Part 6.1.1. The purpose of this chapter is to - Higher Education Support Act 2003 - Commonwealth Grant Scheme Guidelines (02/06/2004) - 6.1.1. The purpose of this chapter is to specify how the amount of enabling loading for a specified number of Commonwealth supported places under section 33-5 (d) of the Act is to be worked out. Where the allocation of Commonwealth supported places made by the Minister under section 30-10 of the Act specifies a number of places that have an enabling loading, the amount of enabling loading that will be paid for Commonwealth supported places is worked out in the following way. | Zoe
Higher Education Support Act 2003 - Commonwealth Grant Scheme Guidelines (02/06/2004)
6.1.1. The purpose of this chapter is to6.1.1. The purpose of this chapter is to specify how the amount of enabling loading for a specified number of Commonwealth supported places under section 33-5 (d) of the Act is to be worked out. Where the allocation of Commonwealth supported places made by the Minister under section 30-10 of the Act specifies a number of places that have an enabling loading, the amount of enabling loading that will be paid for Commonwealth supported places is worked out in the following way.
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6.1.1. The purpose of this chapter is to specify how the amount of enabling loading for a specified number of Commonwealth supported places under section 33-5 (d) of the Act is to be worked out. Where the allocation of Commonwealth supported places made by the Minister under section 30-10 of the Act specifies a number of places that have an enabling loading, the amount of enabling loading that will be paid for Commonwealth supported places is worked out in the following way.
6.5 ELIGIBILITY
6.5.1 An enabling course means a course of instruction provided to a person for the purpose of enabling the person to undertake a course leading to a higher education award, but does not include:
a) a course leading to a higher education award; or
b) any course that the Minister determines is not an enabling course for the purposes of the Act.
6.10 LOADING CALCULATION
6.10.1 The calculation of the value of the enabling loading involves:
The loading value EQUALS the total funding available for the enabling loading in a given year DIVIDED by the number of EFTSL coded as enabling student load at higher education providers (E490 (Student status) = 261).
6.10.5 The number of EFTSL coded as enabling student load will be based on the most recent student load data available.
6.15 VARIATIONS TO THE LOADING
6.15.1 The total amount of enabling loading for the sector is a fixed amount each year. If student EFTSL in enabling courses rises, the loading per EFTSL would be reduced. If student EFTSL in enabling courses were to drop, the loading per EFTSL would increase. In 2005 and in future years, the enabling loading value will be specified by amendment to these guidelines.
CHAPTER 7 INCREASES IN ASSISTANCE FOR HIGHER EDUCATION PROVIDERS MEETING CERTAIN REQUIREMENTS (Section 33-15)
7.1 PURPOSE
7.1.1 The purpose of this chapter is to set out the requirements known as the National Governance Protocols that higher education providers eligible for grants under the Commonwealth Grant Scheme need to satisfy under section 33-15(1)(a) of the Act and to specify a date for higher education providers to meet these requirements under section 33-15(1)(c) of the Act.
7.1.5 In this chapter, all references to the Corporations Act are to the Corporations Act 2001 (Commonwealth) as in force from time to time.
7.5 NATIONAL GOVERNANCE PROTOCOLS FOR HIGHER EDUCATION PROVIDERS LISTED IN TABLE A OF THE ACT
In the case of the Australian Catholic University, where a Protocol refers to enabling legislation, it is taken to mean its constitution and/or where applicable, the Corporations Act.
7.5.1 Protocol 1: the higher education provider must have its objectives and/or functions specified in its enabling legislation.
7.5.5 Protocol 2: the higher education provider’s governing body must adopt a statement of its primary responsibilities, which must include:
(a) appointing the vice-chancellor as the chief executive officer of the higher education provider, and monitoring his/her performance;
(b) approving the mission and strategic direction of the higher education provider, as well as the annual budget and business plan;
(c) overseeing and reviewing the management of the higher education provider and its performance;
(d) establishing policy and procedural principles, consistent with legal requirements and community expectations;
(e) approving and monitoring systems of control and accountability, including general overview of any controlled entities. A controlled entity is one that satisfies the test of control in s.50AA of the Corporations Act;
(f) overseeing and monitoring the assessment and management of risk across the higher education provider, including commercial undertakings;
(g) overseeing and monitoring the academic activities of the higher education provider;
(h) approving significant commercial activities of the higher education provider.
