NCVER AUSTRALIAN VOCATIONAL EDUCATION AND TRAINING STATISTICS. Financial information 2002

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1 NCVER AUSTRALIAN VOCATIONAL EDUCATION AND TRAINING STATISTICS Financial information

2 2003 Australian National Training Authority Australian vocational education & training statistics: Financial information 2002 ISSN TD/TNC Related NCVER products Australian Vocational Education and Training Management Information and Statistical Standard: Financial data Australian vocational education & training statistics: students and courses 2002 At a glance Australian vocational education & training statistics: students and courses 2002 In detail Australian vocational education & training statistics 2001: Financial data These publications are available from < Related publications Employer training expenditure and practices, Australia, ABS catalogue ( ) Australian National Training Authority annual national report of the Australian vocational education and training system, volume 3 (published annually) at < Published by National Centre for Vocational Education Research Ltd ABN Level 11, 33 King William Street, Adelaide, SA 5000 PO Box 8288 Station Arcade, SA 5000, Australia Telephone: Facsimile: < ncver@ncver.edu.au This work has been produced with the assistance of funding provided by the Australian National Training Authority (ANTA) and is published by the National Centre for Vocational Education Research (NCVER) Ltd, ABN under licence from ANTA. Apart from any use permitted under the Copyright Act 1968, no part of this publication may be reproduced by any process without the written approval of the NCVER Ltd. Requests should be made in writing to NCVER Ltd. The views and opinions expressed in this document are those of the author and/or project team and do not necessarily reflect the views of the Australian National Training Authority.

3 Contents INTRODUCTION 1 About Australian VET Statistics financial information 1 Scope of the collection 2 SECTION 1: MAIN FEATURES 3 Financial performance 3 Recurrent revenues 3 Recurrent expenditures 6 Activity expenditures 9 Financial position 11 Assets and liabilities 11 Cash flows 13 Financial information 2002: Australia in Summary 14 SECTION 2: STATE, TERRITORY AND ANTA FINANCIAL STATEMENTS 17 Financial statements 17 Explanatory notes to the financial statements 67 SECTION 3: DEFINITIONS 69 Scope and boundaries 69 Accrual reporting 69 Item definitions 70 APPENDICES 75 Appendix 1: Participating organisations 76 Appendix 2: Pro forma audit certificate 77 List of Tables and Figures SECTION 1: MAIN FEATURES - TABLES AND FIGURES Tables 1 Recurrent revenues by category, 2001 and Recurrent expenditures by category, 2001 and Recurrent expenditures by activity, 2001 and Statement of financial position, 2001 and Property, plant and equipment, 2001 and Figures 1 Recurrent revenues by category, 1998 to 2002 (actual $ million) 5 2 Recurrent revenues by category as a proportion of total recurrent revenues, 1998 to 2002 (%) 5 3 Recurrent expenditures by category, 1998 to 2002 (actual $ million) 8 4 Recurrent expenditure by category as a proportion of total recurrent expenditures, 1998 to 2002 (%) 8 5 Recurrent expenditure by activity, 1998 to 2002 (actual $ million) 10 6 Recurrent expenditure by activity as a proportion of total recurrent expenditure, 1998 to 2002 (%) 10 iii

4 List of Tables - continued SECTION 2: STATE, TERRITORY AND ANTA FINANCIAL STATEMENTS 6 Australian statement of financial performance for the year ended 31 December 17 7 Australian statement of financial position as at 31 December 18 8 Australian statement of cash flows for the year ended 31 December 19 9 Australian operating expenses by activity for the year ended 31 December New South Wales statement of financial performance for the year ended 31 December New South Wales statement of financial position as at 31 December New South Wales statement of cash flows for the year ended 31 December New South Wales operating expenses by activity for the year ended 31 December Victoria statement of financial performance for the year ended 31 December Victoria statement of financial position as at 31 December Victoria statement of cash flows for the year ended 31 December Victoria operating expenses by activity for the year ended 31 December Queensland statement of financial performance for the year ended 31 December Queensland statement of financial position as at 31 December Queensland statement of cash flows for the year ended 31 December Queensland operating expenses by activity for the year ended 31 December Western Australia statement of financial performance for the year ended 31 December Western Australia statement of financial position as at 31 December Western Australia statement of cash flows for the year ended 31 December Western Australia operating expenses by activity for the year ended 31 December South Australia statement of financial performance for the year ended 31 December South Australia statement of financial position as at 31 December South Australia statement of cash flows for the year ended 31 December South Australia operating expenses by activity for the year ended 31 December Tasmania statement of financial performance for the year ended 31 December Tasmania statement of financial position as at 31 December Tasmania statement of cash flows for the year ended 31 December Tasmania operating expenses by activity for the year ended 31 December Northern Territory statement of financial performance for the year ended 31 December Northern Territory statement of financial position as at 31 December Northern Territory statement of cash flows for the year ended 31 December Northern Territory operating expenses by activity for the year ended 31 December Australian Capital Territory statement of financial performance for the year ended 31 December Australian Capital Territory statement of financial position as at 31 December Australian Capital Territory statement of cash flows for the year ended 31 December Australian Capital Territory operating expenses by activity for the year ended 31 December Australian National Training Authority statement of financial performance for the year ended 31 December Australian National Training Authority statement of financial position as at 31 December Australian National Training Authority statement of cash flows for the year ended 31 December Australian National Training Authority operating expenses by activity for the year ended 31 December 65 iv

5 List of Tables - continued SECTION 2: STATE, TERRITORY AND ANTA FINANCIAL STATEMENTS - CONTINUED NOTES TO THE TABLES FOR YEAR ENDED 31 DECEMBER 2002 Australian notes to tables 6 and 7 20 New South Wales notes to tables 10 and Victoria notes to tables 14 and Queensland notes to tables 18 and Western Australia notes to tables 22 and South Australia notes to tables 26 and Tasmania notes to tables 30 and Northern Territory notes to tables 34 and Australian Capital Territory notes to tables 38 and Australian National Training Authority notes to tables 42 and v

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7 Introduction About Australian VET Statistics financial information In 2002 more than one in ten working age Australians were enrolled in vocational education and training programs partly or wholly funded from public allocation for VET delivery. In 2002 the annual operation expenditure in the Australian publicly funded VET system was $4.6 billion. This represents, in nominal terms, an increase of 16.7% over levels reported five years ago. This publication provides some insight into how VET in Australia is financed and where the money is spent. It also provides detailed statistics for Australia, the eight states and territories, and the Australian National Training Authority (ANTA), using information from the national collections of VET data, which the NCVER undertakes on behalf of ANTA. The financial information has been extracted from the accrual-based statements prepared by Australia's state and territory governments and ANTA. Key financial data are audited to provide additional assurance on the quality of the reported data and consistent adoption of the requirements of the Australian Vocational Education and Training Management Information Statistical Standard (AVETMISS). The collected financial data support the VET key performance measures that have been adopted by state, territory and Commonwealth ministers. The information presented here includes summaries that focus on: revenues and expenses (to show financial performance) assets and liabilities (to show financial position) cash flows (to show how activities are financed) trends in total revenues and expenses. State and territory governments and ANTA are responsible for the extraction and reporting of the financial information. Explanatory notes to the financial statements have been included at the request of some jurisdictions to assist user understanding. Readers are advised to refer to these notes when using the data. Differences exist between the accounting policies applied by state and territory governments, particularly in respect of the valuation and measurement of investments and property, and plant and equipment. There are other reasons for variations across states and territories such as their size and maturity, population growth in recent years, the degree of decentralisation and the scale of their economies. These can affect comparisons between them. The information contained in this publication complements the information on VET training activity and outputs presented in NCVER s related statistical publications Readers are also referred to the ANTA Annual National Report, Volume 3, < for more information on VET performance measures, and the relationship between the hours of training undertaken by students and the associated cost of this training. Australian Vocational Education and Training Statistics 2002 Financial Information 1

8 Scope of the collection The collection is based on a calendar year. The collection relates to VET provision, which is funded wholly or in part from public funds. It covers all VET activity administered or provided by the main VET training authority in each state and territory, other public VET organisations in that state or territory, and the Australian National Training Authority. The scope of the financial data collection covers all transactions that affect the financial performance, financial position and financing of the publicly funded VET System. This is broader than the scope of the ANTA agreement that focuses on Commonwealth funding and state matching obligations for the VET Sector as well as setting delivery priorities to be achieved. Readers should refer to the ANTA National Report, Volume 3 for more information on the relationship between the hours of training undertaken by students and associated cost under the terms of the ANTA agreement. The operating costs of the VET division of the Department of Education Science and Training (DEST) and some DEST payments made directly to private providers are not included. The collection also excludes private and community providers not in receipt of public funds, the secondary school system, and the higher education system. It is worth noting that the financial information is collected from training providers, and as well as from state and national training authorities. Training providers classify revenues according to their clients status. Consequently revenues received from private clients are classified as non-government fee for service revenue even though the client may have received the funds from government sources other than a state training authority. For these the reasons it is impossible to derive from the data presented in this publication the total government funding allocated to Australia's VET system. Key elements of the financial data are subjected to an independent audit - refer to appendix 2 for sample of the audit certificate. Following the audits, states and territories provide NCVER Ltd with final audited data under the signatures of their chief executive officers. 2 Australian Vocational Education and Training Statistics 2002 Financial Information

9 Section 1: Main Features In : Recurrent revenues totalled more than four billion dollars ($4,357.4 million), up 5.3% over 2001 ($4,138.9 million). As in previous years Commonwealth, state and territory governments were the primary source of recurrent revenues, accounting for 78.8% of total recurrent revenues in Revenues from fee for service operations showed the largest relative growth, up 7.5% over 2001 figures. They generated 11.0% of total revenue in 2002 owing largely to continuing open market activity, course provision to students on a fee for service basis and international student activity. Total recurrent expenditures have increased by 5.8% from $4,357.8 million in 2001 to $4,609.9 million in Expenditure for VET delivery provision and support represented $3,079.3 million or 67.8% of the total expenditure (excluding expenditure by ANTA) compared with $2,923.5 million or 68.3% in 2001 Expenditure on administration and general services was $876.4 million (19.3% of total expenditure) which was 14.4% higher than 2001 expenditure of $765.8 million (17.9%). The net assets for the sector (total assets less liabilities) were $6,157 million, up $209 million over the 2001 net assets of $5,948 million. Financial performance Recurrent revenues Recurrent revenues include revenues from direct recurrent allocations from Commonwealth, state and territory governments, and from normal operating revenues which are for fee for service, or generated from student fees and charges, as well as ancillary trading and other activities. Overall, revenues increased by $218.5 million from $4,138.9 million in 2001 to $4,357.4 million in As in previous years Commonwealth, state and territory governments were the primary source of recurrent revenues, accounting for 78.8% of total recurrent revenues in States and territories provided $2,466.5 million, more than half (56.6%) of total revenue (Table 1). The Commonwealth contributed $965.9 million (22.2%). Other revenues include fee for service $478.6 million (11.0%) as well as student fees and charges $194.6 million (4.5%). Table 1 summarises the operating revenue classifications across jurisdictions and the national trend in recurrent revenues for 2001 and All figures in this publication are in actual dollars for the year shown, not constant prices. Australian Vocational Education and Training Statistics 2002 Financial Information 3

10 Table 1: Recurrent revenues by category, 2001 and 2002 ($ million) Revenue classification NSW Vic Qld WA SA Tas NT ACT ANTA Total Change % State government (a) , Percentage of state total ,347.1 Percentage of state total Commonwealth government Percentage of state total Percentage of state total Fee for service Percentage of state total Percentage of state total Student fees and charges Percentage of state total Percentage of state total Ancillary trading and other Percentage of state total Percentage of state total Total , , , , , ,138.9 (a) State government includes appropriated state recurrent revenue, assumption of liabilities and resources received free of charge. Total revenues in 2002 increased by 5.3% over 2001 with the largest growth of 7.5% for fee for service revenue. State and territory government revenue increased by $119.4 million, or 5.1%, over The largest component of Commonwealth revenue, recurrent funding appropriated through the VET Funding Act, increased by $46.6 million (5.8%) to $856.5 million. Commonwealth government funding associated with ANTA funded Commonwealth specific purpose programs, on the other hand, remained at levels similar to 2001 (2001: $55.1 million; 2002: $56.0 million). Revenues from other Commonwealth specific purpose programs increased by 11.8% to $53.4 million in Total recurrent revenues have risen by $630.3 million (15.2%) between 1998 and Of this increase in revenues, $375.0 million, or 59.5%, came from governments. Revenues from state and territory governments increased by $274.7 million and revenues from the Commonwealth government increased by $100.3 million. While base Commonwealth recurrent revenues increased in each of the years for 1998 to 2002, there was an overall decrease in revenues between 1998 and 1999 due mainly to the cessation of conditional funding for additional traineeships and of Commonwealth labour market programs. Revenues from fee for service 4 Australian Vocational Education and Training Statistics 2002 Financial Information

11 Total recurrent revenues have risen by $630.3 million (15.2%) between 1998 and Of this increase in revenues, $375.0 million, or 59.5%, came from governments. Revenues from state and territory governments increased by $274.7 million and revenues from the Commonwealth government increased by $100.3 million. While base Commonwealth recurrent revenues increased in each of the years for 1998 to 2002, there was an overall decrease in revenues between 1998 and 1999 due mainly to the cessation of conditional funding for additional traineeships and of Commonwealth labour market programs. Revenues from fee for service operations increased by $156.1 million over the four years, contributing 24.8% to the overall growth in revenues. This can be attributed to increased training market participation by public providers. Figure 1 details recurrent revenues from 1998 to Figure 1: Recurrent revenues by category, 1998 to 2002 (actual $ million) Proportional recurrent revenues by category for the five years from 1998 to 2002 are shown in Figure 2. State government revenues represented 56.6% of the total revenues in 2002 compared to 58.8% in 1998 while Commonwealth government revenues were 22.2% of the total in 2002 compared to 23.2% in In 2002, fee for service operations generated 11.0% of total revenue compared to 8.7% in Ancillary trading and other increased by 0.6% from 1998 to 5.8% in 2002 and student fees and charges increased by 0.4% from 1998 to 4.5% in Figure 2: Recurrent revenues by category as a proportion of total recurrent revenues, 1998 to 2002 (%) Australian Vocational Education and Training Statistics 2002 Financial Information 5

12 Recurrent expenditures Recurrent expenditures in 2002 totalled $4,609.9 million, an increase of $252.1 million, or 5.8%, on 2001 (Table 2). The major components of expenditure are: Employee costs, the largest single component of expenditure, is $2,786.1 million, which represents 60.4% of the total in 2002 compared to $2,630.5 million (60.4%) in The supplies, services and other categories represent $1,052.3 million (22.8% of total expenditure) in 2002, up on the 2001 figure of $978.3 million (22.4%). Expenditures to non-tafe providers for VET delivery have decreased by $7.9 million or 2.5% from 2001 to $310.8 million in However, all states and territories except New South Wales reported increased expenditure over New South Wales reported a decrease of $29.8 million because many payments programmed for the 2001/2002 financial year were made in the 2001 calendar year. Depreciation and amortisation accounted for $254.8 million, or 5.5%, of total recurrent expenditure in 2002 and 5.0% of the capital value of buildings, plant and equipment, motor vehicles and other fixed assets. This is at about the same levels as in 2001 when depreciation and amortisation accounted for $251.8 million. Infrastructure capital payments were $305.4 million, compared with $254.8 million for depreciation and amortisation, indicating that on a national basis the VET sector is replacing and improving its level of assets. The remaining expenditure category of grants and subsidies increased by $27.5 million, or 15.4%, to $206.0 million over Table 2 summarises the operating expenditure classifications across jurisdictions and the national trend in recurrent expenditures for 2001 and Australian Vocational Education and Training Statistics 2002 Financial Information

13 Table 2: Recurrent expenditures by category, 2001 and 2002 ($ million) Expenditure category NSW Vic Qld WA SA Tas NT ACT ANTA Total Change % Employee costs , , Percentage of state total ,630.5 Percentage of state total Supplies and services (a) , Percentage of state total Percentage of state total Grants and subsidies (b) Percentage of state total Percentage of state total Payments to non-tafe providers for VET delivery (b) Percentage of state total Percentage of state total Depreciation and amortisation Percentage of state total Percentage of state total Total , , , , , ,357.8 (a) Includes borrowing costs and other operating expenses. (b) Table 2 reports expenditures as classified when expended by the publicly funded organisations (ie registered training organisation and state training authorities). Items annotated with (b) are subsequently expended by grantees or non-tafe providers as employee and supplies and services costs. The longer-term trend for recurrent expenditures is one of growth with an increase, of $660.7 million or 16.7%, in the years 1998 to 2002 (Figure 3). Important components of this increase are an additional $345.3 million (52.3% of the total increase) in employee costs and $171.0 million (25.9% of the total increase) in supplies, services and other. Expenditure in payments to non-tafe providers to deliver VET programs and grants and subsidies has increased by $93.6 million and $30.0 million respectively since Figure 3 details recurrent expenditure categories from 1998 to Australian Vocational Education and Training Statistics 2002 Financial Information 7

14 Figure 3: Recurrent expenditures by category, 1998 to 2002 (actual $ million) As a proportion of the total recurrent expenditure in the five years from 1998 to 2002 for Vocational Education and Training (Figure 4), employee costs remained at near 60% and supplies and services and other has remained at 22%. There has been some growth payments to non-tafe providers, which has showed an increase from 5.5% to 6.7% ($93.6 million) over the five-year period. Figure 4: Recurrent expenditure by category as a proportion of total recurrent expenditures, 1998 to 2002 (%) 8 Australian Vocational Education and Training Statistics 2002 Financial Information

15 Activity expenditures Table 3 summarises the recurrent expenditure by activity across jurisdictions and the national trend in recurrent expenditures by activity for 2001 and In 2002, direct delivery and delivery support services represented $3,079.3 million or 67.8% of the total expenditure (excluding expenditure by ANTA) compared with $2,923.5 million or 68.3% in Expenditure on administration and general services activity increased by 14.4% from $765.8 million (17.9% of total expenditure) in 2001 to $876.4 million (19.3%) in Activity expenditures for property, plant and equipment services increased by 3.7% from $435.7 million in 2001 to $451.9 million in The only activity expenditure that declined between 2001 and 2002 was a decrease of 23.7 million or 15.0% for student and other services. This decrease can largely be attributed to reduced expenditures of $18.4 million for staff redundancies in Table 3: Recurrent expenditures by activity, 2001 and 2002 ($ million) Expenditure activity NSW Vic Qld WA SA Tas NT ACT Total Change % Delivery provision and support , , Percentage of state total , ,923.5 Percentage of state total Administration and general services Percentage of state total Percentage of state total Property, plant and equipment services Percentage of state total Percentage of state total Student services and other services Percentage of state total Percentage of state total Total , , , , , ,283.4 Note: There are many reasons for variations across states and territories. The size and maturity of a state or territory, its relative population growth in recent years, the degree of decentralisation, the scale of its economy, and other factors significantly influence the distribution of state or territory recurrent expenditure across the various activity categories shown in this table. Australian Vocational Education and Training Statistics 2002 Financial Information 9

16 There was an increase of $450.9 million for VET delivery provision and support activities between 1998 and 2002 (Figure 5). This represents 68.2% of the total increase in expenditure (excluding expenditure by ANTA) of $660.7 million. During the same time, expenditures for administration and general services accounted for 21.4% of this total increase by growing from $734.5 million in 1998 to $876.4 million in Expenditure for property, plant and equipment services almost doubled in the period 1998 to 2002 from $277.3 million in 1998 to $451.9 million in 2002, equivalent to 26.4% of the total increase. This was mainly due to increased leasing and contracted maintenance of information technology equipment. Expenditure for students and other services has declined (Figure 6). It is noted that this activity includes expenditures for staff redundancies that have been decreasing since 1998 when $66.2 million was reported compared to $15.3 million for 2002 for staff redundancies. Figure 5: Recurrent expenditure by activity, 1998 to 2002 (actual $ million) As a proportion of the total recurrent expenditure for VET delivery, provision and support remained at twothirds (68%) in the five years from 1998 to 2002 (Figure 6). Figure 6: Recurrent expenditure by activity as a proportion of total recurrent expenditure, 1998 to 2002 (%) 10 Australian Vocational Education and Training Statistics 2002 Financial Information

17 Financial position Assets and liabilities Current assets of $785.6 million exceed current liabilities of $445.0 million, indicating that the VET sector is able to meet its liabilities as and when they fall due (Table 4). The VET sector s net assets (total assets less liabilities) as at 31 December 2002 were reported as $6,157.0 million. The main asset category is property, plant and equipment ($ million), carried at valuation. Land and buildings represent 92.9% of the total property, plant and equipment holdings (Table 5). Commonwealth sourced capital funding assistance for the VET sector is provided by the Australian National Training Authority (ANTA) through the Infrastructure Program. Capital projects cover a wide range of types of facilities in all states and territories, spread across metropolitan and rural areas. As well as providing teaching facilities, projects also include specialist learning facilities, resource centres and student amenities. Expenditure on new technology continues to increase to assist with alternative delivery mechanisms, particularly on-line delivery. As part of state and territory VET planning processes, each jurisdiction prepares a Strategic Infrastructure Plan (SIP) which is a rolling three year plan that sets out strategic priorities and planned aggregate expenditure for the construction of new facilities, upgrade or refurbishment of existing facilities, purchase of major capital equipment and expenditure on maintenance. The Plan is supported by an Annual Infrastructure Statement (AIS) which sets out the infrastructure priorities for the year and contains cash flow data to support the timing and use of Commonwealth funds provided to states and territories under the Infrastructure Program. In addition to the major capital planning process, capital funding is also available under the Infrastructure Program for the establishment or expansion of industry based skill centres and industry skill centres in schools. These are approved on a submission basis against an annual allocation. For 2002, the total budget for capital expenditure was $302 million, of which $170 million (56.0%) came from Commonwealth sources through ANTA, while the remaining $132 million (44.0%) came from state and territory sources. In addition, $15 million for skill centres was available under the sub-components of the Program, as well as $15 million for national projects for new technologies. Table 4 summarises the financial position across jurisdictions and the national trend in financial position for the year ended December 2001 and 2002 respectively. Australian Vocational Education and Training Statistics 2002 Financial Information 11

18 Table 4: Statement of financial position, 2001 and 2002 ($ million) (a) Financial position NSW Vic Qld WA SA Tas NT ACT ANTA Total Change % Current assets Percentage of state total assets Percentage of state total assets Non-current assets , , , Percentage of state total assets , , ,781.1 Percentage of state total assets Total assets , , , , , , ,559.1 Current liabilities Percentage of total liabilities Percentage of total liabilities Non-current liabilities Percentage of total liabilities Percentage of total liabilities Total liabilities Net assets , , , , , ,948.2 (a) Differences exist between the accounting policies applied by the states and territories, particularly in respect of the valuation and measurement of investments and property, and plant and equipment. This can affect comparisons between states and territories. Table 5 summarises the accumulated values of property, plant and equipment assets for 2001 and 2002 and shows the change in the largest asset category of property, plant and equipment for these years. Total net assets have increased by $209.8 million (3.5%). While many asset categories showed increases of lesser significance, the principal asset increase was for property, plant and equipment of $246.9 million, which included $229.0 million for asset revaluations. Offsets to asset increases came from increases in total liabilities of $66.8 million. 12 Australian Vocational Education and Training Statistics 2002 Financial Information

19 Table 5: Property, plant and equipment, 2001 and 2002 ($ million) (a) NSW Vic Qld WA SA Tas NT ACT ANTA Total Change % Land and buildings , , , Percentage of state total , , ,311.4 Percentage of state total Plant, equipment and motor vehicles Percentage of state total Percentage of state total Other Percentage of state total Percentage of state total Total , , , , , ,755.5 (a) Differences exist between the accounting policies applied by the states and territories, particularly in respect of the valuation and measurement of property, and plant and equipment. This can affect comparisons between states and territories. Cash flows Reported cash balances decreased marginally by 2.0% from $450.1 million in 2001 to $440.9 million in Although cash revenues from government and other operating activities increased from $4,359.3 million to $4,578.6 million between these years, there was a greater increase in operating payments from $3,978.2 million in 2001 to $4,214.6 million in 2002, this being a major factor for the marginal decrease in cash balances at the end of Australian Vocational Education and Training Statistics 2002 Financial Information 13

20 Australian National Training Authority 8.1% of recurrent revenue was generated from operations (12.4% in 2001) 91.9% of recurrent revenue was from government appropriations (87.6% in 2001) ($ million) ($ million) Operating revenues Revenue from government (a)** Operating expenses Total assets Total liabilities ** Represents funding for ANTA administration, national projects and national program funding not included by state and territory training authorities Northern Territory 8.0% of recurrent revenue was generated from operations (5.0% in 2001) 92.0% of recurrent revenue was from government appropriations (95.0% in 2001) 55.5% of expenditure was on delivery provision and support activities (53.6% in 2001) 20.1% of expenditure was on administration and general services activities (21.5% in 2001) ($ million) ($ million) Operating revenues Revenue from government (a) Operating expenses Delivery payments to non-tafe providers Total assets Total liabilities Payments for infrastructure capital (b) These public expenditures involved 22,500 students in 2002 Australia 21.2% of recurrent revenue was generated from operations (21.2% in 2001) 78.8% of recurrent revenue was from government appropriations (78.8% in 2001) 67.8% of expenditure was on delivery provision and support activities (68.3% in 2001) 19.3% of expenditure was on administration and general services activities (17.9% in 2001) $ million $ million Operating revenues Revenue from government (a) 3, ,562.5 Operating expenses 4, ,357.8 Delivery payments to non-tafe providers Total assets 6, ,559.1 Total liabilities Payments for infrastructure capital (b) These public expenditures involved 1.69 million VET students in 2002 Western Australia 18.7% of recurrent revenue was generated from operations (20.1% in 2001) 81.3% of recurrent revenue was from government appropriations (79.9% in 2001) 62.5% of expenditure was on delivery provision and support activities (63.6% in 2001) 24.9% of expenditure was on administration and general services activities (23.2% in 2001) ($ million) ($ million) Operating revenues Revenue from government (a) Operating expenses Delivery payments to non-tafe providers Total assets Total liabilities Payments for infrastructure capital (b) These public expenditures involved 133,800 students in 2002 South Australia 26.6% of recurrent revenue was generated from operations (29.1% in 2001) 73.4% of recurrent revenue was from government appropriations (70.9% in 2001) 62.9% of expenditure was on delivery provision and support activities (62.4% in 2001) 24.2% of expenditure was on administration and general services activities (20.7% in 2001) ($ million) ($ million) Operating revenues Revenue from government (a) Operating expenses Delivery payments to non-tafe providers Total assets Total liabilities Payments for infrastructure capital (b) These public expenditures involved 127,700 students in 2002 Tasmania 18.8% of recurrent revenue was generated from operations (18.5% in 2001) 81.2% of recurrent revenue was from government appropriations (81.5% in 2001) 62.7% of expenditure was on delivery provision and support activities (60.6% in 2001) 22.1% of expenditure was on administration and general services activities (21.9% in 2001) ($ million) ($ million) Operating revenues Revenue from government (a) Operating expenses Delivery payments to non-tafe providers Total assets Total liabilities Payments for infrastructure capital (b) These public expenditures involved 32,800 students in 2002

21 FINANCIAL INFORMATION 2002 AUSTRALIA IN SUMMARY There are many reasons for variations across states and territories such as the size and maturity of a state or territory, its relative population growth in recent years, the degree of decentralisation and the scale of its economy. Queensland 13.2% of recurrent revenue was generated from operations (14.4% in 2001) 86.8% of recurrent revenue was from government appropriations (85.6% in 2001) 65.1% of expenditure was on delivery provision and support activities (66.2% in 2001) 23.5% of expenditure was on administration and general services activities (21.8% in 2001) ($ million) ($ million) Operating revenues Revenue from government (a) Operating expenses Delivery payments to non-tafe providers Total assets 1, Total liabilities Payments for infrastructure capital (b) These public expenditures involved 298,900 students in 2002 New South Wales 17.4% of recurrent revenue was generated from operations (15.3% in 2001) 82.6% of recurrent revenue was from government appropriations (84.7% in 2001) 72.6% of expenditure was on delivery provision and support activities (73.7% in 2001) 16.0% of expenditure was on administration and general services activities (14.5% in 2001) ($ million) ($ million) Operating revenues Revenue from government (a) 1, ,223.0 Operating expenses 1, ,445.5 Delivery payments to non-tafe providers Total assets 2, ,163.3 Total liabilities Payments for infrastructure capital (b) These public expenditures involved 557,200 students in 2002 Australian Capital Territory 21.4% of recurrent revenue was generated from operations (21.6% in 2001) 78.6% of recurrent revenue was from government appropriations (78.4% in 2001) 75.7% of expenditure was on delivery provision and support activities (74.7% in 2001) 9.4% of expenditure was on administration and general services activities (9.7% in 2001) ($ million) ($ million) Operating revenues Revenue from government (a) Operating expenses Delivery payments to non-tafe providers Total assets Total liabilities Payments for infrastructure capital (b) These public expenditures involved 19,800 students in 2002 Victoria 32.1% of recurrent revenue was generated from operations (32.3% in 2001) 67.9% of recurrent revenue was from government appropriations (67.7% in 2001) 67.4% of expenditure was on delivery provision and support activities (67.3% in 2001) 18.0% of expenditure was on administration and general services activities (17.1% in 2001) Notes (a) Figures represent recurrent and capital funding (b) Cash figures for both years ($ million) ($ million) Operating revenues Revenue from government (a) Operating expenses 1, ,159.5 Delivery payments to non-tafe providers Total assets 2, ,884.0 Total liabilities Payments for infrastructure capital (b) These public expenditures involved 497,400 students in 2002

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23 Section 2: State, Territory and ANTA Financial Statements Table 6: Australian Statement of Financial Performance for the Year Ended 31 December REVENUES FROM ORDINARY ACTIVITIES Fee for Service (note 1) 478, , , , ,540 Ancillary Trading 114, , ,331 81,997 85,942 Student Fees and Charges 194, , , , ,456 Other (note 2) 137, , , , ,753 Total Revenues from Ordinary Activities 925, , , , ,691 EXPENSES FROM ORDINARY ACTIVITIES Employee Costs (note 3) 2,786,072 2,630,529 2,509,857 2,397,717 2,440,777 Supplies and Services (note 4) 1,026, , , , ,878 Grants and Subsidies (note 5) 205, , , , ,043 Payments to Non-TAFE Providers for VET Delivery 310, , , , ,162 (note 6) Depreciation and Amortisation 254, , , , ,911 Other 23,865 33,144 20,160 13,200 13,407 Total Expenses from Ordinary Activities excluding 4,608,064 4,356,663 4,160,390 3,938,775 3,949,178 Borrowing Costs Expense Borrowing Costs 1,846 1,113 1, Total Expenses 4,609,910 4,357,776 4,161,902 3,938,775 3,949,178 Surplus (Deficit) from Ordinary Activities (3,684,892) (3,478,748) (3,306,704) (3,241,209) (3,279,487) Revenue from Government (note 7) 3,769,631 3,562,464 3,415,377 3,375,243 3,363,991 Change in Net Assets before Extraordinary Items 84,73983, , ,034 84,504 Extraordinary Items (1,491) 0 (4,372) (26,841) (14,313) Change in Net Assets after Extraordinary Items 83,248 83, , ,193 70,191 Capital Charge 93,795 72,795 51,422 26,707 7,717 Net Assets Received/(Transferred) on Restructure* 0 0 (137) (77,769) 117,043 Net Increase/(Decrease) in Asset Revaluation 229, ,300 59, Reserve TOTAL CHANGES IN EQUITY 218, , ,457 2, ,517 * From 2002 Net Assets Received/(Transferred) on Restructure are disclosed in Contributed Capital in the Statement of Financial Position Australian Vocational Education and Training Statistics 2002 Financial Information 17

