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ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsStatement, Victoria’s plan to improve outcomesin early childhood, including:• improving the quality of early childhoodservices, including kindergartens andmaternal and child health services• enhancing early intervention services• improving staff qualifications in early yearsservices.Future of Schooling in AustraliareportIn September 2007, the Future of Schoolingin Australia report was launched by theVictorian Premier on behalf of the Councilfor the Australian Federation. The report wassubsequently presented to MCEETYA by theMinisters for Education. Agreement has beenachieved, through the Australian EducationSystems Officials Committee (AESOC) andMCEETYA, for the development of the newNational Declaration on Educational Goals forYoung Australians, building on the Future ofSchooling in Australia report, to be releasedin Melbourne in December 2008.Legislation reformReview of Children’s ServicesAct 1996 and RegulationsThe Children’s Services Act 1996 (the Act)provides for the regulation of children’sservices in Victoria. In 2005, the Governmentcommitted to regulating family day-care andoutside school hours care as part of a widerreview of the Children’s Services Regulations.The Children’s Services LegislativeAmendment Bill was passed by Parliament on27 May 2008 and was given royal assent on3 June 2008. The new regulations will ensurea stronger regulatory framework for children’sservices in Victoria to complement theCommonwealth Government’s reform agendafor the improvement of services for children intheir early years. Work on the new regulationswill continue in 2008–09 with:• release of the Regulatory Impact Statement(RIS) and draft regulations• public consultation on the RIS andassessment of feedback• development of resources to assist sectorcompliance with the new regulations• training of Departmental staff responsible forregulation and staff employed in services,starting in March 2009• new regulations commencing 25 May 2009.Statutory authoritiesThe contributions of the Department’sstatutory authorities to the achievement of theGovernment’s goals and targets for educationand early childhood development have beensignificant.In 2007–08, a new statutory authority, theVictorian Registration and QualificationsAuthority (VRQA), was created. The VRQAwas created under the Education and TrainingReform Act 2006 and is responsible for theregulation of education and training providersand qualifications in Victoria – from homeschooling to higher education.Priorities 2008–09The past year has been an exciting andchallenging one. We have worked to establishthe new Department of Education and EarlyChildhood Development and simultaneouslyprogress, with our two Ministers, Victoria’shuman capital reform agenda in relationto the learning and development of allVictoria’s young people. I am pleased with theachievements we have made in this regardand wish to thank my colleagues and staff fortheir hard work and dedication in 2007–08.8DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsLooking forward to 2008–09, I anticipate thatkey priorities will include:• implementation of the new Blueprintfor Education and Early ChildhoodDevelopment• continued implementation of the VictorianSchools Plan• pursuit of collaborative federalism throughCOAG and MCEETYA, with a particularfocus on ensuring that young Victoriansbenefit• further integration of education and earlychildhood development• establishment of an organisationaldevelopment strategy for the Departmentin tandem with the ongoing integrationagenda.Peter DawkinsSecretarySecretary’s report9

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsRevenues and expenses associated withthese transferred measures for the periodup to the date of transfer are recorded in theDepartment’s financial report for 2007–08 onpages 68–123.Corporate governanceThe Department’s corporate governanceframework coordinates the structures andprocesses that support effective directionsetting and decision making, the assessmentand treatment of risk, compliance andaccountability requirements, and themonitoring and optimising of performance.It is underpinned by a set of values andprinciples of conduct as outlined in theDepartment’s People Principles.Departmental governance is structuredaround the Portfolio Board, the DepartmentalLeadership Team and advisory ExecutiveCommittees.Portfolio BoardThe Portfolio Board determines strategicdirections and monitors the effectiveness ofthe portfolio in achieving the Department’sgoals and objectives. It meets quarterlyand comprises the Secretary and DeputySecretaries of the Department, and the ChiefExecutive Officer of the Victorian Curriculumand Assessment Authority (VCAA). TheChief Executive Officer is included due to thesignificant policy advisory role of the VCAA.The Portfolio Board’s deliberations areinformed by evidence of progress, using bothoutcome and lead indicators to measureperformance of the strategic priorities inthe corporate plan as well as the annualpriority projects. In-depth analysis informsPortfolio Board discussion and subsequentdevelopment of policy options and responses.Departmental Leadership TeamThe Departmental Leadership Team (DLT)comprises the Secretary and the DeputySecretaries from each of the five Offices ofthe Department. The DLT meets weekly tomonitor key initiatives and to consider criticalpolicy, program and resource matters. TheDLT takes responsibility for driving the policyagenda set by Government, as reflectedin Ministerial Directions and Statements. Italso manages and coordinates stakeholderinteraction and monitors progress against theDepartment’s Corporate Plan. Members ofthe DLT have key strategic, operational andfinancial responsibilities and are accountablefor Departmental outcomes.In 2007–08, the DLT underwent severalchanges to its membership.• Following the August 2007 machineryof-governmentchanges, Michael Whitewas invited to join the DLT, initially asthe Executive Director of the Office forChildren and, following the Department’sinternal realignment, as the Acting DeputySecretary for the Office for Children andEarly Childhood Development. Mr Whitemade a significant contribution to thework of the DLT over this period andprovided critically important leadershipin the establishment of the new Officefor Children and Early ChildhoodDevelopment.• In October 2007, after almost three yearsas Deputy Secretary with the Department,Katherine Henderson transferred fromcentral office to Western MetropolitanRegion to take up the role of RegionalDirector.• Tony Cook, then General Manager ofthe Department’s Education Policy andResearch Division, was appointed as thenew Deputy Secretary of the Office forPlanning, Strategy and Coordination andtook up the position in January 2008.Overview11

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations• In March 2008, Robert Griew wasappointed as the new Deputy Secretary ofthe Office of Children and Early ChildhoodDevelopment. Mr Griew commenced thisrole on 7 July 2008.Executive committeesThe work of the DLT is supported by eightadvisory executive committees:• Portfolio Audit• Resources• People• Statutory Authorities• Research• Regional Management• Infrastructure Investment• Accredited Purchasing Board.Departmental Leadership Teammember summaryProfessor Peter DawkinsSecretaryProfessor Peter Dawkins is Secretaryof the Department of Education and EarlyChildhood Development. He joined theDepartment in 2006 following a period asDeputy Secretary at the Victorian Departmentof Treasury and Finance. In 2006–07,Professor Dawkins chaired the SteeringCommittee that produced the Future ofSchooling in Australia report for the Councilof the Australian Federation. He has alsobeen a significant contributor to the COAGNational Reform Agenda, especially theHuman Capital Reform Agenda, first asDeputy Secretary at the Victorian Treasuryand more recently as a member of theCOAG Productivity Agenda Working Group.Prior to joining the public service, ProfessorDawkins was an academic economist whoworked at a number of British and Australianuniversities. From 1996 to 2005 he was theRonald Henderson Professor and Director ofthe Melbourne Institute of Applied Economicand Social Research at the University ofMelbourne. Professor Dawkins has undertakenextensive research and published widelyon economic and social issues, especiallyrelating to labour markets, education andtraining policy, welfare to work issues and theeconomics of industry and innovation.Mr Tony CookDeputy SecretaryOffice for Planning, Strategy andCoordinationMr Tony Cook has been the Deputy Secretary,Office for Planning, Strategy and Coordinationsince January 2008. Prior to this, Mr Cookheaded the Department’s Education Policy andResearch Division, responsible for educationpolicy development and the Department’sresearch agenda. Prior to moving to Victoria,Mr Cook was Assistant Director of theAssessment and New Basics Branch withEducation Queensland. He is a registeredprimary school teacher and has also beena Deputy Principal and taught in schools inQueensland and the United Kingdom.The Office for Planning, Strategy andCoordination is responsible for theDepartment’s overall strategic and corporatepolicy agenda. It coordinates support for theportfolio Ministers in relation to external andinternal communications, data and evaluation,good governance, risk management anddecision making. It also develops policyrelating to the broader social, economicand political landscape.Dr Dahle SuggettDeputy SecretaryOffice for Policy, Research andInnovationDr Dahle Suggett was appointed DeputySecretary in March 2004, with responsibilityfor leading reforms in teaching and learningand post-compulsory schooling. CurrentlyDr Suggett’s responsibilities include policydevelopment, research and innovation acrossthe birth to adulthood spectrum. From 199812DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsto 2004, Dr Suggett was a partner in the AllenConsulting Group, specialising in public policyadvice and business management. Prior to thisshe was in management positions with ExxonChemical and subsidiaries in Australia andthe United States, Assistant Commissionerof the Commonwealth Schools Commissionand Executive Director of the CommonwealthYouth Bureau. She commenced working life asa teacher in Victorian government secondaryschools. Dr Suggett has published in theareas of business and government relations,education, and employment. She lectures inpublic policy at the University of Melbourne.The Office for Policy, Research and Innovationleads educational policy development,research and innovation for the Departmentand has responsibility for designing schoolsystem reform. This includes furtheringconnections between the government schoolsector and non-government schools to meetthe educational needs of all young Victorians.The Office also has policy responsibility forleading the development of the next stageof educational reform in Victoria, improvingtransition pathways for young people andfurthering international education.Mr Darrell FraserDeputy SecretaryOffice for Government SchoolEducationMr Darrell Fraser joined the Department asDeputy Secretary on 14 January 2004. Priorto joining the Department’s central office,Mr Fraser was principal of Glen WaverleySecondary College. Mr Fraser has receivednational recognition for his contribution toeducation through leadership, innovativepedagogy and leading practice in informationand communications technology (ICT) andIntranet/Extranet solutions.MR Jeff RosewarneDeputy SecretaryOffice for Resources andInfrastructureMr Jeff Rosewarne returned to the Departmentin May 2003 after six years in executivepositions in the Department of Treasuryand Finance, the most recent as Director,Budget Formulation. This involved providinggovernment with performance and budgetadvice on a wide range of portfolios, includingHuman Services, Justice and Infrastructure.As Deputy Secretary of the Office forResources and Infrastructure, Mr Rosewarnehas primary responsibility for the developmentand implementation of the resource strategyfor the Department. The Office providesportfolio-wide services in the areas of finance,information technology, corporate services,resources strategy, human resources andinfrastructure. Recent projects managed withinthe Office for Resources and Infrastructureinclude the State Budget and ExpenditureReview Committee process, the StudentResource Package Benchmarking Review, thenegotiation process for principal and teacherworkforce Enterprise Bargaining Agreement,the $1.9 billion being invested to rebuild,renovate or extend 500 schools by 2011 underthe Victorian Schools Plan, and developmentof public–private partnerships for 11 newschools.The Office for Resources and Infrastructureis responsible for the development andimplementation of policies and proceduresfor the Department in finance, infrastructure,information technology, human resources andcorporate services. The Office provides directservices to the Department’s corporate officesand to government schools.The Office for Government School Educationis responsible for management, coordinationand implementation of high-qualitygovernment school education across Victoria.Overview13

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsMR Michael WhiteActing Deputy SecretarYOffice for Children and EarlyChildhood DevelopmentMichael White was appointed InterimExecutive Director of the Office for Children on27 August 2007. After the internal realignmentof the Department following the machinery-ofgovernmentchanges, Mr White was appointedActing Deputy Secretary of the Office forChildren and Early Childhood Development.Prior to his role with the Office for Childrenand Early Childhood Development, Mr Whitewas Director of School Education and ChiefExecutive Officer of the Victorian Curriculumand Assessment Authority (VCAA). Mr Whitehas had eight years experience in the VictorianPublic Service.The Office for Children and Early ChildhoodDevelopment was established in December2007 to lead reform in the early childhoodsector and build a seamless service systemin partnership with Victorian schools, localgovernment, community organisations andthe Commonwealth. The Office is responsiblefor leading action across government andin the community to sustain and improveoutcomes for children and young peopleand their families.14DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsOrganisation chart as at 30 June 2008Minister for EducationProfessor Peter DawkinsSecretaryMinister for Children andEarly Childhood DevelopmentMichael WhiteActing Deputy SecretaryOffice for Children and EarlyChildhood DevelopmentDarrell FraserDeputy SecretaryOffice for GovernmentSchool EducationTony CookDeputy SecretaryOffice for PlanningStrategy and CoordinationDr Dahle SuggettDeputy SecretaryOffice for Policy, Researchand InnovationJeff RosewarneDeputy SecretaryOffice for Resourcesand InfrastructureSusan McDonaldGeneral ManagerEarly Childhood StategicPolicy and ProjectsDina GuestGeneral ManagerGroup CoordinationColin TwisseGeneral ManagerExternal Relations andStrategic CoordinationIan BurrageGeneral ManagerEducation Policy andResearchGail HartGeneral ManagerCorporate ServicesJeanette NargorckaGeneral ManagerEarly Childhood ProgramsIan ClaridgeActing General ManagerStudent Wellbeing andSupportAndrew AbbottActing General ManagerStatewide Outcomesfor ChildrenGeorge McLeanGeneral ManagerYouth TransitionsErle BourkeGeneral ManagerInformation TechnologyDr Sharon GoldfieldSenior Medical AdvisorChild HealthJohn AllmanGeneral ManagerEducation Regeneration andCommunity PartnershipsJulie AllistonGeneral ManagerCommunicationsJohn SullivanGeneral ManagerSystem PolicyTony BugdenGeneral ManagerHuman ResourcesMadeleine SmithActing General ManagerOperationsJudy PetchGeneral ManagerSchool Workforce Reformand School ImprovementJames KellyGeneral ManagerCorporate Planning,Strategy and AuditDiane JosephGeneral ManagerInnovation and NextPracticeAdam TodhunterEducation ChiefInformation OfficerDianne PeckGeneral ManagerStudent Learning ProgramsDr Sara GloverGeneral ManagerData and EvaluationSue ChristophersGeneral ManagerInternational EducationClaire BritchfordChief Financial OfficerFinancial ServicesNorthern MetropolitanWayne CraigBroadmeadowsRegenerationDavid BrooksEastern MetropolitanDr Jim WatterstonSouthern MetropolitanPeter GreenwellWestern MetropolitanKatherine HendersonJohn McCarthyGeneral ManagerCommonwealth–StateRelationsJim MilesGeneral ManagerResources andInfrastructure StrategyDr Peter StewartGeneral ManagerInfrastructureBarwon South WesternGrant RauGippslandMichonne van ReesGrampiansMalcolm MillarHumeStephen BrownLoddon MalleeRon LakeOverview15

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsHuman resourcesAs at June 2008, there were 54,021 fulltimeequivalent (FTE) staff employed by theDepartment. These staff were distributedacross schools, central office and regions asindicated in the following table.Full-time equivalent staff on pay as at June 2008LocationFTESchoolsTeaching 40,447Non-teaching 11,483Subtotal 51,930Central office and regions 2,091Total * 54,021* Total may not add up due to roundingFurther workforce statistics are contained inAppendix 4 on pages 139–146.‘Your Job, Your Say’ surveyDuring May 2008, the Department conductedan organisational health survey, ‘Your Job,Your Say’, using a new provider. The surveycollects information about the organisationaland people management practices thatinfluence employee wellbeing andorganisational performance in central andregional offices.The survey provides:• Departmental results against other globalbenchmarks in the public sector andeducation industry• information on a range of indicatorsthat reflect the key people managementissues underpinning staff wellbeing andperformance which drive employeeengagement• information on key strengths and areasfor improvement for teams across theDepartment• information on key strengths and areas forimprovement for all people managers.The response rate for 2008 at 70.3 per centwas particularly encouraging as it shows thatstaff value the opportunity to provide feedbackon workplace issues.The workgroup results provided teamsacross the Department with key indicators ofwellbeing and performance. Teams could thenplan and implement strategies for improvingthe way they work and collaborate with otherteams to achieve their goals and objectivesin 2008–09.The individual leadership reports for managersprovide information on the effectivenessof their leadership style in supporting anddeveloping their team to achieve sharedgoals and objectives.Summary of financialresultsThe Department’s portfolio as described inthe 2007–08 State Budget papers and as aconsequence of machinery-of-governmentchanges comprises six key output areas:• Early Childhood Services• Adolescent Health Services• Compulsory Years• Later Years and Youth Transitions• Services to Students• Policy and Regulation.The financial statements presented in thisannual report relate to the controlled operationsof the Department and include corporateactivities and 1587 government schools. Theyalso include the results for the financial yearperiod from 1 September 2007 for AdolescentHealth Services, Child Health Services andSupport Services, Early Childhood Educationand Early Childhood Intervention Serviceswhich transferred from DHS following themachinery-of-government changes.Other agencies within the portfolio reportseparately and therefore are not includedwithin the controlled financial transactions of16DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsthe Department. These entities include theVCAA, the Victorian Institute of Teachingand the VRQA.The table below provides information on theDepartment’s financial results for 2007–08and comparisons with the previous fourfinancial years.Apart from the financial impact of themachinery-of-government changes discussedabove, there were no significant changesin financial position during the reportingperiod year.The Department is not aware of any eventsthat adversely affected the achievement ofoperational objectives for the year.There were no events subsequent to thebalance date that would have a significanteffect on the operations of the Department.2007–08 resultThe Department’s result from ordinary activitiesfor 2007–08 was $17.6 million, compared with$64.5 million in 2006–07. The Department’snet result has reduced primarily due to greaterexpenditure for the new Enterprise BargainingAgreement for teachers, higher expenditure byschools on maintenance and the inclusion ofservice agreement payments to child-care andkindergarten providers.Revenue and expensesThe growth in the Department’s revenueand expenditure primarily reflects the highlevel of service delivery achieved from theefficient delivery of output initiatives on behalfof the Government, the inclusion under themachinery-of-government changes of theOffice for Children, general inflation-relatedindexation, offset by a decrease in schoolgeneratedlocally raised funds as comparedto the previous year.During the year, the Department increasedfunding for initiatives approved in the 2007–08State Budget and continued implementation offunding for initiatives approved in the previousbudget for programs such as the Student withDisabilities, School Start Bonus and Schoolsfor Innovation and Excellence grants.AssetsThe value of the Department’s assetsincreased by $2,446.9 billion in 2007–08.This increase reflects the revaluation of landand buildings assets and early paymentof July 2008 service fees to kindergartens.It also reflects an increase in schools’ cashand investment balances due to unspentadditional third party revenue generatedby schools.2003–04$ million2004–05*$ million2005–06$ million2006–07$ million2007–08$ millionOperating revenueIncome from State Government 5,757.0 6,205.9 6,600.5 6,391.7 6,428.1Other revenue 429.5 491.5 441.3 670.1 697.4Total operating revenue 6,186.5 6,697.4 7,041.8 7,061.8 7,125.6Operating expenses 6,170.8 6,524.0 6,894.2 6,997.3 7,108.0Operating surplus 15.7 173.4 147.6 64.5 17.6Total assets 9,368.1 9,217.0 10,331.8 10,711.6 13,158.6Total liabilities 1,111.9 1,170.0 1,228.3 1,326.8 1,493.3Net assets 8,256.1 8,047.0 9,103.5 9,384.8 11,665.3Net year end cash position 384.7 463.8 477.3 699.6 769.9* Comparative change: Year 2004–05 in the above table has changed due to A-IFRS accounting adjustments required in the Department’s financial statements(see Note 30 in the financial statements of this report).Overview17

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsGoals and targetsIn 2005, the Government released an updateto Growing Victoria Together, which set out thefollowing targets for the Department (now alsoincluding goals for early childhood):• the wellbeing of young children will improve• the proportion of Victorian primary schoolstudents achieving the national benchmarklevels for reading, writing and numeracy willbe at or above the national average• by 2010, 90 per cent of young people inVictoria will successfully complete Year 12or its educational equivalent• the number of early school leavers who areunemployed after six months will decline.Progress against these targets is shown in thefollowing table.Target Measure 2001 2002 2003 2004 2005 2006 2007 CommentThe wellbeing of youngchildren will improve.Proportion of Victorian primaryschool students achieving thenational benchmark levels forreading, writing and numeracywill be at or above thenational average. (d)By 2010, 90 per cent ofyoung people will successfullycomplete Year 12 or itseducational equivalent.The number of early schoolleavers who are unemployedafter six months will decline.The proportion of infantswho were fully breastfedat three months (a)The proportion of infantswho were fully breastfedat six months (a)53.1 52.0 50.6 50.5 48.5 51.8 51.8 The proportion of Victorian infants fullybreastfed in 2006–07 is at the same level asthe previous year.40.1 38.8 37.9 38.2 37.0 38.7 38.0 The proportion of Victorian infants fullybreastfed in 2006–07 is generally at the samelevel as the previous year.The proportion of 93.6 94.1 95.1 93.8 94.4 93.0 94.0 The participation rate has increased comparedin kindergarten (b) (c)4-year-olds participatingto 2006.Percentage achievingnational benchmark inYear 3 readingPercentage achievingnational benchmark inYear 3 writingPercentage achievingnational benchmark inYear 3 numeracyPercentage achievingnational benchmark inYear 5 readingPercentage achievingnational benchmark inYear 5 writingPercentage achievingnational benchmark inYear 5 numeracy89.0(90.3)92.0(92.3)90.4(92.4)90.5(93.0)91.7(92.7)91.5(93.0)93.6(93.4)In 2007, Victoria was at or above the nationalaverage (figure in brackets) for each of thesemeasures.94.7 95.3 96.1 97.1 97.5 96.6 94.1 The 2007 results were released by(89.5) (93.6) (92.2) (92.9) (92.8) (93.9) (93.0)MCEETYA (e) in September 2008.94.1 92.0 95.8 96.0 95.5 95.9 95.0(93.9) (92.8) (94.2) (93.7) (94.1) (93.0) (93.2)90.9 87.3 89.6 87.6 88.7 89.9 91.4(89.8) (89.3) (89.0) (88.7) (87.5) (88.4) (89.2)92.4 94.9 95.6 93.4 97.4 97.6 96.0(94.0) (93.6) (94.1) (94.2) (93.3) (93.8) (94.1)94.7 93.2 94.7 94.7 95.4 94.9 91.5(89.6) (90.0) (90.8) (91.2) (90.8) (90.3) (89.0)Percentage of 20–24-year-olds in Victoriawho have completedYear 12 or equivalent (f) 82.1 82.8 84.9 84.7 83.9 85.5 86.1 The Victorian result for 2007 was higher thanthe national average and higher than the otherAustralian states. This time series was revisedby the Australian Bureau of Statistics in 2008.Percentage of 19-yearoldsin Victoria who(h)75.7have completed Year12 or equivalent (g)75.8(h)78.4(h)78.8(i)77.2(i)78.5(i)77.6 The percentage of young people successfullycompleting Year 12 or equivalent has grownsince 2001. This time series was revisedin 2008, based on the Australian Bureau ofStatistics final estimated resident population.Percentage of earlyschool leavers who areunemployed (j) 18.5 15.0 14.3 14.6 13.5 The samples used for the On Track surveyfor young people who have left school earlyare relatively small. These results should beinterpreted with care.(a) This measure is reported by financial year, for example progress reportedfor 2001 applies to financial year 2000–01, and so on.(b) The Australian Bureau of Statistics has released its final set of populationestimates and changes in these estimates may impact on this measure.(c) Participation figures are based on the number of 4-year-old children enrolledin the first year of state-funded kindergarten programs.(d) Numbers are subject to measurement error of up to 1.9 percentage points.Figures in brackets show the national average for the percentage of primarystudents achieving the national benchmarks for reading, writing and numeracy.(e) Ministerial Council on Education, Employment, Training and Youth Affairs.(f) Sourced from the Australian Bureau of Statistics annual Survey ofEducation and Work.(g) Sourced from administrative data from the Department of Education andEarly Childhood Development and the Department of Innovation, Industryand Regional Development and Australian Bureau of Statistics populationestimates.(h) Includes an estimate of completions in the VET sector, based upon the2001 Census of Population and Housing.(i) Data revision based on the final Australian Bureau of Statistics estimatedresident population.(j) As measured by the On Track early leavers sample survey.18DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsOutputs and performance measuresThis section reports on achievement againstoutputs and performance measures aspublished in the 2007–08 State BudgetPapers (Budget Paper no. 3, chapter 3). Themeasures include those transferred fromDHS following machinery-of-governmentchanges. The outputs cover the categories ofearly childhood services, compulsory years,later years and youth transitions, services tostudents, adolescent health services (schools)and policy and regulation.The Department’s outputs make a significantcontribution to the following key Governmentoutcomes:• high-quality education and training forlifelong learning• high-quality, accessible health andcommunity services• a fairer society that reduces disadvantageand respects diversity.• growing and linking all of Victoria• sound financial management• building friendly, confident and safecommunitiesThe actuals reflect those submitted to theDepartment of Treas\ury and Finance in theend of June 2008 Departmental BusinessReport.All targets and actuals refer to the 2007calendar year unless otherwise stated.Early childhood servicesEarly childhood services outputs, throughthe funding of a range of services, providesupport to children in the early years, includingkindergarten and childcare, maternal andchild health, school nursing for primaryschool children and early intervention servicesfor children with a disability. The three outputsof early childhood services are child healthand support services, early childhoodeducation and care, and early childhoodintervention services.Outputs and performance measures19

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsChild health and support servicesThis output involves provision of communitybasedmaternal and child health services toall families with children aged 0–6 years andschool nursing services for primary schoolchildren, that provide developmental healthsurveillance, early intervention, parentingsupport and health education.Performance measureUnit ofmeasure2007–08Target2007–08ActualCommentsQuantityTotal number of clients (aged 0–1) number 65,000 67,080 The higher 2007–08 actual (refers to 2006–07 financial year)reflects the higher levels of service delivery.Prep-aged students assessed by school nurses number 57,000 55,153 While all Prep-aged students are offered a healthassessment by school nurses, not all parents consent andtake up the offer.QualityMaternal and child health clients with children aged0–1 years receiving enhanced maternal and childhealth servicesProportion of Prep-aged students assessed byschool nursesPrimary school-aged students with completed careplans receiving follow-up careper cent 7.0 12.6 2007–08 target and actual refer to 2006–07 financial year.The accuracy of the data was improved as a result ofthe move from manual data recording to electronic datacollection.per cent 90.0 89.6 While all Prep-aged students are offered a healthassessment by school nurses, not all parents consent andtake up the offer.per cent 100 100TimelinessChildren aged 0 to 1 month enrolled at maternaland child health services from birth notificationsCostper cent 98.0 99.3 The higher 2007–08 actual (refers to 2006–07 financial year)reflects higher levels of service delivery.Total output cost $ million 73.4 70.7 Financial year measure.Early childhood education and careThis output involves provision of kindergartenand childcare services. These services includethe licensing and monitoring of centre-basedchildren’s services, and specialist servicesto improve access to kindergartens fordisadvantaged children.Performance measureUnit ofmeasure2007–08Target2007–08ActualCommentsQuantityChildren funded to participate in kindergarten number 58,600 59,465Kindergarten participation rate per cent 96 94 The target and actual refer to the 2007 calendar year andwere previously published in the Department of HumanServices’ 2006–07 Annual Report. It is an improvement overthe 93 per cent actual for the 2006 calendar year. This issignificantly higher than the 2006–07 Australian average,reported in the 2008 Productivity Commission in the Reportof Government Services, of 87.2 per cent.Funded kindergarten services with a qualityassurance processper cent 94 94CostTotal output cost $ million 170.2 168.0 Financial year measure.20DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsEarly childhood interventionservicesThis output involves provision of a rangeof services and support for children with adevelopmental delay or disability and theirfamilies.Performance measureUnit ofmeasure2007–08Target2007–08ActualCommentsQuantityTotal number of children receiving a service number 11,650 11,650 Refers to financial year.Number of places and packages funded annually number 9,325 9,325 Refers to financial year.QualityFamilies sampled who are satisfied with the serviceprovidedper cent 85 85TimelinessSupport plans completed within four weeks ofservice commencementper cent 80 80CostTotal output cost $ million 49.5 48.1 Financial year measure.Compulsory yearsCompulsory years consists of two outputs.The early years of schooling output isconcerned with developing the essential skillsnecessary for ongoing progress in educationand providing learning experiences to engageyoung minds. Literacy and numeracy areforemost among the skills learnt during thesefoundation years.The middle years of schooling outputrefers to a fundamental stage of learningwhere students growing from childhood toadolescence consolidate competency inliteracy and numeracy, and their physical,social, emotional and intellectual development.It is also a stage when they attain a greaterbreadth of knowledge and learning, includingextending their capacity for creative andcritical thinking.These outputs include development andmanagement of education programs andcurriculum.Outputs and performance measures21

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsEarly yearsThis output involves provision of educationand other associated services designed toimprove the quality of student learningfor those in Years P–4 in government andnon-government schools.Performance measureUnit ofmeasure2007–08Target2007–08ActualCommentsQuantityAverage P–2 class size number 21 20.7 Schools have continued to reduce class sizes.Average Years 3–6 class size number 24.8 23.4 Schools have continued to reduce class sizes.Teacher–student ratio: primary ratio 1:16.3 1:15.7New-arrival students receiving intensive ortargeted support: primaryEligible students in regular schoolsreceiving ESL support: primaryPercentage of schools with an early yearsnumeracy coordinatorKoorie Home School Liaison Officersemployednumber 1,150 3,681 There have been significant increases in the number of new arrivalsthrough the settlement program and temporary visa holders thatcould not be predicted.per cent 91 91per cent 100 100number 6 8Koorie Educators employed number 15 16Number of assistant principals, aspiringleaders and leadership teams participatingin leadership development programsnumber 380 800 The capacity to offer a broad suite of leadership programs hasresulted in a significantly greater number of participants thananticipated. However, this number may vary in future years.Schools funded for primary welfare officers number 450 573 The actual takes into account funding provided by the PrimaryWelfare Officers output initiative commencing in 2007–08.Refers to financial year.Statewide computer to student ratio: primary ratio 1:5 1:3.37 Financial year measure.Year 1 cohort accessing one-to-one literacy per cent 20 20intervention programsInvestment in non-government schools (P–4) $ million 115.7 116.5 Financial year measure.Number of principals participating innumber 310 313statewide, centrally funded leadershipdevelopment programsQualityStudent attainment at text level 1 at endof Prep in reading (metropolitan andnon-metropolitan students)Students in non-metropolitan regionsachieving at text level 1 at end of Prepin readingStudent attainment at text level 5 at endof Year 1 reading (metropolitan andnon-metropolitan students)Parent satisfaction with primary schoolingon a 100-point scalePercentage of Year 3 Indigenous studentsreaching national benchmarks in readingPercentage of Year 3 students reachingnational benchmarks in readingPercentage of Year 3 Indigenous studentsreaching national benchmarks in numeracyPercentage of Year 3 students reachingnational benchmarks in numeracyPrimary schools identified as performing ator above expected levelsper cent 96.5 96.3 The slightly lower than expected actual may be attributed to thenatural variability in each cohort’s performance from year to year.Targets and actuals for 2005–06 and onwards refer to studentsdeemed as capable of reading previously unseen text with90 per cent accuracy at text level 1.per cent 96.3 95.3 The slightly lower than expected actual may be attributed to thenatural variability in each cohort’s performance from year to year.Students deemed as capable of reading previously unseen textwith 90 per cent accuracy at text level 1.per cent 99.5 99.2 The slightly lower than expected result may be attributed to thenatural variability in each cohort’s performance from year to year.Targets and actuals for 2005–06 and onwards refer to studentsdeemed as capable of reading previously unseen text with90 per cent accuracy at text level 5.100-point 80 81scaleper cent 74 n/a Final 2007 national benchmark results were not released at the timeof submission to DTF.per cent 92 n/a Final 2007 national benchmark results were not released at the timeof submission to DTF.per cent 82 n/a Final 2007 national benchmark results were not released at the timeof submission to DTF.per cent 95 n/a Final 2007 national benchmark results were not released at the timeof submission to DTF.per cent 92 90 Data sets used to calculate this measure have changed. Thesechanges cover the replacement of discontinued Curriculum andStandards Framework data with VELS data, and the replacementof discontinued headcount data with full-time equivalent studentabsence data. Due to the changes in the data sets, results are notcomparable to previous years.22DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsCostTotal output cost $ million 2,192.2 2,308.5 Financial year measure. Variance is due to both increased employeeentitlements following ratification of the new Teachers’ EnterpriseBargaining Agreement which took effect as of May, as well asincreased schools’ expenditure on supplies and services, andmaintenance.Middle yearsThis output involves provision of educationand other associated services designed toimprove the quality of student learning forthose in Years 5–9 in government andnon-government schools.Performance measureUnit ofmeasure2007–08Target2007–08ActualCommentsQuantityAverage rate of student attendance at Year 5 per cent 94 93 The attendance rate covers all absences, including thosedue to illness and family holidays.Average rate of student attendance at Year 6 per cent 93 93Years 7–10 English class sizes less than 26studentsper cent 87 86.8Average rate of student attendance in Years 7–10 per cent 91 91New-arrival students receiving intensive or targetedsupport: secondaryEligible students in regular schools receiving ESLsupport: secondarynumber 882 1,870 There have been significant increases in the number of newarrivals through the settlement program and temporary visaholders that could not be predicted.per cent 89 89Teacher–student ratio: secondary ratio 1:12.1 1:11.8Statewide computer to student ratio: secondary ratio 1:5 1:3.51 Financial year measure.Investment in non-government schools (Years 5–9) $ million 177.1 178.4 Financial year measure.QualityPercentage of Year 5 Indigenous students reachingnational benchmarks in readingPercentage of Year 5 students reaching nationalbenchmarks in readingPercentage of Year 5 Indigenous students reachingnational benchmarks in numeracyPercentage of Year 5 students reaching nationalbenchmarks in numeracyParent satisfaction with secondary schooling on a100-point scaleSecondary schools identified as performing at orabove expected levelsYears 5–6 students’ opinion of their connectednesswith schoolYears 7–9 students’ opinion of their connectednesswith schoolper cent 75 n/a Final 2007 national benchmark results were not released atthe time of submission to DTF.per cent 92 n/a Final 2007 national benchmark results were not released atthe time of submission to DTF.per cent 85 n/a Final 2007 national benchmark results were not released atthe time of submission to DTF.per cent 95 n/a Final 2007 national benchmark results were not released atthe time of submission to DTF.100-pointscale72 72per cent 90 90 Data sets used to calculate this measure have changed.These changes cover the replacement of discontinuedCurriculum and Standards Framework data with VELS data,the replacement of discontinued headcount data with fulltimeequivalent student absence data and the introduction ofYear 9 AIM data for every school. Due to the changes in thedata sets, results are not comparable to previous years.number(1–5)number(1–5)3.8 4.2 Successful implementation of key initiatives has producedresults.3 3.5 Successful implementation of key initiatives has producedresults.CostTotal output cost $ million 2,161.1 2,295.7 Financial year measure. Variance is due to both increasedemployee entitlements following ratification of the newTeachers’ Enterprise Bargaining Agreement, which tookeffect as of May, as well as increased schools’ expenditureon supplies and services, and maintenance.Outputs and performance measures23

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsLater years and youth transitionsThe later years and youth transitions outputinvolves provision of education and otherassociated services designed to improve thequality of student learning for those in Years10–12 in government and non-governmentschools.The priority during the later years of schoolingis to provide young people with effectiveand varied pathways and support to securetheir first formal qualification and to makea successful transition to further study,employment or a combination of both. Itincludes the provision of integrated support forsuccessful transition across sectors throughorganisational networks and linkages, andthrough transition support such as pathwayplans and monitoring of destination data.This output also covers the provision of crosssectoralservices to improve the transition ofyoung people to further education, trainingand employment.Performance measureUnit ofmeasure2007–08Target2007–08ActualCommentsQuantityEnrolments in VET in Schools certificate programs number 45,000 55,249 Includes government and non-government schools. VETin Schools covers VCE and VCAL students undertakingVET, as well as school-based apprenticeships.Number of providers offering VCAL number 400 418 Includes government and non-government schools.Number of student enrolments in VCAL number 12,000 14,093 Includes government and non-government schools.VCAL numbers have grown as a result of successfulimplementation of initiatives.Number of students participating in VET in SchoolsprogramsProportion of VCAL providers to total seniorsecondary school certificate providersnumber 31,000 40,764 Includes government and non-government schools. VETin Schools covers VCE and VCAL students undertakingVET, as well as school-based apprenticeships.per cent 60 66.5 Includes government and non-government schools.Students satisfactorily completing VCAL number 6,500 6,975 Includes government and non-government schools.School-based apprentices/trainees in training number 4,000 6,248VET in Schools students completing a qualification number 12,800 14,450 Includes government and non-government schools. VETin Schools covers VCE and VCAL students undertakingVET, as well as school-based apprenticeships.Investment in non-government schools (10–12) $ million 108.8 109.6 Financial year measure.QualityAverage rate of student attendance in Years 11and 12Enrolments in VET in Schools units as a proportionof total VCE unit enrolmentsper cent 91 93per cent 7.5 8.4 Includes government and non-government schools. VETin Schools covers VCE and VCAL students undertakingVET, as well as school-based apprenticeships.Median VCE study score number 29 29 Government schools onlyStatewide rate of transition from Year 10 to Year 11 per cent 97 97.1 February Census – government sector only.Students satisfactorily completing VCAL per cent 50 69.4 Includes government and non-government schools. Asschools become more familiar with the three VCAL levels,they enrol students in levels more appropriate for individualstudents. This has contributed to the increase in completions.VCAL students progressing to further education,training or workVET in Schools students progressing to furthereducation, training or workper cent 80 89 The higher than expected actual reflects increasedtransitions to work due to the prevailing buoyant youth labourmarket. Includes government and non-government schools.per cent 90 95 The higher than expected actual reflects increasedtransitions to work due to the prevailing buoyant youthlabour market. Includes government and non-governmentschools. VET in Schools covers VCE and VCAL studentsundertaking VET, as well as school-based apprenticeships.24DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsPerformance measureUnit ofmeasure2007–08Target2007–08ActualCommentsYears 10–12 apparent retention rate (August census) per cent 78 76.2 The 2007 actual is an improvement over the 2006 actual.The target does not take into account the impact of theprovision of broader non-school pathways into educationand training nor the effect of a buoyant youth labour market.In addition, as students are able to undertake and completea VCAL qualification prior to Year 12, a lower result for thismeasure could also be due to students who have completedVCAL prior to Year 12.Years 7–12 apparent retention rate (August census) per cent 75 73.9 The 2007 actual is an improvement over the 2006 actual.The target does not take into account the impact of theprovision of broader non-school pathways into educationand training nor the effect of a buoyant youth labour market.In addition, as students are able to undertake and completea VCAL qualification prior to Year 12, a lower result for thismeasure could also be due to students who have completedVCAL prior to Year 12.Percentage of Years 10–12 school studentsprovided with detailed (mail and phone) follow-up inthe year after exitper cent 70 70 Includes government and non-government schools.Proportion of students leaving government schoolsafter Year 9 but before completing Year 12 whowere tracked by a school six months after exitingper cent 60 78.6 The high actual reflects the successful implementation of theManaged Individual Pathways program across schools.CostTotal output cost $ million 1,423.5 1,475.3 Financial year measure. Variance is due to both increasedemployee entitlements following ratification of the newTeachers’ Enterprise Bargaining Agreement, which tookeffect as of May, as well as increased schools’ expenditureon supplies and services, and maintenance.Services to studentsServices to students consists of one outputwhich covers student welfare and support,services to students with disabilities, educationmaintenance allowance, school start-uppayments and student transport.It involves provision of:• education services relating to studentwelfare, including drug education andmental health issues• student support services in the areaof student wellbeing, including speechpathology, visiting teacher services forhearing, visually, health and physicallyimpaired students, curriculum servicesand alternative programs• education services for students withdisabilities in regular and specialist schools• the Education Maintenance Allowance toeligible parents of school students upto the age of 16 years in government andnon-government schools• the school start-up payment to students inPrep and Year 7• student conveyance allowances andthe transport of government andnon-government school students, includingthose attending specialist schools• school-focused youth services.Outputs and performance measures25

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsPerformance measureUnit ofmeasure2007–08Target2007–08ActualCommentsQuantityStudents funded under the Disabilities Program inGovernment Schools as a proportion of the totalstudent populationper cent 3 3Regular schools with students with disabilities per cent 88 88School students (government) supported byconveyance allowanceSchool students (non-government) supported byconveyance allowanceEligible special school students provided withappropriate travelnumber 12,980 12,179 Refers to financial year. Slightly fewer than expectedgovernment school students were eligible for and supportedby the conveyance allowance.number 32,400 33,293 Refers to financial year. Slightly more than expected nongovernmentschool students were eligible for and supportedby the conveyance allowancenumber 6,850 6,694 Refers to financial year. Slightly fewer than expected specialschool students were eligible for and supported by theconveyance allowance.Students receiving school start-up payment number 130,000 129,549 The target was set last year based on an estimate ofpreliminary enrolments for the following year. Refers tofinancial year.Provision of school start-up payment $ million 40.2 38.1 Financial year measure.Eligible school students applying for and receivingthe Education Maintenance Allowanceper cent 100 100 Refers to financial year.Investment in student welfare and support $ million 109.8 113.5 Financial year measure.Investment in services to students with disabilities $ million 419.2 428 Financial year measure.Provision of Education Maintenance Allowance $ million 59.2 57.5 Financial year measure.Investment in student transport $ million 84.6 80.7 Financial year measure.QualityPercentage of students who participated in analternative program who, on completion of theprogram, are engaged in education, training oremploymentper cent n/a n/a A target was not set and the result was not available as theprogram was being reviewed and revised.School satisfaction with student support services per cent 82 88.2 Schools expressed a high level of satisfaction with studentsupport services.Parent satisfaction with special education on a100-point scale100-pointscale85 85Student Drug Education Learning Outcomes Index number 77 n/a This measure was introduced in 2005 to assess theinitial implementation of the Drug Education Evaluationand Monitoring project. The ongoing project has beensuccessfully implemented and this measure is no longerrequired or assessed.TimelinessStudent transport payments made according topublished scheduleper cent 100 100 Refers to financial year.CostTotal output cost $ million 717.2 721.9 Financial year measure.26DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsAdolescent health services (schools)Adolescent health services (schools) consistsof one output and involves provision of schoolnursing services for secondary school-agedchildren.Performance measureUnit ofmeasure2007–08Target2007–08ActualCommentsQuantityDesignated schools receiving secondary schoolnursing servicesnumber 199 199QualitySecondary school annual action plans completed per cent 100 100CostTotal output cost $ million 9.2 9.5 Financial year measure.Policy and regulationThe Policy and Regulation output involvesprovision of policy, administrative supportand strategic advice to the Ministers inrelation to their parliamentary and legislativeresponsibilities.The output includes provision of informationservices about education to the community,including dissemination of information throughpublic promotions, telephone services,publications and advertising services. It alsocovers provision of administrative supportservices for the statutory authorities in theeducation portfolio, including regulatory andadvisory bodies, and international education.It covers:• regulatory activities such as schoolregistration• services for international education,including recruitment, assessment, studentplacement, marketing, organisation ofstudy tours, and international teacher andprincipal exchange programs.Outputs and performance measures27

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsPerformance measureUnit ofmeasure2007–08Target2007–08ActualCommentsQuantityParticipants benefiting from initiatives to increasethe supply of trained/qualified teachersNumber of briefings provided following requestsfrom the MinistersOverseas students recruited to study in Victoriangovernment schools in the yearnumber 500 666 Refers to financial year.number 700 826 Refers to financial year. The number of requested briefingsis higher than expected due to machinery-of-governmentchanges.number 1,000 1,699 Over-performance may be attributed to higher than predictedlevels of demand and more effective marketing throughselected off-shore agents.QualityReader satisfaction with news publications per cent 90 n/a The survey was not conducted as this measure is no longerappropriate and has been deleted for 2008–09. Stakeholdersno longer rely on hard-copy news publications as the primarysource of information about the Department and its activities.In particular, the Department’s website plays an increasinglyimportant role as an information source. Financial yearmeasure.Recommendations of non-government schoolregistration reviews approved by RegisteredSchools BoardTimelinessper cent 99 n/a The result is not available as the Registered Schools Boardhas ceased to exist and this function has been transferredto an independent statutory authority (Victorian Registrationand Qualifications Authority).Percentage of responses to items of Ministerialcorrespondence that are provided within 14 daysper cent 95 92 Refers to financial year.CostTotal output cost $ million 38.1 38.4 Financial year measure.28DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsEarly childhood servicesThe early years are the most important forlearning and development. Quality programsassist families to provide children with thebest start in life and to significantly improvea child’s education, employment and socialoutcomes.The August 2007 machinery-of-governmentchanges meant that early childhood programsthat support the health, development andlearning of Victoria’s young children weretransferred to the new Department. Theseinclude kindergarten and child-care, regulationof children’s services, capital grants for newkindergartens and children’s centres, thematernal and child health service, primaryschool nursing, parenting services, earlychildhood intervention services, inclusionsupports, Best Start local partnerships andlocal planning.Since that time, the Department hastransferred 600 regional staff from DHS,ensured business continuity for servicesprovided to children and families, andmaintained effective partnerships with localgovernments and other key service providers.A new regional reporting framework has beendeveloped and 1341 DHS funding and serviceagreements transferred to the Department.The Department’s efforts in early childhoodservices have focused on continuedimplementation of Victoria’s plan to improveoutcomes in early childhood by:• strengthening the health, development andlearning of 0–5-year-olds• enhancing the provision of early childhoodeducation and care services, including astronger integration between schools andearly childhood services• improving the early years workforce.Strengthening the health,development and learningof 0–5-year-oldsImproving the Maternal andChild Health ServiceThe Maternal and Child Health Service providesa comprehensive and focused approach tothe promotion, prevention, early detectionand intervention for physical, emotional andsocial factors affecting young children andtheir families. It comprises a universallyavailable service, which is jointly funded by theDepartment and local government. It offers tenkey age-and-stage consultations, and a flexiblecomponent that includes first-time parentgroups. In addition, the Department funds the24-hour Maternal and Child Health InformationLine and an enhanced service that targetsmore vulnerable and high-needs families andincorporates a home-visiting service.Highlights• The new Key Ages and Stages ServiceActivity Framework to reflect currentevidence and best practice was piloted infour local government areas.• The Maternal and Child Health InformationLine, which provides a 24-hour informationservice to families with children 0–5 yearsof age, was expanded and approximately75,000 calls were answered, an increaseof over 8100 on the previous year.Strengthening Early ChildhoodIntervention ServicesEarly Childhood Intervention Services (ECIS)provide support for children who have adisability or developmental delay and theirEarly childhood services29

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsfamilies from birth to school entry. Servicesinclude information and support, planning andservice coordination, individual and grouptherapy, and education.ECIS are provided by approximately 60agencies and nine Department-managedSpecialist Children’s Services teams.Highlights• An additional 150 ECIS places and 150ECIS packages were implemented toaddress areas of highest need, as well aswaiting lists.• As part of the autism support strategy,ACTNOW, Regional Autism CoordinationTeams have been developed to coordinateregional responses for children from birthto 6 years with autism across all regionsin Victoria. Training and secondaryconsultation were provided to over 8000professionals and families.• Hearing impairment initiatives weredeveloped and included an information kit,When a Baby’s Hearing Loss is Diagnosed:Fact Sheets for Families. A program wasalso developed to link parents of childrennewly diagnosed with a hearing loss, toother families for mutual support. Additionalresources were made available for earlychildhood intervention services to supportthese families.Early childhood interventionreformThe Early Childhood Intervention Reformproject aims to ensure that interventionservices for children with disabilities ordevelopmental delay are targeted anddelivered effectively, consistently andequitably. It also aims to improve integrationof services in early childhood and into school.The project commenced in 2008 and is duefor completion in late 2008.Highlights• Key principles of the Early ChildhoodIntervention Reform project were developed.• A Project Advisory Group, comprising keystakeholders, was established and initialdirections were developed.Local planning, partnershipsand infrastructureThe Department recognises local governmentas the lead planner for early childhoodservices. The key mechanism is throughformal Municipal Early Years Plans. TheDepartment works in partnership with theMunicipal Association of Victoria, the legislatedbody for local government in the state.The following data shows the percentage oflocal governments that are involved in keyservices:• maternal and child health (100 per cent)• 4-year-old kindergarten (96 per cent)• children’s services for 3-year-olds(66 per cent)• family day-care (85 per cent)• occasional care (75 per cent)• long day-care (72 per cent)• neighbourhood house early years programs(65 per cent)• Early Childhood Intervention Services(37 per cent).Best StartBest Start is an early years prevention andearly intervention initiative that aims toimprove the health, development, learningand wellbeing of all Victorian children. It doesso by supporting communities, parents andservice providers to improve universal earlyyears services to respond to local needs.Improvements in services are expected toresult in:• better access to child and family support,health services and early education30DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations• improvements in parents’ capacity,confidence and enjoyment of family life• communities that are more child- andfamily-friendly.Children’s Capital programThe Department has supported local councilsand other community-based providers of earlychildhood services to redevelop, refurbishand upgrade existing infrastructure. A total of$16.95 million was allocated in 2007–08.Highlights• All 79 local councils have Municipal EarlyYears Plans in place and many are currentlybeing reviewed.• The Children’s Capital program delivered:– five municipal-wide infrastructure grantsto support local government to redevelopearly years infrastructure– nine children’s centre grants towards theestablishment of new children’s centres– one hundred and thirty-two renovationand refurbishment grants for existingcommunity-based kindergartens andchild-care centres– eight hundred and twelve minor capitalgrants for kindergartens, child-carecentres and outside-school-hours care services to upgrade facilitiesor to purchase equipment to create safer,more pleasant environments in whichchildren can play, learn and develop.• Two new Best Start sites commenced inthe cities of Greater Dandenong andBrimbank.Young Readers programThe Government committed $2.1 millionin the 2007–08 State Budget for theimplementation of the Young Readersprogram. The program is a partnershipbetween the Department, the State Libraryof Victoria and local government.The Young Readers program provides:• a free picture book for all Victorian childrenat their 2-year-old maternal and childhealth visit• a free Rhyme Time booklet and DVD, bookbags and information on local libraries forfamilies at the four-month maternal andchild health visit• professional development to early childhoodprofessionals, librarians and maternal andchild health nurses.Providing additional help forIndigenous childrenThe Department recognises that earlychildhood provides a unique opportunity toaddress the disadvantage experienced bymany Indigenous children and their families.Initiatives include the In-Home Supportprogram in five locations, the Koorie EarlyChildhood Education program, enhancedhome learning and Aboriginal Best Start.The In-Home Support program aims toimprove parenting capacity of Indigenousmothers and families and achieve measurableimprovements in health, development, learningand wellbeing of Indigenous children (with afocus on children from birth to three years).The 2007–08 State Budget allocated$2.7 million over four years to provide accessof up to ten hours per week free kindergartento Indigenous 3-year-olds who hold aconcession card. The objective of this initiativeis to improve the developmental outcomesfor Indigenous children through participationin kindergarten.The Koorie Early Childhood Educationprogram supports Koorie children andtheir families to access and participate inkindergarten. The program also providesadvice to kindergartens across the stateabout providing culturally relevantexperiences for Koorie children.Early childhood services31

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsThe Home-Based Learning Enrichmentprogram is a complementary programfor children aged 3–6 years that will beimplemented as an extension of the In-HomeSupport program in three sites.Highlights• At June 2008, 92 eligible Indigenous3-year-old children were linked to 46kindergarten services.• The Department increased regional KoorieEarly Childhood Education program stafffrom 7.8 FTE to 11 FTE by increasingpart-time staff to full-time.• As part of the In-Home Support program,the Victorian Aboriginal Health Servicereceived funding to provide an enhancedMaternal and Child Health service to aminimum of 200 Indigenous childrenper year.Providing extra support forchildren and their familiesThe Parenting Services program aimsto promote the independence of healthdevelopment of families with children frombirth to 18 years. It does so through theprovision of parenting support, information,advice, referral and resources to parents, andtraining and consultancy to professionals.The program supports the statewideParenting Research Centre and the nineRegional Parenting Services, as well asone-off projects.The Primary School Nursing program offersa health assessment to children in their firstyear of school. It is designed for Victorianchildren attending primary schools andEnglish language centre schools. The healthassessment tool is the School EntrantHealth Questionnaire.Highlights• Staff at Parentline, a confidential counsellingservice for families with children from birthto 18 years, answered over 11,000 callsregarding complex parenting issues.• A new, improved School Entrant HealthQuestionnaire was developed.Enhancing the provision ofearly childhood educationand care servicesCommonwealth–State relationsUnder the COAG Reform Agenda, for the firsttime, Ministers and their governments haveagreed about the strategic importance of EarlyChildhood Development. This is reflected inthe COAG-endorsed aspiration:That children are born healthy and haveaccess to the support, care and educationthroughout early childhood that equips themfor life and learning, delivered in a way thatactively engages parents and meets theworkforce participation needs of parents.Development of implementation plans relatingto Commonwealth commitments include:• universal access to early childhoodeducation for all children in the year beforeformal schooling• quality standards and a rating system forchild-care and pre-school• development of a National Early YearsLearning Framework• early childhood development workforcestrategies including the rollout of 1550 newuniversity places, HECS remission for earlychildhood teachers working in areas ofhigh need, and removal of TAFE fees forchild-care trainees32DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations• national early childhood developmentperformance information strategy, includingrollout of the Australian Early ChildhoodDevelopment Index.Highlights• Seven priority areas, including theProductivity Agenda, were established.• Funding reform towards Specific PurposePayments and National Partnershipswas developed.• A statement of objectives for early childhoodeducation and care was drafted.Victorian Early Years Learningand Development FrameworkIn January 2008, the Victorian Governmentannounced plans to develop a 0–8 EarlyYears Learning and Development Frameworkto enhance the provision of early childhoodeducation and care services. This work isbeing progressed jointly with the VCAA.The framework will link with the VictorianEssential Learning Standards (VELS) forschools and provide opportunities to supportevery child’s individual learning needs andtransition to school.This framework will also provide a universallanguage and understanding of the learningand developmental pathways of children,support and guide parents and professionalswho are involved with children aged 0–8 andprovide consistent, practical and evidencebasedapproaches to supporting children’sdevelopment.Highlights• Analysis of curriculum and learningframeworks for children from birth to 8years, including a review of 17 national andinternational jurisdictions was completed.• A symposium on the development ofthe national Early Years Learning anDevelopment Framework was held.• A steering committee and advisory groupsto guide the development of the frameworkwere established.Transition planningThe Department has commenced theintroduction of transition plans to supportchildren moving from kindergarten or childcaresettings to primary school. These planswill be informed by the 0–8 Early YearsLearning and Development Framework.An individualised plan enables a smoothtransition from early childhood education andcare settings to school by ensuring that thereis a shared understanding of information suchas a child’s interests, learning style, abilitiesand support requirements.Implementing amendments to theChildren’s Services Act 1996The Children’s Services Act 1996 provides forthe licensing and regulation of kindergartenand child-care services to protect the healthand safety of children and ensure that theirdevelopmental needs are met.Highlight• The Act has been amended to introducesome immediate provisions, provide forthe licensing and regulation of outsideschool-hourscare and family day-caresectors, and introduce other reforms fromMay 2009.Licensing and regulatingchildren’s servicesIn Victoria, there are over 2800 licensedchildren’s services with a licence capacity ofover 124,000 places providing kindergarten,long day-care and occasional care. Theprimary objective of the legislation is thatchildren are safe and their developmentalneeds are met when being cared for andeducated in a licensed children’s service.Early childhood services33

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsComplementary strategies are implementedto encourage, promote, monitor and complywith the legislation.Highlights• Over 4000 visits to children’s services werecompleted.• A response was made to more than 1700notifications of incidents and complaintsabout children’s services.• Three prosecutions of services, wherechildren were exposed to serious riskand harm when they left a serviceunaccompanied, were completed.• The Children’s Services and EducationLegislation Amendment (AnaphylaxisManagement) Act 2008, requiring allchildren’s services to have an anaphylaxismanagement policy and to enable themaking of regulations in relation toanaphylaxis, received royal assent on4 March 2008.Strengthening kindergartenservicesThe Victorian Government provides fundingfor all children to access a kindergartenprogram in the year prior to formal school entry(two years before Year 1). Funded kindergartenprograms are provided by a range oforganisations. In 2007, kindergarten programswere provided at 1608 kindergarten locations.Highlights• Fifty-seven thousand, four hundred andninety-seven children attended kindergartenin 2007. This means that 94 per centof Victoria’s children benefited from akindergarten program prior to school entry.• Kindergarten programs in Victoria weredelivered through 736 community-basedkindergartens and 387 long day-carecentres (a mix of private and communitybased) as well as 85 private schools and19 government schools.• The kindergarten fee subsidy was increasedto $730 on 1 July 2007, making ten hours ofkindergarten effectively free for children whohold concession cards.• Rollout of the kindergarten clustermanagement continued, with 44 of allcommunity-based locations now participatingin a cluster.• $10 million over four years, commencingin the 2007–08 State Budget has beenallocated to improve access to kindergartenfor children in long day-care settings and toassist kindergartens to offer extended-hourscare.• A total of 5400 children with a broader rangeof additional needs across Victoria weresupported by Pre-school Field Officers.These officers were employed by 19local councils and 13 community serviceorganisations.Improving the early yearsworkforceThe overall goal of the workforce initiativesis to increase the quality of early childhoodprograms by increasing the supply ofqualified staff and to improve the skills andqualifications of early childhood education andcare workers.Two schemes – the Early Childhood TeachingScholarship Scheme and the Incentives forEarly Childhood Teachers in Long Day-CareScheme – were introduced to encouragediploma-qualified staff to undertake a degreein early childhood education and to encouragerecent early childhood teaching graduates totake up employment in long day-care settings.Recipients must agree to work in a long daycarecentre as an early childhood teacher fortwo years.34DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsHighlights• Thirty-three scholarships were grantedas part of the Early Childhood TeachingScholarship Scheme.• Six incentives packages were awarded aspart of the Early Childhood Teachers in LongDay-Care Scheme.• Thirteen scholarships for Indigenous peopleto upgrade qualifications from a diplomain children’s services to a degree in earlychildhood teaching were awarded.• Thirteen Rural Employment Grants tooffer financial incentive to early childhoodgraduate teachers to take up a position ina rural kindergarten were provided.• Two hundred and four sessions ofaccredited anaphylaxis training, fundedby the Department, were delivered to over4250 children’s services staff by the AsthmaFoundation of Victoria.• The Centre for Adolescent Health engagedand commenced delivery of a range ofprofessional development training activitiesfor secondary school nurses.• Fifteen scholarships were allocated aspart of the Maternal and Child HealthWorkforce project to support recruitmentand retention of maternal and child healthnurses.Early childhood services35

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsCompulsory yearsEducation in Victoria is compulsory forchildren aged from six to 16 years. Thissection discusses the provision of educationand associated services for these students,improving the quality of learning throughresponding to student needs, recognisingthe importance of building the skills of theeducation workforce, and improving schools.2003 Blueprint forGovernment SchoolsRecognising and responding todiverse student needsStudent learningThe Department continued to developcurriculum advice and resources to supportwhole-school curriculum planning and buildteacher capacity to implement student learninginitiatives. The advice and resources supportschools to implement the VELS progressivelyand to make decisions about appropriatecurriculum, pedagogy, assessment andreporting.Highlights• In 2007, all schools implemented programsconsistent with the following domains of theVELS: English, Mathematics, Health andPhysical Education, Personal Learning,Civics and Citizenship, Humanities(Economics, Geography and History),Communication, and ICT. Schools reportedstudent progress in each of these domains.• In 2008, all schools are required to designcurriculum and assess and report studentprogress against all domains of the VELS.• In 2008, more than 90 per cent of schoolsare using the software provided by theDepartment to produce student reports.This software enables schools to provideparents with A–E reporting against the VELS.• In 2008, 64 participants from 27 governmentschools completed the Principles ofLearning and Teaching professionaldevelopment training program, bringingthe total number of government schools toparticipate in the program over the past fouryears to 877 (approximately 55 per cent ofgovernment schools).• A survey administered in November 2007asked principals to indicate the value toschools of the online student learningresources, with 660 government schoolsresponding to the survey. There was anincrease in responses on the effectivenessof the student learning resources. Therewas also an increase in the proportionof schools operating at Levels 3 and 4on a continuum from Level 1 (lowest) toLevel 4 (highest exemplification) in relationto five elements of the student learningwhole-school self-assessment tool.LiteracyLiteracy is a priority for Victoria. TheDepartment has continued to developevidence-based resources and to providehigh-quality professional learning to ensurethat all students’ literacy learning is supportedand enhanced.Highlights• The Literacy Improvement Team initiativecontinued during 2007 and 2008. Literacyspecialists in identified schools work withclassroom teachers to bring about thechanges in classroom practice necessaryto accelerate the literacy performance ofall students to at least the expected level.The initiative is funding the training andemployment of 45 FTE literacy specialists,36DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsand the training of another 27 specialistsfunded by schools and regions. To date,196 schools have been involved. Theinterim evaluation report shows greater thanexpected improvement in the literacy skillsof students in Years 3–5 involved in theinitiative, as measured by the AchievementImprovement Monitor (AIM) On Demandtest for Reading. Results for Years 6–8 arealso promising but not statistically significantdue to smaller numbers.• Enhancements were made to the onlineEnglish Developmental Continuum P–10and the online Literacy ProfessionalLearning Resource. These include videosthat exemplify student performance atselected levels. They are designed tosupport teachers to make consistent andaccurate judgments of students’ progress.• Three-day Literacy Leader ProfessionalLearning programs, two primary andone secondary, were run in each regionin Terms 3 and 4, 2007, involving 1023participants. In 2008, a second round ofthese programs was offered to an additional294 participants. Overall, the professionallearning program was attended by 1317participants, representing 475 primaryschools and 180 secondary schools acrossthe state. This three-day program assistsschool-based literacy leaders to buildknowledge about literacy learning andthe Online Literacy Professional LearningResource. It also supports participants todevelop professional learning that bestmeets the needs of their own school.• The Premier’s Reading Challenge targetsstudents in Years P–9 in all schools.In 2007, a total of 203,264 studentsparticipated, representing a significantincrease over the previous year whenapproximately 190,000 students participatedin the Challenge.• Literacy and Numeracy Week wascelebrated in all school regions.Mathematics and scienceMathematics and science are critical areas ofstudent learning. A number of projects weredeveloped over 2007–08 to support Victorianteachers to deliver targeted and effectivemathematics and science learning forall students.Highlights• The Fractions and Decimals Online Interview,which complements the Mathematics OnlineInterview, was published in Term 2, 2008.This resource enables teachers to monitorstudent learning in fractions, decimals, ratioand percentage in Years 4–8.• A three-day professional learning program formathematics leaders in secondary schoolswas offered in all regions during Terms 3and 4, 2007 to support implementation ofthe VELS and build pedagogical contentknowledge. Two hundred and eighty-nineparticipants, representing 58 per cent ofsecondary schools, attended the program.• A Science Continuum P–10 was publishedonline in July 2007. The continuum supportsteachers to improve student learningoutcomes in science through the provisionof appropriate evidence-based teachingapproaches and learning activities. Regionalbriefings to familiarise teachers with theresources were held in Term 4, 2007.• From the start of the 2008 school year, 200Teaching and Learning Coaches and 50Ultranet Coaches were deployed in identifiedgovernment schools across the state towork in classrooms on a one-to-one basiswith teachers to increase their capacityto improve student achievement. Thisinitiative focuses on improving outcomes inmathematics and science and supportingschools to prepare for the Ultranet.ICT and e-learning in schoolsICT and e-learning supports teachers tomaximise the use of ICT to improve learningoutcomes for students.Compulsory years37

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsHighlights• The ePotential ICT Capability Resourceis an online tool designed to assist thedevelopment of teachers’ ICT capabilities.It provides teachers with a confidentialsurvey to identify their level of ICT capability.It links directly to a bank of resourcesshowing examples of best classroompractice to support teachers’ professionallearning needs and guide planning fore-learning. Responses from 21,258 teacherswere received.• Digilearn, a portal designed to provideteachers with ready access to 6000innovative digital learning resources, waslaunched in May 2007 and new resourcescontinued to be added to the portal.• Victorian government schools have asite licence for the updated Kahootz 3.0,a three-dimensional animation softwareprogram that provides students withdynamic tools to create and sharedigital content.• The Victorian Education Channel continuedto provide quality online resources for schoolstudents, teachers and principals. The GlobalTeacher project provides a protected spaceand is used by teachers and students toexplore Web 2.0 technologies.• The eLearning/ICT Showcase providedexamples of how ICT can be usedeffectively to support learning and teaching,demonstrating the possibilities for teachers.Eight showcases were live in 2008,highlighting 118 learning objects/casestudies.• A Website Tool Kit was regularly updated.It provided a practical framework for schoolsfor developing and maintaining websitesand clear guidelines for promoting safeInternet use.• Nine schools, one in each school region,formed the Catalyst initiative, supportedby the Microsoft Partners in Learningprogram. These schools are participatingin action-learning research projects toinvestigate ICT and pedagogy. Schoolleaders were supported to plan for ICTintegration across their schools and staffwere supported through an ICT PeerCoaching program.• The Intel Teach professional learningprogram supported teachers to designinquiry-driven, student-centred learningactivities that integrate technology across allareas of the curriculum. Two courses wereoffered through this program, Intel TeachEssentials Online and Intel Teach Thinkingwith Technology, and 133 master trainerswere trained.The UltranetThe Ultranet is a student-centred electroniclearning environment that supports high-qualitylearning and teaching. It connects students,teachers and parents and enables efficientknowledge transfer.The Department released a request for atender in August 2007 and has completed atender evaluation process without being ableto select a successful tender.The Department is committed to the deliveryof a quality Ultranet to schools by the thirdquarter of 2010 and will re-tender for a solutionthat will meet the core functions and benefitsfor learning and teaching as well as aparent portal.ICT infrastructureThe Government continued to invest in ICTinfrastructure in schools. This investmentincluded equipment, connectivity, technicalspecialists, and software systems andlicences to support schools to deliver highqualityeducation to all students in Victoriangovernment schools. The quality and rangeof ICT infrastructure and resources in schoolswas an important factor in the effective use ofICT in the classroom.38DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsHighlights• Schools continued to receive access tohigh-quality hardware, secure remoteaccess, information technology grants topurchase curriculum computers and accessto suitable educational software.• The provision of a reliable high-capacitybroadband network in schools under theVicSmart program encouraged teachers tocontinue to integrate technology into newmethods of teaching.• Teachers and principals were assistedin the use of ICT technology through theprovision of a notebook computer underthe Notebooks for Teachers and Principalsprogram. All centrally paid teachers whohold an edumail email account that is usedon a regular basis are eligible for a laptop.Teachers are also required to participatein 40 hours of e-learning professionaldevelopment.• Computer maintenance and supportwas provided with specialist techniciansworking in every school through theTechnical Support for Schools program.The technicians maintained computers,servers and the notebooks provided toteachers and principals.Early yearsEarly years initiatives support continuousimprovement in student achievement in literacyand numeracy in Years P–4.Highlights• The Government target of an average of21 students in Years P–2 classes was metin February 2003. In February 2008, theaverage P–2 class size was 20.7 students.• Funding was allocated to all primary schoolsto support early years literacy and numeracycoordination.• Funding was provided to all schools withYear 1 enrolments to support literacyintervention for 20 per cent of the cohort.Reading Recovery programs were used by62 per cent of schools.Middle yearsMiddle years initiatives support improvementsin the quality of student learning in Years 5–9.Highlights• In 2008, approximately $77 million in MiddleYears Equity and Secondary Equity fundingwas allocated to identified schools to enablethem to support improved student learningoutcomes, with a focus on literacy andnumeracy.Koorie educationKoorie education initiatives are designed tosupport improved educational outcomes forKoorie students and increase all students’knowledge and understanding of Indigenouscultures and issues.Highlights• The Department undertook acomprehensive review of its approachto education for Koorie students inpartnership with the Victorian AboriginalEducation Association Incorporated. Theoutcomes from the review have informedthe development of the Government’s neweducation strategy for Koorie students:Wannik, Learning Together – Journey toOur Future. Fundamental to this strategy is:– repositioning the education of Kooriestudents within all government schoolsthrough school leadership that createsa culture of high expectations andindividualised learning– systemic reform across governmentschools to deliver the best possibleeducation to meet these expectations,underpinned with explicit accountabilityat all levels of the system– creating an environment that respects,recognises and celebrates culturalidentity through practice and curriculum– professional development opportunitiesfor principals and teachers in culturalawareness, including pre-service andin-service teacher trainingCompulsory years39

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations– supporting individual learning needs ofKoorie students through:• intensive literacy and numeracyprograms for students achieving belowexpected levels• additional support and incentives fortop students to provide encouragementto excel• leadership opportunities for Kooriestudents in secondary schools• better engagement with Koorie parentsand the community through school–community partnerships.• The Department evaluated the trial thatwas underway in one school region ofindividual education plans for Kooriestudents. The outcome of this evaluationproduced the Individual Education PlanGuide and Template for all schools to usefor their Koorie students. A professionaldevelopment package is now beingconstructed for regions and schools.• The Department provided regions withfunding for projects targeted at improvingKoorie students’ literacy and numeracy,attendance and parent engagement. Thefunding was used in many areas, such asthe successful Literacy Improvement Teaminitiative, local attendance strategies, andparental engagement strategies.• A curriculum resource was developed,Making History in Victorian Classrooms, inconsultation with the Victorian AboriginalEducation Association Incorporated.• A number of principals attended the StrongerSmarter Principals Leadership programthrough the Indigenous Education LeadershipInstitute in Queensland. This programchallenges the assumptions of leaders aboutschool practice for Indigenous students, aswell as supporting principals in pursuing theirown reform journey for school transformation.Languages other than EnglishThe following initiatives supported theprovision of languages other than English(LOTE) programs for students in Years P–12.Highlights• Twenty-two languages were taught ingovernment primary and secondary schools,and 44 languages were provided throughthe Victorian School of Languages.• The Languages Online site was enhancedwith the addition of new resources. Theseinclude interactive templates, which allowteachers and students to create their owninteractive languages games, as well asresources to assist teachers to link theirlanguages program to other curriculumareas. The site had an average of 30,000users per week.• Grants were provided to 13 languageteacher associations to increase teachercapacity in the implementation of the VELS,the Principles of Learning and TeachingP–12 and the use of technology in LOTEclassrooms.• Twelve clusters of schools were grantedadditional funding to increase the qualityof LOTE program provision to students.• Regional Project Officers for Languagescontinued to support language teachernetworks to facilitate the sharing ofexpertise and resources.• The LOTE Training program providedfunding to increase the number of fullyqualified LOTE teachers available togovernment schools. In 2008, 47 teacherswere given a LOTE Methodology scholarshipto study how to teach languages. Forty-fourteachers were awarded a languagesscholarship to enable them to gain higherproficiency in their language.• Programs that have continued to improvethe teaching of Chinese in governmentschools include study tours to China forprincipals, teachers and students. In2008, seven Chinese language teachingassistants are operating in governmentschools to work with students in the Chineselanguage classroom.• Funding was provided for approximately33,000 students learning a total of 39languages in after-hours community40DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationslanguages schools. Additional fundingwas provided for the development of anaccredited training program for teachersof community languages.English as a second languageEnglish as a second language (ESL) initiativesfocus on improving support for ESL students,including the increasing numbers settlingin rural and regional settings. In 2007,approximately one-third of new arrivals wereon humanitarian and refugee visas. Thesestudents require high levels of new-arrivaland ongoing support. Partnerships with keygovernment and non-government stakeholderscontinued to be strengthened to coordinatesupport for refugee students and their families.Highlights• A total of 5551 new arrivals receivedintensive and targeted ESL support in2007. This was an increase of 697 studentscompared with 2006.• Intensive ESL programs were providedfor 2191 newly arrived students in Englishlanguage schools, centres and outpostingprograms in mainstream schools. Anadditional 306 students were supported bythe visiting outposting program.• A further 282 students were supportedthrough new arrivals programs in Geelong,Ballarat and Shepparton, and the IsolatedESL Students program in regional Victoria.• At a cost of $2.8 million, eight out of tenpurpose-built relocatable classrooms werelocated in growth areas to allow intensiveEnglish language classes to be held closerto where new arrivals live. The remaining twoclassrooms will be on site in Term 3, 2008.• An evaluation of ESL and New Arrivalsprogram delivery in Victorian governmentschools was conducted to investigateand report on the effectiveness of currentprogram delivery.• Over 60 schools received TransitionInitiatives funding for programs thatprovide support to students with little or noprevious schooling, mostly from refugeebackgrounds. This funding providedadditional English language tuition to assisttheir transition to mainstream schooling.• Funding was allocated to 349 primaryschools, 98 secondary schools and 11primary–secondary schools to support thespecific learning needs of ESL students.Extra contingency funding was providedto schools for increased numbers of ESLstudents enrolling after the annual schoolcensus.• Funding continued to be provided to schoolsfor over 240 FTE multicultural educationaides.• One hundred and thirty aides attendedthe annual multicultural education aideconference.• Updates to CASES21 were made to identifyESL students for the collection of ESLstudent achievement data for benchmarkingpurposes.• One hundred scholarships to the total valueof $522,580 were awarded to teachers togain qualifications in Teaching English toSpeakers of Other Languages in order toincrease the number of fully qualified ESLteachers in government schools.• One hundred mainstream classroomteachers were trained in the ESL teacherdevelopment course: Teaching ESLStudents in Mainstream Classrooms.• An online resource, StrengtheningOutcomes – Refugee Students inGovernment Schools, was released. Thisresource outlines the support available torefugee students in government schools.• A pilot Out of School Hours LearningSupport program commenced in WesternMetropolitan Region at North Melbourne,Footscray, Melton, Wyndham and Werribee.• A total of 9108 on-site and telephoneinterpreting assignments were provided in71 languages, and 325 documents weretranslated into 28 languages for governmentschools.Compulsory years41

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsMulticultural educationMulticultural education initiatives supportlearning in schools that is culturally inclusiveand promote intercultural understanding andsocial cohesion, together with an appreciationof the advantages of Victoria’s contemporarysociety.Highlights• The Ministerial Advisory Council onLanguages, English as a SecondLanguage and Multicultural Educationwas reconstituted. The Council’s workplan for 2008–10 includes developmentof a new multicultural education policyfor government schools, strategies forincreasing the uptake of languages otherthan English and strategies to supportESL students.• There was a 15 per cent increase in schoolentries to the Cultural Diversity Quest.The Quest provides school communitieswith the opportunity to showcase the waymulticultural perspectives can be embeddedacross the curriculum.• $70,000 in grants was provided to 109schools to conduct school and communityevents to mark Cultural Diversity Week,17–23 March 2008.• The Languages and Multicultural EducationResource Centre provided professionaldevelopment, teaching resources andprofessional advice to teachers, teachereducators, community language teachersand pre-service teachers from all sectors.In 2007, the centre was used by over1450 teachers, an increase of 30 per centcompared with 2006. Over 28,000 itemswere borrowed, an increase of 23 per cent.In addition, the centre sent boxes ofresources to 68 primary and secondaryschools in rural areas to assist them withmeeting the English language learningneeds of newly arrived students.• In January 2008, five half-time regionalproject officer positions for multiculturaleducation were established in rural regionsto support the development of culturalliteracy in school communities, particularlythose in areas of new settlement.• Advice for school communities wasprovided in response to the introductionof the Charter of Human Rights andResponsibilities Act 2006.• Professional development to enableeducators to incorporate studies of Asiaacross their curricula included provision of15 scholarships to attend the Asia EducationFoundation Linking Latitudes Conference inIndia in September 2007.• The Keynotes project provided schools withadvice on addressing world conflicts withinthe curriculum. Background information,learning and teaching strategies andresources on the nine most prominentreligions were also provided.• Almost 4000 students in Years 10–12 from42 metropolitan and rural schools attendedCourage to Care exhibitions and workshopsin the past 12 months. The programprovides students with an opportunity toexplore the impact of discrimination oneveryday lives – at home, at school, inthe playground, and in the local and widercommunity.• Over 700 teachers from government andnon-government schools were involvedin three projects: the School Dialogueproject (La Trobe University), EnhancingRelationships in Schools (University ofMelbourne) and Diversity – An EducationAdvantage (Deakin University). All threeprojects focus on enhancing cultural andlinguistically inclusive school practices andcommunity partnerships.Health, sport and physical educationHealth, sport and physical education initiativespromote and support the teaching and learningof health, sport, physical education, sexualityeducation and traffic safety education.42DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsHighlights• Professional learning opportunitiescontinued to be offered to support primaryand secondary teachers to implementeffective health, sport and physicaleducation programs.• A comprehensive new website wasdeveloped to assist all primary andsecondary schools on matters relating tosexuality education.• A new sexuality education resource,Catching on Everywhere, was distributedto all schools to assist with programdevelopment in their school communities.• Traffic safety education materials, producedin collaboration with all key road safetyagencies, were distributed to governmentand non-government schools.Go for Your Life schools programsAs part of the whole-of-government Go forYour Life initiative, several key programswere implemented in schools in 2007.The focus was on the continued promotionof the benefits of physical activity andhealthy eating habits for students and thewider community.Highlights• The second round of Healthy Start inSchools grants for government schools withprimary enrolments was completed. Grantswere received by 183 schools.• The second phase of the Free Fruit Fridayprogram was implemented, providing805 government schools with Years P–2enrolments with grants to purchase fruitand vegetables for their students once aweek. The total budget for this initiative in2007–08 was $1.6 million.• As part of the Kitchen Garden project withStephanie Alexander, Phase 1 projectscontinued their implementation. Phase 2of the project will be implementedin 2009.Selective entry schoolsIn April 2008, the Government announceda $40 million investment to establish twonew selective entry schools in Melbourne’souter growth corridors from 2010. The twonew Years 9–12 schools will be situatedin Berwick and the City of Wyndham,providing greater opportunities and choicefor students in regional and outer suburbanareas. They will complement the existingselective entry schools – MelbourneHigh School and Mac.Robertson Girls’ HighSchool – and work in partnership with theseschools to promote excellence in teachingand learning across the governmentschool system.Both schools will be co-educationaland will open with an initial enrolmentof up to 200 Year 9 students, includinghighly able students from disadvantagedbackgrounds. Each of the new selectiveentry schools will have a maximum studentpopulation of 800 when fully operational.The new Berwick school will be situated onthe Monash University campus, while theCity of Wyndham school will forge links withthe University of Melbourne and VictoriaUniversity. These partnerships will allowstaff and students to work on joint researchprojects, attend special classes and lectures,undertake enhancement studies, sharefacilities and develop joint projects.A centralised selection process, includinga common entry exam for Year 8 students,will be established for all four selective entryschools. The examination and selectionprocess will be overseen by an independentauthority.The proportion of students that can attend theselective entry schools from any individualgovernment or non-government school willcontinue to be capped. However, in order toprovide further opportunities for highly ablestudents, the cap will increase from 3 per centto 5 per cent of the Year 8 cohort fromCompulsory years43

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsany school. Under the policy, 10 per cent ofplaces at selective entry schools will be basedon equity grounds.Highlights• High-level governance bodies, including asteering committee, project board, selectiveentry school network and regional workinggroups, were established.• An experienced principal was appointedto project manage the establishment ofthe two schools and two principals wereappointed to oversee the regional workinggroups.Gifted and high-potential studentsThe Department meets the educational andsocial development needs of gifted and highpotentialstudents across all levels of schooling.Highlights• In 2008, there are 36 Select EntryAccelerated Learning program schoolsoperating across Victoria. They are located toimprove equity of access for gifted students.• Select Entry Accelerated Learningschool-based coordinators and regionalcoordinators continued to meet quarterly fornetworking and professional learning.Strategic partnershipsDuring the current triennium (2006–08), theStrategic Partnerships program continuesto fund 93 organisations and agencies with$5.2 million annually to deliver 145 studentand teacher professional learning programsacross the state. Organisations range acrosscommunity, cultural and scientific organisations,professional teaching associations and largeinstitutional partners such as the NationalGallery of Victoria, Museums Victoria andZoos Victoria. Programs typically support theimplementation of the VELS. They also supportschools to work towards closer links withtheir communities by connecting learning andteaching with practice beyond the classroom.Building the skills of the educationworkforce to enhance theteaching–learning relationshipBuilding leadership capacityThe Government has allocated significantfunding to deliver the current suite of 19leadership professional learning programs forgovernment schools. Programs are targeted tomeet the development needs of principals andteachers at different stages of their careersand in different contexts.Highlights• In 2008, 159 high-potential leaders areundertaking a Masters in School Leadershipcourse, which aims to improve successionplanning and promote mobility and learningacross the government school system.An external evaluation shows that almost66 per cent of participants in the first cohortwho commenced the course in 2004 haveachieved a promotion to the principal class.• One hundred and seventy-four aspiringleaders participated in Preparing forLeadership and Leading for StudentLearning programs. These programsfocus on building participants’ capacityas curriculum leaders and change agentswithin their schools.• One hundred and forty-four first-timeprincipals received mentoring support fromhighly skilled principals to assist them tobecome more effective leaders.• One hundred experienced principals wereprovided with 15 hours of one-to-onecoaching to enable them to strengthen theirleadership capabilities through reflectivelearning.• Sixty principals joined the DevelopmentProgram for High Performing Principals.Participants are encouraged to look beyondtheir own school and to view themselvesas leaders who value the collectiveresponsibility for improving all schoolswithin the system.44DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations• One hundred and ninety teachersparticipated in the Building the Capacity ofProfessional Learning Leaders program.• Two hundred and eighty-six teachers andleaders participated in programs for schoolleadership teams focused on building theircapacity to reform curriculum practices.• Three hundred and twenty assistantprincipals and leading teachersparticipated in new programs focused onthe development of specific leadershipcapabilities to drive school improvement.The programs involved workshops,coaching, shadowing and mentoring.• Thirty aspiring leaders, assistant principalsand principals received scholarships toparticipate in postgraduate courses toincrease their capacity as school leadersand strengthen their expertise in a particularlearning area.• Sixteen networks in the 2008 program aresupporting 172 aspirants in the Leaders inthe Making program, designed to strengthenleadership capacity within school networksand support the development of successionplanning models.• Eighteen networks in the 2007 programcontinued to provide network-basedleadership development activities for theiraspirant leaders in 2008.• The Guidelines for Principal ClassPerformance and Development 2008 weredistributed.Creating and supporting aperformance and development cultureThe accreditation scheme for Performanceand Development Culture in Schools is in itsfourth and final year. The accreditation processis based on a Self-Assessment Framework,which is verified by an external body.Highlights• Nine hundred and forty-eight governmentschools have been accredited. All remainingschools not yet accredited will be verifiedduring 2008.• Accredited schools partnered non-accreditedschools on a needs basis to work towardsaccreditation through involvement inactivities such as mentoring and schoolvisits.• Ten accredited reference schools supportedthe statewide implementation of thePerformance and Development Cultureinitiative. Nominated by regions, theyrepresent the range of schools across thestate and provide presentations for groupsof schools seeking accreditation.• Over 100 open sessions were hosted byaccredited schools to share their expertiseand experiences. These sessions wereattended by 500 schools, with over 1500participants.Teacher professional developmentPrograms were funded to provide teacherswith opportunities to further develop andconsolidate their practice. Underpinningthe programs is the belief that highqualityprofessional learning is one of thecornerstones of an effective school and iscentral to improving student learning.Major professional development initiativesincluded Induction and Mentoring forBeginning Teachers and Teacher ProfessionalLeave. Refresher courses for teachersreturning to government schools and theOverseas Trained Teachers program werealso delivered as part of the Teacher Supplyand Demand strategy. The Secondary TeacherAssistants initiative commenced in 2008 aspart of the Government’s Better Schools,Better Performance policy.Highlights• Over 2627 teachers participated in thetwo-day statewide Teacher Mentor Supportprogram in 2007.• Day 1 of the 2008 program was completed,with 1780 teachers participating.Participants in the program were providedwith a comprehensive learning guideexploring the practice of mentoring.Compulsory years45

