Adult, Community and Further Education Board Annual Report 2021–22

Engagement and confidence building

• Maintaining – and building on – the core strengths of Learn Local education and training
• Continuing to successfully engage and re-engage adult learners
• Providing supportive, inclusive, flexible learning environments

Skills for further education, training, work, volunteering and life

• Providing access to developing core skills for learners in every local government area
• Offering equitable access for learners, regardless of their location, background or circumstances

Pre-accredited Learner Survey

In 2022, learners in pre-accredited education and training were again included in the vocational education and training (VET) Student Satisfaction Survey.

The 2022 Pre-accredited Learner Survey of 2021 learners in pre-accredited programs had a response rate of 35.2% (5,564 learners).

The 2022 survey results were very positive and indicated that learners were highly satisfied with the teaching and learning experience:

• 83% indicated that they achieved their main reason for training.
• 90% reported satisfaction with course materials and facilities, as well as the support they received from their trainers.
• 86% reported positive perceptions of teaching.
• 99% reported a safe, welcoming and culturally appropriate learning environment that factored in the diversity of learners.
• 91% would recommend their Learn Local provider.
• 89% indicated that they were satisfied with their training.
• 92% were satisfied that their provider had identified their learning needs.
• 85% were satisfied that their pre-accredited course addressed their learning needs.

Employment outcomes for the 2021 cohort of pre-accredited training show several key employment improvements following pre-accredited training, including:

• improved employment (up by 6.5 percentage points)
• decreased unemployment (down by 3.1 percentage points)
• increased volunteering and unpaid work (up by 0.1 percentage points)
• increased workforce participation (up by 3.4 percentage points).

The approximately 30% of learners who undertook pre-accredited training for work-related reasons contributed most to the overall improvements in employment outcomes for learners. They accounted for more than two-thirds of the increase in employment, decline in unemployment and increase in labour force participation.

Meeting learner needs in the COVID-19 environment

Recent challenges have highlighted that there is an even greater role for our sector and a critical need for our learners across all communities to build their core skills, including digital skills, for their lives and futures. Some Learn Locals continued to face difficulties in engaging learners throughout 2021, due to repeated lockdowns and distancing rules in the COVID-19 environment. In response, the Board implemented a range of business supports for Learn Local providers, including AMES Australia and the Centre for Adult Education (CAE), in delivery of Learn Local courses.

This included support and training for Learn Locals to deliver online or remote training, guidance materials, support networks, and webinars on innovative delivery strategies. This supported learners to engage in Learn Local courses during this time, and to realise their personal and career goals. A suite of centralised resources was also developed to assist the sector to deliver training in areas of greatest need, including digital literacy skills.

In the 2021–22 budget, $2.781 million over 2 years has been allocated for 2,400 additional pre‑accredited training places in digital literacy programs and 2,400 additional pre-accredited training places in employability skills programs.

Better engagement

Consultation with learners and research provided insight and evidence to better provide for learner needs, and assist future planning and provision. The Board has focused on work to understand our learners, particularly those who have been impacted by the last 2 years, and those who are hard to reach and would benefit from engaging in Learn Local courses. The work has had a focus on culturally and linguistically diverse and Koorie members of our communities. Participation and inclusion of First Nations peoples remains a key priority of the Board.

Work is also underway to establish sustainable pre-accredited regional provision models through the development of networked and innovative models in the areas of East Gippsland, Swan Hill and South-Western Victoria. These models will address barriers to access and ensure ongoing training for learners, through collaborative and viable delivery approaches by Learn Local providers and partners. The outcomes of this work will inform provision and system-wide approaches.

Stronger by Design and the Pre-accredited Quality Framework

The Board approved a new pre-accredited curriculum model, Stronger by Design, which refocuses pre‑accredited training arrangements to reflect a learner journey perspective. The refocused approach to pre-accredited training during this period has entailed reworking the Pre-accredited Quality Framework (PQF). This framework includes processes, guidelines and tools to assist Learn Local program developers to design Board-funded courses, and ensures quality teaching and learning that meets learner needs.

The revised pre-accredited model and PQF will reflect the Board’s focus on supplying adult learners with access to the language, literacy and numeracy knowledge, and the employability and digital skills necessary, to progress in further study and improve employment opportunities. The updated model and tools will also better reflect the contemporary teaching, learning and employment environment.

Digital Literacy Skills

The Board approved the Digital Literacy Skills for Adults program, which aims to establish a suite of digital literacy skills for adults modules and programs. Digital Essentials, the first stage of the program, was completed in 2021. It is designed to equip learners with the preparatory digital skills to engage in accredited training.

The program consists of two 30-hour modules designed to help learners understand the digital basics of various areas of technology, including different digital devices and how they function, and the ways people can use these devices to connect with others and access services over the internet.

The second stage of the program, delivered in 2022, comprises focused short modules for learners who are seeking a job or need to upskill or reskill. These short modules can be incorporated into existing longer pre-accredited courses. They are aimed at supporting learners to understand the digital basics of various areas of technology, and the ways people can use these devices to connect with others and access services over the internet.

