2015 Annual Report by Southern Institute of Technology

2015 ANNUAL

GOVERNANCE AND MANAGEMENT

REPORT

Southern Institute of Technology

Annual Report 2015 |

INDEX 03

Mission and Goals

2015 Highlights

Governance and Management

Chairperson’s Report

Chief Executive’s Report

Statement of Responsibility

SIT Council and Management Team

Student Achievement

Student Support

Māori and Pasifika Focus

International Students and Partners

Community, Industry, Business

Staff Highlights

Statement of Service Performance

Independent Auditor’s Report

Statement of Accounting Policies

Financial Statements

Glossary of Acronyms

Private Bag 90114 133 Tay Street Invercargill Phone

(03) 211 2699

Fax

(03) 214 4977

Freepost 62685 Free Phone 0800 4 0 FEES (0800 4 0 3337) Website www.sit.ac.nz

Goals and Continuing Objectives

Provide for and encourage student participation and achievement in a range of quality learning opportunities and services

Foster our social and professional obligations to both stakeholders and staff

Operate a viable educationally directed business entity

ªª Enhance academic achievement and satisfaction of stakeholders

ªª Enhance and promote an understanding of Te Tiriti o Waitangi and its application to the Institution

ªª Offer a range of programmes, stair-casing opportunities, and flexible delivery modes which provide occupational and life skills ªª Improve the representation and achievement of underrepresented and disadvantaged groups

ªª Foster and enhance relationships with all external stakeholders

ªª Create and maintain policies which are consistent with the Human Rights Act

ªª Manage the organisation effectively and efficiently ªª Demonstrate commitment to the employment and development of quality staff ªª Enhance revenue income from other than Government funded activities

ªª Provide a physically desirable and safe learning and working environment

ªª Provide a range of student and staff support services

Mission Statement

Statement of Purpose

Southern Institute of Technology provides quality vocational education which equips people with the knowledge and skills to be effective industry participants.

Southern Institute of Technology will provide students with quality education and training services.

E whakarato ana Te Whare Wänanga o Murihiku i ngä ratonga huarahi kia whakarawe i te tangata kit e mohiotanga me ka pükenga kia mahi tika ai a ia kei roto nei I tōna ahumahi

Ka whangaitia e Te Whare Wänanga o Murihiku ngä tauira ki ngä mätauranga me ngä akoranga tino teitei

The Mission Statement, in turn, defines the Institute’s Statement of Purpose, which acknowledges its primary commitment to its student base. By providing well-trained and competent graduates, the Institute also supports the industries and professions that provide ongoing and future employment.

SIT fulfils this purpose when it provides learning opportunities for its students that are industry focussed, challenging, personally enriching, valued by participants, and which equip them to apply high level skills in a variety of business, industry and professional settings.

Annual Report 2015 |

2015 Highlights

13,090

ªª Invercargill ªª Christchurch ªª Queenstown ªª Gore

students

ªª Auckland

183+ Campuses

Programmes

OF SIT GRADUATES Reported they were IN EMPLOYMENT OR STUDYING

Provisional Results - February 2016

course completion

retention

SATISFACTION

Student Satisfaction Survey 2015

$7,456,000

69% 68% qualification completion

OVERALL STUDENT

Graduate Outcome Survey 2014

78%

EFTS

other income

33% progression to higher level study from levels 1-4

$99,222,000 total net assets

$801,000

domestic student fees

$8,932,000

international student fees

$32,026,000 government funding

$46,807,000 total expenses

$49,251,000 total income

| Annual Report 2015

$2,444,000 surplus

STUDENT GENDER*

39% Male

STUDENT AGE*

61% Female

37%

63%

Under 25 years

25+ years

STUDENT ETHNICITY*

Note: Total exceeds 100% as some students identify with more than one ethnicity

16% 3% 6% Maori Pacific Asian Islander

79% European

4% Others Annual Report 2015 |

*Government Funded EFTS

GOVERNANCE AND MANAGEMENT

Governance and Management

Chairperson’s Report I’m delighted to report on another stellar year for the Southern Institute of Technology (SIT) with great progress having been made on many fronts. Our student numbers continue to be maximised and the excellent financial performance of SIT continues to ensure the sustainability of the very successful Zero Fees initiative. Our Educational Performance Indicators (EPIs) also outline a strong result for 2015. The existence of a strong independent tertiary provider is important to Southland. SIT has a responsibility to provide appropriately trained graduates to the Southland community and its associated industries. We continue to produce jobseekers with leading-edge qualifications, skills and experience to enhance local industry, and those further afield. This continues to support and enhance the region’s economy.

Particular mention was made of Penny’s implementation of the enormously successful Zero Fees scheme, and the way it reversed Southland’s population decline and boosted the regional economy. Penny also instituted the marketing scheme which led to an increase in the numbers of International students at SIT from 29 in 2000 to well over 1,200 in 2015. The students, Chief Executive, management team, staff and the members of the SIT Council have all combined to make 2015 another very successful year for SIT.

The number of international students attending SIT continues to increase, and this is providing lasting benefits to the Southland community, economically and culturally. SIT has received accreditation and approval for both our Master of Applied Management and Master of Information Technology programmes. These programmes begin in 2016. This is another exciting step forward for SIT. I’m thrilled to acknowledge the achievement of Penny Simmonds, who was made a Companion of New Zealand order of Merit in the 2015 New Years’ honours. The award was for services to education, sport and the community. This award acknowledges the enormous role Penny has played in the growth and on-going success of SIT and her contribution to the Southland region.

| Annual Report 2015

Sarah Brown Chairperson of Council

GOVERNANCE AND MANAGEMENT

Chief Executive’s Report

Introductory Statement In 2015 the Southland community spent time assessing the current state of Southland and the direction for going forward. The Southland Regional Development Strategy was endorsed and launched by the joint Southland Mayoral Forum in October 2015. It was a privilege to be part of that process on behalf of SIT and get to a point where there was general agreement that while the economy of Southland is vitally important, people are what we need to focus on most for the future. Southland is punching well above its weight in economic terms producing 15% of New Zealand’s tradable exports with only 2.3% of New Zealand’s population. With skill shortages predicted over the next 10 to 15 years, retention of the current population, increased migration and increased international students are key to meeting the needs of local industry and retaining a high quality social and economic life. In 2015, SIT continued double figure growth of international students, up 26% on 2014 numbers. This is aligned with the direction of the Southland Regional Development Strategy and is signalled to be an important part of the implementation process of the strategy over ensuing years. It is this close alignment with the Southland community and Southland industries which has become such a feature of SIT. We were pleased to gain approval of our Māori Strategy and Pasifika Strategy after appropriate consultation with relevant community and Iwi groups.

Highlights in Summary ªª Presentation of the inaugural Tohu Manukura Māori Leadership Award to Chloe Hetaraka ªª Approval and implementation of Māori and Pasifika Learning Strategies for greater accessibility and better achievement outcomes

ªª SIT Productions provided training to Film Fiji ªª SIT2LRN received over 4,000 online enrolments nationwide after launching its online enrolment capability ªª Hosting 300 Americans on Travel and Learn programmes between January to May ªª Partnership with Southland Chamber of Commerce and business community to integrate graduates in to employment ªª Over $100,000 in scholarships and prizes donated by the community for SIT’s end of the year Award Ceremony ªª Agents’ familiarisation visits from India, Philippines, Sri Lanka ªª Two new Heads of Faculty for New Media, Arts and Business; and Trades and Technology ªª Successful application for a Murihiku Trades Academy with 40 places allocated ªª New partnership opportunities with Te Wananga O Awanuiarangi ªª Key statistics from our Graduate Destination survey • 95.7% of 2014 graduates were either employed, self-employed or undertaking further studies within 6 months of graduating • 96.4% of graduates were working in New Zealand with 38.3% working in Southland • The median salary for 2014 graduates was $41,600 up on $37,400 for 2013 • 95% of graduates in 2014 were satisfied overall with the quality of programme they studied at SIT ªª Results from SIT graduate Employment Survey showed that • 77% were positive about the interpersonal attributes of SIT graduates in relation to working with colleagues, clients and customers

ªª 26% growth in international students in 2015

• 73% showed capacity for co-operation and teamwork

ªª Approval and accreditation of first two Masters in Southland, Master of Applied Management and Master of Information Technology.

• 68% showed ability to apply knowledge in the workplace

ªª Three offshore accreditations with Hubei University of Education Partnership ªª Setting up of regional strategy transition group “Welcome to Southland” to link growth in international students with regional strategy ªª Largest intake of Postgraduate Diploma in Business Enterprise students ªª SIT student performance on par with sector averages for Educational Performance Indicators

ªª Alumni project launched ªª Recognition of CFO and Deputy CE (Corporate) Bharat Guha by Chartered Accountants of Australia and New Zealand for 25 years of membership as a Chartered Accountant ªª Youth Guarantee student quota met and additional allocation sought and met ªª New Campus Manager appointed in Queenstown ªª Completion of Joint Research SIT/Hubei University of Annual Report 2015 |

GOVERNANCE AND MANAGEMENT

Education (HUE) on Hotel Management Industry ªª New sports facility extended and renovated, gym and testing centre for staff, students and the sport and exercise science programme ªª Postgraduate Diploma in Business Enterprise 97% completion rate ªª Scholarship agreement for students with one of the world’s top ten luxury lodges – Blanket Bay ªª International Relationships signed with International College of Business and Technology Sri Lanka ªª Student Achievements • Stephen Garton, Bachelor of Contemporary Music and Bachelor of Audio Production student was the winner of Three Minute Thesis Competition and 2015 recipient of the Fletcher Challenge Trust Award • Dan Stryczek won the NZ APRA award for the Best Children’s Music Song of 2015. • Environmental Management student, Olivia TaylorPeebles, won the Kauri Seed Scholarship to attend the New Zealand Ecological Society Conference in Christchurch • Beauty Therapy student, Tania Hayes, named New Zealand’s top make up student for 2015 by Wendy Hill Cosmetics Ltd

Penny Simmonds Chief Executive

| Annual Report 2015

Financial The 2015 surplus of over $2.4m was well ahead of the $888,000 budgeted surplus. Several factors contributed to this improved result including greater than budgeted international student numbers, increased funding allocation for YG and SAC places throughout the year where targets were reached as well as increased delivery through SIT2LRN, SIT’s distance delivery unit. Sound academic results, strong employment outcomes along with consistently high satisfaction ratings completed the picture for another successful year across the board for SIT in 2015. I wish to acknowledge the contribution of all staff to meeting these positive outcomes across a full range of performance indicators. Staff commitment to our students and stakeholders is core to achieving these successes again in 2015, and I extend my thanks to staff for another year of superb effort. SIT continues to thrive under the leadership of Chair Sarah Brown and Deputy Chair Peter Heenan. On behalf of all staff I record our thanks to Sarah and Peter and the SIT Council for the direction they set for the institute, the wisdom they bring to their governance roles and the commitment they have for ensuring SIT remains viable and relevant for the many stakeholders we serve.

GOVERNANCE AND MANAGEMENT GOVERNANCE AND MANAGEMENT

Statement of Responsibility The Council and management are responsible for the preparation of the Southern Institute of Technology and groupâ&#x20AC;&#x2122;s financial statements and statement of service performance, and for the judgements made in them. The Council and management of the Southern Institute of Technology have the responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting. In the Council and managementâ&#x20AC;&#x2122;s opinion, these financial statements and statement of service performance fairly reflect the financial position and operations of the Southern Institute of Technology and group for the year ended 31 December 2015.

Sarah Brown

CHAIRPERSON OF COUNCIL

Penny Simmonds CHIEF EXECUTIVE

18th April 2016 Annual Report 2015 |

GOVERNANCE AND MANAGEMENT

SIT Council and Management Team SIT prides itself on its strong governance and management structure which underpins the Institute and is focussed on the provision of high quality, fiscally responsible, educational programmes that meet industry, community and learner needs.

Committees of Council Finance and Audit Committee This committee monitors financial performance and forecast outcomes and makes appropriate enquiries into internal control systems and mechanisms. It has direct involvement in key strategic decisions that affect the financial position of SIT and has a delegated responsibility to oversee the external and internal audit process.

| Annual Report 2015

Academic Board The Academic Board is responsible to the SIT Council through the Chief Executive for the academic policies, direction and development of the Institute, and advises and responds to Council and the Chief Executive on all academic matters; develops, maintains and reviews academic policies; ratifies those programmes to be included on the TEC database; approves and monitors programmes against established standards; establishes and approves the terms of reference for any subcommittees or task forces; maintains oversight of Teaching and Learning Boards of Studies, Advisory Committees and Faculty Research Committees.

Ethics Committee This committee is charged with establishing and maintaining a code of ethical conduct for research undertaken at SIT and approving or resolving of ethical issues arising from SIT staff research activity.

GOVERNANCE AND MANAGEMENT

Council Members

Dean Addie

Murray Donald

(Deputy Chair)

Community Appointment

Appointed as Chair by Tertiary Education Minister Steven Joyce in August 2011, Sarah has served as a community representative on the Council since 2006. Currently Project Manager for the Southland Regional Development Strategy, Sarah has also worked in human resources at New Zealand Aluminium Smelters. Sarah is a member of the Institute of Directors, and director of Electricity Invercargill Ltd, Powernet and Southern Lakes English College.

Ministerial Appointment Peter Heenan has a strong background in business and community. Peter is the Executive Director of Finance for the HW Richardson Group, a trustee of the Southland Hospice Charitable Trust and former chairperson of both the Southland Boys’ High School and Netball Southland Boards. He was appointed as Deputy Chair by the Minister in 2011.

Dean is the CEO of EIS Automation and Electrical, a Southland based organisation. Dean is a member of the Institute of Directors and a Fellow of the New Zealand Institute of Management. Dean holds other board and trustee roles including: National Board Member of New Zealand Institute of Management; Deputy Chair of Southland Foundation for Youth Development; Chair of Dog Island Motu Piu Trust and a board member of Southland Chamber of Commerce.

Murray has a wide range of experience in agribusiness enterprises and farms sheep and beef in the Waianiwa district. Murray is a Fellow of the Institute of Directors, Chair of the Alliance Group Trustee Ltd and trustee of Agri-Women’s Development Trust. Formerly a director of the Alliance Group Ltd, Murray was also director of Farmers’ Mutual Group and an Advisory Group member of Geni-Ruralzone.

Peter Jackson

Jeff Grant

Michael Skerrett

Ministerial Appointment

Tim Ward

Ministerial Appointment

Jeff farms deer, beef and sheep at Balfour and brings extensive agribusiness and national governance experience to the council. A former Member of Parliament, Jeff is chairman of the board of directors for OSPRI New Zealand, NAIT Ltd, TB Free Ltd, Milford Sound Development Authority, Southland Shared Services and Mt Linton Station Ltd. He is also a director of SBS Bank, Finance Now Ltd, AgResearch and Cooper Valley Holdings. Jeff has held directorships in agribusiness including former chair of the NZ Meat Board, Meat and Wool New Zealand and the Primary Industry Council.

Michael was recognised by SIT with the institute’s first Honorary Fellowship in 2013, and was awarded the Queen’s Service Medal (QSM) in the 2014 New Year Honours List for his leadership and contribution to Maori and the Southland community. Michael is Kaupapa Taiao Manager of Te Ao Marama Inc., Chairman of Waihopai Runaka, Waihopai Runaka representative to Te Runanga o Ngai Tahu, Chair of Murihku Holdings, Waihopai Runaka Holdings and Chair of Kaitiaki Ropu o Murihiku.

Sarah Brown (Chair)

Peter Heenan

Community Appointment

Community Appointment Peter is a Director of H2O Design Ltd, an accredited member of the Institute of Directors, Chair of the Plumbers, Gasfitters and Drainlayers Board and Deputy Chair of Site Safe New Zealand. Peter is trustee of the Apprentice Training Trust, New Zealand’s representative on the World Plumbing Council, and Business Mentor for Business Mentors of New Zealand.

Ministerial Appointment

Tim Ward brings a range of business and community experience to the table. He is Managing Partner of BDO Invercargill, former chair of BDO’s national organisation and is a Fellow Chartered Accountant. A former elected member and Deputy Chair on the Southern District Health Board, Tim chaired the Audit and Risk Committee for the Board. Tim is also the Diocesan appointment to Verdon College’s Board of Trustees.

Annual Report 2015 |

GOVERNANCE AND MANAGEMENT

Management Team Penny Simmonds Chief Executive

Patsy Eade

Teri McClelland Head of Faculty SIT2LRN

| Annual Report 2015

Bharat Guha

Maree Howden

Deputy Chief Executive Corporate

Deputy Chief Executive Academic

Chief Financial Officer

Head of Faculty Health, Humanities and Computing

Mike Grumball

Human Resources/ Infrastructure Manager

Head of Faculty Trades and Technology until November 2015

Phillip Morrison

Douglas Rodgers

Head of Faculty New Media, Arts and Business from October 2015

Head of Faculty Trades and Technology from November 2015

Amanda Knowles

Academic Operations, Student Support and Business Development Manager

Lucille Hatley

Head of Faculty (Acting) New Media, Arts and Business until May 2015

Student Achievement Academic Achievement Educational Performance Indicators Reporting requirements for 2015 were changed by the Tertiary Education Commission as compared with those for 2014. Therefore not all comparisons can be directly made; however all endeavours have been undertaken to ensure the reporting below is as meaningful and clear as possible. Educational Performance Indicators remained stable for SIT throughout 2015. While there were slight declines in some areas, these are predominately a result of changes in reporting requirements from overall combined delivery to a separation of delivery by level. It was particularly pleasing to note the increase in Pasifika learnersâ&#x20AC;&#x2122; course completions at all levels in SAC level 3 and above, as well as the improvements in the course and qualification completions for Youth Guarantee students, where our students were rated second in the sector for course completions at 84%. In 2015 SIT continued its substantial investment in student support. This investment has paid off with increases in student retention from 1% to over 6% across all priority learner categories and increases in student progression from 0.2% to 13% across all priority learner categories at SAC reporting levels of 3 and above. These increases in student retention and progression were also reflected in the SAC level 1 and 2 learners. 2015 was the sixth year of SIT delivery under the Youth Guarantee Scheme, and was the largest delivery year, with over 100 students enrolling in the scheme. Throughout the educational delivery of the Youth Guarantee programmes SIT continued significant academic and pastoral support for these priority learners with this investment also yielding large benefits in increases in Educational Performance Indicators across the board. Course and qualification completions increased between 1% and 9% for all Youth Guarantee Scheme learners. As noted above course completions overall were second in the sector at 84%, and retention was up over 4% for level 3 learners. The increase in student progression of 5% to 10% for Youth Guarantee Scheme students is very pleasing given the TES emphasis on progression of students from lower levels of study to higher levels of study.

| Annual Report 2015

Educational participation and achievement outcomes (% of total EFTS) - provisional results SAC Level 3 and Above Students Participation 2014

2015

Level 3 and above

32.8%

5.0%

32.6%

Level 4 and above

25.1%

29.0%

25.7%

Level 3 and above

11.9%

5.0%

13.1%

Level 4 and above

9.3%

9.0%

10.7%

Level 3 and above

2.4%

1.0%

2.8%

Level 4 and above

1.5%

2.0%

1.8%

Actuals

Target

Actuals

Under 25

Maori

Pasifika

Course Completion rse Completion Rates 2014

2015

All levels

79.2%

n/a

77.7%

Level 3 and above

78.9%

80.0%

77.5%

Level 4 and above

78.9%

80.0%

77.6%

All levels

80.5%

n/a

78.9%

Level 3 and above

80.4%

83.0%

79.5%

Level 4 and above

81.4%

83.0%

80.7%

All levels

74.2%

n/a

72.6%

Level 3 and above

73.1%

72.0%

71.3%

Level 4 and above

74.0%

75.0%

71.0%

All levels

65.0%

n/a

68.9%

Level 3 and above

64.1%

72.0%

65.9%

Level 4 and above

59.4%

75.0%

66.5%

Actuals

Target

Actuals

All Students

Under 25

Maori

Pasifika

STUDENT ACHIEVEMENT

Student Progression

Qualification Completion 2014

Actuals

2015 Target

2015

Actuals

2014

2015

34.8%

42.0%

35.0%

36.0%

44.0%

37.9%

26.3%

42.0%

39.1%

2015

Actuals

Target

Actuals

All Students

All Students All levels

73.2%

n/a

68.7%

Level 3 and above

73.2%

74.0%

68.2%

Level 4 and above

74.2%

74.0%

69.4%

All levels

78.6%

n/a

68.2%

Level 3 and above

79.7%

78.0%

68.6%

Level 4 and above

83.5%

78.0%

71.5%

All levels

66.4%

n/a

59.1%

Level 3 and above

65.6%

66.0%

55.9%

Level 4 and above

67.3%

66.0%

55.6%

Under 25

Levels 1 to 3, to a higher level Maori Levels 1 to 3, to a higher level Pasifika Levels 1 to 3, to a higher level

