liability determined using thepresent value of expected future payments. This calculation is consistent with the College's experience of employee retention and leave taken.

Unconditional long service leave provisions are classified as current liabilities as the College does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Conditional long service leave provisions are classified as non-current liabilities because the College has an unconditional right to defer the settlement of the liability until the employee has completed the requisite years of service.


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Notes to the Financial Statements 2010 DRAFT3 24/02/2011 12:49 PM






































5 Key sources of estimation uncertainty

The College makes key estimates and assumptions concerning the future. These estimates and assumptions 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.

Student receivables under 60 days due are considered collectable and a provision is made for the full value for those receivables which are doubtful.

General receivables from other government agencies are considered risk free, no provision, and all others are by individual assessment with a provision to the full value if required.

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

The College has a policy of valuing land and buildings annually. The revaluations of the College's land and buildings is undertaken by Western Australian Land Information Authority (Valuation Services). Every year estimates of useful life of plant and equipment are provided to give guidance on depreciaton rates used in intervening years.

No provision has been made for sick leave as the College's annual costs do not exceed the annual value of entitlements.

6 Disclosure of changes in accounting policy and estimates

Initial application of an Australian Accounting StandardThe College has applied the following Australian Accounting Standards effective for annual reporting periods beginning on or after 1 January 2010 that impacted on the College.

AASB 2008-13 - Amendments to Australian Accounting Standards arising from AASB Interpretation 17 – Distributions of Non-cash Assets to Owners [AASB 5 & AASB 110].This Standard amends AASB 5 Non-current Assets Held for Sale and Discontinued Operations in respect of the classification, presentation and measurement of non-current assets held for distribution to owners in their capacity as owners. This may impact on the presentation and classification of Crown land held by the College where the Crown land is to be sold by the Department of Regional Development and Lands (formerly Department for Planning and Infrastructure). There is no financial impact resulting from the Standard being first applied prospectively.

Voluntary changes in accounting policy

There were no changes in accounting policy.

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

Title

AASB 2009-11 - Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 1/01/2013 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 and Interpretations 10 & 12]. The amendment to AASB 7 'Financial Instruments: Disclosures ' requires modification to the disclosure of categories of financial assets. The College does not expect any financial impact when the Standard is first applied. The disclosure of categories of financial assets in the notes will change.

Operative for reporting periods


48


AASB 1053 - Application of Tiers of Australian Accounting Standards. This Standard establishes a differential financial 1/07/2013reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements.The Standard does not have any financial impact on the College. However it may affect disclosures in the financial statementsof the College if the reduced disclosure requirements apply. DTF has not yet determined the application or the potentialimpact of the new Standard for agencies.

AASB 2010-2 - Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements 1/07/2013This 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 College. However this Standard may reduce some note disclosures in the financial statements of the College. DTF has not yet determined the application or the potential impactof the amendments to these Standards for agencies.

Changes in Accounting Estimates

There have been no changes in accounting estimates.
















Title


















Title


















Title





AASB 1053 - Application of Tiers of Australian Accounting Standards. This Standard establishes a differential financial 1/07/2013reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements.The Standard does not have any financial impact on the College. However it may affect disclosures in the financial statementsof the College if the reduced disclosure requirements apply. DTF has not yet determined the application or the potentialimpact of the new Standard for agencies.

AASB 2010-2 - Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements 1/07/2013This 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 College. However this Standard may reduce some note disclosures in the financial statements of the College. DTF has not yet determined the application or the potential impactof the amendments to these Standards for agencies.

Changes in Accounting Estimates

There have been no changes in accounting estimates.


49

Great Southern Institute of TechnologyNOTES TO THE FINANCIAL STATEMENTS 10GLACT 09GLACTFOR THE YEAR ENDED 31 DECEMBER 2010

2010 2009$ $

7 Employee benefits expenseWages and salaries (a) 13,818,926 12,529,476 Superannuation - defined contribution plans (b) 1,214,366 1,079,730

15,033,292 13,609,206

(a) Includes the value of the fringe benefit to the employee plus the fringe benefits tax component, leave entitlements including superannuation contribution component and redundancy payments.(b) Defined contribution plans include West State, and Gold State and GESB Super Scheme (contributions paid).

Employment on-costs such as workers' compensation insurance are included at note 11 'Other expenses'. The employment on-costsliability is included at note 28 'Provisions'.

8 Supplies and servicesConsumables and minor equipment 1,085,198 907,589 Communication expenses 119,134 128,161 Utilities expenses 341,090 296,559 Consultancies and contracted services 1,917,689 1,958,593 Minor works 1,574,488 689,453 Repairs and maintenance 107,996 88,368 Operating lease and hire charges 278,856 209,290 Travel and passenger transport 275,779 258,001 Advertising and public relations 141,861 100,554 Supplies and services - other 222,771 168,456

6,064,862 4,805,024

9 Depreciation and amortisation expense

DepreciationBuildings 494,975 555,640 Motor vehicles, caravans and trailers 54,290 43,769 Plant, furniture and general equipment 110,677 110,105 Computers and communication network 71,509 49,113 Total depreciation 731,451 758,627

10 Grants and subsidiesRecurrentAdult and community education organisationsPayments to non-TAFE providers for VET service delivery - 109 Other 16,766 7,949

16,766 8,058

11 Other expensesBuilding maintenance 183,726 179,098 Doubtful debts expense 3,247 (2,412) Employment on-costs (a) 822,131 751,438 Donations 2,191 1,812 Student prizes and awards 17,623 16,001 Losses and write-offs (b) 17,759 3,663

1,046,677 949,600 (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 28 'Provisions'. Superannuation contributions accrued as part of the provision for leave are employee benefits and are not included in employment on-costs.(b) Losses and write -offs are disclosed at note 41 Supplementary financial information

12 Fee for serviceFee for service - general 873,873 547,233 Fee for service - Department of Training and Workforce Development 465,483 619,250 Fee for service - Government (other than Department of Training and Workforce Development) 105,850 97,569 International division fees 224,650 133,879 Fee for service - other 18,320 10,966

1,688,176 1,408,897

13 Student fees and chargesTuition fees 799,161 868,161 Resource fees 387,110 358,216 Other college fees 220,994 227,728

1,407,265 1,454,105

14 Ancillary tradingLive works (not a trading activity) 104,870 157,457 Contracting and consulting 6,934 72,165 Other ancillary revenue 42,188 25,435

153,992 255,057


50


2010 2009$ $

15 Trading profit/(loss)

(a) Bookshop: Sales 177,755 168,795 Cost of sales: - Opening inventory (46,419) (44,122) Purchases (132,193) (211,446)

(178,612) (255,569) Closing inventory 46,983 46,419

Cost of goods sold (a) (131,629) (209,150) Trading profit/(loss) - Bookshop 46,126 (40,355)

(b) Cafeteria (non-training related)Sales 376,038 365,326

Cost of sales:Opening inventory (5,381) (6,304) Purchases (177,491) (186,919)

(182,872) (193,223) Closing inventory 5,929 5,381

Cost of goods sold (b) (176,943) (187,842)

Trading profit/(loss) - Cafeteria 199,095 177,484

(c) Other tradingSales 4,335 13,028 Cost of sales:Opening inventory - - Purchases - -

- - Closing inventory

Cost of goods sold (b) - -

Trading profit/(loss) - Other trading 4,335 13,028

249,557 150,157 See note 2(l) 'Inventories' and note 22'Inventories'.

(a) 2010 - $ 123,307 internal transfers of College stationery; of this amount $91,247 was expensed directly to stationery and not included in cost of goods sold2009 - $104,275 internal stationery transfers included in cost of goods sold

(b) 2010 - $ 16,637 internal transfers for College cateringexpensed directly to catering and not included in cost of goods sold2009 - $19,955 internal catering transfers included in cost of goods sold

16 Commonwealth grants and contributionsCommonwealth specific purpose grants and contributions (a) 262,398 611,419 Commonwealth capital grants and contributions (b) 100,000 1,900,000

362,398 2,511,419 (a) Commonwealth recurrent grantsCommonwealth specific purpose grant (ANTA)Commonwealth specific purpose grant ( non ANTA)(b) Better TAFE Facilities grant

17 Interest revenueInterest revenue (a) 370,966 250,121

(a) SourcesCash at BankTerm Deposits

18 Other revenueRental and facilities fees 30,788 27,411 Other direct grants and subsidy revenue (a) 200,993 59,443 Sponsorship and donations revenue 25,043 23,629 Miscellaneous revenue 99,370 86,468

356,194 196,951

(a) - Department of Environment and Conservation $150,000 - Albany District Education Office $50,993


51


2010 2009$ $

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

Costs of disposal of non-current assetsLandBuildingsMotor vehicles, caravans and trailers - (132,090) Plant, furniture and general equipment (5,625) - Computers and communication network - - Total cost of disposal of non-current assets (5,625) (132,090)

Proceeds from disposal of non-current assetsLand - - Buildings - - Motor vehicles, caravans and trailers - 112,368 Plant, furniture and general equipment 11,000 - Computers and communication network - 50 Total proceeds from disposal of non-current assets 11,000 112,418

Net gain/(loss) 5,375 (19,672)

20 Income from State Government

Appropriation received during the year

Delivery and Performance Agreement (DPA) 16,999,139 14,079,832 Superannuation (b) 1,214,366 1,079,730 Other recurrent funds 75,166 188,574 Total State funds 18,288,671 15,348,136

Resources received free of charge determined on the basis of the following estimates provided by agencies (c):Department of Training and Workforce Development- Corporate systems support 246,932 571,466

- Marketing and publications - 14,361 - Human resources, and industrial relations support 7,524 55,646 - Other - 17,042 Total resources received free of charge 254,456 658,515

Total income from State Government 18,543,127 16,006,651

(a) Service appropriations are accrual amounts reflecting the net cost of services delivered. The 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) In 2008, the reporting of the notional superannuation expense and equivalent notional income has been discontinued. Where the Treasurer or other entity has assumed a liability, the College recognises revenues equivalent to the amount of the liability assumed and an expense relating to the nature of the event or events that initially gave rise to the liability.

(c) Where assets or services have been received free of charge or for nominal cost, the College recognises revenues equivalent to the fair value of the assets and/or the fair value of those services that can be reliably measured and which would have been purchased if they were not donated, and those fair values shall be recognised as assets or expenses, as applicable. Where the contribution of assets or services are in the nature of contributions by owners, the College makes an adjustment direct to equity.

21 Restricted cash and cash equivalents

CurrentSpecific capital equipment and minor works (a),(b), ( c),(d) 565,084 2,345,557 27th Pay (e) 251,349 -

Specific Donations (f), (g) 10,536 - 826,969 2,345,557

Non-current 27th Pay - 192,000

- 192,000 Total restricted cash and cash equivalents 826,969 2,537,557

(a) DET Auto Workshop - $250,537

(b) Environmental Protection Authority - $150,000 (Refer note 33 )

( c) Primary Industries Stage 2 (Project 10794)- $162,697

(d) University of Western Australia - Nursing travel fund $1,850

(e) Amount held for the purpose of meeting the 27th pay that occurs every 11 years in 2016 - $251,349

(f) Mick Young Trust - $1,036(g) Denmark Music Foundation - $9,500

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


52


2010 2009$ $

22 Inventories

Inventories held for resale:Bookshop (at cost) 46,983 46,419 Cafeteria (at cost) 5,929 5,381

Total 52,912 51,800

See also not 2(l) 'Inventories' and note 15 'Trading profit/(loss)'.

23 Receivables

CurrentReceivables - trade 171,376 204,223 Receivables - students 3,286 2,871 Accrued income 294,191 124,215 Allowance for impairment of receivables (3,722) (475) GST receivable 96,993 62,871 Total current 562,124 393,705

Reconciliation of changes in the allowance for impairment of receivables:Balance at start of year (475) (2,887) Doubtful debts expense recognised in the Statement of Comprehensive Income (3,247) 2,412 Balance at end of year (3,722) (475)

Credit Risk

In respect of amounts receivable, the College holds no collateral as security or other credit enhancements.

Ageing of receivables past due but not impaired based on the information provided to senior management,as at the end of the reporting period:Not more than 3 months 75,469 42,342 More than 3 months but less than 6 months 12,115 3,791 More than 6 months but less than 1 year - 745

87,584 46,878

Receivables individually determined as impaired as at the end of the reporting period:Carrying amount, before deducting any impairment loss 174,662 207,095 Impairment loss (3,722) (475)

170,940 206,620

See also note 2(m) 'Receivables' and note 36 'Financial instruments'.

24 Other assets

CurrentPrepayments 62,204 55,286 Total current 62,204 55,286

25 Property, plant and equipment

LandAt fair value (a) 2,720,000 3,630,000 Accumulated impairment losses - -

2,720,000 3,630,000 BuildingsAt fair value (a) 20,493,371 19,793,637 Accumulated depreciation - -

20,493,371 19,793,637 Buildings under constructionConstruction costs 790,821 748,242

790,821 748,242

Motor vehicles, caravans and trailers At cost 566,547 566,547 Accumulated depreciation (244,265) (189,974)

322,282 376,573 Plant, furniture and general equipmentAt cost 1,303,309 1,223,606 Accumulated depreciation (803,202) (708,458)

500,107 515,148 Computer equipment, communication networkAt cost 887,157 781,831 Accumulated depreciation (637,374) (609,202)

249,783 172,629

25,076,364 25,236,229


53


2010 2009$ $

(a) Freehold land and buildings were revalued as at 31 December, 2010, by the Western Australian Land Information Authority(Valuation Services). The valuations were performed during the year ended 31 December, 2010 and recognised at 31 December, 2010. The fair value of all land and buildings was determined by reference to market values. See note 2(f) 'Property, plant and equipment'.

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

2010 Land BuildingsBuildings under

construction

Motor vehicles, caravans and

trailers

Plant, furniture and general equipment

Computer equipment,

communication network Total

Carrying amount at start of year 3,630,000 19,793,637 748,242 376,573 515,148 172,629 25,236,229 Additions - 1,709,057 - - 101,223 148,662 1,958,942 Transfers - - 42,580 - - - 42,580 Disposals - - - - (5,588) - (5,588) Revaluation increments (910,000) (514,347) - - - - (1,424,347) Depreciation expense - (494,976) - (54,291) (110,676) (71,508) (731,451) Carrying amount at end of year 2,720,000 20,493,371 790,822 322,282 500,107 249,783 25,076,364

2009 Land BuildingsBuildings under

construction

Motor vehicles, caravans and

trailers

Plant, furniture and general equipment

Computer equipment,

communication network Total

Carrying amount at start of year 3,455,000 22,219,726 181,200 428,439 499,471 213,256 26,997,092 Additions - 14,489 - 123,993 125,782 8,486 272,750 Transfers - - 567,042 - - - 567,042 Disposals - - - (132,090) - - (132,090) Revaluation increments 175,000 (1,884,938) - - - - (1,709,938) Depreciation expense - (555,640) - (43,769) (110,105) (49,113) (758,627) Carrying amount at end of year 3,630,000 19,793,637 748,242 376,573 515,148 172,629 25,236,229

26 Impairment of assetsThere were no indications of impairment of property plant, equipment and intangibles as at 31 December 2010.

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

All surplus assets as at 31 December 2010 have either been classified as assets held for sale or written off.

27 Payables

Current Trade payables 3,302 3,464 GST payable 12,940 13,898 Accrued expenses 358,543 299,748 Accrued salaries and related costs 322,024 228,693 Total current 696,809 545,803

See also note 2(n) 'Payables' and note 36 'Financial Instruments'.

28 Provisions

CurrentEmployee benefits provision Annual leave (a) 727,621 692,412 Long service leave (b) 1,010,708 778,331

1,738,329 1,470,743 Other provisions Employment on-costs (c) 169,536 147,797

169,536 147,797 Total current 1,907,865 1,618,540

Non-currentEmployee benefits provision Long service leave (b) 606,430 622,238

606,430 622,238 Other provisions Employment on-costs (c) 38,475 37,355

38,475 37,355 Total non-current 644,905 659,593

(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 reporting period. Assessments indicate that actual settlement of the liabilitieswill occur as follow:Within 12 months of the end of the reporting period 727,621 692,412

727,621 692,412

(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:Within 12 months of the end of the reporting period 755,735 778,331 More than 12 months after the end of the reporting period 861,403 622,238

1,617,138 1,400,569


54


2010 2009$ $

(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. Theassociated expense, apart from the unwinding of the discount (finance cost), is disclosed in note 11 'Other expenses'.

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

Employment on-cost provisionCarrying amount at start of year 185,152 155,552 Additional provisions recognised 22,859 29,600 Carrying amount at end of year 208,011 185,152

29 Other liabilities

Current Income received in advance (a) 45,442 51,995 Grants and advances (b) - 46,608 Money/deposits held in trust (c) 12,386 912 Total current liabilities 57,828 99,515

(a) Income received in advance comprises:Student fees and charges 45,442 51,995

(b) Department of Education - competitive allocation tendering - 46,608 (c) Money/ deposits held in trust - University of Western Australia - Nursing travel fund $1,850 1,850 - - Mick Young Trust - $1,036 1,036 912 - Denmark Music Foundation - $9,500 9,500 -

57,828 99,515

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

Contributed equityBalance at start of year 2,509,407 2,509,407

Contributions by ownersCapital appropriation (a) 14,610 - Total contributions by owners 2,524,017 2,509,407

Balance at end of year 2,524,017 2,509,407

(a) Treasurer’s Instruction TI 955 ‘Contributions by Owners Made to Wholly Owned Public Sector Entities’ designates Capital Appropriations as contributions by owners in accordance with AASB Interpretation 1038 ‘Contributions by Owners Made to Wholly-Owned by Public Sector Entities.

