18 minute read
AMTIL FORUMS
from AMT FEB/MAR 2022
by AMTIL
Does education require a new approach?
We are teaching students to remember but not to understand. Insights into this trend – based on experiences by Roger La Salle – are explored here.
Let me preface this article by citing some astounding findings from personal experience. Some years ago I gave a lecture to final year electrical engineering students at one of our top-rated universities. Before the lecture I was told approximately 80 students were taking the course. When I entered the room, just four students - presumably the good ones - were present, as predicted by the lecturer. I commenced by asking the most simple question of these final year electrical engineering students: “What is the frequency of the mains power in Australia?”. NOBODY knew the answer. More recently I was exploring some innovations with a company CEO whose son was present and eager to participate. It turns out this delightful well-mannered lad had just completed second year in electrical engineering at a Canberra-based university. I also asked him the same question. Again, he did not know the answer. Further I probed: “I wonder how we could get hydrogen from water?”. The lad, I repeat a delightful well-mannered young man who informed me he was most keen on his studies, had no idea what I was talking about. I suggested to him electrolysis, again he had no idea what I was talking about, but then said, “Oh yes, I think we did that in first year but I don’t remember”. I recall saying to that lad, I don’t remember it either but I understand physics and electricity and the composition of water and with such an understanding it’s easy to “connect the dots”. Memory is not required, instead an understanding of the simple building blocks of nature, physics, electricity and science; that’s all that is needed. Therein lies the problem. We are teaching people to remember but not to understand. If the world worked like that, all we would need in our lives is Google. A platform that provides answers but not insights. Pictured are some graphs of our OECD education rating over past years of 15-yearold students, those now being primed for entrance to university. Note the downward trajectory - in particular Science in 2012. This is the measured outcome despite the multi-billions of dollars spent on education and the so- called “Building the Education Revolution” of the Rudd/Gillard years.
Trends in performance in reading, mathematics and science
A quote attributed to Julia Gillard in 2010 was: ".. already one of the most heavily scrutinised programs in the nation's history" and that “…the program was the ‘centrepiece’ of an economic stimulus package that helped to ‘ensure that a generation of Australians weren't consigned to months or years of joblessness’”. * Whilst we may lament the decline in education, it’s hard to blame the universities that have such low and ever-falling standards of students as input material. But that is not the end of the story. In recently speaking with a former lecturer he laments that the length of some courses have been increased, and not in final year, but in first year in an attempt to get students to the starting post to hopefully commence learning.Universities have simply reacted to the conditions presented by Governments going back decades. In essence universities had to become selfsufficient, largely self-funded businesses. The result has been a dramatic decline in standards to enable virtually any attendee to emerge with a degree. The call to action for universities today is to win students at any cost, preferably overseas full fee-paying students, some even with little or no English skills. Our educational institutions have become money-hungry student sausage factories. A colleague, now a retired lecturer, cites courses deliberately “dumbed down” to allow even the most incapable of students to win a degree. From my experience, this is the way I see the state of education in Australia today. Unless some change occurs universities will trash their reputation and in the longer term cease to be able to attract any wellintentioned overseas student, except perhaps for those seeking to acquire permanent residency status. Something I am told is widely sought after. So what’s the answer?
Perhaps a better question is what is not the answer; and that is have universities so conditioned to the need for self-funding to change their modus-operandi. I suspect the model and mindset is now too deeply embedded to change. What we need to do is create a complete new set of elite learning institutions, given a new title far removed from the word “university” that are tasked with teaching by understanding. By examining outcomes with students being required to “connect the dots” and solve problems to be rewarded with real and valued qualifications. Such qualifications would be a testament to a student’s ability to think, properly understand the world we live in and how it fits together. The principles of basic physics, engineering and the digital world are well understood. It’s from that understanding, not memory, that great strides forward can be made. References:
*Gillard, Julia (13 April 2010). "New taskforce an extra check on spending". The Australian. Sydney. Retrieved 16 April 2010.
Roger La Salle, trains people in innovation, commercialisation, marketing and the new emerging art of Opportunity Capture. Several of Roger’s own inventions are displayed in technology museums in Australia. In 2005 he was appointed "Chair of Innovation" at Queens University in Belfast. Roger created "Matrix Thinking"™, now used in more than 29 countries. www.innovationtraining.com.au Ph:03 9866 3272
Metal fabrication company fined $600,000 over burns to worker
The serious injury suffered by a young man in 2018 resulted in a heavy fine imposed on a sheet metal fabrication company in WA. Worksafe WA reports on the neglect, the failure to remedy the deficiencies and the resulting fine – one of the highest in the state.
