To fund worthwhile projects that fully comply with the objects of the Trust Deed while:
To achieve these objectives, Trustees have determined the following:
On an annual basis, approximately 4% of the asset value of the Trust is expected to be available to be distributed to funded projects. (Note: This figure is calculated from the expected long-term nominal return on investment of 8% less CPI (2.5%), investment management fees (1.0%) and other administrative costs (0.5%).)
The following table represents the maximum funding commitments for future years:
|1 Year Out
|2 Years Out
|% of Annual Funding Committed
Typically, the Trust funds projects up to approximately $50,000 per annum for up to 3 years.
Funds available for allocation by the Trust are limited to earnings on its investments. Current policy is to retain 50% of those earnings, leaving the other 50% for funding of selected projects/programmes.
The objectives of the Trust clearly allow funding across all educational sectors, but do not prescribe the proportion of funding to be allocated to each sector. However, within the limits on available funding dictated by the Funding Policy, Trustees’ decisions to apportion funds are circumscribed by the Trust’s Principal Objective, namely:
“To support the education of students, growers and others considered to be capable of contributing to the development of the wool industry, from the growing to the textile product stage.”
The capability of students, woolgrowers et al to contribute to the development of the wool industry is clearly related to the degree to which any assistance provided by the Trust is contiguous with their career choices and/or their motivation to become leaders. This suggests that the majority of the funding should be directed at the tertiary rather than the secondary education sector. Within the secondary sector, exposure to wool and sheep education might influence employment choices, but the impact will be proportionally diminished the further away it is in time from when such decisions will be made and, correspondingly, the effectiveness of the Trust’s funding is likely to be diminished.
The justification for allocating less funds to the VET sector than to the Colleges and Universities relates to the fact that VET courses are normally shorter and less costly to deliver. In addition, academically trained professionals are generally recognised in the employment market as being more valuable and more likely to develop as leaders. Of course, this is not always the case.
The policy for apportioning funds is described as ranges, rather than as finite targets, so they are not too prescriptive. In practice, the actual mix of project/programme funding between the sectors will be influenced by the circumstances and perceived needs at the time decisions are made.
|0% – 5%
|VET – Production
|5% – 10%
|VET – Fashion Schools
|10% – 23%
|65% – 80%
The long term percentage range applies over a 10-year funding cycle, but within any particular year these may be exceeded depending upon the quality of the applications received.
In 2005 the Trust authorised and funded Mr Bob Richardson, formerly AWC and Wool International, to conduct a “Review of Wool Industry Tertiary Education Strategies”. This report noted that loss of funding of about $2,500 per student unit discouraged the transfer of students to UNE. The report noted that the current subsidy of $3000 per Faculty once 6 or more students were enrolled was considered inadequate.
The report suggested a tiered structure of subsidy with $500 each for the third and subsequent enrolment and be raised to $1,000 each for the fifth and subsequent enrolments externally at UNE.
At their meeting on the 10th February 2006 Trustees discussed the report and agreed to accept all of its recommendations, and in particular resolved that the current requirement for 5 or more students to be enrolled before any subsidy was payable be dropped to 1 or more.
Subsequently, at their meeting on the 24th April 2006, Trustees clarified the intent of this resolution: $1000 would apply for each of the first 5 students, rising to $1200 for 6 or more.
The distribution of the subsidy was initially delegated to UNE using existing funds provided by the Trust. From 2013, subsequent to a renewal of the contract with UNE, payment was assumed by the Trust, using enrolment data provided by UNE. The subsidy was set $1,000/student/unit for the 1st 10 students rising to $1,200/student/unit for student numbers above 10. Since 2016 the subsidy has been $1,000/student/unit for the 1st 10 students rising to $1,500/student/unit per institution once student enrolments exceed 10.