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations• To further develop their skills and expertise,between four and ten weeks of TeacherProfessional Leave was undertaken by over548 teachers in 2008.• To maximise the benefits of TeacherProfessional Leave, 180 recipientsparticipated in the Professional Leave andTeacher Outcomes program.• Ten refresher courses were delivered inmetropolitan and regional locations in 2007,with 243 teachers participating.• Four refresher courses were delivered inmetropolitan and regional locations by June2008, with 87 teachers taking part.• To support the transition of overseas-trainedteachers into government schools, theOverseas Trained Teachers program wastrialled in 2008. The trial program targetedteachers in hard-to-staff subject areas.Eighteen teachers completed the programin May 2008.• The Secondary Teacher Assistants initiativecommenced in 2008, with funding providedto schools for 90 secondary teacherassistants. These assistants allow teachersto focus on the teaching and learningprocess by reducing the administrativeburden.• Six professional learning programswere provided in metropolitan andregional locations for secondary teacherassistants and the teachers they work with.Seventy-four participants undertook theseprograms to June 2008.• The Secondary Teacher Assistants InitiativePrincipal Guidelines 2008 were distributed toall schools that were funded for the initiative.Continuously improving schoolsSchool improvementDuring 2007–08, the School Accountability andImprovement Framework was used by schoolcommunities to:• plan for improvement via a four-year schoolstrategic plan and annual implementationplan, in collaboration with regional offices• evaluate progress towards the achievementof the school’s goals and targets, usingan internal school self-evaluation and anexternal school review process• report on progress in core performanceindicators via a school-level annual report• manage risk and compliance with legislationand Departmental policies via the onlineSchool Compliance Checklist.To support the continued effectiveness of theframework, the supporting guidelines andtemplates are updated annually in responseto feedback from schools and regions andto ensure their alignment with changes inDepartmental policy.The Department draws on a range ofresources and strategies to further supportschool improvement, including the TargetedSchool Improvement initiative. Regional officesprovide support to schools where studentperformance is below expected levels.Highlights• In 2007, over 400 primary and secondaryschools undertook a year of self-evaluation,review and planning to support thedevelopment of their school strategic plan.This four-year plan is supported by anannual implementation plan.• The School Compliance Checklist,implemented across the state in February2007, provides a means for schools toself-assess their compliance with legislativeand Department policy requirements. Thechecklist helps to reduce the administrativeburden on principals.• All government schools completed anannual report to their school community.• Approximately 160 schools receivedadditional regional support during 2007–08through Targeted School Improvementfunding.PartnershipsThe Department continued to encouragegovernment schools to engage in partnershipactivity. These partnerships encompass46DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsconnections between schools and thecommunity sector, the business andphilanthropic sectors, local government, othereducation providers and parents. Schools areencouraged to embark on partnerships thataddress the particular needs of the school, itsstudents and the local community.Highlights• The Government released the Blueprint forEarly Childhood Development and SchoolReform discussion papers, which outlinedthe proposed areas of reform, including afocus on strengthening partnerships withfamilies and the community to improveeducational outcomes.• The Office for Children and Early ChildhoodDevelopment transferred to the Department,which provided the opportunity to developstronger connections among schools,the broad pre-school sector and localgovernment.• The Department established the EducationRegeneration and Community PartnershipsDivision, which is focused on supportingschools to undertake effective partnershipswith the community.• There was increasing interest from thecommunity, business and philanthropicsectors in making positive contributions topublic education.Regeneration projectsThe Department has continued to supportschool regeneration projects across the state.A regeneration project is a planned responseby a group of schools, their communities, earlychildhood service providers and the Departmentto enhance education in a local area.The key drivers of regeneration projectsare improved curriculum provision, studentoutcomes, pathways and the redressing ofdisadvantage. Typically regeneration projectsare large-scale and complex, and havesubstantial infrastructure implications.The 2007–08 State Budget announcedtotal funding of $93.3 million over two yearsto commence the implementation of eightregeneration projects. These projects arelocated in Altona, Laverton, Broadmeadows,Dandenong, Western Heights (Geelong),Colac, Bendigo and Wangaratta.Highlights• The large-scale Broadmeadows Regenerationproject has a budget of $25 million.Seventeen primary, secondary and specialistschools will be reconfigured as four primaryschools, one secondary college (with twoYears 7–9 campuses and one Years 10–12campus) and two specialist facilities.• The Bendigo Education Plan aims torevitalise the city’s educational facilitiesthrough the establishment of four newstate-of-the-art secondary colleges. Thisinvolves the building of new schools on theexisting sites of Weeroona College andEaglehawk Secondary College, as well asthe creation of two new schools throughthe merger of Flora Hill Secondary College,Golden Square Secondary College andKangaroo Flat Secondary College. Themerger took effect in January 2008.Leading Schools FundOne hundred and sixty-two governmentsecondary schools are involved in the LeadingSchools Fund program. Four hundred andfifty additional teachers have been employedin total through the Leading Schools Fund forthree years. Funding for 265 of these teachersinvolved in Phases 1 and 2 concluded in2007. Funding for 185 teachers involved inPhase 3 concludes in December 2008. Eachparticipating school received an averageallocation of 2.6 additional teachers for threeyears and $390,000 for capital works, enablingschools to build or redevelop innovativelearning spaces to support new approaches toteaching and learning. The Leading SchoolsFund has supported the implementation of newmodels of secondary provision and the transferof innovative pedogogy and curriculum optionsacross the system.Compulsory years47

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsFacilities and infrastructureEmergency and security managementThe Department coordinated the installationof 90 new and replacement alarm systems inschools during 2007–08.The Department developed a colour-codedalert notification system for all schools(including non-government schools) to informof any critical incidents or events that mayimpact on the safety of students and staff. Thecolour-coding outlines the type of responseschools are required to use to deal with thesespecific incidents or events.Crisis response training was provided forover 600 staff, including regional personnel,psychologists, social workers, primary welfareofficers and school personnel.There were ten significant school fires during2007–08, with structural and replacementcosts estimated at approximately $3.15 million.Asset projectsThe 2007–08 State Budget committed$555 million in new capital funding for schooleducation. This funding directed:• $50 million for seven new schools or stagesthereof• $27 million to replace four schools• $93.3 million for the Regeneration program(see page 47)• $204.6 million for modernising andimproving existing school sites, includingthe provision of $20 million for the BetterSchools Today program• $35 million for land acquisition• $7 million for computers for schools• $3.3 million for the Science RoomsRedevelopment program• $13.5 million for the Securing the Future ofSmall Rural Schools program• $1 million for Planning for Selective EntrySchools (see page 43)• $10 million for Maribyrnong SecondaryCollege (Sports School)• $50 million for the Technical Wings andTrade Equipment for Government Schoolsprogram• $60.5 million for the Ultranet project.School councilsSchool councils play a central role ingovernment schools in Victoria. Each schoolcouncil determines the school’s directionand supports the school to achieve the goalsand targets of its Strategic Plan and AnnualImplementation Plan, particularly to improvestudent outcomes in the areas of studentlearning, engagement and wellbeing, andpathways and transitions.The Education and Training Reform Act2006 and Education and Training ReformRegulations 2007 set out the functions, rolesand responsibilities of the school council,school council members and the principal,as the council’s Executive Officer. Each yearthe school community has the opportunity toelect parents and Department employees tothe school council. In addition, school councilsmay decide to co-opt community membersfrom the school or the wider community toprovide expertise in particular areas.Highlights• New Ministerial Orders, which came intoeffect in 2008, provided improved processesand clarity for the school council electionprocess.• Training for school councillors, includinginduction programs, continued to bedelivered by regional offices.School regionsThe nine regional directors are responsible forsupporting and building the capacity of regionsand schools to deliver high-quality educationalservices and improved student outcomesthrough continuous school improvement.The transformation of the government schoolsystem is being achieved through effectiveand dynamic relationships between schools,regions and the central office.48DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsRegions value and contribute to a cultureof learning and improvement at all levels ofthe system. They are characterised by thebehaviours shown in the Effective Regionsmodel below.The key functions of regions include:• meeting corporate responsibilities• improving the performance of everygovernment school• strengthening strategic partnerships toprovide multiple pathways and opportunitiesfor students• deploying their resources effectively toimprove student learning outcomes.Regions, in partnership with the central office,play an important part in the implementationof the Government’s school education reformagenda. They do this by:• providing leadership to translate thesystem’s aspirations into reality for studentsin schools• managing and supporting schools to providea high-quality education for all students• developing the capacity of leaders to planstrategically for school improvement• developing the capacity of regionaland school-based staff as facilitators ofcontinuous learning communities andcreating the strategies that sustain them• monitoring the achievement of clearlyarticulated, high-quality outcomes and usingdata to inform and refine improvementstrategies• supporting schools to implement innovativeapproaches to increase levels of studentachievement, retention, engagement andwellbeing• promoting learning communities andcollaboration, and fostering supportivenetworks within and across local governmentareas to improve education and employmentoutcomes• engaging with the wider communityto develop strategic relationships andpartnerships to build capacity and bringthe resources of the community to thework of schools.With the formation of the new Department ofEducation and Early Childhood Development,in 2009 regions will assume responsibility forthe integration of services for children andyoung people from birth to 18 years andtheir families.Effective Regions modelProfessional leadershipStrategic use of resourcesFocus on teachingand learningLearning communitiesEffective regionsStrategic stakeholderpartnershipsFocus on continuousimprovementHigh expectationsof all learnersShared moral purposeCompulsory years49

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsRegional directors and contact details as at30 June 2008 are listed below.Metropolitan regionsEastern Metropolitan RegionDr Jim WatterstonRegional DirectorLevel 3, 295–297 Springvale RoadGlen Waverley Victoria 3150Telephone (03) 9265 2400Facsimile (03) 9265 2444Website http://www.emr.vic.edu.auNorthern Metropolitan RegionMr Wayne CraigRegional DirectorLevel 2, 189 Urquhart StreetCoburg Victoria 3058Locked Bag 2001Coburg Victoria 3058Telephone (03) 9488 9488Facsimile (03) 9488 9440Website http://www.nmr.vic.edu.auSouthern Metropolitan RegionMr Peter GreenwellRegional DirectorLevel 1, 33 Princes HighwayDandenong Victoria 3175PO Box 5Dandenong Victoria 3175Telephone (03) 9794 3555Facsimile (03) 9794 3500Website http://www.smr.vic.edu.auWestern Metropolitan RegionMs Katherine HendersonRegional DirectorLevel 4, Wool House369 Royal ParadeParkville Victoria 3052PO Box 57Carlton South Victoria 3053Telephone (03) 9291 6500Facsimile (03) 9291 6565Website http://www.wmr.vic.edu.auNon-metropolitan regionsBarwon South Western RegionMr Grant RauRegional Director5A Little Ryrie StreetGeelong Victoria 3220PO Box 2086Geelong Victoria 3220Telephone (03) 5225 1000Facsimile (03) 5225 1099Website http://www.bsw.vic.edu.auGippsland RegionMs Michonne van ReesRegional DirectorCnr Kirk and Haigh StreetsMoe Victoria 3825PO Box 381Moe Victoria 3825Telephone (03) 5127 0400Facsimile (03) 5126 1933Website http://www.gippsland.vic.edu.auGrampians RegionMr Malcolm MillarRegional Director109 Armstrong Street NorthBallarat Victoria 3350Telephone (03) 5337 8444Facsimile (03) 5333 2135Website http://www.grampians.vic.edu.auHume RegionMr Stephen BrownRegional DirectorArundel StreetBenalla Victoria 3672PO Box 403Benalla Victoria 3672Telephone (03) 5761 2100Facsimile (03) 5762 5039Website http://www.hume.vic.edu.au50DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsLoddon Mallee RegionMr Ron LakeRegional Director37–43 Havlin Street EastBendigo Victoria 3550PO Box 442Bendigo Victoria 3552Telephone (03) 5440 3111Facsimile (03) 5442 5321Website http://www.lcmdoe.vic.edu.auNon-government schoolsThe Minister for Education has legislativeresponsibility for the education of all primaryand secondary school students in Victoria.The Department contributes to the achievementof the Government’s goals and targets foreducation by providing funding and othersupport to non-government schools in Victoria.As of March 2008, a total of 707 registerednon-government schools – 486 Catholicand 221 independent – were educating over298,000 students statewide, or 35.6 per cent ofall Victorian school students. Of these students,61.7 per cent attended Catholic schools and38.3 per cent attended independent schools.In 2007–08, the Department provided over$380 million in financial assistance to nongovernmentschools in untied recurrent fundingallocated through the Financial AssistanceModel for Non-Government Schools, whichwas introduced in consultation with sectorauthorities in January 2006. A further$11.5 million was provided to non-governmentsector authorities for specific-purpose grantsfor targeted programs, including studentswith special needs, suicide prevention andInternet access.In addition, $7.5 million, of a total $30 million incapital support committed over four yearsin the 2006–07 State Budget, was provided toassist needy non-government schools toupdate educational facilities.Non-government schools are also able toaccess a range of resources and opportunitiesavailable to government schools, includingteacher professional development andcurriculum materials, government-negotiatedpricing for broadband access and a range oftaxation concessions or exemptions.Eligible non-government school students inouter and non-metropolitan areas can accessthe Government’s conveyance allowanceand school bus service. Non-governmentschool students are also able to access publictransport travel concessions.The Department liaises with the nongovernmentsector authorities on funding andcollaborates on a range of program initiativesto improve learning outcomes acrossall sectors.Highlights• In 2007, seven Catholic schoolswere accredited as Performance andDevelopment Culture schools and a further16 undertook external verification foraccreditation in 2008.• Collaboration with the non-governmentsector continued across a range ofcurriculum initiatives, including strategies toimprove literacy and numeracy outcomesand for cross-sectoral initiatives such asdrug education and values education.• Non-government school studentparticipation in the Premier’s ReadingChallenge increased from 52,000 in 2006to 64,300 in 2007.• $22.1 million was provided for studenttransport for non-government schoolstudents, mainly in outlying areas, and$4.6 million was provided in public transportsubsidies through the Department ofInfrastructure.Compulsory years51

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsLater years and youth transitionsThe post-compulsory years of schoolingtypically consist of Years 10–12. Researchshows that young people who are engagedwith schooling until Year 12 have betterlong-term employment, economic and socialoutcomes. For this reason, the Governmenthas committed to a target of 90 per centof young people completing Year 12 or itsequivalent by 2010. In order to achieve thistarget, post-compulsory education focuseson providing young people with effectiveand varied pathways. These pathways aredesigned to support students in attainingtheir first formal qualification and in makinga successful transition from school tofurther education, training, employment or acombination of these.Students in Victoria can choose between threeformal qualifications from secondary school:the Victorian Certificate of Education (VCE),the Victorian Certificate of Applied Learning(VCAL) or the International Baccalaureate(IB) Diploma. Most young people completeone of these qualifications while at school, buta smaller number undertake senior secondarystudy in the TAFE and adult communityeducation (ACE) sectors.In 2007, in government and non-governmentschools:• 148,367 students were enrolled in at leastone unit of the VCE – an increase of 1539students from 2006• 47,362 students were eligible to completetheir VCE and, of these, 97 per centsuccessfully completed the qualification –an increase of 1089 students from 2006• 11,762 students were enrolled in the VCAL– an increase of 1154 students from 2006.Expanding pathways andtransitionsTo encourage young people to stay in schooland to enable them to complete a seniorsecondary certificate, post-compulsorypathways have been expanded and include astrong focus on vocational curriculum options.Victorian Certificate of AppliedLearningThe VCAL is a hands-on option for Years11–12 students, offering practical work-relatedexperience and learning. It is available in bothgovernment and non-government schoolsand also through TAFE and ACE providers.The Government allocated approximately$12 million in 2007–08 to provide assistanceto schools and other providers to coordinatethe provision of VCAL. The investment hassupported further growth in enrolments and thepositive study and employment outcomes theprogram provides.VET in SchoolsVocational Education and Training (VET) inSchools programs (including school-basedapprenticeships and traineeships) comprisenationally recognised VET certificates thatcan be undertaken by senior secondarystudents as part of the VCE or VCAL. VET inSchools programs are designed to expandopportunities and pathways for seniorsecondary students and improve postcompulsoryeducational outcomes in linewith the Government’s goals and targets foreducation. They also contribute to addressingindustry skill needs.52DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsVET in Schools programs are typicallydelivered through partnerships betweenschools, industry and training providers, andincreasingly provide opportunities for studentsto participate in workplace learning.The number of students undertaking VET inSchools programs in government and nongovernmentschools has increased from36,504 in 2006 to 40,764 in 2007.To support effective provision of VETin Schools programs and the VCAL, aDepartmental Statement on ForwardDirections for Vocational Learning in Schoolswas distributed to schools in December 2007.The statement sets out the broader policypurposes of VET in Schools programs,which include:• student engagement, participation andretention• preparing students for general labourmarket transitions by developing the skills,knowledge and attributes that are requiredin the contemporary workplace• meeting the skill needs of industry bydeveloping in students the skills, knowledgeand attributes to assist their transitioninto specific industries and higher levelVET pathways.In addition, the Department has commenceda regional planning process for theseprograms. By the end of 2007–08, allDepartmental regions commenced thedevelopment of a regional VET in Schoolsplan and a VCAL plan. The plans are designedto maximise the positive outcomes forVET and VCAL students, including havingenough flexibility to balance the choices andpreferences of students with the demands ofthe labour market.School-based apprenticeshipsand traineeshipsSchool-based apprenticeship and traineeshippathways for senior school students continuedto expand. In 2007, there were 6248 studentsin government and non-government schoolsin apprenticeships or traineeships. Thesewere undertaken as part of a program ofstudies that combined the VCE or the VCALwith a nationally accredited training certificateand employment.Re-engagement programsRe-engagement programs are approvedprograms based in the community that providethe VCAL to students who are unable orunwilling to undertake their qualifications ina school setting. In 2007, the Departmentintroduced new funding arrangements forthese programs that allow for funding eligiblestudents who enrol late.In 2008, the enrolment date was extended until28 April 2008. This provided schools with anextended time period for engaging studentsand attracting the Student Resource Packagefunding to support these programs.Forty schools across the state are runningapproved programs in 2008. This yearmore than 75 students qualified for the lateenrolment funding.Student support initiativesIn addition to expanding the pathways onoffer to students in the post-compulsory yearsof schooling, the Department improved thesupport available to students as they navigatethose pathways.Managed Individual PathwaysIn 2007–08, over $14 million was distributedto Victoria’s government schools under theManaged Individual Pathways initiative.This initiative ensures that all students aged15 years and over in government schoolsare provided with individual pathway plansand associated support. These plans enablea successful transition through the postcompulsoryyears to further education,training or full-time employment. The programLater years and youth transitions53

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationscontinues to gain in strength, with over 200Managed Individual Pathways coordinatorsparticipating in professional learning providedby the Department in Term 1, 2008.Managed Individual Pathways plans can helpyoung people to:• start discussions with their teachers, familyand friends about where they would liketo go and what they would like to do inthe future• manage their expectations of theirpost-school lives• make a smooth and directed transition fromcompulsory schooling to further education,training and employment• develop skills to manage their pathwaysthroughout their working lives• develop their knowledge, understanding andexperience of opportunities in education,training and employment.Funding is allocated to schools based ona model that takes into account schoolenrolments, as well as an additional componentto support students at risk of disengaging ornot making a successful transition, as indicatedby the school’s Student Family OccupationIndex. Guaranteed minimum funding levels forsmall and large schools are also in place, asare special funding allocations for students atspecial schools.The Managed Individual Pathways MappingTool allows schools to easily identify studentswho have characteristics that are known toincrease the risk of early school leaving andto track, monitor and evaluate interventionsused to reduce these risks. The Mapping Toolwas made available to all schools in 2007,accompanied by significant and ongoingprofessional development and training. TheMapping Tool draws down relevant data fromthe Department’s CASES21 student databaseand presents it in an accessible spreadsheetformat. The software and the Mapping Tool areavailable to Victorian government schools freeof charge.Careers and transition resourcesTo assist careers coordinators and teachersin working with all students, guidelines havebeen developed for using the online learningand teaching careers and transition resourceswith targeted groups. These include:• Koorie young people• culturally and linguistically diverse and ESLyoung people• young people with disabilities• rural and remote young people• young people not in education, employmentor training.Statewide professional development onusing the resources was conducted in 2007,with ongoing professional developmentprovided as required. Training in myfuture, RealGame series, Managed Individual Pathways,the At Risk Mapping Tool and linking careersto the Victorian Essential Learning Standards(VELS) and the School Accountability andImprovement Framework is ongoing.Professional learning for teachersThe Department implemented a number ofprofessional development initiatives for careerscoordinators and teachers in governmentschools to enhance their capacity to providequality, up-to-date and accurate careersinformation and assistance to students.The programs commenced in 2007 and, bythe end of 2008, 80 careers coordinators ingovernment schools will have participated inone of the programs.Career Education ScholarshipprogramThe Career Education Scholarship programprovides funding to careers teachers ingovernment schools to undertake the RMITGraduate Certificate in Career Education.This graduate certificate is a one-year,part-time program designed to developcompetencies in career education forteachers, or individuals working in the wider54DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationscommunity who are responsible for providinginformation, guidance and counselling aboutcareers and work-related issues. Recipientsof the scholarship also have to undertake aprofessional careers placement, a one-dayVET familiarisation program and a mentoringprogram.Industry Placements programThe Industry Placements program providesa unique opportunity for selected careersteachers to spend three weeks with anemployer or group training provider, exploringindustry pathways. Each teacher uses theinsights gained to develop a school–industrylink project to benefit young people. Someschools have used the experience to establishthe foundations for ongoing school–industrypartnerships.Cross-sectoral initiativesThe Department plays a key role in providingassistance to young people, particularly thoseat risk of early leaving or those whoare disengaged. A key means for provisionof this assistance is through working withstudents and providers in the school, vocationaleducation and training providers, the ACEsector and other agencies. In particular, theDepartment provides cross-sectoral policyleadership and the management of crosssectoralprograms. The objective of the crosssectoralinitiatives is to assist young peopleto achieve sustainable education, training oremployment outcomes.Youth Transition Support initiativeThe Youth Transition Support initiativecommenced in January 2007 and providesfunding for 24 youth transition workers across12 Local Learning and Employment Network(LLEN) areas. These areas were selected onthe basis of relatively low Year 12 completionrates, high rates of youth unemploymentand high numbers of young people not ineducation, training or full-time employment.Transition support workers providepersonalised assistance to young peopleaged 15–19 who are not in education ortraining, not working full-time and do not haveYear 12 or an equivalent qualification. Theobjective is to help disengaged young peopleachieve a sustainable education, training oremployment outcome.The 12 LLEN areas funded for the YouthTransition Support initiative are Baw BawLatrobe, Brimbank Melton, FrankstonMornington Peninsula, Goldfields, GoulburnMurray, Highlands, Hume Whittlesea, InnerNorthern, Maribyrnong and Moonee Valley,Smart Geelong, South Eastern, and WynBay.During 2007, transition support workersassisted a total of 1180 young people. Supportfor 859 (72.8 per cent) of these young peoplecontinued into 2008, with 399 of them instudy or work. A further 77 young people(6.5 per cent) maintained an education, trainingor employment placement for six months.A formative evaluation was conducted in2007. The evaluation recognised that theinitiative meets a targeted need. Findingswere used to modify program guidelines andoperations to improve outcomes, effectivefrom 1 January 2008.Local Learning and EmploymentNetworksLLENs have a crucial role to play in continuingprogress towards the Government’s Year 12 orequivalent completion target.The LLENs initiative supports cooperationbetween different providers and agencies, andacts to strengthen the capacity of stakeholdersto support young people’s transition throughschool to further education, training or full-timeemployment.The core role of the LLENs is the creationand further development of sustainableLater years and youth transitions55

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsrelationships and partnerships betweenlocal education providers, industry and thecommunity to develop initiatives that improvethe education, training and employmentoutcomes of young people. There is aparticular focus on those students consideredmost at risk of leaving school early.Over the course of 2007, the statewidenetwork of 31 LLENs brokered 112partnerships that involved 2138 organisationalstakeholders, comprising schools, TAFEand ACE providers, industry and communityorganisations. By working with stakeholdersto develop broader education and trainingprograms and pathways and to supportyoung people to take up these options,LLENs reported positive contributions tothe outcomes of over 38,000 young people.This number included 5089 young people whowere re-engaged with education or training.At the end of 2007, the Minister for Educationannounced that LLENs would be re-funded atthe end of their current contracts for a furtherthree-year period, covering 2009–11.Regional Youth CommitmentsA Regional Youth Commitment is a frameworknegotiated within and between all local andregional stakeholders to link and coordinatepathway and transition support arrangementsfor 15–19-year-olds. It also ensures thatthere is continuous support for a youngperson to remain in or re-enter education andtraining and attain, as a minimum, Year 12 orequivalent qualifications.Regional Youth Commitments arose as a resultof work initiated in 2005 by the GrampiansRegion of the Department. Regional YouthCommitments have now been establishedor are being established in eight of the nineregions in Victoria.A formative evaluation of Regional YouthCommitments was conducted in the firsthalf of 2008. Findings from this evaluationwill be used to assess progress to date andto improve future success and sustainabilityof the Regional Youth Commitments in eachregion.On TrackThe On Track survey tracks the destinationsof Year 12 or equivalent completers and earlyleavers from all providers six months afterthey leave school. The publication of On Trackdata contributes to a better understandingby parents, students and schools of thedestinations of young people after their finalyear and celebrates the broad range ofoutcomes that all providers create for students.At the time of survey, assistance and adviceis offered to those students not in education,training or full-time employment.The 2008 On Track survey for Year 12 orequivalent completers found that, for youngpeople who completed Year 12 in 2007, 72 percent of students were in education or training.Of those not in education or training, 25 per centwere employed full- or part-time or had deferredfurther study, and 3 per cent were lookingfor work.Key findings were the increase in thepercentage of Year 12 or equivalentcompleters who had taken up anapprenticeship or traineeship at the timeof the survey (9.8 per cent compared with8.1 per cent in 2007). There was a continuedincrease in the percentage of students fromall schools deferring university places(11 per cent compared to 8 per cent in 2007).Commonwealth–StatepartnershipsBoth the Commonwealth and the Victoriangovernments provide programs and initiativesthat support young people aged 16 and overto attain their first formal qualifications andto make the transition to further education,training and/or employment.56DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsIn order to achieve better outcomes for youngpeople, the Department works in collaborationwith, or supports, the CommonwealthDepartment of Education, Employment andWorkplace Relations on a number of projects.Significant current projects are concerned withthe future of Australian Technical Colleges andthe new Trade Training Centres initiative.Australian Technical CollegesThe Australian Technical Colleges wereestablished by the previous CommonwealthGovernment in all states and territories tofacilitate students seeking to undertakeschool-based apprenticeships as part of theirYear 12 certificates. Victoria has six AustralianTechnical Colleges. Three were established aspart of government schools and three are partof non-government schools.The current Commonwealth Government hasannounced it will discontinue the AustralianTechnical College program as of 31 December2009.The Department is currently working inconjunction with the Commonwealth and localschool communities to incorporate the tradetraining services provided by the AustralianTechnical Colleges within the Victorianeducation and training system. This willassist the Victorian Government’s planningand provision of trade training services andcomplement the significant investment invocational education being made throughoutVictoria.Trade Training CentresTrade Training Centres are a CommonwealthGovernment initiative. A total of $2.5 billionhas been allocated over the next ten years todevelop Trade Training Centres in schools.Funds can be used to purchase equipmentand carry out minor facility upgrades or to fundmajor capital investment.The Trade Training Centres initiative has twoobjectives:• seeking to improve Year 12 or equivalentcompletion rates• helping to address skill shortages intraditional trades and emerging industryareas.The initiative guidelines encourage:• Certificate III qualifications in skill shortageareas• the formation of partnerships betweenschools (government and non-government)and TAFE providers, registered trainingorganisations and industry.The Trade Training Centres initiative ismanaged by the Commonwealth in partnershipwith the states and territories through apartnership arrangement.Through the partnership arrangement, aVictorian Trade Training Centres Support Unithas been established to provide advice andsupport to regions and schools in developingapplications.In 2008, the Trade Training Centres initiativewas broken into two phases:• phase one – schools were invited to submiteither a full application for funding or anexpression of interest to submit a fullapplication in phase two (phase one hada submission deadline of 9 May 2008)• phase two – has a submission deadline of17 October 2008.On 9 May 2008, Victorian government schoolssubmitted $8.82 million worth of applicationsfor Trade Training Centres funding with theCommonwealth. More than $112 million worthof expressions of interest were also submitted.This includes contributions from nongovernmentschools that are in partnershipwith government schools.Later years and youth transitions57

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsServices to studentsThe diverse learning needs of students aresupported through a coordinated approach tostudent wellbeing that encompasses policy,guidelines, resources, school and classroombasedapproaches, and links to communityagencies.Student wellbeingThe Victorian government school systemsupports all students who have additionallearning needs by ensuring that the appropriatesupports, programs and educationaladjustments are in place to enable everystudent to succeed.Highlights• Ministerial Order 90 builds on and isconsistent with best-practice guidelines onanaphylaxis management policy releasedby the Department in February 2007. AllVictorian government schools receivedinformation packs in June 2008, developedin consultation with all key stakeholders, toensure compliance with Ministerial Order90. Training in anaphylaxis managementfor Victorian government schools is a keycomponent of the Ministerial Order and wasdelivered to over 7900 teachers in more than450 government schools during 2007–08.• $80 million over four years was allocated toextend the Primary Welfare Officer initiativein schools with the highest needs. In 2008,the number of schools receiving PrimaryWelfare Officer funding increased from 450to 573.• The update to Student Health in theVictorian Government Schools ReferenceGuide was completed. This revised sectionprovides step-by-step advice on matterssuch as roles and responsibilities, routinesupervision to ensure safety with medicationand first aid provision, personal medicalsupport, support for specific medicalconditions and guidance on planning andsupporting student health.• In August 2007, the Minister for Educationand the Chief Commissioner of Policelaunched the manual entitled Respondingto Allegations of Student Sexual Assault:Procedures for Victorian GovernmentSchools. This manual gives schoolscomprehensive information about what todo if a student discloses an alleged sexualassault, how to address the needs of allinvolved in the allegation, and what supportis available for the school in relation to thosewho assist with management of an allegedstudent sexual assault. The Department hasthe safety and wellbeing of all students asits number one priority. The manual reflectsthis philosophy.Drug educationA unified framework was implementedin all Victorian government, Catholic andindependent schools, offering effective,preventative drug education programs andresources. The Department provides supportto schools in the development of individualdrug education plans, policies to addressdrug-related issues and support materials tofacilitate program evaluation and improvement.Highlights• The memorandum of understandingbetween the Department, the CatholicEducation Commission of Victoria and theAssociation of Independent Schools ofVictoria continued. This gives young peoplefrom all school sectors equity of access todrug education initiatives, including those58DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsthat are part of the National School DrugEducation strategy.• In 2007, 347 schools prepared new actionplans to enhance drug education delivery.In 2008, 402 schools are completing newaction plans.• Approximately 50 per cent of governmentschools reported at least one memberof staff participating in drug educationprofessional development.• Sixty-two per cent of all government schoolsreported involvement of parents in drugeducation programs.• Staff and student surveys developedunder the Drug Education Evaluation andMonitoring project were implementedin a further 244 schools during 2007. In2008, 212 schools are participating in theproject. The surveys assist these schools toevaluate the effectiveness of drug educationprograms.• The Indigenous, Rural and Remote DrugEducation initiative, involving 12 Victorianschool communities, was extended into2008. This project will develop, implementand document local community activitieswith Indigenous students and familiesacross schools in Mildura and Swan Hill.• In 2008, a two-year drug education researchinitiative commenced in partnership withthe University of Melbourne to improvedrug education in Victorian secondaryschools. This research will document howan evidence-based drug education programleads students to make safer, healthierchoices.• Interactive drama, arts and informationtechnology curriculum materials related todrug education for Years 7 and 8 studentswere produced for schools.• Eight evidence-based alcohol fact sheets,targeting parents and teenage students,were prepared for all Victorian schools anddistributed online.Students with disabilitiesThe Program for Students with Disabilitiesprovides schools with additional resources tomeet the needs of students with disabilitiesattending a special or regular school. Asystematic approach is used to design anddevelop programs and strategies to supportstudents with special needs. Targetedprograms strengthen the capacity of schools,families and school regions to improveeducational outcomes for all students.A strengthened approach to meeting the needsof students with a language disorder continuesto be implemented successfully. This approachacknowledges that all schools have studentsrequiring support. It aims to build the capacityof schools and teachers to provide appropriateprogram and learning experiences that willimprove the oral language skills of studentswith a language disorder.Number of students individually supported throughthe Program for Students with Disabilities ingovernment schools, February 2008FTE studentsPer centRegular schools 9,901 55.4Special schools 7,970 44.6Total 17,871 100Support for familiesEducation MaintenanceAllowanceLow-income families continue to receivesupport through the Education MaintenanceAllowance. The allowance is paid in twoinstalments each year. To be eligible forthe allowance, a parent or guardian mustbe eligible to receive a Centrelink pension,allowance or benefit under the StateConcessions Act 2004, or be a Veterans’Affairs pensioner or a foster parent on the firstday of Term 1 and Term 3 respectively.Services to students59

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsIn 2008, eligible parents of primary studentsreceive $215 per year. Eligible parents ofsecondary students receive $430 per year.During 2007–08, the parents and guardiansof approximately 208,700 students receivedthe allowance. The Education MaintenanceAllowance is indexed annually to the localconsumer price index to ensure that futureincreases in the payment reflect the increasein the cost of living.School Start BonusThe School Start Bonus was introduced bythe Victorian Government in 2006 to assistparents and guardians of Prep and Year 7students in meeting the start-up costs ofsending their child to school. The initiativeprovides financial assistance to families forexpenditure on school and sporting uniforms,school bags, books and related expenses.The bonus is a one-off payment of $300 thatis not means tested. The bonus is paid tofamilies using a payment voucher which theparent or guardian presents at an AustraliaPost office for a cash redemption.In 2007–08, vouchers were issued for over129,000 students at a cost of approximately$38.9 million.Student transportThe free school bus service administered bythe Department of Transport on behalf of theDepartment conveys approximately 70,000students daily, predominantly throughout ruraland regional Victoria.Conveyance allowances may be provided toeligible students to assist with travel costswhere access to a transport service is notavailable.The Department also provides transportassistance for students attending specialistschools. In 2007–08, approximately 6400students were transported by bus and taxito these schools at a cost of approximately$38 million.60DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsAdolescent health services (schools)The Secondary School Nursing programmoved from DHS to the Department inDecember 2007.The program offers support to young people atrisk. The Secondary School Nursing programemploys 100 FTE nurses in 199 targetedgovernment secondary schools across thestate to provide health promotion, earlyintervention and health counselling to studentsin partnership with the school welfare team.School nurses work in collaboration withother local key stakeholders in the delivery ofprograms designed to support the health andwellbeing of their school community.Annual action plans, developed by secondaryschool nurses in consultation with school staffand students to identify priority issues for2008, have been completed.Adolescent health services (schools)61

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsPolicy and regulationThe Department supports and advises theMinister for Education and the Minister forChildren and Early Childhood Development,and helps with the management andadministration of their portfolios. In particular,the Department provides support to theMinisters in the areas of internationaleducation, information and promotions,external and intergovernmental relations,and the implementation of legislation.International educationThe Department manages a number ofspecific, high-quality international educationprograms and services. It promotes andadministers the overseas fee-paying studentprogram in Victorian government schoolsand conducts and facilitates student andstaff exchanges, study tours and officialdelegations.Increasingly, the Department is engagingin offshore capacity-building initiatives thathighlight the strength of Victoria’s curriculumand innovative approaches to schooleducation.Highlights• The Overseas Study program waslaunched 18 March 2008 by the Minister forEducation. This new initiative will promoteglobal awareness and global literacyamong a cohort of secondary studentsfrom government schools who have notpreviously had the opportunity to studyoverseas. The program is at the field trialstage with more than 80 Year 9 and 10students selected from four Victorianregions undertaking study offshore.• The Victoria International School of Sharjahwas built to a design by a Victorian architect.It is owned by the Government of Sharjahand provides curriculum, pedagogy,and assessment and reporting basedon Victoria’s model of school education.The school commenced operations on2 September 2007 and the Premier ofVictoria officially opened the junior schoolon 10 February 2008. At full capacity, theschool will cater for 2800 students fromkindergarten to Year 12.• A Department-led consortium successfullydelivered a suite of professionaldevelopment programs in Qatar betweenFebruary and April 2008. These includede-learning, classroom management, schoolself-review, subject coordination andstudent welfare.• The Department continued to support theAustralian East Timor Friendship Schoolsproject. Seventy-three Victorian primaryand secondary schools have establishedlinks with schools in Timor-Leste as part oftheir project.• The Department hosted 42 delegationscomprising 597 participants. Delegationscame from Bahrain, the People’s Republicof China, Denmark, Hong Kong, India,Indonesia, Japan, Kyrgystan, Malaysia, theNetherlands, New Zealand, Norway, thePhilippines, Qatar, Singapore, South Korea,Thailand, the United Arab Emirates, theUnited Kingdom and Vietnam.International studentsInternational students make a significanteducational, cultural, social and economiccontribution to Victoria.Highlights• During 2007, there were more than 2900international students from more than 53countries enrolled in government schools.This represents a 9.8 per cent increase62DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsover the previous year and demonstratesinternational recognition of the Victoriangovernment school system.• An independent audit of school complianceagainst Departmental quality standardswas carried out in 2007 in 22 governmentschools. A high level of compliance wasidentified.Cross-government activityThe Department continues to strengthenlinkages with other Government agencies andto develop whole-of-government strategiesthat effectively utilise government infrastructureoverseas.Highlights• In cooperation with the Departmentof Innovation, Industry and RegionalDevelopment (DIIRD), the Departmentcontinued to support the EducationService Managers in the Bangalore, Dubai,Shanghai and Tokyo Victorian GovernmentBusiness Offices. These offices promote:– Victoria’s capacity to deliver qualityeducation services offshore– Victoria as a preferred study destination.• Education Service Managers continuedto support Victorian education institutionsoffshore and provide market intelligence toboth Departments.ProgramsThe Department implemented a number ofprograms to support international educationin Victoria, including student, teacher andprofessional exchange programs.Highlights• The fifth International Education Weekwas held in March 2008 to celebrate thecontribution that international educationmakes to Victoria’s cultural diversity, andsocial and economic development. TheGovernor welcomed over 700 internationalstudents, teachers and stakeholders to afunction at Government House that wasattended and addressed by the Minister forEducation. Regional functions were heldin Ballarat, Bendigo, Geelong, Gippslandand Warrnambool. These occasions werefacilitated by the Department and DIIRD.• Approximately 270 government schoolscontinued to undertake activities underformal and informal sister-schoolarrangements with schools in overseascountries.• The Department conducted student studytours for 1535 overseas students on afee-for-service basis, placing them ingovernment schools for periods of up toten weeks.• The Division hosted 40 participantsfrom South Korea and Japan in threeprofessional development programs toimprove the teaching and learning of Englishfor secondary and elementary teachers ofEnglish from overseas.• Twenty-eight Victorian teachers exchangedschools and homes for the school yearwith teachers from Canada, New Zealand,Switzerland, the United States of Americaand the United Kingdom.• Eighty teacher assistants participatedin programs that bring native speakersof Chinese, French, German, Italianand Japanese to assist with theteaching and learning of languageand culture in government schools.Negotiations with Indonesian universitiesare proceeding to develop similar supportfor the teaching and learning of theIndonesian language.• The Visiting Journalist program continued,with journalists from India and Thailandvisiting Victoria in 2007–08 to witnesshow the international student programworks and what Victorian education hasto offer.Policy and regulation63

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsMarketing and communicationsA new suite of marketing material wasdeveloped during the year.Highlights• A ‘Friends of Victoria’ function was held inBerlin as part of a communication strategyto leverage off the networks of Victorianalumni.• The website wasre-launched in July 2007.• New DVDs were developed and translatedinto six languages to promote studyingin government schools. DVDs werealso created to market school educationin the four regional areas of Geelong,Warrnambool, Ballarat and Bendigo.Information and promotionDuring 2007–08, the Department promotedearly childhood development and schooleducation throughout Victoria in a varietyof ways.The Department produced a number ofpublications for external audiences duringthe reporting period.Significant work continued to align allDepartmental online communications into asingle-entry public website . This resulted in improvedaccess to information for the Victorian public,early childhood communities and schoolcommunities. The migration of the formerDHS Office for Children website to the site also progressed.The Department’s website averaged over amillion visits every month.Education Times continued to be a majorcommunication link with government schoolsand editorial content has now been expandedto cater for early childhood service providersas well. The newspaper is published fortnightlyduring each school term and distributed tolocal councils, all early childhood providersand government schools.DEECD Mail Bulletin to Schools continued tobe a key communication tool between schoolsand the Department. Distributed weekly viaemail, the bulletin provides Departmentalinformation on policy and staff issues, schoolmanagement, professional learning, eventsand school activities.The Welcome to School handbook wasdistributed to all parents of Prep students ingovernment schools at the beginning of theschool year. It was also distributed to thebroader community through child-care centres,public libraries and Information Victoria, andmade available online in English, Chinese,Vietnamese and Arabic at . The English version isalso in audio format.The Department’s electronic newsletter forparents, Parent Update, provided informationto parents and the broader early childhooddevelopment and education communityabout initiatives in Victorian government earlychildhood services and school education.In June 2008, the newsletter had 6160subscribers.A comprehensive events and promotionsprogram in 2007–08 included Back to Schoolweek, the Victorian School Sports Awards,the Premier’s VCE Awards, Education Week,Victorian Education Excellence Awards,Victorian School Design Awards, the Premier’sReading Challenge, Rubbish Free LunchChallenge and Literacy and Numeracy Week.The Department’s Information and ReferralService answered approximately 60,000queries from parents, students, school staffand other community members during2007–08. The service responds to queriesabout a broad range of education and earlychildhood development matters, as well asproviding recorded information about schoolterm dates for Victoria and other states,contact details for the Department’s regionaloffices, and special dates and events.64DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsServices to Ministersand policyExternal relations and strategiccoordinationThe Department supports the Ministers andthe Departmental Leadership Team in fulfillingtheir responsibilities across the portfoliothrough Ministerial and executive supportfunctions, external relations, legal servicesand privacy administration.Services provided include the coordinationof briefings, correspondence, CommunityCabinet, Parliamentary services (includingParliamentary inquiries), Cabinet andlegislation, archives and records managementand Freedom of Information. These areasprovide the interface between the Departmentand the Ministers on day-to-day matters andensure that the Department’s administrativesupport functions operate effectively.Commonwealth–State relationsThe Department also supports the Ministersand the Departmental Leadership Team incontributing to the Victorian Government’sagenda in Commonwealth–State relations.Services provided relate to Commonwealth–State negotiations and inter-governmentrelations. This requires developing theDepartment’s long-term strategic policy andnew policy as required by the DepartmentalLeadership Team in relation to Commonwealth–State relations.The Department supports the Minister forEducation and the Minister for Children andEarly Childhood Development as members ofMCEETYA and the Secretary as a memberof AESOC and the COAG Productivity AgendaWorking Group.The Department also supports the Minister forChildren and Early Childhood Developmentas a member of the Community and DisabilityServices Ministers Conference, and theDeputy Secretary, Office for Children and EarlyChildhood Development, as a member of theCommunity and Disability Services MinistersAdvisory Council.Statewide outcomes for childrenThe Department’s Statewide Outcomes forChildren Division focuses government andthe community on improving the safety,health, development, learning and wellbeingof children aged from birth to 18 years inVictoria. This involves monitoring andreporting on outcomes, research, datacollection and analysis, evidence-basedpolicy and cross-government planningand partnerships. Activities during 2007–08included:• preparing the 2007 annual report: The Stateof Victoria’s Young People• publishing early childhood communityprofiles for all 79 local government areas• publishing Indigenous early childhoodcommunity profiles for 25 local governmentareas with a large Indigenous population• conducting major surveys includingthe Victorian Child Health and WellbeingSurvey• supporting the Victorian Children’s Councilto provide timely, independent and expertadvice to the Premier and Ministers onpolicies to enhance outcomes for children.Registration of governmentschoolsThe Education and Training Reform Act 2006provides for the VRQA to register and reviewschools, having regard to the Educationand Training Reform Regulations 2007.The Office for Government School Educationis responsible for managing registrationand reporting requirements for governmentschools.Policy and regulation65

