Challenger TAFE | Annual Report 2006 - Parliament of Western ...

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94 Challenger TAFE | Annual Report 2006 Challenger TAFE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 When assessing expected future payments consideration is given to expected future wage and salary levels including non salary components such as employer superannuation contributions. In addition, the long service leave liability also considers the experience of employee departures and periods of service. The expected future payments are discounted using market yields at the balance sheet date on national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outfl ows. All annual leave and unconditional long service leave provisions are classifi ed as current liabilities as the College does not have an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. Superannuation The Government Employees Superannuation Board (GESB) administers the following superannuation schemes. Employees may contribute to the Pension Scheme, a defi ned benefi t pension scheme now closed to new members or the Gold State Superannuation Scheme (GSS), a defi ned benefi t lump sum scheme also closed to new members. The College has no liabilities under the Pension or the GSS Schemes. The liabilities for the unfunded Pension Scheme and the unfunded GSS Scheme transfer benefi ts due to members who transferred from the Pension Scheme, are assumed by the Treasurer. All other GSS Scheme obligations are funded by concurrent contributions made by the College to the GESB. The concurrently funded part of the GSS Scheme is a defi ned contribution scheme as these contributions extinguish all liabilities in respect of the concurrently funded GSS Scheme obligations. Employees who are not members of either the Pension or the GSS Schemes become non contributory members of the West State Superannuation (WSS) Scheme, an accumulation scheme. The College makes concurrent contributions to GESB on behalf of employees in compliance with the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992. The WSS Scheme is a defi ned contribution scheme as these contributions extinguish all liabilities in respect of the concurrently funded GSS Scheme obligations. The GESB makes all benefi t payments and is recouped by the Treasurer for the employer share in respect of the Pension and GSS Scheme transfer benefi ts. See also note 2(t) ‘Superannuation expense’. (ii) Provisions -Other Employment On Costs Employment on-costs, including workers’ compensation insurance, are not employee benefi ts and are recognised as separate liabilities and expenses when the employment to which they relate has occurred. Employment on-costs are not included as part of the College’s ‘Employee benefi ts expense’ and the related liability is included in employment on-costs provision. (See note 12 ‘Other expenses’ and note 30 ‘Provisions’). (t) Superannuation Expense The following elements are included in calculating a superannuation expense in the Income Statement: (a) Defi ned benefi t plans - Change in the unfunded employer’s liability (i.e. current service cost and actuarial gains and losses) assumed by the Treasurer in respect of current employees who are members of the Pension Scheme and current employees who accrued a benefi t on transfer from that Scheme to the Gold State Superannuation Scheme (GSS); and (b) Defi ned contribution plans - Employer contributions paid to the GSS and the West State Superannuation Scheme (WSS). Defi ned benefi t plans - in order to refl ect the true cost of services, the movements in the liabilities in respect of the Pension Scheme and the GSS transfer benefi ts are recognised as expenses. As these liabilities are assumed by the Treasurer (refer note 2(s)(i)), a revenue titled ‘Liabilities assumed by the Treasurer’ equivalent to the expense is recognised under Income from State Government in the Income Statement (See note 21 ‘Income from State Government’). The Superannuation expense does not include payment of pensions to retirees, as this does not constitute part of the cost of services provided in the current year.
