ANNUAL REPORT - Parliament of Victoria · Currently, Chisholm offers certificate, diploma, advanced diploma and graduate certificate courses, short courses and degree programs. There

2013

ANNUAL REPORT

OUR VISION

Leading the way in education and training to inspire

success and transform lives.

OUR PURPOSE

Chisholm Institute excels in education and training

and is respected and valued for enhancing the social

and economic futures of individuals, industry and

communities.

OUR VALUES

• Makingadifferencethroughlearning

• Integrityandrespect

• Excellence

• Serviceandrelevance

• Diversity

• Sustainablepractices.

Cover Art: Incorporates ‘The Pipe’ • Cert IV in Photo Imaging Graduate 2013 • Jennifere Thompson

3Chisholm Institute Annual Report 2013

WelcomeAboutthisreport 4

AboutChisholm 5

Board Chair’s message 6

CEO’s message 7

Student highlights 8

Partnership highlights 12

Teaching highlights 14

People and development reports 17

Statistical overview 18

Board and committees 20

Executive team 22

Corporate governance 23

Riskmanagementcomplianceattestation 28

Socialresponsibility 29

Financial and compliance information 31

Financial overview 32

Chisholm Institute financial reports and performancestatements

38

Caroline Chisholm Education Foundation financial report 89

Activitytable 103

Financialperformanceagainstbudget 105

Disclosuresindexandadditionalcompliancereports 106

Acronyms 127

4 Chisholm Institute Annual Report 2013

ABOUT ThIS REPORTThe Chisholm Institute (Chisholm) 2013 Annual Report is a report to the Parliament of Victoria required under Section 45 of the Financial Management Act 1994. The report contains a report on the operations of Chisholm during 2013, audited standard financial and performance statements and other information required under Standing Directions of the Minister for Finance under the Act (Section 4 Financial Management Reporting) and the Financial Reporting Directions given under that Act.

In the preparation of this report Chisholm has followed the reporting guidelines issued by the Higher Education and Skills Group, Department of Education and Early Childhood Development. This report is based on the model Annual Report issued with these guidelines, in accordance with the Financial Management Act 1994, Australian Accounting Standards, Statement of Accounting concepts, authoritative pronouncements of the Australian Accounting Standards Board and other legislative requirements.

This report also includes details of the operations of the Caroline Chisholm Education Foundation and an audited financial report for the Foundation. The Caroline Chisholm Education Foundation is a controlled entity of the Chisholm Institute Board.

All financial information presented in this report is consistent with the audited financial report for Chisholm Institute and the Caroline Chisholm Education Foundation.

Queries in relation to this report can be addressed to:The Chief Operating OfficerChisholm InstitutePO Box 684Dandenong Vic 3175E: [email protected]

Further information about Chisholm can be obtained at www.chisholm.edu.au.

Maria Peters Chief Executive Officer

26February2014

Grant Radford

Chief Finance and Accounting Officer

26February2014


AboutChISholM

Chisholm’s vision is to lead the way in education and training, to inspire success and to transform people’s lives. The values by which the Institute stands include making a difference through learning; integrity and respect; excellence; service and relevance; diversity; and sustainable practices.

Chisholm is a Victorian Government institute of technical and further education established under the Education and Training Reform Act 2006. The responsible Minister is the Hon. Peter Hall MLC, sworn in as Minister for Higher Education and Skills. Chisholm was named in 1998 in honour of Caroline Chisholm, the early Australian reformer and humanitarian.

In 2013 the Institute continued its response to major changes in the sector, successfully moving to a more customer-centric business model, streamlining processes and expanding pathways to develop more opportunities for students.

Chisholm is multi-sectoral, delivering a broad range of education and training programs and services in higher education, VET and school sectors across its campuses, online, in the workplace and overseas with partner educational and government organisations.

Currently, Chisholm offers certificate, diploma, advanced diploma and graduate certificate courses, short courses and degree programs. There are plans to deliver a Master of Business Administration in partnership with Chifley Business School in 2014.

The Institute serves one of the state’s most culturally diverse and fastest growing regions in south east Victoria, with modern training facilities in Bass Coast, Berwick, Cranbourne, Dandenong, Frankston and Mornington Peninsula.

Chisholm is a proud public institute that has as its purpose to excel in education and training and be respected and valued for enhancing the social and economic futures of individuals, industry and communities.


boARDChAIR’SMESSAgEOur international projects continued in 2013, with major contracts for clients Qatar Petroleum, Fujian Electric Power College and AusAid, among others. Locally we also continued to work with key industry clients on a wide range of projects that reflect our scope of operations.

Importantly, we ended 2013 in a strong financial position, having met all our key performance indicators and with a strong plan for the future.

The Board would not have had such a positive first year were it not for the strong support received from the whole Chisholm community.

Firstly, I would like to thank the outgoing Board members for their hard work, and the new and continuing Board members (including the former Board Chair, David Willersdorf) for the valuable experience and insights they bring to our Board.

On behalf of the Board, I would like to thank our CEO, Maria Peters, for her outstanding leadership during a difficult time. We are very fortunate to have a CEO of Maria’s calibre and we very much appreciate her professionalism, enthusiasm and commitment.

I would like to thank the Executive Directors, who I have had the pleasure of working closely with throughout the last nine months. They have carried out their tasks professionally, capably and enthusiastically in a time of flux.

Thanks also to our managers and staff, the lifeblood of Chisholm, who have worked tirelessly to ensure that we continue to be recognised as one of the premier tertiary education facilities in Victoria. Their efforts are greatly appreciated.

And finally to our students, without whom Chisholm would not exist – thank you for choosing Chisholm as your preferred place of learning. I trust that you will continue to enjoy your experiences at Chisholm and graduate with fond memories of your time with us.

Stephen G. Marks Board Chair 26 February 2014

It is my pleasure to present the Chisholm Institute Annual Report for 2013, my first as a member of the Board and as Chair.

I am pleased to report that Chisholm went from strength to strength in 2013 despite the many issues we faced in a challenging environment, which included a significant reduction in government funding and increasing competition.

The actions taken by the CEO and the previous Board during the year, endorsed and supported by the new Chisholm Board, established a framework that has enabled our Institute to survive and prosper. While many of these decisions were difficult, they created a strong organisation and will stand us in good stead for the future. Restructuring of the organisation is now largely complete, but will continue to be fine-tuned as required to deal with changing circumstances.

This year, we implemented important constitutional amendments that impacted on the operations of both the Board and the Institute. This involved a change in Board membership. I was very pleased to be appointed to the Board and named Chair of the Board of Chisholm in April 2013. I joined with the members of the new Board to oversee Chisholm’s evolution into an efficient and effective organisation that is flexible and responsive, both to client requirements and to business opportunities. Each Board member brings with them significant expertise in terms of their own professional knowledge and experience, and all share a passion for the future of Chisholm.

The Board’s strategy for the Institute – Chisholm 2020 – continues to outline our vision, which is to be the Institute of Choice, Partner of Choice and Workplace of Choice. This document guides our long term strategic direction to ensure our future success and sustainability. During 2013, the new Board reviewed this strategy and made adjustments to a number of Chisholm 2020 supporting strategies to suit the new fiscal climate and streamline the implementation of government requirements.

As a Board, we also maintained a strong focus on governance responsibilities in 2013 to ensure that we remain capable of meeting the challenges and demands faced in the changing marketplace, and continue to be recognised nationally and internationally as a quality education and training provider.

In terms of strategic direction, we again expanded our higher education offerings this year, establishing and strengthening partnerships and developing courses – in consultation with industry – that result in defined pathways for our students from certificate through to degree levels. This will be extended again next year when we offer an MBA, in partnership with Chifley Business School.


CEo’SMESSAgE2013 was a year of transition, one in which we refocused the organisation after a major restructure and adjusted to the policy changes experienced by the whole VET sector.

The year began with new delivery arrangements, new campuses for some staff and new managers, all of which meant that we had to make significant adjustments at the busiest time of the year. We had new policies to implement and many changes to make as a result of the revised government funding arrangements. I was very heartened by the way our organisation came together and sought to re-invent and respond to an environment that is significantly different from that of our past.

Chisholm embraced the new climate and challenges and had a successful year, with much good news to celebrate. We met our training delivery and financial sustainability objectives and the whole Institute gained momentum as we went along.

As a snapshot, our highlights for 2013 included:

• commencing construction of the Berwick Trade Careers Centre and the START Ttade Training Centre at Frankston

• building and strengthening our industry partnerships with organisations such as Qatar Petroleum, Jewish Care Victoria, Doutta Galla, BUPA, IVECO, South East Water and Peninsula Health

• implementing Chisholm Stars, our employee recognition and reward program for excellence, innovation and leadership, with five teams and 74 individuals nominated for awards

• implementing the technology for and launching the new Technology Enabled Learning Centres (TELCs) in partnership with GippsTAFE and Advance TAFE; 20 centres are set to operate in 2014, delivering benefits to our students and communities

• providing 174 scholarships to our students in need through the Caroline Chisholm Education Foundation

• making improvements to our student management system, course information system, human resources systems and processes, Quality Management System and Business Client Relationship Management System.

This year our students received some significant recognition, being finalists and award winners in welding, fabrication, hair, beauty and IT, as well as WorldSkills involvement and success. We also celebrated our ABC Women in Broadcast Technology scholarship winner.

We were very proud to congratulate our first Bachelor of Community Health, Mental Health and Alcohol and Other Drugs degree students on their graduation, as well as the first graduates from the Chisholm and La Trobe accounting degree partnership.

Attracting, keeping and re-engaging students are key foci for us. In line with our commitment to put our customers first, we embarked on a major engagement project to centralise communications and provide a seamless, customer-focused approach to our enrolments. During the latter half of 2013 we implemented some key work that will continue into 2014.

We developed new products and broadened our existing products through expanding our blended, online and work based delivery options and resources across a wide range of courses to increase flexibility and responsiveness to meet student, employer and other client expectations.

Building our partnerships and relationships with industry and other external organisations continues to be critical to our future. We worked throughout 2013 with our partners on a large number of national and international projects that showcase our expertise and meet client needs. There are plans to grow these business areas into 2014 and beyond.

As an organisation, our long term directions are now set. We can take lessons and pride from our achievements this year, and use this as a foundation for a strong and successful future.

A new Chisholm Board was constituted in 2013. I wish to recognise the outgoing Board Chair, David Willersdorf, and the previous Board members for their work and contribution to Chisholm. I would also like to acknowledge the expertise, commitment and leadership of the new Board Chair, Stephen Marks, and thank the new Board for their strong guidance and support in a challenging year. Chisholm is fortunate to have a Board that understands its responsibilities, and has strong expertise and strategic leadership that it exercises in a way that is clearly advantageous to the Institute. Most of all, I sincerely thank our executives, managers and staff for their loyalty, commitment, hard work and professionalism in creating a positive and dynamic environment in which Chisholm can thrive.

Together, our goal is to grow Chisholm: allocating our resources, raising and diversifying revenues, and providing a customer-centred service to all our clients. I am proud of what we have achieved in a tough climate. I think we can close 2013 feeling good about the Chisholm brand and chart our way confidently through 2014.

Maria Peters Chief Executive Officer 26 February 2014


2013StuDEnthIghlIghtS

ABC SChOLARShIP wINCertificate IV in Electronics and Communications student Helen Talbot was awarded a 2013 ABC Women in Broadcast Technology Scholarship in a nationwide competition this year.

The scholarships provide career opportunities for Australian women studying electrical engineering, computer systems/shared technology, electronics technology and communications engineering. Successful applicants receive four weeks of paid work in the ABC Technology Division, plus a $1000 educational book allowance.

“Being one of the few women studying electronics and communications, I feel that I could be an excellent example for other women,” said Helen. “My win will show others that this is a viable and exciting career path for both genders.”

CARElEADStoAbRIghtFutuREKiara Haworth was named Youth Enterprise Award nominee at the Greater Dandenong Chamber of Commerce’s Premier Regional Business Awards, recognising the hard work she displayed while pursuing her dream of becoming a nurse.

While studying VCE, Kiara juggled a part time healthcare job and a VET in Schools nursing course through Chisholm, completing additional modules and a work placement to become a patient services assistant. Today she is a Diploma of Nursing student at Chisholm, working part time in a care facility.

“This is a great career path,” said Kiara. “I’m learning a lot as I go. Working in a hospital, I know what to expect from my career – and I truly want to be a nurse.”

APPRENTICE OF ThE YEAR Chisholm’s Apprentice of the Year, Leigh Hyman, is pleased with her decision to enter a career in the automotive industry, with so many opportunities to diversify.

As a mature-aged apprentice, Leigh completed the Certificate III in Automotive Technology (Light Vehicle) and at the same time notched up a Certificate II in Air Conditioning, and courses in LPG accreditation, advanced engine management and motorsport suspension.

Currently working at Prostreet Automotive in Frankston, she has just completed a Certificate IV in Automotive Technology and is interested in undertaking a Diploma in Automotive Management.

“I believe education and upskilling is critical,” said Leigh. “I know that my Chisholm qualifications are setting me up for a great career.”

Chisholm’s Apprentice of the Year, Leigh Hyman.


nAtIonAlChAMpIonjuDgES nExtgEnERAtIonNational champion panel beater and graduate Dayne Ciborowski returned to Chisholm this year to judge apprentices competing in the regional round of the WorldSkills Australia program.

Dayne believes that competitions such as this are very worthwhile for competitors. “It’s definitely something to put on your resume and employers really value the title.”

He said representing Australia at the 2013 WorldSkills International Championship in Leipzig was a great opportunity.

“Going to Germany for WorldSkills was full on, intimidating and exciting. It improved my time management and really sharpened and honed my skills. The intensive training made me a lot more confident.”

REpRESEntIngAuStRAlIAon thEwoRlDStAgEChisholm IT student and computer whiz Joshua Stevens was one of only three Australians chosen to compete in the world finals of the Adobe international computer software championships this year.

After achieving an almost perfect score in a Dreamweaver examination, Josh won the opportunity to travel to Washington in July for the Microsoft Office Specialist World Championship and the Adobe Certified Associate World Championship. He competed along with 125 top students from 40 countries.

Josh, a third year IT and software development student, hopes that his experience of competing overseas will help him achieve his career goal of becoming a web designer.

National champion panel beater and graduate Dayne Ciborowski returned to Chisholm this year to judge apprentices competing in the regional round of the WorldSkills Australia program.

IntERnAtIonAlAwARDShonouRChISholMStuDEntInternational student Sarah O’Shea was a VET International Student of the Year finalist in the Victorian International Education Awards 2013.

Sarah, a single mother from war-torn Zimbabwe, is currently in the joint management course at Chisholm. Having successfully completed the Certificate IV in Frontline Management, she is now studying the Diploma of Management.

Sarah constantly helps and inspires others by seeking out new ways to assist disadvantaged youth as well as encouraging fellow students to broaden their experience and become involved in their new community. She hopes to continue her studies and enhance her management qualifications.


2013StuDEnthIghlIghtS

bEAutyStuDEntSClEAnupAt InDuStRyAwARDSnIghtChisholm celebrated another success by winning big at this year’s annual Hair and Beauty Industry Association Awards.

The winners and their categories were Jade Chester (Certificate III in Hairdressing), Lisa Arena (Certificate III in Beauty Services) and Stephanie De Martin (Diploma of Beauty Therapy). These exceptional students were nominated for their proven skill and extraordinary commitment to their training, both at Chisholm and within industry.

“Teachers at Chisholm were helpful, warm and created such a great atmosphere,” Stephanie said. “The theory and practical experience meant that I have a great number of job opportunities. I’m so happy about where my course has taken me.”

FIRStChISholMAnDlAtRobE ACCountInggRADuAtESThe first graduates of the Chisholm and La Trobe Bachelor of Accounting accepted their certificates at the La Trobe University graduation ceremony in December.

Mature age students Angelina Colin, Ann Howes and Chakrya Sarin were all looking for a locally-delivered course that would lead to industry qualification and a new career path.

“Our Chisholm and La Trobe partnership has led to a fast tracked pathway program that provides the best of the private university model with a Chisholm feel,” explained Cathryn Daley, Administrator Accounting Pathways.

Graduates are eligible for membership with CPA Australia, the Institute of Chartered Accountants Australia and the Association of Chartered Certified Accountants.

Chisholm and La Trobe Bachelor of Accounting students.

Stephanie De Martin (Diploma of Beauty Therapy).


CElEbRAtIngnAtIonAlSKIllSwEEKChisholm Hair and Beauty students and staff shone at the launch of National Skills Week in Melbourne in August.

The team highlighted their abilities in the areas of body painting, special effects make-up, stage, prosthetics and glamour at the launch event.

The VIP attendees including Minister Hall and representatives from Victoria’s vocational education and training sector marvelled at the “Phantom”, the body painted student models and all our Stage make-up displays.

Aarron Ralston’s award winning artwork was exhibited at Ballarat’s Wolveschildren Art Gallery.

The Phantom Nick Kozakis and student models (from left) Rickel Chow and Chontelle Berryman.

photoIMAgIngtRAnSFoRMAtIonAarron Ralston’s dream to be a photographer and to run his own business is becoming a reality, thanks to a career change and Chisholm’s Certificate IV in Photo Imaging.

In 2012 Aarron was retrenched, with few prospects. Interested in photography, he chose the Chisholm course. Soon opportunities to work on photo shoots and within industry meant more work than he could manage while studying.

Enrolling in a course at Chisholm transformed Aarron’s life. In 2013 he was a winner in the Heritage Hill Art Box competition and had his work exhibited at Ballarat’s Wolveschildren Art Gallery. He has gone on to study for a Diploma of Photo Imaging.


2013 PARTNERShIP hIghlIghtS

ChISholMAnDjEwIShCARE pARtnERFoREDuCAtIonJewish Care Victoria has established a new Employment and Education Centre to deliver nationally accredited courses in partnership with Chisholm.

The first course, starting February 2014, will be the dual qualification in Certificate III in Aged Care and Home and Community Care.

The new Centre provides a great opportunity for people to develop skills and create pathways to new employment, with work placement and practical assessment occurring within Jewish Care facilities. There are also potential employment opportunities and job seeking assistance.

This partnership is a very positive initiative, providing greater access for all members of the community. It will see Chisholm continue to innovate and be responsive to students interested in health and community care. The opportunity to study at Jewish Care’s Employment and Education Centre is open to everyone.

Maria Peters, CEO of Chisholm and Bill Appleby, CEO of Jewish Care.

MAjoRVICtoRIAngoVERnMEnthoMEAnDCoMMunItyCARE CONTRACTThis year, Chisholm was awarded a $5.5 million Victorian Government contract to consult, plan, coordinate, promote and deliver education and training to the entire health and community care (HACC) workforce across Victoria.

The contract, with the Department of Health, has Chisholm organising workforce education and training for paid staff and volunteers delivering services funded by the HACC program. These include supervisors and managers, health assessors, nurses, allied health professionals, community care workers and volunteers.

“This partnership is a fantastic example of Chisholm’s ability to deliver large-scale training in terms of diversity, efficiencies and distance,” said Maria Peters, Chisholm CEO. “We’ve trained almost 1470 people since July, and look forward to continuing this work into 2014.”

As part of the project Chisholm also developed a Victorian HACC Education and Training Service website, which includes HACC training calendars, a searchable all-courses database and an online enrolment facility.

tRAInIngFoRQAtARpEtRolEuMIn 2013, Chisholm began a four year project to provide Qatar Petroleum with a complete range of onshore and offshore training and educational consultancy services.

The project involves the provision of certification and moderation services for delivery of accredited training programs, training facilities and equipment consultancies.

Services will be provided for a range of qualifications at Certificate I, II, III and IV levels in engineering, business and security, with the contract including provision of administrative systems and processes to support delivery. It also includes technical instructor training in the Certificate IV in Training and Assessment.


CooKIng,CultuREAnDMoRENine Chisholm cookery students stepped outside their comfort zone in November and travelled to Vanuatu to learn more about local cuisine, customs and culture.

Funded by the Australian Government’s VET Outbound Mobility Program, the students competed for a place on the tour by performance in class and submitting a project on diversity.

In Vanuatu they worked with local chefs in Port Vila restaurants and resorts, visited fresh food markets, toured local villages and, at the end, cooked a feast (traditional and fusion) to thank their local friends and supporters.

Students were incredibly positive about their experience. They learned a lot about diversity and working with other cultures. They also enjoyed learning about the different ingredients and methodologies used in local cuisine, and are already planning to incorporate elements in their cooking at home. Chisholm staff developed valuable partnerships with hospitality businesses, which will lead to increased international opportunities for students in the future.

Chisholm apprentice chefs spend time with the local children in Vanuatu as part of the Australian Government’s VET Outbound Mobility Program.

tEChnologytAKEStRAInIngIntoThE FUTURE Chisholm has partnered with Advance and Central Gippsland Institutes to develop the Technology Enabled Learning Centre (TELC) network, which will deliver training through the latest voice, video and interactive technologies.

TELCs are a key recommendation from the Gippsland Tertiary Education Council’s plan for improving education and training in Gippsland. They provide an accessible digital learning platform and are critical in broadening course options and increasing access for students.

Chisholm CEO Maria Peters said that Chisholm was privileged to be a partner in the project.

“We all have a common commitment as TAFE institutes to provide educational opportunities to our working partners and communities,” she said. “For us it’s about taking education out to the community through new technology, and providing new learning opportunities for students.”

ExpAnDIngthEhIghER EDuCAtIonoFFERWith over 100 students, Chisholm’s higher education offering grew during 2013 and is set to increase further in the future.

So far, three Chisholm copyrighted degrees have been accredited – the Bachelor of Community Mental Health, Alcohol and Other Drugs, the Bachelor of Interactive Media Design and the Bachelor of Engineering Technology (Mechanical and Manufacturing/Mechatronics). They were all developed in conjunction with industry to ensure their currency and relevance to students’ career paths.

Under licence from La Trobe University, the second and third years of the La Trobe Bachelor of Accounting are being delivered. During 2013, Chisholm negotiated an agreement to deliver the Bachelor of Information Technology in the same way.