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsHighlights• All government schools that were operatingat 30 June 2007 were registered withthe VRQA.• Ten additional government schools wereregistered with the VRQA and were ableto open for the 2008 school year. Theseincluded three new schools, six mergedschools and the opening of one additionalcampus for an existing school.• An additional campus for an existing schoolwas registered with the VRQA, enabling thecampus to open during Term 2, 2008.Legislation implementationThe Education and Training Reform Act2006 (the Act) and associated Educationand Training Reform Regulations 2007(the Regulations) came into effect on 1 July2007.The Act, which replaced 12 separate pieces ofeducation and training legislation, establishedthe VRQA, which has responsibility forensuring that all schools, training providersand higher education providers (exceptestablished universities) meet minimumstandards. It is also responsible for registeringstudents being home schooled.The VRQA’s role and functions incorporatethe previous responsibilities of the VictorianQualifications Authority and the RegisteredSchools Board, which were abolished whenthe Act came into effect.The Regulations relate to:• teaching service appeals• the Victorian Institute of Teaching elections• the responsibilities of the VRQA in relationto the registration of schools, homeschooling and education and trainingorganisations• admission of students, times of schooloperation, discipline, school councils, parentclubs and fundraising for government schools• the Education Maintenance Allowance,the transport of students and travellingallowances for all schools.In order to ensure that education legislationremains robust and contemporary, two Actswere developed in 2007–08, to amend the2006 legislation.The Education and Training ReformMiscellaneous Amendments Act 2007provides for:• a range of measures to assist in theadministration of the Act and implementmachinery-of-government changes• matters arising since the passing of theAct relating to the functions of the VictorianInstitute of Teaching and the VRQA.The Education and Training ReformAmendment Act 2008 includes provisionsfor the:• VCAA to support the integration of educationand early childhood services, administernational testing and improve examinationprocesses• introduction of the Victorian StudentNumber, a unique student identifier toensure that student information travels withthe student throughout their education.The Department’s legislative program for2008–09 includes the development of theEducation and Training Reform FurtherAmendment Bill 2008, which will provide for:• legislative change required to implementinitiatives stemming from the Blueprintfor Education and Early ChildhoodDevelopment• creation of new streamlined processes inrespect of performance in the VictorianGovernment Teaching Service• clarification of the functions and delegationpowers of the VRQA.The Department is also remaking theEducation (Prescribed Age) Regulations 1999,which establishes the age limits for enrolmentat government schools.66DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsYearly planning cycleThe Department also provides corporateand business planning services. In 2007–08,major activities in the coordination of theDepartment’s yearly planning cycle included:• development of a three-year corporate planfor the Department• development of a three-year Departmentalplanning framework• implementing a strategic framework toimprove business planning across theDepartment following a review of the2006–07 process• developing divisional and regional businessplans• better supporting divisions and regions toplan and assess risk through capacitybuildingprofessional development activities• developing the Department’s budgetsubmissions, culminating in the 2008–09State Budget• evaluating major activities and programswithin the Department• preparing presentations and briefings to thePublic Accounts and Estimates Committeeof the Victorian Parliament• managing the preparation of half-yearlyperformance reports for the purpose ofrevenue certification• managing the preparation of the portfolioannual reports for 2006–07• supporting the operation of the portfoliostatutory authorities.Policy and regulation67

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsFinancial reportContentsPageOperating statement 69Balance sheet 70Statement of changes in equity 71Cash flow statement 72Notes to the financial statements 73Accountable Officer’s declaration 121Auditor-General’s report 122Department of Education and Early Childhood Development(formerly Department of Education)This financial report covers the Department ofEducation and Early Childhood Developmentas an individual entity.The Department of Education and EarlyChildhood Development is a governmentdepartment of the State of Victoria. Its principaladdress is:Department of Education and Early ChildhoodDevelopment2 Treasury PlaceEast Melbourne Victoria 3002A description of the nature of the Department’soperations and its principal activities is includedin the report of operations (see Appendix 1).68DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsOperating statementfor the financial year ended 30 June 2008Note2008$’0002007$’000IncomeRevenue from government 4(a) 6,428,131 6,391,699Other revenue 4(b) 697,445 667,929Resources received free of charge or for nominal consideration – 2,2147,125,576 7,061,842ExpensesGrants and other payments 4(c) (644,558) (942,751)Employee benefits 4(d) (4,012,018) (3,823,760)Depreciation and amortisation 4(e) (216,726) (211,338)Capital asset charge (727,270) (762,036)Supplies and services 4(f) (1,485,003) (1,224,119)Resources provided free of charge or for nominal consideration 4(g) (6,476) (1,907)Finance costs 4(h) (390) (378)Other expenses 4(i) (15,574) (31,072)(7,108,015) (6,997,361)Net result from continuing operations 17,561 64,481Net result for period 17,561 64,481The above operating statement should be read in conjunction with the accompanying notes.Financial report69

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsBalance sheetas at 30 June 2008Note2008$’0002007$’000Current assetsCash and cash equivalents 7 769,943 699,607Receivables 8 770,477 674,476Other 9 32,888 4,3361,573,308 1,378,419Non-current assets classified as held for sale 10 38,624 23,873Total current assets 1,611,932 1,402,292Non-current assetsReceivables 8 48,194 37,221Other financial assets 24,772 14,266Intangible assets 11 – 2,907Property, plant and equipment 12 11,473,672 9,254,941Total non-current assets 11,546,638 9,309,335Total assets 13,158,570 10,711,626Current liabilitiesPayables 13 453,068 332,185Interest-bearing liabilities 14 3,694 3,034Provisions 15 906,495 876,367Other 17 49,361 45,202Total current liabilities 1,412,618 1,256,787Non-current liabilitiesInterest-bearing liabilities 14 2,859 3,094Provisions 15 77,814 66,905Total non-current liabilities 80,673 69,999Total liabilities 1,493,291 1,326,786Net assets 11,665,279 9,384,840EquityContributed capital 18(a) 5,242,010 5,046,130Reserves 18(b) 5,083,697 3,016,699Accumulated surplus 18(c) 1,339,572 1,322,011Total equity 11,665,279 9,384,840Contingent liabilities and contingent assets 23 12,159 12,555Commitments for expenditure 24 328,347 278,483The above balance sheet should be read in conjunction with the accompanying notes.70DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsStatement of changes in equityfor the financial year ended 30 June 2008Note2008$’0002007$’000Total equity at the beginning of financial year 9,384,840 9,103,556Effects of changes in accounting policy – 27,0259,384,840 9,130,581Gain on property revaluation 18(b) 2,149,310 87Impairment adjustment to building values (82,312) (33,188)Net income/(loss) recognised directly in equity 2,066,998 (33,101)Net result for the period 18(c) 17,561 64,481Total recognised income and expense for the period 2,084,559 31,380Transactions with the State in its capacity as owner 18(a) 195,880 222,879Total equity at the end of financial year 11,665,279 9,384,840The above statement of changes in equity should be read in conjunction with the accompanying notes.Financial report71

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsCash flow statementfor the financial year ended 30 June 2008Note2008$’0002007$’000Cash flows from operating activitiesReceiptsReceipts from government 6,325,316 6,374,213Receipts from other entities 674,953 647,234Goods and Services Tax recovered from the ATO 213,506 130,194Interest received 44,468 37,550Total receipts 7,258,243 7,189,192PaymentsPayments of grants and transfer payments (644,558) (942,751)Payments to suppliers and employees (5,575,634) (5,139,442)Goods and Services Tax paid to the ATO (21,976) (16,855)Finance costs (390) (378)Capital asset charge (727,270) (762,036)Total payments (6,969,828) (6,861,462)Net cash flows from/(used in) operating activities 26 288,415 327,729Cash flows from investing activitiesPayments for property, plant and equipment (397,631) (346,526)Payment for intangible assets (8,745) (5,241)Movements of investments (10,506) (5,353)Proceeds from sale of property, plant and equipment 2,497 1,689Finance lease receipts (proceeds from finance leases) 3,910 3,596Net cash flows from/(used in) investing activities (410,475) (351,835)Cash flows from financing activitiesProceeds from capital contributions by State Government 195,880 222,879Finance lease repayments (3,485) (3,484)Net cash flows from financing activities 192,395 219,395Net increase /(decrease) in cash and cash equivalents 70,335 195,288Cash and cash equivalents at the beginning of the financial year 699,607 477,294Adjustment to opening balance as a result of change in accounting policies – 27,025Cash and cash equivalents at the end of the financial year 7 769,942 699,607The above cash flow statement should be read in conjunction with the accompanying notes.72DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNotes to the financial statementsContentsNotePage1 Summary of significant accounting policies 742 Departmental (controlled) outputs 873 Administered (non-controlled) items 924 Net result from continuing operations 945 Summary of compliance with annual parliamentary and special appropriations 966 Restructuring of administrative arrangements 977 Cash and cash equivalents 988 Receivables 999 Other assets 10010 Non-current assets classified as held for sale 10011 Intangible assets 10012 Property, plant and equipment 10113 Payables 10314 Interest-bearing liabilities 10315 Provisions 10416 Superannuation 10517 Other current liabilities 10618 Equity and movements in equity 10719 Financial instruments 10820 Ministers and Accountable Officers (Responsible Persons) 11221 Remuneration of executives 11322 Remuneration of auditors 11523 Contingent liabilities and contingent assets 11524 Commitments for expenditure 11625 Ex-gratia payments 11726 Cash inflow information 11827 Subsequent events 11828 Annotated receipt agreements 11929 Trust account balances 120Financial report73

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNote 1 Summary of significant accounting policies(a) Statement of complianceThe financial report is a general purposefinancial report which has been preparedon an accrual basis in accordance with theFinancial Management Act 1994, applicableAustralian Accounting Standards (AAS), whichincludes the Australian Accounting Standardsissued by the Australian Accounting StandardsBoard (AASB), AAS 29 Financial Reporting byGovernment Departments, interpretations andother mandatory professional requirements.The financial report also complies with relevantFinancial Reporting Directions (FRDs) issuedby the Department of Treasury and Finance,and relevant Standing Directions (SD)authorised by the Minister for Finance.The financial statements were authorisedfor issue by Claire Britchford, Chief FinanceOfficer, on 3 September 2008.(b) Basis of preparationThe financial report has been prepared inaccordance with the historical cost conventionexcept for the revaluation of certain non-currentassets. Cost is based on the fair values of theconsideration given in exchange for assets.In the application of AASs, managementis required to make judgments, estimatesand assumptions about carrying values ofassets and liabilities that are not readilyapparent from other sources. The estimatesand associated assumptions are based onhistorical experience and various other factorsthat are believed to be reasonable under thecircumstance and, the results of which, formthe basis of making judgments. Actual resultsmay differ from these estimates.The estimates and underlying assumptionsare reviewed on an ongoing basis. Revisionsto accounting estimates are recognised in theperiod in which the estimate is revised if therevision affects only that period or in the periodof the revision, and future periods if the revisionaffects both current and future periods.Accounting policies are selected and appliedin a manner which ensures that the resultingfinancial information satisfies the concepts ofrelevance and reliability, thereby ensuring thatthe substance of the underlying transactionsor other events is reported.The accounting policies set out below havebeen applied in preparing the financialstatements for the year ended 30 June 2008and the comparative information presentedfor the year ended 30 June 2007.The accrual basis of accounting has beenapplied.(c) Reporting entityThe financial report covers the Department ofEducation and Early Childhood Development asan individual reporting entity. The Departmentis a government department of the State ofVictoria, established pursuant to an ordermade by the Premier under the AdministrativeArrangements Act 1983. Its principal address is:Department of Education and Early ChildhoodDevelopment2 Treasury PlaceEast Melbourne Victoria 3002The Department is an administrative agencyacting on behalf of the Crown.The financial report includes all the controlledactivities of the Department Education andEarly Childhood Development.A description of the nature of the Department’soperations and its principal activities isincluded in the Report of Operations, whichdoes not form part of this financial report.The financial report includes all transactions ofthe Department and the State’s 1587 primary74DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsand secondary schools. All transactionsbetween the Department and schools havebeen eliminated as required by AustralianAccounting Standards.Administered resourcesThe Department administers but does notcontrol certain resources on behalf of theCrown. It is accountable for the transactionsinvolving those administered resources,but does not have the discretion to deploythe resources for achievement of theDepartment’s objectives. For these resources,the Department acts only on behalf of theCrown. Such administered transactionsinclude Commonwealth funds on-passed bythe Department to Victorian non-governmentschools. Administered resources are accountedfor using the accrual basis of accounting.Transactions and balances relating to theseadministered resources are not recognisedas Departmental revenues, expenses, assetsor liabilities within the body of the financialstatements but are disclosed in ‘AdministeredItems’ (see note 3). Except as otherwisedisclosed, administered items are accountedfor on the same basis and using the sameaccounting policies as for Departmental items.Specific financial disclosures related toadministered items can be found in notes 3and 5.Other trust activities on behalf ofparties external to the VictorianGovernmentThe Department has responsibility fortransactions and balances relating to trustfunds on behalf of third parties external tothe Victorian Government. The Departmenthas received monies in a trustee capacityfor various trusts including prizes andscholarships. Revenues, other income,expenses, assets and liabilities managedon behalf of third parties are not recognisedin these financial statements as they aremanaged on a fiduciary and custodial basis,and therefore not controlled by the Departmentor the Victorian Government.(d) Objectives and fundingThe objectives of the Department are toincrease participation, engagement andachievement in education and training, expandoptions and pathways for learners, strengthenthe quality of service delivery and ourresponsiveness to the community and industry,strengthen a culture of working together andmaintain sound financial management.The Department provides support and advisoryservices to the Minister for Education andthe Minister for Children and Early ChildhoodDevelopment, as well as a number of statutorybodies.The Department is predominantly funded byaccrual-based parliamentary appropriations forthe provision of outputs.(e) Outputs of the DepartmentInformation about the Department’s outputactivities and the expenses, income, assetsand liabilities which are reliably attributableto those output activities is set out in theDepartmental Outputs Schedule (note 2).Information about expenses, income, assetsand liabilities administered by the Departmentare given in the Schedule of AdministeredItems (note 3).As a consequence of machinery-ofgovernmentadministrative changesannounced on 2 August 2007, financialstatements of the Department reflect the actualperiod of responsibility for the outputs, beingfor the period 1 September 2007 to 30 June2008 for the received output Early ChildhoodDevelopment. Comparative amounts for theprior year have not been adjusted.Details of assets and liabilities transferredinto the Department of Education and EarlyChildhood Development and other informationrelating to machinery-of-government changesare reflected in note 6.Financial report75

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations(f) Events after reporting dateAssets, liabilities, income or expenses arisefrom past transactions or other past events.Where the transactions result from anagreement between the Department and otherparties, the transactions are only recognisedwhen the agreement is irrevocable at orbefore balance date. Adjustments are made toamounts recognised in the financial statementsfor events which occur after the reportingdate and before the date the statements areauthorised for issue, where those eventsprovide information about conditions whichexisted at the reporting date. Note disclosure ismade about events between the balance dateand the date the statements are authorisedfor issue where the events relate to conditionswhich arose after the reporting date and whichmay have a material impact on the results ofsubsequent years.(g) Goods and Services Tax(GST)Income, expenses and assets are recognisednet of the amount of associated GST, unlessthe GST incurred is not recoverable from thetaxation authority. In this case it is recognisedas part of the cost of acquisition of the assetor as part of the expense.Receivables and payables are stated inclusiveof the amount of GST receivable or payable.The net amount of GST recoverable from, orpayable to, the taxation authority is includedwith other receivables or payables in thebalance sheet.Cash flows are presented on a gross basis.The GST components of cash flows arisingfrom investing or financing activities which arerecoverable from, or payable to the taxationauthority, are presented as operating cash flow.(h) Income recognitionAll income received by the Departmentis generally required to be paid into theConsolidated Fund.Income becomes controlled and is recognisedby the Department when it is appropriatedfrom the Consolidated Fund by the VictorianParliament and applied to the purposesdefined under the relevant Appropriation Act.Additionally, the Department is permitted undersection 29 of the Financial Management Act1994 to have certain revenue annotated to theannual appropriation. The revenue, which formspart of a Section 29 agreement, is recognisedby the Department and the receipts are paidinto the Consolidated Fund as an administereditem. At the point of revenue recognition,Section 29 provides for an equivalent amountto be added to the annual appropriation. Inrespect to revenue from Commonwealth grantsand sales of non-current physical assets, theDepartment may be permitted under section 29of the Financial Management Act 1994 to havethis revenue initially paid into the ConsolidatedFund and an equivalent amount is provided byappropriation. In these instances the revenue‘received’ by the Department is administeredand disclosed in note 3.Revenue is recognised for each of theDepartment’s major activities as follows:Output appropriationsRevenue from the outputs the Departmentprovides to Government is recognised whenthose outputs have been delivered and therelevant Minister has certified delivery ofthose outputs in accordance with specifiedperformance criteria.Special appropriationsUnder section 34 of the Education Act1958, revenue related to Volunteer WorkersCompensation is recognised when the amountappropriated for that purpose is due andpayable by the Department.Under section 10 of the Financial ManagementAct 1994, revenue related to DroughtAssistance is recognised when the amountappropriated for that purpose is due andpayable by the Department.76DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsResources received free of chargeor for nominal considerationContributions of resources received freeof charge or for nominal considerationare recognised at their fair value whenthe transferee obtains control over them,irrespective of whether restrictions orconditions are imposed over the use ofthe contributions, unless received fromanother government department or agencyas a consequence of a restructuring ofadministrative arrangements. In which case,such transfer will be recognised at carryingvalue. Contributions in the form of servicesare only recognised when a fair value can bereliably determined and the services wouldhave been purchased if not donated.Other revenueAmounts disclosed as revenue are, whereapplicable, net of returns, allowances andduties and taxes. All amounts of revenue overwhich the Department does not have controlare disclosed as administered income in theschedule of administered income and expenses(see note 3). Revenue is recognised for each ofthe Department’s major activities as follows:Revenue from the provision of servicesRevenue from the provision of services isrecognised by reference to the stage ofcompletion of the contract. The revenue isrecognised when:• the amount of the revenue, stage ofcompletion and transaction costs incurredcan be reliably measured; and• it is probable that the economic benefitsassociated with the transaction will flow tothe entity or department.The stage of completion is measured byreference to labour hours incurred to date as apercentage of estimated total labour hours foreach contract.Revenue from sale of goodsRevenue from the sale of goods relates mainlyto revenue derived from schools and set outbelow are the policies adopted for recognition.Revenue from the sale of goods is recognisedby the Department when:• the significant risks and rewards ofownership of the goods have transferred tothe buyer;• the Department retains neither continuingmanagerial involvement to the degreeusually associated with ownership noreffective control over the goods sold;• the amount of revenue can be reliablymeasured;• it is probable that the economic benefitsassociated with the transaction will flow tothe Department; and• the costs incurred or to be incurred inrespect of the transaction can be measuredreliably.Interest revenueInterest revenue includes interest received onbank term deposits, interest from investments,and other interest received. Interest revenue isrecognised on a time-proportionate basis thattakes into account the effective yield on thefinancial asset.Other incomeOther income consists of gains/losses ondisposal of property, plant and equipment,disposal of investments and disposal ofbusiness. Any gain or loss on disposal isrecognised at the date control of the asset ispassed to the buyer and is determined afterdeducting from the proceeds the carrying valueof the asset at that time.Administered incomeTaxes, fines and regulatory feesThe Department does not gain control overassets arising from taxes, fines and regulatoryfees, therefore no income is recognised in theDepartment’s financial statements.The Department collects these amounts onbehalf of the Crown. Accordingly, the amountsare disclosed as income in the schedule ofAdministered Items (see note 3).Financial report77

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsCommonwealth grantsGrants payable by the CommonwealthGovernment are recognised as income whenthe Department gains control of the underlyingassets. Where such grants are payable intothe Consolidated Fund, they are reportedas administered income. For reciprocalgrants, the Department is deemed to haveassumed control when the performance hasoccurred under the grant. For non-reciprocalgrants, the Department is deemed to haveassumed control when the grant is receivedor receivable. Conditional grants may bereciprocal or non-reciprocal depending onthe terms of the grant. Commonwealth grantsare disclosed as income in the schedule ofadministered items (see note 3).(i) ExpensesGrants and other paymentsGrants and other payments to third partiesare recognised as an expense in the reportingperiod in which they are paid or payable. Theyinclude transactions such as grants, subsidiesand other transfer payments.Employee benefitsEmployee benefits expenses include allcosts related to employment including wagesand salaries, leave entitlements, redundancypayments and superannuation contributions.These are recognised when incurred, exceptfor contributions in respect of definedbenefit plans.made by the Department to the superannuationplan in respect to the current services of currentDepartment staff. Superannuation contributionsare made to the plans based on the relevantrules of each plan.The Department of Treasury and Financecentrally recognises the defined benefit liabilityor surplus of most Victorian governmentemployees in such funds.DepreciationDepreciation is provided on property, plantand equipment, including freehold buildingsbut excluding land. Depreciation is generallycalculated on a straight-line basis so as towrite off the net cost or other revalued amountof each asset over its expected useful lifeto its estimated residual value. Leaseholdimprovements are depreciated over the periodof the lease or estimated useful life, whicheveris the shorter, using the straight-line method.The estimated useful lives, residual values anddepreciation method are reviewed at the endof each annual reporting periodThe expected useful lives for the financialyears ended 30 June 2008 and 30 June 2007and depreciation rates are as follows:Useful lifeYears2008%2007%Buildings – permanent 60 1.7 1.7Buildings – relocatable andother Improvements40 2.5 2.5Plant and equipment 3–33 3–33 3–33SuperannuationDefined contribution plansContributions to defined contributionsuperannuation plans are expensed whenincurred.Defined benefit plansThe amount charged to the operatingstatement in respect of defined benefit plansuperannuation represents the contributionsWhere items of plant and equipment haveseparately identifiable components, whichare subject to regular replacement, thosecomponents are assigned useful lives distinctfrom the item of plant and equipment to whichthey relate.Leasehold improvements held at the reportingdate are being amortised over 10 years at arate of 10 per cent.78DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsAmortisationIntangible assets with finite useful livesare amortised on a systematic (typicallystraight-line) basis over the asset’s usefullife. Amortisation begins when the asset isavailable for use, that is, when it is in thelocation and condition necessary for it to becapable of operating in the manner intendedby management. The amortisation period andthe amortisation method for an intangible assetwith a finite useful life are reviewed at leastat the end of each annual reporting period.In addition, an assessment is made at eachreporting date to determine whether there areindicators that the intangible asset concernedis impaired. If so, the assets concerned aretested as to whether their carrying valueexceeds their recoverable amount.Intangible assets with indefinite useful lives arenot amortised, but are tested for impairmentannually or whenever there is an indicationthat the asset may be impaired. The usefullives of intangible assets that are not beingamortised are reviewed each period todetermine whether events and circumstancescontinue to support an indefinite useful lifeassessment for that asset.Resources provided free of chargeor for nominal considerationResources provided free of charge or fornominal consideration are recognised at theirfair value.Capital asset chargeThe capital asset charge represents theopportunity cost of capital invested in the noncurrentphysical assets used in the provisionof outputs. The charge is calculated on thebudgeted carrying amount of non-currentphysical assets.Finance costsFinance costs are recognised as expensesin the period in which they are incurred andinclude finance lease charges.Impairment of assetsGoodwill and intangible assets with indefiniteuseful lives (and intangible assets not yetavailable for use) are tested annually forimpairment (that is as to whether their carryingvalue exceeds their recoverable amount, andso requiring write-downs) and whenever thereis an indication that the asset may be impaired.All other assets are assessed annually forindications of impairment, except for financialassets and non-current assets classified asheld for sale.If there is an indication of impairment, theassets concerned are tested as to whethertheir carrying value exceeds their possiblerecoverable amount. Where an asset’scarrying value exceeds its recoverableamount, the difference is written off by acharge to the operating statement except tothe extent that the write-down can be debitedto an asset revaluation reserve amountapplicable to that class of asset.It is deemed that, in the event of the loss ofan asset, the future economic benefits arisingfrom the use of the asset will be replacedunless a specific decision to the contraryhas been made. The recoverable amountfor most assets is measured at the higher ofdepreciated replacement cost and fair valueless costs to sell. Recoverable amount forassets held primarily to generate net cashinflows is measured at the higher of thepresent value of future cash flows expectedto be obtained from the asset and fair valueless costs to sell.Supplies and servicesSupplies and services generally representcost of goods sold and the day-to-dayrunning costs, including school requisites andmaintenance costs, incurred in the normaloperations of the Department. These itemsare recognised as an expense in the reportingperiod in which they are incurred. The carryingamount of any inventories held for distributionis expensed when distributed.Financial report79

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations(j) AssetsAll non-current assets, including Crown Land,controlled by the Department are reported inthe balance sheet.Cash and cash equivalentsCash and cash equivalents comprise cashon hand and cash at bank, deposits at calland highly liquid investments with an originalmaturity of three months or less, which arereadily convertible to known amounts of cashand are subject to insignificant risk of changesin value (note 7). Amounts held by schoolsinclude term investments one year or less aretreated as cash and cash equivalents.For the cash flow statement presentationpurposes, cash and cash equivalents includesbank overdrafts, which are included as currentinterest bearing liabilities on the balance sheet.ReceivablesReceivables consist predominantly of debtorsin relation to goods and services, accruedinvestment income and GST input tax creditsrecoverable.Receivables are recognised initially atfair value and subsequently measured atamortised cost, using the effective interest ratemethod, less any accumulated impairment.A provision for doubtful receivables is madewhen there is objective evidence that the debtswill not be collected. Bad debts are written offwhen identified.Other financial assetsInvestments are recognised and de-recognisedon trade date where purchase or sale of aninvestment is under a contract whose termsrequire delivery of the investment withinthe timeframe established by the marketconcerned, and are initially measured at fairvalue, net of transaction costs.The Department classifies its otherinvestments in the following categories:financial assets at fair value through profitor loss, loans and receivables, held-tomaturityinvestments, and available-for-salefinancial assets. The classification dependson the purpose for which the investmentswere acquired. Management determinesthe classification of its investments at initialrecognition.The Department assesses at each balancesheet date whether a financial asset or groupof financial assets is impaired.Financial assets at fair value through profitor lossInvestments held for trading purposes areclassified as current assets and are statedat fair value, with any resultant gain or lossrecognised in profit or loss. The net gain orloss recognised in profit or loss incorporatesany dividend or interest earned on the financialasset. Fair value is determined in the mannerdescribed in note 19.Loans and receivablesTrade receivables, loans and other receivablesare recorded at amortised cost, using theeffective interest method, less impairment.The effective interest method is a method ofcalculating the amortised cost of a financialasset and of allocating interest income overthe relevant period. The effective interest rateis the rate that exactly discounts estimatedfuture cash receipts through the expected lifeof the financial asset, or, where appropriate,a shorter period.Held-to-maturity investmentsWhere the Department has the positive intentand ability to hold investments to maturity, theyare stated at amortised cost less impairmentlosses.Available-for-sale financial assetsOther investments held by the Department areclassified as being available-for-sale and arestated at fair value. Gains and losses arisingfrom changes in fair value are recogniseddirectly in equity until the investment isdisposed of or is determined to be impaired,80DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsat which time the cumulative gain or losspreviously recognised in equity is includedin profit or loss for the period. Fair value isdetermined in the manner described innote 19.Intangible assetsIntangible assets represent identifiable nonmonetaryassets without physical substance.Intangible assets are initially recognised atcost. Subsequently, intangible assets withfinite useful lives are carried at cost lessaccumulated amortisation and accumulatedimpairment losses. Costs incurred subsequentto initial acquisition are capitalised when itis expected that additional future economicbenefits will flow to the Department.Research and development costsExpenditure on research activities isrecognised as an expense in the period inwhich it is incurred. An internally generatedintangible asset arising from development(or from the development phase of an internalproject) is recognised if, and only if, all of thefollowing are demonstrated:(a) the technical feasibility of completing theintangible asset so that it will be availablefor use or sale(b) an intention to complete the intangibleasset and use or sell it(c) the ability to use or sell the intangibleasset(d) the intangible asset will generate probablefuture economic benefits(e) the availability of adequate technical,financial and other resources to completethe development and to use or sell theintangible asset(f) the ability to measure reliably theexpenditure attributable to the intangibleasset during its development.Where no internally generated intangible assetcan be recognised, development expenditureis recognised as an expense in the periodas incurred.Intangible assets are measured at cost lessaccumulated amortisation and impairment, andare amortised on a straight-line basis over theiruseful lives as follows:Capitalised software development costsProperty, plant and equipment3–5 yearsLand and buildings are measured initially atcost, then subsequently at fair value. Plant,equipment and vehicles are measured atcost less accumulated depreciation andimpairment.Assets such as Crown land and heritageasset are measured at fair value with regardto the property’s highest and best use afterdue consideration is made for any legal orconstructive restrictions imposed on theasset, public announcements or commitmentsmade in relation to the intended use ofthe asset.Theoretical opportunities that may be availablein relation to the asset are not taken intoaccount until it is virtually certain that therestrictions will no longer apply.Cultural depreciated assets and collections,heritage assets and other non-current physicalassets that the State intends to preservebecause of their unique historical, culturalor environmental attributes are measuredat the cost of replacing the asset less,where applicable, accumulated depreciationcalculated on the basis of such cost to reflectthe already consumed or expired futureeconomic benefits of the asset.Restrictive nature of cultural andheritage assets, Crown landand infrastructureDuring the reporting period, the Departmentmay hold cultural assets, heritage assets,Crown land and infrastructure.Such assets are deemed worthy of preservationbecause of the social rather than financialbenefits they provide to the community.Financial report81

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsThe nature of these assets means that thereare certain limitations and restrictions imposedon their use and/or disposal.Revaluations of non-current assetsNon-current physical assets measured at fairvalue are revalued in accordance with FRD103C. This revaluation process normallyoccurs every five years, based upon theasset’s Government Purpose Classification.Revaluation increments or decrements arisefrom difference between carrying value andfair value.Revaluation increments are credited directly toequity in the asset revaluation reserve, exceptthat, to the extent that an increment reverses arevaluation decrement in respect of that classof asset previously recognised as an expensein net result, the increment is recognised asrevenue in the net result.Revaluation decrements are recognisedimmediately as expenses in the net result,except that, to the extent that a credit balanceexists in the asset revaluation reserve inrespect of the same class of assets, theyare debited directly to the asset revaluationreserve.Revaluation increases and revaluationdecreases relating to individual assets withinan asset class are offset against one anotherwithin that class but are not offset in respectof assets in different classes.Revaluation reserves are not normallytransferred to accumulated surplus onde-recognition of the relevant asset.In accordance with FRD 103C all schoolssites were subject to a detailed valuationin the current financial year (2006–07:nil school sites as the Department reviewedthe land price index movement in relation toits properties and believed that there wereno material movement in those valuations)(refer note 12).Non-current assets classified as heldfor saleNon-current assets (and disposal group)classified as held for sale are measured atthe lower of carrying amount and fair valueless costs to sell, and are not subject todepreciation.Non-current assets and disposal groups areclassified as held for sale if their carryingamount will be recovered through a saletransaction rather than through continuing use.The condition is regarded as met only whenthe sale is highly probable and the assetssale (or disposal group sale) is expected tobe completed within one year from the dateof classification.Non-current assets constructed bythe DepartmentThe cost of non-current assets constructedby the Department includes the cost of allmaterials used in construction, direct labouron the project, and an appropriate proportionof variable and fixed overheads.LeasesLeases of property, plant and equipment areclassified as finance leases whenever theterms of the lease transfer substantially all therisks and rewards of ownership to the lessee.All other leases are classified as operatingleases.Department as lesseeFinance leases are recognised as assets andliabilities at amounts equal to the fair valueof the lease property or, if lower, the presentvalue of the minimum lease payment, eachdetermined at the inception of the lease. Thelease asset is depreciated over the shorterof the estimated useful life of the asset or theterm of the lease. Minimum lease paymentsare allocated between the principal componentof the lease liability, and the interest expense82DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationscalculated using the interest rate implicit in thelease, and charged directly to the operatingstatement. Contingent rentals associated withfinance leases are recognised as an expensein the period in which they are incurred.Operating lease payments, including anycontingent rentals, are recognised as anexpense in the operating statement on astraight-line basis over the lease term, exceptwhere another systematic basis is morerepresentative of the time pattern of thebenefits derived from the use of the leasedasset.The cost of leasehold improvements iscapitalised as an asset and depreciatedover the remaining term of the lease or theestimated useful life of the improvements,whichever is the shorter.(k) LiabilitiesPayablesPayables consist predominantly of creditors,employee benefits and other sundry liabilities.Payables are initially recognised at fair value,then subsequently carried at amortised costand represent liabilities for goods and servicesprovided to the Department prior to the end offinancial year that are unpaid, and arise whenthe Department becomes obliged to makefuture payments in respect of the purchaseof these goods and services. Fair value isdetermined in the manner described innote 13.ProvisionsProvisions are recognised when theDepartment has a present obligation, thefuture sacrifice of economic benefits isprobable, and the amount of the provisioncan be measured reliably.The amount recognised as a provision is thebest estimate of the consideration required tosettle the present obligation at reporting date,taking into account the risks and uncertaintiessurrounding the obligation. Where a provisionis measured using the cash flows estimated tosettle the present obligation, its carrying amountis the present value of those cash flows.Employee benefits(i) Salaries and wages, annual leave andsick leaveLiabilities for salaries and wages, includingnon-monetary benefits, annual leave andaccumulating sick leave expected to besettled within 12 months of the reporting dateare recognised in the provision for employeebenefits in respect of employee services upto the reporting date, classified as currentliabilities and measured at their nominalvalues.Those liabilities that are not expected tobe settled within 12 months are recognisedin the provision for employee benefits ascurrent liabilities, measured at present valueof the amounts expected to be paid when theliabilities are settled using the remunerationrate expected to apply at the time ofsettlement.(ii) Long service leaveLiability for long service leave (LSL) isrecognised in the provision for employeebenefits.Current liability – unconditional LSL isdisclosed as a current liability even wherethe Department does not expect to settlethe liability within 12 months because it willnot have the unconditional right to deferthe settlement of the entitlement should anemployee take leave within 12 months.The components of this current LSL liabilityare measured at:• present value – component that theDepartment does not expect to settlewithin 12 months; and• nominal value – component that theDepartment expects to settle within12 months.Financial report83

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNon-current liability – conditional LSL isdisclosed as a non-current liability. There isan unconditional right to defer the settlementof the entitlement until the employee hascompleted the requisite years of service.This non-current LSL liability is measured atpresent value.(iii) Employee benefits on-costsEmployee benefits on-costs (payroll tax,workers compensation, superannuation,annual leave and LSL accrued while on LSLtaken in service) are recognised separatelyunder provision.(l) CommitmentsCommitments include those operating, capitaland other outsourcing commitments arisingfrom non-cancellable contractual or statutorysources and are disclosed at their nominalvalue.(m) Contingent assets andcontingent liabilitiesContingent assets and contingent liabilities arenot recognised in the balance sheet, but aredisclosed by way of a note and, if quantifiable,are measured at nominal value.(n) EquityContributions by ownersAdditions to net assets which have beendesignated as contributions by owners arerecognised as contributed capital. Othertransfers that are in the nature of contributionsor distributions have also been designated ascontributions by owners.Transfers of net assets arising fromadministrative restructurings are treated asdistributions to or contributions by owners.(o) Cash flow statementFor the purposes of the cash flow statement,cash comprises cash on hand, cash at bank,bank overdrafts and deposits at call, andhighly liquid investments with short periods tomaturity that are readily convertible to cash onhand and are subject to an insignificant risk ofchanges in value.(p) Functional and presentationcurrencyThe functional currency of the Departmentis the Australian dollar, which has also beenidentified as the presentation currency of thisDepartment.(q) Rounding of amountsAmounts in the financial report have beenrounded to the nearest thousand dollars,unless otherwise stated.(r) Prospective accountingchangesGAAP–GFS convergenceThe AASB has recently approved AASB1049 Whole of Government and GeneralGovernment Sector Financial Reporting,which will apply to future financial reports ofthe Victorian general government sector. InOctober 2007, the AASB extended AASB1049 to also apply to financial reports of theWhole of Government economic entity. Thestandard, which will be applicable for annualreporting periods beginning on or after1 July 2008, merges Australian GenerallyAccepted Accounting Principles (GAAP)and Government Finance Statistics (GFS)reporting. It also includes additional disclosurerequirements. The effect of any changes torecognition or measurement requirements as aresult of this new standard is being evaluated.Service ConcessionsIn February 2007, the AASB approvedAustralian Interpretation 12 ServiceConcession Arrangements, applicable onlyto private sector operators from the 2008–0984DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsreporting period, and AASB 2007–2 that madeconsequential reference changes to affectedstandards. The AASB is still to considerhow public sector grantors should accountfor service concession arrangements, andhas appointed an advisory panel to makerecommendations.Due to the lack of applicable accountingguidance on the recognition and measurementby the State of assets arising from certainservice concession arrangements, there hasbeen no change in policy and those assets arecurrently not recognised.The impact of any changes that may berequired cannot be reliably estimated and isnot accounted for in the financial statements.Review of AAS 27, 29 and 31The AASB has made the followingpronouncements arising from its short-termreview of the AAS 27, AAS 29 and AAS 31:• AASB 1050 Administered Items• AASB 1051 Land Under Roads• AASB 1052 Disaggregated Disclosures• revised AASB 1004 Contributions; AASB2007–9 Amendments to AustralianAccounting Standards arising from theReview of AAS 27, AAS 29 and AAS 31• revised Interpretation 1038 Contributionsby Owners made to Wholly-Owned PublicSector Entities.These pronouncements are to be applicablefor the reporting period beginning on orafter 1 July 2008 with the exception ofAASB 2007–9, which is effective from1 January 2009. Broadly, the requirementstransferred from AAS 27, AAS 29 and AAS31 to the relevant new and existing topicbasedstandards are unchanged. Therefore,there will be no major changes to theDepartment’s financial report when thesestandards become applicable.Certain new accounting standards andinterpretations have been published that arenot mandatory for 30 June 2008 reportingperiod. The Department of Treasury andFinance assesses the impact of these newstandards and advises departments and otherentities of their applicability and early adoptionwhere applicable.As at 30 June 2008, the following standardsand interpretations (applicable to departments)had been issued but were not mandatory forfinancial years ending 30 June 2008. TheDepartment has not, and does not intend to,adopt these standards early.Financial report85

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsStandard / Interpretation Summary Applicable forannual reportingperiods beginningor ending onImpact onDepartmentalFinancialstatementsInterpretation 12 ServiceConcession Arrangements.AASB approved an Australian Interpretation 12,equivalent to IFRIC 12, applying to private sectoroperators, but explicitly excludes accounting for publicsector grantors.Beginning1 July 2008The impact of any changesthat may be required cannotbe reliably estimated and isnot disclosed in the financialreport.AASB 2007-2 Amendments to AustralianAccounting Standards arising from AASBInterpretation 12.Amendments arise from the release in February 2007 ofInterpretation 12 Service Concession Arrangements.Beginning1 July 2008As above.Revised AASB 1004 ContributionsAASB decided to relocate requirements on contributionsfrom AAS 27, 29 and 31, substantively unamended, intoAASB 1004 as part of its short-term review of AAS 27,AAS 29 and AAS 31.Beginning1 January 2008Impact expected to beinsignificant.AASB 1050 Administered ItemsAs part of the short-term review of AAS 27, AAS 29 andAAS 31, AASB decided to relocate the requirementsfor the disclosure of administered items from AAS 29,substantively unamended (with some exception as noted inAppendix A) into a new topic-based standard AASB 1050.Beginning1 July 2008Impact expected to beinsignificant.AASB 1050 Administered ItemsAs part of the short-term review of AAS 27, AAS 29 andAAS 31, AASB decided to relocate the requirementsfor the disclosure of administered items from AAS 29,substantively unamended (with some exception asnoted in Appendix A) into a new topic-based standardAASB 1050.Beginning1 July 2008Impact expected to beinsignificant.AASB 1051 Land Under RoadsThe new pronouncement AASB 1051 Land Under Roadsprovides the option to recognise or not recognise landunder roads acquired before the end of the first reportingperiod ending on or after 31 December 2007. Landunder roads acquired after 31 December 2007 shouldbe accounted for following requirements of AASB 116Property, Plant and Equipment.The State is yet to decide whether to change its policy.Until a conclusion is reached, the current default positionis that land under roads will not be recognised.Beginning1 July 2008Impact is being evaluated.AASB 1052 Disaggregated DisclosuresAASB decided to relocate requirements relating toreporting of disaggregated information from AAS 27 andAAS 29 into AASB 1052, a new topic-based standard,as part of its short-term review of AAS 27, AAS 29 andAAS 31.Beginning1 July 2008Impact expected to beinsignificant.AASB 2007-09 Amendments to AustralianAccounting Standards arising from the reviewof AAS 27, AAS 29 and AAS 31An accompanying amendment standard to amend existingaccounting standards as part of the short-term review ofAAS 27, AAS 29 and AAS 31 in December 2007.Beginning1 July 2008Impact expected to beinsignificant.Revised Interpretation 1038 Contributions byOwners made to Wholly-Owned Public SectorEntitiesEditorial amendments to Interpretation 1038 due tochanges to AASB 1004.Beginning1 July 2008Impact expected to beinsignificant.AASB 8 Operating Segments. Supersedes AASB 114 Segment Reporting. Beginning1 January 2009Not applicable.AASB 2007-3 Amendments to AustralianAccounting Standards arising from AASB 8[AASB 5, AASB 6, AASB 102, AASB 107,AASB 119, AASB 127, AASB 134, AASB 136,AASB 1023 and AASB 1038].An accompanying amending standard also introducedconsequential amendments into other standards.Beginning1 January 2009Impact expected to beinsignificant.AASB 2007-6 Amendments to AustralianAccounting Standards arising from AASB 123[AASB 1, AASB 101, AASB 107, AASB 111,AASB 116 & AASB 138 and Interpretations1 & 12]Option to expense borrowing cost related to a qualifyingasset has been removed. Entities are now required tocapitalise borrowing costs relevant to qualifying assets.Beginning1 January 2009All Australian governmentjurisdictions are currently stillactively pursuing an exemptionfor government fromcapitalising borrowing costs.AASB 2007-8 Amendments to AustralianAccounting Standards arising from AASB 101Editorial amendments to Australian Accounting Standardsto align with IFRS terminology.Beginning1 January 2009Impact expected to beinsignificant.86DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNote 2 Departmental (controlled) outputsA description of Departmental outputsperformed during the year ended 30 June2008, and the objectives of these outputs,are summarised below.Compulsory YearsThe outputs for compulsory years involve theprovision of education and associated servicesdesigned to improve the quality of studentlearning of those in Prep–Year 9 in governmentand non-government schools. It comprisestwo outputs: Early Years and Middle Years.Early YearsThis output involves provision of educationand other associated services designed toimprove the quality of student learning ofthose in Prep–Year 4 in government andnon-government schools. The Early Years ofschooling output is concerned with developingthe essential skills necessary for ongoingprogress in education and providing learningexperiences to engage young minds. Literacyand numeracy are foremost among the skillslearnt during these foundation years.Middle YearsThis output involves provision of education andother associated services designed to improvethe quality of student learning of those inYears 5–9 in government and non-governmentschools. The Middle Years of schooling outputrefers to a fundamental stage of learningwhere students growing from childhood toadolescence consolidate competency inliteracy and numeracy, and their physical,social, emotional and intellectual development.It is also a stage when they attain a greaterbreadth of knowledge and learning, includingextending their capacity for creative andcritical thinking.These outputs include the development andmanagement of education programsand curriculum.Later Years and YouthTransitionsThe Later Years and Youth Transitionsoutput involves provision of educationand other associated services designedto improve the quality of student learningof those in Years 10–12 in governmentand non-government schools. It alsocovers the provision of cross-sectoralservices to improve the transition of youngpeople to further education, trainingand employment.Services to StudentsThis consists of one output which coversstudent welfare and support, servicesto students with disabilities, educationmaintenance allowance, school start-uppayments and student transport. It involvesthe provision of:• education services relating to studentwelfare, including drug education andmental health issues• student support services in the areaof student wellbeing, including speechpathology, visiting teacher services forhearing, visually, health and physicallyimpaired students, curriculum servicesand alternative programs• education services for students withdisabilities in regular and specialistschools• the education maintenance allowanceto eligible parents of school students up tothe age of 16 years in government andnon-government schools• the school start-up payment to studentsin the preparatory year and Year 7• student conveyance allowances andthe transport of government andnon-government school students, includingthose attending specialist schools• school-focused youth services.Financial report87