Maori

Other Commitments 2014

Actuals

Pasifika

Target

All levels

58.9%

n/a

54.1%

The number of International student EFTs

Level 3 and above

59.5%

66.0%

49.7%

All levels

Level 4 and above

57.6%

66.0%

54.0%

Student Retention

664

Actuals

650

836

2014

2015

SAC Levels 1 and 2 Students 2014

Actuals

2015 Target

2015

Actuals

All Students

Actuals

Target

Actuals

Participation

All levels

65.5%

n/a

67.5%

66.2%

58.0%

Maori

2.7%

3.0%

2.7%

Level 3 and above

67.4%

Pasifika

0.4%

0.3%

0.4%

All levels

68.7%

n/a

72.6%

All students

81.6%

80.0%

79.2%

Level 3 and above

71.6%

n/a

73.3%

Qualification Completion 72.8%

75.0%

72.1%

59.5%

65.0%

68.1%

40.4%

46.0%

40.8%

Under 25

Course Completion

All students

Maori All levels

57.0%

n/a

63.0%

Level 3 and above

56.0%

58.0%

62.4%

All levels

51.4%

n/a

55.1%

Level 3 and above

50.9%

58.0%

55.6%

Pasifika

Student Retention All students Student Progression All students

| Annual Report 2015

STUDENT ACHIEVEMENT

Youth Guarantee Students Course Completion 2014

2015

Level 1

n/a

55%

n/a

Level 2

73.6%

70%

84%

Level 3

82.8%

80%

83%

2014

2015

Levels 1 & 2

46.7%

56%

48%

Level 3

72.5%

66%

76%

2014

2015

Level 1

n/a

50%

n/a

Level 2

56.7%

70%

50%

Level 3

82.5%

70%

87%

2014

2015

Level 1

n/a

40%

n/a

Level 2

31.3%

55%

41%

Level 3

14.3%

35%

19%

Actuals

Planned Commitment

Actuals

All students

Qualification Completion Actuals

Planned Commitment

Actuals

All students

Student Retention Actuals

Planned Commitment

Actuals

All students

Student Progression Actuals

Planned Commitment

Actuals

All students

Annual Report 2015 |

STUDENT ACHIEVEMENT

96% of Graduates Employed or Studying

Graduate Outcome Benchmarking Report

The Graduate Outcome Survey was distributed in July 2015, approximately 8 months after students completed their 2014 qualifications. The survey explored the graduates’ satisfaction with their experiences at SIT, their success in finding employment following graduation and the degree to which the skills and knowledge they had gained prepared them for their chosen careers.

As in 2014 SIT participated in a graduate outcome benchmarking exercise with four other ITPs.

The response rate was satisfactory at 41 per cent, ensuring a valid sample of over 1,000 graduates with excellent results and feedback provided. Results showed that 96% of graduates were working or undertaking further study, with the majority enrolled at SIT for further study. Seventy-five per cent of graduates were employed and the median gross annual salary was $41,600 compared to $37,440 in the previous year.

Nearly all the graduates were satisfied with the quality of their programme with 95% expressing overall satisfaction, up 1% from the previous year. A large majority (92%) confirmed that they would recommend their programme to others and considered the programme represented good value for money.

| Annual Report 2015

The report was prepared from data collected by questionnaires administered by the Organisational Researcher on behalf of the participating institutions. The report also compared the selected responses received from the participating institutions against those reported in the Australian Graduate Survey (AGS) 2015 of domestic Australian university graduates. The overall response rate was 31% with SIT’s response at 41%. SIT performed very well in the comparative exercise and was ranked the top institute by a small margin in the following categories: ªª Graduates’ overall satisfaction with the programme – 95% (average 94%) ªª Would recommend the programme to others - 92% (average 91%) ªª Programme represented value for money- 92% (average 90%) ªª Graduates studying or enrolled to study- 31% (average 30%) Compared to 2014 SIT had fewer graduates in employment at 75% (average 78%).

STUDENT ACHIEVEMENT

Success in Hokonui Fashion Awards Leads to Industry Internship Matt Costello who received highly commended for his entry in the 2015 Hokonui Fashion Awards menswear section, was in his first year of the Bachelor of Fashion (Design and Technology) programme when he decided to take part in the awards.

SIT Beauty Therapy Student Wins 2015 New Zealand Make-Up Competition

Matt spent many sleepless nights trying to come up with the garment he wanted to showcase in the awards and had to learn new techniques and use of new equipment as part of his preparation.

“Seeing something I created just walking down the runway was a huge achievement for me. I did not expect to get anywhere as there were a lot of good creations,” says Matt. Receiving third for his garment in a high profile fashion competition was a significant achievement and he says it proved he was part of the right tertiary study programme and on the right path. He will be in his second year of study in 2016 and has been offered an internship with Equinox Apparel. “I’m currently working on the release of my clothing label and will be working on this throughout the years to come with the help of SIT and Equinox Apparel,” Matt says. Altogether thirteen SIT Bachelor of Fashion (Design and Technology) students entered the Hokonui Awards across categories such as Recycled, Nightlife, Collections, Evening Wear, Street Wear, Steam Punk and Menswear and seven students received the following category awards: ªª Streetwear Award-Beverly Smit (Highly Commended) ªª Recycled Award-Kasandra Rattrie (Runner Up) ªª Menswear Award-Matt Costello (Highly Commended) ªª Steampunk Award-Leone Mason (Runner Up) ªª Open Section Merit Awards-Beverly Smith, Matt Costello ªª Open Section Presented Best Paperwork-Ashleigh Clare

Tania Hayes with model and fellow Diploma of Beauty Therapy student Devon Millan

Hard work has paid off for Beauty Therapy student Tania Hayes who has been named New Zealand’s top makeup student for 2015. The New Zealand-wide makeup competition, organised and run by Wendy Hill Cosmetics Ltd in association with tertiary training institutions, acknowledged excellence in makeup studies amongst students undertaking study in recognised beauty therapy, beauty services and/or makeup courses. The competition has been running since 2005, and this is the second time a SIT student has taken top honours. Wendy Hill Cosmetics Managing Director, Tiffany Pule said Tania showed an excellent understanding of photographic makeup and that was very evident from the photographs. “Not only was her technique to a very high standard, but the makeup shades chosen were perfect for the model’s skin tone and resulted in a beautiful sparkling bride.” Tutor Joanne Terry said she encouraged Tania to enter and was thrilled she had won. “I’m really proud” she said. “All her hard work has paid off.’’

Annual Report 2015 |

STUDENT ACHIEVEMENT

SIT Trades Apprentices Represent New Zealand at World Skills Competition

Skill Base for Industry Training Achieved through SIT2LRN Programme SIT National Certificate in Adult Education and Training (Level 5) graduate Doug Hall understands the importance of solid industry training. Doug began his working career as an apprentice mechanic at VTR Motors on Dee Street and during his seven years there he gained an A grade certificate in automotive engineering. He moved on to New Zealand’s Aluminium Smelter (NZAS) where he intended working for a couple of years, however 26 years later, having changed roles a number of times, he is currently a Crew Leader at the Composite Contractor Group on site.

Plumber Adam De Pass says his experience as part of the Tool Black Team is one he will never forget. Adam and joiner Michael Good and mechanic Nick Bastiaansen (all SIT trades apprentices) formed the Southland contingent of the New Zealand team to compete internationally at the World Skills in Sao Paulo Brazil in early August. He says he felt honoured when it was New Zealand’s turn to walk through the stage in the arena while everyone cheered and the flag waved underneath on the big screen. “It was then that we stopped and performed the haka and made the cathedral-like arena go quiet,” says Adam. He says that was something that not many people get to experience in their life.

Adam was the recipient of the “Best of Nations” an award given to a competitor from each country with the highest amount of points obtained through the competition. He achieved 521 out of a possible 600.

“Being awarded the “Best of Nations” award and having the honour to hold up the New Zealand flag on the world stage with a massive crowd full of people made me feel so privileged and proud to be a Kiwi.” Michael, who had never been overseas prior to the Brazil trip, represented the joinery trade both for his team and for New Zealand. “I felt like I was part of something big, representing our country overseas against the rest of the world,” he says. “It was a great experience and a once in a lifetime opportunity.”

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Doug’s employer wanted a contractor trained in mobile crane operation and Doug was selected to train him. “The skills I learnt from studying for the Level 5 Adult Education Certificate gave me an up-to-date skill base to do this well,” he says. “This studying and qualification really paid off as the contractor concerned, Nik Taylor, was selected as the Skills Crane Trainee of the Year at the 2015 Crane Association of New Zealand conference.” Doug was initially interested in studying the Level 6 Diploma in Occupational Health and Safety, however he decided to undertake a Level 5 qualification first so that he could become comfortable with the SIT online learning system. “I had completed the Level 4 Certificate in Adult Education some years before and decided to upgrade that to a Level 5,” he says. Doug says he received good support from SIT and the facilitators were able to answer all his queries quickly. “I would also say that having the NZAS training specialist providing support in the background was very beneficial. “It’s important that employers support their employees if they are doing any further skills training, as it benefits everyone including the business.” Doug has just completed three unit standards for the Diploma in Occupational Health and Safety and has applied to complete another two in 2016.

STUDENT ACHIEVEMENT

Student Satisfaction Survey: 92% satisfied

SIT Students Prominent in Community Links

The purpose of the Student Satisfaction Survey is to collect information on the overall experience of students, which assists SIT to improve the programmes and services it provides.

ªª Bluff Hill Environmental Trust Support: Bachelor of Environmental Management students assisting with possum control and building vermin traps at the Bluff Marae

As in the 2014 Student Satisfaction Survey an online option via Blackboard was undertaken by the majority of students and SIT continued with the use of percentage ratings to align with the methodology used by other institutes of technology and polytechnics to allow for benchmarking exercises.

ªª Environment Southland: Bachelor of Environmental Management students continuing to remove wilding pines from Mid Dome and Queenstown,

Overall, 92% of the students were satisfied with the programmes they were enrolled in, compared to 93% in 2014. In addition, SIT has continued its satisfaction rating of more than 90% in the following key areas: ªª Student support services such as Health Nurse, Counsellor, Learning Assistance Tutors, Peer Support Scheme, Disability Liaison Officer, Tauira Tautoko (Maori Student Support Centre), Student Activities Officer and Library Staff ªª Library, equipment and resources ªª Course content, assessments and feedback on academic and administrative staff. Plans for 2016 include working with Otago Polytechnic and other ITPs to produce a student satisfaction benchmarking report to provide a comparison between institutions.

ªª Forest and Bird Te Rere Reserve: Bachelor of Environmental Management students engaging in riparian planting ªª Sport Southland: internships with Bachelor of Sport and Exercise students ªª Southland Sharks: Bachelor of Sport and Exercise students providing Game Analysis ªª Southland Stags: Bachelor of Sport and Exercise students assisting with Sports Conditioning ªª Cycling Southland: Bachelor of Sport and Exercise students assisting with the Tour of Southland ªª Chrysalis Fashion Showcase: public production by students in the Bachelor of Fashion (Design and Technology), Bachelor of Contemporary Music, Bachelor of Audio Production ªª Wyndham charity fundraising event: Bachelor of Hotel Management students providing event management for this fundraiser ªª New Zealand Aluminium Smelters families’ annual hospitality function: Bachelor of Hotel Management students providing event management for this function ªª New SIT Gymnasium: Sport and Exercise students expanding links with industry and the general public ªª Land Search and Rescue: development of software to assist to track rescue personnel while in the field by Bachelor of Information Technology students ªª MS Society: development of booking system to track bookings for accommodation by Bachelor of Information Technology students ªª University of Otago: joint training experiences with SIT Bachelor of Nursing students and Otago University trainee interns at the SIT simulation suite and at Southland Hospital ªª Community health checks at various venues including supermarkets and the Invercargill Prison: Bachelor of Nursing Students ªª Ruru School Ball: contribution by Diploma in Beauty Therapy students ªª Calvary Rest home for Melbourne Cup & Christmas visits: Diploma in Beauty Therapy students ªª Fundraising for Gore Women’s Refuge, Lakes District Air Rescue Trust, Hospice Southland, SPCA and ILT Stadium Southland: Certificate in Construction students

Annual Report 2015 |

Student Support Disability Liaison Service In 2015, 567 students declared disability on enrolment, and of these 151 (27%) accessed the Disability Liaison Service (DLS).

Life Changing Event Reminded Steve Morris of his Passion for the Environment

Student Achievements ªª 85% of students who declared disability were retained in their courses ªª 73% of students who declared disability successfully completed their courses ªª 21 students who accessed the Disability Liaison Service were Certificate graduates ªª 24 students who accessed the Disability Liaison Service were Diploma or Bachelor graduates

Student Feedback ªª 33 students who received support (22%) responded to the Disability Liaison Service Survey ªª Survey respondents identified teaching staff (38%) and word of mouth (32%) as the most common source of information about the DLS ªª 93% of survey respondents reported the DLS enabled them to continue in their course ªª 84% of survey respondents reported the service enabled them to better meet their educational goals

Student support ªª 24 students screened positive for Irlen Syndrome and were provided with appropriate remedial options.

Steve Morris was recuperating from bi-lateral carpal tunnel surgery, when he was involved in a team trying to help a whale that had beached itself at Omaui. Although the whale was refloated, sadly it beached itself again and had to be euthanized. However the experience had changed Steve’s mind-set towards an environmentally-related career path he had long since forgotten. “I had lost sight of my passion in life,” he said. He had worked in a number of mainly labour-type roles and dreaded the idea of going back to manual work. Bad experiences with study in the past, due to his dyslexia, had led Steve away from further education, but he plucked up the courage, applied and was accepted into the Bachelor of Environmental Management degree at SIT. The Disability Liaison Officer was outstanding when it came to the assistance he required to successfully complete his study. She organised a reader/writer for Steve and he found it a lot easier just having to concentrate on what he wanted to say, rather than what he needed to write. “It made a huge difference,” he said.

ªª 30 students received alternative formats in relation to their course work

“All the tutors, as long as you’re not wasting their time, are 200 per cent behind everybody.”

ªª 16 students accessed parking permits for on-campus car parks

Steve said he felt honoured to have been gifted with a wealth of information and found the environmental management field trips most enjoyable. He also enjoyed working on a research project in an area he is particularly passionate about – pest control, and has developed “The Number-8-Wire Pest Project’ in the hope of encouraging more New Zealanders to get on board with ideas to deal with New Zealand’s pest problem.

ªª 29 items of equipment were issued for student support and learning ªª 1842 staff support hours were delivered to support 42 students ªª 67 staff attended training sessions offered by the DLS

Steve said completing the SIT degree was the best three years of his life, educationally, personally and socially.

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STUDENT SUPPORT

Youth Guarantee Scheme 2015 was the sixth year of Youth Guarantee Scheme delivery at SIT. It was the largest year to date with 108 students enrolling into the Scheme in Invercargill, Christchurch and Queenstown. For the first time the scheme was offered in Queenstown, which has proven to be a great success with five students enrolling and passing their courses successfully. Eighty-five students from various high schools also participated in the Hokonui Tertiary High School programme, which operates under the Youth Guarantee umbrella. The Youth Guarantee Scheme was offered to trades approved courses where a high need of support for young students is required. The Youth Guarantee coordinators have regular one on one meetings with each student where goals are set to ensure they are succeeding academically and personally to their highest ability. The Youth Guarantee coordinators also work alongside tutors and other SIT support staff to ensure young people are being assisted in the best way possible. Lunches are held throughout the year and guest speakers are invited to talk to the students about personal development and achieving to their highest potential.

Achievements: ªª One Youth Guarantee student received the Top Student Award and one student received the Most Improved Student Award at the SIT Annual Award Ceremony

Employment Support and Speed Networking Events Assist Students The following statistics were recorded for the 2015 year: ªª 109 vacancies listed on Situations Vacant ªª 30 vacancies filled by SIT students (16 Domestic, 14 International) ªª 152 Students received CV/employment advice (44 Domestic, 108 International) ªª Employment workshops for international students conducted six times throughout the year with each intake including approximately 60 students SIT worked in conjunction with the Chamber of Commerce Southland to offer two speed networking events with employers and graduating students in March and in September. The March event was held with 10 employers and 10 students with each student talking to each employer. This format was changed for the September event to capture more students which was successful. Twenty-three students from the School of Business and the School of Information Technology met with 8 local employers looking for employees within the areas of Marketing, Management, Accounting and Information Technology. Very positive feedback for the event was received from both students and employers.

ªª Six Youth Guarantee students received Invercargill Licensing Trust Trade Scholarships ªª One Youth Guarantee student won the novice section of the Southland Hairdressing Awards and was placed 3rd at the New Zealand National Hairdressing Competition. ªª From the total of 108 Youth Guarantee Scheme students, 104 (96%) were retained in study and 83 (76%) successfully achieved their qualifications. This represented a significant increase on the 2014 figures.

Students enjoying Orientation Week

Annual Report 2015 |

STUDENT SUPPORT

Social Sports Encourage Intercultural Understanding

Other Student Services

Students participated in a wide variety of sports throughout the year:

ªª Learning Assistance Unit

Dodge Ball, Badminton, Basketball, Indoor Bowls, Indoor Cricket, Netball, Table Tennis, Touch Rugby, Volleyball, Yoga, SIT/Appleby Cricket

ªª Student Activities Officers

Highlights for social sports 2015 ªª Cultural interaction and understanding encouraged between students, with domestic students helping international students with their English, helping them to understand new sports and rules and assisting them to feel part of a team ªª Committed students running and organising their teams on game nights ªª Social Volleyball being developed into an SIT Premier Team made up of various nationalities that made the final of the Southland Competition ªª Running “King of the Hall” Table Tennis events which has seen students participating and creating an energetic atmosphere not only at the event but prior and afterwards around campus ªª Dodge Ball grew from one minor team to two strong teams attending with international students taking part in a sport that they had not experienced previously ªª The relationship with Appleby Cricket Club which resulted in a SIT/Appleby cricket team playing in the Southland Country/Town competition ªª Students enjoying interaction with staff showing support, and an interest in them. Without this interaction at various venues social sport in 2015 would not have been as successful ªª Receiving reports from students of the benefits that participating in social sport had given them while studying ªª Students representing SIT in a proud, professional manner amongst other community sports groups

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In addition to those detailed in this section, SIT provides the following services for students which were included in the student satisfaction survey and all received satisfactory ratings for 2015: ªª Health Nurse and Counsellors ªª Library ªª Peer Support

Equal Employment Opportunities (EEO) SIT has provided individual reports on the following: ªª Maori students: refer pages 23-27 ªª Students with Disabilities: refer page 20 ªª Youth Guarantee students: refer page 21 ªª International students: refer pages 28-31 ªª Staff Training and Development: refer pages 38-47

Māori and Pasifika Focus SIT Māori Tertiary Education Strategy Confirms Commitment

Chief Executive Penny Simmonds said that the percentage of Maori in the NZ population was increasing. Decades of education in NZ had not served Maori well and the need to address this was a matter of national importance and was clearly signalled in the Government’s Tertiary Education Strategy as a priority.

Recruitment of Maori students, their retention and success is important to SIT to give meaning to our commitment to the Treaty of Waitangi said Chief Executive Penny Simmonds.

“It is also our duty as a tertiary education institute in New Zealand to help preserve Te Reo and Tikanga Maori as a part of the heritage of our country that belongs to everyone.”

“It is important to the students who identify as Maori to enable their future career success, and to our community and the industries and organisations within it to meet skill and employment needs.”

The main purpose of the SIT Maori Tertiary Education Strategy is to improve educational outcomes for Maori at SIT by ensuring that our Maori students are well prepared for further study, employment or self-employment upon their graduation.

SIT and the Maori community have enjoyed a strong relationship for many years, and have now worked together to develop a formal SIT Maori Tertiary Education Strategy.

It offers the opportunity to build on the success of existing strategies, while integrating new ideas and practices which will provide a direction for SIT in the future.

Annual Report 2015 |

MAORI AND PASIFIKA FOCUS

Māori Students’ Participation at SIT

Programme Selection and Performance

An important goal of the Tertiary Education Strategy 20142019 is to increase the number of Māori students enjoying success at higher levels. Sixteen per cent of SIT’s students identified as Māori in 2015, a figure higher than Māori representation in the Southland 2013 census population figures (12.44%). The Māori population in Southland has grown from 10,422 between 2006 and 2013 – at a slightly slower rate than the overall Southland population which has grown from 90,873 to 93,342. SIT’s longstanding, collaborative relationships with the Māori community and its strategic established relationship with Te Wānanga o Aotearoa have been influential factors in assisting with attracting Māori into tertiary education and supporting students to achieve.

In 2015, 32% of Māori students were enrolled in level 1-3 programmes and 68% in level 4+ and above. Students were well represented in subject areas, with the largest group studying towards Te Reo (22%) and the next largest group enrolled in business (21%). These groups were followed by trades, engineering and technology (12%) and health programmes (10%). Studying arts was the next most popular choice (8%), followed by tikanga (7%), sport and recreation (6%), occupational health and safety (4%) and equal numbers in education, primary industries and information technology (3%). Only 2% of students chose environmental management.

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Provisional 2015 data shows a small decrease in Maori students completing courses at level 3 and above, from 74% in 2014 to 73% in 2015. There was also a decrease in qualifications completion with 59% completing in 2015 compared to 66% in 2014. SIT is committed to working with the Māori community and students to further improve educational performance, and has developed a Māori Tertiary Education Strategy to strengthen consultation with iwi and to support Māori students in achieving their study goals.

MAORI AND PASIFIKA FOCUS

Chloe Hetaraka Wins Inaugural SIT Tohu Manukura Māori Leadership Award

The SIT Tohu Manukura Māori Leadership Award is presented to Chloe Hetaraka by SIT Council member Michael Skerrett QSM, Kaumātua for Murihiku.

Revisiting education as an adult was a daunting prospect for SIT hairdressing student and leadership award recipient Chloe Heteraka, but she took a leap of faith and followed her intuition and enrolled in the Certificate in Elementary Hair Design at SIT after attending an open evening on campus. While studying both the Certificate and Elementary Hair Design and the Certificate in Visual Hair Design, Chloe gained first place in the Southland Association of Registered Hairdressing competitions in July for the Year 2 Novice section. She was then able to complete at the Supreme National hairdressing competition held in Auckland. Chloe says the icing on the cake was receiving the recognition at SIT Awards Night with the SIT Tohu Manukura Māori Leadership Award. “To be in the running for such an honourable award, I was completely ecstatic, not to mention winning it!” “My gratitude in accepting was very spiritual and humbling to me, my children and my loved ones.” Following the award ceremony, Chloe wore the Korowai respectfully, honourably and with pride. Still on top of the world and very thankful for the opportunity, she has recently been offered an apprenticeship at Dimensions

Hair Studio as a third year apprentice in order to complete her hairdressing certificate.

The SIT Tohu Manukura Māori Leadership Award is a new award initiated by SIT long-serving tutor Barry Leonard. The award recognises Māori students’ academic achievement, practical skills, participation and engagement in learning, and the ability to support and lead others. Māori awardees must display the following attributes: Whanaungatanga; Ako; Tangata Whenuatanga; Manaakitanga.

Annual Report 2015 |

MAORI AND PASIFIKA FOCUS

Tauira Tautoko Supports Māori Students

Partnership with Te Wānanga o Aotearoa (TWoA)

SIT’s Tauira Tautoko is a support centre for Māori students located at Te Pakiaka on the Forth Street area of the SIT campus. Tauira Tautoko is managed by the Ngā Kete Mātauranga Pounamu Charitable Trust to ensure strong pastoral and pan-iwi support for Māori students.

SIT’s longstanding strategic partnership with TWoA was established to ensure that the delivery of Māori programmes at SIT is relevant and culturally appropriate, and to enable staircasing opportunities for Māori students to progress to higher levels of training. TWoA delivers the following programmes at SIT campuses:

Tauira Tautoko supports Māori learners through the provision of facilities, resources, staffing, support and cultural services in a safe, encouraging environment targeted to improve Māori achievement. The following services are provided: ªª Supportive areas for study ªª Computer suite access ªª Study groups and access to academic support ªª Cultural advice and activities – kaumatua support, weekly waiata sessions, access to elders, kapa haka, waka toi, Matariki celebrations, Te Reo Māori Week ªª Access and connection to local iwi/marae and cultural events ªª Student support facilities – cooking support, shared lunches, cultural food exchanges ªª Regular community guest speakers ªª Access to JP ªª Phone home service ªª Information on health and social services available in the community

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ªª Certificate in Te Ara Reo Māori ªª Certificate in Advanced Te Ara Reo Māori ªª Certificate in Kāwai Raupapa ªª Certificate in Te Arataki Manu Kōrero ªª Certificate in Money Management ªª Certificate in Small Business Management ªª Certificate in Te Pūtaketanga o Te Reo ªª Diploma in Te Arataki Manu Kōrero ªª Diploma in Te Aupikitanga Ki Te Reo Kairangi ªª Diploma in Te Ara Reo Māori

MAORI AND PASIFIKA FOCUS

New Partnership to Develop Opportunities between SIT and Te Whare Wānanga o Awanuiārangi

Pacific Island Advisory Cultural Trust and SIT Develop New Strategy

SIT Chief Executive Penny Simmonds and Acting Chief Executive for Te Whare Wānanga o Awanuiārangi Professor Doherty have signed a Memorandum of Understanding to explore ways of working together to create new opportunities for students and staff of both institutions in areas such as programme alignment, pathways development, collaboration over teaching/learning tools and other development opportunities.

SIT recognised the need to confirm a vision for all staff to work towards positive outcomes for our Pasifika students said Chief Executive Penny Simmonds.

“Development of this relationship between the two institutions has been timely, as we each investigate opportunities and relationships to elevate our strategies and solidify foundations toward improving our respective presence in the tertiary sector over the next 30 years,” Professor Doherty said. “SIT was identified to have worked on extensive community building projects alongside their council and local businesses. Over the past 10 years they have created an improved economy by working together with their community to build capacity and pathway the population from education into the working environment.”

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The Pacific Island Advisory Cultural Trust has worked with SIT to develop a Pasifika Tertiary Education Strategy to improve participation and educational outcomes for Pasifika at SIT.

“This strategy offers the opportunity for SIT and the Pasifika community to build and enhance their relationship while integrating new activities, ideas and practices which will provide a direction for SIT in the future.” SIT and the Pasifika community have enjoyed a long standing relationship and this strategy provides an opportunity to confirm their partnership in a formal manner. The Strategy has been informed by the Ministry of Education’s Pasifika Education Plan 2013-2017 (PEP) which aims to see “Five out of five Pasifika learners participating, engaging and achieving in education, secure in their identities, languages and cultures and contributing fully to Aotearoa New Zealand’s social, cultural and economic wellbeing.” Pacific Island Advisory and Cultural Trust Chairman George Ngaei, ONZM said the Trust applauds this initiative, acknowledging and embracing diverse cultures whilst addressing educational needs.

Annual Report 2015 |

International Students and Partners International Student Numbers Continue to Increase

Educational Relationships with International Partners

In September 2011, the Government released its “Leadership Statement for International Education”. This document proposed a set of “stretch goals” and identified areas where the tertiary education sector could make significant contributions to these goals. Specifically, the Leadership Statement stated: “International education is a sector which has great potential to grow export earnings and to contribute more widely to our trade, innovation and research goals, together with expanding tourism and improving international connections.”

SIT continues to build its relationships with European partners through semester abroad studies. This has been popular with 23 students from Germany coming to SIT in 2015. These students mix into mainstream programmes and have a high quality academic standard which adds value to the classes and also helps domestic students gain a global perspective and communicate with people of other cultures. The majority of these students study in programmes such as the Bachelor of Commerce and the Bachelor of Environmental Management.

SIT has been one of the leading ITPs to show strong growth in its international student population over the past five years, and is projecting further growth in the future on the basis of this strong foundation. SIT’s year-on-year growth in its international student population has been strongly supported by our local industries and communities who see the need for skilled workers, population growth, enhanced tourism opportunities, and exposing both students and local businesses to the global market. In Southland SIT works collaboratively with Venture Southland and the local secondary schools as part of the Education Southland Consortium. This consortium has been commended by Education New Zealand as a successful model for regional New Zealand. In 2015, SIT hosted 1,231 international students, over 1,000 New Zealand permanent residents and 42 staff members from various countries, including: China, India, Sri Lanka, Nepal, Japan, the Philippines, Malaysia, Indonesia, the United States of America, the United Kingdom, Germany, Austria, Brazil, Vietnam, Korea, South Africa and Zimbabwe.

SIT’s relationship with the Hubei University of Education (HUE) in Wuhan, China has continued to grow from strength to strength. 2015 saw the first cohort of students graduate from SIT with a Bachelor of Hotel Management, and a further 12 diploma students arrived in Invercargill in preparation for commencement of their degree studies in 2016. In addition to an increasing number of students undertaking SIT programmes in English language and Hotel and Tourism Management, HUE and SIT have collaborated on another joint proposal to extend their relationship into the area of information technology. This new proposal has been approved by the Hubei Provincial Government and is currently under review by the Chinese Ministry of Education. SIT’s partnerships with international education institutions include: ªª People’s Government of Puning, Guangdong, China & Puning Vocational Institute of Technology (China) ªª Chinese Service Centre for Scholarly Exchange (China) ªª Columbian National Training Service (SENA) (Columbia) ªª Flensburg University of Applied Sciences (Germany)

SIT has achieved the following percentage growth in the number of international students enrolled at SIT from 2011 – 2015:

ªª Ho Chi Minh City University (Vietnam)

ªª 2011 - 2012: 10%

ªª Hong Kong Polytechnic University (Hong Kong)

ªª 2012 - 2013: 10% ªª 2013 - 2014: 20% ªª 2014 - 2015: 26% (from 664 EFTS to 835 EFTS)

ªª Hochschule Fuer Wirtschaft (HfWU) (Germany) ªª LP3i Polytechnic Indonesia (Indonesia) ªª Hubei University of Education (China) ªª University of Applied Sciences Upper Austria (Austria) ªª Vietnam National University of Agriculture (Vietnam) ªª Pearson VUE Authorised Centre ªª Rissho University (Japan) ªª PPKS/ICATS (Malaysia)

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INTERNATIONAL STUDENTS AND PARTNERS

SIT Deputy Chief Executive Joins NZ Asian Leaders’ Advisory Board SIT Deputy Chief Executive Corporate Bharat Guha has been elected onto the NZ Asian Leaders’ Advisory Board. New Zealand Asian Leaders was founded by leading New Zealand public law specialist Mai Chen who is a partner at Chen Palmer Law as well as Adjunct Professor at Auckland University and a board member of Bank of New Zealand. Alongside Mai Chen, Mr Guha joins top New Zealand Asian business leaders such as Frank Cui Head of BNZ Migrant Banking, Thomas Song Managing Director of Oregon Group Limited and Director of New Zealand King Salmon Co Limited, and Dr Xiaoying Fu who is currently Investment Delivery Manager within Auckland Tourism, Events and Economic Development. Mr Guha said he is excited about the opportunities his election will bring for SIT and the Southland export sector. He considered it was an opportunity to engage with high level Asian managers in New Zealand and make networks with Asian business leaders overseas that are vital to the growth of SIT and the Southland economy.

Memorandum of Understanding between SIT and Sri Lankan College Pleases Invercargill MP Invercargill MP Sarah Dowie was delighted with the announcement that SIT and the International College of Business and Technology (ICBT) in Colombo, Sri Lanka, had signed a Memorandum of Understanding to further educational links between the two organisations. “SIT’s contribution to the Invercargill and wider Southland economy is significant. I understand in 2015 there are 47 Sri Lankan students studying at SIT and the 2014 economic impact from international students on Invercargill city was $43.4 million in GDP. This Memorandum of Understanding with the International College of Business and Technology will only benefit our economy, employment and diversity. I am really looking forward to supporting this Sri Lankan partnership and further relationships with other institutions around the world”. The signing of the Memorandum by ICBT Chief Executive Officer, Dr Mohan Pathirana and SIT Deputy Chief Executive, Corporate Mr Bharat Guha followed the development of a partnership that offers mutual benefits for SIT and ICBT which is designed to grow and deliver quality education to their students. The memorandum involves staircasing opportunities for ICBT Higher National Diploma (HND) graduates to pathway into SIT bachelor degrees in commerce, applied management and hotel management. Students will study for two years to obtain the HND at ICBT in Sri Lanka and then have the opportunity to apply for a further year of study to complete their chosen bachelor degree at SIT’s Invercargill campus.

Annual Report 2015 |

INTERNATIONAL STUDENTS AND PARTNERS

International Mountaineering Twins Experience Intercultural Living in Southland Having conquered the seven highest mountain peaks of the world, Indian twins Nungshi and Tashi Malik continued their adventures in 2015 in Southland. The twins were awarded a New Zealand India Sports Scholarship (NZISS) and chose to study the Graduate Diploma in Sport and Exercise at SIT. Both Nungshi and Tashi were delighted to receive the opportunity to study in New Zealand, the home of their long time hero, Sir Edmund Hillary. They found the Graduate Diploma in Sport and Exercise a very practical programme, with a generous amount of one-on-one assistance when required. The pair found the tutors were sensitive to the needs of international students and helped provide a high quality support system to help students adjust to the new environment and successfully complete their studies. “The students here are from all corners of the globe, studying and socialising together,” Tashi said. “We had access to more advanced technology than we could hope for.” They say they were also involved in a range of extra-curricular and outdoor activities and had plenty of opportunities to interact with local and national communities, to experience inter-cultural employment and living. Pursuing sports and exercise physiology has given the twins frequent exposure to local environmental communities, government officials, social and corporate organisations. Invercargill is New Zealand’s best kept secret say the pair who found the community to be both friendly and welcoming. Future plans include completing the masters of sports science and starting work on a book detailing their journey so far.

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INTERNATIONAL STUDENTS AND PARTNERS

Russian Student Has Eyes Opened in Environmental Management Programme

Influential New Zealander Delivers Message for SIT International Students

Russian-born Graduate Diploma in Environmental Management student Aleksei Baboshko said studying at SIT has opened his eyes to the many opportunities life has to offer. Aleksei studied environmental protection for six years in Russia and received his Master’s degree in 2003 before working as a research assistant for eight years in the Laboratory of Geoecology in one of the regional institutions of Russian Academy of Science. He then worked as an environmental consultant/engineer focusing on Environmental Impact Assessment (EIA) and compliance for heavy industries including mining and oil production. Aleksei said deciding to study at SIT was a fairly easy choice, with a course available in Renewable Energy and Energy Auditing at a reasonable price and timeframe, plus the additional benefit of living in one of the earth’s most beautiful and safe places. He said studying at SIT has changed the way he thinks. “Firstly, it turned the way I was thinking of the environment from a mechanistic approach to a wider systems views.

Mai Chen with student Sophie Xiao

“I’ve learned to abstract from the details and view with a wider angle thus having a more holistic understanding of the natural processes,” he said.

SIT was pleased to host an evening with Mai Chen one of New Zealand’s most influential public law specialists. Mai spoke to members of the community and international students outlining her immigration experience as a young child from Taiwan to New Zealand and how she has paved her way to becoming one of New Zealand’s most highly respected lawyers.

“Secondly, SIT offered great opportunities for networking, making contacts within the industry, get first-hand experience in the real world.” He said the graduate diploma programme at SIT had a welldesigned research paper that helped to obtain academic skills and navigated students through an academic research process in a stress-free fashion. Aleksei enjoyed living in Invercargill and said if you were active and curious the city did not disappoint.

Graduate Diploma in Environmental Management student Aleksei Baboshko pictured at Kepler Track above the treeline in proximity of the Luxmore Hut.

Mai is a partner in Chen Palmer Law which has won numerous law and employment law awards. Mai is the inaugural Chair of New Zealand Global Women. She founded New Zealand Asian Leaders, connecting top Asian NZ CEOs and emerging leaders with New Zealand companies doing business in Asia to enhance their success to help NZ Inc. Mai has won a number of significant awards such as the Business and Entrepreneur Women of Influence Award in 2013. Mai has a First Class Law Honours degree from Otago University, a Master’s degree from Harvard Law School, is a Fellow of the New Zealand Institute of Management, and an Honorary Associate of Auckland University of Technology. Her message to international students was clear; in order to become successful in New Zealand you must practise your English and become a fluent communicator – without this you would not be able to succeed. Mai advised the students to study hard and make the most of the opportunities afforded to them by SIT. Mai praised SIT Chief Executive Penny Simmonds and International Head of Department Bharat Guha for the way they care for international students saying “You are very lucky, here at SIT they look after you and you are special.” Annual Report 2015 |

Community, Industry, Business Industry Advisory Committees and Chairpersons SIT values the strategic advice, feedback and support from industry advisory members, on qualifications offered by teaching sections within faculties. Advisory committee meetings provide a forum for strategic discussions between advisory committee members, SIT teaching staff and management to assist the institute to provide education and training that is current, relevant and of an appropriate industry standard. Advisory committee members assist in assessing labour market requirements, identifying and advising on the establishment and maintenance of appropriate programmes, and providing assistance and advice on work experience and internships for students participating in programmes relevant to their area of expertise.

Health, Humanities and Computing

New Media, Arts and Business

Advisory Committee

Chairperson

Company

Environmental Management

Richard Bowman

Environment Southland

Information Technology

Ian Edwards

Code Blue

Kawa Whakaruruhau Roopu

Tania Rewi

Southern District Health Board

Advisory Committee

Chairperson

Company

Hospitality

Scott Richardson

Otago/Southland Executive Member of the NZ Chef Association and Catering & Hospitality Teacher at Southland Boysâ&#x20AC;&#x2122; High School

Design & Visual Arts

Brent Knight

McCulloch Architects

Digital Media

K J Jennings

Film Otago/ Southland

Massage & Natural Margaret Walker Therapy

Naturopath

Mental Health

Marg Poulgrain

Te Kotuku

Nanny

Rose Cardoso

Best Start

Fashion

Phil Morrison

SIT

Nursing

Natasha Cunningham

Rowena Jackson Retirement Village

Music, Audio Production & Dramatic Arts

Trevor Daley

Trevor Daley Music Works

Social Services

Dawn Lloyd

Family Works

Business

Dave Rohan

Sport & Recreation

Vanessa Hughey

Sport Southland

Business Consultant

Business Consultative Group

Craig Smith

French Burt Partners

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COMMUNITY, INDUSTRY, BUSINESS

SIT2LRN Advisory Committee

Chairperson

Company

Creative Media

Teri McClelland

SIT

Trades & Applied Sciences

Stephen West

Environment Southland

Health & Humanities

Matt Sillars

Sport Southland

Business

Teri McClelland

SIT

Trades and Technology Advisory Committee

Chairperson

Company

Architectural Technology

Craig Hayward

Designbase Ltd

Automotive

Douglas Rodgers

SIT

Beauty Therapy

Fiona Forrest

SIT

Business Administration

Terry Egerton

SIT

Construction

Glenys McKenzie

Southern Group Training Trust

Electrical

Douglas Rodgers

SIT

Engineering

Noel Clayton

Competenz

Hairdressing

Richelle Holland

Les Sheikh

Industry Centre including NZDE

Michael Weusten

Acumen Applied Ltd

Joinery

Douglas Rodgers

SIT

Plumbing

Douglas Rodgers

SIT

Travel and Tourism

Fiona Forrest

SIT

Transport and Logistics

Douglas Rodgers

SIT

Veterinary Nursing

Brian Mason

Retired Veterinarian

Annual Report 2015 |

COMMUNITY, INDUSTRY, BUSINESS

SIT Chief Executive Penny Simmonds Finalist in Women of Influence Awards Chief Executive Penny Simmonds considers being a finalist in the Fairfax Media and Westpac 2015 Women of Influence Awards Board and Management category a recognition of SIT’s contribution to the community and to its students.

