The Victorian technical and further education (TAFE) sector delivers vocational education and training (VET) throughout Victoria. VET courses equip students with the practical and educational skills required for a variety of careers.

The sector is made up of 12 TAFE institutes and their 16 controlled entities. Since the financial result of each controlled entity is consolidated into its parent entity, we do not discuss them separately. Appendix B lists all 28 entities.

Figure 1A shows the TAFEs that operate across Victoria.

In the technical and further education (TAFE) sector, there are 12 state-owned TAFE institutes, which control a further 16 entities that operate in the vocational education and training (VET) sector. We conduct the financial audits of all of these 28 entities. This report outlines the results of, and our observations from, these financial audits for the year ended 31 December 2016. We also discuss the performance reports that TAFEs prepare and we audit, and analyse the financial results and outcomes for the 12 TAFEs.

Ordered to be published

VICTORIAN GOVERNMENT PRINTER June 2016

 PP No 260, Session 2014-2017

The Department of Education and Training's (DET) asset reforms focus on four key areas—funding, capability, accountability and efficiency. These initiatives should give DET adequate oversight of schools' asset management and enable it to fulfil its accountability to the Minister for Education. Figure B1 outlines the key reforms in each area.

Figure B1

Key DET reforms

Introduction

We have professionally engaged with the Department of Education and Training throughout the course of the audit. In accordance with section 16(3) of the Audit Act 1994 we provided a copy of this report or relevant extracts to this agency, and requested its submissions and comments. We also provided a copy to the Department of Premier and Cabinet.

Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.

The full response from the Department of Education and Training is provided below.

The Victorian Government's Asset Management Framework and international asset management standards consistently identify that effective management of assets involves knowing the type and nature of the assets being managed, knowing the state that they are in, quantifying what needs to be addressed, and prioritising available funds to address identified and unexpected problems.

The Department of Education and Training (DET) is responsible for providing a government school place for every Victorian student who chooses a public education.

Before 2011, the number of students in Victoria was relatively stable. Since then, Victoria's population has experienced significant growth and is projected to keep rising in many areas.

A strategic planning framework is integral to an agency's ability to make sound business decisions and effectively meet its obligation to be fully accountable. It is the mechanism through which an agency outlines its objectives, sets its performance targets, identifies strategies and actions, and allocates resources and responsibilities.

To achieve its objectives, an agency needs sound project planning. It must also monitor and evaluate whether its activities are achieving the desired outcomes.