Australian Council for Educational ResearchImproving LearningACER08-09Annual ReportiiAbout ACERThe Australian Council for ...
have extensive experience and expertise in a range ofdisciplines and research methods. ACER also supports thework of profe...
Research projects ............................................................ 10Staff publications .........................
❙ Integrity – being ethical, honest andtrustworthy in all our relationships andinteractions❙ Responsiveness – anticipating...
Deputy CEO(Research)John AinleyDirectorCorporateDevelopmentRobert MooreDeputy CEO(ProfessionalResources)Geoff Masters(acti...
CorporateServicesWayne DawesAssessment andReportingMargaret ForsterTeaching,Learning andLeadershipSteve DinhamNational and...
Phil McKenzieACER PressRalph SaubernACERLeadershipCentreNeil CarringtonCentre forProfessionalLearningKerry-AnneHoadCunning...
Larry FosterResources CorporateCommunicationsLouise ReynoldsFacilitiesAnita SheeanFinanceGary KellyInformationTechnologyDa...
ACER also has responsibility for the Australian component of other large international studies:Progress in International R...
The year in reviewACER experienced continued business growth in 2008-09 with annual income increasing to morethan $59 mill...
inform work under the National Partnership agreementson literacy and numeracy, low SES communities andteacher quality. Rep...
in reporting school performances.More than 25 000 students from 29 Australian and New Zealand universities participated in...
08-09Sustainability reportACER is committed to fostering an understanding of and a responsibility for the physicalenvironm...
and monitoring progress towards improvement. The Action Plan sets out a range of specific goalsfor 2009, relating to the o...
Professional learning andequal opportunity for womenStaff have participated in a broad range of learning and development a...
are required to meet stringent criteria each year. This isthe fourth successive year ACER has receivedthe award and it pro...
08-09Research projectsINTERNATIONAL PROJECTSInternationalEducational Testing Service❙ Programme for International Assessme...
❙ PISA 2009 Optional Electronic Reading Assessment❙ PISA 2003 Thematic Report on MathematicalLiteracy and Instruction❙ Add...
for ICFES in Colombia.DubaiThe Knowledge and Human Development Authority❙ Data Analysis for the TIMMS Project❙ PISA Main S...
Tecnológico de Monterrey❙ Assessment of reading and mathematics for15-year-old studentsNew ZealandDepartment of Labour New...
❙ Implementation of PISA+ 2009 Field TrialUnited StatesAmerica’s Choice Inc (USA)❙ Development of Literacy and Numeracy Te...
❙ Australian School Innovation in Science, Technologyand Mathematics Project❙ OECD Teaching and Learning International Sur...
❙ National Assessment Program - Analyses Literacyand Numeracy❙ NAPLAN - Trial administration & Test Construction❙ NAPLAN -...
Office for Aboriginal and Torres Strait Islander Health❙ Indigenous Mental Health TextbookSmith Family❙ Post-program outco...
Department of Education and Training❙ NSW Test for Year 5 Opportunity Classes (OCP)❙ NSW Selective High Schools Test (SHSE...
❙ Academic Leadership Capabilities for HigherEducationQLDBrisbane Catholic Education Office❙ Who’s coming to School?Disabi...
Development Council❙ Dare to LeadBallarat and Clarendon College❙ Conducting Years P-2 literacy and numeracyassessments and...
Research, Policy, Practice❙ TIMSS 2007 Study of High Achieving Countries❙ Sample Assessment Project - Stage 1Department of...
❙ Analysis of Student Studies of Asia in Years 11 and12VicHealth❙ Evaluation of Streets Ahead: Supporting children toget A...
Development ProjectLeadership Centre WA❙ Evaluation of New Direction in School LeadershipUniversity of Western Australia❙ ...
Coates, H. & Rothman, S. (2008). Participation in VET inSchools (LSAY Briefing; No.15). Camberwell, Vic.:ACER.Curtis, D. &...
Employment and Workplace Relations.Edwards, D. & Smith, T.F. (2008). Supply, demandand approaches to employment by people ...
Lonsdale, M. (2008). Schools First: Final Report,Camberwell, Vic.: ACER.Marks, G. (2009). The Occupations and Earnings of ...
Cooperation Programme.Mellor, S. (2009). National Assessment Program - Civicsand Citizenship: Years 6 and 10 Report 2007.M...
Tatto, M.T., Schwille, J., Senk, S., Ingvarson, L.C., Peck,R., & Rowley, G. (2009). Teacher Education andDevelopment Study...
AUQF.Cresswell, J.C. (2009). PISA Science 2006: InternationalResults. In R.W. Bybee and B.J. McCrae (eds), PISAScience 200...
Sanders (Eds) Quantifying Theory: Bourdieu’ . Springer.Marks, G. N., Cresswell, J. & Ainley, J. (2008). ExplainingSocioeco...
Arlington, Virginia: National Science TeachersAssociation Press.16REFEREED JOURNAL ARTICLESBirrell, B. & Edwards, D. (2009...
of university attendance. Australian UniversitiesReview 51.1 (2009): 61-70.Edwards, D. (2008). Increasing competition for ...
Design and Concept. CADMO, 17:1, 21-34.Schulz, W. & Fraillon, J. (2008). El Estudio Internacionalsobre Educación Cívica y ...
Campbell, Teacher , 202, June/July, 64.Coates, H. (2009). Engaging College Communities: Theimpact of residential colleges ...
14-17.Lacey, K. & Anderson, M. (2009). Working together: Thecurrent state of co-principalship, Teacher , 201, May,58-61.Mc...
following report together with the financial statements for the financial year ended 30 June 2009.DirectorsThe names of Di...
Chris Robinson, Bachelor ofAgricultural Economics, Post GradDiploma of Social Security4 1 - -Sheldon Rothman, BA MAT MEd E...
DividendsACER is a not for profit company and neither declares nor pays dividends. The company is prohibitedfromissuing di...
No person has applied for leave of Court to bring proceedings on behalf of the company or intervene inany proceedings to w...
$Revenue 2a59,823,175 55,618,740 57,896,455 54,614,809Other income 2b- 3,651,997 - 3,651,997Changes in inventories of fini...
Printing and stationery expenses(1,876,054) (1,676,337) (1,875,900) (1,675,917)Royalty expense(362,667) (364,500) (362,667...
$2008$ASSETSCurrent assetsCash and cash equivalents410,622,599 5,911,681 9,472,331 5,408,082Trade and other receivables56,...
Financial assets720,087 85,707 20,087 85,707Property, plant and equipment929,106,884 30,989,212 29,105,785 30,987,866Total...
TOTAL LIABILITIES 26,577,614 24,853,939 26,312,108 24,815,910NET ASSETS 27,793,520 26,172,257 27,772,199 26,320,496EQUITYR...
translationreserve$HedgeReserve$Total$Balance as at beginning of year 20,018,838 5,324,840 548,280 - 428,538 26,320,496Net...
$Foundation forEducationalResearch Fund$Foreigncurrencytranslationreserve$HedgeReserve$Total$Balance as at beginning of ye...
Australian Council for Educational Research Ltd and Controlled Entities   ABN 19 004 398 14524Statement of changes in equi...
Balance as at beginning of year 19,842,432 5,324,840 548,280 28,167 428,538 26,172,257Net surplus (deficit) 3,676,239 - - ...
translationreserve$HedgeReserve$Total$Balance as at beginning of year 15,086,620 5,324,840 298,280 - 1,238,157 21,947,897N...
$2008$2009$2008$Cash from operating activities:Receipts from customers 64,609,512 57,171,944 62,522,838 56,042,431Payments...
The accompanying notes form part of the financial statements.Australian Council for Educational Research Ltd and Controlle...
power to govern the financial and operating policies so as to obtain benefits from its activities. Inassessing the power t...
overheads. Overheads are applied on the basis of normal operating capacity. Costs are assignedon the basis of weighted ave...
will flow to the Group and the cost of the item can be measured reliably. All other repairs andmaintenance are charged to ...
These gains and losses are included in the income statement. When revalued assets are sold,amounts included in the revalua...
to instruments classified as at fair value through profit or loss are expensed to profit or lossimmediately. Financial ins...
expected future net cash flows will necessitate an adjustment to the carrying value with aconsequential recognition of an ...
investments to maturity. They are subsequently measured at amortised cost using theeffective interest rate method.(iv) Ava...
by employees to balance date. Employee benefits that are expected to be settled within one yearhave been measured at the a...
adjusted for any variances or claims allowable under the contract.All revenue is stated net of the amount of goods and ser...
at the exchange rate at the date of the transaction. Non monetary items measured at fair valueare reported at the exchange...
1r Critical accounting estimates and judgmentsThe directors evaluate estimates and judgments incorporated into the financi...
adoption of these standards. A discussion of those future requirements and their impact on thecompany is as follows:• AASB...
from 1 January 2009). The revised AASB 123 has removed the option to expense all borrowingcosts and will therefore require...
(applicable for annual reporting periods commencing from 1 July 2009). This amendmentrequires that non -current assets hel...
Note2009$2008$2009$2008$2a Revenue- sale of goods 8,216,079 8,128,238 8,216,079 8,128,238- services revenue 50,633,777 46,...
Notes to the financial statements (for the year ended 30 June 2009)3      Profit for the yearConsolidated Parent2009$2008$...
- Auditing or reviewing the financial report 15,134 23,528 - -Rental expense on operating leases 785,155632,929 757,863 61...
CURRENTTrade receivables 6,938,810 7,315,876 6,856,140 7,222,223Provision for impairment of receivables (175,000) (150,000...
Movement in provision for impairment of receivables is as follows:2009 ConsolidatedOpeningbalance$Charge forthe year$Amoun...
Amountswritten off$Closingbalance2009$Current trade receivables 150,000 25,000 - 175,000Non-current associated companies 9...
Non-current associated companies 927,458 - - 927,4581,052,458 25,000 - 1,077,458Australian Council for Educational Researc...
The ageing analysis of receivables is as follows:Consolidated Parent2009$2008$2009$2008$0–30 days 5,965,856 5,490,625 5,88...
2008$2009$2008$CURRENTAt CostWork in progress 338,406 532,036 338,406 532,036Finished goods 1,715,310 1,629,575 1,715,310 ...
- - 14,717 43,931- - 14,717 43,931Available-for-sale financial assets comprise investments in the ordinary issued capital ...
Gains and losses arising from changes in the fair value of designated forward exchange contracts areinitially recognised d...
Consolidated Parent2009$2008$2009$2008$LAND AND BUILDINGSFreehold landAt fair value 10,650,000 10,650,000 10,650,000 10,65...