SIT Council Chair Sarah Brown said that Ms Simmonds’ outstanding vision, leadership, innovation and energy during her stewardship as CE have been the driving force behind SIT’s exceptional growth, development and success over the past eighteen years. During this time SIT has grown from a small regional polytechnic to a significant institute of technology delivering programmes up to postgraduate level and recognised nationally and internationally. The Fairfax Media and Westpac criteria for the Women of Influence programme highlights the important contribution women make in creating a bold and diverse future for New Zealand and the impact they make well beyond their formal roles and titles at local, regional and national levels. Other finalists in the category were: Helen Anderson, Chair-Fulbright NZ Christine Coppell, NZ Development Manager-Shell Jo Coughlan, Director-Silvereye Communications Ltd Karen Fifield, CE-Wellington Zoo Pip Greenwood, Partner-Russell McVeagh Lynda Hagen, Executive Director-NZ Law Foundation Barbara Kendall, Member from NZ-International Olympic Committee Sue Suckling, Independent Director and Chair-HSR Governance Karyn Thompson, Chief Human Resource Officer (Army) and Chair NZDF Development Steering Group

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COMMUNITY, INDUSTRY, BUSINESS

“Employer of the Year Award” for SIT Leads to Attendance at Gallipoli Commemorations

SIT Supports Community Charities through Town vs Country Fundraiser

SIT was awarded “Employer of the Year” by the Territorial Forces Employer Support Council in May this year. The award was presented at a special ceremony at Parliament and recognised SIT as an employer who contributes to the New Zealand Defence Force by supporting staff serving as reservists. The ceremony was attended by SIT Chief Executive Penny Simmonds and Nursing Academic and Relationship Leader Sally Dobbs who is a Major in the Royal New Zealand Nursing Corps.

For the second year running SIT provided a house for tender which was built by Certificate in Construction students to support a major charity event. This fundraiser benefitted the Gore Women’s Refuge, Lakes District Air Rescue Trust, Hospice Southland, SPCA and ILT Stadium Southland.

As part of the award two representatives from SIT, Sally and Deputy Chief Executive Academic Maree Howden were flown to Chunuk Bair on a New Zealand Air Force Boeing 757, for the 100 year NZ commemorative service in August. Highlights for both Maree and Sally included touring the Gallipoli historical sites, visits to cemeteries at Embarkation Point, Quinn’s Post, Hill 60, and the landing site at Anzac Cove for the allied invasion of Gallipoli Peninsula, and meeting army historians and dignitaries including Corporal Willy Apiata VC (Retired).

“This experience has been so instructive for making sure that history is captured and lessons learned…….such as the importance of democracy, of creating an educated society that can question, of having the deepest respect for what our forefathers experienced, the appalling discomfort they endured, the meaning of hardship and the importance of camaraderie in the face of hardship, and never forgetting what our soldiers, with the best of intentions, did for our country.” Deputy CE Academic Maree Howden

The event attracted the region’s best entertainers, sporting stars and personalities from local radio stations and businesses who battled it out on stage in a raft of exciting challenges designed to answer the question “Who is top dog, Town or Country?”. SIT staff were pleased to be able to support the event with the 3 bedroom, 2 bathroom family home at cost complete with kitchen and bathrooms, a deck, plumbing, carpets, drapes, heat pump, spouting and drain pipes and transport to buyers section. The house was valued at $130,000 and sold prior for $188,000. Profits from the sale were divided evenly between the charities. This is the second year SIT have utilised one of their homes to help the community. Last year they helped with the redevelopment of one of the ten worst sections in Invercargill with another Certificate in Construction house, revitalising the neighbourhood.

NZDF Reservist /SIT Nursing School Academic and Relationship Manager Sally Dobbs and SIT Deputy Chief Executive Academic Maree Howden at ANZAC Cove Gallipoli

Annual Report 2015 |

COMMUNITY, INDUSTRY, BUSINESS

Industry Partnership with Blue River Dairy to Enhance Opportunities for International Students

Shortage of Southland Skilled Truck Drivers Leads to New Collaboration with Transport Operators

The relationship between SIT and the Blue River Dairy company was enhanced when both parties signed a memorandum of agreement to further cooperate in areas of mutual benefit in 2015. The sale of the Blue River Dairy processing plant to Chinese company Blueriver Nutrition HK last year provided the opening for new developments in the Invercargill factory, expanded business opportunities in Southland and also opportunities for SIT.

The SIT Transport and Logistics Training Hub will offer specialised training and qualifications for students to develop professional skills for driving trucks in a real world setting. This facility is intended to become the focal point for a range of programmes and events aimed at promoting careers in the road transport industry.

Chief Executive Penny Simmonds said that alongside planned cooperation between the two parties in areas such as food nutrition and production research, there were also plans for graduate employment, internships and cultural experiences for international students. Blue River Dairy is a successful Southland company with a range of unique products which extend from the original sheep milk feta cheese products to a number of new award winning cheeses, ice cream and milk powder. The company has expanded from producing about 1000 tonnes of sheep milk powder annually to 5000 tonnes and the new Chinese owners have plans for substantial investments to generate new product development and business in the Invercargill factory.

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The Hub was established after SIT was approached by local companies to develop a road transport programme because transport operators recognised the need to develop a longterm supply of skilled labour to address the shortage of truck drivers and the ageing workforce issue in Southland. An industry wide meeting attended by representatives of HW Richardson Group, McNeill Distribution, Road Transport Logistics, Fonterra, Scullyâ&#x20AC;&#x2122;s Transport, as well as NZ Trucking Association, the Road Transport Association and the Motor Industry Training Organisation (MITO), was hugely supportive of the Transport & Logistics Training Hub concept. As well as getting started on their truck licences in the training programme, students will do a large chunk of work experience to help them gain skills and connections in the transport industry. The success of this programme and the training model used to deliver it has been proved over many years in other parts of New Zealand and SIT will deliver this course within a distinctly Southern context.

COMMUNITY, INDUSTRY, BUSINESS

Sports Relationships Forge Wider Community Benefits

Contemporary Music Students Hit the Right Notes in the Community

The successful relationship between SIT and the Appleby Cricket Club illustrates the wider two-way benefits gained through linking international students to clubs, activities and events in the community.

Year One SIT Bachelor of Contemporary Music students took their music to the community when they entertained approximately 2,500 primary school students, pre-schoolers and the public during 11 fun-filled concerts within just four days.

In mid-2015 SIT was approached by the Appleby Cricket Club in Invercargill about forming a joint team to play in the Southland Combined Country Competition, because while the institute had a number of enthusiastic cricket players, they did not have a team to play in. Forming a cricket team is a big undertaking and requires a lot of organisation, equipment, knowledge and facilities and the Appleby Cricket Club was pleased to provide this in a joint project with the SIT team. Appleby Club organiser Scott Donaldson said the wonderful thing about the relationship between SIT and Appleby Cricket Club was that international students who were new to New Zealand were able to make a connection to a local institution and people. “Appleby has benefited a lot in that we have a whole new breed of players, many of whom want to make their home in Invercargill. “We’ve also benefited a lot from their enthusiasm and new ideas,” he said. Scott said the Appleby Club management team believed the SIT/Appleby relationship was a great example of what needed to happen between Invercargill people and the students in the coming years.

The concerts, now in their 13th year, were held at Centre Stage theatre and were very successful with children joining in the performances and singing and dancing in the aisles said SIT Bachelor of Contemporary Music Academic Leader and concert organiser Sally Bodkin-Allen. “Highlights of the concerts this year were the performances of “The Cup Song” from Pitch Perfect, which was sung in English and Te Reo Maori, and “All About That Bass”, “Everything is Awesome” from The Lego Movie and of course “Let It Go” from Frozen was a highlight with all the girls.” Bachelor of Contemporary Music first year student Andrea Jones was lead and backing vocalist for a variety of songs and said that all audiences found the concerts engaging and the performances very energetic. Sally said the best thing about the concerts was all the opportunities for the children to perform through dancing and singing along with the students. “It’s a great experience for the children, to see live music performance, and also for the SIT students, who love the enthusiasm of the children,” said Sally.

“Invercargill people and institutions need to find ways of opening their doors to the international students, because the fact is, we need them if Invercargill is to have a future.”

Annual Report 2015 |

Staff Highlights Staff Training and Development The Academic Support Unit (ASU) co-ordinates professional development activities for tutorial and allied staff at SIT. Training opportunities for 2015: ªª The annual staff training programme was delivered over a two week period at the beginning of the academic year and included a wide range of topics including teaching and learning, information technology related and communication. This year saw the inclusion for the first time of a Pasifika Cultural Competency workshop. The feedback received for the sessions was highly favourable and an increase in attendance at many of the nonmandatory sessions was noted. ªª An additional staff training programme was held in July for those staff who were not able to attend the February sessions. ªª New tutor workshops were held throughout the year in block courses. The workshops provide an introduction for new tutors to foundation classroom skills and academic quality requirements. ªª This year we were privileged to bring four Ako Aotearoa best practice workshops to Invercargill for SIT staff. The topics varied and covered a range from evaluation to working with at risk students. These were well attended and received very positive feedback from attendees.

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ªª Managers and Team Leaders training day, an annual event, was held in August. This training provides middle managers with the opportunity to network with other managers and to obtain information and strategies to support them in their roles. This year our focus was on Self-Assessment. ªª We had a number of staff undertaking the National Certificate in Adult Literacy and Numeracy Education qualification, which is delivered through the ASU. All staff who have completed the qualification have commented on the value they have found in the improvement of their own teaching strategies with students benefitting from this. ªª Observation of teaching is an important professional development activity undertaken with all full time tutorial staff by the ASU unit staff. The objective is to improve teaching practices, student engagement and student performance. This exercise fosters professional growth and provides benefits such as sharing teaching techniques and philosophies.

STAFF HIGHLIGHTS

Donna Bowman Receives SIT’s Inaugural Excellence in Teaching Award

First recipient of the SIT Excellence in Tertiary Teaching Award hairdressing tutor Donna Bowman is well respected amongst her colleagues, students and members of the industry. Donna said she was honoured and humbled to have gained the award, which was open to all permanent teaching staff and SIT2LRN facilitators who have taught/facilitated at SIT for a minimum of two years. The award criteria may include some or all of the following:

Karen Sutherland Wins SIT’s Inaugural Excellence in Allied Service Award Administration Manager Karen Sutherland who won the 2015 Excellence in Allied Service Award has been working at SIT for approximately 10 years in a variety of positions and is well respected amongst her peers. Karen’s role encompasses responsibility for the student management system, enrolment, administration and reception. With a customer service-based background Karen says she is happiest when interacting with people. Karen was nominated for the award which was open to all permanent allied staff employed at SIT for a minimum of two years. The award recognises: ªª Customer service ªª Team involvement/participation ªª Innovation ªª Efficiency

ªª Philosophy of teaching

ªª Effectiveness

ªª Innovative use of technology

ªª Making a difference

ªª Alignment with Industry

ªª Above and beyond – work ethic

ªª Professional development in teaching

ªª Professionalism

ªª Facilitating learning

Karen has always enjoyed working at SIT and said it has grown significantly since she started.

ªª Programme development/re-development ªª Innovation in teaching ªª Assessment and moderation ªª Reflective practice in teaching ªª Research outputs (degree teaching staff only) ªª Literacy and numeracy embedding and expertise (for those teaching in NZQA Levels 1-3) Donna’s whole working life has been conducted within the hairdressing field, beginning her teaching career part-time in 1978 when SIT was known as Southland Community College. Donna then became a full time tutor and in 1995 Programme Manager, however changes in 2013 bought her back to full time tutoring.

“The international component wasn’t nearly as large as it is now.” Although a lot has changed over the years, Karen said the management side of the business has always stayed the same. Karen also made special mention of her team, who she said are fantastic. “It’s so lovely to have my efforts recognised, but truly none of this could be accomplished without the wonderful staff I have the privilege of working with every day.” “I would like to thank staff, management and council for this amazing award.”

What inspires Donna is a genuine love of passing on knowledge and skills to the next generation of budding hairdressers. She feels it is a privilege to be a part of her students’ journey and especially loves when they have found the perfect salon to continue their apprenticeship. Donna also enjoys supporting new tutors, sharing ideas and continually trying new things to improve her own delivery and assessment practices. “I have learnt a lot from many of my peers here at SIT over the years and value the ideas I gain from TDSU via short presentations or through my teaching observations,” says Donna. “I have also gained lots of ideas from my hairdressing and beauty therapy colleagues around New Zealand when we meet for the ITP Hairdressing and Beauty Therapy forum meeting and the educators’ conference each year.” Annual Report 2015 |

STAFF HIGHLIGHTS

Head of Faculty Presents E-learning Strategies to World Education Leaders

Kathryn McCully Winner of 2015 ILT Art Award

Kathryn McCully 2015 ILT Art Award winner Photograph – Aleisha Toomey

SIT Programme Manager for Visual Arts, Film and Animation Kathryn McCully won the overall grand prize at the 2015 ILT Art Awards in August. Kathryn said she was thrilled to win the award and said it felt like an acknowledgement of all the hard work and risk-taking associated with working on a new project.

Head of Faculty for SIT2LRN Teri McClelland presented SIT’s innovative delivery models for vocational programmes at the World Technical Vocational Education and Training (TVET) conference in Sarawak Malaysia in August. Teri highlighted the innovation SIT has developed to move with technology and continue to build a broad portfolio of programmes available for students through eLearning. SIT introduced SIT2LRN distance learning in 2003 and this has evolved to now deliver approximately forty programmes online worldwide as well as STAR taster programmes to students in partnership with high schools across New Zealand. The conference attracted education leaders from tertiary institutions and organisations around the glove. Malaysian dignitaries such as the Yang di-Pertua Negri (Governor) of Sarawak, the Honourable Sarawak State Secretary, and the Right Honourable Chief Minister of Sarawak also attended the event. The conference concluded with a panel session considering the future of TVET with Teri being one of the panellists.

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Kathryn’s animation ‘a southland museum’ focuses on the democratization of the public museum experience proposing the potential of multiple museums that tell the stories of communities from a variety of perspectives. She utilised collections of photographs taken over the past three years around Invercargill and Southland as the stage on or backdrop against which various actions are performed. The static photographs are composited and animated to create new relationships. “a southland museum” prioritises the process and place of art making in the construction of meaning. Art is created in a place, a time and in a community to which it is inherently connected. This is in contrast to the contemporary experience of art in a museum environment where there is a tendency to privilege the artwork as an object separate from everyday life. “a southland museum” was influenced by Kevin McDonald’s feature Life in a Day which crowd-sourced video content to create a snapshot of a day in the life of people all over the world. Life in a Day comprises an arranged series of video clips selected from 80,000 clips submitted to the YouTube video sharing website, showing respective occurrences from around the world on a single day, July 24, 2010.

STAFF HIGHLIGHTS

Challenging Role as Editor for Tune Me In National Publication

Staff Develop New Masters Programmes with Industry Support

One of music staff member Sally Bodkin-Allen’s research activities for 2015 has been the editing of the Tune Me In magazine. This is the national publication of MENZA (Music Education New Zealand Aotearoa) which provides a selection of articles, reviews, teaching ideas and news stories to music educators throughout New Zealand. The role of editor is a busy and challenging one…“I am always looking to have a balance of articles across all sectors of education,” said Sally. “The articles need to be of interest to early childhood educators, right through to tertiary level music lecturers.”

Throughout 2015 staff developed and received approval and accreditation from the New Zealand Qualifications Authority to deliver 16 programmes, all of which were backed by significant regional and national industry support.

MENZA also offers the opportunity for SIT staff to publish in the magazine, and to promote the programmes and activities of students on the contemporary music programme. “There have been many articles written by SIT music staff, and in 2015 our contemporary music students’ performances at the Kids’ Concerts and also at the Invercargill City Council Library were featured in the magazine.” Contributors to the magazine come from as far afield as Australia, and it is distributed nationally to libraries and all MENZA members.

Receiving approval and accreditation for two Master’s programmes was a considerable achievement for SIT as a regional institute of technology, and the first time a Southland education provider has been awarded Level 9 programmes by NZQA. The Advisory Committees involved in the application were very supportive throughout the duration of the application process and delighted at the successful outcome. ªª Master of Applied Management ªª Postgraduate Diploma in Applied Management ªª Postgraduate Certificate in Applied Management ªª Master of Information Technology ªª Bachelor of Screen Arts ªª Graduate Diploma in Screen Arts (3D Animation) ªª Graduate Diploma in Screen Arts (Film Making)

ªª New Zealand Diploma in Agribusiness Management Level 5 Sally Bodkin-Allen ªª Consent to Assess in Subfield Agriculture to Level 6 Editor of Tune Me In ªª New Zealand Diploma in Business Level 6 ªª New Zealand Diploma in Business Level 5 ªª New Zealand Certificate in Cookery Level 4 ªª New Zealand Certificate in Cookery Level 3 ªª New Zealand Certificate in Food and Beverage Service Level 3 ªª Certificate in Commercial Road Transport ªª National Certificate in Goods Service (Heavy Vehicle Driver) with strands in Heavy Rigid Vehicle, and Heavy Combination Vehicle

Annual Report 2015 |

STAFF HIGHLIGHTS

Staff Research 2015

SIT Research Symposium On 30 November 2015 teaching staff at SIT presented their research at the annual Staff Research Symposium. In an interesting and varied agenda, staff shared their research with their colleagues. The day was spilt into three sessions, with staff presenting from across three faculties: Health, Humanities and Computing, New Media Arts and Business and SIT2LRN. ‘This is an important annual event at SIT offering a great opportunity for staff to share their research with their colleagues,’ said Research Manager Dr Sally Bodkin-Allen. ‘There was a fascinating range of projects presented and plenty of opportunities for discussion.’ Staff are able to draw on the results of their research in their teaching and to ensure that they keep abreast of new ideas in their fields. The symposium provides an opportunity for staff to learn about a wide range of research findings and to share work in progress with an engaged and supportive audience. The agenda this year included the presentation of results from experimental research in the areas of sports and exercise, a discussion of autoethnographical research methodology being used by staff teaching through innovative nursing education based on simulation, and analyses of issues as diverse as corporate governance, conservation management of dolphins, hydro-electricity and cybercrime. The audience was able to view original screen productions, to learn about heavy metal music in Southland and the findings of a study of student withdrawals from online foundation studies. At the end of the day audience members voted for the ‘People’s Choice Award’ for their favourite presentation of the day. ‘Once again the voting was very close, reflecting the quality of research and the effort people had put into their presentations,’ Sally said. ‘The award went to Andrea Knowler from the School of Nursing with her presentation “Mask-Ed, Pup-Ed, and simulators down under – an autoethnographic study”.’ Andrea and a group of nursing tutors implemented masks this year to create a more realistic learning environment for their students. Andrea said SIT had been very supportive of introduction Mask Ed into the course framework and the Research Symposium was a great opportunity to showcase the initiative to her peers.

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ITP Sector Collaboration Practices: Joint Research Project between SIT and New Zealand Institutes of Technology and Polytechnics Collaborative ways of working are regarded as beneficial for the tertiary sector, and the government expects Institutes of Technology and Polytechnics (ITPs) to work with each other and with other key stakeholders. This year saw the completion of a major research project examining how some of New Zealand’s regional ITPs collaborate to enhance teaching and learning, share knowledge and increase efficiency. The ITP Sector Collaboration Practices Project was a joint research project by NZITP and Southern Institute of Technology. The key purpose of the project was to evaluate what made for successful collaborations that brought mutual benefits to partners, with a particular focus on relationships between ITPs. It explored the ways in which ITPs collaborate with each-other, as well as with other stakeholders, to enhance the quality of teaching and learning, share knowledge and stimulate creativity, and increase efficiency in the use of resources. Research Institute staff members Dr Sally BodkinAllen and Dr Jo Whittle worked with Learning Support Officer Dr Jerry Hoffman to carry out the research project. The final report has been featured on the website of the Ako Aotearoa National Centre for Tertiary Teaching Excellence. ‘Collaboration with external stakeholders is an integral part of the way that ITPs do business,’ says Sally, who led the research project. ‘People working in these institutes have a great deal of collective experience about what makes for successful collaboration, and our objective with this project was to collect and share those experiences.’ The report combines data from questionnaires and interviews involving a wide variety of staff in academic, support and management roles at nine ITPs around New Zealand. It offers lessons for what makes collaborations successful, how to manage collaborative processes, and how to avoid some of the common challenges.

STAFF HIGHLIGHTS

Staff Research Outputs 2015 Published papers and articles Belton, P. (2015). Arthur Dove’s blackbird. Landfall, 229, 78. Bodkin-Allen, S. (2015, April). The APO Summer School, Tune Me In, 10 (1), 21. Bodkin-Allen, S. (2015 July). From the Invercargill March to William Tell: ideas for using instrumental music in early childhood. Tune Me In, 10 (2), 22-23. Finno, C.J., Stevens, C., Young, A., Affolter, V., Joshi, N.A., Ramsay, S. & Bannasch, D. (2015). SERPINB11 frameshift variant associated with novel hoof specific phenotype in Connemara ponies. PLOS Genetics, 11(4), 1-17 doi:10.1371/ journal.pgen.1005122. Fisher, J. & van Niekerk, E. (2015). GIS food shed mapping: a planning tool for Invercargill. In H. Longman (Ed.) Special edition 2015: an exposition of staffstudent research projects 2012 – 2014, Southern Institute of Technology Journal of Applied Research, 5-9. Retrieved from https://www.sit.ac.nz/ SITJAR#3101190-specialedition-2015-an-expositionof-staff- student-researchprojects-2012--2014 Heath, D. (2015). Heavy metal from the Antarctic ends of the earth: Investigating the metal music identity from Invercargill, Southland, New Zealand. In T. Karjalainen & K. Kärki (Eds.) Proceedings of the Modern Heavy Metal: Markets, Practices and Cultures International Academic Research Conference 2015. Retrieved from http://iipc.utu.fi/ MHM/Heath.pdf

Laverty, L. & McKenzie, D. (2015). Perceptions and patterns of physical activity amongst Southland women during pregnancy. In H. Longman (Ed.) Special edition 2015: an exposition of staff-student research projects 2012 – 2014, Southern Institute of Technology Journal of Applied Research, 1014. Retrieved from https://www. sit.ac.nz/SITJAR#3101190-specialedition-2015-an-expositionof-staff- student-researchprojects-2012--2014 McCully, K. (2015). Under the spell. Landfall, 230, 189-191. McMillan, M. (2015, May/June). Nurses: Champions for change. Head2Head – Magazine of the NZNO Mental Health Nurses Section, 28, 4. McMillan, M. (2015, May/June). Clinical college of NZNO mental health nursing logo. Head2Head – Magazine of the NZNO Mental Health Nurses Section, 28, 6. McMillan, M. (2015, May/June). Nurses: NZNO mental health nurses section AGM & education forum. Head2Head – Magazine of the NZNO Mental Health Nurses Section, 28, 7-8.

National Advisory Committee on Computing Qualifications, 7479. Queenstown, New Zealand. Retrieved from http://www. citrenz.ac.nz/2015-proceedings/ Paul, Y. & Pienaar, H. (2015). Strategies to encourage Maori to “aukati kai paipa” (quit smoking). In H. Longman (Ed.) Special edition 2015: an exposition of staffstudent research projects 2012 – 2014, Southern Institute of Technology Journal of Applied Research, 19-25. Retrieved from https://www.sit.ac.nz/ SITJAR#3101190-specialedition-2015-an-expositionof-staff- student-researchprojects-2012--2014 Rhodes, J. (2015). Using PeerWise in nursing education-a replicated quantitative descriptive research study. Kai Tiaki Nursing Research, 6, 10-15. Rhodes, J. (2015, March). Advancing clinical emergency care – offering postgraduate educational opportunities in the south. Emergency Nurse New Zealand, 6-7. Rhodes, J., & Reid-Searl, K. (2015). Masked tutor brings patient to ‘life’. Kai Tiaki Nursing New Zealand, 21, 14-15.

Mumford, J. (2015). Teaching and learning perspectives on numbers systems within a first year tertiary IT course. In M. Verhaart, A. Sarkar, R. Tomlinson & E. Erturk (Eds). 6th Annual Conference of Computing and Information Technology Research and Education New Zealand (CITRENZ2015) and the 28th Annual Conference of the Annual Report 2015 |

STAFF HIGHLIGHTS

Roberts, D. & Wolfe, H.B. (2015). Cybercrime concerns and readiness for New Zealand businesses 2014-2015. In M. Verhaart, A. Sarkar, R. Tomlinson & E. Erturk (Eds). 6th Annual Conference of Computing and Information Technology Research and Education New Zealand (CITRENZ2015) and the 28th Annual Conference of the National Advisory Committee on Computing Qualifications, 8893. Queenstown, New Zealand. Retrieved from http://www. citrenz.ac.nz/2015-proceedings/ Schares, A. & Bodkin-Allen, S. (2015). Singing together: Guidelines for setting up a community choir. In H. Longman (Ed.) Special edition 2015: an exposition of staff-student research projects 2012 – 2014, Southern Institute of Technology Journal of Applied Research, 15-18. Retrieved from https://www.sit.ac.nz/ SITJAR#3101190-specialedition-2015-an-expositionof-staff- student-researchprojects-2012--2014 Smith, J. (2015, First Quarter). Massage therapy research update. Massage New Zealand Magazine (April 2015). Smith, J. (2015, Second Quarter). Massage therapy research update. Massage New Zealand Magazine (June 2015). Smith, J. (2015, Third Quarter). Massage therapy research update. Massage New Zealand Magazine (September 2015). Smith, J. & Smith, D. (2015, Fourth Quarter). Massage therapy research update. Massage New Zealand Magazine (December 2015). Woodward, L. & Tan, L. M. (2015). Small business owners’ attitudes toward GST compliance: a preliminary study. Australian Tax Forum, 30 (3), 517-549.

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Edited publications Bodkin-Allen, S. (Ed.). (2015, April). Tune Me In, 10 (1). Bodkin-Allen, S. (Ed.). (2015, July). Tune Me In, 10 (2). Bodkin-Allen, S. (Ed.). (2015, November). Tune Me In, 10 (3). Hoffman, J. (Ed). (2015). National Tertiary Learning and Teaching Conference 2014 proceedings (special edition, Southern Institute of Technology Journal of Applied Research). Retrieved from https://www.sit.ac.nz/ SITJAR#3101148-2014-nationaltertiary-teaching-and- learningconference-special-edition Longman, H. (Ed.) (2015). Special edition 2015: an exposition of staff-student research projects 2012 – 2014, Southern Institute of Technology Journal of Applied Research. Retrieved from https:// www.sit.ac.nz/SITJAR#3101190special-edition-2015-anexposition-of-staff- studentresearch-projects-2012--2014 McMillan, M. (Ed.). (2015, May/June). Head2Head – Magazine of the NZNO Mental Health Nurses Section, 28.

Books and reports Daniels, P., Ramsay, W. R. H., & Daniels, C. (2015). New research into the potteries of West Cumberland following the discovery of a Whitehaven creamware ship bowl inscribed success to the Mary and Betty/Captain Joseph Benn. Oxford, United Kingdom: Resurgat Publishing.

Heath, D. (2015). Acoustical consultation (Beattie McDowell Architects Ltd): Salvation Army Hall Redevelopment Project. Invercargill, New Zealand. Heath, D. (2015). Acoustical consultation (A. Panet Resource Consent Application): theoretical assessment of sound prediction measurements for proposed event venue. Invercargill, New Zealand. Ramsay, W. R. H., Daniels, P., & Ramsay, E. G. (2015). Are ‘Limehouse’ porcelains in fact all Limehouse? Evidence from archaeology, science, and historical documents. Oxford, United Kingdom: Resurgat Publishing. Whittle, J., & Bodkin-Allen, S. (2015). Southern Institute of Technology: research report 2014. Southern Institute of Technology. Invercargill, New Zealand. Whittle, J., Bodkin-Allen, S., & Hoffman, J. (2015). ITP sector collaboration practices project. Invercargill, New Zealand: Southern Institute of Technology Research Institute. Retrieved from https://www.sit. ac.nz/Reports-Publications

Exhibitions McCully, K. (2015). a southland museum. Invercargill, New Zealand: ILT Art Awards, 1 August - 4 September. McCully, K. (2015). a southland museum. Invercargill, New Zealand: Windsor North School Art Sale and Exhibition, 7 - 8 Nov 2015. Miles, K. (2015). Island. Dunedin, New Zealand: Alternative Space Gallery, Webb Farry Lawyers, 2 February - 28 April. Myers, R. (2015). The subject is in her house. Dunedin, New Zealand: Dunedin Public Art Gallery, 6 November - 13 December.

STAFF HIGHLIGHTS

Performance Sagmyr, J. [Technical director]. (2015). Selah Singer Songwriter Concert. Invercargill, New Zealand. Skerrett, P. [Musical director]. (2015). ILT Christmas Variety Show. Invercargill, New Zealand.

Creative outputs Belton, P. (2015). Poetry by Peter Belton. Retrieved from http://www. poetlaureate.org.nz/2015/05/ peter-belton.html Bodkin-Allen, S. (2015). Meadow’s lullaby for cornet and piano [Musical composition]. Retrieved from http://sounz.org.nz/ Bodkin-Allen, S. (2015). The bickering sisters, duet for 2 cornets and piano [Musical composition]. Retrieved from http://sounz.org. nz/ Bodkin-Allen, S. (2015). Hooray for the man who has everything for tenor saxophone and piano [Musical composition]. Retrieved from http://sounz.org.nz/ Mann, R. & McCully, K. (2015). Gilt complex. [Short film]. Rialto Channel 48 Hours Film Competition Entry. Mann, R. (2015). Slight. [Short film]. Tropfest New Zealand Film Entry.

Conference presentations Anderson, D. (2015). Mental health nurses’ views on the physical health of people with mental illnesses. Presentation at Te Ao Maramatanga College of Mental Health Nurses Conference, Te Papa Museum, Wellington, New Zealand. Bodkin-Allen, S. (2015). Classical music for early childhood. Workshop presented at the MENZA Hook into Sound Professional Development Day, Invercargill. Bodkin-Allen, S. & Carson, T. (2015). Sing with your hands with hook, line and singalong songs. Workshop presented at “Making Music Matter”, the TRCC MENZA Conference, Auckland, New Zealand. Bodkin-Allen, S. (2015). Bringing classical music into the early childhood centre. Workshop presented at “Making Music Matter”, the TRCC MENZA Conference, Auckland, New Zealand. Bodkin-Allen, S. (2015). Mixing it up: student engagement in the School of Music at SIT. Presentation at “Surfing the Zeitgeist”- Australia New Zealand Research in Music Education (ANZARME) Conference, Melbourne, Australia. Botafogo, F. (2015). Double-entry bookkeeping: the introductory lecture. Presentation at the Whitireia / Weltec Research Symposium, Te Kura Matatini o Whitireia, Porirua, New Zealand. Dobbs, S. (2015). Caring for the nursing student or caring for the public: a Heideggerian phenomenological study into the clinical nurse educators’ dilemma of failing nursing students in clinical practice. Presentation at the International Council of Nurses Conference, Seoul, Korea.

Heath, D. (2015). Heavy metal from the Antarctic ends of the earth: investigating the metal music identity from Invercargill, Southland, New Zealand. Presentation at Modern Heavy Metal: Markets, Practices and Cultures International Academic Research Conference, in Helsinki, Finland. McClelland, T. (2015). Delivering TVET qualifications in an online environment. Presentation at the World TVET Conference, Sarawak, Malaysia. McClelland, T. (2015). Quantum leap: transformation and globalisation of Technical Vocational Education and Training (TVET) – living skills in the 21st century. Invited Panellist, World TVET Conference, Sarawak, Malaysia. McCully, K. (2015, May). The value of not knowing. Presentation at the Museums Aotearoa Conference, Dunedin, New Zealand. Madden, K., Rhodes, J., McMillan, M., Knowler, A., & Strathearn, M. (2015). Mask-Ed, Pup-Ed, and simulators down under: an autoethnographic study. Presentation to New Zealand Perioperative Conference – Reflection and Action. Palmerston North, New Zealand. Mumford, J. (2015). Teaching and learning perspectives on numbers systems within a first year tertiary IT course. Presentation at the 6th Annual Conference of Computing and Information Technology Research and Education New Zealand (CITRENZ2015) and the 28th Annual Conference of the National Advisory Committee on Computing Qualifications, Queenstown, New Zealand.

Annual Report 2015 |

STAFF HIGHLIGHTS

Myers, R. (2015). Being made, performing disciplining bodies. Presentation at the Art & Performance Research Group, Auckland University of Technology, Auckland, New Zealand. Palliser, A. (2015). Comparing building adaptive capacity for natural resource management in two New Zealand marine protected areas. Presentation at the MARE Conference: People and the Sea VIII: Geopolitics of the Oceans, Amsterdam, Netherlands. Prinsloo, L. (2015). What influenced changes to enrolled nursing in New Zealand. Presentation at “Love the Skin You’re In”, NZNO Enrolled Nurse Conference, Wellington, New Zealand. Prinsloo, L. (2015). ENSIPP (Enrolled Nurse Supported Into Practice Programme) document discussion panel. Invited Panelist, “Love the Skin You’re In”, NZNO Enrolled Nurse Conference, Wellington, New Zealand. Rhodes, J. (2015). Learning is not a spectator sport: using board games and television shows to ignite learners’ senses. Poster presentation at the Australian Nurse Educators Conference – Being, Knowing, Caring. Auckland, New Zealand. Rhodes, J., Madden, K., Knowler, A., McMillan, M., & Strathearn, M. (2015). Mask-Ed, Pup-Ed, and simulators down under: an autoethnographic study. Presentation at the Australasian Nurse Educators Conference– Being, Knowing, Caring. Auckland, New Zealand.

Rhodes, J., McMillan, M., Knowler, A., Madden, K., & Strathearn, M. (2015). Mask-Ed, Pup-Ed, and simulators down under: an autoethnographic study. Presentation at the New Zealand Nurses Organisation (NZNO) Conference – Shaping our Healthcare. September, Wellington, New Zealand. Roberts, D. & Wolfe, H.B. (2015). Cybercrime concerns and readiness for New Zealand businesses 2014-2015. Presentation at the 6th Annual Conference of Computing and Information Technology Research and Education New Zealand (CITRENZ 2015) and the 28th Annual Conference of the National Advisory Committee on Computing Qualifications, Queenstown, New Zealand. Ramsay, W. R. H., and Ramsay, E. G. (2015). The evolution and technical development of the English porcelain tradition from the 16th century to Lund’s Bristol c. 1750 and early Worcester c. 1752 - the golden chain. Invited speaker, Royal Society, Kensington Town Hall, London, United Kingdom. Sagmyr, J. (2015). Songwriting technical skills. Presentation at the Selah Singer Songwriter Conference, Invercargill, New Zealand. Sagmyr, J. (2015). Instant coffee: songwriting on the go. Workshop presented at “Making Music Matter”, the TRCC MENZA Conference, Auckland, New Zealand. Skaria, R. (2015). Experiences of overseas nurse educators. Presentation at Australian Nurse Educators Conference – Being, Knowing, Caring. Auckland, New Zealand. Smith, J.M. (2015). An overview of recent research. Presentation at Massage New Zealand Conference, Tauranga, New Zealand.

| Annual Report 2015

Smith, J.M. (2015). Resources for helping massage therapists engage with current research. Presentation at Massage New Zealand Conference, Tauranga, New Zealand. Smith, J.M. (2015). Snapshots of 2014 New Zealand research studies. Presentation at Massage New Zealand Conference, Tauranga, New Zealand. Smith, D.M. & Smith, J.M. (2015). A conceptual model: stepping towards legitimation for massage therapists. Presentation at Massage New Zealand Conference, Tauranga, New Zealand. Smith, D.M. & Smith, J.M. (2015). Degree-based education for massage therapists: a survey of educators, therapists and students. Presentation at Massage New Zealand Conference, Tauranga, New Zealand. Smith, D.M. & Smith, J.M. (2015). So you want to be a health professional? Presentation at Massage New Zealand Conference, Tauranga, New Zealand. Woodward, L. (2015). Small business owners’ attitudes toward GST compliance: a preliminary study. Presentation to Australasian Tax Teachers Association Conference, Adelaide, Australia.

STAFF HIGHLIGHTS

Reviews McMillan, M. (2015, May/June). Violence is not part of our job – article review. Head2Head – Magazine of the NZNO Mental Health Nurses Section, 28, 9. Mitchell, K. (2014). An empty tent flapping in the wind. Landfall Review online: New Zealand books in review. Retrieved from http://www.landfallreview. com/2014/08/an-empty-tentflapping-in-wind.html

Public talks Bodkin-Allen, S. (2015). Everyone can sing! Pecha Kucha Presentation Southland Arts Festival. 1 May 2015, Little Theatre, Gore and 2 May 2015, Repertory House. Invercargill, New Zealand. Carstensen, C. (2015). Allergies: The experience of raising a child with severe allergies. Presentation to Southern DHB Research Forum: Nursing and Midwifery. Invercargill, New Zealand. Knowler, A. (2015). Introducing Pup Ed™ to the Children’s Ward. Presentation to Children’s Ward Study day. Invercargill, New Zealand. McCully, K. (2015). Performing the DIY Museum. Pecha Kucha Presentation Southland Arts Festival. 1 May 2015, Little Theatre, Gore and 2 May 2015, Repertory House. Invercargill, New Zealand.

McCully, K. (2015). A Southland museum. Public talk at ILT Art Awards. Southern Institute of Technology, Invercargill, New Zealand. Musika, F.A.A (2015). Club marketing strategies. Presentation at Invercargill Rotary Marketing Workshop. Invercargill Working Men’s Club, Invercargill, New Zealand. Musika, F.A.A. (2015). Self-Branding. Presentation at SouthAlive Youth Training Development Programme. Invercargill, New Zealand. Rhodes, J. (2015). Breaking down educational silos – nursing students and doctors learning and teaching together. Presentation to the Southland Staff Development Workshop – fostering passionate teaching & encouraging research. Southland Hospital, Invercargill, New Zealand. Strathearn, M. (2015). Men’s wellness, a proactive approach. Presentation to Male Mental Health Consumers. Invercargill, New Zealand.

Postgraduate Theses Anderson, D. (2015). Mental health nurses’ views on the physical health of people with mental illness. (Master’s thesis). Dobbs, S. (2015). When two worlds collide: a Heideggerian interpretive phenomenological study into the experience of assessing “failing” nursing students within clinical practice. (Doctoral thesis). Massey University, Palmerston North, New Zealand. Mann, R. (2015). Southern youth: Evoking southern teenage identify through character design for animation. (Master’s thesis). Massey University, Palmerston North, New Zealand. Palliser, A. (2015). Building adaptive capacity for natural resource management in Akaroa coastal environment, New Zealand. (Doctoral thesis). University of Otago, Dunedin, New Zealand. Prinsloo, L. (2015). What influenced changes to enrolled nursing in New Zealand? (Master’s thesis). Eastern Institute of Technology, Napier, New Zealand. Smith, D. (2015). Perceptions of degree based education for massage therapists. (Doctoral thesis). University of Otago, Dunedin, New Zealand.

McCully, K. (2015). Soft city: The animation of cultural scenes. Presentation at Pecha Kucha Innov8. Invercargill, New Zealand.

Annual Report 2015 |

STATEMENT OF SERVICE PERFORMANCE

Statement of Service Performance

| Annual Report 2015

STATEMENT OF SERVICE PERFORMANCE

Goal

Provide for and encourage student participation and achievement in a range of quality learning opportunities and services

Key Point of Focus ªª

Enhance academic achievement and satisfaction of stakeholders

ªª

Offer a range of programmes, staircasing opportunities and flexible delivery modes which provide vocational and life skills

ªª

Improve the representation and achievement of under-represented and disadvantaged groups

ªª

Output

Output measure

2014 Actual

2015 Target

2015 Actual

1.1

Improve course completion rates for all students

Percentage increase in course completion rates for all students

79%

77%

78%*

1.1

Improve qualification completion rates for all students

Percentage increase in qualification completion rates for all students

73%

71%

69%*

1.1

Maintain student satisfaction levels

Achievement of student satisfaction levels of an average of 84% (best rating) in annual survey of programmes of 0.25 EFTS

93%

≥84%

92%

1.1

Percentage of graduates gaining employment or progressing to further study

Percentage of graduates measured by annual Graduate Destination Survey

99%

≥ 84%

96%

1.1

Annual Programme Evaluation Reviews carried out on all programmes greater than 0.25 EFTS

Number of programmes greater than 0.25 EFTS analysed via Annual Programme Evaluation Reviews

100%

96%

100%

1.2

Respond to the need for more qualifications in Science, Technology, Engineering and Mathematics (STEM)

Number of new/ revised programmes in STEM

1.4

Maintain or increase hourly availability on 2014 level of student learning support services

Student support availability maintained or increased, including Library, Learning Assistance unit, Support Services

=2013

≥2014

=2014

1.4

Increase teaching capability by providing adult education training, professional development budget, mandatory compliance training and annual training week for staff

Certificate and Diploma 100% in Adult Education and Training available to all teaching staff, budget allows for professional development, mandatory training occurs, annual training week occurs

100%

Provide a range of student and staff support services

Note: All performance indicators relate directly to SIT’s Investment Plan 2015-2016 * Provisional until April SDR has been processed

Annual Report 2015 |

STATEMENT OF SERVICE PERFORMANCE

Goal

Output

Output measure

2014 Actual

2015 Target

2015 Actual

Enhance relationships with all external stakeholders

Minimum of 2 meetings per year for Advisory Committees, minimum of one annual Advisory Committee function

= 2 p.a.

≥2 p.a.

=2 p.a.

2.2

Promote an understanding of Te Tiriti Waitangi to staff

Provide bi-cultural training on an annual basis for all staff

2.2

2.1

Foster our social and professional obligations to both stakeholders and staff

Key Point of Focus

Annual function cancelled due to passing of Kaumatua

Annual Advisory Committee function held

100%

Maintain or increase Strategic relationship engagement with with Te Wananga Maori O Aotearoa maintained, evidenced by the number of programmes and the number of EFTS

=2013

≥ 2014

=2014

ªª

Foster and enhance relationships with all external stakeholders

ªª

Create and maintain policies which are consistent with the Human Rights Act

2.2

=2013

≥ 2014

=2013

ªª

Enhance and promote an understanding of Te Tiriti o Waitangi and its application to the institution

Maintain or increase Provision of Maori support for Maori Support Centre students service levels maintained or increased

2.3

Annual mandatory training provided for all staff on Human Rights Act and EEO issues

100%

Provide a physically desirable learning and working environment

Ensure that staff are aware of the policies and issues related to the Human Rights Act

100%

ªª

2.3

Ensure that staff are aware of conditions of service, sexual harassment and disability awareness issues

Annual mandatory 100% training provided and communication maintained through EEO staff noticeboard, inhouse newsletter and staff development plans

100%

2.3

Maintain employee database and record on-going job application statistics

On-going job application statistics recorded

100%

Note: All performance indicators relate directly to SIT’s Investment Plan 2015-2016

| Annual Report 2015

STATEMENT OF SERVICE PERFORMANCE

Goal

3.1

Operate a viable educationally directed business entity

Output

Output measure

2014 Actual

2015 Target

2015 Actual

Enhance business performance through the following output measures

Achieve target within 3%+/- of Government EFTS allocated in the Investment Plan process

3,582

97 – 103%

103.66%

Achieve a surplus of 1.5% of net assets

0.79%

≥1.5%

2.46%

Achieve reserves of a minimum of 15% of annual operating expenditure or 50% of annual capital expenditure, whichever is greater

$7.2m

$7.1m

$7.0 million = 15% of opex

Maintain an operating surplus of 3% of revenue

1.57%

≥ 3%

4.97%

Maintain a revenue to working capital ratio of 100% or more

309.18%

≥ 100%

256.52%

Achieve at least 5% net cash flow from operations

11.71%

≥ 5%

15.78%

New staff attract 80TTH abatement for training

100%

TDSU hours maintained or increased in mentoring and training of staff ( Note TDSU renamed ASU in 2015)

=2013

≥ 2014

=2014

Each faculty which delivers degrees, submits reports and plans

100%

Key Point of Focus ªª

Manage the organisation effectively and efficiently

ªª

Demonstrate commitment to the employment and development of quality staff

ªª

Enhance revenue income from other activities. 3.2

3.2

Employ and develop quality staff

Faculty research reports and plans developed for each academic year and submitted to the Research Committee of the Academic Board for approval

(101%)

= 15% of opex

Note: All performance indicators relate directly to SIT’s Investment Plan 2015-2016

Annual Report 2015 |

STATEMENT OF SERVICE PERFORMANCE

Financial Performance Indicators

Purpose of Measurement

Calculation

Measurement

Performance Target - To report on the following financial ratios as at 31 December 2015 with the aim of meeting or exceeding the previous year’s ratios.

2015

2014

Quick Ratio

2.92

3.13

10.60

13.88

Ratio of: Current Monetary Assets Current Monetary Liabilities

Equity/Liability Ratio

Ratio of: Total Equity Total Liability

Institute Performance Statistics Indicators

Net Income Margin

Net Income Total Revenue

4.97%

1.57%

Total Asset Turnover

Total Revenue Total Assets

45.33%

46.99%

Return on Investment

Net Income x Total 2.25% Revenue Total Revenue x Total Assets

0.74%

Indicator

Target

Actual

Institution EFTS Total

3,412

3,536

18.57

24.44

(Government Funded Mainstream programmes) Use of Teaching Resources (EFTS: Tutor Ratio) Note: Managers are excluded from the data to measure “use of teaching resources” 2015

2014

Number of EFTS (mainstream funding) - Actual

3,536.41

3,481.92

Number of EFTS (mainstream funding) – Target

3,411.56

3,676.98

Percentage Actual to Target

103.66%

94.70%

Number of EFTS (all courses) - Actual

4,908.03

4,544.71

Number of EFTS (all courses) – Target

4,555.68

4,713.26

Percentage Actual to Target

107.73%

96.42%

^Teaching Staff FTE – Actual

156.41

162.03

^Actual EFTS per FTE Tutor ratio

24.44

22.01

^Budget EFTS per FTE Tutor ratio

18.57

18.79

Excludes all Subcontracted EFTS and all facilitator FTE’s *Excludes all income and gains/losses in revaluation

| Annual Report 2015

INDEPENDENT AUDITOR’S REPORT

Annual Report 2015 |

INDEPENDENT AUDITOR’S REPORT

| Annual Report 2015

INDEPENDENT AUDITOR’S REPORT

Annual Report 2015 |

STATEMENT OF ACCOUNTING POLICIES

Statement of Accounting Policies Reporting Entity

Significant Accounting Policies

The Southern Institute of Technology (the Institute) is a TEI domiciled in New Zealand and is governed by the Crown Entities Act 2004 and the Education Act 1989.

The financial statements include a statement of financial performance, a statement of comprehensive revenue & expense, a statement of changes in equity, a statement of financial position, a statement of cash flows, a statement of contingencies and a statement of commitments.

The Institute and group consists of Southern Institute of Technology and its in substance subsidary, Southern Education Charitable Trust. The 49% equity share of its associate Southern Lakes English College Limited is equity accounted. MotorTrain Limited is a shell company in which SIT holds a 25% interest with no transactions being incurred during the year. The primary objective of the Institute and group is to provide tertiary education services for the benefit of the community rather than making a financial return. Accordingly, the Institute has designated itself and the group as public benefit entities for the purposes of financial reporting. The financial statements of the Institute and group are for the year ended 31 December 2015. The financial statements were authorised for issue by the Council on 18th April 2016.

Basis of Preparation The financial statements have been prepared on a going concern basis, and the accounting policies have been applied consistently throughout the period.

The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

Revenue Revenue is measured at fair value. The specific accounting policies for significant revenue items are explained below

SAC Funding SAC funding is the Instituteâ&#x20AC;&#x2122;s main source of operational funding from the Tertiary Education Commission (TEC). The Institute considers SAC funding to be non-exchange and recognises SAC funding as revenue when the course withdrawal date has passed, based on the number of eligible students enrolled in the course at that date and the value of the course.

Statement of Compliance

Student Tuition Fees

The financial statements of the Institute and group have been prepared in accordance with the requirements of the Crown Entities Act 2004 and the Education Act 1989, which include the requirement to comply with New Zealand generally accepted accounting practice (NZ GAAP).

Domestic student tuition fees are subsidised by government funding and are considered non-exchange. Revenue is recognised when the course withdrawal date has passed, which is when a student is no longer entitled to a refund for withdrawing from the course. International student tuition fees are accounted for as exchange transactions and recognised as revenue on a course percentage of completion basis. The percentage of completion is measured by reference to the days of the course completed as a proportion of the total course days.

The financial statements have been prepared in accordance with Tier 1 PBE accounting standards. These financial statements comply with PBE accounting standards. These financial statements are the first financial statements presented in accordance with the new PBE accounting standards. There is no material adjustments arising on transition to the new PBE accounting standards.

Presentation Currency and Rounding The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000).

| Annual Report 2015

Other Grants Received Other grants are recognised as revenue when they become receivable unless there is an obligation in substance to return the funds if conditions of the grant are not met. If there is such an obligation, the grants are initially recorded as grants received in advance when received and recognised as revenue when the conditions of the grant are satisfied.

STATEMENT OF ACCOUNTING POLICIES

Interest

Financial Assets

Interest revenue is recognised using the effective interest method.

The Institute classifies its financial assets into the following two categories: financial assets at fair value through profit or loss and loans and receivables. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and re-evaluates this designation at every reporting date.

Scholarships

Scholarships awarded by the Institute that reduce the amount of tuition fees payable by the student are accounted for as an expense and not offset against student tuition fees revenue.

Borrowing Costs Borrowing costs are recognised as an expense in the financial year in which they are incurred.

Advertising Costs Advertising costs are expensed when the related service has been rendered.

Revenue Tax Tertiary education institutes are classed as public bodies by the Inland Revenue Department and are therefore exempt from revenue tax.

Leases Finance Lease

Financial assets are initially measured at fair value plus transaction costs unless they are carried at fair value through profit and loss in which case the transaction costs are recognised in the statement of financial performance. In this category SIT has its equity investments and other investments. Purchases and sales of investments are recognized on tradedate, the date on which the Institute commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial asset have expired or have been transferred and the Institute has transferred substantially all risks and rewards of ownership. The two categories of financial assets are:

1) Financial assets at fair value through profit or loss

After initial recognition they are measured at their fair values. Gains or losses on re-measurement are recognised in the statement of financial performance. In this category SIT has its equity and other investments.

2) Loans and receivables These are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.

A finance lease is a lease that transfers to the lessee substantially all the risks and Rewards incidental to ownership of an asset, whether or not title is eventually transferred.

The Institute has in place an investment plan, which it follows closely.

At the commencement of the lease term, the Institute recognises finance leases as assets and liabilities in the statement of financial position at the lower of the fair value of the leased item and the present value of the minimum lease payments.

Impairment of Financial Assets

The amount recognised as an asset is depreciated over its useful life. If there is no certainty as to whether the Institute will obtain ownership at the end of the lease term, the asset is fully depreciated over the shorter of the lease term and its useful life.

Operating Lease An operating lease is a lease that does not transfer substantially all the risk and rewards incidental to ownership of an asset. Lease payments under an operating lease are recognised as an expense on a straight line basis over the lease term. Lease incentives received are recognised in the statement of financial performance over the lease term as an integral part of the total lease expense.

At each balance sheet date the Institute assesses whether there is any objective evidence that a financial asset or group of financial assets is impaired. Any impairment losses are recognised in the statement of financial performance.

Trade and Other Receivables Trade and other receivables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment. A provision for impairment of receivables is established when there is objective evidence that the Institute will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is the difference between the assetâ&#x20AC;&#x2122;s carrying amount and the present value of estimated future cash flows, discounted using the effective interest method.

Annual Report 2015 |

STATEMENT OF ACCOUNTING POLICIES

Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less and bank overdrafts.

Inventories Inventories held for sale on a commercial basis are valued at the lower of cost and net realisable value. Consumable stocks are valued at the lower of cost and current replacement cost. Cost is measured using the FIFO method. Inventories acquired through non-exchange transactions are measured at fair value at the date of acquisition. The write down from cost to current replacement cost or net realisable value is recognised in the statement of financial performance if applicable. However there have been no writedowns in inventories during the year.

Property, Plant and Equipment Property, plant and equipment consists of Operational assets - These include land, buildings, plant and equipment, computers, furniture, library books and motor vehicles. Restricted Assets - Crown owned land and buildings that are used by the Institute are included as part of the property, plant and equipment. These were first recognised on 31 December 1995 at deemed cost obtained by using the optimised depreciated replacement cost methodology. Although legal title has not been transferred, Southern Institute of Technology has assumed all the normal risks and rewards of ownership. Land and buildings were re-valued as at 31 December 2013 by Rural Value, a QV business unit, Registered Valuers. Land and buildings are re-valued with sufficient regularity to ensure that their carrying amount does not differ materially from fair value and at least every three years.

Land is measured at fair value, and buildings and infrastructure are measured at fair value less accumulated depreciation and impairment losses. All other asset classes are measured at cost, less accumulated depreciation and impairment losses.

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 Institute and the cost of the items can be measured reliably. In most instances, an item of property, plant and equipment is recognised at its cost. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at fair value when control over the asset is obtained.

Disposals Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are included in the statement of financial performance. When revalued assets are sold, the amounts included in property revaluation reserves in respect of those assets are transferred to general funds.

Subsequent Costs Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to the Institute and the cost of the item can be measured reliably.

Capital Work in Progress Capital work in progress is valued on the basis of expenditure incurred and gross progress claim certificates up to balance date. Work in progress is not depreciated.

Depreciation Property, plant and equipment is depreciated on a straight line basis on all property, plant and equipment other than land at rates that will write off the cost or value of the assets over their estimated lives.

The net revaluation results are credited or debited to other comprehensive revenue and is accumulated to an asset revaluation reserve in equity. Where this would result in a debit balance in the asset revaluation reserve, this balance is not recognised in other comprehensive revenue but is recognised in the surplus or deficit. Any subsequent increase on revaluation that offsets a previous decrease in value recognised in the surplus or deficit will be recognised first in the surplus or deficit up to the amount previously expensed, and then recognised in other comprehensive revenue.

The depreciation rates used in the preparation of these statements are as follows:

Library collections are assessed annually by the Instituteâ&#x20AC;&#x2122;s head librarian, in accordance with draft guidelines released by the New Zealand Library Association and the National Library of New Zealand in May 2002. Impairment losses for the year are shown in Note 10.

Leases & Leasehold 3 - 5 years Improvements

| Annual Report 2015

Buildings

5 - 100 years

1 â&#x20AC;&#x201C; 20%

Motor Vehicles

3-5 years

20-33%

Furniture and Fittings

10 years

10%

Computers

3 years

33%

General Equipment

3 - 5 years

10-33% Term of Lease 20 â&#x20AC;&#x201C; 33%

The above rates have been applied consistently.

STATEMENT OF ACCOUNTING POLICIES

The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end. The Library collection is depreciated on a straight line basis over seven years and assessed annually for signs of impairment.

Intangible Assets Software Acquisition Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs associated with the development and maintenance of the Institute’s website are recognised as an expense when incurred.

Naming Rights Naming Rights to Stadium Southland acquired in the 2014 financial year are being amortised over the contractual term of six years.

Course Development Costs Course development costs relate to development of educational programmes and courses and are capitalised when it is probable that future economic benefits arising from use of the intangible asset will flow to the group. Following the initial recognition of the course development expenditure, the asset is carried at cost less accumulated amortisation and impairment losses.

Television Commercial Development and Online Content TVC’s and Online Content are capitalised when it is probable that future economic benefits arising from use of the intangible asset will flow to the group. Following the initial recognition of the TVC’s and Online Content expenditure, the asset is carried at cost less accumulated amortisation and impairment losses.

Amortisation Computer software licenses are amortised on a straight line basis over their estimated useful lives of 3 to 5 years (20%-33% straight line). The naming rights to Stadium Southland are amortised on a straight line basis over the contractual term of six years (16.66%). Course Development Costs are amortised on a straight line basis, from the commencement of the course, over their estimated useful lives of 3 to 5 years (20%-33%). TVCs and Online Content are amortised on a straight line basis over their estimated useful lives of 3 years (33%). The amortisation period and amortisation method for each class of intangible asset 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.

Impairment of Property, Plant, and Equipment and Intangible Assets Intangible assets subsequently measured at cost that have an indefinite useful life, or are not yet available for use, are not subject to amortisation and are tested annually for impairment. Property, plant, and equipment and intangible assets subsequently measured at cost that have a finite useful life are reviewed for impairment at each balance date and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. If an asset’s carrying amount exceeds its recoverable amount, the asset is considered to be impaired and the carrying amount is written down to the recoverable amount. The impairment loss is recognised in the surplus or deficit. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the surplus or deficit when the asset is derecognised.

Impairment of Non-Financial Assets Non-Financial Assets with a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where the Institute would, if deprived of the asset, replace its remaining future economic benefits or service potential. If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount. The total impairment loss is recognised in the statement of financial performance. For re-valued assets the impairment loss is recognised in other comprehensive revenue to the extent the impairment loss does not exceed the amount in the revaluation reserve in equity.

The carrying value of each class of intangible asset is reviewed for indicators of impairment annually. Intangible assets are tested for impairment where an indicator of impairment exists. Annual Report 2015 |

STATEMENT OF ACCOUNTING POLICIES

Employee Benefits

Equity

Short Term Benefits

Equity of the Institute is the measured difference between total assets and total liabilities. Equity is disaggregated and classified into a number of reserves. The components of equity are:

Employee benefits that the Institute expects to be settled within 12 months of balance date are measured at nominal values based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned to, but not yet taken at balance date, retiring and long service leave entitlements expected to be settled within 12 months, and sick leave.

ªª Retained earnings. ªª Other funds and reserves. ªª Trust funds. ªª Property revaluation reserve.

The Institute recognises a liability for sick leave to the extent that compensated absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent the Institute anticipates it will be used by staff to cover those future absences.

Budget Figures

Long Term Benefits

Entitlements that are payable beyond 12 months, such as long service leave and retiring leave, have been calculated on an actuarial basis. These calculations are based on:-

Cost Allocation

- Likely future entitlements accruing to staff, based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement and contractual entitlements information; and - The present value of the estimated future cash flows. A discount rate of 5.75% and an inflation factor of 2.75% were used. The discount rate is based on the weighted average of interest rates for Government stock with terms to maturity similar to those of the relevant liabilities. The inflation factor is based on the expected long term increase in remuneration for employees.

Goods and Services Tax (GST) All items in the financial statements are stated exclusive of GST, except for receivables and payables, which are stated on a GST inclusive basis. The revenue in advance is treated as GST exclusive. Where GST is not recoverable as input tax then 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. The net GST paid to, or received from the Inland Revenue Department, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows. Commitments and contingencies are disclosed exclusive of GST.

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. The budget figures shown are those approved by Council in August 2014.

The Institute has derived the cost of service for each significant activity of SIT using the cost allocation system outline below. Direct costs are those costs directly attributable to a significant activity. Indirect costs are those costs, which cannot be identified in an economically feasible manner, with a specific activity. Direct costs are charged directly to significant activities. Indirect costs are charged to significant activities using appropriate cost drivers such as actual usage, Equivalent Full Time Students (EFTS), Staff numbers and floor area.

Critical Accounting Estimates and Assumptions In preparing these financial statements the Institute has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:-

Property Revaluations Land is valued at fair value using market based evidence based on its highest and best use with reference to comparable land values. Where there is a designation held against the land, adjustments have been made to reflect that designation. Buildings are valued on either a fair market or depreciated replacement cost basis. Where the fair value of an asset can be determined by reference to the price in an active market for the same asset or a similar asset, the fair value of the asset

| Annual Report 2015

STATEMENT OF ACCOUNTING POLICIES

is determined using this information. Where fair value of the asset is not able to be reliably determined using market based evidence, depreciated replacement cost is considered to be the most appropriate basis for determination of the fair value. Depreciated replacement cost is determined using a number of significant assumptions which include; ªª The replacement cost is derived from recent construction contracts of similar assets and Property Institute of New Zealand cost information. ªª Estimating the remaining useful life of the asset. ªª Straight line depreciation has been applied in determining the depreciated replacement cost value of the asset.

Property, Plant and Equipment Useful Lives and Residual Values At each balance date the Institute reviews the useful lives and residual values of its property, plant and equipment. Assessing the appropriateness of useful life and residual value estimates of property, plant and equipment requires the Institute to consider a number of factors such as the physical condition of the asset, expected period of use of the asset by the Institute and expected disposal proceeds from the future sale of the asset. An incorrect estimate of the useful life or residual value will impact on the depreciable amount of an asset, therefore impacting on the depreciation expense recognised in the statement of financial performance, and carrying amount of the asset in the statement of financial position. The Institute minimises the risk of this estimation uncertainty by:ªª physical inspection of assets; ªª asset replacement programmes; ªª review of second hand market prices for similar assets; and ªª analysis of prior asset sales. The Institute has not made significant changes to past assumptions concerning useful lives and residual values. The carrying amounts of property, plant and equipment are disclosed in note 10.

Critical Judgements in Applying the Institute’s Accounting Policies Management has exercised the following critical judgements in applying accounting policies for the year ended 31 December 2015: The Council and Management must exercise their judgement when recognising grant revenue to determine if conditions of the grant contract have been satisfied. This judgement will be based on the facts and circumstances that are evident for each grant contract.

14. Property in the legal name of the Crown that is occupied by the Institute is recognised as an asset in the statement of financial position. The Institute considers it has assumed all the normal risks and rewards of ownership of this property despite legal ownership not being transferred and accordingly it would be misleading to exclude these assets from the financial statements.

Standards issued and not yet effective and not early adopted Disclosure initiative PBE IPSAS 1 Presentation of Financial Statements has recently been updated to address percieved impediments to preparers exercising the judgements in preparing financial statements. These amendments apply to the Institute and group in preparing the 31 December 2016 financial statements. The Institute and group will be considering these amendments and relooking at how its financial statements are presented in preparing the 31 December 2016 financial statements. Other amendments While there are other amendments issued and not yet effective, the Institute and group does not consider these to be relevant and therefore no information has been dsiclosed about these amendments.

Changes in Accounting Policies The Minister of Commerce has approved a new Accounting Standards Framework (incorporating a Tier Strategy) developed by the External Reporting Board (XRB). Under this Accounting Standards Framework, the Institute is classified as a Tier 1 reporting entity and it has applied full public sector Public Benefit Entity Accounting Standards (PAS). These standards are mainly based on current International Public Sector Accounting Standards. The effective date for the new standards for public sector entities is for reporting periods beginning on or after 1 July 2014. The Institute has transitioned to the new standards in preparing its 31 December 2015 financial statements.

Basis of Consolidation The group financial statements are prepared by adding together like items of assets, liabilities, equity, revenue, expenses, and cash flows on a line-by-line basis. All significant intragroup balances, transactions, revenue, and expenses are eliminated in full on consolidation.

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 Institute accounts for the funding as a capital contribution directly in equity. Information about capital contributions recognised in equity is disclosed in note Annual Report 2015 |

STATEMENT OF ACCOUNTING POLICIES

Subsidiaries

Associate

The Institute consolidates in the group financial statements all entities where the Institute has the capacity to control the financing and operating policies of an entity so as to obtain benefits from the activities of the entity. This power exists where the Institute controls the majority voting power on the governing body or where such policies have been irreversibly predetermined by the Institute or where the determination of such policies is unable to materially impact the level of potential ownership benefits that arise from the activities of the subsidiary.

The Institute’s associate investment is accounted for in the group financial statements using the equity method. An associate is an entity over which the Institute has significant influence and that is neither a subsidiary nor an interest in a joint venture. The investment in an associate is initially recognised at cost and the carrying amount is increased or decreased to recognise the group’s share of the change in net assets of the associate after the date of acquisition. The group’s share of the associate’s surplus or deficit of the associate is recognised in the group surplus or deficit. Distributions received from an associate reduce the carrying amount of the investment in the group financial statements.

Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are de-consolidated from the date that control ceases. The Institute will recognise goodwill where there is an excess of the consideration transferred over the net identifiable assets acquired and liabilities assumed. This difference reflects the goodwill to be recognised by the Institute. If the consideration transferred is lower than the net fair value of the Institute’s interest in the identifiable assets acquired and liabilities assumed, the difference will be recognised immediately in the surplus or deficit. Investments in subsidiaries are carried at cost in the Institute’s parent entity financial statements.

| Annual Report 2015

If the share of deficits of an associate equals or exceeds an interest in the associate, the group discontinues recognising its share of further deficits. After the group’s interest is reduced to zero, additional deficits are provided for, and a liability is recognised, only to the extent that the group has incurred legal or constructive obligations or made payments on behalf of the associate. If the associate subsequently reports surpluses, the group will resume recognising its share of those surpluses only after its share of the surpluses equals the share of deficits not recognised. Where the group transacts with an associate, surpluses or deficits are eliminated to the extent of the group’s interest in the relevant associate.

FINANCIAL STATEMENTS

Financial Statements Statement of Financial Performance For the year ended 31 December 2015

Southern Institute of Technology

Group

Actual

Budget

Actual

2015

2014

2015

2014

Notes

$’000

Government Grants

32,026

30,809

32,891

32,026

32,891

Student Tuition / Course Fees

9,733

8,473

6,959

9,733

6,959

Revenue - Other

7,456

8,923

8,898

7,407

8,851

49,215

48,205

48,748

49,166

48,701

21,224

21,112

20,882

21,224

20,882

10 11

5,324

5,381

4,943

5,324

4,943

100

20,194

20,724

22,131

20,194

22,131

Revenue

Total Revenue Expenditure Personnel Costs Depreciation and amortisation Restructuring Costs Other operating expenses

(Gains) / Losses on disposal of assets Total Expenditure Share of Associates’s surplus/(deficit)

(10)

46,807

47,317

48,032

46,807

48,032

2,444

888

766

2,395

719

Net surplus

Statement of Comprehensive Revenue & Expense For the year ended 31 December 2015

Southern Institute of Technology

Notes Net surplus

Actual

Budget

Actual

2015

2014

2015

2014

$’000

2,444

888

766

2,395

719

2,444

888

766

2,395

719

Gains on property revaluations Total comprehensive revenue

Group

Explanations of major variances against budget are provided in note 24. The accompanying notes form part of these financial statements.

Annual Report 2015 |

FINANCIAL STATEMENTS

Statement of Changes in Equity For the year ended 31 December 2015

Southern Institute of Technology Actual

Budget

Group Actual

Actual

2015

2014

2015

2014

$’000

96,778

96,536

96,012

96,852

96,133

2,444

888

766

2,395

719

Net Transfer to restricted reserves

Capital Contributions

99,222

97,424

96,778

99,247

96,852

Notes Balance at 1 January Total comprehensive revenue

Balance at 31 December

The accompanying notes form part of these financial statements.

| Annual Report 2015

FINANCIAL STATEMENTS

Statement of Financial Position For the year ended 31 December 2015

Notes Assets Current Assets Cash and cash equivalents Trade and other receivables Inventories Other Financial Assets Total Current Assets Non-Current Assets Other Financial Assets Investment in Associate Assets held for Sale Property, plant and equipment Intangible Assets Total Non-Current Assets Total Assets Liabilities Current Liabilities Trade and other payables Employee Benefit Liabilities Total Current Liabilities Non-Current Liabilities Employee Entitlements Total Non-Current Liabilities Total Liabilities Net Assets Equity Retained Earnings Property Revaluation Reserve Total Equity

Southern Institute of Technology Actual Budget Actual 2015 2015 2014 $’000 $’000 $’000

Group Actual 2015 $’000

Actual 2014 $’000

6 7 8 9

6,587 1,585 1,561 18,609 28,342

12,082 1,800 1,000 7,555 22,437

11,094 2,569 1,324 7,555 22,542

6,605 1,592 1,561 18,609 28,367

11,100 2,576 1,324 7,616 22,616

9 26 10 10 11

4 417 78,718 1,098 80,237 108,579

3 350 81,041 500 81,894 104,331

4 356 150 79,504 1,196 81,210 103,752

4 417 78,718 1,098 80,237 108,604

4 356 150 79,504 1,196 81,210 103,826

12 13

7,535 1,621 9,156

5,000 1,700 6,700

4,855 1,920 6,775

7,535 1,621 9,156

4,855 1,920 6,775

201 201 9,357 99,222

207 207 6,907 97,424

199 199 6,974 96,778

201 201 9,357 99,247

199 199 6,974 96,852

14 14

83,415 15,807 99,222

81,617 15,807 97,424

80,971 15,807 96,778

83,440 15,807 99,247

81,045 15,807 96,852

The accompanying notes form part of these financial statements.

Sarah Brown Chairperson of council

Penny Simmonds Chief executive

18th April 2016

Annual Report 2015 |

FINANCIAL STATEMENTS

Statement of Cash Flows For the year ended 31 December 2015

Southern Institute of Technology Note

Group

Actual

Budget

Actual

2015

2014

2015

2014

$’000

34,106

31,102

33,013

34,106

33,013

Cash flows from operating activities Receipts from government grants Interest Received

881

1,100

882

883

886

17,261

16,003

15,240

17,261

15,190

Payments to suppliers

(20,528)

(21,054)

(23,583)

(20,578)

(23,583)

Payments to employees

(21,224)

(20,882)

(21,224)

(20,882)

359

10,855

6,269

4,686

10,807

4,640

(11,079)

10,298

(11,019)

10,338

(25)

(306)

(25)

(306)

(4,283)

(4,882)

(7,246)

(4,283)

(7,246)

(15,359)

(4,882)

2,785

(15,299)

2,825

Receipts from Revenue other

Goods and Services Tax (net) Net cash from operating activities Cash flows from investing activities Proceeds from sale of property, plant and equipment Net Proceeds/(Acquistions) financial assets Investment in Associate

Purchase of Fixed Assets Cash flows from investing activities Cash flows from financing activities Proceeds from borrowings

Equity Contributions

(3)

Net cash from financing activities

(3)

(4,507)

1,387

7,472

(4,495)

7,466

11,094

10,695

3,622

11,100

3,634

6,587

12,082

11,094

6,605

11,100

Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year

The accompanying notes form part of these financial statements. The GST (net) component of operating activities reflects the net GST paid to and received from the Inland Revenue Department. The GST (net) component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes and to be consistent with the presentation basis of the other primary financial statements.

| Annual Report 2015

FINANCIAL STATEMENTS

Reconciliation of the Net Surplus on Operations with the Net Cash Flows from Operation Activities For the year ended 31 December 2015

Southern Institute of Technology Actual

Surplus / (deficit)

Budget

Group Actual

Actual

2015

2014

2015

2014

$’000

2,444

888

766

2,395

719

(36)

(50)

(36)

(50)

5,324

5,381

4,943

5,324

4,943

(10)

(12)

(10)

(12)

264

881

264

(660)

129

(660)

484

(236)

484

648

Add / (less) non-cash items: Share of associate surplus/(deficit) Depreciation and amortisation Movement in Employee Entitlements Add / (less) items classified as investing or financing activities: Loss on disposal of Investment (Gains) / losses on disposal of property, plant and equipment Add / (less) movements in working capital items: (Inc) / Dec Accounts receivable (Inc) / Dec Prepayments (Inc) / Dec Inventories Inc / (Dec) Accounts payable

881 128

(236) 648

Inc / (Dec) Revenue in Advance

2,164

122

2,164

122

Inc / (Dec) Accrued Expenses

(454)

(1,239)

(454)

(1,239)

10,855

6,269

4,686

10,807

4,640

Net cash inflow / (outflow) from operating activities

The accompanying notes form part of these financial statements.

Annual Report 2015 |

FINANCIAL STATEMENTS

Statement of Commitments For the year ended 31 December 2015

Southern Institute of Technology

Group

Actual

2015

2014

2015

2014

$’000

112

1,428

112

1,428

Capital commitments Land & Buildings Equipment Hospitality Redevelopment

112

1,428

112

1,428

Not later than one year

290

276

290

276

Later than one year and not later than five years

502

625

502

625

Later than five years

192

984

901

984

901

Not later than one year

Later than one year and not later than five years

Later than five years

Not later than one year

947

882

947

882

Later than one year and not later than five years

623

1,397

6233

1,397

1,570

2,279

1,570

2,279

Not later than one year

Later than one year and not later than five years

Later than five years

Operating Lease commitments Non cancellable operating lease as lessee: Property

Equipment

Services

Later than five years Franchise Course Fees

TOTAL COMMITMENTS

2,666

4,688

2,666

4,688

Equipment leases can be renewed at the Institute’s option, with rents set by reference to current market rates for items of equivalent age and condition. The Institute does not have the option to purchase the asset at the end of the lease term. There are no restrictions placed on the Institute by any of the leasing arrangements. The accompanying notes form part of these financial statements.

| Annual Report 2015

FINANCIAL STATEMENTS

Statement of Contingencies For the year ended 31 December 2015

Contingent Liabilities There are no contingent liabilities as at 31 December 2015 (Last Year $Nil). The accompanying notes form part of these financial statements.

Annual Report 2015 |

FINANCIAL STATEMENTS

Notes to the Financial Statements For the year ended 31 December 2015

1 Government Grants This includes monies received from Government by way of an Operational Bulk Grant, which is based on equivalent fulltime student (EFTS) levels and the funding category levels of these EFTS, and specific purpose – related grants. An analysis of Government grant funding is as follows: Southern Institute of Technology

Operational bulk grant Non-EFTS funding Childcare Centre grant

Budget

Actual

2015

2014

2015

2014

$’000

29,149

28,103

30,172

29,149

30,172

1,941

1,688

1,770

1,941

1,770

797

800

810

797

810

100

32,026

30,809

32,891

32,026

32,891

Quality Reinvestment Programme Disability grant Maori & Pasifika Grant

Group

Actual

Other

2 Student tuition and course fees The amount shown is for courses undertaken outside the zero fee scheme (e.g. ITO courses, community courses, international students and non trade courses at the Christchurch Campus). Direct course costs that are directly attributable to students for each course are also shown here. Southern Institute of Technology Group Actual

Student tuition and course fees

Budget

Actual

2015

2014

2015

2014

$’000

9,733

8,473

6,959

9,733

6,959

3 Revenue - Other Southern Institute of Technology

Accommodation Consulting Revenue

Group

Actual

Budget

Actual

2015

2014

2015

2014

$’000

936

729

708

936

708

4,391

5,671

5,802

4,391

5,802

Childcare Fees

294

250

299

294

299

Sundry Revenue

936

1,173

1,175

886

1,125

Interest Revenue

881

1,100

882

885

7,456

8,923

8,898

7,407

8,851

Course Material

| Annual Report 2015

FINANCIAL STATEMENTS

4 Personnel Costs Southern Institute of Technology Actual

Salaries and Wages Employer Contributions to defined contribution plans Increase / (decrease) in employee entitlements Other Total Personnel Costs

Budget

Actual

Group Actual

Actual

2015

2014

2015

2014

$’000

20,480

20,009

19,606

20,480

19,606

414

370

412

414

412

(297)

180

(297)

180

627

733

684

627

684

21,224

21,112

20,882

21,224

20,882

5 Other operating expenses Southern Institute of Technology Actual

Audit fees for the financial statement audit - annual fee Leasing of equipment and services Advertising and publicity

Budget

Actual

Group Actual

Actual

2015

2014

2015

2014

$’000

100

368

681

515

368

515

1,803

1,499

2,355

1,803

2,355

Consultancy

759

1,072

779

759

779

Repairs and Maintenance

330

612

265

330

265

Inventories Consumed

114

Bad Debts

Donations and Koha Other Operating Expenses

16,759

17,931

16,752

17,931

Total - other operating expenses

20,194

20,724

22,131

20,194

22,131

Annual Report 2015 |

FINANCIAL STATEMENTS

6 Cash and cash equivalents Southern Institute of Technology Actual

Budget

Actual

Group Actual

Actual

2015

2014

2015

2014

$’000

2,032

1,637

1,500

2,050

1,506

BNZ Call Account

454

442

454

442

ANZ Call Account

392

334

392

334

ASB Call Account

Westpac Call Account

BNZ Cheque Account Cash in Hand

Rabobank Call Account

1,671

1,762

1,671

1,762

ASB

1,500

Bank of New Zealand

2,520

Southland Building Society ANZ Bank Rabo Bank

2,351

1,500

2,000

1,500

6,587

12,082

11,094

6,605

11,100

The carrying value of short-term deposits with maturity dates of three months or less approximates their fair value. Refer to note 9 for weighted average effective interest rate for cash and cash equivalents.

| Annual Report 2015

FINANCIAL STATEMENTS

7 Trade and other receivables Southern Institute of Technology Actual

Budget

Actual

Group Actual

Actual

2015

2014

2015

2014

$’000

Trade Debtors

692

1,260

1,705

699

1,712

Prepayments

893

540

864

893

864

1,585

1,800

2,569

1,592

2,576

532

539

1,220

Past due 31-60 days

224

Past due 61-90 days

261

Past due >91 days

692

1,705

699

1,705

Current Past due 1-30 days

Total due

The carrying value of debtors and other receivables approximates their fair value. As of 31 December 2015 and 31 December 2014 all overdue receivables have been assessed for impairment and appropriately written off. There is no provision for impairment on the remaining debtors.

8 Inventories Southern Institute of Technology

Group

Actual

Budget

Actual

2015

2014

2015

2014

$’000

Inventory held for the use in the provision of goods and services

440

300

415

440

415

Publications held for sale

160

200

191

160

191

961

450

716

961

716

1,561

1,000

1,324

1,561

1,324

Information Technology Inventory Full Size Works Total

The carrying amount of inventories is measured at the lower of cost or net realisable value/current replacement cost. No inventories are pledged as securities for liabilities.

Annual Report 2015 |

FINANCIAL STATEMENTS

9 Other Financial Assets Southern Institute of Technology Actual

Budget

Actual

Group Actual

Actual

2015

2014

2015

2014

$’000

ANZ Banking Group (New Zealand) Limited

1,055

ASB

3,500

Bank of New Zealand

4,020

1,000

4,020

1,061

Current Portion Loans and receivables Short-term deposits with maturities greater than 3 but less than 12 months

Kiwibank

3,500

2,000

3,500

2,000

Rabobank

2,000

Southland Building Society

1,534

Westpac

3,000

1,500

3,000

1,500

18,609

7,555

18,609

7,616

Foodstuffs (South Island) Limited

Polytechnics International New Zealand Limited

Total Non-current portion Fair value through profit and loss - available for sale

Varsity Travel Unit Trust

Total

2,548

2,568

2,548

2,568

There were no impairment provisions for other financial assets. Maturity analysis and effective interest rates The maturity dates for all other financial assets are as follows: Call accounts maturing in three months or less Average Maturity Days: Weighted Average effective interest rate:

1.79%

3.17%

2.28%

3.17%

Short-term deposits with maturities of 1 - 12 months

20,609

14,575

20,609

7,616

148

104

148

104

3.66%

4.31%

3.66%

4.31%

Average Maturity Days: Weighted Average effective interest rate:

| Annual Report 2015

charges

1/01/2015

Annual Report 2015 |

Total Southern Institute of Technology

(13,473)

79,654

150

1,025

556

2,760

2,878

157

72,048

$000’s

1/01/2015

amount

Carrying

77,806

375

4,255

108

524

2,044

2,480

204

67,816

$000’s

1/01/2014

amount

Carrying

$000’s

(5)

(4,589)

(51)

(133)

(895)

(1,149)

(47)

(2,314)

(18)

(10)

(8)

$000’s

(4)

(4,849)

(37)

(135)

(902)

(1,290)

(47)

(2,438)

96,346

658

660

999

10,650

6,256

396

76,727

$000’s

(17,628)

(550)

(396)

(7,675)

(3,963)

(286)

(4,758)

$000’s

31/12/2015 $000’s

depreciation 31/12/2015 and impairment

revaluation

Accumulated

(13,473)

(564)

(261)

(7,331)

(2,758)

(239)

(2,320)

depreciation) $000’s

surplus

Cost/

93,127

150

1,025

644

817

10,091

5,636

396

74,368

charges

impairment depreciation

Revaluation

$000’s

accumulated

(net of

disposals

Current year Current year Current year

(30)

(1)

(24)

(5)

$000’s

31/12/2014 and impairment

depreciation

Accumulated

charges $000’s

Cost/ revaluation

31/12/2014 $000’s

surplus

Revaluation

accumulated

charges

impairment depreciation

depreciation)

(net of

disposals

Current year Current year Current year

amount

Carrying

78,718

658

110

603

2,975

2,293

110

71,969

31/12/2015

amount

Carrying

79,654

150

1,025

556

2,760

2,878

157

72,048

31/12/2014

Assets held for Sale comprise single storey house type units, previously used as classrooms, but which have become surplus to requirments. These are held at the lower of cost and net realisable value.

3,935

(150)

(367)

186

1,125

705

2,359

$000’s

transfers

additions/

Current year

6,472

(225)

(3,230)

170

1,635

1,552

6,546

$000’s

transfers

additions/

Current year

There are no Institute’s property, plant and equipment pledged as security for liabilities.

93,127

150

Assets held for Sale

(564)

644

1,025

(261)

(7,331)

(2,758)

(239)

(2,320)

$000’s

817

Works in Progress

Vehicles

Library Books

Furniture and Equipment

10,091

396

5,636

Computers

74,368

$000’s

depreciation

valuation

Leasehold

Land and Buildings

Southern Institute of Technology

Accumulated

Cost/

1/01/2015

(10,796)

88,602

375

Total Southern Institute of Technology

4,255

Assets held for Sale

(556)

664

Works in Progress

Vehicles

(7,351)

(2,563) (128)

9,395

Furniture and Equipment

(192)

(6)

$000’s

652

5,043

Computers

Library Books

396

67,822

Leasehold

Land and Buildings

Southern Institute of Technology

charges

1/01/2014

$000’s

depreciation

1/01/2014

Accumulated

Cost/

valuation

Movements for each class of property, plant, and equipment for the Southern Institute of Technology are as follows:

10 Property, Plant and Equipment

FINANCIAL STATEMENTS

| Annual Report 2015

150 (13,473)

(564)

(261)

(7,331)

(2,758)

(239)

(2,320)

$000’s

79,654

150

1,025

556

2,760

2,878

157

72,048

$000’s

Current year

$000’s

Current year

(4,589)

(51)

(133)

(895)

(1,149)

(47)

(2,314)

(18)

(10)

(8)

$000’s

(4)

(4,849)

(37)

(135)

(902)

(1,290)

(47)

(2,438)

96,346

658

660

999

10,650

6,256

396

76,727

$000’s

amount

Carrying

79,654

150

1,025

556

2,760

2,878

157

72,048

(17,628)

(550)

(396)

(7,675)

(3,963)

(286)

(4,758)

$000’s

78,718

658

110

603

2,975

2,293

110

71,969

and impairment 31/12/2015

depreciation

Accumulated

(13,473)

(564)

(261)

(7,331)

(2,758)

(239)

(2,320)

31/12/2015

revaluation

Cost/

93,127

150

1,025

644

817

10,091

5,636

396

74,368

depreciation) $000’s

surplus

Revaluation

$000’s

charges

impairment depreciation

Current year

(5)

$000’s

accumulated

(net of

disposals

Current year

(30)

(1)

(24)

(5)

$000’s

amount

Carrying

and impairment 31/12/2014

depreciation

Accumulated

31/12/2014

revaluation

Cost/

depreciation) $000’s

surplus

Revaluation

charges

impairment depreciation

Current year

accumulated

(net of

disposals

Current year

3,935

(150)

(367)

186

1,125

705

2,359

$000’s

transfers

additions/

Current year

6,472

(225)

(3,230)

170

1,635

1,552

6,546

$000’s

transfers

additions/

Current year

TThere are no Institute’s property, plant and equipment pledged as security for liabilities.

93,127

Assets held for Sale

Total Southern Institute of Technology

1,025

644

Works in Progress

817

Vehicles

10,091

Library Books

Furniture and Equipment

396

5,636

Computers

74,368

$000’s

charges

1/01/2015

amount

depreciation

valuation

1/01/2015

Carrying

Accumulated

Leasehold

Land and Buildings

Group

375 77,806

Cost/

4,255

108

524

2,044

2,480

204

67,816

$000’s

(10,796)

375

(556)

(128)

(7,351)

(2,563)

(192)

(6)

$000’s

1/01/2014

amount

Carrying

88,602

Assets held for Sale

Total Southern Institute of Technology

4,255

664

Works in Progress

652

Vehicles

9,395

Furniture and Equipment

Library Books

396

5,043

Computers

67,822

$000’s

charges

Leasehold

Land and Buildings

Group

depreciation

valuation

1/01/2014

Accumulated

Cost/

Movements for each class of property, plant, and equipment for the Group are as follows:

10 Property, Plant and Equipment (continued) FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 10 Property, Plant, and Equipment Work in Progress Southern Institute

Group

of Technology $’000

$’000

125

Computers

Furniture and Equipments

502

Buildings

Intangible Vehicles

658

Work in progress has been updated to be disclosed on a class-of-assets basis as required by PBE IPSAS 17.89. This information was previously permitted to be presented in aggregate.

11 Intangible Assets Southern Institute of Technology

Group

Cost

$’000

Balance at 1 January 2014

1,741

Additions

693

Transfers

281

Disposals

Balance at 31 December 2014

2,715

Balance at 1 January 2015

2,715

Additions

376

Transfers

Disposals

Balance at 31 December 2015

3,091

Accumulated Amortisation

$’000

Balance at 1 January 2014

972

Amortisation Expense

354

Transfers

193

Disposals

Balance at 31 December 2014

1,519

Balance at 1 January 2015

1,519

474

Amortisation Expense Transfers Disposals

Balance at 31 December 2015

1,993

Carrying Amounts

$’000

At 1 January 2014

769

At 31/12/2014 and 1/1/2015

1,196

At 31 December 2015

1,098

There are no restrictions over the title of the Institute’s intangible assets nor are any intangible assets pledged as security for liabilities. Annual Report 2015 |

FINANCIAL STATEMENTS

12 Trade and other payables Southern Institute of Technology Actual

Budget

Actual

Group Actual

Actual

2015

2014

2015

2014

$’000

486

2,500

297

486

297

- Student fees in advance

1,455

1,980

3,082

1,455

3,082

- Debtors in advance

3,848

Trade Payables Halls of Residence Bonds Revenue in advance

- Elderhostel fees in advance

3,848

292

500

352

292

352

1,079

942

1,079

942

Contract Retentions

112

100

112

100

GST payable

228

7,535

5,000

4,855

7,535

4,855

- Other fees in advance Accrued expenses

Creditors and other payables are non interest bearing and normally settled on 20 day terms and the above amounts approximate their fair value. The debtors in advance includes GST while the other payables does not include GST. Southern Institute of Technology Actual

Actual

Group Actual

Actual

2015

2014

2015

2014

$’000

Total Payables under exchange

5,102

1,941

5,102

1,941

Total Payables under non exchange

2,433

2,914

2,433

2,914

7,535

4,855

7,535

4,855

13 Employee Entitlements Southern Institute of Technology

Payroll Accrued Annual Leave Sick Leave Long Service Leave

Group

Actual

Budget

Actual

2015

2014

2015

2014

$’000

356

600

684

356

684

1,210

1,100

1,177

1,210

1,177

201

207

199

201

199

1,822

1,907

2,119

1,822

2,119

1,621

1,700

1,920

1,621

1,920

201

207

199

201

199

1,822

1,907

2,119

1,822

2,119

Represented by: Current Portion Non-Current Portion Total Employee Entitlements

The present value of the long service obligation depends on a number of factors that are determined on an actuarial basis using a number of assumptions. Two key assumptions in calculating this liability include the discount rate and the salary inflation factor. A movement of +/- 1% on either of these factors produces a non material impact on the present value of long service obligations.

| Annual Report 2015

FINANCIAL STATEMENTS

14 Equity Southern Institute of Technology

Group

Actual

Budget

Actual

2015

2014

2015

2014

$’000

80,971

80,729

80,205

81,045

80,326

2,444

888

766

2,395

719

Capital Contribution

Transfers to restricted reserves

Transfers from restricted reserves

83,415

81,617

80,971

83,440

81,045

15,807

As at 31 December

15,807

Total Equity

99,222

97,424

96,778

99,247

96,852

Actual

Budget

Actual

Retained Earnings As at 1 January Net surplus

As at 31 December Property Revaluation Reserve As at 1 January Property revaluation gains

Restricted reserves consist of: Whare Awhina Fund

2015

2014

2015

2014

$’000

Programme Funds

Clearwater Estate Trust

Warren Forbes Award

Patricia O’Connor Award

Fletcher Challenge Award

135

133

135

133

Restricted Reserves are held in trust for student activities and awards and are included in the balance of retained earnings.

Annual Report 2015 |

FINANCIAL STATEMENTS

15 Councillors’ Fees Southern Institute of Technology and Group Actual

Budget

Actual

2015

2014

Addie, D

10,000

Brown, S

28,000

5,830

Grant, J

10,000

Heenan, P

18,000

Jackson, P

10,000

Skerrett, M

10,000

Donald, M

Ward, T Total Councillors’ Fees

10,000 101,830

10,000 100,000

96,000

The Institute has overpaid the Councillors a total fee of $11,890 during the financial year, as a result of misinterpretation of Tertiary Education Commission’s fee framework. The Institute has since sought refund from the Councillors. The total overpayment has been included in Note 7 Trade and Other Receivables 16 Related party transactions and key management personnel The Institute is a wholly owned entity of the Crown. The Government influences the roles of the Institute as well as being its major source of revenue. During the year the Institute purchased the following items from firms in which Council members are associated with. The following transactions were carried out and balances were outstanding with related parties: Actual

Actual

2015

2014

224

674

Accounts Payable to the Institute

Accounts Receivable from the Institute

4,775 10,000 -

4,725 11,161 -

78 -

1,302 -

Waihopai Runaka - M Skerrett (Chair) Services provided by the Institute Goods provided to the Institute

Facilities hire - Marae Venture Southland - P Simmonds (Board Member) Services provided by the Institute Services provided to the Institute Accounts Payable to the Institute Accounts Receivable from the Institute Survey conducted on behalf of Venture Southland Hockey Southland - P Simmonds (Chair) Services provided by the Institute Services provided to the Institute Accounts Payable to the Institute Accounts Receivable from the Institute Sponsorship

| Annual Report 2015

FINANCIAL STATEMENTS

Actual

2015

2014

Southern Education Charitable Trust - P Simmonds (Trustee) Services provided by the Institute Services provided to the Institute Accounts Payable to the Institute Accounts Receivable from the Institute Activity and Employment Services Southern Lakes English College Limited - B Guha (Director) Services provided by the Institute Services provided to the Institute Accounts Payable to the Institute Accounts Receivable from the Institute Provision of English Language Courses

50,000 -

50,173 -

603,652 53,073

248,056 43,153

27,158 -

7,359 -

6,179 -

Southern Education Consultants NZ Ltd - B Guha (Shareholder) Services provided by the Institute Services provided to the Institute Accounts Payable to the Institute Accounts Receivable from the Institute Academic Facilitation Ferhardi Limited - B Guha (Director) Services provided by the Institute Services provided to the Institute Accounts Payable to the Institute Accounts Receivable from the Institute Academic Facilitation No provision has been required, nor any expense recognised, for impairment of receivables from related parties

Annual Report 2015 |

FINANCIAL STATEMENTS

16 Related party transactions and key management personnel (Continued) Key management personnel compensation

Actual

2015

2014

$’000

Council Members Full-time equivalent members Remuneration

102

1,157

1,327

1,259

1,423

Executive Management Team, including Chief Executive Full-time equivalent members Remuneration Total Full-time equivalent members Total key management personnel compensation

Key management personnel include the Chief Executive, Heads of Faculties (Eight staff 2015: seven staff 2014) and two members of the senior management team. Council members are considered part of the key management personnel and their fees have been included above and also in note 15. The above compensation includes the actual payments (27 fortnightly payments) made during the year. There are close family members of key management personnel employed by the Southern Institute of Technology. The terms and conditions of those arrangements are no more favourable than would have been adopted if there were no relationship with key management personnel. These amounted to: Actual Actual

Remuneration paid close family members of key management personnel

2015

2014

$’000

144

176

Actual

2015

2014

Related party transections The transaction between the Institute and Southern Eductation Charitable Trust is on below:

Southern Education Charitable Trust Services provided by the Institute Services provided to the Institute Accounts Payable to the Institute Accounts Receivable from the Institute Activity and Employment Services

50,000 -

50,173 -

The transaction between the Institute and Southern Lakes English College Limited is on below:

Southern Lakes English College Limited Services provided by the Institute Services provided to the Institute Accounts Payable to the Institute Accounts Receivable from the Institute Equity Injection/Purchase Provision of English Language Courses

| Annual Report 2015

Actual

2015

2014

603,652 53,073 25,000

248,056 43,153 306,276

FINANCIAL STATEMENTS

17 Categories of financial assets and liabilities Southern Institute of Technology

Group

Actual

2015

2014

2015

2014

$’000

$'000

6,587

11,094

6,605

11,100

692

1,705

699

1,705

Investments - Term deposits

18,609

7,555

18,609

7,616

Total loans and receivables

25,888

20,354

25,913

20,421

Actual

2015

2014

2015

2014

$’000

$'000

Investments

Total available for sale financial assets

2,391

1,388

2,391

1,388

2,391

1,388

2,391

1,388

Loans and receivables Cash and cash equivalents Debtors and other receivables

Financial assets at fair value through profit and loss Investments - Equity investments Available for Sale financial assets

Financial liabilities measured at amortised cost Creditors and other payables Borrowings - secured loans Total financial liabilities measured at amortised cost

Annual Report 2015 |

FINANCIAL STATEMENTS

18 Ageing of financial liabilities Less than 6 Months

Between 6 months and 1 year

Between 1 and 5 years

Southern Institute of Technology and Group 2014

$’000

Creditors and other payables

1,388

2,391

Borrowings Southern Institute of Technology and Group 2015 Creditors and other payables Borrowings

19 Credit Risk

22 Capital Management

The Institute has minimal credit risk in its holdings of students, trade debtors and other financial instruments. These instruments include cash, bank deposits, and accounts receivable.

The Institute’s capital is its equity, which comprises retained earnings and reserves. Equity is represented by its assets.

The Institute places its investments with registered banks and financial institutions. The Institute spreads its exposure to risk by limiting the amount that can be invested in any one institution. The Institute believes that these policies reduce the risk of any loss which could arise from its investment activities. Fixed interest deposits mature monthly when cash requirements are reviewed.

The Institute manages its revenues, expenses, assets, liabilities and general financial dealings prudently. The objective of managing the Ministry’s equity is to ensure the Institute effectively achieves its goals and objectives for which it has been established, whilst remaining a going concern. 23 Subsequent Events

Accounts receivable are stated at their estimated realisable value after providing for amounts not considered recoverable. There is no significant concentration of credit risk for accounts receivable.

There have been no material subsequent events.

Southern Institute of Technology experienced an increase in Income of 2% as compared to budget. This was mainly due to the increase in International EFTS over the budgeted quantity and also due to additional funding being recieved from TEC subsequent to the budget having been finalised. The surplus achieved of $2.4 million was over and above the budgeted surplus of $0.9 million.

20 Market Risk The Institute is not exposed to interest rate risk on its financial assets. Deposits are placed on pre-determined interest rates, and this reduces any potential market risks. The Institute has no exposure to currency risk. 21 Liquidity Risk The Institute maintains a target level of investments which mature within the next 12 months. The maturity profiles of the Institute’s interest bearing investments are disclosed in notes 6 and 9 respectively.

| Annual Report 2015

24 Performance against Budget

FINANCIAL STATEMENTS

25 Childcare Centre Actual

Budget

Actual

2015

2014

$’000

Ministry Grants

797

800

810

Childcare Fees

294

250

299

1,091

1,050

1,109

892

838

846

Communication

Depreciation

939

915

889

152

135

220

The surplus on the Childcare Centre account was arrived at as follows: Revenue received

Other Revenue Less Expenditure Payroll and Related Expenses Consumables

Net Surplus Statistics for Funded Hours

2015

2014

Hours

Under two year olds

21,416

20,458

Over two year olds

69,407

73,306

The Childcare Centre is an integral part of Southern Institute of Technology’s provision of student services. Furniture and Equipment are purchased by Southern Institute of Technology and the use of these assets is reflected in the depreciation charge. Repairs and maintainance costs on the buildings used are recharged through occupancy charges in the way as all other Cost Centres. No capital charge has been applied by Southern Institute of Technology on the Childcare Centre.

Annual Report 2015 |

FINANCIAL STATEMENTS

26 Investment in associate Actual

Actual

2015

2014

$’000

356

306

The Institute acquired a 49% shareholding in Southern Lakes English College Limited on 1st January 2014. Movement in the carrying amount of the investment in associate: Balance at 1 January New Investments during the year Disposal of Investments during the year

417

356

Assets

1,319

1,114

Liabilities

1,048

814

Revenue

1,775

1,409

Surplus/(deficit)

102

Group’s interest

Share of total comprehensive Revenue Dividend Balance at 31 December Summarised financial information of associate presented on a gross basis

49%

Share of associate’s contingent liabilities incurred jointly with other investors

Contingent liabilities that arise because of several liability

Southern Lakes English College Limited is an unlisted company. Accordingly, there are no published price quotations to determine the fair value of this investment.

27 Salary Advance to Key Management Personnel A salary advance totalling $35,351 was made to a member of key management personnel during the year. No interest was payable. The salary advance was fully repaid on 11th November 2015.

| Annual Report 2015

FINANCIAL STATEMENTS

Statement of Resources For the year ended 31 December 2015

Staff The Institute employs the following full-time equivalent staff: Tutorial

Non-Teaching and Allied

Managerial

Total

2015

2014

2015

2014

2015

2014

2015

2014

New Media, Arts and Business

42.37

43.27

7.92

7.13

0.69

1.00

50.98

51.40

Health, Humanities and Computing

42.83

43.02

5.09

4.57

1.00

48.92

48.59

Trades and Technology

1.01

1.00

37.14

40.25

17.76

14.27

55.91

55.52

Gore Campus

4.22

4.55

1.99

1.73

6.21

6.28

Queenstown Campus

7.32

3.76

1.79

1.49

9.11

5.25

Christchurch Campus

20.23

25.39

13.70

13.03

33.93

38.42

SIT2LRN

2.20

1.48

23.26

22.22

1.00

1.34

26.46

25.04

Finance, Admin, Directorate, Human Resources, Facilities, Educational Services, Library, Marketing, International

0.10

0.31

93.21

79.68

4.00

97.31

83.99

14.00

25.09

14.00

25.09

178.72

169.21

342.83

339.58

Caretakers, Childcare, Grounds, Cafeteria, Health and Counselling 156.41

162.03

7.70

8.34

Library The Instituteâ&#x20AC;&#x2122;s Library has a collection of 23,352 books and 119 regular periodical subscriptions. Issues for 2015 totalled 27,584. The depreciated replacement cost of library stock is $603,000. The library had a permanent staff of 4.80 FTE during 2015.

Annual Report 2015 |

Glossary of Acronyms EER

External Evaluation and Review

EEO

Equal Education/Employment Opportunities

EFTS

Equivalent Full Time Student

FTE

Full Time Equivalent

ITP

Institutes of Technology and Polytechnics

KPI

Key Performance Indicators

MOE

Ministry of Education

NQF

National Qualification Framework

NZQF

New Zealand Qualifications Framework

NZQA

New Zealand Qualifications Authority

PBE

Public Benefit Entity

QMS

Quality Management Systems

SAC

Student Achievement Component

SAEER

Self-Assessment, and External Evaluation and Review

SDR

Single Data Return

SIT

Southern Institute of Technology

TEC

Tertiary Education Commission

TEO

Tertiary Education Organisation

TES

Tertiary Education Strategy

FINANCIAL STATEMENTS

Annual Report 2015 |

STATEMENT OF ACCOUNTING POLICIES

| Annual Report 2015

STATEMENT OF ACCOUNTING POLICIES

Annual Report 2015 |

Contact Details Southern Institute of Technology Private Bag 90114 133 Tay Street Invercargill 9840 Southland

Freephone 0800 4 0 FEES (0800 4 0 3337) Phone (03) 211 2699 Fax (03) 214 4977 Email info@sit.ac.nz