AUDITOR-GENERAL’S REPORT FINANCIAL AUDITS Volume Nine 2009_part2 doc

This is trial version www.adultpdf.com Department of Education and Training AUDIT OPINION The audits of the Department and its controlled entities’ financial reports for the year ended 30 June 2009 resulted in unqualified Independent Auditor’s Reports Unless otherwise stated, the following commentary relates to the parent entity PERFORMANCE INFORMATION The New South Wales State Plan provides the overall direction for improvements in performance and significantly influenced the Department’s priorities for 2009 Its priorities included:  increasing levels of attainment for all students, including increasing the percentage of students exceeding the national benchmarks in reading and numeracy  more students completing Year 12 or recognised vocational training  closing the performance gap between Aboriginal students and all students, at schools and at the New South Wales Technical and Further Education Commission (TAFE NSW)  increasing the proportion of population aged 15-64 participating in vocational education and training The Department measures whether it is achieving its priority outcomes by using performance indicators, such as:     literacy and numeracy year 12 retention rates achievement gap for Aboriginal students government school enrolments Literacy and Numeracy Prior to 2008, the various states and territories had different ways of assessing student progress in literacy and numeracy All Australian schools now use the National Assessment Program – Literacy and Numeracy (NAPLAN) to assess the literacy and numeracy learning of students at Years 3, 5, and Students participate in NAPLAN tests in May of each year and 2009 is the second year of testing This is trial version www.adultpdf.com Auditor-General’s Report to Parliament 2009 Volume Nine _ Department of Education and Training The table below details the 2009 NAPLAN summary results of the percentage of students at or above the national minimum standard: NSW National Years Trend 2009 % 2008 % 2009 Ranking 2009 % 2008 % Reading Year Year Year Year     95.6 93.6 94.8 93.5 95.1 93.5 95.4 94.4 3 93.8 91.7 93.9 92.2 92.1 91.0 94.2 92.9 Writing Year Year Year Year     97.1 94.9 93.7 89.0 97.5 95.1 93.5 88.9 1 95.6 92.8 92.5 87.7 95.4 92.6 91.8 87.2 Spelling Year Year Year Year     94.9 94.6 94.6 91.6 96.1 94.5 94.2 92.2 1 1 92.2 92.4 92.9 89.7 92.5 91.7 92.5 89.8 Punctuation and Grammar Year  Year  Year  Year  94.9 93.7 92.5 91.0 95.2 93.9 93.4 91.4 3 92.5 92.0 92.0 90.3 91.7 91.9 91.6 89.9 Numeracy Year Year Year Year 95.6 95.5 95.1 95.4 96.9 94.4 96.0 94.7 94.0 94.2 94.8 94.9 95.0 92.7 95.4 93.6     Source: Ministerial Council for Education, Early Childhood Develop and Youth Affairs (MCEECDYA) – National Assessment Program – Literacy and Numeracy Summary Report 2009 (unaudited) Notes:  Key:  Trending upwards,  Trending downwards, ~ No trend  The rankings range from one to eight (highest to lowest) The results of the 2009 national tests indicate that New South Wales students:    performed consistently better than the national average performed better in the early years than in the later years in most domains had fewer performing below the national minimum standard This is trial version www.adultpdf.com Auditor-General’s Report to Parliament 2009 Volume Nine Department of Education and Training The Department advised us that it spent $174 million ($116 million in 2007-08) on the literacy and numeracy plan in 2008-09 and an additional $968 million will be spent over the next four years to further improve student literacy and numeracy levels Retention Rates from Years to 12 for Government Schools Year ended 31 December 2008 % 2007 % 2006 % 2005 % 2004 % All students Aboriginal students Students from language backgrounds other than English Students from low socio-economic status backgrounds Geographically isolated students 64.6 32.2 64.5 30.9 65.1 28.7 65.8 29.4 65.8 29.9 106.0 101.8 105.4 109.5 108.2 54.5 41.1 53.2 48.6 52.9 41.3 55.5 45.6 56.4 43.7 Source: DET Statistical Compendium 2008 (unaudited) Notes:  Retention rates are ‘apparent’ as they not track individual students through their secondary schooling  Retention rates for students from low socio-economic status backgrounds and geographically isolated students for 2002 to 2007 and for 2008 are based on participating schools in 2007 and 2008 respectively  Year 12 retention rates can exceed more than 100 per cent due to a number of factors including migration of students from interstate and overseas  Care should be exercised in interpreting changes in apparent retention rates for Aboriginal students and students from geographically isolated areas due to the small numbers involved Over the past five years the retention rates from Years to 12 have remained relatively stable with only minor fluctuations from year to year, retention rate for geographically isolated students are at a five year low In 2008 the Department continued a range of strategies designed to encourage more students to complete Year 12 It expects that the initiatives will start to impact positively on retention rates in 2012 when the 2007 Year students are due to reach Year 12 Retention Rates of Full-time Students for Government Schools by State (2004-2008) for Years 7/8 to 12 Years NSW % 2008 2007 2006 2005 2004 64.6 64.5 65.1 65.8 65.8 Vic % Qld % SA % WA % Tas % NT % ACT % National % 71.9 73.9 72.6 74.0 74.4 70.3 71.1 71.6 73.0 75.3 64.7 64.0 61.9 61.7 58.0 68.2 63.1 65.1 65.4 65.9 61.3 63.3 63.2 65.5 76.0 67.6 69.4 72.3 70.5 72.0 95.9 96.6 103.2 99.6 100.5 68.3 68.3 68.5 69.4 69.9 Source: DET Statistical Compendium 2008 (unaudited) Notes:  Retention rates are ‘apparent’ as they not track individual students through their secondary schooling  Care should be exercised in the interpretation of apparent retention rates as the method of calculation does not take into account a range of factors including: Differing enrolment policies across jurisdictions (which contribute to different age-grade structures) Students enrolled in Year 12 on a part-time basis or repeating a year Movements of students between States and between school sectors Impact of full-fee paying overseas students Varying enrolment patterns in which students choose to complete their secondary schooling at TAFE NSW  Apparent retention rates can exceed more than 100 per cent due to a number of factors including migration of students from interstate and overseas This is trial version www.adultpdf.com Auditor-General’s Report to Parliament 2009 Volume Nine _ Department of Education and Training Although retention rates in New South Wales remained stable in 2008, they fell below the national average The State’s ranking relative to other States and Territories fell from fifth to seventh Full-time Participation Rates for 15 to 24 Year Olds Years NSW National 2008 % 83.4 83.9 2007 % 2006 % 2005 % 2004 % 82.4 83.6 81.8 82.8 82.3 82.2 82.3 81.7 Source: Australian Bureau of Statistics, Survey of Education and Work, 2004-2008 (unaudited) Notes: Full-time participation is defined as participation in full-time education or training or full-time work, or a combination of both part-time education or training and part-time work The Survey of Education and Work estimates the proportion of 15 to 24 year olds participating in full-time education or training, full-time work, or a combination of part-time education or training and part-time work Overall, New South Wales ranked fourth relative to other States and Territories However, when the level of uncertainty associated with these estimates is taken into account, it is likely that only the Australian Capital Territory had a statistically significant higher rate of full-time participation than New South Wales The Department has implemented a number of measures to increase participation by youth at risk to ensure they have access to education that leads to workforce participation Under the Learn or Earn initiative, 12,580 new vocational education and training places will be created between 2007 and 2010 in school and TAFE NSW based trade schools These places will ensure young people up to the age of 18, who not complete Year 12 and have not yet got a job, will have a guaranteed training place at TAFE NSW The employment of 400 new apprentices every year over the next four years by New South Wales Government agencies and utilities will also increase participation for those in the 15 to 19 age group The Achievement Gap for Aboriginal Students Reading and numeracy targets set under the New South Wales State Plan for Aboriginal students are to halve the gaps in minimum and proficient standards that existed in 2008 between Aboriginal students and all students by 2020 This is trial version www.adultpdf.com 10 _Auditor-General’s Report to Parliament 2009 Volume Nine