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsPolicy and RegulationThe Policy and Regulation output involvesprovision of policy, administrative supportand strategy advice to the Ministers inrelation to their parliamentary and legislativeresponsibilities. It also covers provision ofadministrative support services for the variousstatutory authorities, including the VictorianCurriculum and Assessment Authority andVictorian Registration and QualificationsAuthority, regulation and advisory bodies andinternational education. It includes provisionof information services about educationto the community, including disseminationof information through public promotions,telephone services, publications andadvertising services. It covers:• regulatory activities such as schoolregistration• services for international education,including recruitment, assessment, studentplacement, marketing, organisation ofstudy tours, and international teacher andprincipal exchange programs.Adolescent Health Services(schools)This consists of one output and involvesthe provision of school nursing services forsecondary school-aged children.Early Childhood ServicesEarly Childhood Services outputs, throughthe funding of a range of services, providesupport to children in the early years, includingkindergarten and child-care, maternal andchild health, school nursing for primary schoolagedchildren, and early intervention servicesfor children with a disability.Child Health and SupportServicesCommunity-based maternal and child healthservices are available to all families withchildren aged 0 to 6 years, and school nursingservices for primary school-aged children, thatprovide developmental health surveillance,early intervention, parenting support andhealth education.Early Childhood Educationand CareThe provision of kindergarten and child-careservices includes the licensing and monitoringof centre-based children’s services, andspecialist services to improve access tokindergartens for disadvantaged children.88DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsDepartmental outputs schedule – controlled income and expensesfor the year ended 30 June 2008CompulsoryYears2008$’000Later Yearsand YouthTransitions2008$’000Services toStudents2008$’000Policy andRegulation2008$’000AdolescentHealthServices*2008$’000EarlyChildhoodServices*2008$’000Departmentaltotal2008$’000IncomeRevenue 566,234 125,424 3,710 2,077 – – 697,445Appropriations 4,063,173 1,360,773 718,165 36,312 7,978 241,730 6,428,131Resources received free of chargeor for nominal consideration– – – – – – –Total income 4,629,407 1,486,197 721,875 38,389 7,978 241,730 7,125,576ExpensesGrants and other payments (260,738) (203,383) (145,860) (13,666) – (20,911) (644,558)Employee benefits expense (2,774,548) (733,128) (452,299) (11,559) (7,295) (33,189) (4,012,018)Depreciation and amortisationexpense(159,662) (42,607) (14,026) (94) (16) (322) (216,726)Finance costs (306) (79) – (4) – – (390)Capital asset charge (478,090) (218,731) (30,274) (175) – – (727,270)Supplies and services (922,657) (283,753) (77,960) (12,659) (667) (187,308) (1,485,003)Resources provided free of chargeor for nominal consideration(4,784) (534) (1,121) (37) – – (6,476)Other expenses (14,852) (296) (335) (92) – – (15,574)Total expenses (4,615,637) (1,482,511) (721,875) (38,284) (7,978) (241,730) (7,108,015)Net result for period 13,770 3,686 – 105 – – 17,561¹ Includes income and expenditure for 10 months only due to machinery of government for the Office for Children transfer being effective 1 September 2007.Departmental outputs schedule – items of controlled income andexpense recognised directly in equity for the year ended 30 June 2008CompulsoryYears2008$’000Later Yearsand YouthTransitions2008$’000Services toStudents2008$’000Policy andRegulation2008$’000AdolescentHealthServices2008$’000EarlyChildhoodServices2008$’000Departmentaltotal2008$’000Gain/loss on property valuation 1,508,816 464,251 176,243 – – – 2,149,310Total 1,508,816 464,251 176,243 – – – 2,149,310Financial report89

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsDepartmental outputs schedule – controlled assets and liabilitiesas at 30 June 2008CompulsoryYears2008$’000Later Yearsand YouthTransitions2008$’000Services toStudents2008$’000Policy andRegulation2008$’000AdolescentHealthServices2008$’000EarlyChildhoodServices2008$’000Departmentaltotal2008$’000Assets and liabilitiesAssetsCurrent assets 1,124,384 346,888 132,501 6,448 – 1,711 1,611,932Non-current assets 7,984,859 2,636,469 925,010 237 – 63 11,546,638Total assets 9,109,243 2,983,357 1,057,511 6,685 – 1,774 13,158,570LiabilitiesCurrent liabilities 977,809 303,430 115,976 5,509 1,783 8,111 1,412,618Non-current liabilities 55,358 17,328 6,623 323 1,783 1,041 80,673Total liabilities 1,033,167 320,758 122,599 5,832 9,152 1,493,291Net assets/(liabilities) 8,076,076 2,662,599 934,912 853 (1,783) (7,378) 11,665,279Departmental outputs schedule – controlled income and expensesfor the year ended 30 June 2007CompulsoryYears2007$’000Post-compulsoryYears2007$’000Services toStudents2007$’000PortfolioManagementServices2007$’000Departmentaltotal2007$’000IncomeRevenue 386,308 269,670 1,837 10,114 667,929Appropriations 3,909,534 1,773,666 681,908 26,591 6,391,699Resources received free of charge or for nominal consideration – 2,214 – – 2,214Total revenue 4,295,842 2,045,550 683,745 36,705 7,061,842ExpensesGrants and other payments (243,114) (578,201) (108,374) (13,062) (942,751)Employee benefits expense (2,665,800) (770,927) (376,060) (10,973) (3,823,760)Depreciation and amortisation expense (156,022) (41,547) (13,678) (91) (211,338)Finance costs (297) (77) – (4) (378)Impairment of assets – – – – –Assumption of liabilities – – – – –Capital asset charge (396,164) (331,502) (34,187) (183) (762,036)Supplies and services (761,980) (299,644) (150,424) (12,071) (1,224,119)Resources provided free of charge or for nominal consideration (1,400) (154) (342) (11) (1,907)Other expenses (29,629) (579) (681) (183) (31,072)Total expenses (4,254,406) (2,022,631) (683,745) (36,578) (6,997,361)Net result for period 41,436 22,919 – 127 64,48190DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsDepartmental outputs schedule – controlled assets and liabilitiesas at 30 June 2007CompulsoryYears2007$’000Post-compulsoryYears2007$’000Services toStudents2007$’000PortfolioManagementServices2007$’000Departmentaltotal2007$’000Assets and liabilitiesAssetsCurrent assets 982,446 301,773 115,268 2,805 1,402,292Non-current assets 6,437,405 2,126,252 745,678 – 9,309,335Total assets 7,419,851 2,428,025 860,946 2,805 10,711,627LiabilitiesCurrent liabilities 878,746 269,958 103,182 4,901 1,256,788Non-current liabilities 48,936 15,036 5,747 280 69,999Total liabilities 927,682 284,994 108,929 5,181 1,326,786Net assets/(liabilities) 6,492,169 2,143,031 752,017 (2,376) 9,384,841Financial report91

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNote 3 Administered (non-controlled) itemsIn addition to the specific Departmentaloperations which are included in the operatingstatement, balance sheets, and cash flowstatement, the Department administers ormanages activities on behalf of the State. Thetransactions relating to these State activitiesare reported as administered items in this note.Administered transactions give rise to income,expenses, assets and liabilities and aredetermined on an accrual basis. Administeredrevenues include taxes, fees and fines andthe proceeds from the sale of administeredsurplus land and buildings. Administeredassets include government incomes earnedbut yet to be collected. Administered liabilitiesinclude government expenses incurred but yetto be paid.School education Early childhood services Departmental total2008$’0002007$’0002008$’0002007$’0002008$’0002007$’000Administered incomeCommonwealth on-passing tonon-government schools:General recurrent grant 1,502,952 1,412,816 7,420 – 1,502,952 1,412,816Other 145,094 137,709 – – 152,514 137,709Prizes and scholarships 251 236 – – 251 236Proceeds from sale of assets 9,558 23,127 – – 9,558 23,127Commonwealth general recurrent grantsgovernment schools438,140 417,502 – – 438,140 417,502Other grants 233,586 305,843 – – 233,586 305,843Total 2,329,581 2,297,233 7,420 – 2,337,001 2,297,233Administered expensesCommonwealth on-passing tonon-government schools:General recurrent grant 1,502,952 1,413,586 – – 1,502,952 1,413,586Other 145,388 138,502 – – 145,388 138,502Prizes and scholarships 230 370 – – 230 370Written down value of assets sold * 61,167 42,629 – – 61,167 42,629Amounts paid to Consolidated Fund ** 629,995 725,729 – – 629,995 725,729Total 2,339,732 2,320,816 – – 2,339,732 2,320,816Revenue less expenses (10,151) (23,583) 7,420 – (2,731) (23,583)* Revenue associated with the sale of these assets is recorded in the Financial Statements of the Department of Treasury and Finance.** This amount relates to Commonwealth and other monies received by the Department and paid to the Consolidated Fund.92DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsSchool education Early childhood services Departmental total2008$’0002007$’0002008$’0002007$’0002008$’0002007$’000Administered assetsReceivables 2,063 883 – – 2,063 883Investments 1,769 5,778 – – 1,769 5,778Prepayments 3,915 3,301 – – 3,915 3,301Property, plant and equipment – – – – – –Total 7,747 9,962 – – 7,747 9,963Administered liabilitiesCreditors and accruals 3,915 3,309 – – 3,915 3,309Total 3,915 3,309 – – 3,915 3,309Financial report93

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNote 4 Net result from continuing operations2008$’0002007$’000Income(a) Revenue from GovernmentOutput appropriations 6,422,264 6,391,449Special appropriations 5,867 250Total revenue received from Government 6,428,131 6,391,699(b) Other revenueSchools revenue 556,029 572,024Provision of services 2,306 1,135Interest 44,468 37,550Other revenue 94,642 57,220Total other revenue 697,445 667,929Expenses(c) Grants and other paymentsGrants to Victorian Curriculum and Assessment Authority 44,587 34,764Grants to Victorian Learning and Employment Skills Commission (i) – 337,255Grants to Victorian Registration and Qualifications Authority (VRQA) 3,978 3,082Grants to Victorian Institute of Teaching 1,257 1,226Grants to Adult Community and Further Education Board (ii) – 16,236Grants to non-government schools– primary 147,333 137,632– secondary 232,528 214,367– other 19,968 11,758Grants to external organisations 140,334 131,120Conveyance and Education Maintenance Allowance payments 54,573 55,311Total grants and other payments 644,558 942,751(i) Victorian Learning and Employment Skills Commission was transferred to Department of Innovation, Industry and Regional Development (DIIRD)in machinery-of-government changes of December 2006.(ii) Adult Community and Further Education Board was transferred to Department of Planning and Community Development in machinery-of-governmentchanges of December 2006.2008$’0002007$’000(d)Employee benefits*Salary and wages – Departmental employees 3,032,201 2,896,173Salary and wages – staff employed by school councils 213,031 187,358Superannuation 337,616 330,882Annual leave and long service leave expense 207,379 187,927Other on-costs (fringe benefits tax, payroll tax and workcover levy) 221,791 221,420Total employee benefits 4,012,018 3,823,760* The new Enterprise Bargaining Agreement (EBA) for teachers was effective as of 11 May 2008.94DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations2008$’0002007$’000(e)Depreciation and amortisationDepreciationBuildings 135,360 109,145Plant and equipment 69,860 98,329205,220 207,474AmortisationPlant and leasehold improvements – 1,137Software 11,506 2,72711,506 3,864Total depreciation and amortisation 216,726 211,338(f) Supplies and servicesAdministration 153,433 140,615Maintenance 506,425 446,157School requisites 600,300 566,465Service agreement payments 178,330 –Other 17,500 34,4071,455,988 1,187,644Rental expense relating to operating leasesMinimum lease payments 29,015 36,475Total supplies and services 1,485,003 1,224,119(g)Resources provided free of charge or for nominal considerationVictorian Curriculum and Assessment Authority (VCAA)Rent provided free of charge at 189 Urquhart Street, Coburg and41 St Andrews Place, East Melbourne, (2007: 1 Railway Parade, Camberwelland 41 St Andrews Place, East Melbourne)Victorian Registration and Qualifications Authority (VRQA)Rent provided free of charge at Level 6, 35 Spring Street, Melbourne,(2007: Level 2, 33 St Andrews Place, East Melbourne)Office for ChildrenEmployee entiltlements1,512 1,827216 804,748 –Total resources provided free of charge or for nominal consideration 6,476 1,907(h)Finance costsFinance lease costs 390 378(i)Other expenses(Gain) / loss on disposal of property, plant and equipmentConsideration from disposals (2,497) (1,689)Carrying amount of assets disposed 16,690 5,49814,193 3,809OtherBad and doubtful debts – debtors (6) 220Write-off of purchase cost of assets under $5,000 (iii) – 25,913Other expenses 1,387 1,130Total other expenses 15,574 31,072(iii) During 2006–07 the Department reassessed the threshold for capitalisation of certain items of plant and equipment used in schools in order to beconsistent with the treatment of other plant and equipment assets held by the Department. The threshold for capitalisation was raised from $1000 to$5000. The net financial effect of this reassessment was an expense for the Department of $90 million. $25.9 million of this was recorded in the operatingstatement for assets purchased in the current financial year and $64.1 million in the Statement of recognised income and expense for assets purchasedprior to 1 July 2006.Financial report95

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNote 5 Summary of compliance with annual parliamentary and special appropriations(a) Summary of compliance with annual parliamentary appropriationsThe following table discloses the details of the various parliamentaryappropriations received by the Department for the year. In accordancewith accrual output-based management procedures, ‘Provision for outputs’and ‘Additions to net assets’ are disclosed as ‘controlled’ activities of theDepartment. Administered transactions are those that are undertaken onbehalf of the State over which the Department has no control or discretion.Appropriation Act Financial Management Act 1994Annual appropriationAdvance fromTreasurerSection 3(2) Section 29 Section 30 Section 32Section 35advancesTotal ParliamentaryauthorityAppropriationsapplied$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000Variance2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007ControlledProvision for outputs 6,373,695 6,836,695 7,172 – 39,016 – 120,981 99,109 (55,852) – 35,400 7,866 – – 6,520,412 6,943,670 6,422,264 6,391,449 98,148 552,221Additions to net assets 104,668 100,207 – – – – 121,076 220,826 55,852 – 58,530 – 2,000 – 342,126 321,033 256,475 254,014 85,651 67,019AdministeredPayments made onbehalf of the State– – – – – – – – – – – – – – – – – – – –Total 6,478,363 6,936,902 7,172 – 39,016 – 242,057 319,935 – – 93,930 7,866 2,000 – 6,862,538 7,264,703 6,678,739 6,645,463 183,799 619,240The provision for outputs variance of $98.148 million is due to:– 12 months of annual appropriation for Early Childhood Developmenttransferred from the Department of Human Services to the Departmentof Education and Early Childhood Development on 1 September2007 being recognised, of which $39.646 million was applied by theDepartment of Human Services in July and August– carryover of provision of outputs appropriation for projects totalling$58.502 million.The additions to net assets variance of $85.651 million are due to:– carryover of additions to net asset base appropriation for projectstotalling $45.005 million– appropriation returned to the Consolidated Fund as there was sufficientdepreciation equivalent funding in the Department’s State AdministrativeUnit of $26.908 million– appropriation for capital programs re-phased to 2009–10 financial yearof $13.738 million.96DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations(b) Summary of compliance with special appropriationsAuthority Purpose Appropriations applied2008$’0002007$’000ControlledSection 5.6.8 of the Education and Training Reform Act 2006 Volunteers workers compensation 250 250Section 10 of the Financial Management Act 1994 Drought assistance 5,617 –Total 5,867 250Note 6 Restructuring of administrative arrangementsIn August 2007, the Government issued anadministrative order restructuring certain ofits activities via machinery-of-governmentchanges. As part of the machinery-ofgovernmentrestructure the Department ofEducation assumed responsibility for the Officefor Children output from the Department ofHuman Services (DHS).The Department has recognised appropriationincome of $247.9 million (which includes S29income of $5.8 million) and expenses of$242.6 million during the reporting period inrespect of the Office for Children.The revenue and expenses for the Office forChildren output for the reporting period areas follows:Office for Children outputDepartment ofEducation and EarlyChildhood Development(transferee)Department ofHuman Services(transferor)Total$’000 $’000 $’000Department’s revenue and expensesIncome 247,872 42,900 290,772Expenses (242,635) (43,643) (286,278)AdministeredIncome 7,420 – 7,420Expenses – – –The net liabilities assumed by the Departmentfor the Office for Children output as a result ofthe administrative restructure are recognisedin the balance sheet at the carrying amount ofthose assets and liabilities in the transferor’s(Department of Human Services) balancesheet immediately prior to the transfer.The net liability transfer was treated as aresource free of charge by the Crown incompliance with the accounting requirementsof AASB Interpretation 1038 Contributionsby Owners Made to Wholly Owned PublicSector Entities and FRD 2A Contributionsby Owners (refer note 1(n)). An expensehas been recognised by the Department inrespect of the net liability transferred from theDepartment of Human Services.In respect of the activities assumed, thefollowing assets and liabilities were recognisedat the date of transfer:Financial report97

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsOffice for Children outputAssetsDHS$’000Total$’000Cash 4,000 4,000Equipment 345 345Motor vehicles under VicFleet 1,081 1,081LiabilitiesEmployee provisions (8,748) (8,748)Interest-bearing liabilities (1,094) (1,094)Net liabilities recognised at the date of transfer (4,416) (4,416)Note 7 Cash and cash equivalents2008$’0002007$’000Amounts held by schools 667,428 641,984Departmental operating bank accounts 99,176 63,887Other bank accounts 3,339 (6,264)Total cash 769,943 699,607The figures above are reconciled to cash at the end of the financial yearas shown in the cash flow statement as follows:Balances as above 769,943 699,607Balances per cash flow statement 769,943 699,607Cash at BankDue to the State of Victoria’s investmentpolicy and government funding arrangements,government departments generally do nothold a large cash reserve in their bankaccounts. The Departmental operating bankaccounts hold funds on behalf of trusts.Cash received by a department from thegeneration of revenue is generally paid intothe State’s bank account, known as thePublic Account. Similarly, any Departmentalexpenditure, including those payments forgoods and services to the Department’ssuppliers and creditors, are made via thePublic Account. The process is such that,the Public Account would remit to theDepartment the cash required to cover itstransactions. This remittance by the PublicAccount occurs upon the electronic transfer offunds and the presentation of the cheques bythe Department’s suppliers or creditors.The cash at bank held by schools includesterm investments of one year duration or less.The 2008 balance of $124,579,256 is reportedas cash or cash equivalents. The 2007balance was $109,035,183.Any term investments with a duration of morethan one year are treated as other financialassets. The $2008 balance was $24,771,505compared with $14,262,636 in 2007.98DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNote 8 Receivables2008$’0002007$’000CurrentAmounts owing from Victorian Government (i) 658,738 579,867GST receivables 25,273 22,361Schools’ receivables 71,415 64,238Other debtors (ii) 23,787 15,433779,213 681,899Allowance for doubtful debts (ii) (8,736) (7,423)Total current receivables 770,477 674,476Non-currentAmounts owing from Victorian Government (i) 47,814 36,905Other debtors (ii) 452 42348,266 37,328Allowance for doubtful debts (ii) (72) (107)Total non-current receivables 48,194 37,221Aggregate carrying amount of receivablesCurrent 770,477 674,476Non-current 48,194 37,221Total aggregate carrying amount of receivables 818,671 711,697(i) The amounts recognised from Victorian Government represent funding for all commitments incurred through the appropriations and are drawn from theConsolidated Fund as the commitments fall due.(ii) The average credit period on sales of goods is 30 days. No interest is charged on other receivables for the first 30 days from the date of the invoice.A provision has been made for estimated irrecoverable amounts from the sale of goods, salary overpayments and Workcover debtors, determined byreference to past default experience. The $577,000 reduction was recognised in the operating result for the current financial year.(a) Movement in the allowance for doubtful debts2008$’0002007$’000Balance at beginning of the year (7,530) (3,550)Amounts written off during the yearAmounts recovered during the yearIncrease/(decrease) in allowance recognised in profit or loss (577) (3,980)Balance at end of the year (8,107) (7,530)(b) Ageing analysis ofreceivablesRefer to Table 19.2 in note 19 for the ageinganalysis of receivables.(c) Nature and extent of riskarising from receivablesRefer to note 19 for the nature and extent ofcredit risk arising from receivables.Financial report99

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNote 9 Other assets2008$’0002007$’000PrepaymentsOperating expenses 32,888 4,336Total prepayments 32,888 4,336Note 10 Non-current assets classified as held for sale2008$’0002007$’000Buildings 6,731 7,516Land 31,427 16,157Plant and equipment 466 200Total non-current assets classified as held for sale 38,624 23,873Note 11 Intangible assets2008$’0002007$’000Software (at cost) 13,283 12,891Less: accumulated amortisation (13,283) (9,984)Total intangible assets – 2,907Movement in reconciliation $’000Carrying amount at 1 July 2006 2,515Additions 5,241Amortisation expense (i) (2,727)Disposals (2,122)Carrying amount at 30 June 2007 2,907Additions 8,745Amortisation expense (i) (11,506)Disposals (146)Carrying amount at 30 June 2008 –(i) Amortisation expense is included in the line item ‘depreciation and amortisation’ in the operating statement.100DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNote 12 Property, plant and equipment– Education Purpose Group (i) 2008$’0002007$’000LandCrown landAt cost 71,633 127,454At independent valuation 6,342,429 4,417,462Total land 6,414,062 4,544,916BuildingsAt cost – 408,344Less accumulated depreciation – (10,142)– 398,202At valuation 4,271,979 3,851,674Less accumulated depreciation (835) (235,460)4,271,144 3,616,214Total buildings 4,271,979 4,260,018Less total accumulated depreciation (835) (245,602)Total written down value of buildings 4,271,144 4,014,416Leasehold improvements – at cost 885 842Less accumulated depreciation – –885 842Total land and buildings 10,686,091 8,560,174Plant and equipmentAt cost 662,056 611,294Less accumulated depreciation (484,814) (450,073)177,241 161,221Plant and equipment under finance lease 8,379 7,397Less accumulated amortisation (2,325) (1,617)6,054 5,780Total plant and equipment 183,295 167,001Work in progressBuildings 546,640 498,854Plant and equipment 57,646 28,912604,286 527,766Total property, plant and equipment 11,473,672 9,254,941(i) Property, plant and equipment are classified primarily by the ‘purpose’ for which the assets are used, according to one of six Purpose Groups based uponGovernment Purpose Classifications (GPC). All assets within a Purpose Group are further sub-categorised according to the asset’s nature (i.e. buildings, plant andequipment, etc), with each sub-category being classified as a separate class of asset for financial reporting purposes.Financial report101

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsValuations of land and buildingsAn independent valuation of the Department’sland and buildings was performed by theVictorian Valuer-General to determine the fairvalue of the land and buildings. The valuation,which conforms to Australian ValuationStandards, was determined by reference to theamounts for which assets could be exchangedbetween knowledgeable willing parties in anarm’s length transaction. The valuation wasbased on independent assessments. Theeffective date of the valuation is 30 June 2008.The basis of valuation of land and buildingsadopted for those assets revalued as at30 June 2007 is fair value, being thedepreciated current replacement cost of theassets’ remaining future economic benefits.ReconciliationsReconciliations of the carrying amounts ofeach class of property, plant and equipmentat the beginning and end of the financial yearare set out below:2008 Land BuildingsLeaseholdimprovementsPlant andequipmentWork inprogressTotal$’000 $’000 $’000 $’000 $’000 $’000Opening balance 4,544,916 4,014,416 842 167,001 527,766 9,254,941Additions 56,384 – 153 103,000 290,025 449,562Impairment adjustment – (82,312) – – – (82,312)Transfers to completed assets – 213,505 – – (213,505) –Disposals (3,906) (57,261) (110) (16,580) – (77,857)Assets written off as a result of thechange in accounting policy– – – – – –Revaluation increments 1,831,939 317,371 – – – 2,149,310Re-classified as held for sale (15,271) 785 – (266) – (14,752)Depreciation/amortisation – (135,360) – (69,861) – (205,221)Closing balance 6,414,062 4,271,144 885 183,294 604,286 11,473,6712007 Land BuildingsLeaseholdimprovementsPlant andequipmentWork inprogressTotal$’000 $’000 $’000 $’000 $’000 $’000Opening balance 4,486,507 4,050,631 7,240 240,205 373,060 9,157,643Additions 68,472 132,102 34 95,591 286,578 582,777Impairment adjustment – (33,188) – – – (33,188)Transfers to completed assets – – – – (131,872) (131,872)Disposals (6,743) (24,621) (5,295) (5,498) – (42,157)Assets written off as a result of thechange in accounting policy– – – (64,768) – (64,768)Revaluation increments – 87 – – – 87Re-classified as held for sale (3,320) (1,450) – (200) – (4,970)Depreciation/amortisation – (109,145) (1,137) (98,329) – (208,611)Closing balance 4,544,916 4,014,416 842 167,001 527,766 9,254,941102DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNote 13 Payables2008$’0002007$’000Salaries, wages and on-costs 205,449 99,541Accrued payments to non-government schools 104,673 90,911Accrued grants and transfer payments 7,967 6,035Other accruals 1,623 –Schools’ creditors 12,556 10,493Capital expenditure 40,774 62,028Operating expenditure 65,530 50,152Advance from public account 14,496 13,025453,068 332,185(a) Maturity analysis of payablesRefer to Table 19.2 in note 19 for the ageinganalysis of payables.(b) Nature and extent of riskarising from payablesRefer to note 19 for the nature and extent ofrisks arising from payables.Note 14 Interest-bearing liabilities2008$’0002007$’000SecuredAggregate carrying amount of interest-bearing liabilitiesCurrent 3,694 3,034Non-current 2,859 3,094Total aggregate carrying amount of provisions 6,553 6,128Lease liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of default.2008$’0002007$’000Finance leaseMotor vehicles under finance lease 6,054 5,780Total non-current assets pledged as security 6,054 5,780(a) Maturity analysis of interestbearingliabilitiesRefer to Table 19.2 in note 19 for theageing analysis of interest-bearing liabilities.Financial report103

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations(b) Nature and extent of riskarising from interest-bearingliabilitiesRefer to note 19 for the nature and extent ofrisks arising from interest-bearing liabilities.(c) Defaults and breachesDuring the current and prior year, there wereno defaults or breaches of any of the loans.Note 15 Provisions2008$’0002007$’000CurrentEmployee benefits (i) (note 15(a) and (b))Unconditional and expected to be settled within 12 months (ii) 146,005 139,343Unconditional and expected to be settled after 12 months (iii) 606,102 585,644Provisions related to employee benefit oncost 752,107 724,987Unconditional and expected to be settled within 12 months (ii) 28,547 27,681Unconditional and expected to be settled after 12 months (iii) 124,190 122,048152,737 149,729Legal expenses 221 221Sabbatical leave 1,430 1,430Total current 906,495 876,367Non-currentEmployee benefits (i) 64,581 55,367Provisions related to employee benefit on-costs 13,233 11,538Total non-current 77,814 66,905Total provision 984,309 943,272(a) Employee benefits and related on-costsCurrent employee benefitsAnnual leave entitlements 58,789 53,233Unconditional long service leave entitlements 686,634 665,236Others 6,684 6,518752,107 724,987Non-current employee benefitsConditional long service leave entitlements 64,581 55,367Total employee benefits 816,688 780,354Current on-costs 152,737 149,730Non-current on-costs 13,233 11,538Total on-costs 165,970 161,268Total employee benefits and related on-costs 982,658 941,622(i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including on-costs.(ii) The amounts disclosed are nominal amounts.(iii) The amounts disclosed are discounted to present values.104DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations(b) Movements in provisionsMovements in each class of provision duringthe financial year, other than employeebenefits, are set out below:On-costs$’000Legal expenses$’000Sabbatical leave$’000Total$’000Carrying amount at start of year 161,268 221 1,430 162,919Additional provisions recognised 41,362 – – 41,362Payments and other sacrifices of economic benefits (36,660) – – (36,660)Carrying amount at end of year 165,970 221 1,430 167,621Note 16 Superannuation2008Rate2007RateSuperannuationName of schemeState Superannuation Scheme – Revised Scheme 17.3% 17.0%State Superannuation Scheme – New Scheme – 0% contributor 7.3% 7.5%State Superannuation Scheme – New Scheme – 3% contributor 8.6% 8.8%State Superannuation Scheme – New Scheme – 5% contributor 9.4% 9.7%State Superannuation Scheme – New Scheme – 7% contributor 10.2% 10.5%VicSuper* 9.0% 9.0%State Employees Retirement Benefit Scheme 12.8% 12.8%Other private schemes** n/a n/a* Under the VicSuper Scheme, employer contributions are payable only if the member is paid more than $450 in gross salary in a particular month. This is consistentwith Commonwealth Superannuation Guarantee legislation.** The rate for other private schemes is not disclosed as these payments are predominantly the result of performance-related payments, which vary by individual.Government employees’ superannuation fundsNo liability is recognised in the balance sheetfor the Department’s share of the State’sunfunded superannuation liability. TheState’s unfunded superannuation liability hasbeen reflected in the financial statements ofthe Department of Treasury and Finance.However, superannuation contributions forthe reporting period are included as part ofsalaries and associated costs in the operatingstatement of the Department.The name and details of the major employeesuperannuation funds and contributions madeby the Department are as follows:Financial report105

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsFundsContributionfor the yearContributionfor the yearContributionoutstanding atyear endContributionsoutstanding atyear end2008$’0002007$’0002008$’0002007$’000State Superannuation Schemes(defined benefit scheme)VicSuper(accumulation scheme)State Employees Retirement Benefits Scheme(defined benefit scheme)157,226 166,559 7,232 5,938143,240 131,600 6,589 4,6922,459 3,406 113 866Other private schemes 10,171 6,571 468 234Total 313,096 308,136 14,402 11,730The bases for contributions are determined bythe various schemes.The above amounts are measured as at30 June of each year. Employer contributionsrelate to the years ended 30 June.All employees of the Department are entitled tobenefits on retirement, disability or death fromthe above superannuation schemes.Note 17 Other current liabilities2008$’0002007$’000Unearned revenue 49,361 45,202Total other current liabilities 49,361 45,202106DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNote 18 Equity and movements in equity2008$’0002007$’000(a) Contributions by ownersBalance as at beginning of financial year period 5,046,130 4,823,251Capital contribution by Victorian State Government 257,046 254,013Capital contribution by other entities – 230Equity transfers to administered entity (61,166) (31,364)Balance at end of financial year 5,242,010 5,046,130(b) ReservesAsset revaluation 5,083,697 3,016,6995,083,697 3,016,699MovementsAsset revaluation reserveBalance at beginning of financial year 3,016,699 3,049,800Revaluation increment of land during the year 1,831,939 –Revaluation increment of buildings during the year 317,371 87Impairment adjustment to building values (82,312) (33,188)Balance at end of financial year 5,083,697 3,016,699The asset revaluation reserves are used to record increments and decrementson the revaluation of non-current assets, as described in note 1(j).(c) Accumulated surplusAccumulated surplus as at beginning of reporting period 1,322,011 1,230,505Changes in accounting policies – 27,025Net result for the financial year 17,561 64,481Balance at end of financial year 1,339,572 1,322,011Total equity at the end of the financial year 11,665,279 9,384,840Financial report107

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNote 19 Financial instruments(a) Significant accounting policiesDetails of the significant accounting policiesand methods adopted, including the criteriafor recognition, the basis of measurementand the basis on which income and expensesare recognised, in respect of each class offinancial asset, financial liability and equityinstrument are disclosed in note 1 to thefinancial statements.(b) Table 19.1: Categorisation of financial instrumentsCarrying amountNote Category 2008$’0002007$’000Financial assetsCash and cash equivalents 7 n/a 769,943 699,607Receivables (i) 8 Loans and receivables (at amortised cost) 82,700 60,463Other financial assets Held-to-maturity investments (at amortised cost) 24,772 121,058Financial liabilitiesPayables 13 Financial liabilities measured at amortised cost 453,068 332,185Interest-bearing liabilities 14 Financial liabilities measured at amortised cost 6,553 6,129(i) The amount of receivables disclosed here excludes statutory receivables (i.e. amounts owing from Victorian Government and GST input tax credit recoverable).(c) Credit riskCredit risk arises when there is the possibilityof the Department’s debtors defaulting on theircontractual obligations resulting in financialloss to the Department. The Departmentmeasures credit risk on a fair value basis andmonitors risk on a regular basis.Credit risk associated with the Department’sfinancial assets is minimal because themain debtor is the Victorian Government.For debtors other than government, it is theDepartment’s policy to only deal with entitieswith high credit ratings and to obtain sufficientcollateral or credit enhancements whereappropriate. Financial assets obtained bythe Department are normally fixed interestin nature.The Department does not engage in anyhedging for its financial assets.Financial assets that are either past due orimpairedAs at the reporting date, there is no event toindicate that any of the financial assets areimpaired.108DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations(d) Interest rate riskThe Department’s exposure to interest rate riskand the effective weighted average interest rateby maturity periods are set out in Table 19.2.For interest rates applicable to each class ofasset or liability refer to individual notes to thefinancial statements.Table 19.2 discloses the ageing only offinancial assets that are past due but notimpaired and the contractual maturity analysisfor the Department’s financial liabilities.Exposure arises predominantly from assetsbearing variable interest rates as theDepartment intends to hold fixed rate assetsto maturity.Table 19.2 Interest rate exposure and ageing analysis of financial assets and liabilities (i)2008 Notes WeightedaverageinterestrateFinancial assetsCarryingamountFixedinterestrateInterest rate exposureVariableinterestrateNoninterestbearingNotpast dueand notimpairedLessthan1 monthPast due but not impaired1–3months3 months– 1 year1–5yearsImpairedfinancialassets% $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000Cash and cashequivalents – DepartmentCash and cashequivalents – schools7 102,515 – – 102,515 102,515 – – – – –7 6.26% 667,428 124,579 542,849 667,428 – – – –Receivables 8 82,700 – 82,700 82,011 126 – 559 4 –Other financial assets 5.55% 24,772 21,222 3,177 373 24,772 – – – – –877,415 145,801 546,026 185,588 876,726 126 – 559 – –Financial liabilitiesLessthan1 monthMaturity dates1–3months3 months– 1 year1–5years$’000 $’000 $’000 $’000Payables 13 453,068 – 453,068 – – – –Finance lease liabilities 14 6.94% 6,553 6,553 – – 6,553 1,039 665 2,448 2,401459,621 6,553 – 453,068 6,553 1,039 665 2,448 2,401Net financial assets(liabilities)417,794 139,248 546,026 (267,480) 870,173(i) Ageing analysis of financial assets must exclude the types of statutory receivables (e.g. amounts owing from Victorian Government and GST input tax credit recoverable).Financial report109

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsTable 19.2 (cont.)Interest rate exposureMaturity (ii)2007 Notes Weightedaverageinterest rateCarryingamountFixedinterest rateVariableinterest rateNon-interestbearing1 yearor less1–5 years$’000 $’000 $’000 $’000 $’000 $’000Financial assets – –Cash and cashequivalents – DepartmentCash and cashequivalents – schools7 57,623 – – 57,623 – –7 5.33% 641,984 109,035 532,949 – 109,035 –Receivables 8 60,463 – – 60,463 – –Other financial assets 4.49% 14,263 12,023 1,880 360 – 12,023774,333 121,058 534,829 118,446 109,035 12,023Financial liabilitiesPayables 13 332,184 – – 332,184 – –Finance lease liabilities 14 6.6% 6,129 6,129 – – 3,034 3,095338,313 6,129 – 332,184 3,034 3,095Net financial assets(liabilities)436,020 114,929 534,829 (213,738) 106,001 8,928(ii) The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities(e) Liquidity riskLiquidity risk arises when the Department isunable to meet its financial obligations as theyfall due. The Department operates under theGovernment fair payments policy of settlingfinancial obligations within 30 days and in theevent of a dispute, makes payments within30 days from the date of resolution.(f) Market riskThe Department’s exposure to market riskis primarily through interest rate risk with noexposure to foreign currency and other pricerisks. Objectives, policies and processes usedto manage each of these risks are disclosedin the paragraphs below.Foreign currency riskThe Department’s has no exposure to foreigncurrency risk.Interest rate riskExposure to interest rate risk is insignificant andmight arise primarily through the Department’sinterest-bearing liabilities. Minimisation of riskis achieved by mainly undertaking fixed rateor non-interest bearing financial instruments.For financial liabilities, the Department mainlyundertakes financial liabilities with relativelyeven maturity profiles. The Department’sinterest-bearing liabilities are managed by theTreasury Bank of Victoria and any movement ininterest rates is monitored on a daily basis.The Department’s exposure to interest rate riskis set out in the Table 19.3.Sensitivity disclosure analysisTaking into account past performance, futureexpectations, economic forecasts, andmanagement’s knowledge and experience of thefinancial markets, the Department believes the110DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsfollowing movements are ‘reasonably possible’over the next 12 months (base rates aresourced from the Reserve Bank of Australia):• A parallel shift of +0.5 per cent and–0.5 per cent in market interest rates (AUD)from year-end rates of 6.4 per cent.The Victorian Department of Treasury andFinance has obtained expert advice on theapplicability of the AASB 7 paragraph 40sensitivity analysis disclosure in relation toVicFleet financial leases. The expert adviceis that, because the interest rates applied tothe vehicle leases are not variable or floatingin nature, the vehicle leases are not subjectto the sensivity analysis prescribed under thisstandard. The adjustment to the interest ratethat is made upon the settlement of the VicFleetleases is regarded as nothing more than arecovery by the lessor of their borrowing costs.Hence the underlying interest rates in theseleases are based on fixed interest rate exposure.Table 19.3 discloses the impact on netoperating result and equity of interest rate riskfor financial instruments held by the Departmentat year-end as presented to key managementpersonnel, if the above movement was to occur.Table 19.3 Market risk exposure–0.5%(50 basis points)Interest rate risk0.5%(50 basis points)CarryingNet result Equity Net result Equity2008amount$’000 $’000 $’000 $’000Financial assetsCash and cash equivalents (iii) 769,943 2,714 2,714 (2,714) (2,714)Receivables 818,671 – – – –Other financial assets 24,772 – – – –Financial liabilitiesPayables 453,070 – – – –Interest-bearing liabilities (vi) 6,553 – – – –Total increase/(decrease) 1153,763 2,714 2,714 (2,714) (2,714)(iii) Sensitivity of cash and cash equivalents to a +0.5% movement in rates: [$542,848,516.40 x 0.069] - [$542,848,516.40 x 0.064] = $2,714,242.58.Similarly for a -0.5% movement in interest rate, impact = -$2,714,242.58.(g) Net fair value of financial assets and liabilitiesThe fair values and net fair values of financialassets and financial liabilities are determinedas follows:accordance with generally accepted pricingmodels based on discounted cash flowanalysis.• the fair value of financial assets andfinancial liabilities with standard termsand conditions and traded in active liquidmarkets are determined with reference toquoted market prices• the fair value of other financial assetsand financial liabilities are determined inThe Department considers the carryingamount of financial assets and financialliabilities recorded in the financial report tobe a fair approximation of their fair valuesbecause of the short-term nature of thefinancial instruments and the expectationthat they will be paid in full.Financial report111