ReservesAsset revaluation surplusBalance at start of year 10,075,788 11,785,726 Net revaluation increments/(decrements) - Land (910,000) 175,000 Buildings (514,347) (1,884,938) Balance at end of year 8,651,441 10,075,788

Accumulated surplus/(deficit) Balance at start of year 17,766,753 15,683,582 Result for the period 244,001 2,083,171 Balance at end of year 18,010,754 17,766,753

31 Notes to the Statement of Cash Flows

Reconciliation of cash

Cash on hand 7,240 7,340 Cash at bank 1,217,166 1,330,721 Short term deposits (a) 4,688,641 3,662,761

5,913,047 5,000,822 Restricted cash and cash equivalents (refer to note 21 'Restricted cash and cash equivalents') 826,969 2,537,557 Cash and cash equivalent at the end of period 6,740,016 7,538,379

(a) terms 30 to 365 days

the Statement of Financial Position as follows:Cash at the end of the financial year, as shown in the Statement of Cash Flows is reconciled to the related items in


55


2010 2009$ $

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

Net cost of services (18,299,125) (13,923,480)

Non-cash items:Depreciation and amortisation expense (note 9 ) 731,452 758,627 Doubtful debts expense (note 11) 3,247 (2,412) Superannuation expense (note 7) 1,214,366 1,079,730 Resources received free of charge (note 20) 254,456 658,515 Net (gain)/loss on sale of property, plant and equipment (5,375) 19,672 Losses and write-offs (excludes cash shortages / thefts of money) - (3,664)

(Increase)/decrease in assets:Current receivables (a) 32,433 (46,264) Current receiveables other (169,975) 80,320 Current inventories (1,112) (1,373) Prepayments (6,916) (7,251) Non-current Assets -

Increase/(decrease) in liabilitiesCurrent payables (a) (162) (837) Income received in advance /grants and advances (41,688) (6,928) Current provisions 289,325 289,463 Other current liabilities 152,127 134,295 Non-current Provisions (14,688) 80,646 Other non-current liabilities - -

Net GST receipts/(payments) (b) 84,053 48,972 Change in GST in receivables/payables (c) (119,135) (47,796)

Net cash provided by/(used in) operating activities (15,896,717) (10,889,765)

(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 as they are not reconciling items.(b) This is the net GST paid/received, i.e. cash transactions(c) This reverses out the GST in receivables and payables

32 Commitments

Capital expenditure commitments

Within 1 year 250,538 641,572 250,538 641,572

The capital commitments include amounts for:Buildings 250,538 641,572

Lease commitments

Within 1 year 194,537 157,921 Later than 1 year and not later than 5 years 83,487 207,013

278,024 364,934 Representing:Cancellable operating leases 48,801 48,519 Non-cancellable operating leases 229,223 316,415

278,024 364,934

Non-cancellable operating lease commitments

Within 1 year 171,960 135,625 Later than 1 year and not later than 5 years 57,263 180,789

229,223 316,414

Within 1 year 246,105 317,516 246,105 317,516

payable as follows:

Commitments for minimum lease payments are payable as follows:

Commitments in relation to leases contracted for at the end of the reporting period but not recognised in the

Capital expenditure commitments, being contracted capital expenditure additional to the amounts reported in thefinancial statements, are payable as follows:

financial statements, are payable as follows:

Other expenditure commitments contracted for at the end of the reporting period date but not recognised as liabilities are


56


33 Contingent liabilities and contingent assets

Contingent liabilities

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

The College reported the Katanning campus site to the Department of Environment and Conservation (DEC) as a potentially contaminated site due to its previous land use. The site was formerly used as a works depot and a service station. DEC have commissioned consultants to inspect and test the site. These consultants have completed a preliminary investigation of the site, but it will not be until the next stage of sampling and testing before it will be possible to determine any potential impacts. At this stage it remains not practicable to determine if there is a potential financial effect or to identify the uncetainties in relation to the amount or timing of any outflows.

In addition to the liabilities incorporated in the financial statements, there are the following contingent liabilities:


57


Contingent assets

34 Events occurring after the reporting period

No events occurred after statement of financial position date.

35 Explanatory statement

Significant variations between estimates and actual results for income and expense are shown below. Significantvariations are considered to be those greater than 10% or $20,000

Significant variations between estimated and actual results for 20102010 2010

Estimate Actual Variation VariationExpenditure $ $ $ %Employee expenses 14,481,397 15,033,292 (551,895) -3.81%Supplies and services 4,343,548 6,084,862 (1,741,314) -40.09%Depreciation 842,000 731,452 110,548 13.13%Grants and subsidies 60,000 16,766 43,234 72.06%Cost of sales 450,000 308,572 141,428 31.43%Other Expenses 840,000 1,046,677 (206,677) -24.60%(Gain) /Loss on disposal of non-current assets 30,000 (5,375) 35,375 117.92%

IncomeFee for service 1,400,000 1,688,176 (288,176) -20.58%Student fees and charges 1,350,000 1,407,265 (57,265) -4.24%Ancillary Trading 250,000 153,992 96,008 38.40%Sales 650,000 558,129 91,871 14.13%Commonwealth grants and contributions 970,000 362,398 607,602 62.64%Interest 160,000 370,966 (210,966) -131.85%Other revenue 200,000 356,194 (156,194) -78.10%

Income from State GovernmentState Funds 15,247,254 18,288,671 (3,041,417) -19.95%Resources received free of charge 700,000 254,456 445,544 63.65%

ExpenditureEmployee expensesIncrease in employee costs due to college achieving higher than estimated profile, increased superannuation and long service leave expense.Supplies and ServicesSignificant increase in delivery of student contact hours (SCH) resulting in expenditure increases over budget, in student materials, utilities costs, repairs and maintenance, travel and motor vehicles operating leasing. These increases were in part offset by reductions in communciation and contracted services. Minor capital works expenditure were greatly increased due to Better TAFE Facilities funding.DepreciationDecrease in actual building depreciation due to decrement of building valuations at 31/12/09 increase in computing equipment and increase in commerical vehicles.Grants & SubsidiesActual support grants less than budget.Cost of salesCost of sales were reduced as College stationery and catering costs were not included in cost of goods sold and were directly expensed to these expendiutre accounts.Other ExpensesIncreased expenditure due to increase in payroll tax, staffing on costs and write -offs, while workers compensation insurance was reduced.(Gain) /Loss on disposal of non - current assetsProfit on sale of plant and equipment.

IncomeFee for ServiceIncrease in actual fee for services over estimated budget. There was significant increase in customised course fees,and international student fees while reduction in competitive tender fees from the Department of Training.Student Fees and ChargesA slight increase in student fees and charges over budget. Increase in student resource fees and a reductionin student tuition fees and examination assessment fees.SalesBookshop and café sales were down on budget. Both bookshop and café slightly increased when compared with previous year.Ancillary TradingAncillary trading was below estimated budget. Reduction in liveworks and contracting and consulting revenue.Commonwealth grants and contributionsThere was significant reduction in Commonwealth recurrent grants and no capital grant funding.InterestInterest revenue greater than budget, due to higher interest rates.Other RevenueHigher than estimated revenue from State Government grants. Addition funding provided for study of possible contaminated site at Katanning.

Income from State GovernmentState fundsHigher than estimated delivery and performance revenue due to increase in profile, and a reduction in special purpose grants from the Department of Training and Education.Resources Received Free of ChargeDecrease in the services provided free of charge from Department of Training and Workforce Development than estimated.

The College has no contingent assets.


58


2010 2009 Variance Variation$ $ $ %

ExpenditureEmployee expenses 15,033,292 13,609,206 (1,424,086) -10.46%Supplies and services 6,064,862 4,805,024 (1,259,838) -26.22%Depreciation 731,452 758,627 27,175 3.58%Grants and subsidies 16,766 8,058 (8,708) -108.06%Cost of sales 308,572 396,992 88,420 22.27%Other expenses 1,046,677 949,600 (97,077) -10.22%(Gain) /Loss on disposal of non-current assets (5,375) 19,672 25,047 127.32%

- Income - Fee for service 1,688,176 1,408,897 (279,279) -19.82%Student fees and charges 1,407,265 1,454,105 46,840 3.22%Ancillary trading 153,992 255,057 101,065 39.62%Sales 558,129 547,149 (10,980) -2.01%Commonwealth grants and contributions 362,398 2,511,419 2,149,021 85.57%Interest 370,966 250,121 (120,845) -48.31%Other revenue 356,194 196,951 (159,243) -80.85%

Income from State GovernmentState funds 18,288,671 15,348,136 (2,940,535) -19.16%Resources received free of charge 254,456 658,515 404,059 61.36%

Employee expensesIncrease in employee costs due to college achieving higher than estimated profile, increased superannuation and long service leave expense.Supplies and ServicesSignificant increase in delivery of student contact hours (SCH) resulting in expenditure increases in student materials, utilities costs, repairs and maintenance, travel and motor vehicles operating leasing. These increases were in part offset by reductions in communciation and contracted services. Minor capital works expenditure were greatly increased due to Better TAFE Facilities funding.DepreciationDecrease in actual building depreciation due to decrement of building valuations at 31/12/09 and increase in computing equipment and a increase in commerical vehicles.

Grants and SubsidiesIncrease in non training service delivery payments.Cost of salesCost of sales were reduced as College stationery and catering costs were not included in cost of goods sold and were directly expensed to these expendiutre accounts.Other ExpensesIncreased expenditure due to increase in payroll tax, staffing on costs and write -offs, while workers compensation insurance was reduced.(Gain) /Loss on disposal of non - current assetsProfit on sale of plant and equipment compared with a loss on sale on disposal of motor vehicles in the previous year.

IncomeFee for ServiceIncrease in actual fee for services. There was significant increase in customised course fees,and international student fees while reduction in competitive tender fees from the Department of Training.Student Fees and ChargesReduction in student fees and charges due to more students eligible for concessions from fees.Ancilliary TradingReduction in liveworks and contracting and consulting revenue.SalesBoth bookshop and café slightly increased when compared with previous year.Commonwealth Grants and ContributionsThere was significant reduction in Commonwealth recurrent grants and no capital grant funding.InterestInterest revenue greater due to higher interest rates earned than the previous year.Other RevenueAddition funding provided by the Department of Environment and Conservation for study of possible contaminated site at Katanning.

Income from State Government

State fundsHigher delivery funding due to increase in profile completed, and a reduction in special purpose grants from the Department of Training and Education.Resources Received Free of ChargeDecrease in the services provided free of charge from Department of Training and Workforce Development.

36 Financial instruments

resulting in financial loss to the College.

is the gross carrying amount of those assets inclusive of any provisions for impairment as shown in the table at note 36(c) ‘Financial instruments disclosures’ and note 23 ‘Receivables’.

Significant variations between actual results for 2010 and 2009

(a) Financial risk management objectives and policiesFinancial instruments held by the College are cash and cash equivalents, restricted cash and cash equivalents,loans, finance leases, borrowings and receivables and payables. The College has limited exposure to financialrisks. The College's overall risk management program focus on managing the risk identified below:

Credit riskCredit risk arises when there is the possibility of the College’s receivables defaulting on their contractual obligations

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


59


Credit risk associated with the College’s financial assets is minimal because the main receivable is the amounts receivable for services (holding account). For receivables other than government, the College trades only with recognised, creditworthy third parties. The College 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 College's exposure to debt is minimal.There are no significant concentrations of credit risk.

Liquidity risk arises when the College is unable to meet its financial obligations as they fall due.

The College is exposed to liquidity risk through its trading in the normal course of business.

Market risk is the risk that changes in market prices such as foreign exchange rates and interest rates will affect the College's income or the value of its holdings of financial instruments.

The College's borrowings are all obtained through the Western Australian Treasury Corporation (WATC) and

(b) Categories of financial instrumentsIn addition to cash and bank overdraft, the carrying amounts of each of the following categories of financial assets and financial liabilities at the end of the reporting period are as follows: 2010 2009

$ $Financial AssetsCash and cash equivalent 5,913,047 5,000,822 Restricted cash and cash equivalent 826,969 2,537,557 Receivables (a) 465,130 330,835

Financial LiabilitiesPayables 696,809 545,803 (a) The amount of loans and receivables excludes GST recoverable from the ATO (statutory receivable).

(c) Financial instrument disclosuresCredit risk and interest rate exposuresThe following table discloses the College's maximum exposure to credit risk, interest rate exposure and the ageing analysis of financial assets. The College's maximum exposure to credit risk at the end of the reporting period is the carrying anmount of financial assets as shown below.The table discloses the ageing of financial asssetsthat are past due but not impaired and impaired financial assets. The table is based on information provided to senior management of the College.

The College does not hold any collateral as security or other credit enhancements relating to the financial assets it holds.

The College does not hold any financial assets that had to have their terms renegotiated that would have otherwise resulted in them being past due or impaired.

Interest rate exposureWeighted Average Effective

Interest Rate

Carrying Amount

Fixed Interest Rate

Variable Interest Rate

Non-Interest Bearing

Up to 3 months 3 to 12 months 1-2 Years

% $ $ $ $ $ $ $Financial Assets

- Cash and cash equivalent 3.90% 1,224,406 1,224,406 - Restricted cash and cash equivalent 3.90% 826,969 251,348 575,621 Restricted cash and cash equivalent 5.64% 4,688,642 4,688,642 - Receivables (a) 465,130 465,130 75,469 12,115 -

7,205,147 4,939,990 1,800,027 465,130 75,469 12,115 - -

Cash and cash equivalent 3.03% 1,338,061 1,338,061 - - - - Restricted cash and cash equivalent 5.16% 3,662,761 3,662,761 - - - Restricted cash and cash equivalent 5.16% 2,537,557 2,537,557 - - - - Receivables (a) 330,835 - 330,835 42,342 3,575 961

7,869,214 6,200,318 1,338,061 330,835 42,342 3,575 961

(a) The amount of receivables excludes the GST receivables from the ATO (statutory receivable).

Liquidity riskThe following table details the contractual maturity for fincancial liabilities. The contractual maturity amounts are representative of the undiscounted amounts as at the end of the reporting period. The table includes interest and principal cash flows. An adjustment has been made where material.

Liquidity risk

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

Market risk

The College does not trade in foreign currency and is not materially exposed to other price risks (for example, equity securities or commodity prices changes). The College's exposure to market risk for changes in interest rates relates primarily to the long-term debt obligations.

are at fixed rates with varying maturities. The risk is managed by WATC through portfolio diversification and variation in maturity dates. Other than as detailed in the Interest rate sensitivity analysis table at Note 36 ( c),the College is not exposed to interest rate risk because apart from minor amounts of restricted cash, all other cash and cash equivalents and a portion of restricted cash are non- interest bearing and it has no borrowings other than WATC borrowings and finance leases (fixed interest rate).

Interest rate exposure and ageing analysis of financial assetsPast due but not impaired



Credit risk associated with the College’s financial assets is minimal because the main receivable is the amounts receivable for services (holding account). For receivables other than government, the College trades only with recognised, creditworthy third parties. The College 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 College's exposure to debt is minimal.There are no significant concentrations of credit risk.

Liquidity risk arises when the College is unable to meet its financial obligations as they fall due.

The College is exposed to liquidity risk through its trading in the normal course of business.

Market risk is the risk that changes in market prices such as foreign exchange rates and interest rates will affect the College's income or the value of its holdings of financial instruments.

The College's borrowings are all obtained through the Western Australian Treasury Corporation (WATC) and

(b) Categories of financial instrumentsIn addition to cash and bank overdraft, the carrying amounts of each of the following categories of financial assets and financial liabilities at the end of the reporting period are as follows: 2010 2009

$ $Financial AssetsCash and cash equivalent 5,913,047 5,000,822 Restricted cash and cash equivalent 826,969 2,537,557 Receivables (a) 465,130 330,835

Financial LiabilitiesPayables 696,809 545,803 (a) The amount of loans and receivables excludes GST recoverable from the ATO (statutory receivable).

(c) Financial instrument disclosuresCredit risk and interest rate exposuresThe following table discloses the College's maximum exposure to credit risk, interest rate exposure and the ageing analysis of financial assets. The College's maximum exposure to credit risk at the end of the reporting period is the carrying anmount of financial assets as shown below.The table discloses the ageing of financial asssetsthat are past due but not impaired and impaired financial assets. The table is based on information provided to senior management of the College.

The College does not hold any collateral as security or other credit enhancements relating to the financial assets it holds.

The College does not hold any financial assets that had to have their terms renegotiated that would have otherwise resulted in them being past due or impaired.


Interest Rate

Carrying Amount

Fixed Interest Rate



Up to 3 months 3 to 12 months 1-2 Years

% $ $ $ $ $ $ $Financial Assets

- Cash and cash equivalent 3.90% 1,224,406 1,224,406 - Restricted cash and cash equivalent 3.90% 826,969 251,348 575,621 Restricted cash and cash equivalent 5.64% 4,688,642 4,688,642 - Receivables (a) 465,130 465,130 75,469 12,115 -

7,205,147 4,939,990 1,800,027 465,130 75,469 12,115 - -

Cash and cash equivalent 3.03% 1,338,061 1,338,061 - - - - Restricted cash and cash equivalent 5.16% 3,662,761 3,662,761 - - - Restricted cash and cash equivalent 5.16% 2,537,557 2,537,557 - - - - Receivables (a) 330,835 - 330,835 42,342 3,575 961

7,869,214 6,200,318 1,338,061 330,835 42,342 3,575 961



Liquidity risk

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

Market risk

The College does not trade in foreign currency and is not materially exposed to other price risks (for example, equity securities or commodity prices changes). The College's exposure to market risk for changes in interest rates relates primarily to the long-term debt obligations.

are at fixed rates with varying maturities. The risk is managed by WATC through portfolio diversification and variation in maturity dates. Other than as detailed in the Interest rate sensitivity analysis table at Note 36 ( c),the College is not exposed to interest rate risk because apart from minor amounts of restricted cash, all other cash and cash equivalents and a portion of restricted cash are non- interest bearing and it has no borrowings other than WATC borrowings and finance leases (fixed interest rate).





Interest Rate

Carrying Amount

Fixed Interest Rate



Up to 3 months 3 to 12 months 1-2 Years 2-5 years More than 5 years

Impaired Financial Assets

% $ $ $ $ $ $ $ $ $ $Financial Assets

- Cash and cash equivalent 3.90% 1,224,406 1,224,406 - - - - Restricted cash and cash equivalent 3.90% 826,969 251,348 575,621 - - Restricted cash and cash equivalent 5.64% 4,688,642 4,688,642 - - - - Receivables (a) 465,130 465,130 75,469 12,115 - - - 3,722

7,205,147 4,939,990 1,800,027 465,130 75,469 12,115 - - - 3,722 -

Cash and cash equivalent 3.03% 1,338,061 1,338,061 - - - - - - - Restricted cash and cash equivalent 5.16% 3,662,761 3,662,761 - - - - - - Restricted cash and cash equivalent 5.16% 2,537,557 2,537,557 - - - - - - - Receivables (a) 330,835 - 330,835 42,342 3,575 961 - - 475

7,869,214 6,200,318 1,338,061 330,835 42,342 3,575 961 - - 475



Maturity dateWeighted Average Effective

Interest Rate

Carrying Amount

Fixed Interest Rate



Adjustment for discounting

Total Nominal Amount


% $ $ $ $ $ $ $ $ $Financial Liabilities

- Payables 696,809 - - 696,809 - 696,809 696,809 - - - -

696,809 - - 696,809 - 696,809 696,809 - - - -

- Payables 545,803 - - 545,803 - 545,803 545,803 - - - -

545,803 - - 545,803 - 545,803 545,803 - - - -


Interest rate exposure and maturity analysis of financial liabilitiesInterest rate exposure


60


Weighted Average Effective

Interest Rate

Carrying Amount

Fixed Interest Rate





Up to 3 months

% $ $ $ $ $ $ $Financial Liabilities

- Payables 696,809 - - 696,809 - 696,809 696,809

696,809 - - 696,809 - 696,809 696,809

- Payables 545,803 - - 545,803 - 545,803 545,803

545,803 - - 545,803 - 545,803 545,803

Interest rate sensitivity analysis

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

Carrying amount Surplus Equity Surplus Equity

- $ $ $ $ $

Financial AssetsRestricted cash and cash equivalent 6,740,017 (67,400) (67,400) 67,400 67,400

Total Increase/(Decrease) 6,740,017 67,400- 67,400- 67,400 67,400


- $ $ $ $ $



Fair valuesAll 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.

