Bay of Plenty Polytechnic Annual Report 2012 by Kristina Nink

2012 a nnual r eport Our People, Our Performance

1982 - 2012

Bay of Plenty Polytechnic Te Kuratini o Poike

30 Great Years

Bay of Plenty Polytechnic is proud to have been serving our region for 30 years. Since its inception as a small community college in 1982, the organisation has grown from strength to strength, building on its many partnerships with industry, other educators, students, national and community partners. Together, we have grown our Polytechnic from 15 tutors and a handful of programmes to one where we support around 7,000 students, offer more than 120 programmes and employ 361 full-time equivalent staff. Take a visual tour of our progress below.

2012

Road Transport, Warehousing & Logistics Training Centre in Maleme Street

Rt Hon Sir Jerry Mateparae opens Ako Atea, the new student learning commons at Windermere

» New Zealand Governor General, Lt Gen Rt Hon Sir Jerry Mateparae, opens Ako Ätea, the new student learning commons at Windermere » The 3,000m2 Road Transport, Warehousing & Logistics Training Centre is established in Maleme Street » Over 120 certificate and diploma programmes and 13 degree pathways offered » 3,246 Equivalent Full-Time Students (EFTS) and 361 staff

2010

» University of Waikato staff and students move in to share Windermere Campus and the Bongard Centre » New Zealand’s largest purpose-built engineering and welding teaching facility opens » An Aquaculture facility is completed with research laboratories and culture rooms - the first of its kind in the Bay of Plenty

2007

25th Jubilee celebration

New engineering and welding facilities

Windermere Road signage heralds new partnership Master carver James Tapiata’s Tomokanga (archway) provides the gateway to Pomare and links both sides of the campus together

Commemorative design created by graphic design student Angela Airey

» 25th Jubilee » 3,000 Equivalent Full-Time Students (EFTS) and 330 staff

2003 Te Pare a Ruahine, the Aquatic & Fitness Centre, offers a 25 metre heated pool, state of the art gym and teaching facilities

» Opening of Te Pare a Ruahine, Aquatic & Fitness Centre » Opening of Pacific Coast Applied Research Centre and introduction of Pacific Coast Scholarships » 2,703 Equivalent Full-Time Students (EFTS) and 278 staff

2000

Working out at the gym in the Aquatic Centre complex

» Tauranga Moana bestowed the designation of Te Kuratini o Poike » Opening of Te Aongahoro (Student Learning Centre – Library, Copy Centre, a café and lecture theatres) » 1,892 Equivalent Full-Time Students (EFTS) and 213 staff

Te Aongahoro opens

» Transformation of horticulture centre into hospitality studies centre, including the commercial training restaurant the ‘Atrium Restaurant’ » 1,426 Equivalent Full-Time Students (EFTS) and 118 staff The newly built Bongard Centre opens on Cameron Road, named after Bay of Plenty Polytechnic’s inaugural Chairman Bill Bongard

1997 1991 Computing programmes offered at the Bongard Centre

» Construction of the Bongard Centre in the Tauranga CBD for business, computing and hairdressing programmes » 1,159 Equivalent Full-Time Students (EFTS) and 219 staff

1988

» Name changed to Bay of Plenty Polytechnic » Completion of Rex Williams student hub, including a childcare centre and cafeteria A new name and new logo

The first Hospitality and Cookery programmes are offered

21 September 1982 » Official opening of Bay of Plenty Community College at Poike Road » 15 staff Windermere Campus in the 1980s

Community College full-time staff

1982

Contents Eke Pänuku – Our Vision

2012 At a Glance

2012 Highlights & Success Stories

Chairperson’s Report

Chief Executive Report

Governance & Accountability

Statement of Responsibility

Independent Auditor’s Report

Equal Opportunities

Equal Education Opportunities

Staff Research Outputs

Statement of Service Performance

Financial Overview

Five Year Performance Summary

Statement of Financial Position

Statement of Comprehensive Income

Statement of Changes in Equity

Statement of Cashflows

Notes to the Financial Statements

Bay of Plenty Polytechnic is committed to reducing its environmental footprint. This publication is printed on chlorine-free paper sourced from sustainably managed forests (ISO 14001).

Year Celebration

1982

Bill Bongard (1924 – 2010) Founding Chairman, Bay of Plenty Polytechnic “I wouldn’t swap the years I’ve spent working with the Tauranga community to lay foundations for today’s Polytechnic for anything,”

1983 Andrew Wood Organic Category Manager, Seeka Andrew’s horticulture qualification has helped him enjoy long-term career success. He is highly regarded in the sector, taking an active role in a number of industry groups.

1984 Clinton Bowyer Bay of Plenty Polytechnic Horticulture Tutor (1984-2004) Clinton’s passion for education and all things green inspired students of all ages. “Seeing students graduate with a clear sense of direction was so rewarding to watch.”

Eke Pänuku

Reaching our potential together. At Bay of Plenty Polytechnic we share a commitment to providing a dynamic learning experience where students discover their strengths and potential in an active and stimulating environment.

Year Celebration 1985

Ivan Wanhill (1956 – 2009) Bay of Plenty Polytechnic Applied Technology Tutor Ivan Wanhill was a man with a huge heart. He took time out to become involved and to listen to people, touching the lives of many.

1986 Mike Bell Director, Belco Homes This carpentry graduate now employs eight staff including other Polytechnic graduates. Mike’s company is very well thought of, winning 20 Master Builder House of the Year Awards!

1987 Michelle Paddison Senior Solicitor, Holland Beckett Michelle, a graduate of the Executive Assistant programme, finds her work as a solicitor very satisfying. She loves being able to give something back to her local community.

We deliver a comprehensive range of quality programmes that are futurefocussed. Developed with industry input and students in mind, our unique relationships with other tertiary organisations means our programmes are providing the progressive pathways necessary to lifelong learning. At our Tauranga campuses and satellite facilities, we assist our diverse learners and staff through personalised support systems, modern facilities and our commitment to continued excellence with initiative, enterprise and achievements that take society forward.

Our Vision

staff members are industry experts dedicated to understanding, learning and providing what industry needs. Delivery of this expertise is enhanced by our purpose-built, state-of-the-art facilities.

Eke Pänuku Reaching our potential together. Our vision is founded on an institutional dual heritage commitment to both the principles and practices of Te Waka Hourua (‘the twin hulled waka’). Our Values Our values guide our expectations and behaviours through: • Manaakitanga – respecting others • Whanaungatanga – connecting with others • Kotahitanga – unity of purpose

Our Strategic Intentions In 2012 we established a new set of strategic intentions for our organisation: • Excellent teaching and learning that enhances student completions and success • Providing education that is responsive to our region and New Zealand • Efficient and effective business practice ensuring a sustainable, innovative and dynamic institution

Our People Our School of Applied Science is a passionate, curious and devoted team, working with students and the community to create healthy outcomes for people and our own natural environment. They pride themselves on focusing their research in areas that support our region’s needs, working collaboratively with industry, community and local government partners. Our School of Applied Technology team are not just excellent teachers. They are also highly skilled and experienced architects, builders, electricians, engineers, mechanics, welders, law enforcement and road transport professionals. The School’s

1988 Craig Major Owner, Bethlehem Motors Automotive graduate Craig, has travelled the world working on just about every engine you can imagine. “It’s great having my own automotive business which provides me with a flexible lifestyle!”

Our School of Business Studies brings together a group of people with a rich array of specialty expertise, experiences and perspectives. The School encompasses professionals teaching subjects as diverse as business management, finance, applied law, business administration and IT, through to hospitality, flight attending and tourism. They are motivated, innovative and have a passion to help others succeed. Our School of Design and Humanities is hallmarked by creativity, ingenuity and passion. Covering design, art, music, education, social services, broadcasting, health and beauty, the School is student-focussed and works closely with local industry and the community, ensuring the best student outcomes. At the heart of the Polytechnic is an amazing group of people dedicated to helping the organisation reach its potential. They support students and staff in developing their skills, both personal and professional; they help people to stay active, healthy and safe at work and at home; and they use their human resources, financial, marketing, research and technology expertise to enable and advance our vision. The Polytechnic is home to a vibrant community of students creating a vibrant, friendly and fun atmosphere. They come from a range of different backgrounds and experiences and go on to do many different things, but they have one thing in common: they are lifelong learners, with the skills and competencies to succeed in the dynamic changing world of work. We continue to work very closely with industry, iwi, other education providers and our community to create value for our students and stakeholders. Through our partnerships and collaborations, we aim to enhance learning outcomes for students and their employers and to ensure we respond expertly to our stakeholder’s needs.

1989 Jon Mayson Company Director Jon gained his NZDipBus from the Polytechnic in 1989. That, along with his maritime qualifications, saw him accepted into an MBA. “I want to inspire people to be aspirational.”

1990 Lorna Carey Commercial Manager, Service Stream Ltd Lorna is an NZDipBus graduate and has enjoyed an exciting business career here in NZ and across the ditch. Career driven and focussed, this lady is going places!

Year Celebration 1991

1992

Lance Hawkins Container Repairer, NZL Group Lance graduated from Pre-Trade Engineering and today enjoys a lucrative career. “Welding is a skill you can take anywhere in the world. You can’t go wrong with a trade qualification.”

Shane Yardley Head Chef, FISH Restaurant, Hilton Auckland Shane has led something of a dream career in hospitality, working with famous chefs around the world. “The Professional Cookery course gave me the confidence to succeed.”

1993 Kelly Pender Programme Co-ordinator, Certificate in Fitness Kelly’s enthusiasm for people was acknowledged with a prestigious Ako Aotearoa National Tertiary Teaching Excellence Award in 2010. “It’s such an awesome feeling seeing people reach their potential.”

2012 At A Glance

6822

Students enrolled

3,204

41%

enrolled in Level 1-3 programmes

total EFTS

Student Gender

28%

733 total EFTS

enrolled in Level 4-5 programmes

School of Applied Science

719 total EFTS

31%

School of Applied Technology

863 total EFTS

enrolled in Level 6+ programmes

School of Business Studies

889 total EFTS

School of Design & Humanities

Surplus

53% Male

$1,838,000

81%

Total assets

successful course completion 1

Government funding

86%

$101,621,000 $26,722,000

Student tuition fees

$12,062,000

overall student satisfaction 2

Other income

$4,692,000 47% Female

146 formal programmes

101 full programmes (40+ credits)

45 short awards (1-39 credits)

87%

student satisfaction: School of Applied Science 2

91%

student satisfaction: School of Applied Technology 2

98%

student satisfaction: School of Business Studies 2

85%

student satisfaction: School of Design & Humanities 2

1. Based on provisional 2012 EPI data sourced from TEC Workspace 20/02/2013-https//workspace.tec.govt.nz 2. Information sourced from 2012 Programme and TeachingEvaluations Summary report presented to Academic Board on 16/11/2012 - agenda item 12/10.5.4

1994

1995

Marise Hurley Media Manager, Pricewaterhouse Coopers Marise graduated from the Television Production Skills programme and has had a dream career in media. “I’m proud I’ve taken the skills I learnt and lived my dream.”

Howie Hinton (1963 – 1996) Sports & Fitness Tutor It’s been 16 years since Howie Hinton passed away but his memory is as alive today as it ever was. Howie had a truly caring and healing way with people.

Student percentages based on EFTS

31% 2% 1%

Mäori

4 1% 18% 11% 12% 11% 7%

Pasifika

International

People with Disabilities

under 20 years old 20-24 years old 25-30 years old 31-40 years old 41-50 years old 51+ years old

1996 Shannon Moyle Owner/Director Form NZ Shannon is a director at award-winning Tauranga building firm, Form N.Z. Shannon credits his carpentry qualification with providing handson skills and exposure to broader business.

2012 Highlights & Success Stories 2012 was another productive year for the Polytechnic, not least because we celebrated our 30th anniversary. Further cementing ourselves as a leading regional tertiary provider we also placed highly in the National League Tables and the Youth Guarantee initiative, launched a number of new programmes to meet regional and national demand for skilled workers and celebrated many successes of our staff and students.

Ako Awe Restructure – A New Model for Akonga (Student) Support

Bay of Plenty Polytechnic One of Top Performers in the ITP Sector The Tertiary Education Commission released its annual performance data for all polytechnics, ranking Bay of Plenty Polytechnic in the top four performing polytechnics in New Zealand. Successful course completion rates increased by 12% to achieve an 80% overall completion rate. Mäori study completions moved from 76% in 2011 to 78% in 2012, closing the gap with non-Mäori students to a 2% differential.

Youth Guarantee a Success at Bay of Plenty Polytechnic In figures released by the Tertiary Education Commission in 2012, Bay of Plenty Polytechnic was named the top performing ITP (Institutes of Technology and Polytechnics) in the Government’s flagship Youth Guarantee initiative. The programme aims to improve the educational achievements of at risk 16 and 17 year olds by providing the opportunity to participate in a range of vocational courses. The Polytechnic was one of the first of the ITPs to provide the free study programme in 2010. Our unique approach to learning was so successful we were granted an additional 24 students for 2011, seeing 63 young people having the opportunity to successfully engage in lifelong learning. Of those 63 young people, 83% of the students successfully completed both the programme and their qualification.

2012 saw us undertake a new philosophy for student support, breaking down both physical and mental barriers. Where students used to have to visit several locations to get things done, today they can access all that they need from one shared learning commons. Ako Atea provides academic assistance, guidance and support and our students can eat, study, dream and achieve, all from the one space.

New Programmes Engineering

Rejuvenation of the Senior Leadership Team In 2012 we welcomed two new directors to the senior management team. These appointments bring new skills and fresh perspectives to our strategic direction. Dr. Helen Anderson joined us as Director Academic, bringing a wealth of experience in nearly all levels of education. Her previous posts in the tertiary sector include Academic Director at Manukau Institute of Technology and roles at Unitec and the University of Auckland. Also new to the team was Corporate Services Director Anthony Robertson. Anthony holds an MBA (with distinction) from the University of Glamorgan, a degree in Banking and Finance (BSc Honours from Loughborough University of Technology) and is a member of the Institute of Chartered Accountants in England and Wales as well as the New Zealand Institute of Chartered Accountants.

Tertiary Education Minister Steven Joyce announced that provision had been made for 1000 extra places for engineering students at universities and polytechnics in 2013 to help address the shortage of engineers in New Zealand. Responding to this call and in conjunction with industry, we offered a new NZ Diploma in Engineering (Civil) to complement our existing mechanical and electrical engineering courses. The Polytechnic is one of only a few educational institutes in New Zealand to offer all three engineering diplomas, all taught within our world class engineering workshops and laboratories – the largest in the Southern Hemisphere. The engineering facility is also home to the Titanium Industry Development Association (TiDA), a research facility specialising in materials science and metallurgy.

Carpentry Group Leader Wins Chamber of Commerce Tauranga Business Scholarship Brian Dillon, Group Leader of Carpentry, was awarded the Chamber of Commerce Tauranga Business Scholarship. The scholarship will assist him as he takes on his second year of study with the University of Waikato Management School’s Postgraduate Diploma in Management Studies. Beef and Lamb Excellence For the third year in a row, the Polytechnic’s Atrium Restaurant has been awarded a prestigious Beef and Lamb Excellence award. The award cements the Polytechnic as a provider of top quality industry-ready young chefs and of course, as the best place in the Bay to get top-end restaurant quality food at a very reasonable price!

Polytechnic Student Named BOP Young Fruit Grower of the Year Young Te Puke kiwifruit orchardist Joel Wanhill won the 2012 Bay of Plenty Young Fruit Grower of the Year competition. The 24-year-old took out the title at the regional competition after scoring top marks in at least three of the six categories and picking up the supreme practical award.

Immigration Advice After successfully winning the national tender to deliver a new tertiary qualification for immigration training in 2011, the Polytechnic launched its Graduate Certificate in New Zealand Immigration Advice in mid 2012. The Graduate Certificate attracted a large cohort of students of all nationalities from around New Zealand and overseas, many of whom attended the annual Graduation Ceremony in December.

Surveying In response to industry demand, the Polytechnic launched the National Diploma in Surveying. Designed for people already working in industry the flexi-learn programme sees land surveying students fit in study around work commitments. Such has been the programme’s success that we hope to deliver a full-time option in 2013.

Fashion Tutor Wins at WOW Fashion tutor Debbie Shepherd wowed the judges at the 24th Brancott Estate World of Wearable Art (WOW) Awards, winning the Shell Sustainability Award in the Avante Garde section. Constructed entirely using upcycled metal zippers, City Lolita featured a corseted tailored jacket, a masculine shirt, tie and feminine crinolined skirt. Other Highlights Polytechnic celebrated its thirty year anniversary Students and graduates were finalists and winners at BOP Sports Awards Music graduate Jessica Ross released her first album Hospitality students won silver & bronze medals at the NZ Culinary Fare Competition.

Chairperson’s Report Educational Performance This year we assisted over 6,800 students in achieving their goals, of whom nearly 2,800 were under 20 years old. Supporting them throughout their study were some 501 staff, all committed to helping students complete their courses and qualifications successfully. Some of those staff show incredible resourcefulness and determination and achieved wonderful results, even when circumstances provided challenges to both student and tutor.

Ehara taku toa, he taki tahi, he toa taki tini Our success is not ours alone, but that of us all.

I am pleased to present the Bay of Plenty Polytechnic’s 2012 Annual Report. Annual reports often include an overwhelming array of facts, figures and statistics. It can be hard to remember that what we are trying to report on is how successful we have been in developing skills that enable our students to improve their lives and hopefully, through their contribution to our economy, help improve the lives of others.

Supporting, guiding and listening to them was a management team which has undergone some changes: we farewelled retiring Academic Director Dr Terry Fulljames earlier in the year and welcomed Dr Helen Anderson as new Academic Director; we said goodbye to our Finance Director, Paul Wollaston and appointed Anthony Robertson as Corporate Services Director; in February 2013 we farewelled our Director of Education and Mäori Development, Kuku Wawatai. Our past Directors, Terry, Paul and Kuku, have contributed significantly in developing the Polytechnic into one of the top performing polytechnics in New Zealand and our new management team members have already shown their worth. Dr Alan Hampton has continued to provide the thoughtful leadership which has helped keep Bay of Plenty Polytechnic in the top ranks of the polytechnic sector. On behalf of our governing body, I thank all of them, both current and ex-employees. I also thank our wonderful students, for they are the ones who determine our success as a polytechnic. Once again, their excellent performance, as shown by preliminary 2012 results for completions, retention and progression, has improved on 2011: • Increased course completion rates at 81%, up from 79% in 2011 • Qualification completion rate up from 2011 by 2% to 74% • Mäori participation up to 32% from 30% in 2011, when the proportion of Mäori in the Western Bay of Plenty is recorded at 16% • Mäori qualification completion rates up from 66% in 2011 to 70% • Youth Guarantee students provided course and qualifications completions over 80%, with Mäori participation in these programmes above 90% Small percentage increases may seem unremarkable, but it has to be recognised that the higher up the percentage scale, the harder it is to make large gains without sacrificing quality. The Polytechnic’s role is to improve the skill base of the country; this cannot be achieved by compromising the skills level achieved for selfish institutional reasons.

