Bay of Plenty Polytechnic Annual Report 2011 by Kristina Nink

2011 Annual Report

Our people, our performance

Name changed to Bay of Plenty Polytechnic. Completion of Rex Williams Student Amenities Centre and the Atrium; development of fashion, textile, hospitality, tourism and television training programmes.

Transformation of horticulture centre into hospitality studies centre including the commercial training restaurant the ’Atrium Restaurant’. Set-up video-conferencing unit at Bongard Centre to facilitate distance learning. Establishment of school structure with five schools: Business Studies, Education and Social Sciences, Retail and Design, Industrial Trades and Applied Science, and Tutara Wananga.

1988 1982

1991

1997

2000

Opening of Pacific Coast Applied Research Centre and Te Pare a Ruahine the Aquatic Centre.

2003

Opening of a purposebuild engineering and welding facility, opening of Maharaia (the partnership building), and refurbishment of the Automotive facilities. Establishment of Ahumoana a Toi Aquaculture Centre. Te Whare Wananga o Awanuiarangi joins the Tertiary Partnership.

2010 2008

21 September 1982 Official opening of Bay of Plenty Community College.

Construction of the downtown Bongard Centre for business, computing and hairdressing programmes.

Opening of Te Aongahoro (Student Learning Centre – Library, Education Development Centre, Copy Centre, café and lecture theatres). Tauranga Moana bestowed the designation of Te Kuratini o Poike and the first evening programmes commence in business and computing.

Establishment of a formal Tertiary Partnership with the University of Waikato, sharing facilities and expertise and offering pathways, certificates, diplomas and degrees.

Contents

Part 1: Our People Who We Are & What We Do

2011 At A Glance

Chairmanâ&#x20AC;&#x2122;s Report

Chief Executive Report

Education and Applied Research

Performance and Sustainability

Relationships

Acknowledgements

Part 2: Our Performance Financial Reports

Audit Report

Equal Opportunities

Staff Research Outputs

Key Performance Indicators

EFTs Summary

Five Year Performance Summary

Statement of Financial Position

Statement of Comprehensive Income

Statement of Changes in Equity

Cash Flow Statement

Notes to Financial Statements

Statement of Resources

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).

Who We Are & What We Do Eke P채nuku

Reaching our potential, realising our dreams and creating our future. TOGETHER

At Bay of Plenty Polytechnic we share a commitment to providing a dynamic learning experience where learners discover their strengths and potential through an active and stimulating environment.

e deliver a comprehensive range of quality programmes that are future-focussed. They are progressively being developed with industry input and students in mind and, through our unique relationships with other tertiary organisations, we provide the pathways necessary for life-long learning.

We assist our diverse learners and staff through personalised support systems, modern facilities and our commitment to continued excellence through initiative, enterprise and achievements that take society forward. Our Vision Eke Pänuku Reaching our potential together to grow a dynamic and progressive place. 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 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 staff 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. 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 hospitality, strategic planning, immigration law, business administration and software project management,

through to flight attending, tourism and event management. 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-focused and works closely with local industry and the community, ensuring the best student outcomes. Throughout both the Bongard and Windermere campuses, there’s also an amazing group of people at the heart of the Polytechnic, 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 key vision, reaching our potential together. We are teachers, learners, helpers, coaches, researchers, environmentalists, innovators and champions – all working cohesively to reach our fullest potential. The Polytechnic is home to an amazing community of students, creating a vibrant, friendly and fun atmosphere. Our students 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 needs.

2011 At A Glance

6702 Students enrolled 3,256

45%

enrolled in Level 1-3 programmes

779 total EFTS School of Applied Science

746 total EFTS School of Applied Technology

858 total EFTS School of Business Studies

873 total EFTS School of Design & Humanities

26%

enrolled in Level 4-5 programmes

29%

enrolled in Level 6+ programmes

140 formal programmes

96 Full programmes (40+ credits)

44 Short awards (1-39 credits)

86%

Surplus

$2,312,000

student satisfaction: School of Applied Science

90%

Total assets

$96,800,000 Government funding

$25,877,000 Student tuition fees

$12,492,000 Other income

student satisfaction: School of Applied Technology

83%

student satisfaction: School of Business Studies

91%

student satisfaction: School of Design & Humanities

85% of students are from the Western Bay of Plenty 5%

of students are from the Eastern Bay of Plenty 6%

of students are from the Waikato 2%

$4,669,000

of students come from the rest of the North Island 1%

Successful Completion

80% overall student satisfaction

86%

of students are from Rotorua 1%

of students are from Auckland

Student Gender 32% Male

68% Female

31% under 20 years old 26% 20-24 years old 14% 25-30 years old 14% 31-40 years old 11% 41-50 years old 4% 51+ years old

Student percentages based on EFTS

30% M채ori 2% Pacific Islander 1% International 9% Disabled

Chairman’s Report

Educational Performance In 2010, the Government made clear to the Polytechnic sector the need to focus on student retention and completion of courses, increasing the number of young Mäori completing tertiary courses, improving research outcomes and increasing the number of international students studying in tertiary institutions. The sector as a whole has responded to the challenge and most if not all institutions have improved their performance in some or all of these areas. I am delighted to present the Bay of Plenty Polytechnic Annual Report for 2011. The report shows that once again the Polytechnic has delivered excellent results in terms of its educational performance while continuing to perform well in financial terms. What is particularly pleasing is that when I meet people in various situations, sometimes parents, sometimes students, I receive feedback about how much our students value and enjoy the programmes they are enrolled in. This adds substance to the numbers and tells us that the Polytechnic is delivering the sort of experience that learners want. This is a good reflection of the unrelenting drive of Council, management and staff to be student focused and committed to improving educational outcomes.

Bay of Plenty Polytechnic’s performance is summarised in the Five Year Performance Summary on page 38, and in more detail in the Key Performance Indicators on page 32. It can be seen that the number of EFTS (Equivalent Full Time Students) in 2011 has decreased compared to 2010, although has increased compared to previous years. This decrease reflects the termination of short courses which ceased to be funded at the end of 2010 and the consequent effect on student numbers. It is also noticeable that International Student EFTS have increased slightly, but by comparison with other Polytechnics, they remain a small part of the Polytechnic’s activity. This area continues to be the subject of attention at management and Council level. It is pleasing to see the strong improvement in qualification completions from 75% to 80% overall. This is an endorsement of the efforts of management and staff. We are also pleased to report an improvement in Mäori student completions from 73% to 76% overall and in rates of retention of Mäori students both at levels 1-3 and Level 4 and above. We will continue to monitor and improve on our KPIs, including a focus on increasing student progression.

Financial Performance The strength of the Polytechnic’s financial management and performance is reflected in the Tertiary Education Commission’s assessment of the Polytechnic as “low” risk in 2011, based on the audited results for 2010 and the three year financial projections for 2011 onwards. Polytechnics are required to deliver a surplus between the ranges of 3-5% of total revenue. The surplus disclosed in the Statement of Comprehensive Income on page 40 of $2.3m is just over the 5% level, and is marginally greater than budget. Total income decreased overall by$400,000 but included a reduction of $1,310,000 in TEC funding for Regional Support that was received in 2009 and 2010. Expenses increased year on year by $2.2m with half of the increase being attributable to increased staff costs (an equal combination of increased staff numbers and inflationary salary increases). Accumulated costs relating to efforts to provide a new student accommodation facility have been written off, adding to the increase in expenditure. We have continued to invest in facilities and equipment to improve the learning experience of students and outcomes for both employers and learners. A good example is the Maleme Street development for transport, warehousing and logistics training and the consolidation of a learning and support facility in Ako Awe, referred to elsewhere in this report.

Future developments Collaboration and relationships have been topics that have occupied much of the time of Council and management during 2011 and will continue to do so through 2012. The Government has made clear its expectation that institutions in the tertiary sector should increase their collaboration, to remove duplication of effort and cost. The Polytechnic has long been involved in collaborative arrangements, particularly through the Bay of Plenty Tertiary Partnership which, in addition to the Polytechnic, includes the University of Waikato and Te Whare Wänanga o Awanuiärangi. While much of the recent focus of the Partnership has been on the development of a new tertiary campus in Tauranga, there is also a real consciousness of the need to develop learning opportunities in the wider Bay of Plenty and in particular, the Eastern Bay and some initiatives are already under way. At the same time we are working with Waiariki Institute of Technology to identify areas of potential collaboration to improve educational outcomes for learners in the wider Bay of Plenty. In mid 2011 a Tertiary Education Commission funded project was established to encourage investigation of collaborative opportunities. Subsequently a meeting of the two institutions’ Councils was held in February 2012 and since then agreement has been reached on areas to investigate for collaboration. We are also consulting with Waikato Institute of Technology on collaborative arrangements across the central North Island region. These are at an early stage of development. Finally, we are conscious of the growing significance of local iwi as an economic force in the region. In order to understand their training requirements, we need to develop stronger relationships with their leaders. This will be a major focus both of the Partnership and the Polytechnic in the current year.

Acknowledgements On behalf of our Council, I would like to thank our Chief Executive, Dr. Alan Hampton, for his thoughtful leadership during the year and also recognise the contribution he makes to the Polytechnic sector at a national level. I know his involvement in the sector is welcomed and well regarded. I would also like to thank both past and present members of Council for their contribution during the year. In particular, we recognize the many years of service of Aroha Luttenberger and Fleur Sweeney, whose terms of office expired at the end of April 2011. In May, we welcomed three new Council members, Dr Bryan Gould, Graham Young and Sylvia Willison. Finally our grateful thanks to all the staff for their role in delivering another successful year.

Ian Turner Chairperson of Council

Chief Executive Report

2011

was a year dominated, and rightly so, by the institution seeking continued improvements in successful student completions. This quest involved all our staff in teaching and learner support and reviewing many of our services, our processes and our facilities. It commences pre-enrolment with required conversations with all intending students to ensure a thorough understanding of the programme requirements, graduate profile and outcomes. Some of the key foundations for future success are then laid in the first few days of the programme. One of the important advantages of ITP delivery is the cohort sizes and the ability to get to know your students – strengths, weaknesses and needs. Institutionally we are committed to understanding our students as individuals and then establishing a safe and supportive learning environment in which their ‘mana’ is recognised and enhanced to support them reaching their potential and realising their aspirations. Disparities between Mäori and non-Mäori students performance has been a particular focus and strategies seeking to address this gap have been founded on the philosophy of Te Waka Hourua – recognising and valuing Te Ao Mäori and both similarities and complementary differences, all working together towards the same goals of student success and completion. The philosophy of Te Waka Hourua influences programme content and delivery, learning facilitation and support. It is an effective ‘whole of institution’ philosophy and practice requiring continuous support and sometimes staff personal development, so that hopefully it becomes a normal way of performing our role as a good educator. Indeed the journey bears some similarities to ‘quality assurance’; ensuring self evaluation and critical reflection is both practiced, embedded and evidenced in all the institution’s business. Bay of Plenty Polytechnic is confident that the data for course and qualification completions will show further improvements in 2011 for both Mäori and non-Mäori learners. A powerful characteristic of much ITP provision is the importance of significant opportunities for work experience of our learners. Bay of Plenty Polytechnic is also committed to endeavouring, where possible, to present ‘real life’ work environments as an integral part of the learning and teaching environment. An excellent example in 2011 was the opening of the Maleme Street Warehouse and Distribution Centre. The Centre is the location for a group of Road Transport and Warehousing programmes delivered by the School of Applied Technology. Supported hugely by industry, the facility operates as a live goods storage and distribution warehouse for our transport and warehouse programmes. Similar models see very effective vocational training delivered through the Atrium Restaurant (Hospitality and Cookery), Bay Auto (Auto Engineering), Hairdressing, Beauty and Massage Salons and Sports and Wellness facilities.

The performance of Bay of Plenty Polytechnic through 2011, particularly in regards to student completions, quality assurance and financial outcomes, is unreservedly down to the willingness of all our staff to respond to the challenges and introduce and manage positive change.

