Audit and Risk Committee membership and roles In accordance with legislative requirements, the Board operates an Audit and Risk Committee. The Committee oversees: Risk management. Financial management, performance and sustainability reporting. Compliance with legislation, regulations and standards. External audit. Internal audit. In 2017–18, the independent members of this committee were: Lisa Woolmer (Chairperson). Sue Christophers. Michael Grogan. John Maddock (12 April–30 June 2018). Andrea McCall. Ron Wilson (1 July 2017–12 April 2018). Finance Committee membership and roles The Board also operates a Finance Committee. The Finance Committee: Advises the Board regarding funding allocation setting. Monitors financial performance against Board funding allocations. Advises the Board regarding the treatment of unrecoverable debts. Ensures effective oversight of financial resources in alignment with Board objectives. Leads improvements to Board financial efficiency and sustainability. In 2017–18, the members of this committee were: John Maddock (Chairperson). Sue Christophers. Andrea McCall. Michael Grogan.
Note 6 Receivables Receivables 30 June 2018 $’000 30 June 2017 $’000 Contractual receivables Trade & other receivables 369 541 Allowance for doubtful debts (218) (286) Total contractual receivables 151 255 Statutory receivables Receivable from Victorian Government 11,317 13,253 GST input tax credit recoverable 168 69 Total statutory receivables 11,485 13,322 Total receivables 11,636 13,577 Receivables consist of: Contractual receivables, such as debtors in relation to goods and services and loans to third parties. Statutory receivables, such as amounts owing from the Victorian Government and Goods and Services Tax (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 an allowance for impairment. An allowance for doubtful debts is recognised when there is objective evidence that a contractual receivable may not be collected, with the increase/decrease recognised in the operating result for the relevant financial year. Bad debts are written off in the financial year they are identified. Movement in the provision for doubtful contractual receivables 30 June 2018 $’000 30 June 2017 $’000 Balance at beginning of the year (286) (459) (Increase)/decrease in allowance recognised in surplus or deficit 68 173 Balance at end of the year (218) (286)
Provision of impairment for contractual receivables is recognised when there is objective evidence that the Board will not be able to collect a receivable. Objective evidence includes financial difficulties and default on payments. Ageing analysis of contractual financial assets 2018 Assets Carrying amount $’000 Not passed due and not impaired $’000 Past due but not impaired Impaired amount $’000 Less than 1 month $’000 1 to 3 months $’000 3 to 12 months $’000 1 to 5 years $’000 Contractual receivables 151 31 - - - 120 218 Total 151 31 - - - 120 218 2017 Assets Carrying amount $’000 Not passed due and not impaired $’000 Past due but not impaired Less than 1 month $’000 1 to 3 months $’000 3 to 12 months $’000 1 to 5 years $’000 Impaired amount $’000 Contractual receivables 255 - - 54 21 180 286 Total 255 - - 54 21 180 286 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 as insignificant as no obligation to allocate funding is entered into without appropriate sources to meet the commitments having been secured by the Board. Ageing analysis of contractual financial liabilities 2018 Liabilities Carrying amount $’000 Nominal amount $’000 Maturity dates Less than 1 month $’000 1 to 3 months $’000 3 to 12 months $’000 1 to 5 years $’000 Contractual payables 2,155 2,155 522 1,633 - - Total 2,155 2,155 522 1,633 - - 2017 Liabilities Carrying amount $’000 Nominal amount $’000 Maturity dates Less than 1 month $’000 1 to 3 months $’000 3 to 12 months $’000 1 to 5 years $’000 Contractual payables 1,044 1,044 313 731 - - Total 1,044 1,044 313 731 - -
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 state consolidated financial statements. Key management personnel of the Board include: Board members. The Minister for Training and Skills in the Parliament of Victoria. Accountable Officer. Entity Key Management Personnel Position title Period Parliament of Victoria Hon Gayle Tierney MP Minister for Training and Skills 1 July 2017 – 30 June 2018 Board Dr Xavier Csar Accountable Officer 1 July 2017 – 30 June 2018 Board Ms Heather Whitaker Acting Accountable Officer 24 January 2018 – 29 January 2018 11 June 2018 – 30 June 2018 Board Mr Phil D’Adamo Acting Accountable Officer 25 September 2017 – 6 October 2017 Board Mr Ryan Collins Acting Accountable Officer 1 July 2017 – 21 July 2017 Board Ms Susan Christophers Chair 1 July 2017 – 30 June 2018 Board Dr Ronald Wilson Deputy Chair 1 July 2017 – 30 June 2018 Board Ms Sally Brennan Board Member 1 July 2017 – 30 June 2018 Board Ms Andrea McCall Board Member 1 July 2017 – 30 June 2018 Board Dr Madeleine Laming Board Member 1 July 2017 – 30 April 2018 Board Ms Penny Wilson Board Member 1 July 2017 – 30 June 2018 Board Mr Michael Grogan Board Member 1 July 2017 – 30 June 2018 Board Mr John Maddock Board Member 1 July 2017 – 30 June 2018 Board Ms Winifred Scott Board Member 1 July 2017 – 30 June 2018 Board Ms Helen Coleman Board Member 1 July 2017 – 30 June 2018 Board Dr Fiona Reidy Board Member 10 October 2017 – 30 June 2018 Board Dr Menon Parameswaran Board Member 10 October 2017 – 30 June 2018 The compensation detailed below excludes the salaries and benefits the Portfolio Minister received. The Minister’s remuneration and allowances is set by the Parliamentary Salaries and Superannuation Act 1968 and is reported within the Department of Parliamentary Services’ Financial Report.
AASB 2014-1 Amendments to Australian Accounting Standards [Part E Financial Instruments] Amends various AASs to reflect the AASB’s decision to defer the mandatory application date of AASB 9 to annual reporting periods beginning on or after 1 January 2018 and to amend reduced disclosure requirements. 1 January 2018 AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 Amends various AASs to incorporate the consequential amendments arising from the issuance of AASB 9. 1 January 2018 AASB 15 Revenue from Contracts with Customers The core principle of AASB 15 requires an entity to recognise revenue when the entity satisfies a performance obligation by transferring a promised good or service to a customer. Note that amending standard AASB 2015-8 Amendments to Australian Accounting Standards – Effective Date of AASB 15 has deferred the effective date of AASB 15 by one year. 1 January 2018 AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15 Amends the measurement of trade receivables and the recognition of dividends. Trade receivables, that do not have a significant financing component, are to be measured at their transaction price, at initial recognition. Dividends are recognised in the profit and loss only when: The entity’s right to receive payment of the dividend is established; it is probable that the economic benefits associated with the dividend will flow to the entity. The amount can be measured reliably. 1 January 2018 AASB 2015-8 Amendments to Australian Accounting Standards – Effective Date of AASB 15 This Standard defers the mandatory effective date of AASB 15 from 1 January 2017 to 1 January 2018. 1 January 2018 AASB 2016-7 Amendments to Australian Accounting Standards – Deferral of AASB 15 for Not-for-Profit Entities This standard defers the mandatory effective date of AASB 15 for notfor-profit entities from 1 January 2018 to 1 January 2019. 1 January 2019
AASB 2016-3 Amendments to Australian Accounting Standards – Clarifications to AASB 15 This Standard amends AASB 15 to clarify the requirements on identifying performance obligations, principal versus agent considerations and the timing of recognising revenue from granting a licence. The amendments require: Promise to transfer to a customer a good or service that is ‘distinct’ to be recognised as a separate performance obligation. For items purchased online, the entity is a principal if it obtains control of the good or service prior to transferring to the customer. For licences identified as being distinct from other goods or services in a contract, entities need to determine whether the licence transfers to the customer over time (right to use) or at a point in time (right to access). 1 January 2018 AASB 16 Leases The key changes introduced by AASB 16 include the recognition of most operating leases (which are currently not recognised) on balance sheet. 1 January 2019 AASB 1058 Income of Not-for-Profit Entities This Standard will replace AASB 1004 Contributions and establishes principles for transactions that are not within the scope of AASB 15, where the consideration to acquire an asset is significantly less than fair value to enable not-for-profit entities to further their objectives. 1 January 2019 AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities This Standard amends AASB 9 and AASB 15 to include requirements and implementation guidance to assist not-for-profit entities in applying the respective standards to particular transactions and events. 1 January 2019 In addition to the new standards and amendments above, the AASB has issued a list of other amending standards that are not effective for the 2017 to 2018 reporting period (as listed below). In general, these amending standards include editorial and references changes that are expected to have insignificant impacts on public sector reporting. AASB 2016-6 Amendments to Australian Accounting Standards – Applying AASB 9 Financial Instruments with AASB 4 Insurance Contracts