7.5.10 The higher education provider’s governing body, while retaining its ultimate governance responsibilities, may have an appropriate system of delegations to ensure the effective discharge of these responsibilities.
7.5.15 Protocol 3: the higher education provider must have the duties of the members of the governing body and sanctions for the breach of these duties specified in its enabling legislation. Other than the Chancellor, the Vice-Chancellor and the Presiding Member of the Academic Board (s) each member must be appointed or elected ad personam. All members of the governing body must be responsible and accountable to the governing body. When exercising the functions of a member of the governing body, a member of the governing body must always act in the best interests of the higher education provider.
7.5.20 Duties of members must include the requirements to:
(a) act always in the best interests of the higher education provider as a whole, with this obligation to be observed in priority to any duty a member may owe to those electing or appointing him or her;
(b) act in good faith, honestly and for a proper purpose;
(c) exercise appropriate care and diligence;
(d) not improperly use their position to gain an advantage for themselves or someone else; and
(e) disclose and avoid conflicts of interest (with appropriate procedures for that purpose similar to those for public companies).
7.5.25 There should be safeguards, exemptions and protections for members of a higher education provider’s governing body for matters or things done or omitted in good faith in pursuance of the relevant legislation. Without limitation, this should include such safeguards, exemptions and protections as are the equivalent of those that would be available were the member a director under the Corporations Act. The higher education provider (with the exception of those subject to the Corporations Act) must have a requirement that the governing body has the power (by a two-thirds majority) to remove any member of the governing body from office if the member breaches the duties specified above included in its enabling legislation. A member must automatically vacate the office if he or she is, or becomes, disqualified from acting as a Director of a company or managing corporations under Part 2D.6 of the Corporations Act.
7.5.30 Protocol 4: each governing body must make available a programme of induction and professional development for members to build the expertise of the governing body and to ensure that all members are aware of the nature of their duties and responsibilities. At regular intervals the governing body must assess both its performance and its conformance with these Protocols and identify needed skills and expertise for the future.
7.5.35 Protocol 5: the size of the governing body must not exceed 22 members. There must be at least two members having financial expertise (as demonstrated by relevant qualifications and financial management experience at a senior level in the public or private sector) and at least one member with commercial expertise (as demonstrated by relevant experience at a senior level in the public or private sector). Where the size of the governing body is limited to less than 10 members, one member with financial expertise and one with commercial expertise would be considered as meeting the requirements. There must be a majority of external independent members who are neither enrolled as a student nor employed by the higher education provider. There must not be current members of any State or Commonwealth parliament or legislative assembly other than where specifically selected by the governing body itself.
7.5.40 Protocol 6: the higher education provider must adopt systematic procedures for the nomination of prospective members of the governing body for those categories of members that are not elected. The responsibility for proposing such nominations for the governing body may be delegated to a nominations committee of the governing body that the Chancellor would ordinarily chair.
7.5.45 Members so appointed must be selected on the basis of their ability to contribute to the effective working of the governing body by having needed skills, knowledge and experience, an appreciation of the values of a higher education provider and its core activities of teaching and research, its independence and academic freedom and the capacity to appreciate what the higher education provider’s external community needs from that higher education provider.
7.5.50 To provide for the introduction of new members consistent with maintaining continuity and experience, members’ terms must generally overlap and governing bodies must establish the maximum period to be served. This should not generally exceed 12 years unless otherwise specifically agreed by the majority of the governing body.
7.5.55 Protocol 7: the higher education provider is to codify its internal grievance procedures and publish them with information about the procedure for submitting complaints to the relevant ombudsman or the equivalent relevant agency.
7.5.60 Protocol 8: the annual report of the higher education provider must be used for reporting on high level outcomes.
7.5.65 Protocol 9: the annual report of the higher education provider must include a report on risk management within the organisation.
7.5.70 Protocol 10: the governing body is required to oversee controlled entities by taking reasonable steps to bring about the following:
(a) ensuring that the entity’s board possesses the skills, knowledge and experience necessary to provide proper stewardship and control of the entity;
(b) appointing some directors to the board of the entity who are not members of the governing body or officers or students of the higher education provider, where possible;
(c) ensuring that the board adopts and regularly evaluates a written statement of its own governance principles;
(d) ensuring that the board documents a clear corporate and business strategy which reports on and updates annually the entity’s long-term objectives and includes an annual business plan containing achievable and measurable performance targets and milestones; and
(e) establishing and documenting clear expectations of reporting to the governing body, such as a draft business plan for consideration and approval before the commencement of each financial year and at least quarterly reports against the business plan.
7.5.75 Protocol 11: A higher education provider must assess the risk arising from its part ownership of any entity (including an associated company as defined in the Accounting Standards issued by the Australian Accounting Standards Board), partnership and joint venture. The governing body of the provider must, where appropriate in light of the risk assessment, use its best endeavours to obtain an auditor’s report (including audit certification and management letter) of the entity by a State, Territory or Commonwealth Auditor-General or by an external auditor.
7.10 NATIONAL GOVERNANCE PROTOCOLS FOR HIGHER EDUCATION PROVIDERS NOT LISTED IN TABLE A OF THE ACT
7.10.1 Protocol 1: the higher education provider must have its objectives specified in a constitution or such other document that establishes the higher education provider as a legal entity.
7.10.5 Protocol 2: the governing body of the higher education provider must adopt a statement of its primary responsibilities, which must include:
(a) appointing the chief executive officer of the higher education provider and monitoring his/her performance;
(b) appointing, where necessary, the secretary or public officer of the higher education provider;
(c) ensuring that the processes of the governing body are carried out in accordance with the constitution of the governing body;
(d) approving the mission and strategic direction of the higher education provider, as well as the annual budget and business plan;
(e) appointing an external auditor;
(f) appointing, where necessary, an audit committee that consists of at least three independent members (excluding the chair) of the governing body;
(g) establishing policy and procedural principles consistent with legal requirements and community expectations;
(h) approving and monitoring systems of control and accountability, including general overview of any controlled entities. A controlled entity is one that satisfies the test of control in s.50AA of the Corporations Act;
(i) overseeing and reviewing the management of the higher education provider and its performance as a higher education provider;
(j) overseeing and monitoring the assessment and management of risk across the higher education provider, including commercial undertakings;
(k) overseeing and monitoring academic activities of the higher education provider; and
(l) approving significant commercial activities of the higher education provider.
7.10.10 The higher education provider’s governing body, while retaining its ultimate governance responsibilities, may have an appropriate system of delegations to ensure the effective discharge of these responsibilities.
7.10.15 Protocol 3: the higher education provider must have the duties of the members of the governing body and sanctions for the breach of these duties specified in its constitution or other such document of the higher education provider. Other than the Chair of the Governing Body, Chief Executive Officer and the Presiding Member of the Academic Board (or the equivalent officer) each member must be appointed or elected ad personam. All members of the governing body must be responsible and accountable to the governing body. When exercising the functions of a member of the governing body, a member of the governing body must always act in the best interests of the higher education provider.
7.10.20 Duties of members must include the requirements to:
(a) act always in the best interests of the higher education provider as a whole, with this obligation to be observed in priority to any duty a member may owe to those electing or appointing him or her;
(b) act in good faith, honestly and for a proper purpose;
(c) exercise appropriate care and diligence;
(d) not improperly use their position to gain an advantage for themselves or someone else; and
(e) disclose and avoid conflicts of interest (with appropriate procedures for that purpose similar to those for public companies).
7.10.25 There should be safeguards, exemptions and protections for members of a higher education provider’s governing body for matters or things done or omitted in good faith. Without limitation, this should include such safeguards, exemptions and protections as are the equivalent of those that would be available were the member a director under the Corporations Act. The higher education provider (with the exception of those subject to the Corporations Act) must have a requirement that the governing body has the power to remove any member of the governing body from office if the member breaches the duties specified above included in its constitution or other such document of the higher education provider. A member must automatically vacate the office if he or she is, or becomes, disqualified from acting as a Director of a company or managing corporations under Part 2D.6 of the Corporations Act.
7.10.30 Protocol 4: each governing body must make available a programme of induction and professional development for members to build the expertise of the governing body and to ensure that all members are aware of the nature of their duties and responsibilities. At regular intervals the governing body must assess both its performance and its conformance with these Protocols and identify needed skills and expertise for the future.
7.10.35 Protocol 5: the size of governing body must not exceed 22 members. There must be at least two members having financial expertise (as demonstrated by relevant qualifications and financial management experience at a senior level in the public or private sector) and at least one member with commercial expertise (as demonstrated by relevant experience at a senior level in the public or private sector). Where the size of the governing body is limited to less than 10 members, one member with financial expertise and one with commercial expertise would be considered as meeting the requirements. A majority of the members must be external independent members who are neither enrolled as a student nor employed by the higher education provider. There must not be current members of any State or Commonwealth parliament or legislative assembly other than where specifically selected by the governing body itself.
7.10.40 Protocol 6: the higher education provider must adopt systematic procedures for the nomination of prospective members of the governing body for those categories of members that are not elected.
7.10.45 Protocol 7: the higher education provider is to codify its internal grievance procedures and publish them with information about the procedure for submitting complaints to the relevant ombudsman or the equivalent relevant agency.
7.10.50 Protocol 8: the annual report of the higher education provider must be used for reporting on high level outcomes required by the Commonwealth.
7.10.55 Protocol 9: the annual report of the higher education provider must include a report on risk management within the organisation.
7.10.60 Protocol 10: the governing body is required to oversee controlled entities by taking reasonable steps to bring about the following:
(a) ensuring that the entity’s board possesses the skills, knowledge and experience necessary to provide proper stewardship and control of the entity;
(b) appointing some directors to the board of the entity who are not members of the governing body or officers or students of the higher education provider, where possible;
(c) ensuring that the board regularly adopts and evaluates a written statement of its own governance principles;
(d) ensuring that the board documents a clear corporate and business strategy which reports and updates annually the entity’s long-term objectives and includes an annual business plan containing achievable and measurable performance targets and milestones; and
(e) establishing and documenting clear expectations of reporting to the governing body, such as a draft business plan for consideration and approval before the commencement of each financial year and at least quarterly reports against the business plan.
7.10.65 Protocol 11: the higher education provider and its associated entities shall be audited by an external auditor and the auditor’s report (including audit certification and management letter) provided to the higher education provider’s governing body or the higher education provider’s audit committee.
7.15 DATE TO MEET THESE REQUIREMENTS (SECTION 33-15)
7.15.1 Dates to meet the National Governance Protocols and workplace relations requirements for a higher education provider to receive an increase in its basic grant amount for a year under the Commonwealth Grant Scheme are:
Grant year
Funding Increases
Dates for meeting the requirements
2005
2.5%
31 August 2004
2006
5.0%
31 August 2005
2007
7.5%
31 August 2006
CHAPTER 8 ADJUSTMENTS
8.1 PURPOSE
8.1.1 The purpose of this chapter is to specify the circumstances under which an eligible higher education provider’s basic grant amount for a year is to be adjusted, and specify in relation to each of the adjustments whether the adjustment is an increase or a reduction in the basic grant amount and the amount of the adjustment or how it is to be worked out under section 33-20 of the Act.
8.5 ADJUSTMENTS TO BASIC GRANT AMOUNT (SECTION 33-20)
8.5.1 The adjustments set out in section 33-25 of the Act apply to a higher education provider’s basic grant amount with the exception of non-Table A higher education providers. The following adjustments are to apply to non-Table A higher education providers that provide Commonwealth supported places in national priority areas.
8.5.5 If the number of Commonwealth-supported places that were provided by a non-Table A provider in the preceding year for each national priority exceeds the number of allocated places in that national priority area, there will be no adjustment to the basic grant amount.
8.5.10 If the number of Commonwealth-supported places that were provided by a non-Table A provider in the preceding year for each national priority is fewer than the number of allocated places in that national priority area, there will be a reduction to the basic grant amount.
8.5.15 The reduction specified in paragraph 8.5.10 above will be an amount equal to the difference between the basic grant amount for the preceding year and the grant amount payable for the number of Commonwealth-supported places provided for each agreed national priority in the preceding year.
8.5.20 The adjustment is worked out in the following way.
The adjustment amount EQUALS the grant payable for the number of places allocated in the preceding year for each agreed national priority LESS the grant payable for the number of places provided in the preceding year for each agreed national priority.
8.5.25 The provider’s basic grant amount for the grant year will be reduced by this amount.
CHAPTER 9 DETERMINING THE FUNDING CLUSTERS
9.1 PURPOSE
9.1.1 The purpose of this chapter is to specify how to determine the funding clusters in which units of study are included and the particular funding cluster in which a particular unit of study is included under section 33-35 of the Act.
9.5 DETERMINING THE FUNDING CLUSTERS (SECTION 33-35)
9.5.1 Funding clusters in which units of study are included are determined in the following way. Clusters are defined by the field of education (FOE) under the Australian Bureau of Statistics (ABS) Australian Standard Classification of Education (ASCED) as set out below. Units offered by higher education providers will be classified into funding clusters according to these fields of education.
Funding Cluster
Unit Description
FOE Code
Funding Cluster 1
Law
Law
0909
Funding Cluster 2
Accounting, Administration,
Accounting
0801
Economics, Commerce
Business and Management
0803
Sales and Marketing
0805
Tourism
0807
Office Studies
0809
Banking, Finance and Related Fields
0811
Other Management and Commerce
0899
Economics and Econometrics
0919
Food and Hospitality
1101
Personal Services
1103
General Education Programmes
1201
Other Mixed Field Programmes
1299
Funding Cluster 3
Humanities
History
090305
Archaeology
090307
Indigenous Studies
090311
Justice and Law Enforcement
0911
Language and Literature
091500
English Language
091501
Linguistics
091521
Literature
091523
Language and Literature not elsewhere classified
091599
Philosophy and Religious Studies
0917
Funding Cluster 4
Mathematics, Statistics
Mathematical Sciences
0101
Funding Cluster 5
Behavioural Science, Social
Human Movement
069903
Studies
Political Science and PolicyStudies
0901
Studies in Human Society
090300
Sociology
090301
Anthropology
090303
Human Geography
090309
Gender Specific Studies
090313
Studies in Human Society not elsewhere classified
090399
Human Welfare Studies and Services
090500
Social Work
090501
Children’s Services
090503
Youth Work
090505
Care for the Aged
090507
Care for the Disabled
090509
Residential Client Care
090511
Counselling
090513
Welfare Studies
090515
Human Welfare Studies and Services not elsewhere classified
090599
Behavioural Science
0907
Librarianship, Information Management and Curatorial Studies
0913
Sport and Recreation
0921
Other Society and Culture
0999
Funding Cluster 6
Computing, Built Environment,
Computer Science
0201
Health
Information Systems
0203
Other Information Technology
0299
Architecture and Urban Environment
0401
Building
0403
Pharmacy
0605
Optical Science
0609
Public Health
0613
Radiography
0615
Rehabilitation Therapies
0617
Complementary Therapies
0619
Other Health
069900
Nutrition and Dietetics
069901
Paramedical Studies
069905
Funding Cluster 6 (continued)
First Aid
069907
Computing, Built Environment, Health
Health not elsewhere classified
069999
Funding Cluster 7
Foreign Languages, Visual and
Northern European Languages
091503
Performing Arts
Southern European Languages
091505
Eastern European Languages
091507
Southwest Asian and North African Languages
091509
Southern Asian Languages
091511
Southeast Asian Languages
091513
Eastern Asian Languages
091515
Australian Indigenous Languages
091517
Translating and Interpreting
091519
Performing Arts
1001
Visual Arts and Crafts
1003
Graphic and Design Studies
1005
Communication and Media Studies
1007
Other Creative Arts
1099
Funding Cluster 8
Engineering, Science, Surveying
Physics and Astronomy
0103
Chemical Sciences
0105
Earth Sciences
0107
Biological Sciences
0109
Other Natural and Physical Sciences
019900
Forensic Science
019903
Food Science and Biotechnology
019905
Pharmacology
019907
Laboratory Technology
019909
Natural and Physical Sciences not elsewhere classified
019999
Manufacturing Engineering and Technology
0301
Process and Resources Engineering
0303
Automotive Engineering and Technology
0305
Mechanical and Industrial Engineering and Technology
0307
Civil Engineering
0309
Geomatic Engineering
0311
Electrical and Electronic Engineering and Technology
0313
Aerospace Engineering and Technology
0315
Funding Cluster 8 (continued)
Engineering, Science, Surveying
Maritime Engineering and Technology
0317
Other Engineering and Related Technologies
0399
Funding Cluster 9
Dentistry, Medicine, Veterinary
Medical Science
019901
Science
Medical Studies
060100
General Medicine
060101
Surgery
060103
Psychiatry
060105
Obstetrics and Gynaecology
060107
Paediatrics
060109
Anaesthesiology
060111
Radiology
060115
Internal Medicine
060117
General Practice
060119
Medical Studies not elsewhere classified
060199
Dental Studies
0607
Veterinary Studies
0611
Funding Cluster 10
Agriculture
Agriculture
0501
Horticulture and Viticulture
0503
Forestry Sciences
0505
Fisheries Sciences
0507
Environmental Studies
0509
Other Agriculture,
0599
Environmental and Related
Studies
Pathology
060113
National Priority Funding Clusters
Cluster 11 - Education
Teacher Education
0701
Curriculum and Education Studies
0703
Other Education
0799
Cluster 12 - Nursing
Nursing
0603
CHAPTER 10 ADVANCES FOR CERTAIN PURPOSES
10.1 PURPOSE
10.1.1 The purpose of this chapter is to specify how advances in relation to expenditure of a higher education provider for certain purposes are to be determined and the reductions in the amount of grant payable in the following three years if the Minister determines that an advance is payable under section 33-40 of the Act.
10.5 ADVANCES FOR CERTAIN PURPOSES (section 33-40)
10.5.1 The Minister may determine advances of the grant to eligible higher education providers for the following purposes:
(a) to assist higher education providers with the cash-flow implications of restructuring;
(b) to implement adjustment arising from the specific effects on grants of Commonwealth policy change;
(c) to rationalise staffing levels, courses and infrastructure both within and between higher education providers;
(d) to help secure genuine productivity improvements in the area of workplace reform;
(e) to implement explicit decisions to restructure the educational profile of a higher education provider; and
(f) to achieve such other purposes as the Minister may determine.
10.10 AMOUNTS
10.10.1The total amount that the Minister may advance in a calendar year shall not exceed $25 million.
10.15 CONDITIONS ON ADVANCES
10.15.1An advance may be paid to a higher education provider on such conditions as the Minister determines, including, but not limited to provision of information regarding the purposes and use to which the advance has been applied.
10.20 REPAYMENT OF THE ADVANCE
10.20.1Reductions in the amount of the grant payable to a provider under section 33-1 of the Act will be determined by the Minister for the three years following the advance.
CHAPTER 11 FEES IN RESPECT OF OVERSEAS STUDENTS
11.1 PURPOSE
11.1.1 The purpose of this chapter is to detail the requirements with which higher education providers must comply in imposing fees for fee paying overseas students in accordance with section 19-102(3)(d) of the Act.
11.5 REQUIREMENTS
11.5.1 When determining a fee for overseas students, higher education providers must meet the following requirements:
(a) Higher education providers must in all cases charge as a minimum, fees sufficient to recover the full cost of providing the course to an overseas student. Without limiting the meaning of full cost, it includes:
(i) full operating costs, including equipment costs. Account should be taken not only of directly associated staff costs and the like but also all overheads (e.g. utilities, rent, marketing costs) and common services costs (e.g. libraries, student counsellors).
(ii) full capital costs. For fee calculation purposes, the current average cost per place of providing capital facilities for the course in question should be determined by the higher education provider.
(iii) A capital component of the fee will not need to be taken into account where the necessary capital facilities are provided by a third party.
(b) Fees must be no less than those shown for the relevant category of course in the schedule of minimum indicative course fees, which forms part of these guidelines, except where:
(i) a course is provided wholly off-shore and students will not at any stage enter Australia for study;
(ii) approval has been given by Department of Education, Science and Training to charge less than the minimum indicative fee for a course.
In these circumstances no minimum indicative fee will apply. However the provider must be able to demonstrate that the fee proposed will recover at least the full cost of providing the course.
(c) For the purposes of paragraph 11.5.1 (b), the minimum indicative course fee for the relevant category of course is:
(i) if paragraph 11.5.1 (a) (iii) applies, the amount in the column headed Total without capital component; or
(ii) in all other circumstances, the amount in the column headed Total with capital component.