Appendix B. Audit Act 1994 section 16—submissions and comments
Introduction
In accordance with section 16(3) of the Audit Act 1994 a copy of this report was provided to the Department of Education and Early Childhood Development, the Department of Treasury and Finance, the Holmesglen Institute of TAFE and the Victorian Skills Commission with a request for submissions or comments.
Responses were received as follows:
Appendix A. Events relevant to the financial arrangement
A complex series of events led up to the decision by Holmesglen Institute of TAFE (Holmesglen) to make a loan to a Registered Training Organisation (RTO), as the first step in an acquisition strategy, and continued until the final arrangements were made for settlement of the loan.
The key events are set out in Figure A1 along with the issues and themes raised for the major parties involved; Holmesglen, Skills Victoria and the Department of Treasury and Finance (DTF).
3 TAFE sector oversight
At a glance
Background
The vocational education and training (VET) sector has changed substantially over time with the most fundamental reform being the transition to the fully contestable VET market over the past decade.
2 Holmesglen's financial arrangement
At a glance
Background
Over the past decade Technical and Further Education (TAFE) institutes have been encouraged to grow cash reserves by being entrepreneurial. In this context the Holmesglen Institute of TAFE (Holmesglen) entered into a financial arrangement with a private Registered Training Organisation (RTO). The investment raised critical issues about the legal framework and the exercise of financial prudence in the TAFE sector. The transaction ultimately resulted in a loss of $3 million of public funds.
1 Background
1.1 Introduction
Technical and Further Education (TAFE) institutes provide the majority of reported vocational education and training (VET) in Victoria. VET is designed to equip students with specific workplace skills, including technical skills, through course design significantly influenced by industry.
Audit summary
In Victoria, Technical and Further Education (TAFE) institutes offer vocational programs to meet the needs of industry, individual students and the general community. Each TAFE institute has a high degree of autonomy and is governed by a board which is accountable to the Minister for Higher Education and Skills for its educational and financial performance.
TAFE Governance: Message
Ordered to be printed
VICTORIAN GOVERNMENT PRINTER October 2011
PP No 79, Session 2010–11