Report on Universities and TAFE Colleges and other audits ...Part 1: Universities and TAFE Colleges’ Audits 6 1.1 Introduction, analysis and comment on 2003 figures and performance

AUDITOR GENERALfor Western Australia

Serving the Public Interest

Report on Universities and TAFE Colleges

and other audits completed since

November 25, 2003

Report 2June 2004

2 AUDITOR GENERAL FOR WESTERN AUSTRALIA2

AUDITOR GENERALfor Western Australia

THE SPEAKER THE PRESIDENTLEGISLATIVE ASSEMBLY LEGISLATIVE COUNCIL

REPORT ON UNIVERSITIES AND TAFE COLLEGES AND OTHER AUDITS COMPLETED SINCE NOVEMBER 25, 2003

I submit this Report under section 95 of the Financial Administration and Audit Act 1985 (FAAA) covering developments

to May 14, 2004.

This Report summarises the results of the controls, financial statement and performance indicator audits of the four

universities, ten TAFE colleges and seven of their subsidiaries for the year ended December 31, 2003. (The subsidiaries

are not subject to the FAAA and are not required to submit performance indicators.)

This Report also advises Parliament of the progress made to address more significant operational, legislative compliance

and management issues raised with universities and TAFE colleges this year and in prior years.

Results of 20 financial statement and controls and 10 performance indicator audits of agencies with a June 30, 2003

reporting date that were outstanding and not included in Report Ministerial Portfolios at November 25, 2003 (Report

No 10, December 2003), are also reported.

Finally, results are also reported for:

� three half yearly reviews

� one audit opinion on six monthly statements

� one audit opinion on an agency with calendar year reporting requirements

� five audit opinions on final audits

� 32 audit certifications completed in compliance with conditions of Commonwealth funding, grants or other

legislation.

D D R PEARSON

AUDITOR GENERAL

June 2, 2004

3AUDITOR GENERAL FOR WESTERN AUSTRALIA 3

Contents

Executive Summary 4

Part 1: Universities and TAFE Colleges’ Audits 6

1.1 Introduction, analysis and comment on 2003 figures and performance 6

1.2 Results of audits and details of qualified opinions issued for academic year 11

to December 31, 2003

1.3 Other management control issues identified during 2003 14

� quality and timeliness of reporting

� business cycle controls

� information technology controls and progress on issues previously reported

Part 2: Audit Opinions Issued since November 25, 2003 19 for Agencies with June 30, 2003 Reporting Date

Results of audit opinions issued under the FAAA for agencies completed

since November 25, 2003 including audit qualifications and

management control issues

Part 3: Results of Other Audits and Half Yearly Reviews 23

Results of audit opinions issued under the FAAA for six monthly or

annual statements with calendar year reporting and final audits

as well as details of half yearly reviews completed

Part 4: Audit Certifications 25

List of audit certifications completed during 2002-03 reporting cycle

Appendix 1 – Universities’ Key Performance Indicators 28

Appendix 2 – TAFE Colleges’ Key Performance Indicators 29

4 AUDITOR GENERAL FOR WESTERN AUSTRALIA

Key Findings � Curtin University’s financial statements and controls were qualified as effective

reconciliations were not achieved for the university’s student fee debtors balance and bank

account. An opinion could not be formed on whether student fee debtors of $9.9 million,

allowance for doubtful debts of $7.7 million and the General Account Cash Assets of $18.4

million were fairly presented.

� Pilbara TAFE’s controls were qualified as revenue collection and asset controls were

inadequate. As a consequence of the inadequate revenue controls the financial statements

were qualified because an opinion could not be formed on whether revenues from fee for

service $2 073 476, student fees and charges $794 309 and ancillary trading $295 203

were fairly presented.

� Edith Cowan University and Curtin University were four and six weeks late, respectively, in

submitting their certified financial statements and performance indicators.

� All TAFE colleges met the statutory deadline for submitting their certified financial

statements and performance indicators but many contained numerous errors, omissions

and inaccurate supporting notes.

� Ongoing deficiencies in information technology (IT) controls at universities and TAFE

colleges and their failure to implement remedial procedures are leaving their IT systems

and business operations vulnerable.

� The WA Country Health Service received qualified audit opinions on both its financial

statements and performance indicators and currently faces two major financial accountability

challenges:

� overcoming control weaknesses inherited on amalgamation of the health services

� developing performance indicators to report effectiveness of delivery of one of its

outcomes.

Executive Summary

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REPORT ON UNIVERSITIES AND TAFE COLLEGESAND OTHER AUDITS COMPLETED SINCE NOVEMBER 25, 2003

AUDITOR GENERAL FOR WESTERN AUSTRALIA 5

Key Recommendations � Universities and TAFE Colleges generally need to:

� be more focused in discharging their annual reporting obligations with greater

attention to

— preparing and retaining adequate working papers that corroborate reported

items

— assuring integrity and quality of financial statements and performance

indicators

— achieving timely finalisation and certification of financial statements and

performance indicators

� improve controls over computer access and security, infrastructure modifications

and Business Continuity Plans as these ongoing control weaknesses are leaving

their IT systems and business operations vulnerable.

� The WA Country Health Service should resolve the control and performance reporting

weaknesses inherited on amalgamation of the health services as a basis for ongoing

management control and accountability.

KE

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EC

OM

ME

ND

AT

ION

S


� Rate of increase in teaching related expenditure per equivalent full-time student unit at

universities has been 25 per cent for UWA, 10 per cent for Murdoch and five per cent for

Curtin between 1998 and 2003 and seven per cent for Edith Cowan from 1999 to 2003.

� Government funding of TAFE colleges has increased by $79 million (33 per cent) between

2000 and 2003. Over the same period, revenue from fees and charges increased by nine

per cent and fee for services decreased by eight per cent.

1.1 Introduction Audits of Western Australia’s four public universities and 10 TAFE colleges were conducted for

the year ended December 31, 2003. All 14 receive public funds from both the Commonwealth and

State governments.

Universities

� Curtin University of Technology (Curtin)

� Edith Cowan University (ECU)

� Murdoch University (Murdoch)

� The University of Western Australia (UWA)

TAFE Colleges (and their main locations)

� Central TAFE (Northbridge/Mt Lawley/Leederville)

� Central West College of TAFE (Geraldton)

� Challenger TAFE (Fremantle/Rockingham/Murdoch/Peel)

� C Y O’Connor College of TAFE (Northam)

� Great Southern TAFE (Albany)

� Kimberley College of TAFE (Kununurra/Broome)

� Pilbara TAFE (Port Hedland/Karratha). (Commenced January 1, 2003 amalgamating former

Eastern Pilbara and West Pilbara Colleges)

� South West Regional College of TAFE (Bunbury)

� Swan TAFE (Bentley/Thornlie). (Commenced January 1, 2003 amalgamating the former

South East Metropolitan College, Midland College and the Balga Campus of West Coast

College

� West Coast College of TAFE (Joondalup)

Part 1: Universities and TAFE Colleges’ Audits

7AUDITOR GENERAL FOR WESTERN AUSTRALIA


Figures at a Glance for 2003 In 2003, the State Government provided $53.4 million in funding to universities (4.4 per cent of

total revenue) and $303.6 million to colleges (78.1 per cent of total revenue). The Department

of Education and Training advised this includes $83 million in recurrent funding received from

the Australian National Training Authority (ANTA) for TAFE colleges. A further $17.1 million is

also received from the Commonwealth for TAFE capital funding. Table 1 provides a summary of

financial resourcing of these entities in total as taken from their financial statements.

UNIVERSITIES TAFE COLLEGES

Revenue Source $ Million % $ Million %Commonwealth Government 465.9 38.9%State Government (refer above text) 53.4 4.4% 303.6 78.1%Higher Education Schemes (HECS,PELS,BOTPLS*) 202.7 16.9%Student Fees and Charges 245.4 20.5% 26.7 6.9%Consultancies, Research Grants and Other Grants 69.9 5.8%Fee for Service 35.7 9.2%Investment Income 44.6 3.7% 2.5 0.6%Donations and Bequests 6.7 0.6% 0.2 0%Other 110.9 9.2% 20.0 5.2%TOTAL REVENUE $1 199.5 100.0% $388.7 100.0%

ExpenditureEmployee Expenses 691.3 58.7% 237.5 61.5%Depreciation and Amortisation 72.3 6.1% 21.8 5.6%Supplies, Services, Materials and Equipment 249.5 21.2% 86.2 22.3%Buildings and Grounds 38.4 3.3%Scholarships, Grants and Prizes 33.1 2.8% 0.1 0%Grants and Subsidies 15.8 1.3% 1.3 0.3%Borrowing Costs 3.2 0.3% 0.1 0%Bad and Doubtful Debts 8.9 0.8% 0.8 0.2%Capital User Charge 35.9 9.3%Other 65.4 5.5% 2.7 0.7%TOTAL EXPENDITURE $1 177.9 100.0% $386.4 99.9%

Other InformationTotal Assets $2 804m $592mStudent Enrolments – Full-time, Part-time and External # 79 500 80 540

Staff – Full-time Equivalent (FTE) 7 730 3 752

Table 1: Revenue, Expenditure, Asset, Student and Staff information

* Higher Education Contribution Scheme (HECS), Postgraduate Education Loans Scheme (PELS) and

Bridging for Overseas Training Professional Loans Scheme (BOTPLS)

# 2003 Student Enrolments for universities are first half year submission statistics and TAFE 2003

enrolment figures provisional at March 2004

Source: Financial Statements


Universities

WA’s four universities in 2003 managed $2.8 billion in total assets with UWA controlling

$1.25 billion or 45 per cent of this total. UWA also received $38 million (nine per cent of its

revenue) from investments and $3.1 million in donations and bequests.

Universities received $1 199.5 million in revenue with $465.9 million (39 per cent) funded by the

Commonwealth Government. Students directly contributed $1 in every $5 of universities’ revenue

in 2003. If higher education payments are added to this, students are directly and indirectly

contributing 37 per cent, or more than $1 in every $3, of total revenue of the universities. This

shows a slight increase from 2001, where fees and charges comprised 19 per cent and adding

higher education payments then comprised 34 per cent.

Over the last four years, Government financial assistance and higher education scheme revenues

increased by 29 per cent from $559 million in 2000 to $722 million in 2003. Universities’ revenue

from fees and charges increased from $177 million to $245 million, an increase of 38 per cent,

over the same period.

The proportion of expenditure on employee related costs remained relatively constant at around 59

per cent of each university’s annual expenditure for the five years while staffing FTEs increased,

as did student full-time, part-time and external enrolments.

TAFE Colleges

TAFE colleges in 2003 managed $592 million in total assets with half of these assets controlled

by Central TAFE (27 per cent) and Swan TAFE (23 per cent). The 10 colleges received $303.6

million or 78 per cent of their funding from the State Government, including distribution of ANTA

funding.

Support to the colleges from government includes recurrent funds and funding for staff

superannuation, capital works and the capital user charge. In addition, the Department of

Education and Training provides human resources and payroll services, corporate system support,

marketing and publications and other support services to colleges free of charge. The estimated

costs of these services, totalling $10.2 million, are included in each college’s financial statements

to reflect more accurately the full cost of college operations.

Over the last four years, government funding of TAFE colleges increased 34 per cent from $227.3

million in 2000 to $303.6 million in 2003. Over the same period student fees and charges increased

nine per cent from $24.6 million to $26.7 million and fee for service revenue (including contracted

training courses for government and private sector) reduced eight per cent from $38.8 million to

$35.6 million.

PART 1: UNIVERSITIES AND TAFE COLLEGES’ AUDITS (continued)



In 2003, West Coast College collected 30 per cent of its total revenue from fee for services, mostly

from providing literacy and numeracy courses under contract to Commonwealth departments.

Challenger TAFE collected 8.5 per cent, with the other colleges averaging around six per cent of

their total revenue from fee for services.

Although staffing FTE numbers have increased and the costs have increased 16 per cent from

$204.9 million in 2000 to $237.5 million in 2003, the proportion of expenditure on employee

related costs reduced from 67 per cent to 62 per cent of colleges’ total annual expenditure over

the last four years.

Key Performance Indicators Key performance indicators of universities and TAFE colleges include:

� student satisfaction surveys

� percentage of graduates who were employed or proceeded to further study

� ratio of research publications to academic staff

� cost per student or student curriculum hour.

The annual reports of the universities and TAFE colleges provide details and explanations of their

key performance indicators. Detailed operational and financial indicators are also reported to

Commonwealth funding organisations and the Department of Education and Training. Student

and staff statistics and student and graduate survey results are available at www.gradsonline.edu.au

for universities and at www.ncver.edu.au for colleges.

Comparing key performance indicators between entities is problematic because of differences in

the courses offered, student demographics, costs and economic conditions between regions, and

the rating scales for measuring performance. However, trend analysis of performance indicators

within an entity can highlight factors that may deserve explanation or further review.

The use of graduate survey results as key performance indicators provides only part of the picture.

This is highlighted in the Second Public Sector Performance Report 2003 (Report No 7, September

2003) which included results of a performance examination into “Planning and Monitoring

Vocational Education and Training” in Western Australia. This review recognised that students

study for a variety of reasons and some will not complete a full course and not graduate.

Selected key performance indicators for universities and TAFE colleges are included in Appendices

1 and 2 respectively. Some observations from these tables appear below.


Universities

The 2002 graduates surveyed in 2003 at all universities recorded satisfaction with the quality of

their courses at a level equal to or greater than the national average. (Refer Appendix 1 Table A)

The graduate destination survey results are the percentage of university bachelor graduates

seeking employment that are employed in their mode of choice as full-time, part-time or casual

(and not seeking full-time employment). UWA graduates generally indicate higher success in

gaining employment than the national average while ECU and Murdoch graduates have been

consistently below the national average for the last six years.

The rate of increase in the teaching related expenditure per equivalent full-time student unit

(EFTSU) fluctuated over the last six years. Three universities, other than UWA, recorded reductions

in these costs in one or more of the years. UWA’s teaching related expenditure per EFTSU was

the highest of all the universities and over the six years since 1998 has consistently increased

and shown the greatest increase, being 25 per cent based on historical cost data. UWA advised

that this reflects the shift of students into high cost courses and the maintenance of student-staff

ratios at a reasonable level, commensurate with a high quality education. Over the same period

Murdoch’s costs increased 10 per cent and Curtin’s five per cent. Edith Cowan’s costs over five

years from 1999 to 2003 increased seven per cent.

