2001–02 - Department of Education and Training€¦ · ANNUAL REPORT 2001–02 Membership...

ANNUAL REPORT2001–02Victorian Qualifications Authority

1 October 2002

The Hon. Lynne Kosky, MPMinister for Education and Training2 Treasury PlaceEast Melbourne Victoria 3002

Dear Minister

I am pleased to submit the first annual report of the Victorian Qualifications Authority (VQA) in accordance withthe Financial Management Act 1994 and the VictorianQualifications Authority Act 2000.

The VQA has been in operation since 1 March 2001. Thisannual report documents the establishment and achievementsof the VQA during its first 16 months of operation.

I extend my appreciation to my colleagues on the Authority,the research support group (Expert Panel) and the staff of theVQA for their ongoing commitment and vision.

Yours sincerely

Helen PraetzChair

Report of the Chair 1Report of the Director 2At a glance 3Summary of financial results 10

Operational responsibilities 11Governance, processes and procedures 11Communication 12Accreditation 12STAR database 13Delegations 13

Qualifications policy, research anddevelopment 15

Qualifications research and development 15Victorian Certificate of Applied Learning 16

contentsWider policy frameworks 19Staffing guidelines 19Freedom of Information 19Whistleblowers Protection Act 2001 20Building Act 1993 20Occupational health and safety 20National Competition policy 20Fees and charges 20Major consultancies and contracts 20Additional information available on request 20

Financial report 21

Index of compliance 37

Acronyms and abbreviations 39

2001–02

The Minister for Post Compulsory Education, Training andEmployment, the Hon. Lynne Kosky, commissioned theReview of Post Compulsory Education and Training Pathwaysin Victoria in 2000. The Pathways Review found thatthousands of young Victorians are falling through the cracksin provision every year and dropping out of education or training.

One of the key recommendations was the formation of theVictorian Qualifications Authority (VQA) as part of the reformagenda to improve pathways for all Victorians, especiallyyoung people. The VQA has been charged with taking stockof all post-compulsory education and training (except highereducation), accrediting and certifying eligible qualifications in order to raise standards and increase the flexibility of education.

The VQA comprises members from schools, TAFE institutes,registered training organisations, universities, industry andthe community. This diverse set of backgrounds has providedthe right mix to ensure healthy debate is transferred fromplanning to action. The ex officio membership ensures anAuthority capable of providing a holistic, coordinatedapproach to improving the opportunities for all Victorians to gain qualifications.

The Director, Dr Dennis Gunning, was recruited from theScottish Qualifications Authority and has brought outstandingexpertise and leadership to the VQA.

The VQA has moved rapidly to approve, develop and trial an additional post-compulsory qualification – the VictorianCertificate of Applied Learning (VCAL) – aimed at creatingvocational opportunities and pathways for students. This willassist in achieving the Government’s goals of increasingparticipation in education and training and making lifelonglearning the norm.

We acknowledge the work of others engaged in research and policy development, and particularly the VQA ExpertPanel, for their assistance in monitoring international andlocal developments and in bringing forward ideas.

The VQA looks forward to working with all those who areseeking to develop effective strategies to improve access forall Victorians to worthwhile pathways to employment andfurther learning.

Professor Helen PraetzChair, Victorian Qualifications Authority

Report of the Chair

2

2001–02

The first year of a new organisation’s life can all too easilybecome dominated by internal matters, given the need to set up the systems, procedures and committees that areinevitably required for a new statutory body. The VQA hasindeed dealt with these matters in its first year – but the mainfocus of our activity has been on the regulation and reform of Victoria’s qualifications system.

The scale of achievements of the year, particularly but notexclusively the development and trialing of the VCAL, hasbeen remarkable, given the lean nature of the organisation.That so much has been achieved is thanks to:

• the Chair and Authority members, for their support andcommitment to the development of Victoria’s qualificationssystem

• my colleagues on the staff of the VQA, for their energy andenthusiasm – and their willingness to go the extra mile toliaise with and support VCAL trial sites

• our colleagues in the Department of Education & Trainingand fellow statutory authorities, for mutual support andencouragement.

The Government has set challenging but achievable targetsfor education and training. This report describes the VQA’scentral role in helping to deliver those targets relating to post-compulsory education and training. The development

of the VCAL has been a good start in the pursuit of the targets – but there is much more to do in the future, especially:

• to increase the number of young people who stay in, andachieve a successful outcome within, post-compulsoryeducation and training

• to raise the level of participation of Victorians in lifelonglearning.

The VQA’s strategic plan for 2002–05 includes projects that aim to improve the foundations on which we can buildincreased success and increased participation. At the heartof the plan are projects to widen the pathways available tostudents and to build credit bridges between those pathways.

The VQA may be a lean organisation in terms of size – butthere is nothing lean about its role. Qualifications play a vital role in education and training: they are the basis forplanning of curriculum and individual learning; they open up pathways to employment and further learning; and theyare the reward and recognition of success. In a nutshell,qualifications add value to learning. The VQA intends to be a catalyst for debate about, and development of, Victorianqualifications – and looks forward to working with its manycolleagues and stakeholders to make qualifications work for Victorians.

Dr Dennis GunningDirector, Victorian Qualifications Authority

Report of the Director

Dr Dennis Gunning

2001–02AT A GLANCE

Origins of the Victorian Qualifications Authority The Ministerial Review of Post Compulsory Education and Training Pathways in Victoria was commissioned by then the Minister for Post Compulsory Education,Training and Employment in January 2000. The Pathways Review arose from theGovernment’s specific policy commitment to increase retention rates, broadenpathways, improve employment outcomes, increase participation rates in lifelonglearning and enhance seamlessness in the post-compulsory years across the schooleducation and vocational education and training sectors.

The Pathways Review found a number of shortcomings in the current provision of post-compulsory education and training for young people in Victoria and made anextensive series of recommendations to tackle these shortcomings. The Governmentbroadly accepted the recommendations of the Pathways Review.

Specifically, in relation to post-compulsory education and training, the Governmentacted on the recommendation that a Victorian Qualifications Authority be established to incorporate the accreditation, certification and quality assurance functions of theVictorian Board of Studies, the State Training Board and the Adult, Community andFurther Education Board. The Authority would have the responsibility to maintain thequality and public integrity of qualifications and their associated assessmentarrangements, and the recognition of education and training outcomes.

The VQA was therefore established in March 2001 as part of the new and integratedstructural arrangements introduced to support the reform agenda.

3

At a glance

4

Establishment The VQA: • was established as a body corporate under the Victorian

Qualifications Authority Act 2000 (the Act) on 1 March 2001

• is the peak accreditation, certification, and registrationbody for qualifications that involve or have a comparable orhigher status to courses normally undertaken in Years 11and 12, the Victorian Certificate of Education (VCE),vocational education and training and further education(except higher education)

• is responsible to the Minister for Education and Training.

The VQA’s key purposes are to ensure that the course andqualifications needs of the Victorian community are met andthat qualifications are of the highest standard.

The work being undertaken by the VQA supports thefollowing Government goals for the State’s post-compulsoryeducation and training system:

• increase in the percentage of young people whosuccessfully complete Year 12 or its equivalent

• increase the participation and achievement in educationand training in rural and regional Victoria and amonggroups where it is presently low

• make near-universal participation in post-school educationand training the norm in our society – not just for the youngbut for all the community.

All the projects being undertaken by the VQA (pages 15–18)are aimed at helping to achieve the following Governmenttargets:

• by 2005, the percentage of young people aged 15 to 19 inrural and regional Victoria who are engaged in educationand training will increase by 6 per cent

• by 2010, 90 per cent of young people in Victoria willsuccessfully complete Year 12 or its equivalent.

Governance The Victorian Qualifications Authority Act 2000 (the Act) waspassed by the Victorian Parliament in November 2000. TheAct established the VQA and reconstituted the State TrainingBoard of Victoria as the Victorian Learning and EmploymentSkills Commission.

The broad objectives of the Authority, set out in section 5 ofthe Act, are to:

• develop and monitor standards for education and trainingnormally undertaken in, or designed to be undertaken in,the years after Year 10

• ensure and support appropriate linkages betweenqualifications

• facilitate procedures which make it easier for people to re-enter education and training and acquire qualifications.

FunctionsThe functions of the Authority, set out in section 6 of the Act,are to:

• develop policies, criteria and standards for theaccreditation of courses, the recognition of qualifications,the quality assurance for qualifications issued inaccordance with this Act and the registration of courses,qualifications and education and training organisations

• accredit courses and register accredited courses

• recognise qualifications (including qualifications developedoutside Victoria and Australia) and provide for theregistration of recognised qualifications

• approve providers of accredited courses and persons whocan issue recognised qualifications and to register thoseproviders and persons

• issue recognised qualifications and qualifications foraccredited courses

• enter into arrangements with other agencies to developand modify courses

• promote and develop linkages between accreditedcourses and recognised qualifications and supportarticulation between those courses and courses in othersectors of education

• monitor patterns of participation by students in accreditedcourses or other education or training that lead to the issue of recognised qualification and the outcomes ofthose courses, recognised qualifications and educationand training

• develop and monitor standards for education and trainingafter Year 10

• ensure and support appropriate linkages betweenqualifications

• facilitate procedures to make it easier for people to re-entereducation and training and to acquire qualificationsthroughout their lives.