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNote 20 Ministers and Accountable Officers(Responsible Persons)In accordance with the Ministerial Directionsissued by the Minister for Finance under theFinancial Management Act 1994, the followingdisclosures are made regarding responsiblepersons for the reporting period.NamesThe persons who held the positions ofMinisters and Accountable Officers in theDepartment are as follows:Minister for Education John Lenders, MP 1 July 2007 to 3 August 2007Bronwyn Pike, MP 3 August 2007 to 30 June 2008Acting Minister for Education Maxine Morand, MP 5 September to 11 September 2007Maxine Morand, MP 15 October to 28 October 2007Tim Holding, MP 4 January 2008 to 13 January 2008Tim Pallas, MP 14 January to 25 January 2008Maxine Morand, MP 30 June 2008Minister for Skills, Education Services and Employment Jacinta Allan, MP 1 July 2007 to 5 August 2007Acting Minister for Skills, Education Services and Employment John Lenders, MP 1 July to 8 July 2007Minister for Children and Early Childhood Development Maxine Morand, MP 3 August 2007 to 30 June 2008Acting Minister for Children and Early Childhood Development Bronwyn Pike, MP 1 October to 7 October 2007Tim Holding, MP 2 January to 13 January 2008Tim Pallas, MP 14 January to 25 January 2008Bronwyn Pike, MP 19 March to 30 March 2008Secretary Peter Dawkins 1 July to 30 June 2008Acting Secretary Jeff Rosewarne 6 July to 15 July 2007Darrell Fraser 28 September to 3 October 2007Jeff Rosewarne 14 October to 28 October 2007Jeff Rosewarne 22 December 2007 to 6 January 2008Jeff Rosewarne 21 March to 30 March 2008Jeff Rosewarne 30 June 2008112DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsRemunerationRemuneration received or receivable by theAccountable Officers in connection with themanagement of the Department during thereporting period was in the range:Other transactionsOther related transactions and loans requiringdisclosure under the Directions of the Ministerfor Finance have been considered and thereare no matters to report.2008 2007$40,000–$49,999 – 1$340,000–$359,999 – 1$390,000–$399,999 1 –Amounts relating to Ministers are reported inthe financial statements of the Department ofPremier and Cabinet.Related party transactionsincluded in the reconciliationamountThe Secretary is an ex-officio member ofthe Board of the Victorian Registration andQualifications Authority and the VictorianCurriculum and Assessment Authority towhich the Department paid grants during thefinancial year. As these roles are ex officio theSecretary receives no remuneration to performthese roles.Note 21 Remuneration of executivesThe numbers of executive officers, other thanMinisters and Accountable Officers, and theirtotal remuneration during the reporting periodare shown in the first two columns in the tableon page 114 in their relevant income bands.The base remuneration of executive officers isshown in the third and fourth columns. Baseremuneration is exclusive of bonus payments,longservice leave payments, redundancypayments and retirement benefits.Several factors have affected total remunerationpayable to executives over the year. A numberof employment contracts were completedduring the year and renegotiated, and a numberof executives received bonus payments duringthe year. These bonus payments depend onthe terms of individual employment contracts.Some contracts provide for an annual bonuspayment whereas other contracts only includethe payment of bonuses on the successfulcompletion of the full term of the contract. Anumber of these contract completion bonusesbecame payable during the year.A number of executive officers retired, resignedor were retrenched in the past year. This hashad a significant impact on total remunerationfigures due to the inclusion of annual leave,long service leave and retrenchment payments.The 2008 figures include executive officerstransferred from the Department of HumanServices on the creation of the Office forChildren and Early Childhood Developmentwithin the Department.The 2007 comparative figures include theremuneration of executive officers of theAdult, Community and Further EducationBoard and the Victorian Learning andEmployment Skills Commission for the period1 July 2006 to 31 December 2006.Financial report113

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsIncome band Total remuneration Base remuneration2008Number2007Number2008Number2007Number$0,000–$9,999 1 – 2 2$10,000–$19,999 2 4 1 4$20,000–$29,999 – 2 – 1$30,000–$39,999 – 1 – 2$40,000–$49,999 3 2 4 1$50,000–$59,999 – 1 – 1$60,000–$69,999 – 2 – 4$70,000–$79,999 1 3 1 2$80,000–$89,999 2 3 1 1$90,000–$99,999 – 3 – 4$100,000–$109,999 – 1 – 2$110,000–$119,999 – 1 1 2$120,000–$129,999 1 3 1 1$130,000–$139,999 3 2 7 6$140,000–$149,999 5 3 5 9$150,000–$159,999 4 6 6 3$160,000–$169,999 5 5 7 15$170,000–$179,999 7 10 13 5$180,000–$189,999 10 8 5 2$190,000–$199,999 5 3 1 –$200,000–$209,999 3 1 1 –$210,000–$219,999 – 2 – –$220,000–$229,999 – – 1 –$230,000–$239,999 2 – – 1$240,000–$249,999 2 1 – –$250,000–$259,999 – – – 2$260,000–$269,999 – – – 1$270,000–$279,999 – – 3 –$280,000–$289,999 – 1 – –$290,000–$299,999 1 2 – –$300,000–$309,999 3 – – –$310,000–$319,999 – 1 – –Total number 60 71 60 71Total amount ($’000) $9,938 $10,138 $8,960 $9,060114DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNote 22 Remuneration of auditorsAudit fees paid or payable to the VictorianAuditor-General’s Office for audit of theDepartment’s financial report:2008 2007Paid as at 30 June 25 7Payable as at 30 June 315 297Total audit fees 340 304Note 23 Contingent liabilities and contingent assetsDetails and estimates of maximum amountsof contingent liabilities are as follows:Quantifiable contingent liabilities2008$’0002007$’000Claims for damages 12,159 12,555Total quantifiable contingent liabilities 12,159 12,555Unquantifiable contingent liabilitiesThe Department has a number ofunquantifiable contingent liabilities as follows:(a) Indemnities provided by Departmentof Education and Early ChildhoodDevelopment to the Commonwealthin funding contracts entered with theCommonwealth throughout the year.Each indemnity is limited to $10 million forpersonal injuries and property damage,and $50 million for damages arising outof Internet usage.(b) Indemnities provided by Departmentof Education and Early ChildhoodDevelopment to teachers, volunteerworkers, school chaplains and schoolcouncils. This indemnity for teachersprotects them against liability for personalinjuries to students provided the teacherwas not drunk, or engaged in a criminaloffence, or engaged in outrageousconduct, and was incurred in the courseof the teacher’s employment.(c) Indemnities provided by Departmentof Education and Early ChildhoodDevelopment to members of schoolscouncils. The Education Act provides acomprehensive indemnity to membersof school councils for any legal liability,whether in contract, negligence,defamation etc.(d) The Government also provides anindemnity for persons employed underthe Public Sector Management andEmployment (PSME) Act 1998.No material losses are anticipated in respectof any of the above unquantifiable contingentliabilities.None of the above contingent liabilities aresecured over any assets of the Department.Contingent assetsThe Department does not have any quantifiableor unquantifiable contingent assets.Financial report115

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNote 24 Commitments for expenditure2008$’0002007$’000(a)Capital commitmentsCommitments for the acquisition of buildings, plant and equipmentcontracted for at the reporting date but not recognised as liabilities:Within one year 171,260 117,965Later than one year but not later than 5 years 42,226 15,400Later than 5 years – –Total capital commitments 213,486 133,365(b) Operating leasesCommitments for minimum lease payments in relation tonon-cancellable operating leases are payable as follows:Within one year 41,986 62,161Later than one year but not later than 5 years 59,740 67,099Later than 5 years 13,135 15,858Total operating leases 114,861 145,118Total commitments 328,347 278,483The Department leases equipment, including photocopiers, computers,motor vehicles and property, with varying lease terms.(c) Finance leasesCommitments in relation to finance leases are payable as follows:Within one year 4,001 3,312Later than one year but not later than 5 years 2,970 3,213Later than 5 years – _Minimum lease payments 6,971 6,525Less: Future finance charges (418) (397)Present value of minimum lease payments 6,553 6,128Add: Lease incentives on non-cancellable operating leases included in lease liabilities – _Total lease liabilities 6,553 6,128Representing lease liabilities:Current (note 14) 3,694 3,034Non-current (note 14) 2,859 3,0946,553 6,128The weighted average interest rate implicit in the leases is 6.94% (2007: 6.59%)116DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNote 25 Ex-gratia paymentsThe Department made the following ex-gratiapayments. Included in the total amount arethe following ex-gratia payments in bands of$10,000 arising as a result of personal injuryclaims involving students and third partiesand settlement of legal action taken underthe Equal Opportunity Act and WorkplaceRelations Act 1995.2008Number2007Number$0–$9,999 48 41$10,000–$19,999 – 6$20,000 –$29,999 1 5$30,000–$39,999 – 6$40,000–$49,999 1 8$50,000–$59,999 3 3$60,000–$69,999 1 1$70,000–$79,999 1 –$80,000–$89,999 1 2$90,000–$99,999 – 1$100,000–$109,999 – 1$110,000–$119,999 – 2$120,000–$129,999 – –$130,000–$139,999 – –$140,000–$149,999 – –$150,000–$159,999 1 –$160,000–$169,999 1 1$170,000–$179,999 – –$180,000–$189,999 – –$190,000–$199,999 – –$200,000–$209,999 1 –$210,000–$219,999 – –$220,000–$229,999 – –$230,000–$239,999 1 –$240,000–$249,999 – –$250,000–$259,999 – –$260,000–$269,999 – 1$270,000–$279,999 – –$280,000–$289,999 – –$290,000–$299,999 – 1$300,000–$399,999 1 –Total number of payments 61 79Total amount of payments $1,556,734 $2,289,598Financial report117

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNote 26 Cash inflow informationReconciliation of net result for the reporting period to net cash inflowfrom operating activities2008$’0002007$’000Net result for the reporting period 17,561 64,481Non-cash movementsNet (gain)/loss on sale of non-current assets 14,193 3,809Depreciation and amortisation 216,726 211,338Net transfers of resources provided free of charge or for nominal consideration 6,476 (307)Movements in operating assets and liabilitiesDecrease (increase) in current receivables (96,002) (169,641)Decrease (increase) in other current operating assets (28,552) 1,752Decrease (increase) in non-current receivables (10,973) 118,287Decrease (increase) in other non-current operating assets 2,907 (392)Increase (decrease) in current payables 120,883 43,648Increase (decrease) in other current liabilities 4,159 33,867Increase (decrease) in current employee entitlements 30,128 6,789Increase (decrease) in non-current payables – –Increase (decrease) in other non-current liabilities – –Increase (decrease) in non-current employee entitlements 10,909 14,097Net cash inflow from operating activities 288,415 327,729Note 27 Subsequent eventsThe Department of Education and EarlyChildhood Development has no material orsignificant events occurring after the reportingdate to the date of this report that would affectsignificantly the figures included in this report.118DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNote 28 Annotated receipt agreementsThe following is a listing of Section 29 Annotatedreceipt agreements approved by the Treasurer.2008$’0002007$’000Sales of goods and servicesAlarm monitoring 146 145Schools hostels – food & other taxable supplies – –Schools hostels – accommodation – –Housing rent (input taxed) 938 911Registered Schools Board – 3Unwanted alarms 219 152Copyright 391 2191,694 1,430Asset salesSale of land 9,558 23,1279,558 23,127Commonwealth Specific Purpose PaymentsIndigenous education strategic initiatives 7,154 3,602Literacy and numeracy special learning needs 70,393 67,306Capital school buildings 75,809 71,376Investing in our Schools 35,709 126,324ESL New Arrivals 28,837 19,688Language other than English (LOTE) 4,345 4,269Country Areas Programme (CAP) 2,734 2,605Aboriginal pre-schools services 309 –Special Education Program 5,491 –Literacy & Numeracy Week 24 208230,805 295,378Total annotated receipts (note 5) 242,057 319,935Financial report119

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNote 29 Trust account balancesThe following is a listing of trust accountbalances relating to trust accounts controlledor administered by the Department.2008$’0002007$’000Controlled trustsSuspense 5 96State Treasury Trust 83,683 58,656Vehicle lease trust account – –Commonwealth Treasury Trust 15,488 5,135Total controlled trusts 99,176 63,887Administered trustsPrizes & scholarships 1,621 1,600Commuter club (93) (65)Onpassing from the Commonwealth 334 7Total administered trusts 1,862 1,542The following is a list of trust accounts openedand closed by the Department during2007–08.Trust accounts openedTrust accounts closedNilNil120DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsFinancial report121

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations122DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsFinancial report123

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsAppendicesAppendix 1Consistency of budget and financial reportingThe Government’s budgeting frameworkreports each department’s financial estimatesin the annual State Budget Papers on a basisthat consolidates all budget sector agencieswithin the Department.Budget sector agencies are those agenciesowned by the State Government that receivethe majority of their income from StateGovernment sources.The financial statements provided in thisappendix are consistent with those publishedin the 2007–08 State Budget PaperNumber 4 – Budget Estimates. Provisionof the statements in this appendix allowscomparison of the actual financial results ofthe Department consolidated budget sectoragencies with the estimates published inthe State Budget Papers. This is consistentwith the Government’s commitment to moretransparent financial reporting.The total resources made available to adepartment are applied to three uses:• provision of outputs• asset investment• payments on behalf of the State.The financial statements on the followingpages support the Department’s provision ofoutputs. The information provided includesthe operating statement, balance sheet andcash flows for the Department, and arepresented in the format consistent with theAAS29 Accounting Standard. However, forthe purposes of this report they have beendivided into controlled and administered items.Controlled items reflect those resources appliedby the Department to carry out its functionsand provide outputs. Administered items referto those resources over which the Departmentcannot exercise direct control. Authority isprovided through an appropriation for paymentsmade on behalf of the state. Under the AAS29Standard, these items would normally appearas notes to the financial statements.Due to machinery-of-government changes in2007–08, responsibility for part of the Office forChildren in DHS moved to the Department.The Department has assumed responsibilityfor Adolescent Health Services, Child Healthand Support Services, Early ChildhoodEducation and Care and Early ChildhoodIntervention Services.The financial information consolidatesinformation for the following portfolio entitiesfor 12 months:• Department of Education (includinggovernment schools)• Merit Protection Boards• VCAA.The financial information consolidatesinformation for the following responsibility fornine months from September 2007:• Children and Early Childhood Development.124DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsOperating statement for the year ended 30 June 2008Controlled itemsNotes2007–08Actual($ million)2007–08Budget($ million)Variation (a)(%)Revenue from ordinary activitiesOutput appropriations 1 6422.3 6,213.3 3.4%Special appropriations 5.9 0.3 n/aResources received free of charge or for nominal consideration 0.0 0.0 n/aSale of goods and services 2 204.0 163.7 24.6%Commonwealth grants 3 34.0 6.6 n/aOther revenue and revenue from other parties (b) 2 452.4 307.6 47.1%Total 7,118.5 6,691.4 6.4%Expenses from ordinary activitiesEmployee benefits (c) 4,042.8 4,044.6 -0.04%Depreciation and amortisation 4 217.2 277.9 -21.8%Resources provided free of charge or for nominal consideration 5 4.7 0.0 n/aGrants and other payments 597.3 598.9 -0.3%Capital asset charge 727.3 727.3 n/aSupplies and services (d) 6 1,504.1 883.0 70.3%Other expenses from ordinary activities 0.0 0.0 n/aBorrowing costs 0.9 0.5 69.6%Total 7,094.3 6,532.1 8.6%Result from ordinary activities 24.2 159.3 -84.8%Net result for the reporting period 24.2 159.3 -84.8%Net increase in asset revaluation reserve 2,067.0 0.0 n/aTotal revenues, expenses and revaluation adjustments recogniseddirectly in equityTotal changes in equity other than those resulting fromtransactions with Victorian State Government in its capacityas owner on behalf of the Crown2,067.0 0.0 n/a2,091.2 159.3 n/a125

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsOperating statement for the year ended 30 June 2008Administered itemsNotes2007–08Actual($ million)2007–08Budget($ million)Variation (a)(%)Administered incomeSale of goods and services 1.7 1.5 13.6%Commonwealth grants 7 2,324.2 2,175.4 6.8%Other 8 (50.1) 9.9 n/aTotal 2,275.8 2,186.8 4.1%Administered expensesGrants and other payments 7 1,647.9 1,541.4 6.9%Supplies and services 0.6 0.0 n/aPayments into the Consolidated Fund 630.0 645.4 -2.4%Total 2,278.6 2,186.8 4.2%Revenue less expenses (2.7) 0.0 n/a(a) Variation between 2007–08 Actual and 2007–08 State Budget.(b) Includes investment revenue, gains on disposal of physical assets, revenue for services delivered to parties outside of government.(c) Includes salaries and allowances, superannuation contributions and payroll tax.(d) Includes payments to non-government organisations for delivery of services.The variances for controlled items can beexplained as follows:During the year there was a machineryof-governmenttransfer effective from1 September 2007. As a result, the Office forChildren was transferred from the DHS to theDepartment. This resulted in the Department’sname being changed to the Department ofEducation and Early Childhood Development.Note 1The variance mainly reflects an increase inadditional appropriation funding due to themachinery-of-government transfer of Officefor Children from DHS effective from1 September 2007.Note 2The variance is mainly due to understatedinitial published budget for schools’ third partyrevenue and lower actual revenues raised byschools from non-government sources. Offsetby an increase in actual revenue collected forinternational education fees in 2007–08.Note 3The variance reflects increased revenue fromthe Commonwealth Government for newprograms introduced into Schools such asnational testing, Even Start National Tuitionprogram and Digital Education Revolutionwhich were not included in the initial budget.Note 4The variance is mainly due to a change in theDepartment’s policy threshold for capitalisationof schools’ plant and equipment. The thresholdfor capitalisation was raised from $1000 to$5000 and asset purchases less than $5000in 2007–08 are recorded as an expense undersupplies and services.Note 5The variance is due to the machinery-ofgovernmenttransfer of employee benefits forthe Office for Children from DHS effective from1 September 2007.Note 6The variance is mainly due to machinery-ofgovernmenttransfer of Office for Children andthe effect of the change in the Department’spolicy threshold for capitalisation of schools’ plantand equipment. In addition, schools’ expenditurewas greater was greater than budgeted for inmost areas, especially for maintenance.126DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsThe variances for administered items can beexplained as follows:Note 7The variance reflects additional operatingand capital grants from the Commonwealthfor government and non-government schoolsassociated with the extension of the Investingin our Schools program, enrolment growth andindexation.Note 8The variance is due to recognition of a loss onthe sales of land and buildings in schools.Balance sheet as at 30 June 2008Controlled itemsNotes2007–08Actual($ million)2007–08Budget($ million)Variation (a)(%)AssetsCurrent assetsCash assets 1 776.1 719.6 7.9%Other financial assets 2 0.0 57.3 -100.0%Receivables 821.6 831.9 -1.2%Inventories 0.0 0.0 n/aPrepayments 3 33.2 4.6 n/aOther assets 0.0 0.0 n/a1,630.9 1,613.3 1.1%Non-current assets classified as held for sale 4 38.6 23.9 61.8%Total current assets 1,669.5 1,637.2 2.0%Non-current assetsReceivables (b) 0.4 0.3 19.9%Other financial assets 1 24.8 19.3 28.3%Property, plant and equipment 5 11,478.8 9,582.0 19.8%Intangible assets 0.0 4.4 -100.0%Total non-current assets 11,504.0 9,605.9 19.8%Total assets 13,173.5 11,243.1 17.2%LiabilitiesCurrent liabilitiesPayables 6 251.4 323.3 -22.2%Interest-bearing liabilities 3.7 3.1 21.0%Employee provisions 7 1,070.8 949.5 12.8%Other 89.1 85.7 4.0%Total current liabilities 1,415.1 1,361.6 3.9%Non-current liabilitiesInterest-bearing liabilities 2.9 3.2 -10.1%Employee provisions 77.8 73.9 5.3%Amounts owing to other departments 0.0 0.0 n/aTotal non-current liabilities 80.7 77.1 4.7%Total liabilities 1,495.8 1,438.7 4.0%Net assets 11,677.6 9,804.4 19.1%Appendices127

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsBalance sheet as at 30 June 2008Administered itemsNotes2007–08Actual($ million)2007–08Budget($ million)Variation (a)(%)AssetsCurrent assetsCash assets 0.3 0.1 n/aReceivables 2.1 5.1 -59.7%Other financial assets 1.6 1.5 2.3%Prepayments 3.9 3.3 18.6%Total current assets 7.8 10.0 -21.7%Non-current assetsProperty, plant and equipment 0.0 0.0 0.0%Total non-current assets 0.0 0.0 0.0%Total administered assets 7.8 10.0 -21.7%Current liabilitiesOther 3.9 3.3 18.2%Total current liabilities 3.9 3.3 18.2%Total administered liabilities 3.9 3.3 18.2%Net assets 3.9 6.7 -41.3%(a) Variation between 2007–08 Actual and 2007–08 State Budget.(b) Includes cash balance held in trust in the Public Account.(c) Includes employee benefits and superannuation.During the year there was a machineryof-governmenttransfer effective from 1September 2007. As a result, the Office forChildren was transferred from DHS to theDepartment. This resulted in the Department’sname being changed to the Department ofEducation and Early Childhood Development.Note 1The variance is due to higher cash andinvestment balances being greater thanexpected due to an increase in schools’third party revenue, rising interest rates andunspent capital funding for schools.Note 2The variance is due to the redemption of ashort-term investment that was transferred tothe Department of Innovation, Industry andRegional Development due to the machineryof-governmenttransfer in 2006–07, and adecrease in short-term deposits held bythe VCAA.Note 3The variance reflects early payment of servicefees to kindergartens prior to 30 June 2008.Other items that contributed increase inprepayments in 2007–08 are for expensesrelating to notebook leasing and copyrightwhich were higher than budgeted for.Note 4The variance reflects the increase in assets tobe transferred to the Department of Innovation,Industry and Regional Development due to themachinery-of-government transfer in 2006–07.This is offset by a decrease in the level ofactivity associated with land and buildings heldfor sale for the Department.Note 5The variance mainly reflects the impact ofthe re-valuation of the Department’s land andbuildings. This is offset by a decrease in plantand equipment used in schools due to policychange in the capitalisation threshold.128DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNote 6The variance represents overstatement ofbudget for creditors due to the machineryof-governmenttransfer in 2006–07 of theVictorian Learning and Employment SkillsCommission to the Department of Innovation,Industry and Regional Development.Note 7The variance represents the impact of theteachers’ Enterprise Bargaining Agreementbeginning 11 May 2008 and current estimateof commitments in relation to oncost balances,and the machinery-of-government transferin 2007–08 with recognition of employeeentitlements for the Office for Children.Cash flow statement for the year ended 30 June 2008Controlled itemsNotes2007–08Actual($ million)2007–08Budget($ million)Variation (a)(%)Cash flows from operating activitiesReceipts from Government 1 5,529.0 6,158.3 -10.2%Receipts from other entities 2 194.1 118.9 63.2%Payments for supplies, grants and employees 3 (6,088.9) (5,509.3) 10.5%(365.8) 767.9 n/aInterest received 4 45.1 27.6 63.8%Other receipts 5 419.4 295.6 41.9%Capital asset charge (727.3) (727.3) 0.0%Borrowing costs expense (0.9) (0.5) 69.6%Net cash inflow (outflow) from operating activities (629.4) 363.2 n/aCash flows from investing activitiesPayments for non-financial assets 6 (487.3) (633.1) -23.0%Proceeds from sale of non-financial assets 7 2.6 2.4 7.3%Payments for investments 3 850.7 0.0 n/aRepayment of financial investments by other entities 8 46.8 (5.0) n/aNet cash inflow/(outflow) from investing activities 412.8 (635.7) n/aCash flows from financing activitiesNet proceeds from capital contribution by State Government (727.3) (727.3) 0.0%Net proceeds of borrowings (1.7) 0.0 n/aNet cash inflow/(outflow) from financing activities (729.0) (727.3) 0.2%Net increase (decrease) in cash held (945.6) (999.8) -5.4%Cash at beginning of the financial year 639.5 639.5 0.0%Cash at the end of the financial year 776.1 719.6 7.9%a) Variation between 2007–08 Actual and 2007–08 State Budget.Appendices129

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsThe variances for controlled items can beexplained as follows:During the year there was a machineryof-governmenttransfer effective from1 September 2007. As a result, the Office forChildren was transferred from DHS to theDepartment. This resulted in the Department’sname being changed to the Department ofEducation and Early Childhood Development.Note 1Refer to note 1 of the operating statement.Note 2Refer to note 2 of the operating statement.Note 4The variance reflects a higher return onschools’ investments than originally budgeted.Note 5Refer to note 2 of the operating statement.Note 6Refer to note 4 of the operating statement andnote 5 of the balance sheet.Note 7Refer to note 8 of the operating statement.Note 8Refer to note 1 and 2 of the balance sheet.Note 3Refer to note 6 of the operating statement andnote 3, 6 and 7 of the balance sheet.130DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsAppendix 2Portfolio statisticsSchool educationFTE government school students by year level, February 2007 andFebruary 2008Year level 2007 2008Preparatory 43,490.1 43,967.5Year 1 43,378.0 42,880.8Year 2 43,780.8 43,291.5Year 3 43,713.6 43,771.8Year 4 43,813.3 43,683.4Year 5 43,906.9 43,523.2Year 6 44,134.3 43,886.3Ungraded 6.2 1.4Primary total 306,223.2 305,005.9Year 7 38,737.7 37,882.0Year 8 39,417.7 38,959.7Year 9 39,931.8 39,772.5Year 10 37,991.8 38,921.9Year 11 37,523.9 36,867.3Year 12 29,663.5 30,792.7Ungraded 24.0 135.0Secondary total 223,290.4 223,331.1Special 8,005.3 8,579.2Language 1,339.0 1,200.0Total 538,857.9 538,116.2Appendices131

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsFTE students by student type and sector, February 2005–08Government Catholic Independent All schoolsStudent type 2005 2006 2007 2008 2005 2006 2007 2008 2005 2006 2007 2008 2005 2006 2007 2008Primary 309,972.6 307,576.5 306,223.2 305,005.9 98,406.6 98,373.0 98,307.1 98,978.9 41,117.5 42,310.3 43,282.0 44,706.8 449,496.7 448,259.8 447,812.3 448,691.6Secondary 221,618.3 222,826.7 223,290.4 223,331.1 82,921.3 84,375.2 85,604.2 87,016.0 67,074.0 68,694.4 70,293.1 72,622.6 371,613.6 375,896.3 379,187.7 382,969.7Special 7,219.4 7,756.1 8,005.3 8,579.2 160.4 170.0 153.6 182.3 356.4 408.6 445.6 430.4 7,736.2 8,334.7 8,604.5 9,191.9Language 1,142.0 1,184.0 1,339.0 1,200.0 – – – – – – – – 1,142.0 1,184.0 1,339.0 1,200.0Total 539,952.3 539,343.3 538,857.9 538,116.2 181,488.3 182,918.2 184,064.9 186,177.2 108,547.9 111,413.3 114,020.7 117,759.8 829,988.5 833,674.8 836,943.5 842,053.2% of all students 65.1 64.7 64.4 63.9 21.9 21.9 22.0 22.1 13.1 13.4 13.6 14.0 100.0 100.0 100.0 100.0Number of schools by school type and sector, February 2005–08Government Catholic Independent All schoolsSchool type 2005 2006 2007 2008 2005 2006 2007 2008 2005 2006 2007 2008 2005 2006 2007 2008Primary 1,222 1,213 1,206 1,201 380 378 378 379 54 52 51 47 1,656 1,643 1,635 1,627Primary–secondary 50 48 50 53 12 13 13 12 132 134 133 139 194 195 196 204Secondary 261 263 258 253 84 84 86 87 19 20 21 21 364 367 365 361Special 80 78 76 76 7 7 7 8 12 12 12 13 99 97 95 97Language 4 4 4 4 – – – – – – – – 4 4 4 4Total 1,617 1,606 1,594 1,587 483 482 484 486 217 218 217 220 2,317 2,306 2,295 2,293% of all schools 69.8 69.6 69.5 69.2 20.8 20.9 21.1 21.2 9.4 9.5 9.5 9.6 100 100 100 100132DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsAppendix 3Human resources policiesHuman resourcesEffective human resources, recruitment,development, retention and managementpolicies and the delivery of associated servicesare essential if a high-quality and diverseworkforce is to contribute to the delivery ofthe Department’s outputs in an efficient andresponsive manner.The Department applies the standards issuedby the Public Sector Standards Commissioner,which set out the essential requirements formanagers and principals to apply the publicsector values and employment principlesunder the Public Administration Act 2004.The standards stipulate that:• employment decisions are based on merit• public sector employees are treated fairlyand reasonably• equal employment opportunity is provided• public sector employees have a reasonableavenue of redress against unfair orunreasonable treatment• in the case of the Public Service Bodies,the development of a career public serviceis fostered.The Department’s human resources policiesgo beyond the minimum requirements setby these standards and reflect best practice,consistent with the Commissioner’s nonbindingguidelines documents.Key policiesThe Department is committed to developingand supporting its workforce by:• building leadership capacity• building the future workforce throughenhancing workforce capacity• actively shaping supply and managingemployee relations• creating and supporting a culture of health,safety and wellbeing• creating and supporting a performance anddevelopment culture• implementing robust human resourcemanagement systems.Staff developmentDevelopment of the Victorian Public Service(VPS) staff is focused on the human resourcesstrategic priorities of building leadershipcapacity (particularly on improving thedevelopment of senior leaders within the VPS)and building the future workforce by enhancingworkforce capacity through the building ofcorporate workforce capabilities.Projects established to review and updatethe Department VPS Accountability andCapability Framework resulted in revisedcorporate leadership and VPS behaviouralcapability frameworks designed to underpinthe key human resource functions of attraction,selection, development and retention.A range of learning and developmentopportunities were provided, with a greateremphasis being placed on developmentthrough on-the-job, experience-basedactivities and the building of beneficial workingrelationships.The award of internal scholarships for theExecutive Fellows program and the ExecutiveMaster of Public Administration offeredthrough the Australia and New Zealand Schoolof Government, the Davos Future Summitand the Williamson Community Leadershipprogram provided opportunities for policy andleadership skills development.Development for VPS staff continued througha range of programs from project managementand presentation skills to Certificate IV inAssessment and Training. The induction andorientation program, strongly supported bysenior executives, was well received bynew staff.Appendices133

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsProfessional development for school staff isdiscussed on pages 44–46 of this report.Focus on womenWomen represented 74.2 per cent of theDepartment’s workforce in June 2008.The Department’s Focus on Women strategyaligns with the human resources strategicpriorities to build leadership capacity byimproving leadership opportunities andcareer pathways for women, together with thetargeting of initiatives to accelerate leadershipdevelopment and cultural change. It alsosupports the building of the Department’sfuture workforce through the expansion ofskill development programs which build thecapability of all employees.Women represented 70.1 per cent of teachingstaff and 89.2 per cent of non-teaching staffin government schools in June 2008. Thepercentage of women in the principal class ingovernment schools continued to rise, with anincrease from 51.1 per cent in June 2007 to52.6 per cent in June 2008.Women represented 67.8 per cent of VPSstaff in central and regional offices. Thepercentage of women at executive officerlevel increased from 36.2 per cent in June2007 to 36.6 per cent in June 2008.The Eleanor Davis School Leadership program,a Women in Leadership initiative, is a keycomponent of the Department’s Focus onWomen strategy. The program, availableto women seeking to move into schoolleadership positions, continued to attract ahigh number of applicants. The program wassuccessful in supporting aspiring school leadersand providing experienced principals withopportunities to assist in the development offuture leaders. On average, 17 (56 per cent) ofthe 30 participants each year receive promotionto the principal class within three years.To support the increased participation of womenin leadership roles, the Julia Flynn programwas revived in 2007, offering 15 scholarshipsto women identified as potential leaders.The program provides for enrolment in anaccredited graduate certificate course designedaround public sector management capabilities.In 2008, 16 scholarships were awarded.Diversity and equal opportunityThe Department continued to demonstrateleadership in the application of equalopportunity principles and encouragement ofdiversity across all its workplaces and services.Initiatives were undertaken to strengthensystems and processes supporting diversityand equity, aligned to strategic education andearly childhood objectives and outcomes.These initiatives ranged from reviews ofhuman resource policies to production andcommunication of publications such asNon-discriminatory and Harassment FreeWorkplaces to all schools and Departmentalworkplaces. Further diversity plans wereincorporated in the Department’s businessplanning processes. The employee survey(‘Your Job, Your Say’) addressed employeediversity information, which enables theDepartment to plan future inclusion strategiesfor recruitment, retention and building capability.The Department continued promotion of theworkplace behaviour and sexual harassmentonline training for all employees andmaintained an active partnership with theVictorian Equal Opportunity and Human RightsCommission. The Department’s complianceresponsibilities with regard to the HumanRights and Responsibilities Act 2006 were afocus of activity.The Disability Action Plan 2005–08 continuedto be progressively implemented under thestewardship of the Disability Action PlanCommittee, which included active participationof staff with a disability. A highlight was thepublication of the Accessible CommunicationWorkplace Guide as a resource for managersand employees.To increase the participation of people witha disability in the Department’s workforce,134DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsa disability employment scheme wasimplemented in partnership with DisabilityWorks Australia. Modification of buildings andfacilities and other reasonable adjustmentswere undertaken to ensure improved access byand accommodation of people with a disability.The Department continued to maintain itscommitment to promoting flexible work–lifebalance arrangements, in particular to assiststaff with family responsibilities. Flexible hours,part-time employment, job-share arrangementsand telecommuting were implemented in bothschools and corporate workplaces.Staff participated in various diversityawareness celebration events includingCultural Diversity Week, Day of People witha Disability and Reconciliation Week.The Department is proud of supporting andvaluing Victoria’s culturally and linguisticallydiverse communities and this is reflected inthe development of the Cultural DiversityPlan 2008–10. This plan promotes activitiesto improve access by such communitiesto education and early childhood services.Commitments in the plan promote socialinclusion, recognise the disadvantageexperienced by some communities and focuson the provision of culturally sensitive services.Employee relationsExtensive support was provided to managersand staff to ensure that comprehensiveconsideration was given to the industrialrelations and human resource policyperspectives associated with implementation ofthe new Departmental organisational structure.Negotiations in respect to the VictorianGovernment Schools – School ServicesOfficers Agreement commenced in March2008 while the Nurses Agreement negotiationscommenced in May 2008.In-principle agreement on key issues for theVictorian Government Schools Agreement wasreached with the Australian Education Union inMay 2008.Human resources systems andservicesThe Department provided high-qualitypersonnel services, including staffing,employment and payroll administration,together with advice on performancemanagement, conduct and ethics.Workforce planningThe Department continued work to enhancethe capacity and capability of the Department’scurrent and future workforce.During 2007–08, the Department implementedtwo new initiatives focusing on mathematicsand science. These complemented a rangeof teacher supply initiatives announced bythe Government in January 2004 in the reportTeacher Supply and Demand for GovernmentSchools.Highlights• The Career Change program continued in2008 with a fourth intake of 30 non-teachingprofessionals. Priority was given to schoolswith vacancies in mathematics andscience. The program combines supervisedclassroom teaching experience withpart-time study towards gaining a teachingqualification.• Fifty-five of the 63 trainees from the2005 and 2006 Career Change intakessuccessfully completed the two-yearschool-based training program, while 32trainees from the 2007 intake continuedinto the second year of their program.• Fifty mathematics and science graduatescholarships were made availableto graduates to undertake studies inpre-service education courses.• The Special Education Scholarship enabled34 participants to commence specialeducation studies in 2008.• The Rural Retraining program enabled256 teachers, mainly in rural schools, tocommence studies in curriculum areasexperiencing teacher recruitment difficulties.Appendices135

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsEighty-eight teachers completed theircourses, 53 during 2007–08.• A total of 238 student teachers and morethan 140 schools benefited from the StudentTeacher Practicum Scheme. The schemeprovides student teachers with financialincentives to undertake their practicum intargeted schools, predominantly in ruralareas.• The promotion of teaching as a careeroption in non-traditional areas of recruitmentwas pursued via career fairs, universitycareer expos and visits. This was enhancedby the publicity generated as a resultof advertising Career Change and theMathematics and Science Scholarshipprograms.• Links continued to be strengthenedbetween the Department and universities,particularly education faculties deliveringpre-service teacher education courses,both through formal forums, such as theTeacher Supply and Demand ReferenceGroup and the Victorian Council of Deansof Education meetings, and throughinformal dialogue on a range of teachersupply issues.• Other initiatives designed to assist schoolsin filling vacancies in specialist subjectareas and in particular geographic locationsresulted in:– the appointment of more than 1466recent teacher graduates through theTeacher Graduate Recruitment program– 150 scholarships being awarded tostudent teachers and new graduatesunder the Teaching Scholarship Scheme.In 2007–08, there were eight exemptions fromadvertisements for VPS recruitment approvedby the Secretary or his delegate, consistentwith the requirements of the Public SectorStandards Commissioner. These exemptionsrelated to the appointment of staff at theconclusion of the Graduate RecruitmentScheme and the appointment of staff froma disadvantaged group.Employee health, safety and wellbeingThe Health, Safety and Wellbeing strategy2007–09 continues to support the integrationof employee health, safety and wellbeing inschools and other Departmental workplaces.The strategy focuses on Occupational Healthand Safety (OHS) accountability through thedevelopment and implementation of OHSsystems, training and targeted hazard andrisk reduction programs. This strategy aims toensure that the Department meets legislativecompliance requirements and strengthensOHS and injury management systems.Highlights• A joint mediation pilot with DisputeSettlements Centre Victoria to deliverconsistent standards and quality mediationservice to Departmental employeescommenced.• Return to Work training by the Departmentand the Department’s WorkCover agent(CGU Workers’ Compensation) for principalsand business managers was developedand delivered.• The Healthy Schools are Effective Schoolsresource package was revised to integrateWorkCover’s Stresswise and provide aneffective tool for use with the SchoolClimate Survey.• The Machine Safety in Technology trainingcourse and assessment for all governmentschool technology teachers was delivered.• The Occupational Violence training coursefor government schools was delivered.• Regional funding allocations to cover OHSmandated training such as Health and SafetyRepresentative and Management Nomineetraining was significantly increased.• The first phase of a pilot examining positivebehaviour support as a way of addressingstudent challenging behaviour in specialschools was completed. The eight pilotschools provided feedback on the programand its impact in improving studentengagement and addressing challengingbehaviour.136DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsKey performance indicatorsThe Department is committed to reporting onthe Victorian WorkCover Authority’s lag andlead indicators. The tables on pages 137 and138 provide measurements against the 14agreed OHS key performance indicators.People Matters survey of OHSPeople Matters survey of OHS Questions Average per cent who ‘Agree’and ‘Strongly agree’ (%)Management commitment My manager is committed to health and safety improvements. 93Organisational commitment My organisation is committed to health and safety improvements. 93Health and safety representativesConsultationPolicy awarenessProactive OHS actionOHS reportingCorrective actionElected health and safety representatives regularly take up health andsafety issues with management in my organisation.There is meaningful employee consultation in my organisation on healthand safety matters.Matters that can affect health and safety in my organisation are addressedby work instructions, policies and procedures.My organisation regularly undertakes proactive action to improve healthand safety.Employees in my organisation are encouraged to report health and safetyincidents and injuries.Corrective action is taken by my organisation when unsafe conditions areidentified through incident and/or injury reports.848490829393Conduct and ethicsCriminal record checksIn 2007–08, the Department conducted over5500 criminal record checks in collaborationwith the Commonwealth CrimTrac Agency viathe Department’s online criminal record checksystem. Of these checks, approximately 50per cent were for people wishing to performvolunteer work in schools. The number ofcriminal record checks conducted through theDepartment has decreased from the previousyear due to the introduction of the Workingwith Children Check.The Working with Children Act 2005 introduceda minimum mandatory checking standard, theWorking with Children Check, for those whoare employed or volunteer in child-related workin educational institutions in Victoria. From31 December 2007, suitability to be employedin a non-teaching role or perform volunteerwork in government schools has beendemonstrated by a Working with Children Cardissued by the Department of Justice.Since 1 January 2008, criminal record checksfor teachers in government schools have beenconducted through the Victorian Instituteof Teaching.Appendices137

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsOccupational Health and Safety measuresMeasure OHS lag key performance indicators 2007–08 Target 2007–08 ActualNumberRateClaimsNumber and rate of standardised WorkCoverclaims 1 , including sprains and strains, stress, other816 917 1.697Number and rate of lost-time WorkCover claims 2 302 369 0.683Number and rate of claims exceeding 13 weeks 3 149 175 0.357Fatalities Fatality claims 1 No fatalities 0Claims costs Average cost per WorkCover claim 4 $44,497 $42,947Measure OHS lead key performance indicators 2007–08 Target 2007–08 ActualManagementcommitmentEvidence of OHS policy statement;OHS objectivesRegular reporting to seniormanagement of OHS, and OHS plans(signed by CEO or equivalent)Reported quarterly and/or annuallyEmpirical evidence of OHS plans,policies and reporting processesDepartment’s OHS policy includingobjectives at Quarterly health, safety and wellbeingreports to Departmental LeadershipTeam regarding OHS trends, issuesand project plans, achievements andmilestonesEvidence of OHS criteria in purchasingguidelines (including goods, servicesand personnel)Reported quarterly and/or annuallyEmpirical evidence of OHS criteria inpurchasing guidelinesSchedule 21 Part D of the Departmenttender documents addresses healthand safety managementPart E – Ethical purchasing requirestenderers to declare any OHSlegislative breachesConsultation andparticipationEvidence of agreed structure ofDesignated Work Groups, Health andSafety representatives, and issueresolution proceduresReported quarterly and/or annuallyThe Department’s OHS consultationpolicy outlines the structure forDesignated Work Groups, Health andSafety Representatives and issueresolution procedures Risk managementPer cent of internal audits/inspectionsconducted as planned80 per cent of planned internal auditsconducted100 per cent% of issues identified actioned arisingfrom:• internal audits• Health and Safety RepresentativesImprovement Notices• WorkSafe notices• OHS Committee recommendations• OHS projects71 per cent issues actioned in internalauditsTraining Per cent of OHS representatives trained 75 per cent of representatives trained 78 per centPercentage of managers and staff whohave received OHS training65 per cent of schools havemanagement nominee with someOHS training (2006)Staff risk-specific training:• 61 per cent special education• 55 per cent science, arts andtechnology• 56 per cent physical education1 Standardised claims are those that have exceeded the employer excess(days or dollars) or are registered as a standard claim and are open with nopayments at the time of extraction. Fatality claims are also based on the samedefinition of standardised claims. Date for standardised claims and deathclaims is at 30 June each financial year.2 A lost-time claim is a claim with one or more days compensated by theVictorian WorkCover Authority (that is, once the employer has paid theten-day excess) at the time of extraction. Lost-time claims are a sub-set ofstandardised claims. Date for lost-time claims is at 30 June each financial year.3 13-week claims is a measure of a number of claims exceeding 13 weeks,compensation based on derived day count. The 13-week measure beginsat day one (that is, employer excess and Victorian WorkCover Authoritypayments). Data for 13-week claims is based on the calendar year (that is,January to December) extracted as at 30 June each year.4 Data for average cost per claim based on claims reported from April to Marcheach year extracted as at 30 June each year.138DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsAppendix 4Workforce statistics and senior officersWorkforce dataThe following workforce data is based onbusiness unit (cost centre) and chargelocation. It includes:• staff on pay (including paid leave) who wereemployed in the Department in the lastfortnight of June 2008• ongoing and fixed-term staff.It excludes:• VPS staff who ceased employment with theDepartment in the last fortnight of June 2008• school-based staff who ceased employmentprior to the last fortnight of June 2008• staff on leave without pay (including familyleave) or absent on secondment• external contractors/consultants andtemporary staff employed by employmentagencies• staff employed directly by individual schoolcouncils.FTE of teaching service staff in schools by classification and sex on pay as at June 2008Classification Males Females TotalPrincipal Class 842.5 1,038.5 1,881.0PrimaryTeaching staff 3,272.2 15,383.7 18,655.9Instructors 11.0 10.7 21.7Total 4,125.7 16,432.9 20,558.6Principal Class 493.8 445.3 939.1SecondaryTeaching staff 7,273.9 11,440.5 18,714.4Instructors 165.0 70.1 235.1Total 7,932.7 11,955.9 19,888.6Total 12,058.4 28,388.8 40,447.2Appendices139

