Technical Education Trust Funds

TECHNICAL EDUCATION TRUST FUNDS

Audited Financial Statements

Table of Contents

Statement by the Statutory Trustee 2

Statement of Comprehensive Income 3

Statement of Financial Position 4

Statement of Changes in Equity 5

Statement of Cash Flows 6

Notes to and forming part of the Financial Statements 7

1. Summary of significant accounting policies 7

2. Revenue and expenses 2

3. Cash and cash equivalents 3

4. Receivables 3

5. Other financial assets 3

6. Payables 4

7. Accumulated funds for each Trust Fund at the end of the reporting period 4

8. Reconciliation of cash flows 5

9. Commitments 5

10. Contingent liabilities 5

11. Financial instruments 5

12. Events after the reporting period 8

Start of Audited Financial Statements

TECHNICAL EDUCATION TRUST FUNDS

Statement by the Statutory Trustee

For the year ended 31 December 2016

Pursuant to Section 41C of the Public Finance and Audit Act 1983 and Section 7 of the Public Finance and Audit Regulation 2015, I state that in my opinion:

1. the accompanying financial statements exhibit a true and fair view of the financial position of the Technical Education Trust Funds as at 31 December 2016 and the financial performance for the year then ended.

2. the financial statements have been prepared in accordance with the provisions of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2015, the Treasurer's Directions and applicable Australian Accounting Standards and Interpretations.

At the date of signing this statement, I am not aware of any circumstances which would render any particulars included in the financial statements misleading or inaccurate.

Jon Black

Statutory Trustee

Date: 19 April 2017

TECHNICAL EDUCATION TRUST FUNDS

Statement of Comprehensive Income

For the year ended 31 December 2016

/ Notes / 2016
$ / 2015
$ /
Revenue / 2(a) / 17,176 / 20,240
Total revenue / 17,176 / 20,240
Expenses / 2(b) / 13,650 / 15,315
Total expenses / 13,650 / 15,315
Net result / 3,526 / 4,925
Other Comprehensive Income / - / -
Total other comprehensive income / - / -
Total Comprehensive Income / 3,526 / 4,925

The accompanying notes form part of these financial statements.

TECHNICAL EDUCATION TRUST FUNDS

Statement of Financial Position

as at 31 December 2016

/ Notes / 2016
$ / 2015
$ /
ASSETS
Current Assets
Cash and cash equivalents / 3 / 52,705 / 47,729
Receivables / 4 / 4,724 / 6,106
Other financial assets / 5 / 164,574 / 164,574
Total Current Assets / 222,003 / 218,409
Non-current Assets
Other financial assets / 5 / 286,150 / 286,150
Total Non-current Assets / 286,150 / 286,150
TOTAL ASSETS / 508,153 / 504,559
LIABILITIES
Current Liabilities
Payables / 6 / 101 / 33
Total Current Liabilities / 101 / 33
TOTAL LIABILITIES / 101 / 33
NET ASSETS / 508,052 / 504,526
EQUITY
Accumulated funds / 7 / 508,052 / 504,526
TOTAL EQUITY / 508,052 / 504,526

The accompanying notes form part of these financial statements.

TECHNICAL EDUCATION TRUST FUNDS

Statement of Changes in Equity

for the year ended 31 December 2016

/ Accumulated Funds
$ / Total
$ /
Balance at 1 January 2016 / 504,526 / 504,526
Net result for the year / 3,526 / 3,526
Other comprehensive income / - / -
Total other comprehensive income / - / -
Total comprehensive income for the year / 3,526 / 3,526
Balance at 31 December 2016 / 508,052 / 508,052
Balance at 1 January 2015 / 499,601 / 499,601
Net result for the year / 4,925 / 4,925
Other comprehensive income / - / -
Total other comprehensive income / - / -
Total comprehensive income for the year / 4,925 / 4,925
Balance at 31 December 2015 / 504,526 / 504,526

The accompanying notes form part of these financial statements.

TECHNICAL EDUCATION TRUST FUNDS

Statement of Cash Flows

for the year ended 31 December 2016

/ Notes / 2016
$ / 2015
$ /
Cash Flows from Operating Activities
Payments
Prize awards
Other / (13,496)
(102) / (15,316)
(33)
Total payments / (13,598) / (15,349)
Receipts
Interest received / 17,904 / 20,832
Other / 671 / 234
Total receipts / 18,574 / 21,066
Net Cash Flows from Operating Activities / 8 / 4,976 / 5,717
Cash Flows from Investing Activities
Other / - / -
Net Cash Flows from Investing Activities / - / -
Net Increase in Cash / 4,976 / 5,717
Opening cash and cash equivalents / 47,729 / 42,012
Closing cash and cash equivalents / 3 / 52,705 / 47,729

The accompanying notes form part of these financial statements.

