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CY. O'CONNORINSTITUTEEDUCATION I TRAINING

2010 ANNUAL REPORT C.V. O'Connor Institute

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STATEMENT OF COMPLIANCE 4

OVERVIEW 5

Chairperson's Report 5

Managing Director's Report 6

Executive Summary 8

Organisational Overview 9

Organisation Vision, Mission and Values 11

Governing Council 12

Organisational Structure 13

Performance Management Framework 14

AGENC', 21

2010 Snapshot 21

Institute Award Winners 22

2010 Achievements 23

KEY PERFORMANCE INDICATORS 26

Certification 26

Desired Outcome 27

Key Effectiveness Performance Indicators 28

Key Efficiency Performance Indicators 33

SIGNIFICANT ISSUES AND TREND! 34

STRATEGIC PRIORITIES 2011 35

DISCLOSURES AND COMPLIANC 36

Legislation Impacting on the Institute 36

Ministerial Directives 37

Staffing Overview 37

Governance Disclosures 38

Advertising 39

Disability Access and Inclusion Plan Outcomes 41

Standards and Ethics 43

FINANCIAL STATEMENT 45

Certification 45

Independent Audit Opinion 46

Financial Statements 49

INSTITUIL LJCIHILJ

Annual Report 2010 13

STATEMENT OF COMPLIANCE

Hon Peter Collier BA DipEd MLC

Minister for Energy; Training and Workforce Development; Indigenous Affairs

11th Floor, Dumas House

2 Havelock Street

WEST PERTH WA 6005

Dear Minister,

In accordance with Section 54 of the Vocational Education and Training Act 1996 and Section 61 of theFinancial Management Act 2006, we have pleasure in submitting for your information and presentation toParliament, the Annual Report of C.Y. O'Connor Institute for the year ending 31st December 2010.

The Annual Report has been prepared in accordance with the provisions of the Financial ManagementAct 2006 and the Vocational Education and Training Act 1996.

Re oic07,1,,2,6t

Eileen O'Connell

Chair, Governing Council

C.Y. O'Connor Institute23 March 2011

Managing DirectorC.Y. O'Connor Institute23 March 2011

4 I C.Y. O'Connor Institute

OVERVIEW CHAIRPERSON'S REPORT

Eileen O'Connell I Chair, Governing Council

It is fitting that in the year in which we celebrated 25years of contribution to education and training in theWheatbelt, the Institute has embarked on a new andexciting journey to re-position as a provider of tertiaryeducation through open learning. Withoutcompromising its focus on vocational training, theInstitute has commenced the task of developing thecapacity to deliver higher education programs andthus enhance its ongoing relevance in the future.This is a significant undertaking by any standards, andis a testimony to the vision and energy of ManagingDirector, John Scott and his Executive team.

Aligned with the Minister's strategic intent for theState Training Providers to become moreindependent in their operations, the Institute re-branded during the year adopting the new title ofC.Y. O'Connor Institute. Although 'TAFE' had strongbrand recognition in the Wheatbelt, the Council wasconvinced that it created other opportunities,particularly within the higher education sector.

One such opportunity has been created by CurtinUniversity re-locating their Agribusiness programsfrom Muresk to their Bentley campus. The decision bythe Institute to develop, from the bottom up, anAssociate Degree in Agribusiness will facilitate thecontinuity of agricultural higher education at Muresk.May I congratulate lecturer Anna Kennedy andGeneral Manager Rob Meecham for their leadershipin this endeavour; and General Manager DeliaPascua-McGlew and Principal Lecturer Sharon Rossfor their diligence in developing the suite ofacademic policies.

I am particularly pleased to report that, for the thirdconsecutive year, the Institute has beenindependently assessed to have the highest levels ofstudent satisfaction of all State Training Providers.

This is an impressive achievement by any standards,and is directly attributed to our expert staff who arepassionate about teaching and learning, andcreating a highly supportive student experience. Icommend the staff for some very positive outcomesachieved during the academic year. Examples ofwhere we particularly excelled are:

the Certificate IV in Small Business Managementprogram delivered to students incarcerated inAcacia Prison, which resulted in the lecturer DrSal< Sarangapani being recognized by Serco withthe global 'Pulse' award;

the Certificate II in Leadership program forAboriginal students at the Moora campus,delivered by lecturer Hay ley Holland;

the delivery of the Certificate IV in Training andAssessment by Principal Lecturer Sharon Ross; and

the development of a Certificate IV in Businessprogram contextualized for employees in thefarm machinery dealership sector acrossAustralia, developed by lecturer Wendy Lorrimar.

The re-structure of the Institute was supported byGoverning Council on the basis that it will delivermore capability into the sub-regions of theWheatbelt. I particularly welcome the six newappointments to Director positions, including fournew Regional Directors: Kim MacLeod (Avon); LindaBright (Northern); Stephen Madson (Southern); RicNewman (Eastern); the Director, Trades Skills andDelivery Support: Peter Chitlings; and the Director,Centre for Agribusiness and Farm Technology: PeterMcGlew.

The Governing Council was pleased to welcome twonew members during 2010: Ms Sandra Randell (fromCervantes); and Mr Paul Tomlinson (from the businesssector in Northam). Both members have settled intothe role very well. On a sad note, late in the year Ireceived a letter of resignation from long-servingCouncil member Heidi Astbury. May I take thisopportunity to thank Heidi, on behalf of the Institutecommunity, on her contribution to Council over aperiod of seven years.

2010 has been a year of solid performance and Icongratulate all staff on their personal contribution tothis outcome. With a new leadership team andmanagement structure, coupled with a new visionand brand, the Institute is well-positioned for anexciting future.


OVERVIEW MANAGING DIRECTOR'S REPORT

John Scott I Managing Director

During 2010, the Institute commenced a majorre-positioning exercise by committing to expand itsdelivery to include higher education programs, andthus develop as Western Australia's first, truly dual-sector institution. As part of this undertaking, theInstitute re-branded as C.Y. O'Connor Institute, tosignal to the community the strategic intent todevelop as a regional Institute that delivers tertiaryeducation though open learning. A key componentof the proposed initiative will be the relationshipbetween the Institute and the Muresk campus.

To support the general expansion of the Institute, anorganisational review was conducted in the secondquarter, leading to a new management structurewith more senior appointments in sub-regional areas.The new Regional Director positions were appointedby the end of the year, along with appointments tothe positions of Director, Trades Skills and DeliverySupport; and the Director, Centre for Agribusinessand Farm Technology. In the new structure, these sixDirector positions will be supported by four GeneralManager positions, with appointments to three ofthese positions being in place by the end of the year.

Work began in earnest in the second quarter todevelop an Associate Degree in Agribusinessqualification, which was decided to be the entry-point for the Institution into the higher educationsector. A project officer was appointed and alecturer allocated to the task of developing thecurriculum. An advisory committee was formed, ledby a former Director of the Muresk Institute, to guideC.Y. O'Connor Institute in the development of theAgribusiness program. By the end of the year, theInstitute had developed the first draft of a suite ofacademic policies; and had in place an interimAcademic Board and other appropriate structures tosupport the higher education process.

In March, the Minister for Training and WorkforceDevelopment announced the establishment of aCentre for Agribusiness and Farm Technology, as thefocal point for the development of expertise inagribusiness and farm technology within the Institute.This Centre, with its new Director appointed late inthe year, is located at the Muresk campus and will,over time, define the Institute at a state, national andinternational level. The Minister re-affirmed hissupport for the re-positioning of the Institute, and thedevelopment of the Institute as a centre ofexcellence in agriculture, at a very successful Trainingand Workforce Development Forum conducted atthe Muresk campus in August.

Having reached Profile target the previous year, theInstitute was in a strong financial position to invest inthe professional development of the Institute's staff,and $400,000 was allocated across a range ofcapacity-building programs. A feature of thisinvestment was to commit to the development of aPeople Development Framework, to provide a morestructured approach to workforce developmentmatters and, in particular, support the staff in makingthe transition to an open learning tertiary institution.The Institute maintained its strong financial position atthe end of the year.

A significant level of infrastructure developmentoccurred across the four campuses of the Instituteduring 2010, as the bulk of the Better TAFE Facilitiesfunding was expended. This saw a range of physicalimprovements at all campuses, including majorupgrades to support the delivery of the Nursingprogram at the Northam and Narrogin campuses;much-needed additions to the vehicle fleet withpeople movers and a 22-seater bus being positionedin regional campuses; and a range of trailer-based,specialised equipment to support mobile training.

A major capital works program, funded by theDepartment of Training and Workforce Development,to upgrade the trade training facilities at theNortham campus including a new Electrical Tradetraining capability and a stand-alone AutomotiveTechnology Skills Centre, commenced in the secondsemester and is due for completion in early 2011.

At the end of the year, two applications weresubmitted seeking Royalties for Regions funding forthe further development of infrastructure within theInstitute: $37.5m was sought to build a new campus inNarrogin to enable the consolidation of all


vocational training onto a single site adjacent toNarrogin Senior High School; and $5.5m was soughtto build a new Adult and Community EducationCentre in Northam, adjacent to the existing campus.In addition, a Five Year Infrastructure Plan wassubmitted to the Department of Training andWorkforce Development in late 2010, which outlinedthe minor and major capital works, andmaintenance and equipment acquisition prioritiesfor the Institute into the foreseeable future.

An application for $10m in Structural AdjustmentFunding was developed in collaboration with CurtinUniversity, to assist with the transitional arrangementsat the Muresk campus. However, a decision by theAustralian Government on this matter had not beenmade by the close of the year.

The Institute commenced the implementation of athree-year Aboriginal Skills Development Plan at thestart of the year. A highlight of the Plan was thecommencement of a program in Narrogin with afocus on developing Aboriginal people foremployment in the resources sector, which attracted19 enrolments. This program will be repeated in 2011albeit with a slightly different focus. In the fourthquarter, in collaboration with the SouthernAboriginal Corporation and jointly funded by theDepartment of Indigenous Affairs, consultants wereappointed to progress the task of developing thespecifications for an Aboriginal Skills DevelopmentCentre a Nyoongar Bush Academy by anothername based at the Wandering Mission site.

Perhaps the highlight of the year, though, wasreceiving the news that, for the third year in a row,the Institute has been independently assessed ashaving the highest levels of student satisfaction of allof the State Training Providers. This is a reflection ofthe focus within the Institute on excellence inteaching and learning, and on developing strongpartnerships with industry that together ensuregraduates of C.Y. O'Connor Institute are work-readyon completion of their studies.

I thank the Governing Council for their vision andsupport in the exciting task of re-positioning theInstitute as Western Australia's first, truly dual-sectorInstitution.


OVERVIEW EXECUTIVE SUMMARY

2010 marked the 25th anniversary of C.Y. O'ConnorInstitute's contribution to the education and trainingneeds of the Wheatbelt region. In a year of changeand growth, the Institute continued to make apositive contribution to the strength and vitality ofthe region. This was achieved through acomprehensive program that identified andresponded to the workforce skills required to optimiseemployment opportunities and to promote life-longlearning as well as life skills.

As evidence of its ongoing commitment to theeducation and training needs of the region, theInstitute implemented a series of strategic initiativesas outlined in the Institute's new Strategic Plan. Theseincluded the rebranding of C.Y. O'Connor College ofTAFE as C.Y. O'Connor Institute and thereorganisation of operations to enhance servicedelivery. Another significant development was there-positioning of C.Y. O'Connor Institute as a regionalprovider of tertiary education through openlearning. These three key initiatives are expected tohave a positive influence on organisationaloperations and service delivery beyond 2010.

In support of its strategic directions, C.Y. O'ConnorInstitute is committed to developing itself as atertiary institution, with a dual focus on vocationaltraining and higher education and with integratedcurriculum and pathways from school to highereducation. As such, the Institute developedproposals to transition the Muresk campus into amulti-sector, multi-disciplinary facility with a primaryfocus on agricultural higher education and research.This move is in line with the recommendations of thereport on the viability and future use of the Mureskcampus as a provider of post-secondary agriculturaleducation, undertaken by the Hon Hendy Cowanand commissioned by the Minister for Education. Anadvisory committee has been established within theInstitute to guide the development of the highereducation program in Agribusiness.

Partnerships with the community, industry andbusiness continue to be a cornerstone for providinghigh quality education and training programs. Thesepartnerships offer the opportunity to provide a widerange of courses across the region. They assist inensuring that the training needs of industry areaddressed. In addition to, and as a complement to,these partnerships, the Institute utilises alternativedelivery methods based on the innovative use of

technology. Known as blended flexible delivery, thisapproach has provided the Wheatbelt region withmultiple options for accessing vocational educationand training. The use of electronic service deliveryalso opens up the Institute's courses to national andinternational students. It is a key component of theInstitute's program to re-position itself as a regionalprovider of tertiary education through openlearning.

Examples of successful partnerships in 2010 includethe involvement of the Shire of Moora, theDepartment of Education, Holyoake and otherorganisations with the Leadership DevelopmentCourse and the support and commitment of Serco,as the managers of Acacia Prison, to the SmallBusiness Management Course. The developmentand implementation of an e-learning strategy, theformation of an E-Learning Steering Committeetogether with an investment in electronic resourceshas enabled the Institute to offer an increasingnumber of courses via blended flexible delivery. As aresult of this initiative and investment, all courses nowhave the opportunity to develop and deliver usingelectronic means. Achievements in this area includethe availability of all of the health-related coursesvia a range of flexible delivery modes.

Against this background of change and innovation,the Institute continued to perform at or aboveexpectations in all key areas. The level of studentsatisfaction remained high at 92.4% the highest ofall State Training Providers for the third year in a row.The financial position of the Institute remained strongwith $4.1m in reserves at the end of the calendaryear. Moreover, performance targets associated withthe 2010 strategic plan were met in most areasincluding the generation of new training products,the development of Aboriginal Training Services,staff professional development and training,compliance with governance frameworks and thepromotion of the Institute as a viable and accessiblepathway towards higher education.

2011 will be an exciting year of change for C.Y.O'Connor Institute as it brings to fruition many of theinitiatives for which groundwork was laid in 2010.


OVERVIEW ORGANISATIONAL OVERVIEW

C.Y. O'Connor Institute has been providingvocational education and training services for theWheatbelt region of Western Australia for 25 years.To enable service delivery across the 155,000 squarekilometres of the region, the Institute has four majorcampuses strategically located at Northam,Narrogin, Merredin and Moora. 2010 saw thebeginning of negotiation with the State Governmentto occupy the Muresk campus near Northam.

The Institute consists of four directorates whichprovide services and support across all fourcampuses. The directorates are:

Academic Services;

Business Services;

Research and Planning; and

Business Development.

Individually and collectively these directorates applythemselves to the development and implementationof a range of programs to meet the education andtraining needs of the region. This is often achievedthrough engaging and partnering with industry,business and the community. Offering a range ofservices and courses via multiple delivery modes iscentral to attracting students from across the region,the state, the nation and internationally.

Academic Services Directorate

The Academic Services Directorate is responsible forthe development and delivery of vocationaleducation and training programs. These programstarget and support the training and employmentneeds and aspirations of industry, business and thecommunity across the region. Its responsibilities alsoinclude ensuring that the Institute complies withrelevant legislation and external standards. A diverserange of staff deliver services and programs from thefollowing business units:

Regional Trades Portfolio;

Regional Business Portfolio;

Regional Services and Lifestyle Portfolio;

Client Management Information Systems (CMIS);

Customer Services;

Quality and Scope.

Business Services Directorate

All of the corporate services which support theInstitute's operations are delivered by the BusinessServices Directorate. This directorate is alsoresponsible for ensuring that the Institute complieswith relevant legislation and external standards. ThisDirectorate provides a range of services from thefollowing business units:

Finances;

Human Resources;

Information Technology;

Library;

Records Management; and

Bookshop.

Research and Planning Directorate

The main focus of the Research and PlanningDirectorate is the coordination of the strategic andoperational planning and research activities acrossthe Institute. This includes monitoring and reportingon the Institute's key performance indicators andmanaging the continuous improvement programs.The directorate also has a key role in encouragingdisengaged youth, Aboriginal Australians andpeople with a disability to participate in educationand training. Furthermore, the directorate makes amajor contribution to marketing and promoting thecurrent and future activities of the Institute at thelocal, regional and state levels. These and otherservices are delivered from the following businessunits:

Access and Equity;

Community Relations;

Aboriginal Services;

Research and Planning; and

Regional Services.