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
Australian council  for educational research
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Australian council for educational research

  1. 1. Australian Council for Educational ResearchImproving LearningACER08-09Annual ReportiiAbout ACERThe Australian Council for Educational Research (ACER) isan independent, not-for-profit organisation which providesstate-of-the-art educational research, products and services.Established in 1930, ACER has a long history and solidreputation as a provider of non-aligned, reliable supportand expertise to education policy makers and professionalpractitioners. ACER also provides learning tools for students,manages a range of testing and assessment services andconducts research and analysis in the education sector. Itreceives no direct financial support from government andgenerates its entire income through contracted researchand development projects, and through products andservices that it develops and distributes.ACER is a leader in the provision of quality educationalresearch, both within Australia and internationally. As anational, independent research body, ACER brings a highlevel of expertise and objectivity to its work. One of ACER’sgreat strengths is its people. Members of the research team
  2. 2. have extensive experience and expertise in a range ofdisciplines and research methods. ACER also supports thework of professional practitioners through the developmentand provision of a range of research-based products andservices.The organisation has increasing international reach throughits extensive body of work, particularly in the Asia-Pacificregion and Europe, and through its offices in India and theMiddle East. ACER provides consultancy and professionaldevelopment support to several countries establishingnational assessment programs, as well as undertakingcommissioned research and providing assessment servicesto a broad range of international clients.ACER has become one of the world’s leading educationalresearch centres, committed to creating and distributingresearch-based knowledge, products and services toimprove learning across the lifespan in both formal andinformal settings.Organisational structure ........................................................... 2CEO comment .............................................................................. 3The year in review ....................................................................... 4Sustainability report ....................................................................6Professional learning andequal opportunity for women .................................... 808–09 on record ........................................................................... 9
  3. 3. Research projects ............................................................ 10Staff publications .............................................................. 14Directors’ report .............................................................. 18Auditor’s independence declaration ..................... 20Financial report ................................................................. 21Directors’ declaration .................................................... 59Independent audit report ........................................... 60Members of ACER Board of Directors .............. 62Members of ACER staff ............................................... 63MissionImproving LearningOur mission is to create and promoteknowledge and tools that can be used toimprove learning across the lifespan.Values❙ Expertise – producing high quality,innovative research and research-basedservices and materials to improvelearning❙ Innovation – taking a creative, flexibleand bold approach to the developmentof knowledge, services and materials❙ Independence – providing advice andcommentary that is informed throughresearch, is authoritative, and non-aligned
  4. 4. ❙ Integrity – being ethical, honest andtrustworthy in all our relationships andinteractions❙ Responsiveness – anticipating,understanding, meeting and exceedingclient and customer expectations❙ Reflection & improvement – being self-reflective and listening to and learningfrom others in order to improve thequality of our work, our efficiency andproductivity❙ Positive relationships – creatingan organisational environmentcharacterised by respect, fairness,openness and support of physical andemotional wellbeing❙ Individual fulfilment – encouragingpersonal contribution and achievement,and the pursuit of excellence208-09Organisational structureACER is an independent, not-for-profit company, the members of which are the ten members of theACERCouncil. For a list of the Members of ACER Council, see page 62.Chief Executive OfficerGeoff Masters
  5. 5. Deputy CEO(Research)John AinleyDirectorCorporateDevelopmentRobert MooreDeputy CEO(ProfessionalResources)Geoff Masters(acting)DirectorInternationalDevelopmentPeter McGuckianDirectorAssessmentServicesDeirdre JacksonDirectorHumanResourcesvacantDirector
  6. 6. CorporateServicesWayne DawesAssessment andReportingMargaret ForsterTeaching,Learning andLeadershipSteve DinhamNational andInternationalSurveysJohn AinleyPolicy Analysisand ProgramEvaluationAdrian BeavisSystemwideTestingChris FreemanTransitions andPost-schoolEducation andTraining
  7. 7. Phil McKenzieACER PressRalph SaubernACERLeadershipCentreNeil CarringtonCentre forProfessionalLearningKerry-AnneHoadCunninghamLibrary andRecord ServicesLance DevesonMarketingAnnemarie RollsSchool EducationAdele ButlerHigher EducationMaritaMacMahon BallCorporate andVocational
  8. 8. Larry FosterResources CorporateCommunicationsLouise ReynoldsFacilitiesAnita SheeanFinanceGary KellyInformationTechnologyDaryl NguyenProject ServicesJim CarriganCEO commentA feature of this year has been the important contribution ACER has madeto several international studies.In December ACER released the report of Australia’s performance in the2007 cycle of the IEA’s Trends in International Mathematics and ScienceStudy (TIMSS), generating considerable media interest. Despite a significantdecline in Year 8 science achievements, Australian results were similar toresults four year earlier. However, this was in a context in which othercountries, including England and the United States, made big improvements.The OECD decided to make the Programme for International Student Assessment (PISA)2009 tests available to a number of countries for use in 2010. ACER will manage this and theparticipating countries will contract directly with ACER.
  9. 9. ACER also has responsibility for the Australian component of other large international studies:Progress in International Reading Literacy Study (PIRLS), OECD Teaching and LearningInternational Survey (TALIS), IEA Second Information Technology in Education Study (SITES) andProgramme for the International Assessment of Adult Competencies (PIAAC).ACER has been monitoring the developing national education agenda and working to ensure thatwe are well positioned to make a contribution. During 2008 ACER made a significant contributionto the new National Assessment Program, Literacy and Numeracy (NAPLAN) in the areas ofitem writing and trial testing for 2008 and 2009, and some of the marking and analysis. ACER willconduct all aspects of test development for NAPLAN 2010.This year has seen an increased focus on support for school communities. In the Schools Firstprogram ACER is working with the Foundation for Young Australians and National AustraliaBank to provide $5 million to schools in each of the next three years for school-communitypartnerships. ACER developed the award criteria and will manage the judging process. Wecontinue to support the Wesley College-Fitzroy Valley partnership which is designed to promotecultural and vocational learning for students in these two communities. A ‘studio school’ is beingdeveloped at Yiramalay on Leopold Downs, made available for this purpose by the traditionalowners (Bunuba people). ACER is assisting Wesley in the development of the vocationalcurriculum and its VET accreditation.ACER experienced continued business growth this year. While we continue to monitor the impactof the global financial situation and exercise caution and restraint, we achieved a record level ofincome and a very pleasing financial result.Professor Geoff MastersACER Chief Executive Officer308-09
  10. 10. The year in reviewACER experienced continued business growth in 2008-09 with annual income increasing to morethan $59 million and a record operating surplus of $4.3 million. This is a pleasing result in a year inwhich many other parts of the economy experienced downturns.After conducting the national analysis and reporting of the NAPLAN 2008 results, ACERsuccessfully bid to undertake the national data analysis and reporting for the 2009 testing. Inparallel, ACER is undertaking all of the test development for NAPLAN 2010 – the first year ACERhas been responsible for all test development for this program.ACER Press has been further developing the PAT Maths and PAT Science test materialsto enable users to track student performance and progress from P–10. This workincludes an exploration of the feasibility of aligning PAT test results withthe scales used to monitor and report Year 3, 5, 7 and 9 literacy andnumeracy results nationally.In May ACER launched a new bookshop in Brisbane. There arenow bookshops located in Melbourne, Perth and Brisbane, inaddition to the online services.The Queensland government asked ACER CEO ProfessorGeoff Masters to review literacy, numeracy and sciencestandards in Queensland primary schools. The reviewinvolved analysis of available data on the performances ofQueensland students, a review of international researchevidence and consultations with stakeholders. Preliminaryrecommendations were made at the start of 2009 and thefinal report released in May.In May ACER hosted a forum on research evidence to
  11. 11. inform work under the National Partnership agreementson literacy and numeracy, low SES communities andteacher quality. Representatives of the commonwealth, stateand territory departments, and most Catholic educationauthorities and independent schools associations attended.ACER has been involved in the national componentof several international studies: Programme forInternational Student Assessment (PISA),Trends in International Mathematicsand Science Study (TIMSS), Progress inInternational Reading Literacy Study(PIRLS) 2011, OECD Teaching and45Learning International Survey (TALIS) and IEA Second Information Technology in Education Study(SITES). Results from the 2007 Trends in International Mathematics and Science Study (TIMSS)were released in December 2008.Through Schools First, ACER is working with the Foundation for Young Australians and NationalAustralia Bank to provide $5 million to schools in each of the next three years. ACER developedthe award criteria and will manage the judging process.ACER’s Research Conference 2008 took place in Brisbane in August. The conference themethis year was ‘Building skills for life and work’. Speakers outlined research findings relating to thedevelopment of vocational skills, literacy, numeracy, civics and citizenship, and employability skills.The Deputy Prime Minister The Hon Julia Gillard, MP, addressed the conference and called forbetter information about the contexts in which individual schools work and greater transparency
  12. 12. in reporting school performances.More than 25 000 students from 29 Australian and New Zealand universities participated in thelatest cycle of the Australasian Survey of Student Engagement (AUSSE), conducted in 2008. This isthe largest and most advanced survey of its kind and results were released in April.ACER has begun work on the Programme for the International Assessment of AdultCompetencies (PIAAC) – a new international adult literacy study, commissioned by the OECD,which will be administered on a three-year cycle. The first administration will be in 2011 in about24 countries. The household survey of adults is linked with previous international adult literacysurveys. The project will help to establish ACER’s expertise in the assessment of adult learning.The Health Professions Admission Test-Ireland (HPAT Ireland) is a new test used to assesscandidates applying for admission to undergraduate medicine at five Irish universities. ACERdeveloped the test and administered the first HPAT Ireland in February.Many in the education community were saddened by the loss of Dr Ken Rowe and of Mr DavidHolcombe in the Victorian bushfires on 7 February 2009. Ken Rowe had been with ACER from2000 until his retirement in 2008 as Research Director of ACER’s Learning Processes and Contextsresearch program. David Holcombe joined ACER as a casual marker in 2008. A fund was establishedto accept donations in Ken’s memory. Funds will be used to support research training in quantitativemethods and to support schools, kindergartens or early childhood centres in the Marysville area.Professor Peter Karmel died in December 2008 at the age of 86. Professor Karmel was a Memberof ACER Council from 1968 to 1999, and Chair of the ACER Council from 1979 to 1999.Professor Karmel played a significant role in the history and development of ACER.ACER was again awarded an Equal Opportunity for Women in the Workplace Agency (EOWA)Employer of Choice for Women citation. This is the fourth consecutive year in which ACER hasreceived the award.6
  13. 13. 08-09Sustainability reportACER is committed to fostering an understanding of and a responsibility for the physicalenvironment and to incorporating environmental sustainability considerations in all infrastructureand operations planning and functions.Sustainable practices support ecological, human and economic health and vitality. Sustainabilitypresumes that resources are finite, and should be used conservatively and wisely with a view tolong-term priorities and consequences of the ways in which resources are used.In September 2008 ACER established a Sustainability Advisory Committee (ASAC) as a formalACER committee to provide advice to the CEO. This committee replaced the EnvironmentalReference Group that was established by staff as a voluntary interest group.The ASAC exists to provide advice on all matters pertaining to environmental sustainabilityat ACER. In particular, this includes developing strategic directions and long-term planning forminimising resource consumption and waste generation; establishing benchmarks and investigatingways of integrating sustainable practices into operations; establishing sustainability measurement,monitoring, management and reporting mechanisms; managing the preparation of ACER’sGreenhouse Challenge annual report; gathering information about best practice; and raisingawareness and encouraging staff to apply principles of best practice.Sustainability Strategy and Action PlanASAC developed a Sustainability Strategy and Action Plan. The committee developed a draft andsought the views of staff via an intranet discussion board. After considering staff feedback theACER Sustainability Strategy was adopted.The Sustainability Strategy covers the following objectives in relation to ACER’s work andenvironmental sustainability: strengthening leadership; integrating environmental sustainability intosystems and policies; positively influencing strategic relationships; involving the ACER community;