Work has also commenced on a pilot in libraries in the eastern region of Melbourne to build learner digital skills, and improve access to digital equipment and tools. The purpose of this project is to develop a partnership model between the Your Library Network and Learn Local providers across Maroondah, Knox, Yarra Ranges and Manningham local government areas. This will improve the opportunity for adult learners who are enrolled in pre-accredited training to access digital technologies and resources that are available to members of public libraries. It is hoped the initiative will provide a blueprint for similar partnerships with libraries and Learn Local providers across the state.

Family Learning Partnerships

The Family Learning Partnerships (FLP) program supports families experiencing education disadvantage to access adult education through:

• collaborative relationships between Learn Local providers and other service providers, such as schools, early learning centres and other community services, to address barriers to learning
• communities of practice that bring program providers together to share knowledge, skills and experience
• flexible program funds that cover childcare costs for participating parents.

The FLP program delivers on the Ministerial Statement’s priority focus on inclusion and universal access to core education and training. It is aligned with the Strategy 2020–25 by continuing to successfully engage adult learners and striving to offer them equitable access, regardless of their location, background or circumstances.

Despite the difficulties of operating in a COVID-19 environment, delivery of the FLP program continued in 2021–22. Adjustments were made to enable providers to continue delivery of the programs throughout COVID‑19 restrictions.

Learner Engagement A-frame

To engage hard-to-reach learners who may find participation in shorter programs easier, the Board allocated $500,000 in 2021–22 to the Learner Engagement A-frame program.

The program targets adults experiencing barriers to training, including:

• disadvantaged or hard-to-reach learners
• learners with complex or multiple needs
• learners in thin markets or remote locations
• unemployed and vulnerable workers.

The program assists Learn Local providers to deliver short programs that:

• offer Learn Local providers the flexibility to improve the participation of adults who experience barriers to training in pre-accredited programs
• provide engagement activities that are linked to pathways to further training or employment
• improve pathway outcomes for learners experiencing barriers to training by building the skills they need to participate in further pre-accredited training programs, accredited education or employment.

Certificates in General Education for Adults

The Board is a sponsor of some nationally recognised accredited curricula. There are 5 Certificates in General Education for Adults (CGEAs) that aim to assist educationally disadvantaged adult learners to improve their literacy, basic numeracy and general education skills, so they are better prepared to pursue further study, qualifications and work outcomes.

Training organisations in Victoria are the chief users of the CGEA curriculum. However, other states also make ongoing use of the certificates.

In 2021–22, Victoria University, the Board’s appointed curriculum maintenance manager, continued to provide core services for the CGEA and teacher professional development sessions. Teachers were provided with examples of quality practice in the design, delivery and assessment for these certificates, and in various education contexts.

Accreditation of the certificates has been renewed to 30 June 2024.

Certificate IV in Tertiary Preparation

The Board sponsors and funds an accredited curriculum focused on supporting educationally disadvantaged Victorians to prepare for tertiary study. The Certificate IV in Tertiary Preparation was reaccredited on 30 June 2021 for a further 5 years to 30 June 2026. The scope of the certificate is sufficiently broad to support transition to a range of tertiary subject disciplines.

Partnering and collaboration

• Developing partnerships between Learn Local providers, TAFEs, universities and other parts of the post-compulsory education system
• Developing partnerships between Learn Local providers and employers
• Developing arrangements for non-educational supports for learners from health and community services partners

A priority provider of solutions

• Delivering practical solutions aligned with employers’ needs and Victorian Government priorities

Learn Local–industry partnerships

Partnerships with industry are a way that Learn Local providers can tailor training solutions to employers’ workforce skills needs, and to support workers who are vulnerable to unemployment and/or vulnerable adults seeking employment.

In 2021, a Just in Time Industry Partnership initiative was launched by the Board, with a focus on supporting emerging partnerships between Learn Locals and business, where there is an evidenced business core skills training need that can be matched by a co-designed, pre-accredited training solution.

Thirteen Learn Local–employer partnerships were funded in late 2021 in a range of industry areas facing key skill shortages, including construction, hospitality, health care and support, cleaning, agriculture and horticulture, food processing and manufacturing.

The number of partnerships continues to grow as industry becomes aware of the flexibility and responsiveness of pre-accredited programs. Learners benefit through the development of core skills they need to improve their job prospects and capacity to undertake further training. Employers have, through a customised program to fit their particular needs, potential employees who are job ready for their business.

The pre-accredited program resources developed as part of the partnerships undergo a final quality assurance review. They are then shared across the Learn Local sector to encourage more Learn Local partnerships with industry that lead to learning and employment outcomes for learners.

Lessons learned from the Just in Time initiative will inform the development of good practice guidelines for the facilitation of effective and sustainable Learn Local–industry partnerships for the benefit of learners. The good practice guidelines will also be informed by 4 Learn Local at Work with Industry case studies.

The Learn Local at Work with Industry initiative was launched in 2022 with a focus on established Learn Local–industry partnerships.

