Responsibility of public-sector entities to achieve their objectives in the reliability of financial reporting; effectiveness and efficiency of operations; compliance with applicable laws; and reporting to interested parties.
The systematic allocation of the depreciable amount of an intangible asset over its expected useful life.
An item or resource controlled by an entity that will be used to generate future economic benefits.
Figure E1 shows indicators used in assessing the financial sustainability risks of TAFE institutes. These indicators should be considered collectively and are more useful when assessed over time as part of a trend analysis.
Figure E1
Financial sustainability risk indicators, formulas and descriptions
|
Indicator |
Formula |
Description |
|---|---|---|
|
Net result margin (%) |
Figures D1 shows the performance statement indicators, description and methodology, while Figures D2–D13 show each TAFE institute's reported performance against the four indicators for 2016 to 2018.
Figure D1
Performance statement indicators and formula
|
Indicator |
Description and methodology |
|---|---|
|
Training revenue diversity |
Figure C1 shows the risk ratings we apply to issues we raise, the management action required, and the expected timeline for the issue to be resolved.
Figure C1
Risk definitions applied to issues reported in audit management letters
|
Rating |
Definition |
Management action required |
|---|
Figure B1 lists the entities included in this report, the nature of the opinion and the date the audit opinion was issued to each entity for their 2018 financial reports.
Figure B1
Audit opinions issued for TAFEs and their controlled entities
|
Entity |
Clear audit opinion issued |
|---|
We have consulted with DET and the 12 TAFE entities and we considered their views when reaching our audit conclusions. As required by section 16(3) of the Audit Act 1994, we gave a draft copy of this report, or relevant extracts, to those agencies and asked for their submissions and comments. We also provided a copy of the report to the Department of Premier and Cabinet.
Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.
Responses were received as follows:
To be sustainable, TAFEs need to efficiently manage their resources to respond to future changes and foreseeable risks without compromising the quality of services, and avoid large fluctuations in expenditures and fees.
We have assessed that the sector is financially sustainable in the short term. Figure 3A shows the overview of financial results.
Figure 3A
Overview of financial results
In this Part of the report, we summarise the results of our financial and performance statement audits and observations for the TAFE sector for the year ended 31 December 2018.
The financial and performance reports of the TAFE sector are reliable. Parliament and the community can use them with confidence.
The technical and further education (TAFE) sector delivers vocational education and training (VET) to equip students with practical and educational skills for a variety of careers, and provides pathways to university courses.
Twelve TAFE institutes and their 15 controlled entities make up the TAFE sector in Victoria.
In Victoria, registered training organisations (RTO) also provide VET courses to students. RTOs are private-sector organisations and are not included in this report.
Figure 1A provides an overview of the TAFE sector in Victoria.
Source: VAGO.