Report on Annual and Financial Reports 2015-2016
Report on Annual and Financial Reports 2015-2016
Standing Committee on Education, Employment and Youth Affairs
May 2017
Report 1
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Report on Annual and Financial Reports 2015-2016
Committee membership
Mr Michael Pettersson MLA Chair
Mrs Elizabeth Kikkert MLA Deputy Chair
Mr Chris Steel MLA Member
Mr Andrew Wall MLA Member
Secretariat
Mr Andrew Snedden Acting Secretary
Ms Josephine Brown Senior Research Officer
Ms Lydia Chung Administrative Assistant
Contact information
Telephone 02 6205 0199
Post GPO Box 1020, CANBERRA ACT 2601
Website www.parliament.act.gov.au
Resolution of appointment
On 13 December 2016, the ACT Legislative Assembly agreed by resolution to establish legislative and general purpose standing committees to inquire into and report on matters referred to them by the Assembly or matters that are considered by the committees to be of concern to the community, including:
A Standing Committee on Education, Employment and Youth Affairs (the Committee) to examine matters related to early childhood education and care, primary, secondary, post secondary and tertiary education, non-government education; industrial relations and work safety; and youth services.
The Legislative Assembly agreed that each committee shall have power to consider and make use of the evidence and records of the relevant standing committees appointed during the previous Assembly. [1]
Terms of reference
On 16 February 2017, the Legislative Assembly referred the annual and financial reports for the calendar year 2015 and the financial year 2015–2016 to Assembly committees for inquiry and report by the last sitting day in May 2017. These reports had been presented to the Assembly pursuant to the Annual Reports (Government Agencies) Act 2004.
Acronyms
AR Act / Annual Reports (Government Agencies) Act 2004Directions / Annual Report Directions
EDU / Education Directorate
VET / Vocational Education and Training
ABS / Australian Bureau of Statistics
CMTEDD / Chief Minister, Treasury and Economic Development Directorate
NAPLAN / National Assessment Program – Numeracy and Literacy
FINE / Forecasting industry Need Entitlement
RTO / Registered Training Organisation
ASQA / Australian Skills Quality Authority
The Authority / The ACT Building and Construction Industry Training Fund Authority
MOU / Memorandum of Understanding
EPSDD / Environment, Planning and Sustainable Development Directorate
CIT / The Canberra Institute of Technology
UC / University of Canberra
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Report on Annual and Financial Reports 2015-2016
Table of contents
Committee membership i
Secretariat i
Contact information i
Resolution of appointment ii
Terms of reference ii
Acronyms iii
Recommendations vii
1 Introduction 1
Conduct of the inquiry 1
Acknowledgements 2
Report overview 3
2 Annual Reporting Requirements 5
Reporting framework 5
Timing and Presentation of Annual Reports 7
3 Education Directorate 9
Introduction 9
Early Childhood Development 10
Problem Behaviour and Management 12
National Assessment Program – Numeracy and Literacy 15
Classroom Upgrades 17
Safe Schools Program 18
Other Issues 20
4 Workplace Safety and Industrial Relations 21
Introduction 21
Portable Long Service Leave Schemes 21
Getting Home Safely Report 22
Public Sector Workers Compensation Premiums 23
Other Issues 23
5 Skills Canberra 25
Introduction 25
National Partnership on Skills Reform 25
Identifying and Funding Skills Needs in the ACT 26
Other Issues 27
6 ACT Building and Construction Industry Training Fund Authority 29
Introduction 29
Promotion of Access to the Training Fund 29
Levy Collection Fee 30
Other Issues 31
7 Canberra Institute of Technology 33
Introduction 33
Campus Modernisation Strategy 33
Campus Printing Costs 34
Other Issues 35
8 University of Canberra 37
Introduction 37
9 Conclusion 39
Appendix A Witnesses 41
Appendix B Questions Taken on Notice and Questions on Notice……. 43
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Report on Annual and Financial Reports 2015-2016
Recommendations
Recommendation 1
3.17 The Committee recommends that the ACT Government report to the Legislative Assembly on the status of the partnership agreement with the Commonwealth Government for universal access to early childhood education.
3.18 The Committee recommends that the Education Directorate report in the 2016-17 Annual Report on the comparative breakdown of ACT and interstate children currently accessing ACT preschool, primary school and high school programs.
Recommendation 2
3.32 The Committee recommends that the Education Directorate examine what additional steps and/or measures could be taken to reduce the number of incidents of occupational violence and report those matters in the Education Directorate 2016-17 Annual Report.