A Welshpool sheet metal fabrication company has been handed one of the highest ever fines under WA’s workplace safety laws. PGQW Pty Ltd– previously known as Boxline Industries Pty Ltd – and its Manager Bradley Michael Shackleton have been fined a total of $650,000 over an incident in 2018 in which an employee suffered serious burns. PGQW pleaded guilty to failing to provide and maintain a safe work environment and, by that failure, causing serious harm to an employee. The company also pleaded guilty to two breaches of the Occupational Safety and Health Regulations 1996, namely failing to ensure the workplace had Material Safety Data Sheets readily available and failing to ensure there was adequate labelling of a hazardous substance. The fine The company was sentenced to a global fine of $600,000 and ordered to pay $2682.50 costs in the Perth Magistrates Court. Bradley Shackleton was fined $50,000 (and also ordered to pay $2682.50 costs) because the offences occurred with his consent and/or were attributable to his neglect while he was acting in the capacity of manager. In November 2018, a new and young employee of PGQW was tasked with orbital sanding around 30 metal sheets after applying kerosene to the sheets to produce a non-reflective and corrosion-resistant finish. The deficiencies
The employee was not provided with adequate induction, training or supervision to perform this task. Further, he was not provided with or wearing appropriate personal protective equipment (PPE) such as an apron, and was applying kerosene from an unlabelled plastic bottle which was splashing onto his clothing as the sheets were sanded. Because appropriate PPE was not provided, the same work shirt contaminated with kerosene was worn the following day. He was then tasked to weld shipping container locking handles, and was not instructed to remove the kerosene-splashed shirt he was wearing, nor was he provided with PPE. Soon after he started welding he felt his shirt get hot. When he lifted his welding mask he saw his shirt was on fire, and his pants subsequently caught fire. It took some time to locate a fire extinguisher, which was subsequently used to put out the flames. The injuries
The employee suffered burns to 30% of his body, including his face and ear, chest and arms, stomach and torso and both thighs. He has since undergone 13 surgeries and will need more in the future. At the time of the incident, PGQW had not established any safe systems of work for orbital sanding with kerosene or provided adequate induction, training or supervision to its employees. PGQW had received prior Improvement Notices for providing insufficient safety induction, training and adequate labelling of hazardous substances. An unfortunate example
WorkSafe WA Commissioner Darren Kavanagh said today the case was an unfortunate example of a workplace that did not provide any sort of protection for workers despite the fact that safe alternatives were available and simple to implement. “The young man involved was not properly advised of the risks associated with kerosene, including its hazardous and flammable properties, and was not told how much kerosene to use or instructed to wear any personal protective equipment,” Mr Kavanagh said. “Other companies have stopped using kerosene and were either sanding the sheets dry or using a non-flammable alternative, and this alternative was actually present in this workplace yet was not used. “The company had no system to ensure adequate induction for new employees, proper instruction and training was sadly lacking, supervision was effectively nonexistent and safe systems of work were not in place.
“This is despite the fact that WorkSafe inspectors had visited the premises on several occasions and had issued a large number of notices. “Mr Shackleton, who was managing the workplace, was aware of the lack of induction, training, supervision and PPE and failed to take any action to remedy the situation. “He consented to actions that contributed to the hazard and neglected to do anything to make the workplace safer for employees. “The level of penalty imposed on the company and the manager reflects the seriousness of the neglect involved and the fact that a young man has suffered terrible injuries.”
WorkSafe’s collaborative approach with industry, employers and the workforce is focused on influencing the commercial environment in Western Australia to ensure the achievement of best safety and health outcomes in the workplace. Its mission is to inspire employers and workers to ensure workplaces are safe through partnership, education and enforcement. Worksafe WA is a party to the Australian Work Health and Safety Strategy - a framework for the Commonwealth, state and territory governments, industry and unions, and other organisations, to work together and improve work health and safety. Ph: 1300 307 877 www.commerce.wa.gov.au/worksafe
Cash management forecasting is the key to a sustainable business
Failure to properly manage cash flows is the key reason for business liquidations and indeed within the first five years, most businesses will indeed cease to exist. Jeffrey Luckins explains.
Speaking as a company auditor, one of the key procedures we perform to conclude our opinion on financial reports and address the going concern basis, is devoted to determining whether the company can pay their debts as and when they fall due, which is a key solvency requirement for businesses looking forward one year ahead. Indeed, we take the forecast cash flows and we flex them to address locked-in commitments, potential (new) sources of cash inflows and any other potential movements of cash over the next year. We want to know in a worst-case scenario, how it is possible for the business to survive? All business owners should adopt the same philosophy that we do to survive and to thrive. Surprisingly, our observations are that cash flow management has a low priority in businesses or where it is implemented, the quality, timing and usefulness of the reporting is negligible at best. Here’s the problem: forecasting is an inexact science and even when it is conducted, the quality of information supporting assumptions in the modelling can be weak or inconsistent with reality where insufficient research and due diligence is conducted. The result being that business owners place low reliance and faith in forecasting, preferring to address cash management issues on an ad hoc as needs or weekly basis. Your first goal should be determining that the going concern basis is supportable to enable the business to survive in the short-term (ie the next year). This exercise may lead you to increase banking facilities, inject new equity, factor trade receivables, reduce shortterm commitments or realise assets to enable sufficient working capital to be employed in the business. Medium term thinking should be about investing in the business to build its critical mass and profitability - making a stronger business which is resilient to short-term term challenges. This forecasting may enable you to focus upon proactively implementing incentives and promotions which build a consistent loyal client base, improved decision-making around decisions to replace equipment or indeed to extend the life of existing equipment, acquiring a new business, negotiating with suppliers, and refinancing or communicating with your financiers. Forecasting tools
There is now more choice than ever for cashflow forecasting tools. Some software programs appear quite impressive in terms of their visual outputs, however the pros and cons of each solution can be difficult to weigh up. Many software tools have limitations, so it is important to ask the right questions before buying. For example, some forecasting software does not interface with popular accounting systems or exports only hardcoded numbers to other programs such as Microsoft Excel. When to use a spreadsheet for forecasting
Like other software programs, Microsoft Excel has limitations and potential issues when it comes to using it as your key forecasting tool. These issues include the risk of accidental errors and reusing templates that are no longer fit for purpose. However, the risk of errors can be minimised through well-designed spreadsheets with the appropriate checks and balances. Excel is still probably one of the best options for small-to-medium business in the following cases:
• Deciding on whether to finance a specific project.
Starting a new product line or taking on a new contract that requires investment. • Preparing for an acquisition. When preparing for an acquisition it is important to understand the cashflows of the target business to determine an appropriate offer price and to understand the combined value of your business and the target by modelling expected synergies. • Preparing for sale or a partial divestment. As the value of a business is based on its future cashflows, both the potential buyers and you will want to see and understand the forecast cashflows to determine an appropriate price.
• Deciding whether to replace equipment or extend the
life of existing equipment. Both scenarios can be modelled out over a specific period and compared based on net present value (NPV). • Valuing your business. Forecast cash inflows and outflows are a key input for a valuation based on the discounted cashflows (DCF) method of valuation. • Simple monthly, quarterly, or yearly forecasting.
Spreadsheets are very useful for setting up forecasting at regular intervals regardless of what interval you choose. The chosen intervals can then be easily rolled up into a yearly overview. Once a forecast is prepared in Excel, different scenarios can be built in to allow the end user to see and compare the result of these scenarios in the one table. One scenario may include what would happen to the profit and cashflow if the sales volume of a product line increased by say 10%. When to avoid spreadsheets for forecasting
The more complex the forecasting becomes due to multiple locations, business units, foreign locations and currencies, and high levels of assumptions or sensitivities, the more it becomes apparent to implement a dedicated forecasting software solution. Don’t give up on Forecasting
Failure is not an option for forecasting cash flows; consider outsourcing this task if you lack the in-house skills to develop the modelling and interpret the results. Your survival as a business is on the line and assuming you have covered this risk, the opportunity to build your business and maximise profitability becomes the key objective. Whichever way you consider it, cash management forecasting is not negotiable for your business.
Jeffrey Luckins is a Director in the Audit & Assurance Division at William Buck – a leading firm of accountants and advisors. This article was co-authored with Lauren Morcom. www.williambuck.com Ph: 03 9824 8555
Vaccination status and the Privacy Act
Businesses across Australia continue to grapple with ways to prevent and manage COVID-19 in the workplace, including compliance with ever-changing Government mandated vaccine requirements and implementing workplace vaccination policies.
As a result, businesses continue to collect sensitive information about employees, contractors and other visitors to the workplace, including vaccination status information and medical certificates. Information about a person’s vaccination status and medical certificates are ‘personal information’ which must be collected, used and disclosed according to Australian privacy laws, including the Privacy Act 1988 (Cth) (Privacy Act) and associated Australian Privacy Principles. The following outlines the key principles to be aware of and considered regarding privacy obligations when collecting this type of information. In what circumstances can businesses collect vaccination status information about employees, labour hire workers, contractors, volunteers, candidates and other visitors?
Vaccination status information is ‘sensitive information’ about an individual and is afforded higher protection under the Privacy Act. This means, generally speaking, a person’s vaccination status must only be collected if: • the information is necessary for one or more of the business’ functions or activities; and • the individual has consented. Businesses may need to collect vaccination status information to prevent and manage COVID-19 in the workplace. When considering worker vaccination information, applicable workplace laws and contractual obligations will impact whether collecting vaccination status information is necessary for a business’ functions or activities. Vaccination information collected ‘just in case’ or for a purpose achievable without the information, will be harder to justify. There are circumstances when consent is not required, including where: • collection is required or authorised under Australian law; or • information is necessary to prevent or lessen a serious threat to the life, health, safety or welfare of any individual or to public health or safety (and is impracticable to obtain consent). Laws requiring and authorising the collection of vaccination status information can include public health orders and directions made by State Governments. When relying on the “required or authorised by law” exemption, the law will dictate what information is to be collected. In most cases, it will be sufficient to sight an individual’s immunisation certificate or history statement confirming full or partial vaccination status and make a record of doing so. It is not necessary (nor recommended) that businesses collect and store a copy of the certificate/statement. In summary, worker vaccination status information may be collected if a public health order or direction is in place requiring that information. If neither applies, where a lawful and reasonable vaccination direction has been given to workers, you can request evidence of vaccination if you consider this reasonably necessary and you have obtained their consent. In all other cases, businesses may collect vaccination status information if necessary for one or more of the business’ functions or activities (including preventing and managing COVID-19 in the workplace) and the individual consents. These principles apply equally to other sensitive information, including medical certificates provided by individuals who have a medical contraindication and may be exempt from vaccination requirements under law.
Collection notice and transparency
It is essential for businesses to be transparent about why vaccination information is being collected and to comply with Australian Privacy Principle 5 (APP 5). APP 5 requires businesses that collect personal information to take reasonable steps to either notify the individual of certain matters about the collection or to ensure the individual is aware of those matters at the time personal information is collected (or as soon as practicable thereafter). Compliance can be achieved by providing a Collection Notice, which is a statement that sets: • why the information is being collected; • how it will be used; • who it will be disclosed to; • whether it will be disclosed overseas; and • whether the collection is required or authorised by law. Importantly from an HR perspective, employers cannot rely on the employee records exemption to exclude them from providing a Collection Notice to employees. The Full Bench of the Fair Work Commission has previously confirmed that the employee records exemption does not apply until after the information has been collected and held within the employee record. Businesses must distribute a Collection Notice to all employees, contractors, labour hire workers, volunteers, candidates for employment and visitors to the workplace when collecting vaccination status information. It can also help obtain valid and informed consent, where required. What should businesses do now?
While vaccination in the workplace directions can be confusing, the associated privacy obligations are relatively straightforward. If your business chooses to or is required to collect vaccination status information about employees, contractors and other visitors to the workplace, we recommend the following : • always provide a Collection Notice (APP 5 compliant) to individuals whose information is collected (including employees); • only collect personal information necessary to prevent or manage COVID-19 or that is required by law; • once collected, personal information should only be used or disclosed within and outside your business on a “need-to-know” basis and for the purposes outlined in the Collection Notice; • have clear policies and parameters for destroying/retaining personal information and only retain for as long as necessary and for the purpose it was collected (do not hold indefinitely); and • ensure the information is securely stored.