Four successful partnerships have been selected for showcasing as case studies. They have demonstrated good practice and provide strong lessons for the wider Learn Local provider community across Victoria, by working well with industry partners for the benefit of their learners to obtain or retain work. They include a mix of metropolitan, regional and rural-based Learn Local–industry partnerships.

All 4 Learn Local at Work with Industry case studies are in production. They cover the why, how, what, when and where of the Learn Local–industry partnerships, and the impacts and key lessons learned. They include the perspective of the Learn Local provider, the industry partner and the learners involved, and will be available later in 2022 in print and online formats, with a short video highlighting key aspects.

The tailored pre-accredited training programs used by the 4 case study partnerships, which enabled vulnerable adults to upskill to enter the workforce, are being prepared for sharing across the Learn Local sector.

TAFE and pathways

The Board continues to work with the ACFE Division in the department via the Office for TAFE Coordination and Delivery, and with TAFE institutes to strengthen relationships for the benefit of learners. The Board has focused on exploring ways to enhance pathway solutions for learners, through partnership arrangements and the development of courses to support learner transitions.

Investing in the Learn Local workforce

• Investing in the professional development of Learn Local leaders and educators

Investing in improved products and tools

• Investing in high-quality learning resources

Professional development

The Board invests in professional development for the Learn Local workforce for the benefit of adult learners undertaking pre-accredited training programs.

There has been strong ongoing investment in professional development through activities offered in a variety of learning modes based on sector input that leverage the learnings gained during COVID-19 disruptions. The investment aims to help build Learn Local sector resilience to future external impacts, as well as to consider new and emerging practices that further build on the skills of the sector to meet learner need, and to work with partners and communities. There continues to be a focus on building the skills of the sector to deliver the language, literacy, numeracy, digital and employability skills needed by our learners for their lives, for study and for work. There is also a focus on supporting innovation in practice and delivery though a variety of modes.

During 2021–22, the Board supported Learn Local providers to improve the quality of their work by funding the following professional learning activities:

• Two further rounds of the Adult Literacy and Numeracy Practitioners Program (ALNPP), developed and piloted in 2020, were provided to enhance the skills and practices of pre-accredited trainers delivering literacy and numeracy training in a vocational context. The program has been undertaken by more than 450 pre-accredited trainers and by at least one trainer in about 80% of all Learn Local providers.
• For ALNPP alumni, a Professional Learning Network was established. This provides continuing learning opportunities for pre-accredited teachers to improve their literacy and numeracy teaching, and their literacy and numeracy leadership professional identity in the Learn Local sector. Members of the ALNPP alumni also tested an additional Koorie literacy and numeracy teaching and learning module, which embeds cultural awareness in teaching and learning strategies for First Nations communities.
• As a result of the COVID-19 pandemic, attention was focused on online teaching and learning. The VET Development Centre provided an intermediate-level online teaching and learning program for teachers who completed the introductory online teaching and learning program. The intermediate program involved mentors drawn from graduates of the previous advanced-level program. A showcase event held in May 2022 demonstrated the success of the programs in supporting teachers to become familiar with the online teaching environment, to learn about new approaches to teaching, and to develop, implement and evaluate online learning resources.
• Professional development was offered to the Learn Local workforce in instructional design. The focus was on supporting Learn Local practitioners and trainers to develop their capacity and capability to produce high-quality curricula that were suitable for pre-accredited adult learners with low literacy, numeracy and employment skills below the Australian Core Skills Framework level 2. There were 124 participants in this professional development.
• Professional development was also provided to support and review the Skills for Work and Study program.
• A one-day ‘good practice’ sharing event called Marketplace was also run online. A variety of topics were determined and delivered by Learn Locals in a total of 25 sessions. Attendees across the sessions totalled more than 500.
• During the COVID-19 period, the Board supported 100 Learn Local managers to complete the Pre‑accredited Business Planning and Marketing course provided by the Small Business Mentoring Service. The professional development included one-on-one mentoring support to Learn Locals.
• The VET Development Centre provided a new 4-part program in blended delivery format for both pre-accredited and accredited VET educators on teaching, supporting and developing pathways for vulnerable learners. Between 20 and 30 participants attended each of the sessions.
• The VET Development Centre provided a new ‘masterclass’ in VET and Learn Local leadership in a blended delivery format.

Pre-accredited workforce Professional Practice and Recognition Framework

In May 2022, the Board commissioned the development of a Professional Practice and Recognition Framework for the adult community education workforce, and a tool to assist in its use. The framework will support the sector to provide advice on its professional needs and build and recognise the skills of educators and leaders. It will also enable the Board to implement an integrated long-term professional development approach for the Learn Local workforce for educators.

This strategic and integrated approach is being developed with significant expert, sector and Board advice. It will provide a holistic approach to workforce development of the sector by developing a tool that allows self-assessment of skills and knowledge, recognises and rewards existing skills, and facilitates dialogue on areas for individuals’ further professional development. It will be a simple tool for the sector to use and engage in through discussion at a local level, to identify individual professional development needs, and recognise and value the skills that individuals bring to the sector. It aims to strengthen professional practice, leadership and the quality of teaching and learning across the sector.

The framework, together with ongoing sector advice and emerging needs, will inform decision-making and professional development investment for Learn Local educators and leaders at various levels of professional practice (or application levels), to provide for career development.

Stewardship and governance

• Meeting the expectations and relevant outcomes set out in Ministerial Statement The Future of Adult Community Education in Victoria 2020–25
• Modelling ethical, values-based stewardship and governance

Communicating value and impact

• Championing and communicating the value that the Learn Local sector creates

Stewardship of the sector

The Board is confident it is making good progress against ministerial expectations in making sure that the Learn Local sector adapts and strengthens its capacity to develop core skills, so that educationally disadvantaged learners can fully participate in study, work and life.

The Board’s Strategy 2020–25, Planning and Accountability Framework, and our setting of 2022 priorities, underpinned by the department’s implementation plan, have established a clear program of work that has enabled the Board to reach many milestones in the first half of 2022. This work establishes a basis from which to move towards the achievement of all goals by 2025.

Considered together, sector feedback, the needs of learners, contextual impacts, the goals of the Ministerial Statement and the 4 strategic directions of the Board’s Strategy 2020–25 resulted in finalisation of 3 strategic policies on provision, procurement and Learn Local registration.

The Board has made significant investment in research to inform its strategic planning and decision-making, regarding training provision, investment in resources, sector initiatives and professional development. This work provides a strong evidence base for ACFE and an understanding of learners, including hard-to-reach and disengaged learners, their needs, and barriers and motivations to engagement.

This work also provides insight into our providers, including:

• their needs
• their capacity to deliver on current and future provision needs
• successes that can be shared across the sector
• identification of areas for greater support
• the value of Learn Locals and their impact and contribution to industry, the community and the economy.

The research will also assist Regional Councils in their work, and will provide valuable information for the sector.

In 2021, the Board applied a one-off 30% tolerance on the achievement of training targets for the release of 2021 pre-accredited training delivery payments, and a 30% tolerance for end-of-year recoupment of funds for training non-delivery. Timeframes for delivery of more specialised or newer training programs (Skills for Work and Study pilots and Pathways to TAFE programs) affected by the COVID-19 environment were also extended.

Governance matters

To further progress implementation of the 2020 governance review of ACFE, the Board and the department worked together to develop the ACFE System Governance Guidelines to support effective working relationships and strengthen outcomes. The guidelines provide a comprehensive and shared understanding of the roles and responsibilities of the Board, Regional Councils and the department, and other aspects of governance that underpin the ACFE system to support effective working relationships. Training sessions were delivered to the Board, department staff and Regional Council members.

A new co-designed approach is now in place, with an implementation plan to strengthen the 8 ACFE Regional Councils, in response to the 21 recommendations in the Parliamentary Secretary’s Strengthening Regional Councils Review. A framework has been developed and implemented, where the Board sets a small number of annual priorities for Regional Councils that are aligned with its work and with their roles.

Each Regional Council is required to develop an annual workplan that is reported on and discussed by the Board, to consider immediate needs and as key input into its annual planning. This has strengthened the governance link between Regional Councils and the Board, which was a key desired outcome. It has allowed Regional Councils to fulfil their newly articulated dual roles of advice to the Board and advocacy on behalf for the Learn Local sector in their respective regions. These reforms have been well received by Regional Councils, and they are positive about their future and the contribution they can make.

Collaborative relationships are being fostered by the Board with the Office of TAFE Coordination and Delivery, to build and systemise Learn Local and TAFE two-way pathways, co-designed programs and other collaborative opportunities.

The Board has also commenced working with the Victorian Skills Authority to make sure that pre-accredited training and the Learn Local sector are part of the Victorian Skills Plan and the collaborative model that fosters inclusion to meet the workforce and training needs of Victoria.

This work will provide important evidence that the Board will consider in its annual planning. The exchange of information and involvement in joint work across the state, including working across all areas of the Victorian Skills Authority, such as Skills and Job Centres, remains a focus for the Board into the future.

Brand and Value Proposition project

The Brand and Value Proposition project is a major piece of work that aims to create a meaningful brand and value proposition. This project will champion and promote the value of the Learn Local sector and Learn Local courses to the Victorian community and economy, including learners, community, industry, TAFE institutes, job agencies and other key stakeholders.

As the brand and value proposition underpins all of the Board’s work, this project is closely aligned with, and informs all of, the Board’s major projects and initiatives.

In 2021–22, a Communications Impact Map was developed to report on implementation of the plan. The map provides baseline data that future maps can be compared against, to assess the effectiveness of the implementation.

The finalised evaluation report indicated a high engagement rate with the Learn Local Skills Campaign and overall positive feedback. The results are informing current work, including Board‑funded multi-faceted promotional work that uses both state and local approaches, based on working with the sector. There is a greater focus on engagement with stakeholders, including culturally and linguistically diverse communities, Koorie communities and other learner groups, and key community groups. It also informed market research and concept testing, and partnering with the Department of Jobs, Precincts and Regions and the Department of Families, Fairness and Housing, through collaborative approaches to maximise impact.

Regional stakeholder profiles were finalised for all ACFE regions. They provide key data and insights to help the Board, Regional Councils and department representatives engage with stakeholders at the regional level. They will enable Board and department representatives to identify priority stakeholder groups and trends across multiple Regional Council areas.

Work also progressed on the Learn Local Brand Recognition and Baseline Measurement project. This multi-year project gathers baseline measures for brand recognition of Learn Local among key stakeholders. It sets annual targets to assist the Board and the department to establish a prompted brand recognition target of adult community education provision and purpose among potential learners, small-to-medium-sized businesses in relevant industries, and TAFE institutes. A secondary objective of the project is to develop an understanding of the ‘most in need’ potential learner cohort. The final report, developed by KPMG, establishes short- and long-term brand recognition targets, and provides a number of recommendations to improve brand recognition awareness.

Other work completed during 2021–22 included a draft Stakeholder Engagement Plan, a range of collateral to promote Learn Local providers and pre-accredited training and updated Learn Local Brand Guidelines. This work will be further developed as part of building the sector's profile and promoting its value and importance.

2021 Learn Local Awards

The Victorian Learn Local Awards promote ACFE by recognising the outstanding achievements of learners, practitioners and Learn Local providers. They reward best practice and innovation, and encourage high standards. The awards in 2021 were an opportunity to celebrate the resilience of the Learn Local sector and the 15th anniversary of the awards.

Presentations were made to the 2021 award winners at an in-person gala on Friday 10 December 2021. The gala was hosted by MC Gorgi Coughlan. Prize money totalling $84,000 was awarded to:

• The Ro Allen Award – Learn Local Pre-accredited Learner (Skills for study and life):
  • Omer Ntunzwenimana, Sunraysia Mallee Ethnic Communities Council
• Victorian Learn Local Young Pre-accredited Learner (Skills for work) Award:
  • Mariam Yacoub Ibrahim, Farnham Street Neighbourhood Learning Centre
• Victorian Learn Local Pre-accredited Trainer Award:
  • Robyn Matthews, Loddon Campaspe Multicultural Services
• Victorian Learn Local Leadership Award:
  • Rana Tbaileh, Banksia Gardens Community Services
• Victorian Learn Local Pre-accredited Program Award (For small providers):
  • Starting Work in Australia – Karen Engineering Studies (Loddon Campaspe Multicultural Services)
• Victorian Learn Local Pre-accredited Program Award (For large providers):
  • Catering for Success, The Basin Community House Inc.
• Victorian Learn Local Innovation Award:
  • Starting Work in Australia, Karen Engineering Studies (Loddon Campaspe Multicultural Services)
• Victorian Learn Local Partnership Award:
  • Starting Work in Australia, Karen Engineering Studies (Loddon Campaspe Multicultural Services)

2021 Victorian Training Awards – Victorian Community Training Provider of the Year

For the 7th time, the Board sponsored the Victorian Community Training Provider of the Year Award at the annual Victorian Training Awards. The award was open to Learn Local providers, and awarded to an organisation demonstrating innovation and excellence in local community education.

The winner was judged on its:

• design and implementation of quality training programs that are highly valued by the local community and responsive to learner needs
• understanding of the local community and how to attract learners facing barriers to participation and attainment in vocational training
• partnerships and participation in broader service delivery in the local community.

Williamstown Community and Education Centre was announced as Community Training Provider of the Year at the 2021 Victorian Training Awards. The centre runs community education and employment programs across 5 sites in Melbourne's western suburbs. The organisation prides itself on having increased the number and range of services on offer to the diverse community within the area in recent years. It provides traditional services, such as digital literacy training and English language programs, for culturally and linguistically diverse learners, while also recently introducing innovative classes in yoga, meditation, acting and music.

The financial statements cover the Adult, Community and Further Education Board as an individual reporting entity under the Education and Training Reform Act 2006. The Board is a statutory authority under the Education and Training Reform Act 2006. It reports separately to Parliament through the Minister for Higher Education, Minister for Training and Skills and Minister for Agriculture.

The Board’s principal address is:

Adult, Community and Further Education Board
Level 3
2 Treasury Place
East Melbourne VIC 3002

A description of the nature of the Board’s operations and its principal activities is included in the report of operations, which does not form part of these financial statements.

Objectives and funding

The Board’s overall objective is to support the expansion of adult community education across all learner groups, qualification levels and industry sectors, and to develop a strong Learn Local provider base that is responsive to industry and community needs. The Board is predominantly funded by accrual‑based parliamentary appropriations.

Basis of preparation

These financial statements are presented in Australian dollars and prepared in accordance with the historical cost convention.

The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

Income, expenses and assets are recognised net of GST unless the GST is not recoverable from the taxation authority. In this case, it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods affected by the revision. Judgements and assumptions made by management in the application of Australian Accounting Standards (AASs) that have significant effects on the financial statements and estimates, with a risk of material adjustments in the subsequent reporting period, are disclosed throughout the notes to the financial statements.