Business Development Directorate

The Business Development Directorate is responsiblefor the identification, development andmaintenance of commercial opportunitiesassociated with the provision of training to clients ofC.Y. O'Connor Institute.


The four campuses and directorates of C.Y.O'Connor Institute provide a diversity of servicesincluding:

Job readiness skills;

Corporate training;

Delivery of VET in schools;

Guiding services for work-based training;

Holistic skills recognition using recognition of priorlearning (RPL);

Industry consultancy;

New and existing worker traineeships andapprenticeships;

Provision of curriculum and learning materials,including electronic access;

Research and development consultancies;

Short course programs and just-in-time training;

Vocational education and competency-basedtraining according to the Australian QualityTraining Framework (AQTF); and

Work-based delivery and assessment.

In 2010, the Institute had 131 full-time equivalent staff and 5,330 full-time and part-time student enrolments,including 413 apprentices and trainees. It delivered 552,104 student curriculum hours of training across the181 qualifications on scope. Utilising flexible delivery modes, the proportion of training occurring off-campusincreased. Specifically, the increase in online delivery has stimulated enrolments from outside the Wheatbeltregion


OVERVIEW

Our Vision

ORGANISATION VISION, MISSION AND VALUES

C.Y. O'Connor Institute will be recognised as thepreferred provider of vocational education andtraining services in the Wheatbelt.

Our Mission

C.Y. O'Connor Institute will contribute to regionaldevelopment in the Wheatbelt by providing flexibleand innovative vocational education and trainingservices in support of individual, community andindustry aspirations.

Our Values

At C.Y. O'Connor Institute we deliver our programsand services from a foundation of shared values,namely:

Integrity;

Inclusiveness;

Respect;

Honesty; andTrust.

We will demonstrate these values by:

Providing an inclusive and professional learningenvironment;Encouraging responsibility and empowerment;Displaying trusting and respectful behaviour;Behaving with individual and group integrity;Adopting sustainable practices in all Institutefunctions;

Providing modern and flexible methods oflearning for our clients; andProviding equitable access to services andfacilities.

Annual Report 2010 I 11

OVERVIEW GOVERNING COUNCIL

The Governing Council of C.Y. O'Connor Institute comprises a Chairperson, Deputy Chairperson and tenmembers who are appointed by the Minister for Training and Workforce Development. As representatives ofindustry and the community, the members of Governing Council are appointed for their expertise ineducation and training, industry or community affairs and for their ability to contribute to the strategicdirections of the Institute. The Institute's Managing Director is also a member of the Council.

Council Members in 2010 were:

Renira (Eileen) O'Connell Chairperson

Lynnette O'Reilly Deputy Chairperson (appointed 6 April 2010)

Steven Pollard Member

Jan Court Member

Heidi Astbury Member (resignation with effect 31 December 2010)

Helen Bennett Member

Yvonne Green Member

Debra Franks Member

Sandra English Member

Grant Arthur Member

Sandra Randell Member (appointed 3 May 2010)

Paul Tomlinson Member (appointed 11 August 2010)

John Scott Managing Director

Peter Reynolds Executive Officer


OVERVIEW

Enabling Legislation

ORGANISATIONAL STRUCTURE

C.Y. O'Connor Institute is a Statutory Authority established under section 35 of the Vocational Education andTraining Act 1996.

Responsible Minister

The Hon Peter Collier BA DipEd MLC Minister for Energy; Training and Workforce Development; andIndigenous Affairs.

Accountable Authority

The Accountable Authority for C.Y. O'Connor Institute is the Governing Council. The Managing Director is theChief Executive Officer and is supported by an Executive comprising four Directors.

Managing DirectorOffice

Research & Planning Academic Services Business Services Business DevelopmentDirectorate Directorate Directorate

Regional Services Regional Trades Portfolio Finance Data Administrator

Community Relations Regional Business Human ResourcesPortfolio

Aboriginal Services Regional Services & Information TechnologyLifestyle Portfolio

Access & Equity Customer Services Library

Planning & Research CMIS Records Management

Quality & Scope Bookshop


OVERVIEW

Government Goals

PERFORMANCE MANAGEMENT FRAMEWORK

The State Government has developed fivegovernment goals to guide and assist WesternAustralian public sector agencies in developing theirprograms, polices and services. However, due to therange and diversity of government agencies, not allthe goals apply equally to all the agencies. Withthese five government goals in mind, C.Y. O'ConnorInstitute has developed and implemented astrategic plan aimed at increasing its capacity toprovide quality services to its customers.

The State Government strategic objectives asdescribed in these goals are:

Goal 1: State Building Major Projects

Building strategic infrastructure that will create jobsand underpin Western Australia's long-termeconomic development.

Goal 2: Financial and Economic Responsibility

Responsibly managing the State's finances throughthe efficient and effective delivery of services,encouraging economic activity and reducingregulatory burdens on the private sector.

Goal 3: Outcomes Based Service Delivery

Greater focus on achieving results in key servicedelivery areas for the benefit of all WesternAustralians.

Goal 4: Strong Focus on the Regions

Greater focus on service delivery, infrastructureinvestment and economic development to improvethe overall quality of life in remote and regionalareas.

Goal 5: Social and Environmental Responsibility

Ensuring that economic activity is managed in asocially and environmentally responsible manner forthe long-term benefit of the State.

The Institute monitors and reviews its progress againstthese goals and its strategic priorities through anumber of means:

The Managing Director's Performance Agreement;

Monthly Performance Reports;

Bi-monthly Reports to the Governing Council;

Key Performance Indicators; and

Monthly meetings of the Executive ManagementTeam.

The main contribution by C.Y. O'Connor Institute tothe State Government's strategic objectives is to thegoal Strong Focus on the Regions. The Institute alsomakes a contribution to other State GovernmentGaols, in particular Outcomes Based ServiceDelivery and State Building Major Projects.

During 2010, the Institute made a significantcontribution to improving opportunities for thepeople of the Wheatbelt with respect to theidentified goals as indicated below:

State Building Major Projects

The Department of Training and WorkforceDevelopment (DTWD) endorsed a capital worksproject for the Northam campus to establish newand upgraded, trades workshop facilities to:

accommodate increased training delivery in theautomotive and building and constructionacademic areas;

additional students; and

have available 'state of the art' facilities andequipment.

The total cost of the project amounts to $2.9 million.Construction commenced on 18 June 2010 and willbe completed early in 2011. The total expenditure for2010 amounted to $2.4 million. The remaining$500,000 is to be expended in 2011.

Outcomes Based Service Delivery

The main focus of the strategic priorities of C.Y.O'Connor Institute for 2010 was on supporting thedevelopment of sustainable regional communities.However, in contributing to the overall quality of lifein remote and regional areas, the Institute was alsodelivering outcome based services that woulddirectly and indirectly benefit all Western Australians.These strategic priorities, not only contribute to thewell-being of the region, but also to the State'slong-term economic development.


During 2010, the following work was undertaken toachieve Government goals 1, 3 and 4 and theInstitute's strategic objectives:

The Institute committed to expanding its alreadysignificant contribution to regional and statedevelopment by re-positioning itself as aregional provider of tertiary education. As part ofthis re-positioning, C.Y. O'Connor College of TAFEwas re-branded as C.Y. O'Connor Institute. Thenew name symbolises and communicates toindustry, business and the community thestrategic intent to develop as a regionalorganisation that delivers tertiary educationthrough open learning.

As part of the process to become a provider oftertiary education, the Institute commenced thedevelopment of the application for registrationas a non self-accrediting provider of highereducation and, in parallel, the application foraccreditation of the Associate Degree inAgribusiness program. A senior officer within theInstitute was appointed as the General Manager,Higher Education and Business Development, tooversee the implementation of higher educationwithin the Institute.

In 2009, Curtin University announced its intentionto relocate its Agribusiness program from Mureskto its metropolitan campus at Bentley. C.Y.O'Connor Institute recognised that the potentialdecline in practical, experiential agriculturalhigher education in WA and the possible demiseof the iconic Muresk would be detrimental to theinterests of the Wheatbelt and regional WA moregenerally. Thus, the Institute has taken the lead inbringing together regional community leadersand stakeholder groups to consider ways, meansand models to revitalise Muresk.

Throughout 2010 the Institute invested indeveloping relationships with Western AustralianUniversities with a view to promoting pathways tohigher education and to facilitate articulationpathways for students studying higher levelVocational Education and Training qualifications.To this end a Memorandum of Understandingwas signed with Murdoch University and asecond Memorandum of Understanding awaitsconsideration by Curtin University.

The Institute works continuously to ensure that itscourses are relevant to industry, business and thecommunity, thereby providing efficient andeffective service delivery and contributing toeconomic development. Maintenance of theInstitute's Scope of Delivery continuedthroughout 2010 with 30 applications foramendment being lodged with the TrainingAccreditation Council. At the end of 2010, theInstitute maintained 181 qualifications on scope.

The re-positioning of the Institute as a tertiaryeducation provider and the commitment toblended flexible delivery has been supported bya significant investment in technologies.Software and hardware purchases such aspersonal computers, laptops, data projectorsand four new video conferencing systemsprovide great flexibility for lecturers and providestudents with up-to-date equipment. New fileservers and operating systems have given theInstitute great interoperability. Online deliveryoptions have been expanded through theintroduction of a suite of e-learning andcollaboration tools.

As a complement to the E-Learning StrategicPlan and the subsequent introduction ofe-learning software and tools, an e-learningcontinuum was developed to identify trainingneeds of the academic staff. Moreover, theE-Learning Committee developed andimplemented an operational plan for 2010 toguide the investment in resources.

Participating in and providing a leadership rolein an effective inter-agency network in eachregional area was a strategic objective for 2010.Through this initiative the Institute was able toencourage and cement training deliverypartnerships and develop and maintainworkplace delivery and assessment ofapprentices and trainees. Engagement withindustry, business and the community included avariety of vocational education and trainingissues. These included recognition of priorlearning programs; trade training centres;working with the local library in deliveringcourses on English as a second language; agedcare programs; and heavy duty plantapprenticeships. Involvement in and leadinginter-agency networks enabled the Institute to


participate in and contribute to such issues asyouth at risk; Aboriginal participation in training;disability services; and the effective delivery ofgovernment services in the regions. There wasalso active engagement with wider issues ofconcern to the regions such as droughtresponses, economic modelling and naturalresource management.

As part of the strategy to improve its capacity todeliver workplace training and assessment, theInstitute embarked on an initiative to increaseemployer involvement in the training system.Lecturers are now engaging employers at theplanning stage of their courses, and seekinginput on what delivery structure suits them best.Examples of this include training in the areas ofaged care, automotive, business, wool andnursing.

Strong Focus on the Regions

C.Y. O'Connor Institute is the major pubic provider ofvocational education and training in the Wheatbelt,providing services across an area of approximately155,000 square kilometres. The services delivered bythe Institute are provided out of four main campuseslocated in Northam, Narrogin, Moora and Merredin.These regional campuses are supported by 42smaller centres operating via the network ofCommunity Resource Centres (previously known asTelecentres).

During 2010, the Institute progressed a number ofinitiatives aimed at providing more opportunities foraccess to and delivery of vocational education andtraining across the Wheatbelt. It also pursued waysto increase and diversify its services and products tobetter meet the training needs of industry, businessand the community. These activities not onlyaddressed the educational and training needs butalso contributed to the overall quality of life inremote and regional areas.

Highlighted here are examples of the achievementsof each of the four main regional campuses.

Northam Avon Region

The Avon region is centred around Northam, and iswhere the majority of academic and non-academicstaff are located. The Northam campus is the primary

facility in the Avon region, servicing the Shires ofToodyay, York, Northam, Goomalling and Dowerin.This Campus also serves as the administrative centrefor C.Y. O'Connor Institute. Highlights for the Avonregion in 2010 are listed below.

The Northam campus provides trade training inengineering, automotive, and building andconstruction. Pre-apprenticeship courses arealso popular with students aiming to enhancetheir competitiveness for an apprenticeship.

Pre-apprenticeship programs are conducted inthe prisons to assist prisoners with theiremployment aspirations. An effectivepartnership has been formed between theInstitute and various prisons.

The weakened economy in the Wheatbeltduring 2010 led to a slightly reduced number oftrainees and apprentices in the fabrication andlight automotive areas. Conversely, the numberof enrolments in the heavy plant mechanic areahas increased as the skills attained in thisdiscipline are transferable to the mining industry.Such is the demand that the Institute hasappointed two additional lecturers to supportthe delivery of this training in the workplace.

The Trades area has increased the number oftrailers supporting mobile training equipment toten. This enables more flexibility in the delivery oftraining, as the trailers allow the lecturers to go tothe students with all of the equipment they needto support their delivery. In addition, the Tradesarea is trialling night class at the Northam andMoora campuses. To date they have beenpopular and successful.

A factor influencing an increase in enrolmentand interest in the short courses in the Tradesarea, is the increase in licensing requirements foroperating equipment and service provision suchas: chainsaw operations, skippers ticket andoccupational safety and health regulations.

The art exhibitions held throughout the year havebeen both popular and successful. There hasbeen significant community support for andengagement in these programs in a time ofdrought and an uncertain economy in theWheatbelt.


According to industry leaders, the ranger trainingoffered by the Institute is regarded as the bestavailable in Western Australia. It also has acommendable reputation nationally andoverseas.

In 2010 Regional Development Australia (RDA)Wheatbelt partnered with the Institute to deliverleadership training at the Northam campus. Itwas focused on attracting students who haddisengaged from school and was structured andpresented so as to be more attractive to them,including weekend workshops.

By collaborating and liaising with othergovernment agencies, schools and supportorganisations such as: Centre link andemployment agencies, the Institute and itspartners have been able to collect, manageand access up-to-date data and information onstudents. This has enabled the Institute andothers to more readily and appropriately supportand respond to the needs of the students.

A Recognition of Prior Learning (RPL) project wasdeveloped and implemented with theassistance of Pork Industry Training (WA). Itincluded a Certificate III in Agriculture (PigProduction) and Certificate IV in Agriculture forindustry managers and employees. The successof this project, with its approximately 17 students,has been the impetus for a significantly largerRPL project in 2011.

The Institute was successful in tendering forcontinuation of Australian Wool Innovationregional coaching projects. Funding ofenrolments for shearing and wool handlertraining programs was also secured. The woolharvesting qualifications continues to be wellsupported by students. Additional funding hasbeen made available to deliver more try-a-tradedays across the southwest of the state.

Moora Northern Region

The Northern region comprises seven localgovernment areas in the northern Wheatbelt, and isbased at Moora. Regional training is deliveredthrough established centres at Dalwallinu, WonganHills, Dandaragan, Jurien Bay, Gingin, Bindoon,Lance lin and via Community Resource Centres.

During 2010 the Northern region significantlyexpanded and strengthened relationships with localindustry, the community and government agenciesin order to evaluate requirements and delivertraining in the region. Highlights for the Northernregion in 2010 are listed below.

The heavy duty automotive pre-apprenticeshipprogram was successfully introduced with 100%of graduating students selected for anapprenticeship or employment. Industry supportwas a major contributing factor to the positiveoutcome of this program. The Moora campushas had a significant expansion of the facilitiesand equipment in the automotive area. Thismeans that the automotive apprentices in theWheatbelt region now have the choice ofattending placement blocks at either the Mooraor Northam campuses. Better TAFE Facilitiesfunding enabled the construction of a newbuilding and construction facility, making itpossible to keep the original workshop solely forautomotive purposes.

As the Institute continues to re-position itself todeliver higher education, the Northern regioncomplemented this move by introducing aCertificate IV and a Diploma in BusinessManagement, Financial Services as well as VisualArts and Contemporary Craft. These courses,offered from the Moora campus in 2010, alsocater for external students. Art delivery was alsoexpanded considerably. At present, it is evidentthere is a change in students' focus towardsvisual art in that there is a greater level of interestin obtaining a qualification in this study area.Several highly successful exhibitions of studentwork occurred across the region.

The decision to offer the Diploma in Nursing fromthe Moora campus has been extremely wellreceived by the community. The commitment ofthe Institute is a major step towards expandingthe diversity of education offered in regionalareas.

Aboriginal training has also been a major focusfor the Northern region. This was encouraged bya Moora student receiving the 2009 C.Y.O'Connor Aboriginal Student of the Year Award.Eight Aboriginal youth graduated in Certificate Iand II in Leadership Development at Moora in

Annual Report 2010 I 1 7

2010. Students were engaged in severalcommunity-based projects, such as painting amural at the local pool. They also participated inworkshops to build and strengthen theirleadership skills. There was a great deal ofcommunity support for this program. Thecommunity applauded the results of this courseas a major achievement for Aboriginal studentsin the region.

Business and information technology studieswere delivered to local mothers as a result ofpartnership with the Department ofCommunities. Across the Northern region,delivery programs included horticulture, businessadministration, business, computing andinformation technology, metal fabrication,financial services, aged care, visual arts andcontemporary crafts, occupational health andsafety, community services, transport anddistribution and training and assessment.

Narrogin Southern Region

The Southern region comprises twelve localgovernment areas, including the Shires of Brookton,Cuballing, Dumbleyung, Kondinin, Ku lin, Lake Grace,Narrogin, Pingelly, Wagin, Wandering, West Arthurand Williams. The Institutes main campus and twosatellite campuses are located in the town ofNarrogin. Courses are also delivered at thirteenCommunity Resource Centres throughout theSouthern region.

Major areas of delivery were agriculture, businessadministration and management, finance,community service, education support, children'sservices, nursing, automotive, building constructionand civil construction, access and equity programs,visual arts and contemporary craft and training andassessment. Also, in 2010 an increased number ofapprentices and trainees in the trades, retail andlocal government areas were supported. Highlightsfor the Southern region in 2010 are listed below.

As a result of planning in 2009, the AboriginalClients Entering the Resource Sector or ACERSprogram commenced. This program comprisedtwo certificates: Certificate I in WiderOpportunities for Work, and Certificate II in CivilConstruction.

The Institute has continued discussions with theSouthern Aboriginal Corporation to revitalise theformer Aboriginal Mission at Wandering. Theplanned establishment of this mission as aresidential skills development centre forAboriginal clients could result in the delivery ofIndigenous specific training in the areas of, butnot limited to, agriculture, automotive, buildingconstruction, civil construction and horticulture.In addition, the Institute is also workingcollaboratively with the Department ofIndigenous Affairs, the Kaata-KoorlingEmployment and Enterprise DevelopmentAboriginal Corporation (KEEDAC), and theNarrogin Interagency group to ensureIndigenous clients are gaining access to relevanttraining with real employment outcomes.

2010 saw the successful conclusion of the two-year TAFE2Work+ pilot program. This program sawstudents attending the Institute for two and ahalf days per week and school for the remainderof the week. The students studied Certificate II inCommunity Services in Year 11. Then in Year 12,they had a choice of studying Certificate III inCommunity Services, Certificate III in Children'sServices, Certificate III in Education Support orCertificate IV in Preparation for entry intoEnrolled Nursing. The students also graduatedwith their WA Certificate of Education. As a resultof this hugely successful pilot program,TAFE2Work+ will be continued with the inclusionof a two-year automotive program. Thissuccessful program has also enabled theInstitute to assist students in their transition fromeducation to employment, through increasedindustry contacts.

The successful try-a-trade program run at schoolsin 2009 was continued throughout 2010. Thefocus of this program was mainly on the areas ofwool classing, shearing and building andconstruction. Many metropolitan schools alsotook advantage of this program, with woolclassing and shearing being particularly popular.

Throughout the year the Narrogin campuscontinued to work collaboratively with industrygroups. Some of these included the Chamber ofCommerce and Industry, Health and CommunityServices Industry Council, Rural Skills Australiaand the Australian Wool Industry. Close workingrelationships were also maintained with


employment groups such as Forrest Personnel,KEEDAC, Skill Hire, Hotham Personnel, YouthConnections and Community First. Consultationwith local industry was also a priority this year,with a focus on recognition of prior learning andgap training in areas including aged care,automotive and building and constructionindustries. Collaboration with governmentagencies was also important and this includedworking with Mental Health WA, the DisabilityServices Commission, Department of IndigenousAffairs, Centre link and Juvenile Justice.

In the area of youth participation in educationand training, the Narrogin campus workedclosely and in partnership with the Departmentof Education's (DoE) District Education Office inNarrogin. Working with the Manager ofParticipation, the aim was to assist DoE inensuring young people were participating insome form of education or training. The Instituteis a member of the School Business CommunityPartnership Advisory Committee for Narroginand districts.

A strong relationship has been formed withCommunity Arts Network WA. Through thisassociation, the Institute assisted with thesuccessful completion of many Indigenous Artprograms. With the assistance of funding fromthe Pave the Way grant, the Narrogin campuswas able to run a hugely successful arts programfor people with physical and mental disabilities.

The Narrogin campus continued to offer coursesthrough the Community Resource Centrenetwork. This partnership enables access totraining for those in the regions who wouldotherwise not be able to participate due toissues such as: a lack of transport or slow internet.Using this network also afforded the opportunityto run fee for service courses to assist in meetingthe diverse training reeds of the community.

Merredin Eastern Region

The Eastern region is comprised of sixteen localgovernment areas in the eastern Wheatbelt, and isbased in Merredin. Training is also delivered acrossthe region through established centres at Kellerberrinand Quairading, and via Community ResourceCentres in surrounding towns.

During 2010 the region had two main aims. Firstly,there was a consolidation of the programs andactivities implemented in 2009. Secondly, it focusedon developing relationships with the mining andconstruction industries associated with training inrelation to high risk licences and compliancerequirements. Highlights for the Eastern region in 2010are listed below.

The heavy duty automotive apprenticeshipprogram was consolidated and expanded withadditional employers accessing the program.Industry support for localised training continuesto strengthen. However, the Institute was unableto proceed with plans to establish a permanentworkshop facility in 2010 due to funding issues. Itcontinues to lease facilities for this purpose.

Major areas of program delivery in 2010continued to be agriculture, office and clericalstudies, business, computing and informationtechnology, teacher assistant, visual arts andcontemporary crafts, occupational health andsafety and transport and distribution. TheCertificate IV in Training and Assessment wasonce more a popular area of study. There weresignificant numbers of apprentices and traineesin the trades, retail and local government areas.Art delivery was expanded with several highlysuccessful exhibitions of student work across theregion.

The comprehensive VET in Schools program withthe Merredin Senior High School (MSHS)continued to be successful. The existing closerelationship with the MSHS has beenstrengthened with the commissioning of the newTrade Training Centre. Institute staff have hadsignificant input into the design of the newfacility to ensure it meets current and futureindustry requirements. A memorandum ofunderstanding between the Institute and MSHS,for use of the facility, will be developed early in2011.

The Merredin Doorways Community Educationand Training Committee acts in an advisorycapacity to the Institute. It has continued toprovide valuable assistance advice and supportto the Institute during 2010. The DoorwaysCommittee consists of representatives frombusiness, industry, schools, government agenciesand community groups.


The Eastern Wheatbelt region was severelyimpacted by drought in 2010. Eastern region staffhave worked closely with the Department ofAgriculture and Food as the lead agency inresponding to the needs of the farming andbusiness community.

The Institute is also a member of the WheatbeltBusiness Network with a view to enhancing itstraining and workforce development network.

Also in 2010, the Department of Agriculture andFood agreed to fund a skills audit across theEastern region of the Wheatbelt. This providedvaluable information about the training peoplerequested, and how they required it to bedelivered. It also highlighted ways in whichcommunication with people in the region andpromotional activities could be improved.

Changes to Outcome Based ManagementProgram

No changes were made to the Institute's OutcomeBased Management Framework in 2010.

Shared Responsibilities with Other Agencies

C.Y. O'Connor Institute receives its annual fundingallocation from the State Government through aresource agreement (Delivery and PerformanceAgreement) with the Department of Training andWorkforce Development. Under that agreement, theInstitute reports, via the Governing Council, to thedepartment on its outcomes.

lirm111111

S


AGENCY PERFORMANCE

Overall Student Satisfaction

C.Y. O'Connor

92.4%

W.A Average

86.7% AM_2010 Training Delivery Indicators

2010 SNAPSHOT

Achievement of Training Delivery Profile (publicly funded delivery), counted as Student Curriculum Hours(SCH).

Original Planned

569,000

Actual552,104

% Achieved

96.95%

Non-Profile, counted as SCH and expressed as a percentage of total Institute delivery.

Non-Profile

% of Total Institute SCH

74,516

11.89%

Notes:

Non-Profile training activity incorporates Fee for Service, Special Projects (State/DEEWR funded), VET in Schools andtendered industry specific programs.

Cost of Student Curriculum Hours (SCH

This indicator measures the average cost of delivery per SCH, it includes Profile and Non-Profile activity.

Cost per SCH $24.10

Notes:

Cost per SCH is calculated using the following formula:

Cost Per SCH =Total Cost of Services

Total SCH


AGENCY PERFORMANCE

Student Graduation Awards

Anthony Wray

Student of the Year sponsored by NorthamBoulevard

Kylie Dann

Aboriginal Student of the Year sponsored by theShire of Northam

Joshua Lyons

Regional Trades Student of the Year sponsored bythe CBH Group

Nicole Fleay

Regional Business Student of the Year sponsored byWA Farmers

Denese Smythe

Regional Services and Lifestyle Student of the Yearsponsored by Directions

Joshua Lyons

Apprentice of the Year sponsored by NorthamToyota

Michelle Prior

Trainee of the Year sponsored by the Shire ofNortham

Breeanna Waight

Most Improved Student Award sponsored by theAvon Valley Advocate

Kelly Mauch line

James Dawson Memorial Award sponsored byValley Ford/Northam Hyundai

Troy Sprigg

Encouragement Award sponsored by Lin ley ValleyPork

INSTITUTE AWARD WINNERS

2010 Staff Awards for ExceptionalPerformance

Ray Clune

Corporate Technician

Ashley Webb

Trades Technician

Dr Sharon Ross

Principal Lecturer

Wendy Sargeantson

Lecturer Business

Megan Thurkle

Lecturer Nursing (Coordinator Nursing)

Hay ley Holland

Lecturer Leadership

Teresa O'Brien

Lecturer Education Support

Robyn Kidd

CMIS Coordinator

WA Training Awards 2010

WA College of Agriculture, Cunderdin

WA VET in Schools Excellence 2010. Sponsored byApprenticeships Australia

Denese Smythe

WA Vocational Student of the Year 2010. Sponsoredby AMA Apprenticeship and Traineeship Services

Note:

Denese Smythe was also nominated for the AustralianTraining Awards, Vocational Student of the Year 2010.


AGENCY PERFORMANCE

Achievements against the InstituteStrategic Priorities for 2010

In addition to the successes outlined elsewhere inthis report, the following are examples of some of ourachievements aligned to the Institute's strategicpriorities.

Strategic Priority 1

To provide training services to satisfy industrydemand.

The Institute continued to develop its 'academy'model with the establishment of a LocalGovernment Academy which is located atMuresk. The academy model is focused onidentifying and responding to specific industryneeds and areas of economic activity in theWheatbelt. A second academy, the Centre forAgribusiness and Farm Technology, was alsoestablished and located is at Muresk. This Centrewill be further developed to include acommercially-orientated short-course programand an Agriculture Technology Centre with afocus on diffusion of technology, products andpractices. This academy will become thecentrepiece of C.Y. O'Connor Institute.

The Institute identified the industry need to delivercompetencies based on legislated licencerequirements. This involved the consideration of arecruitment program aimed at securing staff withappropriate licences to provide training in areassuch as traffic management, elevated workplatforms (over 11 metres), handling chemicals,working at heights, forklift and occupationalhealth and safety. As part of this program theInstitute increased its trade related courses andrecruited a lecturer to take the lead in developingthe concept of the Industrial and Farm SafetyTraining Centre, based at the Avon Industrial Park.

In partnership with Serco, the management groupresponsible for Acacia Prison, the Instituteconducted a series of programs in small businessmanagement. These programs were conductedwith the support of the prison's education section.Building on the view of education as a life-longlearning process, these programs provide not onlybusiness skills, but also essential life skills for theparticipants. The courses offered include:

2010 ACHIEVEMENTS

Certificate IV Small Business Management andCertificate III Financial Services. Successfulcompletion of the Certificate IV in Small BusinessManagement gives participants the options toprogress to diploma level or university study.

Sustainability was also given a priority in theacademic aspects of the Institute. All the newlyrevised and endorsed training packages haveembedded the sustainability principles in theunits of competency. Sustainability units havebeen integrated into such training packages as:

Tourism Hospitality and Events;

Business Services; and

Construction Plumbing Services IntegratedFramework.


To support the development of sustainableregional communities.

The establishment of an Aboriginal training facilityat the Wandering Mission site was progressed in2010. An education feasibility study wasconducted and extensive consultation wasundertaken with the Southern AboriginalCorporation and the State and CommonwealthGovernment's. As a result, the Department ofIndigenous Affairs agreed to co-fund the projectto develop the specifications for a residentialAboriginal Skill Development Centre. The entireproject is expected to cost in the vicinity of $12m.

C.Y. O'Connor Institute recognises that the farmmachinery dealers and the allied agriculturalmanufacturing industries are major employersacross regional Australia. Therefore, it hasdeveloped a Certificate IV in Business coursespecifically to meet the needs of farm machinerydealers and the allied agricultural manufacturingindustries. The qualification provides candidateswith the skills and knowledge required to managethe physical, human and financial resourceswithin the agricultural mechanisation industries. Ithas been designed to up skill those who arecurrently employed in the industry. It also providesindustry specific training to those who wish toenter the industry.


Working with the Participation Officer from theDepartment of Education in Moora, the Institutedeveloped and conducted two successfulcourses in leadership development. Certificates Iand II in Leadership Development were deliveredfrom the Moora campus. They were focused onyouth aged 15-17 years of age who haddisengaged from formal education. Funding wasobtained through the Competitive AllocatedTraining Fund, with contributions and supportreceived from the Shire of Moora.

A very successful contribution has been made toassisting students in the Wheatbelt to articulateinto further education in the health area. Inparticular, at the Katanning and Narrogin HighSchool's, a program was implemented to helpstudents who weren't ready or able to sit thetertiary entrance examinations. Completion ofthe program gave the students a WA Certificateof Education, a Certificate IV Preparation forEntry into Enrolled Nursing and six units of theDiploma of Nursing. The parents of these studentsand the school teachers noted changes inattitudes and the achievements of all thestudents involved.

As part of its commitment to improving access totraining for people in the Wheatbelt and assupport to flexibility in the delivery of training, theInstitute invested in three new people moversand a 22-seater bus. The three people moversare based at the regional campuses.


To develop profitable commercial operations.

The Institute has been working with a client inIndia who wishes to deliver hospitality training. In2010 a contract was negotiated; an Institute staffmember visited the client in New Delhi inNovember; and work is proceeding to enablethe client to begin training in mid 2011.

As part of its strategic objective to developprofitable commercial operations, the Instituteset itself the performance target of developingand delivering five new specific, profitablecourses for 2010. This target was achieved withthe implementation of courses which included;

Firearms and poisons handling;

Truck driver training;

Business training;

Automotive skills; and

Rural merchandising.


To attract, develop and retain quality staff.

C.Y. O'Connor Institute is committed todeveloping quality staff through training anddevelopment programs. As such it encouragesstaff to participate in professional and careerdevelopment training. Currently there are elevenlecturers who are undertaking higher levelqualifications. The Institute is keen to developcurrent staff and to attract staff with higher levelqualifications in order to have the appropriatecapacity to deliver courses as a highereducation provider.

A formal "Return to Work" program for alllecturing staff has been implemented.

The Institute achieved its goal of having 100 percent of staff attend or participate in some formof professional and career development trainingover the life of the strategic plan.

As part of the commitment to celebrate successthrough recognition of outstanding staffperformance, ten staff were presented withExceptional Achievement Awards at the StaffOrientation Day in January, 2010.


To enhance the quality of learning andeducational outcomes for our students.

The development and implementation of ane-learning strategy, the formation of anE-Learning Steering Committee, together with aninvestment in electronic resources, has enabledthe Institute to offer an increasing number ofcourses via blended flexible delivery. As a result ofthis initiative and investment, all courses now havethe opportunity to develop and deliver usingelectronic means. Achievements in this area


include the availability of all of the health-relatedcourses via a range of online delivery modes.

The Department of Training and WorkforceDevelopment endorsed a capital works projectfor the Northam campus of C.Y. O'Connor Instituteto upgrade and establish new trade workshopfacilities. This investment was needed toaccommodate additional students and theincreased training delivery in the automotive andbuilding and construction academic areas. Itprovides 'state of the art' facilities andequipment.

The total cost of the project amounts to $2.9million. Construction commenced on 18 June2010 with completion expected in early 2011. Thetotal expenditure for 2010 amounted to $2.4million, with the remaining $0.5 million to beexpended in 2011.