Key relationships The VQA Act requires that the VQA must consider advice from:

• the Victorian Curriculum and Assessment Authority

• the Adult, Community and Further Education Board

• the Victorian Learning and Employment Skills Commission.

The VQA BoardMinisterial appointments to the VQA Board reflect the diversityof the post-compulsory education and training community. Innominating persons, the Minister ensured that the compositionof the Authority was a fair and balanced reflection of thediversity of the community and the VQA’s stakeholders, as wellas representing both metropolitan and country interests.

The first meeting of the VQA Board took place on 1 March2001. Subsequently meetings have been held bi-monthly.

5

Victorian Qualifications AuthorityANNUAL REPORT 2001–02

MembershipProfessor Helen Praetz, BA, DipEd, MEd, PhD is the Chair of the VQA. The Secretary to the Department of Education & Training and the Chairs of the Victorian Curriculum and Assessment Authority, the Victorian Learning andEmployment Skills Commission, and the Adult, Communityand Further Education Board are ex officio members. Theremaining members, including the Chair, were appointed bythe Governor-in-Council on the nomination of the Minister.

Professor Helen PraetzChair

Professor Helen Praetz is Pro Vice-Chancellor, Access and Equityand Director of TAFE at RMIT andhas more than 20 years experiencein education. She was a seniormanager in the Department ofEducation and Dean, Faculty ofEducation and Training and ProVice-Chancellor (Higher Education)at RMIT. A professor of education,she has served on numerousboards and reviews dealing withpost-compulsory education andtraining. In her role as Chair of theVQA, she is a member of theVictorian Learning and EmploymentSkills Commission and the VictorianCurriculum and AssessmentAuthority.

Mr Paul BriggsMember

Mr Paul Briggs is the PrincipalConsultant at Pilican Consultancy. Mr Briggs brings a wealth ofexperience across various sectors inAboriginal community development.He is an adviser to the VictorianAboriginal Community ControlledHealth Organisation (VACCHO), amember of the Northern VictorianAboriginal Partnerships Committeeand a founding member of the KooriEconomic Employment and TrainingAgency Committee. Mr Briggs is theVACCHO representative to theVictorian University Rural HealthConsortium. He is founding Chairmanof First Nations Advantage CreditUnion, the first Indigenous credit unionoffering national access to financialservices. He is also founding presidentof the Rumbalara Football/NetballClub in northern Victoria.

Mr Alan CliffordMember

Mr Alan Clifford has beenCastlemaine Secondary CollegePrincipal since 1994. Mr Cliffordbegan teaching in 1972 and wasCastlemaine Technical CollegePrincipal from 1991 to 1994. He was a Department of Education,Employment and Training SeniorEducation Officer in MaryboroughDistrict, Loddon Campaspe MalleeRegion, and Western MetropolitanRegion between 1983 and 1988. He served as an Acting Inspector,Technical Schools Division,Education Department of Victoriafrom 1981 to 1983.

Mr Peter AnnettMember

Mr Peter Annett is Deputy Directorof Catholic Education, Archdioceseof Melbourne. He is a CatholicEducation Commission of VictoriaExecutive Member and a NationalCatholic Education CommissionExecutive Member. He is a memberof the Ministerial Council onEducation, Employment, Trainingand Youth Affairs Taskforce onTeacher Recruitment, Preparationand Training. He has nearly 40 years experience in education as a teacher and administrator.

At a glance

6

Professor Kwong Lee DowAMEx officio member

Professor Kwong Lee Dow AM isChair of the Victorian Curriculumand Assessment Authority. He wasappointed Deputy Vice-Chancellor,Students and Staff, at the Universityof Melbourne in 1998. He is theHonorary Secretary of the RhodesScholarship Selection Committee for Victoria and a member of theHong Kong Council for AcademicAccreditation. He has been onreview boards for the VictorianCertificate of Education and highereducation and was appointed aMember of the Order of Australia in 1984.

Ms Pam JonasMember

Ms Pam Jonas is the Employment,Education and Training Manager and Principal Policy Adviser at theVictorian Employers’ Chamber ofCommerce and Industry. Since 1995,Ms Jonas has been involved at asenior policy level in many facets of further education and training for adults and young people. She is a Ministerial Appointment to theChisholm Institute Council and hasbeen an Education FoundationTrustee and Executive Boardmember since 1994.

Mr Peter KirbyEx officio member

Mr Peter Kirby is Chair of the Adult,Community and Further EducationBoard. He is also the Chair of theNational Centre for VocationalEducation Research. He is a formerSecretary of the Victorian Departmentof Education and the Department ofPremier and Cabinet and a formerDirector-General of the SouthAustralian Department of Employmentand TAFE. Mr Kirby has chaired anumber of reviews in the fields ofeducation, training and employment,including the Ministerial Review ofPost Compulsory Education andTraining Pathways in Victoria.

Mr Stuart Hamilton AOEx officio member

Mr Stuart Hamilton is Secretary of the Department of Education &Training. He was Executive Directorof the Australian Vice-ChancellorsCommittee from 1996 to 2001. He has served as Secretary to the Commonwealth Department ofEnvironment, Sport and Territoriesand to the CommonwealthDepartment of Health, Housing and Community Services. A Rhodes Scholar, he joined theAustralian Public Service in 1975.His board appointments haveincluded the InternationalAssociation of Universities, theAustralian Qualifications FrameworkAdvisory Board, the AustralianHeritage Commission, the AustralianSports Commission, the HealthInsurance Commission and theAustralian Institute of Health and Welfare.

Mr Peter LaverEx officio member

Mr Peter Laver is Chair of theVictorian Learning and EmploymentSkills Commission. He worked forBHP Limited and its subsidiariesfrom 1959, until retiring in 1998. He was BHP Minerals Environment,Safety and External Affairs GroupGeneral Manager and Senior VicePresident from 1995 to 1998 andhas held other general managementpositions. He serves on industry,employment and community boards,and is a Director of WorkPlacement,Chair of the Community AdvisoryCouncil and Chair of the EnergySector of the CSIRO StrategicAdvisory Committee.

7


Professor Stuart MacintyreMember

Professor Stuart Macintyre is Deanof the Faculty of Arts and the ErnestScott Professor of History at theUniversity of Melbourne. He hasbeen a research fellow at St John’sCollege, Cambridge, and at theAustralian National University. He isa Centenary of Federation VictoriaCommittee member and Chair of the National Library of AustraliaCollecting Advisory Committee. He was Chair of the Prime Minister’sCivics Expert Group (1994–96) andthe Commonwealth Department of Education, Training and YouthAffairs Inquiry into School History(1999–2000).

Ms Elizabeth WardMember

Ms Elizabeth Ward has been Principalat Presbyterian Ladies’ College since1998. She was a member of theMinisterial Advisory Committee for the Victorian Institute of Teaching.She has been Chair of the NSWBoard of Studies HSC HistoryExamination Committee, andsupervisor of the HSC marking inHistory. In 1999, she was awarded afellowship from the Australian Collegeof Education. She was deputyheadmistress at Abbotsleigh andhead of history at RavenswoodSchool in Sydney.

Ms Julie MossMember

Ms Julie Moss is the ManagingDirector of the Photography StudiesCollege. Ms Moss has been involvedin vocational education and trainingfor 20 years and has served onnumerous post-compulsoryeducation and training referencegroups. She is the Australian Councilfor Private Education and TrainingVictorian Executive Board Chair andthe Deputy Chair of the NationalBoard. Ms Moss also serves as aVictorian Training Awards judge.

Ms Virginia SimmonsMember

Ms Virginia Simmons has been aTAFE Director in both the TAFEinstitute and dual-sector universitysetting since 1986. She is currentlyCEO of Chisholm Institute of TAFE. Her career in educationspans 20 years, mostly in the TAFEsector. Since 1993, Ms Simmonshas consulted widely internationally,particularly in the Asia-Pacificregion. She serves on a number ofeconomic and education boards. In 1995, Ms Simmons received theinaugural Prime Minister’s TrainingAward for her contribution to womenin vocational education and training.

Ms Joanne Tate PSMMember

Ms Joanne Tate is a Leading Teacher specialising in InformationTechnology at Ararat CommunityCollege. Ms Tate’s expertise ininformation technology led to herappointment as an Internet trainer.She was recognised with a PublicService Medal in the 1998 Queen’sBirthday Honours List and the 1999Victorian Technology Teacher of theYear Award. She is an online mentorfor the Department of Education &Training’s Global Classroom project.Ms Tate is a member of the I*EARNAustralia management team.