37 Remuneration of members of the College and senior officers

$ $0 - $10,000 2010 2009

$170,001 - $180,000 1 1

$ $The total remuneration of the members of the College is: 187,850 177,435

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

Remuneration of senior officers

2010 2009$

$30,001 - $40,000 1 1 $40,001 - $50,000 - 1 $50,001 - $60,000 1 - $60,001 - $70,000 1 1 $70,001 - $80,000 1 1 $80,001 - $90,000 1 -

$100,001 - $110,000 - 3 $110,001 -$120,000 3 2 $120,000 -$130,000 2 2 $130,000 -$140,000 1 -

$ $1,047,040 1,024,781

The total remuneration of senior officers is: 11 11


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

- 100 Basis Points + 100 Basis Points

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


Remuneration of members of the CollegeThe number of members of the College whose total of fees, salaries, superannuation, non-monetary benefits and other benefits for the financial year, fall within the following bands are:



Weighted Average Effective

Interest Rate

Carrying Amount

Fixed Interest Rate





Up to 3 months

% $ $ $ $ $ $ $Financial Liabilities

- Payables 696,809 - - 696,809 - 696,809 696,809

696,809 - - 696,809 - 696,809 696,809

- Payables 545,803 - - 545,803 - 545,803 545,803

545,803 - - 545,803 - 545,803 545,803

Interest rate sensitivity analysis

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


- $ $ $ $ $




- $ $ $ $ $



Fair valuesAll 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.

37 Remuneration of members of the College and senior officers

$ $0 - $10,000 2010 2009

$170,001 - $180,000 1 1

$ $The total remuneration of the members of the College is: 187,850 177,435

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

Remuneration of senior officers

2010 2009$

$30,001 - $40,000 1 1 $40,001 - $50,000 - 1 $50,001 - $60,000 1 - $60,001 - $70,000 1 1 $70,001 - $80,000 1 1 $80,001 - $90,000 1 -

$100,001 - $110,000 - 3 $110,001 -$120,000 3 2 $120,000 -$130,000 2 2 $130,000 -$140,000 1 -

$ $1,047,040 1,024,781

The total remuneration of senior officers is: 11 11


The following table represents a summary of the interest rate sensitivity of the College'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 number of senior officers other than senior officers reported as members of the College, whose total of fees,salaries, superannuation, non-monetary benefits and other benefits for the financial year, fall within the followingbands are:


Remuneration of members of the CollegeThe number of members of the College whose total of fees, salaries, superannuation, non-monetary benefits and other benefits for the financial year, fall within the following bands are:




Interest Rate

Carrying Amount

Fixed Interest Rate







7,205,147 4,939,990 1,800,027 465,130 75,469 12,115 - - - 3,722 -


7,869,214 6,200,318 1,338,061 330,835 42,342 3,575 961 - - 475




Interest Rate

Carrying Amount

Fixed Interest Rate







- Payables 696,809 - - 696,809 - 696,809 696,809 - - - -

696,809 - - 696,809 - 696,809 696,809 - - - -

- Payables 545,803 - - 545,803 - 545,803 545,803 - - - -

545,803 - - 545,803 - 545,803 545,803 - - - -






Interest Rate

Carrying Amount

Fixed Interest Rate







7,205,147 4,939,990 1,800,027 465,130 75,469 12,115 - - - 3,722 -


7,869,214 6,200,318 1,338,061 330,835 42,342 3,575 961 - - 475




Interest Rate

Carrying Amount

Fixed Interest Rate







- Payables 696,809 - - 696,809 - 696,809 696,809 - - - -

696,809 - - 696,809 - 696,809 696,809 - - - -

- Payables 545,803 - - 545,803 - 545,803 545,803 - - - -

545,803 - - 545,803 - 545,803 545,803 - - - -




61


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

No senior officers are members of the Pension Scheme.

38 Remuneration of auditorRemuneration payable to the Auditor General in respect to the audit for the current financial year is as follows:

2010 2009$ $

Auditing the accounts, financial statements and performance indicators 48,100 46,000

The expense is included in note 8 'Supplies and services' - (listed in Consultancies & contracted services)

39 Related bodiesThe College has no related bodies.

40 Affiliated bodiesThe College has no affiliated bodies.

41 Supplementary financial information2010 2009

Write-Offs $ $Public property - - Bad debts 2,027 4,047 Inventory - -

2,027 4,047

Losses through theft, defaults and other causes15,784 -

Losses of public moneys recovered (15,784) Other recoveries (53) (383)

1,974 3,664

42 Schedule of income and expenditure by service

Education and Training Delivery.

Losses of public and other moneys and public and other property through theft, default or otherwise

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


62

Great Southern Institute of TechnologyS40 SUBMISSIONStatement of Comprehensive Income

2011

Estimate$

COST OF SERVICES

ExpensesEmployee benefits expense 16,316,075Supplies and services 5,305,193Depreciation and amortisation expense 859,087Finance costsGrants and subsidies 60,000Payments to Non TAFE Providers for VET DeliveryLoss on disposal of non-current assets 30,000Cost of sales 600,000Other expenses 900,000

Total Cost of Services 24,070,355

IncomeRevenueFee for service 1,748,250Student charges and fees 1,680,960Ancillary trading 155,000Sales 680,000Commonwealth grants and contributions 560,000Interest revenue 315,000Other revenue 150,000Total Revenue 5,289,210

GainsGain on disposal of non-current assetsOther gainsTotal Gains 0

Total income other than income from State Government 5,289,210

NET COST OF SERVICES -18,781,145

INCOME FROM STATE GOVERNMENT

State funds 18,286,195 Liabilities assumed by the TreasurerAssets assumed/(transferred)Resources received free of charge 700,000 Total income from State Government 18,986,195

SURPLUS (DEFICIT) FOR THE PERIOD 205,050

OTHER COMPREHENSIVE INCOME

- -

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 205,050

Gains/(losses) recognised directly in equityChanges in asset revaluation reserve

(A) Stat of Comp Income

Appendix 1

63

Great Southern Institute of TechnologyS40 SUBMISSIONBALANCE SHEET

2011

Estimate$

ASSETSCurrent Assets Cash and cash equivalents 822,806Restricted cash and cash equivalents 300,000Inventories 50,000Receivables 400,000Amounts receivable for servicesOther current assets 4,885,989Non-current assets classified as held for sale

Total Current Assets 6,458,795

Non-Current AssetsRestricted cash and cash equivalents 401,000InventoriesReceivablesAmounts receivable for servicesProperty, plant and equipment 28,797,957Intangible assetsOther non-current assetsTotal Non-Current Assets 29,198,957TOTAL ASSETS 35,657,752 LIABILITIESCurrent LiabilitiesPayables 200,000BorrowingsAmounts due to the TreasurerProvisions 1,695,000Other current liabilities 200,000

Total Current Liabilities 2,095,000

Non-Current LiabilitiesPayablesBorrowingsProvisions 720,000Other non-current liabilitiesTotal Non-Current Liabilities 720,000TOTAL LIABILITIES 2,815,000

NET ASSETS 32,842,752

EQUITYContributed Equity 4,899,407 Reserves 10,075,788Accumulated surplus/(deficiency) 17,867,557

TOTAL EQUITY 32,842,752

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

(C) Balance Sheet

Appendix 1

64

Certification of Performance Indicators

We hereby certify that the performance indicators are based on proper records, are relevant and appropriate for assisting users to assess Great Southern Institute of Technology’s performance and fairly represent the performance of Great Southern Institute of Technology for the financial year ended December 31, 2010�

LEN SMITH

Chairperson, Governing Council

22 February 2011

LIDIA ROZLAPA

Managing Director

22 February 2011

65

GOVERNMENT GOALGreater focus on achieving results in key service delivery areas for the benefit of all Western Australians�

DESIRED OUTCOMEA skilled workforce that meets the needs of Western Australia�

Effectiveness Indicators

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

1.1 Annual VET Institute Profile Target Achievement

This performance indicator shows the percentage of student curriculum hours (SCH) achieved for activities as contracted with the Department of Training and Workforce Development for vocational education and training delivery through the Delivery and Performance Agreement (DPA)� The allocation of hours to Great Southern Institute of Technology in specific industry areas is determined by the State Training Strategy which is developed in consultation with industry and the community� The ability of the Institute to fulfill planned delivery reflects its effectiveness in meeting industry and community needs�

The planned figure reported in this indicator is the delivery agreed to in the initial DPA and does not reflect changes to delivery targets agreed to in subsequent addenda to that agreement�

1 | P a g e

GOVERNMENT GOAL Greater focus on achieving results in key service delivery areas for the benefit of all Western Australians.

DESIRED OUTCOME A skilled workforce that meets the needs of Western Australia.

Effectiveness Indicators

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

1.1 Annual VET Institute Profile Target Achievement

This performance indicator shows the percentage of student curriculum hours (SCH) achieved for activities as contracted with the Department of Training and Workforce Development for vocational education and training delivery through the Delivery and Performance Agreement (DPA). The allocation of hours to Great Southern Institute of Technology in specific industry areas is determined by the State Training Strategy which is developed in consultation with industry and the community. The ability of the Institute to fulfill planned delivery reflects its effectiveness in meeting industry and community needs.

The planned figure reported in this indicator is the delivery agreed to in the initial DPA and does not reflect changes to delivery targets agreed to in subsequent addenda to that agreement.

Annual VET Institute Profile Target Achievement

2007 2008 2009 2010 Target Planned SCH 838713 835713 855048 964630

SCH Achieved 862830 889022 971533 1149177

Achievement % 102.9% 106.4% 113.6% 119.1% 100-102% Figure 1 Achievement of Profile (%)

In 2010 the Institute achieved 119.1% of the planned delivery set in the DPA for 2010. This increase over the targeted amount was due to extra funding provided by the Department of Training and Workforce Development throughout the year to ensure that training kept up with skills demand in a new resources boom.

66

In 2010 the Institute achieved 119�1% of the planned delivery set in the DPA for 2010� This increase over the targeted amount was due to extra funding provided by the Department of Training and Workforce Development throughout the year to ensure that training kept up with skills demand in a new resources boom�

The table below shows historical allocations by industry group (based on the occupation or outcome qualifications are intended to serve) and highlights the Institute’s most recent performance in achieving industry delivery targets� Variations in the percentage of achievement show levels of lower or higher than expected demand� All industry group variations are within acceptable range of parameters set in the Delivery and Performance Agreement (DPA)� The delivery targets for 2010 represent delivery agreed to in the initial DPA and do not reflect changes to delivery targets agreed to in subsequent addenda to that agreement�

2 | P a g e

The table below shows historical allocations by industry group (based on the occupation or outcome qualifications are intended to serve) and highlights the Institute’s most recent performance in achieving industry delivery targets. Variations in the percentage of achievement show levels of lower or higher than expected demand. All industry group variations are within acceptable range of parameters set in the Delivery and Performance Agreement (DPA). The delivery targets for 2010 represent delivery agreed to in the initial DPA and do not reflect changes to delivery targets agreed to in subsequent addenda to that agreement.

Profile Achievement by Industry Group

Actual Planned Achieved

Industry Group 2007 2008 2009 2010 01A Recreation, Sports and Entertainment 20100 5065 1870 1730 1200 144.2%

01B Visual and Performing Arts 46535 52872 59069 64483 61760 104.4%

01C Design 18255 16930 22609 16513 18800 87.8%

02A Automotive 16669 25319 32295 27642 25068 110.3%

03A Building and Constructions 57157 64816 65510 86144 80767 106.7%

03B Surveying and Building 6760 9140 6330 11190 7010 159.6%

04A Community Service Workers 77225 92410 103830 71615 41480 172.6%

04B Education and Childcare 33015 40865 61875 61800 68380 90.4%

04C Health 32940 30558 39397 95141 87049 109.3%

04D Library Workers

05A Finance, Insurance Property Service Workers 2236 2566 2137 3352 2000 167.6%

06A Food Trades and Processing 32244 6757 9654 2145 13853 15.5%

07A Clothing Footwear and Soft Furnishings 12059 8365 8885 8380 9175 91.3%

07B Furniture Manufacture 12341 6721 7358 5681 6028 94.2%

08A Communications

08B Printing and Publishing 2955 2750 4600 59.8%

09A Engineering and Drafting 3124 2150 1300 400 1740 23.0%

09B Metal and Mining 26122 25621 30136 29417 28172 104.4%

10A Animal Care

10B Forestry, Farming and Landcare 103111 131867 135687 201331 113543 177.3%

10C Fishing

10D Horticulture 54391 32214 36707 59744 35979 166.1%

11A Process Manufacturing

12A Personal Service 31270 42593 36599 32925 35217 93.5%

12B Retail 2444 846 20 1405 650 216.2%

13A Cooking 8285 13731 7615 18844 10181 185.1%

13B Hospitality 8771 7471 4695 14370 3491 411.6%

13C Tourism 6340 4020 2930 4730 3015 156.9%

13D Travel Agents

14A Transport Trades, Storage and Associated 2065 1280 1446 372 5260 7.1%

15A Electrical and Electronic Engineering 5068 3640 139.2%

15B Electrical Trades 20140 20519 20173 23465 18182 129.1%

16A Accounting and Other Business Services 42090 42325 40975 52570 48500 108.4%

67

Total Profile Delivery 1,149,177 SCH

Non Profile Delivery 202,978 SCH

Institute Total Delivery 1,352,155 SCH

The Delivery and Performance Agreement allows for flexibility in shifting delivery between industry groups within agreed tolerances� In 2010 variation between planned and actual delivery in industry groups was caused by

• additional programmes and SCH allocated to the Institutes to ensure that training meets skills demand in the recovering resources sector

• the original SCH allocation from the Department of Training and Workforce Development insufficient to meet local demand

• increased targets for delivery in skills shortage areas�

All variations are within the tolerances set by the Delivery and Performance Agreement�

1.2 Overall Student Satisfaction

The performance indicator of overall student satisfaction expresses the number of ‘very satisfied’ and ‘satisfied’ respondents, which is expressed as a proportion of the total survey respondents� It measures students’ perceptions of the effectiveness of the Institute’s vocational education and training services�

Student Satisfaction Survey

Patterson Market Research conducted a student satisfaction survey on behalf of the Department of Training and Workforce Development and State Training Providers in October 2010, with the summary of results being published in January 2011� The survey sought students’ views on the quality of vocational education training being delivered� Students were asked about the quality of teaching and assessment, the suitability of teaching methods and the quality of the course experience�

The 2010 survey was conducted using a sample of Great Southern Institute of Technology (GSIT) students selected from populations of institution-based students (IBS) and employment-based students (EBS)�

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Actual Planned Achieved

Industry Group 2007 2008 2009 2010 16B Management 10560 11205 9370 13960 13780 101.3%

16C Office and Clerical 57850 63670 76410 79155 65500 120.8%

17A Computing 29351 44120 48183 38100 39625 96.2%

18A Science and Technical Workers 3698 3115 1778 13760 8000 172.0%

19A ACE

19B Adult Literacy/ ESL 64540 43890 62270 67260 66675 100.9%

19C Languages 7465 7920 7080 7245 7400 97.9%

19D Miscellaneous

19E Targeted Access and Participation Courses 13677 28081 24385 26490 24135 109.8%

862830 889022 971533 1149177 964630 119.1%

Total Profile Delivery 1,149,177 SCH

Non Profile Delivery 202,978 SCH

Institute Total Delivery 1,352,155 SCH

The Delivery and Performance Agreement allows for flexibility in shifting delivery between industry groups within agreed tolerances. In 2010 variation between planned and actual delivery in industry groups was caused by

• additional programmes and SCH allocated to the Institutes to ensure that training meets skills demand in the recovering resources sector

• the original SCH allocation from the Department of Training and Workforce Development insufficient to meet local demand

• increased targets for delivery in skills shortage areas

All variations are within the tolerances set by the Delivery and Performance Agreement.

1.2 Overall Student Satisfaction

The performance indicator of overall student satisfaction expresses the number of 'very satisfied' and ‘satisfied’ respondents, which is expressed as a proportion of the total survey respondents. It measures students’ perceptions of the effectiveness of the Institute’s vocational education and training services.

Student Satisfaction Survey

Patterson Market Research conducted a student satisfaction survey on behalf of the Department of Training and Workforce Development and State Training Providers in October 2010, with the summary of results being published in January 2011. The survey sought students' views on the quality of vocational education training being delivered. Students were asked about the quality of teaching and assessment, the suitability of teaching methods and the quality of the course experience.

The 2010 survey was conducted using a sample of Great Southern Institute of Technology (GSIT) students selected from populations of institution-based students (IBS) and employment-based students (EBS).

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Of the 2,712 potential population identified, 1,945 were surveyed and the response rate was 23�0% The overall satisfaction rate for 2010 was 91�3% with a relative sampling error of +2�4% at a 95% confidence level� The relative sampling error is a measure of the accuracy of the sampling process in giving a correct estimate of reported items�

As in previous years, the data was weighted to ensure that the sample that was achieved was representative of the student population� The data was weighted by age, training type and Indigenous status�

The 2010 overall satisfaction rate for Great Southern Institute of Technology is within the target range and higher than the state satisfaction average of 87%� The result is higher than for 2009 but reflects a consistent result over time and within confidence intervals�

Student Outcomes Survey

The aim of the national Student Outcomes Survey is to measure vocational education and training (VET) students’ employment, further study destinations and the opinions of the training undertaken�

The National Centre for Vocational Education Research conduct surveys with an appropriate sample design to produce statistically reliable Institute level data in alternative years� Institute level data was not available in 2008 and 2010�

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Of the 2,712 potential population identified, 1,945 were surveyed and the response rate was 23.0% The

overall satisfaction rate for 2010 was 91.3% with a relative sampling error of ±2.4% at a 95% confidence level. The relative sampling error is a measure of the accuracy of the sampling process in giving a correct estimate of reported items.

As in previous years, the data was weighted to ensure that the sample that was achieved was representative of the student population. The data was weighted by age, training type and Indigenous status.

Student Satisfaction

2007 2008 2009 2010 Target

GSIT 90% 93% 89% 91% 88-92%

WA 87% 85% 86% 87%

Figure 2 Student Satisfaction Rate

The 2010 overall satisfaction rate for Great Southern Institute of Technology is within the target range and higher than the state satisfaction average of 87%. The result is higher than for 2009 but reflects a consistent result over time and within confidence intervals.