A master plan for the development andrefurbishment of the Merredin and Mooracampuses was commenced. The aim of theexercise was to provide a 25 year vision andforward plan for the development of thesefacilities.

The Institute had a goal in 2010 to engageAboriginal students in the Recognition of PriorLearning (RPL) process, and increase the level ofparticipation by 5% over 2009 levels. There were atotal of 8 indigenous students in the RPL process in2009. This generated 220 SCH (single units only).2010 had fifteen Indigenous students in the RPLprogram generating 1,414 SCH.

A Royalties for Regions application was successfulin securing $597,000 to support the construction ofstage one of the new campus for Narrogin. Atpresent the Narrogin campus occupies three sitesin the town and the aim is to develop acompletely new, single-site campus for Narrogin.The Institute is working closely with the Town ofNarrogin and the Department of Training andWorkforce Development. A further application forRoyalties for Regions funding was submitted inDecember for $37.5 million to compliment theinitial funding to construct a new campus atNarrogin.


To demonstrate good governance and publicsector improvement.

As part of meeting the ongoing quality indicatorrequirements of the Australian Quality TrainingFramework (AQTF) 2010, the Institute providedthe Training Accreditation Council withcompetency completion data in July 2010.learner satisfaction and employer satisfactionquality indicator surveys were also conducted in2010 with satisfaction results of 85% and 75%respectively. The 2010 Student Satisfaction Surveyrevealed that overall student satisfaction at theInstitute remains high, with 92.4% indicatingeither satisfied or very satisfied.

Internal audits were conducted throughout theyear in nine areas of the Institute's business andtraining systems as they relate to the AQTF 2010.Ongoing maintenance of the Institute qualitysystem policies, procedures and forms continuedwith some 90 additions and amendmentsoccurring during 2010. New logos, headers andfooters were included in all controlleddocuments to reflect the name Institute'schange.

Recognising the importance of the need tocontinuously improve the documentationsupporting and required by the AQTF, theInstitute established a Teaching and LearningSection to build appreciation for and monitor thiscontinuous improvement. As a result of therestructure, a General Manager position wasestablished with portfolio responsibility forteaching and open learning.

A formal recycling process for all paper andcardboard was established at the Northamcampus as an element of the Institute'scommittment to environmental sustainability.


KEY PERFORMANCE INDICATORS

For the year ended 31 December, 2010

CERTIFICATION

We hereby certify that the Key Performance Indicators are based on proper records, are relevant andappropriate for assisting users to assess the performance of C.Y. O'Connor Institute and fairly represent theperformance of the Institute for the financial year ended 31 December, 2010.

Eileen O'Connell



Managing Director




The desired outcome for the Institute's KeyPerformance Indicators is to ensure the provision ofvocational education and training services thatmeet community and industry training needs.

The Key Performance Indicators measure theeffectiveness and efficiency of the Institute. Thereare four Effectiveness Indicators and one EfficiencyIndicator. The indicators show the extent to whichC.Y. O'Connor Institute has achieved vocationaleducation and training services, that are meetingcommunity and industry training needs.

Targets for the five Key Performance Indicators werebased upon the 2010 Delivery and PerformanceAgreement, the 2009 Managing DirectorsPerformance Assessment, the 2009 TAFE StudentSatisfaction Survey produced by Colmar Brunton,and the 2009 Student Outcomes AustralianVocational Education and Training Statisticsproduced by the National Centre for VocationalEducation Research Ltd (NCVER) in cooperationwith the Department of Education, Employment andWorkplace Relations (DEEWR). Targets werepresented and accepted at the PerformanceMonitoring and Audit Committee meeting in March2010. They were also written into the 2010 C.Y.O'Connor Institute Business Plan (section 5.4).

DESIRED OUTCOME



Key Performance Indicator 1: Overall Student Satisfaction

EFFECTIVENESS INDICATORS

To determine performance against Key Performance Indicator 1 (Overall Student Satisfaction) the Institutehas used the 2010 Student Satisfaction Survey, conducted by Patterson Market Research on behalf of theDepartment of Training and Workforce Development, Western Australia. The data presented below is takenfrom survey question number 13: "Overall, how satisfied were you with your course?" Students were requiredto rate their satisfaction on a scale of 'Very Dissatisfied' to 'Very Satisfied'. The overall student satisfactionreported is a combination of 'Very Satisfied' and 'Satisfied' students.

1,047 students were contacted, out of a sample population of 1,345 students, to complete the survey; 217successfully responded. This indicates a response rate of 20.7% for C.Y. O'Connor Institute. The surveyConfidence Interval was (+/-) 3.2% with a Standard Error of 1.67%.

100%

95%

90%

85%

80%2007 I 2008 I 2009

I

2010

CYOC Institute

Western Australia

CYOC Institute

Western Australia

2 2008 Ac I. Actual 2010 Target 2010 Actual

90.2% 93.9% 95.3% 94.0% 92.4%

86.8% 85.4% 85.6% N/A 86.7%

Source: 2010 Student Satisfaction Survey Interim College Report Overall Satisfaction, C.Y. O'ConnorInstitute, January 2011, conducted by Patterson Market Research on behalf of the Department of Trainingand Workforce Development, Western Australia.

Key Performance Indicator 2: Graduate Employment

To determine the Institute's performance against Key Performance Indicator 2 (Graduate Employment) andKey Performance Indicator 3 (Student Outcomes) the Institute has used the 2010 Student Outcomes Survey,conducted by the National Centre for Vocational Education Research Ltd. (NCVER). It is a survey of studentswho have successfully completed vocational education and training (VET) in Australia, this includesgraduates (students who have completed a qualification) and module completers (students who havecompleted part of a course, at least one unit of competency, without gaining a qualification) and have leftthe vocational education and training system.

"The survey is used to collect information about the general demographic characteristics of both graduatesand module completers as well as their fields of education, employment outcomes, occupations andindustries of employment, and satisfaction with and opinions of their training." (2010 Student OutcomesSurvey, C.Y. O'Connor Institute, December 2010, funded by DEEWR, prepared for NCVER).

Due to a low number of responses from module completers, the data provided below is for graduates only. Atotal of 396 graduates where contacted to complete the survey, out of a sample population of 2,120. A totalof 277 graduates successfully responded. The graduate response rate for C.Y. O'Connor Institute was


calculated to be 50.4%. The Confidence Intervals, with a 95% level of confidence, were calculated asfollows: Employed (+/-) 10%; Unemployed (+/-) 3.6%; Not in the Labour Force (+/-) 9.6%.

The data used below comes from Chapter 1: Summary of Graduate Outcomes, Employment and furtherstudy outcomes. Students have indicated whether they were employed, unemployed or not in the labourforce, after completing vocational education and training at C.Y. O'Connor Institute.

GRADUATES EMPLOYED

85

GRADUATES UNEMPLOYED

15

10

5

80

75

11111.- 111 Alai70I I

2006 2008 2009I

02006

I I

2008 2009

GRADUATES NOT IN THE LABOUR FORCE

20

1

15

5

0I

2006

1 -=_

2008I

2009I

CYOC Institute

Western Australia

Australia

I 2006 Actual 2008 Actual Mk large

83.8% 79.3% 77.2% N/A

83.0% 78.0% 79.0% N/A

80.2% 77.1% 76.5% N/A

4.1% 6.2% 3.7%(1) N/A

6.2% 10.1% 8.8% N/A

9.2% 11.3% 12.4% N/A

I11.9% 14.3% 18.9V) N/A

10.6% 11.8% 11.7% N/A

10.2% 11.1% 10.8% N/A

Source: 2010 Student Outcomes Survey, C.Y. O'Connor Institute, December 2010, funded by DEEWR,prepared for NCVER.

Notes:

(1) The figure has a relative standard error greater than 25% and therefore should be used with caution(2) The 2010 Student Outcomes Survey was prepared in 2010 based on students who graduated in 2009.


Key Performance Indicator 3: Student Outcomes Achievement of Main Reason forStudying

This Indicator also uses the 2010 Student Outcomes Survey to determine performance again the KeyPerformance Indicator. The data comes from Chapter 1: Summary of Graduate Outcomes, Satisfactionoutcomes. The students were asked to identify whether they "fully or partly achieved main reason for doingthe training".

As stated above, a total of 396 graduates where contacted to complete the survey, out of a samplepopulation of 2,120. A total of 277 graduates successfully responded. The graduate response rate for C.Y.O'Connor Institute was calculated to be 50.4%. The Confidence Interval for this question is (+/-) 4.6%, with a95% level of confidence.

95

90

85

802006 2008 2009

1

CYOC Institute

Western Australia

Australia

2008 Actual 2009 Actual 0)

CYOC Institu 95.0% 92.7% 93.7% N/A

Western Austra 87.0% 87.1% 86.7% N/A

Australia 86.4% 85.9% 85.1% N/A

Source: 2010 Student Outcomes Survey, C.Y. O'Connor Institute, December 2010, funded by DEEWR,prepared for NCVER.

Notes:

(1) The 2010 Student Outcomes Survey was prepared in 2010 based on student who graduated in 2009.

Key Performance Indicator 4: Achievement of Institute Profile

580000

560000

540000

520000

500000

480000

460000

4400002006 2007 2008

Planned SCH

Achieved SCH

2009 2010i

The achievement of Institute Profile is aperformance measure that demonstrates theInstitute's effectiveness in meeting plannedvocational education and training servicesto meet community and industry needs.Institute Profile is identified in the Delivery andPerformance Agreement (DPA) entered intowith the Department of Training andWorkforce Development (DTWD) each year.

Achievement of Institute Profile comparesachieved Student Curriculum Hours (SCH) toplanned Student Curriculum Hours. In 2010the Institute and DTWD agreed on a Profiletarget of 569,500 SCH, the Institute achieved96.95% of this target.


Planned SCH Achieved SCH AL % Achieved2006 546,405 496,214 90.81%

2007 500,145 504,754 100.92%

2008 562,745 542,554 96.41%

2009 561,404 561,433 100.01%

2010 569,500 552,104 96.95%

Source: Verified Institute Census Data 2011

Industry Groups

The following table provides details of the distribution of the Institute's Profile delivery, by Student CurriculumHours, in Industry Groups specified by the Department of Training and Workforce Development.

Industry Gro

01A Recreation Sportsand Entertainment

SCH Delivered2007

32,244

SCH Delivered2008

21,627

111.11111M1M11111.10,149 12,500 14,620 -2,120

01B Visual andPerforming Arts

22,768 22,203 25,470 22,060 30,405 -8,345

01C Design 0 0 0 0 0 0

02A Automotive 30,785 31,614 18,128 35,100 34,415 685

03A Building andConstruction

25,158 17,432 51,257 59,950 51,626 8,324

03B Surveying andBuilding

7,150 5,540 3,220 4,250 1,200 3,050

04A Community ServiceWorkers

36,359 51,753 56,438 48,650 44,640 4,010

04B Education andChildcare

50,177 51,087 57,724 61,500 50,375 11,125

04C Health 11,910 44,195 38,821 54,100 64,560 -10,460

04D Library Workers 0 0 0 10 0 0

05A Finance InsuranceProperty ServiceWorkers

605 1,170 0 0 0 0

06A Food Trades andProcessing

0 0I

0 0 0 0

07A Clothing Footwearand Soft Furnishings

2,565 10,790 4,130 2,000 1,790 210

07B FurnitureManufacture

5,392 8,922 10,527 7,700 6,885 815

08A Communications 0 0 0 0 0 0

08B Printing andPublishing

0 0 0 0 0 0

09A Engineering andDrafting

0 0 0 1,200 1,686 -486

09B Metal and Mining 22,083 20,282 26,472 20,640 19,697 943

10A Animal Care 0 0 0 0 0 0

10B Forestry, Farming andLandcare

77,801 79,507 81,772 56,350 60,654 -4,304

10C Fishing 0 0 0 0 0 0

10D Horticulture 13,991 10,511 13,362 10,800 10,442 358


11A ProcessManufacturing

0 0 0 0 0 0

12A Personal Service 0 715 950 0 0 0

12B Retail 10,443 6,212 3,274 4,100 5,880 -1,780

13A Cooking 1,826 1,667 488 0 0 0

13B Hospitality 1,882 1,339 1,187 2,900 2,676 224

13C Tourism 4,255 230 470 0 0 0

13D Travel Agents 0 0 0 0 0 0

14A Transport Trades,Storage andAssociated

5,604 5,200 10,080 10,000 9,680 320

15A Electrical andElectronicEngineering

0 0 0 0 0 0

15B Electrical Trades 0 0 0 1,000 0 1,000

16A Accounting andOther BusinessServices

12,175 2,390 6,230 9,100 6,990 2,110

16B Management 13,740 17,910 24,706 35,700Immi

37,003 -1,303

16C Office and Clerical 66,135 69,715 64,505 63,100 54,995 8,105

17A Computing 10,992 5,084 11,979 7,000 3,980 3,020

18A Science andTechnical Workers

744 1,000 546 0 0 0

19A ACE 0 0 0 0 0 0

19B Adult Literacy/ESL 31,070 14,685 24,655 32,800 27,280 5,520

19C Languages 0 0 0 0 0 0

19D Miscellaneous 0 0 0 0 0 0

19E Targeted Access andParticipation Courses

6,900 39,774 14,205 7,000 10,625 -3,625

TOTAL SCH 504,754 542,554 560,745 569,500 552,104 17,396

Source: 2010 Delivery and Performance Agreement for C.Y. O'Connor Institute, Addendum Number 3, page 8.

Notes:

(1) While the Institute Profile target was never changed in 2010, the Profile target for Industry Groups was altered inAddendum's 1, 2 and 3, to meet the vocational education and training needs of the community and industry. Theinformation used above comes from the 3rd Addendum.

Non-Profile Delivery

120,000

100,000

80,000

60,000

40,000

20,000

0

I I2007

I I I

2008 2009 2010

Non-Profile Delivery

As stated previously, Profile Delivery refers to the SCHfunded through the DPA made with the Departmentof Training and Workforce Development. Non-ProfileDelivery refers to all courses not funded through theDPA. To meet community and industry needs theInstitute delivers a range of programs not incorporatedwithin the Institute Profile. This reduces the Institutedependency on profile funding from the StateGovernment and increases the courses available forcommunity and industry in the region. The programsinclude fee for service and lifestyle courses. Non-Profile (Student Curriculum Hours) Delivery is presentedbelow, with a percentage of training delivered by theInstitute in 2010.


p

102,459 73,311 56,352 65,000(2) 74,5160)

16.87% 11.9% 8.7% 10.24% 11.89%

Source: Verified College Census Data 2011

Notes:

(1) The final Non-Profile Figure includes SCH for Non-SAW State Funded (Auspicing in Schools 27,244 SCH), Fee forService (Commercial 24,984), Special Projects (Tender 75,623) and Competitively Allocated Training (CAT6,665) (2) The Non-Profile target of 65,000 SCH was established as part of the 2010 Institute Business Planning process.

KEY PERFORMANCE INDICATORS EFFICIENCY INDICATOR

Key Performance Indicator 5: Cost per Student Curriculum Hour (SCH)

Cost per SCH delivered is a performance measure that demonstrated the Institute's efficiency in providingvocational education and training services to meet community and industry needs.

The Cost per SCH measure shows the overall unit cost per SCH delivered through both Profile and Non-Profileactivities, based on the Total Cost of Services, as detailed in the 2010 Financial Statements.

The Cost per SCH delivered in 2010 was $24.10.

$25.00

$24.00

$23.00

$22.00

$21.00

$20.00 rI

2007 2008I

2009

I2010

Total Cost per SCH Delivered

Eh 2008 2009 2010 Target') 2010

EVI Cost of ServicM $13,016,577 $13,430,466 $14,631,132 $13,709,117 $15,101,8880)

total SCH Deliverell. 607,213 615,865 617,785 634,500 626,620(2)

otal Cost per SCH $21.44 $21.81 $23.68 $21.61 $24.10Delivered

Notes:

(1) The 2010 Cost per SCH was based upon the Section 40 estimate submission to the Minister for Energy, Trainingand Work force Development, IndigenousAffairs. (2) Total SCH isderived from Achieved Profile of 552, 7 04SCH and Non- ProfileDelivery of 74,576SCH (total 626,620 SCH). (3) Total Cost per SCH excludes BTF expenditure amounting to $1,466,700 andinvestment in the order of $300,000 on Higher Education commitment which, combined, inflated the Total Cost per SCH.