Mr Peter Thomas (to December 2001)

Mr Peter Thomas is Chair of theVictorian Manufacturing IndustryConsultative Council. Mr Thomasretired in July 2000, after 41 yearswith General Motors Holden. Hissenior appointments includedManaging Director of Holden’s EngineCompany and Executive Director of Planning and External Affairs atHolden. He is an RMIT UniversityCouncillor, Australian Industry GroupEmeritus National Councillor andChair of the Advanced EngineeringCentre for Manufacturing. He is aformer Director of the VictorianEducation Foundation.

At a glance

8

Audit CommitteeMembers Professor Helen Praetz (Chair)

Mr Peter AnnettMs Julie MossMs Pam Jonas

Accountable Officer Dr Dennis Gunning

Structure and operation The VQA staff operate within the financial, asset, humanresource and information technology policy frameworks of the Department of Education & Training.

The VQA staff provide advice and reports to the Authority on:

• appropriate guidelines and standards relating to theaccreditation of courses and registration of providers

• development and implementation of certification andregistration procedures and processes

• management of the Authority’s resources

• quality assurance services relating to the effectiveness and efficiency of the Authority’s policies and standards

• the quality of implementation of the Authority’s policies and guidelines by various institutions and agencies

• strategic planning and policy development and directions.

Director The Director is responsible to the Chair of the VQA for theeffective and efficient implementation of the Authority’sdecisions and to the Secretary of the Department ofEducation & Training for the running of the organisation and its effective interaction with the Department.

Ms Patricia Neden was Acting Director from March 2001 toSeptember 2001.

Dr Dennis Gunning took over the position of Director from 1 September 2001. Dr Gunning was previously Director ofDevelopment for the Scottish Qualifications Authority, wherehe was responsible for the design and development ofsecondary school and vocational qualifications and theirassessment, and for the Authority’s international work.

Staff Executive officer staff are Dennis Gunning (Director) andArden Joseph (VCAL Project Executive), supported byMelinda Nulty (Executive Assistant).

VQA has four main areas of activity, each supported by ateam of staff:

• Qualifications, Research and Development: Tony Ayers,Mandy Patmore and Madeleine Jenkins

• Operational and Regulatory: Judith Firkin, Ann Alexander(to 7 June 2002), Kay Rodriquez, Judy Walker, Helga Molnar

• Governance and Communication: Janet Sutherland,Maryse Felicite

• VCAL: Cathy Donovan, Liz Knight.

As at 30 June 2002 the VQA had 15 staff members – 12 full-time and 3 part-time. Of this total 79 per cent werefemale and 21 per cent male.

The VQA team

(from left) front row: Cathy Donovan, Mandy Patmore2nd row: Melinda Nulty, Helga Molnar, Arden Joseph

3rd row: Kay Rodriquez, Judith Firkin, Liz Knight4th row: Maryse Felicite, Judy Walker, Janet Sutherland

back row: Tony Ayers, Dennis Gunning, Madeleine Jenkins

9


Organisation chart as at 30 June 2002

Secretary, Department of Education & Training

Director

Victorian Qualifications Authority Board

Operational and RegulatoryQualifications Research

and DevelopmentGovernance andCommunication

VCAL

MINISTER FOR EDUCATION AND TRAINING

10

The financial report covers a 16-month period from theinception of the VQA in March 2001 to the end of the2001–02 financial year.

The primary sources of the VQA’s funding are the Departmentof Education & Training and fees received for qualityassurance activities. The financial report also includes assetsand liabilities arising from the transfer of the Private ProviderTrust managed by the Victorian Learning and EmploymentSkills Commission to the VQA.

The VQA ended the year in a satisfactory financial position,with revenue exceeding expenditure by $869,414.

The financial report shows the VQA to have had a total of 29 staff over the 16-month period. A number of these staffwere short term to assist with the setting up of the newAuthority. Since the middle of 2001, the operational staffinglevel of the VQA has been approximately 14 full-timepositions. Steps are now being taken to recruit additionalmembers of staff to increase the total to the level envisagedat the time the VQA was established (22.5 full-time positions).

The revenue from fees charged under section 21 of theVictorian Qualifications Authority Act 2000 totalled $954,670.These fees relate to quality assurance activity carried outunder nationally agreed arrangements. The level of the feescharged is defined in Regulations and was the subject of areview in late 2001, the result of which was to leave the levelof fees unchanged. A further review of fees will take place in 2002–03, the result of which will take effect from thebeginning of 2004. The fees are used to cover the cost ofcarrying out quality assurance activity and other associatedactivity such as support for training providers throughseminars and production of materials.

Revenue

State Government grants $1,920,000

Transfer $619,709

Fees under section 21 $954,670

Other $3,500

Total revenue $3,497,879

Expenditure

Salaries and other staff costs $1,951,106

Supplies and services $620,478

Depreciation and amortisation $39,680

Other $17,201

Total expenditure $2,628,465

Operating result $869,414

Summary of financial results

At a glance

ExpenditureRevenue0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

$ million

Comparison of revenue and expenditure,March 2001 – June 2002

11

2001–02Operational responsibilities

The VQA is the peak accreditation, certification and registration body forpost-compulsory education and training (except higher education).

Governance, processes andproceduresThe VQA’s operational responsibilities include:

• the provision of support to the Board and any committeesit might establish and the running of internal processesand procedures that comply with the VQA Act and other appropriate legislation and in accordance with the policy framework of the Department of Education & Training

• effective communication of its policies, qualificationsand initiatives

• statutory responsibility for the accreditation andregistration of new post-compulsory qualifications(except higher education qualifications), the approvaland registration of providers and the issuing ofcertificates. For each of these duties, the VQA can chooseto exercise its responsibilities directly or to delegate thefunction to others to carry out on its behalf. In 2001–02,the VQA decided to carry out the accreditation functionitself but to delegate the responsibility for approval ofnew providers and the issuing of certificates.

VQA staff provide executive support to the VQA and itsAudit Committee. Improvements in agenda planning andguidelines for presentation of papers enabled members toconcentrate on key policy issues. Feedback from memberson the agenda and papers has been positive.

Work towards the end of 2001–02 was undertaken toclarify governance matters with a view to the production of a handbook for members.

An extended meeting of the Authority was held inDecember 2001 to begin the process of drawing up astrategic plan for 2002–05 and a business plan for 2002–03.This meeting was professionally facilitated and supportedby a number of strategy papers on key issues. The outputwas a draft strategic plan for 2002–05, which was refinedover successive meetings of the Authority and dulyapproved by the Minister for Education and Training.

Because of its role as a state accreditation and registrationauthority, the VQA must operate in accordance with theAustralian Quality Training Framework (AQTF) standards,which have been agreed by all States and Territories. Givenits regulatory role, however, it was felt appropriate that allthe VQA’s business processes and procedures, not just thosecovered by the AQTF, should be developed in accordancewith best-practice benchmarking.

Towards the end of 2001–02, a project was established totake this forward, using the advice and support of thequality manager of an organisation recognised as a leaderin the use of the Australian business excellence standardsand the AQTF. This project will continue into 2002–03.

12

Course accreditations Course reaccreditations0

10

20

30

40

50

60

70

80

90

Further educationVET

Number ofaccreditations

Course accreditations and reaccreditations June 2001 – June 2002

CommunicationThe VQA had to develop ways in which to communicateits policies and activities to stakeholders and users of itsqualifications. It has done this on two fronts.

Initial steps were taken to establish the VQA’s own publications. A corporate ‘look’ for all VQAcommunications was developed with the help of theDepartment of Education & Training’s CommunicationsUnit and was applied to all publications, including VQA and VCAL leaflets and conference banners, and will in future be applied to the VQA website. A regularnewsletter, VQA Update, was launched, the first issuefocusing on the VCAL.

Second, steps have been taken to ensure that the VQAregularly contributes articles and papers to publicationsand conferences. Articles have appeared in theDepartment of Education & Training Education Times andSuccess publications and contributions have also beenmade to a wider readership through VOCAL, the regularnewsletter of the Scottish Further Education Unit Broadcast,and the Times Educational Supplement. VQA staff havetaken every opportunity to accept invitations to speak atconferences and seminars; VCAL has been a particular, but not exclusive, focus of those invitations. The VQA also played a significant role in the development andpublication of the new options booklet for Year 10students, called Where to Now?

AccreditationAccreditation in the VQA during 2001–02 was guided bythe Principles of Revised VCE and VCE (VET) studies for theVCE published in the Board of Studies Bulletin, June 1998.The National Accreditation Principles were used for theaccreditation of vocational education and training coursesand these principles, supplemented by the four FurtherEducation Framework Principles, were used in accreditingfurther education courses.

The AQTF Standards were endorsed in June 2001 and the VQA has contributed to the drafting of the NationalGuidelines for the Development of Vocational Educationand Training Courses for Accreditation, which are shortlyto be published by the Australian National TrainingAuthority. A review of VQA procedures was undertaken to ensure AQTF compliance.