Year Celebration 1997

Katherine Barlow Owner, Wishing Well Florist, Hawera Floristry graduate Katherine Barlow is proud of her shop ‘Wishing Well Flowers’, in Hawera. “I love it” she says “and business is booming!”

1998

1999

Paul Hamilton Curator, Melbourne Aquarium Paul manages a team of 40, creating amazing experiences for their 2,000 or so daily visitors. “I chose Marine Studies because it was hands on and the tutors were incredible.”

Linda Munn Artist Art graduate Linda, says “I’m a storyteller. I share stories through my art. My people are important. Those before me and after me. I want to leave a visual inheritance for my grandchildren.”

Financial Performance

Future developments

A detailed commentary of the Polytechnic’s financial performance is provided in the Corporate Services Director’s Financial Overview.

Last year I reported that we would be seeking collaborative opportunities with a number of parties. Having now explored these we consider the greatest opportunities lie within the Bay of Plenty Tertiary Education Partnership, particularly if Waiariki Institute of Technology joins the Partnership. The Partnership would provide an excellent platform from which to develop a region-wide tertiary education offering which will benefit employers, students and communities which have lower exposure to tertiary opportunities. We look forward to being part of this.

We are pleased to have achieved a retained surplus of $1.8m (2011: $2.3m) in a difficult year in which various sources of income decreased and a number of costs increased. Some $1.2m of that surplus is however attributable to Government funding, (for Quality Reinvestment), which will not be available in future years. When all exceptional items such as this are excluded from the retained surplus, our earnings from operations, the underlying operating surplus, have decreased by some $2m compared to 2011. We have already put in place measures to return to a stronger operating surplus in 2013 and will be monitoring these closely. In 2011 we agreed on a number of capital projects for 2012 to improve the fabric of our learning spaces and for the introduction of a new student management system. These were to have been funded out of a combination of cash from operations, from the Quality Reinvestment Fund and from reserves. Unanticipated overruns on some of the projects have meant that our cash balances are lower than we would like. However, we are confident that with the measures put in place and some of our future plans, the Polytechnic’s cash position will improve in 2013.

Other initiatives in the pipeline for 2013 are: • Launch of our new student management information system and additional support software • Providing a Tertiary Teaching programme to all our teaching staff, to enhance their skills and facilitate student learning • A new strategy for growing international student numbers • Building stronger relationships on a more formal basis with local iwi • Developing the use of technology in teaching and learning Finally, I would like to thank my fellow Council members for their work and their commitment. I know I have enjoyed their participation and benefitted from their wisdom. Thank you all.

Ian Turner Chairperson of Council

2000

2001

2002

Frank Begley City Partnership Manager, Tauranga City Council A former journalist, Frank completed a Certificate in Small Business Management and today works as City Partnership Manager, helping businesses who want to ‘give back’ to the community.

Dan Shea Sales/Account Manager, Mills Reef Winery After graduating from the Business Management School, Dan moved from hospitality into the sales team at Mills Reef. “I’m proud of the product and company I represent.”

Teresa Hodges Owner/Designer BLAK Basics Teresa’s affair with fashion started at an early age and, since her BLAK Basics label debuted at NZ Fashion Week in 2007, the talented fashion graduate hasn’t looked back.

Year Celebration 2003

Dan Necklen Self-employed, The Likeable Marketing Company Business graduate Dan runs The Likeable Marketing Company where his tagline is ‘Helping Small Businesses Become More Awesome’ and he also helps to run the charitable trust ‘4Good’.

2004

2005

Akerei (Rei) Maresala-Thomson Field Intelligence Officer, Counties Manukau, NZ Police A graduate of the Prep for Law Enforcement programme, Rei’s an integral part of a police initiative helping at risk youth into employment.

Penny Mitropoulos Event Delivery Manager, Tauranga City Council Penny’s sport and recreation qualification has led to a rewarding career in event management. Penny says “it’s rewarding watching the events take off.”

Chief Executive’s Report Whaia te iti kahurangi ki te tuohu koe, he maunga teitei If you have to bow your head, let it be to the loftiest mountain.

The Chief Executive’s report should reflect critically on the year concluded and look at the new year in prospect. This report will discuss the performance of the institution in 2012 against a number of key goals and highlight some 2013 strategic intentions. Responding to the Global Financial Crisis and ensuring our country comes out of the crisis period strategically positioned and equipped for future strength and prosperity requires a primary focus on its people, their skills, knowledge and productivity. Such a focus requires the skills and knowledge allied with the ability to be innovative, creative and display positive commitment. This is the environment tertiary education finds itself in currently, if we are to play our full role in the country’s and our people’s future wellbeing. The vision must be that all should have the opportunity to experience success in tertiary education and training which enables people to influence their own and collective future(s) with mana and dignity. The reality is that a capped funding environment, performance indicators relating to retention and completion of programmes and delivering what we promise, has wonderfully sharpened tertiary educators’ commitment to what is necessary and to which all of the ITP sector also ascribes, namely success for our students. At the beginning of 2012, Bay of Plenty Polytechnic embarked on a number of key changes to our strategies and practices associated with supporting our students to succeed. A key outcome was the redevelopment of the previously separate Library and Student Learning Support areas into an integrated Student Learning Commons, ‘Ako Awe’. No longer were learning support and library spaces separate. Instead there was creation of an integrated common space, of and for students, providing social spaces flowing into learning spaces - individual and group, flowing into the library collection/information space. An integrated ‘student space’ but one where staff and students felt equally comfortable to use. Accompanying the physical changes was the decision to provide learning facilitation and support into the classrooms and workshops. Supporting learning has to be a partnership between our staff and students and underpinning that philosophy is the partnership between our teaching staff and learning facilitators. A partnership that is now part of the students learning environment ie the classroom and the workshop. If we are to irreversibly improve retention and completion statistics, it has to be focussed on strengthening facilitation of our students’ learning in ‘their’ space, where they are comfortable, safe and the learning takes place.

2006

2007

2008

Mika Manaka Airport Information Advisor, Narita International Airport International student Mika completed her Tourism and Travel qualifications before going on to secure her dream job at Narita International Airport, situated just outside of Tokyo.

Sarah-Jayne Shine Graphic Designer, Bay of Plenty Regional Council As a young mum, Sarah enrolled in the Graphic Design Diploma and it changed her life. “I look back now and I’m proud of how far I’ve come!”

Dominic Agnew Network Promotions Manager, Mai FM Following some work experience with Tauranga’s MediaWorks while completing his Radio Broadcasting course, Dom went on to secure his dream job at Mai FM in Auckland.

Bay of Plenty Polytechnic has been fortunate indeed in the creative impact of our Education and Mäori Director, Kuku Wawatai, who has recently left the institution. He coordinated the development and strategies to close the parity gap for Mäori, with nonMäori students. Te Waka Hourua is the philosophy and practice built on a number of key principles, including recognising and enhancing the mana of our Mäori students, ensuring relevance and contextualisation of what is taught, where and when; recognition and relevance of Te Ao Mäori, collaboration and contribution of iwi/hapu and whanau; and ensuring the development of staff capability. Te Waka Hourua, together with managed interventions to ensure student retention and success, has contributed to the production of significantly improved statistics, which we anticipate will be further enhanced when 2012 results are confirmed. The principles on which Te Waka Hourua is constructed can also be equally applicable to all the institution’s collaborative relationships. We must focus on consistent engagement with our students and our communities, a safe encouraging supportive learning environment, provision of relevant skills and knowledge for their future development and wellbeing and staff capable of achieving these outcomes. NEETS (Not in Employment, Education or Training) has suddenly become a significant area of concern and challenge for the education sector and Government. The Bay of Plenty has the second highest number of NEETS for the region’s population, in New Zealand. The challenge is to provide a learning experience that recognises and responds to the likely previous poor secondary experience a large number of NEETS have experienced. Socialisation is very much the first phase of the

programme to enable the student to feel safe and respected within the learning environment and within the cohort. Only when that self-confidence and attitude is available can these students efficiently and effectively take on board the knowledge and skills so much required. An increasingly important contribution to student success is involving family/whanau, iwi/hapu and employer, in the student’s journey and aspirations. Consequently these parties then take an ownership of and contribute to, the student’s wellbeing and progress. Particularly for first chance and second chance learners, the socialisation and active involvement of others is proving a powerful contributor to student success, regardless of whether Mäori or non-Mäori. In a capped funding environment and one which in certain quarters is increasingly focused on credentialisation, the challenges posed by disparity and removing barriers to taking that first step on the tertiary journey are huge and often resource intensive. However, our inability or lack of commitment to address these challenges fails to recognise the potential social decohesion that could result. It is the ITPs who have arguably the major role to play in successfully providing vocational education opportunities to all of our communities. Institutional partnerships continued to be a distinctive Bay of Plenty Polytechnic strategy to enable the institution to provide guaranteed seamless pathways to relevant degree qualifications. The Bay of Plenty Tertiary Partnership, based on the original (founding) members, Bay of Plenty Polytechnic and the University of Waikato, came into 2012 in expanded form through the joining of Te Whare Wananga o Awanuiarangi. The Tertiary Partnership sees the three member institutions committed to collaboration to provide a

better range and depth of programme and research opportunities than could be achieved through any institution ‘alone’. The Tertiary Partnership is unique to New Zealand, bringing together the complementary character and strengths of the three institutions with common goals for a region. The Partnership is committed and already practicing joint academic developments and operating a shared campus experience with common systems and processes. Whilst it will also present its challenges, consistently practising the principles on which the partnership is founded, including joint decision making and parity of esteem, will without doubt present enhancement of the value of tertiary experience for our students and communities. As we move into 2013 there are positive prospects of Waiariki Institute of Technology, joining the partnership. That event would enable the vision of a seamless regional tertiary system to truly be achievable. Bay of Plenty Polytechnic’s experience in 2012 of delivering programmes in Kawerau and Opotiki, where tertiary opportunities for the community are beset by difficulties and barriers, were great examples of the unsatisfied need that exists in some of our most deprived and distant sub-regions, for relevant and accessible tertiary opportunities. The model employed by Bay of Plenty Polytechnic for these programmes, produced good student outcomes but at a not insignificant cost. However, unless we collectively – providers, agencies and communities – are prepared to recognise the cost of such necessary provision, the problems and inequity merely expand. Importantly first step provision is essential, however it must have clear and achievable progression pathways for the students.

In such a demanding climate it is important to recognise the generous attitude of collaboration and collegiality that exists within our ITP sector and our staff. The ITP sector has never had a more important and decisive role to play in our country’s developing future. It is ironic and timely, given the afore mentioned collaborative commitment, that it will be severely tested by the plethora of TRoQ outcomes. Whilst a very logical and laudable initiative, the process of achievement is fraught with inconsistencies and hugely resource intensive. Development of the range of new programmes resulting from the TRoQ development groups will truly test the commitment and ability of ITPs to work productively together and with ITOs and PTEs. 2013 will see Bay of Plenty Polytechnic introduce a new Student Management Information System, Tribal’s EbS4. The new system replaces the long serving ProMIS system, developed by Bay of Plenty Polytechnic in the early 1990s. The request for proposal, due diligence, selection of a preferred system and contract negotiation, was a collaborative exercise of the Tertiary Alliance New Zealand (TANZ), of which Bay of Plenty Polytechnic has been a member for five years. Bay of Plenty Polytechnic goes ‘live’ on May 31. 2013 and will become the fourth member of TANZ to introduce the same student management information system within twelve months. Following the introduction of EbS4, Bay of Plenty Polytechnic will then introduce Technology One as its finance system. The importance of the significant investment of money and time in these new systems is to better

Year Celebration 2009

Sam Honey Programme Co-ordinator, Certificate in Preparation for Law Enforcement “I’m incredibly fortunate to have a job I truly love,” says Sam. In 2009 this was reflected in Sam being awarded a prestigious Ako Aotearoa National Tertiary Teaching Excellence Award.

‘future proof’ the organisation and to provide quality, reliable data with ‘real time’ currency enabling improved operational management and planning for the institution. Internationalisation of the institution is another key strategic intention. Whilst not under estimating the competitiveness of the global international student market, the intention is to provide a quality international student experience and outcome and in so doing, add further value to our domestic student experience and the institution as a whole. Importantly we must be prepared to support our international students’ success with the necessary array of learning support and pastoral care services. In the first half of the year the institution will review its Campus Development Plan, with particular recognition of the role of institutional partners delivering pathway programmes on our campus. Later in the year, the institution intends to develop a new Strategic Plan with extensive input from stakeholders, staff and students. Never has the role of our regional vocational ITPs been so crucial to its people, the performance of our regions and New Zealand. Challenges will continue to abound but rich opportunities will arise for committed, innovative and aspirational institutions.

motivation and performance. They epitomise the very best in being ‘a professional educator’. Increasingly the path forward for our institution also requires the input and commitment of our governance body. The Council of Bay of Plenty Polytechnic, led by Chairperson Ian Turner, understandably sets high expectations of the institution. The Council is also fully committed and future focussed in the working partnership with senior management to deliver the very best tertiary opportunities for our people and the employers in the Bay of Plenty and beyond. Such a working partnership continues to be hugely valued by senior management of the institution.

Dr. Alan Hampton Chief Executive

The performance and reputation of an institution is made by its staff and the outcomes achieved by its students. The dedication, professionalism and creativity so necessary to be an effective, high quality and viable tertiary institution are present in abundance at Bay of Plenty Polytechnic. I would like to recognise all our staff for their passion,

2010

2011

Campbell Wood Orchard Manager At only 22, horticulture graduate Campbell, supervises 180 people in a post-harvest facility and in 2011 won the BOP Young Horticulturalist of the Year Award and the Bruce Stowell Scholarship.

Ian Wilson Student, Bachelor of Nursing For Ian, the 2011 Christchurch earthquake was a catalyst for change. Enrolling in the Health Care Assistance course, he says “Now I know my kaupapa – my purpose - to help people.”

2012 Kelly Ratana Recipient, Fulbright Scholarship 2012 High achieving Kelly has degrees in arts and science, completed the Polytechnic’s Marine Studies course and is a Fulbright Science and Innovation Graduate scholar. “The best is yet to come!” she says.

1982 - 2012

Bay of Plenty Polytechnic Te Kuratini o Poike

Governance & Accountability For the year ended 31 December 2012

Role of the Council

Academic Board

Bay of Plenty Polytechnic Council has overall responsibility for the strategic direction and ensuring the effective management of the Polytechnic’s activities.

This committee, meeting monthly, is required by statute and is responsible for ensuring the academic quality of programmes offered by Bay of Plenty Polytechnic. All curricula are reviewed and approved by the Academic Board and, where appropriate, referred to an external accreditation body prior to being offered to students.

This responsibility includes areas of stewardship such as: • formulating our strategic direction in line with the Government’s Tertiary Education Strategy • directing the Chief Executive and holding him accountable for performance with explicit and measurable performance criteria • ensuring the institution adopts sound organisational and financial management • ensuring compliance with relevant statutory requirements • ensuring the institution adopts a sound risk management strategy for all its activities • safeguarding public interest in the institution Bay of Plenty Polytechnic Council has appointed the Chief Executive, Dr. Alan Hampton, to be in charge of institutional operations and has delegated certain powers of management to him as provided under Section 196 of the Education Act 1989. The Chief Executive has in turn appointed directors and other senior managers to provide leadership and management for the organisation.

Governance Philosophy The Council has been established under the Education (Polytechnics) Amendment Bill 70-3. Bay of Plenty Polytechnic Council believes its focus is to serve the interests of students, employers and other stakeholders in the Tauranga and Western Bay of Plenty community. Council and management acknowledge their complementary roles and responsibilities in ensuring the efficient and sustainable performance of the institution and are signatories of the Statement of Responsibility contained in this report. The Council has eight members; four Ministry appointed Council members and four Council appointed representatives.

Council Committees The Council has established four committees to monitor and assist in the effective fulfilment of the Council’s specific responsibilities.

Kaunihera Mäori Kaunihera Mäori, meeting four times per year, operates within the terms of reference established by Bay of Plenty Polytechnic Council. The purpose of the committee is to provide a meaningful mechanism for Mäori participation in governance and decision making, in relation to the Polytechnic‘s responsiveness to the Treaty of Waitangi. In particular, attention is given to strategies to enhance Mäori participation and success, the development and delivery of Matauranga Mäori and a contribution to the development of all new programme initiatives in the organisation.

Audit and Risk Committee The Audit and Risk Committee operates within the terms of reference specified by Bay of Plenty Polytechnic Council. The Committee assists the Council in carrying out its responsibilities under the Education Act 1989, the Public Finance Act 1989 and the Financial Reporting Act 1993 with respect to management accounting practices, policies and controls relative to the Polytechnic’s financial position. The Committee also reviews and makes appropriate inquiry into internal control systems and mechanisms, as well as direct involvement in key strategic decisions that affect the financial position of the Polytechnic and its delegated responsibility to oversee the Annual Report process. The Audit and Risk Committee meets bi-monthly and holds special meetings as required.

Bay of Plenty Polytechnic Council’s Chief Executive’s Remuneration Review Committee The purpose of the Committee is to align the expectations of the Council and the Chief Executive through developing, with the Chief Executive, a set of annual performance expectations with appropriate KPIs. At the conclusion of the year the Committee will review the Chief Executive’s performance against the expectations and KPIs. The conclusion of the review will inform the extent of the award of the ‘at risk’ performance based component of the Chief Executive’s remuneration.

Each committee consists of representatives from Council and senior management. The committees meet in accordance with the agreed schedule of meetings, with additional meetings held as required. There are three permanent committees of Council; other committees and working parties are formed to carry out specific delegated tasks as and when required.

