C.6 Statement of Performance

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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

signature of Maxine Cooper with color

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 external link

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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 external link

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.

signature of Maxine Cooper

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.

signature of Natalie Howson

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     
  1. Number of enrolments in preschool in public schools
4,650 4,740 1.9%  
  1. Number of enrolments of Aboriginal and Torres Strait Islander students in preschool in public schools
231 288 24.7% Note 1
School participation     
  1. Attendance rate of public school students in year 1 to year10
91.5% 91.9% 0.4%  
Education and care services     
  1. Education and care services satisfaction with assessment and monitoring functions
85% 68% (20.0%) Note 2
  1. Investigations and complaints commenced within stated policy timeframes
95% 71% (25.3%) Note 3
  1. Assessment and ratings completed within legislated timeframes
100% 97% (3.0%)  
Disability education     
  1. Individual Learning Plans completed for students in special and mainstream schools who access special education services
100% 99% (1.0%)  
Senior secondary education     
  1. Percentage of year 10 students who proceed to public secondary college education
85% 93.2% 9.6%  
  1. Percentage of year 10 Aboriginal and Torres Strait Islander students who proceed to public secondary college education
80% 86% 7.5%  
  1. Apparent retention of public school students from year 7 to year 12
100% 100% -  
  1. Apparent retention of Aboriginal and Torres Strait Islander public school students from year 7 to year12
75% 89.5% 19.3% Note 4
  1. Percentage of year 12 students who receive a Tertiary Entrance Statement
50% 46% (8.0%)  
  1. Percentage of year 12 Aboriginal and Torres Strait Islander students who receive a Tertiary Entrance Statement
20% 17% (15.0%) Note 5
  1. Percentage of year 12 students who receive a nationally recognised vocational qualification
60% 55% (8.3%)  
  1. Percentage of year 12 Aboriginal and Torres Strait Islander students who receive a nationally recognised vocational qualification
50% 63% 26.0% Note 6
Regulatory and process reform initiative     
  1. Commenced implementation of red tape reduction initiatives
30 June 2016 30 June 2016 -  
Average cost ($) per student per annum in public:     
  1. Preschools
6,740 6,891 2.2%  
  1. Primary schools
15,012 13,915 (7.3%)  
  1. High schools
19,202 18,111 (5.7%)  
  1. Secondary colleges
19,120 18,584 (2.8%)  
  1. Special schools
66,207 65,061 (1.7%)  
  1. Mainstream Schools’ student with a disability
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:

  1. In 2015-16 a higher than expected result was due to strong increase in enrolments in both mainstream and Koori preschool programs.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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     
  1. All non-government schools operating in the ACT during the reporting period are registered
100% 100% -  
  1. The provisional registration of home educated students is completed within ten school days of the receipt of the application
100% 98% (2.0%)  
  1. Grants paid within the required period of receiving funds from the Commonwealth Government
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     
  1. Funded training initiative allocation rounds administered within published timeframes
100% 100% -  
  1. Registered training organisation audit reports provided within 30 days of completion of on-site audit
100% 100% -  
  1. Total number of students undertaking vocational qualifications:
    
  1. all students
30,100 23,224 (22.8%) Note 2
  1. Aboriginal and Torres Strait Islander students
755 933 23.6% Note 3
  1. students with a disability
1,940 1,972 1.6%  
  1. Participation in vocational education and training:
    
  1. all students (percentage)
8.2% 5.9% (28.0%) Note 4
  1. Aboriginal and Torres Strait Islander students (percentage)
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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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).

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