▼ In this section ▼
Sensitive: Auditor -General
A16/06
Ms Natalie Howson
Director-General Education Directorate
Level 61220 Northbourne Avenue
BRADDON ACT 2612
Dear Ms Howson
EDUCATION DIRECTORATE - REPORT OF FACTURAL FINDINGS STATEMENT OF PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2016
The Audit Office has completed the audit of the statement of performance of the Education Directorate for the year ended 30 June 2016.
I have attached the statement of performance and report of factual findings.
I have provided a copy of the statement of performance and report of factual findings to the Minister for Education, Mr Shane Rattenbury MLA.
Yours sincerely
c.c.
Ms Carol Lilley, Chair, Audit Committee
Mr Robert Gotts, Director, Planning and Performance
Mr Mark Whybrow, Chief Financial Officer
Ms Megan Young, Chief Internal Auditor
Level 4, 11 Moore Street Canberra City ACT 2601 PO Box 275 Civic Square ACT 2608
T 02 6207 0833 F 02 6207 0826 E actauditorgeneral@act.gov.au W www.audit.act.gov.au 
REPORT OF FACTUAL FINDINGS EDUCATION DIRECTORATE
To the Members of the ACT Legislative Assembly
Report on the statement of performance
The statement of performance of the Education Directorate (the Directorate) for the year ended 30 June 2016 has been reviewed.
Responsibility for the statement of performance
The Directorate-General is responsible for the preparation and fair presentation of the statement of performance of the Directorate in accordance with the Financial Management Act 1996. This includes responsibility for maintaining adequate records and internal controls that are designed to prevent and detect fraud and error, and the systems and procedures to measure the results of the accountability indicators reported in the statement of performance.
The review was conducted in accordance with Australian Auditing Standards applicable to review engagements, to provide assurance that the results of the accountability indicators reported in the statement of performance have been fairly presented in accordance with the Financial management Act 1996.
A review is primarily limited to making inquiries with representatives of the Directorate, performing analytical and other review procedures and examining other available evidence. These review procedures do not provide all of the evidence that would be required in an audit, therefore, the level of assurance provided is less than that given in an audit. An audit has not been performed and no audit opinion is being expressed on the statement of performance.
The review did not include an assessment of the relevance of appropriateness of the accountability indicators reported in the statement of performance or the related performance targets.
Level 4, 11 Moore Street Canberra City ACT 2601 PO Box 275 Civic Square ACT 2608
T 02 6207 0833 F 02 6207 0826 E actauditorgeneral@act.gov.au W www.audit.act.gov.au
No opinion is expressed on the accuracy of explanations provided for variation between actual and targeted performance due to the often subjective nature of such explanations.
As disclosed in the statement of performance, in accordance with the Financial Management (Statement of Performance Scrutiny) Guidelines 2016, the Government Payment for Outputs and Total Cost information included in the statement of performance has not been reviewed.
Electronic presentation of the statement of performance
Those viewing an electronic presentation of this statement of performance should note that the review does not provide assurance on the integrity of information presented electronically, and does not provide assurance on the integrity of information presented electronically, and does not provide an opinion on any other information which may have been hyperlinked to or from this statement of performance. If users of this statement of performance are concerned with the inherent risks to the printed copy of the reviewed statement of performance to confirm the accuracy of this electronically presented information.
Independence
Applicable independence requirements of Australia professional ethical pronouncements were followed in conducting the review.
Review opinion
Based on the review procedures, no matters have come to my attention which indicate that the results of the accountability indicators reported in the statement of performance of the Directorate for the year ended 30 June 2016, are not fairly presented in accordance with the Financial Management Act 1996.
This review opinion should be read in conjunction with the other information disclosed in this report.
EDUCATION DIRECTORATE STATEMENT OF PERFORMANCE
For the year ended 30 June 2016
Statement of Responsibility
In my opinion, the Statement of Performance is in agreement with the Directorate’s records and fairly reflects the service performance of the Directorate in providing each class of outputs during the financial year ended 30 June 2016.
Natalie Howson
Director-General
14 September 2016
Output Class 1: Public School Education
Description
Public primary school education spans the years from preschool to year 6. It is available, on average, for eight years with a preschool age of four years and a kindergarten starting age of five years. A balanced curriculum allows the students to develop the qualities needed for lifelong learning. Public high school education covers the years 7 to 10. ACT public high schools offer a broad and comprehensive education across all key learning areas. Public secondary college education covers years 11 and 12, offering courses catering for a broad range of student needs and interests.
A range of educational settings are available in ACT public schools for students with a disability. These include special needs schools, special classes or units in mainstream schools and additional support in mainstream classes.
| 2015-16 Target | 2015-16 Result | Percentage variance from the target | Explanation of material variance (±10% or higher) | |
|---|---|---|---|---|
| Cost ($’000) | ||||
| 1.1 Public Primary School Education | 354,764 | 348,700 | (1.7%) | |
| 1.2 Public High School Education | 178,794 | 173,887 | (2.7%) | |
| 1.3 Public Secondary College Education | 118,447 | 115,534 | (2.5%) | |
| 1.4 Disability Education in Public Schools | 73,950 | 74,801 | 1.2% | |
| Total Output Class 1 | 725,955 | 712,922 | (1.8%) | |
| Government Payment for Output ($’000) | ||||
| 1.1 Public Primary School Education | 297,223 | 293,804 | (1.2%) | |
| 1.2 Public High School Education | 153,667 | 152,171 | (1.0%) | |
| 1.3 Public Secondary College Education | 100,296 | 99,333 | (1.0%) | |
| 1.4 Disability Education in Public Schools | 65,840 | 65,957 | 0.2% | |
| Total Output Class 1 | 617,026 | 611,265 | (0.9%) |
Note:
The Total Cost and Government Payment for Output measures were not examined by the ACT Audit Office in accordance with the Financial Management (Statement of Performance Scrutiny) Guidelines 2016.
| Output Class 1: Public School Education Accountability Indicators | 2015-16 Target | 2015-16 Result | Percentage variance from the target | Explanation of material variance (±10% or higher) |
|---|---|---|---|---|
| Early childhood education | ||||
| 4,650 | 4,740 | 1.9% | |
| 231 | 288 | 24.7% | Note 1 |
| School participation | ||||
| 91.5% | 91.9% | 0.4% | |
| Education and care services | ||||
| 85% | 68% | (20.0%) | Note 2 |
| 95% | 71% | (25.3%) | Note 3 |
| 100% | 97% | (3.0%) | |
| Disability education | ||||
| 100% | 99% | (1.0%) | |
| Senior secondary education | ||||
| 85% | 93.2% | 9.6% | |
| 80% | 86% | 7.5% | |
| 100% | 100% | - | |
| 75% | 89.5% | 19.3% | Note 4 |
| 50% | 46% | (8.0%) | |
| 20% | 17% | (15.0%) | Note 5 |
| 60% | 55% | (8.3%) | |
| 50% | 63% | 26.0% | Note 6 |
| Regulatory and process reform initiative | ||||
| 30 June 2016 | 30 June 2016 | - | |
| Average cost ($) per student per annum in public: | ||||
| 6,740 | 6,891 | 2.2% | |
| 15,012 | 13,915 | (7.3%) | |
| 19,202 | 18,111 | (5.7%) | |
| 19,120 | 18,584 | (2.8%) | |
| 66,207 | 65,061 | (1.7%) | |
| 28,598 | 28,654 | 0.2% |
Note:
The above Accountability Indicators were examined by the ACT Audit Office in accordance with the Financial Management Act 1996.
Notes to variance explanation:
- In 2015-16 a higher than expected result was due to strong increase in enrolments in both mainstream and Koori preschool programs.
- Response rates in the 2016 survey show lower than expected positive ratings, however response rates to the survey were too low to allow for a confident assessment of the perceptions of the sector about assessment and monitoring activities. This indicator has been discontinued for 2016-17.
- The full year result (71%) is based on results over the period from November 2015 to June 2016. A lower than expected result is due to the introduction of changes to the methodology of assessing and triaging complaints. These changes meant it was not possible to establish a consistent measurement over a full year. This indicator has been discontinued for 2016-17 and replaced with an indicator based on the delivery of the annual compliance audit program.
- A higher than expected result reflects a number of factors including efforts by colleges, heightened awareness and focussed approach by network leaders and senior management. It is not possible to determine the contribution of each factor.
- Seventeen Aboriginal and Torres Strait Islander students achieved a Tertiary Entrance Statement in 2015 compared to nine in 2014. The increase in Aboriginal and Torres Strait Islander students in the February census 2014 – 83 to February census 2015 – 102 may have contributed to a lower percentage completion rate.
- A higher than expected number of enrolments of Aboriginal and Torres Strait Islander students from 83 in 2014 to 102 in 2015 in the February census may account for this positive variance, assuming that most of these extra students received at least one vocational qualification.
Output Class 2: Non-government Education
Output 2.1: Non-government Education
Description
The Directorate contributes to the maintenance of standards in non-government schools and home education through compliance and registration, and the accreditation and certification of senior secondary courses through the Board of Senior Secondary Studies. The Directorate also undertakes the administration and payment of the Commonwealth and ACT Government grants.
| 2015-16 Target | 2015-16 Result | Percentage variance from the target | Explanation of material variance (±10% or higher) | |
|---|---|---|---|---|
| Total Cost ($’000) | 3,441 | 3,341 | (2.9%) | |
| Government Payment for Output ($’000) | 2,851 | 2,787 | (2.2%) | |
| Accountability Indicators | ||||
| 100% | 100% | - | |
| 100% | 98% | (2.0%) | |
| 100% | 100% | - |
Note:
The above Accountability Indicators were examined by the ACT Audit Office in accordance with the Financial Management Act 1996. The Total Cost and Government Payment for Output measures were not examined by the ACT Audit Office in accordance with the Financial Management (Statement of Performance Scrutiny) Guidelines 2016.
Output Class 3: Vocational Education and Training
Output 3.1: Planning and Coordination of Vocational Education and Training Services
Description
The Directorate was responsible and accountable for the provision of strategic advice and management of vocational education and training (VET) and higher education in the ACT. This included administering, monitoring and auditing territory and national funds for a variety of programs addressing skills development. The VET system in the ACT responds to the demands and requirements of industry and the community. The Directorate gathered advice from industry stakeholders to predict industry trends and identify the future training requirements of the ACT.
| 2015-16 Target | 2015-16 Result | Percentage variance from the target | Explanation of material variance (±10% or higher) | |
|---|---|---|---|---|
| Total Cost ($’000) | 36,773 | 12,918 | (64.9%) | Note 1 |
| Government Payment for Output ($’000) | 36,288 | 12,564 | (65.4%) | Note 1 |
| Accountability Indicators | ||||
| 100% | 100% | - | |
| 100% | 100% | - | |
| ||||
| 30,100 | 23,224 | (22.8%) | Note 2 |
| 755 | 933 | 23.6% | Note 3 |
| 1,940 | 1,972 | 1.6% | |
| ||||
| 8.2% | 5.9% | (28.0%) | Note 4 |
| 15.5% | 13.5% | (12.9%) | Note 5 |
Note:
The above Accountability Indicators were examined by the ACT Audit Office in accordance with the Financial Management Act 1996. The Total Cost and Government Payment for Output measures were not examined by the ACT Audit Office in accordance with the Financial Management (Statement of Performance Scrutiny) Guidelines 2016.
Notes to variance explanation:
- The responsibility for VET functions associated with this output was transferred to Chief Minister, Treasury and Economic Development Directorate (CMTEDD) from 22 January 2016 following changes to Administrative Arrangements. This is not reflected in the original budget.
- The lower than expected result is due to a decrease in student numbers, both in the ACT and nationally, since 2012. The 2014-15 target was set in 2014 based on 2012 data, and has not since been rebased.
- The result is higher than expected due to the high degree of variability in the number of Aboriginal and Torres Strait Islander students undertaking vocational qualifications from year to year. The number of students increased by 13.2% (to 933) from 2014-15 to 2015-16 after decreasing by 13.1% (to 824) from 2013-14 to 2014-15.
- The lower than expected result is due to a decrease in student participation rates, both in the ACT and nationally, since 2012. The 2014‑15 target was set in 2014 based on 2012 data, and has not since been rebased.
- The variance is due to a change in the data series used by the ABS to estimate the number of Aboriginal and Torres Strait Islander students. The new data series produces significantly higher estimates for the population of Aboriginal and Torres Strait Islander people (up approximately 30% from the previous report).