A huge challenge for all of New Zealand is disconnected and at risk youth. Youth Guarantee Programmes for Bay of Plenty Polytechnic have been an important and rewarding experience. However it has demanded a revisiting of pedagogy and practice. In the first instance it has involved establishing individual student mana and self confidence, followed by a collective commitment within the cohort for everyone to achieve successful completion. The programmes have been taken ‘off campus’ and have benefitted greatly from significant hapü and whanau involvement. A major challenge however is to ensure once re-engaged and succeeding, students have appropriate pathways, without obstacles, to continue on to higher levels of training. Whilst degree pathways and post-graduate qualifications are important to the country and the individuals, a key essential requirement of addressing New Zealand’s productivity and competitiveness lies in the pre-degree skilling and upskilling of more of our people. A major focus must continue to be increasing participation in tertiary education through continual removal of barriers, particularly for first generation, second chance and mature learners and entrants at the lower levels. That may require new programmes as well as blended and technologically enhanced delivery of these programmes, but most of all will require far greater engagement and

re-engagement with our ‘at risk’ youth. The solutions need prioritisation of funding by the Government. Failure to find meaningful sustainable solutions for these problems risk major social de-cohesion in the years ahead. ITPs collaboration with secondary schools, iwi and communities are a key essential element in this challenge. A number of years ago, in response to a national initiative to improve curricula alignment between secondary and tertiary sectors, Bay of Plenty Polytechnic was instrumental in the establishment of a Secondary-Tertiary Curriculum Advisory Committee. Membership is from all eight Western Bay of Plenty High Schools, Bay of Plenty Polytechnic and the University of Waikato. When the group failed at short notice to develop a bid in 2010 for one of the first Trades Academies, the group committed to a project to develop a Western Bay of Plenty Youth Pathways capability. The Western Bay of Plenty Youth Pathways database enables secondary school curriculum advisers, students and parents to search learning opportunities available from a range of providers in the Western Bay of Plenty region. The website (www.youthpath.ac.nz) enables identification of appropriate courses, availability of places, time and location of offering and the opportunity to enrol - all online. At the request of Western Bay of Plenty Secondary Principals, Bay of Plenty Polytechnic is currently leading the development of an application for a Trades Academy in 2013. Bay of Plenty Polytechnic has continued to develop further its practiced belief in collaboration, particularly between providers. Its commitment is exemplified by the Bay of Plenty Tertiary Partnership initiative with the University of Waikato and Te Whare Wänanga o Awanuiärangi and its membership of the Tertiary Accord of New Zealand (TANZ) – a collaboration of seven ITPs across New Zealand. The Partnership is unique to New Zealand and sees three institutions recognising each institution’s complementary strength to bring a more diverse and effective range of tertiary opportunities to the people of the Bay of Plenty, but also capable of developing national and international distinctive strengths. The future association of Waiariki Institute of Technology would enable a comprehensive, seamless regional tertiary system to become a reality. Such a vision is not without its challenges and can only prosper and be sustained through parity of esteem and a philosophy of sharing in planning, programmes, services, systems and facilities. The basis of decision making must first be founded on a vision that has the student at the centre rather than the provider(s). Not surprisingly our agencies are strong influences in the effectiveness and growth of our tertiary providers and it is important they practice an open and transparent cooperative approach. This requires consulting with the sector early in policy development and review, demonstrating a consistency of treatment of all sectors in tertiary and not underestimating the organisational complexity of effective well-performing tertiary education institutes – in the present challenging environment. To date the ITP sector is performing remarkably well in a very demanding environment, but recognises there is always the opportunity and need for further innovation and improvement. The performance of Bay of Plenty Polytechnic through 2011, particularly in regards to student completions, quality assurance and financial outcomes, is unreservedly down to the willingness of all our staff to respond to the challenges and introduce and manage positive change. All successful organisations rely on a very clear, strong and strategic governance – management partnership. Bay of Plenty Polytechnic enjoys and benefits from just such a partnership, committed to the key focus of providing the very best possible tertiary opportunities for our people and employers of the Bay of Plenty and beyond.

Dr. Alan Hampton Chief Executive

Our Strategic Priorities

Education and Applied Research We aim to deliver a comprehensive range of programmes that anticipates the needs of students, industry and our region. We are dedicated to creating a learner- centred environment where students are empowered and supported to succeed, and enhancing student learning and success through applied research relevant to industry and iwi.

Bay of Plenty Polytechnic wins national tender for Immigration Training In the first quarter of 2011, Bay of Plenty Polytechnic won the tender for delivering a new tertiary qualification for immigration training. Dr. Alan Hampton, CE, said the Polytechnic was delighted to have been chosen by the Immigration Advisers Authority to develop and deliver the new Graduate Certificate. Previously, immigration advisers were not required to hold formal qualifications to become licensed; however, the Immigration Advisers Authority has recognised the need for a qualification for immigration advice professionals. Throughout 2011, Bay of Plenty Polytechnic worked to develop the graduate level programme, in partnership with the University of Waikato and the University of Victoria (Melbourne) and in close consultation with the Authority and other stakeholders. The Graduate Certificate, comprising of four 15 credit courses, will cover the immigration advisers licensing scheme, immigration law, and immigration and operational instructions. Students will become competent in preparing, lodging and administering immigration applications, appeals, requests, claims and other representation. Taught fully online, students may choose to attend face-to-face tutorials in major centres such as Auckland or in other cities where demand dictates. It is expected the Graduate Certificate will attract interest from existing advisers seeking to upgrade their qualifications as well as providing a pathway for new entrants to the New Zealand immigration adviser profession, both in New Zealand and internationally. Additional interest is expected from human resource personnel dealing with international recruitment and those working in travel or international education. “The project will build on the institution’s recent successful developments of online programmes for the Real Estate industry and New Zealand’s first Diploma in Conveyancing,” said Dr. Hampton. “We also acknowledge the importance of institutional partnerships, working with Victoria University (Melbourne) and the University of Waikato to complete the development and in the delivery of the programme.” The new qualification will be offered from July 2012.

he 2011/2012 summer saw research continue on aspects of life cycle characteristics of both the sea cucumber Australstichopus mollis (A. mollis) and the sea urchin Evechinus chloroticus. For A. mollis, being a commercially important species with aquaculture potential, further information was gathered on reproductive behaviour, the kinetics of fertilisation and aspects of larval settlement. These are key areas that need refining for commercial scale production of juveniles. For E. chloroticus, investigations into the effect of reduced seawater pH on fertilisation and early development continued. With continued climate change ocean pH is reducing, making the ocean more acidic. The implications this has for maintenance of populations of a number of species susceptible to changes in seawater carbonate chemistry is of major concern worldwide. For both research topics, publications in peer reviewed Journals are pending over the coming years.

round 50 tertiary tutors from different organisations attended the inaugural ‘Engage, Enlighten and Empower’ conference sponsored by Ako Aotearoa Academy. The workshops aimed to broaden attendees’ capabilities as tutors, to provide a forum for tertiary teachers to share their ideas and knowledge on how to engage students and how to keep them focused on their studies. Sam Honey, recipient of the Ako Aotearoa 2009 National Tertiary Teaching Excellence Award and conference coordinator, says “we’ve received really positive feedback, with participants leaving the conference with renewed motivation to engage their students. That’s what it has all been about.”

port & Recreation diploma and degree students carried out a series of human performance tests on NZRL National Elite Camp athletes, to assist in the selection of teams ahead of upcoming international matches. Tony Kemp, NZRL Football Manager said his training staff and players were impressed with the Polytechnic’s testing team. Peter Sommers, Group Leader Sport & Recreation, said “we are delighted that an organisation with the prestige of NZRL has requested our services to work with them to carry out these important sports science tests. This is an incredible opportunity for our students to put their learning into practice.”

he end of 2011 saw a physical and organisational redevelopment of the student learning support area (A-Block) at the Polytechnic. From 2012 students will seek assistance from two areas, Ako Awhina and Ako Atea. Ako Awhina provides facilitators within each School to help students individually or in groups with specific learning challenges. Ako Atea, the Student Learning Commons, contains study and social areas, the library and a café. A-block has been refurbished to reflect the changes and provide a more learner-centred environment.

he second annual Curiosity Research Expo showcased Polytechnic research to the wider community. Keynote speaker Dr. Welby Ings, Associate Professor in Graphics at AUT, talked about the necessity to rethink research and traditional measures of educational success and to explore alternative, perhaps more creative avenues of expression. Polytechnic CE, Dr. Alan Hampton, explained his view of ‘What Counts as Research’ in the panel discussion: research is the enhancement and transfer of knowledge, something so integral to our role as an education provider that it should be part of all teaching staff practice. Following these discussions, eight staff research projects were presented ranging from cloud computing, apparel consumerism, international student expectations and experience, truck driver recruitment through to sports and youth, animal behaviour and aquaculture.

Our Strategic Priorities

Performance and Sustainability We recognise the importance of our employees, facilities, education and financial performance in being an innovative, high performing and sustainable institution. Moreover, we recognise that it is our responsibility to ensure our students have the knowledge and experience to contribute to a more sustainable society. We are dedicated to recognising our employees as central to our kaupapa and acknowledging their successes and to developing and maintaining high quality campus facilities. We aim to exceed all education and financial performance indicators, to be identified as an innovative tertiary institution and are working towards becoming an example of best practice in our operations and through our learning and teaching.

New Training Centre Official Opening In November 2011, Simon Bridges, National MP for Tauranga, opened the new Road Transport, Warehousing and Logistics Training Centre at Bay of Plenty Polytechnic. This 3,000m2 building is located in the heart of Greerton’s industrial area, Maleme Street and provides a reallife hands-on environment. Road transport students pick up and deliver goods to the warehouse, warehousing and distribution students unload and store goods and then reload goods back onto trucks to get redelivered to the client as required. Malcolm Hardy, Head of School of Applied Technology, says the new training centre is the first of its kind in the country. “The centre has been part of a long term vision to provide a real-life training facility for our students. The Polytechnic’s vision is to continue to provide quality training by working closely with local industry.” This new training facility has had strong industry support including Transqual ITO, TR Group, Crown, Amcor Kiwi Packaging, NZ Road Transport Associated, Retail Institute, Hire Pool and New Zealand Transport Agency. Mr Bridges was impressed with the new facility. “Logistics and road transport are key to our region’s economic success. We are the country’s premier export gateway and rely on an efficient and cost effective logistics distribution, so it’s fantastic that we now have this facility to meet the ever-increasing needs of the Bay.” Polytechnic truck driving programmes have been running out of Tauranga for over eight years and two years in Hamilton. December 2011 saw the first graduates of the new Warehousing and Distribution programme.

team of scientists and orchard workers have removed much of the Polytechnic’s 25 year old Kiwifruit orchard as part of plans to create a new horticulture training block, a greenhouse, a research centre and to allow for further expansion of other Polytechnic facilities. The removal of the orchard was also monitored as part of an carbon management research project with PlusGroup Horticulture running for the last three years. The removal allows a unique opportunity for scientists to take important measurements that would be otherwise be impossible without killing trees or vines.

ania Mullane, Group Leader Health and Humanities, has been accepted onto the Pacific Senior Manager Leadership Development Programme in 2012, run by the Ministry of Pacific Island Affairs and the Leadership Development Centre. Tania will join Senior Pacific Managers from the wider state sector that have been selected to nurture and develop a network of Pacific Managers and to develop leadership skills. “I am really looking forward to this programme,” says Tania. “This will also give the Polytechnic an opportunity to better meet the needs of the growing numbers of Pasifika people enrolling.”

n 2011, Bay of Plenty Polytechnic unveiled its new website. Maggie Hope, Marketing and Communications Manager, said “the new website has been designed to set the foundation to enable it to grow and add new functionality along the way. It is imperative that we deliver a product that is user-centred and presents a compelling and consistent message and that it provides all users with the information they are looking for.” Consultation for the project took several months and involved students, staff and community. The site was developed completely in-house and is testament to the skills and abilities of the Polytechnic staff.

Our Strategic Priorities

Relationships We are committed to building and maintaining relationships with students, employees, iwi, industry, education providers and community that create value for students, partners and stakeholders. Through our partnerships and collaborations, we aim to enhance learning outcomes for students and their employers, to ensure we respond expertly to our stakeholder needs and opportunities, and to build and maintain a positive reputation with key stakeholders. We ensure all our graduates enter the workforce capable of engaging in local and global communities with energy and integrity.