Amounts in the financial statements have been rounded to the nearest 1,000 dollars unless otherwise stated. Figures in the financial statements may not equate due to rounding.

Compliance information

These general-purpose financial statements have been prepared in accordance with the Financial Management Act 1994 (FMA), applicable Financial Reporting Directions (FRDs) and applicable AASs, which include interpretations, issued by the Australian Accounting Standards Board (AASB). In particular, they are presented in a manner consistent with the requirements of the AASB 1049 ‘Whole of Government and General Government Sector Financial Reporting’.

Where appropriate, those paragraphs of the AASs applicable to not-for-profit entities have been applied. Accounting policies are selected and applied in a manner that ensures the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

COVID-19 environment

The Board has continued to consider the impacts of the COVID-19 environment on the Board’s operations, financial position and cash flows during the year. COVID-19 has continued to present challenges to the sector. To support training providers to navigate the economic impacts of COVID-19 and in line with advice from the department, the Board continued to release contracted grant payments as training providers have satisfied their contract requirements through Board-approved modified/alternative activities where necessary.

Management has considered the impacts of COVID-19 on the judgements and assumptions applied to accounting policies. The impacts and assessments have been considered on assets and liabilities which are detailed in Note 6 ‘Receivables’ and Note 9 ‘Financial Instruments’.

Income is recognised to the extent that it is probable that the economic benefits will flow to the entity and the income can be reliably measured.

Grants

State government grants, received by the Board during a reporting period, are recognised as income of that reporting period consistent with AASB 1058 ‘Income of Not-for-Profit Entities’. Income from grants without sufficiently specific performance obligations, or that are not enforceable, is recognised when the Board has an unconditional right to receive cash which coincides with the receipt of grant funding from the department.

Services received free of charge

Contributions of services received free of charge are recognised at fair value when control is obtained over them, irrespective of whether these contributions are subject to restrictions or conditions over their use. In accordance with AASB 1058 ‘Income of Not-for-Profit Entities’ income in the form of services is only recognised when a fair value can be reliably determined, and the services would have been purchased if they had not been received as a donation.

The fair value of services received free of charge is measured based on an allocation of estimated time incurred by department staff in supporting the Board, and includes relevant employee benefits (including oncosts), contractors support and overheads.

Grants and transfer payments

Grants and other transfers to third parties (other than contributions to owners) are recognised as an expense in the reporting period in which they are paid or payable. They include transactions such as grants, subsidies and other transfer payments to educational providers.

Operating expenses

Operating expenses generally represent the day-to-day running costs incurred in the normal operations of the Board. These items are recognised as an expense in the reporting period in which they are incurred.

Services provided free of charge

Contributions of resources provided free of charge are recognised at their fair value once control is obtained over them, irrespective of whether restrictions or conditions are imposed over their use. Contributions in the form of services are only recognised when a fair value can be reliably determined, and the services would have been purchased if they had not been donated.

The fair value of services provided free of charge equals the services received free of charge from the Department of Education in supporting the operation of the Board.

‘Other economic flows included in net result’ are changes in the volume or value of an asset or liability that do not result from transactions. They include:

• gains and losses from disposals and impairments of non-financial physical and intangible assets
• fair value changes of financial instruments
• gains and losses on remeasuring available‑for‑sale financial assets.

Net gain/(loss) on financial instruments

Net gain/(loss) on financial instruments includes:

• realised/unrealised gains and losses from revaluations of financial instruments at fair value
• impairment and reversal of impairment for financial instruments at amortised cost
• disposals of financial assets and derecognition of financial liabilities.

Revaluations of financial instruments at fair value

At the end of each reporting period, the Board assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. Objective evidence includes financial difficulties of the debtor identified and recorded in the Board’s provider risk register and default payments. All financial assets, except for those measured at fair value through profit or loss, are subject to annual review for impairment.

Receivables are assessed for impairment and bad debts on a regular basis. Those bad debts considered as written off through mutual consent are classified as a transaction expense. Bad debts not written off by mutual consent and the impairment of receivables are classified as other economic flows in net result.

Receivables consist of:

• contractual receivables, such as debtors in relation to goods and services
• statutory receivables, such as amounts owing from the Victorian GST.

Contractual receivables are classified as financial instruments. Statutory receivables are not classified as financial instruments because they do not arise from a contract.

Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest method, less expected credit losses. Expected credit loss is classified as other economic flows in the net result. Contractual receivables are written off when there is no reasonable expectation of recovery and impairment losses are classified as a transaction expense. Subsequent recoveries of amounts previously written off are credited against the same line item.

Details on the Board’s impairment policies, exposure to credit risk, and the calculation of the loss allowance are set out in Note 9 ‘Financial instruments’.

Payables consist of:

• contractual payables, such as accounts payable and expenditure accruals. Contractual payables represent liabilities for goods and services provided to the Board before the end of the financial year that are unpaid and arise when the Board becomes obliged to make future payments in respect of the purchase of those goods and services.
• statutory payables, such as GST.

Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost. Statutory payables are recognised and measured similarly to contractual payables but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from a contract.

Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively. As at 30 June 2022, the Board had no knowledge of any contingent assets or contingent liabilities (2021 – Nil).

Financial risk management objectives and policies

The Board’s principal financial instruments comprise:

• receivables (excluding statutory receivables)
• payables (excluding statutory payables).

The main purpose in holding financial instruments is to prudentially manage the Board’s financial risks within government policy parameters.

The Board’s main financial risks include credit risk and liquidity risk. The Board has overall responsibility for the establishment and oversight of its risk management framework.

Credit risk

Credit risk arises from the contractual financial assets of the Board, which comprise contractual receivables. The Board’s exposure to credit risk arises from potential default of a counterparty on its contractual obligations, resulting in financial loss to the Board.

Credit risk associated with the Board’s contractual receivables is minimal, because the main debtor is the Victorian Government. For debtors other than the government, it is the Board’s policy to deal only with organisations that meet the standard financial viability requirements.

There are no financial assets that have had their terms renegotiated to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated.

Liquidity risk

Liquidity risk is the risk that the Board would be unable to meet its financial obligations as and when they fall due. The Board’s exposure to liquidity risks is deemed insignificant, as no obligation to allocate funding is entered into without securing appropriate sources to meet the commitments.

Measurement basis and accounting policy

The Board considers the carrying amount of financial instrument assets and liabilities recorded in the financial statements to be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they will be paid in full. The fair values and net fair values of financial instrument assets and liabilities are determined as follows:

• The fair value of financial instrument assets and liabilities with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices.
• The fair value of other financial instrument assets and liabilities are determined in accordance with generally accepted pricing models based on discounted cash flow analysis.

Contractual financial assets

The Board applies the AASB 9 ‘Financial Instruments’ simplified approach for all contractual receivables to measure expected credit losses using a lifetime expected loss allowance based on assumptions about the risk of default and expected loss rates. The Board has grouped contractual receivables on shared credit risk characteristics and days past due and selected the expected credit loss rate based on past history, existing market conditions, as well as forward-looking estimates at the end of the financial year.

(i) The expected credit loss considers the impact that COVID-19 had on debtors trading conditions

Ageing analysis of contractual financial liabilities

In accordance with the Ministerial Directions issued by the Assistant Treasurer under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period.

The persons who held the positions of Minister and Accountable Officer on the Board are as follows:

Responsible Minister

• The Hon Gayle Tierney MP (1 July 2021 – 30 June 2022)

The following persons acted in the absence of the responsible Minister during the year:

• The Hon Ingrid Stitt MP (3–10 July 2021, and 7–10 January 2022)
• The Hon James Merlino MP (21–22 September 2021, and 11–27 January 2022)

Accountable Officer

• Ms Jeanette Nagorcka (1 July 2021 – 30 June 2022)

The following officers acted in the absence of Ms Jeanette Nagorcka during the year:

• Mr Simon Booth (4–14 January 2022)

Significant transactions with government-related entities

During the year, the Board had the following significant government-related entity transactions:

• receipt of grant funding from the Department of Education and Training ($32.1 million), together with resources received free of charge ($6.0 million), to undertake legislative responsibilities
• payments to the Department of Health and Human Services ($0.2 million) for the support of a grants management system
• payments to the Centre for Adult Education ($0.8 million) and AMES Australia ($1.3 million) for the delivery of educational services.

Key management personnel and related parties

Related parties of the Board include all key management personnel and their close family members and personal business interests (controlled entities, joint ventures and entities they may have significant influence over). Other related parties include Victorian Cabinet ministers (including their close family members) and public sector entities that are controlled and consolidated into the whole of government consolidated financial statements.

Key management personnel of the Board include:

• Board members
• Minister for Higher Education, Minister for Training and Skills and Minister for Agriculture in the Parliament of Victoria
• Accountable Officer.

The compensation detailed below excludes salaries and benefits that the portfolio Minister received. The Minister’s remuneration and allowances are set by the Parliamentary Salaries and Superannuation Act 1968 and are reported in the Department of Parliamentary Services’ Financial Report.

Remuneration of key management personnel

Other than ministers and accountable officers, the number of key management personnel and their total remuneration during the reporting period are shown in the table below. Remuneration comprises employee benefits in all forms of consideration paid, payable or provided by the entity, or on behalf of the entity, in exchange for services rendered, and is disclosed in the following categories:

• Short-term employee benefits include amounts such as wages, salaries, annual leave or sick leave that are usually paid or payable on a regular basis, as well as non-monetary benefits such as allowances and free or subsidised goods or services.
• Post-employment benefits include pensions and other retirement benefits paid or payable on a discrete basis when employment has ceased.
• Other long-term benefits include long service leave, other long service benefits or deferred compensation.
• Termination benefits include termination of employment payments, such as severance packages.

(i) Board members do not fall within employee definitions.

