Vocational and Higher Education 2017 ANNUAL REPORT · Chair, Ms Catherine Walsh This committee oversees all people-related activities at Holmesglen. It also ensures proper governance,

Vocational and Higher Education

2017 ANNUAL REPORT

© Tim Jones

Above, Blasted Red Tree, 2007 bronze, stainless steel, pigment 370 x 260 x 140 cm

Report of Operations

04 Introduction

05 Board Chair’s Report

05 Chief Executive’s Report

06 Strategic Intent

07 Organisational Chart

08 Board

09 Controlled Entities

09 Executive

10 Key Initiatives and Projects

11 Australian Commercial Activities

12 Overseas Operations

13 Awards and Achievements

14 2017 Holmesglen Awards Festival

14 Holmesglen Foundation

15 Financial Overview

16 Compliance

21 Workforce

24 Environmental Performance

Financial Report

29 Independent Auditor’s Report - Financial Report

31 Declaration by Board Chair

33 Comprehensive Operating Statement

34 Balance Sheet

35 Statement of Changes in Equity

36 Cash Flow Statement

37 Notes to Financial Statements

79 Independent Auditor’s Report - Statement of Performance

82 Statement of Performance

83 Disclosure Index

HOLMESGLENANNUAL REPORT 2017 CONTENTS

4 | Annual Report 2017

About Holmesglen

Holmesglen opened in 1982 to provide general technical and further education programs for the community, and basic training for the building and construction trades.

Today, we deliver a broad range of senior-secondary, vocational education and training, and higher education programs – on campus, online, in workplaces and at partner institutions in Australia and overseas.

Holmesglen serves Victorian communities and industry from six locations across metro Melbourne. We also have a rural learning centre in north-eastern Victoria. In 2017, we welcomed over 3,000 international learners to study in Melbourne.

We also deliver education and training services with educational and industry partners in China, Mongolia, Indonesia and Qatar.

Holmesglen is established under the Education and Training Reform Act 2006. During 2017, the responsible Minister for Training and Skills was the Hon. Gayle Tierney MP.

Operations in 2017

In 2017, we developed our latest strategic plan, Vision 2020. This new vision sets an ambitious growth agenda that will see Holmesglen become a leading tertiary provider of the twenty-first century.

This year we also extended our business development and applied research activities – and formed new partnerships with education providers, industry groups and employers.

Furthermore, we continued to support our learners through programs and initiatives, and saw increased community engagement from both learners and staff.

ON BEHALF OF THE BOARD AND INSTITUTE, WE ARE PLEASED TO PRESENT THE 2017 ANNUAL REPORT FOR HOLMESGLEN INSTITUTE. THIS REPORT OF OPERATIONS OUTLINES OUR ACTIVITIES, ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR, AND PRESENTS THE REQUIRED COMPLIANCE STATEMENTS.

Peter LewinskyChairHolmesglen Institute21 March 2018

Mary FaraoneChief ExecutiveHolmesglen Institute21 March 2018

Holmesglen Institute | 5

I am pleased to report that the Institute continues to perform well in an often difficult market. However, we do recognise the ongoing support for the TAFE sector from the Victorian Government and the Minister for Training and Skills.

In 2014, the Institute began a three-year agenda to rethink, realign and refocus the organisation. This enhanced our performance on a number of key indicators throughout 2015 and 2016.

Our 2017 results show that we have maintained our sector-leading position for financial sustainability and innovation, which gives the Board the capacity to re-invest in the organisation.

This year we embarked on a major upgrade to our ICT infrastructure and committed to funding a range of strategic and capability-building initiatives. The Board also supported the Holmesglen Foundation’s new focus on advancement activities to benefit our learners, staff and local communities.

The Board’s composition remained relatively stable in 2017. Mr Bruce Porter was re-appointed and Mr Michael Gorton was appointed following the resignation of Mr Jim Grant.

I thank all Directors for their commitment and contributions to Holmesglen. I am confident that the Board will continue to operate collaboratively and in the best interests of the Institute, community and Victorian Government.

Thank you also to Chief Executive Mary Faraone, the executive team and staff for their excellent work and achievements in 2017.

I look forward to working with my Board colleagues, management and staff in 2018, as we embark on Vision 2020.

BOARD CHAIR’S REPORTPETER LEWINSKY

I am pleased to report that the Institute improved its performance this year across a number of financial and non-financial indicators.

This year we ended in a stronger financial position than in 2015 and 2016, with an increased net result from transactions, and net result. Training revenue and higher education enrolments also increased compared to 2016. However, the domestic VET market is still challenging. Victorian Government subsidised student numbers remained stable in 2017.

A key achievement in 2017 was receiving two Australian training awards – the International Training Provider of the Year and the Industry Collaboration award. The Institute is well-known for its contribution to the international education sector and its commercial partnerships, and these accolades endorse our leadership in these areas.

Other key achievements included:• Development and endorsement of our Vision 2020

Strategic Plan which sets a transformative agenda for the organisation over the next three years

• Completion of the first stage of the ICT Strategy 2017-2020 to refresh our ICT infrastructure

• The opening of Holmesglen Private Hospital and new learner hub at the Moorabbin campus

• Launch of a staff recognition program with commemorative pins awarded to staff with 15, 20 and 30 years of service

• Continued upward trend on module load completion rates

• Improved People Matter Survey results, with staff satisfaction rising six percentage points from 2016

• Decreased health and safety incidents, particularly student-related incidents in the trade areas

• The second consecutive gold win for Holmesglen at Eildon at the RACV Victorian Tourism Awards

• Increased staff and student engagement in community development activities, including the Holmesglen Run for Change

• Introduction of a new executive portfolio structure that has seen greater collaboration across the Institute

We are proud of our achievements in 2017 and thankful for the continued support of the Victorian Government and Minister for Training and Skills, the Hon. Gayle Tierney MP.

I wish to pay tribute to the work of the executive and leadership teams and all Holmesglen staff who have contributed to our success.

My thanks to the Board, and in particular the Chair, for their support and advice in 2017.

CHIEF EXECUTIVE’S REPORT MARY FARAONE



STRATEGIC INTENT

Holmesglen provides education and training to enable our learners to be work ready, life ready and world ready.

We play an integral role in the community, supporting social inclusion and cohesion. We work with businesses to develop the workforce of today and tomorrow.

Holmesglen is a leading tertiary provider of the twenty-first century, valued by local and international learners, industry and the community.

We are recognised for innovation in education and training, applied research, creativity and entrepreneurship. Our open, collaborative and quality-driven culture inspires learners and staff to excel.

Our vision is driven by five goals:

1. Differentiate Holmesglen

2. Create a distinctive Holmesglen Experience (HX)

3. Invest in Holmesglen’s capability and capacity

4. Build the ecosystem to connect with industry and the community

5. Grow sustainable revenue

AMBITION

SCHOLARSHIP

PASSION

INTEGRITY

RESPECT

EXCELLENCE


OUR VISION 2020

OUR ASPIRE VALUES

OBJECTIVES


ORGANISATIONAL CHART

Audit Committee

Asset and Infrastructure

Committee

Higher Education Academic Committee

Remuneration Committee

Investment Committee

Mary FaraoneChief Executive

David Saunders

Executive Director, International Education

and Business Development

Enzo Spangher

Executive Director, Infrastructure

and Asset Management

Suzanne McKinnon

Executive Director, Engagement and

Support

Joanne James

Chief Financial Officer

Board

Board Committees and Executive team as at 31 December 2017

Leone English

Executive Director, Education and

Applied Research

Bruce Prescott

Executive Director, Workforce,

Performance and Improvement


BOARD

The Board of Directors is the governing body of Holmesglen.

This Board is responsible for the governance and management of the Institute. It is required to advance the Institute’s objectives – and to operate in accordance with the objectives and public sector policy established by the Victorian Government.

The Board’s powers, duties and composition are set out in legislation and the Institute’s Constitution. As part of its duties, the Board reviews and approves the Institute’s strategic plan and its Compact with the Victorian Government.

Our 2017 Directors were:

• Mr Peter Lewinsky (Chair)• Ms Keri Bailey• Ms Ann Barker• Mr Dean Cleland• Ms Karen Corry• Emeritus Professor Peter Darvall AO• Ms Mary Faraone• Mr Michael Gorton AM (appointed 1 October 2017)• Mr James Grant (1 January to 15 March 2017)• Ms Christina Karamzalis• Ms Leonie Morgan AM• Mr Bruce Porter• Ms Catherine Walsh

Board committeesIn 2017, the Board operated five committees:

• Asset and Infrastructure Committee – Chair, Ms Karen Corry This committee oversees and monitors the Institute’s capital facilities and infrastructure development – including Information and Communication Technologies (ICT) and major equipment. It also monitors the progress of major capital projects.

• Audit Committee – Chair, Mr Bruce Porter This committee is responsible for accountability, risk management and internal control affecting the Institute’s operations. It also ensures the adequacy of our financial reporting and financial management practices.

• Higher Education Academic Committee – Chair, Emeritus Professor Peter Darvall AO This committee oversees all aspects of teaching and learning related to higher education programs at Holmesglen.

• Investment Committee – Chair, Mr Bruce Porter This committee dissolved on 18 October 2017. The Holmesglen Board now directly oversees the Institute’s investments and those of its controlled entities.

• Remuneration Committee – Chair, Ms Catherine Walsh This committee oversees all people-related activities at Holmesglen. It also ensures proper governance, compliance and capability so we can deliver our strategic objectives.

Seated (L-R): Catherine Walsh, Bruce Porter, Mary Faraone, Peter Lewinsky (Chair), Leonie MorganStanding (L-R): Dean Cleland, Christy Karamzalis, Peter Darvall, Ann Barker, Michael Gorton, Keri Bailey Absent: Karen Corry

Board Directors as at 31 December 2017



Holmesglen FoundationA controlled entity of Holmesglen, the Holmesglen Foundation operates through a trust deed between the Institute and Glenuc Pty Ltd (the Trustee).

It is responsible for ensuring the Foundation operates in accordance with its trust deed, and complies with all governance and regulatory requirements.

The Directors of Glenuc in 2017 were:• Mr Peter Lewinsky (Chair)• Ms Wesa Chau (appointed 3 July 2017)• Mr James Grant (retired 15 March 2017)• Ms Mary Faraone• Mr Bruce Porter

Holmesglen International Training Services Pty LtdHolmesglen International Training Services Pty Ltd is a fully-owned subsidiary of Holmesglen Institute.

Its Directors in 2017 were:• Mr David Duggan (retired 13 June 2017)• Mr David Endean• Ms Mary Faraone

CONTROLLED ENTITIES

EXECUTIVEMs Mary Faraone Chief Executive Effective and efficient management of the Institute, its strategic direction and the achievement of business objectives.

Ms Leone English Executive Director, Education and Applied Research Delivery of all education programs and applied research at Holmesglen.

Ms Joanne James Chief Finance Officer Management of the Institute’s financial resources and strategies to optimise the provision and efficient use of funds.

Ms Suzanne McKinnon Executive Director, Engagement and Support Provision of learner support, educational administrative services and strategies to improve learner and community engagement.

Mr Bruce Prescott Executive Director, Workforce, Performance and Improvement Development of Holmesglen’s people, ICT resources, institutional performance and compliance practices.

Mr David Saunders Executive Director, International Education and Business Development Achievement of Holmesglen’s commercial growth agenda through business development, business-to-business activities and international education operations.

Mr Enzo Spangher Executive Director, Infrastructure and Asset Management Development and maintenance of campus infrastructure and Holmesglen’s capital works program.

L-R: Joanne James, David Saunders, Suzanne McKinnon, Mary Faraone, Bruce Prescott, Leone English and Enzo Spangher

Executive team as at 31 December 2017


KEY INITIATIVES AND PROJECTS

Holmesglen Private Hospital and Moorabbin campus learner hubThe all-new Holmesglen Private Hospital and learner hub both opened in 2017.

A joint initiative between Healthscope and Holmesglen, Holmesglen Private Hospital is now the focal point of the Holmesglen Health Precinct – linking clinical practice, teaching and applied research.

Alongside this development, the Victorian Government funded a new learner hub at the Moorabbin campus.

Centre for Applied Research and InnovationIn its first year of operation, the Centre for Applied Research and Innovation undertook initiatives to develop and strengthen the profile of applied research at Holmesglen.

Key achievements in 2017 included:• Increased number and diversity of research

projects

• New partnerships with industry, community and government agencies

• Greater staff capability through our applied research workshop program

• Increased exposure for Holmesglen at local and international applied research conferences

Holmesglen’s research program spans a range of industries and industry partners, including:

• Heart Foundation: Holmesglen contributed to research into the development of a training initiative to better educate chefs about customers’ dietary requirements.

• Museums Victoria and Sovereign Hill: Holmesglen’s fashion studies lecturers partnered with industry and other education providers to conduct applied research into re-creating British army red coats worn during Victoria’s gold rush period.

• South East Water: Holmesglen continued the applied research project which investigates heating harvested water for new housing developments.

• University of Dundee and the Dasman Diabetes Institute: Holmesglen contributed to a psychosocial impact study of type 1 diabetes on children (birth to eight years) in Australia, Scotland and Kuwait.

• Department of Environment and Primary Industries: Holmesglen learners are using DNA barcoding technology to identify and record species in rural Victoria. This is part of a worldwide effort to document and map all living species.

• Monash Health: Holmesglen contributed to a survey of health professionals to determine their views, experiences and learning needs relating to end-of-life care.

Community service initiativesHolmesglen successfully applied for funding to deliver services and programs that keep learners engaged and on track to achieve their education and employment goals.

Funded by the Victorian Government, the Community Service Fund enabled Holmesglen to:

• Work with local organisations and businesses to establish strong employer networks and provide advice on careers, courses and employment through its Skills and Job Centre

• Continue the Apprentice Support Centre, a team of mentors who help trade apprentices overcome personal, financial, educational and employment issues, and stay engaged in off-the-job training

• Establish a Learning Skills Centre to provide language, literacy, numeracy and study skills support – in class, online, on campus and via referral

• Continue to provide educational programs and wrap-around services to learners at Holmesglen’s Vocational College and the Department of Community and Transition Education

• Provide more counselling and welfare services

Learner engagement and study toursHolmesglen hosted the second Run for Change with Rosie Batty on Sunday 29 October 2017.

This event raised awareness of domestic violence, while allowing learners, staff and community members to support The Luke Batty Foundation and Impact for Women.

Our sports development learners continued to help the local community as part of the annual Coaching for Change program. Learners headed to Eildon to run coaching sessions and sports events – and to donate sporting equipment to local schools.

Hospitality staff and learners travelled to Japan in November, where they completed work placements at various restaurants and kitchens.

A group of learners and teachers went on a study tour to New York City, which immersed them in the artistic side of the city. The group comprised learners from fashion, animation and interior decoration and design courses.

Holmesglen and PwC Higher Apprenticeship ProgramHolmesglen is working with Price Waterhouse Coopers (PwC) to deliver a higher apprenticeship program in Victoria.

This program is an alternative pathway to the traditional graduate route. It allows learners to earn a competitive salary while studying towards a professional qualification at Holmesglen.

Staff service recognitionIn 2017, Holmesglen implemented a recognition program for our long-term serving staff members to acknowledge their loyalty and contribution to the Institute. Staff who achieved 30 years of service were awarded commemorative pins at the Holmesglen Awards Festival Dinner. Staff with 20 years of service were recognised at a special on-campus ceremony in August. The program will expand in 2018 to include recognition of staff with 15 years of service and those who have now achieved 20 year and 30 year milestones. Staff are presented with a lapel pin designed and handcrafted by Ruby Tuesday Gallery.



AUSTRALIAN COMMERCIAL ACTIVITIES

Australian Defence Force (ADF)Now in its fifth year, Holmesglen's contract with the ADF involves the delivery of multiple cookery and hospitality programs, as well as the Diploma of Quality Auditing, to employees from the three defence services.

In 2017, 244 ADF personnel undertook their training at Holmesglen's Waverley campus. The service operations program was also delivered to Navy personnel.

Program innovations in 2017 included:• Additional trade skills assessment for qualified

members joining the program• A new bakery skill set following installation of new

specialist equipment• More comprehensive resources including job-

specific content, such as field work and mobile kitchen examples and scenarios

In 2017, the original contract was extended by two years to 2020.

Le Cordon BleuThe partnership between Le Cordon Bleu Australia and Holmesglen is now in its third year.

In 2017, more than 375 learners undertook the Diplôme de Cuisine, Diplôme de Pâtisserie and Diplôme Advance de Gestion Culinaire at the Moorabbin campus. An additional 162 learners completed their industry placement.

This year, Holmesglen also installed two new multipurpose kitchens at a cost of over $2 million to service Le Cordon Bleu learners.

The Institute maintained its position as the national benchmark for the delivery of Le Cordon Bleu’s programs within Australia in 2017. This is due to our quality facilities, the professional standing of our teachers and the employment outcomes of our learners.

Cross Yarra Partnership The Cross Yarra Partnership selected Holmesglen as its training partner in its successful bid to build Melbourne’s Metro Tunnel.

As part of this bid, the consortium – consisting of Lend Lease, John Holland, Bouygues Constructions and Capella Capital – included an option to develop a specialised tunnelling centre. Lend Lease and Holmesglen completed a detailed feasibility study in late 2017 during the consortium’s contract negotiations with the Melbourne Metro Rail Authority, and funding has been made available to establish a specialised tunnelling centre.

Print industryThe Print Industries Association Australia signed an agreement for Holmesglen to provide training services to the printing and visual communications industries.

Holmesglen is now delivering the Certificate III in Printing. By the end of 2017, 55 learners were undertaking this program.

30 years of service 20 years of service 15 years of service


OVERSEAS OPERATIONS

In 2017, Holmesglen continued to deliver Australian qualifications in China, Qatar and Mongolia – and non-accredited courses in Indonesia, Japan and China.

Holmesglen staff across the Institute also provided consultancy services in the design, development and delivery of VET programs in Sri Lanka and India.

The Institute successfully applied to become one of a handful of Australian providers to offer the Australian Government’s International Training and Assessment Courses (ITAC). Designed to build the skills of trainers in TVET systems across our region, Holmesglen now delivers these programs as part of its international consultancy services.

International learner recruitmentHolmesglen staff visited 23 countries during the year to support its international learner recruitment activities. These visits included meetings with education agents and consultants, and the development of new and existing articulation agreements with partner institutions.

A key focus for the Institute in 2017 was understanding the study lifecycle of international learners – from recruitment to graduation. These findings have been used to develop strategies for better outcomes.

Transnational partnershipsHolmesglen has proudly partnered with institutes in major Chinese cities including Jinan, Ningbo, Wuhan and Guangzhou for many years. These partnerships have seen the delivery of Australian qualifications in China, and the development of articulation pathways into Holmesglen vocational and higher education programs.

During 2017, these programs were redesigned to recognise Chinese qualifications and deliver supplementary, tailored, non-accredited courses. The new model provides learners with secure pathways and supports their entry into Holmesglen’s vocational and degree programs.

A new partnership with Nanjing Xiaozhuang University saw us pilot specialist, non-accredited units from Holmesglen’s early childhood teaching degree. We are planning more programs in 2018 based on the success of the pilot delivered by Holmesglen staff.

New partnerships in Chengdu and Wuhan resulted in their teachers attending four months of customised English and industry programs in Melbourne throughout 2017.

International projects

Kamori Kanko (Japan)The Institute won the contract to deliver an English program, using Webex synchronous learning, to employees of the resort company, Kamori Kanko. Holmesglen hospitality teachers then delivered an interactive session on diversity.

This work contributes to preparations for the 2020 Olympics by resorts across Hokkaido and elsewhere in Japan.

Oyu Tolgoi (Mongolia) The Institute’s partnership with Rio Tinto at the Oyu Tolgoi (OT) mine was extended by a further three years to 2020.

The OT mine is the largest copper mine in the world and a model for training and safety standards. In 2017, the project focussed on up-skilling existing workers to meet the high standards of the apprentices who had undertaken Holmesglen training. As part of the new contract, the Institute will take over the administration and quality assurance of OT’s pre-apprentice schools in the Southern Gobi Desert commencing in 2018.

Qatar Central Bank (Qatar)In 2017, Holmesglen continued to oversee the delivery of Australian qualifications in the bank’s specialist business and finance school for girls and boys in Qatar. The Holmesglen project team in Qatar also deliver teacher training and curriculum support.

Holmesglen English Language School (Indonesia) During 2017, the Holmesglen Language Centre at the Universitas Muhammadiyah Tangerang provided practical English tuition to 540 of the university’s learners.

This partnership is a strategic springboard that aims to develop relationships with universities, colleges and schools in the Muhammadiyah Foundation – and in Indonesia more broadly.

TVET and Mining Study Tour (Mongolia)Holmesglen won the bid to host a study tour of Mongolian TVET ministry officials and representatives of the mining industry.

GIZ, the German aid management company that funded the trip, recognised Holmesglen’s specialist knowledge of mining training in Mongolia.

Risk management and performance monitoring of overseas operationsHolmesglen’s Risk Management Plan provides the policy framework to identify and manage all strategic and operational risks, including those inherent in its overseas operations.

Overseas activities also contribute to the achievement of key financial and strategic performance targets, including the growth of onshore international learner enrolments and revenue from commercial activities. These are monitored by the executive team and Board through performance and budget reporting mechanisms.

Refer to the Statement of Performance section of this report for further detail.



AWARDS AND ACHIEVEMENTS

Institute awards

Australian Training Awards – International Training Provider of the Year Holmesglen proudly accepted the 2017 ‘International Training Provider of the Year’ accolade at the 2017 Australian Training Awards. The award further acknowledges Holmesglen’s excellence as an international education provider.

In 2016, Holmesglen was honoured with both a Provider and Premier’s award – ‘Excellence in International Education - TAFE’ and ‘International Education Provider of the Year’ – at the Victorian International Education Awards.

Australian Training Awards and Victorian Training Awards – Industry Collaboration Award Holmesglen’s industry collaboration with the Electrical Trades Union (ETU), Victorian Branch was recognised at the highest level in 2017. Futuretech won the Industry Collaboration Award at the Australian Training Awards, after securing the state-based category at the Victorian Training Awards.

A $3 million facility at the ETU headquarters in North Melbourne, Futuretech provides electrical professionals the opportunity to up skill and enables apprentices and pre-apprentices to train for their careers.

Following the win at the Victorian and Australian awards, the partners announced that 10 new scholarships would be available to pre-apprentices.

Australian Event AwardsHolmesglen’s events department received further industry acknowledgement, with their courses being nominated for a successive year at the Australian Event Awards.

The Institute was announced as a finalist at the ceremony in September. This recognition continues Holmesglen’s standing in the events field following its win of the ‘Best Education or Training Program’ at the 2016 Australian Event Awards.

RACV Victorian Tourism AwardsHolmesglen at Eildon won its second consecutive RACV Victorian Tourism Award for its excellence as an event venue.

The team was awarded Gold in the Business Event Venue category at the 2017 awards ceremony. This was the second time Holmesglen’s conference retreat was recognised in the category at the state’s premier award ceremony for the tourism industry.

Learner awards

Holmesglen learners were honoured with a range of industry awards in recognition of their talents and skills, including:

• Iyiade (Hybee) Abinuomo – Nominee, Australian Nursing and Midwifery Federation Student Awards

• Gabrielle Barry (first), Del Whitehead (second) and Goulda Perera (third) – Novice wedding cake, Baking Industry Trade Show

• Aaron Creak – Gold (carpentry), WorldSkills, Melbourne East Region

• Kasae Fraser – Shared Tables Thierry Marx Career Development Award

• Bruno Gusmao – Winner, Best Digital Presentation by a Student, Building Design Association of Victoria Awards

• Ben Griek – Silver, Avenue of Achievable Gardens, Melbourne International Flower and Garden Show

• Esra Kullu – Victorian Apprentice Pastry Chef of the Year, Baking Association of Australia Excellence in Baking Competition

• Charles Leadbetter – Bronze, Avenue of Achievable Garden’s, Melbourne International Flower and Garden Show

• Sagi Maor – Bronze, Avenue of Achievable Garden’s, Melbourne International Flower and Garden Show

• Mitchell Price – Second place commercial/domestic category, NECA Apprentice Awards

• Liyan Shi – Drafting Excellence by a Student class, Building Design Association of Victoria Awards

• Tim Stanway – Winner industrial category, NECA Apprentice Awards

• Mitchell Stevens – Australian Mechanical Contractors’ Association Training Award

• Samuel Wang – Winning team member, Paddl Games Metro Scratch Space Challenge

Staff achievements

In 2017, two of Holmesglen’s higher education teachers launched new texts:• Bachelor of Early Childhood Teaching Course

Leader, Hanan Sukkar, released her first book, Early Childhood Intervention. This academic text aims to bring the ‘Australian value’ to early childhood education.

• Konrad Marshall, a sessional lecturer in the sports degrees, released his book, Yellow and Black: A season with Richmond. Konrad was also a finalist for three major Australian Sports Commission awards in 2017: ‘Best coverage of sport by an individual (print media)’, ‘Best profiling of an athlete, team or coach (print media)’ and ‘Best analysis of the business of sport (print media)’.

Bachelor of Hospitality Management lecturer, Warren Guest, was awarded a VET Development Centre Practitioner Scholarship in 2017. This scholarship saw Warren increase his professional skills and perspectives as a beginning researcher and present his research findings at conferences in Australia and overseas.

Simon Bruce, head of Holmesglen’s Professional Workforce Solutions, was awarded an Institute of Specialist Skills fellowship. This fellowship saw him explore how social and collaborative tools and technologies can be established as a framework for consequential learning.



2017 HOLMESGLEN AWARDS FESTIVAL

Holmesglen celebrates the achievements of all its learners at its annual awards festival. The festival culminates at the Awards Dinner, where we formally recognise excellence within our community.

The 2017 Awards Festival acknowledged the outstanding efforts of the following Holmesglen learners and staff.

We also recognised the following industry partners for their contribution to vocational and higher education at Holmesglen in 2017:

Student Awards Winner Course

Outstanding VCAL Student Lauren Graunke Victorian Certificate of Applied Learning

Outstanding Certificate Student Jillian Hardy Certificate IV in Allied Health Assistance

Outstanding Apprentice Greg Hogan Certificate III in Upholstery

Outstanding Diploma Student Alison Hayes Advanced Diploma of Interior Design

Outstanding International Student Panhavuth Kret Diploma of Graphic Design

Outstanding Higher Education Student Alexie Beovich Bachelor of Sports Media

Individual Achievement Award Joshua Finlay Certificate II in Horticulture

Staff Awards Winner Area

Excellence in Customer Service Jemma GendallFaculty of Education, Service Skills and Environment

Innovation and Excellence Robbie CoyleFaculty of Education, Service Skills and Environment – Sports Degrees

Table 1: 2017 Holmesglen Awards Festival winners

HOLMESGLEN FOUNDATION

The Holmesglen Foundation was established in 2007 to support the Institute’s commitment to accessible education and skills development – particularly for learners who require support to undertake our courses.

In 2017, the Foundation set new strategic objectives around alumni engagement and philanthropic activities to increase its support. All Holmeglen directors support the Foundation and its activities.

Distribution of grantsFor the year ending 31 December 2017, the Foundation distributed $1,004,966 to the Institute. These funds provided scholarships, grants, programs and services to help learners commence and remain engaged in their studies.

• Victoria Police• SKP Events• Impact Apprentices• Cramer Design Pty Ltd

• Allianz Global Assistance • Apprentice Employment

Network• Aughtersons Lawyers• Keri Bailey• Commonwealth Bank• Wesa Chau• Karen Corry• Dean Cleland• Peter Darvall AO• Mary Faraone

• Michael Gorton AM• Healthscope• Christy Karamzalis• Peter Lewinsky• Leonie Morgan AM• Bruce Porter• Vincent Ramos• ShineWing• TAFE Directors Australia• Catherine Walsh• One anonymous donor

Thank you to our supportersOur honour roll recognises the inaugural donors and supporters who gave generously in 2017. On behalf of our learners, the ultimate beneficiaries of your support, thank you for your confidence.



FINANCIAL OVERVIEW

A key objective of the Holmesglen 2014-2017 Strategic Plan was to invest in a sustainable future. Strategies for achieving this objective included:

• Optimising revenue• Diversifying income streams• Implementing efficient and cost-effective processes and systems• Continuing investment to transform processes, services and systems

The Institute achieved a net result from transactions of $11.050 million for 2017 (compared to $10.375 million in 2016). This result exceeded our target of $5.303 million.

Taking other economic flows into account, the Institute achieved a consolidated net result of $25.083 million (compared to $15.975 million in 2016). This result is consistent with our commitment to continued financial sustainability and will further strengthen the Institute’s financial position. It will also support investment in the Vision 2020 Strategic Plan and in the improved outcomes for learners, staff, community, industry and government stakeholders.

Financial performanceA key measure of the Institute’s financial performance is the consolidated net result from transactions. This indicator measures financial performance before attributing any gains or losses made on the revaluation of campuses and investment properties.

The Institute recorded an improved net result for 2017. This was due to growth in income which can be attributed to:

• A 5 per cent growth in training revenue • Victorian Government contributions through the Community Service Fund and the Stronger TAFE Fund (which

recognise the community service obligations of TAFE institutes as well as the additional cost of the public TAFE workforce and maintaining TAFE owned assets)

• Improved investment returns

These factors also contributed to increased operating expenditure. Additional expenditure was also a result of a new enterprise agreement for administrative and general staff.

Financial positionThe Institute’s financial position is reflected in its balance sheet. A key indicator of the Institute’s financial position is determined from its net assets (assets less liabilities), which is equal to its net worth. At 31 December 2017, the Institute’s net worth rose significantly from the previous year, with consolidated net assets and net worth increasing by 24.5 per cent to $502.704 million.

The growth was due to the favourable trading results for the year and the revaluation gains recorded for the Institute’s learning campuses and investment properties. Five-year financial summaryThe following tables summarise the Institute’s financial performance and financial position. They are extracted from comprehensive operating statements and balance sheets for the current year and preceding four years. The financial information is presented on a consolidated basis and includes the Institute’s controlled entities.

Table 2: Consolidated comprehensive operating statement

Year ending 31 December 2017

$’000

2016

$’000

2015

$’000

2014

$’000

2013

$’000

Government contributions – operating 49,423 42,567 36,072 39,904 64,134

Government contributions – other 18,770 10,763 16,757 5,443 7,667

Government contributions – capital 2,150 5,000 1,000 - 1,051

Sale of goods and services 80,309 80,836 88,098 92,011 77,352

Other income 13,559 14,067 13,617 12,880 11,916

Total income from transactions 164,211 153,233 155,544 150,238 162,120

Total expenses from transactions (excluding depreciation and

interest expense)143,017 132,843 143,342 151,913 154,606

Earnings before interest expense, depreciation and

amortisation (EBITDA)21,194 20,390 12,202 (1,675) 7,514

Depreciation and amortisation 10,144 10,015 9,742 11,010 11,432

Interest expense - - 993 1,076 1,164

Net result from transactions 11,050 10,375 1,467 (13,761) (5,082)

Other economic flows included in net result 14,033 5,600 13,908 1,896 (1,721)

Net result 25,083 15,975 15,375 (11,865) (6,803)


COMPLIANCE

Table 3: Consolidated balance sheet

Year ending 31 December 2017

$’000

2016

$’000

2015

$’000

2014

$’000

2013

$’000

Assets 552,638 450,069 429,554 420,282 429,389

Liabilities 49,934 46,560 43,259 52,587 50,594

Net assets 502,704 403,509 386,295 367,695 378,795

Accumulated surplus 159,968 134,885 118,910 103,535 115,400

Reserves 219,929 145,817 144,578 141,353 140,588

Contributed capital 122,807 122,807 122,807 122,807 122,807

Net worth 502,704 403,509 386,295 367,695 378,795

Holmesglen complies with all relevant legislation and subordinate instruments including, but not limited to, the following:

• Education and Training Reform Act 2006 (ETRA)• Constitution of Holmesglen Institute • Directions of the Minister for Training and Skills (or predecessors)• TAFE Institute Commercial Guidelines• TAFE Institute Strategic Planning Guidelines• Public Administration Act 2004• Financial Management Act 1994• Freedom of Information Act 1982• Building Act 1993• Protected Disclosure Act 2012• Victorian Industry Participation Policy Act 2003

Public Administration Act 2004Holmesglen employees are employed under Part 4 of the Public Administration Act 2004. Data on headcount and full-time equivalents, separated by gender, is shown under Workforce Data.

Further details on staff can also be found in the annual Workforce Analysis and Comparison Application, which is provided to the Victorian Public Sector Commission to assist with policy and planning.

Freedom of Information Act 1982The Freedom of Information Act 1982 allows the public a right of access to documents held by the Institute.

Requests for access to records should be directed to Ms Tricia Farnes, Freedom of Information Officer. Applicants are required by the Act to request access to documents in writing. No form of application is specified. A letter which clearly describes the documents(s) sought is sufficient. The letter should:• Specify that the application is a request made under the Freedom of Information Act 1982, and should not

form part of a letter on another subject• Include the applicant’s name, address and telephone number where the applicant can be contacted during

business hours• Detail the document(s) requested• Specify the form of access required, for example copies of documents, inspection of files or other format

Charges for access to information are in accordance with the Freedom of Information (Access Charges) Regulations 2004. Holmesglen received one application for information under the Freedom of Information Act 1982 during the year ended 31 December 2017.

Building Act 1993Holmesglen holds all building related plans and documentation for building extensions and building approvals lodged for new buildings by certified building surveyors.

On completion of construction, Holmesglen has obtained certificates of occupancy and practical completion certificates from the relevant architects, building surveyors and authorities. All building certificates are kept in a database and all hardcopies are located in a fire rated archive. All building consultants and builders who are engaged by Holmesglen hold current registration as building practitioners and have current insurance cover.


Holmesglen considers that all buildings across all campuses currently conform to the building regulations that existed at the time of construction of the respective buildings. The Essential Safety Measures are recorded and reported by the Hendry Group Pty Ltd. Holmesglen provides a copy of the current Essential Safety Measures for display within all buildings. All new buildings constructed since the promulgation of the Building Act 1993 (including subsequent amendments) comply with the relevant standards.

Holmesglen has processes in place to ensure that any alterations or improvements to buildings meet the necessary standards, ensure that they are safe and fit for purpose and comply with the updated disability code. Holmesglen engages the services of licenced tradespeople such electricians and plumbers who provide the required certificates of compliance, which are stored in a fire rated archive.

Table 4: Building Act 1993 compliance (2015 – 2017)

2015 2016 2017

Building works

Building works certified for approval 2 4 5

Building works in progress subject to mandatory inspections 2 4 -

New certificate of occupancy issued 3 - 5

Essential safety measures

All buildings on each campus - owned

All buildings on each campus/site - leased

Maintenance

Combination in-house and external specialist contractors

Lift contract – comprehensive/performance-based

Mechanical services contract – performance-based

Mechanical services/BAS contract – performance-based

Waste services contract – performance-based

Cleaning services contract – performance-based

Other maintenance agreements include those for heating, ventilation, air-conditioning and cooling, catering equipment, hygiene, pest control, industrial cleaning, refrigeration, vehicle fleet maintenance, backflow prevention, trade waste, electrical, plumbing, signage, car parks, gardening services and arborist.

Protected Disclosure Act 2012The Protected Disclosure Act 2012 encourages and assists people to make disclosures of improper conduct by public officers and public bodies. The Act provides protection to people who make disclosures in accordance with the Act. It also establishes a system for the matters disclosed to be investigated and the rectifying action taken.

Holmesglen does not tolerate improper conduct by employees, nor the taking of reprisals against those who come forward to disclose such conduct. The Institute has policies and procedures in place which promote and facilitate the disclosure of improper conduct to the Independent Broad-based Anti-Corruption Commission (IBAC).

An Institute Rule for Protected Disclosure was developed in 2013. It established a system for the protection of persons who make a protected disclosure under the Act from detrimental action by officers, students, employees and contractors of Holmesglen. This is in accordance with section 58 (5) of the Act and ensures that all other requirements of the Act are met. The Rule is available on the Holmesglen Management System.

Officers, students, employees and contractors of Holmesglen, as well as members of the public, may make a disclosure of improper conduct or detrimental action under the Act to IBAC. IBAC can be contacted at:

Level 1, North Tower459 Collins Street Melbourne, VIC 3000

Holmesglen’s Protected Disclosure Co-ordinator cannot receive disclosures (they must be made directly to IBAC), but is responsible for coordinating responses to the Commission, the Victorian Inspectorate or the Ombudsman. They are also responsible for recording any reported detrimental action against a discloser once notice is received.

Carers Recognition Act 2012Holmesglen has reviewed the application and operation of the Carers Recognition Act and ensured that the Institute meets the applicable obligations of the Carers Recognition Act 2012. This covers carer recognition principles included in relevant policies, flexible working arrangements and part-time work opportunities.


Victorian Industry Participation Policy Act 2003The Victorian Industry Participation Policy Act 2003 requires departments and public sector bodies to report on the implementation of the Victorian Industry Participation (VIPP).

Departments and public sector bodies are required to apply VIPP in all procurement activities valued at:• $3 million or more in metro Melbourne • $1 million or more in regional Victoria for state-wide projects

Holmesglen has complied with the Victorian Industry Participation Policy Act 2003 in respect to ongoing projects. In 2017, there were no new applicable projects that related to this Act.

National Competition PolicyHolmesglen continued to comply with the principles of the National Competition Policy (and any subsequent reforms). These include:• Competitive Neutrality: A Statement of Victorian Government Policy• Victorian Government Timetable for the

Review of Legislative Restrictions on Competition

It implemented measures to ensure policy applicable to commercial activity and to pricing of bids for government-funded education and training advertised for competitive tender.

The Institute fulfilled its obligations and met its wider responsibilities to the community by applying competitive neutrality in the public interest.

Victorian Public Sector Travel PrinciplesHolmesglen has policies and procedures in place relating to domestic and international travel to ensure compliance with the Victorian Public Sector Travel Principles.

Fees and chargesStatement on compulsory non-academic fees, subscriptions and charges (Higher Education)

Holmesglen charges student services and amenities fees strictly in accordance with:• The Higher Education Support Act 2003 (the Act)• The Administration Guidelines made under the Act

Revenue from this fee is spent strictly in accordance with the Act and for the provision of services and amenities as specified in subsection 19-38(4) of the Act.

Table 5: Statement of Income and Expenditure for the Year Ended 31 December (2015 - 2017)

Student services and amenities fees2015

($’000)

2016

($’000)

2017

($’000)

Unspent / (overspent) revenue from previous period 88 130 33

SA-HELP revenue earned 29 59 42

Student services fees direct from students 141 111 227

Total revenue expendable in period 258 300 302

Student services expenses during period -128 -267 -298

Unspent / (overspent) student services revenue 130 33 4

Statement on compulsory non-academic fees, subscriptions and charges (VET)

Holmesglen charges fees for programs and services which include:• Tuition fees: vary according to individual VET programs • Concession fees: set at 20 per cent of the hourly tuition fee rate in accordance with the Skills First program

2017 Guidelines about Fees• Class materials and ancillaries fees: charged at different levels based on the programs

Fees and charges for programs can be found at the individual program pages on the Holmesglen website.

ConcessionsConcessions on tuition fees apply to individuals enrolling in a Certificate I to IV course with a valid Commonwealth Health Care Card, Pensioner Card or Veteran’s Gold Card. Concessions also apply to the cardholder’s dependent spouse or child.

In addition, learners who self-identify as Aboriginal and/or Torres Strait Islander are entitled to concession fees for all course enrolments, including diploma and advanced diploma level courses.


ExemptionsTuition fee waivers/exemptions under the Skills First program were made available (in accordance with the 2017 Guidelines about Fees) to individuals who are:• From the Judy Lazarus Transition Centre (as a prisoner within the meaning of the Corrections Act 1986)• Required to undertake a course pursuant to a community based order under the Children, Youth and Families

Act 2005• With a ‘Young People Transitioning From Care Initiative’ referral

ConsultanciesIn 2017, there was one consultancy where the total fees payable were $10,000 or greater. Total expenditure incurred during 2017 in relation to this consultancy was $77,486. The following table constitutes compliance with the requirement to make this information publicly available.

Table 6: Details of individual consultancies valued at $10,000 or greater (2017)

Consultant Summary of project Fee ($) Future

expenditure

Noetic Solutions P/L Facilitation of strategic planning processes 77,486 Nil

Total 77,486 Nil

Note: Figures reported exclude GST

In 2017, there was one consultancy where the total fees payable to the consultant was less than $10,000. Total expenditure incurred during 2017 in relation to this consultancy was $4,455.

Information and Communication Technology expenditureTotal ICT expenditure for the 2017 reporting period was $20.1 million, with the details shown below.

Table 7: ICT expenditure (2017)

Business as Usual (BAU)

ICT expenditure

Non-Business as Usual (non-BAU)

ICT expenditure

Operational and Capital Operational Capital

$8.8 million Nil $11.3 million

Government advertising expenditure

Table 8: Government advertising expenditure for campaigns with a media spend of $100,000 or greater (2017)

Name of campaign

Summary Start/end date

Advertising (media)

expenditure ($ ex GST)

Creative and campaign

development expenditure

($ ex GST)

Research and

evaluation expenditure

($ ex GST)

Print and collateral

expenditure($ ex GST)

Other campaign

expenditure($ ex GST)

Mid-year recruitment campaign

Learn More Do More recruitment campaign executed across strategic outdoor locations, transit, radio, television commercial and cinema audiences.

March - July 2017

$264,000 $0 Nil (in house) $21,000 (print and

install)

$10,000

2017 New Year recruitment campaign

Learn More Do More recruitment campaign executed across strategic outdoor locations, transit, radio, television commercial and cinema audiences.

August - December 2017

$270,000 $2,000 Nil (in house) $28,000 (print and

install)

$5,000

2017 Open Day campaign

Learn More, Do More Open Day call to action campaign. Digitally focused with radio support to drive Open Day bookings to the website and capture prospects in the conversion funnel.

January - December 2017

$128,000 $12,000 Nil (in house) $0 $0


Major Commercial ActivitiesDuring 2017, Holmesglen did not undertake any major commercial activities in accordance with the Commercial Guidelines - TAFE Institutes.

Additional information available on requestConsistent with the requirements of the Financial Management Act 1994, and subject to the provision of the Freedom of Information Act 1982, Holmesglen has prepared material on the following items (further details available on request):• A statement that declarations of pecuniary interests have been duly completed by all relevant officers• Details of shares held by a senior officer as nominee or held beneficially in a statutory authority or subsidiary• Details of publications produced by Holmesglen about the institute and how these can be obtained• Details of changes in prices, fees, charges, rates and levies charged by the institute• Details of any major external reviews carried out on the institute• Details of major research and development activities undertaken by Holmesglen• Details of overseas visits undertaken, including a summary of the objectives and outcomes of each visit• Details of major promotional, public relations and marketing activities undertaken by the Institute to develop

community awareness of Holmesglen and its services • Details of assessments and measures undertaken to improve employee occupational health and safety• A general statement on industrial relations within the Institute and details of time lost through industrial

accidents and disputes• Details of major committees sponsored by the Institute, the purposes of each committee and the extent to

which the purposes have been achieved • Details of all consultancies and contractors including:

(i) Consultants/contractors engaged (ii) Services provided (iii) Expenditure committed for each engagement

Requests to access this information should be made to:Joanne JamesChief Finance Officer

Risk Management Compliance Attestation Statement

I, Mary Faraone, Chief Executive and Director, on behalf of the Board, certify that for the period 1 January 2017 to 30 June 2017, Holmesglen Institute has complied with the Ministerial Standing Direction 3.7.1 – Risk Management Framework and Processes. The Audit Committee verifies this assurance.

Mary FaraoneChief Executive and Director21 March 2018

Financial Management Compliance Attestation Statement

I, Mary Faraone, Chief Executive and Director, on behalf of the Board, certify that for the period 1 July 2017 to 31 December 2017, Holmesglen Institute has complied with the applicable Standing Direction of the Minister of Finance under the Financial Management Act 1994 and Instructions.

Mary FaraoneChief Executive and Director21 March 2018


WORKFORCE

Occupational Health and Safety (OHS)Holmesglen is committed, as far as practicable, to providing a safe and healthy environment for its employees, learners and visitors.

Everyone is responsible for their own safety and the safety of others. The Human Resources OHS Advisory Team assists faculties and departments to fulfil their OHS and WorkCover regulatory obligations.

All Holmesglen employees are required to complete a suite of compliance modules on the HR learning management system upon their commencement and every two years thereafter. The following modules are available in the OHS catalogue of the system:

• Occupational Health and Safety Fundamentals• Bullying and Harassment for Employees• Bullying and Harassment for Managers and Supervisors• Hazardous Substances and Dangerous Good Awareness• Manual Tasks for Workers• OHS Responsibilities for Managers and Supervisors

OHS consultative frameworkHolmesglen employees are represented by elected and trained Health and Safety Representatives who work with their managers to identify and resolve safety issues. There are 36 designated work groups across the Institute.

An OHS Committee meets every two months to share information and address any safety issues. The committee consists of an equal number of employer and employee representatives. Employee committee members are elected from the pool of Health and Safety Representatives, however all representatives are encouraged to attend the meetings. Meeting minutes are displayed on safety noticeboards across the Institute and on the staff intranet. Safety is an agenda item at all Institute meetings.

Table 9: Staff incident statistics (2015 – 2017)

2015 2016 2017

Staff hazard or injury reports 76 67 68

Staff hazard or incident reports per 100 full-time equivalent (FTE) staff 8.0 6.4 6.3

Note: FTE is the average FTE for the reporting year

Workers compensation and injury managementIn 2017, lost time incidents were associated with physical injuries (e.g. fractured ankle, back injury, plantar fasciitis and hernia).

Table 10: Lost time incidents (2015 – 2017)

2015 2016 2017

Number of lost time incidents 4 6 5

Lost time claims (standard) per 100 FTE 0.42 0.57 0.46

Note: FTE is the average FTE for the reporting year

Average claim costsThe average estimate costs shown in the table below were generated on 30 December 2017 by Holmesglen’s WorkCover insurer, Xchanging Integrated Services. The average estimated claim costs alter on a monthly basis as WorkCover reimbursements are paid.

Table 11: Claim costs (2015 – 2017)

2015/16 2016/2017 2017/2018

YTD

Average estimate $121,708 $7,054 $35,620

Average paid $25,466 $2,002 $2,040

Note: Costs provided by Xchanging Integrated Services



Workforce dataHolmesglen reports workforce data in line with the: • Performance and Accountability Framework• Method used to report quarterly full-time equivalent (FTE) staff numbers to the Department of Education and

Training

This ensures the data accounts for full-time, part-time and casual employees, and that FTE calculations are consistent. Employees have been correctly classified in the workforce data collections below.

Table 12: Staff FTE (2016 – 2017)

Full Time Part Time Casual

Ongoing Fixed Term Ongoing Fixed Term Teacher Other

2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017

PACCT 142.0 146.0 138.0 133.0 39.5 45.3 31.1 34.8 28.2 40.7

Executive 18.0 17.0 0.0 0.0 0.0 1.7 0.0 0.0 0.0 0.0

Other 3.0 2.0 7.0 8.0 0.7 0.7 0.6 0.0 11.9 14.5

Teacher 157.0 156.0 129.0 135.0 46.0 46.2 36.5 35.0 255.2 272.9

Total 320.0 321.0 274.0 276.0 86.2 93.9 68.2 69.8 255.2 272.9 40.1 55.2

Note: FTE rounded to one decimal place

Table 13: Active staff as at the last full pay period in December (2016 – 2017)

2016 2017

Ongoing Fixed Term Casual Ongoing Fixed Term Casual

Count FTE Count FTE Count FTE Count FTE Count FTE Count FTE

Gender

Male 175 168.1 160 140.9 459 153.4 184 174.2 154 142.6 460 174.3

Female 277 238.1 236 201.3 603 141.9 280 240.7 228 203.2 615 153.8

Total 452 406.2 396 342.2 1062 295.3 464 414.9 382 345.8 1075 328.1

Age

Under 25 0 0.0 10 10.0 38 4.4 0 0.0 9 9.0 52 7.8

25 - 34 29 27.3 76 71.4 138 32.0 24 22.0 76 72.0 130 33.7

35 - 44 86 74.5 87 78.5 234 68.7 76 65.7 100 88.9 223 66.9

45 - 54 146 132.7 111 100.6 262 85.4 157 143.5 106 95.3 287 99.1

55 - 64 162 148.1 81 71.4 278 80.1 167 151.9 82 73.7 273 94.7

over 64 29 23.6 31 10.3 112 24.7 40 31.8 9 6.9 110 25.8

Note: FTE rounded to one decimal place



Workforce inclusionSection 8 of the Public Administration Act 2004 requires the Institute to establish processes that ensures:• Employment decisions are based on merit• Employees are treated fairly and reasonably• Equal employment opportunity is provided• Employees have a reasonable avenue of redress against unfair or unreasonable treatment

In 2017, Holmesglen adhered to these principles through the following actions.

Table 14: Actions taken to ensure compliance with the employment principles in the Public Administration Act 2004

Employment principle

Actions taken

Merit in employment

• Employment decisions were based on objective assessment of applicants’ work related qualities, abilities and potential against the genuine requirements of the position.

• Decisions to appoint new employees or promote existing employees were based on competitive selection with recruitment processes designed to identify a suitable field of qualified candidates. This included advertising vacancies to facilitate open competition and the application of objective selection criteria.

• Managers and supervisors involved in recruitment were required to complete the online module Best Practice Recruitment, which incorporates merit and equity requirements.

Fair and reasonable treatment of staff

• Decision-making processes were fair, accessible and applied consistently in comparable circumstances.• Decision-making criteria were relevant, objective and readily available to the people subject to the decision.• Decisions and actions were free of bias and unlawful discrimination.• Documentation was clear and comprehensive enabling decisions to be transparent and capable of effective

review.• Through the HR Learning Management System modules, staff information booklet and induction program,

employees are made aware of the Institute’s recruitment process, grievance procedure, equal employment opportunity policy, sexual harassment policy and code of conduct.

• Specific training has been conducted to refresh staff knowledge of legislative changes in this area.

Equal opportunity

• An Equal Opportunity (EO) policy statement is in place, which is accessible through the staff intranet, staff information booklet and induction program. The policy is reflected in all relevant processes.

• All employment related policies and procedures comply with applicable equal opportunity laws and support diversity across the workforce.

• Procedures are in place to notify the Chief Executive of any discrimination complaints and the findings of associated investigations.

• Data in relation to implementation of EO is monitored and evaluated on a regular basis.

Reasonable avenue of redress

• Employment related policies and procedures demonstrate a commitment to address employee grievances in an effective and timely manner. The intention is always to resolve issues internally and informally before applying more formal internal or external processes.

• The grievance review process and the rights and responsibilities of participants is available to all employees through the staff intranet, staff information booklet and induction program.

• The process requires appropriate delegation and accountability to be assigned to enable grievances to be effectively considered. Reviews are based on consideration of relevant facts and evidence.

• The principles of natural justice and procedural fairness are applied throughout a review process.

The Staff Code of Conduct is reviewed annually and guides all staff on expected behaviour and professional conduct. The Code is based on the Victorian Public Sector Code of Conduct and other best practice examples.



ENVIRONMENTAL PERFORMANCE

Energy efficient buildingsHolmesglen is undertaking a performance-based project as part of the Efficient Government Buildings Project, with a target of reducing CO2 emissions by 7,452 tonnes per annum. This project is valued at $5.7 million.

Project initiatives to date include:• Installation of three co-generation plants at the Chadstone campus and extension of cabling from Moorabbin

Building 3 co-generation plant to Building 4• Incorporation of an international measurement and verification process to ensure the specified CO2 emission

reduction target is achieved• Routine monitoring of room timetables to identify non-occupied periods to reduce heating and cooling

requirements• The following strategies have also been implemented in line with government policy:• Purchase of at least 25 percent of all power for Holmesglen’s five metropolitan campuses from renewable

sources• Continued installation of T5 and LED light fittings throughout the campuses• Continued installation of separate smart metering of buildings to enable a more comprehensive monitoring of

services• Continued implementation of the Building Automation System (BAS) on all campuses and upgrade to Alerton

Aurora package, centrally monitored from the Chadstone campus• Conversion of urinals on all sites to waterless systems and fitting refurbished buildings with dual flush cisterns

and purpose-built waterless urinals.• Incorporation of rainwater harvesting into some of the new building’s toilet cisterns• Installation of new high performance plant and equipment at the Chadstone, Moorabbin and Waverley campuses

In 2017, the Institute reduced its total consumption of energy and CO2 emissions through the following conservation measures.

Table 15: Energy savings projected by conservation measure (2017)

Energy conservation measure Electrical (kWh) Gas (MJ) Water (kL) CO2 (t)

Lighting 2,057,513 - - 2,448

HVAC 407,284 387,000 - 504

BAS 1,039,689 - - 1,237

Rain water harvesting - - 1,358 -

Co-generation 3,709,585 (25,215,000) - 3,123

Hot water boiler upgrades - 1,581,000 - 81

VSD’s and motors 22,817 - - 27

Total 7,236,888 (23,247,000) 1,358 7,420

The following energy savings and reduction in CO2 emissions were achieved on each campus.

Table 16: Energy savings achieved by Institute campus (2017)

Campus Electrical (kWh) Gas (MJ) Water (kL) CO2 (t)

Chadstone (325,671) 7,388,612 (3,127) 4,845

Moorabbin 562,210 1,016,820 8,158 2,025

Waverley (11,537) 250,877 (6,114) 552

City (422,707) (115,457) 444 -

Bulli Street (1,492) 3,315 241 29

Total (199,197) 8,544,167 (398) 7,451

Environmentally sustainable designHolmesglen routinely incorporates the following principles into the design of all new buildings on campus:• Orient buildings to maximise the benefits of solar passive heating and ventilation, while minimising costs• Select environmentally sustainable materials • Include energy efficient commissioning and maintenance regimes• Address transport considerations• Maximise the installation of:

- High efficiency air-conditioning infrastructure, including chilled beam technology automatic controls on air-conditioning systems

- Energy efficient appliances- Lighting control- Rainwater collection, storage and redistribution systems for landscape and toilet cistern purposes- Solar hot water systems- Glazing technologies and window shading

The three most recently constructed buildings at Holmesglen have all achieved a GBCA 5 star design rating.


Environmental Sustainability CommitteeThe Environmental Sustainability Committee met four times in 2017 to review environmental sustainability issues and initiatives.

The committee receives Institute data for energy, waste, water, paper, transport and procurement and makes recommendations for future projects.

The committee also conducted its annual Enviro Week to promote learner awareness.

Energy usageThe Institute has undertaken significant facility expansion each year, making it difficult to quantify the reduction in electricity and gas consumption. Additionally, not all buildings are separately metered.

All new buildings are also now air-conditioned for learner comfort, which increases energy consumption.

Table 17: Electricity consumption (2013 – 2017, kWh)

Year Chadstone Moorabbin Waverley City Bulli St Total

2013 6,744,558 4,079,816 2,091,449 1,099,008 143,554 14,158,385

2014 6,791,090 3,820,005 2,391,323 1,176,415 143,968 14,322,801

2015 5,921,318 2,798,345 2,231,028 1,184,370 132,202 12,267,263

2016 5,643,068 2,396,116 2,354,831 1,544,136 130,643 12,068,794

2017 5,317,397 2,958,326 2,343,294 1,121,429 129,151 11,869,597

Table 18: Gas consumption (2013 – 2017, MJ)


2013 17,543,366 13,655,327 5,151,461 1,131,286 57,648 37,539,088

2014 15,238,011 12,465,319 4,811,200 758,216 25,167 33,297,913

2015 16,033,287 5,344,087 5,798,757 1,230,779 21,852 28,428,762

2016 18,824,209 7,461,009 6,013,931 1,001,931 2,316 33,303,396

2017 26,212,821 8,477,829 6,264,808 886,275 5,709 41,847,442

Table 19: Water consumption (2013 – 2017, kL)


2013 35,416 14,698 6,482 2,994 148 59,738

2014 23,556 19,922 7,486 2,593 151 53,708

2015 23,744 11,263 11,544 2,612 149 49,312

2016 24,903 11,319 15,289 2,188 109 53,808

2017 21,776 8,407 9,175 2,092 350 41,800

Table 20: Rainwater tanks and water usage by Institute campus (2017)

Chadstone Moorabbin Waverley City Bulli St

Tank capacity (L) 200,000 168,000 480,000

Not applicable

to this campus

25,000

Approx. roof area (m2) 6,250 2,830 3,478 848

Total kL 11,467 5,190 6,382 1.555

Water usage: toilets (kL) 2,867 1,298 1,595 389

Water usage: gardens (kL) 8,600 3,893 4,786 1,166

Note: The mean rainfall (mm) volume for 2017 is 821.5 mm per annum (ref: Cranbourne Botanic Gardens – Bureau of Meteorology website), less 25 percent of spray, multiplied by the square metre of estimated building roof area where the tanks are installed. One mm of rainfall per m2 = one litre of water. Base estimate tanks replenished three times per annum.


TransportationHolmesglen has reduced the engine capacity of its fleet vehicles, which has resulted in fewer 6-cylinder vehicles. In 2017, these vehicles represented less than 19 percent of the fleet (compared to 36 percent in 2011).

Table 21: Vehicle fleet (2016 – 2017)

2016 2017

Petrol Diesel Petrol Diesel

Number of vehicles 62 25 70 26

Fuel usage (L) 86,546 22,363 84,686 32,652

Total greenhouse gas emissions from vehicle fleet (t) 208 60 222 69

ProcurementTo ensure the use of environmentally responsible suppliers, Holmesglen has incorporated sustainability criteria into its tender evaluation process, and as part of its overall procurement strategies.

Paper usage In 2017, the Institute used approximately 18,000 reams of paper across its print room services and all local multifunctional devices. We used approximately 2,000 fewer reams compared to the previous year – primarily due to an overall reduction in printing, and an increased use of double-sided printing.

A further 20 reams of paper were purchased in 2017, mainly for non-shared printers. Paper products purchased were:• Mainly A4 in size• Made of fibre from sustainable plantations • Elemental chlorine-free processed• Environmentally friendly in production (i.e. carbon neutral and recyclable)• Acid-free archival quality


Financial Report

29 Independent Auditor’s Report - Financial Report

31 Declaration by Board Chair

33 Comprehensive Operating Statement

34 Balance Sheet

35 Statement of Changes in Equity

36 Cash Flow Statement

37 Notes to Financial Statements

79 Independent Auditor’s Report - Statement of Performance

82 Statement of Performance

83 Disclosure Index

HOLMESGLENANNUAL REPORT 2017 FINANCIAL REPORT


28 | Annual Report 2017 Financial Report28 | Annual Report 2017


Independent Auditor’s Report To the Board of Holmesglen Institute

Opinion I have audited the consolidated financial report of Holmesglen Institute (the institute) and its controlled entities (together the consolidated entity), which comprises the:

consolidated entity and institute balance sheets as at 31 December 2017 consolidated entity and institute comprehensive operating statements for the year then

ended consolidated entity and institute statements of changes in equity for the year then ended consolidated entity and institute cash flow statements for the year then ended notes to the financial statements, including a summary of significant accounting policies declaration by Board Chair, Chief Executive and Chief Finance and Accounting Officer.

In my opinion, the financial report presents fairly, in all material respects, the financial positions of the consolidated entity and the institute as at 31 December 2017 and their financial performance and cash flows for the year then ended in accordance with the financial reporting requirements of Part 7 of the Financial Management Act and applicable Australian Accounting Standards.

Basis for Opinion

I have conducted my audit in accordance with the Audit Act 1994 which incorporates the Australian Auditing Standards. My responsibilities under that Act and those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report.

My independence is established by the Constitution Act 1975. My staff and I are independent of the institute and the consolidated entity in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. My staff and I have also fulfilled our other ethical responsibilities in accordance with the Code.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Board’s responsibilities for the financial report

The Board of the institute is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and the Financial Management Act, and for such internal control as the Board determines is necessary to enable the preparation and fair presentation of a financial report that is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Board is responsible for assessing the institute and the consolidated entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is inappropriate to do so.

30 | Annual Report 2017 Financial Report

2

Auditor’s responsibilities for the audit of the financial report

As required by the Audit Act 1994, my responsibility is to express an opinion on the financial report based on the audit. My objectives for the audit are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the institute and the consolidated entity’s internal control

evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board

conclude on the appropriateness of the Board's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the institute and the consolidated entity’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the institute and the consolidated entity to cease to continue as a going concern.

evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation

obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the institute and consolidated entity to express an opinion on the financial report. I remain responsible for the direction, supervision and performance of the audit of the institute and the consolidated entity. I remain solely responsible for my audit opinion.

I communicate with the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

MELBOURNE 13 March 2018

Charlotte Jeffries as delegate for the Auditor-General of Victoria



HOLMESGLEN INSTITUTE

FINANCIAL REPORT 31 December 2017

How this report is structured

Comprehensive operating statement 1Balance sheet 2Statements of changes in equity 3Cash flow statement 4

1. About this report1.1 Basis of preparation 51.2 Compliance 6

2. How we earned our funds2.1 Government contributions 72.2 Sale of goods and services 72.3 Other income 8

3. How we expended our funds3.1 Employee benefits 93.2 Supplies and services 93.3 Other operating expenses 93.4 Depreciation and amortisation expense 9

4. The assets we invested in4.1 Investment properties 104.2 Property, plant and equipment 11 & 124.3 Intangible assets 134.4 Investments and other financial assets 14

5. Balances from operations5.1 Other financial assets 155.2 Receivables 16 &175.3 Payables 185.4 Employee provisions 19

6. How we financed our operations6.1 Cash and deposits 206.2 Borrowings 21 & 226.3 Finance lease liability 23

7. Managing risks and uncertainties7.1 Financial instruments 24 to 297.2 Contingent assets and contingent liabilities 307.3 Fair value determination 31 to 35

Holmesglen Institute has presented its audited general purpose financial statements for the financial yearended 31 December 2017 in the following structure to provide users with the information about the Institute'sstewardship of resources entrusted to it.

Financial statements

Notes to the financial statements

HOLMESGLEN INSTITUTEFINANCIAL REPORT 31 DECEMBER 2017


FINANCIAL REPORT 31 December 2017

How this report is structured

8. Governance8.1 Responsible persons 368.2 Remuneration of executives 378.3 Related parties 38 & 398.4 Auditors remuneration 40

9. Other disclosures9.1 Other economic flows included in net result 419.2 Equity reserves 429.3 Superannuation 439.4 Commitments 449.5 Controlled entities 459.6 Events after reporting date 469.7 Application of accounting standards issued but not yet effective 47 to 49


1


Comprehensive operating statement for the financial year ended 31 December 2017

2017 2016 2017 2016Note $'000 $'000 $'000 $'000

Income from transactionsGovernment contributions - operating 2.1 68,193 53,330 67,731 52,876 Government contributions - capital 2.1 2,150 5,000 2,150 5,000 Sale of goods and services 2.2 80,309 80,836 80,309 80,836 Other income 2.3 13,559 14,067 20,278 13,649

Total income from transactions 164,211 153,233 170,468 152,361

Expenses from transactionsEmployee benefits 3.1 98,671 93,426 98,558 93,416 Depreciation and amortisation 3.4 10,144 10,015 10,144 10,015 Supplies and Services 3.2 31,867 29,474 31,521 29,240 Other operating expenses 3.3 12,479 9,943 12,411 9,862

Total expenses from transactions 153,161 142,858 152,634 142,533

Net result from transactions (net operating balance) 11,050 10,375 17,834 9,828

Other economic flows included in net resultNet gain/(loss) on non-financial assets 9.1 14,091 6,000 12,366 5,441 Net gain/(loss) on financial instruments 9.1 (58) (400) (58) (400)

Total other economic flows included in net result 14,033 5,600 12,308 5,041

Net result from continuing operations 25,083 15,975 30,142 14,869

Net result 25,083 15,975 30,142 14,869

Other economic flows – other comprehensive incomeItems that will not be reclassified to net result

Changes in physical asset revaluation surplus 9.2 72,100 - 72,100 -

Items that may be reclassified subsequently to net resultGain/(loss) on revaluation of financial assets 9.2 2,012 1,239 1,936 1,239

Items that have been reclassified to net resultTransfer to profit and loss on sale of financial assets 9.2 - - - -

Total other economic flows – Other comprehensive income 74,112 1,239 74,036 1,239

Comprehensive result 99,195 17,214 104,178 16,108

The above comprehensive operating statement should be read in conjunction with the accompanying notes.

Consolidated Institute


2


Balance Sheet as at 31 December 2017

2017 2016 2017 2016Note $'000 $'000 $'000 $'000

Assets

Financial assetsCash and deposits 6.1 40,488 21,260 37,012 9,019 Receivables 5.2 15,529 15,175 15,080 14,797 Investments 4.4 48,916 63,504 46,840 63,504

Total financial assets 104,933 99,939 98,932 87,320

Non-financial assetsOther non-financial assets 5.1 4,767 2,695 4,737 2,659 Property, plant and equipment 4.2 337,924 255,682 337,924 255,682 Intangible assets 4.3 264 863 264 863 Investment properties 4.1 104,750 90,890 82,095 69,960

Total non-financial assets 447,705 350,130 425,020 329,164

Total assets 552,638 450,069 523,952 416,484

LiabilitiesPayables 5.3 23,991 28,318 23,836 28,245 Borrowings 6.2 11,259 4,516 11,259 4,516 Provisions 5.4 14,684 13,726 14,682 13,726

Total liabilities 49,934 46,560 49,777 46,487

Net assets 502,704 403,509 474,175 369,997

EquityContributed capital 9.2 122,807 122,807 122,807 122,807 Physical asset revaluation surplus 9.2 216,413 144,313 216,413 144,313 Financial assets available-for-sale revaluation surplus 9.2 3,516 1,504 3,440 1,504 Accumulated surplus/(deficit) 9.2 159,968 134,885 131,515 101,373

Net worth 502,704 403,509 474,175 369,997

Commitments for expenditure 9.4- - -

The above balance sheet should be read in conjunction with the accompanying notes.



3


Statement of Changes in Equity for the year ended 31 December 2017

Consolidated

Physical asset revaluation

surplus

Available for sale

financial asset revaluation

surplus

Accumulated surplus

Contributions by owner

Total

Note $'000 $'000 $'000 $'000 $'000At 1 January 2016 9.2 144,313 265 118,910 122,807 386,295

Net result for the year 15,975 15,975 Changes in physical asset revaluation surplus 9.2 - Transfer to profit and loss on sale of financial assets 9.2 - Gain/(loss) on revaluation of financial assets 9.2 1,239 1,239

Year ended 31 December 2016 9.2 144,313 1,504 134,885 122,807 403,509 Net result for the year 25,083 25,083 Changes in physical asset revaluation surplus 9.2 72,100 72,100 Gain/(loss) on revaluation of financial assets 9.2 2,012 2,012

Year ended 31 December 2017 9.2 216,413 3,516 159,968 122,807 502,704

Institute

Physical asset revaluation

surplus

Available for sale

financial asset revaluation

surplus

Accumulated surplus

Contributions by owner

Total

Note $'000 $'000 $'000 $'000 $'000At 1 January 2016 9.2 144,313 265 86,504 122,807 353,889

Net result for the year 14,869 14,869 Changes in physical asset revaluation surplus 9.2 - Transfer to profit and loss on sale of financial assets 9.2 - Gain/(loss) on revaluation of financial assets

9.2 1,239 1,239 Year ended 31 December 2016 9.2 144,313 1,504 101,373 122,807 369,997

Net result for the year 30,142 30,142 Changes in physical asset revaluation surplus 9.2 72,100 72,100 Gain/(loss) on revaluation of financial assets 9.2 1,936 1,936

Year ended 31 December 2017 9.2 216,413 3,440 131,515 122,807 474,175

The statement of changes in equity should be read in conjunction with the notes to the financial statements.


4


Cash Flow Statement for the year ended 31 December 2017

2017 2016 2017 2016Note $'000 $'000 $'000 $'000

Cash flows from operating activitiesReceipts

Government contributions - operating 67,476 52,664 67,015 52,210 Government contributions - capital 2,150 5,000 2,150 5,000 User fees and charges received 81,649 88,266 79,703 86,526 Goods and services tax recoverable 6,101 4,390 6,024 4,295 Interest received 504 617 406 438 Dividends received 2,876 1,791 2,861 1,772 Other receipts 8,751 6,426 17,311 7,571

Total receipts 169,507 159,154 175,470 157,812

PaymentsPayments to suppliers and employees (146,689) (134,481) (146,071) (134,011) Interest and other costs of finance paid (17) - (17) - Goods and services tax paid (7,402) (7,022) (7,218) (6,512)

Total payments (154,108) (141,503) (153,306) (140,523)

Net cash flows from/(used in) operating activities 6.1.1 15,399 17,651 22,164 17,289

Cash flows from investing activitiesPayments for managed investments (2,000) (20,000) - (20,000) Proceeds from sale of investments 18,806 - 18,806 - Proceeds from repayment of loans receivable - - - - Payments for non-financial assets (12,306) (7,959) (12,306) (7,959) Proceeds from sale of non-financial assets 354 3,591 354 236

Net cash provided by/(used in) investing activities 4,854 (24,368) 6,854 (27,723)

Cash flows from financing activities Repayment of Finance Lease (210) - (210) - Advance from Government - 109 - 109

Repayment of loan (815) - (815) -

Net cash provided by/(used) in financing activities (1,025) 109 (1,025) 109

Net increase (decrease) in cash and cash equivalents 19,228 (6,608) 27,993 (10,325)

Cash and cash equivalents at the beginning of the financial year 21,260 27,868 9,019 19,344

Cash and cash equivalents at the end of the financial year 6.1 40,488 21,260 37,012 9,019

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



5

HOLMESGLEN INSTITUTENotes to the financial statements

1 About this report

These financial statements are presented in Australian dollars, the functional and presentation currency of theInstitute and the Consolidated Group, and have been prepared in accordance with the historical costconvention unless a different measurement basis is specifically disclosed in notes associated with the itemmeasured on that different basis. Amounts in the financial report have been rounded to the nearest thousanddollars, unless otherwise stated.

The Institute is a statutory body corporate, established pursuant to an Act made by the Victorian Governmentunder the Education and Training Reform Act 2006 Section 3.1.12 4(a) .

Its registered office and principal address is:Holmesglen InstituteCnr Batesford and Warrigal RoadHolmesglen, Victoria, 3148.

1.1 Basis of preparation

These financial statements cover the Institute and its controlled entities as an individual reporting entity andinclude all the controlled activities of the Institute.

Transactions and balancesForeign currency transactions are translated into functional currency using the exchange rates prevailing atthe date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate.Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of thetransaction. Non-monetary items measured at fair value are reported at the exchange rate at the date whenfair values were determined.

Foreign currency translation differences are recognised in Comprehensive Operating Statement, in the periodin which they arise.

The accrual basis of accounting has been applied in the preparation of these financial statements wherebyassets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate,regardless of when cash is received or paid.

Judgements, estimates and assumptions are required to be made about the carrying values of assets andliabilities that are not readily apparent from other sources. The estimates and associated assumptions arebased on professional judgements derived from historical experience and various other factors that arebelieved to be reasonable under the circumstances. Actual results may differ from these estimates.

The estimates and associated assumptions are reviewed on an ongoing basis. Revisions to accountingestimates are recognised in the period in which the estimate is revised and also in future periods that areaffected by the revision.

Judgements made by management in the application of Australian Accounting Standards (AAS) that havesignificant effects on the financial statements and estimates relate to:• the fair value of land, buildings, infrastructure, plant and equipment (refer to note 4.2); • actuarial assumptions for employee benefit provisions based on likely tenure of existing staff, patterns ofleave claims, future salary movements and future discount rates (refer to note 5.4).


6


1 About this report

Basis of consolidation

Funding risk

Goods and Services Tax (GST)Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

These general purpose financial statements have been prepared in accordance with the FinancialManagement Act 1994 (FMA) and applicable Australia Accounting Standards (AAS) which includeInterpretations, issued by the Australian Accounting Standards Board (AASB). In particular, they are presentedin a manner consistent with the requirements of the AASB 1049 Whole of Government and GeneralGovernment Sector Financial Reporting .

For the purposes of preparing financial statements, the Institute is classed as a not-for-profit entity. Whereappropriate, those AAS paragraphs applicable to not-for-profit entities have been applied.

Accounting policies are selected and applied in a manner which ensures that the resulting financialinformation satisfies the concepts of relevance and reliability, thereby ensuring that the substance of theunderlying transactions or other events is reported. Accounting policies applied are disclosed in sectionswhere the related accounting balance or financial statement matter is disclosed.

1.1 Basis of preparation (continued)

Funding risk is the risk of over reliance on a particular funding source to the extent that a change in thatfunding source could impact on the operating results of the current year and future years.

The Institute has substantial economic dependency on Government operating and capital contributions.

The Institute manages funding risk by continuing to diversify and increase income from commercial activities,both domestically and offshore.

There has been no significant change in the Institute’s exposure, or its objectives, policies and processes formanaging funding risk or the methods used to measure this risk from the previous reporting period.

1.2 Compliance information

In preparing consolidated financial statements for the Institute, all material transactions and balancesbetween consolidated entities are eliminated.

In accordance with AASB 10 Consolidated Financial Statements , control exists when an entity is exposed to,or has rights to, variable returns from its involvement with the entity and has the ability to affect those returnsthrough its power over the entity. The financial statements of entities are included in the consolidatedfinancial statements from the date on which control commences until the date on which control ceases.


7


2. HOW WE EARNED OUR FUNDS

2017 2016 2017 2016Note $'000 $'000 $'000 $'000

2.1 Government contributions

State government - contestable and fee concessions 49,423 42,567 49,423 42,567 Other contributions by Commonwealth Government 1,997 1,985 1,997 1,985 Other contributions 534 654 72 200 Other contributions by State Government 16,239 8,124 16,239 8,124 Total government contributions - operating 68,193 53,330 67,731 52,876

Government contributions - capital State-capital 2,150 5,000 2,150 5,000 Total government contributions - capital 2,150 5,000 2,150 5,000

Total government contributions 70,343 58,330 69,881 57,876

• the Institute obtains control of the contributions• right to receive contributions

• the amount of the contribution can be measured reliably.

2.2 Sale of goods and services

Student fees and charges 11,537 10,406 11,537 10,406 Student fees and charges ( Fee Help) 9,312 13,306 9,312 13,306 Fee for service - Government 2,093 1,525 2,093 1,525 Fee for service - International operations - onshore 33,331 32,144 33,331 32,144 Fee for service - International operations - offshore 2,667 2,286 2,667 2,286 Fee for service - Training programs 17,546 17,472 17,546 17,472 Total fees and charges 76,486 77,139 76,486 77,139

Other non-course fees and chargesSale of goods and services 3,823 3,697 3,823 3,697 Total non-course fees 3,823 3,697 3,823 3,697

Total fees and charges 80,309 80,836 80,309 80,836


Student fees and chargesStudent fees and charges revenue is recognised by reference to the percentage completion of education and training services provided. Wherestudent fees and charges revenue has been clearly received in respect of courses or programs to be delivered in the following year, any non-refundable portion of the fees are treated as revenue in the year of receipt and the balance as revenue in advance.

Fee for serviceFee for service revenue is recognised by reference to the percentage completion of each contract, i.e. in the reporting period in which the servicesare rendered. Where fee for service revenue of a reciprocal nature has been clearly received in respect of programs or services to be delivered inthe following year, such amounts are disclosed as revenue in advance.

Government contributions are recognised as revenue in the period when the following conditions are met:

Revenue from sale of goodsRevenue from sale of goods is recognised by the Institute when:• the significant risks and rewards of ownership of the goods have been transferred to the buyer;• the Institute retains neither continuing managerial involvement to the degree usually associated with ownership nor effective controlover the goods sold;• the amount of revenue and the costs incurred and to be incurred in respect of the transactions can be reliably measured; and• it is probable that the economic benefits associated with the transaction will flow to the Institute.

• the economic benefit comprising the contribution will flow to the Institute; and


8


2. HOW WE EARNED OUR FUNDS

2017 2016 2017 2016Note $'000 $'000 $'000 $'000


2.3 Other incomeDividends/Distributions 2,779 2,172 2,753 2,172 Interest on bank and other cash deposits 521 612 434 428 Rental income - Investment properties 5,486 5,364 3,740 3,622 Rental income - other 2,119 2,313 2,719 2,913 Donations, bequests and contributions 78 5 7,078 5 Other (car parking fees, management fees etc) 2,576 3,601 3,554 4,509 Total other income 13,559 14,067 20,278 13,649

Dividends/Distributions are recognised when the Institute's right to receive payment is established.

Rental income is recognised on a time proportional basis and is brought to account when the Institute's right to receive the rental is established.

Donations, bequests and contributions are recognised when received and the amount can be measured reliably.

Interest income includes interest received on the Institute's operating bank account and at call deposits with Treasury Corporation of Victoria. Interest income is recognised using the effective interest method which allocates the interest over the relevant period.


9


3. HOW WE EXPENDED OUR FUNDS

2017 2016 2017 2016Note $'000 $'000 $'000 $'000

3.1 Employee benefits` Salaries, wages, overtime and allowances 83,688 78,963 83,593 78,954

Superannuation 7,649 6,503 7,640 6,502 Payroll tax 4,212 3,909 4,207 3,909 Long service leave 1,703 2,764 1,701 2,764 Termination benefits 517 286 517 286 Annual leave 255 252 255 252 Other 647 749 645 749 Total employee benefits 98,671 93,426 98,558 93,416

3.2 Supplies and servicesPurchase of supplies and consumables 4,776 4,387 4,776 4,387 Communication expenses 863 781 860 781 Utilities 3,013 2,359 2,758 2,186 Minor equipment 1,846 1,214 1,846 1,214 Fees and charges 5,341 5,118 5,301 5,116 Contract and other services 11,586 12,499 11,561 12,497 Building repairs and maintenance 4,188 2,932 4,165 2,875 Cost of goods sold/distributed (ancillary trading) 254 184 254 184 Total supplies and services 31,867 29,474 31,521 29,240

3.3 Other operating expensesInterest on finance leases 17 - 17 - Marketing and promotional expenses 2,432 1,982 2,432 1,982 Audit fees and services 8.4 210 152 189 131 Bad and doubtful debts from transactions 2,161 735 2,161 735 Staff development 773 577 773 577 Travel and motor vehicle expenses 1,077 1,031 1,077 1,031 Lease expense 2,960 3,001 2,960 3,001 Other expenses 2,849 2,465 2,802 2,405 Total other operating expenses 12,479 9,943 12,411 9,862

Other operating expenses are recognised in the reporting period in which they are incurred.

3.4 Depreciation and amortisation expenseBuildings 7,932 7,850 7,932 7,850 Leasehold improvement 164 410 164 410 Plant and equipment 509 479 509 479 Cultural assets 5 4 5 4 Motor Vehicles 464 420 464 420 Library collections 271 270 271 270 Computer Equipment 629 413 629 413

Total depreciation 9,974 9,846 9,974 9,846

Amortisation of non-current assetsSoftware 170 169 170 169

Total amortisation 170 169 170 169 Total depreciation and amortisation 10,144 10,015 10,144 10,015

Supplies and services are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of anyinventories held for distribution are expensed when the inventories are distributed.


Employee expenses include all costs related to employment, including wages and salaries, superannuation, payroll tax, fringe benefits tax,leave entitlements, termination payments and WorkCover premiums. Superannuation disclosed above are employer contributions that arepaid or payable during the reporting period.

Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee acceptsvoluntary redundancy in exchange for these benefits. The Institute recognises termination benefits when it is demonstrably committed toeither terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providingtermination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balancesheet date are discounted to present value.


10


4. THE ASSETS WE INVESTED IN

2017 2016 2017 2016Note $'000 $'000 $'000 $'000

4.1 Investment properties

At Fair valueOpening balance at 1 January 90,890 86,676 69,960 65,910 Transfer of investment property to property, plant and equipment

- (1,300) - (1,300) Additions - - - - Net gain/ (loss) from fair value adjustments 13,860 5,514 12,135 5,350 Closing balance at 31 December 104,750 90,890 82,095 69,960

There were no changes in valuation techniques throughout the period to 31 December 2017

The fair values of the Consolidated entity's investment properties at 31 December 2017 have been arrived at on the basis of an independent valuation carried out by independent valuers. The valuation was determined by reference to market evidence of transaction prices for similar properties with no significant unobservable adjustments, in the same location and condition and subject to similar leases and other contracts.

The Valuer General Victoria (VGV) appointed O'Briens Valuers & Property Consultants as the Institute's independent valuer.


Investment properties represent properties held to earn rentals or for capital appreciation or both. Investment properties exclude properties held to meet service delivery objectives of the Institute.

Investment properties are initially recognised at cost. Costs incurred subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of the originally assessed performance of the asset will flow to the Institute.

Subsequent to initial recognition at cost, investment properties are re-valued to fair value with changes in the fair value recognised as other economic flows in the comprehensive operating statement in the period in which they arise. Fair values are determined based on a market comparable approach that reflects recent transaction prices for similar properties. These properties are neither depreciated nor tested for impairment.


11



4.2 Property, plant and equipment

Land

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Consolidated $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000At 1 January 2016

- Cost - - - 360 3,980 - 2,875 1,893 2,189 11,297 - Valuation 56,068 213,886 2,204 - 2,735 436 - - 3,367 278,696 Accumulated depreciation - (20,150) (1,630) - (3,980) - (1,631) (1,282) (4,906) (33,579) Net book amount 56,068 193,736 574 360 2,735 436 1,244 611 650 256,414

Year ended 31 December 2016

Opening net book amount 56,068 193,736 574 360 2,735 436 1,244 611 650 256,414 Additions - 29 5,289 518 596 - 1,527 7,959 Disposals - - - - (38) (110) - - (148) Net gain/(loss) on non-financial assets - - - - - 3 - - - 3 Depreciation expense (7,850) (410) - (479) (4) (420) (270) (413) (9,846) Transfer to Investment Properties 975 325 - - - - - - - 1,300 Transfer from assets under construction (9) 9 - Closing net book amount 57,043 186,240 164 5,640 2,745 435 1,310 341 1,764 255,682

At 31 December 2016- Cost - 29 - 5,640 4,364 - 2,895 1,893 3,716 18,537 - Valuation 57,043 214,211 2,204 - 2,735 435 - - 3,367 279,995 Accumulated depreciation - (28,000) (2,040) - (4,354) - (1,585) (1,552) (5,319) (42,850) Net book amount 57,043 186,240 164 5,640 2,745 435 1,310 341 1,764 255,682

Year ended 31 December 2017

Opening net book amount 57,043 186,240 164 5,640 2,745 435 1,310 341 1,764 255,682 Additions 16 4,635 - 11,708 923 85 1,055 - 1,388 19,810 Disposals - - - - (2) - (132) - (3) (137) Net revaluation increments/(decrements) 59,046 11,914 - - 1,353 - - - 217 72,530 Net gain/(loss) on non-financial assets - - - - - 13 - - - 13 Depreciation expense - (7,932) (164) - (509) (5) (464) (271) (629) (9,974) Transfer from Investment Properties - - - - - - - - - - Transfer from assets under construction - 5,594 - (5,640) 46 - - - - - Closing net book amount 116,105 200,451 - 11,708 4,556 528 1,769 70 2,737 337,924

At 31 December 2017- Cost - - 2,205 11,708 275 85 3,097 1,893 596 19,859 - Valuation 116,105 200,451 - - 4,286 443 - - 2,152 323,437 Accumulated depreciation - - (2,205) - (5) - (1,328) (1,823) (11) (5,372) Net book value at the end of the financial year 116,105 200,451 - 11,708 4,556 528 1,769 70 2,737 337,924

Initial recognition

Subsequent measurement

The consolidated figures in the above table for property, plant and equipment are the same as the Institute as an individual entity.

Items of property, plant and equipment, are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment. Where an asset is received for no or nominal consideration, the cost is the asset’s fair value at the date of acquisition.

The cost of constructed non-financial physical assets includes the cost of all materials used in construction, direct labour on the project and an appropriate proportion of variable and fixed overheads.

The cost of a leasehold improvements is capitalised and depreciated over the shorter of the remaining term of the lease or their estimated useful lives.

The initial cost for non-financial physical assets under a finance lease is measured at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease.

Property, plant and equipment are subsequently measured at fair value less accumulated depreciation and impairment. Fair value is determined with regard to the asset’s highest and best use (considering legal or physical restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset) and is summarised by asset category.

Non-specialised land, non-specialised buildings and artworks are valued using the market approach, whereby assets are compared to recent comparable sales or sales of comparable assets that are considered to have nominal value.

Specialised land and specialised buildings: The market approach is used for specialised land, and this is then adjusted for the community service obligation (CSO) to reflect the specialised nature of the land being valued.


12



Depreciation methods and rates used for each class of depreciable assets are:

Class of assets Rates 2017Buildings 1.67% to 14.29% 1.67% to 100%Computer equipment 9.86% to 50% 20% to 37.45%Cultural assets 1% to 1.19% 1%Motor Vehicles 8% to 20% 8% to 20%Library collections 14.28% 14.28%Plant and equipment 3.33% to 44.99% 3.33% to 44.44%

Leasehold improvements are depreciated over the shorter of the lease term and their useful lives.

4.2 Property, plant and equipment (continued)

Non-financial assets, including items of property, plant and equipment, are tested for impairment whenever there is an indication that the asset may be impaired.

The assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off as an ‘other economic flow’, except to the extent that it can be debited to an asset revaluation surplus amount applicable to that class of asset.

If there is an indication that there has been a reversal in impairment, the carrying amount is increased to its recoverable amount. However this reversal can not increase the asset’s carrying amount above what would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years.

The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell.

For the majority of the Institute’s specialised buildings, the depreciated replacement cost method is used, adjusting for the associated depreciation.

The fair value of plant, equipment and vehicles, is normally determined by reference to the asset’s depreciated replacement cost.

Non-current physical assets measured at fair value are revalued in accordance with Financial Reporting Directions (FRDs) issued by the Minister for Finance.

Refer to Note 7.3 for additional information on the fair value determination of property, plant and equipment.

Depreciation is provided on property, plant and equipment, including freehold buildings but excluding land.

Depreciation is generally calculated on a straight-line basis, at rates that allocate the asset’s value, less any estimated residual value, over its estimated useful life. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straight-line method.

The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that is also equally applicable to market participants.

Rates 2016

Revaluations of non-financial physical assets

Impairment

The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period, and adjustments made where appropriate.


13



4.3 Intangible assets

2017 2016 2017 2016

Software $'000 $'000 $'000 $'000

Opening balance 1,720 1,720 1,720 1,720

(429) - (429) -

- - - -

Disposal - - - -

Closing balance 1,291 1,720 1,291 1,720

Accumulated amortisation and impairment

Opening balance (857) (688) (857) (688)

Amortisation charge (170) (169) (170) (169)

- - - -

Disposal - - - -

Closing balance (1,027) (857) (1,027) (857)

Net carrying amount at end of the year 264 863 264 863

ImpairmentIntangible assets with finite useful lives are tested for impairment whenever an indication of impairment is identified.

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverableamount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by a charge to the ComprehensiveOperating Statement.

The Institute has capitalised software development expenditure for the development of its student management system. The Valuer GeneralVictoria (VTG) carried out a valuation at 31 December 2017 and has determined the future useful life is 3 years.


Initial recognitionPurchased intangible assets are initially recognised at cost. When the recognition criteria of AASB 138 Intangible Assets are met, internallygenerated intangible assets are recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulatedamortisation and accumulated impairment losses. Amortisation begins when the asset is available for use, that is, when it is in the location andcondition necessary for it to be capable of operating in the manner intended by management.

An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, andonly if, all of the following are demonstrated:• the technical feasibility of completing the intangible asset so that it will be available for use or sale;• the intention to complete the intangible asset and use or sell it;• the ability to use or sell the asset;• the intangible asset will generate probable future economic benefits;• the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and• the ability to measure reliably the expenditure attributable to the intangible asset during its development.

Subsequent measurementIntangible assets with finite lives are amortised on a straight basis over their useful lives. The amortisation period and the amortisation method foran intangible asset with a finite useful life are reviewed at the end of each annual reporting period.

Net revaluation increments/ (decrements)

Amortisation charge

Net revaluation increments/ (decrements)


14



Institute

2017 2016 2017 2016$'000 $'000 $'000 $'000

4.4 Investments

Current investmentsAvailable-for-sale financial assets:

48,916 63,504 46,840 63,504 Total equities and managed investments 48,916 63,504 46,840 63,504

48,916 63,504 46,840 63,504 48,916 63,504 46,840 63,504

Consolidated

Total current investments

Victorian Funds Management Corporation - managed investments

15


5. BALANCES FROM OPERATIONS

2017 2016 2017 2016Note $'000 $'000 $'000 $'000

5.1 Other non - financial assets

CurrentInventories - supplies and consumables at cost 58 66 58 66Prepayments 4,709 2,629 4,679 2,593Total current other non-financial assets 4,767 2,695 4,737 2,659

Inventories held for distribution are measured at cost.


Prepayments represent payments in advance of receipt of goods and services or that part of expenditure made in one accounting periodcovering a term extending beyond that period.


16



2017 2016 2017 2016$'000 $'000 $'000 $'000

5.2 Receivables

Contractual4,022 4,800 3,588 4,485

Provision for doubtful contractual receivables (2,555) (668) (2,555) (668) Other receivables 10 10 10 10 Revenue receivable 13,607 10,592 13,592 10,529 Total contractual 15,084 14,734 14,635 14,356 StatutoryAmount receivable from Victorian Government - - - - GST input tax credit recoverable 445 441 445 441 Total receivables 15,529 15,175 15,080 14,797 Represented by Current receivables 15,529 15,175 15,080 14,797 Non-current receivables - - - -

15,529 15,175 15,080 14,797

Movement in the provision for doubtful contractual receivables

Balance at the beginning of the year 668 668 668 668 Increase in provision recognised in net result 1,887 - 1,887 - Balance at the end of the year 2,555 668 2,555 668

Sale of goods and services


Receivables consist of:• statutory receivables, which predominantly include amounts owing from the Victorian Government and GST input taxcredits recoverable; and• contractual receivables, which include debtors in relation to goods and services, loans to third parties, accrued investmentincome, and finance lease receivables.

Receivables are stated inclusive of the amount of GST receivable. Receivables that are contractual are classified as financialinstruments. Statutory receivables are not classified as financial instruments.

Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interestmethod, less an allowance for impairment.

Doubtful debts Receivables are assessed for bad and doubtful debts on a regular basis. A provision for doubtful debts is recognised whenthere is objective evidence that the debts may not be collected and bad debts are written off when identified. In assessingimpairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement isapplied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136Impairment of Assets.

A provision is made for estimated irrecoverable amounts from the sale of goods when there is objective evidence that anindividual receivable is impaired. The increase in the provision for the year is recognised in the comprehensive operatingstatement.

Bad debts considered as written off by mutual consent are classified as a transaction expense. Bad debts that are notwritten off, are included in the provision for doubtful debts, and classified as other economic flows in the net result.


17



5.2 Receivables (continued)

Ageing analysis of contractual receivables

Consolidated

Carrying amount

Not past due and

not impaired

Less than 1 month

1-3 months

3 months – 1 year

1-5 years

2017 $’000 $’000 $’000 $’000 $’000 $’000Trade receivables 4,022 - 1,081 104 1,530 1,307 Other receivables 10 10 - - - -Revenue receivables 13,607 13,607 - - - -Total 17,639 13,617 1,081 104 1,530 1,307

2016Trade receivables 4,800 315 764 1,448 2,273 -Other receivables 10 10 - - - -Revenue receivables 10,592 10,592 - - - -Total 15,402 10,917 764 1,448 2,273 -

Institute2017Trade receivables 3,588 - 647 104 1,530 1,307 Other receivables 10 10 - - - -Revenue receivables 13,592 13,592 - - - -Total 17,190 13,602 647 104 1,530 1,307

2016Trade receivables 4,485 - 764 1,448 2,273 -Other receivables 10 10 - - - -Revenue receivables 10,529 10,529 - - - -Total 15,024 10,539 764 1,448 2,273 -

Note: The disclosures above excludes statutory receivables (e.g., amounts owing from Victorian Government and GST taxes payable).

The average credit period on sales of goods is 30 days. No interest is charged on receivables.

There are no financial assets that have their terms renegotiated so as to prevent them from being past due or impaired, andthey are stated at the carrying amounts as indicated.

Past due but not impaired


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2017 2016 2017 2016Note $'000 $'000 $'000 $'000

5.3 Payables

CurrentContractual

Supplies and services 9,380 9,780 9,311 9,724 Revenue in advance 14,611 18,538 14,525 18,521

StatutoryGST payable to the ATO - - - -

Total current payables 23,991 28,318 23,836 28,245

Consolidated $’000 $’000 $’000 $’000 $’000 $’000 $’000

2017Supplies and services 9,380 9,380 9,380 - - - -Other payables - - - -Total 9,380 9,380 9,380 - - - - 2016Supplies and services 9,780 9,780 9,780 - - - -Other payables - - - - - - -Total 9,780 9,780 9,780 - - - -

Institute2017Supplies and services 9,311 9,311 9,311 - - - -Other payables - - - - - - -Total 9,311 9,311 9,311 - - - - 2016Supplies and services 9,724 9,724 9,724 - - - -Other payables - - - - - - -Total 9,724 9,724 9,724 - - - -

Note: The disclosures above excludes statutory payables (e.g., amounts owing to the Victorian Government and GST taxes payable).

Notes: The average credit period is 30 days. No interest is charged on the other payables. Terms and conditions of amounts payable to othergovernment agencies vary according to a particular agreement with that agency.

Institute

Payables consist of:• contractual payables, such as accounts payable, and unearned income. Accounts payable represent liabilities for goods and services providedto the Institute prior to the end of the financial year that are unpaid, and arise when the Institute becomes obliged to make future payments inrespect of the purchase of those goods and services; and• statutory payables, such as goods and services tax and fringe benefits tax payables.

Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost.

Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and notincluded in the category of financial liabilities at amortised cost, because they do not arise from a contract.

Maturity Analysis of contractual payablesCarrying amount

Nominal amount

Less than 1 month

1-3 months3 months -

1 year1-5 years 5+ years

Consolidated


19



2017 2016 2017 2016Note $'000 $'000 $'000 $'000

5.4 Employee benefits provision

Current ProvisionsEmployee benefits Annual leave Unconditional and expected to wholly settle within 12 months 2,308 2,053 2,308 2,053 Long service leave Unconditional and expected to wholly settle within 12 months 715 745 715 745 Unconditional and expected to wholly settle after 12 months 8,229 7,665 8,229 7,665 Sub total 11,252 10,463 11,252 10,463

Provision for on costs Annual leave Unconditional and expected to wholly settle within 12 months 445 320 445 320 Long service leave Unconditional and expected to wholly settle within 12 months 112 117 112 117

1,289 1,197 1,289 1,197 Total current provisions 13,098 12,097 13,098 12,097

Non-current ProvisionsLong service leave

1,372 1,409 1,370 1,409 Long service leave - on costs

214 220 214 220 Total non-current provisions 1,586 1,629 1,584 1,629 Total provisions 14,684 13,726 14,682 13,726

Reconciliation of movement in on-cost provisionConsolidated Institute

Carrying amount at the start of the year 1,854 1,854Additional provisions recognised 206 206Carrying amount at the end of the year 2,060 2,060Current 1,846 1,846Non-current 214 214

Provisions are made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for servicesrendered to the reporting date.

Wages, salaries and annual leaveLiabilities for wages and salaries, including non-monetary benefits annual leave are all recognised in the provision for employee benefits as‘current liabilities’, because the Institute does not have an unconditional right to defer settlements of these liabilities.

Depending on the expectation of the timing of settlement, liabilities for wages and salaries, annual leave and sick leave are measured at:• undiscounted value – if the Institute expects to wholly settle within 12 months; or• present value – if the Institute does not expect to wholly settle within 12 months.

Unconditional LSL is disclosed as a current liability, even where the Institute does not expect to settle the liability within 12 months becauseit will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.The components of the current LSL liability are measured at:• nominal value (undiscounted value) – component that is expected to be wholly settled within 12 months; and• present value (discounted value) – component that is not expected to be wholly settled within 12 months.

Conditional LSL is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until theemployee has completed the requisite years of service. This non-current LSL liability is measured at present value. Any gain or loss followingrevaluation of the present value of non-current LSL liability is recognised as a transaction, except to the extent that a gain or loss arises dueto changes in the bond interest rate for which it is then recognised as an other economic flow. The discount rate applied is as advised by theMinister of Finance.

Provision for on-costs such as payroll tax, workers compensation and superannuation are recognised separately from the provision ofemployee benefits.


Unconditional and expected to wholly settle after 12 months

Conditional and expected to wholly settle after 12 months

Conditional and expected to wholly settle after 12 months


20


6. HOW WE FINANCED OUR OPERATIONS

2017 2016 2017 2016$'000 $'000 $'000 $'000

Cash at bank and on hand 2,388 2,160 2,012 2,019 Deposits at call - Treasury Corporation of Victoria 38,100 19,100 35,000 7,000 Total cash and deposits 40,488 21,260 37,012 9,019

6.1.1 Reconciliation of operating result to net cash flows from operating activities

Net result for the year 25,083 15,975 30,142 14,869

Non cash movements:Depreciation and amortisation of non-current assets 10,144 10,015 10,144 10,015 Net (gain) / loss on sale of non-current assets (218) (483) (218) (88)Net (gain) / loss on disposal of financial investments (206) - (206) - Fair value gains on other non- financial assets (13,873) (5,517) (12,148) (5,353)Net (gain)/loss on financial liabilities at amortised cost 264 400 264 400 Total non-cash flows in operating result (3,889) 4,415 (2,164) 4,974

Movements in operating assets and liabilitiesDecrease / (increase) in trade receivables (354) (5,606) (283) (5,540)Decrease / (increase) in inventories 8 8 8 8 Decrease / (increase) in other assets (2,080) (233) (2,086) (237)Increase / (decrease) in payables (4,327) 1,406 (4,409) 1,529 Increase / (decrease) in employee benefits 958 1,686 956 1,686 Total movement in operating assets and liabilities (5,795) (2,739) (5,814) (2,554)

Net cash flow from/(used in) operating activities 15,399 17,651 22,164 17,289

Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financingactivities which is recoverable from, or payable to, the taxation authority are presented as operating cash flows.

6.1 Cash and deposits

Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call, which are held for the purpose of meeting short term cash commitments rather than for investment purposes, and which are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.



21



2017 2016 2017 2016Note $'000 $'000 $'000 $'000

6.2 Borrowings

Current

Advances from Government 815 - 815 - Finance lease liabilities 1,465 - 1,465 - Non-CurrentAdvances from Government 3,903 5,533 3,903 5,533 Impact of revaluing at fair value (753) (1,017) (753) (1,017) Finance lease liabilities 5,829 - 5,829 - Total borrowings 11,259 4,516 11,259 4,516

Finance lease liabilities

Maturity Analysis of borrowings

Consolidated $’000 $’000 $’000 $’000 $’000 $’0002017Advances from Government 3,965 4,718 - - - 4,075 643 Total 3,965 4,718 - - - 4,075 643 2016Advances from Government 4,516 5,533 - - - 4,075 1,458 Finance lease liabilities - - - - - - - Total 4,516 5,533 - - - 4,075 1,458

Institute2017Advances from Government 3,965 4,718 - - - 4,075 643 Total 3,965 4,718 - - - 4,075 643 2016Advances from Government 4,516 5,533 - - - 4,075 1,458 Total 4,516 5,533 - - - 4,075 1,458

+5 yearsCarrying amount

Nominal amount

Less than 1 month

1-3 months

3 months – 1 year 1-5 years


Advances from GovernmentAdvances from Government are initially measured at fair value, net of transaction costs. Borrowings are subsequently measured at amortisedcost. Any difference between the proceeds net of transaction costs and their redemption amount is recognised in the ComprehensiveOperating Statement over the period of borrowings using the effective interest rate method.

At the commencement of the lease term, finances leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payment, each determined at the inception of the lease. The leased asset is accounted for as a non-financial physical asset and depreciated over the shorter of the estimated useful life of the asset or the term of the lease. Minimum finance lease payments are apportioned between the reduction of the outstanding lease liability and the periodic finance expenses which is calculated using the interest rate implicit in the lease and charged directly tie the comprehensive operating statement. Refer to note 6.3 for comparison minimum future lease payment and minimum nominal future lease payment.


22



2017 2016 2017 2016$'000 $'000 $'000 $'000

Interest expenseInterest on advances from Government - - - - Interest on finance leases 17 - 17 - Total interest expenses 17 - 17 -

6.2 Borrowings (continued)


Interest expense includes costs incurred in connection with the borrowing of funds and includes interest on bank overdrafts and short termand long term borrowings, amortisation of discounts or premiums relating to borrowings, interest component of finance leases repayments,and the increase in financial liabilities and non-employee provisions due to the unwinding of discounts to reflect the passage of time.

Interest expense is recognised in the period in which it is incurred.

23



2017 2016 2017 2016Finance lease liability payable $000 $000 $000 $000

Not longer than one year 1,567 - 1,465 - Longer than one year but not longer than five years 6,006 - 5,829 - Longer than five years - - - - Minimum future lease payments 7,573 - 7,294 - Less future finance charges (279) - - - Present value of minimum lease payments 7,294 - 7,294 - Included in the financial statements as:Current finance lease liability - - 1,465 - Non-current finance lease liability - - 5,829 - Total - - 7,294 -

6.3 Finance lease liability

Minimum future lease payments

Present value of minimum future lease

payments


24


7. MANAGING RISKS AND UNCERTAINTIES

7.1 Financial instruments

Categories of financial instruments

2017 2016 2017 2016Loans and receivables and cash $'000 $'000 $'000 $'000 Cash and deposits 40,488 21,260 37,012 9,019 Trade receivables 4,032 4,810 3,598 4,495 Revenue receivable 13,607 10,592 13,592 10,529 Available for sale Equity and managed investments 48,916 63,504 46,840 63,504 Total contractual financial assets 107,043 100,166 101,042 87,547

Loans and payables and cash Supplies and services 9,380 9,780 9,311 9,724 Other payables - - - -At amortised cost Advances from Government 3,965 4,516 3,965 4,516 Finance lease liability 7,294 - 7,294 -Total contractual financial liabilities 20,639 14,296 20,570 14,240

Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity.


Categories of financial instruments

Loans and receivables and cash are financial instrument assets with fixed and determinable payments that are notquoted on an active market. These assets and liabilities are initially recognised at fair value plus any directlyattributable transaction costs. Subsequent to initial measurement, loans and receivables are measured at amortisedcost using the effective interest method (and for assets, less any impairment). The Institute recognises the followingassets in this category:• cash and deposits and• receivables (excluding statutory receivables)

Available-for-sale financial instrument assets are those designated as available-for-sale or not classified in any othercategory of financial instrument asset. Such assets are initially recognised at fair value. Subsequent to initialrecognition, they are measured at fair value with gains and losses arising from changes in fair value, recognised in‘Other economic flows – other comprehensive income’ until the investment is disposed. Movements resulting fromimpairment and foreign currency changes are recognised in the net result as other economic flows. On disposal, thecumulative gain or loss previously recognised in ‘Other economic flows – other comprehensive income’ is transferredto other economic flows in the net result. The Institute recognises investments in equities and managed investmentschemes in this category.

Financial liabilities at amortised cost are initially recognised on the date they are originated. They are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the interest bearing liability, using the effective interest rate method. The Institute recognises the following liabilities in this category:• payables (excluding statutory payables); and• borrowings (including finance lease liabilities).


25



Derecognition of financial liabilities: A financial liability is derecognised when the obligation under the liability isdischarged, cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or theterms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognitionof the original liability and the recognition of a new liability. The difference in the respective carrying amounts isrecognised as an ‘other economic flow’ in the comprehensive operating statement.

Where the Institute has neither transferred nor retained substantially all the risks and rewards or transferred control,the asset is recognised to the extent of the Institute’s continuing involvement in the asset.

Impairment of financial assetsAt the end of each reporting period, the Institute assesses whether there is objective evidence that a financial asset orgroup of financial assets is impaired. All financial instrument assets, except those measured at fair value through thecomprehensive operating statement, are subject to annual review for impairment.

The allowance is the difference between the financial asset’s carrying amount and the present value of estimatedfuture cash flows, discounted at the effective interest rate. In assessing impairment of statutory (non-contractual)financial assets, which are not financial instruments, professional judgement is applied in assessing materiality usingestimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets.

Reclassification of financial instruments: Subsequent to initial recognition and under rare circumstances, non-derivative financial instruments assets that have not been designated at fair value through the comprehensiveoperating statement upon recognition, may be reclassified out of the fair value through the comprehensive operatingstatement, if they are no longer held for the purpose of selling or repurchasing in the near term.

Financial instrument assets that meet the definition of loans and receivables may be reclassified out of the fair valuethrough profit and loss category into the loans and receivables category, where they would have met the definition ofloans and receivables had they not been required to be classified as fair value through profit and loss. In these cases,the financial instrument assets may be reclassified out of the fair value through the comprehensive operatingstatement, if there is the intention and ability to hold them for the foreseeable future or until maturity.

Available-for-sale financial instrument assets that meet the definition of loans and receivables may be reclassified intothe loans and receivables category if there is the intention and ability to hold them for the foreseeable future or untilmaturity.

• the rights to receive cash flows from the asset have expired; or• the Institute retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in fullwithout material delay to a third party under a ‘pass through’ arrangement; or• the Institute has transferred its rights to receive cash flows from the asset and either:

(a) has transferred substantially all the risks and rewards of the asset, or(b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred

control of the asset.

7.1 Financial instruments (continued)

Derecognition of financial assetsA financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) isderecognised when:


26



7.1 Financial instruments (continued)

7.1.1 Net holding gain/(loss) on financial instrument by category

Net holding gain/(loss) on financial instrument by category

2017 2016 2017 2016 2017 2016 2017 2016Consolidated $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Financial assets designated at fair value through profit/loss - - - - - - - - Financial assets – loans and receivables - Financial assets available‑for‑sale recognised in net result - - 521 612 2,779 2,172 3,300 2,784 Financial assets available‑for‑sale recognised in other comprehensive result - - - - - - - - Total contractual financial assets - - 521 612 2,779 2,172 3,300 2,784 Financial liabilities at amortised cost (264) (400) - - - - (264) (400) Financial liabilities designated at fair value through profit/loss - - - - - - - - Total contractual financial liabilities (264) (400) - - - - (264) (400)

InstituteFinancial assets designated at fair value through profit/loss - - - - - - - - Financial assets – loans and receivables - - - - - - - - Financial assets available‑for‑sale recognised in net result - - 434 428 2,753 2,172 3,187 2,600 Financial assets available‑for‑sale recognised in other comprehensive result - - - - - - - - Total contractual financial assets - - 434 428 2,753 2,172 3,187 2,600 Financial liabilities at amortised cost (264) (400) - - - - (264) (400) Financial liabilities designated at fair value through profit/loss - - - - - - - - Total contractual financial liabilities (264) (400) - - - - (264) (400)

Net holding gain/(loss)

Total interest income/(expense)

Fee income (expense)

Total

The net holding gains or losses disclosed are determined as follows:• for cash and cash equivalents, loans or receivables and available-for-sale financial assets, the net gain or loss is calculated by taking the movement in the fair value of the asset, the interest income, plus or minus foreign exchange gains or losses arising from revaluation of the financial assets, and minus any impairment recognised in the net result; • for financial liabilities measured at amortised cost, the net gain or loss is calculated by taking the interest expense, plus orminus foreign exchange gains or losses arising from the revaluation of financial liabilities measured at amortised cost; • and for financial asset and liabilities that are held for trading or designated at fair value through profit or loss, the net gain or loss is calculated by taking the movement in the fair value of the financial asset or liability.

Net gain/ (loss) on financial instruments includes realised and unrealised gains and losses from the revaluations of financial instruments that are designated at fair value through profit or loss or held-for-trading, impairment and reversal of impairment for financial instruments at amortised cost, and disposals of financial assets.


27


7. MANAGING RISKS AND UNCERTAINTIES7.1 Financial instruments (continued)7.1.2 Financial risk management objectives and policies

Credit risk

Consolidated $’000 $’000 $’000 $’0002017Cash and deposits 40,488 - - 40,488 Receivables 1 - - 3,598 3,598 Investments and other financial assets - 48,916 - 48,916 Total contractual financial assets 40,488 48,916 3,598 93,002 2016Cash and deposits 21,260 - - 21,260 Receivables 1 - - 4,810 4,810 Investments and other financial assets - 63,504 - 63,504 Total contractual financial assets 21,260 63,504 4,810 89,574

Institute $’000 $’000 $’000 $’0002017Cash and deposits 37,012 - - 37,012 Receivables 1 - - 3,598 3,598 Investments and other financial assets - 46,840 - 46,840 Total contractual financial assets 37,012 46,840 3,598 87,450 2016Cash and deposits 9,019 - - 9,019 Receivables 1 - - 4,495 4,495 Investments and other financial assets - 63,504 - 63,504 Total contractual financial assets 9,019 63,504 4,495 77,018 Notes:1. The total amounts disclosed here exclude statutory amounts (e.g. amounts owing to/from Victorian Government, GST input tax credit recoverable and taxes payable).

The Institute does not engage in hedging for its contractual financial assets. The Institute’s policy is to only deal with banks with high credit ratings.

The Institute is exposed to a variety of financial risks, market risk (including interest rate risk and equity price risk), credit risk andliquidity risk.

The Institute's financial risk management program considers on the unpredictability of financial markets and seeks to minimisepotential adverse effects on the financial performance of the Institute. The Institute uses different methods to measure differenttypes of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and other price risks andageing analysis for credit risk.

Risk management is carried out across the Institute in accordance with the Risk Management Policy and Plan approved by theBoard. The Board provides written principles for overall risk management, as well as policies covering specific areas, such asinterest rate risk, credit risk and investment of excess liquidity.

Credit risk refers to the possibility that a borrower will default on its financial obligations as and when they fall due. Credit risk arises from the contractual financial assets of the Institute, which comprise cash and deposits and non-statutory receivables. The Institute’s exposure to credit risk arises from the potential default of a counter party on their contractual obligations resulting in financial loss to the Institute. Credit risk is measured at fair value and is monitored on a regular basis by Institute management.

The Institute minimises concentrations of credit risk in relation to trade accounts receivable by undertaking transactions with a large number of customers. The major customers relate to the provision of Vocational Education and Training services to learners and industry.

The carrying amount of contractual financial assets recorded in the financial statements, net of any allowances for losses, represents the Institute's maximum exposure to credit risk without taking account of the value of any collateral obtained.

Credit quality of contractual financial assets that are neither past due nor impairedFinancial

Institutions (AA- rating)

Government agencies

(AAA rating)

Other counterparty

Total


28



7.1.2 Financial risk management objectives and policies (continued)

Liquidity risk

Market risk

Foreign currency risk

Equity price risk

Interest rate risk

Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates.

Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Institute manages cash flow interest rate risk through a mixture of short term and longer term investments. Management monitors movement in interests rate on a monthly basis.

The carrying amounts of financial assets and financial liabilities that are exposed to interest rates and the Institute's sensitivity to interest rate risk are set out on the following table.

The Institute in its daily operations is exposed to a number of market risks. Market risks relate to the risk that market rates andprices will change and that this will have an adverse effect on the operating result and /or net worth of the Institute.

The Institute’s exposures to market risk include foreign currency risk, equity price risk and interest rate risk. Objectives, policies and processes used to manage each of these risks are disclosed below.

The Institute is exposed to equity price risk through its investments with the Victorian Funds Management Corporation (VFMC).

Interest rate risk arises from the potential for a change in interest rates to change the expected net interest earnings in the current reporting period and in future years, or cause a fluctuation in the fair value of the financial instruments.

The Institute has minimal exposure to foreign currency risk.

There has been no significant change in the Institute's exposure, or its objectives, policies and processes for managing foreign currency risk or the methods used to measure this risk from the previous reporting period.

Liquidity risk is the risk that the Institute will not be able to meet its financial obligations as they fall due. Liquidity risk is managedby the Institute management and overseen by the Board through maintenance of sufficient liquid assets and borrowing facilities,and active monitoring of cash flow forecasts.




7.1.2 Financial risk management objectivies and policies (continued)

Interest rate exposure of financial instruments2017 2016 2017 2016 2017 2016 2017 2016 2017 2016

Consolidated % % $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000Cash and deposits 1.44 0.500 40,488 2,160 40,488 2,160 - - - - Receivables - - - - - - Trade receivables - - 4,032 4,810 - - - - 4,032 4,810 Revenue receivable - - - - - - - - - Term deposits - 1.780 - 19,100 - - - 19,100 - - Equities and managed investments - - - 63,504 - - - - 63,504 Total financial assets 44,520 89,574 40,488 2,160 - 19,100 4,032 68,314

PayablesSupplies and services - - 9,380 9,780 - - - - 9,380 9,780 Borrowings - - - - - - - - - - Advances from Government - - 3,965 4,516 - - - - 3,965 4,516

Total contractual financial liabilities 13,345 14,296 - - - - 13,345 14,296

InstituteCash and deposits 1.44 0.500 37,012 2,019 37,012 2,019 - - - - Receivables - - - - - - - - Trade receivables - - 3,598 4,495 - - - - 3,598 4,495 Revenue receivable - - - - - - - - - - Investment in Subsidiary - - - - - - - - Term deposits - 1.780 - 7,000 - - - 7,000 - - Equities and managed investments - - 46,840 63,504 - - - 46,840 63,504 Total financial assets 87,450 77,018 37,012 2,019 - 7,000 50,438 67,999

PayablesSupplies and services - - 9,311 9,724 - - - - 9,311 9,724 Borrowings - - - - - - - - - - Advances from Government - - 3,965 4,516 - - - - 3,965 4,516

Total contractual financial liabilities 13,276 14,240 - - - - 13,276 14,240

Interest rate risk sensitivity

2017 2016 2017 2016 2017 2016 2017 2016 2017 2016Consolidated $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Cash and deposits 40,488 2,160 (405) (22) (405) (22) 405 22 405 22 Deposits at call - 19,100 - (191) - (191) - 191 - 191 Total impact 40,488 21,260 (405) (213) (405) (213) 405 213 405 213

InstituteCash and deposits 37,012 2,019 (370) (20) (370) (20) 370 20 370 20 Deposits at call - 7,000 - (70) - (70) - 70 - 70 Total impact 37,012 9,019 (370) (90) (370) (90) 370 90 370 90

2017 2016 2017 2016 2017 2016 2017 2016 2017 2016Consolidated $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000Managed investments 48,916 63,504 (4,892) (6,350) (4,892) (6,350) 4,892 6,350 4,892 6,350 Total impact 48,916 63,504 (4,892) (6,350) (4,892) (6,350) 4,892 6,350 4,892 6,350

InstituteManaged investments 46,840 63,504 (4,684) (6,350) (4,684) (6,350) 4,684 6,350 4,684 6,350 Total impact 46,840 63,504 (4,684) (6,350) (4,684) (6,350) 4,684 6,350 4,684 6,350

⁺10%Carrying amount Result Equity Result Equity

-10%

Equity price risk

A possible change of 10% (2016: 10% ) in equity price risk at the reporting date would have increased (decreased) equity and results by the amount shown below. This analysis assumes that all other variables remain constant.

Non-interest bearing

A possible change of 1% (2016: 1% ) in interest rates at the reporting date would have increased (decreased) equity and results by the amount shown below. This analysis assumes that all other variables remain constant.

-1% ⁺1%Carrying amount Result Equity Result Equity

Interest rate risk

Weighted average effective rate

Total carrying amount per

balance sheet

Floating interest rate

Fixed interest rate


30



7.2 Contingent assets and contingent liabilities

Contingent assets

A claim was lodged during the year against the Institute in relation to non performance under a service contract. The Institute has disclaimed liability and is defending the action.

Contingent assets and contingent liabilities are not recognised in the balance sheet but are disclosed and, ifquantifiable, are measured at nominal value.

Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively.

Contingent assets are possible assets that arise from past events, whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.These are classified as either quantifiable, where the potential economic benefit is known, or non-quantifiable.

Contingent liabilities

Contingent liabilities are:• possible obligations that arise from past events, whose existence will be confirmed only by the occurrence ornon-occurrence of one or more uncertain future events not wholly within the control of the entity; or• present obligations that arise from past events but are not recognised because:- it is not probable that an outflow of resources embodying economic benefits will be required to settle theobligations; or- the amount of the obligations cannot be measured with sufficient reliability.

Contingent liabilities are also classified as either quantifiable or non-quantifiable.

The Institute has no contingent assets at 31 December 2017 (2016: Nil)


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7.3 Fair value determination

Fair value hierarchy

Financial assetsCash and deposits

Receivables: • Supplies and services• Sales of goods and services• Revenue receivable • Advance from government

• Finance leases

These financial instruments include:Financial liabilitiesPayables

• Borrowings

The fair value of financial instruments is the same as the carry amount.

Fair value determination of financial assets and liabilities

The Institute currently holds a range of financial instruments that are recorded in the financial statements where the carryingamounts are a reasonable approximation of fair value, either due to their short-term nature or with the expectation that they willbe paid in full by the end of the 2018 reporting period.

This section sets out information on how the Institute determined fair value for financial reporting purposes. Fair value is theprice that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants atthe measurement date.

The following assets and liabilities are carried at fair value:• financial assets and liabilities at fair value through operating result;• available-for-sale financial assets;• land, buildings, plant and equipment, vehicles, lease hold improvements; and• investment properties.

In addition, the fair values of other assets and liabilities that are carried at amortised cost, also need to be determined fordisclosure purposes.

The Institute determines the policies and procedures for determining fair values for both financial and non-financial assets andliabilities as required.

In determining fair values a number of inputs are used. To increase consistency and comparability in the financial statements,these inputs are categorised into three levels, also known as the fair value hierarchy. The levels are as follows:

• Level 1 – quoted (unadjusted) market prices in active markets for identical assets or liabilities;• Level 2 – valuation techniques for which the lowest level input that is significant to the fair value measurement is directly orindirectly observable; and• Level 3 – valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

The Institute determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.


32



2017 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Financial assetsCash and deposits 40,488 40,488 - - 37,012 37,012 - - ReceivablesTrade receivables 4,022 4,022 - - 3,588 3,588 - - Other receivables 10 10 - - 10 10 - - Investments and other financial assetsManaged investment schemes 48,916 48,916 - - 46,840 46,840 - -

Total financial assets 93,436 93,436 - - 87,450 87,450 - -

Financial liabilitiesPayables 9,380 9,380 - - 9,311 9,311 - - BorrowingsFinance lease liabilities 7,294 7,294 - - 7,294 7,294 - - Advances from Government 3,965 3,965 - - 3,965 3,965 - - Total financial liabilities 20,639 20,639 20,570 20,570

There have been no transfers between levels during the period.

2016Financial assetsCash and deposits 21,260 21,260 - - 9,019 9,019 - -

ReceivablesTrade receivables 4,800 4,800 - - 3,588 3,588 - -

Other receivables 10 10 - - 10 10 - -

Investments and other financial assetsManaged investment schemes 63,504 63,504 - - 63,504 63,504 - -

Total financial assets 89,574 89,574 - - - 76,121 76,121 - -

Financial liabilitiesPayables 9,780 9,780 - - 9,724 9,724 - -

BorrowingsAdvances from Government 4,516 4,516 - - 4,516 4,516 - -

Total financial liabilities 14,296 14,296 - - 14,240 14,240 - -

Below is the fair value hierarchy information of financial assets measured at fair value.

Consolidated InstituteCarrying amount at 31 December

Fair value measurement at end of reporting period using:

Carrying amount at 31 December

Fair value measurement at end of reporting period using:

7.3 Fair value determination (continued)


33



(b) Fair value determination of non-financial assets

Level 1 Level 2 Level 3 Level 1 Level 2 Level 3

Quoted pricesObservable price inputs

Unobservable inputs


Unobservable inputs

2017 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000Specialised land 116,105 - - 116,105 116,105 - - 116,105 Total land at fair value 116,105 - - 116,105 116,105 - - 116,105

Specialised buildings 200,451 - - 200,451 200,451 - - 200,451 Total buildings at fair value 200,451 - - 200,451 200,451 - - 200,451

Plant and equipment 4,556 - - 4,556 4,556 - - 4,556 Cultural assets 528 - 528 528 - 528 - Vehicles 1,769 - - 1,769 1,769 - - 1,769 Library 70 - - 70 70 - - 70 Computer equipment 2,737 - - 2,737 2,737 - - 2,737 Leasehold improvements - - - - - - - - Total other assets at fair value 9,660 - 528 9,132 9,660 - 528 9,132

2016Specialised land 57,043 - - 57,043 57,043 - - 57,043 Total land at fair value 57,043 - - 57,043 57,043 - - 57,043

Specialised buildings 186,240 - - 186,240 186,240 - - 186,240 Total buildings at fair value 186,240 - - 186,240 186,240 - - 186,240

Plant and equipment 2,745 - - 2,745 2,745 - - 2,745 Cultural assets 435 - 435 435 - 435 -Vehicles 1,310 - - 1,310 1,310 - - 1,310 Library 341 - - 341 341 - - 341 Computer equipment 1,764 - - 1,764 1,764 - - 1,764 Leasehold improvements 164 - - 164 164 - - 164 Total other assets at fair value 6,759 - 435 6,324 6,759 - 435 6,324

Level 1 Level 2 Level 3 Level 1 Level 2 Level 3


Unobservable inputs


Unobservable inputs

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Fair value measurement hierarchy2017Investment properties 104,750 - 104,750 - 82,095 - 82,095 -Total investment properties 104,750 - 104,750 - 82,095 - 82,095 -

2016Investment properties 90,890 - 90,890 - 69,960 - 69,960 - Total investment properties 90,890 - 90,890 - 69,960 - 69,960 -

Consolidated InstituteCarrying

amount at 31

December

Carrying amount at 31

December

The Institute holds property, plant and equipment for which fair values are determined. Below are the relevant fair value information relating to those assets.


Consolidated InstituteCarrying

amount at 31

December

Carrying amount at 31

December

Fair value measurement hierarchy property, plant and equipment


34



Valuations of property, plant and equipment

Motor vehicles are valued using the depreciated replacement cost method. The Institute acquires new vehicles and at times disposes of them before the end of their economic life. The process of acquisition, use and disposal in the market is managed by experienced fleet managers in the Institute who set relevant depreciation rates during use to reflect the utilisation of the vehicles.

Plant and equipment is held at fair value. When plant and equipment is specialised in use, such that it is rarely sold other than as part of a going concern, fair value is determined using the depreciated replacement cost method.

Leasehold improvements are held at fair value being depreciated cost. As there is no evidence of a reliable market-based fair value (or other relevant fair value indicators) for leasehold improvements, depreciated cost is the fair value for these types of assets. The valuation of leasehold improvements is based on significant unobservable inputs and accordingly is classified as Level 3 assets.


Independent values were appointed by the Valuer General of Victoria to determine fair value as at 31 December 2017. The next scheduled external independent revaluation for the Institute will be conducted in 2022.

Non specialised land and non specialised buildings are valued using the market approach. Under this valuation method, the assets are compared to recent comparable sales or sales of comparable assets which are considered to have nominal or no added improvement value.

For non specialised land and non specialised buildings, an independent valuation was performed by the Valuer General Victoria with an effective date of 31 December 2017. Valuation of the assets was determined by analysing comparable sales and allowing for share, size, topography, location and other relevant factors specific to the asset being valued. From the sales analysed, an appropriate rate per square metre has been applied to the subject asset.

To the extent that non specialised land, non specialised buildings and artworks do not contain significant, unobservable adjustments, these assets are classified as Level 2 under the market approach.

Specialised land and specialised buildingsThe market approach is also used for specialised land, although is adjusted for the community service obligation (CSO) to reflect the specialised nature of the land being valued.

The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that is also equally applicable to market participants. This approach is in light of the highest and best use consideration required for fair value measurement, and takes into account the use of the asset that is physically possible, legally permissible, and financially feasible. As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified as Level 3 assets.

For the Institute’s majority of specialised buildings, the depreciated replacement cost method is used, adjusting for the associated depreciations. As depreciation adjustments are considered as significant, unobservable inputs in nature, specialised buildings are classified as Level 3 fair value measurements.

An independent valuation of the Institute's specialised land and specialised buildings was performed by the Valuer General Victoria. The valuation was performed using the market approach adjusted for CSO. The effective date of the valuation is 31 December 2017.


35




Reconciliation of level 3 fair value movements

2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

ConsolidatedOpening balance 57,043 56,068 186,240 193,736 2,745 2,735 1,310 1,244 341 611 1,764 650 164 574 Additions 16 - 4,635 29 923 480 1,055 486 - - 1,388 1,527 - - Transfers in (out) of Level 3 - 975 5,594 325 44 9 (132) - - - (3) - - -Depreciation - - (7,932) (7,850) (509) (479) (464) (420) (271) (270) (629) (413) (164) (410) Revaluation 59,046 - 11,914 - 1,353 - - - - - 217 - - - Closing Balance 116,105 57,043 200,451 186,240 4,556 2,745 1,769 1,310 70 341 2,737 1,764 - 164

InstituteOpening balance 57,043 56,068 186,240 193,736 2,745 2,735 1,310 1,244 341 611 1,764 650 164 574 Additions 16 - 4,635 29 923 480 1,055 486 - - 1,388 1,527 - - Transfers in (out) of Level 3 - 975 5,594 325 44 9 (132) - - - (3) - - -Depreciation - - (7,932) (7,850) (509) (479) (464) (420) (271) (270) (629) (413) (164) (410) Revaluation 59,046 - 11,914 - 1,353 - - - - - 217 - - - Closing Balance 116,105 57,043 200,451 186,240 4,556 2,745 1,769 1,310 70 341 2,737 1,764 - 164

Description of significant unobservable inputs to Level 3 valuations

Specialised buildings

Plant and equipment

Motor Vehicles

Library

Computer equipment

Leasehold improvements

Depreciated replacement cost Useful life of buildings

Depreciated replacement cost Useful life

There were no changes in valuation techniques throughout the period to 31 December 2017.

For all assets measured at fair value, the current use is considered the highest and best use.

Spec

ialis

ed

la

nd

Spec

ialis

ed

bu

ildin

gs

Plan

t and

eq

uipm

ent

Com

pute

r Eq

uipm

ent

Leas

ehol

d im

prov

emen

ts

2017 and 2016 Valuation technique Significant unobservable inputsMarket approach Community service obligation (CSO) adjustment Specialised land

The disclosure above assume that the non-financial assets held by the Institute are held primarily for their current service potential rather than to generate net cash inflows. Additional disclosure is required if the non-financial assets are for cash generating purposes, entities should refer to AASB 13 for detailed disclosure requirements.

Mot

or V

ehic

les

Libr

ary

Depreciated replacement cost Useful life of plant and equipment

Depreciated replacement cost



Useful life of computer equipment

66 | Annual Report 2017 Financial Report 36


8. GOVERNANCE

8.1 Responsible persons

Responsible persons

Minister

Accountable OfficerM. Faraone (Chief Executive)

Remuneration

Members of the Board of Holmesglen Institute P. Lewinsky - Chair B. Porter M. Faraone, Chief Executive D. Cleland A. Barker C. Karamzalis Emeritus Professor P. Darvall AO C. Walsh K. Corry K. BaileyJ. Grant (ceased 15/3/17)L. Morgan AM

Responsible Persons' Remuneration

The number of responsible persons are shown in their income bands:2017 2016

No NoIncome range 0 - 9,999 2 - 10,000 - 19,999 - 6 20,000 - 29,999 1 1 30,000 - 39,999 1 5 40,000 - 49,999 7 - 60,000 - 69,999 - 1 70,000 - 79,999 1 - 300,000 - 309,999 - 1 360,000 - 369,999 1 - Total number 13 14

$'000 $'000

810 675

In accordance with the directions of the Minister for Finance under the Financial Management Act 1994 , the following disclosures are made regarding responsible persons and executive officers for the reporting period.

The relevant Minister for the year was The Hon. Gayle Tierney MLC.

Remuneration of the Minister for Higher Education and Skills is disclosed in the financial report of the Department of Parliamentary Services. Other relevant interests are declared in the Register of Members interests which is completed by each member of the Parliament.

Remuneration received or receivable by the Accountable Officer in connection with the management of the Institute during the reporting period was in the range: $360,000 - $369,999 ($300,000 - $309,999 in 2016).

Total remuneration received or due and receivable by the responsible persons from the reporting entity.

M. Gorton AM (appointed 1/10/17)


37


•

•

•• Termination benefits include termination of employment payments, such as severance packages.

Consolidated InstituteTotal

RemunerationTotal

Remuneration

2017 2017$'000 $'000

Short-term benefits 3,161 3,161281 281

52 52Terminations benefits 0 0

3,494 3,49417 17

16.7 16.7

Annualised employee equivalent is based on paid working hours of 38 ordinary hours per week over the 52 weeks for a reporting period.

No comparative remuneration has been reported for 2016 because remuneration in the prior year was determined in line with the basis and definition under FRD 21B, which means comparatives are not required.

Post-employment benefitsOther long-term benefits

Total remunerationTotal number of executive officersTotal annualised employee equivalent (AEE)

Remuneration

Other long-term benefits include long service leave, other long service benefits or deferred compensation.

8. GOVERNANCE

8.2 Remuneration of executives

The remuneration of executive officers, other than ministers and accountable officers are shown in the table below. Total annualised employee equivalents provides a measure of full time equivalent executive officers over the reporting period.

Remuneration comprises employee benefits in all forms of consideration paid, payable or provided by the Institute, or on behalf of the Institute, in exchange for services rendered, and is disclosed in the following categories.

Short-term employee benefits include amounts such as wages, salaries, annual leave or sick leave that are usually paid or payable on a regular basis, as well as non-monetary benefits such as allowances and free or subsidised goods or services.Post-employment benefits include employer superannuation contributions.


38


8. GOVERNANCE

8.3 Related parties

Significant transactions with government related entities:-

2017 2016$000 $000

State Government - contestable 49,423 42,567 State Capital 2,150 5,000 Other 16,239 8,124

67,812 55,691

Related party transactions

2017 2016 2017 2016$000 $000 $000 $000

Donation from subsidiary to the InstituteHolmesglen International Training Services Pty. Ltd. 7,000 - - -

Distribution from the Holmesglen Foundation to the InstituteHolmesglen Foundation 1,005 967 - -

Total 8,005 967 - -

• L. English, Executive Director, Education and Applied Research • S. McKinnon, Executive Director, Student Engagement and Support

• D. Saunders, Excutive Director, International Education and Business Development • E. Spangher, Excutive Director, Infrastructure and Asset Management

Key management personnel of the Institute includes the Minister of Training and Skills, the Hon. Gayle Tierney MLC and the Members of the Holmesglen Institute Board, the Accountable Officer and the Institute's Senior Executive Team, which includes:- • J. James, Chief Financial Officer

• B. Prescott, Executive Director, Workforce, Performance and Development

Related parties of the Institute and its consolidated group include:• all key management personnel and their close family members and personal business interests (controlled entities, jointventures and entities they have significant influence over);• all cabinet ministers and their close family members; and• all entities that are controlled and consolidated into the Institute's consolidated financial statements.

All related party transactions have been entered into on an arm’s length basis.

The following entities have been consolidated into the Institute’s financial statements in accordance with AASB 10:• Holmesglen International Training Services Pty. Ltd.;• Glenuc Pty. Ltd; and• Holmesglen Foundation

Transaction values for year ended 31 December

Balances outstanding as at 31 December

The Institute received funding from the Victorian Government as follows:-


39


8. GOVERNANCE

8.3 Related parties (continued)

Entity Key management personnel Position title

M. Faraone DirectorD. Endean DirectorD. Duggan Director (resigned 15 June 2017)

M. Faraone DirectorB. Porter DirectorP. Lewinsky DirectorW. Chau Director

Compensation of Key management personnel

Remuneration 2017 2016(i) 2017 2016(i)

$000 $000 $000 $000

Short-term employee benefits 2,063 - 2,058 -

Post-employment benefits 175 - 175 -

Other long-term benefits 29 - 29 -

Termination benefits - - - -

Total remuneration 2,267 - 2,262 -

Transactions and balances with key management personnel and other related parties

Key management personnel of the entities consolidated pursuant to section 53(1)(b) of the FMA into the Institute’s financial statements include:


Holmesglen International Training Services Pty. Ltd.

Glenuc Pty. Ltd.

Total remuneration Total remuneration

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

(i) No comparative remuneration has been reported for 2016 because remuneration in the prior year was determined in line with the basis and definition under FRD 21 B.


40


8. GOVERNANCE

2017 2016 2017 2016Note $'000 $'000 $'000 $'000

8.4 Auditors remuneration

Remuneration of Victorian Auditor General's Office for:

Audit of the financial statements 95 87 95 87 Audit of the financial statements of subsidiaries 21 21 - - Total remuneration of Victorian Auditor-General's Office 116 108 95 87

Remuneration of other auditors : Other Assurance Services 94 44 94 44 Total remuneration of other auditors 94 44 94 44 Total Remuneration of Auditors 210 152 189 131

InstituteConsolidated


41


9. OTHER DISCLOSURES

2017 2016 2017 2016Note $'000 $'000 $'000 $'000

9.1 Other economic flows included in net result

(a) Net gain/(loss) on non-financial assetsRevaluation of investment properties 13,860 5,514 12,135 5,350 Revaluation of cultural assets 13 3 13 3 Net gain/(loss) on disposal of physical assets 218 483 218 88 Total net gain/(loss) on non-financial assets and liabilities 14,091 6,000 12,366 5,441

(b) Net gain/(loss) on financial instrumentsNet gain/(loss) realised on disposal of financial investments 206 - 206 - Subtotal net gain/(loss) on financial investments 206 - 206 - Net gain/(loss) on financial liabilities at amortised cost (264) (400) (264) (400) Total net gain/(loss) on financial instruments (58) (400) (58) (400)

• gains and losses on financial liabilities at amortised cost


‘Other economic flows’ are changes arising from market remeasurements. They include:

• gains and losses from revaluations of investments properties and cultural assets• gains and losses from disposal of physical assets• gains and losses from disposal of financial investments; and


42



2017 2016 2017 2016Note $'000 $'000 $'000 $'000

9.2 Equity reserves

(a) Contributed CapitalBalance at 1 January 122,807 122,807 122,807 122,807 Capital contributions - - - - Balance at 31 December 122,807 122,807 122,807 122,807

(b) ReservesComposition of ReservesPhysical asset revaluation surplus

Land 118,058 59,012 118,058 59,012 Buildings 96,013 84,099 96,013 84,099

Plant and Equipment 2,342 1,202 2,342 1,202 Balance at 31 December 216,413 144,313 216,413 144,313

Movements in ReservesBalance at 1 January 144,313 144,313 144,313 144,313 Revaluation increment on non-current assets 72,100 - 72,100 -

Balance at 31 December 216,413 144,313 216,413 144,313

LandBalance at 1 January 59,012 59,012 59,012 59,012 Revaluation increment on non-current assets 59,046 - 59,046 - Balance at 31 December 118,058 59,012 118,058 59,012

BuildingsBalance at 1 January 84,099 84,099 84,099 84,099

11,914 - 11,914 - Balance at 31 December 96,013 84,099 96,013 84,099

Plant and EquipmentBalance at 1 January 1,202 1,202 1,202 1,202

1,140 - 1,140 - Balance at 31 December 2,342 1,202 2,342 1,202

(c) Available for sale revaluation reserve*Balance at 1 January 1,504 265 1,504 265 Adjustments on adoption of new accounting policy - - - - Balance at beginning of financial year 1,504 265 1,504 265

Subtotal 1,504 265 1,504 265 Gain / (loss) on revaluation of Victorian Funds Management Corporation investments 2,012 1,239 1,936 1,239

Balance at 31 December 3,516 1,504 3,440 1,504

(d) Accumulated surplus / (deficit)Balance at 1 January 134,885 118,910 101,373 86,504 Net operating result for the year 25,083 15,975 30,142 14,869 Balance at 31 December 159,968 134,885 131,515 101,373

Total equity 502,704 403,509 474,175 369,997

The asset revaluation reserve for plant and equipment comprises increments/(decrements) arising from revaluations every 5 years. The last valuation was 31/12/17.

* The available for sale revaluation reserve arises on the revaluation of available for sale financial assets. Where a revalued financial asset is sold that portion of the reserve which relates to that financial asset, and is effectively realised, is recognised in the comprehensive operating statement. Where a revalued financial asset is impaired that portion of the reserve which relates to that financial asset is recognised in the comprehensive operating statement.


The asset revaluation reserve for land comprises increments/(decrements) arising from revaluations every 5 years. The last valuation was 31/12/17.

Revaluation decrement on non-current assets

The asset revaluation reserve for buildings comprises increments/(decrements) arising from revaluations every 5 years. The last valuation was 31/12/17.

Revaluation increment on non-current assets


43



2017 2016 2017 2016$'000 $'000 $'000 $'000

9.3 Superannuation

Paid Contribution for the YearDefined benefit plans:

State Superannuation Fund – revised and new 285 336 285 336 Total defined benefit plans 285 336 285 336

Defined contribution plans:VicSuper 5,281 3,471 5,281 3,471 Other 4,167 2,497 4,159 2,497

Total defined contributions plans 9,448 5,968 9,440 5,968 Total paid contribution for the year 9,733 6,304 9,725 6,304

Contribution Outstanding at Year EndVarious Funds 583 666 582 666

Total 583 666 582 666


Contributions to defined contribution plans are expensed when they become payable.

Defined benefit plansThe expenses recognised represents the contributions made by the Institute to the superannuation plan in respect of current services of current Institute staff which are based on the relevant rules of each plan.

Defined contribution plans

Employees of the Institute are entitled to receive superannuation benefits and the Institute contributes to both defined benefit and defined contribution plans. The defined benefit plan(s) provides benefits based on years of service and final average salary.

The Institute does not recognise any defined benefit liability in respect of the plan(s) because it has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance recognises and discloses the State’s defined benefit liabilities in its financial statements.

Superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the Comprehensive Operating Statement of the Institute.

The name and details of the major employee superannuation funds and contributions made by the Institute are as follows:


44



2017 2016 2017 2016Note $'000 $'000 $'000 $'000

9.4 Commitments

9.4.1 Expenditure commitments

(a) Capital expenditure commitments payable

Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows:

Property, Plant and EquipmentPayable:

- Within one year 1,983 3,207 1,983 3,207 - Later than one year but not later than five years - - - -

Total Property, Plant and Equipment 1,983 3,207 1,983 3,207 GST reclaimable on the above (180) (292) (180) (292)Net Commitments Property, Plant and Equipment 1,803 2,915 1,803 2,915

(b) Non-cancellable operating lease commitments payable

Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:

- Within one year 2,332 1,842 2,332 1,842 - Later than one year but not later than five years 6,985 783 6,985 783

Total minimum lease payments in relation to non-cancellable operating leases 9,317 2,625 9,317 2,625 GST reclaimable on the above (847) (239) (847) (239)Net commitments non-cancellable operating leases 8,470 2,386 8,470 2,386

(c) Other expenditure commitments

Commitments for contracts relating to property service agreements (e.g. cleaning, waste management and security services) and licence agreements in existence at the reporting date but not recognised as liabilities,Payable:

- Within one year 7,053 6,779 7,053 6,779 - Later than one year but not later than five years 4,146 9,799 4,146 9,799

Total other expenditure commitments 11,199 16,578 11,199 16,578 GST reclaimable on the above (1,018) (1,508) (1,018) (1,508)Net commitments other expenditure commitments 10,181 15,070 10,181 15,070

9.4.2 Receivable commitmentsAt the reporting date the Institute leased out the following assets:-

Gross amount of leased assets 104,750 90,890 82,095 69,960

Operating lease receivables- Within one year 5,543 5,513 4,346 4,363 - Later than one year but not later than five years 21,026 21,243 17,328 16,907 - Within one year 73,496 78,479 73,996 78,424

Net operating lease receivables 100,065 105,235 95,670 99,694


The Institute leases certain land, buildings and equipment. These leases range in length with the shortest lease terminating eighteen months from the 31 December 2017 and the longest lease terminating 4 years from the 31 December 2017.


46



9.6 Events after reporting date

No matter or circumstance has occurred subsequent to period end that has significantly affected, or maysignificantly affect, the operations of the Institute and the Consolidated group, the results of those operationsor the state of affairs of the Institute and the Consolidated group in subsequent financial years.

The policy in connection with recognising subsequent events is that when events occur between the end of thereporting period and the date when the financial statements are authorised for issue: • adjustments are made to amounts recognised in the financial statements where those events provideinformation about conditions which existed at the reporting date; and/or• disclosure is made where the events relate to conditions which arose after the end of the reporting periodthat are considered to be of material interest.

Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactionsresult from an agreement between the Institute and other parties, the transactions are only recognised whenthe agreement is irrevocable at or before balance date. Adjustments are made to amounts recognised in thefinancial statements for events which occur after the reporting date and before the date the statements areauthorised for issue, where those events provide information about conditions which existed at the reportingdate. Note disclosure is made about events between the reporting date and the date the statements areauthorised for issue where the events relate to conditions which arose after the reporting date and areconsidered to be of material interest.

45



9.5 Controlled entities

Class of shares

Equity holding

Equity holding

2017 2017 2016Name of entity % %Holmesglen International Training Services Pty Ltd. Ordinary 100 100Glenuc Pty. Ltd. Ordinary 100 100Holmesglen Foundation N/A

Australia

Country of incorporation

Australia

The consolidated financial statements incorporate the assets, liabilities and results of the following controlled entities:


47



9.7 Application of standards issued but not yet effective

AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9

Amends various AASs to incorporate the consequential amendments arising from the issuance of AASB 9.

1-Jan-18 The assessment has indicated that there will be no significant impact for the public sector.

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010)

The requirements for classifying and measuring financial liabilities were added to AASB 9. The existing requirements for the classification of financial liabilities and the ability to use the fair value option have been retained. However, where the fair value option is used for financial liabilities the change in fair value is accounted for as follows:• The change in fair value attributable to changes in credit risk is presented in other comprehensive income (OCI); and • Other fair value changes are presented in profit and loss. If this approach creates or enlarges an accounting mismatch in the profit or loss, the effect of the changes in credit risk are also presented in profit or loss.