TAFE Colleges

The 2002 graduates surveyed in 2003 from nine of the former 12 colleges recorded greater

than the national average satisfaction level in that they had achieved or partly achieved their

main reason for undertaking the course. This is a similar result to the prior year. In contrast,

the graduate satisfaction rates for Central and West Coast colleges continue to remain below the

national average. (Refer Appendix 2 Table A)

Graduates from seven of the 12 colleges exceeded the national average in relation to being

employed in their desired mode of full-time, part-time or casual employment. Eastern Pilbara,

Kimberley and West Pilbara colleges recorded significantly higher graduate destination results

compared to the national average. Graduate destination results for Central, Great Southern and

Midland colleges were more than four per cent below the national average.

Costs per student curriculum hour (SCH) fluctuated marginally between 1998 and 2003. Four

colleges reported reductions in their historical costs per SCH over the six years. (Refer Appendix

2 Table B) The Perth CPI for education over this period was 21 per cent. However, C Y O’Connor

College of TAFE reported a 19 per cent increase in its costs per SCH between 2001 and 2003,

when its costs, inclusive of the capital user charge, rose from $15.25 to $18.20 per hour.




1.2 Audit Results for Universities and TAFE Colleges � Curtin University’s financial statements and controls were qualified as effective

reconciliations were not achieved for the university’s student fee debtors balance and

bank account. An opinion could not be formed on whether student fee debtors of $9.9

million, allowance for doubtful debts of $7.7 million and the General Account Cash Assets

of $18.4 million were fairly presented.

� Pilbara TAFE’s controls were qualified as revenue collection and asset controls were

inadequate. As a consequence of the inadequate revenue controls the financial statements

were qualified because an opinion could not be formed on whether revenues from fee for

service $2 073 476, student fees and charges $794 309 and ancillary trading $295 203

were fairly presented.

Audit Opinions The audit opinions for financial statements, controls and performance indicators of universities,

TAFE colleges and their subsidiaries for the year ended December 31, 2003 are summarised in

Table 2. The opinions of subsidiaries are given under the Corporations Act and relate to financial

statements only.

Financial Statements

and Controls

Performance Indicators

Date OpinionIssued

UNIVERSITIES AND SUBSIDIARIES

Curtin University of Technology #Curtin Consultancy Services LtdUniservices Kalgoorlie Pty Ltd

Qualification��

�N/A

N/A

13/05/200430/03/200430/03/2004

Edith Cowan University #ECU Resources for Learning Ltd

��

�N/A

30/03/200430/04/2004

Murdoch UniversityMurdoch Retirement Services LtdParagen Pty LtdThe University Company Pty Ltd

��

�N/AN/AN/A

30/03/200430/03/200430/03/200430/03/2004

The University of Western AustraliaAdvanced Powder Technology Pty Ltd (01/07/02 – 30/06/03)

��

�N/A

30/03/200428/01/2004

Continued page 12



and Controls


Date Opinion Issued

TAFE COLLEGES AND SUBSIDIARY

Central TAFEWANMTC Pty Ltd (01/01/2001 – 31/12/2001)(01/01/2002 – 31/12/2002)(01/01/2003 – 31/12/2003)

�

Submitted 30/04/2004Submitted 16/03/2004Submitted 16/03/2004

�

N/AN/AN/A

08/04/2004

Audit in ProgressAudit in ProgressAudit in Progress

Central West College of TAFE � � 08/04/2004

Challenger TAFE � � 08/04/2004

C Y O’Connor College of TAFE � � 02/04/2004

Great Southern TAFE � � 31/03/2004

Kimberley College of TAFE � � 08/04/2004

Pilbara TAFE Qualification � 07/04/2004

South West Regional College of TAFE � � 08/04/2004

Swan TAFE � � 08/04/2004

West Coast College of TAFE � � 08/04/2004

Table 2: Dates and types of opinions

� Denotes an unqualified opinion

# Denotes late submission of financial statements and performance indicators

Source: OAG

The conduct of audit procedures is primarily to form an opinion on the controls and financial

statements and performance indicators prepared by management. Not all matters of significance

may be identified during the course of routine audits. Other matters may be detected during

additional and complementary audit procedures, such as control, compliance and accountability

audits and performance examinations, and are reported separately to Parliament.

It is important to note that management is responsible for keeping proper accounts and maintaining

adequate systems of internal control, preparing and presenting the financial statements, complying

with the FAAA and other relevant written law, and for developing and maintaining proper records

and systems for preparing and presenting relevant and appropriate performance indicators. The

primary responsibility for the detection, investigation and prevention of irregularities rests with

management.

Continued from page 11




Audit Qualifications Two agencies received qualified opinions on controls or financial statements for 2003, compared

with only one issued in the 2002 audit cycle.

Details of the qualified opinions issued and related comments are set out in Table 3.

UNIVERSITY OR TAFE COLLEGE

DETAILS OF QUALIFICATION COMMENTS

Curtin University

Pilbara TAFE

Financial Statements and Controls: An effective reconciliation of student fee debtors to the general ledger was not achieved during the year. In addition, the accuracy and validity of individual student debtors’ balances could not be verified. As a result, an opinion could not be formed on whether the balance of student fee debtors of $9.9 million and allowance for doubtful debts of $7.7 million were fairly presented.

Financial Statements and Controls: The reconciliation process between bank and Curtin’s records was not an effective check to identify and correct any errors. An opinion could not be formed on whether the General Account Cash Assets of $18.4 million were fairly presented.

Financial Statements and Controls: Inadequate controls exercised over receipting and banking of moneys. Sequence checks of receipts were not carried out and as a result a number of missing receipts could not be accounted for. In addition there was a lack of segregation of duties over banking, recording and reconciling revenues. As a result, an opinion could not be formed on whether revenues from Fee for Service $2 073 476, Student Fees and Charges $794 309 and Ancillary Trading $295 203 were fairly presented.

Controls: Inadequate controls exercised over custody of, and accounting for, plant and equipment assets. The asset register was not updated for acquisitions and disposals for the period January to October 2003 and these transactions were not appropriately recorded in the general ledger as they occurred. A stocktake finalised in October 2003 identified significant discrepancies between assets

recorded in the asset register and assets on hand.

Significant action has been taken since July 2003 to resolve this student fee debtors situation and Curtin expects to achieve an effective reconciliation during 2004.

Curtin has taken significant action since December 31, 2003 to identify and clear unmatched items and expects to achieve an effective bank reconciliation during 2004.

Control weaknesses appear to have arisen from non-observance of procedural requirements resulting from staff turnover, with no evidence of fraudulent or criminal conduct being detected at the time of the audit.

The College has indicated that a review will be undertaken following the appointment of permanent finance officers.

In relation to the asset control deficiencies, the College used the October 2003 stocktake and an examination of all asset transactions for the year to update its asset register. Identified stocktake deficiencies are to be written off.

Table 3: Qualified audit opinions and comments

Source: OAG


1.3 Control Issues at Universities and TAFE Colleges � ECU and Curtin were four and six weeks late respectively, in submitting their certified

financial statements and performance indicators.

� All TAFE colleges met the statutory deadline for submitting their certified financial

statements and performance indicators but many contained numerous errors, omissions

and inaccurate supporting notes.

� Ongoing deficiencies in IT controls at universities and TAFE colleges and their failure

to implement remedial procedures are leaving their IT systems and business operations

vulnerable.

� While there has been improvement in IT disaster recovery planning and testing by TAFE

colleges in 2003, the recovery procedures for the key student administration system have

been tested at only one college.

Quality and Timeliness of Reporting Of the 14 academic entities audited, UWA is to be commended for the timely submission of

quality financial statements and performance indicators accompanied by high standard supporting

working papers.

Universities and TAFE colleges generally need to be more focused in discharging their annual

reporting obligations with greater attention to:

� preparing and retaining adequate working papers that corroborate and explain the items

reported

� assuring integrity and quality of financial statements and performance indicators

� achieving timely finalisation and certification of financial statements and performance

indicators.

Universities

The financial statements and performance indicators submitted by the other three universities

required a range of amendments and Curtin and ECU were significantly late, submitting their

certified statements on April 16 and March 29 respectively, well after the February 29 legislative

deadline.

The more significant quality issues were:

� Murdoch’s supporting working papers to its certified statements were incomplete resulting

in some figures that needed to be changed. In addition, the certified performance indicators

were also incomplete as some figures were missing. Both of these problems arose from

Murdoch changing its end of year reporting approach.




� Curtin’s staff did not provide complete working papers to support amounts in the financial

statements, a situation compounded by relevant experienced staff not being available

during the course of the audit due to illness.

� Curtin and ECU incorrectly applied a Commonwealth superannuation contributions’

guideline which resulted in $10.3 million and $5.7 million respectively being wrongly

presented as negative revenue in their draft statements.

TAFE Colleges

Under the FAAA, Governing Councils are required to submit certified financial statements and

performance indicators to the Minister for Education and Training and the Auditor General within

two months of the end of the financial year. The colleges met this timeframe with all financial

statements being submitted to the Auditor General over the last three days of the two month

period.

However, the quality of the financial statements varied. Many contained a number of significant

errors, omissions and presentation inaccuracies in both the financial statements and accompanying

notes. For example, there were:

� inaccurate accounting policy notes

� amounts in the notes that did not agree to amounts on the face of the financial

statements

� incorrect amounts in the financial statements

� reconciliations in the notes that did not reconcile.

Furthermore, in many instances there were inadequate working papers to support the information

in the financial statements. The absence of comprehensive working papers and the high incidence

of errors, omissions and presentation inaccuracies in the certified financial statements caused

delays in finalising the audits. It also resulted in significantly higher and largely avoidable costs to

the colleges and to Audit.

Business Cycle Controls Reviews of the effectiveness of internal controls across the revenue, expenditure, payroll and

asset business cycles at the TAFE colleges identified a number of control deficiencies. Individually

these did not warrant the issue of a qualification. Most appeared to be periodic lapses by staff in

following college procedures, or not carrying out the procedures in a timely manner. However,

management should not be complacent about rectifying these deficiencies as failure to do so

increases the risk and opportunity for fraud.


The more common control deficiencies related to:

� Revenue: Inadequate control over cash collections to ensure that all moneys were receipted

and accounted for. For example, missing receipts were not being followed up and cash

register clearance keys were not being kept in the sole custody of supervisors.

� Expenditure: Payments not being authorised by the correct persons.

� Payroll: Reports not being reviewed and certified on a timely basis. These are critical

controls to ensure employees are correctly paid and the costs are correctly allocated for

financial management purposes.

The identified control deficiencies have been referred to Governing Councils and college

management for corrective action.

Information Technology Controls General information technology (IT) controls at universities and metropolitan colleges are normally

reviewed on a rotational basis over a three year period. In 2003, six areas of general IT controls

were reviewed. IT controls at country colleges are fully reviewed every two years. In 2003, a full

general controls review was undertaken at three of the six country colleges.

The most common IT control issues found at universities and TAFE colleges reviewed were:

� Infrastructure modifications: Any changes to software or configurations of the computing

infrastructure should go through a formal change control process to ensure that only

authorised changes are made. Most universities and colleges had inadequate controls

over modifications to the infrastructure, including to the network, database structures and

operating system software. Common weaknesses were the lack of logging, testing and/or

approving of changes.

� Business Continuity Plans (BCPs) identify the key business services and describe how those

services will be provided in the event of a disruption to computer systems. Most colleges

have not yet developed suitable BCPs.

� Computer access and security controls: Passwords are a key component of access and

security controls, the overall purpose of which is to prevent unauthorised changes and

disclosure or loss of valuable and confidential information. All universities and some

colleges had weaknesses in their password controls including of networks, databases and/

or application systems.




FINDINGS OCCURRENCES AT UNIVERSITIES

% OCCURRENCES AT TAFE COLLEGES

%

Inadequate controls over infrastructure modifications

3 out of 4 75 6 out of 7 86

Inadequate Business Continuity Plans

3 out of 4 75 4 out of 7 57

Inadequate password security 4 out of 4 100 4 out of 7 57

Table 4: Summary of common information technology control findings at universities and TAFE

colleges

Source: OAG

In addition to the control weaknesses identified above, other control deficiencies commonly

identified were:

� absence of periodic review of user access privileges to computer systems to ensure only

current eligible staff have access to the systems

� absence of periodic review of security logs and logs of unsuccessful attempts to access

computer systems to identify any security breaches are identified in a timely manner.

All control deficiencies have been reported to Governing Councils and college management for

corrective action.

Universities and TAFE colleges should improve controls over computer access and security,

infrastructure modifications and Business Continuity Plans at all of their campuses as these

ongoing control weaknesses are leaving their IT systems and business operations vulnerable.

Progress on TAFE Colleges’ Issues Previously Reported Progress by TAFE colleges in addressing issues raised in previous Reports to Parliament on

Universities and TAFE Colleges (Report No 2, August 2002 and Report No 5, August 2003) is as

follows:

Corporate Governance — College Governing Councils

Both the 2002 and 2003 reports identified C Y O’Connor and Kimberley Colleges as operating

for lengthy periods with Interim Governing Councils which should be replaced by Governing

Councils. Governing Councils were appointed for both colleges during 2003.


Disaster Recovery Testing for Computer Systems

For several years Audit has reported that most TAFE colleges have not tested recovery of their

key systems at an alternate site to ensure continuity of operations in the event that a college’s

computing systems were damaged in a fire, storm or other disaster.

In 2002 the Department of Education and Training produced an overall Disaster Recovery Plan

for the recovery of key computer systems for all TAFE colleges. The plan covers three systems,

two of which (financial and human resources) are centrally managed. These two systems were

adequately tested in 2003. However, the third system has not been adequately tested. This is a

decentralised student administration system with each college having its own database. Recovery

testing has been undertaken at only one of the 10 colleges. This level of testing is inadequate and

Audit recommends that the Department also undertake rotational testing of the other sites with

all sites tested within two years. Audit also recommends that the colleges be able to undertake

data restoration independently of central office.


TAFE colleges, together with the Department of Education and Training, have enhanced the

outcomes statements and performance indicators for 2003 reporting. They now relate to the

effectiveness of the services delivered by TAFE colleges and provide more meaningful information

for stakeholders, especially the extent to which the outcomes have been achieved.

The Department has informed Audit that “The Department and colleges will continue to

work together in the ongoing review and refinement of VET based performance management

systems”.

Asset Management

Control weaknesses in asset management at TAFE colleges were reported in both the 2002 and

2003 reports. Some improvement in asset management occurred in 2003. However, further

improvement is still required:

� Asset registers need updating on a timely basis to reflect asset acquisitions, transfers

and disposals. Inaccurate asset registers can cause stocktake discrepancies that require

additional resources to resolve.

� Stocktakes need to be completed on a timely basis and stocktake records need to be signed

by the persons undertaking the stocktakes to establish accountability.

Reviews will be conducted during the 2004 audit cycle to assess the extent to which TAFE colleges

have addressed these asset management issues.




Since the November 25, 2003 cut-off date for the Report on Ministerial Portfolios (Report No 10,

December 2003) a further 20 financial statement and controls audit opinions and 10 performance

indicator audit opinions have been finalised. One agency received qualified opinions on both its

financial statements and performance indicators.

� The WA Country Health Service received qualified audit opinions on both its financial

statements and performance indicators and currently faces two major financial accountability

challenges:

� overcoming control weaknesses inherited on amalgamation of the health services

� developing performance indicators to report effectiveness of delivery of their

Outcome 3 “Quality of life of people with chronic illness and disability.”

� The total number of qualified opinions fell by 45 per cent for agencies with a reporting date

ending June 30, 2003 compared with the same period for 2002:

� five qualified opinions on financial statements and controls were issued in 2003

compared with 16 in 2002. This reduction largely resulted from legislative

amendments which resolved the 2002 qualifications for the nine development

commissions

� seven qualified opinions on performance indicators were issued compared to six in

2002.

Audit Opinions Results of the financial statement and performance indicator audits for the 2003 audit cycle issued

since November 25, 2003 are summarised in Table 5. Unless otherwise noted, audit opinions

issued relate to the reporting period July 1, 2002 to June 30, 2003. Performance indicators are

only required for agencies reporting under the FAAA. These opinions are issued on the same date

as the financial statement opinions.

Three of these residual audits relate to agencies that had submitted their financial statements and

performance indicators late and a further 10 were for a subsidiary, cemetery boards and request

audits that do not have a specified deadline for submission. It is difficult to schedule resources for

these audits because of the unknown date the financial statements will be received for auditing.

As a result, the audits were not completed in time for inclusion in the December 2003 report.

Part 2: Audit Opinions Issued Since November 25, 2003 for Agencies with June 30, 2003 Reporting Date



and Controls

Performance Indicators (1)

Date OpinionIssued

STATUTORY AUTHORITIES

Animal Resources Authority � � 01/12/2003

Botanic Gardens and Parks Authority � � 16/12/2003

Local Health Authorities Analytical Committee � � 30/01/2004

Office of Health Review � � 01/12/2003

Potato Marketing Corporation of Western AustraliaSubsidiary: Fresh Western Pty Ltd (01/07/02 to 30/06/03)

�

�

�N/A

16/12/2003

Rural Business Development Corporation � � 01/12/2003

State Supply Commission � � 04/12/2003

WA Country Health Service Qualification Qualification 01/12/2003

Western Australian Centre for Pathology and Medical Research

� � 01/12/2003

Western Australian Meat Industry Authority � � 01/12/2003

CEMETERY BOARDS

Chowerup Cemetery Board � N/A 06/02/2004

Kalgoorlie-Boulder Cemetery Board � N/A 05/12/2003

Upper Preston-Lowden Cemetery Board (01/07/00-30/06/01)

� N/A 08/03/2004


� N/A 08/03/2004


� N/A 08/03/2004

REQUEST AUDITS

Beverley Frail Aged Lodge (Inc.) (3 years ending 30/06/01, 30/06/02 and 30/06/03)

Not Submitted

Consolidated Financial Statements for the State of Western Australia

� N/A 08/12/2003

Foundation for Advanced Medical Research Inc � N/A 30/01/2004

Friends of the KEMH Inc � N/A 30/01/2004

South West Cogeneration Joint Venture � N/A 19/12/2003



(1) The opinions of subsidiaries are given pursuant to the Corporations Act and relate to financial

statements only

Source: OAG

PART 2: AUDIT OPINIONS ISSUED SINCE NOVEMBER 25, 2003 FOR AGENCIES WITH JUNE 30, 2003 REPORTING DATE (continued)



Audit Qualifications — WA Country Health Service The financial statements were qualified because the $363 million reported as land and buildings

was brought to account at a mixture of cost, valuation and fair value. This is contrary to the

requirements of Urgent Issues Group Abstract 40 issued by the Australian Accounting Standards

Board, which requires transferred assets to be recognised at fair value at the date of acquisition.

The WA Country Health Service is currently in the process of revaluing all land and buildings to

enable fair value to be determined.

Key effectiveness indicators for Outcome 3 “Quality of life of people with chronic illness and

disability”, involving expenditure of $29.5 million, were qualified as they did not measure

achievement of the outcome. The indicators should be reporting how the operations of the WA

Country Health Service have impacted on the quality of life of people with chronic illness and

disability.

The WA Country Health Service in conjunction with the Department of Health is currently

reviewing these indicators in order to address this issue.

Management Control Issues

WA Country Health Service Control weaknesses were raised with management relating to expenditure, bank reconciliations,

asset management, information system controls and financial reporting. Many of these issues

remain outstanding from prior years when they were raised with individual health services prior to

the amalgamation. Although not warranting a qualified opinion, without appropriate management

controls, the exposure to losses through errors, unauthorised transactions or fraud are greatly

increased. In order to improve internal control in these areas, management needs to:

� Expenditure: Improve training and management oversight to ensure payments are

appropriately authorised and improve security over passwords used to release payments

through the online facility.

� Bank Reconciliations: Perform regular bank reconciliations and ensure an appropriate level

of review of reconciliations is completed.

� Asset Management: Develop and maintain a register of attractive and portable items.

Ensure asset transfer and disposal forms are completed, asset registers are updated and

regular stocktakes are conducted. Reconciliations between the asset register and general

ledger should also be conducted at appropriate intervals to support the accuracy of the

amounts presented in the financial statements. Furthermore, depreciation rates and

established useful lives need to be reviewed in conjunction with the Department of Health

to achieve sector wide consistency.


� Information System Controls: Improve security, back up and disaster recovery

arrangements to prevent unauthorised access to information systems and ensure continuity

of operations.

� Financial Reporting: Implement a robust quality review process and timely year end

procedures to ensure working papers support the financial statements and accompanying

notes.

The WA Country Health Service should resolve the control weaknesses inherited on amalgamation

of the health services as a basis for ongoing management control and accountability.

Health Sector - Further Development of Performance Indicators The Report on Ministerial Portfolios at November 25, 2003 (Report No 10) advised that the

Department of Health was currently reviewing all health sector performance indicators. This

includes the effectiveness performance indicators for Outcome 3 “Improvement in the quality

of life of people with chronic illness and disability” and the reporting format for the indicator

measuring the impact of waiting times for elective surgery on the “restoration” outcome.

In addition, Audit recommends that a quality review process be implemented for the 2003-04

period to assist with the preparation of performance indicators in the health sector, including WA

Country Health Service. This review needs to provide assurance that:

� costs are consistently allocated for financial and performance reporting purposes and the

basis of the allocation is fully documented to ensure consistency across all regions and

agencies within the health sector

� supporting working papers for all information reported in the performance indicators are

maintained and any variances between local and centrally maintained information are fully

investigated and documented before compiling the final performance indicators.

PART 2: AUDIT OPINIONS ISSUED SINCE NOVEMBER 25, 2003 FOR AGENCIES WITH JUNE 30, 2003 REPORTING DATE (continued)



Audit Opinions Unqualified financial statement, controls and performance indicator audits were issued for two

agencies, other than academic entities that have a reporting date of December 31, 2003. One

agency has not submitted financial statements and performance indicators for audit. In addition,

five final audits were completed. Four were agencies that have been amalgamated into newly

formed agencies and the Office of Water Regulations’ functions have transferred to existing

agencies. (Refer Table 6)

Financial Statement

and Controls

Performance

Indicators

Date Opinion Issued

Six Monthly Audit (01/07/03 - 31/12/03)

Legal Contributions Trust � � 31/03/2004

Calendar Year Audits (01/01/03 - 31/12/03)

Anzac Day Trust

Professional Standards Council � � 11/02/2004

Not Submitted

Final Audits

Betting Control Board (Final Audit 01/08/03 - 29/01/04)

Office of Water Regulation (Final Audit 01/07/03 - 31/12/03)

Totalisator Agency Board (Final Audit 01/08/03 - 29/01/04)

Western Australian Independent Gas Pipelines Access Regulator (Final Audit 01/07/03 - 31/12/03)

Western Australian Independent Rail Access Regulator (Final Audit 01/07/03 - 31/12/03)

�

�

�

�

�

�

�

�

Not Required

Not Required

07/04/2004

23/04/2004

15/04/2004

29/04/2004

29/04/2004



Source: OAG

Part 3: Results of Other Audits and Half Yearly Reviews


Half Yearly Review Results Unqualified auditor’s statements were issued for the half yearly review of three agencies’ financial

statements for the six months ended December 31, 2003. (Refer Table 7)

The review of Keystart Bonds Limited is required under the Corporations Act 2001. The reviews

of Water Corporation and Western Power are performed at the request of the Boards of these

corporatised entities to mirror corporations law requirements.

The procedures performed during a review are limited primarily to inquiries of company or

corporation personnel and analytical procedures applied to the financial data. A review therefore

does not provide all the evidence that would be required in an audit.


Date Issued

Keystart Bonds Limited � 24/02/2004

Water Corporation � 22/03/2004

Western Power Corporation � 23/01/2004

Table 7: Dates and results of half yearly reviews

� Denotes an unqualified auditor’s statement

Source: OAG

PART 3: RESULTS OF OTHER AUDITS AND HALF YEARLY REVIEWS (continued)



Audit work is also undertaken throughout the year to certify financial and statistical information

produced by departments and statutory authorities. This assists agencies to discharge conditions

of Commonwealth funding, grants or other legislation. This service to agencies ensures that they

meet conditions of their funding agreements in a timely manner and are in a position to receive

ongoing funding or apply for future funding under existing or new agreements.

The following certifications were completed for activities largely occurring during the 2002-03

reporting cycle. In all cases managements’ assertions were confirmed and no adverse reports

were issued.

CLIENT CERTIFICATION RELATES TO DATE ISSUED

Combined Universities Centre for Rural Health

Combined Universities Centre for Rural Health, Geraldton: Financial statement for grant received from Commonwealth Department of Health and Aged Care for year ended 30/06/2003

17/10/2003

Commissioner of Main Roads

Australian Land Transport Development Act 1988: Statement of amounts expended or set aside for road upkeep and maintenance expenditure at 30/06/2003

22/12/2003

Commissioner of Main Roads

Interstate Road Transport Act 1985: Statement of amounts expended or set aside for road upkeep and maintenance expenditure at 30/06/2003

22/12/2003

Commonwealth Department of Transport and Regional Services

Indian Ocean Territories Service Delivery Arrangements: Extracts of audited financial statements at 30/06/2003 of 20 State government agencies as they relate to the Arrangement

19/01/2004

Curtin University of Technology

Higher Education Funding Act 1988: Total amount of research income reported as: Australian competitive research grants; other public sector research funding; and industry and other funding for research for year ended 31/12/2002

08/07/2003

Department of Agriculture

FARMBIS 2 Program and Rural Adjustment Act 1992: Farm Business Improvement Program 2 financial return for year ended 30/06/2003

11/12/2003

Department of Culture and the Arts and ArtsWA

ArtsWA Regional Development Trust Fund: Trust fund’s annual income and expenditure statement at 30/06/2003 for submission to the Department of Local Government and Regional Development as part of the formal acquittal process for their financial support for regional development projects

20/01/2004

Part 4: Audit Certifications

continued page 26



Department of Education and Training

Australian Vocational Education and Training (VET) Management Informaiton Statistical Standard:

- Assessment of 2002 Australian national Training Authority scope and boundary expenditure during 2002

- Summary of Australian VET management information statistical standard for VET financial data during 2002

23/07/2003

and

23/07/2003


Indigenous Education Strategic Initiatives Program (IESIP): IESIP supplementary recurrent assistance and national indigenous English literacy and numeracy strategy to 31/12/2002

13/05/2003


Western Australian Department of Education and Training - Commonwealth sourced VET Funds: Statement of receipts and payment for year ended 31/12/2002 for Commonwealth sourced vocational education and training (VET) funds through Australian National Training Authority

29/08/2003

Department of Health Australian Health Care Agreement (1998-2003):

- Public hospital funding data at June 30 for five years 1998-99 to 2002-03 as precondition for signing new five year agreement (2002-03 estimated data)

- Actual 2002-03 public hospital funding data

27/08/2003and22/12/2003

Department of Housing and Works

Commonwealth State Housing Agreement 1999: Financial statements on use of housing assistance assets and funds for year ended 30/06/2003

23/12/2003

Department of Local Government and Regional Development

Local Government (Financial Assistance) Act 1995: Statements of quarterly payments by State of Western Australia to local government authorities of Commonwealth funding to 30/06/2003

24/09/2003

Disability Services Commission

Commonwealth State Disability Service Agreement: Acquittal of revenue and expenditure for jurisdiction of Western Australia for year ended 30/06/2003

08/12/2003

Edith Cowan University


27/06/2003

Family Court of Western Australia

Family Law Act 1975: Statements of receipts and payments for three years ending 30/06/2001, 2002 and 2003

15/08/2003

PART 4: AUDIT CERTIFICATIONS (continued)

continued from page 25

continued page 27



Fire and Emergency Services Authority

Natural Disaster Relief Arrangements: Claim by State of WA for assistance in respect of its budget for outlay during the year ended 30/06/2003

14/11/2003

Murdoch University Higher Education Funding Act 1988: Total amount of research income reported as: Australian competitive research grants; other public sector research funding; and industry and other funding for research for year ended 31/12/2002

25/06/2003

Ngala (Inc) Sleep on Satellite Project: Financial report from 01/07/03 until funding ceased on 17/02/2004 audited under funding agreement terms with Commonwealth Department of Family and Community Services

10/03/2004

Rural Business Development Corporation

Rural Adjustment Scheme 1985-88 and 1992: Rural Adjustment Scheme financial return for year ended 30/06/2003

11/12/2003

The University of Western Australia

Federal Family Education Loan (FFEL) Program: Compliance with United States Department of Education requirements for US students studying at foreign universities receiving FFEL funding for three years ending 31/12/2000 to 31/12/2002