Department of Education and Training The table below details the 2008 NAPLAN Summary Results of the percentage of Aboriginal students against all student peers at or above the national minimum standard and the achievement gap between them: All students Years NSW 2008 % Aboriginal students NSW Ranking National 2008 % NSW 2008 % NSW Ranking Achievement National 2008 % Gap % Reading Year Year Year Year 95.1 93.5 95.4 94.4 3 92.1 91.0 94.2 92.9 83.5 77.6 82.4 82.3 4 68.3 63.4 71.9 70.7 11.6 15.9 13.0 12.1 Writing Year Year Year Year 97.5 95.1 93.5 88.9 1 95.4 92.5 91.8 87.2 90.9 81.7 76.9 67.7 4 78.8 69.7 67.9 59.7 6.6 13.4 16.6 21.2 Spelling Year Year Year Year 96.1 94.5 94.2 92.2 1 2 92.5 91.7 92.5 89.8 86.1 82.1 82.0 78.4 3 69.2 69.7 71.8 67.8 10.0 12.4 12.2 13.8 Punctuation and Grammar Year Year Year Year 95.2 93.9 93.4 91.4 3 91.7 91.9 91.6 89.9 82.2 77.6 75.0 71.2 4 65.3 64.1 62.7 60.7 13.0 16.3 18.4 20.2 Numeracy Year Year Year Year 96.9 94.4 96.0 94.7 3 95.0 92.7 95.4 93.6 88.6 78.9 84.5 80.3 4 78.6 69.2 78.6 72.5 8.3 15.5 11.5 14.4 Source: DET Statistical Compendium 2008 (Sourced from Ministerial Council on Education, Employment, Training and Youth Affairs (MCEETYA) – 2008 National Assessment Program: Literacy and Numeracy Achievement in Reading, Writing and Numeracy) (unaudited) Notes:  At the time of preparing this Report the 2009 NAPLAN results by indigenous status are not available on the MCEETYA website  The rankings range from one to eight (highest to lowest) The results of the 2008 national tests for New South Wales Aboriginal students indicated that:    they performed consistently better than the national average for Aboriginal students the comparison against all students show significant gaps the gaps against all students is less in the early years than in the later years This is trial version www.adultpdf.com Auditor-General’s Report to Parliament 2009 Volume Nine 11 Department of Education and Training The Department has allocated funding of $65.0 million over four years to improve the academic achievements of Aboriginal students, by designing specialised teaching programs in order to reduce the gap The Department advised us that of the $10.7 million allocated in 2008-09 ($13.0 million in 2007-08), $8.4 million was spent ($9.5 million) Government Schools New South Wales’ expenditure per student was lower than the national average for both primary and secondary schools in 2007-08 At 30 June NSW 2007-08 NSW 2006-07 National 2007-08 11,148 13,977 12,324 10,643 13,329 11,756 11,557 14,306 12,639 7 7 Student to Teaching Staff Ratios – Government Schools (b) Primary Secondary Overall 15.9 12.4 14.3 16.2 12.5 14.4 15.6 12.3 14.1 Full–Time Student Enrolment – Government Schools as a percentage of all schools (c) Primary Secondary Overall 69.6 62.0 66.3 69.8 62.4 66.5 69.7 60.8 65.9 4 5 Recurrent Expenditure ($) per student on Government Schools (a) Primary Secondary Overall NSW Ranking NSW Ranking amongst all Previous States and Year (d) Territories (d) (a) Source: Ministerial Council on Education, Employment, Training and Youth Affairs – National Report on Schooling in Australia, 2008 Incorporates both salaries and non-salary costs Includes actual or notional payroll tax and notional eight per cent user cost of capital (unaudited) (b) Source: Australian Bureau of Statistics, Schools Australia 2008 (Table 23) (c) Source: Australian Bureau of Statistics, Schools Australia 2008 (Table 7) (d) The rankings range from one to eight (highest to lowest) Note: Care should be taken when comparing different jurisdictions as areas of non-comparability continue to exist e.g there can be large differences between city and country staff ratios within different jurisdictions Student to teacher ratios for New South Wales were marginally higher than the national average The overall ratio of 14.3 was higher than the New South Wales private sector ratio of 13.7 students per teacher This is trial version www.adultpdf.com 12 _Auditor-General’s Report to Parliament 2009 Volume Nine Department of Education and Training The proportion of all students enrolling in government schools has been declining for the past ten years The most significant decline has been in secondary schools, falling from 66.9 per cent in 1998 to 62 per cent in 2008 The movement of students between sectors now seems to be stabilising The chart below illustrates the decline over the last