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsFTE of non-teaching staff in schools by classification and sex on pay as at June 2008Classification Level Males Females TotalSchool Services Officer (SSO) SSO3–8 17.6 55.1 72.7SSO3–7 28.4 94.1 122.5SSO3–6 47.0 276.1 323.1SSO2–5 64.9 451.2 516.2SSO2–4 106.6 557.7 664.3SSO2–3 136.3 910.0 1,046.2SSO1–2 224.4 1,759.4 1,983.7SSO1–1 549.7 5,762.5 6,312.1Subtotal 1,174.8 9,866.0 11,040.8VPS staff Allied Health 4 27.2 78.2 105.4Allied Health 3 23.9 166.7 190.6Allied Health 2 5.0 80.3 85.3VPSG6 – 6.0 6.0VPSG5 6.2 29.3 35.5VPSG4 1.6 4.1 5.7VPSG3 – 4.7 4.7VPSG2 1.0 5.6 6.6VPSG1 1.0 1.0 2.0Subtotal 65.9 375.9 441.8Other – 0.1 0.1Total 1,240.7 10,242.0 11,482.7FTE of staff on pay by location as at June 2008LocationFTESchoolTeaching 40,447.2Non-teaching 11,482.7Subtotal 51,929.9Central office and regions 2,091.4Total 54,021.3140DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsFTE of staff in non-school locations and statutory authorities by classification and sex on payas at June 2008Classification Males Females TotalTeaching staff 54.1 72.0 126.1Executive officer Secretary 1.0 – 1.0EO1 2.0 1.0 3.0EO2 24.0 12.0 36.0EO3 12.8 10.0 22.8Subtotal 39.8 23.0 62.8VPS staff Senior technical specialists 1.8 2.0 3.8VPSG6 113.7 106.6 220.3VPSG5 181.2 357.9 539.1VPSG4 95.9 184.3 280.2VPSG3 88.6 240.7 329.3VPSG2 38.9 138.4 177.3VPSG1 2.8 7.8 10.6Graduate recruits – 6.0 6.0Allied Health 4 – 9.1 9.1Allied Health 3 2.8 59.9 62.7Allied Health 2 2.7 59.1 61.8Allied Health 1 – 1.8 1.8Subtotal 528.4 1,173.5 1,701.9Nurse 11.0 176.5 187.5Ministerial staff 1.0 1.0 2.0Other 2.0 9.1 11.1Total 636.3 1,455.1 2,091.4NoteA total of 22.8 FTE casual staff who were employed for the last pay period inJune in central and regional locations and classified as VPSG1–6, AH2–3 orNurse have not been included in the above table.‘Other’ includes child protection workers, juvenile justice workers, senior medicaladvisor, LOTE advisor, other miscellaneous classifications and appointees to astatutory office, as defined in the Public Administration Act 2004 (for example,persons appointed to a non-executive board member role, to an office ofCommissioner, or to a judicial office).Appendices141

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsVictorian Public Service staff on pay as at June 2008Employees(headcount)Full-time(headcount)OngoingPart-time(headcount)FTEFixed-term and casualFTEJune 2008 2,284 1,690 594 2,066 358June 2007 1,699 1,367 332 1,578 255June 2008 June 2007OngoingFixed-termand casualOngoingEmployeeEmployeeFTEFTE(headcount)(headcount)FTEFixed-termand casualFTEGenderMale 606 590 67 579 569 56Female 1,678 1,476 291 1,120 1,009 199AgeUnder 25 36 34 60 32 31 4325–34 376 345 131 263 243 8835–44 506 447 50 370 335 4345–54 898 814 64 680 640 3755–64 435 398 52 327 306 43Over 64 33 28 1 27 23 1ClassificationVPSG1 10 10 5 12 12 4VPSG2 159 147 42 143 133 32VPSG3 303 283 57 269 255 46VPSG4 270 258 29 214 207 19VPSG5 535 510 67 432 416 44VPSG6 215 211 18 190 187 12Senior technical specialists 3 3 1 3 2 1Executives 63 63 – 58 58 –Graduate recruits – – 6 – – 8AH1 2 1 –* – – –AH2 122 98 50 57 46 41AH3 259 201 53 183 141 45AH4 131 111 3 136 119 2Nurses 205 164 26 – – –Other 7 6 1 2 2 1Note‘Headcount’ means the number of people employed where each person countsas an employee regardless of the number of hours engaged to work.FTE has been rounded to the nearest whole number.*Due to rounding this figure drops to 0.‘Casual’ means a person who is subject to clause 25, Casual Employees– Loading of the VPS Agreement 2006, or similar clauses in other relevantagreements. It includes a person employed on a sessional basis where suchprovision is made under an applicable industrial agreement.‘Other’ includes child protection workers, juvenile justice workers, seniormedical advisor, LOTE advisor and ministerial drivers.Age of staff for 2008 is calculated as at pay date 19 June 2008 and for 2007as at 21 June 2007.The increase in employment levels from June 2007 to June 2008 is a resultof machinery-of-government changes with the transfer of staff from DHS intothe Department.142DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNumber of executive officers classified by ‘Ongoing’ and ‘Special projects’All Ongoing Special projectsClass Number Variation Number Variation Number VariationSecretary 1 – 1 – – –EO1 3 – 3 – – –EO2 33 +8 32 +8 1 –EO3 20 -2 20 -2 – –Total 57 +6 56 +6 1 –Number of executive officers by sex for ‘Ongoing’ and ‘Special projects’OngoingSpecial projectsMale Female Vacancies Male Female VacanciesClass Number Variation Number Variation Number Number Variation Number Variation NumberSecretary 1 – – – – – – – – –EO1 2 – 1 – – – – – – –EO2 21 +4 11 +4 – 1 – – – –EO3 10 -1 10 -1 6 – – – – –Total 34 +3 22 +3 6 1 – – – –Number of executives2008 2007Executives with remuneration over $100,000 (refer to note) 47 50Add vacancies (see table above) 6 7Executives employed with total remuneration below $100,000 10 –Accountable officer (Secretary) 1 1Less separations 7 7Total executive numbers at June 57 51NoteFigures above do not include Victorian Curriculum and Assessment Authorityand Victorian Registration and Qualifications Authority executives.Figures include early childhood development staff from DHS who merged withthe Department of Education to form the Department of Education and EarlyChildhood Development as a result of machinery-of-government changes in 2007.Number of executive officers in the Department’s portfolio entitiesTotal Vacancies Male FemalePortfolio agencies Number Variation Number Variation Number Variation Number VariationVictorian Curriculum andAssessment AuthorityVictorian Registration andQualifications Authority4 -1 1 +1 4 -1 – –2 +1 – – 1 – 1 +1Total 6 – 1 +1 5 -1 1 +1Appendices143

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsSenior officers as at 30 June2008The Department’s organisational chart as of30 June 2008 appears on page 15.Addresses of the Department’s key businessareas are provided below. The telephonenumber for all sections of the Departmentis (03) 9637 2000, except where otherwisespecified.Department of Education andEarly Childhood Development2 Treasury PlaceEast Melbourne Victoria 3002Professor Peter DawkinsSecretaryOffice for Government SchoolEducation1st floor, 33 St Andrews PlaceEast Melbourne Victoria 3002Mr Darrell FraserDeputy SecretaryGroup CoordinationMs Dina GuestGeneral ManagerStudent Wellbeing and SupportMr Ian ClaridgeAssistant General Manager(*Acting) Ms Kristine ArcaroAssistant General ManagerEducation Regeneration and CommunityPartnershipsMr John AllmanGeneral ManagerSchool Workforce Reform and SchoolImprovementMs Judy PetchGeneral ManagerMs Louise McDonald(*Acting) Assistant General ManagerSchool ImprovementMs Raylene Dodds(*Acting) Assistant General ManagerSchool Workforce ReformStudent Learning ProgramsMs Dianne PeckGeneral ManagerMs Carol KellyAssistant General ManagerTargeted ProgramsRegionsRegional office contact details appear onpage 50.Broadmeadows RegenerationMr David BrooksProject DirectorOffice for Policy, Research andInnovationLevel 3, 33 St Andrews PlaceEast Melbourne Victoria 3002Dr Dahle SuggettDeputy SecretaryEducation Policy and ResearchMr Ian BurrageGeneral ManagerMs Kerryn RozenbergsAssistant General ManagerYouth TransitionsMr George McLeanGeneral ManagerMs Janet ThompsonAssistant General ManagerSystem PolicyMr John SullivanGeneral ManagerMr Edmund MissonAssistant General Manager144DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsInnovation and Next PracticeMs Diane JosephGeneral ManagerMs Katrina ReynenAssistant General ManagerInternational EducationMs Sue ChristophersGeneral ManagerCommonwealth–State RelationsMr John McCarthyGeneral ManagerOffice for Planning, Strategy andCoordination1st floor, 2 Treasury PlaceEast Melbourne Victoria 3002Mr Tony CookDeputy SecretaryExternal Relations and StrategicCoordinationMr Colin TwisseGeneral ManagerMs Susan Dennett(*Acting) Assistant General ManagerMr Steve Metcalfe(*Acting) Assistant General ManagerStatewide Outcomes for ChildrenMr Andrew Abbot(**Acting) General ManagerCommunicationsMs Julie AllistonGeneral ManagerCorporate Planning, Strategy and AuditMr James KellyGeneral ManagerData and EvaluationDr Sara GloverGeneral ManagerOffice for Resources andInfrastructure1st floor, 2 Treasury PlaceEast Melbourne Victoria 3002Mr Jeff RosewarneDeputy SecretaryChief Operating OfficerCorporate ServicesMs Gail HartGeneral ManagerResources and Infrastructure StrategyMr Jim MilesGeneral ManagerMr Dean TigheAssistant General ManagerHuman ResourcesMr Tony BugdenGeneral ManagerMr Rex HardmanAssistant General ManagerPolicy and Employee RelationsMr Ian Dawes(*Acting) Assistant General ManagerStrategy Planning and DevelopmentEducation Chief Information OfficerMr Adam TodhunterFinancial ServicesMs Claire BritchfordChief Finance OfficerMr Nino NapoliAssistant General ManagerSchools Resource AllocationMr Ron Cooper-ThomasAssistant General ManagerAccounting Policy and TaxationMr Wayne BenbowAssistant General ManagerBudget and ReportingAppendices145

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsInfrastructureDr Peter StewartGeneral ManagerMs Andrée ButlerAssistant General ManagerPlanning and ProvisionMr Paul JonesAssistant General ManagerFacilities and InfrastructureInformation TechnologyMr Erle BourkeGeneral ManagerMr Steve LoquetAssistant General ManagerInformation TechnologyOffice for Children and EarlyChildhood Development1st floor, 2 Treasury PlaceEast Melbourne Victoria 3002Mr Michael White(**Acting) Deputy SecretaryEarly Childhood Strategic Policy andProjectsMs Susan McDonaldGeneral ManagerVacantAssistant General ManagerMs Dawn DavisAssistant General ManagerEarly Years Learning FrameworkMs Connie ForbesAssistant General ManagerLegislation and Regulation ReformEarly Childhood ProgramsMs Jeanette NagorckaGeneral ManagerVacantAssistant General ManagerOperationsMs Madeleine SmithGeneral ManagerMs Lesley Hubble(*Acting) Assistant General ManagerMerit Protection BoardsLevel 9, 35 Spring StreetMelbourne Victoria 3000(03) 9651 0290Mr Peter Hibbins***Senior ChairpersonVictorian Curriculum and AssessmentAuthority41 St Andrews PlaceEast Melbourne Victoria 3002(03) 9651 4300Mr John FirthChief Executive OfficerVictorian Registration andQualifications AuthorityLevel 6, 35 Spring StreetMelbourne Victoria 3000(03) 9637 2806Ms Lynn GloverDirector* Acting assignment by a non-substantive executive officer** Acting assignment by a substantive executive officer*** Governor-in-Council appointee146DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsAppendix 5Statutory bodiesStatutory bodies are authorities, boardsand other entities established under an Actof Parliament for a specific purpose. Fivestatutory bodies fall under the educationportfolio and two fall under the children andearly childhood development portfolio. Thefunctions, powers, membership and otherdetails relating to each body are outlined inthe relevant Act. Some of the bodies produceseparate annual reports for Parliament, whileinformation about the activities of the otherbodies is included in this report. The tablebelow lists the statutory bodies within thetwo portfolios as at 30 June 2008, the Actunder which each body was established andthe reporting method for each body. Staff ofsome of these bodies are on the Department’spayroll, as reflected in the workforce data onpages 139–146.The Registered Schools Board and theVictorian Qualifications Authority wereabolished on 1 July 2007 when the Educationand Training Reform Act 2006 was proclaimed.The functions of those two bodies are nowcarried out by the VRQA. The Children’sServices Coordination Board and the VictorianChildren’s Council were transferred fromthe human services portfolio as part of themachinery-of-government changes made inAugust 2007.Merit Protection BoardsThe Merit Protection Boards were establishedin 1993 under the Teaching Service Act 1981and are currently empowered by the Educationand Training Reform Act 2006 to:• advise the Minister about principles of meritand equity to be applied in the teachingservice• hear reviews and appeals in relation todecisions made under the EducationTraining and Reform Act 2006 (exceptPart 2.4, Division 10) or any other Act• advise the Minister or the Secretary aboutany matter referred to them by the Ministeror the Secretary relating to merit and equityin the teaching serviceStatutory bodiesBody Act of Parliament Portfolio(s) Annual reportChildren’s Services CoordinationBoardChild Wellbeing and Safety Act 2005Children and Early Childhood DevelopmentCommunity Services*See page 154Disciplinary Appeals Boards Education and Training Reform Act 2006 Education See page 152Merit Protection Boards Education and Training Reform Act 2006 Education See page 147Victorian Children’s Council Child Wellbeing and Safety Act 2005 Children and Early Childhood DevelopmentCommunity Services*See page 153Victorian Curriculum andAssessment AuthorityEducation and Training Reform Act 2006EducationSkills and Workforce Participation*Separate reportVictorian Institute of Teaching Education and Training Reform Act 2006 Education Separate reportVictorian Registration andQualifications AuthorityEducation and Training Reform Act 2006EducationSkills and Workforce Participation*Separate report* Refer to the administration of Acts in Appendix 10 for details regarding the allocation of responsibilities.Appendices147

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations• hear reviews and appeals in relation toany decision prescribed by the regulationsor Ministerial Order to be a decision inrespect of which there is a right of reviewby or appeal to a Merit Protection Board• to hear reviews and appeals in relationto any decision of the Secretary if theSecretary has delegated his or her functionor power to hear reviews and appeals to aMerit Protection Board.The Senior Chairperson, Mr Peter Hibbins, andthe Secretary’s nominee, Mr Gavan Schwartz,are full-time members of the Merit ProtectionBoards. Ms Beverly Trease is the Registrar.There are seven Merit Protection Boards. Eachof these Boards comprises a chairperson,nominated by the Minister, a nominee of theSecretary and a teacher nominated by theMinister. Most Board members are part-time.The Senior Chairperson establishes Reviewof Action Boards to hear and determinegrievances from members of the VPS in theDepartment. These boards generally comprisethree members appointed by the SeniorChairperson and include suitably trained andexperienced members of the VPS. The Reviewof Action Boards make recommendations tothe Senior Chairperson who, in turn, makesrecommendations to the Secretary of theDepartment.The Merit Protection Boards and Reviewof Action Boards provide an independentmechanism to hear appeals and grievances foremployees of the Department and associatedstatutory authorities in education.Appeals and grievances include transfer andpromotion, incapacity, grievances of a generalpersonal nature, including sexual harassmentand discrimination, and appeals in relation topolice records checks. Appeals and grievancescan be heard in the metropolitan area andregional centres, as appropriate.Access to the Merit Protection Boards isavailable to employees in the Department,including principals, teachers and schoolbasednon-teaching staff. Public servants,excluding executive officers, have access toReview of Action Boards.Members of the Merit ProtectionBoardsIn February 2008, after providing 14 years ofoutstanding service to the Merit ProtectionBoards, Mr Ian Adams retired and Mr PeterHibbins was appointed by Governor-in-Councilas his replacement.Members of the Merit Protection Boards andReview of Action Boards have a duty to act asindividuals in an independent and objectivemanner in fairly hearing and determiningappeals and grievances. The hearingprocedures of both Boards are consistentwith the principles of procedural fairness.148DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsMembers of the Merit Protection BoardsDate first appointedDate term expiresSenior Chairperson (full-time)Mr Ian Adams 5 October 1993 Retired February 2008Mr Peter Hibbins 3 March 2008 31 July 2011Secretary’s nominee (full-time)Mr Gavan Schwartz 22 September 2004 21 September 2010ChairpersonsMs Debbie Meirisch Wheelers Hill Primary School 15 April 1997 21 September 2010Ms Lorraine Dell Ormond Primary School 01 January 2000 21 September 2010Ms Catherine Christensen Rosamond Special School 22 September 2004 21 September 2010Ms Leonie Fitzgerald Dandenong South Primary School 22 September 2004 21 September 2010Mr Wayne Hill Merrilands College 22 September 2004 21 September 2010Ms Sharon Walker Wembley Primary School 22 September 2004 21 September 2010Secretary’s nomineesMs Vincenzina Calabro Noble Park English Language Centre 22 September 2004 21 September 2010Ms Cheryl Judd Preston Girls Secondary College 22 September 2004 21 September 2010Ms Angeliki Karvouni Southern Metropolitan Region 22 September 2004 21 September 2010Ms Karen O’Dowd Altona Green Primary School 22 September 2004 21 September 2010Mr Wayne Smith Eumemmerring Secondary College 22 September 2004 21 September 2010Mr Peter Rock Cobden Secondary College 22 September 2007 21 September 2010Minister’s nomineesMs Jennifer Pringle Mount Waverley Secondary College 01 January 2001 Resigned March 2008Mr Robert Bertagnolio Altona Secondary College 22 September 2004 21 September 2010Ms Eileen O’Brien Croydon Secondary College 22 September 2004 21 September 2010Ms Mary-Anne Pontikis Meadow Heights Primary School 22 September 2004 21 September 2010Ms Gail Shaw Sunshine North Primary School 22 September 2004 21 September 2010Ms Sandra Greenhill Montmorencey Secondary College 22 September 2007 21 September 2010Mr Nuccio Gurciullo Mac.Robertson Girls High School 22 September 2007 21 September 2010Ms Joanna Young Keilor Downs Secondary College 22 September 2007 21 September 2010Secretary’s emergency nomineesMs Sheryl Skewes Sandringham Primary School 01 January 2000 21 September 2010Mr John Baston Croydon Secondary College 22 September 2004 21 September 2010Mr Ian Hall Gippsland Region 22 September 2004 21 September 2010Mr Mathew Underwood Campbells Creek Primary School 22 September 2007 21 September 2010Minister’s emergency nomineesMs Clare Berger Gilmore Girls College 22 September 2007 21 September 2010Mr Shane Crerar Gisborne Secondary College 22 September 2007 21 September 2010Ms Janet Evison Kunyung Primary School 22 September 2007 21 September 2010Mr Michael Rogan Yarraville West Primary School 22 September 2007 21 September 2010Appendices149

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsOther activitiesThe Merit Protection Boards provided advice tothe Department on merit and equity issues inrelation to major policy initiatives in responseto requests from the Department as well asadvice when existing policies and procedureswere being reviewed.The Senior Chairperson and the Secretary’snominee accepted invitations to addressgroups of principal class officers, field officersof the principals’ associations, school serviceofficer networks and regional personnel.In October 2007, the Board conducted aseminar in Melbourne for newly appointedand re-appointed Board members at whichthe roles, structure, membership of Boards,responsibilities of Board members and thehearing process were discussed.In May 2008, the Board conducted a halfdayseminar in Melbourne for all membersof the Merit Protection Boards and Reviewof Action Boards. At this seminar the role,responsibilities and future of the Boardswere discussed.Information is available on the Merit ProtectionBoards’ website in relation to the appealand grievance process, as well as the MeritProtection accreditation programs. Thewebsite address is .The Senior Chairperson and the Secretary’snominee attended the National PublicSector Appeals Conference held in Perth inSeptember 2007.Appeals and grievancesTeaching serviceBreakdown of personal grievances received fromteaching service, July 2007 – June 2008Selection 5%Leave 15%Salary and allowances 6%Classification 2%Condition 72%During the year to 30 June 2008, theMerit Protection Boards for the teachingservice received a total of 140 appeals andgrievances, including 30 selection grievances,one discipline and 109 personal grievances.Of the 140 grievances received, 77 wereconciliated, withdrawn, lapsed or pending, orthere was no jurisdiction for the Board to hearthem. Sixty-three and grievances were heardand 35 (56 per cent) were upheld.Selection grievances received for this yearwere approximately the same as in theprevious year and, of the 16 heard, 50 per centwere upheld. There were 109 personalgrievances received, compared with 110 forthe previous year and, of the 46 heard, 58 percent were upheld.Teaching service – appeals and grievances, 2007–08Category Upheld Disallowed Withdrawn Pending Nojurisdiction,out of timeor lapsedConciliated Received TotalM F M F M F M F M F M F M FPromotion 3 5 7 1 4 2 1 – 3 4 – – 18 12 30Incapacitated officer – – 1 – – – – – – – – – 1 – 1Personal 6 21 6 13 11 18 4 5 5 6 2 12 34 75 109Total 9 26 14 14 15 20 5 5 8 10 2 12 53 87 140150DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsThere was a wide range of issues raisedin personal grievances. The majority ofgrievances concerned teachers and schoolservices officers with compassionate transferstatus and excess status not being managedin accordance with Department policy. Othermatters related to leave, especially therefusal to grant long service leave andleave without pay.Public sectorThere were 16 grievances received from publicservants – four selection and 12 personalgrievances, which is almost the same numberand type of grievances received in theprevious year. Of the 16 grievances receivedfrom the VPS, seven were heard and one(14 per cent) was upheld. The majority of theissues raised in personal grievances relatedto leave, range reviews, redeployment andgeneral employment issues.Merit protection accreditationIt is a requirement for all selection panels inthe Department to include a merit-accreditedemployee as a member of any selectionpanel. To facilitate this requirement, the MeritProtection Boards provide training in theprinciples of merit and equity for principal classofficers, teachers, school services officers andmembers of the public service. This year theBoards conducted 31 seminars and providedtraining for 1116 employees.Since the inception of these training programs,a total of 31,045 employees have been trained.This figure includes 1803 employees whohave retrained.Principal class officersOne hundred and twenty-five members ofthe principal class have been accredited intraining programs conducted by the Boardsin metropolitan and country centres this year.These accredited principal class officers areavailable to serve on principal class officerselection panels.Teachers and school servicesofficersSix hundred and eighty-eight members ofthe teacher class and 122 school servicesofficers were accredited in training programsconducted by the Boards in metropolitan andcountry centres this year. Teachers and schoolservices officers who have been accreditedare available to assist principals with personnelmanagement decision making in schoolswhere panels must include a merit protectionaccredited teacher.Public sector – appeals and grievances, 2007–08 Victorian Public Service staffCategory Upheld Disallowed Withdrawn Pending Lapsed Conciliated Received TotalM F M F M F M F M F M F M FSelection – – – 1 1 – – – – 2 – – 1 3 4Personal – 1 1 5 1 1 1 1 – 1 – – 3 9 12Total – 1 1 6 2 2 1 1 – 3 – – 4 12 16Appendices151

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsNumber of employees trained July 2007 – June 2008 by region (includes reaccreditation)Region Teachers Principal class SSO VPS TotalBarwon South Western 39 4 7 9 59Central – Corporate 0 0 0 108 108Eastern Metropolitan 131 21 9 9 170Gippsland 15 5 7 2 29Grampians 81 7 21 17 126Hume 40 16 9 5 70Loddon Mallee 74 27 17 7 125Northern Metropolitan 129 28 23 12 192Southern Metropolitan 55 2 10 5 72Western Metropolitan 124 15 19 7 165Total 688 125 122 181 1116Members of the Victorian PublicServiceDuring 2007–08, 181 VPS employees wereaccredited. Accredited VPS employees areavailable to assist on panels in decisionmaking concerning selection. The Board alsoran three training programs for public servantswho worked in DHS prior to the establishmentof the new Department.Disciplinary Appeals BoardsThe Disciplinary Appeals Boards wereestablished in 2005 following an amendmentto the Teaching Service Act 1981 and areempowered under the Education and TrainingReform Act 2006 to hear and determineappeals in relation to decisions of theSecretary made under section 2.4.6.1.The Senior Chairperson of the DisciplinaryAppeals Boards is the Senior Chairperson ofthe Merit Protection Boards. In this role theSenior Chairperson administers the DisciplinaryAppeals Boards and selects members toconstitute the Boards as required. The MeritProtection Boards staff provide administrativesupport to the Disciplinary Appeals Boards.In May 2005, the following Board memberswere appointed for an initial five-year periodafter calling for expressions of interestthrough advertisement. All members are calledupon on a sessional basis.The Disciplinary Appeals Boards had twoappeals pending at the start of the reportingperiod. One of these was withdrawn and theother was upheld. Four appeals were receivedin 2007–08. One of these was withdrawn andthree are pending.152DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsMembers of the Disciplinary Appeals BoardsDateappointedDate term expiresChairspersons, nominated by the Secretary, were appointed underSections 75D(2)(a) and 75E of the Teaching Service Act 1981.It is a requirement that they have been admitted to legal practice inVictoria for not less than five years.Ms Judith Benson May 2005 April 2010Dr Ian Freckelton SC May 2005 April 2010Mr Geoffrey Gibson May 2005 April 2010Mr Peter Harris May 2005 April 2010Ms Clare Lethlean May 2005 April 2010Mr Rohan Millar May 2005 April 2010Mr Damian Murphy May 2005 Resigned December 2006Mr Peter Rose May 2005 April 2010Ms Elspeth Strong SC May 2005 April 2010Mr Peter Wills May 2005 April 2010Minister’s nominees, who are officers in the teaching service,were appointed under Sections 75D(2)(b) and 75E of the TeachingService Act 1981.Mr Ross Adamson May 2005 April 2010Ms Moira Findlay May 2005 April 2010Mr David Finnerty May 2005 April 2010Ms Wayne Hill May 2005 April 2010Ms Angeliki Karvouni May 2005 April 2010Ms Denise Leggett May 2005 April 2010Ms Anne Longmire May 2005 Resigned October 2005Mr Brian O’Dea May 2005 April 2010Ms Mary-Anne Pontikis May 2005 April 2010Mr Paul Rose May 2005 April 2010Mr Steven Silestean May 2005 April 2010Secretary’s nominees, who have knowledge and experience ineducation, education administration or public sector administration,were appointed under Sections 75D(2(c) and 75E of the TeachingService Act 1981.Mr Brian Burgess May 2005 April 2010Mr James Davidson May 2005 April 2010Ms Leonie Fitzgerald May 2005 April 2010Mr Gregory Gibbs May 2005 April 2010Ms Avis Grahame May 2005 April 2010Victorian Children’s CouncilThe Victorian Children’s Council wasestablished by the Victorian Government underthe Child Wellbeing and Safety Act 2005 tosupport the Premier, the Minister for Childrenand Early Childhood Development, and theMinister for Community Services with expertindependent advice relating to policies andservices that enhance the health, wellbeing,development and safety of children.The Victorian Children’s Council wasestablished in response to the 2004 report ofthe Premier’s Children’s Advisory Council.The Victorian Children’s Council is made upof recognised experts in policies and servicesthat underpin and can improve child safety,health, development, learning and wellbeingacross Victoria. In 2007–08, the VictorianChildren’s Council had 16 members.The Department’s Statewide Outcomes forChildren Division provides secretariat supportto the Victorian Children’s Council.In 2007–08, the Council held regularmeetings every two months, as well asadditional meetings when needed. Severalsub-committees were established to work onvarious reform areas including:• implementation and monitoring of theChildren, Youth and Families Act 2005• implementation of Victoria’s plan to improveoutcomes in early childhood under theNational Reform Agenda• the Children’s Services Legislative andRegulations Review• enhancing the skills of the early childhoodworkforce• the Early Learning and DevelopmentFramework.Mr Dale Hendrick May 2005 April 2010Mr Russell Isaac May 2005 April 2010Mr Eric Keenan May 2005 April 2010Mr David List May 2005 April 2010Mr Ian Martin May 2005 April 2010Ms Bronwyn Valente May 2005 April 2010Appendices153

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsVictorian Children’s Council membersas at 30 June 2008Ms Lynne WannanProfessor Frank Oberklaid(Deputy Chair)Mr Bernie Geary(Ex-Officio Member)Dr Maria ApostolopoulosMs Aileen AshfordMs Muriel BamblettDr Ray ClearyDr Don EdgarProfessor Gay EdgecombeMs Sue HarperMr Paul LinossierMr David PughMr Rob SpenceChair, Victorian Children’s councilDirector, Centre for CommunityChild HealthChild Safety CommissionerParent advocate and Board member,Kalparrin Early Child InterventionprogramChief Executive Officer, BethanyCommunity SupportChief Executive Officer, VictorianAboriginal Child Care AgencyChief Executive Officer, AnglicareVictoriaSocial policy and research consultantDepartment of Nursing and Midwifery,RMIT UniversityNational President, OMEP AustraliaChief Executive Officer, MacKillopFamily ServicesChief Executive Officer, St Luke’sAnglicareChief Executive Officer, MunicipalAssociation of VictoriaThe role of the Children’s ServicesCoordination Board is to coordinate the effortsof different programs and consider how to bestdeal with cross-portfolio issues. The Board’swork therefore includes identifying strategicopportunities for cross-agency collaboration,particularly regarding more integrated servicedelivery, monitoring Government activities andoverseeing interdepartmental mechanisms.The Children’s Services Coordination Boardreports annually to the Minister for Childrenand Early Childhood Development and theMinister for Community Services on Victoria’schildren and young people. In 2008, theVictorian Government published The State ofVictoria’s Young People Report 2007.The Statewide Outcomes for Children Divisionof the Department provides secretariat supportto the Children’s Services Coordination Board.The Children’s Services Coordination Boardmet three times in 2007.Ms Sandi de WolfChief Executive Officer, Berry StreetVictoriaChildren’s Services Coordination Board membersas at 30 June 2008Children’s Services CoordinationBoardThe Children’s Services CoordinationBoard brings together key decision makersin government departments to ensurecoordination of activities affecting children.The Board was established in 2005 underthe Child Wellbeing and Safety Act 2005. Itcomprises the Chief Commissioner for Policeand the Secretaries of the Departments ofPremier and Cabinet, Treasury and Finance,Human Services, Justice, Education and EarlyChildhood Development, and Planning andCommunity Development.Professor PeterDawkins (Chairperson)Ms Penny ArmytageMr Yehudi BlacherMr Grant HehirMs Christine NixonMs Helen SilverMs Fran ThornSecretary, Department of Education andEarly Childhood DevelopmentSecretary, Department of JusticeSecretary, Department of Planning andCommunity DevelopmentSecretary, Department of Treasury andFinanceChief Commissioner of Police,Victoria PoliceSecretary, Department of Premier andCabinetSecretary, Department of HumanServices154DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsAppendix 6Whole-of-government reporting on target groupsOn coming to office, the Government pledgeda whole-of-government reporting approachin relation to cultural diversity, women, youthand Indigenous affairs. This appendix provideshighlights of the Department’s commitmentsand priorities in these four areas for 2007–08and the Department’s performance againstrelevant performance outputs and measures.Cultural diversityEducation is seen as a key to social inclusionand offers the means to redressing factorscontributing to social exclusion. The Departmentis proud of supporting and valuing Victoria’sculturally and linguistically diverse communitiesby providing accessible and culturally inclusiveeducation and early childhood services.The Department recognises that someindividuals and groups face particularchallenges in education and in participatingin the community because of their cultural orlinguistic background. These individuals andgroups often need to be actively supported toparticipate and achieve learning success.Schools, including specialist languageschools and centres, help build proficiencyin English and other languages, and shapestudent attitudes to cultural diversity throughmulticultural education.The Department’s workforce management anddevelopment practices help to ensure that itsworkforce reflects the cultural and linguisticdiversity (CALD) of the community it servesand is well equipped to work with Victoria’sgrowing culturally, linguistically and faithdiversecommunity.Highlights• In 2007, 240 full-time equivalentmulticultural education aide positions werefunded across 458 schools, and 26 positionswere funded in English language centres.• Transition coordinators were provided toall English language schools and centresto assist students with their transition fromintensive ESL programs to mainstreamschools.• Over $980,000 was provided for interpretingand translation services to enablenon-English speakers to access informationin government schools.• The Department provided $40,000 infunding for Australian BreastfeedingAssociation projects. Some of this fundingwas used for women from a variety ofcultural backgrounds, including Vietnamese,Burmese, Lebanese and Indigenouswomen. Each project has led to differentoutcomes. For example, in Shepparton,networks and understanding of issuesfacing the Arabic-speaking communitywere developed. In Hobsons Bay,increasing awareness of the importance ofbreastfeeding and promoting the range ofsupports available to breastfeeding CALDmothers were the main outcomes.• The Department also provided $757,000in funding for the Supported Parenting andPlaygroup initiative. Some of this fundingwas used to establish supported playgroupstargeting CALD families and 12 CALDgroups have been established.• The School Compliance Checklist toolswere updated to reflect obligations underthe Victorian Charter of Human Rights andResponsibilities Act 2006 and the Racialand Religious Tolerance Act 2001.Appendices155

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations• A research project was initiated to identifyways to improve communications with CALDcommunities, including the developmentof a training package for Departmentalemployees.• The Department’s annual cultural diversitycalendar included staff celebration andrecognition of Victorian Cultural DiversityWeek, Refugee Week and Human RightsDay.• A cultural diversity plan was developedto ensure progress in the Department’sengagement with CALD individualsand communities. The plan sets outthe Department’s key commitments forstrengthening social inclusion, services andoutcomes for CALD communities over athree-year period. Key strategies includeproviding culturally appropriate training forstaff, ensuring accessible information on theDepartment’s services to CALD communitiesand building assessment of the effectivenessof services into program evaluation.Performance measuresThe Department’s key performance measureson cultural diversity relate to the provision ofboth intensive ESL support for new-arrivalstudents and ongoing ESL support foreligible students.In 2007, 91 per cent of eligible primarystudents in regular schools received ESLsupport, and 89 per cent of eligible secondarystudents in regular schools receivedESL support.These performance measures are reportedannually in the State Budget Papers.Further information on programs andachievements relating to cultural diversity iscontained in the sections on ESL (page 41)and Multicultural education (page 42), and inthe Diversity and equal opportunity section inAppendix 3 (page 134).WomenThe Department made major contributions tothe achievement of the priorities for women.These included those outlined in the ForwardPlan: Leading with Victoria’s Women 2004–2007 and in the Women’s Safety Strategy, inparticular the priorities related to education,work and economic independence.The Department’s services for women aimto equip girls and women with the educationthey need to have high-quality jobs, a full andcreative life, and opportunities to contributeto their communities. As an employer, theDepartment aims to provide a workingenvironment that is responsive to the needsof women.As part of its strategy to achieve sustainableequality for women, the Department providedfamily-friendly workplaces and work policiesthat accommodated women’s family and carerresponsibilities. Women have been activeusers of the Department’s carer and lactationrooms. Women were also the highest take-upgroup in many of the Department’s flexible workand leave options available in both schoolsand central and regional offices. Part-timeemployment, job share, working from home viause of telecommunications, purchased leaveand the utilisation of recreation leave on halfpay were all popular choices for female staff.Highlights• The Eleanor Davis School Leadershipprogram is a Women in Leadership initiativeand, together with programs such as theJulia Flynn program, is a key component ofthe Department’s Focus on Women strategy.Further information on these programs iscontained on page 134.• The Department’s funding to the AustralianBreastfeeding Association was usedto support projects targeting areas ofdisadvantage and young mothers as wellas CALD women to enhance breastfeedingrates.156DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations• In 2007–08, $30,000 was provided to thePost and Antenatal Depression Associationto assist in the establishment of post-nataldepression support groups in the initial 13Best Start sites (as mentioned on page 30).Performance measuresKey features of the Department’s progress ingirls’ education include the following:• the Years 7–12 apparent retention rate forgirls in Victoria was 87.24 per cent in August2007 compared with 80.1 per cent for girlsnationally (the apparent retention raterefers to the number of full-time students inYear 12 expressed as a proportion of thenumber of full-time students in Year 7 fiveyears earlier)• the Years 10–12 apparent retention rate forgirls in Victoria was 87.7 per cent in August2007 compared with 80.8 per cent forgirls nationally.Young peopleResearch shows that young people who areengaged with schooling until Year 12 havebetter long-term employment and economicand social outcomes. For this reason, theDepartment recognises the need to developand provide broad pathways for youngpeople in Victoria. Through the provision ofeducation and training services in schools,the Department makes a major contributionto the achievement of the following prioritiesfor young people:• inclusion – improving outcomes for allyoung people while narrowing the gapbetween those who do well and thosewho do not• diversity – recognising and respondingto the full diversity of young people andmaking services more responsive to youngpeople and their needs• collaboration – involving a wide range oforganisations from the public, voluntary,community and private sectors in orderto increase choice and secure the bestoutcomes for and with young people.Highlights• In 2007, through the Youth TransitionSupport Initiative, the Department assisted1108 young people who had disengagedfrom the education and training system toachieve a sustainable education, training oremployment outcome.• The LLENs re-engaged a further 5089 youngpeople with education or training.• The Department continued to offer, valueand promote the three Victorian Year 12qualifications, the VCE, the VCAL and theIB Diploma, and the number of studentsparticipating in each of these qualificationsincreased.Further information on achievements relatingto youth is contained on pages 52–57.Performance measuresThe Department’s key performance measuresfor young people are the Government’s targetsfor education. Details of progress towards thetargets are on page 18.Indigenous affairsThe Department recognises the importanceof working with the Indigenous community toimprove Indigenous students’ participation andachievement levels in education.Indigenous education initiatives are designedto support improved educational outcomes forIndigenous students and increase all students’knowledge and understanding of Indigenouscultures and issues.Highlights• Wannik: Learning Together – Journey toour Future was launched by the Ministerfor Education. Wannik is the Government’seducation strategy for Indigenous students.Appendices157

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsIt aims to reposition the education ofIndigenous students within all governmentschools and, through strong leadership,create a culture of high expectations.• Consistent with Wannik’s focus onimproving attendance and engagement,Portland Secondary College has focusedon engaging both students and parentsin education through the establishment ofits Cultural Resource Centre. This highlysuccessful initiative has resulted in improvedattendance rates and a drop in suspensionsfor Indigenous students.• Two major projects targeting literacy forIndigenous students have been initiatedin Gippsland. Targeted Reading Recoveryteachers in central Gippsland have seenmarked improvement in the literacy levels ofparticipating students, while literacy supportfor both students and parents in eastGippsland has also had a positive impact.• An equally successful approach has beenundertaken in the Loddon Mallee Region,where additional Literacy ImprovementTeam specialists have been employedto work in schools with high numbers ofIndigenous students.• The Department has funded ten hours offree kindergarten for 4-year-old Indigenouschildren who hold, or whose parents orguardians hold, an appropriate concessioncard. In addition, 100 children will benefit inthe 2008 school year from free kindergartenfor Indigenous 3-year-olds.• Early childhood scholarships aiming toincrease the number of Indigenous earlychildhood teachers were offered to13 students.• The Department provided funding forthe Supported Parenting and Playgroupinitiative, to establish supported playgroupstargeting Indigenous families. TwelveIndigenous groups were been established.Performance measuresThe Department collects data on theenrolments of Indigenous students in schools,by year level and school type, in Augusteach year. In 2007, there were 7595.1 FTEIndigenous students enrolled in governmentschools in Victoria, representing 1.4 per centof the student cohort.Further information on Indigenous programsand achievements is contained on pages 31–32and 39–40.158DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsAppendix 7Office-based environmental impactsThis appendix discloses the Department’soffice-based environmental impacts onenergy use, waste production, paper use,water consumption, transportation and greenpurchasing for its central and regional offices,as required by FRD 24 – Reporting of OfficebasedEnvironmental Impacts by GovernmentDepartments.Due to the 2007 machinery-of-governmentchange, the Department now includes theOffice for Children and Early ChildhoodDevelopment staff. These staff are currentlyco-located within DHS. Data for these staffis reported separately to enable comparableperformance.The data for 2006–07 reported centraland regional offices separately to enablecomparable performance. This data wasadded together to enable comparison with2007–08 data. The data is based on1,253.4 FTE at end June 2008 in centraland regional offices. The data does notinclude Office for Children and Early ChildhoodDevelopment staff or contract staff.The Department has implemented a numberof programs to reduce environmental impactsand more comprehensively collect datafor non-office facilities (schools). Theseinclude AussiVic, Ecologically SustainableDevelopment Guidelines, Schools WaterEfficiency program, Tool for Replication ofEnergy Efficiency in Schools and the EnergyReporting System.Central and regional officesEnergyThe Department reports on its energyconsumption in office facilities only.The data represented below was collectedthrough energy retailer billing informationand represents 100 per cent of sites and100 per cent of FTE staff.2006–07 2007–08Electricity Natural gas GreenPower Electricity Natural gas GreenPowerTotal energy usage segmented byprimary source (MJ)Greenhouse gas emissions associatedwith energy use, segmented by primarysource and offsets (t CO 2 -e)Percentage of electricity purchased asGreenPower7,564,463 225,023 1,324,640 7,914,180 366,009 1,657,1702,784 14 0 2,880 21 015% – – 17% – –Cost of GreenPower ($) 35,281 – – 42,139 – –Units of energy used per FTE (MJ/FTE) 7,669 – – 7,928 – –Units of energy used per unit of officearea (megajoules per m 2 )292 – – 341 – –Actions undertakenAwareness programsEnergy Performance ContractParticipant in Earth Hour, educational posters regarding ‘Switch-off’, CFLs and GreenPower.Scoping and tendering for Victorian Government’s Energy Performance Contract. Includes all tenancy andbase building energy and water-saving opportunities to be implemented during 2008–09.Appendices159