24 Table 7: Australian Statement of Financial Position as at 31 December CURRENT ASSETS Cash 431, , , , ,195 Receivables 152, , , , ,996 Investments 126, , , , ,235 Other 75,351 83,610 89,187 91,605 64,083 Total Current Assets 785, , , , ,509 NON-CURRENT ASSETS Receivables 12,126 2, Investments 2,535 4,321 3,272 2,714 1,747 Property, Plant & Equipment (note 8) 6,002,406 5,755,542 5,564,784 5,485,098 5,388,831 Other, Including Intangibles 32,021 18,659 26,823 8,587 14,969 Total Non-Current Assets 6,049,088 5,781,123 5,595,455 5,496,399 5,405,859 TOTAL ASSETS 6,834,732 6,559,086 6,379,574 6,161,492 6,088,368 CURRENT LIABILITIES Payables 289, , , , ,818 Interest-bearing Liabilities 6,075 5,664 5,969 2,682 2,993 Provisions 134, , , , ,018 Other 19,231 14,444 19,673 24,876 26,666 Total Current Liabilities 449, , , , ,495 NON-CURRENT LIABILITIES Payables ,659 27,734 Interest-bearing Liabilities 13,287 11,858 14,909 3,228 5,185 Provisions 212, , , , ,695 Other 920 1, Total Non-Current Liabilities 227, , , , ,847 TOTAL LIABILITIES 677, , , , ,342 NET ASSETS 6,157,040 5,948,207 5,793,548 5,613,326 5,566,026 EQUITY Accumulated Surpluses/(Losses) 4,079,237 4,439,298 4,431,968 4,258,300 4,323,095 Reserves 1,746,287 1,516,725 1,361,580 1,355,026 1,242,931 Contributed capital 331,516 (7,816) TOTAL EQUITY 6,157,040 5,948,207 5,793,548 5,613,326 5,566,026 Note: Owing to reclassifications required by changes to Accounting Standards there occurs a break in series between 1999 and 2000 for the categories Payables, Interest-bearing Liabilities and Provisions in current and non-current liabilities. 18 Australian Vocational Education and Training Statistics 2002 Financial Information

25 Table 8: Australian Statement of Cash Flows for the Year Ended 31 December CASH FLOWS FROM OPERATING ACTIVITIES RECEIPTS Fee for Service 504, , , , ,868 Ancillary Trading 107, ,000 99,939 71,261 77,123 Student Fees and Charges 193, , , , ,400 Other 142, , , , ,146 Total Receipts 948, , , , ,537 PAYMENTS Employee Costs 2,630,364 2,506,971 2,382,987 2,210,164 2,302,450 Supplies and Services 1,044, , , , ,982 Grants and Subsidies 188, , , , ,616 Payments to Non-TAFE Providers for VET Delivery 330, , , , ,570 Borrowing Costs 2,478 1,262 1, Other 17,977 31,982 18,255 11,247 27,220 Total Payments 4,214,593 3,978,206 3,749,189 3,569,534 3,610,838 NET CASH FLOWS FROM OPERATING ACTIVITIES (3,266,135) (3,076,960) (2,918,854) (2,891,250) (2,904,301) CASH FLOWS FROM INVESTING ACTIVITIES RECEIPTS Sales of Property, Plant and Equipment 13,880 10,484 19,665 19,864 8,817 Sales/Maturities of Investments 2,667 2,144 7,360 13,100 13,539 Loans and Advances returned 1, Total Receipts 18,037 12,628 27,939 32,964 22,356 PAYMENTS Infrastructure Capital 305, , , , ,670 Investments 19,115 6,558 12,103 11,967 3,322 Loans and Advances advanced Total Payments 324, , , , ,906 NET CASH FLOWS FROM INVESTING ACTIVITIES (306,297) (310,556) (262,538) (272,000) (256,550) CASH FLOWS FROM FINANCING ACTIVITIES RECEIPTS Borrowings raised 3, ,581 Capital Injections Total Receipts 3, ,581 PAYMENTS Borrowing Redemptions 2,293 2,792 10,468 3, Finance Lease Payments (excl interest component) 3,324 1,283 2,436 2,280 (916) Capital Returns 65,253 65,734 51,422 26,707 0 Total Payments 70,870 69,809 64,326 32,387 (98) NET CASH FLOWS FROM FINANCING ACTIVITIES (66,871) (69,456) (64,326) (31,624) 8,679 CASH FLOWS FROM GOVERNMENT Recurrent Appropriations 3,314,491 3,184,913 3,080,179 2,845,294 2,851,626 Capital Appropriations 324, , , , ,165 Other (8,951) (1,813) 347 (29,920) (72,846) NET CASH FLOWS FROM GOVERNMENT 3,630,109 3,458,023 3,381,221 3,143,748 3,081,945 NET INCREASE (DECREASE) IN CASH (9,194) 1, ,503 (51,126) (70,227) NET MOVEMENT IN CASH HELD Opening Cash Held 450, , , , ,851 Closing Cash Held 440, , , , ,624 Australian Vocational Education and Training Statistics 2002 Financial Information 19