decade NSW Government School-Proportion of Full Time Enrolments 76 74 72 70 68 % 66 64 62 60 58 56 1998 1999 2000 2001 2002 Primary 2003 2004 Year Secondary 2005 2006 2007 2008 Total Source: Australian Bureau of Statistics, Schools Australia 2008 (Table 7) (unaudited) Workers’ Compensation Claims 2009 Workers’ compensation premium (S’000) Total number of claims incurring cost Number of working days lost Number of stress claims incurring cost Number of working days lost due to stress claims 116,152 5,698 34,304 725 9,234 2008 2007 123,866 6,048 43,231 829 16,733 128,679 6,008 43,721 949 19,816 Source: DET Statistics (unaudited) Workers compensation claims incurring cost reported by the Department reduced by 5.8 per cent in 2008-09 As a result of improved performance workers’ compensation premiums have decreased A number of targeted programs and initiatives have been implemented under the Departments ‘Safe Working and Learning’ strategy to improve both claims and injury management outcomes These initiatives have had success, with the total number of days lost due to workplace injury decreasing by 8,927 days (20.6 per cent) in 2008-09 when compared to 2007-08 Further reductions are anticipated in the frequency, severity and cost of workers’ compensation claims with the continued roll out of programs under the Department’s safety strategy This is trial version www.adultpdf.com Auditor-General’s Report to Parliament 2009 Volume Nine 13 Department of Education and Training OTHER INFORMATION Department We identified some opportunities for improvement to the Department’s accounting and internal control procedures, mainly in the areas of property, plant and equipment recording and payroll These have been reported to management Schools For the school financial year ended 30 November 2008, we audited financial transactions at 62 primary schools and 10 high schools We identified opportunities for schools to improve their internal controls and general compliance with Departmental guidelines, which we reported to school Principals Many of our findings were similar to those of the previous year The Department has advised that they communicate common findings to all schools and direct them to take corrective action Connected Classrooms Program (CCP) The CCP consists of three components with a total investment of $158 million over four years  The Interactive Classroom Project (ICP) will equip every New South Wales public school with an interactive whiteboard, data projector, control computer, network device and video conferencing components  The Learning Tools Project will upgrade student email, individual online working space for all students and teachers and online access to student reports for parents  The Network Bandwidth Enhancement Project, for network upgrades, will increase bandwidth speed and secure browsing and content filtering to better enable interactive learning environments Year ended 30 June Total Budget Over Years $’000 Interactive Classrooms Project Learning Tools Project Network Bandwidth Enhancement Project 2009 Actual Total Costs to Date $’000 $’000 28,477 9,142 17,036 34,523 11,366 25,954 157,887 Total 65,297 28,904 63,686 54,655 71,843 Source: DET Statistics (unaudited) At 30 June 2009, the Department had installed 1,003 (200 in 2007-08) Interactive Classrooms and upgraded 1,628 schools sites with bandwidth The student email service has been upgraded and 1.2 million students across New South Wales public schools now have access to an improved email service, Google’s G-mail Digital Education Revolution (DER) The DER program is funded through the Commonwealth Government’s National Secondary School Computer Fund to provide all secondary students with a 1:1 computer ratio by December 2011 The funding agreements to date amount to $264 million with further funding of $179 million to be made available over five years This is trial version www.adultpdf.com 14 _Auditor-General’s Report to Parliament 2009 Volume Nine Department of Education and Training The Department aims to achieve this ratio by providing a wireless enabled laptop computer to all Years to 12 students for their individual use Contracts awarded to date include:  $150 million to supply approximately 220,000 student laptops  $70.0 million for wireless network access, and  on-costs of $189 million to cover agreed additional expenditure The on-costs agreement includes funding for wireless