Challenger TAFE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 Challenger TAFE | Annual Report 2006 95 The GSS scheme is a defi ned benefi t scheme for the purpose of employees and whole-of-government reporting. However, apart from the transfer benefi t, it is a defi ned contribution plan for agency purposes because the concurrent contributions (defi ned contributions) made by the agency to GESB extinguishes the agency’s obligations to the related superannuation liability. (u) Resources Received Free of Charge or for Nominal Value Resources received free of charge or for nominal cost which can be reliably measured are recognised as income and as assets or expenses, as appropriate at fair value. (v) Jointly Controlled Operations Interests in joint venture operations have been reported in the fi nancial report including the share of assets employed in the joint ventures, the share of liabilities incurred in relation to the joint ventures and the share of any expenses incurred in relation to the joint ventures in their respective classifi cation categories. (w) Comparative Figures Comparative fi gures are, where appropriate, reclassifi ed to be comparable with the fi gures presented in the current fi nancial year. 3 Judgements made by management in applying accounting policies No signifi cant judgements have been made in the process of applying accounting policies, that have a material effect on the amounts recognised in the fi nancial statements. 4 Key sources of estimation uncertainty The key estimates and assumptions made concerning the future, and other key sources of estimation uncertainty at the balance sheet date that have a signifi cant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next fi nancial year include: The College revalues it’s Land and Buildings each year. Every three years Plant and Equipment are revalued, during which time estimates of useful life are provided to give guidance on depreciation rates used in intervening years. The Plant and Equipment valuation was not undertaken in 2006, the college will adopt a $5,000 asset limit as from 1 January 2007. General receivables from other government agencies are considered risk free, no provision, and all others are by individual assessment, with a provision to the full value if required. 5 Disclosure of changes in Accounting Policy and Estimates Initial application of an Australian Accounting Standard The College has applied the following Australian Accounting Standards and UIG Interpretations effective for annual reporting periods beginning on or after 1 January 2006 1. AASB 119 ‘Employee Benefi ts’ as issued in December 2004, AASB 2004-3 ‘Amendments to Australian Accounting Standards’ and AASB 2005-3 ‘Amendments to Australian Accounting Standards’ [AASB 119]’. The revisions to AASB 119 and the amending Standards deal with options regarding the recognition of actuarial gains and losses associated with defi ned benefi t plans and changes to disclosures for defi ned benefi t plans. The College is not affected by these changes and as a result there is no fi nancial impact in applying these Standards. 2. AASB 2005-9 ‘Amendments to Australian Accounting Standards’ [AASB 4, AASB1023, AASB 139 & AASB 132]’ (Financial guarantee contracts). The amendment deals with the treatment of fi nancial guarantee contracts, credit insurance contracts, letters of credit or credit derivative default contracts as either an ‘insurance contracts’ under AASB 4 ‘Insurance Contracts’ or as a “fi nancial guarantee contract” under AASB 139 ‘Financial Instruments: Recognition and Measurement’. The College does not currently undertake these types of transactions, resulting in no fi nancial impact in applying the Standard.
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Challenger TAFE | Annual Report 200
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The Hon Mark McGowan Minister for E
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CONTENTS Challenger TAFE | Annual R
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CHALLENGER TAFE IN WESTERN AUSTRALI
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7 Kadadjiny Mia - Centre for Aborig
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CHAPTER 2 - BETTER PLANNING: BETTER
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2.3 The Environment From State Goal
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CHAPTER 3 - KEY PRIORITIES FOR TAFE
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CHAPTER 4 - CHAIRPERSON’S REPORT
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CHAPTER 7 - OVERVIEW OF OPERATIONS
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Table 7.2 All delivery 2006 by fund
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INDEPENDENT AUDIT OPINION To the Pa
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Key Performance Indicators Challeng
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Figure 8.2: Cost per SCH 2002-2006
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Figure 8.4: Targeted Profi le Achie
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Page 43 and 44: Figure 8.11: Graduate Labour Market
Page 45 and 46: Figure 8.13 Profi le to Non-Profi l
Page 47 and 48: Table 8.18 Total Indigenous Student
Page 49 and 50: Figure 8.22 Comparison of Customer
Page 51 and 52: CHAPTER 9 - MANAGEMENT STRUCTURE 9.
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Page 57 and 58: CHAPTER 10 - CUSTOMER FOCUS Challen
Page 59 and 60: 10.1.1.1 CareerConnect, Jan-Nov 200
Page 63 and 64: CHAPTER 11. OUTPUT REPORTS Challeng
Page 75 and 76: CHAPTER 12 - STATEMENT OF COMPLIANC
Page 83 and 84: FINANCIAL STATEMENTS CHALLENGER TAF
Page 89 and 90: Challenger TAFE NOTES TO THE FINANC
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