  14. 14. and monitoring progress towards improvement. The Action Plan sets out a range of specific goalsfor 2009, relating to the objectives in the Sustainability Strategy.ACER has participated in the Greenhouse Challenge Plus (formerly the Greenhouse Challenge)since 2001. This program, partnering industry and government in a voluntary scheme to reducegreenhouse gas emissions, ceased on 30 June 2009. ACER will investigate becoming involved in itsreplacement, the Climate Change Action Fund when details become available.Recent initiativesInitiatives implemented during the year include:❙ ACER’s promotion of, and participation in, Earth Hour;❙ computers set to automatically print double-sided;❙ a note placed at the bottom of all emails regarding protecting the environment by not printingunnecessarily;❙ a notice on the Intranet asking staff to turn off computers at the end of the day;❙ investigation into the quality of paper to reduce weight;❙ collection of organic waste in kitchens in addition to hard waste recycling;❙ a Garden Committee formed and a vegetable garden established in the laneway next to theCamberwell building;❙ the induction pack for new staff will now be electronic, and will include a statement regardingACER’s commitment to sustainability;❙ upgrading the urinals in the Sydney office, leading to ACER winning an environmental initiativeaward from the South Sydney Corporate Park;❙ investigation of the installation of the desert cube system in the urinals at ACER’s OperationsCentre in Mulgrave; and❙ a competition for staff to provide ‘green’ ideas.7
  15. 15. Professional learning andequal opportunity for womenStaff have participated in a broad range of learning and development activities. Many individualscontinued or commenced higher education courses, including Masters in Communication, Mastersin Accounting, Masters in Human Resource Management and Graduate Certificate in Psychology.Others attended training programs such as project management fundamentals, software training,CPA courses, SMART Board demonstrations and psychometrics courses.The Caring for Older Family Members Information Kit was produced this year. This was developedby the Professional Learning Unit in conjunction with the Equal Opportunity for Women AdvisoryCommittee (EOWAC) to assist staff who are balancing work and family responsibilities.The Equal Opportunity for Women Advisory Committee (EOWAC) drafted the annual EEO(Women) Report for the ACER Board of Directors. The Report identifies and analyses issuesaffecting the employment experience of women at ACER. Some of these issues include:❙ From 1 April 2008 to 31 March 2009, 41 new positions were advertised and filled (excludingcasual positions). Of these, 28 were filled by women.❙ Of the 22 staff considered for advancement, 8 were women and all but one were successful inbeing advanced to a higher position.❙ Of the 23 staff members in receipt of study support (financial and other) for a tertiary orfurther qualification, 18 were women. Of those women, three completed their qualificationsduring the reporting period.❙ Women comprise 63 per cent of the workforce but occupy 33 per cent of senior manager positions.ACER obtained a 2009 EOWA Employer of Choice for Women citation. The Equal Opportunity forWomen in the Workplace Agency (EOWA) awards this citation on an annual basis and ACERis one of 111 organisations across Australia to receive the award this year. To berecognised as an EOWA Employer of Choice for Women, employers
  16. 16. are required to meet stringent criteria each year. This isthe fourth successive year ACER has receivedthe award and it provides a useful wayof benchmarking our policiesand workplace environment.It sends a clear messagethat we are committedto fully utilising,developing andretaining our staff,including women.8908-09on recordResearch projects ...................................................................... 10Staff publications ......................................................................... 14Directors’ report ........................................................................ 18Auditor’s independence declaration ............................... 20Financial report ........................................................................... 21Directors’ declaration .............................................................. 59Independent audit report ..................................................... 60Members of ACER Board of Directors ........................ 62Members of ACER staff .........................................................6310
  17. 17. 08-09Research projectsINTERNATIONAL PROJECTSInternationalEducational Testing Service❙ Programme for International Assessment of AdultCompetencies (PIAAC)International Association for Educational Assessment❙ Member of IAEA Executive CommitteeInternational Association for the Evaluation ofEducational Achievement❙ International Civic and Citizenship Education Study❙ PIRLS Web-based Reading Survey❙ IEA Test DevelopmentInternational Association for the Evaluation ofEducational Achievement❙ Teacher Education Development Study (incollaboration with Michigan State University)Organisation for Economic Cooperation andDevelopment (OECD)❙ OECD Programme for International StudentAssessment (PISA) 2006 and 2009 - internationalcomponent❙ PISA Country Profiles database (PISA Data andDissemination Services)
  18. 18. ❙ PISA 2009 Optional Electronic Reading Assessment❙ PISA 2003 Thematic Report on MathematicalLiteracy and Instruction❙ Additional Round of PISA 2009 (PISA plus)BangladeshWorld Bank❙ Review of report on Bangladesh Assessment ofpupils in Grades 3 & 5 2008BruneiMinistry of Education Brunei❙ Brunei Consultancy on Assessment of StudentCompetencies❙ Brunei Curriculum ConsultancyCanadaUNESCO Canada❙ Literacy Assessment and Monitoring Programme(LAMP)ChileMinistry of Education Chile❙ Review of Education Progress MapsColumbiaInstituto Colombiano para el Fomento de laEducación Superior (Colombian Institute for thePromotion of Higher Education)❙ Assistance with test item construction and training
  19. 19. for ICFES in Colombia.DubaiThe Knowledge and Human Development Authority❙ Data Analysis for the TIMMS Project❙ PISA Main Study in DubaiHong KongCurriculum Development Institute Hong Kong❙ Consultancy regarding the development of LOF forstudents with learning disabilitiesHong Kong Polytechnic University❙ Development of Graduating Students’ LanguageProficiency Assessment test materialsIndonesiaAusAid❙ Australia-Indonesia Basic Education Program -Policy Verification Case Study❙ Australia-Indonesia Basic Education Program -Analysis of Teacher Profile Data❙ Quality of Education in MadrasahWorld Bank❙ National Examination Assessment of ESA IndonesiaMexicoMexican Ministry for Public Education❙ SEPISA, a sample assessment of reading andmathematics for secondary students in Mexico
  20. 20. Tecnológico de Monterrey❙ Assessment of reading and mathematics for15-year-old studentsNew ZealandDepartment of Labour New Zealand❙ Evaluation of Media Campaigns in relation to AdultLiteracy, Language and Numeracy (LLN) IssuesMinistry of Education New Zealand (with CognitionConsulting Ltd)❙ Survey of Special Education Resourcing❙ Research Services for NZ Ministry of EducationNew Zealand Council for Educational Research/Tertiary Education Commission (primary contractor)❙ Development of Adult Literacy and NumeracyAssessment Tool11SwitzerlandInternational Labour Organisation - Switzerland❙ Toolkit on Human Resources for the TeachingProfessionTajikistanWorld Bank❙ Design of National Testing Centre TajikistanUnited Arab EmiratesUAE Ministry of Education
  21. 21. ❙ Implementation of PISA+ 2009 Field TrialUnited StatesAmerica’s Choice Inc (USA)❙ Development of Literacy and Numeracy Testing forStudents in Grade 6 and Grade 9NATIONAL PROJECTSAustralian Institute of Family Studies❙ Longitudinal Survey of Australian ChildrenCommonwealth Department of Education,Employment and Workplace Relations❙ Longitudinal Surveys of Australian Youth (LSAY)❙ OECD Programme for International StudentAssessment (PISA) 2006 and 2009 Nationalcomponent (also funded by state and territoryeducation departments)❙ AQTF Employer and Learner Quality Indicators❙ Investigation into the Current Provisions ofIndigenous Language Programmes❙ TIMSS 2006❙ TIMSS 2010❙ Australian School Teacher and Leaders Survey❙ IEA SITES 2006❙ Mid-term evaluation of Boosting Innovation inScience, Technology and Mathematics TeachingProgramme
  22. 22. ❙ Australian School Innovation in Science, Technologyand Mathematics Project❙ OECD Teaching and Learning International Survey(Australian Component)❙ Science and Maths Postgraduates in Australia:Supply, Demand and Employment Outcomes❙ Study of Employment Outcomes Five Years afterGraduation from University❙ Consultancy Services in relation to AEI-NOOSRQualifications Recognition Stakeholder Survey2008-09❙ Scoping Study to Investigate Online Learning toFacilitate Evidence Sharing (LNET)❙ Literacy and Numeracy National Partnership❙ Starting Point Analysis of Early ChildhoodEducation❙ National Teaching Professional Framework andStandards❙ Preparatory Work to support Australia’sparticipation in the Progress in InternationalReading Studies (PIRLS) Project❙ Schools Performance and Reporting❙ Evaluation of literacy and numeracy diagnostictools currently in use in Australian SchoolsCurriculum Corporation
  23. 23. ❙ National Assessment Program - Analyses Literacyand Numeracy❙ NAPLAN - Trial administration & Test Construction❙ NAPLAN - Item Review and Trial Test FormDevelopmentDepartment of Families, Housing, Community Servicesand Indigenous Affairs❙ Longitudinal Study of Indigenous Children❙ Analysis of PISA Data for Indigenous StudentsGraduate Careers Council of Australia❙ Analysis and Reporting of Course ExperienceQuestionnaire (CEQ) and the❙ Postgraduate Research Experience Questionnaire(PREQ)Ministerial Committee on Education, Employment andYouth Affairs (MCEETYA)❙ Indigenous LLANS❙ Longitudinal Literacy and Numeracy Study❙ National Assessment Program Civics andCitizenship 2007❙ National Assessment Program ICT Literacy❙ National Assessment Program Civics andCitizenship 2010National Australia Bank❙ Schools First
  24. 24. Office for Aboriginal and Torres Strait Islander Health❙ Indigenous Mental Health TextbookSmith Family❙ Post-program outcomes study of Learning for LifeExit Students12ACTACT Department of Education❙ ACT Scaling TestNorthern TerritoryCentral Australian Remote Health❙ Service Delivery Review of Central AustralianRemote Health Development Services 2008Charles Darwin University❙ Pilot Study: ‘Abracadabra’ Literacy InterventionNorthern Territory Department of Education andTraining❙ Evaluation of Literacy Approaches in the NorthernTerritoryNSWBusiness Council of Australia❙ Quality of Teaching reportDepartment of Corrective Services❙ Development of Test items and Test Administration:Applicants for Correctional Officer Positions
  25. 25. Department of Education and Training❙ NSW Test for Year 5 Opportunity Classes (OCP)❙ NSW Selective High Schools Test (SHSET)❙ Online Training Program for Practicing Teachers toexperience the application of the 2009 NAPLANWriting Task RubricGavin Jones Communications (main client: NSWDepartment of Ageing Disability and Home Care)❙ Information for Aboriginal Families with a Childwith a DisabilityMicrosoft Partners in Learning❙ Best Start Literacy AssessmentNSW Institute of Teachers❙ Research Digest for TeachersSEMA (main client NSW DET)❙ Essential Secondary Science Assessment❙ National Assessment Program - Literacy andNumeracy test marking NSWSmart Population Foundation❙ RCN DVD EvaluationUniversity of New England❙ Changing Academic ProfessionUniversity of Western Sydney (Principal client:Carrick Institute for Learning and Teaching in HigherEducation)
  26. 26. ❙ Academic Leadership Capabilities for HigherEducationQLDBrisbane Catholic Education Office❙ Who’s coming to School?Disability Services Queensland❙ Evaluation of the Post-school Services ProgramQueensland Department of Education, Training & TheArts❙ Queensland Education Performance ReviewSAAustralian Principals Association❙ Whole School Matters❙ Assistance with Teaching and Learning BookletDepartment of Education and Children’s Services❙ Variance Partitioning of PISA DataTasmaniaAlliance of Girls Schools❙ Review of Senior Secondary achievement in theAlliance of Girls SchoolsVictoriaAssociation of Independent Schools in Victoria❙ Building Educational Effectiveness in IndependentSchoolsAustralian Principals Associations Professional
  27. 27. Development Council❙ Dare to LeadBallarat and Clarendon College❙ Conducting Years P-2 literacy and numeracyassessments and reporting resultsCatholic Education Office❙ Student Exit Survey❙ AGQTP Administration - Professional Learning❙ Plan for an Evaluation and Revision of theLeadership Standards Framework - CatholicEducation Office❙ Primary Principal AppraisalDepartment of Education and Early ChildhoodDevelopment❙ Evaluation of the Literacy Improvement TeamsInitiative, 2007-2008❙ Assessment of English in the Early Years ofSchooling❙ Current best practice approaches to improvingconsistency in teacher judgments❙ On Track❙ An Integrated Approach to Improving StudentOutcomes in a Community13❙ Integrated birth to 18 Learning and Development:
  28. 28. Research, Policy, Practice❙ TIMSS 2007 Study of High Achieving Countries❙ Sample Assessment Project - Stage 1Department of Family and Community Services❙ Longitudinal Survey of Australian Children❙ Assessment Informing Teaching and Learning(AITL)Department of Justice❙ Gambling and Young PeopleE-Works❙ Flexible Learning Toolboxes ProjectMelbourne Development International❙ Assistance with design, development,implementation and support for AusAidEducational Resource FacilityMurdoch Children’s Research Institute❙ Hosting and Development of Australian EarlyDevelopment Index❙ Raising Children NetworkRMIT University❙ RMIT Academic Promotions ReviewSkills Victoria❙ Analysis of University Student EntryUniversity of Melbourne❙ Teaching Quality Indicators in Higher Education
  29. 29. ❙ Analysis of Student Studies of Asia in Years 11 and12VicHealth❙ Evaluation of Streets Ahead: Supporting children toget Active in their NeighbourhoodsVictoria University❙ VU DividendVictorian Curriculum and Assessment Authority(VCAA)❙ Victorian General Achievement Test❙ Sample Assessment SurveyWADepartment of Education and Training❙ Western Australian Monitoring Standards inEducation (WAMSE) Science❙ Western Australian Monitoring Standards inEducation (WAMSE) Society and Environment❙ Evaluation of Aboriginal Literacy Strategy❙ Development of a Framework for a NationallyConsistent Dataset Concerning the TeachingWorkforce across AustraliaIndependent Schools of Western Australia/EdithCowan University❙ Literacy Assessment for Development andResearch of Focused Intervention for Early Literacy
  30. 30. Development ProjectLeadership Centre WA❙ Evaluation of New Direction in School LeadershipUniversity of Western Australia❙ UWA Course Structures Review1408-09Staff publicationsBOOKS AND REPORTSBOOKS AND REPORTSAinley, J., Kos, J, & Nicholas M. (2008). Participation inScience, Mathematics and Technology in AustralianEducation . (ACER Research Monograph No. 63),Camberwell, Vic.: ACER.Anderson, M. & Cawsey, C. (2008). Learning forLeadership, Camberwell, Vic.: ACER Press.Coates, H. (2009). Engaging students for success:Australasian Student Engagement Report, AustralasianSurvey of Student Engagement. Camberwell, Vic.:ACER.Coates, H. & Edwards, D. (2009). The 2008 graduatepathways survey: graduates education andemployment outcomes five years after completionof a bachelor degree at an Australian university.Camberwell, Vic.: ACER.
  31. 31. Coates, H. & Rothman, S. (2008). Participation in VET inSchools (LSAY Briefing; No.15). Camberwell, Vic.:ACER.Curtis, D. & McMillan, J. (2008). School Non-completers:Profiles and Initial Destinations (LSAY ResearchReport; No. 54). Camberwell, Vic.: ACER.Curtis, D. (2008). VET Pathways taken by School Leavers(LSAY Research Report; No. 52), Camberwell, Vic.:ACER.Dinham, S. & Rowe, K. (2009). Teaching and learning inmiddle schooling: a review of the literature. Wellington.New Zealand Ministry of Education.Dowling, A. (2008). Output Measurement in Education .Camberwell, Vic.: ACER.Edwards, D. & Smith, T.F. (2008). Supply, demandand approaches to employment by people withpostgraduate research qualifications in science andmathematics: Final Report. Canberra: AustralianGovernment Department of Education,Employment and Workplace Relations.Edwards, D. & Smith, T.F. (2008). Supply, demandand approaches to employment by people withpostgraduate research qualifications in science andmathematics: Case Studies . Canberra, AustralianGovernment Department of Education,
  32. 32. Employment and Workplace Relations.Edwards, D. & Smith, T.F. (2008). Supply, demandand approaches to employment by people withpostgraduate research qualifications in science andmathematics: Literature Review and Data Analysis.Canberra: Australian Government Department ofEducation, Employment and Workplace Relations.Nicolas Hérault, N., Marks, G., Wu, W. & Zakirova,R. (2009). The Employment Outcomes of Youthentering the Labour Market, Canberra: AustralianGovernment Department of Education,Employment and Workplace Relations under theSocial Policy Research Services Agreement.Ingvarson, L.C., Kleinhenz, E. and Wikinson, J. (2008).Research on Performance Pay for Teachers .Camberwell, Vic.: ACER Press.Lietz, P. (2009). Variance in performance between studentswithin schools and between schools, Canberra:Commonwealth of Australia.Lietz, P., Wagemaker, H., Neuschmidt, O., & Hencke, J.(Eds.) (2008). Issues in the Middle East North AfricaRegion: Outcomes of the IEA Arab Region TrainingSeminar Series 2006/2007. Hamburg: InternationalAssociation for the Evaluation of EducationalAchievement (IEA).
  33. 33. Lonsdale, M. (2008). Schools First: Final Report,Camberwell, Vic.: ACER.Marks, G. (2009). The Occupations and Earnings of YoungAustralians: The Role of Education and Training (LSAYResearch Report: No 55). Camberwell, Vic.: ACER.Masters, G. (2009). A shared challenge: improving literacy,numeracy and science learning in Queensland primaryschools , Brisbane: Government of Queensland.Masters, G., Rowley, G., Ainley, J., & Khoo, S.K (2009).Reporting and Comparing School Performances,Melbourne: MCEETYA.Matters, G.N & Curtis, D.D (2008). A Study into theAssessment and Reporting of Employability Skills ofSenior Secondary Students . Canberra: Department ofEducation, Employment and Workplace Relations.Burke, G., Keating, J., Vickers, A., McKenzie, P., Bateman,A., Fearnside, R. & Shah, C. (2009). MappingQualifications Frameworks across APEC Economies .A report prepared for Asia Pacific EconomicCooperation. Melbourne: Centre for the Economicsof Education and Training.McKenzie, P., Horne, R., Dowling, A. & Beavis, A. (2008).Harnessing Educational Cooperation in the East AsiaSummit for Regional Competitiveness and CommunityBuilding. Jakarta: ASEAN-Australia Development
  34. 34. Cooperation Programme.Mellor, S. (2009). National Assessment Program - Civicsand Citizenship: Years 6 and 10 Report 2007.Melbourne: MCEETYA.15Purdie, N., Frigo, T., Ozolins, C., Noblett, G., Thieberger,N. & Sharp, J. (2008). Indigenous Languages Programsin Australian Schools - A Way Forward . Canberra:Department of Education, Employment andWorkplace Relations.Rothman, S., Hillman, K., McKenzie, P., & Marks, G. (2009).The On Track Survey 2008: The Destinations of SchoolLeavers in Victoria . Melbourne: Department ofEducation and Early Childhood Development.Rothman, S. (2009). Estimating Attrition Bias in the Year 9Cohorts of the Longitudinal Surveys of Australian Youth(LSAY Technical Report No. 48). Camberwell, Vic.:ACER.Rothman, S., & Hillman, K. (2008). Career Advice inAustralian Secondary Schools: Use and Usefulness(LSAY Research Report; No 53). Camberwell, Vic.:ACER.Schulz, W., Fraillon, J., Ainley, J., Losito, B. & Kerr, D. (2008).International Civic and Citizenship Education Study.Assessment Framework . Amsterdam: IEA.
  35. 35. Tatto, M.T., Schwille, J., Senk, S., Ingvarson, L.C., Peck,R., & Rowley, G. (2009). Teacher Education andDevelopment Study in Mathematics (TEDS-M).Policy, Practice and Readiness to Teach Primary andSecondary Mathematics. Conceptual Framework.Amsterdam: International Association for theEvaluation of Educational Achievement (IEA).Thomson, S., Wernert, N., Underwood, C. & Nicholas, M(2008). Highlights from TIMSS 2007 from Australia’sperspective. Camberwell, Vic.: ACER.Thomson, S., Wernert, N., Underwood, C. & Nicholas,M (2008). TIMSS 2007: Taking a closer look atmathematics and science in Australia. Camberwell,Vic.: ACER.Wilkinson, J., Milgate, G. (2009). Studies of Asia in Year 12,Melbourne: Asia Education Foundation.CHAPTERS IN BOOKSAinley, J. (2009). National policies and practices on ICTin education : Australia. In T. Plomp et al (Eds) Cross-national information and communicationtechnology:policies and practices in education . Charlotte, NC:Information Age Publishing, pp 67-82.Coates, H. (2008). What’s the difference? : modelsfor assessing quality and value added in highereducation. In AUQF2008: Quality & standards inhigher education : making a difference. Canberra:
  36. 36. AUQF.Cresswell, J.C. (2009). PISA Science 2006: InternationalResults. In R.W. Bybee and B.J. McCrae (eds), PISAScience 2006: Implications for Science Teachers andTeaching, NSTA Press, USA.Dinham, S. (2009). Leadership for Student Achievement.In Cranston, N. & Erlich, L. Australian schoolleadership today: Issues and trends . Bowen Hills,Queensland: Australian Academic Press.Dinham, S. (2009). The Relationship BetweenDistributed Leadership and Action Learning inSchools: A Case Study. In A. Harris (Ed) DistributedSchool Leadership: Different Perspectives. Dordrecht:Springer, pp 139-154.Ingvarson, L.C. (2009). Identificar e recompensar osbons professores na Austrália. O que aprendemos?Para onde vamos? ( Identifying and rewardingaccomplished teachers in Australia: What have welearned? Where are we going?) In Maria AssunçãoFlores Fernandes (Ed.), Avaliacao de Professoresnuma perspectiva internacional: sentidos e implicacoes.Porto: Areal Editores.Marks, G.N. (2009). The Influence of Cultural Capitalon Educational and early Labour Market Outcomesof Young People in Australia. In K. Robson & C.
  37. 37. Sanders (Eds) Quantifying Theory: Bourdieu’ . Springer.Marks, G. N., Cresswell, J. & Ainley, J. (2008). ExplainingSocioeconomic Inequalities in Student Achievement:The role of Home and School factors. In S. Gorard(Ed) Quantitative Research in Education. London:Sage.Meiers, M. (2009). Towards commonality in Englishcurriculum and assessment: Reflections andimplications. In C. Durrant, & K. Starr (Eds) Englishfor a new millennium: Leading change . AATE Interfaceseries, Australian Association for the Teaching ofEnglish.Searle, D. & Ainley, J. (2009). Students in a digital age :some implications of ICT for teaching and learning.In J. Voogt & G. Knezek (Eds) International handbookon information technology in primary and secondaryeducation . Heidelberg: Springer.Thomson, S. (2009). Teaching and learning science:PISA and the TIMSS Video Study. In R. W. Bybee &B. J. McCrae (Eds), PISA science 2006: Implicationsfor Science Teachers and Teaching . Arlington, Virginia:National Science Teachers Association Press.Turner, R (2009). PISA: An Introduction and Overview.In R. W. Bybee, & B. J. McCrae (Eds). PISA Science2006: Implications for Science Teachers and Teaching,
  38. 38. Arlington, Virginia: National Science TeachersAssociation Press.16REFEREED JOURNAL ARTICLESBirrell, B. & Edwards, D. (2009). The Bradley Review andaccess to higher education in Australia. AustralianUniversities Review , 51.1, p 4-13.Brown, G.T.L., Lake., R.I.E & Matters, G.N (2009).Assessment policy and practice effects on NewZealand and Queensland teachers’ conceptionsof teaching. Journal of Education for Teaching 35.1, p61-75.Coates, H. (2009). What’s the difference? A model formeasuring the value added by higher education inAustralia. Higher Education Management and Policy21.1 (2009): 69-88.Dossey, J., McCrone, S., Turner, R. and Lindquist, M.(2008). Mathematical Literacy and Learning in theAmericas, Canadian Journal of Science, Mathematicsand Technology Education, 8(2) , 140-152.Dowling, A. (2008). Unhelpfully complex andexceedingly opaque: Australia’s school fundingsystem. Australian Journal of Education, 52(2), Article4.Edwards, D. (2009). Keeping it local: geographic patterns
  39. 39. of university attendance. Australian UniversitiesReview 51.1 (2009): 61-70.Edwards, D. (2008). Increasing competition for universityand the challenge of access for government schoolstudents-case study. Australian Journal of Education,52(3), Article 6.Krause, K. & Coates, H. (2008). Students’ engagement infirst-year university. Assessment and Evaluation inHigher Education 33.5: 493-505.Marks, G. N (2009). Accounting for school-sectordifferences in university entrance performance.Australian Journal of Education, 53(1), Article 2.Marks, G. N. (2009). Social Consequences of theAustralian Higher Education Contribution Scheme(HECS), Higher Education, 57(1): 71-84.McCulla, N., Scott, C. & Dinham, S. (2009). Quietconversations in small circles: The role of voluntaryawards and distributive leadership in promotingteaching excellence in universities Unicorn OnlineRefereed Articles ORA 57 (2009): 3-22.McMillan, J., Beavis., A. & Jones, F.L (2009). The AUSEI06:A new socioeconomic index for Australia Journal ofSociology 45.2 (2009): 123-149.Schulz, W. & Fraillon, J. (2009). The IEA InternationalCivic and Citizenship Education Study (ICCS):
  40. 40. Design and Concept. CADMO, 17:1, 21-34.Schulz, W. & Fraillon, J. (2008). El Estudio Internacionalsobre Educación Cívica y Ciudadana (ICCS) de laIEA. Revista Internacional Magisterio , 36, 46-51.Scott, C. & Dinham, S. (2008). ‘Born not made: TheNativist myth and Teachers’ Thinking’ TeacherDevelopment ’, 12(2), pp. 115-124.Soucy McCrone, S. M., Dossey, J. A., Turner, R. andLindquist, M. M. (2008). Learning about Students’Mathematical Literacy from PISA 2003. MathematicsTeacher, 102 (1) pp. 34-39.Thomson, S. (2008). Examining the evidence fromTIMSS: Gender differences in Year 8 scienceachievement in Australia. Studies in EducationalEvaluation , 34(2), 73-81.OTHER PERIODICALSAinley, J. (2009). A Snapshot of Mathematics inAustralian Schools. Learning Matters. Jan. 2009.Anderson, M. (2008). Learning for leadership, Teacher ,194, September, 10-15.Anderson, M. & Coates, H. (2009). Balancing act :challenges for educational leadership. ProfessionalEducator Mar. 2009: 32-37.Beavis, A. (2009) Review of School Choice: How parentsnegotiate the new school market in Australia by Craig
  41. 41. Campbell, Teacher , 202, June/July, 64.Coates, H. (2009). Engaging College Communities: Theimpact of residential colleges in Australian highereducation (AUSSE Research Briefing Volume 4).Camberwell, Vic.: ACER.Cook, J. (2009). An even start, Teacher , 201, May, 44-47.Dinham, S. (2009). Leadership for Quality Learning:Current Research. Teaching Australia . Melbourne. Jun.2009.Dinham, S. & Rowe, K. (2009). Fantasy, Fashion and Factin Middle Schooling: A critique. Professional Voice Jan.2009: 19-24.Dinham, S. (2009). Review of We Did It Here:Inspirational stories of school improvement andclassroom change by Brin Best, Teacher , 202, June/July, p. 65.Filipi, A. & Lissonnet, S. (2008). Using wikis to createtests, Teacher , 194, September, 20-21.Ingvarson, L (2009). National Curriculum and NationalProfessional Standards: Potentially a PowerfulPartnership Centre for Strategic Education Apr. 2009:1-14.17Ingvarson, L. & Kleinhenz, K. (2008). Over the rainbow:a rewarding career structure. Teacher , 195, October,
  42. 42. 14-17.Lacey, K. & Anderson, M. (2009). Working together: Thecurrent state of co-principalship, Teacher , 201, May,58-61.McKenzie, P (2008). Leadership: is there a loomingshortage? Professional Educator Nov. 2008: 12-17.Purdie, N. (2008). Review of N. Harrison, Teaching andLearning in Indigenous Education. In Teacher , 195,October, 63.Scott, C. (2008). Boys and girls and stereotypes, Teacher ,195, October, 44-7.Scott, C. (2009). Talk and practice: The real story ofdialogic teaching’, Teacher , 198, February, 28-30.Thomson, S. (2009). Improving on average: A close lookat maths and science, Teacher , 200, April, 20-23.White, G. (2008). ICT trends in education, Teacher , 196,November.White, G. (2008). ICT trends in education II, Teacher ,197, December, 6-12.Wilkinson, J. (2009). Reaching their potential : what’sworking with Indigenous students, Teacher , 202,June/July, 52-55.18Directors’ reportThe Directors of the Australian Council for Educational Research Limited and controlled entities presentthe
  43. 43. following report together with the financial statements for the financial year ended 30 June 2009.DirectorsThe names of Directors in office at any time during or since the end of the financial year are:Directors Start date Finish dateBoard Meetingsduring the yearAudit CommitteeMeetings duringthe yearEligible toattendNumberattendedEligible toattendNumberattendedRobyn Baker, BSc MEd 4 4 4 4Brian Caldwell, BSc BEd MEd PhD 4 3 4 3Brian Croke, BA DipED DPhil Fellow,Australian Humanities Academy4 1 - -Anthony Mackay, BEc BEd MA 4 3 - -Geofferey Masters, BSc MEd PhDFACE4443Trish Mercer, PhD (History) 4 3 - -Paige Porter, BA MA PhD 4 3 4 3
  44. 44. Chris Robinson, Bachelor ofAgricultural Economics, Post GradDiploma of Social Security4 1 - -Sheldon Rothman, BA MAT MEd EdD 4 3 - -Geoff Scott, BA DipEd MEd EdDFACE4 4 - -Directors have been in office since the start of the financial year to the date of this report unlessotherwisestated.Company SecretaryMr Wayne J Dawes — Bachelor of Business, FCPA, ACIS, held the position of company secretary at theendof the financial year. Mr Dawes has been employed by the Australian Council for Educational ResearchLtdfor the past 16 years, performing a range of senior management roles. Mr Dawes was appointedcompanysecretary on 26 October 1993.Principal activities of the companyThe principal activities of the company during the financial year were educational research anddevelopment,publication and sale of educational and psychological books, tests and materials, and the provision ofassessment and educational services. During the financial year there was no significant change in thenatureof those activities.Result for the yearThe surplus for the group amounted to $ 3,676,239 (2008 Surplus $5,005,812). The surplus of theparentcompany was $3,487,037 (2008 Surplus $5,225,914).19
  45. 45. DividendsACER is a not for profit company and neither declares nor pays dividends. The company is prohibitedfromissuing dividends or options as per its constitution.Environmental issuesThe group’s operations are not regulated by any significant environmental regulation underCommonwealth,State or Territory law.Review of operationsDuring the year, the group continued to engage in its principal activities, the results of which aredisclosed inthe attached financial statements.Significant changes in state of affairsDuring the financial year there were no significant changes in the state of affairs of the company otherthanthose referred to in the accounts or notes thereto.After balance date eventsThere have been no matters or circumstances since the end of the financial year, which significantlyaffectthe operations of the company in future years.Directors’ indemnificationDuring the financial year the company paid a premium to insure each of the directors against liabilitiesforcosts and expenses incurred by them in defending any legal proceedings arising out of their conductwhileacting in the capacity of director of the company, other than conduct involving a wilful breach of duty inrelation to the company.Proceedings on behalf of company
  46. 46. No person has applied for leave of Court to bring proceedings on behalf of the company or intervene inany proceedings to which the company is a party for the purpose of taking responsibility on behalf ofthecompany for all or any part of these proceedings. The company was not a party to any such proceedingsduring the year.Auditors independenceA copy of the auditors independence declaration as required under section 307C of the Corporations Act2001 is set out on page 3.Signed in accordance with a resolution of the Directors.For and on behalf of the DirectorsDirector: Paige Porter Director: Geofferey MastersDate: 18 September 20092021Financial reportIncome statement (for the year ended 30 June 2009)Consolidated ParentNote2009$2008$2009$2008
  47. 47. $Revenue 2a59,823,175 55,618,740 57,896,455 54,614,809Other income 2b- 3,651,997 - 3,651,997Changes in inventories of finishedgoods and work in progress(449,991) (595,427) (449,991) (595,427)Purchases and consumables used(2,052,136) (1,753,931) (2,051,952) (1,753,896)Employee and contractor benefitsexpense(32,508,478) (31,249,600) (32,223,706) (31,234,663)Depreciation and amortisation(1,466,420) (1,476,806) (1,466,099) (1,476,765)Freight and cartage expense(710,249) (627,883) (709,854) (627,632)Advertising expense(193,298) (244,625) (193,298) (244,625)Computer expense(758,621) (671,483) (709,737) (655,852)Rent and occupancy expenses(788,693) (632,929) (761,401) (610,415)Consultancy expense(6,235,189) (7,096,787) (6,140,005) (6,768,768)
  48. 48. Printing and stationery expenses(1,876,054) (1,676,337) (1,875,900) (1,675,917)Royalty expense(362,667) (364,500) (362,667) (364,500)Repairs and maintenance expenses(377,596) (368,970) (374,483) (362,932)Travel expense(2,378,191) (2,028,532) (2,365,388) (2,017,054)Finance costs(920,999) (1,317,329) (920,999) (1,317,329)Other expenses(5,054,155) (4,182,236) (3,803,938) (3,335,117)Surplus before income tax 3,690,438 4,983,362 3,487,037 5,225,914Income tax expense (benefit) (14,199) 22,450 - -Surplus for the year 3,676,239 5,005,812 3,487,0375,225,914The accompanying notes form part of the financial statements.Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14522Balance sheet (as at 30 June 2009)Consolidated ParentNote2009$2008$2009
  49. 49. $2008$ASSETSCurrent assetsCash and cash equivalents410,622,599 5,911,681 9,472,331 5,408,082Trade and other receivables56,763,810 7,165,876 6,747,822 7,089,802Inventories62,405,728 2,281,367 2,405,728 2,281,367Financial assets7201,365 342,830 216,082 386,761Other assets85,250,661 4,249,523 5,238,976 4,209,795Total current assets 25,244,163 19,951,277 24,080,939 19,375,807Non-current assetsTrade and other receivables5- - 877,496 687,026
  50. 50. Financial assets720,087 85,707 20,087 85,707Property, plant and equipment929,106,884 30,989,212 29,105,785 30,987,866Total non-current assets 29,126,971 31,074,919 30,003,368 31,760,599TOTAL ASSETS 54,371,134 51,026,196 54,084,307 51,136,406LIABILITIESCurrent liabilitiesTrade and other payables108,314,880 7,118,493 8,053,209 7,081,759Short-term provisions124,682,691 4,222,269 4,678,856 4,220,974Total current liabilities 12,997,571 11,340,762 12,732,065 11,302,733Non-current liabilitiesFinancial liabilities1113,000,000 13,000,000 13,000,000 13,000,000Other long-term provisions12580,043 513,177 580,043 513,177Total non-current liabilities 13,580,043 13,513,177 13,580,043 13,513,177
  51. 51. TOTAL LIABILITIES 26,577,614 24,853,939 26,312,108 24,815,910NET ASSETS 27,793,520 26,172,257 27,772,199 26,320,496EQUITYReserves 134,524,849 6,329,825 4,516,324 6,301,658Retained earnings 23,268,671 19,842,432 23,255,875 20,018,838TOTAL EQUITY 27,793,520 26,172,257 27,772,199 26,320,496The accompanying notes form part of the financial statements.Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14523Statement of changes in equity (for the year ended 30 June 2009)2009 ParentAccumulatedsurpluses$Assetrevaluationreserve$Foundation forEducationalResearch Fund$Foreigncurrency
  52. 52. translationreserve$HedgeReserve$Total$Balance as at beginning of year 20,018,838 5,324,840 548,280 - 428,538 26,320,496Net surplus (deficit) attributableto members of the parent entity3,487,037 - - - - 3,487,037Transfers to and from reserves - Asset revaluation reserve - (1,654,502) - - - (1,654,502) - Foundation for EducationalResearch Fund(250,000) - 250,000 - - - - Hedge Reserve - - - - (380,832) (380,832)Balance at 30 June 2009 23,255,875 3,670,338 798,280 - 47,706 27,772,1992008 ParentAccumulatedsurpluses$Assetrevaluationreserve
  53. 53. $Foundation forEducationalResearch Fund$Foreigncurrencytranslationreserve$HedgeReserve$Total$Balance as at beginning of year 15,042,924 5,324,840 298,280 - 1,238,157 21,904,201Net surplus (deficit) attributableto members of the parent entity5,225,914 - - - - 5,225,914Transfers to and from reserves - Foundation for EducationalResearch Fund(250,000) - 250,000 - - - - Hedge Reserve - - - - (809,619) (809,619)Balance at 30 June 2008 20,018,838 5,324,840 548,280 - 428,538 26,320,496The accompanying notes form part of the financial statements.
  54. 54. Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14524Statement of changes in equity (for the year ended 30 June 2009)2009 ConsolidatedAccumulatedsurpluses$Assetrevaluationreserve$Foundation forEducationalResearch Fund$Foreigncurrencytranslationreserve$HedgeReserve$Total$
  55. 55. Balance as at beginning of year 19,842,432 5,324,840 548,280 28,167 428,538 26,172,257Net surplus (deficit) 3,676,239 - - - - 3,676,239Transfers to and from reserves - Asset revaluation reserve - (1,654,502) - - - (1,654,502) - Foundation for EducationalResearch Fund(250,000) - 250,000 - - - - Foreign currency translationreserve- - - (19,642) - (19,642) - Hedge Reserve - - - - (380,832) (380,832)Balance at 30 June 2009 23,268,671 3,670,338 798,280 8,525 47,706 27,793,5202008 ConsolidatedAccumulatedsurpluses$Assetrevaluationreserve$Foundation forEducationalResearch Fund$Foreigncurrency
  56. 56. translationreserve$HedgeReserve$Total$Balance as at beginning of year 15,086,620 5,324,840 298,280 - 1,238,157 21,947,897Net surplus (deficit) 5,005,812 - - - - 5,005,812Transfers to and from reserves - Foundation for EducationalResearch Fund(250,000) - 250,000 - - - - Foreign currency translationreserve- - - 28,167 - 28,167 - Hedge Reserve - - - - (809,619) (809,619)Balance at 30 June 2008 19,842,432 5,324,840 548,280 28,167 428,538 26,172,257The accompanying notes form part of the financial statements.Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14525Statement of cash flows (for the year ended 30 June 2009)Consolidated ParentNote2009
  57. 57. $2008$2009$2008$Cash from operating activities:Receipts from customers 64,609,512 57,171,944 62,522,838 56,042,431Payments to suppliers and employees (57,865,700) (56,254,315) (56,465,360) (54,942,008)Interest received 132,854 177,196 129,033 163,730Interest paid (912,951) (1,317,329) (912,951) (1,302,176)Income taxes paid (14,199) 22,450 - -Net cash provided by (used in) operating activities 19 5,949,516(200,054) 5,273,560 (38,023)Cash flows from investing activities:Proceeds from sale of plant and equipment - 9,217,145 - 9,400,000Acquisition of property, plant and equipment (1,238,598) (4,798,500) (1,238,523) (4,797,107)Loans to related parties – proceeds fromrepayments (payments made) - - 29,212 (544,692)Net cash provided by (used in) investing activities (1,238,598) 4,418,645 (1,209,311) 4,058,201Cash flows from financing activities:Proceeds from (repayment of) other borrowings - (4,835,187) - (4,835,187)Net cash provided by (used in) financing activities - (4,835,187) - (4,835,187)Net increase (decreases) in cash held 4,710,918 (616,596) 4,064,249 (815,009)Cash at beginning of financial year 5,911,681 6,528,277 5,408,082 6,223,091Cash at end of financial year 4 10,622,599 5,911,681 9,472,331 5,408,082
  58. 58. The accompanying notes form part of the financial statements.Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14526Notes to the financial statements (for the year ended 30 June 2009)1 Statement of significant accounting policies1a General informationThe financial report includes the consolidated financial statements and notes of Australian Councilfor Educational Research Ltd and Controlled Entities (the Group) and the separate financialstatements and notes of Australian Council for Educational Research Ltd as an individual parententity (Parent).1b Basis of preparationThe financial report is a general purpose financial report that has been prepared in accordancewith Australian Accounting Standards, Australian Accounting Interpretations, other authoritativepronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.Australian Accounting Standards set out accounting policies that the AASB has concluded wouldresult in a financial report containing relevant and reliable information about transactions, eventsand conditions to which they apply. The financial report complies with all Australian equivalents toInternational Financial Reporting Standards (IFRS) to the extent applicable to Australian not forprofit entities. Material accounting policies adopted in the preparation of this financial report arepresented below. They have been consistently applied unless otherwise stated.The financial report has been prepared on an accruals basis and is based on historical costsmodified, where applicable, by the measurement at fair value of selected non-current assets,financial assets and financial liabilities.1c Basis of consolidationA controlled entity is an entity over which Australian Council for Educational Research Ltd has the
  59. 59. power to govern the financial and operating policies so as to obtain benefits from its activities. Inassessing the power to govern, the existence and effect of holdings of actual and potential votingrights are considered.As at reporting date, the assets and liabilities of all controlled entities have been incorporatedinto the consolidated financial statements as well as their results for the year then ended. Wherecontrolled entities have entered (left) the consolidated group during the year, their operatingresults have been included (excluded) from the date control was obtained (ceased).A list of controlled entities is contained in Note 21 to the financial statements.All inter-group balances and transactions between entities in the the Group, including anyunrealised profits or losses, have been eliminated on consolidation. Accounting policies ofsubsidiaries have been changed where necessary to ensure consistency with those adopted by theparent entity.1d ComparativesWhen required by Accounting Standards, comparative figures have been adjusted to conform tochanges in presentation for the current financial year.Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14527Notes to the financial statements (for the year ended 30 June 2009)1 Statement of significant accounting policies continued1e Income taxesNo current or deferred income tax assets or liabilities have been raised by the company as it isexempt from income tax under Division 50 of the Income Tax Assessment Act.1f InventoriesInventories are measured at the lower of cost and net realisable value. The cost of manufacturedproducts includes direct materials, direct labour and an appropriate portion of variable and fixed
  60. 60. overheads. Overheads are applied on the basis of normal operating capacity. Costs are assignedon the basis of weighted average costs.1g Property, plant and equipmentEach class of property, plant and equipment is carried at cost or fair value as indicated less, whereapplicable, any accumulated depreciation and impairment losses.PropertyFreehold land and buildings are shown at their fair value (being the amount for which an assetcould be exchanged between knowledgeable willing parties in an arm’s length transaction), basedon periodic, but at least triennial, valuations by external independent valuers, less subsequentdepreciation for buildings.Increases in the carrying amount arising on revaluation of land and buildings are credited toa revaluation reserve in equity. Decreases that offset previous increases of the same asset arecharged against fair value reserves directly in equity; all other decreases are charged to the incomestatement.Any accumulated depreciation at the date of revaluation is eliminated against the gross carryingamount of the asset and the net amount is restated to the revalued amount of the asset.Plant and equipmentPlant and equipment are measured on the cost basis less depreciation and impairment losses.The carrying amount of plant and equipment is reviewed annually by directors to ensure it is notin excess of the recoverable amount from these assets. The recoverable amount is assessed onthe basis of the expected net cash flows that will be received from the asset’s employment andsubsequent disposal. The expected net cash flows have been discounted to their present values indetermining recoverable amounts.Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset,as appropriate, only when it is probable that future economic benefits associated with the item
  61. 61. will flow to the Group and the cost of the item can be measured reliably. All other repairs andmaintenance are charged to the income statement during the financial period in which they areincurred.Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14528Notes to the financial statements (for the year ended 30 June 2009)1 Statement of significant accounting policies continued1g Property, plant and equipment continuedDepreciationThe depreciable amount of all fixed assets including buildings and capitalised leased assets, butexcluding freehold land, is depreciated on a straight-line basis over the asset’s useful life to theGroup commencing from the time the asset is held ready for use. Leasehold improvements aredepreciated over the shorter of either the unexpired period of the lease or the estimated usefullives of the improvements.The depreciation rates used for each class of depreciable assets are:Class of Fixed AssetBuildings 2.5% - 10%Furniture, Fixtures and Fittings 25%Motor Vehicles 25%Computer Equipment 33%Computer Software 40%The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at eachbalance sheet date. An asset’s carrying amount is written down immediately to its recoverableamount if the asset’s carrying amount is greater than its estimated recoverable amount.Gains and losses on disposals are determined by comparing proceeds with the carrying amount.
  62. 62. These gains and losses are included in the income statement. When revalued assets are sold,amounts included in the revaluation reserve relating to that asset are transferred to retainedearnings.1h Cash and cash equivalentsCash and cash equivalents include cash on hand, deposits held at call with banks, other short-termhighly liquid investments with original maturities of three months or less, and bank overdrafts.Bank overdrafts are shown within short-term borrowings in current liabilities on the balance sheet.1i Impairment of assetsAt each reporting date, the Group reviews the carrying values of its tangible and intangible assetsto determine whether there is any indication that those assets have been impaired. If such anindication exists, the recoverable amount of the asset, being the higher of the asset’s fair value lesscosts to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’scarrying value over its recoverable amount is expensed to the income statement.Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14529Notes to the financial statements (for the year ended 30 June 2009)1 Statement of significant accounting policies continued1j Financial instrumentsRecognition and initial measurementFinancial instruments, incorporating financial assets and financial liabilities, are recognised when theentity becomes a party to the contractual provisions of the instruments. Trade date accountingis adopted for financial assets that are delivered within timeframes established by marketplaceconvention.Financial instruments are initially measured at fair value plus transactions costs where theinstrument is not classified as at fair value through profit or loss. Transaction costs related
  63. 63. to instruments classified as at fair value through profit or loss are expensed to profit or lossimmediately. Financial instruments are classified and measured as set out below.DerecognitionFinancial assets are derecognised where the contractual rights to receipt of cash flows expiresor the asset is transferred to another party whereby the entity no longer has any significantcontinuing involvement in the risks and benefits associated with the asset. Financial liabilitiesare derecognised where the related obligations are either discharged, cancelled or expire. Thedifference between the carrying value of the financial liability extinguished or transferred toanother party and the fair value of consideration paid, including the transfer of non-cash assets orliabilities assumed is recognised in profit or loss.Classification and subsequent measurementFinance instruments are subsequently measured at either of fair value, amortised cost using theeffective interest rate method, or cost. Fair value represents the amount for which an asset couldbe exchanged or a liability settled, between knowledgeable, willing parties. Where available, quotedprices in an active market are used to determine fair value. In other circumstances, valuationtechniques are adopted.Amortised cost is calculated as the amount at which the financial asset or financial liabilityis measured at initial recognition; less principal repayments; plus or minus the cumulativeamortisation of the difference, if any, between the amount initially recognised and the maturityamount calculated using the effective interest method; and less any reduction for impairment.The effective interest method is used to allocate interest income or interest expense overthe relevant period and is equivalent to the rate that exactly discounts estimated future cashpayments or receipts (including fees, transaction costs and other premiums or discounts) throughthe expected life (or when this cannot be reliably predicted, the contractual term) of the financialinstrument to the net carrying amount of the financial asset or financial liability. Revisions to
  64. 64. expected future net cash flows will necessitate an adjustment to the carrying value with aconsequential recognition of an income or expense in profit or loss.The Group does not designate any interests in subsidiaries, associates or joint venture entitiesas being subject to the requirements of accounting standards specifically applicable to financialinstruments.Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14530Notes to the financial statements (for the year ended 30 June 2009)1 Statement of significant accounting policies continued1j Financial instruments continued(i) Financial assets at fair value through profit or loss Financial assets are classified at fair value through profit or loss when they are held fortrading for the purpose of short -term profit taking, where they are derivatives not heldfor hedging purposes, or designated as such to avoid an accounting mismatch or to enableperformance evaluation where a group of financial assets is managed by key managementpersonnel on a fair value basis in accordance with a documented risk management orinvestment strategy. Realised and unrealised gains and losses arising from changes in fairvalue are included in profit or loss in the period in which they arise.(ii) Loans and receivables Loans and receivables are non -derivative financial assets with fixed or determinablepayments that are not quoted in an active market and are subsequently measured atamortised cost using the effective interest rate method.(iii) Held -to -maturity investments Held -to -maturity investments are non-derivative financial assets that have fixed maturitiesand fixed or determinable payments, and it is the group’s intention to hold these
  65. 65. investments to maturity. They are subsequently measured at amortised cost using theeffective interest rate method.(iv) Available-for-sale financial assets Available-for-sale financial assets are non -derivative financial assets that are eitherdesignated as such or that are not classified in any of the other categories. They compriseinvestments in the equity of other entities where there is neither a fixed maturity norfixed or determinable payments.(v) Financial liabilities Non -derivative financial liabilities (excluding financial guarantees) are subsequentlymeasured at amortised cost using the effect interest rate method.Fair valueFair value is determined based on current bid prices for all quoted investments. Valuationtechniques are applied to determine fair value for all unlisted securities, including recent arm’slength transactions, reference to similar instruments and option pricing models.ImpairmentAt each reporting date, the Group assess whether there is objective evidence that a financialinstrument has been impaired. In the case of available-for-sale financial instruments, a prolongeddecline in the value of the instrument is considered to determine whether an impairment hasarisen. Impairment losses are recognised in the income statement.Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14531Notes to the financial statements (for the year ended 30 June 2009)1 Statement of significant accounting policies continued1k Employee benefitsProvision is made for the company’s liability for employee benefits arising from services rendered
  66. 66. by employees to balance date. Employee benefits that are expected to be settled within one yearhave been measured at the amounts expected to be paid when the liability is settled. Employeebenefits payable later than one year have been measured at present value of the estimatedfuture cash outflows to be made for those benefits. These cashflows are discounted using marketyields on national government bonds with terms to maturity that match the expected timing ofcashflows. Contributions are made by the company to an employee superannuation fund and arecharged as expenses when incurred.1l BorrowingsBorrowing costs directly attributable to the acquisition, construction or production of assets thatnecessarily take a substantial period of time to prepare for their intended use or sale, are addedto the cost of those assets, until such time as the assets are substantially ready for their intendeduse or sale.All other borrowing costs are recognised in the income statement in the period in which they areincurred.1m RevenueRevenue from the sale of goods is recognised upon the delivery of goods to customers.Interest revenue is recognised on proportional basis taking account the interest rates applicable tothe financial assets.Project work in progress is valued at cost, plus profit recognised to date less any provision foranticipated future losses. Costs include both variable and fixed costs relating to specific contracts,when those costs that are attributable to the contract activity in general and that can be allocatedon a reasonable basis.Project profits are recognised over the life of the project measured using the proportion of costsincurred to date as compared to expected total costs. Where losses are anticipated they areprovided for in full. Project revenue has been recognised on the basis of the terms of the contract
  67. 67. adjusted for any variances or claims allowable under the contract.All revenue is stated net of the amount of goods and services tax (GST).1n Goods and Services Tax (GST)Revenues, expenses and assets are recognised net of the amount of GST, except where theamount of GST incurred is not recoverable from the Australian Taxation Office. In thesecircumstances the GST is recognised as part of the cost of acquisition of the asset or as part ofan item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.Cash flows are presented in the cash flow statement on a gross basis, except for the GSTcomponent of investing and financing activities, which are disclosed as operating cash flows.Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14532Notes to the financial statements (for the year ended 30 June 2009)1 Statement of significant accounting policies continued1o Rounding of amountsThe company has applied the relief available to it under ASIC Class Order 98/100 and accordingly,amounts in the financial report and directors’ report have been rounded off to the nearest $ 1.1p Foreign currency translationFunctional and presentation currencyThe functional currency of each group entity is measured using the currency of the primaryeconomic environment in which that entity operates. The consolidated financial statements arepresented in Australian dollars which is the parent entity’s functional and presentation currency.Transaction and balancesForeign currency transactions are translated into functional currency using the exchange ratesprevailing at the date of the transaction. Foreign currency monetary items are translated at theyear -end exchange rate. Non monetary items measured at historical cost continue to be carried
  68. 68. at the exchange rate at the date of the transaction. Non monetary items measured at fair valueare reported at the exchange rate at the date when fair values were determined.Exchange differences arising on the translation of monetary items are recognised in the incomestatement, except where deferred in equity as a qualifying cash flow or net investment hedge.Exchange differences arising on the translation of non -monetary items are recognised directly inequity to the extent that the gain or loss is directly recognised in equity, otherwise the exchangedifference is recognised in the income statement.Group companiesThe financial results and position of foreign operations whose functional currency is different fromthe group’s presentation currency are translated as follows:• assets and liabilities are translated at year-end exchange rates prevailing at that reportingdate;• income and expenses are translated at average exchange rates for the period; and• retained earnings are translated at the exchange rates prevailing at the date of thetransaction.Exchange differences arising on translation of foreign operations are transferred directly to thegroup’s foreign currency translation reserve in the balance sheet. These differences are recognisedin the income statement in the period in which the operation is disposed.1q Library additionsThe Group adopts the policy of charging all additions to the library directly to the profit and lossaccount in the year in which the expenditure is incurred.Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14533Notes to the financial statements (for the year ended 30 June 2009)1 Statement of significant accounting policies continued
  69. 69. 1r Critical accounting estimates and judgmentsThe directors evaluate estimates and judgments incorporated into the financial report basedon historical knowledge and best available current information. Estimates assume a reasonableexpectation of future events and based on current trends and economic data, obtained bothexternally and within the Group.Key estimates — ImpairmentThe group assesses impairment at each reporting date by evaluating conditions specific to thegroup that may lead to impairment of assets. Where an impairment trigger exists, the recoverableamount of the asset is determined. Value-in -use calculations performed in assessing recoverableamounts incorporate a number of key estimates.Key judgments — Doubtful debts provisionThe directors believe that the doubtful debts provision is adequate to cover any impairment ofreceivables as at 30 June 2009.Key judgments — Project surplusesIncluded in the total surplus for the year ended 30 June 2009 was amounts relating to projectsurpluses recognised. The directors have judged that these project surpluses should be recognisedover the life of the project measured using the proportion of cost incurred to date as comparedto expected total costs. The directors also use estimated costs to complete the project toestimate the surplus or deficit recognised each financial year.Key judgements - Useful lives of property, plant and equipmentProperty, plant and equipment are depreciated over their useful life and the depreciation rates areassessed when the assets are acquired.1s New accounting standards for application in future periodsThe AASB has issued new, revised and amended standards and interpretations that havemandatory application dates for future reporting periods. The company has decided against early
  70. 70. adoption of these standards. A discussion of those future requirements and their impact on thecompany is as follows:• AASB 2008-11: Amendments to Australian Accounting Standard — Business Combinationsamong Not -for-Profit Entities (applicable to annual reporting periods beginning on or after1 July 2009). These amendments make the requirements in AASB 3: Business Combinationsapplicable to business combinations among not -for-profit entities (other than restructuresof local governments) that are not commonly controlled, and to include specific recognition,measurement and disclosure requirements in AASB 3 for restructures of local governments.Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14534Notes to the financial statements (for the year ended 30 June 2009)1 Statement of significant accounting policies continued1s New accounting standards for application in future periods continued• AASB 101: Presentation of Financial Statements, AASB 2007-8: Amendments to AustralianAccounting Standards arising from AASB 101, and AASB 2007-10: Further Amendments toAustralian Accounting Standards arising from AASB 101 (all applicable to annual reportingperiods commencing from 1 January 2009). The revised AASB 101 and amendments supersedethe previous AASB 101 and redefines the composition of financial statements includingthe inclusion of a statement of comprehensive income. There will be no measurement orrecognition impact on the company. If an entity has made a prior period adjustment orreclassification, a third balance sheet as at the beginning of the comparative period will berequired.• AASB 123: Borrowing Costs and AASB 2007-6: Amendments to Australian AccountingStandards arising from AASB 123 [AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 andAASB 138 and Interpretations 1 and 12] (applicable for annual reporting periods commencing
  71. 71. from 1 January 2009). The revised AASB 123 has removed the option to expense all borrowingcosts and will therefore require the capitalisation of all borrowing costs directly attributable tothe acquisition, construction or production of a qualifying asset. Management has determinedthat there will be no effect on the company as a policy of capitalising qualifying borrowing costshas been maintained by the company.• AASB 2008-2: Amendments to Australian Accounting Standards — Puttable FinancialInstruments and Obligations arising on Liquidation [AASB 7, AASB 101, AASB 132 and AASB139 and Interpretation 2] (applicable for annual reporting periods commencing from 1 January2009). These amendments introduce an exception to the definition of a financial liability toclassify as equity instruments certain puttable financial instruments and certain other financialinstruments that impose an obligation to deliver a pro-rata share of net assets only uponliquidation.• AASB 2008-5: Amendments to Australian Accounting Standards arising from the AnnualImprovements Project (July 2008) (AASB 2008 -5) and AASB 2008-6: Further Amendmentsto Australian Accounting Standards arising from the Annual Improvements Project (July 2008)(AASB 2008 -6) detail numerous non-urgent but necessary changes to accounting standardsarising from the IASB’s annual improvements project. No changes are expected to materiallyaffect the company.• AASB 2008-8: Amendments to Australian Accounting Standards — Eligible Hedged Items[AASB 139] (applicable for annual reporting periods commencing from 1 July 2009). Thisamendment clarifies how the principles that determine whether a hedged risk or portion ofcash flows is eligible for designation as a hedged item should be applied in particular situationsand is not expected to materially affect the company.• AASB 2008-13: Amendments to Australian Accounting Standards arising from AASBInterpretation 17 — Distributions of Non -cash Assets to Owners [AASB 5 and AASB 110]
  72. 72. (applicable for annual reporting periods commencing from 1 July 2009). This amendmentrequires that non -current assets held for distribution to owners to be measured at the lower ofcarrying value and fair value less costs to distribute.Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14535Notes to the financial statements (for the year ended 30 June 2009)1 Statement of significant accounting policies continued• AASB Interpretation 16: Hedges of a Net Investment in a Foreign Operation (applicable forannual reporting periods commencing from 1 October 2008). Interpretation 16 applies toentities that hedge foreign currency risk arising from net investments in foreign operationsand that want to adopt hedge accounting. The interpretation provides clarifying guidance onseveral issues in accounting for the hedge of a net investment in a foreign operation and is notexpected to impact the company.• AASB Interpretation 17: Distributions of Non -cash Assets to Owners (applicable for annualreporting periods commencing from 1 July 2009). This guidance applies prospectively only andclarifies that non -cash dividends payable should be measured at the fair value of the net assetsto be distributed where the difference between the fair value and carrying value of the assets isrecognised in profit or loss.The company does not anticipate early adoption of any of the above reporting requirements anddoes not expect them to have any material effect on the company’s financial statements.Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14536Notes to the financial statements (for the year ended 30 June 2009)2 RevenueConsolidated Parent
  73. 73. Note2009$2008$2009$2008$2a Revenue- sale of goods 8,216,079 8,128,238 8,216,079 8,128,238- services revenue 50,633,777 46,462,531 48,710,879 45,472,065- royalties 489,107 419,587 489,107 419,587- rental income 351,358 431,189 351,358 431,189- interest received 2(c) 132,854 177,196 129,033 163,730Total Revenue 59,823,175 55,618,740 57,896,455 54,614,8092b Other income- foreign exchange gain - 259,124 - 259,124- gain on sale of property, plant and equipment - 3,392,872 - 3,392,872Other Income - 3,651,997 - 3,651,9972c Interest revenue breakup- Interest revenue from: other persons 132,854 177,196 129,033 163,730Total interest revenue 132,854 177,196 129,033 163,730Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14537
  74. 74. Notes to the financial statements (for the year ended 30 June 2009)3 Profit for the yearConsolidated Parent2009$2008$2009$2008$Expenses from ordinary activitiesDepreciation of property, plant and equipment 1,466,420 1,476,806 1,466,099 1,476,765Cost of sales 2,502,127 2,349,358 2,501,943 2,349,323Finance costs 920,999 1,317,329 920,999 1,317,329Bad and doubtful debts expense /(Bad debts recovered)25,432 (1,302) 25,432 (1,302)Foreign exchange losses 167,578 (259,124) 167,578 (259,124)Remuneration of the auditor of the parent entityfor:- Auditing or reviewing the financial report 45,600 42,000 45,600 42,000- Other services 15,872 12,080 15,872 12,080Remuneration of other auditors ofsubsidiaries for:
  75. 75. - Auditing or reviewing the financial report 15,134 23,528 - -Rental expense on operating leases 785,155632,929 757,863 610,415Significant revenue and expensesThe following significant revenue andexpense items are relevant to explainingthe financial performance:Gain on sale of property, plant andequipment – 347 Camberwell Rd- 3,392,872 - 3,392,872Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14538Notes to the financial statements (for the year ended 30 June 2009)4 Cash and cash equivalentsConsolidated Parent2009$2008$2009$2008$Cash on hand 5,513 2,395 5,513 2,395Cash at bank 10,617,086 5,909,286 9,466,818 5,405,68710,622,599 5,911,681 9,472,331 5,408,0825 Trade and other receivables
  76. 76. CURRENTTrade receivables 6,938,810 7,315,876 6,856,140 7,222,223Provision for impairment of receivables (175,000) (150,000) (175,000) (150,000)6,763,810 7,165,876 6,681,140 7,072,223Amounts receivable from wholly-ownedsubsidiaries- - 66,682 17,5796,763,810 7,165,876 6,747,822 7,089,802NON-CURRENTAmounts receivable from wholly-ownedsubsidiaries- - 877,496 687,026Test Grid (Aust) Pty Ltd - Loan account 927,458 927,458 927,458 927,458Provision for impairment (927,458) (927,458) (927,458) (927,458)- - 877,496 687,0265a Provision for impairment of receivablesCurrent trade and term receivables are generally on 30 day terms, depending on the underlying termsof the contract. Non current trade receivables are assessed for recoverability based on the underlyingterms of the contract. A provision for impairment is recognised when there is an objective evidencethat an individual trade or term receivable is impaired. These amounts have been included in the otherexpenses item in the income statement.Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14539Notes to the financial statements (for the year ended 30 June 2009)5a Provision for impairment of receivables continued
  77. 77. Movement in provision for impairment of receivables is as follows:2009 ConsolidatedOpeningbalance$Charge forthe year$Amountswritten off$Closingbalance2009$Current trade receivables 150,000 25,000 - 175,000Non-current associated companies 927,458 - - 927,4581,077,458 25,000 - 1,102,458ParentOpeningbalance$Charge forthe year$
  78. 78. Amountswritten off$Closingbalance2009$Current trade receivables 150,000 25,000 - 175,000Non-current associated companies 927,458 - - 927,4581,077,458 25,000 - 1,102,4582008 ConsolidatedOpeningbalance$Charge forthe year$Amountswritten off$Closingbalance2008$Current trade receivables 125,000 25,000 - 150,000
  79. 79. Non-current associated companies 927,458 - - 927,4581,052,458 25,000 - 1,077,458Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14540Notes to the financial statements (for the year ended 30 June 2009)5 Trade and other receivables continued5a Provision for impairment of receivables continuedParentOpeningbalance$Charge forthe year$Amountswritten off$Closingbalance2008$Current trade receivables 125,000 25,000 - 150,000Non-current associated companies 927,458 - - 927,4581,052,458 25,000 - 1,077,4585b Aged analysis
  80. 80. The ageing analysis of receivables is as follows:Consolidated Parent2009$2008$2009$2008$0–30 days 5,965,856 5,490,625 5,883,186 5,323,49031–60 days 797,954 1,348,390 797,954 1,348,39031–60 days (considered impaired) 10,529 - 10,529 -61–90 days (past due not impaired) - 133,577 -133,57761–90 days (considered impaired) 80,292 - 80,292 -91+ days (past due not impaired) - 193,284 944,178193,28491+ days (considered impaired) 1,011,637 1,077,458 1,011,637 150,0007,866,268 8,243,334 8,727,776 7,148,741Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 14541Notes to the financial statements (for the year ended 30 June 2009)6 InventoriesConsolidated ParentNote2009$
  81. 81. 2008$2009$2008$CURRENTAt CostWork in progress 338,406 532,036 338,406 532,036Finished goods 1,715,310 1,629,575 1,715,310 1,629,5752,053,716 2,161,611 2,053,716 2,161,611At net realisable valueFinished goods 352,012 119,756 352,012 119,7562,405,728 2,281,367 2,405,728 2,281,3677 Financial assets7aAvailable for sale financial assets 7b - - 14,717 43,931Held -to -maturity financial assets 7c 173,746 - 173,746 -Derivative financial assets 7d 47,706 428,53747,706 428,537221,452 428,537 236,169 472,468Less non-current portion (20,087) (85,707) (20,087) (85,707)Current portion 201,365 342,830 216,082 386,7617b Available-for-sale financials assetscomprise:Unlisted investments, at costshares in controlled entities
  82. 82. - - 14,717 43,931- - 14,717 43,931Available-for-sale financial assets comprise investments in the ordinary issued capital of various entities.There are no fixed returns or fixed maturity date attached to these investments.7c Held -to -maturity investmentscomprise:Fixed interest securities 173,746 - 173,746 -173,746 - 173,746 -Australian Council for EducationalResearch Ltd and Controlled Entities ABN 19 004 398 14542Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 145Notes to the financial statements (for the year ended 30 June 2009)7 Financial assets continuedConsolidated ParentNote2009$2008$2009$2008$7d Derivative financial assets comprise:Foreign exchange contract - current 27,619 342,830 27,619 342,830Foreign exchange contract - non current 20,087 85,707 20,087 85,70747,706 428,537 47,706 428,537
  83. 83. Gains and losses arising from changes in the fair value of designated forward exchange contracts areinitially recognised directly in equity, and are separately included as a hedge reserve in the statementof changes in equity. At transaction date, amounts included in the hedge reserve are transferred fromequity and included in the acquisition cost of the asset.The statement of changes in equity includes transfers to and from the hedge reserve. Gains and lossesarising from changes in net fair value of interest rate swaps are recognised in the income statement inthe period in which they arise.8 Other assetsConsolidated Parent2009$2008$2009$2008$CURRENTPrepayments 289,954 278,618 289,954 276,824Work in progress 4,949,022 3,942,642 4,949,022 3,932,971Other receivables 11,685 28,263 - -5,250,661 4,249,523 5,238,976 4,209,79543Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 145Notes to the financial statements (for the year ended 30 June 2009)9 Property, plant and equipment
  84. 84. Consolidated Parent2009$2008$2009$2008$LAND AND BUILDINGSFreehold landAt fair value 10,650,000 10,650,000 10,650,000 10,650,000Total freehold land 10,650,000 10,650,000 10,650,000 10,650,000BuildingsAt fair value 17,986,280 19,404,998 17,986,280 19,404,998Less accumulated depreciation (1,136,276) (646,566) (1,136,276) (646,566)Total buildings 16,850,004 18,758,432 16,850,004 18,758,432Total land and buildings 9b 27,500,004 29,408,432 27,500,004 29,408,432PLANT AND EQUIPMENTPlant and equipmentAt cost 2,021,513 1,396,085 2,020,084 1,394,704Less accumulated depreciation (1,335,213) (955,207) (1,334,882) (955,171)Total plant and equipment 686,301 440,878 685,202 439,532Motor vehiclesAt cost 31,010 31,010 31,010 31,010

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