Student Outcomes Survey

The aim of the national Student Outcomes Survey is to measure vocational education and training (VET) students’ employment, further study destinations and the opinions of the training undertaken. The National Centre for Vocational Education Research conduct surveys with an appropriate sample design to produce statistically reliable Institute level data in alternative years. Institute level data was not available in 2008 and 2010.

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The 2009 Student Outcomes Survey was conducted by the social Research Centre on behalf of the National Centre for Vocational Education Research (NCVER) and was funded by the Department of Education, Employment and Workplace Relations (DEEWR)� The results were published in December 2009�

The survey was administered to Great Southern Institute of Technology (formerly Great Southern TAFE) students who undertook their studies at the Institute and graduated in 2008� The survey included all Great Southern Institute of Technology students who completed a Certificate, Advanced Certificate, Associate Diploma, Diploma, Advanced Diploma or Bachelors Degree, and who had an Australian address as their usual address� Graduate Employment status was measured as at 29 May 2009 for each category (employed, unemployed and not in labour force), and the ratio of graduates in each category compared to valid respondents expressed as a percentage�

Data from this survey was used to measure graduate employment status and graduate satisfaction�

1.3 Graduate Employment Status

The proportion of graduates in employment is a key performance indicator that shows the extent to which the Institute is meeting industry and community need for training services that equip graduates for changing employment opportunities�

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Target: 78-82%

The 2009 Student Outcomes Survey was conducted by the social Research Centre on behalf of the National Centre for Vocational Education Research (NCVER) and was funded by the Department of Education, Employment and Workplace Relations (DEEWR). The results were published in December 2009.

The survey was administered to Great Southern Institute of Technology (formerly Great Southern TAFE) students who undertook their studies at the Institute and graduated in 2008. The survey included all Great Southern Institute of Technology students who completed a Certificate, Advanced Certificate, Associate Diploma, Diploma, Advanced Diploma or Bachelors Degree, and who had an Australian address as their usual address. Graduate Employment status was measured as at 29 May 2009 for each category (employed, unemployed and not in labour force), and the ratio of graduates in each category compared to valid respondents expressed as a percentage. Data from this survey was used to measure graduate employment status and graduate satisfaction.

1.3 Graduate Employment Status

The proportion of graduates in employment is a key performance indicator that shows the extent to which the Institute is meeting industry and community need for training services that equip graduates for changing employment opportunities.

Graduate Employment Status

Figure 3 Graduate Employment Status

The 2009 Student Outcomes Survey report for Great Southern Institute of Technology indicated that the graduate employment rate for the Institute was 78.2% in keeping with state and national results for the survey and within the target range.

Note 1: Figure 3 is taken from Student Outcomes Survey targeting years to 2009. The Institute is unable to provide data for 2008 and 2010 as statistically valid Institute level data was not available. The National Centre for Vocational Education Research conducts surveys with an appropriate sample design to produce statistically reliable Institute level data in alternative years commencing from 2005.

The 2009 Student Outcomes Survey report for Great Southern Institute of Technology indicated that the graduate employment rate for the Institute was 78�2% in keeping with state and national results for the survey and within the target range�


In 2007 the data for graduate employment outcomes did not include graduates who were enrolled in training at the time of the survey. In 2009 the question about current training

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was altered from ‘are you still enrolled in training’ to ‘are you still enrolled in the training shown on the front of the form’ and no students responded in the affirmative. From 2007 the calculation of graduate employment outcomes includes all graduates who are not still enrolled in the training indicated in the survey sample data.

1.4 Graduate Satisfaction

Graduate satisfaction is a key performance indicator that measures the extent to which Great Southern Institute of Technology graduates had wholly or partly achieved their main reason for undertaking the course and is compared to the State average� It measures students’ perceptions of training effectiveness�

The Student Outcomes Survey report for Great Southern Institute of Technology, published in 2009 indicates that the overall graduate satisfaction for the institute has improved from 86�6% to 90�0%� and compares well with state and national results�


In 2007 the data for graduate satisfaction did not include graduates who were enrolled in training at the time of the survey. In 2009 the question about current training was altered from ‘are you still enrolled in training’ to ‘are you still enrolled in the training shown on the front of the form’ and no students responded in the affirmative. From 2007 the calculation of graduate satisfaction includes all graduates who are not still enrolled in the training indicated in the survey sample data.

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In 2007 the data for graduate employment outcomes did not include graduates who were enrolled in training at the time of the survey. In 2009 the question about current training was altered from ‘are you still enrolled in training’ to ‘are you still enrolled in the training shown on the front of the form’ and no students responded in the affirmative. From 2007 the calculation of graduate employment outcomes includes all graduates who are not still enrolled in the training indicated in the survey sample data.

1.4 Graduate Satisfaction

Graduate satisfaction is a key performance indicator that measures the extent to which Great Southern Institute of Technology graduates had wholly or partly achieved their main reason for undertaking the course and is compared to the State average. It measures students’ perceptions of training effectiveness.

Graduate Satisfaction

Figure 4 Graduate Satisfaction

The Student Outcomes Survey report for Great Southern Institute of Technology, published in 2009 indicates that the overall graduate satisfaction for the Institute has improved from 86.6% to 90.0%. and compares well with state and national results.


In 2007 the data for graduate satisfaction did not include graduates who were enrolled in training at the time of the survey. In 2009 the question about current training was altered

Target: 86-90%

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Efficiency Indicators

2.1 Overall Cost per Student Curriculum Hour (SCH) for Aggregate Institute Delivery

The overall cost per SCH is an efficiency measure that shows the aggregate unit cost of delivery output per SCH, based on the delivery costs (total cost of services) as detailed in the financial statements�

The Institute’s 2010 total cost of services per student curriculum hour is $17�16 is less than the section 40 estimate to Treasury of $19�97�

The variation of -$2�81 is attributable to the variation of planned delivery over the year as discussed in 1�1� An increase in SCH over the original targeted amount was due to extra funding provided by the Department of Training and Workforce Development to meet the skills demand in a recovering minerals sector�

Note 3: Up until 2007 the cost per SCH was based on a total cost of services which included capital user charge. From 2008, capital user charge is not included in the calculation of total cost of services.

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from ‘are you still enrolled in training’ to ‘are you still enrolled in the training shown on the front of the form’ and no students responded in the affirmative. From 2007 the calculation of graduate satisfaction includes all graduates who are not still enrolled in the training indicated in the survey sample data.

Efficiency Indicators

2.1 Overall Cost per Student Curriculum Hour (SCH) for Aggregate Institute Delivery

The overall cost per SCH is an efficiency measure that shows the aggregate unit cost of delivery output per SCH, based on the delivery costs (total cost of services) as detailed in the financial statements.

Overall Cost per SCH

Figure 5 Cost per SCH for Aggregate Institute Delivery Target: $19.97

The Institute’s 2010 total cost of services per student curriculum hour is $17.16 is less than the section 40 estimate to Treasury of $19.97.

The variation of -$2.81 is attributable to the variation of planned delivery over the year as discussed in 1.1. An increase in SCH over the original targeted amount was due to extra funding provided by the Department of Training and Workforce Development to meet the skills demand in a recovering minerals sector.

Note 3: Up until 2007 the cost per SCH was based on a total cost of services which included capital user charge. From 2008, capital user charge is not included in the calculation of total cost of services

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Other Financial Disclosures

Fees and Charges TI903 (13) (i)

The institute’s fees and charges are set by the Department of Training and Workforce Development�

Future Capital Projects TI903 (13) (ii)

The buildings that make up the new Environment and Primary Industries complex on Anson Road remain uncompleted at the end of the year and have since been completed in 2011�

Estimated costs to complete $182,894

Estimated total cost of project $3,015,197

Stages 2 and 3 of the Automotive Workshop and upgrade of Carpentry and Joinery and Metals workshops remain uncompleted at the end of the year and are expected to be completed in 2011�


Estimated total cost of project $1,500,000

The construction and delivery of a new demountable classroom at Denmark campus remained incomplete at the end of the year and has since been completed in 2011�


Estimated total cost of project $150,217

TI903 (13) (iii)3

Staff employed by Great Southern Institute of Technology

27�11�08 24�12�09 23�12�10

Fixed Pay 175 186 189

Casuals 99 71 126

Governance Disclosures

There were no disclosable interests that any senior officers within the agency were required to report during the year�

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Advertising

$

Advertising Agencies OMD 42,197�06

Media Decisions 15,359�89

Market Research Nil

Polling Organisations Nil

Direct Mail Organisations Australia Post (pamphlet drop) 11,791�71

Media Advertising Orana Cinemas 3,120�00

Denmark Bulletin 385�05

Denmark Chamber of Commerce 336�12

Albany Chamber of Commerce 912�18

Great Southern Herald 489�09

Albany Gateway Internet 2,496�36

Kojonup News 568�18

Plantagenet News 646�53

Staff Advertising - vacancies Adcorp 7,780�17

86,082�34

Disability Access and Inclusion Plan Outcomes

Great Southern Institute’s Disability Access and Inclusion Plan (DAIP) 2007 – 2011 outlines the institute’s strategies to ensure the inclusion of people with disabilities in all aspects of training and events�

A report on the DAIP Implementation Plan 2009-2011 was provided to the Disability Services Commission in July 2010�

The institute consults with students to adapt its service delivery and provide a range of individualised supports to meet the learning needs of students with disabilities participating in training across the institute’s campuses�

Customised accredited training is provided for people with disabilities that promotes pathways to further education, training and employment including Certificate II and III in Clothing Production, Certificate I in Visual Art and Contemporary Craft, and Certificates in Gaining Access to Training and Employment; Introductory Woodwork and Art classes�

In 2010 a Certificate I in Hospitality course was conducted by the institute� This training was designed to meet the needs of a range of people with disability�

Great Southern Institute of Technology continues to work collaboratively with community agencies to support the inclusion of people with disabilities through Second Click computer literacy classes and the Lifestyle+ program�

During 2010 the institute, in partnership with other community agencies, conducted a series of Around the Garden workshops for people with disabilities at the Rainbow Coast Neighbourhood Centre’s Community Garden to further develop their horticulture, employability and life skills�

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Accessibility improvements have been progressively implemented across the institute including upgraded pathways throughout the Albany campus, the installation of an additional accessible parking bay, an accessible toilet, a ramp to a demountable classroom and automatic doors� Institute information is provided in a range of formats on request and texts and learning materials are provided in accessible formats, including electronically� The Disability Liaison Officer liaises with community organisations, schools and agencies and provides information through e-newsletters and community groups to ensure people with disabilities are informed of the institute’s training opportunities and support services� Information regarding the institute’s courses, services, events and facilities, including services for people with disabilities, is available on the institute website, which meets W3C Web Content Accessibility guidelines�The institute provided information and training to staff to ensure quality service to all clients, including an awareness of issues affecting people with disabilities� Information on meeting the needs of students with disabilities is provided to staff at induction sessions and online� Staff attended Mental Health First Aid Workshops in 2010� People with disabilities were encouraged to provide feedback on the institute’s accessibility, services and training, through customer feedback forms, liaison with community agencies assisting people with disabilities into training and employment, and through the institute’s complaints and grievance procedures�

Compliance with Public Sector Standards and Ethical CodesDuring 2010, there were no allegations of breaches of Public Sector Standards from internal or external clients� In terms of compliance with Ethical codes and behaviour, there were two minor issues involving non-compliance with the Institute Code of Conduct which have been investigated and resolved� There were also two issues alleging unsatisfactory performance by staff� Of the latter, one has been dealt with through the normal management process and the other will be ongoing into 2011� In addition, there was an instance of serious misconduct which involved an officer misusing the Institute corporate credit card along with theft of cash from Institute premises� The matters were referred to the Police, reported to the CCC and resulted in the employee being charged by the Police and their employment terminated� Processes have been put in place to mitigate the risk of this occurring again and the majority of the money involved has been reimbursed to the Institute by the financial institution involved� During 2010, the Institute rolled out the 6 modules for the Accountable and Ethical Decision Making Framework as an online workshop to all Institute staff and will ensure completion during 2011� The Institute continues to promote awareness of our Ethical codes via staff meetings, induction programs, posters and general electronic communication�

Recordkeeping Plan

The Education and Training sector submitted a single Recordkeeping Plan [RKP] to the State Records Commission in 2004� In 2010, after the demerger of Education and Training, separate RKPs were lodged�

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The Training sector RKP is due to be reviewed, updated and submitted to the State Records Commission by October 2011�

Great Southern Institute of Technology is a member of the TAFEWA Records Management Network [TRMN] – all members are contributing to this review and will ensure an updated RKP is submitted on time�

In accordance with Standard 2, Principle 6 of the RKP, all government organisations are to ensure that their employees comply with the RKP� Great Southern Institute of Technology has developed strategies to ensure its employees are aware of their responsibilities�

State Records Commission Standard 2 Recordkeeping Plans: Principle 6 - Compliance

Whether the efficiency and effectiveness of the organisation’s recordkeeping systems has been evaluated or alternatively when such an evaluation is proposed�

Great Southern Institute’s recordkeeping systems were evaluated this year� In August 2010, we upgraded to TRIM Context version 6�2�5� In preparation for the roll out to staff (which is planned for 2011), records staff are currently setting up the necessary components of TRIM Context, such as security settings, locations and the integration with GroupWise and MS Office� All existing policies and procedures are being reviewed and updated and some simple documents demonstrating how to use TRIM Context are being developed for staff�

The nature and extent of the recordkeeping training program conducted by, or for, the organisation�

Updates and information on recordkeeping and records management are relayed to staff as necessary� In 2009, we obtained access to the (then) Department of Education and Training’s online Records Awareness Training [RAT] course and commenced rolling it out to staff� We now pay an annual fee to enable us to have ongoing access to this course� More than 50% of staff have now completed the RAT course and in 2011, it will be ensured that anyone who becomes a user of TRIM Context has successfully completed it� Prior to enrolment in the course, one-on-one or small group training will be conducted by records staff to introduce both the course and TRIM Context�

Whether the efficiency and effectiveness of the recordkeeping training program has been reviewed or alternatively when this is planned to be done�

Recordkeeping awareness training was last reviewed in 2008� As part of this review, we implemented the RAT course� The majority of staff who have undertaken the course have successfully demonstrated their understanding of recordkeeping at Great Southern Institute of Technology� Accordingly, once all current staff have completed the course, future staff will be enrolled soon after they commence employment�

Assurance that the organisation’s induction program addresses employee roles and responsibilities in regard to their compliance with the organisation’s recordkeeping plan�

Induction sessions for new staff are conducted biannually, early in semesters one and two� Additional sessions are held as required� All new staff receive in their induction kit a copy of the State Records Office 2006 publication “Recordkeeping in Western Australia : Who is Responsible”� A tour of the College (including the Records section) is given to all new staff� The Records Manager gives a brief presentation on records management, with topics covered including an overview of individual recordkeeping responsibilities, the legislative framework and procedural documentation�

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SustainabilityThe institute’s Sustainability Policy and Action Plan (2010-2012) endorsed by the Executive Committee in 2009 was implemented in 2010�The plan has four central components as follows: developing a workforce skilled for sustainability in the Great Southern region and beyond; providing products and services that support skills for sustainability; demonstrating Great Southern Institute of Technology’s leadership in the adoption of sustainability values principles and practices; and reducing the institute’s carbon footprint�A committee was formed to drive the delivery of the four components�At the end of the year, plans for two major initiatives were progressing:• Closed Loop – George’s restaurant sends food scraps to the horticulture centre for

composting and the centre supplies fresh herbs, fruit and vegetables to the restaurant’s kitchen� This process will entitle George’s Restaurant to apply for a green tick in recognition of its sustainability principles

• Solar Generation – Considerable paper savings across the institute will fund photo voltaic solar panels as an iconic demonstration of the institute’s commitment, and holistic approach, to sustainability�

In addition, several programs had been implemented:• New recycling bins were installed outside the café to simplify and encourage recycling

of packaging• A water filter was set up in the café to reduce plastic bottle use• Motion detectors were installed in the toilets to turn lighting off when vacant• Schemes for recycling batteries and toner cartridges were introduced to augment the

existing paper, cardboard and plastics recycling scheme�Savings are evaluated and funds are channelled to larger sustainability projects across the institute�Positive feedback has been received from the Diploma of Sustainability students, many of whom are current staff members who, with their qualification, lead new projects, advocate the institute’s sustainability principles and monitor existing initiatives�

Occupational Safety and Health (OSH)A 2009 accredited assessment of our OSH systems provided a satisfactory rating (60%) of the institute’s commitment to OSH and injury management� During 2010, this commitment has been further demonstrated in the following ways:• Increasing the OSH Coordinator’s hours to four days a week and in 2011, that has

been increased to a full-time position• Presentation and endorsement by the executive of an OSH framework outlining OSH

priorities and action plans to address any deficiencies highlighted in the 2009 Worksafe Plan Assessment

• Participation in regular workplace inspections by the Managing Director• OSH training conducted to all institute managers and supervisors

• A 42% increase in OSH expenditure from 2009 to 2010 (exclusive of salary expenditure)�

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The 2009 assessment also identified that the institute has effective mechanisms in place for consulting with employees, chiefly through the following mechanisms:

• Regular meetings of the OSH Committee

• Formal OSH issue resolution procedures

• Accessible, active and dedicated OSH representatives

• Effective communication mechanisms

• Regular and accessible training�

The institute has a workers compensation and injury management procedure which complies with the Act� Most return-to-work programs are administered in-house in consultation with medical practitioners, injury management consultants and other workers compensation practitioners via our relationship with the Employee Support Bureau within ETSSC�

As mentioned, an accredited assessment of institute OSH management systems was conducted in 2009 which included a summary of findings� These findings were used to formulate the institute OSH Framework and action plan for the next 18 months�

Annual Performance Statistics for the 2009-2010 financial year are as follows:

Number of Fatalities: Nil

LTI/D incidence rate: �328

LTI Severity Rate: 0

% of workers RTW within 28 days: 100%

% of managers trained in OSH: 100%�

Principles of Public Sector Governance

The institute’s approach to the principles of accountability, transparency/openness, integrity, stewardship, efficiency and leadership are demonstrated throughout the Annual Report�

Authority for Directions

Great Southern Institute of Technology has received no additional directions and guidelines in relation to vocational education and training matters through the course of 2010�

Strategic and Business Plans

In 2010 the institute released a new three-year Strategic Plan and annual Business Plan according to TrainingWA strategic outcomes and guidelines, endorsed by the Governing Council�

International Students

The institute has appointed an officer responsible for providing international student support� Services provided by this officer include: accommodation and employment assistance, pastoral care, liaison with lecturers and assistance with visa enquiries�

Documents

Annual report 2010