Recommendation 3
3.39 The Committee recommends that the Minister for Education and Early Childhood Development report on the progress of the People, Practice and Performance framework at the 2016-17 Annual and Financial Report hearings.
Recommendation 4
3.46 The Committee recommends that in its 2016-17 Annual Report, the Education Directorate report on progress towards the installation of air conditioning at ACT schools and colleges.
3.47 The Committee recommends that in its 2016-17 Annual Report, the Education Directorate report on progress towards proposed classroom upgrades.
Recommendation 5
3.54 The Committee recommends that the Education Directorate provide updated information on the development and implementation of the ACT Safe Schools Program as it is being implemented in ACT schools.
3.55 The Committee also recommends that the Minister for Education and Early Childhood Development provide advice to the Committee on the role, scope and priorities of the ACT Safe Schools Program once it is established.
Recommendation 6
4.8 The Committee recommends that the Minister for Workplace Safety and Industrial Relations report back to the Committee at the 2016-17 Annual and Financial Report hearings on the results of the triennial actuarial review of the Territory’s portable long service leave schemes.
Recommendation 7
4.11 The Committee recommends that in its 2016-17 Annual Report, the Education Directorate report on the progress towards implementing the outstanding recommendations from the Getting Home Safely report.
Recommendation 8
4.15 The Committee recommends that the Minister for Workplace Safety and Industrial Relations report in its 2016-17 annual report on any options the ACT Government has taken up to address public sector workers compensation.
Recommendation 9
5.8 The Committee recommends that the Minister for Higher Education, Training and Research update the Legislative Assembly on future funding from the Commonwealth on skills reform.
5.9 If the National Partnership on Skills Reform is not renewed, the Committee recommends that the Minister for Higher Education, Training and Research advise the Committee on the ACT’s approach to funding skills reform without assistance from the Commonwealth.
Recommendation 10
7.10 The Committee recommends that CIT include in its 2017 annual report updated information on progress of its campus modernisation strategies, particularly regarding the CIT Woden campus closure.
Recommendation 11
7.15 The Committee recommends that in its 2017 Annual Report, CIT report on progress towards reducing printing costs at CIT.
Recommendation 12
8.8 The Committee recommends that the Minister for Higher Education, Training and Research advise the Assembly in the Government’s response to this report as to the appropriateness or otherwise of the Committee’s future consideration of the Annual Report and Financial Statements of the University of Canberra.
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Report on Annual and Financial Reports 2015-2016 43
1 Introduction
1.1 On 16 February 2017, the Assembly referred the 2015–16 annual and financial reports of all government agencies to the relevant standing committees of the Legislative Assembly for inquiry and report.[2]
1.2 The following annual reports and parts of reports were referred to the Committee and were examined by the Standing Committee on Education, Employment and Youth Affairs (the Committee) and were the subject of public hearings in March 2017.
§ ACT Building and Construction Industry Training Fund Authority;[3]
§ ACT Long Service Leave Authority;[4]
§ Canberra Institute of Technology– for calendar year 2015;[5]
§ Chief Minister, Treasury and Economic Development Directorate (Default Insurance Fund, Workplace Safety and Industrial Relations, and Skills Canberra);[6]
§ Education Directorate;[7] and
§ University of Canberra – for calendar year 2015.[8]
Conduct of the inquiry
1.3 The Committee held two public hearings; the first on 3 March 2017 and the second on 9 March 2017. At these hearings the Committee heard from a total of 30 witnesses. Details of witnesses who appeared are available in Appendix A of this report.
Transcripts from the hearings are available on the Assembly website at:
http://www.hansard.act.gov.au/hansard/2017/comms/default.htm#education
1.4 A total of 22 questions taken on notice were recorded at the Committee’s hearings. Following the hearings, eight further questions on notice were forwarded to the Committee Secretariat and submitted to the Minister responsible. Appendix B has the list of all questions taken on notice and questions on notice. Table 1 illustrates the breakdown of questions by portfolio.
Table 1 – Summary of Questions by Portfolio
Portfolio / Questions Taken on Notice / Questions on Notice (supplementary questions)Education Directorate / 9 / 7
Treasury – Workplace Safety and Industrial Relations / 5 / 0
ACT Long Service Leave Authority / 1 / 0
Economic Development – Skills Canberra / 0 / 0
Canberra Institute of Technology / 5 / 1
ACT Building and Construction Industry Training Fund Authority / 2 / 0
1.5 Answers to all questions have been provided on the inquiry webpage at: http://www.parliament.act.gov.au/in-committees/standing-committees-current-assembly/standing-committee-on-education,-employment-and-youth-affairs
Acknowledgements
1.6 The Committee thanks Ms Yvette Berry MLA, in her capacity as Minister for Education and Early Childhood Development, Ms Rachel Stephen-Smith MLA, in her capacity as Minister for Workplace Safety and Industrial Relations and Ms Meegan Fitzharris MLA, in her capacity as Minister for Higher Education, Training and Research. The Committee also thanks accompanying directorates and agency officials for providing their time and expertise as witnesses at annual hearings.
Report overview
1.7 This report is presented in four chapters:
§ Chapter 1 – Introduction;
§ Chapter 2 – Annual Reporting Requirements;
§ Chapter 3 – Education Directorate;
§ Chapter 4 – Workplace Safety and Industrial Relation;
§ Chapter 5 – Skills Canberra;
§ Chapter 6 – ACT Building and Construction Industry Training Fund Authority;
§ Chapter 7 – Canberra Institute of Technology;
§ Chapter 8 – University of Canberra; and
§ Chapter 9 – Conclusion.
Report on Annual and Financial Reports 2015-2016 43
2 Annual Reporting Requirements
2.1 Annual reports are accepted as the principal and most authoritative way in which Directorates’ agencies account to the Legislative Assembly and other stakeholders, including the public, for the ways in which they have discharged their statutory and other responsibilities and utilised public funds over a preceding 12 month period.[9]
2.2 As key accountability documents, annual reports are:
§ One of the main ways for agencies to account for their performance, through Ministers, to the Legislative Assembly and the wider community;
§ A key part of the historical record of government and public administration decisions, actions and outcomes;
§ A source of information and reference about the performance of agencies and service providers; and
§ A key reference document for internal management.[10]
2.3 Annual reports co-exist with other annual whole-of-government reporting processes to present an aggregated view of the performance of the ACT public sector as a whole.[11]
Reporting framework
2.4 Annual and financial reports are prepared by all reporting entities in accordance with the:
§ Annual Reports (Government Agencies) Act 2004;
§ Annual Report (Government Agencies) Notice 2015;
§ Financial Management Act 1996;
§ Territory-owned Corporations Act 1990; and
§ Where appropriate, reporting obligations specific to territory-owned corporations or public authorities as required by enabling or other applicable legislation.
Annual Reports (Government Agencies) Act 2004
2.5 The Annual Reports (Government Agencies) Act 2004 (the AR Act) sets the framework for annual reporting across the ACT public sector. This framework identifies which public bodies provide annual reports and outlines the time frame for provision of reports to the Legislative Assembly.[12]
Annual Report Directions 2014–15
2.6 The Annual Report Directions (the Directions), which are issued under section 9 of the AR Act:
…apply to all administrative units and those government agencies identified as public authorities. The reporting requirements specified within the Directions apply to Annual Reports for the 2014‐2015 and 2015‐2016 financial years with the reporting period being 1 July to 30 June (unless specified differently for particular agencies).[13]
2.7 The Directions state that annual reports should be ‘an objective account, primarily to the Legislative Assembly, of how the entity has performed during the reporting year’.[14]
2.8 The Directions also specify that an effective annual report will:
§ Provide clear information about the agency’s purpose, priorities, outputs and achievements;
§ Focus on results and outcomes ‐ communicate the success or shortfalls of the agency’s activities in pursuing government objectives in the reporting year, while accounting for the resources used in the process and explaining changes in performance over time;
§ Discuss results against expectations ‐ provide sufficient information and analysis for the Legislative Assembly and community to make a fully informed judgment on agency’s performance;
§ Clearly identify any changes to structures or functions of the agency in the reporting period;
§ Report on agency financial and operational performance and clearly link this with budgeted priorities and financial projections as set out in annual Budget Estimate Papers and the agency Statement of Intent and Corporate Plan;
§ Provide performance information that is complete and informative, linking costs and results to provide evidence of value for money;
§ Discuss risks and environmental factors affecting the agency’s ability to achieve objectives including any strategies employed to manage these factors, and forecast future needs and expectations;
§ Recognise the diverse needs and backgrounds of stakeholder groups and present information in a manner that is useful to the maximum number of users while maintaining a suitable level of detail; and
§ Comply with legislative reporting requirements including the Annual Reports (Government Agencies) Act 2004 and the Annual Report Directions [15]
2.9 The ACT Auditor-General’s Office audits the annual reports of all reporting entities for compliance with the Directions.[16]
Timing and Presentation of Annual Reports
2.10 The Directions require that: