twenty fifteen HITO ANNUAL REPORT
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Contents Independent Board Chair Report
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Chief Executive Officer Report
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National Quality Assurance Manager Report 15 Hair Advisory Group Report
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Beauty Update Report
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National Certificates Issued
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2015 Performance
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Financial Performance
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independent board chair report DR FLORA GILKISON 1
Independent Board Chair Report DR FLORA GILKISON Hair and beauty careers are super cool. They make your clients feel great and expand your repertoire in innovative ways. The message to young people is “do what you have a passion for - that is what drives you to be the absolute best you can be”. Sure it’s also about standing on your feet for long hours, having to take several years to master the ‘science and art’ required for this career but, in the end, the results are worth it.
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Becoming a HITO trainee means getting paid while you work, not ending up with a student loan and graduating with a portable life long career that can take you places. On-job training is a vital aspect of industry training and HITO is indebted to our business owners who take on the challenge of training and who do such a fabulous job.
– our vital schools link. The NZQA External Evaluation and Review (EER) was time consuming but resulted in good advice for the future and acknowledgment of our sound systems and processes. HITO again sent a competitor to the WorldSkills held in Brazil and while she did not place the challenge was worth her while.
The beauty industry is rapidly growing, and the Board feels strongly that this is a largely untapped market and so has become a key growth area for HITO. A registered name change to NZ Hair and Beauty Industry Training Organisation has underpinned this growth intention. The Board has also looked very seriously at the Auckland market and despite added attention and resources, it is still not making the trainee numbers expected from this growing and diverse market.
Positive highlights for the year included our participation in New Zealand Fashion Week, which gave HITO wonderful exposure and linked our name alongside a strong and international brand. GOT A TRADE was a week of great exposure for HITO, encouraging young people to explore the benefit of becoming an apprentice. It was a big hit for HITO with a lot of media and social media exposure. The Board made a decision to fund these two initiatives out of reserves, hence the reported loss on current revenues.
The year has been complex with changes to the Tertiary Education Commission rules around funding and how long a trainee can stay on the trainee schedule, trying to encourage more trainees in the metropolis of Auckland, and having a stronger face through Gateway
We are determined to grow HITO both in name recognition and trainees. In light of this, HITO commissioned an external strategic review and we plan to implement key aspects throughout the next five years.
So 2016 will be a year of challenge and achievement. The Board is looking to implement a new strategic plan with a real focus on financial sustainability and communication. To do this effectively, we need to encourage more employers to accept the training challenge and more employees to step up and sign on for a training agreement. We continue to have a triple focus on barbering, beauty and hairdressing. New Zealand has a vibrant hair and beauty industry, and is exciting and energising to be involved in it. My thanks go to all Board members for their committed enthusiasm and involvement with HITO and the industry. My thanks also go to Erica the CEO and her committed staff for all their efforts this year to help achieve some real HITO firsts.
Dr Flora Gilkison HITO CHAIRPERSON
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BOOTCAMP
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chief executive officer report ERICA CUMMING 7
Chief Executive Officer Report ERICA CUMMING
HITO has had many highlights in 2015, including new resources, new events and qualifications.
We do note however, that the number of trainees engaged in on-job training has not shown the growth being experienced by the sectors. It’s understandable that some employers may be cautious following the global crisis. However not training during that time has now created a skills gap as employers look for high quality, qualified staff. I would like to continue to encourage employers to recognise the value and benefits of training on the job to ensure that there are sufficient numbers of highly skilled people within the industry to meet business and client demands now and in the future.
Beauty Therapy Apprenticeships One of the key achievements for 2015 was within the beauty sector. After many years of consultation and work with the beauty industry, we finished 2015 with 12 beauty therapy New Zealand Apprentices. While the new beauty qualifications are in the final stages of review, HITO decided to work with industry and offer a trial apprenticeship programme for beauty therapists. This is an enormous change for the sector as never before has there been an opportunity for employers to support their staff to gain a national qualification while working on the job. HITO has worked with a small group of employers and
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their selected employees to undertake these trial apprenticeships. Resources are being developed for the employer and apprentice as they undertake new roles and tasks on the job. Qualification Reviews After a number of years the new barbering and hairdressing qualifications were registered by NZQA. The review of qualifications demanded a huge level of commitment from those directly involved in this process, so I would like to thank all who contributed. The key outcomes are the reduction in qualifications on the NZQA framework resulting in New Zealand Certificates in Barbering and Hairdressing. Those signing into apprenticeships in the future will be working toward the New Zealand Certificate in Commercial Barbering (Level 4) and the New Zealand Certificate in Hairdressing (Professional Stylist) (Level 4) qualifications. These have been highlighted in more detail in the National Quality Assurance Manager’s Report on page 15. The Beauty qualifications are also under review, and again a lot of time spent by those involved in evaluating the industry needs. The proposed suite of qualifications in beauty have been given approval to develop and will be submitted to NZQA for approval to
list in 2016. It is positive to see the development of formal qualifications in the make-up sector including prosthetics, spa and extension of specialist qualifications in beauty therapy.
EVENTS WorldSkills WorldSkills provides an opportunity for apprentices and those qualified to represent their country at this prestigious event. The international event showcases all trades training, recognising the value of young people competing for their country within their chosen trade. This year Nadine Gratton represented NZ hairdressing in Brazil. While not receiving an official place, Nadine certainly represented NZ well and has returned with a wealth of knowledge that she is ready to share with others. Boot Camp For the second time HITO ran a boot camp for the regional apprentices who won the HITO Regional Apprentice of the Year awards in 2015. The three day event further developed their skills and knowledge. This group of people are developing ambassadors for apprenticeship and future leaders within the sector. We look forward to watching their careers blossom. Graduation Also for the second time, HITO held a graduation for those who gained their national qualification through HITO. While certificates are awarded when they qualify, this ceremony is a chance to truly celebrate the achievement with friends and family. We were delighted to welcome 63 graduates and to see wha-nau and employers value their accomplishment.
Got a Trade For the first time a group of Industry Training Organisations (ITOs) came together to promote the value of trades training /apprenticeship training. Seven ITOs showcased that gaining a qualification on the job is valued and that there are many opportunities available. It is apparent that a career forged through learning while in employment has not had high profile with key influencers. The focus was on attracting school leavers to apprenticeships and to better educate their influencers (including school career advisers, parents or wha-nau) that there are options beyond university and full-time study. HITO showcased barbering, beauty and hairdressing sectors on national television. The success of this event has been widely recognised and plans are already underway for Got a Trade in 2016. NZ Fashion Week Another first for HITO was our partnership with NZ Fashion Week to sponsor the Hot New Talent competition. The primary focus of HITO was to raise public awareness of apprenticeship training. It was an opportunity for HITO to step outside of the usual media channels and be showcased with the high profile of NZ Fashion Week. Despite being only the first year of involvement, feedback demonstrated that the value of apprenticeship training in our sector needs have a greater profile. The HOT New Talent competition was a wonderful chance to profile the sector and support a group of emerging hairdressers, make-up artists, models and stylists to work behind the scenes at Fashion Week, and to be involved in a photo-shoot. Congratulations to Hannah Oxley who won the hairdressing award. She was only eight months into her apprenticeship when she won, so we look forward to seeing more from her as she progresses in her apprenticeship.
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Chief Executive Officer Report ERICA CUMMING
INDUSTRY AWARD WINNERS HITO Apprentice of the Year and HITO MidCentral Apprentice of the Year Courtney Jackson, Be Ba Bo, New Plymouth HITO Apprentice of the Year Runner-up and HITO Midland Apprentice of the Year Jenny Eastwood, Morph Hair, Hamilton HITO Northern Apprentice of the Year Jess Ganley, Oscar and Co, Auckland HITO Auckland Apprentice of the Year Kelly Manu, Blaze, Auckland HITO Central Apprentice of the Year Elana McCarrison, Lifestyle Hair Studio, Paraparaumu
Industry Awards The Industry Awards continue to showcase the best apprentices, tutors, trainers and employers in HITO training. We again partnered with NZARH and Kitomba for this event, recognising that training a workforce is a vital element in a successful business. The Jasmine McBeth Memorial Scholarship remains a prestigious award. The two other finalists in 2015 were also recognised as Jasmine’s parents offered a mini-scholarship for them too. BarberCraft In 2015 HITO worked to develop a new event for the New Zealand barbering industry, which will launch in May 2016. This coincides with the launch of the New Zealand Certificate in Commercial Barbering, a new qualification recognising that those obtaining it will have a qualification at the same level as any trades person. BarberCraft will, for the first time in New Zealand, nationally recognise the barbering industry skills and talent, introduce new competitions and technical demonstrations for barbers.
HITO Northern South Apprentice of the Year Libby Morton, True Grit Hair Spa, Christchurch HITO Southern South Apprentice of the Year Hannah Oxley, Do Hair, Invercargill HITO Trainer of the Year Cathy Davys, VIVO Hair and Beauty Tory Street, Wellington
New online resources (VUE) One of the most exciting achievements for HITO was developing a new resource called VUE. An online website and mobile application for apprentices and their employers/trainers, it was developed as a result of feedback from employers.
HITO Training Salon of the Year
The application contains 3 main elements:
True Grit Hair Spa, Christchurch
1. A video of practical skills with descriptions, quizzes and achievements.
HITO Tutor of the Year Shelley Kelsen-Macdonald, WITT, New Plymouth Jasmine McBeth Memorial Scholarship Renee Lee, Creations Hair Design, Napier
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NEW SUPPORT SYSTEMS
2. An online portfolio creator. 3. Notification system. We have made this resource available, at no cost, to apprentices and employers. Hairdressing content is available now. Barbering, nail technology and beauty therapy content will launch in 2016.
Mentoring Following research identifying the value of mentoring for those in training, HITO embarked on training a trial group of mentors to provide support to apprentices. This support is beyond their usual HITO apprenticeship support. The trial has seen positive and, as a result, we plan to continue to develop new mentors around the country so apprentices, with a need, have access.
PERFORMANCE The New Zealand Apprenticeship This continues to be a cornerstone of HITO efforts, where the apprenticeship journey is recognised as a valuable to trainees and employers. This programme has predominantly been within the hairdressing sector, but is also now available as a trial in beauty therapy. Qualification by Experience (QbyE) This year HITO has also focused on supporting people within the beauty and barbering sectors who have worked for some time but not attained their national qualification. QbyE gives them that opportunity. Critical for moving forward, both sectors will need to have a pool of qualified people to provide training and support to new trainees. Both sectors are growing, which is a time where training is vital to ensure there are enough trained staff to meet the needs of clients. Credit and Programme achievement Once again I’m proud to announce that in 2015 HITO achieved an ITO leading percentage of trainees who achieve credits and complete their programmes. 75% of our learners achieved 10 or more credits while we achieved 100% programme completion rates in 2015.
represent quality and value for all parties involved, and how HITO ensures self-evaluates our performance. The process, while time consuming, provides focused time to check that needs of the sector are being met and processes followed.
GOALS FOR 2016 Delivering a successful BarberCraft event is a key focus for us in recognising and supporting the barbering sector. We expect that the industry will have an event to showcase the sector and raise the profile of barbering as a career choice for young people. Beauty will also continue to be focus for HITO. The qualifications will be approved and we will develop programmes that will meet the needs of industry, including apprenticeship were possible. Ensuring that the beauty qualifications are listed will be essential for HITO to be sure that there are relevant and valid qualifications for the beauty sector. Our schools programme (Gateway) in beauty is already raising the profile of industry training in the beauty sector. Industry engagement will be critical as unit standards and programmes are developed. HITOs primary focus for 2016 is to improve number of learners by continuing to work with employers from all sectors, identify how training can add value to those business, and ensuring they have staff qualified to meet the needs of the business. I would like to thank the HITO Board and staff for their continued commitment and support during the year.
Erica Cumming HITO CHIEF EXECUTIVE OFFICER
Positive EER outcomes
This year the New Zealand Qualifications Authority (NZQA) undertook an External Evaluation and Review (EER) of HITO. This is a process where NZQA looks at how HITO ensures that training outcomes
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NEW ZEALAND FASHION WEEK
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national quality assurance manager report JASON HARE 15
National Quality Assurance Manager Report JASON HARE KNOW WHAT YOU ARE GETTING!
Now that the hairdressing qualifications have been reviewed and listed with NZQA, we will soon have graduates of the new qualifications working or looking for work in the salon. So what do the different qualifications mean? How do I know what skills these new graduates will have? And what’s the difference between these new qualifications and the qualification I have?
Here is a breakdown of what you can expect: New Zealand Certificate in Salon Skills Level 2
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some of the unit standards from this qualification through Gateway and Star programmes.
The graduate of this qualification will have a basic understanding of how a salon operates and how to communicate and present themselves for work. They may have some limited styling skills but this is mostly to ensure they can do their own hair and present a professional image for the salon. You might find this graduate has some knowledge of beauty therapy and barbering also, as this qualification can include knowledge of beauty and barbering.
New Zealand Certificate in Hairdressing (Salon Support) Level 3
If this graduate is working in your salon you can expect them to be able to greet and look after clients’ needs but you will need to train them in all hairdressing skills. Secondary students may complete
If this graduate is working in your salon you can expect that they will be able to support you by shampooing, applying and removing colours, looking after clients and reception during services.
This graduate will have completed a one year full time hairdressing course. They will have some hairdressing skills to be able to support you with your clients such as applying and rinsing off colours, applying a few foils and looking after reception stock and displays. They would also be able to do some basic services in the salon such as simple blow dry’s and hair ups.
They should also be able to help you with drying off clients and doing simple hair up work for school formals etc. They would generally be called a salon assistant.
If this graduate is working in your salon you can expect them to be working as a senior, operating a full column. They will be able to promote additional services to clients and meet the commercial expectations of you and the clients.
New Zealand Certificate in Hairdressing (Emerging Stylist) Level 4 A graduate at this level has completed 2 years full time training. They will be able to do most services with general guidance, they have learnt skills in all areas of hairdressing but may need assistance with more complex chemical work such as straightening and full head bleaching. While the graduate will have a large range of skills they may need time to come up to commercial speed and expectations. They will know the 4 basic haircuts but may need help bringing these together into fashion cuts. If this graduate is working in your salon you can expect them to start to run a column but allow them a little more time and support for services. They will consult and manage their own clients but come to you for guidance when working with the more difficult chemical services. They would generally be called an intermediate stylist. New Zealand Certificate in Hairdressing (Professional Stylist) Level 4 This is the fully qualified senior operator. They will understand and be able to perform all services in a commercial timeframe. They will also have proven they can service a sufficient throughput of clients to be commercially viable. The graduate will have good knowledge of services, how pricing impacts on salon profitability and how to manage and grow their clientele. They have the ability to create fashion work and promote current products and services. When you sign up an apprentices this is the qualification they will be working towards.
So if you are looking for a QUALIFIED SENIOR STYLIST these certificates are what you will look for: • New Zealand Certificate in Hairdressing (Professional Stylist) • National Certificate in Hairdressing (Professional Stylist) • National Certificate in Hairdressing (Practice) Hairdressing strand • Trade Certificate in Ladies Hairdressing Unit standards are industry standards Unit standards are the currency we have used to identify the skills and knowledge a hairdressing trainee has gained. These often don’t reflect what’s happening now in the industry. Questions like ‘why don’t we update the content?’, and ‘why do we still do perming/ fingerwaves/ cap highlights?’ come up often. I thought I would take the opportunity to explain a little about how these unit standards come about and how they work. The units are created and maintained by the Hair Advisory Group. This group includes salon owners, senior stylists, hairdressing trainees, and tutors from both polytechnic and private providers and a representative from the NZARH along with HITO. This group meets at least 4 times a year to review content, look at new skills and see where changes are needed. Unit standards are building blocks of skills. These building blocks ensure the learners have a wide range of skills and knowledge. Once they have completed these building blocks and have these
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National Quality Assurance Manager Report JASON HARE
skills in their hairdressing kit, they have a good basis to grow and build into performing the high fashion work expected in the salon. DON’T BE FOOLED! If someone tells you they have the ‘cutting unit’ this doesn’t mean that you can let them loose of all your clients doing all sorts of fashion cuts. The scissor cutting unit includes the four basic cuts and a clipper cut but doesn’t combine these together to create the work you would expect on your salon floor. This comes later. So why do we still have units in perming/ finger waving/ cap highlights. There are a few reasons these are still included and this is often hotly debated by the Advisory Group. The main reason is that while these services are not common in the salon now, the skills the learners gain doing these things are important. For example, finger waving not only teaches a skill that shows up in competitions and catwalks but also it teaches movement and wave formation skills. It also strengthens and assists with the dexterity of the fingers for skills like braiding. We check the content of the unit standards with those of other countries through the International Professional Standards Network (IPSN) to ensure we are not missing important changes. This has seen the inclusion of units on sustainability and accounting. We also get feedback from salons that becomes incorporated in the units and things like understanding different ways of permanently straightening the hair and following directions from senior staff have been added. So how do you have your say?
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If you think there are skills missing from our ‘building blocks of skills’, email Karen in the National Office (ama@hito.org.nz) and she will forward your thoughts to the representatives for you. The unit standards are designed by industry and built to ensure the industry continues to have a board range of skills in a qualified operator. They really are the New Zealand Industry Standards. Units are your guarantee that when a learner has achieved these, you know they have done this skill a number of times to the standard, on a range of real people. It’s your guarantee that they can consult sufficiently and have not been working on mannequins. You can guarantee what skills have been assessed by checking the NZQA record of achievement. There has been some talk regarding having or not having unit standards within qualification. Apprentices working towards the New Zealand Certificate in Hairdressing (Professional Stylist) will continue to gain unit standards as their measure of skills and knowledge as they have done in the past. These will be registered on the NZQA directory of assessment standards. Unit standards are not the only way to assess hairdressing skills. Be sure you know what you are getting!!
Jason Hare HITO NATIONAL QUALITY ASSURANCE MANAGER
INDUSTRY AWARDS 19
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GRADUATION
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hair advisory group report DEB CLARK 23
Hair Advisory Group Report DEB CLARK 2015 has been an interesting year for the Hair Advisory Group. My role as chair commenced following the resignation of Andrea Bullock. Andrea led the group for many years, doing an outstanding job of keeping everyone on track and moving forward and I would like to thank her for all her hard work.
The Hair Advisory group has representation from Independent Training Providers, Private Training Providers, salon owners, apprentices, the HITO Board and Quality Assurance.
Interpretation guidelines for the new units included in the qualifications and new versions of existing standards have also been developed and made available to providers.
The Group seemed to be consumed by the Targeted Review of Qualifications over the last few years, and it is with a sigh of relief to all that this is now over and we can go back to business as usual. We have needed to formally meet just once this year.
Common assessment tasks for the Level 2 New Zealand Certificate in Hairdressing (Salon Skills) have also been developed and made available for providers to use.
The meeting focused mostly on tidying up the wording in the Consent and Moderation Requirements document that would meet the needs of NZQA and the results of the TRoQ. This was attended by industry representatives and NZQA as well as the Hair Advisory Group. In March NZQA approved the suite of qualifications that resulted from the barbering and hairdressing reviews and listed these on their website. Many providers have now gained their programme approvals to deliver these.
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I would like to thank the members of the Hair Advisory Group for all their input over the last few years. Such a lot of time and effort goes on behind the scenes, gathering feedback to ensure the voices of all parts of the sector are heard, researching information, reviewing, developing and moderating standards, answering queries and attending meetings. Much of this happens in their own time, squeezed into what are already busy days. Their dedication to the industry is without question and we are lucky to have such a proactive group to work with.
Deb Clark CHAIRPERSON, HAIR ADVISORY GROUP
GOT A TRADE WEEK 25
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beauty update report TARGETED REVIEW OF QUALIFICATIONS (TROQ) 27
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BEAUTY
Beauty Update TARGETED REVIEW OF QUALIFICATIONS (TROQ)
In 2015 the review of beauty qualifications continued and the initial suite of qualifications were submitted to NZQA:
HITO Beauty Advisory Group
• New Zealand Certificate in Makeup and Skin Care (Introduction) (Level 3)
The HITO Beauty Advisory Group began a review of current and development of new unit standards to reflect industry needs. The advisory group members included:
• New Zealand Certificate in Beauty Therapy (Level 4)
• Annabelle Taylor – PTE Representative
• New Zealand Certificate in Makeup Artistry (Level 4)
• Diane Codd – Polytechnic Representative
• New Zealand Certificate in Nail Technology (Level 4)
• Lorna Mercer – Distributor Representative
• New Zealand Certificate in Prosthetics and Performance Makeup (Level 5)
• Judy West – Beauty Therapy Association
• New Zealand Certificate in Spa Therapy (Level 5)
• Marianna Glucina – Industry Representative
• New Zealand Diploma in Beauty Therapy (Level 5) • New Zealand Certificate in Specialised Epilation Therapy (Level 6) • New Zealand Certificate in Specialised Skin Care Therapy (Level 6) Two of these qualifications were not approved: • New Zealand Certificate in Prosthetics and Performance Makeup (Level 5) • New Zealand Certificate in Specialised Skin Care Therapy (Level 6). The governance group requested further consultation and asked the relevant working groups consulted with industry. From the initial report and consultation, the governance group resubmitted the qualifications to NZQA for approval to develop. Pending the outcome and with ongoing consultation, the goal is to have the developed qualification suite submitted to NZQA in February 2016.
• Jaye Clark– HITO Board Representative
During the process, subject-matter specialists evaluated the requirements for various skill areas. E.g. Leah Light and Maxim Titter for Nail Technology. The advisory group also consulted with the national counter manager from Farmers, among others, when reviewing the Level 3 Makeup unit standards. These units were reviewed and submitted to NZQA. At the end of 2015, the advisory group began reviewing the unit standards for the NZ Certificate in Beauty Therapy, inviting industry experts to ensure that the units reflected current industry standards. This will continue into 2016 across the remainder of the proposed qualifications and is a significant undertaking for the advisory group, requiring regular meetings, conferences and consultation. HITO is aware that training providers, who undertake assessment of the new unit standards, may require extra support to help interpret them. The HITO moderation team continue to support these assessors through the moderation process.
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BARBERING
SEE YOUR WORK IN PRINT
DHARMA
Josh Angell
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National Certificates Issued
WHERE CONSENT HAS BEEN GIVEN TO PUBLISH NAMES
HAIRDRESSING (L4) Professional Stylist & Hairdressing Practice
Chloe Emms
Giordyn Garrick
Jessica Vedder
Krista-Lee Haslam
Chloe Law
Gynelle Rogers
Jessie Guthrie-Biggs
Kristy Rogers
Abigail Harvey
Claire McFarlane
Hallie Freeman
Jodie Waite
Krystal Trowbridge
Alesha Phipps
Coral-Mae Jacobsen
Hannah Kelly
John Walker
Kylee Brown
Alexandra Hawij
Courtney Jackson
Hannah Wallace
Judith Punshon
Kylie Arthur
Alison Barnaby
Dang Le
Hannah Williams
Julia Connell
Kylie Booth
Alysha-Leigh Nolan
Danielle Sickels
Harley Inia-Paora
Justine Linton
Kylie McGregor
Amber Goble
Demelza Law
Hilary Davis
Justine Van Zyl
Lauren Hendry
Denby Edwards
Hine-Huia Te Awhe
Kaitlin Hoare
Leanne Hannay
Dianna Aitken
Hollie Cranston
Kane Morris
Leone Oldfield
Kanwarbir Singh
Levi Wall
Kara Kentell
Liam Northcott
Kara Miller
Liane Pedersen
Kate Burt
Liarnee Allan
Amber McKenzie Amber Petrie-Taylor Amelia Jordan Amelia London Amy George Amy Robinson
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Elisha Pennington Elizabeth Painter Eloise Blakelock Elyse Bowyer
Angela Thomson
Emilee Blunden
Ashleigh Barclay
Holly Ransley Holly Riordan Hope Howchow Jade Freestone Jaene Louw
Katie Grigg
Lisa Gill
Emily Gudopp
Jamie-Leigh Campbell-Powell
Katie Robinson
Lisa Noble
Ashleigh Cole
Emma Hazelwood
Janaya Te Tomo
Katrina Dodge
Lisa Simpson
Ashley Bacon
Ewelina Popielarska
Jazz Woonton
Kayla Austin
Lucia Hutton
Bonnie Underwood
Fiona Crowley
Jean Adams
Kayla Fisher
Madison Plaskett
Bree Lacy
Frana Evans
Jennifer Bannan
Kayla Pope
Marche Khan
Caitlin Parrant
Gabrial Dickinson
Jenny Eastwood
Kayley Thomsen
Marque Morehu
Carew Paki
Gabrielle Hislop
Jessica De Jonge
Kelly Clark
Megan Roberts
Casey Donald
Gemma Fogarty
Jessica Purcell
Kendall Thompson
Megan White
Chiara Whitmore
Genevieve Lawson
Jessica Thomson
Kevin Price
Melinda Holmes
Melissa Joyce
Samantha Cowie
Sydney Hyde
Craig Drummond
BUSINESS (L3)
Melissa Naylor
Samantha Ferris
Tania Hayes
Dempsey Alipia
Amanda White
Melissa Teller
Samantha Hopkins
Taryn Nicholls
Jacqueline Gallichan
Cara Healy
Mitchell Wilson
Samantha Norris
Jodie Boland
Molika Mao
Samantha Tree
Tayla RowlandBrunton
Natalie Henderson
Samantha Virtue
Natasha Boot
Samantha Wilden
Natasha McLean
Sara Galloway
Ngareta Copeland
Sarah Lewis
Olivia Davies
Sarah Ransfield
Olivia Hynes
Sarah Smith
Olivia Lewis
Sasha Zamani
Olivia Wilson
Sharnah Herlihy
Paige Churchill
Sherrie-Lee Moleta
Paul Fitch
Siope Tuungafasi
Poppy Hayward
Skye Hedley
HAIRDRESSING (L5) Advanced Cutting
Rachel Forscutt
Sophie Baty
Aimee Stuart
Michelle Sanders
Charlotte Dawn Colthurst
Rebecca Brewin
Soraja Meade
Dylan Quinn
Sara Jackson
Teresa Colthurst
Rebecca Sime
Stacey Martin
Jacqui Malcolm
Sara Pigott
Rebekah Hayden
Stefanie Hack
Renee Lee
Stephanie Hunt
Rowena Sanders
Stephanie Jackson
Roxanne Abrahams Roxanne Threadgold
Terrele Fleming Tessa Hill Trent Fleet Uella Watson Valerie Adams Vianca Henning
Julian Maloney Kerry-Ann Glover Lisa Salter Michelle MacFarlane Samuel Monaghan Sharon Small
Wha-nau Paniora
Renee Spicer
MANAGEMENT (L5) Assessment of Hairdressing Charlotte Dawn Colthurst
BEAUTY SERVICES (L3) Nail Technology
Teresa Colthurst
Amanda Bryant D’Arna Lauder Emily Gudopp
Teena Cooke BARBERING (L3)
Paula McFlynn
Sue Phelan
Victoria Carling Viliame Koroi
Mikayla Narbey
Vanessa Adlam
Anna Browne
MANAGEMENT (L5) Salon Management
MANAGEMENT (L5) Tutoring in Hairdressing
Stevie Cox
Christina Makhmetova
BEAUTY SERVICES (L3) Cosmetology
Charlotte Dawn Colthurst
Stevie Lewis
Christopher Terry
Pepito Silverio
Teresa Colthurst
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Katrina Chunn OTTO
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SEE YOUR WORK IN PRINT
2o15 performance 35
2015 Performance CONTINUING TRAINING PROGRAMMES as at December 2015
Hairdressing
94%
Male
6%
GENDER COMPARISON
36
IT
MA
NF
Total
642
55
179
32
908
Advanced Cutting
2
1
3
Salon Management
1
1
2
3
36
Barbering
30
Beautician
3
3
6
Nail Technology
15
10
25
Cosmetology
2
Business
17
Beauty Therapy
Female
NZA
TOTAL
11
3
2 3
20 11 1013
IT: TEC part-funded Industry Trainee or Apprentice MA: TEC part-funded Modern Apprentice NZA: TEC part-funded New Zealand Apprentice NF: TEC non-funded training
QUALIFIATION COMPLETED
LEARNER ETHNICITY
Hairdressing (Professional Stylist)
213
Barbering
26 European 76.7%
Beauty Services (Nail Technology)
8
Maori
15.0%
(Hairdressing Practice) 3
Other
7.5%
Hairdressing
Pacific Islander
0.8%
Hairdressing
(Advanced Cutting)
3
Business
3
Beauty Services (Cosmetology)
FINAL ASSESSMENTS COMPLETED
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LEARNER AGE RANGE
15-19 years 334 20-24 years 400 Unit Standard 2759 249 Unit Standard 10650 25 Unit Standard 2757 217
25-29 years 141 30-34 years 50 35-39 years 32 40-44 years 17 45-49 years 22 50-54 years 10 55+ years
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GATEWAY PARTICIPATION NUMBERS
81
Schools
142
Students
GATEWAY SCHOOL PARTICIPATION NUMBERS
102
65
21 2 Year 1 Hairdressing
38
GATEWAY STUDENT NUMBERS
Year 2 Hairdressing
Beauty
34
3 Barbering
3
2 Year 1 Hairdressing
Year 2 Hairdressing
Beauty
Barbering
financials statements FOR THE 12 MONTHS ENDING 31 DECEMBER 2015 39
Financial Statements FOR THE 12 MONTHS ENDED 31 DECEMBER 2015
Contents
40
Auditors’ Report
41
Statement of Financial Performance
42
Statements of Movements in Equity
45
Statement of Financial Position
46
Notes to the Financial Statements
47
Independent Auditor’s Report To the Members of New Zealand Hair and Beauty Industry Training Organisation Incorporated
BDO WELLINGTON
Report on the Financial Statements New Zealand Hair and Beauty Industry Training Organisation Incorporated on pages 42 to 51, which comprise the statement of financial position as at 31 December 2015 and the statement of movements in equity, and statement of financial performance for the year then ended, and a summary of significant accounting policies and other explanatory information. This report is made solely to the Members as a body, in accordance with the Constitution of New Zealand Hair and Beauty Industry Training Organisation Incorporated. Our audit has been undertaken so that we might state to the Members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Members, as a body, for our audit work, for this report, or for the opinions we have formed. Board’s Responsibility for the Financial Statements The Board are responsible for the preparation and fair presentation of these financial statements in accordance with generally accepted accounting practice in New Zealand and for such internal control as the Board determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Other than in our capacity as auditor we have no relationship with, or interests in, New Zealand Hair and Beauty Industry Training Organisation Incorporated. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of New Zealand Hair and Beauty Industry Training Organisation Incorporated as at 31 December 2015 and its financial performance for the year then ended in accordance with generally accepted accounting practice in New Zealand.
BDO WELLINGTON 13 April 2016 Wellington, New Zealand
41
Statement of Financial Performance FOR THE TWELVE MONTH PERIOD ENDED 31 DECEMBER 2015 REVENUE
NOTE
2015
2014
Regional Apprentice Fees
116,343
135,876
HITO Annual Employer Fees
254,211
266,389
NZARH – Association Levy
35,337
39,956
Membership Fees
3,844
3,270
Nail Qualification
6,890
11,861
Appeal on Assessment Barbering Fees Assessment Fees
765
696
15,815
2,622
100,928
145,452
Workshops – Assessor Training
3,210
3,912
Employer/Apprentice Workshops
3,280
717
National Certificate Income
4,800
7,321
Industry Development Recovery
50,920
87,139
29,911
38,147
Moderation Recovery
142,382
175,506
Project Funding
30,000
30,000
2,692,884
2,809,747
3,491,520
3,758,611
Credit Fees
Tertiary Education Commission Funding
(2)
PUBLICATION SALES Publication Sales
33,045
42,494
Less Cost of Sales
-29,329
-34,520
3,716
7,974
Gateway Income
21,630
34,863
Less Gateway Expenses
-4,289
-9,278
17,341
25,585
Interest – National & Regional Offices
417,175
422,771
Management, Business & Advanced Qualifications
18,629
20,321
GATEWAY INCOME
OTHER INCOME
Sundry Income TOTAL REVENUE
42
These Statements are to be read in conjunction with the notes on pages 47 to 51.
3,582
1,522
439,386
444,614
3,951,963
4,236,784
Statement of Financial Performance FOR THE TWELVE MONTH PERIOD ENDED 31 DECEMBER 2015 EXPENDITURE
NOTE
Seminar Expenses
2015
2014
19,284
20,836
Advertising/Marketing
447,530
390,960
Surveys/Reviews/Projects
170,442
44,182
Membership Expenses Nail Qualification Expenses Assessment Expenses 2759/2757 Barbering Fees Off Job Training Paid
(11)
Board & Travel Subsidy
368
574
3,768
10,609
83,739
98,407
4,568
1,366
767,774
875,567
28,700
29,109
National Certificate Costs
2,170
3,435
Accreditation/Credit Fees
32,883
41,051
Moderation Expenses
45,873
38,891
Literacy Project
41,776
18,327
238,500
186,874
Industry Development Programme/Beauty Development
7,521
36,000
Qualification Adv Committee
9,273
8,375
Workshops
17,654
7,103
Movement in Provision for Bad Debts
9,310
7,809
Bad Debts Written Off
2,460
1,623
Management, Business & Advanced Qualifications
19,772
27,627
HITO Apprentice & Employer Incentive
These Statements are to be read in conjunction with the notes on pages 47 to 51.
0
7,000
1,953,365
1,855,725
43
Statement of Financial Performance FOR THE TWELVE MONTH PERIOD ENDED 31 DECEMBER 2015 GENERAL OVERHEADS
NOTE
2014
ACC Earner/Employer Premiums
6,405
5,538
Accommodation
16,822
16,859
Accounting & Legal Expenses
8,918
20,231
Advertising White Pages
4,705
4,770
13,886
19,280
Audit Fees Amortisation and Depreciation General Expenses
(5) & (6)
88,944
81,575
(4)
332,069
268,632
Insurance
14,554
14,534
Board Meetings & Honoraria
60,165
54,604
Printing & Stationery Office Rent Lease Expenses
16,997
16,299
117,990
113,649
12,715
12,549
Salaries & Wages
1,491,035
1,438,931
Staff Recruitment
14,392
13,689
Staff Training
6,703
3,311
Targeted Review Of Qualification (TROQ) Expenses
37,769
27,809
Telephone & Internet
51,748
55,420
Vehicle Leases
68,956
62,496
Vehicle Running Expenses
55,599
38,451
2,420,372
2,268,627
4,373,737
4,124,352
-421,774
112,432
0
0
-421,774
112,432
TOTAL EXPENDITURE OPERATING SURPLUS BEFORE TAX Provision for Taxation NET OPERATING SURPLUS AFTER TAX
44
2015
These Statements are to be read in conjunction with the notes on pages 47 to 51.
Statement of Movements in Equity FOR THE TWELVE MONTH PERIOD ENDED 31 DECEMBER 2015 NOTE EQUITY AT START OF PERIOD NET OPERATING SURPLUS AFTER TAX EQUITY AT END OF PERIOD
These Statements are to be read in conjunction with the notes on pages 47 to 51.
2015
2014
9,509,608
9,397,176
-421,774
112,432
9,087,834
9,509,608
45
Statement of Financial Position AS AT 31 DECEMBER 2015 EQUITY
NOTE
EQUITY
2015
2014
9,087,834
9,509,608
244,268
250,987
CURRENT ASSETS Accounts Receivable & Accrued Income Stock on Hand
23,341
22,971
Prepayments
55,392
34,273
GST Refund
163,461
0
Bank Accounts – Current
35,557
65,026
Bank Accounts – Call Deposits Term Deposits
(7)
40,274
786,459
8,695,659
9,590,398
9,257,951
10,750,114 164,521
NON CURRENT ASSETS Fixed Assets
(5)
127,183
Intangible Assets
(6)
398,760
47,634
525,943
212,155
9,783,894
10,962,269
TOTAL ASSETS CURRENT LIABILITIES Apprentice Fee received in Advance Accounts Payable and Accruals GST Payable TEC Liability
(2)
TOTAL LIABILITIES NET ASSETS For and on behalf of the Executive Board Flora Gilkison, Chairperson 13 April 2016 46
Erica Cumming, Chief Executive Officer 13 April 2016
These Statements are to be read in conjunction with the notes on pages 47 to 51.
58,841
80,138
555,961
445,081
0
15,989
81,259
911,453
696,061
1,452,661
696,061
1,452,661
9,087,834
9,509,608
Notes to the Financial Statements FOR THE 12 MONTHS ENDED 31 DECEMBER 2015
1. STATEMENT OF ACCOUNTING POLICIES These statements have been prepared in accordance with the Incorporated Societies Act 1908 and the Financial Reporting Act 1993. A. GENERAL ACCOUNTING POLICIES The measurement base adopted is that of historic cost. Differential Reporting The NZ Hair and Beauty Industry Training Organisation Inc (“HITO”) is a qualifying entity within the New Zealand Institute of Chartered Accountants Differential Reporting Framework. The Organisation is not publicly accountable and qualifies under the size criteria. The Organisation has taken advantage of all differential reporting concessions available to it except for GST, the statements are presented exclusive of GST. The financial statements have been prepared in accordance with Generally Accepted Accounting Principles in New Zealand (NZ GAAP) applying the old NZ Financial Reporting Standards. B. PARTICULAR ACCOUNTING POLICIES Accounts Receivable Accounts receivable are valued at expected realisable value. HITO has a policy of provisioning for bad debt. All debts over 90 days that do not have a repayment plan are lodged with a debt collector. All debtors that have been lodged, or are about to be lodged have a provision of 50%. Stock Stocks are valued at the lower cost on a FIFO basis or net realisable after due allowance for damaged or obsolete stock. Fixed Assets Fixed Assets are recorded at cost less depreciation to date. All fixed assets are depreciated over their expected useful lives using the straight line method of depreciation, using the maximum rates allowed by the Inland Revenue Department. The Depreciation Rates used are as follow: Furniture & Fixtures
8 – 30%
Hardware-Computer
30 – 48%
Office Equipment
10.2 – 48%
Leasehold
7.8%
These notes are to be read in conjunction with the statements on pages 42 to 46.