Rena - Polytechnic tutors and students respond to the call

“We took photos and video, and collected tissue samples of various marine animals and October 2011 is etched on the algae to measure base levels of minds of all Bay of Plenty residents. Polycyclic Aromatic Hydrocarbons, The 47,000 tonne container ship which are contaminants generally Rena ran aground on the Astrolabe found in oil,” said Keith Gregor, reef off the Bay of Plenty coast, Marine Studies tutor. “Our students spewing oil and debris into the were instrumental in processing ocean and onto our beaches. this data.” The silver lining of one of New Many of our students and groups of Zealand’s worst environmental staff on volunteer leave received oil disasters however, saw the local response training and participated community come together in an in beach cleanups along the Bay coastline. Numerous marine and unprecedented effort to minimise environmental students led teams of beach cleanup volunteers as well as the impact on our environment. bolstering the number of wildlife response volunteers on the coastline. Hundreds of tonnes of sticky, “All of our Environmental students are already trained in the handling toxic oil leaked into the sea, sand of native birds,” said Dean Tully, Group Leader for Marine Studies and turned black and marine life Environmental Management., “Their expertise and skills provided much was threatened by a blanket of needed help immediately where it was needed most – saving as many toxic sludge. From day one of the seabirds as possible.” Rena stranding, Bay of Plenty Polytechnic tutors, staff and Lending her animal handling students answered the calls for expertise, Animal Care tutor assistance from councils, salvors Dr. Lindsay Skyner, was seconded to and the community. They helped the oiled wildlife response team at out with environmental monitoring, Te Maunga, working as a self-titled beach clean up, catering, electrical ‘penguin wrangler’. Lindsay was and building work, wildlife rescue supported by a number of trained and operating rescue tenders. animal care and environmental tutors, as well as students. A team of seven Marine Studies tutors and students, joined by On the water, Marine Science tutor Dr Andrew Morgan, a member of the Dr. Chris Battershill from the Ngapona Tauranga reserves, was part of the Navy force patrolling the University of Waikato and Shane exclusion zone. Wasik, commercial diver and Mark Inglis, international skipper and Maritime tutor, was in charge of president of the New Zealand one of two 10m Rescue tenders that were on standby for emergency Underwater Association, hastily evacuation and to ferry people and supplies to and from the salvage site. undertook surveys to get a ‘baseline’ of the marine life in key Hospitality tutors and students lent their culinary talents to provide areas before the oil arrived. sustenance to the army of volunteers. Art and radio broadcasting students sought donations from cafes, businesses, community organisations and the general public and set up food runs such as ‘Larry’s Soup Kitchen’ and the ‘Rena Kai Run’, collectively amassing over 800 Facebook friends each contributing to food donations.

Photograph courtesy Wayne Tait photography

rganised in conjunction with Positive Ageing Tauranga, art and fashion students spent a day with a group of volunteers from Acadia Retirement Village and Tauranga’s Creative Fibre group to learn traditional crafts, including crocheting and knitting. Fashion tutor Leanne Wild said “we all saw this as a fantastic opportunity for our students to learn new skills while connecting with the wider community. It’s been fantastic to see so many ladies here of all ages sharing their passions and skills; we hope to make this an annual event.”

ommunity engagement has never been higher at the Polytechnic where new friendships and alliances have been forged with members of the public, other tertiary providers, organisations and local government. Strengthening its relationships with local secondary schools, Bay of Plenty Polytechnic’s Regional Secondary Schools Hospitality Culinary Fare provided a unique opportunity for 71 local secondary school students to display their hospitality skills, innovation and creativity. The competition was judged by Polytechnic hospitality staff and students and guest judge Kendal Grant, Head Chef Bluebiyou.

nce again, Bay of Plenty Polytechnic was pleased to sponsor the Export Achievers Award at the annual Bay of Plenty Export Awards. The award went to Lance Eagle, sales and marketing business manager for International Roofing Ltd. We also continue to support the annual Westpac Business Awards through our sponsorship of the Community Organisation Award. This year the Acorn Foundation was the winner.

he annual Bay of Plenty Sports Awards, hosted by Sport Bay of Plenty and sponsored by Bay of Plenty Polytechnic in 2011, recognise all aspects of sport. Polytechnic CE Dr. Alan Hampton says, “In recognising our sports people we show our dedication to work together to try to retain them in the Bay as inspiration and role models for all those who follow them.”

ine carpentry students and three tutors volunteered to share their expertise and practice their newly learned skills at Huharua Park, Plummer’s Point on the restoration of the historic Ongarahu Pa, the first Pa restoration ever filmed on the DIY Marae series. Student Andy Dickson says “It was an awesome experience – I’d turned up not really knowing what to expect. I really enjoyed the community feel of this project and I’m glad I got the opportunity to work on this pa site.”

thanksâ&#x20AC;?

We would like to thank the many organisations who have provided expertise, scholarships and awards to support our students:

Allied Industrial Engineering APRA New Zealand Architectural Designers New Zealand Inc. Bayer Bay of Plenty/Waikato Chartered Institute of Logistics and Transport Boonen Electronics Britten Motorcycle Co Ltd Certified Builders CIGWeld and NZ Safety Craigs Investment Partners Creative Tauranga Crown Lifts Department of Conservation envisionIT Extreme Automotive Fletcher Challenge The Gate Pa Masonic Lodge Graphisoft New Zealand Limited Ideal Electrical Supplies Tauranga Katikati Fruit Growers Inc. Kelly Tarlton Kiatronics KPMG Life Pharmacy Bayfair Mayers Music Planet Merial Ancare Mitre 10 Mega New Zealand Institute of Chartered Accountants New Zealand Institute of Management NZIOB NZIQS New Zealand Quantity Surveyors New Zealand Society of Conveyancers NZ Transport Agency Oasis Engineering Ltd Otorohanga Carriers Association Peter Bulfield PlaceMakers â&#x20AC;&#x201C; Mount Maunganui/Tauranga Pope Electrical PROTEL Repco RHB Charted Accountants Ltd Schneider Electrical Shoof International Limited Taioma Reef Society TECT The Tool Shed Total Trade Supplies Tranzqual Industry Training Organisation TrustPower Weldwell New Zealand Zintel Cogent We would also like to thank all parents, partners and families who have supported our students throughout their studies and helped them reach their potential.

Financial Reports our performance

Governance & Accountability For the year ended 31 December 2011

Role of the Council Bay of Plenty Polytechnic Council has overall responsibility for the strategic direction and management of the Polytechnic’s activities. This responsibility includes areas of stewardship such as: » formulating our strategic direction » managing principal risks facing Bay of Plenty Polytechnic » ensuring compliance with appropriate regulations and legislative requirements » ensuring the integrity of management control systems » safeguarding public interest » ensuring effective succession of elected members » reporting to students and the community. 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 membership ensures it is able to represent the best interests of students 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. Ministry appointed members: Ian Turner (Chair) Ian Turner is Managing Director of New Zealand Educational Tours Ltd, a Tauranga based company. A qualified 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 25 years of board experience, 15 of which he spent as Chair. Ian is eager to use his skills and experience to help enhance the benefits 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 property developer and hotelier Paul Bowker is Vice President of the Tauranga Chamber of Commerce and a Trustee 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.

Council appointed representatives: 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 current 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.

Thanks

Council appointed representatives Aroha Luttenberger, Fleur Sweeney and Paula Thompson served on the council until April 2011. Bay of Plenty Polytechnic would like to acknowledge and thank our previous council members for their dedication to the Polytechnic and hard work.

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

Academic Board 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.

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.

Communication / Reporting 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.

Division of Responsibility between Council and 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. These have had limited success during 2011 with poor attendance. The institution will be looking to implement new initiatives for 2012.

Internal Audit 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.

Risk Management 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 2011

In the financial year ended 31 December 2011, the Council and management of Bay of Plenty Polytechnic were responsible for: Âť the preparation of the financial statements and the judgements used therein Âť 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 2012

Ian Turner Council Chairperson

Dr. Alan Hampton Chief Executive

Paul Wollaston Finance Director

Independent Auditor’s Report To the readers of Bay of Plenty Polytechnic’s financial statements and statement of service performance for the year ended 31 December 2011

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 statement of service performance of the Polytechnic on her behalf. We have audited: • the financial statements of the Polytechnic on pages 39 to 76, that comprise the statement of financial position as at 31 December 2011, 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 statement of service performance of the Polytechnic on pages 32 to 35. Opinion In our opinion: • the financial statements of the Polytechnic on pages 39 to 76: – comply with generally accepted accounting practice in New Zealand; and – fairly reflect the Polytechnic’s: • financial position as at 31 December 2011; and • financial performance and cash flows for the year ended on that date; • the statement of service performance of the Polytechnic on pages 32 to 35 fairly reflects the Polytechnic’s service performance achievements measured against the performance targets adopted for the year ended 31 December 2011. Our audit was completed on 30 April 2012. This is the date at which our opinion is expressed. 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 AuditorGeneral’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 statement of service performance are free from material misstatement. Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements and statement of service performance. If we had found material misstatements that were not corrected, we would have referred to them in our opinion. An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial statements and statement of service performance. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the financial statements and statement of service performance, 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 statement of service performance 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. An audit also involves evaluating: • 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; • the adequacy of all disclosures in the financial statements and statement of service performance; and • the overall presentation of the financial statements and statement of service performance. We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and statement of service performance. 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. Responsibilities of the Council The Council is responsible for preparing financial statements that: • comply with generally accepted accounting practice in New Zealand; and • fairly reflect the Polytechnic’s financial position, financial performance and cash flows. The Council is also responsible for preparing a statement of service performance that fairly reflects its service performance achievements. The Council is responsible for such internal control as it determines is necessary to enable the preparation of financial statements and a statement of service performance that are free from material misstatement, whether due to fraud or error. 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 statement of service performance 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. Independence When carrying out the audit, we followed the independence requirements of the Auditor General, which incorporate the independence requirements of the New Zealand Institute of Chartered Accountants. 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

Matters relating to the electronic presentation of the audited financial statements and statement of service performance This audit report relates to the financial statements and statement of service performance of Bay of Plenty Polytechnic (the Polytechnic) for the year ended 31 December 2011 included on Polytechnic’s website. The Polytechnic’s Council is responsible for the maintenance and integrity of Polytechnic’s website. We have not been engaged to report on the integrity of Polytechnic’s website. We accept no responsibility for any changes that may have occurred to the financial statements and statement of service performance since they were initially presented on the website. The audit report refers only to the financial statements and statement of service performance named above. It does not provide an opinion on any other information which may have been hyperlinked to or from the financial statements and statement of service performance. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements and statement of service performance as well as the related audit report dated 30 April 2012 to confirm the information included in the audited financial statements and statement of service performance presented on this website. Legislation in New Zealand governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.

Equal Opportunities For the year ended 31 December 2011

Bay of Plenty Polytechnic is committed to the principle of equal employment opportunities and equal opportunity in education for all. Our vision is founded on an institutional dual heritage commitment to the principles and practices of Te Waka Hourua – ‘the twin hulled waka’. Te Waka Hourua is a movement and product that underpins the key value sets of ensuring that every participant within the Bay of Plenty Polytechnic is able to reach their fullest potential. 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 In 2011, EEO initiative included:

Health & Wellness The health and wellness programmes can significantly improve the overall health and wealth of our employees and the organisation and are an essential offering at Bay of Plenty Polytechnic.

Initiatives include the Employee Assistance Programme, health checks for employees, smoking cessation support, free access to the Aquatic Centre during lunchtimes, regular fresh fruit runs throughout the organisation, frequent workstation assessments, one day of volunteer leave for each employee and Wellness Week. In 2011, Wellness Week not only offered health-related presentations, back rubs, health screenings, but also laughing yoga, a comedy open mike night and an organisation-wide rowing competition.

Employee Development - Building Capabilities

staff gender Total number of staff

633

Number of male staff

259

Number of female staff

374

Females in senior roles

Mäori females in senior roles

Female academic staff

153

Female allied staff

230*

* Some employees are employed in both academic and allied positions

staff ethnicity Pakeha/European

37%

New Zealander

27%

Mäori

12%

Indian

1.6%

Other European

2.5%

Other Asian and Oceania

Other

Unknown 16% Bay of Plenty Polytechnic is committed to developing employees and with the help of the dedicated Staff Development Advisor has consistently grown staff capabilities throughout 2011: • Trained 92 staff members in-house on Microsoft skills • 18 staff members attended the 5-day leadership programme, a total of 72 to date • 23 staff members attended mentoring workshops, a total of 62 to date – 24 of these are now actively mentoring • Almost all new staff members have a buddy from their start date • Approximately 30 people attended a number of change management workshops • Developed and trained 33 teams in the use of the new REACH PDS system – Industry and Teaching currency is highlighted for discussion in this new system • 30 teams have developed their team strategic plan • A 360° reflection feedback survey for all managers was established to focus on the training and development of our managers – a strategy has been put in place to eliminate identified gaps • Two staff development days focusing on team building and new skills development.

Biculturalism 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. The Polytechnic has an active internal Mäori staff network and works in partnership with local hapu and iwi via Kaunihera Mäori and Haukainga to achieve social and economic development initiatives.

Systems & Processes In addition to the continuous evolvement of the Hub Staff Intranet, two new online initiatives are being developed; a skills and qualifications database that captures and reports the professional development and capability build and an online induction programme for new employees to become familiar with their new place of work.

Equal Education Opportunities For the year ended 31 December 2011

Hoea te waka – Paddle the waka The manifestation of Te Waka Hourua takes many forms, beginning with the powhiri held annually at both the Windemere and Bongard campuses. It is from this platform that the values of manaakitanga, whanaungatanga and kotahitanga flow out across the polytechnic – supporting, encouraging and, in some instances, demanding engagement with ahuatanga Mäori as a valid and critical component in reaching our potential as individuals and as an institution. 2011 saw the embedding of strategies aimed at building the confidence of staff and students to embrace their roles as active participants in the learning journey, deriving sustenance from and lending support to the other kaihoe (rowers) in our waka. Key strategies include holding bicultural days and specific training for employees on bicultural teaching practices. The approval process of new and redeveloped programmes ensures that the principles of Te Waka Hourua are integrated at every level. In 2011 Te Waka Hourua also manifested in the redevelopment of learning support provision to a more integrated and mutually supportive learning commons environment. Focused on the achievement of each and every student, Ako Awe is vigilant in its approach to identifying and eliminating teaching and learning practices that cause or perpetuate inequality – particularly in regards to learner completion outcomes for targeted groups as defined in the Tertiary Education Strategy.

äori Learners Mäori learner outcomes have been a priority for us for some years, with concerted efforts to achieve comparable outcomes with the rest of the student population used as a starting point for measuring progress. In more recent times, our efforts have gained greater clarity on supporting Mäori educational achievement in a way that validates their right to express themselves as Mäori. Aside from a minor glitch in 2009, which saw qualification completions for Mäori drop below 70%, completions increased from 73% in 2010 to 76% in 2011.

Mäori learners contributed to 30% of the institution’s EFTS, maintaining the result achieved in 2010. We view 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 learners 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 full-time programmes with the largest numbers of Mäori learners, completion rates ranged from 73% to 96%: • Nga Okawa a Tangaroa • Certificate in Health Care Assistance • Youth Guarantee • Te Timatanga - Certificate in Tertiary Study • Certificate in Commercial Road Transport

The New Zealand Diploma in Business also has a significant number of Mäori enrolments, with completions rates of 63%. The unique experiences and challenges facing Mäori learners remain at the forefront of our collective efforts towards educational achievement. Many of our Mäori learners are first generation tertiary learners who may not have the benefit of the ‘lived experience’ of tertiary study at home or within their Whanau. The development of Ako Awe represents a major step forward in meeting the diverse needs of our learners. In addressing the challenges facing some Mäori learners, we would be remiss to overlook the rich cultural experiences and perspectives these same learners bring with them. We are committed to providing opportunities for Mäori learners to utilise these frames of reference in the acquisition of new knowledge and skills. Moreover, the value that learners’ experiences and perspectives add to the collective learning journey provides additional motivation for our strategic approach to Mäori learners.

Full-Time MÄori Student programme Completion

Completion

School of Applied Science

84%

School of Applied Technology

65%

School of Business Studies

53%

School of Design and Humanities

83%

Bay of Plenty Polytechnic Total

76%

Completion data presented in the table differs from that featured in the Key Performance Indicators section. The percentages in the table represent the proportion of students that completed programmes during 2011.

Staff Research Outputs Bay of Plenty Polytechnic Staff Research Outputs 2011

Editorial Board Membership International Journal Hamerton, H.R. Journal of Community and Applied Social Psychology. Published by Wiley InterScience. New Zealand Journal Fraser, C. Journal of Applied Research (SITJAR), Southland Institute of Technology Hallam, D. Survey Quarterly. Honeyfield, J. Nursing Praxis in New Zealand. Published by the New Zealand College of Nurses. Wallingford, N. Journal of Applied Computing and Information Technology. Published by the Computing and Information Technology Research and Education New Zealand (CITRENZ).

Research Related Awards/Prizes/Fellowships International awards Goundar, S. Selected by Diplo Foundation as an Emerging Leader for the Digital World (http://archive1. diplomacy.edu/acp/el.asp).

Contribution To The Research Environment Generation of Externally Funded Research Hamerton, H. (2011). Guiding and supporting learners at Western Bay of Plenty PTEs. Ako Aotearoa funded project ($10,000).

Research Outputs Book/Monograph (Authored) Unpublished Dudson, M. & Cummings, G. (2011). An investigation into how sport can best meet the needs of youth aged 13-18 years in a semi-rural community. Tauranga: Bay of Plenty Polytechnic. International Journal (Refereed) Bather, A. & Tucker, R. (2011, March). Legitimacy theory and a compliance analysis of Tescoâ&#x20AC;&#x2122;s 2008 business review. International Review of Business Research Papers, 7(2), pp 137-156. Braakhuis, A.J. Hopkins, W.G. Lowe T.E. & Rush, E.C. (2011). Development and validation of a food-frequency questionnaire to assess short-term antioxidant intake in athletes. International Journal of Sport Nutrition and Exercise Metabolism April, 105-112. Crewther, B.T., Cook C. Cardinale, M., Weatherby, R.P. & Lowe, T. (2011) Two emerging concepts for elite athletes: The short term effects of testosterone and cortisol on the neuromuscular system and the dose response training role of these endogenous hormones. Sports Medicine 41(2), 103-123. Crewther, B.T., Cook, C.J., Lowe, T.E., Weatherby, R.P. & Gill N. (2011). The Effects of Short-Cycle Sprints on Power, Strength, and Salivary Hormones in Elite Rugby Players. J Strength Cond Res 25(1):32-9. Crewther, B.T., Lowe, T.E., Ingram, J. & Weatherby, R.P. (2010). Validating the salivary testosterone and cortisol concentration measures in response to short high-intensity exercise. J Sports Med Phys Fitness 50(1), 85-92. Gerhardt, C. & Fraser, C. (2011). Leveraging diversity: Learning from international approaches for optimal educational outcomes. New Voices in Psychology 7(1). 45-60. Morgan, A.D. (2011). Perspectives on effects-based management of New Zealand Exclusive Economic Zone Resources. Ocean and Coastal Management. 54: 652-657. Morgan, A.D. (2011). Patterns of distribution and abundance of the temperate sea cucumber Australostichopus mollis on a rocky subtidal reef. New Zealand Journal of Zoology. 38(3): 195-206. Paton, C.D., Lowe, T. & Irvine, A. (2010) Caffeinated chewing gum increases repeated sprint performance and augments increases in testosterone in competitive cyclists. Eur J Appl Physiol. 110(6), 1243-50. Winwood, P. W., Keogh, J. W. L. & Harris, N. K. (2011). The strength and conditioning practices of strongman competitors. Journal of Strength and Conditioning Research, 25(11), 3118-3128 Winwood, P. W., Keogh, J. W. L., Harris, N. K., & Weaver, L. M. (in press). Inter-relationships between strength, anthropometrics and strongman performance in novice strongman athletes. Journal of Strength and Conditioning Research.

National Journal (Refereed) Stanley, P., Fraser, C., & Spiller, D. (2011). Promoting Engagement and Learning in First Year University. Southland Institute of Technology Journal of Applied Research 1(1). Retrieved from http://sitjar.sit.ac.nz/Pages/ Publications.aspx?year=2011

Creative Outputs National solo exhibition Laraman, D. (2011) Hooked on Design. Exhibition at The Kestrel, Tauranga, 17 – 18 June.

Design output Laraman, D. Shrek sheep couture. Garment selected as a finalist at the 2011 World of Wearable Arts show, Wellington, 26 August and for exhibition at the World of Wearable Arts Museum, Nelson. Laraman, D. Several pieces selected for the New Zealand Fashion Designers show to showcase New Zealand designers as part of Rugby World Cup festivities, Vector Arena, Auckland, 19th October.

Conference Presentations Published refereed international conference proceedings Appanna, S. & Goundar, S. (2011). Reregulation and control in international education: What happens in private training establishments in New Zealand? In Educational integrity: Culture and values. Proceedings 5th Asia Pacific Conference on Educational Integrity. The University of Western Australia, 26 – 28 September (pp 1-9). Gheitasi, A., Al-Anbuky, A., Tek Tjing Lie. (2011). Impact of propagation of fault signals on industrial diagnosis using current signature analysis. Paper presented at the Universities Power Engineering Conference (AUPEC), 21st Australasian, Queensland, 25-28 September. 2011 and published in the Conference Proceedings. Goundar, S. (2011). Understanding the technology before getting clouded. In Data Engineering and Internet Technology (DEIT) 2011 – IEEE Conference Proceedings Bali, Indonesia, March. Goundar, S. (2011). Cloud Computing – Opportunities and Issues for Developing Countries. Paper presented at the APNG Conference in Hong Kong, February. Goundar, S. (2011). What is the Potential Impact of Using Mobile Devices in Education? In Proceedings of Special Interest Group on ICT and Global Development (SIG GlobDev) Fourth Annual Workshop, Shanghai, China - 3 December. Laraman, D. (2011). Celebration clothing. Paper presented at the New Zealand and Australian Costume and Textiles Symposium, Tauranga Art Gallery, Tauranga, 17 – 18 June. Laraman, D. (2011). Upcycling: Evolving design through user interaction. Paper presented at the London Fashion Colloquia. London College of Fashion, London, 21-22 September. Porter, S. (2011). Transforming Mathematical Tastes: A Twist of Lemon or a Pretzel? Paper presented at the 11th International Conference Mathematics Education – 21st Century at Grahamstown, South Africa, 11-17 September and published in the Conference Proceedings. Published refereed New Zealand conference proceedings Tucker, R. (2011). Legitimacy theory and a compliance analysis of Tesco’s 2008 business review. In: New Zealand Applied Business Education Conference (NZABE 2011): Rebuilding, Regrowth, Rejuvenation: Business, Education and Practice (R3BEP), Nelson, New Zealand, 10-12 October, 2011. Unpublished conference presentation Abernethy, G. & Piercy, G., (2011). Growing truck drivers: new recruits for a highly regulated industry. Presentation at the New Zealand Vocational Education & Training Research Forum, April, 2011. Abernethy, G. & Piercy, G., (2011). Growing truck drivers: new recruits for a highly regulated industry; progress report. Seminar ‘Reaching our potential Together’, Bay of Plenty Polytechnic, July 7-8, 2011. Ballard, W. (2011). Showcasing Subject Guides. Presentation to National Liaison Librarians Seminar ‘Reaching our potential Together’, Bay of Plenty Polytechnic, July 7-8, 2011. Cooper, B. (2011). Surfing and resurfacing the web with ATLAANZ. ATLAANZ Conference ‘Navigating the River’, Weltec, Wellington, New Zealand, Nov 30-Dec 2, 2011. . Fraser, C. (2011). Fostering a Collaborative Research Culture. Presentation to National Liaison Librarians Seminar ‘Reaching our potential Together’, Bay of Plenty Polytechnic, July 7-8, 2011. Fraser, C. & Simpson, P. (2011). Offshore – onshore: How international students’ expectations of the New Zealand academic environment compares to their lived experience. ATLAANZ Conference ‘Navigating the River’, Weltec, Wellington, New Zealand, Nov 30-Dec 2, 2011.