And in partnership with Deakin University, Chisholm offers the Bachelor of Early Childhood Education, specifically designed to provide a pathway from advanced diploma through to degree.


tEAChIng hIghlIghtS AutoMotIVE&SupplyChAIn MAnAgEMEnt• Secured industry sponsorship from Penrite Oils, Sidchrome, IVECO,

PPG, Glenmac, Audatex, Dee Beer Paints, I-CAR, BMW, Chrysler and Toyota

• Hosted WorldSkills Australia regional finals in four categories, with Chisholm automotive students winning five medals (including two gold)

• Increased industry training with a range of client companies, including PACCAR/Kenworth Trucks, in Victoria and New South Wales

• Established a heavy vehicle course in Mongolia

• Implemented an automotive light vehicle online learning program for onsite and flexible delivery, planned for 2014 online courses in panel and paint and heavy vehicle, and reshaped forklift training to include online resources

• Established a Warehousing and Logistics Industry Advisory Board to advise the department on strategic directions

buIlDIng&ConStRuCtIon• Commenced a new delivery strategy for the Certificate III in

Carpentry, increasing onsite training and assessment, with strong support from employers and students

• Hosted five construction trainers from Ethiopia on a six-week visit to model Chisholm training methods

BUSINESS SERVICES• Brokered an agreement with the Chifley Business School for

Chisholm to deliver the Chifley Master of Business Administration (MBA) commencing March 2014, the first MBA on offer locally

• Congratulated the first group of students who graduated from Chisholm’s Bachelor of Accounting course, delivered in partnership with La Trobe University

EngInEERIng,ElECtRotEChnology&tElECoMMunICAtIonS• Delivered practical Certificate IV in Engineering and Diploma

of Engineering training to 40 students enrolled in Monash University’s Bachelor of Engineering

• Purchased new industry-standard CNC machines and tensiometer for the polymer testing facility to increase capacity

• Introduced an e-Learning option for the whole theory component of the Certificate III in Electrotechnology

• Entered into a contract with an additional college in Fujian, China, for delivery of CEC programs at Fujian Electric Power College

• Conducted moderation and validation activities for Chisholm qualifications being offered in Qatar for Qatar Petroleum; qualifications include engineering, electrical and security instrumentation

EnVIRonMEnt&MoRnIngton pEnInSulACAMpuS• Successfully introduced VCAL programs to the Mornington

Peninsula campus, giving over 30 students the opportunity to experience a range of trades

• Work commenced on the Southern Mornington Peninsula Trade Training Centre at the Mornington Peninsula campus in Rosebud

• Established a sponsorship deal with Monsanto for the National Precision Growing Centre, a glasshouse that simulates a perfect growing environment

• Won the 2013 Protected Cropping Australia Industry Training Award for programs delivered at the National Precision Growing Centre

FounDAtIonCollEgE• Developed and collaborated with local agencies to provide

a young parents course that continued formal learning and supported the new parents’ experiences and challenges


hAIR,bEAuty&wEllnESS• Commenced development of a shared delivery model for the

Bachelor of Health Science (Dermal Therapies) with Victoria University

• Completed construction of an industry-standard spa training suite that will also operate as a commercial salon in 2014

• Hosted the beauty component of WorldSkills Victoria regional competitions at Berwick campus in November and showcased student work, winning gold (Krystle Harvey), silver (Ella Cross-Payne) and bronze (Skye Woods)

hEAlth&CoMMunItyCARE• Won a $5.5 million tender to deliver HACC training across Victoria

on behalf of the Department of Health; by the end of 2013, 1469 learners had participated in the program

hoSpItAlIty,touRISM&bASSCoASt• Continued to provide 80 per cent of Bass Coast students

with local work experience opportunities, many leading on to employment

• Provided retail skills recognition for workers in all Salvo stores across Western Australia

IntERACtIVEMEDIA&DESIgn• Trained 20 participants from the City of Greater Dandenong

Young Leaders Program in video and design to enable them to complete a range of community projects

• Began the Certificate IV in Photo Imaging with 36 students and planned for expansion into a diploma program in 2014

INTERNATIONAL• Enrolled the first group of international students in the Chisholm

and La Trobe University Bachelor of Accounting

• Marketed business partner packaged offers with Deakin University and La Trobe University that meet new government visa regulations

• Completed three aid projects for African participants (delivery in Australia, Mauritius and South Africa) for AusAID with a very positive response, and compiled a bid for project work in Botswana

• Completed several projects in Ethiopia to support training reform in four trade areas

• Pursued project opportunities in Vietnam, working with their Department of Vocational Training across 26 trade areas

It&CoMputERSyStEMS• Celebrated student achievements, including:

- Advanced Diploma of Computer Systems Engineering student Sam Billings, who was nominated in the City of Greater Dandenong Chamber of Commerce Youth Enterprise Awards

- Advanced Diploma of Information Technology student Robelyn Abano from the Philippines, who received an Australian Government Endeavour Award Scholarship

• Gained registration as a certified VM Ware Training Academy, one of the very few in Victoria, which allows students to extend their qualifications and improve their employability

pluMbIng&wAtER• Established a partnership with South East Water to deliver

two short courses – for civil works employees to streamline installation procedures (Water Centre, Berwick) and for plumbers to adhere to company standards (Frankston campus)

• Commenced delivery of Certificates III, IV and Diploma of Water Operations on site for Queensland Water employees

• Developed the Diploma of Water Operations, the first in Australia, in response to industry demands

• Congratulated Jack Murphy on winning Group Training Apprentice of the Year in the 2013 Master Plumbers Training Awards


tEAChIng hIghlIghtS SEnIoR&tEChnICAlCollEgE• Implemented the Pascifika course to re-engage young people

16–17 from Pacific Islander communities within the region, with two programs completed over the year

• Consolidated all Chisholm senior secondary program (VCE and VCAL) delivery into one business area to improve customer service and pathway options

tEAChIng&lEARnIngQuAlIty• Launched the TELC program, which complements existing

delivery models by providing online interactive learning to students in regional areas

• Delivered an education research project in relation to learning via video conferencing methodologies to Minister Hall

• Established a partnership and conducted industry programs with Victoria Police, State Emergency Services, Melbourne Water and ADP to deliver the Certificate IV in Training and Assessment


Workforce data equivalent full time (EFT) staff

EFT average staffing comparison

2013 2012 2011

Executive Officers 7 11 12

Teaching 567 659 683

PACCT 279 369 426

Others 0 0 0

Total 853 1,039 1,121

Note: The information above represents an average EFT staffing figure for the 2011, 2012 and 2013 calendar years, i.e. the sum of the monthly figures divided by 12.

publICSECtoREMployMEntAnDConDuCtpRInCIplESChisholm’s employment policies and processes are based on the principle of merit, relevant award and statutory requirements, and best practice public sector approaches.

The Institute’s Code of Conduct, which is reviewed annually, provides guidance to all staff on expected behaviour and professional conduct and is based on the Institute values, the Victorian Public Sector Model and other best practice examples. Chisholm is committed to equal opportunity and fair and transparent processes in all human resource management procedures.

gEnERAlStAtEMEntonInDuStRIAlRELATIONSChisholm continues to have regular consultative arrangements in place with both major unions, the Australian Education Union and National Tertiary Education Union. Chisholm also uses the dispute resolution procedures in its Certified Agreements to ensure issues that may arise are addressed appropriately and in a timely manner.

There were no days lost due to industrial action in 2013.

pEoplEAnDDEVElopMEntREPORTSThe People and Development Business Group, comprising Human Resource Management and Occupational Health and Safety, was created following an internal Institute organisation review. A People and Development three-year strategic plan and a one-year business operational plan for 2013 were developed for the new Business Group.

huMAnRESouRCEMAnAgEMEntKey achievements in 2013 included: • development and implementation of the first wave of employee

life cycle management initiatives embracing onboarding, induction, performance management and reward and recognition, creating the platform for development of Chisholm as a high performing organisation

• implementation of an annual award presentation for the Chisholm STARS reward and recognition program, with nominated staff and teams receiving public recognition in front of their peers for the great work undertaken

• implementation of management skill development (the People Leader program) was of great strategic importance and provided managers with improved capability to address people management issues and better manage financial challenges

• development and implementation of monthly pulse check reporting provided the Institute with insight into how staff are experiencing changes taking place, allowing for consideration of strategic responses

• implementation of human resources system and reporting changes that improve manager access to information and enhance human resources data integrity; initiatives implemented will improve manager decision making and lead to improvements in leave liability management.


STATISTICAL OVERVIEwStudent enrolments

2013 2012

Government funded accredited programs 15,656 17,826

Fee for service programs 24,199 21,278

(Less) student enrolments in both government accredited programs and fee for service programs

(1,737) (1,481)

Total net student enrolments 38,118 37,623

Student contact hour delivery

2013 2012

Government funded accredited programs 7,469,096 7,767,502

Fee for service programs 4,447,097 3,216,498

Total student contact hour delivery 11,916,193 10,984,000

Student enrolments by age

Age group 2013 2012

Student enrolments

Per centStudent

enrolmentsPer cent

Under 15 365 1.0% 312 0.8%

15 to 19 12,097 31.7% 11,038 29.3%

20 to 24 7,848 20.6% 7,395 19.7%

25 to 39 8,594 22.5% 8,973 23.8%

40 to 64 8,916 23.4% 9,577 25.5%

65 plus 296 0.8% 323 0.9%

Not stated 2 <0.1% 5 <0.1%

Total 38,118 100.0% 37,623 100.0%

Student enrolments by gender

Gender 2013 2012

Student enrolments

Per centStudent

enrolmentsPer cent

Female 14,640 38.4% 14,590 38.8%

Male 23,476 61.6% 23,033 61.2%

Not stated 2 <0.1%

Total 38,118 100.0% 37,623 100.0%


STATISTICAL OVERVIEwCourse enrolments and student contact hours by campus

Campus2013 2012

Course enrolments*

Per centStudent contact

hoursPer cent

Course enrolments*

Per centStudent contact

hoursPer cent

Dandenong 14,855 24.7% 3,102,326 26.0% 15,468 27.2% 3,317,864 30.2%

Frankston 15,283 25.4% 2,952,961 24.8% 14,896 26.2% 3,341,012 30.4%

Offshore delivery

6,716 11.2% 1,946,865 16.3% 3,677 6.5% 815,072 7.4%

Workplace 13,682 22.7% 1,486,893 12.5% 12,658 22.2% 1,071,322 9.8%

Berwick 4,307 7.2% 1,458,526 12.2% 5,102 9.0% 1,455,901 13.3%

Cranbourne 1,189 2.0% 317,220 2.7% 2,034 3.6% 442,765 4.0%

Mornington Peninsula

1,751 2.9% 264,476 2.2% 1,216 2.1% 250,754 2.3%

Online 1,302 2.2% 181,436 1.5% 629 1.1% 58,616 0.5%

Bass Coast 755 1.3% 102,810 0.9% 752 1.3% 101,208 0.9%

Chisholm @ 311

317 0.5% 102,628 0.9% 514 0.9% 129,486 1.2%

Total 60,157 100.0% 11,916,193 100.0% 56,946 100.0% 10,984,000 100.0%

* Individual students can choose to enrol in multiple campuses. Includes enrolments in Language, Literacy & Numeracy Strategy.


boARDAnD CoMMIttEES

DAVID WILLERSDORF

David is Group General Manager/Director/Company Secretary for the Grenda Corporation Pty Ltd, with over 20 years of experience in this business. He is a member of the Committee for Dandenong, a Fellow of the Certified Practising Accountants of Australia Association and a member of the Australian Institute of Management. David’s key areas of knowledge, skills and experience include financial management, accounting and risk management, and statutory and regulatory compliance.

ROBERT COMELLI

Robert is currently the CEO of Australian Botanical Products Pty Ltd. He was previously the CEO of the Association for Accounting Technicians (Australia) Ltd. He has a strong commercial finance background, holding senior management and CEO positions in a variety of private sector organisations and directorships in public and private companies, including Groups with 20 subsidiaries and turnovers of over $500 million. Robert is a Fellow of CPA Australia, Fellow of the Institute of Public Accountants and Fellow of the Association of Accounting Technicians.

PROFESSOR WENDY CROSS

Wendy’s career has spanned many years in nursing, nursing research and nurse education. She is currently Head of the School of Nursing and Midwifery at Monash University, and was previously in a senior position at Southern Health. Her roles have encompassed practice development, clinical governance, policy development, performance management and appraisal, workforce planning and many other activities. Wendy has been awarded numerous research and teaching grants.

TRACEY DAVIES

Tracey is a Principal at Davies Lawyers, having been a solicitor for more than 23 years. She has represented a wide variety of clients and currently practises in the areas of employment law, industrial relations and commercial litigation. Tracey is a member of the Law Institute of Victoria, Law Institute of Victoria Practice Sections – Litigation Lawyers and Administrative Law & Human Rights and Industrial Relations Society of Victoria.

2013boARDSTEPhEN G. MARkSBoard Chair

Stephen has more than 35 years of experience as a chartered accountant, and he has provided specialist independent probity auditing and advisory services to the public sector for the past 12 years. In addition to his Institute stewardship responsibilities, Stephen is a board member of the St Vincent’s Institute and the audit committee of Origin Youth Health Research Centre. He is also a member of the Victorian Department of Human Services Financial Management Advisory Committee and DMP Asset Management Investment Advisory Committee. Stephen’s extensive finance and public sector experience provides a solid platform for the maintenance of the excellent reputation and ongoing sustainability of Chisholm.

TODD hARTLEY

Todd is the Managing Director of Hilton Manufacturing, a leading manufacturing company in Dandenong South. Todd brings to the Board over 25 years of experience in the manufacturing industry in southern Melbourne, including a broad range of manufacturing networks and associations. Todd’s particular strengths are in commercial enterprise, technology innovation and facility management. In addition to his role at Hilton Manufacturing, Todd also serves as the Treasurer of the South East Melbourne Manufacturing Alliance and is a board member of the Committee for Dandenong. He also holds a number of other positions on manufacturing boards and committees.

JOhN BENNIE

John has been CEO of Greater Dandenong City Council since October 2006. He is a Director of the South East Melbourne Manufacturers’ Alliance and Chair of the Southern Melbourne Regional Development Australia Committee. He was previously CEO of Manningham City Council from 1999 to 2006 and a Board member of South East Development (Melbourne) Area Consultative Committee.


DAVID EDGAR

David is currently a senior level executive as the CEO of Apprenticeship and Traineeship Employment Partners (ATEP), based in Melbourne. David has 17 years’ experience in vocational education, employment and training and the not for profit sector with 13 of those years in senior management in a Group Training Organisation, including management of Registered Training Organisation, Australian Apprenticeship Centre business activities and a range of affiliated government funded initiatives.

DAVID EYNON

David is Executive Director of the Air Conditioning and Mechanical Contractors Association. He has extensive experience in public policy development in connection with skills training, industrial relations and energy efficiency. David is currently director of Australian Construction Industry Forum Ltd, ARBS Exhibitions Ltd, the Joint Plumbing Industry Training Fund Ltd and the Redundancy Central Payments Fund.

GREG hUNT

Until 15/04/2013

Greg Hunt is the Executive Officer of the South East Councils Climate Change Alliance. He was previously Principal at the Zoo Education Service and Education Manager at Melbourne Museum.

LYNDON JOSS

Until 15/04/2013

Lyndon has over 35 years of experience in senior management positions in engineering and manufacturing. He is President of South East Melbourne Manufacturers Alliance and Facilitator South East Networks.

DR BRUCE CARROLL

Until 15/04/2013

Bruce has over 20 years of experience in overseeing policy and strategy in government departments. He is a member of the Southern Metropolitan Regional Council of Adult Community and Further Education.

BARRY JOWETT

Elected Staff Member Until 15/04/2013

Barry works in the Chisholm libraries. He previously held roles as a general manager, director, managing partner and business owner in a range of industries.

LEIGh GRANT

Elected Student Member Until 15/04/2013

Leigh is a Chisholm student who is an elected member of the Board.

MARIA PETERS

Chisholm CEO (Ex-officio)

CEO of Chisholm Institute since 2010, Maria’s previous roles were as Deputy CEO and Executive Director Programs for the Institute. Maria has extensive experience in education, locally and internationally. She has held management positions and had significant experience in delivery performance, professional development and tertiary education across a range of industry sectors.

Co-optEDMEMbERSMEL PECEN Audit and Risk Management

MIChAEL F. SAID Audit and Risk Management

IAN DUFF Audit and Risk Management

ROBERT JOhNSON Resource Management

SOPhIA PETROV Strategic Development and Monitoring


ExECutIVEDIRECtoRSgRoup (SEnIoRMAnAgEMEnttEAM)The Executive Directors Group’s focus is strategic leadership and business development, with day-to-day operations largely managed by middle management under a policy and procedural framework established by the Executive Directors Group under the Board’s delegation framework.

CEO

Maria Peters

Deputy CEO and Executive

Director Educational

Leadership & Student

Experience

Peter harrisonExecutive Director

Human, Health &

Business Services

Malcolm Macpherson

Paul Goudie*

Executive Director

Engineering,

Technology

& Trades

Andrew kong

Executive Director

Youth, Pathways &

Regional Education

Leanne Jenkins

Chief Operating Officer,

Institute Operations

Grant Radford

* Paul Goudie started on 2 December, 2013.


CORPORATE goVERnAnCE

MAnnERoFEStAblIShMEnt AnDthERElEVAntMInIStERThe renewed governance structure of Chisholm Institute (formerly known as Chisholm Institute of Technical and Further Education) was established on 15 April 2013, when the new Chisholm Institute Constitution Order 2013 came into effect.

Changes to the governance structure of Chisholm Institute included:

• a change of name from Chisholm Institute of Technical and Further Education to Chisholm Institute

• the establishment of a new Board structure consisting of nine Directors, comprising:

- a Board Chair (new appointment)

- four ministerial nominee Directors

- four Board nominee Directors

• the establishment of a new governance framework based on the new Constitution

• the requirement to comply with the Minister’s Strategic Planning and Commercial Guidelines.

Throughout 2013, the Board of Chisholm Institute was responsible to the Minister of Higher Education and Skills, the Hon. Peter Hall MLC.

objECtIVES,FunCtIonS, powERSAnDDutIESIn line with the requirements of the Chisholm Institute Constitution Order 2013, the objectives of Chisholm Institute are:

• to facilitate higher education through excellent teaching, innovation and educational leadership that delivers quality outcomes

• to ensure it is sustainable in the medium to long term

• to operate its businesses, delivering educational services and utilising assets that it manages on the state’s behalf as efficiently as possible

• to facilitate increasing opportunities for apprenticeships and traineeships across the relevant Australian industry sectors.

The functions of Chisholm Institute are:

• to provide the communities and industries serviced by the Institute with efficient and effective technical and further education programs and services

• to offer and conduct courses of study leading to the conferral of higher education awards

• subject to the requirements of the Education and Training Reform Act 2006, to operate as a group training organisation that employs apprentices and other trainees and places them with host employers.

The Institute has the power to do all things that are necessary or convenient to be done for or in connection with, or as incidental to, meeting its objectives or performing its functions. However, the powers of Chisholm Institute are subject to, and must be exercised in accordance with, the functions, duties and obligations conferred or imposed on the Institute by:

• the Act and other laws

• the Constitution

• Ministerial and government directions and guidelines under the Act and other legislation, laws and conventions

• the general administrative, social and economic directives and policies established by the Government of Victoria from time to time.

The Chisholm Institute Board must take all reasonable steps for the advancement of the objectives of the Institute, while operating in accordance with the economic and social objectives and public sector policy established from time to time by the Minister. While meeting its objectives, the Board is also required to comply with the Chisholm Institute Constitution and provide all assistance and information to the Minister or his delegates.


boARDoRgAnISAtIonAlChARt1jAnuARy2013–15ApRIl2013The following chart details the organisational arrangements and accountabilities of the Board and the Board Committees for 2013, prior to the establishment of the new Chisholm Institute Constitution on 16 April 2013.

Audit and Risk Management

Committee

Resource Management Committee

The Board of Chisholm Institute of TAFEDavid Willersdorf

(Board Chair)

Responsible MinisterThe Hon. Peter Hall

MP, Minister for Higher Education and Skills

Strategic Development and Monitoring

Committee

Board SecretaryJoe Piper

Committee membershipLyndon Joss (Chairperson)David WillersdorfTracey DaviesMichael SaidMel Pecen

Executive OfficerJohn Buckler

Committee membershipRobert Comelli (Chairperson)David Willersdorf Maria PetersGreg HuntRob JohnsonDavid MuirLeigh Grant

Executive OfficerGrant Radford

Committee membershipDavid Eynon (Chairperson)David WillersdorfWendy CrossBarry JowettMaria PetersDavid Edgar

Executive OfficerPeter Harrison



boARDAnDInStItutECoMMIttEES:RElAtIonShIpS1jAnuARy2013–15 APRIL 2013

OCCUPATIONAL hEALTh AND SAFETY

COMMITTEE

BOARD OF STUDIES

QUALITY MANAGEMENT

COMMITTEE

ODC/CENTRE/DIVISIONAL

ICT STEERING COMMITTEES

REMUNERATIONCOMMITTEE

BO

AR

D C

OM

MIT

TEES

INST

ITU

TE C

OM

MIT

TEES

ChIShOLM DIRECTORS GROUP (CDG)

ChIEF EXECUTIVE OFFICER

Functional relationship

Monitoringrelationship

MEMBERShIPCOMMITTEE

ThE BOARD OF ChIShOLM INSTITUTE OF TAFE

AUDIT AND RISk MANAGEMENT

COMMITTEE

RESOURCE MANAGEMENT

COMMITTEE

STRATEGIC DEVELOPMENT

AND MONITORING COMMITTEE


boARDoRgAnISAtIonAlChARt16ApRIl2013to31DECEMbER2013

Audit and Risk Management

Committee

Infrastructure Committee

The Board of Chisholm Institute

Stephen G. Marks Board Chair

Responsible MinisterThe Hon. Peter Hall

MP, Minister for Higher Education and Skills

Education Committee

Board SecretaryJoe Piper

Committee membersDavid Willersdorf (Chair)Robert ComelliMichael Said (Co-opted)Ian Duff (Co-opted)Stephen G. Marks (Ex-officio)

Executive OfficerPeter Harrison

Committee membersTodd Hartley (Chair)Tracey DaviesJohn BennieRob Johnson (Co-opted)Maria Peters (Ex-officio)Stephen G. Marks (Ex-officio)James Watson (CIO)

Executive OfficerGrant Radford

Committee membersWendy Cross (Chair)David EynonDavid EdgarSophia Petrov (Co-opted)Maria Peters (Ex-officio)Stephen G. Marks (Ex-officio)

Executive Officer Andrew Kong



boARDCoMMIttEESChARt16ApRIl2013to31DECEMbER2013

AUDIT AND RISk MANAGEMENT

COMMITTEE

Delegation of power and functions by Board

EDUCATION COMMITTEE


BOARD COMMITTEE STRUCTURE

INSTITUTE OPERATIONAL COMMITTEE STRUCTURE

INFRASTRUCTURE COMMITTEE


BOARD MEMBERShIP


STR

ATEG

IC IN

TEN

TST

RAT

EGY

DEV

ELO

PM

ENT

INST

ITU

TE O

PER

ATIO

NS

REMUNERATION


ChIShOLM INSTITUTE BOARD

Delegates power and functions to committees

and CEO

ChIEF EXECUTIVE OFFICER

Delegation of power and functions

- All day-to-day operational matters

- human resources and industrial relations

- Financialdelegation(withinagreedlimits)

- Developmentofdraftstrategicplanand

annualbusinessplans

- legislativeandMinisterialorders

- Riskmanagementandcompliance

framework

INSTITUTE OPERATIONAL STRUCTURE


RISKMAnAgEMEnt CoMplIAnCEAttEStAtIonI, Maria Peters, certify that as at 31 December 2013, Chisholm Institute has a risk management framework which is consistent with the AS/NZS 31000:2009 risk management standard.

This framework, along with our internal control system, enables the Board, Executive Directors, management and staff to understand, recognise and manage significant risk exposures.

The Audit and Risk Management Committee has verified this assurance and the risk framework of Chisholm Institute was reviewed and approved at the October 2013 Board meeting.

Maria PetersChief Executive OfficerChisholm Institute

26February2014

Dandenong


SOCIAL RESPONSIBILITY

woRKCoVER/REtuRntowoRKThe number of staff injuries reported for the year totalled 19, which is 35 less than the previous year (54 in 2012). Student reported injuries were also lower, with 73 incidents reported in 2013. It was noted that the decrease in injury numbers has also seen a decline in serious injuries requiring off site medical treatment.

The number of accepted new WorkCover claims for 2013 totalled four; this is half the number of 2012 and 20 per cent of the 2010 claims (20).

Notably, WorkCover performance and management resulted in Chisholm outperforming the industry premium rate, which led to a significant reduction in the premium.

oh&SpRogRAM pERFoRMAnCEInDICAtoRSThe performance of Chisholm’s OH&S program in 2013 was measured against the Institute’s WorkCover premium performance. The Institute’s WorkCover premium for 2013/2014 was assessed as below the industry average with a premium rate of 0.8786% . The Institute’s three year performance is 7.51% better than the industry average in which it operates over the last three years. The affect of this performance is that Chisholm has achieved a 30% saving in WorkCover premium costs for 2013/14.

Chisholm recognises the important role it plays in the communities in which it operates. Chisholm acknowledges that demonstrated social responsibility is a vital contributor to long term business success and community capability. As a Victorian Government operation, Chisholm also plays a key role in the Victorian Government’s commitment to social responsibility.

