Australian Institute 
for Teaching and 
School Leadership 

Australian Institute for Teaching and School Leadership
Section 1: Agency overview and resources	187
1.1	Strategic direction	187
1.2	Agency resource statement	188
1.3	Budget measures	188
Section 2: Outcomes and planned performance	189
2.1	Outcomes and performance information	189
Section 3: Explanatory tables and budgeted financial statements	193
3.1	Explanatory tables	193
3.2	Budgeted Financial Statements	193

Australian Institute for Teaching and 
School Leadership Limited
Section 1: Agency overview and resources
1.1	Strategic direction
The Australian Institute for Teaching and School Leadership (AITSL) came into being on 1 January 2010 as a result of the review of Teaching Australia announced in the 2008‑09 Budget and decisions made in 2009 by the Ministerial Council for Education, Early Childhood Development and Youth Affairs (MCEECDYA) (formerly the Ministerial Council for Employment, Training and Youth Affairs).
AITSL is a public company limited by guarantee under the Corporations Act 2001 and is subject to the Commonwealth Authorities and Companies Act 1997. The Minister for Education is the sole member of the company. It operates under its own constitution, with priorities set by MCEECDYA through the Letter of Expectation dated 14 December 2009. The Board of Directors has a membership nominated by jurisdictions, the Australian Government, the Catholic and independent school sectors, teacher unions, professional associations principals associations and the Deans of Education. 
AITSL’s primary purpose is to provide national leadership for the Commonwealth, state and territory governments in promoting excellence in the profession of teaching and school leadership.
AITSL has a significant role in delivering the reforms agreed to through the Council of Australian Governments (COAG) National Partnership on Improving Teacher Quality, which targets critical points in the teacher lifecycle to attract, train, place, develop and retain quality teachers and leaders in schools and classrooms. 
AITSL has responsibility for rigorous national professional standards and fostering and driving high quality professional development for teachers and school leaders by working collaboratively across jurisdictions and engaging with key professional bodies. Basing its work on the national professional standards for teaching, AITSL will guide reform in the areas of teacher registration, accreditation of pre-service teacher education, accreditation of teachers at the graduate, proficient, highly accomplished and lead teacher levels, and will deliver prestigious national awards for teachers and school leaders.

1.2	Agency resource statement
Table 1.1 shows the total resources from all origins. The table summarises how resources will be applied by outcome and by departmental classification.
Table 1.1: Australian Institute for Teaching and School Leadership resource statement for 2010‑11 as at Budget May 2010
 	 	Estimate  	 	Proposed	 	Total 	Actual	
		of prior 	+	at Budget	=	estimate	available	
		year amounts				 	appropriation	
		 available in				 		
Source		2010-11		2010-11		2010-11	2009-10	
 		$'000		$'000		$'000	$'000	
						 		
Opening balance/Reserves at bank		3,096		- 		3,096	- 	
						 		
REVENUE FROM GOVERNMENT						 		
Ordinary annual services¹						 		
Outcome 1		-		13,002		13,002	- 	
	 	 		 		 	 	
Total ordinary annual services  	 	- 		13,002		16,098	- 	

FUNDS FROM OTHER SOURCES						 		
Interest		- 		140		- 	- 	
Sale of goods and services		- 		650		- 	- 	
Other 		- 		15		- 	- 	
Total		- 		805		805	- 	
	 	 	 	 	 	 	 	
Total net resourcing 	 	- 	 	13,807	 	16,903	- 	
								
1 Appropriation Bill (No.1) 2010-11								
AITSL is not directly appropriated as it is a CAC Act body. Appropriations are made to the Department of Education, Employment and Workplace Relations which are then paid to AITSL and are considered 'departmental' for all purposes.	
All figures are GST exclusive	

1.3	  Budget measures
AITSL does not have any new measures since the 2009‑10 Budget. For this reason Table 1.2 is not presented.

Section 2: Outcomes and planned performance
2.1	Outcomes and performance information
Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to government outcomes over the Budget and forward years.
Each outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of the Australian Institute for Teaching and School Leadership in achieving government outcomes.
Outcome 1: Enhance the quality of teaching and school leadership through developing standards, recognising teaching excellence, providing professional development opportunities and supporting the teaching profession.
Outcome 1 Strategy
AITSL will work with jurisdictions, education authorities, teacher unions and professional associations, principals and teacher educators to strengthen the teaching profession. It will undertake a range of targeted activities, complementing the work of other education agencies, to enhance the quality of teaching and school leadership and to support the professionalism of teachers and school leaders. 
Through the strategies adopted to achieve Outcome 1, AITSL will contribute to the objectives of the COAG National Partnership on Improving Teacher Quality leading to improved educational outcomes. 
Key strategies in 2010–11 will be to:
•	Finalise national professional standards for teachers, and develop national professional standards for school leaders.
•	Use the standards as the basis for new, prestigious national awards for teachers and school leaders.
•	Develop standards for professional learning activities, including criteria for Flagship, National and Affiliated programs.
•	Develop and offer targeted, leading edge professional learning activities that build school leadership capacity and support teachers in achieving the lead teacher level of the national professional standards, with emphasis on delivering the new national curriculum.
•	
Undertake and engage with leading national and international research and innovative developments to support its work through a strong evidence base.
•	Undertake the role of assessing authority under the Migration Regulations 1994 for the purposes of skilled migration to Australia as a pre-primary, primary or secondary school teacher.
•	Through national teacher professional associations, strengthen the capacity of the teaching profession to influence and act in partnership with other education stakeholders to provide the best education for all school students.
•	Effectively implement and maintain high standards of corporate governance.
AITSL’s target group is the 250,000 teachers and school leaders across all educational jurisdictions and sectors. The AITSL’s strategic approach is to work collaboratively with jurisdictions and other key stakeholders including the profession itself and to complement the significant investment of school authorities in quality teaching and school leadership through targeted national activities.
Table 2.1: Budgeted Expenses and Resources for Outcome 1
Outcome 1: Enhance the quality of teaching and school leadership through developing standards, recognising teaching excellence, providing professional development opportunities and supporting the teaching profession.	2009-10	2010-11	
	Estimated	Estimated	
	actual	expenses	
	expenses	 	
	$'000	$'000	
Program 1.1: Assistance for quality teaching and learning		 	
Revenue from Government	-	- 	
Revenues from other independent sources 	7,731	13,807	
Total for Program 1.1	7,731	13,807	
Outcome 1 Totals by resource type		 	
Revenue from Government	-	- 	
Revenues from other independent sources 	7,731	13,807	
Total expenses for Outcome 1	7,731	13,807	
		 	
 	 2009-10 	 2010-11 	
Average Staffing Level (number)	                  20 	                 32 	
Note: Departmental Appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.

Contributions to Outcome 1
Program 1.1 Assistance for quality teaching and learning	

Program 1.1 objective
•	Establish national standards for teachers at four levels and implement processes for assessment and certification of teachers at highly accomplished and lead teacher levels.
•	Establish and promote national standards for school leaders.
•	Establish national standards for pre-service teacher education programs and processes for accreditation of those programs.
•	Establish a national professional learning system for teachers and school leaders including standards, flagship programs and processes for accrediting professional learning programs.
•	Establish and administer annual national awards for teachers and school leaders.
•	Fulfil the role of assessing authority under the Migration Regulations 1994 for the purposes of skilled migration to Australia as a pre-primary, primary or secondary school teacher.
•	Undertake and engage with national and international research and innovative developments in best practice.
•	Implement measures to ensure high standards of corporate governance.
•	Establish operations of AITSL in Queensland and Victoria.	

Program 1.1 expenses	

	2009-10	2010-11	2011-12	2012-13	2013-14	
	Revised	Budget	Forward	Forward	Forward	
('000)	budget		year 1	year 2	year 3	
Annual departmental expenses:		 				
Departmental item	7,731	13,807	12,840	12,854	-	
Total program expenses 	7,731	13,807	12,840	12,854	 -	

Program 1.1 Deliverables	
Deliverable	2010–11 Target	
Establishment of national standards for teachers at four levels and implementation of processes for accreditation of teachers at highly accomplished and lead teacher levels.	National professional standards for teachers established, validated and endorsed by MCEECDYA.	
Establishment and promotion of national standards for school leaders.	Standards established and in use as a basis for professional learning.	
Establishment of national standards for pre-service teacher education programs and processes for accreditation of those programs.	National program standards and accreditation processes agreed and pilot accreditation activities commenced.	
Establishment of a national professional learning system for teachers and school leaders including standards, flagship programs and processes for accrediting professional learning programs.	National system, standards and accreditation processes established and endorsed and flagship programs developed. 	
Establishment and administration of annual national awards for teachers and school leaders.	New prestigious annual awards initiated.	
Fulfilling the role of assessing authority under the Migration Regulations 1994 for the purposes of skilled migration to Australia as a pre-primary, primary or secondary school teacher.	Processing of applications undertaken to the satisfaction of relevant authorities.	
Undertaking and engaging with national and international research and innovative developments in best practice.	Research base for AITSL’s work enhanced by research undertaken in conjunction with national and international agencies and an international expert panel.	
Implementation of measures to ensure high standards of corporate governance.	Audit, risk management and financial advisory structures established and operating with transparency and rigour.	
Establishment of operations of AITSL in Queensland and Victoria.	Operations in Queensland and Victoria established and operating effectively, efficiently and cooperatively.	

Program 1.1 Key performance indicators
AITSL provides national leadership for the Commonwealth, state and territory governments in promoting excellence in the profession of teaching and school leadership.	

Section 3: Explanatory tables and budgeted financial statements
Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the budget year 2010‑11. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.
3.1	Explanatory tables
3.1.1	Movement of administered funds between years
AITSL has no administered funds. For this reason Table 3.1.1 is not presented.
3.1.2    Special Accounts 
AITSL has no special accounts. For this reason Table 3.1.2 is not presented.
3.1.3    Australian Government Indigenous Expenditure 
The 2010‑11 Australian Indigenous Statement is not applicable because AITSL has no Indigenous specific expenses. For this reason Table 3.1.3 is not presented.
3.2	Budgeted financial statements
3.2.1	Differences in agency resourcing and financial statements
There are no differences in agency resourcing and the financial statements.
3.2.2	Analysis of budgeted financial statements
In April 2010 MCEECDYA agreed to a total budget of $41.8 million for the period 2009‑10 to 2012‑13. Over the same period, income from Overseas Skills Assessment is estimated to be $2.3 million.
AITSL is budgeting for a break-even result in 2010‑11 and the two forward years. 
The net asset position of $3.3 million in 2010‑11 is expected to remain the same for the two forward years.
Total assets for 2010‑11 are estimated to be $3.5 million comprising $3.0 million of financial assets and $0.5 million in non-financial assets.
Total liabilities for 2010‑11 are estimated to be $0.2 million of which $0.1 million being accrued employee entitlements and $0.1 million towards supplier payables.

3.2.3	Budgeted financial statements tables
Table 3.2.1: Comprehensive income statement (showing Net Cost of Services)
(for the period ended 30 June
 	Estimated	Budget	Forward	Forward	Forward	
	actual	estimate	estimate	estimate	estimate	
	2009-10	2010-11	2011-12	2012-13	2013-14	
	$'000	$'000	$'000	$'000	$'000	
EXPENSES		 				
Employee benefits	2,695 	4,317 	4,650 	4,720 		
Supplier expenses	 4,868 	9,370 	8,064 	8,003 		
Depreciation and amortisation	128 	120*	126*	131*		
Finance costs	- 	-*	-*	-*		
Write-down and impairment of assets	40 	  - 	- 	  - 		
Losses from asset sales	- 	- 	- 	  - 		
Total expenses	7,731 	     13,807 	     12,840 	     12,854 		
		 				
LESS: 		 				
OWN-SOURCE INCOME		 				
Revenue		 				
Sale of goods and rendering of services	540 	          650 	          675 	          685 		
Fees and fines	  - 	- 	- 	  - 		
Interest	120 	140 	150 	155 		
Other	25 	15 	15 	15 		
Total revenue	685 	805 	840 	855 		
		 				
Gains		 				
Total gains	    - 	  - 	   - 	   - 		
Total own-source income	685 	805 	840 	855 		
		 				
Net cost of (contribution by)	 (7,046)	 (13,002)	 (12,000)	 (11,999)		
services	 	 	 	 		
Revenue from Government	  7,550 	13,002 	12,000 	11,999 		
		 				
Surplus (Deficit)	  504 	  - 	   - 	      - 		
		 				
Surplus (Deficit) attributable to the Australian Government	504 	- 	- 	  - 		
Prepared on Australian Accounting Standards basis.	

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
 	Estimated	Budget	Forward	Forward	Forward	
	actual	estimate	estimate	estimate	estimate	
	2009-10	2010-11	2011-12	2012-13	2013-14	
	$'000	$'000	$'000	$'000	$'000	
ASSETS		 				
Financial assets		 				
Cash and equivalents	3,096	2,962	3,100	3,244		
Trade and other receivables	-	15	30	45		
Total financial assets	3,096	2,977	3,130	3,289	 	
		 				
Non-financial assets		 				
Infrastructure, plant and equipment	60	167	148	118		
Intangibles	119	187	128	64		
Other	72	116	93	71		
Total non-financial assets	251	470	369	253	 	
Total assets	3,347	3,447	3,499	3,542	 	
		 				
LIABILITIES		 				
Payables		 				
Suppliers	50	65	77	95		
Total payables	50	65	77	95	 	

Provisions		 				
Employee provisions	25	110	150	175		
Total provisions	25	110	150	175	 	
		 				
Total liabilities	75	175	227	270	 	
		 				
Net assets	3,272	3,272	3,272	3,272	 	
EQUITY*		 				
Parent entity interest		 				
Reserves	4	4	4	4		
Retained surplus						
(accumulated deficit)	 3,268	3,268	3,268	3,268		
Total parent entity interest	3,272	 3,272	3,272	3,272	 	
		 				
Total equity	3,272	3,272	3,272	3,272	 	
		 				
Current assets	3,096	2,977	  3,130	3,289		
Non-current assets	251	470	369	253		
Current liabilities	75	175	227	270		
Non-current liabilities	-	-	-	-		
*     'Equity' is the residual interest in assets after deduction of liabilities.			
Prepared on Australian Accounting Standards basis.				

Table 3.2.3: Departmental statement of changes in equity — summary of movement (Budget year 2010‑11)
 	Retained	Asset	Other	Contributed	Total	
	earnings	revaluation	reserves	equity/	equity	
		reserve		capital		
	$'000	$'000	$'000	$'000	$'000	
Opening balance as at 1 July 2010						
Balance carried forward from						
previous period	3,268	4	              - 	               - 	3,272	
Opening balance	3,268	4	-	-	3,272	
						
Income and expense						
						
Surplus (deficit) for the period	- 	- 	- 	   - 	- 	
						
Total income and expenses						
recognised directly in equity	- 	- 	- 	   - 	- 	
Estimated closing balance	 	 	 	 	 	
as at 30 June 2011	3,268	4	-	-	3,272	
Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)
 	Estimated	Budget	Forward	Forward	Forward	
	actual	estimate	estimate	estimate	estimate	
	2009-10	2010-11	2011-12	2012-13	2013-14	
	$'000	$'000	$'000	$'000	$'000	
OPERATING ACTIVITIES		 				
Cash received		 				
Goods and services	540	650	675	685		
Interest	281	140	150	155		
Other 	7,721	13,002	12,000	11,999		
Total cash received	8,542	13,792	12,825	12,839	 	
		 				
Cash used		 				
Employees	2,777	4,192	4,567	4,651		
Suppliers	4,993	9,394	8,095	8,029		
Total cash used	7,770	13,586	12,662	12,680	 	
Net cash from (used by)					 	
operating activities	772	206	163	159	 	
		 				
INVESTING ACTIVITIES		 				
 Cash received		 				
Proceeds from sales of property,	-	- 	- 	- 		
plant and equipment		 	 	 	 	
Total cash received	-	- 	- 	- 	 	
		 				
Cash used		 				
Purchase of infrastructure, plant 	-	214	20	15		
and equipment		 				
Purchase of Intangibles	- 	126	5	- 		
Total cash used	-	340	25	15	 	
Net cash from (used by)  					 	
investing activities	-	(340)	(25)	(15)	 	
Net increase (decrease)					 	
in cash held	772	(134)	138	144	 	
Cash and cash equivalents at the						
beginning of the reporting period	2,324	3,096	2,962	3,100		
Cash and cash equivalents at the 					 	
end of the reporting period	3,096	2,962	3,100	3,244	 	
Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget statement
AITSL does not have a departmental capital budget. For this reason Table 3.2.5 is not presented.
Table 3.2.6: Statement of Asset Movements (2010‑11)
 	Other Infrastructure,	Heritage	Intangibles	Total	
	plant and	and cultural			
	equipment	assets			
	$'000	$'000	$'000	$'000	
As at 1 July 2010					
Gross book value 	293	28	349	670	
Accumulated depreciation/amortisation 	 (190)	- 	 (229)	 (419)	
and impairment				 	
Opening net book balance	103	28	120	251	
					
CAPITAL ASSET ADDITIONS					
Estimated expenditure on					
new or replacement assets					
By purchase - donated funds	- 	- 	- 	- 	
By purchase - other	187	25	126	338	
By finance lease	- 	- 	- 	- 	
Assets received as gifts/donations	- 	- 	- 	- 	
From acquisition of entities or operations	- 	- 	- 	- 	
(including restructuring)	- 	- 	- 	- 	
Total additions	187	25	126	338	
Other movements	 	 	 		
Assets held for sale or in a disposal 	- 	- 	- 	- 	
group held for sale					
Depreciation/amortisation expense	 (58)	- 	 (62)	 (120)	
Disposals#	- 	- 	- 	- 	
Other	- 	- 	- 	- 	
					
As at 30 June 2011					
Gross book value	480	53	475	1,008	
Accumulated depreciation/amortisation	 (248)	- 	 (290)	 (538)	
and impairment				 	
Closing net book balance	232	53	185	470	
# Proceeds may be returned to the OPA
Prepared on Australian Accounting Standards basis.				

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)
AITSL has no income and expenses administered on behalf of government. For this reason Table 3.2.7 is not presented.
Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)
AITSL has no assets and liabilities administered on behalf of government. For this reason Table 3.2.8 is not presented.
Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June)
AITSL has no administered cash flows. For this reason Table 3.2.9 is not presented.
Table 3.2.10: Schedule of administered capital budget 
AITSL has no administered capital budget. For this reason Table 3.2.10 is not presented.
Table 3.2.11: Schedule of asset movements - administered 
AITSL has no administered assets. For this reason Table 3.2.11 is not presented.