Canberra Institute of

Technology

Statement of Intent

2015-16

1

Canberra Institute of Technology

TheCanberra Institute of Technology (CIT) is a Territory Authority established under the Canberra Institute of Technology Act 1987 (the Act).

This Statement of Intentfor 2015-16has been prepared in accordance with Section 61 of the Financial Management Act 1996.

The responsible Minister, Ms Joy Burch MLA,was consulted during the preparation of the Statement of Intent.

The Statement of Intent, which focuses on the 2015-16 Budget year, has been developed in the context of a four year forward planning horizon to be incorporated, as far as practicable, into the CITstrategic and business planning processes.

The CIT2015-16 Statement of Intent has been agreed between:

1

Ms Leanne Cover

Acting Chief Executive

Canberra Institute of Technology

Andrew Barr MLA

Treasurer

May 2015

1

May 2015

Ms Joy Burch MLA

Minister for Education and Training

May 2015

1

Contents

Purpose

Nature and scope of activities

Responsibilities of the ACT Education and Training Directorate and CIT

Performance measures and targets

Employment profile

Monitoring and reporting

Financial Arrangements

Attachment 1 Financial Statements

Attachment 2 Strategic Asset Management Plan

Attachment 3 Calendar Year Financial Statements

Attachment 4 CIT Training Profile

1
CANBERRA INSTITUTE OF TECHNOLOGY STATEMENT OF INTENT
/
2015-16

Purpose

The major corporate objectives of CIT relevant to the Statement of Intent are:

  • to provide quality, value for money services in all aspects of CIT’s operations;
  • subject to the Canberra Institute of Technology Act 1987, to operate as a customer service oriented entity along business-like lines;
  • to adopt high standard operating practices to safeguard the environment and health and safety of staff and students;
  • to provide a productive and satisfying work place for staff, and a commitment to high standards of human resource management based on the values of respect, integrity, collaboration and innovation; and
  • to use financial practices which satisfy the requirements of the Financial Management Act 1996, including the associated Accounting Policy Papers, modelled on the requirements of Australian Accounting Standards, and which fairly present CIT’s financial position, operational and cash flow results for planning and reporting purposes.

Nature and scope of activities

CIT’s mission is changing lives through quality education and skills development for individuals, industry and the community. CIT’s three strategic drivers: Learners, People and Partners will enable CIT to strengthen its position as a leader of vocational education and training and to be successful in a more demand driven market going forward.

CIT is committed to enriching learners with skills and knowledge for now and the future, cultivating our workforce to embody a culture of passion, innovation and high performance, and collaborating with industry, community and government to diversify and grow CIT partnerships and revenue sources.

2015-16 Priorities

Strategic and operational initiatives to be pursued in 2015-16 include:

  • providing quality, accessible vocational education and training (VET)which is industry relevant and produces skilled, work-ready graduates for the economy as well as access to further learning pathways and to continue to achieve high levels of learner and employer satisfaction by providing a quality technical and further education experience;
  • delivering a new CIT campus at Tuggeranong and upgrading the Bruce and Reid campuses (as part of the CIT Campus Modernisation Strategy) to ensure greater utilisation of existing facilities and to accommodate an increased range of courses at campuses with greatest demand;
  • establishing new international, national and local markets to increase commercial and contestable revenue;
  • fostering innovation and building staff capability in all aspects of the business and promoting a collaborative team based culture to drive performance, organisational sustainability and business growth;
  • improving online and face-to-face service options for all students, increase flexibility of how and where learning occurs and increase opportunities for lifelong learning and educational pathways;
  • nurturing existing and developing new education and training, business and community partnerships to strengthen CIT’s role in the ACT;
  • working collaboratively with the ACT Education and Training Directorate (ETD) to ensure the ACT Government’s commitments to structural reforms through the National Partnership Agreement on Skills Reform (the NP) are met. This includes:

-implementing new governance arrangements for CIT through the establishment of a CIT Governing Board with an independent Chair with significant business and industry expertise and experience;

-developing, trialling and implementing an enhanced model for the delivery and administration of Australian Apprenticeships;

-investigating system and policy changes required to enable CIT to operate effectively in an environment of greater competition; and

-embedding systems and processes to assist the ACT’s Implementation Plan for the National Partnership Agreement on Skills Reform, including providing Income Contingent Loans for Diploma/Advanced Diploma students to promote access to vocational education and training andthe introduction of the Unique Student Identifier (USI).

  • embedding respect and integrity in the workplace through continuing leadership development, promoting the ACTPS values and signature behaviours, building staff capability in all parts of the business and enhancing opportunities for professional and personal growth of staff; and
  • collaborating with ETD and the Chief Minister, Treasury and Economic Development Directorate to ensure optimal training outcomes for ACT VET students, the productivity of the ACT workforce and the reputation of the ACT VET sector.

CIT Training Profile and Associated Items

Contextual Framework

A well educated community is the basis of Canberra’s social and economic wellbeing. There is a clear strategic link between VETand the economic and social development of the ACT.

The provision of VET through CIT is an important element in the ACT Government’s commitment to assist people of the ACT to be part of a well-trained and highly skilled workforce that will promote a strong and vibrant ACT economy. CIT’s delivery forms an integral component of the ACT’s VET commitment with a high percentage of ACT training funded through CIT.

Risks

Managing CIT risk is a key governance responsibility and comprises the Strategic Business Risk Profile, as well as prevention of fraud and corruption risk. Six categories have been identified for each, one of which includes financial sustainability.

In 2014-15, progress reports showed that many of our business risk rankings had been significantly reduced as a result of successful mitigating strategies and a focus on continual reporting to the Board of Management and the Audit Committee. The risks identified for both business and fraud and corruption link directly to our Risk Environment Plan, which is continually reviewed to ensure CIT is addressing both strategic and any emerging operational risks. Monitoring of risk is also embedded in all CIT Business Plans.

CIT undertakes monthly reporting and analysis of its financial performance, both at an organisation and cost centre level which assists in identifying and addressing any financial risks. CIT also undertakes monthly reporting and analysis of its annual performance measures as identified in the Statement of Intent and the ACT Government Budget. This process assists in identifying any performance risks. Financial, risk and performance reporting will be provided to the new CIT Governing Board on a regular basis as part of the implementation of new governance arrangements.

Responsibilities of the ACT Education and Training Directorate and CIT

Both parties agree to collaborate to ensure optimal training outcomes for ACT VET students, the productivity of the ACT workforce and the reputation of the ACT VET sector.

The responsibilities of CIT include:

  • providing quality and accessible VET;
  • performing the role of public provider of VET in the ACT;
  • supporting ACT industry and businesses in pursuing economic growth and sustainability;
  • providing innovative workforce development solutions for business and industry to improve workforce skills;
  • contributing to the ACT VET planning process and to contribute to the development of national policy advice including advice on the impact of the National reform agenda on public providers;
  • supporting goals and targets of ACT and national VET plans and strategies, including those agreed by the Council of Australian Governments with a particular commitment to improving outcomes for equity and target groups;
  • advising ETD on appropriate service and reporting standards; and
  • reporting accurately by the specified dates.

The responsibilities of ETD include:

  • the strategic management of VET policy, reform and outcomes in the ACT;
  • determining the ACT’s training needs and funding priorities in conjunction with other government agencies, CIT, Registered Training Organisations and industry;
  • specifying service and reporting standards in consultation with CIT and other ACT VET Stakeholders; and
  • seeking CIT input and involvement, where relevant, in the development of local and national VET policy.

ACT Implementation Plan for National Partnership Agreement on Skills Reform

The ACT Government and Commonwealth Government signed the Implementation Plan for the National Partnership Agreement on Skills Reform (IP) in November 2012. CIT is a key partner of Government in implementing the structural reforms and delivering the training outcomes committed to under the National Partnership. Work being undertaken by CIT in 2015-16 to assist the ACT Government includes:

Efficiency

CIT will continue to work with the ACT Government to implement the revised governance arrangements for public provision of VET training in the ACT, to ensure the ongoing viability and effectiveness of the public provider in a more competitive environment.

Access and Equity

CIT will assist the ACT Government to strengthen and increase its commitment to government subsidised training by supporting the National Entitlement to Training. The National Entitlement to Training, managed by ETD, ensures working age persons without qualifications can access training they require to work in higher skilled jobs through a government-subsidised training place to at least a Certificate III qualification.

Quality

CIT will work with ETD with a view to creating a more transparent VET sector by assisting the ACT Government reforms to its own data collection function. This will be enhanced and aligned with the agreed objectives of national reform in the areas of data collection, sharing and reporting, including USI reporting obligations.

Targets

CIT will commit to assisting ETD in delivering an agreed proportion of the ACT’s Skills Reform targets at a negotiated price flowing from the Commonwealth’s training funds associated with the National Partnership Agreement.

Flexibility

It is recognised that there is a need for flexibility to allow the training mix to be reshaped in order to meet unforeseen, new or emerging needs. If either party identifies a need for additional training, this may be accommodated by way of a variation to CIT’s Training Profile.

Specification of Output

CIT will provide 3.446 million nominal hours in accordance with the CIT Training Profile, as outlined in Attachment 4.

Australian Apprenticeship Obligation

CIT and the ACT Government negotiate a Memorandum of Understanding (MOU) in relation to CIT’s delivery of Australian Apprenticeships in the ACT for each calendar year. Given the structural reforms that the ACT Government has committed to through the NP, CIT will review the 2015 MOU with the ACT Government for efficiencies and changes which will best meet the requirements of current and future MOUs. This review will consider the requirement for CIT to meet standard compliance, reporting and payment arrangements for Australian Apprenticeships from 1January2016.

ACT Government may also require CIT to provide training for specific Australian Apprentices, or Australian Apprenticeships qualifications, at a price to be agreed between parties. This may occur should circumstances arise where another provider with existing students is no longer able to deliver in the ACT and CIT has the scope, capacity and capability to provide the training required.

Reporting Requirements

Reporting for all items relevant to CIT’s Training profile will be to the relevant standard set by the Commonwealth Department of Education and Training. This is the Australian Vocational Education and Training Management Information Statistical Standard (AVETMISS), or any other National Centre for Vocational Education Research (NCVER) standard, as required by ETD. Variation from these standards can only occur by agreement with ETD. ETD will coordinate the reporting of financial data for the annual National VET Statistics Collection.

Monitoring and Reporting

Statistical Data

CIT will provide to ETD statistical and other information to support the Directorate’s reporting requirements to the ACT Government and the Commonwealth Department of Education and Training, as well as supporting planning of VET within the ACT.

The AVETMISS compliant statistical information will be provided to NCVER (through ETD) in accordance with the Department of Education and Training reporting requirements.

CIT agrees to provide validated data relating to the 2015 calendar year to ETD a minimum of one week prior to the submission dates set by NCVER, which acts as the managing agent for the Department of Education and Training. CIT agrees to validate the data to ensure it is error-free prior to submission using the National AVETMISS audit compliance software AVETPAK. Up-to-date copies of AVETPAK are available on the NCVER website

CIT provided the actual figures for 2014 in March 2015.

Implementation of Training Packages

Under national agreements, the ACT is committed to implementing Training Packages. CIT will comply with Clauses 1.26 and 1.27 of the Standards for Registered Training Organisations (RTOs) 2015 (Transition of training products).

CIT will comply with the Australian Skills Quality Authority’s (ASQA) general directions with regard to the implementation of training packages.

Performance measures and targets

Key Performance Indicators for 2015-16 to 2018-19

CIT’s strategic and accountability indicators can be found in the 2015-16 Budget papers.

The figures shown in the following table represent calendar year information consistent with CIT’s annual reporting cycle.

Accountability Indicators

It is currently anticipated that accountability indicators will remain reasonably consistent between 2015 and 2019.

2014
Target / 2014
Outcome / 2015
Target
Output Class 1: Canberra Institute of Technology
Output 1.1: Provision of Vocational Education and Training Services
a)Nominal Hours / 3,691,000 / 3,864,437 / 3,446,000
b)Achieve key output targets:
  1. Program Enrolments
  2. Module Pass Rates1
  3. Program Completions1
  4. Learner Satisfaction Rate2
  5. Employer Satisfaction Rate2
/ 15,200
75%
6,300
85%
80% / 15,764
82%
6,818
91%
85% / 14,800
75%
6,200
85%
80%
c)Average Government Payment per Nominal Hour / $18.22 / $17.40 / $19.26

Notes:

1-2.Notes 1-2 are provided under the heading Assessment of performance against 2014-15 objectives on the following page of this document.

Performance Measure Definitions

a)Nominal Hours is the nationally accepted quantitative output measure for the VET sector. It measures the anticipated hours of supervised learning or training provided by CIT to adequately present the educational material associated with the delivery and assessment of a program of study. It also includes student contact hours delivered through a recognition of prior learning process. Nominal Hours includes Paid and Non-Paid Nominal Hours and excludes any Nominal Hours relating to students with Withdrawal – Without attendance grade.

b)Output targets are as specified below noting that ‘Profile’ relates to training activities that are funded directly by the ACT Government appropriation for the provision of public access VET. These are:

  1. the number of records of students completing program enrolment requirements in accordance with AVETMISS;
  2. the proportion of successful module (subject) outcomes compared to module enrolments weighted by Nominal Hours in accordance with the national AVETMIS Standard;
  3. the number of student records where program completion requirements have been met in accordance with the AVETMIS Standard for students completing study in the previous academic year(s). This measure does not include completions for non-accredited training such as Adult Community Education (ACE) programs;
  4. learner satisfaction rates measure the proportion of current students who indicated that were satisfied with the training they received at CIT. The learner survey has been designed by the Australian Council for Educational Research (ACER) to collect data relating to the Australian Quality Training Framework (AQTF) quality indicator (QI) ‘Learner Satisfaction’; and
  5. employer satisfaction rates measure the proportion of employers indicating that they were satisfied with training provided at CIT. The Employer Survey has been designed by the ACER to collect data relating to the AQTF QIs and Employer Satisfaction.

c)The Average Government Payment per Nominal Hour is an output target calculated as the Total Government Payment for Outputs divided by the Nominal Hours outcome for training programs delivered under the CIT’s training profile.

Assessment of performance against 2014-15 objectives

Note 1: Program completions and module pass rates are above target due to CIT’s continued focus on high-quality and relevant training and support for CIT’s students, as reflected in CIT’s 2014 Learner Engagement Survey results.

Note 2: The 2014 surveys of learner engagement and employer satisfaction showed overall levels of satisfaction with the training of 91 and 85 per cent respectively, reflecting employers’ and students’ positive view of their experience of CIT training. Learner Satisfaction Rate results were based on the survey of students enrolled in nationally accredited programs. CIT has continued to actively improve its effectiveness and responsiveness in skilling students with contemporary training methods, which have been very positively received by industry and students alike.

Employment profile

CIT undertakes to satisfy the requirements of the Public Sector Management Act 1994, relevant enterprise bargaining agreements, and all other relevant industrial relations legislation, awards and conditions.

The CIT’s employment profile for 2015-16 is shown below.