This commitment is reflected in:

• Chisholm’s commitment to providing accessible programs meeting the learning needs and vocational aspirations of its students

• Chisholm’s commitment to safety, health and the environment in all aspects

• the operation of the Caroline Chisholm Education Foundation.

woRKhEAlth,SAFEty AnDwEllbEIngChisholm considers all workplace injuries to be preventable and strives to ensure that best practice OH&S systems are integrated into business area operations. This is vital in ensuring the health, safety and wellbeing of staff, students, contractors and visitors.

The Institute’s health and safety strategy aims to meet its statutory and employee duty of care obligations and to create a harmonious, productive learning and working environment by providing a workplace free from risks to health and safety.

Key strategies undertaken in 2013 were:

• health and wellbeing initiatives to improve staff health and fitness, including an Institute-wide staff flu vaccination program, health checks, and first aid and mental health first aid training

• active promotion of the Employee Assistance Program to benefit staff, including career transition training and manager assist

• external audit of the OH&S management systems by an external auditor and identification of areas of improvement

• an internal workplace inspection program to identify and address

workplace hazards.

Chisholm’s OH&S Management Program, in conjunction with its Injury Management Program, continues to work towards a reduction in staff injuries (number and severity), workers compensation claims and WorkCover insurance premium while improving the health and welfare of staff at work.

25

20

15

10

5

0 2013 2012 2011 2010


EnVIRonMEntAlSuStAInAbIlItyThe business of Chisholm Institute requires consumption of large amounts of natural resources. Chisholm is committed to reducing its impact on the environment and in 2013 continued the work that commenced in 2007.

Chisholm’s ResourceSmart Strategy covers the following key areas:

• energy

• water

• waste minimisation and recycling

• onsite renewable energy generation

• green purchasing

• built environment design

• transportation

• greenhouse gas emissions

• education for sustainability

• embedding of sustainability throughout our business.

The targets set for 2013 were as follows:

• emission reduction 25 per cent

• energy reduction 25 per cent

• GreenPower purchase 25 per cent

• renewable energy onsite generation 10 per cent

• water reduction 35 per cent

• waste recycled 45 per cent.

Chisholm’s baseline information was calculated for 2007 and the results for 2013 compared with the baseline are tabled in the Environmental Performance section of the Annual Report.

SOCIAL RESPONSIBILITY


Financial and compliance informationFinancial overview 32

Chisholm Institute financial reports and performanceStatements

38

Caroline Chisholm Education Foundation financial report 89

Activitytable 103

Financialperformanceagainstbudget 105

Disclosuresindexandadditionalcompliancereports 106

Abbreviations 127

2013 ANNUAL REPORTFInAnCIAlStAtEMEntSFoRthEyEAREnDED31DECEMbER2013


FINANCIAL OVERVIEw

EARnIngSbEFoREIntERESttAxES AnDAMoRtISAtIon(EbItDA)

EBITDA increased by 183.4% from the prior year.

2013 $’000

2012 $’000 Var

Operating revenues 116,608 127,654 (8.7%)

Operating expenditures 97,338 120,855 (19.5%)

EBITDA 19,270 6,799 183.4%

EBITDA is the key measure of profitability. This measure is the difference between operating revenues and operating expenses.

NET SURPLUSNet surplus increased by 767% from the prior year.

2013 $’000

2012 $’000 Var

EBITDA 19,270 6,799 183%

Depreciation/amortisation 6,859 7,196 (5%)

EBIT 12,411 (397) 3229%

Capital operations 18,256 3,934 364%

30,667 3,538 767%

Net surplus results from the EBITDA, the success of obtaining capital funding from government, depreciation and expenditures from capital grants.

ENTERPRISE REVENUEEnterprise revenue increased by 17.7% from the prior year.

2013 $’000

2012 $’000 Var

Fee for service income 26,502 23,983 11%

Student fees and charges 17,083 12,482 37%

Sale of goods 514 475 8%

Investment income 717 976 (27%)

Other 1,468 1,423 3%

46,284 39,339 17.7%

Enterprise revenue is the operating revenue excluding government contributions.

30.0

20.0

10.0

0.0

40.0

30.0

20.0

10.0

0.0

50.0

40.0

30.0

20.0

10.0

0.0

2009

4.9

2009

8.4

2009

38.8

2010

5.6

2010

21.8

2010

42.8

2011

7.5

2011

6.4

2011

39.4

2012

6.8

2012

3.5

2012

39.3

2013

19.3

2013

30.7

2013

46.3

EBITDA

Net surplus

Enterprise income

$M

$M


FEEFoRSERVICE(FFS)ASA%oF totAlopERAtIngREVEnuE

2013 $’000

2012 $’000 Var

FFS – Government 9,006 8,750 3%

FFS – Int. students 4,805 4,492 7%

FFS – Int. projects 4,395 3,974 11%

FFS – Short courses 1,700 1,576 8%

FFS – Other 6,596 5,191 27%

26,502 23,983 11%

Fee for service revenue is a major component of enterprise revenue. Profitable fee for service revenue is the major source of funding for reinvestment in Chisholm.

25%

20%

15%

10%

5%

0%2009

23%

2010

22%

2011

19%

2012

19%

2013

23%

% Fee for service%


BALANCE ShEET

woRKIngCApItAl

2013 $’000

2012 $’000 Var

Current assets

Cash and cash equivalents 35,893 24,748 45%

Receivables 14,198 9,432 51%

Inventories 107 137 (22%)

Prepayments 1,285 907 42%

Current liabilities

Payables and accruals (12,231) (14,036) 13%

Short term employee benefits (2,333) (2,447) 5%

36,920 18,741 97%

Working capital is a measure of Chisholm’s liquidity (the ability to pay debts as they fall due) in the short term.

nEtASSEtS(EQuIty)Net assets increased by 13% from the prior year.

2013 $’000

2012 $’000 Var

Assets

Current assets 51,483 35,224 46%

Non-current assets 236,040 224,330 5%

Liabilities

Current liabilities (21,452) (23,756) 10%

Non-current liabilities (868) (1,126) 23%

265,204 234,672 13%

Net assets equal Chisholm’s totals assets less its liabilities.

The significant change in financial position is largely due to redundancies at the end of 2012 and increases in capital works related to the two large trade facilities under construction in 2013.

40.0

30.0

20.0

10.0

0.02009

9.4

2010

17.1

2011

18.1

2012

18.7

2013

36.9

Working capital$M

$M

300.0

200.0

100.0

0.02009

190.5

2010

212.3

2011

219.2

2012

234.7

2013

265.2

Net assets




DEClARAtIonbyboARDChAIR,ChIEFExECutIVEoFFICERAnD ChIEFFInAnCEAnDACCountIngoFFICER

We certify that the attached financial statements for Chisholm Institute have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions issued under that legislation, Australian Accounting Standards and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and notes to and forming part of the financial report, presents fairly the financial transactions during the year ended 31 December 2013 and financial position of the Institute as at 31 December 2013.

At the date of signing this financial report, we are not aware of any circumstance that would render any particulars included in the financial report to be misleading or inaccurate. There are reasonable grounds to believe that the Institute will be able to pay its debts as and when they became due and payable.

The Board Chair and the Chief Executive Officer sign this declaration as delegates of, and in accordance with a resolution of, the Board of the Chisholm Institute.

Stephen Marks Board Chair

26February2014

Dandenong


26February2014

Dandenong

Grant RadfordChief Finance and Accounting Officer

26February2014

Dandenong


CoMpREhEnSIVEopERAtIngStAtEMEntFor the year ended 31 December 2013

2013 2012Note $’000 $’000

Continuing operationsIncome from transactionsGovernment contributions – operating 2a(i) 70,324 88,315 Government contributions – capital 2a(ii) 18,804 5,307 Sale of goods and services 2b 44,099 36,940 Interest 2c 717 976 Other income 2d 1,468 1,423 Total income from transactions 135,412 132,961

Expenses from transactionsEmployee benefits 3a 67,767 91,804 Depreciation and amortisation 3b 6,859 7,196 Grants and other transfers 3c 4 8 Supplies and services 3d 20,603 19,961 Other operating expenses 3e 10,170 10,362 Total expenses from transactions 105,403 129,331

Net result from transactions (net operating balance) 30,009 3,630

Other economic flows included in net resultNet gain/(loss) on non-financial assets 4a 7 (24)Net gain/(loss) on financial instruments and statutory receivables/payables 4b (30) 1 Net gain/(loss) arising from revaluation of long service leave liability 4c 581 (302)Net gain/(loss) arising from revaluation of annual leave liability 4c 100 233 Total other economic flows included in net result 658 (92)

Net result 30,667 3,538

Other economic flows – other comprehensive incomeItems that will not be reclassified to net resultARR adjustment on disposal of assets 14 (136) 11,979

Comprehensive result 30,531 15,517

The above comprehensive operating statement should be read in conjunction with the accompanying notes.


BALANCE ShEETAs at 31 December 2013

2013 2012Note $’000 $’000

AssetsFinancial assetsCash and deposits 5 35,893 24,748 Receivables 6 14,198 9,432 Total financial assets 50,091 34,180

Non-financial assetsInventories 7 107 137 Property, plant and equipment 9 234,942 223,845 Intangibles 10 1,098 485 Other non-financial assets 8 1,285 907 Total non-financial assets 237,432 225,374

Total assets 287,523 259,554

LiabilitiesPayables 11 6,989 11,850 Provisions 12 10,089 10,846 Other liabilities 13 5,242 2,186 Total liabilities 22,320 24,882

Net assets 265,203 234,672

EquityAccumulated surplus/(deficit) 14b 126,949 96,282 Reserves 14c 52,867 53,003 Contributed capital 14a 85,387 85,387 Net worth 265,203 234,672

Commitments for expenditure 17Contingent assets and contingent liabilities 19

The above balance sheet should be read in conjunction with the accompanying notes.


StAtEMEntoFChAngESInEQuItyFor the year ended 31 December 2013

Equity at 1 Jan 2013

Total comprehensive

result

Transactions with owners in

their capacity as owners

Equity at 31 Dec

2013

Note $’000 $’000 $’000 $’000

Accumulated surplus/(deficit) 96,282 30,667 - 126,949 Accumulated surplus/(deficit) at the end of the year

96,282 30,667 - 126,949

Contribution by owners 85,387 - - 85,387 Contribution by owners at the end of the year

85,387 - - 85,387

Physical assets revaluation reserve 53,003 (136) - 52,867 53,003 (136) - 52,867

Total equity at the end of the year 234,672 30,531 - 265,203

Equity at 1 Jan 2012

Total comprehensive

result

Transactions with owners in

their capacity as owners

Equity at 31 Dec

2012

Note $’000 $’000 $’000 $’000

Accumulated surplus/(deficit) 92,744 3,538 - 96,282 Accumulated surplus/(deficit) at the end of the year

92,744 3,538 - 96,282

Contribution by owners 85,387 - - 85,387 Contribution by owners at the end of the year

85,387 - - 85,387

Physical assets revaluation reserve 41,024 11,979 - 53,003 41,024 11,979 - 53,003

Total equity at the end of the year 219,155 15,517 - 234,672

The above statement of changes in equity should be read in conjunction with the accompanying notes.


CAShFlowStAtEMEntFor the year ended 31 December 2013

2013 2012Note $’000 $’000

Cash flows from operating activitiesReceiptsGovernment contributions – operating 67,604 90,660 Government contributions – capital 18,804 5,307 User fees and charges 46,260 36,565 Goods and services tax recovered from the Australian Taxation Office 3,854 3,651 Interest received 717 919 Other receipts 2,012 1,924 Total receipts 139,251 139,026

PaymentsPayments to employees (68,617) (94,924)Payments to suppliers (33,493) (31,887)Goods and services tax paid (7,297) (6,585)Total payments (109,407) (133,396)

Net cash provided by/(used in) operating activities 15 29,843 5,630

Cash flows from investing activitiesPayments for non-financial assets (18,705) (7,324)Proceeds from sale of non-financial assets 7 65 Net cash provided by/(used in) investing activities (18,698) (7,259)

Net increase/(decrease) in cash and cash equivalents 11,145 (1,629)

Cash and cash equivalents at the beginning of the financial year 24,748 26,377 Cash and cash equivalents at the end of the financial year 5 35,893 24,748

The above cash flow statement should be read in conjunction with the accompanying notes.


notEStothEFInAnCIAlStAtEMEntSFor the year ended 31 December 2013

CONTENTS

Note Accompanying note

1 Statement of significant accounting policies

2 Income from transactions

3 Expenses from transactions

4 Other economic flows included in net result

5 Cash and cash equivalents

6 Receivables

7 Inventories

8 Other non-financial assets

9 Property, plant and equipment

10 Intangible assets

11 Payables

12 Provisions

13 Other liabilities

14 Equity

15 Cash flow information

16 Ex-gratia payments

17 Commitments for expenditure

18 Leased assets

19 Contingent assets and contingent liabilities

20 Economic dependency

21 Subsequent events

22 Remuneration of auditors

23 Superannuation

24 Key management personnel disclosures

25 Related parties

26 Institute details

27 Financial instruments



1. Statement of significant accounting policies

The annual financial statements represent the audited general purpose financial statements and notes of Chisholm Institute (Chisholm).

1.01 Statement of compliance

These general purpose financial statements have been prepared in accordance with the Financial Management Act 1994 (FMA) and applicable Australian Accounting Standards (AAS) which include Interpretations, issued by the Australian Accounting Standards Board (AASB). In particular, they are presented in a manner consistent with the requirements of the AASB 1049 Whole of Government and General Government Sector Financial Reporting.

For the purposes of preparing financial statements, Chisholm is classed as a not-for-profit entity. Where appropriate, those AAS paragraphs applicable to not-for-profit entities have been applied.

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

1.02 Basis of preparation

The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

These financial statements are presented in Australian dollars, the functional and presentation currency of Chisholm.

In the application of AAS, judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

The estimates and associated assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements made by management in the application of AASs that have significant effects on the financial statements and estimates, with a risk of material adjustments in the next year, are disclosed throughout the notes to the financial statements.

These financial statements have been prepared in accordance with the historical cost convention. Historical cost is based on the fair values of the consideration given in exchange for assets.

Exceptions to the historical cost convention include:

• non-financial physical assets which, subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair value

• the fair value of an asset other than land is generally based on its depreciated replacement value

• certain liabilities that are calculated with regard to actuarial assessments

• available-for-sale investments which are measured at fair value with movements reflected in equity until the asset is derecognised.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 31 December 2013 and the comparative information presented for the year ended 31 December 2012.

The following is a summary of the material accounting policies adopted by Chisholm in the preparation of the financial statements. The accounting policies have been consistently applied unless otherwise stated.



1.03 Reporting entity

The financial statements cover Chisholm as an individual reporting entity. Chisholm is a statutory body corporate, established pursuant to an act made by the Victorian Government under the Education and Training Reform Act 2006 Section 3.1.12 4(a).

Its principal address is:Chisholm Institute 121 Stud RoadDandenong Vic 3175

1.04 Basis of consolidation

Chisholm operates a controlled entity, the Caroline Chisholm Education Foundation. All transactions related to the operation of the Caroline Chisholm Education Foundation are reported separately and not consolidated due to its size and operations being less than 5% of Chisholm’s.

1.05 Events after reporting date

Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between Chisholm and other parties, the transactions are only recognised when the agreement is irrevocable at or before balance date. Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting date and before the date the statements are authorised for issue, where those events provide information about conditions which existed at the reporting date. Note disclosure is made about events between the reporting date and the date the statements are authorised for issue where the events relate to a condition which arose after the reporting date and which may have a material impact on the results of subsequent years.

1.06 Goods and services tax (GST)

Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable (i.e. on a gross basis). The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.

Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

Commitments and contingent assets or liabilities are also presented on a gross basis.

1.07 Income from transactions

Amounts disclosed as income are, where applicable, net of returns, allowances and duties and taxes. Revenue is recognised for each of Chisholm’s major activities as follows:

Government contributions

Government contributions are recognised as revenue in the period when Chisholm gains control of the contributions. Control is recognised upon receipt or notification by relevant authorities of the right to receive a contribution for the current period.



Sale of goods and services

(i) Student fees and charges

Student fees and charges revenue is recognised by reference to the percentage of services provided. Where student fees and charges revenue has been clearly received in respect of courses or programs to be delivered in the following year, any non-refundable portion of the fees is treated as revenue in the year of receipt and the balance as revenue in advance.

(ii) Fee for service

Fee for service revenue is recognised by reference to the percentage completion of each contract, i.e. in the reporting period in which the services are rendered. Where fee for service revenue of a reciprocal nature has been clearly received in respect of programs or services to be delivered in the following year, such amounts are disclosed as revenue in advance.

(iii) Revenue from sale of goods

Revenue from sale of goods is recognised by Chisholm when:(a) the significant risks and rewards of ownership of the goods have been transferred to the buyer(b) Chisholm retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold(c) the amount of revenue can be reliably measured(d) it is probable that the economic benefits associated with the transaction will flow to Chisholm(e) the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Interest income

Interest income from cash, short term deposits and investments is brought to account on a time proportional basis taking into account interest rates applicable to the financial assets.

Net realised and unrealised gains and losses on the revaluation of investments do not form part of income from transactions, but are reported as part of income from other economic flows in the net result or as unrealised gains and losses taken direct to equity, forming part of the total change in net worth in the comprehensive result.

Other income

Rental income is recognised on a time proportional basis and is brought to account when Chisholm’s right to receive the rental is established.

Fair value of assets received free of charge or for nominal consideration

Contributions of resources received free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated.

1.08 Expenses from transactions

Employee benefits

Expense for employee benefits are recognised when incurred, except for contributions in respect of defined benefit plans.

Retirement benefit obligations

(i) Defined contribution plan

Contributions to defined contribution plans are expensed when they become payable.



(ii) Defined benefit plans

The amount charged to the comprehensive operating statement in respect of superannuation represents the contributions made by Chisholm to the superannuation plan in respect of current services of current Chisholm staff. Superannuation contributions are made to the plans based on the relevant rules of each plan.

Chisholm does not recognise any deferred liability in respect of the plan(s) because Chisholm has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as and when they fall due. The Department of Treasury and Finance recognises and discloses the state’s defined benefit liabilities in its finance report.

Depreciation and amortisation

Depreciation

Depreciation is provided on property, plant and equipment, including freehold buildings but excluding land. Depreciation is generally calculated on a straight-line basis so as to write off the net cost or other re-valued amount of each asset over its expected useful life to its estimated residual value. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period.

Depreciation methods and rates are used for each class of depreciable assets.

Class of assets Method Rates

Buildings Straight line 1.69% – 20.00% (2012: 1.64% – 14.28%)

Plant and equipment Straight line 10.50% – 34.00% (2012: 10.00% – 34.00%)

Motor vehicles Straight line 15.00% (2012: 15.00%)

Library collections Straight line 20.00% (2012: 20.00%)

Land improvements Straight line 2.50% – 6.67% (2012: 2.50% – 6.67%)

Leasehold improvements Straight line 19.35% (2012: 19.35%)

The assets’ residual values and useful lives are reviewed and adjusted if appropriate on an annual basis.

As part of the land and building valuation in 2012 and annual review of the useful lives of property, plant and equipment in 2013, the useful life of some buildings have been extended or reduced. The effect of this change in estimate has resulted in an overall decrease of the depreciation expense for the year ended 31 December 2013 by $64,494. This is immaterial in comparison to the total depreciation expense, net result, and total value of property, plant and equipment.

Amortisation

Intangible assets with finite lives are amortised on a straight line basis over the assets’ useful lives. Amortisation begins when the asset is available for use, that is, when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each annual reporting period. In addition, an assessment is made at each reporting date to determine whether there are indicators that the intangible asset concerned is impaired. If so, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount.

Grants and other transfers

Grants and other transfers to third parties are recognised as an expense in the reporting period in which they are paid or payable.

Other operating expenses

Supplies and services

Supplies and services expenses are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any inventories held for distribution are expensed when distributed.



Fair value of assets provided free of charge or for nominal consideration

Resources provided free of charge or for nominal consideration are recognised at their fair value.

1.09 Other economic flows included in net result

Other economic flows measure the change in volume of value of assets or liabilities that do not result from transactions.

Net gain/(loss) on non-financial assets

Net gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses from revaluations, impairments, and disposals of all physical assets and intangibles.

Disposal of non-financial assets

Any gain or loss on disposal of non-financial assets is recognised at the date control of the asset is passed to the buyer and is determined after deducting from the proceeds the carrying value of the asset at the time.

Impairment of assets

Assets are assessed annually for indications of impairment, except for:

• inventories• financial assets• investment property that is measured at fair value • non-current assets held for sale.

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by a charge to the comprehensive operating statement, except to the extent that the write down can be debited to an asset revaluation reserve amount applicable to that class of asset.

If there is an indication that there has been a change in the estimate of an asset’s recoverable amount since the last impairment loss was recognised, the carrying amount shall be increased to its recoverable amount. This reversal of the impairment loss occurs only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years.

It is deemed that, in the event of the loss or destruction of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made.

The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash flows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell. It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made.

Net gain/ (loss) on financial instruments

Net gain/(loss) on financial instruments includes realised and unrealised gains and losses from revaluations of financial instruments that are designated at fair value through profit or loss or held-for-trading, impairment and reversal of impairment for financial instruments at amortised cost, and disposals of financial assets.

Revaluation of financial instruments at fair value

The revaluation gain/(loss) on financial instruments at fair value excludes dividends or interest earned on financial assets, which is reported as part of income from transactions.



Impairment of financial assets

Bad and doubtful debts are assessed on a regular basis. Those bad debts considered as written off by mutual consent are classified as a transaction expense. The allowance for doubtful receivables and bad debts not written off by mutual consent are adjusted as ‘other economic flows’.

Other gains/(losses) from economic flows

Other gains/(losses) from other economic flows include the gains or losses from reclassifications of amounts from reserves and/or accumulated surplus to net result, and from the revaluation of the present value of the annual and long service leave liabilities due to changes in the bond interest rates.

1.10 Financial assets

Cash and deposits

Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and those highly liquid investments with an original maturity of three months or less, which are held for the purpose of meeting short term cash commitments rather than for investment purposes, and which are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

For cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as borrowings on the balance sheet.

Receivables

Receivables consist of:

• statutory receivables, which include predominantly amounts owing from the Victorian Government and GST input tax credits recoverable

• contractual receivables, which include mainly debtors in relation to goods and services, loans to third parties, accrued investment income, and finance lease receivables.

Receivables that are contractual are classified as financial instruments. Statutory receivables are not classified as financial instruments.

Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest method, less an allowance for impairment.

A provision for doubtful receivables is made when there is objective evidence that the debts may not be collected and bad debts are written off when identified.

Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when: • the rights to receive cash flows from the asset have expired or• Chisholm retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without

material delay to a third party under a ‘pass through’ arrangement or• Chisholm has transferred its rights to receive cash flows from the asset and either: (a) has transferred substantially all the risks and rewards of the asset or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.



Where Chisholm has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of Chisholm’s continuing involvement in the asset.

At the end of each reporting period, Chisholm assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual review for impairment.

Bad and doubtful debts for financial assets are assessed on a regular basis. Those bad debts considered as written off by mutual consent are classified as a transaction expense. Bad debts not written off by mutual consent and the allowance for doubtful receivables are classified as ‘other economic flows’ in the net result.

The amount of the allowance is the difference between the financial asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate.

In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets.

1.11 Leases

A lease is a right to use an asset for an agreed period of time in exchange for payment.

Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance infrastructure leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership from the lessor to the lessee. All other leases are classified as operating leases.

Finance leases

Chisholm as lessor

Amounts due from lessees under finance leases are recorded as receivables. Finance lease receivables are initially recorded at amounts equal to the present value of the minimum lease payments receivable plus the present value of any unguaranteed residual value expected to accrue at the end of the lease term. Finance lease receipts are apportioned between periodic interest income and reduction of the lease receivable over the term of the lease in order to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

Chisholm as lessee

At the commencement of the lease term, finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the lease property or, if lower, the present value of the minimum lease payment, each determined at the inception of the lease. The lease asset is depreciated over the shorter of the estimated useful life of the asset or the term of the lease.

