4. People and relationships
4.1 Employee Provisions | 2020 | 2019 |
$’000 | $’000 | |
Leave - not more than 12 months | 1,519 | 1,051 |
Leave - more than 12 months | 1,204 | 1,069 |
Total employee provisions | 2,723 | 2,120 |
Employee Benefits
Liabilities for ‘short-term employee benefits and termination benefits expected within twelve months of the end of reporting period are measured at their nominal amounts. Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.
Leave
The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave entitlements are non-vesting and the average sick leave taken in future years by employees of ACARA is estimated to be less than the annual entitlement for sick leave. The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including ACARAs employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination. The liability for long service leave has been determined by reference to the Australian Government shorthand method. In applying this method, the accrued long service leave for each employee as at reporting date is probability weighted, based on the Australian Government probability profile. The amount obtained for each employee is then discounted, using the ten-year Treasury bond rate. The estimate of the present value of the liability reflects the attrition rates and pay increases through promotion and inflation.
Superannuation
Upon commencing of employment with ACARA, employees nominate an approved superannuation scheme of their choice. ACARA contributes a minimum of 10.5% of superannuable salaries on behalf of its employees. The liability for superannuation recognised as at 30 June 2020 represents outstanding contributions for the final month of the year.
4.2 Key Management Personnel Remuneration
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of ACARA, directly or indirectly, including any director (whether executive or otherwise). ACARA has determined the key management personnel to be the Directors, Chief Executive Officer and the Executive staff reporting to the Chief Executive Officer. Policies and procedures The framework for determining the remuneration of Key Management Personnel (KMP) is set out below:
Position | Instrument to set remuneration determination by ACARA |
ACARA Board Chair; Deputy Chair; Board Members | Remuneration Tribunal (Remuneration and Allowances for Holders of Part-time Public Office) Determination 2019. There were small increased determinations applicable to ACARA’s Board. |
ACARA CEO | Remuneration Tribunal (Remuneration and Allowances for Holders of Full-time Public Office) Determination 2019. There was small increased determination applicable to ACARA’s CEO as the full-time office holder. |
ACARA Executive | ACARA executives are appointed on independent contracts. ACARA has detailed position descriptions for all positions, incl. ACARA’s executive. These positions are evaluated using the Mercer CED job evaluation methodology, determining the appropriate classification before advertising. Evaluations reflect expertise, complexity, overall impact and the level of authority the position is required by ACARA. Executive appointments are further assisted by third party executive search agencies, assessing market competitiveness, within the approved range and budget restraints. The CEO signs off all remuneration offers for executive appointments. |
Highly paid ACARA employees | ACARA Enterprise Agreement 2017, Schedule A, Classification Levels and Salaries. ACARA has detailed position descriptions for all positions, incl. ACARA’s highly paid employees. These positions are evaluated using the Mercer CED job evaluation methodology, determining the appropriate classification before advertising. Evaluations reflect expertise, complexity, overall impact and the level of authority the position is required by ACARA. For our most senior appointments, ACARA will consider the merits of further assistance by third party executive search agencies, assessing market competitiveness, within the approved classification range and budget restraints. The CEO or the relevant executive signs off all remuneration offers for appointment. |
Key Management Personnel Remuneration Disclosure
During the reporting period ended 30 June 2020, ACARA had eleven executives or board members who meet the definition of key management personnel, and were remunerated. Their names and the length of term as KMP are summarized below:
Name | Position | Term as KMP |
David De Carvalho | CEO | Full year |
Peter Titmanis | General Manager, Assessment and Reporting | Full year |
Ann-Maree Ashburn | Director, Communications and Strategic Relations | Full year |
Wayne Evans | Director, Corporate Services | Part year - Term: 1st July 2019 to 27th October 2019 |
Thomas Begeng | Director, Corporate Services | Part year - Appointed 8 October 2019 |
Janet Davy | Director, Curriculum | Full year |
Edel David | Director, NAPLAN Online Project Management Office | Part year - Appointed 18th October 2019 |
Belinda Robinson | Board Chair | Full year |
Norm Hart | Deputy Chair | Full year |
Michael Hewitson | Board Member & Chair of Audit and Risk Committee | Full year |
Tony Luttrell | Board Member | Part year - Appointed 15th January 2020 |
Key management personnel remuneration is reported in the table below:
2020 | 2019 | |
$’000 | $’000 | |
Short-term employee benefits: | ||
Director fees / salary | 2,059 | 1,724 |
Total short-term employee benefits | 2,059 | 1,724 |
Post-employment benefits: | ||
Superannuation | 194 | 167 |
Total post-employment benefits | 194 | 167 |
Other long-term benefits: | ||
Long-service leave | 37 | -92 |
Total other long-term benefits | 37 | -92 |
Termination benefits | 0 | 209 |
Total senior executive remuneration expenses 1 | 2,290 | 2,008 |
Key management personnel remuneration expense for the reporting period
The total number of key management personnel that are included in the table on page 26 is 24 individuals (14 Board Members, 3 independent ARC members and 7 ACARA Executive staff) in 2019: 22 individuals (15 Board Members and 7 ACARA Executive staff).
1 The above key management personnel remuneration excludes remuneration and other benefits of the Education Minister. The directors of ACARA are appointed by the Minister for Education. The remuneration of the Minister of Education and other benefits are set by the Remuneration Tribunal and are not paid by ACARA.
In accordance with the PGPA Rule, the above information has been disaggregated as follows:
2020 | |
$’000 | |
Total Key management personnel remuneration expenses per above | 2,290 |
Addition of ARC payments | 8 |
Total Key management personnel remuneration expenses per below | 2,298 |
ACARA Key Management Personnel and ARC Remuneration | Short-term benefits | Post-employment benefits | Other long-term benefits | Termination Benefits | Total Annual Remuneration | |
Name | Position Title | Base Salary | Super-annuation | Long Service Leave | 2020 | |
$’000 | ||||||
Belinda Robinson | Chair, ACARA Board; Vice-President University Relations and Strategy, University of Canberra | 110,852 | 10,531 | 0 | 0 | 121,383 |
Norm Hart | Deputy Chair, ACARA Board; ACARA ARC Board Representative | 83,144 | 7,899 | 0 | 0 | 91,042 |
Allan Blagaich | Executive Director, School Curriculum and Standards Authority Western Australia | 0 | 0 | 0 | 0 | 0 |
Meg Brighton | Deputy Director-General, Health Systems, Policy and Research, ACT Health Directorate ACT | 0 | 0 | 0 | 0 | 0 |
Susan Cameron | Executive Director Learning Improvement Department of Education and Child Development SA | 0 | 0 | 0 | 0 | 0 |
Deb Efthymiades | Deputy Director-General, ACT Directorate of Education and Training | 0 | 0 | 0 | 0 | 0 |
Valerie Gould | Executive Director of the Association of Independent Schools, Western Australia | 12,694 | 0 | 0 | 0 | 12,694 |
Michael Hewitson AM | Mayor of Unley; ACARA ARC Chair | 16,197 | 1,433 | 0 | 0 | 17,630 |
David Howes | Deputy Secretary, Schools and Regional Services, Department of Education and Training, Victoria | 0 | 0 | 0 | 0 | 0 |
Peter Kelly | Deputy Director-General, Queensland Department of Education | 0 | 0 | 0 | 0 | 0 |
Sofia Kesidou | Executive Director, Education Standards, NSW Education Standards Authority | 0 | 0 | 0 | 0 | 0 |
Tony Luttrell | Director Strategic Data Management, Department of Education, Tasmania | 6,216 | 485 | 0 | 0 | 6,701 |
Neil McGoran | Director of Catholic Education South Australia | 2,603 | 0 | 0 | 0 | 2,603 |
Leanne Nixon | Deputy Chief Executive, Northern Territory Department of Education; ACARA ARC Member | 0 | 0 | 0 | 0 | 0 |
Lisa Barnes | ACARA ARC Deputy Chair | 4,036 | 0 | 0 | 0 | 4,036 |
Gil Smith | ACARA ARC Member (ceased Sept'19) | 1,009 | 0 | 0 | 0 | 1,009 |
Dennis Clark | ACARA ARC Member | 3,431 | 0 | 0 | 0 | 3,431 |
Edel David * | ACARA Director, NAPLAN Online Project Management Office | 178,187 | 14,540 | 4,136 | 0 | 196,864 |
Ann-Maree Ashburn | ACARA Director, Communications and Strategic Relations | 238,031 | 23,426 | 4,850 | 0 | 266,307 |
Thomas Begeng | ACARA Director, Corporate Services (commenced Oct'19) | 186,928 | 18,274 | 4,189 | 0 | 209,390 |
Wayne Evans * | ACARA Director, Corporate Services (ceased Nov'19) | 147,947 | 0 | 0 | 0 | 147,947 |
Janet Davy | ACARA Director, Curriculum | 316,274 | 31,202 | 6,212 | 0 | 353,687 |
Peter Titmanis | ACARA General Manager, Assessment and Reporting | 329,538 | 32,130 | 7,650 | 0 | 369,318 |
David deCarvalho | ACARA Chief Executive Officer | 430,918 | 53,809 | 9,692 | 0 | 494,419 |
Total annual Remuneration for ACARA KMP and ARC Remuneration | 2,068,005 | 193,729 | 36,729 | 0 | 2,298,463 | |
* Part year Employment
1. The above table does not include any Annual Leave and Long Service Leave paid out on termination, which are accrued in the year.
2. ACARA did not pay any bonuses or any short or long term, other benefits and allowances during the 2019-20 year.
3. Some of ACARA’s Board members do not receive remuneration for ACARA Board duty; in some cases this is due to the provisions of legislation, in other cases it is based on an individual decision regarding the effect of their employers’ policies
4.3. Related Party Disclosures
ACARA is an Australian Government controlled entity. Related parties to this entity are directors and key management personnel. Several directors of ACARA held directorships or senior roles with other companies or government agencies. All transactions between ACARA and entities with directors or key management personnel common to ACARA, are conducted using commercial and arm-length principles. Members are excluded from discussions on matters in which they may have a conflict of interest.
2020 | 2019 | |
$’000 | $’000 | |
Transactions with directors, key management personnel or their related entities | 235 | 49 |
Details of companies and government agencies which ACARA has engaged for services and with which ACARA Directors are associated.
2020 | 2019 | |
$’000 | $’000 | |
Western Australia School Curriculum and Standards Authority | -2 | 4 |
Association of Independent Schools, Western Australia | 12 | 0 |
NSW Education Standards Authority | 1 | 11 |
Australian Capital Territory Education Directorate | -2 | 2 |
Victorian Curriculum and Assessment Authority | 216 | 12 |
Northern Territory Department of Education | 0 | 1 |
Tasmanian Department of Education | 0 | 2 |
Catholic Education, South Australia | 4 | 0 |
South Australian Department of Education and Child Development | 6 | 17 |
235 | 49 |
Prior Year Comparison Commentary
1) Western Australia School Curriculum and Standards Authority – Reversal of accrual in FY19 that did not eventuate as an expense.
2) Australian Capital Territory Education Directorate - Reversal of accrual in FY19 that did not eventuate as an expense.
3) Victorian Curriculum and Assessment Authority – $216k was provided for the CCT Assessment Task Trial in FY20, that is not a consistent engagement each year. Additionally, the KMP involved took no part in the relevant executive decision and agreement.
Visit
https://www.transparency.gov.au/annual-reports/australian-curriculum-assessment-and-reporting-authority/reporting-year/2019-20-25