In September 2001, the VQA Board endorsed the draftAccreditation Principles and Guidelines prepared bySwinburne University for the purposes of implementing a pilot project. These principles were cross-sectoral inapproach and were useful in the development of a workingchecklist in the accreditation of the VCAL. The checklistwas endorsed by the VCAL Development Committee andwas used by the assessment panel to evaluate thequalification proposal.

Others 6%

TAFE institute 19%

Private provider 34%

Public domain 41%

6%

41%

34%

19%

Course accreditations and reaccreditations by provider type, June 2001 – June 2002

The draft Accreditation Principles and Guidelines wereused as the basis for discussion by a VQA and VictorianCurriculum and Assessment Authority working group.These guidelines, together with the respective legislation of the two Authorities, led to the formulation of anaccreditation procedure that recognised the responsibilitiesof both Authorities. Approval of these procedures willprovide the foundation for the review of curriculum andassessment principles that will inform the accreditation of the VCAL and VCE in future.

The VQA role in recognition of qualifications largelyrelates to national training packages. In partnership withthe Office of Training and Tertiary Education, new andreviewed training packages are evaluated in preparationfor endorsement by the Minister.

Operational responsibilities

13


STAR databaseThe VQA Act states that:

• the VQA must maintain a State Register of AccreditedCourses and Recognised Qualifications

• the VQA must establish and maintain a register ofpersons or bodies who:

– are authorised by the Authority under section 23 to provide accredited courses

– are authorised by the Authority under section 23 to award or issue recognised qualifications

• the Register must specify:

– the name of the registered person or body

– any limitations or restrictions on the registration.

The System for Training and Recognition (STAR) databaseis the instrument by which the VQA complies with thisrequirement. The State Register of Accredited Courses andRecognised Qualifications is a published report that isderived from the information within STAR.

DelegationsAccording to Section 16 of the VQA Act:

(1) The Authority may, by instrument under its commonseal, delegate any function or power of the Authority,other than this power of delegation to any of thefollowing:

(a) a member of the Authority

(b) a member or the members of a committeeestablished under section 15

(c) the Director (of the VQA) or any person employedunder section 14

(d) the Secretary or any other person employed in theDepartment

(e) the Victorian Learning and Employment SkillsCommission

(f) the Adult, Community and Further Education Board

(g) the Victorian Curriculum and AssessmentAuthority.

(2) The Authority may, by instrument under its commonseal, delegate any power of the Authority to award orissue qualifications to any of the persons or bodiesreferred to in sub-section (1) or a registered educationand training organisation.

Registration of providers

The registration and audit of providers of vocationaleducation and training and further education is under-taken by the Quality Assurance and Review Division of theOffice of Training and Tertiary Education, according to therequirements of the AQTF.

Number of providers, 30 June 2002

Category No.

Commercial training organisation 394

Community access centre 171

Enterprise-based organisation 112

Industry organisation 238

Private school 65

Government school 70

Adult education centre 114

Professional association 4

Adult Migrant Education 1

TAFE 20

Total 1189

Number of providers registered between 1 July 2001 and 30 June 2002

Category No.

Commercial training organisation 64

Community access centre 10

Enterprise-based organisation 4

Industry organisation 15

Private school 8

Government school 6

Adult education centre 1

Professional association 2

Total 110

Issuing qualifications

The VQA has delegated the function of issuing the VCE to the Victorian Curriculum and Assessment Authority. The table on page 14 shows the graduation statistics of the 2001 VCE assessment program.

For both girls (98 per cent) and boys (95 per cent), there isa very high graduation rate of those eligible to complete.Eligible students are those who in 2001 had sufficientprevious results and current enrolments to meet theminimum requirements of the VCE.

The high graduation rate suggests that the large majorityof students who do not complete the VCE make thedecision to discontinue their studies before enrolling in a Year 12 program.

Students eligible for satisfactory completion, 2001

No. eligible No. graduating % graduating

VCE only students 46,924 45,027 96.0

Adult students 932 597 64.1

Past results students 57 26 45.6

Block credit students 697 658 94.4

Total 48,610 46,308 95.3

The four student categories are defined as follows.

• VCE only are students who have undertaken the requirednumber of VCE units in Years 11 and 12 as continuingstudents.

• Adults are students who are at least 18 years of age andwho are returning to study after one or more years awayfrom full-time education.

• Past results students are students who have relevantresults from studies prior to the introduction of the VCE.

• Block credit students are students who have Year 11and/or Year 12 results from interstate or overseas forwhich credit is granted towards the VCE.

Operational responsibilities

14

15

2001–02Qualifications policy,research and development

Making qualifications work for Victorians.

Qualifications research anddevelopment As part of its responsibility to promote new thinking aboutqualifications and pathways, the VQA has been involvedin various forums and initiatives, at state and nationallevels. This work has involved policy, program andqualification development, both to deal with immediateissues such as post-compulsory retention rates and tocontribute to Victoria’s position on areas of national policy debate such as approaches to employability skills,pre-vocational programs and the value and limitations of training packages. In conjunction with the Departmentof Education & Training, the VQA has worked to developand promote an approach to these issues in support of theinterests of Victorian students and stakeholders.

The most immediate challenge facing the VQA, in its earlymonths, was to develop a policy response to the problem ofpoor success rates for young people in the post-compulsoryyears. The evidence showed that while the VCE met theneeds of many young people, particularly those planninga pathway into higher education, there was a significantproportion of young people whose needs did not seem to be best met by the VCE. Early discussion by the VQAidentified the possibility of developing a new qualificationto complement the VCE – a qualification with a focus onapplied learning and with the aim of opening uppathways to employment and to further vocationaleducation and training.

The consequent development program took up themajority of the VQA’s time and resources in 2001–02. It involved the design, launch and trialing of the newVCAL. This is covered in more detail later in this section.

Other policy and research activities in 2001–02 included:

• contributions to national forums such as the NationalTraining Quality Council and national issues such as the review of Commonwealth apprenticeship employerincentives, the boys’ education review and theAustralian National Training Authority initiative, DueCredit. Support has also been provided to Tasmania inthe discussions on the setting up of a TasmanianQualifications Authority

• work with various sectors of the Department ofEducation & Training and fellow statutory authorities in the revitalisation of post-compulsory education andtraining. Examples include work with the VictorianCurriculum and Assessment Authority on credit transferbetween vocational education and training qualificationsand the VCE; discussions in the Department of Education& Training on future research and monitoring activities;planning work with the Office of Training and TertiaryEducation to support a government initiative to makeVictoria a centre of design excellence; and reviews oftraining for volunteer fire fighters (in response to thefindings of the Linton Inquiry).

16

Research is viewed as being essential for good policy andprogram development. To this end, a research program is currently being developed as part of the VQA strategicplan, and which will take account of the Department of Education & Training research priorities.

Victorian Certificate of AppliedLearningOne of the key findings of the Ministerial Review of Post Compulsory Education and Training Pathways inVictoria was that significant numbers of post-compulsorystudents felt constrained by the current education systembecause their individual learning, personal development and transition needs were not fully met by traditionalapproaches. As a result, more than 20 per cent of studentsdid not finish Year 12, and many left school without theskills and qualifications needed for further education,training and work.

In the spring of 2001, the VQA proposed that a new post-compulsory qualification be developed to sit alongsidethe VCE and offer a vocational pathway for students whobenefit from a curriculum based on applied learning. Aframework for the new qualification was devised, drawingheavily on successful programs being run in secondarycolleges and TAFE institutes. The Government accepted theproposal and announced that the VQA would manage atrial in 2002 of the new qualification, to be called theVictorian Certificate of Applied Learning (VCAL).

Qualification design

The new qualification was designed to improve thepathways for young people from school to work, furthereducation and/or training. It can be certificated at threelevels – Foundation, Intermediate and Senior – to allowstudents to enter and exit from the qualification at levelsappropriate to their learning needs. The VCAL designfeatured four compulsory curriculum strands withaccredited units and modules in:

• literacy and numeracy

• industry-specific skills

• work-related skills

• personal development skills.

Provision was made for students who successfully completedthe VCAL to receive a certificate together with a Statementof Results listing all units successfully completed. The unitsand modules that make up a VCAL program are drawnfrom accredited provision to ensure quality programs and to support credit transfer from the VCAL to otherqualifications such as the VCE or vocational education and training certificates.

