Annual Report 1 January – 30 June 2009 The Honourable David Bartlett MP Premier of Tasmania Minister for Education and Skills Parliament House HOBART TASMANIA 7000 Dear Minister In accordance with the requirements of Section 29 of the Education and Training (Tasmanian Polytechnic) Act 2008, I am pleased to submit to you, the first Annual Report for the Tasmanian Polytechnic for the first six months of operation from 1 January to 30 June 2009. This is the beginning of the journey for the Tasmanian Polytechnic. Our three-year Corporate Plan submitted to you in May, is the road map that will take us from the newly formed organisation we are now, to the fully fledged provider of Polytechnic education. There will be continuous change and improvement as the remaining senior secondary colleges join the new system from now until 2011 and as we work to develop the Polytechnic education model. We have already achieved a great deal; and will continue to evolve into the Tasmanian Polytechnic of tomorrow. By 2011 the Polytechnic education model will be fully developed, providing a huge diversity of options and catering to the needs of young and mature-aged learners. We look forward to the challenges and opportunities that lie ahead. Dr Michael Vertigan AC Chair of the Board October 2009 Catherine Neale, Laboratory Operations. Nicki Hussain, Clothing, Textiles and Design. TAble of ConTenTs Message from the CEO 6 Our Strategic Focus 8 Our Organisation 11 The Tasmanian Polytechnic Board 12 Organisational Chart 14 Strategic Focus Areas 16 Strategic Focus Area 1 Our Learners 16 Strategic Focus Area 2 Our People 18 Strategic Focus Area 3 Our Products 21 Strategic Focus Area 4 Our Relationships 24 Strategic Focus Area 5 Our Infrastructure 27 Strategic Focus Area 6 Our Brand and Reputation 30 Strategic Focus Area 7 Our Governance, Finance and Sustainability 32 Consultants & Contracts 34 Financial Statements 35 Contents 35 Income Statement 36 Balance Sheet 37 Cash Flow Statement 38 Statement of Changes in Equity 39 Notes to and forming part of the Financial Statements 40 Statement of Certification 53 Independent Audit Report 54 MessAge fRoM The Ceo It is with a great deal of pride, and excitement for the future, that I write this message for our inaugural Annual Report which signals the culmination of the Tasmanian Polytechnic’s first six months of operation. Classes have been up and running at the Polytechnic since January 2009, and our enrolment figures are healthy, indicating a strong basis for future growth. Behind the scenes, an enormous amount has been achieved in the six months since the Polytechnic commenced. Over 1800 Polytechnic teaching and corporate staff are working hard to ensure that young and mature-aged Tasmanians are receiving high quality education and training for an applied learning pathway that will support them to achieve their career and personal goals. Strategies are being designed and implemented, and relationships developed, to transition the remaining colleges into the system by 2011. The Polytechnic continues to work closely with the Tasmanian Academy and Tasmanian Skills Institute to ensure the best possible experience for all existing and prospective students. Our relationships with the University of Tasmania, industry and community are developing well; and work is ongoing to ensure the Polytechnic message is communicated to increase the level of recognition and understanding across Tasmania’s and the national community. A unique Polytechnic educational experience is under development. The Tasmanian Polytechnic’s education model will be holistic and build learners’ capacity to ‘think, be and do’ in Tasmania, as well as in the global community and economy. It is characterised by being applied, connected, flexible and supported. The Polytechnic experience will enable learners to obtain industry-valued vocational qualifications together with the Tasmanian Certificate of Education, and authentic work-based learning, providing tangible pathways to employment or to higher education. But it’s not just about learning; the Polytechnic will provide enriching experiences to support and develop the whole person. I want to thank the Board for its support, and all those in the Polytechnic for their hard work and dedication. The focus has always been and will continue to be on our learners and on providing better education outcomes and futures for all Tasmanians. We are very proud of what we have achieved so far and look forward to the Polytechnic’s future. Belinda McLennan BA, Dip Ed, Grad Cert Ed, M Ed Leadership & Management Chief Executive Officer Victor Traill, Outdoor Recreation and Eco & Adventure Guiding. ouR Vision ouR Mission ouR VAlues ouR sTRATegiC foCus Our learners achieve more productive and fulfilling lives as a result of their Polytechnic education experience. To provide learners with an applied education experience to gain the qualifications and skills they need to be productive in the workforce, continue with learning and contribute positively to the community. learner-centred • Make the learning, support and personal development needs of learners our priority • Value, understand and support each learner as an individual • Welcome and encourage learners of all ages, backgrounds and origins. Connected • To our learners, their families and communities – locally, nationally and globally • To the needs of employers, business and industry • To other service providers as partners in learning and education. innovative • Searching for, and open to, new and better ways of doing things • Listening to others to broaden our own perspectives. Resourceful • Developing and delivering learning experiences that challenge and stretch learners • Finding practical solutions to problems. Accountable • Doing what we say we’ll do • Assessing risk • Delivering results and measuring success • Being financially accountable. excellence • In our staff, our programs and our facilities. strategic focus Areas The Polytechnic’s learners are at the centre of all our plans and activities, and are therefore our key strategic focus. In its planning processes the Board has identified the six supporting Strategic Focus Areas whose plans and activities separately and together are the key influences on Polytechnic learners’ educational experience. our Products our brand and Reputation our People our infrastructure our schools, industry, business and Community Relationships our governance, finance and sustainability Our learners Natalie Palmer, Mount Nelson Campus. Photo courtesy of the Mercury ouR oRgAnisATion The Polytechnic was conceived as part of the Tasmania Tomorrow initiative which is transforming post-Year 10 education and training in order to significantly improve the qualification and skill levels of Tasmanians. On 1 January 2009, TAFE Tasmania and four of the state’s eight senior secondary colleges became three new organisations – the Tasmanian Polytechnic, the Tasmanian Academy and the Tasmanian Skills Institute. The remaining colleges will make the transition to the new model over the next two years. The Tasmanian Polytechnic is a statutory authority established under the Education and Training (Tasmanian Polytechnic) Act 2008. It is an Agency under the State Service Act 2000. Its Board is accountable to the Minister for Education and Skills for achievement of its functions. At 30 June 2009 the Polytechnic had over 1800 permanent, fixed-term and sessional staff on 19 campuses statewide with most campuses being shared with either the Academy or the Skills Institute. The Polytechnic is a registered training organisation providing over 300 nationally recognised and endorsed vocational qualifications from Certificate I to Advanced Diploma together with a range of Tasmanian Qualifications Authority accredited subjects. Programs are targeted at 16 to 19 year olds preparing for a career or further study, and at individual older learners who are returning to, or are already participants in the workforce, who are re-entering education, upskilling or preparing for a career change. Programs provided to Year 11 and 12 learners through district high schools and other facilities such as local skills centres will eventually be auspiced by the Polytechnic and Academy. The transition of these programs will occur through individual partnerships negotiated with local communities in line with each college’s transition. Once the transition is complete it is anticipated that the Polytechnic will enrol around 35,000 learners each year. Shared Services within the Polytechnic provides a range of corporate services to the Polytechnic, Academy and Skills Institute through service level agreements. This model is focused on increasing efficiency of operations and minimising the cost of corporate services for each of the three statutory authorities. Tasmanian Government Education and Training International (GETI), housed within the Polytechnic, provides administrative and marketing services to the Department of Education for schools from Kindergarten to Year 10 and the remaining senior secondary colleges as well as the Academy, the Polytechnic and the Tasmanian Skills Institute. GETI also provides coordination for two significant off-shore Polytechnic projects in Kuwait and Shanghai, China. freedom of information and Public Disclosure The Tasmanian Polytechnic complies with the provisions of the Freedom of Information Act 1991 and the Public Interest Disclosures Act 2002. During the period 1 January – 30 June 2009, the Polytechnic received no requests under the Public Disclosure Act 2002, and two requests for information under the Freedom of Information Act 1991. Information in regard to these requests was provided in full and processed within 30 days. Enquiries or requests for information under the Act should be addressed to: The Freedom of Information Officer The Tasmanian Polytechnic GPO Box 1625 Hobart Tas 7001 Back L–R: Belinda McLennan (CEO), Peter Killick, Kathryn Thomas, John Galbraith, Dennis Betts. Front L–R: Allyson Warrington, Dr Michael Vertigan (Chair), Prof. Judith Walker. 12 The TAsMAniAn PolyTeChniC boARD Dr Michael Vertigan AC (Chair) b ec (hons), PhD Kathryn Thomas Dip ed Peter Killick John galbraith b sc (Chem eng), MbA (Mktg) Prof Judith Walker PhD, grad Dip ed, bA (hons) Dennis betts bA, Dip ed, grad Dip ed Allyson Warrington b bus Chair of Tasmanian Perpetual Trustees and Agest Superannuation Fund and a member of the Higher Education Endowment Fund Advisory Board. Former University of Tasmania Chancellor. Global Lead for Professional Development Enablement with Learning and Knowledge in IBM, and a former teacher. General Manager and Director, Fairbrother Construction and Joinery. Former Director, TAFE Tasmania Board. General Manager Services, Australian Bulk Minerals. Professor of Rural Health and Chief Executive Rural Clinical School. Deputy Chair Academic Senate, University of Tasmania. Former Principal with the Department of Education. Tertiary Development Manager – CPA Australia and Immediate Past President, Australian Marketing Institute (Tasmania). oRgAnisATionAl ChART As AT 30 June 2009 Tasmanian Polytechnic board DrMichaelVertiganChairKathrynThomasPeterKillickJohnGalbraithProfJudithWalkerDennisBettsAllysonWarringtonChief executive officer Belinda McLennan Manager executive services Karina Groenewoud (acting) executive Manager government education and Training international Anne Ripper general Manager shared services Tony Luttrell Director student support and Development Ron Nash Director learning and Teaching Jules Carroll Director strategic Development Pam Baker (acting) Manager organisational Change and Development Glenn Smith (acting) Manager Communication and Marketing Karen Clark (acting) Evan Williams, Food and Beverage. sTRATegiC foCus AReA 1 ouR leARneRs Our learners are at the centre of everything we do. We must ensure