The significant issues and trends outlined here are relevant to both C.Y. O'Connor Institute and thevocational education and training sector.

The decision by C.Y. O'Connor Institute to enter the higher education sector, and thereby become adual-sector institution, aligns with the Australian government policy trend towards a new tertiaryeducation landscape. To complement this repositioning, the Institute undertook an organisationalrestructure which commenced implementation late in 2010. The restructure is to ensure appropriatesupport for an expansion of the Institute from 2011 onwards. During 2010 the Institute has been increasingits staff numbers and providing staff with professional development opportunities to better service theWheatbelt region with vocational education and training in 2011 and beyond.

In order to support and enhance the learning opportunities for students, flexible pathways betweenschools, vocational education and training, higher education and employers will be investigated,developed and implemented. The decision was taken late in the year to commission a consultancy todevelop a Tertiary Education Plan for the Institute.

Regional and state development is underpinned by the availability of a skilled workforce. By closelymonitoring the economic situation and working collaboratively with industry, business and government,C.Y. O'Connor Institute can anticipate and respond to workforce requirements.

The Training Together Working Together: Aboriginal Workforce Development Strategy and the openingof the new Aboriginal Workforce Development Centre in Perth have emphasised the need to work incollaboration with Aboriginal communities and industry to reduce the barriers to participation in trainingand in the workforce, and increase the number of Aboriginal people participating in training andsubsequent employment.


STRATEGIC PRIORITIES FOR 2011

Strategic Priorities for 2011

A new strategic plan was drafted for C.Y. O'ConnorInstitute in 2010 to reflect changing contextualcircumstances and identify strategic drivers that willhelp the organisation grow and thrive in the future.The plan was submitted to the Department forWorkforce Development in October 2010 andapproved by the Minister in November 2010. The keyaspects from the new strategic plan are shownbelow:

Vision

C.Y. O'Connor Institute is recognised as the leadingprovider of tertiary education services thatcontribute to regional and state development.

Mission

Strategic Objective 2

Increase access to education and training servicesby providing open learning delivery models forregional clients and beyond.


Expand pathways to employment by providinglearning and educational outcomes as a dualsector institution.


Enhance employment outcomes for Aboriginalpeople by adopting innovative and supportiveengagement and training delivery strategies.


Our mission is to provide education and trainingservices to enable our students in the Wheatbeltand beyond to achieve their potential.

Drivers

Expand the delivery of training and educationservices by adopting a 'demand led' businessmodel.


Regionalisation; Invest in staff to reposition the Institute as a leadingregional provider of tertiary education through open

Open Learning; learning.Tertiary Education;

Indigenous Training; Strategic Objective 7

Demand Led; Demonstrating good governance and public sectorInstitute Workforce Development; and improvement.

Governance.

The drivers have led to the development of thefollowing seven Strategic Objectives:

Strategic Priorities 2011 2013


Provide education and training services thatcontribute to regional outcomes and support statedevelopment.


LEGISLATION IMPACTINGON THE INSTITUTE

State Legislation

Australian Crime Commission (Western Australia)Act 2004;

Corporations (WA) Act 1990;

Criminal Code;

Disability Services Act 1993;

Education Service Providers (Full fee OverseasStudents) Registration Act 1991;

Electoral Act 1907;

Electronic Transactions Act 2003;

Equal Opportunity Act 1984;

Evidence Act 1906;

Fair Trading Act 1987;

Fair Trading Act 2010;

Financial Management Act 2006;

Freedom of Information Act 1992;

Government Financial Responsibility Act 2000;

Industrial Relations Act 1979;

Interpretation Act 1984;

Labour Relations Reform Act 2002;

Library Board of WA Act 1951;

Limitation Act 1935;

Limitation Act 2005;

Minimum Conditions of Employment Act 1993;

Occupational Safety and Health Act 1984;

Occupiers Liability Act 1985;

Parliamentary Commissioner Act 1971;

Public and Bank Holidays Act 1972;

Public Interest Disclosure Act 2003;

Public Sector Management Act 1994;

Salaries and Allowances Act 1975;

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 (Common Law

Proceedings) Act 2004;

Workers Compensation and Injury Management(Acts of Terrorism) Act 2001; and

Workers Compensation and Injury ManagementAct 1981.

Federal Legislation

A New Tax System (Goods and Services Tax Act)1999;

Aboriginal and Torres Strait Islander Act 2005;

Aboriginal and Torres Strait Islander CommissionAmendment Act 2005;

Age Discrimination Act 2004;

Archives Act 1983;

Copyright Act 1968;

Copyright Amendment (Digital Agenda) Act2000;

Cybercrime Act 2001;

Disability Discrimination Act 1992;

Freedom of Information Act 1982;

Fringe Benefits Tax Act 1986;

Human Rights and Equal OpportunityCommission Act (Transition Provisions andConsequential Amendments) 1986;

Income Tax Act 1986;

Indigenous Education (Targeted Assistance) Act2000;

Industrial Relations and other LegislationAmendment Act 1996;

Privacy Act 1988;

Racial Discrimination Act 1975;

Sex Discrimination Act 1984;

Sidling Australia's Workforce Act 2005;

State Grants (Technical Training FeesReimbursement) Act 1974;

Superannuation Guarantee (Administration) Act1992;

Superannuation Guarantee Charge Act 1992;

Trade Practices Act 1975; and

Workplace Relations and other LegislationAmendment Act 1996.


DISCLOSURES AND COMPLIANCE

No Ministerial Directives were issued to the Institute in 2010.


MINISTERIAL DIRECTIVES

STAFFING OVERVIEW

C.Y. O'Connor Institute employs staff in lecturing and non-lecturing roles including administration andsupport. The average number of full time, part time and casual staff is detailed below:

Eli-INMI-MP'

160.25

131.16

Professional ana Career Development (PACD)

During 2010, the equivalent of 195 Staff participated in a total of 115 different PACD activities. A number oftargeted PACD activities were conducted throughout the year. These included:

Whole of Institute Orientation Day;Lecturer's Orientation Day;Improving Workplace Culture;Training Forum 2010; and

Registered Training Organisation Forum

The Institute exceeded budget by approximately $37,000 in expenditure to support professionaldevelopment activities in 2010.

Accountable and Ethical Decision Making Framework (AEDM)

In February 2010 the Institute rolled our six units for the Accountable and Ethical Decision Making Frameworkas an online learning program to all Institute staff.



Public Interest Disclosure Statement

GOVERNANCE DISCLOSURES

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

Facilitate the disclosure of public information;

Provide protection for those who make disclosures; and

Provide protection for those who are the subject of disclosure.

The policy details internal procedures relating to the Institute's obligations under the Act, and the protectionfor persons who make disclosures under the Act. This Public Interest Disclosure function is delegated to theoffice of the Director, People and Performance.

No Public Interest Disclosure requests were reported during 2010.

Contracts with Senior Officers

At the date of reporting, other than normal contracts of employment of service, no Senior Officers or firms ofwhich Senior Officers are members, or entities in which Senior Officers have substantial interests, had anyinterests in existing or proposed contracts with C.Y. O'Connor Institute.

Disclosure of Gifts Statement

No gifts were received in 2010.


DISCLOSURES AND COMPLIANCE ADVERTISING

Section 175ZE of the Electoral Act 1907, requires that the Institute reports on expenditure incurred during thefinancial year in relation to advertising agencies, market research organisations, polling organisations, directmail organisations and media advertising organisations. The following information is provided in support ofthis requirement:

The total expenditure for 2010 was $66,073.77

Expenditure was incurred as follows:

Category Name of Organisation /s Amount of ExpenditureAdvertising Agencies Ad Corp $25,292.77

Market Research Organisations Nil

Polling Organisations Nil

Direct Mail Organisations Nil

Media Advertising Organisations Media Decisions $40,781.00

Advertising and Sponsorship

The Institute was successful in securing sponsorship for a number of its publications and awards in 2010.Details of the secured sponsorship are outlined as follows:

The Course Handbook Publication

Two companies provided co-sponsorship in the 2010 Course Handbook, namely the Wheatbelt NaturalResource Management and The Regional Men's Health Initiative.

Graduation Sponsorship

Northam Boulevard Student of the Year Award

WA Farmers Regional Business Student of the Year Award

Directions Regional Services and Lifestyle Student of the Year Award

Shire of Northam Aboriginal Student of the Year, Trainee of the Year Award

Northam Toyota Apprentice of the Year Award

Lin ley Valley Pork Encouragement Award

Avon Valley Advocate Most Improved Student Award

Valley Ford/Northam Hyundai James Dawson Award

Cooperative Bulk Handling (CBH Group) Regional Trades Student of the Year Award


VET in Schools Publication Sponsorship

Hutton and Northey;

Wheatbelt Natural Resource Management;

International Rural Exchange;

Construction Training Fund;

OMDWA;

CCI Apprenticeship Solutions;

RACWA; and

Central Institute of Technology.

Major Publications in 2010

C.Y. O'Connor Courier (Staff/Student Newsletter);

Course Handbook;

Strategic Plan 2011 2013;

Indigenous Skills Development Plan 2010 2012;

Best Practice Case Study Booklet;

VET in School Book;

Course Brochures;

2009 Annual Report; and

Student Diary 2010.



In 2006, C.Y. O'Connor Institute developed itsDisability Services Plan, which was lodged with theDisability Services Commission. In July 2010, theDisability Services Plan was superseded by theDisability Action and Inclusion Plan (DAIP). Thefollowing information outlines progress which wascarried out in 2010 against both Plans.

In developing the DAIP, the Institute consulted withinternal and external stakeholders. This includedstaff, students, persons with a disability andcommunity groups. Surveys of a variety of relevantgroups were also conducted. The DAIP was widelyadvertised across the Wheatbelt for publiccomment.

The following presents the six outcome statements inthe DIAP, together with some of its achievements in2010.

Outcome

People with disabilities have the same opportunitiesas other people to access the services of, and anyevents organised by, C.Y. O'Connor Institute.

Continued to provide equal access andinclusion principles to services and eventsorganised through measures such asdevelopment and implementation of eventaccess checklists;

Continued to research and procure necessaryassistive technology and equipment to meetstudent needs;

The student graduation ceremony included theJames Dawson Memorial Award, an awarddeveloped to recognise the achievements ofstudents with a disability;

Developed the contractors and agentsinformation brochure to ensure that all staff,agents and contractors are aware of theInstitute's DAIP and the relevant requirements ofthe Disability Services Act; and

Delivered a disability awareness trainingprogram to customer service officers and in classassistants.

Outcome 2:

People with disabilities have the same opportunitiesas other people to access the buildings and otherfacilities of C.Y. O'Connor Institute.

DISABILITY ACCESS ANDINCLUSION PLAN OUTCOMES

Identified issues through universal access auditsand consultation processes and recorded themfor action and resolution;

New signage was compliant with wayfaring andaccessibility guidelines for students with adisability; and

Ensured that premises and other infrastructurerelated to transport are accessible to peoplewith a disability.

Outcome 3:

People with disabilities can access information fromC.Y. O'Connor Institute as readily as other people areable to access it.

Continued to provide information in clear,concise language and in alternative formats;

Continued to ensure that support staff wereavailable to assist;

Identified the ongoing requirement formandatory awareness training and aprofessional development for all Institute staff;

Developed and implemented an accessibleinformation program; and

Continued to review and research appropriateand necessary equipment and resources topromote accessibility and participation such as:audio loops and personal receivers.

Outcome 4:

People with disabilities receive the same level andquality of service from staff at C.Y. O'Connor Instituteas other people receive.

Provided for continuous review of accessible andinclusive teaching, learning and assessmentstrategies in all industry areas;

Provided professional development and trainingin disability awareness for support workers; and

Provided customer service disability awarenesstraining across all campuses.


Outcome 5:

People with disabilities have the same opportunitiesas other people to make complaints to C.Y.O'Connor Institute.

Identified the need to streamline administrativeprocesses for students with disability; and

Ensured that all customer complaint forms andinformation are available in alternative formats.

Outcome 6:

People with disabilities have the same opportunitiesas other people to participate in any publicconsultation carried out by C.Y. O'Connor Institute.

Identified the importance of establishing a DAIPSteering Committee, with active participation bystudents with disability;

Continued to develop linkages and createpathways into the community in order to seek abroad range of views and invite consultation;

Created dedicated positions on the StudentGuild to ensure that students with disabilitieshave an opportunity to participate in decisionmaking processes and public consultations; and

Ensured that all public consultations, includingthe DAIP consultation, met minimumbenchmarks for accessible consultationprocesses. This included providing material in avariety of formats and advertising theconsultation processes in a range of media suchas radio, the website and the print media.

The Institute continues to commit to ensuring that allpeople are able to access the full range ofresources, services and facilities.



C.Y. O'Connor Institute has complied with the PublicSector Standards in Human Resource Managementfor recruitment, selection and appointment, transfer,secondment, performance management,redeployment, termination, discipline, temporarydeployment (acting) and grievance resolution aswell as with the Western Australian Public SectorCode of Ethics and the Institute's Code of Conduct.

Procedures are in place to ensure compliance andappropriate internal assessments have beenconducted to meet legislative requirements. During2010, there were no breaches against any of thePublic Sector Standards.

The Institute has rolled out six units for theAccountable and Ethical Decision MakingFramework as an online learning program to allInstitute staff.

Record Keeping Plan

A common Record Keeping Plan has beenadopted across vocational education and trainingorganisations of the public sector. This plan sets outstrategies for uniform compliance with the StateRecords Act (2000). The Institute works closely withthe other publicly funded training service providersto review and improve record keeping processesand procedures.

The training service providers are working to atimetable to roll out an electronic version of TotalRecords and Information Management (TRIM) in2011. The Department of Training and WorkforceDevelopment are enabling the introduction ofelectronic TRIM through the acquisition of softwarelicences and funding the cost to upgrade existingnon-electronic versions of TRIM that pre-dateversion 6.2.5. This work is necessary for interfacingwith the electronic version. The process ofupgrading all Institutes has taken longer thanoriginally anticipated.

During 2010 the Institute focused on preparing itsprocedures and documents for conversion toelectronic TRIM. Once the software is available,significant activity will follow, as the Instituteimplements and embeds electronic TRIM and trainsits staff in its use.

STANDARDS AND ETHICS

Occupational Health, Safety and InjuryManagement

C.Y. O'Connor Institute complies with theOccupational Safety and Health Act (1984) and theWorkers Compensation and Injury ManagementAct (1981). The Institute has a comprehensiveprogram for monitoring skills development, staffparticipation and reporting to ensure requirementsof the Acts are met.

The Institute has a well established OccupationalSafety and Health (OSH) committee. It overseesstrategies and operational matters relating to OSH.The Committee is also the vehicle for consultationand communication of information.

The major highlights achieved during 2010 are asfollows:

An OSH review of the Institute's safetymanagement systems was undertaken. It wasbased on the requirements of the Worksafe PlanAssessment Tool;

An OSH Management Plan (2010-2013) wasdeveloped and implemented; and

The position of OSH Coordinator was created tooversee and manage OSH activities within theInstitute.


Indicator Target

Number of fatalitiesLost time injury/disease (LTI/D) incidence rate 0 or 10 % reduction on previous year 0

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

Percentage of injured workers returned towork within 28 weeks

Actual percentage result to be reported 100%

Percentage of managers trained inoccupational safety, health and injurymanagement responsibilities

Greater than or equal to 50% 85%

Risk Management

The Institute has successfully embedded risk management principles into the decision making ofmanagement. It has established a risk management framework to ensure compliance with TreasuryInstruction 825, consistent with Australian Standards 4360:1999. During 2010 the Institute reviewed andimplemented its risk management database.


FINANCIAL STATEMENTS CERTIFICATION

The accompanying Financial Statements of C.Y. O'Connor Institute have been prepared in compliance withthe provisions of the Financial Management Act 2006, from proper accounts and records, to present fairlythe financial transactions for the financial year ending 31 December 2010 and the financial position as at 31December 2010.

At the date of signing, we are not aware of any circumstances which would render the particulars includedin the Financial Statements misleading or inaccurate.

Eileen O'Connell



Managing Director


Tony Perkins

Chief Finance Officer



FINANCIAL STATEMENTS INDEPENDANT AUDIT OPTION

INDEPENDENT AUDITOR'S REPORT

To the Parliament of Western Australia

C.Y. O'CONNOR INSTITUTE

Report on the Financial StatementsI have audited the accounts and financial statements of the C.Y. O'Connor Institute.

Auditor General

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 ofCash Flows for the year then ended, and Notes comprising a summary of significant accountingpolicies and other explanatory information.

Governing Council's Responsibility for the Financial StatementsThe Governing Council is responsible for keeping proper accounts, and the preparation and fairpresentation of the financial statements in accordance with Australian Accounting Standardsand the Treasurer's Instructions, and for such internal control as the Governing Councildetermines is necessary to enable the preparation of financial statements that are free frommaterial misstatement, whether due to fraud or error.

Auditor's ResponsibilityAs required by the Auditor General Act 2006, my responsibility is to express an opinion on thefinancial statements based on my audit. The audit was conducted in accordance with AustralianAuditing Standards. Those Standards require compliance with relevant ethical requirementsrelating to audit engagements and that the audit be planned and performed to obtain reasonableassurance about whether the financial statements are free from material misstatement.

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

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

OpinionIn my opinion, the financial statements are based on proper accounts and present fairly, in allmaterial respects, the financial position of the C.Y. O'Connor Institute at 31 December 2010and its financial performance and cash flows for the year then ended. They are in accordancewith Australian Accounting Standards and the Treasurer's Instructions.


C.Y. O'Connor Institute

Report on ControlsI have audited the controls exercised by the C.Y. O'Connor Institute. The Governing Council isresponsible for ensuring that adequate control is maintained over the receipt, expenditure andinvestment of money, the acquisition and disposal of public and other property, and theincurring of liabilities in accordance with the Financial Management Act 2006 and theTreasurer's Instructions, and other relevant written law.

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

OpinionIn my opinion, the controls exercised by the C.Y. O'Connor Institute are sufficiently adequateto provide reasonable assurance that the receipt, expenditure and investment of money, theacquisition and disposal of property, and the incurring of liabilities have been in accordancewith legislative provisions.

Report on the Key Performance IndicatorsI have audited the key performance indicators of the C.Y. O'Connor Institute. The GoverningCouncil is responsible for the preparation and fair presentation of the key performanceindicators in accordance with the Financial Management Act 2006 and the Treasurer'sInstructions.

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

OpinionIn my opinion, the key performance indicators of the C.Y. O'Connor Institute are relevant andappropriate to assist users to assess the Institute's performance and fairly represent indicatedperformance for the year ended 31 December 2010.

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

COLIN MURPHYAUDITOR GENERAL18 March 2011



C.Y.O'CONNORINSTITUTEEDUCATION I TRAINING

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10589

C.Y. O'Connor InstituteSTATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 31 DECEMBER 2010

2010 2009

COST OF SERVICESExpensesEmployee benefits expense

Supplies and services

Depreciation expense

Finance costs

Cost of sales

Other expenses

Total cost of services

Notes

6

7

8

9

14

10

Income

Revenue

Fee for service 11

Student fees and charges 12

Ancillary trading 15

Sales 14

Commonwealth grants and contributions 15

Interest revenue 16

Other revenue 17

Total revenue

Gains

Gain on disposal of non-current assets

Total gains

Total income other than income from State Government

NET COST OF SERVICES

INCOME FROM STATE GOVERNMENTService appropriation

Resources received free of charge

Total income from State Government

SURPLUS/(DEFICIT) FOR THE PERIOD

OTHER COMPREHENSIVE INCOMEChanges in asset revaluation surplus

Total other comprehensive income

TOTAL COMPREHENSIVE DEFICIT FOR THE PERIOD

18

19

$

10,800,685

4,055,157

562,599

163,635

1,286,512

16,868,588

198,594

918,036

427

232,582

347,783

214,726

233,544

2,145,693

54,199

54,199

2,199,892

(14,668,696)

12,513,380

174,731

12,688,112

(1,980,584)

(459,350)

(459,350)

(2,439,934)

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

9,788,790

3,156,495

638,796

20,283

130,632

896,136

14,631,133

274,167

927,539

1,072

196,849

1,322,212

129,438

261,308

3,112,585

12,334

12,334

3,124,919

(11,506,213)

11,727,141

613,225

12,340,366

834,153

(1,124,650)

(1,124,650)

(290,497)

Financial Statements year ended 31 December 2010 150

C.Y. O'Connor InstituteSTATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER 2010 2010 111=1 2009

ASSETS

Current AssetsCash and cash equivalents

Restricted cash and cash equivalents

Inventories

Receivables

Other current assets

Total Current Assets

Non-Current AssetsRestricted cash and cash equivalents

Property, plant and equipment

Total Non-Current Assets

TOTAL ASSETS

Notes

30

20

21

22

23

20

24

LIABILITIESCurrent LiabilitiesPayables 26

Provisions 27

Other current liabilities 28

Total Current Liabilities

Non-Current LiabilitiesProvisions

Total Non-Current Liabilities

TOTAL LIABILITIES

NET ASSETS

EQUITYContributed equity

Reserves

Accumulated surplus

TOTAL EQUITY

27

29

3,748,708

47,983

47,108

187,457

79,889

4,111,145

252,640

12,052,783

12,305,423

16,416,568

391,106

1,835,721

215,247

2,442,074

462,391

462,391

2,904,465

13,512,103

176,634

5,278,228

8,057,242

13,512,103

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

3,778,737

1,306,967

42,306

181,065

85,384

5,394,459

189,894

12,493,003

12,682,897

18,077,356

331,367

1,396,814

23,221

1,751,402

373,916

373,916

2,125,318

15,952,038

176,634

5,737,578

10,037,826

15,952,038


C.Y. O'Connor InstituteSTATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2010 2009

Notes

CASH FLOWS FROM STATE GOVERNMENT

Service appropriation Department of Training and Workforce Development

Net cash provided by State Government

Utilised as follows:

CASH FLOWS FROM OPERATING ACTIVITIES

Payments

Employee benefits

Supplies and services

Finance costs

GST payments on purchases

GST payments to taxation authority

Other payments

Receipts

Fee for service

Student fees and charges

Ancillary trading

Commonwealth grants and contributions

Interest received

GST receipts on sales

GST receipts from taxation authority

Other receipts

Net cash used in operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of non-current physical assets

Purchase of non-current physical assets

Net cash used in investing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of period

CASH AND CASH EQUIVALENTS AT END OF PERIOD

30

30

11,685,193

11,685,193

(9,540,007)

(3,874,931)

(486,121)

2,927

(1,067,713)

198,594

920,230

427

347,783

218,669

98,282

316,686

481,242

(12,383,930)

137,133

(664,663)

(527,530)

(1,226,267)

5,275,598

4,049,331

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

10,957,447

10,957,447

(8,764,785)

(2,498,892)

(10,270)

(272,662)

(84,514)

(986,689)

274,167

958,942

1,072

1,322,212

122,516

91,657

139,054

426,162

(9,282,030)

32,759

(39,577)

(6,818)

1,668,599

3,606,999

5,275,598


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31 DE

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MB

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Reserves

Accum

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Surplus / (Deficit)

Total E

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Balance at 1 January 2009

Changes in accounting policy or correction of prior period errors

Restated balance at 1 January 2009

Total com

prehensive income for the year

Transaction w

ith owners in their capacity as ow

nersC

apital appropriationsO

ther contribution by owners

Distribution to ow

nersT

otal

Balance at 31 D

ecember 2009

Balance at 1 January 2010

Total com

prehensive deficit for the year

Transaction w

ith owners in their capacity as ow

nersC

apital appropriationsO

ther contribution by owners

Distribution to ow

nersT

otal

Balance at 31 D

ecember 2010

Notes

29176,634

$

6,862,228$

9,203,67316,242,535

176,6346,862,228

9,203,67316,242,535

(1,124,650)834,153

(290,497)

176,6345,737,578

10,037,82615,952,038

176,6345,737,578

(459,350)

10,037,826

(1,980,584)

15,952,038

(2,439,934)

176,6345,278,228

8,057,24213,512,103

The Statem

ent of Changes in E

quity should be read in conjunction with the accom

panying notes.

Cr)LU

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2010

1 Australian equivalents to International Financial Reporting Standards

(a) GeneralThe Institute'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 Institute has adopted any applicable, new and revised Australian Accounting Standards from their operative dates.

(b) Early adoption of standardsThe Institute 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 yeteffective have been early adopted by the Institute 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 consistentwith 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, theFramework, Statements of Accounting Concepts and other authoritative pronouncements of the AASB as applied by the TIs. Several of these are modifiedby 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, buildingswhich 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 unlessotherwise stated.

The financial statements are presented in Australian dollars ($).

The judgements that have been made in the process of applying the Institute's accounting policies that have the most significant effect on the amountsrecognised in the financial statements are disclosed at note 3 'Judgements made by management in applying accounting policies'.

The key assumptions made concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that have a significantrisk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are disclosed at note 4 'Key sources ofestimation uncertainty'.

(c) Reporting entityThe reporting entity comprises the Institute. There are no other related bodies.

(d) Contributed equityAASB Interpretation 1038 'Contributions by Owners Made to Wholly-Owned Public Sector Entities' requires transfers, other than as a result of a restructureof administrative arrangements, in the nature of equity contributions to be designated by the Government (the owner) as contributions by owners (at the timeof, or prior to, transfer) before such transfers can be recognised as equity contributions. Capital appropriations are designated as contributionsby owners per TI 955 'Contributions by Owners Made to Wholly Owned Public Sector Entities' and have been credited directly to Contributed Equity.

Transfer of net assets to/from other agencies, other than as a result of a restructure of administrative arrangements, are designated as contributions by/distributions to owners to where the transfers are non-discretionary and non-reciprocal. See note 29 'Equity.

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

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

Sale of goodsRevenue is recognised from the sale of goods and disposal of other assets when the significant risks and rewards of ownership control transfer to thepurchaser 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 throughthe 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 Institute obtains control over the assets comprising the contributions, usually upon their rece p

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

State fundsThe funds received from the Department of Training and Workforce Development in respect of the delivery of services forming part of the DeliveryPerformance 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 Institute meets the terms of the Agreement.See note 19 'Income from State Government'.

GainsGains may be realised or unrealised and are usually recognised on a net basis. These include gainsrevaluations of non-current assets.

sing on the disposal of non-current assets and some

(I) Property, plant and equipment and infrastructureCapitalisation/Expensing of assetsItems of property, plant and equipment costing $5,000 or more are recognised as assets and the cost of utilising assets is expensed (depreciated) over theiruseful lives. Where applicable in accordance with TI 1101, the capitalisation threshold has been applied to the aggregate value of a group or network of assets

where the cost of individual item may be below the threshold but collectively the cost of the items in the group or network exceeds the threshold. Items of property,plant and equipment and infrastructure costing less than $5,000 are immediately expensed direct to the Statement of Comprehensive Income (other 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 are initially recognised at cost. For items of property, plant and equipment and infrastructureacquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition.

Subsequent measurementSubsequent 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 accumulateddepreciation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount.

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

Independent valuations of land and buildings are provided annually by the Western Australian Land Information Authority (Landgate) and recognised withsufficient regularity to ensure that the carrying amount does not differ materially from the asset's fair value at the 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 24 Property, plant and equipment' for further information on revaluations.

Derecognition

Upon disposal or derecognition of an item of property, plant and equipment, any revaluation surplus relating to that asset is retained in theasset 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 24 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.

Land is not depreciated. Depreciation on other assets is calculated on the straight line method over ts useful life, using rates which are reviewed annually.Estimated useful lives for each class of depreciable asset are:

Buildings 40 yearsMotor vehicles, caravans and trailers 2 to 12 yearsPlant, furniture and general equipment 2 to 15 yearsComputing, communications and software (a) 2 to 4 yearsMarine craft 10 years

Works of art controlled by the Institute are classified as property, plant and equipment which are anticipated to have very long and indefinite useful lives.Their service potential has not, in any material sense, been consumed during the reporting period and so no depreciation has been recognised.

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

(g) Impairment of assetsProperty, plant and equipment, infrastructure and intangible assets are tested for any indication of impairment at the end of each reporting period. Where there isan indication of impairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is considered impairedand is written down to the recoverable amount and an impairment loss is recognised. As the Institute is a not-for-profit entity, unless an asset has been 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 expirationof 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 therecoverable amount is measured. Surplus assets at cost are tested for indications of impairment at the end of each reporting period.

See note 25 'Impairment of assets' for the outcome of impairment reviews and testing. See note 2(1) Receivables' and note 22 Receivables' forimpairment of receivables.

(h) Financial instrumentsIn addition to cash, the Institute has two categories of financial instruments:

Receivables; andFinancial liabilities measured at amortised cost.

These have been disaggregated into the following classes:

Financial assetscash and cash equivalents (including restricted cash and cash equivalents)receivables

Financial liabilitiespayables

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

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

(i) 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 hand

and short-term deposits with original maturities of three months or less that are readily convertible to a known amount of cash and which are subject toinsignificant risk of changes in value, and bank overdrafts.

(j) Accrued salariesThe accrued salaries suspense account (see note 20 Restricted cash and cash equivalents') consists of amounts paid annually into a suspense accountover 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 26 'Payables') represent the amount due to staff but unpaid at the end of the financial year, as the end of the last pay periodfor that financial year does not coincide with the end of the financial year. Accrued salaries are settled within a fortnight of the financial year end. The Institute

considers the carrying amount of accrued salaries to be equivalent to its net fair value.

(k) InventoriesInventories are measured at the lower of cost and net realisable value. Costs are assigned by the method most appropriate to each particular class ofinventory, 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 21 'Inventories'.

(I) ReceivablesReceivables are recognised and carried at original invoice amount less an allowance for any uncollectible amounts ( impairment). The collectability ofreceivables is reviewed on an ongoing basis and any receivables identified as uncollectible are written off against the allowance account. The provision foruncollectible amounts (doubtful debts) is raised when there is objective evidence that the Institute will not be able to collect the debts. The carrying amount is

equivalent to fair value as it is due for settlement within 30 days. See note 2(h) 'Financial instruments' and note 22 'Receivables'.

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

(m) PayablesPayables are recognised at the amounts payable when the Institute becomes obliged to make future payments as a result of a purchase of assets orservices. The carrying amount is equivalent to fair value, as they are generally settled within 30 days. See note 2( h) 'Financial instruments' and note 26

'Payables'.

(n) 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 27 Trovisions'.

(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 leave


The 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 liabilities are 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 expectedto 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 asemployer superannuation contributions, as well as the experience of employee departures and periods of service. The expected future paymentsare discounted using market yields at the end of the reporting period on national government bonds with terms to maturity that match, as closelyas possible, the estimated future cash outflows.

The provision for annual leave is classified as a current liability as the Institute does not have an unconditional right to the defer settlement of the liabilityfor at least 12 months after the reporting period.

Long service leave

The liability for long service leave expected to be settled within 12 months after the reporting period is recognised and measured at the undiscounted amountsexpected to be paid when the liability is settled.Long service leave not expected to be settled within 12 months after the reporting period is recognised and measured at the present value of amountsexpected 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 employersuperannuation contributions, as well as the experience of employee departures and periods of service. The expected future payments are discounted usingmarket 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.

Unconditional long service leave provisions are classified as current liabilities as the Institute does not have an unconditional right to defer settlement of theliability for at least 12 months after the reporting period. Conditional long service leave provisions are classified as non-current liabilities because the

Institute has an unconditional right to defer the settlement of the liability until the employee has completed the requisite years of service.

SuperannuationThe Government Employees Superannuation Board (GESB) in accordance with egisla ve requirements administers public sector superannuationarrangements 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 StateSuperannuation Scheme (GSS), a defined benefit lump sum scheme also closed to new members since 1995.

The Institute 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 obligationsare funded by concurrent contributions made by the Institute 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 GSSobligations.

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 theGESB Super Scheme (GESBS). Both of these schemes are accumulation schemes. The Institute 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(o) 'Superannuation expense.

(ii) Provisions - otherEmployment on-costsEmployment on-costs, including workers' compensation insurance, are not employee benefits and are recognised separately as expenses and liabilitieswhen the employment, to which they relate, has occurred. Employment on-costs are included as part of 'Other expenses' and are not included as part ofthe Institutes 'Employee benefits expense'. The related liability is included in 'Employment on-costs provision'. (See note 10 'Other expenses' and note 27Provisions'.)

(o) 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 planfor agency purposes because the concurrent contributions (defined contributions) made by the Institute to GESB extinguish all of the Institutesobligations to the related superannuation liability.

(p) 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 theStatement of Comprehensive Income .

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

3 Judgements made by management in applying accounting policies

The preparation of financial statements requires management to make judgements about the application of accounting policies that have a significant effect on theamounts recognised in the financial statements. The Institute evaluates these judgements regularly.

Operating Lease Commitments

The Institute has entered into a commercial lease and has determined that the lessor retains substantially all the sign ficant risks and rewards incidental to ownership ofthe property. Accordingly, the lease has been classified as an operating lease.


4 Key sources of estimation uncertainty

The Institute makes key estimates and assumptions concerning the future. These estimates and assumptions are based on historical experience and various otherfactors that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.

Long Service LeaveIn calculating the Institute's long service leave provision, several estimations and assumptions have been made. These include expected future salary rates,salary inflation, discount rates, employee retention rates and expected future payments. Any changes in these estimations and assumptions may impact on the

carrying amount of the long service leave provision.

The following are other sources of estimation uncertainty that may be disclosed where they have a significant risk of material impact:discount rates used in estimating provisions;estimating useful life and residual values of key assets;estimating depreciated replacement cost; andcontaminated sites (for example, in estimating the liability when remediation required, refer to APG 1 Accounting for Contaminated Sites).]

5 Disclosure of changes in accounting policy and estimates

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

impacted on the Institute.

This Standard amends AASB 5 Non-current Assets Held for Sale and Discontinued Operations in respect of the classification, presentation and measurement ofnon-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

Institute 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

The Institute has not made any voluntary changes in accounting policy that has an effect in the current reporting period, or any prior period, or would have an effect on that periodexcept that it is impracticable to determine the amount of the adjustment, or might have an effect on future periods.

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

Title Operative for reporting periods

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

The amendment to AASB 7 Financial Instruments: Disclosures' requires modification to the disclosure of categories offinancial assets. The Institute does not expect any financial impact when the Standard is first applied.The disclosure of categories of financial assets in the notes will change.

AASB 1053 Application of Tiers of Australian Accounting Standards. This Standard establishes a differential financialreporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements.The Standard does not have any financial impact on the Institute. However it may affect disclosures in the financial statementsof the Institute 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 RequirementsThis Standard makes amendments to many Australian Accounting Standards, including Interpretations, to introduce reduceddisclosure requirements into these pronouncements for application by certain types of entities.The Standard is not expected to have any financial impact on the Institute. However this Standard may reduce some notedisclosures in the financial statements of the Institute. DTF has not yet determined the application or the potential impactof the amendments to these Standards for agencies.

The Institute considers the following Australian Accounting Standards as either not being applicable to the public sector as they have no impact or do not apply tonot-for-profit entities.

Title

AASB 9 Financial InstrumentsAASB 124 Related Party DisclosuresInt 19 Extinguishing Financial Liabilities with Equity InstrumentsAASB 2009-10 AASB 2009-10 Amendments to Australian Accounting Standards Classification of Rights

Issues [AASB 132]AASB 2009-12 Amendments to Australian Accounting Standards [AASBs 5, 8, 108, 110, 112, 119, 133, 137, 139,

1023 & 1031 and Interpretations 2, 4, 16, 1039 & 1052]AASB 2009-13 Amendments to Australian Accounting Standards arising from Interpretation 19 [AASB 1]AASB 2009-14 Amendments to Australian Interpretation Prepayments of a Minimum Funding Requirement

[AASB Interpretation 14]AASB 2010-1 Amendments to the Australian Accounting Standards Limited Exemption from Comparative AASB 7

Disclosures for First-time Adopters [AASB 1 & AASB 7]AASB 2010-3 Amendments to Australian Accounting Standards arising from the Annual Improvements Project

[AASB 3, AASB 7, AASB 121, AASB 128, AASB 131, AASB 132 and AASB 139]

AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual ImprovementsProject [AASB 1, AASB 7, AASB 101 & AASB 134 and Interpretation 13]

1-Jan-13

1-Jul-13

1-Jul-13

Operative for reportingperiods

1-Jan-13

1-Jan-11

1-Jul-10

1-Feb-10

1-Jan-11

1-Jul-10

1-Jan-11

1-Jul-10

1-Jul-10

1-Jan-11


Changes in Accounting Estimates

The Institute has not made changes in accounting estimates that has an effect in the current reporting period, or any prior period, or would have an effect on that period except thatit is impracticable to determine the amount of the adjustment, or might have an effect on future periods.

C.Y. O'Connor InstituteNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010

2010 2009

6 Employee benefits expenseWages and salaries (a) 9,985,346 9,016,387

Superannuation - defined contribution plans (b) 815,340 772,40410,800,685 9,788,790

(a) Includes the value of the fringe benefit to the employee plus the fringe benefits tax component, leave entitlements including superannuationcontribution 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 10 'Other expenses'. The employment on-costsliability is included at note 27 'Provisions'.

7 Supplies and services

Consumables and minor equipment 1,099,019 826,365

Communication expenses 147,967 122,795

Utilities expenses 162,186 138,010

Consultancies and contracted services 1,019,251 1,243,789

Minor works 426,256 38,977

Repairs and maintenance 371,843 175,847

Operating lease and hire charges 328,812 223,369

Travel and passenger transport 159,772 172,668

Advertising and public relations 166,364 80,623

Supplies and services - other 173,686 134,053

4,055,157 3,156,495

8 Depreciation expense

Buildings 283,250 319,350

Motor vehicles, caravans and trailers 134,788 157,548

Plant, furniture and general equipment 125,096 152,354

Computers and communication network 15,813 5,893Marine craft 3,652 3,652Total depreciation 562,599 638,796

9 Finance costsOther interest expenses - General Interest Charge paid to the ATO 20,283

Finance costs expensed 20,283

Finance costs include borrowing costs. AASB 123.5 defines borrowing costs as interest and other costs incurredby an entity in connection with the borrowing of funds, including finance charges associated with AASB 117 financeleases (AASB 123.6(d)). Other finance costs would include discounting expense incurred under AASB 5.17 andAASB 137.60. AASB 119 requires the discounting of employee benefits to be recognised in the nature of theexpense rather than separately as a finance cost. See also AASB 132, AASB 102 and AASB 141 and relatedinformation at note 10 'Other expenses' and note 27`Provisions'.

10 Other expensesAsset revaluation decrement

Doubtful debts expense 4,421 (7,830)

Employment on-costs (a) 957,805 781,856

Donations 5,073 318

Student prizes and awards 3,093 6,483

Losses and write-offs 8,167 24,642

Estimated Refund of DPA to Department of Training and Workforce Development 194,777

Other (b) 113,176 90,667

1,286,512 896,136

(a) Includes workers' compensation insurance and other employment on-costs. The on-costs liability associatedwith the recognition of annual and long service leave liability is included at note 27 'Provisions'. Superannuationcontributions accrued as part of the provision for leave are employee benefits and are not included in employmenton-costs.

(b) Includes external audit fees plus miscellaneous expenditures.

11 Fee for serviceFee for service - general 178,813 189,189

Fee for service - Department of Training and Workforce Development 65 77,446

Fee for service -other 19,716 7,532

198,594 274,167

12 Student fees and chargesTuition fees 535,677 557,874

Enrolment fees 5,450 (23,401)

Resource fees 375,776 392,462

Other Institute fees 1 132 602

918,036 927,539



2010 2009

13 Ancillary tradingOther ancillary revenue 427 1,072

427 1,072

14 Trading profit

(a) Bookshop:Sales 150,125 105,831

Cost of sales:

Opening inventory (42,306) (32,306)

Purchases (130,493) (95,299)(172,799) (127,604)

Closing inventory 47,108 42,306

Cost of goods sold (125,691) (85,299)

Trading profit - Bookshop

(b) Cafeteria (non-training related)

24,434 20,532

Sales 82,457 91,017

Cost of sales:

Opening inventory

Purchases (37,944) (45,334)

(37,944) (45,334)Closing inventory

Cost of goods sold (37,944) (45,334)

Trading profit - Cafeteria 44,512 45,684

68,947 66,216See note 2(k) 'Inventories' and note 21 'Inventories'.

15 Commonwealth grants and contributions

Commonwealth specific purpose grants and contributions 347,783 1,322,212

347,783 1,322,212

These grants include Better TAPE Facilities funding - part of the Teaching and Learning Capital Fund

16 Interest revenueInterest revenue from operating account 214,726 129,438

214,726 129,438

17 Other revenueRental and facilities fees 56,004 56,435

Sponsorship and donations revenue 9,545 4,898

Miscellaneous revenue 167,994 199,975

233,544 261,308

18 Net gain on disposal of non-current assets

Costs of disposal of non-current assets:

- Motor vehicles, caravans and trailers (82,934) (20,425)Total cost of disposal of non-current assets (82,934) (20,425)

Proceeds from disposal of non-current assets:

- Motor vehicles, caravans and trailers 136,633 32,759

- Plant, furniture and general equipment 500

Total proceeds from disposal of non-current assets 137,133 32,759

Net gain 54,199 12,334

19 Income from State Government

Appropriation received during the year

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

Delivery and Performance Agreement (DPA) 11,113,946 10,617,163

Superannuation 828,187 769,696

Other recurrent funds 571,247 340,283

Total State funds 12,513,380 11,727,142

Resources received free of charge determined on the basis of the following estimates provided by agencies (b):

Department of Training and Workforce Development

- Corporate systems support 170,969 577,110

- Marketing and publications 18,212

- Human resources, and industrial relations support 3,762 11,996

- Other 5,907

Total resources received free of charge 174,731 613,225

Total income from State Government 12,688,112 12,340,367

(a) Service appropriations are cash amounts received from the Department of Training and Workforce Development under the Delivery and Performance Agreement.

(b) Where assets or services have been received free of charge or for nominal cost, the Institute recognises revenues equivalent to the fair value of the assets and/or the fair value of thoseservices 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 Institute makes an adjustment direct to equity.



2010 200920 Restricted cash and cash equivalents

Current

Unexpended grant income (a) 47,983 1,306,967

47,983 1,306,967

Non-CurrentAllocation for 27th pay in 2015 (b) 252,640 189,894

252,640 189,894

(a) Unexpended Better Tafe Facilities Grant Funding 47,983 1,306,967(b) Future commitment to the 27th pay in 2015 252,640 189,894

300,623 1,496,861

21 Inventories

Inventories held for resale:

Bookshop (at cost) 47,108 42,306

Total 47,108 42,306

See also not 2(k) 'Inventories' and note 14 Trading profit/(loss)'.

22 Receivables

Current

Receivables - trade 134,940 155,614

Receivables - students 4,473 9,419

Accrued income 17,890 21,832

Allowance for impairment of receivables (10,221) (5,800)

GST receivable 40,375

187,457 181,065

Total current 187,457 181,065

Reconciliation of changes in the allowance for impairment of receivables:

Balance at start of year (5,800) (13,630)

Doubtful debts expense recognised in the Statement of Comprehensive Income (4,421) 7,830Balance at end of year (10,221) (5,800)

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

See also note 20) 'Receivables' and note 35 'Financial Instruments'.

23 Other assets

Current

Prepayments 79,889 85,384


24 Property, plant and equipment

Land

At fair value (a) 398,800 511,400

398,800 511,400BuildingsAt fair value (a) 10,700,000 11,330,000

10,700,000 11,330,000Motor vehicles, caravans and trailersAt cost 707,131 596,591

Accumulated depreciation (266,455) (350,478)

440,677 246,113Plant furniture and general equipment

At cost 1,170,752 1,074,913


339,283 368,540Computer equipment, communication network

At cost 210,980 174,955

Accumulated depreciation (60,640) (165,342)150,340 9,614

Marine craftAt cost 36,522 36,522


23,684 27,336

12,052,783 12,493,003



2010 2009(a) Freehold land and buildings were revalued as at 1 July 2010 by the Western Australian Land Information Authority(Landgate). 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 reportingperiod are set out below.

Land Buildings

Motorvehicles,

caravans andtrailers

Plant,furniture and

generalequipment

Computerequipment,

communicationnetwork Marine craft Total

2010 $ $ $ $ $ $ $

Carrying amount at start of year 511,400 11,330,000 246,113 368,540 9,614 27,336 12,493,003

Additions 412,286 95,839 156,539 664,663

Disposals (82,934) (82,934)

Revaluation increments/(decrements) (a) (112,600) (346,750) (459,350)Depreciation expense (283,250) (134,788) (125,096) (15,813) (3,652) (562,599)Carrying amount at end of year 398,800 10,700,000 440,677 339,283 150,340 23,684 12,052,783

Land Buildings

Motorvehicles,

caravans andtrailers

Plant,furniture and

generalequipment

Computerequipment,

communicationnetwork Marine craft Total

2009 $ $ $ $ $ $ $

Carrying amount at start of year 511,400 12,774,000 389,690 489,354 10,325 30,988 14,205,757

Additions 34,396 31,540 5,182 71,118

Disposals (20,426) (20,426)

Revaluation increments/(decrements) (a) (1,124,650) (1,124,650)

Depreciation expense (319,350) (157,547) (152,354) (5,893) (3,652) (638,796)

Carrying amount at end of year 511,400 11,330,000 246,113 368,540 9,614 27,336 12,493,003

(a) Recognised in the Statement of Comprehensive Income. Where an asset measured at cost is written down torecoverable amount, an impairment loss is recognised in the Statement of Comprehensive Income. Where an assetmeasured at fair value is written down to recoverable amount, the loss is accounted for as a revaluation decrement.

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

The Institute held no goodwill or intangible assets with indefinite useful lives during the reporting period and at the endof 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.

26 Payables

CurrentTrade payables 3,326 3,137GST payable 1,782Accrued expenses 128,048 146,560Accrued salaries and related costs 259,732 179,888


See also note 2(m) 'Payables' and note 35 'Financial Instruments'.

27 Provisions

CurrentEmployee benefits provisionAnnual leave (a) 453,477 412,754Long service leave (b) 1,103,090 810,255

1,556,567 1,223,009Other provisionsEmployment on-costs (c) 279,154 173,805

279,154 173,805

Total current 1,835,721 1,396,814

Non-currentEmployee benefits provisionAnnual leaveLong service leave (b) 402,266 330,023

402,266 330,023Other provisionsEmployment on-costs (c) 60,125 43,893

60,125 43,893

Total non-current 462,391 373,916



2010 2009(a) Annual leave liabilities have been classified as current as there is no unconditional right to defer settlement for atleast 12 months after the reporting period. Assessments indicate that actual settlement of the liabilities will occur asfollows:Within 12 months of the end of the reporting period 384,408 331,470More than 12 months after the end of the reporting period 183,350 147,325

(b) Long service leave liabilities have been classified as current where there is no unconditional right to defer settlementfor at least 12 months after the end of the reporting period. Assessments indicate that actual settlement of the liabilitieswill occur as follows:

567,758 478,795

Within 12 months of the end of the reporting period 696,522 322,984More than 12 months after the end of the reporting period 1,033,832 968,951

(c) The settlement of annual and long service leave liabilities gives rise to the payment of employment on-costsincluding 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 10 'Other expenses'.

1,730,354 1,291,935

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 217,698 195,098Additional provisions recognised 121,581 22,600Carrying amount at end of year 339,279 217,698

28 Other liabilities

Current

Income received in advance (a) 20,470 23,221

Other - Department of Training and Workforce Development 194,777

Total current liabiliti. 215,247 23,221

(a) Comprises monies received from the Department of Justice and fee for service clients for future student enrolments. 20,470 23,221

(b) Department of Training and Workforce Development - Estimated refund of DPA 194,777

215,247 23,221

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

Contributed equity

Balance at start of year 176,634 176,634

Contributions by owners

Capital appropriation (a)

Transfer of net assets from other agencies (b)

Total contributions by owners

Distributions to owners ( c )

Total distributions to owners

Balance at end of year 176,634 176,634

(a) Treasurer's instruction TI 955 'Contributions by Owners Made to Wholly Owned Public Sector Entities' designates Capital Appropriations as contributions by ownersin accordance with AASB. Interpretation 103 8 'Contributions by Owners Made to Wholly-Owned Public Sector Entities'.

(b).AASB 1004 'Contributions', requires transfers of net assets as a result of a restructure of administrative arrangements are to be accounted for as contributionsby owners and distributions to owners. Where activities are transferred from one agency to another agency as a result of a restructure of administrativearrangements, AASB 1004 (paragraph 57) requires the transferee agency to disclose the expenses and income attributable to the transferred activities forthe reporting period, showing separately those expenses and income recognised by the transferor agency during the reporting period. Furthermore, AASB 1004(paragraph 58) requires disclosures by class for each material transfer of assets and liabilities in relation to a restructure of administrative arrangements,together with the name of the counterparty transferor/transferee agency. In respect of transfers that are individually immaterial, the assets and liabilitiesare to be disclosed on an aggregate basis.

TI 955 designates non-discretionary and non-reciprocal transfers of net assets between state government agencies as contributions by owners in accordancewith AASB Interpretation 1038, where the transferee agency accounts for a non-discretionary and non-reciprocal transfer of net assets as a contribution by ownersand the transferor agency accounts for the transfer as a distribution to owners.

(c) TI 955 requires non-reciprocal transfers of net assets to Government to be accounted for as distribution to owners in accordance with AASB Interpretation 1038.

Reserves

Asset revaluation surplus

Balance at start of year: 5,737,578 6,862,228

Net revaluation decrements:

Land (112,600)

Buildings (346,750) (1,124,650)Balance at end of year 5,278,228 5,737,578

Accumulated surplus/(deficit)

Balance at start of year 10,037,826 9,203,673

Result for the period (1,980,5 84) 834,153

Balance at end of year 8,057,242 10,037,826



2010 200930 Notes to the Statement of Cash Flows

Reconciliation of cashCash at the end of the financial year.the Statement of Financial Position as

Cash on hand 5,900 6,100

Cash at bank 3,742,808 3,772,637

3,748,708 3,77 8,737

Restricted cash and cash equivalents (refer to note 20 Restricted cash and cash equivalents') 300,623 1,496,861

4,049,331 5,275,598

Reconciliation of net cost of services to net cash flows used in operating activities

Net cost of services (14,668,696) (11,506,213)

Non-cash items:Depreciation and amortisation expense 562,599 638,796Doubtful debts expense 4,421 (7,830)Superannuation expense 828,187 769,696Resources received free of charge 174,731 613,225Net (gain)/loss on sale of property, plant and equipment (54,199) (12,334)Losses and write-offs (excludes cash shortages/thefts of money) 6,276 24,533Fringe Benefits Tax Offset Against GST 33,959 42,932Finance Costs - GIC offset from GST receivable - 10,014

(Increase) /decrease in assets:Current receivables (c) 24,004 (45,683)Current inventories (5,521) (18,077)Other current assets 5,495 15,814

Increase/(decrease) in liabilities:Current payables (c) 61,522 100,114Current provisions 438,907 423,589Other current liabilities 192,026 38,169Non-current provisions 88,475 (242,304)Other non-current liabilities

Net GST receipts/(payments) (a) (76,326) (126,465)Change in GST in receivables/payables (b) 210 (6)

Net cash used in operating activities

(a) This is the net GST paid/received, i.e. cash transactions(b) This reverses out the GST in receivables and payables(c) Note that the Australian Taxation Office (ATO) receivable/payable in respect of GST and the receivable/payable

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

(12,383,930) (9,282,030)

Non-cash financing and investing activities

There were no material non-cash financing or investment activities undertaken with external parties during the financial year.

31 Commitments

Lease commitments

Commitments in relation to leases contracted for at the end of the reporting period but not recognised in the financial statements, arepayable as follows:

Within 1 year 221,444 180,601

Later than 1 year and not later than 5 years 218,767 76,678

Later than 5 years

440,211 257,278

Representing:

Cancellable operating leases 7,321 15,971

Non-cancellable operating leases 432,891 241,307

440,211 241,307

Non-cancellable operating lease commitmentsCommitments for minimum lease payments are payable as follows:Within 1 year 214,124 164,629Later than 1 year and not later than 5 years 218,767 76,678Later than 5 years

432,891 241,307

32 Contingent liabilities and contingent assets

The Institute Council is not aware of any contingent liabilities or contingent assets as at balance date.

Contaminated sites

Under the Contaminated Sites Act 2003, the Institute is required to report known and suspected contaminated sites to the Department of Environment and Conservation (DEC). In accordance with the Act, DECclassifies these sites on the basis of the risk to human health, the environment and environmental values. Where sites are classified as contaminated - remediationrequired or possibly contaminated - investigationrequired, the Institute may have a liability in respect of investigation or remediation expenses.

The Institute's Council is not aware of any contaminated sites on any of the properties under its control as at balance date.

Contingent assets

The Institute's Council is not aware of any contingent assets as at balance date.

33 Events occurring after the reporting period

The Institute's Council is not aware of any other matters or circumstances that have arisen since the end of the financial year to the date of this report which have significantly affected or may significantly affect theactivities of the Institute, the results of those activities or the state of affairs of the Institute in the ensuing or any subsequent years.



2010 200934 Explanatory statement

Significant variations between estimates and actual results for income and expense are shown below.

Significant variances between estimated and actual result for the financial year 2010

Expense

Significant variations are considered to be those greater than 10 % or $50,000.

20 10 20 10Estimate Actual Variance

Employee benefits expense 8,857,043 /#/#/#/## (1,943,642) -22%

Supplies and services 3,197,208 4,055,157 (857,949) -27%

Depreciation expense 630,000 562,599 67,401 11%

Finance costs 20,000 20,000 100%

Other expenses 844,2 19 1,286,5 12 (442,292) -52%

Income

Fee for service 300,000 198,594 101,406 34%

Sales 190,032 232,582 (42,550) -22%

Commonwealth grants and contributions 347,783 (347,7 83) 100%

Interest revenue 111,138 214,726 (103,588) -93%

Gains

Gain on disposal of non-current assets 54,199 (54,199) 100%

Employee expenses

The Institute underestimated these expenses as the employment of casual and other staff increased significantly in 2010 to due the expansion of delivery into new areas as the Institute increased itsgeographical delivery footprint and areas of academic delivery.

Supplies and Services

The Institute procured significant additional tools and equipment to support the new areas of delivery. In addition several trailers were outfitted for specialised remote delivery. In addition substantial non-capital work undertaken in regard to refurbishments of staff and delivery areas.

Depreciation Expense

The revaluation decrement arising from the revaluation of buildings in 2010 resulted in a lower than expected depreciation expense.

Finance Costs

Over estimation of finance costs associated with the ATO general interest charge that was incurred in 2009 but not 2010. The Institute did not have any amendments to GST during the year.

Other Expenses

The Institute has incorporated a significant provision for refund to the Department of Training and Workforce Development that were not anticipated when developing its estimates for 2010.

Fee for Service

The Institute over-estimated the capacity to acquire fee for service revenue in the Wheatbelt in 2010, and did not achieve this expectation

Sales

A unexpected increase in bookshop sales was experienced in 2010.

Commonwealth Grants and Contributions

An unexpected inflow of an additional $300,000 in Better Tafe Facilities funding was received.

Interest Revenue

Increase in interest rates over the 12 months accounted for most of this increase.


Unexpected gain from the disposal of non-current assets.



2010 2009Significant variances between actual 2010 and prior year actual 2009

Expense

2010 2009 Variance

Employee benefits expense 10,800,685 9,788,790 1,011,895 10%

Supplies and services 4,055,157 3,156,495 898,662 28%

Depreciation expense 562,599 638,796 (76,197) -12%

Finance costs 20,283 (20,283) -100%

Cost of sales 163,635 130,632 33,003 25%

Other expenses 1,286,512 896,136 390,376 44%

Income

Fee for service 198,594 274,167 (75,573) -28%

Commonwealth grants and contributions 347,783 1,322,212 (974,429) -74%

Interest revenue 214,726 129,438 85,288 66%

Other revenue 233,544 261,308 (27,765) -1 1%

Gains

Gain on disposal of non-current assets 54,199 12,334 41,865 339%

Employee expenses

Casual and other staff costs increased significantly in 2010 to due the expansion of delivery into new areas as the Institute increased its geographical delivery footprint and areas of academic delivery.

Supplies and Services

The Institute procured significant additional tools and equipment to support the new areas of delivery. In addition several trailers were outfitted for specialised remote delivery. In addition substantial non-capital work undertaken in regard to refurbishments of staff and delivery areas.

Depreciation Expense

The revaluation decrement arising from the revaluation of buildings in 2010 resulted in a lower depreciation expense compared with the previous year.

Finance Costs

ATO general interest charge levied in 2009 was not repeated 2010.

Cost of Sales

Increased sales activity in the Bookshop has resulted in an increase in cost of sales.

Other ExpensesThe Institute has incorporated a significant provision for refund to the Department of Training and Workforce Development that was not needed in 2009 and on-costs for employee entitlements hasincreased with increases in employment expenses.

Fee for Service

The Institute did not conduct as many fee for service activities as in 2009.

Commonwealth Grants and Contributions

Only $300,000 in Better Tafe Facilities funding was received in 2010 per Commonwealth funding rounds.

Interest Revenue

Increase in interest rates earned on cash at bank.

Other Revenue

The dominant causes for the decrease in this item are the reduction in Special purpose grants Non DT by $90,000, and a reduction in GEHA rent collection of $10,000.


Additional gain from the disposal of non-current assets

35 Financial instruments

(a) Financial risk management

Financial instruments held by the Institute are cash and cash equivalents, restricted cash and cash equivalents and receivables and payables. The Institute has limited exposure to financial risks. The Institutes overallrisk management program focus on managing the risk identified below:

Credit risk

Credit risk arises when there is the possibility of the Institute's receivables defaulting on their contractual obligations resulting in financial loss to the Institute. Themaximum exposure to credit risk at end of thereporting period in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any provisions for impairment as shown in the table at note 35(c) 'Financial instrumentsdisclosures' and note 22 'Receivables'.

Credit risk associated with the Institute's financial assets is minimal because the Institute trades only with recognised, creditworthy third parties including other government agencies. The Institute has policies in placeto ensure that sales of products and services are made to customers with an appropriate credit history. In addition, receivable balances are monitored on anongoing basis with the result that the Institutes exposure todebt is minimal. There are no significant concentrations of credit risk.

Liquidity risk

Liquidity risk arises when the Institute is unable to meet its financial obligations as they fall due. The Institute is exposed to liquidity risk through its trading in the normal course of business. The Institute hasappropriate 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

Market risk is the risk that changes in market prices such as foreign exchange rates and interest rates will affect the Institute's income or the value of its holdings of financial instruments. The Institute does not trade inforeign currency and is not materially exposed to other price risks (for example, equity securities or commodity prices changes). The Institutes exposure to market riskfor changes in interest rates relates primarily toshort term cash rates received on cash at bank as it has no borrowings.



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

Financial Assets

Cash and cash equivalent 3,748,708 3,77 8,737Restricted cash and cash equivalent 300,623 1,496,861Receivables (a) 157,303 186,865

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

391,106 329,584

(c) Financial instrument disclosuresCredit risk and interest rate exposuresThe following table discloses the Institute's maximum exposure to credit risk, interest rate exposure and the ageing analysis of financial assets. The Institute's maximum

exposure to credit risk at the end of the reporting period is the carrying amount of financial assets as shown below. The table discloses the ageing of financial assets

that are past due but not impaired and impaired financial assets. The table is based on information provided to senior management of the Institute.

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

The Institute 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.

WeightedAverageEffective

Interest Rate

Financial Assets

2010

Cash and cash equivalent 4.5 0%

Restricted cash and cash equivalent 4.50%

Receivables (a)

2009Cash and cash equivalent 3.5 0%Restricted cash and cash equivalent 3.50%Receivables (a)

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

CarryingAmount

Fixed InterestRate

VariableInterest Rate

Non-InterestBearing

Within 1 year 1-2 Years 2-5 Years More than 5years

ImpairedFinancial

Assets

$ $ $ $ $ $ $ $ $

3,748,708 3,742,808 5,900

300,623 300,623 -

157,303 - 157,303 38,683 10,221

4,206,634 4,043,431 163,203 38,683 10,221

3,77 8,737 3,772,637 6,1001,496,86 1 1,496,861 -

186,865 186,865 159,432 5,7995,462,462 5,269,498 192,965 159,432 5,799

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

Liquidity risk

The following table details the contractual maturity for financial 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.

Financial Liabilities

2010

Payables

WeightedAverageEffective

Interest Rate

Nil

2009

Payables Nil

Interest rate exposure and maturity analysis of financial liabilitiesInterest rate exposure maturity date

CarryingAmount

Fixed InterestRate

VariableInterest Rate

Non-Interest AdjustmentBearing for discounting

Total NominalAmount

Within 1

year1-2 Years 2-5 Years More than 5

years

$ $ $ $ $ $ $ $ $ $

391,106 391,106 391,106

391,106 391,106 391,106

329,584 329,584 329,584329,5 84 329,584 329,584

Interest rate sensitivity analysis

The following table represents a summary of the interest rate sensitivity of the Institute's financial assets and liabilities at the end of the reporting period on the surplus for the period and equity for a 1% change ininterest rates. It is assumed that the change in interest rates is held constant throughout the reporting period.

- 100 Basis PointsCarrying amount

+ 100 Basis Points

Surplus Equity Surplus Equity

2010

Financial Assets

Cash and cash equivalent 3,742,808 (37,428) (37,428) 37,428 37,428Restricted cash and cash equivalent 300,623 (3,006) (3,006) 3,006 3,006

Total Increase/(Decrease) 4,043,431 (40,434) (40,434) 40,434 40,434

2009

- 100 Basis Points + 100 Basis PointsCarrying amount

Surplus Equity Surplus Equity

Financial Assets

Cash and cash equivalent 3,772,637 (37,726) (37,726) 37,726 37,726

Restricted cash and cash equivalent 1,496,861 (14,969) (14,969) 14,969 14,969

Total Increase/(Decrease) 5,269,498 (52,695) (52,695) 52,695 52,695

Fair values



2010 2009All 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.



2010 200936 Remuneration of members of the Institute and senior officers

Remuneration of members of the Institute

The number of members of the Institute whose total of fees, salaries, superannuation, non-monetary benefits and otherbenefits for the financial year, fall within the following bands are:

$0 $10,000$180,001 - $190,000

$190,001 - $200,000

The total remuneration of the members of the Institute is:

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

Remuneration of senior officers

The number of senior officers of the Institute whose total of fees, salaries, superannuation, non-monetary benefits andother benefits for the financial year, fall within the following bands are:

2010 2009

8 5

(a) 223,073 186,710

$20,001 - $30,000

$40,001 - $50,000

$50,001 - $60,000

$110,001 -$120,000$120,001 -$130,000$140,001 -$150,000$160,001 - $170,000

$180,001 - $190,000

The total remuneration of senior officers is:

The total remuneration includes the superannuation expense incurred by the Institute in respect of senior officers other

than senior officers reported as members of the Institute.

(a)

2010

2

711,889

2009

310,808

(a) For the first time in 2010, in accordance with the requirements of Treasurer's Instruction 952 (3) (ii) (a) remuneration also includes amounts paid or payble to senior officers and forthe first time includes leave entitlements. This has resulted in a substantial increase in the total and individual values of benefits disclosed in the bandings above for 2010. No amendmenthas been made to the comparative.

No senior officers are members of the Pension Scheme.

37 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 57,500 55,000

The expense is included in note 10 'Other expenses'.

38 Related bodiesThe Institute has no related bodies.

39 Affiliated bodiesThe Institute has no affiliated bodies.

40 Supplementary financial information2010 2009

Write-Offs

Public property

Bad debts 5,546 16,458

Inventory 718 8,077

Other (provide details)

Losses through theft, defaults and other causes

Losses of public and other moneys and public and other property through theft, default or otherwise 1,902 107

Amount recovered

Gifts of Public PropertyGifts of Public Property provided by the Institute 8,165 6,801

41 Schedule of income and expenditure by service

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


Leff to right: C.Y

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Northam Campus & RegionalAdministrationLot 1 Hutt StreetPO Box 498Northam WA 6401Ph: 1800 627 256Library: 9622 6740Bookshop: 9622 6744email: [email protected]

Narrogin Campus59 Fortune StreetPO Box 457Narrogin WA 6312Ph: 9881 9000email: [email protected]

Merredin Campus42 Throssell RoadPO Box 542Merredin WA 6415Ph: 9081 3555email: [email protected]

Moora Campus242 Berkshire Valley RoadPO Box 329Moora WA 6510Ph: 9651 0111email: [email protected]

Muresk CampusSpencers Brook RoadPO Box 498

email: [email protected]

Muresk WA 6401Ph: 9622 6826 gem ma

I -

71111111r1 11111111

C.Y. O'CONNORINSTITUTEEDUCATION I TRAINING

Documents

11111 - Parliament of Western Australia€¦ · Centre a Nyoongar Bush Academy by another name based at the Wandering Mission site. Perhaps the highlight of the year, though, was