Minister Kosky officiallylaunching the VCAL trial atNorthland Secondary College

Launch of VCAL Goldfields trial at Castlemaine Secondary College

(from left) Cathy Donovan, Senior Policy Officer VQA; Allan Clifford, Principal CastlemaineSecondary College; Bob Cameron, Minister for Local Government; John Caulfield, PrincipalMaryborough Regional College; Ian Kemp, Assistant Principal Maryborough Regional College;Leeanne Thornton, Assistant Principal Castlemaine Secondary College

Qualifications policy, research and development

17


VCAL trial project 2002

The trial of the new qualification began in January 2002 with almost 450 students enrolled in the followingschools and TAFE institutes in nine Local Learning andEmployment Networks across the State:

Government schools

Box Hill Senior Secondary College

Castlemaine Secondary College

Collingwood College (The Island)

Corio Bay Senior College

Doveton Secondary College

Eumemmerring Secondary College

Kurnai College

Langwarrin Secondary College

Lowanna College

Maryborough Regional College

Northland Secondary College

Sebastopol Secondary College

Shepparton High School

Traralgon Secondary College

Westernport Secondary College

Catholic schools

Damascus College

Lavalla Catholic College

Notre Dame College

Padua College

Samaritan College

TAFE institutes

Box Hill Institute of TAFE

Northern Metropolitan Institute of TAFE

Each VCAL trial school and TAFE institute was providedwith funding for the coordination of a VCAL local programand the development of local VCAL networks. Each of thelocal networks received $10,000 in resource funding.

Individual learning programs were developed for studentsat each of the above schools and TAFE institutes toimprove their skills and expand their pathway options.The learning programs comprised units and modulesprimarily from VCE, vocational education and trainingand further education programs.

Strong local partnerships were also established at each of these locations to deliver accredited training and tosupport participating students. The partnerships involvedschools, TAFE institutes, adult community educationorganisations and other training providers, employers,community organisations and Local Learning andEmployment Networks.

A moderation process was initiated with the VCAL trialschools to ensure consistency of approach in regard todocumentation and assessment of student performance in 2002. The outcomes of this process will be used toinform the development of a statewide moderation system for 2003.

A VCAL senior management team was also established to manage the trial. The team included representationfrom the divisions of the Department of Education &Training, the VQA and the Victorian Curriculum andAssessment Authority.

Box HillBox Hill TAFE

NorthlandThe IslandSamaritanNMIT

SheppartonNotre Dame

Castlemaine

Maryborough

SebastopolDamascus

Corio

TraralgonLowannaKurnaiLavalla

DovetonEumemmerring

LangwarrinWesternportPadua

VCAL trial sites, 2002

Qualifications policy, research and development

18

Evaluation and accreditation

Two projects were set up using external contractors as part of the VCAL trial. Holmesglen Institute of TAFE wascontracted to develop a comprehensive proposal to accreditthe VCAL, and the Research Institute for ProfessionalVocational Education and Training, a consortium ofDeakin University and the Gordon Institute of TAFE, wascontracted to evaluate the VCAL trial.

The VCAL Development Committee was established inFebruary 2002 to guide the accreditation and evaluationprojects. The Committee comprised representatives of key stakeholder organisations, VCAL trial schools andTAFE institutes.

The accreditation proposal will be completed in July 2002 to enable the VQA to formally accredit the newqualification. The initial report of the evaluation projectwill be delivered in July 2002 and be used to finalise thestructure of the qualification for statewide rollout in 2003. The final evaluation report will be delivered inDecember 2002.

Communications and promotion

A VCAL communications strategy was developed to guidepromotional activity associated with the trial project.Minister Kosky launched the VCAL trial in February andeight regional launches were subsequently conducted ineach of the trial locations.

A promotional brochure and question-and-answer sheetwere developed and distributed widely throughout schools,industry and key stakeholder organisations. Workshops forVCAL practitioners were held in October 2001 and March2002, and further professional development workshopswere planned for the second half of the year.

Numerous VCAL presentations and briefings weredelivered by VQA staff at regional vocational educationand training conferences; Local Learning and EmploymentNetworks forums; VET/VCE Coordinator and SchoolPrincipal meetings; Catholic Education Office seminars;Australian Education Union seminars; and industryassociation and peak body events.

Statewide implementation 2003

In May 2002, the 2002–03 State Budget committed $47.7 million over four years to roll out the VCAL, in the first phase in 2003, to 200 government schools and 19 TAFE institutes. The funding also included provision to develop and pilot further VCALs to meet identified student needs.

An expression-of-interest process commenced in June togauge interest from schools to deliver the VCAL in 2003. By the end of June, over 175 expressions of interest werereceived, indicating strong support for the certificate.

The details of the design of the VCAL to be implemented in 2003 will be informed by the interim report of theevaluation project and through discussion of the report by the VQA and the VCAL Development Committee.

19

Staffing guidelines Staffing guidelines were issued by the Department ofEducation & Training in March 2001. They are used bymanagers and staff to support effective human resourcepractices.

Policies set out in the guidelines provide for:

• establishment and maintenance of a workforce planthat provides sufficient flexibility to meet changing work demands

• alignment of the staffing profile to the work priorities ofthe work unit

• application of the principles of merit, fairness anddiversity in all human resource practices

• recruitment of the best possible available staff frominside or outside the organisation

• merit-based selection processes for all advertisedpositions

• staff development that enhances career potential andsupports continuous skill development of the workforce.

The VQA and its managers are committed to theseprinciples.

Freedom of InformationThis section is published to conform with the requirementsof section 7 of the Freedom of Information Act 1982(FOI Act).

For the period of this report, 1 March 2001 – 30 June 2002,there were no applications received under the FOI Act.

Queries about the availability of and charges for othermaterial prepared under part II of the FOI Act should bedirected to the authorised officer. The authorised officer forthe Department of Education & Training is:

Neil MorrowManager, Freedom of InformationDepartment of Education & TrainingPO Box 4367Melbourne Victoria 3001Telephone (03) 9637 2000

The following are the general categories of documentsmaintained by the VQA:

• correspondence, administrative and policy documents

• paper records on registered files

• minutes, agendas and papers.

2001–02Wider policy frameworks

The VQA works within the wider policy frameworks of the Department of Education & Training.

Accounting records

Accounting records are maintained on a computerisedaccounting system. The records deal with general ledgerentries, accounts payable, payroll and other accountingfunctions. Paper records are also kept as registered files.

Whistleblowers Protection Act2001The Department of Education & Training has appointed a Protected Disclosure Coordinator and establishedprocedures in accordance with Part 6 of the Act. Guidelines have been developed that are applicable to all Department staff.

The Act commenced operation on 1 January 2002. To datethe Department has not received any disclosures madeunder the Act nor has the Ombudsman referred anydisclosures made under the Act to the Department forinvestigation.

Building Act 1993 As part of its service provision mandate, the Department of Education & Training is committed to providing safeand secure buildings for all Department-owned andoperated facilities. A critical part of this commitment is the development of a Building Compliance Assessmentstrategy for all facilities for which the Department has a responsibility.

The building occupied by the VQA at 41a St Andrews Placeis a government-owned building. This building wascompletely refurbished in 2000 to provide accommodationfor the Victorian Curriculum and Assessment Authorityand is still under a contract warranty.

The VQA is committed to providing a safe and securebuilding for staff and visitors, and full compliance with theprovisions of the Building Act 1993 has been maintained.

Occupational health and safetyThe VQA operates within the infrastructure of theDepartment of Education & Training and is committed toabiding by the Department’s policies and procedures inrelation to occupational health and safety. For details referto the Department of Education & Training annual report.

National Competition policyThe legislative review of fees and charges conducted in2000–01 indicated that the VQA did not add any greaterrestrictions on competition between providers of accredited courses.

Fees and charges Regulations were made under section 34 of the VictorianQualifications Authority Act 2000. The objective of theseRegulations is to prescribe interim fees to be charged by the VQA for services provided by the Authority under theVictorian Qualifications Authority Act 2000. Further details of fees and charges are available on the VQA website at<www.vqa.vic.gov.au>.

Major consultancies andcontractsThe following represent the major consultancies andcontracts (over $50,000) that have been let by the VQA for the period March 2001 – June 2002.

VCAL Accreditation Holmesglen TAFE Contract $71,016

VCAL Evaluation Research Institute for Consultancy $95,000Professional Educationand Training

Additional information availableon requestConsistent with the requirements of the FinancialManagement Act 1994, material has been prepared on the following topics not addressed in this report:

• publications produced by the Authority or the Office ofthe VQA

• shares held beneficially by senior officers as nominees of a statutory authority or subsidiary

• declarations of pecuniary interests

• changes in prices, fees, charges, rates and levies

• major external reviews

• overseas visits undertaken

• occupational health and safety assessments andmeasures

• industrial relations issues

• workforce data and equity matters.

Enquiries regarding details of this information should bemade to:

Janet Sutherland Victorian Qualifications Authority41a St Andrews Place East Melbourne Victoria 3002

20

Wider policy frameworks

Financial report

Statement of financial performance 22

Statement of financial position 22

Statement of cash flows 23

Notes to the financial statements 24

Accountable Officer’s declaration 35

Auditor-General’s report 36

21

Financial report

Statement of financial performance for the 16-month period ended 30 June 2002

Note 2002$

Revenue from ordinary activitiesRevenues from ordinary activities 3 3,497,879

Expenses from ordinary activities Employee entitlement 4 1,951,106Other expenses 17,020Grants and transfer payment 181Depreciation and amortisation 4 39,680Supplies and services 620,478

2,628,465

Net result for the reporting period 10 869,414

The above statement of financial performance should be read in conjunction with the accompanying notes.