47
Intangible Assets Intangible assets are measured at cost less accumulated amortisation. Amortisation is recognised in the profit and loss on a straight line basis. The amortisation rate used is as follows: Training Resources
15 – 20%
Software-Computer
48%
Goods and Service Tax The Financial Statements are stated exclusive of Goods and Service tax except for Accounts Receivable and Accounts Payable which have been stated inclusive of Goods and Services tax. These notes are to be read in conjunction with the statements on pages 42 to 46. Government Grants All grant monies have been recognised as income when earned and any unearned amounts have been recognised as income in advance. C. CHANGES IN ACCOUNTING POLICIES There has been no change in accounting policy for the HITO. A new accounting Standards Framework (incorporating a tier strategy) developed by the External reporting Board (XRB) will be effective for reporting period ending 31 December 2016. HITO will be able to report under Tier 2 of the Framework.
2. TERTIARY EDUCATION COMMISSION
Funding Received Overpaid Funding to be returned (Included as Balance Sheet Liability)
2015
2014
2,774,143
3,721,200
(81,259)
(911,453)
2,692,884
2,809,747
The TEC funding recovery has been accrued in line with the information available from TEC.
3. TAXATION HITO registered as a Charitable Trust in June 2008, Taxation Provision was only provided up to this period. There is no tax provision for the 2015 year.
48
These notes are to be read in conjunction with the statements on pages 42 to 46.
4. GENERAL EXPENSES 2015
2014
Bank Charges
2,415
2,216
Cleaning
3,024
2,992
119,255
82,918
Computer Maintenance Electricity Freight, Courier & Postage General Expenses
7,228
7,692
33,188
35,829
7,134
4,525
General Meeting Costs
64,160
44,967
ITO Federation Subscription
25,625
25,625
National Office Expenses
20,163
18,362
Repairs and Maintenance
0
926
49,877
42,580
332,069
268,632
Travel Expenses
These notes are to be read in conjunction with the statements on pages 42 to 46.
5. FIXED ASSETS 2015 COST
ACCUMULATED DEPRECIATION
Furniture & Fixtures
108,112
Hardware – Computer
186,221 103,959
Leasehold Improvements Office Equipment
DEPRECIATION
BOOK VALUE
75,674
12,502
32,438
167,101
28,776
19,120
39,988
8,109
63,971
56,012
44,358
6,166
11,654
454,304
327,121
55,553
127,183
These notes are to be read in conjunction with the statements on pages 42 to 46.
49
2014 COST
ACCUMULATED DEPRECIATION
DEPRECIATION
BOOK VALUE
Furniture & Fixtures
108,112
63,170
13,113
44,942
Hardware – Computer
169,315
138,326
27,232
30,989
103,959
31,879
8,109
72,080
54,702
38,192
9,954
16,510
436,088
271,567
58,408
164,521
BOOK VALUE
Leasehold Improvements Office Equipment
6. INTANGIBLE ASSETS 2015 COST
ACCUMULATED AMORTISATION
AMORTISATION
Software – Computer
334,397
316,151
29,388
18,246
Training Resources
384,517
4,003
4,003
380,514
718,914
320,154
33,391
398,760
AMORTISATION
BOOK VALUE
2014 COST Software – Computer
ACCUMULATED AMORTISATION
334,397
286,763
23,167
47,634
334,397
286,763
23,167
47,634
These notes are to be read in conjunction with the statements on pages 42 to 46.
7. TERM DEPOSITS
50
2015
2014
Westpac Term Deposit 01
2,367,779
2,294,082
Westpac Term Deposit 06
2,253,289
2,157,452
Westpac Term Deposit 08
2,260,759
2,636,828
ASB Term Deposit 0074
1,003,532
1,247,426
ASB Term Deposit 0073
810,300
1,254,610
8,695,659
9,590,398
These notes are to be read in conjunction with the statements on pages 42 to 46.
8. OPERATING LEASE COMMITMENTS The operating lease commitments as at 31 December 2015 are: 2015
2014
Current
148,942
196,557
Non Current
98,600
244,695
247,542
441,252
9. OTHER COMMITMENTS As at balance date, HITO had no other committed payments (2014: NIL).
10. CONTINGENT LIABILITY Except as noted in Note 2 there are no contingent liabilities for HITO at this time (2014: NIL).
11. OFF JOB TRAINING 2015
2014
HITO Payments
767,774
875,567
Apprentice Contributions
371,349
435,802
1,139,123
1,311,369
HITO Payments are course fees paid on behalf of apprentices to providers. Apprentice Contributions are course fees and related costs that are paid directly to the providers.
12. SUBSEQUENT EVENTS No events subsequent to balance date have materially impacted the accuracy of these financial statements.
13. RELATED PARTIES A Millar (Board member) is also an Industry Assessor and M Gibbons (Board member) is contracted to deliver Employer Seminars through Shock Consulting Limited.
These notes are to be read in conjunction with the statements on pages 42 to 46.
51
HITO NATIONAL OFFICE Level 1, 95 Thorndon Quay Wellington 6011 PO Box 11 764, Manners Street Wellington 6142 T: (04) 499 1180 | F: (04) 499 3950
www.hito.org.nz