Our Business On the Move Creating Opportunities out of Challenges

Our Business program On the Move – Understanding the changing VET environment Opportunity Knocks – Part 1 - Building a successful business relationship Part 2 - Evaluating a business opportunity

Riverina Institute >Why are we here? >Our ‘Profile’ – Facts and Figures >External Environment >Whole of Business >Funding Sources >How we are performing? >Where to from here?

Riverina Institute Snapshot RI Strategic Priorities Goals_07-11.pdf RI Business Plans RI Targets

Quote from Rosemary “Over 50% of our enrolments now come from contestable funding sources. These customers often want customised training that meets their own particular business needs. If Riverina Institute can’t provide the services they want, then there is no shortage other public and private Registered Training Organisations that are more than willing to take that business away from us”

Discussion >How is the external environment of VET changing?

What affects RI? >COAG agenda >Commonwealth funding agreements >Industry requirements and response >Market design focus >Review of Higher Education >VET in schools >Other State directions

Market design States rewarded for adopting: >National regulation of RTOs >Choice in training provider, products, and service >Individuals funded, not the institutions >Contestability of all funding >Competitive Neutrality >Nationally Competitive Market

VET in Schools >Trade Training Centres in Schools program ($2.5 billion over 10 years) >$500,00 - $1.5 m per school >Funding for upgrades, refurbishments, new facilities >For training in skills shortage areas to Cert III >Application requires coordination with TAFE and other providers to ensure no duplication of facilities in the area

Whole of Business >What does this mean to you?

Whole of Business Approach It’s about … >knowing the needs of our customers >knowing where we have a competitive advantage >tailoring our programs for different customer needs >linking and integrating services (recognition, job placement, counselling, library, learner & disability support) with training and skills development >diversifying our funding sources to ensure sustainability >competing in the marketplace.

Contestable Funding Funded places that we have to compete for include: >Productivity Places Program (PPP) >Traineeships >Some Apprenticeships >AMEP and LLNP >Pre Vocational programs >Strategic Skills Program (SSP) A full list is maintained at:

Productivity Places Program >Federal Government initiative >450,000 places over 4 years >20,000 places from 1 April for job seekers >15,200 at Cert II and 4,800 at Cert III >A significant proportion to be referred from job network >Skill shortage areas

Traineeships Discussion What % of NSW Traineeships are with TAFE? Who are our major competitors?

Funding Sources Increase Of 333% since 1996 Increase Of 333% since 1996

Funding Sources 62% State Recurrent Funding approx $54.2M 38% External Funding approx $32.7M

What do external funds pay for? >38% external funds represent…

Our Funding Sources – 38% External

Where the money was allocated – 2008/2009

ASH Trends (Actuals) – Core V External

How does it all come together? The Riverina Funding Model

The Total Funding Picture Infrastructure Maintenance & Utilities $1.299M Salaries and Consumables $48.172M Salaries and Consumables $48.172M Reinvestment of Margin in Core & Initiatives $4.026M Centrally Managed Funds $3.404M External Programs $24.787M Business Development Costs $1.7M Core Capital/Infrastructure/Equipment Funds $1.702M CMFExternal Equity open bal. $1.886M (Centrally set) Equity open bal. $1.886M (Centrally set) Equity closing bal $1.04M External Margin $4.026M $.846 Last year loss

Discussion To respond to the new environment and ensure RI’s sustainability What do I need to change about myself, my section and the Institute? …… what's in it for me?

Key Messages >Know your competitors >Extend partnerships with enterprises to attract business – national and local >Build partnerships with universities and schools >Provide a comprehensive service for employers >Promote existing support services; libraries, counselling >Upgrade and expand information to clients >Take new funding opportunities for skills development

What’s next? >Opportunity Knocks Part 1 (2 hours) Networking >Opportunity Knocks Part 2 (2 Hours) Developing a Business Case

Resources Resources from this training are available at: