Pandemic, population, and popularity: Clouds remain for Qld educators

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Pandemic, population, and popularity: Clouds remain for Qld educators

By Matt Dennien

Clouds still hang over the future of the Queensland education sector, amid the ongoing pandemic recovery, continued slide in TAFE numbers and rapid population growth statewide, the latest Queensland Audit Office report shows.

The summary of financial audits has flagged headwinds for the state’s public universities, despite a better than expected year for most, ongoing concerns about the financial viability of TAFE Queensland and ballooning state schools.

Despite four of the state’s seven public universities budgeting for a loss in 2021 amid ongoing international border closures, only Central Queensland University ended the year in the red.

Despite four of the state’s seven public universities budgeting for a loss in 2021 amid ongoing international border closures, only Central Queensland University ended the year in the red.Credit:Glenn Hunt

Covering the state’s education and employment departments, seven public universities and TAFE Queensland — among other sector bodies — Auditor-General Brendan Worrall tabled the report on Thursday as steady national jobs figures revealed record workforce participation.

Despite four of the state’s seven public universities budgeting for a loss in 2021 amid ongoing international border closures, only Central Queensland University ended the year in the red largely due to its heightened reliance on international course income, the audit office found.

The turnaround for others was down to better investment returns, the effects of pandemic response staffing changes and increased federal government funding, some of which was not guaranteed into the future amid uncertainty over a return to pre-pandemic international student numbers.

“Most are in a sound position and ... their positions have improved since last year,” the report said.

However, TAFE Queensland — set to report a $22 million loss this year after state government COVID-19 support funding allowed it to scrape by on a slim $2.2 million profit last year — continues to face “significant financial challenges” associated with its competition against private providers.

TAFE would need to rely on government grants to cover operating expenses, and in particular higher employee expenses under enterprise bargaining agreements not faced by private competitors, unless there were “significant changes in overall market settings”.

The audit office noted that a new national skills agreement between state, territory, and the Commonwealth governments was expected to be developed in 2022 and would likely bring changes affecting vocational education and training providers including TAFE and CQU.

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    The report also covered resource maintenance among the education sector, with land, buildings and equipment accounting for 81.3 per cent of its total asset pool. While universities were the better performers, some detail about the condition of assets used in maintenance plans for state school and TAFE sites was more than five years old.

    Despite a net gain of 23 new schools since 2011, most in the highest growth areas, the overall ratio of population to schools has jumped by 14.4 per cent statewide. This indicated that rather than the number of schools matching population growth, they had instead become larger.

    The report made two recommendations. The first, for TAFE Queensland, called for a better understanding about the cost of its service delivery and continued work on strategies to boost student revenue and market share.

    A second recommendation for the state government departments called for more regular and timely assessment of the condition of their assets.

    The heads of both departments accepted the recommendations, with Department of Employment, Small Business and Training director-general Warwick Agnew saying a new condition assessment started at two TAFE sites this year would inform a full review before July 2023.

    “The Department will also continue to work alongside TAFE Queensland and in conjunction with central agencies to design and implement strategies to support TAFE Queensland’s broader financial sustainability,” Agnew said in his response published alongside the report.

    The audit office also provided a copy of the report to the responsible ministers, TAFE Queensland’s chief executive and board chairperson, and university heads, but no responses were included in the published copy.

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