Unpublished conference presentation continued Gregor, K., Young, K., Overton, J. & Rapson, D. (2011). Monitoring Marine Reserves-How do we know if conservation is effective. Paper presented at the Society for Conservation Biology 25th International Congress for Conservation Biology: Engaging society in conservation. Auckland, 5-9 December. Hamerton, H., Morrison, L., Riini, D., Mercer, C. & McPherson. (2011). Evaluating Healthy Eating Healthy Action programmes in small Mäori communities in Aotearoa New Zealand. Poster presentation at the 25th Annual Conference of the European Healthy Psychology Society “Engaging with other health professions: Challenges and perspectives”. Crete, Greece, September 20 – 24, Hamerton, H., Riini, D., Mercer, C., McPherson, B. & Morrison, L. (2011). Evaluating Healthy Eating Healthy Action programs in small Mäori communities in Aotearoa, New Zealand. Paper presented at the Primary Health Care Research Conference: Inspirations, collaborations, solutions. Brisbane, Australia, July 13 – 15. Honey, S. (2011). Engaging Learners and Maximising Learning Outcomes. Presentation to National Liaison Librarians Seminar ‘Reaching our potential Together’, Bay of Plenty Polytechnic, July 7-8, 2011. Jenner, M. (2011). Resources – The Process from Selecting to Promoting. Presentation to National Liaison Librarians Seminar ‘Reaching our potential Together’, Bay of Plenty Polytechnic, July 7-8, 2011. Langdon, E. (2011). Teaching: Tried and True or Something Tried and New? Presentation to National Liaison Librarians Seminar ‘Reaching our potential Together’, Bay of Plenty Polytechnic, July 7-8, 2011. Reddy, J. & Revell, J. (2011). Developing Multimedia Resources. Presentation to National Liaison Librarians Seminar ‘Reaching our potential Together’, Bay of Plenty Polytechnic, July 7-8, 2011. Simpson, P. & Fraser, C. (2011). Offshore/onshore: the factors influencing international students’ study choices, and how their experiences meet, or differ from, their expectations. Curiosity Research Expo, Bay of Plenty Polytechnic, August 5, 2011. Te Kanawa, W. (2011). Our contribution to Mäori Retention and Success. Presentation to National Liaison Librarians Seminar ‘Reaching our potential Together’, Bay of Plenty Polytechnic, July 7-8, 2011.

Reports to External Bodies Masterate Mullane, T. (2011). Tutors without borders: Meeting the needs of Mäori learners in a mainstream tertiary organisation. Master of Arts in Mäori Development, AUT University, Auckland.

Miscellaneous Scholarly Activity Brief review/Magazine article Dudson, M. (2011). Athletes’ autonomy – Are they getting it? New Zealand Coach. New Zealand seminar/workshop Hamerton, H. & Fraser, C. (2011). Co-facilitators of a Writers’ Retreat for Bay of Plenty Polytechnic staff at Ohope Beach, 27 June – July 1, 2011. Hamerton, H.R. (2011). Report to Western Bay of Plenty Tertiary Providers Forum on research project Guiding and supporting learners in Western Bay of Plenty PTEs: Best Practice and Principles. Tauranga, 18th May. Laraman, D. Sustainable fashion workshop. The Kestrel, Tauranga, 16 June. Muncaster, S. (2011). Reproduction in Ballan wrasse: A step toward cleaner European aquaculture. Seminar presented at the joint University of Waikato / Bay of Plenty Polytechnic research seminar series, 21 July. Wilson, A. (2011). E-learning in Aotearoa-perspectives and challenges. Seminar presented at the joint University of Waikato / Bay of Plenty Polytechnic research seminar series, 24th March.

Consultancies International Fulljames, T. Member of International Review Panel for Oman Academic Accreditation Authority reviewing a University College, 12-20 May, 2011. Gregor, K. Programme co-ordinator/consultant for Fisheries Observer Training, Kiribati for the Ministry of Foreign Affairs and Trade. New Zealand consultancies Fulljames, T.J. Member of New Zealand Qualifications Authority pool of External Evaluators reviewing a tertiary institution 6-7 April and 19-23 September . Hamerton, H.R. Member of New Zealand Qualifications Authority evaluation team reviewing three tertiary institutions, 7-9 March, 7 June, 7-8 November, 2011.

Commercial Outputs Software products Wallingford, N. (2011). A web-based application to create and develop research applications [software]. Tauranga: Bay of Plenty Polytechnic.

Key Performance Indicators For Bay of Plenty Polytechnic Investment Plan 2011-2013

In the Investment Plan 2011-2013 negotiated with the Tertiary Education Commission (TEC), the Polytechnic established a number of objectives to be achieved in 2011. These are reported on in detail in the following pages. Please note that KPI calculations are based on information taken directly from our Student Management System. While every effort has been made to correlate this data with that published on the TEC Workspace website, there may be some variances due to more recent data being included in our calculations. It is also important to note that information related to course and qualification completions may change following the April Single Data Return (SDR).

Plan KPI

Measure/Indicator

Forecast Actual 2010 2010

Target Result as at 2011 31 December 2011

(Base Year)

Dual Heritage Te Waka Hourua Enhance Mäori learner participation and achievement through i. increasing or sustaining overall participation rate in

Mäori enrolments (EFTS) as a percentage of total EFTS

29%

ACHIEVED – 30%

• Levels 1-3

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

18%

17%

ACHIEVED – 18%

• Levels 4 and above

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

11%

12%

ACHIEVED -13%

ii. 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

69%

74%

72%

ACHIEVED – 77%

• Levels 4 and above

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

71%

72%

NOT ACHIEVED – 71%

iii. increasing the level of Mäori students completing qualifications at • Levels 1-3 • Levels 4 and above

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

>61%

65%

64%

ACHIEVED – 74%

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

>45%

57%

55%

ACHIEVED – 57%

iv. 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

26%

22%

27%

NOT ACHIEVED – 22%1

• Levels 4 and above

Rate of progression for Mäori students from levels 4 and above

26%

29%

27%

ACHIEVED – 40%2

v. 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

47%

57%

48%

ACHIEVED – 68%

• Levels 4 and above

Rate of retention for Mäori students at levels 4 and above

58%

57%

59%

ACHIEVED – 62%

1 2

Progression data is sourced from the TEC Workspace. Ibid

Plan KPI

Measure/Indicator

Forecast Actual 2010 2010

Target Result as at 2011 31 December 2011

(Base Year)

Strategic Direction Objective - Performance Monitoring Teaching and Learning

Increase learner progression and retention by i. increasing the proportion of funded students under 25 enrolled in qualifications at level 4 and above • SAC funding source

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%

54%

62%

NOT ACHIEVED – 60%3 While the target was not met, there was an increase of 6% from 2010.

• Through partnerships at Level 7 (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

Est 5%

N/A

Est 9%

NOT ACHIEVED – 6% This figure is hard to predict as it depends on how many students move to degrees each year. The 2010 estimate was 5% and we achieved 6%. These can ever only be an estimate as the students enrol with the respective institutions and therefore they are not BoPP EFTS.

ii. 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

33% (TEC estimate)

25%

34%

NOT ACHIEVED – 22%4 The TEC statistics for this KPI pick up short awards at this level for which there is no natural progress to higher level of study. For those programmes that can progress the 27% achievement would be on target.

• Levels 4 and above

Rate of progression for SAC EFTS from levels 4 and above

26%

30%

27%

ACHIEVED – 34%5

iii. 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

39%

44%

40%

ACHIEVED – 62%

• Levels 4 and above

Rate of retention for SAC EFTS at levels 4 and above

62%

59%

63%

ACHIEVED – 69%

See Strategic Plan table for a description of strategies introduced to achieve the target. Progression data sourced from the TEC Workspace. 5 Ibid 3 4

Plan KPI

Measure/Indicator

Forecast Actual 2010 2010

Target Result as at 2011 31 December 2011

(Base Year)

Strategic Direction Objective - Performance Monitoring Teaching and Learning

Enhance foundation skills and progression of learners in Levels 1-3 qualifications by i. foundation learning (FL) designated programmes are assessed using FL assessment tool

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

N/A

80%

ACHIEVED – 95%

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

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

N/A

80%

NOT ACHIEVED – Students in 50% of the assessed programmes showed progression. Staff identified the length of the time required to complete the assessment as a possible reason for the lack of progress in some programmes. BoPP will use the snapshot assessment in 2012.

Increase learner completion rates in i. all courses (SAC EFTS) • Levels 1-3

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

70%

69%

75%

ACHIEVED – 80%

• Levels 4 and above

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

75%

77%

ACHIEVED – 79%

ii. all qualifications (SAC EFTS) • Levels 1-3

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

60%

62%

65%

ACHIEVED - 77%

• Levels 4 and above

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

60%

57%

70%

NOT ACHIEVED – 69% This is a big increase on 2010 and only very marginally under the 70% target. This could still increase to 70% or more when the April SDR is run and picks up additional results.

iii. 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

72%

75%

ACHIEVED – 77%

• Levels 4 and above

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

69%

75%

73%

ACHIEVED – 79%

Plan KPI

Measure/Indicator

Forecast 2010

Actual 2010

Target 2011

Result as at 31 December 2011

(Base Year)

iv. student 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

65%

70%

ACHIEVED – 74%

• Levels 4 and above

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

60%

56%

70%

NOT ACHIEVED – 65% Although the target was not met, the qualification completion rate increased by 9% over the last two years - 56% in 2010 to 65% in 2011.

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

International student EFTS as a percentage of total EFTS

1.6%

2.1%

Enhance business and financial performance through i. profitability – achieve an operating surplus as % of total revenue (covenant range 3-5%)

Operating surplus as a percentage of total revenue

ACHIEVED – 5.2%

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

Total debt as a percentage of total capital assets

0.5%

6.0%

ACHIEVED - 0.0%

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

Operative surplus plus gross interest to gross interest

40.0

4.0

ACHIEVED – 751.6 Times. No bank debt means that the only interest cost was amortised interest on EECA loans.

iv. achievement of Investment Plan SAC EFTS

Actual SAC EFTS as a percentage of forecast SAC EFTS

100%

ACHIEVED – 100.2%

v. develop Capital Management System

Awareness of Capital Management System

Awareness: Low

Awareness: High

PARTIALLY ACHIEVED – Medium. Full CAM system not yet developed and promoted.

vi. maintain relevant and current Risk Management Matrix (RMM)

Currency of RMM

RRM current for 2010

RMM current for 2011

ACHIEVED

NOT ACHIEVED – 2.4%6 Although the target was not met, the percentage of international student enrolments is trending upwards - 2.1% in 2010 to 2.4% in 2011.

Financial Performance

See Strategic Plan table for a description of strategies introduced to achieve the target.

EFTS For the year ended 31 December 2011

EFTS Trend by School Applied Science

2011 2010 2009 2008 2007 2006 2005 2004

Business Studies

Applied Technology

efts

Design & Humanities

First Aid

779

858

746

873

773

991

743

868

701.4

1030.9

770.9

743.3

733.6

780.6

809

629

956.2

821.3

714.7

608.8

833

877.4

657.2

578.4

560.1

967.3

590.6

601.3

483

547.1

993.1

674

659.2

348.7

School of Applied Science

School of Applied Technology

2011 2010 2009

Government Funded EFTS International EFTS Other EFTS Number of Students Level 1-3 Level 4-5 Level 6+

664 16 99 1687 56% 11% 32%

Government Funded EFTS International EFTS Other EFTS Number of Students Level 1-3 Level 4-5 Level 6+

666 5 75 1600 63% 18% 20%

Ethnicity M채ori Pacific Islander International Female Disabled

43% 39% 41% 2% 2% 3% 2% 0% 2% 38% 38% 32% 5% 6% 6%

Ethnicity M채ori Pacific Islander International Female Disabled

21% 21% 21% 3% 3% 2% 0% 1% 1% 7% 7% 9% 5% 5% 6%

689 6 78 2,037 56% 13% 31%

642 10 49 1,712 60% 12% 28%

School of Business Studies

658 12 73 2,198 61% 22% 17%

577 11 183 2,553 57% 33% 10%

School of Design & Humanities

2011 2010 2009

Government Funded EFTS International EFTS Other EFTS Number of Students Level 1-3 Level 4-5 Level 6+

793 47 18 1725 25% 28% 47%

Government Funded EFTS International EFTS Other EFTS Number of Students Level 1-3 Level 4-5 Level 6+

774 13 86 1690 33% 48% 19%

Ethnicity M채ori Pacific Islander International Female Disabled

21% 17% 14% 4% 1% 1% 1% 2% 2% 60% 65% 63% 7% 8% 6%

Ethnicity M채ori Pacific Islander International Female Disabled

35% 35% 37% 2% 2% 1% 1% 0% 0% 78% 78% 77% 9% 9% 8%

931 47 13 3,345 35% 20% 45%

969 56 6 4,360 45% 20% 35%

EFTS from Other Insitutions Studying on BoPP Campuses

2011 2010 2009

AUT 81 69 39 University of Waikato 459 472 404 Waiariki Institute of Technology 244 192 149 Wintec 28 15 0 Otago Polytechnic 10 0 0

782 5 79 1,917 34% 47% 20%

684 1 57 1,634 36% 49% 15%

5year

Five Year Performance Summary For the year ended 31 December 2011

<------------------------NZIFRS------------------------> 2011 $’000 25,877 12,492 4,669 43,038

2010 $’000 28,084 11,058 4,321 43,463

2009 $’000 30,906 9,349 3,830 44,085

2008 $’000 22,942 7,292 3,295 33,529

2007 $’000 23,258 7,004 3,209 33,471

25,391 11,015 590 3,730 40,726

24,578 10,212 590 3,185 38,565

22,833 9,474 590 2,590 35,487

19,625 9,014 590 2,423 31,652

21,259 8,667 590 2,256 32,772

$2,312

$4,898

$8,598

$1,877

$699

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

5.60% 1.20% 1.10% 1.8 0.52 $5,221 18% $1.17 $3,308 112% $93 $1.13 $10,568 $6,856 $1,037 $20,802

Key Student and Staff Performance Indicators Achieved MoE EFTS Funded MoE EFTS International EFTS Other EFTS Total Total Student Numbers

2011 2,897 2,847 81 278 3,256 6,702

2010 3,060 2,969 71 243 3,374 9,443

2009 2,872 2,675 78 296 3,247 10,253

2008 2,565 2,619 63 324 2,952 9,869

2007 2,756 2,756 56 289 2,945 13,707

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

$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

$7,306 $2,259 $9,759 85% 71% 71% 8.9% 165 173 0.95

Revenue Government funding Student tuition fees Other income Total Expenses Personnel Other expenses Crown asset depreciation Non-crown asset depreciation Total

Surplus ($’000) 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)

Statement of Financial Position For the year ended 31 December 2011

financial position $’000

2011 Actual % Ass

$’000

2011 Budget % Ass

$’000

2010 Actual % Ass

5 6 7

5,810 8,475 283 14,568

6.0% 8.8% 0.3% 15.0%

4,358 7,161 208 11,727

4.6% 7.5% 0.2% 12.3%

4,434 7,887 336 12,657

4.7% 8.4% 0.4% 13.5%

8 9 9 10 11

44 71,456 10,080 15 637 82,232

0.0% 73.8% 10.4% 0.0% 0.7% 85.0%

137 69,565 13,678 500 83,880

0.1% 72.8% 14.3% 0.0% 0.5% 87.7%

73 71,699 8,986 604 81,363

0.1% 76.3% 9.6% 0.0% 0.6% 86.5%

96,800

100.0%

95,607

100.0%

94,020

100.0%

12 13

3,503 12

3.6% 0.0%

4,725 12

4.9% 0.0%

3,511 35

3.7% 0.0%

14 15

1,419 8,479 13,413

1.5% 8.8% 13.9%

1,089 7,205 13,031

1.1% 7.5% 13.6%

1,309 8,024 12,879

1.4% 8.5% 13.7%

0.0%

111 111

0.1% 0.1%

90 90

0.1% 0.1%

90 112

0.1% 0.1%

Total Liabilities

13,524

14.0%

13,121

13.7%

12,991

13.8%

Net Assets

83,276

86.0%

82,486

86.3%

81,029

86.2%

Equity General equity Revaluation reserve Other reserves Council created reserves

57,924 23,910 1,387 55

59.8% 24.7% 1.4% 0.1%

56,817 24,227 1,387 55

59.4% 25.3% 1.5% 0.1%

55,677 23,910 1,387 55

59.2% 25.4% 1.5% 0.1%

Total Equity 83,276 86.0% The accompanying notes form part of these financial statements.

82,486

86.3%

81,029

86.2%

Notes

Assets Current Assets Cash and cash equivalents Trade and other receivables Prepayments Total Current Assets Non-Current Assets Other financial assets Property Plant and equipment Assets held for sale 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 Interest-bearing loans and borrowings Provisions Total Non-Current Liabilities

income Statement of Comprehensive Income For the year ended 31 December 2011

$’000

2011 Actual % Rev

$’000

2011 Budget % Rev

$’000

2010 Actual % Rev

23,081 235 2,561 25,877

53.6% 0.5% 6.0% 60.1%

23,082 475 2,380 25,937

54.0% 1.1% 5.6% 60.7%

24,912 562 2,610 28,084

57.3% 1.3% 6.0% 64.6%

11,401 1,091 12,492

26.5% 2.5% 29.0%

11,797 1,268 13,065

27.6% 3.0% 30.6%

10,103 955 11,058

23.2% 2.2% 25.4%

1,617 550 1 2,158 4,326

3.8% 1.3% 0.0% 5.0% 10.1%

1,296 334 1,912 3,542

3.0% 0.8% 0.0% 4.5% 8.3%

1,443 571 33 1,989 4,036

3.3% 1.3% 0.1% 4.6% 9.3%

343

0.8%

167

0.4%

285

0.7%

43,038

100.0%

42,711

100.0%

43,463

100.0%

Notes

Income

Government Funding - EFTS - ITO’s - Other

Student Tuition Fees - Domestic - International

Other Income - Trading - Accommodation - Dividend - Other

Finance Income - Interest Total Income Expenses Employee benefit expenses Consumables Other expenses Depreciation Amortisation Total Operating Expenses

% Exp

Surplus from continuing operations

25,391

62.4%

25,676

63.3%

24,578

63.8%

4b 4c 9 11

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

10.2% 16.8% 10.1% 0.5% 100.0%

4,456 5,887 4,518 40,537

11.0% 14.5% 11.1% 0.0% 100.0%

3,871 6,282 3,639 136 38,506

10.1% 16.3% 9.5% 0.4% 100.0%

2,315

2,174

4,957

2,312

2,142

4,898

Loss from discontinued operations Surplus

% Exp

Surplus from continuing operations before finance costs Finance costs

% Exp

2,312

Other Comprehensive Income Property impairments (65) TOTAL COMPREHENSIVE INCOME 2,247 The accompanying notes form part of these financial statements.

2,142

4,898

2,142

(317) 4,581

equity

Statement of Changes In Equity For the year ended 31 December 2011

Note

General Asset Equity Revaluation Reserve $’000 $’000

Council Reserves

Other Reserves

Total

Budget

$’000

865 522

75,926 4,898 522 (317)

73,070 2,655 -

Balance at 1 January 2010 Surplus/(deficit) Capital contribution from crown Other comprehensive income

50,779 4,898 -

24,227 (317)

55 -

Balance at 31 December 2010

55,677

23,910

1,387

81,029

75,725

General Asset Equity Revaluation Reserve $’000 $’000

Council Reserves

Other Reserves

Total

Budget

$’000

55 -

1,387 -

81,029 2,312 (65)

80,344 2,142 -

1,387

83,276

82,486

Note

Balance at 1 January 2011 Total comprehensive income Other comprehensive income

55,677 2,312 (65)

23,910 -

Balance at 31 December 2011 57,924 23,910 The accompanying notes form part of these financial statements.

Statement of Cash Flows

cash flows For the year ended 31 December 2011

Notes

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

Cash was disbursed to: Payments to employees Payments to suppliers Interest paid

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

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

Net Cash Flows from Investing Cash Flows from Financing Activities Cash was provided from: TEC capital grant Cash was applied to: EECA loan BNZ loan facility

Net Cash Flows from Financing

2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

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

26,702 15,096 167 3,808 45,773

27,854 10,481 299 4,542 43,176

25,256 10,970 0 36,226

26,144 14,000 33 40,177

24,520 11,261 54 35,835

6,721

5,596

7,341

10 1

83 0

15 33

5,080 229

7,889 0

9,171 482

5,309

7,889

9,653

(5,298)

(7,806)

(9,605)

0 0

522 522

47 0 47

0 0 0

78 900 978

(47)

(456)

cash flows 2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

Net increase/(decrease) in Cash and Cash Equivalents

1,376

(2,210)

(2,720)

Cash and cash equivalents at beginning of period

4,434

6,568

7,154

5,810

4,358

4,434

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

2 1,354 2 1,000 1,000 1,000 4,358

11 1,240 3 1,070 1,000 1,110 4,434

Notes

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 Adjustments for: Depreciation Amortisation Net (gain) / loss on disposal of property, plant and equipment Fair value (gain) / loss on investment Dividend received Interest paid EECA Loans 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 Net Cash from Operating Activities The accompanying notes form part of these financial statements.

2,312

4,898

4,124 196 15

3,639 136 18

29 (1) 3

63 (33) 7

(588) 53 (8) 131 455

(1,297) (128) (1,109) 61 1,086

6,721

7,341

Notes to the Financial Statements For the year ended 31 December 2011

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. It provides full-time and part-time tertiary education in New Zealand. The financial statements of Bay of Plenty Polytechnic for the year ended 31 December 2011 were authorised for issue in accordance with a resolution of the councillors on 27 March 2012. 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, 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 ($â&#x20AC;&#x2122;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 (NZIFRS), 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 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.

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 Institute 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: • General Equity • Council Created Reserves • Asset Revaluation Reserve • Other Reserves note 2f 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 includes 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 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 consists of cash and cash equivalents as defined above, net of outstanding bank overdrafts. 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 uncollectible 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 loan 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 uncollectible, 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. 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 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 are 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 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. Depreciation Depreciation is calculated on a straight-line basis over the estimated useful life of the asset as follows: Class of Asset Rate Buildings 1.0% - 4.0% Crown buildings 1.0% - 10.0% Infrastructure 2.0% - 10.0% Library books 10.0% Plant & teaching equipment 5.0% - 20.0% Office equipment 10.0% Furniture & fittings 6.5% - 10.0% Vehicles 20% Computer Hardware 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 arm’s length transaction as at the valuation date.

Revaluation of property, plant and equipment is carried out on a 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. 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. 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. 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.

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 this Institute 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 exits. Research costs Research costs are recognised as an expense in the Statement of Comprehensive Income in the year in which it is incurred. note 2p Provisions Provisions are recognised when the 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 Polytechnicâ&#x20AC;&#x2122;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;˘ 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 â&#x20AC;˘ 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. note 2s 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.

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 Polytechnicâ&#x20AC;&#x2122;s normal depreciation policy for similar assets.

note 2u Financial Instruments The 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 6 December 2010.

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 Schools of Study Cost of Services School Cost of Services in note 17 shows gross cost of programme delivery plus allocated overhead. Overheads have been allocated directly to output activity where possible. The basis of allocation depends on the nature of the activity or actual student activity measured by the number of equivalent full-time students enrolled. The method of allocation is described in note 16. note 2x 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.

note 2y Changes in Accounting Policies There have been no changes in accounting policies for the year ended 31 December 2011. Adoption of the revised NZ IAS 24 Related Party Disclosures The revised NZ IAS 24 Related Party Disclosures (Revised 2009) has been adopted for the year ended 31 December 2011. The effect of adopting the revised NZ IAS 24 is: • more information is required to be disclosed about transactions between the Institute and government-related entities; and • commitments with related parties now require disclosure Standards, amendments and interpretations issued but not yet effective that have not been early adopted and are relevant to the Institute 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 2013. The Institute has not yet assessed the effect of the new standard and expects it will not be early adopted. • FRS-44 New Zealand Additional Disclosures and Amendments to NZ IFRS to harmonise with IFRS and Australian Accounting Standards (Harmonisation Amendments) - These were issued in May 2011 with the purpose of harmonising Australia with New Zealand’s accounting standards with source IFRS and to eliminate many of the differences between the accounting standards in each jurisdiction. The amendments must first be adopted for the year ended 31 December 2012. The Institute has not yet assessed the effects of FRS-44 and the Harmonisation Amendments. As the External Reporting Board is consulting on a new accounting standards framework for public benefit entities, it is expected that all new NZ IFRS and amendments to the existing NZ IFRS with a mandatory effective date for annual reporting periods commencing on or after January 2012 will not be applicable to public benefit entities. This means that the financial reporting requirements for public benefit entities are expected to be effectively frozen in the short term. Accordingly, no disclosure has been made about new or amended NZ IFRS that exclude public benefit entities from their scope. note 2z Critical Judgements in Applying Accounting Policies Management has exercised the following critical judgements in applying accounting policies for the year ended 31 December 2011:

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.

note 3a

Government Funding

EFTS (Equivalent Full Time Students) ITOs (Industry Training Organisations)

Other government funding Childcare operational grant TOPS/Skill NZ Supplementary and special needs grants Quality reinvestment fund Youth Guarantee additional payment ITP business links

note 3b

2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

23,081 235

23,082 475

24,912 562

23,316

23,557

25,474

974 175 640 513 259 -

1,018 180 729 205 248 -

1,076 194 804 180 356

2,561

2,380

2,610

25,877

25,937

28,084

2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

11,401 1,091

11,797 1,268

10,103 955

12,492

13,065

11,058

Student Tuition Fees

Domestic International

note 3c

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

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

Total Other Income

2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

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

449 165 36 146 73 44 52 29 31 22 11 9 1 16 6 25 181

371 247 46 170 77 79 63 56 43 15 21 16 19 18 3 26 173

1,617

1,296

1,443

550

334

571

792 1,321 16 3 26

846 936 115 15

557 1,357 48 5 22

2,158

1,912

1,989

4,326

3,542

4,036

note 3d

note 4a

Finance Cost / Income 2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

Bank loans and overdrafts

Total Finance Costs (on historical cost basis)

Interest earned on bank deposits

343

167

285

Total Finance Income (on historical cost basis)

343

167

285

2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

Wages and salaries Sub contracting Employee welfare expenses Post employment benefits Increase / (Decrease) in employee entitlements

25,169 90 132

25,516 110 50

24,412 104 62

Total Employee Benefit Expenses

25,391

25,676

24,578

Employee Benefit Expenses

note 4b

note 4c

Consumables 2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

Consumables

4,156

4,456

3,871

Total Consumables

4,156

4,456

3,871

2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

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

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

2,762 2,603 90 389 43 -

2,682 2,967 98 358 91 23 63

Total Other Expenses

6,856

5,887

6,282

Other Expenses

Notes: Audit of financial statements for 2010 includes $15k unaccrued fees relating to the audit of the 2009 annual report.

note 5

Cash and Cash Equivalents Bay of Plenty Polytechnic maintains sufficient funds on hand or 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

2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

3 119 20 3 17

5 593 20 50

11 24 20 3 1,196

70 578

70 620

70 110

810

1,358

1,434

1,000 1,000 1,000 1,000 1,000

1,000 1,000 1,000

5,000

3,000

5,810

4,358

4,434

0.2

2.40 3.10 3.25 2.50

National Bank call ASB call

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:

National Bank term deposit National Bank term deposit Kiwibank term deposit Kiwibank term deposit ASB term deposit

Total Cash and Cash Equivalents

Maturity Date 19/1/2012 26/1/2012 19/1/2012 26/1/2012 20/3/2012

Interest Rate % 3.75 3.75 3.75 3.72 3.66

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

810 5,000

1,358 3,000

1,434 3,000

5,810

4,358

4,434

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. 2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

Accrued income Staff computer purchase loans Receivables less Provision for doubtful debts

156 4 8,332 (17)

6 7,185 (30)

174 7 7,735 (29)

Total Trade and Other Receivables

8,475

7,161

7,887

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

2011 Gross Impairment 8,266 151 (1) 28 (1) 47 (14) 8,492 (17)

Net 8,265 150 27 33 8,475

2010 Gross Impairment 7,690 151 (3) 28 (8) 47 (17) 7,916 (29)

Net 7,689 148 20 30 7,887

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

2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

283

208

336

Other 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. 2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

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

1 3 40

14 3 120

3 3 67

Total Other Financial Assets

137

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 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. The following table analyses the basis of the valuation of classes of financial instruments measured at fair value on the Statement of Financial Position:

Quoted market price Observable inputs Significant non-observable inputs

2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

4 40 44

17 120 137

6 67 73

note 9

Property, Plant & Equipment Crown Title

Polytechnic Title Plant Motor Computer Work in and Vehicles Hardware Progress

Total

Property

$’000

32,511

39,188

6,554

428

1,451

553

80,685

343

(988)

(292)

Equipment

Year ended 31 December 2011 Net of accum. depreciation, at 1 January Revaluation at 31 December 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 Net of accumulated depreciation, at 31 December At 1 January 2011 Cost or fair value Accumulated depreciation

At 31 December 2011 Cost or fair value Accumulated depreciation

643

(661)

1,353 (7) (80) 7 (1,498)

1,133 (463) 440 (1,050)

202 (161)

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

1,724 -

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

31,850

39,606

6,616

469

1,998

997

81,536

33,172 661

40,418 1,230

16,126 9,572

1,583 1,155

6,704 5,253

553 -

98,556 17,871

32,511

39,188

6,554

428

1,451

553

80,685

33,172 1,322

42,328 2,722

16,797 10,181

1,785 1,316

6,263 4,265

997 101,342 - 19,806

31,850

39,606

6,616

469

1,998

997

81,536

Crown Title

Polytechnic Title Plant Motor Computer Work in and Vehicles Hardware Progress

Total

Property

Year ended 31 December 2010

$’000

Net of accumulated depreciation, at 1 January Revaluation at 31 December 2010

33,172

31,723

5,201

486

1,189

3,733

75,504

3,426

(3,426)

(661)

5,474 (15) (190) (1,230)

2,293 (130) 111 (923)

161 (219)

869 (52) 52 (606)

246 -

9,043 (182) (15) 163 (190) (3,639)

32,511

39,188

6,554

428

1,451

553

80,685

33,172 -

31,723 -

13,960 8,759

1,422 936

5,888 4,699

3,733 -

89,898 14,394

33,172

31,723

5,201

486

1,189

3,733

75,504

33,172 661

40,418 1,230

16,126 9,572

1,583 1,155

6,704 5,253

553 -

98,556 17,871

32,511

39,188

6,554

428

1,451

553

80,685

Equipment

Transfer from work in progress 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 2010 Cost or fair value Accumulated depreciation

At 31 December 2010 Cost or fair value Accumulated depreciation

Impairment An amount of $291,240 in work in progress was recognised as an impairment based on preliminary work and consents incurred on student accommodation proposals that are now no longer being pursued. This amount has been recognised as an expense in the statement of comprehensive income. An amount of $65,000 in buildings was recognised as an impairment for a lift that was decommissioned and replaced. This amount has been recognised as a property impairment in the statement of comprehensive income. The fair value of $15,000 has been classified as held for sale in note 10. Revaluations An independent valuation was obtained to determine the fair value of land and buildings. Fair value represents the highest and best use, except when it is exceeded by both replacement cost and value and use. Highest and best use is inferred by assuming profit maximising behaviour by the owner. This revaluation was done by Roger Hills FNZIV FPINZ, independent registered valuer, of the firm Hills Haden Ltd. The effective date of the revaluation was 31 December 2009. 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 2011 is an amount of $997,074 (2010: $552,629) relating to expenditures regarding Work in Progress.

note 10

Assets Held for Sale

Year ended 31 December 2011

note 11

2011 Actual $’000

Opening balance as at 1 January (fair value) Additions - Lift Disposals Net gain / (loss) on disposal

15 -

Closing Balance as at 31 December (fair value)

2011 Budget $’000

2010 Actual $’000 -

Intangible Assets 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 2011 Net of accumulated depreciation, at 1 January Additions Disposals Amortisation charge for the year Net of accumulated amortisation, at 31 December At 1 January 2011 Cost or fair value Accumulated amortisation and impairment

At 31 December 2011 Cost or fair value Accumulated amortisation and impairment

2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

604 229 -

258 482 -

(196)

(136)

637

604

1,758 1,154

1,276 1,018

604

258

1,987 1,350 637

1,758 1,154 -

604

note 12

Trade and Other Payables

Trade payables Other payables Interest payables

2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

2,759 744 -

3,525 1,200 -

2,498 1,013 -

3,503

4,725

3,511

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 consists 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

Maturity

Interest Rate %

2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

Current EECA loans - unsecured

15-Feb-12

Non-current EECA loan II - unsecured

EECA loan Bay of Plenty Polytechnic has had 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 5 years. The balance owing has been recalculated at 8% interest to represent a fair value. 2011 Actual $’000 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

57 (47) 3 (1) 12

2011 Budget $’000

2010 Actual $’000

130 (78) 8 (3) 57

note 14

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

Employee Annual Leave Entitlements

2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

At 1 January Additions during the year Utilised during the year

1,293 2,534 (2,422)

1,072 0 0

1,230 2,518 (2,455)

1,405

1,072

1,293

16 (2)

17 0

17 (1)

1,419

1,089

1,309

Employee Sick Leave Entitlements At 1 January Movement for the year

Total Current Provisions

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

90 21

90 0

111

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

note 15

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.

note 16

2011 Actual $’000

2011 Budget $’000

2010 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

6,862

7,000

6,736

62 475 875 204 1

205 -

50 208 1,025 5

Total Revenue Received in Advance

8,479

7,205

8,024

Basis of Overhead Allocation Bay of Plenty Polytechnic’s policy is to allocate all overheads to Schools. The following describes the overhead activity, the basis for allocation and the amount allocated to Schools. This is the full cost of overhead activities and excludes income generated by the activity which is disclosed separately in the financial statements. The overhead allocation process takes place in three steps: First, depreciation is allocated to both teaching and non-teaching activities based on estimated floor space occupied or by units of use. Second, non-teaching service activities (including allocated depreciation) are allocated to all activities which utilise the services of that activity. Third, remaining unallocated non-teaching activities (including executive) are allocated to Schools by EFTS (equivalent full-time students) generated.

Overhead Activity Executive Staff & Student Support Business Development Unit Academic Directorate Mäori Education Directorate Information Centre International Department Marketing Building Services Childcare Cleaning Services Information System Services

Method of Allocation

EFTS EFTS EFTS EFTS EFTS EFTS EFTS EFTS Floor space EFTS Floor space Number of terminals Custodial Services Floor space Library EFTS Copy Centre Volume Financial Services % bottom line MIS Administration EFTS Human Resources FTE Staff Net Total Allocated (Excluding Depreciation)

2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

2,237 1,286 280 1,597 232 447 556 1,211 3,397 1,184 559 1,907

1,467 1,221 364 1,664 275 469 630 1,310 3,126 1,273 581 1,868

1,990 1,170 332 1,520 197 431 1,509 2,983 1,145 549 1,685

498 890 (56) 1,135 166 530 18,056

641 871 (84) 1,124 186 586 17,572

581 827 (75) 1,200 152 475 16,671

note 17

Cost of Services The table below summarises the cost of services by School. This information is utilised in determining the total cost of programme delivery expressed as a cost per equivalent full-time student (EFTS). Applied Business Studies Technology $’000 $’000

Applied Design & Sciences Humanities $’000 $’000

Total $’000

2011 Actual Expenditure Personnel Class materials & teaching costs Travel & accommodation Direct administration costs Depreciation** Allocated costs (note 16) Total Cost of Service

3,559 548

3,858 1,006

3,495 962

2,860 588

13,772 3,104

109 188 906 4,906 10,216

173 248 1,330 4,268 10,883

430 164 1,005 4,105 10,161

57 111 1,079 4,777 9,472

769 711 4,320 18,056 40,732

Net Operating Cost per EFTS

11,907

14,588

13,010

10,862

12,506

3,473 497

4,242 1,086

3,658 1,083

2,685 789

14,058 3,455

117 144 934 4,728 9,893

279 183 1,410 4,119 11,319

303 183 1,037 4,065 10,329

128 166 1,137 4,660 9,565

827 676 4,518 17,572 41,106

11,153

13,539

14,346

11,823

12,640

2011 Budget Expenditure Personnel Class materials & teaching costs Travel & accommodation Direct administration costs Depreciation** Allocated costs (note 16) Total Cost of Service Net Operating Cost per EFTS 2010 Actual Expenditure Personnel Class materials & teaching costs Travel & accommodation Direct administration costs Depreciation** Allocated costs (note 16) Total Cost of Service

3,595 494

4,188 1,130

3,404 848

2,639 627

13,826 3,099

107 149 861 4,921 10,127

222 123 1,141 3,778 10,582

306 140 959 3,875 9,532

58 89 814 4,097 8,324

693 501 3,775 16,671 38,565

Net Operating Cost per EFTS

10,219

14,242

12,331

9,590

11,427

Depreciation** = includes allocated overhead activity depreciation and permanent diminution of assets

note 18

Related Party Disclosure Significant transactions with government-related entities The government influences the roles of the Institute as well as being a major source of revenue. For the year ended 31 December 2011 the Institute has received from the following governmentrelated entities: - Tertiary Education Commission $25.877m (2010 $28.084m) funding and grant to provide education and research services - Ministry of Education $54k (2010 $0) for accommodation services for the Wharekura - Polytechnic International New Zealand Ltd $43k (2010 $10k) for International Student Fees - University of Waikato $988k (2010 $2,203k) for facilitation of teaching in Tauranga - Waiariki Institute of Technology $330k (2010 $328k) for facilitation of teaching in Tauranga For the year ended 31 December 2011 the Institute has paid the following government-related entities: - University of Waikato $114k (2010 $221k) for teaching resources in Tauranga - Wintec $52k (2010 $26k) for facilitation of teaching in Hamilton - NZQA $241k (2010 $261k) for teaching unit fee costs - Air New Zealand $131k (2010 $71k) for domestic and international air travel - Tertiary Accord of New Zealand $78k (2010 $104k) for membership fees - NZITP $43k (2010 $43k) for membership fees - NZ Post $64k (2010 $76k) for postal services The Institute 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 2z under the heading “critical judgements in applying accounting policies”. 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 FBT. The Institute 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 2011 are small when compared to the Institute’s total expenditure and revenue and have all been conducted on an arms’ length basis. The provision of services to government-related entities mainly related to the provision of educational courses.