Meet Our Council Members Ministry appointed members:

Council Appointed representatives:

Ian Turner (Chair) Ian Turner is Managing Director of New Zealand Educational Tours Ltd, a Tauranga based company. As a Chartered Accountant, Ian has a strong interest in helping organisations operate more effectively. He is a past president of Tauranga Chamber of Commerce and brings 28 years of board experience, 16 of which he has spent as Chair. Ian is keen to use his skills and experience to help enhance the role of vocational education in the region. Dr. Neil Barns (Deputy Chair) Dr. Neil Barns is a Tertiary Education and Management Consultant with vast higher education experience as the former Chief Executive of Christchurch Polytechnic Institute of Technology. He is Deputy Chair of the Waiariki Institute of Technology and a board member of Education New Zealand. Neil has worked in secondary and tertiary education for 28 years and has seen education transform people’s lives. He says that it is critical that people in the Bay have access to high quality, relevant and affordable education at all levels and believes Bay of Plenty Polytechnic has a vital role to play in the social and economic development of the Bay. Paul Bowker Local properly developer and hotelier Paul Bowker is President of the Tauranga Chamber of Commerce and Chair of Tourism Bay of Plenty. Paul is a committed advocate of personal lifelong learning and believes learning and education is vital to the development and betterment of our community. He says that the Polytechnic plays an intrinsic role in this regard as well as in the economic development of our region. Paul sees the ability to facilitate and support this endeavour as both a pleasure and a privilege. Rahera Ohia Rahera Ohia was raised in Waitao (Welcome Bay) under the shadow of Kopukairoa. She is currently the Chief Executive and Lead Negotiator for Te Au Maro o Ngati Pukenga, which is the entity responsible for Treaty settlement negotiations for Ngati Pukenga. She was also a public servant for some 18 years, based mostly in Wellington.

Dr. Bryan Gould Dr. Bryan Gould is current Chair of the National Centre for Tertiary Teaching Excellence, the New Zealand National Commission for UNESCO and the Eastern Bay Primary Health Alliance. He previously was the Vice Chancellor of the University of Waikato (1994 – 2004). Paul Logan ‘Need a Nerd’ Managing Director Paul Logan has spent 20 years in the motor industry and has seen the benefits of good vocational training with many apprentices achieving solid careers with fabulous futures. He has a keen interest in accessibility to tertiary education for people in the wider Bay area and the availability of quality learning at all tertiary levels. Paul sees the Polytechnic partnership with the University of Waikato and Awanuiarangi as vital to quality sustainable tertiary education in the area and key to enhancing our position regionally, nationally and internationally. Sylvia Willison Sylvia Willison, of Ngati Ranginui iwi and Ngai Tamarawaho hapu, is the Kaunihera Mäori representative. She is one of the founders of the Huria Management Trust and its current Chief Executive. Sylvia brings more than 20 years of service in the Tauranga and Western Bay Communities to the Polytechnic Council. Graham Young Graham Young brings many years experience in education as former principal of Tauranga Boys’ College (1984 – 2008). Graham is currently National Secondary Coordinator of New Zealand Aspiring Principals programme, and is a leadership and management consultant for the Institute of Professional Studies at the University of Waikato.

Communication / Reporting

Internal Audit

Council holds monthly meetings to examine institutional performance and strategic direction, to monitor and report on management activities and to ensure that the affairs of Bay of Plenty Polytechnic are being conducted in accordance with legislative mandate and Council objectives. The Council also encourages staff to adhere to the institution’s Professional Code of Conduct.

Bay of Plenty Polytechnic Council has delegated responsibility for the internal audit function to the Audit and Risk Committee. The Audit and Risk Committee is responsible for ensuring policies and procedures are established, that external disclosure is appropriate, internal and external reporting procedures are effective and that the organisation’s systems and activities are monitored.

Division of Responsibility between Council and Management

Risk Management

Key to the efficient operation of Bay of Plenty Polytechnic is the clear division between the role of Council and that of management. Bay of Plenty Polytechnic Council concentrates on setting policy and strategy and then reviews progress against these. Management is concerned with implementing Council policy and strategy. While many of the Council’s functions have been delegated, the overall responsibility for maintaining effective systems of internal control ultimately resides with Council. Internal control includes the policies, systems and procedures established to provide measurable assurance that the specific objectives of the Council will be achieved. Both Council and management have acknowledged their responsibility by signing the Statement of Responsibility contained in this report.

Staff and Student Voice As a consequence of the recent governance changes, the staff and student representatives on Council have been removed. We consider it essential however, that a conduit exists for staff and student issues and opinion of a Governance nature to be heard by Council. Therefore a Student Forum and a Staff Forum has been established meeting four times per year. The Student Forum is made up of four student representatives, one elected from each school, one representative each from Council, the Executive and Facilities. The Staff Forum consists of two academic and two non- academic staff representatives, elected by all Polytechnic staff, one representative from Council and one from the executive team.

Council is ultimately responsible for the management of risks to Bay of Plenty Polytechnic and, with the Chief Executive, has developed a comprehensive risk management plan. The plan incorporates assessment of risk to the institution’s operation and long-term viability and appropriate actions to monitor and mitigate that risk. Bay of Plenty Polytechnic maintains a Strategic Risk Register that identifies and registers key strategic risks and is reviewed and reported on twice a year by portfolio owners and members of the senior management team. Risks are assessed based on impact (or consequence) and likelihood. The Register includes actions to manage the risk through elimination or actions to lessen or minimise.

Legislative Compliance Council acknowledges its responsibility to ensure the Polytechnic complies with all legislation and has delegated responsibility to the Chief Executive for the development and maintenance of a compliance register and awareness amongst staff of legislative requirements that are particularly relevant to them or their positions.

Ethics Council has consistently adopted a code of conduct for staff and compliance is evidenced through such means as trends in complaints and disciplinary actions, internal audit reports and student / staff evaluations.

Statement of Responsibility For the year ended 31 December 2012 In the financial year ended 31 December 2012, the Council and management of Bay of Plenty Polytechnic were responsible for: â&#x20AC;˘ the preparation of the financial statements and the judgements used therein â&#x20AC;˘ establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting. In the opinion of Council and management of Bay of Plenty Polytechnic, the financial statements for the financial year reflect fairly the financial position and operations of Bay of Plenty Polytechnic. Signed: 30 April 2013

Ian Turner Council Chairperson

Dr. Alan Hampton Chief Executive

Anthony Robertson Corporate Services Director

Independent Auditor’s Report To the readers of Bay of Plenty Polytechnic’s financial statements and non-financial performance information for the year ended 31 December 2012

An audit also involves evaluating:

The Auditor-General is the auditor of Bay of Plenty Polytechnic (the Polytechnic). The Auditor-General has appointed me, Clarence Susan, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements and non-financial performance information of the Polytechnic on her behalf.

• the appropriateness of accounting policies used and whether they have been consistently applied; • the reasonableness of the significant accounting estimates and judgements made by the Council;

We have audited:

• the appropriateness of the reported service performance within the Polytechnic’s framework for reporting performance;

• the financial statements of the Polytechnic on pages 39 to 69, that comprise the statement of financial position as at 31 December 2012, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information; and

• the adequacy of all disclosures in the financial statements and non-financial performance information; and • the overall presentation of the financial statements and nonfinancial performance information. We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and non-financial performance information. Also we did not evaluate the security and controls over the electronic publication of the financial statements and non-financial performance information.

• the non-financial performance information of the Polytechnic in the statement of service performance on pages 28 to 34. Opinion In our opinion:

We have obtained all the information and explanations we have required and we believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.

• the financial statements of the Polytechnic on pages 39 to 69: – comply with generally accepted accounting practice in New Zealand; and

Responsibilities of the Council

– fairly reflect the Polytechnic’s: • financial position as at 31 December 2012; and

The Council is responsible for preparing financial statements that:

• financial performance and cash flows for the year ended on that date;

• comply with generally accepted accounting practice in New Zealand; and • fairly reflect the Polytechnic’s financial position, financial performance and cash flows.

• the non-financial performance information of the Polytechnic on pages 28 to 34 fairly reflects the Polytechnic’s service performance achievements measured against the performance targets adopted in the investment plan for the year ended 31 December 2012.

The Council is also responsible for preparing non-financial performance information that fairly reflects the Polytechnic’s service performance achievements measured against the performance targets adopted in the investment plan.

Our audit was completed on 30 April 2013. This is the date at which our opinion is expressed.

The Council is responsible for such internal control as it determines is necessary to enable the preparation of financial statements and non-financial performance information that are free from material misstatement, whether due to fraud or error. The Council is also responsible for the publication of the financial statements and non-financial performance information, whether in printed or electronic form.

The basis of our opinion is explained below. In addition, we outline the responsibilities of the Council and our responsibilities, and we explain our independence. Basis of opinion We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the financial statements and non-financial performance information are free from material misstatement.

The Council’s responsibilities arise from the Education Act 1989 and the Crown Entities Act 2004. Responsibilities of the Auditor We are responsible for expressing an independent opinion on the financial statements and non-financial performance information and reporting that opinion to you based on our audit. Our responsibility arises from section 15 of the Public Audit Act 2001 and the Crown Entities Act 2004.

Material misstatements are differences or omissions of amounts and disclosures that, in our judgement, are likely to influence readers’ overall understanding of the financial statements and non-financial performance information. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.

Independence When carrying out the audit, we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the External Reporting Board.

An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial statements and non-financial performance information. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the financial statements and non-financial performance information, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Polytechnic’s preparation of the financial statements and non-financial performance information that fairly reflect the matters to which they relate. We consider internal control in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Polytechnic’s internal control.

Other than the audit, we have no relationship with or interests in the Polytechnic.

Clarence Susan Audit New Zealand On behalf of the Auditor-General Tauranga, New Zealand

Equal Opportunities

Bay of Plenty Polytechnic is committed to the principle of equal employment opportunities for all and recognises the need to give practical effect to its responsibilities as an employer and an educational provider. We do not accept unfair discrimination on the grounds of gender, ethnicity, disability, marital status, sexual orientation, age, religion, harassment or on any other grounds.

Equal Employment Opportunities 2012 EEO initiatives included:

Health & Wellbeing of Employees

Flexible Work Arrangements

We value the contribution our employees make to ensuring student success, and recognise that there is a measurable link between a person’s health and lifestyle and their productivity at work. To succeed, our business needs the competitive advantage of highly trained, motivated and well employees.

We recognise that there are benefits in supporting flexible working practices, implementing familyfriendly initiatives, and assisting employees to achieve work-life balance. Flexible arrangements that are in place include job share, flexible hours, and working from home.

Our ongoing commitment to employee wellness programmes is now consolidated by our participation in the WorkWell programme, giving us the confidence to maintain and grow a high standard of workplace wellness. We achieved Bronze Accreditation in the WorkWell Toi Te Ora - Public Health Service programme in 2012.

Parental Leave

Wellness initiatives included the Employee Assistance Programme, free health checks, free hearing and lung function tests, fresh fruit, workstation assessments for all new employees and free access to the Aquatic Centre swimming pool for employees in the early morning and during lunch time breaks. Wellness week was a focus for additional wellbeing activities including eye sight checks, free back massages and presentations on skin cancer, maintaining motivation and injury management.

Our institution aims to extend our dual heritage commitment to the principles and practices of Te Waka Hourua (‘the twin hulled waka’) across the whole organisation. The powhiri marks the beginning of the journey for our students and employees. New staff members are introduced to biculturalism through our compulsory bicultural training and teaching staff are continually immersed in Mäoritanga and biculturalism during their participation in the Poutiriako adult education programme. The Matauranga Facilitator is available to support staff and students around Matauranga Mäori, tikanga, te reo and cultural safety.

We also successfully maintained our Tertiary Status for the ACC “Workplace Safety Management Practice” (WSMP) audit in December 2012. The WSMP audit provides clear evidence of our commitment to wellbeing and safety for all across the Polytechnic.

Supporting Dignity at Bay of Plenty Polytechnic We are committed to protecting the dignity of our students and employees. We expect all members of the Polytechnic to treat each other with respect, courtesy and consideration. In 2012 we created a dedicated contact network to ensure that both our students and employees have trained people with whom they can raise any issues regarding, bullying, discrimination or harassment. This contact group is committed to supporting dignity and an organisation that is free from harassment and bullying.

For all permanent employees employed at the Bay of Plenty Polytechnic, parental leave provisions are over and above statutory minimum requirements, providing additional support to employees for family commitments in the form of extra financial support.

Dual Heritage/Biculturalism

Our Dual Heritage day provides specific training for employees on bicultural teaching practices, te reo and an introduction to the Tauranga Moana.

Supported Employment In 2012, we provided employment to one person who graduated from the Certificate in Work Skills (Supported Learning) Level 1 programme. This programme is aimed at people with an intellectual disability. Disability resources are available on campus and online with a nominated staff member to liaise with employees and students.

Equal Education Opportunities Bay of Plenty Polytechnic’s vision Eke Pänuku – reaching our potential together – continues to guide our efforts to provide equitable educational access, appropriate support services and barrier-free facilities for all learners. The tertiary education sector’s focus on improving the educational outcomes of priority groups – Mäori, Pasifika, and Youth – offers additional motivation to ensure that the Polytechnic is well positioned to maximise educational opportunities for those most in need. 2012 was an exciting year in this regard, with the institution taking a significant step forward in meeting the diverse needs of our learners, through the reconfiguration of learning support services to a more integrated and mutually supportive learning commons environment. Ako Awe, Bay of Plenty Polytechnic’s new approach to learning support provision, is a conceptual model where the energy of inspiration and enlightened engagement is applied uncompromisingly to the domains of both teaching and learning. Focused on the achievement of each and every learner, Ako Awe is unwavering in its resolve to identify and eliminate teaching and learning practices that cause or perpetuate inequality – particularly in regards to learner completion outcomes for priority groups. In practical terms, this has resulted in a shift to dedicated support in the form of school-based learning facilitators as well as access to knowledge facilitators for additional technical support in the Atea spaces (learning commons). This approach not only ensures that learning support provision permeates across the whole institution, but importantly, that learner voices are reflected in the shape and focus of activities undertaken throughout the year. While Ako Awe has only been in place for one year, learners are responding positively to the refocus of school-based learning facilitators. Teaching staff have also expressed an increased sense of confidence in having ready access to learning facilitators in their own school and additional support from other specialists such as the Matauranga Mäori and Equity Facilitators, particularly in priority programmes – those identified with the greatest opportunity for improvement. The Atea is also proving popular, with learners commenting on the energy, light and atmosphere of the space, as well as the accessibility of computers and the helpful staff. An exciting observation for staff has been the way in which learners are using the common areas to engage with each other and teaching staff, a positive sign that they are directing their own learning experiences. Based on learner feedback, Ako Awe staff are looking to make

improvements in some areas including cleanliness of shared spaces, quicker resolution of technical issues, and better communication and marketing of Ako Awe - roles, responsibilities and services. Bay of Plenty Polytechnic provides other support services, including: • Free health services at the Windermere and Bongard campuses - medical and counselling services as well as events promoting general health and wellbeing. • Scholarships and grants - $234,000 was distributed in 2012 through a variety of nominated scholarships and community grants. • Hardship assistance - $6,355 of hardship grants were distributed in the form of bus tokens, petrol (MTA) and supermarket vouchers. Staff also assisted learners through referrals to the local foodbank. • Disability and learning difficulties support – approximately 100 students accessed support through disability and equity staff. The most common areas of assistance sought were note taking, reader/writers for exams, and general study advice.

Mäori Learners A fundamental component of Bay of Plenty Polytechnic’s vision Eke Pänuku is acknowledging the dual heritage of New Zealand’s identity, thereby enhancing the unique characteristics and aspirations of our local communities. Te Waka Hourua, the double hull waka, encapsulates the Polytechnic’s philosophy of ensuring that this dual heritage permeates every part of the institution and its activities. In addition to strategies aimed at building the confidence of staff and learners to engage with ahuatanga and tikanga Mäori, Bay of Plenty Polytechnic is committed to providing resources and initiatives to better position Mäori learners to achieve comparable outcomes to the general learner population. Moreover, the Polytechnic recognises the need to ensure that Mäori learners are free to learn and live the fullness of life as Mäori, as well as being able to access knowledge and experiences to actively participate in all sectors of society. This approach continues to show results with Mäori learners contributing to 32% of the Polytechnic’s EFTS in 2012, a slight increase on 2011’s result (30%). We take confidence from this as a positive indicator of the continuing relevance of the Polytechnic to Mäori, especially considering that Mäori account for just over 16% of the population in the Western Bay of Plenty sub-region.

Mäori continue to be attracted to programmes that align with the developmental aspirations of whanau, hapu, and iwi. It is pleasing to note that of the 5 fulltime programmes with the largest numbers of Mäori learners, programme completions ranged from 85% to 92%. • Nga Okawa a Tangaroa • Youth Guarantee • Certificate in Health Care Assistance • Certificate in Commercial Road Transport • National Certificate in Beauty Services

1 Completion data differs from that in the Statement of Service Performance. The percentages in the table represent the proportion of learners that completed programmes in 2012.

The New Zealand Diploma in Business also continues to have a significant number of Mäori enrolments, with programme completions of 68%.

Bay of Plenty Polytechnic Staff Research Outputs 2012 CHAPTERS IN BOOKS Hamerton, H. & Fraser, C. (2012). Writing retreats to improve skills and success in higher qualifications and publishing. In Good Practice Publication Grants e-book, Ako Aotearoa Centre for Tertiary Teaching Excellence. Available at http://akoaotearoa.ac.nz/ako-hub/good-practice-publication-grants-e-book/writing-retreats

PAPERS IN JOURNALS/PERIODICAL International Journal (Refereed) Finlayson, F., Winwood, P. W., & Rolleston, A. (2012). Does training at aerobic threshold improve lactate profile and performance of club rowers. Poster presentation at the 2012 Sports and Exercise Science New Zealand Conference, 30th November to 1st December, Massey University, Wellington. Fletcher, R., Meyer, L. , Anderson, H., Johnson, P. & Rees, M. (2012). Faculty and student conceptions of assessment. Higher Education, 64(1), 119-133. Doi: 10.1007/s10734-011-9484-1 Hamerton, H., Mercer, C., Riini, D., McPherson, B. & Morrison, L. (2012). Evaluating Mäori community initiatives to promote Healthy Eating, Healthy Action. Health Promotion International. doi:10.1093/heapro/das048 Honeyfield, J. & Fraser, C. (2011) Resource development for novice educators: The story of a New Zealand inter-institutional collaboration. International Journal of Teaching and Learning in Higher Education, 24(2), 264-271. http://www.isetl.org/ijtlhe/ Mercer, C., Riini, D., Hamerton, H., Morrison, L. & McPherson, D. (2012). Evaluating a healthy eating, healthy action program in small Mäori communities in Aotearoa, New Zealand. Australian Journal of Primary Health. http://dx.doi.org/10.1071/PY11096 Morgan, A. & Neal, L. (2012). Aspects of reproductive ecology and benthic-pelagic coupling in the subantarctic sea cucumber Pseudostichopus mollis (Theel). Continental Shelf Research. http://dx.doi.org/10.1016/j. csr.2012.04.013 Morgan, A. (2012). Use of a growth model to estimate size at age in the temperate sea cucumber Australostichopus mollis. SPC Beche-de-mer Information Bulletin, 32. March, 24-32. Sargisson, R.J., Hunt, S., Hanlon, T. Smith, K. & Hamerton, H. (2012). Volunteering: A community response to the Rena oil spill in New Zealand. Journal of Contingencies and Crisis Management, 20(4), 208-218. doi: 10.1111/1468-5973.12001 Winwood, P. W., Hume, P., Keogh, J. W. L. & Cronin, J. B. (2012). Retrospective injury epidemiology of strongman competitors. Poster presentation at the 2012 New Zealand Strength and Conditioning Conference, 22nd & 23rd November, AUT, Auckland. Winwood, P. W., Keogh, J. W. L., Harris, N. K., & Weaver, L. M. (2012). Interrelationships between strength, anthropometrics and strongman performance in novice strongman athletes. Journal of Strength and Conditioning Research, 26(2), 513-522. National Journal (Refereed) Dudson, M., Cummings, G. & Fraser, C. (2012). An investigation into the sport needs and preferences of youth aged 13-18 years in a semi-rural community. Southern Institute of Technology Journal of Applied Research. http:// sitjar.sit.ac.nz/Pages/Publications.aspx?year=2012 Fraser, C. & Simpson, P. (2012). Offshore-onshore: How international students’ expectations of the New Zealand academic environment compare to their lived experience. Navigating the River He Waka Eke Noa: Journal of Association of Tertiary Learning Advisors Aotearoa/New Zealand, Vol 7, pg 1-15. Tonkin, J. D., L. A. H. Wright, and B. O. David. 2012. Mussel spat ropes assist redfin bully (Gobiomorphus huttoni) passage through experimental culverts with hydrological barriers. Water 4:683-689.

CREATIVE OUTPUTS Armstrong, E. (2012). Exhibitor at Minis: Group exhibition of small works. Gallery 59, Tauranga, November. Armstrong, E. (2012). Finalist in the Miles Art Award, Contemporary art competition for the Bay of Plenty region, Tauranga Art Gallery, Tauranga, September. Armstrong, E. (2012). Exhibitor at the Art of Abstract Group exhibition of abstract art, Creative Tauranga, Willow Street, Tauranga, August. Bishop, D. (2012). Performance of four original compositions: Back road to Vegas, Paperbag princess, Soaked through & All on my own. Cornerstone Pub, Tauranga, 17th December. Bishop, D. (2012). Four song Demo EP: Back road to Vegas, Leather lounge motel, Jim’s lucky accident, House by the highway. Dinsdale, D., Shepherd, D. & Crombie, P. (2012). New York grunge. Fashion show at Rooftop garden and festival of arts. Bay of Plenty Polytechnic, Tauranga, 5-11 November. Dinsdale, D. (2012). Finalist / Denim Award - Designs that display an innovative and creative use of denim. Hokonui Fashion Design Awards, Gore, 27-28 July. Shepherd, D. (2012). City Lolita. 24th Brancott Estate World of Wearable Art (WOW) Awards, Wellington, 27 September – 7 October. Shirley, A. (2012). The dark room. Photographic exhibition at Rooftop garden and festival of arts. Bay of Plenty Polytechnic, Tauranga, 5-11 November. Steer, L., Armstrong, E. & Cottongarden, B. (2012). Garden art exhibition. Rooftop garden and festival of arts. Bay of Plenty Polytechnic, Tauranga, 5-11 November. Steiner, M. (2012). Curation of movie poster exhibition at Rooftop garden and festival of arts. Bay of Plenty Polytechnic, Tauranga, 5-11 November.

CONFERENCE PRESENTATIONS Paper in published refereed international conference proceedings Anderson, H. & Maurice-Takerei, L. (2012) Practice based research and critical pedagogy– rethinking teacher education for vocational educators. Paper presented at the Australian Vocational Education and Training Research Association Conference, Rydges Capitol Hill, Canberra, 12 – 13 April. Available at www.avetra.org.au/annual-conference/conference2012-papers Morgan, K. & Dench, P. (2012). Export of reef-derived sediments on Vabbinfaru reef platform, Maldives. Paper presented at the 12th International Coral Reef Symposium, Cairns, Australia, 9-13 July. Available at http://www.icrs2012.com/proceedings/manuscripts/ ICRS2012_1A_3.pdf Paper in published refereed New Zealand conference proceedings Anderson, H. (2012). Whose future? Developing bridging and foundation programmes. Paper presented to Te Ara Whakamana: Pathways, transitions and bridges to tertiary education forum, Wellington, 4-5 July. http://akoaotearoa.ac.nz/download/ng/file/group-4/whose-future.pdf

Bay of Plenty Polytechnic Staff Research Outputs 2012 continued CONFERENCE PRESENTATIONS

continued

Unpublished international conference presentation with peer-reviewed abstract Dutta, D & Miyanami, R (2012). Impact of ungulates on regeneration of plant species in forest ecosystems in northern New Zealand. Poster presentation at the Ecological Society of Australia Conference, Melbourne, December 3-7. Honeyfield, J. (2012). The E.T. Factors – An alignment model to assist in assessing potentially effective teaching faculty. A paper presented at the 2012 Assessment Institute, Indianapolis, USA, October 28-30. Muncaster, S. (2012). Effects of gonadotropin releasing hormone analogue and diet on spawning in captive reared yellowtail kingfish, Seriola lalandi. Paper presented at the World Aquaculture Society Conference, Prague, Czech Republic, 1 – 5 September. Unpublished national conference presentation with peer-reviewed abstract Anderson, H. (2012). The past, the present and the future of bridging and foundation educators in New Zealand. Where to from here? Paper presented to Foundation and Bridging Educators New Zealand Meeting, 19 - 20 April. Anderson, H. (2012). Learning space design: Does it change the learning? Paper presented to NZARE Annual Conference, Hamilton, 28 - 29 November. Bold, G. (2012). Social media as a means for student engagement: Meeting students in their own space. Paper presented at Shar-e-Fest 2012, Waikato Institute of Technology, Hamilton, 1-2 October. Bold, G. (2012). The future of logistics and transport. What is the research trying to tell us, and the NZ context. Paper presented at the Tauranga Transport and Logistics Forum Unlocking the North Island freight network for growth. Bay of Plenty Polytechnic, Tauranga, 16 November. Finlayson, F., Winwood, P. W., & Rolleston, A. (2012). Does training at aerobic threshold improve lactate profile and performance of club rowers. Poster presentation at the 2012 New Zealand Sports Medicine and Science Conference, 30 November – 1 December, Massey University, Wellington. Hamerton, H.R. (2012). Sharing good practice: Building capacity in self-evaluation in small tertiary education organizations. Paper presented at the anzea Conference Evaluation in the real world: Relationships, roles, responsibilities and results, 8th – 12th July, University of Waikato, Hamilton. Scott, M. (2012). Incorporating technology-enhanced learning (TEL) in the electronics lab. Paper presented at WCELfest2012, University of Waikato, Hamilton, 9th February. Winwood, P. W., Hume, P., Keogh, J. W. L. & Cronin, J. B. (2012). Retrospective injury epidemiology of strongman competitors. Poster presentation at the 2012 New Zealand Strength and Conditioning Conference, 22nd & 23rd November, AUT, Auckland.

COMMISSIONED REPORT FOR EXTERNAL BODY Hamerton, H. (2012). Guiding and supporting learners in Western Bay of Plenty Private Training Establishments: Principles for good practice. A report for Ako Aotearoa, the New Zealand National Centre for Tertiary Teaching Excellence. Sharp, D. & Tully, D. (2012). Lake Aniwhenua submerged macrophyte survey. A reported for Bay of Plenty Energy.

PEER ESTEEM Editorial Board membership Hamerton, H. Journal of Community and Applied Social Psychology. Honeyfield, J. Nursing Praxis in New Zealand. Published by the New Zealand College of Nurses. Research Related Awards, Prizes, Fellowships Shepherd, D. (2012). City Lolita. Winner of the Shell Sustainability Award in the Avante Garde section at the 24th Brancott Estate World of Wearable Art (WOW) Awards, Wellington, 27 September â&#x20AC;&#x201C; 7 October. Muncaster, S. Bay of Plenty Polytechnic Research Award. Membership of Research Collaborations, Consortia Muncaster, S. Member of a collaborative research team with NIWA, Whangarei conducting research on the effects of gonadotropin releasing hormone analogue and diet on spawning in captive reared yellowtail kingfish, Seriola lalandi. Contribution to research/scholarship locally Hamerton, H.R. (2012). Invited workshop on qualitative data analysis at the Waiariki Institute of Technology writersâ&#x20AC;&#x2122; retreat, 27th June, Waiora Spa Resort, Rotorua.

FACILITATING RESEARCH/DISCIPLINE-BASED NETWORKS Organising/hosting national or local conference/symposium/exhibition Bold, G. (2012). Organiser of the Tauranga Transport and Logistics Forum Unlocking the North Island freight network for growth. Joint Transport Forum with Lincoln University, Bay of Plenty Polytechnic, Chartered Institute of Logistics & Transport (CILT ) and Eastern Asian Society of Transport Studies (EASTS). Bay of Plenty Polytechnic, Tauranga, 16 November. Carle, J. & Shaw, L. (2012). Organisers of eLearning Day: Engage, enrich, empower. Bay of Plenty Polytechnic, Tauranga, 16th February. Hamerton, H. & Tuagalu, C. (2012). Organisers of Understanding Pasifika sport and recreation in New Zealand: Tapping into new knowledge. Symposium hosted by Bay of Plenty Polytechnic 2nd July, Bongard Centre, Tauranga. Stewart, M., Steer, L., Armstrong, E., Cottongarden, B., Steiner, M., Shirley, A., Recoules, G., Bishop, D., Dinsdale, D., Shepherd, D., Simon, A-M., & Crombie, P. (2012) Organisers of Rooftop garden and festival of arts. Bay of Plenty Polytechnic, Tauranga, 5-11 November.

GENERATION OF EXTERNALLY FUNDED RESEARCH Over $100,000 Tully, D., Gregor, K. & Muncaster, S. Rena Long-term environmental recovery plan. University of Waikato. $141,920. Less than $50,000 Hamerton, H. & Fraser, C. Ako Aotearoa Centre for Tertiary Teaching Excellence Good Practice Publication Grant. $3,000. Hamerton, H. Kaituna River rediversion: Social and recreational use patterns. Bay of Plenty Regional Council. $9,000. Honeyfield, J. & Fraser, C. Goalposts project. Ako Aotearoa Centre for Tertiary Teaching Excellence. $10,000. Sharp, D. & Tully, D. Lake Aniwhenua submerged macrophyte survey. Bay of Plenty Energy. $6,000.

Statement of Service Performance Key Performance Indicators for Bay of Plenty Polytechnic Investment Plan 2011-2013 Bay of Plenty Polytechnic aspires to deliver excellent and relevant programmes to our students with a view to building their capability to contribute to their families, communities and workplaces. Through our Te Waka Hourua strategy we create a highly effective dual heritage focus with the goal of ensuring that Mäori achievement is progressing towards parity with all groups of students. Our very successful Youth Strategy, targeted at meeting the needs of young people in the region, has created high levels of participation and success for under 25s. We look forward in 2013 to creating a step change in our learning and teaching with a greater emphasis on learning technology, interactive pedagogies and Professional Learning for our teaching staff. We will grow the already extensive engagement with the region and look to further strengthen our business practices.

We note that significant in our success has been the commitment and capability of our staff, the continual building of engagement with industry and a willingness to innovate. In the Investment Plan 2011-2013, negotiated with the Tertiary Education Commission (TEC), Bay of Plenty Polytechnic established a number of objectives to be achieved in 2012. These are reported on in detail in the following pages. The measures established by TEC are used where possible to ensure that we are able to implement a continuous improvement approach to organisational development that is based on the evidence of our outcomes. Please note that results are based on data taken directly from our Student Management System as at 21 January 2013. Until TEC upload the Polytechnic’s educational performance files onto the Workspace portal, these results should be considered interim. It is also important to note that data on course and qualification completions may change when 2012 data is finalised in the April Single Data Return (SDR). The parameters of the progression indicator require TEC to calculate this information, which will happen following the April SDR.

The statistics and statements accompanying the comprehensive array of ‘key performance indicators’ in many regards do not always portray the importance and essential nature of our achievement at a ‘people’ and ‘community’ level. The institution has an over-riding commitment to removing barriers in the creation of opportunity for all our people to embark and succeed in tertiary study relevant to their needs and their aspirations. Additionally, the intellectual capital and experience present within our staff, and the facilities and equipment within the institution, are there to support and contribute to the dynamic development of our industries and communities. This is evidenced in the following snapshots.

Rena

Youth

In partnership with community, our ongoing monitoring contributed to development of systems and processes to much better prepare New Zealand in the event of a repetition of such a disaster.

Part of the Bay of Plenty Polytechnic Youth Strategy has been enabled by Youth Guarantee funding. Importantly whilst the success rates for all students continue to improve, the success rate for under 25 year old students now exceeds the rate for over 25 year old students.

Kawerau A frequent and incorrect assumption is often made about the mobility of our people to easily come to our campuses in Tauranga. Financial hardship and other responsibilities often make such movement impossible. We have therefore taken the educational opportunity to the student, in particular working with Tuwharetoa Trust in Kawerau to successfully deliver programmes in garment construction and beauty.

Titanium Industry Development Association (TiDA) A partnership to establish a new industry for New Zealand, one that is high value, sustainable and based on unique technology developed in Tauranga. TiDA is located on Bay of Plenty Polytechnic’s campus and training and project collaboration occurs with our engineering students and staff.

Mäori An effective partnership with Mäori is developing, not only learning in Te Ao Mäori context, delivered on Marae, but also using Kaumatua and Kuia in regard to ‘Matauranga’ Mäori in terms of programme delivery.

Plan EPI

Measure/Indicator

Actual 2011

Target 2012

Result as at 31 December 2012

Dual Heritage Te Waka Hourua

1 i

Enhance Mäori learner participation and achievement through:

Note that all measures are derived from SDR data where students have identified as Mäori.

increasing or sustaining overall participation rate

Mäori Equivalent full time students (EFTS) as a percentage of total EFTS

30%

29%

ACHIEVED - 32% Bay of Plenty Polytechnic continues to attract strong participation of Mäori students particularly as Mäori account for approximately 16% of the Western Bay of Plenty subregion’s total population.1 This is an outcome of our highly visible commitment to Te Waka Hourua which is infused into all aspects of the organisation.

Levels 1-3

Mäori EFTS enrolled in qualifications at Levels 1-3 as a percentage of total EFTS

18%

16%

ACHIEVED – 16% While the target is achieved this is down slightly from 2011, but the proportion of Mäori students in L4+ has shown an upward shift and this is a very positive change in line with our intention to build progressions.

Levels 4 and above

Mäori EFTS enrolled in qualifications at Levels 4 and above as a percentage of total EFTS

13%

ACHIEVED - 15% This shows an upward trend from 2011 and is a positive shift in the proportion of Mäori students enrolled in higher level qualifications i.e. L4+.

improving course completion rate to parity with non-Mäori outcomes at Levels 1-3

Successful course completion rate for Mäori in courses at Levels 1-3

77%

75%

ACHIEVED – 80% The focus on providing thorough student pastoral support alongside improving the effectiveness of programmes has contributed to this excellent result.

improving course completion rate to parity with non-Mäori outcomes at Levels 4 and above

Successful course completion rate for Mäori in courses at Levels 4 and above

71%

75%

NOT ACHIEVED – 73% This is a key target for the Polytechnic and we are very pleased with the upward trend even though the achievement was just short of the target. We have identified a small number of courses that have not met the target and improvement projects are underway. This process has proved very successful at sub L3 as noted above.

Statistics New Zealand - Census 2006

iii

Plan EPI

Measure/Indicator

Actual 2011

Target 2012

Result as at 31 December 2012

increasing the level of Mäori students completing qualifications at Levels 1-3

Successful qualification completion rate for Mäori enrolled in qualifications at Levels 1-3

74%

67%

ACHIEVED - 76% As noted above, the Polytechnic’s comprehensive approach to student pastoral support and continuous improvement of programmes ensures high levels of achievement for all students.

increasing the level of Mäori students completing qualifications at Levels 4 and above

Successful qualification completion rate for Mäori enrolled in qualifications at Levels 4 and above

57%

62%

ACHIEVED - 64% We note the continuing positive trend with achievement up by 7% from 2011.

increasing progression rates of Mäori students with data provided by TEC at Levels 1-3

Rate of progression for Mäori students from Levels 1-3

22%

28%

ACHIEVED – 30% 2012 has been a year of improving pathways and connections across programmes and this has been evident in the improved outcome.

increasing progression rates of Mäori students with data provided by TEC at Levels 4 and above

Rate of progression for Mäori students from Levels 4 and above

40%

28%

ACHIEVED – 34% While this outcome exceeds the target significantly there is more work to be done on progressions. The pathways approach noted above is being addressed in programme development at Level 4/5 with a specific focus on Mäori students and funded in our investment plan.

increasing retention rates of Mäori students with data provided by TEC at Levels 1-3

Rate of retention for Mäori students at Levels 1-3

68%

49%

ACHIEVED – 74% We work consistently to provide a learning environment that is positive for Mäori students through our commitment to Te Waka Hourua, the strength of our pastoral care systems, and the excellence and relevance of our programmes to employment outcomes.

increasing retention rates of Mäori students with data provided by TEC at Levels 4 and above

Rate of retention for Mäori students at Levels 4 and above

62%

60%

ACHIEVED – 66% - as above.

Plan EPI

Measure/Indicator

Actual 2011

Target 2012

Result as at 31 December 2012

Strategic Direction Objective – Performance Monitoring

2 i

iii

Teaching and Learning Increase learner progression and retention by: increasing the proportion of SAC funded students under 25 enrolled in qualifications at Level 4 and above

SAC EFTS for under 25 students enrolled at Level 4 and above as a percentage of total SAC EFTS for students enrolled at levels 4 and above

60%

64%

NOT ACHIEVED – 58% This was a target set above already satisfactory performance. The Polytechnic serves a wide age group of students and we achieve well in our focus on young people.

increasing the proportion of students under 25 enrolled in qualifications at Level 7 through partnerships (e.g. AUT, UoW)

EFTS for under 25 students enrolled through partnerships at Level 7 as a percentage of total SAC EFTS for students enrolled at Levels 4 and above

10%

ACHIEVED – 14% The Polytechnic’s strategy of working with university and ITP partners to provide effective pathways for students from polytechnic qualifications to degrees is highly successful for all age groups and increasingly so for those under 25.

increasing the progression rate of all SAC funded students from data provided by TEC at Levels 1-3

Rate of progression for SAC EFTS from Levels 1-3

22%

35%

ACHIEVED – 41%

increasing the progression rate of all SAC funded students from data provided by TEC at Levels 4 and above

Rate of progression for SAC EFTS from Levels 4 and above

increasing the retention rate of all SAC funded students from data provided by TEC at Levels 1-3

Rate of retention for SAC EFTS at Levels 1-3

62%

41%

ACHIEVED – 75% Our comprehensive approach to student pastoral support and continuous improvement of programmes ensures high levels of achievement for all students.

increasing the retention rate of all SAC funded students from data provided by TEC at Levels 4 and above

Rate of retention for SAC EFTS at Levels 4 and above

69%

64%

ACHIEVED – 71% As above, the approach to ensuring student success through comprehensive support and continuous improvement of programmes is demonstrating its effectiveness in these outcomes.

See 1.iv above. 34%

28%

ACHIEVED – 34% See 1.iv above.

Plan EPI

Enhance foundation skills and progression of learners in Levels 1-3 qualifications by:

foundation learning (FL) designated programmes are assessed using FL assessment tool Note: the FL tool is now titled the Literacy and Numeracy Assessment Tool (LNAT)

proportion of students assessed confirm progression at the opening assessment to assessment at programme terminus

Measure/Indicator

Actual 2011

Target 2012

Result as at 31 December 2012

FL designated programmes at Levels 1-3 assessed using FL assessment tool as a percentage of all FL designated programmes at Levels 1-3

95%

90%

ACHIEVED – 92% In 2012 Bay of Plenty Polytechnic implemented new processes to improve access and understanding of staff in using the LNAT. The snapshot assessment was used extensively during 2012 in an effort to address issues experienced in the previous year regarding the time required to complete the assessment. In 2013 our focus is on better monitoring, to ensure that staff in L1-L3 programmes schedule assessments in accordance with TEC guidelines.

Proportion of students who ‘progressed’ from opening assessment to assessment at programme terminus

50%

85%

NOT ACHIEVED – 57 % Although the target was not met, we have noted an improvement on the 2011 result. The implementation of the snapshot assessment has improved learner engagement with the assessment tool; however, staff have commented that negative learner attitude towards completing the assessment is continuing to have an impact on their scores. This is noticeable in the results of some students who achieved high scores in their pre assessment but showed significant regression in post assessments. In 2013, the Polytechnic will explore ways that staff can encourage students to adopt a positive approach towards completing pre- and postassessments and we will continue to evaluate the effectiveness of a range of strategies to build literacy and numeracy capability. A specific approach will be to establish a user group to share practice and to support continuous professional learning.

Plan EPI

Measure/Indicator

Actual 2011

Target 2012

Result as at 31 December 2012

Increase learner completion rates in:

all courses (SAC EFTS) at Levels 1-3

Successful course completion rate for all courses (SAC EFTS) at Levels 1-3

80%

78%

ACHIEVED - 83% Overall course completions show a very satisfactory stability in response to Polytechnic strategies for programme improvement.

all courses (SAC EFTS) at Levels 4 and above

Successful course completion rate for all courses (SAC EFTS) at Levels 4 and above

79%

78%

ACHIEVED - 79% Overall course completions show a very satisfactory stability in response to Polytechnic strategies for programme improvement.

all qualifications (SAC EFTS) at Levels 1-3

Successful qualification rate for all qualifications (SAC EFTS) at Levels 1-3

77%

70%

ACHIEVED - 81% This result shows an improvement on the 2011 result. The Polytechnic has developed our full-time programmes to ensure that they are structured coherently and provide clear pathways for students to complete in workable timeframes.

all qualifications (SAC EFTS) at Levels 4 and above

Successful qualification rate for all qualifications (SAC EFTS) at Level 4 and above

69%

73%

NOT ACHIEVED – 69% This result is partly influenced by the number of two year diplomas and parttime participation in our largest diploma, the Diploma of Business. Completions from programmes with external assessment are also not included in this result as they are not yet available e.g. Legal Executive Diploma. We have identified those programmes with completion rates below target and are addressing any programmes needing improvement.

students under age 25 in courses at Levels 1-3

Successful course completion rate for all courses at Levels 1-3 for students under 25

77%

78%

ACHIEVED – 82% We have established a Youth Strategy that ensures the needs of young students, especially school leavers, are well met and that the transition from school to polytechnic is effective following students’ experience in our schools partnership programmes.

students under age 25 in courses at Levels 4 and above

Successful course completion rate for all courses at Levels 4 and above for students under 25

79%

75%

ACHIEVED – 80% The Polytechnic has a significant proportion of its students as school leavers and students under 25. It has an active strategy for supporting these students and fostering their achievements and the success of this is reflected in the outcomes.

students under age 25 in qualifications at Levels 1-3

Successful qualification completion rate for all qualifications at Levels 1-3 for students under age 25

74%

73%

ACHIEVED – 79% We have established a Youth Strategy that ensures the needs of young students, especially school leavers, are well met and that the transition from school to polytechnic is effective following students’ experience in our schools partnership programmes.

iii

Plan EPI

Measure/Indicator

Actual 2011

Target 2012

Result as at 31 December 2012

students under age 25 in qualifications at Levels 4 and above

Successful qualification completion rate for all qualifications at Levels 4 and above for students under age 25

65%

73%

NOT ACHIEVED – 70% See 4iii above and note that this is a better result than for all students. The result is trending in the correct direction and we are developing a strategy around programme completions for all students including learning from our effective Youth Strategy.

Progressively increase International student enrolments up to 5% of total EFTS

International student EFTS as a percentage of total EFTS

2.4%

4% of total EFTS

NOT ACHIEVED – 2.1% During 2011 we acknowledged the lack of success in our existing approach to International students. The outcome has been the appointment of a new international manager December 2012, the development and implementation of a short term strategy to address process issues and the development of a longer term strategy to build numbers of international students in keeping with our goal to create an international /global experience for all students. We expect 2013 to be a year establishing effective practice with modest improvement in numbers and 2014 to be a year of more significant improvement.

Enhance business and financial performance through:

profitability – achieve an operating surplus as % of total revenue (covenant range 3-5%)

Operating surplus as a percentage of total revenue

5.2%

3.0%

EXCEEDED – our operating surplus for 2012 was 4.2% of total revenue.

gearing - total debt as a % of total capital assets (covenant range 5-10%)

Total debt as a percentage of total capital assets

0.0%

5.5%

ACHIEVED – no debt at 31 December 2012. All capital works have been financed from internal sources.

iii

Operative surplus plus gross interest coverage - achieve an operative surplus plus gross interest interest to gross interest to gross interest (covenant range >3.5 times)

751.6

3.6

ACHIEVED – negligible interest charges in 2012.

achievement of Investment Plan SAC EFTS

100.2%

100%

ACHIEVED – We achieved 102% of our Investment Plan SAC EFTS.

develop Capital Management System

Partially achieved medium

Systematic approach medium

PROGRESSING – during 2012 staff attended capital asset management workshops. There is a formal plan for the development of a Capital Asset Management Plan in 2013 together with a high level review of our asset management capability by May 2013.

maintain relevant and current Risk Management Matrix (RMM)

Achieved - RRM current for 2011

RMM ACHIEVED – the Risk Management current for Matrix continues to be reviewed 2012 and updated at least annually.

Actual SAC EFTS as a percentage of forecast SAC EFTS Awareness of Capital Management System

Currency of RMM

Financial Reports our performance

Financial Overview

Financial Overview The Polytechnic delivered a very good surplus for 2012 of $1.8m representing 4.2% of total income. Moreover, we continued to invest in the capital infrastructure of the Polytechnic providing high quality facilities and resources for our students and staff. During 2012, TEC continued to assess our Financial Performance as “Low Risk” under their Financial Monitoring Framework. Financial Performance 2012 2012 2011 2010 Actual Budget Actual Actual $’000 $’000 $’000 $’000 Income Government Funding 26,722 25,436 25,877 28,084 Tuition Fees 12,062 13,685 12,492 11,058 Other Income 4,692 4,120 4,669 4,321 Total Income 43,476 43,241 43,038 43,463 Expenditure Staffing Costs 26,024 25,692 25,391 24,578 10,619 11,594 11,015 10,212 Other Total Expenditure 36,643 37,286 36,406 34,790 Cash Operating Surplus 6,833 5,955 6,632 8,673 Asset Depreciation (4,995) (4,180) (4,320) (3,775) 1,838 1,775 2,312 4,898 Operating Surplus

The continued growth in income in 2012 is mainly attributable to the increase in the Quality Reinvestment funding we received from TEC. As a significant amount of this expenditure related to capital expenditure and prior year expenditure, this income has directly contributed to the overall surplus for 2012 exceeding budget. Tuition fees are down, both on budget and prior year, due to a lack of international students coupled with domestic student recruitment in lower level (lower fee) courses. The overall cash operating surplus is higher than both budget and 2011 actual – again due to the Quality Reinvestment funding received. Depreciation continues to rise as a result of the continued significant capital investment – benefiting both students and staff. The overall operating surplus as a % of income for 2012 is at a healthy 4.2% which is higher than budgeted (4.1%) – though this is lower than 2011 (5.4%) and 2010 (11.3%).

Financial Position 2012 2012 2011 2010 Actual Budget Actual Actual $’000 $’000 $’000 $’000 Assets Fixed Assets 91,012 86,111 82,217 Cash and Cash Equivalents 2,813 4,068 5,810 Other Current Assets 7,796 8,477 8,773 Total Assets 101,621 98,656 96,800 Total Liabilities (12,413) (13,880) (13,524) Net Assets 89,208 84,776 83,276

81,363 4,434 8,223 94,020 (12,991) 81,029

The increase in our fixed assets reflects the continued investment in the campus, infrastructure and the equipment of the Polytechnic, together with an increase in the valuation of land and buildings of $4m. This investment has been funded partly from the Quality Reinvestment Fund, but mainly from cash reserves. As a result of this capital expenditure (nearly $10m) exceeding the cash generated from operations ($7m) our cash reserves have reduced by around $3m. Overall, both our total assets and net assets have continued to grow and continue to provide the Polytechnic with a sound financial standing. Future Financially, the future for the tertiary sector will see: • Limited growth and probably reductions in government funded delivery • Reduction in one-off income streams like the Quality Reinvestment Fund • Inflationary pressures on all costs This will mean a squeeze on the financial viability of the Polytechnic if we do not improve the efficiency of our delivery and operations. We therefore need to reduce our costs per student without compromising quality or outcomes. Moreover, in order to meet the increasing capital demands, especially Campus Development ambitions, we need to generate cash resources. We have recognised these financial pressures and have already undertaken planning and efficiency measures for 2013. Moreover, until we know the outcome of the Campus Development Plan we are not intending any significant facilities development in 2013. That said, we will complete our investment in our new Student Management Information System (EbS4) and implement a new finance system (Technology One), together with maintaining the high quality of our resources for our students and staff. These actions will see both an improvement in the underlying operating performance of the Polytechnic and increase our cash resources, which will put the Polytechnic in an even stronger position to continue to serve the Bay of Plenty region and New Zealand.

Anthony Robertson Corporate Services Director

Five Year Performance Summary for the year ended 31 December 2012

<----------------------NZIFRS-------------------------> 2012 2011 2010 2009 2008 $'000 $'000 $'000 $'000 $'000

Revenue Government funding Student tuition fees Other income Total

26,722 12,062 4,692 43,476

25,877 12,492 4,669 43,038

28,084 11,058 4,321 43,463

30,906 9,349 3,830 44,085

22,942 7,292 3,295 33,529

Expenses Personnel Other expenses Crown asset depreciation Non-Crown asset depreciation

26,024 10,619 590 4,405

25,391 11,015 590 3,730

24,578 10,212 590 3,185

22,833 9,474 590 2,590

19,625 9,014 590 2,423

Total

41,638

40,726

38,565

35,487

31,652

Surplus ($'000)

$1,838

$2,312

$4,898

$8,598

$1,877

4.23% 2.03% 2.06% 0.0 0.48 $2,813 8% $0.98 $6,633 118% -$2,998 $1.93 $12,995 $8,122 $3,006 $28,391

5.37% 3.24% 2.78% 0.0 0.52 $5,810 16% $1.21 $6,721 119% $1,641 $1.18 $12,508 $7,798 $1,560 $25,242

11.27% 6.83% 6.04% 86.2 0.53 $4,434 12% $1.09 $7,042 120% -$2,129 $2.43 $11,430 $7,285 $2,718 $24,093

19.50% 13.25% 11.32% 75.1 0.58 $7,154 23% $1.11 $13,530 144% $1,804 $3.69 $10,931 $6,652 $3,612 $23,336

5.60% 3.21% 2.85% 8.7 0.51 $5,272 19% $1.19 $4,269 115% -$205 $1.48 $10,722 $6,648 $1,516 $22,354

Ratio Analysis Surplus as a % of total revenue Return on fixed assets Return on equity Times interest covered (:1) Operating revenue/fixed assets (:$1) Current monetary assets ($'000) Current monetary assets/operating cash outflows Quick ratio (:$1) Net cash flows from operations ($'000) Operating cash inflows/operating cash outflows (%) Net operating cash flows less net capex ($'000) Capital expenditure/depreciation (:$1) Net operating costs per EFTS ($'s) Personnel costs per EFTS ($'s) Capital expenditure per EFTS ($'s) Fixed assets per EFTS ($'s) Key Student and Staff Performance Indicators

2012

2011

2010

2009

2008

Achieved MoE EFTS Funded MoE EFTS International EFTS Other EFTS Total

2,865 2,837 67 272 3,204

2,897 2,847 81 278 3,256

3,060 2,969 71 243 3,374

2,872 2,675 78 296 3,247

2,565 2,619 63 324 2,952

Total student numbers

6,822

6,702

9,443

10,253

9,869

$8,180 $3,765 $12,105 86% 80% 78% 15.2% 192 196 0.98

$7,967 $3,837 $11,784 86% 80% 76% 7.7% 190 191 0.99

$8,141 $3,277 $11,601 85% 75% 73% 8.5% 183 192 0.95

$7,661 $2,880 $12,399 84% 75% 69% 10.7% 178 188 0.95

$7,558 $2,470 $10,242 87% 72% 71% 10.4% 167 174 0.96

MoE funds per funded EFTS ($'s) Fees per total EFTS ($'s) Education revenue per total EFTS ($'s) Student satisfaction (overall) Student completion Maori student completion Staff turnover Total academic staff (FTE) Total non academic staff (FTE) Academic staff FTE/non academic staff FTE (:1)

Statement of Financial Position as at 31 December 2012

Notes Assets Current Assets Cash and cash equivalents Trade and other receivables Prepayments Assets held for sale Total Current Assets

2012 Actual $'000

2012 Budget $'000

2011 Actual $'000

5 6 7 10

2,813 7,415 346 35 10,609

4,068 8,267 210 12,545

5,810 8,475 283 15 14,583

8 9 9 11

48 77,666 12,737 561 91,012

73 72,817 12,701 520 86,111

44 71,456 10,080 637 82,217

101,621

98,656

96,800

12 13 14 15

3,745 1,481 7,028 12,254

3,737 1,434 8,619 13,790

3,503 12 1,419 8,479 13,413

159 159

90 90

111 111

Total Liabilities

12,413

13,880

13,524

Net Assets

89,208

84,776

83,276

59,762 28,004 1,387 55

59,424 23,910 1,387 55

57,924 23,910 1,387 55

89,208

84,776

83,276

Non-Current Assets Other financial assets Property Plant and equipment Intangible assets Total Non-Current Assets Total Assets Liabilities Current Liabilities Trade and other payables Interest-bearing loans and borrowings Provisions Revenues in advance Total Current Liabilities Non-Current Liabilities Provisions Total Non-Current Liabilities

Equity General equity Revaluation reserve Other reserves Council created reserves

1a 1c 1e 1d

Total Equity The accompanying notes form part of these financial statements.

Statement of Comprehensive Income for the year ended 31 December 2012

Notes Income

2012 Actual $'000

2012 Budget $'000

2011 Actual $'000

Government Funding - EFTS - ITO's - Other Total Government Funding

3a EFTS 3a ITO 3a O/* 3a

23,436 211 3,075 26,722

23,426 236 1,774 25,436

23,081 235 2,561 25,877

Student Tuition Fees - Domestic - International Total Student Tuition Fees

3b Dome 3b Inter 3b

11,098 964 12,062

12,276 1,409 13,685

11,401 1,091 12,492

3c T/* 3c Acco 3c Divi 3c O/* 3c

1,453 660 2 2,341 4,456

1,349 458 2,076 3,883

1,617 550 1 2,158 4,326

236

237

343

43,476

43,241

43,038

26,024 4,496 6,116 4,772 223 41,631

25,692 5,463 6,003 4,000 180 41,338

25,391 4,156 6,856 4,124 196 40,723

1,845

1,903

2,315

128

Surplus

1,838

1,775

2,312

Other Comprehensive Income Property revaluations Property impairments Total Comprehensive Income

4,094 5,932

1,775

(65) 2,247

Other Income - Trading - Accommodation - Dividend - Other Total Other Income Finance Income - Interest

Total Income

Expenses Employee benefit expenses Consumables Other expenses Depreciation Amortisation Total Operating Expenses

4a 4b 4c 9 11

Surplus Before Finance Costs Finance costs

The accompanying notes form part of these financial statements. Explanations of major variances against budget and prior year are provided in note 23

Statement of Changes in Equity for the year ended 31 December 2012

General Equity $'000

Asset Revaluation Reserve $'000

Council Reserves $'000

Other Reserves $'000

Total $'000

Budget $'000

1,387 -

81,029 2,312 (65)

80,344 2,142 -

1,387

83,276

82,486

1,387 -

83,276 1,838 4,094

83,001 1,775 -

1,387

89,208

84,776

2011 Balance at 1 January 2011 Surplus/(deficit) Other comprehensive income

55,677 2,312 (65)

23,910 -

Balance at 31 December 2011

57,924

23,910

Balance at 1 January 2012 Total Surplus/(deficit) Other comprehensive income

57,924 1,838 -

23,910 4,094

Balance at 31 December 2012

59,762

28,004

55 55

2012

The accompanying notes form part of these financial statements.