1-Jan-18 The assessment has identified that the financial impact of available for sale (AFS) assets will now be reported through other comprehensive income (OCI) and no longer recycled to the profit and loss. Changes in own credit risk in respect of liabilities designated at fair value through profit and loss will now be presented within other comprehensive income (OCI). Hedge accounting will be more closely aligned with common risk management practices making it easier to have an effective hedge. For entities with significant lending activities, an overhaul of related systems and processes may be needed.

AASB 2014-1 Amendments to Australian Accounting Standards [Part E Financial Instruments]

Amends various AASs to reflect the AASB’s decision to defer the mandatory application date of AASB 9 to annual reporting periods beginning on or after 1 January 2018 as a consequence of Chapter 6 Hedge Accounting, and to amend reduced disclosure requirements.

1-Jan-18 This amending standard will defer the application period of AASB 9 to the 2018-19 reporting period in accordance with the transition requirements.

AASB 9 Financial Instruments

The key changes include the simplified requirements for the classification and measurement of financial assets, a new hedging accounting model and a revised impairment loss model to recognise impairment losses earlier, as opposed to the current approach that recognises impairment only when incurred.

1-Jan-18 The assessment has identified that the amendments are likely to result in earlier recognition of impairment losses and at more regular intervals.

While there will be no significant impact arising from AASB 9, there will be a change to the way financial instruments are disclosed.

Standard/Interpretation

Summary Applicable for annual reporting periods beginning on

Impact on public sector entity financial statements


48



9.7 Application of standards issued but not yet effective (continued)

AASB 2015-8 Amendments to Australian Accounting Standards – Effective Date of AASB 15

This Standard defers the mandatory effective date of AASB 15 from 1 January 2017 to 1 January 2018.

1-Jan-18 This amending standard will defer the application period of AASB 15 for for-profit entities to the 2018-19 reporting period in accordance with the transition requirements.

AASB 2016-3 Amendments to Australian Accounting Standards – Clarifications to AASB 15

This Standard amends AASB 15 to clarify the requirements on identifying performance obligations, principal versus agent considerations and the timing of recognising revenue from granting a licence. The amendments require: • A promise to transfer to a customer a good or service that is ‘distinct’ to be recognised as a separate performance obligation; • For items purchased online, the entity is a principal if it obtains control of the good or service prior to transferring to the customer; and • For licences identified as being distinct from other goods or services in a contract, entities need to determine whether the licence transfers to the customer over time (right to use) or at a point in time (right to access).

1-Jan-18 The assessment has indicated that there will be no significant impact for the public sector, other than the impact identified for AASB 15 above.

AASB 15 Revenue from Contracts with Customers

The core principle of AASB 15 requires an entity to recognise revenue when the entity satisfies a performance obligation by transferring a promised good or service to a customer.

1-Jan-18 The changes in revenue recognition requirements in AASB 15 may result in changes to the timing and amount of revenue recorded in the financial statements. The Standard will also require additional disclosures on service revenue and contract modifications.

AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15

Amends the measurement of trade receivables and the recognition of dividends.Trade receivables, that do not have a significant financing component, are to be measured at their transaction price, at initial recognition. Dividends are recognised in the profit and loss only when:• the entity’s right to receive payment of the dividend is established; • it is probable that the economic benefits associated with the dividend will flow to the entity; and • the amount can be measured reliably.

1 Jan 2017, except amendments to AASB 9 (Dec 2009) and AASB 9 (Dec 2010) apply from 1 Jan 2018

The assessment has indicated that there will be no significant impact for the public sector.





49



9.7 Application of standards issued but not yet effective (continued)

AASB 1058 Income of Not-for-Profit Entities

This standard replaces AASB 1004 Contributions and establishes revenue recognition principles for transactions where the consideration to acquire an asset is significantly less than fair value to enable to not-for-profit entity to further its objectives.

1-Jan-19 The assessment has indicated that revenue from capital grants that are provided under an enforceable agreement that have sufficiently specific obligations, will now be deferred and recognised as performance obligations are satisfied. As a result, the timing recognition of revenue will change.

In addition to the new standards and amendments above, the AASB has issued a list of other amending standards that are not effective for the 2016-17 reporting period (as listed below). In general, these amending standards include editorial and references changes that are expected to have insignificant impacts on public sector reporting.

• AASB 2016-1 Amendments to Australian Accounting Standards – Recognition of Deferred Tax Assets for Unrealised Losses [AASB 112] • AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107• AASB 2016-5 Amendments to Australian Accounting Standards – Classification and Measurements of Share-based Payment Transactions• AASB 2016-6 Amendments to Australian Accounting Standards – Applying AASB 9 Financial Instruments with AASB 4 Insurance Contracts• AASB 2017-1 Amendments to Australian Accounting Standards – Transfers of Investment Property, Annual Improvements 2014-16 Cycle and Other Amendments • AASB 2017-2 Amendments to Australian Accounting Standards – Further Annual Improvements 2014-16 Cycle

AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities

This Standard amends AASB 9 and AASB 15 to include requirements to assist not-for-profit entities in applying the respective standards to particular transactions and events. The amendments: • require non-contractual receivables arising from statutory requirements (i.e. taxes, rates and fines) to be initially measured and recognised in accordance with AASB 9 as if those receivables are financial instruments; and • clarifies circumstances when a contract with a customer is within the scope of AASB 15.

1-Jan-19 The assessment has indicated that there will be no significant impact for the public sector, other than the impacts identified for AASB 9 and AASB 15 above.

AASB 16 Leases The key changes introduced by AASB 16 include the recognition of most operating leases (which are current not recognised) on balance sheet.

1-Jan-19 The assessment has indicated that as most operating leases will come on balance sheet, recognition of the right-of-use assets and lease liabilities will cause net debt to increase. Rather than expensing the lease payments, depreciation of right-of-use assets and interest on lease liabilities will be recognised in the income statement with marginal impact on the operating surplus.No change for lessors.




AASB 2016-7 Amendments to Australian Accounting Standards – Deferral of AASB 15 for Not-for-Profit Entities

This Standard defers the mandatory effective date of AASB 15 for not-for-profit entities from 1 January 2018 to 1 January 2019.

1-Jan-19 This amending standard will defer the application period of AASB 15 for not-for-profit entities to the 2019-20 reporting period.


Independent Auditor’s Report To the Board of Holmesglen Institute

Opinion I have audited the accompanying statement of performance of Holmesglen Institute (the institute) which comprises the:

statement of performance declaration by board chair, chief executive officer and chief finance

officer

In my opinion, the statement of performance of Holmesglen Institute in respect of the year ended 31 December 2017 presents fairly, in all material respects.

Basis for Opinion I have conducted my audit in accordance with the Audit Act 1994 which incorporates the Australian Standards on Assurance Engagements. My responsibilities under the Act are further described in the Auditor’s responsibilities for the audit of the statement of performance section of my report.

My independence is established by the Constitution Act 1975. I and my staff are independent of the institute in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the statement of performance in Australia and have also fulfilled our other ethical responsibilities in accordance with the Code.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Board's responsibilities for the statement of performance

The Board is responsible for the preparation and fair presentation of the statement of performance and for such internal control as the Board determines is necessary to enable the preparation and fair presentation of the statement of performance that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibilities for the audit of the statement of performance

As required by the Audit Act 1994, my responsibility is to express an opinion on the statement of performance based on the audit. My objectives for the audit are to obtain reasonable assurance about whether the statement of performance as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Standards on Assurance Engagements will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of this statement of performance.


2

As part of an audit in accordance with the Australian Standards on Assurance Engagements, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

identify and assess the risks of material misstatement of the statement of performance, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the institute’s internal control

evaluate the overall presentation, structure and content of the statement of performance, including the disclosures, and whether the statement of performance represents the underlying events and results in a manner that achieves fair presentation.

I communicate with the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

MELBOURNE 13 March 2018

Charlotte Jeffries as delegate for the Auditor-General of Victoria



STATEMENT OF PERFORMANCE

STATEMENT OF PERFORMANCE FOR YEAR ENDING 31ST DECEMBER 2017

Indicator Description and methodology

Metric 2017 Target 2017 ActualExplanation of variances

Prior year result

Training Revenue diversity

Breakdown of training revenue split by Government funded and Fee for Service

Percentage

• Government Funded

• Fee for Service (FFS)

40.0%

60.0%

40.2%

59.8%

Target achieved

Minor variance due to the higher proportion of government funded training revenue.

36.6%

63.4%

Employment costs as a proportion of training revenue *

Employment and Third Party training delivery costs as a proportion of training revenue (VTG and FFS)

Percentage <80% 76.7% Target achieved 76.4%

Training revenue per teaching FTE *

Training Revenue (excl. revenue delivered by third parties) per Teaching FTE

Dollars >$190,000 $198,385 Target achieved $195,111

Operating margin percentage

Operating margin %(EBIT (excl. capital contributions) / Total Revenue (excl. capital contributions)

Percentage >2% 5.5% Target achieved 3.6%

KPIs against the 2017 Statement of Corporate Intent

Student success

VET Module Load Completion Rate (government funded VET students)


Higher Education Progression Rate (commencing bachelor degree students)

Percentage >75% 71.6% Decreased pass rate for international students

77.1%

Stakeholder satisfaction

VET student overall satisfaction (Learner Survey)


Proportion of students who recommend the RTO (RTO performance indicator)

Percentage >75% 73.4% Slight decrease in results in 2017, although comparable to the average across all Victorian RTOs

75.2%

HE overall satisfaction (Course Experience Questionnaire GOS)


Employers satisfied with training (RTO performance indicator)


Growth in activity

Growth in Victorian government subsidised enrolments

Percentage ≥2% -0.3% Reduced commencing student enrolments

-1.9%

Growth in international student enrolments (onshore VET& HE)

Percentage ≥5% -6.3% Reduced enrolments in VET hospitality, business and language programs

-8.4%

Profitability Positive EBITDA margin (excluding capital contributions)


Staff satisfaction and engagement

Engagement Index(People Matter Index score)

Index >60 65 Target achieved 61

Overall Job Satisfaction scale(People Matter % satisfied)

Percentage >60% 66% Target achieved 59%


DISCLOSURE INDEX

Item No.

Source SUMMARY OF REPORTING REQUIREMENT Page

number

REPORT OF OPERATIONSCHARTER AND PURPOSE

1 FRD 22H Manner of establishment and the relevant Minister 4, 66

2 FRD 22H Purpose, functions, powers and duties linked to a summary of activities, programs and achievements 4-14

3 FRD 22H Nature and range of services provided including communities served 4-6, 10-14

MANAGEMENT AND STRUCTURE

4 FRD 22H Organisational structure and chart, including responsibilities and details of the accountabilities of an entity’s main activities

7-9

5 FRD 22H Names of Board and committee members 8, 66

FINANCIAL AND OTHER INFORMATION

6 FRD 03A Accounting for Dividends 40

7 FRD 07B Early adoption of authoritative accounting pronouncements NA

8 FRD 10A Disclosure Index 83-85

9 FRD 17B Long Service leave and annual leave for employees 50

10 FRD 20A Accounting for State motor vehicle lease arrangements prior to 1 February 2004 NA

11 FRD 22H Operational and budgetary objectives, performance against objectives and achievements 15-16, 82

12 FRD 22H Occupational health and safety statement including performance indicators, performance against those indicators. Reporting must be on the items listed at 5.10(a) to (e) in the FRD

21

13 FRD 22H Workforce data for current and previous reporting period including a statement on the application of employment and conduct principles and that employees have been correctly classified in the workforce data collections

22-23

14 FRD 22H Summary of the financial results, with comparative information for the preceding four reporting periods 15-16

15 FRD 22H Summary of significant changes in financial position 5, 15-16

16 FRD 22H Key initiatives and projects, including significant changes in key initiatives and projects from previous years and expectations for the future

10-12, 15-16

17 FRD 22H Post-balance sheet date events likely to significantly affect subsequent reporting periods 75

18 FRD 22H Summary of application and operation of the Freedom of Information Act 1982 16

19 FRD 22H Discussion and analysis of operating results and financial results 5, 15-16

20 FRD 22H Significant factors affecting performance 5, 15-16

21 FRD 22H Where a TAFE has a workforce inclusion policy, a measurable target and report on the progress towards the target should be included

23

22 FRD 22H Schedule of any government advertising campaign in excess of $100,000 or greater (exclusive of GST) include list from 5.16(a) – (d) in the FRD

19

23 FRD 22H Statement of compliance with building and maintenance provisions of the Building Act 1993 16-17

24 FRD 22H Statement, where applicable, on the implementation and compliance with the National Competition Policy

18

25 FRD 22H Summary of application and operation of the Protected Disclosure Act 2012 17

26 FRD 22H and FRD 24C

Summary of Environmental Performance including a report on office based environmental impacts 24-26

27

FRD 22H

Consultants: Report of Operations must include a statement disclosing each of the following: 1. Total number of consultancies of $10,000 or more (excluding GST) 2. Location (e.g. website) of where details of these consultancies over $10,000 have been made

publicly available 3. Total number of consultancies individually valued at less than $10,000 and the total expenditure for

the reporting period AND for each consultancy more than $10,000, a schedule is to be published on the TAFE institute website listing:

• Consultant engaged • Brief summary of project • Total project fees approved (excluding GST) • Expenditure for reporting period (excluding GST) • Any future expenditure committed to the consultant for the project

19

The Annual Report will be available on the Institute website once

approved

28 FRD 22H Statement, to the extent applicable, on the application and operation of the Carers Recognition Act 2012 (Carers Act), and the actions that were taken during the year to comply with the Carers Act

17

29 FRD 22H List of other information available on request from the Accountable Officer, and which must be retained by the Accountable Officer (refer to list at 5.19(a) – (l) in the FRD)

20


Item No.


number

FINANCIAL AND OTHER INFORMATION (Continued)

30 FRD 22H An entity shall disclose the following in the report of operations: a) Total entity ICT Business As Usual (BAU) expenditure for the full 12 month reporting period; and b) Total entity ICT Non-Business As Usual expenditure for the full 12 month reporting period; and

provide a breakdown for: (i) Operational expenditure (OPEX); and (ii) Capital expenditure (CAPEX).

19

31 FRD 25C Victorian Industry Participation Policy Disclosures 18

32 FRD 26B Accounting for VicFleet motor vehicle lease arrangements on or after 1 February 2004 NA

33 FRD 29B Workforce Data Disclosures on the public service employee workforce. Note: TAFEs must report on a calendar year basis (i.e. not financial year basis).

22

34 SD 3.7.1 The Responsible Body must ensure that the Agency applies the Victorian Government Risk Management Framework.

20

35 FRD 22H An entity’s report of operations shall contain general and financial information, including other relevant information, outlining and explaining an entity’s operations and activities for the reporting period.

4-5, 15-16

36 SD 5.2.1(a) The Accountable Officer must implement and maintain a process to ensure the Agency’s Annual Report is prepared in accordance with the FMA, these Directions, the Instructions, applicable Australian Accounting Standards and Financial Reporting Directions.

31

37 SD 5.2.3 The report of operations must be signed and dated by the Responsible Body or a member of the Responsible Body.

4, 31, 81

38 CG 10 (clause 27) Register of Major Commercial Activities and Report 20

39 CG 12 (clause 33) TAFE Institute Controlled Entities 9, 75

FINANCIAL REPORT - FINANCIAL STATEMENTS REQUIRED UNDER PART 7 OF THE FINANCIAL MANAGEMENT ACT 1984

40 SD 5.2.2(b) The declaration required under Direction 5.2.2(a) must state that in the joint opinion of the signing persons:• the financial statements present fairly the financial transactions during the reporting period and the

financial position at the end of that period; and• the financial statements have been prepared in accordance with applicable requirements in the

FMA, the Directions, the Financial Reporting Directions and Australian Accounting Standards.

31

OTHER REQUIREMENTS UNDER STANDING DIRECTION / FINANCIAL MANAGEMENT ACT 1994

41 SD 5.2.2(a) and FMA s49

An Agency’s financial statements must include a signed and dated declaration by: • the Accountable Officer; • subject to Direction 5.2.2(c), the CFO; and • for Agencies with a statutory board or equivalent governing body established by or under statute,

a member of the Responsible Body.

31

42 FRD 30D Rounding of amounts 37

43 SD 3.2.1.1(c) The Responsible Body must establish an Audit Committee to: • review annual financial statements and make a recommendation to the Responsible Body as to

whether to authorise the statements before they are released to Parliament by the Responsible Minister

7-8

OTHER REQUIREMENTS AS PER FINANCIAL REPORTING DIRECTIONS IN NOTES TO THE FINANCIAL STATEMENTS

44 FRD 11A Disclosure of ex-gratia payments NA

45 FRD 21C Disclosures of Responsible Persons, Executive Officer and Other Personnel (Contractors with significant management responsibilities) in the Financial Report

66-69

46 FRD 102A Inventories 46

47 FRD 103F Non-financial physical assets 34, 43-44

48 FRD 105B Borrowing costs 52-53

49 FRD 106A Impairment of assets 44-45, 55

50 FRD 107B Investment properties 42

51 FRD 109A Intangible assets 45

52 FRD 110A Cash flow statements 36

53 FRD 112D Defined benefit superannuation obligations 73

54 FRD 113A Investment in subsidiaries, jointly controlled entities and associates 75

55 FRD 114B Financial instruments – general government entities and public non-financial corporations 54-65

56 FRD 119A Transfers through contributed capital 72

57 FRD 120K Accounting and reporting pronouncements applicable to the reporting period 76-78


Item No.


number

COMPLIANCE WITH OTHER LEGISLATION, SUBORDINATE INSTRUMENTS AND POLICIES

58 Legislation The TAFE institute Annual Report must contain a statement that it complies with all relevant legislation, and subordinate instruments, (and which should be listed in the Report) including, but not limited to, the following: • Education and Training Reform Act 2006 (ETRA)• TAFE institute constitution • Directions of the Minister for Training and Skills (or predecessors) • TAFE institute Commercial Guidelines • TAFE institute Strategic Planning Guidelines • Public Administration Act 2004 • Financial Management Act 1994 • Freedom of Information Act 1982 • Building Act 1993 • Protected Disclosure Act 2012 • Victorian Industry Participation Policy Act 2003

16

59 ETRA s3.2.8 Statement about compulsory non-academic fees, subscriptions and charges payable in 2017 18-19

60 Policy Statement that the TAFE institute complies with the Victorian Public Sector Travel Principles 18

61 Key Performance

Indicators

See table on page 6 of the guidelines for required formatting. Institutes to report against: • KPIs set out in the annual Statement of Corporate Intent; and • Employment costs as a proportion of training revenue; • Training revenue per teaching FTE; • Operating margin percentage; • Training Revenue diversity.

82

OVERSEAS OPERATIONS OF VICTORIAN TAFE INSTITUTES

62 PAEC and VAGO

(June 2003 Special

Review item 3.110)

• Financial and other information on initiatives taken or strategies relating to the institute’s overseas operations

• Nature of strategic and operational risks for overseas operations • Strategies established to manage such risks of overseas operations • Performance measures and targets formulated for overseas operations • The extent to which expected outcomes for overseas operations have been achieved.

12


Requests for further information under the provisions of the Freedom of Information Act should be directed to:

Freedom of Information OfficerHolmesglenPO Box 42Holmesglen VIC 3148

Further copies of the annual report and other corporate publications can be obtained from:

Holmesglen Marketing DepartmentPO Box 42Holmesglen VIC 3148

Chadstone campusBatesford Road, ChadstoneVictoria, Australia 3148

City campus332 St Kilda Road, Southbank Victoria, Australia 3006

Moorabbin campus488 South Road, MoorabbinVictoria, Australia 3189

Waverley campus595 Waverley Road, Glen WaverleyVictoria, Australia 3150

Rural Learning CentreMoore Road, EildonVictoria, Australia 3713

Moorabbin-Bulli Street campus36 Bulli St, MoorabbinVictoria, Australia 3189

Arden Street campusLevel 2, 200 Arden St, North Melbourne Victoria, Australia 3051

All written correspondence to:PO Box 42Holmesglen Victoria, Australia 3148

T: +61 3 9564 1555E: [email protected]

Copyright © Holmesglen Institute, March 2017Holmesglen is the trading name of Holmesglen InstituteCRICOS Provider Code: 00012G. RTO: 0416.

Documents

Vocational and Higher Education 2017 ANNUAL REPORT · Chair, Ms Catherine Walsh This committee oversees all people-related activities at Holmesglen. It also ensures proper governance,