Key Management Personnel

Key management personnel compensation and short-term employee benefits

2011 Actual $â&#x20AC;&#x2122;000

2010 Actual $â&#x20AC;&#x2122;000

1,114

1,014

Key management personnel compensation includes 4 members of senior executive and 4 Heads of School. Councillors fees are disclosed separately in Note 19. Ancillary Services Provided to Related Parties $ 2011

Ancillary Services Provided to Related Parties $ 2010

Related Party

Relationship

Education NZ Neil Barns Consulting Ltd Waiariki Institute of Technology

Trustee Director/Shareholder Deputy Chair of Council

20,694 14,285 800

n/a n/a n/a

Paul Bowker

Devonport Towers Chamber of Commerce Ako Aotearoa

Shareholder Chairman of Board Chairman of Board

2,212 21,758 50

775 23,453 n/a

Sylvia Willison

University of Waikato

115,291

n/a

Huria Management Trust

Leadership Consultant Trustee/employee

14,000

n/a

Sport BOP Outward Bound NZ Tauranga Art Gallery

Trustee Trustee Trustee

21,500 3,557 35

n/a n/a n/a

214,181

24,229

Council Members Neil Barns

Graham Young

Executive Alan Hampton

Tertiary Accord of NZ

Board member

78,000

103,959

Paul Wollaston

Sport BOP

Trustee

21,500

n/a 103,959

99,500 There have been no guarantees provided or received for any related party receivables.

In 2011 a close family member of key management personnel was employed on a casual basis by the Institute. The terms and conditions of this arrangement were no more favourable than the Institute would have adopted if there were no relationship to key management personnel. Family members of key management personnel may be involved in transactions with the institute through taking a course of study. These services are provided on the same basis and at the same cost as for any other student.

note 19

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.

2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

133

140

108

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 2011. Finish Date

Start Date

Councillor Neil Barnes Paul Bowker Dean Ellery Brian Gould John Howard Brian Kelly Paul Logan Aroha Luttenberger Andrea Marsh Britson Mikarere Fern Nielsen Rahera Ohia Shirley Porter Lucy Steel Fleur Sweeney Ellen Taylor Paula Thompson Ian Turner Barry Ward Sylvia Willison Graeme Young

May-11

Apr-11

Apr-11 Apr-11

May-11 May-11

2011 Meeting Fees Paid $ 18,000 14,400 9,600 14,400 4,800 14,400 4,800 4,800 28,800 9,600 9,600 133,200

Attendance Attendance Council Other Meetings Meetings 8 9

12 9

10 2

2 8

1 12

4 7

2 3

2010 Meeting Fees Paid $ 12,000 10,848 1,024 1,088 512 9,600 10,624 8,450 256 1,088 9,600 768 512 10,624 256 9,600 19,200 1,600 107,650

note 20

Financial Risk Management Objectives and Policies The Bay of Plenty Polytechnic’s principal financial instruments comprise bank loans, cash and short term deposits. The main purpose of these financial instruments is to raise finance for the Bay of Plenty Polytechnic’s operations. Bay of Plenty Polytechnic has various other financial instruments such as trade debtors and trade creditors, which arise directly from its operations. Interest rate risk Bay of Plenty Polytechnic’s exposure to market risk for changes in interest relates primarily to Bay of Plenty Polytechnic’s long-term debts. Otherwise Bay of Plenty Polytechnic has no significant exposure to interest rate risk. Foreign currency risk Bay of Plenty Polytechnic’s exposure to foreign currency risk is minimal. 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 is not significant. 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 Polytechnic’s resources are largely managed as a by-product of managing revenues, expenses, assets, liabilities, investments and general financial dealings. Liquidity risk Management of 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 it 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. Carrying Contractual Amount Cash Flows $’000 $’000 2011 Trade and other payables Secured loans

2010 Trade and other payables Secured loans

< 1 Year 1 - 2 Years

2-5 Years

> 5 Years

$’000

3,503 12 3,515

3,511 57 3,568

3,511 35 3,546

22 22

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.

note 21

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.

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

Carrying Amount 2011 2010 $’000 $’000

Fair Value 2011 2010 $’000 $’000

810 5,000 8,332 4

1,434 3,000 7,735 7

810 5,000 8,315 4

1,434 3,000 7,706 7

4 40

6 67

4 40

6 67

3,503 12

3,511 57

3,503 12

3,511 57

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 ratings. Counterparties with credit ratings (Standard and Poor’s) Cash and Term Deposits AA 3,065 3,434 AA2,745 1,000 5,810 4,434 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 2011

<1 Year $’000

>1 - <2 Years $’000

>2 - <3 Years $’000

>3 - <4 Years $’000

>4 - <5 Years $’000

>5 Years $’000

Total $’000

Fixed rate assets Deposits

5,000

810

Fixed rate assets Deposits

3,000

Floating rate assets Cash & cash equivalents

1,434

Floating rate assets Cash & cash equivalents Year ended 31 December 2010

note 22

Commitments and Contingencies Bay of Plenty Polytechnic has estimated capital expenditure of $1,559,056 committed at balance date but not provided for (2010 $1,802,941). 2011 $’000

2010 $’000

742 346 44 427

327 254 4 61 382 55

Total Capital Commitments

1,559

1,083

Operating Lease Commitments as at 31 December 2011

2011 $’000

2010 $’000

Within one year Within two to five years

16 16

16 -

Total Operating Lease Commitments

Contractual Commitments as at 31 December 2011

2011 $’000

2010 $’000

Within one year Within two to five years

1,329 205

149 141

Total Operating Commitments

1,534

290

Capital Commitments as at 31 December 2011 Building & infrastructure Plant & equipment Facility improvements Motor vehicles ISS projects Computer hardware Computer software

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 Polytechnic. This land is used for carparking and may need to be restored to its original form. Contingencies as at 31 December 2010 Contingent assets There were no contingent assets as at 31 December 2010. Contingent liabilities There is a potential restoration liability upon termination of lease of $75,000 for land leased by the Polytechnic.

note 23

Lessor Commitments Bay of Plenty Polytechnic has lease agreements in place with external parties for provision of premises and services. 2011 $’000

2010 $’000

Within one year Within two to five years

175 -

Total Lease Commitments

175

2011 $’000

2010 $’000

Within one year Within two to five years Greater than five years

214 616 125

214 679 275

Total Lease Commitments

955

1,168

Finance Lease Commitments as at 31 December 2011

Operating Lease Commitments as at 31 December 2011

note 24

Childcare Centre Income and Expenditure for the year ended 31 December 2011

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

Expenses Personnel Other

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

Note 1

under 2’s over 2’s

2011 Actual $’000

2011 Budget $’000

2010 Actual $’000

988 206 244 1,438

1,030 211 237 1,478

1,092 162 209 1,463

1,120 65 1,185

1,183 90 1,273

1,077 68 1,145

253

205

318

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

2010 29,780 31,381 41,164 10,587

Comments In 2011 the annual parent survey yielded a 100% above satisfactory rating for education and care of client’s children. There were 82 surveys handed out with 32 being returned. On 1 February 2011 the government reallocated early childhood education funding resulting in a decrease in funding for our childcare centres. This was only partially recoverable by an increase in fees which is reflected by decreased income and net surplus. The government made no changes to the 20 hours subsidy scheme for eligible clients. The Childcare Centre is run as a separate trading entity within the Polytechnic. It operates under two licences (30151and 40042) to provide childcare for up to 100 children primarily for staff and students at the 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 Polytechnic.

note 25

Variations to Budget and Previous Year Significant variations may be noted as:

note 26

Government EFTS funding - decrease in 2011 due to removal of $1.31m in Regional Network Supplementary Grant previously received in 2010 and 2009.

Other Government funding - decrease in 2011 due removal of ITP Business Links funding and the reduction in Childcare funding as explained in note 24.

Student Tuition Fees Domestic - increase in 2011 due to a change in the mix of programmes. This includes new full-time programmes introduced in 2011 and short courses no longer funded by government offered at a higher self-funded student fee.

Variation to Approved Budget Due to more appropriate reclassification identified in the annual report preparation and to disclose that no offsetting of income and expenses took place, there are some variations in the presentation of the Budget figures for 2011 that was originally approved by Council. These may be summarised as: Annual Report

Statement Of Comprehensive Income Income ITOs Other Government Tuition funding Domestic student fees Other Income Expenses Employee benefit expenses Consumables

Surplus

note 27

Reclassification of Expenses There were no reclassification of expenses in 2011

Difference

2011 budget $’000

Approved by Council 2011 budget $’000

475 2,380 11,797 3,542 18,194

723 2,897 11,833 3,641 19,094

248 517 36 99 900

25,676 4,456 30,132

25,737 5,296 31,033

61 840 901

2,142

2,141

(1)

$’000

Statement of Resources For the year ended 31 December 2011

resources

Crown Properties and Buildings

Main Campus Tauranga Windermere including orchard Oropi Road Land Bongard Centre, Tauranga Edgecumbe (land leased) Total

Land Area Ha

Buildings Area m2

18.370 4.610 0.242 n/a 23.222

17,260 n/a 6,938 198 24,396

Land Area ha

Buildings Area m2 11,746 1,939

Polytechnic Owned Properties and Buildings

Windermere including orchard Windermere residential properties (18) Windermere residential properties land only (5) Total

1.57 0.485 2.055

13,685

Leased Properties and Buildings

Poike 1a & 8e carparks Durham Street carpark Maleme Street Transport & Logistics Centre Edgecumbe Agriculture Centre

Land Area Ha 3.720 0.457 0.581 n/a

Total

4.758

Buildings Area m2 n/a n/a 2,034 included as Crown property 2,034

Annual Rental $ 62,000 18,000 150,000 0

Library Resources Available resources include

Volumes Magazine titles AV resources (includes videos, cds, dvds, cdroms & audio cassettes) Posters Access to electronic databases Electronic books Electronic journals

2011 Owned Held for Other for BoPP Institution Students Students 26,109 23,849 256 54 1,797 404 237 69 62,500 21,541

In addition, Internet access was provided free of charge in both Libraries.

2010 Owned Held for Other for BoPP Institution Students Students 35,586 41,004 257 52 3,387 999 274 83 62,500 21,541

Our Management Chief Executive Dr. Alan Hampton Director, M채ori & Community Development Kuku Wawatai - Kahurangi Student Services Duncan Davies Director, Academic Dr. Terry Fulljames - Applied Science Dr. Tim Lowe - Applied Technology Malcolm Hardy - Business Studies David Lyon - Design and Humanities Gill Brocas Academic Unit Jan Hausman - Information Management Unit - Library Joanna Thomas - Taiorangahau Dr. Heather Hamerton - Pikiarero Judith Honeyfield Director, Finance Paul Wollaston - Finance - Business Development Centre Richard Van Der Jagt Operations Managers Communications and Marketing Maggie Hope - Information Centre Facilities Michael Thomson Human Resources Maree Hawkins Information Systems Services Rabindra Das

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.