Education

4.3
Statement of
Cash Flows
Note
Budget
$’000
Actual
$’000
Variance
$’000
Variance
%
Appropriation revenue – recurrent 1 893,214 866,773 (26,441) (3)
Grants 2 67,758 58,573 (9,185) (14)
GST receipts 3 48,574 33,440 (15,134) (31)
Employee benefits 4 684,541 723,551 (39,010) (6)
GST payments 3 47,378 32,160 (15,218) (32)
Supplies and consumables 4 243,389 190,240 53,149 22
Grants and subsidies 5 50,859 57,911 (7,052) (14)
Other cash payments 1 50,333 25,563 24,770 49
Proceeds from the disposal of non-financial assets 6 – 2,502 2,502 –
Payments for the acquisition of non-financial assets 7 39,827 22,043 17,784 45
Appropriation repayment to Treasury 7 – 7,674 (7,674) –
Notes to Statement of Cash Flows variances
1. The variance is the result of the government’s decision to remove the requirement for inner budget agencies to be subject to payroll tax. Also, there was
an increased appropriation for VET Reform and asset sales offset by a reduction in Australian Government Specific Purpose Payments.
2. The variance is the result of lower than budgeted revenue from the Australian Government for National Partnerships due to timing variances. These funds
will be received during the 2013–14 financial year.
3. The variance is influenced by consolidated of all schools on the one Business Activity Statement therefore payments between schools and the department
attracted GST which is no longer the case. In addition, the transactions that were budgeted to attract GST did not occur at the level estimated such as
employee benefits which does not attract GST.
4. The variance has been influenced by the Australian Government’s National Partnerships being budgeted against supplies and consumables. However as
programs were developed under these partnerships expenditure was incurred on employee benefits. As a result, employee benefits were higher than
budgeted but with a corresponding saving against supplies and consumables. In addition, as per note 3 grants revenue was lower than budgeted therefore
the corresponding expenditure against supplies and consumables was lower than budgeted.
5. The variance is influenced by a number of factors including that at the time of the budget development for National Partnerships the distribution between
government and non-government sectors was unclear. The budget was therefore allocated for all National Partnership expenditure against supplies and
consumables. Therefore, a corresponding saving exists in that item. In addition, there were increased grant payments for contestable funding for vocational
education and training. This is the result of the Australian Government increasing the number of courses that have to be contested in the training market.
6. The variance is influenced by asset sales that were not undertaken through Crown Lands Administration Fund (CLAF) therefore no budget provision of
was made. Asset sales made through CLAF are recognised as an adjustment directly to equity.
7. The variance is the result of the approved carry forward under section 8A(2) of the Public Account Act 1986 from 2011–12 financial year not being
fully expended, subsequently $7.674m was repaid to the Department of Treasury and Finance. In addition, at the time of the budget development the
estimated carry forward was $16.465m but actual approved carry forward was $13.227m. These carry forwards relate to payments for the acquisition
of non-financial assets.
Note 5: Events occurring after balance date
There have been no events subsequent to balance date
which would have a material effect on the department’s
Financial Statements as at 30 June 2013.
Following the enactment of the Training and Workforce
Development Act 2013, a new statutory authority named
TasTAFE was created effective from 1 July 2013.
TasTAFE is the new public provider of vocational
education and training for Tasmania. It has been created
through the amalgamation of the statutory authority
Tasmanian Skills Institute and the Tasmanian Polytechnic
operations of the Department of Education.
Some assets, liabilities, contracts, and staff of the
department have been transferred to the new TasTAFE
statutory authority. The assets and liabilities have been
transferred in accordance with Treasurer’s Instruction
208 ‘Contributions to State-owned Entities’.
On 19 June 2013, the Minister for Education and Skills
made a determination under section 4(3) of the
Training and Workforce Development (Transitional Provisions)
Act 2013 that all land and fixtures that were held before
1 July 2013 in relation to the performance of any functions
of the Tasmanian Polytechnic is not Polytechnic property.
Therefore, these land and fixtures have not transferred to
TasTAFE and continue to be held by the Crown in right
of Tasmania. This determination was gazetted on the
26 June 2013.
Although ownership of land and building will remain with
the Department of Education, a licensing agreement
permits TasTAFE to continue to operate on these
sites. From an accounting perspective, the Australian
Accounting Standards Board (AASB) ‘Framework for
the Preparation and Presentation of Financial Statements’
notes that an asset is ‘a resource controlled by an entity
as a result of past events and from which future
economic benefits are expected to flow to the entity’.
Further AASB 116 requires an asset to be recognised
when it is probable that future economic benefits
associated with the item will flow to the entity and the
cost of the item can be reliably measured. Therefore,
from 1 July 2013, land and buildings used by TasTAFE
will be reported at fair value in the financial statements
of TasTAFE.
In addition, Skills Tasmania has ceased to be a statutory
authority from 30 June 2013. Skills Tasmania maintains its
name and functions, but has become a business unit of
the department therefore will no longer be a separate
consolidated entity listed in note 16.
Financial Statements » Notes
125