TECHNICAL EDUCATION TRUST FUNDS

Notes to and forming part of the Financial Statements

For the year ended 31 December 2016

1. Summary of significant accounting policies

(a) Reporting entity

The Technical Education Trust Funds (the Entity) is a New South Wales government entity. The Entity is a not-for-profit entity (as profit is not its principal objective) and it has no cash generating units.

The financial statements for the year ended 31 December 2016 were authorised for issue by the Statutory Trustee on 19 April 2016.

(b) Basis of preparation

The financial statements are general purpose financial statements which have been prepared on an accrual basis in accordance with:

· Applicable Australian Accounting Standards (which include Australian Accounting Interpretations);

· The requirements of the Public Finance and Audit Act 1983 and the Public Finance and Audit Regulation 2015; and

· The Financial Reporting Directions published in the Financial Reporting Code for NSW General Government Sector Entities or issued by the Treasurer.

Judgements, key assumptions and estimations management has made are disclosed in the relevant notes to the financial statements.

All amounts are rounded to the nearest dollar and are expressed in Australian currency.

(c) Statement of compliance

The financial statements and notes comply with Australian Accounting Standards, which include Australian Accounting Interpretations.

(d) Statutory Reporting Period

In terms of Section 4(1A) of the Public Finance and Audit Act 1983, the Treasurer has determined that the financial year of the Entity ends on 31 December.

(e) Income Recognition

Income is measured at the fair value of the consideration or contribution received or receivable.

(i) Investment Revenue

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

TECHNICAL EDUCATION TRUST FUNDS

Notes to the financial statements

For the year ended 31 December 2016

1. Summary of Significant Accounting Policies (continued)

(f) Accounting for the Goods and Services Tax (GST)

Income, expenses and assets are recognised net of the amount of GST, except:

· The amount of GST incurred by the Entity as a purchaser that is not recoverable frm the Australian Taxation Office (ATO) is recognised as part of the cost of acquisition of an asset or as part of an item of expense

· Receivables and payables are stated with the amount of GST included.

Cash flows are included in the statement of cash flows on a gross basis. However, the GST components of cash flows arising from investing which are recoverable from, or payable to, the ATO are classified as operating cash flows.

(g) Cash and cash equivalents

Cash and cash equivalents is cash held at bank.

(h) Receivables

Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. These financial assets are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method, less an allowance for any impairment of receivables. Any changes are recognised in the determination of Total Comprehensive Income for the year when impaired, derecognised or through the amortisation process. There was no change due to impairment, de-recognition or through the amortisation process.

Short-term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.

(i) Other financial assets

Other financial assets are investments that are non-derivative financial assets with fixed or determinable payments and fixed maturity that the Entity has positive intention and ability to hold to maturity. These investments are measured at amortised cost using the effective interest method. These assets represent common trust funds for the moneys entrusted to the Statutory Trustee in accordance with section 8 of the Technical Education Trust Funds Act 1967 (the Act). Interest payments are received for each term deposit every six months and are allocated proportionately according to the amount contributed by each fund to the common trust fund, as required by the Act.

TECHNICAL EDUCATION TRUST FUNDS

Notes to the financial statements

For the year ended 31 December 2016

1. Summary of Significant Accounting Policies (continued)

TECHNICAL EDUCATION TRUST FUNDS

(j) Payables

Payables represent liabilities for goods and services provided and other amounts. Payables are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method. Short-term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.

(k) Equity and reserves

The category 'Accumulated Funds' includes all current and prior period retained funds.

(l) Comparative information

Except when an Australian Accounting Standard permits or requires otherwise, comparative information is presented in respect of the previous period for all amounts reported in the financial statements.

(m) Changes in accounting policy, including new or revised Australian Accounting Standards:

i. Effective for the first time in 2016

The accounting policies applied in 2016 are consistent with those of the previous financial year except as a result of the following new or revised Australian Accounting Standards that have been applied for the first time in 2016. The impact of these standards in the period of initial application includes:

AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 [AASB 7, AASB 101, AASB 134 & AASB 1049]

AASB 2015-2 amends AASB 101 Presentation of Financial Statements based on the IASB’s Disclosure Initiative project. The amendments are designed to encourage entities to apply professional judgement on disclosures. The amendments also clarify that entities should use professional judgement in determining the location and order of information disclosed.

AASB 2015-3 regarding withdrawal of AASB 1031 Materiality

This Standard completes the withdrawal of references to AASB 1031 in all Australian Accounting Standards and Interpretations, allowing AASB 1031 to effectively be withdrawn. This change has been assessed by the Entity and there is no material impact.

Notes to the financial statements

For the year ended 31 December 2016

1. Summary of Significant Accounting Policies (continued)

ii. Issued but not yet effective

NSW public sector entities are not permitted to early adopt new Australian Accounting Standards, unless Treasury determines otherwise.

The following new Accounting Standards issued but not yet effective for the financial year ended 31 December 2016 are not early adopted and would not be expected to have a material impact on the financial statements of the Entity.

· AASB 9 Financial Instruments

· AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014)

· AASB 2015-6 Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities

· AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107

(n) Common Trust Fund

Pursuant to Section 8 of the Act, the Statutory Trustee has established a common fund for moneys held on behalf of each contributing Fund. Records are kept of each contributing funds’ share of the common fund.

(o) Trust Funds Assets

Apart from funds invested as fixed term deposits, the Entity held no fixed assets, nor owned or occupied land as at 31 December 2016.

(p) Entity Financial Records

Accounting and other records for the Entity were maintained by the NSW TAFE Commission (the Commission) on behalf of the Statutory Trustee. All administration costs, including salary and wages, were met by the Commission. The Commission does not charge for these costs. The Treasurer of NSW has approved the waiving of audit fees for the Entity.

TECHNICAL EDUCATION TRUST FUNDS

Notes to the financial statements

For the year ended 31 December 2016

2. Revenue and expenses

/ 2016
$ / 2015
$ /
a. Revenue
Interest revenue / 2(c) / 16,509 / 20,240
Other / 667 / -
Total revenue / 17,176 / 20,240
b. Expenses
Prize awards / 2(c) / 13,479 / 15,282
Other expenses / 2(c) / 171 / 33
Total expenses / 13,650 / 15,315

c. The revenue and expenses are attributed to individual funds as follows:

Trust Fund / 2016
Income
$ / 2016
Expend-iture
$ / 2016
Income
$ / 2015
Expend-iture
$ /
Barrington Raymund Roberts Memorial / 3,281 / 2,310 / 4,416 / 3,213
Coachbuilders 1914-1919 War Memorial Bursary / 756 / 13 / 1,007 / 4
Institute of Mechanical Engineering Craftsmen Prize / 813 / - / 191 / -
J. P. Franki Memorial / - / - / 24 / 881
Mary Ellen Roberts Memorial / 306 / 235 / 412 / 330
Noel Chettle Memorial Art Prize / 1,311 / 961 / 1,737 / 1,303
TAFE Bicentenary Oliver Shaul Scholarship / 10,149 / 7,689 / 11,707 / 9,012
William and Elizabeth Cuthbertson Memorial / 560 / 2,442 / 746 / 572
17,176 / 13,650 / 20,240 / 15,315

TECHNICAL EDUCATION TRUST FUNDS

Notes to the financial statements

For the year ended 31 December 2016

3. Cash and cash equivalents

/ 2016
$ / 2015
$ /
Cash at bank / 52,705 / 47,729
Closing Cash at Bank (per Statement of Cash Flows) / 2,705 / 47,729

4. Receivables

/ 2016
$ / 2015
$ /
Interest receivables / 4,512 / 6,106
Other debtors / 212 / -
Total Receivables / 4,724 / 6,106

Details regarding credit risk, liquidity risk and market risk including financial assets that are either past due or impaired are disclosed in Note 11.

5. Other financial assets

/ 2016
$ / 2015
$ /
Current assets / 164,574 / 164,574
Non-current assets / 286,150 / 286,150
450,724 / 450,724
The market value of the investments was not less than the face value.
Details regarding credit risk, liquidity risk and market risk, including a maturity analysis of the above payables are disclosed in Note 11.
Note: the amount of $450,724 ($450,724 in 2015) above is part of total fixed term deposits of $561,462 ($561,462 in 2015) with remaining represented funds held on behalf of TAFE Commission of $110,738 ($110,738 in 2015).