Statement of financial position as at 30 June 2002

Note 2002$

Current assets Cash at bank 5, 12 1,361,115Receivables 6, 12 12,381

Total current assets 1,373,496

Non-current assets Plant and equipment 7 70,335

Total non-current assets 70,335

Total assets 1,443,831

Current liabilities Payables 8, 12 144,987Provisions 9, 11 146,199

Total current liabilities 291,186

Non-current liabilities Provisions 9, 11 284,454

Total non-current liabilities 284,454

Total liabilities 575,640

Net assets 868,191

Equity Accumulated surplus

Total equity 10 868,191

The above statement of financial position should be read in conjunction with the accompanying notes.

22

23


Statement of cash flows for the 16-month period ended 30 June 2002

Note 2002$

Cash flows from operating activities

Receipts from Government 1,920,000

Receipts from other entities 1,502,946

Payments to suppliers and employees (2,064,514)

GST recovered from ATO 51,369

Net cash inflow from operating activities 17 1,409,801

Cash flows from investing activities

Payments for equipment (48,686)

Net cash (outflow) from investing activities (48,686)

Net increase in cash held 1,361,115

Cash at the beginning of the financial period –

Cash at the end of the financial period 5 1,361,115

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

Financial report

24

Notes to the financial statements for the 16-month period ended 30 June 2002

Note1 Summary of significant accounting policies 252 Restructuring of administrative arrangements 273 Revenue 274 Result from ordinary activities 285 Cash assets 286 Receivables 287 Non-current assets 298 Payables 299 Provisions 30

10 Equity and movements in equity 3011 Employee entitlement 3012 Financial instruments 3213 Ministers and Accountable Officers 3314 Contingent liabilities 3415 Commitments for expenditure 3416 Event occurring after reporting date 3417 Reconciliation of results from ordinary activities to net cash

inflow from operating activities 34

25


This general-purpose financial report has been preparedin accordance with the Financial Management Act 1994,Australian Accounting Standards, Statements of AccountingConcepts and other authoritative pronouncements of theAustralian Accounting Standards Board, and Urgent IssuesGroup Consensus Views.

It is prepared in accordance with the historical-costconvention, except for certain assets and liabilities which,as noted, are at valuation. The accounting policiesadopted, and the classification and presentation of items,comply with an Australian Accounting Standard or UrgentIssues Group Consensus View, or accounting policypermitted by an Australian Accounting Standard isadopted to improve the relevance and reliability of thefinancial report.

(a) Reporting entity

The Victorian Qualifications Authority Act 2000 establishedthe Victorian Qualifications Authority (VQA) as anindependent state-owned public authority. As anindependent public authority the VQA is a separate legalidentity and accountable for resources under its control.Section 17 of the Act requires that a separate VQA Fund iscreated to account for all money received by the Authority.The Act was proclaimed to have effect from 1 March 2001.

This financial report is therefore for the period 1 March2001 to 30 June 2002 and there are no comparativebalances.

Administrative changes

On 1 July 2001, the Private Provider Trust Fund wastransferred from the Victorian Learning and EmploymentSkills Commission to the VQA.

(b) Objectives

The VQA’s objectives are to develop and monitor standardsfor education and training normally undertaken in, ordesigned to be undertaken in the years after Year 10; to ensure and support appropriate linkages betweenqualifications; to facilitate procedures which make iteasier for people to re-enter education and training andacquire qualifications throughout their lives.

(c) Acquisitions of assets

The cost method of accounting is used for all acquisitionsof assets. Cost is measured as the fair value of the assets given up or liabilities undertaken at the date ofacquisition plus incidental costs directly attributable to the acquisition.

Assets acquired at no cost, or for nominal consideration,are initially recognised at their fair value at the date of acquisition.

(d) Revenue recognition

Grants over which the VQA gains control during areporting period are recognised as revenues of thatreporting period consistent with Australian AccountingStandard AAS 15, ‘Revenue’. Control arises on the earlierevent of receipt or notification of eligibility for grants byrelevant authorities. Revenue also includes minoramounts for services provided.

(e) Receivables

All debtors are recognised at the amounts receivable asthey are due for settlement at no more than 30 days fromthe date of recognition.

Collectability of debtors is reviewed on an ongoing basis.Debts which are known to be uncollectable are written off.A provision for doubtful debts is raised when some doubtas to collection exists.

(f) Victorian Government policy – Revaluations ofnon-current physical assets

Subsequent to initial recognition as assets, non-currentphysical assets other than plant and equipment aremeasured at fair value. Plant and equipment aremeasured at cost. Revaluation is made with sufficientregularity to ensure that the carrying amount of eachasset does not differ materially from its fair value at thereporting date. Revaluations are assessed annually andsupplemented by independent assessments at least everythree years. Revaluations are conducted in accordancewith the Victorian Government policy, ‘Revaluation ofNon-Current Physical Assets’.

Revaluation increments are credited directly to the assetrevaluation reserve, except that, to the extent that anincrement reverses a revaluation decrement in respect ofthat class of asset previously recognised as an expense inthe statement of financial performance, the increment isrecognised immediately as revenue in the statement offinancial performance.

Revaluation decrements are recognised immediately as expenses in the statement of financial performance,except that, to the extent that a credit balance exists inthe asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluationreserve.

Revaluation increments and decrements are offset againstone another within a class of non-current assets.

(g) Depreciation of non-current assets

Depreciation is calculated on a straight-line basis to write off the net cost or revalued amount of each item ofnon-current assets over its expected useful life to the VQA.

Note 1 Summary of significant accounting policies

Financial report

26

Estimates of remaining useful lives are made on a regularbasis for all assets, with annual reassessments for majoritems. The expected useful lives are as follows:

2002

Computer equipment 3 years

Office equipment and furniture 5–10 years

Where items of equipment have separately identifiablecomponents which are subject to regular replacement,those components are assigned useful lives distinct fromthe item of equipment to which they relate.

Major spares purchased specifically for particularequipment are capitalised and depreciated on the samebasis as the equipment to which they relate.

(h) Trade and other creditors

These amounts represent liabilities for goods and servicesprovided to the VQA prior to the end of the financial yearand which are unpaid. The amounts are unsecured andare usually paid within 30 days of recognition.

(i) Goods and Services Tax

Revenues, expenses and assets are recognised net of Goodsand Services Tax (GST) except where the amount of GSTincurred is not recoverable, in which case it is recognisedas part of the cost of acquisition of an asset or part of an item of expense. The net amount of GST recoverablefrom, or payable to, the Australian Taxation Office (ATO) is included as part of receivables or payables in thestatement of financial position. The GST component of areceipt or payment is recognised on a gross basis in thestatement of cash flows in accordance with AccountingStandard AAS 28, ‘Statement of Cash Flows’.

(j) Employee entitlements

(i) Wages, salaries and annual leave

Liabilities for wages, salaries and annual leave arerecognised, and are measured as the amount unpaidat the reporting date at current pay rates in respect of employees’ services up to that date.

(ii) Long-service leave

A liability for long-service leave is recognised, and is measured as the present value of expected futurepayments to be made in respect of services providedby employees up to the reporting date. Considerationis given to expected future wage and salary levels,experience of employee departures and periods ofservice. Expected future payments are discountedusing interest rates on national government-guaranteed securities with terms to maturity thatmatch, as closely as possible, the estimated futurecash outflows.

(iii) Superannuation

The amount charged to the statement of financialperformance in respect of superannuation representsthe contributions made by the VQA to thesuperannuation fund.

(k) Cash

For purposes of the statement of cash flows, cash includesshort-term deposits that are readily convertible to cash onhand and are subject to an insignificant risk of changes in value. (See note 5).

(l) Resources provided and received free of chargeor for nominal consideration

Contributions of resources and resources provided free of charge or for nominal consideration are recognisedat their fair value. Contributions in the form of services

are only recognised when a fair value can be reliablydetermined and the services would have been purchased if not donated.

While payroll and accounts payable services are providedfrom centralised functions controlled by the Department of Education & Training, no estimate of the cost of theseservices is included in these accounts since these amountsare not readily quantifiable.

(m) Contributed capital

Consistent with Urgent Issues Group Abstract 38,‘Contributions by Owners Made to Wholly-owned PublicSector Entities’ appropriations for additions to net assetshave been designated as contributed capital. Othertransfers that are in the nature of contributions ordistributions have also been designated as contributedcapital.

For the reporting period ending 30 June 2002, suchtransactions between wholly-owned public sector entitiesare now recognised in the statement of financial positionas adjustments to net assets in the general governmentsector where, in substance, they satisfy the definition of a contribution by owner.

This change in accounting policy for transfers of assetsand liabilities is in compliance with the accountingrequirements of Urgent Issues Group Abstract 38‘Contributions by Owners Made to Wholly-owned PublicSector Entities’ and the Accounting and Financial ReportingBulletin, No. 39, ‘Accounting for Contributed Capital’.

27


The VQA has assumed assets of $825,228 and liabilities of $227,003 from the Victorian Learning and EmploymentSkills Commission in respect of employee entitlementswhich accrued to employees, fixed assets and cash. Theeffective date of transfer was 1 July 2001. In accordancewith Urgent Issues Group Abstract 38, ‘Contributions byOwners Made to Wholly-owned Public Sector Entities’, theVQA recognised the transfer of net assets $598,224 asresources provided free of charge.

Note 2 Restructuring of administrative arrangements

2002$

In respect of the activities assumed, the following assets and liabilities were recognised:

Assets

Fixed assets 41,069

Cash 784,159

Total assets 825,228

Current liabilities

Provision (106,604)

Non-current liabilities

Provision (120,399)

Total liabilities (227,003)

Net assets 598,225

Note 3 Revenue

(a) Revenue by source2002

$

Revenue from Government

State Government grants 1,920,000

Resources received free of charge or for nominal consideration 619,709

2,539,709

Revenue from other parties

Registration fees 954,670

Donation 3,500

958,170

Total revenue 3,497,879

Financial report

28

Note 4 Result from ordinary activities

Net expenses2002

$

Result from ordinary activities includes the following specific net expenses:

Expenses

Salaries and wages 1,305,630

Superannuation 144,290

Annual leave and long-service leave expense 401,045

Other on-costs (Fringe Benefits tax, Payroll tax and WorkCover levy) 100,141

Total employment entitlement 1,951,106

Depreciation

Equipment 39,680

Total depreciation 39,680

Rental expense relating to operating leases

Minimum lease payments 8,149

Total rental expense relating to operating leases 8,149

Remuneration of auditors

Victorian Auditor-General’s Office 17,000

Total remuneration Victorian Auditor-General’s Office 17,000

Note 5 Cash assets

2002$

Cash balance 1,361,115

The above figures are reconciled to cash at the end of the financial period as shown in the statement of cash flows as follows:

Balances as above 1,361,115

Balances per statement of cash flows 1,361,115

Cash at bank

The VQA is not part of the Public Account, and is treated as General Government Budget Sector.

Due to the State of Victoria’s investment policy and government funding arrangements, Budget sector agencies generally do not hold a large cash reserve in their bank accounts.

Note 6 Receivables 2002

$

Current:

Debtors 12,381

29


Note 7 Non-current assets

2002$

Computers and peripheral equipment

At cost 102,117

Less: Accumulated depreciation (42,780)

59,337

Office equipment and furniture

At cost 13,092

Less: Accumulated depreciation (2,094)

10,998

Total 70,335

Reconciliation

Reconciliations of the carrying amounts of each class of office equipment at the beginning and end of the current financial period are set out below.

Computers and Office equipment 2002peripheral equipment and furniture

$ $ $

Carrying amount at start of period

Additions 41,594 7,092 48,686

Disposals – (1,223) (1,223)

Revaluation increments – – –

Net transfers free of charge 55,462 7,090 62,552

Depreciation/amortisation expense (note 4) (37,719) (1,961) (39,680)

Carrying amount at end of period 59,337 10,998 70,335

Note 8 Payables

2002$

Trade creditors 144,987

Financial report

30

Note 9 Provisions

2002$

Current

Employee entitlements

Annual leave 115,905

Long-service leave 30,294

146,199

Non-Current

Employee entitlements

Long service leave 284,454

Aggregate carrying amount of provisions

Current 146,199

Non-current 284,454

Employee entitlements 430,653

Note 10 Equity and movements in equity 2002

$

Accumulated surplus

Accumulated surplus as at 1 March 2001 –

Net result for the reporting period 869,414

Transfer of asset (carrying value) (1,223)

Accumulated surplus as at 30 June 2002 868,191

Total equity 868,191

Note 11 Employee entitlement

2002$

Employee entitlement liabilities

Provision for employee entitlements

Current 146,199

Non-current 284,454

Aggregate employee entitlement liability 430,653

Employee numbers

Total employees during the financial period, including employees previously working for VQA but no longer employed there. 29

31


Contribution Contribution outstandingfor the period at period end

2002 2002$ $

Fund

State Superannuation Fund (defined benefit scheme) 101,058 4,396

Vic Super (accumulated scheme) 36,380 –

State Employees Retirement Benefits Scheme (defined benefit scheme) 2,278 96

Other private schemes 82 –

Total 139,798 4,492

The bases for contributions are determined by the various schemes.

All employees of the VQA are entitled to benefits onretirement, disability or death from the GovernmentEmployees Superannuation Fund. This Fund providesdefined lump sum benefits based on years of service andfinal average salary.

The above amounts are measured as at 30 June of each year.

Note 11 Employee entitlement (continued)

Provision for employee entitlements

As explained in note 1j(ii) and (iii), the amounts for long-service leave and superannuation are measured at their present values. The following assumptions were adopted in measuring present values:

Long-service leave 2002

Weighted average rates of increase in annual employee entitlement tosettlement of the liabilities 4.60%

Weighted average discount rates 5.82%

Weighted average terms to settlement of liabilities 8 years

2002Superannuation % rate

Name of scheme

State Superannuation Fund – Revised Scheme 15.50

State Superannuation Fund – New Scheme – 0% contributor 8.00




VicSuper* 8.00

State Employees Retirement Benefit Scheme 12.50

Other private schemes** n/a

*Under the VicSuper Scheme, employer contributions are payable only if the member is paid more than $450 in gross salary in a particular month. This is consistent with Commonwealth Superannuation Guarantee legislation.

**The rate for other private schemes is not disclosed as these payments are predominantly the result of performance-relatedpayments, which vary by individual.

Government Employees Superannuation Fund

No liability is recognised in the statement of financialposition for the VQA’s share of the State’s unfundedsuperannuation liability. The State’s unfunded super-annuation liability has been reflected in the financialstatements of the Department of Treasury and Finance.

However, superannuation contributions for the reportingperiod are included as part of salaries and associated costsin the statement of financial performance of the VQA.

The name and details of the major employee super-annuation funds and contributions made by the Authority are as follows:

Financial report

32

Note 12 Financial instruments

(a) Interest rate risk exposures

The VQA is not exposed to either interest rate price or cash flow risk since it holds no financial assets or liabilities that are subject to either floating or fixed interest charges.

2002 Fixed interest maturing in:Floating 1 year Over 1 More than Non-interest- Total

interest rate or less to 5 years 5 years bearingNotes $ $ $ $ $ $

Financial assets

Cash balance 5 – – – – 1,361,115 1,361,115

Receivables 6 – – – – 12,381 12,381

– – – – 1,373,496 1,373,496

Weighted average interest rate – – – – – –

Financial liabilities

Payables 8 – – – – 144,987 144,987

– – – – 144,987 144,987

Weighted average interest rate – – – – – –

Net financial liabilities – – – – 1,228,509 1,228,509

2002Carrying amount Net fair value

$ $

On-balance sheet financial instruments

Financial assets

Cash balance 1,361,115 1,361,115

Receivables 12,381 12,381

Non-traded financial assets 1,373,496 1,373,496

Financial liabilities

Payables 144,987 144,987

Non-traded financial liabilities 144,987 144,987

(b) Net fair value of financial assets and liabilities

The net fair value of cash and cash equivalents and non-interest-bearing monetary financial assets and financialliabilities of the VQA approximates their carrying amounts.

The net fair value of other monetary financial assets andfinancial liabilities is based upon market prices where amarket exists or by discounting the expected future cashflows by the current interest rates for assets and liabilitieswith similar risk profiles.

For non-traded equity investments, the net fair value isbased on the underlying net assets, future maintainableearnings and any special circumstances pertaining to aparticular investment.

The carrying amounts and net fair values of financialassets and liabilities at reporting date are:

None of the classes of financial assets and liabilities arereadily traded on organised markets in standardised form.

Net fair value is exclusive of costs which would beincurred on realisation of an asset, and inclusive of costswhich would be incurred on settlement of a liability.

33


In accordance with the Directions of the Minister for Financeunder the Financial Management Act 1994, the followingdisclosures are made for the Responsible Ministers and theResponsible Persons for the reporting period.

Names

The persons who held the above positions in the VQA areas follows:

Minister for Education and TrainingThe Hon. Lynne Kosky, MP 1 March 2001 to 30 June 2002

Accountable OfficersMs Patricia Neden 1 March 2001 to 31 August 2001Dr Dennis Gunning 1 September 2001 to 30 June 2002

Board membersMr Peter Annett 1 March 2001 to 30 June 2002 Mr Paul Briggs 1 March 2001 to 30 June 2002Mr Alan Clifford 1 March 2001 to 30 June 2002Mr Stuart Hamilton 1 March 2001 to 30 June 2002Ms Pam Jonas 1 March 2001 to 30 June 2002Mr Peter Kirby 1 March 2001 to 30 June 2002Mr Peter Laver 1 March 2001 to 30 June 2002 Mr Peter Thomas 1 March 2001 to 31 December 2001Professor Kwong Lee Dow 1 March 2001 to 30 June 2002Professor Stuart Macintyre 1 March 2001 to 30 June 2002Ms Julie Moss 1 March 2001 to 30 June 2002Professor Helen Praetz 1 March 2001 to 30 June 2002Ms Virginia Simmons 1 March 2001 to 30 June 2002Ms Joanne Tate 1 March 2001 to 30 June 2002Ms Elizabeth Ward 1 March 2001 to 30 June 2002Ms Shirley Martin (substitute for one meeting)

Note 13 Ministers and Accountable Officers

Remuneration

Remuneration received or receivable by the Accountable Officers in connection with the management of the Authority during the reporting period were in the range:

Income band Total remuneration Base remuneration

$90,000–$99,999 1 1

$100,000–$119,999 1 1

Total amount ($) 217,006 217,006

Amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet.

Financial report

34

Note 13 Ministers and Accountable Officers (continued)

The numbers of members of the Board whose emolument/remuneration fell within the following bands were:

Income band No.

$0–$999 5

$1,000–$1,999 1

$2,000–$2,999 5

$3,000–$3,999 3

$90,000–$90,999 1

15

Total remuneration received, or due and receivable by board members $114,675

Other transactions

Other related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been considered and there are no matters to report.

Note 14 Contingent liabilities

There are no contingent liabilities to be disclosed in the financial period.

Note 15 Commitments for expenditure

2002$

Lease commitments

Commitments in relation to leases contracted for at the reporting date but not recognised as liabilities, payable:

Within one year 10,056

Later than one year but not later than 5 years 11,950

Total 22,006

Note 16 Event occurring after reporting date Subsequent to reporting date, no significant event has to be disclosed.

Note 17 Reconciliation of results from ordinary activities to net cash inflow from operating activities

2002$

Results from ordinary activities 869,414

Depreciation and amortisation 39,680

Assets received free of charge (62,552)

Change in operating assets and liabilities, net of effects from restructuring

Increase in receivables (12,381)

Increase in payables 144,987

Increase in other provisions 430,653

Net cash inflow from operating activities 1,409,801

35


ACCOUNTABLE OFFICER’S DECLARATION

We certify that the attached financial statements for the Victorian Qualifications Authority havebeen prepared in accordance with Part 9 of the Directions of the Minister for Finance under theFinancial Management Act 1994, applicable Australian Accounting Standards and othermandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the statement of financialperformance, statement of financial position, statement of cash flows and notes to and formingpart of the financial statements, presents fairly the financial transactions during the 16-monthperiod ended 30 June 2001 and the financial position of the Authority as at 30 June 2002.

We are not aware of any circumstance which would render any particulars included in thefinancial statements to be misleading or inaccurate.

Dr Dennis Gunning Professor Helen PraetzAccountable Officer ChairVictorian Qualifications Authority Victorian Qualifications Authority

Melbourne Melbourne25 September 2002 25 September 2002

Financial report

36

37


Index of compliance The annual report of the VQA is prepared in accordancewith the Financial Management Act 1994 and the Directionsof the Minister for Finance. This index facilitatesidentification of the VQA’s compliance with the Directionsof the Minister for Finance by listing references todisclosures in this financial report.

Report of operations

Clause Disclosure Page

Charter and purpose

9.1.3 (i) (a) Manner of establishment and Ministers 3–49.1.3 (i) (b) Objectives, functions, powers and duties 49.1.3 (i) (c) Name and range of services provided 4, 8

Management and structure

9.1.3 (i) (d) (i) Name of Chief Executive Officer 2, 89.1.3 (i) (d) (ii) Names of senior office holders and brief description of responsibility 89.1.3 (i) (d) (iii) Organisational structure 9

Financial and other information

9.1.3 (i) (e) Statement of workforce data and merit and equity 8, 209.1.3 (ii) (a) Summary of the financial results for the year 109.1.3 (ii) (b) Significant changes in financial position during the year 109.1.3 (ii) (c) Operational and budgetary objectives and performance against objectives 11–189.1.3 (ii) (d) Major changes or factors affecting achievement 11–189.1.3 (ii) (e) Subsequent events 349.1.3 (i) (f) Application and operation of Freedom of Information Act 1982 19–209.1.3 (ii) (h) Compliance with building and maintenance provisions of Building Act 1993 209.1.3 (ii) (k) Statement on National Competition policy 209.1.3 (ii) (f) Details of consultancies over $100,000 209.1.3 (ii) (g) Details of consultancies under $100,000 209.1.3 (ii) (i) Statement of availability of other information 209.1.3 (ii) (j) Compliance index 37–89.6.2 (i) (ii) (iii) (iv) Disclosure of major contracts 209.8 2 Occupational health and safety 20

Financial statements

Clause Disclosure Page

Basis of preparation and other compliance details

9.2.2 (ii) (a) Accrual basis of accounting 259.2.2 (ii) (b) Compliance with Australian Accounting Standards and other authoritative pronouncements 259.2.2 (ii) (c) Compliance with Ministerial Directions and Accounting and Financial Reporting Bulletins 259.2.2 (ii) (d) Adoption of the historical cost convention, except for specified assets 259.2.2 (iii) Rounding of amounts n/a9.2.2 (i) (d) Notes to the financial statements (contents page) 249.2.2 (iv) Accountable Officer’s declaration 35

Statement of financial performance

9.2.2 (i) (a) Statement of financial performance 229.2.3 (ii) (a) Operating revenue by source 279.2.3 (ii) (b) Investment income by class n/a9.2.3 (ii) (c) Other material revenue, including disposal of non-current assets n/a9.2.3 (ii) (e) Depreciation 22, 26, 28, 299.2.3 (ii) (f) Bad and doubtful debts n/a9.2.3 (ii) (g) Financing costs n/a9.2.3 (ii) (h) Net increment or decrement on revaluation recognised in the statement of financial performance n/a9.2.3 (ii) (i) Audit expense 289.7.2 (i) (ii) Motor vehicle lease commitments 34

Statement of financial position

9.2.2 (i) (b) Statement of financial position 229.2.3 (iii) (a) (i) Cash at bank and funds held in trust 22, 28, 329.2.3 (iii) (a) (ii) Inventories by class n/a9.2.3 (iii) (a) (iii) Receivables, including trade debtors, loans and other debtors 22, 289.2.3 (iii) (a) (iv) Other assets, including prepayments 229.2.3 (iii) (a) (v) Investments n/a9.2.3 (iii) (a) (vi) Plant and equipment 22, 299.2.3 (iii) (a) (vii) Intangible assets n/a9.2.3 (iii) (b) (i) Overdrafts n/a9.2.3 (iii) (b) (ii) Other loans n/a9.2.3 (iii) (b) (iii) Trade and other creditors 22, 299.2.3 (iii) (b) (iv) Finance lease charges n/a9.2.3 (iii) (b) (v) Provisions, including employee entitlements 22, 30–19.2.3 (iii) (c) (i) (ii) Equity 22, 309.2.3 (iii) (d) (i) (iv) Reserves, and transfers to and from reserves n/a

Statement of cash flows

9.2.2 (i) (c) Statement of cash flows during the year 23

Other disclosures in notes to the financial statements

9.2.3 (iv) (a) Liability secured by a charge over assets n/a9.2.3 (iv) (b) Contingent liabilities 349.2.3 (iv) (c) Commitments for expenditure 349.2.3 (iv) (d) Government grants received or receivable 279.2.3 (iv) (e) Employee superannuation funds 319.2.3 (iv) (f) Assets received without adequate consideration n/a9.4 Responsible person-related disclosures 33–4

38

39


Acronyms and abbreviationsAQTF Australian Quality Training Framework

STAR System for Training and Recognition

TAFE Training and further education

VACCHO Victorian Aboriginal Community Controlled Health Organisation

VCAL Victorian Certificate of Applied Learning

VCE Victorian Certificate of Education

VET Vocational education and training

VQA Victorian Qualifications Authority

Victorian Qualifications Authority

Making qualifications work for Victorians by:

• safeguarding the standard of Victorian qualifications

• ensuring qualifications work for Victoria’s economic

future

• providing qualification options that help Victorians

achieve their career and personal ambitions.

The VQA’s office is situated in the precinct of State

Government offices near Melbourne’s Treasury Gardens.

41a St Andrews Place

East Melbourne Victoria 3002

(Melway reference 2F K3)

Telephone (03) 9637 2806

Facsimile (03) 9637 2422

Email [email protected]

For further information visit the VQA website at

www.vqa.vic.gov.au

2001–02

41a St Andrews Place

East Melbourne Victoria 3002

Telephone (03) 9637 2806

Facsimile (03) 9637 2422

Email [email protected]

Website www.vqa.vic.gov.au

2001–02Victorian Qualifications Authority

2001–02 - Department of Education and Training€¦ · ANNUAL REPORT 2001–02 Membership...

Documents

Transcript of 2001–02 - Department of Education and Training€¦ · ANNUAL REPORT 2001–02 Membership...