connectivity, professional learning and curriculum support and the employment of over 400 Technology Support Officers, mostly school based Total expenditure on the DER program to 30 June 2009 was $11.9 million The delivery of student laptops commenced in August 2009 Building Education Revolution (BER) The BER is a $16.2 billion investment by the Commonwealth Government to improve the quality of facilities in Australian schools and generate jobs in the construction industry State Government Schools Funding Total BER Funding Total BER Funding $m NonGovernment Schools Funding $m $m % NSW Vic Qld WA SA Tas ACT NT 3,475 2,583 2,141 1,277 959 332 153 208 1,579 1,247 961 551 433 114 93 65 5,054 3,830 3,102 1,828 1,392 446 246 273 31.2 23.7 19.2 11.3 8.6 2.8 1.5 1.7 Total 11,128 5,043 16,171 100.0 Source: DET Statistics (unaudited) The BER comprises three programs, which include projects to be completed by 2011 Program – Year ended 30 June Primary Schools for the 21st Century National School Pride Science and Language Centres for 21st Century Secondary Schools Total Funding 2009 $m Funding 2010 $m Funding 2011 $m Total Funding $m 98.4 88.4 1,647.5 203.4 1,283.9 3,029.8 291.8 -186.8 153.1 2,004.0 -1,283.9 153.1 3,474.7 Source: DET Statistics (unaudited) This is trial version www.adultpdf.com Auditor-General’s Report to Parliament 2009 Volume Nine 15 Department of Education and Training Primary Schools for the 21st Century This program is to build or upgrade large scale infrastructure such as libraries, halls and classrooms in public primary schools in New South Wales The breakdown of approved funding and payments to 30 June 2009 by region is detailed below: Region Number of Schools 436,554 300,014 99,337 283,515 307,346 173,074 453,753 357,004 177,007 395,746 2,613 2,776 7,210 23,725 1,789 1,457 2,148 764 1,526 2,309 1,782 Total Payments to 30 June 2009 $’000 242 188 106 233 127 162 206 172 162 186 Hunter/Central Coast Illawarra & South East New England North Coast Northern Sydney Riverina South Western Sydney Sydney Western NSW Western Sydney Approved Project Funding $’000 2,983,350 46,317 Source: DET Statistics (unaudited) A managing contractor has been allocated to each region to ensure the timely and professional delivery of projects within the BER guidelines All managing contractors were appointed following a competitive tender National School Pride This program is providing funding of up to $200,000 for primary, secondary and central schools to refurbish and renew existing infrastructure and undertake minor building works Over $287 million will be spent on around 2,180 public schools The projects under this program must be completed by February 2010 Science and Language Centres for 21st Century Secondary Schools This program provides funding to build new or refurbished science laboratories and language learning centres in secondary schools across New South Wales It is estimated that around $151 million will be spent on 118 projects in New South Wales The completion date for these projects is 30 June 2010 Governance The volume of projects and the tight timeframes create risks in ensuring value for money is received from funds expended These risks were recognised by the Government, which has set up the following governance arrangements:  a New South Wales Nation Building and Jobs Plan Taskforce has been established to plan and oversee the Nation Building program and advise offices in education and housing The taskforce reports directly to the Premier and coordinates the reporting of the delivery of the BER program to the Commonwealth A probity plan was established by the taskforce to ensure the probity risks associated with the delivery requirements are appropriately managed and monitored A probity auditor has been appointed to the taskforce This is trial version www.adultpdf.com 16 _Auditor-General’s Report to Parliament 2009 Volume Nine ... Training AUDIT OPINION The audits of the Department and its controlled entities’ financial reports for the year ended 30 June 2009 resulted in unqualified Independent Auditor’s Reports Unless otherwise... 2009 is the second year of testing This is trial version www.adultpdf.com Auditor-General’s Report to Parliament 2009 Volume Nine _ Department of Education and Training ... standard This is trial version www.adultpdf.com Auditor-General’s Report to Parliament 2009 Volume Nine Department of Education and Training