that all our learners, current and future, receive the highest quality learning experience both during the Polytechnic’s transition and into the future. our strategic focus The Polytechnic is charged with providing education and training opportunities for all Tasmanians. This includes attracting and retaining learners who were previously disengaged from education and training, providing opportunities for learners in rural and remote communities, and ensuring learners with specific learning needs and barriers have access to appropriate learning programs to achieve their potential. The Polytechnic will define and embed Polytechnic essential skills in learning and enrichment programs, will align technology with learner and organisational needs, will provide effective customer services and create a satisfying experience for our international learners. A snapshot of our learners The Polytechnic enrols learners of all ages from the end of Year 10. Each learner enrols with their own mix of skills and ambitions. The Polytechnic strives to link each learner with an appropriate course of study; one that is likely to lead to success. As this report covers the first six months of operation of the Polytechnic from 1 January to 30 June 2009, there is no validated enrolment data for the Polytechnic for this period. Detailed enrolment data for the 2009 calendar year will be reported in the next annual reporting period. our achievements Supporting Our Students • A student support structure was established to provide support to all students on campuses. This included Support Teachers acting as mentors for students, Student Support Leaders supporting groups of Support Teachers as well as carrying out campus-wide support functions. A senior Student Coordinator on each campus took overall responsibility for student wellbeing, including behaviour management and parent liaison on that campus. • The Tasmanian Polytechnic Student Support Program booklet was developed. Support Teachers worked with students using the booklet to focus their thinking on current and future learning including meeting the requirements of the TCE. • Foundation program teams identified gaps in curriculum that did not meet the needs of students with learning barriers and began trialling alternative curricula from mainland states to better meet their needs. • Individual student plans were developed for migrant learners as well as a skills portfolio to assist with selection in desired learning areas. • The Work it Out program placed humanitarian entrants and migrants with local businesses to help develop work skills and knowledge of Australian workplace culture. Refugees and migrants firstly developed English language skills in the classroom before being placed with industry, developing pathways to employment. • A partnership between the Polytechnic START team and Active Launceston, developed an innovative program to support young people to manage their own health and wellbeing. This community-connected program engaged START students in fun and challenging physical activities, such as abseiling, and provided them with the opportunity to develop leadership and team building skills. Rural and Remote Communities • Work commenced to establish the partnerships that will enable the phased-in transition of Polytechnic education delivery through regional high schools in rural and remote communities in line with the transition of the colleges. • A reference group was established to progress issues for rural and remote communities. The group included representatives from the Polytechnic, principals of regional schools (Smithton, Scottsdale, Port Dalrymple, St Marys and Dover) and the Department of Education. Our International Students • Support services were put in place to ensure international students were better informed and educated about their options. • Orientation sessions provided practical information on, for example, how to open a bank account and information on public transport. • Extensive English language courses provided pathways for students to further study. • Comfort and safety was a priority through provision of appropriate accommodation. • Monthly excursions were made available to provide cultural, geographical, fun and historical experiences for our international students. our learners in focus – creating futures Aubert Ruzigandekwe encapsulates what the Tasmanian Polytechnic is all about – creating futures. A survivor of the Rwandan genocide, Aubert was forced from his home, seeking refuge in Tasmania. He arrived with no English skills at all, but graduated from the Polytechnic in March with a Diploma of Youth Work and a Diploma of Alcohol and Other Drugs Work. Aubert works full time at Centrelink and part time with disadvantaged young men at the Youth Care Shelter operated by Anglicare Tasmania. He also works voluntarily with young refugees, coaching soccer, and with Centacare supporting new arrivals. Aubert is also a member of the Rwandan Coffee Club selling coffee to raise money to support survivors of genocide in Rwanda. I had no English at all when I came to Tasmania, and I first had to go to Migrant Education to learn it. It was very difficult for me to not be able to communicate, but the teachers were very helpful, understanding and friendly. I then decided to study community services because I owe my life to all the people who helped me in many ways, but especially the ones who helped me to survive the Rwandan Tutsis genocide.TheteachersatthePolytechnichelpedmeachievemygoalsandtounderstandAustralian culture. Theyhelpedmetolookatmyself,andbuildonmystrengthstheyaretalentedandamazingteachers,” he said. Auberthasalreadyachievedmanyamazingfeatsbutheisnotstoppingthere. ThenextstepformeisUTAStodosocialworkparttimesoIcankeepworking. I would like to work for humanitarian organisations in disadvantaged places one day. Aubert returns to Rwanda whenever he can to assist in truth and reconciliation processes. sTRATegiC foCus AReA 2 ouR PeoPle An appropriately qualified, highly prepared, supported and motivated workforce, working toward a common goal is essential if the Polytechnic learning model is to be implemented effectively. our strategic focus The Polytechnic will develop standards of teaching and learning facilitation to support the Polytechnic learning model, and develop the skills and knowledge of staff to manage and participate effectively in innovation and change. Implementation of a comprehensive leadership development program to support personal and professional growth and succession planning will be of the highest importance. We will celebrate success and progress both short and long term, as well as continue to win staff belief and buy-in to the Polytechnic. The Polytechnic will develop a distinctive culture that is able to adapt to change and is committed to agreed values and behaviours. We will plan for and value the diversity of our current and future workforce. A snapshot of our people Permanent and fixed term employees as at 30 June 2009 by salary and gender salary $ female Male Total 20 000–29 999 1 1 2 30 000–39 999 42 33 75 40 000–49 999 303 89 392 50 000–59 999 96 36 131 60 000–69 999 110 78 188 70 000–79 999 212 162 372 80 000–89 999 50 40 90 90 000–99 999 8 11 19 100 000–240 000 3 7 10 Total 825 457 1 279 Workers compensation claims as at 30 June 2009 Workers compensation claims 2009 Claims lodged 1 Jan – 30 June 25 Claims accepted 1 Jan – 30 June 25 Persons employed (head count & fTe) as at 30 June 2009 Classification Total fTe heads Polytechnic shared services Total Polytechnic shared services Total Admin (General) 179.9 209.77 389.67 248 227 475 Allied Health Professional 1.2 1.2 2 2 CEO 1 1 1 1 Operational (Miscellaneous) 91.98 91.98 104 104 Professional 9.48 9.48 10 10 SES 3 4 7 3 4 7 Teacher Aide 24.62 24.62 56 56 Teaching 519.67 519.67 624 624 Sessional Teachers 538 538 Total 738.87 305.75 1 044.62 1 482 335 1 817 Note: excludes relief and casual staff Type of workers compensation claims lodged as at 30 June 2009 nature of injury number of claims Sprains/Strains 13 Burns 1 Mental health issues 6 Other injuries 2 Soft tissue injuries 3 Total 25 our achievements Polytechnic Learning Month • Polytechnic Learning Month commenced with a statewide conference held in Launceston on 19 June 2009. Over 220 Tasmanian Polytechnic staff attended the conference with the theme, ‘How do we deliver on the promise of Polytechnic Learning?’ The conference featured two dynamic and informed speakers, Ron Oliver and Ruth Wallace, both with expertise in various aspects of Flexible, Applied, Connected and Supported Learning. • During Learning Month, over 75 different sessions were held around the state covering a range of activities designed to inspire and engage staff including: Polytechnic Attributes & Values; Problem-based Learning; Virtual Worlds; Engaging & Motivating Students Through Google; and Serious Games for Learning. Strategic Leadership Learning Program • Senior leaders from across the organisation were engaged in workshops in May and June to enhance leadership capabilities and build leadership capacity for the future. The workshops aimed to equip leaders with the skills to support staff in dealing with change, while providing stability to their teams. • Four leaders participated in the mentoringbased Leadership & Development Program through Victoria University in partnership with the Chair Academy (USA). The first session was held in May with the program continuing throughout the year. Supporting staff • A Change Leader was located at each campus to assist staff with resolution of issues. • Industrial Relations Arrangements Workshops were held during March at each major campus to support a better understanding of the new industrial relations arrangements, particularly for teaching staff. • Statewide training sessions were run to support staff using systems including the HR system. • Information updates were regularly circulated to staff to provide clarification on issues and ensure consistent application of human resource practices and processes. • Processes were implemented to ensure all existing and new employees in the Polytechnic had a good character check. • Teachers gained access to more flexible leave entitlements, introducing the possibility of taking seven of their 11 weeks annual leave outside of school holiday periods. • Celebrate our Diversity days were held around the state in March as a part of A Taste of Harmony week bringing staff together at multicultural shared lunches. • Influenza vaccinations were made available to all staff during late May 2009 with the program being run at major campuses. • The Polytechnic encouraged staff participation in DPAC’s Healthy at Work project, Global Corporate Challenge initiative. • A number of these initiatives were part of the Health and Wellbeing strategy, which aimed to promote health and wellbeing awareness to all staff. L R Peter Higgs, Stephen Brain and Julian Ebeli. L R Peter Higgs, Stephen Brain and Julian Ebeli. our people in focus – celebrating success and encouraging innovation The learning and Technology team at the Tasmanian Polytechnic represented the country at a global innovation award in barcelona in May. Peter Higgs, Manager Learning Technology together with his innovative team won a place at the IMS Global Learning Impact Awards with their invention, a learning device called the QTImPlayer. The IMS Awards recognise outstanding applications in technology that address the significant challenges facing the global education and training industries. The QTImPlayer is an assessment tool that runs on a hand held device, like a smart phone, which allows teachers to assess students ‘on the-job . This means that teachers can do assessments in the workplace, download assessment tools, assess learners and then upload the results with attached evidence such as photos, videos and audio. Plug in camera glasses allow learners to video themselves doing a work related activity and then send it to their teacher for assessment. Improving the quality of, and access to education, is the global challenge that underpins all other global challenges. Harnessing the potential power of new technologies can enhance the reach and effectiveness of education and is a compelling priority for society,” Mr Higgs said. The QTImPlayer will mean employees can be trained and assessed on site, contributing to increased productivity. sTRATegiC foCus AReA 3 ouR PRoDuCTs To be successful, the Polytechnic must develop and deliver future-focused vocational and applied education programs that are engaging and accessible to learners and meet the needs of business, industry and the government. our strategic focus It is the Polytechnic’s objective to create a learning experience which provides quality applied learning and personal development for all its learners. Polytechnic Essential Skills will be agreed and developed through problem-based learning and we will establish and support Polytechnic centres of workforce futures excellence. The Polytechnic course ‘profile’ will develop distinctive and innovative courses consistent with Tasmania’s workforce skill needs. A range of flexible learning options will be available, including e-learning, in programs to enable access and multiple pathways to achievement of qualifications. Learner achievement will be officially recognised wherever possible. A snapshot of our products The Polytechnic delivered on its promise of choice. The Polytechnic was registered to provide over 300 nationally recognised vocational training package qualifications from Certificate I to Advanced Diploma, in a wide range of industry areas. Twenty Tasmanian Qualifications Authority (TQA) accredited courses were offered. There were 110 Certificate I and II pre- apprenticeship programs scheduled for delivery across the state in 2009. This is double that provided by TAFE in 2008. It is anticipated that almost 1600 students will have enrolled in one or more of these pre-employment training programs by the end of 2009. our achievements Pre-apprenticeship • Students enrolled in pre-employment programs were supported to access the full range of pathways available including literacy and numeracy support. Programs featured work placements and were particularly focused on industries with identified skill shortages including Construction, Automotive, Metals, Mining, Electrotechnology, Kitchen Operations and Hairdressing. • The HIA-sponsored youthBUILD initiative commenced and will provide Year 10 pre-vocational ‘taster’ experiences in Northern Tasmania. Articulation to university • The Polytechnic worked closely with the University of Tasmania to establish pathways from the Polytechnic into university education as well as other potential alignments which will serve to enable continued learning and success for students. Pathways include an expanded range of articulation arrangements, preparation and support programs. Communities of Practice • Communities of Practice were established around the state in June, bringing together groups of Polytechnic staff with a shared passion for an element of Polytechnic education to develop it further, thereby contributing to the overall Polytechnic education model which will be fully developed by end 2010. 1. Essential Skills Community of Practice – Polytechnic teachers and student support practitioners who work with the various essential skills and attributes frameworks that are being utilised in general and vocational education, as well as in industry, came together to commence work on a framework which will support and enhance the unique Polytechnic Experience. 2. Problem-based Learning Community of Practice – Work commenced to build capability and approaches for Polytechnic problem-based learning which involves teachers mentoring students undertaking a task with inherent problems to be solved. 3.Community Building Community of Practice – Members commenced work to collaboratively identify and develop up to six community building projects for Polytechnic ‘sponsorship’ to provide ongoing opportunities for vocational and essential skills learning and ‘give’ to the community. Students will ‘learn’ on the project – and then ‘give’ the results to the community. 4. FACS (Flexible, Applied, Connected and Supported) Learning Community of Practice – Members began investigating good practice, developing new approaches, trialling and evaluating specific projects and sharing experiences across the organisation in order to establish a powerful teaching and learning model for the whole organisation. E-learning initiatives • Six Tasmanian Polytechnic teams were successful in securing $107 388 funding through the Australian Flexible Learning Framework’s E-learning Innovation Project. This funding is enabling diverse and contextualised solutions for learners in the following areas: – Nursing students in Launceston began using RFID (radio frequency identification) tagged equipment to access on-demand, just in time training resources such as video and job aids. – In the South, nursing students filmed each other performing practical tasks and reviewed the material as a reflective learning process. – Microbusiness students connected through web conferencing and online discussions to form groups of students; an alternative to independent self-paced options already in place. – Students in the Certificate III in Library and Information Services began exploring Web 2.0 in response to industry demand for skills in this emerging area. Close collaboration with the University of Tasmania and the State Library will ensure graduates are readily employable. – Migrants used wikis both to access materials for their language and community courses and to create their own pages, developing valuable technology skills and connections with the community. – Trialling of Eportfolios commenced across community services, teacher aide training and children’s services. The Eportfolios will assist learners to develop an online record of their learning journey that can be shared with teachers and potential employers. • The Flexible Learning Team secured $19 811 through the Australian Flexible Learning Framework’s E-Standards for Training program to research issues with the adaptability, reusability and compliance with standards of wikis as a development platform for learning materials. This trial sought to inform the development of standards and guidelines for wikis as a development and delivery platform. Matthew Breen, Mise En Place program. Matthew Breen, Mise En Place program. our products in focus – a canapé with your qualification? The Mise En Place program is a joint partnership between federal group, the Tasmanian Polytechnic and the Tasmanian skills institute, which is designed to train the best cookery apprentices in the state. Mise En Place’ literally means to ‘put in place , and that s exactly what these Jamie Oliver hopefuls will be doing putting in place a rewarding and successful career in Cookery. Melissa Comrie, Mise En Place Facilitator at the Polytechnic, said the prestigious training program dovetailed into an employment sector which offers strong career opportunities. “The participants in this year s program were of an extremely high standard excited and passionate and that is an excellent indication for the future of Tasmania as a culinary destination,” she said. Participants may be placed in apprenticeship positions with Federal Group if they meet the standard required by the organisation. The program ensures the budding chefs begin their apprenticeships with realistic expectations, in addition to the necessary basic skills and experience to immediately contribute to workplace productivity,” Nick Linnett, Group Manager Human Resources for Federal Group said. “The innovative program has significantly enhanced attraction and retention of apprentice chefs across our businesses. Apprentices are also demonstrating high satisfaction and skill levels. A passionate and talented Matthew Breen, 20, from Lenah Valley in Southern Tasmania, heard the program was a great way to kick off his career. Matthew has since completed his work placements at Freycinet Lodge on the East Coast, and at the Henry Jones Art Hotel on Hobart s waterfront. The work placements were really great, and I learnt so much. The pressure was certainly on, which is good, because that s how you learn. All our training with the Polytechnic was hands on, practical and relevant, he said. sTRATegiC foCus AReA 4 ouR RelATionshiPs We can only achieve our goals if all levels of government, community, business and industry believe in and support the Polytechnic’s mission and identity. our strategic focus The Polytechnic will know our customers and stakeholders. We will establish high level advisory arrangements for industry, business, government, parents and the broader community. The Polytechnic will determine mechanisms for community and business input into applied learning. We will engage and involve employers in work-based learning with Polytechnic learners and staff. Improving access and retaining learners from rural and remote communities in Polytechnic education will be paramount. The Polytechnic will collaborate with and maintain close relationships with the Tasmanian Skills Institute and the Tasmanian Academy for seamless and efficient access to post-Year 10 education and training by students. We will identify significant community projects that the Polytechnic can support, which provide staff and students with service learning opportunities. A snapshot of our relationships The Board of the Polytechnic has identified its key stakeholders as: • Learners • Teachers • Parents of young Polytechnic students • Industry • Year 10 students and their parents • Suppliers • Schools • Local government • Community groups, particularly in relation to disengaged young people. our achievements • The first Polytechnic Board stakeholder forum was held in three regions simultaneously around the state in April 2009, with representatives from government, parent, employee and community groups contributing to the shaping of the Polytechnic by providing feedback on elements of the Board’s Corporate Plan. Working with schools and university • The Polytechnic worked hard to develop relationships with the government and non- government school systems to support the transition of students into the Polytechnic. • Work commenced with high schools and district high schools on effective transition processes for Year 10 students. • Consultation with district high schools and skill centres around the state was undertaken to commence the establishment of partnerships and prepare for the transition to the new system. • The Polytechnic worked closely with the Tasmanian Academy and Tasmanian Skills Institute to ensure students receive consistent and clear messages about available post-Year 10 opportunities. • The Polytechnic worked primarily with the University of Tasmania to develop articulation to and from university, with the latter being for university students wanting to transition into the Polytechnic. Working with business and industry • Relationships were developed with local businesses and organisations to enable the Polytechnic to ensure training is relevant, learners graduate ‘work ready’ and there are suitable work placements to support learning as well as to enable the development of tailored programs such as the Mise en Place program with Federal Hotels. Relationships include Federal Hotels, TT-Line, Nursing Board of Tasmania, Australia Post, ForestWorks, statewide Childcare Operators, local Councils and Fairbrother Pty Ltd. • Teaching teams established Enterprise Reference Groups with representatives from the Polytechnic meeting with operators to discuss training and education matters. • Excellent relationships with local business and industry were essential to the Polytechnic’s successful applications for Australian Government funding including the Commonwealth’s Trade Training Centres Initiative and the $1m of training secured under the Productivity Places Program. • Arrangements with the Department of Economic Development were established to support retrenched workers with training options. • Workforce Sector Leaders held regional forums with employment service providers. • In March the Tasmanian Polytechnic was successful in tendering for six Productivity Places Programs in partnership with enterprises within the Health and Community Services sectors. Relationships with families and communities • The Polytechnic forged relationships with a range of external support services to better meet the needs of students. This included working closely with employment agencies, disability services and peak bodies, Indigenous programs, Centrelink and a range of community groups. • The Polytechnic encouraged the involvement of parents/carers of younger students in the learning process particularly at the Newstead, Hobart, Hellyer and Don Campuses where the majority of younger students are based. • Parent/carer information evenings were held early in first term and were well attended. Student reports were posted to parents in mid-May with parent/teacher interviews held a week after. • Campus newsletters were published regularly and sent to students and their communities. • The Polytechnic developed strong working relationships with a range of community agencies and networks including National Disability Services Tasmania and the National Disability Coordination Network, to assist in meeting the learning needs of students living with a disability. Sam Edwards and Jeff Bassinthwaighte. Sam Edwards and Jeff Bassinthwaighte. our relationships in focus – industry shows its support in sponsorship hydro Tasmania, AAMi and the Tasmanian Automobile Chamber of Commerce are some of the businesses that contributed to the personal and professional development of Polytechnic students this year. The support we have received from industry has been amazing, Andrew Harris, Learning Leader, Technology and Trades said. “The message is getting out there that we are preparing people for employment with industry aligned training and Tasmanian businesses are saying, We ll support that! The tools donated by industry assist us in providing training that is valid and relevant, with up to date equipment that is being used in industry,” he said. Technology and Trades at the Polytechnic has come out a winner by partnering with industry; and its students are being supported in real career paths. AAMI generously donated four cars for the Polytechnic s automotive students to pull apart, work on, and put back together again. By supporting the future of the industry now we will reap the benefits further down the track with employees who are trained well and passionate about their work,” Greg Williams, Motor Assessing Manager said. The Tasmanian Automobile Chamber of Commerce (TACC) donated two full automotive tools kits. TACC recognises the valuable role the Polytechnic plays in promoting trades to students as a rewarding career path.” Malcolm Little, General Manager said. TACC represents 370 automotive businesses in Tasmania and is the largest independent employer of automotive apprentices. Hydro Tasmania provided two $500 tool kits to students seriously exploring a career in the industry. We wanted to be able to sponsor high achieving students with something tangible that would contribute to their studies, and provide support for those students seeking a career pathway in Electrotechnology. Matthew Lennon, Programme Manager, Generation, said. “It also provided us with an opportunity to promote employment with Hydro Tasmania. The support we receive from industry means we are better equipped to reach our goals of better qualified Tasmanians and a more productive future.” Mr Harris said. 26 sTRATegiC foCus AReA 5 ouR infRAsTRuCTuRe To provide the full Polytechnic learning experience, the Polytechnic will require the resources necessary to modernise facilities and acquire and maintain learning technology and equipment. IT systems that support the Polytechnic’s business and provide meaningful information and reports will be essential. our strategic focus The Polytechnic will determine key elements of learning environment design and take every opportunity to ensure they are embedded in new and refurbished facilities. Improvements in IT, such as infrastructure stocks and effective applications – including a single student management system – will be one of our objectives, and we will maximise opportunities for funding infrastructure development. A priority will be to ensure equipment is industry-endorsed and current. A snapshot of our infrastructure The Polytechnic operates from 19 campuses statewide, with all but one shared with the Tasmanian Academy or the Tasmanian Skills Institute. There are seven campuses in the south, seven in the north and five in the north west. The Polytechnic, through Shared Services, provides for cafes on 10 campuses around the state. Student accommodation places were available for up to 335 students attending the Tasmanian Polytechnic, Tasmanian Academy and Tasmanian Skills Institute. student accommodation occupancy as at June: As at June 2009, there were approximately 4.6 students per PC (2166 devices to approx 10 000 students). Every staff member at 0.8 FTE and above had access to a dedicated PC or laptop. our achievements Capital works and planning • The Polytechnic commenced development of a Strategic Asset Management Plan to align building infrastructure to the strategic directions of the new organisation. • The Polytechnic won a range of capital submissions. These developments will be focused on supporting the Polytechnic education model as well as sustainability. Successful submissions included the Australian Government’s: – Commonwealth Training Investment Infrastructure for Tomorrow (TIIFT) program funding of $5.8M to construct the Sustainable Tourism and Hospitality Centre on the Wellington site in central Launceston. – Trade Training Centres in Schools program funding of $12M to build Trade Training Centres in George Town, Scottsdale and Bridgewater. – Better TAFE Facilities (BTF) funding of $2.3M to upgrade existing facilities around the state to provide state-of-the art learning areas, enhance energy efficiency and upgrade building components in high-demand learning areas. hostel location 2008 2009 2008 2009 Capacity Capacity occupancy occupancy City Villas Launceston 21 – 21 – Newstead Residence Launceston – 50 – 29 Hellyer Residence Burnie 96 96 62 65 Alanvale Launceston 96 96 52 70 Clarence 93 93 76 92 Total 306 335 211 256 Coupled with funding of $4.5M and $5.1M approved for the Capital Investment Programs 2008/09 and 2009/10 respectively, the Polytechnic’s total capital expenditure will exceed $29 million by the end of 2010. • An audit of major campuses and the development of electronic floor plans was undertaken to improve the utilisation and performance of buildings. • The 50-place Northern Student Accommodation Centre was opened at Newstead Campus in Launceston in June providing increased accommodation in state of the art facilities for students in the region. • An audit of maintenance requirements of facilities was undertaken on the stock managed through Shared Services to ensure all statutory obligations were met. Information and communications technology • A new statewide, VoIP-enabled helpdesk system was selected to be rolled out to provide a single helpdesk solution for all areas of Shared Services including Financial Services, Human Resource Services, ICT Services, Facilities Services and Client Services. • The use of Microsoft’s Biztalk commenced to link systems and their data throughout the organisations as well as with the Department of Education. Use will be expanded to support data accessibility for improved decision making. • The rollout of computers and devices provided through the Australian Government’s Digital Education Revolution commenced which will see approximately 1000 additional PCs for students by early in 2010. • Work began on the development of a new intranet site Phoenix that will use contemporary technology to bring intranets from all three organisations together, assisting the development of a collaborative culture. • A pilot VoIP initiative commenced using Microsoft’s Office Communicator to underpin a new, digitally based, statewide video conferencing system for use in education and training as well as to support internal communications statewide. Trade Training Centres • The Polytechnic secured $12 million in Australian Government funding to establish regional Trade Training Centres, in partnership with clusters of high schools in each of the regions, to establish regional skills hubs. • Centres will be located in Bridgewater, Dorset and George Town and will have industry- standard facilities that will engage our young people in training while increasing the number of qualified people in Tasmania and addressing skills shortages in established and emerging industries. The centres will deliver training in automotive, construction, electro-technology, metals and rural trades. Belinda Eyers and Herryla Dai. Belinda Eyers and Herryla Dai. our infrastructure in focus – new health training facilities Approximately a quarter of a million dollars of infrastructure developments helped transform the Polytechnic s health training centres into innovative, industry aligned facilities. The creation of simulated practical rooms that can be altered to reflect the requirements of a hospital, community or aged care environment is working to meet the needs of students and industry. A new practical room in Launceston was designed from the floor plan of a real health care facility. It includes eight beds as well as fully functional bathroom providing a simulated learning environment that is very close to real life. Similar expansions occurred at Clarence Campus, with enhancements to equipment and learning resources at the Devonport Campus. This enabled learners across the state to experience a truly applied learning environment. Michelle Eastman, Workforce Sector Leader Health and Wellbeing, said each room had simulation mannequins, each known as a ‘SimMan , which have become vital learning tools. SimMan is a lifelike, computerised mannequin that simulates most bodily functions. The mannequins simulate human illness so students can learn by doing treating the patient, which responds accordingly: either recovering or deteriorating depending on the care given,” Michelle said. “He can breathe, cough, moan and demonstrate all the vital observations of any real life client. The new facilities are helping provide students as young as 16 with tangible and rewarding career pathways into the health industry. In conjunction with the opening of the new facilities, a new Introduction to Health program was launched. The program provides a pathway for students into Enrolled Nursing, Aged Care and Home and Community Care. The program offers a high level of applied learning, facilitated through a combination of ‘learning by doing’ and theory based learning. We are working on enticing 16 to 25 year olds into the industry. The industry is very excited about our initiative which allows people to get a taste of working in health in a variety of roles,” Michelle said. sTRATegiC foCus AReA 6 ouR bRAnD AnD RePuTATion To truly be successful, we must take the public with us and ensure that Tasmanians value a Polytechnic education in the same way as other forms of education. our strategic focus The Polytechnic will articulate a relevant and compelling Polytechnic brand, build awareness for the Polytechnic by a broad political, business and community base, and build sub-brands to promote the Polytechnic learning experience. A snapshot of our brand and reputation The Polytechnic’s brand is essentially what the Tasmanian community thinks about the Polytechnic and what they believe we stand for. Considerable work was undertaken to begin the process of positioning the Polytechnic in the hearts and minds of all Tasmanians, to build awareness of what we do and to create ownership in what we are striving to achieve – that is, develop learners who have more productive and fulfilling lives. Work focused on communicating who we are, what we do and how we do it and creating differentiation between ourselves and others. Work was undertaken to: 1. Capture attention and in doing so educate, inspire and encourage student enrolments. 2.Get students to act in building the future they want by gaining the qualifications they need. 3.Build trust, loyalty and understanding of the applied education experience. New and better ways of communicating were researched and introduced. Previously used communication processes were challenged and cost effective and more efficient communications alternatives sought. All communications activities and actions aimed to support the Board’s vision to be socially and environmentally responsible. our achievements • A communications and marketing strategy and plan was developed to ensure focus and consistency in all communications. • A style guide was implemented to ensure a consistent look and feel for all publications, stationery and collateral. • The public website was upgraded to provide an improved look and feel and meet the information needs of staff, students and potential students. • Media stories were released to highlight our student’s successes, and build an understanding of the new Polytechnic. • E-news bulletins and video sound bites were distributed statewide to ensure Polytechnic staff were updated and informed. • Work commenced on the 2010 student handbook and course guide. These were designed to inspire and motivate potential students. • The Polytechnic was represented at key community events, including Agfest. • Graduation events were held statewide to celebrate our students’ successes. our brand and reputation in focus sTRATegiC foCus AReA 7 ouR goVeRnAnCe, finAnCe AnD susTAinAbiliTy The Polytechnic can only achieve its goals with effective governance and the necessary resources to support transition as well as allow for the development of the Polytechnic and its applied learning model. This includes support for individual learners and an enriched learning experience. our strategic focus The Polytechnic will effectively manage its three- year transition to the new Polytechnic education model from 2009–2011. We will establish positive and effective relationships with boards of the Tasmanian Academy and Tasmanian Skills Institute as well as define and achieve Polytechnic financial sustainability including for future investment. The Polytechnic will demonstrate exemplary corporate governance through the operations and activities of the Polytechnic Board and senior management. We will strive to be a socially and environmentally responsible organisation. A streamlined Planning and Performance Measurement strategy will be implemented. A snapshot of our governance, finance and sustainability The Board of the Tasmanian Polytechnic met four times during the first six months of operation. Meetings were held in all three regions: Meeting Campus 4 February Hobart 10 March Alanvale 17 April Campbell St 13 May Devonport At each meeting, the Board was briefed by staff from the campus on the progress of the transition and the issues for the campus, and met with senior staff from the campus. The Tasmanian Polytechnic Board Audit Committee held its inaugural meeting on 30 April 2009. Meetings of the Polytechnic’s Directorate Group and the Polytechnic Strategy Group were held monthly to deliberate on the strategic direction of the organisation. The Polytechnic operates under a purchaser/ provider model with the Tasmanian Government through the Department of Education and Skills Tasmania. Separate agreements or memorandums of understanding (MoUs) exist with those parties to deliver a specified number of Annual Student Hours of Contact (ASHC) and TCE study for Full-Time Equivalent (FTE) students in exchange for funding. These annual agreements were negotiated for 2009 while transition to the new post-Year 10 model continued. our Achievements The Corporate Plan 2009–2012 • In March 2009, the Board worked with senior staff of the Polytechnic to develop the framework for its first Corporate Plan. • The Board Chair and Chief Executive Officer visited a number of applied learning institutions in Singapore, Finland, Ireland and the United States in March/April 2009, to gain further insight into the essential elements of successful Polytechnic education models. Their findings contributed directly to the development of the Corporate Plan. • The Board provided a number of opportunities for key stakeholders to review and provide input to elements of the Corporate Plan and contribute to the shaping of the Polytechnic. These included three regional stakeholder forums held simultaneously in Hobart, Launceston and Burnie on 22 April 2009. The forums were attended by representatives from government, industry, parent, employee and community groups. Polytechnic staff were also consulted about the plan through a senior leaders’ forum and on-campus forums around the state for all staff, as well as an open email invitation to all staff. Polytechnic students were also consulted through an open email. • The Board’s first three-year Corporate Plan was submitted to the Minister at the end of May 2009 in line with the requirements of the Education and Training (Tasmanian Polytechnic) Act 2008 with approval received in June 2009. Financial sustainability • The Tasmanian Polytechnic worked cooperatively with Skills Tasmania to ensure the allocation of the 2009 memorandum of understanding (MoU) ASHC was consistent with the Department of Economic Development and Skills Tasmania’s priorities and assessment of training demand. • The 2009 MoUs with the Department of Education and Skills Tasmania were collaboratively developed and signed. • Other revenue generated or won by the Tasmanian Polytechnic included commercial training revenue, international student revenue, Tas Skills and Skills Equip Tasmanian Government funding, Australian Government funding, retail services, student fees and other miscellaneous revenue. • All ex-TAFE Tasmania and ex-College financial systems, policies and procedures were integrated, resulting in a single statewide system. • The corporate reporting system was rebuilt to allow for the provision of monthly financial reports at an organisation and team level which increased transparency and improved the efficiency of financial management. • Project teams were formed in June to facilitate the transition of Elizabeth and Rosny Colleges into the financial and wider framework. our governance, finance and sustainability in focus – green star facilities northern Tasmania will soon be at the cutting edge of applied learning and sustainable development. state of the art learning facilities will be constructed in launceston to meet the needs of the growing Tourism and hospitality industry. The Tasmanian Polytechnic will build the contemporary ‘Green Star’ facilities at the Wellington Square Campus, as a result of its successful application for over $6 million in Australian Government funding under the Training Infrastructure Investment for Tomorrow (TIIFT) initiative. Tourism is a key driver of economic growth in Northern Tasmania and Eco tourism is a key area of growth in the industry,” Belinda McLennan, CEO of the Tasmanian Polytechnic said. “This project will enable the Polytechnic to respond to both these elements, as well as the need for sustainable development in the industry. The new facilities will be ‘Green Star’ rated, meaning they will provide substantially better environmental outcomes, and have a reduced carbon footprint. They include two commercial standard training kitchens; bar and coffee service training areas; bakery and butchery facilities; a 50 seat training restaurant and café; flexible learning areas; reception and staff offices; staff and student facilities and change rooms; and a dedicated eco tourism area. This project will use green technology, not only in the infrastructure but also in the training of Tourism and Hospitality which will, in turn influence attitudes and work practices in the industry, MsMcLennansaid.Thedesignwillcomplimentsurroundingheritagelistedbuildingswhilestillbeing high tech. The project represents an opportunity to refocus on the growing demands of the industry by providing modern, green learning facilities for workforce development. In partnership with industry and the community we will create a modern, world class centre of excellence for tourism and hospitality training,” Ms McLennan said. ConsulTAnTs & ConTRACTs The Tasmanian Polytechnic’s policy on procurement of goods and services reflects the principle contained in the Tasmanian Government’s Handbook for Government Procurement. The Tasmanian Polytechnic required that businesses were given every opportunity to compete for business to ensure the best value for money for the Tasmanian Government. summary of Participation by local business (for contracts, tenders and/or quotation processes of $50 000 or over, ex gsT) Total number of contracts awarded Total number of contracts awarded to Tasmanian businesses Total value of contracts awarded $899 406 Total value of contracts awarded to Tasmanian businesses $899 406 Total number of tenders called and/or quotation processes run Total number of bids and/or written quotations received 15 Total number of bids and/or written quotations received from Tasmanian businesses 15 Contracts with a value of $50 000 or over (ex gsT) and excluding consultancy contracts name of contractor location of Description Period of Total value contractor of contract contract of contract $ A E Smith Mornington, TAS Plant Upgrade, May to 299 580 Hobart Campus, July 2009 Block A De Jong & Sons Ulverstone, TAS Devonport Campus April to June 270 000 Constructions Pty Ltd Upgrade, Block A 2009 Stubbs Constructions Pty Ltd Burnie, TAS Don Campus April to June 244 130 2009 Cunic Constructions Hobart, TAS Hobart Campus March to May 85 696 Redevelopment 2009 Consultancy contracts with a value of $50 000 or over (ex gsT) name of consultant location of Description Period of Total value consultant of consultancy consultancy of NIL finAnCiAl sTATeMenTs Income Statement 36 Balance Sheet 37 Cash Flow Statement 38 Statement of Changes in Equity 39 Notes to and forming part of the Financial Statements 40 Statement of Certification 53 Independent Audit Report 54 inCoMe sTATeMenT For the 6 month period ended 30th June 2009 6 Months to 30 Jun 09 Note $’000 Revenue and other income Government revenue 3 40 588 Fees, levies and charges 4 3 754 Revenue from commercial services 5 1 737 Other revenue 6 2 038 Shared Services contribution 7 4 699 Total Revenue and other income 52 816 expenses Employee expenses Employee related expenses Depreciation expense Other expenses Total expenses 8 9 10 11 38 514 2 587 5 813 10 333 57 247 net Deficit before Assets identified Assets identified net Deficit 27 (4 431) 234 (4 197) The above Income Statement should be read in conjunction with the accompanying notes. bAlAnCe sheeT As at 30th June 2009 AsseTs Current Assets Cash and cash equivalents Note 12 30 Jun 09 $’000 7 032 Trade and other receivables Inventories Other current assets Total Current Assets 13 14 15 4 280 225 388 11 925 non-Current Assets Property, plant and equipment Total non-current Assets Total Assets 16/17 264 973 264 973 276 898 liAbiliTies Current liabilities Trade and other payables 18 2 920 Employee benefits 19 5 040 Other current liabilities 20 1 863 Total Current liabilities 9 823 non-current liabilities Employee benefits 19 11 017 Other non-current liabilities 21 729 Total non-current liabilities 11 746 Total liabilities 21 569 neT AsseTs 255 329 eQuiTy Accumulated deficits 22 (4 197) Contributed equity 22 259 526 ToTAl eQuiTy 255 329 The above Balance Sheet should be read in conjunction with the accompanying notes. CAsh floW sTATeMenT For the 6 month period ended 30th June 2009 CAsh floWs fRoM oPeRATing ACTiViTies Cash inflows Note6 Months to 30 Jun 09 $’000 Recurrent receipts Commercial receipts Fee receipts Other income received in advance Interest received GST collected from customers Other cash receipts Total Cash inflows 33 688 871 4 663 1 557 116 4 680 6 669 52 244 Cash outflows Employee payments Supplier payments GST paid to ATO and suppliers Other payments Total Cash outflows net Cash from operating Activities 23 38 356 5 696 5 031 3 102 52 185 59 CAsh floWs fRoM inVesTing ACTiViTies Capital receipts Payments for acquisition of assets net Cash from investing Activities 4 210 (3 086) 1 124 Net Increase in cash and cash equivalents Cash and cash equivalents at beginning of the reporting period Cash and Cash equivalents at end of Reporting Period 12 1 183 5 849 7 032 The above Cash Flow Statement should be read in conjunction with the accompanying notes. sTATeMenT of ChAnges in eQuiTy For the 6 month period ended 30th June 2009 6 Months to 30 Jun 09 $’000 Net deficit for the period (4 197) Total recognised income and expense for the period (4 197) The above Statement of Changes in Equity should be read in conjunction with the accompanying notes. noTes To AnD foRMing PART of The finAnCiAl sTATeMenTs For the 6 month period ended 30th June 2009 1. Current and future Arrangements and After balance Day events Under the State Government’s Tasmania Tomorrow initiative, the Tasmanian Polytechnic (“the Polytechnic”) was created as a Statutory Authority under the Education and Training (Tasmanian Polytechnic) Act 2008, and commenced business on 1st January 2009. The Tasmania Tomorrow initiative will see, over a three year transition period, certain areas of the eight state senior secondary colleges which offer post-Year 10 learning within Tasmania, become part of the Polytechnic. These colleges were formerly administered by the Department of Education. The Polytechnic has a statutory requirement to work collaboratively with the Tasmanian Skills Institute (“the Skills Institute”) and the Tasmanian Academy (“the Academy”) so as to maximise the qualifications and skills of Tasmanians obtained through education and training undertaken after the completion of Year 10. Four of the state senior secondary colleges took part in the first stage of the Tasmania Tomorrow initiative. They were Don College in Devonport, Hellyer College in Burnie, Hobart College in Hobart and Newstead College in Launceston. From the 1st January 2010, it is intended that areas of Elizabeth College and Rosny College which relate to the core functions of the Tasmanian Polytechnic will transfer from the Department of Education. From the 1st January 2011, it is intended that the areas of Claremont College and Launceston College which relate to the core function of the Tasmanian Polytechnic will transfer from the Department of Education. There is a Shared Services Division which is designed to provide common administrative functions to all three organisations. These administrative functions include the provision of systems and staff relating to Financial Services, Human Resources, Client Services, Student Management, Information Technology, Capital Planning and Facilities Management. The Shared Services Division is contained within the Polytechnic, and the costs of providing these services are charged out to all three organisations on a regular basis. The recovery of costs for these services can be found at note 7. The assets and liabilities of the Polytechnic were created through the amalgamation of TAFE Tasmania and the participating state senior secondary colleges (Don, Hobart, Hellyer and Newstead). In accordance with the enabling legislation, the Minister for Education, transferred the agreed assets, liabilities, contracts and staff to the Polytechnic. This transfer was effective from 1 January 2009 and was recorded at fair value by the Polytechnic. To support continued operations over the next 12 months the Secretary for the Department of Education, on behalf of the Minister, has provided the Board of the Polytechnic with a letter of comfort which confirms that the Department, through the Memorandum of Understanding, will continue to fund the Polytechnic for 2009–10 financial obligations in relation to services as contracted. 2. statement of significant Accounting Policies (a) Statement of Compliance The Financial Statements are a general purpose financial report and have been prepared in accordance with the Australian Accounting Standards, Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board, Education and Training (Tasmanian Polytechnic) Act 2008 and the Treasurer’s Instructions issued under the provisions of the Financial Management and Audit Act 1990. Compliance with the Australian Accounting Standards (AASBs and AASs) may not result in compliance with International Financial Reporting Standards (IFRS), as the AASBs and AASs include requirements and options available to not-for-profit organisations that are inconsistent with IFRS. The Polytechnic is considered to be not-for-profit and has adopted some accounting policies under AASBs and AASs that do not comply with IFRS. These financial statements are for the six month period ended 30 June 2009. Except where stated, the financial statements are in accordance with the historical cost convention. (b) Impact of New and Revised Accounting Standards In the current year, the Polytechnic has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board that are relevant to its operations and effective for the current annual reporting period. These include: • AASB 2008–10 Amendments to Australian Accounting Standards: Reclassification of Financial Instruments permits the reclassification of certain non-derivative financial assets. The Polytechnic does not intend on reclassifying its financial assets in the current period, accordingly there will be no financial impact. • AASB 2007–9 Amendments to Australian Accounting Standards arising from the Review of AASs 27, 29 and 31 – The primary focus of this Standard has been on relocating, where necessary, the requirements in AASs 27, 29 and 31, substantively unamended (with some exceptions), into topic-based Standards. The Standard will not have a material financial impact on the Financial Statements. • AASB Interpretation 14 AASB 119 the Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction – The interpretation clarifies when refunds or reductions in future contributions in relation to defined benefit assets should be regarded as available and provides guidance on the impact of minimum funding requirements on such assets. It also gives guidance on when a MFR might give rise to a liability. The Interpretation will not have a material financial impact on the Financial Statements. The following applicable Standards have been issued by the AASB and are yet to be applied: • AASB 2007–6 Amendments to Australian Accounting Standards Arising from AASB 123 – revised Standard to be applied in reporting periods beginning on or after 1 January 2009. Eliminates the option of expensing borrowing costs directly attributable to the construction or production of qualifying assets, instead requiring capitalisation. The transitional provisions apply for prospective application as a result there will be no retrospective financial impact on the 2009 Financial Statements. • AASB 2007–8 Amendments to Australian Accounting Standards Arising from AASB 101 – revised Standard to be applied in reporting periods beginning on or after 1 January 2009. The Standard will not have a financial impact on the Financial Statements but will require a number of changes in disclosures. • AASB 2007-10 Further Amendments to Australian Accounting Standards arising from AASB 101 – revised Standard to be applied from reporting periods beginning on or after 1 January 2009. This Standard changes the term “general purpose financial report” to “general purpose Financial Statements” and the term “financial report” to “Financial Statements”, where appropriate, in Australian Accounting Standards (including Interpretations) and the Framework to better align with IFRS terminology. The Standard will not have a financial impact on the Financial Statements. • AASB 2008–3 Amendments to Accounting Standards arising from AASB 3 and AASB 127 – revised Standard to be applied to annual reporting periods beginning on or after 1 July 2009. The focus of the Standard is to reduce alternatives in accounting for subsidiaries in consolidated Financial Statements and in accounting for investments in the separate Financial Statements of a parent. The Standard will not have a material financial impact on the Financial Statements. • AASB 2008–5 Amendments to Australian Accounting Standards arising from the Annual Improvements Project – revised Standard to be applied from reporting periods beginning on or after 1 January 2009. The amendments to some Standards result in accounting changes for presentation, recognition or measurement purposes, while some amendments that relate to terminology and editorial changes are expected to have no or minimal effect on accounting. The Standard will not have a material financial impact on the Polytechnic’s Financial Statements. • AASB 2008–6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project – revised Standard to be applied from annual reporting periods beginning on or after 1 July 2009. This Standard amends AASB 1 and AASB 5 to include requirements relating to a sale plan involving the loss of control of a subsidiary. The amendments require all the assets and liabilities of such a subsidiary to be classified as held for sale and clarify the disclosures required when the subsidiary is part of a disposal group that meets the definition of a discontinued operation. The Standard will not have a financial impact on the Financial Statements. • AASB 2008–7 Amendments to Australian Accounting Standards – Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate – revised Standard to be applied from reporting periods beginning on or after 1 January 2009. The Standard removes the requirement to deduct dividends declared out of pre-acquisition profits from the cost of an investment in a subsidiary, jointly controlled entity or associate and to include recognising a dividend from a subsidiary, jointly controlled entity or associate, together with other evidence, as an indication that the investment in the subsidiary, jointly controlled entity or associate may be impaired. The Standard will not have a financial impact on the Financial Statements. • AASB 2008–13 Amendments to Australian Accounting Standards arising from AASB Interpretation 17 – Distributions of Non-cash Assets to Owners – revised Standard to be applied from annual reporting periods beginning on or after 1 July 2009. The amendments are in respect of the classification, presentation and measurement of non current assets held for distribution to owners in their capacity as owners and the disclosure requirements for dividends that are declared after the reporting period but before the Financial Statements are authorised for issue, respectively. The Standard will not have a material financial impact on the Polytechnic’s Financial Statements. (c) Valuation of Non-Current Assets All non-current physical assets other than land and buildings are recorded at historic cost. Land is recorded at fair value and buildings are recorded at depreciated replacement cost. Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction. Land and buildings are re-valued on a three-yearly basis and were last re-valued as at 31st December 2008 by the Australian Valuation Office. Libraries are re-valued on a five-yearly basis. Purchases between valuation dates are expensed and will generally equate to depreciation charges. Due to the small value of library stock the Polytechnic believes a full depreciation regime in accordance with AASB 116 Property, Plant and Equipment is not warranted. Libraries were re-valued by the Australian Valuation Office as at 30 June 2008. All other non-current assets held prior to transfer to the Polytechnic were recognised at their depreciated written down value as at 1 January 2009. Any assets acquired since this date have been recorded at purchase price. The asset capitalisation threshold adopted is $5 000. Assets costing less than $5 000 are charged to the Income Statement in the year of purchase. Assets are grouped on the basis of having a similar nature or function. (d) Depreciation of Non-Current Assets All non-current assets having a limited useful life are systematically depreciated over their useful lives in a manner that reflects the consumption of their service potential. Land, being an asset with an unlimited useful life, is not depreciated. Depreciation is provided for on a straight line basis, using economic life information provided at the date of valuation or acquisition. Depreciation periods for each class of asset are as follows: Buildings 40 years Computer equipment 3 or 5 years Motor vehicles 10 years Office equipment 10 years Plant and equipment 20–30 years (e) Impairment of Assets The carrying value of tangible assets is reviewed for impairment when events or changes in circumstances indicate that the carrying value may exceed the recoverable amount. The asset is then written down to the recoverable amount. Recoverable amount is the greater of fair value less costs to sell and value in use. All impairment losses are recognised as an expense in the Income Statement. (f) Cash and Deposits Cash means notes, coins and any deposits held at call with a bank or financial institution. Deposits are recognised at amortised cost, being their face value. (g) Employee Benefits Employee benefits include entitlements to wages and salaries, annual leave, long service leave and superannuation. Liabilities for wages and salaries and annual leave are recognised when an employee becomes entitled to receive a benefit. Those liabilities expected to be realised within 12 months are measured as the amount expected to be paid. Other employee entitlements are measured as the present value of the benefit at 30 June 2009, where the impact of discounting is material, and at the amount expected to be paid if discounting is not material. A liability for long service leave is recognised, and is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Superannuation i. Defined Contribution Plans A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognised as an expense when they fall due. ii. Defined Benefit Plans A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Polytechnic does not recognise a liability for the accruing superannuation benefits of employees. This liability is held centrally and is recognised within the Finance-General Division of the Department of Treasury and Finance. (h) Inventories Inventories are carried at the lower of cost and current replacement cost. Costs are assigned to inventory quantities on hand and in store at balance date using the first in first out principle. No values have been placed on inventories issued to operating departments. (i) Leases It is not the practice of the Polytechnic to enter into finance leases. The Polytechnic has entered into a number of operating lease agreements for buildings, office equipment and motor vehicles where the lessors effectively retain all the risks and benefits incidental to ownership of the items. Equal instalments of the lease payments are charged to the Income Statement over the lease term as this is representative of the pattern of benefits to be derived from the leased property. (j) Income Tax The Polytechnic, as a Statutory Authority, is not required to pay Income Tax and tax-effect reporting is not required. (k) Receivables All receivables are due within 30 days and are carried at amounts due. The collectability of debts is assessed at balance date and specific provision is made for any impaired accounts. The net fair value of receivables is the nominal amount. (l) Payables Liabilities are recognised for amounts to be paid in the future for goods or services received, whether or not billed. Trade accounts payable are settled in accordance with creditor terms. The net fair value of payables is the nominal amount. (m) Segment Reporting The Polytechnic provides vocational training across the State and as such, it is considered that operations are undertaken in a single industry and geographic segment. (n) Rounding Figures included in the financial statements have been rounded to the nearest thousand dollars. (o) Revenue Recognition Revenues are recognised in the Income Statement when it is probable that the inflow or other enhancement or saving in outflows of future economic benefits has occurred and can be measured reliably. Revenues from Government Revenues from government are recognised as revenues in the period in which The Polytechnic gains control of the funds. Revenue from Government is illustrated in more detail at note 3. Commonwealth Grants Grants payable by the Commonwealth Government are recognised as revenue when the Polytechnic gains control of the funds. Fees, Levies and Charges Student fees, levies and charges are recognised on enrolment of the student unless the fees relate to a future academic year. Interest Interest revenue is recognised as it accrues. Gross Proceeds From the Disposal of Assets Revenue from the sale of non-current assets is recognised when control of the asset has passed to the buyer. Contributions Received Services received free of charge by the Polytechnic, are recognised as revenue when a fair value can be reliably determined and at the time the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. (p) Expenses Expenses are recognised in the Income Statement when a decrease in future economic benefits related to a decrease in asset or an increase of a liability has arisen that can be measured reliably. (q) Goods and Services Tax Revenues, expenses and assets are recognised net of the amount of goods and service tax (GST), except where the amount of the GST incurred is not recoverable from the Australian Tax Office (ATO). In these circumstances the GST is recognised as part of the expense. Receivables and payables are stated with the amount of the GST included. The net amount of GST recoverable from, or payable to, the ATO is included as an asset or liability in the Balance Sheet. Cash flows are included in the Cash Flow Statement on a gross basis. The GST components of cash flows arising from investing and financing activities, which are recovered from, or paid to, the ATO, are classified as operating cash flows. (r) Concession Policy The Polytechnic provides concessions and exemptions of service fees for students under various circumstances as per the Polytechnic’s Student Fees Policy. These fees are not recorded in student fees revenue and no expense is recognised for revenue forgone. (s) Judgements and Assumptions In the application of Australian Accounting Standards, the Polytechnic is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements. 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. Judgements made by the Polytechnic that have significant effects on the financial statements are disclosed in the relevant notes to the financial statements. The Polytechnic has made no assumptions concerning the future that may cause a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. 3. government Revenue The Polytechnic’s principal source of funding was via Memorandums of Understanding with the Minister for Education and Skills Tasmania. This provided recurrent funding to be used for the provision of vocational education and training (VET) and educational services. Further sources of government income include both State and Commonwealth grants for the provision of specific training services. The components of government income are as follows: 30 Jun 09 $’000 Memorandum of Understanding recurrent 33 451 Capital funding 4 210 Commonwealth sources 2 745 Other state grants 72 Competitive bids 110 40 588 4. fees, levies and Charges Fees are shown net of refunds. Student fees 2 069 International students 1 685 3 754 5. Commercial services Delivery programs may generate funds through commercial training activities provided on a fee for service basis or by the provision of retail trading operations, which are a by product of training activities. The components of commercial services income are: Retail services 1 224 Commercial training 513 1 737 6. other Revenue Interest received 104 Sundry revenue 1 934 2 038 7. shared services Contributions Shared Services contribution 4 699 4 699 As stated in Note 1, the Shared Services Division provides services to both the Academy and the Skills Institute. These contributions represent the recovery of costs from these organisations for the delivery of services. 8. employee expenses 30 Jun 09 $’000 Salaries teaching 16 980 Salaries non-teaching 13 380 Casual teaching 956 Casual non-teaching 114 Superannuation 3 298 Movement in employee benefits 3 786 38 514 Superannuation expenses relating to defined benefits schemes are paid to the Department of Treasury and Finance to be held in the Superannuation Provision Account (SPA). These payments are held centrally and recognised within the Finance General Division of the Department of Treasury and Finance. The amount of the payment is based on an employer contribution rate determined by the Treasurer, on the advice of the State Actuary. The current employer contribution is 11 per cent of salary. Superannuation expenses relating to a contribution scheme are paid directly to the superannuation fund at a rate of nine per cent of salary. The Polytechnic is also required to pay into the SPA a payment equivalent to two per cent of salary in respect of employees who are members of a contribution scheme. 9. employee Related expenses Payroll tax 2 202 Fringe benefits tax 63 Workers compensation insurance 232 Other 90 2 587 10. Depreciation expense 30 Jun 09 $’000 Buildings 5 427 Computer equipment 268 Office equipment 77 Plant and equipment 32 Motor vehicles 9 5 813 11. other expenses Other operating expenses are those items which by themselves do not represent a material amount of expenditure. The components of other operating expenses are as follows: Administration expense 581 Audit fees – external 65 Audit fees – internal 20 Communications 938 Computer processing 552 Consultancies 341 Contractors 283 Cost of goods sold 560 Farm costs 14 Financial expenses 165 Insurances 120 Marketing and advertising 215 Materials and supplies 1 160 Minor equipment purchases 393 Motor vehicle expenses 108 Operating leases 465 Power and heating 1 007 Printing and copyright 265 Property services 1 290 Repairs and maintenance 1 337 Travel 454 10 333 12. Cash and Cash equivalents For the purpose of the Cash Flow Statement and Balance Sheet, cash included cash on hand and held in the bank accounts. Cash at the end of the reporting period as shown in the Cash Flow Statement and the Balance Sheet comprise: 30 Jun 09 $’000 Westpac operating account 6 756 Cash on hand 26 Short term investments 250 7 032 13. Trade and other Receivables Sundry debtors 4 238 Less: Provision for impairment – sundry (22) International education debtors 54 Less: Provision for impairment – international – Other receivables 4 280 Of the Sundry debtors outstanding at 30th June 2009, Skills Tasmania had an outstanding balance of $3.195 million, of which $2.69 million related to the April to June Memorandum of Understanding instalment. 14. inventories Stock on hand 225 15. other Current Assets Prepaid expenses 380 Accrued revenue 8 388 16. non-Current Assets 30 Jun 09 $’000 Land At independent valuation 19 335 19 335 Buildings At independent valuation 239 375 Accumulated depreciation (5 427) 233 948 Plant and equipment At cost 934 Accumulated depreciation (32) 902 Motor vehicles At cost 172 Accumulated depreciation (9) 163 Office equipment At cost 921 Accumulated depreciation (77) 844 Computer equipment At cost 2 073 Accumulated depreciation (268) 1 805 Heritage assets and works of art At cost 20 Libraries At independent valuation 5 031 5 031 Capital works in progress At cost 2 925 2 925 264 973 All independent valuations were performed by John Armatys AAPI (Certified Practicing Valuer) of the Australian Valuation Office. non-Current Assets as at 30 June 200917. Add Less Additions additionsdisposals Add Less Carrying on and and Less assets Add/less disposals depreciation amount at formation transfers transfers held for sale revaluations depreciation expense end of year 01 Jan 30 Jun 20092009200920092009200920092009$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 land 19 300 35 –––– 19 335 buildings 239 176 199 ––– (5 427) 233 948 Plant and equipment 934 –––– (32) 902 Motor vehicles 172 –––– (9) 163 office equipment 898 24 ––– (77) 844 Computer equipment 2 052 21 ––– (268) 1 805 heritage and works of art 20 ––––– 20 libraries 5 031 ––––– 5 031 Work in progress 118 2 807 –––– 2 925 267 701 3 086 – – – – (5 813) 264 973 18. Trade and other Payables 30 Jun 09 $’000 Sundry creditors 2 295 Net GST payable to the ATO 625 2 920 19. employee benefits Current Accrued salaries 1 198 Annual leave 3 083 Long service leave 735 State service accumulated leave scheme 24 Total current 5 040 Non-Current Long service leave 11 017 Total non-current 11 017 Total employee benefits 16 057 20. other Current liabilities Income received in advance 1 557 Payroll tax on employee benefits 306 1 863 21. other non-Current liabilities Payroll tax on employee benefits 672 Bequest and trust funds 57 729 22. equity and Changes in equity Deficit for the year (4 197) Accumulated deficit at the end of the period (4 197) Contributed equity during the period 259 526 Total Equity at end of period 255 329 The following are the details of contributed equity as approved by the Minister for Education: 30 Jun 09 $’000 Cash 6 823 Receivables 719 Inventories 212 Other 1 652 Land 14 760 Buildings 192 059 Plant and Equipment 934 Motor Vehicles 172 Office Equipment 898 Computer Equipment 2 052 Heritage 20 Libraries 5 031 Revenue Received in Advance (974) Payables (1 860) Employee benefits (13 337) Other (1 410) Contributed equity 207 751 In addition, the Polytechnic has recognised the following assets under the provisions of AASB 116 Property, Plant and Equipment. Land 4 540 Buildings 47 235 Contributed equity 51 775 Total Contributed equity 259 526 Represented by: Contributed Equity – TAFE Tasmania 210 422 Contributed Equity – Department of Education 49 104 Total Contributed equity 259 526 These assets formerly formed part of the asset portfolio of the Department of Education. Whilst the Minister for Education is yet to formerly transfer the assets, and the Polytechnic to accept the transfer, the Polytechnic considers it is probable that future economic benefit will flow to the entity from the use of the assets, and that the cost of the assets can be measured reliably. 23. Reconciliation of net Cash used in operating Activities to net Deficit 30 Jun 09 $’000 Net deficit (4 197) Depreciation 5 813 Capital funding (4 210) Decrease/(increase) in receivables (3 560) Decrease/(increase) in inventories (12) Decrease/(increase) in other current assets 1 265 Increase/(decrease) in payables 1 239 Increase/(decrease) in employee benefits 2 306 Increase/(decrease) in other current liabilities 1 067 Increase/(decrease) in other non-current liabilities 114 Other non-cash movements 234 Net Cash From Operating Activities 59 24. Commitments Operating Lease Commitments The Polytechnic entered into operating lease arrangements for buildings, office equipment and motor vehicles. At the reporting date, the Polytechnic held the following obligations under non-cancellable operating leases (these obligations are not recognised as liabilities). Not later than one year 669 Later than one year and not later than five years 203 872 The majority of the Polytechnic’s leases are represented by building rental costs and vehicle lease costs. Building leases provide the Polytechnic with a right of renewal at which time all terms are renegotiated. These leases have renewal options exercisable at the sole discretion of the lessee. There are no building leases, which have renewal rights exercisable at the sole discretion of the lessor. Operating lease expenses for the period ended 30 June 2009 included in Note 11 are as follows: 30 Jun 09 $’000 Actual lease payments Capital Expenditure Commitments The Polytechnic entered into capital expenditure arrangements for capital works projects involving buildings and infrastructure. At the report date, the Polytechnic held the following obligations for capital works contracted for but not provided and payable (these obligations are not recognised as liabilities) Not later than one year 1 374 Later than one year and not later than five years – 1 374 Unquantifiable Contingencies The Polytechnic is in dispute with public sector unions with respect to aspects of the Tasmanian State Service Award and the Miscellaneous Workers (Public Sector) Award. One possible outcome of these disputes is that some additional payments may be made to some employees. At the current stage of the negotiations the Polytechnic is not able to estimate whether there is any liability on its part and, if there is, the amount of it. 25. financial instruments (a) Risk Management Policies The Polytechnic has exposure to the following risks from its use of financial instruments: • credit risk; • liquidity risk; and • market risk. The Audit Committee, under authority of the Board, has overall responsibility for the establishment and oversight of the Polytechnic’s risk management framework. Risk management policies are established to identify and analyse risks faced by the Polytechnic, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. The carrying amounts of all financial instruments are considered as representing their net fair value. (b) Credit Risk Exposure Credit risk is the risk of financial loss to the Polytechnic if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the Polytechnic’s maximum exposure to credit risk. Student enrolment fees are due and payable within 30 days of enrolment. In certain circumstances, instalment payment plans may be negotiated for financially disadvantaged individuals. The Polytechnic has a debt management cycle which sees the analysis and investigation of all debts outstanding undertaken on a monthly basis. The Polytechnic reviews all debts exceeding 6 months and writes off those considered uncollectible. The Polytechnic minimises concentrations of credit risk by undertaking transactions with a large number of customers. The following tables analyse financial assets that are past due but not impaired. Analysis of financial assets that are past due at 30 June 2009 but not impaired Type 0–30 days $ ‘000 31–60 days $ ‘000 61–90 days $ ‘000 +91 days $ ‘000 Total $ ‘000 Receivables 3 800 370 59 51 4 280 (c) Liquidity Risk Liquidity risk is the risk that the Polytechnic will not be able to meet its financial obligations as they fall due. The Polytechnic’s approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when they fall due. The Polytechnic operates within Australia and has minimal domestic debt. The Polytechnic analyses its liquidity requirements on a daily basis via reconciliation of its operating bank account and analysis of upcoming accounts payable transactions. All payables declared within these financial statements are considered to be a current liability. The Polytechnic expects that all payables accrued as at 30th June 2009 will be paid within 30 days. (d) Market Risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The Polytechnic has no derivative financial instruments. Interest Rate Risk The primary market risk that the Polytechnic is exposed to is interest rate risk. The Polytechnic does not levy interest on its Receivables, nor does it expect to pay interest on the payables declared within these statements. The Polytechnic interest-bearing cash assets are all held at-call. The assets include a Westpac operating account and a short term investment account. The Polytechnic monitors its liquidity requirements on a daily basis and transfers funds between these accounts. At the reporting date the interest rate profile of the Polytechnic’s controlled interest bearing financial instruments was: 30 Jun 09 Controlled variable rate instruments $ ‘000 Financial assets 7 032 Financial liabilities – Total 7 032 Cash is held at call. At reporting date this was paying interest at an average rate of 2.94 per cent. Changes in variable rates of 100 basis points at reporting date would have the following effect in the Polytechnic’s surplus or deficit and equity. The following analysis assumes all other variables remain constant. Sensitivity Analysis of the Polytechnic’s exposure to possible changes in interest rates Surplus or (deficit) Equity 100 basis points increase $ ‘000 100 basis points decrease $ ‘000 100 basis points increase $’000 100 basis points decrease $’000 30 June 2009 At-call accounts (4 156) (4 229) 255 370 255 297 Net sensitivity (4 156) (4 229) 255 370 255 297 Currency Risk Joint venture training partnerships are being conducted with two overseas colleges in Kuwait and China. The revenue from these partnerships generates approximately 0.5% of the Polytechnic’s total revenue. Contractual requirements dictate that payments to the Polytechnic from these partnerships are to be in Australian dollars. The Chinese contract sees the Polytechnic entitled to collect a percentage of the enrolment fees paid by students to receive training. These fees are levied by the Chinese-based College in the local currency. This exposes the Polytechnic to possible losses from date of invoice from fluctuations brought about by foreign currency exchange markets. The amounts involved mean the fluctuations are not significant and the Polytechnic has sought to mitigate any losses sustained due to the effect of this exposure through renegotiation of these contracts. At reporting date there was nothing in the outstanding Receivables amount which related to the Chinese joint venture. The Kuwait contract requires all transactions to be made in Australian dollars, and as such, does not expose the Polytechnic to currency fluctuation risks. 26. Auditor’s Remuneration Amounts received, or due and receivable by the Auditor-General from the Polytechnic for auditing the final financial statements of the Polytechnic are $65 000 exclusive of GST. 27. Assets identified At commencement of the Polytechnic, it was identified that a workshop and piece of land at Queenstown, which was an asset of the former TAFE Tasmania, had been removed from the asset register in error prior to the end of TAFE Tasmania. The workshop had a valuation amount of $198,800 as at 31 December 2007 and the land a value of $35,000. Although not considered material, the Polytechnic has recognised these assets under AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors. sTATeMenT of CeRTifiCATion inDePenDenT AuDiT RePoRT