20/01/2004

The University of Western Australia


25/06/2003

Western Australian Centre for Remote and Rural Medicine

Western Australian Centre for Remote and Rural Medicine (WACRRM): Summary of WACRRM program expenditure 01/07/2002 to 30/06/2003 and statement of receipts and payments for WACRRM’s Rural Workforce Agency activities

25/09/2003

Western Australian Electoral Commission

Electoral Distribution Act 1947: Financial statements of Electoral Distribution Commissioners’ Expenses for periods 21/05/2002 to 06/06/2003 and 07/06/2003 to 16/03/2004

17/06/2003and06/05/2004

Western Power Electricity Corporation Act 1994: Issue of an independent audit report for the year ended June 30, 2003 on each of the special purpose financial reports for:

- South West Electricity Distribution System- South West Electricity Transmission System- North West Electricity Distribution System- North West Electricity Transmission System- Regional Electricity Distribution System

20/02/200420/02/200420/02/200420/02/200420/02/2004

Table 8: Certifications issued

Source: OAG

continued from page 26



Graduate Satisfaction and Graduate Destination are measured as part of a national survey of all

university undergraduate students (Australian citizens and permanent residents) in the year after

they complete their studies.

� Graduate Satisfaction measures the percentage of bachelor degree graduates that were

broadly satisfied with the quality of their course.

� Graduate Destination represents the percentage of bachelor degree graduates seeking

work who were employed in their mode of choice. Most were employed full-time while

others chose to work part-time or casual and were not seeking full-time employment at the

time of the surveys.

The national averages were provided by the Graduate Careers Council of Australia from data

collected during surveys of university graduates each year in April and October. The graduate

destination figures vary slightly from those presented in previous years’ reports and are now

comparable with the percentages provided by the universities. Further survey results are presented

on their website at www.gradsonline.edu.au.

Teaching Related Expenditure per EFTSU (Equivalent Full-Time Student Unit) is calculated by

dividing the number of equivalent full-time undergraduate students into the total expenditure on

teaching related activities. (Dollars are not indexed across years to give standard dollar values.)

UNIVERSITIES 1998 1999 2000 2001 2002 2003NATIONAL AVERAGESGraduate Satisfaction (% satisfied) 90% 89% 89% 89% 89% 90%

Graduate Destination (% employed) 81% 82% 84% 84% 82% 81%

CURTIN Graduate Satisfaction (% satisfied) 90% 91% 90% 88% 93% 91%


Teaching Related Expenditure per EFTSU $13 444 $12 214 $14 118 $15 110 $14 389 $14 105

EDITH COWAN Graduate Satisfaction (% satisfied) 88% 87% 90% 88% 89% 90%


Teaching Related Expenditure per EFTSU N/A $10 833 $10 649 $10 961 $11 197 $11 614

MURDOCH Graduate Satisfaction (% satisfied) N/A 91% 92% 93% 93% 92%



UWAGraduate Satisfaction (% satisfied) 88% 89% 90% 91% 90% 92%



Table A: Selected Audited Key Performance Indicators for Universities – 1998 to 2003

Source: National Averages — Graduate Careers Council of AustraliaUniversities — Audited performance indicators for 2003

APPENDIX 1: UNIVERSITIES’ KEY PERFORMANCE INDICATORS



Graduate Satisfaction and Graduate Destination are measured as part of a national survey of all

college graduates in the year after they complete their studies. The National Centre for Vocational

Education Research (NCVER) conducts the surveys and the results appear on their website at

www.ncver.edu.au.

� Graduate Satisfaction measures the percentage of graduates that had achieved or partly

achieved their main reason for undertaking the course.

� Graduate Destination measures the percentage of graduates who were employed in their

desired mode of employment (full-time, part-time or casual) at the time of the surveys.

GRADUATE SATISFACTION (% Satisfied) 1998 1999 2000 2001 2002 2003WESTERN AUSTRALIAN AVERAGE 81% 82% 79% 76% 77% 77%NATIONAL AVERAGE 80% 80% 80% 79% 78% 78%Central 81% 78% 76% 73% 74% 71%Central West 81% 80% 77% 75% 80% 80%Challenger 80% 80% 80% 78% 81% 80%C Y O’Connor (1) N/A N/A N/A 78% 84% 85%Eastern Pilbara (2) 90% 89% 88% 88% 90% 86%Great Southern 76% 82% 79% 75% 77% 81%Kimberley (1) N/A N/A 78% 85% 87% 84%Midland (2) 84% 82% 81% 78% 82% 79%South East Metropolitan (2) 86% 88% 82% 79% 77% 77%South West Regional 78% 81% 79% 78% 76% 80%West Coast 81% 84% 77% 76% 75% 74%West Pilbara (2) 84% 88% 83% 84% 86% 83%GRADUATE DESTINATION (% Employed) 1998 1999 2000 2001 2002 2003WESTERN AUSTRALIAN AVERAGE 72% 71% 73% 68% 72% 73%NATIONAL AVERAGE 73% 73% 76% 73% 73% 74%Central 70% 70% 71% 65% 71% 69%Central West 70% 68% 68% 69% 71% 73%Challenger 70% 70% 69% 64% 65% 72%C Y O’Connor (1) N/A N/A N/A 76% 80% 77%Eastern Pilbara (2) 78% 89% 82% 84% 95% 83%Great Southern 63% 62% 76% 68% 71% 70%Kimberley (1) N/A N/A 86% 86% 91% 86%Midland (2) 72% 66% 69% 66% 61% 65%South East Metropolitan (2) 85% 82% 76% 71% 73% 77%South West Regional 72% 75% 74% 72% 75% 77%West Coast 72% 68% 74% 67% 69% 74%West Pilbara (2) 68% 81% 92% 90% 88% 88%

Table A: Graduate Satisfaction and Destination Performance Indicators for Colleges — 1998 to

2003

(1) Indicators for C Y O’Connor and Kimberley Colleges are only listed for periods after they became

statutory authorities

(2) Surveys in 2003 were for 2002 graduates from these former colleges, before amalgamations

Source: Audited performance indicators for 2003

APPENDIX 2: TAFE COLLEGES’ KEY PERFORMANCE INDICATORS


NOTE: The 2003 NCVER national and state averages are based on a revised definition of graduate.

The NCVER has stated that “At the aggregate level, this makes no difference”. For the purposes

of Table 1, previous years’ national and state figures have not been adjusted so as to maintain

comparability with the published results of the individual colleges.

Cost per SCH (Student Curriculum Hour) is calculated by dividing the total Cost of Services by the

total SCH delivered. In addition, to maintain comparability, the effect of the capital user charge

(CUC), introduced on July 1, 2001, has been included from July 2001 in a separate entry per

College.

Many factors influence these cost indicators, such as regional location and economic conditions,

courses offered and student demographics, so this data alone should not be used for comparisons

between colleges.

COST PER SCH (Student Curriculum Hours)

1998 1999 2000 2001 2002 2003

Central $10.47 $10.39 $9.96 $10.77 $10.13Including CUC $11.51 $11.51 $11.58

Central West $15.48 $15.34 $15.47 $17.21 $17.26Including CUC $18.10 $19.17 $18.62

Challenger $13.17 $12.85 $12.56 $11.50 $11.57Including CUC $12.09 $12.76 $13.53

C Y O’Connor (1) N/A N/A N/A $14.71 $15.46 Including CUC $15.25 $16.53 $18.20

Great Southern $12.70 $11.45 $12.48 $12.12 $12.06Including CUC $12.65 $13.24 $13.60

Kimberley (1) N/A N/A $25.45 $27.78 $26.69Including CUC $29.04 $29.01 $30.13

Pilbara (2) Including CUC N/A N/A N/A N/A N/A $44.13Eastern Pilbara $29.23 $31.43 $34.92 $32.66 $33.44 N/A

Including CUC $34.87 $38.91 N/AWest Pilbara $31.75 $30.79 $34.93 $30.44 $38.69 N/A

Including CUC $32.08 $42.82 N/ASouth West Regional $11.79 $11.22 $11.60 $11.65 $11.18

Including CUC $12.23 $12.27 $13.15Swan (2) Including CUC N/A N/A N/A N/A N/A $12.78Midland $11.85 $11.12 $11.34 $10.80 $11.02 N/A

Including CUC $11.81 $12.25 N/ASouth East Metropolitan $11.70 $11.50 $11.82 $11.94 $12.28 N/A

Including CUC $12.46 $13.34 N/AWest Coast (2) $10.53 $11.47 $11.09 $10.55 $11.40

Including CUC $11.01 $12.40 $12.03

Table B: Cost per Student Curriculum Hour for Colleges – 1998 to 2003

(1) Indicators for C Y O’Connor and Kimberley Colleges are only listed for periods after they became

statutory authorities

(2) Pilbara and Swan Colleges are shown as amalgamated from January 1, 2003. Comparative data for

West Coast College for the transfer of Balga campus to Swan College has not been adjusted

Source: Audited performance indicators for 2003

APPENDIX 2: TAFE COLLEGES’ KEY PERFORMANCE INDICATORS (continued)


Previous Reports of the Auditor General

2000Public Sector Performance Report 2000 – Emerging Issues – Management Control Issues April 5, 2000

Report on the Western Australian Public Health Sector and of

Other Ministerial Portfolio Agencies for 1999 April 5, 2000

A Means to an End – Contracting Not-For-Profit Organisations

for the Delivery of Community Services June 14, 2000

Private Care for Public Patients – A Follow-on Examination of the

Joondalup Health Campus Contract June 21, 2000

Report on Western Australian Public Universities and TAFE Colleges

– 1999 Annual Reporting Cycle June 21, 2000

Bus Reform: Further down the road – A follow-on examination into

competition reform of Transperth bus services June 28, 2000

Surrender Arms? – Firearm Management in Western Australia September 13, 2000

Second Public Sector Performance Report 2000 – Administration of Legislation

– Financial and Management Control Issues October 11, 2000

A Tough Assignment – Teacher Placements in Government Schools October 18, 2000

Report on Ministerial Portfolio at December 1, 2000 – Summary of Audit Results

– Accountability Issues (Corporate Governance, Accounting for GST Transitional Loan) December 20, 2000

2001Sale of the Gas Corporation’s Businesses (Special Report) February 14, 2001

On-line and Length? – Provision and Use of Learning Technologies in Government schools May 23, 2001

Implementing and Managing Community Based Sentences May 30, 2001

Public Sector Performance Report, 2001 – Administration of Legislation

–– Financial and Management Control Issues – Follow-up Examination June 20, 2001

Report on Public Universities and TAFE Colleges – 2000 annual reporting cycle June 20, 2001

Lifting the Rating: Stroke Management in Western Australia August 22, 2001

Good Housekeeping: Facilities Management of Government Property and Buildings August 29, 2001

Second Public Sector Performance Report 2001 – Management , Compliance and Control Issues

– Follow-up Performance Examinations September 19, 2001

Righting the Wrongs: Complaints Management in the Western Australian Public Sector October 17, 2001

Third Public Sector Performance Report 2001 – Appointment and Use of Contract Staff

– Management of Mobile Phones in Government – Ombudsman’s Statistics and

ComplaintsAutomated Register Project – The Perth Convention Centre November 7, 2001

Life Matters: Management of Deliberate Self-Harm in Young People November 28, 2001

First Byte: Consortium IT Contracting in the Western Australian Public Sector December 5, 2001

Report on Ministerial Portfolios at November 30, 2001 – Summary of Audit Results

– Accounting and Contemporary Issues – Summary Results of Agency Audits December 19, 2001


2002Level Pegging: Managing Mineral Titles in Western Australia June 19, 2002

Report on Public Universities and TAFE Colleges and of other Ministerial Portfolio Agencies for 2001 August 14, 2002

A Critical Resource: Nursing Shortages and the Use of Agency Nurses August 14, 2002

Public Sector Performance Report 2002 – Agency Management of Fringe Benefits Tax

– Common Use Contracts in Government – Procurement of Medical Equipment

– Follow-up Performance Examination September 25, 2002

A Measure of Protection: Management and Effectiveness of Restraining Orders October 16, 2002

Grounds for Improvement: Government Owned or Controlled Contaminated Sites November 13, 2002

Management of Hospital Special Purpose Accounts November 27, 2002

Second Public Sector Performance Report 2002 – Management of Confidential

Personal Information in Government Electronic Databases – Management of Intellectual Property

by the Department of Agriculture – Performance Examination: Family Centres December 4, 2002

Report on Ministerial Portfolios at November 29, 2002 December 11, 2002

2003Customer Calling: Call Centres and the Delivery of Customer Benefits April 2, 2003

Contracting Not-For-Profit Organisations for Delivery of Health Services April 16, 2003

Supplementary Report on Ministerial Portfolio Agency Audits for 2001-02,

primarily the Public Health Sector June 11, 2003

Public Sector Performance Report – Management of Marine Safety

and Seas Search and Rescue – Regulation of the Taxi Industry a

nd Small Charter Vehicles – Security of the Government Internet Gateway June 25, 2003

Report on Public Universities and TAFE Colleges for 2002 August 13, 2003

Balancing Act: The Leasing of Government Assets September 17, 2003

Second Public Sector Performance Report 2003– Management of Water Resources

in Western Australia – Regulation of Gamingand Wagering in Western Australia

– Planning and Monitoring Vocational Educationand Training in Western Australia September 24, 2003

A Roof Over Our Heads: Maintenance of Public Housing October 29, 2003

Turning the Tide: The Business Sustainability of the Rottnest Island Authority November 26, 2003

Report on Ministerial Portfolios at November 25, 2003 December 3, 2003

Patients Waiting: Access to Elective Surgery in Western Australia December 9, 2003

2004Public Sector Performance Report 2004 – Investigation of Breaches of Industrial Laws

– The Regulation of Human Organ and Tissue Removal – Computer Anti-Virus Management

– Internal Audit in Government Agencies – Management of Tree Plantations

– Follow-Up Performance Examination: Surrender Arms? May 5, 2004

The above reports can be accessed on the Office of the Auditor General’s website at www.audit.wa.gov.au/

On request these reports may be made available in an alternative format for those with visual impairment.

PREVIOUS REPORTS OF THE AUDITOR GENERAL (continued)

Documents

Report on Universities and TAFE Colleges and other audits ...Part 1: Universities and TAFE Colleges’ Audits 6 1.1 Introduction, analysis and comment on 2003 figures and performance