55 55

Statement of Cash Flows for the year ended 31 December 2012

Notes

2012 Actual $'000

2012 Budget $'000

2011 Actual $'000

Cash Flows from Operating Activities Cash was provided from: Government funding Tuition fees Interest received Other services provided Total

26,700 11,885 265 4,052 42,902

24,263 14,625 237 4,000 43,125

25,890 12,351 314 4,392 42,947

Cash was disbursed to: Payments to employees Payments to suppliers Interest costs Total

25,922 10,347 36,269

26,500 10,422 128 37,050

25,256 10,970 36,226

6,633

6,075

6,721

158 2 160

40 40

10 1 11

Cash was applied to: Purchase of assets Purchase of intangible assets Total

9,631 147 9,778

6,000 1,787 7,787

5,080 229 5,309

Net Cash Flows from Investing

(9,618)

(7,747)

(5,298)

Net Cash Flows from Operating Activities Cash Flows from Investing Activities Cash was provided from: Sales of assets Dividends received Total

Cash Flows from Financing Activities Cash was applied to: EECA loan

Net Cash Flows from Financing

(12)

(47)

Net GST amounts paid are included in payments to suppliers

Statement of Cash Flows for the year ended 31 December 2012

2012 Actual $'000

2012 Budget $'000

2011 Actual $'000

(2,997)

(1,684)

1,376

5,810

5,752

4,434

2,813

4,068

5,810

3 1,089 3 1,072 646 2,813

1 997 2,070 1,000 4,068

3 156 3 2,070 2,000 1,578 5,810

Notes Net increase/(decrease) in Cash and Cash Equivalents Cash and cash equivalents at beginning of period Cash and Cash Equivalents at End of Period Represented by: Cash Westpac BNZ National Bank Kiwibank ASB Bank

Reconciliation from the Net Surplus/(deficit) to the Net Cash Flows from Operations Net Surplus/(deficit) for the Period

1,838

2,312

Adjustments for: Depreciation Amortisation Net (gain) / loss on disposal of property, plant and equipment Fair value (gain) / loss on investment Dividend received Interest accrued not paid

4,772 223 (99) (4) (2) 7

4,124 196 15 29 (1) 3

Changes in assets and liabilities (Increase) / decrease in trade and other receivables (Increase) / decrease in prepayments Increase / (decrease) in trade and other payables Increase / (decrease) in provisions Increase / (decrease) in revenue received in advance

1,060 (63) 242 110 (1,451)

(588) 53 (8) 131 455

Net Cash from Operating Activities

6,633

The accompanying notes form part of these financial statements.

6,721

Notes to the Financial Statements For the year ended 31 December 2012

Note 1

Reporting Entity Bay of Plenty Polytechnic is a Tertiary Education Institute (TEI) domiciled in New Zealand and is governed by the Crown Entities Act 2004 and the Education Act 1989 as a public tertiary institution. The primary objective of the Bay of Plenty Polytechnic is to provide tertiary education services for the benefit of the community and has designated itself as a public benefit entity for the purpose of New Zealand equivalents to International Financial Reporting Standards (NZ IFRS). The financial statements of Bay of Plenty Polytechnic for the year ended 31 December 2012 were authorised for issue in accordance with a resolution of the councillors on 30 April 2013.

Note 2

Summary of Significant Accounting Policies The following particular accounting policies that materially affect the measurement of financial performance and financial position have been applied:

Note 2a

Basis of Preparation The financial statements have been prepared in accordance with generally accepted accounting practice in New Zealand and the requirements of the Crown Entities Act 2004 and the Education Act 1989. Bay of Plenty Polytechnic is a public benefit entity for the purpose of complying with generally accepted accounting practice in New Zealand. The financial statements have been prepared on a historical basis, except for investment properties, non-current assets classified as held for sale and land and buildings that have been measured at fair value. The financial statements are presented in New Zealand dollars, being the functional currency of the Bay of Plenty Polytechnic. All values are rounded to the nearest thousand dollars ($'000).

Note 2b

Statement of Compliance The financial statements comply with applicable Financial Reporting Standards, which include New Zealand equivalents to International Financial Reporting Standards (NZ IFRS), and other applicable financial reporting standards, as appropriate for public benefit entities.

Note 2c

Revenue Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Bay of Plenty Polytechnic and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

Government grants

EFTS based government grants are recognised upon entitlement as indicated in the three year investment plan. Other government grants are recognised when eligibility to receive the grant has been established.

Student tuition fees

Revenue from student tuition fees is recognised over the period in which the course is taught by reference to the stage of completion of the course as at the balance date. Stage of completion is measured by reference to the days of course completed as a percentage of the total days for each course.

Research income

Funding received for research which will provide reciprocal benefits to the research funding provider is recognised as revenue on a percentage completion basis. The percentage of completion is measured by reference to the research expenditure incurred as a proportion to total expenditure expected to be incurred. Funding received which provides no reciprocal benefit to the research funding provider is recognised as revenue when the funding is received.

Notes to the Financial Statements For the year ended 31 December 2012

Donations, bequests and pledges

Donations and bequests are recognised as income when the right to receive the fund or asset has been established. Pledges are not recognised as assets or revenue until the pledged item is received.

Sale of materials

Revenue is recognised when the significant risk and rewards of ownership have passed to the buyer and can be measured reliably.

Interest and dividends

Revenue is recognised as the interest accrues to the net carrying amount of the financial asset. The effective interest method is used, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument. Dividends are recognised when the right to receive payment has been established. Note 2d

Borrowing Costs The Bay of Plenty Polytechnic has elected to defer the adoption of the revised NZ IAS 23 Borrowing Costs (Revised 2007) in accordance with the transitional provisions of NZ IAS 23 that are applicable to public benefit entities. Consequently, all borrowing costs are recognised as an expense in the period in which they are incurred.

Note 2e

Equity Equity is the community’s interest in Bay of Plenty Polytechnic and is measured as the difference between total assets and total liabilities. Public equity is disaggregated and classified into a number of reserves to enable clearer identification of the specified uses that Council make of its accumulated surpluses. The components of equity are: • • • •

Note 2f

general equity council created reserves asset revaluation reserve other reserves

Reserves Reserves are a component of equity generally representing a particular use to which various parts of equity have been assigned. Reserves may be legally restricted or created by the Bay of Plenty Polytechnic Council. Council Created Reserves are established by Council decision. The Council may alter them without reference to any third party or the Courts. Transfers to and from these reserves are at the discretion of Council. Asset Revaluation Reserve is based on revaluation of Plant, Property & Equipment as outlined in note 2m. The other reserves include an ITP Projects Reserve, which is a short term fund administered by the Tertiary Education Commission providing capital contribution towards upgrades of the Student Management System, the Financial Management/Human Resources Information System, the Capital Asset Management System, Video conferencing, Document Management Solution, connection to Kiwi Advanced Research and Education Network (KAREN), and the capital portion of the Quality Reinvestment Fund.

Note 2g

Cash and Cash Equivalents Cash and short-term deposits in the Statement of Financial Position comprise cash at bank and short-term deposits with an original maturity of three months or less. For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

Notes to the Financial Statements For the year ended 31 December 2012

Note 2h

Student Fees and Other Receivables Student fees and other receivables are recognised and carried at original receivable amount less an allowance for any uncollectable amounts. An estimate for Doubtful Debts is made when collection of the full amount is no longer probable. Bad debts are written off when identified.

Note 2i

Inventories Inventories are valued at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of activities less the estimated costs necessary to make the sale. The value of stocks of material on hand at balance date in the teaching, administration and service departments is not included in the financial statements, nor have such stocks been ascertained. It is considered that such stocks are not of material value and all purchases of class materials have been charged against income earned in the year.

Note 2j

Other Financial Assets All investments are initially recognised at cost, being the fair value of the consideration given. In the case of an investment not at fair value, this is recognised through profit or loss, including acquisition charges associated with the investment. After initial recognition, investments which are classified as “available for sale” are measured at fair value or cost in cases where the fair value can not be reliably measured. Gains or losses on “available for sale” investments are recognised as a separate component of equity until the investment is sold, collected or otherwise disposed of, or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is included in the Statement of Comprehensive Income. Investments that are intended to be held-to-maturity or those classified as loans and receivables, are subsequently measured at amortised cost using the effective interest method. Financial assets are classified into the following categories for the purposes of the measurement: • fair value through surplus or deficit • loans and receivables and • fair value through other comprehensive income Classification of the financial asset depends on the purpose for which the instruments were acquired.

Impairment of financial assets

At each balance date individual assets and groups of assets are assessed for objective evidence of impairment. Any impairment losses are recognised in surplus or deficit. Impairment of loans and receivables (including cash and cash equivalents and trade and other receivables) Impairment of a loan or a receivable is established when there is objective evidence that amounts due will not be able to be collected according to the original terms of the debt. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy and default in payments, are considered indicators that the asset is impaired. The amount of the impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted using the original effective interest rate. For debtors and other receivables, the carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognised in the surplus or deficit. When the receivable is uncollectable, it is written off against the allowance account. Overdue receivables that have been renegotiated are reclassified as current. For other financial assets, impairment losses are recognised directly against the instruments' carrying amount.

Notes to the Financial Statements For the year ended 31 December 2012

Impairment of financial assets at fair value through other comprehensive income

For equity investments, a significant or prolonged decline in the fair value of the investment below its cost is considered objective evidence of impairment. For debt investments, significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy and default in payments, are considered objective indicators that the asset is impaired. If impairment evidence exists for investments at fair value through other comprehensive income, the cumulative loss (measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in the surplus or deficit) recognised in other comprehensive income is reclassified from equity to the surplus or deficit. Equity instrument impairment losses recognised in the surplus or deficit are not reversed through the surplus or deficit. If in a subsequent period the fair value of a debt instrument increases and the increase can be objectively related to an event occurring after the impairment loss was recognised, the impairment loss is reversed in the surplus or deficit. Note 2k

Taxation The Bay of Plenty Polytechnic is not subject to income tax and therefore no taxation has been provided for.

Note 2l

Other Taxes Bay of Plenty Polytechnic accounts for GST on an invoice basis. Figures in the financial statements have been stated on a GST exclusive basis with the exception of: • Accounts payable and accounts receivable, which are stated GST inclusive. • Where GST is not recoverable, it is recognised as part of the related asset or expense. The net amount of GST recoverable from, or payable to, the Inland Revenue Department is included as part of receivables or payables in the Statement of Financial Position. Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to the Inland Revenue Department, are classified as operating cash flows.

Note 2m Property, Plant and Equipment

Measurement base

The measurement bases used for determining the gross carrying amount for each class of assets is as follows: • Bay of Plenty Polytechnic Land and Buildings are measured at fair value less subsequent accumulated depreciation and subsequent accumulated impairment losses. • Crown land and buildings are measured at fair value less subsequent accumulated depreciation and subsequent accumulated impairment losses. Assets in Crown title were included for the first time in Bay of Plenty Polytechnic’s financial statements in 1995. Although legal title has not been transferred, the Bay of Plenty Polytechnic has assumed most of the normal risks and rewards of ownership. Disposal of assets in Crown title is restricted in accordance with section 192 of the Education Act 1989 • plant and equipment, motor vehicles, and computer hardware are stated at cost less accumulated depreciation and any accumulated impairment in value. • The library collection is for current use and does not include heritage or special collections. It is stated at cost less accumulated depreciation and any accumulated impairment in value.

Notes to the Financial Statements For the year ended 31 December 2012

Depreciation

Depreciation is calculated on a straight-line basis over the estimated useful life of the asset as follows: Class of Asset Buildings Crown buildings Infrastructure Library books Plant & teaching equipment Office equipment Furniture & fittings Vehicles Computer hardware

Rate 1.0% - 4.0% 1.0% - 10.0% 2.0% - 10.0% 10.0% 5.0% - 20.0% 10.0% 6.5% - 10.0% 20% 20.0% - 33.0%

Impairment

The carrying values of plant and equipment other than those with future economic benefits that are not directly related to their ability to generate net cash are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. The recoverable amount of plant and equipment is the greater of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and risks specific to the asset. Impairment losses are recognised in the statement of comprehensive income in the other expenses line item. An impairment loss on a revalued asset is recognised directly against any revaluation surplus for that asset.

Revaluations

Following initial recognition at cost, land and buildings are carried at a revalued amount, which is the fair value at the date of the revaluation less any subsequent accumulated depreciation on buildings and accumulated impairment losses. Fair value is determined by reference to market-based evidence, which is the amount for which the assets could be exchanged between a knowledgeable willing buyer and a knowledgeable willing seller in an armâ&#x20AC;&#x2122;s length transaction as at the valuation date. Revaluation of property, plant and equipment is carried out on class of asset basis. Any net revaluation surplus is credited to the asset revaluation reserve included in the Equity section of the Statement of Financial Position unless it reverses a net revaluation decrease of the same asset previously recognised in the Statement of Comprehensive Income. Any net revaluation decrease as at the revaluation date is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Any accumulated depreciation as at revaluation date is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Assets acquired after revaluation are initially held at cost, being the fair value at the date of acquisition, less accumulated depreciation and any impairment until their subsequent revaluation. Upon disposal, any revaluation reserve relating to the particular asset being sold is transferred to equity. Independent valuations are performed with sufficient regularity to ensure that the carrying amount does not differ materially from the assetâ&#x20AC;&#x2122;s fair value at the balance date.

Additions

The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to the Bay of Plenty Polytechnic and the cost of the item can be measured reliably.

Notes to the Financial Statements For the year ended 31 December 2012

Work in progress is recognised at cost less impairment and is not depreciated. In most instances, an item of property, plant and equipment is initially recognised at its cost. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at fair value as at the date of acquisition.

Disposals

Gains and losses on disposals are determined by comparing the disposal proceeds with the carrying amount of the asset. Gains and losses on disposals are reported net in the surplus or deficit. When revalued assets are sold, the amounts included in property revaluation reserves in respect of those assets are transferred to general funds.

Non-Current Assets Held for Sale

Property, Plant and Equipment is re-classified as a non-current asset held for sale when its carrying amount will be recovered principally through a sale transaction rather than through continuing use. The re-classification takes place when the asset is considered to be available for immediate sale in its present condition subject only to the usual and customary terms of sale of such assets and the sale is considered highly probable within one year. Non-current Assets held for sale are not depreciated or amortised while they are classified as held for sale. Note 2n

Investment Properties An investment property is initially measured at its cost including transaction cost. Where an investment property is acquired at no cost or nominal cost, its cost is deemed to be its fair value as at the date of acquisition. Subsequent to initial recognition, investment properties are stated at fair value as at each balance date. Gains or losses arising from changes in the fair values of investment properties are recognised in the Statement of Comprehensive Income in the year in which they arise. Only properties held to earn profitable rentals or for capital appreciation are classed as investment properties. The properties owned by the Bay of Plenty Polytechnic do not fall under this specification.

Note 2o

Intangible Assets

Computer software

Computer software is separately acquired and capitalised at its cost as at the date of acquisition. After initial recognition, separately acquired intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses. The standard amortisation period for computer software is three to five years and the straight line method of amortisation is used.

Course development costs

Course development costs relate to development of educational courses. Any costs incurred internally are recognised as an expense in the Statement of Comprehensive Income in the year in which it is incurred. Where courses are purchased from external parties they are recognised at cost less subsequent amortisation and any impairment based on the discounted future cash flows expected to be generated by the asset. The standard amortisation period for course development costs is three years and the straight line method of amortisation from the commencement of the course is used. The amortisation period and amortisation method for the above two classes of intangible assets having a finite life is reviewed at each financial year-end. If the expected useful life or expected pattern of consumption is different from the previous assessment, changes are made accordingly. The carrying value of each class of intangible asset is reviewed for indicators of impairment annually. Intangible assets are tested for impairment where an indicator of impairment exists.

Research costs

Research costs are recognised as an expense in the Statement of Comprehensive Income in the year in which they are incurred.

Notes to the Financial Statements For the year ended 31 December 2012

Note 2p

Provisions Provisions are recognised when the Bay of Plenty Polytechnic has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each balance date and adjusted to reflect the current best estimate. Where it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision shall be reversed.

Note 2q

Trade and Other Payables Trade and other payables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method.

Note 2r

Employee Entitlements Provision is made in respect of Bay of Plenty Polytechnic's liability for annual leave, long-service leave and sick leave. Salaries, annual leave and other entitlements that are expected to be settled within twelve months of reporting date are measured at nominal values on actual entitlement basis at current rate of pay. Entitlements, which are payable beyond twelve months, such as long-service leave and sick leave, have been calculated on an actuarial basis. The calculations are based on: â&#x20AC;˘ â&#x20AC;˘

Note 2s

likely future entitlements accruing to staff, based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement and contractual entitlements information; and the present value of the estimated future cash flows. A discount rate of 5.5% and an inflation factor of 2.7% were used. The discount rate is based on the weighted average cost of capital for Bay of Plenty Polytechnic. The inflation factor is based on the expected long-term increase in remuneration for employees.

Interest Bearing Loans and Borrowings All loans and borrowings are initially recognised at cost, being the fair value of the consideration received net of transaction costs associated with the borrowing. After initial recognition, interest-bearing loans and borrowings are measured at amortised cost using the effective interest method. Amortised cost is calculated by taking into account any transaction costs and any discount or premium on settlement. Gains and losses are recognised in the Statement of Comprehensive Income when the liabilities are derecognised and as well through the amortisation process.

Note 2t

Leases Where Bay of Plenty Polytechnic is lessee Finance leases, which effectively transfer to Bay of Plenty Polytechnic substantially all the risks and benefits incidental to ownership of the leased item, are capitalised at the present value of the minimum lease payments. The leased assets are depreciated over the period Bay of Plenty Polytechnic is expected to benefit from their use. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are included in the Statement of Comprehensive Income as finance costs. Operating lease payments, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items, are included in the determination of the operating surplus in equal instalments over the term of the lease.

Notes to the Financial Statements For the year ended 31 December 2012

Where Bay of Plenty Polytechnic is lessor Finance leases, which effectively transfer from Bay of Plenty Polytechnic substantially all the risks and benefits incidental to ownership of the leased item, are recognised as a lease receivable at an amount equal to the net investment in the lease. Lease payments are apportioned between the finance charges and reduction of the lease asset so as to achieve a constant rate of interest on the remaining balance of the asset. Finance income from this activity is included in the statement of comprehensive income as other income. Operating leases, where the Bay of Plenty Polytechnic effectively retains substantially all the risks and benefits of ownership of the leased items, are recognised as assets in the Statement of Financial Position according to the nature of the asset. Lease income from operating leases are recognised as income in equal instalments over the term of the lease. Depreciation of operating lease assets is consistent with the Bay of Plenty Polytechnic's normal depreciation policy for similar assets. note 2u

Financial Instruments The Bay of Plenty Polytechnic includes all financial instrument arrangements in the Statement of Comprehensive Income using the concepts of accrual accounting. These instruments arise as a result of everyday operations and include: cash and bank, accounts receivable, accounts payable, investments and non-current liabilities. Revenues and expenses in relation to all financial instruments are recognised in the Statement of Comprehensive Income. The derecognition of a financial instrument takes place when the group no longer controls the contractual rights that comprise the financial instrument, which is normally the case when the instrument is sold, or all the cash flows attributable to the instrument are passed through to an independent third party.

note 2v

Budget Figures Budget figures used throughout this report are the budget figures approved by Council on 25 October 2011. The budget figures have been prepared in accordance with generally accepted accounting practice and are consistent with the accounting policies adopted by the Council for the preparation of the financial statements.

note 2w

Accounting Estimates Changes in the accounting estimates for deferred recognition of student fee income and the provision for doubtful debts have been made in the current period. In preparing these financial statements, the Bay of Plenty Polytechnic has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying value of the Bay of Plenty Polytechnic's assets within the next year, relate to the revaluation of land, buildings and infrastructure. Note 9 provides further information about the revaluation.

note 2x

Changes in Accounting Policies There have been no changes in accounting policies for the year ended 31 December 2012. The Bay of Plenty Polytechnic has adopted the following revisions to accounting standards during the financial year: FRS-44 New Zealand Additional Disclosures and Amendments to NZ IFRS to harmonise with IFRS and Australian Accounting Standards (Harmonisation Amendments). The purpose of the new amendments is to harmonise Australian and New Zealand accounting standards with source IFRS and to eliminate many of the differences between accounting standards in each jurisdiction. The Bay of Plenty Polytechnic was not required to make any adjustments for the year ended 31 December 2012 to comply with FRS-44 and the Harmonisation Amendments.

Notes to the Financial Statements For the year ended 31 December 2012

Standards, amendments, and interpretations issued but not yet effective that have not been early adopted and are relevant to the Bay of Plenty Polytechnic are: NZ IFRS 9 Financial Instruments will eventually replace NZ IAS 39 Financial Instruments: Recognition and Measurement. NZ IAS 39 is being replaced through the following three main phases: Phase 1 Classification and Measurement, Phase 2 Impairment Methodology and Phase 3 Hedge Accounting. Phase 1 has been completed and has been published in the new financial instrument standard NZ IFRS 9. NZ IFRS 9 uses a single approach to determine whether a financial asset is measured at amortised cost or fair value, replacing the many different rules in NZ IAS 39. The approach in NZ IFRS 9 is based on how an entity manages its financial assets (its business model) and the contractual cash flow characteristics of the financial assets. The financial liability requirements are the same as those of NZ IAS 39, except for when an entity elects to designate a financial liability at fair value through the surplus or deficit. The new standard is required to be adopted for the year ended 31 December 2016. However, as a new Accounting Standards Framework will apply before this date, there is no certainty when an equivalent standard to NZ IFRS 9 will be applied by public benefit entities. The Minister of Commerce has approved the new Accounting Standards Framework (incorporating a Tier Strategy) developed by the External Reporting Board (XRB). Under this Accounting Standards Framework, the Bay of Plenty Polytechnic is classified as a Tier 1 reporting entity and it will be required to apply full public sector Public Benefit Entity Accounting Standards (PAS). These standards are being developed by the XRB and are mainly based on current International Public Sector Accounting Standards. The effective date for the new standards for public sector entities is expected to be for reporting periods beginning on or after 1 July 2014. This means the Bay of Plenty Polytechnic expects to transition to the new standards in preparing its 31 December 2015 financial statements. As the PAS are still under development, the Bay of Plenty Polytechnic is unable to assess the implications of the new Accounting Standards Framework at this time. Due to changes in the Accounting Standards Framework for public benefit entities, it is expected that all new NZ IFRS and amendments to existing NZ IFRS will not be applicable to public benefit entities. Therefore, the XRB has effectively frozen the financial reporting requirements for public benefit entities until the new Accounting Standards Framework is effective. Accordingly, no disclosure has been made about new or amended NZ IFRS that exclude public benefit entities from their scope. Note 2y

Critical Judgements in Applying Accounting Policies Management has exercised the following critical judgements in applying accounting policies for the year ended 31 December 2012: Crown owned land and buildings Property in the legal name of the Crown that is occupied by the Bay of Plenty Polytechnic is recognised as an asset in the Statement of Financial Position. The Bay of Plenty Polytechnic considers it has assumed all the normal risks and rewards of ownership of this property despite the legal ownership not being transferred and accordingly it would be misleading to exclude these assets from the financial statements. Distinction between revenue and capital contributions Most Crown funding received is operational in nature and is provided by the Crown under the authority of an expense appropriation and is recognised as revenue. Where funding is received from the Crown under the authority of a capital appropriation, the Bay of Plenty Polytechnic accounts for the funding as a capital contribution directly in equity.

Notes to the Financial Statements for the year ended 31 December 2012

note 3a

Government Funding 2012 Actual $'000 EFTS (Equivalent Full Time Students) ITOs (Industry Training Organisations) Other Government Funding Childcare operational grant TOPS/Skill NZ Supplementary and special needs grants Quality investment fund Youth Guarantee additional payment

note 3b

2011 Actual $'000

23,436 211 23,647

23,426 236 23,662

23,081 235 23,316

783 117 276 1,899 3,075 26,722

901 188 562 123 1,774 25,436

974 175 640 513 259 2,561 25,877

2012 Actual $'000 11,098 964 12,062

2012 Budget $'000 12,276 1,409 13,685

2011 Actual $'000 11,401 1,091 12,492

Student Tuition Fees

Domestic International

note 3c

2012 Budget $'000

Other Income Other income is generated by Bay of Plenty Polytechnic as an outcome of its operating activities which do not form part of its core operations. Other income is made up of the following significant items: 2012 Actual $'000

2012 Budget $'000

2011 Actual $'000

379 307 21 158 106 60 113 35 52 22 70 3 18 3 19 87 1,453

423 227 3 146 73 59 62 37 31 22 11 16 6 27 206 1,349

450 279 98 165 64 67 99 74 42 22 55 9 3 19 5 18 148 1,617

660

458

550

Trading income Childcare Centre fees Aquatic Centre fees Produce sales Bay Auto sales Catering contracts Computer sales - staff & students Atrium Restaurant sales Conference revenue Copy Centre sales Hairdressing sales Dive gear lease / sales Library charges Consultancy Parking Fashion sales Student activities Beautician sales Carpentry sales Accommodation Dividends

Notes to the Financial Statements for the year ended 31 December 2012

Other income Conjoint income Other income Other grants & donations Gain on sale of assets Bad debts recovered Total Other Income

note 3d

4,456

3,883

4,326

2012

2011

Actual

Budget

Actual

$'000

128

Total finance costs (on historical cost basis)

128

236 236

237 237

343 343

2012 Actual $'000

2012 Budget $'000

2011 Actual $'000

25,744 69 102 109 26,024

25,510 98 34 50 25,692

25,169 90 132 25,391

2012 Actual $'000

2012 Budget $'000

2011 Actual $'000

4,496 4,496

5,463 5,463

4,156 4,156

2012 Actual $'000

2012 Budget $'000

2011 Actual $'000

2,906 2,677 98 13 368 23 6 29 (4) 6,116

2,760 2,761 90 348 44 6,003

2,811 3,169 90 406 41 292 18 29 6,856

Employee Benefit Expenses

Consumables

Consumables Total Consumables

note 4c

792 1,321 16 3 26 2,158

Bank loans and overdrafts

Wages and salaries Employee welfare expenses Post employment benefits Increase/(decrease) in employee entitlements Total Employee Benefit Expenses

note 4b

904 1,082 75 15 2,076

Finance Cost/Income

Interest earned on bank deposits Total Finance Income (on historical cost basis)

note 4a

688 1,472 33 128 20 2,341

Other Expenses

Occupancy/property costs Administration expenses Audit of financial statements Valuation fee Trading expenses Bad debts Impairments Loss on sale of fixed assets Fair value adjustment to asset Total Other Expenses

Notes to the Financial Statements for the year ended 31 December 2012

note 5

Cash and Cash Equivalents Bay of Plenty Polytechnic maintains sufficient funds on hand at call to enable all of its obligations to be met as they fall due. Interest Rate %

As at 31 December funds on hand were as follows: Cash on hand Westpac current account Westpac direct debit account BNZ current account Westpac call ANZ call ASB call

0.20

3.00 2.50 2.50

2012 Actual $'000

2012 Budget $'000

2011 Actual $'000

3 31 19 3 1,039 1,072 646 2,813

3 53 20 2 420 70 500 1,068

3 119 20 3 17 70 578 810

Surplus funds are invested in accordance with Council's investment policy. Terms of deposits range from 30 days to 90 days. As at 31 December funds invested were as follows: Interest Rate % ANZ term deposit ANZ term deposit Kiwibank term deposit Kiwibank term deposit ASB term deposit

3.75 3.75 3.75 3.72 3.66

Total Cash and Cash Equivalents

1,000 1,000 1,000 3,000

1,000 1,000 1,000 1,000 1,000 5,000

2,813

4,068

5,810

2,813 2,813

1,068 3,000 4,068

810 5,000 5,810

Reconciliation of cash for the purpose of the Statement of Cash Flows For the purpose of the Statement of Cash Flows, cash and cash equivalents comprise the following as at 31 December: Cash at bank and in hand Short-term deposits

note 6

Trade and Other Receivables Receivables are amounts owing to Bay of Plenty Polytechnic arising from normal operating activities less provision for any debts which the Polytechnic considers may not be collectable as at 31 December. Accruals represent income that has been earned but not invoiced by 31 December. Bay of Plenty Polytechnic continued to make available to staff the facility to borrow funds on a short term basis to assist in the purchase of computer hardware and software. 2012 2012 2011 Actual Budget Actual $'000 $'000 $'000 Accrued income Staff computer purchase loans Receivables less Provision for doubtful debts Total Trade and Other Receivables

131 5 7,294 (15) 7,415

125 5 8,165 (28) 8,267

156 4 8,332 (17) 8,475

Notes to the Financial Statements for the year ended 31 December 2012

Student Fees are non-interest bearing and generally should be paid on enrolment and no later than at graduation. Fair value Student Fees and Other Receivables are non-interest bearing and receipt is normally within 30 days, therefore the carrying value of student fees and other receivables approximates their fair value. Staff loans are subject to interest over the period of the loan (up to two years). Impairment The status of receivables as at 31 December are detailed below:

Not past due Past due 1-60 days Past due 60-120 days Past due > 120 days

Gross $'000 7,226 82 72 50 7,430

2012 Impairment $'000 (1) (4) (10) (15)

Net $'000 7,226 81 68 40 7,415

Gross $'000 8,266 151 28 47 8,492

2011 Impairment $'000 (1) (1) (1) (14) (17)

Net $'000 8,265 150 27 33 8,475

The provision for doubtful debts has been calculated based on an analysis of bad debts for previous periods and a review of all debts due at year end.

note 7

Prepayments Prepayments represent expenditure prepaid during current financial year which relates to activities for the following financial year.

Prepayments

note 8

2012 Actual $'000

2012 Budget $'000

2011 Actual $'000

346

210

283

Financial Assets Fair value through equity assets consist of investments in ordinary shares and therefore have no fixed maturity date or coupon rate. These have been valued at the prevailing market rate as at Balance Date.

Shares in Zespri Group Ltd Shares in Horizon Energy Ltd Shares in Polytechnics International New Zealand Limited (PINZ) Total Financial Assets

2012 Actual $'000

2012 Budget $'000

2011 Actual $'000

1 3 44 48

3 3 67 73

1 3 40 44

Fair value hierarchy disclosures For those instruments recognised at fair value on the Statement of Financial Position, fair values are determined according to the following hierarchy: Quoted market price - Financial instruments with quoted prices for identical instruments in active markets. Valuation technique using observable outputs - financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable. Valuation technique with significant non-observable inputs - financial instruments valued using models where one or more significant inputs are not observable.

Notes to the Financial Statements for the year ended 31 December 2012

The following table analyses the basis of the valuation of classes of financial instruments measured at fair value on the Statement of Financial Position: 2012 Actual $'000

2012 Budget $'000

2011 Actual $'000

4 44 48

6 67 73

4 40 44

Motor Computer Vehicles Hardware $'000 $'000

WIP $'000

Total $'000

Shares Quoted market price Observable inputs Significant non-observable inputs

note 9

Property, Plant & Equipment Crown Title

Year ended 31 December 2012 Net of accumulated depreciation at 1 Jan 2012 Revaluation at 31 Dec 2012 Transfer from work in progress Impairment Additions Disposals Classified as held for sale Depreciation on disposals Fair value adjustment Depreciation charge for the year Net of accumulated depreciation at 31 December At 1 January 2012 Cost or fair value Accumulated depreciation At 31 December 2012 Cost or fair value Accumulated depreciation

Polytechnic Title

Leasehold Plant and ImproveEquipments ment Property Property $'000 $'000 $'000 $'000 31,850 375 -

39,606 3,719 3,983 367 (8)

(662)

1 (1,621)

71 (16)

6,616 125 1,612 (276) 245 (1,349)

469 3 353 (384) 362 (205)

1,998 346 1,212 (5) 5 (919)

997 (6) 1,573 (35) -

81,536 4,094 4,457 (6) 5,188 (673) (35) 613 (4,772)

31,563

46,047

6,973

598

2,637

2,529

90,402

33,172 1,322 31,850

42,328 2,722 39,606

16,797 10,181 6,616

1,785 1,316 469

6,263 4,265 1,998

997 997

101,342 19,806 81,536

31,563 31,563

46,047 46,047

71 16 55

18,259 11,286 6,973

1,757 1,159 598

7,816 5,179 2,637

2,529 2,529

108,042 17,640 90,402

Notes to the Financial Statements for the year ended 31 December 2012

Crown Title

Year ended 31 December 2011

Polytechnic Title

Leasehold Plant and ImproveEquipments ment Property Property $'000 $'000 $'000 $'000

Net of accumulated depreciation at 1 Jan 2011 Revaluation at 31 Dec 2011 Transfer from work in progress Impairment Additions Disposals Classified as held for sale Depreciation on disposals Fair value adjustment Depreciation charge for the year

32,511 (661)

39,188 643 1,353 (7) (80) 7 (1,498)

Net of accumulated depreciation at 31 December 2011

31,850

39,606

33,172 661 32,511

40,418 1,230 39,188

33,172 1,322 31,850

42,328 2,722 39,606

At 1 January 2011 Cost or fair value Accumulated depreciation At 31 December 2011 Cost or fair value Accumulated depreciation

Motor Computer Vehicles Hardware $'000 $'000

WIP $'000

Total $'000

6,554 2 1,133 (463) 440 (1,050)

428 202 (161)

1,451 343 960 (1,744) 1,742 (754)

553 (988) (292) 1,724 -

80,685 (292) 5,372 (2,214) (80) 2,189 (4,124)

6,616

469

1,998

997

81,536

16,126 9,572 6,554

1,583 1,155 428

6,704 5,253 1,451

553 553

98,556 17,871 80,685

16,797 10,181 6,616

1,785 1,316 469

6,263 4,265 1,998

997 997

101,342 19,806 81,536

Impairment An amount of $5,628 of 2011 work in progress was reclassified as an expense as no capitalisable project materialised. This amount was recognised as an impairment and as an expense in the Statement of Comprehensive Income. Valuation The most recent valuation of land, buildings and infrastructure were performed by Roger Hills FNZIV FPINZ, independent registered valuer, of the firm Hills Haden Ltd. The effective date of the revaluation was 31 December 2012. Land Land is valued at fair value using market-based evidence on its highest and best use with reference to comparable land values. Adjustments have been made to the "unencumbered" land value for campus land where there is a designation against the land or the use of the land is restricted because of reserve or endowment status. These adjustments are intended to reflect the negative effect on the value of the land where an owner is unable to use the land more intensely. Restrictions on the Polytechnic's ability to sell land would normally not impair the value of the land because the Polytechnic has operational use of the land for the foreseeable future and will substantially receive the full benefits of outright ownership. Buildings Specialised buildings (eg campuses) are valued at fair value using depreciated replacement cost because no reliable market data is available for buildings designed for education delivery purposes.

Notes to the Financial Statements for the year ended 31 December 2012

Depreciated replacement cost is determined using a number of significant assumptions. Significant assumptions include: • The replacement asset is based on the reproduction cost of the specific assets with adjustments where appropriate for obsolescence due to over-designed or surplus capacity. • The replacement cost is derived from recent construction contracts of similar assets and Property Institute of New Zealand cost information. • The remaining useful life of assets is estimated. • Straight-line depreciation has been applied in determining the depreciation replacement cost value of the asset. Restriction on title Bay of Plenty Polytechnic has assumed all normal risk and rewards of ownership regarding Land and Buildings in Crown Title, although legal title has not been transferred. There are no restrictions on the use of Crown Land and Buildings. Work in progress Included in Plant & Equipment at 31 December 2012 is an amount of $2,579,101 (2011: $997,074) relating to expenditure in Work in Progress.

note 10

Non-Current Assets Held for Sale 2012 Actual $'000

Year ended 31 December 2012 Opening balance as at 1 January (fair value) Additions - Sea Scout building Disposals Net gain / (loss) on disposal Closing Balance as at 31 December (fair value)

note 11

15 35 (15) 35

2012 Budget $'000 0

2011 Actual $'000 15 15

Intangibles At the moment Software is the only Intangible Asset of Bay of Plenty Polytechnic. These intangible assets have been assessed as having finite lives and are amortised using the straight line method over a period of 5 years.

Year ended 31 December 2012 Net of accumulated depreciation, at 1 January Additions Disposals Amortisation charge for the year Net of accumulated amortisation, at 31 December At 1 January 2012 Cost or fair value Accumulated amortisation and impairment

At 31 December 2012 Cost or fair value Accumulated amortisation and impairment

2012 Actual $'000

2012 Budget $'000

2011 Actual $'000

637 147 (223) 561

637 63 (180) 520

604 229 (196) 637

1,987 (1,350) 637

1,758 (1,154) 604

2,127 (1,566) 561

2,050 (1,530) 520

1,987 (1,350) 637

Notes to the Financial Statements for the year ended 31 December 2012

note 12

Trade and Other Payables

Trade payables Other payables Interest payables

2012 Actual $'000

2012 Budget $'000

2011 Actual $'000

2,535 1,210 3,745

2,800 937 3,737

2,759 744 3,503

Trade payables are non-interest bearing and are normally settled on a 7-day term or on the 20th of the following month. Other payables are non-interest bearing and largely consist of accruals and suspense accounts, which are expected to be cleared within the following financial year. Interest payable is normally settled quarterly throughout the financial year.

note 13

Interest Bearing Loans and Borrowings 2012 Actual $'000 Current EECA loans - unsecured

2012 Budget $'000

2011 Actual $'000

12 12

EECA loan Bay of Plenty Polytechnic received two loans funded by EECA to facilitate expenditure on power utilisation tools that are expected to generate savings in normal power consumption. The loans are interest free and repayable in quarterly instalments over five years. The balance owing has been recalculated at 8% interest to represent fair value.

Opening book value of EECA loans Repayments during year Fair value interest expensed Amortisation of loan admin fee offset to interest expense Closing Book Value of EECA Loan

note 14

2012 Actual $'000 12 (12) 0

2012 Budget $'000 12 (12) 0

2011 Actual $'000 57 (47) 3 (1) 12

2012 Actual $'000

2012 Budget $'000

2011 Actual $'000

1,405 2,753 (2,688) 1,470

1,418 1,418

1,293 2,534 (2,422) 1,405

14 (3) 11 1,481

16 16 1,434

16 (2) 14 1,419

Provisions Employees are entitled to annual leave pay and long service leave pay.

Employee Annual Leave Entitlements At 1 January Additions during the year Utilised during the year

Employee Sick Leave Entitlements At 1 January Movement for the year Total Current Provisions

Notes to the Financial Statements for the year ended 31 December 2012

These provisions are expected to be settled within 12 months of the balance date and therefore classified as current liabilities. Entitlements related to annual leave are measured at the current rate of pay. Entitlements related to sick leave have been calculated at present value of future cash flows determined on actuarial basis.

Employee Long Service Leave Entitlements At 1 January Movement for the year Total Non-current Provisions

2012 Actual $'000

2012 Budget $'000

2011 Actual $'000

111 48 159

90 90

90 21 111

Entitlements related to long service leave have been calculated at present value of future cash flows determined on actuarial basis and are considered as non-current. This provision is affected by number of assumptions including expected length of service, attrition rate and salary increase.

note 15

note 16

Revenues in Advance Enrolments commenced in November of this year for next year's programmes. Next year's fees income received prior to 31 December of this year has been transferred into next year. 2012 2012 Actual Budget $'000 $'000

2011 Actual $'000

Student fees invoiced relating to future year's income Deferral of unspent grant International students Prepaid rent from other institutes Lease funds received in Advance Other Total Revenue Received in Advance

6,862 62 475 875 204 1 8,479

6,103 98 725 34 68 7,028

7,500 194 725 200 8,619

Related Party Disclosure Significant transactions with government-related entities The government influences the roles of the Bay of Plenty Polytechnic as well as being a major source of revenue. For the year ended 31 December 2012 the Institute received from the following government-related entities: - Tertiary Education Commission $26.722m (2011 $25.877m) funding and grant to provide education and research services - Ministry of Education $49k (2011 $54) for accommodation services for the Wharekura and School for Young Parents - Polytechnic International New Zealand Ltd $301k (2011 $43k) for International Student Fees - University of Waikato $1,716k (2011 $988k) for facilitation of teaching in Tauranga - Waiariki Institute of Technology $350k (2011 $330k) for facilitiation of teaching in Tauranga For the year ended 31 December 2012 the Bay of Plenty Polytechnic paid the following government-related entities: - University of Waikato $253k (2011 $114k) for teaching resources in Tauranga - Wintec $6k (2011 $52k) for facilitiation of teaching in Hamilton - NZQA $312k (2011 $241k) for teaching unit fee costs - Air New Zealand $82k (2011 $131k) for domestic and international air travel - Tertiary Accord of New Zealand $78k (2011 $78k) for membership fees - NZITP $30k (2011 $43k) for membership fees - NZ Post $68k (2011 $64k) for postal services The Bay of Plenty Polytechnic also leases, at a nil rental amount, land and buildings legally owned by the Crown. Further information on the accounting for Crown-owned land and buildings is disclosed in note 2y under the heading "Critical Judgements in Applying Accounting Policies".

Notes to the Financial Statements for the year ended 31 December 2012

Collectively, but not individually significant transactions with government-related entities In conducting its activities, the Institute is required to pay various taxes and levies such as GST, PAYE and ACC levies to the Crown and entities related to the Crown. The payment of these taxes and levies is based on the standard terms and conditions that apply to all tax and levy payers. The Institute is currently exempt from paying income tax and fringe benefit tax. The Bay of Plenty Polytechnic purchases goods and services from entities related to the Crown and it also provides services to entities related to the Crown. The purchase and provision of goods and services to government-related entities for the year ended 31 December 2012 are small when compared to the Institute's total expenditure and revenue and have all been conducted on an arm's length basis. The provision of services to government-related entities is mainly related to the provision of educational courses. Key management personnel

Key management personnel compensation and short-term employee benefits

2012 Actual $'000 1,218

2011 Actual $'000 1,114

Key Management Personnel compensation includes 4 members of senior executive and 4 heads of school. Councillors fees are disclosed separately in Note 17.

Council Members 2012

Council Members Neil Barns

Paul Bowker

Sylvia Willison Graham Young

Executive Alan Hampton

Kuku Wawatai Paul Wollaston Senior management David Lyon Malcolm Hardy Rabindra Das

Ancillary Services Provided by Related Parties $ 2012 8,665 2,489 23,601 435 1,723 12,500 43 49,456

Ancillary Services Provided to Related Parties $ 2012 350,000 1,115 351,115

Related Party Education NZ Neil Barns Consulting Ltd Waiariki Inst of Technology Chamber of Commerce Tourism BOP Studio La Vida Hotel on Devonport Huria Management Trust Sport BOP Outward Bound NZ Tauranga Art Gallery

Relationship Trustee Director/Shareholder Deputy Chair of Council President Chairman of Board Family member director Family member owner Trustee/employee Trustee Trustee Trustee

Tertiary Accord of NZ Titanium Industry Development Ministry of Education Guild & Spence Sport BOP

Director Board Member

78,000 3,714

310,816

Family member employee Family member employee Trustee

141 3,476 12,500 97,831

48,895 1,100 360,811

Fordeatil Ltd Higgins Contractors Order of St John Rhubarb

Director/Shareholder Family members employees Fami;y members volunteer Treasurer

1,500 44,823 5,363 1,800 53,486

1,490 1,490

Notes to the Financial Statements for the year ended 31 December 2012

Council Members 2011

Council Members Neil Barns

Paul Bowker

Sylvia Willison Graham Young

Executive Alan Hampton

Kuku Wawatai Paul Wollaston

Senior management Malcolm Hardy

Ancillary Services Provided by Related Parties $ 2011 20,694 14,285 800 21,758 50 115,291 14,000 21,500 3,557 35 211,969

Ancillary Services Provided to Related Parties $ 2011 330,000 5,775 745 987,933 1,008 1,325,460

Related Party Education NZ Neil Barns Consulting Ltd Waiariki Instit of Technology Chamber of Commerce Tourism BOP Studio La Vida Hotel on Devonport University of Waikato Huria Management Trust Sport BOP Outward Bound NZ Tauranga Art Gallery

Relationship Trustee Director/Shareholder Deputy Chair of Council Board member Chairman of Board Family member director Family member owner Leadership Consultant Trustee/employee Trustee Trustee Trustee

Tertiary Accord of NZ Titanium Industry Development Ministry of Education Guild & Spence Sport BOP

Director Board Member

78,000 -

692,414

Family member employee Family member employee Trustee

21,500 99,500

54,000 156 1,008 747,579

Higgins Contractors Order of St John

Family member employee Family members volunteer

632 589 1,221

There have been no guarantees provided or received for any related party receivables. Family members of key management personnel may be involved in transactions with the Bay of Plenty Polytechnic through taking a course of study. These services are provided on the same basis and at the same cost as for any other student.

Notes to the Financial Statements for the year ended 31 December 2012

note 17

Councillors' Remuneration Cabinet Office Circular CO (01) 8 "Fees Framework for Members of Statutory and Other Bodies Appointed by the Crown" requires the disclosure of the fees and other benefits paid to each member or former member of the Council.

Total remuneration paid to members of Bay of Plenty Polytechnic Council in fulfilling its governance role.

2012 Actual $'000

2012 Budget $'000

2011 Actual $'000

133

140

133

There were ten Council meetings, four Audit and Risk Committee meetings, four Council workshops and a number of working group meetings by Bay of Plenty Polytechnic during 2012. Finish Councillor Neil Barns (Vice-chair) Paul Bowker Brian Gould Paul Logan Aroha Luttenberger Rahera Ohia Fleur Sweeney Paula Thompson Ian Turner (Chairman) Sylvia Willison Graeme Young

Start

Date

2012 Meeting

Date Fees Paid $ 18,000 14,400 14,400 14,400 14,400 28,800 14,400 14,400

Apr-11 Apr-11 Apr-11

Attendance Council Meetings 8 9 7 10 2 8 3 2 8 4 7

Attendance 2011 Meeting Other Meetings Fees Paid $ 12 18,000 9 14,400 6 9,600 6 14,400 4,800 7 14,400 2 4,800 1 4,800 12 28,800 2 9,600 3 9,600

133,200

note 18

133,200

Financial Risk Management Objectives and Policies The Bay of Plenty Polytechnic's principal financial instruments comprise cash and short term deposits. Bay of Plenty Polytechnic has various other financial instruments such as trade debtors and trade creditors, which arise directly from its operations. These activities expose the Institute to a variety of financial instrument risks including market risk, credit risk and liquidity risk. A series of policies manages the risks associated with financial instruments. The Institute is risk averse and seeks to minimise exposure from its treasury activities. Financial Instrument risks The Bay of Plenty Polytechnic's activities expose it to a variety of financial instrument risks, including market risks, credit risks and liquidity risk. The Bay of Plenty Polytechnic has a series of policies to manage the risks associated with financial instruments and seeks to minimise exposure from financial instruments. These policies do not allow any transactions that are speculative in nature to be entered into. Market risk The interest rates on Bay of Plenty Polytechnic investments varied from 2.5% to 4.2% per annum during 2012. Fair value interest rate risk Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. The Bay of Plenty Polytechnic's exposure to fair value interest rate risk is limited to its bank deposits which are held at mixed rates of fixed and floating interest. Cashflow interest rate risk Cash flow interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. Investment interest rates expose the Bay of Plenty Polytechnic to cash flow interest rate risk. Bay of Plenty Polytechnic investment policy permitted by legislation is to invest within the following areas: - with New Zealand registered banks - in Public Securities - in such other securities as the Minister may from time to time approve. It is specifically prohibited from investing in any other types of financial security.

Notes to the Financial Statements for the year ended 31 December 2012

Foreign currency risk Currency risk is the risk the fair value of future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. Bay of Plenty Polytechnic's exposure to foreign currency risk is minimal. All fees are denominated in New Zealand dollars to diminish risks associated with revenue streams. Commodity price risk Bay of Plenty Polytechnic's exposure to commodity price risk is minimal. Credit risk With the exception of Student Fees, Bay of Plenty Polytechnic trades only with recognized, creditworthy third parties. Receivable balances are monitored on an ongoing basis with the result that Bay of Plenty Polytechnic's exposure to bad debts are minimised. With respect to credit risk arising from the other financial assets of Bay of Plenty Polytechnic, which comprise cash and cash equivalents, Bay of Plenty Polytechnic's exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the carrying amount of these instruments. By limiting the amount that can be invested in any one institution Bay of Plenty Polytechnic reduces the risk of any loss which could arise. There are no significant concentrations of credit risk within Bay of Plenty Polytechnic. Capital management Bay of Plenty Polytechnic's capital is its equity, which comprise retained earnings and reserves. Equity is represented by net assets. The Education Amendment Act 1990 requires the Council to ensure that systems are established for the co-ordination of and accountability for, activities within the institution to ensure the responsible use of public resources. The Bay of Plenty Polytechnic's resources are largely managed as a by-product of managing revenues, expenses, assets, liabilities, investments and general financial dealings. Liquidity risk Liquidity risk is the risk that Bay of Plenty Polytechnic will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Bay of Plenty Polytechnic aims to maintain flexibility in funding by keeping committed credit lines available. Bay of Plenty Polytechnic manages its borrowings in accordance with its treasury policies. Bay of Plenty Polytechnic does not operate an overdraft facility. Contractual maturity analysis of financial liabilities The table below analyses Bay of Plenty Polytechnic's financial liabilities into relevant maturity groupings based on the remaining period at the balance date to the contractual maturity date. The amounts disclosed are the contractual undiscounted cash flows. ContractCarrying ual Cash Amount Flows $'000 $'000 2012 Trade and other payables Secured loans

2011 Trade and other payables Secured loans

< 1 Year 1 - 2 Years $'000 $'000

3,745 3,745

3,503 12 3,515

2-5 Years $'000

> 5 Years $'000

Sensitivity analysis A sensitivity analysis based on movement of interest rates affecting short-term deposits and fixed interest loans has not been prepared as it is considered immaterial.

Notes to the Financial Statements for the year ended 31 December 2012

note 19

Financial Instruments Fair values Set out below is a comparison by category of carrying amounts and fair values of all of Bay of Plenty Polytechnic's financial instruments that are carried in the financial statements at other than fair values. Carrying Amount 2012 2011 $'000 $'000

Fair Value 2012 2011 $'000 $'000

Financial Assets Loans and receivables Cash at bank and in hand Short-term deposits Receivables Staff computer purchase loans Fair value through equity Listed shares Unlisted shares Financial Liabilities Financial liabilities at amortised cost Trade payables Interest-bearing loans and borrowings

2,813 7,294 5

810 5,000 8,332 4

2,813 0 7,279 5

810 5,000 8,315 4

4 44

4 40

4 44

4 40

3,745 -

3,503 12

3,745 -

3,503 12

Credit quality of financial assets The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit Counterparties with credit ratings (Standard and Poor's) Cash and Term Deposits AA AAA+

2,813 2,813

3,065 2,745 5,810

Student fees and other receivables mainly arise from the declaration by the client/students at the time of enrolment, therefore there are no procedures in place to monitor the credit quality of student fees and other receivables with reference to internal or external credit rating, apart from withholding enrolment of past bad debtors. The Bay of Plenty Polytechnic has no significant concentration of credit in relation to student fees and other receivables as it has large numbers of credit customers and the Bay of Plenty Polytechnic can withhold qualification results to recover outstanding debts.

Interest rate risk The following table sets out the carrying amount, by maturity, of the financial instruments that are exposed to interest rate risk:

Year ended 31 December 2012 Fixed rate assets Deposits Floating rate assets Cash & cash equivalents Year ended 31 December 2011 Fixed rate assets Deposits Floating rate assets Cash & cash equivalents

<1 Year $'000

>1 - <2 Years $'000

>2 - <3 Years $'000

>3 - <4 Years $'000

>4 - <5 Years $'000

>5 Years $'000

Total $'000 -

2,813

5,000

810

Notes to the Financial Statements for the year ended 31 December 2012

note 20

Commitments and Contingencies Bay of Plenty Polytechnic has estimated capital expenditure of $875,236 committed at balance date but not provided for (2011 $1,559,056) 2012 2011 Capital Commitments as at 31 December 2012 $'000 $'000 Building & infrastructure Plant & equipment Facility improvements Motor vehicles ISS projects Computer hardware Computer software Total Capital Commitments

Operating Lease Commitments as at 31 December 2012 Within one year Within two to five years Total Operating Lease Commitments

Contractual Commitments as at 31 December 2012 Within one year Within two to five years Total Operating Commitments

273 103 156 343 875

742 346 44 427 1,559

2012 $'000

2011 $'000

167 437 604

16 16 32

2012 $'000

2011 $'000

205 205

1,329 205 1,534

Contingencies as at 31 December 2012 Contingent assets There were no contingent assets as at 31 December 2012. Contingent liabilities There is a potential restoration liability upon termination of lease of $125,000 for land leased by the Bay of Plenty Polytechnic. This land is used for carparking and may need to be restored to its original form. Contingencies as at 31 December 2011 Contingent assets There were no contingent assets as at 31 December 2011 Contingent liabilities There is a potential restoration liability upon termination of lease of $125,000 for land leased by the Bay of Plenty Polytechnic. This land is used for carparking and may need to be restored to its original form.

Notes to the Financial Statements for the year ended 31 December 2012

note 21

Lessor Commitments Bay of Plenty Polytechnic has lease agreements in place with external parties for provision of premises and services. Finance Lease Commitments as at 31 December 2012 Within one year Within two to five years Total Finance Lease Commitments

2011 $'000

2012 $'000

2011 $'000

230 755 985

214 616 125 955

2012 Actual $'000

2012 Budget $'000

2011 Actual $'000

Income Operating grants - MOE Fees - staff, students, public Family assistance (WINZ) Total Income

783 163 215 1,161

902 211 211 1,324

988 206 244 1,438

Expenses Personnel Other Total Expenses

1,047 56 1,103

1,192 85 1,277

1,120 65 1,185

253

Operating Lease Commitments as at 31 December 2012 Within one year Within two to five years Greater than five years Total Operating Lease Commitments

note 22

2012 $'000

Childcare Centre Income and Expenditure for the year ended 31 December 2012

Net Surplus

Statistics MoE hours funded MoE hours funded MoE 20 hours ECE MoE plus 10 hours ECE

Note 1

2012 26,649 25,565 29,406 12,450

under 2's over 2's

2011 32,777 28,160 39,173 15,505

Comments In 2012 the annual parent survey yielded a 100% above satisfactory rating for education and care of clients' children. There were 80 surveys handed out and 51 returned.

The Childcare Centre is run as a separate trading entity within the Bay of Plenty Polytechnic. It operates under two licences (30151 and 40042) to provide childcare for up to 100 children, primarily for staff and students at the Bay of Plenty Polytechnic. Note 1: The accounts presented above are required to be presented separately for Ministry of Education purposes to support the funding provided. There is no reflection of the portion of occupancy costs or depreciation on buildings and equipment used by the Childcare Centre, which are included in the main accounts of the Bay of Plenty Polytechnic.

Notes to the Financial Statements for the year ended 31 December 2012

note 23

Variations to Budget and Previous Year Significant variations may be noted as: 1. Other government funding - increase in 2012 due to high level of Quality Reinvestment Fund income. TEC provided this funding based on progress and completion of previously agreed projects and this income was not guaranteed, leading to low expectations, reflected in the 2012 budget. All projects were completed successfully. 2. Domestic tuition fees - decrease in 2012 due to more courses delivered with a relatively lower tuition fee per EFT. 3. International tuition fees - decrease in 2012 due to lower than expected recruitment of international students. This is expected to increase in 2013 following the appointment of an international marketing manager. 4. Employee benefit expenses - increase in 2012 due to costs relating to Quality Reinvestment Fund activities (see point 1). 5. Consumables - decrease in 2012 due to cost savings in line with reduced student fee income. 6. Depreciation - Increase in 2012 due to higher levels of capital expenditure. A number of building projects were completed to improve teaching facilities. These improvements were necessary to provide a higher level of service to students. 7. Cash balance - Decrease in 2012 due to higher levels of capital expenditure (see point 6). 8. Trade receivables and revenue in advance balances - Decrease in 2012 due to the level and timing of 2013 tuition fee invoices raised in advance. In 2010 and 2011 the Polytechnic experienced high numbers of enrolments for the following academic year.

Contact Information Phone (07) 571 0190 Facsimile (07) 544 2386 E-mail info@boppoly.ac.nz Website www.boppoly.ac.nz Freephone 0800 BOPPOLY (267 7659) Campuses Windermere Campus – 70 Windermere Drive, Windermere, Tauranga. Bongard Centre – 200 Cameron Road, Tauranga. Road Transport, Warehousing & Logistics Training Centre – 129 Maleme Street, Greerton, Tauranga. Postal Address Private Bag 12001, Tauranga 3143. Auditor - Clarence Susan, Audit New Zealand. On behalf of the Auditor-General Wellington. Bankers - Westpac. Solicitors - SharpTudhope, Tauranga. Insurer - Jardine Lloyd Thompson Ltd.