Remuneration of Accountable Officer

The Accountable Officer is an executive officer employed by the Department of Education and Training, with information on remuneration disclosed in the department’s financial statements. The Board recognises the indirect cost associated with the Accountable Officer’s time within the services free of charge recognised in the operating statement.

Retirement benefits of responsible persons

There were no retirement benefits made in connection with retirement of responsible persons of the reporting entity.

Transactions and balances with key management personnel and other related parties

During the reporting period, no responsible person received or was entitled to receive any benefit (other than remuneration disclosed in the financial report) from a contract between the Board and that responsible person or a firm or company of which that responsible person is a member or has a substantial interest.

During the reporting period, Adult Learning Australia undertook maintenance of Learn Local digital assets. During the 2021–22 financial year, a one-year extension was authorised by the department. While Ms Sally Brennan was a Board member of both the Adult, Community and Further Education Board and Adult Learning Australia, there was no consultation with, or involvement from, Board members in the contract amendment or extension.

Outside normal citizen-type transactions, there were no other related-party transactions that involved key management personnel, their close family members or their personal business interests. No provision has been required, nor any expense recognised, for impairment of receivables from related parties. Other related transactions and loans requiring disclosure under the Directions of the Assistant Treasurer have been considered and there are no matters to report.

There is no remuneration of executive officers (other than the Accountable Officer) to be reported for the accounting period, as it was paid by the Department of Education and Training.

The State of Victoria released the ‘Stay Well In Winter’ campaign on Thursday 12 July 2022, requesting employers to consider working from home arrangements, in an effort to control the spread of COVID-19. While these recommendations modified the manner in which entities operate, there are no known significant financial impacts on the Board’s operations, future results and financial position requiring disclosure after the reporting date.

No other matters or circumstances have arisen since the end of the financial year which significantly affected or may affect the operations, the results of operations or the state of affairs of the Board in future financial years.

Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are not recognised in the balance sheet but are disclosed at their nominal value and inclusive of GST payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant individual projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised in the balance sheet.

Cash and deposits

The Board does not hold a bank account with any financial institution. Total approved appropriations for the relevant period are transferred by the Department of Education and Training to the Board, in a phased manner throughout the financial year via inter-entity transactions.

Comprehensive operating statement

The comprehensive operating statement comprises 3 components: ‘net result from transactions’ (or ‘net operating balance’), ‘other economic flows included in net result’ and ‘other economic flows – other comprehensive income’. The sum of the first two, together with the net result from discontinued operations, represents the net result.

The ‘net result from transactions’ or ‘net operating balance’ is a key fiscal aggregate and is derived by income from transactions minus expenses from transactions. It is a summary measure of the ongoing sustainability of operations. It excludes gains and losses resulting from changes in price levels and other changes in the volume of assets. It is the component of the change in net worth that is due to transactions and can be attributed directly to government policies.

‘Transactions’ are those economic flows that are considered to result from policy decisions, usually interactions between two entities by mutual agreement. Transactions also include flows within an entity, such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset. Taxation is regarded as mutually agreed interactions between the government and taxpayers.

Transactions can be in kind (for example, assets provided or given free of charge or for nominal consideration) or where the final consideration is cash.

Balance sheet

Assets and liabilities are presented in liquidity order, with assets aggregated into financial assets and non-financial assets.

Current and non-current assets and liabilities (those expected to be recovered or settled beyond 12 months) are disclosed in the notes, where relevant.

Statement of changes in equity

The statement of changes in equity presents reconciliations of each non-owner and owner equity opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period.

It also separately shows the changes due to amounts recognised in the ‘comprehensive result’ and amounts recognised in ‘other economic flows – other movements in equity’ related to ‘transactions with owner in its capacity as owner’.

Cash flow statement

Cash flows are classified according to whether they arise from operating activities, investing activities, or financial activities. This classification is consistent with requirements in AASB 107 ‘Statement of Cash Flows’.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables on the balance sheet.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities that are recoverable from, or payable to, the taxation authority, are presented as operating cash flow.

Australian Accounting Standards (AASs) issued that are not yet effective

Certain new accounting standards and interpretations have been published but are not mandatory for the 30 June 2022 reporting period. The Board assesses the impact of these new standards to determine their applicability and early adoption where applicable.

As at 30 June 2022, the following standards and interpretations that are applicable to the Board had been issued but were not made mandatory for the financial year ending 30 June 2022. The Board has not and does not intend to adopt these standards early.

In addition to the new standards and amendments outlined in the table above, the AASB has issued a list of other amending standards that are not effective for the 2021–22 reporting period (as listed below). In general, these amending standards include editorial and reference changes that are expected to have insignificant impacts on public sector reporting:

AASB 2020–3 Amendments to Australian Accounting Standards – Annual Improvements 2018–20 and Other Amendments.

AASB 2021–2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definitions of Accounting Estimates.

AASB 2021–6 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies: Tier 2 and Other Australian Accounting Standards.

AASB 2021–7 Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB 10 and AASB 128 and Editorial Corrections.

The Annual Report of the Board is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of our compliance with statutory disclosure requirements.

The following grant payments were made to certain companies and organisations during 2021–22: