Department for Innovation and Skills 2019-20 Annual Report

Our purpose         

The Department for Innovation and Skills is a catalyst for innovation, entrepreneurialism, and a highly-skilled workforce that increases South Australia’s prosperity by focusing on the areas where we can provide the most support to our stakeholders.

Our vision   

The Department is an innovative and enterprising agency that supports individuals, businesses, and industries in the rapidly changing economic environment.

Our values  

We are focused on:

• Sustainability – taking responsibility for delivering our activities and supporting better ways of doing things.
• Collaboration & engagement – proactively meeting our clients’ needs and taking their views into account.
• Courage & tenacity – having the courage to be nimble and take calculated risks as a part of improvement and growth.

Our functions, objectives and deliverables 

The Department for Innovation and Skills contributes to the delivery of innovation, skills and migration to the State. The Department has provided support for industries, businesses and individuals to manage the dual impacts of the bushfires and COVID-19.

The Department’s key objectives are to:

1. Enhance entrepreneurial capability and develop high-quality, contemporary infrastructure that sustains South Australia’s economy.
2. Support South Australia through a focus on continuity of skills and vocational training and building capability to meet the changing needs in our economy.

The Department is achieving these objectives by:

• Facilitating access to world-class infrastructure to develop digital technology platforms for modern business.
• Advancing South Australia’s research capabilities, where science and technology are commercialised.

• Providing the creative industries with support to develop, create and connect.
• Supporting South Australian businesses, industries and skills sector in a bushfire and COVID-19 impacted environment.
• Supporting and promoting apprenticeships and traineeships in South Australia.
• Contributing to national policy responses and connecting across-government and with industry
• Providing support for retention, transition and mobilisation of workers across industry sectors.
• Lead state business and skilled migration in areas of industry need

Changes to the agency

During 2019-20 there were changes to the agency’s structure and objectives in response to the Coronavirus (COVID-19) global pandemic. A COVID-19 Coordinator was appointed to manage the Department’s response to the impact of COVID-19 on our stakeholders and clients.

In April 2020, Mark Duffy, Chief Executive, accepted a new role within the Department of the Premier and Cabinet to lead its public sector performance and reform unit.

Adam Reid, Executive Director, Innovation and Science, was selected to be the Acting Chief Executive and has since been confirmed in the role through a formal public recruitment process.

Andy Dunbar was appointed Acting Executive Director, Innovation and Science.

Download the Department for Innovation and Skills Organisational Chart.

The Hon David Pisoni MP is the Minister for Innovation and Skills. He oversees workforce training and skills, apprenticeships and traineeships, innovation and entrepreneurship, science and information economy, creative industries and skilled migration.

Madeline Richardson

Executive Director
Skills & Workforce Capability

Madeline is the Executive Director, Skills and Workforce Capability (SWC) and is leading one of the government’s key strategic projects in Skilling South Australia. Skilled People for the Future is the primary focus for SWC and will be achieved by:

• being demand driven with industry needs shaping investment
• changing perceptions to establish VET as a preferred pathway
• training system quality and market depth
• skilled careers through apprenticeships and traineeships, and
• co-design and scale up bespoke training models that meet current and future industry skills and capability needs.

Andy Dunbar

A/Executive Director
Innovation & Science

Andy is the Acting Executive Director, Innovation and Science, responsible for developing and supporting the state’s innovation system in partnership with other parts of government, research organisations, industry and business. This includes responsibility for the Office of the South Australian Chief Entrepreneur and the Office of the South Australian Chief Scientist. The Group is focused on supporting sustainable economic growth by:

• increasing South Australia’s global standing in science and research
• encouraging commercialisation of research through industry, research and government collaboration
• supporting entrepreneurs, start-ups and small business and attracting early stage and venture capital, and
• developing and supporting our creative industries.

Nari Chandler

Executive Director
Strategy, Policy & Migration

Nari is the Executive Director of the Strategy, Policy and Migration Group, playing a critical role in strengthening the South Australian economy by:

• coordinating, driving and delivering policy reforms that support economic growth and deliver a skilled workforce for the future
• leading state migration attraction in areas of industry need, to address skills gaps and encourage business investment
• ensuring the strategic communication of our agency’s services increase their uptake and inform people’s understanding of how these services will benefit them and the economy
• harnessing the power of economic data to provide insights that inform evidence-based policy development
• making connections between our agency’s services to improve outcomes for clients, and
• leading agency wide strategic planning and connecting this with our activities to drive targeted outcomes that achieve our objectives.

Phuong Chau

Executive Director
Performance & Business Operations

Phuong is the Executive Director, Performance and Business Operations and leads delivery of corporate services and solutions to position the Department to achieve its strategic objectives. The Group partners with clients and stakeholders to deliver on the following:

• People and Workplace: our People Plan recognises the best work is produced in an environment that welcomes new ideas and a diverse mix of people, investing in our people and providing opportunities, and creating a vibrant, connected one team culture
• Client Focus: designing and implementing client-centric solutions
• Business Systems: collaborating with other microeconomic agencies and driving business excellence in the frameworks, systems and policies that support efficient and effective operations
• Resource Management: leading an adaptive and sustainable approach to the management of our resources and assets including financial, physical and human resources.

Construction Industry Training Fund Act 1993

Economic Development Act 1993

South Australian Film Corporation Act 1972

Training and Skills Development Act 2008

Vocational Education and Training (Commonwealth Powers) Act 2012

Office of the Training and Skills Commission

Office of the Training Advocate

Adelaide Film Festival

Jam Factory

South Australian Film Corporation

*number of claimants assessed during the reporting period as having a whole person impairment of 30% or more under the Return to Work Act 2014 (Part 2 Division 5) 

**before third party recovery

Data for previous years is available at: data.sa.gov.au/data/dataset/dis-annual-report-statistics

Data for previous years is available at: data.sa.gov.au/data/dataset/dis-annual-report-statistics

The Office of the Commissioner for Public Sector Employment has a workforce information page that provides further information on the breakdown of executive gender, salary and tenure by agency.

The following is a brief summary of the overall financial position of the agency. The information is unaudited. Full audited financial statements for 2019-20 are attached to this report.

As announced in the 2019-20 State Budget, the ownership of key TAFE SA properties was transferred from Renewal SA to TAFE SA. The effective date of this transfer was originally set at 1 July 2019 and subsequently updated to 1 November 2019.

The transfer of these key properties provides TAFE SA with greater control over the strategic direction of its educational infrastructure and enabled the cessation of leasing arrangements between the Department for Innovation and Skills and Renewal SA, the termination of sub-lease arrangements with TAFE SA and the transfer of responsibility for VET property management and investment activities to TAFE SA.

In 2019-20 the department received total income of $470 million, a decrease of $51 million from the previous year primarily relating to:

• Decrease of $19 million associated with National Partnership revenue (Skilling Australians Fund) in line with the agreed funding profile between years, and
• Decrease of $40 million in TAFE SA infrastructure recharges due to the cessation of sub-lease arrangements following the sale of VET Infrastructure to TAFE SA.

Partially offset by;

• Additional Appropriation of $7 million.

The department’s total expenditure was $472 million in 2019-20, a decrease of $57 million compared to 2018-19 primarily relating to:

• Decrease of $41 million in supplies and services expenditure relating primarily to the cessation of lease arrangements with Renewal SA,
• Decrease of $21 million in grant expenditure relating primarily to reduced payments to TAFE SA and Creative Industries, and
• Decrease of $13 million in employee benefits expenditure relating primarily to reduced TVSPs, 2018-19 Machinery of Government changes and organisational realignment.

Partially offset by;

• Payments made to the consolidated account of $20 million relating to proceeds from the sale of property to TAFE SA.

The department has net assets of $40 million, an increase of $5 million since 30 June 2019 predominantly due to:

• Decrease of $15 million in payables relating primarily to once-off high payables as at 30 June 2019 for VET infrastructure, as well as a reduction in VET subsidy accruals, and
• Increase of $6 million in cash due to net cash generated from financing activities (capital contributions from government).

Partially offset by;

• Decrease of $18 million in property, plant and equipment primarily relating to the sale of VET Infrastructure to TAFE SA.

Explanations between 2019-20 original budget and actuals are provided at note 1.5 of the full audited financial statements attached to this report for variances where the variance exceeds the greater of 10% of the original budgeted amount and 5% of original budgeted total expenses.

The following is a summary of external consultants that have been engaged by the agency, the nature of work undertaken, and the actual payments made for the work undertaken during the financial year.

Consultancies with a contract value below $10,000 each

Consultancies with a contract value above $10,000 each

Data for previous years is available at: data.sa.gov.au/data/dataset/dis-annual-report-statistics

See also the Consolidated Financial Report of the Department of Treasury and Finance for total value of consultancy contracts across the South Australian Public Sector.

The following is a summary of external contractors that have been engaged by the agency, the nature of work undertaken, and the actual payments made for work undertaken during the financial year.

Contractors with a contract value below $10,000

Contractors with a contract value above $10,000 each

Data for previous years is available at: data.sa.gov.au/data/dataset/dis-annual-report-statistics

The details of South Australian Government-awarded contracts for goods, services, and works are displayed on the SA Tenders and Contracts website. View the agency list of contracts.

The website also provides details of across government contracts.

The Department’s Risk & Performance Committee (joint with the Department for Energy and Mining, the Department for Trade and Investment and TechInSA) has oversight of strategic risks. Strategic risks are those where the effect of an event or change in circumstances impacts the Department’s ability to achieve its strategic direction. Internal audit reviews focus on these strategic risks.

NB: Fraud reported includes actual and reasonably suspected incidents of fraud.

The Department employs a range of risk-based strategies to control and prevent fraud. These strategies form the Department’s Fraud Control Plan and include, but are not limited to, a related Policy and Procedure, segregation of duties, pre-employment screening, declarations of interest, and a financial management compliance program. The Plan and related activities are overseen by the Risk & Performance Committee.

Data for previous years is available at: data.sa.gov.au/data/dataset/dis-annual-report-statistics

Number of occasions on which public interest information has been disclosed to a responsible officer of the agency under the Public Interest Disclosure Act 2018:

DIS has appointed three responsible officers for the purposes of the Public Interest Disclosure Act 2018. There was one instance of disclosure of public interest information for DIS during 2019‐20, which was addressed in accordance with legislative requirements.

Data for previous years is available at: data.sa.gov.au/data/dataset/dis-annual-report-statistics

Note:  Disclosure of public interest information was previously reported under the Whistleblowers Protection Act 1993 and repealed by the Public Interest Disclosure Act 2018 on 1/7/2019.

The Carers’ Recognition Act 2005 is deemed applicable for the following: Department of Human Services, Department for Education, Department for Health, Department for Innovation and Skills, Department of Planning, Transport and Infrastructure, South Australia Police and TAFE SA.

Section 7: Compliance or non-compliance with section 6 of the Carers Recognition Act 2005 and (b) if a person or body provides relevant services under a contract with the organisation (other than a contract of employment), that person's or body's compliance or noncompliance with section 6.

DIS provides online training to staff regarding disability and inclusion which includes the Carer’s Recognition Act 2005, as well as flexible working and special leave options to assist employees in meeting caring responsibilities.

Data for previous years is available at: data.sa.gov.au/data/dataset/dis-annual-report-statistics

Website design improvement

• It was identified that the end user experience for an RTO Assessor using the Client Eligibility form was not efficient due to the size of the printable form on our website. This was rectified by modifying the size of the form on our website and RTOs now have an improved records management process and decreased paper usage.
• The ATO links on the Immigration SA website were updated in conjunction with the ATO information and advice.

Improved communication between apprentices and providers

• For future transfers of training contracts to new providers, DIS will be part of the communication process with the apprentice/employer.

Amendment to an invoicing procedure with training providers

• Changes to invoicing processes between DIS and providers were implemented to prevent customers, both past and present, being inconvenienced financially when a provider is at fault in not invoicing DIS for approved training in DIS funded programs.