Minimum finance lease payments are apportioned between reduction of the outstanding lease liability and periodic finance expense which is calculated using the interest rate implicit in the lease and charged directly to the comprehensive operating statement.



Operating leases

Chisholm as lessee

Operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the balance sheet.

All incentives for the agreement of a new or renewed operating lease are recognised as an integral part of the net consideration agreed for the use of the leased asset, irrespective of the incentive’s nature or form or the timing of payments.

In the event that lease incentives are received to enter into operating leases, the aggregate cost of incentives are recognised as a reduction of rental expense over the lease term on a straight-line basis, unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.12 Non-financial assets

Inventories

Inventories include goods and other property held either for sale or for distribution at no or nominal cost in the ordinary course of business operations.

Inventories, including land held for sale, are measured at the lower of cost and net realisable value.

Cost for all other inventory is measured on the basis of weighted average cost.

Inventories acquired for no cost or nominal considerations are measured at current replacement cost at the date of acquisition.

Non-current physical assets classified as held-for-sale, including disposal group assets

Non-financial physical assets (including disposal group assets) are treated as current and classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use.

This condition is regarded as met only when:

• the asset is available for immediate use in the current condition • the sale is highly probable and the asset’s sale is expected to be completed within 12 months from the date of classification.

These non-financial physical assets, related liabilities and financial assets are measured at the lower of carrying amount and fair value less costs to sell, and are not subject to depreciation or amortisation.

Property, plant and equipment

All non-financial physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment.

The initial cost for non-financial physical assets under a finance lease is measured at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease.

Where an asset is received for no or nominal consideration, the cost is the asset’s fair value at the date of acquisition.

The fair value of infrastructure systems and plant, equipment and vehicles is normally determined by reference to the asset’s depreciated replacement cost, or where the infrastructure is held by a for-profit entity, the fair value may be derived from estimates of the present value of future cash flows. For plant, equipment and vehicles, existing depreciated historical cost is generally a reasonable proxy for depreciated replacement cost because of the short lives of the assets concerned.



Certain assets are acquired under finance leases, which may form part of a service concession arrangement.

The cost of constructed non-financial physical assets includes the cost of all materials used in construction, direct labour on the project, and an appropriate proportion of variable and fixed overheads.

Where an asset is received for no or nominal consideration, the cost is the asset’s fair value at the date of acquisition.

For the accounting policy on impairment of non-financial physical assets refer to Note on Impairment of non-financial assets.

Library collections

Library collections are measured at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.

Capitalisation threshold

Chisholm’s capitalisation threshold is $5,000 exclusive of GST.

Leasehold improvements

The cost of a leasehold improvement is capitalised as an asset and depreciated over the remaining term of the lease or the estimated useful life of the improvements, whichever is the shorter.

Non-financial physical assets constructed by Chisholm

The cost of non-financial physical assets constructed by Chisholm includes the cost of all materials used in construction, direct labour on the project, and an appropriate proportion of variable and fixed overheads.

Revaluations of non-current physical assets

Non-current physical assets measured at fair value are revalued in accordance with FRDs issued by the Minister for Finance. This revaluation process normally occurs every five years, based upon the asset’s Government Purpose Classification, but may occur more frequently if fair value assessments indicate material changes in values. Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value.

Revaluation increases are credited directly to equity in the revaluation surplus, except to the extent that an increase reverses a revaluation decrease in respect of that class of property, plant and equipment, previously recognised as an expense (other economic flows) in the net result, the increase is recognised as income (other economic flows) in determining the net result.

Revaluation decreases are recognised immediately as expenses (other economic flows) in the net result, except to the extent that a credit balance exists in the revaluation surplus in respect of the same class of property, plant and equipment, they are debited to the revaluation reserve.

Revaluation increases and revaluation decreases relating to individual assets within a class of property, plant and equipment are offset against one another within that class but are not offset in respect of assets in different classes.

When revalued assets are sold, it is Chisholm policy to transfer the amounts included in other reserves in respect of these assets to accumulated funds.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Non-current physical assets constructed by Chisholm

The cost of non-current assets constructed by Chisholm includes the cost of all materials used in construction, direct labour on the project, and an appropriate proportion of variable and fixed overheads.



Research and development costs

Expenditure on research activities is recognised as an expense in the period in which it is incurred. Where no internally-generated intangible asset can be recognised, development expenditure is recognised as an expense in the period as incurred.

An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following are demonstrated:

(a) the technical feasibility of completing the intangible asset so that it will be available for use or sale(b) the intention to complete the intangible asset and use or sell it(c) the ability to use or sell the asset(d) how the intangible asset will generate probable future economic benefits(e) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset(f) the ability to measure reliably the expenditure attributable to the intangible asset during its development.

Where no internally-generated intangible asset can be recognised, development expenditure is recognised as an expense in the period as incurred.

Intangible assets are measured at cost less accumulated amortisation and impairment, and are amortised on a straight-line basis over their useful lives as follows:

2013 2012

Capitalised software development cost (years) 4 4

1.13 Liabilities

Payables

Payables consist of:

• contractual payables, such as accounts payable, and unearned income including deferred income from concession arrangements. Accounts payable represent liabilities for goods and services provided to Chisholm prior to the end of the financial year that are unpaid, and arise when Chisholm becomes obliged to make future payments in respect of the purchase of those goods and services

• statutory payables, such as goods and services tax and fringe benefits tax payables.

Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost. Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from a contract.

Provisions

Provisions are recognised when Chisholm has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.



Employee benefits

The calculation of employee benefits includes all relevant on-costs and is calculated as follows at reporting date.

(i) Wages, salaries and annual leave

Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of employee services up to the reporting date, classified as current liabilities and measured at their nominal values.

Liabilities that are not expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits as current liabilities, measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

(ii) Long service leave

Liability for long service leave (LSL) is recognised in the provision for employee benefits. The provision for LSL has been revalued using a wage inflation rate of 3.56% and a discount rate of 4.28%.

Current liability – unconditional LSL representing seven years of service is disclosed as a current liability even when Chisholm does not expect to settle the liability within 12 months because it will not have the unconditional right to defer settlement of the entitlement should an employee take leave within 12 months.

The components of this current liability are measured at:• present value – component that is not expected to be settled within 12 months• nominal value – component that is expected to be settled within 12 months.

Non-current liability – conditional LSL representing less than seven years is disclosed as a non-current liability. There is an unconditional right to defer settlement of the entitlement until the employee has completed the requisite years of service.

This non-current LSL liability is measured at present value. Gain or loss following revaluation of the present value of non-current LSL liability due to changes in bond interest rates is recognised as an ‘other economic flow’.

(iii) Termination benefits

Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. Chisholm recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to present value.

Employee benefits on-costs

Employee benefits on-costs (payroll tax, workers compensation, superannuation, annual leave and LSL accrued while on LSL taken in service) are included in the provision for employee benefits.

Performance payments

Performance payments for TAFE executive officers are based on a percentage of the annual salary package provided under the contract of employment. A liability is provided for under the term of the contracts at reporting date and paid out in the next financial year.

Onerous contracts

An onerous contract is considered to exist where Chisholm has a contract under which the unavoidable cost of meeting the contractual obligations exceed the economic benefits estimated to be received. Present obligations arising under onerous contracts are recognised as a provision to the extent that the present obligation exceeds the economic benefits estimated to be received.



1.14 Commitments

Commitments include those operating, capital and other outsourcing commitments arising from non-cancellable contractual or statutory sources and are disclosed at their nominal value and inclusive of the GST payable.

1.15 Contingent assets and liabilities

Contingent assets and liabilities are not recognised in the balance sheet, but are disclosed by way of a note (refer Note 19) and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of the GST receivable or payable respectively.

1.16 Equity

Contributed capital

Funding that is in the nature of contributions by the State Government are treated as contributed capital when designated in accordance with UIG Interpretation 1038 Contribution by Owners Made to Wholly-Owned Public Sector Entities. Commonwealth capital funds are not affected and are treated as income.

1.17 Foreign currency transactions

Functional and presentation currency

Chisholm’s financial statements are presented in Australian dollars which is the entity’s functional and presentation currency.

Transactions and balances

Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined.

Exchange differences arising on the translation of monetary items are recognised in the income statement in the period in which they arise, except where deferred in equity as a qualifying cash flow or net investment hedge.

Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent that the gain or loss is directly recognised in equity; otherwise the exchange differences are recognised in the comprehensive operating statement.

1.18 Materiality

In accordance with Accounting Standard AASB1031 Materiality, accounting policies need only be identified in the summary of accounting policies where they are considered ‘material’. Accounting policies will be considered material if their omission, misstatement or non-disclosure has the potential, individually or collectively, to:

(a) influence the economic decisions of users taken on the basis of the financial statements(b) affect the discharge of accountability by the management or governing body of the entity.

1.19 Rounding of amounts

Amounts in the financial statements have been rounded to the nearest thousand dollars, unless otherwise stated.

1.20 Comparative information

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.



1.21 Change in accounting policy

AASB 13 Fair Value Measurement

Chisholm has applied AASB 13 Fair Value Measurement for the first time in the current year. AASB 13 establishes a single source of guidance for fair value measurements. The scope of AASB 13 is broad; the fair value measurement requirements of AASB 13 apply to both financial instrument items and non-financial instrument items for which other A-IFRS require or permit fair value measurements and disclosures about fair value measurements, except for share-based payment transactions that are within the scope of AASB 2 Share-based Payment, leasing transactions that are within the scope of AASB 17 Leases, and measurements that have some similarities to fair value but not fair value (e.g. net realisable value for the purposes of measuring inventories or value in use for impairment assessment purposes).

AASB 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions. Fair value under AASB 13 is an exit price regardless of whether that price is directly observable or estimated using another valuation technique. Also, AASB 13 includes extensive disclosure requirements.

AASB 13 requires prospective application from 1 January 2013. In addition, specific transitional provisions were given to entities such that they need not apply the disclosure requirements set out in the standard in comparative information provided for periods before the initial application of the standard. In accordance with these transitional provisions, Chisholm has not made any new disclosures required by AASB 13 for the 2012 comparative period (please see Note 9 and 27 disclosures). Other than the additional disclosures, the application of AASB 13 has not had any material impact on the amounts recognised in the financial statements.

AASB 119 Employee Benefits

In the current year, Chisholm has applied AASB 119 Employee Benefits (as revised in 2011) and the related consequential amendments for the first time.

AASB 119 (as revised in 2011) changes the accounting for defined benefit plans and termination benefits. The most significant change relates to the accounting for changes in defined benefit obligations and plan assets. This change has no impact on Chisholm because it has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance recognises and discloses the state’s defined benefit liabilities in its financial statements.

In addition, AASB 119 also changes the definition of short term employee benefits. This change has no impact on Chisholm because Chisholm has always defined short term employee benefits as benefits expected to be settled wholly before 12 months after the end of the reporting period in which the employees render the related service; and measured the provision for annual leave on a discounted basis.



1.22 New and revised AASBs in issue but not yet effective

Certain new accounting standards and interpretations have been published that are not mandatory for the 31 December 2013 reporting period.

As at 31 December 2013, the following standards and interpretations applicable to Chisholm had been issued but were not mandatory for financial year ending 31 December 2013. Chisholm has not, and does not intend to, adopt these standards early.

Amending pronouncements and errata

Outline of amendment Application date of standard

Impact on financial statements

AASB 9 Financial Instruments

This standard simplifies requirements for the classification and measurement of financial assets resulting from Phase 1 of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement (AASB 139 Financial Instruments: Recognition and Measurement).

1 January 2015 Subject to AASB’s further modifications to AASB 9, together with the anticipated changes resulting from the staged projects on impairments and hedge accounting, details of impacts will be assessed.

AASB 10 Consolidated Financial Statements

This standard forms the basis for determining which entities should be consolidated into an entity’s financial statements. AASB 10 defines ‘control’ as requiring exposure or rights to variable returns and the ability to affect those returns through power over an investee, which may broaden the concept of control for public sector entities.The AASB has issued an exposure draft ED 238 Consolidated Financial Statements – Australian Implementation Guidance for Not-for-Profit Entities that explains and illustrates how the principles in the standard apply from the perspective of not-for-profit entities in the private and public sectors.This standard forms the basis for determining which entities should be consolidated into an entity’s financial statements. AASB 10 defines ‘control’ as requiring exposure or rights to variable returns and the ability to affect those returns through power over an investee, which may broaden the concept of control for public sector entities.The AASB has issued an exposure draft ED 238 Consolidated Financial Statements – Australian Implementation Guidance for Not-for-Profit Entities that explains and illustrates how the principles in the standard apply from the perspective of not-for-profit entities in the private and public sectors.

1 January 2014 Subject to AASB’s final deliberations on ED 238 and any modifications made to AASB 10 for not-for-profit entities, the entity will need to re-assess the nature of its relationships with other entities, including those that are currently not consolidated.


Amending pronouncements and errata

Outline of amendment Application date of standard

Impact on financial statements

AASB 11 Joint Arrangements

This standard deals with the concept of joint control, and sets out a new principles-based approach for determining the type of joint arrangement that exists and the corresponding accounting treatment. The new categories of joint arrangements under AASB 11 are more aligned to the actual rights and obligations of the parties to the arrangement.

1 January 2014 The AASB have finalised deliberations and any modifications made to AASB 11 for not-for-profit entities; the entity will need to assess the nature of arrangements with other entities in determining whether a joint arrangement exists in light of AASB 11.

AASB 12 Disclosure of

Interests in Other Entities

This standard requires disclosure of information that

enables users of financial statements to evaluate

the nature of, and risks associated with, interests

in other entities and the effects of those interests

on the financial statements. This standard replaces

the disclosure requirements in AASB 127 Separate

Financial Statements and AASB 131 Interests in Joint

Ventures.

The exposure draft ED 238 proposes to add some

implementation guidance to AASB 12, explaining and

illustrating the definition of a ‘structured entity’ from

a not-for-profit perspective.

1 January 2014 Not-for-profit entities are not permitted to

apply this standard prior to the mandatory

application date.

Impacts on the level and nature of the

disclosures will be assessed based on the

eventual implications arising from AASB 10,

AASB 11 and AASB 128 Investments in

Associates and Joint Ventures.

AASB 127 Separate Financial Statements

This revised standard prescribes the accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements.

1 January 2014 Not-for-profit entities are not permitted to apply this standard prior to the mandatory application date. The AASB is assessing the applicability of principles in AASB 127 in a not-for-profit context. As such, the impact will be assessed after the AASB’s deliberation.

AASB 128 Investments in Associates and Joint Ventures

This revised standard sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.

1 January 2014 The impact of this standard will need to be assessed in line with the final deliberations by the AASB on the application of this standard to not-for-profit entities.

AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounts Standard arising from Reduced Disclosure Requirements

These standards set out the tiers of financial reporting and the reduced disclosure framework.

1 January 2014 The Victorian Government is currently

considering the impacts of Reduced

Disclosure Requirements for certain

public sector entities, and has not decided

if Reduced Disclosure Requirements will be

implemented in the Victorian

public sector.

AASB 1055 Budgetary

Reporting

This standard extends the scope of budgetary

reporting that is currently applicable for the whole

of government and general government sector to

not-for-profit entities within the general government

sector, provided that these entities present separate

budget to the Parliament.

1 January 2014 This standard is not applicable as no budget

disclosure is required.




In addition to the new standards above, the AASB has issued a list of amending standards that are not effective for the 2013 reporting period (as listed below). In general, these amending standards include editorial and references changes that are expected to have insignificant impacts on public sector reporting. The two AASB Interpretations in the list below are also not effective for the 2013 reporting period and considered to have insignificant impacts on public sector reporting.

• AASB 2011-3 Amendments to Australian Accounting Standards – Orderly Adoption of Changes to the ABS GFS Manual and Related Amendments• AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements• AASB 2011-6 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements• AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards• AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13• AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Other Comprehensive Income [AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039, 1049]• AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011)• AASB 2011-11 Amendments to AASB 119 (September 2011) arising from Reduced Disclosure Requirements• AASB 2011-12 Amendments to Australian Accounting Standards arising from Interpretation 20• 2012-1 Amendments to Australian Accounting Standards – Fair Value Measurement – Reduced Disclosure Requirements• 2012-2 Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial Assets and Financial Liabilities• 2012-3 Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities• 2012-5 Amendments to Australian Accounting Standards arising from Annual Improvements 2009–2011 Cycle• 2012-7 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements• 2013-1 Amendments to AASB 1049 – Relocation of Budgetary Reporting Requirements• 2013-3 Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets• Interpretation 21 Levies

1.23 Critical accounting judgements and key sources of estimation uncertainty

In the application of Chisholm’s accounting policies, judgements, estimates and assumptions about the carrying amounts of assets and liabilities must be made. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Key sources of estimation uncertainty

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Fair value measurements and valuation processes

Some of Chisholm’s assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or a liability Chisholm uses market-observable data to the extent it is available. Where Level 1 inputs are not available, Chisholm engages third party qualified valuers to perform the valuation.

Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities is summarised below and at Notes 9 and 27. In addition, the following table provides an analysis of assets and liabilities that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.



• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Assets/ liabilities measured at fair value

Fair value as at Fair value hierarchy

Valuation technique(s) and key assumptions

Significant unobservable input(s)

Relationship of unobservable inputs to fair value

31/12/2013 31/12/2012

1 Assets – $AUD Liabilities – $AUD

Assets – $AUD Liabilities – $AUD

Level 1 Quoted bid prices (unadjusted) in an active market for identical assets or liabilities that the entity can access at the measurement date.

NA NA



Level 2 Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.

NA NA

Depreciated replacement cost as applied to non-specialised assets.



Level 3 Depreciated replacement cost. Specialised assets, estimates made on replacement cost of asset

The higher the construction cost, the higher the fair value.

Critical judgements in applying accounting policies

The following are the critical judgement apart from those involved estimations that Chisholm has made in the process of applying the accounting policies and that have the most significant effect on the amounts recognised in the financial statements:

• discount rates applied to material balances• useful lives of personal protective equipment (PPE).



2013 2012Note $’000 $’000

2. Income from transactions

(a) Grants and other transfers Government financial assistance(i) Government contributions – operatingRecurrent contributions 1,604 18,951 Contestable revenue 59,772 60,248 Other contributions 8,948 9,116 Total government contributions – operating 70,324 88,315

(ii) Government contributions – capitalCommonwealth capital 6,976 3,468 State capital 11,828 1,839 Total government contributions – capital 18,804 5,307 Total government financial assistance 89,128 93,622

(b) Sale of goods and servicesStudent fees and charges 17,083 12,482 Rendering of servicesFee for service – government 9,006 8,750 Fee for service – international operations – onshore 4,805 4,492 Fee for service – international operations – offshore 4,395 3,974 Fee for service – other 8,296 6,767 Total rendering of services 26,502 23,983 Other non-course fees and chargesSale of goods 514 475 Total income from sale of goods and services 44,099 36,940

(c) InterestInterest on bank deposits 717 976

(d) Other incomeRental income 436 528 Donations, bequests and contributions 7 3 Scholarships 11 29 Other 1,014 863 Total other income 1,468 1,423



2013 2012Note $’000 $’000

3. Expenses from transactions

(a) Employee benefitsSalaries, wages, overtime and allowances 56,662 73,153 Superannuation 4,973 6,455 Payroll tax 3,029 4,133 Workers compensation 670 898 Long service leave 997 1,342 Annual leave 565 764 Termination benefits 852 4,984 Other 19 75 Total employee benefits 67,767 91,804

(b) DepreciationBuildings 4,517 5,039 Plant and equipment 1,431 1,505 Motor vehicles 101 109 Library collections 159 182 Land improvements 59 38 Leasehold improvements 340 229 Total depreciation 6,607 7,102 Software 252 94 Total depreciation and amortisation 6,859 7,196

(c) Grants and other transfersGrants and subsidies to apprentices and trainees 4 8

(d) Supplies and servicesPurchase of supplies and consumables 3,619 4,242 Communication expenses 1,089 1,304 Contract and other services 5,524 5,793 Cost of goods sold/distributed (ancillary trading) 42 76 Building repairs and maintenance 2,477 2,374 Other financing costs (other than interests) 110 116 Minor tools and equipment 97 245 Equipment below capitalisation threshold 555 1,365 Fees and charges 7,090 4,446 Total supplies and services 20,603 19,961



2013 2012Note $’000 $’000

(e) Other operating expensesGeneral expensesMarketing and promotional expenses 1,495 2,537 Utilities 1,755 1,759 Audit fees and services 158 175 Staff development 298 334 Travel and motor vehicle expenses 1,758 2,378 Other expenses 3,070 1,607 Total general expenses 8,534 8,790

Operating lease rental expenses 1,636 1,572 Total other operating expenses 10,170 10,362

4. Other economic flows included in net result(a) Net gain/(loss) on non-financial assets (including PPE and intangible assets)Net gain/(loss) on disposal of physical assets 7 (24)Total net gain/(loss) arising from non-financial assets 7 (24)

(b) Net gain/(loss) on financial instruments and statutory receivables/payable of1:Loans and receivables (30) 1 Total net gain/(loss) on financial instruments (30) 1

(c) Other gains/(losses) from other economic flowsNet gain/(loss) arising from revaluation of LSL liabilities 581 (302)Net gain/(loss) arising from revaluation of annual leave liabilities 100 233 Total other gains/(losses) from other economic flows 681 (69)Total other economic flows included in net result 658 (92)1 Including increase/(decrease) in provision for doubtful debts and bad debts from other economic flows – refer to Note 1.09

5. Cash and cash equivalentsCash at bank and on hand 6,191 2,521 Deposits at call 29,702 22,227 Total cash and cash equivalents 35,893 24,748

(a) Reconciliation of cash at the end of the yearThe above figures are reconciled to cash at the end of the financial year as shown in the statement of cash flows as follows:Balances as above 35,893 24,748 Balances as per cash flow statement 35,893 24,748

(b) Cash at bank and on handCash at bank is bearing floating interest rates between 2.13% and 2.38% (2012: 2.63% and 3.63%)

(c) Deposits at callThe deposits are bearing floating interest rates between 2.45% and 2.95% (2012: 3.20% and 4.90%)



2013 2012Note $’000 $’000

6. ReceivablesCurrent receivablesContractualTrade receivables 1,421 1,827 Provision for doubtful trade receivables (a) (41) (23)Other debtors 3,085 1,397 Revenue receivable 9,733 6,231 Total contractual receivables 14,198 9,432

Total current receivables 14,198 9,432 The average credit period on sales of goods is 21 days. No interest is charged on receivables for the first 21 days from the date of the invoice or thereafter.

(a) Movement in the provision for doubtful trade receivablesBalance at the beginning of the year (23) (13)Reversal of unused provision recognised in net result 4 10 Increase in provision recognised in net result (41) (23)Reversal of provision for uncollectable receivables written off during the year 19 3 Balance at the end of the year (41) (23)

(b) Ageing analysis of contractual receivablesRefer to Note 27 for the ageing analysis of contractual receivables

(c) Nature and extent of risk arising from contractual receivablesRefer to Note 27 for a review of the nature and extent of risk arising from contractual receivables

7. InventoriesSupplies and consumables – at cost 107 137 Total current inventories 107 137

8. Other non-financial assetsTotal current other non-financial assetsPrepayments 1,285 907 Total other non-financial assets 1,285 907



9. Property, plant and equipment

2013 Land BuildingsConstruction

in progressPlant and

equipmentMotor

vehicles LibraryLand imp.

Leasehold imp. Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

As at 1 Jan 2013

Cost 2,569 2,569

Valuation 45,057 166,099 - 19,630 772 2,669 1,276 1,758 237,261

Accumulated depreciation

- - - (12,955) (507) (2,294) - (229) (15,985)

Opening net book amount

45,057 166,099 2,569 6,675 265 375 1,276 1,529 223,845

Year ended 31 Dec 2013

Opening net book amount

45,057 166,099 2,569 6,675 265 375 1,276 1,529 223,845

Additions 17,209 513 12 107 17,841

Disposals (136) (418) (16) (570)

Depreciation write-back 418 16 434

Transfer to buildings 7 (7) -

Depreciation (4,517) (1,431) (101) (159) (59) (340) (6,607)

Closing net book amount

45,057 161,453 19,771 5,757 176 323 1,217 1,189 234,942

At 31 Dec 2013 -

Cost 19,771 1,758 21,529

Valuation 45,057 165,970 - 19,725 768 2,775 1,276 - 235,571

Accumulated depreciation

- (4,517) - (13,968) (592) (2,453) (59) (569) (22,158)

Net book amount 45,057 161,453 19,771 5,757 176 323 1,217 1,189 234,942

Footnote

1 The useful lives of assets as stated in Note 1 are used in the calculation of depreciation as shown in Note 3.2 Property, plant and equipment include all operational assets.

(a) Valuations of property, plant and equipment

Fair value assessments have been performed at 31 December 2013 for all classes of assets. This assessment demonstrated that fair value was materially similar to carrying value, and therefore a full revaluation was not required this year. The next scheduled full revaluation for Chisholm will be conducted in 2017.

The fair value of the freehold land was determined based on the market comparable approach that reflects recent transaction prices for similar properties. The fair value of the buildings was determined using the cost approach that reflects the cost to a market participant to construct assets of comparable utility and age, adjusted for obsolescence. There has been no change to the valuation technique during the year.



Details of Chisholm’s land and buildings and information about the recurring fair value measurement hierarchy as at 31 December 2013 are as follows:

2013

Level 1 Level 2 Level 3 Fair value as at 31/12/13

AUD ‘000 AUD ‘000 AUD ‘000 AUD ‘000

A campus in Dandenong that contains:

• freehold land 12,422 12,422

• Crown land 385 385

• buildings used solely for educational purposes 63,344 63,344

• buildings used for communal purposes 5,224 5,224

A campus in Frankston that contains:


• Crown land 2,054 2,054



A campus in Cranbourne that contains:


• Crown land - -



A campus in Berwick that contains:


• Crown land - -



A campus in Rosebud that contains:


• Crown land - -



A campus in Bass Coast that contains:

• freehold land - -

• Crown land 768 768


• buildings used for communal purposes - -

There were no transfers between Level 1 and Level 2 during the year.



Land BuildingsConstruction

in progressPlant and

equipmentMotor

vehicles LibraryLand imp.

Leasehold imp. Total2012

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

As at 1 Jan 2012

Cost 1,170 1,170

Valuation 33,910 180,738 19,484 839 2,593 896 - 238,460

Accumulated depreciation (12,513) (12,410) (458) (2,112) (73) - (27,566)

Opening net book amount 33,910 168,225 1,170 7,074 381 481 823 - 212,064

Year ended 31 Dec 2012

Opening net book amount 33,910 168,225 1,170 7,074 381 481 823 - 212,064

Additions 5,805 1,101 - 76 12 6,994

Disposals (1,043) (67) - - - (1,110)

Net revaluation increments/decrements

11,147 352 479 11,978

Depreciation write-back 961 60 1,020

Transfer to buildings 2,561 (2,561) -

Transfer to leasehold improvements

(1,758) 1,758 -

Transfer to plant and equipment (88) 88 -

Depreciation (5,039) (1,505) (109) (182) (38) (229) (7,102)

Closing net book amount 45,057 166,099 2,569 6,675 265 375 1,276 1,528 223,845

At 31 Dec 2012

Cost 2,569 2,569

Valuation 45,057 166,099 - 19,630 772 2,669 1,276 1,758 237,261

Accumulated depreciation - - - (12,955) (507) (2,294) - (229) (15,985)

Net book amount 45,057 166,099 2,569 6,675 265 375 1,276 1,528 223,845



10. Intangible assets

Software Total2013$’000 $’000

As at 1 Jan 2013Cost 579 579 Accumulated amortisation and impairment (94) (94)Net book amount 485 485 Year ended 31 Dec 2013Opening net book amount 485 485 Additions from internal developments 865 865 Disposals - Impairment losses charged to net result -

Amortisation charge 1 (252) (252)Closing net book amount 1,098 1,098

Software Total2012$’000 $’000

As at 1 Jan 2012Cost 260 260 Accumulated amortisation and impairment (12) (12)Net book amount 248 248 Year ended 31 Dec 2012 - Opening net book amount 248 248 Additions from internal developments 331 331 Disposals - Impairment losses charged to net result - Amortisation charge 1 (94) (94)Closing net book amount 485 485

1 Amortisation charged is reported as an expense from transactions in the comprehensive operating statement.

Chisholm has capitalised software development expenditure for the upgrade of its Strata software. The carrying amount of the capitalised software development expenditure is $1.1 million (2012: $0.5 million). Its useful life is four years and will be fully amortised in 2017.



2013 2012Note $’000 $’000

11. PayablesCurrent ContractualSupplies and services 5,105 2,701Amounts payable to governments and agencies 389 6,298

StatutoryGST payable 638 752Group tax payable 547 1,587FBT payable 45 56Other taxes payable 265 456Total current payables 6,989 11,850

(a) Foreign currency riskThe carrying amounts of the entity’s payables are denominated in the following currency: Australian dollars 6,989 11,850

Notes

1. The average credit period is 30 days. No interest is charged on the other payables for the first 30 days from the date of the invoice or thereafter.

2. For an analysis of the sensitivity of payables to foreign currency risk refer to Note 27.

Maturity analysis of contractual payables

Refer to Note 27 for maturity analysis of contractual payables.



2013 2012Note $’000 $’000

12. ProvisionsCurrent provisions expected to be settled within 12 monthsEmployee benefitsAnnual leave 1,161 1,292Long service leave 932 964Performance payments 190 140Time off in lieu 50 51Subtotal 2,333 2,447

Current provision expected to be settled after 12 monthsAnnual leave 675 776Long service leave 6,213 6,497Subtotal 6,888 7,273Total current provisions 9,221 9,720

Non-current provisionsLong service leave 868 1,126Total non-current provisions 868 1,126Total provisions 10,089 10,846

Movement in provisionsMovement in provisions during the financial year are set out below:Carrying amount at the start of the year 10,846 14,576Additional provisions recognised 1,611 2,228Amounts used (1,687) (6,027)Increase/(decrease) due to remeasurement (681) 69Carrying amount at the end of the year 10,089 10,846

13. Other liabilitiesCurrentRevenue in advance 5,242 2,186Total current other liabilities 5,242 2,186

Maturity analysis of other liabilitiesRefer to Note 27 for maturity analysis of other liabilities.



2013 2012Note $’000 $’000

14. Equity(a) Contributed capitalBalance at 1 January 85,387 85,387 Capital contributions - -Balance at 31 December 85,387 85,387

(b) Accumulated surplus/(deficit)Balance at 1 January 96,282 92,744 Net result for the year 30,667 3,538 Balance at 31 December 126,949 96,282

(c) ReservesComposition of reservesPhysical asset revaluation surplus 52,867 53,003 Balance at the end of the year 52,867 53,003

Total equity 265,203 234,672

Movement in reservesAsset revaluation reserve – LandBalance at 1 January 31,482 20,335 Revaluation increment on non-current asset - 11,147 Balance at 31 December 31,482 31,482

Asset revaluation surplus – BuildingsBalance at 1 January 21,521 20,689 Revaluation increment on non-current asset 832Revaluation (decrement) on non-current asset (136) -Balance at 31 December 21,385 21,521



2013 2012Note $’000 $’000

15. Cash flow information

Reconciliation of operating result after income tax to net cash flows from operating activities

Net result for the year 30,667 3,538

Non-cash flows in operating resultDepreciation and amortisation of non-financial assets 6,859 7,196 Net gain/(loss) on sale of non-financial assets (7) 24

Movements in operating assets and liabilitiesDecrease/(increase) in trade receivables (4,766) (4,630)Decrease/(increase) in inventories 30 25 Decrease/(increase) in other assets (378) 109 Increase/(decrease) in payables (1,805) 3,098 Increase/(decrease) in provisions (757) (3,730)Net cash flows provided by operating activities 29,843 5,630

16. Ex-gratia payments

Chisholm made a total of $13,882 in ex-gratia payments during 2013 (2012:$16,746) to one former employee upon termination of employment.

17. Commitments for expenditure

Capital commitments

Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follow:

Payable:Within one year 19,979 617 Later than one year but not later than five years 4,763 411 Total capital expenditure commitments 24,742 1,028 GST reclaimable on the above 2,249 93 Net capital commitments 22,493 935

Operating lease commitments

Operating lease commitments in relation to leases contracted for at the reporting date but not recognised as liabilities are as follow:

Payable:Within one year 1,588 1,699 Later than one year but not later than five years 1,343 1,585 Total lease commitments 2,931 3,284 GST reclaimable on the above 266 299 Net operating lease commitments 2,665 2,985



Other expenditure commitments

Expenditure commitments for maintenance services in existence at reporting date but not recognised as liabilities are as follow:

2013 2012Note $’000 $’000

Payable:Within one year 5,077 4,977 Later than one year but not later than five years 2,512 7,446 Total other expenditure commitments 7,589 12,423 GST reclaimable on the above 690 1,129 Net other expenditure commitments 6,899 11,294

Remuneration commitments

Commitments for the payment of salaries and other remuneration under long term employment contracts in existence at reporting date but not recognised as liabilities are as follow:

Payable:Within one year 14,593 12,534 Later than one year but not later than five years 7,928 10,947 Total remuneration commitments 22,521 23,481

18. Leased assets

Non-cancellable operating lease receivables

Receivable:Within one year 227 351 Later than one year but not later five years 314 537 Total lease receivables 541 888 GST payable on the above 49 81 Net operating lease receivables 492 807

Chisholm leases out certain land, buildings and equipment, which are excess to current requirements at current market rates.

19. Contingent assets and contingent liabilities

There were no contingent assets as at 31 December 2013 (2012: nil) that may have had a material effect on the financial operations of Chisholm.

Contingent liabilities as at 31 December 2013 amount to $187,824 (2012: $187,824) and relates to a performance bond bank guarantee issued in favour of Qatar National Bank for Qatar Petroleum.

20. Economic dependency

Chisholm has substantial economic dependency on government operating and capital contributions.



21. Subsequent events

No matters or circumstances have arisen since the end of the reporting period which significantly affected or may significantly affect the operations of Chisholm, the results of those operations, or the state of affairs on Chisholm in future financial years.

22. Remuneration of auditors

2013 2012Note $’000 $’000

Remuneration of Victorian Auditor-General’s Office for: Audit of the Chisholm Institute financial statements 60 59 Audit of the Caroline Chisholm Education Foundation financial statements 3 3 Remuneration of other auditors 95 113 Total remuneration of auditors 158 175

23. Superannuation

Chisholm contributes to both defined benefit and defined contribution plans. In accordance with accounting policy 1.13 Chisholm does not recognise any defined benefit liabilities. Contributions are included as part of employee benefits in the comprehensive operating statement.

The name and details of the major superannuation funds and contributions made by Chisholm are as follows:

Paid contribution for the yearDefined benefit plans:State Superannuation Fund – revised and new 835 752 Total defined benefit plans 835 752

Defined contribution plans:VicSuper 3,811 4,155 Other 1,723 1,677 Total defined contribution plans 5,534 5,832

Total paid contribution for the year 6,369 6,584

Contribution outstanding at year endDefined benefit plans:State Superannuation Fund – revised and new - 124 Total defined benefit plans - 124

As at 31 December 2013 there were no loans to Chisholm from any funds (2012: nil).



24. key management personnel disclosures

Responsible persons related disclosures

In accordance with the directions of the Minister for Finance under the Financial Management Act 1994, the following disclosures are made for the responsible Ministers and responsible Members of the Board.

(i) Minister

The relevant Minister is the Hon. Peter Hall MP, Minister for Higher Education and Skills. Remuneration of the Ministers is disclosed in the financial statements of the Department of Premier and Cabinet. Other relevant interests are declared in the Register of Members’ Interests, which is completed by each member of the Parliament.

(ii) (a) Members of the Chisholm Board

Name Category of appointment Relevant periodStephen G. Marks (Chair) Ministerial Appointment 16/04/2013 – 31/12/2013David Willersdorf Ministerial Nominee Director 01/01/2013 – 31/12/2013Tracey Davies Ministerial Nominee Director 01/01/2013 – 31/12/2013Wendy Cross Board Nominee Director 01/01/2013 – 31/12/2013Lyndon Joss Ministerial Industry Member 01/01/2013 – 15/04/2013Bruce Carroll Ministerial Industry Member 01/01/2013 – 15/04/2013Robert Comelli Ministerial Nominee Director 01/01/2013 – 31/12/2013David Eynon Ministerial Nominee Director 01/01/2013 – 31/12/2013David Edgar Board Nominee Director 01/01/2013 – 31/12/2013Greg Hunt Co-Opted Member 01/01/2013 – 15/04/2013Barry Jowett Elected Staff Member 01/01/2013 – 15/04/2013Leigh Grant Elected Student Member 01/01/2013 – 15/04/2013John Bennie Board Nominee Director 01/09/2013 – 31/12/2013Todd Hartley Board Nominee Director 01/06/2013 – 31/12/2013Maria Peters Chief Executive Officer 14/01/2013 – 08/04/2013Peter Harrison Chief Executive Officer (Acting) 01/01/2013 – 13/01/2013

09/04/2013 – 14/04/2013

(b) Other Board Committee members

Name Board Committee Relevant periodMel Pecen Audit and Risk Management Committee 01/01/2013 – 15/04/2013Michael Said Audit and Risk Management Committee 01/01/2013 – 31/12/2013Robert Johnson Resource Management Committee/Infrastructure Committee 01/01/2013 – 31/12/2013Ian Duff Audit and Risk Management Committee 01/07/2013 – 31/12/2013Sophia Petrov Strategic Development and Monitoring Committee/Education

Committee01/01/2013 – 31/12/2013



(iii) Executive officers

The following persons also had authority and responsibility for planning, directing and controlling the activities of Chisholm during the financial year:

Name Centre/Division Relevant periodMaria Peters Chief Executive Officer 01/01/2013 – 31/12/2013Peter Harrison Deputy Chief Executive Officer 01/01/2013 – 31/12/2013Grant Radford Executive Director, Institute Operations (Chief Operating Officer) 01/01/2013 – 31/12/2013Andrew Kong Executive Director, Engineering, Technology & Trades 01/01/2013 – 31/12/2013Malcolm Macpherson Executive Director, Human, Health & Business Services 01/01/2013 – 31/12/2013Paul Goudie Executive Director, Human, Health & Business Services 02/12/2013 – 31/12/2013Leanne Jenkins Executive Director, Youth, Pathways & Regional Education 01/01/2013 – 31/12/2013Ian McAllister Executive Director, Growth & Development 01/01/2013 – 24/05/2013Margot Stevenson Executive Director, People & Development 01/01/2013 – 16/05/2013

Remuneration of Board members

This includes remuneration received, or due and receivable from Chisholm in connection with the management of Chisholm. This includes termination payments and bonuses paid at the end of contracts.

2013 2012Note $’000 $’000

Remuneration of Board members 276 322

Note 1. Due to the change in the composition of the Board which took effect on the 15 April, the CEO is included in the remuneration of Board members from the 1 January to the 14 April 2013 only.

Income range

The number of Board members whose remuneration from Chisholm was within the specified bands are as follows:

2013 2012$0 3 3 Less than $10,000 3 8 $10,000 – $19,999 3 - $20,000 – $29,999 3 - $30,000 – $39,999 1 - $40,000 – $49,999 1 - $70,000 – $79,999 1 - $280,000 – $289,999 - 1 Total number of Board members 15 12

Note

1. The total number of Board members at any time during the year was 12, however due to the change in the composition of the Board some Board members resigned and were replaced (refer to 24 (ii) (a) above).



Executive officers’ remuneration

2013 2012Note $’000 $’000

Base remuneration of executive officers 1,079 1,542 Total remuneration of executive officers 1,278 2,302

Income range

The number of executive officers whose total remuneration exceeded $100,000 during the financial year are shown in their relevant income bands. The base remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits.

2013 2013 2012 2012Base Total Base Total

$10,000 – $19,999 1 1 - -$50,000 – $59,999 1 - - -$60,000 – $69,999 1 - - -$80,000 – $89,999 - 1 - -$100,000 – $109,999 - - 2 -$110,000 – $119,999 - - 1 -$120,000 – $129,999 - 1 - -$130,000 – $139,999 - - 2 -$140,000 – $149,999 3 - 2 -$150,000 – $159,999 - 2 2 1$160,000 – $169,999 1 - 1 2$170,000 – $179,999 2 1 - 2$180,000 – $189,999 - 2 1 1$190,000 – $199,999 - 1 - 1$200,000 – $209,999 - - - 1$250,000 – $259,999 - - - 2$330,000 – $339,999 - - - 1Total number of executive officers 9 9 11 11Total annualised employee equivalent (AEE)(a) 6.5 6.5 9.6 9.6

(a) Annualised employee equivalent is based on working 38 ordinary hours per week over the reporting period.

2013 2012Note $’000 $’000

Executive officers’ personnel compensationShort term employee benefits 1,079 1,649 Post-employment benefits 108 141 Other long term benefits - 5 Termination benefits 91 507 Total key management personnel compensation 1,278 2,302



(iv) Payments to other personnel

The number of contractors charged with significant management responsibilities is disclosed within the $10,000 expense band. These contractors are responsible for planning, directing or controlling, directly or indirectly, the entity’s activities.

The change in total expenses from the 2012 to 2013 reporting period was mainly driven by transition planning being undertaken by the entity in the 2013 reporting period.

Expense band Total expenses (exclusive of GST)2013 2012

No. No.$110,000 – $119,000 - 1$160,000 – $169,000 1 -$170,000 – $179,000 1 -Total expenses ($’000) 342 113

25. Related parties

(a) key management personnel

Disclosures relating to executives are set out in Note 24.

(b) Other related party transactions

2013 2012Note $’000 $’000

Creditor – Caroline Chisholm Education Foundation (CCEF) 168 48

Related party, CCEF revenueAdministration charge 6 6

Related party, CCEF expenditureDonations 89 109 Resources provided free of charge 103 90 Total related party, CCEF expenditure 192 199

26. Chisholm details

The registered office of and principal place of business of Chisholm is: Chisholm Institute121 Stud Road Dandenong Vic 3175



27. Financial instruments

Financial risk management

(i) Financial risk management objectives

Chisholm’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. Chisholm’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of Chisholm by adhering to principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity.

Compliance with policies and exposure limits is reviewed by management on a continuous basis. Chisholm does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

Chisholm uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and credit risk, ageing analysis for credit risk and data analysis in respect of investment portfolios to determine market risk.

Chisholm’s treasury function provides services to its business units, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of Chisholm through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk and fair value interest rate risk), credit risk and liquidity risk.

(ii) Financial risk exposures and management

Chisholm’s financial instruments consist mainly of deposits with banks, local money market instruments, short term investments, accounts receivables and payables and leases.

The main risks Chisholm is exposed to through its financial instruments are market risk, foreign currency risk, price risk, funding risk, interest rate risk, credit risk and liquidity risk.

(iii) Categorisation of financial instruments

Carrying amount of financial instruments by category:

Note Category2013 $’000

2012 $’000

Financial assets

Cash and deposits 5 Cash 35,893 24,748

Receivables 6, (a) Loans and receivables 14,198 9,432

Financial liabilities

Creditors and accruals 11, 13 Financial liabilities 10,737 11,185



Net holding gain/(loss) on financial instruments by category:

Note Category2013 $’000

2012 $’000

Financial assets

Cash and deposits 5 Cash - -

Receivables 6, (a) Loans and receivables - 30 1


Creditors and accruals 11, 13 Financial liabilities - -

(a) Receivables and payables disclosed here exclude statutory receivables and statutory payables.

Market risk

Chisholm in its daily operations is exposed to a number of market risks. Market risks relate to the risk that market rates and prices will change and that this will have an adverse effect on the operating result and/or net worth of Chisholm.

The Board ensures that all market risk exposure is consistent with Chisholm’s business strategy and within the risk tolerance of Chisholm. Regular risk reports are presented to the Board.

There has been no significant change in Chisholm’s exposure, or its objectives, policies and processes for managing market risk or the methods used to measure this risk from the previous reporting period.

Foreign currency risk

Chisholm does not have any foreign currency bank accounts denominated in foreign currency at 31 December 2013.

The amount of trade receivables denominated in foreign currency at 31 December 2013 is immaterial.

There has been no significant change in Chisholm’s exposure, or its objectives, policies and processes for managing foreign currency risk or the methods used to measure this risk from the previous reporting period.

Price risk

Chisholm is exposed to price risk in respect of changes to the market price of investments.

There has been no significant change in Chisholm’s exposure, or its objectives, policies and processes for managing price risk or the methods used to measure this risk from the previous reporting period.

Interest rate risk

Interest rate risk arises from the potential for a change in interest rates to change the expected net interest earnings in the current reporting period and in future years. Similarly, interest rate risk also arises from the potential for a change in interest rates to cause a fluctuation in the fair value of the financial instruments.

The objective is to manage the rate risk to achieve stable and sustainable net interest earnings in the long term. This is managed predominately through a mixture of short term and longer term investments.



Interest rate movements have not been sufficiently significant during the year to have an impact on Chisholm’s year end result.

Chisholm’s exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities, both recognised and unrecognised at balance date, are set out in the financial instrument compositions and maturity analysis table.

Funding risk

Funding risk is the risk of over reliance on a funding source to the extent that a change in that funding source could impact on the operating result for the current year and future years.

Chisholm manages funding risk by continuing to diversify and increase funding from commercial activities, both domestically and off shore.

There has been no significant change in Chisholm’s exposure, or its objectives, policies and processes for managing funding risk or the methods used to measure this risk from the previous reporting period.

Credit risk

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in a loss to Chisholm.

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance sheet and notes to the financial statements.

There is no material amounts of collateral held as security at 31 December 2013.

Credit risk is reviewed regularly by the Financial Services department. It arises from exposure to customers as well as through certain deposits with financial institutions.

The Financial Services department monitors credit risk by actively assessing the rating quality and liquidity of counter parties and Chisholm seeks to mitigate credit risk by ensuring:

• only banks and financial institutions with an ‘AAA’ rating are utilised

• all potential non-student customers are rated for credit worthiness taking into account their size, market position and financial standing

• customers that do not meet Chisholm’s credit policies may only purchase in cash or using recognised credit cards.

Chisholm does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into by Chisholm.

The trade receivables balance at 31 December 2013 and 31 December 2012 do not include any counter parties with external credit ratings.

Liquidity risk

Ultimate responsibility for liquidity risk management rests with Chisholm’s governing body, which has built an appropriate liquidity risk management framework for the management of the short, medium and long term funding and liquidity requirements. Chisholm manages liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

There has been no significant change in Chisholm’s exposure, or its objectives, policies and processes for managing liquidity risk or the methods used to measure this risk from the previous reporting period.



Summarised sensitivity analysis

The following table summarises the sensitivity of Chisholm’s financial assets and financial liabilities to interest rate risk and credit risk:

Interest rate risk-0.50% 1.00%

Carrying amount

Result Equity Result Equity

31 December 2013 $’000 $’000 $’000 $’000 $’000Financial assetsCash and deposits 35,893 (179) (179) 359 359Receivables1 14,198Financial liabilitiesPayables1 10,737

Total increase/(decrease) (179) (179) 359 359

Interest rate risk-0.50% 1.00%

Carrying amount

Result Equity Result Equity

31 December 2012 $’000 $’000 $’000 $’000 $’000Financial assetsCash and cash equivalents 24,748 (124) (124) 247 247Receivables1 9,432Financial liabilitiesPayables1 11,185

Total increase/(decrease) (124) (124) 247 247

1 Receivables and payables disclosed here as financial instruments exclude statutory receivable and statutory payables.



(iv) Financial instrument composition and interest rate exposure

The tables below reflect the undiscounted contractual settlement terms for financial instruments of a fixed period of maturity, as well as management’s expectations of the settlement period for all other financial instruments. Additionally, the total amount of financial assets disclosed excludes statutory receivables. Due to the aforementioned factors, the amounts below may not reconcile to the balance sheet.

Weighted average

effective rate

Fixed interest

rate

Floating interest

rate

1 to 6 months

6 to 12 months

Over 12 months

Non- interest bearing

Total carrying amount

2013 $’000 $’000 $’000 $’000 $’000 $’000 $’000Financial assetsCash and deposits Cash on hand 9 9Cash at bank 2.21% 6,181 6,181Deposits at call 2.68% 29,702 29,702ReceivablesTrade debtors 1,421 1,421Other debtors 12,777 12,777Total financial assets 35,883 14,208 50,090Financial liabilitiesTrade and other payablesCreditors and accruals (10,737) (10,737)Total financial liabilities (10,737) (10,737)

Weighted average

effective rate

Fixed interest

rate

Floating interest

rate

1 to 6 months

6 to 12 months

Over 12 months



2012 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Financial assets

Cash and deposits

Cash on hand 10 10

Cash at bank 3.09% 2,511 2,511

Deposits at call 4.17% 22,227 22,227

Receivables

Trade debtors 1,827 1,827

Other debtors 7,605 7,605

Total financial assets 24,738 9,442 34,180


Trade and other payables

Creditors and accruals (11,185) (11,185)

Total financial liabilities (11,185) (11,185)



(v) Ageing analysis of financial assets

There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The following table discloses the contractual maturity analysis for Chisholm’s financial assets and financial liabilities.

Carrying amount

Not past due and not impaired

Maturity datesImpaired financial assets

1 – 3

months

3 months –

1 year1 – 5 years

$’000 $’000 $’000 $’000 $’000 $’0002013 financial assetsReceivables: Trade receivables 1,380 569 578 231 2 41Other receivables 12,818 12,818 - - - -Total financial assets 14,198 13,387 578 231 2 41

2013 financial liabilitiesPayables:Trade and other payables 10,737 10,737 - - - -Total financial liabilities 10,737 10,737 - - - -

2012 financial assetsReceivables:Trade receivables 1,804 921 675 176 32 23 Other receivables 7,628 7,628 - - - -Total financial assets 9,432 8,549 675 176 32 23

2012 financial liabilitiesPayables:Trade and other payables 11,185 11,185 - - - -Total financial liabilities 11,185 11,185 - - - -

Fair value estimation

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.

Due to the short term nature of the current receivables and payables, their carrying value is assumed to approximate their fair value. Based on credit history it is expected that the receivables that are neither past due nor impaired will be received when due.

For other assets and other liabilities the fair value approximates their carrying value. Financial assets where the carrying amount exceeds fair value have not been written down as Chisholm intends to hold these assets to maturity.



The carrying amounts and aggregate net fair values of financial assets and liabilities at balance date are:

Total carrying amount as per the balance sheet

Net fair value

2013 2012 2013 2012

$’000 $’000 $’000 $’000

Financial assetsCash at bank and on hand 6,191 2,521 6,191 2,521Deposits at call 29,702 22,227 29,702 22,227Receivables – debtors 1,380 1,804 1,380 1,804Receivables – other debtors 12,818 7,628 12,818 7,628Total financial assets 50,091 34,180 50,091 34,180

Financial liabilitiesCreditors and accruals 10,737 11,185 10,737 11,185Total financial liabilities 10,737 11,185 10,737 11,185

Financial instruments that are measured subsequent to initial recognition at fair value are grouped into Levels 1 to 3 based on the degree to which the fair value is observable.

• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Chisholm did not have any financial instruments that are measured subsequent to initial recognition at fair value in 2013.




DEClARAtIonbyboARDChAIR,ChIEFExECutIVEoFFICERAnD ChIEFFInAnCEAnDACCountIngoFFICER

In our opinion, the accompanying Statement of Performance of Chisholm Institute in respect of the 2013 financial year is presented fairly in accordance with the Financial Management Act 1994.

The Statement outlines the performance indicators as determined by the responsible Minister, pre-determined targets and the actual results for the year against these indicators, and an explanation of any significant variance between the actual results and performance targets.

As at the date of signing, we are not aware of any circumstance which would render any particulars in the Statement to be misleading or inaccurate.


26February2014

Dandenong


26February2014

Dandenong

Grant Radford Chief Finance and Accounting Officer

26February2014

Dandenong


pERFoRMAnCEStAtEMEntFor the year ended 31 December 2013

key Performance Indicator Definition 2013 2013 2012 resultactual target actual

Participation of 15–24 year oldsNumber of students within the age group

19,945 18,433 18,433 Achieved

Participation of 25–64 year oldsNumber of students within the age group

17,510 18,550 18,550Not achieved

(a)

Module load completion

Rate scheduled hours assessed as passed or satisfactorily completed/ total scheduled hours reported less hours recorded with credit transfer and continuing studies outcomes

87.12% 86.65% 86.65% Achieved

Student satisfaction Student satisfaction 74.4% 75.0% 75.0%Not achieved

(b)Total cost per student contact hour (SCh)

Total funded expenditure (excluding depreciation)/ total SCH

$ 8.47 $ 9.72 $ 11.16 Achieved

Working capital ratioCurrent assets/current liabilities (adjusted for non-current employee benefit liabilities)

3.54 2.30 2.14 Achieved

Net operating marginFunded operating surplus/total revenue (excl capital and exp from capital)

16.53% 0.15% 5.31% Achieved

Fee for service revenue Fee for service revenue 26,503,703 25,209,000 23,982,688 Achieved

Revenue per EFT staffTotal revenue (excl. capital)/average EFT staff

$ 136,719 $ 130,723 $ 122,862 Achieved

Student contact hours (SCh) 11,631,654 11,089,767 10,984,000 Achieved

Energy consumptionPercentage reduction in energy consumption. (2010 cons. – 2007 cons.)/2007 consumption

26.8% 25.0% 20.0% Achieved

(a) Changes in the training market conditions saw a market trend towards the engagement of youth and fewer adults at Chisholm.

(b) There is no material statistical difference between the target and outcome.

89Chisholm Institute Annual Report 2013 – Caroline Chisholm Education Foundation

CARolInEChISholMEDuCAtIon FounDAtIonFInAnCIAlREpoRt

The Caroline Chisholm Education Foundation is a further example of Chisholm’s commitment to social responsibility. It was established in 2006 by the Chisholm Board, recognising that many students needed financial support to access or remain in vocational education in the southern region. It was identified that many students have had a difficult journey in life, experiencing circumstances such as unemployment, a refugee background, single parenthood, a disability, homelessness or family adversity.

The Caroline Chisholm Education Foundation was established to assist students in hardship and raises funds for scholarships to help with course fees and other study expenses.

The formation of the Caroline Chisholm Education Foundation was inspired by the activism, energy and ‘can do’ approach of Caroline Chisholm. One of Australia’s greatest humanitarians, she assisted young people and women in their struggles to create a new life in Australia. On her arrival in the new Australian colony in 1838, she was compelled to help change the appalling conditions of poor, vulnerable migrants. “I promise to know neither country nor creed, but to serve all justly and impartially,” she wrote.

The Foundation proudly bears the name of this remarkable woman and the Trustees are committed to continuing her vision and ideals of social justice.

Chisholm Institute provides administrative and some in-kind support to the Foundation’s Secretariat to enable the focus to be on developing relationships with donors and the community to raise funds for scholarships, which are granted to students via a selection process.

‘I promise to know neither country nor creed, but to serve all justly and impartially.’

Caroline Chisholm (picture courtesy National Library of Australia)

90 Chisholm Institute Annual Report 2013 – Caroline Chisholm Education Foundation

MAnAgEMEntoFthECARolInEChISholMEDuCAtIonFounDAtIon

The Caroline Chisholm Education Foundation is a ‘controlled-entity’ of the Chisholm Institute Board, operating under a Trust Deed approved by the Board and an operational agreement with the Board.

The Board of Trustees has an independent chair and comprises representatives from the broader Chisholm community, the Chisholm Institute Board and Chisholm Institute staff. They are responsible for the governance of the Caroline Chisholm Education Foundation.

The Trustees during 2013 were: Virginia Simmons (Chairperson), Maria Peters, Kate Oxenbould (until September), Greg Hunt, David Willersdorf, Glen Kruger, Grant Radford (until September), Mandy Splatt, Charles Wilkins, Natalie Millan, Helen Lechte and Matthew Johnson.

Building Foundation funds

The aim of the Foundation is to maintain a funding base of $1,000,000 so that it can be self-supporting.

Distribution of Foundation grants

Grants are available to assist individuals and groups where social or financial circumstances are impeding engagement in education and training. Access to funding is subject to eligibility according to the Foundation’s Grant Disbursement Principles and particular grant guidelines.

Support scheme

Many students need additional support to remain in education and professional support staff are selected to assist Foundation holders who are deemed at risk of withdrawal or having difficulties with study. The staff provide additional advice and support so that scholarship holders can concentrate better on achieving positive study outcomes.

Fundraising

Fundraising events are an important aspect of Foundation activities. As well as lifting the profile of the Foundation in the local and wider community and expanding the number of donors and supporters, they give Chisholm staff an opportunity to get involved.

The Foundation has an annual plan of fundraising events that includes a Golf Day, International Women’s Day lunch and End of Year function. It also works in partnership with other organisations as their Charity of Choice.

CARolInEChISholMEDuCAtIonFounDAtIongRAntSStudents receive grants in accordance with their individual needs. This may include tuition, amenities and materials fees for programs undertaken or study support items such as computers, printers and other equipment. Travel and child care costs may also be covered where deemed appropriate.

2013 grants

In 2013 there were 185 scholarship recipients. Grants ranged from $250 to $4600 and were awarded to students undertaking English as a second language, pre-apprenticeships and apprenticeships, certificates, diplomas, advanced diplomas and degrees.

Scholarships covered all courses and all students had an opportunity to apply from all campuses.

Automotive Scholarship

Australian Communities

Foundation

Bendigo Bank SMP Project

Box Stallion Scholarship

Business Studies Scholarship

Chisholm Board of Directors’

Scholarship

Christmas Scholarship

Community Health Scholarship

Construction/Plumbing Scholarship

Engineering/Manufacturing

Scholarship

Fuji Xerox Scholarship

Grocon & VicUrban Scholarship

Hilton Manufacturing

Ian Tatterson Scholarship

Information Technology

Scholarship

KCG Scholarship, PCEA Scholarship

and DVCEA Scholarship

Leon Riley Scholarship (Rotary

Club of Sorrento)

Peninsula Community Legal Centre

Rotary Berwick Scholarship

Rotary Club of Endeavour Hills

Rotary Club of Rosebud

Scholarship

Sue Polgar Memorial Scholarship

Virginia Simmons Perpetual

Scholarship

ANZ Bank

Avaxa Scholarship

Berwick TEC Bursary

Building/Construction Scholarship

Casey and District Multiple Birth

Association Scholarship

Chisholm Staff Scholarship

City of Greater Dandenong

Scholarship

Community Health Services

Scholarship

Emerson Scholarship

FGB Natural Products Scholarship

Grenda Scholarship

Hardship Scholarship

Hospitality Scholarship

Indigenous Scholarship

(Department of Human Services)

International Women’s Day

Scholarship

Killen Scholarship

Marillal Ltd

Peter Wylie Memorial Bursary

(Rotary Club of Lysterfield and

Ferntree Gully)

Rotary Club of Chelsea Scholarship

Rotary Club of Frankston

Scholarship

Sandra George Manufacturing

Industry Award (Perpetual)

Volkswagon Club Victoria

Weblease




DEClARAtIonbythEboARDChAIR,ChAIRpERSonAnDChIEFFInAnCE AnDACCountIngoFFICER

We certify that the attached financial statement for the Caroline Chisholm Education Foundation (CCEF) has been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions issued under that legislation, Australian Accounting Standards and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and notes to and forming part of the financial statement, presents fairly the financial transactions during the year ended 31 December 2013 and financial position of the Foundation as at 31 December 2013.

At the date of signing this financial statement, we are not aware of any circumstance that would render any particulars included in the financial statement to be misleading or inaccurate. There are reasonable grounds to believe that the Foundation will be able to pay its debts as and when they became due and payable.

The Authorised Trustees sign this declaration as delegates of, and in accordance with a resolution of, the Trustees of the Caroline Chisholm Education Foundation.


26February2014

Dandenong

Virginia Simmons Chairperson

26February2014

Dandenong

Grant Radford Chief Finance and Accounting Officer

26February2014

Dandenong


CoMpREhEnSIVEopERAtIngStAtEMEntFor the year ended 31 December 2013

2013 2012

Note $ $

Continuing operations

Income from transactions

Donations received from Chisholm 89,173 108,791

Donations received from other sources 241,363 177,392

Interest revenue 22,500 31,210

Resources received free of charge 103,305 90,562

Total income from transactions 456,341 407,955

Expenses from transactions

Employee benefits 89,981 79,763

Scholarships 140,405 191,450

Administration charge 6,665 6,348

Audit fees 4 3,282 3,186

Consumables 4,911 4,249

Promotional expenses 14,551 13,262

Travel and motor vehicle charges 2,512 1,354

Other expenses 3,189 2,760

Total expenses from transactions 265,496 302,372

Net result from transactions 190,845 105,583

Comprehensive result 190,845 105,583

The above comprehensive operating statement should be read in conjunction with the accompanying notes.


BALANCE ShEETAs at 31 December 2013

2013 2012

Note $ $

Assets

Financial assets

Cash and cash equivalents 740,852 770,798

Investment – term deposit 101,105 0

Receivables 168,345 48,330

Accrued income 1,622 1,951

Total financial assets 1,011,924 821,079

Total assets 1,011,924 821,079

Net assets 1,011,924 821,079

Equity

Accumulated surplus/(deficit) 1,011,924 821,079

Total equity 1,011,924 821,079

Commitments 3

Contingencies 5

The above balance sheet should be read in conjunction with the accompanying notes.

StAtEMEntoFChAngESInEQuItyFor the year ended 31 December 2013

2013 2012

Note $ $

Accumulated surplus/(deficit)

Accumulated surplus/(deficit) at the beginning of the year 821,079 715,496

Comprehensive result for the year 190,845 105,583

Adjustment due to changes in accounting policy

Accumulated surplus/(deficit) at the end of the year 1,011,924 821,079

Total equity at the end of the year 1,011,924 821,079

The above statement of changes in equity should be read in conjunction with the accompanying notes.


CAShFlowStAtEMEntFor the year ended 31 December 2013

2013 2012

Note $ $

Cash flows from operating activities

Receipts

Donations received from Chisholm 89,173 91,580

Donations received from other sources 121,348 182,372

Interest received 22,829 29,258

Total receipts 233,350 303,210

Expenditure

Scholarships paid 140,405 191,450

Other expenses paid 21,786 19,610

Total expenditure 162,191 211,060

Net cash provided by/(used in) operating activities 2 71,159 92,150

Term deposit (101,105)

Net cash provided by/(used in) investment activities (101,105)

Net increase/(decrease) in cash and cash equivalents (29,946) 92,150

Cash and cash equivalents at the beginning of the financial year 770,798 678,647

Cash and cash equivalents at the end of the financial year 740,852 770,797

The above cash flow statement should be read in conjunction with the accompanying notes.



1. Statement of significant accounting policies

The financial statement is a general purpose financial statement which has been prepared on an accrual basis in accordance with the Financial Management Act 1994, applicable Australian Accounting Standards and Interpretations (AASs) and other mandatory professional requirements. AASs include Australian equivalents to International Financial Reporting Standards.

1.01 Basis of preparation

The following is a summary of the material accounting policies adopted by the Caroline Chisholm Education Foundation (CCEF) in the preparation of the financial statement. The accounting policies have been consistently applied unless otherwise stated.

Reporting basis and conventions

The financial statement has been prepared on a historical cost basis.

1.02 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and cash at bank. For the purpose of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of bank overdrafts. Bank overdrafts are included in interest bearing liabilities in the balance sheet.

1.03 Receivables

Receivables consist entirely of amounts held by Chisholm on behalf of the CCEF. Receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective rate of interest method, less any accumulated impairment.

1.04 Revenue recognition

Donations received from Chisholm

Donations received from Chisholm are recognised as revenue in the period when the CCEF gains control of the donation. Control is recognised upon receipt. In accordance with the Operating Agreement between the CCEF and Chisholm, 5 per cent of interest earned by Chisholm is donated to the CCEF. Chisholm also donates income earned from fundraising activities it holds on behalf of the CCEF.

Donations received from other sources

Donations received from other sources are recognised as revenue in the period when the CCEF gains control of the donation. Control is recognised upon receipt of the donation. Donations received from other sources include donations from industry, the community and Chisholm staff.

Resources received free of charge

Resources received free of charge are recognised as revenue when the Foundation gains control of them. The benefits derived from these resources are recorded at their fair value in the financial statements. In accordance with the Operating Agreement between the CCEF and Chisholm, Chisholm is responsible for all operating expenses of the CCEF.



Interest revenue

Interest revenue from cash, short term deposits and investments is brought to account on a time proportional basis taking into account interest rates applicable to the relevant financial assets.

1.05 Expenses

Employee benefits

Employee benefit expenses are recognised when incurred.

Scholarships

Scholarships are recognised as an expense when they are incurred.

Administration charge

The administration charge is recognised as an expense in the period when the amount becomes payable to Chisholm. In accordance with the Operating Agreement between the CCEF and Chisholm, 2 per cent of donation income is payable to Chisholm for administration of the CCEF accounts.

1.06 Commitments

Commitments include scholarships awarded to students for future years. Commitments are disclosed at their nominal values.

1.07 Contingent assets and liabilities

Contingent assets and liabilities are not recognised in the balance sheet, but are disclosed by way of a note and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable.

2. Cash flow information

2013 2012

$ $

Reconciliation of operating result to cash flows from operating activities

Net operating result for the year 190,845 105,583

Change in operating assets and liabilities

Income accrued 329 (1,951)

Decrease/(increase) in receivables (120,015) (11,482)

Net cash flows from operating activities 71,159 92,150

3. Commitments

2013 2012

$ $

Scholarship

Outstanding scholarships are payable as follows:

Payment due

Not later than one year 9,720 8,342

Later than one year and not later than five years

9,720 8,342



4. Auditor’s remuneration

In accordance with the Operating Agreement between the CCEF and Chisholm, Chisholm is responsible for audit expenses.

2013 2012

$ $

Victorian Auditor-General’s Office

Audit of the financial statement 3,282 3,186

5. Contingencies

At balance date, the Foundation had no contingent assets or contingent liabilities (2013: Nil).

6. key management personnel disclosures

In accordance with the directions of the Minister for Finance under the Financial Management Act 1994, the following disclosures are made for the responsible Ministers and responsible Members of Council.

(i) Minister

The relevant Minister is the Hon. Peter Hall MP, Minister for Higher Education and Skills. Remuneration of the Ministers is disclosed in the financial statement of the Department of Premier and Cabinet. Other relevant interests are declared in the Register of Members’ Interests, which is completed by each member of the Parliament.

(ii) Trustees of the Caroline Chisholm Education Foundation

The following persons were responsible persons and Trustees of the Foundation during the year:

Name Category of appointment Relevant period

Virginia Simmons Chairperson 01/01/2013 – 31/12/2013

Maria Peters Trustee 01/01/2013 – 31/12/2013

Grant Radford Trustee 01/01/2013 – 02/08/2013

Matt Johnston Trustee 02/08/2013 – 31/12/2013

Kate Oxenbould Trustee 01/01/2013 – 02/08/2013

Greg Hunt Trustee 01/01/2013 – 31/12/2013

David Willersdorf Trustee 01/01/2013 – 31/12/2013

Charles Wilkins Trustee 01/01/2013 – 31/12/2013

Mandy Splatt Trustee 02/08/2013 – 31/12/2013

Natalie Millan Trustee 02/08/2013 – 31/12/2013

Glen Kruger Trustee 02/08/2013 – 31/12/2013

Helen Lechte Trustee 02/08/2013 – 31/12/2013 (iii) Remuneration of Trustees

Trustees are not remunerated for carrying out their duties in their capacity as a Trustee.



7. Related parties

2013 2012

$ $

Debtor – Chisholm 168,345 48,330

168,345 48,330

Intercompany revenue

Donations 89,173 108,791

Resources provided free of charge 103,305 90,562

192,479 199,353

Intercompany expenditure

Administration charge 6,665 6,348

6,665 6,348

8. Financial instruments

Terms, conditions and accounting policies

CCEF’s accounting policies, including the terms and conditions of each class of financial asset, financial liability and equity instrument, both recognised and unrecognised at reporting date, are as follows:

Recognised financial instruments Note Accounting policies Terms and conditions

Financial assets

Cash and cash equivalents – deposits at call

1.02 Deposits at call are carried at their nominal amounts. Interest revenue is recognised in the operating statement when it is earned.

Deposits at call have an effective interest rate of 2.7%

Receivables Related party receivable

1.03 Related party receivable is carried at the nominal amount.

Investments Term deposits

Term deposits are held for 12 months fixed interest rate at 3.6%

(a) Financial instrument compositions and maturity analysis

The tables below reflect the undiscounted contractual settlement terms for financial instruments of a fixed period of maturity, as well as management’s expectations of the settlement period for all other financial instruments. Additionally, the total amount of financial assets disclosed excludes statutory receivables. Due to the aforementioned factors, the amounts below may not reconcile to the balance sheet.

2013 Weighted average effective rate

Floating interest rate $

Non-interest bearing $

Total carrying amount $

Financial assets

Cash and cash equivalents

Deposits 2.73% 740,852 740,852

Investments

Term deposits 3.66% 101,105 101,105

Receivables

Related party receivable 168,345 168,345

Other receivable 1,622 1,622

Total financial assets 841,957 169,967 1,011,924



2012

Weighted average

effective rate

Floating interest rate

$


$


$

Financial assets

Cash and cash equivalents 770,798 770,798

Deposits 4.29%

Receivables

Related party receivable 48,330 48,330

Total financial assets 770,798 48,330 819,128

(b) Sensitivity analysis

The following table summarises the sensitivity of the Foundation’s financial assets and financial liabilities to interest rate risk:

Interest rate risk

-0.50% +1.00%

Carrying amount Result Equity Result Equity

31 December 2013 $ $ $ $ $

Financial assets

Cash and cash equivalents 841,957 (4,209) (4,209) 8,419 8,419

Total increase/(decrease) 841,946 (4,209) (4,209) 8,419 8,419

Interest rate risk

-0.50% +1.00%

Carrying amount Result Equity Result Equity

31 December 2012 $ $ $ $ $

Financial assets

Cash and cash equivalents 770,798 (3,854) (3,854) 7,708 7,708

Total increase/(decrease) 770,798 (3,854) (3,854) 7,708 7,708

9. Fair value

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.

Due to the short term nature of the receivables, their carrying value is assumed to approximate their fair value. Receivables that are neither past due nor impaired will be received when due.

10. Financial risk management

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument is disclosed in Note 1 of the financial statements.



(i) Financial risk management objectives

The Foundation’s activities only expose it to interest rate risk. The Foundation relies on Chisholm’s treasury function to monitor interest rates and minimise potential adverse effect on the financial performance of the CCEF by adhering to Chisholm’s Investment Strategy parameters.

(ii) Financial risk exposures and management

The Foundation’s financial instruments consist of deposits at call and a related party receivable. The main risk to the Foundation is exposed to through its financial instruments is interest rate risk.

11. Interest rate risk

Interest rate risk arises from the potential for a change in interest rates to change the expected net interest earnings in the current reporting period and in future years. Similarly, interest rate risk also arises from the potential for a change in interest rates to cause a fluctuation in the fair value of the financial instruments.

The objective is to manage the rate risk to achieve stable and sustainable net interest earnings in the long term. This is managed predominately through a mixture of short term and longer term investments with AA rated banking institutions.

The Foundation’s exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities, both recognised and unrecognised at balance date, are set out in the financial instrument compositions and maturity analysis table.

12. Credit risk

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in a loss to Chisholm.

There is no credit risk to the related party receivable.


ACTIVITY TABLE

The activity table is provided for National Financial Reporting purposes. The information provided in this statement is reporting on the same basis as the financial information reported in the audited Financial Report for Chisholm Institute for the year ended 31 December 2013.

Statement 1 – Operating expenses

2013 2012

$’000 $’000

Total operating expenses

Delivery provision and support activity 61,150 77,737

Administration and general services activity 18,924 26,025

Property, plant and equipment services activity 18,350 18,819

Student and other services activity 6,322 6,842

Total operating expenses 104,745 129,423

Statement 2 – Delivery provision and support activity

Delivery provision and support activity

Salaries, wages, overtime and allowances 45,561 60,717

Superannuation 3,972 5,320

Payroll tax 2,460 3,449

Other salary related costs 947 1,075

Consumables 3,161 3,700

Travel and motor vehicle expenses 879 416

Depreciation 2,277 2,389

Other direct delivery expenses 1,893 670

Delivery provision and support activity 61,150 77,737

Statement 3 – Administration and general services activity

Administration and general services activity


Superannuation 469 616

Payroll tax 247 349

Other salary related costs (360) (171)

Consumables 223 312

Communication expenses 1,089 1,296

Fees 5,736 4,360

Travel and motor vehicle expenses 875 1,975

Depreciation 438 460

Other expenses 3,363 3,369

Administration and general services activity 18,924 26,025


ACTIVITY TABLE

Statement 4 – Property, plant and equipment services activity

2013 2012

$’000 $’000

Property, plant and equipment services activity

Salaries, wages, overtime and allowances 975 1,279


Payroll tax 53 68

Other salary related costs 21 13

Consumables 87 116

Depreciation 4,129 4,331

Equipment 555 1,365

Energy costs 1,755 1,759

Contract services 6,569 5,792

Rent/leasing charges 1,636 1,572

Repair and maintenance 2,477 2,374

Loss on sale of non-current assets (7) 24

Other expenses 6 9

Property, plant and equipment services activity 18,350 18,819

Statement 5 – Student and other services activity

Student and other services activity



Payroll tax 269 267

Other salary related costs 81 54

Consumables 245 359

Depreciation 15 16

Other expenses 258 886

Student and other services activity 6,322 6,842


2013FInAnCIAlpERFoRMAnCEAgAInStthE2013buDgEt

The Board approves an Annual Budget consistent with financial obligations stated in its governance approaches, the Constitution, the

Education and Training Act and other statutory directions. The 2013 Budget was originally approved by the Board on 5 December 2012. A

revision to the Budget was approved on 12 September 2013. Chisholm’s performances against the financial targets specified in the 2013 Revised Budget are summarised as follows:

Note

2013 Actual

$’000

2013 Revised budget

$’000

Variance

$’000

Operating Income 1

116,608 109,478 7,130

Operating Expenses 2 (97,338) (101,672) 4,334

EBITDA 19,270 7,806 11,464

Capital operations 3 11,397 11,692 (295)

Net surplus 30,667 19,498 11,169

Working capital balance 4 36,920 23,666 13,254

Notes

1. Operating income was higher than budget due to higher than anticipated training to eligible students.

2. The decrease in operating expenses largely results from cost cutting strategies employed by Chisholm.

3. Capital operations includes government contributions – capital, depreciation and expenditures from capital contributions.

4. Working capital is equal to current assets less current liabilities (excluding long term employee provisions).

2013-2015tARgEtSChisholm 2013 Targets 2013 Progress Report

5% growth in government funded SCh per annum

The target of 5% growth in government funded programs was 7,037,126 SCH. The final result of 7,495,577 attended SCH is 106.5% of the set target

1% increase in learners undertaking a subsequent course per annum

50.6% of students enrolled in a subsequent course in 2013. This represents a 12.6% overachievement against a target of 38%

10% growth in tertiary program student numbers per annum

Tertiary program student numbers increased by 58% for VET programs and 26.7% for HE programs. The number of students in each program was 8292 (VET) and 147 (HE) against a target of 5248 and 116 respectively

10% growth in commercial revenue per annum

Commercial revenue was $26.50m. This is 5.1% higher than the set target of $25.21m

1 average point increase in student satisfaction per annum

Student satisfaction was 74% compared to a target of 76% representing a decrease of 2.6%

Achieve a 6% surplus per annum, exclusive of re-investment

The Institute achieved a $19.27m operating surplus and operating revenue of $116.61m

5% increase in staff rating Chisholm as an excellent place to work

15.8 % of staff rated Chisholm as excellent in the Chisholm staff satisfaction survey. This represents a 2.6% overachievement against a target of 15.4%


DISCloSuRESInDExAnDADDItIonAlCoMplIAnCEREpoRtS

Introduction

The Annual Report is the only medium through which Chisholm Institute discharges its accountability to the Parliament, government and the people of Victoria. This index is provided to assist readers of the 2013 Annual Report to identify how Chisholm has met reporting obligations specified in:

• Financial Management Act 1994 (FMA)

• Financial Reporting Directions (FRDs)

• Standing Directions (SDs) of the Minister for Finance issued under the Financial Management Act 1994

• Education and Training Reform Act 2006 (ETRA)

• TAFE institute Commercial Guidelines (CG)

• Public Accounts and Estimates Committee (PAEC) and Victorian Auditor General’s Office (VAGO) - June 2003 Special Review item 3.110 – Overseas Operations of Victorian TAFE Institute

• Other relevant legislation listed in the disclosure index

Questions or comments can be addressed to:The Chief Operating OfficerChisholm Institute121 Stud Road Dandenong Vic 3175T: +61 3 9212 5259E: [email protected]


DISCloSuRESInDExAnDADDItIonAlCoMplIAnCEREpoRtS

This section of the 2013 Annual Report includes:

Disclosures index

Page number

The index of compliance reports, which provides:• a list identifying the relevant clauses of Victorian legislation with statutory

|disclosure requirements• a short description of the relevant requirement• details of the page number(s) where this Report provides the relevant details for

Chisholm Institute.

108 – 111

Additional information and reports not otherwise included in the 2013 Annual Report, including:

Page number

• Application of the Freedom of Information Act 1982 113

• Application of the Protected Disclosure Act 2012 122

• Assets received without due consideration 113

• Compliance with the Building Act 1993 114

• Engagement of consultants 116

• Environmental performance 118

• External reviews 112

• Financial Management Compliance Framework 122

• Formation and objectives of the Board of Chisholm Institute 23

• Formation and objectives of the Caroline Chisholm Education Foundation 124

• People and development report 17

• National Competition Policy 124

• Prices, fees, charges, rates and levies charged by Chisholm Institute. 126


DISCloSuRESInDEx

Item No

Source reference

SUMMARY OF REPORTING REQUIREMENT

Important Note: please refer to the individual FRD, SD or CG for full detail of requirements (see weblinks shown at top of this document) as the information provided below is a summary only

Identify relevant page(s) in your Annual Report

If not applicable to your institute, do not leave blank, write “n/a”

REPORT OF OPERATIONS

ChARTER AND PURPOSE

1 FRD 22D Manner of establishment and the relevant Minister 5, 23

2 FRD 22D Objectives, functions, powers and duties 23

3 FRD 22D Nature and range of services provided including communities served 23, 5 – 16

MANAGEMENT AND STRUCTURE

4 FRD 22D Organisational structure and chart, including accountabilities 24 – 27

5 FRD 22D Names of Board members 20 – 21, 24, 26, 74

FINANCIAL AND OThER INFORMATION

6 FRD 03A Accounting for Dividends NA

7 FRD 07A Early adoption of authoritative accounting pronouncements 56 – 58

8 FRD 10 Disclosure Index 107 – 111

9 FRD15B Executive officer disclosures 22, 75 – 76

10 FRD 17A Long Service leave wage inflation and discount rates 53

11 FRD19 Private provision of public infrastructure NA

12 FRD 20A Accounting for State motor vehicle lease arrangements prior to 1 Feb 2004 NA

13 FRD22 & SD 4.2(k)

Operational and budgetary objectives, performance against objectives and achievements

32 – 34, 88, 105

14 FRD 22D Occupational health and safety statement including performance indicator and performance against those indicators

29

15 FRD 22D Workforce data for current and previous reporting period including a statement on employment and conduct principles

17

16 FRD 22D Summary of the financial results for the year including previous 4 year comparisons

32 – 34

17 FRD 22D Significant changes in financial position during the year 34

18 FRD 22D Major changes or factors affecting performance 105

19 FRD 22D Post-balance sheet date events likely to significantly affect subsequent reporting periods

73

20 FRD 22D Summary of application and operation of the Freedom of Information Act 1982 113

21 FRD 22D Statement of compliance with building and maintenance provisions of the Building Act 1993

114 – 115

22 FRD 22D Statement on National Competition Policy 124

23 FRD 22D Summary of application and operation of the Protected Disclosure Act 2012 122

24 FRD 22D Summary of Environmental Performance. 119 – 121

25 FRD 22C Details of consultancies over $10,000 (refer to FRD for information required) 116 – 118

26 FRD 22C Details of consultancies under $10,000 (refer to FRD for information required) 118


Item No

Source reference





27 FRD 22D List of certain other information available on request (as specified in the FRD) 112

28 FRD 24C Reporting of office based environmental impacts 120 – 121

29 FRD 25A Victorian Industry Participation Policy Disclosures 123

30 FRD 26A Accounting for VicFleet motor vehicle lease arrangements on or after 1 February 2004

NA

31 FRD 29 Workforce Data Disclosures on the public service employee workforce NA

32 FRD30A Standard requirements for the design and print of annual reports 4

33 SD 4.5.5 Risk Management compliance attestation 28

34 SD 4.2 (g) Qualitative and Quantitative information to be included 4 – 16

35 SD 4.2 (h) Statement that Report prepared in accordance with Financial Reporting Directions

4

36 SD 4.2 (j) Sign-off by member of Responsible Body 6

37 CG 10 (clause 27)

Major Commercial Activities 115

38 CG 12 (clause 33)

Controlled Entities 44

FINANCIAL REPORT

FINANCIAL STATEMENTS REQUIRED UNDER PART 7 OF ThE FINANCIAL MANAGEMENT ACT 1984

39 SD 4.2 (a) The financial statements must be prepared in accordance with:Australian accounting standards (AAS and AASB standards) and other mandatory professional reporting requirements (including urgent issues group consensus views);Financial Reporting Directions; andbusiness rules.

373737

40 SD 4.2 (b) The financial statements are to comprise the following:income statement;balance sheet;statement of recognised income and expense; andcash flows statement; andnotes to the financial statements.

383960 – 624142 – 84

OThER REQUIREMENTS UNDER STANDING DIRECTION 4.2

41 SD 4.2 (c) The financial statements must where applicable be signed and dated by the Accountable Officer, CFAO and a member of the Responsible Body, stating whether, in their opinion:the financial statements present fairly the financial transactions during the reporting period and the financial position at the end of the period;the financial statements are prepared in accordance with this direction and applicable Financial Reporting Directions; andthe financial statements comply with applicable Australian accounting standards (AAS and AASB standards) and other mandatory professional reporting requirements (including urgent issues group consensus views).

37

37

37

42 SD 4.2 (d) Rounding of amounts. 54

DISCloSuRESInDEx


Item No

Source reference





43 SD 4.2 (e) Review and sign off by Audit Committee or responsible body 37

44 SD 4.2 (f) Compliance with DTF Model Financial report 4

OThER REQUIREMENTS AS PER FINANCIAL REPORTING DIRECTIONS IN NOTES TO ThE FINANCIAL STATEMENTS

45 FRD 9A Disclosure of administered assets and liabilities NA

46 FRD 11 Disclosure of ex-gratia payments 71

47 FRD 21B Disclosures of Responsible Persons, Executive Officer and Other Personnel (Contractors with significant management responsibilities) in the Financial Report

74 – 77

48 FRD 101 First time adoption 55

49 FRD 102 Inventories 50, 63

50 FRD 103D Non-current physical assets 46, 50 – 51, 64 – 66

51 FRD 104 Foreign currency 54

52 FRD 105A Borrowing costs NA

53 FRD 106 Impairment of assets 47 – 48

54 FRD 109 Intangible assets 46, 52, 67

55 FRD 107 Investment properties NA

56 FRD 110 Cash flow statements 41, 71

57 FRD 112C Defined benefit superannuation obligations 45 – 46, 73

58 FRD 113 Investment in subsidiaries, jointly controlled entities and associates 44, 77

59 FRD 114A Financial instruments – general government entities and public non-financial corporations

47, 78 – 84

60 FRD 115 Non-current physical assets – first time adoption NA

61 FRD 119 Contributions by owners 40, 70

62 FRD 119A Transfers through contributed capital NA

63 FRD 120G Accounting and reporting pronouncements applicable to the reporting period 43, 56 – 58

64 FRD 121 Infrastructure assets NA

PART 7 OF ThE FINANCIAL MANAGEMENT ACT 1994 (FMA)

65 FMA 49 (a) Must contain such information as required by the Minister. 37

66 FMA 49 (b) Must be prepared in a manner and form approved by the Minister. 37

67 FMA 49 (c) Must present fairly the financial transactions of an institute during the financial year to which they relate.

37

68 FMA 49 (d) Must present fairly the financial position of an institute as at the end of the year.

37

69 FMA 49 (e) Must be certified by the Accountable Officer for an institute in the manner approved by the Minister.

37

DISCloSuRESInDEx


Item No

Source reference





COMPLIANCE WITh OThER LEGISLATION AND SUBORDINATE INSTRUMENTS

70 Legislation The TAFE institute Annual Report must contain a statement that it complies with all relevant legislation and subordinate instruments, including, but not limited to, the following:Education and Training Reform Act 2006 (ETRA)TAFE institute constitutionDirections of the Minister for Higher Education and Skills (or predecessors)TAFE institute Commercial GuidelinesTAFE institute Strategic Planning GuidelinesPublic Administration Act 2004Freedom of Information Act 1982Building Act 1983Protected Disclosure Act 2012Victorian Industry Participation Policy Act 2003

106, 112

23, 11223, 1124, 1124, 1124, 11217, 112113, 112114 – 115, 112122, 112123, 112

71 ETRAs 3.2.8

Statement about compulsory non-academic fees, subscriptions and charges payable in 2013.

125

PRESENTATION OF REPORTING AND PERFORMANCE INFORMATION

Audited Statements of key Performance Measures (kPIs) must include an audited statement of performance for certain kPIs.

72 FRD 27B Reporting and performance should be presented using KPIs and a signed Performance Management Certificate should also be completed.(The following 11 are the mandatory KPIs)Participation of 15-24 year olds.Participation of 25-64 year olds.Module Load Completion Rate.Student satisfaction.Total Cost per Student Contact Hour (SCH).Working Capital Ratio.Net Operating Margin.Fee for Service Revenue.Revenue per EFT Staff.Student Contact Hours (SCH).Energy Consumption.

87 – 88

OVERSEAS OPERATIONS OF VICTORIAN TAFE INSTITUTES

73 PAEC andVAGO(June 2003 Special Review item 3.110)

financial and other information on initiatives taken or strategies relating to the institute’s overseas operations.nature of strategic and operational risks for overseas operations;strategies established to manage such risks of overseas operations;performance measures and targets formulated for overseas operations;the extent to which expected outcomes for overseas operations have been achieved.

12, 15, 60, 78 – 82

DISCloSuRESInDEx


ADDItIonAlInFoRMAtIonAVAIlAblEonREQuESt

Consistent with the requirements of the Financial Management Act 1994, Chisholm has prepared materials on the following topics, which are available on request:

• statements regarding declarations of pecuniary interest• details of publications produced by Chisholm Institute and the places where publications can be obtained• details of research and development activities undertaken by Chisholm Institute• details of overseas visits undertaken, including a summary of the objectives and outcomes of each visit• details of promotional, public relations and marketing activities undertaken by Chisholm Institute to develop community awareness

of the Institute and the programs and services provided• details of major committees sponsored by Chisholm Institute and the extent to which their purposes have been achieved• details of major external reviews• details of changes in prices, fees, charges, rates and levies charged by the entity• details of all consultancies and contractors including consultants/contractors engaged; services provided; and expenditure

committed for each engagement.

Enquiries regarding this information should be directed to:The Chief Operating OfficerChisholm InstitutePO Box 684 Dandenong Vic 3175T: +61 3 9212 5259E: [email protected]

CoMplIAnCEwIthothERlEgISlAtIonAnDSuboRDInAtEInStRuMEntS

Chisholm Institute complies with all relevant legislation and subordinate instruments, including, but not limited to, the following:

• Education and Training Reform Act 2006 (ETRA)• TAFE institute constitution• Directions of the Minister for Higher Education and Skills (or predecessors)• TAFE institute Commercial Guidelines• TAFE institute Strategic Planning Guidelines• Public Administration Act 2004• Freedom of Information Act 1982• Building Act 1983• Protected Disclosure Act 2012• Victorian Industry Participation Policy Act 2003.


ApplICAtIonoFthEFREEDoMoFInFoRMAtIonACt1982

Chisholm Institute has implemented procedures which, subject to privacy and confidentiality provisions, facilitate all reasonable requests for information from students, staff and the general public without recourse to the Freedom of Information Act 1982.

General enquiries about Chisholm Institute should be addressed to:Chisholm Institute PO Box 684Dandenong Vic 3175or visit www.chisholm.edu.au.

All Freedom of Information requests should be forwarded to:The Freedom of Information OfficerChisholm Institute PO Box 684Dandenong Vic 3175.

Chisholm Institute may levy a charge for information provided that is subject to a Freedom of Information request in accordance with the Freedom of Information (Access Charges) Regulation 2004.

During the year ended 31 December 2013, Chisholm received one application for access to documentary information under Section 17 of the Freedom of Information Act 1982.

ASSEtSRECEIVEDwIthoutDuEConSIDERAtIon

Chisholm Institute receives financial support from industry and the community in the form of donated assets and materials provided at no cost.

During 2013, these donations took the form of:

• cash donations received by Chisholm for the Caroline Chisholm Education Foundation• equipment, furniture and fittings and other consumable materials donated to Chisholm Institute that assist in the provision of

apprenticeship programs and the delivery of other programs• additional supplier price discounts for equipment purchased for training purposes• cash and materials donations specifically for student award presentations.

Contributions of resources received free of charge or for nominal consideration are recognised at their fair value when the contributed asset qualifies for recognition, unless received from another government department or agency as a consequence of a restructuring of administrative arrangements. In which case, such transfer will be recognised at carrying value. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated.


CoMplIAnCEwIththEbuIlDIngACt1993

General statement

Chisholm Institute holds all plans and documentation for building extensions and new buildings lodged for issue of building approvals by certified building surveyors. Upon completion of construction, the Institute has obtained Certificates of Occupancy and practical completion certificates from the relevant architects and surveyors.

Assurance programs

Certification of building projects

The architects provided completion certificates and necessary building compliance and regulatory certificates were received for all projects completed.

Building maintenance programs

Chisholm Institute has an ongoing maintenance program (using Institute staff and engagement of specialist external contractors) for works to the existing buildings controlled by Chisholm.

Compliance statement It is considered that all buildings on campus currently conform to the Building Regulations as existed at the time of construction of the respective buildings. All new buildings constructed since the promulgation of the Building Act 1993 comply with those relevant standards. Chisholm Institute has an ongoing program to ensure that any alterations or improvements to buildings meet the necessary standards to ensure that they are safe and fit for purpose.

For the year ended 31 December 2013, progress towards full compliance with the Building Act 1993 is summarised as follows:

Building works 2013 2012 2011 2010 2009

New buildings certified for approval 0 0 0 3 2

Works in progress subject to mandatory inspections 3a 0 0 3 1

New occupancy permits issued 0 0 4 3 3

Maintenance

Notices issued for substandard buildings requiring urgent attention 0 0 0 0 0

Other notices issued involving major expenditure and urgent attention

0 0 0 0 0

Conforming

Number of owned buildings occupied by Chisholm(Note the numbers are buildings in their entirety; floors and levels have not been considered.)

Frankston 17b 17 17 17 17

Dandenong 27c 27 27 25 25

Berwick 9 9 9 8 6

Cranbourne 5 5 5 4 3

Bass Coast 4 4 5 4 3

Mornington Peninsula 6 6 6 6 6

Total 69 69 69 64 60

Number of buildings conforming to the above standards 69 69 69 64 60

Number of non-conforming buildings vacated 0 0 0 0 0

Number of buildings not conforming to standards Refer to Subdivision Statement

Note:

a. Frankston campus Trade Training Centre (START), Mornington Peninsula campus Trade Training Centre, Berwick campus Trade Careers Centre.

b. Institute buildings J, K and L and buildings F, G and H at Frankston are counted as one building.

c. Institute buildings R and S are counted as one building.


CoMplIAnCEwIththEbuIlDIngACt1993

Subdivision 1 of the Building Regulations is related to all new buildings or section of existing buildings altered after 1 July 1994. There are approximately eight buildings out of the 69 that are considered to be Subdivision 1 type buildings. All buildings are issued with an Annual Essential Safety Measures Report.

Subdivision 2 relates to all buildings constructed or altered prior to 1 July 1994. All Subdivision 2 buildings have been provided with a maintenance determination in accordance with Part 1215 of the Building Regulations, which requires all buildings to be provided with this document and subsequent Annual Essential Safety Measures Reports prior to 13 June 2009.

Building works undertaken by Chisholm during the year ended 31 December 2013 were as follows:

• partial implementation of disability access rectification works across all campuses for high priority compliance issues• quarterly inspections completed by an accredited external consultant to ensure that all essential service requirements are met for the

safety of occupants.

REpoRtonMAjoRCoMMERCIAlACtIVItyThere was no other Major Commercial Activity conducted by Chisholm in this reporting period.


EngAgEMEntoFConSultAntS

The Financial Management Act 1994 defines a consultant as a person who or an organisation which:

• provides specialised analysis and advice to facilitate decision making• performs a one-off task or set of tasks• performs a function involving skills or specialised knowledge not available within the Institute.

During the year ended 31 December 2013, Chisholm:

• engaged 39 consultants costing more than $10,000; details are as follows:

Consultant Project

Approved expenditure

(exc. GST)

2013 expenditure

(exc. GST)

Future commitments

(exc. GST)

AECOM AUSTRALIA PTY LTD Assessment of report of ESCO request for proposal; tenderers

$10,420 $10,420 $0

APTUS INTERNATIONAL SERVICES PTY LTD

STRATA redesign consulting $154,587 $139,388 $13,365

AVAXA PTY LTD STRATA support and maintenance

$639,246 $512,815 $54,290

BEVINGTON CONSULTING PTY LTD T/A BEVINGTON GROUP

Quality management system design and development consulting

$415,495 $216,020 $221,182

BRIDGE CONSULTING & RECRUITMENT PTY LTD

Placement fee for HR operation

$12,084 $0 $0

BUREAU OF TOURISM RESEARCH

Building audit for reporting on asbestos

$21,835 $21,135 $770

CONSIDERED COMPLIANCE SERVICES PTY LTD

Memorandum of Understanding and sponsorship guidelines/templates

$32,727 $32,900 $4,290

DG TRAINING SOLUTIONS Services TVET skills upgrade $19,035 $26,236 $0

DIMENSION DATA LEARNING SOLUTIONS

Dimension Data technical consultant time

$45,023 $30,674 $14,349

FAST TRACK LEADERSHIP PTY LTD

Business case development for Chisholm @ 311

$10,909 $16,545 $0

FIVE CONSULTING PTY LTD Develop and complete a Department of Treasury and Finance compliant business case

$36,975 $36,975 $0

FOOKS MARTIN SANDOW ANSON PTY LTD

Southern Peninsula Trade Centre design consulting

$130,322 $130,322 $0

FUSION5 PTY LTD Statement of works – HEAT 2013

$46,754 $18,300 $18,590

FYB PTY LTD Review of records $142,650 $22,200 $117,381

GRAY PUKSAND PTY LTD Architecture and interior design – START

$284,451 $284,451 $0


Consultant Project


(exc. GST)

2013 expenditure

(exc. GST)

Future commitments

(exc. GST)

ADMAR DIRECTIONS T/A HERO CREATIVE

Visual media and branding consulting

$124,748 $88,815 $9,304

HR RESPONSE HR consulting $16,200 $16,200 $0

THE BYJOEL TRUST Chisholm organisational redesign

$116,150 $45,750 $59,125

LANDER & ROGERS Workplace relations and safety consulting

$19,396 $42,752 $0

M P CORDIA & ASSOCIATES PTY LTD

Condition audit and maintenance planning Southern Peninsula Trade Centre

$189,500 $189,500 $0

MAVERICK ROSE PTY LTD T/AS SAGACITY CONSULTING

Customer engagement project

$357,000 $210,000 $154,000

MERCER CONSULTING (AUSTRALIA) PTY LTD

Chisholm remuneration review

$31,290 $31,290 $0

PATRICIA CULLIT BTCC project coordination $100,000 $74,000 $76,900

PFJ EDUCATIONAL SERVICES PTY LTD

Educational services Africa TVET reform

$90,612 $90,612 $0

PHILLIPS KPA PTY LTD Frankston redevelopment project design consulting

$61,182 $61,182 $0

POINT PROJECT MANAGEMENT PTY LTD

Project management - BTCC $84,146 $84,146 $0

PRICEWATERHOUSECOOPERS Business case for Chisholm @ 311 and financial modelling

$32,175 $32,175 $0

PROFESSIONAL MENTORING & COACHING SERVICES

International review $22,800 $22,800 $0

REACTIVE MEDIA PTY LTD HACC project web interface development

$275,644 $376,820 $3,500

RESOLUTIONS CONSULTING SERVICES VIC PTY LTD

Employee assistance program and career transition group training

$18,611 $20,052 $1,720

SIMON WALLACE Technical advice and expenses TVET Africa teacher skills program

$19,245 $19,245 $0

SIRSIDYNIX PTY LTD Technical advice to SCA TVET

$12,990 $12,990 $0

TENDERCARE MEAT Project management services; trainers of trainers Ethiopian TVET

$20,754 $20,754 $0

THE NOUS GROUP PTY LTD Chisholm organisational redesign

$41,372 $25,436 $18,080

TIM BEDOHAZY T/A TM&L CONSULTING

Chisholm online development and consulting

$154,500 $154,500 $0

V LEARNING PTY Development of six SCORM $30,000 $30,000 $0



Consultant Project


(exc. GST)

2013 expenditure

(exc. GST)

Future commitments

(exc. GST)

VINCENT CHRISP & PARTNERS PTY LTD

Architectural services - DREAM and BTCC

$205,390 $205,390 $0

VIRSIS CONSULTING Education consultancy services Africa TVET teacher skills program

$29,425 $29,425 $0

WATEROPS TRAINING Water operations consultancy

$38,182 $16,200 $25,800

• Engaged other 55 consultants, each costing less than $10,000. The total costs of these consultancies were $160,936 (ex GST).

EnVIRonMEntAlpERFoRMAnCESustainability can be described as the interconnectedness of a healthy environment, social justice, equity and economic vitality so that the quality of human life is improved while living within the carrying capacity of supporting ecosystems.

Chisholm seeks to integrate sustainability principles into all aspects of the organisation so that it is recognised as a leader in the design and delivery of sustainable education and training for social, environmental and economic prosperity, and understanding through lifelong education, training and community capacity building.

Chisholm recognise its own sustainability is interconnected with the sustainability of its activities, which require coherence and congruence between sustainability, education delivery and assessment, campus operations and development, values, policy and procedures, behaviour and culture.

Chisholm’s core business is vocational education and training and the direct environmental impacts of this have been identified and targets

created relating to greenhouse gas emissions, energy, water, waste, onsite renewable generation, GreenPower purchase, embedding

sustainability into Institute business and education. Further to this Chisholm is committed to actions relating to green procurement and

education for sustainability, which will support the Chisholm 2020 target of 50 per cent reduction in the Chisholm sustainability index.

Key sustainability priorities for 2013 included the following:

ResourceSmart Strategy

The Chisholm ResourceSmart Strategy covers the following targets, relative to 2007 (base year):

Target (baseline 2007) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Emission reduction -15% -20% -25% -30% -35% -40% -43% -45% -48% -50%

Energy reduction -15% -20% -25% -30% -35% -40% 43% -45% -48% -50%

GreenPower purchase 20% 20% 25% 30% 35% 40% 45% 50% 55% 60%

Renewable generation 5% 8% 10% 12% 15% 18% 20% 25% 28% 30%

Water reduction -15% -25% -35% -55% -65% -70% -75% -80% -85% -90%

Waste recycling 25% 35% 45% 50% 55% 60% 65% 70% 75% 80%

The Chisholm ResourceSmart Strategy not only covers the above but also green purchasing, built environment design, transportation, education for sustainability, and embedding of sustainability throughout the business.



EnVIRonMEntAlpERFoRMAnCE

Environmental Sustainability Index

The Environmental Sustainability Index aligns with ResourceSmart strategy targets and is calculated using weighted emissions, energy and water consumption against students (EFTSL) plus staff (EFT). This single measure enables Chisholm to take a holistic view of sustainability.

A summary of the index follows:

Chisholm Environmental Sustainability Index 2010–2014

Year Target Sustainability Index

Target reduction %

Actual Sustainability Index

Actual performance %

2007 (baseline) 1.63 0% 1.63 0%

2008 1.59 -2% 1.64 1.6%

2009 1.55 -5% 1.41 -13%

2010 1.46 -10% 1.39 -15%

2011 1.38 -15% 1.41 -13%

2012 1.30 -20% 1.43 -12%

2013 1.20 -26% 1.26 -22%

Sustainability performance

Chisholm monitors its sustainability performance against ResourceSmart targets quarterly. The 2013 performance summary follows:

2013 (Jan–Dec) VS 2007 baseline (Jan–Dec)

Impacts/indicators MeasureBaseline

2007

Actual

2013

%

(‘07 vs’13)

Square metres (mth avg) M2 98,784 120,324 21.8%

Student contact hours (enrolled) SCH 9,250,627 12,021,892 30.0%

Student enrolments # 40,329 43,040 6.7%

Staff EFT (avg) EFT 956 853 -10.8%

Student EFTSL (SCH/720) EFTSL 12,848 16,697 30.0%

Student (EFTSL) + staff (EFT) EFTSL + EFT 13,805 17,550 27.1%

2011 targets

T1 – Emissions reduction (25%)t Co2e 14,223 15,272

t CO2e/EFTSL+EFT 1.03 0.87 15.5%

T2 – Energy reduction (25%) MJ 61,636,903 57,045,012

-27.2%Total MJ/EFTSL+ EFT 4,465 3,250

T3 – GreenPower purchase (25%) MJ 3,187,044 0

-9.8%% 9.8% 0%

T4 – Renewable energy (10%)MJ 0 39,210

0.06%% 0 0.06%

T5 – Water reduction (35%) kL 36,744 28,049

-39.8%kL/EFTSL+ EFT 2.66 1.60

T6 – Waste to landfill reduction (45%)

t 847 1,125

4.5%t/EFTSL+ EFT 0.0613 0.0641

% recycled 13.3% 24.5%


EnVIRonMEntAlpERFoRMAnCE

Notes:

There are many variables that impacted on Chisholm achieving its sustainability targets. Impacts include:

• the square metres (m2) of building area increased by 21.8 per cent in 2013 compared to 2007• the enrolled student contact hours (SCH) increased by 30 per cent in 2013 compared to 2007• Chisholm operating hours increased in line with the additional delivery.

2013 environmental data

Energy use 2013

Total energy usage segmented by primary source, including GreenPower (megajoules) Electricity 30,703,308

Natural gas 26,341,704

GreenPower 0

Total 57,045,012

Greenhouse gas emissions associated with energy use, segmented by primary source and offsets (tonnes CO2e)

Electricity (S2) 10,149

Electricity (S3) 1,279

Natural gas (S1) 1,352

Natural gas (S2) 105.37

GreenPower 0

Total 12,885

Percentage of electricity purchased as GreenPower (%) 0

Units of energy used per full time employee (megajoules per FTE) 66,876

Units of energy used per unit of office area (megajoules per m2) 474

Waste production

Total units of office waste disposed of by destination (kg per year) Landfill 1,125,189

Recycled 364,935

Total 1,490,124

Units of office waste disposed of per FTE by destination (kg per FTE) 1,747

Recycling rate (% of total waste by weight) 24.5%

Greenhouse gas emissions associated with waste disposal (tonnes CO2e) 1,238

Paper use

Total units of A4 equivalent copy paper used (reams)(1 ream = 500 pages/sheets). *Figure is based on the assumption that the total impressions/clicks are all calculated as printing double sided only to work out the total page/paper count. A3 paper usage has not been included.

Corridor printers* 7,925

Print room 12,169

Total 20,094

Units of A4 equivalent copy paper used per FTE (reams per FTE) 23.5

Percentage of recycled content in copy paper purchased (%) Recycled content 0

Carbon neutral 81

FSC accredited 95

Percentage of publications available electronically 100%

Water consumption 2013

Total units of metered water consumed by water source (kilolitres) 28,049

Units of metered water consumed in offices per FTE (kilolitres per FTE) 32.8

Units of metered water consumed in offices per unit of office area (kilolitres per m2)

0.23


Transportation

Total energy consumption by vehicle fleet segmented by vehicle type (L) Diesel 9,357

LPG 15,534

Petrol 118,388

Total 143.279

Total vehicle travel associated with entity operations segmented by vehicle type (km) 1,533,254

Greenhouse gas emissions from vehicle fleet (tonnes CO2e) segmented by vehicle type – total and per 1,000 km

Diesel (S1+3) 27.13

LPG (S1+3) 26.54

Petrol (S1+3) 292.41

Total 346.08

Total distance travelled by air (km) 2,305,755

Percentage of employees regularly using public transport, cycling, walking etc n/a†

Greenhouse gas emissions

Total greenhouse gas emissions associated with energy use (tonnes CO2e) 12,885

Total greenhouse gas emissions associated with vehicle fleet (tonnes CO2e) 346

Total greenhouse gas emissions associated with air travel (tonnes CO2e) 784

Total greenhouse gas emissions associated with waste disposal (tonnes CO2e) 1,238

Greenhouse gas emission offsets purchased (CO2-e) n/a†

Procurement

Chisholm chooses to partner with environmentally responsible suppliers by incorporating sustainability as part of the tender evaluation process. All tender applicants are required to provide details of strategies that will be adopted to contribute to Chisholm’s commitment to sustainability

† Not available in 2013 but will be reported from 2014 onwards.

Sustainable Campus Group

Chisholm Institute is an active member of the Sustainability Campus Group, which is focused on progressing sustainability in the tertiary and vocational education sector. In 2013 Chisholm participated in the Sustainability Campus Group sector reports. The reports are focused on participating institutes’ (universities and TAFEs) operational environmental performance such as energy, water, waste and emissions; however it also captures institutional commitment including education for sustainability. The report is a national benchmark report on environmental performance for the sector and can be viewed here: www.monash.edu/research/sustainability-institute/assets/documents/scg-report-2012_web.pdf.

Greener Government Buildings initiative

In 2013 Chisholm partnered with Ecosave to complete a Detailed Facility Study (DFS) of Institute facilities as part of the Department of Treasury and Finance’s Greener Government Buildings program. The DFS is equivalent to a level three energy audit under AS/NZS3598:2000 and will form the basis of an Energy Performance Contract for cost-effective energy and water efficiency solutions with guaranteed energy and water savings over a seven-year period. This initiative will provide significant energy and water savings to Chisholm and will support the Victorian Government target, which requires departments to have committed to implement an Energy Performance Contract at sites accounting for at least 90 per cent of their total energy consumption by 2018.


FInAnCIAlMAnAgEMEntCoMplIAnCEFRAMEwoRK

Under the Victorian Government Financial Management Compliance Framework (FMCF), Chisholm Institute makes an annual declaration on financial management, taxation, purchasing, theft and losses, compliance and reporting processes.

In accordance with the FMCF, Maria Peters, CEO and the Accountable Officer for Chisholm Institute and Grant Radford, Chief Operating Officer for Chisholm Institute have made a declaration to the Institute Board that Chisholm’s financial reports are founded on sound risk management, internal compliance and control systems.

In 2013, Chisholm Institute reports no non-compliances with the FMCF.

ApplICAtIonAnDopERAtIonoFthEpRotECtEDDISCloSuREACt2012Chisholm has implemented a policy and procedural framework to encourage and facilitate the making of protected disclosures of improper conduct by Chisholm’s officers and employees. Chisholm’s procedure provides protection and support for persons who made a disclosure and establishes a system for matters to be investigated and, where necessary, corrective actions to be taken.

For the year ended 31 December 2013:

(a) There was one matter raised with Chisholm under the Projected Disclosure Act 2012.

(b) There were no matters referred to Chisholm for investigation by the Ombudsman in 2013

(c) There were no matters referred to Chisholm Institute which the Institute declined to investigate.


REpoRtonthEIMplEMEntAtIonoFthEVICtoRIAnInDuStRy pARtICIpAtIonpolICy(VIpp)Chisholm has complied with the Victorian Industry Participation Policy Act 2003.

1. We commenced three construction contracts during this reporting period, totalling $35,627,495.80, for which the VIPP applied.

2. The commitments by contractors under VIPP included:

- An overall level of local content of 86% of the total value of the contracts;

- 336 number of full time equivalent jobs;

- 11 number of apprenticeships/traineeships; and

- The following benefits (as highlights) to the Victorian economy in terms of skills and technology transfer increases; engagement of new apprentices and retain existing; monitored training programmes and use of industry accredited training schemes.

Project Contract Award

Contract Value (ex GST)

Metropolitan / Regional

Overall Value of Local Content of the total value of Contract(ANZ Value-created Activity)

Number of FTE jobs Number of apprenticeships / traineeships

Employment Created

Employment Retained

Berwick TCC 21 December

2012

$17,317,953.00 Metropolitan 83% 3 113 8

Benefits to the Victorian EconomyAPM group training initiatives and promotion of the Skills for Growth; the Workforce Development Program; and Engagement of two new and 6 existing

apprentices.

Frankston START

TTC

11 April 2013 $15,729,539.00 Metropolitan 90.91% 10 100 3

Benefits to the Victorian EconomyA monitored training program for each employee; and Engagement of one new and 2 existing apprentices.

Mornington

Peninsula SPTTC

14 November

2013

$2,580,003.80 Regional 87.79% 100 10 0

Benefits to the Victorian EconomyAllmore training enhancing skills of the workforce; and Use of Industry accredited training schemes.

Total $35,627,495.80 113 223 11


FoRMAtIonAnDobjECtIVESoFthECARolInEChISholM EDuCAtIonFounDAtIon

The Caroline Chisholm Education Foundation is a ‘controlled-entity’ of the Chisholm Institute Board, which operates under a Trust Deed approved by the Board and an operational agreement with the Board.

The Caroline Chisholm Education Foundation began operations in 2006. The Foundation proudly bears the name of the pioneer Caroline Chisholm who, on her arrival in the new Australian colony in 1838, was compelled to help change the appalling conditions of poor, vulnerable migrants. ‘I promise to know neither country nor creed, but to serve all justly and impartially,’ she wrote.

Objectives of the Foundation

The objectives of the Foundation set out in the Trust Deed are as follows:

a) to strive to continue Caroline Chisholm’s values and legacy of social justice by providing support to disadvantaged students and members of the Chisholm Institute community

b) to provide scholarships, studentships, fellowships, bursaries and other forms of financial assistance, and support to students of the Institute (past, present or future) or members of the Institute community who are confronted by disadvantage, adversity, lack of opportunity or other circumstances that impede their advancement in education or the development of their vocational skills

c) to provide sponsorship or other forms of financial assistance to persons living outside Australia who are confronted by disadvantage, adversity, lack of opportunity or other circumstances that impede their advancement in education or the development of their vocational skills

d) to create opportunities for staff and students of the Institute to participate in philanthropic activities, training programs and educational or vocational initiatives, and to provide a source of funding for such activities, programs and initiatives that would assist and support students of the Institute (past, present or future), members of the Institute community or other persons confronted by disadvantage, adversity or lack of opportunity in educational advancement or vocational skill development in accordance with these general objectives

e) to extend invitations to staff, students, alumni, parents of students and individual organisational and corporate friends of the Institute to become contributors to the Foundation, and through such contribution to participate and join more actively and effectively in supporting and assisting the Institute to promote and carry out the objectives of the Foundation.

nAtIonAlCoMpEtItIonpolICy

Chisholm has developed costing and pricing models that apply to Chisholm costs including overhead, infrastructure and other indirect costs, where appropriate, to take into account any competitive advantage that Chisholm may have.

This enables Chisholm to comply with National Competition Policy, including the requirements of the government policy statement, ‘Competitive neutrality: A Statement of Victorian Policy’, the ‘Victorian Government Timetable for the Review of Legislative Restrictions’ and subsequent reforms.


CoMpulSoRynon-ACADEMICStuDEntFEESInCoME AnDExpEnDItuREStAtEMEntFor the year ended 31 December 2013

Chisholm Institute imposes compulsory non-academic fees known as the Student Services and Amenities Fee and the Ancillary Fee for the purposes of providing additional student services, amenities, activities and ICT infrastructure. The 2013 Student Services and Amenities Fee was calculated on the basis of 30 cents per enrolled student contact hour in government funded accredited courses, with a maximum fee of $150 and a minimum fee of $50. Certain concessions and exemptions applied. For 2013, the Ancillary Fee was a flat $25 per enrolment. The collection and expenditure of the fees is subject to the provisions of the Education and Training Reform Act 2006.

The 2013 academic year saw $1,536,252 collected from students via the abovementioned non-academic fees, subscriptions and charges. The funds collected were made available to a significant range of services, initiatives and support infrastructure aligned to the Institute strategy of ‘Institute of Choice’. These included disability liaison services including pre-enrolment planning, timetabling and career direction services as well as the provision of interpreter services, note takers and assistive technologies and other adjustments to accommodate students with individual requirements. Funds were applied to services providing youth counselling, career counselling and guidance, and personal counselling, all aimed at enhancing the educational opportunities while dealing with other issues of significance. Significant investments were made in student communication and events, the student portal and the graduate jobs portal to ensure the Institute was connecting with the student body and providing details about access to a range of services to assist their entry into the workforce.

In terms of support infrastructure, funds were made available to the student PC replacement program and ongoing maintenance of the wireless network to ensure students have access to up-to-date and fit for purpose technology for their learning. Collaborative learning spaces were supported in student common areas such as libraries to support the learning experience. Ongoing level 1 and 2 ICT helpdesk support for students rolled out across the Institute. A range of self-service charge stations and interlinked communications screens were also rolled out across Chisholm during 2013, making information and services directly accessible to students.

During the 2013 academic year, the Institute invested more in student support services and infrastructure than was collected through the compulsory non-academic fees, subscriptions and charges collected from students in line with our strategy – ‘Institute of Choice’.

Peter HarrisonExecutive DirectorEducational Leadership and Student ExperienceChisholm Institute


pRICES,FEES,ChARgES,RAtESAnDlEVIESChARgEDby ChISholMInStItutE

Chisholm charges a range of fees and prices for programs and services offered by the Institute. For 2013, the fees and charges included:

(a) Tuition fees for eligible Victorian Training Guarantee students. These ranged between $0.00 and $8.00 per hour, depending on the course, cohort and competitive forces. There was no minimum fee and maximums did not apply (with the exception of VCAL, which was capped at $1430).

(b) Students who were ineligible for the Victorian Training Guarantee paid tuition fees ranging between $5.80 and $12.00 per hour.

(c) A compulsory service and amenities fee was charged for the purpose of providing student services and amenities. The fee was based on 30 cents per enrolled hour with a minimum fee of $50 and a maximum fee of $150.

(d) An ancillary fee of $25 was charged in 2013. The fee was used to support the provision of information and communications technology equipment and access to students.

(e) A non-compulsory materials fee for eligible Victorian Training Guarantee students to cover the actual cost of providing materials or services used or retained by a student in a particular course of study. The fee varied for each course depending on requirements. Full details were provided to each student prior to enrolment.

(f) Recognition of prior learning tuition fees were initially set at 50 per cent of the normal tuition fee for both Victorian Training Guarantee and fee for service students. This fee was abolished for enrolments after 12 August 2013 for Victorian Training Guarantee students.

(g) All eligible Victorian Training Guarantee students who held valid concession cards (Commonwealth Health Care Card, Pensioner Concession Card and Veteran’s Gold Card) received an 80 per cent discount on their tuition fees and paid a maximum of $50 for the services and amenities fee.

(h) Programs and services provided on a fee-for-service basis were priced in accordance with National Competition Policy principles.

(i) Programs and services provided to international students and industry based customers were costed on a commercial basis.

(j) Other fees and charges of a cost-recovery nature, e.g. library fines, parking fines, photocopying and printing charges for staff and students.


ACRonyMS

This listing is prepared to assist in the understanding of the Annual Report and related materials.

AAS Australian Accounting Standard

AASB Australian Accounting Standards Board

AEE Annualised employee equivalent

ARR Accounting rate of return

BTCC Berwick Trade Careers Centre

CCEF Caroline Chisholm Education Foundation

CEO Chief Executive Officer

DFS Detailed Facility Study

DREAM Dandenong Regional Educational Alliance Model (Dandenong TTC)

EBITDA Earnings before interest taxes and amortisation

EFT Equivalent full time (when referring to staffing)

EFTSL Equivalent full time student load

ETR Education and Training Reform Act 2006

FBT Fringe benefits tax

FFS Fee-for-service

FMA Financial Management Act 1994

FMCF Financial Management Compliance Framework

FRD Financial Reporting Directions

FSC Forest Stewardship Council

FTE Full time employee

GST Goods and services tax

HACC Health and community care

IFRS International Financial Reporting Standards

LSL Long service leave

MBA Master of Business Administration

OH&S Occupational health and safety

PACCT Professional, Administrative, Clerical, Computing and Technical

PAEC Decision of Public Accounts and Estimates Committee of Parliament December 1997

PPE Personal protective equipment

SCH Student contact hours

SD Standing Directions of the Minister for Finance issued under the Financial Management Act 1994

START School TAFE Alliance Regional Trade (Frankston TTC)

TELC Technology Enabled Learning Centre

TTC Trade Training Centre

TVET Company owned by the Ministerial Council for Tertiary Education and Employment

UIG Urgent Issues Group

VCAL Victorian Certificate of Applied Learning

VCE Victorian Certificate of Education

VET Vocational education and training

1300 244 746chisholm.edu.au

0523

-031

4 ©Chisholm Institute February 2014CRICOS No 00881F TOID - 0260

LOCATIONS

BASS COAST CnrwhiteRoadandSouthDudleyRoad, wonthaggi VIC 3995

bERwICK25KanganDrive, berwickVIC3806

ChISholM@311311 Lonsdale Street, DandenongVIC3175

CRANBOURNE newhollandDrive, CranbourneVIC3977

DAnDEnong121 Stud Road, DandenongVIC3175

FRAnKStonFletcher Road, FrankstonVIC3199

MoRnIngtonpEnInSulACnrhenrywilsonDriveandboneoRoad, RosebudVIC3939

Documents

ANNUAL REPORT - Parliament of Victoria · Currently, Chisholm offers certificate, diploma, advanced diploma and graduate certificate courses, short courses and degree programs. There