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsTargets• Reduce energy consumption per squaremetre by 20 per cent of 1999–2000consumption by 30 June 2010.• Purchase 25 per cent GreenPower aspercentage of total electricity consumptionby 30 June 2010.Explanatory notes• The overall increase in energy usage ispartly due to the inefficient heating andcooling system in the Gippsland RegionalOffice.• The increase in natural gas usage is due tothe Northern Metropolitan Regional Officerelocating in March 2007 to a site suppliedwith natural gas.• Energy and water data for the NorthernMetropolitan Regional Office is calculated asa percentage of meter reading for CoburgSenior High School, the Island School andthe Victorian Curriculum and AssessmentAuthority.• The increase in electricity used perunit of office area is due to down-sizingthe Northern Metropolitan and BarwonSouth-Western regional offices andassociated training facilities.• The 2007– 08 target to reduce energyconsumption per square metre by 20 percent of 1999–2000 consumption by30 June 2010 will be addressed throughenergy reduction initiatives.• The 2007– 08 target to purchase 25 per centof total electricity from GreenPower by30 June 2010 is on track.WasteThe triple waste system within theDepartment’s offices facilitates easysegregation of waste materials for recycling,composting or landfill.The data presented below is derived froma five-day waste audit conducted at fourCentral Office sites and a four-day wasteaudit conducted at Barwon South WesternRegional Office, covering over 70 per centof staff.Indicator 2006–07 2007–08LandfillCommingledrecyclingCompostLandfillCommingledrecyclingCompostTotal units of waste disposed of bydestination (kg/yr) 135,074Units of waste disposed of per FTEby destinations (kg/FTE) n/a n/a n/a24,339 70,811 13,877Total: 109,02719.42 56.49 11.07Total: 86.98Recycling rate (% of total waste) 90 78*Greenhouse gas emissions associatedwith waste disposal (t CO 2 -e)n/a 27* This figure would increase to 82 per cent if the following were included:Green Collect, Close the Loop (mobile phone, batteries, corks, toner cartridges) and shredding recycling.Actions undertakenTriple waste systeme-WasteThe system is in place in all central offices and was introduced as part of Green Star best endeavours at two new regionaloffice sites.Over 180 monitors, PCs, servers and printers were sent to Clearhouse Technology for green-friendly recycling.Approximately 900 monitors, PCs, printers and laptops were sent to schools as part of the RePC program.160DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsTargets• Make triple waste system available to80 per cent of central and regional officesby 30 June 2009.• Reduce total waste generated per FTE to85 kilograms by 30 June 2009.• Divert 70 per cent of waste from landfill by30 June 2009.Explanatory notes• The recycling rate percentage hasdecreased. This can partly be explained byimproved audit processes. The 2006–07audit was conducted over one day; the2007–08 audit was conducted over five days.• The 2007–08 target to reduce total wastegenerated per FTE by 10 per cent of2004–05 data was exceeded. TheDepartment achieved a 50 per centreduction (173.50 kg/FTE to 86.98 kg/FTE).• The 2007–08 target to divert 60 per centof waste from landfill was exceeded. TheDepartment diverted 78 per cent.PaperPaper consumption data is sourced frompurchases made through the whole-ofgovernmentstationery contract and someindependent stationery suppliers. (Someregional offices source paper from independentsuppliers to support local business).The Department is implementing multi-functiondevices incorporating printing, photocopyingand faxing, and an online record managementprogram that will assist paper reduction.Targets• Reduce paper consumption to 20 reamsper FTE by 30 June 2009 (approximately80 per cent of 2007–08 usage).• Purchase a minimum 95 per cent of copypaper with a recycled content of at least50 per cent.Explanatory notes• Paper consumption increased from 2006–07results. This can partly be explained by amiscalculation in 2006–07 independentstationery supplier data.• The 2007–08 target to reduce paperconsumption per FTE by 5 per cent of2004–05 consumption was exceeded.The Department achieved a 29 per centreduction.• The 2007–08 target to purchase a minimum95 per cent of A4 office paper with arecycled content of at least 50 per centwas not met. However, during 2007–08 theDepartment increased the purchase of A4office paper with a recycled content ofat least 50 per cent from 18 per cent to69 per cent.Indicator 2006–07 2007–08Total units of copy paper used (reams) 26,158 31,515Units of copy paper used per FTE (reams per FTE) 22 25Percentage 75–100% recycled content copy paper purchased (%) 15 48Percentage 50–74% recycled content copy paper purchased (%) 3 21Percentage 0–49% recycled content copy paper purchased (%) 82 31Actions undertakenDepartmental standards of A4 copy paperDuplex defaultPurchase of A4 copy paper through stationery suppliers is restricted to minimum 50 per centrecycled content.Multi-function devices installed throughout the Department are set to duplex default.Appendices161

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsWaterThe data below is based on mains water meterreadings at nine Departmental regional officesites covering 30 per cent of Departmentalstaff. Water consumption for the remaining70 per cent of staff in the Department’s CentralOffice is reported by the building owner, theDepartment of Treasury and Finance (DTF).DTF has advised that there has been anapproximate 22 per cent decrease in waterconsumption on the Treasury Precinctin comparison to 2006–07.Targets• Reduce water consumption to 10 kilolitresper FTE by 30 June 2009.• Install semi-waterless urinals atgovernment-owned Department buildingswhere appropriate by 30 June 2009.Explanatory notes• The 2007–08 target to implement actionsidentified in whole-of-government watertargets was achieved. Water-flow restrictorsand water-efficient showerheads anddishwashers were installed at all central andregional offices.• The 2007–08 target to improve collection ofwater data for central office was achievedas indicated in the table below.TransportThe Department’s fleet comprises 254vehicles, 81 per cent of which are operationalvehicles and the remainder executive fleet. Ofthe operational vehicles, 60 per cent are LPG,24 per cent are 4-cylinder petrol-fuelled, 9 percent are 6-cylinder dual petrol/LPG fuelledand 7 per cent are hybrid. The executive fleetcomprises 94 per cent 6-cylinder petrol-fuelledand 6 per cent hybrid/LPG vehicles.Targets• Reduce consumption of unleaded petrolused by the Department’s passenger vehiclefleet by 5 per cent compared to 2007–08 by30 June 2009.• Make Metcards and V/Line tickets availablefor business travel to all staff withinDepartmental divisions and regions by30 June 2009.Explanatory notes• The 2006–07 transport data was notreported due to its unreliability. Transportdata management has since improved.• The 2007–08 target to optimise theproportion of commuter trips taken onpublic transport, walking, cycling etc. of75 per cent of staff, in line with Governmentcommitment, was not met. However, theDepartment improved the overall percentageof staff commuting sustainably to and fromwork from 57 per cent to 63 per cent.Indicator 2006–07 2007–08Total units of metered water consumed by usage types (KL)7,098 4,305*Units of metered water consumed in offices per FTE (KL/FTE) 20 11Units of metered water consumed in offices per unit of office area(KL/m 2 ) 0.4785 0.4171*The significant reduction in water consumption may be attributed to the elevated water consumption in 2006–07 due to an approximate 2,500,000 litrewater leak at the Loddon Mallee Regional Office.Actions undertakenSmart metersEnergy Performance ContractInstallation of smart meters to all buildings and major end-users on the Treasury Precinct.Scoping and tendering for Victorian Government’s Energy Performance Contract. Includes all tenancy and basebuilding energy and water-saving opportunities to be implemented during 2008–09.162DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsOperational vehicles 2006–07 2007–08PetrolLPGTotal energy consumption by vehicles (MJ) n/a 10,547,039 12,960,017Total vehicle travel associated with entity operations (km) n/a 4,020,497 3,010,454Total greenhouse gas emissions from vehicle fleet (t CO 2 -e) n/a 771 841Greenhouse gas emissions from vehicle fleet per 1000 km travelled (t CO 2 -e) n/a 0.19 0.302006–07 2007–08Total distance travelled by aeroplane (km) n/a 2,117,880**2006–07 2007–08CBD Regional CBD RegionalPercentage of employees regularly (>75 per cent of work attendance days)using public transport, cycling, walking or car pooling to and from work orworking from home, by locality type78 12 89 21Actions undertakenHybrid vehicles Increased number of Toyota Prius Hybrid vehicles from 3 to 16.Dedicated LPG and dual fuel vehiclesEncouraged executive officers to purchaseenvironmental friendly vehiclesPublic transportIncreased numbers of dedicated LPG and dual fuel vehicles.Executive officers have purchased one LPG vehicle and four Toyota Prius vehicles.Encouraged all staff to consider the environment prior to requesting a pool vehicle.** Includes statutory authority dataGreenhouse gas emissionsThe data below is taken from the previoussections and brought together here to showthe Department’s greenhouse footprint.Target• To reduce the Department’s carbon footprintby 50 per cent by 2030.Indicator 2006–07 2007–08Total greenhouse gas emissions associated with energy use (t CO 2 -e) 2,798 2,901Total greenhouse gas emissions associated with waste production (t CO 2 -e) n/a 27Total greenhouse gas emissions associated with paper purchases (t CO 2 -e) n/a 149Total greenhouse gas emissions associated with water consumption (t CO 2 -e) n/a 10Total greenhouse gas emissions associated with vehicle fleet (t CO 2 -e) n/a 1,612Total greenhouse gas emissions associated with air travel (t CO 2 -e) n/a 652Greenhouse gas emissions offsets purchased (t CO 2 -e) n/a 1,612**In line with the Victorian Government’s commitment outlined in Our Environment, Our Future 2006, the Department of Sustainability and Environmentwill purchase offsets equivalent to the Department’s passenger vehicle emissions for the 2007–08 financial year.Actions undertakenAll the actions undertaken in the energy, waste and transport sectors will help to reduce the Department’s greenhouse gas emissions.Appendices163

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsPurchasingThe Department met the 2007–08 targetto incorporate environmental purchasing inprocurement planning and tender procedures.For example, environmental criteria andtheir respective weighting were applied tothe Department’s Notebook and CASESRefresh tenders. Both tenders includedenergy efficiency, reduced and recyclablepackaging and product recycling criteria. TheDepartment also met the 2007–08 target toimprove its consideration of environmentalimpacts in the selection of goods and services.For example:• the online purchasing system now restrictsthe purchase of copy paper to those with aminimum 50 per cent recycled content• the Department hosted a contracted supplierroadshow to demonstrate environmentallyfriendly stationery options, and workedwith the contracted supplier to ensureenvironmentally friendly stationery productswere easily identifiable in the onlinestationery catalogue• the Department’s internal catering servicereplaced polystyrene cups with crockery andpaper cups.Target• Development and implementation of theDepartment’s procurement policy by30 June 2009.Office for Children and EarlyChildhood DevelopmentDue to the machinery-of-government change,the Office for Children and Early ChildhoodDevelopment (OCECD) was transferred fromDHS to the new Department. OCECD staff arelocated in DHS-owned and leased buildings.Data for OCECD is based on informationprovided by DHS. OCECD comprises 7.86per cent of DHS FRD 24 data. Introductions toeach FRD 24 section are based on the wholeof DHS.Actions reported in the FRD 24 data are DHSinitiatives at OCECD sites.Targets apply to all of the Department,including DHS-owned and leased buildings.EnergyDHS consumes energy for a number ofdifferent uses, including office facilities,storage, archives, call centres, communityhousing precincts and public lighting.The data below was collected throughenergy retailer billing information andrepresents 100 per cent of office-based sitesand 100 per cent of FTE staff.Actions undertaken• Ecotracker: weekly smart metering andbase-level energy assessments in Bendigo.• Delamping: in hallways, offices and toilets inBarwon South Western Region.2006–07 2007–08Electricity Natural gas GreenPower Electricity Natural gas GreenPowerTotal energy usage segmented byprimary source (MJ)n/a n/a n/a 4,564,321 231,817 486,304Greenhouse gas emissions associatedwith energy use, segmented by primarysource and offsets (t CO 2 -e)Percentage of electricity purchased asGreenPowern/a n/a n/a 1,661 13 0n/a – – 9.63% – –Cost of GreenPower ($) n/a – – n/a – –Units of energy used per FTE (MJ/FTE) n/a – – 9,187 – –Units of energy used per unit of officearea (MJ per m 2 )n/a – – 483 – –164DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations• Lighting: control system installed inCheltenham, Footscray and Geelong.• Retrofitting: T8 lights replaced by T5adaptors in Cheltenham, Footscray andGeelong.• Computer night-time shut down initiative:communications of computer audits inBarwon South Western Region.• Printer rationalisation: reduced numbers ofprinters and faxes in Barwon South WesternRegion.• Hardware default modes: set to power-savemodes in all regions.• Energy audit recommendations: implementedrecommendations in Southern Metropolitan,Eastern Metropolitan and Hume regions.Targets• Reduce energy consumption per squaremetre by 20 per cent of 1999–2000consumption by 30 June 2010.• Purchase 25 per cent GreenPower aspercentage of total electricity consumptionby 30 June 2010.WasteThe waste generated by processes within DHSis divided into four general classes – landfill,compost, paper and recycling. DHS wastemanagement system was made availableto a greater proportion of Departmental staffin 2007–08, with most regional sites readyfor implementation. This program facilitates theeasy segregation of waste materials for paper,recycling, composting or landfill within theDepartment’s offices.The data below is derived from a one-daywaste audit conducted at 19 sites.Actions undertaken• DHS waste management system:introduced at 12 sites and now covers20 per cent of sites and 62 per cent ofoffice-based FTE.• Fluro-tube recycling: introduced in SouthernMetropolitan Region.• Mobile phone recycling: introduced inSouthern Metropolitan Region.• Toner cartridge recycling: cartridgesrecycled at all sites.• Secure document waste stream: securebins available in all DHS offices.• e-waste: all computers and printers recycledin all regions.Targets• Make triple waste system available to 80per cent of central and regional offices by30 June 2009.• Reduce total waste generated per FTE to85 kilograms by 30 June 2009.• Divert 70 per cent of waste from landfill by30 June 2009.Indicator 2006–07 2007–08LandfillCommingledrecyclingCompostLandfillCommingledrecyclingCompostTotal units of wastedisposed of by destination(kg/yr)Total units of wastedisposed of per FTE bydestinations (kg/FTE)n/a n/a n/an/a10,350 36,800 3,450Total 50,60018 64 6Total 88Recycling rate (% of totalwaste)Greenhouse gasemissions associated withwaste disposal (t CO 2 -e)n/a 73n/a 12Appendices165

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsPaperDHS is becoming more efficient in relationto paper utilisation. Additional programscommenced during the reporting period thatprovided additional reductions in consumption.Indicator 2006–07 2007–08Total units of copy paper used(reams)Units of copy paper used per FTE(reams per FTE)Percentage 75–100% recycledcontent copy paper purchased (%)Percentage 50–74% recycledcontent copy paper purchased (%)Percentage 0–49% recycled contentcopy paper purchased (%)n/a 6,857n/a 11.93n/a 3%n/a 83%n/a 11%Actions undertaken• Default paper: office paper policy to onlypurchase 50 per cent recycled paper contentas a minimum for A4 white copy paper.• Printer audit: set printer configurations toduplex to cope with non-Windows-basedprinter drives.Targets• Reduce paper consumption to 20 reamsper FTE by 30 June 2009 (approximately80 per cent of 2007–08 usage).• Purchase a minimum 95 per cent of copypaper with a recycled content of at least50 per cent.WaterThe data below is based on water meterreadings at 49 major Departmental sitescovering 59.69 per cent of FTE staff.Indicator 2006–07 2007–08Total units of metered waterconsumed by usage types (KL)Units of metered water consumedin offices per FTE (KL/FTE)Units of metered water consumedin offices per unit of office area(KL/m 2 )n/a 3,953n/a 7n/a 0.367Actions undertaken• Flow controllers: low-flow restrictors fittedfor all taps within DHS tenancies and AAAshowerheads installed.• Water efficient toilets: low-flow restrictors,dual flush and small cisterns installedat Fitzroy.Targets• Ruduce water consumption to 10 kilolitresper FTE by 30 June 2009.• Install semi-waterless urinals atgovernment-owned Departmental buildingswhere appropriate by 30 June 2009.TransportDHS’s fleet comprised 1720 vehicles, 93per cent of which are operational vehicles,and the remainder executive fleet. Of theoperational fleet, 28 per cent are LPG, 8per cent are hybrid, 37 per cent are 4-cylinderunleaded petrol, 18 per cent are 6-cylinderULP, 7 per cent are diesel buses and theothers include tractors, mowers, motorbikes,and amphibious and emergency vehicles.Targets• Reduce consumption of ULP used byDepartment passenger vehicle fleet by5 per cent compared with 2007–08 by30 June 2009.• Make Metcards and V/Line tickets availablefor business travel to all staff withinDepartmental divisions and regions by30 June 2009.Explanatory notes• OCECD’s fleet comprised 62 vehicles, 97per cent of which are operational vehicles,and the remainder executive fleet. Of theoperational vehicles, 41 per cent are LPG,34 per cent are 4-cylinder petrol-fuelled,18 per cent are 6-cylinder petrol-fuelledand 7 per cent are hybrid. The executivefleet comprised 50 per cent 6-cylinderpetrol-fuelled and 50 per cent hybridvehicles.166DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsExecutive and operational vehicles 2006–07 2007–08Petrol Diesel LP gas Petrol Diesel LP gasTotal energy consumption by vehicles (MJ) n/a n/a n/a 5,187,227 540,125 1,799,122Total vehicle travel associated with entity operations (km) n/a n/a n/a 1,351,693 109,040 509,332Total greenhouse gas emissions from vehicle fleet (t CO 2 -e) n/a n/a n/a 379 41 117Greenhouse gas emissions from vehicle fleet per 1000 kmtravelled (t CO 2 -e)n/a n/a n/a 0.281 0.372 0.2292006–07 2007–08Total distance travelled by aeroplane (km) n/a 116,0122006–07 2007–08CBD Metropolitan Regional CBD Metropolitan RegionalPercentage of employees regularly (>75% of workattendance days) using public transport, cycling, walking,or car pooling to and from work or working from home,by locality type.n/a n/a n/a 93 41 42Greenhouse gas emissionsThe data below is taken from the previoussections and brought together here to showOCECD’s greenhouse footprint.Actions undertaken• All the actions undertaken in the energy,waste and transport sectors will help toreduce OCECD’s impacts.Target• To reduce the Department’s carbon footprintby 50 per cent by 2030.PurchasingEnvironmental considerations are incorporatedinto the DHS purchasing and funding tendertemplate. DHS purchased the desired energyratings for all major electrical goods andintroduced a paper procurement policy withrecycled content requirements. Purchaseof stationery and office supplies maximisesthe use of environmentally preferred goods,including paper, printer and toner cartridges,personal computers and laptops.Target• Develop and implement the Department’sprocurement policy by 30 June 2009.Indicator 2006–07 2007–08Total greenhouse gas emissions associated with energy use (t CO2-e) n/a 1674Total greenhouse gas emissions associated with waste production (t CO2-e) n/a 12Total greenhouse gas emissions associated with paper purchases (t CO2-e) n/a 32Total greenhouse gas emissions associated with water consumption (t CO2-e) n/a n/aTotal greenhouse gas emissions associated with vehicle fleet (t CO2-e) n/a 537Total greenhouse gas emissions associated with air travel (t CO2-e) n/a 37Greenhouse gas emissions offsets purchased (t CO2-e) n/a 537**In line with the Victorian Government’s commitment in Our Environment, Our Future 2006, to offset the Victorian Government’s passenger vehicle fleetemissions, the Department of Sustainability and Environment will purchase offsets equivalent to the OCECD’s passenger vehicle emissions for the 2007–08financial year.Appendices167

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsAppendix 8Freedom of InformationDuring 2007–08, 195 requests were receivedfor documents under the Freedom ofInformation Act 1982 (the Act). Full accesswas granted for 62 requests and partial accessfor a further 66. Access was denied for 13requests and documents could not be locatedor did not exist for 23 requests. Thirteenrequests were withdrawn. At the end of thereporting period, there were 18 requests forwhich no decision had been made.Where access was not granted to a document,the major exemption categories in the Act usedin decision making were:• section 30 (opinions, advice andrecommendations that are against the publicinterest to release)• section 32 (legal professional privilege)• section 33 (to protect the privacy of thepersonal affairs of others)• section 34 (documents relating to businessor trade secrets)• section 35 (communications in confidence).Five applicants sought an internal review. Theoriginal decisions of three were fully upheldwhile one original decision was varied. Oneinternal review had not been completed atthe end of the financial year. There was oneappeal to the Victorian Civil and AdministrativeTribunal for review of a decision made underthe Act. This was withdrawn before a hearingwas scheduled.Publication requirementsThe information required to be publishedpursuant to section 7 of the Act is eithercontained below or is found in other partsof this report. This information relates to thefollowing agencies:• Department of Education and EarlyChildhood Development• Merit Protection Boards.Queries about the availability of and chargesfor other material prepared under Part II ofthe Act should be directed to the relevantauthorised officer (see table on page 169).Categories of documentsThe Department produces a large number ofdocuments in a decentralised record-keepingenvironment. Accordingly, the Departmentdoes not maintain a single, consolidated listof detailed categories of documents. TheDepartment maintains collections of policyfiles, transaction files and records and, wherenecessary, personnel records. A variety ofindexes and other search aids are usedby agencies. In general, files and recordsare retrieved through subject descriptors orpersonal name. Following are the generalcategories of documents maintained.Correspondence, administrative andpolicy documentsThe Department has a number of systemsin place for recording, sharing and trackingthese records. The Merit Protection Boardsare responsible for their own records. Regionaloffices and schools maintain their ownrecord-keeping systems. These are largelyindependent of the systems used by thecentral administration.Personnel documentsThe Department and the Merit ProtectionBoards maintain record-keeping systems fortheir employees, including, where appropriate,records for members of the teaching serviceand the VPS.Accounting recordsAccounting records are maintained on acomputerised accounting system. The records168DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsdeal with general ledger entries, accountspayable, payroll and other accountingfunctions. Some paper records are also kept.Freedom of InformationarrangementsAccess to recordsAll requests for access to records held byagencies are dealt with by the authorisedofficer of the appropriate agency (seetable below). Applicants seeking access todocuments held by agencies should attemptto specify the topic of interest rather than thefile series in which the applicant considers thedocument might exist. Assistance in specifyingthe topic is available from the authorised officer.Forms of request for accessApplicants are required by the Act to submitapplications requesting access to documentsin writing. No form of application is specified.A letter clearly describing the document(s)sought is sufficient. The letter should specifythat the application is a request made underthe Freedom of Information Act 1982 andshould not form part of a letter on anothersubject. The applicant should provide thefollowing information:• name• address• telephone number (business hours)• details of document(s) requested• form of access required – copies ofdocuments, inspection of file or other(specify).Correction of personal informationA request for correction or amendmentof personal information contained in adocument held by the agency must bemade in writing. It should specify particularsof how and why the person making therequest believes the information to beincorrect, incomplete, misleading or out ofdate, and specify the amendments they wishto make.Fees and chargesAn application fee is required unless evidenceof hardship is provided. Applicants areadvised that other charges may be made inaccordance with the Freedom of Information(Access Charges) Regulations 2004. Detailsof the fee and access charges can be found at.AppealsApplicants may appeal against a decisionmade in response to requests for access todocuments and amendment of records, oragainst the cost levied for allowing access todocuments. Information about the appropriateavenue of appeal will be conveyed to theapplicant in the letter advising of the initialdecision. Applicants are advised to consultPart VI of the Act for further information aboutappeal rights.Further information about Freedom ofInformation can be found on the Department’swebsite .Freedom of Information: authorised officersAgency Authorised officer Postal address TelephoneDepartment of Education and Early Childhood Development Neil Morrow GPO Box 4367, Melbourne 3001 (03) 9637 2670Merit Protection Boards Beverly Trease Level 9, 35 Spring Street, Melbourne 3000 (03) 9651 0290Appendices169

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsAppendix 9Statement of support to whistleblowersThe Department does not tolerate improperconduct by its employees or officers nor thetaking of reprisals against those who comeforward to disclose such conduct under theWhistleblowers Protection Act 2001 (the Act).The Department recognises the valueof transparency and accountability in itsadministrative and management practicesand supports the making of disclosures thatreveal corrupt conduct, conduct involvinga substantial mismanagement of publicresources, or a substantial risk to public healthand safety or the environment. The allegedconduct must be serious enough to constitute,if proven, a criminal offence or reasonablegrounds for dismissal to satisfy the Act.The Department assessed two disclosuresunder the Act in 2007–08. Of these twodisclosures:• both were protected disclosures• no matters were declined because thecomplainant could not substantiate them• no matters are awaiting substantiation bythe complainant.Of the complaints examined during the year:• one matter was referred to the Ombudsman,and later declined by the Ombudsman• one matter was declined by the Department.There were no matters taken over by theOmbudsman.Corrupt conductCorrupt conduct means:• conduct that adversely affects the honestperformance of functions• the dishonest performance of functions orperformance with inappropriate partiality• conduct that amounts to a breach ofpublic trust• conduct that amounts to the misuse ofinformation/ material acquired in the courseof one’s duties• a conspiracy or attempt to engage in theabove conduct.The reporting systemContact persons within the Departmentof Education and Early ChildhoodDevelopmentDisclosures of improper conduct or detrimentalaction by employees of the Department ofEducation and Early Childhood Developmentmay be made directly to the following officers:Protected Disclosure CoordinatorMr Colin TwisseGeneral ManagerExternal Relations and Strategic CoordinationTelephone: (03) 9637 3535Protected Disclosure OfficerMr Bryan SketchleyPrivacy OfficerTelephone: (03) 9637 3601All correspondence, telephone calls andemails from internal or external whistleblowerswill be referred to the Protected DisclosureCoordinator. Where a person is contemplatingmaking a disclosure and is concerned aboutconfidentiality, he or she can call the ProtectedDisclosure Coordinator and request a meetingin a discreet location away from the workplace.Employees can also obtain information aboutwhistleblower policy and procedures from theDepartmental regional offices.Alternative contact personsA disclosure about improper conduct ordetrimental action by employees of theDepartment may also be made directly tothe Ombudsman.170DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsThe Ombudsman Victoria459 Collins StreetMelbourne Victoria 3000(DX 210174)Internet: www.ombudsman.vic.gov.auEmail: ombudvic@ombudsman.vic.gov.auTelephone: (03) 9613 6222Appendices171

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsAppendix 10Portfolio responsibilitiesUntil 3 August 2007, the then Minister forSkills, Education Services and Employment,Jacinta Allan, MP, had the followingresponsibilities within the portfolio:• international education• student wellbeing and safety (includingtruancy and absenteeism, welfare officersand school nurses, immunisation, studentcritical incidents, school bullying and otherduty-of-care issues)• Program for Students with Disabilities• Education Maintenance Allowance• School Start Bonus• information technology infrastructure(delegated from the Minister for Education)• youth transition (including LLENs)• delivery of senior secondary certificatesoutside of school.The then Minister for Education, John Lenders,MP, had responsibility for all other matterswithin the portfolio.Since 3 August 2007, the Minister forChildren and Early Childhood Development,Maxine Morand, MP, has had the followingresponsibilities within the portfolio:• birth notification• early years services• youth services• children’s policy and research• Program for Students with Disabilities• Victorian Children’s Council• Children’s Services Coordination Board.The Minister for Education, Bronwyn Pike, MP,has responsibility for all other matters withinthe portfolio.The Acts of Parliament currently administeredby each Minister are as follows.Minister for Education• Education and Training Reform Act 2006except:– Division 5 of Part 2.2 (these provisionsare administered by the Ministerfor Children and Early ChildhoodDevelopment)– Section 2.5.3 insofar as it relates tointernational education, vocationaleducation and training, and seniorsecondary certificate delivery byregistered education and trainingorganisations and adult, community andfurther education providers; Chapter 3;Division 3 of Part 4.3 insofar as it relatesto courses delivered and qualificationsissued to students other than students inschools; Division 4 of Part 4.3; Division 5of Part 4.3; Division 6 of Part 4.3; sections4.4.1 and 4.4.2 insofar as they relateto courses delivered and qualificationsissued to students other than studentsin schools; section 4.4.3; section 4.4.4;section 4.4.5 insofar as it relates tocourses delivered and qualificationsissued to students other than students inschools; Part 4.5 insofar as it relates tocourses delivered to overseas students,other than overseas students in schools;section 4.6.3; section 4.6.4; section4.7.5; section 4.7.6; section 5.2.1(2)(d)(ii); section 5.2.1(2)(d)(iii); section 5.2.1(2)(d)(iv); Divisions 2 and 3 of Part 5.4; Part5.5; Schedules 3 and 4 (these provisionsare administered by the Minister for Skillsand Workforce Participation)– Sections 4.2.4, 4.2.5 and 4.2.8 are jointlyadministered with the Minister for Skillsand Workforce Participation172DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations– Chapter 1; Part 4.1; sections 4.2.1, 4.2.2,4.2.3, 4.2.6, 4.2.7; section 4.6.1; section4.6.2; Part 4.7 (except sections 4.7.1,4.7.5 and 4.7.6); Part 4.8; Part 4.9; Part5.1; Part 5.2 (except subparagraphs (i)to (iv) of section 5.2.1(2)(d) and section5.2.1(6)); section 5.3.1; section 5.3.2;section 5.3.3; Division 1 of Part 5.4;section 5.7.2; Part 5.8 (except section5.8.5); Part 5.9; Part 5.10 and Schedules2, 5 and 6 are jointly and severallyadministered with the Minister for Skillsand Workforce Participation• Mildura College Lands Act 1916• Royal Melbourne Hospital (Redevelopment)Act 1992:– Section 7 (the Act is otherwiseadministered by the Minister for Health)• Serpell Joint Schools Act 1981Minister for Children and EarlyChildhood Development• Child Wellbeing and Safety Act 2005 except:– Parts 4 and 5 (these Parts are jointly andseverally administered with the Ministerfor Community Services)– Part 6 (this Part is administered by theMinister for Community Services)• Children’s Services Act 1996• Education and Training Reform Act 2006:– Division 5 of Part 2.2 (the remainingprovisions of this Act are administeredby the Minister for Education andthe Minister for Skills and WorkforceParticipation)• Pre-school Teachers and Assistants (Leave)Act 1984Source: Administration of Acts General Order of 8 August 2007 andSupplement to the General Order of 8 August 2007Appendices173

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsAppendix 11Contracts and consultanciesUnder the Financial Management Act 1994the following distinction is made betweencontractors and consultants.Contractors:• provide goods, works or services thatimplement a decision• perform all or part of a new or existingongoing function to assist an agency carryout its defined activities and operationalfunctions• perform a function involving skills orperspectives that would normally beexpected to reside within the agency butat the time are unavailable.Consultants:• provide expert analysis and advice thatfacilitates decision making• perform a specific, one-off task or set oftasks• perform a task involving skills orperspectives that would not normally beexpected to reside within the agency.Disclosure of major contractsThe Department has disclosed all contractsgreater than $10 million in value that it enteredinto in 2007–08. The disclosed contracts canbe viewed on .During 2007–08, the Department commenced33 contracts to which the Victorian IndustryParticipation policy applied, totalling$274,840,820 in value. The contractsincluded 25 metropolitan contracts totalling$251,214,058, and eight regional contractstotalling $23,626,762.The commitments under the policy included:• an average level of local content of 82per cent of the total value of the contracts• 705 FTE jobs• benefits to the Victorian economy through:– development and implementation oftechnology in schools– professional development for staff– skills development through work oninfrastructure projects and participationin related training in OHS and varioustrade areas.The Department completed four contracts towhich the Victorian Industry Participationpolicy applied, totalling $12,607,056 in value.The contracts included two metropolitancontracts totalling $9,537,809 and tworegional contracts totalling $3,069,247.Compliance with the VictorianIndustry Participation policyThe Victorian Industry Participation Policy Act2003 requires public bodies and departmentsto report on the implementation of the VictorianIndustry Participation policy. Departmentsare required to apply the policy in all tendersover $3 million in metropolitan Melbourne and$1 million in regional Victoria.174DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsConsultancies in excess of $100,000Consultant Particulars Amount paid in2007–08Futurecommitments asat 30 June 2008University of SouthAustraliaQueensland Universityof TechnologyAllen Consulting GroupPriceWaterhouseCoopersTo review the support of Indigenous students at school, with particular focuson the operation of both the dedicated Indigenous workforce and the broadereducation workforce.To review culturally inclusive education, with particular focus on dedicatedprovision for Indigenous students through the Victorian College ofKoorie Education.To undertake the Next Phase Schools Workforce Development ResearchProject.To provide the Department with a methodology about how the impact of schoolinfrastructure investment on student outcomes can be measured.$307,105 $0$108,240 $0$55,732 $130,042$105,050 $0Total $576,127 $130,042Consultancies less than $100,000Number engaged 4Total cost $267,756Appendices175

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsAppendix 12Other statutory requirements and Department policiesBuilding Act 1993The Department conforms with therequirements of the Building Act 1993 andother statutory obligations with respect to theconstruction of new educational facilities andmodernisation. The school modernisationprogram and building compliance programprogressively ensure that existing buildingscomply with relevant legislative requirements.Purchasing and contractingThe Department promotes consistent ruleson probity and ethics in all of its purchasingand contracting arrangements, in line with theVictorian Government Purchasing Board’spolicy on probity. These rules ensure anequitable and sound purchasing processand the provision of equal opportunity forall parties. Compliance with these rules isguaranteed through routine internal audits andan accredited purchasing process.The Department promotes staff attendanceat training courses in purchasing, tenderingand contracting, and ensures that probity andethics are discussed at each session.National Competition PolicyIn 1995, the Commonwealth, State andTerritory governments agreed to implement theNational Competition Policy to promote greatercompetition and encourage economic growth.Three requirements of the policy are:• legislative reviews to eliminate restrictionson competition• assessment of new legislation andregulation to ensure continued compliancewith the policy• competitive neutrality to ensure consistencyin pricing of services and/or facilities.The Department has complied with therequirements of the National CompetitionPolicy and is continuing to report to theDepartment of Treasury and Finance asrequired regarding implementation.Legislative reviewsThe Department did not undertake any reviewsof legislation under the National CompetitionPolicy in 2007–08.Assessment of new legislation andregulationsAll new legislation and regulations enactedwithin the portfolio during 2007–08 weresubject to assessment against NationalCompetition Policy requirements to ensurecontinued compliance with the policy.Competitive neutralityCompetitive neutrality requires governmentbusinesses to ensure, where services maycompete with the private sector, that anyadvantages arising from their governmentownership are removed if they are not inthe public interest. The Department was notinvolved in any complaints for the year2007–08.Information privacyThe Department is committed to protectingthe privacy of personal and health information.Personal and health information is collectedand used by the Department to provideservices or carry out statutory functions.All of the Department’s central and regionaloffices, schools and funded services havebeen briefed on privacy laws, provided withtools to assist with compliance and assistedwith tailored privacy advice as required.176DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsAll of the Department’s funded serviceproviders are obliged contractually and byVictoria’s privacy laws to ensure that theycomply with the requirements of thelegislation.The Department’s Information Privacy policyis reviewed periodically, and is made widelyavailable. The Department works closelywith the Office of the Victorian PrivacyCommissioner and the Health ServicesCommissioner in providing privacy adviceand assistance, resources and referencematerials to ensure ongoing complianceacross the Department.The Department’s Freedom of Informationand Privacy Unit investigates and respondsto privacy complaints on a regular basis.Complaints are generally resolved at a locallevel; however, privacy complaints havebeen conciliated at the Office of the VictorianPrivacy Commissioner and the Victorian Civiland Administrative Tribunal.Appendices177

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsAppendix 13Risk management attestationI, Professor Peter Dawkins, certify that theDepartment of Education and Early ChildhoodDevelopment has risk management processesin place consistent with the Australian/New Zealand Risk Management Standard4360:2004 and that an internal control systemis in place that, subject to testing for operationstransferred to the Department in 2007–08,enables the executive to understand, manageand satisfactorily control risk exposures.The Portfolio Audit Committee verifiesthis assurance; that the risk profiles of theDepartment of Education and Early ChildhoodDevelopment have been critically reviewedwithin the last 12 months and that stepshave been taken to review and manage risksover the next reporting period for operationsthat have been the subject of machinery-ofgovernmenttransfer in 2007–08.Professor Peter DawkinsSecretaryDepartment of Education and Early ChildhoodDevelopmentAugust 2008The Portfolio Audit CommitteeThe Portfolio Audit Committee is a forum formonitoring and oversight of governance, riskmanagement, audit and business assuranceactivity across the education and earlychildhood development portfolio, with a focuson functions and processes affecting theentire portfolio.The committee comprises three independentmembers and two internal members.Portfolio Audit Committee membersIndependentMs Elizabeth Alexander AM (Chair)Mr John WarburtonMr John ThomsonInternalMr John AllmanMr Jim MilesThe main responsibilities of the committeeare to:• provide advice to the Secretary that keyrisk areas within the Department and thoseincluded in the Portfolio Audit Plan haveappropriate management controls in place• provide information to the statutory authorityaudit committees to facilitate monitoringand further action on significant risks to theportfolio that are within their sphere of control• communicate with and receive reports fromthe statutory authority audit committees onissues of governance, risk management,audit and business assurance for which thecommittees have common interest• advise the Secretary that the internalprocesses of the Department are operatingat an acceptable level of risk• advise the Secretary that appropriate controlsare in place to meet external regulatory andpublic accountability requirements• use internal audit to achieve appropriatelevels of control and risk tolerance.178DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsAppendix 14Disclosure index and additional informationThe Annual Report of the Department ofEducation and Early Childhood Developmentis prepared in accordance with all relevantVictorian legislation. This index wasprepared to facilitate identification of theDepartment’s compliance with statutorydisclosure requirements.Disclosure indexLegislation Requirement PageReport of operationsCharter and purposeFRD 1 22B Manner of establishment and the relevant Ministers 10FRD 22B Objectives, functions, powers and duties 10FRD 22B Nature and range of services provided 10Management and structureFRD 22 B Organisational structure 15Financial and other informationFRD 8A Budget portfolio outcomes 124–30FRD 10 Disclosure index 179–80FRD 12A Disclosure of major contracts 174–75FRD 15B Executive officer disclosures 143FRD 22A Statement of availability of other information 180–81FRD 22B Operational and budgetary objectives and performance against objectives 19–28FRD 22B Employment and conduct principles 133–36, 147–52FRD 22B Occupational Health and Safety policy 136–38FRD 22B Summary of the financial results for the year 16–17FRD 22B Significant changes in financial position during the year 16–17FRD 22B Major changes or factors affecting performance 19–28FRD 22B Subsequent events 118FRD 22B Application and operation of the Freedom of Information Act 1982 168–69FRD 22B Compliance with building and maintenance provisions of the Building Act 1993 176FRD 22B Statement on National Competition policy 176FRD 22B Application and operation of the Whistleblowers Protection Act 2001 170–71FRD 22B Details of consultancies over $100,000 174–75FRD 22B Details of consultancies under $100,000 174–75FRD 24B Reporting of office-based environmental impacts 159–67FRD 25 Victorian Industry Participation policy disclosures 174FRD 29 Workforce data disclosures 139–42Appendices179

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsDisclosure index (cont.)Legislation Requirement PageFinancial reportFinancial statements required under Part 7 of the Financial Management Act 1994SD 2 4.2(a) Statement of changes in equity 71SD 4.2(b) Operational statement 69SD 4.2(b) Balance sheet 70SD 4.2(b) Cash flow statement 72SD 4.2(f) Compliance with Model Financial Report 58–123Other requirements under Standing Directions 4.2SD 4.2(c) Australian accounting standards and other authoritative pronouncements 74SD 4.2(c) Compliance with Ministerial Directions 74SD 4.2(c) Accountable officer’s declaration 121SD 4.2(d) Rounding of amounts 84Other disclosures in notes to the financial statementsFRD 9A Departmental disclosure of administered assets and liabilities 92FRD 11 Disclosure of ex-gratia payments 117FRD 13 Disclosure of parliamentary appropriations 96FRD 21A Responsible person and executive officer disclosures 112LegislationFreedom of Information Act 1982 168–69Building Act 1993 176Financial Management Act 1994 174–75Audit Act 1994 122–23Whistleblowers Protection Act 2001 170–71Victorian Industry Participation Policy Act 2003 1741 Financial Reporting Direction2 Standing DirectionAdditional informationConsistent with the requirements of theFinancial Management Act 1994, theDepartment has retained material on thefollowing items which are available onrequest (subject to freedom of informationrequirements, if applicable):• a statement that declarations of pecuniaryinterests have been duly completed by allrelevant officers of the Department• details of shares held by senior officers asnominees or held beneficially in a statutoryauthority or subsidiary• details of publications produced by theDepartment about the Department andthe places where the publications canbe obtained• details of changes in prices, fees, charges,rates and levies charged by the Departmentfor its services• details of major external reviews carried outon the operation of the Department180DEECD Annual Report 2007—08

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviations• details of major research and developmentactivities undertaken by the Department• details of overseas visits undertaken,including a summary of the objectives andoutcomes of each visit• details of major promotional, public relationsand marketing activities undertaken bythe Department to develop communityawareness of the Department and theservices it provides• details of assessments and measuresundertaken to improve the occupationalhealth and safety of employees• a general statement on industrial relationswithin the Department and details of time lostthrough industrial accidents and disputes• a list of major committees sponsored bythe Department, the purposes of eachcommittee and the extent to which thepurposes have been achieved.Enquiries regarding this information should bedirected to:SecretaryDepartment of Education and Early ChildhoodDevelopmentGPO Box 4367Melbourne Victoria 3001Appendices181

ContentsAbout thisreportSecretary’sreportOverviewOutputs andperformancemeasuresEarlychildhoodservicesCompulsoryyearsLater yearsand youthtransitionsServicestostudentsAdolescenthealthservices(schools)Policy andregulationFinancialreportAppendicesAcronymsandabbreviationsAcronyms and abbreviationsAASAustralian Accounting StandardAASB Australian Accounting Standards BoardACEAdult community educationAESOC Australian Education Senior Officials CommitteeAIMachievement Improvement MonitorCALD Cultural and linguistic diversityCOAG Council of Australian GovernmentsDHS Department of Human ServicesDLTDepartmental Leadership TeamDTFDepartment of Treasury and FinanceECIS Early Childhood Intervention ServicesFRDFinancial Reporting DirectionFTEFull-time equivalentGAAP Australian Generally Accepted Accounting PrinciplesGFSGovernment Finance StatisticsGSTGoods and Services TaxIBInternational BaccalaureateICTInformation and communications technologyLLEN Local Learning and Employment NetworkLOTE Languages other than EnglishMCEETYA Ministerial Council on Education, Employment, Training and Youth AffairsOCECD Office for Children and Early Childhood DevelopmentOHS Occupational Health and SafetyPMO Program Management OfficeRISregulatory Impact StatementSDStanding DirectionSSO School Services OfficerVCAA Victorian Curriculum and Assessment AuthorityVCAL Victorian Certificate of Applied LearningVCE Victorian Certificate of Education (Years 11 and 12)VELS Victorian Essential Learning StandardsVETVocational education and trainingVPSVictorian Public ServiceVRQA Victorian Registration and Qualifications Authority182DEECD Annual Report 2007—08

Department of Education and Early Childhood Development2 Treasury PlaceEast Melbourne Victoria 3002GPO Box 4367Melbourne Victoria 3001Telephone (03) 9637 2222or freecall 1800 809 834Facsimile (03) 9637 2626Email edline@edumail.vic.gov.auWebsite www.education.vic.gov.auPrinted on recycled paper